HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee May 24, 2011�T--� MINUTES
REGULAR MEETING OF THE PALM DESERT
_ AUDIT, INVESTMENT, AND FINANCE COMMITTEE
Tuesday, May 24, 2011
I. CALL TO ORDER
Chairman Gibson called to order a regular meeting of the Palm Desert Audit,
Investment and Finance Committee at 10:02 a.m.
II. ROLL CALL
Present -
IT!
Absent:
Jean Benson, Mayor Patricia Kent, Committee Member
David Erwin, City Attorney
Luis Espinoza, Asst. Finance Director
Paul Gibson, Finance Director
Thomas Jeffrey, Deputy City Treasurer
Justin McCarthy, ACM/Redevelopment
Robert A. Spiegel, Mayor Pro Tempore
Susan Marie Weber, Committee Member (10:04 a.m.)
John Wohlmuth, City Manager (10:06 a.m.)
Also Present:
Anthony Hernandez, Senior Financial Analyst
Richard Mogensen, Desert Willow Golf Resort
Niamh Ortega, Recording Secretary
Veronica Tapia, Redevelopment Accountant
Derek White, Desert Willow Golf Resort
ORAL COMMUNICATIONS
None.
APPROVAL OF MINUTES
CITY COUNCIL ACTION
APPROVED _ IF, DEND
RECEIVED 7UTOTHER,
MEETIN.0 DATE
AYES:
NOES:
ABSENT:
ABSTAIN:
VERIFIED BY:
Original on File with City
A. MINUTES OF THE REGULAR MEETING OF APRIL 26. 2011
's Office
MOTION was made by Member Spiegel and seconded by Member
Erwin to adopt and approve in their entirety the Minutes of the
regular meeting of the Palm Desert Audit, Investment and Finance
Committee held on April 26, 2011. Motion unanimously approved.
G:TinanceWiamh Ortega\Investment Committee\201 1 Winutes 052411.docx
AUDIT, INVESTMENT, AND FINANCE COMMITTEE
MINUTES MAY 24, 2011
V. NEW BUSINESS
A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES
AND SUMMARY OF CASH REPORTS FOR APRIL 2011
Member Jeffrey presented the report and highlighted the following points:
The book value of the City Portfolio for the period ended April 30, 2011
was approximately $199 million. Interest earnings were approximately
$109,000. Yield -to -maturity was approximately 0.76%.
The book value of the Redevelopment Agency Portfolio for the period
ended April 30, 2011 was approximately $225.9 million. Interest earnings
were approximately $167,000. Yield -to -maturity was approximately 0.73%.
Mr. Jeffrey highlighted that the third chart on Page 2 of the report reflects
that the County pool is 40% of the portfolio, and clarified that this was
within the context of the City only, and that the pool was 19% of the overall
portfolio.
MOTION was made by Member Spiegel and seconded by Member
Erwin to recommend that the City Council receive and file the City
and Redevelopment Agency Investment Schedules and Summary of
Cash Reports for April 2011 as presented. Motion unanimously
approved.
B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR
APRIL 2011
MOTION was made by Member Erwin seconded by Member
Wohlmuth to receive and file the Local Agency Investment Fund
(LAIF), California Asset Management Program (CAMP), Riverside
County Investment Pool, and Rabobank Investment Pool statements
for April 2011 as presented. Motion unanimously approved.
C. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY
FINANCIAL REPORTS FOR APRIL 2011
Chairman Gibson presented the City's report. He indicated that transient
occupancy tax and sales tax is up, and property tax and interest earnings
are down over last year. He also highlighted that the City received
approximately $6,000 in franchise fees from Verizon for ROS service
installed in a portion of the city. The fees were determined under the State
Franchise Agreement, and this was the first payment received.
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AUDIT, INVESTMENT, AND FINANCE COMMITTEE
MINUTES MAY 24, 2011
MOTION was made by Member Erwin and seconded by Member
Spiegel to receive and file the City financial report for April 2011 as
presented. Motion unanimously approved.
Ms. Tapia reviewed the revenues and expenses for the Redevelopment
Agency. Cumulative revenue for April 2011 was $672,000, and
expenditures were $2.8 million, mostly in the form of payments for the
aquatic center. Year-to-date revenues were $58.6 million, and
expenditures were $80.9 million.
MOTION was made by Member Spiegel and seconded by Member
Erwin to receive and file the Redevelopment Agency financial report
for April 2011 as presented. Motion unanimously approved.
D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL
REPORTS FOR APRIL 2011
The Water Resources Control Board tenant improvements are 100%
complete.
MOTION was made by Member Spiegel and seconded by Member
Erwin to receive and file the Parkview Professional Office Buildings
financial reports for April 2011 as presented. Motion unanimously
approved.
E. PALM DESERT GOLF COURSE FACILITIES CORPORATION
FINANCIAL REPORTS FOR APRIL 2011
Mr. Mogensen reported that April was a successful month for Desert
Willow. Approximately 500 rounds were lost due to high winds, and similar
issues are being experienced for the current month; however, other clubs
in the area have suffered much greater losses for the same period, so
Desert Willow is doing relatively well considering the circumstances. Mr.
Mogensen reviewed the reports that were distributed as part of the
agenda packet, and summarized that overall year-to-date figures were
$692,000 compared to a budget of $389,000. He concluded that May will
be a more challenging month than April, but he remains optimistic for a
successful month.
MOTION was made by Member Erwin and seconded by Member
Wohimuth to receive and file the Palm Desert Golf Course Facilities
Corporation financial reports for April 2011 as presented. Motion
unanimously approved.
VI. CONTINUED BUSINESS
None.
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AUDIT, INVESTMENT, AND FINANCE COMMITTEE
MINUTES MAY 24. 2011
VII. OLD BUSINESS
A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE
None.
Vill. INFORMATIONAL ITEMS
Mr. Gibson informed the Committee that there would be some changes made to
fund assignments based on revisions to GASB 54. He highlighted those funds
and explained how the funds will be designated based on the revised definitions.
It will be presented for Council action prior to June 30, 2011.
There was some discussion relative to meeting on an alternative date in
September. If this is necessary, it will be presented to the Committee at the July
meeting for approval.
IX. ADJOURNMENT
There being no further business, this meeting, upon motion duly made, seconded
and carried was adjourned at 10:23 a.m. to the next scheduled meeting of June
28, 2011.
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Niamh Ortega, Rec ding Secretary
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