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Home My WebLink AboutMinutes - Audit Investment and Finance Committee September 28, 2010MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, September 28, 2010 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:00 a.m. II. ROLL CALL Present: Absent: Paul Gibson, Finance Director Luis Espinoza, Assistant Finance Director Thomas Jeffrey, Deputy City Treasurer CITYOOUNCIGACTION Cindy Finerty, Mayor APPROVED DENIED Robert A. Spiegel, Council Member RECEIVED��r OTHE►t John Wohlmuth, City Manager MEETING DATE Justin McCarthy, ACM/Redevelopment AYES,, i , David Erwin, City Attorney NOES:1c1 °n Jono Hildner, Committee Member ABSENT; /VU na Patricia Kent, Committee Member ABSTAIN: a James Walker, Committee Member VERIFIED BY: ' /t Everett Wood, Committee Member Original on File with City Clerk's Office Also Present: Anthony Hernandez, Senior Financial Analyst Richard Mogensen, Desert Willow Golf Resort Niamh Ortega, Recording Secretary Veronica Tapia, RDA Accountant Derek White, Desert Willow Golf Resort 111. ORAL COMMUNICATIONS None. GAFinanceWiamh Ortega\Investment Committee\2010\Minutes 092810.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES September 28, 2010 IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF JULY 27, 2010 MOTION was made by Member Erwin and seconded by Member Hildner to adopt and approve in their entirety the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on July 27, 2010. V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR JULY AND AUGUST 2010 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended August 31, 2010 was approximately $206.3 million. Interest earnings were approximately $166,000. Yield -to -maturity was approximately 0.93%. The book value of the Redevelopment Agency Portfolio for the period ended August 31, 2010 was approximately $276.3 million. Interest earnings were approximately $193,000. Yield -to -maturity was approximately 0.79%. MOTION was made by Member Spiegel and seconded by Member Walker to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for July and August 2010 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR JULY AND AUGUST 2010 MOTION was made by Member Walker and seconded by Member Erwin to receive and file the Local Agency Investment Fund account statements for July and August 2010 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR JULY AND AUGUST 2010 MOTION was made by Member Finerty and seconded by Member Walker to receive and file the California Asset Management Program account statements for July and August 2010 as presented. Motion unanimously approved. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE -September 28 2010 MINUTE - D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR JULY AND AUGUST 2010 Chairman Gibson reported that the July report typically contains sero balances, so it was not provided. August reflects the month's activity as well as the year-to-date, so the information is clearly visible. The City's year-to-date revenue for August was $1.744 million versus a prior year of $4.66 million. The main reason for the difference is the payment back to the General Fund for the Energy loan. Sales tax was received from the State for the quarter including June through September, which showed an increase over last year of 13.1 %. This was the first quarter in at least the last five to reflect an increase. The year-to-date expenditures for August was $3.571 million versus prior year of $4.578. MOTION was made by Member Finerty and seconded by Member Walker to receive and file the City financial reports for July and August 2010 as presented. Motion unanimously approved. Ms. Tapia reviewed the monthly revenues and expenses for the Redevelopment Agency. Year-to-date for the end of August 2010 was $438,000 in revenue and $5.6 million in expenditures, the majority of which were debt service payments. MOTION was made by Member Erwin and seconded by Member Finerty to receive and file the Redevelopment Agency financial reports for July and August 2010 as presented. Motion unanimously approved. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR JULY AND AUGUST 2010 Mr. Hernandez reported that expenditures were less than budget by $12,000, translating to a net income of $20,000. There is an additional vacancy coming open this month, which results in a total of three vacancies. There is some interest expressed in the available space, although there is a wide variety of space availability throughout the city. It was pointed out that the City does not compete with the private market to fill the vacancies. The architectural drawings for tenant improvements at the Water Resources building were approved and staff will be going out to bid. It should be presented for approval at the October 28th Council meeting. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES September 28, 2010 MOTION was made by Member Hildner and seconded by Member Wood to receive and file the Parkview Professional Office Buildings financial reports for July and August 2010 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JULY AND AUGUST 2010 Mr. White reported that year-to-date is ahead of budget in revenues at almost $185,000 versus a budget of $178,000. There were additional days of service due to renovations beginning a little later than anticipated. Labor is at $308,000 versus a budget of $286,000 and a prior year of $302,000. Layoffs occurred in August instead of in previous months as expected, and there were some additional costs associated with that. Operating expenses budget was $227,000 versus a budget of $240,000 and prior year of $232,000. The bulk of the savings were related to the timing of purchases for maintenance and grounds. Overall, year-to-date shows the course at $738,000 in the red versus a budget of $720,000, but significantly ahead of last year since there was one course out of commission in August last year. Mr. Mogensen reported that the overall market was weak, and most major competitors were down 10-15% over the prior year. He stated that the overall results for the month were good considering that the renovation started at the time that it did. With regard to the rounds mix, public play was down about 600 from last year. Resident play was down, but it is possible some of these players had purchased the VIP cards. The trend for golf outings is up for this quarter and also going into next year. The VIP rounds were 687 versus 234 last year. Platinum club sales are ahead of pace compared to last year also. The renovations for the terrace should be completed by the first week in November, and the balance of the building should be complete in January 2011 as planned. MOTION was made by Member Wood and seconded by Member Erwin to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for June 2010 as presented. Motion unanimously approved. 4 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES September 28, 2010 VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. Vill. INFORMATIONAL ITEMS The auditors left last week and finished their field work. There are a few reports to be completed prior to finalizing the CAFR. Mr. Gibson also reported that it is now required to provide a complete salary and benefit report as part of the final report. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:24 a.m. to the next regular meeting of October 26, 2010. Niam_hjOrtega, Re ing Secretary A