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HomeMy WebLinkAboutMinutes - Audit Invstment Finance Committee - May 22, 2012IV MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, May 22, 2012 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. ROLL CALL Present: Absent: Paul Gibson, Finance Director Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer William Kroonen, Mayor Pro-Tempore Robert A. Spiegel, Mayor John Wohlmuth, City Manager David Erwin, City Attorney Russell Campbell, Community Member Ron Crisp, Committee Member Patricia Kent, Committee Member Susan Marie Weber, Committee Member CITY COUNCIL ACTION APPROVED DENIED RECEIVED d OTHER. MEETING DA iF!.'V�iWr_1 li'f :WEB I'MAW • ! 1 i+GCS Original on File with City Clerk's Also Present: Al Colombo, Desert Willow Golf Resort Anthony Hernandez, Senior Financial Analyst Richard Mogensen, Desert Willow Golf Resort Niamh Ortega, Recording Secretary Derek White, Desert Willow Golf Resort ORAL COMMUNICATIONS None. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF APRIL 24. 2012 MOTION was made by Member Spiegel and seconded by Member Erwin to adopt and approve as amended the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on April 24, 2012. Motion unanimously approved. INVESTMENT & FINANCE COMMITTEE MINUTES MAY 22, 2012 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR APRIL 2012 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended April 30, 2012 was approximately $210.2 million. Interest earnings were approximately $72,000. Yield -to -maturity was approximately 0.42%. MOTION was made by Member Kroonen and seconded by Member Campbell to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report for April 2012 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR APRIL 2012 MOTION was made by Member Campbell and seconded by Member Erwin to receive and file the reports for Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), Riverside County Investment Pool, and Rabobank Investment Pool for April 2012. Motion unanimously approved. C. CITY FINANCIAL REPORT FOR APRIL 2012 Mr. Gibson provided an overview of the report. He stated that the City was in the midst of issues surrounding Successor Agency funds relative to recently received information that the City will like not be reimbursed any advances made to RDA. The City is looking into alternatives, although the Department of Finance will likely have the final word when it comes to interpreting the trailer bill. The decision will have a greater impact on reserves than on general fund operations. MOTION was made by Member Campbell and seconded by Member Kroonen to receive and file the City financial reports for April 2012 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR APRIL 2012 Mr. Hernandez provided an overview of the report. He reported that revenues and expenditures are better than budget, and there has been no change in the occupancy rate. MOTION was made by Member Spiegel and seconded by Member Campbell to receive and file the Parkview Professional Office Buildings financial reports for April 2012 as presented. Motion unanimously approved. 2 INVESTMENT & FINANCE COMMITTEE MINUTES MAY 22, 2012 E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR APRIL 2012 Mr. Mogensen and Mr. White provided an overview of the reports in the agenda packet. April was short by $23,000 in the golf portion of revenue, and the biggest challenge has been rate compression given the discounts offered by competing courses. Food & Beverage exceeded budget by $11,000 although it did not exceed prior year. The bottom line is ahead by $264,000. It is expected that the year will finish ahead on both top and bottom line. It is also expected that the numbers will show weakness from April on. MOTION was made by Member Erwin and seconded by Member Campbell to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for April 2012 as presented. Motion unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS Mr. Gibson discussed the reserve policy and indicated there is $9 million still threatened by the State. The City is currently still maintaining the required reserve amount. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:17 a.m. to the next scheduled meeting of June 26, 2012. Niamh Ortega, Recording , cretary 3