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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee - September 25, 2012MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, September 25, 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 Robert A. Spiegel, Mayor William Kroonen, Mayor Pro-Tempore John Wohlmuth, City Manager David Erwin, City Attorney Russell Campbell, Community Member (10:04 a.m.) Ron Crisp, Committee Member Patricia Kent, Committee Member CITY COUNCIL ACTION Susan Marie Weber, Committee Member APPROVED DENIED RECEIVED -W- F le OTHER Also Present: Al Colombo, Desert Willow Golf Resort Anthony Hernandez, Senior Financial AnalyS:Richard LF�ETINGDATE Mogensen, Desert Willow Golf ResS. �P Niamh Ortega, Recording Secretary ABSENT: �n� Derek White, Desert Willow Golf Resort ABSTAIN: Ju Mr - VERIFIED BY: III. ORAL COMMUNICATIONS Original on File with City Clerk . Oftice None. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF JULY 24, 2012 MOTION was made by Member Spiegel and seconded by Member Wohlmuth to adopt and approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on July 24, 2012. Motion unanimously approved. INVESTMENT & FINANCE COMMITTEE MINUTES SEPTEMBER 25, 2012 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR JULY AND AUGUST 2012 Member Jeffrey presented the reports and highlighted the following points: The book value of the City portfolio for the period ended July 31, 2012 was approximately $205.8 million. Interest earnings were approximately $73,000. Yield -to -maturity was approximately 0.42%. The book value of the City portfolio for the period ended August 31, 2012 was approximately $206.8 million. Interest earnings were approximately $71,000. Yield -to -maturity was approximately 0.40%. Member Jeffrey discussed the effect of lower interest rates on the City's investment portfolio. He indicated that short-term interest rates are expected to remain low through 2013. MOTION was made by Member Spiegel and seconded by Member Erwin to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Reports for July and August 2012 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JULY AND AUGUST 2012 MOTION was made by Member Erwin and seconded by Member Kroonen 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 July and August 2012. Motion unanimously approved. C. CITY FINANCIAL REPORT FOR JULY AND AUGUST 2012 Mr. Gibson provided an overview of the report. He stated that the most recent sales tax summary indicated that sales tax had increased 6 -7% over last quarter. TOT is reflected as higher than the same period last year and reserves have increased by $1 million last year. Overall, the City is holding its own against the budgeted figures to date. MOTION was made by Member Wohlmuth and seconded by Member Erwin to receive and file the City financial report for July and August 2012 as presented. Motion unanimously approved. 2 INVESTMENT & FINANCE COMMITTEE MINUTES SEPTEMBER 25, 2012 D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR JULY AND AUGUST 2012 Mr. Hernandez provided an overview of the report. Expenditures are less than budget, and overall actual are about $10,000 ahead of budget. An engineering firm wishes to occupy the space formerly occupied by Senator Benoit, and their request will be taken to the next Council meeting for review. MOTION was made by Member Spiegel and seconded by Member Kroonen to receive and file the Parkview Professional Office Buildings financial reports for July and August 2012 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JULY AND AUGUST 2012 Mr. Mogensen provided an overview of the reports in the agenda packet. He reported that the trend since April is that they are running behind budget, and that trend continued last month. There has been a market shift to more wholesale and less rack rates, and the ADR is flat to the budget. Year-to-date reflects that they are $57,000 under budget but up $6,700 on their bottom line. Mr. Mogensen reviewed the events that are planned for November and December in an effort to increase revenue. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for July and August 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 reported that the County audit was complete and there were no findings. He also reported that there are more upcoming audits for Housing and Redevelopment, and that decisions on funds owed to the City by Redevelopment have not yet been finalized. He expects to be closer to resolution in April 2013. 3 INVESTMENT & FINANCE COMMITTEE MINUTES SEPTEMBER 25, 2012 IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:22 a.m. to the next scheduled meeting of October 23, 2012. Niamh Ortega, Recordin ecretary 4