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Home My WebLink AboutAudit Invstmnt Finance Cmte - 01-22-2013 � MINUTES /` - �� REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE " Tuesday, January 22, 2013 - 10:00 a.m. I. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. II. ROLL CALL Present: Absent: Paul Gibson, Finance Director Patricia Kent, Committee Member Thomas Jeffrey, Deputy City Treasurer Jan Harnik, Mayor Jean Benson, Mayor Pro-Tempore John Wohlmuth, City Manager CITYCOUNCILAC"Tlc�'�i David Erwin, City Attorney (10:04 a.m.) AI'PROVF.D _ _ __. �'R�;?Vt6:D ___ Russell Campbell, Community Member RECI:IVI:D �- Fc�� __.. !�k'1�t�,�t__ ___ Ron Crisp, Committee Member ____ wi. MEETiNG DATE ��-/u-�C! ' Also Present: AYF.S:�eL'1�.a � 1��p Tcz�n� � Jared Burns, Desert Willow Golf Resort , �"'� '`� �� arnr K_ Nor.s: N�ne. Anthony Hernandez, Senior Financial Analyst p�;SENT: ►�bn�- Richard Mogensen, Desert Willow Golf ResortABSTAIN:-�1_ ��_ Niamh Ortega, Recording Secretary �RIFIED BY:- Q�+�--I�U V Nitin Patel, CPA, White Nelson Diehl Evans, � r�ginal on File witb City Clerk's OfCc:e III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF NOVEMBER 27 2012 MOT/ON was made by Member Campbel/ and seconded by Member Crisp to adopt and approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on November 27, 2012. Motion approved; Members Harnik and Benson abstained. INVESTMENT & FINANCE COMMITTEE MINUTES January 22, 2013 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR NOVEMBER AND DECEMBER 2012 Member Jeffrey presented the report and highlighted the following points: The book value of the City portfolio for the period ended November 30, 2012 was approximately $194.8 million. Interest earnings were approximately $58,000. Yield-to-maturity was approximately 0.37%. The book value of the City portfolio for the period ended December 31, 2012 was approximately $192.1 million. Interest earnings were approximately $54,000. Yield-to-maturity was approximately 0.34%. Economists predict a slowdown for the first half of 2013, and expect that it will pick back up for the second half. Sales tax for the third quarter showed a 4% increase over prior year. MOTION was made by Member Campbel/and seconded by Member Erwin to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Reports for November and December 2012. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR NOVEMBER AND DECEMBER 2012 Chairman Gibson provided an overview of the various reports. MOT/ON was made by Member Campbell and seconded by Member Crisp 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 November and December 2012. Motion unanimously approved. C. CITY FINANCIAL REPORT FOR NOVEMBER AND DECEMBER 2012 Chairman Gibson provided an overview of the report. The most recent sales tax report reflects a 4% increase over the prior year, and as a result, the $16.4 million budgeted will be revised at mid-year to $17.1 million. TOT is also ahead of last year, and the budgeted amount of $8.0 million is projected to be approximately $8.3 million. With regard to expenditures, the monthly billing for the Sheriff's department is a month behind. MOTION was made by Member Campbell and seconded by Member Erwin to receive and file the City financial report for November and December 2012 as presented. Motion unanimously approved. 2 INVESTMENT & FINANCE COMMITTEE MINUTES January 22, 2013 D. PARKVIEW PROFESSIONAL OFFICE BU�LDINGS FiNANCIAL REPORT FOR OCTOBER 2012 Mr. Hernandez provided an overview of the report. The Altum Group is a new tenant that now occupies office space at the office complex. There are currently six vacancies, and the complex is doing well compared to similar office space locations throughout the area. Revenues were $435,000 versus a budget of $449,000. Expenditures were $231,000 versus a budget of $236,000. Net income was $88,000, which is $7,500 less than budgeted. MOT/ON was made by Member Wohlmuth and seconded by Member Campbell to receive and file the Parkview Professional Office Buildings financial report for November and December 2012 as presented. Motion unanimous/y approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2012 It was reported that the rack rate is $185 during season, and $135 off-season. The rack rate is in the top three for public courses in the valley.PGA is more expensive, but is not consistently part of the top three. MOTION was made by Member Campbell and seconded by Member Crisp to receive and file the Pa/m Desert Golf Course Facilities Corporation financial reports for November and December 2012 as presented. Motion unanimously approved. F. PRESENTATION OF THE CITY OF PALM DESERT AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 �White Nelson Diehl Evans LLP) Chairman Gibson introduced Mr. Nitin Patel. He also complimented him and his firm for doing an excellent job of keeping unnecessary stress away from the City given the additional workload with the dissolution of the Redevelopment Agency (RDA). Mr. Patel reviewed the procedures followed and reports issued for the audit of the fiscal year ended June 30, 2012, and indicated that the firm issued an unqualified (clean) opinion. Mr. Patel also referred to Pages 20 — 25 of the Comprehensive Annual Financial Repo�t for the above-mentioned period, and summarized that the total fund balances are approximately $75 million. With the dissolution of RDA, there was a significant difference between this audit and those of previous years, and there will also be a difference in how future statements will look. 3 INVESTMENT & FINANCE COMMITTEE MINUTES January 22, 2013 Finally, Mr. Patel reviewed the responsibilities of management and the auditors for the audit, and reported that there were no difficulties, adjustments, or disagreements between management and auditors. MOTION was made by Member Campbell and seconded by Member Wohlmuth to recommend that the City Council receive and file the City of Pa/m Desert audited reports for the fiscal year ended June 30, 2012. Motion unanimously approved. G. PRESENTATION OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 (White Nelson Diehl Evans LLP) Mr. Gibson reported that this item is audited separately as a component unit due to ABC licensing. He also mentioned that staff is currently reviewing recommendations for next year's budget process. MOTION was made by Member Campbell and seconded by Member Erwin to recommend that the City Council receive and file the Palm Desert Recreationa/Facilities Corporation financial reports for the fiscal year ended June 30, 2012. Motion unanimously approved. H. LIMITED PROCEDURES REVIEW OF VARIOUS PALM DESERT OPERATORS FOR COMPLIANCE WITH THE CITY OF PALM DESERT'S TRANSIENT OCCUPANCY TAX ORDINANCE FOR THE 2010 AND 2011 CALENDAR YEAR (White Nelson Diehl Evans LLP) Five properties were audited. One operator appealed the audit findings regarding underpaid tax, and it was found in favor of the City on one point and in favor of the operator on the other. A revised amount has been agreed upon by both parties and it is in the process of being collected. MOTION was made by Member Wohlmuth and seconded by Member Erwin to recommend that the City Council receive and file the Limited Procedures Review of various Palm Desert operators for compliance with the City of Pa/m Desert's Transient Occupancy Tax ordinance for the 2010 and 2011 calendar year. Motion unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. 4 INVESTMENT 8� FINANCE COMMITTEE MINUTES January 22, 2013 VIII. INFORMATIONAL ITEMS None. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 11:00 a.m. to the next scheduled meeting of February 26, 2013. / ".� �'�L-� � Niamh Ortega, Recordi Secretary 5