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1995 09 13 IAB4 6(4 QumtA 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 - (619) 777-7000 FAX (619) 777-7101 INVESTMENT ADVISORY BOARD AGENDA Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 September 13, 1995 - 5:30 P.M. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call II CONFIRMATION OF AGENDA III PUBLIC COMMENT -(This is the time set aside for public comment on any matter not scheduled on the agenda.) IV CONSENT CALENDAR A. Approval of Minutes of July 12, 1995 V BUSINESS SESSION - (Please bring your July 1995 Agenda Packet). A. Transmittal of Treasury Report for June 30 and July 31, 1995. B. Continued Consideration of LAIF Investments 1. LAIF Contract - Refer to July Agenda Packet item 2. Investment Report furnished by Tom Lewis - Refer to July Agenda Packet item 3. Coachella Valley Treasurers Reports - Refer to July Agenda Packet item 4. LAIF Earnings Rate and Balances for FY 94/95 - Refer to July Agenda Packet item 5. LAIF Investment Policies - Refer to July Agenda Packet item 6. Diversification of Investments 7. Mutual Funds C. Continued Consideration of the Investment Policy - Percentages of Investments (See Informational Item A) VI BOARD MEMBER COMMENTS VII INFORMATIONAL ITEMS .A. Percentages of Investments B. LAIF Primary Dealers and Direct Issuers C. LAIF Authorized Personnel D. Items of Interest E. Meeting with LAIF Administrator - October 20, 1995 F. Redevelopment Agency (RDA) Separate Checking Account Vill ADJOURNMENT MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 �� i U � Wo- .nn .� OF TNT INVESTMENT ADVISORY BOARD MEETING: September 13, 1995 Business Item: A ITEM TITLE Transmittal of Treasury Report for June 30, 1995 and July 31, 1995 ISSUE AND DISCUSSION: Attached please find two sets of Treasury Reports for June & July 1995. The new format was prepared based upon input from the Investment Advisory Board, review of other City Treasury Reports, and out existing report. The new format consists of: Cover letter Treasurers Report Distribution of Cash & Investments & Balances Balance Sheet Bank Reconcilement RECOMMENDATION: Accept the Treasury Reports for June & July 1995 and adopt the new format for subsequent reports. for submissioli to the Investment Advisory Board: J n M. Falconer finance Director TO: FROM: SUBJECT DATE: T a 0 4ht 4 4 QUM& MEMORANDUM La Quinta City Council John Falconer, Finance Director/Treasurer Treasurer's Reports for July 31, 1995 August 23, 1995 Attached is the Treasurer's Report for the month ending July 31, 1995. This report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. Cash and Investments: Increase of $98,704. due to the net effect of revenues in excess of expenditures. State Pool: ICMA: Increase of $300,000. due to transfers to and from the cash and investment accounts. No change. Mutual Funds: Increase of $13,010 due to interest earned. Total increase in cash balances $411,714. I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. JoIn M. Falconer Fi nce Director/Treasurer Dat 2 U C (D Q C m E o ul) CA m M M r T U� .a o m C) rn � rn LO l�o Z LL � x fe W to � G ? O N O 1 0 0 CppOCvjr a C) Ot r y f,7! C_ > — ma' U. � c U I G1 l�0 t 6i t y Ia cm fi >a m 1 E c ad c? m � c rn ti C m Y ' W — d E 8 w CZ0 21°- c E H -0-0Z C -- m m m 8> >. C pme um, e C U.0 m p Q Q O O ' V m I e i IL 0 3 0 Xa o to o m We :e "E t.` a IS Q n V o S fi co'O0000 000 00 00000 0 (� J ,-. OCO)0�1l1 o CON NN �c�pp0 SM �t�p0p � co ONNOr �afl to1. �Lo 000 (D �pti -VON o NN 0; C�jRM ITN rr, co Cf C0 -OCM 00 r M r CO Go ci Q Go OigNOaw 0NM_O (DC mCO eC) O��COLO N r- tiNL Go '7pON w MU to NCV to�O�COCO C c m m C =�QQQQ w �pz�ZZ m cc E E E .(0 c = E c m m m mCft a o o O 0000 +�000o w IOz c z01 M� � fl-f- O1O O C1 C1 (0 0r-r- O CO O a0 M CV LO N f- C) M C7 C7 ZZ N NNNN m m 0. E O O a mQm as U C Z =°_ H t m m vo o Cl) CO o aaaa m CL 0 y y > E — g2u1N2LZL v2 c 2_ Cmmcz tE wm 19a M M aicn m a L� Nr co co,n L L� c m SCY C C U 0 0 O O O i i O O C C O Him r L. ra 7 7 vzU.wamrn c0 7 7 g��n vrn O mu.wmv) O ►- 3 32 ma� c w w c m m w E E L N N O C C 2 — — -1ggg2 2 -r-� -- 000mU ®7600K tO'ni O"22� r7gq q �k@ 2 $ « (7)mqW 00 \g0P3� oRq� . o k�cnc a --� k§� o■~■ m�co5 a ~ 2 e 'o LL 2� k Lo LL2 c LL E e k k 7§ « G) 2§ $§a $ ��D ORS c ■ >�@ C �o 2 § ® : 2' § LLu-2Eƒ 22/ \ $ © 2 Ea22 cm �% 6 $CO� S�� �J�■ c_ E r £ / ■ 22■ a vJ -10(D00a ca �0� CITY OF LA QUINTA FINANCING GRAND BALANCE SHEET 07/31/95 CITY RDA AUTHORITY TOTAL ASSETS: POOLED CASH 11.733,458.64 4,394,162.17 0.00 16,127,620.81 BOND REDEMPTION CASH 0.00 3,202.00 85,491.16 88,693.16 BOND RESERVE CASH 0.00 527,036.53 717,679.40 1,244,715.93 BOND PROJECT CASH 0.00 1,793,790.14 0.00 1,793,790.14 BOND ESCROW CASH 0.00 168,438.08 0.00 168,438.08 PETTY CASH 1,000.00 0.00 0.00 1,000.00 BANK OF THE DESERT M/M 9,618.71 0.00 0.00 9,618.71 ICMA DEFERRED COMPENSATION 279,965.79 0.00 0.00 279,965.79 CASH & INVESTMENT TOTAL 12,024,043.14 6,886,628.92 803,170.56 19,713,842.62 LAND HELD FOR RESALE 0.00 0.00 0.00 0.00 TOTAL LAND HELD FOR RESALE 0.00 0.00 0.00 0.00 ACCOUNTS RECEIVABLE 25,351.37 87,526.34 0.00 112,877.71 LOAN/NOTES RECEIVABLE 0.00 67,120.00 0.00 67,120.00 DUE FROM OTHER AGENCIES 0.00 0.00 0.00 0.00 DUE FROM OTHER GOVERNMENTS 0.00 0.00 0.00 0.00 DUE FROM OTHER FUNDS 0.00 551,038.04 0.00 551,038.04 DUE FROM RDA 6,048,957.20 0.00 0.00 6,048,957.20 NSF CHECKS RECEIVABLE 1,019.29 0.00 0.00 1,019.29 ACCRUED REVENUE 0.00 0.00 0.00 0.00 TRAVEL ADVANCES 2,081.40 0.00 0.00 2,081.40 EMPLOYEE ADVANCES 0.00 0.00 0.00 0.00 PREPAID EXPENSES 0.00 0.00 0.00 0.00 RECEIVABLE TOTAL 6,077,409.26 705,684.38 0.00 6,783,093.64 WORKER COMPENSATION DEPOSIT 0.00 0.00 0.00 0.00 RENT DEPOSITS 0.00 0.00 0.00 0.00 UTILITY DEPOSITS 75.00 0.00 0.00 75.00 MISC. DEPOSITS 2,000.00 0.00 0.00 2,000.00 DEPOSITS TOTAL 2,075.00 0.00 0.00 2,075.00 GENERAL FIXED ASSETS 17,052,098.01 5,879,910.05 0.00 22,932,008.06 AMOUNT TO BE PROVIDED FOR L/T DEBT 309,279.00 2,340,653.00 8,360,000.00 11,009,932.00 AMOUNT TO BE PROVIDED FOR L/T DEBT 0.00 69,987,537.16 0.00 69,987,537.16 TOTAL GENERAL FIXED ASSETS 17,361,377.01 78,208,100.21 8,360,000.00 103,929,477.22 TOTAL ASSETS 35,464,904.41 85,800,413.51 9.163.170.56 130,428,488.48 LIABILITY ACCOUNTS PAYABLE 0.00 0.00 0.00 0.00 DUE TO OTHER AGENCIES 27,598.38 0.00 0.00 27,598.38 DUE TO OTHER FUNDS 0.00 551,038.04 0.00 551,038.04 ACCRUED EXPENSES 40,837.22 386,764.00 0.00 427,601.22 PAYROLL LIABILITIES 808.82 0.00 0.00 808.82 STRONG MOTION INSTRUMENTS 472.50 0.00 0.00 472.50 FRINGE TOED LIZARD FEES 76,267.40 0.00 0.00 76,267.40 SUSPENSE (1,360.84) 0.00 0.00 (1,360.84) DUE TO THE CITY OF LA QUINTA 0.00 0.00 0.00 PAYABLES TOTAL 144,623.48 937,802.04 0.00 1,082,425.52 ENGINEERING TRUST DEPOSITS 32,133.34 0.00 0.00 32,133.34 SO. COAST AIR QUALITY DEPOSITS 0.00 0.00 0.00 0.00 ARTS IN PUBLIC PLACES DEPOSITS 142,554.38 0.00 0.00 142,554.38 DEVELOPER DEPOSITS 174,102.10 0.00 0.00 174,102.10 MISC. DEPOSITS 10,586.62 0.00 0.00 10,586.62 AGENCY FUND DEPOSITS 1,388,401.75 0.00 0.00 1,388,401.75 ICMA-DEFERRED COMP DEPOSITS 279,965.79 0.00 0.00 279,965.79 TOTAL DEPOSITS 2,027,743.98 0.00 0.00 2,027,743.98 DEFERRED REVENUE 0.00 0.00 0.00 0.00 OTHER LIABILITIES TOTAL 0.00 0.00 0.00 0.00 COMPENSATED ABSENCES PAYABLE 309,279.00 0.00 0.00 309,279.00 DUE TO THE CITY OF LA QUINTA 0.00 6,048,968.41 0.00 6,048,958.41 NOTE DUE TO MURPHY, DALES, LANE 0.00 0.00 0.00 0.00 DUE TO COUNTY OF RIVERSIDE 0.00 11,572,687.00 0.00 11,572,687.00 DUE TO C.V. UNIFIED SCHOOL DISTRICT 0.00 12,271,884.75 0.00 12,271,884.75 DUE TO DESERT SANDS SCHOOL DISTRICT 0.00 1,904,660.00 0.00 1,904,660.00 BONDS PAYABLE 0.00 40,530,000.00 8,360,000.00 48,890,000.00 TOTAL LONG TERM DEBT 309,279.00 72,328,190.16 8,360,000.00 80,997,469.16 TOTAL LIABILITY 2,481,646.46 73,265,992.20 8,360,000.00 84,107,638.66 EQUITY -FUND BALANCE 32,983,257.95 12,534,421.31 803,170.56 46,320,849.82 TOTAL LIABILITY & EQUITY 35,464,904.41 85,800.413.51 9,163,170.56 130.428.488.48 5 CITY OF LA QUINTA BANK RECONCILEMENT JULY 31, 1995 07/31/95 BANK STATEMENT BALANCES FIRST INTERSTATE STATE OF CALIF: LAW LAW CHECKING M/M 98-33-434 65-33-017 TOTALS CHECKING 477,501.73 M/M 383,606.28 LAIF 98-33-434 LAW 65-33-017 07/31/95 TOTAL BANK STATEMENT BALANCES LESS OUTSTANDING TRANS LESS OUTSTANDING CHECKS: ADD OUTSTANDING DEPOSITS: 07/31/95 ADJUSTED BANK STATEMENT BALANCES INT 2ND QTR 07/31/95 G/L BALANCE POOLED CASH ADJ JE'S POSTED IN AUGUST 95 477, 501.73 383,606.28 9,471, 546.48 9,471,546.48 6,801,278.27 6,801,278.27 477,501.73 383,606.28 9,471,546.48 6,801,278.27 17,133,932.76 A/P (1,107,021.68) (1,107,021.68) P/R (9,874.96) (9,874.96) 128,255.62 128,255.62 (639,394.91) 511,861.90 9,471,546.48 6,801,278.27 16,145,291.74 (657,111.85) 511,906.90 9,471,546.48 6,801,278.27 16,127,619.80 17,716.94 (45.00) 17,671.94 07/31/95 ADJUSTED G/L BAL - CASH & INVESTMENTS (639 394.91) 511,861.90 9,471,546.48 6,801,278.27 16,145,291.74 TO: La Quinta City Council FROM: John Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Reports for June 30, 1995 DATE: July 31, 1995 Attached is the Treasurer's Report for the month ending June 30, 1995. This report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. Cash and Investments: Decrease of $253,404. due to the net effect of transfers to State Pool. State Pool: ICMA: Increase of $944,316. due to interest earned for the quarter and transfers to and from the cash and investment accounts. Increase of $46,436 due to new effect of participant activity, fluctuation in market value of investments and investment earnings. Mutual Funds: Decrease of $178,654 due to the net effect of a debt service payment on the Tax Allocation Bonds 92 Series and interest earned. Total increase in cash balances $558,694. I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. i M. Falconery nce Director/Treasurer 71 31 ys' D e 7 c m U c m Q Z H m p 0 0 0 0 (7 J '}'rn }rnrn LO V) to A Q Q Q Q p�ZZZ Z -, Q Q Q C Q ZZZ LL Z V Q Q Q ul C W ZZZ Np' N O m 7 7 N Z Q Z � 7 7 � O O d 0 0 c a O O�p N VOOCl M �jC 0f<Cc COO COCOaOto d d NCN co fA aaa 3,0 go - -a- F"ccwm mmm F'c�ac (D coU) m V r U I i H A o a' U) a (n m O N CV) > m 9'T cn M cM H E m ja YwmE C? ca c m E nC) c E 7 rn c U c m (00 m Y = _ m E�LL�� �zggg� m ELL �z55)2F°- `8' 4 c m d 0 A ! o i m ' a I a 2 0 0 0 O g x a ea GGo m co 0� O m V. a at ge m p$ a° CL c a 'cpp00000 000 00 00000 0 OD (0 pp co 00 LONN Ok st 0aO0�cO0 Os `N�OO�fN tiff N M =rN�OaCCA .M.� N 0�0O � NN ITN0O10OfN W P-e Of Go WtOr,N coop OltN ��I`� N ON�O�N O mC1400 O u' 'N ooi�i ti r-r- �W 1� O) ch N N O Mp N co SON NN qwNpOj0O)N Ul) P- !� C) -0 N N .mr000Q 0azzzz co m m c m = Vi 1 m 1 a� m m cc 0 Ix a: o 0 0 0 0 0 0 0 0 �aa0a c 0Oi Z C7 Z h O-C> O 0) Of c0 0000 aO O O c7 N Ln 1A 1- m IT qT m id fv�� Z Z N N N N N N m E N 8 U cm m 88 Lj N 'ommo Z� ~ V o o in c� w Ir- o cc a CL CL c m E a O s 8 °o Zc 2 Z2f to -ce ~��~ A p tiCL 0 O m c`a m an O CII)mUUj In m C (D 3 m a �+ Nt Mfh E� L m C C U O 0 O co0 w O C C 0'0 Y ++ LL ate+ Y a �r Vs � aontm vzLLZ(L > �gm �y > m.�.� m � mi�m�n o v! C4 � CM w N � O M O co CO O O a orn 0 c o J O 7 O o m w N C 584 Itoo 00 oo ITNM�N� �n � N Mco40 as N 0 �� � o " (0 " 00 'TO000O���COOef CD N N o H '� p o of HO)CI ci c M CO 1- M M r r— 1` C" r l0 m CO CO LA Q O M N V d' V O e+f N LO � '0 CO N CO CD U) at I a I m cD U) N M 00L�M p O O a co C I fl �y C C lL 7 C LL C 7 E E LL 'D '.C'+ C � C 7 CU. +� p a 0,0 C _ �%. -0 O Cf LL. N a D c C j m � 'o C j U. cI C 7 O 3` m ii'� c "a Ea+'9 E - O E Q CM 7 �+ �a 41 m O �C�a yI- E N*a.E N cmU) Hv� d �� 3 7 C 7 «� CiC�C9UJUC15yH N ld O M O 7 vim- �_ 2 H m l0 m U�JN LL�y F- aD c O 7 m o •c Q o 2 � o ca 2 o LL 0 rn � o c aEa�� o �i O O Z O O I E d O N Cl) N 7 � O Q LO O O 7 I w C N > _ c C O `7 ca a F- U co 12 CITY OF LA QUINTA FINANCING GRAND BALANCE SHEET 06130/95 CITY RDA AUTHORITY TOTAL ASSETS: POOLED CASH 11,485,591.63 4,243,431.91 0.00 15,729,023.54 BOND REDEMPTION CASH 0.00 5,168.68 85,111.88 90,280.56 BOND RESERVE CASH 0.00 524,602.39 714,495.40 1,239,097.79 BOND PROJECT CASH 0.00 1,785,505.46 0.00 1,785,505.46 BOND ESCROW CASH 0.00 167,660.14 0.00 167,660.14 PETTY CASH 1,000.00 0.00 0.00 1,000.00 BANK OF THE DESERT M/M 9,596.57 0.00 0.00 9,596.57 ICMA DEFERRED COMPENSATION 279,965.79 0.00 0.00 279,965.79 CASH & INVESTMENT TOTAL 11,776,153.99 6,726,368.58 799,607.28 19,302,129.85 LAND HELD FOR RESALE 0.00 361,340.00 0.00 361,340.00 TOTAL LAND HELD FOR RESALE 0.00 361,340.00 0.00 361,340.00 ACCOUNTS RECEIVABLE 82,596.21 89,626.34 0.00 172,222.55 LOAN/NOTES RECEIVABLE 0.00 67,120.00 0.00 67,120.00 DUE FROM OTHER AGENCIES 0.00 0.00 0.00 0.00 DUE FROM OTHER GOVERNMENTS 0.00 0.00 0.00 0.00 DUE FROM OTHER FUNDS 0.00 551,038.04 0.00 551,038.04 DUE FROM RDA 6,048,957.20 0.00 0.00 6,048,957.20 NSF CHECKS RECEIVABLE 520.84 0.00 0.00 520.84 ACCRUED REVENUE 539,324.49 597.74 0.00 539,922.23 TRAVEL ADVANCES 1,415.00 0.00 0.00 1,415.00 EMPLOYEE ADVANCES 0.00 0.00 0.00 0.00 PREPAID EXPENSES 49,277.25 0.00 0.00 49,277.25 RECEIVABLE TOTAL 6,722,090.99 708,382.12 0.00 7,430,473.11 WORKER COMPENSATION DEPOSIT 0.00 0.00 0.00 0.00 RENT DEPOSITS 0.00 0.00 0.00 0.00 UTILITY DEPOSITS 75.00 0.00 0.00 75.00 MISC. DEPOSITS 2,000.00 0.00 0.00 2,000.00 DEPOSITS TOTAL 2,075.00 0.00 0.00 2,075.00 GENERAL FIXED ASSETS 17,052,098.01 5,879,910.05 0.00 22,932,008.06 AMOUNT TO BE PROVIDED FOR LIT DEBT 309,279.00 2,340,653.00 8,360,000.00 11,009,932.00 AMOUNT TO BE PROVIDED FOR LIT DEBT 0.00 69,987,537.16 0.00 69,987,537.16 TOTAL GENERAL FIXED ASSETS 17,361,377.01 78,208,100.21 8,360,000.00 103,929,477.22 TOTAL ASSETS 35,861,696.99 86,004,190.91 9,159. 007.28 131,025,495.18 LIABILITY ACCOUNTS PAYABLE 415,506.34 14,132.33 0.00 429,638.67 DUE TO OTHER AGENCIES 27,598.38 0.00 0.00 27,598.38 DUE TO OTHER FUNDS 0.00 551,038.04 0.00 551,038.04 ACCRUED EXPENSES 107,163.47 721,065.96 0.00 828,229.43 PAYROLL LIABILITIES 20,168.14 0.00 0.00 20,168.14 STRONG MOTION INSTRUMENTS 0.00 0.00 0.00 0.00 FRINGE TOED LIZARD FEES 76,267.40 0.00 0.00 76.267.40 SUSPENSE (1,360.84) 0.00 0.00 (1,360.84) DUE TO THE CITY OF LA QUINTA 0.00 0.00 0.00 PAYABLES TOTAL 645,342.89 1,286,236.33 0.00 1,931,579.22 ENGINEERING TRUST DEPOSITS 29,523.34 0.00 0.00 29,523.34 SO. COAST AIR QUALITY DEPOSITS 0.00 0.00 0.00 0.00 ARTS IN PUBLIC PLACES DEPOSITS 138,739.87 0.00 0.00 138,739.87 DEVELOPER DEPOSITS 149,102.10 0.00 0.00 149,102.10 MISC. DEPOSITS 9,786.62 0.00 0.00 9,786.62 AGENCY FUND DEPOSITS 1,341,953.68 0.00 0.00 1,341.953.68 ICMA-DEFERRED COMP DEPOSITS 279,965.79 0.00 0.00 279,965.79 TOTAL DEPOSITS 1,949,071.40 0.00 0.00 1,949,071.40 DEFERRED REVENUE 0.00 0.00 0.00 0.00 OTHER LIABILITIES TOTAL 0.00 0.00 0.00 0.00 COMPENSATED ABSENCES PAYABLE 309,279.00 0.00 0.00 309,279.00 DUE TO THE CITY OF LA QUINTA 0.00 6,048,958.41 0.00 6,048,958.41 NOTE DUE TO MURPHY, DALES, LANE 0.00 0.00 0.00 0.00 DUE TO COUNTY OF RIVERSIDE 0.00 11,572,687.00 0.00 11,572,687.00 DUE TO C.V. UNIFIED SCHOOL DISTRICT 0.00 12,271,884.75 0.00 12,271,884.75 DUE TO DESERT SANDS SCHOOL DISTRICT 0.00 1,904,660.00 0.00 1,904,660.00 BONDS PAYABLE 0.00 40,530,000.00 8,360,000.00 48,890,000.00 TOTAL LONG TERM DEBT 309,279.00 72,328,190.16 8,360,000.00 80,997,469.16 TOTAL LIABILITY 2,903,693.29 73,614,426.49 8,360,000.00 84,878,119.78 EQUITY -FUND BALANCE 32,958,003.70 12,389,764.42 799,607.28 46,147,375.40 TOTAL LIABILITY & EQUITY 35,861,696.99 86.004. 990.91 9,159,607.28 131.025.495.18 10 CITY OF LA QUINTA BANK RECONCILEMENT JUNE 30, 1995 06/30/95 BANK STATEMENT BALANCES FIRST INTERSTATE STATE OF CALIF: LAW LAIF CHECKING M/M 98-33-434 65-33-017 CHECKING 380,898.81 M/M 82,445.93 TOTALS 380,898.81 82,445.93 LAIF 98-33-434 9,086,640.35 9,086,640.35 LAW 65-33-017 6,691,868.31 6,691,868.31 06/30/95 TOTAL BANK STATEMENT BALANCES 380,898.81 82,445.93 9,086,640.35 6,691,868.31 16,24.1,853.40 LESS OUTSTANDING TRANS LESS OUTSTANDING CHECKS: A/P (656,662.68) (656,662.68) P/R (56,052.08) (56,052.08) ADD OUTSTANDING DEPOSITS: 5,492.18 5,492.18 06/30/95 ADJUSTED BANK STATEMENT BALANCES ___.Q26 323.T _ 82, .93_ _9,086 640.35_ 6,691,868.31 _15,534,630.82_ INT 2ND QTR 84,906.13 109,409.93 06/30/95 G/L BALANCE POOLED CASH (326,247.12) 82,445.93 9,171,546.48 6,801,278.24 15,729,023.53 ADJ JE'S POSTED IN JULY 95 (76.27) (76.27) 0.00 05/31/95 ADJUSTED G/L BAL - CASH & INVESTMENTS _.�326�323.39)_. _ 82,445.93 9,171 W. 6,801 278.24 15 728�947.26 11 T ft 0 4t!t 4 4 Qum& VIENT ADVISORY BOARD MEETING: July 12, 1995 BUSINESS ITEM: B ITEM TITLE Continued Consideration of LAIF Investments ISSUE AND DISCUSSION: Attached find the following information for your review: 1. LAIF Contract (INCLUDED IN JULY 12, 1995 PACKET) 2. Investment Report furnished by Tom Lewis (INCLUDED IN JULY 12, 1995 PACKET) 3. Coachella Valley Treasurers Reports (INCLUDED IN JULY 12, 1995 PACKET) 4. LAIF Earnings Rate and Balances for FY 94/95 (INCLUDED IN JULY 12, 1995 PACKET) 5. LAIF Investment Policies (INCLUDED IN JULY 12, 1995 PACKET) 6. Diversification of Investments 7. Mutual Funds for submission to the Investment Advisory Board: 9� JMn M. Falcone: Finhnce Director T 0 4hf 4 4Q�.rw BUSINESS SESSION ITEM B -1 TO: Members of the Investment Advisory Board FROM: John Falconer, Finance Director DATE: July 6, 1995 The attached resolutions established the City and RDA Local Area Investment Fund (LAIF) Accounts. This is the only legal notice the State Treasurer required the City and RDA to prepare in order to open a LAIF account. K .00, `°(� '��1► •C9 �. ter•/ .:._'� .y of BUSINESS SESSION ITEM B - 2 TO: Members of the Investment Advisory Board FROM: John Falconer, Finance Director DATE: July 7, 1995 t :14111L7-1 l I I i = • • 1 It - 7717oWINIF= . Tom Lewis provided staff with a copy of his banks investment report. Staff has modified the report that is presented in your packet by deleting the type of investments and amounts that the bank holds. 3 Qum& MEMORANDUM BUSINESS SESSION ITEM B - 3 TO: Members of the Investment Advisory Board FROM: John Falconer, Finance Director DATE: July 6, 1995 Attached please find copies of the Treasurers reports from all the Coachella Valley Cities except the City of Coachella, which did not respond. 4 T a 0 4hf 4 Qgmro MEMORANDUM BUSINESS SESSION ITEM B - 4 TO: Members of the Investment Advisory Board FROM: John Falconer, Finance Director DATE: July 6, 1995 Attached please find the LAIF earnings rate and lowest, highest and ending balances for FY 94/95. 5 MEMORANDUM BUSINESS SESSION ITEM B - s TO: Tom Genovese, City Manager FROM: John Falconer, Director of Finance DATE: July 7, 1995 •• 1 � L = it j • i � � • �--� ' =--� = - � � � �1 � - � `�ssir`-rr� The Investment Advisory Board (IAB) asked me to address the following items as they relate to our investment with LAIF: The Council Resolutions for establishing the City and Redevelopment Agency Accounts serve as our contract between the City and LAIR I have attached the resolutions that the City Council adopted to the IAB July Agenda. Ms. Beal sent the City a binder from a recent conference on LAIF Policies and Procedures which has been included in the IAB agenda. 2. What is the pool? The pool currently consists of $27 billion. Each year 1.4 billion in earnings are generated from the pooled investments. $10 billion is kept liquid at all times to meet withdrawal requests. 32% of the pool funds come from local agencies, 47% comes from various State of California agencies, 21 % consists of State of California General Fund monies. Losses are allocated from earnings and not principal based upon the percentage invested by each member, City, Special District, State Department, State General Fund, etc. 3. Who audits the pool? The State Auditors Office audits the pool as opposed to a Certified Public Accounting firm. cc: Investment Advisory Board July 1995 agenda with attachments �c Lam c��% • � - a OF Business Session Item B-6 TO: Investment Advisory Board Members FROM: John Falconer, Finance Director DATE: September 13, 1995 SUBJECT: Diversification of Investments Background At the June and July Board meeting members were asked and staff directed to make recommendations on diversification of the City's investment portfolio. The central issue being the LAIF balances in the City and RDA account represent 81 % of the total investments. Recommendation Type of Investments With safety being the primary consideration my only recommendation at this time would be to buy and hold US Treasury's to maturity. Time Frame Not to exceed one year. Amount Between $1 to $2 million dollars at this time. Further analysis would be necessary pending the outcome of the cash flow teams review of anticipated revenues, anticipated expenditures and current fund balances. (See Items of Interest Staff Report) 7 z ilk/ c� > FM .o �r^ice Cry OF INVESTMENT ADVISORY BOARD MEETING: September 13, 1995 Business Item: B-7 ITEM TITLE Mutual Funds ISSUE AND DISCUSSION: Staff has researched mutual funds that may be suitable for investment of public funds. By law, governmental entities are limited to the types of a money market mutual funds that they can invest in. They can only invest in those funds that maintain Triple A by at least two of the three rating agencies. The following documentation will be available for your review at the meeting. The documentation was not photocopied due to its volume at this time. Staff will ultimately provide photocopying of any information that the Board believes is necessary. Staff has contacted the following funds: FGIC Public Trust Vanguard Fidelity Investments T. Rowe Price AIM Staff is not prepared to make a recommendation as to a specific fund at this time until the Investment Advisory Board has had the opportunity to review the documentation and provide their comments. n CV MEMORANDUM TO: Members of the Investment Advisory Board FROM: John Falconer, Director of Finance J DATE: August 28, 1995 RE: Discussions with Finance Directors about Mutual Funds and LAIF 1. Dale Nielsen, Finance Manager City of Vista Attached please find a newspaper article regarding an investment in a mutual fund by the City of Vista. These are listed as common stock on the NYSE. The City has lost $900,000 in FY 93/94, $1.3 million in FY 94/95 and $750,000 in FY 95/96. The problem with these funds were that their was no fixed maturity date. The City has an account with LAIF with balances of between 5 and 10 million. 2. Tom Kannarr. City of Palm Springs Finance Director and Treasurer The City of Palm Springs recently purchased $1,000,000 in mutual funds from FGIC after analyzing several mutual funds. This was for portfolio diversification. In terms of LAIF, it would take a catastrophic event of national proportions to impact LAIF. It is so large and their portfolio is pretty safe that he placed the risk of loss slightly below Treasury Bonds. 3. Paul Gibson. Citv of Palm Desert, Finance Director and Treasurer The City of Palm Desert does not have any direct investments in mutual funds. The Investment Board has not approved these investments because they are not comfortable with not knowing the investment advisor/fund manager who is responsible for the portfolio. In terms of LAIF, they are comfortable with LAIF. It is a large portfolio. In the past they have, however, invested in junk bonds that when sold did result in a loss in interest but not in principal. They have become more willing to provide investment information then in the past and do now provide a listing of investments upon request. stop bl.eedin. .9 Council le.. ftky'mbtu'als 11Y Pfie LM #.off �Nriter. T� sale of dwm. bad jumt= merits for a MOM loss now Will GCSWP the- bleedin of Vistas portfolio. in the 'L dedded aidiar. 1009 teXT36 I City Council members voted in favor of a recommendation by the ci W-s. invest- ment Advisory C4mmitbee to selt three of the. yortfi)1io!s riskiest. nuxtual-fund instru. meats deqite.ta1d:n awajorbits . Denwis Yacobozz4 president of United American Capital Corp., told city OfHcWs that with the We Of the Hyperion 1997' Hyperion 2005 and Target Term Trust' 2002, the worst is over. "This is clearly the biggest hurdle in. the- restructuring process (of the city's portfolio);' said Yacobomd, the consultant hired by the city to. oversee its portfolio:, Its sales. will drain anothir $520,000 'fi= the city's budget, bringing the - total 9fteml - fund tossvm bad mvestments-to Am $Llmiffiom ne ciq�&curnntbud- Malready reflects a, more thiin'$rlm000. ftonx. failed investaxam :X=- of the raw generallund lowcan-;c -, 7 '1P*tm%d0L-,1U0 by. more -than vek&.' fees and city, qMk1- m&. acqnxbn 'to AssistAnt, City Manager Riti'GdderL Offidab will have to look at''trimmU about $70,tW &= the budget "Heel ibisis-Probably120t, an unreason- able amount to achieve," said Geldert. When asked if layoffs could result, she. said, "At this point I don't Mime sow By safely reinvesting the $3 mfflion that. twill.be reCOUPed when the three mutW, funds am sola — into U.S. Tzeamu7 and Federal Agency securities — it will take the city about four years to regain what It has lost an the investments. No "struW buyers have made off= for the Hyperion and Tarpt,Term r= in. . 0 M U S tual, )Pfrrom Page A -I," vestments yet, said Yaco'bo2zi. "Eventually we'll 'get it done;" he said.. Recently,, the city whittled -its Paper losses down from $2 million to about $134WM6a. Ne=ly*6S scent 6f the, Cuarealized.losses involve =, funds,. which -are illegal under- state and city investme=7 guide-. lines. About- 28 percent- or $14 mil- lion of the dtYs'$52 million port- folio is not in conipliance with pity and state codes. L­Me city can 'exp-ea to lose an-- other $200,000 to $300,000 from future sales of risky. mutual �_& Yacobozzi said. Since, May, the city has'sold 14 instruments for a loss of $21,871, offset by. gains of $14,272. These investments also did: not comply, with city investment. 1puidelines. A class-action suit was filed i lastiiff - New York �.. November against the Hyperion -Trust com-- pavychwzing. that the company did not properly disdose the risks for investing in levimged mawal. .4unds. Vista. could benefit from dam- ages awarded in the case, accord- ing to. City - Attom'ey Wayue Der- netz, although the. Hyperion com- ff7)uld argue against the city egg the instruments, claim- ing they may have -improved lat- er. 10 La `L•c Z QUM& 44 fit• 1 ,y of rNV' Continued from INVESTMENT ADVISORY BOARD MEETING: July 12, 1995 BUSINESS SESSION ITEM C. Continued Consideration of the Investment Policy See Attached Investment Policy. Approved for submission to the. Investment I NVE S TI NT POL I CY PURPOSE: riscal Policy No. 3.1 Primary objective of the Investment Policy is to ensure the preservation of public funds by providing guidance to management in administering the City's cash management program. SECTION I. POLICY Areas covered by this policy include: II. Scope of Financial Funds to be Invested III. Investment Policy Objectives IV. Delegation of Authority for Investment Decisions V. Conflict of Interest VI. Investment Prudence VII. Investment Instruments in which the City may Invest, Diversification of the Investment Portfolio, and Minimum Maturity Portfolio Schedules VIII. Management of Joint Resources and Distribution of Interest Earnings IX. Financial Institutions in which the City may Invest X. Investment Strategy and Results Monitoring XI. Provisions for Interim and Annual Reporting Cash management objectives shall be developed within the constraints of this policy statement. Cash Management Objectives shall include: A. A Total Percentage of Invested Cash. The City intends to have 100% of available City funds invested. B. Percentage of Return (Yield). A target yield should be stated as a goal. C. Total Dollar Return Goal. Combines the objectives of percentage of cash available and the percentage of yield to obtain a total dollar return goal. FMWC8 DD:PCLTCXM/INVM 11W OM BY: C=Y CWWIL 1 Angmt Z, 1994 = N'VE S TI�� NT POL = CY Fiscal Policy No. 3.1 SECTION II. Scope This investment policy applies to all financial funds of the City of La Quinta, La Quinta Redevelopment Agency and La Quinta Financing Authority (hereby referred to as the "City"). These funds are accounted for in the City's comprehensive Annual Financial Report and currently include the: Operating Funds: General Fund La Quinta Financing JPA - Operation Fund La Quinta Financing JPA - Debt Service Fund Redevelopment Agency, P.A. #1 Debt Service Fund Redevelopment Agency, P.A. #2 Debt Service Fund Special Revenue Funds: Gas Tax Fund Community Service Projects Community Development Block Grant Fund Lighting and Landscape Special Assessment District 89-1 Fund Quimby fund Infrastructure Fee Fund Village Parking Fund Capital Improvement Project Fund South Coast Air Quality Fund Redevelopment Agency, P.A. #1 Low and Moderate Income Housing Fund Redevelopment Agency, P.A. #2 Low and Moderate Income Housing Fund Trust and Agency Funds: Arts in I.C.M.A. Special Special Special Special Special 7I1UNCB DD:POLICIBS/IN M Public Places Fund Deferred Compensation Fund Assessment District 88-1 Fund Assessment District 89-2 Fund Assessment District 90-1 Fund Assessment District 91-1 Fund Assessment District 92-1 Fund 2 LPPROYM BY: CITY COUNCIL AW=t 2, 1994 =NVESTP00NT POL=CY Fiscal Policy No. 3.1 Monies held by the California Board of Equalization and Riverside County Treasurer for the City or Redevelopment Agency during tax collection periods shall be governed by the State of California and Riverside County investment policies and are not subject to the provisions of this policy. Investments made with state or county governmental investment pools shall only be allowed where pool investments are consistent with the City's investment policy. The City's investment policy shall also govern Bond proceeds and Bond reserve fund investments. California Government Code Section 5922(d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's investment policy. SECTION III. Investment Policy Objectives The foremost objective of the City is to ensure the preservation of principal. Each investment transaction shall first seek to ensure capital losses are avoided, whether they- are from default of securities or erosion of market value. The City, as a secondary objective, seeks . to attain yields that are consistent with appropriate prevailing indices. Market rate objectives must be consistent with constraints imposed by the primary objective of the safety of principal, internal cash flow considerations and any City of La Quinta ordinance, restricting the placement of public monies. The intent of any investment purchase As to hold it to maturity. Speculative trading is -not permitted. Speculative trading are those attempting to gain market premium appreciation through short term market volatility resulting in increased risk and loss exposure to the City. In addition the City, as a prudent practice, will periodically (every 3 - 4 years) conduct a bid process for banking and/or custodian services. SECTION IV. Delegation of Authority Management responsibility for the investment program is held by the City Manager and appointed designees. No employee may engage in an investment transaction except as provided under the terms of this FUMCs nD:pa L'M/Invest AIPFOM sir: C= CMWn 3 A=jmt Z, 1"4 = NVE S T1��IE NT POL = CY Fiscal Policy No. 3.1 policy and any procedures which may be established by the City. The City Manager or designees shall approve investments made through current market documentation. It shall be the duty of the Finance Director to manage the day-to- day operations of the portfolio and place actual purchase/sell orders with institutions. In the absence of the Finance Director, the City Clerk shall assume these duties. In the absence of the City Clerk and Finance Director, the City Manager shall assume these duties. SECTION V. Conflict of Interest The investment responsibility carries with it the added duties of insuring that investments placed are done so without the appearance of improper influence. The City Clerk is involved in the investment function shall adhere to the State's Code of Economic Interest and to the following: 1. All persons authorized to place or approve investments shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Such accounts shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. 2. All persons authorized to place or approve investments shall report to the City Clerk kinship relations with principal employees of firms with which the City places investments. SECTION VI. Prudence Investments shall be made with reasonable financial judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the primary objective of safety of principal as well as IrMUM DD:PCLTCIW/INMW 4 Appyam IM: CITY Cmwn angmt 2, 1"4 = NVE S TM:: NT POLICY Fiscal Policy No. 3.1 the secondary objective of the obtainment of market rates of return. The Administrative Services Personnel involved in the investment function shall adhere to the following: 1. Return on Investment: The investment portfolio of the City of La Quinta shall be designed to attain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraint and the cash flow characteristics of the portfolio. 2. Maintaining the Public Trust: All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City of La Quintas' ability to govern effectively. Investment officers acting in accordance with written procedures and exercising due prudence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectation are reported in an timely fashion, and appropriate action is taken to control adverse developments. SECTION VII. Investment Instruments As a unit of local government in the State of California the City of La Quinta is restricting itself to the investments authorized by Government code, Sections 53600 through 53635: 1. Savings accounts and other time accounts of commercial banks or savings and loans commercial banks insured by the Federal Deposit Insurance Corporation. 2. Certificate of Deposits of Commercial Banks or Savings and Loans insured by the Federal Deposit Insurance Corporation. Certificate of Deposit' purchases are limited to $99,000 with interest earnings paid monthly to the City to ensure F.D.I.C. $100,000 insurance coverage. 3. Treasury Bills, Treasury Notes, Treasury bonds and snmca DD:PMrCMW/M= APATXW= sir: CMM c MMXL 5 AW=t s, 1994 = NVE S Tl� NT POL = CY Fiscal Policy No. 3.1 Federal agencies' securities which are guaranteed by the full faith and credit of the United States of America. U.S. Government or securities, such as Federal National Mortgage Association Securities, which are not backed by the full faith and credit of the United States, are also permitted investments. All securities must be purchased on a full delivery vs. payment basis where the securities are delivered at the time the City releases funds for their purchase. Each Investment Purchase is limited to a maximum amount of $1,000,000. 4. Local Agency Investment Fund (L.A.I.F.) Pool The City may participate in a California Investment Pool or other similar local government pools organized in conformity with Part 53654 or Article 1 of Title 5, which provides specific authority for pooling of local government funds. Each L.A.I.F. account is restricted to a maximum investable limit of $15,000,000. 5. Money Market funds or short intermediate term bond funds investing in U.S. Agency Securities maintaining a par value per share. In addition, the City may participate in repurchase agreements provided the securities for the agreement are included in 1 through 5 above. As a matter of policy, the City must take delivery of the securities purchased through a repurchase agreement or have required collateralized securities in a restricted account located at the Federal Reserve Bank *if the terms of the agreement is greater than 14 days. Repurchase agreements with terms less than 14 days shall be held in safekeeping by a banker or broker in a designated trust department. Repurchase agreements involving non -deliverable securities shall only be held by the Federal Reserve Bank or by another commercial banking institution's trust department which is not owned or controlled by the borrowing institution. Pledged securities under repurchase agreements must be based on market value, not face value. Repurchase agreements involving pooled collateral shall be avoided. Repurchase agreements shall only be purchased from :awns an:Pm /INVWT arrlaam Bz: C=r COMIM 6 aug.t 2, 1994 = NVE S T1VZE NT 1P4=PL I CY Fiscal Policy No. 3.1 banking institutions or primary brokerage firms. Any repurchase agreement exceeding three days shall be transacted on a full delivery vs payment basis. Investment Agreements may be used as an investment option for insured bond proceeds and/or reserve funds. Investment Agreements are not to be confused with Money Managers who are contracted to manage a pre -determined amount of funds for the City. A bid process must be administered by the City or its designee in determining the selected institution. The informal bid process, used for both construction and reserve fund proceeds must have a minimum of three responses to meet the City's selection criteria. Bond indenture provisions govern the use of investment agreements which are also subjected to further approval by a bond insurance firm if the debt issue has been insured. It is the general policy of the City to concentrate its investment efforts in, but not to be limited to, U.S. Treasury obligations, Certificates of Deposit and Money Market Accounts issued by financial institutions located in the State of California. Investments will be selected on the following basis: 1. The institution offering the investment must meet all the criteria as stated in the "Financial Institutions", Section IX of this policy statement. 2. The duration of the investment must coincide with cash requirements determined by the Finance Director of the City to meet short term or long term needs. 3. The rate of interest on the investment must be at least equivalent to the average rate of return available in the market place. BID PROCESS Certificate of Deposit investments in the amount of $100,000 or less shall have a yield analysis performed in comparing the selected investment to others similar in nature. FMUM W:Paa.=c=aa/=wear APPYOM Ir: C=T COM L 7 August s, 1"4 = NVE S'T`M� NT POL = CY Fiscal Policy No. 3.1 U.S. Treasury and Agency investments shall use a formal bidding procedure where rates will be received from at least two institutions with the investment placed with the highest yielding bidder provided the institution meets the City's investment criteria. Short Term (2 years or less) U.S. Treasury -bills or notes which do not exceed $250,000 are not required to use the aforementioned bidding process due to the limited variation of yields for such instruments. However, bid comparisons are to be chosen randomly, to ensure that quality pricing is being obtained by the City on instruments not requiring a bid process. All investment securities will be held in safekeeping at the City's designated financial institution or in shares with mutual funds complying with Governmental Accounting Standards Board's requirements. Safekeeping account receipts will be held by the City's Finance Department. It is the responsibility of the Finance Director to demonstrate compliance with this section. PORTFOLIO DIVERSIFICATION The City will diversify use of investment instruments to avoid incurring unreasonable risks inherent in overinvesting in specific instruments, individual financial institutions or investment maturities. It shall be the duty of the Finance Director to manage a diversified City investment portfolio supported by current financial market conditions. The diversification of investment types will be in accordance with the following maximum percentage compliance limits: Investment Type Maximum $ Savings/Operating Accounts 85% Certificates of Deposit 60% U.S. Government and Agency Securities 75% Government Pool 90% Money -Market and Short Intermediate Term Bond Funds 60% MATURITY SCHEDULING Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures (payroll, bond payments) as well as 7MUM DD:raasa=/XNVA r APPaovm sic: C= COMM 8 AW=t s, 1994 = NVE S T1�� NT POL = CY Fiscal Policy No. 3.1 considering sizeable blocks of anticipated revenue (sales tax, property tax). Maturities in this category shall be timed to comply with the following guidelines. MATURITY SCHEDULE PORTFOLIO TARGETS Under 12 Months Under 24 Months 75% 85% The City shall adhere to Government Code State Statutes which require each individual investment to have a maximum maturity of five years unless specific approval is authorized by City Council. SECTION VIII. Resource Management and Interest Distribution All investments will be in the name of the City of La Quinta, La Quinta Redevelopment Agency and La Quinta Financing Authority and in most cases it will be a general policy of the City to pool all available operating cash into a Treasury Cash Management investment portfolio. However, a specific investment purchased by a specific fund shall incur all earnings and expenses to that particular fund. Interest earnings from pooled funds shall be allocated to all participating funds in the following order: A. Payment of interest earnings shall be allocated to designated funds from its specific investments. B. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. C. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. D. Payment to each fund of an amount based on the average computerized daily cash balance included in the common portfolio for the earning period. 7D=Cs . nn:PM1C as/iwZBr m 9 APPFM SY: C= r CXXMXL Augmt 2, 1994 SECTION IX. =NVESTINT POL=CY Fiscal Policy No. 3.1 Financial Institutions and Dealer Authorization As stated in Section VII it is the general policy of the City to purchase Money Market accounts, U.S. Treasury and Agency Securities, certificates of deposit and other time accounts primarily from financial institutions located in the City of La Quinta and/or Riverside County. United States government securities are to be purchased through the facilities of commercial banks or a securities institution as designated by the Securities Exchange Commission (S.E.C.). The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness, who maintain an office in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 ( uniform net capital rule) . No public deposit shall be made except in a qualified public depository as established by state laws. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the treasurer with the following: • Audited financial statements • Proof of National Association of Security Dealers certification • Trading Resolution e Proof of State/Province registration * Certification of having read entity's Investment Policy e Resume of Financial Broker • Evidence of Professional Liability Insurance A current audited f inancial statement is required to be on f ile for each financial institution and broker/dealer in which the City invests. In addition, the City shall research the National Association of Security Dealer's Public Disclosure Report File to review existing reports on file for any firm and individual conducting investment related business with the City. snwrca m:M=C=/IXV= ,myovm sir: CTW oWWn 10 aug t Z, 1994 = NVE S T1�NT POLICY Fiscal Policy No. 3.1 Financial institutions will be required to meet the following criteria in order to receive City funds for investment: 1. Insurance - Public Funds shall be deposited only in financial institutions insured by the Federal Deposit Insurance Corporation. 2. Collateral - The amount of City of La Quinta deposits or investments not insured by agency of the federal government shall be 110% collateralized by securities' or 150% mortgages' market values of that amount of invested funds plus unpaid interest earnings. 3. Size - The amount of City of La Quinta deposits or investments must be collateralized or insured by an agency of the federal government. 4. Disclosure - A) Each financial institution maintaining invested funds in excess of $100,000 shall furnish corporate authorities a copy of all statements of resources and liabilities which it is required to furnish to the State banking or savings and loan commissioners as required by the California Financial Code. The City shall not invest in excess of $100,000 in banking institutions which do not disclose to the City a current listing of securities pledged for collateralization of public monies. B) Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.s. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. SECTION X. Investment Strategy and Results Monitoring Investment strategies and results shall be reviewed by the Investment Advisory Board (IAB). The City Manager will be subsequently apprised of the IAB's investment strategy. A review will be held at least quarterly to determine general strategies and to monitor results. Documented summaries of Investment meetings FDWCX na:PMTC sa/=avant APPU M BY: C=r CWWIL 11 AWnst 2, 1994 = NOTE S Tl�� NT POL = CY Fiscal Policy No. 3.1 shall be kept on file in the Finance Director's Office. Included in the review and deliberations will be topics such as: cash flow projections, potential risks, authorized depositories, rate of return, maturity structure and investment transactions. SECTION XI. ReDortina - Interim and Annual A standard treasurer's report for City Council, and the IAB and Staff shall be produced each month listing pertinent current investment portfolio information. The Finance Director will also submit a quarterly investment report to the City Manager for distribution to the City Council, providing investment information regarding the City's investment portfolio's financial position. The effective date of this policy shall be the day of 19 . Fn=CB DDOMICIU/INVEST APPFDM BY: C=r CWWM 12 llugmt 2, 1994 p2 V OF TNti INVESTMENT ADVISORY BOARD MEETING: September 13, 1995 INFORMATIONAL ITEM: A ITEM TITLE Percentages of Investments ISSUE AND DISCUSSION: The attached is a listing of the types of investment and percentages for FY 1994/95. For the year, there were no instances where the investments exceeded the maximum allowable percentages. RECOMMENDATION: Review, receive and file. for submission to„ the Investment Advisory Board: o M. Falconer Fin ce Director O 0— 00 ° g m3Q'ed���QQ o m ao,��-vvvr N � Q C-4 q-8 M p CD v - Cu) Ciao L ALf)A _C gNOR E�C7 to � ��ODNco8 ao�,°r°8 M 08 ap OD _06 LQ_ LC) N a � co 8 p M cc)^ C-4 Cr) j' c0 L � Ean00� m °'�v'�M8 1 a � 3 Q g Oj Ld � N co 8 SR 0 CL p�� c°� cv' N �0)8 QCD C%4 0 � N'.R C7 c0CD U 8 o 8 8c d p Npp ~ O 14 �O O jR VW�pCO co Lo �01`8S8 C)M O 8 LONM jCD ' to v� NNNC6L L AN R pp 8 N (�( L8 a q g � O co N� O C6 co co c����p� 8 LO U)O �Oi 2 co o 8COCO ,- c6 LQ C%4 r. dvv0i'O �8 tivpN�co CNmco0 M :31'- <C) �N L) 4) a- n Gi c r)m 0N0� � � O 46 - 5 C Cf) 0) MC6 p 1,� m C - � E C 8 7 a.0 Asa " M� csa NR < 1-UtV�F�- 1-UcoV�H O� OZ 44 `y OF TNti INVESTMENT ADVISORY BOARD MEETING: September 13, 1995 INFORMATIONAL ITEM: B ITEM TITLE LAIF Primary Dealers and Direct Issuers ISSUE AND DISCUSSION: The following is a listing of LAIF Primary Dealers and Direct Issuers. This information was provided by LAIF. RECOMMENDATION: Review, receive and file. Approved for submission to the Investment Advisory oard- Jo M. Falconer F. ance Director SECURITIES DEALERS and DIRECT ISSUERS AS OF 819195 COMPANY NAME STATUS American Express ACTIVE Artemis Capital Group ACTIVE Associates Corp of N.A. ACTIVE Aubrey Langston ACTIVE B A Securities ACTIVE B T securities ACTIVE Bank of California ACTIVE Bank of Montreal ACTIVE Bank of Nova Scotia ACTIVE Bank of Tokyo LTD ACTIVE Bear Stearns ACTIVE Canadian Imperial Bank ACTIVE Cantor Fitzgerald ACTIVE Cartwright & Goodwin ACTIVE Chapman Co.,The ACTIVE Chase Securities ACTIVE Chemical Securities ACTIVE Chevron Oil Finance Co. ACTIVE Chrysler Financial ACTIVE CIT Group Holdings ACTIVE Citicorp Securities ACTIVE Coast Partners Securities ACTIVE Commerce Securities ACTIVE Commercial Credit Corp ACTIVE ConAgra Inc. ACTIVE Dean Witter, Discover & Co. ACTIVE Deutsche Bank ACTIVE Diawa Securities ACTIVE Dillon Read & Co. ACTIVE Donaldson Lufkin & Jenrette ACTIVE Federal Home Loan Bk, S.F. ACTIVE First Boston Corp. ACTIVE First Chicago Capital Mrkts ACTIVE First National Bank of Boston ACTIVE Ford Motor Credit Corp ACTIVE Fuji Securities ACTIVE Gardner Rich & Co. ACTIVE Garvin Guybutler ACTIVE General Electric Credit Corp ACTIVE General Motors Accetp Cor ACTIVE Golden Gate Securities ACTIVE Golden West Financial Corp. ACTIVE Goldman Sachs & Co. ACTIVE Govt. Sec Corp.of Texas ACTIVE Great Western Bank ACTIVE Grigsby Brandford & Co. ACTIVE Gruntal & Co. (GMS) ACTIVE Guzman & Co. 1ACTIVE RECEIVED AN 2310 =1NANCE DEPil Page 1 SD8-102.XLS SECURITIES DEALERS and DIRECT ISSUERS AS OF 819195 COMPANY NAME STATUS Harris, Nesbitt,Thompson ACTIVE Heller Financial ACTIVE Hertz Corp (Ford) ACTIVE Household Finance Co ACTIVE HSBC ACTIVE IBJ ACTIVE IBM Credit Corp ACTIVE Imperial Securities Corp. ACTIVE ITT Financial (now ITT Corp) ACTIVE JP Morgan Securities ACTIVE Keefe, Bruyette & Woods ACTIVE Kemper Capital Markets ACTIVE Lehman Brothers ACTIVE Liberty Capital Markets ACTIVE LP Charles & Goings ACTIVE M R Beal & Co. ACTIVE McDonald & Co. Securities ACTIVE Mellon Bank ACTIVE Meridian Capital Markets ACTIVE Merrill Lynch Cap. Mkt. ACTIVE Mitsubishi Bank LTD ACTIVE Morgan Keegan ACTIVE Morgan Stanley ACTIVE Nationsbank Cap Mrkts ACTIVE Nomura Securities ACTIVE Paine Webber ACTIVE Prudential Bache ACTIVE Pryor, McClendon,Govan, Counts & Co. ACTIVE Redwood Securities Group ACTIVE Robert Van Securities ACTIVE Roberts & Ryan ACTIVE Salomon Brothers ACTIVE Sanwa Bank of Cal ACTIVE Sanwa BGK ACTIVE Sears Roebuck Accept Co ACTIVE Smith Barney Shearson ACTIVE Smith Mitchell ACTIVE Societe Generale ACTIVE Sumitomo Bank of Cal ACTIVE Sumitomo Bank Securities ACTIVE Sutter Securities ACTIVE U.S. Bank of Oregon ACTIVE Union Bank ACTIVE Vining Sparks ACTIVE W R Lazard ACTIVE Walton Johnson & Co. ACTIVE Yaimachi International ACTIVE [Zions FNB Capital Mrkts ACTIVE Page 2 SD8-102.XLS p� O Z gmto c�> 4 OF TNT INVESTMENT ADVISORY BOARD MEETING: September 13, 1995 Informational Item: C ITEM TITLE Authorized Personnel - LAW ISSUE AND DISCUSSION: Attached please find a list from LAIF that list the authorized personnel for the City of La Quints I requested that our auditors confirm this information independently. for submissjpn to the Investment Advisory Board: J4n M. Falcone F' ance Director 7142635520 CONRAD & ASSOC. 107 P01 RUG 31 195 15:20 'ASSOCIATES A PARTNCRSMIP IwGl1Ua1N0 1PROM-416NwIL OORPOpAr��jM# TELECOPY COVER SHEET TOSHIBA TF 251 CERTIFIED PUBLIC ACCOUNTANTS 1100 MAIN STREET. SUITE C IRVINE. CALIFORNIA 92714 (714) 474-2020 TELEPHONE - (714) 474-2020 TELECGPIER - (714) 263-5520 COMPANY • clij OF LA QU iAaIPI-L ATTENTION: I N Lt ► C E = .,,j' OH N F% LLO N e, TELEPHONE NUMBER: ) TELECOPIER NUMBER: FROM: ob YN Ifzo DATE: S)1t Y. PAGES INCLLTING COVER SHEET: SENDING OPERATOR: �t� w TREI A. tkK WOMS 1�1161HE-AGTHM)7.a If your have any problems, please contact the sending operator at 7/14) 474-2020. 7142635520 CONRAD & ASSOC. 107 P02 RUG 31 195 15:21 STATE OF CALIFORNIA MATT FOND, Tmmvror OFFICE OF THE TREASURER SACRAMENTO LOCAL AGENCY INVESTMENT FUND P.O. BOX 942809 DATE: 08/25/95 SACPJAMENTO, CA 94209-0001 AGENCY CONFIRMATION AS OF: 06/30/95 LA QUINTA REDEVELOPMENT AGENCY ACCOUNT NUMBER,: 65-33-017 FINANCE DIRECTOR P.D. BOX 1504 LA QUINTA CA 92253 UTHORZZED PERSONS: 1) JOHN M. FALCONER 2) TOM P. GENOVES QUARTER. END BALANCES FOR FY 94/95: INTEREST EARNINGS FOR FY 94/95: 1ST QUARTER ENDED 09/30: 31554,910431 1ST QUARTER ENDED 09/30: 59,946.34 2ND QUARTER ENDED 12/31: 3, 6i14, 856. 65 2ND QUARTER ENDED 12/31: 48, 800.72 3RD QUARTER ENDED 03/31: 8,73i,657.37 3RD QUARTER ENDED 03/31: 104,210.94 4TH QUARTER ENDED 06/30: 6,691,868.31 4TH QUARTER ENDED 06/30; 109,409.93 TOTAL INTEREST 322,367.93 BALANCES AS OF 06/30/95: REGULAR BALANCE : 6,691,868.31 INTEREST FOR FY 93/94 : 269,525.12 BOND PROCEED BALANCE 0.00 TOTAL BALANCE 6,691P868.31 The funds deposited in the Local. Agency.Investmen.t Fund are invested in accordance with Government Cade Sections 16430 and 16480, the stated invastment authority for the Pooled Money Investment Account. SINCE L PATRICIA A. BEAL ADMINISTRATOR LOCAL AGENCY INVESTMENT FUND (916) 653-300I ZLut I CPA V - > OF TNT Informational Item: D TO: Investment Advisory Board Members FROM: John Falconer, Finance Director DATE: September 13, 1995 SUBJECT: Items of Interest The following items were taken from the Items of Interest Memo dated September 6, 1995 that went to the City Council. • Cash Flow Update - The first meeting of the Cash Flow Update Team will be held September 6, 1995. The team will be discussing the first draft, which staff and Rosenow Spevacek, Group (RSG), have been preparing. The final cash flow update will be completed in mid -November. • Staff is currently evaluating the qualification of financial institutions and broker/dealers for investment transactions. This process is being performed in conjunction with the City Attorney. The following information will be obtained: • Audited Financial Statements • Proof of National Association of Securities • Dealers (NASD) certification, proof of State registration • Certification of having read the City investment policy • City questionnaire After this information has been obtained and evaluated, staff will select three authorized financial dealers. 5a� •c'` � z OF TNT INVESTMENT ADVISORY BOARD MEETING: September 13, 1995 Informational Item: E ITEM TITLE Meeting with LAIF Administrator October 20, 1995 ISSUE AND DISCUSSION: On October 20, 1995, Ms. Pat Beal LAIF Administrator will discuss LAIF and be available to answer any questions. This lunch -meeting will be held at the Radisson Hotel in Indian Wells and is being hosted by the California Society of Municipal Finance Officers Desert Chapter. If you are interested in attending, please contact Debbie at 777-7150 to place your reservation. for submi§piop,to the Investment Advisory Board: Jo" M. Falconer Fi ance Director La_ /l0-- •c OF TNT Informational Item: F TO: Investment Advisory Board Members FROM: John Falconer, Finance Director DATE: September 13, 1995 SUBJECT: Redevelopment Agency (RDA) Separate Checking Account Attached please find a letter from our audit partner from Conrad & Associates advising the City whether or not the Redevelopment Agency should have its own separate checking account. The letter from our auditors sets forth the reasons why a separate RDA checking account is not required or necessary. I concur with our auditors analysis. I do not believe a separate RDA checking account is warranted. M. Falconer, Finance Director �-_ �1_ • `--/ r CONRAD �SSOCIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS John M. Falconer Director of Finance City of La Quinta 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92253 Dear John: CERTIFIED PUBLIC ACCOUNTANTS JuIX 24, 1995 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92714 (714) 474-2020 RECEIVED J U L 2 6 IM5 =1NANCE DEP`' The purpose of this letter is to advise you on the issue of whether or not the Redevelopment Agency should have its own separate check account. Neither generally accepted accounting principles nor intal control principles require the use of a separate checking account for the Agency. 'The, Agency's ownership in cash is indicated in the fund accounting system maintained by the City, as required by government accounting standards. It is a common practice for redevelopment agencies, to not use a separate checking account because of the significant efficiencies 11 s t t from consolidated cash management as well as the reduced costs from not :'hawiag to process, record, and reconcile the deposits and. warrants of this additional account. Please give me a call if you have any questions. KA:dac 3207H Very truly yours, CONRA D ' & ASSOCIATES Ken Al -Imam, CPA Partmmr. EA MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE'COMPANIES PRACTICE SECTION