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2002 02 13 IABP.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 February 13, 2002 - 5:30 P.M. I CALL TO ORDER A. Pledge of Allegiance B. Roll Call (760) 777-7000 FAX (760) 777-7101 II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on January 9, 2002 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for December, 2001 VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - January 2001 B. Pooled Money Investment Board Reports - November, 2001 VII BOARD MEMBER ITEMS VIII ADJOURNMENT INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: February 13, 2002 ITFM TIT[ F- Transmittal of Treasury Report for December 31, 2001 BACKGROUND: Attached please find the Treasury Report for December 31, 2001. RECOMMENDATION: Review, Receive and File the Treasury Report for December 31, 2001. V .1 hn M. Falconer; Finance Director T4t�t 4 4 Q" MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for December 31, 2001 DATE: January 30, 2002 Attached is the Treasurer's Report -for the month ending December 31, 2001. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Dept. The following table summarizes the changes in investment types for the month: Investment Beginning Purchased Notes Sold/Matured Other Ending Change Cash $422,375 $410,959 (1) $833,334 $410,959 LAIF $17,693,521 (1,400,000) 16,293,521 (1,400,000) US Treasuries (2) $56,312,357 (110,805) 56,201,552 (110,805) US Gov't Agencies (2) $15,927,272 3,053,190 (5,956,682) (25,314) 12,998,466 (2,928,806) Commercial Paper (2) $1,995,693 2,994,674 7,743 4,998,110 3,002,417 Mutual Funds $9,107,570 108,473 1 9,216,043 108,473 Total 1101,458,788 6 567 296 7 356 682 $128 376 $100 541 026 917 762 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. the City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. 3 LO 2s Dat Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the month on US Treasury, Commercial Paper and Agency investments. �t Z Z ZZ Z Z W e i SpE LL LL m a iS i5 m `m m eo m m 'D cc �g E a m E O N N N O N o9 Of imp Q v �.55 �5 o 8 E E E E E �N$ °1 N >0' N 8 8 MNNMN O4Q, Q:a q StE E�� —VI v I 1 0: i �g e a fA f$ N vi e c7 S 8 8 8 of pp O pQ 8 8 N A 8 O fG N P7 O O O to �D of �l7 O! 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DEPOSITS 2,1DO.00 2.100.00 DEPOSITS TOTAL 2.175.00 2,175 DC GENERAL FIXED ASSETS 9.988,279,05 9,988.279.0E ACCUMULATED DEPRECIATION AMOUNT AVAILABLE TO RETIRE UT DEBT 3,395.11T03 3,395,117 03 AMOUNT TO BE PROVIDED FOR L/T DEBT 951,847.65 80,866,860.97 7,750,000.DO 89,568,708.62 TOTAL OTHER ASSETS 951,847.65 9,988,279.05 84,261,978. 00 7.750,000,00 102.952,104. 70 TOTAL ASSETS 58 287 719 35 20,711,742.00 951,847.65 70,530,D40.30 9,988,279.05 84,261,978,00 649,66286 7,750,000 00 253 111 269 21 LIABILITIES: ACCOUNTS PAYABLE 13,741.33 13.741 33 DUE TO OTHER AGENCIES 641,659.19 730.884.56 1,372,543.75 DUE TO OTHER FUNDS 273,804.01 1,987,384. 47 2,261,188 48 INTEREST ADVANCE -DUE TO CITY 11,383,537. 00 11.383.537.00 ACCRUED EXPENSES 16.468 50 16.468 50 PAYROLL LIABILITIES 5.065,41 5.06541 STRONG MOTION INSTRUMENTS 5,005.44 5,00544 FRINGE TOED LIZARD FEES 78.981.50 78.981 5('C SUSPENSE 1,101.79 1,10179 DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL 1,019.358,67 14,118,274.53 15,137,6332C ENGINEERING TRUST DEPOSITS SO. COAST AIR QUALITY DEPOSITS LORP DEPOSITS 14,499.00 14.499.0C DEVELOPER DEPOSITS 867.651.62 867,651.62 MISC. DEPOSITS 438,848,65 438,848.65 AGENCY FUND DEPOSITS 1,484,876.63 1,484,876.63 TOTAL DEPOSITS 2,791,376.90 14,499.00 2.805,875 9( DEFERRED REVENUE 387,604.00 11,378,904,00 11,766.508 OC OTHER LIABILMESTOTAL 387,604,00 11,378,904.00 11,766,508.00 COMPENSATED ABSENCES PAYABLE 373.536.65 373,536.6E DUE TO THE CITY OF LA QUINTA 578,311.00 189.725.50 768,036.5C DUE TO COUNTY OF RIVERSIDE 10,989,847.00 10,989.847.00 DUE TO C.V. UNIFIED SCHOOL DIST. 8,747,405.50 8,747,405.5C DUE TO DESERT SANDS SCHOOL DIST. BONDS PAYABLE 64,335,000.00 7,750,000.00 72,085.000.00 TOTAL LONG TERM DEBT 951,847.65 84,261,978.00 7,750,000.00 92,963,825.6E TOTAL LIABILITIES 4,198,339.57 951,847.65 25,511,677.53 84,261,978.00 7,750,DD0.00 122,673,842 7E EQUITY -FUND BALANCE 54,069,379. 77 20,711,742.00 45,018,362 77 9,988,279,05 649.662.86 130,437,426 4E TOTAL LIABILITY 3 EQUITY 58,267,719 34 20,711,742 00 951,847 65 70,530,040 30 9,988,279,05 84,261,978 00 649 662.86 7 750 000 00 253 111 269 2f 0.01 0.00 0.01 CASH 6 INVESTMENT TOTAL 100,275,034.92 PREMIUMIDISCOUNT ON INVESTMENT 265-991.3 TOTAL 100,541,026.25 {!r INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: February 13, 2002 TITLE: Month End Cash Report - January 2002 BACKGROUND: This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances,) but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. Jo n M. Falcone , Finance Director (1) O C O O W a) a) U) to 00N cr p ti O Pt r-(~o000 ti o� � O M O M ti O U) 04 - O O O p, 0 0 0 0 0 0 (V M F-0.-0 It M OOO��NOOOO0000 N �M0Q LO N �NLO U) U) V7 N In O N O N OD N O r- O p I� (o co �Y O CU E o) 0) 0) E O M N N O O O N CN — to N O CA-N�C00 U) M U) M M M M N N N p N Darn Oci rn rn rn co 0) rn (p rn O N (� (O (o (D pOp Opp 00 0 O p O0 of 0) 0) 0) O ti U�o rn rn 0 � 0 (� O O O N O O O N E O OLL O O O O p0 r4 N O = � M(Y) M M M O (O ti LL N r- M � M a O ti O N N co > M M cM L C� o? p) B O O ON�� (D �- C)O f� a) V N p (O O� O � M M (n Q)��p L~)' Ucli co O N LO (D (pD N l4 N 0p Y (C L U N 0 op N N O N L to U Q M a) C ? m U)a) N (0 cu i m " _' a) C U) 0 U � 'm' U N O 0) O U Q CIO ►-CS � ni Y ao m U m� "p v N L II _ ma E E m m� N 7) CL 0 O N N om000) 0 U (p (YYC (LU C w -0a as v a ( a) U M N (a a_ M w-,acnozo��a�-�a -p rn ti � C) M N O C) M N U7 O Ci 0 N04 0) � V7 M � U") M d' O Op o (moo M q N M m (O Z' m c N a ¢cn m wa 'Q m C O o a) a Y 0 ♦� cn m 'C 7 tM O. a) M Y C o U) '•- U a' W a' (n m C C N N a. Q O U m N O Y N N Y O O C p a) 0 E N a) N c a) M co coOCD W U) t E (U � �- U O MU N ++ D O C a) O m Q_ w a" m a) ca Y C- L a) d) U m 'U U L Y C O m -Q (C a L O H a. C a) O N f-' C N m.0 m C O C O a- U a. p O O a O p a U)p mE ow C= a) w p � N °>-0 '� -0 N m E L 'o iL E m— t U co Ia.T Vo = O '' C cc0 E mC � WUj0 OOm - E Q MGY`E p -C _U cL E puM O M U U) O � CDO a a- m m— L U) mCAa " O w L C a) U w M UU)O C fl- U V a_ m (n = a a.-C ma) a) N m Y Q O m0-0L�0 U +-m m E U)ESN C O n.a)�aCNc Y R� (v E U) (n 0C%4 E� 0 _ o o C G O E C L a) V1 N c - a=' a) n, U N co N Q O a) Q) m a. o a) a 0) co 0 (n L m E E a- E U) U (n LA N m m U) CL U 7 O > aai cm (o CY o M o mmQ E a ..� Do a rC U o- E � a)mCm O m o Oo(v a) a- L a 0 0 N UVa c CLLL F- mEoT - a. LL (n .� c 0 .c LAIF Performance Report http://www.treasurer.ca.gov/laif/performance.htm Pulp Ageldes state Treasurer Inside the state Treasurees office Local Agency Investment Fund LAW Performance Report Reporting Date: Effective Date: Quarter Yield: Daily: Year: Life: Quarter Ending 12/31/01 Apportionment Rate: Earnings Ratio: Fair Value Factor: Monthly Average For December: Corporate E L Commercial Paper 23.13% Bankers Acceptance 0.03% Tim 10.20% 01 /30/02 01 /30/02 3.07% 2.95% 3.87% 177 3.52% .00009644387381853 1.003787124 3.261 % Pooled Money Investment Account Portfolio Composition* $49.7 Billion 12131/01 Reverses Loans -0.60% Treasuries 6.01 % 10.! 7% CD'sA3N's 12.77% les b Agencies 32.42% ■ Treasuries ❑ Mortgages ® Agencies ■ CD'siBN's ❑ Time Deposits ® Bankers Acceptances ■ Repo ■ Commercial paper Corporate Bonds o Loans ■ Reverses 1 of 2 02/04/2002 1:05 PM LAIF Performance Report http://www.treasurer.ca.gov/laif/perfonnance.htrn *The PMIA portfolio does not hold any securities of PG&E or Southern California Edison. 1 Adobe PDF version of LAIF Performance. Help with Adobe Acrobat PDF. 2 of 2 02/04/2002 1:05 PM FRB: H. I 5--Selected Interested Rat ... ly Daily Update-- February 1, 2002 http://www.federalreserve.gov/Releases/H15/update/ Federal Reserve Statistical Release H.15 Selected Interest Rates (oily) Release Date: February 1, 2002 Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday through Friday on this site. H.15 DAILY UPDATE: WEB RELEASE ONLY SELECTED INTEREST RATES Yields in percent per annum Instruments SELECTED INTEREST RATES Federal funds (effective) 1 2 3 Commercial paper 3 4 5 6 Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month CDs (secondary market) 3 7 1-month 3-month 6-month Eurodollar deposits (London) 3 8 1-month 3-month 6-month Bank prime loan 2 3 9 Discount window borrowing 2 10 U.S. Government securities Treasury bills (secondary market) 3 4 4-week 3-month 6-month Treasury constant maturities 11 1-month 3-month 6-month 1-year 2-year 3-year 5-year For immediate release February 1, 2002 Mon Tue Wed Thu Jan 28 Jan 29 Jan 30 Jan 31 1.79 1.78 1.78 1.85 1.75 1.76 1.76 1.76 1.75 1.76 1.74 1.75 1.80 1.77 1.74 1.75 1.77 1.77 1.76 1.76 1.75 1.75 1.75 1.76 1.77 1.79 1.79 1.79 1.80 1.80 1.79 1.81 1.81 1.80 1.80 1.81 1.95 1.94 1.92 1.96 1.76 1.77 1.76 1.79 1.80 1.79 1.78 1.82 1.93 1.93 1.91 1.96 4.75 4.75 4.75 4.75 1.25 1.25 1.25 1.25 1.68 1.69 1.67 1.66 1.73 1.69 1.72 1.73 1.84 1.80 1.82 1.85 1.71 1.72 1.70 1.69 1.76 1.72 1.75 1.75 1.88 1.84 1.86 1.89 2.28 2.23 2.23 2.29 3.19 3.05 3.06 3.16 3.73 3.59 3.61 3.70 4.48 4.35 4.37 4.42 1 of 3 02/04/2002 1:04 PM FRB: H. 15--Selected Interested Rat ... ly Daily Update-- February 1, 2002 http://www.federalreserve.gov/Releases/H15/update/ 7-year 4.88 4.76 4.77 4.82 10-year 5.12 5.02 5.02 5.07 20-year 5.72 5.63 5.64 5.68 30-year 5.47 5.40 5.41 5.44 Interest rate swaps 12 1-year 2.52 2.49 2.44 2.49 2-year 3.59 3.51 3.43 3.47 3-year 4.93 4.24 4.15 4.17 4-year 4.77 4.71 4.63 4.65 5-year 5.10 5.04 4.97 4.98 7-year 5.49 5.44 5.37 5.38 10-year 5.80 5.77 5.71 5.71 30-year 6.16 6.15 6.11 6.11 Corporate bonds Moody's seasoned Aaa 13 6.54 6.49 6.51 6.54 Baa 7.90 7.86 7.91 7.92 State & local bonds 14 5.15 Conventional mortgages 15 FOOTNOTES 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages (http://www.federalreserve.gov/releases/cp) for more information. 6. The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page. 7. An average of dealer offering rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans. 10. Rate for the Federal Reserve Bank of New York. 11. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. 12. International Swaps and Derivatives Association (ISDA) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. by Garban Intercapital plc and published on Reuters Page ISDAFIXI. Source: Reuters Limited. 13. Moody's Aaa rates through December 6, 2001 are averages of Aaa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 14. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 15. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC. DESCRIPTION OF THE TREASURY CONSTANT MATURITY SERIES 2 of 3 02/04/2002 1:04 PM FRB: H.15--Selected Interested Rat ... ly Daily Update-- February 1, 2002 http://www.federalreserve.gov/Releases/H15/update/ Yields on Treasury securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The constant maturity yield values are read from the yield curve at fixed maturities, currently 3 and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a 10-year maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity. In estimating the 20-year constant maturity, the Treasury incorporates the prevailing market yield on an outstanding Treasury bond with approximately 20 years remaining to maturity. Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII Home I Statistical releases Accessibility To comment on this site, please fill out our feedback form. Last update: February 1, 2002 3 of 3 02/04/2002 1:04 PM FRB:Commercial Paper Rates and Outstanding http://www.federalreserve.gov/Releases/CP/ Federal Reserve Release L 0 OME=" = Release I AboutI Outstandins I Historical discount rates I Historical outstandings Data as of February 1, 2002 Commercial Paper Rates and Outstandings Derived from data supplied by The Depository Trust Company Posted February 4, 2002 Yield curve Monev market basis 1 7 15 30 days to Maturity Financial — -- Nonfinancial ••••. A2/P2 Percent 2.15 2.10 2.05 2.00 1.95 1.90 1.85 1.80 1.75 1 of 3 02/04/2002 1:04 PM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Basis points 130 140 130 120 110 100 90 80 70 60 50 40 30 20 10 01JAN03 Percent 8 7 6 S 4 2 1 01 JAN 9 8 01 JAN9 9 01 JAN00 01 JAN 01 01 JAN02 01 JAN03 Financial — — — Nonfinancial ••••• A2/P2 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars Billions of dollars Discount rate spread Thirtv-dav A2/P2 less AA nonfinancial commercial saner (dailv) 01 JAN 9 8 01,aAN 9 9 01 JAN 00 01 JAN01 01 JAN02 w. A2 ` 2- - ° �-e i — -- A2/P2 spread. 5—day moving average Discount rate history Thirtv-dav commercial paver (dailv) .ti 2 of 3 02/04/2002 1:04 PM FRB:Commercial Paper Rates and Outstanding http://www.federalreserve.gov/Releases/CP/ 12C. 11C 1 OC 010, R.) 01 JAN98 Finandal — — — Nanfinandal 360 'Z50 3.F0 520 310 300 290 250 270 260 250 240 250 220 210 The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve is closed on a business day, yields for the previous business day will appear in the historical discount rates table. This policy is subject to change at any time without notice. Commercial paper outstanding, Commercial paper outstanding, miscellaneous categories Volume Statistics 2001:Q4 Release I About I Outstanding I Historical discount rates I Historical outstandings � Home I Statistical releases Accessibility To comment on this site, please fill out our feedback form. Last update: February 4, 2002 3 of 3 02/04/2002 1:04 PM 0 0 C N C Q Cl) L J O OCD O L O a) U0co0 O C U a) O a) a) a) N ca L �••+.. O v Z Z= N N U� �Loob N LO cooM� LOt� 0G0 .O O 0)M O 0 0 0� CU 000)C�M NqtM Mco N�� 1n000Nco0 0) r- OONNtn a-LONCN O�� ti ? O 00 LO CCT C i cyi V N Q 00LO0 ti dM'NO)OLOOMO 0) �Mr- fob N�M(O4M N o00r-o0 O�ONd'Lt! M QUO O00ONN 0000ti N ui O:MN O�N 00�� mT—CMOM(00) LOLOMN- r Mr-e� w Nl�ln(D� MN t O cn cn O cn � C CD x cn L Gcu N C U O O N d x ma m<2 .LL cn CD cn a) -p CCD N 3z V O cn.L a) a) LL ' a- c ,a� �— CD Vi cnL ac a�= c CD•L D > co cn a) L �..r L a� W �a�/i N Q o C A� �I—tn0M m xxm a) cv CD W Cl) w0U❑I— p m IZ Cl) O O > > N Q-•U E- V N .cu CO) C C � Q � O N CU .0 ca N s N cu 3—+.. a) O N U L a) U +L-� V (U Off= U .L U � ca O +.' O a) � O U � N N O cn N cQ L 'a E .N (n L O a) co O O O �: 4- CD E a)cvC>L CD.CU a _ L > N cu C +�. = a) N N O ~ F•- O O C z _3 im cD h- •vn (D CD 2 co 0n N W c OW .� _ L N. � N ti 't C p co 0 I. O O Q) oM"ZMqt0Mio NOON d' Cr-��-I`r•-00MOOr. M F- Z H 4 w w 0 v w U Z ; W U a of W w> ..aOa. CD o J °� o Z 1: v QwwZ (D wU 0 B U J Z) Z :D W a. O w Z U 2 U J a Z a� Z Q 2 .—:j 5 0 1— wz-00 O0LLof ❑ C��UU�aoU�WZQ VIL = tV1II* taAAO &IOU A-197TI1 p, Meeting Date: February 13, 2002 TITLE -- Pooled Money Investment Board Report for November 2001 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for November 2001 was not available before the agenda was mailed. It is anticiapted that it will be received before the meeting and will be distributed at the meeting. RECOMMENDATION: Receive & File JohO M. Falcdner; Finance Director POOLED MONEY INVESTMENT IC��1 FORTY-FIFTH ANNUAL REPORT FISCAL YEAR 2000/2001 PHILIP ANGELIDES State Treasurer and Chairman Pooled Money Investment Board Executive Summary The Pooled Money Investment Board, created by the Legislature in 1955, is comprised of Philip Angelides, State Treasurer, as chairman; Kathleen Connell, State Controller; and B. Timothy Gage, Director of Finance. The purpose of the Board is to design an effective cash management and investment program, using all monies flowing through the Treasurer's bank accounts and keeping all available funds invested consistent with the goals of safety, liquidity and yield. The law restricts the Treasurer to investments in the following categories: U.S. government securities, securities of federally -sponsored agencies, domestic corporate bonds, interest -bearing time deposits in California banks and savings and loan associations, prime -rated commercial paper, repurchase and reverse repurchase agreements, security loans, banker's acceptances, negotiable certificates of deposit and loans to ' various bond funds. Subsequent sections of this report deal individually with the demand account and investment programs for which the Board has oversight responsibilities, and which the Treasurer directly administers. During the 2000/01 fiscal year, program earnings totaled $2.676 billion. Approximately $873 million of this amount was credited to units of local government as a result of their deposits in our investment pool. This level of voluntary participation, which averaged $14.397 billion, reflects the confidence they have in our investment management capabilities. The magnitude of these investment earnings provide a significant reduction in the tax burden that otherwise would have been imposed on the citizens of California. Chairman PHILIP ANGELIDES State Treasurer Member B. TIMOTHY GAGE Director of Finance ii Pooled Money Investment Board Members Member KATHLEEN CONNELL State Controller i Table of Contents Page OVERVIEW POOLED MONEY INVESTMENT BOARD Pooled Money Investment Board Executive Summary ........................................... i Pooled Money Investment Board Members........................................................ ii TheYear in Review............................................................................................................... 1 Investment Activity FY 1992 through 2001......................................................................... 1 2000/01 Investment Market Conditions................................................................................ 2 Pooled Money Investment Account Comparison of Average Daily Portfolio and Earnings FY 1992 through 2001............................................. 3 POOLED MONEY INVESTMENT ACCOUNT (PMIA).............................................. 4 TheYear in Review............................................................................................................... 4 DemandAccount Program..................................................................................................... 5 Rate Schedule for Banking Services..................................................................................... 6 Average Daily Balance in Demand Bank Accounts............................................................. 7 InvestmentProgram.............................................................................................................. 8 Schedule of Security Purchases - by Term............................................................................ 9 Analysisof the PMIA Portfolio............................................................................................ 9 Dollar Amount of Interest -Bearing Time Deposits...............................................................10 PMIA Summary of Investments and Earnings...................................................................... I I Financial Community Coverage.................................................................,..........................13 SURPLUS MONEY INVESTMENT FUND(SMIF).......................................................14 TheYear in Review...............................................................................................................15 Participation..........................................................................................................................15 Earningsfor 2000/01.:...........................................................................................................14 Resourcesof the SMIF..........................................................................................................16 LOCAL AGENCY INVESTMENT FUND (LAIF).........................................................17 TheYear in Review...............................................................................................................17 Participation................................................................................................ I .....................17 Earningsfor 2000/01.............................................................................................................17 Resourcesof the LAIF..........................................................................................................18 Appendix A - PMIA Summary of Investments and Earnings, 1957 through 2001 .............19 Note To PMIA Summary of Investments and Earnings ............................... 20 Appendix B -Historical PMIA Yields .... ....................................................................21-29 1 The Year In Review Average Daily Portfolio ............................... ............................•. $439840,420,719 Earnings....................................................... $29676,158,235 Effective Yield ............................................. 6.10% b�stnatAcrii►�ies 1 Facd YMSBwkgJm30 $ (Unnllian) VMMM 1 _ __ 1992 19SB 1994 19Sl5 1996 VW 1996 1999 Source: State Treasurer's Office, Division of Investment 2 2000/01 Investment Market Conditions To indicate prevailing market conditions during the 2000/01 fiscal year, the following table shows monthly money market rates, as computed from daily closing bid prices. The information was obtained from Federal Reserve Bulletins published by the Board of Governors, Federal Reserve System, and The Bureau of Public Debt. (Yield in Percent PerArmm) \ u a f R � \. \,,$'\d !�9 Y P '" '6 0.Na �� '� t 4�} �•e . f 'aE ` �f,,4�' tG P afR iaS V •1 GF" fk Nn s-n f F YNs'� k �y..,: dY'sa`mrt.(c e +k.. *.f+ q`$Ea YF� M11A dgN`,yS4d(?F # IN R n��i� Y - �A � 4 ]N 1., F�� ,A�t o I gM � a►�m a� � �ykt.�J - `>.d�x he� �,A $F \tl\ 9 _Kt , 5��$ � .,w. Ady 1 / / • / • {/ / • / '• 1 1 r • 6.00 6.47 6.60 5.986.13 1 /"/r • 6.11 // 6.01 5.85 • • • / / • 1 • / • • ecebe • I1 5.83 6.33 I 5.70 5.60 5.26 ••5.62 ,/ I • I .77 5.49 I • • , 4.69 4.68 I .71 it5.31 4.45 4.81 4.89 I 4.30 4.43 April 4.80 3.91 4.47 I 88 A 4.42 I % 4.02 3.61 • • 4.51 • 3.48 • I / / • d W° j�9 MenY d 7ad�� mp3y r .�� #� M a� ma� ,ter\� 0 I 1 1 I , • 1 / •• Note: 3 and 6 month Treasury Issues and 90 day Commercial Paper are quoted on a discount basis. 3 Pooled Money Investment Account Comparison of Earnings and Average Daily Portfolio Fiscal Years Ending June 30, 1992 through 2001 Earnings ($ In Millions) $3,000 2 676 — — -- — $2,500 1 - td 1,999 W4 $2,000 1 788 1,672 1 482 1 519 $1,500 1,3311 w' $1,000 e HFky S $500 �d F^ 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: State Treasurer's Office, Division of Investment d 4 Pooled Money Investment Account The Year In Review Source: State Treasurer's Office, Division of Investment Resources of the Pooled Money Investment Account averaged $44,260,140,719 per day during the fiscal year although the daily figures fluctuated widely with receipts and disbursements. High point for the year occurred June 27, 2001, when the total reached $57,242,259,235. Resources for the account were lowest on December 8, 2000, when balances totaled $38,807,371,213. A breakdown of an average day's resources during the fiscal year shows the following: $419.7 million in non -interest -bearing bank accounts; $39.522 billion in securities and General Fund Loans; and $4.318 billion in interest -bearing time deposits. On the closing day of the fiscal year, the following resources were on hand in the Pooled Money Investment Account: Demand bank account $ 735,639,664 Time bank account 4,865,145,000 Securities 49,627,613,483 Total Resources $55922893989147 5 Demand Account Program Investments of the PMIA are made from monies flowing through the Treasurer's demand (non -interest -bearing) bank accounts maintained in the seven banks that serve as State depositories. Currently, the seven depository banks are: Bank of America, California Bank & Trust, Union Bank of California, United California Bank, U.S. Bank, Wells Fargo Bonk and Westamerica Bank. A small portion of these funds must remain in the accounts as compensating balances which consist of (1) a balance for uncollected funds and (2) a balance for banking services. Uncollected funds represent the total dollar amount of checks deposited by the State for which the banks give immediate credit, but for which they do not receive good funds until these checks are presented to the banks on which they are drawn. The Pooled Money Investment Board allows the banks an average balance for uncollected funds equivalent to 1.3 calendar days on all checks deposited other than cashier's checks and checks under the presort of deposit system. Under the presort Qf deposit system, the major revenue collecting agencies sort their checks by the five State depository banks and then deposit them directly in the banks on which they are drawn, thus avoiding the need for providing bank balances for uncollected funds. The remaining checks are deposited under a contract whereby the depository bank receives bank balances equivalent to 1.345 calendar days for the amount of such deposits. The balances allowed for banking services represent compensation for handling 393 thousand deposits, 56.2 million checks deposited, 334 thousand dishonored checks, $694.9 million in currency deposited, $11.4 million in coin deposited, 112.1 million warrants and 29.7 thousand checks paid. All amounts in excess of these compensating balances are promptly invested by the Treasurer. Intensive and expert analysis of receipts and disbursement data is used daily to estimate the State's rapidly shifting cash position in order to determine exactly how much money is available for investment. This results in maximum earnings consistent with prudent management. I Compensating balances are determined by a formula, which accounts for the estimated volume of each service item as well as its unit cost. The rate schedule for the compensating balance formula is determined through annual negotiations with the State's depository banks and the cost for any particular service may be raised or lowered as conditions warrant. Adjustments for the difference between actual and estimated work- 6 load for any fiscal year are made in the following fiscal year. The PMIB made no changes in the rate schedule for banking services for the 2000/01 fiscal year. In addition to the rates shown below, the Board agreed to include the costs of account reconciliation and electronic funds transfer services within the compensating balance formula starting in the 1991/92 fiscal year. The costs for these two services are paid (with balances) on a lagged, actual basis when billed by each bank. The Board approved the following rate schedule for the 2000/01 fiscal year: Rate, Schedule For Banking Services 2000/01 Fiscal Year Encoded Checks Deposited "On Us ............................. .............................. $ 0.04 ►►Other .............................................. ............... 0.05 Non -Encoded checks Deposited ......................... 0.09 Wanants i KLd•................................... 0..... 0........... 0.0 1 ChecksPaid ........................................................ 0.1 Dishonored Checks .............................................. 2.75 Deposits............................................................... 1. 20 Split Bats Deposits ............................................. 0.55 Coin Deposited .............................. 0 .................... 11.001per thousand currency Deposited ............................................ 1.05 per thousand Account Maintenance .......................................... 15.00 per month Daily Statements .................................................. 6.00 per statement Source: State Treasurer's Office, Division of Cash Management 7 Average Daily Balance In Demand Bank Accounts 2000/01 ($ In Thousands) Month Bank Balance Required for Baiikin Services Bank Balance Required for Uncollected Funds Less Net Delayed Deposit Credit Bank Balance Prescribed by PMIB Actual Average Daily Bank Balance Jul-00 $178,457 $173,774 $3,912 $348,318 $340,056 Aug-00 175,858 179,760 5,585 350,033 356,490 Sep-00 159,223 238,287 7,148 390,362 407,957 Oct-00 163,084 156,970 5,882 314,173 406,499 Nov-00 172,538 194,217 7,292 359,463 360,566 Dec-00 174,833 231,566 8,913 397,486 351,634 Jan-01 161,287 252,589 11,365 402,511 494,691 Feb-01 208,955 268,696 62 477,589 344,507 Mar-01 ' 197,057 167,809 7,338 357,528 346,283 Apr-01 231,905 450,721 11,591 671,034 701,610 May-01 271,806 278,336 7,179 542,963 443,131 Jun-01 268,013 257,843 8,327 517,530 484,840 Weighted $196,698 Average $750,000 $650,000 $550,000 $450,000 $350,000 $250,000 533' V, $236,768 $7,090 $426.377 $419.720 Average Balance In Demand Bank Accounts 2000/01 ($ In Thousands) 0 Prescribed by PNHB Average Daily Source: State Treasurer's Office, Division of Cash Management VS 8 Investment Program Although the Pooled Money Investment Board designates how much shall be invested in interest -bearing time accounts in California banks and savings and loan associations, and in securities, it is the responsibility of the State Treasurer to administer the investment program on a day-to-day basis in line with overall Board policy. This entails a daily determination of amounts available for investment, or the need for liquidating securities to meet estimated warrant redemption requirements, while maintaining the approved compensating balance position. This means that the State Treasurer must continually adjust the estimates for receipts and disbursements to reflect current available information. i For the 2000/01 fiscal year, investments in time deposits ranged from $3,668,440,000 to $4,865,145,000 and averaged $4,317,935,890. There were 1,639 transactions totaling $19,680,865,000 during the year. Commercial banks, savings banks and credit unions receiving these State deposits must secure them with approved securities having a market value of at least 110 percent of the deposits or with approved promissory notes secured by mortgages or deeds of trust having a market value of at least 150 percent of the deposits. The same collateral requirements also apply to the State's demand accounts. At the end of fiscal year 2000/01, interest -bearing time deposits were held by 93 commercial banks, 17 credit unions and 14 savings banks throughout California. For the fiscal year, PMIA holdings in time deposits had an average yield of 5.82 percent. The amount of money designated by the Board for investment in securities varies dramatically throughout the year. Such designations are made at least monthly, and again, the State Treasurer handles the actual investments, determining the issue and maturity of authorized securities to be bought or sold in accordance with cash needs and both current and projected market conditions. During fiscal year 2000/01, there were 3,225 security purchase transactions and 3,025 security sales or redemption transactions, with a total investment activity of $290.5 billion. Total earnings for the Pooled Money Investment Account in fiscal year 2000/01 were $2,676,158,235. These earnings were credited as follows: General Fund $822,696,302 Fish and Game Preservation Fund $ 305,456 Surplus Money Investment Fund $974,657,023 Local Agency Investment Fund $873,410,950 Public Employee's Retirement Fund $ 2,791,247 State Teacher's Retirement Fund $ 2,297,257 Earnings consisted of $2,424,943,624 from security investments at an average 6.10 percent yield and $251,214,611 from time deposits at an average 5.82 percent yield. The overall return on investment was 6.10 percent. The portfolio holdings of the Pooled Money Investment Account for the 2000/01 fiscal year are illustrated in the following table: y Source: State Treasurer's Office, Division of Investments Source: State Treasurer's Office, Division of Investments 10 $4,900,000 $4,600,000 $4,300,000 $4,000,000 $3,700,000 Dollar Amount Of Interest -Bearing Time Deposits By Month -End Source: State Treasurer's Office, Division of Investments Sumuwy of Inveshmnts and EVVings Fiscal Years Fang June 30,1992 through 2001 ($ In Thousands) ENVEgrNIENr IN SECURnIES . Average Daily F"7)i s Fiscal Year Investment Evnino Rate % NVESIAMW IN IIM E DEPOSITS Average Daily F"7dW Fiscal Year Investment F.arni Rate °Io 1991/92 20,322,527 1,259,654 8.01 199V92 131,362 6,817 5.19 1992/93 21,499,605 1,013,606 6.20 1992193 139,146 4,977 3.58 1993/94 24,322,849 1,068,915 4.71 1993/94 107,647 3,700 3.44 1994/95 26,468,520 1,465,018 4.39 1994/95 217,522 12,218 5.62 1995/96 25,362,783 1,448,002 5.53 1995/96 351,060 19,416 5.53 1996i97 27,674,553 1,550,599 5.71 1996/97 419,648 22,376 5.33 1997/98 2.8,034,192 1,601,603 5.60 1997/98 1,076,268 57,452 5.34 1998/99 31,409,593 1,688,570 5.34 1998/99 1,928,600 93,095 4.83 1999/00 32,177,870 1,845,503 5.71 1999/00 2,820,736 152,310 5.40 2000/01 39,522,485 2,424,943 6.10 2000/01 4,317,%6 251,215 5.82 $45,000 $AOW $,OW $AOM $2-,000 $0 $15,000 $10,000 fti 9, Average Deily Inverts In Semnities ($ In MWorts) Z'00-0—� ♦q�� gq�\ga 1q��q� ♦q��b b\q^ 1q�^�� qq��a ,ggq\oo �000\o, Source: State Treasurer's Office, Division of Investments $5,000 $" $41000 U" $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 q� �q Average DmAy hneshimits In Tme Deposits ($ In NMans) �q�ry\q'\q� 12 Smmzuy of Irtvestnaetus mul Ecmungs Fiscal Yeos F.Ong June 30,1992 through 2001 ($ In Thousands) IDA M TO THE GEMMAL FUND AvmW Daily Ewdngs Fiscal Year Inpesbtwd Rate % Fiscal Year TEAL ENVESININIS Average Daily Investment Fmwings Earnings Rate °Ic 1991/92 1,002,544 63,005 6.28 1991/92 21,456,433 1,329,476 6.20 1992/93 19412,'792 66,543 4.71 1992/93 23,051,543 1,085,126 4.71 1993/94 110OZ582 43,045 4.29 1993/94 25,433,078 1,115,660 4.39 1994M 116,081 5,338 4.60 1994195 26,802,123 1,482,574 5.53 1995/96 909,353 51,602 5.67 1995/96 26,623,196 1,519,020 5.71 1996/97 1699868 9,468 5.57 1996/97 28,264,069 1,582,443 5.60 1997/98 234,052 13,327 5.69 1997/98 29,344,512 1,672,382 5.70 1998/99 lIZ895 6,099 5.40 1998/99 33,451,088 1,787,764 5.34 1999/00 30,428 1,670 5.49 1999/00 35,029,034 1,999,483 5.71 2000/01 - - - 2000/01 43,840,421 2,676,158 6.10 Sourue: State Treasurer's Office, Division of Investments. 13 Financial Community Coverage The followingfirms conducted investment transactions with the State -Treasurer's Office during the 2000-01 Fiscal Year. A.G. Edwards and Sons, Inc. American Express Credit Corp American River Bank Antelope Valley Bank Asiana Bank Associates Corp North America Banc of America Securities Banc One Capital Markets, Inc. Bank of Canton of Californih Bank of Granada Hills Bank of Montreal Bank of Nova Scotia Bank of Petaluma Bank of Sacramento Bank of Santa Clara Bank of the Sierra Bank of the West Bank of Visalia Bank United Securities Corp Bay Area Bank Bay Bank Commerce Bear Stearns and Company Inc Borrego Springs Bank Broadway Federal Bank Business Bank California California Center Bank California ChoHung Bank California Credit Union California Federal Bank California Pacific Bank CalState 9 Credit Union Camarillo Community Bank Canadian Imperial Bank of Commerce Canyon National Bank Cathay Bank Central California Bank Cerritos Valley Bank Chapman Company China Trust Bank (USA) CitiGroup Securities Citizens Business Bank City National Bank Coast Commercial Bank CommerzBank Community Bank Community Bank of Central California Community Federal Credit Union Constitution Capital Corp. County Bank Courts & Records Federal Credit Union Credit Agricole Indosuez CS/First Boston Corp Cupertino National Bank Delta National Bank Deutsche Bank Donaldson, Lufkin and Jenrette Inc East West Federal Bank Eastern International Bank EBTEL Federal Credit Union El Dorado Savings Bank Eldorado Bank EuroBrokers Inc EverTrust Bank Fahnestock and Company Farmers & Merchants Bank of Central California Federal National Mortgage Association First Bank and Trust First Bank Beverly Hills First Bank San Luis Obispo First Fidelity Investment and Loan First United Bank FNB Central California Ford Motor Credit Corp Fuji Securities Inc Fullerton Community Bank Garvin GuyButler General Bank General Electric Capital Corp General Motors Acceptance Corp Golden Gate Bank Golden One Credit Union Goldman Sachs and Company Grand National Bank Racienda Bank Hanmi Bank Hawthorne Savings Bank Heller Financial Company Heritage Bank of Commerce Household Finance Corp HSBC Securities, Inc. Imperial Bank J.P. Morgan Chase Securities La Jolla Bank Lake Community Bank Lehman Brothers Holdings, Inc. Loop Capital Markets Los Robles Bank Malaga Bank Manufacturers Bank Marathon National Bank McDonald and Company Mechanics Bank Mellon First Business Bank Mercantile National Bank Merchants National Bank Merit Capital Associates, Inc. Meriwest Credit Union Merrill Lynch Capital Markets Mesirow Financial, Inc. Metro Commerce Bank Mid Peninsula Bank Mid State Bank Millennium Bank Mission Community Bank Mission Federal Credit Union Monterey Bay Bank Morgan Keegan and Company Morgan Stanley, Dean Witter & Company National Bank of the Redwoods Neighborhood National Bank North Island Federal Credit Union North State National Bank North Valley Bank Oak Valley Community Bank Oceanic Bank Omni Bank Operating Engineers Federal Credit Union Pacific Crest Bank Pacific State Bank Pacific Union Bank Pacific Western National Bank Paribus Corporation Peninsula Bank of Commerce PFF Bank and Trust Plumas Bank Preferred Bank Provident Central Credit Union Prudential Securities Pryor, McClendon, Counts and Company Quaker City Bank Redwood Credit Union Redwood Securities Group, Inc. River City Bank Sae Han Bank SAFE Credit Union Salomon Smith Barney San Jose National Bank San Luis Trust Bank Santa Barbara Bank and Trust Santa Clara Federal Credit Union Santel Federal Credit Union Sanwa Bank California Scripps Bank Sears Roebuck Acceptance Corp Securities America, Inc. SilverGate Bank Societe Generale South Bay Bank South Western Credit Union Spear, Leeds and Kellogg State Bank of India (California) Sunwest Bank Tehama Bank TransPacific Bank Travis Credit Union Tri Counties Bank T t Bank UT Bank Union Bank of California Union Safe Deposit Bank United Commercial Bank United Security Bank US Bancorp Piper Jaffray Valencia Bank and Trust Valley Independent Bank Verdugo Banking Company Vining Sparks Warburg Dillon Read Washington Mutual Bank, FA Wells Fargo and Company WesCom Credit Union WestAmerica Bank Western Federal Credit Union Western State Bank Williams Capital Group Wilshire State Bank Xerox Federal Credit Union 14 Surplus Money Investment Fund The Surplus Money Investment Fund consists of the available cash of all special funds which do not have investment authority of their own; and all or a portion of the available cash of special funds having investment authority of their own, but which have elected to be included in the program. Cash balances in excess of needs in any of these participating funds are invested by the State Treasurer. The Pooled koney Investment Board is responsible for determining whether any cash balances of the participating funds are in excess of current needs and available for investment, or whether it is necessary to liquidate previous investments to meet current requirements. This determination is operationally performed by the State Controller's Office by means of a continuing review of the cash balances of the participating funds. As a result of these determinations, the State Controller prepares a document for the Pooled Money Investment Board's approval which authorizes the State Controller to increase or decrease the contribution balances of the applicable funds. All of the resources of the Surplus Money Investment Fund are invested through the Pooled Money Investment Account. Prior to the 1967/68 fiscal year, the Surplus Money Investment Fund was a separate investment program. In 1967, legislation was enacted (Chapter 505, Statutes 1967) which provided that money in the Surplus Money Investment Fund shall be invested through the Pooled Money Investment Account. This legislation further provided that the Surplus Money Investment Fund -would share in the interest earnings of the Pooled Money Investment Account. based on the ratio that the dollar -day contributions of the Surplus Money Investment Fund bear to the dollar -day investments of the Pooled Money Investment Account. This legislation increased the potential investment earnings for both programs, since their high and low resource periods tend to complement each other. Consequently, under normal market conditions, more long-term, higher yielding securities may be purchased. Earnings for 2000/01 Gross earnings totaled $974,657,023 for the 2000/01 fiscal year. This represents an earning rate 6.12 percent for this investment program. SMIF earnings are computed on a dollar -day basis to guarantee equitable distribution among all member funds. An apportionment of the earnings is made by the Controller twice yearly as of December 31 and June 30. 15 The Year in Review Source: State Treasurer's Office, Division of Cash Management Participation There were over one thousand special funds and accounts participating in the Surplus Money Investment Fund as of the last day of the fiscal year, June 30, 2001. Their combined deposits totaled $21,588,923,000. Large contributors as of June 30, 2001 were the: Department of Water Resources Electric Power Fund, $4,239,623,000; State Highway Fund, $1,192,124,000; California Housing Finance Fund, $916,729,000; School Facilities Fund 1998, $864,422,000; Public Buildings Construction Fund, $722,788,000; Unemployment Compensation Disability Fund, $544,085,000; California Infrastructure & Economic Development Bank Fund, $475,092,000; State Lottery Fund, $417,499,000; Special Deposit Fund, $413,947,000. 16 Monthly deposit balances are shown in the following table: Resources of the Surplus Money Investment Fund 2000/01 Fiscal Year (Month -End Balances) $21,500,000 $19,000,000 $16,500,000 $14,000,000 Source: State Controller's Office, Report of Cash Assets of All Funds in The State Treasury 17 Local Agency Investment Fund The Local Agency Investment Fund was established by Chapter 730, Statutes of 1976. This fund enables local governmental agencies or trustees to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected to invest these monies with State monies as a part of the Pooled Money Investment Account. Each participating agency determines the length of time its money will be on deposit with the State Treasurer with the exception of bond proceeds, which must remain for a minimum of 30 days. At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency's respective amounts deposited in the Fund and the length of time such amounts remained therein. Prior to the distribution, the State's reasonable costs of administering this program are deducted from the earnings. Earnings for 2000/01 Gross earnings for fiscal year 2000/01 totaled $873,410,950. This represented a 6.07 percent yield for this investment program. Participation As of June 30, 2001, there were 2,928 participants in the Local Agency Investment Fund consisting of 54 counties, 468 cities, 1,896 special districts, 286 trustees and 224 bond accounts. Deposits in the fund averaged $14.397 billion for the year. The Year in Review, Source: State Treasurer's Office, Division of Investments (LAIF) The following table shows monthly resources of the Local Agency Investment Fund during the 2000/01 fiscal year. Resources of the Local Agency Investment Fund 2000/01 Fiscal Year (Month -End Balances) $18,000,000 $16,000,000 $14,000,000 $12,000,000 O 141i,11 F' 18 Source: State Treasurer's Office, Division of Investments (LAIF) 19 Appendix A POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENTS AND EARNINGS ($ In Thousands) p� Y �V 21f # " i s ro{, Ala, Yln v ? y, ,.al,�;'4 ,T� '`'� {m t s �,$'. t+i� �+��a{ 1957-58 $ 594,306 $ 16,421 2.76 1958-59 544,868 15,762 2.89 1959-60 614,835 21,045 3.42 1960-61 736,204 28,139 3.82 3.23 1961-62 867,144 26,521 3.06 3.19 1962-63 910,863 30,548 3.35 3.31 1963-64 896,535 32,519 3.63 3.46 1964-65 966,592 38,004 3.93 3.56 1965-66 1,083,347 47,761 4.41 3.68 3.48 1966-67 1,057,800 52,540 4.97 4.06 3.62 1967-68 1,1 17,717 56,566 5.06 4.40 3.85 1968-69 1,301,302 78,174 6.01 4.88 4.17 1969-70 1,216,414 84,781 6.97 5.48 4.52 1970-71 1,264,894 77,527 6.13 5.83 4.75 4.32 1971-72 1,397,464 68,350 4.89 5.81 4.93 4.35 1972-73 2,254,401 125,116 5.55 5.91 5.15 4.54 1973-74 2,594,629 232,780 8.97 6.50 5.69 4.94 1974-75 2,749,431 238,298 8.67 6.84 6.16 5.29 1975-76 3,209,143 204,303 6.37 6.89 6.36 5.46 1976-77 4,460,487 261,657 5.87 7.08 6.45 5.65 1977-78 6,843,940 458,625 6.70 7.31 6.61 5.87 1978-79 8,123,266 692,417 8.52 7.22 6.86 6.20 1979-80 8,285,941 873,469 10.54 7.60 7.22 6.64 1980-81 7,298,693 786,877 10.78 8.48 7.69 7.07 1981-82 5,234,524 631,968 12.07 9.72 8.40 7.54 1982-83 5,254,589 549,229 10.45 10.47 8.89 7.90 1983-84 7,094,849 738,462 10.41 10.85 9.04 8.19 1984-85 11,903,660 1,275,503 10.72 10.891 9.24 8.44 1985-86 15,438,406 1,401,990 9.08 10.55 9.51 8.64 1986-87 19,167,196 1,425,047 7.43 9.62 9.67 8.81 1987-88 17,628,558 1,388,074 7.87 9.10 9.79 8.96 1988-89 17.496,405 1,516,767 8.67 8.75 9.80 8.94 1989-90 19,558,775 1,692,905 8.66 8.34 9.61 8.94 1990-91 20,754,895 1,663,140 8.01 8.13 9.34 9.05 1991-92 21,456,433 1,329,476 6.20 7.88 8.75 9.07 1992-93 23,051,543 1,085,126 4.71 7.25 8.18 8.94 1993-94 25,433,078 1,115,660 4.39 6.39 7.57 8.67 1994-95 26,802,123 1,482,574 5.53 5.77 7.05 8.33 1995-96 26,623,196 1,519,020 5.71 5.31 6.72 7.99 1996-97 28,264,069 1,582,443 5.60 5.19 6.53 7.56 1997-98 29,344,512 1,672,382 5.70 5.38 6.32 7.25 1998-99 33,451,088 1,787,765 5.34 5.58 5.98 6.91 1999-00 35,029,034 1,999,483 5.71 5.61 5.69 6.57 2000-01 43,840,421 2,676,158 . 6.10 5.69 5.50 6.38 Source: The average investment portfolio, earnings and annual earnings rate were taken from the published Annual Report of the Pooled Monev Investment Board for each fiscal year. Please see the following note. 20 NOTE TO PMIA SUMMARY OF INVESTMENTS AND EARNINGS TABLE The Pooled Money Investment Board was established as an agency of State government by Chapter 1703, Statutes of 1955, and became operational in April 1956. The 1956-57 fiscal year was the first full year for the Pooled Money Investment Account (PMIA). In 1957-58, the Surplus Money Investment Fund (SMIF) and the Condemnation Deposits Fund (CDF) were placed under the administration of the PMIB. Separate investment portfolios were managed for these two funds for a number of years. SMIF operated this way until the 1967-68 fiscal year, when legislation allowed this fund to be invested as a part of the PMIA. The CDF continued as a separate investment portfolio until 1975, when it also was combined with the PMIA. In order to make data for the early years in the table comparable to the later years (1975-76 and after), the average daily investment and the annual earnings for both SMIF and CDF were combined with those for the PMIA. The earning rates for these early years were computed using these combined figures. 21 FUSTORICAL PMIA YIELDS (Yield In Percent Per Annum) • sS 3. ��' ,rm' ,sA �� W, �` � � !°vr��w 4� ,a wa d P�` � � �., `„` n�a 1N` � Na`a',. a \ ��,� 4d . a' t, xP'a 1t DA rE' # *�Ai Jan-77 5.77 Feb-77 5.66 Mar-77 5.66 5.68 Apr-77 5.65 May-77 5.76 Jun-77 5.85 5.87 5.78 5.79 Jul-77 5.93 Aug-77 6.05 Sep-77 6.09 5.84 Oct-77 6.39 Nov-77 6.61 Dec-77 6.73 6.45 6.18 Jan-78 6.92 Feb-78 7.05 Mar-78 7.14 6.97 Apr-78 7.27 May-78 7.39 Jun-78 7.57 6.70 7.35 7.17 Jul-78 7.65 Aug-78 7.82 Sep-78 7.87 7.86 Oct-78 8.11 Nov-78 8.29 Dec-78 8.77 8.32 8.09 Jan-79 8.78 Feb-79 8.90 Mar-79 8.82 8.81 Apr-79 9.08 May-79 9.05 Jun-79 9.22 8.52 9.10 8.98 Jul-79 9.20 Aug-79 9.53 Sep-79 9.26 9.26 Oct-79 9.81 Nov-79 10.22 Dec-79 10.22 10.06 1 9.66 22 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) 1\'„y' S •, . p �` G,A " n4'A- ''1 1 " i L. M• ,�^tA' � :h ^5 k'�� +. ,} 1 Y v 1 Jan-80 10.98 Feb-80 11.25 Mar-80 11.49 11.11 Apr-80 11.48 May-80 12.02 Jun-80 11.80 10.54 11.54 11.38 Jul-80 10.21 Aug-80 9.87 Sep-80 9.95 10.01 Oct-80 10.06 Nov-80 10.43 Dec-80 10.96 10.47 10.21 Jan-81 10.99 Feb-81 11.69 Mar-81 11.13 11.23 Apr-81 11.48 May-81. 12.18 Jun-81 11.44 10.78 11.68 11.69 Jul-81 12.35 Aug-81 12.84 Sep-81 12.06 12.40 Oct-81 12.40 Nov-81 11.89 Dec-81 11.48 11.91 12.19 Jan-82 11.68 Feb-82 12.04 Mar-82 11.84 11.82 Apr-82 11.77 May-82 12.27 Jun-82 11.99 12.07 11.99 11.93 Jul-82 12.24 Aug-82 11.91 Sep-82 11.15 11.74 Oct-82 11.11 Nov-82 10.70 Dec-82 10.40 1 1 10.71 1 11.26 23 HISTORICAL PNIIA YIELDS (Continued) (Yield In Percent Per Annum) ��`a '�` kM 7� � "� {a. 4 R ��S��,i 1� '• f �� # �,kf �4 } `4t �a 'iY'�v# ,: ,�� Y '. 1 $ ",. f � �Y C � �1\ �' M v+K' � `� `�^ i s �.: 'S, W A ... .��.... sa a,..... �.. ✓9'�. �k+v.,. �� 4 ../iE. ...uwA.� x pt 1�. G A4 K t'� f pp jytl ;�"„e\1a. ,m4�.ffiw.w�.. wn.. ... • , : / : • / ; •, 9.69 ' .87 9.60 / 9.64 9.98 • , / ' 1 • l ' l I 10.04 1 10.16 • / / / .15 / 8I • ' 1 , / 1 , 10.38 / .32 ' ' , ' Nby-84 10.84 / I 10.88 / .63 • , 1 I • • 1 I 11.60 11.53 ' • , , / 1 Feb-85 , .29 Ntar-851 10.12 , .32 Apr-85 / / • , /: 9.98 1 .19 • , , • ' ' • 9.54 • , 1 , .49 • , ' I 9.50 24 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) Jan-86 9.25 e "k `ffink- �1 d. 4y q�, ` m r Feb-86 9.09 Mar-86 8.46 9.09 Apr-86 8.62 May-86 8.37 Jun-86 8.23 9.08 8.39 8.70 Jul-86 8.14 Aug-86 7.84 Sep-86 7.51 7.81 Oct-86 7.59 Nov-86 7.43 Dec-86 7.44 7.48 7.65 Jan-87 7.37 Feb-87 7.16 Mar-87 7.21 7.24 Apr-87 7.04 May-87 7.29 Jun-87 7.29 7.44 7.21 7.23 Jul-87 7.46 Aug-87 7.56 Sep-87 7.71 7.54 Oct-87 7.83 Nov-87 8.12 Dec-87 8.07 7.97 7.80 Jan-88 8.08 Feb-88 8.05 Mar-88 7.95 8.01 Apr-88 7.94 May-88 7.82 Jun-88 7.93 7.87 7.87 7.95 Jul-88 8.09 Aug-88 8.25 Sep-88 8.34 8.20 Oct-88 8.40 Nov-88 8.47 Dec-88 8.56 8.45 1 8.34 25 HISTORICAL PNIIA YIELDS (Continued) (Yield In Percent Per Annum) 26 HISTORICAL PNHA YIELDS (Continued) (Yield In Percent Per Annum) a9t .r t ' " °d dti , ,:.5 1 .. mYkF ° • '+ 3" +'`.;. � * :. ' . " a N 2, L � 1 Jan-92 6.12 Feb-92 5.86 Mar-92 5.68 5.87 Apr-92 5.69 May-92 5.38 Jun-92 5.32 6.20 5.45 5.65 Jul-92 5.24 Aug-92 4.96 Sep-92 4.76 4.97 Oct-92 4.73 Nov-92 4.66 Dec-92 4.65 4.67 4.82 Jan-93 4.68 Feb-93 4.65 Mar-93 4.62 4.64 Apr-93 4.61 May-93 4.43 Jun-93 4.55 4.71 4.51 4.61 Jul-93 4.44 Aug-93 4.47 Sep-93 4.43 4.44 Oct-93 4.38 Nov-93 4.37 Dec-93 4.38 4.36 4.39 Jan-94 4.36 Feb-94 4.18 Mar-94 4.25 4.25 Apr-94 4.33 May-94 4.43 Jun-94 4.62 4.39 4.45 4.36 Jul-94 4.82 Aug-94 4.99 Sep-94 5.11 4.96 Oct-94 5.24 Nov-94 5.38 Dec-94 5.53 1 1 5.37 1 5.15 27 STORICAL PNIIA YIELDS (Continued) (Yield In Percent Per Annum) w' ` ;w %" ar x `4 'M{r aM d, ry d t 11d?tq',�G1'1pN`-1 1 DATE Jan-95 5.61 Feb-95 5.78 Mar-95 5.93 5.76 Apr-95 5.96 May-95 6.01 Jun-95 6.00 5.53 5.98 5.87 Jul-95 5.97 Aug-95 - 5.91 Sep-95 5.83 5.89 Oct-95 5.78 Nov-95 5.81 Dec-95 5.75 5.76 5.83 Jan-96 5.70 Feb-96 5.64 Mar-96 5.56 5.62 Apr-96 5.54 May-96 5.50 Jun-96 5.55 5.71 5.52 5.56 Jul-96 5.59 Aug-96 5.57 Sep-96 5.60 5.57 Oct-96 5.60 Nov-96 5.60 Dec-96 5.57 5.58 5.57 Jan-97 5.58 Feb-97 5.58 Mar-97 5.58 5.56 Apr-97 5.61 May-97 5.63 Jun-97 5.67 5.59 5.63 5.59 Jul-97 5.68 Aug-97 5.69 Sep-97 5.71 5.68 Oct-97 5.71 Nov-97 5.72 Dec-97 5.74 1 1 5.71 1 5.69 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) r �`N"AY•Y� ._. .k�€"�"�i�,ia�`�,M�",�`s''t � a '� #mc e nAk� �a^p�' 4.; �^,3�^�y'�4'"+mawt"9`° w p r IMP C r „ M *jK d`p� , to r t T\� m"�A �1 IZ k�" 7 1 e, SSA' y�#' K hC, erki$".�^ P a4TO-" Ra ..y k�`Y ,y� rah, ..« �. �''"t { R+ 9 F .hex { mmr�i ,w,dys e ,A9A � G / 1 ' 5.74 I 1 5.68 / • , , 1 5.67 • , 1 5.67 5.67 itd.15.65 • ' ' • ' 1 ; 5.64 5.64 Oct-98 ' 1 ; • 1 ' 5.465.55 1 1 I ' ' Feb -"I AtllI 1 Apr-" I 1 1 , Jun-99i ,' • ' 1 1 Oct-991 1 1 1 t • 1 ' 5.64 5.49 , / I ' 5.76 • 1 Nbr 15.85 1 • , I' I I I 6.19 —JunI ' • ' 5.99 29 HISTORICAL PMIA YIELDS (Continued) (Yield In Percent Per Annum) ;� "w Y -i gy 1 JAIL g is 7 �1�\ 1WN 1 b ' x .'a-�"'F'� 1 ' @ '��"�'` i ,,,"a� '�4 atrr*w� 4 •:'u w ZY, \ \�a i N� 1 w ,4 \, h\+N� N jp Jul-00 6.44 Aug-00 6.50 Sep-00 6.50 6.47 Oct-00 6.52 Nov-00 6.54 Dec-00 6.53 6.52 6.49 Jan-01 6.37 Feb-01 6.17 Mar-01 5.98 6.16 Apr-01 5.76 May-01 5.33 Jun-01 4.96 6.10 5.32 5.73 The State Treasurer's Office complies with the Americans With Disabilities Act (ADA). If you need additional information or assistance, please contact the State Treasurer's Pooled Money Investment Board at (916) 653-2917. P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 TO: MAYOR AND CITY COUNCIL PLANNING COMMISSION MEMBERS COMMUNITY SERVICES COMMISSION MEMBERS CULTURAL ARTS COMMISSION MEMBERS HISTORIC PRESERVATION COMMISSION INVESTMENT ADVISORY BOARD BUILDING AND HOUSING APPEALS BOARD ARCHITECTURE AND LANDSCAPE REVIEW COMMITTEE ALL DESIGNATED CITY EMPLOYEES FROM: JUNE GREEK, CITY CLERK DATE: JANUARY 15, 2002 SUBJECT: STATEMENTS OF ECONOMIC INTERESTS (760) 7 7 7 - 7 0 0 0 FAX (760) 777-7101 Attached is Form 700 (Statement of Economic Interests) which must be filed in my office no later than April 2, 2002. The period this statement covers is from January 1, 2001 through December 31, 2001. For newly appointed employees or board, committee or commission members, the statement should cover the period beginning with your employment or appointment date through December 31, 2001. I am also enclosing a fact sheet prepared by FPPC and a copy of the City's Conflict of Interest Code which outlines your disclosure category. If you have any questions or concerns regarding this filing, please don't hesitate to contact me. Attachments (3) JSG N:/City Clerk/FPPC/annl.statm. DISTRIBUTION LIST CITY OF LA QUINTA DESIGNATED FILERS - STATEMENTS OF ECONOMIC INTEREST Accounting Manager - Amy Swan -Draper' Assistant City Attorney - John Ramirez Assistant City Manager - Mark Weiss * Building and Safety Director - Tom Hartung' Building and Safety Manager - Greg Butler' City Attorney - M. Katherine Jenson* City Clerk - June Greek' City Manager - Tom Genovese* Community Development Director - Jerry Herman' Community Services Director - Sidona Horvitz' Community Safety Manager - John W. Hardcastle' Consultants' * * Finance Director - John Falconer* Maintenance Manager - James Lindsey' Management Analyst - Vacant' Management Analyst - Maria Casillas' Management Assistant - Deborah Powell' Mayor - John J. Pena* Members of the Architecture and Landscape Review Committee' Bill Bobbitt Dennis Cunningham David Thoms Members of the City Council* Don Adolph Terry Henderson Ron Perkins Stanley Sniff Members of the Community Services Commission' Deborah Bechard Mike Davis Michelle Boudreau Joan Rebich Victoria St. Johns 1 - Persons listed in this category shall disclose all investments, business positions and income from sources located in or doing business in the city and any interests in real property located in the city, including property located within a two-mile radius of any property owned or used by the city. * - Persons holding these positions file Form 700 Statement of Economic Interest pursuant to Government Code Section 87200. * * - Consultants are defined by Commission Regulation 18700 - See Conflict of Interest Code (attached) Members of the Cultural Arts Commission' Denise Diamond Else Loudon Elaine Reynolds Rosita Shamis Dan Baxley Members of the Historic Preservation Commission' Barbara Irwin Archie Sharp Michael Mitchell Maria Puente Robert S. Wright Members of the Investment Advisory Board* Milton Olander Cyrille P. Mahfoud Tom Levvm Lee M. Osborne Gia Filice Members of the Planning Commission* Jacques Ables Robert Tyler Richard Butler Tom Kirk Steve Robbins Members of the Project Area Committee' (inactive) Personnel/Risk Manager - John Ruiz' Planning Manager - Christine di lorio' Principal Planner - Stan Sawa' Principal Planner - Fred Baker' Public Works Director/City Engineer - Vacant' Senior Engineer - John Freeland' Senior Engineer - Steve Speer' 2001 - Consultants required to file Frank Spevacek, RSG - Acting RDA Director Roy Stephenson - Acting Public Works Director/City Engineer Nick Nickerson, Nickerson and Associates - CIP Project Manager The Fair Political Practices Commission 5tatemeritr of Economic Interests (Form 700) Useful Facts for Filers Introduction The Form 700 has been updated for the 2001/2002 year. There were no major changes to the form this year. This year, April 2, 2002 is the due date for your annual Form 700. (Generally, April 1 is the due date; however, April 1 fa!15 on a State holiday this year.) YoLr Form '00 muo-t be postmarked or hand -delivered by the due date. If your Statement 15 filed late, you may be subject to late filing penalties of $10 per day, up to a maximum of $100. Enforcement Update The Ff pC has instituted a new program focusing on individuals who fail to file the Form 700. Over 25 filere .vere fined in 2001. Most fines were between $200 and $500. Be sure to file your Form 700 by the due date! .......................................................................... Helpful Tips & Kaminders ✓ Code Filers - Keview your disclosure categories. (Obtain a copy from your filing officer -- they are not included in the Form 700.) ✓ Know your jurisdiction. (see Appendix-5 of the Form 700 for an explanation of jurisdiction.) ✓ The period covered for most annual Form 7OOs is January 1, 2001 through December 31, 2001. The forms are pre- printed with the correct dates. If the dates are changed to 2002, you may be required to file an amendment. ✓ Sign your statement. An unsigned statement is not considered filed. •......................................................................... Common Disclosure Questions Q. City Treasurer Lance Michaels holds stocks in various companies through an account that is managed by an investment firm. Since he did not decide which particular Stocks to purchase, must he disclose the otocks? A. Yes. Each individual Stock in a business entity located or doing business in his jurisdiction worth $2,000 or more must be disclosed on Schedule A-1 or A-2. The name of the investment firm managing the account i5 not disclosed. The FPPC does not accept brokerage or other financial otatements. (Note. Inveotment5 in mutual funds registered with the 5ecuritie5 and Exchange Commis5ion are not required to be reported.) Q. City Council Member Alan Lawrence is a board member for the League of California Cities. The league reimburses its board members for travel and lodging, as well as meals and other expenses, associated with the board meetings. Are these payments reportable? A. Yes. Board members must report these reimbursements as income or gifts on Schedule F. If Mr. Lawrence believes he provided equal or greater consideration for the travel and lodging, they are reported a5 income if the payments exceed $500 in a calendar year. (See reverse for additional que5tion5.) This fact Sheet provides general guidance and information only, For aooiotance, contact uo for toll -free advice at 9-866-A5K-FPPC (275-3772) or conoult our web Site at wwwafppc.ca.gov. Q. Planning Commissioner 5rianne Lee has a Sole proprietorship, 5rianne's Boutique. The boutique is located outside the city limits; however, She has customers who live and work in the city. is her business reportable? A. Yes. 5ecauoe 5rianne s Boutique has customers that live and work in her city, the boutique is considered to be doing business in herjurisdiction. The investment in and income received from the business must be reported on Schedule A-2. Q. County employee James Dillon has an outstanding auto lease for $15,000 from an auto dealership. Pursuant to his disclosure categories, he is required to report "investments and busine55 po5ition5 in, and income from Sources located in or doing busine55 in the jurisdiction." Must this lease be discl ooed? A. YeS. It should be reported on Schedule 0, if a lease from an auto dealership exceeds $10,000 at any time during the reporting period, it must be disclosed. Q. Mayor Toni Greer received a gift of two tickets to a concert. Each ticket was valued at $50. She gave the tickets to her brother and his wife. Must Ms. Greer report the tickets as gifts even though she personally did not use them? A. YeS, Since Ms. Greer exercised direction and control of the tickets, She must report the gifts on Schedule E r•-•-•- - -•- - - - - - - - -•-•-•-.-.-.-.-.-.- ' Gift Limite Gifts from certain persons are limited to a value of $520 from a Single Source in a calendar year. ; Example: A new business in town, Gary'S Golf Greens, provides yearly paooeo to each city council member. These paooc5 must be reported a5 gifts and may not exceed the $320 gift limit. (See the FPFC fact sheet regarding gifts, honoraria, travel and loans or, ' our web site, www.fppc.ca.gov.) ' ------------------------------------------------ AQ Complete Your Form 700 Online Q The Form 700 may be completed online. The FFFC'S web Site includes instructions for downloading the Form 700 and the reader (Adobe Acrobat Reader) that is required. The information cannot be Saved unless you have a program that enables you to Save interactive forms. Otherwise, the form must be printed before exiting. It cannot be filed electronically. Do You Have Multiple Filing Obligations? If you hold more than one position that requires you to file a Form 700, you may complete an "expanded" Statement. (For example, a city council member that 5it5 on a regional council of governments.) Just complete one Form 700 covering the disclosure requirements for all po5ition5, make the appropriate amount of copieo before Signing it, then file an originally signed Form 700 with each filing official. Combining Statements Certain types of Statemento may be combined. For example, if you leave office after January 1 but before the date your annual statement is due, you may combine your annual and leaving office Statements. Just complete one Statement, indicate the applicable statement types and periods covered, and file by the earliest due date. Pleaoe refer to the Form 700 instructions and Appendix for Specific reporting procedures and exceptions. 2.60.010 Chapter 2.60 CONFLICT OF INTEREST CODE Sections: 2.60.010 Incorporation of standard code. 2.60.020 Designated employees —Disclosure categories. 2.60.010 Incorporation of standard code. The Political Reform Act, Government Code Section 81000, et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations Section 18730, which contains the terms of a standard conflict of interest code. It can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are incorporated by reference and, along with Section 2.60.020 in which members and employees are designated and disclosure categories are set forth, constitute the conflict of interest code of the city. Designated employees shall file statements of economic interests with the city clerk who will make the statements available for public inspection and reproductions. Upon receipt of the statements, the city clerk shall make and retain a copy and forward the original of these statements to the city council. (Ord. 261 § 2 (Art. A) (part), 1994) 2.60.020 Designated employees —Disclosure categories. Accounting managers Assistant city manager` Building and safety directors Building and*safety managers City attorney City clerks City manager* Community development directors Community safety managers Community services directors Consultants"* Finance director* Maintenance managers Management analysts Management assistants Members of the architecture and landscape review committees Members of the city council* Members of the community services commissions Members of the cultural arts commissions Members of the historic preservation commissions Members of the investment advisory board* Members of the planning commission* Members of the project area committees Personnel/risk managers Planning managers Principal planners Public works director/city engineers Senior engineers 37 (la Quinta 9-00) 2.60.020 1 Persons listed in this categoryshall disclose all investments, business positions and income from sources located in or doing business in the city and any interests in real property located in the city, including property located within a two mile radius of any property owned or used by the city. * Persons holding these positions file the Form 700 Statement of Economic Interest pursuant to Government Code Section 87200. ** Commission Regulation 18700 defines "consultant" as an individual who, pursuant to a contract with a state or local government agency: A. Makes a governmental decision whether to: 1. Approve a rate, rule or regulation, 2. Adopt or enforce a law, 3. Issue, deny, suspend or revoke any permit, license, application. certificate, approval, order or similar authorization or entitlement, 4. Authorize the agency to enter into, modify or renew a contract provided it is the type of contract which requires agency approval, 5. Grant agency approval to a contract which requires agency approval and in which the agency is a party or to the specifications for such a contract. 6. Adopt, or grant agency approval of, policies, standards or guidelines for the agency, or for any subdivision thereof; or B. Serves in a staff capacity with the agency and in that capacity performs the same or substantially all the same dudes for the agency that would otherwise be performed by an individual holding a position specified in the agency's conflict of interest code. Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The city manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The city manager's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code. (Ord. 346 § 1, 2000: Ord. 329 § 1, 1999: Ord. 321 § 1, 1998: Ord. 261 § 2 (Att. A) (part), 1994) (La Quinta 9-00) 38 Fair ` Political Practices Commission FORM 700 Statement of Economic Interests FPPC Form 700 (2001/2002) 428 J Street, Suite 620 • Sacramento, CA 95814 • 866-ASK-FPPC (866-275-3772) www.fppc.ca.gov QUICK TIPS FOR EASIER FILING 1. Know your jurisdiction. You only have to report investments and business positions in business entities, real property, and income from sources that are located or doing business in your agency's jurisdiction. Gifts are reportable regardless of the jurisdiction. (See Appendix-8 for an explanation of jurisdiction.) 2. Determine your type of disclosure. Two types of public officials complete the Form 700. • If you file this form because you hold a position listed under Gov. Code section 87200, disclose all of your financial interests in your agency's jurisdiction. (See Appendix-1 for a complete list of 87200 filers.) If you file because your position is listed in a state or local agency's conflict -of -interest code, review your disclosure categories because they will describe the specific interests you must report. Obtain your disclosure categories from your agency — they are not contained in the Form 700. 3. Reporting timeframes. Report your financial interests based on the type of statement you are filing. 4. Check your calendar. File this form by the due date. Statements that are mailed are considered filed on the date of the postmark. The law does not provide for filing deadline extensions. 5. Use the provided schedules. Don't attach brokerage statements or other financial documents. For further guidance, the instructions for each schedule contain a detailed list of interests that are reportable. 6. Use your computer. An interactive version of Form 700 is available on our website (www.fppc.ca.gov). 7. Review your statement. Your Form 700 is a public record. Take a second look at your statement for accuracy and completeness before it is filed. 8. Sign your statement. File your originally signed statement with your filing official. Keep a copy of your statement for your files. 9. Amendments. You may amend your statement at any time. Amendment schedules are available from your filing official, the FPPC, or on our website (www.fppc.ca.gov). 10. Call the Commission. Call toll -free at 866-ASK-FPPC if you need assistance. ------ -- •-•-• i Where to Find... i ! ❑ Types of Statements ; See Appendix-2. i ! ❑ When to File i See Appendix-3. i ❑ Where to File See Appendix-3. i i i ❑ Terms and Definitions See Appendix-5. i i i INTRODUCTION The Political Reform Act (Gov. Code sections 81000- 91015) requires most state and local government officials and employees to publicly disclose their personal assets and income. They also must disqualify themselves from participating in decisions which may affect their personal financial interests. The Fair Political Practices Commission (FPPC) is the state agency responsible for issuing the attached Statement of Economic Interests, Form 700, and for interpreting the law's provisions. Statements of Economic Interests are public documents. The filing officer must permit any member of the public to inspect and copy any statement during normal business hours. Individuals required to file Form 700 also should be aware of the following: Gift Prohibition Most state and local officials, employees, and candidates are prohibited from accepting gifts totaling more than $320 in a calendar year from a single source. In addition, state officials, state candidates, and certain state employees are subject to a $10 limit per calendar month on gifts from lobbyists and lobbying firms registered with the Secretary of State. (See Appendix-7 for more detailed information.) Honorarium Ban Most state and local officials, employees, and candidates are prohibited from accepting any honorarium for any speech given, article published, or attendance at a conference, convention, meeting, or like gathering. (See Appendix-7 for more detailed information.) Loan Prohibitions State and local public officials may not receive any personal loan totaling more than $250 from an official, employee, or consultant of, or from anyone who contracts with, their governmental agencies. In addition, elected officials may not receive any personal loan totaling more than $500 from a single lender unless certain terms of the loan are specified in writing. Under certain circumstances, a personal loan that is not being repaid or is being repaid below certain amounts may become a gift to the official who received it. (See Appendix-8 for more detailed information.) Disqualification Public officials are, under certain circumstances, required to disqualify themselves from making, participating in, or attempting to influence governmental decisions that will affect their financial interests. This may include interests they are not required to disclose (for example, certain sources of income of $500 or more are not reportable, but may be disqualifying). Post -Governmental Employment Members of the State Legislature and certain state agency officials and employees who leave office are subject to restrictions on representing clients or employers before their former agencies. Enforcement The filing officer who retains originally signed statements of economic interests may impose a fine for any statement that is filed late. The fine is $10 per day up to a maximum of $100. Late filing penalties can be reduced or waived under certain circumstances. Persons who fail to timely file their Form 700 may be referred to the FPPC's enforcement division (and in some cases to the Attorney General or district attorney) for investigation and possible prosecution for violations of the Act. In addition to the late filing penalties, a fine of up to $5,000 per violation may be imposed. The FPPC has instituted an expedited enforcement program to handle Form 700 nonfilers. To report a suspected violation, or to find out more about the expedited enforcement program, call the FPPC's enforcement staff at 1-800-561-1861. For assistance concerning reporting, prohibitions, and restrictions under the Act: -� Call the FPPC toll -free at (866) ASK-FPPC. Obtain the following FPPC publications from the FPPC website (www.fppc.ca.gov): -- Fact Sheet entitled "Can I Vote? Conflicts of Interest Overview" -- Fact Sheet entitled "Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans" -- Fact Sheet entitled "Leaving Your State Job? Post -Employment Restrictions May Affect You" -- Pamphlet entitled "Your Duty to File: A Basic Overview of State Economic Disclosure Law and Reporting Requirements for Public Officials." INSTRUCTIONS -COVER PAGE Enter your name, mailing address, and daytime telephone number in the spaces provided. The Form 700 is a document available for public review so you may list your business/office address instead of your home address. Part 1. Office, Agency, or Court • Enter the name of the office sought or held, or the agency or court. (Examples: State Assembly; Board of Supervisors; Office of the Mayor; Department of Finance; Hope County Superior Court.) • Indicate the name of your division, board, or district, if applicable. (Examples: Division of Waste Management; Board of Accountancy; District 45.) • Enter your position title. (Examples: Director; Chief Counsel; City Council Member; Staff Services Analyst.) • If you have multiple filing obligations (for example, a city councilperson who also is a member of a county board or commission), you may be required to file statements with each agency. To simplify your filing obligations, you may complete an expanded statement. To do this, enter the name of the other agency(ies) with which you are required to file and your position title(s) in the space provided. Attach an additional sheet if necessary. Complete one statement covering the disclosure requirements for all positions and file a copy with each agency. Each copy must contain an original signature Example: This filer is a member of the Sacramento City Council. I. Full Name of office Sought or Held, Agency or Court: City Council Division, Board, District, if applicable: District 5 Position Member of the City Council 00 If filing for multiple positions, list additional agency(ies)f Position(s): (Attach a separate sheet if necessary) Agency: Position Title: 2. Jurisdiction of Office (Check one box) ❑ State ❑ County of ® City of Sacramento Multi -County ❑ Other Part 2. Office Jurisdiction Check the box indicating the jurisdiction of your agency and, if applicable, identify the jurisdiction. (See Appendix-8 to determine your jurisdiction.) If your agency is a multi -county office, list each county in which your agency has jurisdiction. If your agency is other than a state office, court, county office, city office, or multi -county office (for example, school districts and special districts), check the "other" box and enter the county or city in which the agency has jurisdiction. Part 3. Type of Statement Check at least one box. The period covered by a statement is determined by the type of statement you are filing. (See Appendix-2 for detailed information about types of statements.) Combining Statements: Certain types of statements may be combined. For example, if you leave office after January 1 but before the deadline for filing your annual statement, you may combine your annual and leaving office statements. Consult your filing officer or the FPPC. Part 4. Schedule Summary • Check the "Yes" box for each schedule you use to disclose interests. -or- If you have nothing to disclose on any schedules, check the "No reportable interests" box. (Please do not attach any blank schedules.) • Enter the total number of pages included in your statement (including the cover page). Part 5. Verification Complete the verification by signing the statement and entering the date signed. An unsigned statement is not considered filed and you may be subject to late filing penalties. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-1 STATEMENT OF ECONOMIC INTERESTS D ate IaI u e oived A Public Document Please type or print in ink COVER PAGE NAME (LAST) (FIRST) (MIDDLE) DAYTIME TELEPHONE NUMBER ( ) MAILING ADDRESS STREET CITY ZIP CODE OPTIONAL: FAX / E-MAIL ADDRESS (May be business address) 1. Full Name of Office Sought or Held, Agency or Court: Division, Board, District, if applicable: Position: no If filing for multiple positions, list additional agency(ies)/ position(s): (Attach a separate sheet if necessary.) Agency: Position Title: 2. Jurisdiction of Office (Check one box) ❑ State ❑ County of 71 City of ❑ Multi -County ❑ Other 3. Type of Statement (Check at least one box) ❑ Assuming Office/Initial Date: —J_I ❑ Annual: The period covered is January 1, 2001, through December 31, 2001. -or- 0 The period covered is —1_J , through December 31, 2001. ❑ Leaving Office Date Left: —J_I (Check one) Q The period covered is January 1, 2001, through the date of leaving office. -or- 0 The period covered is _/_I , through the date of leaving office. ❑ Candidate 4. Schedule Summary (Check applicable schedules or "No reportable interests.") IDuring the reporting period, did you have any reportable interests to disclose on: Schedule A-1 ❑ Yes - schedule attached Investments (less than 10% Ownership) Schedule A-2 ❑ Yes - schedule attached Investments (Greater than 10% Ownership) Schedule B ❑ Yes - schedule attached Real Property Schedule C ❑ Yes - schedule attached Income & Business Positions (Income Other than Loans. Gifts. and Travel) Schedule D ❑ Yes - schedule attached Income - Loans Schedule E ❑ Yes — schedule attached Income - Gifts Schedule F ❑ Yes — schedule attached Income — Travel Payments -or- -► ❑ No reportable interests on any schedule Total number of pages completed including this cover page: 5. Verification I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Date Signed (month, day, year) Signature (File the originally signed statement with your filing official.) FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC WHAT SCHEDULE DO I USE TO REPORT? Business positions................................................................. ..................................... Schedule A-2 or Schedule C Commission income.............................................................. ......... Schedule A-2 or Schedule C (see Appendix-5) Gifts received by family members ................................................... Disclosure may not be required, see Schedule E Gifts received from family members .................................. ......................Disclosure not required, see Schedule E Income to my business.......................................................... Schedule A 2 Individual Retirement Account............................................................ Schedule A-1 or Schedule B (see Appendix-9) Investments......................................................................................................... ........ Schedule A-1 or Schedule A-2 Loans made to others ..................................................... .... Not required, but report repayments on Schedule C Loans received............................................................ ................... Schedule B for real property or Schedule D Loans to my business ..................................... Schedule A 2 Owning a business If I own less than 10% of a business ................................Schedule A _1 ............................. If I own 10% or more of a business ............. Schedule A 2 Partnerships If I own less than 10% of a partnership ................ ...................................... .. _ Schedule If I own 10% or more of a partnership .................. ............................. Schedule A 2 Real estate holdings...................................................... Schedule B (Schedule A-2 if held by a business entity/trust) Rental income .................................... Schedule B or Schedule C Rental property.............................................................. Schedule B (Schedule A-2 if held by a business entity/trust) Sale of my home/automobile/boat ............................. Schedule C ................................................................................ Soleproprietorship.................................................................................................................................. Schedule A-2 Spouse's income ................................................ Schedule A 2 or Schedule C Stock holdings If I own less than 10% of a company's stock.................... .................................. If I own 10% or more of a company's stock ................................................... ..................."'......... Schedule A-1 .................................... Schedule A-2 Ticketsand passes.................................................................................................................................... Schedule E Travel reimbursements or payments ................................... Schedule F ....................................................................... Trusts.......................................................................... ..... Schedule A-2 (see Appendix-10) ......................................... FPPC Form 700 (200112002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-2 ANSWERING YOUR QUESTIONS Q. I hold two other board positions in addition to my position with the county. Must I file three statements of economic interests? A. Yes. However, you may complete only one statement by listing the county and the two boards on the cover page of the Form 700 as the agencies for which you will be filing. Report your economic interests using the broadest jurisdiction and disclosure requirements assigned to you by the three agencies. Make two copies of the entire statement before signing it, sign each copy with an original signature, and distribute one original to the county and to each of the two boards. Q. I have an investment interest in shares of stock in a company that does not have an office in my jurisdiction. Must I still disclose my investment interest in this company? A. Possibly. The definition of "doing business in the jurisdiction" is not limited to whether the business has an office in your jurisdiction. See Appendix-8 for guidance. Q. My financial interests are the same as those that I reported last year. May I file a copy of last year's statement? A. No. You must file a new statement for the current reporting period. Q. My spouse and I have a living trust. The trust holds rental property in my jurisdiction, our primary residence, and investments in diversified mutual funds. I have full disclosure. How is this trust disclosed? A. Disclose the name of the trust, the rental property and its income on Schedule A-2. Your primary residence and investments in diversified mutual funds registered with the SEC are not reportable. Q. On Schedule B-Interests in Real Property, I have disclosed my interest in a rental property. Must I also disclose the names of my tenants? A. Only disclose the names of those tenants from whom your pro rata share of the income received was $10,000 or more in the reporting period. Otherwise, leave the space blank. See Appendix- 7 for guidance. Q. When completing the schedules for disclosing loans received, what is meant by disclosing the "term" of the loan? A. The term of a loan is the total number of months or years given for repayment of the loan at the time the loan was entered into. For example, report the term of a five-year automobile loan as "5 years" even if you have only three years left to pay on the loan. Q. I am the sole owner of my business. Where do I disclose my income - on Schedule A-2 or C? A. Sources of income to a business in which you have an ownership interest of 10% or greater are disclosed on Schedule A-2. See Appendix-5 which defines "business entity" for more information. Q. How do I disclose my spouse's income from an employer? A. Report the name of your spouse's employer as a source of income on Schedule C. Q. I hold many stocks through an account managed by a brokerage firm. Must I disclose these stocks since I did not decide which stocks to purchase? A. Yes, any stock in a business entity located or doing business in your jurisdiction worth $2,000 or more must be disclosed on Schedule A-1 or A-2. FPPC Form 700 (200112002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-3 INSTRUCTIONS - SCHEDULES A-1 AND A-2 INVESTMENTS "Investment" means any financial interest in any business entity located in or doing business in your agency's jurisdiction (see Appendix-8) in which you, your spouse, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more at any time during the reporting period. Reportable investments include: • Stocks, bonds, warrants, and options, including those held in margin or brokerage accounts. • Sole proprietorships. • Your own business or your spouse's business (see Appendix-5 for the definition of business entity). • Partnerships, such as a law firm, family farm, etc. • Investments in reportable business entities held in a retirement account (see Appendix-9). • Investments held by a business entity or trust (including a living trust) in which you, your spouse, or dependent children had a 10% or greater ownership interest. • Business trusts. You are not required to disclose: • Diversified mutual funds registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940. • Bank accounts, savings accounts, and money market accounts. • Insurance policies. • Annuities. • Shares in a credit union. • Government bonds (including municipal bonds) • Retirement accounts invested in non -reportable interests such as insurance policies, diversified mutual funds, or government bonds (see Appendix-9). • Defined benefit pension plans and profit sharing plans qualified under Internal Revenue Code section 401(a). • Interests held in a blind trust (see Appendix-10). REMINDERS ✓ Do you know your agency's jurisdiction? ✓ Did you hold investments at any time during the period covered by this statement? ✓ Code filers — Your disclosure categories may require disclosure only of specific investments. Use Schedule A-1 to report investments if your ownership interest in the entity was less than 10%, such as stock. You also may be required to complete Schedule C. Use Schedule A-2 to report investments in which your ownership interest in the entity was 10% or greater, such as a sole proprietorship. TO COMPLETE SCHEDULE A-1: • Disclose the name of the business entity. • Provide a general description of the business activity of the entity, such as pharmaceuticals, computers, automobile manufacturing, communications, etc. • Check the box indicating the fair market value of your investment. The fair market value is how much your investment was worth on the open market at its highest value during the reporting period. • Identify the nature of your investment, such as stocks, warrants, options, bonds. • If you acquired or disposed of your investment interest during the reporting period, enter the date acquired or disposed. Examples: John Smith is a manager for a state agency. His conflict - of -interest code requires full disclosure of investments. John must disclose his stock holdings of $2,000 or more in any company that does business in California as well as those stocks held by his spouse and dependent children. Susan Jones is a city council member. She has a 4% interest, worth $5,000, in a limited partnership located in the city. Susan must disclose the partnership on Schedule A-1 and income of $500 or more received from the partnership on Schedule C. Alice Howard supervises the purchasing department of a governmental agency. She owns stock in a utility company that only does business in New York. Alice is a code filer and her disclosure category requires reporting of investments of the type that provide services or supplies to the agency. She is not required to report the utility company stock because the company does not do business in her jurisdiction. FPPC Form 700 (200112002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-4 SCHEDULE A-1 Investments Stocks, Bonds, and Other Interests (Ownership Interest is Less Than 10%) > NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 ❑ $100,001 - $1,000,000 ❑ Over $1,000,000 NATURE OF INVESTMENT ❑ Stock ❑ Other (Describe) IF APPLICABLE, LIST DATE: / 01 _/_� 01 ACQUIRED DISPOSED > NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 ❑ $100,001 - $1,000,000 ❑ Over $1,000,000 NATURE OF INVESTMENT ❑ Stock ❑ Other (Describe) IF APPLICABLE, LIST DATE: _I / 01 _/_/ 01 ACQUIRED DISPOSED > NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE 7 $2,000 - $10,000 ❑ $10,001 - $100,000 ❑ $100,001 - $1,000.000 ❑ Over $1,000,000 NATURE OF INVESTMENT ❑ Stock ❑ Other (Describe) IF APPLICABLE, LIST DATE: _ ' 101 _/ 01 ACQUIRED DISPOSED Comments: > NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 ❑ $100,001 - $1,000,000 ❑ Over $1.000.000 NATURE OF INVESTMENT ❑ Stock ❑ Other (Describe) IF APPLICABLE, LIST DATE: —l— . 01 —J—J 01 ACQUIRED DISPOSED > NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 ❑ $100,001 - $1,000,000 ❑ Over $1,000,000 NATURE OF INVESTMENT ❑ Stock ❑ Other (Describe) IF APPLICABLE, LIST DATE: —/ 01 01 ACQUIRED 01 ACQUIRED DISPOSED ► NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE ❑ $2,000 - $10,000 ❑ $1o,001 - $1oo,000 ❑ $100,001 - $1,000,000 ❑ Over $1,000,000 NATURE OF INVESTMENT ❑ Stock ❑ Other (Describe) IF APPLICABLE, LIST DATE: —/—J 01 —/—J 01 ACQUIRED DISPOSED FPPC Form 700 (2001/2002) Sch. A-1 FPPC Toll -Free Helpline: 866/ASK-FPPC INSTRUCTIONS — SCHEDULE A-2 INVESTMENTS Use Schedule A-2 to report investments in a business entity or trust (including a living trust), in which you, your spouse, or your dependent children had a 10% or greater interest, valued at $2,000 or more, during the reporting period and which is located in or doing business in your agency's jurisdiction (see Appendix-8). A trust located outside your agency's jurisdiction is reportable if it holds assets that are located in or doing business in the jurisdiction. You are not required to report a trust that contains no reportable interests. Also report on Schedule A-2 investments and real property held by that entity or trust if your pro rata share of the interest was $2,000 or more during the reporting period. For example, if you had a 20% partnership interest in a business entity and the entity owns real property, you would report that real property if your pro rata share of the value of the property was $2,000 or more (for example, if the property's value was at least $10,000). TO COMPLETE SCHEDULE A-2: Part 1. Disclose the name and address of the business entity or trust. If you are reporting an interest in a business entity, complete the box as follows: • Provide a general description of the business activity of the entity. • Check the box indicating the fair market value of your investment. • If you acquired or disposed of this interest during the reporting period, enter the date acquired or disposed. • Identify the nature of your investment. • Disclose the job title or business position you held with the entity, if any (for example, if you were a director, officer, partner, trustee, employee, or held any position of management). Part 2. Check the box indicating your ross income. (This includes your pro rata share of the gross income received by the business entity or trust, as well as your community property interest in your spouse's income.) Part 3. Disclose the name of each source of income located in or doing business in your agency's jurisdiction, as follows: • Disclose each source of income and outstanding loan to the business entity or trust identified in part 1 if your pro rata share of the -gross income (including your community property interest in your spouse's income) to the business entity or trust from that source was $10,000 or more during the reporting period. • Disclose each individual or entity that was a source of commission income of $10,000 or more during the reporting period through the business entity identified in part 1. (See Appendix-5 for an explanation of commission income.) You may be required to disclose sources of income located outside your jurisdiction. For example, you may have a client who resides outside your jurisdiction but who does business on a regular basis with you. Such a client, if a reportable source of $10,000 or more, must be disclosed. You maybe required to disqualify yourself from decisions affecting sources of $500 or more in income, even though you are not required to report them. You are not required to report on Schedule C income or business positions already reported on Schedule A-2. Part 4. Report any investments or interests in real property held �y the entity or trust identified in part 1 if your pro rata share of the interest held was $2,000 or more during the reporting period. • Check the applicable box indicating if the interest held is real property or an investment. • If an investment, provide the name and description of the business entity. • If real property, report the address or other precise location, such as an assessor's parcel number, of the real property. • Check the box indicating the fair market value of your interest in the real property or investment. • Identify the nature of your interest. • If you acquired or disposed of your interest in the property or investment during the reporting period, enter the date acquired or disposed. FPPC Form 700 (200112002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-5 SCHEDULE A-2 Investments, Income, and Assets of Business Entities/Trusts (Ownership Interest is 10% or Greater) > 1. BUSINESS ENTITY OR TRUST Name Aodress Check one ❑ Trust, go to 2 ❑ Business Entity, complete the box, then co to 2 li GENERAL DESCRIPTION OF BUSINESS ACTIVITY FAIR MARKET VALUE IF APPLICABLE, LIST DATE: ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 -/_/ 01 ❑ $100,001 - $1,000000 ACQUIRED DISPOSED I , ❑ Over $1,000,000 I NATURE OF INVESTMENT ❑ Sole Proprietorship ❑ Partnership ❑ !YOUR BUSINESS POSITION ❑ $0 - $499 ❑ $10,001 - $100,000 0 S500 - $1,000 ❑ OVER $100,000 ❑ $1,001 - $10,000 Check one box. 0 INVESTMENT ❑ REAL PROPERTY Name of Business Entity or Street Address or Assessor's Parcel Number of Real Property Other Description of Business Activity Q City or Other Precise Location of Real Property FAIR MARKET VALUE IF APPLICABLE, LIST DATE: ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 __./_/01 $100,001 - $1,000,000 ACQUIRED DISPOSED ❑ Over $1,000,000 NATURE OF INTEREST ❑ Property Ownership/Deed of Trust ❑ Stock ❑ Partnership ❑ Leasehold Yrs. remaining ❑ Other OR Name Address Check one ❑ Trust, go to 2 ❑ Business Entity, complete the box, then go to 2 GENERAL DESCRIPTION OF BUSINESS ACTIVITY I I i FAIR MARKET VALUE IF APPLICABLE. LIST DATE: �❑ $2,000 - $10,000 ❑ $10,001 - $100,000 -J_f O1 _�_/ 01 ❑ $100,001 - $1,000,000 ACQUIRED DISPOSED ❑ Over $1,000,000 NATURE OF INVESTMENT ❑ Sole Proprietorship ❑ Partnership ❑ Other YOUR BUSINESS POSITION -• • • •1:§=1911 ❑ $0 - $499 ❑ $10,001 - $100,000 LJ aauU - 4,1,uUo Lf OVER $100,000 ❑ $1,001 - $10,000 Check one box: :]INVESTMENT ❑ REAL PROPERTY Name of Business Entity IZ Street Address or Assessor's Parcel Number of Real Property Description of Business Activity Q City or Other Precise Location of Real Property FAIR MARKET VALUE IF APPLICABLE, LIST DATE: ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 __/_/ 01 _/_ / O1 ❑ $100,001 - $1,000,000 ACQUIRED DISPOSED ❑ Over $1,000,000 NATURE OF INTEREST ] Property Ownership/Deed of Trust ❑ Stock ❑ Partnership ] Leasehold Yrs. remaining ] Other Comments: FPPC Form 700 (2001/2002) Sch. A-2 FPPC Toll -Free Helpline: 866/ASK-FPPC INSTRUCTIONS — SCHEDULE B INTERESTS IN REAL PROPERTY Reportable interests in real property are those properties located in your agency's jurisdiction (see Appendix-8), in which you, your spouse, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more any time during the reporting period. Interests in real property include: • An ownership interest (including a beneficial ownership interest). • A deed of trust, easement, or option to acquire property. • A leasehold interest (see Appendix-8). • A mining lease, such as oil, gas, gold. • An interest in real property held in a retirement account (see Appendix-9). • An interest in real property held by a business entity or trust in which you, your spouse, or your dependent children had a 10% or greater ownership interest (report on Schedule A-2). You may not be required to report: • A residence, such as a home or vacation cabin, used exclusively as a personal residence. However, a residence for which you claim a business deduction may be reportable. In this situation, you may report the portion of the residence claimed as the tax deduction as the fair market value. Interests in real property held through a blind trust (see Appendix-10 for exceptions). TO COMPLETE SCHEDULE B: • Report the address or other precise location, such as an assessor's parcel number, of the real property. • Check the box indicating the fair market value of your interest in the property (regardless of what you owe on the property). • If you acquired or disposed of your interest in the property during the reporting period, enter the date acquired or disposed. • Identify the nature of your interest. If it is a leasehold, also disclose the number of years remaining on the lease. • If you are reporting rental property, check the box indicating the gross rental income you received. • If you had a 10% or greater interest in a rental property, and your pro rata share of the gross rental income from REMINDERS ✓ Income and loans already reported on Schedule B are not also required to be reported on Schedule C or D. ✓ Code filers — Do your disclosure categories require disclosure of real property? a single tenant was $10,000 or more during the reporting period, list the name of the tenant. Loans that total $500 or more and are secured by real property may be reportable. Reportable loans may be disclosed on Schedule B or Schedule D. See instructions for Schedule D for an example and list of exceptions. -- Provide the name and address of the lender. -- Check the box describing the lender's business activity. -- Disclose the interest rate and term of the loan. The term of a loan is the total number of months or years given for repayment of the loan at the time the loan was entered into. For variable interest rate loans, disclose the conditions of the loan, such as Prime + 2, or the average interest rate paid during the reporting period. -- Check the box indicating the highest balance of the loan during the reporting period. -- Identify a guarantor, if applicable. If you have more than one reportable loan on a single piece of real property, report the additional loan(s) on Schedule D. Example: Joe Nelson is a city planning commissioner. Joe received rental income of $12,000 during the reporting period from a single tenant who rented property Joe owned in the city's jurisdiction. If Joe had received the $12,000 from two or more tenants, the tenants' names would not be required as long as no single source paid $10,000 or more. ► STREET ADORES S OR PRECISE LOCATION 4621 Story Way CITY Sacramento, CA 95814 FAIR MARKET VALUE IF AP►LICABLE. LIST DATE. 12200 • $10.000 :10001 • SIDDADD _J_J�1 �J�1 ® f1 00D01 . f1.000.000 ACQUIRED OIfPOfED Over f1,000.000 NATURE OF INTEREST ® 01-81 P-Pony ❑ O+nWSt.WDeed of TNst 6sernent 0 Lsssehod 0 Y.►. wwt OLW IF RENTAL PROPERTY. GROSS INCOME RECEFVW ❑ ID - $we 0 :Boo .:t.000 0 $1.001 . f10=0 ® $10,001 - f10D.OD0 0 O%*R:10D.000 SOURCES OF RENTAL INCOME: If yo„ own A 10% OF grertw r*8re32, 1131 the r1M1! Of eaCh let= thsr R • WVe MCC& Of rcorne Of $10.000 or More Suzette Jones NAME OF LENDER BFF Financial Services ADDRESS 6200 Aspen Drive, Sacramento, CA 95814 BUSINESS ACTIVITY OF LENDER ® hnsnool MiUuien 0 Ot Mr INTEREST RATE TERM (WAmhs/Yews) 8 I< 0 None 15 Years HIGHEST BALANCE DURING REPORTING PERIOD ❑ SSW - f1•000 0 fIADI . vD.DOD 0 fIOD01 . SIDD= 0 MR wo.BDD FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-6 SCHEDULE B Interests in Real Property > STREET ADDRESS OR PRECISE LOCATION CITY FAIR MARKET VALUE IF APPLICABLE, LIST DATE: ❑ $2,000 - $10,000 ❑ $10,001 - $100, 00001 _./� 01 ❑ $100,001 - $1,000,000 ACQUIRED DISPOSED ❑ Over $1,000,000 NATURE OF INTEREST ❑ Rental Property ❑ Ownership/Deed of Trust ❑ Easement ❑ Leasehold ❑ Yrs. remaining Other IF RENTAL PROPERTY, GROSS INCOME RECEIVED ❑ $0 - $499 ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 SOURCES OF RENTAL INCOME: If you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more. NAME OF LENDER ADDRESS BUSINESS ACTIVITY OF LENDER ❑ Financial Institution ❑ Other INTEREST RATE TERM (Months/Years) % ❑ None HIGHEST BALANCE DURING REPORTING PERIOD ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 ❑ Guarantor, if applicable Check below if another loan is disclosed on Schedule D ❑ Additional loan - refer to Sch. D. Comments: > STREET ADDRESS OR PRECISE LOCATION CITY FAIR MARKET VALUE IF APPLICABLE, LIST DATE: ❑ $2,000 - $10,000 ❑ $10,001 - $100,000 �--� 01 01 ❑ $100,001 - $1,000,000 ACQUIRED DISPOSED ❑ Over $1,000,000 NATURE OF INTEREST ❑ Rental Property ❑ Ownership/Deed of Trust ❑ Easement ❑ Leasehold ❑ Yrs. remaining Other IF RENTAL PROPERTY, GROSS INCOME RECEIVED ❑ $0 - $499 ❑ $500 - $1.000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 SOURCES OF RENTAL INCOME: If you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more. NAME OF LENDER ADDRESS BUSINESS ACTIVITY OF LENDER ❑ Financial Institution ❑ Other INTEREST RATE TERM (Months/Years) % ❑ None HIGHEST BALANCE DURING REPORTING PERIOD ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 ❑ Guarantor, if applicable Check below if another loan is disclosed on Schedule D. ❑ Additional loan - refer to Sch. D. FPPC Form 700 (2001/2002) Sch. B FPPC Toll -Free Helpline: 866/ASK-FPPC INSTRUCTIONS — SCHEDULE C INCOME & BUSINESS POSITIONS (Income Other than Loans, Gifts, and Travel Payments) Report the source and amount of gross income received if the amount totals $500 or more and was received from any source located in or doing business in your agency's jurisdiction (see Appendix-8). Gross income is the total amount of income before deducting expenses losses or taxes. Do not use this schedule to report income from or to a business entity in which you have a 10% or greater ownership interest. Use Schedule A-2 instead. Also use Schedule C to report the job title or business position you held with a business entity (for example, if you were a director, officer, partner, trustee, employee, or held any position of management) during the period covered by the report unless you have already reported this position on Schedule A-2. This requirement applies even if you received no income from the business entity during the period. Commonly reportable income includes: • Salary/wages, per diem, reimbursement for expenses. • Community property interest (50%) in your spouse's income - report the employer's name. • Income received from investment interests, such as partnerships, reported on Schedule A-1. • Commission income not required to be reported on Schedule A-2. • Gross income from any sale, including the sale of a house or car. The total sale price is reportable. • Rental income not required to be reported on Schedule B. • Prizes or awards not disclosed as gifts. • Payments received on loans you made to others, including loan repayments from a campaign committee. • An honorarium received by any newly appointed official or newly designated employee in the 12 months prior to assuming office, or for a non -incumbent candidate, in the 12 months prior to filing the candidate statement of economic interests. (See Appendix-7 concerning your ability to receive future honoraria.) You are not required to report: • Salary, reimbursement for expenses and per diem received by you or your spouse from a federal, state, or local government agency. REMINDERS ✓ If you or your spouse is self-employed, report the business entity on Schedule A-2. ✓ Do not disclose on Schedule C income already reported on Schedules A-2 or B or business positions reported on Schedule A-2. • Campaign contributions. • A cash bequest or cash inheritance. • Dividends or interest from, or other return on a security, such as stocks or bonds, which is registered with the Securities and Exchange Commission. • Payments received under an insurance policy. • Interest, dividends, or premiums on a time or demand deposit in a financial institution, shares in a credit union, an insurance policy, or a bond or other debt instrument issued by a government agency. • Income of dependent children. • Automobile trade-in allowances from dealers. • Loan repayments received from your spouse, child, parent, grandparent, grandchild, brother, sister, parent - in -law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin unless he or she was acting as an intermediary or agent for any person not covered by this provision. • Alimony or child support payments. • Payments received under a defined benefit pension plan qualified under IRS Code section 401(a). TO COMPLETE SCHEDULE C: Disclose the name and address of each source of income or each business entity with which you held a business position. Provide a general description of the business activity of the source or business entity (for example, law firm). Disclose the job title or business position, if any, you held with the business entity. If you received $500 or more during the reporting period from a source or business entity, check the box indicating the amount of gross income. Identify the consideration for which the income was received. For income from commission sales, check the box indicating the gross income received and list the name of each source of commission income of $10,000 or more (see Appendix-5). For income from rental property that is not required to be listed on Schedule B, enter "Rental Income" under "Name," check the box indicating the gross income received, and, if you had a 10% or greater interest in the rental property, list the name of each tenant if your pro rata share of the gross income from that tenant was $10,000 or more during the reporting period. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-7 > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE YOUR BUSINESS POSITION GROSS INCOME RECEIVED Q $500 - $1,000 p $1,001 - $10,000 ❑ $10,001 - $100,000 Q OVER $100,000 CONSIDERATION FOR WHICH INCOME WAS RECEIVED Q Salary ❑ Spouse's income ❑ Loan repayment ❑ Sale of (Property, car, boat, etc.) ❑ Commission or ❑ Rental Income, list each source of S10,000 or more Q Other (Describe) > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE YOUR BUSINESS POSITION GROSS INCOME RECEIVED ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 CONSIDERATION FOR WHICH INCOME WAS RECEIVED ❑ Salary ❑ Spouse's income ❑ Loan repayment ❑ Sale of (Property, car, boat, etc.) ❑ Commission or Q Rental Income, list each source of $10,000 or more 0 Other _ Comments: (Describe) SCHEDULE C Income & Business Positions (Income Other than Loans, Gifts, and Travel Payments) > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE YOUR BUSINESS POSITION GROSS INCOME RECEIVED ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100.000 CONSIDERATION FOR WHICH INCOME WAS RECEIVED ❑ Salary ❑ Spouse's income ❑ Loan repayment ❑ Sale of (Property, car, boat. etc.) ❑ Commission or ❑ Rental Income, list each source of S10,000 or more ❑ Other (Describe) > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE YOUR BUSINESS POSITION GROSS INCOME RECEIVED ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 CONSIDERATION FOR WHICH INCOME WAS RECEIVED ❑ Salary ❑ Spouse's income ❑ Loan repayment ❑ Sale of (Property, car, boat, etc.) ❑ Commission or Q Rental Income, list each source of 510,000 or more ❑ Other (Describe) FPPC Form 700 (2001/2002) Sch. C FPPC Toll -Free Helpline: 866/ASK-FPPC INSTRUCTIONS — SCHEDULE D INCOME — LOANS (Received or Outstanding) Loans received or outstanding during the reporting period, which total $500 or more from a single source located in or doing business in your jurisdiction, are reportable (see Appendix-8). Your community property interest in loans received by your spouse also must be reported. See Appendix-8 for important information about loan prohibitions. Commonly reportable loans include: • Real estate loans. Margin accounts. • Automobile loans and automobile leases. • Campaign loans secured by your personal assets or for which you are personally liable. • Student loans. • Credit card and retail installment debts. You are not required to report: • Any loan from a commercial lending institution secured by your principal place of residence, if the loan was made in the lender's regular course of business on terms available to the public without regard to your official status. However, loans on other residences may be reportable. • Loans from a commercial lending institution made in the lender's regular course of business on terms available to the public without regard to your official status that did not total more than $10,000 at any time during the reporting period. • Any retail installment or credit card debts incurred in the creditor's regular course of business on terms available to the public without regard to your official status that did not total more than $10,000 at any time during the reporting period. • Any loan from your spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin or the spouse of any such person, unless the lender was acting as an intermediary or agent for any person not covered by this provision. • Loans made to others. However, repayments may be reportable on Schedule C. • A loan you co -signed for another person unless you made payments on the loan during the reporting period. TO COMPLETE SCHEDULE D: Provide the name and address of the lender. Check the appropriate box describing the lender's business activity. Disclose the interest rate and the term of the loan. -- The term of the loan is the total number of months or years given for repayment of the loan at the time the loan was entered into. -- For variable interest rate loans, disclose the conditions of the loan, such as Prime + 2, or the average interest rate paid during the reporting period. -- The interest rate for an automobile lease is the money factor (found in your lease agreement) multiplied by 24. -- You may report "revolving" as the term of credit card loans from commercial lending institutions or loans against margin accounts with a stock broker. -- If the conditions of a student loan are not known because they will be decided when you finish school, you may report "deferred." Check the box indicating the highest balance of the loan during the reporting period. Identify the security, if any, for the loan. You are not required to disclose on Schedule D loans already reported on Schedules A-2 or B. Example: Colleen Jones is a city council member. She received a $15,000 equity loan on her principal residence from a commercial lending institution which she used to buy an automobile. Because the loan was secured by her principal residence, it is not reportable. REMINDERS ✓ Do you know your agency's jurisdiction? ✓ Did you receive any loans or have loans outstanding during the period covered by this statement? ✓ Code filers — Income includes any loan. Did you receive a loan from an entity or individual required to be reported as a source of income under your disclosure categories? ✓ For loan restrictions, see Appendix-8. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-8 SCHEDULE D Income — Loans (Received or Outstanding) > NAME OF LENDER ADDRESS BUSINESS ACTIVITY OF LENDER ❑ Financial Institution ❑ Other INTEREST RATE TERM (MonthsNears) p None HIGHEST BALANCE DURING REPORTING PERIOD ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 SECURITY FOR LOAN ❑ None ❑ Automobile 0 Personal residence ❑ Real Property Street address City ❑ Guarantor ❑ Other _ (Describe) > NAME OF LENDER ADDRESS BUSINESS ACTIVITY OF LENDER ❑ Financial Institution p Other INTEREST RATE TERM (MonthsNears) % ❑ None HIGHEST BALANCE DURING REPORTING PERIOD ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 SECURITY FOR LOAN ❑ None ❑ Automobile ❑ Personal residence ❑ Real Property Street address City ❑ Guarantor ❑ Other _ (Describe) Comments: I > NAME OF LENDER ADDRESS BUSINESS ACTIVITY OF LENDER ❑ Financial Institution p Other INTEREST RATE TERM (MonthsNears) % ❑ None HIGHEST BALANCE DURING REPORTING PERIOD ❑ $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 SECURITY FOR LOAN ❑ None ❑ Automobile 0 Personal residence ❑ Real Property Street address ❑ Guarantor ❑ Other > NAME OF LENDER ADDRESS City (Describe) BUSINESS ACTIVITY OF LENDER p Financial Institution p Other INTEREST RATE TERM (MonthsNears) p None HIGHEST BALANCE DURING REPORTING PERIOD p $500 - $1,000 ❑ $1,001 - $10,000 ❑ $10,001 - $100,000 ❑ OVER $100,000 SECURITY FOR LOAN ❑ None ❑ Automobile ❑ Personal residence ❑ Real Property Street address ❑ Guarantor ❑ Other City (Describe) FPPC Form 700 (2001/2002) Sch. D FPPC Toll -Free Helpline: 866/ASK-FPPC INSTRUCTIONS - SCHEDULE E INCOME - GIFTS "Gift" means anything of value, for which you have not provided equal or greater consideration to the donor. A gift is reportable if its fair market value is $50 or more. In addition, multiple gifts totaling $50 or more received during the reporting period from a single source must be reported. Gifts are reportable regardless of where the donor is located. It is the acceptance of a gift, not the ultimate use to which it is put, that imposes your reporting obligation. Therefore, except as noted below, you must report a gift even if you never used it or if you gave it away to another person. If the exact amount of a gift is not known, you must make a good faith estimate of the item's fair market value. Listing the value of a gift as "over $50" or "value unknown" is not adequate disclosure. In addition, if you received a gift through an intermediary, you must disclose the name, address, and business activity of both the donor and the intermediary. Commonly reportable gifts include: • Tickets/passes to sporting or entertainment events. • Tickets/passes to amusement parks. • Parking passes. • Food, beverages, and accommodations, including those provided in direct connection with your attendance at a convention, conference, meeting, social event, meal, or like gathering, where you did not give a speech, participate in a panel or seminar, or provide a similar service. • Rebates/discounts not made in the regular course of business to members of the public without regard to official status. • Wedding gifts (see Appendix-10 to determine how to value). • An honorarium. You may report an honorarium as income on Schedule C, rather than as a gift on Schedule E, if you provided services of equal or greater value than the payment received. (See Appendix-7 regarding your ability to receive future honoraria.) Transportation and lodging (see Schedule F). • Forgiveness of a loan received by you. REMINDERS ✓ Gifts are limited by law to a value of $320 from any one source in a calendar year. ✓ See Appendix-7 for additional gift and honoraria prohibitions. ✓ Code filers — You only need to report gifts from reportable sources. You are not required to disclose: • Gifts that were not used and which, within 30 days after receipt, were returned to the donor or delivered to a charitable organization without being claimed by you as a charitable contribution for tax purposes. • Gifts from your spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother-in- law, sister-in-law, aunt, uncle, niece, nephew, or first cousin or the spouse of any such person, unless the donor was acting as an agent or intermediary for a reportable source who was the true donor. • Gifts of hospitality involving food, drink, or occasional lodging provided in an individual's home when the individual or a member of the individual's family was present. • Gifts equal in value exchanged between you and an individual, other than a lobbyist, on holidays, birthdays, or similar occasions. • Gifts of informational material provided to assist you in the performance of your official duties, such as books, pamphlets, reports, calendars, periodicals, or educational seminars. • A cash bequest or cash inheritance. • Personalized plaques and trophies with an individual value of less than $250. • Campaign contributions. • Tickets to a fundraising event for an IRS Code section 501(c)(3) organization. • Tickets to political fundraisers. • Gifts given directly to members of your immediate family unless you received direct benefit from the gift or you exercised direction and control over the use or disposition of the gift. • A pass or ticket that provided a one-time admission to an event (theater performance, sporting event) that was not used and was not transferred to another person. Commission Regulation 18946.1 provides a method for determining the value of a ticket or pass that was used or transferred to another person and for determining the value of passes or tickets which provide repeated admission to facilities or services. Food, beverages, and necessary accommodations provided directly in connection with an event at which you gave a speech, participated in a panel or seminar, or provided a similar service. TO COMPLETE SCHEDULE E: Disclose the name, address and business activity, if any, of the source. Describe the gift and provide the fair market value of the gift and the date (month, day, and year) of receipt. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-9 SCHEDULE E Income — Gifts > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE DESCRIPTION OF GIFT(S) VALUE DATE $ $ -/-/ $ _J_J > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE DESCRIPTION OF GIFT(S) VALUE DATE $ $ $ > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE DESCRIPTION OF GIFT(S) VALUE DATE $ $ $ Comments: > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE DESCRIPTION OF GIFT(S) VALUE DATE $ $ > NAME OF SOURCE ADDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE DESCRIPTION OF GIFT(S) VALUE DATE $ —/—1 $ $ AME OF SOURCE DDRESS BUSINESS ACTIVITY, IF ANY, OF SOURCE ESCRIPTION OF GIFT(S) VALUE DATE $ $ FPPC Form 700 (2001/2002) Sch. E FPPC Toll -Free Helpline: 866/ASK-FPPC INSTRUCTIONS - SCHEDULE F TRAVEL PAYMENTS, ADVANCES AND REIMBURSEMENTS Travel payments reportable on Schedule F include advances and reimbursements for travel and related expenses, including lodging and meals. Gifts of travel may be subject to a $320 gift limit. In addition, certain travel payments are reportable gifts, but are not subject to the gift limit. To avoid possible misinterpretation or the perception that you may have received a gift in excess of the gift limit, you may wish to provide a specific description of the purpose of your travel. See the FPPC fact sheet entitled "Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans," which can be obtained from your filing officer or the FPPC at www.fppc.ca.gov. You are not required to disclose: • Travel payments received from any state, local, or federal government agency for which you provided services equal or greater in value than the payments received. • Travel payments received from your employer in the normal course of your employment. • Payments or reimbursements for transportation within California in connection with an event at which you gave a speech, participated in a panel or seminar, or performed a similar service. • Food, beverages, and necessary accommodations received directly in connection with an event held inside or outside California at which you gave a speech, participated in a panel, or provided a similar service. Note that payments for transportation outside of California are reportable. • A travel payment that was received from a nonprofit entity exempt from taxation under IRS Code section 501(c)(3) for which you provided equal or greater consideration. TO COMPLETE SCHEDULE F: Disclose the name and address of the source of the travel payment. • Identify the business activity, if any, of the source. • Check the box to indicate if the payment was a gift or income, report the amount, and disclose the date(s) if applicable. -- Travel payments are gifts if you did not provide services that were equal to or greater in value than the payments received. You must disclose gifts totaling $50 or more from a single source during the period covered by the statement. Gifts of travel are reportable without regard to where the donor is located. When reporting travel payments that are gifts, you must provide a description of the gift and the date(s) received. -- Travel payments are income if you provided services that were equal to or greater in value than the payments received. You must disclose income totaling $500 or more from a single source during the period covered by the statement. The filer has the burden of proving the payments are income rather than gifts. When reporting travel payments as income, you must describe the services you provided in exchange for the payment. You are not required to disclose the date(s) for travel payments that are income. Example: City council member Rick Chandler is a board member of the League of California Cities. The League reimburses its board members for travel and lodging, as well as meals and other expenses associated with board meetings. If Mr. Chandler provides equal or greater consideration for the travel and lodging when he participates in the meeting, the reimbursements are reported as income. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Instructions-10 SCHEDULE F Income — Gifts Travel Payments, Advances, and Reimbursements > NAME OF SOURCE > NAME OF SOURCE ADDRESS ADDRESS CITY AND STATE CITY AND STATE BUSINESS ACTIVITY, IF ANY, OF SOURCE BUSINESS ACTIVITY, IF ANY, OF SOURCE TYPE OF PAYMENT: (check one) Gift Income AMT $ DATE(S): _J—J (I/ applicable) DESCRIPTION: > NAME OF SOURCE ADDRESS CITY AND STATE BUSINESS ACTIVITY, IF ANY, OF SOURCE TYPE OF PAYMENT: (check one) Gift Income AMT $ DATE(S): (if applicable) DESCRIPTION: > NAME OF SOURCE ADDRESS CITY AND STATE BUSINESS ACTIVITY, IF ANY, OF SOURCE TYPE OF PAYMENT: (check one) Gift Income AMT. $ DATE(S): _/_/ _/_ J (I/ applicable) DESCRIPTION: Comments: TYPE OF PAYMENT: (check one) (� Gift Income AMT $ DATE(S): (If applicable) DESCRIPTION: > NAME OF SOURCE ADDRESS CITY AND STATE BUSINESS ACTIVITY, IF ANY, OF SOURCE TYPE OF PAYMENT: (check one) Gift Income AMT $ DATE(S): (if applicable) DESCRIPTION: > NAME OF SOURCE ADDRESS CITY AND STATE BUSINESS ACTIVITY, IF ANY, OF SOURCE TYPE OF PAYMENT: (check one) Gift Income AMT $ DATE(S): (11 applicable) DESCRIPTION: FPPC Form 700 (2001/2002) Sch. F FPPC Toll -Free Helpline: 666/ASK-FPPC APPENDIX TWO CATEGORIES OF FILERS 1. Officials and Candidates Specified in Gov. Code Section 87200 The Act requires the following individuals to fully disclose their personal assets and income described in the attached Form 700: State Offices • Governor • Lieutenant Governor • Attorney General • Controller • Insurance Commissioner • Secretary of State • Treasurer • Members of the State Legislature • Superintendent of Public Instruction • State Board of Equalization Members • Public Utilities Commissioners • State Energy Resources Conservation and Development Commissioners • State Coastal Commissioners • Fair Political Practices Commissioners • State Public Officials (including employees and consultants) Who Manage Public Investments • Elected Members of the Board of Administration of the California Public Employees' Retirement System Other officials and employees of state boards, commissions, agencies, and departments file Form 700 as described in part 2 on this page. Judicial Offices • Supreme, Appellate, and Superior Court Judges • Court Commissioners • Retired Judges, Pro-Tem Judges, and part- time Court Commissioners who serve or expect to serve 30 days or more in a calendar year County and City Offices • Members of Boards of Supervisors • Mayors and Members of City Councils • Chief Administrative Officers • District Attorneys • County Counsels • City Attorneys • City Managers • Planning Commissioners • County and City Treasurers • County and City Public Officials (including employees and consultants) Who Manage Public Investments 2. State and Local Officials and Employees Designated in a Conflict -of -Interest Code The Act requires every state and local government agency to adopt a conflict -of -interest code. The code lists each position within the agency filled by individuals who make or participate in making governmental decisions that could affect their personal financial interests. The code also requires individuals holding those positions to periodically file Form 700 disclosing certain personal financial interests. These individuals are called "designated employees" or "code filers." In addition, certain consultants to public agencies may qualify as public officials because they make, participate in making, or act in a staff capacity for governmental decisions. Obtain the consultant fact sheet from the FPPC for more information. Each conflict -of -interest code is unique and contains "disclosure categories" setting out the specific types of interests employees in each designated position must disclose. Obtain your disclosure categories from your agency — they are not contained in the Form 700. Persons with broad decisionmaking authority must disclose more interests than those in positions with limited discretion. For example, you may be required to disclose only investments and business positions in or income from businesses of the type that contract with your agency, or you may not be required to disclose real property interests. Note: • An official who holds a position specified in Gov. Code section 87200 is not required to file statements under the conflict -of -interest code of any agency that has the same or a smaller jurisdiction (for example, a state legislator who also sits on a state or local board or commission). FPPC Form 700 (200112002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-1 TYPES OF STATEMENTS Assuming Office Statement: If you are a newly elected or newly appointed official or are newly employed in a position designated in a state or local agency's conflict -of - interest code, your assuming office date is the date you were sworn in, employed, or otherwise authorized to serve in the position. For positions subject to confirmation by the State Senate or the Commission on Judicial Performance, your assuming office date is the date you were appointed or nominated to the position. Investments, interests in real property, and business positions held on the date you assumed the office or position must be reported. In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the date you assumed the office or position is reportable. Initial Statement: If your office or position has been added to a newly adopted or newly amended conflict -of - interest code, use the effective date of the code or amendment, whichever is applicable. Investments, interests in real property, and business positions held on the effective date of the code or amendment must be reported. In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the effective date of the code or amendment is reportable. Annual Statement: Generally, the period covered is January 1, 2001, through December 31, 2001. If the period covered by the statement is different than January 1, 2001, through December 31, 2001 (for example, you assumed office between October 1, 2000 and December 31, 2001, or you are combining statements), the period covered must be specified. • Investments, interests in real property, business positions held and income (including loans, gifts, and travel payments) received during the period covered by the statement must be reported. Leaving Office Statement: Generally, the period covered is January 1, 2001, through the date you left office. If the period covered is different than January 1, 2001, through the date you left office (for example, you assumed office between October 1, 2000 and December 31, 2000, or you are combining statements), the period covered must be specified. • Investments, interests in real property, business positions held and income (including loans, gifts, and travel payments) received during the period covered by the statement must be reported. Candidate Statement: If you are filing a statement in connection with your candidacy for state or local office, investments, interests in real property, and business positions held on the date of filing your declaration of candidacy must be reported. In addition, income (including loans, gifts, and travel payments) received during the 12 monthsprior to the date of filing your declaration of candidacy is reportable. Amendments: If you discover errors or omissions on any statement, an amendment should be filed as soon as possible. To obtain amendment schedules, contact the FPPC, your filing official, or the FPPC website at www.fppc.ca.gov. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-2 WHERE TO FILE 1. Officials Specified in Gov. Code Section 87200 (listed in column 1 on Appendix-1): In most cases, the filing officials listed .below will retain a copy of your statement and forward the original to the FPPC. 87200 Filers Where to File State offices Your agency Judicial offices The clerk of your court Retired Judges Directly with FPPC County offices Your county clerk City offices Your city clerk Multi -County offices Your agency Exception: File Form 700 Candidate Statements with the registrar of voters or other city/county official with whom you file your declaration of candidacy. 2. Code Filers — State and Local Officials and Employees Designated in a Conflict -of -Interest Code: File with your agency, board, or commission unless it is otherwise specified in your agency's conflict -of - interest code. In most cases, the agency, board, or commission will retain the statements. State Senate and Assembly staff members file statements directly with the FPPC. WHEN TO FILE Assuming Office and Initial Statements: Filer Deadline Elected officials 30 days after assuming office Appointed positions 30 days after assuming specified in Gov. office Code section 87200 or (listed in column 1 10 days after appoint - on Appendix-1) ment or nomination if subject to Senate or judicial confirmation Other appointed 30 days after assuming positions (including office (30 days after newly hired employ- appointment or nomina- ees) designated in a tion if subject to Senate conflict -of -interest code confirmation) Positions newly- 30 days after the added to a new or effective date of the amended conflict- code or amendment of -interest code Exceptions: • Elected state officers who assume office in December or January are not required to file an assuming office statement, but will file the next annual statement due. • If you complete a term of office and, within 30 days, begin a new term of the same office (for example, you are reelected or reappointed), you are not required to file an assuming office statement. Instead, you may file the next annual statement due. • If you leave an office specified in Gov. Code section 87200 and, within 30 days, you assume another office or position specified in section 87200 that has the same jurisdiction (for example, a city planning commissioner elected mayor), you are not required to file an assuming office statement. Instead, you may file the next annual statement due. • If you transfer from one designated position to another designated position within the same agency, contact your filing officer or the FPPC to determine your filing obligations. FPPC Form 700 (200112002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-3 WHEN TO FILE Continued Annual Statements: 1. Elected state officers (including members of the State Legislature and Members elected to the Board of Administration of the California Public Employees' Retirement System); Judges and court commissioners; and Members of state boards and commissions specified in Gov. Code section 87200 (listed in column 1 on Appendix-1): File no later than Friday, March 1, 2002. 2. County and city officials specified in Gov. Code section 87200: File no later than Monday, April 1, 2002.* 3. Multi -County officials: File no later than Monday, April 1, 2002.' `Since the April 1 filing deadline falls on an official state holiday, the deadline extends to Tuesday, April 2. 4. State and local officials and employees designated in a conflict -of -interest code: File on the date prescribed in the code (April 1 for most filers). Exception: If you assumed office between October 1, 2001, and December 31, 2001, and filed an assuming office statement, you are not required to file an annual statement until March 1, 2003, or April 1, 2003, whichever is applicable. The annual statement will cover the day after you assumed office through December 31, 2002. Incumbent officeholders who file candidate statements also must file annual statements by the specified deadlines. Leaving Office Statements: Leaving office statements must be filed no later than 30 days after leaving the office or position. Exceptions: If you complete a term of office and, within 30 days, begin a new term of the same office (for example, you are reelected or reappointed), you are not required to file a leaving office statement. Instead, you may file the next annual statement due. If you leave an office specified in Gov. Code section 87200 and, within 30 days, you assume another office or position specified in section 87200 that has the same jurisdiction (for example, a city planning commissioner elected mayor), you are not required to file a leaving office statement. Instead, you may file the next annual statement due. • If you transfer from one designated position to another designated position within the same agency, contact your filing officer or the FPPC to determine your filing obligations. Candidate Statements: All candidates (including incumbents) for offices specified in Gov. Code section 87200 must file statements no later than the final filing date for their declaration of candidacy. Exceptions: • If you have filed an assuming office or annual statement for the same jurisdiction within 60 days before filing a declaration of candidacy, you are not required to file a candidate statement. • For elective offices designated in an agency's conflict -of -interest code, you must file a candidate statement only if the code specifically requires one to be filed. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-4 TERMS & DEFINITIONS The instructions located on the back of each schedule describe the types of interests that must be reported. The purpose of this section is to explain other terms used in this form that are not defined in the instructions to the schedules or elsewhere. Blind Trust: See Trusts, Appendix-10. Business Entity: Any organization or enterprise operated for profit, including a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, or association. This would include a business for which you take business deductions for tax purposes, such as a small business operated in your home. Code Filer: An individual who has been designated in a state or local agency's conflict -of -interest code to file statements of economic interests. Commission Income: "Commission income" means gross payments received as a broker, agent, or salesperson, including insurance brokers or agents, real estate brokers or agents, travel agents or salespersons, stockbrokers, and retail or wholesale salespersons, among others. You may be required to disclose the names of sources of commission income if your pro rata share of the gross income was $10,000 or more from a single source during the reporting period. If your spouse received commission income, you would disclose your community property share (50%) of that income (for example, the names of sources of $20,000 or more in gross commission income received by your spouse). Report commission income as follows: • If the income was received through a business entity in which you or your spouse had a 10% or greater ownership interest (or you were an independent contractor or agent), use Schedule A-2. • If the income was received through a business entity in which you or your spouse had no ownership interest or less than a 10% ownership interest, use Schedule C. The "source" of commission income generally includes all parties to a transaction, and each is attributed the full value of the commission. For example, you are a partner in Smith and Jones Insurance Company and have a 50% ownership interest in the company. You sold two Businessmen's Insurance Company policies to XYZ Company during the reporting period. You received commission income of $5,000 from the first transaction and $6,000 from the second. On Schedule A-2, report your partnership interest in and income received from Smith and Jones Insurance Company in parts 1 and 2. In part 3, list both Businessmen's Insurance Company and XYZ Company as sources of $10,000 or more in commission income. Note: If your pro rata share of commission income from a single source is $500 or more, you may be required to disqualify yourself from decisions affecting that source of income, even though you are not required to report the income. Conflict of Interest: A public official or employee has a conflict of interest under the Act when all of the following occur: • The official makes, participates in making, or uses his or her official position to influence a governmental decision; • It is reasonably foreseeable that the decision will affect the official's economic interest; • The effect of the decision on the official's economic interest will be material; and • The effect of the decision on the official's economic interest will be different than its effect on the public generally. Conflict -of -Interest Code: The Act requires every state and local government agency to adopt a conflict -of -interest code. The code may be contained in a regulation, policy statement, or a city or county ordinance. An agency's conflict -of -interest code must designate all officials and employees of, and consultants to, the agency who make or participate in making governmental decisions that could cause conflicts of interest. These individuals are required by the code to file statements of economic interests and to disqualify themselves when conflicts of interest occur. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-5 The disclosure required under a conflict -of -interest code for a particular designated official or employee should include only the kinds of personal economic interests he or she could significantly affect through the exercise of his or her official duties. For example, an employee whose duties are limited to reviewing contracts for supplies, equipment, materials, or services provided to the agency should be required to report only those interests he or she holds that are likely to be affected by the agency's contracts for supplies, equipment, materials, or services. Consultant: An individual who contracts with or whose employer contracts with state or local government agencies and who makes, participates in making, or acts in a staff capacity for making governmental decisions. Consultants may be required to file Form 700. The obligation to file Form 700 is always imposed on the individual who is providing services to the agency, not on the business or firm that employs the individual. Designated Employee: An official or employee of a state or local government agency whose position has been designated in the agency's conflict -of -interest code to file statements of economic interests. Individuals who contract with government agencies (consultants) also may be designated in a conflict -of - interest code. Disclosure Categories: The section of an agency's conflict -of -interest code that specifies the types of personal economic interests officials and employees of the agency must disclose on their statements of economic interests. Disclosure categories are usually contained in an appendix or attachment to the conflict -of -interest code. Contact your agency to get a copy of your disclosure categories. Diversified Mutual Fund: Diversified portfolios of stocks, bonds, or money market instruments that are managed by investment companies whose business is pooling the money of many individuals and investing it to seek a common investment goal. Mutual funds are managed by trained professionals who buy and sell securities. A typical mutual fund will own between 75 to 100 separate securities at any given time so they also provide instant diversification. Only diversified mutual funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 are exempt from disclosure. Elected State Officer: Elected state officers include the Governor, Lieutenant Governor, Attorney General, Insurance Commissioner, State Controller, Secretary of State, State Treasurer, Superintendent of Public Instruction, members of the State Legislature, members of the State Board of Equalization, and elected members of the Board of Administration of the California Public Employees' Retirement System. Enforcement: The FPPC investigates suspected violations of the Act. Other law enforcement agencies (the Attorney General or district attorney) also may initiate investigations under certain circumstances. If violations are found, the Commission may initiate administrative enforcement proceedings that could result in the imposition of monetary penalties of up to $5,000 per violation. Instead of administrative prosecution, a civil action may be brought for negligent or intentional violations by the appropriate civil prosecutor (the Commission, Attorney General, or district attorney), or a private party residing within the jurisdiction. In civil actions, the measure of damages is up to the amount or value not properly reported. Persons who violate the conflict of interest disclosure provisions of the Act also can be subject to discipline by their agency, including dismissal. Finally, a knowing or willful violation of any provision of the Act is a misdemeanor. Persons convicted of a misdemeanor may be disqualified for four years from the date of the conviction from serving as a lobbyist or running for elective office, in addition to other penalties that may be imposed. The Act also provides for numerous civil penalties, including monetary penalties and damages, and injunctive relief from the courts. Expanded Statement: Some officials or employees may have multiple filing obligations (for example, a city councilperson who also holds a designated position with a county agency, board, or commission). Such officials or employees may complete one "expanded" statement, Form 700, covering the disclosure requirements for all positions and file a complete, originally signed copy with each agency. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-6 Fair Market Value: When reporting the value of an investment, interest in real property, or gift, you must disclose the fair market value — the price at which the item would sell for on the open market. This is particularly important when valuing gifts, because the fair market value of a gift may be different from the amount it cost the donor to provide the gift. For example, the wholesale cost of a bouquet of flowers may be $10, but the fair market value may be $25 or more. In addition, there are special rules for valuing free tickets and passes. Call the FPPC for assistance. Gift and Honoraria Prohibitions: Gifts: State and local officials who are listed in Gov. Code section 87200, (except judges, see below), candidates for those elective offices (including judicial candidates), and officials and employees of state and local government agencies who are designated in a conflict -of -interest code are prohibited from accepting a gift or.gifts totaling more than $320 in a calendar year from a single source. In addition, elected state officers, candidates for elective state offices, and officials and employees of state agencies are subject to a $10 per calendar month limit on gifts from lobbyists and lobbying firms registered with the Secretary of State. Honoraria: State and local officials who are listed in Gov. Code section 87200, (except judges, see below), candidates for those elective offices (including judicial candidates), and employees of state and local government agencies who are designated in a conflict -of -interest code are prohibited from accepting honoraria for any speech given, article published, or attendance at any public or private conference, convention, meeting, social event, meal, or like gathering. Exceptions: • Some gifts are not reportable or subject to the gift and honoraria prohibitions, and other gifts may not be subject to the prohibitions but are reportable. For detailed information, see the FPPC fact sheet entitled "Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans," which can be obtained from your filing officer or the FPPC. • The $320 gift limit and honorarium prohibition do not apply to a part-time member of the governing board of a public institution of higher education, unless the member is also an elected official. If you are designated in a state or local government agency's conflict -of -interest code, the $320 gift limit and honorarium prohibition are applicable only to sources you would otherwise be required to report on your statement of economic interests. However, this exception is not applicable if you also hold a position listed in Gov. Code section 87200 (see Appendix-1). For state agency officials and employees, the $10 lobbyist/lobbying firm gift limit is applicable only to lobbyists and lobbying firms registered to lobby your agency. This exception is not applicable if you are an elected state officer or a member or employee of the State Legislature. Judges: Section 170.9 of the Code of Civil Procedure imposes gift limits on judges and prohibits judges from accepting any honorarium. Section 170.9 is enforced by the Commission on Judicial Performance. The FPPC has no authority to interpret or enforce the Code of Civil Procedure. Income Reporting: Reporting income under the Act is different than reporting income for tax purposes. The Act requires gross income (the amount received before deducting losses, expenses, or taxes) to be reported. Pro Rata Share: The instructions for reporting certain types of income, such as business entity income and rental income, refer to your pro rata share of the income received. Your pro rata share is normally based on your ownership interest in the entity or property. For example, if you are a sole proprietor, you must disclose 100% of the gross income received by your business entity on Schedule A-2. If you own 25% of a piece of rental property, you must report 25% of the gross rental income received. When you are required to report sources of income to a business entity, sources of rental income, or sources of commission income, you are only required to disclose individual sources of income of $10,000 or more. However, you may be required to disqualify yourself from decisions affecting sources FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-7 of $500 or more in income, even though you are not required to report them. Jurisdiction: As a public official or employee required to file statements of economic interests, you must disclose investments and sources of income that are located in or doing business in your jurisdiction, and interests in real property located in your jurisdiction. A business entity is located in or doing business in your jurisdiction if the entity has business contacts on a regular or substantial basis with a person who maintains a physical presence in your jurisdiction. Business contacts include, but are not limited to, manufacturing, distributing, selling, purchasing, or providing services or goods. Business contacts do not include marketing via the Internet, telephone, television, radio, or printed media. (FPPC Regulation 18230, effective February 1, 2001.) The same criteria are used to determine whether an individual, organization, or other entity is located in or doing business in your jurisdiction. Exception: • Gifts are reportable regardless of the location of the donor. For example, a state agency official with full disclosure must report gifts from sources located outside of California. (Designated employees should consult their disclosure categories to determine if the donor of a gift is of the type that must be disclosed.) For reporting interests in real property, if your jurisdiction is the state, you must disclose real property located anywhere within the state of California. For local agencies, an interest in real property is located in your jurisdiction if any part {of the property is located in, or within two miles of, the region, city, county, district, or other geographical area in which the agency has jurisdiction, or if the property is located within two miles of any land owned or used by the agency. See the following explanations to determine what your jurisdiction is: State Offices and All Courts: Your jurisdiction is the state if you are an elected state officer, a state legislator, a judge, a court commissioner, or a candidate for one of these offices. If you are an official or employee of, or a consultant to, a state board, commission, or agency, or of any court or the State Legislature, your jurisdiction is also the state. County Offices: Your jurisdiction is the county if you are an elected county officer, a candidate for county office, or if you are an official or employee of, or a consultant to, a county agency or any agency with jurisdiction solely within a single county. City Offices: Your jurisdiction is the city if you are an elected city officer, a candidate for city office, or you are an official or employee of, or a consultant to, a city agency or any agency with jurisdiction solely within a single city. Multi-Countv Offices: If you are an elected officer, candidate, official or employee of, or a consultant to, a multi -county agency, your jurisdiction is the region, district, or other geographical area in which the agency has jurisdiction. (Example: A water district has jurisdiction in a portion of two counties. Members of the board are only required to report interests located or doing business in that portion of each county in which the agency has jurisdiction.) Other (for example school districts and special districts): If you are an elected officer, candidate, official or employee of, or a consultant to, an agency not covered above, your jurisdiction is the region, district, or other geographical area in which the agency has jurisdiction. See the multi -county example above. Leasehold Interest: The term "interest in real property" includes leasehold interests. An interest in a lease on real property is reportable if the value of the leasehold interest is $2,000 or more. The value of the interest is the total amount of rent owed by you during the reporting period or for a candidate, assuming office, or initial statement, during the prior 12 months. You are not required to disclose a leasehold interest with a value of less than $2,000 or a month -to -month tenancy. Loans: State and local elected and appointed officials and employees are prohibited from receiving any personal loan totaling more than $250 from an official, employee, or consultant of their governmental agencies or any governmental agency FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-8 over which the official or the official's agency has direction or control. In addition, loans of more than $250 from any person who has a contract with the official's agency or an agency under the official's control are prohibited unless the loan is from a commercial lending institution or part of a retail installment or credit card transaction made in the regular course of business on terms available to members of the public. State and local elected officials also are prohibited from receiving any personal loan of $500 or more unless the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, the date, amount, and term of the loan, the date or dates when payments are due, the amount of the payments, and the interest rate on the loan. Campaign loans and loans from family members are not subject to the $250 and $500 loan prohibitions. A personal loan made to a public official that is not being repaid or is being repaid below certain amounts will become a gift to the official under certain circumstances. Contact the FPPC for further information. Privileged Information: You are not required to disclose on Schedule A-2, Part 3, the name of a person who paid fees or made payments to a business entity if disclosure of the name would violate a legally recognized privilege under California law. For example, a name is protected by attorney - client privilege when facts concerning an attorney's representation of an anonymous client are publicly known and those facts, when coupled with disclosure of the client's identity, might expose the client to an official investigation or to civil or criminal liability. A patient's name is protected by physician -patient privilege when disclosure of the patient's name would also reveal the nature of the treatment received by the patient because, for example, the physician is recognized as a specialist. FPPC Regulation 18740 sets out specific procedures that must be followed in order to withhold the name of a source of income. Public Officials Who Manage Public Investments: Individuals who invest public funds in revenue - producing programs must file Form 700. This includes individuals who direct or approve investment transactions, formulate or approve investment policies, and establish guidelines for asset allocations. FPPC Regulation 18701 defines "public officials who manage public investments" to include the following: • Members of boards and commissions, including pension and retirement boards or commissions, and committees thereof, who exercise responsibility for the management of public investments; • High-level officers and employees of public agencies who exercise primary responsibility for the management of public investments, such as chief or principal investment officers or chief financial managers; and • Individuals who, pursuant to a contract with a state or local government agency, perform the same or substantially all the same functions described above. Retirement Accounts (for example, deferred compensation and individual retirement accounts (IRAs)): Assets held in retirement accounts must be disclosed if the assets are reportable items, such as common stock (investments) or real estate (interests in real property). The most common reportable and non - reportable investments are listed on the instructions for Schedules A-1 and A-2. The most common reportable and non -reportable interests in real property are listed on the instructions for Schedule B. If your retirement account holds reportable assets, only disclose the assets held in the account, not the account itself. Schedule A-1: Report any business entity in which the value of your investment interest was $2,000 or more during the reporting period. (Use Schedule A-2 if you have a 10% or greater ownership interest in the business entity.) Schedule B: Report any piece of real property in which the value of your interest was $2,000 or more during the reporting period. Examples: • Alice McSherry deposits $500 per month into her employer's deferred compensation program. She has chosen to purchase shares in two diversified FPPC Forrn 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-9 mutual funds registered with the Securities and Exchange Commission. Because her funds are invested solely in non -reportable mutual funds (see Schedule A-1 instructions), Alice has no disclosure requirements with regard to the deferred compensation program. Bob Allison has $6,000 in an individual retirement account with an investment firm. He has chosen to purchase common stock in several companies doing business in his jurisdiction. One of his stock holdings, Gala Computers, reached a value of $2,500 during the reporting period. The value of his investment in each of the other companies was less than $2,000. Bob must report Gala Computers as an investment on Schedule A-1 because the value of his stock in that company was $2,000 or more. Adriane Fisher has $5,000 in a retirement fund that invests in real property located in her jurisdiction. The value of her interest in each piece of real property held in the fund was less than $2,000 during the reporting period. Although her retirement fund holds reportable assets, she has no disclosure requirement because she did not have a $2,000 or greater interest in any single piece of real property. If, in the future, the value of her interest in a single piece of real property reaches or exceeds $2,000, she will be required to disclose the real property on Schedule B for that reporting period. Trusts: Investments and interests in real property held by a trust (including a living trust) are reported on Schedule A-2 if you, your spouse, or your dependent children had a 10% or greater interest in the trust and your pro rata share of a single investment or interest in real property was $2,000.or more. You have an interest in a trust if you are a trustor and: • Can revoke or terminate the trust; • Have retained or reserved any rights to the income or principal of the trust or retained any reversionary or remainder interest; or • Have retained any power of appointment, including the power to change the trustee, or the beneficiaries. Or you are a beneficiary and: • Presently receive income; or Have an irrevocable future right to receive income or principal. (See FPPC Regulation 18234 for more information.) Blind Trusts: A blind trust is a trust managed by a disinterested trustee who has complete discretion to purchase and sell assets held by the trust. If you have a direct, indirect, or beneficial interest in a blind trust, you may not be required to disclose your pro rata share of the trust's assets or income. However, the trust must meet certain standards which are set out in FPPC Regulation 18235, and you must disclose reportable assets originally transferred into the blind trust and income from those original assets until they have been disposed of by the trustee. Trustees: If you are only a trustee, you do not have a reportable interest in the trust. However, you may be required to report the income you received from the trust for performing trustee services. Wedding Gifts: Wedding gifts must be disclosed if they were received from a reportable source during the period covered by the statement. Gifts valued at $50 or more are reportable; however, a wedding gift is considered a gift to both spouses equally. Therefore, you would count one-half of the value of a wedding gift to determine if it is reportable and need only report individual gifts with a total value of $100 or more unless a particular gift can only be used by you or is intended only for your use. For example, you receive a placesetting of china valued at $150 from a reportable source as a wedding gift. Because the value to you is $50 or more, you must report the gift on Schedule E but may state its value as $75. Wedding gifts are not subject to the $320 gift limit, but they are subject to the $10 lobbyist/lobbying firm gift limit for state officials. FPPC Form 700 (2001/2002) FPPC Toll -Free Helpline: 866/ASK-FPPC Appendix-10 �a�man Ratings Process Under Review: Direction Uncertain United States With higher credit risk among corporate issuers and investors' growing demand for forward -looking credit opinions from the rating agencies, both Moody's and S&P recently released reports outlining actual and proposed changes to their rating methodologies. Below, we list some of the questions investors are likely to have about the implications of amended rating agency policies on the short-term debt markets. We explore these ideas in the body of this report. What Potential Changes in Rating Agency Policies Could Mean for the Short -Term Debt Markets • Will there be a reduction in the volume of short-term borrowing? • What are the potential effects on liquidity and price/spread volatility? • Will there be room for only the very highest quality credits in the commercial paper market? • Could a commercial paper market sector develop for companies rated below A-2/P-2? • Is there potential for an increase in large asset -backed commercial paper programs and a decline in the number of traditional corporate issuer programs? • How will investors balance their own due diligence with the newly proposed rating guidelines? • Will investors require greater transparency for issuers' contingent liquidity arrangements? United States Ratings Process Under Review: Direction Uncertain What the Proposed Policy Changes by the Rating Agencies Could Mean for the Debt Markets Moody's With higher credit risk among corporate issuers and investors' growing demand for forward -looking credit opinions from the rating agencies, both Moody's and S&P recently released reports outlining actual and proposed changes to their rating methodologies. In a recent report entitled "The Bond Rating Process in a Changing Environment, " Moody's outlined what it called a "preliminary discussion of possible future adjustments" to its current rating system in an effort to improve the timeliness of its ratings. Moody's notes that the development "may introduce greater rating volatility. " Broad areas of focus for Moody's are market data, rating triggers, liquidity analysis, and rating outlook suitability Market data - new tools for Moody's analysts. Moody's said it has invested in technology "to obtain and extract the information content of current market data," thus allowing it to compare its rating levels with those implied by the different market indexes. The agency said that its objective in introducing market -based tools is to "identify where there are material and systematic gaps" between its fundamental ratings and the ratings that the market data imply. Focus on rating triggers. Moody's has launched a comprehensive survey of rating triggers in all financial and operating contracts of rated issuers. The agency plans to discuss ratings triggers with issuers (because triggers are not always disclosed publicly) and incorporate the results of this research in its ratings. Enhanced liquidity analysis. Moody's plans to publish its assessments of liquidity risk for approximately 300 commercial paper issuers and expand coverage of these evaluations to include all commercial paper issuers in the US and European commercial paper markets. Moody's is expanding commercial paper coverage so that it can respond to (1) investor concerns about the lower level of liquidity available to corporate issuers and (2) the perception that alternative liquidity supporting commercial paper programs has declined in recent years. Future enhancements to the rating system. Moody's said that it is considering amendments to the process that it uses in conducting rating changes. When the agency considered changing a rating in the past, members of the rating committee met with the issuer at least once to allow the issuer to respond to the concerns or opportunities underlying the review. However, the time it takes for issuers to provide Moody's with detailed information has occasionally led to prolonged ratings reviews. In addition to meeting with issuers, Moody's said its process of modifying ratings outlooks in advance of formal rating reviews might delay rating changes. Goldman Sachs Fixed Income Research Ratings Process Under Review: Direction Uncertain United States Specific measures that Moody's is considering In its January 22, 2002, report, Moody's stated that it is "considering a number of measures that could create greater alignment in the pace of rating changes with the pace of credit changes." These measures, which the agency said could increase the volatility of its ratings, could include the following: • Shortening ratings reviews by compressing the review period when necessary to keep pace with changes in credit quality; • Permitting more -responsive actions following the release of material news; • Tolerating an increased incidence of rating changes without formal rating reviews; and • Streamlining the process for establishing rating outlooks or, potentially, eliminating rating outlooks altogether. Next steps Moody's said that it has formed no conclusion about the appropriate course of action with respect to changes in its rating process. It plans to solicit comments from various market participants in the coming weeks on its proposed changes. Standard & Poor's On January 25, 2002, S&P published a reported entitled "Credit Policy Update: Changes to Ratings Process Address Economic Conditions and Market Needs" to discuss potential changes in its ratings process. In S&P's view, the need to communicate credit opinions more frequently has intensified as a result of (1) the current phase of the credit cycle, (2) significant dislocations in the competitive or operating environments of several industry sectors, and (3) the increased incident of credit volatility among investment -grade -level credits. Modifications at S&P include a shorter publishing cycle, intensified surveillence, and a review of ratings triggers Shorter publishing cycle. S&P has already implemented one significant change - shortening its publishing cycle to provide more -frequent commentary on individual credits. According to S&P, "Commentary will be increasingly tied to market events, including routine earnings releases and other material disclosures. Commentary will also be focused on situations where market sentiment, as evidenced by the price volatility of a company's securities, is demonstrating the market's uncertainty or concern. " Intensified surveillance. S&P has also intensified its surveillance as a result of economic weakness and heightened economic uncertainty. Specifically, the rating agency said it has increased its scrutiny of situations in which "preservation of creditworthiness depends on asset divestitures or recapitalizations and the confidence with which those strategies can be implemented in the current environment." S&P also said it is Goldman Sachs Fixed Income Research United States Ratings Process Under Review: Direction Uncertain focusing on liquidity and funding risks, "particularly the risk of contingent commitments and the ability to maintain sufficient liquidity support arrangements in light of the banking industry's shifting pricing and lending policies regarding liquidity support arrangements." The rating agency also said that it intends to incorporate security price behavior into its surveillance process. Rating trigger review. In light of the recent events at Enron, S&P said it has initiated a review of ratings, equity price triggers, and other contingent financial and operating commitments embedded in companies' borrowing, counterparty, and structured financing arrangements. As part of its review, S&P has polled its investment grade issuers to determine how many triggers are in use. CreditWatch actions will change; outlook process will not S&P said it is changing its CreditWatch policies. These changes include resolving CreditWatch actions more quickly as well as providing more information on the extent of the potential decline in a company's ratings while they are on CreditWatch. Furthermore, the agency said that it will provide both commentary on what rating levels the company could fall to and updates to its opinion if its expectations for a credit change. According to S&P, these changes will "provide additional information on so-called credit cliff situations, when creditworthiness and ratings could decline precipitously under certain lower -probability, adverse scenarios. " S&P said it has no plans to eliminate outlooks, as they indicate the underlying trend in creditworthiness and the key factors that could drive an upgrade or downgrade. The agency emphasized that "strong disciplines are in place in Standard & Poor's rating process to ensure that outlook revisions are not used as substitutes for a rating revision. In S&P's view, the level of default and rating transitions indicate a significant erosion of creditworthiness and greater volatility of credit. The agency believes that this is caused by the current economic environment and the fact that corporate managements have a greater tolerance for leverage today than in the past. Next steps S&P has not announced any formal plans to solicit feedback from investors and/or issuers, as most of its policies remain unchanged. Going forward, the agency plans to focus its commentary on situations where "market sentiment, as evidenced by the price volatility of a company's securities, is demonstrating the market's uncertainty or concern." The agency's goal is "to align Standard & Poor's commentary with situations when investors have the greatest interest." Goldman Sachs Fixed Income Research Ratings Process Under Review: Direction Uncertain United States Implications of changes in ratings procedures The agencies - particularly Moody's - have indicated that the evaluation of rating procedures is a fluid process and that changes along the way are likely. However, we believe the proposed changes in the current policies could unintentionally restrict liquidity for issuers, especially those at the lower end of the investment grade spectrum. This effect will depend on how far-reaching the rating agencies' final policy changes may be. In our view, the market is likely to have numerous questions in response to the agencies' potential policy revisions. Below, we have outlined some of the most important questions. (1) Will there be a reduction in the volume of short-term borrowing? In our view, there are two considerations here. First, issuers may well find the commercial paper market to be less liquid, less flexible, and more costly. Second, investors may find that the supply of corporate commercial paper on which they have come to depend is no longer adequate to meet their needs. (2) What are the potential effects on liquidity and price/spread volatility? Market participants should be prepared to react to an increase in ratings volatility. Downgrade risk is the most significant risk for money market investors, so they might shorten maturities and trim credit approval lists. These investors might also tend to sell securities prior to maturity more often. (3) Will there be room for only the very highest quality credits in the commercial paper market? Issuers with strong - but perceived as less stable - credit characteristics could be forced out of the commercial paper market. If investors are unable to tolerate increased downgrade risk, issuers might consist only of those companies whose downgrade risk is perceived to be nearly zero. This was the case in the early days of the modern commercial paper market (in the 1970s and 1980s). Unlike most debt markets, in which higher yields compensate for greater credit risk, today's commercial paper market could be divided into two groups: (1) a small group of exceptionally creditworthy companies that can borrow almost unlimited amounts at very aggressive rates, and (2) a larger number of issuers that have limited liquidity and relatively high borrowing costs. (4) Could a commercial paper market sector develop for companies rated below A-2/P-2? We think the likelihood is high that fewer companies will enjoy A-2/P-2 short-term ratings as a result of the rating agencies' proposed policy changes. At the same time, the overall credit quality and number of issuers rated just below A-2/P-2 is likely to increase. It is possible that this will be the basis of a robust market for issuers rated below A-2/P-2. We could see increased demand for lower rated commercial paper from investors who typically choose longer -dated securities but who find the combination of higher yield and shorter maturity attractive. (5) Is there potential for an increase in large asset -backed commercial paper programs and a decline in the number of traditional corporate issuer programs? Although investment grade issuers have been using asset -backed Goldman Sachs Fixed Income Research United States Ratings Process Under Review: Direction Uncertain commercial paper conduits as one of their funding tools for some time, this financing method - which is currently more expensive than issuing directly - could become more common. Asset -backed commercial paper programs are perceived as less exposed to event and downgrade risk. (6) How will investors balance their own due diligence with the newly proposed rating guidelines? It is possible that investors will rely more heavily on the rating agencies' due diligence if and when the agencies adopt the proposed policy revisions. If investors accept the proposed changes at face value, they might assume that the agencies will not "miss" any negative credit events - thus potentially reducing the scope of investors' credit analyses. (7) Will investors require greater transparency for issuers' contingent liquidity arrangements? Because issuers could be forced out of the commercial paper market more abruptly given the potential changes in rating agency policy, both issuers and investors are likely to place more emphasis on contractual liquidity. Furthermore, we believe that less certain market access will put more pressure on liquidity insurance. Closing Comments The commercial paper market has proven to be one of the most resilient debt markets in the world. It has been a remarkably stable source of short-term capital for borrowers and of short-term securities for investors, despite the volatility of world events and the periodic instability of other financial markets. We believe that the vitality of the commercial paper market is not in jeopardy. One of the keys to the market's success is its ability to adapt to changing conditions. It has a self-regulating capacity that has allowed it to evolve quietly without eroding the strong credit and liquidity characteristics that are fundamental to its well being. The credit rating agencies are an important part of this dynamic. We commend the proposed revisions to their procedures and policies made in the interest of better credit analysis and liquidity in the commercial paper market. We welcome the opportunity to contribute to the commentary on the issues that are integral to the agencies' proposed changes. Goldman Sachs Fixed Income Research Ratings Process Under Review: Direction Uncertain United States Goldman, Sachs & Co or an affiliate makes a market in fixed income securities of issuers discussed in this report and may deal as principal in these securities. Copyright © 2002 by Goldman, Sachs & Co. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We are not soliciting any action based upon this material. This material is for the general information of clients of Goldman Sachs. 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