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FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calls Tampico
La Quinta, California 92253
ADJOURNED MEETINGS
THURSDAY, JUNE 19, 2008 — 6:00 P.M.
CALL TO ORDER
Roll Call:
Board Members: Henderson, Kirk, Osborne, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time, members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
CONSENT CALENDAR
1. ADOPTION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2008/2009.
BUSINESS SESSION
1. CONSIDERATION OF FISCAL YEAR 2008/2009 PRELIMINARY BUDGET.
A. MINUTE ORDER ACTION
601
Financing Authority Agenda 1 June 19, 2008
ADJOURNMENT
The next regular meeting of the Financing Authority will be held on September 16,
2008, commencing at 4:00 p.m. in the City Council Chambers, 78-495 Calle
Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Financing Authority meeting of June 19,
2008, was posted on the outside entry to the Council Chamber at 78-495 Calle
Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on June 13, 2008.
i
une 13, 2008
J. NTECINO, City Clerk
City of La Quinta, California
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Financing Authority Agenda 2 June 19, 2008
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COUNCIL/RDA MEETING DATE: June 19, 2008
ITEM TITLE: Adoption of a Resolution Adopting the
Investment Policy of the Financing Authority
for Fiscal Year 2008/2009
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Financing Authority approving the Investment Policy of
the City of La Quinta for Fiscal Year 2008/2009.
SEE CITY COUNCIL STAFF REPORT
003
RESOLUTION NO. FA 2008-
A RESOLUTION OF THE LA QUINTA FINANCING
AUTHORITY OF THE CITY OF LA QUINTA APPROVING
AND ADOPTING THE AMENDED INVESTMENT POLICY
FOR FISCAL YEAR 2008/2009
WHEREAS, the general purpose of the Investment Policy is to provide the
rules and standards users must follow in investing funds of the City of La Quinta;
and
WHEREAS, the primary objectives, in order of priority, of the City of La
Quinta's investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently liguid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or iy eld throughout budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio
is derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement
written procedures for the operation of the City's investment program consistent
with the Investment Policy for Fiscal Year 2008/2009; and
WHEREAS, the Investment Policy will be adopted before the end of June of
each year and amended as considered necessary; and
NOW, THEREFORE, BE IT RESOLVED by the Financing Authority of the City
of La Quinta to adopt the Fiscal Year Investment Policy (Exhibit A).
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Resolution 2008 -
Investment Policy
June 19, 2008
Page 2 of 2
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Financing Authority, held on this day of 2008
by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
DON ADOLPH, Chairman
La Quinta Financing Authority
ATTEST:
VERONICA J. MONTECINO, CIVIC, Secretary
La Quinta Financing Authority
(SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Authority Counsel
La Quinta Financing Authority
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AGENDA CATEGORY:
COUNCILIRDA MEETING DATE: June 19, 2008
BUSINESS SESSION:
ITEM TITLE: Consideration of Fiscal Year CONSENT CALENDAR:
2008/2009 Preliminary Budget
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt the Fiscal Year 2008/2009 Preliminary Budget and direct staff to prepare a
Fiscal Year 2008/2009 Final Budget for the July 15, 2008 La Quinta Financing
Authority Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2008/2009 revenues, operational appropriations and debt
service funding are included in this Preliminary Budget.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Introduction
The purpose of the La Quinta Financing Authority is to pay the debt service on the
1996 Civic Center Bonds and the 2004 Local Agency Revenue Bonds. The debt
service for FY 08/09 on the 1996 Civic Center Bonds is $676,450 and the 2004 Local
Agency Revenue Bonds debt service is $5,919,994. Additional debt service costs
such as trustee fees and audit fees are $15,800 for a total budget of $6,612,244.
Funding to pay the Civic Center bonds is paid through rent charges from the General
Fund (30%), Redevelopment Agency (40%) and the Civic Center Development Impact
Fees (30%). The debt service payments are made every six months and are due
October 1' and April 155. The final payment is scheduled for FY 2019.
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Funding to pay the 2004 Local Agency Revenue Bonds is paid through two separate
transfers. The first set of transfers occurs between the RDA 1 &2 Low & Moderate
Housing Funds and the RDA 1 &2 Debt Service Funds. The second set of transfers
occurs between the RDA 1 &2 Debt Service Funds and the Financing Authority Debt
Service Fund. These bonds were issued in June 2004 for low & moderate housing
purposes through the Financing Authority with the Redevelopment Agency making the
annual debt service payment. The allocation between Project Areas 1 & 2 to fund the
annual debt service is based upon tax increment revenues with 2/3rds of the debt
service payment coming from Project Area 1 and 1 /3`d coming from Project Area 2.
The debt service payments are made every six months and are due September 1 s` and
March 1 ". The final payment is scheduled to be made in FY 2035.
FINDINGS AND ALTERNATIVES:
Staff is requesting:
1) Review and comment on the Fiscal Year 2008/2009 La Quinta Financing
Authority Preliminary Budget and provide direction regarding any proposed
changes to the document; and
2) Approval of the Fiscal Year 2008/2009 Fiscal Year La Quinta Financing
Authority Preliminary Budget as amended at the June 19, 2008, La Quinta
Financing Authority Meeting. (Any approved changes by the Authority to be
incorporated into the Final Budget for adoption on July 15, 2008.)
Respectfully submitted,
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John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
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