FY 1990-1991 RDA Financial StatementsLA QUINTA REDEVELOPMENT AGENCY
COMPONENT UNIT
FINANCIAL STATEMENTS
WrM REPORT ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
JUNE 30, 1991
LA QUINTA REDEVELOPMENT AGENCY
TABLE OF CONTENTS
June 30, 1991
Independent Auditors' Report
General Purpose Financial Statements:
Page
Number
1
Combined Balance Sheet - All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 3
Notes to Financial Statements 4- 15
Supplementary Information:
Combining Balance Sheet - All Capital Project Funds 16
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - All Capital Project Funds 17
Combining Balance Sheet - All Debt Service Funds
In.
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - All Debt Service Funds 19
Independent Auditors' Report on Compliance with Audit
Guidelines for California Redevelopment Agencies 20
DiEHL,EUANS
INDEPENDENT AUDITORS' REPORT
Board of Directors
La Quinta Redevelopment Agency
La Quinta, California
�( 'O� (�A T�Tt7
RODNEY K. MCDANIEL, CP1,
vv�w lYll[���Jj
RALPH H.WEINiRAUB,CP.Y
CERTffIED PUBLIC ACCOI NT \hTS
�4CHAEL R. LUDIN, CPA,
.4 PARih'ERSMP L\CLLDCIG ACCOL'hTAC1' CORPORA1lONS
ROBERT R. u,'LNE, CPA
PHILIP H. HOLTKAMP. CP.A
1$401 VON KARMAN, SUITE ZOO
THOMAS M. PERLOWSKI. CR4
IRVINE •CALIFORNIA 92715.1542
HARVEY 1. SCHROEDER. CPA
PHONE (714) 757.7700
FAX (714) 757.2707
August 20, 1991
We have audited the general purpose financial statements of the La Quinta Redevelopment
Agency, as of and for the year ended June 30, 1991, as listed in the table of contents. These
financial statements are the responsibility of the Agency's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and.
significant estimates made by management, as well as evaluating the overall general purpose
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the La Quinta Redevelopment Agency as of June 30,
1991, and the results of its operations for the year then ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The financial statements listed in the table of contents as
supplementary information are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of the La Quinta Redevelopment
Agency. The information has been subjected to the auditing procedures applied in the audit of
the general purpose financial statements and, in our opinion, is fairly stated in all material
respects in relation to the general purpose financial statements taken as a whole.
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OTHER OFFICES AT: ?965 ROOSEVELT ST 613 W. VALLEY PKWY., SUITE 330
CIRLSBAD, CA 92C08-2389 ESCONDIDO. CA 92025-2552
16191 729-2343 (619)741-3141
619) 729.2234 FAX 1619) 741.9890 FAX
LA QUINTA REDEVELOPMENT AGENCY
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1991
Governmental
Fund Types
Account Groups
Totals
Capital
Debt
General Long Term
(Memorandum
ASSETS: Projects
Service
Fixed Asset Debt
Only)
Cash and temporary investments
(Notes lc and 3) $ 6,620,866
$ 3,048,609
$ - $ -
$ 9,669,475
Tax increment receivable (Note 4) 35,797
181,315
- -
217,112
Accrued interest receivable -
153,573
- -
153,573
Due from other governmental
agencies 364,861
Restricted assets:
-
- -
364,861
Cash with fiscal agent
(Notes 3 and 6) -
General fixed assets
753,934
- -
753,934
(Notes la and 9) -
Amount available for debt service -
-
5,981,652 -
5,981,652
Amount to be provided for
-
- 3,800,007
3,800,007
retirement of long-term debt -
53,383,508
53,383,508
TOTAL ASSETS 1.7a021,524
4,137,431"5
981,652 1_57,.1 83 515
$ 74,324,122
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable $ 298,012
$ -
$ - $ -
$ 298,012
Due to other governmental agencies -
337,424
- -
337,424
Bonds payable (Notes 8a and 8b) -
-
- 26,850,000
26,850,000
Due to County of Riverside (Note 8c) -
-
- 6,007,041
6,007,041
Notes payable to School Districts
(Notes 8d and 8e) -
Loan payable to City of La Quinta
-
- 18,270,632
18,270,632
(Note 8g) -
Notes payable to individuals
-
- 2,672,342
2,672,342
(Note 80 -
TOTAL LIABILITIES 298.012
337,424
3,383.500
- 57,183,515
3,383,500
57,818,951
FUND EQUITY:
Investment in general fixed
assets
Fund balances (Notes 7 and 8):
Reserved for capital projects
Reserved for debt service
TOTAL FUND EQUITY
5,981,652 - 5,981,652
6,723,512 - - - 6,723,512
3,800,007 - - 3,800,007
6.721512 3,800,007 5,981,652 - 16,505,171
TOTAL LIABILITIES AND
FUND EQUITY LL2L1 524 $_4,137,431 5 981 652 57 183,E 74J24,122
See independent auditors' report and notes to financial statements.
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LA QUINTA REDEVELOPMENT AGENCY
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
For the year ended June 30, 1991
REVENUES:
Tax increment revenue (Note 4)
Interest income
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Trustee fees
Administrative (Note 5)
Professional and consulting services
Project costs
Pass through to other agencies (Note 4b)
Debt Service:
Interest (Notes lb and 8)
Principal retirement (Note 8)
Payment on loans from City (Note 8g)
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Loans from City (Note 8g)
Proceeds from notes (Note 8f)
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
FUND BALANCES, JULY 1, 1990
FUND BALANCES, JUNE 30, 1991
2,135,956 29135,956
1,165,430 1,1659430
- 7,808,973 7.808,973
10,162.457 11.449,416 21,611,873
(8.454,867) X2,511,226) (10,966,093)
7,999,112 482,308 8,481,420
3,383,500 - 3,383,500
160,764 - 160,764
_160,764) - (160,764)
11,382,612 482.308 11,864,920
2,927,745 (2,028,918) 898,827
3,795.767 5.828.925 9,624,692
$ 6,723,512 $ 3,800,007 10,523,519
See independent auditors' report and notes to financial statements.
-3-
Totals
Capital
Debt
(Memorandum
Projects
Service
Only,)
$ 1,544,169
$ 8,396,383
$ 9,940,552
160,520
541,807
702,327
2,901
-
2.901
1,707,590
8,938,190
10,645,780
33,879
-
33,879
453,881
-
453,881
139,629
-
139,629
9,535,068
-
9,535,068
-
339,057
339,057
2,135,956 29135,956
1,165,430 1,1659430
- 7,808,973 7.808,973
10,162.457 11.449,416 21,611,873
(8.454,867) X2,511,226) (10,966,093)
7,999,112 482,308 8,481,420
3,383,500 - 3,383,500
160,764 - 160,764
_160,764) - (160,764)
11,382,612 482.308 11,864,920
2,927,745 (2,028,918) 898,827
3,795.767 5.828.925 9,624,692
$ 6,723,512 $ 3,800,007 10,523,519
See independent auditors' report and notes to financial statements.
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LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
June 30, 1991
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Description of funds and account groups:
The accounts of the La Quinta Redevelopment Agency (the Agency) are organized on
the basis of funds and account groups, each of which is considered a separate
accounting entity with a self -balancing set of accounts. The funds and account groups
used in the accompanying financial statements and described below are those specified
for governmental units by the Governmental Accounting Standards Board (GASB).
vital Projects Funds:
Capital Projects Funds are established to account for debt proceeds available for
project improvements and interest income on invested funds. The funds are expended
primarily for administrative expenses and redevelopment project costs. Included as
a Capital Projects Fund is the low income housing fund which accounts for taxes
which are allocated by the Agency pursuant to the California Health and Safety Code.
These funds shall be used by the Agency for the purpose of providing affordable
housing. Under provisions of the Health and Safety Code, Capital Projects Funds are
referred to as "Redevelopment Funds".
Debt Service Funds:
Debt Service Funds are established to account for tax increment revenues, bond
proceeds required to be set aside for future debt service and related interest income.
The funds are used to repay principal and interest on indebtedness of the Agency.
Under provisions of the Health and Safety Code, such funds are referred to as "Special
Funds".
General Fixed Assets Account Grou
General fixed assets of the Agency are recorded as expenditures in the Capital Projects
Funds at time of purchase, and are then recorded for memorandum purposes in the
General Fixed Asset Account Group. These fixed assets are capitalized at historical
cost. No depreciation is provided on general fixed assets.
Long Term Debt Account Group:
The Long Term Debt Account Group is used to account for bonds payable and other
long-term indebtedness of the Agency.
See independent auditors' report.
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LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Accounting:
The modified accrual basis of accounting is used for all funds of the Agency.
Revenues are recognized when they become measurable and available to finance
expenditures of the current period. Accrued revenues include tax increment revenue
and accrued interest on investments. Expenditures are recorded when the related
liability is incurred, except that principal and interest payments on long-term debt are
recorded as expenditures when due. Accrued interest on amounts due to the County
of Riverside is reported in the long-term debt account group.
C. Investments:
Investments are stated at cost, or amortized cost, which approximates market value.
(See Note 3).
d. Bond Discounts and Bond Issue Costs:
As described at Note lb. above, interest on bonds payable is not accrued, but rather
is recorded as an expenditure when due. Consistent with this policy, discounts on the
sale of bonds and bond issue costs are recorded as expenditures when paid in the year
the bonds are issued.
e. Budgetary Reporting:
The budgets of the Agency are primarily "long-term" budgets which emphasize major
programs and capital outlay plans extending over a number of years. Because of the
long-term nature of projects, annual budget comparisons are not considered
meaningful, and accordingly, no budgetary information is included in the
accompanying financial statements.
f. Measurement Focus:
All governmental funds are accounted for on a spending or "financial flow"
measurement focus. This means that generally only current assets and current
liabilities are included on their balance sheets. Statements of revenue, expenditures
and changes in fund balances for governmental funds generally present increases
(revenues and other financing sources) and decreases (expenditures and other financing
uses) in net current assets.
See independent auditors' report.
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LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Total Columns on Combined Statements:
Total columns on the financial statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis and such data is not
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
2. HISTORY AND ORGANIZATION:
The Agency was activated on July 5, 1983. The primary purpose of the Agency is to
eliminate blight through the process of redevelopment. On November 29, 1983 the City
Council approved and adopted the Redevelopment Plan for the La Quinta Redevelopment
Project Area No. 1. On May 16, 1989, the City Council approved and adopted the
Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2. These plans
provide for the elimination of blight and deterioration which was found to exist in the
project areas.
The Coachella Valley Water District is jointly financing projects with the Agency to help
prevent the potential flooding of the project areas.
3. CASH AND INVESTMENTS:
Authorized Investments:
Under provisions of the Agency's Investment Policy, and in accordance with Section 53601
of the California Government Code, the Agency may invest in the following types of
investments:
U S. Treasury Bills, Notes or Bonds Federal Agency Obligations
Bankers Acceptances Bonds Issued by the City of La Quinta
Negotiable Certificates of Deposit or La Quinta Redevelopment Agency
Repurchase Agreements California Local Agency Investment
California County Investment Pools Fund
California Local Agency Investment Fund (LAIF):
The LAIF is a special fund of the California State Treasury through which local
governments may pool investments. The Agency may invest up to $15,000,000 in the fund.
Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours
without loss of interest.
See independent auditors' report.
0
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
3. CASH AND INVESTMENTS (CONTINUED):
Allocation of Interest Income Among Funds:
Interest is allocated on a quarterly basis based on the weighted average balances of cash and
investments in each fund.
Classification of Deposits and Investments By Credit Risk:
Deposits and investments are classified into three categories of credit risk. These categories
are as follows:
Deposits:
Category 1 - Deposits which are insured by FDIC, FSLIC, a state depository insurance
fund or a multiple -financial institution collateral pool, or deposits which are
collateralized with securities held by the Agency or the Agency's agent in the
Agency's name.
Category 2 - Deposits which are collateralized with securities held by the pledging financial
institutions trust department in the Agency's name.
Category 3 - Deposits which are uncollateralized, or collateralized but the pledged
securities are not held in the Agency's name.
Investments:
Category 1 - Investments which are insured by SIPC, or where the securities are held by
the Agency or the Agency's agent in the Agency's name.
Category 2 - Investments which are uninsured, where the securities are held by the
purchasing financial institution's trust department or agent in the Agency's
name.
Category 3 - Investments which are uninsured, where the securities are held by the
purchasing financial institution's trust department or agent, but not in the
Agency's name.
See independent auditors' report.
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LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
3. CASK AND INVESTMENTS (CONTINUED):
Deposits and investments were categorized as follows at June 30, 1991:
Deposits:
Banks:
Demand Accounts
Investments:
Money Market
Fiscal Agent
Investments
California Local Agency
Investment Fund (LAIF)
Category Carrying Market
1 2 3 Amount Value
$ 100,000 $ 68,205 $ - $ 168,205 $ 168,205
- - 183,088 183,088 183,088
- 75 ,4 753.934 753.934
100 000 1, 68,205 1937,022 1,105,227 1,105,227
Total Cash and Investments
Add: Deposits in transit
Less: Outstanding checks
Book Balance
• 1�1. 1,11 ` 1.1} 1.1.1
10,114,227 IL0.1.114,227
445,062
(135.880)
$10,423,409
Cash and investments are reported in the accompanying combined balance sheet as follows:
Cash and investments - unrestricted $ 9,669,475
Cash and investments with fiscal agent -restricted 753.934
$10,423,409
4. TAX INCREMENT FINANCING AND RELATED RECEIVABLES:
The Agency's primary source of revenue comes from property taxes, referred to in the
accompanying financial statements as "tax increment revenue". Property taxes allocated to
the Agency are computed in the following manner:
a. The assessed valuation of all property within the project area is determined on the date
of adoption of the Redevelopment Plan.
See independent auditors' report.
N.
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
4. TAX INCREMENT FINANCING AND RELATED RECEIVABLES (CONTINUED):
b. Property taxes related to the incremental increase in assessed values after the adoption
of the Redevelopment Plan are, except where otherwise provided by specific
agreement, allocated to the Agency; all taxes on the "frozen" assessed valuation of the
property are allocated to the City and other taxing agencies. For the year ended
June 30, 1991 other agencies received through specific agreements a total of $339,057
in tax increment revenue otherwise allocated to the Agency.
The Agency has no power to levy and collect taxes and any legislative property tax
de -emphasis might reduce the amount of tax revenues that would otherwise be available to
pay debt service. Broadened property tax exemptions could have a similar effect.
Conversely, any increase in the tax rate or assessed valuation, or any reduction or
elimination of present exemptions would increase the amount of tax revenues that would
be available to pay debt service.
The tax increment receivable of $217,112 represents assessments attributable to the fiscal
year ended June 30, 1991 that were remitted to the Agency by the County of Riverside after
the year end.
5. REIMBURSEMENT AGREEMENT:
Pursuant to the terms of a reimbursement agreement, the Agency has reimbursed the City
$331,689 for the use of City personnel during the past year. This amount is included in
the administrative expenditures of the Capital Projects Funds.
6. RESTRICTED ASSETS:
Certain assets are held by a fiscal agent and are restricted in their use to the retirement of
principal and interest on bonds (see Notes 8a and 8b), and are not available for use by the
Agency for any other purpose.
7. FUND BALANCE RESERVES:
The Agency established "reserves" of fund equity to segregate fund balances which are not
appropriable for expenditure in future periods, or which are set aside for a specific future
use.
See independent auditors' report.
19
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
7. FUND BALANCE RESERVES (CONTINUED):
At June 30, 1991, the Agency had reserved the entire fund balance of the Debt Service
Funds in accordance with state law, which requires that all tax increment revenues be used
solely to service debt.
At June 30, 1991, the Agency reserved the entire fund balance of the Capital Projects Funds
to indicate that the related assets were set aside for capital projects.
8. LONG-TERM DEBT:
Changes in long-term debt during the year ended June 30, 1991 were as follows:
Tax Allocation Bonds
Due to County of
Riverside
Notes payable:
Desert Sands Unified
School District
Coachella Valley Unified
School District
Individuals
Loan payable to City of
La Quinta
Total
June 30, June 30,
1990 Additions I yments 1991
$ 27,370,000 $ -
4,306,642 1,700,399
2,626,369 1,005,651
1,546,671 13,737,371
- 3,383,500
$ 520,000 $ 26,850,000
6,007,041
117,880 3,514,140
527,550 14,756,492
- 3,383,500
1.999,895 8.481.420 7,808.973 2.672.342
L.37,849,577 1 28.308.341 $,8.974,403 $57,183,515
Unpaid accrued interest and subventions due to the County of Riverside, the Desert Sands
Unified School District and the Coachella Valley Unified School District in the amounts of
$1,700,399, $1,005,651 and $13,737,371 respectively have been added to long-term debt.
However, these amounts have not been included as expenditures for the year ended June 30,
1991.
See independent auditors' report.
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LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
8. LONG-TERM DEBT (CONTINUED):
a. Tax Allocation Bonds, Series 1989:
On January 1, 1989, the Agency issued the La Quinta Redevelopment Project Tax
Allocation Bonds, Series 1989 (the "1989 Bonds") in the amount of $8,000,000.
The bonds were issued in denominations of $5,000 or any multiple thereof, with
principal due annually September 1, beginning in 1989, and interest payable
semi-annually, on March 1 and September 1. Interest rates range from 6.2 % to 7.6 %
per annum.
Bonds maturing on or after September 1, 1999 are subject to redemption, at the option
of the Agency, as a whole or in part, on any interest payment date, on or after
September 1, 1998, at a redemption price equal to the principal amount, plus accrued
interest, plus a premium of 1/2% to 2%.
Bonds maturing on September 1, 2012 are subject to mandatory redemption, in part
from sinking account payments on September 1, 2001 and on each September 1,
thereafter, through September 1, 2012, at a prepayment price equal to 100% of the
principal amount plus accrued interest.
The proceeds of the Bonds were used for flood control improvements.
The following is a schedule of future debt service payments for the Bonds:
Year Ending
June 30,
Principal
Interest
Total
1992
$ 145,000
$ 582,203
$ 727,203
1993
155,000
572,186
727,186
1994
165,000
5611263
726,263
1995
180,000
549,270
729,270
1996
190,000
536,225
726,225
1997-2013
6.705.000
5,495.910
12.200,910
Total 1 7,540,000 $ 8,297,057 $ 15,837,057
Under terms of the issue, a minimum of $727,203, the maximum annual debt service
amount, is to be set aside in reserve funds. A total of $753,934 was set aside at
June 30, 1991.
See independent auditors' report.
-11-
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
8. LONG-TERM DEBT (CON'T'INUED):
b. Tax Allocation Bonds, Series 1990:
On April 1, 1990 the Agency issued the La Quinta Redevelopment Project 'Pax
Allocation Bonds, Series 1990 in the amount of $19,695,000. A portion of the
proceeds were used to refund 1985 Tax Allocation Bonds.
The bonds were issued in denominations of $5,000 or any multiple thereof, with
principal due annually September 1, beginning in 1990, and interest payable
semi-annually on March 1 and September 1. Interest rates range from 5.8 % to 6.8 %
per annum.
Bonds maturing on September 1, 2005 and September 1, 2012 are subject to
redemption, at the option of the Agency, as a whole or in part, on any interest
payment date, on or after September 1, 2000, at a redemption price equal to the
principal amount, plus accrued interest, plus a premium of 1/2% to 2%.
Bonds maturing on September 1, 2005 and September 1, 2006 are subject to
mandatory redemption, in part from sinking account payments on September 1, 2001
and September 1, 2006, respectively, and each September 1, thereafter, through
September 1, 2005 and September 1, 2012, respectively, at a premium price equal to
100% of the principal amount plus accrued interest.
The following is a schedule of future debt service payments for the Bonds:
Year Ending
June 30
1992
1993
1994
1995
1996
1997-2013
Total
See independent auditors' report.
Principal Interest Total
$ 405,000
430,000
460,000
485,000
520,000
17.010,000
$ 1,434,835
1,409,355
1,381,535
1,351,767
1,319,853
13,855.855
19,310, $20,753 200
-12-
$ 1,839,835
1,839,355
1,841,535
1,836,767
1,839,853
30.865.855
$ 40.063.200
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
8. LONG-TERM DEBT (CONTINUED):
b. 1hx Allocation Bonds, Series 1990 (Continued):
Under terms of the issue, the maximum annual debt service amount of $1,839,835,
is to be set aside in reserve funds unless the Agency elects to maintain the reserve
requirement by obtaining a letter of credit for the amount. The Agency has obtained
such a letter of credit.
C. Due to County of Riverside:
Based on an agreement dated November 29, 1983 between the Agency, the City of La
Quinta and the County of Riverside (County), the Agency shall repay to the County
fifty percent of tax increment received which would have been retained by the County
if the Agency did not exist. These repayments are subordinate to certain debt service
of the Agency and exclude amounts allocated to the low income housing fund. The
repayments will begin when certain conditions of the bond indenture agreement have
been met. Unpaid balances accrue interest at 10% per annum. The total amount
payable to the County under this agreement at June 30, 1991 is $6,007,041 including
$466,649 of current year accrued interest. This amount has been recorded in the
long-term debt account group.
From the remaining fifty percent of tax increment revenue, the Agency shall set aside
related required amounts in the low income housing fund. Then, the Agency will pay
debt and expenditures of no more than $3,000,000 annually and $10,000,000 total on
mutually agreeable project costs. The County is to receive the remainder of this 50%
share after these payments are made. No amounts are due under this provision at
June 30, 1991.
d. Notes Payable to Desert Sands Unified School District:
Based on an agreement dated June 21, 1988 between the Agency, the City of La
Quinta and the Desert Sands Unified School District (District), the Agency shall
identify all tax increment revenue received by the Agency that the District would have
received in the absence of a redevelopment plan. This tax increment will then be paid
to the District over a payment schedule from June 29, 1988 to July 1, 1998 in amounts
ranging from $21,505 to $547,505 for a total amount of $4,132,020. Or,
alternatively, such tax increment revenues plus interest accrued required by this
agreement may be retained by the Agency to pay on behalf of the District principal
and interest on loans, construction projects or money advanced to finance a sports
complex and related amenities as specified by the District. The District's allocable
share of tax increment from the County for the fiscal year ended June 30, 1991 totaled
$1,005,651.
See independent auditors' report.
-13-
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
8. LONG-TERM DEBT (CONTINUED):
e. Note Payable to Coachella Valley Unified School District:
An agreement was entered into in 1991 between the Agency, the City of La Quinta
and the Coachella Valley Unified School District (District) which provides for the
payment to the District of a portion of tax increment revenue that the District would
have received in the absence of a redevelopment plan. Such payments are
subordinated to other indebtedness of the Agency incurred in furtherance of the
Redevelopment Plan. The District agrees to use such funds to provide classroom and
other construction costs, site acquisition, school busses or expansion or rehabilitation
of current facilities.
The following is a schedule of future debt service payments:
Year Ending
June 30,
1992
$ 353,699
1993
730,081
1994
776,353
1995
624,474
1996
474,517
1997-2012
11.797,368
1994
$ 14,756.492
f. Notes Payable to Individuals:
566,604
In the fiscal year ended June 30, 1991, the Agency purchased several parcels of land
from individuals and as a result incurred $3,383,500 of outstanding debt. Interest on
the notes ranges from 9 % to 10.5 % per annum and is payable monthly and quarterly.
The following is a schedule of future debt service payments for the notes:
Year Ending
June 30
Principal
Interest
Total
1992
$ 1,17700
$ 3079134
$ 1,484,134
1993
5439300
200,738
744,038
1994
415,800
150,804
566,604
1995
415,800
112,266
528,066
1996
415,800
74,844
490,644
1997
415.800
37.422
453.222
See independent auditors' report.
3,383,500 $ 883,208 4,266,708
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LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1991
8. LONG-TERM DEBT (CONTINUED):
9.
h.
Loans Payable to the City of La Quinta:
The City of La Quinta periodically makes operating advances to the Agency. There
is no fixed repayment schedule on these loans. The following is a summary of the
changes in the loan balance for the year ended June 30, 1991:
Balance, July 1, 1990
Additional advances
Accrued interest
Payments of principal
Payments of interest
Balance, June 30, 1991
Pledged Tax Revenues:
$ 1,999,895
8,481,420
208,916
(7,808,973)
(208,916)
2,672,342
All tax revenues received by the Agency other than the amount required by law to be
deposited in a low and moderate income housing fund, are required to be deposited
in a Special Fund to be used to meet debt service requirements of the bond indentures
before any payments may be made on other obligations of the Agency.
9. CHANGES IN GENERAL FIXED ASSETS:
The Agency purchased land during the year for $5,372,978 which will be used for parking
facilities.
A summary of general fixed assets transactions for the fiscal year ended June 30, 1991 is
as follows:
Balance Balance
July 1, 1990 Additions Deletions June 30, 1991
Land $ 610.455 5,372,978 $ 1,781 $ 5,981,652
See independent auditors' report.
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SUPPLEMENTARY INFORMATION
LA QUINTA REDEVELOPMENT AGENCY
COMBINING BALANCE SHEET -
ALL CAPITAL PROJECT FUNDS
June 30, 1991
PROJECT PROJECT
AREA NO 1 AREA NO. 2
Flood Low Flood Low
Control Income Control Income
Projects Housing Projects Hol TAMS
ASSETS
Cash and temporary investments $ 4,074,682
Tax increment receivable -
Due from other governmental
agencies 364.861
TOTAL ASSETS 4 439 543
LIABILITIES AND FUND BALANCE
LIABILITIES:
$ 2,359,967 $ 10,872
23,311 -
$2,383,278 10 872
$ 175,345 $ 6,620,866
12,486 35,797
364,861
187 831 1 7,021,524
Accounts payable $ 293,573 $ 1,367 $ 3,072 $ - $ 298,012
FUND BALANCE:
Reserved for capital
projects 4.145.970 2.381,911 7,800 187.831 6.723.512
TOTAL LIABILITIES
AND FUND
BALANCE 4 439 543 2,383,278 10,872 187,831 $ 7,021.524
-16-
LA QUINTA REDEVELOPMENT AGENCY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL CAPITAL PROJECT FUNDS
For the year ended June 30, 1991
EXPENDITURES:
Trustee fees
PROJECT
PROJECT
- 33,879
Administrative
AREA NO. 1
AREA NO. 2
- 453,881
Professional and
Flood Low
Flood Low
consulting services
Control Income
Control Income
79 139,629
Project costs
Projects Housing
Projects Housing
Thtals
REVENUES:
Tax increment revenue
$ - $1,356,338
$ - $ 187,831
$ 1,544,169
Interest income
160,520 -
- -
160,520
Miscellaneous revenue
1,781 1,120
-
2,901.
TOTAL REVENUES
162,301 1,357,458
- 187,831
1,707,590
EXPENDITURES:
Trustee fees
33,879
- -
- 33,879
Administrative
376,033
- 77,848
- 453,881
Professional and
187,831 $ 6,723,512
consulting services
-
61,287 78,263
79 139,629
Project costs
4,260,323
603,079 4,669,964
1,702 9,535,068
TOTAL
EXPENDITURES
4,670,235
664,366 4,826,075
1,781 10,162,457
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,507,934)
OTHER FINANCING SOURCES
(USES):
Loans from City 5,742,965
Proceeds from note -
Operating transfers in 160,764
Operating transfers out -
TOTAL OTHER
FINANCING
SOURCES (USES) 5,903,729
693,092 (4,826,075) 186,050 (8,454,86"
650,588 1,602,608
- 3,383,500
(7,361) (152,233)
2,951 7,999,112.
- 3,383,500
- 160,764
(1,170) (t60,764
643,227 4,833,875 1,781 11,382,612.
EXCESS OF REVENUES AND
OTHER SOURCES OVER
(UNDER) EXPENDITURES
AND OTHER USES 1,395,795 1,336,319
FUND BALANCES,
JULY 1, 1990
FUND BALANCES,
JUNE 30, 1991
7,800 187,831 2,927,745
2,750,175
1,045,592 -
- 3,795,767
4 145 970$2,391,911:
7 800
187,831 $ 6,723,512
3VA
LA QUINTA REDEVELOPMENT AGENCY
COMBINING BALANCE SHEET -
ALL DEBT SERVICE FUNDS
ASSETS
Cash and temporary investments
Tax increment receivable
Accrued interest receivable
Restricted Assets:
Cash with fiscal agent
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES:
Due to other governmental agencies
FUND BALANCE:
Reserved for debt service
TOTAL LIABILITIES AND
FUND BALANCE
June 30, 1991
Project Project
Area Area
No. 1 No.2 Totals
$ 2,347,228 $ 701,381 $ 3,048,609
131,372 49,943 181,315
153,573 - 153,573
753.934 - 753.934
3,386,107 751,324, L 4,137,431
$ 82,397 $ 255,027 $ 337,424
3.303.710 496.297 3.800.007
3,386,107 751,324 4,137,431
LA QUINTA REDEVELOPMENT AGENCY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - ALL DEBT SERVICE FUNDS
For the year ended June 30, 1991
REVENUES:
Tax increment revenue
Interest income
TOTAL REVENUES
EXPENDITURES:
Pass through to other agency
Interest
Principal retirement
Payments on loans from city
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES:
Loans from city
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES
FUND BALANCES, JULY 1, 1990
FUND BALANCES, JUNE 30, 1991
-19-
Project
Project
Area
Area
No. 1
No.2 Totals
$ 7,645,060 $ 751,323 $ 8,396,383
541,807 - 541,807
8,186,867 751,323 8,938,190
82,399
256,658 339,057
2,115,080
20,876 2,135,956
1,165,430
- 1,165,430
7,796,615
12,358 7,808,973
11,159,524 289,892 11,449,416
(2,972,657) 461,431 (2,511,226)
447.442 34,866 482,308
(2,525,215) 496,297 (2,028,918)
5,828,925 - 5,828,925
$ 3,303,710 $ 496,297 $ 3,800,007
LA QUINTA REDEVELOPMENT AGENCY
August 20, 1991
INDEPENDENT AUDITORS' REPORT ON
COMPLIANCE WITH AUDIT GUIDELINES FOR
CALIFORNIA REDEVELOPMENT AGENCIES
In connection with our audit of the general purpose financial statements of the La Quinta
Redevelopment Agency for the year ended June 30, 1991, we have performed, to the extent
applicable, the tests of compliance as required by Health and Safety Code Section 33080.1 and
Sections I through V of the "Guidelines for Compliance Audits of California Redevelopment
Agencies" issued by the State Controller's Office.
Based on the above auditing procedures, we noted no instances of noncompliance with the laws,
regulations and administrative requirements governing special activities of the Agency for the
year ended June 30, 1991.
-20-