FY 2002-2003 RDA Financial StatementsLA QUINTA REDEVELOPMENT AGENCY
Financial Statements and
Supplemental Data
Year ended June 30, 2003
(with Independent Auditors' Report Thereon)
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LA QUINTA REDEVELOPMENT AGENCY
Financial Statements and Supplemental Data
Year ended June 30, 2003
TABLE OF CONTENTS
Page
Independent Auditors' Report
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
2
Statement of Activities
3
Fund Financial Statements:
Governmental Funds:
Balance Sheet
4
Reconciliation of the Balance Sheets of Governmental Funds to the
Statement of Net Assets
6
Statement of Revenues, Expenditures and Changes in Fund Balances
8
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
10
Notes to the Basic Financial Statements
11
Required Supplementary Information:
Notes to Required Supplementary Information
32
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual:
Low/Moderate Income Housing Fund — PA No. 1
33
Low/Moderate Income Housing Fund — PA No. 2
34
Low/Moderate Bond Fund — PA No. l
35
Low/Moderate Bond Fund — PA No. 2
36
Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 37
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CONRADAND
ASSOCIATES, L.L.P.
Board of Directors
La Quinta Redevelopment Agency
La Quinta, California
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
2301 DUPONT DRIVE, SUITE 200
IRVINE, CALIFORNIA 92612
(949) 474-2020
Fax (949) 263-5520
We have audited the accompanying financial statements of the governmental activities and each
major fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta,
California as of and for the year ended June 30, 2003, which collectively comprise the Agency's
basic financial statements as listed in the table of contents. These basic financial statements are
the responsibility of the management of the La Quinta Redevelopment Agency. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the basic financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
basic financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the governmental activities and each major fund of the La Quinta
Redevelopment Agency at June 30, 2003, and the results of its operations for the year then
ended, in conformity with accounting principles generally accepted in the United States of
America.
The La Quinta Redevelopment Agency has not presented Management's Discussion and
Analysis that the Governmental Accounting Standards Board has determined is necessary to
supplement, although not required to be part of, the basic financial statements.
The information identified in the accompanying table of contents as rewired supplementary
information is not a required part of the basic financial statements but is supplementary
information required by the Governmental Accounting Standards Board. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the supplementary information. However, we did
not audit the information and express no opinion on it.
In accordance with Government Auditing Standards, we have also issued a report dated
August 14, 2003 on our consideration of the Agency's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and
grants.
August 14, 2003
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
LA QUINTA REDEVELOPMENT AGENCY
Statement of Net Assets
June 30, 2003
Assets:
Cash and investments (note 2)
Accounts receivable
Notes receivable (note 3)
Deposits
Due from the City of La Quinta
Due from other governments
Advances to the City of La Quinta (note 4)
Restricted assets:
Cash and investments with fiscal agent (note 2)
Capital assets (note 5):
Land
Other capital assets, net
Total assets
Liabilities:
Accounts payable
Interest payable
Deposits payable
Due to the City of La Quinta
Noncurrent liabilities (notes 7 to 12):
Due within one year
Due in more than one year
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for:
Low moderate housing
Capital projects
Unrestricted
Total net assets
Governmental Activities
2003 2002
$ 35,991,319
21,358,275
139,347
166,984
12,613,565
12,509,966
185,000
-
-
2,294,106
551,789
693,210
4,921,720
1,249,728
30,019,213 39,447,831
51,450,306 51,450,306
616,000 644,000
136,488,259 129,814,406
2,368,690 197,189
2,767,256 2,222,309
47,144 15,788
- 2,805,860
3,196,877 2,537,918
172,977,863 167,496,980
181,357,830
20,592,059
44,167,5 62
(109,629,192)
$ (44,869,571)
See accompanying notes to the basic financial statements.
4
175,276,044
1,182,033
20,617,434
39,769,632
(107,030,737
(45,461,638)
Governmental activities:
Planning and
development
Low and moderate
housing
Interest expense
Total governmental
activities
LA QUINTA REDEVELOPMENT AGENCY
Statement of Activities
Year ended June 30, 2003
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Governmental Activities
2003 2002
$ 4,001,911 - -
593,738 (3,408,173)
(4,980,581)
9,022,696 - -
34,569 (8,988,127)
(2,084,867)
9,622,415 - -
- (9,622,415)
(7,387,676)
$ 22,647,022 - -
628,307 (22,018,715)
(14,453,124)
General revenues:
Taxes:
Property taxes
21,191,832
18,899,329
Investment income
666,854
761,259
Rental income
415,555
321,145
Gain (loss) on sale of capital assets
-
(21,397)
Miscellaneous revenues
336,541
25.417
Total general revenues
22,610,782
19,985,753
Change in net assets
592,067
5,532,629
Net assets (deficit) at beginning of year
(45,461,638)
(50,994,267)
Net assets (deficit) at end of year
$ (44,869,571)
(45,461,6
See accompanying notes to the basic financial statements.
3
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds - Balance Sheet
June 30, 2003
Assets
Cash and investments
Cash and investments
with fiscal agent
Accounts receivable
Notes receivable
Deposits
Due from other funds
Due from the City of La Quinta
Due from other governments
Advances to other funds
Advances to the City of La Quinta
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other funds
Due to the City of La Quinta
Advances from other funds
Advances from the City of
La Quinta
Total liabilities
Suecial Revenue Funds
Low/Moderate
Low/Moderate
Low/Moderate Low/Moderate
Income Housing -
Income Housing -
Bond - Bond -
PA No. 1
PA No. 2
PA No. 1 PA No. 2
$ 1,714,382
5,953,126
74,606 -
- - 17 -
78,447 - - -
3,113,565 9,500,000 -
185,000 - -
62,232 48,126 - -
$ 5,153,626 15,501,252 74,623 -
$ 25,168 18,342 - -
995,979 9,500,000 - -
19,309 - - -
1,040,456 9,518,342
Fund balances:
Reserved for:
Bond projects
- -
Debt service
- -
Notes receivable
2,117,5 86 -
Deposits
185,000 -
Advances to other funds
- -
Advances to the City of La Quinta
- -
Unreserved, reported in:
Special revenue funds
1,810,584 5,982,910
Debt service funds
- -
Capital projects funds
- -
Totalfundbalances
4,113,170 5,982,910
Total liabilities and fund balances
$ 5,153,626 15,501,252
See accompanying notes to the basic financial statements.
4
74,623 -
74,623
74,623
Debt Service Funds
Redevelopment Redevelopment
Agency - Agency -
PA No. 1 PA No. 2
13,817,453 5,185,371
2,098 164
248,927 192,504
14,068,478 5,378,039
Cauital Proiects Funds
Redevelopment
Redevelopment
Agency -
Agency -
PA No. 1
PA No. 2
7,285,910
1,960,471
30,016,934
-
-
60,900
3,811,874
1,109,846
41,114,718
3,131,217
Totals
2003 2002
35,991,319 21,358,275
30,019,213
39,447,831
139,347
166,984
12,613,565
13,215,806
185,000
-
-
2,538
-
2,294,106
551,789
693,210
-
39,135
4,921,720
1,249,728
84,421,953 78,467,613
292,097 1,982,545 24,185 26,353 2,368,690 197,189
- - - - 10,495,979 11,079,695
275835 47,144 15,788
- - 2,538
- - 2,805,860
39,135
11,503,322 9,578,000
11,795,419 11,5 60,545
24,185 54,188
21,081,322 12,521,890
33,993,135 26,662,095
- - 30,016,934 - 30,016,934
37,088,695
2,273,059 - - - 21273,059
4,985,471
- - - - 2,117,586
2,136,111
- - - - 185,000
-
- - - - -
39,135
- - 3,811,874 - 3,811,874
1,249,728
(6,182,506)
2,273,059 (6,182,506)
14,068,478 5,378,039
7,261,725
3,077,029
41,090,533
3.077,029
41,114,718
3,131,217
E
7,868,117 10,506,935
(6,182,506) (5,622,884)
10,338,754 1,422,327
50,428,818 51,805,518
84,421,953 78,467,613
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to
the Statement of Net Assets
June 30, 2003
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of
net assets are different because:
Capital assets, net of depreciation, have not been included
as financial resources in governmental fund activity.
Capital assets
Accumulated depreciation
Long term debt from the General Long Term Debt Account Group
that have not been included in the governmental fund activity.
Accrued interest payable for the current portion of interest due on
Long term debt has not been reported in the governmental funds.
Revenues that are measurable but not available. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting.
Net assets of governmental activities
See accompanying notes to the basic financial statements.
$ 50,428,818
52,290,306
(224,000)
(155,093,418)
(2,767,256)
10,495,979
$ (44,869,571)
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LA QUINTA REDEVELOPMENT AGENCY
Governmental Fund Types
Statement of Revenues, Expenditures and Changes in Fund Balances
Year Ended June 30, 2003
Special Revenue Funds
Low/Moderate Low/Moderate Low/Moderate Low/Moderate
Income Housing - Income Housing - Bond - Bond -
PA No. 1 PA No. 2 PA No. 1 PA No. 2
Revenues:
Taxes
$ 5,271,524
Developer fees
-
Investment income
36,406
Rental income
376,863
Miscellaneous revenues
280,752
Total revenues
5,965,545
Expenditures:
Current:
Planning and development
4,103,060
Debt service:
Principal
-
Interest
-
Payments under pass-through
obligations
-
Total expenditures
4,103,060
Excess (deficiency) of
revenues over (under)
expenditures
1,862,485
Other financing sources (uses):
Proceeds of tax allocation bonds
-
Sale of capital assets
-
Transfers in (note 14)
-
Transfers out (note 14)
(1,738,783)
Transfers from (to) the City of La Quinta
(1,548,018)
Total other financing
sources (uses)
(3,286,801)
Net change in fund balances
(1,424,316)
Fund balances (deficit) at
2,479,241 - -
129,263 11,949 2,898
2,608,504 11,949 2,898
765,795 - -
7651$795 - -
1,842,709 11,949 2,898
(338,895) - -
(226,997) - (2.,378,826
(565,892) (2,378,826)
1,276,817 11,949 (2,375,928)
beginning of year
5,537,486
4,706,093
62,674
Fund balances (deficit) at end of year
$ 4,113,170
5,982,910
74,623
See accompanying notes to the basic financial statements.
8
2,375. X28
Debt Service Funds
Redevelopment
Agency -
PA No. 1.
Redevelopment
Agency -
PA No. 2
Capital Projects Funds
Redevelopment Redevelopment
Agency - Agency -
PA No. 1 PA No. 2
Totals
2003 2002
21,086,099
9,916,962
-
-
38,753,826
32,568,495
-
-
-
-
-
48,584
204,789
67,844
652,611
67,277
1,173,037
1,635,997
-
-
38,692
-
415,555
321,145
-
-
55,789
-
336,541
25,417
(5,622,884
21,290,888
9,984,806
747,09267,277
17,933,563
40,678,959
34,599,638
3,077,029
316,567
149,787
1,559,307
217,599
7,112,115
9,949,737
2,264,940
272,978
-
-
2,537,918
11,074,078
7,491,294
1,467,846
-
-
8,959,140
6,541,998
9,669,282
7,892,712
-
-
17,561,994
13,669,166
19,742,083
9,783,323
1,559,307
217,599
36,171,167
41,234,979
1,548,805 201,483 (812,215) (150,322) 4,507,792 (6,635,341)
1,738,783
(6,000,000)
(4,261,217)
(2,712,412)
4,985,471
2,273,059
88,000,000
-
-
-
-
146,603
338,895
6,000,000
1,100,000
9,177,678
11,428,733
(1,100,000)
-
-
(9,177,678)
(11,428,733)
-
(1,939,564)
208,913
(5,884,492)
(47,639,307)
(761,105)
4,060,436
1,308,913
(5,884,492)
40,507,296
(559,622)
3,248,221
1,158,591
(1,376,700)
33,871,955
(5,622,884
37,842,312
1,918,438
51,805,518
17,933,563
(6,182,506)
41,090,533
3,077,029
50,428,818
51,805,518
9
LA QUINTA REDEVELOPMENT AGENCY
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2003
Net changes in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of
activities is different because:
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period.
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets.
Principal repayment
Amortization of bond costs
The statement of net assets includes accrued interest on long term debt.
Revenues that are measurable but not available. Amounts are not recorded
as revenues under the modified accrual basis of accounting.
Changes in net assets of governmental activities
See accompanying notes to the basic financial statements.
10
$ (1,376,700)
(28,000)
2,537,918
(118,328)
(544,947)
122,124
$ 592,067
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
Year ended June 30, 2003
(1) Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies of the La Quinta
Redevelopment Agency:
(a) Organization and Tax Increment Financing
Redevelopment Goals and Objectives
The general objective of the Redevelopment Plan adopted by the Agency is to
encourage investment in the Redevelopment Project Areas by the private sector. The
Redevelopment Plan provides for the demolition of buildings and improvements, the
relocation of any displaced occupants, and the construction of streets, parking
facilities, utilities and other public improvements. The Redevelopment Plan also
includes the ability to redevelop land by private enterprise or public agencies, the
rehabilitation of structures, the rehabilitation or construction of single family and low
and moderate income housing, and participation by owners and tenants of properties in
the Redevelopment Project.
Redevelopment Project Areas
The Agency has established two redevelopment project areas. 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 that was found to
exist in the project areas.
Tax Increment Financing
The Law provides a means for financing redevelopment projects based upon an
allocation of taxes collected within a redevelopment project. The assessed valuation of
a redevelopment project last equalized prior to adoption of a redevelopment plan or
amendment to such redevelopment plan, or "base roll", is established and, except for
any period during which the assessed valuation drops below the base year level, the
taxing bodies, thereafter, receive the taxes produced by the levy of the current tax rate
upon the base roll. Taxes collected upon any increase in assessed valuation over the
base roll ("tax increment") are paid and may be pledged by a redevelopment agency to
the repayment of any indebtedness incurred in financing or refinancing a
redevelopment project. Redevelopment agencies themselves have no authority to levy
property taxes.
11
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the Agency are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
Government -wide Financial Statements
Government -wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business -type activities of the primary
government (including its blended component units), as well as its discreetly presented
component units. The La Quinta Redevelopment Agency has no business -type
activities or discretely presented component units. Eliminations have been made in the
Statement of Activities so that certain allocated expenses are recorded only once (by
the function to which they were allocated). However, general government expenses
have not been allocated as indirect expenses to the various functions of the Agency.
The accompanying government -wide financial statements for the Agency present
negative net assets because the primary activity of the Agency is to issue debt to
construct infrastructure that will be owned and maintained by the City.
Government -wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and
obligations of the reporting government are reported in the government -wide financial
statements. Basis of accounting refers to when revenues and expenditures are
recognized in the accounts and reported in the financial statements. Under the accrual
basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting
from exchange and exchange -like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transaction are recognized in accordance with the requirements of GASB
Statement No. 33.
12
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Program revenues include charges for services and payments made by parties outside
of the reporting government's citizenry if that money is restricted to a particular
program. Program revenues are netted with program expenses in the statement of
activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government -wide
financial statements, rather than reported as an expenditure. Proceeds of long-term
debt are recorded as a liability in the government -wide financial statements, rather than
as an other financing source. Amounts paid to reduce long-term indebtedness of the
reporting government are reported as a reduction of the related liability, rather than as
an expenditure.
Fund Financial Statements
The underlying accounting system of the Agency is organized and operated on the
basis of separate funds, each of which is considered to be a separate accounting entity.
The operations of each fund are accounted for with a separate set of self -balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or
expenses, as appropriate. Governmental resources are allocated to and accounted for in
individual funds based upon the purposes for which they are to be spent and the means
by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary,
and fiduciary funds are presented after the government -wide financial statements.
These statements display information about major funds individually and nonmajor
funds in the aggregate for governmental and enterprise funds. Fiduciary statements
include financial information for fiduciary funds and similar component units.
Fiduciary funds primarily represent assets held by the Agency in a custodial capacity
for other individuals or organizations. The Agency has no nonmajor funds, enterprise
funds, or fiduciary funds.
Governmental Funds
In the fund financial statements, governmental funds and agency funds are presented
using the modified -accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Measurable means that
the amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The Agency
uses a sixty day availability period.
13
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods or
services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they
are based takes place. Imposed non-exchange transactions are recognized as revenues
in the period for which they were imposed. If the period of use is not specified, they
are recognized as revenues when an enforceable legal claim to the revenues arises or
when they are received, whichever occurs first. Government -mandated and voluntary
non-exchange transactions are recognized as revenues when all applicable eligibility
requirements have been met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net
current assets. Accordingly, they are said to present a summary of sources and uses of
"available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are reported
on their balance sheets in spite of their spending measurement focus. Special reporting
treatments are used to indicate, however, that they should not be considered "available
spendable resources," since they do not represent net current assets. Recognition of
governmental fund type revenues represented by noncurrent receivables are deferred
until they become current receivables. Noncurrent portions of other long-term
receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities. Since
they do not affect net current assets, such long-term amounts are not recognized as
governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year
that resources were expended, rather than as fund assets. The proceeds of long-term
debt are recorded as an other financing sources rather than as a fund liability. Amounts
paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted
resources.
14
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant. Accounting Policies, (Continued)
(c) Major Funds
The following funds are presented as major fluids in the accompanying basic financial
statements:
Special Revenue, Low and Moderate Income Housing P.A. No. 1 and No. 2 Funds —
To account for the required 20% set aside of property tax increments that is legally
restricted for increasing or improving housing for low and moderate income
households.
Special Revenue, Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds — To
account for bond proceeds and expenditures of bond -financed low and moderate
income housing programs.
Debt Service Funds, P.A. No. 1 and No. 2 — To account for the accumulation of
resources for the payment of debt service for bond principal, interest and trustee
fees.
Capital Projects Funds, P.A. No. 1 and No. 2 — To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction
and land acquisition.
(d) Cash and Investments
For financial reporting purposes, investments are adjusted to their fair value whenever
the difference between fair value and the carrying amount is material.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments.
(e) Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist.
Contributed fixed assets are valued at their estimated fair market value at the date of
the contribution. Generally, fixed asset purchases in excess of $500 are capitalized if
they have an expected useful life of three years or more. Buildings are depreciated
over a useful life of thirty years.
Capital assets include public domain (infrastructure) general fixed assets consisting of
certain improvements including roads, streets, sidewalks, medians, and storm drains.
15
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments
Cash and investments held by the Agency at June 30, 2003 consisted of the following:
Equity in State of California Local Agency Investment Fund $ 6,420,320
Equity in City cash and investment pool 29,570999
Total cash and investments held by the Agency $35,991.319
Cash and investments held by fiscal agent at June 30, 2003 consisted of the following:
U.S. Treasury Bill $29,002,448
Mutual funds - First American Treasury Obligations 1,016765
Total cash and investments held by fiscal agent $30,019,213
The Agency is authorized by the City's investment policy to invest in the following types of
investments:
Investment Type
U.S. treasuries and GNMA
FHLB, FFCB, FLB, FICB, FNMA, FHLMC
Student Loan Marketing Association
Government Pools
U.S. government and agency securities
Commercial Paper
Mutual Funds
Certificates of Deposit
Restriction
None
$5 million per issuer
$3 million
$40 million and 20% of portfolio
100% of portfolio
$3 million per issuer, and 90 days
20%
60%
Investments of cities in securities are classified in three categories to give an indication of
the level of custodial risk assumed by the entity.
Category 1 - includes investments that are insured or registered or for which the securities
are held by the Agency or the Agency's custodial agent (which must be a different
institution other than the party through which the Agency purchased the securities) in the
Agency's name. Investments held "in the Agency's name" include securities held in a
separate custodial or fiduciary account and identified as owned by the Agency in the
custodian's internal accounting records.
Category 2 - includes uninsured and unregistered investments for which the securities are
held in the Agency's name by the dealer's agent (or by the trust department of the dealer if
the dealer was a financial institution and another department of the institution purchased the
securities for the Agency.)
16
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Category 3 - includes uninsured and unregistered investments for which the securities are
held by the dealer's trust department or agent, but not in the Agency's name. Category 3
also includes all securities held by the broker-dealer agent of the Agency (the party that
purchased the securities for the Agency) regardless of whether or not the securities are being
held in the Agency's name.
Carrying
Category„ Amount
1- - 2 3
U.S. Treasury Bill 1— 29,002,448 - 29,002,448
Investments held by the City not subject to categorization:
Investment in State of California Local Agency Investment Fund 6,420,320
Equity in City cash and investment pool 29,570,999
Investments held by fiscal agent not subject to categorization:
Investment in mutual funds:
First American Treasury Obligation Fund 1,016,765
662010,532
The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the City's investment in this pool is
reported in the accompanying financial statements at amounts based upon the City's pro -rata
share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-
backed securities, other asset-backed securities, loans to certain state funds, and floating rate
securities issued by federal agencies, government-sponsored enterprises, and corporations.
17
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
Outstanding
(3) Notes Receivable Balance at
June 30, 2003
In September 1994, the Agency sold certain real property to
LINC Dousing for $2,112,847. The property was used to
construct single-family homes and rental units to increase the
City's supply of low and moderate income housing, The note
bears interest at 6% per annum and is due in full on June 15,
2029. $ 3,031,367
In December 2000, the Agency entered into an agreement with
DC&TC, LLC to receive $9,500,000 as a reimbursement for
Agency costs incurred for the construction of infrastructure
related to the development of senior apartments. Payments are
due to the Agency in the amount of annual positive cash flow
generated by the rental of the units. All unpaid principal and
interest on the note are due fifty-five years after the completion
of the project. Interest on the note accrues at three percent per
annum. 9,500,000
Other notes receivable 82,198
Total notes receivable $ 12x61.3.565
(4) Advances to the City of La Quinta
The Redevelopment Agency advanced funds to the City of La Quinta to help the City meet
the cost of developing the public -owned improvements to the La Quinta Community Park
and Civic Center Campus. There is no stipulated repayment date established for the Agency
advances. Interest accrues at the earning rate of City's Investment Pool funds, and shall be
adjusted quarterly. At June 30, 2003, outstanding Project Area No. 1 advances were
$3,811,874 and Project Area No. 2 advances were $1,109,846.
18
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(5) Capital Assets
Capital asset activity for the year ended June 30, 2003 was as follows:
Buildings
Balances at Balances at
June 30, 2002 Additions Deletions June 30, 2003
$ 840.000
Total cost of depreciable assets 840,000 -
Less accumulated depreciation for:
Buildings (196,000) (28,000)
Net depreciable assets
Capital assets not depreciated:
Land
Capital assets, net
(6) Property Taxes
644,000 (28,000)
51,450,306 -
840,000
840,000
(224.000)
616,000
51,450,306
52 94,30 (�28) 52,066;306
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex
formulas. Accordingly, the City of La Quinta accrues only those taxes that are received
from the County within sixty days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
The La Quinta Redevelopment Agency's primary source of revenue comes from property
taxes. 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.
(b) Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the
"frozen" assessed valuation of the property are allocated to the City and other
districts.
19
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
b Property Taxes Continued
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. 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 principal and interest on debt.
(7) Long -Term Liabilities
Long-term liability activity for the year ended June 30, 2003 was as follows:
4,416,128 -
(82,978)
4,333,150
86,169
1998 Tax Allocation Bonds
6,505,000 -
Amounts
6,415,000
Balance at
Due to County of Riverside
2,250,000 -
Balance at
due within
100,000
June 30, 2002
Additions
Deletions
June 30, 2003
one year
Project Area No. 1:
Total long-term liabilities
$170.034.A9$ M=
(2.537.918)
1994 Tax Allocation Bonds
$ 19,670,000
-
(1,260,000)
18,410,000
1,325,000
1995 Housing Tax Allocation Bonds
16,333,872
-
(307,022)
16,026,850
318,831
1998 Tax Allocation Bonds
15,760,000
-
-
15,760,000
-
2001 Tax Allocation Bonds
46,124,932
64,658
-
46,189,590
-
2002 Tax Allocation Bonds
38,389,904
53,670
-
38,443,574
565,000
Pass-through agreement payable:
Coachella Valley Unified School District
8,063,172
-
(697,918)
7,365,254
711,877
Advances from City of La Quinta
4,907,565
6,595,757
-
11,503,322
-
Project Area No. 2:
1995 Housing Tax Allocation Bonds
4,416,128 -
(82,978)
4,333,150
86,169
1998 Tax Allocation Bonds
6,505,000 -
(90,000)
6,415,000
90,000
Due to County of Riverside
2,250,000 -
(100,000)
2,150,000
100,000
Advances from City of La Quinta
7,614,325 1,963,675
9,578,000
Total long-term liabilities
$170.034.A9$ M=
(2.537.918)
170,174.7403,126.87
20
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
8) Tax Allocation Bonds
Tax Allocation Refunding Bonds, Series 1994
Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance
certain capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds ranges from 3.80% to 8% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the bonds
are payable solely from pledged tax increment revenues. The bonds are not subject to
redemption prior to maturity. There are certain limitations regarding the issuance of parity
debt as further described in the official statement. A portion of the proceeds was used to
obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2003 is $18,410,000.
Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued
by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.201/t, to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable from pledged tax increment revenues. There are certain limitations
regarding the issuance of parity debt as further described in the official statement.
Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter,
through September 1, 2028, at a price equal to the principal amount thereof plus accrued
interest. A portion of the proceeds was used to obtain a ,surety agreement to satisfy the
bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is
$15,760,000.
Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,400 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 2.
21
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued
Interest rates on the bonds range from 3.75% to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable solely from pledged tax increment revenues of Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and
September 1, 2019, respectively, and on each September 1 thereafter at a price equal to
the principal amount thereof plus accrued interest. There are certain limitations regarding
the issuance of parity debt as further described in the official statement. A portion of the
proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement.
The principal balance of outstanding bonds at June 30, 2003 is $6,415,000.
Tax Allocation Bonds, Series 2001 — Project Area No. 1_
On August 15, 2001, the Agency issued tax allocation bonds in the amount of
$48,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project
Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and
issuance costs of $1,517,325.
The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature
on September 1, 2021.and $30,720,000 of term bonds that accrue interest at 5.18% and
mature on September 1, 2031. The interest and principal on the bonds are payable from
pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is
$46,189,590 ($48,000,000 net of unamortized discount and issuance costs of $1,810,410).
Tax Allocation Bonds, Series 2002 — Project Area No. 1
On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000
to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1.
The 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs
of $1,250,096. At June 30, 2003, the unexpended balance of bond proceeds is
$1,014,486.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest
rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on
March 1 and September 1 of each year until maturity. Term bonds accrue interest at
5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The
interest and principal on the bonds are payable from pledged tax increment revenues.
22
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is
$38,443,574 ($40,000,000 net of unamortized discount and issuance costs of $1,556,426).
23
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
The minimum annual requirements (including sinking fund requirements) to amortize tax allocation bonds as of
June 30, 2003 are as follows:
S 18,410,000 7,447,434 15,760,000 15,622,880 48,000,000 51,050,855 40,000,000 41,997,228 6,415,000 6,478,780
24
Project Area No. 1
Project Area No. 2
1994 Tax Allocation Bonds
1998 Tax Allocation Bonds
2001 Tax Allocation Bonds
2002 Tax Allocation Bonds
1998 Tax Allocation Bonds
June 30
Principal Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
2004
$ 1,325,000 1,274,465
819,520
-
2,430,720
565,000
1,905,825
90,000
327,080
2005
1,430,000 1,182,140
819,520
2,430,720
575,000
1,895,131
95,000
323,264
2006
1,510,000 1,087,700
-
819,520
2,430,720
585,000
1,882,361
100,000
319,168
2007
1,620,000 973,455
819,520
2,430,720
600,000
1,867,091
105,000
314,785
2008
1,740,000 850,815
819,520
2,430,720
615,000
1,849,617
110,000
310,135
2009
1,865,000 719,233
819,520
2,430,720
635,000
1,829,914
115,000
305,184
2010
2,000,000 578,160
819,520
2,430,720
660,000
1,807,557
120,000
299,550
2011
2,145,000 426,868
-
819,520
-
2,430,720
680,000
1,782,926
125,000
293,272
2012
2,305,000 264,443
-
819,520
2,430,720
705,000
1,756,430
130,000
286,737
2013
2,470,000 90,155
-
819,520
2,430,720
735,000
1,727,981
140,000
279,819
2014
- -
655,000
802,490
1,565,000
2,391,595
705,000
1,695,656
145,000
272,516
2015
-
690,000
767,520
1,645,000
2,311,345
735,000
1,659,656
150,000
264,956
2016
-
725,000
730,730
1,730,000
2,226,970
770,000
1,622,031
160,000
257,013
2017
- -
765,000
691,990
1,815,000
2,138,345
810,000
1,582,531
170,000
248,556
2018
- -
800,000
651,300
1,905,000
2,045,345
855,000
1,540,906
175,000
239,716
2019
-
845,000
608,530
2,000,000
1,947,720
895,000
1,497,156
185,000
230,491
2020
-
890,000
563,420
2,100,000
1,845,220
940,000
1,451,281
195,000
220,631
2021
935,000
515,970
2,205,000
1,737,595
985,000
1,403,156
205,000
210,131
2022
985,000
466,050
2,315,000
1,624,595
1,035,000
1,352,656
215,000
199,106
2023
-
1,035,000
413,530
2,430,000
1,504,755
1,090,000
1,299,531
230,000
187,425
2024
-
1,090,000
358,280
2,555,000
1,377,637
1,140,000
1,243,069
240,000
175,087
2025
-
1,145,000
300,170
2,685,000
1,244,018
1,200,000
1,183,106
255,000
162,094
2026
-
1,205,000
239,070
2,820,000
1,103,640
1,265,000
1,119,941
265,000
148,444
2027
-
1,265,000
174,850
2,965,000
956,123
1,330,000
1,053,444
280,000
134,138
2028
-
1,330,000
107,380
3,120,000
800,955
1,395,000
983,615
295,000
119,044
2029
-
1,400,000
36,400
3,275,000
637,882
1,470,000
910,200
310,000
103,163
2030
- -
-
-
3,445,000
466,523
3,015,000
795,272
325,000
86,494
2031
-
-
3,620,000
286,365
3,170,000
636,781
345,000
68,906
2032
-
-
3,805,000
97,027
3,335,000
470,091
360,000
50,400
2033
-
-
-
-
7,505,000
192,316
380,000
30,975
2034
-
-
-
-
400,000
10,500
S 18,410,000 7,447,434 15,760,000 15,622,880 48,000,000 51,050,855 40,000,000 41,997,228 6,415,000 6,478,780
24
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(9) 1995 Housing Tax Allocation Bonds
La Quinta Redevelopment Project Areas Nos. 1 and 2 1995 Housing Tax Allocation
Bonds, were issued by the Agency, July 1, 1995, in the amount of $22,455,000 to
increase, improve and/or preserve the supply of low and moderate income housing in the
City.
Interest is payable semi-annually on March 1 and September 1 of each year commencing
March 1, 1996. Interest payments range from 4% to 6% per annum. The interest and
principal of the bonds are payable from pledged tax increment revenues of both project
areas.
Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2011 and on each September 1, thereafter,
through September 1, 2025, at a price equal to the principal amount plus accrued interest.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity debt as
further described in the official statement. The principal balance of outstanding bonds at
June 30, 2003 is $20,360,000.
25
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(9) 1995 Housing; Tax Allocation Bonds, (Continued)
The minimum annual requirements (including sinking fund requirements) to amortize
housing tax allocation bonds as of June 30, 2003 are as follows:
20,360,000 17,044.345
26
1995 Housing
TAB's
June 30
Principal
Interest
2004
$405,000
1,183,538
2005
425,000
1,162,990
2006
450,000
1,140,890
2007
530,000
1,115,502
2008
560,000
1,086,470
2009
590,000
1,055,125
2010
620,000
1,021,540
2011
655,000
985,840
2012
695,000
946,650
2013
735,000
903,750
2014
780,000
858,300
2015
825,000
810,150
2016
875,000
759,150
2017
925,000
705,150
2018
985,000
647,850
2019
1,040,000
587,100
2020
1,105,000
522,750
2021
1,170,000
454,500
2022
1,240,000
382,200
2023
1,315,000
305,550
2024
1,395,000
224,250
2025
1,475,000
138,150
2026
1,565,000
46,950
20,360,000 17,044.345
26
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(10) Due to County of Riverside
Project Area No. 2
Based on an agreement dated July 5, 1989 between the Agency and the County, until the
tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to
the County 50% of the County portion of tax increment. At the County's option, the
County's pass-through portion can be retained by the Agency to finance new County
facilities or land costs that benefit the County and serve the La Quinta population. Per the
agreement, the Agency must repay all amounts withheld from the County. The tax
increment is to be paid to the County in amounts ranging from $100,000 to $250,000
over a payment schedule through June 30, 2015. Interest does not accrue on this
obligation. The balance at June 30, 2003 is $2,150,000.
The minimum annual requirement to amortize due to County of Riverside as of June 30,
2003 are as follows:
June 30
Princes
2004
$100,000
2005
100,000
2006
100,000
2007
100,000
2008
150,000
2009
200,000
2010
200,000
2011
200,000
2012
250,000
2013
250,000
2014
250,000
2015
250.000
$2,150,000
(11) Notes Payable to Coachella Valley nified 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 a portion of tax increment revenue associated with properties within
District confines. Such payments are subordinate to other indebtedness of the Agency
incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax
increment is paid to the District over a payment schedule through August 1, 2012 in
amounts ranging from $474,517 to $834,076 for a total amount of $15,284,042. Tax
increment payments outstanding at June 30, 2003 totaled $7,365,254. The District agrees
to use such funds to provide classroom and other construction costs, site acquisition,
school buses, expansion or rehabilitation of current facilities.
27
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(11) Notes Payable to Coachella Valley Unified School District, (Continued)
The minimum annual requirements to amortize payable to Coachella Valley Unified School
District as of June 30, 2003 are as follows:
June 30
Principal
2004
$ 711,877
2005
726,114
2006
740,636
2007
755,449
2008
770,558
2009
785,968
2010
801,688
2011
817,722
2012
834,076
2013
421,166
7 365 254
(12) Advances from the City_of La Quinta
The City of La Quinta advances money to the Redevelopment Agency to cover operating
and capital shortfalls. There is no stipulated repayment date established for the City
advance. Interest accrues at 10% per annum. At June 30, 2003, the outstanding balances
for Project Area No. 1 and Project Area No. 2 are $5,398,322 and $9,578,000,
respectively.
In addition, the City of La Quinta advanced money to Project Area No. 1 in the amount of
$6,105,000 with interest accruing at 7% per annum. The maturity date for this advance is
November 29, 2033.
(13) Pledged Tax Revenues
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 used to meet
debt service requirements of the bond indentures before any payments may be made on
other obligations of the Agency.
28
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
4) Transfers In and Out
The following transfers were made during the year ended June 30, 2003:
Transfers to the Debt Service — Project Area No. 1 Fund from:
Special Revenue — Low/Moderate Income
Housing — Project Area No. 1
Transfers to the Debt Service — Project Area No. 2 Fund from:
Special Revenue — Low/Moderate Income
Housing — Project Area No. 2
Transfer to the Capital Project — Project Area No. 1 Fund from:
Debt Service — Project Area No. 1
Transfer to the Capital Project — Project Area No. 2 Fund from:
Debt Service — Project Area No. 2
Total transfers
$ 1,738,783 (A)
338,895 (A)
6,000,000 (B)
1,100,000 (B)
$ 9,177,678
(A) $1,738,783 and $338,895 were transferred to the Debt Service — Project Area No.
1 and 2 Funds from the Low/Moderate Income Housing — Project Area No. 1 and
2 Funds for debt service payments on the 1995 Housing Tax Allocation Bonds.
(B) Proceeds of advances were transferred to the respective Capital Projects Funds to
provide financing for certain capital projects.
(15) Educational Revenue Augmentation Fund (ERAF) Payment
During fiscal year ended June 30, 2003, Chapter 1127 of the 2002 Statutes of the State of
California require redevelopment agencies to shift $75 million in property tax revenue to
kindergarten through twelfth grade schools and community colleges. The State
Department of Finance has determined that the La Quinta Redevelopment Agency
amount is $723,518 of the $75 million which was forwarded to the Riverside County
Auditor in accordance with the statute.
29
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REQUIRED SUPPLEMENTARY INFORMATION
30
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31
LA QUINTA REDEVELOPMENT AGENCY
Notes to Required Supplementary Information
Year ended June 30, 2003
(1) Budgets and Budgetary Accounting
The Agency adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds. The City Manager or his designee is authorized to
transfer budgeted amounts between the accounts of any department. Revisions that alter
the total appropriations of any department or fund are approved by City Council.
Appropriations were $3,318,296 during the year. Prior year appropriations lapse unless
they are approved for carryover into the following fiscal year. Expenditures may not
legally exceed appropriations at the department level. Reserves for encumbrances are not
recorded by the City of La Quinta.
32
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Income Housing Fund - PA No. 1
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2003
Excess (deficiency) of
revenues over (under)
expenditures 713,481 (1,969,667) 1,862,485 31832,152 1,420,603
Other financing sources (uses):
Variance with
Prior
Sale of capital assets
Budget
150,000
-
Final Budget
Year
Transfers in
Original
Final
Actual
Positive (negative)
Actual
Revenues:
(1,738,783)
(3,953,426)
(3,286,801)
666,625
(1,737.006)
Taxes
$ 4,512,181
5,035,033
5,271,524
236,491
4,488,487
Developer fees
-
-
-
-
48,584
Investment income
200,000
200,000
36,406
(163,594)
266,302
Rental income
341,000
341,000
376,863
35,863
321,145
Miscellaneous revenues
-
-
280,752
280,752
25,418
Total revenues
5,053,181
5,576,033
5,965,545
389,512
5.149936
Expenditures:
Current:
Planning and development
4,339,700
7,545,700
4,103,060
3,442,640
3,729,333
Total expenditures
4,339,700
7,545,700
4,103,060
3,442,640
3,729,333
Excess (deficiency) of
revenues over (under)
expenditures 713,481 (1,969,667) 1,862,485 31832,152 1,420,603
Other financing sources (uses):
Sale of capital assets
150,000
150,000
-
(150,000)
146,603
Transfers in
-
1,825,000
-
(1,825,000)
-
Transfers out
(1,738,783)
(3,953,426)
(3,286,801)
666,625
(1,737.006)
Total other financing
sources (uses)
(1,588,783)
(1,978,426)
(3,286,801)
(1,308,375)
x(1,590 403)
Net change in fund balances
(875,302)
(3,948,093)
(1,424,316)
2,523,777
(169,800)
Fund balances at beginning of year
5,537,486
5,537,486
5,537,486
-
__ 5,707,286
Fund balances at end of year
$ 4,662,184
1,589,393
4,113,170
2,523,777
5,537,486
33
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Income Housing Fund - PA No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Year ended June 30, 2003
Budget
Original Final Actual
$ 1,896,343 2,360,051 2,479,241
20,700 38,207 129,263
1,917,043 2,398,258 2,608,504
Variance with
Prior
Final Budget
Year
Positive (negative)
Actual
119,190 2,025,212
91,056 115,747
210,246 2.140,959
1,771,247
1,883,543
765,795
1,117,748
682,702
1,771,247
1,883,543
765,795
1,117,748
682,702
145,796
514,715
1,842,709
1,327,994
1,458,257
-
801,358
-
(801,358)
-
-
16,964
19,861
2,897
(338,442)
(338,895)
4,448,587)
585,75
3,862,834
(164,568)
(338,895)
(3,630,265)
(565,892)
3,064,373
(503,010)
(193,099)
(3,115,550)
1,276,817
4,392,367
955,247
4,706,093
4,706,093
4,706,093
-
3,750,846
$ 4,512,994
1,590,543
5,982,910
4,392,367
4,706,093
34
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Bond Fund - PA No. 1
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2003
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Investment income $ - - 11,949 11,949 62,674
Total revenues - - 11,949 11,949 62,674
Other financing sources (uses)
Transfers to the City
of La Quinta - - _ _ 832,930)
Total other financing
sources (uses) - - - - (832,930
Net change in fund balances - - 11,949 11,949 (770,256)
Fund balances at beginning of year 62,674 62,674 62,674 - 832,930
Fund balances at end of year 62,674 62,674 74rt623 11, 949 62,674
35
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Bond Fund - PA No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2003
Variance with Prior
Bud et Final Budget Year
Original Final Actual Positive (negative} Actual
Revenues:
Investment income $ -
Total revenues -
Other financing sources (uses):
Transfers to the City
of La Quinta -
2,898
2,898
2,898
2,898
16,964
16,964
(2,375,928) _ (2,378,826) (2,898) (223,917)
Total other financing
sources (uses) - (2,375,928) (2,378,826)
Net ck anL)7e in fund balances - (2,375,928) (2,375,928)
Fund balances at beg-inuung of year 2,375,928 2,375,928 2,375,928
Fund balances at end of year $ 2,375,928 - -
36
(2,898) (223,917)
- (206,953)
2,582,881
2,375,928
CONRADAND
CERTIFIED PUBLIC ACCOUNTANTS
00
ASSOCIATES, L.L.P. 2301
DUPONT CALIFORNAI92612
Board of Directors (949) 474-2020
Fax (949) 263-5520
La Quinta Redevelopment Agency
La Quinta, California
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
We have audited the financial statements of the La Quinta Redevelopment Agency as of and for the
year ended June 30, 2003, and have issued our report thereon dated August 14, 2003. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the financial statements of the La Quinta
Redevelopment Agency are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grants, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. Such
provisions include those provisions of laws and regulations identified in the Guidelines for
Compliance Audits of California Redevelopment Agencies, issued by the State Controller. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the La Quinta Redevelopment Agency's
internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. Our consideration of the internal control over financial
reporting would not necessarily disclose all matters in the internal control over financial reporting
that might be material weaknesses. A material weakness is a condition in which the design or
operation of one or more misstatements in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over financial reporting and its operation that we consider to be
material weaknesses.
This report is intended solely for the information and use of the Audit committee, management, and
the State Controller and is not intended to be and should not be used by anyone other than those
specified parties.
August 14, 2003
37
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