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1991/92 General Purpose Financial Statement & Supplemental DataOF LA Ljinta, ( Dse Fin; anu bupplemE Year ended Ju CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1992 TABLE OF CONTENTS Exhibit Page Independent Auditors' Report I General Purpose Financial Statements: • Combined Balance Sheet - All Fund Types and Account Groups AA 2 • Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types BB • Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types CC 6 • Notes to Financial Statements: Note 1 - Summary of Significant Accounting Policies 8 Note 2- Prior Period Adjustments 13 Note 3- Cash and Investments 14 Note 4- Property Taxes 16 Note 5- Fixed Assets 17 Note 6- General Long -Term Debt 17 Note 7- Obligation Under Capital Lease 17 Note 8- Tax Allocation Bonds 18 Note 9- 1991 Local Agency Revenue Bonds, Series 1991 19 Note 10- Due to County of Riverside 19 Note 11 - Notes Payable to Desert Sands Unified School District 19 Note 12- Notes Payable to Coachella Valley Unified School District 20 Note 13 - Notes Payable to Individuals 20 Note 14- Advances from the City of La Quinta 20 Note 15- Debt Service Requirements to Maturity 21 Note 16- Debt Without Governmental Commitment 22 Note 17- Reserves and Designation of Fund Equity 22 Note 18- Deferred Compensation 23 Note 19- City Employee Retirement Plan (Defined Benefit Pension Plan) 23 Note 20 - Lease Commitments/Claims Payable/Self Insurance 26 Note 21 - Accumulated Fund Deficit 27 Note 22 - Expenditures in Excess of Appropriations 28 Note 23 - Due From and To Other Funds 28 Note 24 - Contingencies 28 CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1992 TABLE OF CONTENTS • Low Income Housing Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Fund: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances • Redevelopment Agency Project Area No. I Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances • Assessment District 88-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Assessment District 89-2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Assessment District 90-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Exhibit Page A-10 41 B-1 44 B-2 45 B-3 46 B-4 47 B-5 48 C-1 50 C-2 52 C-3 54 C-4 55 C-5 56 CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1992 TABLE _OF_CONTENTS • Assessment District 91-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Assessment District 92-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Infrastructure Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Agency Funds: • Combining Balance Sheet - All Agency Funds • Statement of Changes in Assets and Liabilities - All Agency Funds Exhibit Page C-6 57 C-7 58 C-8 59 C-9 60 C-10 61 C-11 62 D-1 64 D-2 65 (This page intentionally left blank) CONPAD 1 V D CERTIFIED PUBLIC ACCOUNTANTS � SSOCIA `E 1100 MAIN STREET, SUITE C 1 J IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-2020 The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of La Quinta, California as of and for the year ended June 30, 1992, as listed in the table of contents. These general purpose financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these general purpose 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 general purpose 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 that our audit provides a reasonable basis for our opinion. In our opinion, the aforementioned general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of La Quinta, California as of June 30, 1992, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. As discussed in Note 23, the City is a defendant in lawsuits from other municipal investors whose investments were mismanaged by an outside investment advisor utilized by the City. The ultimate outcome of this uncertainty cannot be presently determined. Accordingly, the accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual funds, and individual account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of La Quinta, California. Such 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. ahaW .0 saubf-e—f September 4, 1992 —1— MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CITY OF LA QUINTA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1992 Assets and other debits Cash and investments (note 3) Cash with fiscal agent (note 3) Accounts receivable Interest receivable Loans receivable Due from other funds (note 23) Due from other governments Deposits Advances to other funds (note 14) Property, plant and equipment (note 5) Amounts available in debt service Amount provided for general long-term debt Total assets and other debits Liabilities and Fund Eauit Liabilities: Accounts payable Accrued expenses Due to other funds (note 23) Compensated absences payable (note 6) Deposits payable Claims and judgements payable Obligations under capital lease (note 20) Deferred compensations payable (note 18) Retentions payable Due to other governments Advances from other funds (notes 5, 14 and 15) Obligations under pass through agreements (notes 5, 10, 11, 12 and 15) Tax allocation bonds payable (notes 6, 8 and 15) Revenue bonds (note 9) Notes payable (notes 13 and 15) Total liabilities Fund equity: Investment in general fixed assets Fund balances (note 17) Reserved: Debt service Advances to other funds Loans receivable Deposits Unreserved: Designated for special projects Designated for equipment replacement Undesignated Total fund balances Total fund equity Total liabilities and fund equity Governmental Fund Types Special Debt Capital General Revenue Service Projects $ 508,171 6,923,740 3,385,953 19,638,454 - - 3,120,667 4,352,226 121,818 - - 1,299 34,518 - - 118,074 - - - 65,702 57,906 303,987 386,543 26,615 - - - 6,166,446 - - 7.041.34 6.981.646 6.810.607 24.378.522 $1,293,103 54,770 - 888,376 25,220 12,155 - 217 - - - 118,074 81,692 34,840 - 77,100 - - 769,772 219,951 - 1.400.015 101.765 219.951 1.853.539 - - 6,590,656 - 6,166,446 - - 34,518 - - - 26,615 - - - - 6,879,881 - 22,524,983 76,323 - - - (662.573) - 5.641.329 6,879.881 6.590,656 22.524.983 __$.641,329 6,879.881 6,590,656 22,524.983 $7.041.344 f.9 j4� 810.607 4.378.522 See accompanying notes to financial statements. -2- EXHIBIT AA Account Groups Fiduciary Fund Types General General Totals Agency Fixed Asset longrTerm Debt (Memorandum Only) 1,511,185 - - 31,967,503 - - - 7,472,893 - - 123,117 34,518 118,074 32,608 - - 846,746 - - - 26,615 - - - 6,166,446 - 12,462,249 - 12,462,249 - 10,824,808 10,824,808 - 67,145 475 67.145.475 543.79312.462.249 .931 137.188.444 2,236,249 37,592 118,074 - - 161,593 161,593 1,342,617 - - 1,536,249 - - 21,955 21,955 - - 21,562 21,562 201,176 - - 201,176 - - - 769,772 - - 8,219,503 8,219,503 - - 6,166,497 6,166,497 - - 17,657,673 17,877,624 - - 35,000,000 35,000,000 - - 8,515,000 8,515,000 - 2,206,500 2.206,500 1,543,793 77.970,283 83,089,346 12,462,249 - 12,462,249 6,590,656 6,166,446 34,518 26,615 - - 29,404,864 76,323 - - (662,573) 41,636.849 12,462,249 54„099.098 12.462.249 77.970.283 7.1 X444 -3- (This page intentionally left blank) -4- EXHIBIT BB CITY OF LA QUIHTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year Ended June 30, 1992 Other financing sources (uses): Operating transfers in Operating transfers out Transfer to agency fund Proceeds of bonds (net of bond issuance costs of $291,065) Proceeds of advances from City Proceeds from notes Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated (note 2) Residual equity transfer Fund balances at end of year 203,306 - 824,730 (1,530,324) (311,568) (1.530.324) 716,468 2,573,407 2,352,651 (259,550) (4,869,814) (143,984) -- 18,623,566 508,456 8,311,676 11.240.296) 2,822,313 23 033,799 (1,787,683) 1,496,255 2,644,256 12,828,545 8,604,184 4,208,454 3,946,400 9,696,438 (1,175,172) 1,175,172 - 5.641.329 .879 88 6,, 5.20-,65k 22.524.983 See accompanying notes to financial statements. -5- 5,129,364 (5,129,364) (143,984) 18,623,566 9,644,862 (3,082,1$8) 25.042.256 15,181,373 26,455,476 41, 63.x,_849 Special Debt Capital Totals General Revenue Service Projects (Memorandum Only) Revenues: Taxes $3,135,044 1,903,385 9,986,924 15,025,353 Licenses and permits 576,293 -- - 576,293 Charges for services 488,015 - - 15 488,030 Fines and forfeitures 9,043 - - - 9,043 Developer fees - 41,314 - 650,964 692,278 Intergovernmental 921,460 223,228 - - 1,144,688 Interest 261,380 281,421 420,921 1,109,778 2,073,500 Miscellaneous 120,867 13,888 - 111,353 246,108 Special assessments 536.464 - 233,918 770,382 Total revenues 5,512,102 2,999,700 10,407,845 2,106,028 210675 Expenditures: General government 1,921,155 3,904 - 723,969 2,649,028 Public safety 2,155,813 - - - 2,155,813 Community services 157,897 - - - 157,897 Planning and development 904,171 552,620 - - 1,456,791 Public works 618,612 888,197 - - 1,506,809 Capital projects 11,813 775,192 - 11,587,313 12,374,318 Debt service: Principal - - 550,000 - 550,000 Interest - - 2,431,232 - 2,431,232 Payment of advances - - 6,150,707 - 6,150,707 Interest accrued on advances - - 505,696 - 505,696 Payments under pass through agreements - - 94$.267 948,267 Total expenditures 5,769,461 2,219,913 10,585,902 12,311,282 30,886,558 Excess (deficiency) of revenues over expenditures (257,359) 779,787 X178,057) (10,205.254) 19,860,883) Other financing sources (uses): Operating transfers in Operating transfers out Transfer to agency fund Proceeds of bonds (net of bond issuance costs of $291,065) Proceeds of advances from City Proceeds from notes Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated (note 2) Residual equity transfer Fund balances at end of year 203,306 - 824,730 (1,530,324) (311,568) (1.530.324) 716,468 2,573,407 2,352,651 (259,550) (4,869,814) (143,984) -- 18,623,566 508,456 8,311,676 11.240.296) 2,822,313 23 033,799 (1,787,683) 1,496,255 2,644,256 12,828,545 8,604,184 4,208,454 3,946,400 9,696,438 (1,175,172) 1,175,172 - 5.641.329 .879 88 6,, 5.20-,65k 22.524.983 See accompanying notes to financial statements. -5- 5,129,364 (5,129,364) (143,984) 18,623,566 9,644,862 (3,082,1$8) 25.042.256 15,181,373 26,455,476 41, 63.x,_849 CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types Year Ended June 30, 1992 Revenues: Taxes Licenses and permits Charges for services Fines and forfeitures Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Public safety Community services Planning and development Public works Capital projects Debt Service: Principal Interest Payment of advances Interest accrued on advances Payments under pass through agreements Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses: Operating transfers in Operating transfers out Transfer to agency fund Proceeds of bonds payable Proceeds of advances from City Proceeds of notes Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated Residual equity transfer Fund balances at end of year General Fund Variance - Favorable Budget Actual (Unfavorable) $3,403,300 3,135,044 (268,256) 531,800 576,293 44,493 270,250 488,015 217,765 20,000 9,043 (10,957) 933,821 921,460 (12,361) 560,000 261,380 (298,620) 65,981 120,867 54,886 5,785,152 5,512,102 (273,050 1,745,397 1,921,155 (175,758) 2,139,910 2,155,813 (15,903) 160,484 157,897 2,587 1,116,114 904,171 211,943 547,000 618,612 (71,612) 110,000 11,813 98,187 5,818.905 5,769,461 49,444 (33.753) (257,359) (223,606) - (1,530,324) (1,530,324) - (1,530,324) (1,530,324) (33,753) (1,787,683) (1,753,930) 8,604,184 8,604,184 (1,175,172) (1,175,172) 8.570.43 5.641.329 (2 2 1 2) See accompanying notes to financial statements. —6— EXHIBIT CC Special Revenue Funds Debt Service Funds Capital Projects Funds Variance- Variance- Variance - Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorablel Budget Actual (Unfavorable) 1,605,401 1,903,385 297,984 8,811,567 9,986,924 1,175,357 - - - - - - - - - - 15 15 154,375 41,314 (113,061) - - - 660,000 650,964 (9,036) 199,000 223,228 24,228 - - - - - - 213,200 281,421 68,221 651,200 420,921 (230,279) 606,667 1,109,778 503,111 - 13,888 13,888 - - - - 111,353 111,353 565,242 536,464 (28,778) - - 233,918 233.918 2,737.218 2,999,700 262,482 9,462,767 10,407,845 945,078 1.266.667 2.106.028 839,361 37,800 3,904 33,896 - - - 1,346,501 723,969 622,532 1,015,941 552,620 463,321 - - - - - - 1,041,441 888,197 153,244 - - - - - - 1,270,000 775,192 494,808 - - - 20,654,612 11,587,313 9,067,299 - - - 708,353 550,000 158,353 - - - - - 2,613,827 2,431,232 182,595 - -- - - - 431,000 6,150,707 (5,719,707) - - - - - - - 505,696 (505,696) - - - 1,381,157 948,267 432,890 3,365,182 2.219,913 1,145..269 5,134,337 10,585.902 (5.451.565) 22,001,113 12.311,282 9,689,831 (627.964) 779,787 1.407,751 4,328,430 (178,057) (4,506,487) (20,734,446) (10,205,254] 10,529,192 203,306 203,306 - 2,573,407 2,573,407 - 2,352,651 2,352,651 - - - (259,550) (259,550) - (4,869,814) (4,869,814) _ - (143,984) (143,984) - - _ - - 16,197,852 18,623,566 2,425,714 - 824,730 824,730 - 508,456 508,456 1,020,136 8,311,676 7,291,540 - (311,568) (311,568) - - - - (1,240.296) (1,240,296) 716,468 716,468 2,822,313 2,822,313 17,217,988 23,033.799 5,815.811 (627,964) 1,496,255 2,124,219 4,328,430 2,644,256 (1,684,174) (3,516,458) 12,828,545 16,345,003 4,208,454 4,208,454 - 3,946,400 3,946,400 - 9,696,438 9,696,438 - 1,175.172 1,175,172 - - - 3.580.420 ti•S7 3.299.391 $.274..$_ 6.590.656 (1.684.174) 6.179.980 22.524.983 1 .345.003 CITY OF LA QUINTA Notes to the Financial Statements June 30, 1992 (1) Summary-pf Significant Acepunting Policies (a) Reporting Entity The City of La Quinta was incorporate May 1, 1982 under the general laws of the State of California. The City operates under the Council - Manager form of government. The City provides the following services as authorized by its general laws: Public Safety, Highways and Streets, Health and Social Services, Cultural -Leisure, Public Improvements, Planning and Zoning, Community Development and General Administrative Services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. In accordance with Statement 3 of the National Council on Governmental Accounting, the City has included within its reporting entity for financial reporting purposes, all agencies over which the City exercises oversight responsibility. The following criteria were considered in determining the extent to which City Council exercised oversight responsibility: selection of governing authority, designation of management, ability to significantly influence operations, approval of budgets, accountability for fiscal matters, and financial interdependency. The La Quinta Redevelopment Agency and La Quinta Financing Authority are included within the scope of the reporting entity of the City because it met all of the above-mentioned criteria. For presentation within the general purpose financial statements of the governmental reporting entity, the transactions between these organizations and the City are reported as interfund transactions. The following governmental agencies provide services to the residents of the City but were excluded from the scope of the reporting entity of the City because the City does not exercise oversight responsibility over these agencies: State of California County of Riverside Coachella Valley Joint Powers Insurance Authority Greater Palm Springs Convention and Visitors Bureau Joint Power Authority (b) Frond Accounting The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity with a self -balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. -8- CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Fund Accounting. (Continued) The accounting records of the City are organized on the basis of funds and account groups classified for reporting purposes as follows: GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include the general operating expenses and capital improvement costs which are not paid through other funds. Special Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law or administrative action for specific purposes. Debt Service Fund The Debt Service Funds are used to account for resources set aside for repayment of general long term debt. Capital Project Funds Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. FIDUCIARY FUNDS Agency Fun s The Agency Funds are used to account for assets held by the City in an agency capacity for individuals, private businesses and other governmental agencies. ACCOUNT GROUPS General Fixed Assets Account Group The General Fixed Assets Account Group is used to account for the costs of fixed assets acquired to perform general government functions. —9— CITY OF LA QUINTA Notes to the Financial Statements (Continued) fl -Summary of Significant Accounting Policies. (Continued) (b) Fund Accounting, :(,Continued) Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Fixed asset records include estimates of original historical cost as determined by knowledgeable individuals in the City. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided on general fixed assets. General Long—Term-Debt Account Group The General Long—Term Debt Group is used to account for all long—term debt of the City, except that accounted for in the proprietary funds. (c) Measurement Focus and Basis of Accounting Governmental (general, special revenue, debt service and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The modified accrual basis of accounting is followed by the governmental and agency funds. Under the modified accrual basis of accounting, revenues are susceptible to accrual when they become both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long—term debt, are recorded when a current liability is incurred. Liabilities are considered current when they are normally expected to be liquidated with expendable available financial resources. —10— CITY OF LA QUINTA Notes to the Financial Statements (Continued) 1 Summary -of Significant An in P li i Continu d (c) Measurement Focus and Basis of Accounting, (Continued) Taxes, subventions, and entitlements held at year—end by an intermediary collecting government are recognized as revenue under the modified accrual basis of accounting. Reimbursement grant revenues are recognized when the related expenditures are incurred. Revenues from the use of money and property are recorded when earned. Material delinquent and total uncollected current year property taxes (net of estimated uncollectibles) are recorded as current year receivables. Property taxes (net of estimated uncollectibles) that are levied and measureable in the current year, but not available to finance current period expenditures, are recorded as a receivable and as deferred revenues. The deferred revenues are recognized as revenue in the fiscal year in which they become available. Licenses, permits, fines, forfeits, charges for services, taxpayer—assessed taxes and miscellaneous revenues are recorded as governmental fund revenues when received in cash because they are generally not measurable until actually received. (d) Budgetary Data The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds, except for the debt service funds. Alternatively, effective budgetary control is achieved for debt service funds through the contractual requirements of bond indenture provisions. Budget modifications and supplemental appropriations were necessary during the year. 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. Prior year appropriations lapse unless they are reappropriated through the formal budget process. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. (e) Interfund Transfers Nonrecurring transfers of equity between funds are reported as an adjustment to beginning fund balance. Operating transfers are reported as other sources and uses of funds in the statement of revenues, expenditures, and changes in fund balance. (f) Advances to Other Funds Long—term interfund advances are recorded as a receivable and in the long—term debt account group. —11— CITY OF LA QUINTA Notes to the Financial Statements (Continued) 1 Summary of Significant Ac=wIng P 1i i s Contin d) (g) Investments Investments are valued at cost. An estimated loss is accrued for an impairment of investment market value when it is probable that the loss will become realized and the amount of loss can be reasonably estimated. In management's opinion, it is not probable that the temporary declines in the market value of the City's investments will become realized because it is management's intention to hold the investments to maturity or until the market value of the investments equals or exceeds their cost. Therefore, temporary market value declines are not reflected in the accompanying financial statements. Any losses resulting from a permanent decline in investment market values are recorded as a reduction of interest income. (h) Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short—term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of La Quinta. (i) Due from Other Governments The amounts recorded as a receivable due from other governments include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County and City Governments and unremitted to the City as of June 30, 1992. The County of Riverside assesses, bills, and collects property taxes for the City. 0) Employee Leave Benefits Sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 days per type of leave. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage increases by 25% for each five year period thereafter until the employee is entitled to 75% of the value of his unused sick leave. This will occur upon the completion of ten years of continuous employment. In accordance with Financial Accounting Standards Board (FASB) Statement No. 43, the non—vested sick leave benefits (those that are not payable in the event of employee termination) in the amount of $94,040 are considered contingent liabilities and are not reflected in the accompanying financial statements. —12— CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continu d) (k) Claims and Judgments The City records a liability for material litigation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. (1) Capital Projects Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. (m) Memorandum Only Totals Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. Interfund balances and transactions have not been eliminated and the columns do not present consolidated financial information. (n) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. (2) Prior Period Adjustments The accompanying financial statements reflect certain adjustments to the opening fund balances. The equipment replacement reserve has been included as a part of the General Fund for financial statement purposes. In addition, the passthrough accrued liability to the County of Riverside in the amount of $146,394 was overstated in Project Area No. 2 Debt Service Fund. The analysis of passthrough agreements indicates that monies are directly apportioned to the County of Riverside before tax increment revenue is distributed to the Agency. The effect of these matters on opening fund balances is as follows: General Debt Fund Service Fund balances at June 30, 1991, as previously reported $8,533,822 3,800,006 Inclusion of equipment replacement reserve 70,362 — Adjustment of passthrough liability _ 146394 Fund balance at June 30, 1991, as restated $8.604.184 .400 —13— CITY OF LA QUINTA Notes to the Financial Statements (Continued) (31 -,Cash and Investments Cash and investments held by the City at June 30, 1992 consisted of the following: Petty cash and change fund Deposits Investments Total Carrying Rate of Amount Interest $ 700 - 13,271,867 3.65% 26.167.829 3.3-5.45% $39.440.396 Cash and cash equivalents are classified in the accompanying combined balance sheet as follows: Cash and cash equivalents $31,967,503 Cash with fiscal agent 7,472,893 $39.440.396 The City and its component units are generally authorized under state statutes and local resolutions to invest in the following types of insurance: Demand deposits with financial institutions Savings accounts Certificates of deposit U.S. Treasury Securities Federal Agency Securities State of California notes or bonds Notes or bonds of agencies within the State of California Obligations guaranteed by the Small Business Administration Bankers' acceptances Commercial paper California Local Agency Investment Fund Deferred compensation investments held in a fiduciary capacity for City employees include investments legally authorized for the City as well as investments in mutual funds. Under the California Government Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. -14- CITY OF LA QUINTA Notes to Financial Statements (Continued) (3) Cash and Investments. (Continued) Deposits of cities and other state or local governments are classified in three categories to give an indication of the level of credit risk assumed by the City. Category 1 - includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 - includes deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent or Depository and subject to certain regulatory requirements under State law. Category 3 - includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits: Category Bank Carrying Form _of DepDsit 1 2 3 Balance Amount Demand deposits $100,000 12,538,745 - 12,638,745 12,771,867 Certificates of deposit 100.000 400,000 500,000 500.000 Total deposits $200,00 2.9, 38x745 13.138.745 13.271.867 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 City or the City's custodial agent (which must be a different institution other than the party through which the City purchased the securities) in the City's name. Investments held "in the City's name" include securities held in a separate custodial or fiduciary account and identified as owned by the City in the custodian's internal accounting records. Category 2 - includes uninsured and unregistered investments for which the securities are held in the City'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 City). 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 City's name. Category 3 also includes all securities held by the broker-dealer agent of the City (the party that purchased the securities for the City) regardless of whether or not the securities are being held in the City's name. -15- CITY OF LA QUINTA Notes to Financial Statements (Continued) 3 Cash and Investments, (Contin Mutual Funds Local Agency Investment Fund Total Investments Carrying Market Amount Value 1,755,884 1,755,884 24,411,945 24,411 945 $26 ,.� 26.167.829 The investments above are not classified by risk security because they do not represent an investment in securities. 4 Prop rty Taxes 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 go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes which are received from the County within sixty days after year end. Lien date March 1 Levy date June 30 Due dates November 1 and February 1 Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary sources 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. 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 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 of elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. —16— CITY OF LA QUINTA Notes to Financial Statements (Continued) (5) Fixed Assets A summary of changes in general fixed assets follows: * Auditor adjusted beginning general fixed asset to reflect fixed asset totals in accordance with Marshall and Stevens fixed asset report dated July 1, 1991. (6) Gineral Long, -Term Debt Changes in general long-term debt for the year ended June 30, 1992 were as follows: Balance at Balance at July 1, 1991 Additions Deletions Juiie 30, 1992 City: Compensated absences payable $ Claims payable Obligation under capital lease RDA Project Area No. 1: Tax allocation bonds Revenue bonds Due to County of Riverside Pass through agreements payable: Desert Sands Unified School District Coachella Valley Unified School District Notes payable - individuals Advances to other funds RDA Project Area No. 2: Notes payable - individuals Advances to other funds Total 248,598 Balance at 87,005 Balance at - 21,955 - June 30, 1991 43,125 June 30, 21,563 21,562 26,850,000 as Previously 550,000 1991, as - Balance at - Reported Adjustments' RestAted Additions Retirements June 30, 1992 Land $7,931,744 211,391 8,143,135 - 101,742 8,041,393 Equipment & furniture 523,917 (42,194) 481,723 36,002 - 517,725 Vehicles 422,300 (107,696) 314,604 14,497 - 329,101 Leasehold improvements 127,480 73,590 201,070 - - 201,070 Construction in progress 785,773 - 785,773 2,482,737 - 3,268,510 Buildings 104,450 104,350 - - 104,450 Total 9.791.21 10.030.755 2.533.23b 101,742 .462.249 * Auditor adjusted beginning general fixed asset to reflect fixed asset totals in accordance with Marshall and Stevens fixed asset report dated July 1, 1991. (6) Gineral Long, -Term Debt Changes in general long-term debt for the year ended June 30, 1992 were as follows: Balance at Balance at July 1, 1991 Additions Deletions Juiie 30, 1992 City: Compensated absences payable $ Claims payable Obligation under capital lease RDA Project Area No. 1: Tax allocation bonds Revenue bonds Due to County of Riverside Pass through agreements payable: Desert Sands Unified School District Coachella Valley Unified School District Notes payable - individuals Advances to other funds RDA Project Area No. 2: Notes payable - individuals Advances to other funds Total 248,598 - 87,005 161,593 - 21,955 - 21,955 43,125 -- 21,563 21,562 26,850,000 8,700,000 550,000 35,000,000 - 8,515,000 - 81515,000 6,007,041 2,212,462 - 8,219,503 3,514,140 - 259,260 3,254,880 14,756,492 - 353,699 14,402,793 1,332,870 - 446,985 885,885 1,044,274 7,778,435 6,150,707 2,672,002 2,050,630 - 730,015 1,320,615 1.628,068 1.866,427 3.494,495 * Advances to other funds are monies owed by the La Quinta Redevelopment Agency to the City of La Quinta, which also include accrued interest on advance. (.7) Obligation under Capital Lease The City purchased a fire truck under a capital lease agreement. Amount to be paid is $21,562 to be paid off within fiscal year ended 1993 plus accrued interest. -17- CITY OF LA QUINTA Notes to Financial Statements (Continued) (8) Tax Allocation Bonds La Quinta Project Tax Allocation Bond, Series 1989, were issued by the Agency in January 1, 1989, in the amount of $8,000,000. Proceeds are to be used for flood control improvements within Project Area No. 1. Interest rates range from 6.24% to 7.6% per annum, with interest payable semi-annually, on March 1 and September 1, beginning on March 1, 1989. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. 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, 1988, 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. Under terms of the bond, a maximum of $735,518, the maximum annual debt service amounts, is to be set aside in reserve funds. A total of $801,665 was set aside at June 30, 1992. The principal balance outstanding bonds at June 30, 1992 was $7,395,000. Serial tax allocation bonds, Series 1990, in the amount of $19,695,000, were issued by the Agency to finance the acquisition and improvement of the land within the La Quinta Redevelopment Project Area No. 1 and for other lawful redevelopment purposes. A portion of the proceeds were used to refund 1985 Tax Allocation Bonds. Interest is due on the bonds at rates ranging from 5.81% to 6.8% is payable on September 1, 1990 and semi-annually thereafter, on March 1 and September 1 of each year until maturity. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. Bonds maturing on September 1, 2005 and September 1, 2012 are subject to mandatory redemption on part from sinking account payments on September 1, 2001 and September 1, 2001, respectively, and each September 1, 2006 thereafter, through September 1, 2005 and September 1, 2012, respectively, at a premium price equal 100% of the principal amount plus accrued interest. 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, as a redemption price equal to the principal amount, plus accrued interest, plus a premium of 1/2% to 2%. The principal balance of outstanding bonds at June 30, 1992 is $18,905,000. La Quinta Redevelopment Project Tax Allocation Bonds, Series 1991, were issued by the Agency, October 1, 1991, in the amount of $8,700,000 for Project Area No. 1. Interest is payable semi-annually, on March 1 and September 1 of each year commencing March 1, 1992. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. Interest rate is 6.375% per annum. Bonds maturing on or after September 1, 2000, 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, 1999, at a redemption price equal to the principal amount, plus accrued interest, plus a premium of 1% to 2%. Term Bonds maturing on September 1, 2014, shall also be subject to mandatory sinking fund redemption, in whole or in part, on September 1, 2014, at a prepayment price equal to 100% of the principal amount plus accrued interest. Under the terms of the issue, the maximum annual debt service amount of $734,480 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 account. A total of $752,980 was set aside at June 30, 1992. The principal balance of outstanding bonds at June 30, 1992 was $8,700,000. -18- CITY OF LA QUINTA Notes to Financial Statements (Continued) (9) 1991 Local Agency Revenue Bonds. Series 1991 La Quinta Financing Authority Local Agency Revenue Bonds, Series 1991, were issued on December 1, 1991 by the Financing Authority in the amount of $8,515,000 to finance construction of the new Civic Center. Interest is payable semi—annually on October 1 and April 1 of each year commencing April 1, 1992. Interest range from 5.7% to 6.2% per annum. The bonds maturing on or before October 1, 2000 are not subject to optional redemption prior to maturity; however, bonds maturing on or after October 1, 2001 are subject to optional redemption, as a whole or in part, on any interest payment date on or after October 1, 2000, at a redemption price equal to the principal amount, plus accrued interest, plus a premium of .5% to 2%. Term bonds maturing on October 1, are subject to mandatory sinking fund redemption in part or in whole, on October 1, 2004 and on each October 1, thereafter, through October 1, 2018, at a prepayment equal to 100% of the principal amount plus accrued interest. Under the term of the issue, the amount $704,718, is to be set aside in a reserve. A total of $718,028 was set aside as of June 30, 1992. The principal balance of outstanding bonds at June 30, 1992 was $8,515,000. (10) Due to County of Riverside Based on an agreement dated November 30, 1983 between the Agency, the City of La Quinta and the County of Riverside (County), the Agency will pay to the County its fifty percent share of tax increment received by the Agency pursuant to the guidelines of the agreement. These payments are subordinate to certain debt service requirements of the Agency Project Area No. 1 and exclude amounts allocated to the low income housing fund. The payments 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 23, 1992 is $8,219,503 including $644,264 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, 1992. (11) 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 will identify all tax increment revenue associated with the District for Project Area No. 1. The 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 $4,132,000. Alternatively, such tax increment revenues plus interest accrued —19— CITY OF LA QUINTA Notes to Financial Statements (Continued) (11) Notes Payable to Desert Sands Unified School District (Continued) 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. Tax increment payments outstanding at June 30, 1992 totaled $3,254,880. (12) Notes Payable to Coachella Valu 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 associated with properties within the District confines. Such payments are subordinated to their indebtedness of the Agency incurred in futherance of the Redevelopment Plan for Project Area No. 1. This tax increment will then be paid to the district over the payment schedule from June 30, 1992 to August 1, 2012, in amounts ranging from $353,599 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding for the fiscal year ended June 30, 1992 totalled $14,402,793. 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. (13) Notes Payable to Individuals In the fiscal year ended June 30, 1991, the Agency purchased several parcels of land from individuals and as a result incurred $5,583,500 of outstanding debt. Interest on the notes ranges from 9% to 10.5% per annum and is payable monthly and quarterly. Principal payable outstanding on the notes at June 30, 1992 for Project Area No. 1 is $885,885 and $1,320,615 for Project Area No. 2. 14 A vances from the it of La Quintg The following represents a summary of the various transactions between the City of La Quinta and the Agency, accounted for as advances from the City: Agency expenditures incurred by the City: Project Area No. 1 Project Area No. 2 Total Balances at Balances at July 1. 1991 Proceeds Repayments June_ 30, 1992 $1,044,273 1Lfi . 7,778,435 16._6.429 9,614-86-4 6,150,707 2,672,001 3_,494,496 There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. W115 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) (15) Debt Service Requirements to Maturity Principal & Interest 15,109,183 38,223,587 16,533,866 18,325,790 3,254,880 14,402,793 2,768,946 21,562 108,640,607 Less: Interest (7,714,183) (19.318,587) (7.833.866) (9,810,790) - (562.446) - [45.239.872) Total Principal 7.395.000 18.405.000. 8.700.000 8.515.000 14.402.793 21 _63.400.735 -21- Pass-through Redevelopment Agency Financing Agreements P.A._#1 Notes Project Area No. 1 Authority Coachella Payable Tax Tax Tax Revenue Sands Valley to Year Allocation Allocation Allocation Bonds Unified Unified Individuals Capital Ending Series Series Series Series School School (P.A. Lease June 30 1989 1990 1991 1991 District District #1 and 2) Pavable Total 1992-93 $ 727,186 1,839,355 701,699 502,656 344,610 730,081 731,526 21,562 5,598,675 1993-94 726,263 1,841,535 728,175 548,353 434,050 776,353 565,488 - 5,620,217 1994-95 729,270 1,836,768 725,743 699,477 571,560 624,473 528,066 - 5,715,357 1995-96 726,225 1,839,850 722,675 696,403 628,000 474,517 490,644 - 5,578,314 1996-97 727,100 1,835,555 723,810 697,570 707,650 526,560 453,222 - 5,671,467 1997-98 726,690 1,833,155 723,988 697,987 569,010 580,683 - - 5,131,513 1998-99 724,695 1,832,913 723,210 697,623 - 621,976 - - 4,600,417 1999-00 721,895 1,829,532 721,475 696,407 - 649,927 - - 4,619,236 2000-01 722,260 1,827,948 723,625 694,413 - 670,817 - - 4,639,063 2001-02 720,400 1,828,158 724,500 696,467 - 684,233 - - 4,653,758 2002-03 721,200 1,825,171 719,259 697,398 - 697,918 - - 4,660,946 2003-04 720,000 1,823,639 722,744 692,327 - 711,877 - - 4,670,587 2004-05 716,800 1,823,227 719,794 690,766 - 726,114 - - 4,676,701 2005-06 716,400 1,818,764 720,409 692,479 - 740,636 - - 4,688,688 2006-07 718,400 1,811,210 719,431 692,861 - 755,449 - - 4,697,351 2007-08 712,800 1,808,810 716,860 691,914 - 770,558 - - 4,700,942 2008-09 714,000 1,803,640 717,535 689,636 - 785,968 - - 4,710,779 2009-10 712,800 1,800,070 716,297 690,863 - 801,688 - - 4,721,718 2010-11 708,000 1,792,470 713,080 690,426 - 817,722 - - 4,721,698 2011-12 709,600 1,789,999 712,720 688,328 - 834,076 - - 4,734,723 2012-13 707,199 1,781,818 714,959 684,566 - 421,167 - - 4,309,709 2013-14 - - 709,799 683,976 - - - - 1,393,775 2014-15 - - 712,079 686,225 - - - - 1,398,304 2015-16 - - - 681,313 - - - - 681,313 2016-17 - - - 684,072 - - - - 684,072 2017-18 - - 679,339 - - - - 679,339 2018-19 - - 681,945 - .� - - 681.945 Principal & Interest 15,109,183 38,223,587 16,533,866 18,325,790 3,254,880 14,402,793 2,768,946 21,562 108,640,607 Less: Interest (7,714,183) (19.318,587) (7.833.866) (9,810,790) - (562.446) - [45.239.872) Total Principal 7.395.000 18.405.000. 8.700.000 8.515.000 14.402.793 21 _63.400.735 -21- CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) (16) Debt 'Without Governmental „Commitment The City of La Quinta has entered into the sale of Improvement Bonds issued pursuant to the California State Improvement Act of 1911. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benifitted by the projects. The Bonds are not general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The City is in no way liable for repayment of the debt but is only acting as agent for the property owners in collecting the assessments, forwarding the collections to bondholders, and do not constitute an obligation of the City; they are not reflected in the general long—term debt account group in the accompanying financial statements. The following is a summary of improvement bonds outstanding at June 30, 1992: Proceeds Maturity Date Interest Rate Amount outstanding at June 30, 1992 Assessment Assessment Assessment Assessment District N0. --1 District Na. 89-2 District No. 90-1 DiStrict No; 91-11 $855,984 1,153,974 1,227,155 2,240,866 September 2, 2004 September 2, 2004 September 2, 2005 September 2, 2006 6.40%-7.25% 6.25%-6.75% 5.5%-7.0% 6.70%-6.80% 775,000 1,030,000 1,175,000 2,240,866 (17)_Reserves and Designation -of _Fund Equity The City established "reserves" of fund equity to segregate fund balances which are not appropriable for expenditure in future periods, or which are legally set aside for specific future use. Fund "designations" also may be established to indicate tentative plans for financial resource utilization in future periods. Fund balances at June 30, 1992 consisted of the following reserves and designations: General Total Special Debt Capital (Memorandum Reserved for: Fund Revenue _Service Projects Onlv)_ Debt service Advances to other funds $ - 6,1.66,446 - 6,590,656 - 6,590,656 - - - 6,166,446 Loans receivable 34,518 - - - 34,518 Deposits 26,615 - _ Subtotal 6„227,579 6,590,656 12.818,235 Unreserved: Designated for: Equipment replacement 76,323 - - - 76,323 Special projects - 6,879.881 - 22,524.983 29,404.864 Subtotal 76,323 6,879.881 22,524,983 29.4gI,187 Undesignated (662,573) - (662,573) Total fund equity $5,641,329 6,520,656 22.524.983 4i.,63.6.849 —22— CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) (18) Referred Compensation The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. As of June 30, 1992, the deferred compensation liability included in an Agency Fund was $201,176 carried at market value. All amounts of compensation deferred under the plans, all property and rights purchased with those amount, and all income attributable to those amounts, property, or rights, are solely the property and rights of the City, subject only to the claims of the City's general creditors. Because the City handles these funds in a fiduciary capacity, the Deferred Compensation Fund is reported as an Agency Fund in the accompanying financial statements. (1.9) City Employees Retirement flan (Defined Benefit Pension Plan) Plan Description The City of La Quinta contributed to the California Public Employees Retirement System (PERS), an agent multiple -employer defined pension plan that acts as a common investment and administrative agent for participating public entities within the State of California. The City's payroll for employees covered by PERS for the year ended June 30, 1992 was $1,962,100. The total payroll for the year was $2,099,582. All full-time City employees are eligible to participate in PERS. Part-time hourly employees do not participate in PERS. Benefits vest after five years of service. City employees who retire at or after age fifty, with five years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to the average monthly pay rate for the last twelve consecutive months. PERS also provides death and survivor's benefits. These benefit provisions and all other requirements are established by State statute and City ordinance. Employee and Employer Contribution Obligations Contributions required of City employees are paid by the City on behalf of the employees. The rates are set by statute and therefore remain unchanged from year to year. The present rates are: Member Rates as a Category Percentage of Wages Local miscellaneous members 7% The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial bases recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. -23- CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) (19) City Employees Retirement Plan (Defined Benefit Pemion Plan, -(Continued) Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step—rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of PERS on a going—concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to PERS. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1991. Neither an actuarial valuation nor an annual update as of June 30, 1992 is available at this time. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8.5 percent a year compounded annually, (b) projected salary increases of 5.50 percent a year compounded annually, attributable to inflation, (c) additional projected salary increases of 1.50 percent a year, attributable to seniority/merit, and (d) no post retirement benefit increases. The total overfunded pension obligation applicable to the City employees was $172,923 at June 30, 1991, as follows: Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current Employees: Accumulated employee contribution including allocated investment earnings Employee—financed vested Employee—financed non—vested Total pension benefit obligation Net assets available for benefits at cost (Market value is $1,139,779) Overfunded pension benefit obligation Change in the pension benefit obligation from last year resulted from the following: Changes in benefit provisions Changes in actuarial assumptions Total —24— $ 73,318 436,348 185,941 _152,404 855,011 L027,934 (172.923) +(37.2601 $ (37.260) CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) 19 City EmployeesR it m n Plan(Defined B n fit Pension Plan ontinued Actuarially Determined Contribution Requirements and Contribution Made PERS used the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost method in which the employer's total normal cost is expressed as a level percent of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the year 2000 for prior service benefits and current service benefits. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. The contribution to PERS for the year ended June 30, 1992 of $241,999 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1990. The contribution consisted of the following: Percent of Covered Amount Payroll Normal cost $280,674 14.31% Amortization of unfunded (overfunded) acturarial accrued liability 38 675 (1.97%) Total contribution 241.999 12.34% Contribution: Employer 101,596 5.18% Employee MAO 7.16% Total contribution 12.34% Trend Information For the three years ended June 30, 1990, 1991 and 1992, the total contribution to PERS was 14%, 13.2% and 12.34%, respectively, of the annual covered payroll. The total contribution paid by the City included the employer contributions as well as the member contribution for which the City is contractually obligated to pay on behalf of its employees. The total contributions paid by the City was based upon actuarially determined requirements. -25- CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) (19) City Employees Retirement Plan (Defined Benefit Pension Plan) (Continued) Since the required ten-year information for the City of La Quinta alone is not displayed in the California PERS annual report, this information must be disclosed in the financial statements of the City. This ten-year historical trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. However, the year ended June 30, 1987 is the first year that this actuarial information was made available by PERS. Moreover, such information for the year ended June 30, 1992 is not yet available. Until ten years of data are available, as many years as are available will be presented. Showing overfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation, thereby enhancing comparability for trend analysis purposes. Available trend information (in hundreds) is summarized as follows: (20) Lease _C!2mmitments/Claims Payable/Self Insurance The City is operating out of leased facilities. The lease is on a month to month basis. Lease payments are approximately $61,000 per year. Claims Payable Claims payable in the General Long-term Debt Account Group represent estimates of claims against the City of La Quinta. The estimated claims payable represents the claims administrators' best estimate of the amount to be paid on workers' compensation and general liability claims. Losses for claims incurred, but not reported, are also recorded if the probable amounts of loss can be reasonably estimated. Individual claims in excess of the self-insured amount for workers' compensation and general liability (up to a maximum of $5,000,000 per incident) fall under the insurance policies purchased by the City. -26- (6) (4) Unfunded Pension Actuarial (1) (2) (3) Unfunded (5) Benefit Obligation Valuation Net Assets Pension Percentage Pension Benefit Annual as a Percentage as of Available Benefit Funded Obligation Covered of Covered Payroll June 30 for Benefits Obligation (1)/(2) _ (2) - (11 Payroll (41/(5) _ 1987 $ 2,664.0 $ 1,886.9 140.1% $ -757.2 $ 7,172.1 -10.6% 1988 3,745.5 2,614.0 143.3 -1,131.5 7,862.4 -14.4 1989 5,467.8 4,266.4 128.2 -1,201.6 12,012.6 -10.0 1990 7,770.3 6,508.0 119.4 -1,262.3 14,873.3 -8.5 1991 10,279.3 8,550.1 120.2 -1,729.4 19,272.4 -9.0 (20) Lease _C!2mmitments/Claims Payable/Self Insurance The City is operating out of leased facilities. The lease is on a month to month basis. Lease payments are approximately $61,000 per year. Claims Payable Claims payable in the General Long-term Debt Account Group represent estimates of claims against the City of La Quinta. The estimated claims payable represents the claims administrators' best estimate of the amount to be paid on workers' compensation and general liability claims. Losses for claims incurred, but not reported, are also recorded if the probable amounts of loss can be reasonably estimated. Individual claims in excess of the self-insured amount for workers' compensation and general liability (up to a maximum of $5,000,000 per incident) fall under the insurance policies purchased by the City. -26- CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements (Continued) (20) Lease Commitments/Claims Payable/Self--Insurance. (Continued) Insgrance Pooling The Coachella Valley Joint Powers Insurance Authority (CVJPIA) was formed under a joint exercise of powers agreement between local governments and special districts under the sponsorship of the Coachella Valley Association of Governments for the purpose of jointly funding insurance programs. The CVJPIA is composed of twenty-one cities and one transit agency with equal governing powers and no management authority. The City of La Quinta joined the CVJPIA in order to achieve long term premium stability. Each member city must remain in the pool for three years and may be assessed up to three times their annual premium if the need arises. The likelihood of the need for excess premiums is remote given the claims history of the cities involved and the length of time necessary to settle large claims. The CVJPIA provides for liability insurance coverage in excess of $125,000 with a maximum of $5,000,000 per claim. The following represents summary financial information from the latest audit report released for the CVJPIA (year ended June 30, 1992): Total assets $18,335,376 Total liabilities 14,489,401 Fund equity $3,845,975 Total revenues $ 4,723,559 Total expenses 5,241,633 Net income (loss) (518,074) Retained earnings - beginning of year, as restated 4,364,049 Retained earnings - end of year $3,845.975 The claims payable for the CVJPIA at June 30, 1991 amounted to $9,007,039. Of the ending retained earnings balance, $68,440 pertain to the City of La Quinta. (21) Accumulated Fund Deficit The Capital Project "Assessment District 92-1" fund reported a deficit fund balance of $13,513 at June 30, 1992. -27- CITY OF LA QUINTA Notes to Financial Statements (Continued) (22) Expenditures_ in Excess of Appropriation Expenditures did not exceed appropriations in any fund for the year ended June 30, 1992, except in the debt service fund, because for financial statement purposes, repayment of advances from the general fund are recorded as an expenditure but are not included in the budget for budgetary purposes. (23) Due From -and To Othetr Fynds Current interfund receivables and payables balances at June 30, 1992 are as follows: Current Current Interfund Interfund Receivables Payables General Fund $118,074 - Capital Project Funds: Finance Authority - 118,074 118.0. 4 (24) Contingencies Prior to December 11, 1991, the City of La Quinta used an investment advisor who served as broker/dealer for a significant portion of the City's investment portfolio. On December 11, 1991, approximately $10,750,000 of these investments were withdrawn and deposited into other accounts of the City, leaving a balance with the advisor of approximately $3,000,000. On that same date, the Securities and Exchange Commission froze all cash and investments under the control of the advisor because of alleged misappropriation by the advisor of client funds. The accompanying financial statements reflect a loss recognized for the write-off of the funds held by the advisor on December 11, 1991 in the amount of $3,089,760 ($3,082,188 charged to governmental funds and $7,572 charged to fiduciary funds). On February 5, 1992, the receiver for another government agency that had used the services of the advisor filed a civil action against the City of La Quinta alleging that approximately $5,400,000 of the funds withdrawn by the City on December 11, 1991 were actually funds of the other government agency. The claimant has further indicated that the amount of its claim may be increased. Other claims may be filed by other defrauded clients of the advisor. The City has filed a petition with the Riverside County Superior Court seeking a declaration that the amounts withdrawn were actually funds of the City. Trial is currently set to commence in March of 1993. The laws and facts associated with this case are very complex and are under investigation. The ultimate outcome of this lawsuit cannot presently be determined. Therefore, no estimate as to any additional losses that may result have been reflected in the accompanying financial statements. -28- SPECIAL REVENUE FUNDS -29- (This page intentionally left blank) —30— EXHIBIT A-1 CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 1992 Assessment Community Low Income Low Income State Landscape District Village Service Housing- Housing - Gas Tax Maintenance 89-1 _ Ouiqby Parkin Projects PA #1 PA #2 Totals Assets Cash and investments $166,013 100,594 156,284 652,775 15,867 1,248,031 4,087,476 496,700 6,923,740 Due from other governments 36&Z 21,081 - - - 57.906 Total assets 1iL521 l.i fiaLM1.248.031 .087.476 Liabilities and Fund Balances Liabilities: Accounts payable $ 17,483 - 33,104 4,183 - - - - 54,770 Accrued expenses 5,102 - 7,053 - - - - - 12,155 Deposits payable - - 34,840 - - 34.840 Total liabilities 22,585 - 74,997 4,183 - 101,765 Fund balances: Unreserved: Designated for special projects 180,253 100,594 IQ2,. �6$ 64$.592 15,867 1,248,031 4,087.476 496.70 6.M9,881 Total fund balances 180,253 100,594 102,368 648,592 15.867 1,248,031 4,087,476 496.70 879 8 1 Total liabilities and fund balance202g3g 17_Z�3l:a4 5 Z7 1$5 1.248.031 .087.476 4QQ ¢�Q —31— CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 1992 Expenditures: General government Planning and development - - - Public works 394,196 - 494,001 - Capital projects 315,482 10,241 6,271 Total expenditures 709,678 504,242 6,271 Excess (deficiency) of revenues and other sources over expenditures and other uses (434,705) 8,669 41,473 100,536 Other financing sources (uses): State Landscape Assessment Gas Tax Maintenance District 89-1 Quimby Revenues: Loss on investments (153,414) _ - - (158,154) Taxes $ sources (uses) (153,414) - Developer fees - - _ 37,939 Intergovernmental 223,228 - - - Interest 49,249 8,669 5,855 68,868 Miscellaneous 2,496 - 3,396 _ Special assessments - - 536,464 Total revenues 274,973 8,669 545.715 106,807 Expenditures: General government Planning and development - - - Public works 394,196 - 494,001 - Capital projects 315,482 10,241 6,271 Total expenditures 709,678 504,242 6,271 Excess (deficiency) of revenues and other sources over expenditures and other uses (434,705) 8,669 41,473 100,536 Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Loss on investments (153,414) _ - - (158,154) Total other financing sources (uses) (153,414) - - (158,154) Excess (deficiency) of revenues over expenditures and other sources (uses) (588,119) 8,669 41,473 (57,618) Fund balances at beginning of year 768,372 91,925 60,895 706,210 Residual equity transfer _ - - _ _ _ Fund balances at end of year i.Q _2 100.5. 4 4 2 -32- 536.464 4,557 72.859 1.691,312 294,808 2,999,700 -- 3,904 3,904 - 552,620 - 552,620 - - - - 888,197 443.198 - 775.192 995.818 3,904 2.219.913 4,557 72,859 695,494 290,904 779.787 - - 189,245 14,061 203,306 - 820,826 3,904 824,730 - - - (311.568) 1,010,071. 17.965 716,468 4,557 72,859 11,310 - - 1.175.172 1.248.031 1,705,565 2,381,911 !t,UO-L,M-LQ -33- 308,869 187,831 1,496,255 4,208,454 1,-1-75,172 6.879.x81 EXHIBIT A-2 Community Village Service Low Income Low Income Parking Projects housing= PA #1 Housing - PA #2 Total - 1,614,171 289,214 1,903,385 3,375 - - - 41,314 - - - - 223,228 1,182 72,859 69,145 5,594 281,421 -- - 7,996 - 13,888 536.464 4,557 72.859 1.691,312 294,808 2,999,700 -- 3,904 3,904 - 552,620 - 552,620 - - - - 888,197 443.198 - 775.192 995.818 3,904 2.219.913 4,557 72,859 695,494 290,904 779.787 - - 189,245 14,061 203,306 - 820,826 3,904 824,730 - - - (311.568) 1,010,071. 17.965 716,468 4,557 72,859 11,310 - - 1.175.172 1.248.031 1,705,565 2,381,911 !t,UO-L,M-LQ -33- 308,869 187,831 1,496,255 4,208,454 1,-1-75,172 6.879.x81 EXHIBIT A-2 CITY OF LA QUINTA Special Revenue Funds State Gas Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Planning and development Public works Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds from advances from city Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year -34- EXHIBIT A-3 Variable Favorable Beset Actual Unfavorable) 199,000 223,228 24,228 63,000 49,249 (13,751) - 2,496 2,496 262,000 274,973 12.973 441,406 394,196 47,210 465.000 315,482 1.49,518 906,406 70_.9678 196.728 (644,406) (434,705) 209,701 (153,414) (153.414) - (153,414) (153.414) (644,406) (588,119) 56,287 768.372 768.372 123.96656,287 EXHIBIT A-4 CITY OF LA QUINTA Special Revenue Funds Landscape Maintenance Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Variable Favorable Budget Actual (Unfavorable) Revenues: Taxes Developer fees - - - Intergovernmental - - - Interest 8,669 8,669 Miscellaneous - - - Special assessments - - Total revenues - 8,669 8,669 Expenditures: General government - - - Planning and development - - - Public works - - - Capital projects - - Total expenditures - - Excess (deficiency) of revenues over (under) expenditures - 8,669 8,669 Other financing sources (uses): Operating transfers in - - - Operating transfers out - - - Proceeds of advances from City - - - Loss on investments Total other financing sources (uses) - - - Excess (deficiency) of revenues and other sources over expenditures and other (uses) -- 8,669 8,669 Fund balances at beginning of year 91,925 91,925 Fund balances at end of year 91.925 LI -35- EXHIBIT A-5 CITY OF LA QUINTA Special Revenue Funds Assessment District 89-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Variable Favorable Btidvet Actual (Unfavorable) Revenues: Taxes $ - - Developer fees 95,000 - (95,000) Intergovernmental - - - Interest - 5,855 5,855 Miscellaneous - 3,396 3,396 Special assessments 565.242 .3 6,464 f28,778) Total revenues 660,242 545,715 (114,527) Expenditures: General government - - _ Planning and development - - _ Public works 600,035 494,001 106,034 Capital projects 180,000 10,241 169.759 Total expenditures -UO,035 504.242 275,793 Excess (deficiency) of revenues over expenditures (119,793) 41,473 161,266 Other financing sources (uses) Operating transfers in - - - Operating transfers out Proceeds of advances from City Loss on investments Total other financing sources (uses) - - - Excess (deficiency) of revenues and other sources over expenditures and other (uses) (119,793) 41,473 161,266 Fund balances at beginning of year 60.895 60,895 - Fund balances at end of year -36- CITY OF LA QUINTA Special Revenue Funds Quimby Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Planning and development Public works Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year -37- Budget_ Actual 50,000 37,939 68,868 EXHIBIT A-6 Variable Favorable Unfavorable (12,061) 68,868 50,000 106 :r :r 25.000 6,271 (158,154) 18.729 - (158,154) 25,000 6.271 18,729 25,000 100,536 75,536 (158.154) (158,154) - (158,154) (158.154) 25,000 706.210 (57,618) 706,210 46 8.592 (82,618) EXHIBIT A-7 CITY OF LA QUINTA Special Revenue Funds Village Parking Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Variable Favorable Budget Actual (Unfavorable), Revenues: Taxes $ - - Developer fees 9,375 3,375 (6,000) Intergovernmental - _.. - Interest - 1,182 1,182 Miscellaneous - - - Special assessments - - Total revenues 9,375 4.557 (4,814) Expenditures: General government - - - Planning and development - - - Public works - - - Capital projects Total expenditures Excess (deficiency) of revenues over expenditures 9,375 4,557 (4,818) Other financing sources (uses) Operating transfers in Operating transfers out - - Proceeds of advances from City - Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other (uses) 9,375 4,557 (4,818) Fund balances at beginning of year 11,310 11,310 Fund balances at end of year 20.685 15.567 () -38- CITY OF LA QUINTA Special Revenue Funds Community Service Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Planning and development Public works Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other (uses) Fund balances at beginning of year Residual equity transfer Fund balances at end of year -39- EXHIBIT A-8 Variable Favorable Budget Actual (Unfavorable) - 72,859 72,859 72,859 72,859 - 72,859 _ 72,859 72,859 72,859 1.175 172 1,175,172 1,175,172 1.248.031 59 CITY OF LA QUINTA Special Revenue Funds Low Income Housing Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Planning and development Public works Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated Fund balances at end of year -40- EXHIBIT A-9 1,010,071 L010,071 (147,032) 1,705,565 1,852,597 2.381.911 2,381.911 $2.23879 4.087.476 Variable Favorable Budget Actual (Unfavorable) $1,328,909 1,614,171 285,262 140,000 69,145 (70,855) - 7,996 7,996 1.468.909 1,691.312 222,403 1,015,941 552,620 463,321 600.000 443,198 _156,802 1,615.941 995,818 620,123 (147.032) 695.494 842,526 - 189,245 189,245 - 820,826 820,826 1,010,071 L010,071 (147,032) 1,705,565 1,852,597 2.381.911 2,381.911 $2.23879 4.087.476 CITY OF LA QUINTA Special Revenue Funds Low Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Planning and development Public works Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated Fund balances at end of year -41- EXHIBIT A-10 - 14,061 14,061 3,904 3,904 - 17,965 17.965 248,892 308,869 59,977 187,831 1$7.831 - 436.723 Variable Favorable Budget Actual Unfavorable $276,492 289,214 12,722 10,200 5,594 (4,606) 286,692 294,808 8,116 37,800 3,904 33,896 37,800 3,904 33,896 248,892 290,904 42,012 - 14,061 14,061 3,904 3,904 - 17,965 17.965 248,892 308,869 59,977 187,831 1$7.831 - 436.723 (This page intentionally left blank) -42- DEBT SERVICE FUNDS -43- EXHIBIT B-1 CITY OF LA QUINTA Debt Service Funds Combining Balance Sheet June 30, 1992 Redevelopment Redevelopment Financing Agency -PA #1 Agency -FA #2 Authority Totals Assets Cash and investments $1,657,809 1,728,144 - 3,385,953 Cash with fiscal agent 1,554,708 - 1,565,959 3,120,667 Interest receivable - - - - Due from other governments 232,953 71,034 - _ 303,987 Total assets 3.445.470 1.7.99._173 1 5.959 ¢ Liabilities and Fund Balance Liabilities: Obligations under pass through agreements S 104,620 115,331 219,951 Total liabilities 104,620 115,331 219,951 Fund balances: Reserved for debt service 3.340,850 1,6f33,847 1,565.959 6,590,656 Total fund balances 3,340,850 1,683,847 1,565,959 6,590,656 Total liabilities and fund balances $3.445,470 .178 1.565.959 G $14.6d? -44- EXHIBIT B-2 CITY OF LA QUINTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1992 Redevelopment Redevelopment Financing Agency -PA #1 Agency -PA #2 Authority Totals Revenues: 768,420 56,244 1,748,743 2,573,407 Operating transfers out Taxes $8,830,070 1,156,854 Proceeds of advances from City 9,986,924 Interest 364.960 55,961 420.921 Total revenues 9.195,030 1.212,815 1,748,743 2.822.313 10,407545 Expenditures: revenues over expenditures Debt service: 37,141 1,041,156 1,565,959 2,644,256 Fund balances at beginning of year Principal 550,000 - - 550,000 Interest 2,248,448 - 182,784 2,431,232 Payment of advances 6,150,707 - - 6,150,707 Interest accrued on advance 181,652 324,044 - 505,696 Payments under pass through agreements 717,604 230.663 24 267 Total expenditures 9.848.411 554,707 182.784 1 .585.902 Excess (deficiency) of revenues over expenditures (653,381) 658,10$ (182,734) (178.057) Other financing sources (uses): Operating transfers in 768,420 56,244 1,748,743 2,573,407 Operating transfers out (259,550) - - (259,550) Proceeds of advances from City 181.652 326,804 - 508,456 Total other financing sources (uses) 690.522 383,048 1,748,743 2.822.313 Excess (deficiency) of revenues over expenditures and other sources (uses) 37,141 1,041,156 1,565,959 2,644,256 Fund balances at beginning of year 3,303,709 642_,691 - 1,246,400 Fund balances at end of year -45- CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Interest Total revenues Expenditures: Debt Service: Principal Interest Payment of advances Interest accrued on advance Payment of pass-through agreements Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated Fund balances at end of year —46— EXHIBIT B-3 Variable Favorable Budget Actual (Unfavorable) $7,705,598 8,830,070 1,124,472 610,400 _ 364,960 (245.440) 8.315,998 9,195.030 879,032 708,353 550,000 158,353 2,613,827 2,248,448 365,379 250,000 6,150,707 (5,900,707) 181,652 (181,652) 834,702 _717.604 117.098 44 4882 9.848,411 (i441.52�) 3 909.116 1653,381) (4.562,497) - 768,420 768,420 - (259,550) (259,550) _181,652 181.652 690,522 _ 690,522 3,909,116 37,141 (3,871,975) _3,303,709 3,303,709 .2 3,340, -$54 (� ) EXHIBIT B-4 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Variable Favorable Budget Actual (Unfavorable) Revenues: Taxes $1,105,969 1,156,854 50,885 Interest 40.800 55,961 15,161 Total revenues 1,146,769 1,212,815 66,046 Expenditures: Debt Service: Principal - - - Interest - - - Payment of advances 181,000 - 181,000 Interest accrued on advance - 324,044 (324,044) Payment of pass-through agreements 546.455 230,663 315,792 Total expenditures 727,455, 554,707 172,748 Excess (deficiency) of revenues over expenditures 419,314 __658,108 238.794 Other financing sources (uses) Operating transfers in - 56,244 56,244 Operating transfers out - - - Proceeds of advances from City 326,804 326,804 Total other financing sources (uses) - 383,048 383,048 Excess (deficiency) of revenues and other sources over expenditures and other uses 419,314 1,041,156 621,842 Fund balances at beginning of year, as restated 642,691642.691 - Fund balances at end of year $1 6U 2,005 1,683,847 -47- CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Taxes Interest Total revenues Expenditures: Debt Service: Principal Interest Payment of advances Interest accrued on advance Payment of pass-through agreements Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Transfer out to agency Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as restated Fund balances at end of year -48- EXHIBiIT B-5 Variable Favorable Bu. diet Actual Unfavorable 182,784 (182,784) 182.784 (182,784) (182,784) (182,784) 1,748,743 1,748,743 - 1,745,743 1,748,743 - 1,565,959 1,565,959 .565.959 .565.959 CAPITAL PROJECTS FUNDS -49- CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 1992 Assets Cash and investments Cash with fiscal agent Accounts receivable Due from other governments Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued expenses Deposits payable Retention payable Due to other funds Total liabilities Fund balances: Unreserved: Designated for special projects Total fund balances Total liabilities and fund balance Assessment Assessment Assessment District 88-1 District 89-2 District 90-1 $83,421 97,896 237,037 83.421 97,896 237.037 83.421 97.896 237.037 -50- EXHIBIT C-1 Assessment Assessment Infra- Financing Redevelopment Redevelopment District 91-1 District_ 92-1 structure Authority Agency---PA#1 Agency-PA#2 Total 1,300,488 - 5,087,511 - 12,751,919 80,182 19,638,454 - - - 4,352,226 - - 4,352,226 - - 1,299 - 1,299 - 2,190 - 384,353 - 386.543 11 : ' -�f :I�1�E:I►�L cfi :�a 354,568 13,513 520,295 - - - 888,376 - 217 - - - 217 - - 77,100 - - - 77,100 539,963 - 209,111 - 20,698 - 769,772 - 118,074 118,074 894,531 13,513 806,723 118,074 20.698 _1,853,539 405,957 (13,513) 4,282,978 4,234,152 13,116,873 80,182 22524 405,957 (13,513) 4,282,978 4,234,152 13,116,873 80,182 22.524,983 4.352.226 -51- CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1992 Assessment Assessment Assessment District 88-1 District 89-2 District 90-1 Revenues: Charges for services Developer fees - - - Interest 7,218 9,112 23,468 Miscellaneous - - Special assessments - - Total revenues 7.218 9.112 23.468 Expenditures: General government - - - Capital projects 287 328 103.515 Total expenditures 287 328 103.515 Excess (deficiency) of revenues over expendituress 6.931 8.784 (80,047) Other financing sources (uses): Operating transfers in Operating transfers out -- - _ Transfer to agency fund - (68,044) (75,940) Proceeds of bonds Proceeds of advances from city Loss on investments (19,727) Total other financing sources - (87,771) (75,940) Excess (deficiency) of revenues over expenditures and other sources (uses) 6,931 (78,987) (155,987) Fund balances at beginning of year 76,490 176,883 393.024 Fund balances at end of year -52- EXHIBIT C-2 Assessment Assessment Infra- Financing Redevelopment Redevelopment District 91-1 District 92-1 structure Authority Agency-PA#1 ARency-PA#2 Total 15 - - - - -- 15 - - 650,964 - - -y 650,964 137,452 - 479,507 137,694 312,717 2,610 1,109,778 - - 1,353 - 110,000 - 111,353 233,918 - - _ 233,918 371,385, - 1.131,824 137,694 422,717 2.610 2,106,028 - - - - 464,008 259,961 723,969 1,980,272 13,513 3,041,597 - 5,_241,815 1,205,986 11,587,313 1-980,272 13.513 3,, 0411, 597 - 5,705,823 1,466,947 12,311,282 (1,608,887) (13,513) (1,902-,773) 137,694 (5,283.106) (1,463,337) (10-,,.-205,254) 2,352,651 - - - 2,352,651 - (4,101,394) (768,420) - (4,869,814) - (143,984) 2,016,779 - - 8,197,852 8,408,935 - 18,623,566 - - - - 6,775,957 1,535,719 8,311,676 (162,461) (1,240,296) 2.016,779 1,294,543 4,096,458 14,254,011 1,535,719 23,0 3,799 407,892 (13,513) (615,230) 4,234,152 8,970,905 72,382 12,828,545 (1,935) - 4.898.208 - 4,145,968 _ 7,800 9,696.438 405.957 J 3 $ ) 4.28 .978.234.152 13.116.873 �Q 1$2 22.524.983 -53- CITY OF LA QUINTA Capital Project Funds Assessment District 88-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Transfers out to agency Proceeds of bonds Loss on investment Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year -54- EXHIBIT C-3 Variable Favorable Budget; Actual (Unfavorable] 7,218 7,218 7.218 7.218 287 287) 287 287) 6.931 6.931 6.931 6.931 - 6,931 6,931 76.490 76,490 CITY OF LA QUINTA Capital Project Funds Assessment District 89-2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Transfers out to agency Proceeds of bonds Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year -55- EXHIBIT C-4 Variable Favorable Budget Actual (Unfavorable) 9,112 9,112 9,112 9,112 - 328 328) 328 328) 8,784 8,784 (68,044) (68,044) (19,727) (19,727) -(87,771) (87,771) 176,883 (78,987) 176,883 (78,987) CITY OF LA QUINTA Capital Project Funds Assessment District 90-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Transfers out to agency Proceeds of bonds Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year -56- EXHIBIT C-5 Variable Favorable Budget ActualUnfavorable - 23,468 23,468 23.468 23.468 - 103.515 047) (103.515) (75,940) - 103.515 (75,940) (103.515) (1SS,987) 0 04 047) - (75,940) (75,940) (75,940) (75,940) - (155,987) (1SS,987) 393.024 393.024 (1 987) CITY OF LA QUINTA Capital Project Funds Assessment District 91-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfer out to agency Proceeds of bonds Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year -57- EXHIBIT C-6 Variable Favorable Buffet Actual (Unfavorable) $ - 15 15 - 137,452 137,452 233,918 233,918 371,385 371.385 1,980,272 (1 80 272) 1,980,272 (1,980,272) (1.608.887) (1�) 2,016,779 2,016,779 2,016,779 2.016.779 407,892 407,892 (1,935) (1,935) - ------ 405-3-5.7 _ 447$9.2 CITY OF LA QUINTA Capital Project Funds Assessment District 92-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers out Transfers out to agency Proceeds of bonds Proceeds of advances from city Loss on investment Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year -58- EXHIBIT C-7 Variable Favorable Budget Actual (Unfavorable) - 13.513 (13.513) 13.513 (13.513) (13.513) (13.513) CITY OF LA QUINTA Capital Project Funds Infrastructure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfers out to agency Proceeds of bonds Proceeds of advances from city Loss on investment EXHIBIT C-8 Variable Favorable Budget Actual (Unfavorable) 660,000 420,000 650,964 479,507 1,353 1,080,000 1,131,824 1824 (9,036) 59,507 1,353 51,824 11,570,700 3,041,597 8.S29,103 11,570,700 3_,041,597 8,529,103 10 490 0 ) (1,909,773) 8,580,927 2,352,651 2,352,651 - (1,058.108) (�,Oss los> Total other financing sources (uses) - 1,294,543 1,294,543 Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year —59— (10,490,700) (615,230) 9,875,470 42898,208 4,898,208 i[5 59?..4 9 2 }4.2$2 9 5 CITY OF LA QUINTA Capital Project Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Public works Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfer out to agency Proceeds of bonds Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year .E EXHIBIT C-9 Variable Favorable BudgetActual Unfavorable 137,694 137,694 - 137.694 _ 137,694 - 137.694 137,694 - (4,101,394) (4,101,394) 8,197,852 8,197,852 - 8,197,8S2 4,096,4S8 (4.101 394) 8,197,852 4,234,152 (3,963,700) $8.197.852 .234.152 (3,963-700) CITY OF LA QUINTA Capital Project Funds Redevelopment Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfer out to agency Proceeds of bonds Proceeds of advances from City Loss on investments Budget 186,667 EXHIBIT C-10 Variable Favorable Actual (Unfavorable) 312,717 110,000 126,050 110,000 186.667 422,717 236.050 408,935 6,775,957 6,775,957 (162.461) 1,089,579 464,008 625,571 7,569,140 5.241.815 2,327.325 8,658,719 5705,823 2,952,896 (8,472,052) (5.283,106) 3,188.946 8,000,000 Total other financing sources (uses) 8,000,000 Excess (deficiency) of revenues and other sources over expenditures and other (uses) Fund balances at beginning of year Fund balances at end of year -61- (768,420) (768,420) 8,408,935 408,935 6,775,957 6,775,957 (162.461) (162,461) 14,254_011 6,254,011. (472,052) 8,970,905 9,442,957 4,145,968 4..145,968 - ,-6-7-3.,,91 b3.1�. 442.957 CITY OF LA QUINTA Capital Project Funds Redevelopment Area Project No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1992 Revenues: Charges for services Developer fees Interest Miscellaneous Special assessments Total revenues Expenditures: General government Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfer out to agency Proceeds of bonds Proceeds of advances from City Loss on investments Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other (uses) Fund balances at beginning of year, as restated Fund balances at end of year -62- EXHIBIT C-11 Variable Favorable Budget Actual [unfavorable) 2,610 2,610 - 2,610 2.610 256,922 1,514,772 1,771,694 259,961 1,205,,9-66 1 465,947 (1,771,694) (1,463,337) 1,020,136 1,535,719 (3,039) 308.786 305,747 308,357 515,583 _1,020,136 1,535,719 515,583 (751,558) 72,382 823,940 7,800 7.800 1743.758) ---84 AGENCY FUNDS -63- EXHIBIT D-1 CITY OF LA QUIWA Combining Balance Sheet - All Agency Funds June 30, 1992 Arts in Employee's Assessment Assessment Assessment Assessment Public Deferred District District District District Places Compensation No. 88-1 No. 89-2 No. 90-1 No. 91-1 Total Assets Cash and investments $152,967 201,176 245,620 249,313 261,162 400,947 1,511,185 Due from other governments - - 5.912 8,698 5.101 12.897 32.608 Total assets 5152.967 201.17 ZILM MUM4,$4 1 3.793 Liabilities Due to bondholders $ - - 251,532 258,011 266,263 413,844 1,189,650 Deposits payable 152,967 - - - - - 152,967 Deferred compensation payable - 201.176 - - _ 201.176 Total liabilities 5152.967 201.17G 51.532 1,5437 -64- ARTS IN PUBLIC PLACES Assets Cash and investments Liabilities Deposits payable EMPLOYEE'S DEFERRED COMI'ENSATI N Assets Cash and investments Liabilities Deferred compensation payable ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders EXHIBIT D-2 CITY OF LA QUINTA All Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 1992 Balance at Balance at JAj1y 1, 1991 Additions Deletions June 30, 1992 $201,038 107,485 62,903 - 5.912 245,620 5.912 $159,573 209,510 119,770 249,313 $,698 8,498 159.573 25 —20-M 1 !11 -65- ASSESSMENT DISTRICT NO. 90-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders 4SSESSMENT DISTRICT N0. 91--1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders TOTALS -ALL AGENCY FUNDS Assets Cash and investments Due from other governments Total assets Liabilities Deferred compensation Deposits payable Due to bondholders Total liabilities EXHIBIT D-2 (Continued) CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Year ended June 30, 1992 Balance at Balance at July 1, 1991 Additions Deletions .curie 30. 1992 $155,989 226,007 120,834 - 5.101 - 155.989 231.108 120.834 261,162 5.101 266.263 231.108 266.263 $ - 495,615 94,668 400,947 - 12,897 12.897 508.512 94.668 4�1�.44 508.512 � 413.844 $742,931 1,167,307 399,053 1,511,185 32.608 32.608 742.93 1.199.915 Z$ 1.543.793 $139,790 61,386 - 201,176 86,541 67,304 878 152,967 516,600 1 071,225 398,175 1.189.650 4 Q x,199.915 1.543.793 -66-