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1992/93 General Purpose Financial Statement & Supplemental DataCITY OF LA QUINTA La Quinta, California General Purpose Financial Statements and Supplemental Data Year ended June 30, 1993 (With Independent Auditors' Report Thereon) (This page intentionally left blank) CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1993 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 5 • 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- Cash and Investments 13 Note 3- Property Taxes 16 Note 4- Fixed Assets 16 Note 5- General Long -Term Debt 17 Note 6- Tax Allocation Bonds 17 Note 7- 1991 Local Agency Revenue Bonds, Series 1991 19 Note 8- Due to County of Riverside 19 Note 9- Notes Payable to Desert Sands Unified School District 19 Note 10 - Notes Payable to Coachella Valley Unified School District 20 Note 11 - Notes Payable to Individuals 20 Note 12- Advances from the City of La Quinta 20 Note 13- Debt Service Requirements to Maturity 21 Note 14 - Debt Without Governmental Commitment 22 Note 15- Reserves and Designation of Fund Equity 22 Note 16- Deferred Compensation 23 Note 17 - City Employee Retirement Plan (Defined Benefit Pension Plan) 23 Note 18- Claims Payable/Self-Insurance 26 Note 19- Accumulated Fund Deficit 27 Note 20 - Expenditures in Excess of Appropriations 28 Note 21 - Due From and To Other Funds 28 Note 22 - Commitments Under Development Agreements 29 Note 23 - Contingencies 29 CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1993 TABLE OF CONTENTS Supplemental Data: Special Revenue Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances • State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Community Service Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Landscape Maintenance Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Assessment District 89-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Quimby Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Village Parking Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • South Coast Air Quality Fund: Statement of Revenues, Expenditures and Changes in Fund Balances Exhibit Pace A-1 32 A-2 34 A-3 36 A-4 37 A-5 38 A-6 39 A-7 40 A-8 41 A-9 42 CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1993 TABLE OF CONTENTS • Low Income Housing Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Low Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances ■ 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 • Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances 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 Exhibit Pace A-10 43 A-11 44 B-1 46 B-2 47 B-3 48 B-4 49 B-5 50 C-1 52 C-2 54 C-3 56 CITY OF LA QUINTA General Purpose Financial Statements and Supplemental Data Year Ended June 30, 1993 TABLE OF CONTENTS • Assessment District 89-2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances • Assessment District 90-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances • Assessment District 91-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances • Assessment District 92-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances • Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances • Infrastructure 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 Paee C-4 57 C-5 58 C-6 59 C-7 60 C-8 61 C-9 62 C-10 63 C-11 64 D-1 66 D-2 67 (This page intentionally left blank) (This page intentionally left blank) CIATES A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS The Honorable Mayor and City Council City of La Quinta La Quinta, California CERTIFIED PUBLIC ACCOUNTANTS 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92714 (714) 474-2020 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, 1993, 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, 1993, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements 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. Gl7mueJ 4145;061,Iz o September 8, 1993 —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, 1993 Assets and other debit Cash and investments (note 2) Cash with fiscal agent (note 2) Accounts receivable Notes receivable Loans receivable Due from other funds (note 21) Due from other governments Advances to other funds (note 12) Deposits Property, plant and equipment (note 4) Amounts available in debt service funds Amount to be provided for general long-term debt Total assets and other debits Liabilities and Fund F Liabilities: Accounts payable Accrued expenses Compensated absences payable Deposits payable Claims and settlements payable (notes 18 and 23) Contracts payable Deferred compensation payable (note 16) Deferred revenue Retentions payable Due to other funds (note 21) Due to bondholders Advances from other funds (note 12) Obligations under pass through agreements (notes 8, 9 and 10) Tax allocation bonds (note 6) Revenue bonds (note 7) Notes payable (note 11) Total liabilities Fund equity: Investment in general fixed assets Fund balances (note 15) Reserved: Debt service Advances to other funds Loans receivable Deposits Notes receivable 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 Proiects $1,126,115 6,902,750 1,846,144 7,807,589 - - 2,950,720 5,075,978 281,189 74,248 - 3,973 - 127,520 - - 22,199 - - - 77,501 - - 1,928,918 126,761 54,320 57,059 601,409 5,291,736 - - - 58,639 - 2,159,815 - - 4.853.923 15.417.867 $ 853,871 35,049 - 466,789 83,233 13,703 - 1,021 78,354 34,840 - 77,100 5,750 - - - - - -- 1,067,934 - 7,137 1,337,422 661,860 - - 291,177 - 1,021,208 90,729 1,628,599 2,274,704 - - 3,225,324 - 5,291,737 - - - 22,199 - - - 58,639 - - - - 127,520 - - - 6,940,589 - 13,143,163 82,056 - - - 508,301 - - 5,962.232 7.068,109 3.225.324 13,143,163 5.962.932 7.068.1-}9 3.225.324 13.143.163 7.158.838 4.853.923 15.417.867 See accompanying notes to financial statements, -2- EXHIBIT AA Fiduciary Account Groups Totals Fund Tvves General General (Memorandim Only) Agency Fixed As5�� 14n& -Term Debt 1993 1992 1,556,033 - - 19,238,631 31,967,503 - - - 8,026,698 7,472,893 - - - 359,410 123,117 - - - 127,520 - - - - 22,199 34,518 - - - 2,006,419 118,074 37,349 - - 876,898 846,746 - - - 5,291,736 6.166,446 - - - 58,639 26,615 - 19,286,535 - 19,286,535 12,462,249 - - 3,225.324 3,225,324 10,824,808 - x.593.382 19.286.535 76.132.814 79.358.138 76.132.814 134.652.823 67-145-475 137.188.444 1,355,709 2,236,249 - - - 97,957 37,592 - - 256,035 256.035 161,593 159,117 - - 349,411 346,599 - - 2,114,856 2,114,856 21,955 - - - - 21,562 242,487 - - 242,487 201,176 - - - 5,750 - - - - 1,067,934 769,772 - - - 2,006,419 118,074 1,191.778 - - 1.191,778 1,189,650 - - 5,291,737 5,291,737 6,166,497 - - 21,432,310 21,723,487 26,097,127 - - 40,085,000 40.085.000 35,000,000 - - 8,515.000 8,515,000 8.515,000 - - 1.663.200 1,663.200 2,296,500T 1.593.382 79,358.138 85.966,760 83_.0'89,346 - 19,286,535 - 19,286,535 12,462,249 - - 3,225,324 6,590,656 - - 5,291,737 6,166,446 - - - 22,199 34,518 - - - 58,639 26,615 - - - 127,520 - - - - 20,083,752 29,404,864 - - - 82,056 76,323 508,301 (662,573) 29.399.528 41,636,849 19,286.535 48,686.063 54.099,098 19.286.535 79.358.138 1�4.6�, 52.823 137.185.444 -3- (This page intentionally left blank) -4- CITY OF LA QUINPA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 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 obligations Mandated education contribution Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfer to agency fund Proceeds of bands (net of bond issuance casts of $254,584) Proceeds of advances from City Loss on investments Total other financing sources (uses) Year Ended June 30, 1993 Special Debt Capital General Revenue Service Prolects EXHIBIT BB Totals (Memorandum Only) 1993 1992 $3,581,830 2,068,455 10,646,741 - 16,297,026 15,025,353 622,107 - - - 622,107 576,293 384,000 - - - 384,000 488,030 11,546 - - - 11,546 9,043 - 84,302 - 823,965 908.267 692,278 1,146,041 310,585 - 225.605 1,682,231 1,144,688 238,321 287,077 224.219 1.027,355 1.776.972 2.073,500 219,641 51,012 - 9,249 279,902 246,108 - 605.462 9,851,766 605.462 770.382 6.203.486 3.406.893 10.870.960 2,086,174 22.567.513 21.025.675 1,807,205 53,399 10,902 1,421,255 3,292,761 2,649,053 2,393,202 - - - 2,393,202 2,155,813 146,686 135,500 - - 282,186 157,897 884,537 1,484,635 - - 2.369,172 1.456,791 600,253 1,067,340 - - 1,667,593 1.506,809 - 441,953 - 15.022,098 15,464,051 12,374,318 - - 760,000 - 760,000 550,000 - - 3,295,645 - 3,295,645 2,431,232 - - 9,851,766 - 9,851,766 6.150,707 - - 558,297 - 558.297 505,696 - - 8,152,245 - 8.152,245 948,242 1.587.351 1.587.351 5.831.883 3.182.827 24.216.206 16.443.353 49.674.269 30.886.558 371.603 224.066 (13.345.246) (14.357.179) (27.106.756) [9.860.883) - 153,022 9.979,914 4,783,246 14,916,182 5,129,364 (50,000) (706,639) - (14,159,543) (14,916,182) (5,129,364) - - - - - (143,984) - - - 5.590,416 5,590,416 18,623,566 - 517,779 - 8,761,240 9,279,019 9,644,862 - - (3.082.188) (5[].000) (35,838) 9,979,914 4,975,359 14.869,435 25.042,25 Excess (deficiency) of revenues and other sources over expenditures and other uses 321,603 188.228 (3.365,332) (9,381,820) (12,237,321) Fund balances at beginning of year 5.641.329 6.879.881 6.590.656 22.514.983 41,636,849 Fund balances at end of year 5J.962_93U 7.068.109 3.225.324 13.143.163 19.399.528 See accompanying notes to financial statements. -5- 15,181,373 26,455.476 41.636.849 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, 1993 Fund balances at beginning of year 5,641.329 5,641.329 Fund balances at end of year 55,422 03 5.962.932 535.129 See accompanying notes to financial statements. -6- General Fund Variance - Favorable Budget Actual (Unfaywable) Revenues: Taxes $3,613,633 3,581,830 (31,803) Licenses and permits 535,000 622,107 87,107 Charges for services 293,250 384,000 90,750 Fines and forfeitures 12,300 11,546 (754) Developer fees - - - Intergovernmental 1,174,735 1,146,041 (28,694) Interest 292,000 238,321 (53,679) Miscellaneous 170,156 219,641 49,485 Special assessments - - Total revenues 6.091.074 6.203.486 112.412 Expenditures: General government 1,945,183 1,807,205 137,978 Public safety 2.282,795 2,393,202 (110,407) Community services 285,307 146,686 138,621 Planning and development 1,132.570 884,537 248,033 Public works 608.745 600,253 8,492 Capital projects - - - Debt service: Principal - - - Interest _ _ - Payment of advances - - - Interest accrued on advances - - - Payments under pass through obligations - - - Mandated education contribution Total expenditures 6.254.600 5.831.883 422.717 Excess (deficiency) of revenues over expenditures (163.526) 371.603 535,129 Other financing sources (uses): Operating transfers in - - _ Operating transfers out (50,000) (50,000) - Transfer to agency fund Proceeds of bonds payable - - - Proceeds of advances from City - _ - Proceeds of notes Total other financing sources (uses) (50,Q00) (50.000) Excess (deficiency) of revenues and other sources over expenditures and other uses (213.526) 321,603 535,129 Fund balances at beginning of year 5,641.329 5,641.329 Fund balances at end of year 55,422 03 5.962.932 535.129 See accompanying notes to financial statements. -6- EXHIBIT CC Special Revenue Funds_ Debt Service Funds _ Capital Projegls F Variance- Variance- Variance - Favorable Favorable Favorable Budget Actual__ (Unfavorable) Budget Actual (Unfavorable] Budget Actual (Unfaygrable) 1,994,560 2,068,455 73,895 8,988,905 10,646,741 1,657,836 - - 28,375 84,302 55,927 - - - 850,000 823,965 (26,035) 151,000 310,585 159,585 - - - 693,150 225,605 (467,545) 176,400 287,077 110,677 620,400 224,219 (396,181) 180,000 1,027,355 847,355 43,814 51,012 7,198 - - - - 9,249 9,249 557.080 605.462 48.382 2,951,229 3.406.893 455.664 9.609.305 10.870.960 1.261.655 1.723.150 u.086.174 363.024 48,611 53,399 (4,788) - 10,902 (10,902) 1,293,700 1,421,255 (127,555) 135,500 135,500 - - - - - - - 1,702,980 1,484,635 218,345 - - - - - - 1,065,767 1,067,340 (1,573) - - - - - - 477,954 441,953 36,001 - - - 30,525,529 15,022,098 15,503,431 - - - 760,000 760,000 - - - - - - - 6,986,385 3,295,645 3,690,740 - - - - - - - 9,851,766 (9,851,766) - - - - - - - 558,297 (558,297) - - - - - - 1,225,915 8,152,245 (6,926,330) - - - - - - 1.587.351 (1.587.351) - - 3.430,812 3.182.827 247.985 8.972.300 24.216.206 (15,243.906) 31,819,229 16.443.353 15.375.876 (479.583) 224.066 703.649 637.005 (13.345.246) (13.982.251) (30.096.079) (14.357.179) 15.738.900 (53,632) 153,022 206,654 - 9,979,914 9,979,914 4,825,274 4,783,246 (42,028) (103,632) (706,639) (603,007) - - - - (14,159,543) (14,159,543) - - -- - - - 3,600,000 5,590,416 1,990,416 - 517,779 517,779 - - - 4,441,247 8,761,240 4,319,993 (157.264) (35.838) 121.426 9.979.914 9.979,914 12.866.521 4.975.359 (7.891.162) (636,847) 188,228 825,075 637,005 (3,365,332) (4,002,337) (17,229,558) (9,381,820) 7,847,738 6.864,014 6,879,881 7.068.109 15.867 840.942 5.024.697 5.661.702 fit520,656 3.225.324 1.565.959 (2.436.378) 17.480.033 25d-475 22.524,983 14� ;.163 5.044.950 12.892.688 6.227.167 CITY OF LA QUINTA Notes to the Financial Statements June 30, 1993 (1) Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta was incorporated 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 Powers Authority (b) Fund 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. (Continod) 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 which are not paid through other funds. Soecial 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 Prai?,ct 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 Funds 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 Qaneral Fixed Assm 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) (14 Summat_y of Significant Accounting, Policies, (Continued_) (b) Fuad Accounting, (Continpedl 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. Ge1]€ra1 Long-T?,rm Debt Account Group The General Long -Term Debt Account Group is used to account for all long-term debt of the City. (c) Measurement Fo us and Basis of Ac ountin 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 mm f 5ignificant Accounting Policies, fCDntinu d (c) Measurement Fads and Basis of AQcgunting. (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. The City adopts an annual budget prepared on the modified accrual basis of accounting for all funds except for the South Coast Air Quality, Financing Authority, Assessment District 88-1, Assessment District 89-2, Assessment District 90-1, Assessment District 91-1, and Assessment District 92-1 Funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. (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) Advan gs to Other Fund 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 Accounting Policies. [Continued] (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) 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, 1993. The County of Riverside assesses, bills, and collects property taxes for the City. (i) E1pplp_yee 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 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) are considered contingent liabilities and are not reflected in the accompanying financial statements. (j) 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. -12- CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) (k) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. (1) it 1 Pro' s Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. (m) M m r n m Qnly To l 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. (2�) Cash and Investments Cash and investments held by the City at June 30, 1993 consisted of the following: Book Balance Petty cash and change funds $ 700 Deposits (380,316) Investments 27,644,945 Total $27.265.329 Cash and cash equivalents are classified in the accompanying combined balance sheet as follows: Cash and cash equivalents $19,238,631 Cash with fiscal agent 8,026.698 $22,265.32 —13— CITY OF LA QUINTA Notes to the Financial Statements (Continued) The City and its component units are generally authorized under state statutes and local resolutions to invest in the following types of investments: 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 Bankers' acceptances California Local Agency Investment Fund Repurchase Agreements 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. 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. —14— CITY OF LA QUINTA Notes to Financial Statements (Continued) (2) Cash and Investments, (Continued) 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: Catego1y Bank Book Form of Deposit 1 2 B Balance Demand deposits $119,015 1,243,227 - 1.422.242 (380.316) Total deposits $179.015 1-243.22 - 1.42 (380,316) 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. Form of Investment Mutual Funds Local Agency Investment Fund Total investments Carrying Market Amount Value $ 7,211,032 20,433,913 7,211,032 20,433,913 The investments above are not classified by custodial risk because they do not represent a direct investment in securities. -15- CITY OF LA QUINTA Notes to Financial Statements (Continued) Q�_ Property 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 are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes 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 shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction of elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. A summary of changes in general fixed assets follows: Total -16- Balance at Balance at June 30. 1992 Additions Retirements June 30. 1993 Land $ 8,041,393 - - 8,041,393 Equipment & furniture 517,725 29,538 9,354 537,909 Vehicles 329,101 - - 329,101 Leasehold improvements 201,070 - - 201,070 Construction in progress 3,268,510 6,804,102 - 10,072,612 Buildings 104,450 - - 104.450 Total -16- CITY OF LA QUINTA Notes to Financial Statements (Continued) (5) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 1993 were as follows: City: Compensated absences payable Claims payable Obligation under capital lease RDA Project Area No. 1: Tax allocation bonds Revenue bonds Pass through agreements payable: Due to County of Riverside Desert Sands Unified School District Coachella Valley Unified School District Notes payable - individuals Advances from other funds • RDA Project Area No. 2: Tax allocation bonds Notes payable - individuals Advances from other funds • Total Balance at Balance at July 1. 1992 Additions Deletions June 30. 1993 161,593 94,442 21,955 2,092,901 21,562 - 35,000,000 8,515,000 8,219,503 698,044 3,254,880 180,000 14,402,793 - 885,885 - 2,672,002 7,330,235 5,845,000 256,035 - 2,114,856 21,562 - 760,000 34,240,000 - 8,515,000 4,248,219 4,669,328 344,610 3,090,270 730,081 13,672,712 304,677 581,208 9,881,904 120,333 1,320,615 - 238,623 3.494.495 _1,948.784 271.875 18.189.406 16.8t?1-55r 5,845,000 1,081,992 5,171.404 * Advances from other funds are monies owed by the La Quinta Redevelopment Agency to the City of La Quinta, which also include accrued interest on advance. (6) 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. 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 $752,569 was set aside at June 30, 1993. The principal balance of outstanding bonds at June 30, 1993 was $7,240,000. -17- CITY OF LA QUINTA Notes to Financial Statements (Continued) (6) Tax Allocation Bonds. (Continued) 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 was used to refund 1985 Tax Allocation Bonds. Interest due on the bonds at rates ranging from 5.81% to 6.8% is payable semi-annually 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 in 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 to 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, at 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, 1993 is $18,475,000. La Quinta Redevelopment Project Tax Allocation Bonds, Series 1991, were issued by the Agency on October 1, 1991, in the amount of $8,700,000 for Project Area No. I. Interest is payable semi-annually, on March 1 and September 1 of each year. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. The 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 $744,967 was set aside at June 30, 1993. The principal balance of outstanding bonds at June 30, 1993 was $8,525,000. La Quinta Redevelopment Project Tax Allocation Bonds, Series 1992, were issued by the Agency on December 1, 1992, in the amount of $5,845,000 for Project Area No. 2. Interest is payable semi-annually on June 1 and December 1 of each year. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. Interest payments range from 3.75% to 6.90% per annum. The bonds maturing on or before December 1, 1999 are not subject to optional redemption prior to maturity; however, bonds maturing on or after December 1, 2000 may be called before maturity and redeemed in whole or in part on any interest payment date thereafter at a redemption price equal to the principal amount, plus accrued interest, plus a premium of 1% to 2%. The bonds maturing on or after December 1, 1996 are subject to mandatory redemption in part without premium on June 1, 1996. Under the terms of the bond, the maximum annual debt service or 10% of the principal amount of the bonds 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. The principal balance of outstanding bonds at June 30, 1993 was $5,845,000. -18- CITY OF LA QUINTA Notes to Financial Statements (Continued) (7) 1991 Lc_cal Aggncy 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 payments 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%4 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 $738,855 was set aside as of June 30, 1993. The principal balance of outstanding bonds at June 30, 1993 was $8,515,000. (8) Due ty CQun;y cf_R_ iv_erside 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 amounts allocated to the low income housing fund. The payments 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 as of June 30, 1993 is $4,669,328, including $698,044 of current year accrued interest. This amount has been recorded in the general long-term debt account group. From the remaining fifty percent of tax increment revenue, the Agency is to set aside the 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 were due under this provision at June 30, 1993. Certain aspects of the Agency's agreement with the County are currently being re -negotiated. RiM,.- .. . • W•M• ROMMM 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 identified all tax increment revenue associated with the District for Project Area No. 1. The tax increment is paid to the District over a payment schedule through July 1, 1998 in amounts ranging from $21,505 to $547,505 for a total amount of $4,132,020. -19- CITY OF LA QUINTA Notes to Financial Statements (Continued) (9) Notes Payable to -Desert Sands Unified School }district, (Continued) Alternatively, such tax increment revenues plus interest accrued required by this agreement may be retained by the Agency to pay on behalf of the District principal and interest on loans, construction projects or money advanced to finance a sports complex and related amenities as specified by the District. Tax increment payments outstanding at June 30, 1993 totaled $3,090,270. 10 Notgs PaysIble t hellg hellViffley QnifiedSchool 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 subordinate to their indebtedness of the Agency incurred in futherance of the Redevelopment Plan for Project Area No. I. This tax increment is paid to the district over a payment schedule through 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, 1993 totaled $13,672,712. 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. (11) NQt+�s 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 $3,383,500 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, 1993 for Project Area No. 1 is $581,208 and $1,081,992 for Project Area No. 2. L2) Advances frgm the City of La.-Quinta 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: There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. -20- Balances at Balances at July 1. 1992 Proceeds Repayments June 30. 1993 Agency expenditures incurred by the City: Project Area No. 1 $2,672,O02 7,330,235 9,881,904 120,333 Project Area No. 2 3,494,495 1,948,784 271.875 5,171,404 There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. -20- CITY OF LA QUINTA Notes to Financial Statements (Continued) (13) Debt Service R?,guirements to Maturity Principal & Interest 14,381,997 36,384,232 15,832,167 12,524,333 17,823,134 3,090,270 13,672,712 2,037,420 115,746,265 Less: Interest (7,141,997)(17,909,232) (7,307,167) (6,679,333)(9,308,134) - - (374,220) 485 ___,7 33) Total Principals 7.240.000 18.475.000 8.525.000 5.845,000 8.515.000 3.0 LM 13.672"%I2 1.66 0 X7,026.182 $90,000 each to be paid in 1993-94 and 1994-95 for project area number 2. -21- 0 Pass-through Redevelopment Agency RDA Financing Agreements PA #1 Notes Prosect Ares. No. 1 PA #2 Authority Desert Coachella Payable Tax Tax Tax Tax Revenue Sands Valley to Year Allocation Allocation Allocation Allocation Bonds Unified Unified Individuals Ending Series Series Series Series Series School School PA #1 43% June 30 1989 1990 1991 1992 1991 District District PA #2 57% Total 1993-94 $ 726,263 1,841,535 728,175 428,770 548.353 524,050 776,353 565,488 6,138,987 1994-95 729,270 1.836,768 725.743 472,457 699,477 661,560 624,473 528,066 6,277,814 1995-96 726,225 1,839,850 722,675 493,857 696.403 628,000 474,517 490,644 6,072,171 1996-97 727,100 1,835,555 723,810 503,607 697,570 707,650 526,560 453,222 6,175,074 1997-98 726.690 1,833,155 723,988 502.127 697,987 569,010 580,683 - 5,633,640 1998-99 724,695 1,832,913 723.210 510,065 697,623 - 621,976 - 5,110,482 1999-00 721,895 1.829,532 721,475 501,805 696,407 - 649,927 - 5,121,041 2000-01 722,260 1.827,948 723,625 508,265 694,413 - 670,817 - 5,147,328 2001-02 720,400 1,828,158 724,500 503,500 696,467 - 684,233 - 5,157,258 2002-03 721,200 1,825,171 719,259 508.100 697,398 - 697,918 - 5,169,046 2003-04 720.000 1,823.639 722,744 501,550 692.327 - 711,877 - 5,172,137 2004-05 716,800 1,823,227 719,794 509,490 690,766 - 726,114 - 5.186,191 2005-06 716,400 1,818,764 720,409 505.890 692,479 - 740,636 - 5,194,578 2006-07 718,400 1,811,210 719.431 506,400 692,861 - 755,449 - 5,203,751 2007-08 712.800 1,808,810 716,860 505,650 691,914 - 770,558 - 5,206,592 2008-09 714,000 1,803,640 717,535 503,850 689,636 - 785,968 - 5,214,629 2009-10 712,800 1,800,070 716,297 506,000 690,863 - 801,688 - 5,227,718 2010-11 708,000 1,792,470 713,080 506.750 690,426 - 817,722 - 5,228,448 2011-12 709,600 1,789,999 712,720 506,100 688,328 - 834,076 - 5,240,823 2012-13 707,199 1,781,818 714,959 509,050 684,566 - 421,167 - 4,818,759 2013-14 - - 709,799 505,250 683,976 - - - 4,899,025 2014-15 - - 712,079 505,050 686,225 - - - 1,903,354 2015-16 - - - 503.100 681,313 - - - 1,184,413 2016-17 - - - 509,400 684,072 - - - 1,193,472 2017-18 - - - 508,250 679,339 - - - 1,187,589 2018-19 - 681,945 - - - 681.945 Principal & Interest 14,381,997 36,384,232 15,832,167 12,524,333 17,823,134 3,090,270 13,672,712 2,037,420 115,746,265 Less: Interest (7,141,997)(17,909,232) (7,307,167) (6,679,333)(9,308,134) - - (374,220) 485 ___,7 33) Total Principals 7.240.000 18.475.000 8.525.000 5.845,000 8.515.000 3.0 LM 13.672"%I2 1.66 0 X7,026.182 $90,000 each to be paid in 1993-94 and 1994-95 for project area number 2. -21- CITY OF LA QUINTA Notes to Financial Statements (Continued) The City of La Quinta has entered into the sale of Improvement Bonds issued pursuant to the California State Improvement Act of 1915. 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 benefited 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 dos 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, 1993: Proceeds Maturity Date Interest Rate Amount outstanding at June 30, 1993 Assessment Assessment Assessment Assessment PAsirict No. 88-1 District No. 89-2 District No, 90-1 District__No.ice-. $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% 6.257.-6.75% S.5%-7.0% 6.70%6.80% 730,000 965,000 1,105,000 2,135,000 (15) Reserves and Designation of Fund Eqijily The City establishes "reserves" of fund equity to segregate amounts representing noncurrent assets which are not considered expendable available financial resources, and amounts legally restricted by parties external to the City. Fund "designations" also may be established by the City to indicate plans for the use of financial resources. Fund balances at June 30, 1993 consisted of the following reserves and designations: Total General Special Debt Capital (Memorandum Fund Revenue Service Protects Only) Reserved for: Debt service $ - - 3,225,324 - 3,225,324 Advances to other funds 5,291,737 - - - 5,291,737 Loans receivable 22,199 - - - -22,199 Deposits 58,639 - - - 58,639 Notes receivable 127.520 127.520 Subtotal 5.372.575 127.520 3.225.324 8.725.419 Unreserved: Designated for: Equipment replacement 82,056 - - - 82,056 Special projects 6,940,539 - 13.143.163 20.083.752 Subtotal 82.056 6.940.589 13:143.163 20.165.808 Undesignated 508.301 - 508.301 Total fund equity S5.9kg.932 7.068.109 3, ;LJ2J 13.143.163 29.399.528 -22- CITY OF LA QUINTA Notes to Financial Statements (Continued) (16) Deferred Camper awn 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, 1993, the deferred compensation liability included in an Agency Fund was $242,487 carried at market value. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, 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. (17) City Employees Retiremmmt�nt Plan (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, 1993 was $1,989,263. The total payroll for the year was $2,080,857. 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. Employe anti Empliver 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 Notes to Financial Statements (Continued) 17) !City EmglaersRetireMC121 Elan D in B P i n ni 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, 1992. Neither an actuarial valuation nor an annual update as of June 30, 1993 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 8.75 percent a year compounded annually, (b) projected salary increases of 5.25 percent a year compounded annually, attributable to inflation, (c) additional projected salary increases of 1.75 percent a year, attributable to seniority/merit, and (d) no post retirement benefit increases. The total unfunded pension obligation applicable to the City employees was $47,662 at June 30, 1992, 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 $1,569,271) Unfunded pension benefit obligation Changes in the pension benefit obligation from last year resulted from the following: Changes in benefit provisions Changes in actuarial assumptions Total -24- $ 200,608 566,572 425,073 246.607 1,438,860 $ 254,386 CITY OF LA QUINTA Notes to Financial Statements (Continued) I Employees Retirement Plan (Defined Benefit P n i Plan i Actuarially Determined Contribution ReauireMents 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, 1993 of $267,870 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1991. The contribution consisted of the following: —25— Percent of Covered Amount Payroll_ Normal cost $266,418 13.39% Amortization of unfunded (overfunded) actuarial accrued liability 1.452 .08% Total contribution $267.7 13.47% Contribution: Employer 125,501 6.31% Employee 14.2369 7.16% Total contribution $267.570 13.47% —25— CITY OF LA QUINTA Notes to Financial Statements (Continued) (17) City Employes Ralirement Pian (Defined Benefit Pension Plan). (Continued) Trend Information For the three years ended June 30, 1991, 1992 and 1993, the total contribution to PERS was 13.2%, 12.34% and 13.47%, 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. 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, 1993 is not yet available. Until ten years of data are available, as many years as are available will be presented. Showing unfunded 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: (18) Claimi RayablelSelf ln_prance 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 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. Generally, 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 Obtfgation (11/(21 (2) - (1) Payroll (4)/ 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 1992 13,911.9 14,388.6 96.7 476.6 21,837.2 2.2 (18) Claimi RayablelSelf ln_prance 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 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. Generally, 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 Notes to Financial Statements (Continued) 1 Claims Payable/Self Insuran ntin 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 $10,000,000 per claim. The following represents summary financial information from the latest audit report released for the CVJPIA (year ended June 30, 1993): Total assets $10,729,355 Total liabilities 10.166.941 Fund equity $ 562,411 Total revenues $ 3,345,470 Total expenses 6,629,031 Net income (loss) (3,283,561) Retained earnings — beginning of year 3.$45 975 Retained earnings — end of year The claims payable for the CVJPIA at June 30, 1993 amounted to $8,509,769. Of the ending retained earnings balance, $21,735 pertain to the City of La Quinta. (19) Accumulated Fund_ Deficit The Capital Project "Assessment District 92-1" fund reported a deficit fund balance of $71,733 at June 30, 1993. —27— CITY OF LA QUINTA Notes to Financial Statements (Continued) (20) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 1993 exceeded the appropriations of the following funds: Special revenue funds: State Gas Tax Variance - Favorable Budget Actual(Unfavorable) 474,403 501,277 (26,874) Debt service funds: Redevelopment Agency PA #1 8,972,300 21,955,759 (12,983,459) Redevelopment Agency PA #2 868,590 1,712,094 (843,504) The excess expenditures in the Redevelopment Agency debt service funds are due to additional pass through withheld by the county, state mandated ERAF, and repayments of long-term advances. (21) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 1993 are as follows: General Fund Special Revenue Funds: State Gas Tax Debt Service Funds: Redevelopment Agency -Project Area #1 Capital Project Funds: Redevelopment Agency -Project Area #1 Redevelopment Agency -Project Area #2 Assessment District 92-1 -28- Current Current Interfund Interfund Receivables Payables $ 77,501 - 7,137 1,337,422 1,928,918 - - 591,496 - 70.3644 $2.(106.419-00� 6.419 CITY OF LA QUINTA Notes to Financial Statements (Continued) 22) Commitments Un r Development Agreements The Agency has entered into an Owner Participation Agreement (OPA) with Washington/Adams, a California limited partnership. In this Agreement, Washington/Adams is responsible for the development of a retail center located at the intersection of Washington Avenue and Highway I11. The Agency and Washington/Adams are to share in specific infrastructure improvements, with the Agency being responsible for a maximum of $3,156,000. In addition, the Agency agrees to reimburse Washington/Adams a maximum of $575,460 for engineering design, permit fees, plan checks and inspections, and general contractor fees. (23)Contin eg ncies. 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. During the year ended June 30, 1992, the City recorded a loss for the write-off of the funds held by the advisor on December 11, 1991 in the amount of $3,089,760. On February 5, 1992, the receiver for Iowa Trust, 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 Iowa Trust. On July 30, 1993 the City settled the above described civil action and agreed to pay Iowa Trust $2,000,000. The City also agreed to pay Iowa Trust the first $500,000 recovered by it in claims or actions against third parties arising out of the fraud scheme. After that, the City will split, fifty/fifty (50/50), all recoveries from third party actions up to such time as Iowa Trust receives from the City a total of $5,300,000. -29- (This page intentionally left blank) -30- SPECIAL REVENUE FUNDS -31- CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 1993 Assets Cash and investments Accounts receivable Notes receivable Due from other governments Total assets Liabilities and Fund -Balances Liabilities: Accounts payable Deposits payable Due to other funds Accrued expenses Total liabilities Fund balances: Reserved: Notes receivable Unreserved: Designated for special projects Total fund balances Total liabilities and fund balances Community Assessment State Service Landscape District Gas Tax Projects Maintenance 89-1 $ - 1,163,928 - 159,626 21,168 - - 53,080 54.320 - 1.163.928 - ,106 $22,987 - - 12,062 - - - 34,840 7,137 - - - 5,732 - - 7.971 35.856 - 54.873 39.632 1.163.928 - 157.833 39.632 1,163,928 15 -32- EXHIBIT A-1 —33— Low Income Low Income Village South Coast Housing- Housing- Totals Quimby Parking Air Q114 1 i I,y PA #1 PA #2 1993�1 .92_.� 660,611 26,561 16,041 3,957,532 918,451 6,902,750 6,923,740 _ _ _ - - 74,248 - - - - 127,520 - 127,520 - - 26.561 16.041 4.dg5.d5 918.451 54,320 7.158.838 57,906 6.981.646 660.611 _ - _ _ - 35,049 54,770 34,840 34,840 - - - - - 7,137 - 13,703 12.155 _ 90,2 101,765 - - - 127,520 - 127,520 - 660,611 26,561 16,041 3,957,532 918,451 6,940,589 6,879,881 660,611 26,561 26.561 16,041 16.041 4,085,052 4.085.052 918,451 9.1.8,.451 7,068,109 7.15LM 6,879,881 6.981.646 660.611 —33— CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: General government Community services Planning and development Public works Capital projects Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Proceeds of advances from City Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Residual equity transfer Fund balances at end of year Community Assessment State Service Landscape District Gas Tax Projects Maintenance 89-1 -7� 287,965 - - - 11,699 91,562 2,428 4,850 10,992 - - 11,548 605.462 91.562 2,428 21 135,500 - - 471,544 - - 595,796 29.733 40.165 - 721 501.277 175.665 669,417 (190,621) (84.103) 2.428 (47,557) 50,000 - - 103,022 - - (103.022) 50.000 (103,022) 103.022 (140,621) (84,103) (100,594) 55,465 180,253 1,248,031 100,594 102,368 -34- EXHIBIT A-2 605.462 536.,464 53,613 10.694 23.579 1.870,750 Low Income Low Income 2,999,700 - - Village South Coast Housing- Housing - - _ Quimby Parkin Air Quality PA #1 PA #2 1993 1992 _ _ _ 1,664,567 403,888 2,068,455 1,903,385 - 8,838 - 75,464 - 84,302 41,314 - - 22,620 - - 310,585 223,228 53,613 1,856 959 102,247 17,863 287,077 281,421 - - - 28,472 - 51,012 13,888 605.462 536.,464 53,613 10.694 23.579 1.870,750 421,751403. 6,.893 2,999,700 - - 7,538 - 45,861 53,399 3,904 - _ _ 135,500 - _ 1,484,635 - 1,484,635 552,620 _ _ _ - - 1,067,340 888,197 41.594 - - 256.840 - 441.953 775,192 41,594 7.538 1,741,475 45,861 3,182,827 2,219,913 12.019 10,694 16.041 129,275 375,890 224.066 779,787 12,019 10,694 648,592 15,867 660.611 26.561 16,041 16.041 471,918 45,861 603 617) - (131,699) 45,861 (2,424) 4,087,476 421,751 496,700 4.085.052 918.451 -35- 153,022 203,306 517,779 824,730 (706,639) _(311,568) (35,838) 716.46.8 188,228 1,496,255 6,879,881 4,208,454 1175, UZ 7.0 1096-822-8 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, 1993 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 -36- EXHIBIT A-3 Variable Favorable Budget Actual (Unfavorable) 151,000 287,965 136,965 26,200 11,699 (14,501) 18,163 10,992 (7,171) 195.363 310.656 115,293 474,403 471,544 22,233 474.403 501.277 (279.040) (190,621) 50,000 50,000 50.000 50,000 (229,040) 180.253 S(48,7AZ) (140,621) 1 U,253 39.632 2,859 (29.733) 2�) 88.419 88,419 88.419 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, 1993 Revenues: Taxes Developer fees Intergovernmental Interest Miscellaneous Special assessments Total revenues Expenditures: Community services 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 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- EXHIBIT A-4 Variable Favorable Budget Actual (Unfavorable) 91,562 91,562 - 91.562 91.562 135,500 135,500 - 50.000 40.165 9.835 185.500 175.665 9.835 (185.500) (84.103) 101.397 (185,500) (84,103) 101,397 L248,031 031 1.248.031 - $1.062.LU 1.1� 63,228 101.397 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, 1993 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 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 -38- EXHIBIT A-5 Variable Favorable Budget Actual (Unfavorable) 2,428 2.428 2,428 2.428 2.428 2.428 (103,632) (103,022) (103,632) (103.022) (103,632) 100,594 $ (3.038) (100,594) 100,594 610 610 3,038 3.038 EXHIBIT A-6 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, 1993 Variable Favorable Budgfct Actual f v r le Revenues: Taxes $ - - - Developer fees - - - Intergovernmental - - - Interest - 4,850 4,850 Miscellaneous 25,651 11,548 (14,103) Special assessments 557.084 605.462 48.382 Total revenues 582,731 621360 39.129 Expenditures: General government - - - Planning and development - - - Public works 591,364 595,796 (4,432) Capital projects 96.0 73,621 22.426 Total expenditures 687.411 669.417 17,994 Excess (deficiency) of revenues over expenditures (104,680) (47,557) 57.123 Other financing sources (uses) Operating transfers in (103,632) 103,022 206,654 Operating transfers out - - -- Proceeds of advances from City - - - Loss on investments Total other financing sources (uses) (103.632) 103,022 206.654 Excess (deficiency) of revenues and other sources over expenditures and other (uses) (208,312) 55,465 263,777 Fund balances at beginning of year 102.368 1.02.368 - Fund balances at end of year ) 157.8BB 263,222 -39- 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, 1993 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 -40- EXHIBIT A-7 Variable Favorable Budget Actual of vor b_le 25,000 - (25,000) 53,613 53,613 25.000 53.613 28,613 75.000 41,594 33.406 75.000 41,594 33,406 (50.000) 12.019 62,019 (50,000) 12,019 62,019 648,592 ,48,592 - $.59$.-592 660,611 62 . a 12 EXHIBIT A-8 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, 1993 Variable Favorable Budget Actual (Unfavorable] Revenues: Taxes $ - - - Developer fees 3,375 8,838 5,463 Intergovernmental - - - Interest - 1,856 1,856 Miscellaneous - - - Special assessments - Total revenues 3.375 10.694 7.319 Expenditures: General government - - - Planning and development - - - Public works - - Capital projects - - Total expenditures - Excess (deficiency) of revenues over expenditures 3.375 10,694 7,319 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) 3,375 10,694 7,319 Fund balances at beginning of year 15.867 15,857 Fund balances at end of year 119,242 26,, 7.319 -41- CITY OF LA QUINTA Special Revenue Funds South Coast Air Quality Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: EXHIBIT A-9 Taxes $ Developer fees - Intergovernmental 22,620 Interest 959 Miscellaneous - Special assessments - Total revenues 23,579 Expenditures: General government 7,538 Planning and development - Public works - Capital projects Total expenditures .7.538 Excess (deficiency) of revenues over expenditures 6,41 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) 16,041 Fund balances at beginning of year Fund balances at end of year $16.041 -42- 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, 1993 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 -43- EXHIBIT A-10 1.788,658 1,870_750 82.092 1,702,980 1,484,635 218,345 256,907 256.840 67 1.959.887 1.741.475 218.412 (171,129) 129.275 300,504 (603,617) (603,617) 471,918 471,918 - (131.699) (131.699) (171,229) (2,424) 168,805 4.087.476 4.087.476 $3.916:247 4 085= 168,8U Variable Favorable Budget Actual (Unfavorable $1,648,658 1,664,567 15,909 - 75,464 75,464 140,000 102,247 (37,753) - 28,472 28,472 1.788,658 1,870_750 82.092 1,702,980 1,484,635 218,345 256,907 256.840 67 1.959.887 1.741.475 218.412 (171,129) 129.275 300,504 (603,617) (603,617) 471,918 471,918 - (131.699) (131.699) (171,229) (2,424) 168,805 4.087.476 4.087.476 $3.916:247 4 085= 168,8U EXHIBIT A-11 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, 1993 Variable Favorable Budget Actual Unfavorable) Revenues: Taxes $345,902 403,888 57,986 Developer fees - - - Intergovernmental - - - Interest 10,200 17,863 7,663 Miscellaneous - - - Special assessments - Total revenues 356.102 421.751 65.649 Expenditures: General government 48,611 45,861 2,750 Planning and development - -- - Public works - - - Capital projects - - - Total expenditures 48.611 45,861 2.750 Excess (deficiency) of revenues over expenditures 307.491 375.890 68.399 Other financing sources (uses) Operating transfers in - - - Operating transfers out - - - Proceeds of advances from City - 45,861 45,861 Loss on investments Total other financing sources (uses) - 45.861 45.861 Excess (deficiency) of revenues and other sources over expenditures and other uses 307,491 421,751 114,260 Fund balances at beginning of year 426,290 496 dffl Fund balances at end of year -44- DEBT SERVICE FUNDS -45- Assets Cash and investments Cash with fiscal agent Due from other governments Total assets Liabilities and Fund Balance Liabilities: Due to other funds Obligations under pass through agreements Total liabilities Fund balances: Reserved for debt service Total fund balances Total liabilities and fund balances EXHIBIT B-1 CITY OF LA QUIPTA Debt Service Funds Combining Balance Sheet June 30, 1993 Redevelopment Redevelopment Financing Totals Agency -PA #I gncv-PA #2 Authority 1993 1992 $ - 1,846,144 - 1,846,144 3,385,953 1,498,030 394,538 1,058,152 2,950,720 3,120,667 42.453 14,606 57.059 303,987 S1.540.483 2.25288, 1,058,w 4.853.923.81D.607 $1,337.422 132.661 1.470,083 70,400 70.400 —46— -. - 1,337,422 - 158.516 291.177 219.951 158,516 1.628,599 219.951 2,096,772 1,058,152 3,225,324 6,590,656 2,096,772 1,058,152 3,225.324 6,590,656 CITY OF LA QUIIPTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: Taxes Interest Total revenues Expenditures: General government Debt service: Principal Interest Payment of advances Interest accrued on advance Payments under pass through agreements Mandated education contribution 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 over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year EXHIBIT B-2 Redevelopment Redevelopment Financing Totals Agency -PA #I Agency -PA #2 Authority 1993 1992 $ 9,031,189 1,615.552 - 10,646,741 9,986,924 80.265 103.408 40.546 224.219 420,921 9,111,454 1.718.960 40.546 10.870.960 I0.407.845 10,902 - - 10,902 - 760,000 - - 760,000 550,000 2.550,294 196,998 548,353 3,295,645 2,431,232 9,629,729 222,037 - 9,851,766 6,150,707 131.504 426,793 - 558.297 505,696 7,435,947 716,298 - 8,152,245 948,267 1,437.383 149.968 1.587.351 - 21.955,7_52 1.712.094 548.353 24,216.206 10.585.902 (12.844.305) 6.866 (507.807) (13.345.246) (178.057) 9,573,855 406,059 - 9,979,914 2,573,407 (259,550) 508.456 9.573.855 406.059 - 9,972,214 2,822.313 (3,270,450) 412,925 (507,807) (3,365,332) 2,644,256 3.340,850 1.683.847 1.565.959 6.590.656 3.946.400 S 1.058.15 3.225.324 �;bSG -47- EXHIBIT B-3 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, 1993 Variable Favorable Budgrq Actual (Unfavorable) Revenues: Taxes $8,988,905 9,031,189 42,284 Interest 620,400 80,265 (540,135) Total revenues 9,609,305 9,111,454 (497.851) Expenditures: General government - 10,902 (10,902) Debt Service: Principal 760,000 760,000 - Interest 2,601,351 2,550,294 51,057 Payment of advances 4,385,034 9,629,729 (5,244,695) Interest accrued on advance - 131,504 (131,504) Payment of pass-through agreements 1,225,915 7,435,947 (6,210,032) Mandated education contribution - 1,437,383 (1,437,383) Total expenditures 8,972,300 21.955.759 (12,983,459) Excess (deficiency) of revenues over expenditures 637,005 (12,844,305) (13,481,310) Other financing sources (uses) Operating transfers in - 9,573,855 9,573,855 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 Fund balances at end of year -48- 9,573,855 9.573 _855 637,005 (3,270,450) (3,907,455) 3.340.850 3.340_,850 $3.977.855 70.400 13.407.455) 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, 1993 Variable Favorable Budget Actual (Unfavorable) Revenues: Taxes $1,383,608 1,615,552 231,944 Interest 60.800 103.408 42,608 Total revenues _1.444.408 1.718.960 274.552 Expenditures: Debt Service: Principal - - - Interest 200,000 196,998 3,002 Payment of advances 40,000 222,037 (182,037) Interest accrued on advance - 426,793 (426,793) Payment of pass-through agreements 628,590 716,298 (87,708) Mandated education contribution 149.968 (149,968) Total expenditures _868.590 1.712.094 (843.504) Excess (deficiency) of revenues over expenditures 575,818 6.866 (568.952) Other financing sources (uses) Operating transfers in 400,000 406,059 69059 Operating transfers out - - - Proceeds of advances from City - - Total other financing sources (uses) 400.000 406,059 - Excess (deficiency) of revenues and other sources over expenditures and other uses 975,818 412,925 (562,893) Fund balances at beginning of year 1,683,847 1_683,847 - Fund balances at end of year 2.6 "' 0l (522..$0 -49- EXHIBIT B-5 CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: Taxes $ - Interest 40,546 Total revenues 40,546 Expenditures: Debt Service: Principal - Interest 548,353 Payment of advances - Interest accrued on advance - Payment of pass-through agreements Total expenditures 548.353 Excess (deficiency) of revenues over expenditures (507.807) 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 (507,807) Fund balances at beginning of year 1,565,259 Fund balances at end of year $,], _ 058.152 -50- CAPITAL PROJECTS FUNDS -51- CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 1993 Assets Cash and investments Cash with fiscal agent Accounts receivable Due from other funds Due from other governments Total assets Liabilities and FundBalans?. 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 Assessment District District District District 88-1 89-2 90-1 91-1 $89,682 105,935 263,057 767,563 $89.582 105.935 263,057 767.563 163,247 - - 163,247 89.682 105.931 263.057 604,316 3 89.682 $89-682 105.935 105.935 263,057604,316 263,057 76:7.563 -52- EXHIBIT C-1 Assessment District Financing Infra- Redevelopment Redevelopment Totals 92-1 Authority structure Agengy-PA#1 ncy-PA#2 1993 1992 - - 3,147,041 3,434,311 - 7,807,589 19,638,454 - - - - 5,075,978 5,075,978 4,352,226 - - - 3,973 - 3,973 1,299 - - - 1,928,918 -- 1,928,918 - - - 3 `L47.041 375.804 5,.21106 225.605 5.301.583 601,402 15J17,867, 3 6 543 - 24.378.522 1,369 - 40,593 424,827 - 466,789 888,376 - - 474 401 146 1,021 217 - - 77,100 - - 77,100 77,100 - - 904,687 - - 1,067,934 769,772 70.364 - - 591.496 _661,860 118.074 71.733 - 1.022.854 425.228 591.642 2.274.704 1,853.539 (71.733) 2.124.187 5.317.778 4.709.941 13.143.163 22.524.983 (71.733) 2.124.187 3-117-041 5,317.778 5,743,006 4.709.941 5+30 .583 13.143.163 15.417.867 22.524.983 - 24.379,522 -53- CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: Intergovernmental 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 to agency fund Proceeds of bonds Proceeds of advances from City Loss on investments Total other financing sources Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year Assessment Assessment Assessment Assessment District District District District 88-1 89-2 90-1 91-I 6,261 8,039 26,020 62,523 6.261 8.039 26.020 62,523 6,261 8.039 �2 ,020 (276,809) 475,168 475.168 6,261 8,039 26,020 198,359 83.471 97,895 237,031 405,957 $89.�82 JQ5.935 263,057 604J-1 -54- EXHIBIT C-2 Assessment District Financing Infra- Redevelopment Redevelopment Totals 92-1 Authority structure Agency -EAC _Agency-PA#21993 1992 - - - -� 225,605 225,605 - - - - - - - 15 - - 823,965 - - 823,965 650,964 (1,039) 73,926 353,346 427,151 71,128 1,027,355 1,109,778 - - - 9,249 - 9,249 111,353 - - - 1,902,923 - 233.918 (1.039) _73.926 1,177.311 436,400 296.733 2,086,174 2,106,028 (1,240,296) (4,308.078) - - - 1,008,623 412,632 1,421,255 723,969 57.181 7,644.180 4,632,783 2,341.622 15.022.098 11.587,313 (9,381,820) 57.181 - 7,644.180 5.648.406 2,754.254 16.443.353 12.311.282 (58,220) 7,926 (6,466,869) (5,212,006) (2,457,521) (14,357,179) (10,205,254) - - 4,308,078 - - 4,783,246 2,352,651 - (4,308,078) - (9,445,406) (406,059) (14,159,543) (4,869,814) - - - - - - (143,984) - - - - 5,590,416 5,590,416 18,623,566 - - - 6,858,317 1,902,923 8,761,240 8,311,676 - - - - - - (1,240,296) (4,308.078) 4.308,078 (2,587,089) 7.087.280 4,975,359 23.033,799 (58,220) (4,234,152) (2,158,791) (7,799,095) 4,629,759 (9,381,820) 12,828,545 (13,513) 4,234,152 (�1 ) 4_282.978 13,116,573 5.317 , 778 80,182 4.709.941 22.524,983 13.14LI.63- 9,626,43_8 524 - 9$3 -55- CITY OF LA QUINTA Capital Project Funds Assessment District 88-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: EXHIBIT C-3 Charges for services $ - Developer fees - Interest 6,261 Miscellaneous - Special assessments Total revenues 6.261 Expenditures: General government - Capital projects - Total expenditures - Excess (deficiency) of revenues over expenditures 6.261 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 6,261 Fund balances at beginning of year 83,421 Fund balances at end of year $89.+82 -56- CITY OF LA QUINTA Capital Project Funds Assessment District 89-2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: EXHIBIT C-4 Charges for services $ - Developer fees - Interest 8,039 Miscellaneous - Special assessments Total revenues 8.039 Expenditures: General government - Capital projects - Total expenditures - Excess (deficiency) of revenues over expenditures 8.039 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 8,039 Fund balances at beginning of year 97.896 Fund balances at end of year $105.935 -57- CITY OF LA QUINTA Capital Project Funds Assessment District 90-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: EXHIBIT C-5 Charges for services $ - Developer fees - Interest 26,020 Miscellaneous - Special assessments Total revenues 26.020 Expenditures: General government - Capital projects - Total expenditures Excess (deficiency) of revenues over expenditures 26.020 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) �2 220 Fund balances at beginning of year 237.037 Fund balances at end of year �.057 -58- CITY OF LA QUINTA Capital Project Funds Assessment District 91-1 Fund Statement of Revenues,, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: EXHIBIT C-6 Charges for services $ - Developer fees Interest 62,523 Miscellaneous - Special assessments Total revenues2G •523 Expenditures: General government - Capital projects 339,332 Total expenditures 339.332 Excess (deficiency) of revenues over expenditures (276.809) Other financing sources (uses): Operating transfers in 475,168 Operating transfers out - Transfer out to agency - Proceeds of bonds - Proceeds of advances from City - Loss on investments Total other financing sources (uses) 475.168 Excess (deficiency) of revenues over expenditures and other sources (uses) 198,359 Fund balances at beginning of year 405,251 Fund balances at end of year $6114.316 -59- EXHIBIT C-7 CITY OF LA QUINTA Capital Project Funds Assessment District 92-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: Charges for services $ - Developer fees - Interest (1,039) Miscellaneous - Special assessments Total revenues (1.039) Expenditures: General government - Capital projects 57,181 Total expenditures 57.181 Excess (deficiency) of revenues over expenditures (58,220) 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 (58,220) Fund balances at beginning of year —CLLI) Fund balances at end of year $(71) -60- CITY OF LA QUINTA Capital Project Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1993 Revenues: EXHIBIT C-8 Charges for services $ - Developer fees Interest 73,926 Miscellaneous - Special assessments - Total revenues 73,226 Expenditures: General government - Public works Total expenditures Excess (deficiency) of revenues over,expenditures 73=926 Other financing sources (uses): Operating transfers in Operating transfers out (4,308,078) Transfer out to agency - Proceeds of bonds - Proceeds of advances from City - Loss on investments - Total other financing sources (uses) (4.30$.078) Excess (deficiency) of revenues over expenditures and other 4,234,152) sources (uses) Fund balances at beginning of year 4,234,152 Fund balances at end of year -61- 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, 1993 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 expenditure and other uses Fund balances at beginning of year Fund balances at end of year -62- EXHIBIT C-9 Variance Favorable BudgCt Actual (Unfavorable) 850,000 823,965 (26,035) 180,000 353,346 173,346 1.030.000 1.177.311 147.311 2,347,202 7.644.Ug 1.703.020 9.347.200 7.644.180 1.703.020 (8.317.200) (6,466.869) 4,825,274 4,308,078 (517,196) 4.825.274 4,308.078 (517.196) (3,491,926) (2,158,791) 1,333,135 4.282.978 4.282.978 - $ 791.052 2-12111az 1-331-121 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, 1993 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 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 -63- EXHIBIT C-10 Variable Favorable Budge_ Actual (Unfav-rablel 80,000 427,151 347,151 - 9,249 9,249 80,000 _ 436.400 356,400 888,824 1,008,623 (119,799) 12,848,808 4.639,783 8,209,025 13_,737,_632 5,648,406 8,089,226 (13,657:632) (5,212,006) 8,44S,626 - (9,445,406) (9,445,406) 4,385.034 6,858,317 2,473,283 4,385,034 (2,587,089) (6,972.-122) (9,272,598) (7,799,095) 1,473,503 13,116,873 13.116,873 $ 3.344.275 5.317.778 1.473,503 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, 1993 Revenues: Charges for services Developer fees Intergovernmental 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 Fund balances at end of year -64- EXHIBIT C-11 Variable Favorable Budget Actual Unfavorable) 693,150 225,605 (467,545) - 71,128 71,128 693.150 _ 296,733 (396.417) 404,876 412,632 (7,756) 8.329.521 2.341.622 5,987.$99 8.734.397 2.754.254 5.980.143 (8-041,247) (2.457.521) 5.583.726 (406,059) 3,600,000 5,590,416 4,441,247 1,902,923 8.041.247 7,087.280 80.182 $ 80.182 4,629,759 80.182 4.709.941 (406,059) 1,990,416 (2,538,324) (953.967) 4,629,759 4.629.759 AGENCY FUNDS -65- EXHIBIT D-1 CITY OF LA QUINTA Combining Balance Sheet - All Agency Funds June 30, 1993 Liabilities Due to bondholders $ - - 261,976 263,668 255,282 410,852 1,191,778 1,189,650 Deposits payable 159,117 - - - - - 159,117 152,967 Deferred compensation payable - 242.487 - - - 242.487 201.176 Total liabilities 5159.117 242.487 261.976' 263.668 255.282 410,852 1.593.382 1.543.793 -66- Arts in Employee's Assessment Assessment Assessment Assessment Public Deferred District District District District Total Places Compensation No. 88-1 No. 89-2 No. 90-1 No. 91-1 1993 1992 Assets Cash and investments $159,117 242,487 252,889 2S3,622 247,860 400,058 1,556.033 1,511,185 Due from other governments - - 9.087 10.046 7.422 10.7 37.L49 2" Total assets 5159.117 242.487 261.976 263.668 =LM 4lL= L.,9= LiiLm Liabilities Due to bondholders $ - - 261,976 263,668 255,282 410,852 1,191,778 1,189,650 Deposits payable 159,117 - - - - - 159,117 152,967 Deferred compensation payable - 242.487 - - - 242.487 201.176 Total liabilities 5159.117 242.487 261.976' 263.668 255.282 410,852 1.593.382 1.543.793 -66- ARTS IN PUBLIC PLA95 Assets Cash and investments Liabilities Deposits payable E1T YEE S DEFERRED gLMPEN3ATION Assets Cash and investments Liabilities Deferred compensation payable ASSESSM£!PP DISI"RICT R0. 88-1 Assets Cash and investments Due from other governments Total assets Liabilitie_� Due to bondholders ASSESSMENT DISTRIg NO. -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, 1993 Balance at Balance at July 1. 1992 Additions Deletions June 30. 1993 $ 245,620 131,690 124,421 252,889 5.912 9.087 5.912 9.087 S 251.532 140.777 130.333 w2fil.2?fs S251,532 14� 130.33 261.97fi $ 249,313 171,855 167,546 253,622 8.698 S 258.011 10.046 UL= 8.698 17� 10,046 J63-668 $ 258.011 18� IZLLU263.668 —67- EXHIBIT D-2 (Continued) CITY OF LA QUTATA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Year ended June 30, 1993 Balance at Balance at July 1. 1992 Additions Deletions June 30, 1993 AS$ESSMM D I I 1 Assets Cash and investments $ 261,162 173,778 187,080 247,860 Due from other governments 5.101 7.422 5.101 7.422 Total assets S' 266.263 181.200 192.181 255.282 Liabilijies Due to bondholders S 266.263 IUI= 192.181 255.282 AA SESSSM DISTRICT NO. 91-1 Assets Cash and investments $ 400,947 333,417 334,306 400,058 Due from other governments 12.897 10,794 12.897 10.794 Total assets S 413.844 344.211 347.203 Liabilities Due to bondholders S 413.844 344.211 347.203 410,852 TOTALS -ALL AGENCY FMSi Assets Cash and investments $1,511,185 888,349 843,501 1,556,033 Due from other governments 32.608 37.349 32.608 37.349 Total assets Sjj,j43.793 925.698 876.109 1.593.382 Liabilities Deferred compensation $ 201,176 41,311 - 242,487 Deposits payable 152,967 36,298 30,148 159,117 Due to bondholders 1.189.650 $4$_.0$9 845.961 1.191.778 Total liabilities 1.93 27 876.109 1.593.382 -68-