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2000 01 12 IABP.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 (TDD) (760) 777-1227 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 January 12, 2000 - 5:30 P.M. I CALL TO ORDER A. Pledge of Allegiance B. Roll Call II PUBLIC COMMENT- (This is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on December 8, 1999 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for November, 1999 VI CORRESPONDENCE AND WRITTEN MATERIAL A. City of La Quinta FY 98/99 Audited Financial Statements B. Month End Cash Report and Selected Interest Rates - December 1999 C. Pooled Money Investment Board Reports - October, 1999 VII BOARD MEMBER ITEMS VIII ADJOURNMENT INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: January 12, 2000 ITEM TITLE: Transmittal of Treasury Report for November, 1999 BACKGROUND: Attached please find the Treasury Report for November, 1999. RECOMMENDATION: Review, Receive and File the Treasury Report for November, 1999. John M. Falcon4r, Finance Director T a 0 4hf 4 4 Q" MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for November 30, 1999 DATE: January 4, 2000 Attached is the Treasurer's Report for the month ending November 30, 1999. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Dept. The following table summarizes the changes in investment types for the month: Investment Beginning Purchased Sold/Matured Other Endin Change Cash (1) LAIF US Treasuries (2) US Gov't Agencies (2) Commercial Paper Mutual Funds Total $1,1411418 11,189,999 14,052,692 17,628,448 0 9,020,698 $53 033 255 0 11,030,324 0 0 0 $11 030 324 0 300,000 7,000,000 0 0 3,896,469 $11 196,469 ($544,839) (15,037) 42,138 $517 738 596,579 10,889,999 18,067,979 17,670,586 0 5,124,229 $52 349 372 ($544,839) (300,000) 4,015,287 42,138 0 (3,896,469) $683 883) I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and ins in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. the City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. Join M. Falconef `" Fi ance Director reasurer j S 200 0 Dale Footnote (1) The amount reported in the other column represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the month on US Treasury and Agency investments. 06'�'�'. 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X> d cD IL E .� V 0� O CL `a. c C O c Of Ci c .0 (D H C C � W N d (D cn C .O 4) C tN f�9 d d O C O ._+ --cm Q C L U d m O yL d�c)0W X (9 N wcow0U 0 1- d IZ, U C W IZ O O (O 0 O O N C) O � 00 N t() — v 00 co 0) O ti O O O tC) Lo cM M tj to L O L6 O N O O O O r � co (oC Cl CO MvO ti M CNO NI Ip 't m CD M O Co N 00� M� O CV)M ;1 L OO O N C 1- m C14 O O M 1� CO O N � N N 0 O N c) O M r� N C') M tj V N W) tt O co ti "It r- CA V O O O N O N M N c) ccI e- V CITY OF LA QUINTA CITY CITY RDA RDA FA BALANCE SHEET 11130/99 FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL ASSETS: POOLED CASH 3,868,088.28 6,070,262.13 (994.24) 9,937,356.17 LQRP INVESTMENT IN POOLED CASH 705,000.00 705,000.00 INVESTMENT T-BILLINOTES & OTHER 26,000,000.00 26,000,000.00 AUTO MALL CASH 781,556.49 781.556.49 LQRP CASH 61,665.48 61,665.48 BOND REDEMPTION CASH 396,111.90 28.73 396.140.63 BOND RESERVE CASH BOND PROJECT CASH 14,088,544.14 590.543.79 14,679,087.93 BOND ESCROW CASH PETTY CASH 1,000.00 1,000.00 CASH & INVESTMENT TOTAL 30,650,644.77 21,321,583.65 589,578.28 52,561,806.70 INVESTMENT IN LAND HELD FOR RESALE AC COUNTS RECEIVABLE 47,154.46 60,900.00 8,260,000.00 8,368,054.46 PREMIUM/DISCOUNT ON INVESTMENT (254,217.28) 41,783.03 (212,434.25) LQRP-ACCOUNTS RECEIVABLE 48,760.68 48.760.68 INTEREST RECEIVABLE 1,373.63 1,373.63 LOAN/NOTES RECEIVABLE 25,841.74 2,668,850.80 2,694,692.54 DUE FROM OTHER AGENCIES 127,984.00 127,964.00 DUE FROM OTHER GOVERNMENTS DUE FROM OTHER FUNDS 785,357.14 741,656.90 1,527,014.04 DUE FROM RDA 6,890,277.20 6,890,277.20 INTEREST ADVANCE -DUE FROM RDA 1,384,175.34 1,384,175.34 ADVANCES TO OTHER FUNDS 434,951.70 434,951.70 NSF CHECKS RECEIVABLE 1,966.86 1.966.86 ACCRUED REVENUE 833.40 83140 TRAVEL ADVANCES 1,860.00 1,860.00 EMPLOYEE ADVANCES PREPAID EXPENSES 60,300.00 -_ - 60,3_00.00 RECEIVABLE TOTAL 9,507,024.79 3,562,784.81 _ 8,260,000.00 21,329,809.60 WORKER COMPENSATION DEPOSIT 37,637.00 37,637.00 RENT DEPOSITS UTILITY DEPOSITS 75.00 75.00 MISC. DEPOSITS 2,100.00 2,100.00 DEPOSITS TOTAL 39,812.00 39.812.00 GENERAL FIXED ASSETS 1,289,694.28 15,146,522.00 10,233,506.05 26,669,722.33 ACCUMULATED DEPRECIATION (585,360.27) (585,360.27) AMOUNT AVAILABLE TO RETIRE L/T DEBT 3,395,117.03 3,395,117.03 AMOUNT TO BE PROVIDED FOR L/T DEBT 1,677,482.02 94,828,721.06 8,260,000.00 104,766,203.08 TOTAL OTHER ASSETS 704.334.01 15,146,522.00 1,677,482.02 10,233,506.05 98,223,838.09 _- _ - 8,260,000.00 134,245,682.17 TOTAL ASSETS 40 901 815.57 15 148 522.00 1,677,482.02 24,884,368.46 10,233,506.05 98.223.838.09 8.849.578.28 8,260,000.00 2.08 177 110.47 LIABILITY ACCOUNTS PAYABLE 7.660.84 11,999.44 19,660.28 DUE TO OTHER AGENCIES 522,190.29 522,190.29 DUE TO OTHER FUNDS 575.00 1,517,134.04 9,305.00 1,527,014.04 INTEREST ADVANCE -DUE TO CITY ACCRUED EXPENSES PAYROLL LIABILITIES 61,701.81 61,701.81 STRONG MOTION INSTRUMENTS 4,651.65 4.651.65 FRINGE TOED LIZARD FEES 21.740.00 21,740.00 SUSPENSE 129,128.81 129,128.81 DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL 747,648.40 11,999.44 1,517,134.04 9,305.00 2.286.086.88 ENGINEERING TRUST DEPOSITS 198.00 198.00 SO. COAST AIR QUALITY DEPOSITS ARTS IN PUBLIC PLACES DEPOSITS 423,107.00 423.107.00 LQRP DEPOSITS 15.364.00 15,364.00 DEVELOPER DEPOSITS 1,130,464.59 1,130,464.59 MISC. DEPOSITS 329,760.95 329,760.95 AGENCY FUND DEPOSITS 800,668.11 800,668.11 TOTAL DEPOSITS 2,684,198.65 15,364.00 2,699,562.65 DEFERRED REVENUE 8.270.67 8,260,000.00 8,268,270.67 OTHER LIABILITIES TOTAL 8,270.67 8,260,000.00 8,268,270.67 COMPENSATED ABSENCES PAYABLE 337,880.86 337,880.86 DUE TO THE CITY OF LA QUINTA 1,327,801.72 8,274,452.34 9,602,054.06 QUE TO COUNTY OF RIVERSIDE 12,466,237.00 12,466,237.00 DUE TO C.V. UNIFIED SCHOOL DIST. 10,068,148.75 10,068,148.75 DUE TO DESERT SANDS SCHOOL DIST. BONDS PAYABLE _ 87,415,000.00 _ (5504.06) 8,260,000.00 75,674,495,9_2 TOTAL LONG TERM DEBT 1,665,482.58 98,223,838.09 (504.08) 8,260,000.00 108,148,816.59 TOTAL LIABILITY 3,440,117.72 1,677,482.02 1,532,498.04 98,223,838.09 8,268,800.92 8,260,000.00 121,402,736 79 EQUITY -FUND BALANCE 37,461,697.85 15,146,522.00 23,351,870.42 10,233,506.05 580,777.36 86,774,373.68 TOTAL LIABILITY & EQUITY 40,901,815.57 15,146,522.00 1,677,482.02 24,8 44.368.46 . 10,233,506.05 98,223,838.09 8,849,578.28 8.260 000.00 . 208 177,110.47 (0.00) (0.00) (0.00) -- --- _ - - -- _ _- -_ -- CASH & INVESTMENT%TOTAL 62,661,806.70 PREMIUMIDISCOUNT ON INVESTMENT (212,434.251 TOTAL 52,349,372.45 00�9 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: January 12, 2000 ITEM TITLE: City of La Quinta Fiscal Year 1998-99 Audited Financial Statement BACKGROUND: Mr. Ken AI -Imam, Audit partner with Conrad & Associates will review the City Cash and Investments presented in the report and answer Board Members questions RECOMMENDATION: Information item only. hn M. Falconer, Finance Director CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 1999 Prepared by FINANCE DEPARTMENT JOHN M. FALCONER Director of Finance CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1999 TABLE OF CONTENTS Paize INTRODUCTORY SECTION Letter of Transmittal i List of Principal Officials xix Organizational Chart xx Certificate of Award for Outstanding Financial Reporting (CSMFO) xxi Certificate of Achievement for Excellence in Financial Reporting (GFOA) xxii FINANCIAL SECTION Independent Auditors' Report 1 General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 8 Statement of Revenues, Expenses and Changes in Retained Earnings - Internal Service Fund 10 Statement of Cash Flows - Internal Service Fund 11 Notes to the Financial Statements 12 Required Supplementary Information 42 Supplemental Data: General Fund: Statement of Expenditures - Budget and Actual 45 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1999 TABLE OF CONTENTS, (CONTINUED) 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 Federal Assistance Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ISTEA Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscape Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Law Enforcement Block Grant (SLEBG): 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 Page 48 c 52 53 MAJ 55 56 57 58 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1999 TABLE OF CONTENTS, (CONTINUED) Paize Public Safety Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 59 Village Parking Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 60 South Coast Air Quality Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 61 Local Law Enforcement Block Grant (LLEBG): Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 62 Low/Moderate Income Housing Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 63 Low/Moderate Income Housing Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 64 Low/Moderate Bond - Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 65 Low/Moderate Bond - Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 66 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1999 TABLE OF CONTENTS, (CONTINUED) Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Infrastructure Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Page 68 71 72 74 76 11:1 79 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1999 TABLE OF CONTENTS, (CONTINUED) Page Assessment District 97-1 La Quinta Norte Construction Fund: _ Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 80 Financing Authority Capital Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 81 Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes _ in Fund Balances - Budget and Actual 82 Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 83 Agency Funds: Combining Balance Sheet - All Agency Funds 86 Combining Statement of Changes in Assets and Liabilities - All Agency Funds 88 General Fixed Assets Account Group: _ Comparative Schedule of General Fixed Assets - By Source 92 Schedule of General Fixed Assets - By Function and Activity 93 -- Schedule of Changes in General Fixed Assets - by Function and Activity 94 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1999 TABLE OF CONTENTS, (CONTINUED) Table No. Page STATISTICAL SECTION General Fund Expenditures by Function 1 96 General Fund Revenue by Source 2 97 Property Tax Levies and Collections 3 98 Schedule of Net Taxable Value 4 99 Property Tax Rates - Direct and Overlapping Governments 5 100 Special Assessment Billings and Collections 6 101 Schedule of Direct and Overlapping Bonded Debt 7 102 Computation of Legal Debt Margin 8 103 Revenue Bond Coverage 9 104 Demographic Statistics 10 105 Property Value, Construction Activity, and Bank Deposits 11 106 Principal Taxpayers 12 107 Major Employers 13 108 Schedule of Insurance in Force 14 109 Miscellaneous Statistical Data 15 110 P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 December 1, 1999 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California (760) 777-7000 (TDD) (760) 777-1227 FY 1998 99 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL We are pleased to present the 1999 Comprehensive Annual Financial Report ( CAFR) of the City of La. Quinta to the City Council and the City Manager. This report includes financial statements of the: City of La Quinta; La Quinta Redevelopment Agency; and, La Quinta Financing Authority. Our independent auditors, Conrad & Associates have expressed their opinion as to the fairness of these financial statements. The completion of the independent audit is an important part of the total financial management program for the City of La Quinta. The information found in this report is provided by management to the Council and the public to assist those interested in understanding the fiscal condition of the City as of June 30, 1999. Responsibility for both the accuracy of the data, its completeness and its fairness of presentation, including all disclosures rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City of La Quinta. All disclosures necessary to enable this reader to gain an understanding of the government's financial activities have been included. Document Structure The CAFR is presented in three sections: Introductory; Financial; and, Statistical. Honorable Mayor, City Council, and City Manager The introductory section includes this transmittal letter, the City's organizational chart, and a list of principal officials. The financial section consists of the general purpose financial statements, including the audit opinion and footnotes, and the combining and individual fund and account group financial statements and schedules. The statistical section includes selected financial and demographic information, generally on a multi -year basis. The following governmental agencies that provide services to the citizens of the City of La Quinta have been excluded from this report because the City does not have financial accountability over these agencies: State of California and its departments, County of Riverside and its departments, Coachella Valley Association of Governments, Riverside County Transportation Commission, Riverside County Waste Management District, Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School District, Desert Community College District, Mosquito Abatement District, and Coachella Valley Water District. The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City motto is "The Gem of the Desert". The City is governed by a five member City Council under the Council/Manager form of government. The Mayor is directly elected by the citizens. The City was originally incorporated in 1982 as a general law City and it became a charter City in November 1996. Significant 10-year demographic data is as follows: • Population as of December 1998 was 21,763 an increase of 94% from 1990; • Retail Sales of $158 million a 357% increase from 1990; • Taxable Sales of $214 million a 220% increase from 1990; • Assessed Valuation over $2.6 billion a 207% increase from 1990; and, • Hotel Room sales over $32.5 million a 69.5% increase from 1990. The City area includes the beautiful La Quinta Hotel, world class golf resorts, numerous single family and multi- dwelling units and light commercial industries. The City has a modern 10,000 sq f1 Senior Center for City residents. The Desert Sands Unified School District provides educational opportunities for school -age children in La Quinta. The City has .been experiencing rapid growth in population making it one of the fastest growing Cities in California. With this growth comes a demand on local government to meet the needs of its citizens. For the year ending June 30, 1999, the City of La Quinta posted a gain in sales tax revenue of 39.67% over the previous year. The total number of full time authorized positions for 1998-99 is 72. In addition to the 21,763 permanent residents approximately 11,368 seasonal residents spend three to six months in the City. ii Honorable Mayor, City Council, and City Manager Services Provided by the City City services can be divided into those services provided directly by City staff and those services contracted out or provided by other government agencies and organizations. Direct services provided by City staff in the following areas include: General Government - Legislative - City Manager - Economic Development - Personnel Finance - Fiscal Services - Central Services Building and Safety - Administration — - Code Compliance - Animal Control - Building - Emergency Services - Fire - Civic Center Building Public Works - Administration - Development/Traffic - Street & Landscape Maintenance - Capital Projects City Clerk - City Clerk Community Services - Administration - Recreation - Senior Center Community Devel_o m n - Administration - Planning - South Coast Air Quality - Redevelopment Services are also provided to the City and its citizens by contract and by the direct services of other government agencies and organizations. These services include police and fire protection through the County of Riverside, library services through the County of Riverside, visitor & tourist information through Palm Springs Desert Resorts Convention and Visitors Bureau, and the La Quinta Chamber of Commerce, water service through the Coachella Valley Water District, electricity service through the Imperial Irrigation District, refuse collection through Waste Management, public transit through Sunline Transit Agency, and cable service through Media One. iii Honorable Mayor, City Council, and City Manager During 1998-99 the City experienced many significant events and accomplishments that may not be readily evident from a review of the financial statements. Some of the more important of these items are: Single family construction accounted for $225 million in building permits while commercial construction accounted for $10 million. A 4,700 square foot International House of Pancakes was built in the Home Depot retail center. The development of numerous residential communities including PGA West, Rancho La Quinta and the Traditions has increased the assessed valuation in the City. As mentioned earlier, the City's assessed valuation has increased 207% from 1990 to over $2.6 billion, with an increase of $365 million during the latest year. La Quinta has housing that ranges from the affordable to luxury estates. The median home prices in La Quinta have been relatively stable and are significantly lower than other areas of the Coachella Valley mostly due to the reasonably priced land values. The U.S. Census has established the median home price at $117,400 which is lower than Riverside, San Diego, Los Angeles Counties and the State of California. There were 870 housing units built during 1998 which brings to 13,499 the number of total units within the City. The 13,499 units consist of 12,555 single family residences, 697 multi family residences, and 247 mobile homes. La Quinta is home to several of the world's highest rated golf courses. During FY 1998-99, major golf tournaments hosted in La Quinta included the prestigious Bob Hope Chrysler Classic, the Skins Game, and the Raymond Floyd hosted charity golf event. The nationally recognized La Quinta Arts Festival attracts many visitors from around the country each year to the City of La Quinta and the Coachella Valley. The La Quinta Resort and Club, the second largest destination resort in the Coachella Valley, continues to record dramatic growth in hotel revenues. lv Honorable Mayor, City Council, and City Manager The City increased funding for the Palm Springs Desert Resort Convention & Visitors Bureau for tourism promotion and provided funding for the Airline Services Council to continue airline marketing efforts for the Coachella Valley. Coital Improvements The City completed over $6.7 million dollars of Capital Improvements in FY 98/99. Major expenditures were made on the Catellus Moderate Single Family and Senior Housing Project at Ave 48`h and Jefferson, the Miles/Washington Widening Project, the Washington Street Bridge Widening Project at Avenue 50, the traffic signal at Highway 111 and Plaza La Quinta, and public improvements at the Centre at La Quinta Auto Mall site. Preliminary design work was completed on the Jefferson Street widening project between Highway 111 and Avenue 54, two City entrance monuments and the Civic Center expansion. Next year, the City's Capital Improvement Project (CIP) program will increase over $8.8 million bringing the 1999-00 City CIP program to $52.8 million. The major commitment in the infrastructure will provide for both the current and future growth that the City has experienced. The City completed improvements for covered parking and an emergency generator at the Senior Center, continued to fund the Washington I-10 interchange project through the Coachella Valley Association of Governments (CVAG) and participated in a multi jurisdiction project to rebuild the Miles Avenue crossing at the Whitewater River. The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta during 1998-99: Implementation of an Economic Development Strategy Plan; Implementation of an Economic Development Marketing Plan; Received several grant awards for public safety, bicycle lanes, urban forestry; — Received awards in excellence for financial and budget reports; Started the General Plan Updates. Future develop include, continued commercial development along the Highway 111 corridor, redevelopment financed property developments and completion of residential projects in the northern part of the City. Honorable Mayor, City Council, and City Manager Management of the City of La Quinta is responsible for establishing and maintaining a framework of internal controls designed to ensure that assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The framework of internal controls is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit - As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate framework of internal controls is in place to ensure compliance with applicable laws and regulations related to those programs. The framework of internal controls is subject to periodic evaluation by management. As a part of the City's single audit, tests are made to determine the adequacy of the framework of internal controls, including that portion relating to Federal assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the government's single audit for the fiscal year ended June 30, 1999 provided no instances. of material weaknesses in the framework of internal controls or significant violations of applicable laws and regulations. Accounting Controls - The City of La Quinta's accounting system is designed upon the following principles: In the public sector, a city government maintains a variety of "funds" that provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with a complete set of self -balancing accounting records. Each fund has been established because of some restriction on the use of the resources received by that fund. In the private sector, a corporation may have many subsidiaries which make up the parent corporation. Likewise in the public sector, all of the funds make up the complete financial resources of the City of La Quinta. This report includes the transactions of all entities over which the City Council of the City of La Quinta has authority (as defined by the Governmental Accounting Standards Board). The City's accounting system operates on a modified accrual basis of accounting for all governmental and agency type funds. Governmental funds include the General, Special Revenue, Debt Service, and Capital Projects Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period. Expenditures, other than interest or long term debt, are recorded when liabilities are incurred. The City maintains one Internal Service Fund and no Enterprise Funds. These types of funds use the accrual basis of accounting. Revenues are recorded when earned and expenses when incurred. vi Honorable Mayor, City Council, and City Manager In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the cost/benefit of the controls imposed. The cost of a control should not be excessive to its derived benefit as viewed by. City management. The internal controls in existence at the City of La Quinta are sufficient to ensure, in all material respects, both the safety of the City's assets and the accuracy of the financial record keeping system. The City Manager submits a preliminary budget to the City Council before each fiscal year. Public hearings are then held prior to July 1 to receive public comment. A budget is required to be adopted before the beginning of the fiscal year. Amendments to the budget or budget transfers between funds require Council approval. Budget transfers within funds require City Manager approval. The City also maintains an encumbrance system as one budget technique. All fiscal year end appropriations and encumbrances lapse at year end unless specifically approved by the Council for inclusion in the following years' appropriations. Each Department receives a monthly budget -to -actual expenditure report. In addition, each department can access on-line budgetary data from the financial information system available throughout the City-wide computer network. The City Council is also given an Executive level Summary of Revenues and Expenditures on a monthly basis. In 1979, Proposition 4, the "Gann" initiative, was passed by the voters of California. The purpose of this law was to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. This limit is increased each year through a formula that takes into consideration changes in the Consumer Price Index and state per -capita income. If a city reaches this limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be defined at that time. The Gann Limit for the City of La Quinta has increased steadily since 1979 and still provides the City with a comfortable operating margin. In 1991-92, State law allowed the recalculation of the City's limit with new inflation factors. Using population growth in the City and growth in State per capita income, the Gann spending limit was increased to $28.02 million for Fiscal Year 1998-99. Appropriations of "proceeds of taxes" was $8.22 million for a margin of $19.8 million. vii Honorable Mayor, City Council, and City Manager The following schedules present a summary of the General Fund, special revenue funds, debt service funds, Capital project funds and expenditures for 1998-99 and the amount and percentage of increases and decreases in relation to prior year revenues. Revenue from All Governmental Fund Tunes 98-99 over % Fund Type 1998-99 1997-98 (under) 97-98 Change General Fund $15,870,489 $115808,235 $4,062,254 34.4% Special Revenue Funds 7,279,078 6,543,379 735,699 11.2% Debt Service Funds 155267,586 1300,628 1,406,958 10.2% Capital Project Funds 72498,334 4,670,155 25828,179 60.6% Total $45,915,487 136,882,397 19,033,088 24.5% Fund Type General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Total 1998-99 1997-98 98-99 over % (under) 97-98 Change $ 9,847,000 $8,327,740 1,519,260 18.2% 3,874,525 3,951,583 <77,058> <2.0>% 17,40408 16,458,977 945,911 5.7% 8,125,252 8,240,765 <115,513> <1.4>% $39,417,002 $37,139,116 2,277,886 6.1 % For all governmental fund types, the increased revenue is reflective of retail sales growth and increases in permit fees in the General Fund, increased Capital Project Fund activity, and increased tax increment revenue in the Debt Service Fund. Expenditures in all areas of the General Fund increased by a combined amount of 18.2%, with Capital Project fund expenditures decreasing by 1.4%. . Honorable Mayor, City Council, and City Manager The City's General Fund is used to record all revenue and expenditures not specifically restricted by law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy tax, licenses and permits, motor vehicle license fees and interest. Categories of expenditures include police services, public works, Community Development Community Services and administrative functions. The following two tables summarize actual General Fund revenues and expenditures for 1998-99 and 1997-98: Source Taxes Licenses and permits Charges for services Intergovernmental Interest Litigated Settlements Miscellaneous Total 1998-99 1997-98 $ 8,101,191 1,951,981 1,965,219 1,466,788 1,569,796 740,985 74,529 $15,870,489 $6,764,355 1,144,564 19228,269 1,110,553 1,164,145 281,382 114,969 $1108,237 ix 98-99 over (under) 97-98 $1,336,836 807,417 736,950 356,235 405,651 4599603 <40,440> $4,062,252 Change 19.8% 70.5% 60.0% 32.1% 34.8% 163.3% <I5.2>% 34.4% Honorable Mayor, City Council, and City Manager The total 1998-99 General Fund revenue increased by 34.4% over FY 1997-98. The 19.8% increase in Tax revenue consisted of increased Transit Occupancy Tax, property tax and sales tax stemming from increased construction activity and population growth. The 70.5% increase in Licenses and Permit revenue consisted of payments related to residential and commercial building activities. The 60% increase in Charges for Service revenue consisted of Community Development and Public Works fees related to commercial and residential building activities. Intergovernmental revenue increased by 32.1 % from increases in motor vehicle taxes, and County library funding. The increase in Interest of 34.8% consisted of larger fund balances available for investment. Litigated Settlements revenue increased by 163.3% consisting of a final settlement received from a defendant in a legal matter. Expenditure Type General Government Public Safety Community Services Planning & Development Public Works Total 1998-99 1997-98 $2,473,241 4,468,294 732,741 626,074 $2,229,389 4,099,523 494,402 345,054 98-99 over (under) 97-98 243,852 368,771 238,339 281,020 1,546,650 19159,372 387,278 $9,847,000 $8,327,740 1,519,260 Change 10.9% 9.0% 48.2% 81.4% 33.4% 18.2% The general government expenditure increase of 10.9% consisted mainly of the City's commitment to economic development efforts. Public Safety expenditures increased 9% consisting of cost of living adjustments to the County Sheriffs contract. Community Services costs increased by 48.2% due to budgeting certain grant. related services previously paid out of General Government departments and increased services which would be partially offset by program revenues. Planning and Development expenditures increased due to increased consultant costs for the General Plan. Public Works expenditures increased due to additional traffic and landscape maintenance, and construction management efforts. x Honorable Mayor, City Council, and City Manager The City's Special Revenue Funds, which account for the collection and use of special or restricted revenues, received $7.3 million in total revenue in FY 1998-99. This as a increase of 11.2%. The Special Revenue Fund expenditures were $3.8 million, a decrease of 2%. The following two tables summarize Special Revenue Funds revenues and expenditures for 1998-99 and 1997-98: Source Taxes Developer fees Intergovernmental Interest Special assessments Rental Income Gain <Loss> on Land Sale Total 1998-99 $3,592,472 650,735 596,177 1,070,240 759,273 414,236 195,945 $7.279,078 1997-98 $3,253,847 1789713 1,20%519 728,523 80%041 395,414 <22,678> $6,543,379 98-99 over (under) 97-98 $ 338,625 472,022 <604,342> 978,717 <49,768> 18,822 218,623 Change 10.4% 264.1 % <50.3>% 46.9% <6.2>% 4.8% 964.0% $735.699 11.2% Taxes increased 10.4% from increased construction activity in Redevelopment Project Area No. 1 and 2 which will be used for low and moderate income housing purposes. Developer fees increased 264.1 % as a result of a contribution for the Avenue 48`h road improvements. Intergovernmental revenue decreased 50.3% due to decreases in Federal Assistance and ISTEA funding for construction projects for FY 1998- 99. Interest income increased 46.9% due to larger cash balances to invest. Proceeds from land sale increased 964.% from the sale of Redevelopment Agency property. S12ecial Revenue Funds - Exnen i res 98-99 over % Expenditure Type 1998-99 1997-98 (under) 97-98 Change Public Safety $ 0 $ 33,388 $ <33,388> <100.0>% Planning & Development 2,704,025 2,729,873 <25,848> <.9>% Public Works 1,170,500 1,188,322 <17,822> <1.5>% Total $3,874,525 $3,951,583 $<77,058> <2.0> No significant changes in Special Revenue expenditures between FY 1998-99 and FY 1997-98 were noted. X1 Honorable Mayor, City Council, and City Manager The City's Debt Service Funds are used to record the payment of interest and principal on the current portion of outstanding debt. The following two tables summarize Debt Service Funds revenues and expenditures for 1998-99 and 1997- 98: Source Taxes Interest Rental Income Total 1998-99 1997-98 $14,369,887 $13,015,387 213,126 110,618 684,573 734,623 $15,267,586 $1398609628 98-99 over (under) 97-98 $ 1,354,500 1029508 <50,050> $19406,958 Change 10.4% 92.7% <F R>% 10.2% The Tax revenues increase of 10.4% reflects increased building activities and lower than expected property value reassessment appeals. Interest income increased 92.7% due to increased cash balances to invest. Rental income decreased by 6.8% to pay for the FY 1998-99 Financing Authority debt service payments. Expenditure Type Planning & Development Debt Service Total 1998-99 1997-98 $ 270,566 17,134,322 $1754045888 $209,588 16,24%389 $16,45 8,977 98-99 over (under) 97-98 $ 60,978 8849933 $945,911 Change 29.1 % 5.40/, 5 .7% The increase of 29.1 % in Planning & Development is a result of higher contract administrative service fees in the Redevelopment Agency debt service fund. The Debt Service expenditure increase of 5.4% reflects higher scheduled tax increment pass through payments in the Redevelopment Agency. xii Honorable Mayor, City Council, and City Manager Capital Project Funds Capital Project Funds are used to record the receipt and disbursement of monies that are restricted for the acquisition and construction of capital facilities. The following two tables summarize Capital Project Funds revenues and expenditures for 1998-99 and 1997-98: Capital Project Finds - Revenue 98-99 over % _ Source 1998-99 1997-98 (under) 97-98 Change Developer fees $496631,006 $29961,792 $19701,214 57.4% Intergovernmental 1,133,477 19167,522 <349045> <2.9>% -- Interest 8419769 5409637 301,132 55.7% Special Assessments 38,493 0 389493 N/A Litigated Settlements 821,589 204 8213,385 402,639.7% Total $7,498,334 $49670,155 $2,828,179 60.6% Developer fees increased by 57.4% due to increased building activities. Interest income increased 55.7% as a result of increased cash balances. Litigated settlements increased as a result of a final settlement received from a defendant in a legal matter. Xlll Honorable Mayor, City Council, and City Manager Expenditure Type Planning & Development Capital Outlay Total Capital Project Funds - Expenditures 1998-99 1997-98 $ 1,147,357 $651,832 6,977,895 79588,933 $8,125,252 $8,240,765 98-99 over % (under) 97-98 Change $ 495,525 <611,038> 76.0% <8.1>% $<115,513> <1.4>% Planning and Development expenditures increased 76.0% due to payments to a developer for the La Quinta Norte Assessment District. The Capital Outlay line item decreased 8.1 % from FY 1997-98. The City's Internal Service Fund (Equipment Replacement Fund) is used to report the operational cost of maintaining and replacing City vehicles and equipment. Cost allocation charges are recorded as expenditures in General Fund departmental budgets accounts and as revenues in the Equipment Replacement Fund. Charges are based on a schedule that recovers maintenance and depreciation costs. New vehicles and equipment are purchased in the respective General Fund department and then transferred out as contributed capital to the Equipment Replacement Fund at the end of the year. After the original purchase subsequent vehicles and equipment are paid for out of the Equipment Replacement Fund. xiv Honorable Mayor, City Council, and City Manager Equipment Rolacement Fund 98-99 over % Source 1998-99 1997-98 (under) 97-98 Change Operating Revenue Charges for Services $ 338,665 $ 199,731 $ 138,934 69.6% _._ Operating Expense: Cost of Services $ 72,969 $ 60,585 $ 12,384 20.4% Administration 4,010 49626 <616> <13.3>% Depreciation 88,358 94,840 <6,482> <6.8>% Total Operating Expense $ 165,337 $ 160,051 $ 5,286 3.3% --- Operating Income (Loss) $ 173,328 $ 39,680 $ 133,648 336.8% Non -Operating Revenues (Expenses) Interest Total Non -Operating Revenue (Expenses) Net Income (Loss Before Transfers _ Operating Transfers: Operating Transfers In Total Operating Transfers Net Income (Loss) Retained Earnings at Beginning of Year Retained Earnings at End of Year $ 52,560 $ 25,491 $ 279069 106.1% $ 2259888 $ 259491 $ 27,069 106.1% $ 52,560 $ 65,171 $ 160,717 246.6% $ 0 $ 0 $ 0 n/a $ 0 $ 0 $ 0 n/a $ 225,888 $ 65,171 $ 160,717 246.6% $ 573,901 $ 5089730 $ 65,171 12.8% $ 7993789 $ 573,901 $ 225,888 35.9% xv Honorable Mayor, City Council, and City Manager Risk Management The City of La Quinta joined the California Joint Powers Insurance Authority (CJPIA) in 1997. Under a joint exercise of powers agreement between local governments for the purpose of jointly funding programs of insurance under Section 990 of the California Government Code. The Authority is governed by a Board of Directors, which is composed of one director from each member organization which maintains membership in the Liability program. The City of La Quinta joined the CJPIA in order to achieve long-term premium stability. Each member city must remain in the pool for three years. Each year, the self -insured pool undergoes a retrospective deposit computation based on current incurred loss valuations. Appropriate adjustments are then made over a three-year period. 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. Generally, individual claims in excess of the self -insured amount for worker's compensation and general liability fall under the insurance policies purchased by the City. The CJPIA provides for liability insurance coverage with a maximum of $50,000,000 per claim. All reserves are invested and earnings are credited to members in proportion to their equity. At present, the CJPIA has invested reserves in excess of $100,000,000. Based on historical experience, as of June 30,1999, the City's year-end deposit with CJPIA is expected to exceed its liability for claims payable, including incurred but not reported losses, and therefore no liability for claims payable has been recorded in the general long-term debt account group. Note 21 in the Notes to the Financial Statements explains in detail the financing of the City's retirement program. Significant financial information has been disclosed in the notes in order to comply with GASB Statement Number 27. Based upon the latest information, the total over funded benefit obligation applicable to the employees of the City at June 30, 1997 was $813,152 up $472,910 from an over funded pension benefit obligation of $340,242 as of June 30, 1996. Employer contribution rates are reviewed and adjusted annually to achieve full funding for retirement benefits by the year 2011. Debt Administration At year end, the City of La Quinta had a number of debt issues outstanding. The City had outstanding one lease bond issue and four tax allocation bond issues the total debt service of $148.6 million. During the year the City has reduced the debt service on these issues by $5.7 million to $142.9 million. The City has met all debt service payments and is not aware of deficiencies in the terms of its bond covenants. Cash Management The City Council annually adopts an investment policy that is intended to provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds. During the 1998-99 Fiscal Year, idle funds were deposited in accordance with this policy in demand deposits, medium -term notes, treasury and agency notes, treasury money market funds, and a pooled investment administered by the State of California. At all times, there was compliance with the City's investment policy, and safety and liquidity objectives were placed above rates of return considerations in making deposits and investments. xvi Honorable Mayor, City Council, and City Manager The City Treasurer is charged with the responsibility of safeguarding the City's assets, receiving all payments due the City and investing all inactive funds. During the year the City earned nearly $3.7 million in interest on investments in all fund types, compared to earnings of $2.54 million during 1997-98. Funds are invested in various types of instruments as shown below. The increased earnings on pooled cash investments reflects larger cash balances from the previous year. At June 30, 1999, the Treasurer had 100% of all available funds invested. The City's total portfolio at year end was $ 57,550,514. Below is a summary of cash and investments outstanding as of June 30, 1999: Form of Cash and Investments June 0. 19_9_9 Demand Deposits $ 11184,222 U.S. Treasury Bills/Notes 1%119,499 U.S. Government Agency Securities 17,990,230 Mutual Funds -First American Treasury 4,903,842 Local Agency Investment Fund 14.352.721 Total $ 52-550,51-4 As required by State law, the City Council has adopted a comprehensive investment policy specifying the type and term of City investments. The policy allows the City Treasurer flexibility without endangering the safety, liquidity or yield of the total. portfolio. S'ertificate of Award for Outstanding Financial Reporting The California Society of Municipal Finance Officers (CSMFO) and the Government Financial Officers Association (GFOA) both present an annual Certificate of Award for Outstanding Financial Reporting. We believe that our current report conforms to their program requirements and we are submitting this report to their organizations for consideration. If received, the Certificates are valid for one year only. The City received the GFOA award for the first year in 1997-98 and the CSMFO award for the previous three years. xvii Honorable Mayor, City Council, and City Manager This report could not have been accomplished without the dedicated services of the Finance Department staff. Recognition is given to Juan Herrera, Accounting Manager, for his efforts in preparing the introductory and financial sections, Geniene Croft, Financial Services Assistant, for her efforts in preparing the statistical section, Debbie DeRenard, Secretary, for her report preparation skills and Sharon Christiansen, Misaela Mendoza, and Pat Parker for their diligence in processing most of the transactions reported upon in the financial section of this report. We also appreciate the City Manager and City Council for providing the resources to prepare this report and for their role in preserving the City's framework of internal controls. We further appreciate the efforts of the Conrad & Associates, CPA's, audit team for their professionalism in conducting the annual audit for the City of La Quinta. Respectfully submitted, 'Ill John M. Falconer . Finance Director and Treasurer xviii City of La Quinta Directory of Officials June 30, 1999 CITY COUNCIL John Pena, Mayor Terry Henderson, Mayor Pro Tern Stanley Sniff, Council Member Don Adolph, Council Member Ronald Perkins, Council Member ADMINISTRATION Thomas P. Genovese, City Manager Mark Weiss, Assistant City Manager John M. Falconer, Finance Director Tom Hartung, Building & Safety Director Jerry Herman, Community Development Director Dawn Honeywell, City Attorney Dodie Horvitz, Community Services Director Saundra L. Juhola, City Clerk Chris Vogt, Public Works Director/City Engineer X1X w y y C O a E a •- CL O O act as m O m c m 4- c m o N M ytiia� m c ffi a) m Co c Co> A E a m y m m Q n �W E _nw a o c O V LJ a Q o '~ td h o a N 4) N 21.0 C UmmQ V CO UU a m O G .` y 4o _ �+ Oi — C: m c �_ 0 V Qi O V m y 0 y y ci c.i y V C Q N V Q C L ev •3 Q Z Ci ` °' Z o2 0 C �U d m m }' d Q 10 C°'1 C aEi �O Q C m L m 00 M CY N C E O y oa4)cm Q Ri J cs v �- p m C LL U. U 'r ~ V a 0 p L. �°, �mc U LLQ m 0 ii. d [ Q U Ll ai y C ` O O a m y C Q m N O' tl! E C N H myz .9C U 0 m c 3 U c c m m y m m m�E o 3 a 0Q a M m y v 0 h o m o Z m E ma uV d t c o P v y�Nm UZgc� o 0 c F O a m C y c E a U m� ytn ) Q v N a y 3 E Q E O U y � p � � C m N � W !9 U c � V W (�U fc0 R ` S o v a m ao o'er O� w O O YI � � m C� cLi Eli f0 � O � U p V b Ul C m ao a ti m � � C C v m c � � D o V �a � Z_•E c� m m io � c o'�tA E � ~ C Q � O c c C U� N a�p � m�� c ` V�'mC�V 9mmmV mm O O O UUU Q U 7� U 'c V U Q y y CO y C C C C a y a a p V a�a � c � c � 'V! � aaaa O N m V �� N C M N� C mc— �t � c C1 o aoO1 � c O� ccg m m '—" mcn c m mw m mwF- awcW °� m m coo � 'C Eaco�cm �C Vp N 90`� 'C N cmico0o m Q � C C C �QU ��Q A m m m m � OtnQ c m m c�co ��m J xxi Certificate of Achievement for Excellence in Financial Reporting Presented to City of La Quinta, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1998 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. �' CE (0) Q� F -A � NRED STATES : H W AND s, C S QUA N s President Executive Director Xxii - CONRADAND ASSOCIATES, L.L.P The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report CERTIFIED PUBLIC ACCOUNTANTS 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92614 (949) 474-2020 Fax (949) 263-5520 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, 1999, as listed in the accompanying 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 and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of La Quinta, California as of June 30, 1999, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. The information regarding the year 2000 issue identified as required supplementary information in the accompanying table of contents is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We did not audit and do not express an opinion on such information. Further, we were unable to apply to this information the procedures prescribed by professional standards because of the difficulty in ascertaining whether the information presented includes a sufficiently complete description of the year 2000 issue as it relates to the reporting government. In addition, we do not provide assurance that the City of La Quinta is or will become year 2000 compliant, that the City of La Quinta's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the City of La Quinta does business are or will become year 2000 compliant. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION The Honorable Mayor and City Council City of La Quinta Page Two 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 and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of La Quinta, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The scope of our audit did not include the supplemental statistical schedules listed in the table of contents and we do not express an opinion on them. In accordance with Government Auditing Standards, we have also issued a report dated August 13, 1999 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. August 13, 1999 F) (This page intentionally left blank) CITY OF LA QUINTA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1999 Governmental Fund Types Special Debt Capital Assets and Other Debits General Revenue Service Projects Assets: Cash and investments (note 2) $ 15,029,867 6,457,004 3,641,336 14,462,268 Cash with fiscal agent (note 2) - 6,110,194 183,975 8,504,138 Accounts receivable 307,358 44,006 504 60,900 Prepaid items 60,300 - - - Interest receivable 172,356 229,099 37,465 124,439 Notes receivable (note 26) - 2,556,508 - 112,343 Due from other funds (note 25) 7851357 - - 91,970 Due from other governments 403,335 19,275 11 - Advances to other funds (note 14) 8,779,446 551,038 - - Deposits 39,812 - - - Property, plant and equipment (note 4) - Other debits: Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total assets and other debits $ 25,577,831 15,967,124 3,863,291 23,356,058 Liabilities, Equity and Other Credits Liabilities: Accounts payable $ 860,632 40,807 4,403 564,041 Accrued expenses 389,972 - - - Compensated absences payable (note 5) - Deferred revenue 8,271 - - - Deposits payable 921,685 54,604 - 899,524 Retentions payable - - - 163,467 Due to other funds (note 25) 77,715 775,981 9,896 13,735 Due to bondholders - _ _ _ Advances from other funds (notes 14) - - 551,038 835,969 Long-term debt (note 5 through 15) - _ _ _ Total liabilities 2,258,275 871,392 565,337 2,476,736 Equity and other credits: Investment in general fixed assets - - - - Contributed capital (note 19) Retained earnings (note 18): Unreserved - - _ _ Fund balances (note 17): Reserved 8,879,558 9,217,740 3,306,726 8,797,275 Unreserved 14,439,998 5,877,992 8,772 12,082,047 Total equity and other credits 23,319,556 15,095,732 3,297,954 20,879,322 Total liabilities, equity and other credits $ 25,577,831 15,967,124 3,863,291 23,356,058 See accompanying notes to financial statements. 4 Proprietary Fiduciary Fund Type Fund Type Account Groups Totals Internal General General (Memorandum Only) Service Agency Fixed Assets Long -Term Debt 1999 1998 9471464 2,214,268 - - 42,752,207 30,661,756 _ - - - 14,798,307 16,684,009 _ 412,768 382,353 _ - - - 60,300 31491 10,135 - - - 573,494 308,906 — _ _ - - 2,668,851 2,528,967 _ - - - 877,327 427,867 _ - - - 4221621 358,258 - 9,330,484 9,461,114 _ - - - 39,812 2,175 7045,334 - 25,380,028 - 26,084,362 27,019,447 - - - 3,306,726 3,306,726 4,286,709 - - - 104,523,619 104,523,619 107,040,025 — 1,661,933 2,214,268 25,380,028 107,830,345 205,850,878 199,165,077 4,625 423 - - 1,474,931 1,219,587 _ _ _ - 389,972 612,675 _ — - - 337,881 337,881 313,620 _ _ _ - 8,271 14,230 - 642,064 - - 2,517,877 1,160,684 _ - - - 1635-467 259,532 — _ - - - 877,327 427,867 - 1,571,781 - - 1,571,781 1,381,509 _ - - 7,943,477 9,330,484 9,461,114 - - - 99,548,987 99,548,987 102,103,038 4,625 2,214,268 - 107,830,345 116,220,978 116,953,856 - - 25,3805,028 - 25,380,028 26,447,453 857,519 - - - 857,519 701,026 — 7995-789 - - - 799,789 573,901 _ _ _ - 30,201,299 32,892,230 _ _ _ - - 32,391,265 21,596,611 1,657,308 - 25,380,028 - 89,62%900 82,211,221 1,661,933 2,214,268 25,3803,028 107,830,345 205,850,878 199,165,077 5 (This page intentionally left blank) CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended June 30,1999 Totals Special Debt Capital (Memorandum Only) General Revenue Service Projects 1999 1998 Revenues: Taxes S 8,101,191 3,592,472 14,369,887 - 26,063,550 23,033,589 Licenses and permits 1,951,981 - - - 1,951,981 1,144,562 Charges for services 1,965,219 - - - 1,965,219 1,228,269 Developer fees - 650,735 - 4,663,006 5,313,741 3,140,505 Intergovernmental 1,466,788 5961?177 - 1,133,477 3,196,442 3,478,594 Investment income 1,569,796 1,070,240 213,126 841,769 3,694,931 2,543,923 Special assessments - 759,273 - 38,493 797,766 809,041 Rental income - 414,236 684,573 - 1,098,809 1,130,037 Gain (loss) on sale of land - 195,945 - - 195,945 (22,678) Litigation settlement proceeds 740,985 - - 821,589 1,562,574 281,586 Miscellaneous 74,529 - - - 74,529 114,969 Total revenues 15,870,489 7,279,078 15,267,586 7,498,334 45,915,487 36,882,397 Expenditures: Current: General government 2,473,241 - - - 2,473,241 2,229,389 Public safety 4,468,294 - - - 4,468,294 4,132,911 Community services 732,741 - - - 732,741 494,402 Planning and development 626,074 2,704,025 270,566 1,147,357 4,748,022 3,936,347 Public works 1,546,650 1,170,500 - - 2,717,150 2,347,694 Capital projects - - - 6,977,895 6,977,895 7,588,933 Debt service: Principal - - 3,405,000 - 3,405,000 1,960,000 Interest - - 5,001,240 - 5,001,240 5,034,169 Payments under pass -through obligations - - 8,728,082 - 82728,082 9,255,220 Total expenditures 9,847,000 3,874,525 17,404,888 8,125,252 39,251,665 36,979,065 Excess (deficiency) of revenues over (under) expenditures 6,023,489 3,4042553 (2,137,302) (626,918) 6,663,822 (96,668) Other financing sources (uses): Operating transfers in 148,422 11,781 1,569,263 6,887,847 8,617,313 12,894,761 Operating transfers out (336,114) (5,181,414) (1,254,118) (1,845,667) (8,617,313) (12,894,761) Proceeds of bonds (net of issuance costs) - - - 705,262 705,262 21,565,688 Payments to refunded bond escrow agent - - - - - (13,430,939) Proceeds of advances - - 833,402 - 833,402 810,006 Total other financing sources (uses) (187,692) (5,169,633) 1,148,547 5,747,442 1,538,664 8,944,755 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 5,835,797 (1,765,080) (988,755) 5,120,524 8,202,486 8,848,087 Fund balances at beginning of year 17,483,759 16,860,812 4,286,709 15,857,561 54,488,841 45,640,754 Residual equity transfers - - - (98,763) (98,763) - Fund balances at end of year S 23,319,556 15,095,732 3,297,954 202879,322 62,592,564 54,488,841 See accompanying notes to financial statements. 7 CITY OF LA QU NTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types Year ended June 30,1999 Revenues: Taxes Licenses and permits Charges for services Developer fees Intergovernmental Investment income Special assessments Rental income Gain (loss) on sale of land Litigation settlement proceeds Miscellaneous Total revenues Expenditures: Current: General government Public safety Community services Planning and development Public works Capital projects Debt service: Principal Interest Payments under pass -through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance costs) Proceeds of advances Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Residual equity transfers Fund balances at end of year General Fund Variance Favorable/ Budget Actual (Unfavorable) $ 6,335,800 8,101,191 1,765,391 760,700 1,951,981 1,191,281 754,300 1,965,219 1,210,919 1,090,225 1,466,788 376,563 1,123,600 1,569,796 446,196 - 740,985 740,985 44,600 74,529 29,929 10,109,225 15,870,489 5,761,264 2,719,885 2,473,241 246,644 4.1759,081 4,468,294 290,787 780,231 732,741 47,490 950,093 626,074 324,019 1,543,645 1,546,650 (3,005) 1V,/�L,7JJ 7,a4/,UUV 7V7,7J� (643,710) 6,023,489 6,667,199 222,069 148,422 (73,647) (1,405,943) (336,114) 1,069,829 (1,183,874) (187,692) 996,182 (1,827,584) 5,835,797 7,663,381 17,483,759 17,483,759 17,483,759 $ 15,656,175 23,319,556 25,147,140 See accompanying notes to financial statements. 8 Special Revenue Funds Debt Service Funds Capital Projects Funds Variance Variance Variance Favorable/ Favorable/ Favorable/ - Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) 3,429,250 3,592,472 163,222 13,716,999 14,369,887 652,888 - - - 20,000 650,735 630,735 - - - 2,076,889 4,663,006 2,586,117 832,162 596,177 (235,985) - - - 8,167,869 1,133,477 (7,034,392) - 437,500 1,070,240 632,740 12,400 213,126 200,726 405,500 841,769 436,269 796,600 759,273 (37,327) - - - 38,500 38,493 (7) 341,000 414,236 73,236 672,173 684,573 12,400 - - - 150,000 195,945 45,945 - - - - - - - - - - - - - - 821,589 821,589 - - - 5,600 - (5,600) - - - 6,006,512 7,279,078 1,272,566 14,407,172 15,267,586 860,414 10,688,758 7,498,334 (3,190,424) 3,515,223 2,704,025 811,198 285,950 270,566 15,384 2,873,836 1,147,357 1,726,479 1,170,500 1,170,500 - - - - - - - - - - - - - - 36,352,632 6,977,895 29,374,737 - - - 3,405,000 3,405,000 - - - - - - - 5,001,240 5,001,240 - - - - - - - - 8,675,938 8,728,082 (52,144) - - - 4,685,723 3,874,525 811,198 17,368,128 17,404,888 (36,760) 39,226,468 8,125,252 31,101,216 - 1,320,789 3,404,553 2,083,764 (2,960,956) (2,137,302) 823,654 (28,537,710) (626,918) 27,910,792 11,206 11,781 575 2,077,475 1,569,263 (508,212) 28,223,097 6,887,847 (21,335,250) - (12,420,053) (5,181,414) 7,238,639 (1,254,118) (1,254,118) - (12,647,045) (1,845,667) 10,801,378 _ _ 745,000 705,262 (39,738) - - - 833,402 833,402 - - - - - (12,408,847) (5,169,633) 7,239,214 1,656,759 1,148,547 (508,212) 16,321,052 5,747,442 (10,573,610) - (11,088,058) (1,765,080) 9,322,978 (1,304,197) (988,755) 315,442 (12,216,658) 5,120,524 17,337,182 16,860,812 16,860,812 - 4,286,709 4,286,709 - 15,857,561 15,857,561 - _ _ _ _ _ - - (98,763) (98,763) J 5,772,754 15,095,732 9,322,978 2,982,512 3,297,954 315,442 3,640,903 20,879,322 17,238,419 9 CITY OF LA QUINTA Statement of Revenues, Expenses and Changes in Retained Earnings - Internal Service Fund Year ended June 3 0, 1999 1999 1998 Operating revenues: Charges for services $ 338,665 199,731 Operating expenses: Fuel and oil 26,924 271189 Maintenance and parts 461045 33,396 Administration 4, 010 4, 626 Depreciation 88,358 94,840 Total operating expenses 1651,337 160,051 Operating income (loss) 1731328 39,680 Non -operating revenues (expenses): Investment income 52,560 25,491 Total nonoperating revenues 52,560 25,491 Net income (loss) 225,888 65,171 Retained earnings at beginning of year 573,901 5087730 Retained earnings at end of year $ 799,789 573,901 See accompanying notes to financial statements. 10 CITY OF LA QUINTA Statement of Cash Flows - Internal Service Fund Year ended June 30, 1999 Cash flows from operating activities: Cash received from other departments Casb, payments to suppliers for goods and services Net cash provided by (used for) operating activities Cash flows from capital and related activities: Purchase of fixed assets Net cash provided by (used for) capital and related activities Cash flows from investing activities: Interest received on investments Net cash provided by (used for) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Adjustments: Change in accounts payable Net cash provided by (used for) operating activities Noncash capital, financing and investing activities: Fixed assets contributed by other funds 1999 1998 $ 338,665 199,731 78,319 66,366 260,346 1337365 (64,602)(64,6M)- 421425 25,491 42,425 25,491 238,169 158,856 709,295 550,439 $ 947,464 709,295 See accompanying notes to financial statements. $ 173,328 39,680 88,358 1,340 $ 260,346 94, 840 1,155 133,365 $ 1567493 72,306 CITY OF LA QUINTA i Notes to the Financial Statements Year ended June 30, 1999 J 1) Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta ("the City") was incorporated May 1, 1982 under the -general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council - Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. Approximately 30% of General Fund revenues are derived from the transient occupancy tax generated by the La Quinta Hotel, a prominent resort in the region. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. 12 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) The following organizations are considered to be component units of the City: La Ouinta Redevelopment Aizenc The La Quinta Redevelopment Agency (Agency) has established two redevelopment project areas pursuant to the State of California Health & Safety Code, Section 33000 entitled "Community Redevelopment Law". On November 29, 1983 and May 16, 1989, the City Council approved and adopted the Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These plans provide for the elimination of blight and deterioration which was found to exist in the project areas. Although the Agency _ is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Separate financial statements of the Agency can be obtained at City Hall. City of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991 between the City of La Quinta and the La Quinta Redevelopment Agency. The purpose of the Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although the Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Authority. Separate financial statements of the Authority can be obtained at City Hall. (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. 13 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) The accounting records of the City are organized on the basis of funds and account groups classified for reporting purposes as follows: GOVERNMENTAL FUNDS General Fund The primary fund of the City is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, Building and Safety, and Community Services. Special Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law or administrative action for specific purposes. Debt Service Funds The Debt Service Funds are used to account for resources set aside for repayment of general long-term debt. Capital Projects Funds Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. PROPRIETARY FUNDS Internal Service Fund The Internal Service Fund is used to finance and account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The Equipment Replacement Fund is the only internal service fund in the City. It is used to account for the ultimate replacement of City owned and operated vehicles and equipment. 14 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) SummM of Significant Accounting Policies, (Continued) 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 General Fixed Assets Account Grou The General Fixed Assets Account Group is used to account for the costs of fixed assets acquired to perform general government functions. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Fixed asset records include estimates of original historical cost as determined by knowledgeable individuals in the City. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. _ No depreciation has been provided on general fixed assets. General Long -Term Debt Account Group The General Long -Term Debt Account Group is used to account for all long-term debt of the City. (c) Measurement Focus and Basis of Accounting Governmental (general, special revenue, debt service and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. 15 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (l) Summary of Significant Accounting Policies, (Continued) (c) Measurement Focus and Basis of Accounting, (Continued) 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. 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 interest and rents 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, forfeitures, charges for services, and miscellaneous revenues are recorded as governmental fund revenues when received in cash because they are generally not measurable until actually received. The proprietary (internal service) fund types are accounted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types report increases (revenues) and decreases (expenses) in total economic net worth. The accrual basis of accounting is utilized by the proprietary funds. Revenues are recognized when they are earned and expenses are recorded when the related liability is incurred. Unbilled service receivables, if material, have been recorded in the financial statements as an accrued revenue. 16 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (d) Budgetary Data The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for _ its proprietary 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. Additional appropriations in the amount of $26,489,134 were made during the year. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. (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 balances. (f) Advances to Other Funds Long-term interfund advances between the City and the Agency are recorded as a receivable and in the long-term debt account group. (g) Investments Investments are reported in the accompanying balance sheet at fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. 17 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued,) (h) Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short- term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of La Quinta. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the internal service fund is considered cash and cash equivalents. (i) Due from Other Governments The amounts recorded as a receivable due from other governments include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County and City Governments and unremitted to the City as of June 30, 1999. The County of Riverside assesses, bills, and collects property taxes for the City. 0) Property, Plant and Equipment Property, plant and equipment used in governmental fund type operations are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in the governmental fund, and the related assets are carried in the General Fixed Assets Account Group. Property, plant and equipment are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value at the date of the donation. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. 18 ---- ar- - _ - CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) SummM of Significant Accounting Policies, (Continued) 0) Property, Plant and Equipment, (Continued) Assets in the general fixed assets account group are not depreciated. Depreciation of building improvements, equipment and furniture, and vehicles in the proprietary fund is computed over the estimated useful lives using the straight-line method. The following schedule summarizes proprietary fund type fixed asset useful lives: Building improvements 15 years Equipment and furniture 3-20 years Vehicles 5-10 years (k) Employee Leave Benefits Sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 and 40 days, respectively. 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. (1) Capitalization of Leases Capitalized leases have been treated in accordance with Financing Accounting Standards Board Statement No. 13 (Accounting for Leases) (see note 6). (m) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) to its employees. (n) Capital Projects Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. 19 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (o) Cash Equivalents for Statement of Cash Flows For purpose of the statement of cash flows, cash equivalents are defined as short- term, highly -liquid investments that are . both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of change in value because of changes in interest rates. Investments purchased within three months of original maturity are considered to be cash equivalents. Cash and cash equivalents in the accompanying statements include the proprietary funds' share of the cash and investment pool of the City of La Quinta. (p) Applicability of FASB Pronouncements to Proprietary Funds The City applies all applicable Governmental Accounting Standards Board (GASB) pronouncements in accounting and reporting for its proprietary operations as well as the following pronouncements issued on or before November 30, 1989, unless these pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations; Accounting Principles Board (APB) Opinions; and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. (q) Memorandum Only Totals Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. Interfund balances and transactions have not been eliminated and the columns do not present consolidated financial information. (2) Cash and Investments Cash and investments are reported as follows on the combined balance sheet: Cash and investments Cash with fiscal agent Total $42,752,207 14,798,307 $57,550,514 Cash and investments held by the City at June 30, 1999 consisted of the following: Demand deposits Investments Total $ 1,184,222 56,366,292 $57,550,514 20 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) The City and its component units are authorized by its investment policy to invest in the following types of investments: Investment Type Maximum % Savings/operating accounts 85% Government pools 35% U.S. government and agency securities 75% Commercial Paper 30% Mutual Funds 20% Certificates of Deposit 60% 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, as follows: Category 1 - includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 - includes deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent or Depository and subject to certain regulatory requirements under State law. ~- Category 3 - includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits. Category Bank Book Form of Deposit 1 2 3 Balance Balance Deposits held by the City: Demand deposits $100,000 919,178 3,419,358 4,438,536 1,184,222 21 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) 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 parry 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. Category 1 2 3 Carrying Value Investments held by the City: U.S. Treasury Notes $ 8,070,247 - - 8,070,247 Federal Home Loan Bank 7,996,334 - - 7,996,334 Federal Farm Credit Bank 4,973,944 - - 4,973,944 FNMA 5,019,952 - - 5,01931952 Investments held by fiscal agent: U.S. Treasury Notes - 11,049,252 - 115049,252 $26,060,477 11.049.252 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund 1433525721 Investments in mutual funds: First American Treasury Obligation Fund 15154,787 Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 3,749,055 $56,366,292 22 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) The carrying amount of the above investments do not differ materially from their fair value. The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage -backed securities, other asset -backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government -sponsored enterprises, and corporations. 3) Pronertv 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. 23 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 3) Pronertv Taxes, (Continued The Agency has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. (4) Fixed Assets A summary of changes in general fixed assets for the year ended June 30, 1999 are as follows: Transfers Balance at to Proprietary Balance at June 30, 1998 Additions Retirements Funds June 30, 1999 Land $13,280,910 - (1,205,239) - 12,075,671 Equipment and furniture 1,014,292 191,524 (189,656) - 1,116,160 Vehicles 161,052 156,493 - (156,493) 161,052 Leasehold improvements 201,070 - - - 201,070 Buildings 11,790,129 35,946 - - 11,826,075 Total $26,447,453 383,963 (1,294,895) 156 493 25,380,028 The following is a summary of proprietary fund type fixed assets for the City at June 30, 1999: Building improvements Equipment Vehicles Less accumulated depreciation Total Internal Service Fund $613,890 106,488 569,316 (585,360) 704 334 24 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (5) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 1999 were as follows: Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 City: Compensated absences payable $ 313,620 243261 - 337,881 Capital leases payable 22,139 - (10,140) 11,999 Due to the Coachella Valley Association of Governments 728,311 - (50,000) 678,311 Developer Agreements Payable 780,871 - (131,580) 649,291 — RDA Project Area No. 1: Tax allocation bonds 39,885,000 - (1,035,000) 38,850,000 Housing tax allocation bonds 17,429,406 - (257,128) 17,172,278 — Pass -through agreements payable: Due to County of Riverside 10,322,052 - (205,815) 10,116,237 Coachella Valley Unified School District 10,690,125 - (621,976) 10,068,149 Advances from other funds* 4,014,837 371,521 (800,000) 3,586,358 RDA Project Area No. 2: Tax allocation bonds 6,750,000 - - 6,750,000 — Housing tax allocation bonds 4,710,594 - (67,872) 4,642,722 Due to County of Riverside 2,279,540 70,460 - 2,350,000 Advances from other funds* 4,895,239 461,880 (1,000,000) 4,357,119 — Financing Authority: Revenue bonds 8,505,000 - (245,000) 8,260,000 Total $111,326,734 928,122 (4,424,511) 107,830,345 * Advances from other funds are money owed by the La Quinta Redevelopment Agency to the City of — La Quinta, which also include interest accrued on the advances. (6) Capital Leases Payable The City entered into two capital leases in July 1997 to acquire copiers. Per lease agreements, monthly payments are $752 and $397, respectively, with the final payment due in July 2000. 25 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (7) Due to the Coachella Valley Association of Governments The City of La Quinta entered into an Interchange Reimbursement Agreement with the Coachella Valley Association of Governments (CVAG) to finance capital improvements at the Washington Street I-10 interchange. The City will reimburse CVAG $828,311 over a period of seventeen years beginning July 31, 1996. The annual payments to CVAG range from $28,311 to $50,000. At June 30, 1999, the balance was $678,311. (8) Developer Agreements Payable A developer lease agreement was entered into in December 1996 between the City of La Quinta and Home Depot U.S.A., Inc. for $880,000. As stipulated by the agreement, Home Depot conveyed the title to certain property to the City, the City then leased the same property to Home Depot for one dollar. Home Depot then subleased the same property back to the City. The City's lease payment to Home Depot each year are equal to 48% of sales tax revenues generated by the store up to a maximum of $128,680 per year. The payments will continue for 12 years after the date that the City first receives sales tax revenues from the store or until total principal and interest due has been paid to Home Depot. Interest due on the outstanding principal is eight percent (8%) per annum. Home Depot is required by the agreement to pay for certain street improvements in the vicinity of the store. The balance at June 30, 1999 was $649,291. (9) Tax Allocation Bonds As of June 30, 1999, the following issuances of Tax Allocation Bonds were outstanding: Series 1994 Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on May 5, 1994, in the amount of $26,665,000 to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 3.80% to 8% and are 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. The bonds are not subject to redemption prior to maturity. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1999 is $23,090,000. 26 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 91 Tax Allocation Bonds, (Continued A portion of the bond proceeds, in the amount of $27,922,526, was deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1989 and 1990 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. As of June 30, 1999, $15,250,000 of the 1990 defeased bonds are outstanding. Series 1998, Project Area No. 1 Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues on a parity with the Agency's previously issued Tax Allocation Refunding Bonds, Series 1994. Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter, through September 1, 2028, at a price equal to the principal amount thereof plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1999 is $15,760,000. A portion of the bond proceeds, in the amount of $7,822,592, was deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1991 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. As of June 30, 1999, $7,205,000 of the defeased bonds are outstanding. Series 1998, Project Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. 27 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (9) Tax Allocation Bonds, (Continued) Interest rates on the bonds range from 3.75% to 5.28% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues of Project Area No. 2. Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2009 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal amount thereof plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1999 is $6,750,000. A portion of the bond proceeds, in the amount of $5,608,347, was deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1992 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. As of June 30, 1999, $5,240,000 of the defeased bonds are outstanding. (10) 1995 Housing Tax Allocation Bonds (TABS) La Quinta Redevelopment Project Areas No. 1 and 2 1995 Housing Tax Allocation Bonds were issued by the Agency on July 1, 1995, in the amount of $22,455,000 to increase, improve and/or preserve the supply of low and moderate income housing in the City. Interest is payable semi-annually on March 1 and September 1 of each year commencing March 1, 1996. Interest payments range from 4% to 6% per annum. Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2011 and on each September 1 thereafter, through September 1, 2025, at a price equal to the principal amount plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1999 is $21,815,000. (11) 1996 Lease Revenue Refunding Bonds On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for construction of remaining improvements to the La Quinta Civic Center site. 28 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 111 1996 Lease Revenue Refundinia Bonds, (Continued The bonds consist of $3,630,000 of serial bonds and $5,160,000 of term bonds. The serial bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts mature between October 19 1997 to October 1, 2008 in amounts ranging from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and mature on October 1, 2018. A surety agreement has been purchased to satisfy the bond reserve requirement. The amount of principal outstanding on the 1996 Lease Revenue Refunding Bonds at June 30, 1999 is $8,260,000. A portion of the $8,790,000 bond proceeds, along with the remaining reserve from the 1991 Local Agency Revenue Bonds, was used to purchase state and local government securities that were deposited in an irrevocable trust with an escrow bank to provide for all future debt service payments of the outstanding 1991 Local Agency Revenue Bonds of $8,200,000. As a result, these certain bonds are considered to be defeased and the liability has been removed from the general long-term debt account group of the Authority. At June 30, 1999, the amount of defeased bonds outstanding is $6,640,000. (12) Due to County of Riverside Proiect Area No. 1 Based on an agreement amended December 21, 1993 between the Agency, the City of La Quinta, and the County of Riverside (County), the Agency will pay to the County $10,517,13 8 from tax increment revenue relating to Project Area No. 1. This agreement is in consideration of the tax revenues lost by the County as a result of the formation of Project Area No. 1. The tax increment is to be paid to the County over a payment schedule through June 30, 2006 in annual amounts ranging from $386,764 to $2,190,473. Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1999 is $10,116,237. 29 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (12) Due to County of Riverside, (Continued) Project Area No. 2 Based on an agreement dated July 5, 1989 between the Agency and the County, until the tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to the County 50% of the County portion of tax increment. At the County's option, the County's pass -through portion can be retained by the Agency to finance new County facilities or land costs that benefit the County and serve the La Quinta population. Per the agreement, the Agency must repay all amounts withheld from the County. The tax increment is to be paid to the County in amounts ranging from $100,000 to $250,000 over a payment schedule through June 30, 2015. Interest does not accrue on this obligation. The balance at June 30, 1999 is $2,350,000. (13) Notes Payable to Coachella Valley Unified School District An agreement was entered into in 1991 between the Agency, the City of La Quinta and the Coachella Valley Unified School District (District) which provides for the payment to the District of a portion of tax increment revenue associated with properties within District confines. Such payments are subordinate to other indebtedness of the Agency incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012, in amounts ranging from $474,517 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 1999 totaled $10,068,149. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school busses, and expansion or rehabilitation of current facilities. (14) Advances To and From Other Funds The following represents a summary of the various transactions between the City of La Quinta and the La Quinta Redevelopment Agency, which are accounted for as advances from the City: Balances at Balances at July 1, 1998 Proceeds Repayments June 30, 1999 Agency expenditures incurred by the City: Project Area No. 1 $4,014,837 371,521 (800,000) 3,586,358 Project Area No. 2 4,895,239 461,880 (1,000,000) 4,357,119 Total $8,910,076 833,401 (1,800,000) 7,943,477 30 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (14) Advances To and From Other Funds, (Continued) There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. In addition, the Agency elected to borrow $511,903, and $39,135 from Project Area No. 1 and Project Area No. 2, respectively, of the Low/Moderate Income Housing Funds to make the ERAF payment in fiscal year ended June 30, 1994. The Redevelopment Agency Project Area No. 1 and Project Area No. 2 Debt Service Funds will repay the Low/Moderate Income Housing Special Revenue Funds. The Agency has ten years to repay this loan. The Agency has elected to make repayment in the tenth year (2003-04). Interest does not accrue on this obligation. In fiscal year ended June 30, 1999, the General Fund advanced $1,000,000 to the Capital Improvement Fund to provide funding for the development of the La Quinta Auto Mall. The Capital Improvement Fund is expected to repay the advance within two years. Interest does not accrue on this obligation. The balance at June 30, 1999 is $835,969. (15) Debt Service Requirements to Maturity The minimum annual requirements (including sinking fund requirements) to amortize the long-term debt of the City as of June 30, 1999 are as follows (advances payable to the City and amounts payable under developer agreements have been excluded since minimum annual debt service payments have not been established): 31 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (15) Debt Service Requirements to Maturity, (Continued) 1996 Pass -through Agreements Lease 1995 1998 1998 Revenue Coachella County Ending Capital Housing 1994 TABS TABS Refunding Valley of June 30 Leases CVAG TABS TABS P.A. No. 1 P.A. No. 2 Bonds USD Riverside Total 1999-00 $13,781 50,000 1,592,570 2,624,696 819,520 420,507 679,670 649,927 773,528 7,624,199 2000-01 1,148 50,000 1,592,187 2,624,885 819,520 417,467 678,955 670,817 1,803,705 8,658,684 2001-02 - 50,000 1,590,690 2,620,315 819,520 419,249 682,178 684,233 1,903,705 8,769,890 2002-03 - 50,000 1,592,820 2,620,855 819,520 420,747 679,435 697,918 1,903,705 8,785,000 2003-04 - 50,000 1,588,538 2,599,465 819,520 417,080 680,830 711,877 2,290,473 9,157,783 2004-05 - 50,000 1,587,990 2,612,140 819,520 418,264 681,220 726,114 2,290,473 9,185,721 2005-06 - 50,000 1,590,890 2,597,700 819,520 419,167 680,575 740,636 2,290,473 9,188,961 2006-07 - 50,000 1,645,502 2,593,456 819,520 419,785 678,865 755,449 100,000 7,062,577 2007-08 - 50,000 1,646,470 2,590,816 819,520 420,135 675,880 770,558 150,000 7,123,379 2008-09 - 50,000 1,645,125 2,584,232 819,520 420,184 676,450 785,968 200,000 7,181,479 2009-10 - 50,000 1,641,540 2,578,160 819,520 419,550 675,280 801,688 200,000 7,185,738 2010-11 - 50,000 1,640,840 2,571,868 819,520 418,272 672,525 817,722 200,000 7,190,747 2011-12 - 50,000 1,641,650 2,569,442 819,520 416,738 673,521 834,076 250,000 7,254,947 2012-13 - 28,311 1,638,750 2,560,155 819,520 419,819 673,130 421,166 250,000 6,810,851 2013-14 - - 1,638,300 - 1,457,490 417,516 671,351 - 250,000 4,434,657 2014-15 - - 1,635,150 - 1,457,520 414,956 673,046 - 250,000 4,430,672 2015-16 - - 1,634,150 - 1,455,730 417,012 673,076 - - 4,179,968 2016-17 - - 1,630,150 - 1,456,990 418,556 671,441 - - 4,177,137 2017-18 - - 1,632,850 - 1,451,300 414,716 668,141 - - 4,167,007 2018-19 - - 1,627,100 - 1,453,530 415,491 668,038 - - 4,164,159 2019-20 - - 1,627,750 - 1,453,420 415,631 - - - 3,496,801 2020-21 - - 1,624,500 - 1,450,970 415,131 - - - 3,490,601 2021-22 - - 1,622,200 - 1,451,050 414,106 - - - 3,487,356 2022-23 - - 1,620,550 - 1,448,530 417,425 - - - 39486,505 2023-24 - - 1,619,250 - 1,448,280 415,088 - - - 3,482,618 2024-25 - - 1,613,150 - 1,445,170 417,094 - - - 3,475,414 2025-26 - - 1,611,950 - 1,444,070 413,444 - - - 3,469,464 2026-27 - - - - 1,439,850 414,137 - - - 1,853,987 2027-28 - - - - 1,437,380 414,044 - - - 1,851,424 2028-29 - - - - 1,436,400 413,162 - - - 1,849,562 2029-30 - - - - - 411,494 - - - 411,494 2030-31 - - - - - 413,906 - - - 413,906 2031-32 - - - - - 410,400 - - - 410,400 2032-33 - - - - - 410,975 - - - 410,975 2033-34 - - - - - 410,500 - - - 410,500 Principal and interest 14,929 678,311 43,772,612 36,348,185 34,660,960 14,571,748 13,513,607 10,068,149 15,106,062 168,734,563 Less: Interest (2,390) - (21,957,612) (13,258,185) (18,900,960) 7 821 748 (5,253,607) - (2,639,825) (69,834,867) *Total principal $11,999 678,311 21,815,000 23,090,000 15,760,000 6,750,000 8,260,000 10,068,149 12,466,237 98,899,696 * Net present value of future lease payments for capital leases. 32 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (16) Debt Without Governmental Commitment The City of La Quinta sold 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 neither 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 not liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and forwarding the collections to bondholders. The Bonds do not constitute an obligation of the City; therefore, they are not included 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, 1999: Amount Outstanding Proceeds Maturity Date Interest Rate at June 30, 1999 Assessment District No. 88-1 $ 855,984 9/2/04 5.50%-7.25% $ 320,000 i Assessment District No. 89-2 13,153,974 9/2/04 6.65%-6.75% 505,000 Assessment District No. 90-1 1,227,155 9/2/05 6.50%-7.00% 610,000 Assessment District No. 91-1 2,240,866 9/2/06 6.70%-6.80% 1,320,000 — Assessment District No. 92-1 1,880,891 9/2/08 5.00%-5.40% 1,335,000 Assessment District No. 97-1 705,262 9/2/18 4.10%-5.20% 745,000 (17) Reserves and Designations of Fund Balances 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, 1999 consisted of the following reserves and designations: Totals — General Special Debt Capital (Memorandum Fund Revenue Service Projects Only) Reserved for: — Debt service $ - - 3,306,726 - 3,306,726 Bond projects - 6,110,194 - 8,684,932 14,795,126 Advances to other funds 8,779,446 551,038 - - 9,330,484 Prepaid items 60,300 - - - 60,300 Deposits 39,812 - - - 39,812 Notes receivable - 2,556,508 - 112,343 2,668,851 — Subtotal 8,879,558 9,217,740 3,306,726 8,797,275 30,201,299 33 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (17) Reserves and Designations of Fund Balances, (Continued) Totals General Special Debt Capital (Memorandum Fund Revenue Service Proiects Only) Unreserved: Designated for: Emergency reserve 49235,063 - - - 4,235,063 Cash flows 1,800,000 - - - 1,800,000 Operations/projects/transfers 8,404,935 6,490,095 - 12,095,000 26,990,030 Undesignated - (612,103) (8,772 (12,953) (633,828) Subtotal 14,439,998 5,877,992 (8,772 12,082,047 32,3914265 Total fund balances $23,319,556 15,095,732 3,297,954 20,879,322 62,592.564 18) Retained Earninizs As of June 30, 1998, all of the retained earnings in the proprietary fund were unreserved. As provided under generally accepted accounting principles, reserves are only established in proprietary funds for equity legally restricted by parties external to the governmental unit. (19) Contributed Capital A summary of changes in contributed capital for the year ended June 30, 1999 are as follows: Balance at June 30, 1998 $701,026 Fixed Assets contributed by other funds 156,493 Balance at June 30, 1999 $857,519 34 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (20) Deferred Compensation The City has made available to its employees a deferred compensation plan, which was created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary and deposit it in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. These assets have been excluded from the accompanying financial statements because they are administered by third party administrators who hold these assets in trust for the exclusive benefit of plan participants and their beneficiaries. (21) Defined Benefit Pension Plan Plan Description The City of La Quinta contributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment — and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, California 95814. Funding Polic Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate. For the year ended June -- 30, 1999, the rate was 7.093% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. Annual Pension Cost For 1999, the City's annual pension cost (employer contribution) in the amount of $219,350 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1996, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 8.25% investment rate of return (net of administrative expenses), (b) projected annual salary increases that vary by duration of service, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of 3.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a four-year period (smoothed market value). PERS unfunded actuarial accrued liability is being amortized as a level percentage of projected 35 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (21) Defined Benefit Pension Plan, (Continued) payroll on a closed basis. PERS has combined the prior service unfunded liability and the current service unfunded liability into a single initial unfunded liability. The single funding horizon for this initial unfunded liability is June 30, 2011. Miscellaneous Employees Three -Year Trend Information Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obligation 6/30/97 $239,356 100% -0- 6/30/98 218,983 100% -0- 6/30/99 219,350 100% -0- Required Supplementary Information ($ amount in thousands) Entry Age Normal Actuarial Unfunded Annual UAAL Accrued Value Liability/ Covered Asa % of Valuation Date Liability of Assets (Excess Assets) Funded Status Payroll Payroll 06/30/95 $2,763,799 2,836,709 (72,910) 102.6% 2,599,639 (2.805%) 06/30/96 3,296,923 3,637,165 (340,242) 110.3% 2,717,286 (12.521%) 06/30/97 3,788,306 4,601,458 (813,152) 121.5% 2,864,531 (28.387%) (22) Claims Payable/Self Insurance The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 84 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500, et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self - insured losses, to purchase excess insurance or reinsurance, and to arrange for group - purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has a representative on the Board of Directors. The Board operates through a 9-member Executive Committee. 36 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 22) Claims Payable/Self Insurance, (Continued General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $20,000 of each occurrence is charged directly to the city; costs from $20,001 to $500,000 are pooled based on a members share of costs under $20,000; costs from $500,001 of $5,000,000 are pooled based on payroll. -- Costs to covered claims above $5,000,000 are currently paid by reinsurance. The protection for the City is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers Compensation The City also participates in the workers compensation pool administered by the Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The City of La Quinta is charged for the first $20,000 of each claim. Costs above that level are pooled to $50,000. Costs from $50,001 to $100,000 per claim are pooled based on the City's losses under its retention level. Costs between $100,001 and $500,000 per claim are pooled based on payroll. Costs in excess of $500,000 are paid by excess insurance purchased by the Authority. The excess insurance provides coverage to statutory limits. During the past three fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage provided for the prior year. 37 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (23) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 1999 exceeded the appropriations of the following funds/departments: General funds: Economic development Animal control Building Public works administration Maintenance/operations Capital projects administration Special revenue funds: Low/Moderate Bond Project Area No. 2 Debt service funds: Financing Authority Redevelopment Agency Project Area No. 1 Capital projects funds: A.D. 97-1 LQ Norte Construction Fund (24) Contingencies Budget Actual Variance $ 743,165 7433,372 (207) 155,137 1673,663 (12,526) 424,938 445,941 (21,003) 56,148 113,851 (57,703) 192,424 238,839 (46,415) (205,905) 42,801 (248,706) 43,073 60,325 (17,252) 690,173 693,609 (3,436) 11,708,299 11,746,724 (38)425) 469,842 (469,842) Various claims and suits have been filed against the City in the normal course of operations. Although the outcome of these lawsuits is not presently determinable, in the opinion of management, the resolution of these matters will not have a material adverse effect on the financial position of the City. 38 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (25) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 1999 are as follows: Current Current Interfund Interfund Receivables Pa. ay bles General Fund $785,357 77,715 - Special Revenue Funds: Local Law Enforcement Block Grant - 575 Low/Mod Income Housing PA No. 1 - 15 Low/Mod Income Housing PA No. 2 - 10 Low/Mod Bond - PA No. 1 - 626,800 Low/Mod Bond - PA No. 2 - 148,581 Debt Service Funds: Redevelopment Agency PA No. 1 - 591 Financing Authority - 93,305 Capital Projects Funds: Capital Improvement Fund 91,379 - Redevelopment Agency PA No. 1 - 47 _ Redevelopment Agency PA No. 2 591 24 Financing Authority - 13,664 - 877 327 877,327 26) Notes Receivable In September 1994, the Agency sold certain real property to E.G. Williams Development Corporation for $2.112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15, 2029. At June 30, 1999, the outstanding balance plus accrued interest is $2,556,508. At June 30, 1999, the total outstanding balance of all notes receivable (including other notes aggregating $112,343) is $2,668,851. 39 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (27) Proposition 218 Recent developments, including the voters' enactment of Proposition 218 in November 1996, have affected the manner in which local governments may impose, extend or increase certain taxes, assessments and property -related fees. The more significant changes which may affect local government revenue streams are as follows: 1. If there is a majority protest against an assessment, the assessment cannot be imposed. This means that increasing an assessment requires majority voter approval. 2. Certain fees are defined as property -related. Some property -related fees require voter approval at an election; others allow for a majority protest but do not require an election. Property -related fees must comply with certain substantive provisions of Proposition 218, which generally limit the amount of fees. 3. Any local tax, assessment, fee or charge is subject to reduction or repeal by initiative. Uncertainty exists as to the scope and impact of these developments on local government revenue streams. Future legislation and litigation may resolve some of these uncertainties. (28) Construction Commitments The following material construction commitments existed at June 30, 1999: Expenditures as of Remaining Project Name June 30, 1999 Commitments City Entrance Monuments Traffic Signal Project Washington Storm Drain Village Development Miles/Washington St. Widening Civic Center Campus Washington St. Widening/Ave. 50 Phase V-D Project Phase V-A Project Auto Mall Improvements Catellus Senior Apartments Phase V-C Project Catellus Single Family Housing Phase V-B Project CVAG/Jefferson Project $ 31,914 306,170 23,371 339,129 - 397,690 23,331 476,669 1,734,052 573,268 4%871 651,111 279,437 937,455 47,275 954,624 27,458 1,161,192 294,151 1,505,849 487,673 1,515,004 76,147 2,274,813 2,046,245 3,503,603 45,766 4,042,725 279,532 8,084,468 40 REQUIRED SUPPLEMENTARY INFORMATION 41 CITY OF LA QUINTA Required Supplementary Information Year ended June 30, 1999 Risk Mitijzation for the Year 2000 Issue The City is in the process of evaluating its computer systems and other equipment that may contain embedded chips to ascertain which of these might be impacted by a failure to properly recognize and process transactions dated on or after January 1, 2000. As of June 30, 1999, the unexpended portion of contracts entered into by the City with various vendors to replace or upgrade its computer systems and other equipment to reduce the risk of year 2000 difficulties was approximately $30,950. Additional amounts may be expended for the City's year 2000 assessment, remediation, and testing activities, as well as amounts that may need to be expended after January 1, 2000 to correct problems not previously detected and corrected by the City. Because of the unprecedented nature of the year 2000 issue, it is not possible to provide assurances that the City has or will achieve complete year 2000 compliance, even after completing all planned year 2000 corrective actions and related testing. Nor can the City determine the effect, if any, on City operations should entities external to the City (other governments, significant vendors, suppliers, service providers, customers, taxpayers, businesses, etc.) fail to achieve year 2000 compliance in a timely manner. An audit is not designed to substantiate the assertions of management with respect to this issue or to evaluate the adequacy of management's plans with respect to this issue. Equipment and systems considered by management to be critical to conducting operations include the following: Data Processing Systems - The data processing systems under evaluation include Accounting Systems, Animal License Software, Builders Square Program, Questas City Clerk Program, and the Code Track Program. As of June 30, 1999, the City has assessed one hundred percent of their data processing systems and identified options for replacing obsolete systems or locating new vendors to correct non -compliant systems. Ninety percent of data processing hardware and software systems have been tested for year 2000 compliance. Roughly ninety-five percent of upgrades have been implemented for non- compliant data processing systems, with the remaining five percent to be completed by July 1999. Non -Data Processing Systems - The non -data processing systems under evaluation include Heating and Air Conditioning, Phone Systems, Mobile Phones, Street Lights, Traffic Signals, Irrigation Software, Stadium Lights, Drainage Pumps, and the Civic Center Alarm System. As of June 30, 1999, the City has assessed ninety percent of non - data processing systems for year 2000 compliance. The systems still to be assessed for year 2000 compliance include mobile phones, traffic signals and the Civic Center alarm system. Assessment of non -data processing systems will continue through July 1999. The City has identified options for replacing systems or locating new vendors to correct non -compliant systems for ninety percent of non -data processing systems. Seventy percent of non -data processing systems have been tested for year 2000 compliance, with the exception of traffic signals, Civic Center alarms, and mobile phones. As of June 30, 1999, fifteen percent of non -data processing systems have been upgraded, and the remaining eighty-five percent will be upgraded by September 1999. 42 DESCRIPTION OF FUNDS FUND TYPE - GENERAL FUND GENERAL FUND - The primary fund of the City used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, Building and Safety, and Community Services. 43 (This page intentionally left blank) 44 CITY OF LA QUINTA General Fund Schedule of Expenditures - Budget and Actual Year ended June 30, 1999 General government: Legislative City manager Economic development Personnel Fiscal services Central services City clerk Total general government Public safety: Police Building and safety administrative Code compliance Animal control Building Emergency services Fire Civic center building Total public safety Community services: Senior center Parks and recreation administration Parks and recreation programs Total community services Planning and development: Community development administration Current planning Total planning and development Public works: Public works administration Development and traffic Maintenance/operations - St. Maintenance/operations - L & L Capital projects administration Total public works Total expenditures Budget $ 475,800 2962566 7431165 37,965 292,978 638,256 235,155 2,719,885 A rtnal 466,685 258,637 743,372 14,369 287,761 4892462 212,955 Variance - Favorable (Unfavorable) 9,115 37,929 (207) 23,596 5,217 148,794 22,200 2,473,241 246,644 35,0951828 23,857.1621 238,207 178.1123 1671001 113,122 378,010 323,349 542661 1551137 1671?663 (12,526) 4243,938 4452941 (21,003) 715,540 612024 101516 192000 11,382 71618 436,505 4342313 2,192 45,7591,081 4,4681294 2901787 222,200 2032904 18,296 504,881 4771192 27,689 53,150 51,645 13,505 7802231 732,741 47,490 3732043 2502888 1221155 577,050 3751P186 2012864 9501093 6261074 3243,019 56,148 113.1851 (57,703) 7141075 673.1841 402234 7862903 477,318 3093,585 1921424 2381839 (46,415) (205,905) 42,801 (248,706) 1,5433,645 15,5461,650 (3,005) $ 103752,935 %8473,000 905,935 45 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures which are legally required to be accounted for in a separate fund. The City of La Quinta has the following Special Revenue Funds: State Gas Tax Fund - To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street -related purposes only. Community Service Projects Fund - To account for the accumulation of resources for parks and other community services projects. Capital projects to be funded from this source will be budgeted and expended in a separate capital project fund. Federal Assistance Fund - To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. Intermodal Surface Transportation Efficiency (ISTEA) Fund - To account for revenues from ISTEA grants received from the Federal Government and the expenditures of those resources. Lighting and Landscape Special Assessment District 89-1 Fund - To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. State Law Enforcement Block Grant (SLEBG) Fund - To account for state funded "Citizens for Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti -gang community crime prevention. Quimby Fund - To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. La Quinta Public Safety Officer Fund - To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. Village Parking Fund - To account for the accumulation of resources provided through developer fees to facilitate parking and traffic flow in that area of the City known as "The Village". Capital projects funded from this source will be budgeted in a separate capital projects fund. South Coast Air Quality Fund - To account for contributions from the South Coast Air Quality Management District. Use of such contributions is limited to reduction and control of airborne pollutants. Local Law Enforcement Block Grant (LLEBG) Fund - To account for Federal Bureau of Justice Block Grant program which may be used for the purpose of reducing crime and improving public safety. Redevelopment Agency, Low and Moderate Income Housing P.A. No. 1 and No 2 Funds - To account for the required 20% set aside of property tax increments that is legally restricted for increasing or improving housing for low and moderate income households. 46 SPECIAL REVENUE FUNDS, (CONTINUED) Redevelopment Agency, Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds - To account for bond proceeds and expenditures of bond -financed low and moderate income housing programs. 47 CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 1999 Community Lighting State Service Federal and Public Gas Tax Projects Assistance ISTEA Landscape SLEBG Quimby Safety Assets Cash and investments $ 107,327 - - - 85,748 60,858 198,378 6,478 Cash with fiscal agent - - - _ _ _ _ _ Accounts receivable - - _ _ _ _ _ _ Interest receivable - - - - _ _ _ _ Notes receivable - - _ _ _ _ _ _ Due from other funds - - - - _ _ _ _ Due from other governments - - - - 19,275 - - - Advances to other funds - - - - _ _ _ _ Total assets $$ 1� - - 105,023 60,858 19� 6,478 Liabilities and Fund Balances Liabilities: Accounts payable $ - - _ _ _ _ _ _ Deposits payable - - - - 34,840 - - 4,168 Due to other funds - - - - _ _ _ _ Total liabilities - - - - 34,840 - - 4,168 Fund balances: Reserved for: Bond projects - _ _ _ _ _ _ _ Advances to other funds Notes receivable Unreserved: Designated for operations/ projects/transfers 107,327 - - - 70,183 60,858 198,378 2,310 Undesignated - - - - _ _ _ _ Total fund balances 107,327 - - - 70,183 60,858 198,378 2,310 Total liabilities and fund balances $$ 1� - - i 105,023 60,85819_ 6,478 48 Low/ Low/ Moderate Moderate Low/ Low/ Income Income Moderate Moderate Village South Coast Housing- Housing- Bond- Bond- Totals Parking Air Quality LLEBG PA No. 1 PA No. 2 PA No. 1 PA No. 2 1999 1998 28,625 18,564 575 3,167,751 2,782,700 - - 6,457,004 5,962,772 - - - - - 3,839,690 2,270,504 6,110,194 8,129,831 - - - 44,006 - - - 44,006 23,301 - - - 22,659 29,209 140,046 37,185 229,099 34,626 - - - 2,556,508 - - - 2,556,508 2,420,750 - - - - - 62,192 - - - - - - - 19,275 5,450 - - - 511,903 39,135 - - 551,038 551,038 28,625 18,564 575 6,302,827 2,851,044 3,979,736 2,307,689 15,967,124 17,189,960 - - - 18,935 7,919 6,171 7,782 40,807 54,988 - - - 15,596 - - - 54,604 49,266 - - 575 15 10 626,800 148,581 775,981 224,894 - - 575 34,546 7,929 632,971 156,363 871,392 329,148 - - 3,839,690 2,270,504 6,110,194 8,129,831 511,903 39,135 - - 551,038 551,038 2,556,508 - - - 2,556,508 2,420,750 28,625 18,564 - 3,199,870 2,803,980 - - 6,490,095 5,839,915 - - - - - (492,925) 119,178 (612,103) (80,722 28,625 18,564 - 6,268,281 2,843,115 3,346,765 2,151,326 15,095,732 16,860,812 28,625 18,564 575 6,302,827 2,851,044 3,979,736 2,307,689 15,967,124 17,189,960 49 CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1999 Community Lighting Gas Service Federal and Public Tax Projects Assistance ISTEA Landscape SLEBG Quimby Safety Revenues: Taxes $ - - _ _ _ Developer fees - - - - 7,000 - 5,520 - Intergovernmental 384,524 - 30,000 91,639 - 46,246 - - Investment income 4,906 - - - 1,655 2,495 10,422 310 Special assessments - - - - 759,273 - - - Rental income - - _ _ _ Gain (loss) on sale of land - - - _ _ _ _ _ Total revenues 389,430 - 30,000 91,639 767,928 48,741 15,942 310 Expenditures: Current: Public safety - - _ - _ - _ _ Planning and development - - - _ _ - Public works 368,800 - - - 801,700 - - - Total expenditures 368,800 - - - 801,700 - - - Excess (deficiency) of revenues over (under) expenditures 20,630 - 30,000 91,639 33,772) 48,741 15,942 310 Other financing sources (uses): Operating transfers in - - - - - - - 2,000 Operating transfers out - (5,810) 30,000 (91,639) 131,333) (693) - - Total other financing sources (uses) - (5,810) (30,000) (91,639) (131,333) 693 - 2,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 20,630 (5,810) - - (165,105) 48,048 15,942 2,310 Fund balances at beginning of year 86,697 5,810 - - 235,288 12,810 182,436 - Fund balances at end of year $ 107,327 - - - 70,183 60,858 198,378 2,310 50 Low/ Low/ Moderate Moderate Low/ Low/ Income Income Moderate Moderate Village South Coast Housing- Housing- Bond- Bond- Totals Parking Air Quaility LLEBG PA No. 1 PA No. 2 PA No. 1 PA No. 2 1999 1998 - - - 2,575,456 1,017,016 - - 3,592,472 3,253,847 - - - 15,911 622,304 - - 650,735 178,713 - 15,810 27,958 - - - - 596,177 1,200,519 1,510 3,590 566 275,497 139,342 490,032 139,915 1,070,240 728,523 - - - - - - - 759,273 809,041 - - - 414,236 - - - 414,236 395,414 - - - 195,945 - - - 195,945 (22,678) 1,510 19,400 28,524 3,477,045 1,778,662 490,032 139,915 7,279,078 6,543,379 - - - - - 33,388 2,127,114 471,575 45,011 60,325 2,704,025 2,729,873 - - - - 1,170,500 1,188,322 2,127,114 471,575 45,011 60,325 3,874,525 3,951,583 1,510 19,400 28,524 1,349,931 1,307,087 445,021 79,590 3,404,553 2,591,796 - - 9,781 - - - - 11,781 3,280,377 6( 9,205) (48,523) (1,099,888) (202,749) (2,392,558) (1,109,016) (5,181,414) (9,412,442 (69,205) (38,742) (1,099,888) (202,749) 2,392,558) (1,109,016 (5,169,633) (6,132,065 1,510 (49,805) (10,218) 250,043 1,104,338 (1,947,537) (1,029,426) (1,765,080) (3,540,269) - 27,115 68,369 10,218 6,018,238 1,738,777 5,294,302 3,180,752 16,860,812 20,401,081 28,625 18,564 - 6,268,281 2,843,115 3,346,765 2,151,326 15,095,732 16,860,812 WH 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, 1999 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 3663,100 384,524 183,424 354,644 2,700 4,906 2,206 33,080 368,800 389,430 2011630 357,724 3682,800 3683P800 3681P800 368,800 20,630 86,697 86,697 $ 863,697 107,327 336,100 336,100 20,630 21,624 - 65,073 201,630 86,697 52 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, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Investment income $ - - - 252100 Total revenues - - - 25,100 Other financing sources (uses): Operating transfers out 5,810 5,810 - 563,383 Total other financing sources (uses) 5,810 5,810 - 563,383 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (5,810) (52810) - (538,283) Fund balances at beginning of year 5,810 5,810 - 544,093 Fund balances at end of year $ - - - 53,810 53 CITY OF LA QUINTA Special Revenue Funds Federal Assistance Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 228,400 303,000 (198,400) 334,732 Investment Income 11,100 - 1,100 - Total revenues 2293,500 30,000 199,500 3342732 Other financing sources (uses): Operating transfers out 130,000 30,000 100,000 334,732 Total other financing sources (uses) 130,000 30,000 100,000 334,732 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 992500 - (99,500) - Fund balances at beginning of year - Fund balances at end of year $ 993,500 - 99,500 - 54 CITY OF LA QUINTA Special Revenue Funds ISTEA Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 1143,465 9110639 (22,826) 410,034 Investment Income - - - 55501 Total revenues 114,465 911,639 22,826 4155535 Other financing sources (uses): Operating transfers out 114,465 91,639 22,826 415,535 Total other financing sources (uses) 114,465 91,639 221-826 415,535 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - - - - Fund balances at beginning of year - - - - Fund balances at end of year $ - - - - 55 CITY OF LA QUINTA Special Revenue Funds Lighting and Landscape Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable Budget Actual (Unfavorable) Revenues: Developer fees $ - 73,000 73,000 Investment income 5,100 12655 (3,445) Special assessments 7962600 759,273 37,327 Total revenues 801,700 7672928 33,772 Expenditures: Current: Public works 801,700 8012700 - Total expenditures 801,700 8013,700 - Excess (deficiency) of revenues over (under) expenditures - 33,772 33,772 Other financing sources (uses): Operating transfers out 144,038 1311333 121,705 Total other financing sources (uses) (144,038) (131,333 12,705 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (144,038) (165,105) (21,067) Fund balances at beginning of year 235,288 235,288 - Fund balances at end of year $ 91,250 70,183 21,067) 1998 63,370 8091041 815,411 852,222 852,222 36,811 (36,811) 272,099 235,288 56 CITY OF LA QUINTA Special Revenue Funds _ SLEBG Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 46,246 46,246 - 433,636 Investment income - 23,495 23,495 610 Total revenues 461,246 481741 2,495 442246 Expenditures: Current: Public safety - - - 332388 Total expenditures - - - 331,388 Excess (deficiency) of revenues over (under) expenditures 465246 481741 2,495 10,858 — Other financing sources (uses): Operating transfers out 58,937 693 58,244 - Total other financing sources (uses) 58,937 693 581,244 - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (12,691) 48,048 60,739 101,858 Fund balances at beginning of year 121,810 12,810 - 12952 Fund balances at end of year $ 119 60,858 603,739 12,810 57 CITY OF LA QUINTA Special Revenue Funds Quimby Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 3021999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Developer fees $ 20,000 5,520 (14,480) 1673,586 Investment income 2,700 10,422 7,722 31,352 Total revenues 223,700 15,942 (6,758) 17031938 Fund balances at beginning of year 1821,436 182,436 - 11,498 Fund balances at end of year 205,136 198,378 6,758 182,436 58 CITY OF LA QUINTA Special Revenue Funds Public Safety Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Investment Income $ 200 310 110 - Total revenues 200 310 110 - Other financing sources (uses): Operating transfers in 2,000 21,000 - - Total other financing sources (uses) 2,000 2,000 - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 2,200 2,310 110 - Fund balances at beginning of year - - - - Fund balances at end of year $ 23,200 23,310 110 - 59 CITY OF LA QUINTA Special Revenue Funds Village Parking Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Revenues: Investment income Total revenues Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 11-100 1,510 410 12098 131100 1,510 410 11,098 27,115 271,115 — 261,017 $ 283,215 281,625 410 273,115 .o — CITY OF LA QUINTA Special Revenue Funds South Coast Air Quality Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 -- Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 483,993 15,810 (33,183) 252,055 — Investment income 2,100 3,590 1,490 2,206 Total revenues 512093 19,400 31,693 27,261 _ Expenditures: Current: — Planning and development 133,797 - 131797 - Total expenditures 131,797 - 13,797 - _ Excess (deficiency) of revenues over (under) expenditures 37,296 192,400 17,896 27,261 -- Other financing sources (uses): Operating transfers out 92,433 69,205 23,228 - _ Total other financing sources (uses) 92,433 691,205 23,228 - Excess (deficiency) of revenues and other financing sources over (under) expenditures and — other financing uses (55,137) (49,805) 52332 272261 Fund balances at beginning of year 68,369 68,369 - 413,108 — Fund balances at end of year $ 13,232 182564 5,332 68,369 61 CITY OF LA QUINTA Special Revenue Funds LLEBG Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Revenues: Intergovernmental Investment Income Total revenues Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 27,958 27,958 - 28,474 - 566 566 13,230 27,958 28,524 566 29,704 9,206 911781 575 - 40,699 48,523 7,824 39,020 31,493 38,742 7,249 39,020 (3,535) (10,218) (6,683) (9,316) 102218 10,218 - 19,534 $ 6,683 - 6,683 10,218 62 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 3021999 Revenues: Taxes Developer fees Investment income Rental income Gain (loss) on sale of land Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 234922277 21575,456 833,179 23,432,379 - 15,911 152,911 11,127 2472500 275,497 27,997 1051590 3413,000 414,236 73,236 395,414 150,000 195,945 452945 (22,678 3,230,777 3,4773,045 246,268 231921,832 2,560,649 2,127,114 2,560,649 2,127,114 670,128 1,349,931 1,738,801 1,099,888 1,738,801 1,099,888 (1,068,673) 2503,043 6,018,238 6,018,238 $ 4,949,565 6,2681,281 433,535 433,535 679,803 638,913 123182716 1,318,716 1,795,539 1,795,539 1,126,293 212,193 1,742,501 1,530,308 (404,015) 6,422,253 6,018)238 63 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Revenues: Taxes Developer fees Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 936,973 1,017,016 803,043 8213,468 - 622,304 622,304 - 20,000 1393,342 119,342 553,851 956,973 1,778,662 8213,689 877,319 838,376 471,575 3661,801 2471,158 8381,376 4712575 3661801 247,158 118,597 00751087 15,188,490 6303,161 - - - 2652517 1,480,886 202,749 13,2782137 339,341 1,480,886 202,749 12278,137 73,824 (1,362,289) 1210431338 23466,627 556,337 1,73 8,777 1,73 8,777 - I I182,440 $ 376,488 2,8435,115 23,466,627 1,738,777 64 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Investment income $ 135,000 4901,032 3551,032 4163,525 Total revenues 135,000 4901P032 35511032 4161,525 Expenditures: Current: Planning and development 597328 453,011 14,317 456,081 Total expenditures 592328 452011 143-317 4563,081 Excess (deficiency) of revenues over (under) expenditures 75,672 445,021 369,349 39,556 Other financing sources (uses): Operating transfers out 5,623,442 2,3921,558 31230,884 3,016,305 Total other financing sources (uses) (5,623,442) 2113921558 311230,884 3,016,305) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (5,547,770) (1,947,537) 31,6002233 (3,055,861) Fund balances at beginning of year 53,294,302 5,294,302 - 8,3501,163 Fund balances at end of year $ 253,468 3,3463,765 3,6002233 53,294,302 65 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Investment income $ 201000 1391,915 1193,915 102,010 Total revenues 202000 1392915 119,915 1021,010 Expenditures: Current: Planning and development 433P073 602325 17,252 2313,095 Total expenditures 43,073 60,325 172252 231,095 Excess (deficiency) of revenues over (under) expenditures 232073 79,590 1023,663 129,085 Other financing sources (uses): Operating transfers in - - - 21802,667 Operating transfers out 22990,542 121091,016 11,881,526 2,957,681 Total other financing sources (uses) (2,990,542) 1,109,016) 128811-526 155,014 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (3,013,615) (12029,426) 129843,189 (284,099) Fund balances at beginning of year 321802752 321801752 - 324642851 Fund balances at end of year $ 1671P137 2,151,326 12,984,189 3,1805,752 DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The City of La Quinta has the following Debt Service Funds: La Quinta Financing AuthoriFund - To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center debt obligation. Redevelopment Agency, P.A. No. 1 and No. 2 - To account for the accumulation of resources for the payment of debt service for bond principal interest and trustee fees. 67 CITY OF LA QUINTA Debt Service Funds Combining Balance Sheet June 3021999 Financing Redevelopment Redevelopment Totals Authority Agency -PA No. 1 Agency -PA No. 2 1999 1998 Assets Cash and investments $ - 2,996,002 645,334 3,6415,336 55,2725,572 Cash with fiscal agent 29 1832946 - 1835,975 743,235 Accounts receivable 504 - - 504 11 Interest receivable - 26,453 11,012 37,465 - Due from other governments - 11 - 11 - Total assets $ 533 3,20651412 6565,346 328631,291 55,3465,818 Liabilities and Fund Balances Liabilities: Accounts payable $ - 45,403 - 41,403 45,340 Accrued expenses - - - - 504,731 Due to other funds 9,305 - 591 9,896 - Advances from other funds - 511,903 39,135 551,038 5515,038 Total liabilities 91P305 516,306 39,726 565,337 1,0607109 Fund balances: Reserved for: Debt service - 23,6902106 616.1620 3,3061726 45,2861709 Unreserved: Undesignated 82772) - - (8,772 - Total fund balances 8,772) 226902106 6162620 3,297,954 45P2865,709 Total liabilities and fund balances $ 533 3,206,412 6565,346 35,863,291 5,346,818 68 CITY OF LA QUINTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30,1999 Financing Redevelopment Redevelopment Authority Agency -PA No. 1 Agency -PA No.2 Revenues: Totals 1999 1998 Taxes $ - 101301,824 410681063 14,3691887 131015,387 Investment income 264 1311849 81,013 213.1126 110,618 Rental income 6843,573 - - 6841573 7341623 Total revenues 6843,837 10,4331673 431149,076 1532672586 13,860,628 Expenditures: Current: Planning and development 91036 1933,047 68,483 270,566 2093,588 Debt service: Principal 245,000 2,092,128 11067,872 3,4051000 1,9601000 Interest 43%573 3,5789729 982,938 520011240 55P0341169 Payments under pass - through obligations - 53,882,820 2,845,262 83,7285,082 9112551,220 Total expenditures 693,609 113746,724 43,9645,555 173,4045p888 1611458,977 Excess (deficiency) of revenues over (under) expenditures (8,772) (1,313,051) (815,479) (2,137,302 (2,598,349 Other financing sources (uses): Operating transfers in - 1,3661514 202,749 1,5691263 2,965,779 Operating transfers out - (511,509) (742,609) (1,254,118) (9101,721) Proceeds of advances - 371,521 46131881 8333-402 810,006 Total other financing sources (uses) - 1,226,526 77,979 111148,547 2,8655,064 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (8,772) (86,525) (893,458) (988,755) 266.1715 Fund balances at beginning of year - 2,7762631 1,510,078 432863709 4,019,994 Fund balances (deficit) at end of year $ (8,772) 2,690,106 616,620 3,297,954 4,286,709 69 CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 3 0, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Investment income $ 12,400 264 Rental income 672,173 684, 573 Miscellaneous 51600 - Total revenues 690,173 684,837 Expenditures: Current: Planning and development 5,600 9,036 Debt service: Principal 245,000 245,000 Interest 43%573 43%573 Total expenditures 690,173 693,609 Excess (deficiency) of revenues over (under) expenditures - 8,772 Other financing sources (uses): Operating transfers in - - Total other financing sources (uses) - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (8,772) Fund balances (deficit) at beginning of year - - Fund balances (deficit) at end of year $ - 8,772 70 (12,136) 12,400 (5,600) 5,336 (3,436) 3,436 (8,772) (8,772) 8,772 734>623 734,623 6,427 285,000 449,623 741,050 6,427 7,897 7, 897 1,470 1,470 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, 1999 Revenues: Taxes Investment income Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Payments under pass -through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) $ 9,969,108 1023013P824 332,716 - 131,849 131,849 9,96911108 10,43331673 4641)565 1998 9,729,515 29,829 92759,344 212,000 1933,047 185,953 1523-565 220902852 220923,128 (1,276) 124823,979 32573,754 3,578,729 (4,975) 3,4965P109 51P8312693 5,882,820 51,127 632512259 11,708,299 11,746,724 38,425 11,382,912 (1,739,191) (1,313,051) 426,140 (1,623,568) 1,73831801 1,3662514 (372,287) 12796,304 (511,509) (511,509) - (3682565) 371,521 371,521 - 364,985 1,5982813 1,2262,526 372,287 117923724 (140,378) (86,525) 5310853 1691,156 2,776,631 2,776,631 - 2,6071-475 $ 2,636,253 2,690,106 53,853 2,7763,631 71 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 3021999 Revenues: Taxes Investment income Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Payments under pass -through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 3,747,891 4,068,063 - 81,013 31,7471,891 4,1493,076 683,350 681P483 111069,148 12067,872 9872913 9823,938 2,844,245 23,845,262 41,969,656 4,9641,555 (1,221,765) 815,479 33 8,674 20231749 (742,609) (742,609) 4611,881 4613,881 573946 77,979 (1,163,819) (893,458) 151510,078 1,510,078 $ 346,259 616,620 72 320,172 81,013 401,185 (133) 1,276 4,975 1,017 5,101 (135,925) 13 5,925 270,361 270,361 3,285,872 80,789 3,366,661 50,596 192,021 1,088,437 3,003,961 4,335,015 968,354 1,161,578 (542,156) 96,089 1,413,989 1,510,078 CAPITAL PROJECTS FUNDS Capital projects funds account for the financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. The City of La Quinta has the following Capital Projects Funds: Infrastructure Fund - To account for the accumulation of resources provided through developer fees for the acquisition, construction or improvement of the City's infrastructure as defined in Resolution 98-39. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. Capital Improvement Fund - To account for the planning, design and construction of various — capital projects throughout the City of La Quinta and the Redevelopment Agency. Assessment District 97-1 La Quinta Norte Construction Fund - To account for the bond proceeds — and other funding that will be used for improvements to Assessment District 97-1. Financing Authority Capital Projects Fund - To account for the Public Financing Authority bond proceeds that will be used for specific projects and programs of the City. Redevelopment Agency, Capital Projects Funds Area 1 and 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. 73 Assets Cash and investments Cash with fiscal agent Accounts receivable Interest receivable Notes receivable Due from other funds Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deposits payable Retainage payable Due to other funds Advances from other funds Total liabilities Fund balances: Reserved for: Bond projects Notes receivable Unreserved: Designated for operations/projects Undesignated Total fund balances Total liabilities and fund balances CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 1999 A.D.97-1 Financing Capital LQ Norte Authority Infastructure Improvement Construction Projects $ 9,543.1606 22352.1806 1805,794 711 - - - 5941)208 1001820 - 91,379 - - $ 9,644,426 2,4447185 180,794 5941P919 $ 95,098 5453,225 - - - 899,524 - - 1635,467 - - - - 13,664 - 835,969 - - %098 2,44431185 - 132664 180,794 594,208 %6355,328 - - - - - - (12,953) 9,635,328 - 180,794 5811,255 $ 9,6443,426 25,4441185 180,794 594,919 74 Redevelopment Redevelopment Totals Agency -PA No.l Agency -PA No.2 1999 1998 1,000,971 1,383,380 14,4621268 711854,997 7,3072105 6023,825 8,504,138 834793943 - 60,900 60,900 813258 95,974 133645 1241439 1421956 - 112,343 1121,343 108,217 - 591 91,970 306,361 8,318,050 23,1731,684 2333561,058 16,973,732 6,196 31522 5643,041 3793,160 - - 899,524 373,635 - - 163,467 2595,532 47 24 1331735 1033,844 - - 835,969 - 65,243 35,546 23,476,736 1,116,171 75,307,105 602,825 81684,932 8,479,943 - 1125,343 112,343 1085217 1,004,702 124541,970 12,09551000 72281,216 - - (12,953 (11,815) 8,311,807 2,1705,138 20,879,322 155,8575,561 811318,050 23,1733,684 23,3563,058 1611973,732 75 CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1999 AD. 97-1 Capital LQ Norte Infastructure Improvement Construction Revenues: Developer fees $ 4,41751323 2401,683 - Intergovernmental - 15,1331,477 - Investment income 5201694 - 5,644 Special assessments - - 38,493 Litigation settlement proceeds - - - Total revenues 41)938,017 1,374,160 44,137 Expenditures: Current: Planning and development - - 469,842 Capital projects 205,395 657721500 - Total expenditures 205,395 6,772,500 4691P842 Excess (deficiency) of revenues over (under) expenditures 45,7323,622 (5,398,340) (425,705) Other financing sources (uses): Operating transfers in 91,639 5,398,340 - Operating transfers out (829,675) - - Proceeds of bonds (net of issuance costs) - - 705,262 Payments to refunded bond escrow agent - - - Total other financing sources (uses) (738,036) 5,39817340 705,262 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 3,99451586 - 27%557 Fund balances at beginning of year 55,6402742 - - Residual equity transfer - - (98,763) Fund balances at end of year $ %635,328 - 180,794 76 Financing Redevelopment Redevelopment Totals Authority Agency -PA No.1 Agency -PA No.2 1999 1998 - - 53,000 416631006 259611792 - - - 1,1333,477 1,167,522 40,721 1642275 11 0,43 5 841,769 5401637 - - - 38,493 - - 8211,589 - 8217589 204 4011721 985,864 1153,435 7,4981,334 4,670,155 - 356,105 321,410 1,147,357 651,832 - - - 6,977,895 73,5881933 - 3563,105 321.4410 85,1251,252 8,240,765 40,721 6291759 (205,975) (626,918) (3,570,610) - 6551259 742,609 6,887,847 6,5792703 (48,770) (278,887) (688,335) (1,845,667) (2,366,728) - - - 705,262 211,5651688 - - - - (13,430,939) (48,770) 376,372 541274 55P74751442 12,347,724 (8,049) 110062131 (151,701) 5,120,524 8,777,114 589,304 7,305,676 21,321,839 1528573561 7,080,447 -(98,763) - 581,255 8,311,807 22170,138 202879,322 15,857,561 77 CITY OF LA QUINTA Capital Projects Funds Infastructure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Developer fees $ 1,06611500 4,417,323 3,350,823 214293,742 Investment income 187,200 520,694 333,494 2243,923 Total revenues 1,2531700 4,938,017 3,6842317 2,6543,665 Expenditures: Capital projects 205,395 2053,395 - 220,379 Total expenditures 2053,395 205,395 - 220,379 Excess (deficiency) of revenues over (under) expenditures 1,0483,305 411732,622 3,684,317 224341,286 Other financing sources (uses): Operating transfers in - 91,639 91,639 - Operating transfers out 6,304,294 (829,675 5)474,619 1,341,883 Total other financing sources (uses) 6,304,294 738,036 535661258 1,341,883 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (5,255,989) 3,994,586 9,250,575 13,0923,403 Fund balances at beginning of year 53,640,742 5,640,742 - 43p548,339 Fund balances at end of year $ 384,753 91P635,328 9,2503,575 5,6403742 78 �s. CITY OF LA QUINTA Capital Projects Funds Capital Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Revenues: Developer fees Intergovernmental Total revenues Expenditures: Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Budget Actual $ 1,010,389 2405,683 8,167,869 1,133,477 9,1781258 1137431160 361,1471237 62772,500 361147,237 62772,500 (26,968,979) 5,398,340 261P968)979 53P3982340 Variance - Favorable 1998 (Unfavorable) Actual (769,706) 532,050 (7,034,392) 1,167,522 (7,804,098) 1,699,572 29113741737 7,368,554 29,374,737 77368,554 21,570,639 5,668,982 (21,570,639) 526%982 (21,570,639) 5,668,982 79 CITY OF LA QUINTA Capital Projects Funds A.D. 97-1 LQ Norte Construction Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 307 1999 Revenues: Investment income Special assessments Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds of bonds (net of issuance costs) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Residual equity transfer Fund balances at end of year Budget Actual Variance - Favorable 1998 (Unfavorable) Actual $ 13500 5,644 43,144 - 382500 382493 7 - 403,000 443,137 41,137 - 4695,842 469,842 - 469,842 469,842 - 403,000 425,705 465,705 - 745,000 705,262 39,738 - 74531000 705,262 39,738 - 785,000 279,557 (505,443) - 98,763 98,763) - $ 785,000 180,794 604,206 - 80 CITY OF LA QUINTA Capital Projects Funds Financing Authority Capital Projects Fund Statement of Revenues, Expenditures and Changes - in Fund Balances - Budget and Actual Year ended June 3021999 _ Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Investment Income $ - 4011721 401721 271,277 Total revenues - 4011721 403721 2731277 Other financing sources (uses): Operating transfers out 567,376 48,770 518,606 176,207 _ Total other financing sources (uses) 567,376 48,770 5182606 176,207 Excess (deficiency) of revenues and other financing sources over (under) expenditures and _ other financing uses (567,376) (8,049) 559,327 (148,930) Fund balances at beginning of year 589,304 5893,304 - 7383,234 Fund balances at end of year $ 21,928 581,255 5595327 589,304 81 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes .in Fund Balances - Budget and Actual Year ended June 30, 1999 Revenues: Investment income Litigation settlement proceeds Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance costs) Payments to refunded bond escrow agent Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1998 Budget Actual (Unfavorable) Actual $ 186,800 1643275 (22,525) 42,161 - 821,589 82131589 204 1861P800 9851,864 7991,064 423,365 2,468,946 356,105 2,1123,841 370,024 2,468,946 3561,105 2,1123,841 3701,024 2,282,146 629,759 .2)911,905 327,659 5111509 65511259 1433,750 368,565 (3,448,747) (278,887) 3311692860 (52,358) - 152134,466 7,822,592 2,937,238 376,372 3,31311610 71P6281,081 (5,219,384) 1,006,131 6,225,515 731300,422 713053,676 75P3053P676 - 53,254 $ 2,086,292 81,311,807 6,22531515 71P305,676 82 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1999 Revenues: Developer fees Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance costs) Payments to refunded bond escrow agent -- Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) $ - 5,000 5,000 30,000 110,43 5 803435 303P000 1153,435 853,435 4042890 3211,410 4042890 321,410 74,890 205,975 742,609 7421,609 (2,326,628) (688,335) 1,584,019 54,274 (1,958,909) (151,701) 2,3217839 27321,839 $ 362,930 231170,138 83,480 83,480 168,915 1,638,293 1,638,293 1,807,208 12807,208 1998 246,276 281,808 281,808 35,532 542,156 (796,280) 6,431,222 5,608,34 , 568,751 5331219 1,788,620 2,321,839 83 (This page intentionally left blank) 84 AGENCY FUNDS Agency funds are used to account for assets held by the City as an agent for an individual, private organizations and other governmental units. The agency funds and their purposes are as follows: The City of La Quinta has the following agency funds: Arts in Public Places Fund - To account for development fees paid in lieu of acquisition and installation of approved art works in a development with expenditures restricted to acquisition, installation, maintenance and repair of art works at approved sites. The development fees are refundable if not expended within two years. Assessment District No. 88-1, 89-2, 90-1, 91-1, 92-1, 97-1 - To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. 85 CITY OF LA QUINTA Agency Funds Combining Balance Sheet June 30, 1999 Assessment Assessment Assessment Arts in District District District Public Places No. 88-1 No. 89-2 No. 90-1 Assets Cash and investments $ 642,487 199,919 228,604 257,208 Accounts receivable - - - - Total assets $ 642.7487 199,919 228,604 257,208 Liabilities Accounts payable $ 423 - - - Deposits payable 642,064 - - - Due to bondholders - 199,919 2281604 257,208 Total liabilities $ 6421,487 1993,919 22804 2571)208 86 Assessment Assessment Assessment District District District Totals No. 91-1 No. 92-1 No. 97-1 1999 1998 444,213 340,335 101,502 2,214,268 1,774,777 - - - - 266 444,213 340,335 1017502 2,214,268 1,775,043 - - - 423 2,500 - - - 642,064 391,034 444)213 340)335 101,502 1,57111781 1,381,509 444,213 340,335 101,502 2,214,268 1,7751)043 87 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 3 0, 1999 Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 ARTS IN PUBLIC PLACES Assets Cash and investments $ 3931P534 3303,236 81,283 642,487 Liabilities Accounts payable 2,500 29,359 (31,436) 423 Deposits payable 391,034 423,753 172,723 642,064 Total liabilities $ 39311534 453,112 (204,159) 6423,487 ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments $ 1711)523 122,478 94,082 1991,919 Liabilities Due to bondholders $ 1713,523 140,072 111,676 1991919 ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments $ 201,485 171,136 (144,017) 22831604 Accounts receivable 266 - 266 - Total assets $ 201,751 1713,136 144,283 2283,604 Liabilities Due to bondholders $ 201,751 191,107 164,254 228,604 88 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 ASSESSMENT DISTRICT NO. 90-1 Assets Cash and investments $ 2323,727 160,763 136,282 2571)208 Liabilities Due to bondholders $ 232,727 178,232 (153,751) 2573,208 ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments $ 43 8,151 3 02,165 296,103 4442213 Liabilities Due to bondholders $ 4381,151 350v383 3443,321 444,213 ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments $ 3371357 2493,670 246,692 3402335 Liabilities Due to bondholders $ 3372357 295,275 292,297 340,335 89 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at July 1, 1998 Additions Deletions June 30, 1999 ASSESSMENT DISTRICT NO. 97-1 Assets Cash and investments $ - 116,918 15,416 1013502 Liabilities Due to bondholders $ - 118,195 16,693 1011502 TOTALS -ALL AGENCY FUNDS Assets Cash and investments $ 1,7741,777 1,453,366 (1,013,875) 21,214,268 Accounts receivable 266 - 266 - Total assets $ 1,775,043 1,453,366 1,014,1 2,21411268 Liabilities Accounts payable $ 2,500 292359 (31,436) 423 Deposits payable 391,034 423,753 (172,723) 64210064 Due to bondholders 1,381,509 1,273,264 1,082,992 1,571,781 Total liabilities $ 1,775,043 1,7261,376 1,287,151 23,214,268 90 GENERAL FIXED ASSETS ACCOUNT GROUP 91 CITY OF LA QUINTA Comparative Schedule of General Fixed Assets - By Source June 30, 1999 General fixed assets: Land Buildings Leasehold improvements Furniture and fixtures Vehicles Total general fixed assets Investment in general fixed assets from: General fund Redevelopment agency Total investment in general fixed assets 1999 1998 $ 12,075,671 11,826,075 201,070 1,116,160 161,052 13,280,910 11;790)129 201,070 1,014,292 161,052 $ 25,380,028 26,447,453 $ 151146,522 15,008,708 10,233,506 11,438,745 $ 25,380,028 26,447,453 92 CITY OF LA QUINTA Schedule of General Fixed Assets - By Function and Activity June 30, 1999 — Furniture Leasehold and Function and Activity Land Buildings Improvements Fixtures Vehicles Totals — General government $ 1250752671 113,8262075 - 1,674 - 233,9032420 Legislative - - - 203,484 - 203,484 City manager - - - 171,206 - 1711206 Finance - - - 1191250 - 1193,250 City clerk - - - 180,540 - 1805,540 Community services - - 2011070 673,348 - 2685418 Building and safety - - - 20%118 161,052 3701170 Community — development - - - 1112460 - 111,460 Public works - - - 2351080 - 2353,080 _ Total $ 121075,671 115,8265,075 2013,070 131116,160 1613,052 25,38051028 93 CITY OF LA QUINTA Schedule of Changes in General Fixed Assets - By Function and Activity Year ended June 30, 1999 Transfer to Balance at Proprietary Balance at July 1, 1998 Additions Deletions Funds June 30, 1999 General government $ 25,071,039 37,620 (1,205,239) - 23,903,420 Legislative 20,484 - - - 20,484 City manager 147,896 62,686 (39,376) - 171,206 Finance 108,351 17,666 (6,767) - 119,250 City clerk 1871183 862 (7,505) - 180,540 Community services 292,274 12,152 (36,008) - 268,418 Building and safety 289,031 81,139 - - 370,170 Community development 106,567 4,893 - - 111,460 Public works 224,628 166,945 - 156,493 235,080 Totals $ 26,447,453 383,963 1,294,895 156,493 25,380,028 94 STATISTICAL SECTION 95 Fiscal Year Ending June 30 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 (1) Source: CITY OF LA QUINTA General Fund Expenditures by Function Last Ten Fiscal Years General Public Government Safety 1,514,110 1,883,105 1,968,275 2,501,105 1,921,155 2,155,813 1,807,205 2,393,202 2,359,673 2,786,575 1,565,265 3,143,697 1,793,301 3,227,438 2,376,935 3,442,056 2,229,389 4,099,523 $2,473,241 4,468,294 Public Works (1) (1) 618,612 600,253 673,144 576,304 813,352 889,694 1,159,372 1,546,650 Community Planning & Capital Service Development Projects 928,798 (1) - 777,366 (1) - 157,897 904,171 11,813 146,686 884,537 119,265 511,416 - 199,115 538,610 282,113 413,142 453,656 201,475 469,110 455,563 170,000 . 494,402 345,054 - 732,741 626,074 - TABLE 1 Total 4,326,012 5,246,745 5,769,461 5,831,883 6,450,073 6,305,104 6,902,364 7,803,358 8,327,740 $9,847,000 Prior to fiscal year 1992 Public Works and Planning & Development expenditures were included with Community Service. City of La Quints Audited Financial Statements 4 96 CITY OF LA QUINTA TABLE 2 General Fund Revenue by Source Last Ten Fiscal Years Fiscal Year Licenses Charges Litigation Ending and Inter- for Settlement June 30 Taxes Permits Governmental Services Proceeds Interest Miscellaneous Total 1990 3,154,942 3,286,872 630,791 (1) (2) 155,530 114,686 7,342,821 1991 3,288,565 785,381 790,880 602,600 (2) 642,813 101,411 6,211,650 1992 3,135,044 576,293 930,503 488,015 (2) 261,380 120,867 5,512,102 1993 3,581,830 622,107 1,157,587 384,000 (2) 238,321 219,641 6,203,486 1994 4,212,604 777,241 1,600,032 469,695 (2) 585,264 1,042,872 8,687,708 1995 4,946,304 902,914 747,784 551,727 477,872 718,310 137,028 8,481,939 1996 5,393,456 998,030 815,990 610,873 12,386 905,420 230,705 8,966,850 1997 5,942,698 793,689 1,072,803 976,897 40,593 941,327 22,712 9,790,719 1998 6,764,355 1,144,562 1,110,553 1,228,269 281,382 1,164,145 114,969 11,808,235 1999 $8,101,191 1,951,981 1,466,788 1,965,219 740,985 1,569,796 74,529 $15,870,489 (1) Previously included in Licenses and Permit (2) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source Source: City of La Quinta Audited Financial Statement 97 CITY OF LA QUINTA Property Tax Levies and Collections Last Nine Fiscal Years Percent of Fiscal Year Total Current Percent Delinquent Total Ending Tax Tax of Levy Tax Collections June 30 Levy Collection Collected Collections to Tax Levy 1991 $280,339 256,297 91.4% 21,921 99.2% 1992 282,201 260,365 92.3% 25,703 101.4% 1993 282,630 244,731 86.6% 14,824 91.8% 1994 288,407 275,752 95.6% 900 95.9% 1995 549,273 487,043 88.7% 786 88.8% 1996 670,398 643,309 96.0% 2,312 96.3% 1997 824,073 760,350 92.3% 0 92.3% 1998 886,175 980,838 110.7% 0 110.7% 1999 $991,001.00 1,148,040 115.8% 0 115.8% Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding supplemental property taxes. 3. Detail prior to fiscal year 1991 not available. Source: City of La Quinta and County of Riverside CITY OF LA QUINTA TABLE _ 4 Schedule of Net Taxable Value Last Nine Fiscal Years Fiscal Year Assessed Less Less Net Ending Secured Unsecured Property Property Homeowner's Taxable June 30 Property Property Value Exemptions Exemptions_ _-____Value _.. _ 1991 $1,278,307,230 7,156,844 1,285,464,074 3,474,595 (1) 1,281,989,479 1992 1,594,767,374 6,396,816- 1,601,164,190 3,605,829 (1) 1,597,558,361 1993 1,773,323,102 6,943,559 1,780,266,661 3,814,434 (1) 1,776,452,227 -- 1994 1,872,768,156 8,119,527 1,880,887,683 3,946,378 18,901,202 1,858,040,103 1995 1,927,834,908 22,822,285 1,950,657,193 4,357,954 20,518,406 1,925,780,839 1996 2,043,276,054 23,801,872 2,067,077,926 6,936,774 22,399,068 2,037,742,084 1997 2,164,204,951 22,511,720 2,186,716,671 6,919,376 22,407,418 2,157,389,877 1998 2,305,593,987 18,844,880 2,324,438,867 9,676,787 24,877,018 2,289,885,062 1999 $2,674,887,437 18,756,736 2,693,644,173 10,998,340 27,581,722 $2,655,064,111 Note: Detail prior to fiscal year 1991 not available (1) Homeowner's exemption not available Source: County of Riverside CITY OF LA QUWrA Property Tax Rates - Direct and Overlapping Governments Last Five Fiscal Years (per $100 of Assessed Value) 1998/99 1997/98 1996/97 1995/96 1994/95 General 1.00000 1.00000 1.00000 1.00000 1.0000 Desert Sands Unified 0.09750 0.09750 0.09750 0.09750 0.09750 College of the Desert 0.00000 0.00000 0.00000 0.00000 0.00000 Coachella Valley Water District 0.02080 0.02080 0.02080 0.02080 0.02080 Total Tax Rate 1.11830 1.11830 1.11830 1.11830 1.11830 Source: County of Riverside TABLE 5 100 CITY OF LA QUINTA Special Assessment Billings and Collections Last Nine Fiscal Years — Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billings Collections (1) to Billings 1991 $355,924 335,177 94.1 1992 5571574 552,249 99.0 1993 559,029 548,291 98.0 — 1994 766,011 734,560 95.9 1995 836,502 737,700 88.2 1996 729,647 699,351 95.9 1997 791,012 757,256 95.7 1998 791,012 761,109 96.2 — 1,999 $790,532 770,164 97.4 (1) Includes Prepayments and Foreclosures Source: Muni Financial Services TABLE 6 101 CITY OF LA QUINTA Schedule of Direct and Overlapping Bonded Debt June 30, 1999 Direct and Overlapping Bonded Debt Percent Applicable (1) June 30, 1999 Bonded Debt Riverside County General Fund Obligations 1.006 $5,637,306 Riverside County Board of Education Certificates of Participation 1.006 181,755 Desert Community College District Certificates of Participation 3.859 67,648 Desert Sands Unified School District Certificates of Participation 8.991 2,383,149 Desert Sands Unified School District Lease Tax Obligation 8.991 6,722,971 Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation 6.308 926,645 Coachella Valley County Water District, I.D. #55 69.080 8,130,716 Coachella Valley County Water District, I.D. #58 1.832 152,606 Coachella Valey Unified School District 43676.000 928,152 City of La Quinta Certificates of Participation 100.000 8,260,000 (1) City of La Quints 1915 Act Bonds 100.000 2,975,000 Total Direct and Overlapping Bonded Debt $36,365,948 (2) (1) Based on 1998-99 ratios. (3) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. Source: California Municipal Statistics, Inc. 102 CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 1999 Assessed Valuation Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin 52.693.644.173 404,046,626 -0- $404,046,626 Notes: Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quinta has no general bonded indebtedness. Source: City of La Quinta TABLE 8 103 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Eight Fiscal Years TABLE 9 Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1992 $182,784 0 182,784 182,784 1.00 1993 548,352 0 548,352 548,352 1.00 1994 548,352 0 548,352 548,352 1.00 1995 699,477 155,000 544,477 699,477 1.00 1996 696,402 160,000 536,402 696,402 1.00 1997 607,950 170,000 437,950 607,950 1.00 1998 734,623 285,000 449,623 734,623 1.00 1999 684,573 245,000 439,573 684,573 1.00 Note: Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. Source: City of La Quints 104 CITY OF LA QUINTA TABLE 10 Demographic Statistics Last Ten Fiscal Years Total City Fiscal Year Population Riverside Population Ending Square Percent County Percent _ June 30 Miles (1) Population (2) Change Population (2) Of County 1990 23.3 10,587 3.1 % 1,144,400 0.9% — 1991 23.8 13,070 23.5% 1,225,800 1.1 % 1992 28.0 14,727 12.7% 1,281,000 1.1% 1993 28.2 15,589 5.9% 1,323,500 1.2% 1994 28.2 16,680 7.0% 1,357,400 1.2% 1995 31.2 17,591 5.5% 1,393,500 1.3% — 1996 31.2 18,050 2.6% 1,381,879 1.3% 1997 31.2 18,931 4.9% 1,379,956 1.4% 1998 31.2 20,444 8.0% 1,441,237 1.4% 1999 31.2 21,763 6.5% 1,473,307 2.2% Source: (1) City of La Quints — (2) State of California Department of Finance 105 CITY OF LA QUINTA Property Value and Construction Activity Last Nine Fiscal Years TABLE 11 Fiscal Year Commercial Residential Ending Property Construction Construction June 30 Value (1) Units Value Units Value 1991 $1,278,307,230 3 7,299,000 304 38,320,527 1992 1,594,767,374 12 7,334,871 320 35,744,443 1993 1,773,323,102 7 2,441,392 324 39,145,539 1994, 1,872,768,156 13 6,081,796 531 79,318,969 1995 1,927,834,908 4 1,100,119 238 29,163,494 1996 2,043,276,054 8 1,018,940 336 53,973,239 1997 2,164,204,951 11 1,876,747 322 36,971,047 1998 2,305,593,987 14 2,689,642 461 70,403,691 1999 $2,674,887,437 19 8,894,767 770 132,521,054 NOTE: Detail prior to fiscal year 1991 not available (1) From Schedule of Net Taxable Value Source: City of La Quints 106 CITY OF LA QUINTA Principal Taxpayers June 10,1990 Taxpayer KSL Desert Resorts Inc. Michael T. and Lynn C. Goodlett TD Desert Development KSL Land Corporation La Quinta Golf Properties Corporation Wal Mart Stores Inc. KSL Hotel Land GMS Realty Capital Pacific Holdings Eagle Hardware and Garden Inc. Tvne of Activitv Recreational, Residential Land Vacant Land Vacant Land, Residential Vacant Land, Residential Recreational, Commercial Land Commercial Vacant Miscellaneous Commercial Vacant Residential Retailer Source: HdL Coren & Cone, Riverside County Assessor 1998/99 Combined Tax Rolls TABLE 12 107 Source: Employer La Quints Hotel and Golf Resort Desert Sands Unified School District Wal-Mart Home Depot Rancho La Quinta Stater Brothers Eagle Hardware Vons City of La Quints Ralphs City of La Quinta CITY OF LA QUINTA Major Employers June 30, 1999 Employees 1,500 525 280 185 150 150 125 75 72 65 Activity Hotel and Golf Resorts School District Retailer Retailer Golf and Tennis Resort Groceries Retailer Groceries Municipal Government Groceries 108 CITY OF LA QUINTA TABLE 14 Schedule of Insurance in Force June 30, 1999 _ Company Name Policy Number Coverage Limits Term Premium Hartford PEBAO7068 Employee Dishonesty, $1,000,000 12/03/98 - 99 $2,500 Forgery, Computer Fraud Reliance Insurance NZB1500917 All Risk Property Insurance 25,621,400 07/01/99-00 15,902 Company Including Auto Physical Damage (Excluding Quake & Flood) Reliance Insurance IMF 026349 Earthquake & Flood 5,000,000 02/07/99-00 20,200 Company Real & Personal Property - Including Contigent Tax Interruption California Certificate #5 Comprehensive General $0 Deductible Retention 12/03/98 - 99 60,300 Joint Powers Liability $50 Million Insurace Authority California Certificate Worker's Compensation 5,000,000 12/03/98 - 99 37,637 Joint Powers 45009-056 Insurance Authority American National EMP9880468 Earthquake & Flood 2,500,000 02/07/99-00 5,000 Real & Personal Property Including Contigent Tax Interruption Chubbs Custom Special Events $1,000,000 N/A Insurance Source: City of La Quinta 109 CITY OF LA QUINTA TABLE 15 Miscellaneous Statistical Data June 30, 1999 Date of Incorporation ....................................... May 2, 1982 Type of City ....................................... Charter City Form of Government ..................................... Council / Manager City Employees ....................................... 72 . City Land Area (square miles) .................................... 31.2 Population....................................... 21,763 Number of Parks ....................................... Total Acreage 5 ....................................... 26 Miles of Streets ........................................ 170.0 Miles of Bike Paths ......................................... 3.0 Number of Major Intersections .................................. 45 Number of Traffic Signals and Safety Lighting ................... :... 32 Number of Traffic Signs ........................................ 2,605 Number of Street Lights ....................................... 7 Public Schools ....................................... 4 Private Schools ....................................... 1 Churches....................................... 3 Banks / Savings and Loan ...................................... 2 Number of Single Family Units - Detached .......................... 10,295 Number of Single Family Units - Attached .......................... 2,260 Number of Multiple Family Units ........................ 0 ....... 697 Number of Mobile Homes ....................................... 247 Source: . City of La Quinta 110 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item B Meeting Date: January 12, 2000 TITLE: Month End Cash Report and Selected Interest Rates - December 1999 BACKGROUND: This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances) but would report in a timely fashion selected cash balances. The Interest Rates are submitted for information only. RECOMMENDATION: Information item only. ohn M. Falconer, Finance Director O c U- ~ N `� ~ 00 M Lo 00 0p O CD D? O M CD �> N CO N N �- � _ ON .. 0�- 00 CV O r 00 ~ O 0 O co O0pO� OCDu')O O Lo CCU LO 1- 0 00 CO-'t-� 0 O N N p N N p� �-N 0)Lj, O L Cn 0 NLnCND�CD co (6 N CND .411 qt cD OMtnao00OCD CD C EN 4 N N N CD N N IO O_ LO�M00 LOco � N N N NLn00O -�NCN 0�0 >Cli M M e N 0 CD w 0 c Di N Di N vi N 0 N 00 O co O co O O O O 00 O �Lo O O O O Ln m � 0) m N (o N oocw CD N N O M O O O N N N to u 00 O 00 (0 00 CD000 00 00 0 z,LL to Cn Cn co -4 N 00 O Cq Ug0 O co OM N ti ti (DIli LM LO tC LO NN�LO CL a) 0 W 3� LL (0 CD CD cn N ti � f` � 0 �j MD C co CD CM D Q cu m 0 0 0 0 :3 0 0 0 Q LO LO LO LO O 2) � 0 0~0 cn p Lri O NO 000 000 000 j ti N L LO 00 M CV N N CD U- cj 11 3M rn O E M V C7 M O O a T7 N 00 ^ till LL-14 u U _ Iq 4 M M N I� to C)CD O CD � Ns(fl 00 LO rn N ti ti O O N O CA LO co O N ccu CT Y O M � L L a) 1 N a L cl i N M *k c a c c O cv w n m o cu c c CD ) c U L m m c a L L c6 m a)F- c O Q m co Ma? c9 v, E E E »r c 0o c a� ca3 c m 'a N a? a) U) � N om oU) c w Qa v Q �5a)UOa)a w-)-)QU)0ZOQ ti Q) ° O O C) O * p O C) CC) T. CD M CD O o O C) CAA CO C5 N CD M O o CA U-j v- O 'c -E E m p N U) o- Ew p L O N O O �`� QML C N w- O O f'�N N O ` O Co In N 1L d� L E Q cO} ° N c L O O O '0 N ._ c� M p O L a � C r N c x > N O a�a O co O O ca oo cE c E U) o w N m 5 Q) c O > c C DO.. CULL O 0)U a �.0 N N ` N N O.Op 0 0 E c O LL O H C V c CU L N N O L O O CT L' p vj .� Q c a N -C O U � .> U 0 N a) N L� Q N to c N O �.L+ nE� c�o 0_N ii M o aD -a �c (n E� o c >'> L CLCQ [1 0 N cLi E o f° s _CL = O O ns '' O O _a O c or�'a, E� 0 a a°i°' L E (�, � � y.d Vl L Q C NO U) �O m c N w > c ^. L a. 0)�O >. U Q o O �°c O t aci me �o Ea c3 c D c C�� mN O N O N O N N O Mp yLLL ..ps „" 5 N c Q] L 0 L a N O (A— C.0 N N U Q p 2 x 0) U O a ��p c 0 a N N 0) g C N 3000 0O�cw 0x cCL Off°' N� c oo m� �3c >� t��w L> n �°o8 c CL LL f-- U `: H .S fn O ca E 0 Clio Federal Reserve Statistical Release H.15 - Daily Update http://www.federalreserve.gov/Releases/H 15/update/ M *elected Interest Rates Release Date: January 4, 2000 H.15: Release I Release dates I About I ASCII I Historical data I Daily update H.15 Daily Update The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday through Friday on this site. H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release SELECTED INTEREST RATES January 4, 2000 Yields in percent per annum Mon Jan 3 Instruments SELECTED INTEREST RATES Federal funds (effective) 1 2 3 5.43 Commercial paper 3 4 5 6 Nonfinancial 1-month 5.51 2-month 5.53 3-month 5.60 Financial 1-month 5.59 2-month 5.66 3-month 5.77 Bankers acceptances (top rated) 3 4 7 3-month 5.85 6-month 5.96 CDs (secondary market) 1-month 5.70 3-month 5.89 6-month 6.05 Eurodollar deposits (London) 3 9 1-month 5.69 3-month 5.94 6-month 6.06 Bank prime loan 2 3 10 8.50 Discount window borrowing 2 11 5.00 U.S. Government securities Treasury bills Auction high 3 4 12 3-month 5.36 6-month 5.59 1-year Secondary market 3 4 3-month 5.27 061r.) 1 of 3 01/05/2000 8:50 AM Federal Reserve Statistical Release H.15 - Daily Update http://www.federalreserve.gov/Releases/H 15/update/ 6-month 5.55 1-year 5.72 Treasury constant maturities 3-month 5.48 6-month 5.81 1-year 6.09 2-year 6.38 3-year 6.42 5-year 6.50 7-year 6.65 10-year 6.58 20-year 6.94 30-year 6.61 Composite Over 10 years (long-term) 14 6.87 Corporate bonds Moody's seasoned Aaa 7.75 Baa 8.27 State & local bonds 15 Conventional mortgages 16 FOOTNOTES 1. The daily effective federal funds rate is a weighted average of rates on trades through N.Y. brokers. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages (http://www.federalreserve.gov/releases/cp) for more information. 6. The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page. 7. Representative closing yields for acceptances of the highest rated money center banks. Source: Telerate, Inc. 8. An average of dealer offering rates on nationally traded certificates of deposit. 9. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 10. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans. 11. Rate for the Federal Reserve Bank of New York. 12. Auction date for daily data; weekly and monthly averages computed on an issue -date basis. Data are stop yields from uniform -price auctions, rounded to two decimal places. (The U.S. Treasury publishes stop yields to three decimal places at http://www.publicdebt.treas.gov). 13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. 14. Unweighted average of rates on all outstanding bonds neither due nor callable in less than 10 years. 15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 16. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC. 0 G 4 2 of 3 01/05/2000 8:50 AM Federal Reserve Statistical Release H.15 - Daily Update http://www.federalreserve.gov/Releases/H15/update/ DESCRIPTION OF THE TREASURY CONSTANT MATURITY SERIES Yields on Treasury securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The constant maturity yield values are read from the yield curve at fixed maturities, currently 3 and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a 10-year maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity. In estimating the 20-year constant maturity, the Treasury incorporates the prevailing market yield on an outstanding Treasury bond with approximately 20 years remaining to maturity. H.15: Release I Release dates I About I ASCII I Historical data I Daily update Home I Statistical releases To comment on this site, please fill out our feedback form. Last update: January 4, 2000 3 of 3 01/05/2000 8:50 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Federal Reserve Release 0 a 1. . A I ft ifif -.-I 1=� - Release About Outstanding Historical discount rates I Historical outstandings Data as of January 4, 2000 volume Commercial Paper Rates and Outstandings statistics Derived from data supplied by The Depository Trust Company 1999: 4 Posted January 5, 2000 -- ---- Discount rates Yield curve Money market basis Percent 1 7 15 30 ISO 90 Days io Mduffy Fin ne io l — — — Nonf ina ncia l • •• • • A2/P2 Discount rate spread Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) Basis points 6.1 6.0 5.9 5.8 5.7 5.6 5.5 5.4 5.3 110 100 90 80 70 60 50 40 30 2.0 10 01 MAAY98 09AUG98 17 NOV98 25 FE999 05J U N99 1 M EP99 22D EC99 31 M11AR00 42 "" . - p earl — — — A2%P2 spread. 5—day moving awe rage E} v 0 1 of 3 01/05/2000 8:50 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Discount rate history Thirty -day commercial paper (daily) 01 MIIAY98 09AUG98 17 NOV98 28FE999 051 U N99 13S EP99 — Fnaneiai — — — Nonfinaneial ••••• A3/P3 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars 12001 1100 1000 +Xi 800 01 MIfAY98 09AUG98 17N CYV9B 25 FE999 05J U N99 13SE P99 — Fina neia I — — — Nonfinancial Percent k 8 7 a 5 4 22❑ EC99 31 MAR00 Billions of dollars 290 280 270 280 25D 240 230 220 210 22❑ EC99 31 MIIAR00 Commercial paper outstanding Commercial paper outstanding, miscellaneous categories Release I About I Outstanding I Historical discount rates I Historical outstandings Home I Statistical releases 0 � '7 2 of 3 01/05/2000 8:50 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ To comment on this site, please fill out our feedback form. Last update: January 5, 2000 3 of 3 01/05/2000 8:51. AM LAIF Performance Report, Philip Angelides http://www.treasurer.ca.gov/Stolperfhtm Philip l sState Treasurer Inside the She Treasurer's Office Local Agency Investment Fund LAIF Performance Reporting Date: 12/29/99 Effective Date: 12/29/99 Quarter Yield: 5.498% Daily: 5.749% Year: 5.355% Life: 197 Days Quarter Ending 09/30/99: Apportionment Rate: 5.21 % Earnings Ratio .00014244868910525 Fair Value Factor .998606521 Monthly Average For 5.484% November Obi 1 of 2 01/05/2000 9:10 AM LAIF Performance Report, Philip Angelides http://www.treasurer.ca.gov/Stolperf.htfn orpo Boni 7.49' Commercial Paper 20.93% Pooled M on ey Investment Account Portfolio Composition $30.8 Billion 11/30/99 Reverses Loans -2.73% Treasuries 7 1001 14.53% CD's/BN's 21.49% WSJ"* I",- I I= me Deposits 8.62% Mortgages 0.05% gencies )-.44 % ■Treasuries ❑Time Deposits ■Mortgages ®Agencies ■ CD's}BN's ■ Commercial Paper ■ Corporate Bonds E]Loans ■ Reverses 010 2 of 2 01/05/2000 9:10 AM INVESTMENT ADVISORY BOARD Meeting Date: January 12, 2000 TITLE: Pooled Money Investment Board Report for October 1999 BACKGROUND: Correspondence & Written Material Item C The Pooled Money Investment Board Report for October 1999 is included in the agenda packet. At the December IAB meeting, staff was directed to contact LAIF and inquire about the percentage changes in collateralized certificates of direct and reverse repurchase agreements. Staff contacted Pat Beal, LAIF Administrator who stated that the Treasurer has pursued the investment of collateralized certificates of deposit to a greater degree then in the past in order to spread money to local banks. Attached is the LAIF policy on collateralized time deposits from the LAIF Answer book. Also attached is a fax from Ms. Beal with an analysis of a sample financial institution (Coast Commercial Bank of Santa Cruz) and the government code requiring bank deposits. Reverse repurchase agreements are made by LAIF based upon market conditions and involve 1 year T-Bills. The proceeds from the loaning of these securities are matched to Certificates of Deposit which pay a higher yield for the same time period. Staff also inquired about the status of the investment staff at LAIF and was told that no changes in the core investment group have been made. Receive & Falconer, Finaoce Director DEC 2 71999 Philip Angell* des By October 1999 063 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT OCTOBER 1999 TABLE OF CONTENTS SUMMARY........................................................................... l SELECTED INVESTMENT DATA.............................................2 PORTFOLIO COMPOSITION...................................................3 INVESTMENT TRANSACTIONS...............................................4 TIMEDEPOSITS..................................................................14 DEMAND BANK DEPOSITS...................................................22 POOLED MONEY INVESTMENT BOARD DESIGNATION .......... 23 064 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF OCTOBER 1999 WITH OCTOBER 1998 (DOLLARS IN THOUSANDS) Average Daily Portfolio Accrued Earnings Effective Yield � Average Life -Month End (In Days) Total Security Transactions Amount Number Total Time Deposit Transactions Amount Number Average Workday Investment Activity Prescribed Demand Account Balances For Services For Uncollected Funds $ 3199399867 $ 311,218,919 $ +7209948 $ 145,832 $ 1479354 $ (1422) 5.391 5.557 -0.166 194 184 +10 1 $ 14,156,318 $ 19,270,925 $ (591149607) I 314 431 -117 $ 678,600 $ 1,147,790 $ (469,190) 64 76 -12 $ 7419746 $ 972,320 $ (230,574) $ 211,828 $ 177,619 $ +34,209 $ 132,800 $ 130,565 $ + 2,235 PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) TYPE OF SECURITY Government Bills Bonds Notes Strips Total Government Federal Agency Discount Notes Ceritficates of Deposit Bank Notes Bankers' Acceptances Repurchases Federal Agency Discount Notes Time Deposits GNMAs Commercial Paper FHLMC Coporate Bonds Pooled Loans GF Loans Reversed Repurchases Total (Ail Types) Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month OCTOBER 31,1999 PERCENTAGE CHANGE FROM AMOUNT PERCENT PRIOR MONTH $ 2,017,602 6.44 -0.34 0 0.00 0 29747,815 8.76 +0.13 0 0.00 0 $ 497659417 15.20 -0.21 $ 3,262,514 10.41 +1.0 5,179,103 16.52 -2.17 1,8921,982 6.04 +0.4 • 0.00 0 - 0.00 0 39538,064 11.29 +0.37 2,575,490 8.21 +1.09 19545 0.00 0 693569740 20.28 -3.89 15,190 0.05 +0.01 292989060 7.33 +0.74 1,8751,882 5.98 -0.61 7279700 2.32 +2.32 (1,137,631) -3.63 -1.07 $ 3193519056 100.00 OCTOBER 1999 NUMBER AMOUNT 314 $ 14,156,318 59 1579230 64 678,600 437 $149992,148 5.391 5.265 SEPTEMBER 1999 NUMBER AMOUNT 385 $1794601,262 20 11,409 79 875,640 484 $1893479311 5.274 5.224 2 _ _� Col E 7 Commercial Paper 20.28% Pooled Money Investment Account Portfolio Composition $31.4 Billion Reverses Loans -3.63% Treasuries ,q 'An%, CD's/BN's 22.56% 3 ie Deposits 8.21 % Mortgages 0.05% ncies 70% 10/31 /9 9 8 Treasuries B Time Deposits ■ Mortgages ® Agencies O CD's/BN's 0 Bankers Acceptances ■ Repo El Commercial Paper 0 Corporate Bonds * Loans ® Reverses POOMONEY INVESTMEikT"ACC�OUNT M r , at.. of MATURITY TRANW .-AMOUNT ER ECTNE pgiE ___ ...M ... __.� . _ _._.___w �_. _. _ _. _ �b ._ . _ . _. ___ ......._ QF9QJRM ,IL4�t r_ . -0 iAB�iFEi 10/01/99 REDEMPTIONS BN FNB Chic 5.170% 10/01/99 5.170 $15,000 78 $168,025.00 5.241 BN FNB Chic 5.170% 10/01/99 5.170 50,000 78 560,083.33 5.241 BN FNB Chic 5.170% 10/01/99 5.170 50,000 78 560,083.33 5.241 CD Deutsche 5.250% 10/01/99 5.250 25,000 59 215,104.17 5.322 CD Deutsche 5.250% 10/01/99 5.250 50,000 59 430,208.33 5.322 CP GECC 10/01/99 5550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP Heller 10/01/99 5.360 50,000 46 342,444.44 5.471 CP GECC 10/01/99 5.090 50,000 78 551,416.67 5.218 CP GECC 10/01/99 5.090 50,000 78 551,416.67 5.218 CP Heller 10/01/99 5.240 50,000 87 633,166.67 5.380 CP FMCC 10/01/99 5.160 50,000 94 673,666.67 5.303 CP FMCC 10/01/99 5.160 50,000 94 673,666.67 5.303 CP GMAC 10/01/99 5.180 50,000 94 676,277.78 5.323 CP GMAC 10/01/99 5.180 50,000 94 676,277.78 5.323 CP JP Morgan 10/01/99 5.190 50,000 94 677,583.34 5.334 CP JP Morgan 10/01/99 5.190 50,000 94 677,583.34 5.334 CP GMAC 10/01/99 5.160 50,000 95 680,833.33 5.303 CP GMAC 10/01/99 5.160 50,000 95 680,833.33 5.303 Disc Notes FHLMC 10/01/99 4.460 50,000 361 2,236,194.44 4.733 Disc Notes FHLMC 10/01/99 4.460 50,000 361 2,236,194.44 4.733 PURCHASES CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP GMAC 10/04/99 5.400 50,000 CP GMAC 10/04/99 5.400 50,000 CP Amer Exp 10/05/99 5.330 50,000 CP Amer Exp 10/05/99 5.330 50,000 10/04/99 REDEMPTIONS CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP GMAC 10/04/99 5.400 50,000 3 22,500.00 5.477 CP GMAC 10/04/99 5.400 50,000 3 22,500.00 5.477 CP Household 10/04/99 5.300 50,000 35 257,638.89 5.401 CP Heller 10/04/99 5.360 50,000 49 364,777.78 5.474 CP GMAC 10/04/99 5.200 50,000 62 447,777.78 5.319 CP GMAC 10/04/99 5.200 50,000 62 447,777.78 5.319 CP JC Penney 10/04/99 5.360 50,000 90 670,000.00 5.508 CP FMCC 10/04/99 5.200 10,000 96 138,666.67 5.346 CP FMCC 10/04/99 5.200 50,000 96 693,333.33 5.346 4 G3 POOLIED-MOI.tEYY1N1/ESTMENT ACCOUNT"` «...... .� .. .i1. MATURtt1f,DAYS' AMOUNT E E. �QATE: TYPE M ' � �Y�ELQ �HEi.O,�EARIM_ 10/04/99 REDEMPTIONS (continued) CP FMCC 10/04/99 5.200 50,000 96 693,333.33 5.346 CP FMCC 10/04/99 5.180 50,000 97 697,861.11 5.326 CP FMCC 10/04/99 5.180 50,000 97 697,861.11 5.326 CP JP Morgan 10/04/99 5.190 50,000 97 699,208.34 5.336 CP JP Morgan 10/04/99 5.190 50,000 97 699,208.34 5.336 CP FMCC 10/04/99 5.160 50,000 98 702,333.33 5.306 CP FMCC 10/04/99 5.160 50,000 98 702,333.33 5.306 MTN GMAC 6.050% 10/04/09 6.100 35,000 717 4,191,434.72 6.102 PURCHASES CP Amer Exp 10/05/99 5.300 15,000 CP Amer Exp 10/05/99 5.300 50,000 CP Household 10/05/99 5.300 50,000 CP Household 10/05/99 5.300 50,000 CP Merrill 10/05/99 5.300 50,000 CP Merrill 10/05/99 5.300 50,000 CP SRAC 02/08/00 5.950 50,000 10/05/99 REDEMPTIONS CP Amer Exp 10/05/99 5.300 15,000 1 2,208.33 5.374 CP Amer Exp 10/05/99 5.300 50,000 1 7,361.11 5.374 CID. Household 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Household 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Merrill 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Merrill 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Amer Exp 10/05/99 5.330 50,000 4 29,611.11 5.407 CP Amer Exp 10/05/99 5.330 50,000 4 29,611.11 5.407 CP Comnwealth 10/05/99 5.650 10,000 5 7,847.22 5.732 CP Heller 10/05/99 5.400 50,000 7 52,500.00 5.533 CP Merrill 10/05/99 5.300 30,000 12 53,000.00 5.383 CP ConAgra 10/05/99 5.440 20,000 13 39,288.89 5.526 PURCHASES CP ConAgra 10/06/99 5.350 50,000 CP Amer Exp 10/08/99 5.230 50,000 CP Amer Exp 10/08/99 5.230 50,000 CP Text Fin 10/12/99 5.350 45,000 CP Heller 10/21 /99 5.420 50,000 CP GECC 03/01/00 5.830 40,000 CP GECC 03/06/00 5.830 50,000 CP GECC 03/06/00 5.830 50,000 10/06/99 SALES Treas Notes 5.625% 12/31 /99 5.075 50,000 615 4,672,697.47 5.533 Treas Notes 5.625% 12/31 /99 5.075 50,000 614 4,664,928.13 5.533 Treas Notes 5.375% 01 /31 /00 5.175 25,000 588 2,268,248.69 5.653 Ou9 5 POOLED MONEY- INVESTMENT ACCOUNT Af TRANS PAR, DAYS AMOUNT EFFECTIVE MW DESCRIPTION DALE Y1ELQ -AW EM EAR= Y1ELQ 10/06/99 SALES (continued) Treas Notes 5.375% 01 /31 /00 5.175 25,000 588 2,268,248.70 5.653 Treas Notes 5.375% 01 /31 /00 5.175 50,000 588 4,536,497.38 5.653 Treas Notes 5.500% 03/31 /00 5.214 50,000 463 3,576,430.25 5.641 REDEMPTIONS CP ConAgra 10/06/99 5.350 50,000 1 7,430.56 5.425 CP Rohm 10/06/99 5.450 7,952 14 16,853.82 5.537 NO PURCHASES 10/07/99 REDEMPTIONS CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 - 5.280 50,000 13 95,333.33 5.363 PURCHASES CP Armstrong 10/08/99 5.370 18,500 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP Rohm 10/08/99 5.300 50,000 CP Rohm 10/08/99 5.300 50,000 MTN Assoc 6.680% 06/05/00 6.030 7,000 MTN Assoc 6.330% 06/09/00 6.027 18,500 10/08/99 REDEMPTIONS CP GECC 10/08/99 5.260 7,000 1 1,022.78 5.333 CP Armstrong 10/08/99 5.370 18,500 1 2,759.58 5.444 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP Rohm 10/08/99 5.300 50,000 1 7,361.11 5.374 CP Rohm 10/08/99 5.300 50,000 1 7,361.11 5.374 CP Amer Exp 10/08/99 5.230 50,000 3 21,791.67 5.304 CP Amer Exp 10/08/99 5.230 50,000 3 21,791.67 5.304 CP ConAgra 10/08/99 5.600 14,200 9 19,880.00 5.685 CP GMAC 10/08/99 5.200 50,000 66 476,666.67 5.322 CP GMAC 10/08/99 5.180 50,000 98 705,055.56 5.327 CP GMAC 10/08/99 5.180 50,000. 98 705,055.56 5.327 CP Household 10/08/99 5.170 50,000 102 732,416.67 5.319 CP FMCC 10/08/99 5.080 50,000 107 754,944.44 5.229 CP . FMCC 10/08/99 5.080 50,000 107 754,944.44 5.229 6 010 POOLED MONEY INVESTMENT: ACCOUNT t e 31/ MATURITY TRANS : PAR DAYS 'AMOUNT EFFECTIVE DESCRPTION . _w.... L - YlE.1.Q , 10/08/99 REDEMPTIONS (continued) CP GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 CID GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 CID GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 CID GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 Disc Notes FHLMC 10/08/99 4.680 15,000 171 333,450.00 4.852 PURCHASES MTN Chase 10/12/99 REDEMPTIONS CID Text Fin CID Countrywide Disc Notes FNMA NO PURCHASES 10113/99 REDEMPTIONS 5.818% 12/10/01 6.335 17,500 10/12/99 5.350 45,000 7 46,812.50 5.429 10/12/99 5.410 33,000 13 64,469.17 5.495 10/12/99 4.560 50,000 277 1,754,333.33 4.791 CID GMAC 10/13/99 5.310 50,000 44 324,500.00 5.418 CID Salomon 10/13/99 5.220 10,000 68 98,600.00 5.345 CID GECC 10/13/99 5.190 50,000 71 511,791.67 5.316 CID GECC 10/13/99 5.190 50,000 71 511,791.67 5.316 CID GECC 10/13/99 5.190 50,000 71 511,791.67 5.316 CID GMAC 10/13/99 5.180 20,000 103 296,411.11 5.330 CID GMAC 10/13/99 5.180 50,000 103 741,027.78 5.330 CID Household 10/13/99 5.170 50,000 107 768,319.44 5.323 CID GECC 10/13/99 5.000 50,000 131 909,722.22 5.163 CID GECC 10/13/99 5.000 50,000 131 909,722.22 5.163 PURCHASES CID GECC 10/14/99 5.200 50,000 CID GECC 10/14/99 5.200 50,000 CID GECC 10/14/99 5.200 50,000 10/14/99 REDEMPTIONS CD Bayer Lnds 5.170% 10/14/99 5.165 CD Bayer Lnds 5.170% 10/14/99 5.165 CD Deutsche 5.190% 10/14/99 5.190 CD Deutsche 5.190% 10/14/99 5.190 CD CIBC 5.190% 10/14/99 5.190 CD CIBC 5.190% 10/14/99 5.190 CID GECC 10/14/99 5.200 CID GECC 10/14/99 5.200 CID GECC 10/14/99 5.200 CID GMAC 10/14/99 5.170 CID GMAC 10/14/99 5.170 50,000 80 573,339.64 5.231 50,000 80 573,339.64 5.231 50,000 86 619,916.67 5.262 50,000 86 619,916.67 5.262 50,000 90 648,750.00 5.262 50,000 90 648,750.00 5.262 50,000 1 7,222.22 5.272 50,000 1 7,222.22 5.272 50,000 1 7,222.22 5.272 50,000 83 590,222.22 5.253 50,000 83 590,222.22 5.253 Oil 7 POOLED MONEY:-1N1/ESTMENT AOCO.ItNT.,, .. al MATURITY TRANS _ PAR:, DAYS A#ROUNT EFFECTIVE -IM: ;EARNM YIELQ z QESCRIF ._...___:: _. _..._._ _ _ .. .._.... _ _.. _ . 10/14/99 REDEMPTIONS (continued) CP JP Morgan 10/14/99 5.100 50,000 84 595,000.00 5.233 CP JP Morgan 10/14/99 5.100 50,000 84 595,000.00 5.233 Treas Bills 10/14/99 4.440 50,000 339 2,090,500.00 4.698 Treas Bills 10/14/99 4.440 50,000 339 2,090,500.00 4.698 Treas Bills 10/14/99 - 4.197 50,000 344 2,005,472.22 4.433 Treas Bills 10/14/99 4.197 50,000 344 2,005,472.22 4.433 Treas Bills 10/14/99 4.200 50,000 344 2,006,666.50 4.436 Treas Bills 10/14/99 4.200 50,000 344 2,006,666.50 4.436 Treas Bills 10/14/99 4.135 50,000 345 1,981,354.17 4.365 Treas Bills 10/14/99 4.135 50,000 345 1,981,354.17 4.365 Treas Bills 10/14/99 4.140 50,000 345 1,983,750.00 4.370 Treas Bills 10/14/99 4.140 50,000 345 1,983,750.00 4.370 RRP Treas Bills 10/14/99 4.555 50,000 80 (501,038.36) -4.618 Treas Bills 10/14/99 4.555 50,000 80 (501,038.36) -4.618 Treas Bills 10/14/99 4.500 50,000 83 (512,265.62) -4.562 Treas Bills 10/14/99 4.500 50,000 83 (512,265.62) -4.562 Treas Bills 10/14/99 4.527 50,000 84 (522,629.07) -4.589 Treas Bills 10/14/99 4.527 50,000 84 (522,629.07) -4.589 Treas Bills 10/14/99 4.590 50,000 86 (542,306.97) -4.653 Treas Bills 10/14/99 4.590 50,000 86 (542,306.97) -4.653 Treas Bills 10/14/99 4.640 50,000 90 (573,350.30) -4.704 Treas Bills 10/14/99 4.640 50,000 90 (573,350.30) -4.704 PURCHASES BN B/A 6.030% 02/29/00 6.030 50,000 CP Rohm 10/15/99 5.300 28,030 CP GECC 03/01/00 5.880 50,000 CP W/F 03/08/00 5.870 25,000 CP W/F 03/08/00 5.870 50,000 10115/99 REDEMPTIONS CP Rohm 10/15/99 5.300 28,030 1 4,126.64 5.374 CP JP Morgan 10/15/99 4.790 50,000 178 1,184,194.45 4.974 CP JP Morgan 10/15/99 4.790 50,000 178 1,184,194.45 4.974 Disc Notes FNMA 10/15/99 4.680 25,000 178 578,500.00 4.857 Disc Notes FNMA 10/15/99 4.680 25,000 178 578,500.00 4.857 Disc Notes FNMA 10/15/99 4.190 50,000 359 2,089,180.56 4.433 PURCHASES CD Deutsche 6.050% 01 /10/00 6.050 15,000 CD Deutsche 6.050% 01 /10/00 6.050 50,000 CP GECC 02/08/00 5.970 50,000 01w POOLED MONEY INVESTMENT ACCOUNT Sv .. �! Af MATURrTY TRANS PAR DAYS AMOUNT EFFECTNE` DAM IM, QA�E YIFI.Q -I!> EAQNFn YIELQ 10118/99 REDEMPTIONS CP Text Fin 10/18/99 5.400 15,450 19 44,032.50 5.490 CP GECC 10/18/99 5.310 50,000 19 140,125.00 5.398 CP GECC 10/18/99 5.310 50,000 19 140,125.00 5.398 CP Heller 10/18/99 5.400 50,000 19 142,500.00 5.490 PURCHASES CD Dresdner 6.060% 02/16/00 6.055 30,000 CP GECC 01/27/00 6.000 20,000 CP GECC 03/06/00 5.900 50,000 CP GECC 03/06/00 5.900 50,000 • CP W/F 03/10/00 5.900 50,000 10/19/99 NO SALES PURCHASES CP Morg Stan 02/16/00 5.960 30,000 CP Morg Stan 02/16/00 5.960 50,000 CP GECC 03/01/00 5.920 50,000 CP GECC 03/01/00 5.920 50,000 CP GECC 03/02/00 5.920 50,000 CP GECC 03/02/00 5.290 50,000 CP GECC 03/06/00 5.920 50,000 CP GECC 03/06/00 5.920 50,000 16/20/99 REDEMPTIONS CP Hertz 10/20/99 5.200 50,000 78 563,333.33 5.332 PURCHASES CP Heller 02/29/00 6.080 50,000 CP Heller 03/01/00 6.080 50,000 10/21/99 REDEMPTIONS CD Soc Gen 5.315% 10/21/99 5.315 50,000 57 420,770.83 5.388 CD Soc Gen 5.315% 10/21/99 5.315 50,000 57 420,770.83 5.388 CP Heller 10/21/99 5.420 50,000 16 120,444.44 5.508 CP GECC 10/21/99 5.310 50,000 22 162,250.00 5.401 CP GECC 10/21/99 5.310 50,000 22 162,250.00 5.401 PURCHASES CP Morg Stan 01 /10/00 6.100 5,000 CP Morg Stan 01/10/00 6.100 50,000 Treas Bills 10/12/00 5.142 50,000 Treas Bills 10/12/00 5.142 50,000 flis 9 POOLED.: MONEY. INVESTMENT ACCOUNT - - sY a�.; MATURITY .,TRANS PAR DAYS A�AOlINT EFFECTIVE: DATE Y1ELQ S IiELQ= -EARNED YwLQ 10/21/99 PURCHASES r/ Disc Notes FNMA 01/26/00 5.125 4,380 Disc Notes FNMA 03/10/00 5.125 50,000 Disc (dotes FNMA 03/10/00 5.125 50,000 10/22/99 SALES C/ Disc Notes FNMA 01/26/00 5.125 4,380 1 601.62 5.196 Disc Notes FNMA 03/10/00 5.125 50,000 1 6,817.25 5.186 Disc Notes FNMA 03/10/00 5.125 50,000 1 6,817.25 5.186 PURCHASES CP Rohm 10/25/99 5.230 49,744 CP Morg Stan 01 /12/00 6.100 50,000 CP Morg Stan 03/02/00 5.960 50,000 CP Morg Stan 03/02/00 5.960 50,000 CP GECC 03/29/00 5.910 50,000 CP GECC 03/29/00 5.910 50,000 CP GECC 03/29/00 -5.910 50,000 Treas Bills 10/12/00 5.175 50,000 10/25/99 REDEMPTIONS CP Rohm NO PURCHASES 10/26/99 REDEMPTIONS CD B/A NO PURCHASES 10/27/99 REDEMPTIONS 10/25/99 5.230 49,744 4.700% 10/26/99 4.700 50,000 3 21,680.09 5.304 365 2,382,638.89 4.765 BN B/A 5.310% 10/27/99 5.310 50,000 63 464,625.00 BN B/A 5.310% 10/27/99 5.310 50,000 63 464,625.00 CD U/B Calif 5.030% 10/27/99 5.030 50,000 153 1,068,875.00 CD U/B Calif 5.030% 10/27/99 5.030 50,000 153 1,068,875.00 CD Mellon 4.900% 10/27/99 4.900 50,000 181 1,231,805.56 CD Mellon 4.900% 10/27/99 4.900 50,000 181 1,231,805.56 CD Mellon 4.900% 10/27/99 4.900 50,000 181 1,231,805.56 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 CD Bkrs Trst 4,930% 10/27/99 4.920 50,000 189 1,291,566.10 CD Bkrs Trst 4.930% 10/27/99 4.920 50,000 189 1,291,566.10 CD Bkrs Trst 4.930% 10/27/99 4.920 45,000 190 1,168,560.11 CD Bkrs Trst 4.930% 10/27/99 4.920 50,000 190 1,298,400.12 5.383 5.383 5.099 5.099 4.968 4.968 4.968 4.968 4.968 4.968 4.968 4.988 4.988 4.988 4.988 kV Ole c POOLED MONEY: NYfSTMENT=ACCOt�NT ry r TRANS' ; PAR ' tkA AMOUNT EFFECTNE M a MATUFtM TYPE DESGBIPiQjli Q�AIE at mo YIE1 n 10/27/99 REDEMPTIONS (continued) CD Westpac Bk 4.925% 10/27/99 4.915 50,000 190 1,297,080.61 4.983 CD U/B Calif 4.960% 10/27/99 4.960 35,000 191 921,044.44 5.028 CD U/B Calif 4.960% 10/27/99 4.960 50,000 191 1,315,777.78 5.028 CD Bkrs Trst 4.960% 10/27/99 4.950 50,000 191 1,313,192.89 5.018 CD Bkrs Trst 4.960% 10/27/99 4.950 50,000 191 1,313,192.89 5.018. CP GECC 10/27/99 5.310 25,000 28 103,250.00 5.406 CP GECC 10/27/99 5.310 50,000 28 206,500.00 5.406 CP Household 10/27/99 5.310 50,000 28 206,500.00 5.406 CP Household 10/27/99 5.310 50,000 28 206,500.00 5.406 CP Comnwealth 10/27/99 5.500 26,000 44 174,777.78 5.614 CP GMAC 10/27/99 5.310 50,000 71 523,625.00 5.440 CP GMAC 10/27/99 5.310 50,000 71 523,625.00 5.440 CP GECC 10/27/99 5.160 40,000 110 630,666.67 5.315 CP GECC 10/27/99 5.160 50,000 110 788,333.33 5.315 CP GECC 10/27/99 5.160 50,000 110 788,333.33 5.315 CP GECC 10/27/99 5.160 50,000 110 788,333.33 5.315 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP . FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CID B/A 10/27/99 5.170 50,000 117 840,125.00 5.331 CP B/A 10/27/99 5.170 50,000 117 840,125.00 5.331 CP GMAC 10/27/99 5.240 50,000 120 873,333.33 5.407 CP GMAC 10/27/99 5.240 50,000 120 873,333.33 5.407 CP GMAC 10/27/99 5.140 50,000 126 899,500.00 5.306 CP Bear 10/27/99 5.070 50,000 132 929,500.00 5.237 CP Bear 10/27/99 5.070 50,000 132 929,500.00 5.237 PURCHASES CP Heller 02/08/00 6.150 30,000 CP GECC 03/27/00 5.910 50,000 CP GECC 03/27/00 5.910 50,000 10/28/99 NO REDEMPTIONS PURCHASES CP Rohm 11/04/99 5.420 50,000 CP Rohm 11 /05/99 5.420 50,000 CP Amer Exp 11/08/99 5.270 5,000 CP Amer Exp 11/08/99 5.270 50,000 CP Amer Exp 11/08/99 5.270 50,000 CP Assoc 11/08/99 5.270 50,000 CP Assoc 11/08/99 5.270 50,000 CP Amer Exp 11 /09/99 5.270 50,000 CP Amer Exp 11 /09/99 5.270 50,000 CP ConAgra 11 /10/99 5.470 23,885 CP Assoc 11 /10/99 5.270 50,000 CP Assoc 11 /10/99 5.270 50,000 11 POOLED MONEY INVESTMENT ACCOUNT df : el MATURITY TRANS PAR:: DAYS AMOUNT QATE_ .,...... DESCRIPTION i X= i s Hw _ _.. FABNEQ 10/28/99 PURCHASES r/ Disc Notes FHLMC 01/20/00 5.350 7,870 Disc Notes FNMA 01/26/00 5.350 50,000 Disc Notes FNMA 01/26/00 5.350 50,000 Disc Notes FNMA 03/10/00 5.350 50,000 Disc Notes FNMA 03/10/00 -5.350 50,000 10/29/99 REDEMPTIONS CP GMAC CP GMAC SALES r/ Disc Notes FHLMC Disc Notes FNMA Disc Notes FNMA Disc Notes FNMA Disc Notes FNMA PURCHASES BN B/A BN B/A CP Assoc CP Assoc CP Assoc CP GMAC CP GMAC CP Household CP Household CP Morg Stan CP Morg Stan CP GECC CP GECC 10/29/99 5.310 10/29/99 5.310 50,000 73 538,375.00 5.442 50,000 73 538,375.00 5.442 01 /20/00 5.350 7,870 1 1,128.85 5.424 01/26/00 5.350 50,000 1 7,171.08 5.424 01/26/00 5.350 50,000 1 7,171.08 5.424 03/10/00 5.350 50,000 1 7,125.61 5.424 03/10/00 5.350 50,000 1 7,125.61 5.424 6.010% 03/29/00 6.010% 03/29/00 11 /01 /99 11 /01 /99 11 /01 /99 11 /01 /99 11 /01 /99 01 /10/00 01 /10/00 01 /10/00 01 /10/00 03/27/00 03/27/00 6.010 6.010 5.330 5.330 5.330 5.330 5.330 6.020 6.020 6.100 6.100 5.880 5.880 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 30,000 50,000 12 10 Al The abbreviations indicate the type of security purchased or sold; i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes, and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EIGM), Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FTC), Corporate Securities (CB), U.S. Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA) Medium Term Notes (MTN). b/ Purchase or sale yield based on 360 day calculation for discount obligations and Repurchase Agreements. .C/ Repurchase Agreement. .d/ Par amount of securites purchased, sold, or redeemed. g/ Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. Y Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. NAME AGOURA HILLS Pacific Crest Bank Pacific Crest Bank East West Bank East West Bank East West Bank East West Bank Grand National Bank Grand National Bank Grand National Bank Grand National Bank Grand National Bank BEVERLY HILLS City National Bank City National Bank City National Bank City National Bank City National Bank City National Bank Roseville First National Bank Western Sierra National Bank CHICO a North State National Bank North State National Bank North State National Bank North State National Bank North State National Bank Tri Counties Bank TO Counties Bank Tri Counties Bank Tri Counties Bank 10/12/99 5.180 5,000,000.00 04/17/00 10/12/99 5.390 5,000,000.00 10/16/00 08/17/99 4.740 38,000,000.00 11/15/99 10/07/99 4.830 35,000,000.00 01/14/00 10/14/99 4.960 8,000,000.00 01 /21 /00 07/16/99 4.710 27,000,000.00 01 /21 /00 09/08/99 4.910 3,000,000.00 12/07/99 10/15/99 4.960 1,000,000.00 01/14/00 07/16/99 4.730 2,000,000.00 01/14/00 09/20/99 4.830 3,095,000.00 01 /20/00 08/13/99 5.140 3,000,000.00 02/07/00 05/19/99 4.820 20,000,000.00 02/28/00 03/31 /99 4.740 50,000,000.00 03/31 /00 05/04/99 4.820 25,000,000.00 05/03/00 07/27/99 5.040 10,000,000.00 07/26/00 09/15/99 5.280 20,000,000.00 09/15/00 10/12/99 5.360 25,000,000.00 10/16/00 07/26/99 4.740 1,000,000.00 01 /24/00 08/04/99 4.970 3,000,000.00 11 /05/99 04/06/99 4.730 1,000,000.00 04/06/00 10/04/99 5.020 1,000,000.00 04/07/00 08/24/99 5.210 1,000,000.00 08/24/00 09/07/99 5.240 500,000.00 09/01 /00 08/30/99 5.160 1,000,000.00 09/01 /00 09/09/99 4.920 10,000,000.00 12/09/99 09/16/99 4.860 10,000,000.00 12/16/99 09/21 /99 4.730 10,000,000.00 12/21 /99 07/14/99 4.740 10,000,000.00 01 /11 /00 14 018 NAME CITY OF INDUSTRY EverTrust Bank TIME DEPOSIT DATE 09/14/99 DEPOSIT YIELD 4.760 PAR AMOUNT (S) MATURITY 1,000,000.00 DATE 12/13/99 EverTrust Bank 09/22/99 4.670 2,000,000.00 12/21 /99 EL CENTRO Valley Independent Bank 08/11/99 5.150 3,750,000.00 02/07/00 Valley Independent Bank FRESNO 08/11/99 5.250 3,750,000.00 08/11/00 United Security Bank 08/20/99 5.090 10,000,000.00 02/16/00 INGLEWOOD Imperial Bank 10/14/99 5.190 20,000,000.00 04/13/00 Imperial Bank 10/21 /99 5.290 25,000,000.00 05/25/00 Imperial Bank 10/28/99 5.450 20,000,000.00 06/22/00 Imperial Bank 05/19/99 4.860 25,000,000.00 11/18/99 Imperial Bank 06/28/99 5.100 25,000,000.00 12/22/99 Imperial Bank 09/16/99 4.970 25,000,000.00 01/27/00 Imperial Bank 07/15/99 4.800 50,000,000.00 02/03/00 Imperial Bank 09/23/99 5.050 18,000,000.00 02/24/00 Imperial Bank 08/23/99 5.040 25,000,000.00 03/02/00 Imperial Bank 09/09/99 5.220 25,000,000.00 03/09/00 Imperial Bank 07/29/99 4.840 18,000,000.00 03/30/00 Imperial Bank 08/12/99 5.100 26,000,000.00 04/27/00 LODI - Bank of Lodi 09/16/99 4.860 1,000,000.00 12/15/99 Bank of Lodi 10/08/99 5.110 2,000,000.00 04/10/00 LOS ANGELES Broadway Federal Bank 07/01 /99 5.160 1,250,000.00 12/28/99 Broadway Federal Bank 07/01/99 5.200 1,250,000.00 06/30/00 Broadway Federal Bank 09/29/99 5.230 2,500,000.00 10/02/00 Community Bank 06/10/99 5.000 5,000,000.00 12/07/99 Community Bank 06/14/99 5.070 10,000,000.00 12/13/99 Community Bank 07/13/99 4.750 20,000,000.00 01/10/00 Community Bank 06/22/99 5.030 5,000,000.00 06/22/00 Community Bank 08/11/99 5.230 15,000,000.00 08/11/00 Community Bank 10/25/99 5.490 5,000,000.00 10/27/00 Founders National Bank of L.A. 06/17/99 5.020 95,000.00 12/14/99 General Bank 10/12/99 4.590 10,000,000.00 11/12/99 General Bank 07/20/99 4.680 7,000,000.00 01 /21 /00 General Bank 10/25/99 5.130 28,000,000.00 01/24/00 General Bank 07/27/99 4.730 15,000,000.00 02/02/00 General Bank 08/03/99 4.900 15,000,000.00 02/14/00 General Bank 08/13/99 5.110 25,000,000.00 03/10/00 Manufacturers Bank 08/11 /99 4.900 10,000,000.00 11 /09/99 Manufacturers Bank 09/07/99 4.970 10,000,000.00 12/06/99 Preferred Bank 08/18/99 4.840 4,000,000.00 11 /16/99 Preferred Bank 08/26/99 4.970 2,000,000.00 11/30/99 Preferred Bank 09/03/99 4.940 5,000,000.00 12/03/99 Preferred Bank 09/16/99 4.820 9,000,000.00 12/15/99 Preferred Bank 09/20/99 4.710 9,000,000.00 12/20/99 Preferred Bank 09/28/99 4.820 3,000,000.00 01 /04/00 Preferred Bank 07/16/99 4.700 3,000,000.00 01/18/00 Wilshire State Bank 08/31/99 5.290 4,000,000.00 08/31/00 Oak Valley Community Bank 03/30/99 4.630 1,000,000.00 01/31/00 Oak Valley Community Bank 09/20/99 5.070 11000,000.00 03/24/00 Oak Valley Community Bank 03/30/99 4.750 1,000,000.00 03/31/00 Oak Valley Community Bank 05/06/99 4.830 500,000.00 05/22/00 Oak Valley Community Bank 08/10/99 5.220 500,000.00 08/09/00 Oak Valley Community Bank 09/27/99 5.190 500,000.00 09/29/00 Citizens Business Bank 03/09/99 4.850 5,000,000.00 03/08/00 Citizens Business Bank 03/23/99 . 4.780 10,000,000.00 03/22/00 Citizens Business Bank 04/07/99 4.720 10,000,000.00 04/06/00 Citizens Business Bank 08/23/99 4.970 20,000,000.00 05/25/00 Citizens Business Bank 06/16/99 5.150 10,000,000.00 06/15/00 Citizens Business Bank 07/07/99 5.100 5,000,000.00 07/06/00 Citizens Business Bank 08/10/99 5.220 10,000,000.00 08/09/00 NAME PALO ALTO Bay Area Bank Cupertino National Bank Cupertino National Bank Cupertino National Bank Mid -Peninsula Bank Mid -Peninsula Bank Mid -Peninsula Bank POMONA PFF Bank and Trust PFF Bank and Trust Bank of Petaluma BEDDING North Valley Bank Mechanics Bank Mechanics Bank Mechanics Bank Mechanics Bank Mechanics Bank Mechanics Bank SACRAMENTO American River Bank Bank of Sacramento River City Bank River City Bank River City Bank Sanwa Bank of California Sanwa Bank of California Sanwa Bank of California 10/08/99 5.140 5,000,000.00 04/17/00 08/06/99 4.980 10,000,000.00 02/04/00 08/30/99 5.120 10,000,000.00 02/25/00 10/19/99 5.090 10,000,000.00 03/22/00 08/06/99 4.980 15,000,000.00 02/04/00 08/30/99 5.120 10,000,000.00 02/25/00 03/10/99. 5.180 10,000,000.00 03/08/00 05/25/99 4.900 8,000,000.00 11/30/99 09/08/99 5.600 10,000,000.00 03/10/00 08/10/99 5.140 1,000,000.00 02/07/00 03/23/99 4.780 3,000,000.00 03/22/00 03/08/99 4.840 10,000,000.00 03/07/00 04/05/99 4.740 10,000,000.00 04/04/00 05/06/99 4.810 10,000,000.00 05/05/00 06/11/99 5.150 10,000,000.00 06/12/00 08/12/99 5.250 10,000,000.00 08/11 /00 10/07/99 5.330 10,000,000.00 10/13/00 09/29/99 4.990 1,000,000.00 04/03/00 09/02/99 5.060 500,000.00 12/03/99 07/13/99 4.780 5,000,000.00 01/10/00 07/30/99 4.870 5,000,000.00 01 /31 /00 08/18/99 5.210 5,000,000.00 08/18/00 08/03/99 4.900 7,000,000.00 02/07/00 07/15/99 5.000 10,000,000.00 07/14/00 07/27/99 5.010 5,000,000.00 07/26/00 ,17__. Sanwa Bank of California 08/16/99 5.190 50,000,000.00 08/15/00 Sanwa Bank of California 08/23/99 5.180 10,000,000.00 08/22/00 Union Bank of California 08/03/99 4.740 100,000,000.00 11/02/99 Union Bank of California 08/17/99 4.730 50,000,000.00 11/16/99 Union Bank of California 10/27/99 5.150 50,000,000.00 01/25/00 Union Bank of California 08/26/99 5.160 100,000,000.00 02/23/00 Union Bank of California 09/28/99 5.040 100,000,000.00 03/28/00 Bank of Salinas 07/22/99 4.680 8,000,000.00 01 /26/00 Bank of Salinas 09/16/99 4.930 12,000,000.00 01/27/00 San Diego First Bank 06/01 /99 4.840 1,500,000.00 11 /30/99 San Diego First Bank 06/22/99 5.030 1,500,000.00 06/21 /00 San Diego First Bank 08/04/99 5.150 1,000,000.00 08/07/00 Bank of Canton California 05/06/99 4.810 5,000,000.00 05/05/00 Bank of Canton California 05/13/99 4.780 5,000,000.00 05/12/00 Bank of Canton California 06/01/99 5.000 5,000,000.00 05/31/00 Bank of Canton California 06/02/99 5.000 5,000,000.00 05/31/00 Bank of Canton California 07/21/99 4.950 5,000,000.00 07/21/00 Bank of Canton California 09/01/99 5.280 5,000,000.00 09/01/00 Bank of Canton California 09/13/99 5.290 5,000,000.00 09/13/00 Bank of the West 07/07/99 4.990 34,000,000.00 01/05/00 Bank of the West 07/13/99 4.770 25,000,000.00 01/12/00 Bank of the West 07/13/99 4.770 25,000,000.00 01/12/00 Bank of the West 07/21 /99 4.680 25,000,000.00 01 /31 /00 Bank of the West 06/08/99 4.820 25,000,000.00 02/16/00 Bank of the West 04/29/99 4.760 51,500,000.00 04/29/00 Bank of the West 08/27/99 4.960 25,000,000.00 05/25/00 Bank of the West 05/19/99 4.890 30,000,000.00 05/25/00 Bank of the West 05/26/99 4.860 87,000,000.00 05/25/00 California Federal Bank 09/27/99 4.840 3,000,000.00 01/05/00 California Federal Bank 10/04/99 4.890 5,000,000.00 01/05/00 California Federal Bank 07/16/99 4.720 100,000,000.00 01/18/00 NAME SAN FRA_NCISCO (cost 1 Millennium Bank Oceanic Bank Oceanic Bank Trans Pacific National Bank United Commercial Bank United Commercial Bank United Commercial Bank United Commercial Bank United Commercial Bank SAN JOSE San Jose National Bank SAN LEANDRO Bay Bank of Commerce SAN LUIS OBISPO First Bank of San Luis Obispo First Bank of San Luis Obispo First Bank of San Luis Obispo First Bank of San Luis Obispo First Bank of San Luis Obispo San Luis Trust Bank San Luis Trust Bank Westamerica Bank Westamerica Bank Westamerica Bank Westamerica Bank Westamerica Bank 10/27/99 5.390 2,000,000.00 05/01/00 03/05/99 4.920 2,000,000.00 03/07/00 03/12/99 4.780 2,000,000.00 03/15/00 09/13/99 5.260 800,000.00 03/17/00 08/13/99 5.150 20,000,000.00 02/11 /00 10/04/99 5.030 20,000,000.00 04/05/00 09/20/99 5.100 20,000,000.00 04/27/00 09/03/99 5.310 20,000,000.00 09/01 /00 10/07/99 5.360 10,000,000.00 10/13/00 07/12/99 5.010 5,000,000.00 07/11 /00 10/07/99 4.84 5,000,000.00 01 /13/00 08/02/99 4.750 3,600,000.00 11 /03/99 08/10/99 4.880 2,000,000.00 11 /08/99 08/24/99 4.930 2,500,000.00 11/22/99 10/04/99 4.890 1,000,000.00 01 /14/00 10/27/99 5.180 1,000,000.00 01 /25/00 09/23/99 4.850 350,000.00 01 /13/00 10/27/99 5.170 1,000,000.00 01 /31 /00 08/13/99 4.860 50,000,000.00 11 /15/99 07/13/99 4.770 25,000,000.00 01 /12/00 07/21 /99 4.680 25,000,000.00 01 /27/00 07/20/99 4.680 25,000,000.00 01 /31 /00 07/27/99 4.770 25,000,000.00 01 /31 /00 NAME SANTA BARBARA FNB of Central California TIME DEPOSIT DATE 08/11/99 DEPOSIT YIELD 5.140 - PAR AMOUNT (S) MATURITY DATE 02/07/00 5,000,000.00 FNB of Central California 10/01/99 5.000 5,000,000.00 03/31/00 Santa Barbara Bank & Trust 07/08/99 4.760 5,000,000.00 01/07/00 Santa Barbara Bank & Trust 07/16/99 4.740 5,000,000.00 01/14/00 Santa Barbara Bank & Trust 07/19/99 4.740 5,000,000.00 01 /21 /00 Santa Barbara Bank & Trust 08/13/99 5.150 5,000,000.00 02/11/00 Santa Barbara Bank & Trust 08/31 /99 5.200 5,000,000.00 03/03/00 Santa Barbara Bank & Trust 09/13/99 5.180 5,000,000.00 03/17/00 Santa Barbara Bank & Trust 10/04/99 5.010 5,000,000.00 04/07/00 Santa Barbara Bank & Trust SANTA CLARITA 10/08/99 5.110 5,000,000.00 04/17/00 Valencia Bank & Trust CRUZ 9/23/99 5.28 1,000,000.00 9/22/00 SANTA Coast Commercial Bank SARATOGA 09/15/99 4.820 20,000,000.00 12/14/99 Saratoga National Bank 06/22/99 5.100 1,750,000.00 06/30/00 Saratoga National Bank STOCKTON 10/01/99 5.150 5,000,000.00 06/30/00 Union Safe Deposit Bank 10/15/99 4.990 10,000,000.00 01/14/00 Union Safe Deposit Bank 08/16/99 5.140 10,000,000.00 02/15/00 Washington Mutual Bank 09/17/99 5.260 15,000,000.00 09/15/00 Washington Mutual Bank TORRANCE 10/13/99 5.370 15,000,000.00 10/27/00 China Trust Bank (USA) 08/16/99 4.810 5,000,000.00 11 /15/99 China Trust Bank (USA) 09/07/99 4.950 10,000,000.00 12/06/99 China Trust Bank (USA) 09/15/99 4.860 10,000,000.00 12/10/99 China Trust Bank (USA) 09/20/99 4.730 5,000,000.00 12/17/99 China Trust Bank (USA) 09/27/99 4.840 10,000,000.00 01 /05/00 China Trust Bank (USA) 10/25/99 5.130 15,000,000.00 01/24/00 South Bay Bank 05/06/99 4.780 2,000,000.00 11 /02/99 South Bay Bank 06/15/99 5.140 2,000,000.00 12/13/99 South Bay Bank 07/21 /99 4.750 1,000,000.00 01 /31 /00 TU_ First Fidelity Thrift & Loan 10/18/99 5.090 5,000,000.00 01 /18/00 First Fidelity Thrift & Loan 10/25/99 5.120 4,000,000.00 01 /28/00 Sunwest Bank 10/12/99 4.870 3,500,000.00 01/11/00 Sunwest Bank 10/07/99 4.830 3,300,000.00 01 /13/00 Sunwest Bank 07/20/99 4.680 1,000,000.00 01 /21 /00 Sunwest Bank 10/08/99 4.830 4,000,000.00 01/21/00 Sunwest Bank 09/10/99 5.170 1,000,000.00 03/08/00 TOTAL TIME DEPOSITS AS OF OCTOBER 3191999 295759490,000.00 BANK DEMAND DEPOSITS OCTOBER 1999 ($ in thousands) DAY OF MONTH BALANCES DER BANKS WARRANTS OUTSTANDING 1 $ 429,666 $ 2,517,985 _ 2 429,666 2,517,985 3 429,666 21,517,985 4 482,236 29235,238 5 209,146 29140,174 6 2249230 199009800 7 1319870 196469324 8 179,795 11710,755 9 1799795 1,710,755 10 179,795 197101,755 11 1799795 197109755 12 829072 1,568,278 13 3079814 195159454 14 98,861 19295,853 15 437,968 193019690 16 437,968 1,3099934 17 4379968 193099934 18 5879077 193699454 19 321,562 194569686 20 253,287 1,4071956 21 4519673 1,331,369 22 124,250 1,251,278 23 124,250 1,2519278 24 1249250 1,2519278 25 1829774 1,1109114 26 346,390 1,132,331 27 223o341 190349,271 28 4309951 1,258,220 29 419,067 19086,553 30 4199067 19086,553 31 419,067 1,227,341 AVERAGE DOLLAR DAYS $ 299,526 6L eL The prescribed bank balance for October was$344,628. This consisted of $195,877 In compensating balances for services, balances for uncollected funds of $148,751 and a deduction of $15,951 for September delayed deposit credit. -- DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1604 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on October 20, 1999, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- ations, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services $ 208,462,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: (1) (2) (3) (4) (5) (6) (7) (8) (9) From To 10/18/99 10=99 10/25/99 10/29/99 11 /01 /99 11 /05/99 11 /08/99 11 /12/99 11 /15/99 11 /19/99 11 /22/99 11 /26/99 11 /29/99 12/03/99 12/06/99 12/10/99 12/13/99 12/17/99 Transactions 833,600,000 (606,500,000) 2,039,500,000 47,700,000 838,700,000 (717,200,000) (272,200,000) 83,000,000 2,361,300,000 Time Deposits in various Financial Institutions In Securities (sections 16503a (section 16430)' and 16602)' $ 30,939,110,000 $ 2,575,490,000 $ 30,332,610,000 $ 2,575,490,000 $ 32,372,110,000 $ 2,575,490,000 $ 32,419,810,000 $ 2,575,490,000 $ 33,258,510,000 $ 2,575,490,000 $ 32,541,310,000 $ 2,575,490,000 $ 32,269,110,000 $ 2,575,490,000 $ 32#352,110,000 $ 2,575,490,000 $ 34,713,410,000 $ 2,575,490,000 Estimated Total $ 33,514,600,000 $ 32,908,100,000 $ 34,947,600,000 $ 34,995,300,000 $ 35,834,000,000 $ 35,116,800,000 $ 34,844,600,000 $ 34,927,600,000 $ 37,288,900,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 208,462,000. ---- Dated: October 20, 1999 ---- 'Government Code POOLED MONEY WN E MENT BOARD: A. GJ 0 d) Although statutory authority does not limit eligibility accor to ranking or rating, previously listed general criteria elimi lesser credits. D. Certific qfDeposits 1) Maxim turity: Statutory: None, Policy: 5 'Years. 2) Maximum par va e, toW porto: None. 3) Maximum par value , ame- None. 4) Maximum par value per matu ' None. 5) Credit: a) Criteria concerning loan make-up, LDC Wosure, geographic location, market perceptions, and fina 'al cation all serve to eliminate lesser names. b) Liquidity as far as both credit risk and mar ab, in the secondary level are addressed. There must be a m et ` the moment.7� W,�� E. Collateralized Time Deposits 1) Maximum maturity: Statutory: None. Policy: 5 years. 2) Maximum par value, total portfolio: None. 3) Maximum par value per name: Statutory: Shall not exceed the net worth of the institution. Policy: Same. 4) Maximum par value per maturity: None. 5) Credit: Institutions must be rated average or better, or above a "D", by a recognized rating service utilized by the State Treasurer's Office (STO) Investment Division, and must pass a credit evaluation by the STO Staff which may include such criteria as geographic location, market perception, 20 September 4, 1998 6) 2) 3) 4) 5) loan diversity, management factors, overall fiscal soundness and the Community Reinvestment Act Rating of the institution. If, while holding a pool deposit, an institution is downgraded below acceptable levels by the rating agencies, the following steps shall be taken: a) Notify the Deposits Section to monitor collateral closely. b) Review financials and update credit report. c) Determine the appropriate plan of action which may include early termination of the time deposit, or allow the time deposit to mature. Collateral must comply with Government Code, Chapter 4, Bank Deposit Law Section 16500 (et seq.) and the Savings and Loan Association and Credit Union Deposit Law G.C. Section 16600 (et seq.). A "Fur Maximum maturity: Statutory: 180 days. Policy: 180 days. axumm par value, total portfolio: Statutory: 30%e of the current portfolio. Policy: Same. Maximum par va per name: Statutory: 10% of outstanding Policy: Same. Maximum par value per matui None. Credit: a) Rated "Prt'me" quality as defined a nationally recognized organization which rates such securities. b) Organized and operating within the United States. c) Have total assets in excess of five hundred millio dollars ($500,000,000). d) Approved by the Pooled Money Investment Board. U 21 September 4, 1998 JAN-04-2000 16:16 FROM CALIF ST. TREASURER LAIF TO 87607777105 P.01 -7Local Agency Investment Fund S AA U OF C LWY" M lw STATE TREASURER'S OFFICES 4#t;P.O. BOX 942809 SACRAWNT01, CA 94209-0001 3r " •' (916)-653-3001 (916) 654-9931 FAX TELECOPY f 10m. i DATE: Gr'� Ate44 :% �Fmm; A SwlLJL7-,4 FAx NUMBE :*7 1 'e7l ' NUMBER OF pA.GES-(NCLUDI iG COVER PAGE). If you do not rep eive total of pages transmitted, please call ' Y � P� at (916) 653-30p1. me Notes and/or cvm nts.• l OA64JAV a-1 JAN-04-2000 16:16 FROM CALIF ST. TREASURER LAIF TO Coast Comm 87607777105 P.02 Coast Commerical Un k Santa Cruz CRA R*hn CORE CAP-UNRLOSSIAS 9.27% 68 7.39% NPL /Loans 1.17% 0.86% NPAs/ASSETS 0.65% 0.57% OPERATING PROFIT 3.16% 93 1.88% ROA 1.95% 1.18% LIQUID ASSETSILIAB 12.50% 65 20.10% 30.2 Jun-99 rNIM 711A - scpr --- -1qjL Mar-99 801A Dec,98 871A Sep-98 90/A+ zoo Su riot Retu m o.on Assets 11' 1 '�� 1 ik' I��.:S`�r C 'ISS 1 ! Y � Y}ffR t 1 .J/V}4 !.� 1•'• J �j�p /' }�1 r� i-r fi '.�' �'1 r! � 4�� L•!ir Nri :�J�. I }M .IZ.Ite 1 �^Y• (�i I. +':: •:1�1r� j}jj�� .R{t � I N: } sl `.� •w � } �,1J %�'\'f l`a,1 , i�.t ��•,t ••�I 'L r, 1lJr. [ 1 1 f ( �i I.4'� J,�nj`� S CI rM� 1:<..d L�/ '� � + ,. 1'. I r S`� i'�1{ I.i 1)I. ; 1 t n ,Eti y�: ',' 1 1 1 �. ��..,�♦ 14{� � 1 II 1 1 1 �I, rJ �„��'r��l�' � �}.�: (�,' 1 .t'�f ♦�M �~I �.). .�,`f''r+ I�t Irl 1' if ;.I, �.^i:'11 C : ! J: ,, .11r\ •�1 l N 1� 1 • 1 1 ' 1� Y ��F � ,i1 y. 1. "�' ,f ,, N A . i lil .I:�:. +":'k. ��.SM.;�t"i}: e'��"cit :S :i���is� � k;fi_i`�viG� ' • O ,.A %Ver-t 10 ; Note: values are in thousands Page +I JRN-04-2000 16:18 FROM CALIF ST. TREASURER LAIF -:= r=1 - 11 To 87607777105 P.O3 Loan Portfolio Composition Commercial and Construction/Development Comm Const. & 16% Dev. 71% i_3 �e.a_ui'»—__.s:i���iY ,� r• «sdLc > _v}...�rL'�n :4_��_.'i�_1•:1. 1�1L,J�a:- 3�� .. ■tea .�+. i. i I ..��. 3 tu, �.:,.„ ..::.�t k_ ,.•.,� ;• Il I' +as :a :,d.-S,Jr.x.a ••; OIL1 Loan Portfolio Composition by Quarter Mar-98 Sep-99 Jun-99 95454 98M 85980 27.27% 30.31 % 26.49% 33.57% 36.54% 31.24% Rage 2 JAN-04-2000 16:19 FROM CALIF ST. TREASURER LAIF TO 8760?777105 P.04 BANK DEPOSIT -LAW STATE TREASURER SACRAMENT02 CALIF ORM A, JAN-04-2000 16:20 FROM CALIF ST. TREASURER LAIF TO 87607777105 P.05 Govemment Code Chapter 4 $ANK DEPOSITS Article 1. General 16500. As used in this chapter, "eligible bank" means a state -or national bank located in this State and selected by the Treasurer for the safekeeping of money belonging to or in custody of the State. Such a bank is eligible to receive deposits only to the extent that it furnishes the security required by this obapter. 16500.5 For purposes of being are eligible bank for the safekeeping of moneys belonging to, or in the custody of, the state, the phrase "state or national bank located in this state", "state or national bank", state or national bank in this state", and "state or -national banks in the state" shall include a foreign bank licensed under Article 3 (commencing with Section 1750) of Chapter 13.5 of Division 1 of the Financial Code to maintain a federal branch in this state. 16501. Under such conditions as he with the approval of the Director of Finance may fix, the Treasurer may deposit money in banks outside this State for the payment of the principal or interest of bonds, made payable outside afthis State, at the place at which the bonds are payable. 16502. All other money in the State Treasury or under the control of the Treasurer belonging to or in the custody of the State, shall, so far as possible, be deposited by the Treasurer to the credit of the State in eligible banks. Any sum in the State Treasury so deposited is deemed to be in the State Treasury. Any other amount so deposited is deemed to be held in trust by the Treasurer. 16503. Subject to the limitations of Article 4.5 (commencing with Section 16480) of Chapter 3, the Treasurer shall determine what amounts of money shall be deposited: (a) As time deposits, and the rates of interest to be received. (b) As demand deposits, and the rates of interest to be received, if any. 16504. Subject to the applicable contract, the Treasurer may call, in money from time deposits and place it in demand deposits, when necessary to meet current requirements; and time money in his possession for which there is no demand may be placed as demand deposits. 16505. Deposits in any bank shall not exceed the total of its paid. to capital and surplus. 16506. All money belonging to or in the custody of the state under the control of any state officer or employee, other than the 'treasurer, except petty cash funds authorized by the Department of Finance, shall be required to deposit with the Treasurer the same security as is required by this chapter for deposits made by the Treasurer. Banks receiving deposits from a county advanced or apportioned to.it pursuant to Section 4481 of the Food and cur Agricultural Code shall be required to see such deposits in accordance with Article Z (commencing with Section 53630) of Chapter 4, Part 1, Division 2 of Title 5. 0 :� '- JAN-04-2000 16:20 FROM CALIF ST. TREASLRER LAIF TO 87607777105 P.06 16507. A State officer is not Liable on his official bond for losses caused by the failure of -'a bank in which is made a deposit of money belonging to an inmate of a State Institution, if the officer was required or permitted by law to act as a trustee or fiduciary with respect to the money and if he made the deposit in good faith and in accordance with law. 16508. The Treasurer is not responsible for any money deposited in a bank pursuant to this chapter, and while it remains so deposited. 16509. The Treasurer is responsible for the safekeeping, management and disbursement of the certificates of deposit received and the securities, deposited with him, the interest received on deposits,, and the proceeds of any sale under this chapter. 16510. Any State officer or employee who deposits any money belonging to or in the custody of the State in arty Finarmer other than as prescribed in this chapter is subject to forfeiture of his office or employment. Article 2. Security for deposits 1652o. Security shall not be required for that portion of any deposit that is insured under any law of the United States. 16521. To be eligible to receive and retain demand or time deposits, a bank shall deposit with the Treasurer as security for such deposits, securities specified in Section 16522, and approved by the Treasurer, in an amount in value at least ld percent in excess of the amount deposited with the bank. Uncollected funds shall be excluded r& the amount deposited in a demand account with a bank when determining the security requirements for such deposits. 16522. The following securities may be received as security for demand and time deposits: (a) Bonds, notes, or other obligations of the United States, or those for which the faith and credit of the United States we pledged for the payment of principal and interest, including the guaranteed portions of small business administration loans, so long as such loans are obligations for which the faith and credit of the United States are pledged for the payment of principal and interest. (b) Notes or ' bonds or any obligations of a local public agency (as defined in the United States Housing Act of 1949) or any obligations of a public housing agency (as defined in the United States Housing Act of 1937) for which the faith and credit of the United States arc pledged fvr the payment of principal and interest. (c) Bonds of this state or any county, city, town, metropolitan water district, municipal utility district, -bridge and highway district, flood control district, school district, water district, water conservation district. or irrigation district within this state, and, in addition, revenue or tax anticipation notes, and revenue bonds payable solely out of the revenues from a revenue - producing property owned, controlled or operated by this state, or such local agency or district, or by a department, board,, agency, or authority thereof. (d) Registered warrants of this state. JAN-04-2000 16:21 FROM CALIF ST. TREASLRER LAIF TO 87607777105 P.07 te) bons, consouaarm oonas, cojazem trust aeDenwres, consonuatea aeDennires, or outer obligations issued by the United States postal Service, federal land ba As or federal intermediate credit banks established under the Federal Farm Loan Act, as amended, debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the -Farm Credit Act of 1933, as amended, consolidated obligations of the .Federal Dome Loan Banks established under the Federal Home Loan Bank Act, bonds, debentures, and other obligations of the Federal National Mortgage Association and of the_ Government National Mortgage Association established under the National Housing Act as amended, in the bonds of any Federal home loan bank established under said act, bonds; - debentures, and other obligations of the Federal Home Loan Mortgage Corporation established under the Emergency Horne Finance Act of 1970, and in bonds, notes, and other obligations issued by the Tennessee Valley Authority under the Tennessee Valley Authority Act as amended. . (fl Bonds and notes of the California Housing Finance Agency issued pursuant to Chapter 7 (commencing with Section 41700) of Part 3 of Division 31 of the Health and Safety Code. (g) Promissory notes secured by &a .mortgages and first trust deeds upon residential real property located in California, provided that: (1) Notwithstanding Section 16521, the, promisor ry notes shall at all tunes be in an amount in value at -least 50 percent in excess of the amount deposited with, the bank; (2) The Treasurer issues regulations,- establishes procedures for determining the value of the promissory notes and develops standmds necessary to protect the security of the deposits so collateralized; (3) The depository may exercise; enforce, or.waive any right or power granted to it by promissory note, mortgage, or doed of trust;. and (4) The following may not be used as security flor deposits: W Any promissory note -on which any payment is more than 90 days past due, (ii) Any promissory note secured by a mortgage or -deed of trust as to which there is a lien prior to the mortgage or deed of trust, or (iii) Any promissory note secured by a mortgage or deed of trust as to which a notice of default hasbeen recorded pursuant to Section 2924 of the Civil Code or an action has bean commenced pursuant to Section 725a of the Code of Civil Procedure. (h) Bonds issued by the State of Israel. (i) Obligations issued, assumed, ofguaranteed by the Intemational BM& for Reconstruction and Development, the Inter -American' Development Bank, the Asian Development Bank, the African Development Bank, or the Government Development Bank of Puerto Rico. (j) Any municipal securities, as deed by Section 3(a) (29) of the Securities Exchange Act of June b, 1934 (I5 U.S.C. 78, as amended), which are issued by this state or any local agency thereof. L JAN-04-2000 16:22 FROM CALIF ST. TREASURER LAIF TO 87607777105 P.08 (a) Authorize any qualified trust company, other than the depositor bank, or the Federal Deserve Bank of San Francisco or any branch thereof or any state or national bank located in any city designated as a reserve or central reserve city by the Board of Governors of the Federal Reserve Systeru to receive as his agent deposits of any securities approved under this chapter. (b) place and maintain for safekeeping as a trust deposit with any qualified trust company, other than the depositor bank, or with the Federal Reserve Bank of San Francisco or any branch thereof any securities that have been received by him under this chapter. (c) Whenever any qualif ed trust company accepts such securities under paragraph (a) or (b) such trust company, with the prior approval of the Treasurer, may keep such securities for safekeeping with any state or national bank located in a city desited as a reserve or central reserve city by the Board of Governors of the Federal Rcscrve System. 16552, The Treasurer shall take from the qualified trust company or from the Federal Reserve Bank of San Francisco or a branch thereof a receipt for any securities received by it under this article. Neither the Treasurer nor the State is responsible for the custody and safe return of such securities until they are withdrawn from the qualified trust company or from the Federal Reserve Bank of San Francisco or a branch thereof by the Treasurer. 16553. Any qualified trust Company or the Federal Reserve Bank of San Francisco or any branch thereof to which securities are delivered, either as agent or depositary for the Treasury, shall make such disposition of the securities as the Treasurer directs and is responsible only for strict compliance with written instructions given to it by the Treasurer. All such securities are at all times subject to the order of the Treasurer. 16554. The charges of any qualified trust company or of the Federal Reserve Bank of San Francisco or a branch .thereof for the handling and safekeeping of such securities are not a charge against the Treasurer but shall be paid by the owner. TOTAL P.08 0