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2001 12 12 IABI � Y P.O. Box 1504 78-495 CALLE T'AMPICO LA QUINTA, CALIFORNIA 92253 (760) 777-7000 FAX (760) 777-7101 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 December 12, 2001 - 5:30 P.M. Board Member Felice(Video Conference Location) Cisco Systems 170 West Tasman Dr., Bldg. 17, San Jose, California, 95134 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 Approval of Minutes of Meeting on November 14, 2001 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for October, 2001 VI CORRESPONDENCE AND WRITTEN MATERIAL A. City of La Quinta FY 00/01 Audited Financial Statements B. Month End Cash Report — November, 2001 C. Pooled Money Investment Board Report — September, 2001 VII BOARD MEMBER ITEMS Vill ADJOURNMENT ��s INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: December 12, 2001 ITEM TITLE: Transmittal of Treasury Report for October 31, 2001 BACKGROUND: Attached please find the Treasury Report October 31, 2001. RECOMMENDATION: Review, Receive and File the Treasury Report for October 31, 2001. Jahn M. Falconer, ginance Director T 0 0 4t!t 4 QUMM MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for October 31, 2001 DATE: November 27, 2001 Attached is the Treasurer's Report for the month ending October 31, 2001. 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 Notes Sold/Matured Other Ending Change Cash $3,302,949 (1) ($1,359,496) $1,943,453 ($1,359,496) LAW $20,027,030 166,491 0 20,193,521 166491 US Treasuries (2) $51,927,792 5,000,000 (4,000,000) (93,514) 52,834,278 906:486 US Gov't Agencies (2) $15,931,595 39,955 15,971,550 39,955 Commercial Paper (2) $0 0 0 Mutual Funds $10,963,902 35,432 (1) 10,999,334 35,432 Total $102 153 268 $5 201 923 $5 359 496 $53 559 $101 942 136�—($211,132� I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is 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. Joh M. Falconer j6atel Fit nce Director/Treasurer Footnote (1) The amount reported 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, Commercial Paper and Agency investments. Z U. g 0 L E 7 E X m E a) O U a) 7 N c m E N a) > C w 0 yN G c c 3 °1 z ED _O C N m N a) 7 o >_ E N a is m o M E `m c w c u €. « Q. 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NI G Y c cQ m� h G •.� C1 Y A a 1 Q 0 U q Cp O 3 C o O N H A N O V NIL F- ii _ q O F„ o F f`/j j ! r 1 V N .y C R •� c d Q R cC., o LL N C UULLLL In 04 000000C4 u,TCO0n000 0 O O PwC- 00m0 •, f`Nr Ln N `0Q �(D�� R(�O)�OO 00 NOD O CV Ln 0) O) 0 (D ti rNNoo� C700 COI N IC M .r.. r M NI NM O� LOL1n0 )-0N0) N 0 00 N AO Cq N t 00 CD 00000 0 00�40 M 1 �0� o CMN N M 00-0 M 0 00 0 (D C 0 (D U. r N M M r 'p g1N0 r r-OLr) O LO ch 0 M00� 04Lr)IZ- r0)000) CD0(00C�N IA N 1A `N� OInNM~ O0OrM00� P M ti 00� LL O r C,) C,) N C)000NM M r r 00 O r 00 NNN I-N10n00 �00NONti Oro 000� 00 Q 0 N C7 N 00 (DO"ItI��CA (O M 00 M u `C%j Cq O �rC, p(DNOM 0M(D(7) 0D O_ O) w O_ 0 LL 0 r tnNM'N7 (700)O'T CL w CM O r CV) +O+N{W) Ln 'TOC7 V r N (A In MIT a) 0 O) M 04 N C9 Rpm Cptn(7�rj (DOON�I�M Op O 0) 04 00 O(0n��ti 00MM(D(n0 00r00Nr--(O r r (O r r 1L O r I� c,) N M 0 0 r NOM �NLn00 W)Iq V) 0 W) ROIn QVjN00 N CN(01'.nG CnrO (D0Mt1)0o ITd•N0 r O r O p`N"r O NNM N cr)Wr- M r N M N rcf) O N LL r r W M rr I- ^0 LO NO co 00 0 CON N co WON ��00�� ���IT000 U) ap `rOf 0aid 0 (Of ti I-�0)(0D 'e 0000 CV 000 0 LL r 0 r r r N N 0 r C•9 O O r (O Cai a)rMN L(7r OtnNC7O0 WCD) 0 r 1Q0V 1Z00c)0 r Lc) 04 0 U r �rN� O) N I NNrlf)cq.4 '7 C) 000 N Off N �MON (A C'4 IZ �ON� M (D (O r On W rce) eM-N M O r Cf N t 4! C 01 � O t W > C H N C .1 c d N E X C 6. r C d H d V R '0 m u do c O toC c u m °' m O) 1/f •U 0 N d J CL N X !Q a m .0 X R mN F- 3 0) Q d ` 7 N a= r+ N t0 to ci Uu d R ca)p4)i4) ul V)W d L r O c °' 1i E 0)'o .0 a� c W rn c .a) v� a� la) L j (U rn r 0.cm�v 'a� °c'c`a0>i�w..� c E U 0! to CL (now 4) x R N +t R 0) Lu(nw000►- 0 lzi N L 0 C w G! Z •0 O IL U (0 O O (D O 0o 0 0 00 (D � (DC) � � N I� O U-) N N 00 r- cr) Cn 0 O N O r � N CA a)uj Or O N r ,vin N (D r- (D r M (6 V Cv 00 CO CDN r IT 0 N M N 0 I� r (D 0 0 OvN r 0 0 W) r �- O N O N M N 0) 0 O (o (D O c N 1� 0) Ln O O N 00 V N NW) 000 -00 r N (D r 0d cli N Vi 00 00 � N O N O N N N M D) O(DC) rj N CN 00 W) O N 1n r N r N r- O a 0) O L LL L C 0 0 00 w E A2 to y r r. 0 O C 0 N Q a 0 0 o n LL 0) N Im V1 O) R U c L R U C (Lj O o Z 0) Z N O) `) C U = c 0 0) 21 w Li Ov0 CITY OF LA QUINTA BALANCE SHEET 10/31/01 ASSETS: CITY CITY RDA RDA FA FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL POOLED CASH 9,494,757.46 11,723,756.20 101.745.35 21,320,259,01 LQRP INVESTMENT IN POOLED CASH 785,000.00 INVESTMENT T-BILUNOTES & OTHER 34,480,000.00 785,000,00 AUTO MALL CASH 34,480,000.00 LQRP CASH 30.715.45 30.715,45 BOND REDEMPTION CASH 192,904.97 1,884.28 194,789.25 BOND RESERVE CASH BOND PROJECT CASH 44,567,814.80 547,728.64 45,115,543 44 BOND ESCROW CASH PETTY CASH 1,000.00 CASH & INVESTMENT TOTAL 43,975,757.46 57,300,191.42 651.356.27 1,000.00 101,927,307.15 INVESTMENT IN LAND HELD FOR RESALE ACCOUNTS RECEIVABLE 41,026.85 60,900.00 101,926.85 PREMIUM/DISCOUNT ON INVESTMENT (54,730.69) 69,560.30 14,829.61 LQRP-ACCOUNTS RECEIVABLE 96,831.01 96,831.01 INTEREST RECEIVABLE (35,069.02) 457.128.00 422,058.98 LOANINOTES RECEIVABLE 13,489,653.69 13,489,653.69 DUE FROM OTHER AGENCIES 259,634.01 259,634.01 DUE FROM OTHER AGENCIES - CVAG 2,299,096.69 2,299,096.69 CVAG ALLOWANCE (2,299,096.69) (2,299,096.69) DUE FROM OTHER GOVERNMENTS 0.370.37 DUE FROM OTHER FUNDS 1,040,973.94 651,038.04 1,692,011.98 DUE FROM RDA 8,497,550.20 8,497,550.20 INTEREST ADVANCE -DUE FROM RDA 3,265,434.38 3,265,434.38 ADVANCES TO OTHER FUNDS 56,483.22 56,483.22 NSF CHECKS RECEIVABLE 3,569.61 3.569.61 ACCRUED REVENUE 833.40 833.40 FIXED ASSETS 20,711,742.00 20, 711,742, 00 ACCUMULATED DEPRECIATION 711,534.48 711,534.48 TRAVEL ADVANCES 3,607.29 3.607.29 EMPLOYEE ADVANCES PREPAID EXPENSES RECEIVABLE TOTAL 13,790,014.64 20,711,742.00 14,825,944.44 49,327,701.08 WORKER COMPENSATION DEPOSIT RENT DEPOSITS UTILITY DEPOSITS 75.00 75.00 MISC. DEPOSITS 2,100.00 2,100.00 DEPOSITS TOTAL 2,175.00 2,175.00 GENERAL FIXED ASSETS 9,988,279.05 9,988,279.05 ACCUMULATED DEPRECIATION AMOUNT AVAILABLE TO RETIRE L/T DEBT 3,395,117.03 3,395,117.03 AMOUNT TO BE PROVIDED FOR L/T DEBT 951 847.65 80 866 860.97 7,750,000.00 89 568 708.62 TOTAL OTHER ASSETS 951,847.65 9.988.279.05 84,261,978.00 7,750,000.00 102,952,104.70 TOTAL ASSETS 57,767,947.10 20,711,742 00 951,847.65 72,126,135.86 9,988,279.05 84,261,978.00 651,358.27 7,750,000.00 254,209,287.93 LIABILITIES: ACCOUNTS PAYABLE 13,741.33 13,741.33 DUE TO OTHER AGENCIES 641,650.69 730,884.56 1,372,535.25 DUE TO OTHER FUNDS 273,804.01 1,797,658.97 2,071,462.98 INTEREST ADVANCE -DUE TO CITY 11,383,537.00 11,383,537,00 ACCRUED EXPENSES 16,468.50 16,468.50 PAYROLL LIABILITIES 7,890.64 7.890.64 STRONG MOTION INSTRUMENTS 1,182.34 1,182.34 FRINGE TOED LIZARD FEES 78,981.50 78,981.50 SUSPENSE DUE TO THE CITY OF LA QUINTA PAYA13LES TOTAL 1,017,250.51 13,928,549.03 14,945,799.54 ENGINEERING TRUST DEPOSITS SO. COAST AIR QUALITY DEPOSITS LQRP DEPOSITS 14,499.00 14,499.00 DEVELOPER DEPOSITS 877,923.34 877,923.34 MISC. DEPOSITS 439,448.65 439.448.65 AGENCY FUND DEPOSITS 1,413,794.79 1,413,794.79 TOTAL DEPOSITS 2,731,166.78 14,499.00 2,745,665.78 DEFERRED REVENUE 387.604.00 11,378,904.00 11,766 508 00 OTHER LIABILITIES TOTAL 387,604.00 11,378,904.00 11,766,508.00 COMPENSATED ABSENCES PAYABLE 373,536.65 373,536.65 DUE TO THE CITY OF LA QUINTA 578,311.00 189.725.50 768,036.50 DUE TO COUNTY OF RIVERSIDE 10,989,847.00 10,989,847.00 DUE TO C.V. UNIFIED SCHOOL DIST. 8,747,405.50 8,747,405.50 DUE TO DESERT SANDS SCHOOL DIST. BONDS PAYABLE 64,335,000.00 7,750,000.00 72,085,000.00 TOTAL LONG TERM DEBT 951,847.65 84,261,978.00 7,750,000.00 92,963,825.65 TOTAL LIABILITIES 4,136,021.29 951,847.65 25,321,952.03 84,261,978.00 7,750,000.00 122,421,798.97 EQUITY -FUND BALANCE 53,631,925.80 20,711,742.00 46,804,183.83 9,988,279.05 651,358.27 131,787,488.95 TOTAL LIABILITY & EQUITY 57,767,947.09 20 711 742 00 951,847.65 72,126,135.86 9,988,279.05 84,261,978.00 651,358.27 7,750,000.00 254,209,287,92 CASH & INVESTMENT TOTAL 101,927,307.15 PREMIUMIDISCOUNT ON INVESTMENT 14-929.61 TOTAL 101,942,136.76 �9`V INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: December 12, 2001 ITEM TITLE: City of La Quinta Fiscal Year 2000-01 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. Jbhn M. Falconer, finance Director r- t4o CITY OF LA QUINTA _ La Quinta, California _ Comprehensive Annual Financial Report Year Ended June 30, 2001 CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 2001 Prepared by FINANCE DEPARTMENT JOHN M. FALCONER Director of Finance CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2001 TABLE OF CONTENTS Page — INTRODUCTORY SECTION Letter of Transmittal i — List of Principal Officials x Organizational Chart xi Certificate of Award for Outstanding Financial Reporting (CSMFO) xii Certificate of Achievement for Excellence in Financial Reporting (GFOA) xiii FINANCIAL SECTION Independent Auditors' Report 1 _ Management's Discussion and Analysis (Required Supplementary Information) 3 Basic Financial Statements: — Government -wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements: Governmental Funds: Balance Sheet 18 Reconciliation of the Balance Sheet of Governmental Funds _ to the Statement of Net Assets 20 Statement of Revenues, Expenditures and Changes in Fund Balances 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Proprietary Fund: — Statement of Net Assets 25 Statement of Revenues, Expenses and Changes in Net Assets 26 Statement of Cash Flows 27 Fiduciary Funds: Statement of Fiduciary Assets and Liabilities — Agency Funds 28 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2001 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION. (Continued Notes to the Basic Financial Statements 29 REQUIRED SUPPLEMENTARY INFORMATION: Notes to Required Supplementary Information 71 Budgetary Comparison Schedules: General Fund 72 Low/Moderate Income Housing Project Area No. 2 Fund 74 SUPPLEMENTARY SCHEDULES: Non -Major Governmental Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 80 Non -Major Special Revenue Funds: Budgetary Comparison Schedules: State Gas Tax Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 86 Federal Assistance Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 87 Lighting and Landscape Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 88 State Law Enforcement Block Grant (SLEBG): Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 89 Quimby Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 90 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2001 TABLE OF CONTENTS, (Continued) Page Public Safety Fund: — Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 91 Village Parking Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 92 _ South Coast Air Quality Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 93 _ Local Law Enforcement Block Grant (LLEBG): Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 94 Low/Moderate Income Housing Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund — Balances — Budget and Actual 95 Low/Moderate Bond — Project Area No. 1 Fund: _ Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 96 Low/Moderate Bond — Project Area No. 2 Fund: — Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 97 Major and Non -Major Debt Service Funds: Budgetary Comparison Schedules: Financing Authority Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 100 _ Redevelopment Agency Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 101 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2001 TABLE OF CONTENTS, (Continued) Page Redevelopment Agency Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 102 Major and Non -Major Capital Projects Funds: Budgetary Comparison Schedules: Infrastructure Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 104 Capital Improvement Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 105 Transportation Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 106 Parks and Recreation Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 107 Civic Center Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 108 Library Development Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 109 Community Center Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 110 Street Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual III CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2001 TABLE OF CONTENTS, (Continued) Park Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Assessment District 97-1 La Quinta Norte Construction Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Assessment District 2001-1 Phase VI Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Financing Authority Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Redevelopment Agency Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Redevelopment Agency Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Agency Funds: Combining Balance Sheet Statement of Changes in Assets and Liabilities Capital Assets Used in the Operation of Governmental Funds: Schedule by Source Schedule by Function and Activity Schedule of Changes by Function and Activity Page 112 113 114 115 116 117 120 122 126 127 128 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2001 TABLE OF CONTENTS, (Continued) Table No. Page STATISTICAL SECTION General Fund Expenditures by Function 1 130 General Fund Revenue by Source 2 131 Property Tax Levies and Collections 3 132 Schedule of Net Taxable Value 4 133 Property Tax Rates - Direct and Overlapping Governments 5 134 Special Assessment Billings and Collections 6 135 Schedule of Direct and Overlapping Bonded Debt 7 136 Computation of Legal Debt Margin 8 137 Revenue Bond Coverage 9 138 Demographic Statistics 10 139 Property Value, Construction Activity, and Bank Deposits 11 140 Principal Taxpayers 12 141 Major Employers 13 142 Schedule of Insurance in Force 14 143 Miscellaneous Statistical Data 15 144 General Fund Balance Trends 16 145 P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 November 20, 2001 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California (760) 7 7 7 - 7 0 0 0 FAX (760) 777-7101 FY 2000-01 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL The Fiscal year 2001 Comprehensive Annual Financial Report (CAFR) differs significantly from prior year CAFR reports. This year's CAFR incorporates the financial and reporting requirements of Government Accounting Standards Board Pronouncement No. 34 — The New Financial Reporting Model. The City has elected early implementation of this accounting pronouncement, which in its most elementary terms attempts to present the financial position and activities of a government organization on a basis comparable to a for- profit organization. We want to thank the City Council for their support in early implementation of this pronouncement; our Certified Public Accountants, Conrad & Associates, for their knowledge and expertise; our infrastructure consultants, Conrad Business Services for their valuation services; and other Departments, particularly the Public Works Department, for their infrastructure data. We are pleased to present the 2001 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, 2001. 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 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. Honorable Mayor, City Council, and City Manager Document Structure The CAFR is presented in three sections: • Introductory; • Financial; and, • Statistical. The introductory section includes this transmittal letter, the City's organizational chart, a list of principal officials, and awards for excellence in financial reporting. The financial section consists of the audit opinion, management's discussion and analysis of the financial statements and footnotes, and required supplementary information. 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, Sunline Transit, Palm Springs Desert Resorts Convention and Visitors Authority, and the Desert Regional Resorts Airport Authority. Background 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 January 1, 2001 was 26,300, an increase of 135% from 1990. • Retail Sales of $235 million, a 580% increase from 1990; • Taxable Sales of $295 million, a 341 % increase from 1990; • Assessed Valuation of $3.194 billion, a 149% increase from 1990; and, • Hotel Room sales over $39.6 million, a 98% increase from 1990. The City area includes the beautiful La Quinta Hotel, several world class golf resorts, numerous single family and multi -dwelling units and light commercial industries. The City has a beautiful 10,000 sq. ft Senior Center for City residents. The Desert Sands Unified School District provides educational opportunities for school -age children in La Quinta. ii Honorable Mayor, City Council, and City Manager The City has been experiencing rapid growth in population. During 2000, the population grew 12.7%, 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. The total number of full time authorized positions for 2000-2001 is 72.75. In addition to the 261,300 permanent residents, approximately 12,600 seasonal residents spend three to six months in the City. 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 Communitv Development - Administration - Planning - South Coast Air Quality - Redevelopment iii Honorable Mayor, City Council, and City Manager 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 Visitors Authority, City promotion through 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 Company, public transit through Sunline Transit Agency, and cable service through Time Warner. Significant Events and Accomplishments During 2000-01 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: Real Estate Single family construction accounted for $258 million in building permits while multifamily construction totaled $12 million last year. La Quinta issued $1.26 billion worth of building permits during the last ten years, averaging over $126 million per year. In 2000, construction increased 21 % to over $304 million, a record for annual construction in the City. Three auto dealers have opened at the Centre in La Quinta and an additional six -dealership pads, plus 400,000 square feet of retail, have been approved by the City. Several other large commercial projects are moving forward, including Jefferson Plaza, a 218,000 square foot retail center, Washington Square, a 775,000 square foot retail center, and La Quinta Court, a specialty shopping center on Highway 111 anchored by high -end grocery and restaurant services. Other large commercial projects include Point Happy, anchored by two restaurants under development, and approval for a 110,000 square foot shopping center. The La Quinta Corporate Center, including a 160-room hotel with restaurant, has been approved, and a new World Gym and light industrial buildings are under construction. The development of quality residential communities, including PGA West, Rancho La Quinta and the Traditions has increased the assessed valuation of the City. Several other large projects have been approved and are moving forward. Since 1990, assessed valuations have grown to $3.19 billion in 2000. In the last decade, assessed values have increased 149%, substantially higher than the region's growth rate of 53%. Housine 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 and available housing inventory. iv Honorable Mayor, City Council, and City Manager The U.S. Census has established the median home price at $140,000, which is lower than averages for San Diego and Los Angeles Counties and the State of California. There were 1,381 housing units built during 2001, which brings the number of total units within the City to 13,522. The 13,522 units consist of 10,252 detached single family residences, 2326 attached single family residences, 697 multi family residences, and 247 mobile homes. Tourism La Quinta is well known for its many championship golf courses. The City is home to 16 championship courses, and many more are in the planning or development stages. In addition to quantity, La Quinta has some of the highest rated courses in the world of golf. Various golf tournaments, including the prestigious Bob Hope Chrysler Classic, are exposing La Quinta internationally as a quality destination and golf resort area. 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. Hotel room sales in La Quinta enjoyed dramatic growth to a record $40 million in 2000. The La Quinta Hotel, the second largest destination resort in the Coachella Valley, was the largest contributor to this increase. The City increased funding for the Palm Springs Desert Resort Convention Bureau for tourism promotion and increased funding for marketing services. Capital Improvements _ The City completed over $12 million in capital improvements during 2000-01. Projects completed or nearing completion include the Washington Street Bridge, Phase 1 Jefferson Street improvements, completion of various road median projects, City Entrance Monuments, and several park and recreation improvement projects. Several significant projects are continuing, including museum expansion, Village/Cove neighborhood improvements, Civic Center Campus development, and several park and recreation capital projects. 'The City's Capital Improvement Program (CIP) continues to increase to meet the demands of growth, and totals $47.2 million for the 2001-2002 program. This major commitment in infrastructure will continue to provide for both the current and future growth that the City has experienced. Community Facilities The City completed the design phase of the museum expansion project. Phase I construction of the Community Park and design for a new library are also in process, and continue to enhance community facilities available - to La Quinta residents. v Honorable Mayor, City Council, and City Manager City Operations The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 2000-2001: Initiated a Geographic Information System (GIS) traffic analysis program, continued development of GIS data base for city-wide planning, and obtained aerial photos of City boundaries and planning areas for GIS ; Implemented an enhanced promotional program, including "City in Progress" ad campaign, supporting local businesses; Implemented an improved Optical Imaging system for document storage and record retrieval; Received several grant awards for public safety, tire recycling and bicycle lanes; Received awards in excellence for financial and budget reports; Implemented upgrades in management information services, including additional servers, enhanced security, and improvements in City web site; Completed on and off -site improvements, and Phase I of the Redevelopment Agency housing project on Avenue 48, and initiated the second housing project on Avenue 48; Continued update of General Plan and Housing Element, and completed the first draft of City's Design Standards for development and traffic. Future developments Include: continued commercial development along the Highway 111 corridor, redevelopment financed property development on Avenue 48 and completion of residential projects in the northern part of the City. Financial Information GASB 34 requires a separate "matter of fact" discussion of the City's financial condition that can be found in the required supplementary information section entitled "Management Discussion and Analysis (MDA)". The operating results for the City of La Quinta for FY 2000101 were very good and our financial condition is the strongest since incorporation. The City will be faced with future funding challenges that will require a dedicated effort to fulfill our economic development plan to garner new and additional revenues. Management believes that the following items will impact future budgets of the City of La Quinta that will have to be addressed with future revenues or the use of our reserves: The need for additional police services — As the population grows the City will be faced with the need to add additional public safety officers. The need for additional fire services — Coupled with the growth in population and the desire by fire professionals to have three and four person crews, the City will need to address the need for additional fire service resources. The need for a third fire station — The City has two fire stations and the City has made a commitment to build and maintain a third fire station in the north part of the City. The need to fund additional landscaping costs — As a result of Proposition 218, the City has been limited on the vi Honorable Mayor, City Council, " and City Manager use of City -Wide Lighting and Landscape Assessment District funding. The City has continued to add additional street medians, has plans for a Civic Center Campus, and plans for an 18 acre lighted park that will require funds to maintain. The need to pay for the operations of additional public facilities — In the five year Capital Improvement Plan the City has plans to build a municipal library, expand the museum, and expand City Hall. The following paragraphs outline several of the major polices of the City and attempt to supplement and not supplant the MDA which can be found later in this report. 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. 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 that 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. At year end, the City has prepared the required entries necessary to report the City financial position and activities on an accrual basis of accounting which recognizes revenues when earned and expenses when 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. 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. vii Honorable Mayor, City Council, and City Manager Budgetary Controls - 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 year's 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. Gann Limit - Appropriations Subject to the Limit - 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. Risk Management - The California Joint Powers Insurance Authority (CJPIA) was formed 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 workers 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. City Retirement Costs - The City is a member of the California Public Employers Retirement System (PERS). Employer contribution rates are reviewed and adjusted annually to achieve full funding for retirement benefits by the year 2011. 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. 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. Honorable Mayor, City Council, and City Manager Certificate 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 has received the GFOA and CSMFO awards in prior years and are hopeful that these statements continue to receive these awards. Acknowledgments This report could not have been accomplished without the dedicated services of the Finance Department staff. Recognition is given to Amy Swan -Draper, Accounting Manager for her efforts in preparing the introductory and financial sections, Vianka Orrantia, Secretary for her report preparation skills and Sharon Christensen, Misaela Mendoza, Diane Martin and Pat Parker for their diligence in processing most of the transactions reported upon in the financial section of this report. Again, we also appreciate the City Manager and City Council for providing the resources necessary to prepare this report and for their role in preserving the City's framework of internal controls and again wish to express our appreciate for the efforts of the Conrad & Associates, CPA's audit team, for their professionalism in conducting the annual audit for the City of La Quinta. Respe fully submitted, ohn M. Falcone Finance Director and Treasurer ix City of La Quinta Directory of Officials June 30, 2001 CITY COUNCIL John Pena, Mayor Stanley Sniff, Mayor Pro Tern Terry Henderson, 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 Kathy Jenson, City Attorney Dodie Horvitz, Community Services Director June Greek, City Clerk Chris Vogt, Public Works Director/City Engineer C N N C C O O (/1 Z N O C omo� as _O m m }m N m m$cco� C, m C CC C c �o� .aaa E a, E v a� N C o m W a N a8123 Cl Y N N C ci Hcm U 3 CVO m G p •L W O W 'O C iC V N _ p S m Q u N CDNaQ Q N m N 0i C O N Z R � m Q ra C C C g Q ,c N n u N CY C'1 >- m a c � c _ u LL 'Q J•m m A> A LL a5 p 1�_/1 0 LL �� L U LL$ a C.)Ll t C O ,a N _ C Q C O GF C M Q EN y C c N H C `m NO d Q d Y '. m 2� Eg v ��7 W a Zm c'9 y m H C c d N E L m R L y d �a �co a C H L E La L o cUU� � c �- ro �N2E �CQe� a �� d V y �j NtsNC m� C O S V :S H Eo-. ti � d 9 Q �Q US H Q O O Q a E d O U � o •y O C � 0 � c �ct'�c� u m =�mmEc�cOEppp pp d � � Ci d C U >.—mC y � � C C 81. � C Cp p Cyan >,a0�$Umym c_ U U(��UU� C Q V V � QQ QC C o av �mCD V � mN U« m— O �ac O>m V LL a C N N N XZ Aw LJ 9-1 a 0 it X11 Certificate of Achievement for Excellence in Financial Reporting Presented to City of La Quinta, California W For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2000 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 OfFjc - �� or WED STA � "a to � coR% rOlt4�04prdent c�t�ce Executive Director. (This page intentionally left blank) CONRADAND CERTIFIED PUBLIC ACCOUNTANTS 1100 MAIN STREET, SUITE C ASSOCIATES, L.L.P. IRVINE, CALIFORNIA 92614 (949) 474-2020 Fax (949) 263-5520 The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report We have audited the accompanying basic financial statements of the City of La Quinta, California as of and for the year ended June 30, 2001, as listed in the accompanying table of contents. These basic financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 basic 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, 2001, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in -- conformity with accounting principles generally accepted in the United States of America. As discussed further in the notes to the basic financial statements, the accompanying financial _ statements reflect certain changes in the presentation of financial data required as a result of the implementation of GASB Statement No. 33 and 34 for the year ended June 30, 2001. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principals of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was made for the purpose of forming an opinion on the basic 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 basic financial statements of the City of La Quinta, California. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The scope of our audit did not include the statistical schedules listed in the table of contents and we do not express an opinion on them. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION In accordance with Government Auditing Standards, we have also issued a report dated August 17, 2001 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. L!�«sue a.-,�/ �soti:a�Fa �`•� August 17, 2001 2 Management Discussion and Analysis — The Management Discussion and Analysis (MDA) is intended to provide the reader of the statements with a concise analysis of the financial results and financial position of the City of La Quinta. The New Reporting Model — The impact of the new reporting model on the financial statements constitutes the biggest change in the way governmental activities have previously been reported. We have to return to the original "blue book" in the mid 1980's to recall such a major change in the accounting and reporting of governmental activities. Overall, we believe that from a financial reporting standpoint, the preparation of this document was one of the most challenging for the governmental accounting profession. As will be discussed later in detail, most discussion on the new reporting model has focused on infrastructure reporting. While time consuming and tedious, to our surprise this area did not have the challenges involved that accounting for revenues under Government Accounting Standards Board (GASB) 33 and accounting for advances between the City and the Redevelopment Agency had. Two new statements have been presented entitled the Statement of Net Assets and Statement of Activities. The purpose of the Statement of Net Assets is to report on the financial and capital resources for all governmental funds in a single statement. The purpose of the Statement of Activities is to report on the activity of the government's operations and is presented in a format that reports the net (expense)/revenue of its various functions. In addition, the Governmental Funds Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances have been classified into major and non - major funds. These major and non -major funds are determined based upon criteria set forth by the GASB. The GASB believed that this major and non -major classification _ allows the reader to review the significant funds in one report rather than have the reader determine what is a major fund and what is non -major. Executive Summary The operating results for the City of La Quinta for FY 2000/01 were very good and our financial condition is the strongest since incorporation. As a fast growing municipality, the City of La Quinta has been able to add to its general _ reserves with both increases in develop related activities and on -going taxes and fees for FY 2000/01. The future challenge will be to insure that these reserves and the on -going taxes and fees will meet the demands for public services that a community at build out will require. 3 Background In this MDA section, the Finance Director departs from the past, which required a "just present the reader with the facts" approach and enters into the future with a requirement to "tell it like it is". The analysis also is required to convey the financial results with an element of subjectivity. This subjectivity is based upon the Finance Director's knowledge of the City's "business cycle" and the possible economic factors that may impact the City. The Government Accounting Standards Board is the rule making body that promulgates or . sets the accounting rules. This rule making body is slowly but surely moving toward a standard of accounting based upon the full accrual basis of accounting, which is required for for -profit companies. To accomplish this move toward a full accrual basis of accounting, many of the government accounting software providers are incorporating features that will generate two separate sets of statements. One set is produced on the modified accrual basis of accounting and the other on the full accrual basis of accounting. The intent of this software is to capture the data throughout the year necessary to push a button at the end of the year and print out a statement based upon the modified accrual basis of accounting and another statement based upon the full accrual basis of accounting. The City accounting system is based upon the modified basis of accounting throughout the year. Once a year, at year-end, the City prepares memo entries to convert the modified basis of accounting throughout the year to the full accrual basis of accounting. This conversion is prepared on a spreadsheet program and is given to our outside auditors. No formal entries are entered into the accounting system to convert to the accrual basis of accounting. Management believes this less formal conversion process is simpler, more flexible and less costly for the City of La Quinta. You may be asking yourself how significant is the change in the two reporting methods? The following table summarizes the differences: Description Modified Accrual Accrual Change Assets 99,767,266 393,307,247 293,539,981 Liabilities 32,397,271 99,749,971 67,352,700 Revenues 59,90006 52,338,164 (7,562,442) Expenditures 54,546,974 27,841,749 (26,705,225) Fund Balance/Net Assets 67,369,995 293,557,276 226,187,281 Revenues over expenditures 5,353,632 24,496,415 19,142,783 It is apparent that the change in accounting methods dramatically changes the way the reader of the financial statements interprets the financial condition and operations of the City. Management will attempt to present the reader with an analysis that is simpler to understand and draws distinctions between the two accounting methods where possible. 4 The GASB requires that governmental agencies provide two years worth of financial information so that the reader will be able to draw comparisons on the results of operations and the financial position from year to year. Recognizing the additional efforts required under this new reporting requirement, GASB has allowed municipalities the option of reporting only a single year's worth of information in the first year of implementation. The City of La Quinta has exercised this one-year option. Accordingly, since only one year's worth of data is presented, this year's MDA will not reflect prior years' data. Management will, therefore, limit its discussions of prior year's events to more historical terms and will not present charts with data. Assets The following chart lists a condensed Statement of Net Assets for the fiscal year ending June 30, 2001. In future years, this chart will contain a current to previous year comparison. CITY OF LA QUINTA Condensed Statement of Net Assets Governmental Activities 2001 Current and other assets $ 83,113,424 Capital assets 310,193,823 Total assets 393,307,247 Current and other liabilities 6,975,872 — Long term liabilities 92,774,099 Total liabilities 99,749,971 Net assets Investment in capital assets, net of related debt 217,419,724 Restricted 45,438,930 Unrestricted 30,698,622 Total net assets $ 293,557,276 Emplo ewes. _ The most important asset of the City of La Quinta is its employees. While not quantified on the books, the City has 72.75 authorized full time equivalent positions to provide the services required by the community. 5 Cash and Investments The City of La Quinta has cash and investments on hand to meet both immediate and long-term needs. The City Finance Director serves as the Treasurer and is appointed by the City Manager. The City has a seven member Investment Advisory Board. It is appointed by the City Council and meets monthly to review the Treasurer's Report and provide valuable assistance to the Treasurer on current trends and topics in this area, as well as annually reviewing the Investment Policy. The City has a conservative investment policy, which is more restrictive than the policy limitations set forth in 53601 of the Government Code of the State of California. The Treasurer is required to prepare a monthly Treasurer's Report that certifies that he/she believes that the City has, to the best of its ability, the cash to meet its obligations for the next six months. During FY 00/01, the City has met this six- month liquidity requirement. In addition, the City has a two-year (730-day) limitation on the maximum maturity of our investments and has a buy/hold investment strategy, which does not promote actively selling securities before their maturity, except for liquidity purposes. During FY 00/01, the City did not sell an investment before maturity. Therefore, the financial statements do not report any gains or losses on investments. The following table lists the earnings rates and average maturity of the portfolio: Summary of FY 00/01 Interest Rates/Earnings Month 6 Month Benchmark (%) Average Maturity Days Pool Interest Rate (%) Fiscal Agent Interest Rate (%) Total Rate All Earnings (%) July 2000 6.28 220 6.37 6.17 6.31 August 6.38 232 6.43 6.11 6.35 September 6.26 231 6.34 5.92 6.25 October 6.33 209 6.34 6.20 6.31 November 6.32 181 6.46 6.20 6.40 December 5.74 156 6.46 5.97 6.38 January 2001 5.03 124 6.36 5.03 6.04 February 4.66 110 6.31 5.06 6.08 March 4.27 101 5.95 4.82 5.79 April 3.79 80 5.86 4.10 5.53 May 3.55 76 5.20 3.60 4.96 June 2001 3.34 65 4.98 3.50 4.70 Average 5.16 149 6.09 5.22 . 5.93 Ending cash balances - June 30, 2001 Total Interest Earnings for the year $73,532,907 $5,135,466 During FY 00/01, interest rates dropped throughout the year with an inverted yield curve. The average maturity of the portfolio was shortened to take advantage of the higher T yields on shorter -term investments. The Treasurer exceeded the benchmark 6 month Treasury Bill rate in 9 of the 12 twelve months and overall for the year. Interest earned on all funds totaled $5.1 million and the total portfolio at year-end increased to $73.5 million. Receivables/Advances to Other Funds The City of La Quinta does not have large receivable balances. We do not have any enterprise activities such as a water or sewer department, which typically generate receivable balances. One of the interesting impacts of GASB 34 is the accounting for advances to and from other funds which will be discussed in greater depth under the Advances from other funds section of the MDA. The City has advanced funds to the City Redevelopment Agency to promote economic activities within its boundary areas. The advances have no specified due date and accrue interest at 10% per year. The intent is to repay these advances with interest before the expiration of the Redevelopment Project Area Plan in approximately thirty years. In addition, an outstanding advance from the General Fund to the Capital Projects Fund for Public Improvements near Adams St and Hwy I I I has been made. The outstanding balance as of June 30, 2001 is $ 12,024,009. Under GASB 34 these advances to and from other funds have been eliminated from the Statement of Net Assets. Capital Assets The most debated topic of the new reporting model is the recording of fixed assets including the City infrastructure assets and accumulated depreciation. The primary purpose of including infrastructure assets in the financial statements is to report the total amount of improvements and the amount that these assets have been depreciated. At year-end, General Fixed Assets were 28% depreciated, Internal Service assets were 51 % depreciated and infrastructure improvements were 57.5% depreciated. The higher depreciation percentage indicates that the assets are older and will require accelerated future expenditures in the future to replace aging assets. Last year, the City recorded its fixed assets, except for internal service assets, in the _ General Fixed Asset Group of Accounts and did not depreciate these assets. This year, the assets have been included in the Statement of Net Assets and have been depreciated. The City has an internal service fund for the replacement of equipment and major capital items such as the roofs and air conditioners in the City Hall and Senior Center. In addition to the general fixed assets, such as buildings, parks, computers and internal service assets, the City has included its infrastructure assets in the Statement of Net Assets. Infrastructure assets included in the Statement of Net Assets were City maintained streets, street medians, curb and gutter, traffic signals, sidewalks, bridges, art- work, sound walls, bike paths, storm drains and retention basins. Infrastructure assets not included in the Statement of Net Assets were the construction costs of State Highway 111, private streets — generally behind gates, and public water, sewer, electricity, gas and cable utilities maintained by others. Infrastructure assets, except for land, have been depreciated to reflect a net infrastructure amount. In addition to the fixed assets and infrastructure assets, capital assets also include construction in progress. Under the 7 modified accrual basis of accounting, the costs of these construction projects have previously been expenditures and not reported in the Statement of Net Assets. Under the new reporting model, these costs have been reported in the Statement of Assets. Projects still in progress at year-end included the Phase 1 Jefferson Street project, Assessment District 2000-1 improvements including the Village, the Civic Center Project, and the Miraflores Housing and Apartment Project. The following chart details the fixed assets, infrastructure assets, and construction in progress as of the end of the fiscal year: CITY OF LA QUINTA Fixed Assets and Construction in Progress 2001 Accumulated Depreciated Type Life years Total Depreciation Remaining Percent Fixed Assets Land N/A $14,904,131 N/A $14,904,131 General Fixed Assets 5-30 15,795,890 4,478,852 11,359,999 28.35% Internal Service Fixed Assets 3-15 1,451,036 739,501 711,535 50.96% 32,151,057 5,218,353 26,975,665 Right of Way (ROW) N/A 228,992,358 N/A 228,992,358 Art in Public Places N/A 1,018,163 N/A 1,018,163 Subtotal 230,010,521 N/A 230,010,521 Street Pavement 20-25 44,982,465 34,179,428 10,803,037 Curbs/Gutters 50 6,969,878 2,390,746 4,579,132 Sidewalks 20 5,080,051 4,210,166 869,885 Median 50 5,193,405 1,373,020 3,820,385 Parking Medians 50 21,301 8,094 13,207 Bridges 35 9,933,145 1,508,311 8,424,834 Traffic Signals 20 3,847,342 1,033,242 2,814,100 Bike Paths 20 642,304 199,797 442,507 Sound Wall 20 74,200 3,710 70,490 Retention Basin 10 957,019 730,456 226,563 Storm Drains 50 2,028,035 229,452 1,798,583 79,729,145 45,866,422 33,862,723 57.53% 309,739,666 45,866,422 263,873,244 Construction in Progress 19,387,875 Total $310,193,823 Liabilities The City of La Quinta has incurred both short and long term debt. Most readers are familiar with accounts payable, accrued salary, payroll taxes and developer deposits, while others may be familiar with advances from other funds and bonds payable. The City of La Quinta is current in meeting its short and long-term commitments and there is no known violation of any bond indenture covenant. In addition, all bonds have been insured and carry a "AAA" rating by a major rating agency. Subsequent to the balance sheet date of June 30, 2001, Redevelopment Agency (RDA) Project Area 1 issued $48 million of "AAA" insured Tax Allocation Bonds. At the RDA's request, they asked Standard and Poors to rate Project Area 1 on a stand-alone basis, which is without bond insurance, and are pleased that it received an "A" "rating. Similar stand-alone ratings for the City of La Quinta, RDA Project Area 2 and the Financing Authority are not available. Advances From Other Fund The General Fund has advanced funds to both the Redevelopment Project Area 1 and 2 Debt Service Funds. The City created the La Quinta Redevelopment Agency (RDA) and its two project areas in accordance with State law to promote economic activities, remove blight and provide low and moderate housing to its residents using property taxes generated in each of the Project Areas. The Redevelopment Areas were created to keep property tax revenues generated in its boundaries for projects in the project areas and to be able to accelerate projects by issuing bonds and incurring other debt. Examples of the projects funded to date include flood control projects at the top of the Cove, and resurfacing of street, curb, and gutter in the Cove and Westward Ho areas. These types of projects could not have been accomplished without the use of advances and bonds. As of June 30, 2001, the City of La Quinta has advanced the RDA Project Debt Service Area 1 $4,973,326 and Debt Service Project Area 2 $6,961,249. The advances carry a 10% interest rate with no specified repayment date. Since the RDA Board is comprised of the City Council, GASB requires that the activities of the RDA be included with the activities of the City. In the past these advances were recorded in the General Long Term Debt Group of Accounts. Under the new reporting model these advances have been recorded as liabilities in the individual fund statements. As a result of this accounting change, both of these RDA Debt Service Area 1 and 2 funds have negative fund balances of $ (541,087) and $(6,258,943), respectfully. While it is preferable to have funds with positive balances, it should be noted that these negative balances were a result of the City advances. These advances have no specified re- payment date and it is not the intent of Management to request repayment of the advances in the near future. Rather, Management will seek future repayments from the debt service funds when fund balances are available, which would be sometime before the project areas expire — in approximately 30 years. Under GASB 34 these advances to and from other funds have been eliminated from the Statement of Net Assets. Long Term Liabilities Long term liabilities consist of notes, bonds and pass -through agreements that have been separated into the amount due in the next year and the amount due beyond. 9 In order to accelerate capital or housing projects, the City and RDA have issued bonds. These bonds have also been insured to take advantage of lower debt service costs and provide the investor with an added comfort level. In addition, as with a home mortgage, we have refunded several of our bond issues to take advantage of lower interest rates, which in turn has resulted in lower debt service costs. The Statement of Net Assets has a long-term liability amount due within one year of $11,399,079 and an amount due in more than one year of $81,375,020. The $11.4 million in one-year debt service is more than the normal annual debt service. The $11.4 million debt service includes an advance pass through payment of $8.6 million to the County of Riverside for RDA Project Area 1. This payment was made earlier than required, at the sole option of the RDA, from bond proceeds of a $48 million RDA Tax Allocation Bond Issue executed after year-end. NET ASSETS AND INTERNAL SERVICE FUNDS The objective of the Statement of Net Assets is to provide a consolidated summary of the City's assets, liabilities and net assets that reflects the City's fiscal worth and liquidity as a whole. Over time the increases or decreases in total net assets will reflect the health of the City. In order to report the unrestricted net assets of the City, the City must subtract from its assets related liabilities, net investments in capital assets and restricted net assets. Under the new reporting model, the total unrestricted net assets of the City of La Quinta, RDA and Financing Authority is $30,698,622 as reported in the Statement of Net Assets. As in the past, Management has elected, as detailed in the footnotes, to further restrict and designate general fund balances that have not been reflected in the new Statement of Net Assets. Management believes that these restrictions and designations reflect the Council's desire to set aside funds to meet the requirements of a growing City and to be available for future projects. The total equity and other credits of the City is $293,557,276 of which $217,419,724 consists of capital assets, net of the related debt that was used in acquisition. $45,438,930 consists of restrictions placed upon special revenue, capital projects, and debt service funds leaving total unrestricted net assets of $30,698,622. The City has one internal service fund — Equipment Replacement Fund that primarily receives its revenues from charges for services from other City departments. Under the new reporting model, the assets and liabilities of this internal service fund have been included in the Statement of Net Assets. ACTIVITIES The objective of the Statement of Activities is to report the full cost of providing government services for that year. The format also permits the reader to ascertain the extent to which each function is either self-financing or draws from the general funds of the government. 10 The following chart lists a condensed Changes in Net Assets for the fiscal year ending June 30, 2001. In future years, this chart will contain a current to previous year comparison. CITY OF LA QUINTA Changes in Net Assets Revenues Program revenues Charges for services Operating grants and contributions Capital grants General revenues Taxes Investment income Motor Vehicle in lieu Other Total revenues Expenses General government Public safety Community services Planning and development Public works Interest Total expenses Excess (deficiency) 2001 $ 5,337,970 1,601,716 14,375,463 25,656,153 3,578,206 1,496,620 292,036 52.338.164 3,146,699 5,776,628 940,881 6,146,998 5,968,911 5.861.632 $ 24,496,415 The Statement of Activities starts with functional expenses, subtracts out functional revenues to arrive at a net number for each function, and then subtracts out all general revenues to arrive at the net change in net assets for the reporting period. The functional expenses for FY 00/01 were $27,841,749, and functional revenues of $21,315,149 were subtracted to arrive at a net cost of $6,526,600. The $6,526,600 is then subtracted from $31,023,015 in general revenues to arrive at a net change of $24,496,415. As mentioned earlier, this net change of $24,496,415 reported in the Statement of _ Activities compares to a net change of $5,353,632 under the modified accrual basis of accounting. The primary reasons for the differences between the two amounts are: 1) the net capitalization of $6.9 in infrastructure improvements, 2) a reduction in $4.5 million of long-term principal debt and 3) the revenue recognition of $7.5 million in deferred revenue. 11 REVENUES General Fund Revenues La Quinta shared in the national and state economic prosperity during FY 00/01. The City has been seen by homebuilders and by homebuyers as a suitable place to build and live. Homebuilders have seen La Quinta as a place to build homes because of the availability of land and labor which has resulted in greater than budgeted development fees and charges for services. Homebuyers have seen La Quinta as a place to buy because of lower interest rates and good home values which has resulted in greater property taxes, sales taxes and motor vehicle registration taxes. As a result of the increased population, and because of available land along the Highway 111 corridor, the City is experiencing retail growth that has added sales taxes to the City. The City is home to a world class destination resort which continues to generate transient occupancy taxes. Interest income has increased based upon a higher beginning fund balance and higher than expected revenues generated during the year. With this as background, the following chart reflects the major revenue categories of the General Fund: Revenues: Original Budget Final Budget Actual Favorable/ (Unfavorable) Taxes $71559,790 $7,559,790 $10,331,970 $2,772,180 Licenses and permits 802,900 802,900 2,057,423 1,254,523 Charges for services 877,425 884,703 1,998,589 1,113,886 Intergovernmental 1,511,350 1,626,705 2,164,891 538,186 Investment income 1,531,632 1,531,632 2,513,789 982,157 Miscellaneous 68,900 68,900 43,547 (25,353) Total revenues $12,351,997 $12,474,630 $1%110,209 $6,635,579 In summary, the revenues of the General Fund exceeded budget projections by $6.6 million. Of this $6.6 million, approximately $3 million is from development related sources generated from permits, fees for services and grant revenues. Other Revenues The Statement of Activities lists $15,324,183 in tax increment funds collected. As previously discussed, these funds are used for repayment of RDA debt and low and moderate housing. This year the two RDA Project Areas (1 and 2) property tax valuations have increased an average of 20% based upon new growth and higher County Tax Assessor's assessments on existing properties. In addition, far fewer assessment appeals at the County Assessor's office are outstanding. EXPENSES The Statement of Activities lists $22,739,303 in expenses for FY 00/01. Of this amount the three largest categories are $6.1 million in Planning and Development which includes the RDA, $5.8 million in interest debt service costs for outstanding debt, and $5.7 million In Public Safety, which includes the costs of the County of Riverside Sheriff's contract. The Statement of Activities does not include fire protection and library service costs. 12 The City contracts with the California Department of Forestry through the County of Riverside for fire services and with a private vendor for library services. Through an — agreement with the County of Riverside, $1,779,228 for fire services and $826,510 for library services was withheld from our property tax increment payments. General Fund Expenses The following table lists the $11,668,362 in general fund expenditures included in the Statement of Activities. Expenditures Original Budget Final Budget Actual Favorable/ (Unfavorable) General government $3,190,858 $3,117,380 $3,063,640 $53,740 Public safety 5,248,032 5,958,325 5,636,154 322,171 Community services 932,599 9985249 8175460 180,789 Planning and development 8395500 15181,365 733,579 447,786 Public works 1,741,861 11964,891 1,417,529 5475362 Total expenditures $11,952,850 $135220,210 $1156%362 $1,551,848 The major increases in the original and final budget for public safety consisted of increases in the Building and Police divisions. The Building Division increases were additional contract building inspectors and plan check services to deal with the increased building activity in the City of La Quinta. Police services were increased for enhanced special projects, which were 100% offset by grant funding. The major increase between the original and final budget for planning and development consisted of funding for the general plan and housing element. And finally, the major increases in public works budgets consisted of increases in plan check contracts to service new developments and additional slurry seal projects for road repair. Major increases in actual costs for FY 00/01 can be attributed to higher legal costs, added police positions, additional building inspection contract services, additional building plan check contract services, and additional engineering plan check contract services. Major and Non -Major Funds The City has identified five major funds for FY 00/01 — General Fund, Low & Moderate Income Housing Project Area 2 Fund, Debt Service RDA No.1 Fund, Debt Service RDA No.2 Fund, and Capital Projects Fund. GASB has set forth criteria for identifying major funds based upon the size of their balance statements or financial activity during the year. Major funds can change from year to year except for the General Fund, which is always considered a major fund. In addition, management is given the latitude to identify any additional major funds, even though the funds may not meet the GASB criteria. The City of La Quinta has not identified a non -major fund to classify as major fund. The purpose of this major and non -major classification is to highlight for the reader those funds that have a material impact on the City financial statement which may warrant closer review by the reader. 13 Conclusion As was mentioned in the Executive Summary, Management is pleased to report that the City of La Quinta was able to add to its reserves for FY 00/01. We hope you find this financial report, based upon the GASB 34 reporting model, helpful in your evaluation of the financial position and the operations of the City of La Quinta. If you have any questions about this report, please feel free to give me a call, John Falconer, CPA at 760- 777-7150. 14 BASIC FINANCIAL STATEMENTS 15 CITY OF LA QIJINTA Statement of Net Assets June 30, 2001 Governmental Activities Assets: Cash and investments (note 2) $ 60,446,544 Accounts receivable 2219420 Taxes receivable 242,764 Prepaid items 274,580 Interest receivable 477,890 Notes receivable (note 4) 8,861,382 Due from other governments 2,3289315 Deposits 29175 Restricted assets: Cash and investments with fiscal agent (note 2) 1092589354 Capital assets (note 5): Land 139981,170 Construction in progress 1993871,875 Other capital assets, net 276,824,778 Total assets 393,3079247 Liabilities: Accounts payable 32170,751 Accrued salaries and benefits 197,842 Interest payable 15479,973 Deposits payable 1,396,422 Due to other governments 730,884 Noncurrent liabilities (notes 6 to 13): Due within one year 11,469,079 Due in more than one year 81,305,020 Total liabilities 99,749,971 Net assets: Invested in capital assets, net of related debt 217,419,724 Restricted for: Public safety 72,249 Planning and development 2%498,191 Public works 12,442,770 Debt service 3,425,720 Unrestricted 30,698,622 Total net assets $ 293,557,276 See accompanying notes to the basic financial statements. 16 CITY OF LA QUINTA Statement of Activities Year Ended June 30, 2001 Program Revenues Operating Capital Net Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Governmental activities: General government $ 3,146,699 214,601 - 10,000 (2,922,098) Public safety 59776,628 2,860,434 157,778 22,882 (2,735,534) Community services 940,881 123,960 197,587 31 Al (588,053) Planning and development 63,146,998 709,033 454,137 - (4,983,828) Public works 5,968,911 1,4299942 792,214 14,311,300 109564,545 Interest expense 59861,632 - - - (5,861,632) Total governmental activities $ 27,841,749 5,337,970 1,601,716 149375,463 (69526,600) General revenues: Taxes: Property taxes Tax increment Sales taxes Transient occupancy taxes Franchise taxes Other taxes Investment income Motor vehicle in lieu Miscellaneous revenues Total general revenues Change in net assets Net assets at beginning of year Net assets at end of year See accompanying notes to the basic financial statements. 1,162,534 15,324,183 3,778,583 4,249,753 625)790 515,310 3,578,206 11496,620 292,036 31,023,015 241496,415 269,060,861 $ 293,557,276 17 CITY OF LA QUINTA Governmental Funds - Balance Sheet June 30, 2001 Special Revenue Debt Service Funds Low/Moderate Income Redevelopment Redevelopmen Housing - Agency - Agency - General PA No. 2 PA No. 1 PA No. 2 Assets Cash and investments (note 2) $ 24,81251490 351740,675 4,173,459 1,1815553 Cash with fiscal agent (note 2) - - 199,964 2,143 Accounts receivable 721221 - - - Taxes receivable 242,764 - - - Prepaid items 271,065 - - - Interest receivable 477,057 - - - Notes receivable (note 4) - 102751172 - - Due from other fiinds (note 18) 7817340 - I00,000 - Due from other governments 669,912 123149 159,715 481595 Advances to other funds (note 18) 1151472,971 395135 - - Deposits 25,175 - - - Total assets $ 38,801,995 14,419,131 4,633,138 1,232,291 Liabilities and Fund Balances Liabilities: Accounts payable $ 1,714,868 2451644 - - Accrued salaries and benefits 172,981 162469 - - Deferred revenue 1137800 10,627,172 - - Deposits payable 13,1753,876 - - - Due to other funds (note 18) - - - - Due to other governments - - 2001,899 529,985 Advances from other funds (note 18) - - 4,973,326 6,9611249 Total liabilities 3,1772525 10,668,285 5,174,225 7,491,234 Fund Balances: Fund balances (deficits) (note 24): Reserved for: Debt service - - - - Bond projects - - - - Prepaid items 271,065 - - - Deposits 2,175 - - - Advances to other funds 11,472,971 39,135 - - Notes receivable - - - - Unreserved, reported in (note 25): General fund 23,8781259 - - - Special revenue funds - 32711,711 - - Debt service funds - - (541,087) (6,258,943) Capital projects funds - - - - Total fund balances 35,62451470 317505,846 (541,087) (6,258,943) Total liabilities and fund balances $ 38,8011995 1424192131 4,633,138 11,2321291 See accompanying notes to the basic financial statements. 18 Capital Proiects Other Capital Governmental Improvement Funds Totals 549,762 23,863,029 58,320,968 - 10,056,247 10,258,354 - 149,199 221,420 - - 242,764 _ - 3,515 274,580 - 833 477,890 - 2,861,382 13,488,554 987,263 259,634 2,128,237 1,106,058 331,886 2,328,315 - 511,903 12,024,009 2,175 2,643,083 38,037,628 99,767,266 1,351,731 74,865 3,166,108 8,392 - 197,842 987,263 13025,536 12,753,771 2063,263 142283 1,396,422 - 22128,237 2328,237 - - 7302884 89,434 - 122024,009 2,643,083 3,2422921 322397,273 - 9,909 9,909 - 10,054,701 10,054,701 - 3,515 274,580 - - 2,175 - 511,903 12,024,009 - 2,861,382 2,861,382 - - 2398789259 - 2,6419284 69352,995 - - (6,800,030) - 18,7129013 1897129013 - 34,794,707 67,369,993 2,6439083 389037,628 99,7679266 19 CITY OF LA QUINTA Governmental Funds Reconcilation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2001 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resouces in governmental fund activity. Long term debt and compensated absences from the General Long Term Debt Account Group that have not been included in the governmental fund activity: Bonds payable Compensated absences Other long term liabilities Accrued interest payable for the current portion of interest due on bonds payable has not been reported in the governmental funds. Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. $ 67,369,993 3091482,288 (72,085,000) (373,537) (20,315,562) (1,479,973) 8,126,599 Internal service funds are used by mangement to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net assets 2,832,468 Net assets of governmental activities $ 293,557,276 See accompanying notes to the basic financial statements. 20 (This page intentionally left blank) 21 CITY OF LA QUINTA Governmental Fund Types - Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2001 Special Revenue Debt Service Funds Low/Moderate Income Redevelopment Redevelopment Housing - Agency - Agency - General PA No. 2 PA No. 1 PA No. 2 Revenues: Taxes $ 10,331,970 1,51700 14,948,451 6,070,400 Licenses and permits 2,057,423 - - - Charges for services 1,998,589 - - - Developer fees - - - - Intergovernmental 21164,891 - - - Investment income 2,513,789 185,625 575,845 84,159 Special assessments - - - - Rental income - - - - Gain (loss) on sale of land - - - - Miscellaneous 43,545 - - - Total revenues 19,110,207 1,703,225 15,524,296 6,154,559 Expenditures: Current: General government 3,063,641 - - - Public safety 5,636,154 - - - Community services 817,460 - - - Planning and development 733,579 837,605 237,341 98,580 Public works 1,417,528 - - - Capital projects - - - - Debt service: Principal - - 3,349,544 155,531 Interest - - 4,228,397 1,229,894 Payments under pass -through obligations - - 6,231,592 4,717,789 Total expenditures 11,668,362 837,605 14,046,874 6,201,794 Excess (deficiency) of revenues over (under) expenditures 7,441,845 865,620 1,477,422 47,235 Other financing sources (uses): Transfers in (note 22) 238,565 - 1,739,031 338,760 Transfers out (note 22) (828,438) (492,139) (3,888,672) (1,230,180) Total other financing sources (uses) (589,873) (492,139) (2,149,641) (891,420) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 6,851,972 373,481 (672,219) (938,655) Fund balances at beginning of year, as restated (note 21) 28,772,498 3,377,365 131,132 5,320,288 Fund balances at end of year $ 35,624,470 3,750,846 541,087 6,258,94D See accompanying notes to the basic financial statements. 22 Capital Projects — Other Capital Governmental Improvement Funds Totals - 3,737,113 3605,534 - - 2,057,423 — - - 1,998,589 276,149 2,316,249 2,592,398 6,414,543 820,906 9,400,340 - 1,534,501 4,893,919 - 782,610 782,610 - 1,067,076 1,067,076 - 406,461 406,461 — - 52,711 96,256 6,690,692 10,717,627 59,900,606 - 211,983 3,275,624 - - 5,636,154 - - 817,460 - 4,437,659 6,344,764 - 1,196,400 2,613,928 — 14,388,395 67,919 14,456,314 745,345 260,000 4,510,420 _ 65,683 418,955 5,942,929 - - 10,949,381 _ 15,199,423 6,592,916 54,546,974 (8,508,731) 4,124,711 5,353,632 8,508,731 7,086,428 17,9l l,515 - (11,472,086) (17,9l l,515) _ 8,508,731 (4,385,658) - - (260,947) 5,353,632 — - 35,055,654 62,016,361 - 34,794,707 67,369,993 23 CITY OF LA QUINTA Reconcilation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2001 Net changes in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. The statement of net assets includes accrued interest on long term debt. To record as an expense the net change in compensated absences in the statement of activities. Revenues that are measurable but not available. Amounts are not recorded as revenue under the modified accrual basis of accounting. Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities. Change in net assets of governmental activities See accompanying notes to the basic financial statements. $ 5,353,632 6,886,806 4,510,420 28,403 (51,545) 7,496,990 271,709 $ 24,496,415 24 CITY OF LA QUINTA Proprietary Fund Statement of Net Assets June 30, 2001 Governmental Activities - Internal Service Fund - Equipment Replacement Assets Current assets: Cash and investments Property, plant and equipment, net Total assets Liabilities Current liabilities: Accounts payable Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets See accompanying notes to the basic financial statements. $ 2,125,576 711,534 2,837,110 41643 711,534 2,120,933 $ 2,832,467 25 CITY OF LA QUINTA Proprietary Fund Statement of Revenues, Expenses and Changes in Net Assets Year ended June 30, 2001 Governmental Activities - Internal Service Fund - Equipment Replacement Operating revenues: Charges for services $ 364,748 Miscellaneous 10,000 Total operating revenues 374,748 Operating expenses: Fuel and oil 34,057 Maintenance and parts 104,237 Depreciation 106,760 Other operating expenses 295 Total operating expenses 245,349 Operating income (loss) 129,399 Non -operating revenues (expenses): Investment income 119,427 Total non -operating revenues (expenses) 11 %427 Income (loss) before transfers and capital contributions 248,826 Capital contributions 22,882 Changes in net assets 271,708 Net assets at beginning of year, as restated 2,560,759 Net assets at end of year $ 2,832,467 See accompanying notes to the basic financial statements. 26 CITY OF LA QUINTA Proprietary Fund Statement of Cash Flows Year ended June 30, 2001 Governmental Activities - Internal Service Fund - Equipment Replacement Cash flows from operating activities: Cash received from other customers $ 3741,748 Cash payments to suppliers for goods and services (139,288) Net cash provided by (used for) operating activities 23 5,460 Cash flows from capital and related activities: Purchase of fixed assets (84,760) Net cash provided by (used for) capital and related activities (84,760) Cash flows from investing activities: Interest received on investments 11 %427 Net cash provided by (used for) investing activities 119,427 Net increase (decrease) in cash and cash equivalents 270,127 Cash and cash equivalents at beginning of year 15855,449 Cash and cash equivalents at end of year $ 2,125,576 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ 12%399 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 106,760 Adjustments: Decrease (increase) in accounts payable (699) Net cash provided by (used for) operating activities $ 23 5,460 Noncash capital, financing and investing activities: Fixed assets contributed by other funds $ 22,882 See accompanying notes to the basic financial statements. 27 CITY OF LA QUINTA Agency Funds Statement of Fiduciary Assets and Liabilities June 30, 2001 Assets Cash and investments (note 2) $ 2,828,009 Total assets $ 2,828,009 Liabilities Accounts payable $ 8,500 Deposits payable 704,858 Due to bondholders 2,1149651 Total liabilities $ 2,828,009 See accompanying notes to the basic financial statements. 28 -_- -- - -- CITY OF LA QUINTA Notes to the Basic Financial Statements Year ended June 30, 2001 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. 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 stat component units, which are entities for wl financially accountable. The City is consi an organization if the City appoints a governing body and the City is able to i there is a potential for that organization to impose specific financial burdens on the financially accountable if an organization adopt its budget, levy taxes, set rates or approval from the City). In certain case component units if the nature and signifi( are such that their exclusion would caus misleading or incomplete. ;ments present the government and its ,ich the government is considered to be Jered to be financially accountable for toting majority of that organization's mpose its will on that organization or provide specific financial benefits to or '.',ity. The City is also considered to be s fiscally dependent (i.e., it is unable to charges, or issue bonded debt without s, other organizations are included as ance of their relationship with the City the City's financial statements to be 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. The following organizations are considered to be component units of the City: La Quinta Redevelopment Agency The La Quinta Redevelopment Agency (Agency) has established two redevelopment projec Code, Section 33000 29, 1983 and May Redevelopment Plans No. 2, respectively. deterioration, which is legally separate, it t 29 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Polices, (Continued) 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 are not prepared. (b) Basis of Accounting and Measurement Focus The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. FASB Pronouncements issued after November 30, 1989 are not followed in the preparation of the accompanying financial statements. Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its discreetly presented component units. The City of La Quinta has no business -type activities or discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental expenses have not been allocated as indirect expenses to the various functions of the City. 30 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Polices, (Continued) Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transaction are recognized in accordance with the requirements of GASB Statement No. 33. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government - wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the — related liability, rather than as an expenditure. Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmaj or funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations. 31 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Polices, (Continued) Governmental Funds In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a thirty day availability period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non -exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntary non -exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non -current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. 32 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Polices, (Continued) Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Proprietary Funds The City's internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. Amounts paid to acquire capital assets are capitalized as assets in the internal service fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the internal service fund financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the internal service fund are reported as a reduction of the related liability, rather than as an expenditure. Fiduciary Funds The City's fiduciary funds are agency funds. Agency funds are custodial in nature. Assets equal liabilities. Agency funds use the accrual basis of accounting. (c) Major Funds, Internal Service Funds and Fiduciary Fund Types The City's major funds are as follows: 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. 33 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 1) Summary of Sianificant Accountina Polices, (Continued Low/Moderate Income Housing — Project Area No. 2 Fund — This special revenue fund is used 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. Redevelopment Agency Debt Service — Project Area No. 1 Fund — This debt service fund is used to account for the accumulation of resources for the payment of debt service for bond principal and interest and trustee fees for Project Area No. 1. Redevelopment Agency Debt Service — Project Area No. 2 Fund — This debt service fund is used to account for the accumulation of resources for the payment of debt service for bond principal and interest and trustee fees for Project Area No. 2. Capital Improvement Fund — This capital projects fund is used to account for the planning, design and construction of various capital projects throughout the City of La Quinta and the Redevelopment Agency. Other fund types of the City are as follows: Internal Service Fund — This fund accounts for equipment and vehicle maintenance and replacement services provided to other departments on a cost - reimbursement basis. Agency Funds — These funds account for assets held by the City as an agency for assessment district bondholders and for Arts in Public Places donations. (d) Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair market value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. 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. 34 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 1) Summary of Significant Accounting Polices, (Continued (e) 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. (f) Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed fixed assets are valued at their estimated fair market value at the date of the contribution. Generally, fixed asset purchases in excess of $500 are capitalized if they have an expected useful life of three years or more. Capital assets include public domain (infrastructure) general fixed assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government —wide financial statements and in _ the fund financial statements of the internal service funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes fixed asset useful lives: Buildings and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years (g) 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 35 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Polices, (Continued) 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. (h) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) to its employees. 36 (This page intentionally left blank) 37 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) �l) Summary of Significant Accounting Policies, (Continued) (i) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets "Total fund balances" of the City's governmental funds of $67,369,993 differs from "net assets" of governmental activities of $293,557,276 reported in the statement of net assets. This difference is primarily a result from the long-term economic focus of the statement of net assets versus the current financial resources focus of the governmental fund balance sheets. Capital Related Items When capital assets (land, buildings, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds. However, the statement of net assets includes those capital assets among the assets of the City as a whole:. Infrastructure Construction in progress Cost of capital assets Accumulated depreciation Long -Term Liabilities Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long term are reported in the statement of net assets. Balances at June 30, 2001 were: Compensated absences Bonds payable Other long term liabilities Interest Payable Accrued liabilities in the statement of net assets differs from the amount reported in the governmental funds due to accrued interest on bonds payable. Increases Decreases Balance - $ 67,369,993 309,739,666 19,387,875 - 30,700,021 - - (50,345,274) 359,827,562 (50,345,274) - (373,537) - (72,085,000) - (20,315,562) (92,774,099) - (1,479,973) 38 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) �11 Summary of Significant Accounting Policies. (Continued) (i) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets (,Continued) Increases Decreases Balance Deferred Revenue Because the focus of governmental funds is on short term financing, some assets will not be available to pay for current period expenditures. Those assets are offset by deferred revenue in governmental funds, and thus are not included in fund balances. 8,126,599 - Internal Service Fund Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds is included in governmental activities in the statement of net assets. 2,832,468 - Reclassifications and Eliminations Interfund balances must generally be eliminated in the governmental statements, except for residual amounts due between governmental activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once - in the function in which they are allocated. Net change Net assets of governmental activities 370,786,629 (144,599,346) 226,187,283 $ 293,557,276 39 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (i) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets, (Continued) Assets: Cash and investments Cash with fiscal agent Accounts receivable Taxes receivable Prepaid items Interest receivable Notes receivable Due from other funds Due from other governments Advances to other funds Deposits Capital assets, net Total assets Liabilities: Accounts payable Accrued salaries and benefits Interest payable Deferred revenue Deposits payable Due to other funds Due to other governments Advances from other funds Long term liabilities Total liabilities Fund balances/net assets Total liabilities and fund balances/net assets Total Other Governmental Capital Accumulated Funds Infrastructure Assets Depreciation $ 58,320,968 - - - 10,258,354 - _ - 221,420 - - - 242,764 - - - 274,580 - - _ 477,890 - - - 13,488,554 - - - 2,128,237 - - 2,328,315 - - 12,024,009 - - - 2,175 - - - - 32%127,541 30,700,021 (50,345,274) $ 99,767,266 329,127,541 30,700,021 (50,345)274) $ 3,166,108 - - 197,842 12,753,771 - _ _ 1,396,422 - _ _ 2,1283,237 - - 730,884 - - - 12,024,009 - - - 32,397,273 - _ _ 67,369,993 329,1271,541 30,700,021 (50,345,274) $ 99,767,266 32%127,541 30,700,021 (50,345,274) 40 Long-term Certain Internal Reclassifications Statement of Debt Interest Compensated Deferred Service and Net Assets Transactions Payable Absences Revenue Fund Eliminations Totals - - - - 2,125,576 - 60,446,544 - - - - - - 10,258,354 - - - - - - 22110420 - - - - - - 2421,764 - - - - - - 2745580 - - - - - - 477,890 - - - (4,627,172) - - 8,8613,382 - - - - - (2,128,237) - - - - - - - 2,328,315 - - - - - (12,0245009) - - - - - - - 2,175 - - - - 711,535 - 310,193,823 - - - 4,627,172 2,837,111 (145152,246) 393,307,247 4,643 - 3,170,751 - - - - - 197,842 13,479,973 - - - - 1,479,973 - - (12,753,771) - - - - - - - - 1,396,422 (2,128,237) - 730,884 - - - - - (12,024,009) - 92,400,562 - 373,537 - - - 92,774,099 92,400,562 1,479,973 373,537 (12,753,771) 4,643 (14,152,246) 99,749,971 (92,400,562) (1,479,973) (373,537) 8,126,599 2,832,468 - 293,557,276 4,627,172 2,837,111 (14,152,246) 393,307,247 41 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (j) Explanation of Differences between Governmental Funds Operating Statements and the Statement of Activities Increases Decreases Balance The "net changes in fund balances" for governmental funds of $5,353,632 differs from the "changes in net assets" for the governmental activities of $24,496,415 reported in the statement of activities. The differences arise primarily from the long term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effects of the differences is illustrated below. - - $ 5,353,632 Capital Related Items When capital assets (land, buildings, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balance increases by the amount of financial resources expended, whereas net assets decrease by the amounts of depreciation expense charged for the year. Capital outlay 10,925,802 - Depreciation expense - 4,038,996) 10,925,802 (4,038,996) Long -Term Liabilities Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Net change in compensated absences - (51,545) Repayment of bond principal and other long term liabilities is reported as an expenditure in governmental funds and, thus, has the effect of reducing fund balance because current financial resources have been used. For the City as a whole, however, the principal payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities. Principal payments made 4,510,420 - 42 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting_ Policies, (Continued) (j) Explanation of Differences between Governmental Funds Operating Statements and the Statement of Activities, (Continued) Increases Decreases Balance Accrued Interest Beginning fund balance in the statement of activities has been restated to reflect the retroactive recording of accrued interest on bonds payable. 28,403 - Deferred Revenue Because the focus of governmental funds is on short term financing, some assets will not be available to pay for current period expenditures. Those assets are offset by deferred revenue in governmental funds, and thus are not included as revenues. 7,496,990 Internal Service Fund Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The adjustments for internal service funds "closes" those funds by charging additional amounts to participating governmental activities to completely cover the internal service fund's costs for the year. 271,709 - Reclassifications and Eliminations Interfund balances must generally be eliminated in the governmental statements, except for residual amounts due between governmental activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once - in the function in which they are allocated. Net change Net assets of governmental activities 23,233,324 (4,090,541) 19,142,783 $24,496,415 43 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (j) Explanation of Differences between Governmental Funds Operating Statements and the Statement of Activities, (Continued) Total Governmental Funds Infrastructure Revenues: Taxes Licenses and permits Charges for services Developer fees Intergovernmental Investment income Special assessments Rental income Gain (loss) on sale of land 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 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances/net assets Fund balances/net assets, beginning of year, as restated Fund balances/net assets, end of year Other Long-term Capital Accumulated Debt Assets Depreciation Transactions $ 36,605,534 - - - - 2,057,423 - - - - 1,998,589 - - - - 2,592,398 432,164 - - - 9,400,340 (2,524,799) - - - 4,893,919 - - - - 782,610 (25,889) - - - 1,067,076 - - - - 406,461 - (217,984) - - 96,256 - - - - 59,900,606 (2,118,524) (217,984) - - 3,275,624 - - 57,674 - 5,636,154 - - 504,536 - 817,460 - - 129,758 - 6,344,764 - - 5,858 - 2,613,928 - - 3,341,170 - 14,456,314 (12,875,014) (334,402) - - 4,510,420 - - - (4,510,420) 5,942,929 (52,894) - - - 10,949,381 - - - - 54,546,974 (12,927,908) (334,402) 4,038,996 (4,510,420) 17,911,515 - - - - (17,911,515) - - - - 5,353,632 10,809,384 116,418 (4,038,996) 4,510,420 62,016,361 318,318,157 30,583,603 (46,306,278) (96,910,982) $ 67,369,993 329,127,541 30,700,021 50,345,274 (92,400,562) 44 Interest Compensated Deferred Payable Absences Revenue Internal Service Funds Reclassifications and Eliminations Statement of Activities Totals - - - - (10,949,381) 25,656,153 _ - - - - 2,057,423 _ - - - - 1,998,589 - - 6,000,000 - - 9,024,562 - - 127,969 10,000 - 7,013,510 - - 122,123 119,428 - 5,135,470 - - - 756,721 - - - - (678,955) 388,121 _ - - - - 188,477 - - - 22,882 - 119,138 6,250,092 152,310 (11,628,336) 52,338,164 — - 14,104 - 2,984 (203,687) 3,146,699 - 42,592 - (135,073) (271,581) 5,776,628 - (6,337) - - - 940,881 - 63 - - (203,687) 6,146,998 _ - 1,123 - 12,690 - 5,968,911 - - (1,246,898) - - - (28,403) - - - - 5,861,632 — - - - - (10,949,381) - 28,403 51,545 1,246,898 (119,399) (11,628,336) 27,841,749 - - - - (17,911,515) - - - - - 17,911,515 - 28,403 (51,545) 7,496,990 271,709 - 24,496,415 1,508,376 (321,992) 629,609 2,560,759 - 269,060,861 — 1,479,973 (373,537) 8,1� 2,832,468 - 293,557,276 45 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments Cash and investments are reported as follows: Statement of Net Assets: Cash and investments Cash and investments with fiscal agent Statement of Fiduciary Net Assets: Cash and investments Total $ 60,446,544 10,258,354 2,828,009 73,532,907 Cash and investments held by the City at June 30, 2001 consisted of the following: Petty cash Demand deposits Investments Total $ 739 3,410,330 70,121,838 $ 73,5322907 The City and its component units are authorized by its investment policy to invest in the following types of investments: Investment Type Maximum % Government pools 15% 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: 46 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 2) Cash and Investments, (Continued 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 $100,000 239,081 4,8092341 5:1483422 3,410,330 Investments of cities in securities are classified in three categories to give an indication of the level of custodial risk assumed by the entity. Category 1 - includes investments that are insured or registered or for which the securities are held by the City or the City's custodial agent (which must be a different institution other than the party through which the City purchased the securities) in the City's name. Investments held "in the City's name" include securities held in a separate custodial or fiduciary account and identified as owned by the City in the custodian's internal accounting records. Category 2 - includes uninsured and unregistered investments for which the securities are held in the City's name by the dealer's agent (or by the trust department of the dealer if the dealer was a financial institution and another department of the institution purchased the securities for the City). Category 3 - includes uninsured and unregistered investments for which the securities are held by the dealer's trust department or agent, but not in the City's name. Category 3 _ also includes all securities held by the broker -dealer agent of the City (the party that purchased the securities for the City) regardless of whether or not the securities are being held in the City's name. 47 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Category Carrying 1 2 3 Value Investments held by the City: U.S. Treasury Notes $ 20,178,344 - - 20,178,344 U.S. Treasury Bills %908,717 - - 9,908,717 Government Agency Securities 15,077,379 - - 15,077,379 Commercial Paper 5,979,666 - - 5,979,666 5131443106 - - 51,144,106 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund 8,719,382 Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 10,258,350 70,121,838 Investments are adjusted at year-end to fair value, except when the difference between fair value and book value is immaterial. 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) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1 % of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within sixty days after year-end. 48 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (3) Property Taxes, (Continued) Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary source of revenue comes from property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the _ "frozen" assessed valuation of the property are allocated to the City and other districts. 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. 49 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (4) Notes Receivable In September 1994, the Redevelopment Agency sold certain real property to LINC Housing 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. In October 2000, the Redevelopment Agency entered into an agreement with DC&TC, LLC to provide for the construction of certain infrastructure related to the development of affordable housing within Project Area No. 2. A promissory note in the amount of $4,627,172 was entered into with the Developer. The note bears no interest and is payable on October 25, 2010. The balance of the note is reduced by one - fifty -ninth (1/59) upon the close of each escrow for the units sold within the specifications of the Affordable Housing Agreement. In December 2000, the Redevelopment Agency entered into an agreement with DC&TC, LLC to receive $6,000,000 as a reimbursement for Agency costs incurred for the construction of infrastructure related to the development of senior apartments. Payments are due to the Agency in the amount of annual positive cash flow generated by the rental of the units. All unpaid principal and interest on the note are due fifty-five years after the completion of the project. Interest on the note accrues at 3% per annum. Other notes receivable Total per fund financial statements Less amounts not recorded in governmental statements Total per governmental financial statements Outstanding Balance at June 30, 2001 $ 2,7979297 4,627,172 • 111 111 64,085 13,488,554 (4,627,172) 8,861.382 50 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (5) Capital Assets Capital asset activity for the year ended June 30, 2001 is as follows: Buildings and improvements Equipment and furniture Vehicles Infrastructure Total cost of depreciable assets Balance at June 30, 2000, Balance at as restated Additions Deletions June 30, 2001 $ 15,544,136 77,553 (13,334) 15,608,355 1,574,663 196,869 (939768) 116773764 827,006 123,980 (673,218) 883,768 3045381,322 5,358,344 - 309,739,666 322,327,127 5,756,746 (174,320) 327,909,553 Less accumulated depreciation: — Buildings and improvements 3,213,150 497,171 - 3,7109321 Equipment and furniture 787,525 175,070 - 962,595 Vehicles 509,079 635816 (44,336) 528,559 — Infrastructure 42,473,602 3,40%698 - 4558835300 Total accumulated depreciation Net depreciable assets Capital assets not depreciated: Land - Construction in progress Capital assets, net 46,983,356 4,145,755 449336 51,084,775 275,343,771 19610,991 (129,984) 276,824,778 149024,130 459040 (88,000) 1399819170 13,936,835 10,809,384 (5,358,344) 19,387,875 $ 303,3049736 12,465,415 59576,328 31091939,823 Depreciation expense was charged in the following functions in the Statement of Activities: General government $ 573,674 Public safety 5711,198 Community services 129,758 Planning and development 5,858 Public works 3,381,267 $ 4,1453,755 51 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (6) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 2001 were as follows: City: Compensated absences payable Due to the Coachella Valley Association of Governments Developer Agreements Payable RDA Project Area No. 1: Tax allocation bonds Housing tax allocation bonds Pass -through agreements payable: Due to County of Riverside Coachella Valley Unified School District RDA Project Area No. 2: Tax allocation bonds Housing tax allocation bonds Due to County of Riverside Financing Authority: Revenue bonds Total Balance at June 30, 2000 Additions $321,992 51,545 628,311 - 695,345 - Amounts Balance at due within Deletions June 30, 2001 one year 373,537 70,000 (50,000) 578,311 50,000 (695,345) 37,765,000 - (1,140,000) 36,625,000 1,195,000 _ - 16,904,618 - (279,469) 16,625,149 291,277 9,899,104 - (1,259,258) 8,639,846 8,639,846 9,418,222 - (670,817) 8,747,405 684,233 6,670,000 - (80,000) 6,590,000 85,000 4,570,382 - (75,531) 4,494,851 78,723 - 2,350,000 - - 2,350,000 100,000 8,010,000 - 2( 60,000) 7,750,000 275,000 97 231974 _ 51,545 4 10,420) _ 92,774,099 11.469,079 7) Due to the Coachella Vallev 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, 2001, the balance was $578,311. 52 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds As of June 30, 2001, 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, 19941 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2001 is $20,865,000. 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. The unexpended balance of proceeds at June 30, 2001 is $5,357,019. 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2001 is $15,760,000. 53 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 8) Tax Allocation Bonds. (Continued 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. The unexpended balance of proceeds at June 30, 2001 is $214,396. 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2001 is $6,590,000. 9) 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 11 1996. Interest payments range from 4% to 6% per annum. The interest and principal of the bonds are payable from pledged tax increment revenues of both project areas. Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2011 and on each September 1 thereafter, through September 1, 2025, at a price equal to the principal amount plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The principal balance of outstanding bonds at June 30, 2001 is $21,120,000. 54 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (10) 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. The unexpended balance of proceeds at June 30, 2001 is $542,000. 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 1, 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The amount of principal outstanding on the 1996 Lease Revenue Refunding Bonds at June 30, 2001 is $7,750,000. (11) 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, 2001 is $8,639,846. 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, 2001 is $2,350,000. 55 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (12) 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 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, 2001 totaled $8,747,405. 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. (13) 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, 2001 are as follows: 56 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (13) Debt Service Requirements to Maturity, (Continued) Ending June 30 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 Principal and interest Less: Interest Total principal CVAG $50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 28,311 1995 Housing TABS 1,590,690 1,592,820 1,588,538 1,587,990 1,590,890 1,645,502 1,646,470 1,645,125 1,641,540 1,640,840 1,641,650 1,638,750 1,638,300 1,635,150 1,634,150 1,630,150 1,632,850 1,627,100 1,627,750 1,624,500 1,622,200 1,620,550 1,619,250 1,613,150 1,611,950 1994 TABS 2,620,315 2,620,855 2,599,465 2,612,140 2,597,700 2,593,456 2,590,816 2,584,232 2,578,160 2,571,868 2,569,442 2,560,155 1998 TABS P.A. No. 1 819,520 819,520 819,520 819,520 819,520 819,520 819,520 819,520 819,520 819,520 819,520 819,520 1,457,490 1,457,520 1,455,730 1,456,990 1,451,300 1,453,530 1,453,420 1,450,970 1,451,050 1,448,530 1,448,280 1,445,170 1,444,070 1,439,850 1,437,380 1,436,400 1998 TABS P.A. No. 2 419,249 420,747 417,080 418,264 419,167 419,785 420,135 420,184 419,550 418,272 416,738 419,819 417,516 414,956 417,012 418,556 414,716 415,491 415,631 415,131 414,106 417,425 415,088 417,094 413,444 414,137 414,044 413,162 411,494 413,906 410,400 410,975 410,500 1996 Pass -through Agreements Lease Revenue Coachella County Refunding Valley of Bonds USD Riverside Total 682,178 684,233 8,739,846 15,606,031 679,435 697,918 100,000 6,981,295 680,830 711,877 100,000 6,967,310 681,220 726,114 100,000 6,995,248 680,575 740,636 100,000 6,998,488 678,865 755,449 100,000 7,062,577 675,880 770,558 150,000 7,123,379 676,450 785,968 200,000 7,181,479 675,280 801,688 200,000 7,185,738 672,525 817,722 200,000 7,190,747 673,521 834,076 250,000 7,254,947 673,130 421,166 250,000 6,810,851 671,351 - 250,000 4,434,657 673,046 - 250,000 4,430,672 673,076 - - 4,179,968 671,441 - - 4,177,137 668,141 - - 4,167,007 668,038 - - 4,164,159 - - - 3,496,801 - - - 3,490,601 - - - 3,487,356 _ _ - 3,486,505 - - - 3,482,618 - - - 3,475,414 _ _ - 3,469,464 _ _ - 1,853,987 _ _ - 1,851,424 _ _ - 1,849,562 _ _ - 411,494 _ _ - 413,906 _ _ _ 410,400 _ _ - 410,975 410,500 578,311 40,587,855 31,098,604 33,021,920 13,733,774 12,154,982 8,747,405 10,989,846 150,912,697 - (19,467,855) (10,233,604) (17,261,920) (7,143,774) (4,404,982) - - (58,512,135) 78 11 21,120.0020,865,000 15 00 6 5 7,750,000 8,747,405 10.989,846 92 400-, 57 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (14) 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, 2001: Amount Outstanding Proceeds Maturity Date Interest Rate at June 30, 2001 Assessment District No. 88-1 $ 855,984 9/2/04 5.50%-7.25% $ 185,000 Assessment District No. 89-2 1,153,974 9/2/04 6.65%-6.75% 320,000 Assessment District No. 90-1 1,227,155 9/2/05 6.50%-7.00% 415,000 Assessment District No. 9 1 -1 2,240,866 9/2/06 6.70%-6.80% 930,000 Assessment District No. 92-1 1,880,891 9/2/08 5.00%-5.40% 1,090,000 Assessment District No. 97-1 705,262 9/2/18 4.10%-5.20% 720,000 Assessment District No. 200 1 -1 2,285,000 9/2/15 5.00%-6.60% 2,195,000 (15) 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 Policy 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, 2001, the rate was 4.116% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. 58 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 15) Defined Benefit Pension Plan, (Continued Annual Pension Cost For 2001, the City's annual pension cost (employer contribution) in the amount of $70,752 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1998, 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). Any unfunded actuarial accrued liability is amortized as a level percentage of projected payroll on a closed basis. PERS combines the prior service unfunded liability and the current service unfunded liability into a single initial unfunded liability. The single funding horizon for the 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 6/30/99 $219,350 100% -0- 6/30/00 128,123 100% -0- 6/30/01 70,752 100% -0- Required Supplementary Information ($ amount in thousands) Entry Age Normal Actuarial Unfunded Accrued Value Liability/ Valuation Date Liability of Assets (Excess Assets) Funded Status 06/30/98 $4,389,078 5,957,276 (1,568,198) 06/30/99 4,989,981 7,206,658 (2,216,677) 06/30/00 5,704,327 8,340,014 (2,635,687) Annual UAAL Covered As a % of Payroll Payroll 135.7% 3,075,703 (50.987%) 144.4% 3,087,175 (71.803%) 146.2% 3,146,845 (83.756%) 59 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (16) 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. 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. (17) Contingencies 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. M CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (18) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 2001 are as follows: Due From Non -major Governmental Due To Funds General fund $ 781,340 RDA Debt Service PA No. 1 100,000 Capital Improvement 9877263 Non -major governmental funds 259,634 Totals $ 23128,237 Noncurrent interfund receivable and payable balances at June 30, 2001 are as follows: Advances To RDA RDA Debt Service - Debt Service - Capital -- Advances From PA No. 1 PA No. 2 Improvement Totals General fund $4,461,423 6,922,114 8%434 11,472,971 Low/Moderate Income Housing PA No. 2 - 399135 - 399135 Non -major governmental funds 511,903 - - 511,903 Totals $4973, 326 639613249 89,434 12,024,009 As of June 30, 2001 the amount due to the General Fund from RDA Debt Service 1 was $4,461,423 and from RDA Debt Service 2 was $6,922,114. These outstanding advances consist of monies loaned to the Redevelopment Agency with no required repayment date and accrue an interest of 10%. (19) 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: 61 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (19) Proposition 218, (Continued) 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. (20) Construction Commitments The following material construction commitments existed at June 30, 2001: Expenditures as of Remaining Project Name June 30, 2001 Commitments Municipal Library $ 1,676 523,324 Phase VI-D — Sagebrush, Bottlebrush, Saquaro 1,064,660 5421941 Miraflores Single Family Homes 4,953,379 596,466 Civic Center Campus Improvements 221,735 836,289 Citywide Street/Sidewalk Improvements 529221 864,046 Phase VI-C Westward Ho 1,112,098 111127,525 18 Acre Park Site at Westward Ho 32,879 2,692,121 Phase VI — Village Commercial Area 4,349,937 3,685,069 Miraflores Senior Apartments 1,126,580 3,983,244 Phase 2 — Jefferson Street Improvements 3,631 4,878,369 CVAG/Jefferson Phase I 9,212,275 6,975,658 62 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (21) Restatement of Fund Balances Fund balances have been restated at June 30, 2000 as follows: Non -major General Debt Service Debt Service Governmental Fund PA No. 1 PA No. 2 Funds Fund balances at June 30, 2000, as previously reported $ 28,677,398 41186,971 972,543 35,685,563 To reflect additional sales tax revenues earned in the prior year 95,100 - - - To record the effect of removing advances from other funds from the long-term debt account group and recording the liability in the fund responsible for repayment - (4,055,839) (6,292,831) - To adjust deferred revenue for interest earned in prior years but not yet received - - - 629 909 Fund balances (deficit) at June 30, 2000, as restated 28 772,498 = 131a132(5,320,288) 35,055,654 (22) Interfund Transfers Interfund transfers were as follows for the year ended June 30, 2001: Transfers From Low/Moderate RDA Debt RDA Debt Non -major General Income Housing Service - Service - Governmental Transfers To Fund PA No. 2 PA No. 1 PA No. 2 Funds Totals General fund $ - - - - 238,565 238,565 RDA DS PA # 1 - - - - 1,739,031 1,739,031 RDA DS PA #2 - 338,760 - - - 338,760 Capital Improvement 828,438 153,379 - - 7,526,914 8,508,731 Nonmajor governmental - 3,888,672 1,230,180 1,967,576 7,086,428 Totals S 828,438492,139 3,888,6721,230,180 11,472,086 17,911.515 63 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 22) Interfund Transfers. (Continued The following lists the major transfers in and transfers out included in the financial statements: Transfers from Major Funds $3,888,672 was transferred from the RDA Debt Service — PA No. 1 Fund to the RDA Capital Projects — PA No. 1 Fund which represents funds available for future year capital projects within the Project Area. $1,230,180 was transferred from the RDA Debt Service — PA No. 2 Fund to the RDA Capital Projects — PA No. 2 fund which represents funds available for future year capital projects within the Project Area. Transfers from Non -Major Funds $1,891,080 was transferred from the Infrastructure Fund to the Transportation Fund to complete construction projects funded by Developer Impact fees. $2,43 9,169 was transferred from the RDA Capital Projects — PA No. 1 Fund to the Capital Improvement Fund to pay for infrastructure improvements to the La Quinta Village Area. $1,253,427 was transferred from the RDA Low Moderate Income Housing — PA No. 1 Fund to the RDA Debt Service — PA No. 1 Fund in accordance with the provisions of the 1995 Bond issue. 23) Subseauent Events On August 1, 2001, the Redevelopment Agency Project Area No. 1 issued $48,000,000 of tax allocation bonds to finance certain redevelopment projects benefiting the project area. Interest rates on the bonds range from 5.00% to 5.10% 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 1994 and 1998 tax allocation bonds. Principal payments are due in annual installments ranging from $1,565,000 to $3,805,000. The final maturity date of the bonds is September 1, 2031. 64 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (24) Fund Deficits The following funds had deficit balances at June 30, 2001: Special Revenue Funds: Federal Assistance ($273,804) Debt Service Funds: RDA PA No. 1 (541,087) RDA PA No. 2 (6,258,943) — Federal Assistance Fund — In accordance with Government Accounting Standards Board Pronouncement No. 33, revenues that are measurable and earned, but not available, must be deferred. $273,804 of deferred revenue was recorded for federal reimbursement revenues that were not collected within the available timeframe. RDA Debt Service — PA No. 1 — In accordance with Government Accounting Standards Board Pronouncement No. 34, the financial statements contain a restatement of fund balance to reflect the outstanding advance of $4,973,326 which in prior years had been accounted for in the General Long Term Debt Account Group. These outstanding advances consist of monies loaned to the Redevelopment Agency with no required repayment date and accrue an interest of 10% and are subordinated to other debt service payments. RDA Debt Service — PA No. 2 — In accordance with Government Accounting Standards Board Pronouncement No. 34, the financial statements contain a restatement of fund balance to reflect the outstanding advance of $6,691,249 which in prior years had been accounted for in the General Long Term Debt Account Group. These outstanding — advances consist of monies loaned to the Redevelopment Agency with no required repayment date and accrue an interest of 10% and are subordinated to other debt service payments. (25) Unreserved Fund Balances _ Unreserved fund balances at June 30, 2001 consisted of the following: Special Revenue Debt Service Low/Moderate Redevelopment Redeve opment ter General Income Housing Agency Agency Governmental — Fund PA No. 1 PA No. 1 PA No. 2 Funds Totals Designated for: Emergency reserve $91119,765 - - - - 9019,765 Cash Flows 1,800,000 - - - - 1,800,000 — Operations/projects/ transfers 12,958,494 3,711,711 - - 22,344,871 39,015,076 Undesignated - - 54( 1,087) 6 258 943) (991,574 (7,791,604) Total unreserved fund balance (deficit)___ 23,878,259 -a,711, 111 541.087) 6,2�_ 58 43) 21 35 297 42,143.�237 — 65 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (26) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2001 exceeded the appropriations of the following funds/departments: General Funds: Legislative Economic development Fiscal services Building and safety administration Civic center building Public works administration Capital projects administration Special revenue funds: South Coast Air Quality Debt services funds: Redevelopment Agency Project Area No. 1 Redevelopment Agency Project Area No. 2 Capital projects funds: Civic Center Fund A.D. 2000-1 Phase VI Fund (27) Changes in Accounting Principle Budge Actual $ 585,850 690,118 8663,350 8907901 264,342 295,671 153,082 160,081 495,560 526,590 63,683 154,870 (318,244) (83,350) 5,700 10,699 13,883,908 14,046,874 5,872,505 6,201,794 203,700 211,983 - 25,889 Variance (104,268) (24,551) (31,329) (6,999) (31,030) (91,187) (234,894) (4,999) (162,966) (329,289) (8,283) (25,889) During the year ended June 30, 2001, the City of La Quinta implemented GASB Statements No. 33 and 34. GASB Statement No. 34 changed the financial reporting model of local governmental units. As a result of GASB Statement No. 34, fund financial statements are required to be presented with a focus on the major funds of that local government. Previously, financial reporting for local governments had focused on reporting by fund type. The modified accrual basis of accounting and the current financial resources measurement focus is used in the fund financial statements for the governmental funds of the City. GASB Statement No. 34 also requires the presentation of government -wide financial statements. Previously, government -wide financial statements were not required. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus requires that all (both current and long-term) assets and liabilities of the City be reported in the government -wide financial statements. The effect of the application of the economic resources measurement focus and the accrual basis of 66 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (27) Changes in Accounting Principle, (Continued) accounting on the net assets of the City as of July 1, 2000 is set forth in note 21 to the basic financial statements. GASB Statement No. 33 formalized revenue recognition principles for the nonexchange transactions of local governmental units. GASB Statement No. 33 had minimal effects on — the financial statements of the City, which was already following the principles set forth by GASB Statement No. 33. 67 (This page intentionally left blank) 68 REQUIRED SUPPLEMENTARY INFORMATION 69 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. SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than major capital projects) and the related expenditures that are legally required to be accounted for in a separate fund. The following fund has been classified as a major fund. The budget -actual comparison for this fund has been presented in the accompanying financial statements as required supplementary information: Redevelopment Agency, Low and Moderate Income Housing P.A. No. 2 Fund — 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. 70 CITY OF LA QUINTA Notes to Required Supplementary Information Year ended June 30, 2001 1) Budgets and Budgetary Accountin 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 $10,011,868 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. (2) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2001 exceeded the appropriations of the following funds/departments: Budget Actual Variance General Fund: Legislative $ 585,850 690,118 (104,268) Economic development 866,350 890,901 (24,551) Fiscal services 264,342 295,671 (31,329) Building and safety administration 153,082 1601,081 (6,999) Civic center building 495,560 526,590 (31,030) Public works administration 63,683 1541,870 (91,187) Capital projects administration (318,244) (83,350) (234,894) 71 CITY OF LA QUINTA General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (Negative) Actual Revenues: Taxes $ 7,559,790 7,559,790 10,331,970 2,772,180 8,888,825 Licenses and permits 802,900 802,900 2,057,423 1,254,523 2,493,360 Charges for services 877,425 884,703 1,998,589 1,113,886 1,922,097 Intergovernmental 1,511,350 1,476,705 2,164,891 688,186 2,388,749 Investment income 1,531,632 1,519,000 2,513,789 994,789 1,868,073 Miscellaneous 68,900 68,900 43,545 (25,355) 106,371 Total revenues 12,351,997 12,311,998 19,110,207 6,798,209 17,667,475 Expenditures: General government: Legislative 482,500 585,850 690,118 (104,268) 405,857 City manager 319,075 253,211 253,211 - 246,023 Economic development 866,350 866,350 890,901 (24,551) 814,903 Personnel 465,355 364,167 265,766 98,401 249,713 Fiscal services 332,828 264,342 295,671 (31,329) 311,476 Central services 472,715 475,465 407,638 67,827 552,696 City clerk 252,035 287,995 260,336 27,659 233,936 Total general government 3,190,858 3,097,380 3,063,641 33,739 2,814,604 Public safety: Police 3,467,100 3,774,313 3,650,632 123,681 3,084,646 Building and safety administrative 139,250 153,082 160,081 (6,999) 191,787 Code compliance 489,925 509,925 415,552 94,373 358,775 Animal control 191,905 198,155 139,803 58,352 133,602 Building 447,271 776,871 717,419 59,452 592,238 Emergency services 21,521 23,141 20,671 2,470 43,654 Fire 20,000 27,278 5,406 21,872 9,261 Civic center building 471,060 495,560 526,590 (31,030) 578,848 Total public safety 5,248,032 5,958,325 5,636,154 322,171 4,992,811 Community services: Senior center 242,190 249,190 219,143 30,047 222,931 Parks and recreation administration 601,709 658,959 534,836 124,123 490,471 Parks and recreation programs 88,700 90,100 63,481 26,619 55,126 Total community services 932,599 998,249 817,460 180,789 768,528 (Continued) 72 CITY OF LA QUINTA General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) Variance with Budget Final Budget 2000 Original Final Actual Positive (Negative) Actual Planning and development: Community development administration 355,700 381,865 280,049 101,816 266,430 Current planning 483,800 799,500 453,530 345,970 482,519 Total planning and development 839,500 1,181,365 733,579 447,786 748,949 Public works: Public works administration 133,765 63,683 154,870 (91,187) 110,008 Development and traffic 559,687 772,787 706,364 66,423 754,425 Maintenance/operations - St. 476,963 770,113 96,345 673,768 517,252 Maintenance/operations - L & L 569,352 676,552 543,299 133,253 341,750 Capital projects administration 2,094 (318,244) (83,350) (234,894) 18,439) Total public works 1,741,861 1,964,891 1,417,528 547,363 1,704,996 Total expenditures 11,952,850 13,200,210 11,668,362 1,531,848 11,029,888 Excess (deficiency) of revenues over (under) expenditures 399,147 (888,212) 7,441,845 8,330,057 6,637,587 Other financing sources (uses): Transfers in 98,700 475,300 238,565 (236,735) 79,510 Transfers out (328,180) (1,555,785) (828,438) 727,347 (1,359,255 Total other financing sources (uses) (229,480) (1,080,485) (589,873) 490,612 1,279,745) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 169,667 (1,968,697) 6,851,972 8,820,669 5,357,842 Fund balance at beginning of year, as restated 28,772,498 28,772,498 28,772,498 - 23,319,556 Fund balance at end of year $ 28,942,165 26,803,801 35,624,470 8,820,669 28,677,398 73 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Taxes Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 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 with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 13,2195165 1,410,644 1,517,600 106,956 1,254,407 60,800 60,800 185,625 124,825 1515458 1,279,965 1,471,444 1,703,225 231,781 1,405,865 25152,482 3,012,672 837,605 2,175,067 532,773 2,1525482 3,012,672 837,605 2,175,067 532,773 (872,517) (1,541,228) 865,620 25406,848 873,092 (338,760) (1,941,399) 492,139) 1,449,260 338,842 (338,760) (1,941,399) 492,139 1,449,260 (338,842) (1,211,277) (3,482,627) 373,481 3,856,108 534,250 3,377,365 3,377,365 3,377,365 - 2,843,115 $ 2,166,088 (105,262) 3,750,846 3,856,108 3,377,365 74 SUPPLEMENTARY SCHEDULES 75 Assets Cash and investments Cash with fiscal agent Accounts receivable Prepaid items Interest receivable Notes receivable Due from other funds Due from other governments Advances to other funds Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deferred revenue Deposits payable Due to other funds Total liabilities Fund balances: Reserved for: Debt service Bond projects Prepaid items Advances to other funds Notes receivable Unreserved, reported in: Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances CITY OF LA QUINTA Non -Major Governmental Funds Combining Balance Sheet June 30, 2001 Special Revenue Funds Lighting State Federal and Public Village Gas Tax Assistance Landscape SLESF Quimby Safety Parking $ 351,659 - 105,414 54,140 505,277 11,543 - 273,804 18053 - - - - $ 351,659 273,804 123,567 54,140 505,277 11,543 - 273,804 - - - - - 273,804 - - - - 547,608 - - - - - 351,659 (273,804) 123,567 54,140 505,277 11,543 - 351,659 (273,804) 123,567 54,140 505,277 11,543 - $ 351,659 273,804 123,567 54,140 505,277 11,543 - 76 Debt Special Revenue Funds Service Fund Low/ Moderate Low/ Low/ Income Moderate Moderate South Coast Housing- Bond- Bond- Financing Air Quality LLEBG PA No. 1 PA No. 1 PA No. 2 Authority 56,063 6,566 2,985,890 - 340,862 8,363 - - - 1,550,700 2,390,586 1,546 - - 88,299 - - - - 833 - - - - 2,861,382 - - - - - 39,929 - - - - - 511,903 - - - 56,063 6,566 6,487,403 1,551,533 2,731,448 9,909 2,253 - 14,102 - - - - - 751,732 - - - 14,283 - - - - - - 718,603 148,567 - 2,253 - 780,117 718,603 148,567 - 9,909 _ - - - 1,550,700 2,390,586 - - - 511,903 - - - - - 2,861,382 - - - 53,810 6,566 2,3341001 (717,770) 192,295 - 53,810 6,566 5,707,286 832,930 2,582,881 9,909 - 56,063 6,566 6,487,403 1,551,533 2,731,448 9,909 (Continued) 77 CITY OF LA QUINTA Non -Major Governmental Funds Combining Balance Sheet (Continued) Capital Projects Funds Parks & Civic Library Community Infastructure Transportation Recreation Center Development Center Assets Cash and investments 5,026,077 3,519,560 1,035,979 1,233,222 662,901 275,447 Cash with fiscal agent - - _ _ _ _ Accounts receivable - - _ - _ _ Prepaid items - - _ _ _ _ Interest receivable - - _ _ _ _ Notes receivable - - _ _ Due from other funds - - _ - Due from other governments - _ _ _ Advances to other funds - - _ _ _ _ Total assets 5,026,077 3,519,560 1,035,979 1,233,222 662,901 275,447 Liabilities and Fund Balances Liabilities: Accounts payable 42,030 - - - _ _ Deferred revenue - Deposits payable - Due to other funds 476,237 Total liabilities 518,267 Fund balances: Reserved for: Debt service - _ - Bond projects - _ _ _ Prepaid items - _ - _ Advances to other funds - - _ _ Notes receivable - - _ _ Unreserved, reported in: Special revenue funds - _ _ - _ _ Capital projects funds 4,507,810 3,519,560 1,035,979 1,233,222 662,901 275,447 Total fund balances 4,507,810 3,519,560 1,035,979 1,233,222 662,901 275,447 Total liabilities and fund balances 5,026,077 3,519,560 1,035,979 1,233,222 662,901 275,447 78 Capital Proiects Funds A.D. 97-1 Financing Redevelopment Redevelopment Street Park LQ Norte A.D. 2000-1 Authority Agency Agency Facility Facility Construction Phase VI Projects PA No.I PA No.2 Totals 61,191 16,149 63,129 1,209,088 94,209 2,955,712 3,284,588 23,863,029 _ _ - - 542,000 5,357,019 214,396 10,056,247 _ - 60,900 149,199 3,515 - 3,515 - - 833 - _ _ - 2,861,382 - - - 259,634 - - - 259,634 331,886 511,903 61,191 16,149 63,129 1,468,722 636,209 8,316,246 3,559,884 38,037,628 11,689 4,791 74,865 - - 1,025,536 14,283 511,026 - - - 2,128,237 511,026 - 11,689 4,791 3,242,921 9,909 -- - - - - 542,000 5,357,019 214,396 10,054,701 - 3,515 - 3,515 _ - 511,903 - 2,861,382 - - 2,641,284 61,191 16,149 63,129 957,696 94,209 2,944,023 3,340,697 18,712,013 61,191 16,149 63,129 957,696 636,209 8,304,557 3,555,093 34,794,707 61,191 16,149 63,129 1,468,722 636,209 8,316,246 3,559,884 38,037,628 79 CITY OF LA QUINTA Non -Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2001 Special Revenue Funds Lighting Gas Federal and Public Village Tax Assistance Landscape SLESF Quimby Safety Parking Revenues: Taxes $ Developer fees - - 3,750 - Intergovernmental 629,332 15,830 - 100,028 - - - Investment income 17,142 - 1,495 5,946 31,282 633 1,009 Special assessments - - 782,610 - - - _ Rental income - _ _ Gain (loss) on sale of land Miscellaneous - _ _ Total revenues 646,474 15,830 787,855 105,974 31,282 633 1,009 Expenditures: Current: General government - _ _ _ _ _ _ Planning and development - _ _ Public works 418,400 - 778,000 Capital outlay - _ _ Debt service: Principal Interest - Total expenditures 418,400 - 778,000 - - - - Excess (deficiency) of revenues over (under) expenditures 228,074 15,830 9,855 105,974 31,282 633 1,009 Other financing sources (uses): Transfers in - - - - - 2,000 - Transfers out - 289,634 - 125,565 100,783 - 31,129 Total other financing sources (uses) - 289,634 - 125,565 100,783 2,000 31,129 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 228,074 (273,804) 9,855 (19,591) (69,501) 2,633 (30,120) Fund balances (deficits) at beginning of year, as restated 123,585 - 113,712 73,731 574,778 8,910 30,120 Fund balances (deficit) at end of year $ 351,659 273,804 123,567 54,140 505,277 11,543 - 80 Special Revenue Funds Low/ Moderate Low/ Low/ Income Moderate Moderate South Coast Housing- Bond- Bond - Air Quaility LLEBG PA No. 1 PA No. 1 PA No. 2 - - 3,737,113 - - _ - 45,848 - - 25,944 49,772 - - - 2,656 2,032 96,383 268,391 74,163 - - 388,121 - - _ - 406,461 - - - - 25,096 - - 28,600 51,804 4,699,022 268,391 74,163 10,699 - 3,265,008 - - 10,699 - 3,265,008 - - 17,901 51,804 1,434,014 268,391 74,163 - 45,400 1,739,031 1,177,000 - - 45,400 1,739,031 1,177,000 - 17,901 6,404 (305,017) (908,609) 74,163 35,909 162 6,012,303 1,741,539 2,508,718 53,810 6,566 5,707,286 832,930 2,582,881 Financing Authority 1,514 678,955 27,615 708,084 9,133 260,000 418,955 688,088 19,996 19,996 10,087 9,909 (Continued) 81 CITY OF LA QUINTA Non -Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Capital Projects Funds Parks & Civic Library Community Street Infastructure Transportation Recreation Center Development Center Facility Revenues: Taxes - _ _ Developer fees - 823,412 413,975 637,564 242,803 110,033 27,696 Intergovernmental - _ _ _ _ _ _ Investment income 210,806 184,044 50,586 61,369 86,245 13,457 2,833 Special assessments - _ _ _ _ - _ Rental income - _ - - Gain (loss) on sale of land - - _ - Miscellaneous - _ - - Total revenues 210,806 1,007,456 464,561 698,933 329,048 123,490 30,529 Expenditures: Current: General government - - - 211,983 - - - Planning and development - _ _ - Public works - Capital outlay 42,030 Debt service: Principal - Interest - Total expenditures 42,030 - - 211,983 - - - Excess (deficiency) of revenues over (under) expenditures 168,776 1,007,456 464,561 486,950 329,048 123,490 30,529 Other financing sources (uses): Transfers in - 1,891,080 - - _ _ _ Transfers out _ 2,253,879 180,903 - - 1,676 - - Total other financing sources (uses) 2,253,879) 1,710,177 - - 1,676 - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (2,085,103) 2,717,633 464,561 486,950 327,372 123,490 30,529 Fund balances (deficits) at beginning of year, as restated 6,592,913 801,927 571,418 746,272 335,529 151,957 30,662 Fund balances (deficit) at end of year 4,507,810 3,519,560 1,035,979 1,233,222 662,901 275,447 61,191 82 Capital Projects Funds A.D.97-1 Financing Redevelopment Redevelopment Park LQ Norte A.D. 2000-1 Authority Agency Agency Facility Construction Phase VI Projects PA No.I PA No.2 Totals _ _ _ _ _ - 3,737,113 6,168 - - - - 5,000 2,316,249 _ _ _ _ _ - 820,906 793 3,475 135,651 48,514 67,250 166,832 1,534,501 - _ _ - - - 782,610 1,067,076 406,461 _ _ _ _ _ - 52,711 6,961 3,475 135,651 48,514 67,250 171,832 10,717,627 211,983 830,458 322,361 4,437,659 - 1,196,400 25,889 - - - 67,919 - 260,000 - 418,955 - - 25,889 - 830,458 322,361 6,592,916 6,961 3,475 109,762 48,514 763,208 (150,529) 4,124,711 - - 74,496 - 3,888,672 1,230,180 7,086,428 (1,580,002) - 2,788,179 1,158,905 (11,472,086) - - (1,505,506) - 1,100,493 71,275 (4,385,658) 6,961 3,475 (1,395,744) 48,514 337,285 (79,254) (260,947) 9,188 59,654 2,353,440 587,695 7,967,272 3,634,347 35,055,654 16,149 63,129 957,696 636,209 8,304,557 3,555,093 34,794,707 83 (This page intentionally left blank) 84 NON -MAJOR 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 that 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. Federal Assistance Fund - To account for revenues from the Community Development Block -- 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 Fund - 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. 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. 85 CITY OF LA QUINTA Special Revenue Funds State Gas Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 413,900 586,678 629,332 42,654 406,326 Investment income 4,500 4,500 17,142 12,642 5,332 Total revenues 418,400 591,178 646,474 5511296 411,658 Expenditures: Current: Public works 418,400 418,400 418,400 - 395,400 Total expenditures 418,400 418,400 418,400 - 395,400 Excess (deficiency) of revenues over (under) expenditures - 172,778 228,074 55,296 16,258 Fund balances at beginning of year 123,585 123,585 123,585 - 107,327 Fund balances at end of year $ 123,585 296,363 351,659 55,296 123,585 86 CITY OF LA QUINTA Special Revenue Funds Federal Assistance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Intergovernmental Investment income Total revenues Other financing sources (uses): 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 with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 340,400 340,000 15,830 (324,170) 30,000 340,400 340,000 15,830 324,170 30,000 - 130,000 289,634 159,634 30,000 - 130,000 289,634 159,634 30,000) 340,400 210,000 (273,804) .p >� L1V,VVV `G/ (483,804) - 483,804 - 87 CITY OF LA QUINTA Special Revenue Funds Lighting and Landscape Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Developer fees Investment income Special assessments Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 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 Budget Original Final Actual $ - - 3,750 4,300 4,300 1,495 773,700 773,700 782,610 778,000 778,000 787,855 778,000 778,000 778,000 778,000 778,000 778,000 - - 9,855 - - 9,855 113,712 113,712 113,712 $ 113,712 113,712 123,567 Variance with Final Budget 2000 Positive (negative) Actual 3,750 34,840 (2,805) - 8,910 785,794 9,855 820,634 - 764,400 - 764,400 9,855 56,234 12,705 12,705 9,855 43,529 - 70,183 9,855 113,712 88 CITY OF LA QUINTA Special Revenue Funds SLEBG Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Intergovernmental Investment income Total revenues Other financing sources (uses): 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 Budget Original Final Actual $ 48,400 173,759 100,028 1,500 1,500 5,946 49,900 175,259 105,974 30,100 173,759 (125,565 30,100 173,759 125,565 19,800 1,500 (19,591) 73,731 73,731 73,731 $ 93,531 75,231 54,140 Variance with Final Budget 2000 Positive (negative) Actual (73,731) 48,372 4,446 4,411 (69,285) 52,783 48,194 48,194 (21,091) (11,Uy1) 39,910 39,910 12,873 60,858 73,731 89 CITY OF LA QUINTA Special Revenue Funds Quimby Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Developer fees Investment income Total revenues Other financing sources (uses): 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 with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 55,000 55,000 - (55,000) 9,000 9,000 31,282 22,282 6400 64,000 31,282 32,718 70,000 329,844 100,783 229,061 70,000 329,844 100,783 229,061 (6,000) (265,844) (69,501) 5741778 574,778 574,778 $ 568,778 308,934 505,277 196,343 196,343 370,640 18,116 388,756 12,356) �12,356 376,400 198,378 574,778 UIC CITY OF LA QUINTA Special Revenue Funds Public Safety Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual _ Year ended June 30, 2001 Variance with — Budget Final Budget 2000 Original Final Actual Positive (negative) Actual — Revenues: Investment income $ 200 200 633 433 4,600 _ Total revenues 200 200 633 433 400 Other financing sources (uses): _ Transfers in 200 2,000 2,000 - 2,000 Total other financing _ sources (uses) 2,000 2,000 2,000 - 2,000 Excess (deficiency) of revenues _ and other financing sources over (under) expenditures and other financing uses 2,200 29200 29633 433 6,600 Fund balances at beginning of year 81910 8,910 85910 - 2,310 Fund balances at end of year $ 11,110 119110 11,543 433 8,910 91 CITY OF LA QUINTA Special Revenue Funds Village Parking Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Ori final Final Actual Positive (negative) Actual Revenues: Investment income $ 1,500 1,500 1,009 491 1,495 Total revenues 11500 19500 1,009 491 1,495 Other financing sources (uses): Transfers out - 29,236 31,129 1,893 - Total other financing sources (uses) - 29,236 31,129 1,893 - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,500 (27,736) (30,120) (2,384) 1,495 Fund balances at beginning of year 30J20 30,120 30,120 - 28,625 Fund balances at end of year $ 31,620 21384 - 2,384 30,120 92 CITY OF LA QUINTA Special Revenue Funds South Coast Air Quality Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with _ Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 21,244 21,244 25,944 49700 23,545 Investment income 800 800 2,656 1,856 1,373 Total revenues 22,044 22,044 28,600 631556 24,918 Expenditures: Current: _ Planning and development 5,700 5,700 10,699 4,999 7,573 Total expenditures 5,700 51700 10,699 41999 73,573 _ Excess (deficiency) of revenues over (under) expenditures 16,344 16,344 173,901 19557 179345 — Fund balances at beginning of year 359909 359909 35,909 - 182564 Fund balances at end of year $ 523253 52,253 53,810 1,557 35,909 93 CITY OF LA QUINTA Special Revenue Funds LLEBG Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 279000 4%564 49,772 Investment income 300 300 2,032 Total revenues 27,300 49,864 51,804 Other financing sources (uses): Transfers out 27,600) 0,164 45,400 Total other financing sources (uses) 27,600 50,164 45,400 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (300) (300) 6,404 Fund balances at beginning of year 162 162 162 Fund balances at end of year $ (138 _(138 6,566 208 1,732 1,940 4,764 4,764 6,704 6,704 162 162 162 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 1 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Taxes $ 3,100,292 3,486,725 3,737,113 250,388 3,194,919 Developer fees - - 45,848 45,848 48,860 Investment income 312,880 312,880 96,383 (216,497) 267,399 _ Rental income 341,000 341,000 388,121 47,121 404,752 Gain (loss) on sale of land 150,000 150,000 406,461 256,461 361,102 Miscellaneous - - 25,096 25,096 - Total revenues 3,904,172 43,290,605 4,699,022 408,417 4,277,032 _ Expenditures: Current: Planning and development 7,508,980 8,725,380 3,265,008 5,460,372 2,164,104 - Total expenditures 7,508,980 8,725,380 39265,008 5,460,372 2,164,104 Excess (deficiency) of revenues _ over (under) expenditures (3,604,808) (4,434,775) 1,434,014 5,868,789 25112,928 Other financing sources (uses): Transfers out (1,739,031) (1,739,031) (1,739,031) - 1,739,297 Total other financing sources (uses) (1,739,031) (1,739,031) (1,739,031) - (1,739,297) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (5,343,839) (6,173,806) (305,017) 5,868,789 373,631 Fund balances at beginning of year, _ as restated 6,012,303 6,012,303 6,012,303 - 6,268,281 Fund balances at end of year $ 668,464 161,503 5,707,286 5,868,789 6,641,912 95 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 1 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 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 Budget Original Final Variance with Final Budget 2000 Actual Positive (negative) Actual 268,391 268,391 32,618 268,391 268,391 32,618 - - - 67,695 - - 67,695 - 268,391 268,391 35,077 (1,784,724) (1,177,000) 607,724 1,570,149 (1,784,724) (1,177,000) 607,724 (1,570,149) - (1,784,724) (908,609) 876,115 (1,605,226) 1,741,539 1,741,539 1,741,539 - 3,346,765 $ 1,741,539 43,185 832,930 876,115 1,741,539 CITY OF LA QUINTA - Special Revenue Funds Low/Moderate Bond - Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 — Original Final Actual Positive (negative) Actual Revenues: _ Investment income $ - - 74,163 74,163 8,734 Total revenues - - 74,163 74,163 8,734 — Expenditures: Current: Planning and development - - - - 24,609 Total expenditures - - - - 24,609 Excess (deficiency) of revenues — over (under) expenditures - - 74,163 74,163 15,875 Other financing sources (uses): Transfers in - - - - 373,267 Transfers out - (2,522,731) - 2,522,731 - Total other financing sours;: 's (uses) - (2,522,731) - 2,522,731 373,267 Excess ;deficiency) of revenues — and other financing sources over (under) expenditures and other financing uses - (2,522,731) 741163 21596,894 357,392 Fund balances at beginning of year 2,508,718 2,508,718 2,508,718 - 2,151,326 Fund balances at end of year $ 2,508,718 14,013 2,582,881 2,596,894 2,508,718 97 (This page intentionally left blank) 98 MAJOR AND NON -MAJOR 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 Authority Fund - 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. 99 CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 11,514 1,514 - Rental income 678,955 678,955 678,955 - 679,670 Miscellaneous 9,175 9,175 27,615 18,440 - Total revenues 688,130 688,130 708,084 19,954 67%670 Expenditures: Current: Planning and development % 175 9,175 9,133 42 9,648 Debt service: Principal 2%000 260,000 260,000 - 250,000 Interest 418,955 418,955 418,955 - 429,670 Total expenditures 688,130 688,130 6889088 42 6899318 Excess (deficiency) of revenues over (under) expenditures - - 19,996 199996 9,648 Other financing sources (uses): Transfers in - - - - 8,333 Total other financing sources (uses) - - - - 8,333 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - - 19,996 19,996 (19315) Fund balances (deficit) at beginning of year 10,087 109087 10,087 - 89772 Fund balances (deficit) at end of year $ (10,087) (109087 9,909 19,996 10,087 100 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 1 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 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): Transfers in Transfers out 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, as restated Fund balances at end of year Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 11,489,722 13,946,901 14,948,451 1,001,550 12)779,677 - - 575,845 575,845 588,883 11,489,722 13,946,901 15,524,296 1,577,395 13,368,560 221,000 236,280 237,341 (1,061) 214,629 1,352,660 3,349,544 3,349,544 - 1,352,660 3,703,920 4,228,397 4,228,397 - 3,707,492 6,084,577 6,069,687 6,231,592 (161,905) 6,842,720 11,362,157 13,883,908 14,046,874 (162,966) 12,117,501 127,565 62,993 1,477,422 1,414,429 1,251,059 1,739,297 1,739,031 1,739,031 - 1,739,297 (981,937) (3,888,672) (3,888,672) - (1,855,699) - - - - 362,208 757,360 (2,149,641) (2,149,641) - 245,806 884,925 (2,086,648) (672,219) 1,414,429 1,496,865 131,132 131,132 131,132 - 2,690,106 $ 1,016,057 (1,955,519 (541,087) 1,414,429 4,186,971 101 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Year ended June 30, 2001 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): Transfers in Transfers out 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, as restated Fund balances at end of year Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 4,786,659 5,641,374 6,070,400 429,026 5,017,628 - - 84,159 84,159 521296 43,786,659 5,641,374 6,154,559 513,185 5,069,924 88,770 88,770 98,580 155,531 155,531 155,531 1,005,741 912,016 1,229,894 4,142,833 4,716,188 4,717,789 5,392,875 5,872,505 6,201,794 (9,810) 82,987 152,340 (317,878) 1,042,718 (1,601) 3,716,567 (329,289) 4,994,612 (606,216) (231,131) (47,235) 18306 75,312 338,760 338,760 338,760 - 338,842 (152,668) (1,230,180) (1,230,180) - (493,939) - - - - 435,708 186,092 (891,420) (891,420) - 280,611 (420,124) (1,122,551) (938,655) 183,896 355,923 (5,320,288) (5,320,288) (5,320,288) - 616,620 $ 5,740,412 6,442,839 6,258,943 183,896 972,543 102 MAJOR AND NON -MAJOR 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, prior to adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this date, and is budgeted by the Council through adoption of the annual capital improvement program budget. Transportation Fund, Parks and Recreation Fund, Civic Center Fund, Library Development Fund, Community Center Fund, Street Facility Fund, Park Facility Fund — To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City's infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Six new funds have been established to account for the specific impact areas of these fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program budget. 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. Assessment District 2000-1 Phase VI Fund — To account for the bond proceeds and other funding that will be used for improvements to Assessment District 2000-1. 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. 103 CITY OF LA QUINTA Capital Projects Funds Infastructure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Revenues: Developer fees Investment income Total revenues Expenditures: Capital projects Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 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 Budget Original Final Variance with Final Budget Actual Positive (negative) 2000 $ - - - - 722,117 358,989 358,989 210,806 (148,183) 408,366 358,989 358,989 210,806 (148,183) 1,130,483 - 46,700 42,030 4,670 266,909 - 4631700 421030 4,670 266,909 358,989 312,289 168,776 (143,513) 863,574 (3,386,343) (5,298,092) 2,253,879) 3,044,213 (3,905,989) (3,386,343) (5,298,092) 2,253,879 3,044,213 (3,905,989) (3,027,354) (4,985,803) (2,085,103) 2,900,700 (3,042,415) 6,592,913 6,592,913 6,592,913 - 9,635,328 $ 3,565,559 1,607,110 4,507,810 2,900,700 6,592,913 104 CITY OF LA QUINTA Capital Projects Funds Capital Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 — Original Final Actual Positive (negative) Actual Revenues: Developer fees Intergovernmental Total revenues Expenditures: Capital projects Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 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 $ 20,000 515,784 276,149 (239,635) 563,056 4,697,200 18,951,359 6,414,543 (12,536,816) 3,728,384 4,717,200 19,467,143 6,690,692 (12,776,451) 43291,440 8,985,217 44,512,311 14,388,395 30,123,916 11,906,629 745,345 745,345 745,345 - 50,000 65,683 65,683 65,683 - - 9,796,245 45,323,339 15,199,423 30,123,916 11,956,629 (5,079,045) (25,856,196) 8,508,731 17,347,465 7,665,189 5,079,045 25,856,196 8,508,731 (17,347,465) 7,665,189 5,079,045 25,856,196 8,508,731 (17,347,465) 7,665,189 105 Revenues: Developer fees Investment income Total revenues Other financing sources (uses): Transfers in Transfers out CITY OF LA QUINTA Capital Projects Funds Transportation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 284,000 284,000 823,412 539,412 779,825 23,100 23,100 184,044 160,944 229102 307,100 307,100 1,007,456 700,356 801,927 1,891,080 1,891,080 1,891,080 - - (1,264,322) (1,506,322) (180,903) 1,325,419 - Total other financing sources (uses) 626,758 384,758 1,710,177 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 933,858 691,858 2,717,633 Fund balances at beginning of year 801,927 801,927 801,927 Fund balances at end of year $ 1,735,785 1,493,785 3,519,560 1,325,419 - 2,025,775 801,927 2,025,775 801,927 106 CITY OF LA QUINTA Capital Projects Funds Parks and Recreation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with -- Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Developer fees $ - 2012000 413,975 212,975 5562103 Investment income - 20,500 50,586 30,086 152315 Total revenues - 221,500 464,561 243,061 5712418 Fund balances at beginning of year 571,418 5715418 5711418 - - Fund balances at end of year $ 571,418 792,918 1,0352979 2435061 5712418 107 CITY OF LA QUINTA Capital Projects Funds Civic Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Developer fees $ - 284,500 6371564 353,064 725,367 Investment income - 19,400 61,369 41,969 20,905 Total revenues - 303,900 698,933 395,033 746,272 Expenditures: Current: General government 203,700 203,700 211,983 8,283 - Total expenditures 203,700 203,700 211,983 8,283 - Excess (deficiency) of revenues over (under) expenditures (203,700) 100,200 486,950 386,750 746,272 Fund balances at beginning of year 746,272 746,272 746,272 - - Fund balances at end of year $ 542,572 846,472 1,233,222 386,750 746,272 108 CITY OF LA QUINTA -- Capital Projects Funds Library Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and. Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 — Original Final Actual Positive (negative) Actual Revenues: _ Developer fees $ 1504000 150,000 242,803 92,803 326,539 Investment income 17,900 17,900 86,245 68,345 8,990 Total revenues 167,900 167,900 329,048 161,148 335,529 Other financing sources (uses): Transfers in 1,386,518 - - - - _ Transfers out (525,000) (525,000) 1,676 523,324 - Total other financing _ sources (uses) 861,518 (525,000) (1,676) 523,324 - Excess (deficiency) of revenues and other financing sources — over (under) expenditures and other financing uses 1,029,418 (357,100) 327,372 684,472 335,529 _ Fund balances at beginning of year 335,529 335,529 335,529 - - Fund balances at end of year $ 1,364,947 21,571 662,901 684,472 335,529 109 Revenues: Developer fees Investment income Total revenues Fund balances at beginning of year CITY OF LA QUINTA Capital Projects Funds Community Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual $ 53,500 53,500 110,033 5,100 5,100 13,457 58,600 58,600 123,490 151,957 151,957 151,957 Fund balances at end of year $ 210,557 210,557 275,447 56,533 8,357 64,890 147,886 4,071 151,957 64,890 151,957 110 CITY OF LA QUINTA Capital Projects Funds Street Facility Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 9,500 9,500 272696 182196 26,162 Investment income 1,000 1,000 2,833 1,833 42500 Total revenues 102500 10,500 302529 20,029 303662 Fund balances at beginning of year 30,662 302662 3002 - - Fund balances at end of year $ 412162 412162 61,191 20,029 30,662 111 CITY OF LA QUINTA Capital Projects Funds Park Facility Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 3,000 Investment income 200 Total revenues 3,200 Fund balances at beginning 3,000 6,168 3,168 200 793 593 3,200 6,961 3,761 8,934 254 9,188 of year 9,188 9,188 9,188 - - Fund balances at end of year $ 12,388 12,388 16,149 3,761 9,188 112 CITY OF LA QUINTA Capital Projects Funds A.D. 97-1 LQ Norte Construction Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 32475 3,475 42444 Total revenues - - 3,475 3,475 4,444 Expenditures: Current: Planning and development - - - - 125,584 Total expenditures - - - - 125,584 Excess (deficiency) of revenues over (under) expenditures - - 3,475 3,475 (121,140) Fund balances at beginning of year 59,654 59,654 59,654 - 180,794 Fund balances at end of year $ 59,654 59,654 63,129 3,475 59,654 113 CITY OF LA QUINTA Capital Projects Funds A.D. 2000-1 Phase VI Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 135,651 135,651 20,336 Special assessments - - - - 345,837 Total revenues - - 135,651 135,651 366,173 Expenditures: Capital projects - - 25,889 (25,889) - Total expenditures - - 25,889 (25,889) - Excess (deficiency) of revenues over (under) expenditures - - 109,762 109,762 366,173 Other financing sources (uses): Transfers in - - 74,496 74,496 - Transfers out - (2,188,059) (1,580,002) 608,057 - Proceeds of bonds - - - - 2,240,013 Total other financing sources (uses) - (2,1883,059) (1,505,506) 682,553 2,240,013 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (2,188,059) (1,395,744) 792,315 2,606,186 Fund balances at beginning of year 2,353,440 2,353,440 2,353,440 - - Residual equity transfer - - - - 252,74 Fund balances at end of year $ 2,353,440 165,381 957,696 792,315 2,353,440 114 CITY OF LA QUINTA Capital Projects Funds Financing Authority Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 48,514 48,514 14,773 Total revenues - - 48,514 48,514 14,773 Other financing sources (uses): Transfers out - (517,732) - 517,732 8,333 Total other financing sources (uses) - (517,732) - 517,732 8,333 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (517,732) 48,514 566,246 6,440 Fund balances at beginning of year 587,695 587,695 587,695 - 581,255 Fund balances at end of year $ 587,695 69,963 636,209 566,246 587,695 115 CITY OF LA QUINI'A Capital Projects Funds Redevelopment Agency Project Area No. 1 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual Revenues: Investment income $ 290,400 290,400 67,250 (223,150) 115413 Total revenues 2901,400 290,400 673,250 (223,150) 111,413 Expenditures: Current: Planning and development 96731822 1,044,992 83031458 214,534 783,471 Capital projects - - - - 1065773 Total expenditures 967,822 1,044,992 830,458 214,534 8905244 Excess (deficiency) of revenues over (under) expenditures (677,422) (754,592) (763,208) (8,616) 878,831) Other financing sources (uses): Transfers in 1,692,447 3,888,672 3,888,672 - 1,855,699 Transfers out (477,375) (5,023,815) (2,788,179) 21235,636 (1,428,676) Proceeds of advances - - - - 107,273 Total other financing sources (uses) 1,2155072 (15135,143) 1,100,493 2,235,636 53431296 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 537,650 (1,889,735) 337,285 2,227,020 (344,535) Fund balances at beginning of year 7,967,272 7,967,272 7,9675272 - 8,3115807 Fund balances at end of year $ 8,504,922 6,077,537 8,304,557 29227,020 7,967,272 116 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2001 Variance with Budget Final Budget 2000 Original Final Actual Positive (negative) Actual 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): Transfers in Transfers out 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 Fund balances at end of year $ - - 5,000 5,000 5,000 38,490 38,489 166,832 128,343 98,028 38,490 38,489 171,832 133,343 103,028 357,410 442,910 322,361 120,549 400,721 357,410 442,910 322,361 120,549 400,721 (318,920) (404,421) (150,529) 253,892 297,693 152,668 1,230,180 1,230,180 - 493,939 - (2,495,473) (1,158,905) 1,336,568 (232,037) 1,500,000 152,668 (1,265,293) 71,275 1,336,568 1,761,902 (166,252) (1,669,714) (79,254) 1,590,460 1,464,209 3,634,347 3,634,347 3,634,347 - 2,170,138 $ 3,468,095 131964,633 3,5559093 1,5909460 3,634,347 117 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, 2000-1 - To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. 119 CITY OF LA QUINTA Agency Funds Combining Balance Sheet June 30, 2001 Arts in Public Places Assessment District No. 88-1 Assessment District No. 89-2 Assessment District No. 90-1 Assets Cash and investments $ 713,358 202,741 250,979 243,696 Total assets $ 713,358 202,741 250,979 243,696 Liabilities Accounts payable $ 8,500 - - - Deposits payable 704,858 - - - Due to bondholders - 202,741 250,979 243,696 Total liabilities $ 713,358 202,741 250,979 243,696 120 Assessment Assessment Assessment Assessment District District District District No. 91-1 No. 92-1 No. 97-1 No. 2000-1 2001 503,421 390,903 123,072 399,839 2,828,009 503,421 390,903 123,072 39%839 2,828,009 503,421 390,903 8,500 - - 704,858 123,072 399,839 2,114,651 123,072 399,839 2,828,009 121 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 2001 Balance at June 30, 2000 Additions ARTS IN PUBLIC PLACES Balance at Deletions June 30, 2001 Assets Cash and investments $ 670,159 238,138 (194,939 713,358 Liabilities Accounts payable 694 28,119 (20,313) 8)500 Deposits payable 669,465 268,124 (232,731) 704,858 Total liabilities $ 670,159 296,243 253,044 713,358 ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments $ 169,150 97,164 63,573) 202,741 Liabilities Due to bondholders $ 169,150 104,269 (70)678) 202,741 ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments $ 228,282 135,472 (112,775) 250,979 Liabilities Due to bondholders $ 228,282 148,023 (125,326) 250,979 (Continued) 122 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) — Balance at Balance at June 30, 2000 Additions Deletions June 30, 2001 ASSESSMENT DISTRICT NO. 90-1 Assets Cash and investments $ 212,518 146,284 115,106 243,696 — Liabilities Due to bondholders $ 212,518 157,529 126,35j) 243,696 ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments $ 4579828 271,102 (225,509) 503,421 Liabilities — Due to bondholders $ 457,828 288,586 (2429993) 503,421 — ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments $ 339,630 2349628 (183,355) 3909903 Liabilities Due to bondholders $ 339,630 246,613 (195,340 3909903 (Continued) 123 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at June 30, 2000 Additions Deletions June 30, 2001 ASSESSMENT DISTRICT NO. 97-1 Assets Cash and investments $ 123,312 71,276 (71,516) 123,072 Liabilities Due to bondholders $ 123,312 77,484 77,724) 123,072 ASSESSMENT DISTRICT NO.2000-1 Assets Cash and investments $ 282,927 317,981 (201,069) 399,839 Liabilities Due to bondholders $ 282,927 327,936 (211,024) 399,839 TOTALS -ALL AGENCY FUNDS Assets Cash and investments $ 2,483,806 1,512,045 1,167,842 21828,009 Total assets $ 2,483,806 1,512,045 (1,167,842) 2,828,009 Liabilities Accounts payable $ 694 28,119 (20,313) 8,500 Deposits payable 66%465 268,124 (232,731) 704,858 Due to bondholders 1,8139647 1,350,440 1104%436 2,114,651 Total liabilities $ 29483,806 1,646,683 1,302,480 2,828,009 124 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 125 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds Schedule by Source 1 June 30, 2001 Governmental funds capital assets: Land $ 13,981,170 Buildings and improvements 14,986,522 Equipment and furniture 1,571,276 Vehicles 161,052 Infrastructure 3 09,73 9,666 Construction in progress 19,3 87, 875 Total governmental funds capital assets $ 359,827,561 Investment in general fixed assets by source: General fund $ 231)809,779 Capital projects funds 321,978,742 Redevelopment agency 14,039,040 Total governmental funds capital assets $ 3 59, 827, 561 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service fund are excluded from the above amounts. Generally, the capital assets of the internal service funds are included as governmental activities in the statement of net assets. 126 4 _ CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity _ June 30, 2001 Buildings and Equipment Construction Function and Activity Land Improvements and Furniture Vehicles Infrastructure in Progress Totals i General government: Legislative $ - - 8,572 - - - 8,572 City manager 6,951,090 121,867 156,527 - - - 7,229,484 Economic _ development - - 13,551 - - - 13,551 Personnel - 25,304 4,036 - - - 29,340 Finance - - 91,340 - - - 91,340 Central services - - 197,311 - - - 197,311 City clerk - - 204,454 - - - 204,454 Total general government 6,951,090 147,171 675,791 - - - 7,774,052 Public safety: Police - - 33,790 - - - 33,790 Building and safety administration - - 75,503 - - - 75,503 Code compliance - - 20,172 - - - 20,172 Animal control - - 2,546 - - - 2,546 Building - - 12,110 - - - 12,110 Emergency services - 1,792 53,714 - - - 55,506 Fire - - - 161,052 - - 161,052 Civic center building - 9,744,142 83,908 - - 1,676 9,829,726 Total public safety - 9,745,934 281,743 161,052 - 1,676 10,190,405 Community services: Community services administration - 2,024,311 45,952 - 1,018,163 - 3,088,426 Parks and recreation i programs - 1,971,294 16,082 - - - 1,987,376 Senior center - - 997 - - - 997 Total community _ services - 3,995,605 63,031 - 1,018,163 - 5,076,799 Community development: Community development administration - - 107,206 - - - 107,206 Redevelopment agency 7,030,080 880,000 - - - 6,128,960 14,039,040 Total community development 7,030,080 880,000 107,206 - - 6,128,960 14,146,246 Public works: Public works administration - 4,000 70,514 - - - 74,514 Development and _ traffic - - 141,507 - 299,066,788 12,462,504 311,670,799 Street maintenance and operations - 12,742 83,482 - 2,028,035 - 2,124,259 Lighting landscape _ maintenance and operations - 201,070 142,072 - 7,626,680 794,735 8,764,557 Capital projects - - 57930 - - - 5,930 Total public works - 217,812 443,505 - 308,721,503 13,257,239 322,640,059 Total $ 13,981,170 14,986,522 1,571,276 161,052 309,739,666 19,387,875 359,827,561 - This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service fund are excluded from the above amounts. Generally, the capital assets of the internal service funds are included as governmental activities in the statement of net assets. 127 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity ' Year ended June 30, 2001 Function and Activity General government Public safety Community services Community development Public works Total Governmental Governmental Funds Capital Funds Capital Assets Assets June 30, 2000 Additions Deletions June 30, 2001 7,777,154 68,159 (71,261) 7,774,052 10,125,883 87,404 (22,882) 1011903405 5,066,406 30,243 (19,850) 5,076,799 14,142,674 3,572 - 141146,246 311,789,643 10,850,416 - 32216401)059 $ 348,901,760 11,03%794 113,993 3591,82711561 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service fund are excluded from the above amounts. Generally, the capital assets of the internal service funds are 128 TABLE 1 CITY OF LA QUINTA General Fund Expenditures by Function Last Ten Fiscal Years Fiscal Year Ending General Public Public Community Planning & Capital June 30 Government Safety Works Service Development Projects Total 1992 $ 1,921,155 2,155,813 618,612 157,897 904,171 11,813 5,769,461 1993 1,807,205 2,393,202 6009253 146,686 884,537 - 5,831,883 1994 2,359,673 2,786,575 673,144 11 %265 5111416 - 6,450,073 1995 1,565,265 3,143,697 5769304 199,115 538,610 282,113 65305,104 1996 1,793,301 3,227,438 813,352 413,142 453,656 201,475 6,902,364 1997 2,376,935 3,442,056 889,694 4692110 455,563 170,000 72803,358 1998 2,229,389 4,099,523 1,159,372 494,402 345,054 - 8,327,740 1999 2,473,241 4,468,294 1,546,650 732,741 626,074 - 9,847,000 2000 2,814,604 4,992,811 1,704,996 768,528 748,949 - 11,029,888 2001 3,0639641 5,636,154 1,417,528 817,460 733,579 - 11,668,362 Source: City of La Quinta Audited Financial Statements 130 TABLE 2 CITY OF LA QUINTA 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 1992 $ 3,135,044 576,293 930,503 488,015 (1) 261,380 120,867 5,512,102 1993 3,581,830 622,107 1,157,587 384,000 (1) 238,321 219,641 6,203,486 1994 4,212,604 777,241 1,600,032 469,695 (1) 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 5,393,456 998,030 815,980 610,873 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 2000 8,888,825 2,493,360 2,388,749 1,922,097 - 1,868,073 106,371 17,667,475 2001 10,331,970 2,057,423 2,164,891 1,998,589 - 2,513,789 43,545 19,110,207 (1) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source Source: City of La Quints Audited Financial Statements 131 TABLE 3 CITY OF LA QUINTA Property Tax Levies and Collections Last Ten Fiscal Years Percent of Fiscal Year Total Current Percent Delinquent Total Ending Tax Tax of Levy Tax Collections June 30 L yy Collection Collected Collections to Tax Lew 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 8243,073 760,350 92.3% - 92.3% 1998 886,175 980,838 110.7% - 110.7% 1999 991,001 11148,040 115.8% - 115.8% 2000 1,001,074 1,005,983 100.5% - 100.5% 2001 1,071,723 1,091,128 101.8% - 101.8% 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. Source: City of La Quinta and County of Riverside 132 TABLE 4 CITY OF LA QUINTA Schedule of Net Taxable Value Last Ten Fiscal Years Fiscal Year Assessed Less Less Net Ending Secured Unsecured Property Property Homeowner's Taxable June 30 Pro a PropeM Value Exemptions Exemptions Value 1992 $ 11594,767,374 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 20,518,400 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 18,84400 2,324,438,867 9,676,787 24,877,018 2,289,885,062 1999 2,674,887,437 181756,736 2,693,644,173 10,998,340 27,581,722 2,655,064,111 2000 2,665,520,656 18,712,736 2,684,233,392 11,655,584 28,259,200 2,644,318,608 2001 3,162,945,116 30,599,753 3,193,544,869 19,757,668 30,391,400 3,143,395,801 (1) Homeowner's exemption not available Source: County of Riverside 133 CITY OF LA QUINTA Property Tax Rates - Direct and Overlapping Governments Last Five Fiscal Years (per $100 of Assessed Value) General Desert Sands Unified College of the Desert Coachella Valley Water District Total Tax Rate Source: County of Riverside TABLE 5 2000/01 1999/00 1998/99 1997/98 1996/97 1.00000 1.00000 1.00000 1.00000 1.00000 0.09750 0.09750 0.09750 0.09750 0.09750 0.00000 0.00000 0.00000 0.00000 0.00000 0.02080 0.02080 0.02080 0.02080 0.02080 1.11830 1.11830 1.11830 1.11830 1.11830 134 TABLE 6 — CITY OF LA QUINTA Special Assessment Billings and Collections Last Ten Fiscal Years Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billings Collections (1) to Billings _ 1992 $ 5579574 5529249 99.0% 1993 5599029 548,291 98.0% 1994 766,011 734,560 95.9% 1995 836,502 7373,700 88.2% _ 1996 7299647 6999351 95.9% 1997 791,012 757,256 95.7% 1998 7919012 7619109 96.2% 1999 790,532 7709164 97.4% 2000 8339630 8009825 96.0% 2001 835,577 803,756 96.2% (1) Includes Prepayments and Foreclosures Source: Muni Financial Services 135 TABLE 7 CITY OF LA QUINTA Schedule of Direct and Overlapping Bonded Debt June 30, 2001 Percent June 30, 2001 Direct and Overlapping Bonded Debt Applicable Bonded Debt Riverside County General Fund Obligations 0.986% $6,190,196 Riverside County Board of Education Certificates of Participatioi 0.986% 156,400 Desert Community College District Certificates of Participation 3.949 17,889 Desert Sands Unified School District Certificates of Participation 8.727 2,218,485 Desert Sands Unified School District Lease Tax Obligation 8.727 4,228,184 Desert Sands Unified School District Community Facilities No.l 100.000 2,285,000 Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation 6.484 850,052 Coachella Valley County Water District, I.D. #55 69.480 7,361,406 Coachella Valley County Water District, I.D. #58 2.576 185,343 Coachella Valley Unified School District 6.212 1,203,530 City of La Quinta General Fund Obligations (Finance Authority) 100.000 7,750,000 City of La Quinta 1915 Act Bonds 100.000 8,235,000 Total Direct and Overlapping Bonded Debt $40,681,485 (1) Note: (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue, tax allocation bonds and nonbonded capital lease obligations. Source: California Municipal Statistics, Inc. 136 CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 2001 Net Assessed Valuation _ Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin $3,143,395,801 $471,5091370 -0 $471,50%370 TABLE 8 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 137 TABLE 9 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Nine Fiscal Years Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1992 $ 182,784 - 182,784 182,784 1.00 1993 548,352 - 548,352 548,352 1.00 1994 548,352 - 54831352 548,352 1.00 1995 699,477 155,000 5443,477 699,477 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 43%573 684,573 1.00 2000 679,670 250,000 429,670 679,670 1.00 2001 678,955 260,000 418,955 678,955 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 Quinta 138 CITY OF LA QUINTA Demographic Statistics Last Ten Fiscal Years Total Fiscal Year Population Riverside Ending Square Percent County June 30 Miles (1) Population (2) Change Population (2) 1992 28.0 14,727 12.7% 1,281,000 1993 28.2 15,589 5.9% 1,323,500 1994 28.2 16,680 7.0% 1,357,400 1995 31.2 17,591 5.5% 1,393,500 1996 31.2 18,050 2.6% 15381,879 1997 31.2 185931 4.9% 1,379,956 1998 31.2 205444 8.0% 154415237 1999 31.2 21,763 6.5% 1,4735307 2000 31.2 24,240 10.77% 155225900 2001 31.2 26,321 8.58% 155455387 Source: (1) City of La Quinta (2) State of California Department of Finance TABLE 10 City Population Percent 139 Fiscal Year Ending June 30 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 CITY OF LA QUINTA Property Value and Construction Activity Last Ten Fiscal Years Property Value 1 $ 1,594,767,374 1,773,323,102 1,872,768,156 1,927,834,908 2,043,276,054 2,164,204,951 2,305,593,987 2,674,887,437 2,665,520,656 3,162,945,116 Commercial Construction Units Value 12 7,334,871 7 2,441,392 13 6,081,796 4 1,100,119 8 1,018,940 11 1,876,747 14 2,689,642 19 8,894,767 40 13,071,684 39 15,289,134 (1) From Schedule of Net Taxable Value Source: City of La Quinta TABLE 11 Residential Construction Units Value 320 35,744,443 324 39,145,539 531 79,318,969 238 29,163,494 336 53,973,239 322 36,971,047 461 70,403,691 770 132,521,054 1,590 2922524,629 12069 195,774,186 140 TABLE 12 CITY OF LA QUINTA Principal Taxpayers June 30, 2001 Taxpayer Type of Activity KSL La Quinta Hotel Corp. Hotel KSL PGA West Corporation Residences Sunrise Desert Partners Condominiums KSL Landmark Corporation Vacant Land KSL Land Corporation Residential Land KSL La Quinta Corporation Golf Courses TD Desert Development Residential Land La Quinta Golf Properties, Inc. Golf Course M & H Realty Partnership Shopping Centers Washington Adams Partnership Commercial Tradition Club Associates Recreational, vacant land Source: City of La Quinta 141 TABLE 13 CITY OF LA QUINTA Major Employers June 30, 2001 Employer Employees Activity La Quinta Hotel and Golf Resort 1,500 Resort Hotel PGA West 1,100 Golf Resort Desert Sands Unified School District 550 School District Administration Wal-Mart 250 Retailer The Home Depot 180 Retailer Loew's Home Improvement 150 Retailer Stater Brothers 126 Groceries Vons 103 Groceries Ralphs 100 Groceries City of La Quinta 73 Municipal Government Source: City of La Quinta � i� 142 TABLE 14 CITY OF LA QUINTA Schedule of Insurance in Force June 30, 2001 Company Name Policy Number Coverage Limits Term Premium Hartford PEBA07068 Employee Dishonesty, $1,000,000 12/03/00 - 01 $2,500 Forgery, Computer Fraud General Star IAG371825A All Risk Property Insurance 25,139,000 07/01/01- 02 16,505 Indemnity & Westchester FPL388464 Including Auto Physical Damage Fire (Excluding Quake & Flood) _ Agricultural Ins. CCP5629789 Earthquake & Flood 4,500,000 02/07/01- 02 15,780 Company Real & Personal Property Part of $7,500,000 Including Contigent Tax Interruption California Certificate #5 Comprehensive General $0 Deductible Retention 12/03/00 - 01 60,300 Joint Powers Liability $50 Million Insurace Authority -- California Certificate Worker's Compensation 5,000,000 12/03/00 - 01 37,637 Joint Powers #5009-056 Insurance Authority Greenwich Ins. Co. AC63329789 Earthquake & Flood 3,000,000 02/07/01-02 9,970 Real & Personal Property Part of $7,500,000 Including Contigent Tax Interruption Chubb Custom Special Events $1,000,000 N/A N/C Insurance Source: City of La Quinta 143 TABLE 15 CITY OF LA QUINTA Miscellaneous Statistical Data June 30, 2001 Date of Incorporation ............................... May 2, 1982 Type of City ................................Charter City Form of Government ...........................Counci.l / Manager City Employees ................................. 72.75 City Land Area (square miles) .................................... 31.2 Population ................................. 26,321 Number of Parks ................................. 9 Total Acreage ................................. 40 Miles of Streets ................................. 170.0 Miles of Bike Paths ................................. 9.7 Number of Major Intersections .................................. 45 Number of Traffic Signals and Safety Lighting ....................... 32 Number of Traffic Signs ................................. 2,605 Number of Street Lights ................................. 8 Public Schools ................................. 4 Private Schools ................................. 1 Churches ................................. 3 Banks / Savings and Loan ................................. 3 Number of Single Family Units - Detached .......................... 10,252 Number of Single Family Units - Attached .......................... 2,326 Number of Multiple Family Units ................................ 697 Number of Mobile Homes ................................. 247 Source: City of La Quinta 144 CITY OF LA QUINTA General Fund Balance Trends Last Ten Fiscal Years Fiscal Year Ending June 30 Reserved 1992 $ 63227,579 1993 5,372,575 1994 49354,139 1995 6,100,309 1996 6,680,048 1997 8,202,641 1998 8,915,742 1999 8,8799558 2000 10,565,563 2001 1197469211 Source: City of La Quinta Unreserved Designated Undesignated 76,323 (662,573) 82,056 508,301 3,7921864 -- 4,228,680 -- 5,686,027 -- 5,9365591 -- 8,568,017 -- 14,43%998 -- 18,111,835 -- 23,878,259 -- TABLE 16 Totals 5,641,329 5,962,932 8,147,003 10,328,989 12,366,075 14,13%232 17,483,759 23,3199556 28,677,398 35,624,470 145 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item B Meeting Date: December 12, 2001 TITLE: Month End Cash Report — November 2001 and Other selected Financial Data 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. 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F- a LL V) coi m ��n L, AIF Performance Report http://www.treasurer.ca.gov/laif/performance.htm Philip A gewldes state Treasurer Inside the State Trees rees Office It Local Agency Investment Fund LAW Performance Report Reporting Date: Effective Date: Quarter Yield: Daily: Year: Life: Quarter Ending 9/30/01 Apportionment Rate: Earnings Ratio: Fair Value Factor: Monthly Average For October: Corporate Bonds 4. Commerck Paper 18.15% Time Deposil 9.48% 11 /28/01 11 /28/01 3.66% 3.44% 4.15% 178 4.47% .00012254784317284 1.004705758 3.785% Pooled Money Investment Account Portfolio Composition* $51.2 Billion 10/31/01 Loans Treasuries 5.81 % 11.93% ■Treasuries Igages ❑ Mortgages 1.02% ® Agencies ■ CD's/BN's CD's/BN's 14.48% Agencies 35.53% ❑ Time Deposits Bankers Acceptances ■ Repo ■ Commercial Paper 0 Corporate Bonds Loans ■ Reverses *The PMIA portfolio does not hold any securities of PG&E or Southern California Edison. V U 3 1 of 2 12/03/2001 9:18 AM L• AIF Performance Report http://www.treasurer.ca.gov/laif/performance.htm lam 21 Adobe PDF version of LAIF Performance. 2-1 Help with Adobe Acrobat PDF. O u 4 2 of 2 12/03/2001 9:18 AM FRB: H.1.5--Selected Interested Rat...y Daily Update-- November 30, 2001 http://www.federalreserve.gov/Releases/H15/update/ H.1 Selectee! Interest Rates (Daily) Release Date: November 30, 2001 Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII 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 SELECTED INTEREST RATES Yields in percent per annum Instruments SELECTED INTEREST RATES Federal funds (effective) 1 2 3 Commercial paper 3 4 5 6 Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month CDs (secondary market) 3 7 1-month 3-month 6-month Eurodollar deposits (London) 3 8 1-month 3-month 6-month Bank prime loan 2 3 9 Discount window borrowing 2 10 U.S. Government securities Treasury bills (secondary market) 3 4 4-week 3-month 6-month Treasury constant maturities 11 1-month 3-month 6-month 1-year 2-year 3-year 5-year For immediate release November 30, 2001 Mon Tue Wed Thu Nov 26 Nov 27 Nov 28 Nov 29 2.04 2.01 2.04 2.09 2.00 2.00 2.03 1.98 2.05 2.02 1.99 1.97 2.06 2.05 1.97 1.92 2.00 2.02 1.98 1.98 2.05 2.06 2.04 2.03 2.04 2.07 2.01 1.99 2.07 2.06 2.06 2.06 2.07 2.07 2.07 2.07 2.13 2.07 2.07 2.07 2.04 2.05 2.02 2.10 2.07 2.08 2.04 2.00 2.12 2.13 2.06 2.01 5.00 5.00 5.00 5.00 1.50 1.50 1.50 1.50 1.98 1.98 1.93 1.88 1.94 1.88 1.84 1.77 2.00 1.94 1.88 1.76 2.00 2.01 1.96 1.90 1.98 1.92 1.87 1.80 2.04 1.98 1.92 1.80 2.43 2.36 2.26 2.03 3.22 3.11 3.12 2.87 3.70 3.58 3.60 3.33 4.41 4.32 4.33 4.10 U� 1 of 3 12/03/2001 9:18 AM FRB: H.1*5--Selected Interested Rat ... y Daily Update-- November 30, 2001 http://www.federalreserve.gov/Releases/H 15/update/ 7-year 10-year 20-year 30-year Interest rate swaps 12 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa Baa State & local bonds 13 Conventional mortgages 14 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. FOOTNOTES 4.85 4.77 4.76 4.56 5.05 4.98 4.98 4.79 5.66 5.64 5.63 5.52 5.39 5.37 5.36 5.24 2.62 2.74 2.48 2.49 3.54 3.73 3.42 3.49 4.21 4.40 4.12 4.20 4.64 4.83 4.58 4.65 4.93 5.11 4.88 4.95 5.29 5.47 5.25 5.33 5.57 5.75 5.56 5.63 5.98 6.12 6.03 6.07 7.22 7.12 7.12 7.00 8.01 7.99 7.99 7.86 5.15 The daily effective federal funds rate is a weighted average of rates on brokered trades. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. Annualized using a 360-day year or bank interest. On a discount basis. 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. 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. An average of dealer offering rates on nationally traded certificates of deposit. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 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. Rate for the Federal Reserve Bank of New York. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. International Swaps and Derivatives Association (ISDA) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. by Garban Intercapital plc and published on Reuters Page ISDAFIXI. Source: Reuters Limited. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC. 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 0 66 2 of 3 12/03/2001 9:18 AM FRB: H.1,5--Selected Interested Rat ... y Daily Update-- November 30, 2001 http://www.federalreserve.gov/Releases/H15/update/ 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. Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII Home I Statistical releases Accessibility To comment on this site, please fill out our feedback form. Last update: November 30, 2001 3 of 3 12/03/2001 9:18 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Release I About I Outstanding I Historical discount rates I Historical outstandings I Year end I Data as of November 30, 2001 Commercial Paper Rates and Outstandings Derived from data supplied by The Depository Trust Company Posted December 3, 2001 Yield curve Monev market basis 7 15 30 60 Days to mature ty Financial — -- Nonfinancial •.••• A2/P2 Percent .8 . 7 2.6 2.5 2.4 2.3 2.2 2.1 2.0 4 1.9 AM 1 of 3 0 i� V 12/03/2001 9:18 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Discount rate spread Thirtv-day. A2/P2 less AA nonfinancial commercial pager (dailv) Racic nnintc 150 140 3: 130 120 110 100 F 90 80 70 150 50 40 _ 30 10 01 dAN98 01 J UL98 01 dAN99 01 J UL99 01 JANOO 01 JULOO 01 JAN01 01 JUL01 01 dAN02 ---- A2 /r— --- A2/P2 spread. 5—day movinq averoga Discount rate history Thirtv-dav commercial saner (dailv) Percent 8 7 4 3 2 I r 1 01 dAN98 01 JUL98 01 JAN99 01 J UL99 01 JANOO 01 JULOD 01 dAN01 01 JU L01 01 JAN02 — Financial — -- Nonfinancial -- A2/P2 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars Billions of dollars 2 of 3 0U9 12/03/2001 9:18 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ 1305 120{ 110� 100; 90� 360 350 34C� 3,30 320 310 300 290 280 270 260 20 2-#0 230 220 210 800 01JAN98 01 JUL98 01JAN99 01 JUL99 01JAN00 01JUL00 01 JAN01 01 JUL01 01JAN02 — Financial — -- Ncnfinand al The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve is closed on a business day, yields for the previous business day will appear in the historical discount rates table. This policy is subject to change at any time without notice. Commercial paper outstanding Commercial paper outstanding, miscellaneous categories Volume Statistics 2001:Q3 Release I About I Outstanding I Historical discount rates I Historical outstandings I Year end I Home I Statistical releases Accessibility To comment on this site, please fill out our feedback form. Last update: December 3, 2001 3 of 3 12/03/2001 9:18 AM cu C O Q r M 00 ��O ALL N O t Or U U m o N a) C a) U a) L O a) 7 � 0 N � a) � 0 � 'a N O � � r � C a) v' cc N cn O "� z c0 CD cn N z N C J (A Q N (D 0 ) d' M O 'IT 1�-00 N N o Ca-- moONLOW 00000N (D O w~roc!r LO •L O t0 Nr ACID it000 pYj04 �M r LO 0 '9T M t5-r LOM�MN 006NM00 (�COMO T' O �r N N N r L N 14 O co Q� �MCNtDa)M �N�Nw) M00LO �0N1— W rMNd N M Nr O (DLoCMqq0 Re N It O M V) (p0(0(Y) a) M O� ONr�� ` ZoCMO�00 00 coT- r r 00 00 tiL0)N00�'t co O0P f '^00 Lo1%- � r d' co C � W) r N N 0 O O cu N N N x (D C i cu N U C U N O N N x to U m Q N L CL x O Q N 0 •-' fn a W co U O L - w U N LL N 0 C a) � cu 0 F— x >� Q 0) O 060CL`_ix 0 CL _ a� _ c ~ c > W V Q c a) > c Q cc -O � � }• U OL M co ..• X cc 0 y.. cv a) p w Q 0-H(n0O� Lu (nw0001— z L C O E L a� Q 0 O IRT co 00 N a> a) 0 ICD N N W a a> H Q zw M QiNC0r0M NOOeCO�ma4O �raC6Lr - N0NN0oM00titN� M N cM aD r � r aD F- Z cu F- W W W a W W W 2 U OJ U z a� W LWLw �00. o ��fL'�OJ � U OZ2m c �U—JOWZQ�2Wa W Z U U D J a H Z z Q J J m 5 0 F- "= WZ_OO::)ODCILL� � C�LiUUaoOU�WzQ INVESTMENT ADVISORY BOARD Meeting Date: December 12, 2001 TITLE: Pooled Money Investment Board Report for September 2001 BACKGROUND: Correspondence & Written Material Item C The Pooled Money Investment Board Report for September 2001 is included in the agenda packet. RECOMMENDATION: Receive & File hn M. Falconer, Finance Director September 2001 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA . A COMPARISON OF SEPTEMBER 2001 WITH SEPTEMBER 2000 (DOLLARS IN THOUSANDS) SEPT MBE.R:2001: 'SERTEMBER.2000: CHANGE:... .... Average Daily Portfolio $ 48,017,074 $ 4104689674 +6,548,400 Accrued Earnings $ 169,237 $ 221,615-52,378 I Effective Yield 4.288 6.502 -2.214 I I Average Life -Month End (in Days) 169 192 -23 I Total Security Transactions Amount $ 21,343,348 $ 22,1779686 -834,338 Number 466 481 -15 Total Time Deposit Transactions Amount $ 1,388,500 $ 1,729,190 -340,690 Number 98 136 -38 Average Workday Investment Activity $ 1,196,413 $ 1,195,3" +1,069 Prescribed Demand Account Balances For Services $ 327,851 $ 159,223 +168,628 For Uncollected Funds $ 205,061 $ 231,139 -26,078 1 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 Coupons Certificates of Deposit Bank Notes Bankers' Acceptances Repurchases Federal Agency Discount Notes Time Deposits GNMAs Commercial Paper FHLMC Corporate Bonds Pooled Loans GF Loans Reversed Repurchases Total (All Types) INVESTMENT ACTIVITY. Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month September 30, 2001 PERCENTAGE CHANGEFROM AMOUNT PERCENT PRIOR MONTH $1,634,760 3.34 +.56 0 0.00 0.00 3,505,417 7.15 -.15 0 0.00 0.00 $5,140,177 10.49 +.41 4,039,026 8.24 -.47 6,960,234 14.21 -1.85 1,425,012 2.91 -.47 0 0.00 0.00 0 0.00 0.00 11,063,188 22.58 +5.05 4,844,045 9.89 -.30 898 0.00 0.00 9,840,250 20.08 -3.66 9,267 0.02 0.00 2,403,564 4.91 +.02 3,266,473 6.67 +1.27 0 0.00 0.00 0 0 0 $48,992,134 100.00 SEPTEMBER 2001 NUMBER AMOUNT 466 $ 21,343,348 26 189,693 98 1,388,500 590 $ 22,921,541 4.288 4.482 2 9 AUGUST 2001 NUMBER AMOUNT 542 $ 25,250,087 25 477,781 136 2,165,000 703 $ 27,892,868 4.502 4.571 Pooled Money Investment Account Portfolio Composition $48.9 Billion Corporate Bonds 4.91% Time Deposits 9.89% Loans 6.67% CD's/BN's 17.12% Treasuries IOA9% 4 Mortgages 0.02% Agencies 30.82% 09/30/01 S Treasuries S Mortgages 13 Agencies 0 CD's/BN's ■ Time Deposits 0 Bankers Acceptances ■ Repo 0 Commercial Paper ® Corporate Bonds 0 Loans 0 Reverses 09/04/01 REDEMPTIONS CD DANSKE 3.900% 09/04/01 3.840 $50,000 95 $506,746.08 3.893 CD DANSKE 3.900% 09/04/01 3.840 50,000 95 506,7.46.08 3.893 CP DELAWARE 09/04/01 3.570 41,608 6 24,756.76 3.621 CP DELAWARE 09/04/01 3.570 50,000 6 29,750.00 3.621 CP CITICORP 09/04/01 3.520 50,000 7 34,222.22 3.571 CP CITICORP 09/04/01 3.520 50,000 7 34,222.22 3.571 CP HOUSEHOLD _ 09/04/01 3.460 50,000 8 38,444.44 3.510 CP HOUSEHOLD 09/04/01 3.460 50,000 8 38,444.44 3.510 CP CITICORP 09/04/01 3.510 50,000 8 39,000.00 3.561 CP CITICORP 09/04/01 3.510 50,000 8 39,000.00 3.561 CP CONAGRA 09104/01 3.640 20,000 12 24,266.67 3.695 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP GECC 09/04/01 3.660 50,000 35 177,916.67 3.724 CP CITICORP 09/04/01 3.700 50,000 50 256,944.44 3.770 CP CITICORP 09/04/01 3.700 50,000 50 256,944.44 3.770 CP SALOMON 09/04/01 3.710 50,000 60 309,166.67 3.784 CP SALOMON 09/04/01 3.710 50,000 60 309,166.67 3.784 CP CRC 09/04/01 3.600 50,000 76 380,000.00 3.677 CP CRC 09/04/01 3.600 50,000 76 380,000.00 3.677 CP CRC 09/04/01 3.630 50,000 78 393,250.00 3.709 CP CRC 09/04/01 3.630 50,000 78 393,250.00 3.709 CP FMCC 09/04/01 3.750 50,000 89 463,541.67 3.837 CP AMER EXP 09/04/01 3.750 50,000 90 468,750.00 3.838 CP AMER EXP 09/04/01 3.750 50,000 90 468,750.00 3.838 CP SRAC 09/04/01 4.100 50,000 95 540,972.22 4.202 CP NCAT 09/04/01 3.830 50,Op0 96 51.0,666.67 3.923 CP NCAT 09/04/01 3.830 50,000 96 510,666.67 3.923 PURCHASES CP CAMPBELL 09/05/01 3.700 40,000 CP CONAGRA 09/10/01 3.760 42,000 CP SRAC 09/12/01 3.650 10,000 CP SRAC 09/12/01 3.650 50,000 CP GMAC 11 /09/01 3.530 35,000 CP GMAC 11/09/01 3.530 50,000 09/05/01 REDEMPTIONS CP CAMPBELL 09/05/01 3.700 40,000 1 4,111.11 3.751 CP AMER EXP 09/05/01 3.550 50,000 7 34,513.89 3.601 CP AMER EXP 09/05/01 3.550 50,000 7 34,513.89 3.601 4 09/05/01 REDEMPTIONS (continued) CID HOUSEHOLD 09/05/01 3.510 15,000 9 13,162.50 3.561 j CID CITICORP 09/05/01 3.510 50,000 9 43,875.00 3.561 CID CITICORP 09/05/01 3.510 50,000 9 43,875.00 3.561 CID HOUSEHOLD 09/05/01 3.510 50,000 9 43,875.00 3.561 NO PURCHASES 09/06/01 REDEMPTIONS CID AMER EXP 09/06/01 3.550 50,000 8 39,444.44 3.602 CID AMER EXP 09/06/01 3.550 50,000 8 39,444.44 3.602 DISC NOTES FNMA 09/06/01 6.160 38,000 349 2,269,275.56 6.642 PURCHASES CP CONAGRA 09/10/01 3.620 35,000 CID FCAR 12/10/01 3.380 50,000 CID FCAR 12/10/01 3.380 50,000 CID NCAT 12/27/01 3.380 15,000 CID NCAT 12/27/01 3.380 50,000 09/07/01 REDEMPTIONS CID AMER EXP 09/07/01 3.550 50,000 9 44,375.00 3.602 CID AMER EXP 09/07/01 3.550 50,000 9 44,375.00 3.602 CID HELLER 09/07/01 3.630 50,000 9 45,375.00 3.683 CID TEXT FIN 09/07/01 3.660 50,000 32 162,666.67 3.722 CID CONAGRA 09/07/01 3.780 27,064 35 99,460.20 3.846 DISC NOTES FNMA 09/07/01 5.090 38,000 233 1,251,857.22 5.336 DISC NOTES FNMA 09/07/01 5.090 50,000 233 1,647,180.56 5.336 PURCHASES , CD STNRD CH 3.390% 11 /01 /01 3.390 50,000 CD STNRD CH 3.390% 11/01/01 3.390 50,000 CD STNRD CH 3.390% 11/05/01 3.390 50,000 CD STNRD CH 3.390% 11/05/01 3.390 50,000 CP CONAGRA 09/10/01 3.570 50,000 CID HELLER 10/15/01 3.620 25,000 CID CAFCO 10/15/01 3.420 25,000 CID i HELLER 10/15/01 3.620 50,000 CID SALOMON 10/15/01 3.400 50,000 CID SALOMON 10/15/01 3.400 50,000 CID CAFCO 10/15/01 3.420 50,000 CID HOUSEHOLD 11/28/01 3.260 50,000 CID HOUSEHOLD 11 /28/01 3.260 50,000 ' CID GMAC 12/03/01 3.470 50,000 CID GMAC 12/03/01 3.470 50,000 5 i y q MATURITY TRANS PAR :DAYS AMOUNT EFFECTIVe, 5 . w!.?.'w ! ..�'a Mfg '\ • "DATE:YI-.E- LQ.�':� p►...N_. W.,.`_.I.' 09/10/01 PURCHASES (continued) CID GOLDMAN 12/16/01 3.250 50,000 09/10/01 REDEMPTIONS CD HYPO 3.600% 409/10/01 3.600 50,000 31 155,000.00 3.650 CD HYPO 3.600% 09/10/01 3.600 50,000 31 155,000.00 3.650 CID CONAGRA - 09/10/01 3.570 50,000 3 14,875.00 3.570 CID CONAGRA 09/10/01 3.620 35,000 4 14,077.78 3.671 CID CONAGRA 09/10/01 3.760 42,000 6 26,320.00 3.814 CID CONAGRA 09/10/01 3.650 50,000 11 55,763.89 3.704 CID CONAGRA 09/10/01 3.650 50,000 11 55,763.89 3.704 CID FCAR 09/10/01 3.520 50,000 17 83,111.11 3.574 CID FCAR 09/10/01 3.520 50,000 17 83,111.11 3.574 CID FCAR 09/10/01 3.520 50,000 17 83,111.11 3.574 CID SALOMON 09/10/01 3.610 50,000 33 165,458.33 3.672 CID SALOMON 09/10/01 3.610 50,000 33 165,458.33 3.672 CID SALOMON 09/10/01 3.610 50,000 33 165,458.33 3.672 CID SALOMON 09/10/01 3.610 50,000 33 165,458.33 3.672 CID CONAGRA 09/10/01 3.740 25,000 35 90,902.78 3.805 CID HELLER 09/10/01 3.770 50,000 39 204,208.33 3.838 CID BEAR 09/10/01 3.650 50,000 41 207,847.22 3.716 CID BEAR 09/10/01 3.650 50,000 41 207,847.22 3.716 CID BEAR 09/10/01 3.650 50,000 41 207,847.22 3.716 CID SRAC 09/10/01 3.900 50,000 41 222,083.33 3.971 CID CAMPBELL 09/10/01 3.710 25,000 89 229,298.61 3.796 DISC NOTES FNMA 09/10/01 6.160 50,000 354 3,028,666.67 6.648 PURCHASES CID HOUSEHOLD 09/11/01 3.500 50,000 CID HELLER 09/28/01 3.550 50,000 CID SRAC 10/29/01 3.580 50,000 CID AMER EXP 11/27/01 3.230 50,000 CID AMER EXP 11/27/01 3.230 50,000 CID FCAR 11/27/01 3.240 50,000 CID FCAR 11/27/01 3.240 50,000 09/11/01 REDEMPTIONS CID HOUSEHOLD 09/11/01 3.500 50,000 CID GECC 09/11/01 3.610 50,000 CID GECC 09/11/01 3.610 50,000 PURCHASES MTN W/F 4.250% 08/15/03 4.180 20,000 MTN W/F 4.250% 08/15/03 4.180 33,650 0 1 4,861.11 3.548 34 170,472.22 3.672 34 170,472.22 3.672 09/12/01 REDEMPTIONS CP SRAC 09/12/01 3.650 10,000 8 8,111.11 3.703 CP SRAC 09/12/01 3.650 50,000 8 40,555.56 3.703 CP HELLER 09/12/01 3.600 20,000 15 30,000.00 3.655 DISC NOTES FNMA 09/12/01 6.120 25,000 355 1,508,750.00 6.603 DISC NOTES FNMA .09/12/01 6.120 50,000 355 3,017,500.00 6.603 DISC NOTES FNMA 09/12/01 6.120 50,000 355 3,017,500.00 6.603 DISC NOTES FNMA 09/12/01 6.120 50,000 355 3,017,500.00 6.603 NO PURCHASES 09/13/01 REDEMPTIONS DISC NOTES FHLMC 09/13/01 6.145 5,000 356 303,836.11 6.633 DISC NOTES FHLMC 09/13/01 6.135 25,000 356 1,516,708.33 6.621 DISC NOTES FHLMC 09/13/01 6.135 50,000 356 3,033,416.67 6.621 DISC NOTES FHLMC 09/13/01 6.140 50,000 356 3,035,888.89 6.627 DISC NOTES FHLMC 09/13/01 6.145 50,000 356 3,038,361.11 6.633 DISC NOTES FHLMC 09/13/01 6.160 22,423 359 1,377,419.98 6.654 PURCHASES CP CITICORP 09/20/01 3.650 50,000 CP CITICORP 09/20/01 3.650 50,000 CP CITICORP 09/20/01 3.650 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP GECC 09/20/01 3.530 50,000 CP SRAC 09/20/01 3.650 50,000 CP AMER EXP 09/28/01 3.420 50,000 CP AMER EXP 09/28/01 3.420 50,000 CP AMER EXP 09/28/01 3.420 50,000 CP AMER EXP 09/28/01 3.420 50,000 09/14/01 REDEMPTIONS DISC NOTES FNMA 09/14/01 6.160 50,000 358 3,062,888.89 6.653 PURCHASES CP SALOMON 09/20/01 4.000 50,000 CP SALOMON 09/20/01 4.000 50,000 CP SALOMON 09/20/01 4.000 50,000 CP GOLDMAN 09/28/01 3.750 50,000 7 Lap � d R�e ANS PAR DAYS �AMOUN,T � ` EE CTIVE , ' ELD 000�IEID.�af14RNEa�YlELO 09/17/01 PURCHASES (continued) CP GOLDMAN 09/28/01 3.750 50,000 CID GOLDMAN 09/28/01 3.750 50,000 CID GOLDMAN 09/28/01 3.750 50,000 CID HELLER 09/28/01 3.600 50,000 09/17/01 REDEMPTIONS DISC NOTES FHLMC .09/17/01 4.670 50,000 203 1,316,680.56 DISC NOTES FHLMC 09/17/01 4.670 50,000 203 1,316,680.56 PURCHASES CID AMER EXP 09/27/01 3.020 50,000 CID AMER EXP 09/27/01 3.020 50,000 CID FMCC 09/27/01 3.100 50,000 CID MORG STAN 09/27/01 3.050 50,000 CID MORG STAN 09/27/01 3.050 50,000 CID MORG STAN 09/27/01 3.050 50,000 CID CONAGRA 09/28/01 3.320 23,000 CID CONAGRA 09/28/01 3.300 27,000 CID HERTZ 09/28/01 3.100 40,000 CID GOLDMAN 09/28/01 3.100 50,000 CID GOLDMAN 09/28/01 3.100 50,000 CID GOLDMAN 09/28/01 3.100 50,000 CID GOLDMAN 09/28/01 3.100 50,000 CID FCAR 10/29/01 2.970 10,000 CID FCAR 10/29/01 2.970 50,000 CID FCAR 10/29/01 2.970 50,000 CID FCAR 10/29/01 2.970 50,000 CID GECC 10/29/01 2.950 50,000 CID GECC 10/29/01 2.950 50,000 09/18/01 NO REDEMPTIONS PURCHASES CD HSBC 2.890% 11 /20/01 2.890 50,000 CD HSBC 2.890% 11/20/01 2.890 50,000 CID CITICORP 10/03/01 2.890 50,000 CID CITICORP 10/03/01 2.890 50,000 CID CITICORP 10/03/01 2.890 50,000 CID GECC 01/02/02 2.780 50,000 CID GECC 01/02/02 2.780 50,000 CID GECC 01/02/02 2.780 50,000 CID GECC 01/02/02 2.780 50,000 CID NCAT 01/02/02 2.810 50,000 CID NCAT 01/02/02 2.810 50,000 8 4.862 4.862 77r�n� 'Yr S,�wcx a�p5er" �{;.'�:1��'i`•e�'M�'4aYi�°R•aY1'y��7uk..,v ,.w ... ,� $! MATURITY TRANS PAR . 'OAYopN. M` ^OUNTg ;fF ECTNE DATE A TELO 000 a�'' s i_1tEF{� RNE tELDM 09/19/01 REDEMPTIONS FHLB 6.500% 09/19/01 6.567 50,000 363 3,264,444.44 6.605 FHLB 6.500% 09/19/01 6.567 50,000 363 3,264,444.44 6.605 PURCHASES CD MONTREAL 2.480% 12/27/01 2.480 50,000 CD MONTREAL 2.480% 12/27/01 2.480 50,000 CD U/C CALIF 2.570% 01/22/02 2.570 50,000 CD U/C CALIF 2.570% 01/22/02 2.570 50,000 CP GMAC 11/14/01 2.750 50,000 CP GMAC 11/14/01 2.750 50,000 CP AMER EXP 11/15/01 2.350 50,000 CP AMER EXP 11/15/01 2.350 50,000 CP GOLDMAN 01/22/02 2.500 50,000 CP GOLDMAN 01/22/02 2.500 50,000 DISC NOTES FNMA 12/20/01 2.170 25,000 DISC NOTES FNMA 12/20/01 2.170 50,000 DISC NOTES FNMA 12/20/01 2.170 50,000 DISC NOTES FNMA 12/20/01 2.170 50,000 DISC NOTES FNMA 12/20/01 2.170 50,000 DISC NOTES FNMA 12/20/01 2.170 50,000 DISC NOTES FNMA 12/20/01 2.170 50,000 09/20/01 REDEMPTIONS CD MONTREAL 3.510% 09/20/01 3.510 50,000 24 117,000.00 3.558 CD MONTREAL 3.510% 09/20/01 3.510 50,000 24 117,000.00 3.558 CP SALOMON 09/20/01 4.000 50,000 6 33,333.33 4.058 CP SALOMON 09/20/01 4.000 50,000 6 33,333.33 4.058 CP SALOMON 09/20/01 4.000 50,000 6 33,333.33 4.058 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7. 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP GECC 09/20/01 3.530 50,000 7 34,319.44 3.581 CP SRAC 09/20/01 3.650 50,000 7 35,486.11 3.703 CP CITICORP 09/20/01 3.650 50,000 7 35,486.11 3.703 CP CITICORP 09/20/01 3.650 50,000 7 35,486.11 3.703 CP CITICORP 09/20/01 3.650 50,000 7 35,486.11 3.703 PURCHASES DISC NOTES FFCB 12/07/01 2.180 31,289 DISC NOTES FFCB 12/13/01 2.050 25,000 DISC NOTES FFCB 12/13/01 2.050 50,000 0 _ .,R. .+y1...2 Att�.'.::t J,-,�;.�s .� :w.+ 'r...:.•p .!�i�:?• v ' a3y ,�: ,�r ��� v �:;,. rl �., 'a'k��w#,.+n.Yy, �. 5.� D�IfOEYrt`1lVl►ES�'C`AEN7'yACCtaUNT "q'S?r+,s.tE.;, ,� ..l"oz.,>,as3 .::• vt �,:. ;aw r v`r'y ;�,,•'vi h a.i'G '"`Y �xx>w �, n s y,�xy,�%�.h �xs•$o l _ s 14a"ut a a, �/ w,F,.FTA1'^, xAN.i.�OxU�: rNT iC�. TIV>"MATURITY D YIELD 0HELD ,-A 00 a�m�Cfw•r..K3Dsrera?3fi+s Gu�zaa5ta xa6w.. ............_r• .....�'"; , x..._..._ _ .v:. »?t. . ,..a <.s.+d. 09/21/01 PURCHASES (continued) DISC NOTES FFCB 12/13/01 2.050 50,000 DISC NOTES FHLB 12/12/01 2.050 45,000 DISC NOTES FHLB 12/12/01 2.050 50,000 DISC NOTES FHLB 12/20/01 2.160 25,364 DISC NOTES FHLB 0S/25/02 2.300 30,000 DISC NOTES FHLB 03/25/02 2.300 50,000 DISC NOTES FHLMC 10/30/01 2.070 29,000 DISC NOTES FHLMC 12/31/01 2.250 16,028 DISC NOTES FHLMC.: 12/31/01 2.250 50,000 DISC NOTES FNMA . 12/20/01 2.190 40,000 DISC NOTES FNMA 02/08/02 2.150 50,000 DISC NOTES FNMA 02/08/02 2.150 50,000 DISC NOTES FNMA 03/21/02 2.300 4,000 DISC NOTES FNMA 03/21/02 2.300 50,000 DISC NOTES FNMA 03/21/02 2.300 50,000 DISC NOTES FNMA 03/21/02 2.300 50,000 DISC NOTES FNMA 03/21/02 2.300 50,000 DISC NOTES FNMA 03/21/02 2.300 50,000 DISC NOTES FNMA 06/21/02 2.300 50,000 DISC NOTES FNMA 06/21/02 2.300 50,000 09/21/01 REDEMPTIONS DISC NOTES FNMA 09/21/01 4.000 50,000 150 833,333.33 4.124 DISC NOTES FNMA 09/21/01 4.000 50,000 150 833,333.33 4.124 DISC NOTES FNMA 09/21/01 6.150 50,000 360 3,075,000.00 6.644 DISC NOTES FNMA 09/21/01 6.150 50,000 360 3,075,000.00 6.644 PURCHASES DISC NOTES FHLB 11/30/01 2.240 48,800 DISC NOTES FHLB 11/30/01 2.240 50,000 DISC NOTES FHLB 12/07/01 2.270 27,549 DISC NOTES FHLB 12/21/01 2.260 30,000 DISC NOTES FHLB 12/21/01 2.260 50,000 DISC NOTES FHLB 12/24/01 2.250 50,000 DISC NOTES FHLB 12/24/01 2.250 50,000 DISC NOTES FHLB 12/24/01 2.250 50,000 DISC NOTES FHLB 12/31/01 2.250 10,000 DISC NOTES FHLB 12/31/01 2.250 50,000 DISC NOTES FHLMC 11/30/01 2.250 50,000 DISC NOTES FHLMC 11/30/01 2.250 50,000 DISC NOTES FHLMC 12/07/01 2.270 20,000 DISC NOTES FHLMC 12/13/01 2.280 10,000 DISC NOTES FHLMC 12/13/01 2.280 50,000 DISC NOTES FHLMC 12/28/01 2.280 25,000 DISC NOTES FNMA 12/14/01 2.270 50,000 DISC NOTES FNMA 12/20/01 2.260 946 10 0 !�« ,MATURITY '.TRANS PAR:, � 'DAYS ' AMOUNT �FEECTIVE• DATE .YIELD' 00...«� W� RNED .� Y,. "XI�L_._ , 09/24/01 PURCHASES (continued) DISC NOTES FNMA 12/20/01 2.260 60,000 j DISC NOTES FNMA 03/21/02 2.300 13,861 1 DISC NOTES FNMA 03/21/02 2.290 24,000 I DISC NOTES FNMA 03/21/02 2.300 • 50,000 DISC NOTES FNMA 06/17102 2.300 50,000 j DISC NOTES FNMA 06/17/02 2.300 50,000 09/24/01 REDEMPTIONS DISC NOTES FHLMC 09/24/01 4.900 50,000 237 1,612,916.67 5.133 DISC NOTES FHLMC 09/24/01 4.900 50,000 237 1,612,916.67 5.133 DISC NOTES FHLMC 09/24/01 4.950 50,000 248 1,705,000.00 5.195 DISC NOTES FHLMC 09/24/01 4.950 50,000 248 1,705,000.00 5.195 PURCHASES CID CITICORP 09/26/01 3.000 15,000 CID CITICORP 09/26/01 3.000 50,000 CID CITICORP 09/26/01 3.000 50,000 CID CITICORP 09/26/01 3.000 50,000 CID CITICORP 09/26/01 3.000 50,000 CID COUNTRY 09/28/01 2.980 16,479 CID COUNTRY 09/28/01 2.980 50,000 DISC NOTES FHLB 03/22/02 2.360 40,000 DISC NOTES FHLB 03/22/02 2.360 50,000 DISC NOTES FHLB 03/22/02 2.360 50,000 DISC NOTES FHLB 03/22/02 2.360 50,000 DISC NOTES FHLB 03/22/02 2.360 50,000 DISC NOTES FHLB 03/22/02 2.360 50,000 DISC NOTES FHLMC 11/20/01 2.480 50,000 DISC NOTES FHLMC 11/20/01 2.480 50,000 DISC NOTES FHLMC 02/28/02 2.400 24,000 DISC NOTES FHLMC 02/28/02 2.400 27,635 DISC NOTES FHLMC 02/28/02 2.400 50,000 DISC NOTES FHLMC 03/22/02 2.360 17,641 DISC NOTES FNMA 12/06/01 2.450 50,000 DISC NOTES FNMA 12/06/01 2.450 50,000 DISC NOTES FNMA 03/14/02 2.365 22,739 DISC NOTES FNMA 03/21/02 2.360 50,000 DISC NOTES FNMA 03/21/02 2.360 50,000 DISC NOTES FNMA 03/21/02 2.360 50,000 DISC NOTES FNMA 03/21/02 2.360 50,000 DISC NOTES FNMA 06/21/02 2.360 501000 DISC NOTES FNMA 06/28/02 2.360 50,000 09/25/01 REDEMPTIONS DISC NOTES FNMA 09/25/01 5.020 50,000 11 263 1,833,694.44 5.283 ��'. � `'?F' Y?i,..T,6t', `�' ::rSf v. .v l':"Xi%.c .+. ;its' •� ..�..k 3 . id=K::% .. r:: ?^ �, ;�.a sae. a^�, any ♦i ^73'<"v ♦ � � � �.��' .�}; ,�u?. "Qf�> {�.+�..r .,a � • . ^�+ `� .. �. .. .. ✓ � �.' ;�k s � e � � �'a8!, bias+ ,�' 'kvil��' .:�w �Ly* �3M.♦+^ „� `� c �'(( .'t`� 0.+,:R^e.� ;,Xti:y i �Xr4-.s ;y ax,�a.L 1r*.1r `srX.,,r*„y�.�4'♦le, i f' .�. � +� ..:� ;^, 3' ` �..� � t;�F� .s' '� ♦C is �a: 's. ^� ♦� �♦♦� ' a ♦ �. jv.'. fv , .it � hiY+y ✓ yy s .t'*F � --. K'S a �.y. � •. .K �b'.J,^ i ast"d'r8 wrzaa.3lia�l �. r e4,.: �xfi `^ d-: .; , < aWL T V.E% �. f., ,nw'w9,N'w�ra 1::. n, ,. VIVIATURITY .TRANS PAR.:"DAYS" .,�: , M+Q NT L. EFI,EC, I AT �. „y'"iYP nr� DESCRIPTION DATE :YIELD L01 HE D a 'EARNS° b3YlEl , 09/25/01 REDEMPTIONS (continued) DISC NOTES FNMA 09/25/01 5.020 50,000 263 1,833,694.44 5.283 DISC NOTES FNMA 09/25/01 5.020 50,000 263 1,833,694.44 5.283 DISC NOTES FNMA -09/25/01 5.020 50,000 260 1,762,222.22 5.128 PURCHASES CD RABO 2.4300/6* 01 /29/02 2.420 50,000 CD RABO 2.430% 01/29/02 2.420 50,000 CD HELABA 2.400% 02/08/02 2.400 50,000 CD HELABA 2.400% 02/08/02 2.400 50,000 CD SOC GEN 2.440% 02/08/02 2.440 50,000 CID COUNTRY 09/28/01 3.200 49,243 CID CITICORP 09/28/01 3.020 50,000 CID CITICORP 09/28/01 3.020 50,000 09/26/01 REDEMPTIONS BN BANC ONE 4.130% 09/26/01 4.130 50,000 146 837,472.22 4.187 BN BANC ONE 4.130% 09/26/01 4.130 50,000 146 837,472.22 4.187 BN BANC ONE 4.130% 09/26/01 4.130 50,000 146 837,472.22 4.187 BN BANC ONE • 4.130% 09/26/01 4.130 50,000 146 837,472.22 4.187 CD DEUTSCHE 3.700% 09/26/01 3.700 50,000 82 421,388.89 3.751 CD DEUTSCHE 3.700% 09/26/01 3.700 50,000 82 421,388.89 3.751 CD HYPO 3.560% 09/26/01 3.550 50,000 92 453,622.60 3.599 CD HYPO 3.560% 09/26/01 3.550 50,000 92 453,622.60 3.599 CD MONTREAL 3.570% 09/26/01 3.570 50,000 92 456,166.67 3.619 CD MONTREAL 3.570% 09/26/01 3.570 50,000 92 456,166.67 3.619 CD TORONTO 3.565% 09/26/01 3.560 50,000 92 454,894.65 3.609 CD TORONTO 3.565% 09/26/01 3.560 50,000 92 454,894.65 3.609 CD UBS 3.570% 09/26/01 3.560 50,000 92 454,900.41 3.609 CD UBS 3.570% 09/26/01 3.560 50,000 92 454,900.41 3.609 CD SVENSKA 3.630% 09/26/01 3.630 50,000 100 466,666.67 3.406 CD SVENSKA 3.630% 09/26/01 3.630 50,000 100 466,666.67 3.406 CD SVENSKA 3.630% 09/26/01 3.630 50,000 100 466,666.67 3.406 CD TORONTO 3.635% 09/26/01 3.630 50,000 100 504,173.60 3.680 CD TORONTO 3.635% 09/26/01 3.630 50,000 100 504,173.60 3.680 CD TORONTO 3.635% 09/26/01 3.630 50,000 100 504,173.60 3.680 CD TORONTO 3.635% 09/26/01 3.630 50,000 100 504,173.60 3.680 CD SOC GEN 3.800% 09/26/01 3.800 50,000 113 596,388.89 3.852 CD HSBC 3.820% 09/26/01 3.820 50,000 117 620;750.00 3.873 CD HSBC 3.820% 09/26/01 3.820 50,000 117 620,750.00 3.873 CD US BANK 3.820% 09/26/01 3.820 50,000 117 620,750.00 3.873 CD US BANK 3.820% 09/26/01 3.820 50,000 117 620,750.00 3.873 CD U/B CALIF 4.150% 09/26/01 4.150 30,000 146 504,916.67 4.207 CD U/B CALIF 4.150% 09/26/01 4.150 50,000 146 841,527.78 4.207 CD U/B CALIF 4.200% 09/26/01 4.200 50,000 155 904,166.67 4.258 CD U/B CALIF 4.200% 09/26/01 4.200 50,000 155 904,166.67 4.258 CD U/B CALIF 4.200% 09/26/01 4.200 50,000 155 904,166.67 4.258 12 �a: E!1 .E;prya:NE'..?uer kA.�.r araw -.1�1A::�Y.A5R�_s:ts�%£,:I.j;V:.1s►'c g fS�i>yiy„�pJ ryµ, tFZ .�r.is •1 a `.�at� .ka,� r� Y 3 '. i v .i " ^#'��� '��.'•+ 1�����3��y''%� j{ _' S �1t• �j h .�`' f f r `� M .A ,n t x ' zit ;s k h.,��k�r� aid `MATURITY TRANS PAR P'C►AYSr A[UO FFE���{/� j :£f...... 'a£ v ,. ,'h c S� r<y� �^T �;� �..:.`. aYY4 ,flESCRIPT10Nµ ` ATE YIELD 0�001 �ELp>`FAR�NE �t.�,/IELD 09/26/01 REDEMPTIONS (continued) CD U/B CALIF 4.200% 09/26/01 4.200 50,000 155 904,166.67 4.258 CD DEUTSCHE 4.600% 09/26/01 4.600 50,000 163 1,041,388.89 4.663 CD DEUTSCHE 4.600% 09/26/01 4.600 50,000 163 1,041,388.89 4.663 CP CITICORP 09/26/01 3.000 15,000 2 2,500.00 3.042 CP CITICORP 09/26/01 3.000 50,000 2 8,333.33 3.042 CP CITICORP 09/26/01 3.000 50,000 2 8,333.33 3.042 CP CITICORP 09/26/01 3.000 50,000 2 8,333.33 3.042 CP CITICORP 09/26/01 3.000 50,000 2 8,333.33 3.042 CP DFC 09/26/01 3.500 7,401 34 24,464.43 3.560 CP DFC 09/26/01 3.500 50,000 34 165,277.78 3.560 CP FMCC 09/26/01 3.530 27,000 40 105,900.00 3.593 CP FCAR 09/26/01 3.540 48,000 40 188,800.00 3.603' CP FCAR 09/26/01 3.540 50,000 40 196,666.67 3.603 CP SALOMON 09/26/01 3.500 50,000 40 194,444.44 3.562 CP SALOMON 09/26/01 3.500 50,000 40 194,444.44 3.562 CP SALOMON 09/26/01 3.500 50,000 40 194.444.44 3.562 CP SALOMON 09/26/01 3.500 50,000 40 194,444.44 3.562 CP HELLER 09/26/01 3.680 50,000 55 281,111.11 3.752 CP AMER EXP 09/26/01 3.660 50,000 82 416,833.33 3.742 CIS AMER EXP 09/26/01 3.660 50,000 82 416,833.33 3.742 CP AMER EXP 09/26/01 3.660 50,000 82 416,833.33 3.742 CP AMER EXP 09/26/01 3.660 50,000 82 416,833.33 3.742 CP GECC 09/26/01 3.660 50,000 82 416,833.33 3.742 CP GECC 09/26/01 3.660 50,000 82 416,833.33 3.742 CP GECC 09/26/01 3.660 50,000 82 416,833.33 3.742 CP GECC 09/26/01 3.660 50,000 82 416,833.33 3.742 CP GECC 09/26/01 3.660 50,000 82 416,833.33 3.742 CP GECC 09/26/01 3.660 50,000 82 416,833.33 3.742 CP SRAC 09/26/01 4.100 40,000 117 533,000.00 4.213 DISC NOTES FHLMC 09/26/01 6.100 50,000 309 2,617,916.67 6.526 DISC NOTES FHLMC 09/26/01 6.100 50,000 309 2,617,916.67 6.526 PURCHASES DISC NOTES FHLB 03/27/02 2.350 25,000 DISC NOTES FHLB 03/27/02 2.350 50,000 DISC NOTES FHLB 03/27/02 2.350 50,000 DISC NOTES FHLB 03/27/02 2.350 50,000 DISC NOTES FHLB 03/27/02 2.350 50,000 DISC NOTES FHLMC 12/27/01 2.420 50,000 DISC NOTES FHLMC 03/22/02 2.360 50,000 DISC NOTES FHLMC 03/28/02 2.350 50,000 DISC NOTES FHLMC 03/28/02 2.360 50,000 DISC NOTES FHLMC 06/26/02 2.320 50,000 DISC NOTES FHLMC 06/26/02 2.320 50,000 DISC NOTES FNMA 02/28/02 2.360 123 DISC NOTES FNMA 03/14/02 2.350 30,000 DISC NOTES FNMA 02/28/02 2.360 50,000 13 Al MATURITY TRANS PAR `DAYS Y ;AMOUNT: a -EFFECTIVE,, DATE YIELD LI MELD , .. . 09/27/01 PURCHASES (continued) DISC NOTES FNMA 06/28/02 2.310 $0,000 09/27/01 REDEMPTIONS CP AMER EXP A9/27/01 3.020 50,000 10 41,944.44 3.064 CP AMER EXP 09/27/01 3.020 50,000 10 41,944.44 3.064 CP FMCC _ 09/27/01 3.100 50,000 10 43,055.56 3.145 CP MORG STAN 09/27/01 3.050 50,000 10 42,361.11 3.094 CP MORG STAN 09/27/01 3.050 50,000 10 42,361.11 3.094 CP MORG STAN 09/27/01 3.050 50,000 10 42,361.11 3.094 CP HELLER 09/27/01 3.680 50,000 44 224,888.89 3.747 PURCHASES CD CIBC 2.490% 12/27/01 2.490 20,000 CD BAYER LNDS 2.420% 12/27/01 2.420 50,000 CD CIBC 2.490% 12/27/01 2.490 50,000 CD CIBC 2.490% 12/27/01 2.490 50,000 CD HELABA 2.420% 12/27/01 2.420 50,000 CD HELABA 2.420% 12/27/01 2.420 50,000 CD HELABA 2.410% 01 /29/02 2.410 50,000 CD HELABA 2.410% 01/29/02 2.410 50,000 DISC NOTES FHLB 03/27/02 2.325 45,445 DISC NOTES FHLB 03/27/02 2.325 50,000 DISC NOTES FNMA 12/27/01 2.415 41,730 DISC NOTES FNMA 12/27/01 2.415 50,000 DISC NOTES FNMA 12/27/01 2.415 50,000 DISC NOTES FNMA 12/27/01 2.415 50,000 DISC NOTES FNMA 12/27/01 2.415 50,000 TREAS BILLS 03/28/02 2.248 50,000 TREAS BILLS 03/28/02 2.248 50,000 09/28/01 REDEMPTIONS CD NOVA SCOT 3.490% 09/28/01 3.490 50,000 36 174,500.00 3.538 CD NOVA SCOT 3.490% 09/28/01 3.490 50,000 36 174,500.00 3.538 CD TORONTO 3.635% 09/28/01 3.635 50,000 101 509,909.72 3.685 CD TORONTO 3.635% 09/28/01 3.635 50,000 101 509,909.72 3.685 CD HSBC 3.820% 09/28/01 3.820 50,000 119 631,361.11 3.873 CD HSBC 3.820% 09/28/01 3.820 50,000 119 631,361.11 3.873 CP COUNTRY 09/28/01 3.200 49,243 3 13,131.47 3.245 CP CITICORP 09/28/01 3.020 50,000 3 12,583.33 3.062 CP CITICORP 09/28/01 3.020 50,000 3 12,583.33 3.062 CP COUNTRY 09/28/01 2.980 16,479 4 5,456.38 3.022 CP COUNTRY 09/28/01 2.980 50,000 4 16,555.56 3.022 CP CONAGRA 09/28/01 3.320 23,000 11 23,332.22 3.369 CP CONAGRA 09/28/01 3.300 27,000 11 27,225.00 3.349 CP HERTZ 09/28/01 3.100 40,000 11 37,888.89 3.146 14 09/28/01 REDEMPTIONS (continued) CID GOLDMAN 09/28/01 3.100 50,000 11 47,361.11 3.146 CID GOLDMAN 09/28/01 3.100 50,000 11 47,361.11 3.146 CID GOLDMAN 09/28/01 3.100 50,000 11 47,361.11 3.146 CID GOLDMAN 09/28/01 3.100 50,000 11 47,361.11 3.146 CID GOLDMAN 09/2&01 3.750 50,000 14 72,916.67 3.807 CID GOLDMAN 09/28/01 3.750 50,000 14 72,916.67 3.807 CID GOLDMAN 09/28/01 3.750 50,000 14 72,916.67 3.807 CID GOLDMAN 09/28/01 3.750 50,000 14 72,916.67 3.807 CID HELLER 09/28/01 3.600 50,000 14 70,000.00 3.655 CP AMER EXP" 09/28/01 3.420 50,000 15 71,250.00 3.472 CID AMER EXP 09/28/01 3.420 50,000 15 71,250.00 3.472 CID AMER EXP 09/28/01 3.420 50,000 15 71,250.00 3.472, CID AMER EXP 09/28/01 3.420 50,000 15 71,250.00 3.472 CID HELLER 09/28/01 3.550 50,000 18 88,750.00 3.605 DISC NOTES FHLMC 09/28/01 4.890 50,000 263 1,786,208.33 5.141 DISC NOTES FHLMC 09/28/01 4.890 50,000 263 1,786,208.33 5.141 DISC NOTES FHLMC 09/28/01 6.070 50,000 303 2,554,458.33 6.485 DISC NOTES FHLMC 09/28/01 6.070 50,000 303 2,554,458.33 6.485 PURCHASES CD HYPO 2.530% 11/02/01 2.530 50,000 CD HYPO 2.530% 11/02/01 2.530 50,000 CD ANZ 2.470% 12/27/01 2.460 50,000 CD ANZ 2.470% 12/27/01 2.460 50,000 CID AMER EXP 10/01/01 3.350 50,000 CID AMER EXP 10/01/01 3.350 50,000 CID HELLER 10/09/01 3.500 50,000 CID HELLER 10/12/01 3.500 50,000 CID GOLDMAN 01/29/02 2.480 50,000 CID GOLDMAN 01 /29/02 2.480 50,000 CID GOLDMAN 02/13/02 2.420 10,000 CID GOLDMAN 02/13/02 2.420 50,000 CID GOLDMAN 02/13/02 2.420 50,000 DISC NOTES FNMA 12/27/01 2.410 50,000 DISC NOTES FNMA 12/27/01 2.410 50,000 TREAS BILLS 03/28/02 2.265 50,000 TREAS BILLS. 03/28/02 2.265 50,000 TREAS BILLS 03/28/02 2.265 50,000 TREAS BILLS 03/28/02 2.265 50,000 09/30/01 REDEMPTIONS MTN ASSOC 7.875% 09/30/01 5.750 15,000 934 2,269,368.75 6.943 MTN ASSOC 7.875% 09/30/01 5.770 11,975 937 1,823,762.56 6.936 NO PURCHASES 15 a/ The abbreviations indicate the type. of security purchased or sold; Le., (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 (EXIM), 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 (FFC), Corporate Securities (CB), US Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA), Medium Term Notes (MTN), Real Estate Mortgage Investment Conduit (REMIC). b/ Purchase or sold yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securities purchased, sold or redeemed. e/ 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. it Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 16 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ALHAMBRA Grand National Bank 05/31/01 3.680 3,000,000.00 11/27/01 Grand National Bank 06/25/01 3.500 1,000,000.00 01/07/02 Grand National Bank 07/13/01 3.560 2,000,000.00 01/09/02 Grand National Bank 05/17/01 - 3.700 3,000,000.00 05/17/02 Grand National Bank 07/13/01 3.520 3,095,000.00 07/12/02 Omni Bank 07/27/01 3.590 1,300,000.00 10/25/01 Omni Bank 08/24/01 3.440 2,000,000.00 11/21/01 Omni Bank 08/31 /01 3.420 3,000,000.00 11 /30/01 Omni Bank 08/31/01 3.340 3,000,000.00 02/27/02 ARROYO GRANDE Mid -State Bank 04/16/01 4.130 5,000,000.00 10/15/01 Mid -State Bank 05/24/01 3.750 5,000,000.00 11/20/01 Mid -State Bank 06/21/01 3.510 5,000,000.00 12/18/01 Mid -State Bank 07/13/01 3.560 5,000,000.00 01/16/02 Mid -State Bank, 08/15/01 3.400 5,000,000.00 02/14/02 Mid -State Bank 09/14/01 3.230 5,000,000.00 03/13/02 BEVERLY HILLS City National Bank 06/05/01 3.650 25,000,000.00 12/03/01 City National Bank 08/20/01 3.380 25,000,000.00 02/15/02 City National Bank 09/05/01 3.330 40,000,000.00 03/07/02 City National Bank 04/16/01 4.170 25,000,000.00 04/16/02 BREA Jackson Federal Bank 07/26/01 3.560 10,000,000.00 01/22/02 CAMARILLO Camarillo Community Bank 08/01/01 3.560 2,000,000.00 10/30/01 Camarillo Community Bank 08/20/01 3.400 3,000,000.00 11/19/01 CHICO North State National Bank 03/02/01 4.600 1,500,000.00 11/28/01 North State National Bank 09/07/01 3.400 1,000,000.00 12/07/01 North State National Bank 04/06/01 4.000 5,000,000.00 01/25/02 Tri Counties Bank 09/06/01 3.430 10,000,000.00 12/05/01 Tri Counties Bank 09/11 /01 3.300 10,000,000.00 12/10/01 17 a/ 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 (EXIM), 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 (FFC), Corporate Securities (CB), US Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA), Medium Term Notes (MTN), Real Estate Mortgage Investment Conduit (REMIC). b/ Purchase or sold yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securities purchased, sold or redeemed. e/ 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. it Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 16 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ALHAMBRA Grand National Bank 05/31/01 3.680 3,000,000.00 11/27/01 Grand National Bank 06/25/011 3.500 1,000,000.00 01/07/02 Grand National Bank 07/13/01 3.560 2,000,000.00 01 /09/02 Grand National Bank 05/17/01 3.700 3,000,000.00 05/17/02 Grand National Bank 07/13/01 3.520 3,095,000.00 07/12/02 Omni Bank 07/27/01 3.590 1,300,000.00 10/25/01 Omni Bank 08/24/01 3.440 2,000,000.00 11/21/01 Omni Bank 08/31/01 3.420 3,000,000.00 11/30/01 Omni Bank 08/31/01 3.340 3,000,000.00 02/27/02 ARROYO GRANDE Mid -State Bank 04/16/01 4.130 5,000,000.00 10/15/01 Mid -State Bank 05/24/01 3.750 5,000,000.00 11/20/01 Mid -State Bank 06/21/01 3.510 5,000,000.00 12/18/01 Mid -State Bank 07/13/01 3.560 5,000,000.00 01/16/02 Mid -State Bank, 08/15/01 3.400 5,000,000.00 02/14/02 Mid -State Bank 09/14/01 3.230 5,000,000.00 03/13/02 BEVERLY HILLS City National Bank 06/05/01 3.650 25,000,000.00 12/03/01 City National Bank 08/20/01 3.380 25,000,000.00 02/15/02 City National Bank 09/05/01 3.330 40,000,000.00 03/07/02 City National Bank 04/16/01 4.170 25,000,000.00 04/16/02 BREA Jackson Federal Bank s 07/26/01 3.560 10,000,000.00 01/22/02 CAMARILLO . Camarillo Community Bank 08/01/01 3.560 2,000,000.00 10/30/01 Camarillo Community Bank 08/20/01 3.400 3,000,000.00 11/19/01 CHICO North State National Bank 03/02/01 4.600 1,500,000.00 11/28/01 North State National Bank 09/07/01 3.400 1,000,000.00 12/07/01 North State National Bank 04/06/01 4.000 5,000,000.00 01/25/02 Tri Counties Bank 09/06/01 3.430 10,000,000.00 12/05/01 Tri Counties Bank 09/11/01 3.300 10,000,000.00 12/10/01 17 TIME DEPOSITS DEPOSIT PAR NAME DATE YIELD AMOUNT ($) CHICO (continued) Tri Counties Bank 09/18/01 4 CHULA VISTA North Island Federal Credit Union 05/29/01 CITY OF INDUSTRY EverTrust Bank 06/15/01 EverTrust Bank 07/27/01 EverTrust Bank 07/18/01 CONCORD CA State 9 Credit Union 08/21/01 DU_ Western State Bank 04/02/01 Western State Bank 06/06/01 Western State Bank 08/14/01 Western State Bank 08/27/01 DUBLIN Operating Engineers FCU 07/13/01 Operating Engineers FCU 09/12/01 Operating Engineers FCU 08/08/01 EL CENTRO Valley Independent Bank 08/02/01 Valley Independent Bank 08/14/01 EL SEGUNDO Hawthorne Savings FSB 06/28/01 Xerox Federal Credit Union 08/13/01 Xerox Federal Credit Union 09/04/01 18 MATURITY DATE 2.700 10,000,000.00 12/17/01 3.770 20,000,000.00 11/27/01 3.560 6,000,000.00 12/12/01 3.540 3,000,000.00 01/25/02 3.600 3,000,000.00 01/25/02 3.440 4.120 3.680 3.420 4.430 10,000,000.00 11 /19/01 2,000,000.00 10/01 /01 2, 000, 000.00 12/03/01 1,000,000.00 02/25/02 2,000,000.00 02/25/02 3.590 5,000,000.00 10/11 /01 3.280 10,000,000.00 12/11 /01 3.490 5,'000,000.00 02/04/02 3.580 20,000,000.00 10/31/01 3.420 7,500,000.00 02/14/02 3.520 60,000,000.00 01/04/02 3.470 20,000,000.00 11/13/01 3.350 7,000,000.00 03/04/02 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) D_ FRESNO United Security Bank 04/09/01 4.020 United Security Bank 04/05/01 4.140 United Security Bank 05/14/01 3.780 United Security Bank _ 07/31/01 3.510 FULLERTON Fullerton Community Bank 05/21/01 Fullerton Community Bank 07/18/01 GLENDALE Verdugo Banking Company 07/05/01 GRANADA HILLS Bank of Granada Hills 09/18/01 HUNTINGTON BEACH First Bank and Trust 04/30/01 First Bank and Trust 08/27/01 First Bank and Trust 09/11/01 INGLEWOOD Imperial Bank 07/12/01 Imperial Bank 08/01/01 Imperial Bank 09/05/01 LAKEPORT Lakeport Community Bank 06/19/01 LA JOLLA Silvergate Bank 09/14/01 Silvergate Bank 08/08/01 LODI Farmers & Merchant Bk Cen CA 07/05/01 W 3.790 3.640 3.660 2.740 4.010 3.400 3.240 1,000,000.00 10/05/01 4, 000, 000.00 10/05/01 10, 000, 000.00 11 /15/01 15,000,000.00 02/06/02 9, 000, 000.00 11 /19/01 8, 000, 000.00 01 /25/02 5,000,000.00 01/08/02 2,000,000.00 03/18/02 1,000,000.00 10/29/01 2,000,000.00 02/26/02 12,000,000.00 03/11/02 3.600 71,0000000.00 10/09/01 3.560 183, 000; 000.00 10/30/01 3.400 63,000,000.00 12/04/01 3.560 2,000,000.00 12/17/01 3.310 3, 500, 000.00 12/13/01 3.520 5,000,000.00 02/04/02 3.650 10,000,000.00 01/11/02 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE LOS ANGELES Broadway Federal Bank 04/09/01 4.030 2,500,000.00 10/12/01 Broadway Federal Bank 07/09/01 3.610 2,500,000.00 01/08/02 Broadway Federal Bank 06/13/01 3.580 3,000,000.00 03/11/02 California Center Bank _ 07/03/01 3.680 10,000,000.00 10/02/01 California Chohung Bank 05/21/01 3.760 4,000,000.00 11/19/01 California Chohung Bank 07/03/01 3.650 1,500,000.00 01/07/02 California Chohung Bank 07/18/01 3.630 1,000,000.00 01/14/02 Cathay Bank 04/13/01 4.080 19,000,000.00 10/10/01 Cathay Bank 09/04/01 3.340 30,000,000.00 03/04/02 Cathay Bank 09/26/01 2.430 19,000,000.00 03/25/02 Cedars Bank 07/12/01 3.620 2,500,000.00 10/10/01 Cedars Bank 09/06/01 3.460 2,500,000.00 03/06/02 Eastern International Bank 05/07/01 3.800 900,000.00 11/05/01 Eastern International Bank 06/12/01 3.650 1,000,000.00 12/10/01 General Bank 06/28/01 3.630 25,000,000.00 12/10/01 General Bank 07/20/01 3.550 15,000,000.00 01/18%02 General Bank 07/30/01 3.540 20,000,000.00 01/28/02 General Bank 08/07/01 3.490 15,000,000.00 02/08/02 General Bank 05/30/01 3.710 10,000,000.00 02/20/02 General Bank 05/22/01 3.800 20,000,000.00 02/20/02 General Bank 08/13/01 3.400 15,000,000.00 03/07/02 General Bank 06/14/01 3.570 20,000,000.00 03/18/02 Hanmi Bank 04/16/01 4.060 25,000,000.00 10/15/01 Hanmi Bank 05/31/01 .3.680 25,000,000.00 11/27/01 Hanmi Bank 09/26/01 2.400 25,000,000.00 12/20/01 Manufacturers Bank 08/03/01 3.560 10,000,000.00 11/01/01 Manufacturers Bank 09/10/01 3.330 30,000,000.00 12/11/01 Manufacturers Bank 09/18/01 2.700 20,000,000.00 ' 12/21/01 Marathon National Bank 08/06/01 3.510 2,000,000.00 02/04/02 Mellon First Business Bank 06/18/01 3.560 25,000,000.00 01/04/02 Mellon First Business Bank 07/18/01 3.610 25,000,000.00 02/01/02 Mellon First Business Bank 09/24/01 2.360 25,000,000.00 03/20/02 Mercantile National Bank 08/13/01 3.410 2,000,000.00 02/08/02 Nara Bank, NA 09/21/01 2.270 5,000,000.00 12/19/01 Pacific Union Bank 04/04/01 4.110 20,000,000.00 10/01/01 Pacific Union Bank 09/06/01 3.460 20,000,000.00 12/05/01 Preferred Bank 09/17/01 3.000 9,000,000.00 12/18/01 Preferred Bank 08/13/01 3.390 4,000,000.00 02/08/02 Preferred Bank 08/27/01 3.400 7,000,000.00 02/26/02 Preferred Bank 06/11/01 3.600 9,000,000.00 03/08/02 Preferred Bank 07/16/01 3.550 6,000,000.00 07/16/02 Sae Han Bank 04/16/01 4.130 3,000,000.00 10/15/01 20 NAME LOS ANGELES (continued State Bank of India (Calif) State Bank of India (Calif) State Bank of India (Calif) Western Federal Credit Union Wilshire State Bank Wilshire State Bank Wilshire State Bank MANTECA Delta National Bank MERCED County Bank .County Bank County Bank MONTEREY PARK Trust Bank FSB Trust Bank FSB NORTH HIGHLANDS Safe Credit Union Safe Credit Union OAKDALE Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank �G;114W,ML Metropolitian Bank ONTARIO Citizens Business Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 08/27/01 3.380 06/12/01 3.600 07/18/01 _ 3.510 04/24/00 4.170 05/17/01 3.700 08/31 /01 3.340 07/13/01 3.540 08/21 /01 3.420 04/20/01 3.930 03/09/01 4.500 07/20/01 3.650 04/02/01 4.120 07/02/01 3.660 07/16/01 3.600 08/01 /01 3.490 07/09/01 3.640 09/05/01 3.380 03/23/01 4.140 06/05/01 3.640 09/24/01 2.390 03/08/01 4.630 21 2,000,000.00 02/25/02 5,500,000.00 04/02/02 2,000,000.00 07/18/02 25, 000, 000.00 10/24/01 2, 000, 000.00 11 /15/01 4,000,000.00 02/27/02 4,000,000.00 07/12/02 3, 000, 000.00 11 /19/01 5,000,000.00 10/17/01 10, 000, 000.00 12/07/01 5,000,000.00 01/16/02 4,000,000.00 10/01 /01 2,000,000.00 01/02/02 5,000,000.00 01/14/02 20,000,000.00 02/06/02 2, 500, 000.00 10/10/01 500,000.00 03/22/02 1,500,000.00 03/22/02 1,500,000.00 06/05/02 1,000,000.00 03/25/02 25, 000, 000.00 12/03/01 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE ONTARIO (continued) Citizens Business Bank 03/26/04 4.150 30,000,000.00 03/26/02 Citizens Business Bank 04/05/01 4.070 25,000,000.00 04/05/02 Citizens Business Bank 05/07/D1 3.800 10,000,000.00 05/07/02 Citizens Business Bank 08/22/01 3.480 30,000,000.00 08/22/02 PALO ALTO Bank of Petaluma 06/19/01 3.570 12,000,000.00 12/17/01 Bank of Petaluma 08/06/01 3.520 1,000,000.00 02/25/02 Bank of Petaluma 06/05/01 3.660 2,500,000.00 02/25/02 Bank of Santa Clara 06/04/01 3.630 20,000,000.00 02/25/02 Bay Area Bank 05/02/01 3.920 5,000,000.00 10/30/01 Bay Area Bank 07/25/01 3.570 5,000,000.00 01/14/02 Bay Bank of Commerce 05/02/01 3.940 5,000,000.00 10/30/01 Coast Commercial Bank 07/16/01 3.620 5,000,000.00 01/14/02 Coast Commercial Bank 06/11/01 3.620 20,000,000.00 02/25/02 Cupertino National Bank 05/02/01 3.920 35,000,000.00 10/30/01 Cupertino National Bank 06/19/01 3.550 10,000,000.00 12/17/01 Cupertino National Bank 07/24/01 3.570 10,000,000.00 01/14/02 Cupertino National Bank 06/01 /01 3.610 20,000,000.00 02/25/02 Golden Gate Bank 06/01 /01 3.630 9,000,000.00 02/25/02 Mid -Peninsula Bank 05/02/01 3.930 35,000,000.00 10/30/01 Mid -Peninsula Bank 06/01/01 3.620 5,000,000.00 02/25/02 Mid -Peninsula Bank 09/14/01 3.000 10,000,000.00 03/13/02 Peninsula Bank of Commerce 06/11/01 3.600 15,000,000.00 02/25/02 PASADENA Community Bank 08/13/01 3.380 15,000,000.00 02/08/02 Community Bank 04/25/01 3.770 5,000,000.00 04/25/02 Community Bank 06/22/01 3.400 20,000,000.00 06/21/02 Community Bank 07/11/01 3.520 20,000,000.00 07/11/02 Wescom Credit Union 04/12/01 4.170 25,000,000.00 10/09/01 Wescom Credit Union 05/15/01 3.810 10,000,000.00 11/13/01 Wescom Credit Union 06/18/01 3.600 15,000,000.00 12/14/01 Wescom Credit Union 07/30/01 3.540 15,000,000.00 01/28/02 PICO RIVERA Pacific Western National Bank 05/29/01 3.760 1,000,000.00 11/20/01 22 JlTIIT, I PLACERVILLE El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank POMONA PFF Bank and Trust PFF Bank and Trust PORTERVILLE Bank of the Sierra QUINCY Plumas Bank RANCHO SANTA FE La Jolla Bank, FSB La Jolla Bank, FSB La Jolla Bank, FSB La Jolla Bank, FSB RED BLUFF Tehama Bank Tehama Bank REDDING North Valley Bank REDWOOD CITY TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 02/08/01 , 4.770 5,000,000.00 02/08/02 03/07/01 4.520 5,000,000.00 03/07/02 03/22/01 4.210 5,000,000.00 03/22/02 04/13/01 4.100 5,000,000.00 04/12/02 04/13/01 4.100 5,000,000.00 04/12/02 05/02/01 3.910 5,000,000.00 05/02/02 06/18/01 3.460 5,000,000.00 06/10/02 06/05/01 3.640 5,000,000.00 06/10/02 03/09/01 4.700 10, 000, 000.00 12/04/01 08/28/01 3.420 8,000,000.00 02/28/02 07/25/01 3.590 10,000,000.00 10/23/01 05/23/01 3.800 2, 000, 000.00 02/20/02 05/25/01 3.760 15,000,000.00 11/20/01 09/24/01 2.320 10,000,000.00 02/01/02 06/06/01 3.620 10,,000,000.00 03/01/02 08/06/01 3.500 15,000,000.00 08/06/02 08/30/01 3.450 4,000,000.00 11/30/01 07/03/01 3.620 5,000,000.00 07/03/02 V 03/19/01 4.310 3,000,000.00 12/14/01 Provident Central Credit Union 05/04/01 . 3.910 20,000,000.00 11/01/01 23 NAME RICHMOND TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE Mechanics Bank 10/13/00 5.980 10,000,000.00 10/12/01 Mechanics Bank 03/07/01 4.520 10,000,000.00 03/07/02 Mechanics Bank 04/06/Q1 4.000 10,000,000.00 04/05/02 Mechanics Bank 04/25/01 3.790 10,000,000.00 04/25/02 Mechanics Bank 05/07/01 3.870 10,000,000.00 05/07/02 Mechanics Bank 06/12/01 3.560 10,000,000.00 06/12/02 Mechanics Bank 07/11/01 3.520 10,000,000.00 07/11/02 Mechanics Bank 08/13/01 3.490 10,000,000.00 08/13/02 SACRAMENTO American River Bank 01/11/01 5.100 1,500,000.00 10/12/01 American River Bank 04/17/01 4.190 1,000,000.00 10/15/01 American River Bank 07/10/01 3.600 1,500,000.00 01/14/02 American River Bank 09/28/01 2.370 1,000,000.00 03/29/02 American River Bank 09/24/01 2.360 3,000,000.00 03/29/02 American River Bank 06/26/01 3.380 1,000,000.00 06/26/02 Bank of Sacramento 06/04/01 3.620 500,000.00 11/15/01 Bank of Sacramento 05/17/01 3.720 1,000,000.00 11/15/01 Bank of Sacramento 06/26/01 3.510 1,000,000.00 12/21/01 Golden One Credit Union 06/08/01 3.610 . 10,000,000.00 12/05/01 Golden One Credit Union 03/23/01 4.120 20,000,000.00 03/22/02 Golden One Credit Union 04/25/01 3.770 10,000,000.00 04/25/02 Golden One Credit Union 06/08/01 3.600 10,000,000.00 06/07/02 Merchants National Bank 04/23/01 1.840 2,000,000.00 10/19/01 Merchants National Bank 07/23/01 3.460 2,000,000.00 07/23/02 River City Bank 04/06/01 4.070 4,000,000.00 10/04/01 River City Bank 04/25/01 3.820 3,000,000.00 10/29/01 River City Bank 08/28/01 3.470 2,000,000.00 11/26/01 River City Bank 07/03/01 3.660 2,000,000.00 01/07/02 Sanwa Bank of California 07/26/01 3.560 22,000,000.00 01/23/02 U.S. Bank 05/24/01 3.770 25,000,000.00 11/20/01 U.S. Bank 08/07/01 3.500 25,000,000.00 02/04/02 U.S. Bank 08/07/01 3.550 25,000,000.00 05/06/02 Union Bank of California 07/23/01 3.540 50,000,000.00 10/19/01 Union Bank of California 04/30/01 3.890 100,000,000.00 10/29/01 Union Bank of California 08/14/01 3.430 150,000,000.00 11/09/01 Union Bank of California 09/21/01 2.230 100,000,000.00 12/19/01 United California Bank 09/07/01 3.380 60,000,000.00 03/06/02 24 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAL_ Community Bk Central Calif 07/27/01 3.570 5,000,000.00 10/25/01 SAN BERNARDINO Business Bank of California. .07/10/01 3.630 8,000,000.00 01/09/02 Business Bank of California 08/06/01 3.530 12,000,000.00 02/05/02 SAN DIEGO First Future Credit Union 09/04/01 3.320 5,000,000.00 03/01/02 First United Bank 02/16/01 4.950 1,000,000.00 02/15/02 Mission Federal Credit Union 07/30/01 3.570 10,000,000.00 10/31/01 Mission Federal Credit Union 08/28/01 3.430 10,000,000.00 02/27/02 Neighborhood National Bank 08/24/01 3.420 2,000,000.00 11/21/01 Santel Federal Credit Union 06/04/01 3.570 5,000,000.00 11/30/01 Santel Federal Credit Union 06/22/01 3.520 3,000,000.00 12/19/01 SAN FRANCISCO America California Bank 07/30/01 3.610 1,000,000.00 10/31/01 America California Bank 07/30/01 3.570 1,500,000.00 01/28/02 Bank of Canton California 06/15/01 3.570 20,000,000.00 12/12/01 Bank of Canton California 09/10/01 3.230 20,000,000.00 03/08/02 Bank of Canton California 05/22/01 3.770 15,000,000.00 05/22/02 Bank of Canton California 07/16/01 3.550 25,000,000.00 07/16/02 Bank of Canton California 08/31 /01 3.470 20,000,000.00 08/30/02 Bank of the West 04/16/01 4.140 50,000,000.00 10/15/01 Bank of the West 05/25/01 3.750 142,000,000.00 11/20/01 Bank of the West 07/06/01 3.650 34,000,000.00 01102J02 Bank of the West 07/09/01 3.600 50,000,000.00 01/08/02 Bank of the West 07/27/01 3.560 76,500,000.00 01/24/02 Bank of the West 08/17/01 3.420 25,000,000.00 02/20/02 Bank of the West 08/02/01 3.560 25,000,000.00 02/20/02 Bank of the West 08/24/01 3.400 50,000,000.00 02/20/02 California Federal Bank 04/4 9/01 3.980 100,000,000.00 10/16/01 California Federal Bank 07/06/01 3.650 8,000,000.00 01/04/02 California Federal Bank 07/06/01 3.650 42,000,000.00 01/04/02 California Federal Bank 05/24/01 3.730 50,000,000.00 02/22/02 California Pacific Bank 03/19/01 4.300 1,000,000.00 12/14/01 Millennium Bank 07/02/01 3.680 2,000,000.00 10/29/01 Oceanic Bank 03/15/01 4.430 4,000,000.00 03/15/02 Trans Pacific National Bank 03/19/01 4.250 800,000.00 03/19/02 25 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN FRANCISCO (continued) United Commercial Bank 03/20/01 4.320 25,000,000.00 12/14/01 United Commercial Bank 08/31/01 3.340 30,000,000.00 02/28/02 United Commercial Bank 04/04/01 4.160 30,000,000.00 04/04/02 United Commercial Bank 06/05/01 3.660 10,000,000.00 06/05/02 United Commercial Bank. 07/31/01 3.480 40,000,000.00 07/31/02 SANJOSE Heritage Bank of Commerce 08/17/01 3.410 2,000,000.00 02/15/02 Meriwest Credit Union 04/23/01 3.990 5,000,000.00 10/19/01 Meriwest Credit Union 07/20/01 3.560 5,000,000.00 01/18/02 Meriwest Credit Union 08/10/01 3.490 5,000,000.00 02/06/02 Meriwest Credit Union 08/28/01 3.440 5,000,000.00 02/28/02 San Jose National Bank 05/04/01 3.920 10,000,000.00 11/01/01 San Jose National Bank 04/30/01 3.870 10,000,000.00 04/30/02 Santa Clara Co. Fed. C.U. 08/07/01 3.500 15,000,000.00 02/05/02 SAN LUIS OBISPO First Bank of San Luis Obispo 05/10/01 3.700 2,000,000.00 11/06/01 First Bank of San Luis Obispo 03/19/01 4.310 5,000,000.00 12/14/01 Mission Community Bank 04/12/01 4.050 1,500,000.00 10/11/01 Mission Community Bank 06/12/01 3.650 1,000,000.00 12/10/01 Mission Community Bank 09/10/01 3.250 1,000,000.00 03/08/02 San Luis Trust Bank 04/09/01 4.020 1,350,000.00 10/10/01 San Luis Trust Bank 05/01 /01 4.040 1,000,000.00 10/26/01 SAN MARINO East West Federal Bank 05/18/01 3.720 38,000,000.00 11/16/01 East West Federal Bank 05/30/01 3.710 35,000,000.00 11/28/01 East West Federal Bank 07/06/01 3.660 12,000,000.00 01/04/02 East West Federal Bank 06/04/01 3.590 30,000,000.00 01/04/02 East West Federal Bank 08/02/01 3.560 35,000,000.00 02/07/02 SAN RAFAEL Metro Commerce Bank 06/01/01 3.610 1,800,000.00 11/28/01 Westamerica Bank 07/13/01 3.590 50,000,000.00 10/11/01 Westamerica Bank 08/14/01 3.450 50,000,000.00 11/09/01 Westamerica Bank 09/20/01 2.250 25,000,000.00 12/19/01 Westamerica Bank 07/18/01 3.510 25,000,000.00 07/18/02 26 NAME SAN RAFAEL (continued Westarnedca Bank SAN RAMON EBTEL Federal Credit Union EBTEL Federal Credit Union EBTEL Federal Credit Union EBTEL Federal Credit Union SANTA BARBARA FNB of Central California FNB of Central California FNB of Central California FNB of Central California FNB of Central California Los Robles Bank Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust Santa Barbara Bank & Trust SANTA CLARITA Valencia Bank & Trust SANTA MARIA Hacienda Bank SANTA ROSA National Bank of the Redwoods National Bank of the Redwoods Redwood Credit Union Redwood Credit Union SONORA Central California Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 07/30/01 3.490 50,000,000.00 07/30/02 .05/18/01 3.690 1,000,000.00 11 /14/01 06/22/01 3.520 750,000.00 12/19/01 07/06/01 3.670 1,000,000.00 01/02/02 08/17/01 3.440 750,000.00 02/13/02 04/17/01 4.190 10,000,000.00 10/12/01 03/06/01 4.650 10,000,000.00 11/30/01 07/23/01 3.570 5,000,000.00 01/25/02 07/09/01 3.590 10,000,000.00 01/25/02 09/12/01 3.220 10,000,000.00 03/11/02 07/27/01 3.560 6,000,000.00 02/08/02 04/06/01 4.060 10,000, 000.00 10/01 /01 05/03/01 3.940 10,000,000.00 11/01/01 06/08/01 3.620 10,000,000.00 11 /30/01 03/09/01 4.490 10,000,000.00 11 /30/01 07/06/01 3.650 30,000,000.00 01/25/02 07/27/01 3.560 10,000,000.00 02/08/02 09/17/01 3.000 4,000,000.00 03/19/02 09/11 /01 3.260 1,000,000.00 03/11/02 04/30/01 3.860 10,000,000.00 10/29/01 07/31/01 3.510 5,000,000.00 01/28/02 06/04/01 3.600 17,000,000.00 11 /30/01 07/09/01 3.610 8,000,000.00 12/28/01 09/04/01 3.410 1,000,000.00 27 12/03/01 NAME STOCKTON TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE Pacific State Bank 04/16/0a 4.160 1,000,000.00 10/12/01 Pacific State Bank 07/11/01 3.620 1,000,000.00 01/08/02 Union Safe Deposit Bank 04/13/01 4.100 10,000,000.00 10/11/01 Union Safe Deposit Bank 05/08/01 3.810 10,000,000.00 11/05/01 Union Safe Deposit Bank 06/14/01 3.660 10,000,000.00 12/11/01 Union Safe Deposit Bank 07/16/01 3.640 5,000,000.00 01/23/02 Union Safe Deposit Bank 07/26/01 3.590 10,000,000.00 01/23/02 Union Safe Deposit Bank 08/07/01 3.520 10,000,000.00 02/14/02 Union Safe Deposit Bank 08/22/01 3.420 10,000,000.00 03/01/02 Washington Mutual Bank 05/01/01 3.870 30,000,000.00 10/26/01 Washington Mutual Bank 06/01/01 3.620 30,000,000.00 11/28/01 Washington Mutual Bank 03/14/01 4.500 30,000,000.00 12/10/01 Washington Mutual Bank 06/26/01 3.470 15,000,000.00 12/21/01 Washington Mutual Bank 07/24/01 3.570 30,000,000.00 01/24/02 Washington Mutual Bank 08/23/01 3.390 30,000,000.00 02/19/02 SUNNYVALE Asiana Bank TORRANCE 09/26/01 2.420 1,500,000.00 12/20/01 China Trust Bank (USA) 07/23/01 3.570 25,000,000.00 10/19/01 China Trust Bank (USA) 08/17/01 3.440 20,000,000.00 11/16/01 China Trust Bank (USA) 09/11/01 3.300 5,000,000.00 12/14/01 China Trust Bank (USA) 09/06/01 3.480 20.000,000.00 12/14/01 South Bay Bank 05/04/01 3.930 4,000,000.00 11/08/01 South Bay Bank 05/25/01 3.770 2,000,000.00 11/20/01 South Bay Bank 07/27/01 3.560 1,000,000.00 01/25/02 South Bay Bank 06/07/01 3.620 3,000,000.00 03/01/02 South Bay Bank 09/06/01 3.430 5,000,000.00 03/15/02 TU_ First Fidelity Investment & Loan 07/19/01 3.580 10,000,000.00 10/17/01 First Fidelity Investment & Loan 07/30/01 3.560 9,000,000.00 11/02/01 First Fidelity Investment & Loan 08/07/01 3.560 6,000,000.00 11/06/01 First Fidelity Investment & Loan 09/05/01 3.460 15,000,000.00 12/05/01 Sunwest Bank 07/10/01 3.640 3,500,000.00 10/09/01 Sunwest Bank 04/20/01 3.910 2,500,000.00 10/17/01 Sunwest Bank 07/26/01 3.570 5,800,000.00 11/01/01 Sunwest Bank 08/08/01 3.540 2,000,000.00 11/06/01 28 TIME DEPOSITS DEPOSIT PAR N_ DATE YIELD AM_ �$� TUSTIN (continued) Sunwest Bank 09/07/01 3.390 VACAVILLE Travis Credit Union 08/31/01 3.460 VISALIA Bank of Visalia 08/01/01 WATSONVILLE Monterey Bay Bank 07/02/01 Monterey Bay Bank 09/20/01 WHITTIER Quaker City Bank 04/18/01 Quaker City Bank 05/31/01 Quaker City Bank 06/27/01 Quaker City Bank 07/12/01 Quaker City Bank 04/06/01 TOTAL TIME DEPOSITS SEPTEMBER 2001 29 3.550 3.680 2.390 MATURITY D_ 1,000,000.00 12/07/01 40, 000, 000.00 11 /30/01 2, 000, 000.00 10/30/01 8,000,000.00 01/07/02 8,000,000.00 03/20/02 4.200 8,000,000.00 10/16/01 3.700 25,000,000.00 11/27/01 3.490 10, 000, 000.00 12/28/01 3.570 14,000,000.00 01/08/02 4.000 8,000,000.00 04/05/02 49844,0459000.00 BANK DEMAND DEPOSITS SEPTEMBER 2001 ($ in thousands) DAILY BALANCES DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ .341,698 $ 3,374,766 2 341,698 3,374,766 3 341,698 3,374,766 4 _74,681 197929484 5 4481981 1,6539511 6 692,517 19682,765 7 262,429 1,873,041 8 262,429 11873,041 9 262,429 1,873,041 10 435,662 1,675,571 11 331,821 199559958 12 8219372 1,5789261 13 501,533 1,6759481 14 5709689 1,5649154 15 570,689 115649154 16 6709689 195709056 17 7549340 1,555,870 18 5500000 1,4269039 19 3979336 196829627 20 643,260 1,887,601 21 5039025 29295,837 22 5039025 2,295,837 23 503,025 2,2959837 24 4069717 197079615 25 717,565 197829415 26 6619532 2,2099421 27 530,637 2,3529564 28 378,102 2,3889653 29 378,102 2,3889653 30 378,102 2,3939393 AVERAGE DOLLAR DAYS $ 471,359 a/ a/ The prescribed bank balance for September was $532,912. This consisted of $327,851 in compensating balances for services, balances for uncollected funds of $210,562 and a deduction of $5,501 for September delayed deposit credit. 30 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1627 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on September 19, 2001, 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- actions, 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 $ 327,851,000 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: Time Deposits in Various Financial Institutions In Securities (sections 16503a Estimated From To Transactions (section 16430)* and 16602)* Total (1) 09/17/2001 09/21/2001 $ 3,504,800,000 $ 43,722,455,000 $ 4,851,045,000 $ 48,573,500,000 (2) 09/24/2001 09/28/2001 $ (1,559,900,000) $ 42,162,555,000 $ 4,851,045,000 $ 47,013,600,000 (3) 10/01/2001 10/05/2001 $ 4,418,000,000 $ 46,580,555,000 $ 4,851,045,000 $ 51,431,600,000 (4) 10/08/2001 10/12/2001 $ (634,100,000) $ 45,946,455,, 000 $ 4851,045,000 $ 50,797,500,000 (5) 10/15/2001 10/19/2001 $ 704,200,000 $ 46,650,655,000 $ 4,851,045,000 $ 51,501,700,000 w 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 $ 327,851,000. POOLED MONEY INVESTMENT OARD: C rson Member ' Dated: September 19, 2001 ' ' Government Code Member --_--=- 31