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2003 12 10 IABP.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 December 10, 2003 - 5:30 P.M. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call II PUBLIC COMMENT- (This is the time set aside for public comment on any matter not scheduled on the agenda.) I11 CONFIRMATION OF AGENDA IV CONSENT CALENDAR Approval of Minutes of Meeting on November 12, 2003 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for October, 2003 VI CORRESPONDENCE AND WRITTEN MATERIAL A. City of La Quinta FY 03/04 Audited Financial Statements B. Month End Cash Report - November, 2003 C. Pooled Money Investment Board Report - September, 2003 VII BOARD MEMBER ITEMS VIII ADJOURNMENT INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: December 10, 2003 ITEM TITLE: Transmittal of Treasury Report for October 31, 2003 BACKGROUND: Attached please find the Treasury Report October 31, 2003. RECOMMENDATION: Review, Receive and File the Treasury Report for October 31, 2003. hn M. Falconer', Finance Director MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for October 31, 2003 DATE: November 25, 2003 Attached is the Treasurer's Report for the month ending October 31, 2003. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Beginning Purchased Notes Sold/Matured Other Ending Change Cash ($115,765) $233,514 (1) $117,749 $233,514 LAW $17,104,884 9,265,724 (5,000,000) 21,370,608 4,265,724 US Treasuries (2) $67,063,477 10,036,396 (2,000,000) 31,151 75,131,024 8,067,547 US Gov't Agencies (2) $27,415,104 2,053,300 25,762 29,494,166 2,079,062 Commercial Paper (2) $0 0 0 Mutual Funds $16,133,778 1 15,761,685 372,093 15,761,685 Total $127 601 478 $21 588 934 $22 761 685 $56 913 $126 485 640 $1 115,838 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. "l John M. Falconer I Finance 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 0 3 Dat z z z z z z 0 z z xx IL y, c o_ CM n O c c d c "O O g'w � m � V U. 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O�Of� N1A�17tp z N N .- NCV)e- z N j t0 f0 <Gco Z tnavdo{n04 � 0 c, Ot�tf O^N MAP- $tG(0cocotp $�0�� N�N�N V•NN'jN�rj M .gyp 5p � N �O�r-r; N�N�N V'l'00'fC7� ry tCtOtG<O�p N�In NN�N �PftOco tCtofDt0� 'NON.-N .'cowl --%Wo ID ;ct . c? 41 - -th Us a ��Sa C C = C C N U � Jegopo � . c w ieq"wes a LLa pO� O m 3SnonV C C C N Co /Inf W W W ��-��p00000000O l0 �O ld iw*Ad w 02 0 CITY OF LA QUINTA CITY CITY RDA RDA FA BALANCE SHEET 10/31/03 FOXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL ASSETS: POOLED CASH (14,941,216.01) 0.00 0.00 40,878,391.88 0.00 0.00 (923.03) 0.00 25,936,252.84 LORP INVESTMENT IN POOLED CASH 0.00 0.00 0.00 537,000.00 0.00 0.00 0.00 0.00 537,000.00 INVESTMENT T-BILUNOTES & OTHER 60,500,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 60,500,000.00 AUTO MALL CASH 0.00 0.00 0.00 LORP CASH 0.00 0.00 0.00 15,652.84 0.00 0.00 0.00 0.00 15,652.84 BOND REDEMPTION CASH 0.00 0.00 0.00 107,714.86 0.00 0.00 5.83 0.00 107,720.69 BOND RESERVE CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BOND PROJECT CASH 0.00 0.00 0.00 39,381,825.68 0.00 0.00 0.00 0.00 39,361,825.68 BOND ESCROW CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PETTY CASH 1,000.00 0.00 0.00 0.00 0.00 0.00 0.00 _ 0.00 1,000.00 CASH & INVESTMENT TOTAL 45,559,783.99 0.00 0.00 80,920,585.26 0.00 0.00 (917.20) 0.00 126A79,452.05 INVESTMENT IN LAND HELD FOR RESALE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ACCOUNTS RECEIVABLE 40,665.30 0.00 0.00 60,900.00 0.00 0.00 0.00 0.00 101,565.30 PREMIUMIDISCOUNT ON INVESTMENT 56,807.31 0.00 0.00 (50,618.97) 0.00 0.00 0.00 0.00 6,188.34 LCI2P-ACCOUNTS RECEIVABLE 0.00 0.00 0.00 72,67t.34 0.00 0.00 0.00 0.00 72,677.34 INTEREST RECEIVABLE 32,829.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32,829.69 LOANMOTES RECEIVABLE 0.00 0.00 0.00 12,613,564.62 0.00 0.00 0.00 0.00 12,613,564.62 DUE FROM OTHER AGENCIES 2,496.080.55 0.00 2,496,080.55 DUE FROM OTHER AGENCIES - CVAG 2,299,096.69 0.00 0.00 0.00 0.00 0.00 0.00 2,299,096.69 CVAG ALLOWANCE (2,299,096.69) (2,299,096.69) DUE FROM OTHER GOVERNMENTS 30,600.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30,600.37 DUE FROM OTHER FUNDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 DUE FROM RDA 15,597,550.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15,597,550.20 INTEREST ADVANCE -DUE FROM RDA 6,125,428.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,125,428.52 ADVANCES TO OTHER FUNDS (126,374.00) 5,238,815.79 5,112,441.79 NSF CHECKS RECEIVABLE 3,770.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,770.60 ACCRUED REVENUE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 FOXED ASSETS 0.00 306,249,652.60 306,249,652.60 ACCUMULATED DEPRECIATION 929,209.62 0.00 929,209.62 TRAVEL ADVANCES 2,525.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,525.00 EMPLOYEE ADVANCES 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PREPAID EXPENSES 17,515.36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,515.36 RECEIVABLE TOTAL 25,206,608.52 306,249,652.60 0.00 17,935,338.78 0.00 0.00 0.00 0.00 349,391,599.90 WORKER COMPENSATION DEPOSIT 234,177.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 234,177.00 RENT DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 UTILITY DEPOSITS 75.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 75.00 MISC. DEPOSITS 998.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 998.21 DEPOSITS TOTAL 235,250.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 235,250.21 GENERAL FIXED ASSETS 0.00 0.00 0.00 0.00 52.094,306.00 0.00 0.00 0.00 52,094,306.00 ACCUMULATED DEPRECIATION 0.00 0.00 0.00 AMOUNT AVAILABLE TO RETIRE LIT DEBT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 AMOUNT TO BE PROVIDED FOR L/T DEBT 0.00 0.00 1,625,259.96 0.00 0.00 158,460,254.00 0.00 7,190,000.00 167,275,513.96 TOTAL OTHER ASSETS 0.00 0.00 1,625,259.96 0.00 52,094,306.00 158,460,254.00 0.00 7190,000.00 219,369,819.96 TOTAL ASSETS 71,001,642.72 306 249 652.60 1,625,259.96 98,855,924.04 52,094,306.00 158,460,254.00 (917.20) 7,190,000.00 695,476,122.12 LIABILITIES: ACCOUNTS PAYABLE 14,329.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14,329.44 DUE TO OTHER AGENCIES 10,629.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,629.06 DUE TO OTHER FUNDS 0.00 0.00 0.00 3,239,445.14 0.00 0.00 0.00 0.00 3,239,445.14 INTEREST ADVANCE -DUE TO CITY 5,238,813.79 0.00 0.00 18,357,163.00 0.00 0.00 0.00 0.00 23,595,976.79 ACCRUED EXPENSES 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 INTEREST PAYABLE 0.00 0.00 0.00 0.00 0•00 PAYROLL LIABILITIES 54,905.92 0.00 0.00 0.00 0.00 0.00 0.00 0.00 54,905.92 STRONG MOTION INSTRUMENTS 2,277.09 0.00 0.00 0.00 0.00' 0.00 0.00 0.00 2,277.09 FRINGE TOED LIZARD FEES 105,828.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 105,828.00 SUSPENSE 77,185.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 77,185.23 DUE TO THE CITY OF LA QUINTA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PAYABLES TOTAL 5,503,968.53 0.00 0.00 21,596,608.14 0.00 0.00 0.00 0.00 27,100,576.67 ENGINEERING TRUST DEPOSITS 1,400.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,400.00 SO. COAST AIR QUALITY DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LORP DEPOSITS 0.00 0.00 0.00 18,664.00 0.00 0.00 0.00 0.00 18,664.00 DEVELOPER DEPOSITS 1,265,906.57 0.00 0.00 2,835.00 0.00 0.00 0.00 0.00 1,268,741.57 MISC. DEPOSITS 442.414.82 0.00 0.00 25,000.00 0.00 0.00 0.00 0.00 467,414.82 AGENCY FUND DEPOSITS 1,197,645.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,197,645.04 TOTAL DEPOSITS 2,907,366.43 0.00 0.00 46,499.00 0.00 0.00 0.00 0.00 2,953,865.43 DEFERRED REVENUE 2,496,080.55 0.00 0.00 10,495,978.56 0.00 0.00 0.00 0.00 12,992,059.11 OTHER LIABILITIES TOTAL 2,496,080.55 0.00 0.00 10,495,978.56 0.00 0.00 0.00 0.00 12,992,059.11 COMPENSATED ABSENCES PAYABLE 0.00 0.00 462,260.37 0.00 0.00 0.00 0.00 0.00 462,260.37 DEVELOPER AGREEMENT 0.00 0.00 684,688.59 0.00 0.00 0.00 0.00 0.00 684,688.59 DUE TO THE CITY OF LA QUINTA 0.00 0.00 478,311.00 0.00 0.00 0.00 0.00 0.00 478,311.00 DUE TO COUNTY OF RIVERSIDE 0.00 0.00 0.00 0.00 0.00 2,150,000.00 0.00 0.00 2,150,000.00 DUE TO C.V. UNIFIED SCHOOL DIST. 0.00 0,00 0.00 0.00 0.00 7,365,254.00 0.00 0.00 7,365,254.00 DUE TO DESERT SANDS SCHOOL DIST. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BONDS PAYABLE 0.00 0.00 0.00 0.00 0.00 148,945,000.00 0.00 7,190,000.00_156,135,000.00 TOTAL LONG TERM DEBT 0.00 0.00 1,625,259.96 0.00 0.00 158,460,254.00 0.00 7,190,000.00 167,275,513.96 TOTAL LIABILITIES 10,907,415.51 0.00 1,625,259.96 32,139,085.70 0.00 158,460,254.00 0.00 7,190,000.00 210,322,015.17 EQUITY -FUND BALANCE 60,094,227.23 306,249,652.60 0.00 66,716,838.34 52,094,306.00 0.00 (917.20) 0.00 485,154,106.97 TOTAL LIABILITY & EQUITY 71,001,642.74 306,249,652.60 1,625,259.96 98,855,924.04 52,094,306.00 158,460,254.00 (917.20) 7,190,000.00 695,476,122.14 (0.02) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.02) CASH & INVESTMENT TOTAL 126,479,452.05 PREMIUM/DISCOUNT ON INVESTMENT 6,188.34 TOTAL 126,485,640.39 INVESTMENT ADVISORY BOARD Meeting Date: December 10, 2003 ITEM TITLE: City of La Quinta Fiscal Year 2003-04 Audited Financial Statement BACKGROUND: Correspondence & Written Material Item A Mr. Mike Harrison, 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. M. Falconef, Finance Director INVESTMENT ADVISORY BOARD Meeting Date: December 10, 2003 TITLE: Month End Cash Report November 2003 and Other selected Financial Data BACKGROUND: Correspondence & Written Material Item B 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. RECOMMENDATION: Information item only. Go O pppp co W) O 00 0 00 p t� m p O LA f� �COOOCDmp W ON��I�00 0vp .+<0NOO� ~ OO1��0Op 04 O N WO CNOMON�ti0jLA�8 mt�C�aN No000NN LAO � 00 c 00 o O mpppp pp0LO —4 W)D coocmM0C ~ uco Ln CO co 0) ONVWN41pp 0� m Lp C C'il Go O NNmmV(D�N��AT-O m m m 00O qd 1": 110: O O a LL 00 00 00 0 0 g �gn O O O O O N r- V r V �W O 00 0) q* m co m a� N N N pp pp N �+ lL O ► O L Q LA 0 0 N_ O � I� U Lw W) W) LA O N W W LA N N CA V- o LL. 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FRB: H.15--Selected Interested Rates, Web -Only Daily Update --November 28, 2003 Page 1 of 3 Federal Reserve Statistical Release H+1 Selected Interest Fates (Daily) Skip to Content Release Date: November 28, 2003 NVeekly._..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 throug H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release SELECTED INTEREST RATES November 28, 2003 Yields in percent per annum Instruments 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 primary credit 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 7-year 10-year 2003 2003 2003 2003 Nov Nov Nov Nov 24 25 26 27 0.98 1.02 1.01 1.01 1.00 1.01 1.04 1.05 1.05 1.04 1.07 1.06 1.07 1.01i 1.02 1.02 1.06 1.06 1.05 1.08 1.08 1.06 1.06 1.05 1.05 1.11 1.11 1.10 1.16 1.17 1.17 1.03 1.04 1.04 1.08 1.10 1.11 1.16 1.16 1.16 4.00 4.00 4.00 4.00 2.00 2.00 2.00 2.00 0.92 0.95 0.95 0.94 0.93 0.92 1.02 1.01 1.02 0.94 0.97 0.97 0.96 0.95 0.94 1.04 1.03 1.04 1.33 1.32 1.35 1.94 1.89 1.97 2.44 2.40 2.48 3.24 3.20 3.27 3.76 3.72 3.79 4.23 4.19 4.25 http://www.federalreserve.gov/Releases/Hl 5/update/ 12/1/2003 FRB: H.15--Selected Interested Rates, Web -Only Daily Update --November 28, 2003 Page 2 of 3 20-year 5.11 5.07 5.12 Treasury long-term average (25 years and above) 12 13 5.14 5.11 5.15 Interest rate swaps 14 1-year 1.50 1.51 1.52 2-year 2.21 2.22 2.22 3-year 2.80 2.80 2.81 4-year 3.25 3.25 3.26 5-year 3.60 3.61 3.61 7-year 4.11 4.11 4.10 10-year 4.59 4.59 4.58 30-year 5.35 5.35 5.33 Corporate bonds Moody's seasoned Aaa 15 5.60 5.56 Baa 6.61 6.57 State & local bonds 16 Conventional mortgages 17 See overleaf for footnotes * Markets closed FOOTNOTES 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages (http://www.federalreserve.gov/releases/cp) for more information. 6. The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page. 7. An average of dealer offering rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. 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. 10. The rate charged for discounts made and advances extended under the Federal Reserve's primary credit discount window program, which became effective January 9, 2003. This rate replaces that for adjustment credit, which was discontinued after January 8, 2003. For further information, see www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default..htm. The rate reported is that for the Federal Reserve Bank of New York. Historical series for the rate on adjustment credit is available at www.federalreserve.gov/releases/hl5/data.htm. 11. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. 12. Based on the unweighted average of the bid yields for all Treasury http://www.federalreserve.gov/Releases/H15/update/ 12/1/2003 FRB: H.15--Selected Interested Rates, Web -Only Daily Update --November 28, 2003 Page 3 of 3 fixed -coupon securities with remaining terms to maturity of 25 years and over. 13. A factor for adjusting the daily long-term average in order to estimate a 30-year rate can be found at http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/lt 14. 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. 15. Moody's Aaa rates through December 6, 2001 are averages of Aaa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17. 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 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 1, 3 and 6 months and 1, 2, 3, 5, 7, 10 and 20 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. Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII Statistical releases Home I Economic research and data Accessibility I Contact Us Last update: November 28, 2003 http://www.federalreserve.gov/Releases/H15/update/ 12/1 /2003 FRB:Commercial Paper Rates and Outstandings of 3 Federal Reserve Release Commercial roaper At. h Comm Release I About I Outstandings Historical discount rates I Historical outstandings Year End Data as of November 28, 2003 Commercial Paper Rates and Outstandings Derived from data supplied by The Depository Trust Company Posted December 1, 2003 Discount rates Pagel AA AA A2/P2 Term Term 5nancial financial nonfinancial nonfinancial non8nsncial nonfinancial 1-day 1.04 1.04 1.13 7-day 1.02 1.03 F-1.14 15-day 1.03 1.03 1.12 30-day 1.02 1.02 1.12 60-day 1.05 1.07 F-1.25 F�01 1.06 1.09 134 Yield curve Monev market basis Percent 1.34 1.32 1.30 1.28 1.26 1.24 1.22 1.20 1.18 1.16 1.14 1.12 1.10 1.08 1.06 1.04 1.02 1 7 15 30 60 90 Days to Maturity Finandal - -- Nonfinancial ••••• A2 f P2 http://www.federalreserve.gov/Releases/CP/ 12/ 1 /2003 FRB:Commercial Paper Rates and Outstandings Page 2 of 3 Discount rate spread Thirtv-dav A2/P2 less AA nonfinancial commercial paper (daily) Basis points 110 1 OD 90 80 70 so ,50 40 30 20 10 0 01 MAY01 01 SEP01 01 JAN02 01 MAY02 01 SEP02 01 JAN03 01 MAY03 01 SEP03 01,PM4 . A21i"P2 Spread — -- A2/P2 spread. 5—day moving averacp Discount rate history Thirtv-dav commercial paper (daily) INV Percent S 4 3 2 0 01 MAY01 01 SEP01 01 JAN02 01 MAY02 01 SEP02 01 JANC3 01 MAY03 01 SEP03 01 JAN04 _ Financial — — — Nonfinancial •••-- A2/P2 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars Billions of dollars http://www.federalreserve.gov/Releases/CP/ 12/1/2003 FRB:Commercial Paper Rates and Outstandings Page 3 of 3 1241 12N 1221 1211 1201 1191 1181 1171 1161 250 240 230 220 210 20D 190 180 170 160 150 140 130 120 11 50 01 MAY01 01 SEP01 01 JAN02 01 MAY02 01 SEP02 01 JAN03 01 MAY03 01 SEP03 01 JAN04 — Finandal — — — Nonfinandal 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 2003:Q3 Release I About I Outstandin&s I Historical discount rates' Historical outstandings I Year End Home I Statistical releases Accessibilitvl Contact Us Last update: December 1, 2003 http://www.federalreserve.gov/Releases/CP/' 12/1 /2003 Phil Angelides, State Treasurer . Inside the State Treasurers Office Local Agency Investment Fund (LAIF) PMIA Performance Report W1111122/2000301.59 01.059R21R1 11/13/2003 1.57 1.59 206 11/14/2003 1.57 1.59 205 11/15/2003 1.57 1.59 205 11/16/2003 1.57 1.59 205 11 /17/2003 1.56 1.58 202 11 /18/2003 1.56 1.59 198 11/19/2003 1.56 1.59 199 11 /20/2003 1.55 1.59 200 11/21/2003 1.54 1.59 202 11/22/2003 1.54 1.59 202 11 /23/2003 1.54 1.59 202 11/24/2003 1.55 1.59 203 111/25/20031 1.54 1.59 199 Corpoi Boni 4.20' Commercial Paper 16.85% LAIF Performance Report Quarter Ending 9/30/03 Apportionment Rate: 1.63% Earnings Ratio: .00004458093986476 Fair Value Factor: 1.001654256 PMIA Average Monthly Effective Yields August 2003 1.632% September 2003 1.635% October 2003 1.596% Pooled Money Investment Account Portfolio Composition $53.9 Billion 10/31/03 Loans Treasuries 12.83% 16.99% Time Deposits CD'sBN's 10.47% 13.29% Mortgages 0.01 % jencies 5.36% ■ Treasuries 0 Mortgages M Agencies ■ CD's/BN's O Time Deposits ® Bankers Acceptances ■ Repo * Commercial Paper Il Corporate Bonds Loans ■ Reverses 9 c m E E a06 03 5 IL z° q ,. $coi ^ > o �`!� vm T-M�o M� M m g N co p� N $� r- zCO Q N a v 0 0 0 O O O ciAn M mU 7pp 4 O� g A� t .-+ N d gig 8r� vMco ON v O �. N � p {O 7y m Vco ON aACM cl Co r-t It Go cov it r H �m E C c w o .. m U 0�CL C ul N NO�Na0e000f�040 v v Z f— W Z � w z coZ a U� U>�0 cr. �ww8W� 0a wz UJQWZDIL) a W V�Uoi5a z Z��JJ�aO�pF- w--20=42m iLL C7wUUam0aW- INVESTMENT ADVISORY BOARD Meeting Date: December 10, 2003 TITLE: Pooled Money Investment Board Report for September 2003 BACKGROUND: Correspondence & Written Material Item C The Pooled Money Investment Board Report for September 2003 is included in the agenda packet. RECOMMENDATION: Receive & File n M. Falconel, Finance Director Philip Angelides September 2003 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT TABLE OF CONTENTS SUMMARY................................................................. 01 SELECTED INVESTMENT DATA .................................... 02 PORTFOLIO COMPOSITION ........................................ 03 INVESTMENT TRANSACTIONS ..................................... 04 TIMEDEPOSITS........................................................ 17 BANK DEMAND DEPOSITS .......................................... 28 POOLED MONEY INVESTMENT BOARD DESIGNATION... 29 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF SEPTEMBER 2003 WITH SEPTEMBER 2002 (DOLLARS IN THOUSANDS) SEPTEMBER 2003 SEPTEMBER '2002 CHANGE Average Daily Portfolio $ 61,979,704 $ 46,004,008 $ +5,975,696 Accrued Earnings $ 69,643 $ 98,474 -28,831 Effective Yield 1.636 2.604 -0.969 Average Life -Month End (In Days) 214 188 +26 Total Security Transactions Amount $ 20,322,273 $ 12,967,316 $ +7,354,957 Number "1 287 +154 Total Time Deposit Transactions Amount $ 2,873,000 $ 1,914,500 $ +958,500 Number 161 139 +12 Average Workday Investment Activity $ 1,104,537 $ 744,091 $ +360,446 Prescribed Demand Account Balances For Services $ 1,173,600 $ 694,877 $ +478,723 For Uncollected Funds $ 148,915 $ 176,429 -26,514 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 August 31, 2003 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM AMOUNT PORTFOLIO PRIOR MONTH $ 1,393,854 0 8,091,514 0 $ 9,485,368 $ 4,652,580 6,230,032 299,990 0 0 7,425,669 5,728,595 551 8,527,533 4,555 2,183,278 6,485,109 1,798,600 -397,750 $ 51,424,110 AUGUST 2003 NUMBER AMOUNT 400 $ 17,732,213 15 99,815 137 2,750,100 552 $ 20,582,128 1.632 1.642 E 2.71 +0.02 0.00 0.00 15.73 -0.34 0.00 0.00 18.44 -0.32 9.05 -0.34 12.11 +0.01 0.58 +0.39 0.00 0.00 0.00 -0.33 14.44 -1.58 11.14 +0.11 0.00 0.00 16.58 -2.18 0.01 0.00 4.25 +0.01 10.67 +0.72 3.50 +3.50 -0.77 -0.01 100.00 JULY 2003 NUMBER AMOUNT 580 $ 25,739,019 16 904,341 139 3,722,190 735 $ 30,365,550 1.653 1.653 Corpor Bonc 4.11° Commercial Paper 18.97% Pooled Money Investment Account Portfolio Composition $53.7 Billion Loans Treasuries 12.63% 17.20% 10.60% CD's/BN's 12.65% 3 )rtgages 0.01 Rio Agencies 23.83% 09/30/03 Treasuries Mortgages al Agencies CD's/BN's ❑ Time Deposits Bankers Acceptances ■ Repo Commercial Paper Corporate Bonds ❑ Loans Reverses 09/02/03 REDEMPTIONS CD W/F 1.030% 09/02/03 1.030 $ 50,000 63 $ 90,125.00 1.044 CD W/F 1.030% 09/02/03 1.030 50,000 63 90,125.00 1.044 CD W/F 1.030% 09/02/03 1.030 50,000 63 90,125.00 1.044 CD W/F 1.030% 09/02/03 1.030 50,000 63 90,125.00 1.044. CD BK SCOT 0.910% 09/02/03 0.910 50,000 74 93,527.78 0.922 CD BK SCOT 0.910% 09/02/03 0.910 50,000 74 93,527.78 0.922 CD CR AGRIC 0.920% 09/02/03 0.920 50,000 74 94,555.56 0.932 CD CR AGRIC 0.920% 09/02/03 0.920 50,000 74 94,555.56 0.932 CD TORONTO 0.925% 09/02/03 0.920 50,000 74 94,556.52 0.932 CD TORONTO 0.925% 09/02/03 '0.920 50,000 74 94,556.52 0.932 CD UBS 0.945% 09/02/03 0.940 50,000 74 96,612.10 0.953 CD UBS 0.945% 09/02/03 0.940 50,000 74 96,612.10 0.953 CD UBS 0.945% 09/02/03 0.940 50,000 74 96,612.10 0.953 CD UBS 0.945% 09/02/03 0.940 50,000 74 96,612.10 0.953 CP GMAC 09/02/03 1.240 20,000 28 19,288.89 1.258 CP GMAC 09/02/03 1.240 50,000 28 48,222.22 1.258 CP GMAC 09/02/03 1.280 40,000 63 89,600.00 1.300 CP CITIGLOBAL 09/02/03 0.910 50,000 71 89,736.11 0.924 CP CITIGLOBAL 09/02/03 0.910 50,000 71 89,736.11 0.924 CP GOLDMAN 09/02/03 0.970 50,000 77 103,736.11 0.985 CP GOLDMAN 09/02/03 0.970 50,000 77 103,736.11 0.985 CP FCAR 09/02/03 1.210 33,625 91 102,846.61 1.230 CP GECC 09/02/03 1.210 50,000 92 154,611.11 1.230 CP GECC 09/02/03 1.210 50,000 92 154,611.11 1.230 CP SRAC 09/02/03 1.520 50,000 97 204,777.78 1.547 CP GMAC 09/02/03 1.540 50,000 123 263,083.33 1.569 CP GECC 09/02/03 1.250 50,000 137 237,847.22 1.273 CP GECC 09/02/03 1.250 50,000 137 237,847.22 1.273 CP GECC 09/02/03 1.250 50,000 137 237,847.22 1.273 09/02/03 PURCHASES CP GE CO 09/26/03 1.060 50,000 CP GE CO 09/26/03 1.060 50,000 CP SRAC 10/29/03 1.270 50,000 CP FMCC 11/24/03 1.290 50,000 CP FMCC 11/24/03 1.290 50,000 CP GMAC 11/24/03 1.290 50,000 CP GMAC 11/24/03 1.290 50,000 CP FMCC 11/26/03 1.290 50,000 CP FMCC 11/26/03 1.290 50,000 CP GMAC 11/26/03 1.290 50,000 CP GMAC 11/26/03 1.290 50,000 CP CITICORP 12/01/03 1.080 30,000 CP CITICORP 12/01/03 1.080 50,000 CP CITICORP 12/01/03 1.080 50,000 CP CITICORP 12/01/03 1.080 50,000 MTN BANC ONE 6.500% 02/01/06 2.640 20,000 TREAS NOTES 2.000% 08/31/05 2.050 50,000 TREAS NOTES 2.000% 08/31/05 2.050 50,000 4 09/03/03 REDEMPTIONS DISC NOTES FNMA DISC NOTES FNMA DISC NOTES FNMA DISC NOTES FNMA DISC NOTES FNMA DISC NOTES FNMA 09/03/03 PURCHASES CD TORONTO CD TORONTO CD FORTIS CD FORTIS CP FCAR CP JP MORGAN 09/04/03 REDEMPTIONS CP KODAK CP KODAK 09/04/03 PURCHASES CP NCAT CP HOUSEHOLD CP SAFEWAY 09/04/03 PURCHASES C/ FHLMC DISC NOTES FNMA DISC NOTES FHLB 09/05/03 REDEMPTIONS CP NCAT CP SAFEWAY 09/05/03 SALES C/ FHLMC DISC NOTES FNMA DISC NOTES FHLB 09/05/03 PURCHASES C/ DISC NOTES FHLB DISC NOTES FHLB 09/03/03 0.940 25,810 77 51,892.44 0.954 09/03/03 0.940 33,849 77 68,055.29 0.954 09/03/03 0.940 50,000 77 100,527.78 0.954 09/03/03 0.940 50,000 77 100,527.78 0.954 09/03/03 0.940 50,000 77 100,527.78 0.954 09/03/03 0.940 50,000 77 100,527.78 0.954 1.120% 02/27/04 1.120 50,000 1.120% 02/27/04 1.120 50,000 1.110% 02/27/04 1.105 50,000 1.110% 02/27/04 1.105 50,000 12/02/03 1.080 50,000 02/02/04 1.110 50,000 09/04/03 1.550 50,000 09/04/03 1.550 25,000 09/05/03 1.020 25,000 09/08/03 0.950 50,000 09/05/03 1.040 40,000 1.500% 08/15/05 0.950 50,000 10/02/03 0.950 25,000 12/03/03 0.950 12,394 09/05/03 1.020 25,000 09/05/03 1.040 40,000 1.500% 08/15/05 0.950 50,000 10/02/03 0.950 25,000 12/03/03 0.950 12,394 12/05/03 0.940 50,000 12/05/03 0.940 1,224 5 10 21, 527.78 1.572 10 10,763.89 1.572 1 708.33 1.034 1 1,155.56 1.055 1 1,278.23 0.965 1 645.58 0.965 1 319.25 0.965 09/08/03 REDEMPTIONS CP HOUSEHOLD 09/08/03 0.950 50,000 4 5,277.78 0.963 CP CITICORP 09/08/03 1.060 50,000 33 48,583.33 1.075 CP CITICORP 09/08/03 1.060 50,000 33 48,583.33 1.075 CP GECC 09/08/03 1.210 50,000 97 163,013.89 1.230 CP GECC 09/08/03 1.210 50,000 97 163,013.89 1.230 CP GECC 09/08/03 1.210 50,000 97 163,013.89 1.230 CP GECC 09/08/03 1.210 50,000 97 163,013.89 1.230 09/08/03 SALES c/ DISC NOTES FHLB 12/05/03 0.940 50,000 3 3,823.14 0.956 DISC NOTES FHLB 12/05/03 0.940 1,224 3 93.53 0.956 09/08/03 SALES TREAS NOTES 2.000% 08/31/05 1.790 50,000 6 268,249.51 32.750 TREAS NOTES 2.000% 08/31/05 1.790 50,000 6 268,253.51 32.750 TREAS NOTES 2.375% 08/15/06 2.347 50,000 17 203,294.83 8.769 TREAS NOTES 2.375% 08/15/06 2.347 50,000 17 343,919.83 14.876 09/08/03 PURCHASES BN WORLD 1.030% 09/30/03 1.050 20,000 BN WORLD 1.030% 09/30/03 1.050 50,000 CP SAFEWAY 09/09/03 1.030 35,000 DISC NOTES FHLMC 02/26/04 1.085 35,386 DISC NOTES FHLMC 02/26/04 1.090 47,764 DISC NOTES FHLMC 02/26/04 1.085 50,000 DISC NOTES FHLB 02/27/04 1.060 14,348 DISC NOTES FHLB 02/27/04 1.060 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FHLB 02/27/04 1.060 50,000 09/09/03 REDEMPTIONS CD W/F 1.020% 09/09/03 1.020 50,000 60 85,000.00 1.034 CD W/F 1.020% 09/09/03 1.020 50,000 60 85,000.00 1.034 CP SAFEWAY 09/09/03 1.030 35,000 1 1,001.39 1.044 09/09/03 PURCHASES CP GECC 10/02/03 1.050 50,000 CP GECC 10/02/03 1.050 50,000 CP GECC 10/02/03 1.050 50,000 09/10/03 REDEMPTIONS CP SPARC 09/10/03 1.000 50,000 85 118,055.56 1.016 CP GECC 09/10/03 1.210 50,000 99 166,375.00 1.230 6 09/10/03 REDEMPTIONS (continued) CID GECC 09/10/03 1.210 50,000 99 166,375.00 1.230 CID GECC 09/10/03 1.210 50,000 99 166,375.00 1.230 CID GECC 09/10/03 1.210 50,000 99 166,375.00 1.230 DISC NOTES FNMA 09/10/03 0.880 28,501 83 57,825.36 0.894 DISC NOTES FNMA 09/10/03 0.880 50,000 83 101,444.44 0.894 DISC NOTES FNMA 09/10/03 0.880 50,000 83 101,444.44 0.894 09/10/03 PURCHASES CP GECC 10/02/03 1.050 50,000 CID GECC 10/02/03 1.050 50,000 CID GECC 10/03/03 1.050 50,000 09/11/03 REDEMPTIONS TREAS BILLS 09/11/03 1.170 50,000 149 242,125.00 1.192 TREAS BILLS 09/11/03 1.170 50,000 149 242,125.00 1.192 09/11/03 PURCHASES CID GECC 10/06/03 1.040 50,000 CID GECC 10/06/03 1.040 50,000 CID GECC 10/08/03 1.040 50,000 CID GECC 10/08/03 1.040 50,000 CID CITICORP 10/14/03 1.050 10,000 CID CITICORP 10/14/03 1.050 50,000 CID CITICORP 10/14/03 1.050 50,000 CID GMAC 10/14/03 1.250 40,000 CID GMAC 10/14/03 1.250 50,000 09/12/03 NO REDEMPTIONS 09/12/03 PURCHASES CD CHASE 1.040% 10/01/03 1.040 15,000 CD CHASE 1.040% 10/01/03 1.040 50,000 CD CHASE 1.040% 10/01/03 1.040 50,000 CD CHASE 1.040% 10/01/03 1.040 50,000 CD CHASE 1.040% 10/01/03 1.040 50,000 CID PREFCO 10/10/03 1.050 34,505 CID PREFCO 10/10/03 1.050 50,000 CID PREFCO 10/10/03 1.050 50,000 CID CITICORP 10/27/03 1.050 50,000 CID CITICORP 10/27/03 1.050 50,000 09/16/03 REDEMPTIONS DISC NOTES FNMA 09/15/03 1.020 50,000 31 43,916.67 1.035 DISC NOTES FNMA 09/15/03 1.020 50,000 31 43,916.67 1.035 VA 09/15/03 REDEMPTIONS (continued) DISC NOTES FNMA DISC NOTES FNMA 09/16/03 RRP TREAS NOTES TREAS NOTES TREAS NOTES TREAS NOTES 09/15/03 PURCHASES BN WORLD BN WORLD BN WORLD BN WORLD CD W/F CD W/F CD W/F CD W/F CD DANSKE CD DANSKE CP NCAT CP NCAT CP SAFEWAY CP HOUSEHOLD CP HOUSEHOLD CP JP MORGAN CP JP MORGAN CP FMCC CP BEAR CP GECC CP GECC CP GECC CP GECC 09/15/03 PURCHASES c/ DISC NOTES FHLB DISC NOTES FHLB DISC NOTES FHLB 09/16/03 REDEMPTIONS CP NCAT CP NCAT CP SAFEWAY CP HOUSEHOLD CP HOUSEHOLD 09/15/03 1.020 50,000 31 43,916.67 1.035 09/15/03 1.020 50,000 31 43,916.67 1.035 2.000% 05/15/06 0.550 50,000 31 (23,473.35) -0.559 2.000% 05/15/06 0.550 50,000 31 (23,473.35) -0.559 2.000% 05/15/06 0.550 50,000 31 (23,473.35) -0.559 2.000% 05/15/06 0.550 50,000 31 (23,473.35) -0.559 1.040% 09/30/03 1.060 50,000 1.040% 09/30/03 1.060 50,000 1.040% 09/30/03 1.060 50,000 1.040% 09/30/03 1.060 50,000 1.060% 10/15/03 1.060 50,000 1.060% 10/15/03 1.060 50,000 1.060% 10/20/03 1.060 50,000 1.060% 10/20/03 1.060 50,000 1.050% 10/29/03 1.050 50,000 1.050% 10/29/03 1.050 50,000 09/16/03 1.120 25,000 09/16/03 1.120 50,000 09/16/03 1.150 45,000 09/16/03 1.110 50,000 09/16/03 1.110 50,000 10/01 /03 1.050 50,000 10/01/03 1.050 50,000 10/21 /03 1.240 40,000 11/10/03 1.050 40,000 11/24/03 1.060 50,000 11/24/03 1.060 50,000 11/24/03 1.060 50,000 11/24/03 1.060 50,000 10/10/03 1.160 50,000 10/10/03 1.160 50,000 10/10/03 1.160 2,191 09/16/03 1.120 25,000 1 777.78 1.136 09/16/03 1.120 50,000 1 1,555.56 1.136 09/16/03 1.150 45,000 1 1,437.50 1.166 09/16/03 1.110 50,000 1 1,541.67 1.113 09/16/03 1.110 50,000 1 1,541.67 1.113 N. 09/16/03 SALES c/ DISC NOTES FHLB DISC NOTES FHLB DISC NOTES FHLB 09/16/03 PURCHASES CD MONTREAL. CD MONTREAL CD W/F CD W/F CP PREFCO CP PREFCO CP PREFCO CP PREFCO CP PREFCO CP CITICORP CP CITICORP CP CITICORP 09/17/03 NO REDEMPTIONS 09/17/03 PURCHASES CD WASHINGTON CD WASHINGTON CD CIBC CD CIBC CP TEXT FIN CP 'CITIGLOBAL CP CITIGLOBAL DISC NOTES FHLMC 09/18/03 NO REDEMPTIONS 09/18/03 PURCHASES CP CITIGLOBAL CP CITIGLOBAL 09/19/03 NO REDEMPTIONS 09/19/03 PURCHASES CP PREFCO CP CITICORP CP GMAC 09/22/03 REDEMPTIONS DISC NOTES FHLMC 10/10/03 1.160 2,191 1 69.08 1.179 10/10/03 1.160 50,000 1 1,576.57 1.179 10/10/03 1.160 50,000 1 1,576.57 1.179 1.040% 10/27/03 1.040 50,000 1.040% 10/27/03 1.040 50,000 1.060% 10/31/03 1.060 50,000 1.060% 10/31/03 1.060 50,000 10/14/03 1.050 5,000 10/14/03 1.050 50,000 10/14/03 1.050 50,000 10/20/03 1.050 45,000 10/20/03 1.050 50,000 10/29/03 1.050 50,000 10/29/03 1.050 50,000 10/29/03 1.050 50,000 1.100% 12/08/03 1.100 50,000 1.080% 12/22/03 1.100 34,600 1.080% 02/27/04 1.080 50,000 1.080% 02/27/04 1.080 50,000 09/26/03 1.090 25,000 11/24/03 1.060 50,000 11/24/03 1.060 50,000 02/18/04 1.080 40,846 12/02/03 1.060 50,000 12/02/03 1.060 50,000 10/03/03 1.030 25,025 10/03/03 1.040 30,000 11/10/03 1.280 20,000 09/22/03 0.950 50,000 98 129,305.56 0.965 9 09/22/03 REDEMPTIONS (continued) DISC NOTES FHLMC 09/22/03 PURCHASES CP HOUSEHOLD CP HOUSEHOLD CP NCAT CP NCAT CP NCAT CP NCAT CP NCAT CP NCAT CP PREFCO CP GE CO CP GE CO CP GE CO CP GE CO 09/23/03 REDEMPTIONS CP HOUSEHOLD CP HOUSEHOLD CP NCAT CP NCAT CP NCAT CP NCAT CP NCAT CP NCAT 09/23/03 PURCHASES CD LLOYDS CD LLOYDS CD STNRD CH CD SVENSKA CD SVENSKA CD SVENSKA CD SVENSKA CD MONTREAL CD MONTREAL CD MONTREAL CD MONTREAL CP GECC CP GECC 09/24/03 NO REDEMPTIONS 09/24/03 PURCHASES CD W/F 09/22/03 0.950 50,000 98 129,305.56 09/23/03 0.980 50,000 09/23/03 0.980 50,000 09/23/03 0.980 . 10,000 09/23/03 0.980 50,000 09/23/03 0.980 50,000 09/23/03 0.980 50,000 09/23/03 0.980 50,000 09/23/03 0.980 50,000 09/26/03 1.020 22,448 09/26/03 0.930 18,000 09/26/03 0.930 50,000 09/26/03 0.930 50,000 09/26/03 0.930 50,000 0.965 09/23/03 0.980 50,000 1 1,361.11 0.994 09/23/03 0.980 50,000 1 1,361,11 0.994 09/23/03 0.980 10,000 1 272.22 0.994 09/23/03 0.980 50,000 1 1,361.11 0.994 09/23/03 0.980 50,000 1 1,361.11 0.994 09/23/03 0.980 50,000 1 1,361,11 0.994 09/23/03 0.980 50,000 1 1,361.11 0.994 09/23/03 0.980 50,000 1 1,361.11 0.994 1.080% 02/27/04 1.080 50,000 1.080% 02/27/04 1.080 50,000 1.080% 02/27/04 1.080 50,000 1.090% 02/27/04 1.090 50,000 1.090% 02/27/04 1.090 50,000 1.090% 02/27/04 1.090 50,000 1.090% 02/27/04 1.090 50,000 1.080% 02/27/04 1.080 50,000 1.080% 02/27/04 1.080 50,000 1.080% 02/27/04 1.080 50,000 1.080% 02/27/04 1.080 50,000 02/27/04 1.090 50,000 02/27/04 1.090 50,000 1.070% 10/06/03 1.060 40,000 10 09/24/03 PURCHASES (continued) CD FORTIS 1.080% 02/18/04 1.080 50,000 CD FORTIS 1.080% 02/18/04 1.080 50,000 CD FORTIS 1.080% 02/23/04 1.080 50,000 CD FORTIS 1.080% 02/23/04 1.080 50,000 CD BK SCOT 1.080% 02/27/04 1.080 50,000 CD BK SCOT 1.080% 02/27/04 1.080 50,000 CP ASCC 10/02/03 1.060 50,000 CP CITIGLOBAL 12/02/03 1.060 50,000 CP CITIGLOBAL 12/02/03 1.060 50,000 CP CITIGLOBAL 12/08/03 1.060 50,000 CP CITIGLOBAL 12/08/03 1.060 50,000 CP HOUSEHOLD 01/28/04 1.100 20,000 CP HOUSEHOLD 01/28/04 1.100 50,000 CP NCAT 01/28/04 1.080 40,000 CP NCAT 01/28/04 1.080 50,000 CP HOUSEHOLD 02/18/04 1.100 50,000 CP HOUSEHOLD 02/18/04 1.100 50,000 DISC NOTES FHLMC 02/02/04 1.080 50,000 DISC NOTES FHLMC 02/02/04 1.080 50,000 DISC NOTES FNMA 02/18/04 1.060 50,000 DISC NOTES FNMA 02/18/04 1.060 50,000 DISC NOTES FHLMC 02/27/04 1.080 50,000 09/26/03 REDEMPTIONS CP SRAC 09/25/03 1.250 50,000 58 100,694.44 1.269 TREAS BILLS 09/25/03 1.165 50,000 163 263,743.05 1.187 TREAS BILLS 09/25/03 1.165 50,000 163 263,743.05 1.187 TREAS BILLS 09/25/03 1.165 50,000 163 263,743.00 1.187 TREAS BILLS 09/25/03 1.165 50,000 163 263,743.00 1.187 09/25/03 PURCHASES CP NCAT 09/26/03 1.020 30,000 CP NCAT 09/26/03 1.020 50,000 CP NCAT 09/26/03 1.020 50,000 CP SRAC 12/02/03 1.300 50,000 CP JP MORGAN 02/27/04 1.090 20,000 CP JP MORGAN 02/27/04 1.090 50,000 CP JP MORGAN 02/27/04 1.090 50,000 CP JP MORGAN 02/27/04 1.090 50,000 CD LLOYDS 1.080% 02/27/04 1.080 50,000 CD LLOYDS 1.080% 02/27/04 1.080 50,000 09/25/03 PURCHASES c/ TREAS NOTES 2.250% 07/31 /04 TREAS NOTES 2.250% 07/31/04 TREAS NOTES 6.750% 05/15/05 11 1.010 8,540 1.010 50,000 1.010 21,982 09/25/03 PURCHASES c1 (continued) . TREAS NOTES 6.750% 05/15/05 1.010 50,000 TREAS NOTES 6.750% 05/15/05 1.010 50,000 TREAS NOTES 6.750% 05/15/05 1.010 50,000 TREAS NOTES 6.750% 05/15/05 1.010 50,000 09/26/03 REDEMPTIONS CD W/F 1.050% 09/26/03 1.050 50,000 58 84,583.33 1.064 CD W/F 1.050% 09/26/03 1.050 50,000 58 84,583.33 1.064 CD W/F 1.050% 09/26/03 1.050 50,000 58 84,583.33 1.064 CD W/F 1.050% 09/26/03 1.050 50,000 58 84,583.33 1.064 CD W/F 1.050% 09/26/03 1.050 50,000 58 84,583.33 1.064 CD W/F 1.050% 09/26/03 1.050 50,000 58 84,583.33 1.064 CD WASHINGTON 1.040% 09/26/03 1.040 50,000 67 96,777.78 1.054 CD WASHINGTON 1.040% 09/26/03 1.040 50,000 67 96,777.78 1.054 CD TORONTO 0.910% 09/26/03 0.905 50,000 95 119,411.29 0.917 CD TORONTO 0.910% 09/26/03 0.905 50,000 95 119,4411.29 0.917 CD BNPARIS 0.900% 09/26/03 0.900 50,000 95 118,750.00 0.912 CD BNPARIS 0.900% 09/26/03 0.900 50,000 95 118,750.00 0.912 CD BK SCOT 0.910% 09/26/03 0.910 50,000 95 120,069.44 0.922 CD BK SCOT 0.910% 09/26/03 0.910 50,000 95 120,069.44 0.922 CD CR AGRIC 0.910% 09/26/03 0.910 50,000 95 120,069.44 0.922 CD CR AGRIC 0.910% 09/26/03 0.910 50,000 95 120,069.44 0.922 CD WASHINGTON 0.950% 09/26/03 0.950 50,000 98 129,305.56 0.963 CD WASHINGTON 0.950% 09/26/03 0.950 50,000 98 129,305.56 0.963 CD WASHINGTON 0.950% 09/26/03 0.950 50,000 98 129,305.56 0.963 CD B/A 0.990% 09/26/03 0.990 50,000 100, 137,500.00 1.003 CD B/A 0.990% 09/26/03 0.990 50,000 100 137,500.00 1.003 CD B/A 0.990% 09/26/03 0.990 50,000 100 137,500.00 1.003 CD B/A 0.990% 09/26/03 0.990 50,000 100 137,500.00 1.003 CD WASHINGTON 1.250% 09/26/03 1.250 50,000 156 270,833.33 1.267 CD WASHINGTON 1.250% 09/26/03 1.250 50,000 156 270,833.33 1.267 CD CIBC 1.240% 09/26/03 1.240 50,000 156 268,666.67 1.257 CD CIBC 1.240% 09/26/03 1.240 50,000 156 268,666.67 1.257 CD DEXIA 1.250% 09/26/03 1.245 50,000 158 273,214.30 1.262 CD DEXIA 1.250% 09/26/03 1.245 50,000 158 273,214.30 1.262 CD CIBC 1.250% 09/26/03 1.230 50,000 162 276,774.77 1.247 CD CIBC 1.250% 09/26/03 1.230 50,000 162 276,774.77 1.247 CP NCAT 09/26/03 1.020 30,000 1 850.00 1.037 CID NCAT 09/26/03 1.020 50,000 - 1 1,416.67 1.037 CID NCAT 09/26/03 1.020 50,000 1 1,416.67 1.037 CID PREFCO 09/26/03 1.020 22,448 4 2,544.11 1.034 CP GE CO 09/26/03 0.930 18,000 4 1,860.00 0.943 CID GE CO 09/26/03 0.930 50,000 4 5,166.67 0.943 CID GE CO 09/26/03 0.930 50,000 4 5,166.67 0.943 CID GE CO 09/26/03 0.930 50,000 4 5,166.67 0.943 CID TEXT FIN 09/26/03 1.090 25,000 9 6,812.50 1.105 CID GE CO 09/26/03 1.060 50,000 24 35,333.33 1.075 CID GE CO 09/26/03 1.060 50,000 24 35,333.33 1.075 CID COUNTRY 09/26/03 1.090 50,000 46 69,638.89 1.106 12 09/26/03 REDEMPTIONS (continued) CP COUNTRY 09/26/03 1.090 50,000 46 69,638.89 1.106 CP COUNTRY 09/26/03 1.090 50,000 46 69,638.89 1.106 CP COUNTRY 09/26/03 1.090 50,000 46 69,638.89 1.106 CP COUNTRY 09/26/03 1.090 50,000 46 69,638.89 1.106 CP FMCC 09/26/03 1.260 50,000 53 92,750.00 1.279 CP GMAC 09/26/03 1.250 50,000 59 102,430.56 1.269 CP GMAC 09/26/03 1.250 50,000 59 102,430.56 1.269 CP GE CO 09/26/03 1.030 50,000 72 103,000.00 1.046 CP GE CO 09/26/03 1.030 50,000 72 103,000.00 1.046 CP GE CO 09/26/03 1.030 50,000 72 103,000.00 1.046 CP GE CO 09/26/03 1.030 50,000 72 103,000.00 1.046 CP GE CO 09/26/03 1.030 50,000 72 103,000.00 1.046 CP FMCC 09/26/03 1.250 25,000 98 85,069.44 1.271 CP FMCC 09/26/03 1.250 50,000 98 170,138.89 1.271 CP GMAC 09/26/03 1.250 50,000 98 170,138.89 1.271 CP GMAC 09/26/03 1.250 50,000 98 170,138.89 1.271 CP BEAR 09/26/03 0.930 50,000 99 127,875.00 0.945 CP BEAR 09/26/03 0.930 50,000 99 127,875.00 0.945 CP BEAR 09/26/03 0.930 50,000 99 127,875.00 0.945 CP SAFEWAY 09/26/03 1.100 50,000 105 160,416.66 1.118 CP SRAC 09/26/03 1.600 50,000 147 326,666.67 1.632 DISC NOTES FHLB 09/26/03 1.035 44,025 58 73,411,69 1.051 DISC NOTES FHLB 09/26/03 1.035 50,000 58 83,375.00 1.051 DISC NOTES FHLB 09/26/03 1.035 50,000 58 83,375.00 1.051 DISC NOTES FHLB 09/26/03 1.035 50,000 58 83,375.00 1.051 09/26/03 SALES c/ TREAS NOTES 2.250% 07/31/04 1.010 8,540 1 238.05 1.027 TREAS NOTES 6.750% 05/15/05 1.010 21,982 1 671.79 1.027 TREAS NOTES 6.750% 05/15/05 1.010 50,000 1 1,528.19 1.027 TREAS NOTES 6.750% 05/15/05 1.010 50,000 1 1,528.19 1.027 TREAS NOTES 6.750% 05/15/05 1.010 50,000 1 1,528.19 1.027 TREAS NOTES 6.750% 05/15/05 1.010 50,000 1 1,528.19 1.027 TREAS NOTES 2.250% 07/31 /04 1.010 50,000 1 1,394.08 1.027 09/26/03 PURCHASES CD BK SCOT 1.090% 02/27/04 1.090 50,000 CD BK SCOT 1.090% 02/27/04. 1.090 50,000 CD SVENSKA 1.090% 02/27/04 1.090 50,000 CP SRAC 11/26/03 1.280 50,000 CP FMCC 12/02/03 1.290 50,000 CP FMCC 12/02/03 1.290 50,000 CP NCAT 02/27/04 1.090 4,000 CP NCAT 02/27/04 1.090 50,000 DISC NOTES FNMA 02/18/04 1.070 50,000 DISC NOTES FHLMC 02/18/04 1.070 50,000 DISC NOTES FHLMC 02/18/04 1.075 50,000 DISC NOTES FNMA 02/23/04 1.070 50,000 13 , 09/26/03 PURCHASES (continued) DISC NOTES FNMA 02/23/04 1.070 50,000 DISC NOTES FNMA 02/26/04 1.070 50,000 09/29/03 NO REDEMPTIONS 09/29/03 PURCHASES DISC NOTES FNMA 01/28/04 1.070 50,000 DISC NOTES FNMA 02/23/04 1.070 50,000 DISC NOTES FNMA 02/23/04 1.070 50,000 DISC NOTES FNMA 02/23/04 1.070 50,000 DISC NOTES FNMA 02/26/04 1.070 50,000 DISC NOTES FNMA 02/26/04 1.070 50,000 DISC NOTES FNMA 02/26/04 1.070 50,000 DISC NOTES FNMA 02/26/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 DISC NOTES FNMA 02/27/04 1.070 50,000 SBA FR 1.300% 09/25/28 1.300 18,684 SBA FR 1.300% 10/25/28 1.300 7,523 09/30/03 REDEMPTIONS BN WORLD 1.040% 09/30/03 1.060 50,000 15 22,083.15 1.075 BN WORLD 1.040% .09/30/03 1.060 50,000 15 22,083.15 1.075 BN WORLD 1.040% 09/30/03 1.060 50,000 15 22,083.15 1.075 BN WORLD 1.040% 09/30/03 1.060 50,000 15 22,083.15 1.075 BN WORLD 1.030% 09/30/03 1.050 20,000 22 12,833.18 1.064 BN WORLD 1.030% 09/30/03 1.050 50,000 22 32,082.94 1.064 BN WORLD 1.120% 09/30/03 1.120 50,000 117 182,005.50 1.135 BN WORLD 1.120% 09/30/03 1.120 50,000 117 182,005.50 1.135 CD ANZ 1.050% 09/30/03 1.050 50,000 42 61,250.00 1.064 CD ANZ 1.050% 09/30/03 1.050 50,000 42 61,250.00 1.064 CD ANZ 1.050% 09/30/03 1.050 50,000 42 61,250.00 1.064 CD ANZ 1.050% 09/30/03 1.050 50,000 42 61,250.00 1.064 CD CR AGRIC 0.910% 09/30/03 0.910 25,000 99 62,562.50 0.922 CD CR AGRIC 0.910% 09/30/03 0.910 50,000 99 125,125.00 0.922 CD LLOYDS 1.220% 09/30/03 1.220 50,000 154 260,944.44 1.237 CD LLOYDS 1.220% 09/30/03 1.220 50,000 154 260,944.44 1.237 CID GECC 09/30/03 1.020 50,000 95 134,583.33 1.036 TREAS NOTES 2.750% 09/30/03 3.029 50,000 651 2,693,767.17 3.029 09/30/03 PURCHASES BN BANC ONE 1.060% 02/27/04 CD MONTREAL 1.080% 01/02/04 CD MONTREAL 1.080% 01 /02/04 14 1.060 50,000 1.080 50,000 1.080 50,000 09/30/03 PURCHASES (continued) CD MONTREAL 1.080% 01/02/04 1.080 50,000 CD MONTREAL 1.080% 01/02/04 1.080 50,000 CD W/F 1.060% 01/02/04 1.060 50,000 CD W/F 1.060% 01/02/04 1.060 50,000 CD W/F 1.060% 01/02/04 1.060 50,000 CD W/F 1.060% 01/02/04 1.060 50,000 CD BK SCOT 1.070% 02/26/04 1.070 50,000 CD BK SCOT 1.070% 02/26/04 1.070 50,000 CD CR AGRIC 1.080% 02/27/04 1.080 50,000 CD CR AGRIC 1.080% 02/27/04 1.080 50,000 CD CR AGRIC 1.080% 02/27/04 1.080 50,000 W CR AGRIC 1.080% 02/27/04 1.080 50,000 CD BK SCOT 1.070% 02/27/04 1.070 50,000 CD BK SCOT 1.070% 02/27/04 1.070 50,000 CP GMAC 12/01/03 1.310 50,000 CP GMAC 12/01/03 1.310 50,000 CP CITI GLOBAL 12/01/03 1.050 50,000 CP CITI GLOBAL 12/01/03 1.050 50,000 CP GMAC 12/02/03 1.310 50,000 CP CITI GLOBAL 12/02/03 1.050 50,000 CP CITI GLOBAL 12/02/03 1.050 50,000 CP GECC 02/11 /04 1.080 50,000 CP GECC 02/11/04 1.080 50,000 TREAS BILLS 03/25/04 0.990 50,000 TREAS BILLS 03/25/04 0.990 50,000 TREAS BILLS 03/25/04 0.990 50,000 TREAS BILLS 03/25/04 0.990 50,000 09/30/03 RRP TREAS NOTES 2.000% 05/15/06 0.550 50,000 42 (32,003.12) -0.557 TREAS NOTES 2.000% 05/15/06 0.550 50,000 42 (32,003.12) -0.557 TREAS NOTES 2.000% 05/15/06 0.550 50,000 42 (32,003.12) -0.557 TREAS NOTES 2.000% 05/15/06 0.550 50,000 42 (32,003.12) -0.557 15 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. cqL/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. a, Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 16 NAME ALHAMBRA Bank of East Asia (USA) Bank of East Asia (USA) Bank of East Asia (USA) Omni Bank Omni Bank Omni Bank Omni Bank Omni Bank Omni Bank ARROYO GRANDE Mid -State Bank Mid -State Bank Mid -State Bank Mid -State Bank Mid -State Bank Mid -State Bank BREA Jackson Federal Bank Pacific Western National Bank CALABASAS First Bank of Beverly Hills FSB First Bank of Beverly Hills FSB First Bank of Beverly Hills FSB CAMARILLO First California Bank First California Bank First California Bank CAMERON PARK Western Sierra National Bank Western Siena National Bank CHICO Tri Counties Bank CITY OF INDUSTRY EverTrust Bank EverTrust Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 05/13/03 1.180 6,000,000.00 11/19/03 07/16/03 1.000 3,095,000,00 01/14/04 08/14/03 1.090 3,000,000.00 02/11/04 04/23/03 1.250 2,000,000.00 10/23/03 05/21/03 1.080 2,000,000.00 11/20/03 09/05/03 1.030 3,000,000.00 12/04/03 08/28/03 1.050 3,000,000.00 12/04/03 08/20/03 1.090 2,000,000.00 02/19/04 09/19/03 1.060 2,000,000.00 03/17/04 04/14/03 1.180 5,000,000.00 10/15/03 05/13/03 1.180 5,000,000.00 11/19/03 06/13/03 0.960 5,000,000.00 12/12/03 07/17/03 1.000 5,000,000.00 01/15/04 08/14/03 1.090 5,000,000.00 02/11/04 09/12/03 1.070 5,000,000.00 03/12/04 08/20/03 1.000 10,000,000.00 11 /20/03 08/08/03 1.080 4,000,000.00 02/04/04 06/20/03 0.950 10,000,000.00 12/17/03 08/07/03 1.100 10, 000, 000.00 02/05/04 09/04/03 1.120 10,000,000.00 03/04/04 06/04/03 1.140 2,000,000.00 12/05/03 07/30/03 1.060 4,000,000.00 01/28/04 09/24/03 1.090 6,000,000,00 03/24/04 07/16/03 0.980 7,000,000.00 01/14/04 08/15/03 1.070 6,000,000,00 02/11/04 09/17/03 1.020 20,000,000.00 12/18/03 06/12/03 0.980 6,000,000.00 12/11/03 07/31/03 1.050 6,000,000.00 01/29/04 17 NAME DUBLIN Operating Engineers FCU Operating Engineers FCU Operating Engineers FCU EL CENTRO Valley Independent Bank Valley Independent Bank Valley Independent Bank EL SEGUNDO First Coastal Bank NA First Coastal Bank NA Hawthorne Savings FSB Hawthorne Savings FSB Hawthorne Savings FSB Hawthorne Savings FSB Hawthorne Savings FSB Xerox Federal Credit Union Xerox Federal Credit Union Xerox Federal Credit Union FAIRFIELD Westamerica Bank Westamerica Bank Westamerica Bank FRESNO United Security Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($j DATE 04/08/03 1.130 5,000,000.00 10/08/03 06/13/03 0.940 10,000,000.00 12/12/03 08/14/03 1.070 5,000,000.00 02/11/04 09/17/03 0.980 20,000,000.00 10/17/03 09/19/03 0.960 32,500,000.00 10/17/03 09/23/03 1.030 20,000,000.00 01/07/04 07/24/03 0.970 2,000,000.00 10/22/03 08/29/03 1.060 2,000,000.00 12/04/03 07/09/03 0.910 60,000,000.00 10/08/03 04/16/03 1.250 35,000,000.00 10/16/03 05/14/03 1.180 25,000,000,00 11/20/03 09/24/03 0.990 50, 000, 000.00 01 /07/04 08/07/03 1.090 15,000,000.00 02/05/04 05/16/03 1.150 20,000,000.00 11/20/03 09/04/03 1.110 20,000,000.00 03/04/04 09/08/03 1.090 7,000,000.00 03/10/04 07/10/03 0.930 60,000,000.00 10/10/03 07/23/03 0.930 50,000,000.00 10/22/03 08/01/03 0.980 65,000,000.00 10/30/03 09/17/03 1.030 40,000,000.00 12/18/03 18 NAME FULLERTON Fullerton Community Bank Fullerton Community Bank GLENDALE Verdugo Banking Company Verdugo Banking Company GOLETA Pacific Capital Bank Pacific Capital Bank Pacific Capital Bank Pacific Capital Bank Pacific Capital Bank Pacific Capital Bank GRANADA HILLS First State Bank of California First State Bank of California IRVINE Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank LA JOLLA Silvergate Bank LAKEPORT Lake Community Bank LODI Bank of Lodi Farmers & Merchant Bk Cen CA TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($j DATE 05/13/03 1.190 9,000,000,00 11/19/03 07/25/03 1.020 8,000,000.00 01/23/04 07/10/03 0.920 5,000,000.00 10/01/03 04/02/03 1.190 5,000,000.00 10/01/03 04/29/03 1.210 10,000,000.00 10/01/03 04/02/03 1.170 20,000,000.00 10/01/03 06/09/03 1.050 85,000,000.00 12/10/03 08/15/03 1.070 16,000,000.00 02/13/04 07/25/03 0.990 45,000,000.00 02/13/04 09/17/03 1.050 25,000,000.00 04/01/04 04/23/03 1.250 3,000,000.00 10/23/03 09/19/03 1.040 2,000,000.00 03/19/04 04/29/03 1.200 20,000,000.00 10/31/03 05/20/03 1.100 20, 000, 000.00 11 /20/03 06/18/03 0.880 10,000,000.00 12/17/03 07/24/03 0.990 4,000,000.00 01/08/04 07/10/03 0.990 6,000,000.00 01/08/04 08/20/03 1.070 15,000,000.00 02/19/04 08/28/03 1.090 14,000,000.00 02/26/04 09/12/03 1.080 5,000,000.00 03/12/04 07/16/04 1.000 2,000,000.00 01/14/04 09/23/03 1.090 5,000,000.00 03/24/04 04/11 /03 1.180 10,000,000.00 10/10/03 19 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE LOS ANGELES Broadway Federal Bank 07/11/03 1.020 2,500,000.00 01/09/04 Broadway Federal Bank 09/11/03 1.080 3,000,000.00 03/12/04 California Chohung Bank 04/14/03 1.160 3,300,000.00 10/15/03 Cathay Bank 04/07/03 1.140 19,000,000.00 10/08/03 Cathay Bank 05/13/03 1.180 15,000,000.00 11/19/03 Cathay Bank 08/27/03 1.030 17,000,000.00 12/03/03 Cathay Bank 09/11/03 1.000 30,000,000.00 12/11/03 Cathay Bank 09/24/03 0.990 19,000,000.00 01/07/04 Cedars Bank 04/03/03 1.150 5,000,000.00 10/03/03 Cedars Bank 04/22/03 1.240 4,000,000.00 10/22/03 Cedars Bank 08/21/03 1.090 2,000,000.00 02/20/04 Cedars Bank 09/11/03 1.080 4,500,000.00 03/12/04 Center Bank 07/09/03 0.910 10,000,000.00 10/08/03 Center Bank 09/18/03 1.060 40,000,000.00 03/17/04 CHB America Bank 08/21/03 0.990 4,000,000.00 11/21/03 CHB America Bank 09/05/03 1.010 3,000,000.00 12/04/03 CHB America Bank 07/17/03 0.980 1,000,000.00 01/15/04 CHB America Bank 09/05/03 1.090 2,000,000.00 03/05/04 CHB America Bank 09/29/03 1.050 3,000,000.00 03/31/04 Eastern International Bank 05/06/03 1.160 900,000.00 11/05/03 Eastern International Bank 06/12/03 0.980 1,000,000.00 12/11/03 Hanmi Bank 07/18/03 0.950 25,000,000,00 10/17/03 Hanmi Bank 08/18/03 1.000 5,000,000.00 11/05/03 Hanmi Bank 08/07/03 1.000 20,000,000.00 11/05/03 Hanmi Bank 09/05/03 1.110 25,000,000.00 03/05/04 Hanmi Bank 09/18/03 1.070 25,000,000.00 03/17/04 Mellon First Business Bank 07/10/03 0.920 50,000,000.00 10/09/03 Mellon First Business Bank 09/18/03 1.000 50,000,000.00 12/18/03 Nara Bank, NA 07/08/03 0.930 5,000,000.00 10/08/03 Nara Bank, NA 04/23/03 1.250 20,000,000.00 10/23/03 Nara Bank, NA 08/08/03 1.080 10,000,000.00 02/04/04 Nara Bank, NA 09/11/03 1.080 10,000,000.00 03/12/04 One United Bank 09/17/03 0.980 10,000,000.00 10/17/03 Pacific Union Bank 07/10/03 1.010 10,000,000.00 01/08/04 Pacific Union Bank 09/04/03 1.110 20,000,000.00 03/04/04 Preferred Bank 08/08/03 1.090 4,000,000.00 02/06/04 Preferred Bank 09/19/03 1.070 31,000,000.00 03/19/04 Sae Han Bank 08/22/03 1.000 6,000,000.00 11/21/03 State Bank of India (California) 07/11/03 0.970 3,000,000.00 10/01/03 Western Federal Credit Union 04/23/03 1.230 30,000,000.00 10/23/03 Wilshire State Bank 04/23/03 1.250 4,000,000.00 10/23/03 Wilshire State Bank 08/14/03 0.990 2,000,000.00 11/14/03 Wilshire State Bank 05/13/03 1.180 2,000,000.00 11/14/03 20 NAME LOS ANGELES (continued Wiishire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank MERCED County Bank County Bank County Bank County Bank MODESTO Valley First Credit Union 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 OAKLAND Metropolitian Bank Metropolitian Bank Metropolitian Bank Metropolitian Bank Metropolitian Bank Metropolitian Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 05/06/03 1.180 4,000,000.00 11/14/03 06/19/03 0.940 2,000,000.00 12/17/03 05/29/03 1.130 5,000,000.00 12/17/03 07/10/02 1.010 7,000,000.00 01/08/04 08/07/03 1.090 4,000,000.00 02/05/04 08/14/03 1.090 3,000,000.00 02/25/04 08/27/03 1.110 4,000,000.00 02/25/04 09/19/03 1.060 8,000,000.00 03/19/04 04/14/03 1.190 5,000,000.00 10/15/03 08/27/03 1.040 5,000,000.00 12/03/03 06/11 /03 1.060 10, 000, 000.00 12/10/03 07/17/03 1.010 5,000,000.00 01/15/04 04/10/03 1.200 4,000,000.00 10/10/03 04/01/03 1.210 3,000,000.00 10/01/03 07/09/03 1.000 3,000,000.00 01/07/04 04/16/03 1.250 5,000,000.00 10/16/03 08/14/03 0.990 20,000,000.00 11/13/03 04/16/03 1.250 2,500,000.00 10/16/03 09/18/03 1.000 3,500,000.00 12/18/03 04/28/03 1.200 1,000,000.00 10/29/03 05/28/03 1.100 1,000,000.00 12/04/03 07/25/03 0.990 1,000,000.00 01/23/04 08/28/03 1.090 1,000,000.00 02/26/04 09/24/03 1.080 1,000,000.00 03/24/04 09/24/03 1.080 1,000,000.00 03/24/04 21 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ONTARIO Citizens Business Bank 04/03/03 1.150 25,000,000.00 10/03/03 Citizens Business Bank 05/21/03 1.080 30,000,000.00 11/20/03 Citizens Business Bank 06/04/03 1.160 25,000,000.00 12/05/03 Citizens Business Bank 08/08/03 1.080 30,000,000.00 02/06/04 Citizens Business Bank 09/24/03 1.080 30,000,000.00 03/24/04 PALO ALTO Bank of Petaluma 08/20/03 1.090 3,500,000.00 02/19/04 Bank of Petaluma 09/10/03 1.090 12,000,000.00 03/11/04 Bank of Santa Clara 08/20/03 1.100 20,000,000.00 02/19/04 Bay Area Bank 04/28/03 1.230 5,000,000.00 10/29/03 Bay Bank of Commerce 04/28/03 1.220 5,000,000.00 10/29/03 Coast Commercial Bank 07/16/03 1.010 5,000,000.00 01/14/04 Coast Commercial Bank 08/20/03 1.100 20,000,000.00 02/19/04 Cupertino National Bank 04/30/03 1.230 35,000,000.00 10/29/03 Cupertino National Bank 05/22/03 1.100 20,000,000.00 11/21/03 Cupertino National Bank 07/16/03 1.000 10,000,000.00 01/14/04 Cupertino National Bank 09/10/03 1.080 10,000,000.00 03/11/04 Golden Gate Bank 05/22/03 1.100 9,000,000.00 11/21/03 Mid -Peninsula Bank 04/28/03 1.220 35,000,000.00 10/29/03 Mid -Peninsula Bank 08/20/03 1.090 5,000,000.00 02/19/04 Mid -Peninsula Bank 09/10/03 1.080 10,000,000.00 03/11/04 Mt. Diablo National Bank 09/10/03 1.090 10,000,000.00 03/11/04 Peninsula Bank of Commerce 08/20/03 1.090 15,000,000.00 02/19/04 San Jose National Bank 05/22/03 1.090 20,000,000.00 11/21/03 PALOS VERDES ESTATES Malaga Bank 05/13/03 1.160 8,000,000.00 11/19/03 Malaga Bank 06/25/03 0.870 4,000,000.00 12/17/03 Malaga Bank 08/22/03 1.060 2,000,000.00 02/20/04 PASADENA Community Bank 07/11/03 0.920 10,000,000.00 10/10/03 Community Bank 04/15/03 1.220 15,000,000.00 10/15/03 Community Bank 05/07/03 1.190 15,000,000.00 11/06/03 Community Bank 06/19/03 0.940 10,000,000.00 12/17/03 Community Bank 07/11/03 1.020 10,000,000.00 01/09/04 Community Bank 09/17/03 1.070 10,000,000.00 03/17/04 Wescom Credit Union 05/13/03 1.190 10,000,000.00 11/19/03 22 iTT',# 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 PLEASANTON Valley Community Bank POMONA PFF Bank and Trust PFF Bank and Trust PORTERVILLE Bank of the Sierra RANCHO SANTA FE La Jolla Bank, FSB La Jolla Bank, FSB La Jolla Bank, FSB La Jolla Bank, FSB REDDING North Valley Bank REDWOOD CITY Provident Central Credit Union ROCKLIN Five Star Bank Five Star Bank RICHMOND Mechanics Bank Mechanics Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 02/07/03 1.360 5,000,000.00 02/05/04 03/20/03 1.270 5,000,000.00 03/10/04 03/07/03 1.270 5,000,000.00 03/10/04 04/10/03 1.280 10,000,000.00 04/01/04 04/30103 1.310 5,000,000.00 04/30/04 06/10/03 1.100 20,000,000.00 06/04/04 09/19/03 1.030 6,000,000.00 12/19/03 06/11/03 1.050 20,000,000.00 12/10/03 08/29/03 1.110 8,000,000.00 02/27/04 04/23/03 1.260 10, 000, 000.00 10/23/03 05/21/03 1.070 25,000,000.00 11/20/03 06/04/03 1.150 10, 000, 000.00 12/05/03 08/08/03 1.060 25,000,000.00 02/04/04 09/04/03 1.090 10,000,000.00 03/04/04 06/13/03 0.960 3,000,000.00 12/12/03 04/29/03 1.190 20,000,000,00 10/31/03 04/01/03 1.190 2,000,000.00 10/01/03 07/30/03 1.020 2,000,000.00 01/28/04 10/ 15/02 1.580 10, 000, 000. 00 10/ 15/03 04/29/03 1.210 10, 000, 000.00 10/31 /03 23 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE RICHMOND (continued Mechanics Bank 11/07/02 1.510 10,000,000.00 11/07/03 Mechanics Bank 03/07/03 1.290 10,000,000.00 03/03/04 Mechanics Bank 04/01/03 1.320 10,000,000.00 04/01/04 Mechanics Bank 04/23/03 1.390 10,000,000.00 04/21/04 Mechanics Bank 06/12/03 1.090 10,000,000.00 06/09/04 Mechanics Bank 07/09/03 1.110 10,000,000.00 07/08/04 Mechanics Bank 08/08/03 1.370 10,000,000.00 08/04/04 Mechanics Bank 09/12/03 1.290 10,000,000.00 09/10/04 RIVERSIDE Provident Savings Bank 09/25/03 1.080 25,000,000.00 03/25/04 SACRAMENTO American River Bank 04/09/03 1.180 1,500,000.00 10/09/03 American River Bank 06/25/03 0.870 1,000,000,00 12/19/03 American River Bank 07/11/03 1.000 1,000,000.00 01/09/04 American River Bank 07/31/03 1.020 1,500,000.00 01/29/04 American River Bank 08/29/03 1.090 2,000,000.00 02/27/04 American River Bank 09/25/03 1.060 2,000,000.00 03/25/04 Bank of Sacramento 05/29/03 1.140 2,000,000.00 12/03/03 Bank of Sacramento 09/19/03 1.010 2,000,000.00 12/19/03 Bank of Sacramento 08/13/03 1.100 1,500,000.00 02/11/04 Merchants National Bank 04/15/03 1.200 2,000,000.00 10/15/03 Merchants National Bank 07/24/03 0.990 2,000,000.00 01/22/04 River City Bank 07/10/03 0.930 2,000,000.00 10/09/03 River City Bank 07/31/03 1.050 3,000,000.00 01/29/04 River City Bank 08/28/03 1.120 2,000,000.00 02/26/04 U.S. Bank 07/10/03 1.010 100,000,000.00 01/08/04 U.S. Bank 08/06/03 1.090 25,000,000.00 02/04/04 U.S. Bank 08/13/03 1.090 50,000,000.00 02/11/04 U.S. Bank 08/21/03 1.090 50,000,000.00 02/20/04 Union Bank of California 07/18/03 0.950 25,000,000.00 10/17/03 Union Bank of California 07/18/03 0.950 150,000,000.00 10/17/03 Union Bank of California 08/07/03 1.000 150,000,000.00 11/05/03 Union Bank of California 09/17/03 1.000 150,000,000.00 12/18/03 SAN BERNARDINO Business Bank of California 07/16/03 0.940 8,000,000.00 10/16/03 Business Bank of California 09/18/03 1.000 12,000,000.00 12/18/03 Business Bank of California 08/06/03 1.100 10,000,000.00 02/04/04 24 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN DIEGO First Future Credit Union 05/29/03 1.130 5,000,000.00 12/03/03 First Future Credit Union 06/04/03 1.130 10,000,000.00 12/03/03 First Future Credit Union 06/16/03 0.940 3,000,000.00 12/17/03 First Future Credit Union 08/29/03 1.110 5,000,000.00 02/27/04 First United Bank 07/18/03 0.960 2,000,000.00 10/17/03 First United Bank 08/15/03 1.100 1,000,000.00 02/13/04 Neighborhood National Bank 08/22/03 1.100 2,000,000.00 02/20/04 North Island Federal Credit Union 09/26/03 1.010 5,000,000.00 01/09/04 SAN FRANCISCO American California Bank 07/08/03 1.020 4,000,000.00 01/08/04 Bank of the West 07/09/03 0.910 134,000,000.00 10/08/03 Bank of the West 07/30/03 1.000 100,000,000.00 10/30/03 Bank of the West 08/22/03 1.000 .242,000,000.00 11/21/03 Bank of the West 06/20/03 0.930 82,000,000.00 12/17/03 Bank of the West 07/30/03 1.040 76,500,000,00 01/28/04 Citibank (West) FSB 07/03/03 1.000 150,000,000.00 01/08/04 Citibank (West) FSB 07/09/03 1.000 100,000,000.00 01/15/04 Citibank (West) FSB 07/23/03 1.020 100,000,000.00 01/22/04 Oceanic Bank 09/12/03 1.260 4,000,000.00 09/10/04 Trans Pacific National Bank 06/25/03 0.900 1,000,000.00 12/23/03 Trans Pacific National Bank 08/07/03 1.100 1,000,000.00 02/05/04 Trans Pacific National Bank 09/25/03 1.090 1,000,000.00 03/25/04 United Commercial Bank 04/08/03 1.150 40,000,000.00 10/08/03 United Commercial Bank 09/04/03 1.020 50,000,000.00 12/04/03 United Commercial Bank 06/04/03 1.160 25,000,000.00 12/05/03 United Commercial Bank 07/01/03 1.000 25,000,000,00 01/08/04 United Commercial Bank 07/11/03 1.020 30,000,000.00 01/08/04 United Commercial Bank 07/16/03 1.000 20,000,000.00 01/14/04 United Commercial Bank 07/25/03 1.010 30,000,000.00 01/14/04 United Commercial Bank 07/31/03 1.010 40,000,000.00 01/28/04 United Commercial Bank 08/28/03 1.110 20,000,000.00 02/26/04 United Commercial Bank 09/19/03 1.060 65,000,000.00 03/19/04 SANJOSE Comerica Bank of California 09/18/03 0.970 183,000,000.00 10/17/03 Comerica Bank of California 09/23/03 1.000 134,000,000.00 01/07/04 Heritage Bank of Commerce 08/15/03 1.100 2,000,000.00 02/11/04 Meriwest Credit Union 08/28/03 1.050 5,000,000.00 10/16/03 Meriwest Credit Union 07/18/03 0.980 5,000,000.00 10/17/03 Meriwest Credit Union 08/06/03 1.020 5,000,000.00 10/22/03 25 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN JOSE (continued) Meriwest Credit Union 09/18/03 1.090 5,000,000.00 03/17/04 San Jose National Bank 04/30/03 1-.220 20,000,000.00 10/29/03 Santa Clara Co. Fed. C.U. 05/07/03 1.200 5,000,000.00 11/06/03 Santa Clara Co. Fed. C.U. 08/08/03 1.100 10,000,000.00 02/06/04 SAN LUIS OBISPO First Bank Of San Luis Obispo 05/30/03 1.130 4,500,000.00 12/05/03 First Bank Of San Luis Obispo 08/14/03 1.100 6,000,000.00 02/11/04 First Bank Of San Luis Obispo 09/17/03 1.080 7,000,000.00 03/17/04 First Bank Of San Luis Obispo 09/26/03 1.080 5,000,000.00 03/26/04 Mission Community Bank 04/08/03 1.150 2,500,000.00 10/08/03 Mission Community Bank 06/12/03 1.070 1,000,000.00 12/11/03 Mission Community Bank 09/04/03 1.120 1,000,000.00 03/04/04 San Luis Trust Bank 07/23/03 0.930 1,000,000.00 10/22/03 San Luis Trust Bank 09/10/03 1.060 1,500,000.00 03/11/04 SAN MARINO East West Federal Bank 05/15/03 1.170 38,000,000.00 11/20/03 East West Federal Bank 07/11/03 1.020 42,000,000.00 01/09/04 East West Federal Bank 08/08/03 1.080 35,000,000.00 02/06/04 East West Federal Bank 09/12/03 1.070 35,000,000.00 03/12/04 SANTA MARIA Hacienda Bank 09/10/03 1.010 1,000,000.00 12/10/03 SANTA ROSA National Bank of the Redwoods 08/13/03 1.090 5,000,000.00 02/11/04 National Bank of the Redwoods 04/29/03 1.190 5,000,000.00 10/31/03 National Bank of the Redwoods 07/24/03 1.010 10,000,000.00 01/22/04 North Coast Bank 06/19/03 0.950 1,250,000.00 12/16/03 North Coast Bank 09/19/03 1.070 1,250,000.00 03/19/04 SONORA Central California Bank 09/26/03 1.070 5,000,000.00 03/26/04 STOCKTON Pacific State Bank 04/09/03 1.210 1,000,000.00 10/09/03 Pacific State Bank 07/10/03 1.010 1,000,000.00 01/08/04 26 TIME DEPOSITS DEPOSIT PAR NAME DATE YIELD AMOUNT ($) STOCKTON (continued Union Safe Deposit Bank 04/15/03 Union Safe Deposit Bank 05/07/03 Union Safe Deposit Bank 06/13/0.3 Union Safe Deposit Bank 07/25/03 Union Safe Deposit Bank 08/15/03 Union Safe Deposit Bank 09/05/03 Washington Mutual Bank 06/18/03 Washington Mutual Bank 07/24/03 Washington Mutual Bank 08/21/03 TORRANCE China Trust Bank (USA) 07/23/03 China Trust Bank (USA) 08/13/03 China Trust Bank (USA) 09/12/03 TRACY Service 1st Bank 09/18/03 TUSTIN Sunwest Bank 09/11/03 Sunwest Bank 07/18/03 Sunwest Bank 08/14/03 VACAVILLE Travis Credit Union 08/28/03 WATSONVILLE Monterey Bay Bank 04/10/03 WHITTIER Quaker City Bank 04/02/03 Quaker City Bank 06/04/03 Quaker City Bank 07/16/03 TOTAL TIME DEPOSITS SEPTEMBER 2003 27 1.230 10,000,000.00 1.200 15,000,000.00 0.970 10,000,000.00 1.020 15,000,000.00 1.100 15,000,000.00 1.120 15,000,000.00 0.900 45,000,000.00 1.020 75,000,000.00 1.100 60,000,000.00 0.950 30,000,000.00 1.000 20,000,000.00 1.07 35,000,000.00 MATURITY DATE 10/15/03 11 /06/03 12/12/03 01 /23/04 02/13/04 03/05/04 12/17/03 01 /22/04 02/20/04 10/22/03 11/13/03 03/12/04 1.070 4,000,000.00 03/17/04 0.980 1,000,000.00 12/11/03 0.990 6,000,000.00 01/16/04 1.070 7,800,000.00 02/11/04 1.030 40, 000, 000, 00 12/04/03 1.190 3,000,000.00 10/10/03 1.170 16, 000, 000.00 10/01 /03 1.140 25,000,000.00 12/05/03 0.980 24,000,000.00 01/14/04 5,694,095,000.00 BANK DEMAND DEPOSITS SEPTEMBER 2003 ($ in thousands) DAILY BALANCES DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ 1,369,880 2,468,738 2 1,266,166 2,000,179 3 1,310,232 1,786,329 4 1,085,310 1,882,974 5 1,101,761 2,020,463 6 1,101,761 2,020,463 7 1,101,761 2,020,463 8 1,414,454 1,983,744 9 1,102,441 1,613,265 10 1,157,296 1,503,097 11 1,434,981 1,646,118 12 1,285,692 1,869,880 13 1,285,692 1,869,880 14 1,285,692 1,869,880 15 1,280,303 1,453,142 16 1,403,007 1,691,968 17 1,205,668 1,670,316 18 1,312,096 2,096,778 19 1,744,971 2,273,615 20 1,744,971 2,273,615 21 1,744,971 2,273,615 22 1,456,273 2,060,981 23 1,618,009 1,995,950 24 1,329,824 1,907,811 25 1,310,899 1,919,055 26 1,000,650 1,640,791 27 1,000,650 1,640,791 28 1,000,650 1,640,791 29 903,635 1,993,166 30 1,961,321 1,923,972 a/ AVERAGE DOLLAR DAYS $ 1,310,700 — a/ The prescribed bank balance for September was $1,322,615. This consisted of $1,173,600 in compensating balances for services, balances for uncollected funds of $166,252 and a deduction of $16,337 for September delayed deposit credit. 28 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1651 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on September 17, 2003, 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 $ 1,173,600,000 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: From To Transactions ( 1) 9/15/2003 9/19/2003 $ 2,567,800,000 (2) 9/22/2003 9/26/2003 $ 430,800,000 (3) 9/29/2003 10/3/2003 $ 456,000,000 (4) 10/6/2003 10/10/2003 $ 402,300,000 (5) 10/13/2003 10/17/2003 $ 769,900,000 Time Deposits in Various Financial Institutions In Securities (sections 16503a Estimated (section 16430)* and 16602)* Total $ 48,028,405,000 $ 5,694,095,000 $ 53,722,500,000 $ 48,459,205,000 $ 5,694,095,000 $ 54,153,300,000 $ 48,915,205,000 $ 5,694,095,000 $ 54,609,300,000 $ 49,317,505,000 $ 5,694,095,000 $ 55,011,600,000 $ 50,087,405,000 $ 5,694,095,000 $ 55,781,500,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 1,173,600,000. Dated: September 17, 2003 * Government Code POOLED MONEY INVESTMENT BOARD: Signature on file at STO and SCO Chairperson Member Member CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report -- Year, ended June 30, 2003 { 11 Prepared by FINANCE DEPARTMENT - JOHN M. FALCONER Director of Finance (This page intentionally left blank) - CITY OF LA QUINTA -- Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS Page — INTRODUCTORY SECTION Letter of Transmittal i — List of Principal Officials xi Organizational Chart xii Certificate of Award for Outstanding Financial Reporting (CSMFO) xiii Certificate of Achievement for Excellence in Financial Reporting (GFOA) xiv 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 18 Statement of Activities 19 Fund Financial Statements: Governmental Funds: _ Balance Sheet 20 Reconciliation of the Balance Sheet of Governmental Funds — to the Statement of Net Assets 22 Statement of Revenues, Expenditures and Changes in Fund Balances 24 Reconciliation of the Statement of Revenues, Expenditures and Changes — in Fund Balances of Governmental Funds to the Statement of Activities 26 Proprietary Funds: — Statement of Net Assets 27 Statement of Revenues, Expenses and Changes in Net Assets 28 Statement of Cash Flows 29 Fiduciary Funds: Statement of Fiduciary Assets and Liabilities — Agency Funds 30 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION, (Continued) Notes to the Basic Financial Statements 31 REQUIRED SUPPLEMENTARY INFORMATION: Notes to Required Supplementary Information 67 Budgetary Comparison Schedules: General Fund 68 Low/Moderate Income Housing Project Area No. 2 Fund 70 SUPPLEMENTARY SCHEDULES: Non -Major Governmental Funds: Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 73 Non -Major Special Revenue Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 78 Budgetary Comparison Schedules: State Gas Tax Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 80 Federal Assistance Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 81 Lighting and Landscape Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 82 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION, (Continued) State Law Enforcement Block Grant (SLESF): -- Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 83 Quimby Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 84 — Public Safety Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 85 Arts in Public Place Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 86 South Coast Air Quality Fund: Schedule of Revenues, Expenditures and Changes in Fund — Balances — Budget and Actual 87 Local Law Enforcement Block Grant (LLEBG): ,._ Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 88 Coachella Valley Violent Crime Task Force Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 89 Low/Moderate Income Housing Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 90 — Low/Moderate Bond — Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 91 Low/Moderate Bond — Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund .-_ Balances — Budget and Actual 92 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS, (Continued Page FINANCIAL SECTION, (Continued) 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 94 Redevelopment Agency Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 95 Redevelopment Agency Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 96 Major and Non -Major Capital Projects Funds: Budgetary Comparison Schedules: Combining Balance Sheet 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 100 Parks and Recreation Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 102 Capital Improvement Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 103 Redevelopment Agency Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 104 Infrastructure Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 105 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION, (Continued) Transportation Fund: -- Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 106 Civic Center Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 107 Library Development Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 108 County 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 111 Park Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 112 Fire Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 113 -- Assessment District 2001-1 Phase VI Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 114 Financing Authority Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund ._. Balances — Budget and Actual 115 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION, (Continued Redevelopment Agency Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 116 Internal Service Funds: Statement of Net Assets 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 119 Combining Statement of Cash Flows 120 Agency Funds: Combining Balance Sheet 122 Statement of Changes in Assets and Liabilities 124 Capital Assets Used in the Operation of Governmental Funds: Schedule by Source 128 Schedule by Function and Activity 129 Schedule of Changes by Function and Activity 130 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2003 TABLE OF CONTENTS, (Continued) Table No. Page STATISTICAL SECTION General Fund Expenditures by Function 1 132 General Fund Revenues by Source 2 133 Property Tax Levies and Collections 3 134 Schedule of Net Taxable Value 4 135 Property Tax Rates - Direct and Overlapping Governments 5 136 Special Assessment Billings and Collections 6 137 Schedule of Direct and Overlapping Bonded Debt 7 138 Computation of Legal Debt Margin 8 139 Revenue Bond Coverage 9 140 Demographic Statistics 10 141 Property Value, Construction Activity, and Bank Deposits 11 142 Principal Taxpayers 12 143 Major Employers 13 144 Schedule of Insurance in Force 14 145 Miscellaneous Statistical Data 15 146 General Fund Balance Trends 16 147 (This page intentionally left blank) P.O. Box 1504 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 November 18, 2003 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California (760) 777-7000 FAX (760) 777-7101 FY 2002-03 COMPREHENSIVE ANNUAL FINANCUL REPORT LETTER OF TRANSMITTAL We are pleased to present the 2003 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 Quints 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, 2003. 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. This is the third year of financial statement presentation under the financial and reporting requirements of Government Accounting Standards Board Pronouncement No. 34 — The New Financial Reporting Model. The City elected early implementation of the standards in Fiscal Year 2001. In its most elementary terms, the new model attempts to present the financial position and activities of a government organization on a basis comparable to a for -profit organization. 1 8c9 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, 2003 was 30,452, an increase of 98% from 1992. • Retail Sales of $290 million, a 498% increase from 1992; • Taxable Sales of $355 million, a 365% increase from 1992; • Assessed Valuation of $5.453 billion, a 190% increase from 1992; and, • Hotel Room sales over $37.8 million, a 105% increase from 1992. The City area includes the La Quinta Resort, several world class golf resorts, quality neighborhoods of single family and multi -dwelling homes, and light commercial industries. The City has a beautiful Senior Center, which borders the newly opened Civic Center Campus. The Desert Sands Unified School District and Coachella Valley Unified School District provide 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 2002, the population grew 5.99/. 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 2002-2003 is 76. In addition to the 30,450 permanent residents, approximately 12,0 00 seasonal residents spend three to six months in the City. La Quinta was recently named "the best place to live for golfing" by the Robb Report, and has been one of the fastest growing cities in Riverside County and California in recent years. -' 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 - Construction Cily Clerk - City Clerk Community Services - Administration - Recreation - Senior Center Communi Development - Administration - Planning - South Coast Air Quality - Redevelopment 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 2002-03 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 F,ctnte Building permits issued exceeded $173 million in valuation last year. La Quinta issued $1.5 billion worth of building permits during the last ten years, averaging over $150 million per year. Seven hundred eighty six new housing units were built in 2002, and La Quinta's growth continues to be faster than the average recorded in Riverside County and in the Coachella Valley. Major retail developments continue to diversify and enhance La Quinta's economic base. The Centre at La Quinta auto mall site includes three auto dealerships and can accommodate up to nine dealerships, plus 400,000 square feet of retail anchored by a Super Walmart under construction; Washington Park, slated for a Target currently under construction, Washington Mutual Bank, and Stein Mart; La Quinta Corporate Center, which contains a fitness center, offices, and a post office site; La Quinta Court, a specialty shopping center with fine restaurants and a gourmet food market; La Quinta Professional Plaza, under construction, which includes Palm Desert National Bank, professional offices and restaurants; Jefferson Plaza, anchored by Home Depot, I -Hop, and Jack in the Box; One Eleven Center, anchored by Wal Mart, Staples, Ross Dress 4 Less, and coming soon, a Big 5 Sporting goods store; Point Happy, anchored by two restaurants; and Old Town La Quinta, a 140,000 square foot commercial/retail center under construction in the Village area. Several resort -oriented projects which will expand the economic diversity of the City are planned or already approved, including an Embassy Suites hotel, a Marriott Residence Inn, and development of Centre Point, a 50-acre site at the corner of Miles Avenue and Washington Street which will include a mid -priced hotel, a boutique hotel, and a 165,000 square foot medical facility. A residential component is also part of the project, with a neighborhood park. Quality residential communities, including PGA West, Rancho La Quinta and the Traditions have increased the assessed valuation of the City, and several other large projects have been approved and are moving forward. Since 1992, assessed valuations have grown to $5.453 billion in 2002. In the last decade, assessed values have increase 190%, substantially higher than the region's average growth rate. iv Honorable Mayor, City Council, and City Manager Housin La Quinta has a wide spectrum of housing types and values, ranging from the affordable to exclusive luxury estates. The median home prices in La Quinta have been remained relatively stable with slight appreciation and are significantly lower than other areas, mostly due to the reasonably priced land values and available housing inventory. The median home price in La Quinta stands at approximately $190,000, which is lower than averages for San Diego and Los Angeles Counties and the State of California. Sales of new and existing homes in La Quinta continue to be amongst the highest volume in the Coachella Valley. New construction has brought the number of housing units available in the City to 15,940. The 15,940 units consist of 12,368 detached single family residences, 2360 attached single family residences, 953 multi -- family residences, and 259 mobile homes. Tourism La Quinta is well known for its many championship golf courses. The City is home to 21 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. La Quinta's Trilogy Golf Club will be hosting the internationally televised Skins Game in 2003 and 2004. The City acquired 525 acres of previously undeveloped property adjacent to Jefferson Street and Avenue 52. This project, Silver Rock Ranch, will include two 18-hole golf courses, hiking trails, residential casita units, as well as two or three hotels and commercial areas for retail and restaurants. 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, and has relocated to a new site along Washington Street. Hotel room sales in La Quinta enjoyed dramatic growth to a record $38 million in 2002. The La Quinta Hotel, the largest destination resort in the Coachella Valley, was the largest contributor to this increase. Capital Improvements The City completed almost $16 million in capital improvements during 02-03. Projects completed or nearing completion include the Civic Center Campus landscape, anchored on one corner by the Civic Center, another corner by the Senior Center and Community Facilities and a third corner dedicated to the planned City library; Jefferson Street Phase I widening; improvements or construction of a number of city parks, including Monticello, Cove mini -park, Cove Oasis and Cahuilla Trail, Fritz Burns Park Phase 2, and the 18 acre La Quinta Park, which includes lighted soccer fields. Several significant projects which are continuing, planned or already approved, include Civic Center expansion, Avenida La Fonda improvements, construction of the City's third fire station, and Jefferson Street widening Phase U. v Honorable Mayor, City Council, and City Manager The City's Capital Improvement Program (CIP) continues to increase to meet the demands of growth, and totals $45 million for 2003-2004. This major commitment in infrastructure will continue to provide for both the current and future growth that the City has experienced. The City has several significant community facility projects underway. A skateboard park and dog park have been completed and the 18 acre La Quinta Park is near completion. This park hosts a variety of community amenities, including lighted soccer fields, ball fields, a basketball court, a children's in service area and space for a future skateboard park. Development of the City's first municipal golf course, SilverRock Ranch, will significantly add to amenities available to residents of La Quinta. SilverRock Ranch is under design and expected to be open in 2005. City Operations The following is a partial listing of the accomplishments for the citizens of La Quinta for fiscal year 2002-2003: Continued development of GIS data base for city-wide planning, obtained aerial photos of City boundaries and planning areas, and developed enhanced mapping capabilities, including public safety analysis; Improved features on City web page, making the municipal code, maps and permit detail available to the general community; Implemented economic development marketing program to support local businesses; Applied for, and received, several grant awards for community projects to enhance public safety, environmental issues, and improved traffic systems; Implemented an improved Optical Imaging system for document storage and record retrieval, including scanning and indexing existing improvement plans into digital archives; 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; Initiated selection and implementation of new software, integrating financial records and departmental operations for improved efficiency and information retrieval; Continued expansion of recreation and Senior Center programs available for community education, leisure enrichment, and health; . Implemented special enforcement programs for improved public safety and neighborhood security; Began construction of City's third fire station and participated in emergency management training; Negotiated development agreements to provide for quality housing in several projects, including very low and low income seniors and low and moderate income family households; Continued implementation of the community Emergency Notification System, and improved the City's Emergency preparedness resources; Continued update of General Plan and Housing Element, and continued implementation of Design Standards for development and traffic. Future developments Future developments include: continued commercial development along the Highway III corridor and residential growth in the southern part of the City, redevelopment financed property development on Avenue 48, Eisenhower Street and Calle Tampico, and completion of senior residential projects. Additionally, construction of the City's third fire station, and development of the City's first municipal golf course will significantly add to vi Honorable Mayor, City Council, -- and City Manager the services offered to La Quinta residents. Construction of both a library and historic museum are in the planning stages. The City will continue coordination with commercial development, ensuring quality enhancements in both new and existing projects, and continue development of resort, hotel, and destination -' tourist opportunities. Financial Information GASB 34 requires a separate' 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 2002/03 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 a third one under construction in the north part of the City which is anticipated to be completed in January 2005. Additional personnel and paramedic services will continue to be needed. The need to fund additional landscaping costs — As a result of Proposition 218, the City has been limited on the use of City -Wide Lighting and Landscape Assessment District funding for the maintenance of landscaping in the City. The City has continued to add landscaped street medians and developed park facilities that will require additional funds for maintenance. 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, not supplant, the MD & A 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. Honorable Mayor, City Council, and City Manager 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 two Internal Service Funds 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. The City began implementation of new integrated financial accounting software, to improve reporting capabilities and enhance internal controls in all areas of financial records. Budgetary Controls - The City Manager submits a preliminary budget to the City Council before each fiscal year. A public meeting is 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. Honorable Mayor, City Council, and City Manager Gann Limit --AMropriations 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 j oined 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. Certificate of Award for Outstanding Financial Reportin 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 hope to continue to receive these awards. Honorable Mayor, City Council, and City Manager 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 mast Qf the twst14ns rported 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 frame work '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. Respectfully submitted, / l John M. Falconer Finance Director and Treasurer X City of La Quinta Directory of Officials June 30, 2003 CITY COUNCIL Don Adolph, Mayor Stanley Sniff, Mayor Pro Tem Terry Henderson, Council Member Lee Osborne, 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 Tim Jonasson, Public Works Director/City Engineer xi 4 C 5 l Z` a o E oa oc am � m m 3 >mm io m m c~•� � t A C c j W c C cEO�= cc ( cc Ea � as a Wm E o a m c0 U a. a 1 S i a f � c - - o d d 0 o U OD 3 3 { c O ar c0 0 c c 0 y c w V =—coo c m 0 V N m F� •`° t0 a 0 O W N G 0 G lE a s C.20 I ? 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IRVINE, CALIFORNIA 92612 (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 financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California as of and for the year ended June 30, 2003, which collectively comprise of the City's basic financial statements, as listed in the accompanying table of contents. These financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2003, and the respective changes in financial position and cash flows, where applicable, of the City of .— La Quinta, California and the respective budgetary comparison information for the general fund and major special revenue funds of the City for the year then ended in conformity with accounting principles generally accepted in the United States of America. 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 principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City of La Quinta's basic financial statements. The introductory section combining and individual nonmajor fund financial statements and statistical 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. The combining and individual nonmajor fund financial -- statements have been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have _ not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. -- 1 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION The Honorable Mayor and City Council City of La Quinta La Quinta, California In accordance with Government Auditing Standards, we have also issued a report dated August 14, 2003 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. August 14, 2003 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 Reuorting Model As mentioned in the prior year MDA, 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 continues to be 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. This year a major effort was needed to update the infrastructure reporting for additions and deletions during the year. 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 As was the case last year, the overall financial results of the City of La Quinta for FY 2002/03 were very good and our financial condition is the strongest since incorporation. Our financial results were stronger than the prior year despite lower interest income and higher costs and the City was generally able to see increases in its reserves. Offsetting our lower interest income and higher costs were increases in transient occupancy and sales tax collections, and a slight increase in permits and fees. In addition, with our higher population, we were able to collect more in State —' subventions; however, as mentioned earlier, the City incurred higher costs for servicing the larger population. As a fast growing municipality, the City of La Quinta has been able to add to its general reserves. The future challenge will be to ensure 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. 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 for FY 02/03: Description Modified Accrual Accrual Change Assets 152,533,216 488,643,410 336,110,194 Liabilities 46,875,421 174,497,075 127,621,654 Revenues 70,554,718 47,468,715 (23,086,003) Expenditures 70,192,981 45,980,015 (24,212,966) Fund Balance/Net Assets 105,657,795 314,146,335 2081,488,540 Revenues over (under) expenditures 361,737 1,488,700 1)126,963 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. 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. 4 Assets The following chart lists a condensed Statement of Net Assets for the fiscal year ending June 30, 2003 and 2002. Total net assets increased $1.5 million from the previous year. CITY OF LA QUINTA Statement of Net Assets Governmental Governmental Governmental Activities Activities Activities 2003 2002 Changes Current and other assets 129,398,242 123,522,074 5,876,168 Capital assets 359,245,168 361,734,987 (2,489,819) Total assets 488,643,410 485,257,061 3,386,349 Current and other liabilities 10,588,398 5,917,187 4,671,211 Long term liabilities 163,908,677 166,682,239 (2,773,562) Total liabilities 174,497,075 172,599,426 1,897,649 Net assets Investment in capital assets, net of related debt 225,818,022 234,923,191 (9,105,169) Restricted 40,0383,313 34,708,445 5,329,868 Unrestricted 48,290,000 43,025,999 5,264,001 Total net assets 314,146,335 312,657,635 1,488,700 "- Employees One major asset of the City of La Quints is its employees. While not quantified on the books, the City has 76 authorized full time equivalent positions to provide the services required by the community. 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 02/03, 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 02/03, 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: 5 Summary of FY 02/03 Interest Rates/Earnings Month 6 Month Benchmark (%) Average Maturity Days Pool Interest Rate (%) Fiscal Agent Interest Rate (%) Total Rate All Earnings (%) July 2002 1.73% 172 2.46% 1.00% 2.05% August 1.64% 123 2.45% 1.27% 2.07% September 1.62% 139 2.46% 1.26% 2.10% October 1.55% 121 2.41 % 1.00% 2.08% November 1.29% 109 2.32% 1.00% 2.02% December 1.27% 163 2.23% 1.00% 1.80% January 2003 1.16% 137 2.11% 0.80% 1.62% February 1.20% 131 1.99% 0.59% 1.74% March 1.18% 117 2.01 % 0.75% 1.78% April 1.17% 92 1.98% 0.72% 1.76% May 1.10% 74 1.86% 0.73% 1.54% June 2003 0.86% 123 1.73% 0.49% 1.40% Average FY 02/03 1.29% 125 2.10% 0.75% 1.73% Average FY 01 /02 2.29% 60 3.21 % 1.93% 2.71 % Ending Cash balances Interest Earnings June 2003 June 2002 $113,060,020 $106,751,100 $2,086,793 $4,354,718 During FY 02/03, interest rates dropped throughout the year across the yield curve. The Treasurer exceeded the benchmark 6 month Treasury Bill rate in 12 of the 12 twelve months and overall for the year by an average of 43 basis points. Interest earned on all funds totaled $1.4 million for FY 02/03 versus $1.9 million for FY 01/02 and the total portfolio at June 30, 2003 was $ 113.0 million versus $106.8 million for the previous year. 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 between 7 and 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 Redevelopment Project Agency to the Park and Recreation Development Impact Fee Fund has been made to accelerate Park development. During the fiscal year, the 1994 Educational Relief Augmentation Fund (ERAF) advance from the Low and Moderate Housing Project Area 2 to the Project Area 2 Debt Service Fund was repaid. The total outstanding balances between the General Fund and the Redevelopment Agency as of June 30, 2003 and 2002 are $21,081,322 and $13,810,753, respectively. The major increase included a $6 million advance to fund construction of a Library, street improvements on Ave La Fonda and street improvements along Eisenhower Drive. The total outstanding balances between the 6 Redevelopment Agency and the Capital Fund — Park & Recreation as of June 30, 2003 and 2002 are $4,921,720 and $1,249,728, respectively. The major increase included advances to fund construction of the La Quinta Park and the Civic Center Campus. 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. In some respects the years following the first year of implementing GASB 34 were harder than the first year. In the first year the City relied on a professional study to value the infrastructure. During FY 02/03, the City continued to track the addition and deletion of fixed assets. These additions and deletions took the form of developer contributions, and completed Capital Improvement Projects. 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 33% depreciated at year end compared to 31% in the previous year, Internal Service assets were 61 % depreciated compared to 57% last year and infrastructure improvements were 64% depreciated compared to 61 % in the prior year. The higher depreciation percentage _ indicates that the assets are older and will require accelerated future expenditures in the future to replace aging assets. In each case cited above, the depreciation percentage increased which indicates that the City infrastructure assets are aging faster than they are being replaced. The City has an two internal service funds — equipment replacement and information technology. The Equipment Replacement Fund is for the replacement of equipment and major capital items such as the roofs and air conditioners in the City Hall and Senior Center. The Information Technology fund is for the replacement of computers and related equipment and to charge departments for their fair share of computer related services. 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, artwork, 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 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 La Quinta Park. 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 2003 Accumulated Depreciated Type Life Total Depreciation Remaining Percent years Fixed Assets Land N/A $56,467,549 N/A $56,467,549 General Fixed Assets 5-30 17,015,511 5,669,405 11,346,106 33.32% Internal Service Fixed Assets 3-15 2,355,382 1,426,172 929,210 60.55% Total Fixed Assets 75,838,442 7,0951577 68,74205 Infrastructure Assets Right of Way (ROW) N/A 230,148,147 N/A 230,148,147 Art in Public Places N/A 1,472,958 N/A 1,472,958 Subtotal 231,621,105 N/A 231,621,105 Street Pavement 20-25 45,582,821 383398,502 7,184,319 Curbs/Gutters 50 7,316,410 2,683,405 4,633,005 Sidewalks 20 5,439,145 4,552,652 886,493 Median 50 5,318,736 1,556,083 3,762,653 Parking Medians 50 21,301 8,946 12,355 Bridges 35 9,933,145 2,075,917 7,857,228 Traffic Signals 20 4,083,647 1,427,334 2,656,313 Bike Paths 20 642,304 264,029 378,275 Sound Wall 20 74,200 11,130 63,070 Retention Basin 10 957,019 831,229 125,790 Storm Drains 50 2,028,035 310,580 1,717,455 Subtotal 81,396,763 52,119,807 29,276,956 64.03% Total Infrastructure Assets $313,017,868 $52,119,807 $260,898,061 Construction in Progress 29,604,242 Total Capital Assets, net $359,245,168 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. During the fiscal year, the City, Redevelopment Agency and the Financing Authority did not issue any new debt. This was not the case in the previous year when Redevelopment Agency (RDA) Project Area 1 issued $88 million of "AAA" insured Tax Allocation Bonds. At the RDA's request, they asked Standard and Poors to rate Project Area I on a stand-alone basis, which is without bond insurance, and are pleased that we have maintained our "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, 2003, the City of La Quinta has advanced the RDA Project Debt Service Area 1 $11,503,322 and Debt Service Project Area 2 $9,578,000. The advances carry an interest rate of between 7-10% 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, the Debt Service Area 2 fund has a negative fund balance of $ (6,182,506) as of June 30, 2003 compared to a fund deficit as of June 30, 2002 of $ (5,622,884). While it is preferable to have funds with positive balances, it should be noted that this negative balance was a result of the City advances. This advance has no specified re -payment date and it is not the intent of Management to request repayment of the advance 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. The La Quinta Redevelopment Agency has advanced funds to the Capital Project — Park and Recreation Fund to construct the Civic Center Campus and the La Quinta Park. The advances were made to accelerate the construction of these facilities which would have not been constructed to meet the growing needs of the community. The advances carry an interest rate that fluctuates with the average earnings of the investment pool and were $4,921,720 for FY 02/03 -- and $1,249,728 for FY 01 /02. This advance has no specified re -payment date. 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. 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. As previously discussed the RDA issued $88 million in bonds during FY 2002, however, no bonds were issued in FY 02/03. 9 The Statement of Net Assets has a long-term liability amount due within one year of $4,021,110 and an amount due in more than one year of $159,887,567 for FY 02/03, as compared to $3,312,895 due within one year and $163,369,344 from FY 01/02. 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 $48,290,000 as reported in the Statement of Net Assets. This is an increase of $5,264,001 from last year. As in the past, Management has elected, as detailed in the basic financial statements, 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 $314,146,335 of which $225,474,945 consists of capital assets, net of the related debt that was used in acquisition. $40,381,390 consists of restrictions placed upon special revenue, capital projects, and debt service funds leaving total unrestricted net assets of $48,290,000. The City has two internal service funds — Equipment Replacement and Information Technology Funds that primarily receive its revenues from charges for services from other City departments. Under the new reporting model, the assets and liabilities of these internal service funds 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. The following chart lists a condensed version of the Changes in Net Assets for the fiscal years ending June 30, 2003 and 2002. 10 CITY OF LA QUINTA -- Changes in Net Assets 2003 2002 Change Revenues Program revenues _ Charges for services 5,627,924 4,950,755 777,169 Operating grants and 11,797,031 1,699,255 97,776 contributions Capital grants 5,160,405 11,662,424 (6,502,019) General revenues Taxes 32,764,817 28,544,634 4,220,183 Investment income 1,353,868 1,867,744 (513,876) Motor Vehicle in lieu 1,768,091 1,473,217 294,874 Gain (loss) on sale of capital assets - (21,397) -- Other 513,876 692,691 (178,815) Total revenues 48,986,012 50,769,323 (1,804,708) Expenses -- General government 3,203,462 3,241,576 (38,114) Public safety 8,547,005 7,522,532 15024,473 Community services 1,321,825 1,411,943 (90,118) ,._. Planning and development 19,083,860 7,110,125 11,973,735 Public works 61785,759 6,434,239 351,520 Interest 8,555,401 6,653,406 1,901,995 _ Total expenses 47,497,312 323,373,821 15,123,491 Excess (deficiency) $ 1,488,700 18,395,502 (16,928,199) Net assets - 6/30/2001 294,262,133 Net assets - 6/30/2002 312,657,635 312,657)635 �.. Net assets - 6/30/2003 $ 314,146,335 The following graph depicts the revenue by source for governmental activities for FY 02/03 which totaled $48,986,012. Revenues by Source -Governmental Activities 25,000,000 20, 000,000 15, 000, 000 10,000,000 5,000,000 N. .� �'`�` ,tea+ '��+ ,tea+ c�� '�� tea .\�� S O 'N �,A Qua 04 S�JQ G� OQ 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 following graph depicts the expenses and program revenues for governmental activities for FY 02/03: Expenses and Program Revenues -Governmental Activities 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 X O � p fCD = 3 7 .► m cu M �. ? CD N 0• C � �• c CA CA CD r. �'. � 3 O f rt ` � C C rt fl, fA Expenditures ■ Program revenues The functional revenue for FY 02/03 was $48,986,012 versus $50,769,323 for FY O1/02. The decrease can be attributed to a reduction in capital grants from the prior year related to construction projects and lower investment income. The functional expenses for FY 02/03 were 12 $47,497,312 versus $32,373,821 for FY O1/02. The increase can be attributed to greater debt service, public safety expenses and planning and development costs. The debt service increases are a result of the FY 01 /02 new bond issues, which result in higher debt service payments. The public safety increases are a result of higher police service levels/costs and recording fire service costs as an expense in accordance with a new contract with the County of Riverside. The planning and development costs increases are a result of the Redevelopment Agency efforts to create low and moderate housing within the community and consist of expenditures for the Miraflores Housing and Senior Apartment Projects. The net excess decreased $16,928,199 from FY 01 /02 as a result of lower revenues and greater expenses from the prior year. As mentioned earlier, this net increase of $1.488,700 reported in the Statement of Activities compares to a net increase of $361,737 under the modified accrual basis of accounting. The primary reasons for the differences between the two amounts are: 1) the net reduction in the capitalization of $2.4 million in infrastructure improvements, 2) the reclassification of $2.3 million of long-term principal debt, and 3) the revenue recognition of $1.3 million in deferred revenue. REVENUES -` General Fund Revenues With the economic slow down that occurred during FY 01 /02 continuing during FY 02/03, the City was concerned about the impacts it would have on our tourist industry and sales tax receipts. Transient Occupancy Taxes have returned to the FY 00/01 levels and were just over $4 million and Sales taxes increased from $3.9 million in FY O1/02 to $4.35 million in FY 02/03. 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. It should be noted that the area north of Highway I I I has been fully developed with new home development generally occurring in the central and recently annexed southern portions of the City. The City is home to a world class destination resort which continues to generate transient occupancy taxes. Actual FY 02/03 revenues were generally higher than normal which is explained by the $4.0 million favorable variance with the budget and $1.9 million higher than last year's actual. Compared to last year, taxes increased by $1.1 million, licenses and permits were relatively flat, charges for services increased '/2 million based upon the strong building demand,intergovernmental increased $700,000 based upon population based State subventions - Motor Vehicle In -lieu fee, investment income decreased $136,000 based upon lower interest rates, and miscellaneous income decreased $440,000 based upon a receipt in FY 01 /02 of a one time health care dividend from a insurance provider. With this as background, the following chart and graph reflects the major revenue categories of the General Fund for the last two years: 13 Revenues: Original Budget Final Budget 2003 Actual Favorable/ Unfavorable 2002 Actual Actual Change Taxes $ 9,498,070 9,498,070 11,572,985 2,074,915 10,443,436 1,129,549 Licenses and permits 840,600 840,600 1,982,127 1,141,527 1,857,691 124,436 Charges for services 1,256,700 1,273,450 2,302,759 1,029,309 1,757,744 545,015 Intergovernmental 4,155,800 5,104,555 4,394,046 (710,509) 3,683,490 710,556 Investment income 1,360,600 1,465,600 1,894,303 428,703 2,030,346 (136,043) Miscellaneous 5,000 5,250 87,236 81,986 529,190 441,954 $ 17,116,770 18,187,5251 22,233,456 1 4 045 931 20,301,897 1 1,931 559 Total revenues Other Revenues The Statement of Activities lists FY 02/03 tax increment funds collected of $21,191,832 versus $18,899,329 in FY 01 /02. 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 23% 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 $33,512,175 in expenses for FY 01 /02 as compared to $27,841,749 for the prior year. Of this amount the three largest categories are $7.1 million (6.1 million in FY 00/01) in Planning and Development which includes the RDA, $7.8 million (5.8 million in FY 00/01) in interest debt service costs for outstanding debt, and $7.5 million (5.8 million in FY 00/01) in Public Safety, which includes the costs of the County of Riverside Sheriff's and Fire contracts. 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, $836,310 in library services ($826,510 in FY 00/01) was withheld from our property tax increment payments and not remitted to the City. The Statement of Activities includes fire protection service costs this year of $1,565,220 (offset by a like amount of intergovernmental revenue from tax increment payments) which has not been the case in prior years. The City has entered into an agreement with the County of Riverside to annually set forth the level of service for fire services. Any service level over the amount of tax increment generated from the RDA would require additional payments to the County. General Fund Expenses The following table lists the $15,320,428 in general fund expenditures included in the Statement of Activities. Expenditures Original Budget Final Budget 2003 Actual Favorable/ Unfavorable 2002 Actual Actual Change General government $ 3,886,174 3,858,936 3,140,576 718,360 2,954,060 186,516 Public safety 8,166,379 8,489,691 8,202,408 287,283 7,609,121 593,287 Community services 1,109,518 1,217,949 991,558 226,391 1,014,474 (22,916) Planning and development 822,612 995,363 674,450 320,913 7269589 (52,139) Public works 2,409,823 3,426,7941 2,311 436 1,115,3581 1,536,0331 775,403 $ 16,394,506 17,988,733 1 15 320 428 2,668,3051 13,840,2771 1.480 151 Total expenditures 14 The major increases in the original and final budget for public safety consisted of increases in the plan check services for the Building Division to deal with the increased building activity in the City of La Quinta. The major increase between the original and final budget 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 02/03 can be attributed to added police positions and salaries, 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 six major funds for FY 02/03 — General Fund, Low & Moderate Income Housing Project Area 2 Fund, Debt Service RDA No.l Fund, Debt Service RDA No.2 Fund, Capital Projects Fund, and Capital Fund — Parks and Recreation. 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. For this year, the City of La Quinta has not identified a non -major fund to classify as a 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. 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 02/03. We hope you find this financial report, based upon the third year of implementing 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. 15 (This page intentionally left blank) 16 BASIC FINANCIAL STATEMENTS 17 CITY OF LA QUINTA Statement of Net Assets June 30, 2003 Governmental Activities 2003 2002 Assets: Cash and investments (note 2) $ 81,299,937 65,308,092 Accounts receivable 264,272 581,783 Taxes receivable 263,555 235,029 Prepaid items 17,515 228,233 Interest receivable 173,789 226,787 Notes receivable (note 4) 12,613,565 12,509,966 Due from other governments 4,560,265 4,834,420 Deposits 186,073 149,518 Restricted assets: Cash and investments with fiscal agent (note 2) 30,019,271 39,448,246 Capital assets (note 5): Land 56,467,549 56,467,549 Right of way 230,148,147 230,148,147 Construction in progress 29,604,242 29,880,113 Other capital assets, net 43,025,230 45,239.178 Total assets 488,643,410 485,257,061 Liabilities: Accounts payable 5,363,158 2,039,312 Accrued salaries and benefits 270,617 240,398 Interest payable 2,767,256 2,322,557 Deposits payable 1,768,499 1,314,920 Due to other governments 418,868 - Noncurrent liabilities (notes 6 to 13): Due within one year 4,021,110 3,312,895 Due in more than one year 159,887,567 163,369,344 Total liabilities 174,497,075 172,599,426 Net assets: Invested in capital assets, net of related debt 225,818,022 234,923,191 Restricted for: Public safety 40,210 332,574 Community services 573,981 648,850 Planning and development 18,540,558 19,835,504 Public works 20,883,564 13,891,517 Unrestricted 48,290,000 43,025,999 Total net assets $ 314,146,335 312,657,635 See accompanying notes to the basic financial statements. 18 CITY OF LA QUINTA Statement of Activities Year ended June 30, 2003 Program Revenues Operating Capital Charges for Contributions Contributions - Expenses Net Governmental Activities 2003 2002 Governmental activities: .-- General government $ 3,203,462 298,749 - - (2,904,713) (2,987,685) Public safety 8554715005 25917,866 2402084 - (5,389,055) (4,827,037) Community services L321,825 205,806 5395742 342,448 (233,829) (541,758) -- Planning and development 19>083>860 611,278 225,851 - (18,246,731) (6,233,494) Public works 6,785,759 1,594,225 791,354 4,817,957 417,777 7.081,993 — Interest expense 81555,401 - - - (8,555,401) (6,653.406) Total governmental activities $471497.1312 5,627,924 L797,031 5>160,405 (34,911,952) (14,161,387) General revenues: Taxes: Property taxes Tax increment Sales taxes Transient occupancy taxes Franchise taxes Other taxes Investment income Motor vehicle in lieu Gain (loss) on sale of capital assets 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. 19 11)800,616 11,450,196 21,191,832 181P8995329 4,345,381 3,093,588 4,036,290 31)967,003 690,544 654,696 7005154 479,822 1,353,868 1,867,744 117682091 1,473,217 - (21,397) 513,876 692,691 36,4001)652 32,556,889 15488,700 3121,657,635 18,395,502 294,2625,133 $3142146,335 312,657,635 CITY OF LA QUINTA Governmental Funds - Balance Sheet June 30, 2003 Special Revenue Low/Moderate Income Housing - Assets Cash and investments $ 29,564,818 Cash with fiscal agent - Accounts receivable 99,925 Taxes receivable 263,555 Prepaid items 17,515 Interest receivable 173,789 Notes receivable - Due from other funds (note 19) 32,218 Due from other governments 3,604,543 Advances to other funds (note 19) 21,081,322 Deposits 1,073 Total assets $ 54,838,758 Liabilities and Fund Balances Liabilities: Accounts payable $ 2,362,214 Accrued salaries and benefits 270,617 Deferred revenue 2,496,081 Deposits payable 1,604,477 Due to other governments 397,174 Due to other funds (note 19) 23,512 Advances from other funds (note 19) - Total liabilities 7,154,075 Fund Balances: Fund balances (deficits) (note 22): Reserved for: Debt service - Bond projects - Prepaid items 17,515 Deposits 1,073 Advances to other funds 21,081,322 Notes receivable - Unreserved, reported in: General fund 26,584,773 Special revenue funds - Debt service funds - Capital projects funds - Total fund balances 47,684,683 Total liabilities and fund balances $ 54,838,758 Debt Service Funds Redevelopment Redevelopment Agency - Agency - 5,953,126 13,817,453 5,185,371 - 2,098 164 9,500,000 - - 48,126 248,927 192,504 15,501,252 14,068,478 5,378,039 18,342 9,500,000 y,J 12S,J42 292,097 11,503,322 11,795,419 1,982,545 9,578,000 11,560,545 2,273,059 - 5,982,910 - - - - (6,182,506) 5,982,91U 2,2'/-3,UJ9 (b,IzS2,JUb) 15,501,252 14,068,478 5,378,039 See accompanying notes to the basic financial statements. 20 Capital Projects A-- Redevelopment Other Park and Capital Agency - Governmental Totals Recreation Fund Improvement PA No. 1 Funds 2003 2002 726,139 278,705 7,285,910 15,539,457 78,350,979 62,301,395 _ - 30,016,934 75 30,019,271 39,448,246 '- - 10,000 - 139,347 249,272 581,783 _ _ - - 263,555 235,029 _ - - - 17,515 228,233 _ - - - 173,789 226,787 _ - - 3,113,565 12,613,565 13,215,806 - 63,672 - - 95,890 5,207,097 .... - 349,042 - 117,123 4,560,265 4,834,420 _ - 3,811,874 1,109,846 26,003,042 13,810,753 _ - - 185,000 186,073 149,518 -- 726,139 701419 41,114,718 20,204,413 152,533,216 140,239,067 - 5843-541 24,185 62,521 5,326,445 1,998,744 _ _ - - 270,617 240,398 _ - - 995,979 12,992,060 12,371,097 - 116,878 - 47,144 1,768,499 1,314,920 _ - - 21,694 418,868 - 18,078 - - 54,300 95,890 5,207,097 '- 4,921,720 - - - 26,003,042 13,810,753 4,939,798 701,419 24,185 1,181,638 46,875,421 34,943,009 _ - - 529 2,273,588 4,996,086 _ - 30,016,934 - 30,016,934 37,087,727 _ - - - 17,515 226,485 _ - - 185,000 186,073 149,518 3,811,874 - 24,893,196 13,810,753 - 2,117,586 2,117,586 2,136,111 - 26,584,773 27,981,710 3,399,521 9,382,431 12,107,305 - - (6,182,506) (5,622,884) .- 4,213 659 - 7,261,725 13,320,139 16,368,205 12,423,247 (4,213,659 - 41,090,533 19,022,775 105,657,795 105,296,058 7261,139 701,419 41,114,718 -20,204,413 152,533,216 140,239,067 21 CITY OF LA QUINTA Govermnental Funds Reconcilation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2003 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resouces in governmental fund activity. Infrastructure Other capital assets Accumulated depreciation Long term debt and compensated absences from the General Long Tenn Debt Account Group that have not been included in the governmental field 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. $ 105,657,795 342,622,109 73,483,061 (57,789,212) (152,768,164) (462,260) (10,678,253) (2,767,256) 12,992,060 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 3,856,455 Net assets of governmental activities $ 314,146,335 See accompanying notes to the basic financial statements. wj (This page intentionally left blank) 23 CITY OF LA QUINTA Governmental Fund Types - Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2003 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 $ 11,572,985 2,479,241 21,086,099 9,916,962 Licenses and permits 1,982,127 - - - Charges for services 2,302,759 - - - Developer fees - - - - Intergovernmental 4,394,046 - - - Investment income 1,894,303 129,263 204,789 67,844 Special assessments - - - - Rental income - - - - Miscellaneous 87,236 - - - Total revenues 22,233,456 2,608,504 21,290,888 9>984,806 Expenditures: Current: General government 3,140,576 - - - Public safety 8,202,408 - - - Community services 991,558 - - - Planning and development 674,450 765,795 316,567 149,787 Public works 2,311,436 - - - Capital projects - - - - Debt service: Principal - - 2,264,940 272,978 Interest - - 7,491,294 1,467,846 Payments under pass through obligations - - 9,669,282 7>892,712 Total expenditures 15,3201428 765,795 19,742,083 9,783,323 Excess (deficiency) of revenues over (under) expenditures 61,913,028 1,8425,709 1,548,805 201,483 Other financing sources (uses): Proceeds of tax allocation bonds - - - - Sale of capital assets - - - - Transfers in (note 21) 162,398 19,861 1,738,783 338,895 Transfers out (note 21) (270,346) (585,753) (6,000,000) (1,100,000) Total other financing sources (uses) (107,948) (565,892) (4,261,217) (761,105) Net change in fund balances 6>805,080 1,276,817 (2,712,412) (559>622) Fund balances (deficit) at beginning of year 40,879,603 4,706,093 4,985,471 (5,622,884) Fund balances (deficit) at end of year $ 47,684,683 5,982,910 2,273,059 (6,182,506) See accompanying notes to the basic financial statements. 24 Capital Projects Redevelopment Other Parks and Capital Agency - Governmental Recreation Fund Improvement PA No. 1 Funds Totals 2003 2002 5,271,524 50,326,811 431,0112931 - 1,9821)127 1185701 -' _ _ - - 223022759 1>7572744 424,762 - - 23,596,483 331021,245 222982647 - 1,741,474 - 12059,001 7,1942521 91583,451 -- 28,503 - 652,611 3912396 3,368,709 4,135,009 _ - - 780,259 780,259 757,619 - - 38,692 1,055,818 1,094,510 1>0012389 - 60,000 55,789 280,752 483,777 5845197 453,265 118015,474 7473,092 11,435,233 701554,718 645,987,678 _ - - 203,831 3,3442407 31161,596 _ - - 142,020 81344>428 71610,308 - 2,406 993,964 1,067,837 - - 1,559.4307 4,3381388 7,804,294 101693,374 _ - - 1,37311614 31685,050 2,8971312 -- - 152945,630 - 1112948 16>057,578 572342>978 - 109,034 - 2851000 2,931,952 112453,487 _ 52,523 632216 - 3943,435 914695,314 711017,016 _ _ _ - 17,561,994 13>6692166 -- 52,523 16,1172880 1,5592307 61851,642 70,192,981 114,913,074 400,742 (14,316,406) 812,215) 4,583,591 361,737 (49,925,396) _ _ _ _ - 88,0002000 _ - - - - 146,603 - 14,3161406 6,0001000 11310,913 232887,256 645,2552590 4,773,363) - (1,939,564) (9,218,230) (23,887,256) (65,255,590 4,773,363) 14,3162406 451060)436 (7,907,317) - 8721462603 (4,372,621) - 322482221 (3,323,726) 3611737 372221,207 158,962 - 371842,312 22,3463,501 1052296,058 68,0741851 _ 4,213,659) - 41,090,533 192022,775 1052657,795 105,2962058 .- 25 CITY OF LA QUINTA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2003 Net changes in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation iil the current period. Capital outlay Depreciation 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. $ 361,737 1,355,618 (3,756,163) 2,813,625 (444,699) (40,063) 1,326,803 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. (128,158) Change in net assets of governmental activities $ 1,488,700 See accompanying notes to the basic financial statements. 26 CITY OF LA QUINTA Proprietary Funds Statement of Net Assets June 30, 2003 Assets Current assets: Cash and investments Due from other governments Capital assets, net Total assets Liabilities Current liabilities: Accounts payable Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets Governmental Activities - Internal Service Funds 2003 2002 $ 2,948,958 31,006,697 15,000 - 929,210 1 >018>484 3,893,168 4,025,181 36,713 40,568 929,210 15,018,484 2,927,245 2,966,129 $ 3,856,455 3,984,613 -- See accompanying notes to the basic financial statements. 27 CITY OF LA QUINTA Proprietary Funds Statement of Revenues, Expenses and Changes in Net Assets Year ended June 30, 2003 Governmental Activities - Internal Service Funds 2003 2002 Operating revenues: Charges for services $ 4517512 304,982 Miscellaneous 2, 3 82 - Total operating revenues 453,894 304,982 Operating expenses: Fuel and oil 34,213 30,282 Maintenance and parts 119,032 119,212 Contract services 172,755 189,567 Software and supplies 70, 749 3 9, 060 Depreciation 276, 517 253, 823 Other operating expenses 11,784 8,597 Total operating expenses 685,050 640,541 Operating income (loss) (231,156) (335,559) Non -operating revenues (expenses): Investment income 72, 899 97, 5 86 Total non -operating revenues (expenses) 72,899 97,586 Income (loss) before transfers and capital contributions (15 8,257) (237,973) Transfers in - 1,000,000 Capital contributions 30,099 108,495 Changes in net assets (128,158) 870, 522 Net assets at beginning of year 3,984,613 3,114,091 Net assets at end of year $ 3,856,455 3,984,613 See accompanying notes to the basic financial statements. 28 CITY OF LA QUINTA Proprietary Funds Statement of Cash Flows Year ended June 30, 2003 Governmental Activities - Internal Service Funds 2003 2002 Cash flows from operating activities: "- Cash received from other customers $ 438,894 304,982 Cash payments to suppliers for goods and services (393,873) (347,253) Net cash provided by (used for) operating activities 45,021 (42,271) Cash flows from non -capital financing activities: Transfer from other funds - 1,000,000 Net cash provided by (used for) non -capital financing activities - 1,000,000 Cash flows from capital and related activities: Purchase of fixed assets (175,659) (174,194) Net cash provided by (used for) capital and related activities (175,659) (174,194) Cash flows from investing activities: Interest received on investments 72,899 97,586 Net cash provided by (used for) investing activities 72,899 97,586 Net increase (decrease) in cash and cash equivalents (57,739) 881,121 Cash and cash equivalents at beginning of year 3>006>697 2,125,576 Cash and cash equivalents at end of year $ 2,948,958 3,006,697 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ (231,156) (335,559) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 276,517 253,823 Adjustments: (Increase) decrease in due from other governments (15,000) - (Increase) decrease in other assets 18,515 - Increase (decrease) in accounts payable (3,855) 39,465 Net cash provided by (used for) operating activities $ 45,021 (42,271) Noncash capital, financing and investing activities: Fixed assets contributed by other funds $ 30,099 1081-495 See accompanying notes to the basic financial statements. 29 CITY OF LA QUINTA Agency Funds Statement of Fiduciary Assets and Liabilities June 30, 2003 Assets Cash and investments (note 2) Accounts receivable Total assets Liabilities Due to bondholders Total liabilities 2003 $ 17740,812 44,846 Mn? 1,994,762 $ 1,785,658 111994,762 $ 1,785,658 1,994,762 $ 1,785,658 1>994>762 See accompanying notes to the basic financial statements. 30 CITY OF LA QUINTA Notes to the Basic Financial Statements Year ended June 30, 2003 (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 statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City: La Ouinta Redevelopment Aizenc The La Quinta Redevelopment Agency (Agency) has established two redevelopment project areas pursuant to the State of California Health & Safety Code, Section 33000 entitled "Community Redevelopment Law". On November 2% 1983 and May 16, 1989, the City Council approved and adopted the Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These plans provide for the elimination of blight and deterioration, which was found to exist in the project areas. Although the Agency is legally separate, it is reported as if it were part of the City because the City W CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (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 305 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. 32 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (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 transactions 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 nonmajor 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. 33 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (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. 34 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 1) Summary of Significant Accounting Policies, (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. 35 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (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. Parks and Recreation Capital Projects 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. 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. Redevelopment Agency Capital Projects — Project Area No. 1 Fund — This fund is used to account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition within the project area. Other fund types of the City are as follows: Internal Service Funds: Equipment Replacement Fund — This fund accounts for equipment and vehicle maintenance and replacement services provided to other departments on a cost - reimbursement basis. Information Technology Fund — This fund is used to account for the acquisition of computer equipment, maintenance, and services to support information systems within the City. Costs are reimbursed by the benefiting departments. 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. CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (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. r-- 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. (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 capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital 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. 37 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (f) Capital Assets, (Continued) 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 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. (i) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. 0) Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available -for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 38 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 $ 81,299,937 Cash and investments with fiscal agent 30,019,271 Statement of Fiduciary Assets and Liabilities: Cash and investments 1,740,812 Total 1133060,020 �- Cash and investments held by the City at June 30, 2003 consisted of the following: Petty cash $ 1,000 Demand deposits 5,832,441 Investments 107,226,579 Total $113,060,020 The City and its component units are authorized by its investment policy to invest in the following types of investments: Investment Type Restriction -- U.S. treasuries and Government National Mortgage Association None FHLB, FFCB, FLB, FICB, FNMA, FHLMC $5 million per issuer Student Loan Marketing Association $3 million Government pools $40 million and 20% of portfolio U.S. government and agency securities 100% of portfolio Commercial Paper $3 million per issuer, 15% of portfolio ^- and 90 days 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. 39 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Deposits of cities and other state or local governments are classified in three categories to give an indication of the level of credit risk assumed by the City, as follows: Category 1 - includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 - includes deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent or Depository and subject to certain regulatory requirements under State law. Category 3 - includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits. Category Bank Book Form of Deposit 1 2 3 Balance Balance Deposits held by the City: Demand deposits 100 000 5,821,596 - 5,921,596 5,832,441 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. 40 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 $ 191050,157 - - 19,050,157 U.S. Treasury Bills 21,962,478 - - 21,962,478 Government Agency Securities 14,929,002 - - 14,929,002 Investments held by fiscal agent: U.S. Treasury Bills - 29,002,448 - 29,002,448 $ 55,941,637 29,002,448 - 84,944,085 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund 21,265,671 Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 1,016,823 $107,226,579 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. 41 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 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. 42 CITY OF LA QUINTA —' Notes to the Basic Financial Statements (Continued) Outstanding (4) Notes Receivable Balance at June 30, 2003 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. $ 3,031,367 In December 2000, the Redevelopment Agency entered into an agreement with DC&TC, LLC to receive $9,500,000 as a reimbursement for Agency costs incurred for the construction of infrastructure related to the development of senior -- apartments. Payments are due to the Agency in the amount of annual positive cash flow generated by the rental of the units. All unpaid principal and interest on the note are due fifty-five years after the completion of the project. Interest on the note accrues at 3% per annum. 9,500,000 Other notes receivable 82,198 Total $ 123613,565 43 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (5) Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2003 is as follows: Balance at Balance at June 30, 2002 Additions Deletions June 305 2003 Buildings and improvements $ 15,596,822 8313454 - 16,428,276 Equipment and furniture 1,985,975 59,825 (57,520) 1,988,280 Vehicles 945,851 29,667 (21,179) 954,339 Infrastructure 82,071,651 798,069 - 82,869,720 Total cost of depreciable assets 10000,299 1,719,015 (78,699 102,240,615 Less accumulated depreciation: Buildings and improvements Equipment and furniture Vehicles Infrastructure Total accumulated depreciation Net depreciable assets Capital assets not depreciated: Land Right of way Construction in progress Capital assets, net 4450,611 750,140 (305) 5,200,446 1,238,543 1425631 (164,279) 15216,895 595,217 96,852 (13,832) 6785237 49.076.750 3.043.057 - 52.119.807 5553615121 4,0325680 (178,416) 59,215,385 45,239,178 (2,313,665) 99,717 43,025,230 56,467,549 - - 5634675549 230,148,147 - - 23051485147 29,880,113 7,026,490 (7,302,361) 29,604,242 $361734,987 4,712,825 7,202,644) 359,245,168 Depreciation expense was charged in the following functions in the Statement of Activities: General government Public safety Community services Planning and development Public works Total 44 $ 118,266 466,152 319,990 29,253 3.099.019 4 032,680 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, 2003 were as follows: Amounts Balance at Balance at due within June 30, 2002 Additions Deletions June 30, 2003 one year City: Compensated absences payable $ 422,197 546,881 (506,818) 462,260 416,034 Due to the Coachella Valley Association of Governments 528,311 - (50,000) 478,311 50,000 Developer Agreement Payable 743,723 - (59,035) 684,688 58,199 RDA Project Area No. 1: Tax allocation bonds 119,944,836 64,658 (1,260,000) 118,749,494 1,890,000 Housing tax allocation bonds 16,333,872 - (307,022) 16,026,850 318,831 Pass -through agreements payable: Coachella Valley Unified School District 8,063,172 - (697,918) 7,365,254 711,877 RDA Project Area No. 2: Tax allocation bonds 6,505,000 53,670 (90,000) 6,468,670 90,000 Housing tax allocation bonds 4,416,128 - (82,978) 4,333,150 86,169 Due to County of Riverside 2,250,000 - (100,000) 2,150,000 100,000 Financing Authority: Revenue bonds 7,475,000 - (285,000 7,190,000 300,000 Total $166,682,232 (3,438,771) 163,908.677 4 1 (7) Due to the Coachella Valley Association of Governments The City of La Quinta entered into an Interchange Reimbursement Agreement with the Coachella Valley Association of Governments (CVAG) to finance capital improvements at the Washington Street I-10 interchange. The City will reimburse CVAG $828,311 over a period of seventeen years beginning July 31, 1996. The annual payments to CVAG range from $28,311 to $50,000. At June 30, 2003, the balance is $478,311. 45 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (7) Due to the Coachella Valley Association of Governments, (Continued) The minimum annual requirements to amortize payable to Coachella Valley Association of Governments as of June 30, 2003 are as follows: June 30 Principal 2004 $ 501,000 2005 505000 2006 505000 2007 50,000 2008 50,000 2009 50,000 2010 505000 2011 50,000 2012 50,000 2013 28,311 478 311 (8) Tax Allocation Bonds As of June 30, 2003, the following issuances of Tax Allocation Bonds were outstanding: Series 1994 Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on May 5, 1994, in the amount of $26,665,000 to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $18,410,000. 46 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) Series 1998, Proiect Area No. 1 Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues. 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, 2003 is $15,760,000. Series 1998. Proiect 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. 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, 2003 is $6,415,000. 47 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) Tax Allocation Bonds, Series 2001 — Project Area No. 1 On August 15, 2001, the Agency issued tax allocation bonds in the amount of $48,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and issuance costs of $1,517,325. The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature on September 1, 2021 and $30,720,000 of term bonds that accrue interest at 5.18% and mature on September 1, 2031. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2003 is $4611895590 ($48,000,000 net of unamortized discount and issuance costs of $1,810,410). Tax Allocation Bonds, Series 2002 — Project Area No. 1 On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. the 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs of $1,2505096. At June 30, 2003, the unexpended balance of bond proceeds is $30,133,486. The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. Term bonds accrue interest at 5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to obtain a surety agreemen t 48 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) The minimum annual requirements (including sinking 30, 2003 are as follows: g fr1,1 nd requirements) to amortize tax allocation bonds as of Ju ne 1994 Tax Allocation Bonds 1998 Tax Allocation Boncds 2001 Tax Alloca ' June 30 Princi a1 tion Bonds 2002 Tax Allocation Bonds 1998 Project Allocation ton ---- P Interest Princi al 2004 $ 1,325,000 1,274,465Interest Allocation Principal Interest Bonds 819,520 ----- Principal Interest 2005 1,430,000 1,182,140 - 2,430,720 Prl--- n= l Interest 2006 1'510,000 1,087,700 - 819,520 _ 565,000 1,905,825 90,000 _ 2,430,720 575,000 1,895,131 327,080 2007 1,620,000 973,455 819,520 - 2,430,720 585,000 95,000 323,264 2008 1,740,000 850,815 819,520 - 2,430 720 1,882,361 100,000 319,168 2009 1,865,000 719,233 819,520 _ ' 615,000 1,867,091 105,000 314,785 _ 2,430,720 615,000 1,849,617 2010 2,000,000 578,160 819,520 - 2,430,720 110,000 310,135 2011 - 819,520 660,000 1,829,914 115,000 2,145,000 426,868 - 2,430,720 660,000 305,184 2012 2,305,000 264,443 - 819,520 - 2,430 720 1,807,557 120,000 299,550 _. 2013 - 819,520 700,000 1,782,926 125,000 2,470,000 90,155 - 2,430,720 705,000 1,756,430 293,272 2014 _ - 819,520 2,430,720 130,000 286,737 2015 - _ 655,000 802,490 1,565,000 2 391 595 735,000 1,727,981 I40,000 279,819873 2016 - - 690,000 767,520 1,645,000 2,311,345 705,000 1,695,656 145,000 272,516 2017 - 725,000 730,730 1,730,000 2 226,970 735,000 1,659,656 150,000 765,000 691,990 1,815,000702,22 97 770,000 1,622,031 264,956713 20181 b0,000 257,013 2019 - 800 000' 810,000 1,582,531 170,000 _ � 651,300 1,905,000 2,045,345 248,556 2020 - _ 845,000 608,530 2,000,000 1,945,345 855,000 1,540,906 175,000 890,000 895,000 1,497,156 239,716 2021 _ 563,420 2,100,000 1,845,220 185,000 230,631 2022 - - 935,000 515,970 2,205,000 1,737,595 940,000 1,451,281 195,000 985,000 466,050 2,315,000 1,624,595 1035'000 220,631 20231,403,156 205,000 1,035,000 413,530 5,000 1,352,656 210,131 .-- 2024 _ 2,430,000 1,504,755 � 215,000 199,106 2025 _ 1,090,000 358,280 2,555,000 1,377,637 1 ,/40,000 00 1,299,531 1,145,000 230,000 187,425 2026 _ 300,170 2,685,000 1,243,069 240,000 175,087 1,205,000 239 070 1,244,018 1,200,000 1,183,106 2027 _ 2,820,000 1,103,640 255,000 162,094 ,2028 - - 1,265,000 174,850 2,965,000 1,265,000 1,119,941 265,000 1,330,000 956,123 1,330,000 1,053,444 148,444 2029 _ 107,380 3,120,000 800 955280,000 134,138 2030 _ - 1,400,000 36,400 3,275,000 1,395,000 983,615 295 000 637 882 119,044 2031 _ - 3,445,000 466,523 1, 15,000 910,200 310,000 103,163 ^.032 - - _ 3,1 0,000 795,272 325,000 86,494 _ _ 3,620,000 286,365 3,170,000 - 3,805,000 636,781 345,000 68,906 _ _ 97,027 3,335,000 470,091 1034 - 360,000 50,400 -_ -_ -_ 7,505,000 192,316 380,000 30,975 $ 18,410,0007,447,434-- 4 0 � 0 -� 15,7�60,000 15,6�80 48,000,000 000 51,050,855 40,000,000 _� 41_,997� 6,415,000 6,478,780 49 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (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 $22,4551,000 to increase, improve and/or preserve the supply of low and moderate income housing in the City. Interest is payable semi-annually on March 1 and September 1 of each year commencing March 1, 1996. Interest payments range from 4% to 6% per annum. The interest and principal of the bonds are payable from pledged tax increment revenues of both project areas. Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2011 and on each September 1 thereafter, through September 1, 2025, at a price equal to the principal amount plus accrued interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The principal balance of outstanding bonds at June 30, 2003 is $20,360,000. 50 t. CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 9 1995 Housin Tax Allocation Bonds (TABS), Continued The minimum annual requirements (including sinking housing tax allocation bonds as of June 30, 2003 are as old requirements) to amortize — lows: June 30 1995 Housin Principal TABS Interest -' 2004 2005 $ 405,000 425,000 1,183,538 2006 2007 450,000 1,162,990 1,140,890 2008 5303000 560,000 1,115,502 2009 2010 590,000 1,086,470 1,055,125 "- 2011 620000 , 655,000 1,021,540 2012 2013 6955000 985,840 946,650 — 2014 735,000 780,000 903,750 2015 2016 825,000 8581,300 810,150 2017 875,000 925,000 759,150 2018 2019 985,000 705,150 647,850 2020 1,040,000 1105000 587,100 2021 2022 ,, 1,170,000 522,750 454,500 2023 1,240,000 15315,000 382,200 2024 2025 1,3955000 305,550 224,250 2026 - 1,475,000 56 000, 138,150 _1,5 46,950 20 360 000 17,044,345 — 10 1996 Lease Revenue Refunrl�� Bonds On November 15, 1996, the Authority is sued Refunding Bonds to defense the remaining 1991 Local90,000 of 1996 Lease Revenue '- amount of $8,200,000 and to provide funds for constru Agency Revenue Bonds in the to the La Quinta Civic Center site. ction of remaining improvements 51 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (10) 1996 Lease Revenue Refunding Bonds, (Continued) The bonds consist of $3,630,000 of serial bonds and $5,160,000 of term bonds. The serial bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts mature between October 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, 2003 is $7,190,000. The minimum annual requirements (including sinking fund requirements) to amortize revenue bonds as of June 30, 2003 are as follows: 1996 Revenue Bonds June 30 Principal Interest 2004 $ 300,000 3805830 2005 315,000 366,220 2006 330,000 3505575 2007 3455000 3335865 2008 360,000 315,880 2009 380,000 2961,450 2010 4001)000 2755280 2011 420,000 252,525 2012 445,000 228,521 2013 4701,000 2035130 2014 495,000 1765351 2015 52500 148,046 2016 555,000 118,076 2017 58500 86,441 2018 6155000 535141 2019 650,000 M038 $7,190}000 3,603,369 (11) Due to County of Riverside Proiect 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 52 r-- CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 11) Due to Countv of Riverside, (Continued 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 r-- over a payment schedule through June 30, 2015. Interest does not accrue on this obligation. The balance at June 30, 2003 is $2,150,000. The minimum annual requirements to amortize amounts due to the County of Riverside as of June 30, 2003 are as follows: June 30 Principal 2004 $ 100,000 2005 1002000 2006 100,000 2007 100,000 2008 150,000 2009 200,000 2010 200,000 2011 200,000 2012 250,000 2013 250,000 2014 2507000 2015 250,000 2 150 000 (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, 2003 totaled $7,365,254. 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. 53 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (12) Notes Payable to Coachella Valley Unified School District, (Continued) The minimum annual requirements to amortize payable to Coachella Valley Unified School District as of June 30, 2003 are as follows: June 30 Principal 2004 $ 711,877 2005 726,114 2006 740,636 2007 7555449 2008 7705558 2009 785,968 2010 801,688 2011 8175722 2012 834,076 2013 421.166 7 365,254 (13) Developer Agreement Payable In December 1998, the City entered into a tax sharing agreement with Stamko Development Co. in relation to the development of an auto mall located within the City. For a period of ten years, the agreement requires the City to make quarterly payments to the developer in the amount of 33% of the sales and use tax revenues generated by the site up to a maximum amount of $122,250 in any twelve month period. Additionally, if the sales and use tax revenues generated exceed $530,000, adjusted annually by the CPI index, the City is required to pay $76,411 for that year for a maximum of ten years. During the year ended June 30, 2002, the developer completed all the requirements to be entitled to begin receiving payments from the City. However, sales and tax revenues for the year ended June 30, 2003 did not exceed the required $550,670. Therefore, the additional $76,411 was not paid to the developer. 54 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (13) Developer Agreement Payable, (Continued) The minimum annual requirements to amortize the developer agreement payable as of June 30, 2003 are as follows: -- June 30 Principal Interest Total 2004 $ 58,199 64,051 1225250 2005 675496 545754 122,250 2006 735403 48,847 122,250 2007 79,812 42,438 122,250 2008 86,772 35,478 1225250 "-' 2009 96,311 25,939 122,250 2010 1045498 17,752 122,250 2011 118.197 4,053 122,250 684 688 293,312 978,000 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, 2003: Amount Outstanding Proceeds Maturity Date Interest Rate at June 30, 2003 Assessment District No.90-1 $1,227,155 9/2/05 6.50%-7.00% $ 225,000 Assessment District No. 91-1 2,240,866 9/2/06 6.70%-6.80% 545,000 Assessment District No. 92-1 1,880,891 9/2/08 5.00%-5.40% 795,000 Assessment District No. 97-1 705,262 9/2/18 4.10%-5.20% 630,000 Assessment District No. 2001-1 2,285,000 9/2/15 5.00%-6.60% 1,985,000 55 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (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, 2003, the rate was 0% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. Annual Pension Cost For 2003, the City's annual pension cost (employer contribution) in the amount of $0 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2000, 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 4.5%. 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. 56 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) G 5) Defined Benefit Pension Plan, (Continued) Miscellaneous Employees Three -Year Trend Information Annual Pension Percentage of Net Pension Fiscal Year Cost APC APC Contributed Obligation 6/30/01 $701752 100% -0- 6/30/02 1,369 100% -0- 6/30/03 0 100% -0- Required Supplementary Information ($ amount in thousands) Entry Age Normal Actuarial Unfunded Annual UAAL Accrued Value Liability/ Covered Asa % of Valuation Date Liability of Assets (Excess Assets) Funded Status Payroll Payroll 06/30/99 $4,989,981 7,206,658 (2,216,677) 144.4% 3,087,175 (71.8%) 06/30/00 5,704,327 8,340,014 (2,635,687) 146.2% 3,146,845 (83.8%) 06/30/01 6,314,188 8,806,753 (2,492,565) 139.5% 3,349,776 (74.4%) (16) Claims Pavable/Self Insurance The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 92 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 $30,000 of each occurrence is charged directly to the city; costs from $30,001 to $750,000 are pooled based on a members share of costs under $30,000; costs from $750,001 to $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. 46 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (16) Claims Payable/Self Insurance, (Continued) 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 $10,000 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 $2,000,000 per claim are pooled based on payroll. Costs between $2,000,000 and $50,000,000 are paid by excess insurance purchased by the Authority. The excess insurance provides coverage of $50,000,000 per occurance. 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. (18) Educational Revenue Augmentation Fund (ERAF) Payment During fiscal year ended June 30, 2003, Chapter 1127 of the 2002 Statutes of the State of California require redevelopment agencies to shift $75 million in property tax revenue to kindergarten through twelfth grade schools and community colleges. The State Department of Finance has determined that the La Quinta Redevelopment Agency amount is $723,518 of the $75 million which was forwarded to the Riverside County Auditor in accordance with the statute. 58 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (19) Interfund Receivables and Payables Current interfund receivables and payables balances at June 30, 2003 are as follows: Due from other funds Due to other funds Amount General Fund Other governmental funds $ 3 2,218 (A) Capital Improvement Fund General Fund 23,512 (B) Parks and Recreation Fund 18,078 (B) Other governmental funds 22,082 (B) -- 95 890 (A) Short term borrowing to cover temporary cash shortfalls. B Short term borrowing to cover June 2003 construction project expenditures. () g P j P Noncurrent interfund receivable and payable balances at June 30, 2003 are as follows: Advances to other funds Advances from other funds Amount General Fund RDA Debt Service — PA No. 1 $ 5,398,322 (C) RDA Debt Service — PA No. 2 %578,000 (C) RDA Capital Projects — PA No. 1 6,105,000 (D) Subtotal 21,081,322 RDA Capital Projects — PA No. 1 Parks and Recreation Fund 3,811,874 (E) RDA Capital Projects — PA No. 2 Parks and Recreation Fund 13109,846 (F) Total $263003,042 (C) As of June 30, 2003 the amount due to the General Fund from RDA Debt Service 1 was $5,398,322 and from RDA Debt Service 2 was $9,578,000. These outstanding advances consist of monies loaned to the Redevelopment Agency with no required repayment date and accrues interest at 10% per annum. (D) In April 2003, the General Fund advanced $6,105,000 to the Redevelopment Agency Capital Projects — PA No. 1 Fund to provide funding for capital projects within the project area. The advance accrues interest at 7% per annum and is to be repaid by November 29, 2033. 59 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (19) Interfund Receivables and Payables, (Continued) (E) In January 2002, the Redevelopment Agency Capital Projects — PA No. 1 Fund advanced $2,448,263 to the Parks and Recreation Fund to provide funding for civic center campus improvements. The advance accrues interest at the earnings rate of the City's investment pool funds. Annual installments due July 31, 2002 and 2003 shall not be less than the amount of park facility developer impact fees collected by the City during the period to which a particular installment payment applies. In July 2002, another advance of $1,908,192 was made to provide funding for the development of the publicly owned improvements to the La Quinta Community Park. Annual payments will be determined by City Council. The remaining balance of these advances at June 30, 2003 is $3,811,874. (F) In July 2002, the Redevelopment Agency Capital Projects — PA No. 2 Fund advanced $1,100,000 to the Parks and Recreation Fund to provide financing for the development of the publicly owned improvements to the La Quinta Community Park. Annual payments will be determined by City Council. At June 305 2003, the outstanding balance of the advance is $1,109,846. (20) Construction Commitments The following material construction commitments existed at June 30, 2003: Project Name Municipal Library The Ranch Fire Station Phase 2 — Jefferson St. Improvements (Hwy. 111) Miraflores Senior Apartments Museum Expansion 60 Expenditures as of Remaining June 30, 2003 Commitments $ 226,746 55074,930 42,867,153 3,132,847 1,0035343 2,670,449 45141 2,610,183 6,0901)410 25519,415 68,394 1,1075979 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (21) Interfund Transfers Interfund transfers were as follows for the year ended June 30, 2003: Transfer In Transfer Out Amount General Fund Non-Maj or Funds $ 162,398 Low/Moderate Income Housing PA No. 2 Fund Non -Major Funds 19,861 RDA Debt Service - PA No. 1 Fund Non -Major Funds 1,738,783 (A) RDA Debt Service - PA No. 2 Fund Low/Moderate Income Housing PA No. 2 Fund 338,895 Capital Improvement Fund General Fund 268,346 Capital Improvement Fund Low/Moderate Income .-- Housing PA. No. 2 Fund 2465858 Capital Improvement Fund Parks and Recreation Fund 4,773,363 (B) Capital Improvement Fund RDA Capital Projects - PA No. 1 Fund 1,939,564 (C) Capital Improvement Fund Non -Major Funds 7,088,275 (D) Subtotal Capital Improvement Fund 14,316,406 RDA Capital Projects - PA No. 2 Fund RDA Debt Service - PA No. 2 Fund 1,100,000 (E) _., RDA Capital Projects - PA No. 1 Fund RDA Debt Service - PA No. 1 Fund 65000,000 (F) Non -Major Funds General Fund 2,000 Non -Major Funds Non -Major Funds 208,913 $23,887,256 �-- The following describes the major transfers in and transfers out included in the financial statements: Transfers to Mai or Funds (A) $1,738,783 was transferred to the RDA Debt Service - PA No. 1 Fund from the Low/Moderate Income Housing - Project Area No. 1 Fund for debt service payments on amounts due to the 1995 Housing Tax Allocation Bonds. (B) $4,773,363 was transferred to the Capital Improvement Fund from the Parks and .- Recreations Fund for reimbursements of capital outlay for park and recreation projects. 61 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (21) Interfund Transfers, (Continued) (C) $1,939,564 was transferred to the Capital Improvement Fund from the RDA Capital Projects — PA No. 1 Fund for reimbursements of various capital projects. (D) $7,088,275 was transferred to the Capital Improvement Fund from other governmental funds for reimbursements of various capital projects. (E) $1,100,000 was transferred to the RDA Capital Projects — PA No. 2 Fund from the RDA Debt Service — PA No. 2 Fund in relation to an advance from the RDA Capital Projects — PA No. 2 Fund to the Parks and Recreation Fund. (F) $6,000,000 was transferred to the RDA Capital Projects — PA No. 1 Fund from the RDA Debt Service — PA No. 1 Fund in relation to an advance from the General Fund to the RDA Capital Projects — PA No. 1 Fund. (22) Fund Deficits The following fund had a deficit balance at June 30, 2003: Special Revenue Fund: Federal Assistance $ (7,320) Debt Service Fund: Redevelopment Agency — PA No. 2 (6,182,506) Capital Projects Fund: Parks and Recreation (4,213,659) Redevelopment Agency — PA No. 2 The deficit was created by outstanding advances from the General Fund which are intended to be paid back in the future with anticipated tax increment revenues. Parks and Recreation The deficit was created by outstanding advances from Capital Projects Funds — PA No. 1 and 2 to accelerate park projects. The advances are intended to be paid back in the future with future park developer impact fee collections. 62 r-- CITY OF LA QUINTA -' Notes to the Basic Financial Statements (Continued) 23) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2003 exceeded the appropriations of the following funds/departments: Budget Actual Variance General Fund: Building $ 76408 867,135 (102,267) Parks and recreation programs 95,850 1025395 (6,545) Development and traffic 992,859 1,060,949 (68,090) Maintenance/operations — L&L 772,086 789,483 (17,397) -- Capital projects administration (18,944) 140,656 (159,600) Special revenue funds: South Coast Air Quality 5,700 8,043 (2,343) CV Violent Crime Task Force 1205000 132,020 (12,020) (24) Conduit Debt Financing 2002 Series A Variable Rate Multifamily Housing Revenue Bonds r- In March 2002, the La Quinta Redevelopment Agency issued $5,000,000 of 2002 Series A Variable Rate Multifamily Housing Revenue Bonds to provide financing for the acquisition, construction and equipping of a multifamily senior rental housing project known as Miraflores Apartments located in the City of La Quinta. The bonds mature on May 15, 2035. Outstanding bonds at June 30, 2003 are $5,000,000. The bonds are secured solely by the credit facility, Fannie Mae, and by a pledge of the trust estate comprised of bond proceeds and property. The bonds are not obligations of the issuer, but payable solely from the security. 2002 Series B Multifamily Housing Revenue Bonds In April 2002, the La Quinta Redevelopment Agency issued $3,000,000 of 2002 Series B Multifamily Housing Revenue Bonds to provide financing for the acquisition, construction and equipping of a multifamily senior rental housing project known as Miraflores Apartments located in the City of La Quinta. The bonds mature on June 1, 2035 and bear interest at 5.5% per annum. Outstanding bonds at June 30, 2003 are $3,000,000. The bonds are secured solely by the credit facility, Fannie Mae, and by a pledge of the trust estate comprised of bond proceeds and property. The bonds are not obligations of the issuer, but payable solely from the security. 63 (This page intentionally left blank) 64 REQUIRED SUPPLEMENTARY INFORMATION 65 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. 66 r- CITY OF LA QUINTA Notes to Required Supplementary Information Year ended June 30, 2003 11 Budeets 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 $32,573,559 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. 21 Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2003 exceeded the appropriations of the following funds/departments: Budget Actual Variance General Fund: Building $ 764,868 867,135 (102,267) Parks and recreation programs 95,850 102,395 (6,545) Development and traffic 992,859 15060,949 (68,090) -- Maintenance/operations — L&L 7725086 789,483 (17,397) Capital projects administration (18,944) 140,656 (159,600) 67 Revenues: Taxes Licenses and permits Charges for services Intergovernmental Investment income Miscellaneous Total revenues Expenditures: General government: Legislative City manager Economic development Personnel Fiscal services Central services City clerk Total general government Public safety: Police Building and safety administrative Code compliance Animal control Building Emergency services Fire Civic center building Total public safety Community services: Senior center Parks and recreation administration Parks and recreation programs Total community services CITY OF LA QUINTA General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (Negative) Actual $ 9,498,070 9,498,070 11,572,985 2,074,915 10,443,436 840,600 840,600 1,982,127 1,141,527 1,857,691 1,256,700 1,273,450 2,302,759 1,029,309 1,757,744 4,155,800 5,104,555 4,394,046 (710,509) 3,683,490 1,360,600 1,465,600 1,894,303 428,703 2,030,346 5,000 5,250 87,236 81,986 529,190 17,116,770 18,187,525 22,233,456 4,045,931 20,301,897 666,585 666,585 562,397 104,188 535,735 519,002 468,120 424,596 43,524 247,986 905,719 905,719 774,128 131,591 784,007 460,565 498,565 376,300 122,265 440,464 423,404 391,171 375,027 16,144 372,339 587,994 590,871 331,493 259,378 288,355 322,905 337,905 296,635 41,270 285,174 3,886,174 3,858,936 3,140,576 718,360 2,954,060 4,435,632 4,511,101 4,485,189 25,912 3,990,644 180,816 180,816 178,681 2,135 172,423 566,659 568,159 521,909 46,250 430,897 203,582 203,582 170,115 33,467 156,219 559,868 764,868 867,135 (102,267) 686,683 35,390 35,390 23,159 12,231 80,794 1,752,000 1,783,343 1,525,113 258,230 1,602,204 432,432 442,432 431,107 11,325 489,257 8,166,379 8,489,691 8,202,408 287,283 7,609,121 289,365 291,065 269,386 21,679 247,073 724,303 831,034 619,777 211,257 691,439 95,850 95,850 102,395 (6,545) 75,962 1,109,518 1,217,949 991,558 226,391 1,014,474 (Continued) ^' CITY OF LA QUINTA General Fund Schedule of Revenues, Expenditures and Changes -- in Fund Balances - Budget and Actual (Continued) Variance with Prior Budget Final Budget Year Original Final Actual Positive (Negative) Actual "- Planning and development: Community development administration 421,112 421,112 280,908 140,204 273,239 Current planning 401,500 574,251 393,542 180,709 453,350 Total planning ,.._ and development 822,612 995,363 674,450 320,913 7262589 Public works: Public works administration 164,998 183,019 139,120 43,899 205,971 Development and traffic 7333-619 992,859 1,0%949 (68,090) 842,547 Maintenance/operations - St. 544,060 1,497,774 181,228 1,316,546 200,330 Maintenance/operations - L & L 764,286 772,086 789,483 (17,397) 401,028 -- Capital projects administration 202,860 (18,944) 140,656 (159,600) (113,843) Total public works 21409,823 3,426,794 2,311,436 1,115,358 1,536,033 _ Total expenditures 16,394,506 17,988,733 15,320,428 211,668,305 13,840,277 Excess (deficiency) of .- revenues over (under) expenditures 722,264 198,792 6,913,028 6,714,236 6,461,620 .- Other financing sources (uses): Transfers in 30,000 176,716 162,398 (14,318) 189,072 Transfers out (124,250) (1,473,812) (270,346) 1,203,466 (1,395,559) Total other financing sources (uses) (94,250) (1,297,096) (1071,948) 1,189,148 1,206,487 Net change in fund balance 628,014 (1,098,304) 6,805,080 7,903,384 5,255,133 Fund balance at beginning of year 403187903 40X%603 40,879,603 - 35,624,470 Fund balance at end of year $ 41,507,617 39,781,299 47,684,683 7,903,384 40,879,603 69 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, 2003 Revenues: Taxes Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 11)8961)343 2,3601,051 21)479,241 119,190 2,025,212 20,700 38,207 129,263 91,056 115,747 1,917,043 2,398,258 2,608,504 210,246 2,140,959 1,771,247 1,883,543 7651,795 1,771,247 1,883,543 765,795 145,796 514,715 1,842,709 1,117,748 1,117,748 i ')n7 nnA ion -ynn 682,702 1,458,257 - 801,358 - (801,358) - - 16,964 19,861 2,897 - (338,895) (4,448)587) 585,753 3,862,834 (503,010) (338,895) (3,6301)265) 565,892 3,064,373 (503,010) (193,099) (3,115,550) 1,276,817 4,392,367 955,247 41-706,093 41706,093 4,706,093 - 3,750,846 $ 411512,994 1,590,543 5,982,910 47392,367 4,706,093 70 SUPPLEMENTARY SCHEDULES 71 CITY OF LA QUINTA Non -Major Governmental Funds Combining Balance Sheet June 30, 2003 Debt Special Service Fund Capital Revenue Financing Projects Totals Funds Authority Funds 2003 2002 Assets Cash and investments $ 31332,905 2,971 12,203,581 15,539,457 17,700,009 Cash with fiscal agent 17 58 - 75 2,245,152 Accounts receivable 78,447 - 60,900 139,347 1665984 Notes receivable 3,113)565 - - 3,113,565 3,009,966 Due from other funds - - - - 180,999 Due from other governments 117,123 - - 117,123 150,677 Advances to other funds - - 1,109,846 1,109,846 - Deposits 185,000 - - 185,000 - Total assets $ 6>827,057 3,029 13,374,327 20,204,413 23,453,787 Liabilities and Fund Balances Liabilities: Accounts payable $ 33,668 2,500 26,353 62,521 47,837 Deferred revenue 995,979 - - 995,979 873,855 Deposits payable 19,309 - 27,835 47,144 15,788 Due to other governments 21,694 - - 21,694 - Due to other funds 54,300 - - 54,300 169,806 Total liabilities 1,124,950 25500 54,188 1,18151638 1,107,286 Fund balances: Reserved for: Debt service - 529 - 529 10,615 Notes receivable 2,117)586 - - 2,117,586 2,136,111 Deposits 185,000 - - 185,000 - Unreserved: Designated for capital projects - - 13,320,139 13,320,139 12,759,428 Undesignated 3,399,521 - - 3,399,521 7,440,347 Total fund balances 5,702,107 529 13,320,139 19,022,775 22,346,501 Total liabilities and fund balances $ 6,827,057 3,029 13,374,327 20,204,413 23,453,787 72 CITY OF LA QUINTA Non -Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2003 Revenues: Taxes Developer fees Intergovernmental Investment income Special assessments Rental income Miscellaneous Total revenues Expenditures: Current: General government Public safety Community services Planning and development Public works Capital outlay Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Debt Special Service Fund Capital Revenue Financing Projects Totals Funds Authority Funds 2003 2002 $ 5,271,524 - - 5,271,524 4,488,487 3192970 - 212765513 2,596,483 1,827,222 8591>001 - 2002000 1,05911001 12117,668 86,752 80 304,564 391,396 8282795 780,259 - - 780,259 757,619 376,863 6783,955 - 11>055,818 1,001,389 280,752 - - 280,752 55,007 7,9752121 679,035 22781,077 11,4352233 10,076,187 142,020 2,406 4,111,103 12373,614 1112948 9,686 285,000 394,435 5,741,091 6891121 203,831 203,831 207,536 - 1422020 12187 - 231406 53,363 217,599 4,338,388 3,973,785 - 1,37311614 1,361,279 - 111,948 - - 285,000 275,000 - 394,435 407,177 421,430 6,8512642 6,2792327 2,234,030 (10,086 2,359,647 4,583,591 3,796,860 - - - - 146)603 2,000 - 1,308,913 1,310,913 2,000 6,1102381 - 3,107,849 (9,218,230) (7,757,991) 6,108 381 - (1,798,936) (7,907,317) (7,609,388) (3,874,351) (10,086) 5602711 (3,323,726) (3,812,528) 91576,458 10,615 1227592428 22,34651501 2611159,029 $ 5,702,107 �52_9 13,320,139 19,022,775 22,346,501 73 (This page intentionally left blank) 74 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. Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of approved artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites. 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. -- Coachella Valley Violent Crime Task Force Fund — To account for the activities of the Coachella Valley Violent Crime Task Force. 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. 75 Assets Cash and investments Cash with fiscal agent Accounts receivable Notes receivable Due from other funds Due from other governments Deposits Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deferred revenue Deposits payable Due to other governments Due to other funds Total liabilities Fund balances: Reserved for: Notes receivable Deposits Unreserved Total fund balances Total liabilities and fund balances CITY OF LA QUINTA Non -Major Special Revenue Funds Combining Balance Sheet June 30, 2003 Lighting Arts in State Federal and Public Public Gas Tax Assistance Landscape SLEBG Quimby S afety Places $ 374,700 - - 7,852 410,853 6,254 609,243 24,898 - - - - $ 374,700 - 24,898 7,852 410,853 6,254 609,243 $ - - - - - - 1.200 7,320 24,898 - 22,082 - - 71320 24,898 - 22,082 - 1,200 374,700 (7,320) - 7,852 388,771 6,254 608,043 374,700 (7,320) - 7,852 388,771 6,254 608,043 $ 374,700 - 24,898 7,852 410,853 6,254 609,243 76 Low/ Moderate Low/ Low/ CV Violent Income Moderate Moderate r— South Coast Crime Task Housing- Bond- Bond- Totals Air Quality LLEBG Force PA No. 1 PA No. 1 PA No. 2 2003 2002 1013,612 253,575 7,828 1,714,382 742606 - 3,332,905 5,1472673 _ _ _ - 17 - 17 2,2433,769 781447 - - 78,447 106,084 3,113,565 - - 3,113565 3,0093,966 _ _ _ _ - - - 2,538 82300 - 212693 622232 - - 117,123 150,677 _ _ - 185>000 - - 185>000 - 10— 25�11)575� 29925211 53,1533,626 74,623 - 6>8271057 10,660,707 711300 25,168 - - 995,979 - - 19,309 - 21,694 - - 282994 1,040,456 - - 335668 38,351 - 995,979 8737855 - 195,309 15,788 - 21,694 - - 54,300 156,255 1,124,950 110842249 - 2,117,586 - - 2,117)586 23,1361)111 - - 1852000 - 185,000 - 1092912 255,575 527 1,810,584 742623 - 3,399,521 7,4402347 1091912 252575 527 42113,170 747623 - 5,702,107 9,576,458 109,912 253,575 29_21 51l53,626 74,623 - 6,82751057 10.1660,707 77 CITY OF LA QUINTA Non -Major Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2003 Lighting Arts in Gas Federal and Public Public Tax Assistance Landscape SLEBG Quimby S afety Places - Revenues: Taxes $ - - - - - - - Developer fees - - - - 91,926 - 228,044 Intergovernmental 558,086 30,000 - 100,713 - - - Investment income 7,985 - - 279 9,103 289 13,374 Special assessments - - 780,259 - - - - Rental income - - - Miscellaneous - - - - - - - Total revenues 566>071 30,000 780,259 100,992 101,029 289 241,418 Expenditures: Current: Public safety - - - - - 10,000 - Community services - - - - - - 2,406 Planning and development - - - - - - - Public works 569,900 - 803,714 - - - - Capital outlay - - - - - - 111.948 Total expenditures 569,900 - 803,714 - - 10,000 114,354 Excess (deficiency) of revenues over (under) expenditures (3,829) 30,000 (23,455) 100,992 101,029 (9,711) 127,064 Other financing sources (uses): Sale of capital assets - - - - - - - Transfers in - - - - - 2,000 - Transfers out - (37,320) - (100,287) (74,928) - (200,108) Total other financing sources (uses) - (37,320) - (100,287) (74,928) 2,000 (200,108) Net change in fund balances (3,829) (7,320) (23,455) 705 26,101 (7,711) (73,044) Fund balances at beginning of year 378,529 - 23,455 7,147 362,670 13,965 681,087 Fund balances (deficit) at end of year $ 374,700 (7,320) - 7,852 388,771 6,254 608,043 78 Low/ Moderate Low/ Low/ CV Violent Income Moderate Moderate South Coast Crime Task Housing- Bond- Bond- Totals Air Quaility LLEBG Force PA No. 1 PA No. 1 PA No. 2 2003 2002 5,271,524 - - 5,271,524 4,488,487 _ _ _ _ _ _ 319,970 278,061 331538 24,243 1122421 - - - 8591,001 1,11708 21,043 1,152 1,274 36,406 11,949 2,898 86,752 402,186 _ _ _ _ - - 780,259 757,619 3762863 - - 3763,863 321,145 - - - 2802752 - - 280,752 452418 352581 253,395 1132695 529653,545 11,949 2,898 7,9753,121 7,410,584 132,020 - 8,043 - - 4,103,060 8,043 - 132,020 4,1032060 - - 142,020 1,187 - - 2,406 2,028 - - 4,1115103 3738979 - - 1,3733,614 13,2931)029 - - 111,948 51,335 51,741,091 5,086,558 27,538 25,395 18 325 1,862,485 11,949 2,898 2,234,030 2,324,026 _ _ _ _ - - - 146,603 _ _ _ _ _ _ 2,000 2,000 - 32,111 - 3,2865,801 - (2,378 826) (6,110,381) (3,556,884) - 325,111 - 3,286,801) - 2,378,826) (6,108,381) (3,408,281) 27,538 (6,716) (18,325) (15,424,316) 11,949 (2,375,928) (3,874,351) (1,084,255) 82,374 321291 18,852 515372486 62,674 2,3753,928 92576,458 10,6601-713 109,912 25,575 527 45,1135,170 74,623 - 5,702,107 %576,458 79 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 562,000 562,000 558,086 (3,914) 609,016 Investment income 7,900 7,900 7,985 85 12,232 Total revenues 569,900 569,900 566,071 3,829 621,248 Expenditures: Current: Public works 569,900 569,900 569,900 - 435,298 Total expenditures 569,900 569,900 569,900 - 435,298 Excess (deficiency) of revenues over (under) expenditures - - (3,829) (3,829) 185,950 Other financing sources (uses): Transfers out - - - - (159,080) Net change in fund balances - - (3,829) (3,829) 26,870 Fund balances at beginning of year 378,529 378,529 378,529 - 351,659 Fund balances at end of year $ 378,529 378,529 374,700 3,829 378,529 M 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 301, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 1642800 164,800 301000 (134,800) 335,618 Total revenues 164,800 1641800 302000 134,800) 3357618 Other financing sources (uses): Transfers out (30,000) (164,825 37,320) 127,505 (61,814) Total other financing r-- sources (uses) _ (30,000 (164,825) 37,320 127,505 61,814) Net change in fund balances 1341,800 (25) (7,320) (7,295) 273,804 Fund balances (deficit) at beginning of year - - - - (273,804) .— Fund balances (deficit) at end of year $ 13400 (25 (7,320) (7,295) 81 CITY OF LA QUINTA Special Revenue Funds Lighting and Landscape Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Revenues: Special assessments Total revenues Expenditures: Current: Public works Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final $ 781,400 8291,700 781,400 829,700 7817400 829,700 781,400 8291700 231-455 23,455 $ 23,455 23,455 82 Variance with Prior Final Budget Year Actual Positive (negative) Actual 780,259 49,441 7571)619 780,259 49,441 757,619 803,714 25,986 857,731 803,714 25,986 857>731 (23,455) (23,455) (100,112) 23,455 - 123,567 - 23,455 23,455 "- CITY OF LA QUINTA Special Revenue Funds �- State Law Enforcement Block Grant Fund Schedule of Revenues, Expenditures and Changes -- in Fund Balances - Budget and Actual r- Year ended June 302 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Intergovemmental $ 1002287 100,287 1002713 426 1003,192 Investment income 22200 2,200 279 1,921 2,086 Total revenues 1022487 1023,487 1007992 1,495 1022278 Other financing sources (uses): Transfers out 100,287 1002287 1003,287 - 149,271 Total other financing sources (uses) 100,287 100,287 100,287 - 149,271 Net change in fund balances 21200 2,200 705 (1,495) (46,993) Fund balances at beginning of year 72147 7,147 7,147 - 54,140 Fund balances at end of year $ 9,347 92347 72852 1,495 73,147 83 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, 2003 Revenues: Developer fees Investment income Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 251)000 251>000 91,926 66,926 1261,375 81,400 8,400 9,103 703 15,699 33,400 33,400 101,029 67,629 142,074 - 2001,826 74,928) 125,898 (284,681) - 200,826 74,928 125,898 284,681 33,400 (167,426) 26,101 193,527 (142,607) 362,670 362,670 362,670 - 505,277 $ 396,070 195,244 388,771 193,527 362,670 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 305 2003 Variance with Prior Budget Final Budget Year '- Original Final Actual Positive (negative) Actual Revenues: '-' Investment income $ 300 300 289 11 422 Total revenues 300 300 289 11 422 Expenditures: Current: "- Public safety - 10,000 10,000 - - Total expenditures - 107000 102000 - - Excess (deficiency) of revenues over (under) expenditures 300 9,700 9,711 11 422 Other financing sources (uses): Transfers in - 27000 2,000 - 2,000 Total other financing sources (uses) - 2,000 21,000 - 27000 Net change in fund balances 300 (7,700) (7,711) (11) 2,422 '- Fund balances at beginning of year 13,965 132965 13,965 - 113,543 Fund balances at end of year $ 14,265 62265 6;1254 11 131> 65 -- 85 CITY OF LA QUINTA Special Revenue Funds Arts in Public Places Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Budget Original Final Revenues: Developer fees $ 87,300 87,300 Investment income 16,700 16,700 Total revenues 104,000 104,000 Expenditures: Current: Community services 5,300 5,400 Capital outlay 981,700 128,200 Total expenditures 104,000 133,600 Excess (deficiency) of revenues over (under) expenditures - 29,600 Other financing sources (uses): Transfers out - 349,361) Net change in fund balances - (378,961) Fund balances at beginning of year 681,087 681,087 Fund balances at end of year $ 681,087 302,126 :: Variance with Prior Final Budget Year Actual Positive (negative) Actual 2281-044 140,744 103,102 13,374 3,326 22,955 2417418 137,418 126,057 21,406 2,994 2,028 111,948 16,252 51,335 114,354 19,246 53,363 127,064 156,664 72,694 200,108 149,253 (96,465) (73,044) 305,917 (23,771) 681,087 - 704,858 608,043 305,917 681,087 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 211>881 213,881 33,538 113,657 361)238 Investment income 13,400 12400 2,043 643 1,972 Total revenues 232281 232281 3511581 121>300 38,210 Expenditures: -' Current: Planning and development - 5,700 8,043 2,343 97646 •-- Total expenditures - 53,700 8,043 _ 2,343 97646 Excess (deficiency) of revenues -- over (under) expenditures 231>281 17,581 27,538 92957 282564 Other financing sources (uses): Transfers out - 46,429 - 46,429 - Total other financing sources (uses) - 463,429 - 463429 - Net change in fund balances 235281 (28,848) 27,538 5611386 281>564 Fund balances at beginning of year 827374 823,374 823,374 - 5311810 Fund balances at end of year $ 1053-655 533,526 10,_ 56_ 8� 2 87 CITY OF LA QUINTA Special Revenue Funds LLEB G Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Budget Original Final Revenues: Variance with Final Budget Actual Positive (negative) Intergovernmental $ 28,000 28,000 24,243 Investment income 300 300 1,15 2 Total revenues 282300 287300 257395 Other financing sources (uses): Transfers out - - (32,111) Total other financing sources (uses) - - (32,111 Net change in fund balances 281>300 28,300 (6,716) Fund balances at beginning of year 32,291 321)291 32,291 Fund balances at end of year $ 607591 607591 251-575 (3,757) Prior Year 26,704 2,905 271,545 32,111 1,820 32,111 1,820 (35,016) 25,725 6,566 35,016 32,291 CITY OF LA QUINTA Special Revenue Funds CV Violent Crime Task Force Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Variance with Prior Budget Final Budget Year �— Original Final Actual Positive (negative) Actual Revenues: '-' Intergovernmental $ - 943,881 112,421 171,540 - Investment income - - 1, 274 1, 274 39 Miscellaneous - - - - 20,000 Total revenues - 943,881 113,695 182814 202039 Expenditures: Current: Public safety - 1202000 132,020 12,020 1,187 r Total expenditures - 120,000 132,020 12,020 11P187 '-' Net change in fund balances - (25,119) (18,325) 61)794 1811852 Fund balances at beginning of year 181P852 18,852 18,852 - - Fund balances (deficit) at end of year $ 18,852 67267 611794 183,852 RES Revenues: Taxes Developer fees Investment income Rental income Miscellaneous Total revenues 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 4,512,181 5,035,033 5,271,524 236,491 4,488,487 - - - - 48,584 200,000 200,000 36,406 (163,594) 266,302 341,000 3411000 376,863 35,863 321,145 - - 280,752 280,752 25,418 5,053,181 5,576,033 5,965,545 389,512 5,149,936 Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 4,339,700 7,54511700 4,103,060 4)339,700 7,545,700 4,1031,060 713,481 (1,969,667) 1,862,485 31,4421,640 31)729,333 3,4427640 3,729,333 3,832,152 1,420,603 150,000 150,000 - (150,000) 146,603 - 1,825,000 - (1,825,000) - (1,738,783) (3,953,426) (3,286,801) 666,625 (1,737,006) (1,588,783) (1,978,426) 3,286,801 (875,302) (3,9481,093) (1,424,316) 5,537,486 5,537,486 5,537,486 $ 4,662,184 1,589,393 4,113,170 .E 1,308,375 2,523,777 2,523,777 1,590,403 (169,800) 5,707,286 5,537,496 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 11,949 1111949 62,674 Total revenues - - 11,949 1111949 623,674 Other financing sources (uses): Transfers out - - - - (832,930 Total other financing sources (uses) - - - - 832,930 Net change in fund balance - - 11,949 11,949 (770,256) Fund balances at beginning of yea 62,674 621674 6231674 - 8322930 Fund balances at end of year $ 623,674 621)674 7410623 11,949 621,674 91 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, 2003 Budget Original Final Actual Revenues: Investment income $ - - 2,898 Total revenues - - 2,898 Other financing sources (uses): Transfers out - (2,375,928) 2,378,826 Total other financing sources (uses) - (2,375,928) 2,378,826 Net change in fund balances - (2,375,928) (2,375,928) Fund balances at beginning of year 2,375,928 2,375,928 2,375,928 Fund balances at end of year $ 2,375,928 - - Oya Variance with Prior Final Budget Year Positive (negative) Actual 2,898 16,964 2,898 16,964 2,898) (223,917) 2,898 (223,917) (206,953) 2,582,881 2)375,928 MAJOR AND NON -MAJOR DEBT SJRVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental 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. 93 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, 2003 Revenues: Investment income Rental income Miscellaneous Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ - - 80 80 455 6787955 678,955 678,955 - 680,244 9,175 97175 - 9,175 9,589 688,130 688,130 679>035 9,095 690,288 9,686 91686 9,686 285,000 285,000 285,000 394,435 3947435 3941,435 689,121 6891,121 6897121 (991) (991) (10,086) 10,615 10,615 10,615 $ 9,624 91,624 529 7,405 275,000 407,177 - 689,582 (9,095) 706 9,909 9,095 10,615 CITY OF LA QUI TA 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 302 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Taxes $ 181048,724 201,1401,132 211061099 9453,967 171,95311949 Investment income - - 204,789 2041,789 3442259 Total revenues 181,048,724 203,1402132 213,290,888 151501,756 1822983,208 -- Expenditures: Current: Planning and development 5863,870 5865,870 316,567 2703,303 285,551 Debt service: Principal 11,5673,022 21P26431940 2,2641,940 - 10,126,122 Interest 61,9911)075 73,586,832 7,4913,294 95,538 5,255,819 Payments under pass -through obligations 8,418,042 675 9,,341 9,669,282 6,059 8,194,449 -- Total expenditures 17,5633,009 20,1135983 1927421,083 371,900 23,861,941 Excess (deficiency) of revenues �. over (under) expenditures 4852715 26,149 1,54805 11)5222656 5,563,733 Other financing sources (uses): Transfers in 11,7383,783 11,738,783 1,7381,783 - 11,0901291 Transfers out - 6,000,000 6,000,000 - - Total other financing sources (uses) 1,73831783 (4,261,217 4,261,217 - 11209031291 Net change in fund balances 212242498 (4,235,068) (2,712,412) 11,5221)656 5,526,558 Fund balances (deficit) at beginning of year 4,985,471 4,98510471 4,9855,471 - 541,087 Fund balances at end of year $ 7,209,969 7502-403 2,273,059 1,522,656 45,985,471 95 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Taxes $ 7,585,373 9,440,205 9,916,962 476,757 8,100,847 Investment income 121,000 - 67,844 67,844 28,768 Total revenues 7,7063373 9,440,205 9,984,806 544,601 8,129,615 Expenditures: Current: Planning and development 161,020 161,020 149,787 11,233 123,146 Debt service: Principal 272,978 272,978 272,978 - 947,956 Interest 5,933,686 1,467,846 1,467,846 - 1,286,179 Payments under pass -through obligations 6,340,423 7,895,475 7,892,712 2,763 5,474,717 Total expenditures 12,708,107 91)7971)319 9,783,323 13,996 7,831,998 Excess (deficiency) of revenues over (under) expenditures (5,001,734) (357,114) 201,483 558,597 297.617 Other financing sources (uses): Transfers in - 338,895 338,895 - 338,442 Transfers out - (1,100,000) (1,100,000) - - Total other financing sources (uses) - (761,105) (761,105) - 338,442 Net change in fund balances (5,001,734) (1,118,219) (559,622) 558,597 636,059 Fund balances (deficit) at beginning of year (5,622,884) (5,622,884) (5,622,884) - (6,258,943) Fund balances (deficit) at end of year $ (10,624,618) (6,741,103) (6,182,506) 5583597 (5,622,884) 091 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 Major Capital Projects Funds: Parks and Recreation Fund — To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvements of the City's infrastructure. 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. Redevelopment Agency, Capital Projects Fund Area 1 — To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. The City of La Quinta has the following Non -Major 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, Civic Center Fund, Library Development Fund, Community Center Fund, Street Facility Fund, Park Facility Fund, Fire 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. County Library Development Fund — To account for the accumulation of County resources for the acquisition, construction or improvement of the City's library. 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 Fund Area 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. �yi CITY OF LA QUINTA Non -Major Capital Projects Funds Combining Balance Sheet June 30, 2003 Civic Library Community Infrastructure Transportation Center Development Center Assets Cash and investments $ 2,238,491 3,975,475 1,783,213 1,091,733 479,793 Cash with fiscal agent - - - - - Accounts receivable - - - - - Due from other funds - - - - - Advances to other funds - - - - - Total assets $ 2,238,491 3,975,475 1,783,213 1,091,733 479,793 Liabilities and Fund Balances Liabilities: Accounts payable $ - - - - - Deposits payable - - - - Due to other funds - - - - - Total liabilities - - - - - Fund balances: Unreserved: Designated for capital projects 2,238,491 3,975>475 1,783,213 1,091,733 479,793 Undesigated - - - - - Total fund balances 2,238,491 3,975,475 1,783,213 1,091,733 479,793 Total liabilities and fund balances $ 2,238,491 3,975,475 1,783,213 1,091,733 479,793 Financing Redevelopment Street Park Fire A.D.2000-1 Authority Agency Facility Facility Facili Phase VI Projects PA No.2 Totals 2003 2002 111,509 271,181 91,354 444,361 - 1,9605471 12,203,581 12,542,460 _ _ - - 1,381 605900 601,900 601,900 - 177,724 1,109,846 11,1093,846 - 11121509 27,181 912354 4441,361 - 32131,217 13,374,327 125,7822465 26,353 26,353 9,486 27,835 27,835 - _ - 13,551 54,188 545,188 23,037 1111)509 272181 91,354 444,361 - 3,077,029 131,320,139 12,759,752 _ _ _ - - (3 24 11111509 27,181 912354 444,361 - 320773,029 1323201,139 12,7592,428 1111)509 27,181 912354 444,361 - 3,131,217 13,374,327 12,7825-465 Olt CITY OF LA QUINTA Non -Major Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2003 Civic Library Community Infrastructure Transportation Center Development Center Revenues: Developer fees $ - 1,517,388 365,776 190,171 86,022 Intergovernmental - - - 200,000 - Investment income 70,822 80,281 38,796 22,947 9,993 Total revenues 70,822 1,597,669 404,572 413> 118 96,015 Expenditures: Current: General government - - 203,831 - - Planning and development - - - - - Public works - - - - - Total expenditures - - 203,831 - - Excess (deficiency) of revenues over (under) expenditures 70,822 1,597,669 200,741 413,118 96,015 Other financing sources (uses): Transfers in - - - - - Transfers out (1,894,586) (1,019,180) (36,969) (156,964) - Total other financing sources (uses) (1,894,586) (1,019,180) (36,969) (156,964) - Net change in fund balances (1,823,764) 578,489 163,772 256,154 96,015 Fund balances (deficit) at beginning of year 4,062,255 3,3965986 1,619,441 835,579 383,778 Fund balances at end of year $ 2,2381491 3,975,475 1,783,213 1,091,733 479,793 100 ram+ Financing Redevelopment Street Park Fire A.D.2000-1 Authority Agency Totals Facility Facility Facility_Phase VI Projects PA No.2 2003 2002 24,354 42425 882377 - - - 25,276,513 1,549,161 .- _ _ _ _ - - 200,000 - 2,295 543 1,130 10,156 324 67,277 304,564 426,154 261649 4,968 891507 10,156 324 675,277 227812077 12975,315 26,649 4,968 89,507 102156 324 150 - - (150 - 26,649 4,968 895507 10,006 324 84,860 22,213 1,847 434,355 324 111,509 27,181 91,354 444,361 - - 2031,831 2071,536 2173,599 217,599 2271,401 - - 68,250 2173-599 421,430 503,187 150,322 213592647 1,472,128 11308,913 1,308,913 - - (3,107,849) (4,2012107) 1,3081,913 (1,798,936) (42201,107) 1,158,591 560,711 (2,728,979) 1,918,438 1227593,428 15,488,407 3.1077>029 13,3202139 123,7591428 101 CITY OF LA QUNTA Capital Projects Funds Parks and Recreation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Budget Original Final Variance with Final Budget Actual Positive (negative) Revenues: Developer fees $ - 25100 424,762 Investment income - 20,500 28,503 Total revenues - 271,500 453,265 Expenditures: Debt service: Interest expense - - 52,523 Total expenditures - - 52,523 Excess (deficiency) of revenues over (under) expenditures - 271,500 4001)742 Other financing sources (uses): Transfers out - (5,391,927) (4,773,363) Total other financing sources (uses) - (5,391,927) (4,773,363) Net change in fund balances - (5,120,427) (4,372,621) Fund balances at beginning of year 158,962 158,962 158,962 Fund balances (deficit) at end of year $ 158,962 (4,961,465) (4,213,659) 102 173,762 8,003 181,765 (52,523) (52,523) Prior Year 374,275 58,436 432.711 129,242 432,711 618,564 (1,309,728) 618,564 (1,309,728) 747>806 (877,017) - 1,035,979 747,806 158.962 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual _. Revenues: Developer fees $ - 2,000 - (2,000) 97.150 Intergovernmental - 51)7963608 11)741,474 (4,055,134) 4,782,293 _ Miscellaneous - 2131-000 603,000 (153,000) - Total revenues - 631011,608 12801,474 (4,210,134) 4,879,443 ._ Expenditures: Capital projects - 42,071,821 15,945,630 26,126,191 57,3425978 Debt service: Principal - 110,000 1093034 966 104,409 Interest - 138,454 633216 75,238 673,841 -- Total expenditures - 4213202275 16,117,880 262202,395 57,515,228 Excess (deficiency) of revenues over (under) expenditures - (36,308,667) (14,316,406) 21,992,261 (52 635,785 Other financing sources (uses): Transfers in - 36,308,667 14,316,406 (21,992,261) 52,635,785 Total other financing sources (uses) - 36,308,667 14,316,406 (21,992)261) 52,635,785 Net change in fund balances - - - - - Fund balances at beginning of year - - - - Fund balances at end of year $ - - - - 103 CITY OF LA QUINTA 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 307 2003 Revenues: Investment income Rental income Miscellaneous Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds of tax allocation bonds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final Actual $ - 125,000 652,611 41,500 38,692 - 55,789 - 166,500 747,092 Variance with Prior Final Budget Year Positive (negative) Actual 527,611 728,658 (2,808) - 55,789 - 580,592 728,658 - 2,384,647 15559,307 825,340 4,901,601 - 2,384,647 1,559,307 825,340 4,901,601 - (2,218,147) (812,215) 1,405,932 (4,172,943) - - - - 88,000,000 - 6,000,000 6,000,000 - - - (9,359,860) (1,939,564) 7,420,296 (54,289,302) - (3,359,860) 4,060,436 75,420.1296 332710,698 - (5,578,007) 3,248,221 8,8265228 295537,755 37,842,312 37,842,312 37,842,312 - 8,304,557 $ 37,842,312 32,264,305 41,090.1533 8,826,228 37,842,312 104 CITY OF LA QUINTA Capital Projects Funds Infrastructure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year ended June 30, 2003 "- Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Invest income $ 612700 615,700 702822 %122 126,855 Total revenues 611,700 612700 70,822 %122 126,855 -- Expenditures: Current: Public works - - - - 4,670 -- Total expenditures - - - - 4,670 Excess (deficiency) of revenues r- over (under) expenditures 61,700 61,700 70,822 9,122 122,185 Other financing sources (uses): -- Transfers out 175 000) 3 783,089 (1,894,586 1,888,503 567,740 Total other financing sources (uses) 1752000) �3,7832089 (1,894,586) 1,888,503 567,740) Net change in fund balances (1132300) (3,721,389) (1,823,764) 1,897,625 (445,555) -- Fund balances at beginning of year 4,0623,255 4,062,255 45,062,255 - 4,507,810 Fund balances at end of year $ 32948,955 340,866 21238,491 1,8971,625 4,0622255 105 CITY OF LA QUINTA Capital Projects Funds Transportation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 307 2003 Revenues: Developer fees Investment income Total revenues Other financing sources (uses): Transfers out Variance with Budget Final Budget Original Final Actual Positive (negative) $ 549,000 549,000 1,517,388 968,388 231)100 23,100 80,281 57,181 572,100 572,100 1,597,669 1,025,569 (287,640) 1,3021,363 1,019,180 283,183 Total other financing sources (uses) (287,640) 1,302,363 1,019,180 Net change in fund balances 284,460 (730,263) 578,489 Fund balances at beginning of year 3,396,986 3,396,986 3,396,986 Fund balances at end of year $ 3,681,446 2,666,723 3,975,475 106 Prior Year Actual 655,885 115,507 771,392 893,966 283,183 893,966 1,308,752 (122,574) - 3,519,560 1,308,752 3,396,986 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 3 0, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 1833,000 183,000 365,776 Investment income 30,300 30).300 385,796 Total revenues 2131-300 213,300 404,572 Expenditures: Current: General government 203,831 2033,831 2031,831 Total expenditures 20331831 2033,831 2035,831 Excess (deficiency) of revenues over (under) expenditures 9,469 91469 200,741 Other financing sources (uses): Transfers out 364,687 364,687 36,969 Total other financing sources (uses) 364,687 364,687 36,969 Net change in fund balances (3552218) (355,218) 163,772 Fund balances at beginning of year 1,6192441 1,619,441 1,61911441 Fund balances at end of year $ 122643,223 1,2642223 1,783,213 182,776 8,496 549,487 44,268 191,272 593,755 207,536 207,536 191,272 386,219 327,718 - 327,718 - 5181,990 386,219 - L233,222 5182990 1,6192441 107 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 3 0, 2003 Budget Original Final Actual Revenues: Developer fees $ 1121500 112,500 190,171 Intergovernmental 200,000 2007000 200,000 Investment income 21,900 21,900 22,947 Total revenues 334,400 334,400 413,118 Other financing sources (uses): Transfers out (4,676,676) 931,894 1561964 Total other financing sources (uses) (4,676>676) 931,894 156,964 Net change in fund balances (4,342,276) (5975,494) 256,154 Fund balances at beginning of year 8351,579 835,579 835,579 Fund balances (deficit) at end of year $ 3,506,697 238,085 1,091,733 Variance with Prior Final Budget Year ositive (negative Actual 77,671 2167972 1,047 23,812 78,718 240,784 774,930 68,106 774,930 68,106 853,648 172,678 - 6627901 853,648 8352579 CITY OF LA QUINTA Capital Projects Funds �- County Library Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual : Year ended June 30, 2003 Variance with Prior �-- Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 2002000 2002000 2001,000 - - Investment income 4,000 47000 27303 1,697 - Total revenues 204,000 2041)000 202>303 1,697 - Net change in fund balances 2042000 2042000 202,303 (1,697) - .— Fund balances at beginning of year - - - Fund balances (deficit) at end of year $ 204,000 204,000 2022303 1,697 109 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual ositive (negative Actual Revenues: Developer fees $ 48,500 48,500 867022 37,522 98,093 Investment income 5,100 5,100 9,993 4,893 10)238 Total revenues 53,600 537600 96,015 42,415 108,331 Fund balances at beginning of year 3831,778 383,778 383,778 - 2751)447 Fund balances at end of year $ 437>378 4371)378 479,793 427415 3835,778 110 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 3 0, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 71500 71P500 247354 Investment income 1,000 12000 23,295 Total revenues 8,500 81500 26,649 Fund balances at beginning of year 84,860 84,860 84,860 Fund balances at end of year $ 9_,360 933)3.6_0 11131509 16,854 211,413 15,295 21,256 18,149 233,669 - 61,191 1831149 84,860 111 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 3 0, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 2,500 21,500 4,425 1,925 5,468 Investment income 200 200 543 343 596 Total revenues 2,700 211700 47968 2,268 61>064 Fund balances at beginning of year 221,213 221,213 22,213 - 16,149 Fund balances at end of year $ 24,913 242913 27,181 2,268 22,213 112 CITY OF LA QUNTA Capital Projects Funds 3 Fire Facility Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2003 Variance with Prior r Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 483,500 481)500 883,377 397877 1,843 Investment income 200 200 13,130 930 4 �- Total revenues 483-700 481700 893,507 40,807 11,847 Other financing sources (uses) : Transfers out (1,500,000) 1,5002000 - 1,50031 - -' Total other financing sources (uses) (1,500,000) 1,500,000 - 1,50031000 - Net change in fund balances (1,451,300) (1,451,300) 89,507 115402807 1,847 �- Fund balances at beginning of year 13,847 1,847 12847 - - Fund balances (deficit) at end of year $ (1,449,453) 13,449,453 91,354 17540,807 1,847 113 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 301, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 102156 10,15 6 16,555 Total revenues - - 10,15 6 10,15 6 16, 5 5 5 Other financing sources (uses): Transfers out - 142,657) 150 1421>507 539,896 Total other financing sources (uses) - 142,657 150 Net change in fund balances - (142,657) 10,006 Fund balances at beginning of year 434,355 4342355 434,355 Fund balances at end of year $ 4347355 2917698 444,361 114 142,507 539,896) 152,663 (523,341) 957,696 152,663 434,355 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, 2003 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 324 324 121P991 Total revenues - - 324 324 12,991 Other financing sources (uses) Transfers out - 131,792 - 131,792 649,524 -- Total other financing sources (uses) - 131,7�2 - 131,792 649,524 ... Net change in fund balances - (131,792) 324 132,116 (636,533) Fund balances (deficit) at beginning of year 324 324 324 - 636,209 Fund balances (deficit) at end of year $ 324 132,116 - 13211116 324 115 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, 2003 Revenues: 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 Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final Actual $ 2000 20,000 67,277 207000 20,000 671P277 314,085 322,510 217,599 3141,085 322,510 217,599 Variance with Final Budget Positive (negative) 47,277 47,277 104,911 104,911 Prior Year A _-__1 72,621 72, 621 227,401 227,401 (294,085) 302,510 (150,322) 152,188 154,780) 1,100,000 1,3451-583 1,308,913 1,100,000 1,345,583 1,308,913 805,915 1,043,073 1,158,591 1,918,438 1,918,438 1,918,438 $ 21,724,353 2,961,511 311077,029 116 (36,670) - 1,481,875 36,670 (1,481,875) 115,518 (1,636,655) - 3,555,093 115,518 1,918,438 INTERNAL SERVICE FUNDS Internal service funds are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The City of La Quinta has the following Internal Service Funds: Equipment Replacement Fund — used to account for the ultimate replacement of City owned and operated vehicles and equipment. �. Information Technology Fund — used to account for the purchase and replacement of information systems. 117 CITY OF LA QUINTA Internal Service Funds Combining Statement of Net Assets June 3 0, 2003 Assets Current assets: Cash and investments Due from other governments Capital assets, net Total assets Current liabilities: Accounts payable Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets Equipment Information Replacement Technology Totals nnnll nnn„ $ 2,473,742 475,216 2,9487958 3,006,697 15,000 - 15,000 - 556,482 372,728 929,210 1,018,484 3,045,224 847,944 3,893,168 4,025,181 7,420 291)293 361-713 40,568 55611482 372,728 929,210 11)018,484 21,4811,322 445,923 27927,245 2,966,129 $ 31,037,804 8181,651 3,856,455 3,9841>613 118 CITY OF LA QUINTA Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Assets Year ended June 302 2003 Operating revenues: Charges for services �- Miscellaneous Total operating revenues — Operating expenses: Fuel and oil Maintenance and parts Contract services Software and supplies Depreciation Other operating expenses Total operating expenses Operating income (loss) Non -operating revenues (expenses): Investment income Total non -operating revenues (expenses) Income (loss) before transfers and capital contributions Transfer in Capital contributions Changes in net assets Net assets at beginning of year Net assets at end of year Equipment Information Replacement Technology Totals 2003 2002 $ 2891,348 162,164 4511>512 304,982 2,382 - 22382 - 291,730 162,164 ' 453,894 3045982 34,213 - 341>213 301)282 119,032 - 1197032 1195212 45000 1681755 1721755 189, 5 67 - 701>749 701,749 391)060 1427057 134,460 2762517 2531>823 22249 93,535 117784 8,597 30131551 383,499 685,050 640,541 (9,821) (221,335) (231,156 335,559 57,673 15,226 722899 97,586 573,673 1531226 72,899 97,586 4731852 (206,109) (158,257) (237,973) - - - 17000,000 302099 - 301,099 1083,495 771>951 (206,109) (128,158) 870,522 21Y9593,853 120243,760 3>9847613 31,1143,091 $ 31.4037,804 8187651 3,8563,455 3,984,613 119 CITY OF LA QUINTA Internal Service Funds Combining Statement of Cash Flows Year ended June 30, 2003 Cash flows from operating activities: Cash received from other customers Cash payments to suppliers for goods and services Net cash provided by (used for) operating activities Cash flows from non -capital financing activities: Transfer from other funds Net cash provided by (used for) non -capital financing activities Cash flows from capital and related activities: Purchase of fixed assets Net cash provided by (used for) capital and related activities Cash flows from investing activities: Interest received on investments Net cash provided by (used for) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Adjustments: (Increase) decrease in due from other governments (Increase) decrease in other assets Increase (decrease) in accounts payable Net cash provided by (used for) operating activities Noncash capital, financing and investing activities: Fixed assets contributed by other funds 120 Equipment Information Replacement Technology Totals $ 276,730 162,164 438,894 304,982 (165,176) (228,697) (393,873) (347,253) 111,554 (66,533) 45,021 (42,271) 1,000,0()0 1,000,000 (1,756) (173,903) (175,659) (174,194) (1,756) (173,903) (175,659) (174,194) 57,673 15,226 72,899 97,586 57,673 15,226 72,899 97,586 167,471 (225,210) (57,739) 881,121 2,306,271 700,426 3>006,697 2,125,576 $ 2,4731742 475,216 2948958 3,006,697 $ (9,821) (221,335) (231,156) (335,559) 142,057 134,460 276,517 253,823 (15,000) - (15,000) - 12,619 5,896 18,515 - (18,301) 14,446 (3,855) 39,465 $ 111,554 (66,533) 45,021 (42,271) $ 30,099 - 30,099 108,495 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: 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. 121 CITY OF LA QUINTA Agency Funds Combining Balance Sheet June 30, 2003 Assessment Assessment Assessment Assessment District District District District No. 88-1 No. 89-2 No. 90-1 No. 91-1 Assets Cash and investments $ 881>498 481>889 228,191 477,542 Accounts receivable 1,316 1,166 57722 141-668 Total assets $ 891>814 50,055 233,913 492,210 Liabilities Due to bondholders $ 891>814 501055 233,913 4923,210 Total liabilities $ 89,814 50,055 233,913 492,210 122 Assessment Assessment Assessment District District District Totals No. 92-1 No. 97-1 No. 2000-1 2003 2002 358,764 1411>883 3977045 111740,812 179947762 7,367 2,068 12,539 4411846 - 3667131 1437951 40_84 11785,658 119947762 36630131 1431,951 40%584 13,7853,658 1,994,762 3665,131 14311951 4093,584 1,7852658 179941,762 123 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 2003 Balance at Balance at June 30, 2002 Additions Deletions June 30, 2003 ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments $ 169,330 13,719 (94,551) 88,498 Accounts receivable - 1,316 - 1,316 Total assets $ 169,330 151,035 94,551 89,814 Liabilities Due to bondholders $ 1691)330 95,595 175,111 89,814 ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments $ 238,571 105,930 (295,612) 48,889 Accounts receivable - 1,166 - 1,166 Total assets $ 238,571 107,096 295,612 50,055 Liabilities Due to bondholders $ 238,571 50,055 238,571 50,055 ASSESSMENT DISTRICT NO. 90-1 Assets Cash and investments $ 241,997 121,616 (135,422) 228,191 Accounts receivable - 5,722 - 5,722 Total assets $ 241,997 127,338 135,422 233,913 Liabilities Due to bondholders $ 241,997 152,629 160,713 233,913 (Continued) 124 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at June 30, 2002 Additions Deletions June 30, 2003 ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments $ 4211,726 258,335 (202,519) 477,542 Accounts receivable - 14,668 - 14,668 Total assets $ 4211,726 2733,003 202,519 4921,210 Liabilities Due to bondholders $ 421,726 2903,373 219,889 492,210 ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments $ 3445296 1961,271 (181,803) 358,764 Accounts receivable - 71,367 - 7,367 Total assets $ 344,296 2033,638 181,803) 3665,131 Liabilities Due to bondholders $ 3442296 2172080 195,245 3663P131 ASSESSMENT DISTRICT NO. 97-1 ` Assets Cash and investments $ 182,474 73,184 (113,775) 141,883 Accounts receivable - 2,068 - 2,068 Total assets $ 1821,474 75,252 ' 113,775 143,951 Liabilities r.. Due to bondholders $ 182,474 81,341 119,864 1433,951 (Continued) 125 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at June 30, 2002 Additions Deletions June 30, 2003 ASSESSMENT DISTRICT NO. 2000-1 Assets Cash and investments $ 396,368 256,186 (255,509) 397,045 Accounts receivable - 12,539 - 12,539 Total assets $ 396,368 268,725 (255,509 409,584 Liabilities Due to bondholders $ 396,368 284,196 270,980 409,584 TOTALS -ALL AGENCY FUNDS Assets Cash and investments $ 1,994,762 1,025,241 (1,279,191) 1,740,812 Accounts receivable - 44,846 - 44,846 Total assets $ 11,994,762 1,070,087 1,279,191 12785,658 Liabilities Due to bondholders $ 1,994,762 1,171,269 (1,380,373) 17785,658 Total liabilities $ 1,994,762 1,1711)269 1,380,373 1,785,658 126 r- CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 127 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds by Source 1 June 30, 2003 and 2002 2003 2002 Governmental funds capital assets: Land $ 56,467,549 5654671,549 Buildings and improvements 15,799,488 14,974,990 Equipment and furniture 1,054,971 1,046,049 Vehicles 161,052 1611,052 Infrastructure 313,01707 3125219,798 Construction in progress 295604,242 29,880,113 Total governmental funds capital assets $ 416,105,169 414,749,551 Investment in general fixed assets by source: Capital projects funds $365,540,462 357,156,449 Redevelopment agency 505564,707 57,5935102 Total government funds capital assets $ 416,10-5,169 414,749,551 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. 128 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds Schedule of Function and Activity' June 30, 2003 Buildings and Equipment Construction Land Improvements and Furniture Vehicles Infrastructure in Progress Totals Function and Activity General government: ^, Legislative $ - - 5,146 - - - 5,146 City manager 6,951,091 121,868 132,662 - - - 7,205,621 Economic development - - 10,208 - - - 10,208 Personnel - 25,304 4,036 - - - 29,340 Finance - - 5,976 - - - 5,976 r-- Central services - - 45,877 - - - 45,877 City clerk - - 145,411 - - - 145,411 Total general government 6,951,091 147,172 349,316 - - - 7,447,579 Public safety: Police - - 143,135 - - - 143,135 Building and safety administration - - 52,670 - - - 52,670 Code compliance - - 4,104 - - - 4,104 Animal control - - 2,546 - - - 2,546 Building - - 1,250 - - - 1,250 Emergency services - 1,792 66,805 - - - 68,597 Fire 101,392 - 3,341 161,052 - 901,951 1,167,736 Civic center building operations - 9,759,660 93,380 - - 263,715 10,116,755 .... Total public safety 101,392 9,761,452 367,231 161,052 - 1,165,666 11,556,793 Community services: Community services administration - 2,804,889 8,345 - 1,472,958 72,055 4,358,247 Parks and recreation program - - 2,591 - - - 2,591 Senior center - 2,028,163 25,064 - - - 2,053,227 -- Total community services - 4,833,052 36,000 - 1,472,958 72,055 6,414,065 Community development: Community development .... administration - 47,625 - - - 47,625 Redevelopment agency 49,415,066 840,000 - - - 309,641 50,564,707 Total community development 49,415,066 840,000 47,625 - - 309,641 50,612,332 Public works: Public works administration - 4,000 12,728 - - - 16,728 Development and traffic - - 19,289 - 301,764,863 19,430,039 321,214,191 Street maintenance and operations - 12,742 80,151 - 2,028,035 364 2,121,292 Lighting and landscape maintenance and operations - 201,070 141,029 - 7,752,011 8,626,477 16,720,587 Capital projects - - 1,602 - - - 1,602 Total public works - 217,812 254,799 - 311,544,909 28,056,880 340,074,400 Total governmental funds capital assets $ 56,467,549 15,799,488 1,054,971 161,052 313,017,867 29,604,242 416,105,169 'This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds 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. 129 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity' June 30, 2003 Governmental Funds Capital Assets Function and Activity July 1, 2002 Additions General government: Legislative $ 5,146 - City manager 7,205,621 - Economic development 10,208 - Personnel 29,340 - Finance 5,976 - Central services 45,877 - City clerk 145,411 - Total general government 7,447,579 - Public safety: Police Building and safety administration Code compliance Animal control Building Emergency services Fire Civic center building operations Total public safety Community services: 142,571 564 52,670 - 4,104 - 2,546 - 1,250 - 63,580 5,017 334,306 833,430 9,916,822 199,933 10,517,849 1,038,944 Governmental Funds Capital Assets ,Tune 30, 2003 5,146 7,205,621 10,208 29,340 5,976 45,877 145,411 7,447,579 143,135 52,670 4,104 2,546 1,250 68,597 1,167,736 in 1 is 17cc 11,556,793 Community services administration 3,142,603 1,266,431 - 4,409,034 Parks and recreation program 1,998,588 - - 1,998,588 Senior center 2,591 3,852 - 6,443 Total community services 5,143,782 1,270,283 - 6,414,065 Community development: Community development administration 47,625 - - 47,625 Redevelopment agency 57,593,102 272,978 (7,301,373) 50,564,707 Total community development 57,640,727 272,978 (7,301,373) 50,612,332 Public works: Public works administration Development and traffic Street maintenance and operations Lighting and landscape maintenance and operations Capital projects Total public works Total governmental funds capital assets 16,728 - - 16,728 320,681,370 532,821 - 321,214,191 7,846,256 - (988) 7,845,268 5,453,658 5,542,953 - 10,996,611 1,602 - - 1,602 333,999,614 6,075,774 (988) 340,074,400 $ 414,749,551 8,657,979 (7,302,361) 416,105,169 'This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds 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. 130 STATISTICAL SECTION 131 TABLE l 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 1994 $ 2,359,673 2,786,575 673,144 119,265 511,416 - 6,450,073 1995 1,565,265 3,143,697 576,304 199,115 538,610 282,113 6,305,104 1996 1,793,301 3,227,438 813,352 413,142 453,656 201,475 6,902,364 1997 2,376,935 3,442,056 889,694 469,110 455,563 170,000 7,803,358 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 3,063,640 5,636,154 1,417,529 817,460 733,579 - 11,668,362 2002 2>954,060 7,609,121 1,536,033 1,014,474 726,589 - 13,840,277 2003 3,140,576 8,202,407 2,311,436 991,558 674,450 - 15,320,427 Source: City of La Quinta Audited Financial Statements 132 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 Tom 1994 $ 4,212,604 777,241 1,600,032 469,695 (1) 585,264 1,042,872 8,687,707 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 43,547 19,110,209 2002 10,443,436 1,857,691 3,683,490 1,757,744 - 2,030,346 529,190 20,301,897 2003 11,572,985 1,9823,127 4,394,045 2,302,759 - 1,894,303 87,240 22,233,459 (1) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source Source: City of La Quinta Audited Financial Statements 133 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 ev Collection Collected Collections to Tax Levy 1994 $288,407 275,752 95.6% 900 95.9% 1995 549,273 4875043 88.7% 786 88.8% 1996 670,398 643,309 96.0% 2,312 96.3% 1997 824,073 760,350 92.3% - 92.3% 1998 886,175 980,838 110.7% - 110.7% 1999 991,001 1,1485040 115.8% - 115.8% 2000 1,001,074 1,005,983 100.5% - 100.5% 2001 1,071,723 1,0915128 101.8% - 101.8% 2002 1,218,823 1,409,828 115.7% - 115.7% 2003 1,432,528 1,437,908 100.4% - 100.4% 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 134 r•► 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 Proper. a PmpejU Value Exemptions Exemptions Value 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 45357,954 20,518,400 1,925,780,839 1996 2,043,276,054 23,801,872 2,067,077,926 61,936,774 22,399,068 2,037,742,084 1997 2,1645204,951 22,511,720 25186,716,671 6,9195376 225407,418 2,157,389,877 1998 2,305,593,987 18,8445880 2,324,438,867 95676,787 24,877,018 2,289,885,062 1999 29674,8879437 18,756,736 2,693,644,173 10,998,340 27,581,722 2,655,064,111 2000 2,665,520,656 18,7129736 2,684,233,392 119655,584 28,259,200 25644,318,608 2001 3,162,945,116 309599,753 3,1939544,869 19,757,668 30,391,400 3,143,395,801 2002 3,789,678,041 32,6075713 3,822,285,754 20,732,503 33,993,800 3,767,559,451 2003 5,4129382,710 40,940,877 55453,323,587 50,878,475 44,541,600 5,357,903,512 Source: County of Riverside 135 TABLE 5 CITY OF LA QUINTA Property Tax Rates - Direct and Overlapping Governments Last Five Fiscal Years (per $100 of Assessed Value) 2002/03 2001/02 2000/01 1999/00 1998/99 General 1.00000 1.00000 1.00000 1.00000 1.00000 County of Riverside 0.00938 0.00985 - - - Riverside County Office of Education 0.00938 0.00985 - - - Desert Sands Unified 0.46088 0.35177 0.09750 0.09750 0.09750 Coachella Valley Unified School District 0.06845 0.05022 - - - Coachella Valley Water District 0.62057 0.56885 0.02080 0.02080 0.02080 Coachella Valley Recreation & Park District 0.07856 - - - - Total Tax Rate 2.24722 1.99054 1.11830 1.11830 1.11830 Source: County of Riverside 136 r-- 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 Uj to Billi 1994 $ 766,011 7345560 95.9% 1995 836,502 737,700 88.2% 1996 7291,647 6991,351 95.9% 1997 791,012 7575256 95.7% 1998 791,012 761,109 96.2% 1999 790,532 7702164 97.4% 2000 833,630 800,825 96.0% 2001 835,577 803,756 96.2% 2002 150689994 9929226 92.8% 2003 860,684 790,555 91.9% (1) Includes Prepayments and Foreclosures Source: Muni Financial Services 137 CITY OF LA QUINTA Schedule of Direct and Overlapping Bonded Debt June 30, 2003 Direct and Overlapping Bonded Debt Riverside County General Fund Obligations Riverside County Board of Education Certificates of Participation Desert Sands Unified School District Certificates of Participation Desert Sands Unified School District Lease Tax Obligation Desert Sands Unified School District Community Facilities No.I Desert Sands Unified School District Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation Coachella Valley County Water District, I.D. #55 Coachella Valley County Water District, I.D. #58 Coachella Valley Unified School District Certificates of Participation Coachella Valley Unified School District Coachella Valley Water District, AD No. 68 Coachella Valley Recreation and Park District Certificates of Participation City of La Quinta General Fund Obligations (Finance Authority) City of La Quinta 1915 Act Bonds Total Direct and Overlapping Bonded Debt Note: (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue, tax allocation bonds and nonbonded capital lease obligations. Source: California Municipal Statistics, Inc. Percent .tune 30, 2003 Applicable Bonded Debt 0.93 8% $5,969,143 0.938% 135,640 8.175% 1,344,788 8.175% 3,492,360 100.000% 2,200,000 8.175% 5,068,500 6.338% 722,532 63.718% 4,861,683 4.163% 189,000 6.845% 1,060,975 6.845% 1,248,479 86.247% 2,207,903 7.856% 212,898 100.000% 7,190,000 100.000% 4.180.000 $40,083,901 (1) 138 r-� CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 2003 Net Assessed Valuation Debt Limit - 15 % of Assessed Valuation r Amount of Debt Applicable to Debt Limit Legal Debt Margin $5,357,903,512 803,685,527 -0- $803,685,527 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 139 TABLE 9 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Ten Fiscal Years Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1994 $ 548,352 - 548,352 548,352 1.00 1995 699,477 155,000 5441,477 699,477 1.00 1996 696,402 160,000 5363402 696,402 1.00 1997 607,950 1701000 437,950 607,950 1.00 1998 734,623 285,000 449,623 734,623 1.00 1999 684,573 2455000 439,573 684,573 1.00 2000 679,670 25000 429,670 679,670 1.00 2001 678,955 2605000 418,955 678,955 1.00 2002 6821,178 275,000 407,178 682,178 1.00 2003 679,435 285,000 3945435 679,435 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 140 CITY OF LA QUINTA Demographic Statistics Last Ten Fiscal Years �- Total City Fiscal Year Population Riverside Population -- Ending Square Percent County Percent June 30 Miles (1) Population (2) Change Population (2) Of County 1994 28.2 16,680 7.0% 1,357,400 1.2% •— 1995 31.2 179591 5.5% 153935500 1.3% 1996 31.2 189050 2.6% 1,381,879 1.3% 1997 31.2 185931 4.9% 1,3795956 1.4% 1998 31.2 201,444 8.0% 19441,237 1.4% 1999 31.2 21,763 6.5% 1,473,307 2.2% _. 2000 31.2 245240 10.77% 1,5229900 1.6% 2001 r 31.2 26,321 8.58% 1,5455387 1.7% 2002 31.8 28,715 9.09% 155459387 1.9% 2003 34.8 301,452 6.00% 1,653,564 1.8% Source: (1) City of La Quinta (2) State of California Department of Finance 141 Fiscal Year Ending June 3 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 (1) Source: CITY OF LA QUINTA Property Value and Construction Activity Last Ten Fiscal Years Property Value 1 $ 1,872,768,156 1,927,834,908 2,043,276,054 251645204,951 2,305,593,987 2,674,887,437 25665,520,656 3,162,945,116 3,789,678,041 5,412,382,710 Commercial Construction Units Value 13 6013796 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 155289,134 66 65739,720 69 2751845625 From Schedule of Net Taxable Value City of La Quinta 142 TABLE 11 Residential Construction Units Value 531 795318,969 238 29,163,494 336 53,973,239 322 36,971,047 461 70,403,691 770 1325521,054 1,590 292,524,629 1,069 195,774,186 858 1711,189,651 831 176,51402 CITY OF LA QUINTA Principal Taxpayers June 30, 2003 Taxpayer Tyne 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 Source: City of La Quinta 143 CITY OF LA QUINTA Major Employers June 30, 2003 Employer La Quinta Hotel and Golf Resort PGA West Desert Sands Unified School District Wal-Mart Rancho La Quinta The Home Depot Lowe's Home Improvement Stater Brothers Imperial Irrigation District Vons Ralph's Tradition City of La Quinta Cliff House Source: City of La Quinta 144 Employees 1,500 1,100 550 250 200 180 150 126 110 103 100 97 76 75 TABLE 13 Activity Resort Hotel Golf Resort School District Administration Retailer Golf Resort Retailer Retailer Groceries Utility Company Groceries Groceries Golf Resort Municipal Government Restaurant TABLE 14 CITY OF LA QUINTA Schedule of Insurance in Force .-- June 30, 2003 Company Name Policy.Number Coverage Limits Term Premium Hartford PEBAO7068 Employee Dishonesty, $1,000,000 12/03/02 - 03 $2,750 Forgery, Computer Fraud General Star IAG371828C All Risk Property Insurance 29,307,900 07/01/03 - 04 27,524 Indemnity & Westchester D35925612 Including Auto Physical Damage Fire (Excluding Earthquake) Royal Indemnity K2HQ407478 Earthquake & Flood 7,500,000 02/07/02 - 03 15,780 Real & Personal Property -- Including Contigent Tax Interruption California Certificate #5 Comprehensive General $0 Deductible Retention 07/01/03 - 04 260,611 Joint Powers Liability $50 Million Insurace Authority California Certificate Worker's Compensation 5,000,000 07/01/03 - 04 175,328 Joint Powers #5009-056 Insurance Authority Source: City of La Quinta 145 TABLE 15 CITY OF LA QUINTA Miscellaneous Statistical Data June 30, 2003 Date of Incorporation ...................May 2, 1982 Type of City ................... Charter City Form of Government .............. Council / Manager City Employees .................... 76 City Land Area (square miles) .................... 34.8 Population .................... 305450 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 .................. 41 Number of Traffic Signs .................... 2,672 Number of Street Lights .................... 69 Public Schools .................... 4 Private Schools .................... 1 Churches .................... 3 Banks / Savings and Loan .................... 7 Number of Single Family Units - Detache .................... 125368 Number of Single Family Units - Attached .................... 2,360 Number of Multiple Family Units .................... 953 Number of Mobile Homes .................... 259 Source: City of La Quinta 146 CITY OF LA QUINTA General Fund Balance Trends Last Ten Fiscal Years Fiscal Year Ending Reserved Unreserved Totals June 30 Decimated Undesian_ ated 1994 $ 4,3543,139 3,792,864 -- 8,147,003 1995 6,100,309 4,2285680 -- 105328,989 1996 6,680,048 5,686,027 -- 12,366,075 1997 852025641 55936,591 -- 1451395232 1998 8,915,742 855685017 -- 17,483,759 1999 8,879,558 14,439,998 -- 23,319,556 2000 105565,563 18,111,835 -- 28,677,398 2001 11,746,211 23,878,259 -- 355624,470 2002 155351,251 25,5223,073 -- 40,873,324 2003 21,09%910 261,584,773 -- 47,684,683 Source: City of La Quinta 147 (This page intentionally left blank)