2005 12 06 FAe4 Qx
o�Z wai
CJ
7
G� OF
FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
DECEMBER 6, 2005
Beginning Resolution No. FA 2005-03
CALL TO ORDER
Roll Call:
Board Members: Henderson, Osborne, Perkins, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time members of the public may address the Financing Authority on items that
appear within the Consent Calendar or matters that are not listed on the agenda. Please
complete a "request to speak" form and limit your comments to three minutes. When you
are called to speak, please come forward and state your name for the record. Please
watch the timing device on the podium.
For all Business Session matters or Public Hearings on the agenda, a completed "request to
speak" form should be filed with the City Clerk prior to beginning consideration of that
item.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1 . APPROVAL OF MINUTES OF NOVEMBER 15, 2005. 1
Financing Authority Agenda 1 December 6, 2005
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF CONTINUING DISCLOSURE FOR THE LA QUINTA FINANCING
AUTHORITY 1996 LEASE REVENUE REFUNDING BONDS AND 2004 LOCAL
AGENCY REVENUE BONDS FOR FISCAL YEAR END JUNE 30, 2005.
BUSINESS SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Financing Authority to be held on
December 20, 2005 at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La
Quinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Financing Authority meeting of December 6, 2005, was posted
on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin
boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1 , on Friday, December 2,
2005.
DATED: December 2, 2005
JUNE S. GREEK, CMC, City Clerk
City of La Quinta, California
Financing Authority Agenda 2 December 6, 2005
4 ZP Qu&r,5u
OF C��O
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 6, 2005
BUSINESS SESSION:
ITEM TITLE: Approval of Annual Continuing
Disclosure for the La Quinta Financing Authority CONSENT CALENDAR:
1996 Lease Revenue Refunding Bonds and 2004 STUDY SESSION:
Local Agency Revenue Bonds for Fiscal Year End
June 30, 2005 PUBLIC HEARING:
RECOMMENDATION:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local Agency
Revenue Bonds for Fiscal Year End June 30, 2005.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 10, 1994, the Securities and Exchange Commission adopted
amendments to existing federal regulations (Rule 15c2-12) for bonds issued after
July 3, 1995, requiring issuers of municipal securities (Bond issues) to do the
following annually for each bond issue:
1. Prepare official statements meeting the content requirement of Rule
15c2-12.
2. File certain financial information and operating data with national and
state repositories each year.
3. Prepare announcements of the significant events including payment
defaults, defeasances and draws on a reserve fund as the events
occur.
Attachment 1 is the 2004/05 Annual Continuing Disclosure Statement for the
La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds prepared in
accordance with the three aforementioned requirements. Additionally, no
announcement of significant events was necessary for Fiscal Year 2004/05.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Financing Authority include:
1. Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds for Fiscal Year
End June 30, 2005; or
2. Do not approve, receive and file the Annual Continuing Disclosure for the
La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds for
Fiscal Year End June 30, 2005; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1 . 2004/05 Annual Continuing Disclosure Statement for the
La Quinta Financing Authority
2
ATTACHMENT 1
MuniFinancial
Attn: Federal Compliance Division
27368 Via Industria, Suite 110
Temecula, California 92590
(951) 587-3510 Fax
(951) 587-3500 Bus.
RE: ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENTS FOR
FISCAL YEAR ENDING 2005
FOR: Local Agency Revenue Bonds 2004 Series A
1996 Lease Revenue Refunding Bonds (La Quinta City Hall Project
La Quinta Redevelopment Project Area No. 1, Tax Allocation Refunding Bonds, Series 1998
La Quinta Redevelopment Project Area No. 2, Tax Allocation Refunding Bonds, Series 1998
La Quinta Redevelopment Project Area No. 1, Tax Allocation Refunding Bonds, Series 2001
La Quinta Redevelopment Project Area No. 1, Tax Allocation Bonds, Series 2002
La Quinta Redevelopment Project Area No. 1, Tax Allocation Bonds, Taxable Series 2003
The Continuing Disclosure Covenants outline the Significant Events that must be reported if they are
deemed material. I have investigated each of these items and have no knowledge that any of the events listed
below have occurred or have not been previously reported.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the security.
7. Modifications to rights of security holders.
S. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the securities.
11. Rating changes.
I certify that the Annual Continuing Disclosure Information Statements do not contain any untrue statement
of material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they are made, not misleading.
In addition, the above referenced Annual Continuing Disclosure Information Statements have been approved
to be disseminated to the Nationally Recognized Municipal Securities Information Repositories (the
"NRMSIRs"), the State Information Depositories (where applicable), and to be made available by
MuniFinancial along with any additionally required documents on the internet at urww.muni.com.
CITY OF -LA QUINTA
Signature:-
Jahn Falconer, Finance Director
Date:1 !
3
LA QUINTA FINANCING AUTHORITY
$8, 790, 000
1996 LEASE REVENUE REFUNDING BONDS
(LA QUINTA CITY HALL PROJECT)
Riverside County, California
Dated: November 15, 1996
CUSIP: 50419R
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at:
MuniFinancial
www.muni.com
0
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(619) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial*
Temecula, California 92590
(951) 587-3500
Report available for viewing C�
www.muni.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker, LLP
Costa Mesa, Ca►ifornia
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 615-6047
* In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
INTRODUCTION
Pursuant to an Official Statement dated November 13, 1996 the La Quinta Financing
Authority (the "Authority") issued $8,790,000 1996 Lease Revenue Refunding Bonds
(La Quinta City Hall Project), (the "Bonds") to refinance the Authority's previously issued
Local Agency Revenue Bonds, Series 1991 (City Hall Project).
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
The Bonds are payable solely from the lease payments relating to the La Quinta City
Hall Project, and amounts held in certain funds and accounts established under a trust
agreement. The City has covenanted to provide for the lease payments in its annual
budget and to make the necessary appropriation for such payments. However, the
Bonds and the obligation of the City to make lease payments does not constitute an
obligation for which the City is obligated to levy or pledge any form of taxation. Neither
the Bonds nor the obligation of the City to make lease payments constitutes an
indebtedness of the City, the State of California or any political subdivisions thereof
within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to
a covenant made by the City and the Authority for the benefit of the holders of the
Bonds and includes the information specified in a Continuing Disclosure Certificate. For
further information and a more complete description of the City, the Authority and the
Bonds, reference is made to the Official Statement.
The information set forth herein has been furnished by the Authority and the City and by
sources, which are believed to be accurate and reliable but is not guaranteed as to
accuracy or completeness. Statements contained in this Annual Continuing Disclosure
Information Statement which involve estimates, forecasts, or other matters of opinion,
whether or not expressly so described herein, are intended solely as such and are not
to be construed as representations of fact. Further, the information and expressions of
opinion contained herein are subject to change without notice and the delivery of this
Annual Continuing Disclosure Information Statement will not, under any circumstances,
create any implication that there has been no change in the affairs of the Authority and
the City or any other parties described herein.
2004105 — 1996 Lease Rev City of La Quinta
M,
A
/I. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds
1996 Lease Revenue Bonds
B. FUND BALANCES
Fund
Reserve Fund �')
of November 7, 2005
$6,245,000.00
As of November 7, 2005
N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the MBIA Insurance Corporation.
Ill. FINANCIAL INFORMATION
The audited financial statements for the City for the Fiscal Year Ended June 30, 2005
will be separately filed with the Nationally Recognized Municipal Securities Information
Repositories and are hereby incorporated by reference into this Annual Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. GENERAL FUND EXPENDITURES BY FUNCTION
Fiscal
Year
Ending
General
Public
Public
Community
Planning &
Capital
June 30
Government
Safety
Works
Service
Development
Projects
Total
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
0
8,327,740
1999
2,473,241
4,468,294
1,546,650
732,741
626,074
0
9,847,000
2000
2,814,604
4,992,811
1,704,996
768,528
748,949
0
11,029,888
2001
3,063,641
5,636,154
1,417,528
817,460
733,579
0
11,668,362
2002
2,954,060
7,609,121
1,536,033
1,014,474
726,589
0
13,840,277
2003
3,140,576
8,202,407
2,311,436
991,558
674,450
0
15,320,427
2004
3,892,220
9,672,180
3,130,794
1,025,397
750,444
0
18,444,035
2005
3,765,511
12,364,583
4,794,685
1,104,509
862,890
0
22,892,178
2004105 — 1996 Lease Rev City of La Quinta 2
7
B. GENERAL FUND REVENUE BY SOURCE
Fiscal Year
Ending
June 30
Taxes
Licenses
and
Permits
Inter-
Governmental
Charges
for
Services
Litigation
Settlement
Proceeds
Interest
Miscellaneous
Total
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
0
1,868,073
106,371
17,667,475
2001
10,331,970
2,057,423
2,164,891
1,998,589
0
2,513,789
43,545
19,110,207
2002
10,443,436
1,857,691
3,683,490
1,757,744
0
2,030,346
529,190
20,301,897
2003
11,572,985
1,982,127
4,394,045
2,302,759
0
0
1,894,03
2,335,154
87,240
109,338
22,233,459
26,240,301
2004
2005
13,184,050
16,762,028
3,096,145
3,226,167
4,895,986
7,552,035
2,619,578
3,402,602
0
3,238,808
513,030
34,694,670
(1) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source
C.
Fiscal Year
Ending
June 30
PROPERTY TAX LEVIES AND COLLECTIONS
Total Current Percent
Tax Tax of Levy
Levy Collection Collected
Delinquent
Tax
Collections
Total
Collections
to Tax Levy
1995
$549,273
$487,043
88.7%
$786
88.8%
1996
670,398
643,309
96.0%
2,312
96.3%
1997
824,073
760,350
92.3%
0
92.3%
1998
886,175
980,838
110.7%
0
110.7%
1999
991,1001
1,148,040
115.8%
0
115.8%
2000
1,001,074
1,005,983
100.5%
0
100.5%
2001
1,071,723
1,091,128
101.8%
0
101.8%
2002
1,218,823
1,409,828
115.7%
0
115.7%
2003
1,432,528
1,437,908
100.4%
0
100.4%
2004
1,724,861
1,767,764
102.5%
0
102.5%
2005
2,282,092
2,119,641
92.9%
0
92.9%
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 no -low and supplemental property taxes.
Source: County
of Riverside
2004105 - 1996 Lease Rev City of La Quinta
3
D. SCHEDULE OF NET TAXABLE VALUE
Fiscal
Year
Assessed
Less
Less
Net
Ending
Secured
Unsecured
Property
Property
Homeowner's
Taxable
June 30
Property
Property
Value
Exemptions
Exemptions
Value
1995
$1,927,834,908
$22,822,285
$1,950,657,193
$4,357,954
$20,518,400
$1,925,780,839
1996
2,043,276,054
23,801,872
2,067,077,926
6,936,774
22,399,068
2,037,742,048
1997
2,164,204,951
22,511,720
2,186,716,671
6,919,376
22,407,418
2,157,389,877
1998
2,305,593,987
18,844,880
2,324,438,867
9,676,787
24,877,018
2,289,885,062
1999
2,674,887,437
18,756,736
2,693,644,173
10,998,340
27,581,722
2,655,064,111
2000
2,665,520,656
18,712,736
2,684,233,392
11,655,584
28,259,200
2,644,318,608
2001
3,162,945,116
30,599,753
3,193,544,869
19,757,668
30,391,400
3,143,395,801
2002
3,789,678,041
32,607.713
3,822,285,754
20,732,503
33,993,800
3,767,559,451
2003
5,412,382,710
40,940,877
5,453,323,587
50,878,475
44,541,600
5,357,903,512
2004
6,289,493,552
44,014,548
6,333,508,100
67,025,403
46,011,600
6,220,471,097
2005
7,856,383,375
72,554,357
7,928,937,732
66,951,088
48,120,058
7,813,866,586
Source: County of Riverside
E. PROPERTY TAX RATE - DIRECT AND OVERLAPPING GOVERNMENTS
(Per $100 of Assessed Value)
2000/01 2001/02 2002/03 2003/04 2004/05
General
1.00000
1.00000
1.00000
1.00000
1.00000
County of Riverside
-
0.00985
0.00938
0.00905
0.00905
Riverside County Office of Education
-
0.00985
0.00938
0.00905
0.01013
Desert Sands Unified
0,09750
0.35177
0.46088
0.27443
0.20216
Coachella Valley Unified School District
-
0.05022
0.06845
0.09267
0.17094
Coachella Valley Water District
0.02080
0.56885
0.62057
0.55458
0.55329
Coachella Valley Recreation & Park District
-
-
0.07856
0.07762
0.08819
Desert Community College District
-
-
-
-
0.04948
Total Tax Rate
1.11830
1.99054
2.24722
2.01740
2.08324
Source: County of Riverside
F. SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Year Ended
June 30
Special Assessment
Billings
Special Assessment
Collections
Ratio of Collections
to Billings
1995
$836, 502
$737, 700
88.2%
1996
729,647
699,351
95.9%
1997
791,012
757,256
95.7%
1998
791,012
761,109
96.2%
1999
790,532
770,164
97.4%
2000
833,630
800,825
96.0%
2001
835,577
803,756
96.2%
2002
1,068,994
992,226
92.8%
2003
860,684
790,555
91.9%
2004
871,833
804,818
92.3%
2005
457,277
413,679
90.5%
(1) Includes Prepayments and Foreclosures
Source: Riverside County Assessor's Office as compiled by Muni Financial.
2004105 - 1996 Lease Rev City of La Quinta
0
G. SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
Direct and Overlapping Bonded Debt
Percent
Applicable
June 30, 2005
Bonded Debt
Riverside County General Fund Obligations
1.013%
1.013%
$6,294,271
123,738
Riverside County Board of Education Certificates of Participation
7.720%
1,139,858
Desert Sands Unified School District Certificates of Participation
Desert Sands Unified School District Lease Tax Obligation
7.720%
1,726,578
Desert Sands Unified School District Community Facilities District No. 1
100.000%
2,105,000
Desert Sands Unified School District
7.720%
10,574,084
Coachella Valley County Water District, I.D. #71 Storm Water Unit
Certificates of Participation
5.286%
75.449%
356
909,149
4,193,712
Coachella Valley County Water District, I.D. #55
5.449%
193,712
Coachella Valley County Water District, I.D. #58
Coachella Valley Unified School District Certificates of Participation
17.094%
3,135,894
Coachella Valley Unified School District
17.094%
86.247%
3,027,224
2,108,739
Coachella Valley Water District, AD #68
Coachella Valley Recreation and Park District Certificates of Participation
8.819%
235,026
City of La Quinta General Fund Obligation (Finance Authority)
100.000%
6,575,000
City of La Quinta 1915 Act Bonds
100.000%
4.948%
2,720,000
3,482,248
Desert Community College District
$49,044.877
Total Direct and Overlapping Bonded Debt
(1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and
tax allocation bonds and non -
bonded capital lease obligations.
Source: California Municipal Statistics, Inc.
H. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2005)
Net Assessed Valuation $7,813,866,586
Debt Limit - 15 % of Assessed Valuation 1,172,079,988
Amount of Debt Applicable to Debt Limit 0
Legal Debt Margin $1,172,079,988
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.
2004105 — 1996 Lease Rev City of La Quinta
10
I. REVENUE BOND COVERAGE
Local Agency
Revenue Bonds (City
Hall Project)
Fiscal Year
Debt Service Requirements
Ending
Revenue Available
June 30
for Debt Service
Principal
Interest
Total
Coveraq(
1995
$699,477
$155,000
$544,477
$699,477
1.00
1996
696,402
160,000
536,402
696,402
1.00
1997
607,950
170,000
437,950
607,950
1.00
1998
734,623
285,000
449,623
734,623
1.00
1999
684,573
245,000
439,573
684,573
1.00
2000
679,670
250,000
429,670
679,670
1.00
2001
678,955
260,000
418,955
678,955
1.00
2002
682,178
275,000
407,178
682,178
1.00
2003
679,435
285,000
394,435
679,435
1.00
2004
680,830
300,000
380,830
680,830
1.00
2005
681,220
315,000
366,220
681,220
1.00
Note: Revenue available consists of lease
payments made by the City of La Quinta to the
La Quinta
Financing Authority.
J. DEMOGRAPHIC STATISTICS
Fiscal Year
Ending
Square
Miles(l)
Population IZt
Total
Population
Percent
Change
Riverside
County
Population Isl
City Population
Percent of County
1995
31.2
17,591
5.5%
1,393,500
1.3%
1996
31.2
18,050
2.6%
1,381,879
1.3%
1997
31.2
18,931
4.9%
1,379,956
1.4%
1998
31.2
20,444
8.0%
1,441,237
1.4%
1999
31.2
21,763
6.5%
1,473,307
2.2%
2000
31.2
24,240
10.8%
1,522,900
1.6%
2001
31.2
26,321
8.6%
1,545,387
1.7%
2002
31.8
28,715
9.1%
1,545,387
1.9%
2003
34.8
30,452
6.0%
1,653,564
1.8%
2004
35.1
32,522
6.8%
1,782,650
1.8%
2005
35.1
36,145
9.20%
1,871,950
1.9%
Source: (1) City of La Quinta
(2) State of California
Department of Finance
(3) Population
Division,
U.S. Census Bureau
2004105 - 1996 Lease Rev City of La Quinta
6
11
f14
L
M
PROPERTY VALUE AND CONSTRUCTION ACTIVITY
Fiscal Year
Ending
June 30
Property
Value �'
Commercial Construction
Units Value
Residential Construction
Units Value
1995
$1,927,834,908
4
$1,100,119
238
$29,163,494
1996
2,043,276,054
8
1,018,940
336
53,973,239
1997
2,164,204,951
11
1,876,747
322
36,971,047
1998
2,305,593,987
14
2,689,642
461
70,403,691
1999
2,674,887,437
19
8,894,767
770
132,521,054
2000
2,665,520,656
40
13,071,684
1,590
292,524,629
2001
3,162,945,116
39
15,289,134
1,069
195,774,186
2002
3,789,678,041
66
6,739,720
858
171,189,651
2003
5,412,382,710
69
27,184,625
831
176,514,682
2004
6,289,493,552
154
38,232,129
1,406
244,446,101
2005
7,856,383,375
120
26,262,862
1,838
311,189,301
(1) From Schedule of Net Taxable Value
PRINCIPAL TAXPAYERS (JUNE 30, 2005)
Taxpayer Type of Activity
KSL Desert Resort Inc.
Toll California
Sunrise Desert Partners
TD Desert Development
ND La Quinta Partners
Lennar Homes of California Inc.
Coral Mountain
Quarry Ranch At La Quinta Inc
Aventine Development
CRV La Quinta 70 Ltd Partnership
Commercial/Hotel/Vacant Land
Vacant Land
Condominiums/Vacant Land
Residential
Vacant Land
Vacant Land
Vacant Land
Vacant Land
Residential
Vacant Land
MAJOR EMPLOYERS (JUNE 30, 2005)
Emolover Employees Activi
La Quinta Hotel and Golf Resort
1,500
Resort Hotel
PGA West
1,100
Golf Resort
Desert Sands Unified School District
550
School District Administration
Wal-Mart
250
Retailer
Rancho La Quinta
200
Golf Resort
The Home Depot
180
Retailer
Lowe's Home Improvement
150
Retailer
Stater Brothers
126
Groceries
Imperial Irrigation District
110
Utility Company
Vons
103
Groceries
Ralph's
100
Groceries
Tradition
97
Golf Resort
City of La Quinta
78
Municipal Government
Cliff House
75
Restaurant
2004105 — 1996 Lease Rev City of La Quinta
7
12
N. SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2005)
Company
Name
Policy
Number
Coverage
Limits
Term
Premium
Hartford
PEBA07068
Employee Dishonesty,
$1,000,000
12/03/04 — 05
$3,000
Forgery, Computer Fraud
Lexington
062-3314
All Risk Property Insurance
32,600,000
07/01/05 — 06
30,000
Including Auto Physical Damage
(Excluding Earthquake)
Landmark Amer
K2HQ407478
Earthquake & Flood, Real &
7,500,000
02/07/05 —06
29,500
Personal Property Including
Contingent Tax Interruption
California
Certificate #5
Comprehensive General Liability
$0 Deductible
07/01/05 — 06
253,672
Joint Powers
Retention
Insurance Authority
$50 Million
California
Certificate
Worker's Compensation
5,000,000
07/01/05 — 06
235,397
Joint Powers #5009-056
Insurance Authority
0. MISCELLANEOUS STATISTICAL DATA (JUNE 30, 2005)
Date of Incorporation
May 2, 1982
Type of City
Charter City
Form of Government
Council / Manager
City Employees
83
City Land Area (square miles).
35.1
Population
36,145
Number of Parks
12
Total Acreage
234
Miles of Streets
118.0
Miles of Bike Paths
9.7
Number of Major Intersections
46
Number of Traffic Signals and Safety Lighting
43
Number of Traffic Signs
2,749
Number of Street Lights
73
Public Schools
4
Private Schools
1
Churches
3
Banks / Savings and Loan
7
Number of Single Family Units - Detached
14,393
Number of Single Family Units - Attached
2,360
Number of Multiple Family Units
1,352
Number of Mobile Homes
259
2004105 — 1996 Lease Rev City of La Quinta
t3
13
P. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2005.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
2004105 — 1996 Lease Rev City of La Quinta
LA QUINTA FINANCING AUTHORITY
$90, 000, 000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
CUSIP: 50420A
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at:
MuniFinancial �1
www.muni.com
15
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-quinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951) 587-3500
_Report available for viewing Cad
www.muni.com
UNDERWRITER
Stone & Youngberg
BOND COUNSEL
Stradling, Yocca, Carlson & Rauth
Newport Beach, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 613-6047
In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
16
1. INTRODUCTION
Pursuant to an Official Statement dated June 21, 2004, the La Quinta Financing Authority (the
"Authority") issued $90,000,000 Local Agency Revenue Bonds, 2004 Series A (the "Bonds") to
provide a loan to the La Quinta Redevelopment Agency (the "Agency") to finance affordable low
and moderate housing in or of benefit to the Community Redevelopment Project Areas No. 1
and 2 (collectively the "Redevelopment Projects") and to advance refund the Agency's
Redevelopment Project Areas No. 1 and No. 2, 1995 Housing Tax Allocation Bonds of which
$19,955,000 are currently outstanding (the 1995 Bonds").
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is located
in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los Angeles.
Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the City.
Redevelopment Project Area No. 2 (the "Project Area No. 2") encompasses an area of
approximately 3,116 acres north of Project Area No. 1. The objective of the Agency is to
eliminate or reduce the many instances of economic, physical or social blight presently existing
within the boundaries of the Redevelopment Projects. The Bonds were sold by the Agency for
the purpose of increasing, improving and/or preserving the supply of low and moderate income
housing within the Redevelopment Projects.
The Bonds are special obligations of the Agency and are secured by a pledge of Housing Set -
Aside Tax Revenues, as defined in the Official Statement. The Agency also has outstanding
Tax Allocation Refunding Bonds, Series 1994 (the "1994 Bonds"), a portion of the debt service
on which is payable prior to the Bonds from Tax Revenues required to be deposited in the
Project Area No. 1 Low and Moderate Income Housing Fund. The Bonds are not a debt of the
City, the State of California, or any of its political subdivisions and neither the City, the State of
California, nor any of its political subdivisions is liable. The Bonds do not constitute
indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Information Statement is being provided pursuant to a covenant made by the
Agency for the benefit of the holders of the Bonds and includes the information specified in a
Continuing Disclosure Certificate. For further information and a more complete description of the
Agency and the Bonds, reference is made to the Official Statement.
The information set forth herein has been furnished by the Agency and by sources, which are
believed to be accurate and reliable but is not guaranteed as to accuracy or completeness.
Statements contained in this Annual Information Statement which involve estimates, forecasts,
or other matters of opinion, whether or not expressly so described herein, are intended solely as
such and are not to be construed as representations of fact. Further, the information and
expressions of opinion contained herein are subject to change without notice and the delivery of
this Annual Information Statement will not, under any circumstances, create any implication that
there has been no change in the affairs of the Agency or any other parties described herein.
2004105, 2004 Revenue City of La Quinta
17
ll. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of November 7, 2005
Local Agency Revenue Bonds, 2004 Series A $89,265,000.00
B. FUND BALANCES
Fund As of November 7, 2005
Reserve Fund i1i N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond.
Ill. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2005
will be separately filed with the Nationally Recognized Municipal Securities Information
Repositories and are hereby incorporated by reference into this Annual Information
Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Redevelopment Project Areas.
Proiect Area No. 1
Fiscal
Year
Secured
Value
Unsecured
Value
Utility
Value
Total Taxable
Value
Taxable Value
Above Base (')
Gross Tax
Increment
1996/97
$1,297,020,107
$13,821,291
$0
$1,310,841,398
$1,111,443,165
$11,344,856
1997/98
1,383,340,327
13,157,051
0
1,396,497,378
1,197,099,145
12,161,894
1998/99
1,436,942,643
8,594,039
0
1,445,536,682
1,246,138,449
12,877,280
1999/00
1,627,578,717
8,034,814
0
1,635,613,531
1,436,215,298
15,659,371
2000/01
1,927,812,440
14,948,366
0
1,942,760,806
1,743,362,573
18,685,564
2001/02
2,287,724,601
14,486,563
0
2,302,211,164
2,102,812,931
20,929,840
2002/03
2,688,732,575
13,980,069
0
2,702,712,644
2,503,314,411
26,357,623
2003/04
3,062,917,787
13,537,804
0
3,076,455,591
2,877,057,358
29,958,693
2004/05
3,411,082,100
13,813,852
0
3,424,895,952
3,225,497,719
33,867,116
2005/06
3,956,642,179
29,248,534
0
3,985,890,713
3,786,492,480
Not Available
(1) The
Base Value for the Project
Area No. 1 is $199,398,233.
Source:
Riverside County and Audited Financial Statements of the
La Quinta Redevelopment Agency.
2004105, 2004 Revenue City of La Quinta
2
1H
PROJECT
AREA NO. 2
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (1)
Increment
1996/97
$419,135,799
$3,521,574
$0
$422,657,373
$327,474,618
$3,510,820
1997/98
485,513,978
4,484,841
0
487,998,819
392,816,064
4,107,340
1998/99
557,362,624
6,306,503
0
563,669,127
468,486,372
5,085,079
1999/00
653,544,147
5,472,923
0
659,017,070
563,834,315
6,127,144
2000/01
790,754,123
9,600,421
0
800,354,544
705,171,789
7,587,996
2001/02
1,003,653,582
12,084,137
0
1,015,737,719
920,554.964
9,004,474
2002/03
1,260,121,204
14,535,754
0
1,274,656,958
1,179,474,203
12,396,203
2003/04
1,510,073,642
20,167,571
0
1,530,241,213
1,435,058,458
15,158,339
2004/05
1,745,868,028
21,504,380
0
1,767,372,408
1,672,189,653
17,546,203
2005/06
2,080,975,290
32,295,383
0
2,113,270,673
2,018,087,918
Not Available
(1) The
Base Value for the Project Area No.
2 is $95,182,755.
Source:
Riverside County and
Audited Financial
Statements of the La Quinta
Redevelopment Agency.
B. HOUSING SET -ASIDE REVENUE
The following table sets forth the Housing Set -Aside revenue for the
Redevelopment Project Areas.
PROJECT AREA NO. 1
Total Taxable Gross Tax Housing
Fiscal Year Value Increment Set Aside
1996/97
$1,311,330,288
$11,344,856
$2,268,971
1997/98
1,396,497,378
12,161,894
2,432,379
1998/99
1,445,536,682
12,877,280
2,575,456
1999/00
1,635,613,531
15,659,371
3,131,874
2000/01
1,942,760,806
18,685,564
3,737,113
2001/02
2,302,211,164
20,929,840
4,488,487
2002/03
2,702,712,644
26,357,623
5,271,524
2003/04
3,076,455,591
29,958,693
5,991,739
2004/05
2,113,270,673
33,867,116
6,773,423
Source: Audited Financial Statements of the
La Quinta Redevelopment Agency and the
Statement of
Indebtedness filed with the
Riverside County Auditor
-Controller's Office.
PROJECT AREA NO. 2
Fiscal Year
Total Taxable
Value
Gross Tax
Increment
Housing
Set Aside
1996/97
$422,657,373
$3,510,820
$702,164
1997/98
487,998,819
4,107,340
821,468
1998/99
563,669,127
5,085,079
1,017,016
1999/00
659,017,070
6,127,144
1,225,429
2000/01
800,354,544
7,587,996
1,517,600
2001/02
1,015,737,719
9,004,474
2,025,212
2002/03
1,274,656,958
12,396,203
2,479,241
2003/04
1,530,241,213
15,158,339
3,031,668
2004/05
3,985,890,713
17,546,203
3,509,241
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the
Statement of Indebtedness filed with the Riverside County Auditor -Controller's
Office.
2004105, 2004 Revenue City of La Quinta
3
19
C. LAND USE
PROJECT AREA NO. 1
Land Use
2004/05 Total
Secured Value
Percent
of Total
Residential
$3,400,741,189
85.95%
Commercial
293,594,175
7.42%
Vacant
179,839,273
4.55%
Miscellaneous/Unknown
82,467,542
2.08%
Total Project Area No. 1
$3,956,642,179
100.00%
PROJECT AREA NO. 2
Land Use
2004/05 Total
Secured Value
Percent
of Total
Residential
$1,682,540,150
80.85%
Commercial
302,270,002
14.53%
Vacant
77,240,784
3.71%
Miscellaneous/Unknown
18,924,354
0.91%
Total Project Area No. 2 $2,080,975,290 100.00%
Source: County of Riverside 2005-06 Secured Property Roll, as compiled by MuniFinancial.
D. DEBT SERVICE COVERAGE
The following table sets forth the debt service for the Bonds and the portion of
debt service on the 1994 Bonds payable from Housing Set -Aside revenue.
1994 Bonds Total Debt
Debt Service Payable
Fiscal Debt Service Service From Housing Housing
Debt Service
Year Payment Payment I'I Set -Aside Set -Aside (ZI
Coverage
2003/04 $1,352,853 $490,521 $1,843,374 $9,023,407
4.89
2004/05 5,183,006 490,771 5,673,777 10,282,664
1.81
(1) Represents the 18.5% portion of annual debt service on the 1994 Bonds to which the Agency has allocated Housing
Set -Aside revenue derived from Project Area No. 1.
(2) Housing Set -Aside includes revenue from Project Area No. 1 and Project Area No. 2.
2004105, 2004 Revenue
City of La Quinta
4
20
E. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the Bonds and the
portion of debt service for 1994 Bonds payable from the Housing Set -Aside
revenue. Information contained in the table below was gathered and verified from
the corresponding Official Statements.
Maturity Date
1994 Bonds
Annual
Total
September 1,
Debt Service
Principal
Interest
Debt Service
Combined
2005
$490,770.78
$735,000
$2,224,003.13
$5,183,006.25
$5,673,777.03
2006
490,728.23
1,520,000
2,212,978.13
5,945,956.25
6,436,684.48
2007
491,050.13
1,570,000
2,190,178.13
5,950,356.25
6,441,406.38
2008
490,676.43
1,615,000
2,166,628.13
5,948,256.25
6,438,932.68
2009
490,464.60
1,670,000
2,138,365.63
5,946,731.25
6,437,195.85
2010
490,279.60
1,740,000
2,104,965.63
5,949,931.25
6,440,210.85
2011
490,911.38
1,805,000
2,070,165.63
5,945,331.25
6,436,242.63
2012
490,307.35
1,890,000
2,029,553.13
5,949,106.25
6,439,413.60
2013
1,975,000
1,987,028.13
5,949,056.25
5,949,056.25
2014
2,075,000
1,937,653.13
5,950,306.25
5,950,306.25
2015
2,175,000
1,885,778.13
5,946,556.25
5,946,556.25
2016
2,290,000
1,828,684.38
5,947,368.75
5,947,368.75
2017
2,410,000
1,768,571.88
5,947,143.75
5,947,143.75
2018
2,535,000
1,705,309.38
5,945,618.75
5,945,618.75
2019
2,670,000
1,638,765.63
5,947,531.25
5,947,531.25
2020
2,810,000
1,568,678.13
5,947,356.25
5,947,356.25
2021
2,960,000
1,494,915.63
5,949,831.25
5,949,831.25
2022
3,115,000
1,417,215.63
5,949,431.25
5,949,431.25
2023
3,275,000
1,335,446.88
5,945,893.75
5,945,893.75
2024
3,450,000
1,249,478.13
5,948,956.25
5,948,956.25
2025
3,630,000
1,158,915.63
5,947,831.25
5,947,831.25
2026
3,810,000
1,068,165.63
5,946,331.25
5,946,331.25
2027
4,000,000
972,915.63
5,945,831.25
5,945,831.25
2028
4,200,000
872,915.63
5,945,831.25
5,945,831.25
2029
4,410,000
767,915.63
5,945,831.25
5,945,831.25
2030
4,635,000
657,665.63
5,950,331.25
5,950,331.25
2031
4,870,000
538,893.75
5,947,787.50
5,947,787.50
2032
5,120,000
414,100.00
5,948,200.00
5,948,200.00
2033
5,380,000
282,900.00
5,945,800.00
5,945,800.00
2034
5,660,000
145,037.50
5,950,075.00
5,950,075.00
Total
$3,925,188.50
$90,000,000
$43,833,787.50
$177,667,575.00
$181,592,763.50
(1) Represents the 18.5% of annual debt service on the 1994 Bonds
to which the Agency
has allocated Housing
Set -Aside
revenue derived from Project Area No. 1.
2004105, 2004 Revenue City of La Quinta
C''3
21
F. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2005.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
2004105, 2004 Revenue City of La Quinta
22