2005 12 06 RDA6z# 4 SepQuixta
Redevelopment Agency Agendas are
Available on the City's Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 922.
Regular Meeting
DECEMBER 6, 2005 - 2:00 P.M.
Beginning Resolution No. RA 2005-012
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Perkins, Sniff, and Chairman Osborne
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
CLOSED SESSION
NOTE: Time permitting the Redevelopment Agency Board may conduct Closed Session
discussions during the dinner recess. In addition, persons identified as negotiating parties
are not invited into the Closed Session meeting when the Agency is considering acquisition
of real property.
1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR
DISPOSITION OF A PORTION OF 525±ACRES LOCATED AT THE SOUTHWEST
CORNER OF AVENUE 52 AND JEFFERSON STREET. PROPERTY
OWNER/NEGOTIATOR: THEODORE LENNON, DDC DESERT DEVELOPMENT, INC.
Redevelopment Agency Agenda 1 December 6, 2005
2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR, THOMAS P.
GENOVESE, PURSUANT TO GOVERNMENT CODE SECTION 54956.8
CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR
DISPOSITION OF REAL PROPERTY IDENTIFIED AS 649-040-002, 649-040,003,
649-040,004, 649-040-005, 649-040-01 1, 649-0409-012. PROPERTY OWNERS/
NEGOTIATORS: SUSAN E. SLATER, BARBARA A. FOUNTAIN, TED AND BEVERLY
A. HARTNETT, JOSE P. AND CARMELITA P. SIMO, LOUIS AND JUANITA
RAMIREZ, AND LORENZO P. AND SANDRA V. PEREYRA.
RECESS TO CLOSED SESSION
RECONVENE AT 3:00 P.M.
PUBLIC COMMENT
At this time members of the public may address the Agency Board 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 Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
APPROVAL OF MINUTES OF NOVEMBER 15, 2005
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
APPROVAL OF DEMAND REGISTER DATED DECEMBER 6, 2005.
2. APPROVAL OF THE SEPARATELY ISSUED LA QUINTA REDEVELOPMENT AGENCY
ANNUAL AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,
2005.
Redevelopment Agency Agenda 2 December 6, 2005
3. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA
REDEVELOPMENT AGENCY 1998, 2001, 2002, AND 2003 TAX ALLOCATION
BONDS FOR FISCAL YEAR END JUNE 30, 2005.
4. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT (PSA) WITH PW
CONSTRUCTION, INC. TO PROVIDE CONSTRUCTION MANAGEMENT SERVICES
FOR THE VISTA DUNES COURTYARD HOMES PROJECT.
BUSINESS SESSION - NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on
December 20, 2005 commencing with closed session at 2:00 p.m. and open session 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 Redevelopment Agency 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 December 2,
2005.
DATED: Friday, December 2, 2005
i
S. GREEK, CMC, City Clerk
City of La Quinta, California
r I
�.. J
Redevelopment Agency Agenda 3 December 6, 2005
Tilit 4 X�PQumrw
AGENDA CATEGORY:
BUSINESS SESSION
COUNCIL/RDA MEETING DATE: DECEMBER 06, 2005
CONSENT CALENDAR
ITEM TITLE:
Demand Register Dated December 06, 2005
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
STUDY SESSION
PUBLIC HEARING
Receive and File the Demand Register Dated December 06, 2005 of which $365,001.44
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER I ON CITY COUNCIL AGENDA
T414il 4.f�QuiKrw
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 6, 2005 BUSINESS SESSION:
CONSENT CALENDAR: IfO--
ITEM TITLE: Approval of the Separately Issued STUDY SESSION:
La Quinta Redevelopment Agency Annual Audited
Financial Statements for the Year Ended June 30, PUBLIC HEARING:
2005
RECOMMENDATION:
Approve, receive and file the Annual Audited Financial Statement for the year
ended June 30, 2005 (Attachment 1).
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
At the end of every fiscal year, the Redevelopment Agency prepares an audited
financial report.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency include:
1. Approve, receive and file the Annual Audited Financial Statement for the
year ended June 30, 2005; or
2. Do not approve, receive and file the Annual Audited Financial Statement for
the year ended 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. Annual Audited Financial Statement for the year ended
June 30, 2005 (Previously distributed to City Council)
2
'
LA QUINTA REDEVELOPMENT AGENCY
Financial Statements and
'
Supplemental Data
Year ended June 30, 2005
(with Independent Auditors' Report Thereon)
1
1
l�
U
1
1
1
L
F
(This page intentionally left blank)
' LA QUINTA REDEVELOPMENT AGENCY
' Financial Statements and Supplemental Data
Year ended June 30, 2005
TABLE OF CONTENTS
Page
Independent Auditors' Report 1
' Basic Financial Statements:
1
Government -wide Financial Statements:
Statement of Net Assets
4
Statement of Activities
Fund
5
Financial Statements:
Governmental Funds:
Balance Sheet
6
Reconciliation of the Balance Sheets of Governmental Funds to the
Statement of Net Assets
9
Statement of Revenues, Expenditures and Changes in Fund Balances
10
Reconciliation of the Statement of Revenues, Expenditures and Changes
12
Notes to the Basic Financial Statements
13
Required Supplementary Information:
Notes to Required Supplementary Information
38
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual:
Low/Moderate Income Housing Fund — PA No. 1
39
Low/Moderate Income Housing Fund — PA No. 2
40
Supplementary Information:
Non -Major Governmental Funds:
Balance Sheet
42
'
Statement of Revenues, Expenditures and Changes in Fund Balances
43
Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
44
11
AND
CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATES, L.L.P.
Board of Directors
La Quinta Redevelopment Agency
La Quinta, California
INDEPENDENT AUDITORS' REPORT
2301 DUPONT DRIVE, SUITE 200
IRVINE, CALIFORNIA 92612
(949)474-2020
Fax (949) 263-5520
We have audited the accompanying financial statements of the governmental activities and each
major fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta,
California as of and for the year ended June 30, 2005, which collectively comprise the Agency's
basic financial statements as listed in the table of contents. These basic financial statements are
the responsibility of the management of the La Quinta Redevelopment Agency. 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 basic financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
basic 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 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 financial position of the governmental activities and each major fund of the La Quinta
Redevelopment Agency at June 30, 2005, and the results of its operations for the year then
ended, in conformity with accounting principles generally accepted in the United States of
America.
The La Quinta Redevelopment Agency has not presented Management's Discussion and
Analysis that the Governmental Accounting Standards Board has determined is necessary to
supplement, although not required to be part of, the basic financial statements.
The information identified in the accompanying table of contents as 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.
i
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
Board of Directors
La Quinta Redevelopment Agency
Page Two
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the basic financial statements. The combining fund financial statements
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining 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.
In accordance with Government Auditing Standards, we have also issued a report dated August
18, 2005 on our consideration of the City's internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
August 18, 2005.
LA QUINTA REDEVELOPMENT AGENCY
Statement of Net Assets
June 30, 2005
Governmental Activities
2005
2004
Assets:
Cash and investments (note 2)
$ 44,543,631
44,248,109
Accounts receivable
143,649
141,113
Interest receivable
270,174
166,135
Notes receivable (note 3)
12,858,098
12,741,527
Deposits
1,110
-
Due from other governments
637,129
530,820
Advances to the City of La Quinta (note 4)
7,061,027
5,336,158
Restricted assets:
Cash and investments with fiscal agent (note 2)
85,970,211
95,419,807
Capital assets (note 5):
Land
52,283,520
68,488,416
Other capital assets,. net
440,000
560,000
Total assets
204,208,549
227,632,085
Liabilities:
Accounts payable
134,918
72,677
Interest payable
2,732,639
2,756,408
Deposits payable
46,499
46,499
Due to the City of La Quinta
3,394,775
2,746,630
Noncurrent liabilities (notes 7 to 12):
Due within one year
4,175,636
4,051,114
Due in more than one year
269,587,349
270,025,317
Total liabilities
280,071,816
279,698,645
Net assets:
Invested in capital assets, net of related debt
-
-
Restricted for:
Low moderate housing
86,949,361
56,551,121
Capital projects
32,074,429
56,275,681
Unrestricted
(194,887,057)
(164,893,362)
Total net assets
$ (75,863,267)
(52,066,560)
See accompanying notes to the basic financial statements.
4
1
LA QUINTA REDEVELOPMENT AGENCY
Statement of Activities
Year ended June 30, 2005
Program Revenues
Operating Capital
Charges for Contributions Contributions
Governmental Activities
'
Expenses Services and Grants and Grants
2005
2004
Governmental activities:
Planning and
development
$ 37,334,379 - -
(37,334,379)
(3,009,321)
Low and moderate
housing
6,964,980 - 4,339,970
(2,625,010)
(17,830,532)
Interest expense
10,878,054 - -
(10,878,054)
(12,279,953)
Total governmental
activities
$ 55,177,413 - 4,339,970
(50,837,443)
(33,119,806)
General revenues:
Taxes:
Property taxes
25,656,998
23,668,885
Investment income
851,103
893,828
Rental income
520,243
437,972
Gain (loss) on sale of capital assets
(56,763)
Miscellaneous revenues
12,392
978,895
Total general revenues
27,040,736
25,922,817
Change in net assets
(23,796,707)
(7,196,989)
Net assets (deficit) at beginning of year
(52,066,560)
(44,869,571)
1
Net assets (deficit) at end of year
$ (75,863,267)
(52,066,560)
See accompanying notes to the basic financial statements.
5
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds - Balance Sheet
June 30, 2005
Special Revenue Funds
Debt Service Funds
Low/Moderate
Low/Moderate
Redevelopment
Redevelopment
Income Housing -
Income Housing -
Agency -
Agency -
Assets
PA No. 1
PA No. 2
PA No. I
PA No. 2
Cash and investments
$ 6,758,136
9,059,259
17,912,730
10,328,387
Cash and investments with fiscal agent
-
-
100
-
Accounts receivable
74,249
8,500
-
-
Interest receivable
30,346
44,826
81,147
57,230
Notes receivable
3,358,098
9,500,000
-
-
Deposits
1,110
-
-
-
Due from other governments
84,625
42,801
338,499
171,204
Advances to the City of La Quinta
-
-
-
_
Total assets
$10,306,564
18,655,386
18,332,476
10,556,821
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 11,120
77,506
3,395
855
Deferred revenue
1,240,225
9,500,000
-
-
Deposits payable
18,664
-
Due to the City of La Quinta
-
Advances from the City of La Quints,
-
-
_
Total liabilities
1,270,009
9,577,506
3,395
855
Fund balances:
Reserved for:
Bondprojects
_
_
_
_
Debt service
_
Notes receivable
2,117,873
Deposits
1,110
Advances to the City of La Quinta
-
_
Unreserved, reported in:
Special revenue funds
6,917,572
9,077,880
-
-
Debt service funds
-
18,329,081
10,555,966
Capital projects funds
-
-
-
-
Total fund balances (deficit)
9,036,555
9,077,880
18,329,081
10,555,966
Total liabilities and fund balances
$10,306,564
18,655,386
18,332,476
10,556,821
See accompanying notes to the basic financial statements
6
Capital Projects Funds
Redevelopment
2004
Other
Agency -
Low/Mod
Governmental
Totals
PA No. 1
Bond
Funds
2005
2004
-
-
485,119
44,543,631
44,248,109
27,809,770
58,160,341
-
85,970,211
95,419,807
-
-
60,900
143,649
141,113
19
55,935
671
270,174
166,135
-
-
12,858,098
12,741,527
1,110
-
-
-
637,129
530,820
5,938,879
1,122,148
7,061,027
5,336,158
33,748,668
58,216,276
1,668,838
151,485,029
158,583,669
33,872
-
8,170
134,918
72,677
-
-
10,740,225
10,618,102
-
-
27,835
46,499
46,499
3,273,200
121,575
-
3,394,775
2,746,630
-
28,671,083
3,307,072
121,575
36,005
14,316,417
42,154,991
27,809,770
58,160,341
85,970,111
95,419,487
-
-
-
4,088,071
2,117,873
2,123,425
-
-
1,110
5,938,879
1,122,148
7,061,027
5,336,158
-
-
15,995,452
7,388,816
-
-
28,885,047
(11,104,297)
(3,307,053)
(65,640)
510,685
(2,862,008)
13,177,018
30,441,596
58,094,701
1,632,833
137,168,612
116,428,678
33,748,668
58,216,276
1,668,838
151,485,029
158,583,669
7
i
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds
Reconcilation of the Balance Sheet of Governmental Funds to
the Statement of Net Assets
June 30, 2005
Fund balances of governmental funds
$ 137,168,612
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 resources in governmental fund activity.
Capital assets
52,943,520
'
Accumulated depreciation
(220,000)
Long term debt has not been included in the governmental fund activity.
(273,762,985)
tAccrued
interest payable for the current portion of interest due on
long term debt has not been reported in the governmental funds.
(2,732,639)
Revenues that are measurable but not available. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting.
10,740,225
1
Net assets of governmental activities
$ (75,863,267)
eSee accompanying notes to the basic financial statements.
1 9
LA QUINTA REDEVELOPMENT AGENCY
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
Revenues:
Taxes
Developer fees
Investment income
Rental income
Loan repayments
Miscellaneous revenues
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest and fiscal charges
Payments under pass -
through obligations
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Issuance of tax allocation bonds
Proceeds from advances
Proceeds from loans
Proceeds from sale of capital assets
Payment to bond escrow
Transfers in (note 14)
Transfers out (note 14)
Transfers from (to) the City of La Quinta
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit) at beginning of year,
as restated (note 16)
Fund balances (deficit) at end of year
Special Revenue Funds
Low/Moderate Low/Moderate
Income Housing - Income Housing -
PA No. 1 PA No. 2
$ 61773,423
80,270
310,574
2,048,855
12,392
9,225,514
2,189,402
Debt Service Funds
Redevelopment Redevelopment
Agency - Agency -
PA No. 1 PA No. 2
3,509,241 27,093,693 14,036,962
140,742 255,628 174,272
209,669 - -
332,747
4,192,399 27,349,321 14,211,234
1,350,908
365,810
3,209,964
8,967,948
180,374
195,000
1,782,844
- - 14,421,097 11,335,224
2,189,402 1,350,908 26,964,819 13,493,442
7,036,112
2,841,491
384,502
717,792
1,037,979
1,459,580
668,642
7,897,653
2,478,347
4,142,039
(2,478,347)
(4,142,039)
-
(3,221,318)
(1,995,101)
(994,948)
(1,809,705)
534,296
1,521,225
4,606,671
5,226,407
3,375,787
1,905,727
5,324,463
3,810,148
5,702,093
16,423,354
5,231,503
$ 9,036,555
9,077,880
18,3291081
10,555,966
See accompanying notes to the basic financial statements.
10
I
1
Capital Projects Funds
Redevelopment
2004
Other
Agency -
Low/Mod
Governmental
Totals
PA No. 1
Bond
Funds
2005
2004
51,413,319
45,117,032
-
-
-
-
642,580
'
767,0,,332
36
1191
78,068
2,687,348
1,145,871
-
-
-
520,243
437,972
-
-
-
2,381,602
12,392
612,820
366,075
767,036
1,191,332
78,068
57,014,904
48,322,350
558,792
-
193,088
4,838,374
6,707,396
-
-
3,404,964
3,196,877
10,750,792
11, 505,230
25,756,321
-
-
21,448,147
1
558,792
-
193,088
44,750,451
42,857,640
'
208,244
1,191,332
(115,020)
12,264,453
5,464,710
' 442,928
1 _(17,612,949)
(17,170,021)
(16,961,777)
47,403,373
30,441,596
26,400,000
2,940,487 -
- 87,869,343
8,566,295 108,570
(21,546,107)
6,620,386 7,869,439
(6,620,386) (7,869,439)
753,613 (7,124,455) (31,702,384) (32,296,656)
(753,613)
(7,124,455)
(20,195,602)
60,535,150
437,719
(7,239,475)
(7,931,149)
65,999,860
57,656,982
8,872,308
145,099,761
50,428,818
58,094,701 1,632,833 137,168,612 116,428,678
11
LA QUINTA REDEVELOPMENT AGENCY
Reconcilation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2005
Net changes in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of
activities is different because:
$ (7,931,149) 1
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, th cost of those assets is allocated over their estimated
useful lives as depreciation expense. This is the amount by which capital
outlays exceeded depreciation in the current period. (16,324,896)
Proceeds from the issuance of debt is reported as other financing sources
in the governmental funds. The issuance of debt increases liabilities in the
statement of net assets, but does not result in an increase in the statement of
activities. (2,940,487)
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets.
Principal repayment 3,404,964
Bond issuance costs are recorded as an expenditure in the governmental
funds while full accrual requires the amortization of these costs over the life
of the debt. (151,031)
The statement of net assets includes accrued interest on long tern debt. 23,769
Revenues that are measurable but not available. Amounts are not recorded
as revenues under the modified accrual basis of accounting.
Changes in net assets of governmental activities
See accompanying notes to the basic financial statements.
12
122,123
$ (23,796,707)
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
Year ended June 30, 2005
(1) Summary of Significant Accounting Policies
The following is a summary of the significant accounting policies of the La Quinta
Redevelopment Agency:
(a) Organization and Tax Increment Financing
Redevelopment Goals and Objectives
The general objective of the Redevelopment Plan adopted by the Agency is to
encourage investment in the Redevelopment Project Areas by the private sector.
The Redevelopment Plan provides for the demolition of buildings and
improvements, the relocation of any displaced occupants, and the construction of
streets, parking facilities, utilities and other public improvements. The
Redevelopment Plan also includes the ability to redevelop land by private enterprise
or public agencies, the rehabilitation of structures, the rehabilitation or construction
of single family and low and moderate income housing, and participation by owners
and tenants of properties in the Redevelopment Project.
Redevelopment Project Areas
' The Agency has established two redevelopment project areas. On November 29,
1983 the City Council approved and adopted the Redevelopment Plan for the La
Quinta Redevelopment Project Area No. 1. On May 16, 1989 the City Council
approved and adopted the Redevelopment Plan for the La Quints Redevelopment
Project Area No.2. These plans provide for the elimination of blight and
deterioration that was found to exist in the project areas.
Tax Increment Financine
The Law provides a means for financing redevelopment projects based upon an
e allocation of taxes collected within a redevelopment project. The assessed valuation
of a redevelopment project last equalized prior to adoption of a redevelopment plan
or amendment to such redevelopment plan, or "base roll', is established and, except
for any period during which the assessed valuation drops below the base year level,
the taxing bodies, thereafter, receive the taxes produced by the levy of the current
tax rate upon the base roll. Taxes collected upon any increase in assessed valuation
over the base roll ("tax increment') are paid and may be pledged by a
redevelopment agency to the repayment of any indebtedness incurred in financing or
refinancing a redevelopment project. Redevelopment agencies themselves have no
authority to levy property taxes.
13
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(l) Summary of Significant Accounting Policies, (Continued)
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the Agency are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the basic 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 La Quinta Redevelopment Agency 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 the function to which they were allocated). However, general
government expenses have not been allocated as indirect expenses to the various
functions of the Agency.
The accompanying government -wide financial statements for the Agency present
negative net assets because the primary activity of the Agency is to issue debt to
construct infrastructure that will be owned and maintained by the City.
Government -wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic
resources measurement focus, all (both current and long-term) economic resources
and obligations of the reporting government are reported in the government -wide
financial statements. Basis of accounting refers to when revenues and expenditures
are recognized in the accounts and reported in the financial statements. Under the
accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities
resulting from exchange and exchange -like transactions are recognized when the
exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities
resulting from nonexchange transaction are recognized in accordance with the
requirements of GASB Statement No. 33.
Program revenues include charges for services and payments
outside of the reporting government's citizenry if that money
particular program. Program revenues are netted with program
statement of activities to present the net cost of each program.
14
made by parties
is restricted to a
expenses in the
I
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued)
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 -tern
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 Agency 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-
e 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.
e Fiduciary funds primarily represent assets held by the Agency in a custodial
capacity for other individuals or organizations. The Agency has no nonmajor funds,
enterprise funds, or fiduciary funds.
Governmental Funds
In the fund financial statements, governmental funds and agency 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
e amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The Agency
uses a sixty day availability period.
1
15
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
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 upon 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.
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 source 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.
16
I
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued)
(c) Major Funds
The following funds are presented as major funds in the accompanying basic
financial statements:
Special Revenue. Low and Moderate hicome Housing P.A. No 1 and No 2 Funds —
To account for the required 20% set aside of property tax increments that is legally
restricted for increasing or improving housing for low and moderate income
households.
Debt Service Funds, 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.
Capital Projects Funds, P.A. No. 1 — To account for the bond proceeds, interest and
other funding that will be used for development, planning, construction and land
acquisition.
1 2004 Low and Moderate Income Housing Fund — To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction,
and land acquisition for low and moderate income housing projects.
1 (d) Cash and Investments
For financial reporting purposes, investments are adjusted to their fair value
whenever the difference between fair value and the carrying amount is material.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments.
e) Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist.
Contributed fixed assets are valued at their estimated fair market value at the date of
the contribution. Generally, fixed asset purchases in excess of $5,000 are capitalized
if they have an expected useful life of three years or more. Buildings are depreciated
over a useful life of thirty years.
17
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Capital assets include public domain (infrastructure) general fixed assets consisting
of certain improvements including roads, streets, sidewalks, medians, and storm
drains.
(f) Comparative Data
Comparative total data for the prior year have been presented in the accompanying
financial statements in order to provide an understanding of changes in the
Agency's financial position and operations. However, comparative (i.e.,
presentation of prior year totals by fund type) data have not been presented in each
of the statements since their inclusion would make the statements unduly complex
and difficult to read. Certain minor reclassifications of prior year data have been
made in order to enhance their comparability with current year figures.
(2) Cash and Investments
Cash and investments held by the Agency at June 30, 2005 consisted of the following:
Equity in State of California Local Agency Investment Fund $ 3,612,974
Equity in City cash and investment pool 40,930,657
Total cash and investments held by the Agency $44.543.631
Cash and investments held by fiscal agent at June 30, 2005 consisted of the following:
U.S. Treasury bills. $82,419,111
Money market mutual funds —
First American Treasury Obligations 3,551,100
Total cash and investments held by fiscal agent $85970.211
Investments Authorized by the California Government Code and the Agency's
Investment Policy
The table below identifies the investment types that are authorized for the Agency by the
California Government Code and the Agency's investment policy. The table also
identifies certain provisions of the California Government Code (or the Agency's
investment policy, if more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk. This table does not address investments of debt proceeds held
by bond trustee that are governed by the provisions of debt agreements of the Agency,
rather than the general provisions of the California Government Code or the Agency's
investment policy.
18
I
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
1
1
(2) Cash and Investments, (Continued)
Authorized
*Maximum
*Maximum
Investment Types By Investment *Maximum
Percentage
Investment
Authorized by State Law Policy Maturity
Of Portfolio
In One Issuer
Local Agency Bonds Yes 5 years
None
None
U.S. Treasury Obligations Yes 5 years
None
None
U.S. Agency Securities Yes 5 years
None
None
Banker's Acceptances Yes 180 days
40%
30%
Commercial Paper Yes 270 days
25%
10%
Negotiable Certificates of Deposit Yes 5 years
30%
None
Repurchase Agreements Yes 1 year
None
None
Reverse Repurchase Agreements Yes 92 days
20% of
None
base value
Medium -Term Notes Yes 5 years
30%
None
Mutual Funds Yes N/A
20%
10%
Money Market Mutual Funds Yes N/A
20%
10%
Mortgage Pass -Through Securities Yes 5 years
20%
None
1
County Pooled Investment Funds Yes N/A
None
None
Local Agency Investment Fund Yes N/A
25%
None
(LAIF)
1
JPA Pools (other investment pools) Yes N/A
None
None
* Based on state law requirements or investment policy
requirements, whichever is more restrictive.
Investments Authorized by Debt Agreements
o
Investment of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
Agency's investment policy. The table below identifies the
investment
types that are
authorized for investments held by bond trustee. The table also identifies certain
provisions of these debt agreements that address interest
rate risk, credit risk, and
concentration of credit risk.
19
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Tye
Maturity
Allowed
in One Issuer
U.S. Treasury Obligations
None
None
None
U.S. Agency Securities
None
None
None
Banker's Acceptances
360 days
None
None
Commercial Paper
270 days
None
None
Money Market Mutual Funds
N/A
None
None
Negotiable Certificates of Deposit
360 days
None
None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to changes in market interest rates. One of the ways
that the Agency manages its exposure to interest rate risk is by purchasing a combination
of shorter term and longer term investments and by timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the Agency's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the Agency's investments by maturity:
Total
Investment Tye
Amount
State investment pool
$ 3,612,974
Held by bond trustee:
Money market funds
3,551,100
U.S. Treasury bills
82,419,111
Total
$89.583.185
Remaining Maturity
in months
3 Months 4 to 6
Or Less Months
3,612,974
3,551,100 -
52,680,607 29,738,504
20
I
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a rating
by a nationally recognized statistical rating organization. Presented below is the minimum
rating required by (where applicable) the California Government Code, the Agency's
investment policy, or debt agreements, and the actual rating as of year end for each
investment type.
Minimum Exempt Rating as of Year End
Total Legal From Not
hnvestment T32 Amount Ratme Disclosure Aa Rated
State investment pool 3,612,974 N/A - 3,612,974
1 Held by bond trustee:
Money market funds 3,551,100 A 3,551,100
U.S. Treasury bills 82,419,111 N/A 82,419,111
Total $89.583.185 82 419 11 3 51 10 3.612.974
1 Investments in any one issuer that represent 5% or more of total investments by reporting
unit (major fund, nonmajor funds in the aggregate, etc.) are as follows:
$27,805,721 and 54,613,390 of the cash and investments (held by bond trustee) reported
1 in Capital Projects Redevelopment Agency — PA No. 1 fund and 2004 Low/Mod Bond
fund, respectively, are held in the form of U.S. Treasury bills maturing between
September 22 and December 31, 2005.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
another party. The California Government Code and the Agency's investment policy do
not contain legal or policy requirements that would limit the exposure to custodial credit
risk for deposits or investments, other than the following provision for deposits: The
California Government Code requires that a financial institution secure deposits made by
state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental
21
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
unit). 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 Agency deposits by pledging first trust deed mortgage
notes having a value of 150% of the secured public deposits
Investment in State Investment Pool
The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that
is regulated by the California Government Code under the oversight of the Treasurer of
the State of California. The fair value of the Agency's investment in this pool is reported
in the accompanying financial statements at amounts based upon the Agency's pro-rata
share of the fair value provided by LAW 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.
(3) Notes Receivable
In September 1994, the Agency sold certain real property to LINC
Housing for $2,112,847. The property was used to construct single-
family homes and rental units to increase the City's supply of low
and moderate income housing. The note bears interest at 6% per
annum and is due in full on June 15, 2029.
In December 2000, the Agency entered into an agreement with
LINC Housing 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.
Other notes receivable
Total notes receivable
Outstanding
Balance at
June 30, 2005
$ 3,275,614
9,500,000
22
I
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
e(4) Advances to the City of La Quinta
The Redevelopment Agency advanced funds to the City of La Quinta to help the City
meet the cost of developing the public -owned improvements to the La Quinta Community
Park and Civic Center Campus. There is no stipulated repayment date established for the
Agency advances. Interest accrues at the earning rate of the City's Investment Pool funds,
and shall be adjusted quarterly. At June 30, 2005, outstanding Project Area No. 1
1 advances were $5,938,879 and Project Area No. 2 advances were $1,122,148.
(5) Capital Assets
Capital asset activity for the year ended June 30, 2005 was as follows:
Balances at Balances at
June 30, 2004 Additions Deletions June 30, 2005
Buildings $ 800,000 120,000 (260,000) 660,000
Total cost of depreciable assets 800,000 120,000 (260,000) 660,000
Less accumulated depreciation for:
Buildings (240,0001 (25,992 45,992 (220,000)
Net depreciable assets 560,000 94,008 (214,008) 440,000
Capital assets not depreciated:
Land 68,488,416 5,433,978 (21,638,874) 52,283,520
Capital assets, net $69.048.416 ,52�7,986 (1.8 ) 2.723.520
1
23
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(6) 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.
Lien date January 1
Levy date July I
Due dates November 1 and February 1
Collection dates December 10 and April 10
The La Quinta Redevelopment Agency's primary source of revenue comes from '
property taxes. Property taxes allocated to the Agency are computed in the following
manner:
(a) The assessed valuation of all property within the project area is determined on the '
date of adoption of the Redevelopment Plan.
(b) Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the
"frozen" assessed valuation of the property are allocated to the City and other
districts.
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. Broadened property tax exemptions could have a
similar effect. Conversely, any increase in the tax rate or assessed valuation, or any
reduction or elimination of present exemptions would increase the amount of tax
revenues that would be available to pay principal and interest on debt.
24
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
7) Lone -Term Liabilities
Long-term liability activity for the year ended June 30, 2005 was as follows:
Amounts
Balance at Balance at due within
June 30, 2004 Additions Deletions June 30, 2005 one vear
Loans payable to City of La Quinta
Financing Authority $66,323,236
Project Area No
1994 Tax Allocation Bonds
17,085,000
1998 Tax Allocation Bonds
15,760,000
2001 Tax Allocation Bonds
46,254,248
2002 Tax Allocation Bonds
37,932,244
2003 Tax Allocation Bonds
25,476,136
Pass -through agreement payable:
Coachella Valley Unified School District
6,653,377
Advances from City of La Quinta
12,335,283
Loans payable to City of La Quinta
Financing Authority
16,961,867
Project Area No. 2
- 66,323,236 554,773
(1,430,000) 15,655,000 1,510,000
- - 15,760,000 -
64,658 - 46,318,906 -
53,670 (575,000) 37,410,914 585,000
32,703 (390,000) 25,118,839 405,000
- (726,114) 5,927,263 740,636
1,480,907 (88,850) 13,727,340 -
- - 16,961,867 141,881
1998 Tax Allocation Bonds 6,325,000 (95,000) 6,230,000 100,000
Due to County of Riverside 2,050,000 - (100,000) 1,950,000 100,000
Advances from City of La Quinta 16,335,800 1,459,580 - 17,795,380 -
Loans payable to City of La Quinta
Financing Authority 4,584,240 - - 4,584,240 38,346
Total long-term liabilities $274.07fi.431 3 OAS I fl (3.4) 273962.985 4.175.636
25
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(,8) Tax Allocation Bonds
Tax Allocation Refunding Bonds, Series 1994
Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued
by the Agency 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 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, 2005 is $15,655,000.
Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued
by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable from pledged tax increment revenues. There are certain limitations
regarding the issuance of panty debt as further described in the official statement.
Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter,
through September 1, 2028, at a price equal to the principal amount thereof plus accrued
interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the
bond reserve requirement. The principal balance of outstanding bonds at June 30, 2005 is
$15,760,000.
Tax Allocation Refunding Bonds, 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.
e-T1
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
Interest rates on the bonds range from 3.75% 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 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, 2005 is $6,230,000.
Tax Allocation Bonds, Series 2001 — Proiect Area No. 1
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.
t 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, 2005 is
$46,318,906 ($48,000,000 net of unamortized discount and issuance costs of $1,681,094).
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 $1,250,096.
1 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.
�J
27
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds. (Continued)
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, 2005 is
$37,410,914 ($38,860,000 net ofunamortized discount and issuance costs of $1,449,086).
Tax Allocation Bonds, Series 2003 — Proiect Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quinta Redevelopment Project
Area No. 1. The 2003 tax allocation bonds were issued at a discount of $277,200
issuance costs of $629,191.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032 are subject to
mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
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, 2005 is $25,118,839 ($26,010,000 net of unamortized discount and issuance
costs of $891,161).
28
F
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds.
(Continued)
The minimum annual requirements (including sinking fund requirements)
to amortize the
Project Area No.
1 and No. 2 tax allocation bonds as of June 30,
2005 are as follows:
Project Area
No. 1
Project Area No. 2
Tax Allocation Bonds
Tax Allocation Bonds
June 30:
Principal
Interest
Principal
Interest
2006 $
2,500,000
7,805,905
100,000
319,168
e
2007
2008
2,640,000
2,795,000
7,658,900
7,500,554
105,000
110,000
314,785
310,135
2009
2,960,000
7,330,189
115,000
305,184
2010
3,135,000
7,144,063
120,000
299,550
1
2011
3,330,000
6,941,435
125,000
293,272
2012
3,540,000
6,724,311
130,000
286,737
2013
3,765,000
6,491,872
140,000
279,819
2014
3,515,000
6,281,899
145,000
272,516
2015
3,690,000
6,095,257
150,000
264,956
2016
3,885,000
5,896,531
160,000
257,013
2017
4,090,000
5,687,234
170,000
248,556
2018
4,305,000
5,466,835
175,000
239,716
2019
4,530,000
5,234,798
185,000
230,491
2020
4,770,000
4,990,457
195,000
220,631
2021
2022
5,020,000
5,285,000
4,733,125
4,462,141
205,000
215,000
210,131
199,106
2023
5,565,000
4,175,504
230,000
187,425
2024
5,860,000
3,871,622
240,000
175,087
2025
6,170,000
3,549,682
255,000
162,094
2026
6,505,000
3,209,208
265,000
148,444
2027
6,850,000
2,850,313
280,000
134,138
1
2028
7,220,000
2,472,033
295,000
119,044
2029
7,610,000
2,073,117
310,000
103,163
2030
8,015,000
1,653,186
325,000
86,494
2031
8,445,000
1,211,175
345,000
68,906
2032
8,905,000
745,023
360,000
50,400
2033
9,385,000
252,852
380,000
30,975
2034
-
-
400,000
10,500
$ 1442285,000
132,509,221
6,230,000
5,828,436
29
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(9) Loans Payable to the City of La Quinta Financing Authority
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount
of $90,000,000 to finance projects benefiting low and moderate income housing in La
Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area
No. 2 and to advance refund the Agency's Redevelopment Project Areas No. 1 and 2,
1995 Housing Tax Allocation Bonds. The La Quinta Financing Authority loaned
$87,869,343 of the proceeds of the bonds to the La Quinta Redevelopment Agency.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
September 1, 2004. Interest payments range from 3% to 5.25% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1; 2024, September 1, 2029 and September 1, 2034
are subject to mandatory redemption from minimum sinking fund payments, in part by
lot, on September 1, 2017, September 1, 2025, and September 1, 2030, respectively, and
on each September 1 thereafter at a redemption price equal to the principal amount
thereof plus accrued interest to the redemption date.
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 loans
payable to the Financing Authority at June 30, 2005 is $87,869,343.
I
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(9) Loans Payable to the City
of La Quinta Financing Authority,
(Continued)
The minimum annual requirements to repay the loan to the
Financing Authority as of
June 30, 2005 are as follows:
2004 Series A Revenue Bonds
June 30
Principal
Interest
2006
$ 735,000
2,990,049
2007
1,520,000
4,436,981
2008
1,570,000
4,403,156
e
2009
1,615,000
4,356,806
2010
1,670,000
4,304,994
2011
1,740,000
4,243,332
2012
1,805,000
4,175,132
2013
1,890,000
4,099,719
2014
1,975,000
4,016,581
2015
2,075,000
3,924,681
2016
2,175,000
3,823,431
2017
2,290,000
3,714,462
2018
2,410,000
3,597,256
2019
2,535,000
3,473,881
2020
2,670,000
3,344,075
2021
2,810,000
3,207,444
2022
2,960,000
3,063,594
2023
3,115,000
2,912,132
e
2024
2025
3,275,000
3,450,000
2,752,663
2,584,925
2026
3,630,000
2,408,394
2027
3,810,000
2,227,082
2028
4,000,000
2,041,082
2029
4,200,000
1,845,832
2030
4,410,000
1,640,832
2031
4,635,000
1,425,582
2032
4,870,000
1,196,560
2033
5,120,000
952,994
2034
5,380,000
697,000
2035
3,529,343
572,969
87.869.343
88.433.621
31
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(10) Due to County of Riverside
Project Area No, 2
Based on an agreement dated July 5, 1989 between the Agency and the County, until the
tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to
the County 50% of the County portion of tax increment. At the County's option, the
County's pass -through portion can be retained by the Agency to finance new County
facilities or land costs that benefit the County and serve the La Quinta population. Per the
agreement, the Agency must repay all amounts withheld from the County. The tax
increment is to be paid to the County in amounts ranging from $100,000 to $250,000 over
a payment schedule through June 30, 2015. Interest does not accrue on this obligation.
The balance at June 30, 2005 is $1,950,000.
The minimum annual requirement to amortize Due to County of Riverside as of June 30,
2005 is as follows:
June 30
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Principal
$ 100,000
100,000
150,000
200,000
200,000
200,000
250,000
250,000
250,000
250.00
32
r
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
11) Pass -through Agreement Payable to Coachella Valley Unified School District
o 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, 2005 totaled $5,927,263. The District agrees
to use such funds to provide classroom and other construction costs, site acquisition,
school buses, expansion or rehabilitation of current facilities.
The minimum annual requirements to amortize Payable to Coachella Valley Unified
School District as of June 30, 2005 are as follows:
June 30 Principal
2006 $ 740,636
2007 755,449
2008 770,558
2009 785,968
2010 801,688
2011 817,722
2012 834,076
2013 421,166
S9272
(12) Advances from the City of La Quinta
The City of La Quinta advances money to the Redevelopment Agency to cover operating
and capital shortfalls. There is no stipulated repayment date established for the City
advance. Interest accrues at 10% per annum. The City of La Quinta advanced money to
Project Area No. 1 in the amount of $6,397,129 with interest accruing at 7% per annum.
The maturity date for this advance is November 29, 2033. At June 30, 2005, the
outstanding balances for Project Area No. 1 and Project Area No. 2 are $13,727,340 and
$17,795,380,respectively.
33
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(13) Pledged Tax Revenues
All tax revenues received by the Agency other thanthe amount required by law to be
deposited in a low and moderate income housing fund, are required to be used to meet
debt service requirements of the bond indentures before any payments may be made on
other obligations of the Agency.
(14) Transfers In and Out
The following transfers were made during the year ended June 30, 2005:
Transfer In Transfer Out Amount
Debt Service — RDA PA No. 1 Low/Mod Income
Housing — PA No. 1 $2,478,347 (A)
Debt Service — RDA PA No. 2 Low/Mod Income
Housing — PA No. 2 4,142,039 (B)
Total transfers $6.624
(A) $2,478,347 was transferred from the Low/Moderate Housing Project Area No. 1
Fund to the RDA Debt Service Project Area No. 1 Fund to pay a portion of the
2004 Series A Local Agency Revenue Bond debt service.
(B) $4,142,039 was transferred to the Capital Improvement Fund from the
Low/Moderate Housing Project Area No. 2 Fund to provide funding for the
production of low and moderate income housing units.
(15) Educational Revenue Augmentation Fund (ERAF) Pavment
During fiscal year ended June 30, 2005, Chapter 1127 of the 2002 Statutes of the State of
California requires redevelopment agencies to shift $250,000,000 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 $2,780,728 of the $250,000,000, which was forwarded to the Riverside County
Auditor in accordance with the statute.
34
LA QUINTA REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
(Continued)
(16) Restatement of Begi using Fund Balances
During the year ended June 30, 2005, the Agency restated the beginning fund balance of
its debt service fund to exclude advances payable to the City. Within the context of the
separately issued financial statements of the Agency, these amounts are considered to be
long-term debt due to an external party (the City). Governmental funds are presented
using the current financial resources measurement focus. Since long-term advances due
to the City are not due and payable in the current period, they are not reported as
governmental fund liabilities. The following summarizes the effect of a restatement to
beginning fund balances as of July 1, 2004:
RDA RDA
Debt Debt
Service Service
PA No. 1 PA No. 2
Fund balance (deficit) at beginning of year,
as previously reported $ 4,088,071 (11,104,297)
To properly exclude advances from the
City from the Agency's governmental funds 12,335,283 16,335,800
Fund balance at beginning of year, as restated 16.423.354 5.231.503
35
REQUIRED SUPPLEMENTARY INFORMATION
37
LA QUINTA REDEVELOPMENT AGENCY
Notes to Required Supplementary Information
Year ended June 30, 2005
(1) Budgets and Budgetary Accounting
The Agency adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental 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.
Appropriations were $1,236,481 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.
38
LA QUINTA REDEVELOPMENT
AGENCY
Low/Moderate Income Housing Fund - PA No. 1
Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Taxes
$ 6,246,300
6,480,979
6,773,423
292,444
5,991,739
Developer fees
-
-
-
-
20,275
Investment income
20,800
20,800
80,270
59,470
-
Rental income
341,000
341,000
310,574
(30,426)
367,598
Loan repayments
-
-
2,048,855
2,048,855
490,398
Miscellaneous
-
12,392
12,392
366,076
Total revenues
6,608,100
6,842,779
9,225,514
2,382,735
7,236,086
Expenditures:
Current:
Planning and development
3,786,329
5,620,980
2,189,402
3,431,578
3,591,028
Total expenditures
3,786,329
5,620,980
2,189,402
3,431,578
3,591,028
Excess (deficiency) of revenues
over (under) expenditures
2,821,771
1,221,799
7,036,112
5,814,313
3,645,058
Other financing sources (uses):
Transfers out
(1,733,369)
(2,478,347)
(2,478,347)
(1,731,455)
Transfers to the City of La Quinta
_
(2,216,625)
Proceeds from sale of capital assets
150,000
990,000
668,642
321,358
1
Total other financing
sources (uses)
(1,583,369)
(1,488,347)
1,809,705
321,358
3,948,080
1
Net change in fund balances
1,238,402
(266,548)
5,226,407
5,492,955
(303,022)
Fund balances at beginning of year
3,810,148
3,810,148
3,810,148
-
4,113,170
Fund balances at end of year
$ 5,048,550
3,543,600
9,036,555
5,492,955
3,810,148
39
LA QUINTA REDEVELOPMENT AGENCY
Low/Moderate Income Housing Fund - PA No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Revenues:
Taxes
Developer fees
Investment income
Rental income
Repayment of loans
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Year ended June 30, 2005
Budget
Original Final
$ 3,115,000 3,345,543
7,054,074 7,054,074
24,100 24,100
Variance with
Prior
Final Budget
Year
Actual
Positive (negative)
Actual
i,509,241
163,698
3,031,668
-
(7,054,074)
622,305
140,742
116,642
109,504
209,669
209,669
63,580
332,747
332,747
122,422
108,569
10,193,174 10,423,717 4,192,399 6 231 318 4,058,048
5,363,759
6,047,702
1,350,908
4,696,794
562,895
5,363,759
6,047,702
1,350,908
4,696,794
562,895
Excess (deficiency) of
revenues over (under)
expenditures
4,829,415 4,376,015
2,841,491 1534,524 3,495,153
Other financing sources (uses):
Proceeds from sale of capital asset
- 8,637,300
7,897,653 (739,647) -
Transfers out
(337,867) (4,128,726)
(4,142,039) (13,313) (337,984)
Transfers to the City of La Quinta
- (3,221,318)
(3,221,318 3,437,986
Total other financing.
sources (uses) `
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(337,867)
1,287,256
534,296
4,491,548
5,663,271
3,375,787
5,702,093
5,702,093
5,702,093
$ 10,193,641
11,365,364
9,077,880
752,960 3,775,970
(2,287,484) (280,817)
5,982,910
2,287,484 5,702,093
40
I
0
0
1
0
1
0
1
SUPPLEMENTARY INFORMATION
0
0
0
0
0
1
0
0
1
1
41
1
LA QUINTA REDEVELOPMENT AGENCY
Non -Major Governmental Funds - Balance Sheet
,
June 30, 2005
Capital Projects Funds
'
Redevelopment Redevelopment
Agency - Agency - Taxable
'
Totals
PA No. 2 Bond PA No.1
2005
2004
Assets
,
Cash and investments
$ 485,119 -
485,119
1,845,134
Cash and investments
'
with fiscal agent
- -
-
8,490,446
Accounts receivable
60,900 -
60,900
60,900
Interest receivable
671 -
671
1,682 ,
Advances to the City of La Quinta
1,122,148 -
1,122,148
1,260,695
Total assets
1,668,838 -
1,668,838
11,658,857 ,
Liabilities and Fund Balances
'
Liabilities:
Accounts payable
8,170
8,170
12,084 '
Deposits payable
27,835 -
27,835
27,835
Due to the City of La Quinta
-
-
2,746,630
Total liabilities
36,005
36,005
2,786,549 ,
Fund balances:
,
Reserved for.
Advances to the City
of La Quinta
1,122,148 -
1,122,148
1,260,695 ,
Unreserved, reported in:
Capital projects funds
510,685 -
510,685
7,611,613 ,
Total fund balances
1,632,833 -
1,632,833
8,872,308
Total liabilities and
'
fund balances
$ 1,668,838 -
1,668,838
11,658,857
ALA
QUINTA
REDEVELOPMENT AGENCY
Non -Major Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
Capital Projects Funds
Redevelopment Redevelopment
Agency - Agency - Taxable
Totals
PA No. 2 Bond PA No.1
2005
2004
Revenues:
Investment income
$ 38,475 39,593
78,068
120,417
Total revenues
38,475 39,593
78,068
120,417
Expenditures:
0
Current:
Planning and development
193,088
193,088
174,152
Debt service:
Interest and fiscal charges
-
-
949,968
Total expenditures
193,088 -
193,088
1,124,120
1
Excess (deficiency) of
revenues over (under)
expenditures
154,613 39,593
(115,020)
(1,003,703)
Other financing sources (uses):
Issuance of tax allocation bonds
- -
-
26,400,000
Transfers in
5,800,000
Transfers from (to) the
1
City of LaQuinta
1,341,046 (5,783,409)
(7,124,455)
(25,475,641)
Total other financing
sources (uses)
1,341,046 (5,783,409)
(7,124,455)
6,724,359
ANet
change in fund balances (1,495,659) (5,743,816)
(7,239,475)
5,720,656
Fund balances at beginning of year
3,128,492 5,743,816
8,872,308
3,151,652
Fund balances at end of year
$ 1,632,833 -
1,632,833
8,872,308
43
AND
CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATES, L.L.P.
Board of Directors
La Quinta Redevelopment Agency
La Quinta, California
2301 DUPONT DRIVE, SUITE 200
IRVINE, CALIFORNIA 92612
(949) 474-2020
Fax (949) 263-5520
We have audited the financial statements of the La Quinta Redevelopment Agency as of and for
the year ended June 30, 2005, and have issued our report thereon dated August 18, 2005. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the La
Quinta Redevelopment Agency are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. Such provisions include those provisions of laws and regulations
identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued
by the State Controller. However, providing an opinion on compliance with those provisions was
not an objective of our audit and, accordingly, we do not express such an opinion. The results of
our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards, except as follows:
During our review of the City's Redevelopment Agency we noted that the five year
implementation plan was not filed within the required time frame. The previous plan was filed
in July 1999. The Health and Safety Code Section 33490(a)(1)(A) states than a five year
implementation plan "shall be adopted every five years ... in conjunction with the
implementation plan cycle."
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the La Quinta Redevelopment Agency's
internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide an opinion on
the internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a reportable condition in
which the design or operation of one or more misstatements caused by error or fraud in amounts
that would be material in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control over financial reporting and its
operation that we consider to be material weaknesses.
44
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
Board of Directors
La Quinta Redevelopment Agency
La Quinta, California
Page 2
This report is intended solely for the information and use of the Audit committee, management,
and the State Controller and is not intended to be and should not be used by anyone other than
those specified parties.
( ira�a•l�ASgo-ua&r L.L.P
August 18, 2005
45
ot 4-V QuiKAU
OF Fylti
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 6, 2005
BUSINESS SESSION: _
ITEM TITLE: Approval of Annual Continuing 3
Disclosure for the La Quinta Redevelopment Agency CONSENT CALENDAR:
1998, 2001, 2002 and 2003 Tax Allocation Bonds STUDY SESSION:
for Fiscal Year End June 30, 2005 --
PUBLIC HEARING:
RECOMMENDATION:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Redevelopment Agency 1998, 2001, 2002 and 2003Tax Allocation 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 Redevelopment Agency 1998 Housing Tax Allocation Bonds prepared in
accordance with the three aforementioned requirements. Additionally, no
announcement of significant events was necessary for Fiscal Year 2004/05.
In addition, the Agency has issued disclosure reports for the 2001, 2002 and 2003
RDA Tax Allocation Bond issues (Attachment 1).
FINDINGS AND ALTERNATIVES:
The alternatives available to the Redevelopment Agency Board include:
1. Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Redevelopment Agency 1998, 2001, 2002 and 2003 Tax Allocation Bonds
for Fiscal Year End June 30, 2005; or
1 . Do not approve, receive and file the Annual Continuing Disclosure for the La
Quinta Redevelopment Agency 1998, 2001, 2002 and 2003 Tax Allocation
Bonds for Fiscal Year End June 30, 2005; or
3. Provide staff with alternative direction.
Respectfully submitted,
-,tt
John M. Falconer, Finance Director
Approved for submission by:
ZY4 �n
Thomas P. Genovese, Executive Director
Attachment: 1. 2004/05 Annual Continuing Disclosure Statement for the RDA
1998, 2001, 2002 and 2003 Tax Allocation Bonds
2
ATTACHMENT 1
MuMP'inancial
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 thev 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-payinent 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.
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 www.muni.com.
CITY OFrLA QUINTA
Signature: / Date: _
Jahn Falconer, Finance Director
M
3
LA QUINTA REDEVELOPMENT AGENCY
$15, 760, 00
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION
REFUNDING BONDS, SERIES 1998
Riverside County, California
Dated: June 1, 1998
CUSIP: 504194
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at:
="'MuniFinancial02 ()
www.muni.com
21
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
MuniFinancialR
Temecula, CA 92590
(951)587-3500
Report available for viewing (a�
www.muni.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 51h Street, 24th Floor
Los Angeles, California 90071
(213) 613-6047
` In its role as Disclosure Consultant and Dissemination Agent, Muni Financial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
5
1. INTRODUCTION
Pursuant to an Official Statement dated June 1, 1998, the La Quinta Redevelopment Agency
(the "Agency") issued $15,760,000 La Quinta Redevelopment Project Area No. 1 Tax Allocation
Refunding Bonds, Series 1998, (the "1998 Bonds"). The 1998 Bonds are being issued for the
purpose of refinancing the Agency's La Quinta Redevelopment Project, Tax Allocation Bonds,
Series 1991 (the "1991 Bonds"). The 1998 Bonds are payable on a parity with the Agency's
previously issued La Quinta Redevelopment Project, Tax Allocation Refunding Bonds, Series
1994 (the "1994 Bonds"), the Agency's previously issued La Quinta Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2001 (the "2001 Bonds"), the Agency's previously
issued La Quinta Redevelopment Project Area No. 1, Tax Allocation Bonds, Series 2002 (the
"2002 Bonds") and the Agency's La Quinta Redevelopment Project Area No. 1, Tax Allocation
Bonds, Taxable Series 2003 (the "2003 Bonds") (collectively the "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.
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 1998 Bonds are special obligations of the Agency and are secured by a pledge of Pledged
Tax Revenues, as defined in the Official Statement. The 1998 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 1998 Bonds do not constitute
indebtedness 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 Agency for the benefit of the holders of the 1998 Bonds and includes the
information specified in a Continuing Disclosure Certificate. For further information and a more
complete description of the Agency and the 1998 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 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
Agency or any other parties described herein.
2004105, 1998 TAB City of La Quinta
33
Il. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds
Tax Allocation Refunding Bonds, Series 1998
B. FUND BALANCES
Fund
Reserve Fund (1)
As of November 12, 2005
$15,760,000.00
As of November 12, 2005
N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation.
l/l. 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 Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
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.
r
2004105, 1998 TAB City of La Quinta 2..
y � i
7
B. 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%
Source: County of Riverside 2005-06 secured property roll, as compiled by MuniFinancial.
C.
PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The
following table
sets forth
the amount of Gross
Tax Increment
and the
combined Debt Service
Coverage for the Bonds.
Less:
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debt
Fiscal
Gross Tax
Nonsubordinated
Housing
Pledged Pass
Net
Annual Debt
Service
Year
Increment
Pass Throughsl't
Set Aside
Revenues Throughs(2)
Revenues
Service (3)
Coverage
2001/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375 $7,025,471
$8,246,904
$3,697,867
2.23
2002/03
26,357,623
1,378,611
5,271,524
19,707,488 8,371,098
11,336,390
7,887,768141
1.43
2003/04
29,958,693
1,355,988
5,991,739
22,610,966 8,603,713
14,007,253
9,890,703
1.41
2004/05
33,867,116
1,448,192
6,773,423
25,645,501 10,455,214
15,190,287
9,890,703
1.54
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2003 Bonds, 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994
Bonds is payable in the year 2032 in the amount of $9,890,703. A portion of the Housing Set Asides is pledged towards the
payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds began in fiscal year 2003/04.
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, 1998 TAB City of La Quinta
3
8
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds, and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date
1994
1998
2001
2002
2003
Combined
September 1,
Bonds
Bonds
Bonds
Bonds
Bonds
Debt Service
2005
$2,162,044
$819,520
$2,430,720
$2,474,381
$1,999,190
$9,885,855
2006
2,161,857
819,520
2,430,720
2,475,341
1,997,018
9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2,417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
Total
$17,292 047
$30,153,600
$96,404,775
$78,000,958
$55,955,959
$276,807,339
2004105, 1998 TAB City of La Quinta
41
E. 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, 1998 TAB City of La Quinta
tt .G
5
10
LA QUINTA REDEVELOPMENT AGENCY
$6, 750, 000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 2 TAX ALLOCATION
REFUNDING BONDS, ISSUE OF 1998
Riverside County, California
Dated: June 1, 1998
CUSIP: 504194
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at:
ft MuniFinancial
www.muni.com
11
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
(760) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951) 587-3500
Report available for viewing (a�
www.muni.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
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.
t r
J
12
1. INTRODUCTION
Pursuant to an Official Statement dated June 1, 1998, the La Quinta Redevelopment
Agency (the "Agency") issued $6,750,000 La Quinta Redevelopment Project Area No. 2
Tax Allocation Refunding Bonds, Issue of 1998 (the "Bonds"). The Bonds are being
issued for the purpose of refinancing the Agency's La Quinta Redevelopment Project
Area No. 2, Tax Allocation Bonds, Issue of 1992 (the "1992 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. 2 (the "Project Area No. 2") encompasses an area of
approximately 3,116 acres, which includes approximately 14% of the total corporate
area of the City. 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 are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. 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 Continuing Disclosure 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 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 Agency or any
other parties described herein.
2004105, 1998 TAB Proj 2 City of La Quinta
A
13
I1. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of November 7, 2005
Tax Allocation Refunding Bonds, Issue of 1998 $6,130,000.00
B. FUND BALANCES
Fund As of November 7, 2005
Reserve Fund N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation.
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 Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross
Tax Increment for the Project Area No. 2.
PROJECT AREA NO. 2
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (')
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.
2004105, 1998 TAB Proj 2
City of La Quinta
2
14
B. PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and
Debt Service Coverage for the Bonds.
Fiscal Gross Tax
Year Increment
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
$4,107, 340
5,085,079
6,127,144
7,587,996
9,004,474
12,396,203
15,158, 339
17, 546, 203
Less:
Nonsubordinated
Pass Throughs t'I
$2,181,302
2,845,255
3,498,500
4,445, 548
5,903,535
7,539,849
9,225,122
10,605,577
Less:
Housing
Set Aside
$821,468
1,017,016
1,225,429
1,517,600
2,025,212
2,479,241
3,031,668
3,345,543
Pledged
Revenues
$1,104, 570
1,222,808
1,403,215
1,624,848
1,075,727
2,377,113
2,904,549
3,595,083
Maximum
Annual
Debt
Service (2)
$423,788
423,788
423,788
423,788
423,788
423,788
423,788
423,788
Maximum Annual
Debt Service
Coverage
2.61
2.89
3.31
3.83
2.54
5.61
6.84
8.48
(1) The Agency has entered into agreements with the Riverside County General Fund, Riverside County Library District, Riverside
County Fire District, Riverside County Superintendent of Schools, Coachella Valley Water District, Coachella Valley Recreation
and Parks District, Desert Sands Unified School District, and the Coachella Valley Mosquito Abatement District to pass through
Tax Increment on a nonsubordinated basis.
(2) Maximum Annual Debt Service on the Bonds is payable in the year 2024.
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the Statement of Indebtedness filed with the
Riverside County Auditor -Controller's Office.
C. LAND USE
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.
2004105, 1998 TAB Proj 2 City of La Quinta
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the Bonds.
Information contained in the table below was gathered and verified from
the Official Statement.
Maturity Date
September 1,
Principal
Interest
Debt Service
2005
$100,000
$321,292.50
$421,292.50
2006
105,000
317,042.50
422,042.50
2007
110,000
312,527.50
422,527.50
2008
115,000
307,742.50
422,742.50
2009
120,000
302,625.00
422,625.00
2010
125,000
296,475.00
421,475.00
2011
130,000
290,068.75
420,068.75
2012
140,000
283,406.25
423,406.25
2013
145,000
276,231.25
421,231.25
2014
150,000
268,800.00
418,800.00
2015
160,000
261,112.50
421,112.50
2016
170,000
252,912.50
422,912.50
2017
175,000
244,200.00
419,200.00
2018
185,000
235,231.25
420,231.25
2019
195,000
225,750.00
420,750.00
2020
205,000
215,512.50
420,512.50
2021
215,000
204,750.00
419,750.00
2022
230,000
193,462.50
423,462.50
2023
240,000
181,387.50
421,387.50
2024
255,000
168,787.50
423,787.50
2025
265,000
155,400.00
420,400.00
2026
280,000
141,487.50
421,487.50
2027
295,000
126,787.50
421,787.50
2028
310,000
111,300.00
421,300.00
2029
325,000
95,025.00
420,025.00
2030
345,000
77,962.50
422,962.50
2031
360,000
59,850.00
419,850.00
2032
380,000
40,950.00
420,950.00
2033
400,000
21,000.00
421,000.00
Total
$6,230,000
$5,989,080.00
$12,219,080.00
2004105, 1998 TAB Proj 2
City of La Quinta
16
E. 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, 1998 TAB Proj 2
City of La Quinta
5 3
17
LA QUINTA REDEVELOPMENT AGENCY
$48, 000, 000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION BONDS
SERIES 2001
Riverside County, California
Dated: August 1, 2001
CUSIP: 504194
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at:
MuniFinancial
www.muni.com
IF
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
(760) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinanciali
Temecula, CA 92590
(951) 587-3500
Report available for viewing
www.muni.com
UNDERWRITER
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 51h Street, 24'h 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.
t ;- 5
19
I. INTRODUCTION
Pursuant to an Official Statement dated August 15, 2001, the La Quinta Redevelopment
Agency (the "Agency") issued $48,000,000 La Quinta Redevelopment Project Area No. 1
Tax Allocation Bonds, Series 2001, (the "2001 Bonds"). The 2001 Bonds are being issued
to finance redevelopment projects benefiting the La Quinta Redevelopment Project Area
No. 1. The 2001 Bonds are payable on a parity with the Agency's previously issued La
Quinta Redevelopment Project, Tax Allocation Refunding Bonds, Series 1994 (the "1994
Bonds"), the Agency's previously issued La Quinta Redevelopment Project Area No. 1 Tax
Allocation Bonds, Series 1998 (the "1998 Bonds"), the previously issued La Quinta
Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 2002 (the "2002 Bonds")
and the Agency's La Quinta Redevelopment Project Area No. 1 Tax Allocation Bonds,
Taxable Series 2003 (the "2003 Bonds") (collectively the "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. 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 2001 Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The 2001 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 2001 Bonds do
not constitute indebtedness 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 Agency for the benefit of the holders of the 2001 Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information and
a more complete description of the Agency and the 2001 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 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 Agency or any other parties described
herein.
2004105, 2001 TAB City of La Quinta 1
20
11. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds
Tax Allocation Bonds, Series 2001
B. FUND BALANCES
Fund
Reserve Fund tt�
As of November 7, 2005
$2,633,200.00
As of November 7, 2005
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 Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
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.
2004105, 2001 TAB City of La Quinta 2
21
B. LAND USE
PROJECT AREA NO
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%
Source: County of Riverside 2005-06 secured property roll, as compiled by MuniFinancial.
C. PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined Debt Service Coverage for the Bonds.
Less
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debt
Fiscal
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
Service
Year
Increment
Pass Throughstll
Set Aside
Revenues
Throughs(2)
Revenues
Service (3)
Coverage
2001/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3,697867
2.23
2002/03
26,357,623
1,378,611
5,271,524
19,707,488
8,371,098
11,336,390
7,887:768141
1.43
2003/04
29,958,693
1,355,988
5,991,739
22,610,966
8,603,713
14,007,253
9,890,703
1.41
2004/05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2003 Bonds, 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994
Bonds is payable in the year 2032 in the amount of $9,890,703. A portion of the Housing Set Asides is pledged towards the
payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds begins in fiscal year 2003/04.
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, 2001 TAB
City of La Quinta
w
22
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds, and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date
1994
1998
2001
2002
2003
Combined
September 1,
Bonds
Bonds
Bonds
Bonds
Bonds
Debt Service_
2005
$2,162,044
$819,520
$2,430,720
$2,474,381
$1,999,190
$9,885,855
2006
2,161,857
819,520
2,430,720
2,475,341
1,997,018
9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2,417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
Total
$17,292,047
$30,153,600
$95,404,775
$78,000,958
$55,955,959
$276,807,339
2004105, 2001 TAB City of La Quinta 4
23
E. 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, 2001 TAB City of La Quinta
24
LA QUINTA REDEVELOPMENT AGENCY
$40, 000, 000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION BONDS
SERIES 2002
Riverside County, California
Dated: June 1, 2002
CUSIP: 504194
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at: "
MuniFinancial
www.muni.com
25
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 a(�
www.muni.com
UNDERWRITER
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
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.
26
1. INTRODUCTION
Pursuant to an Official Statement dated June 12, 2002, the La Quinta Redevelopment
Agency (the "Agency") issued $40,000,000 La Quinta Redevelopment Project Area No. 1
Tax Allocation Bonds, Series 2002, (the "2002 Bonds"). The 2002 Bonds are being issued
to finance redevelopment projects benefiting the La Quinta Redevelopment Project Area
No. 1. The 2002 Bonds are payable on a parity with the Agency's previously issued La
Quinta Redevelopment Project, Tax Allocation Refunding Bonds, Series 1994 (the "1994
Bonds"), the previously issued La Quinta Redevelopment Project Area No. 1 Tax Allocation
Bonds, Series 1998 (the "1998 Bonds"), the Agency's previously issued La Quinta
Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 2001 (the "2001 Bonds")
and the Agency's La Quinta Redevelopment Project Area No. 1 Tax Allocation Bonds,
Taxable Series 2003 (the "2003 Bonds") (collectively the "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. 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 2002 Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The 2002 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 2002 Bonds do
not constitute indebtedness 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 Agency for the benefit of the holders of the 2002 Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information and
a more complete description of the Agency and the 2002 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 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 Agency or any other parties described
herein.
2004105, 2002 TAB City of La Quinta 1
27
ll. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds
Tax Allocation Refunding Bonds, Series 2002
B. FUND BALANCES
Fund
Reserve Fund 1'1
As of November 7, 2005
$38,275,000
As of November 7, 2005
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 Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
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, 2002 TAB City of La Quinta 2
B. 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%
Source: County of Riverside 2005-06 secured property roll, as compiled by MuniFinancial.
C. PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined Debt Service Coverage for the Bonds.
Less
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debt
Fiscal
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
Service
Year
Increment
Pass Throughsl'1
Set Aside
Revenues
Throughsls)
Revenues
Service 13)
Coverage
2001/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3,697,867
2.23
2002/03
26,357,623
1,378,611
5,271,524
19,707,488
8,371,098
11,336,390
7,887,768"'
1.43
2003/04
29,958,693
1,355,988
5,991,739
22,610,966
8,603,713
14,007,253
9,890,703
1.41
2004/05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2003 Bonds, 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994
Bonds is payable in the year 2032 in the amount of $9,890,703. A portion of the Housing Set Asides is pledged towards the
payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds begins in fiscal year 2003/04.
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, 2002 TAB City of La Quinta
i
3
29
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds, and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date 1994 1998 2001 2002 2003 Combined
Seatember 1, Bonds Bonds Bonds Bonds Bonds Debt Service
2005
$2,162,044
$819,520
$2,430,720
$2,474,381
$1,999,190
$9,885,855
2006
2,161,857
819,520
2,430,720
2,475,341
1,997,018
9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9.884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2,417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9,883,008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
Total
$17,292,047
$30,153,600
$95,404,775
$78,000,958
$55,955,959
$276,807,339
2004105, 2002 TAB City of La Quinta 4
0c,
E. 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, 2002 TAB City of La Quinta
31
LA QUINTA REDEVELOPMENT AGENCY
$261400,000
LA QUINTA REDEVELOPMENT
PROJECT AREA NO. 1 TAX ALLOCATION BONDS
TAXABLE SERIES 2003
Riverside County, California
Dated: September 1, 2003
CUSIP: 504194
2005 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 6, 2005
Also available at:
MuniFinancial t. r
www.muni.com
32
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
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
TRUSTEE
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.
33
I. INTRODUCTION
Pursuant to an Official Statement dated September 10, 2003, the La Quinta
Redevelopment Agency (the "Agency") issued $26,400,000 La Quinta Redevelopment
Project Area No. 1 Tax Allocation Bonds, Taxable Series 2003, (the "2003 Bonds"). The
2003 Bonds are being issued to finance redevelopment projects benefiting the La Quinta
Redevelopment Project Area No. 1. The 2003 Bonds are payable on a parity with the
Agency's previously issued La Quinta Redevelopment Project, Tax Allocation Refunding
Bonds, Series 1994 (the "1994 Bonds"), the previously issued La Quinta Redevelopment
Project Area No. 1 Tax Allocation Bonds, Series 1998 (the "1998 Bonds"), the previously
issued La Quinta Redevelopment Project Area No. 1 Tax Allocation Bonds, Series 2001
(the "2001 Bonds") and the Agency's previously issued La Quinta Redevelopment Project
Area No. 1 Tax Allocation Bonds, Series 2002 (the "2002 Bonds") (collectively the "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. 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 2003 Bonds are special obligations of the Agency and are secured by a pledge of
Pledged Tax Revenues, as defined in the Official Statement. The 2003 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 2003 Bonds do
not constitute indebtedness 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 Agency for the benefit of the holders of the 2003 Bonds and includes
the information specified in a Continuing Disclosure Certificate. For further information and
a more complete description of the Agency and the 2003 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 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 Agency or any other parties described
herein.
2004105, 2003 TAB City of La Quinta
x
34
ll. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds
Tax Allocation Bonds, Taxable Series 2003
B. FUND BALANCES
Fund
Reserve Fund
As of November 7, 2005
$25,605,000
As of November 12, 2005
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 Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Project Area No. 1.
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.
r
2004105, 2003 TAB City of La Quinta 2
35
B. LAND USE
PROJECT AREA NO.
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%
Source: County of Riverside 2005-06 secured property roll, as compiled by MuniFinancial.
C. PLEDGED TAX REVENUES AND DEBT SERVICE COVERAGE
The following table sets forth the amount of Gross Tax Increment and the
combined Debt Service Coverage for the Bonds.
Less
Maximum
Less:
Less:
Subordinated
Maximum
Annual Debt
Fiscal
Gross Tax
Nonsubordinated
Housing
Pledged
Pass
Net
Annual Debt
(3)
Service
Year
Increment
Pass Throughst'I
Set Aside
Revenues
Throughs(2)
Revenues
Service
Coverage
2001/02
$20,929,840
$1,168,978
$4,488,487
$15,272,375
$7,025,471
$8,246,904
$3,697,867
2.23
2002/03
26,357,623
1,378,611
5,271,524
19,707,488
8,371,098
11,336,390
7,887,768141
1.43
2003/04
29,958,693
1,355,988
5,991,739
22,610,966
8,603,713
14,007,253
9,890,703
1.41
2004/05
33,867,116
1,448,192
6,773,423
25,645,501
10,455,214
15,190,287
9,890,703
1.54
(1) The Agency has entered into an agreement with the Coachella Valley Mosquito Abatement District, the Coachella Valley Water
District, and the Coachella Valley Unified School District to pass through Tax Increment on a nonsubordinated basis. Please
note, although the Coachella Valley Unified School District pass -through is presented as non -subordinated, it is non -
subordinate only to debt service on the 2002 Bonds and is subordinate to all other debt service.
(2) The Agency's subordinated pass-throughs include the County of Riverside, the Desert Sands Unified School District, and the
Desert Community College District.
(3) The combined Maximum Annual Debt Service on the 2002 Bonds, 2001 Bonds, the 1998 Bonds and the 1994 Bonds is
payable in the year 2009 in the amount of $7,890,371. The combined Maximum Annual Debt Service on the 2003 Bonds, 2002
Bonds, 2001 Bonds, the 1998 Bonds and the 1994 Bonds is payable in the year 2032 in the amount of $9,890,703. A portion
of the Housing Set Asides is pledged towards the payment of 18.5% of the debt service on the 1994 Bonds.
(4) Annual Debt Service on the 2003 Bonds begins in fiscal year 2003/04.
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, 2003 TAB
City of La Quinta
36
D. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 1994 Bonds, 1998
Bonds, 2001 Bonds, 2002 Bonds and the 2003 Bonds. Information contained in
the table below was gathered and verified from the corresponding Official
Statements.
Maturity Date
1994
1998
2001
2002
2003
Combined
September 1,
Bonds
Bonds
Bonds
Bonds
Bonds
Debt Service
2005
$2,162,044
$819,520
$2,430,720
$2,474,381
$1,999,190
$9,885,855
2006
2,161,857
819,520
2,430,720
2,475.341
1,997,018
9,884,456
2007
2,163,275
819,520
2,430,720
2,473,841
1,999,210
9,886,566
2008
2,161,629
819,520
2,430,720
2,475,391
2,000,554
9,887,814
2009
2,160,695
819,520
2,430,720
2,479,436
1,996,050
9,886,421
2010
2,159,880
819,520
2,430,720
2,475,676
2,000,163
9,885,959
2011
2,162,664
819,520
2,430,720
2,475,176
1,997,640
9,885,720
2012
2,160,003
819,520
2,430,720
2,477,681
1,998,755
9,886,679
2013
0
1,474,520
3,995,720
2,418,281
1,998,235
9,886,756
2014
0
1,475,460
3,997,470
2,413,031
1,996,080
9,882,041
2015
0
1,474,580
4,000,220
2,411,281
1,997,392
9,883,473
2016
0
1,476,880
3,998,720
2,412,781
1,996,208
9,884,589
2017
0
1,472,100
3,997,970
2,417,281
1,997,528
9,884,879
2018
0
1,475,500
3,997,720
2,414,531
1,996,040
9,883,791
2019
0
1,476,560
3,997,720
2,414,781
1,996,744
9,885,805
2020
0
1,475,280
3,997,720
2,412,781
1,999,328
9,885,109
2021
0
1,476,660
3,997,470
2,413,531
1,998,480
9,886,141
2022
0
1,475,440
3,996,720
2,416,781
1,999,200
9,888,141
2023
0
1,476,620
3,997,790
2,412,281
2,001,176
9,887,867
2024
0
1,474,940
3,997,485
2,413,856
1,999,096
9,885,377
2025
0
1,475,400
3,995,550
2,417,356
2,000,680
9,888,986
2026
0
1,472,740
3,996,730
2,417,525
1,997,434
9,884,429
2027
0
1,471,960
4,000,515
2,414,363
1,999,358
9,886,196
2028
0
1,472,800
3,996,395
2,417,869
2,000,808
9,887,872
2029
0
0
3,999,370
3,887,531
1,996,462
9,883,363
2030
0
0
3,998,675
3,888,013
1,996,320
9.883.008
2031
0
0
3,999,055
3,890,550
1,999,738
9,889,343
2032
0
0
0
7,889,631
2,001,072
9,890,703
Total
$17,292 047
$30,153,600
$95,404,775
$78,000,958
$55,955,959
$276,807,339
2004105, 2003 TAB City of La Quinta
37
E. 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, 2003 TAB City of La Quinta
C44
5
M
COUNCIL/RDA MEETING DATE: December 6, 2005
ITEM TITLE: Approval of a Professional Services
Agreement (PSA) with PW Construction, Inc. to
Provide Construction Management Services for the
Vista Dunes Courtyard Homes Project
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: _4
STUDY SESSION:
PUBLIC HEARING:
Approve a Professional Services Agreement (PSA) with PW Construction, Inc., in
an amount not to exceed $960,000, to provide construction management services
for the Vista Dunes Courtyard Homes Project, and appropriate monies from the
Low Mod Bond issue Account No. 248-000-300-290-00 to fund the expenditure
and also appropriate an additional $1,234,633 for various fees and permits related
to construction for a total appropriation of $2,194,633.
FISCAL IMPLICATIONS:
Depending on the method for delivery of service chosen by the Agency, the fee for
construction management will be between $625,000 and $960,000. The fees for
various permits associated with construction and approvals are estimated at
$1,234,633.
Adequate funding is available in the Low Mod Bond Issue Account No. 248-000-
300-290-00 to fund the expenditures.
CHARTER CITY IMPLICATIONS:
None with this action. Based upon the affordable housing exemption from the
prevailing wage requirements, this project will be bid as a non -prevailing wage job
thereby saving an estimated ten to fifteen percent on construction costs.
BACKGROUND AND OVERVIEW:
The Vista Dunes Courtyard Homes will be a wood -framed with stucco, single -story,
multi -family project. The development proposes 80 affordable rental units in a
gated community, ranging from 1 to 3 bedrooms. The project design integrates
desirable fundamentals of safety, functionality, and durability in harmony with the
surrounding neighborhood.
On October 14, 2005, the Agency authorized staff to issue a Request for Proposals
for construction management services for the project. The scope of the proposals
were to include services during the design phase such as constructability review
and value engineering, support during the bidding phase, and day to day
management services during the construction and close out phases. A selection
committee consisting of the Community Development Director, the Building and
Safety Director, Frank Spevacek (RSG) and Jon McMillan (RSG) was also
authorized at that time to rank the proposals and make a recommendation to the
Agency Board.
A total of nine firms submitted proposals and the following three were selected to
give a verbal presentation to the committee:
PW Construction Inc.
Davis Reed Construction Inc.
FPT Group Inc.
The committee selected PW Construction Inc. as the number one firm and began
negotiations. The contract is expected to extend for eighteen to twenty months
and includes options that would allow the project to be built using a "multiple
prime approach in which the Agency would award multiple contracts to the
various subcontractors and PW Construction Inc. would function as the General
Contractor. The method of service delivery will be determined at a later date based
on an analysis of the bidding climate at the time of construction.
PW Construction Inc. will be required to enter into the Agency's standard
Professional Services Agreement.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
1. Approve a Professional Services Agreement (PSA) with PW Construction,
Inc., in an amount not to exceed $960,000, to provide construction
management services for the Vista Dunes Courtyard Homes Project, and
2
appropriate monies from the Low Mod Bond issue Account No. 248-000-
300-290-00 to fund the expenditure; and
Appropriate an additional $1,234,633 for various fees and permits related to
construction for a total appropriation of $2,194,633; or
2. Do not approve a Professional Services Agreement (PSA) with PW
Construction, Inc., in an amount not to exceed $960,000, to provide
construction management services for the Vista Dunes project, and do not
appropriate an additional $1,234,633 for various fees and permits; or
3. Provide staff with alternative direction.
Respectfully submitted,
Tom Hartung
Building and Safety Director
Approved for submission by:
Thomas P. Genovese, Executive Director
3