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2006 01 11 IABi_ P.O.B(). 1:504 „w I.\ Ot ii C.vlii� it l92247-1504 78- 195 C \i i r Qt ir�, C�l.irl�ii��l� 9225 i AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 January 11, 2006 - 5:30 P.M. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call (760) 777-7000 FAX (760) 777-7101 II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on December 14, 2005 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for November 2005 VI CORRESPONDENCE AND WRITTEN MATERIAL A. La Quinta FY 04/05 Audited Financial Statements B. Month End Cash Report and other selected Financial Data - December 2005 C. Pooled Money Investment Board Reports - October 2005 VII BOARD MEMBER ITEMS VIII ADJOURNMENT �9§ CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year Ended June 30, 2005 CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 2005 Prepared by FINANCE DEPARTMENT JOHN M. FALCONER Director of Finance CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2005 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal i List of Principal Officials viii Organizational Chart ix Certificate of Award for Outstanding Financial Reporting (CSMFO) x Certificate of Achievement for Excellence in Financial Reporting (GFOA) xi FINANCIAL SECTION Independent Auditors' Report Management's Discussion and Analysis (Required Supplementary Information) 3 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 17 Statement of Activities 18 Fund Financial Statements: Governmental Funds: Balance Sheet 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 23 Statement of Revenues, Expenditures and Changes in Fund Balances 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Proprietary Funds: Statement of Net Assets 27 Statement of Revenues, Expenses and Changes in Net Assets 28 Statement of Cash Flows 29 Fiduciary Funds: Statement of Fiduciary Assets and Liabilities — Agency Funds 30 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2005 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION, (Continued Notes to the Basic Financial Statements 31 REQUIRED SUPPLEMENTARY INFORMATION: Notes to Required Supplementary Information 75 Budgetary Comparison Schedules: General Fund 76 SUPPLEMENTARY SCHEDULES: Non -Major Governmental Funds: Combining Balance Sheet 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 81 Non -Major Special Revenue Funds: Combining Balance Sheet 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 86 Budgetary Comparison Schedules: State Gas Tax Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 88 Federal Assistance Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 89 State Law Enforcement Block Grant (SLEBG) Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 90 Indian Gaming Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 91 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2005 TABLE OF CONTENTS. (Continued Paa FINANCIAL SECTION, (Continued Lighting and Landscape Fund: Schedule of Revenues. Expenditures and Changes in Fund Balances — Budget and Actual 92 Riverside County Transportation Commission (ROTC) Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 93 Quimby Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 94 Public Safety Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 95 Arts in Public Place Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual 96 Urban Forestry Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 97 South Coast Air Quality Fund: Schedule of Revenues. Expenditures and Changes in Fund Balances — Budget and Actual 98 Congestion Management Air Quality (CMAQ) Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 99 Low/Moderate Income Housing Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 100 Low/Moderate Income Housing Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual 101 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2005 TABLE OF CONTENTS, (Continued Page FINANCIAL SECTION, (Continued) Major Debt Service Funds: Budgetary Comparison Schedules: Redevelopment Agency Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 104 Redevelopment Agency Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 105 Financing Authority Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 106 Major and Non -Major Capital Projects Funds: Combining Balance Sheet 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 110 Budgetary Comparison Schedules: Capital Improvement Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 112 Redevelopment Agency Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 113 2004 Low/Moderate Income Bond Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 114 Infrastructure Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 115 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2005 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION. (Continued Transportation Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 116 Parks and Recreation Fund: Schedule of Revenues. Expenditures and Changes in Fund Balances — Budget and Actual 117 Civic Center Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 118 Library Development Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 119 County Library Development Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 120 Community Center Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 121 Street Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual I ?? Park Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 123 Fire Facility Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 124 Assessment District 2000-1 Phase VI Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 125 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2005 TABLE OF CONTENTS, (Continued) Page FINANCIAL SECTION, (Continued) Redevelopment Agency Project Area No. 2 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 126 Redevelopment Agency Taxable Bond Project Area No. 1 Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 127 Financing Authority Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 128 Internal Service Funds: Combining Statement of Net Assets 130 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 131 Combining Statement of Cash Flows 132 Agency Funds: Combining Balance Sheet 134 Statement of Changes in Assets and Liabilities 136 Capital Assets Used in the Operation of Governmental Funds: Schedule by Source 140 Schedule by Function and Activity 141 Schedule of Changes by Function and Activity 142 CITY OF LA QUINTA Comprehensive Armual Financial Report Year ended June 30.2005 TABLE OF CONTENTS. (Continued Table No. Page STATISTICAL SECTION General Fund Expenditures by Function 1 144 General Fund Revenues by Source 2 145 Property Tax Levies and Collections 3 146 Schedule of Net Taxable Value 4 147 Property Tax Rates - Direct and Overlapping Governments 5 148 Special Assessment Billings and Collections 6 149 Schedule of Direct and Overlapping Bonded Debt 7 150 Computation of Legal Debt Margin 8 151 Revenue Bond Coverage 9 152 Demographic Statistics 10 153 Property Value and Construction Activity 11 154 Principal Taxpayers 12 155 Major Employers 13 156 Schedule of Insurance in Force 14 157 Miscellaneous Statistical Data 15 158 General Fund Balance Trends 16 159 (This page intentionally left blank) �l22 1 7 15 0 1 L\ Or inr�, (.�i.iiuit�i 922,-):) August 18, 2005 r 4 gar 9 (760) 777-7000 FA\ (7G0) 7 7 7-7 111 I To the Honorable Mayor, Members of the Governing Council, and Citizens of the City of La Quinta, California: Government Code 26909 (a) requires that the City, as a local agency of the County, contract with a certified public accountant to perform an annual audit of the accounts= and records of the City and that the audit conform to generally accepted auditing standards. urther, Government Code 26909 (b) states that an audit report shall be filed with the State Controller and with the County Auditor of the County in which the d,strict is located within 12 months of the end of the fiscal year. This report is published to fulfill these requirements for the fiscal year ended June 30, 2005. In addition, City Ordinance 2.12.040 requires an annual audit be performed by a certified public accountant. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework c;; internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the oojective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Conrad & Associates, LLP, Certified Public Accountants, have issued an unqualified opinion on the City of La Quinta financial statements for the year ended June 30, 2005. The independent auditor's report is located at the front of the financial section of this report. Vianagemert's discussi,:�n and aInalysis (MD&A) immediately follows the independent ai_iditor' s rei::ort and prcviass narra I%Je i itroduc{ion, overview, and analysis of t'-r.. basic firjur:,_.,al str::, e=incr�t:. 1 The MD&A complements the letter of transmittal and should be read in conjunction with it. Profile of the Government The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City motto is "The Gem of the Desert." The City is governed by a five -member City Council under the Council/Manager form of government. The Mayor is directly elected by the citizens. The Mayor serves a two-year term and the four Council members serve four-year terms, with two Council members elected every two years. The Mayor and four council members are elected at large. The City was originally incorporated in 1982 as a general law City and it became a charter City in November 1996. The Council appoints the City Manager, who in turn appoints the Assistant City Manager and the heads of the various departments. The City of La Quinta provides a range of services which include: construction and maintenance of streets and other infrastructure; community development and planning; construction and code compliance; various recreational and cultural activities; and general municipal services. Services are also provided to the City and its citizens by contract and by the direct services of other government agencies and organizations. These services include police and fire protection through the County of Riverside, library services through the County of Riverside, visitor and tourist information through Palm Springs Desert Resorts Convention and Visitors Authority, City promotion through the La Quinta Chamber of Commerce, water and sewer service through the Coachella Valley Water District, electricity service through the Imperial Irrigation District, refuse collection through Waste Management Company, public transit through Sunline Transit Agency, and cable service through Time Warner. The City of La Quinta also is financially accountable for a legally separate Redevelopment Agency and Financing Authority. Additional information on these two legally separate entities can be found in the notes to the financial statements. Pursuant to City Ordinance 2.08.060 and 2.12.030, the City Manager and Finance Director are responsible for the preparation of the annual budget for City Council consideration prior to the start of the fiscal year. ii The annual budget serves as the foundation for the City of La Quinta's financial planning and control. The budget is prepared by fund, function, department and line item. Department heads may transfer line item resources within a division with the approval of the City Manager. Transfers between divisions and departments need approval from the City Council and the City Manager. Local economy According to the State of California Economic Development Department (EDD), as of July 2005, the total workforce for the City of La Quinta was 13,800 of which 13,400 were employed for a 2.7% unemployment rate. This rate is significantly lower than the Riverside County unemployment rate of 5.5% and the statewide unemployment rate of 5.4%. During the last ten years, the City of La Quinta has been in a growth phase with net assessed values increasing from $2.06 billion in FY 95/96 to $6.34 billion or over 300%. This major increase in assessed value consists primarily of residential development; however, in the last two years major commercial development has occurred along the Highway 111 corridor. New commercial development includes the recent opening of the following retailers in alphabetical order: Circuit City, Kohl's, Marshals, Petsmart, Ross Dress 4 Less, SteinMart, Target, Wal-Mart. These compliment the Home Depot and Lowes that have previously located in the City. In addition, the City is anticipating the opening of an Embassy Suites Hotel, Homewood Suites Hotel, Sams Club, and Costco in 2006. One auto dealer, the Mazda Superstore, has closed and was replaced by a Kia dealership and the local Chevrolet dealership has indicated that they may move from their present location of over twenty years to a neighboring city. The City of La Quinta is also home to many fine restaurants, which include the Hogs Breath Inn, Arnold Palmer Restaurant, LG's and The Falls Prime Steak houses, the Cliff House and Omri and Boni's. The City of La Quinta has transformed itself from a retirement community known as the "Gem of the Desert" and the western home of golf to a year-round full - service community. Major employers include the hospitality industry — the La Quinta Resort and Club, PGA West, Desert Sands Unified School District, Wal-Mart, Rancho La Quinta, and Lowe's. i i 1 During the past ten years, the City of La Quinta general fund expenditures have increased 360%. Departments that have exceeded the average include Public Works (832%), Community Services (555%) and Public Safety (393%). In the case of Public Works, much of the increase can be attributed to increases in street, landscape and park maintenance costs. Community Services increases can be attributed to opening the Senior Center, and increases in recreational and community outreach programs. In the case of Public Safety, much of the increase is reflected in increased police and fire service personnel costs and higher levels of service. During the same ten-year period, the City of La Quinta general fund revenues increased 409%. Sources that exceeded the average include intergovernmental (1010%), charges for services (617%) and interest earnings (451 %). In the case of intergovernmental revenues, most of the increase is attributable to the way the fire service contract is accounted for and an increase in motor vehicle fees. The Charges for Services increase is due to the volume of activity occurring in the City, and in the case of interest, the increase is due to greater General Fund reserves and additional advances between the General Fund and the Redevelopment Agency. Long-term financial planning Each year the City embarks on a strategic planning process which begins in the spring with a discussion of the City Council goals and ends with adoption of the budget in June. The documents that are generated in this strategic planning process include a presentation of the financial achievements for the past fiscal year, a five-year cash flow projection for each City, Redevelopment Agency and Financing Authority fund, and a financial management strategies and recommendation report for the coming fiscal year. Within the financial strategies and recommendation report, a "build out" analysis is included, which estimates the annual General Fund revenue (inflows) and expenditures (outflows) in thirty years. This build out analysis is updated every three years based upon future land use designations, existing land use and population projections. This build out report projects that in thirty years, with an estimated population of 68,500 versus the current 35,000, the annual revenues into the General Fund will be $18.9 million less than expenditures. With this information, the City of La Quinta is attempting to attract revenue -producing businesses and hotels consistent with its land use planning, while at the same time providing current and future residents a level of service that makes them proud to call La Quinta their home. During Fiscal Year (FY) 04/05, the General Fund balance increased by $9.2 million consisting of revenue increases in each category: taxes, license and permit fees, iv charges for services, intergovernmental and interest earnings. In addition, expenditures were less than budgeted in police, fire and street operation divisions. The General Fund Balances as of June 30, 2005 was $63.9 million of which $32.4 million was reserved and $31.5 million was unreserved with designations. These designations include an emergency reserve set at 35% of the annual budget plus $4,000,000 and a cash flow reserve of 8.25% of the annual budget. Other designations of the General Fund balances at year end can be found in the Footnotes to the Financial Statements. Additional components of the strategic planning process include the Economic Development Plan, the Capital Improvement Program, the Annual Budget and the Five -Year Resource Allocation Plan. An explanation of each of these documents is provided below. Economic Development Plan This plan outlines a vision and direction for the City's economic development activities. It presents the mission statement, implementation policies, projected resources, and business plan the City and the La Quinta Redevelopment Agency will follow to sustain a comprehensive economic development effort. It is goal - oriented in that the economic development efforts specified in the plan are a key to generating the financial resources necessary to support both the Resource Allocation Plan and the Capital Improvement Plan. Capital Improvement Plan This plan is primarily a planning document that establishes five-year funding priorities for capital improvements. This plan also includes a listing of all the other desired capital improvements that cannot, or need not, be funded within the five- year horizon and totaled $78.1 million. Five -Year Resource Allocation Plan This plan is primarily a planning document that provides a five-year horizon for forecasted operational needs of each department, as well as the City as a whole. This plan is a cyclical review of all operations expenditures to reassess funding mechanisms behind personnel responsibilities and the various service levels of all programs. Annual Budget This document is the annual implementation tool for the overall planning process. The budget will encompass each element of the strategic planning effort and will implement: the goals of the Economic Development Plan; the resource and demand allocation outlined in the Five -Year Resource Allocation Plan; and the capital improvement investment for a given year. v Relevant financial policies The State of California has mandated that the City of La Quinta, pursuant to State of California Revenue and Taxation Code Section 97.70, contribute $332,000 from the General Fund in FY 04/05 and a similar amount in FY 05/06 to meet the State budget crisis. Also, since FY 02/03 through FY 04/05, the La Quinta Redevelopment Agency has contributed $5 million to the State of California pursuant to State of California Health and Safety Code 33681.12 to meet its budget shortfalls. The La Quinta Redevelopment Agency contribution in FY 04/05 was $2.7 million and it is anticipated that an additional $3 million contribution will be made in FY 05/06. The $8.65 million of funds that either have or will be diverted to the State will not be available for uses within the City of La Quinta. The City of La Quinta did receive $516,000 in August 2005 that had previously been withheld by AB 1457 from the State. This Vehicle License Fee Backfill Gap Loan shift has been recognized in the General Fund in FY 04/05, as it was measurable and available as of June 30, 2005 and it pertained to a prior accounting period. Major initiatives The City has been working with the Coachella Valley Association of Governments in acquiring right of way ($6 million) in the City of La Quinta to widen Jefferson Street between Highway 111 and Interstate 10 from two lanes to six lanes. The construction phase ($23 million) is now underway with improvements to include the construction of a six -lane bridge over the Whitewater Channel, which will provide an all-weather crossing. Last year, the low-water crossing at Jefferson Street and the Whitewater Channel was washed out several times from winter rains that hit the region. The La Quinta Financing Authority issued $90 million in bonds ($65 million in new funds) to develop low and moderate income housing to meet State mandates. The La Quinta Redevelopment Agency will be repaying the debt service from the bond issue with property tax increment funds. The Agency will be spending a considerable amount of effort to acquire sites and facilitate the development of these units in the upcoming years. The La Quinta Redevelopment Agency acquired a 525-acre parcel at Avenue 52 and Jefferson Street for the development of two golf courses, a clubhouse, and future hotel resort development. The first golf course was dedicated in January 2005 and the Agency is working with a developer in the planning stages for a future hotels) and the second golf course. vi Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of La Quinta for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2004. This was the eighth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated service of the finance department staff. Credit also must be given to the Mayor and City Council for their support in maintaining the highest standards of professionalism in the management of the City of La Quinta's fi nances. Respectfully submitted, Thomas P. Genovese John M. Falconer City Manager Finance Director vii City of La Quinta Directory of Officials June 30, 2005 CITY COUNCIL Don Adolph, Mayor Stanley Sniff, Mayor Pro Tem Terry Henderson, Council Member Lee Osborne, Council Member Ronald Perkins, Council Member ADMINISTRATION Thomas P. Genovese, City Manager Mark Weiss, Assistant City Manager John M. Falconer, Finance Director Tom Hartung, Building & Safety Director Doug Evans, Community Development Director Kathy Jenson, City Attorney Dodie Horvitz, Community Services Director June Greek, City Clerk Tim Jonasson, Public Works Director/City Engineer /\m = 0 22( £}0 %\\ . \e= > 3 L� . f aE }ƒ! _6 20»>m « ! « x» )&:( {)\)ƒ\\EEo«a}ute«i«{:\e,7E \\\\\f\ƒ6)\d\2\&%)\/ CD j$oE.o.. /®®t` -- K`y7K - ` - : - , , ) : { § f { 3 _)t}))! ,«ƒ+§%\j\1a.a =92T !a e ,%f§:=1= )k)U)S;u � /}/){°`mf(I« ��,�,,r,g::ma// )f�f);fj)afaE!#;;;7%�= `< ®j)®))\/)°` /)/a. u N O a N U N ro Certificate of Achievement for Excellence in Financial Reporting Presented to City of La Quinta, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. 12 .iOf INN ce NFq�� V UNREOTAM " 9 f CANMA CURPURAMN s President W>,� spar, Doti µi�wC6 ,Q Executive Director xi (This page intentionally left blank) xu CONRADAND CERTIFIED PUBLIC ACCOUNTANTS 2301 DUPONT DRIVE, SUITE 200 ASSOCIATES, LA_.P. IRVINE, CALIFORNIA 92612 (949) 474-2020 Fax (949) 263-5520 The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major find, and the aggregate remaining fund information of the City of La Quinta, California as of and for the year ended June 30, 2005, which collectively comprise of the City's basic financial statements, as listed in the accompanying table of contents. These financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Goverrvncia Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. h� our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2005, and the respective changes in financial position and cash flows, where applicable, of the City of La Quinta, California and the respective budgetary comparison information for the general fund and major special revenue funds of the City for the year then ended in conformity with accounting principles generally accepted in the United States of America. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementar.v information are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. 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. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION The Honorable Mayor and City Council City of La Quinta La Quinta, California Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City of La Quinta's basic financial statements. The introductory section combining and individual nonmajor fund financial statements and statistical schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 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 Management's Discussion and Analysis As management of the City of La Quinta, we offer readers of the City of La Quinta's financial statements this narrative, overview and analysis of the financial activities for the fiscal year ended June 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in an earlier section of this report. All amounts, unless otherwise indicated, are rounded to the nearest thousands of dollars. Financial Highlights • The assets of the City of La Quinta exceeded its liabilities at the close of the most recent fiscal year by $377,818,000 (net assets). Of this amount, $60,284,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $38,387,000. $41,832,000 of this increase is attributable to the new Business -type Activity — SilverRock Golf Course. • As of the close of the current fiscal year, the City of La Quinta's governmental funds reported combined ending fund balances of $177,542,000, a decrease of $2,427,000 in comparison with the prior year. Approximately 8 percent of this total amount, $14,643,000, is available for spending at the government's discretion (unreserved, undesignated fund balance). • At the end of the current fiscal year, the operations/projects/transfers designations comprised $10,699,419 or 42 percent of total general fund budgeted expenditures. • The City of La Quinta's total debt decreased by $2,801,000 during the current fiscal year from $254,321 ,000 to $251,520,000 through normally scheduled debt service payments. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of La Quinta's basic financial statements. The City of La Quinta's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of La Quinta's finances, in a manner similar to a private - sector business. The statement of net assets presents information on all of the City of La Quinta's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of La Quinta is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of La Quinta that are principally supported by taxes and intergovern- mental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of La Quinta include general government, public safety, community services, community development and public works. The business -type activities of the City of La Quinta include the SilverRock Golf course operations. The government -wide financial statements include not only the City of La Quinta itself (known as the primary government), but also the La Quinta Redevelopment Agency and the La Quinta Financing Authority. Although, legally separate entities, function for all practical purposes as departments of the City of La Quinta, and therefore has been included as an integral part of the primary government. The government -wide financial statements can be found in the table of contents under the Financial Section this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of La Quinta, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of La Quinta can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 4 Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial state- ments. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the govern- ment -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of La Quinta maintains thirty five (35) individual governmental funds, which are distinguished between major and non -major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, three (3) debt service funds and three (3) capital project funds. These seven (7) funds are considered to be major funds. Data from the other twenty eight (28) governmental funds are combined into a sin- gle, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of La Quinta adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found in the table of contents under the heading Basic Financial Statements. Proprietary funds Proprietary funds can be broken down into enterprise and internal service funds. The City of La Quinta maintains one (1) proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of La Quinta uses an enterprise fund to account for its SilverRock Golf Course operations, which is considered to be a major fund. Internal service funds are an accounting 5 device used to accumulate and allocate costs internally among the City of La Quinta's various functions. The City of La Quinta has three (3) internal service funds to account for its major equipment replacement including vehicles, for its information technology systems, and for its park equipment and facility needs. Because these three services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report The basic proprietary fund financial statements can be found on the pages listed in the table of contents for Proprietary Funds: Statement of Net Assets, Statement of Revenues, Expenditures and Changes in Net Assets, 'and Statement of Cash Flows. Fiduciary funds Fiduciary funds, also called agency funds, are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of La Quinta's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on the pages listed in the table of contents for Fiduciary Funds: Statement of Fiduciary Assets and Liabilities — Agency Funds. Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements: The notes to the financial statements can be found on the pages listed in the table of contents for Notes to the Basic Financial Statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of La Quinta's General Fund and its budget appropriations. Required supplementary information can be found in the table of contents under the section Required Supplemental Information and includes Notes to the Required Supplementary Information and a General Fund Budgetary Comparison Schedule. The combining statements referred to earlier in connection with non -major govern- mental funds, internal service funds, and agency funds are presented immediately following the required supplementary. Combining and individual fund statements and schedules can be found in the table of contents under Supplementary Schedules. 0 Government -wide financial analysis As noted earlier, net assets may serve over time as a useful indicator of a govern- ment's financial position. In the case of the City of La Quinta, assets exceeded liabilities by $377,818,000 at the close of the most recent fiscal year, which is $39,173,000 greater than the previous year. The largest portion of the City of La Quinta's net assets (50 percent versus 74 percent in the prior year) reflects its investment in capital assets (e.g., land, buildings; machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of La Quinta uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of La Quinta's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of La Quinta Net Assets Current and other assets Governmental activities 2005 2004 $ 204,173,979 $ 206,488,111 Business -type activities 2005 2004 $ (270,691) $ Total 2005 $ 203,903,288 $ 2004 206,488,111 Capital assets Total assets 397,555,192 601,729,171 398,685,644 605,173,755 42,102,263 41,831,572 439,657,455 643,560,743 398,685,644 605,173,755 Current liabilities 13,866,654 12,208,061 355,967 14,222,621 12,208,061 Non -current liabilities 250,718,460 254,320,900 801,417 251,519,877 254,320,900 Total liabilities 264,585,114 266,528,961 1,157,384 265,742,498 266,528,961 Net assets: Invested in capital assets, net of related debt 147,385,759 249,059,500 41,300,846 188,686,605 249,059,500 Restricted 129,397,065 44,415,966 - 129,397,065 44,415,966 Unrestricted 60,361,233 45,169,328 (626,658) 59,734,575 45,169,328 Total net assets $ 337,144,057 $ 338,644,794 $ 40,674,188 $ $ 377,818,245 $ 338,644,794 An additional portion of the City of La Quinta's net assets (34 percent versus 13 percent in the prior year) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets - $59,735,000 (16 percent versus 13 in the prior year) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of La Quinta is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental activities; however, the business type unrestricted net assets had a deficit of $627,000. There was an increase of $41,301,000 in the investment in capital assets (e.g., land, buildings; machinery, and equipment), less any related debt used to acquire those assets that is still outstanding in restricted net assets reported in connection 7 with the City of La Quinta's business -type activities. This increase was a result of recording the assets of the SilverRock Golf Course in the fiscal year. Governmental activities Governmental activities decreased net assets by $1,500,737 accounting for less than a 1 percent change in the net assets from the previous year. Key elements of these changes are as follows: City of La Quinta Changes in Net Assets Governmental Business -type activities activities Total Revenues: 2005 2004 Change 2005 2004 Change 2005 2004 Change Program revenues: Charges for services 8,706,920 7,071,404 1,635,516 1,091,836 1,091,836 9,798,756 7,071,404 2,727,352 Operating grants and contributions 1,935,578 1,799,503 136,075 1,935, 578 1,799,503 136,075 Capital grants and contributions 18,591,423 12,090,143 6,501,280 18,591,423 12,090,143 6,501,280 General revenues: transfers revenues net assets • Revenues increased by $19,633,000 with the two largest category increases in capital grants and contributions ($6,501,280) and gain on sale of capital assets ($3,717,470). Capital grants and contributions increases were a result of increased developer impact fee collections, Quimby fee collections and interest income generated from unspent bond capital proceeds. The gain on the sale of property stemmed from Redevelopment Agency property sold at Miles Avenue and Washington Street and Avenue 48 and Adams Street for more than was paid. Both of these properties had been purchased in 1995. • Expenditures increased by $4,173,000 with the two largest category increases in interest on long-term debt ($5,606,000) and Public Works ($3,098,000). The increase in debt service costs is a result of the $90 million Financing Authority bond issue debt service payments, which began in the fiscal year. The increase in the Public Works costs is a result of a large slurry seal program expenditure in the fiscal year and increasing lighting/park maintenance costs. E✓ • A transfer out of $41,460,000 in assets from the governmental activities to the business -type activities which consist of land and improvements for the SilverRock Golf course. 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 General government 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200 000 Expenses and Program Revenues - Government Activities 8,512,875 5,752,239 4,719,069 3,030,130 1,)99,396 1,157,1 1 Public safety Community Planning and services development 19,039,663 Public works 15,265,051 Interest e)pense Expenses and Program Revenues - Business -type Activities Business -type activities Golf 0 Expenses L. Program revenues'.... j0 Expenses In Program revenues This was the first year for the SilverRock Golf fund since the golf course began early operation in 2005. Net assets increased to $40,674,000 from the transfer of assets from the governmental activities of $41,460,000 and an operating loss of $(785,000). 0 Charges for services primarily consisted of green fees and totaled $1,092,000 with golf course expenses of $1,877,000. Financial Analysis of the Government's Funds As noted earlier, the City of La Quinta uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds - The focus of the City of La Quinta's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of La Quinta's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of La Quinta's governmental funds reported combined ending fund balances of $177,542,000, a decrease of $2,427,000 in comparison with the prior year. Approximately 26 percent of this total amount ($45,377,000) constitutes unreserved, which is available for spending at the government's discretion. The remainder of fund balance ($132,165,000) is reserved or designated to indicate that it is not available for new spending because it has already been committed 1) to pay debt service ($4,602,000), 2) to pay for bond -related capital improvement projects ($85,970,000), 3) to advance funds to other funds ($38,966,000), or 4) for a variety of other restricted purposes ($2,627,000). General Fund The general fund is the chief operating fund of the City of La Quinta. At the end of the current fiscal year, unreserved fund balance of the general fund was $31,514,000, while total fund balance reached $63,927,000. As a measure of the general fund's liquidity, it may be useful to compare the fund balance total budgeted expenditures (including transfers out). The total fund balance represents 217 percent of the total budgeted expenditures. The City of La Quinta's general fund balance increased by $9,222,000 during the current fiscal year. Key factors in this growth are as follows: • An increase of $4,011,000 in taxes over the final budget, of which $1,367,000 was in sales taxes (1 percent of the 7.75 percent collected going to the City), and $853,000 was in document transfer taxes, signifying the new building and strong resale market occurring in the City. • An increase of $1,929,000 in charges for services over the final budget, which represents increased development and building activity in the Public Works, Community Development and Building and Safety departments. 10 • An increase of $2,255,000 in licenses and permits over the final budget, which represents increased development and building activity in the Building and Safety department. • An increase of $1,156,000 in intergovernmental revenue over the final budget, which represents increased motor vehicle fees of $998,000 and fire service credit revenues of $1 1 7,000. In FY 04/05, the State of California changed the methodology of allocating vehicle fees from primarily a per capita basis to a property tax basis. Therefore, instead of the City receiving a monthly remittance of the vehicle fees from the State, it now receives a payment in January and a payment in May from the County of Riverside. Redevelopment Agency Project Area 2 Debt Service Fund The Redevelopment Agency Project Area 2 Debt Service Fund is used to accumulate resources, primarily property taxes, to pay debt service. The fund balance increased by $3,865,000 during the current fiscal year. The key factor in this growth was the sale of property at Washington Street and Miles Avenue that generated $3,147,000 for the fund. Redevelopment Agency Project Area 1 Capital Project Fund The Redevelopment Agency Project Area 1 Capital Project Fund is used to account for bond proceeds and other funding that is used for the development, planning, construction and land acquisition in the project area. The fund balance decreased by $16,962,000 during the current fiscal year. The key factor in this decrease was the funding of $16,314,000 for the SilverRock project and $854,000 for the Eisenhower Drive Rehabilitation and Median Island project. Proprietary funds The City of La Quinta's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The financial activities of the City enterprise fund have already been addressed in the discussion of the City of La Quinta's business -type activities. In addition, the City has three (3) internal service funds to accumulate resources for equipment and vehicle replacement, information technology activities, and for park equipment and facility replacement. General Fund Budgetary Highlights During the year there was a $2,561,000 increase in appropriations between the original ($22,915,000) and final amended budget ($25,610,000). Following are the main components of the increase: 11 • $519,000 supplemental appropriation to the building and safety division for additional building plan check and inspection services; • $975,000 supplemental appropriation to the street maintenance division for slurry seal road improvements; • $466,000 supplemental appropriation to the lighting and landscape division for additional lighting and landscape maintenance costs. The increase was possible because of additional anticipated revenues. Capital Asset and Debt Administration Capital assets The City of La Quinta's investment in capital assets for its governmental and business -type activities as of June 30, 2005, amounts to $439,657,000 (net of accumulated depreciation). This investment in capital assets includes land, right of way, buildings and improvements, machinery and equipment, streets and bridges, and construction in progress. The investment in capital assets slightly decrease this fiscal year from the sale of properties and from depreciation expenses exceeding new purchases. The following chart lists the asset categories for governmental and business like activities net of depreciation. City of La Quinta Capital Assets (net of depreciation) Governmental Business -type activities activities Total 2005 2004 2005 2004 2005 2004 Land $ 57,727,433 $ 73,505,659 $ 34,977,525 $ - $ 92,704,958 $ 73,505,659 Buildings and improvements 21,531,191 24,677,430 6,125,666 - 27,656,857 24,677,430 Equipment and furnkure 557,774 1,583,727 980,759 - 1,538,533 1,583,727 Vehicles 455,185 1,224,147 18,313 - 473,498 1,224,147 Infrastructure 289,489,496 330,958,870 - - 289,489,496 330,958,870 Construction in progress 27,794,113 27,932,823 - - 27,794,113 27,932,823 Total $ 397,555,192 $ 459,882,656 $ 42,102,263 $ - $ 439,657,455 $ 459,882,656 Major capital asset events during the current fiscal year included the following! Governmental activities • Recording the land, building, and equipment for the north fire station, which totaled $3,635,000; • Recording the land, park buildings and equipment in the park equipment and facility internal service fund, which totaled $14,216,000; 12 • Recording infrastructure improvements, including developer dedications of $5,796,000, to street improvements, street right of way, street sidewalks and curbs and gutters, and street median, which totaled $14,601,000; • Recording the land and acquisition costs for the Vista Dunes Mobile Home Park, which totaled $4,486,000; • Recording the sale of land in the Redevelopment Agency, which had a cost basis of $4,742,000; and, • Recording the transfer of assets, which was primarily land from the Redevelopment Agency to the SilverRock Golf Enterprise Fund had a cost basis of $17,156,000. Business -type activities • Recording the land, temporary clubhouse, maintenance building, and golf course for the first golf course at SilverRock Resort, which totaled $ 42,102,000. Additional information on the City of La Quinta's capital assets can be found in Footnote 5 to the financial statements. Long-term debt At the end of the current fiscal year, the City of La Quinta had total bonded debt outstanding of $250,718,000. $155,395,000 of this debt amount represents bonds secured solely by specified revenue sources (i.e., tax allocation bonds); while, $94,522,000 of the debt represents revenue bonds that will be paid from pledged tax increment property tax housing funds. In addition, $801,000 in capital equipment leases are outstanding in connection with SilverRock Golf Course. City of La Quinta Outstanding Debt Governmental Business -type activities activities Total Debt type: 2005 2004 2005 2004 2005 2004 Capital leases $ - $ - $ 801,417 $ $ 801,417 $ Tax allocation bonds 155,394,985 159,506,557 - 155,394,985 159,506,557 Revenue bonds 94,522,058 94,814,343 - 94,522,058 94,814,343 Total $ 249,917,043 $ 254,320,900 $ 801,417 $ $ 250,718,460 $ 254,320,900 The City of La Quinta's total debt decreased by $2,801,000 during the current fiscal year. Additional information on the City of La Quinta's long-term debt can be found in notes 6 through 13 of the financial statements. 13 Economic Factors and Next Year's Budgets and Rates These factors were considered in preparing the City of La Quinta's budget for the 2006 fiscal year: • The City of La Quinta had a 2.7 percent unemployment rate. This rate is significantly lower than the Riverside County unemployment rate of 5.5 percent and the statewide unemployment rate of 5.4 percent. • During the last ten years, the City of La Quinta has been in a growth phase with net assessed values increasing from $2.06 billion in FY 95/96 to $6.34 billion or over 300 percent. • During the current fiscal year, the general fund net income was $9,222,000. $1,070,000 of this amount has been designated to the general fund for carry over appropriations and encumbrances. The City of La Quinta adopted a balanced general fund budget for FY 05/06. Requests for Information This financial report is designed to provide a general overview of the City of La Quinta's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of La Quinta, John Falconer, Finance Director, P.O. Box 1504, La Quinta, CA, 92247. 14 BASIC FINANCIAL STATEMENTS 15 Assets: Cash and investments (note 2) Cash and investments Avith fiscal agent (note 2) Accounts receivable Tales receivable Prepaid items Interest receivable Notes receivable (note 4) Internal balances Due from other governments Deposits Inventory Capital assets (note 5): Land Right of way Construction in progress Other capital assets. net Total assets Liabilities: Accounts payable Accrued salaries and benefits Interest payable Deferred revenue Deposits payable Retentions payable Due to other governments Noncurrent liabilities (notes 6 to 13) Due Within one year Due in more than one year Total liabilities Net assets: hnvested in capital assets, net of related debt Restricted for: CITY OF LA QUINTA Statement of Net Assets June 30, 2005 Govennmental Business -type Activities Activities S 97,180,820 - Totals 2005 2004 97.186.820 89.936.019 85.975.369 - 8-5 975,369 95,474.813, 191,200 44.697 235,897 J 15.984 787.752 - 787.752 353,361 5,57,017 - 557,017 292,916 669.888 - 669,889 415,681 12.858,098 - 12,858,098 12,741,527 687.598 (687,598) - - 5259.127 - 5_259,127 6.511,052 1.110 250,000 251,110 246 858 - 122,210 122,210 - 57.727.433 34,977,525 92,704.959 73,505,659 246299.394 - 246299,394 234280,023 27 794,113 - 27,794,113 27,932,823 65,734252 7,124,738 72,858,990 62,967.139 601,729.171 41.831,572 643.560.743 605,173,755 3,965,041 441.2)43 4.381.316 2915.411 2,158,731 4,912 316.980 3.197 l 0,800 25.000 4282,021 444,430 4,381,316 10,800 2,940.41 1 2,158,731 4,912 4,950,050 153,673 5,103,723 245,768.410 647,744 246.416,154 264.585.114 1,157— 94 265,742.498 5.393.144 376210 3A23,766 2,125238 726,299 163,404 5,016,762 249,304.138 266,528.961 274,641,045 41,300,846 315,941,991 249,059,500 Public safety 2,845,076 - 2.845,076 8,413 Community services 58,963,246 - 58.963,246 58,393,632 Planning and development 29.050,880 - 29050,880 17,408,711 Public works 38,537.862 - 38,537,862 26262,192 Unrestricted (667894,052) (626,658) (67,520,710) (12487,654) Total net assets $ 337,144,057 40.674,188 377,818.245 338,644,794 See accompanying notes to the basic financial statements 17 CITY OF LA QUINTA Statement of Activities Year ended June 30, 2005 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Governmental activities General government $ 3,595,906 445,663 - - Public safety 8,512,875 4,438,115 280,954 - Commnunity services 1,157,141 252,501 818,951 1,959,678 Planning and development 5,752,239 754,938 - 1,244,458 Public works 9,101,582 2,815,703 835,673 15,388,287 Interest expense 15,265,051 - - - Total govenuriental activities 43,384,794 8,706,920 1,935,578 18,591,423 Business -type activities: Golf course 1,877,291 1,091,836 - - Total $ 45,262,085 9,798,756 1,935,578 18,591,423 General revenues: Taxes: Property taxes Tax increment Sales taxes Transient occupancy taxes Franchise taxes Other taxes Investment income Motor vehicle in lieu Gain on sale of capital assets Miscellaneous revenues Transfers Total general revenues and transfers Change in net assets Net assets at beginning of year Net assets at end of year See accompanying notes to the basic financial statements. 18 Net (Expense) Revenue and Changes in Net Assets Governmental Business -type Totals Activities Activities 2005 2004 (3.150,243) - (3,150243) (3,982,402) (3,793,806) - (3,793,806) (6,131,980) 1.872989 - 1,872,989 193220 (3,752,843) - (3.752.843) (6,743.750) 9.938.081 - 9.938,081 8,072-732 (1 >.26i ,051) _05,265,051) (9.658.779) (14.150.873) - (14,150,873) (187250,959) - (785,455) (785.455) - (14,150..873) (785,455) (14.936,328) (18,2-50,959) 2579245 - 2_579.24 2.198.141 24.443.112 - 24,443,112 24,450.337 6,773,566 - 6,773, 66 5240,037 4.831.338 - 4.931338 4,261,767 1.195,087 - I ,185,097 995,910 1,392.795 - 1,392,795 867,058 4.336.050 - 4,336.050 1.738.505 2.453.642 - 2,453,642 1,608,151 3.717.470 - 3,717,470 - 2.397.474 - 2,397,474 1,499,612 (41,459.643) 41,459,643 - - 12.650.136 41.459,643 54.109.779 42,749A18 (I.500,737) 40,674-188 39,173,451 24498,459 339,644,794 - 338.644,794 314,146.335 $ 337,144,057 40,674,188 3'77,818,245 339,644,794 19 CITY OF LA QUINTA Governmental Funds - Balance Sheet June 30, 2005 Assets Cash and investments Cash with fiscal agent Accounts receivable Taxes receivable Prepaid items Interest receivable Notes receivable (note 4) Due from other funds (note 19) Due from other governments Advances to other funds (note 19) Deposits Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued salaries and benefits Deferred revenue Deposits payable Retentions payable Due to other governments Due to other funds (note 19) Advances from other funds (note 19) Total liabilities Fund Balances: Fund balances (deficits) (note 22): Reserved for: Debt service Bond projects Prepaid items Notes receivable Advances to other funds Deposits Unreserved, reported in (note 25): General fund Special revenue funds Debt service funds Capital projects funds Total fund balances Total liabilities and fund balances Debt Service Funds Redevelopment Redevelopment Agency - Agency - Financing General PA No. 1 PA No. 2 Authority $ 30,317,219 17,912,730 10,328,387 5,048 - 100 - 62 47,551 - - - 787,752 - - - 507,931 - - - 302,562 81,147 57,230 - - - - 90,000,000 3,894,522 - - - 4,464,974 338,499 171,204 - 31,904,659 - - - $ 72,227,170 18,332,476 10,556,821 90,005,110 $ 2,196,815 3,395 855 1,750 437,219 - - - 2,924,223 - - 90,000,000 2,737,034 - - - 4,912 - - - - 13,727,340 17,795,380 - 8,300,203 13,730,735 17,796,235 90,001,750 4,601,741 - - 507,931 - - - 31,904,659 - - - 31,514,377 - - (7,239,414) 3,360 63,926,967 4,601,741 (7,239,414) 3,360 $ 72,227,170 18,332,476 10,556,821 90,005,110 See accompanying notes to the basic financial statements. 20 Capital Projects Funds Redevelopment Other Capital Agency - 2004 Governmental Totals Improvement PA No. 1 Low/Mod Bond Funds 2005 2004 3,797,838 - - 31,398,993 93,760,215 86,851,627 - 27,809,770 58,160,341 5,096 85,975,369 95,474,813 _ _ - 143,649 191,200 515,984 - 787,752 353,361 _ - - 507,931 292,816 _ 19 55,935 155,101 651,994 404,038 _ - 12,858,098 102,858,098 102,741,527 - 3,894,522 2,783,283 104,877 - - 179,573 5,259,127 6,507,120 - 5,938,879 - 1,122,148 38,965,686 34,007,241 _ _ - 1,110 1,110 246,858 3,902,715 33,748,668 58,216,276 45,863,768 332,853,004 330,178,668 1,598,072 33,872 - 109,296 3,944,055 5,364,260 - - - 437,219 376,210 14,034 - - 10,740,225 103,678,482 104,664,043 131,878 - - 46,499 2,915,411 2,125,238 2,158,731 - - - 2,158,731 726,299 - _ - 4,912 163,404 - 3,273,200 121,575 194,088 3,588,863 2,783,283 - - - 7,061,027 38,583,747 34,007,241 3,902,715 3,307,072 121,575 18,151,135 155,311,420 150,209,978 4,601,741 4,088,071 - 27,809,770 58,160,341 - 85,970,111 86,929,041 _ _ - 507,931 292,816 _ _ - 2,117,873 2,117,873 2,123,425 - 5,938,879 - 1,122,148 38,965,686 34,006,546 _ _ - 1,110 1,110 246,858 - 31,514,377 25,494,479 19,267,394 19,267,394 9,286,459 - (7,236,054) (11,099,245) - (3,307,053) (65,640) 5,204,108 1,831,415 28,600,240 - 30,441,596 58,094,701 27,712,633 177,541,584 179,968,690 3,902,715 33,748,668 58,216,276 45,863,768 332,853,004 330,178,668 21 CITY OF LA QUINTA Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2005 Debt Service Funds Redevelopment Redevelopment Agency - Agency - Financing General PA No. 1 PA No. 2 Authority Revenues: Taxes $ 16,762,028 27,093,693 14,036,962 - Licenses and permits 3,226,167 - - - Charges for services 3,402,602 - - - Developer fees - Intergovernmental 7,552,035 - - - Investment income 3,238,808 255,628 174,272 58 Special assessments - - - - Rental income - - - 681,220 Loan repayments - - _ _ Miscellaneous 513,030 - - 3,481 Total revenues 34,694,670 27,349,321 14,211,234 684,759 Expenditures: Current: General government 3,765,511 - - - Public safety 12,364,583 - - - Community services 1,104,509 - - - Planning and development 862,890 365,810 180,374 5,231 Public works 4,794,685 - - - Capital projects - - - - Debt service: Principal - 3,121,114 195,000 315,000 Interest and fiscal charges - 8,967,948 1,782,844 3,356,269 Payment to bond escrow - - - - Payments under pass -through obligations - 14,421,097 11,335,224 - Total expenditures 22,892,178 26,875,969 13,493,442 3,676,500 Excess (deficiency) of revenues over (under) expenditures 11,802,492 473,352 717,792 (2,991,741) Other financing sources (uses): Issuance of tax allocation bonds - - - - Issuance of revenue bonds - - - - Bond premium and discount - - - - Payment to bond escrow - - - - Transfers in (note 21) 306,711 2,478,347 4,142,039 2,990,049 Transfers out (note 21) (2,887,472) (2,438,029) (994,948) - Proceeds from sale of capital assets - - - - Total other financing sources (uses) (2,580,761) 40,318 3,147,091 2,990,049 Net change in fund balances 9,221,731 513,670 3,864,883 (1,692) Fund balances (deficit) at beginning of year 54,705,236 4,088,071 (11,104,297) 5,052 Fund balances (deficit) at end of year $ 63,926,967 4,601,741 (7,239,414) 3,360 See accompanying notes to the basic financial statements. 24 Capital Projects Funds Redevelopment Other Capital Agency - 2004 Governmental Totals Improvement PA No. 1 Low/Mod Bond Funds 2005 2004 10,282,664 68,175,347 58,301,082 - 3,226,167 3,096,145 _ - 3,402,602 2,619,578 _ _ - 6,091,156 6,091,156 5,718,073 921,527 - - 1,769,314 10,242,876 11,858,627 - 767,036 1,191,332 588,157 6,215,291 3,735,984 _ - - 825,292 825,292 816,045 520,243 1,201,463 1,118,744 2,381,602 2,381,602 612,820 _ _ _ 12,392 528,903 746,719 921,527 767,036 1,191,332 22,470,820 102,290,699 88,623,817 _ - - 205,410 3,970,921 4,099,376 - 12,364,583 9,672,708 _ _ - 1,104,509 1,025,397 - 558,792 - 3,746,276 5,719,373 7,480,421 - - - 1,412,084 6,206,769 4,536,589 39,559,080 - - 453,307 40,012,387 43,331,919 162,546 - - - 3,793,660 3,610,538 85,908 - - 162,608 14,355,577 12,455,325 _ _ - 1,591,107 - _ - 25,756,321 21,448,147 39,807,534 558,792 - 51979,685 113,284,100 109,251,527 (38,886,007) 208,244 1,191,332 16,491,135 (10,993,401) (20,627,710) _ _ - 26,400,000 _ - - 90,000,000 _ _ - (1,506,396) _ _ - (19,955,000) 38,886,007 442,928 - 2,000 49,248,081 154,613,662 - (17,612,949) (753,613) (24,561,070) (49,248,081) (154,613,662) 8,566,295 8,566,295 - 38,886,007 (17,170,021) (753,613) (15,992,775) 8,566,295 94,938,604 - (16,961,777) 437,719 498,360 (2,427,106) 74,310,894 - 47,403,373 57,656,982 27,214,273 179,968,690 105,657,796 - 30,441,596 58,094,701 27,712,633 177,541,584 179,968,690 25 CITY OF LA QUINTA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended June 30, 2005 Net changes in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Capital assets donated to other funds Depreciation Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets The statement of net assets includes accrued interest on long term debt. To record as an expense the net change in compensated absences in the statement of activities. Revenues that are measurable but not available. Amounts are not recorded as revenue under the modified accrual basis of accounting. $ (2,427,106) 42,468,847 (41,459,643) (1,823,057) 3,793,660 (957,550) (17,475) (985,561) Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities. (92,852) Change in net assets of governmental activities $ (1,500,737) See accompanying notes to the basic financial statements. 26 CITY OF LA QUINTA Proprietary Funds Statement of Net Assets June 30, 2005 Assets Current assets: Cash and investments Accounts receivable Prepaid items Interest receivable Due from other governments Noncurrent assets: Deposits Inventory Capital assets, net Total assets Liabilities Current liabilities: Accounts payable Accrued salaries and benefits Deferred revenue Deposits payable Due to other funds (note 19) Advances from other funds (note 19) Noncurrent liabilities: Due within one year Due in more than one year Total liabilities Net Assets Invested in capital assets, Business Type Governmental Actvities Activities - Enterprise Fund Internal Totals Golf Course Service Funds 2005 2004 $ - 3,426,605 3,426,605 3,084,392 44,697 - 44,697 - - 49,086 49,086 - - 17,894 17,894 11,643 3,932 250,000 - 250,000 - 122,210 - 122,210 - 42,102,263 15,223,945 57,326,208 1,111,924 42,519,170 18,717,530 61,236,700 4,211,891 316,980 20,986 337,966 28,884 3,187 4,024 7,211 - 10,800 - 10,800 - 25,000 - 25,000 - 305,659 - 305,659 - 381,939 - 381,939 - 153,673 - 153,673 - 647,744 - 647,744 - 1,844,982 25,010 1,869,992 28,884 net of related debt 41,300,846 15,223,945 56,524,791 1,111,924 Unrestricted (626,658) 3,468,575 2,841,917 3,071,083 Total net assets $ 40,674,188 18,692,520 59,366,708 4,183,007 See accompanying notes to the basic financial statements. 27 CITY OF LA QUINTA Proprietary Funds Statement of Revenues, Expenses and Changes in Net Assets Year ended June 30, 2005 Operating revenues: Charges for services Total operating revenues Operating expenses: Salaries and benefits Fuel and oil Maintenance and parts Contract services Software and supplies Depreciation Other operating expenses Total operating expenses Operating income (loss) Non -operating revenues (expenses): Business Type Governmental Actvities Activities - Enterprise Fund Internal Totals Golf Course Service Funds 2005 2004 $ 1,091,836 981,180 2,073,016 694,960 1,091,836 981,180 2,073,016 694,960 22,679 71,734 94,413 51,862 - 42,473 42,473 33,390 - 116,565 116,565 138,406 1,637,376 109,956 1,747,332 124,037 - 89,564 89,564 120,098 210,677 624,570 835,247 305,834 6,559 93,993 100,552 - 1,877,291 1,148,855 3,026,146 773,627 (785,455) (167,675) (953,130) 78,667 Investment income - 66,322 66,322 58,469 Gain (loss) on sale of capital assets - 8,501 8,501 - Total non -operating revenues (expenses) - 74,823 74,823 58,469 Income (loss) before transfers and capital contributions (785,455) (92,852) (878,307) (20,198) Capital contributions 41,459,643 14,602,365 56,062,008 346,750 Changes in net assets 40,674,188 14,509,513 55,183,701 326,552 Net assets at beginning of year - 4,183,007 4,183,007 3,856,455 Net assets at end of year $ 40,674,188 18,692,520 59,366,708 4,183,007 See accompanying notes to the basic financial statements. 28 CITY OF LA QUINTA Proprietary Funds Statement of Cash Flows Year ended June 30, 2005 Business Type Actvities Enterprise Fund Cash flows from operating activities: Golf Course Cash received other customers S 1,082,939 Cash payments to suppliers for goods and services (1,699,165) Cash payments to employees for services (19,492) Net cash provided by (used for) operating activities (635,718) Cash flows from noncapital financing activities: Cash received (paid) on loans to other funds 687,598 Net cash provided by (used for) non -capital financing activities 687,598 Cash flows from capital and related activities: Insurance proceeds Cash received from the sale of capital assets Cash paid to acquire capital assets (853,297) Proceeds from capital leases 801,417 Net cash provided by (used for) capital and related activities (51,880) Cash flows from investing activities: Interest received on investments Net cash provided by (used for) investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Adjustments: (Increase) decrease in accounts receivable (Increase) decrease in deposits receivable (Increase) decrease in due from other governments (Increase) decrease in prepaid items (Increase) decrease in inventory (Increase) decrease in other assets Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and benefits Increase (decrease) in deferred revenue Increase (decrease) in deposits payable Net cash provided by (used for) operating activities Governmental Activities - Internal Total s Service Funds 2005 2004 981,180 2,064,119 706,028 (505,603) (2,204,768) (375,765) (67,710) (87,202) 51,862 407,867 (227,851) 278,401 687,598 687,598 18,294 18,294 350 350 - (145,333) (998,630) (189,793) - 801,417 (126,689) (178,569) (189,793) - 61,035 61,035 46,826 61,035 61,035 46,826 342,213 342,213 135,434 3,084,392 3,084,392 2,948,958 S 3,426,605 3,426,605 3,084,392 S (785,455) (167,675) (953,130) (78,667) 210,677 624,570 835,247 305,834 (44,697) - (44,697) - (250,000) - (250,000) - 3,932 3,932 11,068 (49,086) (49,086) - (122,210) (122,210) - - (19,100) (19,100) 47,995 316,980 15,226 332,206 (7,829) 3,187 - 3,187 - 10,800 10,800 25,000 - 25,000 - S (635,718) 407,867 (227,851) 278,401 Noncash capital, financing and investing activities: $ (65,496) (65,496) (511,491) Capital assets disposals Capital assets contributed by other funds 41,459,643 14,602,365 56,062,008 346,750 See accompanying notes to the basic financial statements. 29 CITY OF LA QUINTA Agency Funds Statement of Fiduciary Assets and Liabilities June 30, 2005 Assets Cash and investments (note 2) Taxes receivable Interest receivable Total assets Liabilities Due to bondholders Total liabilities 2005 2004 $ 1,221,946 1,982,134 25,829 - 6,166 6,973 $ 1,253,941 1,989,107 $ 1,253,941 1,989,107 $ 1,253,941 1,989,107 See accompanying notes to the basic financial statements. Of CITY OF LA QUINTA Notes to the Basic Financial Statements Year ended June 30, 2005 (1) Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta ("the City") was incorporated May 1, 1982 under the general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council - Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City: La Quinta Redevelopment Agency The La Quinta Redevelopment Agency (Agency) has established two redevelopment project areas pursuant to the State of California Health & Safety Code, Section 33000 entitled "Community Redevelopment Law". On November 29, 1983 and May 16, 1989, the City Council approved and adopted the Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These plans provide for the elimination of blight and deterioration, which was found to exist in the project areas. Although the Agency 31 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Separate financial statements of the Agency can be obtained at City Hall. City of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991 between the City of La Quinta and the La Quinta Redevelopment Agency. The purpose of the Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although the Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Authority. Separate financial statements of the Authority are not prepared. (b) Basis of Accounting and Measurement Focus The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. 32 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its discreetly presented component units. The City of La Quinta has no business -type activities or discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by function to which they were allocated). However, general governmental expenses have not been allocated as indirect expenses to the various functions of the City. Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government - wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. 33 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations. Governmental Funds In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a thirty day availability period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed non -exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntary non -exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. 34 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) 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 sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. 35 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 11 Summary of Significant Accountiniz Policies. (Continued Pronrietary Funds The City's internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. Amounts paid to acquire capital assets are capitalized as assets in the internal service fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the internal service fund financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the internal service fund are reported as a reduction of the related liability, rather than as an expenditure. Fiduciary Funds The City's fiduciary funds are agency funds. Agency funds are custodial in nature. Assets equal liabilities. Agency funds use the accrual basis of accounting. (c) Major Funds, Internal Service Funds and Fiduciary Fund Types The City's major governmental funds are as follows: General Fund — The primary fund of the City is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, Building and Safety, and Community Services. Redevelopment Agency Debt Service — Project Area No. 1 Fund — This debt service fund is used to account for the accumulation of resources for the payment of debt service for bond principal and interest and trustee fees for Project Area No. 1. Redevelopment Agency Debt Service — Project Area No. 2 Fund — This debt service fund is used to account for the accumulation of resources for the payment of debt service for bond principal and interest and trustee fees for Project Area No. 2. 36 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) Financing Authority Debt Service Fund — To account for the Public Financing Authority bond proceeds that will be used for specific projects and programs of the City. Capital Improvement Fund — This capital projects fund is used to account for the planning, design and construction of various capital projects throughout the City of La Quinta and the Redevelopment Agency. Redevelopment Agency Coital Projects — Project Area No. 1 Fund — This fund is used to account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition within the project area. 2004 Low/Moderate Bond Fund — To account for the 2004 revenue bond proceeds that will be used to finance projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. I and Project Area No. 2. The City's major proprietary funds are as follows: Golf Course — To account for the activities of the SilverRock Golf Resort. Other fund types of the City are as follows: Internal Service Funds: Equipment Replacement Fund — This fund accounts for equipment and vehicle maintenance and replacement services provided to other departments on a cost - reimbursement basis. Information Technology Fund — This fund is used to account for the acquisition of computer equipment, maintenance, and services to support information systems within the City. Costs are reimbursed by the benefiting departments. Park Equipment and Facilities Fund — This fund is used to account for the purchase and replacement of City owned park facility infrastructure. Costs are reimbursed by the benefiting departments. Agency Funds — These funds account for assets held by the City as an agency for assessment district bondholders and for Arts in Public Places donations. 37 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (d) Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair market value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. (e) Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short- term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of La Quinta. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the internal service fund is considered cash and cash equivalents. (f) Capital Assets Inventory is valued at cost using the first in/first out (FIFO) method. (f) Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more. 38 CITY OF LA QUINTA 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. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government —wide financial statements and in the fund financial statements of the internal service funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes fixed asset useful lives: Buildings and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years (g) Employee Leave Benefits Sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 and 40 days, respectively. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage increases by 25% for each five-year period until the employee is entitled to 75% of the value of his unused sick leave. This will occur upon the completion of ten years of continuous employment. (h) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) to its employees. (1) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. 39 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) 0) Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. (2) Cash and Investments Cash and investments as of June 30, 2005 are classified in the accompanying financial statements as follows: Statement of net assets: Cash and investments $ 97,186,820 Cash with fiscal agent 85,975,369 Statement of Fiduciary Assets and Liabilities: Cash and investments 1,221,946 Total cash and investments $184,384,135 Cash and investments as of June 30, 2005 consist of the following: Cash on hand $ 1,000 Deposits with financial institutions (2,934,840) Investments 187,317,975 Total cash and investments $184,384,135 Investments Authorized by the California Government Code and the Entity's Investment Policy The table below identifies the investment types that are authorized for the Entity by the California Government Code and the Entity's investment policy. The table also identifies certain provisions of the California Government Code (or the Entity'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 Entity, rather than the general provisions of the California Government Code or the Entity's investment policy. 40 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (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 No 5 years None None U.S. Treasury Obligations Yes 5 years None None U.S. Agency Securities Yes 5 years None $10 million Banker's Acceptances No 180 days 40% 30% Yes 10% or Commercial Paper 270 days 25% $3 million Negotiable Certificates of Deposit No 5 years 30% None Repurchase Agreements No 1 year None None 20% of Reverse Repurchase Agreements No 92 days base value None Medium -Term Notes Yes 5 years 30% $3 million Mutual Funds No N/A 20% 10% Money Market Mutual Funds Yes N/A 20% 10% Mortgage Pass -Through Securities No 5 years 20% None County Pooled Investment Funds No N/A None None Local Agency Investment Fund Yes N/A 25% None (LAIF) JPA Pools (other investment pools) No N/A None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. Investments Authorized by Debt Agreements 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 Entity'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. 41 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Maximum Maximum Authorized Maximum Percentage Investment Investment Type 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 Entity 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 Entity'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 Entity's investments by maturity: Remaining Maturity (in Months) 3 Months 4 to 6 7 to 12 12 to 24 Investment Tyne Or Less Months Months Months U.S. Treasury notes $ 32,947,558 5,001,854 17,979,929 9,965,775 - Federal agency securities 28,531,600 2,456,870 6,525,641 14,626,399 4,922,690 State investment pool 39,863,448 39,863,448 - - - Held by bond trustee: Money market funds 3,556,258 3,556,258 - - - U.S. Treasury bills 82,419,111 52,680,607 29,738,504 - - Total $187.317.975 103.559.037 54,244,0744,5� 4,922,690 42 CITY OF LA QUINTA 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 Entity's investment policy, or debt agreements, and the actual rating as of year end for each investment type. Investment Type U.S. Treasury notes Federal agency securities State investment pool Held by bond trustee: Money market funds U.S. Treasury bills Total Minimum Exempt Legal From Rating Disclosure $ 32,947,558 N/A 32,947,558 28,531,600 N/A - 39,863,448 N/A - 3,556,258 A - 82,419,111 N/A 82,419,111 Rating as of Year End Not AAA Aa Rated 24,077,976 - 4,453,624 - 39,863,448 - 3,556,258 - $187 317 975 115 366.669 24 077 3 556.258 44�317 072 Concentration of Credit Risk The investment policy of the Entity contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code, except for U.S. Agency Securities (limited to a face value of $10 million) and Commercial Paper and Medium -Term Notes (limited to a face value of $3 million). Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total Entity investments are as 4.-11 nw Issuer Federal Home Loan Mortgage Corp Investment Type Federal agency security Carrying Amount $10,041,337 Face Value $9,956,870 43 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (2) Cash and Investments. (Continued) 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 Entity'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 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 City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Investment in State Investment Pool The Entity 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 Entity's investment in this pool is reported in the accompanying financial statements at amounts based upon the Entity's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 44 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (3) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within sixty days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary source of revenue comes from property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other di stricts. 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. 45 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (4) Notes Receivable In September 1994, the Redevelopment Agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15, 2029. In December 2000, the Redevelopment 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 reported on the statement of net assets In June 2004, the Redevelopment Agency entered into an agreement to borrow $90,000,000 from the Financing Authority Debt Service Fund to provide for the advance refunding of the Agency's Redevelopment Project Areas No. 1 and 2, 1995 Housing Tax Allocation Bonds and to finance projects benefiting low and moderate income housing within the project areas. The funding was provided through the issuance of the 2004 Series A Local Agency Revenue Bonds issued by the Financing Authority. The note accrues interest between 3% and 5.25% per annum, payable semi-annually. Principal payments ranging from $735,000 to $5,660,000 are payable annually through September 2035. Total notes receivable reported in the Governmental Funds — Balance Sheet Outstanding Balance at June 30, 2005 $ 3,275,614 9,500,000 82,484 12,858,098 46 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (5) Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2005 is as follows: Balance at Balance at June 30, 2004 Additions Deletions June 30, 2005 Buildings and improvements $ 24,677,430 15,357,963 (11,609,027) 28,426,366 Equipment and furniture 1,583,727 114,965 (27,995) 1,670,697 Vehicles 1,224,147 73,399 (205,634) 1,091,912 Infrastructure 96,678,847 2,581,278 - 99,260,125 Total cost of depreciable assets 124,164,151 18,127,605 (11,842,656) 130,449,100 Less accumulated depreciation: Buildings and improvements Equipment and furniture Vehicles Infrastructure Total accumulated depreciation Net depreciable assets Capital assets not depreciated: Land Right of way Construction in progress Capital assets, net 6,057,086 2,007,875 942,823 184,717 758,280 77,673 53,438,823 2,631,200 (1,169,786) 6,895,175 (14,617) 1,112,923 (199,226) 636,727 56,070,023 61,197,012 4,901,465 (1,383,629) 64,714,848 62,967,139 13,226,140 (10,459,027) 65,734,252 73,505,659 9,491,384 (25,269,610) 57,727,433 234,280,023 12,019,371 - 246,299,394 27,932,823 39,222,431 (39,361,141) 27,794,113 $398,685,644 73,959,326 (75,089,778) 397,555,192 47 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (5) Capital Assets, (Continued) Capital asset activity for business -type activities for the year ended June 30, 2005 is as follows: Balance at Balance at June 30, 2004 Additions Deletions June 30, 2005 Buildings and improvements S - 6,236,075 - 6,236,075 Equipment and furniture - 1,058,737 - 1,058,737 Vehicles - 20,348 - 20,348 Software - 20,255 - 20,255 Total cost of depreciable assets - 7,335,415 - 7,335,415 Less accumulated depreciation: Buildings and improvements - 110,409 - 110,409 Equipment and furniture - 96,208 - 96,208 Vehicles - 2,035 - 2,035 Infrastructure - 2,025 - 2,025 Total accumulated depreciation - 210,677 - 210,677 Net depreciable assets - 7,124,738 - 7,124,738 Capital assets not depreciated: Land - 34,977,525 - 34,977,525 Capital assets, net 42.102.263 - 42,102,263 48 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (5) Capital Assets (Continued) Depreciation expense was charged in the following functions in the Statement of Activities: Governmental Activities General government $ 110,156 Public safety 483,689 Community services 1,343,072 Planning and development 27,672 Public works 2,936,876 Total Governmental Activities 4 901 465 Business Type Activities Golf Course $210,677 (6) Changes in Long -Term Liabilities — Governmental Activities Changes in governmental long-term liabilities for the year ended June 30, 2005 were as follows: Amounts Balance at Balance at due within June 30, 2004 Additions Deletions June 30, 2005 one year City: Compensated absences payable Due to the Coachella Valley Association of Governments Developer Agreement Payable Redevelopment Agency: RDA Project Area No. 1: Tax allocation bonds Pass -through agreements payable: Coachella Valley Unified School District RDA Project Area No. 2: Tax allocation bonds Due to County of Riverside Financing Authority: Revenue bonds Total S 531,553 441,868 (424,393) 428,311 - (50,000) 1,010,688 (112,547) 549,028 494,125 378,311 50,000 898,141 122,111 142,507,628 (2,243,969) 140,263,659 2,348,969 6,653,377 (726,114) 5,927,263 740,636 6,325,000 (95,000) 6,230,000 100,000 2,050,000 (100,000) 1,950,000 100,000 94,814,343 (292,285) 94,522,058 994,209 K54,3 20 900 441 8 4( •044.308) 25VI —60 4 950 0 0 49 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (7) Due to the Coachella Valley Association of Governments The City of La Quinta entered into an Interchange Reimbursement Agreement with the Coachella Valley Association of Governments (CVAG) to finance capital improvements at the Washington Street I-10 interchange. The City will reimburse CVAG $828,311 over a period of seventeen years beginning July 31, 1996. The annual payments to CVAG range from $28,311 to $50,000. At June 30, 2005, the balance is $378,311. The minimum annual requirements to amortize payable to Coachella Valley Association of Governments as of June 30, 2004 are as follows: June 30 Principal 2006 $ 50,000 2007 50,000 2008 50,000 2009 50,000 2010 50,000 2011 50,000 2012 50,000 2013 28,311 3 8 311 (8) Tax Allocation Bonds As of June 30, 2005, the following issuances of Tax Allocation Bonds were outstanding: Series 1994 Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on May 5, 1994, in the amount of $26,665,000 to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 1. Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2005 is $15,655,000. 50 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 81 Tax Allocation Bonds (Continued 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. Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter, through September 1, 2028, at a price equal to the principal amount thereof plus accrued interest. There are certain limitations regarding the issuance of parity debt as further described in the official statement. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2005 is $15,760,000. Series 1998 Project Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. Interest rates on the bonds range from 3.75% to 5.28% and are payable semi-annually on March I 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. 51 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) Tax Allocation Bonds, Series 2001 — Project Area No. 1 On August 15, 2001, the Agency issued tax allocation bonds in the amount of $48,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and issuance costs of $1,517,325. The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature on September 1, 2021 and $30,720,000 of term bonds that accrue interest at 5.18% and mature on September 1, 2031. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 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. The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. Term bonds accrue interest at 5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to obtain a surety 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 of unamortized discount and issuance costs of $1,449,086). Tax Allocation Bonds, Series 2003 - Project 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 and issuance costs of $629,191. 52 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds (Continued) Tax Allocation Bonds, Series 2003 - Project Area No. 1, (Continued Interest is payable semi-annually on March 1 and September I 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). 53 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) The minimum annual requirement (including sinking fund requirements) to amortize 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 2007 2,640,000 7,658,900 105,000 314,785 2008 2,795,000 7,500,554 110,000 310,135 2009 2,960,000 7,330,189 115,000 305,184 2010 3,135,000 7,144,063 120,000 299,550 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 5,020,000 4,733,125 205,000 210,131 2022 5,285,000 4,462,141 215,000 199,106 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 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 $ 144,285,000 132,509,221 6,230,000 5,828,436 54 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 91 Revenue Bonds 1996 Lease Revenue Refunding Bonds On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for construction of remaining improvements to the La Quinta Civic Center site. The bonds consist of $3,630,000 of serial bonds and $5,160,000 of term bonds. The serial bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts mature between October 1, 1997 to October 1, 2008 in amounts ranging from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and mature on October 1, 2018. A surety agreement has been purchased to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The amount of principal outstanding on the 1996 Lease Revenue Refunding Bonds at June 30, 2005 is $6,575,000. 2004 Series A Local Agency Revenue Bonds 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. I and the 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 2004 local agency revenue bonds were issued with issuance costs of $2,600,229 and a premium of $476,496. Interest is payable semi-annually on March 1 and September 1 of each year, commencing September 1, 2005. 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 I 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 $87,947,058 ($90,000,000 net of unamortized discount and issuance costs of $2,052,942). 55 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (9) Revenue Bonds, (Continued) The minimum annual requirements (including sinking fund requirements) to amortize revenue bonds as of June 30, 2005 are as follows: June 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 1996 Lease Revenue 2004 Series A Revenue Bonds Principal Interest Principal Interest 330,000 350,575 735,000 2,990,049 345,000 333,865 1,520,000 4,436,981 360,000 315,880 1,570,000 4,403,156 380,000 296,450 1,615,000 4,356,806 400,000 275,280 1,670,000 4,304,994 420,000 252,525 1,740,000 4,243,332 445,000 228,521 1,805,000 4,175,132 470,000 203,130 1,890,000 4,099,719 495,000 176,351 1,975,000 4,016,581 525,000 148,046 2,075,000 3,924,681 555,000 116,076 2,175,000 3,823,431 585,000 86,441 2,290,000 3,714,462 615,000 53,141 2,410,000 3,597,256 650,000 18,038 2,535,000 3,473,881 - - 2,670,000 3,344,075 - - 2,810,000 3,207,444 - - 2,960,000 3,063,594 - - 3,115,000 2,912,132 - - 3,275,000 2,752,663 - - 3,450,000 2,584,925 - - 3,630,000 2,408,394 - - 3,810,000 2,227,082 - - 4,000,000 2,041,082 - - 4,200,000 1,845,832 - - 4,410,000 1,640,832 - - 4,635,000 1,425,582 - - 4,870,000 1,196,560 - - 5,120,000 952,994 - - 5,380,000 697,000 - - 5,660,000 572,969 111 2,856,319 90,000,000 :: 56 CITY OF LA QUINTA 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 requirements to amortize amounts due to the County of Riverside as of June 30, 2005 are as follows: June 30 Principal 2006 $ 100,000 2007 100,000 2008 150,000 2009 200,000 2010 200,000 2011 200,000 2012 250,000 2013 250,000 2014 250,000 2015 250,000 1 950 000 57 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) 01) Pass -through Agreements Payable Coachella Valley Unified School District An agreement was entered into in 1991 between the Agency, the City of La Quinta and the Coachella Valley Unified School District (District), which provides for the payment to the District a portion of tax increment revenue associated with properties within District confines. Such payments are subordinate to other indebtedness of the Agency incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012, in amounts ranging from $421,168 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 2005 totaled $5,927,265. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school busses, and expansion or rehabilitation of current facilities. 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 $5,927,263 (12) Developer Agreement Payable In December 1998, the City entered into a tax sharing agreement with Stamko Development Co. in relation to the development of an auto mall located within the City. For a period of ten years, the agreement requires the City to make quarterly payments to the developer in the amount of 33% of the sales and use tax revenues generated by the site up to a maximum amount of $122,250 in any twelve month period. Additionally, if the sales and use tax revenues generated exceed $530,000, adjusted annually by the CPI index, the City is required to pay $76,204 for that year for a maximum of ten years, based 58 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (12) Developer Agreement Payable (Continued) upon a $500,000 note at an interest rate of 8.5%. For the year ended June 30, 2005, the City paid the developer $122,250 in sales tax reimbursement and $76,204 since the sales tax generated exceeded the required amount. The balance at June 30, 2005 is $898,141. The minimum annual requirements to amortize the developer agreement payable as of June 30, 2005 are as follows: June 30 Principal Interest Total 2006 $ 122,111 76,343 198,454 2007 132,491 65,963 198,454 2008 143,753 54,701 198,454 2009 155,972 42,482 198,454 2010 169,230 29,224 198,454 2011 174,584 23,870 198,454 898 141 292,5 83 1,190,724 (13) Changes in Long -Term Liabilities — Business -type Activities Changes in business -type long-term liabilities for the year ended June 30, 2005 were as follows: Amounts Balance at Balance at due within June 30, 2004 Additions Deletions June 30, 2005 one year Golf Course: Capital leases payable _ 880,286 Q8 869) 801,417 153.673 The City of La Quinta entered into several capital lease agreements for the operation of SilverRock Resort. The City financed the acquisition of a point -of -sale system, maintenance equipment and golf carts. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The assets acquired during the fiscal year under these lease agreements are recorded at their acquisition cost of $880,286. W. CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (13) Changes in Long -Term Liabilities — Business -type Activities, (Continued) The following schedule summarizes the debt to maturity payments for capital leases: Year ending June 30: Business -type Activities Principal Interest 2006 $153,673 33,365 2007 171,351 26,197 2008 179,147 18,401 2009 187,637 9,912 2010 109,609 1,573 Total 8 1 41 (14) Debt Without Governmental Commitment The City of La Quinta sold Improvement Bonds issued pursuant to the California State Improvement Act of 1915. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benefited by the projects. The Bonds are neither general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The City is not liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and forwarding the collections to bondholders. The Bonds do not constitute an obligation of the City; therefore, they are not included in the long-term liability in the accompanying financial statements. The following is a summary of Improvement Bonds outstanding at June 30, 2005: Proceeds Maturity Date Assessment District No. 92-1 1,880,891 9/2/08 Assessment District No. 97-1 705,262 9/2/18 Assessment District No. 2001-1 2,285,000 9/2/15 Amount Outstanding Interest Rate at June 30, 2005 5.00%-5.40% 480,000 4.10%-5.20% 550,000 5.00%-6.60% 1,690,000 60 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (15) Defined Benefit Pension Plan Plan Description The City of La Quinta contributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of PERS' annual financial report may be obtained from its executive office at 400 "P" Street, Sacramento, California 95814. Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. Benefit provisions and all other requirements are established by state statute and town contract with employee bargaining groups. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2004 to June 30, 2005 has been determined by an actuarial valuation of the plan as of June 30, 2002. The contribution rate indicated for the period is 0.000% of payroll for the miscellaneous plan. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2005, this contribution rate would be multiplied by the payroll of covered employees that was actually paid during the period July 1, 2004 to June 30, 2005. 61 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (15) Defined Benefit Pension Plan, (Continued) A summary of principle assumptions and methods used to determine the ARC is shown below. Valuation Date Actuarial Cost Method Amortization Method Average Remaining Period Asset Valuation Method Actuarial Assumptions Investment Rate of Return Projected Salary Increases Inflation Payroll Growth Individual Salary Growth June 30, 2002 Entry Age Actuarial Cost Method Level Percent of Payroll 22 Years as of the Valuation Date 3 Year Smoothed Market 8.25% (net of administrative expenses) 3.75% to 14.20% depending on Age, Service, and type of employment 3.50% 3.75% A merit scale varying by duration of employment coupled with an assumed annual inflation component of 3.5% and an annual production growth of 0.25%. Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into CalPERS. Subsequent plan amendments are amortized as a level % of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a rolling period, which results in an amortization of 10% of unamortized gains and losses each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the amortization period may not be lower than the payment calculated over a 30 year amortization period. For the miscellaneous plan, the City was overfunded for the year ended June 30, 2003. Amortization periods are not determined for overfunded plans. The Schedule of Funding Progress below shows the recent history of the actuarial value of assets, actuarial accrued liability, their relationship, and the relationship of the unfunded accrued liability to payroll. Funding Policy Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate. For the year ended June 30, 2004, the rate was 10.412% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. 62 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (15) Defined Benefit Pension Plan (Continued) Annual Pension Cost For 2005, the City's annual pension cost (employer contribution) in the amount of $336,348 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2002, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 8.25% investment rate of return (net of administrative expenses), (b) projected annual salary increases that vary by duration of service, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of 4.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a four-year period (smoothed market value): Any unfunded actuarial accrued liability is amortized as a level percentage of projected payroll on a closed basis. PERS combines the prior service unfunded liability and the current service unfunded liability into a single initial unfunded liability. The single funding horizon for the unfunded liability is June 30, 2011. Miscellaneous Employees Three -Year Trend Information Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obligation 6/30/03 0 100% -0- 6/30/04 0 100% -0- 6/30/05 336,348 100% -0- Required Supplementary Information ($ amount in thousands) Entry Age Normal Actuarial Unfunded Annual UAAL Accrued Value Liability/ Covered As a % of Valuation Date Liability of Assets (Excess Assets) Funded Status Pafroll Payroll 06/30/01 $6,314,188 8,806,753 (2,492,565) 139.5% 3,349,776 (74.4%) 06/30/02 8,374,878 8,708,115 (333,237) 104.0% 3,783,079 (8.8%) 06/30/03 10,343,433 9,225,182 1,118,251 89.2% 4,176,046 26.8% Information for the June 30, 2004 valuation date was not available for inclusion in the financial statements. 63 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (16) Claims Payable/Self Insurance The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 106 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500, et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self -insured losses, to purchase excess insurance or reinsurance, and to arrange for group - purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has a representative on the Board of Directors. The Board operates through a 9-member Executive Committee. General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the city; costs from $30,001 to $750,000 are pooled based on a members share of costs under $30,000; costs from $750,001 to $15,000,000 are pooled based on payroll. Costs to covered claims above $15,000,000 are currently paid by reinsurance. The protection for the City is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers Compensation The City also participates in the workers compensation pool administered by the Authority. Members retain the first $50,000 of each claim. Claims are pooled separately between public safety and non-public safety. Loss development reserves are allocated by pool and by loss layer ($0-$100,000 allocated by retained amount and $100,000 to $2,000,000 by payroll). Losses from $50,000 to $100,000 and the loss development reserve associated with losses up to $100,000 are pooled based on the member's share of losses under $50,000. Losses from $100,000 and $2,000,000 and the loss development reserves associated with losses from $100,000 to $2,000,000 are pooled based on payroll. Costs from $2,000,000 and $50,000,000 are transferred to an excess insurance policy. Costs in excess of $50,000,000 are pooled among the Members based on payroll. Administrative expenses are paid from the Authority's investment earnings. During the past three fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 64 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (17) Contingencies Various claims and suits have been filed against the City in the normal course of operations. Although the outcome of these lawsuits is not presently determinable, in the opinion of management, the resolution of these matters will not have a material adverse effect on the financial position of the City. (18) Educational Revenue Augmentation Fund (ERAF) Payment During fiscal year ended June 30, 2005, Chapter 1127 of the 2002 Statutes of the State of California require 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. (19) Interfund Receivables and Payables Current interfund receivables and payables balances at June 30, 2005 are as follows: Due from other fiords Due to other funds Amount General Fund Capital Projects Redevelopment Agency PA No. 1 fund $3,273,200 (A) 2004 Low/Mod Bond fund 121,575 (A) Other governmental funds 194,088 (B) Golf Course Fund 305,659 (B) Total 3 894 522 (A) Short term borrowing to cover June 2005 construction project expenditures. (B) Short term borrowing to cover temporary cash shortfalls. 65 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (19) Interfund Receivables and Payables, (Continued) Noncurrent interfund receivable and payable balances at June 30, 2005 are as follows: Advances to other funds Advances from other funds General Fund RDA Debt Service — PA No. 1 RDA Debt Service — PA No. 2 Golf Course Subtotal RDA Capital Projects — PA No. 1 Other governmental funds Other governmental funds Other governmental funds Total Amount $13,727,340 (C) 17,795,380 (D) 381,939 (E) 31,904,659 5,938,879 (F) 1,122,148 (G) $38.965.687 (C) As of June 30, 2005, the amount due to the General Fund From RDA Debt Service — PA No. 1 was $13,727,340. This consists of an outstanding advance of $6,977,481 loaned to the Redevelopment Agency with no required repayment date and accrues interest at 10% per annum. Also, in April 2003, the General Fund advanced $6,105,000 to the RDA Debt Service PA No. 1 to provide funding for capital projects within the project area. As of June 30, 2005, the outstanding advance amount is $6,749,859. The advance accrues interest at 7% per annum and is to be repaid by November 29, 2033. (D) As of June 30, 2005, the amount due to the General Fund From RDA Debt Service — PA No. 2 was $17,795,380. This consists of an outstanding advance of $11,589,380 loaned to the Redevelopment Agency with no required repayment date and accrues interest at 10% per annum. An outstanding advance of $6,206,000 was made to provide funding for purchase of land for affordable housing and commercial development. The advance accrues interest at 7% per annum and is to be repaid by the date of the sale of the commercial property or May 1, 2030, whichever comes first. (E) In August and September 2004, the General Fund advanced to the Golf Course fund $381,679. The advance accrues interest at 7% per annum and is to be repaid by the golf course out of future profits. 66 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (19) Interfund Receivables and Payables (Continued) (F) In January 2002, the Redevelopment Agency Capital Projects — PA No. l Fund advanced $2,448,263 to the Parks and Recreation Fund to provide funding for civic center campus improvements. The advance accrues interest at the earnings rate of the City's investment pool funds. Annual installments due July 31, 2002 and 2003 shall not be less than the amount of park facility developer impact fees collected by the City during the period to which a particular installment payment applies. In July 2002, an advance of $1,908,192 was made to provide funding for the development of the publicly owned improvements to the La Quinta Community Park. Annual payments will be determined by City Council. In April 2004, another advance of $2,498,530 was made to provide funding for the construction of the public library. Annual payments will be determined by City Council. The remaining balance of these advances at June 30, 2005 is $5,938,879. (G) In February 2003, the Redevelopment Agency Capital Projects — PA No. 2 Fund advanced $1,500,000 to the Fire Facility Fund to provide funding for the development of the City's north fire station. The advance accrues interest equal to the earning rate of the City's Investment Pool Funds and is to be repaid by the year 2039. As of June 30, 2005, the remaining balance of the advances at June 30, 2004 is $1,122,148. (20) Construction Commitments The following material construction commitments existed at June 30, 2005: Project Name Expenditures as of Remaining June 30, 2005 Commitments Silver Rock Resort $24,099,520 Phase 2 — Jefferson Street Improvements (Hwy. 111) 628,523 City Hall Expansion 135,607 Eisenhower Dr. Bridge 715,974 Highway 111 Adams to Jefferson 59,602 18,269,251 6,499,572 3,803,117 3,035,328 2,655,383 67 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (21) Interfund Transfers Interfund transfers were as follows for the year ended June 30, 2005: Transfer In Transfer Out Amount General Fund Other governmental funds $ 306,711 RDA Debt Service — PA No. 1 Fund Other governmental funds 2,478,347 (A) RDA Debt Service — PA No. 2 Fund Other governmental funds 4,142,039 (B) Financing Authority Debt Service Fund RDA Debt Service — PA No. 1 Fund 1,995,101 (F) Financing Authority Debt Service Fund RDA Debt Service — PA No. 2 Fund 994,948 Subtotal Financing Authority Debt Service Fund 2,990,049 Capital Improvement Fund General Fund 2,885,472 (C) Capital Improvement Fund 2004 Low/Moderate Bond Fund 753,613 Capital Improvement Fund RDA Capital Projects — PA No. 1 Fund 17,612,949 (D) Capital Improvement Fund Other governmental funds 17,633,973 (E) Subtotal Capital Improvement Fund 38,886,007 RDA Capital Projects — PA No. 1 Fund RDA Debt Service — PA No. 1 Fund 442,928 Other governmental fund General Fund 2,000 Total 49.248.081 68 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (21) Interfund Transfers (Continued) The following describes the major transfers in and transfers out included in the financial statements: Transfers to Major Funds (A) $1,995,101 was transferred from the Low/Moderate Housing Project Area No. 1 Fund to the RDA Debt Service Project Area No. I Fund to pay a portion of the 2004 Series A Local Agency Revenue Bond debt service. (B) $3,147,091 was transferred from the Low/Moderate Housing Project Area No. 2 Fund to the RDA Debt Service Project Area No. 2 Fund to as result of the sale of housing land to a developer. (C) $2,663,640 was transferred to the Capital Improvement Fund from the General Fund to fund the construction of the La Quinta Municipal Library. Other transfers totaled $221,832 at 6/30/05. (D) $16,313,666 was transferred to the Capital Improvement Fund from the RDA Capital Projects — PA No. 1 Fund to fund the construction of the SilverRock resort capital project. Other transfers totaled $1,299,283 at 6/30/05. (E) $5,783,409 and $1,512,445 was transferred to the Capital Improvement Fund from the RDA Capital Projects — PA No. 1 Taxable Fund and the RDA Capital Projects — PA No. 2 Fund, respectively, to fund the construction of the SilverRock resort capital project. $3,746,450 and $2,663,640 was transferred to the Capital Improvement Fund from the Library Developer Impact Fund and the General Fund, respectively, to fund the construction of the La Quinta Municipal Library. (F) $1,995,101 was transferred from the RDA Debt Service Project Area No. 1 Fund to the Financing Authority Debt Service Fund to pay a portion of the 2004 Series A Local Agency Revenue Bond debt service. 69 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (22) Fund Deficits The following fund had a deficit balance at June 30, 2005: Special Revenue Fund: Federal Assistance Debt Service Fund: Redevelopment Agency — PA No. 2 Capital Projects Fund: Parks and Recreation Library Development Fire Facility Redevelopment Agency — PA No. 2 $ 177,312 7,239,414 3,269,023 2,498,530 1,122,185 The deficit was created by outstanding advances from the General Fund which are intended to be paid back in the future with anticipated tax increment revenues. Parks and Recreation The deficit was created by outstanding advances from Capital Projects Funds — PA No. 1 and 2 to accelerate park projects. The advances are intended to be paid back in the future with future park developer impact fee collections. Library Development The deficit was created by transfers to the Capital Improvements Capital Projects Fund for the construction of the library. The cost for the current year exceeded the developer fees collected in this fund. Fire Facility The deficit was created by transfers to the Capital Improvements Capital Projects Fund for the construction of a fire station. The cost for the current year exceeded the developer fees collected in this fund. 70 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (23) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2005 exceeded the appropriations of the following funds/departments: Budget Actual Variance General Fund: City Manager $445,723 620,669 (174,946) Fiscal Services Public Safety Building 413,168 1,313,294 456,935 1,321,862 (43,767) (8,568) Public Works Administration Public Works Development and Traffic 82,694 1,142,966 169,924 1,288,794 (87,230) (145,828) Public Works Maintenance L and L 934,413 466,462 939,373 653,184 (4,960) (186,722) Capital Projects Administration Capital Projects Funds: Parks and Recreation - 81,740 (81,740) Civic Center 204,366 - 205,410 8,482 (1,044) (8,482) Library Fire Facility - 24,310 (24,310) Redevelopment Agency Project Area No. 1 503,706 558,792 (55,086) (24) Conduit Debt Financing 2002 Series B Multifamily Housing Revenue Bonds In April 2002, the La Quinta Redevelopment Agency issued $3,000,000 of 2002 Series B Multifamily Housing Revenue Bonds to provide financing for the acquisition, construction and equipping of a multifamily senior rental housing project known as Miraflores Apartments located in the City of La Quinta. The bonds mature on June 1, 2035 and bear interest at 5.5% per annum. Outstanding bonds at June 30, 2005 are $3,000,000. The bond is secured solely by the credit facility, Fannie Mae, and by a pledge of the trust estate comprised of bond proceeds and property. The bond is not an obligation of the issuer, but payable solely from the security. 71 CITY OF LA QUINTA Notes to the Basic Financial Statements (Continued) (25) Unreserved Fund Balances Unreserved fund balances at June 30, 2005 consisted of the following: Capital Debt Service Projects General RDA Financing Fund PA No. 2 Authority Designated for: Emergency reserve $15,067,577 Cash flows 2,608,786 Library 11,981 Capital improvements 589,875 Educational purposes 1,000,000 Economic development 467,072 Encumbrances/carryover appropriations 1,069,667 Operations/projects/ transfers 10,699,419 Other RDA 2004 Low/ Governmental PA No. 1 Mod Bond Funds Total - 15,067,577 - - 2,608,786 - - - 11,981 - - - 589,875 - - - - 1,000,000 - - 467,072 1,069,667 10,699,419 Undesignated - (7,239,414] 3,360 (3,307,053) (65,640) 24,333,650 13,724,903 Total unreserved fund balances (deficit) $31.514.377 (7.239.414) (3.307.0531 (65.6401 .333.650 4,22.2$. (26) Golf Course Management Agreement The City entered into an agreement with Landmark Golf Management LLC (operator) to manage the golf operations at the city -owned SilverRock Golf Course. The Agreement, entered into on April 6, 2004, sets forth a five year term commencing upon the completion of the golf course. On January 14, 2005, the golf course was deemed to be complete and management was turned over to the operator. The contract provides that the operator will manage the day to day operations, hire employees, provide golf pro shop and food services, manage all marketing and promotional activities, prepare the annual budget report for Council consideration, and manage accounting and payroll functions. In addition to the annual payment for management services, the City has advanced the operator $250,000 to pay for golf course expenses. Twice a month the operator submits a request for reimbursement to the City to replenish the City's advance. In addition, the agreement sets forth the establishment of a capital reserve fund of 2% of green fees. For the fiscal year ending June 30, 2005 the Golf Course had an operating loss of $785,455. r#A UIRED SUPPLEMENTARY INFORMATION 73 Revenues: Taxes Licenses and permits Charges for services Intergovernmental Investment income Miscellaneous Total revenues Expenditures: General government: Legislative City manager Economic development Personnel Fiscal services Central services City clerk Total general government Public safety: Police Building and safety administrative Code compliance Animal control Building Emergency services Fire Civic center building Total public safety Community services: Senior center Parks and recreation administration Parks and recreation programs Total community services CITY OF LA QUINTA General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (Negative) Actual $ 12,751,000 12,751,000 16,762,028 4,011,028 13,184,050 966,400 971,400 3,226,167 2,254,767 3,096,145 1,478,800 1,474,000 3,402,602 1,928,602 2,619,578 6,344,340 6,396,441 7,552,035 1,155,594 4,895,986 2,265,300 1,859,300 3,238,808 1,379,508 2,335,154 16,500 333,111 513,030 179,919 109,388 23,822,340 23,785,252 34,694,670 10,909,418 26,240,301 761,385 753,885 537,891 215,994 640,438 623,222 445,723 620,669 (174,946) 562,001 - 743,550 840,600 795,395 45,205 720,748 660,679 672,669 382,352 290,317 584,127 531,024 413,168 456,936 (43,768) 440,735 543,607 659,448 556,435 103,013 613,912 434,611 434,611 415,833 18,778 330,259 4,298,078 4,220,104 3,765,511 454,593 3,892,220 6,636,704 6,813,954 6,136,323 677,631 5,285,180 290,317 194,019 169,151 24,868 203,616 658,084 658,084 497,708 160,376 520,714 293,479 302,229 208,348 93,881 188,718 794,000 1,313,294 1,321,862 (8,568) 1,131,823 45,193 45,193 28,815 16,378 26,316 3,782,040 3,881,825 3,542,046 339,779 1,831,358 485,258 485,258 460,330 24,928 484,455 12,985,075 13,693,856 12,364,583 1,329,273 9,672,180 359,644 376,294 307,579 68,715 312,606 692,003 778,010 648,149 129,861 577,506 144,203 185,003 148,781 36,222 135,285 1,195,850 1,339,307 1,104,509 234,798 1,025,397 76 (Continued) CITY OF LA QUINTA General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Continued) Variance with Prior Budget Final Budget Year Original Final Actual Positive (Negative) Actual Planning and development: Community development administration 465.286 465,286 352.158 113.128 350,514 Current planning 507.424 649,585 510,732 138,853 399,930 Total planning and development 972,710 1,114,871 862,890 251,981 750,444 Public works: Public works administration 194,230 82,694 169.924 (87,230) 91,738 Development and traffic 851,645 1,142,966 1,288,794 (145,828) 1,040022 Maintenance/operations - St. 59E269 1,566.269 888,104 678,165 501.650 Maintenance/operations - L & L 468,662 934,413 939.373 (4.96(1) 898,933 Maintenance/operations - Park 837.090 914,140 855.306 58,834 - Capital projects administration 520.565 466,462 653,184 (186,722) _565,551 Total public works 3.463,461 5,106,944 4,794,685 312,259 3.103.794 Total expenditures 21915,174 25,475,082 22.892.178 1582,904 18.444,035 Excess (deficiency) of revenues over (under) expenditures 907,166 (1,689,830) 11,802,492 13,492,322 7,796,266 Other financing sources (uses): Transfers in 30,000 522,752 306,711 (216,041) 183289 Transfers out (200,454) (3,989,967) (2,887,472) 1,101495 (959,002) Total other financing sources (uses) (I70A54) (3,467215) (2,580,761) 886,454 (775,713) Net change in fund balance 736,712 (5,157.045) 9,221,731 14,378,776 7.020,553 Fund balance atbegiruring ofVear 54,705236 54.705,236 54,705.236 - 47,684,683 Fund balance at end of year $ 55,441,948 49,548,191 63,926,967 14,378,776 54.705,236 77 (This page intentionally left blank) 78 SUPPLEMENTARY SCHEDULES 79 Assets Cash and investments Cash with fiscal agent Accounts receivable Interest receivable Notes receivable Due from other govenmients Advances to other finds Deposits Total assets Liabilities and Fund Balances Liabilities: Accounts payable Deferred revenue Deposits payable Due to other finds Advances from other fiuids Total liabilities Fund balances: Reserved for: Notes receivable Advances to other finds Deposits Unreserved: Designated for capital projects Undesignated Total fund balances Total liabilities and fund balances CITY OF LA QUINTA Non -Major Governmental Funds Combinmg Balance Sheet June 30, 2005 Special Capital Revenue Projects Totals Funds Funds 2005 2004 $ 19,227,428 12,171,565 31,398,993 23,143,081 - 5,096 5,096 8,545,446 82,749 60,900 143,649 146,746 91,485 63,616 155101 82,045 12,858,098 - 12,858:098 12,741,527 179,573 - 179,573 141,715 - 1,122,148 1,122,148 1,260,695 1,110 - 1,110 - $ 32,440,443 13,423,325 45,863,768 46,061,255 $ 101,126 8,170 109,296 62,940 10,740,225 - 10,740,225 10,618,102 18,664 27,835 46,499 46,499 194,051 37 194,098 2,793,293 - 7,061,027 7,061,027 5,336,158 11,054,066 7,097,069 18,151,135 18,846,982 2,117,873 - 2,117,873 2,123,425 - 1,122,148 1,122,148 - 1,110 - 1,110 - - 13,215,994 13,215,994 20,926,930 19,267,394 (8,011,886) 11,255,508 4,163,918 21,386,377 6,326,256 27,712,633 27,214,273 $ 32,440,443 13,423,325 45,863,768 46,061,255 80 CITY OF LA QUINTA Non -Major Goveruniental Funds Combining Statement or Revenues_ Expenditures and Changes in Fund Balances Year ended June 30, 2005 Special Capital Revenue Projects Totals Funds Funds 2005 2004 Revenues: Taxes $ 10,282,664 - 10,282.664 9,023.407 Developer fees 1,921,978 4,169,178 6,091,156 5,718,073 Intergovernmental 1,578,451 190,863 1,769,314 1,031.259 Investirnent income 270,211 317.946 588,157 484,780 Special assessments 825,292 - 825,292 816.045 Rental income 520.243 - 520,243 431.178 Loan repavments 2,381,602 - 2,381,602 612,820 Miscellaneous 12.392 - 12,392 474,645 Total revenues 17,792,833 4,677,987 22.470,820 18.592207 Expenditures: Current: General government Public Safety Planning and development Public works Capital projects Debt service: Principal interest and fiscal charges Total expenditures Excess (deficienc.\) of revenues over (under) expenditures Other financing sources (uses): issuance of tax allocation bonds Issuance of revenue bonds Transfers in Transfers out Proceeds from sale of capital assets Total other financing sources (uses) Net change in fluid balances Fund balances at begimting of year Fund balances at end ofvear 205,410 3.553,188 193,088 1,412.084 - 60,429 392,878 205,410 207,156 - 528 3,746276 4.345,461 1,412,084 1,432,795 453.307 124,821 - - 113,662 - 162,608 162.608 3,025,628 5,025,701 953,984 51979,685 9,250,051 12.767,132 3.724,003 16,491,135 9,342,156 - 26,400,000 - - 90.000.000 2,000 - 2,000 5,802,000 (11,358,934) (13,202,136) (24.561,070) (125,121,381) 8.566.295 - 8,566295 - (2,790.639) (13.202.13,6) (15,992,775) (2,919,381) 9.976,493 (9,478,133) 498,360 6,422,775 11,409,884 $ 21,386,377 81 15.804.389 27,214.273 20,791,498 6,326.256 27 712,633 27,214,273 NON -MAJOR SPECIAL REVENUE FUNDS Special revenue fiords are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures that are legally required to be accounted for in a separate fund. The City of La Quinta has the following Special Revenue Funds: State Gas Tax Fund - To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street -related purposes only. Federal Assistance Fund - To account for revenues from the Community Development Block Grants received from the Federal Goverrurient and the expenditures of those resources. State Law Enforcement Block Grant (SLEBG) Fund - To account for state funded "Citizens for Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti -gang community crime prevention. Indian Gaming Fund - To account for contributions for public safety activities to reduce crime and increase public safety. Lighting and Landscape Special Assessment District 89-1 Fund - To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. Riverside County Transportation Commission (ROTC) Fund - To account for grant funds related to transportation projects. Quimby Fund - To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital protects fund. La Quinta Public Safety Officer Fund - To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of approved artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites. Urban Forestry Fund - To account for grant revenues received for landscape improvements from the State of California. South Coast Air Quality Fund - To account for contributions from the South Coast Air Quality Management District. Use is limited to reduction and control of airborne pollutants. Congestion Management Air Quality (CMAQ) Fund - To account for grant funds related to improving air quality. Redevelopment Agency Low and Moderate Bond Fund 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. 83 CITY OF LA QUINTA Non -Major Special Revenue Funds Combining Balance Sheet ,Tune 30, 2005 Lighting State Federal Indian and Gas Tax Assistance SLEBG Gaining Landscape RCTC Quimby Assets Cash and investments $ 220,344 - 584 142,094 - - 1,984,780 Accounts receivable - - _ _ _ _ _ Interest receivable 1,129 - 4 846 - 9,121 Notes receivable - - - _ _ Due from other govenunents - 16,739 - - 35,408 - - Deposits - _ _ _ _ _ _ Total assets $ 221,473 16,739 588 142,940 35,408 - 1,993,901 Liabilities and Fund Balances Liabilities: Accounts payable Deferred revenue Deposits payable Due to other funds - 194,051 Total liabilities - 194,051 Fund balances: Reserved for: Notes receivable Deposits - - - - _ _ _ Unreserved 221,473 (177,312) 588 142,940 35,408 - 1,993,901 Total fluid balances 221,473 (177,312) 588 142,940 35,408 - 1,993,901 Total liabilities and fund balances $ 221,473 16,739 588 142,940 35,408 - 1,993,901 84 LoNN/ I,(m/ Moderate Moderate Arts in Income Income Public Public I Trban South Co�lst Housing- Nousinl- Totals Safct% Places Porestry Air Quality CMAQ PA No I PA No. 2 2005 2004 lU_532 903.406 - 148,293 6.758,136 9.059.259 19,227,428 9,128,781 - 74,249 8,500 82.749 83,042 55 4.438 720 30,346 44,826 913485 31,377 _ - - 3,358,098 9,500,000 12,858,098 12,741,527 84.625 42,801 179,.573 14 L715 1,110 - 1,110 - 10,587 907,844 149,013 - 10,306,564 18,655,386 32,440,443 22,129,042 - 12,500 - - 1 LI20 77,506 101,126 46,040 - 1240225 9,500,000 10,740,225 10,618,102 _ 18.664 - 18,664 18,004 - - 194,051 36,346 - 11500 - 1,270,009 9,577,506 11,054,006 10,719,158 2.1 17.873 - 2,1 17;873 2,123,425 1.110 - 1,110 - 10,587 895,344 149,013 - 6,917,572 9,077,880 19267,394 9286,459 10.587 895-344 149,013 9,036,555 9,077.880 21,386,377 11,409,884 10,587 907,844 149,01) 10-306,564 18,655,386 32,440,443 22,129,042 85 I LLVIJl 1 1111111 1 11 Iu ✓..uw♦ - -vu'I i ii,a..� I ib i "'.-i � - CITY OF LA QUINTA Non -Major Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2005 Lighting Gas Federal Indian and Tax Assistance SLEBG Gaming Landscape RCTC Quimby Revenues: Taxes $ - - - _ _ _ - Developer fees - - - - - - 1,667,144 Intergovenunental 624,196 30,000 100,000 177,250 - - - Investment income 5,474 - 588 3,117 - - 21,438 Special assessments - - - - 825,292 - - Rental income - - - _ _ Loan repayments - - - _ Miscellaneous - - - _ _ _ _ Total revenues 629,670 30,000 100,588 180,367 825,292 - 1,688,582 Expenditures: Current: Public safety - - - _ _ _ _ Planning and development - - - - _ Public works 622,200 - - - 789,884 - - Capital outlay - - - - _ Total expenditures 622,200 - - - 789,884 - - Excess (deficiency) of revenues over (under) expenditures 7,470 30,000 100,588 180,367 35,408 - 1,688,582 Other financing sources (uses): Transfers in - - - - _ _ _ Transfers out (195,531) (197,239) (100,000) (37,427) - - (289,716) Proceeds from sale of capital assets CITY OF LA QUINTA Special Revenue Funds State Gas Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 CITY OF LA QUINTA Special Revenue Funds Federal Assistance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Intergovernmental Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficit) at beginning of year Fund balances (deficit) at end of _year Budget Ori�(ginal Final S 160,000 340,355 1602000 340,355 Variance with Prior Final Budget Year Actual Positive (negative) Actual 30,000 (310,355) 30,000 30,000 (310,355) 30,000 (30,000) (509,535) (197,239) 312,296 (32,753) (30,000) (509,535) (197,239) 312,296 (32,753) 130,000 (169,180) (167,239) 1,941 (2,753) (10,073) (10,073) S 119,927 (179,253) (10,073) - (T320) (177,312 _ 1,941 (10,073) 89 CITY OF LA QUINTA Special Revenue Funds State Law Enforcement Block Grant (SLEBG) Fund 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: Intergovernmental $ - 100,000 100,000 - 100,000 Investment income - - 588 588 122 Total revenues - 100,000 100,588 588 100,122 Other financing sources (uses): Transfers out - 100,000 100,000 - 107,974 Total other financing sources (uses) - 100,000 100,000 - 107,974 Net change in fund balances - - 588 588 (7,852) Fund balances at beginning of year - - - - 7,852 Fund balances at end of year $ - - 588 588 - 90 CITY OF LA QUlNTA Special Revenue Funds Indian Gaming Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30„ 2005 Revenues: Intergovernmental Investment income Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) _Actual $ - 177,250 177,250 - - - 3,117 3,117 - 177,250 180,367 3,1 17 - (177 250) (37,427) 139,82' - (177,250) (37,427) 139,823 _ 142,940 142,940 - $ _ - 142,940 142,940 - 91 CITY OF LA QUINTA Special Revenue Funds Lighting and Landscape Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Special assessments Total revenues Expenditures: Current: Public works Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 825,800 825,800 825,292 508) 816,045 825,800 825,800 825,292 508 816,045 825,800 825,800 789,884 825,800 825,800 789,884 - - 35,408 $ - - 35,408 92 35,916 35,916 35,408 35,408 816,045 816,045 CITY OF LA QUINTA Special Revenue Funds Riverside County Transportation Commission (RCTC) Fund 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 hwestment income S 100,000 411,644 - (41 1,644) - Total revenues 100,000 411,644 - (411,644) - Other financing sources (uses): Transfers out (17660,635) (2,056,829) - 2,056,829 - Total other financing sources (uses) (1,660,635) (2,056,829) - 2,056,829 Net change in fund balances (1,560,635) (1,645,185) - 1,645,185 - Fund balances at beginning of year - _ _ - - Fund balances at end of year $ (1,560,635) (1,645,185) - 1,645,185 - 93 CITY OF LA QUINTA Special Revenue Funds Quimby Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Developer fees Investment income Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 150,000 150,000 1,667,144 1,517,144 344,198 3,900 3,900 21,438 17,538 8,387 153,900 153,900 1,688,582 1,534,682 352,585 - 945,147 289,716 655,431 146,321 - 945,147 289,716 655,431 146,321 153,900 (791,247) 1,398,866 2,190,113 206,264 595,035 595,035 595,035 - 388,771 $ 748,935 196,212 1,993,901 2,190,113 595,035 CITY OF LA QUNTA Special Revenue Funds Public Safety Fund 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 Investment income $ 100 100 Total revenues 100 100 Expenditures: Current: Public safety 2,000 2,000 Total expenditures 2,000 2,000 Excess (deficiency) of revenues over (under) expenditures (1,900) (1,900) Other financing sources (uses): Transfers in 2,000 2,000 Total other financing 174 174 74 159 74 159 2,000 - 2,000 - 174 2,074 159 2,000 sources (uses) 2,000 2,000 2,000 Net change in fund balances 100 100 2,174 Fund balances at beginning of year 8,413 8,413 8,413 Fund balances at end of year $ 8,513 8,513 10,587 2,000 - 2,000 2,074 2,159 6,254 2,074 8,413 95 CITY OF LA QUIN'TA Special Revenue Funds Arts in Public Places Fund 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: Developer fees $ 97,500 97,500 254,834 157,334 287,054 Investment income 1,100 1,100 15,262 14,162 13,578 Total revenues 98,600 98,600 270,096 171,496 300,632 Expenditures: Current: Community services 5,300 5,300 - 5,300 - Capital outlay 447,425 188,813 60,429 128,384 124,821 Total expenditures 452,725 194,113 60,429 133,684 124,821 Excess (deficiency) of revenues over (under) expenditures 354,125 95,513 209,667 305,180 175,811 Other financing sources (uses): Transfers out - 366,826 79,011 287,815 19,166 Net change in fund balances (354,125) (462,339) 130,656 592,995 156,645 Fund balances at beginning of year 764,688 764,688 764,688 - 608,043 Fund balances at end of year $ 410,563 302,349 895,344 592,995 764,688 CITY OF LA QUINTA Special Revenue Funds Urban Forestry Fund 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 Intergovernmental $ 1,100 1,100 - (1,100) Total revenues 1,100 1,100 - (1,100) - Net change in fund balances 1,100 1,100 - (1,100) - Fund balances at beginning of year - - - - - Fund balances (deficit) at end of year $ 1,100 1,100 - (1,100) - 97 CITY OF LA QUINTA Special Revenue Funds South Coast Air Quality Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Intergovernmental Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final Variance with Prior Final Budget Year Actual Positive (negative) Actual $ 34,415 250,819 227,682 (23,137) 2,000 2,000 3,146 1,146 36,415 252,819 230,828 21,991 22,945 22,945 12,878 10,067 22,945 22,945 12,878 10,067 13,470 229,874 217,950 11,924 216,404 198,983 17,421 216,404 198,983 17,421 13,470 13,470 18,967 13 0, 046 130,046 13 0, 046 $ 143,516 143,516 149,013 M. 5,497 5,497 35,448 2,072 37,520 17,386 17,386 20,134 20,134 109,912 130,046 CITY OF LA QUlNTA Special Revenue Funds Congestion Management Air Quality (CMAQ) Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Intergovernmental Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original _Final Actual Positive (negative) Actual $ 553,785 553,785 419,323 (134,462) - 553,785 553,785 419,323 (134,462) - (5-3,785) (419,323) 134,462 - (553,785) (419,323) 553,785 - - $ 553,785 - - 134,462 99 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 1 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 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 Proceeds from sale of capital assets Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year (1,733,369) (2,478,347) (2,478,347) - (3,948,080) 150,000 990,000 668,642 (321,358) - (1,583,369) (1,488,347) (1,809,705) 1,238,402 (266,548) 5,226,407 3,810,148 3,810,148 3,810,148 $ 5,048,550 3,543,600 9,036,555 100 321,358 5,492,955 5,492,955 3,948,080 (303,022) 4,113,170 3,810,148 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Income Housing Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Taxes S 3,1 15,000 3,345-543 3,509,241 163,698 3.031,668 Del -°eloper fees T054,074 T054,074 - (7,054,074) 622,305 Investment income 24,100 24,100 140.742 116,642 109,504 Rental income - - 209,669 209,669 63,580 Repayment of loans - - 132,747 332,747 122,422 Miscellaneous - - - _ - 108,569 Total revenues I O,193,174 10,423,717 4,192,399 (6.23 I.318) 4,058.048 Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Proceeds froin sale of capital assets Total other financing sources (uses) Net change in fund balances Fund balances at beginning of �-ear Fund balances at end of Near 5,363,759 6,047,702 1,350,908 5.363,759 6.047-702 1.350,908 4,829,415 4,376,015 2,841,491 (337.867) (7,3507044) (7,363,357) 8,637.300 7,897,653 (337.867) 1.287,256 534,296 4,491.548 5,663,271 3,375,787 5,702-093 5,702,093 5,702,093 510,193,641 11,365,364 9,077,880 4,696,794 562.895 4.696,794 562,895 (1,534,524) 3.495,153 (13313) (3,775,970) (73 9, 647) -_ (752,960) (3,775970) (2,287,484) (280,817) - 5,982.910 (1287,484) 5,702,093 101 (This page intentionally left blank) 102 MAJOR DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental long -tern debt principal and interest. The City of La Quinta has the following Debt Service Funds: Redevelopment Agency, P.A. No. 1 and No. 2 - To account for the accumulation of resources for the payment of debt service for bond principal interest and trustee fees. La Quinta Financing Authority Fund - To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center and 2004 Local Agency Revenue Bond debt obligations. CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 1 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Taxes Investinent income Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Payment to bond escrow Payments under pass -through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Payment to bond escrow Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final Actual Variance with Prior Final Budget Year Positive (negative) Actual $ 24,985,400 25,923,915 27,093,693 1,169,778 23,966,954 66,000 66,000 255,628 189,628 201,721 25,051,400 25,989,915 27,349,321 1,359,406 24,168,675 496,585 496,585 365,810 130,775 377,920 5,455,689 3,121,114 3,121,114 - 2,920,707 9,798,281 8,882,733 8,967,948 (85,215) 9,018,569 - - - - 1,253,848 14,177,282 14,338,587 14,421,097 (82,510) 11,767,922 29,927,837 26,839,019 26,975,969 (36,950) 25,338,966 (4,876,437) (849,104) 473,352 1,322,456 (1,170,291) 1,733,369 2,478,347 2,478,347 - (2,438,029) (2,438,029) 1,733,369 40,318 40,318 (3,143,068) (808,786) 513,670 4,088,071 4,088,071 4,088,071 $ 945,003 3,279,285 4,601,741 104 (15,708,019) 18,693,322 - 2,985,303 1,322,456 1,815,012 - 2,273,059 1,322,456 4,088,071 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 RevCIILI S: Taxes Investment income Total revenues Expenditures: Current Planning and development Debt service: Principal Interest Payment to bond escrow Payments under pass -through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Pavmentto bond escrow Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year Budget Original Final Actual Variance with Prior Final Budget Year Positive (negative) _Actual $ 12,459,800 13.382.t73 14,036962 654,789 12,12)6.671 _ - 174.272 174,272 75,625 12.459.800 13,382,173 14211,234 829,061 12202,296 179.013 179,013 180,374 (1,361) 168-993 185_425 95,000 19�,000 570.706 1,782.844 1,782.844 10,605_577 11_394,169 _1133224 11.540.721 13.451,026 13,493.442 919,079 (68,853) 717.792 337.867 4,099,819 4,142,039 - (994,948) (994.948) (I00,000) 276,169 1 53 6,694 337,259 58,945, 9,680.225 (42,416) 1 1,999.330 786,645 202966 - (4,246,981) 42.220 4.922,224 - (5,80000) 337.867 3,104,971 3,147,091 42,220 (5_124,757) 1,256,946 3,036,018 3,864,883 829,865 (4,921,791) (11,104,297) (11,104.297) (I I ,104,297) - (6,182,506) $ (9 847,351) (8 068279) (7,239,414) 828,865 (11,104.297) 10� CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 58 58 100 Rental income 681,200 681,200 681,220 20 680,772 Miscellaneous 10,000 10,000 3,481 (61519) 9,686 Total revenues 691,200 691,200 684,759 (6,441) 690,558 Expenditures: Current: Planning and development 9,686 9,686 5,231 4,455 5,205 Debt service: Principal 315,000 315,000 315,000 - 300,000 Interest 366,220 3,356,269 3,356,269 - 380,830 Total expenditures 690,906 3,680,955 3,676,500 4,455 686,035 Excess (deficiency) of revenues over (under) expenditures 294 2,989,755 2,991,741 (1,986) 4,523 Other financing sources (uses): Transfers in - 2,990,049 2,990,049 - - Total other financing sources (uses) - 2,990,049 2,990,049 - - Net change in fund balances 294 294 (1,692) (1,986) 4,523 Fund balances at beginning of year 5,052 5,052 5,052 - 529 Fund balances at end of year $ 5,346 5,346 3,360 (1,986) 5,052 106 MAJOR AND NON -MAJOR CAPITAL PROJECTS FUNDS Capital projects funds account for the financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. The City of La Quinta has the following Major Capital Projects Funds: Capital hriprovement Fund - To account for the planning, design and construction of various capital projects throughout the City of La Quinta and the Redevelopment Agency. Redevelopment Agency. Capital Projects Fund Area 1 — To account for the bond proceeds, interest and other funding that Ny111 be used for development, planning, construction and land acquisition. 2004 Low/Moderate Bond Fund -- To account for the 2004 revenue bond proceeds that will be used to finance projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. I and Project Area No. 2. The City of La Quinta has the following Non -Major Capital Projects Funds: Infrastructure Fund - To account for the accumulation of resources provided through developer Fees for the acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this date, and is budgeted by the Council through adoption of the annual capital improvement program budget. "Transportation Fund Parks and Recreations Fund, Civic Center Fund Library Development Fund Community Center Fund. Street Facility Fund, Park Facility Fund, Fire Facility Fund —To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City's infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Six new funds have been established to account for the specific impact areas of these fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program budget. County Library Development Fund — To account for the accumulation of County resources for the acquisition. construction or improvement of the City's library. Assessment District 2000-1 Phase VI Fund — To account for the bond proceeds and other funding that will be used for improvements to Assessment District 2000-1. Redevelopment Agency. Capital Projects Fund Area 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. Redevelopment Agency Taxable Capital Projects Fund Area 1 — To account for the bond proceeds, interest and other funding that will be used to finance capital projects. Financing Authority Capital Projects Fund - To account for the Public Financing Authority bond proceeds that will be used for specific projects and programs of the City. 107 CITY OF LA QUINTA Non -Major Capital Projects Funds Combining Balance Sheet June 30, 2005 County Parks and Civic Library Library Communit Infrastructure Transportation Recreation Center Development Development Center Assets Cash and investments $ 863,719 7,165,737 169,039 2,151,594 - 9,554 791,680 Cash with fiscal agent - - - _ _ _ Accounts receivable - - - - _ _ Interest receivable 4,872 37,700 2,287 11,082 327 4,033 Advances to other funds - - - - _ _ Total assets $ 868,591 7,203,437 171,326 2,162,676 9,881 795,713 Liabilities and Fund Balances Liabilities: Accounts payable Deposits payable Due to other funds Advances from other funds - 3,440,349 2,498,530 - Total liabilities 3,440,349 2,498,530 Fund balances: Unreserved: Designated for capital projects 868,591 7,203,437 2,162,676 9,881 795,713 Undesigated - - (3,269,023) - (2,498,530) - - Total fund balances 868,591 7,203,437 (3,269,023) 2,162,676 (2,498,530) 9,881 795,713 Total liabilities and fund balances $ 868,591 7,203,437 171,326 2,162,676 9,881 795,713 108 Redevelopment Redevelopment Agency Financing Slrcel Park Fire A.D. 2000-1 Auency Taauhle Bond Authority Totals Facilitv Facility racility Phase V1 PA No. 2 PA No.1 Projects 2005 2004 178 4 35 44.717 - 310-050 485,119 1.921 12,171,565 14.014,300 - 5,096 5.o96 8545,446 60 900 - 60.900 63.104 1i()7 226 1.511 071 63.616 48.668 - 1.122,148 - _1.122148 1260,695 1 T)342 44.943 31 1.561 1.008.838 7,017 13A23.325 23.93,2213 & 17f 8,170 16,894 - 27.835 - 27.835 27,835 37 2.746937 I122,1-18 - 7,061.027 5336,158 1,122,185 36,005 11,097,069 8,127.824 79.342 44.943 311.561 1.632.833 7,017 13_215,994 20.926.930 (1.122185) (6.889,738) (5A22.541) 179342 44,943 (1,122,1'85) 311561 1.632.83, 7,017 6326256 15.804.389 179.342 44,943 31 L561 1.668,938 7,017 1 ' 423 325 23.932213 CITY OF LA QUINTA Non -Major Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2005 County Parks and Civic Library Library Cornmunity Infrastructure Transportation Recreation Center Development Development Center Revenues: Developer fees $ - 2,239,022 717,856 576,248 297,033 - 138,328 Intergovernmental - - - - - 190,863 - Investrnent income 16,302 131,328 3,953 37,658 24,750 1,699 13,669 Total revenues 16,302 2,370,350 721,809 613,906 321,783 192,562 151,997 Expenditures: Current: General government - - - 205,410 - - - Plarming and development - - _ _ Public works - 392,878 - _ Debt service: Interest and fiscal charges - - 81,740 - 8,482 - - Total expenditures - 392,878 81,740 205,410 8,482 - - Excess (deficiency) of revenues over (under) expenditures 16,302 1,977,472 640,069 408,496 313,301 192,562 151,997 Other financing sources (uses): Issuance of tax allocation bonds - - _ _ _ _ _ Issuance of revenue bonds - - _ _ _ Bond premium and discount - - - - _ Transfers in - - _ _ _ Transfers out 296,820 1,113,129 (47,440) 135,607 3,746,450 590,863) - Total other financing sources (uses) (296,820) 1,113,129 (47,440) 135,607 3,746,450 (590,863) - Net change in fund balances (280,518) 864,343 592,629 272,889 (3,433,149) (398,301) 151,997 Fund balances (deficit) at begimungofyear 1,149,109 6,339,094 (3,861,652) 1,889,787 934,619 408,182 643,716 Fund balances (deficit) at end of yea $ 868,591 7,203,437 3,269,023) 2,162,676 2,498,530 9,881 795,713 110 Redevelopment Redevelopment Agency Financing Street Park I=ire AD. 2000-1 Agency Taxable Bond Authority Totals Facility Facility Facility Phase V1 PA No. 2 PA No l Projects 2005 2004 30.495 7.182 1(i3,014 - 4,169.179 4,444241 - 190.863 200 000 3.075 792 6.559 38,475 39.59 3 93 17,946 34 3,319 „ 7 7 974 163,014 6.559 38,475 39.593 93 4,077,987 4987,500 - 205,410 207.150 _ - 193,088 193,088 174,152 - 392.879 63,050 24.310 - 48,076 162,_609 1,632,894 24.310 - 193,088 48,076 953.984 2,077 252 3.57O 7.974 138,704 6.559 (154613) 39.593 ("47,983) 3,724.003 2,910,308 26,400.000 _ - 90,000,000 _ (1,506,396) (147,372) (1,341,046) (5,7837409 (13,202,136) (116,906,003) - (147.172) (1,341.046) (5.783.409) (13202.136) 3,787.601 3,>70 7.974 138.704 (140.813) (1,495.659) (5,743,816) (47,98 ) (9,478,133) 069790O 145.772 36969 (1,260,889) 452.374 3.128,492 5;743.816 55.000 15.804.389 9,100,480 179.342 44,943 (IJ22185) 311,561 1,632,833 7,017 6.326256 15.804,389 CITY OF LA QUINTA Capital Projects Funds Capital Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Budget Original Final Actual Revenues Developer fees $ - 87,500 - Intergovernmental - 8,476,114 921,527 Miscellaneous - - - Total revenues - 8,563,614 921,527 Expenditures: Capital projects 15,011,762 83,670,473 39,559,080 Debt service: Principal 162,546 162,546 162,546 Interest and fiscal charges 85,908 85,908 85,908 Total expenditures 15,260,216 83,918,927 39,807,534 Excess (deficiency) of revenues over (under) expenditures (15,260,216) (75,355,313) (38,886,007) Other financing sources (uses): Transfers in - 75,355,313 38,886,007 Transfers out - - - Total other financing sources (uses) - 75,355,313 38,886,007 Net change in fund balances (15,260,216) - - Fund balances at beginning of year - - - Fund balances at end of year $ (15,260,216) - - 112 Variance with Prior Final Budget Year Positive (negative) Actual (87,500) - (7,554,587) 5,931,382 153,000 (7,642,087) 6,084,382 44,111,393 43,207,098 44,111,393 43,207,098 36,469,306 (37,122,716) (36,469,306) 44,625,349 (7,502,632) (7,502,632) (43,971,938) 37,122,716 (7,502,632) - (7,502,632) - CITY OF LA QU`fNTA Capital Projects Funds Redevelopment Agency Project Area No. 1 Fund Schedule of Revenues. Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Investment income Rental income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in find balances Fund balances at beginning of year Fund balances at end of year Variance Nvith Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual S - 900,000 767.036 (132,964) 635,823 _ - - 6,794 900,000 767.036 (132,964) 642.617 607.306 503.706 5 -58,792 (55,090) 1832.408 607.306 503.706 559,792 (55,086) 1,8327408 (607.306) 396,294 208244 (188.050) (1,189.791) 442,928 442,928 - 14,064,243 (2-776.000) (39.762,752) (17.612-949) 22.149.803 (6,561,612) (2,776,000) (39,319,824) (177170,021) (3,383,306) (38,923,530) (16,961,777) 47,403,373 47,403.373 47,403,373 S 44 020,067 8,479.843 30.441,596 22,149,803 7,502,631 21.961,753 6,312.840 - 41,090,533 21,961,753 47,403373 113 CITY OF LA QUINTA Capital Projects Funds 2004 Low/Moderate Income Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: hnvestment income Total revenues Other financing sources (uses): Transfers in Transfers out Total other fi iancuig sources (uses) Net change in fund balances Fund balances at beginning of year Fluid balances at end of year Variance with Prior Budget Final Budget Year Origuial Final Actual Positive (negative) Actual $ - 1,000,000 1,191,332 191,332 2,781 - 1,000,000 1,191,332 191,332 2,781 - 66,323,236 (1,920,965) (753,613) 1,167,352 (8,669,035) - (1,920,965) (753,613) 1,167,352 57,654,201 - (920,965) 437,719 1,358,684 57,656,992 57,656,982 57,656,982 57,656,982 - - $ 57,656,982 56,736,017 58,094,701 1,358,684 57,656,982 114 CITY OF LA QLINTA Capital Projects Funds Infrastructure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Investment income Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final Variance NNnth Final Budget Actual Positive (negative) $ 15,600 15,600 10,302 15.600 15.600 16,302 702 Prior Year Actual 31,458 3 1,45 8 - (1,140,356) (290.820) 843,536 (1,120,840) - (I,140,356) (296,820) 843.536 (1,120,840) 15,600 (1,124,756) (280,518) 844,238 (1,089-382) 1.149,109 1,149.109 1.149.109 - 2238491 S 1,164 709 24,353 868,591 844,238 1,149,109 115 CITY OF LA QUINTA Capital Projects Funds Transportation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Budget Original Final Actual Revenues Developer fees $ 721,400 721,400 2,239,022 Investment income 37,300 37,300 131,328 Total revenues 758,700 758,700 2,370,350 Expenditures: Current: Public works - 392,878 392,878 Total expenditures - 392,878 392,878 Excess (deficiency) of revenues over (under) expenditures 758,700 365,822 1,977,472 Other financing sources (uses): Transfers out (1,853,550) (4,377,866) 1,113,129) Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year (1,853,550) (4,377,866) (1,113,129) (1,094,850) (4,012,044) 864,343 6,339,094 6,339,094 6,339,094 $ 5,244,244 2,327,050 7,203,437 116 Variance with Prior Final Budget Year Positive (negative) Actual 1,517,622 2,358,474 94,028 90,615 1,611,650 2,449,089 63,050 63,050 1,611,650 2,386,039 3,264,737 (22,420) 3,264,737 22,420) 4,876,387 2,363,619 - 3,975,475 4,876,387 6,339,094 CITY OF LA QUINTA Capital Projects Funds Parks and Recreation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Developer fees Investment income Total revenues Expenditures: Debt service: Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fiend balances Fund balances (deficit) at beginning of vear Fund balances (deficit) at end of vear Budget Original Final Variance with Final Budget Actual Positive (negative) Prior Year Actual 251.000 501.000 717,856 216.856 837,41 1 _ 3.953 3.953 21,823 251,000 501MO 721,809 22U09 85 9,23 4 - 81,740 (81,740) 103,476 81,740 (81,740) 103,476 251.000 501,000 640,069 139.069 755,758 - (214,814) (47,440) 167,3'74 (403.751) - (2147814) (47,440) 167,374 (403,751) 251.000 286,186 592,629 306.443 352.007 (3 861.652) (3 861,652) (3.861,652) - (4,213,659) S (3,610,652) (3,5757466) (3,269,023) 306,443 (3,861,652) 117 CITY OF LA QUINTA Capital Projects Funds Civic Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Developer fees Investment income Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 192,500 192,500 576,248 383,748 539,955 - - 37,658 37,658 33,929 192,500 192,500 613,906 421,406 573,884 204,366 204,366 205,410 1,044 207,156 204,366 204,366 205,410 1,044 207,156 (11,866) 11,866 408,496 420,362 366,728 (3,081,187) 3,281,724 135,607) 3,146,117 260,154 (3,081,187) 3,281,724 135,607 3,146,117 260,154 Net change in fund balances (3,093,053) (3,293,590) 272,889 3,566,479 106,574 Fund balances at beginning of year 1,889,787 1,889,787 1,889,787 - 1,783,213 Fund balances at end of year $ 1,203,266 1,403,803 2,162,676 3,566,479 1,889,787 118 CITY OF LA QUINTA Capital Projects Funds Library Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Developer fees $ 112,500 112,500 297,033 184,533 356,492 Investment income - - 24,750 24,750 17,177 Total revenues 112,500 112,500 321,783 209,283 373,669 Expenditures: Debt service: Interest and fiscal charges - - 8,482 (8,482) - Total expenditures - - 8,482 (8,482) - Excess (deficiency) of revenues over (under) expenditures 112,500 112,500 313,301 200,801 373,669 Other financing sources (uses): Transfers out - (3,746,450) (3,746,450) - (328,480) Total other financing sources (uses) - (3,746,450) (3,746,450) - (328,480) Net change in fund balances 112,500 (3,633,950) (3,433,149) 200,801 45,189 Fund balances at beginning of year 934,619 934,619 934,619 - 889,430 Fund balances (deficit) at end ofyear $ 1,047,119 (2,699,331) (2,498,530) 200,801 934,619 119 CITY OF LA QUINTA Capital Projects Funds County Library Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Intergovernmental $ 190,863 190,863 190,863 - 200,000 Investment income 100 100 1,699 1,599 5,879 Total revenues 190,963 190,963 192,562 1,599 205,879 Other financing sources (uses) Transfers out - 590,863 (590,863 Total other financing sources (uses) - 590,863 590,863 Net change in fund balances 190,963 (399,900) (398,301) Fund balances at beginning of year 408,182 408,182 408,182 Fund balances at end of year $ 599,145 8,282 9,881 120 1,599 205,879 - 202,303 1,599 408,182 CITY OF LA QUINTA Capital Projects Funds Community Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual ositive (negative Actual Revenues: Developer fees $ 48,500 48,500 138,328 89,828 153,585 Investment income 10,700 10,700 13,669 2,969 10,338 Total revenues 59,200 59,200 151,997 92,797 163,923 Fund balances at beginning of year 643,716 643,716 643,716 - 479,793 Fund balances at end of year $ 702,916 702,916 795,713 92,797 643,716 121 CITY OF LA QUINTA Capital Projects Funds Street Facility Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues Developer fees $ 9,800 9,800 30,495 20,695 31,828 Investment income 1,900 1,900 3,075 1,175 2,435 Total revenues 11,700 11,700 33,570 21,870 34,263 Fund balances at beginning of year 145,772 145,772 145,772 - 111,509 Fund balances at end of year $ 157,472 157,472 179,342 21,870 145,772 122 CITY OF LA QUINTA Capital Projects Funds Park Facility Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Developer fees Investment income $ 2,500 500 2,500 500 7,182 792 4,682 292 9,151 637 Total revenues 3,000 3,000 7,974 4,974 9,788 Fund balances at beginning of year 36,969 36,969 36,969 - 27,181 Fund balances at end of year $ 39,969 39,969 44,943 4,974 36,969 123) CITY OF LA QUINTA Capital Projects Funds Fire Facility Fund 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: Developer fees $ 32,100 32,100 163,014 130,914 157,345 Investment income - - - - 598 Total revenues 32,100 32,100 163,014 130,914 157,943 Expenditures: Debt service: Interest and fiscal charges - - Total expenditures - - Excess (deficiency) of revenues over (under) 24,310 24,310 10,186 24,310 24,310 10,186 expenditures 32,100 32,100 138,704 106,604 147,757 Other financing sources (uses): Transfers out (1,500,000) (1,500,000) Total other financing sources (uses) 1,500,000 (1,500,000) Net change in fund balances (1,467,900) (1,467,900) Fund balances (deficit) 1,500,000 1,500,000 - 1,500,000 (1,500,000 138,704 114,657 (1,352,243) at beginning of year (1,260,889) (1,260,889) (1,260,889) - 91,354 Fund balances (deficit) at end of year $(2,728,789) (2,728,789 1,122,185 114,657 1,260,889 124 CITY OF LA QUINTA Capital Projects Funds A.D. 2000-1 Phase VI Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Investment income Total revenues Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual $ 6,000 6,000 6,559 559 8,013 6,000 6,000 6,559 559 8,013 (142,507) (147,372) (4,865) - - (142,507) _(147,372) 6,000 (136,507) (140,813) 452,374 452,374 452,374 $ 458,374 315,867 311,561 (4,865) - (4,306) 8,013 - 444,361 (4,306) 452,374 125 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Project Area No. 2 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Revenues: Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budget Original Final Variance with Final Budget Actual Positive (negative) $ - 50,000 38,475 (11,525) - 50,000 38,475 11,525 202,413 202,413 193,088 9,325 202,413 202,413 193,088 9,325 Prior Year 49,219 49,219 174,152 174,152 (202,413) 152,413 154,613 2,200 124,933 (1,826,079) (1,341,046) 485,033 (1,826,079) (1,341,046) (202,413) (1,978,492) (1,495,659) 3,128,492 3,128,492 3,128,492 $ 2,926,079 1,150,000 1,632,833 126 485,033 482,833 482,833 5,800,000 5,623,604 176,396 51,463 3,077,029 3,128,492 CITY OF LA QUINTA Capital Projects Funds Redevelopment Agency Taxable Bond Project Area No. I 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: Investment income $ - 50.000 39.593 (10,407) 71,198 Total revenues - 50,000 39,593 (10,407) 71.198 Expenditures: Debt service: - 949968 Interest and fiscal charges- - Total expenditures - - - - 949,968 Excess (deficiency) of revenues over (under) expenditures - 50M00 39.593 (10,407) (878,770) Other financing sources (uses): Issuance of revenue bonds - - - - 26,400,000 Transfers out - (5 778,816) (5,783,409) (4,593) (19,777,414) Total other financing sources (uses) _ (5 778.816) (5,783.409) (4.593) 6.622.586 Net change in fund balances - (5,728,816) (5,743,816) 5,743,816 5,743,816 Fund balances at beginning of year 5.743,816 5,743.816 5,743.816 - - Fund balances at end of year $ 5,743,816 15,000 - 5,743,816 5.743,816 127 CITY OF LA QUINTA Capital Projects Funds Financing Authority Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2005 Variance with Prior Budget Final Budget Year Original Final Actual Positive (negative) Actual Revenues: Investment income $ - - 93 93 - Total revenues - - 93 93 - Expenditures: Debt service: Interest and fiscal charges - 55,000 48,076 6,924 2,075,660 Total expenditures - 55,000 48,076 6,924 2,075,660 Excess (deficiency) of revenues over (under) expenditures - (55,000) (47,983) 6,924 (2,075,660) Other financing sources (uses): Issuance of revenue bonds - - - - 90,000,000 Transfers in - 131,792 - (131,792) - Transfers out - - - - (87,869,340) Total other financing sources (uses) - 131,792 - - 2,130,660 Net change in fund balances - 76,792 (47,983) (76,792) 55,000 Fund balances (deficit) at beginning of year 55,000 55,000 55,000 - - Fund balances at end of year $ 55,000 131,792 7,017 (76,792) 55,000 128 INTERNAL SERVICE FUNDS Internal service funds are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. fhe City of La Quinta has the following Internal Service Funds Equipment Replacement Fund used to account for the ultimate replacement of City owned and operated vehicles and equipment. Information Technology Fund — used to account for the purchase and replacement of information systems. Park Equipment and Facilities Fund used to account for the purchase and replacement of City owned park facility infrastructure. 129 Assets Current assets: Cash and investments Prepaid items Interest receivable Due from other governments Capital assets, net Total assets Liabilities Current liabilities: Accounts payable Accrued salaries and benefits Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets CITY OF LA QUINTA Internal Service Funds Combining Statement of Net Assets June 30, 2005 Park Equipment Information Equipment Replacement Technology and Facility Totals 2005 2004 $ 2,683,698 489,593 253,314 3,426,605 3,084,392 - 49,086 - 49,086 - 13,802 2,842 1,250 17,894 11,643 - - - - 3,932 668,943 339,309 14,215,693 15,223,945 1,111,924 3,366,443 880,830 14,470,257 18,717,530 4,211,891 14,101 6,885 - - 4,024 - 14,101 10,909 - 20,986 28,884 4,024 - 25,010 28,884 668,943 339,309 14,215,693 15,223,945 1,111,924 2,683,399 530,612 254,564 3,468,575 3,071,083 $ 3,352,342 869,921 14,470,257 18,692,520 4,183,007 130 CITY OF LA QUINTA Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Assets Year ended June 30, 2005 Park Equipment Information Equipment Totals Replacement Technology and Facility 2005 2004 Operating revenues: Charges for services $ 325,069 406,111 250,000 981,180 694,960 Total operating revenues 325,069 406,111 250,000 981,180 694,960 Operating expenses: Salaries and benefits - 71,734 - 71,734 51,862 Fuel and oil 42,473 - - 42,473 33,390 Maintenance and parts 116,565 - - 116,565 138,406 Contract services 14,007 95,949 - 109,956 124,037 Software and supplies - 89,564 - 89,564 120,098 Depreciation 172,610 101,238 350,722 624,570 305,834 Other operating expenses 27,223 66,770 - 93,993 - Total operating expenses 372,878 425,255 350,722 1,148,855 773,627 Operating income (loss) (47,809) (19,144) (100 722) _ (167,675) (78,667) Non -operating revenues (expenses): investment income 50,364 11,394 4,564 66,322 58,469 Gain (loss) on sale of capital assets (564) 9,065 - 8,501 - Total non -operating revenues (expenses) 49,800 20,459 4,564 74,823 58,469 Income (loss) before transfers and capital contributions 1,991 1,315 (96,158) (92,852) (20,198) Capital contributions _ 15,213 20,737 14,566,415 14,602,365 346,750 Changes in net assets 17,204 22,052 14,470,257 14,509,513 326,552 Net assets at beginning of year 3,335,138 847,869 - 4,183,007 3,856,455 Net assets at end of year $ 3,352,342 869,921 14,470,257 18,692,520 4,183,007 131 CITY OF LA QUINTA Internal Service Funds Combining Statement of Cash Flows Year ended June 30, 2005 Park Equipment Information Equipment Totals Replacement Technology and Facility 2005 2004 Cash flows from operating activities: Cash received from other customers $ 325,069 406,111 250,000 981,180 706,028 Cash payments to suppliers for goods and services (189,066) (316,537) - (505,603) (375,765) Cash payments to emplyees - (67,710) - (67,710) (51,862) Net cash provided by (used for) operating activities 136,003 21,864 250,000 407,867 278,401 Cash flows from capital and related activities: Insurance proceeds 3,091 15,203 - 18,294 - Cash received from the sale of capital assets 350 - 350 - Cash paid to acquire capital assets (115,443) (29,890) - (145,333) (189,793) Net cash provided by (used for) capital and related activities (112,002) (14,687) - (126,689) (189,793) Cash flows from investing activities: Interest received on investments 47,365 10,356 3,314 61,035 46,826 Net cash provided by (used for) investing activities 47,365 10,356 3,314 61,035 46,826 Net increase (decrease) in cash and cash equivalents 71,366 17,533 253,314 342,213 135,434 Cash and cash equivalents at beginning of year 2,612,332 472,060 - 3,084,392 2,948,958 Cash and cash equivalents at end of year $ 2,683,698 489,593 253,314 3,426,605 3,084,392 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ (47,809) (19,144) (100,722) (167,675) (78,667) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 172,610 101,238 350,722 624,570 305,834 Adjustments: (Increase) decrease in due from other governments - 3,932 - 3,932 11,068 (Increase) decrease in prepaid items (49,086) - (49,086) - (Increase) decrease in other assets - (19,100) - (19,100) 47,995 Increase (decrease) in accounts payable 11,202 4,024 - 15,226 (7,829) Net cash provided by (used for) operating activities $ 136,003 21,864 250,000 407,867 278,401 Noncash capital, financing and investing activities: Fixed asset disposals $ (45,545) (19,951) - (65,496) (511,491) Fixed assets contributed by other funds 15,213 20,737 14,566,415 14,602,365 346,750 132 AGENCY FUNDS Agency funds are used to account for assets held by the City as an agent for an individual.. private organizations and other governmental units. The agency funds and their purposes are as follows: "The City of La Quinta has the following agency funds: Assessment District No. 88-1.. 89-2, 90-1, 91-1, 92-1, 97-1, 2000-1 - To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. CITY OF LA QUINTA Agency Funds Combining Balance Sheet June 30, 2005 Assessment Assessment Assessment Assessment District District District District No.88-1 No.89-2 No.90-1 No.91-1 Assets Cash and investments $ 92,159 58,715 108,996 127,511 Taxes receivable 1,021 100 1,951 4,681 Interest receivable 471 304 666 656 Total assets $ 93,651 59,119 111,613 132,848 Liabilities Deposits payable $ 93,651 59,119 111,613 132,848 Total liabilities $ 93,651 59,119 111,613 132,848 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 2005 Balance at June 30, 2004 Additions Deletions ASSESSMENT DISTRICT NO. 88-1 Assets Balance at June 30, 2005 CITY OF LA QUINTA A Qenev Funds Combinvug Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at June 30, 2004 Additions Deletions June 30.2005 ASSESSMENT DISTRICT NO. 9 1 -1 Assets Cash and investments $ 560,846 252,399 (685,734) 127,511 Taxes receivable - 4,691 - 4,681 Interest receivable 1,998 656 (1,998) 656 Total assets $ 562844 257,736 (687,732) 132,848 Liabilities Deposits payable S 562,844 256,310 (686,306) 132,848 ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments $ 385,734 216,471 (297,317) 304,888 Taxes receivable - 943 - 943 Interest receivable 1,345 1,496 (1345) 1 A96 Total assets $ 387,079 2I8,910 (298,662) 307,327 Liabilities Deposits payable $ 387-079 217.565 (297,317) 307,327 ASSESSMENT DISTRICT NO. 97-1 Assets Cash and investments $ 140.851 831,410 (98,157) 126,104 Taxes receivable - 3.450 - 3,450 Interest receivable 506 612 (506) 612 Total assets S 141,357 87,472 (98,663) 130,166 Liabilities Deposits payable S 141,357 86,966 (997157) 130,166 (Continued) CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at June 30, 2004 ASSESSMENT DISTRICT NO. 2000-1 Assets Cash and investments $ 484,977 Taxes receivable - Interest receivable 1,678 Total assets $ 486,655 Liabilities Deposits payable $ 486,655 TOTALS -ALL AGENCY FUNDS Assets Cash and investments $ 1,982,134 Taxes receivable - Interest receivable 6,973 Total assets $ 1,989,107 Liabilities Deposits payable $ 1,989,107 Total liabilities $ 1,989,107 138 Balance at Additions Deletions June 30, 2005 268,305 (349,709) 403,573 13,683 - 13,683 1,961 (1,678) 1,961 283,949 (351,387) 419,217 282,270 (349,708) 419,217 843,878 (1,604,066) 1,221,946 25,829 - 25,829 6,166 (6,973) 6,166 875,873 (1,611,039) 1,253,941 869,472 (1,604,638) 1,253,941 869,472 (1,604,638) 1,253,941 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 139 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds by Source ' June 30, 2005 and 2004 2005 2004 Governmental funds capital assets: Land $ 53,670,027 73,505,659 Buildings and improvements 15,311,445 24,032,644 Equipment and furniture 1,555,329 718,801 Vehicles - 161,052 Infrastructure 345,559,519 330,958,870 Construction in progress 27,794,113 27,932,823 Total governmental funds capital assets 443,890,433 457,309,849 Investment in general fixed assets by source: Capital projects funds 390,946,913 388,021,434 Redevelopment agency 52,943,520 69,288,415 Total government funds capital assets $443,890,433 457,309,849 ' This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service fund are excluded from the above amounts. Generally, the capital assets of the internal service funds are included as governmental activities in the statement of net assets. 140 CITY OF LA QUI TA Capital Assets Used in the Operation of Gcmemmellal Funds Schedule of Function and Activity June 30. 2005 Ruildinps and Equipment Constriction Land Improvements and Furniture Vehicles hitrastructure in Progress Totals Function and Activity General �-,overmnent. $ 3,320.,55 121,868 98.365 3,541),588 City manager 10,208 - - 10,208 Economic development - 24 299 PelSom]el - 24,299 - - ._ - 45,878 Central services- 45,878 - 135,366 - - li5,366 City clerk Total general goverment 3.320.355 146,167 289,917 - 3.756,339 Public safety 105,109 105,109 Police Building and safety administration - 10,030 10,( �0 33,475 Emergency services 33,475 - - 3,713.792 Fire 101,392 3,612,400 - Civic center building 9,712,796 64,599 - 432,730 10,210,125 operations Total public safety - ] 07,392 1 33,325,196 213,213 432,730 14,072.531 Community sen-ices: Community services - 1,779,478 1,769 l ,781,247 administration - - 7804,171 - , 7,804,171 Parks and recreation program - 2,024,743 Senior center 2019 454 5,289 _ - 3,077 3,077 Library Total community services = 2,019.454 5.289 _ 1,779.478 7,809.017 11,013238 Couununity development Community development - 48.025 - 48 administration Redevelopment agency - 50248280 060,000 - - 6,501.534 814 57.409 814 Total conm7umty development 50,248.280 660,000 48,025 _ 6,501,534 57,457.839 Public works: 5,374 0,374 Public works administration - - 18,555 - 329,197,689 12,594,348 341,810,592 Development and tragic Street maintenance and - 5.200 <2,618 2 .028,035 4.352 ZUEi0.205 operations Lighting and landscape, - 107,864 12,554.317 452.132 li,l 14,313 maintenance and operations - Total public works 5,200 154,411 343,780,041 13.050,832 356,990,484 Total governmental hinds 53,670,027 16,156,017 710,755 345,559,519 27,794,113 443,890.431 capital assets This schedule presents only the capital asset balances related to governmental hinds. Accordinply, the capital assets reported in the internal service funds are excluded from the above amounts_ Generally, the capital assets of the internal service fiends are included as L,overnmental activities in the statement of net assets. 141 CITY OF LA QUINTA Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity' June 30, 2005 Governmental Governmental Funds Capital Funds Capital Assets Assets Function and Activity July 1, 2004 Additions Deletions June 30, 2005 General government: City manager $ 7,171,324 - (3,630,736) 3,540,588 Economic development 10,208 - - 10,208 Personnel 24,299 - - 24,299 Central services 45,878 - - 45,878 City clerk 135,366 - - 135,366 Total general govermment 7,387,075 - (3,630,736) 3,756,339 Public safety Police 105,109 - - 105,109 Building and safety administration 10,030 - - 10,030 Emergency services 33,475 - - 33,475 Fire 3,851,937 3,635,307 (3,773,452) 3,713,792 Civic center building operations 10,629,743 - (419,618) 10,210,125 Total public safety 14,630,294 3,635,307 (4,193,070) 14,072,531 Community services Community services administration 12,919,273 141,208 (11,279,234) 1,781,247 Parks and recreation program 1,995,997 5,808,174 - 7,804,171 Senior center (14,440) 2,039,183 - 2,024,743 Library - 3,077 - 3,077 Total community services 14,900,830 7,991,642 (11,279,234) 11,613,238 Community development: Community development administration 48,025 - - 48,025 Redevelopment agency 79,465,462 33,657,336 (55,712,984) 57,409,814 Total community development 79,513,487 33,657,336 (55,712,984) 57,457,839 Public works: Public works administration 5,374 - - 5,374 Development and traffic 320,621,592 21,189,000 - 341,810,592 Street maintenance and operations 7,784,181 - (5,723,976) 2,060,205 Lighting and landscape maintenance and operations 12,467,016 647,297 - 13,114,313 Total public works 340,878,163 21,836,297 (5,723,976) 356,990,484 Total governmental funds capital assets $ 457,309,849 67,120,582 80,540,000 443,890,431 'This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of the internal service funds are included as governmental activities in the statement of net assets. 142 STATISTICAL SECTION 143 TABLE 1 CITY OF LA QUINTA General Fund Expenditures by Function Last Ten Fiscal Years Fiscal Year Ending General Public Public Community Planning & Capital June 30 Government Safety Works Service Development Projects Total 1996 1,793,301 3,227,438 813,352 413,142 1997 2,376,935 3,442,056 889,694 469,110 1998 2,229,389 4,099,523 1,159,372 494,402 1999 2,473,241 4,468,294 1,546,650 732,741 2000 2,814,604 4,992,811 1,704,996 768,528 2001 3,063,640 5,636,154 1,417,529 817,460 2002 2,960,339 7,609,121 1,536,033 1,014,474 2003 3,140,576 8,202,407 2,311,436 991,558 2004 3,892,220 9,672,180 3,103,794 1,025,397 2005 3,765,511 12,364,583 4,794,685 1,104,509 Source: City of La Quinta Audited Financial Statements 453,656 201,475 6,902,364 455,563 170,000 7,803,358 345,054 - 8,327,740 626,074 - 9,847,000 748,949 - 11,029,888 733,579 - 11,668,362 726,589 - 13,846,556 674,450 - 15,320,427 750,444 - 18,444,035 862,890 - 22,892,178 144 TABLE 2 CITY OF LA QUINTA General Fund Revenue by Source Last Ten Fiscal Years Fiscal Year Licenses Charges Litigation Ending and Inter- for Settlement June 30 Taxes Permits Governmental Services Proceeds Interest Miscellaneous Total 1996 5,393,456 998,030 815,980 610,873 12,386 905,420 230,705 8,966,850 1997 5,942,698 793,689 1,072,803 976,897 40,593 941,327 22,712 9,790,719 1998 6,764,355 1,144,562 1,110,553 1,228,269 281,382 1,164,145 114,969 11,808,235 1999 8,101,191 1,951,981 1,466,788 1,965,219 740,985 1,569,796 74,529 15,870,489 2000 8,888,825 2,493,360 2,388,749 1,922,097 - 1,868,073 106,371 17,667,475 2001 10,331,970 2,057,423 2,164,891 1,998,589 - 2,513,789 43,547 19,110,209 2002 10,443,436 1,857,691 3,683,490 1,757,744 - 2,030,346 529,190 20,301,897 2003 11,572,985 1,982,127 4,394,045 2,302,759 - 1,894,303 87,240 22,233,459 2004 13,184,050 3,096,145 4,895,986 2,619,578 2,335,154 109,388 26,240,301 2005 16,762,028 3,226,167 7,552,035 3,402,602 3,238,808 513,030 34,694,670 (1 ) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source Source: City of La Quinta Audited Financial Statements 145 TABLE 3 CITY OF LA QUINTA Property Tax Levies and Collections Last Ten Fiscal Years Percent of Fiscal Year Total Current Percent Delinquent Total Ending Tax Tax of Levy Tax Collections June 30 Lem Collection Collected Collections to Tax Levy 1996 670,398 643,309 96.0% 2,312 96.3% 1997 824,073 760,350 92.3% - 92.3% 1998 886,175 980,838 110.7% - 110.7% 1999 991,001 1,148,040 115.8% - 115.8% 2000 1,001,074 1,005,983 100.5% - 100.5% 2001 $1,071,723 $1,091,128 101.8% - 101.8% 2002 $1,218,823 $1,409,828 115.7% - 115.7% 2003 $1,432,528 $1,437,908 100.4% - 100.4% 2004 $1,724,861 $1,767,764 102.5% - 102.5% 2005 $2,282,092 $2,119,641 92.9% - 92.9% Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding supplemental property taxes. Source: City of La Quinta and County of Riverside 146 TABLE 4 CITY OF LA QUINTA Schedule of Net Taxable Value Last Ten Fiscal Years Fiscal Year Assessed Less Less Net Ending Secured Unsecured Property Property Homeowner's Taxable June 30 Propeqy Pro e Value Exemptions Exemptions Value 1996 2,043,276,054 23,801,872 2,067,077,926 6,936,774 22,399,068 2,037,742,084 1997 2,164,204,951 22,511,720 2,186,716,671 6,919,376 22,407,418 2,157,389,877 1998 2,305,593,987 18,844,880 2,324,438,867 9,676,787 24,877,018 2,289,885,062 1999 2,674,887,437 18,756,736 2,693,644,173 10,998,340 27,581,722 2,655,064,111 2000 2,665,520,656 18,712,736 2,684,233,392 11,655,584 28,259,200 2,644,318,608 2001 3,162,945,116 30,599,753 3,193,544,869 19,757,668 30,391,400 3,143,395,801 2002 3,789,678,041 32,607,713 3,822,285,754 20,732,503 33,993,800 3,767,559,451 2003 5,412,382,710 40,940,877 5,453,323,587 50,878,475 44,541,600 5,357,903,512 2004 6,289,493,552 44,014,548 6,333,508,100 67,025,403 46,011,600 6,220,471,097 2005 7,856,383,375 72,554,357 7,928,937,732 66,951,088 48,120,058 7,813,866,586 Source: County of Riverside 147 CITY OF LA QUINTA Property Tax Rates - Direct and Overlapping Governments Last Five Fiscal Years (per $100 of Assessed Value) General County of Riverside Riverside County Office of Education Desert Sands Unified Coachella Valley Unified School District Coachella Valley Water District Coachella Valley Recreation & Park District Desert Comm College District Total Tax Rate 2004/05 2003/04 2002/03 1.00000 1.00000 1.00000 0.00905 0.00905 0.00938 0.01013 0.00905 0.00938 0.20216 0.27443 0.46088 0.17094 0.09267 0.06845 0.55329 0.55458 0.62057 0.08819 0.07762 0.07856 0.04948 - - 2001 /02 1.00000 0.00985 0.00985 0.35177 0.05022 0.56885 TABLE 5 2000/01 1.00000 0.09750 0.02080 2.08324 2.01740 2.24722 1.99054 1.11830 Source: California Municipal Statistics, Inc 148 TABLE 6 CITY OF LA QUINTA Special Assessment Billings and Collections Last Ten Fiscal Years Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billings Collections (1) to Billings 1996 729,647 699,351 95.9% 1997 791,012 757,256 95.7% 1998 791,012 761,109 96.2% 1999 790,532 770,164 97.4% 2000 833,630 800,825 96.0% 2001 835,577 803,756 96.2% 2002 1,068,994 992,226 92.8% 2003 860,684 790,555 91.9% 2004 871,833 804,818 92.3% 2005 457,277 413,679 90.5% (1) Includes Prepayments and Foreclosures Source: Muni Financial Services 149 CITY OF LA QUINTA Schedule of Direct and Overlapping Bonded Debt June 30, 2005 Direct and Overlapping Bonded Debt Riverside County General Fund Obligations Riverside County Board of Education Certificates of Participation Desert Sands Unified School District Certificates of Participation Desert Sands Unified School District Lease Tax Obligation Desert Sands Unified School District Community Facilities No.1 Desert Sands Unified School District Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation Coachella Valley County Water District, I.D. #55 Coachella Valley County Water District, I.D. #58 Coachella Valley Unified School District Certificates of Participation Coachella Valley Unified School District Coachella Valley Water District, AD No. 68 Coachella Valley Recreation and Park District Certificates of Participation City of La Quinta General Fund Obligations (Finance Authority) City of La Quinta 1915 Act Bonds Desert Community College District Total Direct and Overlapping Bonded Debt Note: (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue, tax allocation bonds and nonbonded capital lease obligations. Source: California Municipal Statistics, Inc. TABLE 7 Percent June 30, 2005 Applicable Bonded Debt 1.013% $6,294,271 1.013% 123,738 7.720 1,139,858 7.720 1,726,578 100.000 2,105,000 7.720 10,574,084 7.286 694,356 75.236 4,909,149 5.449 193,712 17.094 3,135,894 17.094 3,027,224 86.247 2,108,739 8.819 235,026 100.000 6,575,000 100.000 2,720,000 4.948 3,482,248 $49,044,877 (1) 150 CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 2005 Net Assessed Valuation Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin $7,813,866,586 1,172,079,988 -0- $1,172,079,988 TABLE 8 Notes: Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quinta has no general bonded indebtedness. Source: City of La Quinta 151 TABLE 9 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Ten Fiscal Years Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1996 696,402 160,000 536,402 696,402 1.00 1997 607,950 170,000 437,950 607,950 1.00 1998 734,623 285,000 449,623 734,623 1.00 1999 684,573 245,000 439,573 684,573 1.00 2000 679,670 250,000 429,670 679,670 1.00 2001 678,955 260,000 418,955 678,955 1.00 2002 682,178 275,000 407,178 682,178 1.00 2003 679,435 285,000 394,435 679,435 1.00 2004 680,830 300,000 380,830 680,830 1.00 2005 681,220 315,000 366,220 681,220 1.00 Note: Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. Source: City of La Quinta 152 TABLE 10 CITY OF LA QUINTA Demographic Statistics Last Ten Fiscal Years Total City Fiscal Year Population Riverside Population Ending Square Percent County Percent June 30 Miles (1) Population (2) Change Population (3) Of County 1996 31.2 18,050 2.6% 1,381,879 1.3% 1997 31.2 18,931 4.9% 1,379,956 1.4% 1998 31.2 20,444 8.0% 1,441,237 1.4% 1999 31.2 21,763 6.5% 1,473,307 2.2% 2000 31.2 24,240 10.77% 1,522,900 1.6% 2001 31.2 26,321 8.58% 1,545,387 1.7% 2002 31.8 28,715 9.09% 1,545,387 1.9% 2003 34.8 30,452 6.00% 1,653,564 1.8% 2004 35.1 32,522 6.80% 1,782,650 1.8% 2005 35.1 36,145 9.20% 1,871,950 1.9% Source: (1) City of La Quinta (2) State of California Department of Finance (3) Population Division, U.S. Census Bureau 153 Fiscal Year Ending June 30 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 (1) Source: CITY OF LA QUINTA Property Value and Construction Activity Last Ten Fiscal Years Property Value 1 2,043,276,054 2,164,204,951 2,305,593,987 2,674,887,437 2,665,520,656 3,162,945,116 3,789,678,041 5,412,382,710 6,289,493,552 7,856,383,375 Commercial Construction Units Value 8 1,018,940 11 1,876,747 14 2,689,642 19 8,894,767 40 13,071,684 39 15,289,134 66 6,739,720 69 27,184,625 154 38,232,129 120 26,262,862 From Schedule of Net Taxable Value City of La Quinta TABLE 11 Residential Construction Units Value 336 53,973,239 322 36,971,047 461 70,403,691 770 132,521,054 1,590 292,524,629 1,069 195,774,186 858 171,189,651 831 176,514,682 1,406 244,446,101 1,838 311,189,301 154 TABLE 12 CITY OF LA QUINTA Principal Taxpayers June 30, 2005 Taxpayer Type of Activity KSL Desert Resort Inc Commercial/Hotel/Vacant Land Toll California Vacant Land Sunrise Desert Partners Condominiums/Vacant Land TD Desert Development Residential ND La Quinta Partners Vacant Land Lennar Homes of California Inc Vacant Land Coral Mountain Vacant Land Quarry Ranch At La Quinta Inc Vacant Land Aventine Development Residential CRV La Quinta 70 Ltd Partnership Vacant Land Source: City of La Quinta is5 CITY OF LA QUINTA Major Employers June 30, 2005 Employer La Quinta Hotel and Golf Resort PGA West Desert Sands Unified School District Wal-Mart Rancho La Quints The Home Depot Lowe's Home Improvement Stater Brothers Imperial Irrigation District Vons Ralph's Tradition City of La Quinta Cliff House Source: City of La Quints Employees 1,500 1,100 550 250 200 180 150 126 110 103 100 97 78 75 TABLE 13 Actiyity Resort Hotel Golf Resort School District Administration Retailer Golf Resort Retailer Retailer Groceries Utility Company Groceries Groceries Golf Resort Municipal Government Restaurant 156 Company Name Policy Number Hartford PEBA07068 Lexington 062-3314 Landmark Amer K2HQ407478 California Certificate #5 Joint Powers Insurace Authority California Certificate Joint Powers #5009-056 Insurance Authority Source: City of La Quinta CITY OF LA QUINTA Schedule of Insurance in Force June 30, 2005 Coverage Employee Dishonesty, Forgery, Computer Fraud All Risk Property Insurance Including Auto Physical Damage (Excluding Earthquake) Earthquake & Flood Real & Personal Property Including Contigent Tax Interruption Comprehensive General Liability Worker's Compensation TABLE 14 Limits Term Premium $1,000,000 12/03/04 - 05 $3,000 32,600,000 07/01/05 - 06 30,000 7,500,000 02/07/05 - 06 29,500 $0 Deductible Retention 07/01/05 - 06 253,672 $50 Million 5,000,000 07/01/05 - 06 235,397 157 TABLE 15 CITY OF LA QUINTA Miscellaneous Statistical Data June 30, 2005 Date of Incorporation ................................May 2, 1982 Type of City ................................ Charter City Form of Government ...........................Council./ Manager City Employees .................................. 83 City Land Area (square miles) .................................... 35.1 Population .................................. 36,145 Number of Parks .................................. 12 Total Acreage .................................. 234 Miles of Streets .................................. 118.0 Miles of Bike Paths .................................. 9.7 Number of Major Intersections .................................. 46 Number of Traffic Signals and Safety Lighting ....................... 43 Number of Traffic Signs .................................. 2,749 Number of Street Lights .................................. 73 Public Schools .................................. 4 Private Schools .................................. 1 Churches 3 Banks/Savings and Loan .................................. 7 Number of Single Family Units - Detached .......................... 14,393 Number of Single Family Units - Attached .......................... 2,360 Number of Multiple Family Units ................................ 1,352 Number of Mobile Homes .................................. 259 Source: City of La Quinta 158 TABLE 16 CITY OF LA QUINTA General Fund Balance Trends Last Ten Fiscal Years Fiscal Year Ending Reserved Unreserved Totals June 30 Designated Undesiaiated 1996 6,680,048 5,686,027 -- 12,366,075 1997 8,202,641 5,936,591 -- 14,139,232 1998 8,915,742 8,568,017 -- 17,483,759 1999 8,879,558 14,439,999 -- 23,319,556 2000 10,565,563 18,111,835 -- 28,677,398 2001 11,746,211 23,878,259 - 35,624,470 2002 15,351,251 25,522,073 -- 40,873,324 2003 21,099,910 26,584,773 -- 47,684,683 2004 29,210,757 25,494,479 -- 54,705,236 2005 32,412,590 31,514,377 -- 63,926,967 Source: City of La Quinta 159 (This page intentionally left blank) 160 INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: Janaury 11, 2006 ITEM TITI F- Transmittal of Treasury Report for November 30, 2005 BACKGROUND: Attached please find the Treasury Report November 30, 2005 RECOMMENDATION: Review, Receive and File the Treasury Report for November 30, 2005 John M. Falconer, Finance Director MEMORANDUM TO: La Quinta City Council FROM: John M Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for November 30, 2005 DATE: December 29, 2005 Attached is the Treasurer's Report for the month ending November 30, 2005, The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Beginning Purchased Notes Sold/Matured Other Ending Change Cash (3) $ 3,420,223 (1) $ (3,358,877) $61,346 ($3,358,877) LAW 39,009,320 3,300,000 (22,750,000) 19,559,320 (19,450,000) US Treasuries (2) 107,199,131 25,000,000 (2) (5,000,000) (277,578) 126,921,553 19,722,422 US Gov't Sponsored Enterprises (2) 28,530,146 5,000,000 (2) (2,500,000) (55,865) 30,974,281 2,444,135 Commercial Paper (2) 0 0 0 0 Corporate Notes Mutual Funds 7,686,506 20,307 1 7,706,813 20,307 Total $ 185,845,326 1 $ 33,320,307 1 8,877 $ 333,443 $ 185,223,313 $ 622,013 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. Date John M. Falconer WFinance Director/Treasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the month on US Treasury, Commercial Paper and Agency investments. (3) The cash account may reflect a negative balance. 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S. Treasury No[e ��. 4,961,774 Bank of New York Demand Yes U.S Treasury Note 5, 000.877 of New York Demand Yes - U S Treasury Note_ _- 4.979,184 _Bank Total U.S. Treasury 52 329,521 U S Government Sponsored Enterprises i Amortized C Jstod a Availability Surplus Issuer/Type Value Bankn(NewY rk-Demand Yes FHLB 4,960,601 Bank of Ne Yr k - Dernartd Y,s FARM CREDIT 1,999,710 Bank of New York- Demand Yes FHLB 1, 999680 Bank of New York- Demand Yes FHLB-Discount 1.994.462 Barik ¢i New York - Dernartd Yes FHL Mortgage I 7519.525 Bank of New York - Demand Yes FNMA 5.024,235 Bank of New York Fernand Yes FHL Mortgage 2,522 332 Bank of Now Yo k - Demand t Yes FARM CREDIT _ 4, 953 736 t To121-U.S G."", ent Securities 30, 074.281 Local Agency Investment Fund Name A a lability Surplus Type _ Book LAIF - City Demand Yes State Pool 15,891,583 IF - RDA - Demand Yes I State Pool 3, 667, 737_ _ _LA Total - State Pool r 19559320 Surplus Surplu' Surplus Surplus All Funtls Surplus Ves Ach Yes No Ali No Actual % Yes S $ $ 12,810 $ 1 768 755 $ 1,781.565 i - 1,000 '�, 1,000 17,536 I 47 536 - - _.. _ f - $ 47.536 $ $ 47.536 S 13 810 S 1.768,755 $ 1 782,565 0.0331 % 0-0259 Surplus Surplus Ves Atli Yes 8.850,987 8,850.987 9.814,718 9.814.718 4, 899.614 4, 899, 614 9, 824.657 9-824.657 3.997.710 3.997.710 4.9(i1.774 4.911.771 5 000.877 5.000.877 4 979,184 4,979, 184 - 52 329,521 52.329.521 Surplus Surplus No. Adz No All Funds Surplus Actual %j Ves 28 2I11 Is 28 5267%, Surplus Surplus i Surplus All Funds Surplus Surplus Yes All Yes No All No _- -- - Actual % Yes 4960,6011I 4.960,601 1 999710 1 1 999,710 - - 1.999 680 1 999.680 - 1994 462 1, 994.462 7 519.525 5.024,235 7 510 525 5, 024.235 2.522.332 - - - - 2.522.332 4 953.7" - _.__. 311914 .281 4.953.736 - _.. 30974.281 - - Ir 727% i 885�/, - - 1E _ 2 Surplus Surplus Surplus Surplus All Funds Surpiris Yes Ad) Yes No - - All No -- - ( Actual % Yes 15,891,583 it 76B, 755) 14122, 82B 3.667.737 3,667, 737 - 19559.320 (1.768.755) 17.790,565 - 10.5599% 9.6983" Total City Investments 102,863,122 102,863,122 (1,768,755) 101,094,367 55.5347% 55.1101 Total City Cash & Investments 102924,468 102,910,658 (1,768,755) 101,141,903 13810 1768755 1,782,565 55.5678% 55.1360°r_� I Fiscal Agent Investments Portfolio - Clty Investments Amortized Surplus Surplus Surplus Surplus All Funtls I Surplus 200rotoci S. Bank CIP P ry Value Yes Adj Yes No All _ _ No Astral io Yos Custotl an Availability Sur lus Issuer/T e -- - 2 RDA Ves U.S Treasury Sri 8,979 569 9 979.569 j - - 9,979,569 - � - 2004 Finance Authority GIP Yes I U. STreasury Note 29,911 041 29 911.041 21,911.041 - 2004 Finance Authority -DIP Yes U. S.Treasury Bill 9,886.369 9.886.369 9,886.369 2004 Finance Authority CIP Yes U.S Treas�Note �. 24,815.053 24,815.053 24,815.053 _ _ - - _ _.._ - -- - -- - - - - - --- - 40 2714°0 40 6627 % Total U S Treasury 74.592,032 74,592,032 74,592 032 - - - -. Portfolio- Mulual Fiends Money Market Book Trustee Availability Surplus Mutual Fund Value Civic Center U 5. Bank Project YE 1st American Civic Center U.S Bank - Debt Svc YES, 1st American 176 1994 RDA U S. Bank -Debt Svc YES 1st American 1995 RDA U. S. Bank CIP YES 1st Amencan - 1995 RDA U S. Bank - Special Fund YES 1st American - 2004 Fin Auth- 1995 US Bank- Escrow YES 1st American 1998 RDA U. S. Bank- CIP YES 1st American 1998 RDA U. S. Bank - Net Svc YES 1st Amencan 1998 RDA U. S. Bank- Special Fund YES 1st Amencan - 1998RDA U.S.Bank-CIP YES 1st American - 2001 RDA U S. Bank - Dbt SVC YES 1st American - 2001 RDA U.S. Bank - CIP YES 1st American 2002 RDA U S. Bank - Not Svc YES 1st American - 2002 RDA U.S. Bank CIP YES 1st Amencan 3, 944.795 2003 Taxarid RDA U 5. Bank- DS YES 1st American 2003 Taxable RDA U. S. Bank -COI YES 15t American - 2003 Taxable RDA U. S Bank-CIP YES 1st American - 2004 Fin Arrm US Bank - CIP YES 1st American 3.761.842 2004 Fin Ar1m US Bank COI YES 1st Amencan - - - - - ---7706813 All Funds Surplr Actt Yes 4 1608°'a 4 2013 Subtotal- Mutual Rind Total Fiscal Agent Investments Grand Total Surplus surplus Yes Ad) Yes 176 17f 3.944 795 3,944 795 3.761.842 3,761.842 7 706, 813 7, 70C 813 Surplus Surplus No Adj No 82,298,845 82,298,845 82,298,845 44.4322% 44.8640% 185,223,313 185,209,503 (1,768,755) 183,440,748 13,810 1,768,755 1,782,565 100.0000% 160.0000°/1 m o o a0 mCl of M N M 10 00 00 7 O N M m r d 0 0 M N c0 O N O m - O A N 00 _ w O N r M u9 M O M m r O r O p O N mM Mnjo i� N N L7 O C) M O I� cD In m V Co M O V 0 m V O V o 0 V 7 N N _ 0 O O r M W N N � N Q O M N r 0 m m M fD p N M ap O p a O M O N� M N O O N 7 O f� o. ItN U _ V tD lD N@ r 7 c0 O) CO V M O N O S V m O) O Q1 N N N _ O LL N to .. !�G) O r O V O O m` O W IDVi CT N m IM O _ W O O m 0 0 tD r �vj r LL LL � r O N N of N O M m U@ V M m cD O W O N M 7 N M N W O N O Q1 O@ M 7 in m M N N I � v N M M m 0 0 o� � O) N -s O O m N M m C V W U N N O N � e- M m V M V m M � m� m A � M r m N W M O ci p m� M M M N Cor' � W O O N M N M a O N 0 NC-) a v_ r LO M L N of M r O T O N N QI QM N N m O O O "t um'1 r m N m IA d E L VI I o > c r � � c � A u C E X N N U @ - C @ U m x m Q pj N u- m U VI Fm a g C .'_' m C U U C E C Q D) @ H O X N LL U N Y K{ a ` d O. C N N V O1 C D C T C@ X 0 (n X 11J > L fj C O N N > �q N N K R m @ U o @ @ L > y L c m z i m a�u) w W()G O0uC) z U w a �7 N O N �N 1 NCD O M O � � V N M M O O (D O N O I O N M M � lf] (D M M T � N E o 0 o C M C o -g o o N o o�O8�2 o N M N M N O —0—0 a o 0 0 0 0 0 0 0 0 M (p r O W V '1 0 0 M O @ O o 0 0 0 0 (p M C O O @ a0 !� M t• of 0 0 0 0 0 @ m O m O N (O M O r N N 0 0 0 0 \ @ 0 0 (D (O (D M N (D m (O r M N N N M N O N N IO M V M (0 'C 0 0 0 0 ° C t` m m O M `t O O co m M'0 C (O (O Cl) '7 — o 0 0 0 0 ` 00 N co 1� N (D = o 0 0 0 (O O (O N m l0 l0 O 0) f� co .0 \ (D O M m O (D m r- LO f` N f` N N N N M N co Q (O V (O M (O L o o L o 0 o L o o -0 L o o o 0O m (D L 8R o �o o 0 @ @ (D V o] M @ (O t0 @ N (O m M.0 N N N l0 V (O V (O O d \\ V N\ O N (O _ O O L m m V O (O O M (D LL� m (`7 O O (D r- LL QI M p 0 LL N N W M N N N N N O (Np M 0 LL` O m LL O N N m o7 N N LL (D (O (D V (D (D O O O O N M O (O N (O C (�O M LO O N M C W (D N M (D m w N O N .- M C O O O M -@j to (D(O (D @ N N N N N O .-@-� N O �- o o V o 0 o r N\ o o o y M 0 0 I� e o -0o N (7 O V (0 C (O 0 0 000 0 N (D 00 a M M r M N N N O (00 tD Q (D 07 m r. � O N O CO N M C) 00 V M of C N 0� m � (D (O 'D N O M '- O .- O N—— N N r' N M > o o o O M o o o > M M M M (� > o N l W a0 M W >\ \ o m o O N O N m p 0 > (O O m m N M O (D (O > (D 0 0 N V O N (O 7 N V M O Z O u0 (D O M (� 10 10 � m (D O 0) 7 p Z a p O O � M O m f` Z � to M O O N A co Z N� Z O r V m Z S M M M� � O � U 0 0 0 \ o o \ N O V m V N V 0 0 0 ° U r' O N m o o- o 0 U O w (O 0) N 0 0 0 0 V V O r �- (� O N N o o- o N o U M O m M p N Q V N M M N M V (O (O (LO M M M M co m O n. r- 0 � co (m0 V' M O � '- O '- � �� 0- 09 (O C N .-- N �� N O V N M N M N (D co (D (D (D "' o 0 0 0 r m r M (0 o O "' o 0 0 0 0 0 m V .. o o (p (D O N m 0 O 0 M O N m M m N O N m M� N O M (D O � M N M N N O V N r r M O t` r O (D m r N N O a0 (0 V N (D � (O N N M M M C N (D (D (D (D (D U) M M M M C O N N\\ o\ o J o N N o o J \ \ p M N o J lD I� (� v (`I m N o 0 0 o J O O m O N o 0 0 o N o J M N N N m o n (O to r (D a M 0 10 m N m M (O (O J M M (0 J (mD J r O J (D 0 0 o a o 0O Or0 Mo O O Op o o er o pNN r M N C 7VMM O , (DNOp(D 00 ((D r 0 0 0N r Nn a coM"t (D (D D (D -Jj N M N M M O O N VJ NE NE .4 « 4 4 C N CC aim NN NN cN E C C EE C C OO EE E E E E EA N N n N w y m N > N N N C N°oE L C N°mE >> C L C a) >> c c C N C N C C N Q) y C N C C to L C y N U U w V mN Q— �jQN UQ� UQ� m Q> c O Q N -ac N (d O N <U > N@ C N O=_@ @ C« p N Ll IL Q d' 0 0 m a -IL Q w 0— 11 a- Q d' O y= @ LL LL Q of LL LL Q LY N 0-LL Q d' _ w O O O 0 0 0— T m@ O O O m j, 0 0 0— N N N m@ O O m T N In N @ CO T N (A to @ C O p N fA N m @ m m O) N N m m m j a N N N @ m m m j m m m N @EN EEE01 mmm@m mmm�� mmmm'S mmm�� mmmD @@@ d J W W W m 2 W W W @ W W W @ W W W ��~ @ D W W W ��~� O W W W CO @t2 O CJ C J @ 'O N N N C Ql @ 0 N D L N .y C @ ��~ 2 .(�` .y .N C 4 @ N N« w .ti .(�` .y C N @ N N a) .ti .(�` .y C N (0 N N .(�` .(_�` .(y C N to O O `O E .(�` o>> @ .ti > jco o j 76 7 0 N u > j 2 > j 2 C C C N N >> j jo C C C N > �_` N_ C C C N— X J C C C N— C C C X> Q _ C C C%> a Q Q Q(nQa C C C X> Q Q Q Q(nQ J C C C X> Q QQQ(nQ J C C C .�( > Q Q Q Q(nQ J 0=Z Q Q Q (nQ Q Q Q0) Q J 10 0 z 0. w C) 0 ly c W < LU LY 03 LL =, <IL N < E > LO = 1 CD Cc) C) CN To CIO cc:, T z 11, 0LL, 4 4. 0 0, 2, LO C) C) CD CN 0 0 0 0 0 0 80- CD 0 C) 0 LO 0 CD LO 0 C) 0 LO 0 C) LI? Lf? C) cli cweojad 1-: C) CIO 11 INVESTMENT ADVISORY BOARD Meeting Date: January 11, 2006 ITEM TITLE: City of La Quinta Fiscal Year 2004-05 Audited Financial Statement BACKGROUND: Correspondence & Written Material Item A Mr. Mike Harrison, Audit partner with Mayer Hoffman McCann P.C. will review the City Cash and Investments presented in the report and answer Board Members questions. RECOMMENDATION: Information item only. John M. Falconer, Finance Director INVESTMENT ADVISORY BOARD Meeting Date: Janaury 11, 2006 TITI F- Month End Cash Report for December 2005 and Other selected Financial Data BACKGROUND: Correspondence & Written Material Item B This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances, but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. Y ^. �.. 1'J u�' S.,.- John M. Falconer, Finance Director CD m CO C N W V W 7 p I� O N O O O- 2 r M r N 0 0 0 0 o� r 0 0 p cD O O CD CD CD M O r co V O V O V O r 00 M N O N O� M -ITc.0 M CO io CO N M O M O M 6) M H O M O O cp M In N r V W V V r I I Lo V N O O to CDO N V V M r N N M CO O CD N O O to N' M C O N 0 0 0 0 0 D) I' -co) O O M p O O O ICJ 1� N O O r N V M V M CO V to N M r N M O M m M �vj 4) Q) I� CO O OJ 00 N O W N� N V V V V — M .0M O O O d1 O O O O O Q LL O M co M cfl co M o o O o O o V O N �❑ Q E r r r co io V O O CO N I c0 O M cO O M c0 O M O O �- O M C LLco O p M O CDO M M O O p r M mo O O W Q J O o `T n co or co�Uv O CDC co V M m N LO LO O r N r Lq N O i0 O N O7 M p O O N N O O Ln R > M N N M N @ r r r r .0 LL y M M co M M D N O V V co V M M M M O CO M O c0 C2 C) O O) C O r N O N O r 0 r r (6 LL y 6j r ID�0 0 0 to p C W to N — L CO Np CD N M O - O to Lo O r V M M ID j U O m O o W r O N N cp V >> M In N @ O U N N r N @ O 0 0 0 p O U N rn Q N N O m 0 N N C N r r Cj a c0 U N U @ � CD N T 0 0 D D r a)It U C N m N C m C m'� �YY� U U U CO m N c .. �u C m m a.�o a a m ALL om ❑ m m O E E U O� F-- U U m T :.-. C LL -O m m 7 n m m 7 L E 7 O m 0 T O) n > U L o N N ❑ O) — �6 O m @ Q O O m cn ❑ U F- J>> C W -6 LL Q a Q ... C C N j J N U O N �p m m n m 7 W Q cn O Z❑ -> LL iE Q -� Q W o N U M O 7 N O m N N CDLo N O � � N Ul � � N C V O @ v v 3 u M M N N V O N OJ U C � L O N (n L @ p � U O _T O V O U r m m N V O n �O Q m G N N E o T in m w m C C O a N � N w N O O Y O o C r N N O V V N � Q Y N T O o m = N N aO L w , n � 7 m � L N N U m L C CIL O m U O n.0 n E m LL C N Co L V O L@ r >, K O — L N O U rL. 7 E O N O O n m N � N ~ N N cc E N 7 L > C _m C, O U a E @ N In C C p m C O 5 0 c C o O N a C a a N U a m .N 0 m m N p❑ O O E O - a a in U C C N O m m N N > N O L C L L LL LL H LL h F C m 2 Phil Angelides, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund LAIF) PMIA Performance Report Date - Daily`,`- Yielit": " Quarterto.' Date Yield Average - Maturity in days 12/14/2005 3.77 3.58 206 12/15/2005 3.80 3.58 203 12/16/2005 3.81 3.59 202 12/17/2005 3.81 3.59 202 12/18/2005 3.81 3.59 202 12/19/2005 3.82 3.60 199 12/20/2005 3.82 3.60 197 12/21/2005 3.84 3.60 195 12/22/2005 3.85 3.61 192 12/23/2005 3.87 3.61 198 12/24/2005 3.87 3.62 198 12/25/2005 3.87 3.62 198 12/26/20051 3.87 1 3.62 1 198 12/27/2005 3.87 1 3.62 1 194 Corporate Bi 1.76% Commercial Paper 14.21% Time Der 13.82 LAIF Performance Report Quarter Ending 9/30/05 Apportionment Rate: 3.18% Earnings Ratio: .00008712246785713 Fair Value Factor: .99708304 PMIA Average Monthly Effective Yields November 2005 3.636% October 2005 3.458% September 2005 3.324% Pooled Money Investment Account Portfolio Composition $54.8 Billion 11 /30/05 Treasuries Loans 6.40% Mortgages I ^0o CDs/BNs 22.77% Agencies 26.19% 3 FRB:Commercial Paper Rates and Outstandings Page 1 of Federal Reserve Release Coin,'%imercial Paper —1 Release I About I Outstandings I Historicaldiscount rates I Hi_s_to_rical outstandings Data as of December 30, 2005 Commercial Paper Rates and Outstandings Derived from data supplied by The Depository Trust Company Posted January 3, 2006 ni%ennnt rate% i Term AA financial AA nonfinancial A2/P2 nonfinancial 1-day 4.17 4.16 4.26 1=7-day 4.18 4.22 4.20 15-day 4.29 4.22 4.38 4.23 4.24 4.40 I30-day I fi0-day 4.35 ND 4.54 =90-day [:4EI ND 4.47 ?rade data insufficient to support calculation of the 60-day AA nonfinancial and 90-day AA nonfinancial rate(s) for December 3U, 2UUS . Yield curve Mon °y market basis _— Financial ------ rA21 2 r �+ I 7 15 30 Days to Matti ity ZE Percent 90 4.1 4,5 4,3 4.1 4 http://www.federalreserve.gov/Releases/CP/ 1 /3/200 FRB:Commercial Paper Rates and Outstandings Page 2 of Discount rate spread Basis I?tJiws I20 100 80 60 40 20 2M 1 2002 2M3 2004 2M5 Discount rate history Percent 4 3 1 0 2M I 2M2 2003 2f1 4 2t1115 Outstandings Weekly (Wednesday), seasonally adjusted http://www.federalreserve.gov/Releases/CP/ 5 1 /3/200 FRB:Commercial Paper Rates and Outstandings Page 3 of 1540 1510 1480 t450 1420 1390 1360 1330 1300 1270 1240 11() 1180 1150 13illiow, of dollars Billioris of dollars 290 a It 1 4r 1 i r'uiad� yV 2(X) I 2(X)2 2003 2(i1)4 2(X)5 250 210 170 130 90 The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Resery makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve is closed on a business day, yields for the previous business day will appear in the historical discount rates table. 'I his policy is subject to change at any time without notice. Commercial paper outstanding Commercial paper outstanding, miscellaneous categories Volume Statistics 2005 Q4 Release I About I Outstandin rs I Historical discount rates I Historical outstandin 1s Home I Statistical releases Accessibility) Contact Us Last update: January 3, 2006 6 http:1/www.federalreserve.gov/Releases/CP/ 1 /3/200 Bureau of the Public Debt : Recent Treasury Bill Auction Results Page I of Recent Treasury Bill Auction Results Issue Maturity Discount Investment Term Date Date Rate % Rate °/, 91-DAY 01-05-2006 04-06-2006 182-DAY 01-05-2006 07-06-2006 14-DAY 01-03-2006 01-17-2006 28-DAY 12-29-2005 01-26-2006 91-DAY 12-29-2005 03-30-2006 182-DAY 12-29-2005 06-29-2006 28-DAY 12-22-2005 01-19-2006 91-DAY 12-22-2005 03-23-2006 182-DAY 12-22-2005 06-22-2006 28-DAY 12-15-2005 01-12-2006 91-DAY 12-15-2005 03-16-2006 182-DAY 12-15-2005 06-15-2006 7-DAY 12-08-2005 12-15-2005 28-DAY 12-08-2005 01-05-2006 91-DAY 12-08-2005 03-09-2006 182-DAY 12-08-2005 06-08-2006 13-DAY 12-02-2005 12-15-2005 14-DAY 12-01-2005 12-15-2005 28-DAY 12-01-2005 12-29-2005 91-DAY 12-01-2005 03-02-2006 182-DAY 12-01-2005 06-01-2006 27-DAY 11-25-2005 12-22-2005 90-DAY 11-25-2005 02-23-2006 181-DAY 11-25-2005 05-25-2006 28-DAY 11-17-2005 12-15-2005 91-DAY 11-17-2005 02-16-2006 182-DAY 11-17-2005 05-18-2006 28-DAY 11-10-2005 12-08-2005 91-DAY 11-10-2005 02-09-2006 182-DAY 11-10-2005 05-11-2006 1-DAY 11-09-2005 11-10-2005 28-DAY 11-03-2005 12-01-2005 91-DAY 11-03-2005 02-02-2006 182-DAY 11-03-2005 05-04-2006 29-DAY 10-27-2005 11-25-2005 91-DAY 10-27-2005 01-26-2006 182-DAY 10-27-2005 04-27-2006 28-DAY 10-20-2005 11-17-2005 4.070 4.265 4.100 3.470 3.905 4.200 3.495 3.895 4.220 3.570 3.820 4.180 4.080 3.750 3.930 4.185 3.960 3.980 3.920 3.900 4.155 3.875 3.940 4.155 3.930 3.910 4.195 3.820 3.870 4.155 3.850 3.725 3.890 4.125 3.635 3.850 4.065 3.520 4.169 4.420 4.164 3.528 3.999 4.351 3.553 3.988 4.372 3.630 3.911 4.330 4.140 3.813 4.025 4.335 4.021 4.042 3.987 3.994 4.303 3.940 4.034 4.303 3.997 4.004 4.345 3.885 3.963 4.303 3.904 3.788 3.983 4.271 3.696 Price Per CUSIP $100 99.971194 912795WW7 97.843806 912795XK2 99.840556 912795TR2 99.730111 912795WL1 99.012903 912795WV9 97.876667 912795XJ5 99.728167 912795WK3 99.015431 912795WU1 97.866556 912795XH9 99.722333 912795WJ6 99.034389 912795WT4 97.886778 912795XG1 99.920667 912795WE7 99.708333 912795WHO 99.006583 912795WS6 97.884250 912795XF3 99.857000 912795WE7 99,845222 912795WE7 99.695111 912795 WG2 99.014167 912795 WR8 97.899417 912795XE6 99.709375 912795WF4 99.015000 912795WQO 97.910958 912795XD8 99.694333 912795WE7 99.011639 912795WP2 97.879194 912795XCO 99.702889 912795WD9 99.021750 912795WN7 97.899417 912795XB2 99.989306 912795VZ1 99.710278 912795WC1 99,016694 912795 WM9 97.914583 912795XA4 99.707181 912795 WB3 3.942 99.026806 912795WLI 4.208 97.944917 912795WZO 3.579 99.726222 912795WA5 7 bttp://wwws.publlcdebt.treas.gov/AI/OFBills 1 /3/200 Bureau of the Public Debt : Recent Treasury Bill Auction Results Page 2 of 91-DAY 10-20-2005 01-19-2006 3.785 3.875 99.043236 912795WK3 182-DAY 10-20-2005 04-20-2006 4.015 4.155 97.970194 912795WY3 Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method. Return to -Auction Information _Page Privacy & Security_Notices I Terms & C_onditions I Accessibility I Data Quality Last Updated January 3, 2006 4:21:04 PM EST 8 http:/"wwws.publiedebt.treas.gov/AI/OFBills 1 /3/200 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 30, 2005 Page 1 of Federal Reserve Statistical Release 11,15 Selected Interest Fates (Daily) Release Date: December 30, 2005 Weekly release dates and announcements I Historical data I About Daily update Otherformats: Screen reader I ASCII The weekly release is posted on Monday. Daily updates of the weekly release are posted 1-rough Friday on this site. If Monday is a holiday, the weekly release will be posted ,[ter the holiday and the daily update will not be posted on that Tuesday. V'FDERAL RESERVE STATISTICAL RELEASE DAILY UPDATE: WEB RELEASE ONLY r'J,1('TED INTEREST RATES or use at 4:15 p.m. Eastern Time v I <-L<1� in percent per annum Instruments I_�ederal funds (effective) 1 2 3 `r,rnmercial Paper 3 4 5 Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month CI)c (secondary market) 3 6 1-month 3-month 6-month �urodollar deposits (London) 3 7 1-month 3-month 6-month a r Ic prime loan 2 3 8 !iiscount window primary credit 2 9 O.S. government securities Treasury bills (secondary market) 3 4 4-week 3-month 6-month Treasury constant maturities Nominal_ 10 1-month 3-month 6-month December 30, 2005 2005 2005 2005 2005 Dec Dec Dec Dec 26* 21 28 29 4.21 4.26 4.19 4.18 n.a. n.a. 4.26 n.a. n.a. n.a. n.a. n.a. n.a. 4.26 4.27 4.28 4.35 4.36 4.36 4.43 4.40 4.42 4.34 4.34 4.36 4.47 4.47 4.49 4.65 4.63 4.65 4.36 4.37 4.36 4.35 4.50 4.50 4.50 4.50 4.68 4.68 4.67 4.67 7.25 7.25 7.25 7.25 5.25 5.25 5.25 5.25 3.38 3.50 3.59 3.90 3.87 3.92 4.20 4.18 4.19 3.51 3.57 3.67 3.98 3.95 4.01 4.35 4.33 4.34 9 lattp://www.federalreserve.gov/Releases/H 15/update/ 1 /3/20C FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 30, 2005 Page 2 of 1-year 4.35 4.34 4.35 2-year 4.35 4.37 4.38 3-year 4.31 4.34 4.35 5-year 4.30 4.32 4.33 7-year 4.31 4.34 4.34 10-year 4.34 4.38 4.37 2.0-year 11 4.58 4.62 4.60 inflation indexed 12 5-year 2.05 2.09 2.07 7-year 2.04 2.09 2.06 10-year 2.05 2.10 2.07 20-year 2.01 2.05 2.04 Inflation -indexed long-term average 13 1.96 1.99 1.98 f ,' crest rate swaps 14 1-year 4.84 4.82 4.84 2-year 4.83 4.79 4.83 3-yeas 4.82 4.79 4.83 4-year 4.84 4.80 4.84 5-year 4.86 4.82 4.86 7-year 4.88 4.84 4.88 10-year 4.92 4.88 4.92 30-year 5.07 5.03 5.07 rporate bonds Moody's seasoned Aaa 15 5.21 5.25 n.a.** Baa 6.17 6.20 n.a." & local bonds 16 ,ItvenLional mortgages 17 Markets closed. ** The Moody's Aaa and Baa corporate bonds data for Thursday December 29, 2005 will on Tuesday January 3, 2006. n.a. Not available. footnotes 1. The daily effective federal funds rate is a weighted average of rates on brokered tr 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current we figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. on a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by _)epository Trust Company. The trades represent sales of commercial paper by dealers or issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are equiv 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page (www.federalreserve.gov/releases/cp/). 6. An average of dealer bid rates on nationally traded certificates of deposit. 7. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-cha c-ommercial banks. Prime is one of several base rates used by banks to price short-term I pans. 10 http://www.federalreserve.gov/Releases/H 15/update/ 1 /3/200 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 30, 2005 Page 3 of ). The rate charged for discounts made and advances extended under the Federal Reserve' credit discount window program, which became effective January 9, 2003. This rate repla djustment credit, which was discontinued after January 8, 2003. For further informatio www.federaireserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate repor for the Federal Reserve Bank of New York. Historical series for the rate on adjustment 4el l as the rate on primary credit are available at www.f_ederalreserve.gov/releases/hl5 10. Yields on actively traded non -inflation -indexed issues adjusted to constant maturit U.S. Treasury. 11. A factor for adjusting the daily nominal 20-year constant maturity in orcer to esti 30-year nominal rate can be found at v�-,,w.treas.gov/offices/domestic-finance/debt-managemerit/interest-rate/itcompositeindex.h 12. Yields on Treasury inflation protected securities (`PIPS) adjusted to constant matur ource: U.S. Treasury. Additional information on both nominal and inflation -indexed yie found at www.treas.gov/offices/domestic-finance/debt-mariagement/interest-rate/inciex.htm 13. Based on the unweighted average bid yields for all TIPS with remaining terms to mat .pore than 10 years. 4. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap rates for a Fixed Rate Paver in return for receiving three month LIBOR, and are based on rate ,t" 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Page ISD iSDAFIX is a registered service mark of ISDA. Source: Reuters Limited. Moody's Aaa rates through December 6, 2001 are averages of Aaa utility and Aaa indu rates. As of December 7, 2001, these rates are averages of Aaa industrial bor_ds only. 6. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday 17. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLM Note: Weekly and monthly figures on this release, as well as annual figures available o Board's historical 11.15 web site (see below), are averages of business days unless othe Current and historical H.15 data are available on the Federal Reserve Board's web site (www.tederaireserve.gov/). For information about individual copies or subscriptions, co Publications Services at the Federal. Reserve Board (phone 202-452-3244, fax 202-728-588 electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 20 Description of the Treasury Nominal and Inflation -Indexed Constant Maturity Series Yields on Treasury nominal securities at "constant maturity" are interpolated by the U. from the daily yield curve for non -inflation -indexed Treasury securities. This curve, w the yield on a security to its time to maturity, is based on the closing market bid yie actively traded Treasury securities in the over-the-counter market. These market yields calculated from composites of quotations obtained by the Federal Reserve Bank of New Yo constant maturity yield values are read from the yield curve at fixed maturities, curre and 6 months and 1, 2, 3, 5, 7, 10 and 20 years. This method provides a yield for a 10- maturity, for example, even if no outstanding security has exactly 10 years remaining t similarly, yields on inflation -indexed securities at "constant maturity" are interpolat iaily yield curve for Treasury inflation protected securities in the over-the-counter m 11 littp:/'/www.federalreserve.gov/Releases/H 15/update/ 1 /3/200 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --December 30, 2005 Page 4 of inflation -indexed constant maturity yields are read from this yield curve at fixed matu currently 5, -7, 10, and 20 years. Weekly release dates and announcements I Historical data I About Daily update Other formats: Screen reader I ASCII Statistical releases I Ionic I Economic research and data es; 1iility I Contact Us I asl update: December 30, 2005 12 http://www.federalreserve.gov/Releases/H15/update/ 1/3/200 a 0 U M (D E Q U O N N N O O Z O O m In O N O W tD N (D (D CD O m co In V In N Ln o) C Lr v m v O lI7 f� V V O O � O IDN V C t9 > _ v N N N N O � Z m 0 V M (n m N N CO N O) F In OD co Q m V O Ln m N N V N V O N M N D1 tf7 N N M V' � Z Q c U � U .0 Q Q �n n O M m O d V M V I- of M M (n m M N CO V N O O m D1 N In M I- r N LL7 07 O �' O to m N N 7 V C m 0 N M N O «J N N M V L V N N (0 Q> O Z N c U 0 Z 0 a f� OD O N 1- (D M In (,j W .--. 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RECOMMENDATION: Receive & File 1 17 John M. Falconer, Finance Director Phil Angelides October 2005 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT October 2005 TABLE OF CONTENTS SUMMARY................................................................. 01 SELECTED INVESTMENT DATA .................................... 02 PORTFOLIO COMPOSITION ........................................ 03 INVESTMENT TRANSACTIONS ..................................... 04 TIMEDEPOSITS........................................................ 19 BANK DEMAND DEPOSITS .......................................... 32 POOLED MONEY INVESTMENT BOARD DESIGNATION... 33 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF OCTOBER 2005 WITH OCTOBER 2004 (DOLLARS IN THOUSANDS) OCTOBER 2005 1 ER 2004 11 CHANGE Average Daily Portfolio $ 50,410,419 $ 51,789,742 $ -1,379,323 Accrued Earnings $ 148,061 $ 83,129 $ +64,932 Effective Yield 3.458 1.890 +1.568 Average Life -Month End (in Days) 177 189 -12 Total Security Transactions Amount $ 26,231,481 $ 21,612,852 $ +4,618,629 Number 546 454 +92 Total Time Deposit Transactions Amount $ 4,264,190 $ 3,470,690 $ +793,500 Number 155 146 +9 Average Workday Investment Activity $ 1,524,783 $ 1,254,177 $ +270,606 Prescribed Demand Account Balances For Services $ 311,591 $ 733,616 $ -422,025 For Uncollected Funds $ 148,521 $ 129,895 $ +18,626 1 PHIL ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) October 31, 2005 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 1,084,383 2.08 -1.13 Bonds Notes 3,223,693 6.20 +0.03 Strips Total Government $ 4,308,076 8.28 -1.10 Federal Agency Coupons $ 8,074,853 15.52 +1.13 Certificates of Deposit 10,605,114 20.39 -0.54 Bank Notes 1,350,000 2.59 0.00 Bankers' Acceptances 0 0.00 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 5,142,794 9.89 -1.01 Time Deposits 7,525,495 14.46 +0.15 GNMAs 264 0.00 0.00 Commercial Paper 6,272,713 12.06 -3.65 FHLMC/Remics 459,701 0.88 -0.04 Corporate Bonds 1,039,625 2.00 +0.04 AB 55 Loans 5,655,078 10.87 +1.77 GF Loans 1,788,200 3.44 +3.44 Reversed Repurchases (198,900) (0.38) +0.19 Total (All Types) $ 52,023,013 100.00 r INVESTMENT ACTIVITY Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month OCTOBER 2005 NUMBER AMOUNT 546 $ 26,231,481 80 652,591 155 4,264,190 781 $ 31,148,262 3.458 3.255 PA SEPTEMBER 2005 NUMBER AMOUNT 482 $ 23,181,408 60 756,388 148 2,105,500 690 $ 26,043,296 3.324 3.191 Pooled Money Investment Account Portfolio Composition $52.0 Billion Corporate Boi 2.00% Commercial Paper 12.06% Time Dep 14.46` 10/31 /05 Reverses Treasuries a Loans -0.38% 8.28 0 CDs/BNs 22.98% Agencies 25.41 % E EFFECTIVE YIELD 10/03/05 REDEMPTIONS CD WA MU, FA 3.310% 10/03/05 3.310 $50,000 133 $611,430.56 3.356 CD WA MU, FA 3.310% 10/03/05 3.310 50,000 133 611,430.56 3.356 CD HSBC 3.320% 10/03/05 3.320 50,000 133 613,277.78 3.366 CD HSBC 3.320% 10/03/05 3.320 50,000 133 613,277.78 3.366 CD HSBC 3.320% 10/03/05 3.320 50,000 133 613,277.78 3.366 CD ABN AMRO 3.310% 10/03/05 3.310 50,000 147 675,791.67 3.356 CD FORTIS 3.310% 10/03/05 3.310 50,000 147 675,791.67 3.356 CD FORTIS 3.310% 10/03/05 3.310 50,000 147 675,791.67 3.356 CD RB SCOT 3.250% 10/03/05 3.250 50,000 151 681,597.22 3.295 CD RB SCOT 3.250% 10/03/05 3.250 50,000 151 681,597.22 3.295 CD U/B CALIF 3.250% 10/03/05 3.250 50,000 151 681,597.22 3.295 CD U/B CALIF 3.250% 10/03/05 3.250 50,000 151 681,597.22 3.295 CP MORG STAN 10/03/05 3.910 50,000 3 16,291.67 3.966 CP BEAR 10/03/05 3.820 50,000 4 21,222.22 3.875 CP BEAR 10/03/05 3.820 50,000 4 21,222.22 3.875 CP BEAR 10/03/05 3.820 50,000 4 21,222.22 3.875 CP BEAR 10/03/05 3.820 50,000 4 21,222.22 3.875 CP CITIGROUP 10/03/05 3.230 50,000 133 596,652.78 3.314 CP CITIGROUP 10/03/05 3.230 50,000 133 596,652.78 3.314 CP CITIGROUP 10/03/05 3.230 50,000 133 596,652.78 3.314 CP CITIGROUP 10/03/05 3.230 50,000 133 596,652.78 3.314 CP TOYOTA 10/03/05 3.220 50,000 137 612,694.44 3.305 CP TOYOTA 10/03/05 3.220 50,000 137 612,694.44 3.305 CP TOYOTA 10/03/05 3.220 50,000 137 612,694.44 3.305 CP GECC 10/03/05 3.240 50,000 137 616,500.00 3.326 CP B/A 10/03/05 3.260 50,000 137 620,305.56 3.347 CP B/A 10/03/05 3.260 50,000 137 620,305.56 3.347 CP B/A 10/03/05 3.260 50,000 137 620,305.56 3.347 CP B/A 10/03/05 3.260 50,000 137 620,305.56 3.347 CP B/A 10/03/05 3.260 50,000 137 620,305.56 3.347 DISC NOTES FHLMC 10/03/05 3.200 50,000 125 555,555.56 3.281 DISC NOTES FHLMC 10/03/05 3.200 50,000 125 555,555.56 3.281 DISC NOTES FHLMC 10/03/05 3.200 50,000 125 555,555.56 3.281 DISC NOTES FHLMC 10/03/05 3.200 50,000 125 555,555.56 3.281 DISC NOTES FHLMC 10/03/05 3.180 50,000 133 587,416.67 3.262 DISC NOTES FHLMC 10/03/05 3.180 50,000 133 587,416.67 3.262 DISC NOTES FHLMC 10/03/05 3.180 50,000 133 587,416.67 3.262 DISC NOTES FHLMC 10/03/05 3.180 50,000 133 587,416.67 3.262 DISC NOTES FHLMC 10/03/05 3.180 50,000 137 605,083.33 3.264 DISC NOTES FHLMC 10/03/05 3.180 50,000 137 605,083.33 3.264 DISC NOTES FHLMC 10/03/05 3.180 50,000 137 605,083.33 3.264 DISC NOTES FHLMC 10/03/05 3.180 50,000 137 605,083.33 3.264 DISC NOTES FHLMC 10/03/05 3.180 50,000 138 609,500.00 3.264 DISC NOTES FHLMC 10/03/05 3.180 50,000 138 609,500.00 3.264 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 4 POOLED MONEY INVESTMENT ACCOUNT dl a/ at MATURITY TRANS PAR DAYS ` AMOUNT EFFECTIVE DATE TYPE r DESCRIPTION DATE YIELD 000 HELD EARNED YIELD 10/03/05 REDEMPTIONS (continued) DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 DISC NOTES FHLMC 10/03/05 3.170 50,000 143 629,597.22 3.255 10/03/05 PURCHASES AGENCY FHLB 4.250% 04/16/07 4.420 50,000 CID COUNTRY 10/04/05 3.800 37,000 CID COUNTRY 10/04/05 3.800 50,000 CID NCAT 10/04/05 3.810 50,000 CID AMER EXP 10/04/05 3.850 50,000 CID AMER EXP 10/04/05 3.850 50,000 CID COUNTRY 10/07/05 3.790 42,000 CID CITIGROUP 10/07/05 3.780 50,000 CID CITIGROUP 10/07/05 3.780 50,000 CID CITIGROUP 10/07/05 3.780 50,000 CID NISSAN 10/11/05 3.820 23,968 CID NISSAN 10/11/05 3.820 50,000 CID CHEVRON 10/11/05 3.720 50,000 CID GECC 10/12/05 3.720 50,000 CID GECC 10/12/05 3.720 50,000 CID W/F 10/14/05 3.720 50,000 CID W/F 10/14/05 3.720 50,000 CID W/F 10/14/05 3.720 50,000 CID W/F 10/14/05 3.720 50,000 10/04/05 REDEMPTIONS CID COUNTRY 10/04/05 3.800 37,000 1 3,905.56 3.853 CID COUNTRY 10/04/05 3.800 50,000 1 5,277.78 3.853 CID AMER EXP 10/04/05 3.850 50,000 1 5,347.22 3.904 CID AMER EXP 10/04/05 3.850 50,000 1 5,347.22 3.904 CID NCAT 10/04/05 3.810 50,000 1 5,291.67 3.863 CID MORG STAN 10/04/05 3.900 19,000 4 8,233.33 3.956 CID MORG STAN 10/04/05 3.900 50,000 4 21,666.67 3.956 CID MORG STAN 10/04/05 3.900 50,000 4 21,666.67 3.956 CID MORG STAN 10/04/05 3.900 50,000 4 21,666.67 3.956 CID MORG STAN 10/04/05 3.800 50,000 7 36,944.44 3.856 CID GECC 10/04/05 3.720 50,000 15 77,500.00 3.778 CID GECC 10/04/05 3.720 50,000 15 77,500.00 3.778 CID GECC 10/04/05 3.720 50,000 15 77,500.00 3.778 CID GECC 10/04/05 3.720 50,000 15 77,500.00 3.778 CID GECC 10/04/05 3.720 50,000 15 77,500.00 3.778 5 POOLED MONEYINVESTMENT ACCOUNT dl a/ a/' MATURITY TRANS PAR DAYS AMOUNT EFFECTI' DATE TYPE DESCRIPTION DATE YIELD (000) HELD EARNED YIELD 10/04/05 REDEMPTIONS (continued) CP GECC 10/04/05 3.720 50,000 15 77,500.00 3.778 10/04/05 PURCHASES BN WORLD 3.770% 11/01/05 3.770 50,000 BN WORLD 3.770% 11/01/05 3.770 50,000 BN WORLD 3.770% 11/01/05 3.770 50,000 BN WORLD 3.770% 11/01/05 3.770 50,000 CD W/F 3.840% 11/14/05 3.840 50,000 CD W/F 3.840% 11/14/05 3.840 50,000 CD W/F 3.840% 11/14/05 3.840 50,000 CP MORG STAN 10/06/05 3.750 50,000 CP MORG STAN 10/06/05 3.750 50,000 CP MORG STAN 10/07/05 3.750 50,000 CP MORG STAN 10/07/05 3.750 50,000 CP FCAR 11/16/05 3.830 50,000 CP FCAR 11/16/05 3.830 50,000 CP NCAT 11/16/05 3.830 50,000 10/05/05 RRS TREAS BILLS 12/01/05 3.300 50,000 TREAS BILLS 12/01/05 3.300 50,000 TREAS BILLS 12/01/05 3.300 50,000 TREAS BILLS 12/01/05 3.300 50,000 10/05/05 REDEMPTIONS CP MORG STAN 10/05/05 3.870 50,000 5 26,875.00 3.926 CP MORG STAN 10/05/05 3.870 50,000 5 26,875.00 3.926 CP MORG STAN 10/05/05 3.870 50,000 5 26,875.00 3.926 CP MORG STAN 10/05/05 3.870 50,000 5 26,875.00 3.926 CP MORG STAN 10/05/05 3.800 32,900 8 27,782.22 3.856 CP MORG STAN 10/05/05 3.800 50,000 8 42,222.22 3.856 CP MORG STAN 10/05/05 3.800 50,000 8 42,222.22 3.856 DISC NOTES FHLMC 10/05/05 3.180 50,000 142 627,166.67 3.265 DISC NOTES FHLMC 10/05/05 3.180 50,000 142 627,166.67 3.265 10/05/05 PURCHASESg/ CP MORG STAN 11/03/05 3.800 50,000 CP MORG STAN 11/03/05 3.800 50,000 CP MORG STAN 11/03/05 3.800 50,000 CP MORG STAN 11/03/05 3.800 50,000 10/05/05 PURCHASES AGENCY FHLMC 3.800% 12/27/06 4.390 6,637 AGENCY FHLMC 3.800% 12/27/06 4.390 50,000 AGENCY FHLMC 4.125% 04/02/07 4.450 50,000 n. POOLED MONEY 1 DATE TYPE DESCRIF 10/05/05 PURCHASES (continued) AGENCY FHLMC AGENCY FHLMC 10/06/05 REDEMPTIONS 4.250% 04/05/07 4.450 4.250% 04/05/07 4.465 50,000 50,000 AMOUNT EFFECTIVE EARNED YIELD CD W/F 3.730% 10/06/05 3.730 50,000 16 82,888.89 3.782 CD W/F 3.730% 10/06/05 3.730 50,000 16 82,888.89 3.782 CID MORG STAN 10/06/05 3.750 50,000 2 10,416.67 3.803 CID MORG STAN 10/06/05 3.750 50,000 2 10,416.67 3.803 CID MORG STAN 10/06/05 3.850 50,000 6 32,083.33 3.906 CID MORG STAN 10/06/05 3.850 50,000 6 32,083.33 3.906 CID MORG STAN 10/06/05 3.850 50,000 6 32,083.33 3.906 CID MORG STAN 10/06/05 3.850 50,000 6 32,083.33 3.906 CID MORG STAN 10/06/05 3.800 10,000 9 9,500.00 3.856 CID MORG STAN 10/06/05 3.800 50,000 9 47,500.00 3.856 CID MORG STAN 10/06/05 3.800 50,000 9 47,500.00 3.856 10/06/05 RRP TREAS BILLS 10/27/05 3.000 50,000 16-66,400.00 -3.042 TREAS BILLS 10/27/05 3.000 50,000 16-66,400.00 -3.042 10/06/05 PURCHASES CD LLOYDS 4.120% 03/03/06 4.150 30,025 CD HSBC 4.200% 03/30/06 4.200 25,000 CD HSBC 4.200% 03/30/06 4.200 50,000 CD HSBC 4.200% 03/30/06 4.200 50,000 CD ABN AMRO 4.175% 03/30/06 4.175 50,000 CD ABN AMRO 4.175% 03/30/06 4.175 50,000 CD ABN AMRO 4.175% 03/30/06 4.175 50,000 CID FCAR 03/02/06 4.100 50,000 CID FCAR 03/02/06 4.100 50,000 CID FCAR 03/02/06 4.100 50,000 CID B/A 03/13/06 4.100 50,000 CID B/A 03/13/06 4.100 50,000 CID B/A 03/13/06 4.100 50,000 CID B/A 03/13/06 4.100 50,000 CID GECC 03/30/06 4.110 50,000 CID GECC 03/30/06 4.110 50,000 CID GECC 03/30/06 4.110 50,000 CID GECC 03/30/06 4.110 50,000 10/07/05 REDEMPTIONS CP MORG STAN 10/07/05 3.750 50,000 3 15,625.00 3.803 CID MORG STAN 10/07/05 3.750 50,000 3 15,625.00 3.803 CID COUNTRY 10/07/05 3.790 42,000 4 17,686.67 3.844 CID CITIGROUP 10/07/05 3.780 50,000 4 21,000.00 3.834 CID CITIGROUP 10/07/05 3.780 50,000 4 21,000.00 3.834 7 POOL nr.- ai DATE TYPE DESCRIPTI 10/07/05 REDEMPTIONS (continued) dl IS PAR DAYS '' AMOUNT EFFECTIVE D 000 HELD EARNED ` YIELD CID CITIGROUP 10/07/05 3.780 50,000 4 21,000.00 3.834 CID BEAR 10/07/05 3.850 35,000 7 26,201.39 3.906 CID BEAR 10/07/05 3.850 50,000 7 37,430.56 3.906 CID BEAR 10/07/05 3.850 50,000 7 37,430.56 3.906 CID BEAR 10/07/05 3.850 50,000 7 37,430.56 3.906 CID CITIGROUP 10/07/05 3.830 50,000 8 42,555.56 3.886 CID CITIGROUP 10/07/05 3.830 50,000 8 42,555.56 3.886 CID MORG STAN 10/07/05 3.800 10,000 10 10,555.56 3.857 CID MORG STAN 10/07/05 3.800 50,000 10 52,777.78 3.857 CID MORG STAN 10/07/05 3.800 50,000 10 52,777.78 3.857 10/07/05 PURCHASES CD RABO 4.130% 03/01/06 4.130 50,000 CD BNP PARIBAS 4.200% 03/28/06 4.200 50,000 CD BNP PARIBAS 4.200% 03/28/06 4.200 50,000 CD HSBC 4.200% 03/28/06 4.200 50,000 CD HSBC 4.200% 03/28/06 4.200 50,000 CD WA MU, FA 4.160% 03/30/06 4.160 50,000 CD FORTIS 4.190% 03/30/06 4.190 50,000 CD CIBC 4.195% 03/30/06 4.195 50,000 CD BARCLAYS 4.230% 03/30/06 4.225 50,000 CID COUNTRY 11/01/05 3.840 26,000 CID COUNTRY 11/01/05 3.840 50,000 CID SARA LEE 12/05/05 3.930 25,000 TREAS BILLS 03/30/06 3.805 50,000 TREAS BILLS 03/30/06 3.805 50,000 TREAS BILLS 03/30/06 3.805 50,000 TREAS BILLS 03/30/06 3.805 50,000 10/11/05 REDEMPTIONS CD CS/1ST BOSTON 3.655% 10/11/05 3.650 15,000 32 48,666.88 3.701 CD CS/1ST BOSTON 3.655% 10/11/05 3.650 50,000 32 162,222.94 3.701 CD NOVA SCOT 3.300% 10/11/05 3.300 50,000 137 627,916.67 3.346 CD NOVA SCOT 3.300% 10/11/05 3.300 50,000 137 627,916.67 3.346 CD NOVA SCOT 3.300% 10/11/05 3.300 50,000 137 627,916.67 3.346 CD NOVA SCOT 3.300% 10/11/05 3.300 50,000 137 627,916.67 3.346 CD HSBC 3.310% 10/11/05 3.310 25,000 152 349,388.89 3.356 CD HSBC 3.310% 10/11/05 3.310 50,000 152 698,777.78 3.356 CD HSBC 3.310% 10/11/05 3.310 50,000 152 698,777.78 3.356 CD HSBC 3.310% 10/11/05 3.310 50,000 152 698,777.78 3.356 CID NISSAN 10/11/05 3.820 23,968 8 20,346.17 3.876 CID NISSAN 10/11/05 3.820 50,000 8 42,444.44 3.876 CID CHEVRON 10/11/05 3.720 50,000 8 41,333.33 3.775 CID GECC 10/11/05 3.720 50,000 22 113,666.67 3.780 CID GECC 10/11/05 3.720 50,000 22 113,666.67 3.780 CID GECC 10/11/05 3.720 50,000 22 113,666.67 3.780 CID GECC 10/11/05 3.720 50,000 22 113,666.67 3.780 CID NCAT 10/11/05 3.650 5,000 32 16,222.22 3.713 8 POOLED MONEY`I UA I C 1 / iG 1'1 10/11/05 REDEMPTIONS (continued) CID DEERE CID SARA LEE CID NCAT 10/11/05 PURCHASES CD W/F CD W/F CD W/F CD W/F CD W/F CID COUNTRY CID COUNTRY CID COUNTRY CID COUNTRY 10/12/05 SALES TREAS BILLS TREAS BILLS TREAS BILLS TREAS BILLS TREAS BILLS 10/12/05 REDEMPTIONS CID GECC CID GECC CID KITTY HAWK CID KITTY HAWK 10/12/05 NO PURCHASES 10/13/05 REDEMPTIONS CID RANGER CID RANGER 10/13/05 PURCHASES d/ ATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE YIELD (000) HELD EARNED YIELD 10/11/05 3.700 20,000 32 65,777.78 3.764 10/11/05 3.670 25,000 32 81,555.56 3.733 10/11/05 3.650 50,000 32 162,222.22 3.713 3.750% 10/27/05 3.750 30,000 3.750% 10/27/05 3.750 50,000 3.750% 10/27/05 3.750 50,000 3.750% 10/27/05 3.750 50,000 3.750% 10/27/05 3.750 50,000 10/18/05 3.790 35,000 10/18/05 3.790 50,000 10/18/05 3.790 50,000 10/21/05 3.800 35,940 10/27/05 3.235 50,000 111 469,854.17 3.124 10/27/05 3.235 50,000 111 469,854.17 3.124 10/27/05 3.235 50,000 111 469,854.17 3.124 10/27/05 3.235 50,000 111 469,854.17 3.124 10/27/05 3.235 50,000 156 661,729.17 3.142 10/12/05 3.720 50,000 9 46,500.00 3.775 10/12/05 3.720 50,000 9 46,500.00 3.775 10/12/05 3.670 43,069 30 131,719.36 3.732 10/12/05 3.670 50,000 30 152,916.67 3.732 10/13/05 3.670 10,000 31 31,602.78 3.733 10/13/05 3.670 50,000 31 158,013.89 3.733 CD US BANK 3.790% 10/27/05 3.790 50,000 CD US BANK 3.790% 10/27/05 3.790 50,000 CD US BANK 3.790% 10/27/05 3.790 50,000 CD US BANK 3.790% 10/27/05 3.790 50,000 CID GECC 10/14/05 3.760 50,000 CID GECC 10/14/05 3.760 50,000 CID GECC 10/14/05 3.760 50,000 CID GECC 10/14/05 3.760 50,000 CID GECC 10/14/05 3.760 50,000 9 POOLED MONEY INVESTMENT ACCOUNT dl a/ a/ MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD 000 HELD EARNED YIELD 10/14/05 REDEMPTIONS CP GECC 10/14/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/14/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/14/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/14/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/14/05 3.760 50,000 1 5,222.22 3.813 CP W/F 10/14/05 3.720 50,000 11 56,833.33 3.776 CP W/F 10/14/05 3.720 50,000 11 56,833.33 3.776 CP W/F 10/14/05 3.720 50,000 11 56,833.33 3.776 CP W/F 10/14/05 3.720 50,000 11 56,833.33 3.776 CP TEXT FIN 10/14/05 3.700 35,000 35 125,902.78 3.765 CP CITIGROUP 10/14/05 3.260 50,000 151 683,694.44 3.351 CP CITIGROUP 10/14/05 3.260 50,000 151 683,694.44 3.351 CP CITIGROUP 10/14/05 3.260 50,000 151 683,694.44 3.351 CP CITIGROUP 10/14/05 3.260 50,000 151 683,694.44 3.351 10/14/05 PURCHASES CP GECC 10/17/05 3.760 50,000 CP GECC 10/17/05 3.760 50,000 CP GECC 10/17/05 3.760 50,000 CP GECC 10/17/05 3.760 50,000 CP GECC 10/17/05 3.760 50,000 CP GECC 10/17/05 3.760 50,000 CP GECC 10/17/05 3.760 50,000 10/15/05 REDEMPTIONS AGENCY FNMA 2.875% 10/15/05 1.420 10,000 850 336,945.49 1.404 AGENCY FNMA 2.875% 10/15/05 1.420 10,000 850 336,945.49 1.404 AGENCY FNMA 2.875% 10/15/05 1.420 50,000 850 1,684,727.46 1.404 AGENCY FNMA 2.875% 10/15/05 1.420 50,000 850 1,684,727.46 1.404 10/17/05 REDEMPTIONS CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 CP GECC 10/17/05 3.760 50,000 3 15,666.67 3.813 10/17/05 PURCHASES CP GECC CP GECC CP GECC CP GECC CP GECC CP GECC 10/18/05 3.820 50,000 10/18/05 3.820 50,000 10/18/05 3.820 50,000 10/18/05 3.820 50,000 10/18/05 3.820 50,000 10/18/05 3.820 50,000 10 POOLED MONEY INVESTMENT ACCOUNT dl a/ a/MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD (000) HELD EARNED YIELD 10/17/05 PURCHASES (continued) CP GECC 10/18/05 3.820 50,000 CP GECC 10/18/05 3.820 50,000 CP GECC 10/18/05 3.820 50,000 CP GECC 10/18/05 3.820 50,000 10/18/05 REDEMPTIONS CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP GECC 10/18/05 3.820 50,000 1 5,305.56 3.873 CP COUNTRY 10/18/05 3.790 35,000 7 25,793.06 3.845 CP COUNTRY 10/18/05 3.790 50,000 7 36,847.22 3.845 CP COUNTRY 10/18/05 3.790 50,000 7 36,847.22 3.845 CP MORG STAN 10/18/05 3.750 50,000 29 151,041.67 3.814 CP MORG STAN 10/18/05 3.750 50,000 29 151,041.67 3.814 CP MORG STAN 10/18/05 3.750 50,000 29 151,041.67 3.814 CP MORG STAN 10/18/05 3.750 50,000 29 151,041.67 3.814 10/18/05 PURCHASES CP GECC 10/20/05 3.740 50,000 CP GECC 10/20/05 3.740 50,000 CP GECC 10/21/05 3.740 50,000 CP GECC 10/21/05 3.740 50,000 CP GECC 10/21/05 3.740 50,000 CP GECC 10/21/05 3.740 50,000 CP CITIGROUP 10/24/05 3.750 50,000 CP CITIGROUP 10/24/05 3.750 50,000 CP CITIGROUP 10/24/05 3.750 50,000 CP CITIGROUP 10/24/05 3.750 50,000 10/19/05 REDEMPTIONS CD UBS 3.355% 10/19/05 3.355 40,000 148 551,711.11 3.402 CD UBS 3.355% 10/19/05 3.355 50,000 148 689,638.89 3.402 CD UBS 3.355% 10/19/05 3.355 50,000 148 689,638.89 3.402 CD UBS 3.355% 10/19/05 3.355 50,000 148 689,638.89 3.402 CP MORG STAN 10/19/05 3.750 50,000 30 156,250.00 3.814 CP MORG STAN 10/19/05 3.750 50,000 30 156,250.00 3.814 DISC NOTES FHLMC 10/19/05 3.230 50,000 154 690,861.11 3.321 11 F EFFECTIVE YIELD 10/19/05 PURCHASES CD W/F 3.750% 10/26/05 3.750 50,000 CD W/F 3.750% 10/26/05 3.750 50,000 CD W/F 3.750% 10/27/05 3.750 50,000 CD W/F 3.750% 10/27/05 3.750 50,000 CD FORTIS 3.750% 10/27/05 3.750 50,000 CD FORTIS 3.750% 10/27/05 3.750 50,000 CP NCAT 10/21/05 3.740 50,000 CP NCAT 10/21/05 3.740 50,000 CP CITIGROUP 10/25/05 3.740 50,000 CP CITIGROUP 10/25/05 3.740 50,000 10/20/05 REDEMPTIONS CP GECC 10/20/05 3.740 50,000 2 10,388.89 3.793 CP GECC 10/20/05 3.740 50,000 2 10,388.89 3.793 CP FCAR 10/20/05 3.750 50,000 31 161,458.33 3.814 CP FCAR 10/20/05 3.750 50,000 31 161,458.33 3.814 CP FCAR 10/20/05 3.750 50,000 31 161,458.33 3.814 CP FCAR 10/20/05 3.750 50,000 31 161,458.33 3.814 10/20/05 PURCHASES AGENCY FHLMC 4.250% 02/28/07 4.450 50,000 CD RABO 4.250% 03/30/06 4.250 50,000 CD RABO 4.250% 03/30/06 4.250 50,000 CP COUNTRY 10/21/05 3.760 50,000 CP COUNTRY 10/21/05 3.760 50,000 CP CITIGROUP 10/24/05 3.730 50,000 CP CITIGROUP 10/24/05 3.730 50,000 CP CITIGROUP 01/03/06 4.060 50,000 CP CITIGROUP 01/03/06 4.060 50,000 CP CITIGROUP 01/03/06 4.060 50,000 CP TOYOTA 03/01/06 4.100 50,000 CP TOYOTA 03/01/06 4.100 50,000 10/21/05 REDEMPTIONS CP COUNTRY 10/21/05 3.760 50,000 1 5,222.22 3.813 CP COUNTRY 10/21/05 3.760 50,000 1 5,222.22 3.813 CP NCAT 10/21/05 3.740 50,000 2 10,388.89 3.793 CP NCAT 10/21/05 3.740 50,000 2 10,388.89 3.793 CP GECC 10/21/05 3.740 50,000 3 15,583.33 3.793 CP GECC 10/21/05 3.740 50,000 3 15,583.33 3.793 CP GECC 10/21/05 3.740 50,000 3 15,583.33 3.793 CP GECC 10/21/05 3.740 50,000 3 15,583.33 3.793 CP COUNTRY 10/21/05 3.800 35,940 10 37,936.67 3.857 10/21/05 PURCHASES AGENCY FHLMC 4.250% 02/28/07 4.450 50,000 12 POOLED MONEY INVESTMENTACCOUNT d/ a/ a/' MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD (000) HELD EARNED YIELD 10/21/05 PURCHASES (continued) AGENCY FHLMC 4.250% 02/28/07 4.450 50,000 AGENCY FHLMC 4.250% 02/28/07 4.450 50,000 AGENCY FHLMC 4.250% 02/28/07 4.450 50,000 CP GECC 03/20/06 4.170 50,000 CP GECC 03/20/06 4.170 50,000 CP GECC 03/20/06 4.170 50,000 CP GECC 03/20/06 4.170 50,000 CP NCAT 03/28/06 4.130 50,000 CP NCAT 03/28/06 4.130 50,000 10/24/05 REDEMPTIONS CP CITIGROUP 10/24/05 3.730 50,000 4 20,722.22 3.783 CP CITIGROUP 10/24/05 3.730 50,000 4 20,722.22 3.783 CP CITIGROUP 10/24/05 3.750 50,000 6 31,250.00 3.804 CP CITIGROUP 10/24/05 3.750 50,000 6 31,250.00 3.804 CP CITIGROUP 10/24/05 3.750 50,000 6 31,250.00 3.804 CP CITIGROUP 10/24/05 3.750 50,000 6 31,250.00 3.804 10/24/05 PURCHASES CP GECC 10/25/05 3.760 50,000 CP GECC 10/25/05 3.760 50,000 CP GECC 10/25/05 3.760 50,000 CP GECC 10/25/05 3.760 50,000 CP GECC 10/25/05 3.760 50,000 CP GECC 10/25/05 3.760 50,000 10/25/05 REDEMPTIONS CP GECC 10/25/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/25/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/25/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/25/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/25/05 3.760 50,000 1 5,222.22 3.813 CP GECC 10/25/05 3.760 50,000 1 5,222.22 3.813 CP CITIGROUP 10/25/05 3.740 50,000 6 31,166.67 3.794 CP CITIGROUP 10/25/05 3.740 50,000 6 31,166.67 3.794 10/25/05 PURCHASES CP GECC 10/26/05 3.740 50,000 CP GECC 10/26/05 3.740 50,000 CP GECC 10/26/05 3.740 50,000 CP GECC 10/26/05 3.740 50,000 CP GECC 10/26/05 3.740 50,000 CP GECC 10/26/05 3.740 50,000 13 POOLED MONEYINVESTMENT' ACCOUNT d/ — a/ a/ MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD (000) HELD EARNED YIELD 10/26/05 REDEMPTIONS CD W/F 3.750% 10/26/05 3.750 50,000 7 36,458.33 3.802 CD W/F 3.750% 10/26/05 3.750 50,000 7 36,458.33 3.802 CP GECC 10/26/05 3.740 50,000 1 5,194.44 3.792 CP GECC 10/26/05 3.740 50,000 1 5,194.44 3.792 CP GECC 10/26/05 3.740 50,000 1 5,194.44 3.792 CP GECC 10/26/05 3.740 50,000 1 5,194.44 3.792 CP GECC 10/26/05 3.740 50,000 1 5,194.44 3.792 CP GECC 10/26/05 3.740 50,000 1 5,194.44 3.792 10/26/05 PURCHASES CD FORTIS 4.300% 03/30/06 4.300 50,000 CD FORTIS 4.300% 03/30/06 4.300 50,000 CP COUNTRY 10/27/05 3.780 35,000 CP COUNTRY 10/27/05 3.780 50,000 CP COUNTRY 10/27/05 3.780 50,000 CP COUNTRY 10/27/05 3.780 50,000 CP GECC 10/27/05 3.760 50,000 CP GECC 10/27/05 3.760 50,000 CP CRC 01/10/06 4.100 50,000 CP CRC 01/10/06 4.100 50,000 CP NCAT 02/01/06 4.120 15,000 CP NCAT 02/01/06 4.120 50,000 CP CITIGROUP 02/01/06 4.120 50,000 10/27/05 REDEMPTIONS BN B/A 3.350% 10/27/05 3.350 50,000 168 781,666.67 3.397 BN B/A 3.350% 10/27/05 3.350 50,000 168 781,666.67 3.397 BN B/A 3.350% 10/27/05 3.350 50,000 168 781,666.67 3.397 BN B/A 3.350% 10/27/05 3.350 50,000 168 781,666.67 3.397 CD FORTIS 3.750% 10/27/05 3.750 50,000 8 41,666.67 3.802 CD FORTIS 3.750% 10/27/05 3.750 50,000 8 41,666.67 3.802 CD W/F 3.750% 10/27/05 3.750 50,000 8 41,666.67 3.802 CD W/F 3.750% 10/27/05 3.750 50,000 8 41,666.67 3.802 CD US BANK 3.790% 10/27/05 3.790 50,000 14 73,694.44 3.843 CD US BANK 3.790% 10/27/05 3.790 50,000 14 73,694.44 3.843 CD US BANK 3.790% 10/27/05 3.790 50,000 14 73,694.44 3.843 CD US BANK 3.790% 10/27/05 3.790 50,000 14 73,694.44 3.843 CD W/F 3.750% 10/27/05 3.750 30,000 16 50,000.00 3.802 CD W/F 3.750% 10/27/05 3.750 50,000 16 83,333.33 3.802 CD W/F 3.750% 10/27/05 3.750 50,000 16 83,333.33 3.802 CD W/F 3.750% 10/27/05 3.750 50,000 16 83,333.33 3.802 CD W/F 3.750% 10/27/05 3.750 50,000 16 83,333.33 3.802 CD NOVA SCOT 3.330% 10/27/05 3.330 50,000 156 721,500.00 3.376 CD NOVA SCOT 3.330% 10/27/05 3.330 50,000 156 721,500.00 3.376 CD NOVA SCOT 3.330% 10/27/05 3.330 50,000 156 721,500.00 3.376 CD NOVA SCOT 3.330% 10/27/05 3.330 50,000 156 721,500.00 3.376 CD TORONTO 3.348% 10/27/05 3.340 50,000 156 723,689.85 3.386 CD TORONTO 3.348% 10/27/05 3.340 50,000 156 723,689.85 3.386 14 POOLED MONEY INVESTMENT; ACCOUNT d/ _ a/ a/' MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE TYPE DESCRIPTION DATE YIELD (000) HELD EARNED YIELD 10/27/05 REDEMPTIONS (continued) CD TORONTO 3.348% 10/27/05 3.340 50,000 156 723,689.85 3.386 CD RB CANADA 3.360% 10/27/05 3.345 50,000 156 724,796.44 3.391 CD RB CANADA 3.360% 10/27/05 3.345 50,000 156 724,796.44 3.391 CD FORTIS 3.300% 10/27/05 3.300 50,000 175 802,083.33 3.346 CD FORTIS 3.300% 10/27/05 3.300 50,000 175 802,083.33 3.346 CID GECC 10/27/05 3.760 50,000 1 5,222.22 3.813 CID GECC 10/27/05 3.760 50,000 1 5,222.22 3.813 CID COUNTRY 10/27/05 3.780 35,000 1 3,675.00 3.833 CID COUNTRY 10/27/05 3.780 50,000 1 5,250.00 3.833 CID COUNTRY 10/27/05 3.780 50,000 1 5,250.00 3.833 CID COUNTRY 10/27/05 3.780 50,000 1 5,250.00 3.833 CID B/A 10/27/05 3.300 50,000 164 751,666.67 3.397 CID B/A 10/27/05 3.300 50,000 164 751,666.67 3.397 CID B/A 10/27/05 3.300 50,000 164 751,666.67 3.397 CID B/A 10/27/05 3.300 50,000 164 751,666.67 3.397 CID NCAT 10/27/05 3.340 50,000 168 779,333.33 3.440 CID NCAT 10/27/05 3.340 50,000 168 779,333.33 3.440 CID NCAT 10/27/05 3.290 50,000 174 795,083.33 3.390 CID NCAT 10/27/05 3.290 50,000 174 795,083.33 3.390 CID NCAT 10/27/05 3.290 50,000 174 795,083.33 3.390 DISC NOTES FHLMC 10/27/05 3.230 50,000 156 699,833.33 3.321 DISC NOTES FHLMC 10/27/05 3.230 50,000 156 699,833.33 3.321 DISC NOTES FHLMC 10/27/05 3.230 50,000 156 699,833.33 3.321 DISC NOTES FHLMC 10/27/05 3.230 50,000 156 699,833.33 3.321 DISC NOTES FHLMC 10/27/05 3.230 50,000 156 699,833.33 3.321 DISC NOTES FHLMC 10/27/05 3.230 50,000 156 699,833.33 3.321 DISC NOTES FHLMC 10/27/05 3.215 50,000 164 732,305.56 3.308 DISC NOTES FHLMC 10/27/05 3.215 50,000 164 732,305.56 3.308 DISC NOTES FHLMC 10/27/05 3.220 50,000 164 733,444.44 3.313 DISC NOTES FHLMC 10/27/05 3.220 50,000 164 733,444.44 3.313 DISC NOTES FHLMC 10/27/05 3.220 50,000 164 733,444.44 3.313 DISC NOTES FHLMC 10/27/05 3.220 50,000 164 733,444.44 3.313 TREAS BILLS 10/27/05 3.050 50,000 168 711,666.67 3.137 TREAS BILLS 10/27/05 3.050 50,000 168 711,666.67 3.137 TREAS BILLS 10/27/05 3.050 50,000 168 711,666.67 3.137 TREAS BILLS 10/27/05 3.050 50,000 168 711,666.67 3.137 TREAS BILLS 10/27/05 3.050 50,000 169 715,902.78 3.137 TREAS BILLS 10/27/05 3.050 50,000 169 715,902.78 3.137 TREAS BILLS 10/27/05 3.070 50,000 171 729,125.00 3.159 TREAS BILLS 10/27/05 3.040 50,000 175 738,889.00 3.128 TREAS BILLS 10/27/05 3.040 50,000 175 738,889.00 3.128 TREAS BILLS 10/27/05 3.045 50,000 175 740,104.17 3.134 TREAS BILLS 10/27/05 3.045 50,000 175 740,104.17 3.134 10/27/05 PURCHASES CD BARCLAYS 4.310% 03/28/06 4.310 50,000 CD BARCLAYS 4.310% 03/28/06 4.310 50,000 CD BARCLAYS 4.310% 03/28/06 4.310 50,000 DISC NOTES FHLMC 03/28/06 4.130 50,000 15 POOLED MONEY INVESTMENT'ACCI a/ DATE TYPE DESCRIF 10/27/05 PURCHASES (continued) DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC 10/28/05 NO REDEMPTIONS 10/28/05 PURCHASES AGENCY FHLMC AGENCY FHLMC AGENCY FHLMC AGENCY FHLMC CID GECC CID GECC CID GECC CID GECC CID GECC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC DISC NOTES FHLMC MTN FIR CATERPILLAR 10/31/05 REDEMPTIONS d/ a/'' MATURITY TRANS PAR D/ DATE YIELD (000) HI 03/28/06 4.130 03/28/06 4.130 03/28/06 4.130 3.050% 01/19/07 4.522 3.625% 02/15/07 4.498 3.625% 02/15/07 4.510 4.125% 04/02/07 4.500 10/31/05 3.890 10/31/05 3.890 10/31/05 3.890 10/31/05 3.890 10/31/05 3.890 03/01 /06 4.070 03/01 /06 4.070 03/01 /06 4.070 03/01 /06 4.070 03/28/06 4.140 03/28/06 4.140 03/28/06 4.140 03/28/06 4.140 03/28/06 4.140 03/28/06 4.140 03/28/06 4.140 03/28/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 03/30/06 4.140 4.300% 10/28/08 4.300 CID GECC 10/31/05 3.890 CID GECC 10/31/05 3.890 CID GECC 10/31/05 3.890 CID GECC 10/31/05 3.890 CID GECC 10/31/05 3.890 16 50,000 50,000 50,000 40,000 50,000 50,000 50,000 15,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 15,000 AMOUNT tr-I-tc I Wt EARNED YIELD 15,000 3 4,862.50 3.945 50,000 3 16,208.33 3.945 50,000 3 16,208.33 3.945 50,000 3 16,208.33 3.945 50,000 3 16,208.33 3.945 POOLED MONEYINVESTMENT ACCOUNT a/ a DATE TYPE DESCRIPTION 10/31/05 PURCHASES d/ CANS PAR DAYS AMOUNT EFFECTIVE IELD 000 HELD EARNED YIELD CB DEERE 3.625% 05/25/07 4.760 8,500 CD S-E BANK 4.325% 03/30/06 4.320 50,000 CD S-E BANK 4.325% 03/30/06 4.320 50,000 CD FORTIS 4.320% 03/30/06 4.320 50,000 CD FORTIS 4.320% 03/30/06 4.320 50,000 CD RB SCOT 4.340% 03/30/06 4.340 50,000 CD RB SCOT 4.340% 03/30/06 4.340 50,000 CID COUNTRY 11/01/05 4.050 45,000 CID COUNTRY 11/01/05 4.050 50,000 CID COUNTRY 11/01/05 4.050 50,000 CID NCAT 11/01/05 4.020 50,000 CID NCAT 11/01/05 4.020 50,000 CID GECC 11/01/05 4.020 50,000 CID GECC 11/01/05 4.020 50,000 CID GECC 11/01/05 4.020 50,000 DISC NOTES FHLMC 03/30/06 4.150 50,000 DISC NOTES FHLMC 03/30/06 4.150 50,000 DISC NOTES FHLMC 03/30/06 4.150 50,000 DISC NOTES FHLMC 03/30/06 4.150 50,000 DISC NOTES FHLMC 03/30/06 4.150 50,000 DISC NOTES FHLMC 03/30/06 4.150 50,000 17 a/ The abbreviations indicate the type of security purchased or sold; i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FIR), Export Import Notes (EXIM), Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FFC), Corporate Securities (CB), US Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA), Medium Term Notes (MTN), Real Estate Mortgage Investment Conduit (REMIC). b/ Purchase or sold yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securities purchased, sold or redeemed. e/ Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. 1 Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 18 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ALAMO Diablo Valley Bank 10/07/05 3.670 4,500,000.00 01/06/06 ALHAMBRA Omni Bank, NA 08/12/05 3.590 2,000,000.00 11/10/05 Omni Bank, NA 08/19/05 3.610 4,000,000.00 11/18/05 Omni Bank, NA 09/01/05 3.620 4,000,000.00 12/01/05 Omni Bank, NA 09/09/05 3.520 6,000,000.00 12/09/05 Omni Bank, NA 10/07/05 3.660 4,000,000.00 01/06/06 The Bank of East Asia (USA), NA 10/13/05 3.720 3,095,000.00 01/12/06 The Bank of East Asia (USA), NA 08/11/05 3.860 3,000,000.00 02/09/06 The Bank of East Asia (USA), NA 08/17/05 3.890 6,000,000.00 02/16/06 ARROYO GRANDE Mid State Bank and Trust 05/18/05 3.160 5,000,000.00 11/16/05 Mid State Bank and Trust 06/10/05 3.170 5,000,000.00 12/09/05 Mid State Bank and Trust 07/14/05 3.510 5,000,000.00 01/12/06 Mid State Bank and Trust 08/10/05 3.860 5,000,000.00 02/08/06 Mid State Bank and Trust 09/08/05 3.700 5,000,000.00 03/09/06 Mid State Bank and Trust 10/12/05 4.040 5,000,000.00 04/12/06 BREA Pacific Western National Bank 08/03/05 3.780 4,000,000.00 02/01/06 CALABASAS First Bank of Beverly Hills, FSB 05/05/05 3.220 10,000,000.00 11/03/05 First Bank of Beverly Hills, FSB 06/01/05 3.180 10,000,000.00 11/30/05 First Bank of Beverly Hills, FSB 06/15/05 3.210 10,000,000.00 12/14/05 First Bank of Beverly Hills, FSB 09/01/05 3.840 10,000,000.00 03/02/06 CAMARILLO First California Bank 08/17/05 3.580 2,000,000.00 11/16/05 First California Bank 06/22/05 3.230 6,000,000.00 11/16/05 First California Bank 06/03/05 3.160 6,000,000.00 12/02/05 First California Bank 07/27/05 3.720 6,000,000.00 01/25/06 19 NAME CAMERON PARK Western Sierra National Bank Western Sierra National Bank CARLSBAD Southwest Community Bank CHATSWORTH Premier America Credit Union Premier America Credit Union Premier America Credit Union CHICO Tri Counties Bank CITY OF INDUSTRY EverTrust Bank EverTrust Bank EverTrust Bank CONCORD Cal State 9 Credit Union DUBLIN Operating Engineers Local # 3 FCU Operating Engineers Local # 3 FCU Operating Engineers Local # 3 FCU EL CENTRO Rabobank Rabobank Rabobank Rabobank Rabobank TIME DEPOSITS DEPOSIT DATE YIELD 07/13/05 3.480 10/05/05 3.930 08/31 /05 3.620 08/05/05 3.560 09/09/05 3.530 10/06/05 3.730 09/15/05 3.530 08/03/05 3.480 06/10/05 3.170 10/27/05 3.960 PAR MATURITY AMOUNT ($) DATE 7,000,000.00 01/11/06 8,000,000.00 04/05/06 5,000,000.00 11 /30/05 20,000,000.00 11 /04/05 20,000,000.00 12/09/05 20,000,000.00 01/05/06 20,000,000.00 12/15/05 5,000,000.00 11 /02/05 6,000,000.00 12/09/05 6,000,000.00 01/26/06 08/24/05 3.880 10,000,000.00 02/23/06 06/10/05 3.150 10,000,000.00 12/09/05 08/11/05 3.840 5,000,000.00 02/09/06 10/05/05 3.930 5,000,000.00 04/05/06 08/05/05 3.550 25,000,000.00 11/04/05 09/01 /05 3.620 25,000,000.00 12/01 /05 07/08/05 3.490 20,000,000.00 01/06/06 10/14/05 3.800 47,500,000.00 01/13/06 10/21/05 3.880 32,500,000.00 01/20/06 pill TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ELSEGUNDO First Coastal Bank, NA 08/05/05 3.560 3,000,000.00 11/04/05 First Coastal Bank, NA 05/19/05 3.230 2,000,000.00 11/17/05 First Coastal Bank, NA 09/16/05 3.520 5,000,000.00 12/16/05 First Coastal Bank, NA 10/20/05 3.910 2,000,000.00 01/19/06 First Coastal Bank, NA 09/01/05 3.860 2,000,000.00 03/02/06 Xerox Federal Credit Union 05/18/05 3.240 20,000,000.00 11/18/05 Xerox Federal Credit Union 06/02/05 3.190 20,000,000.00 12/02/05 Xerox Federal Credit Union 09/14/05 3.810 7,000,000.00 03/15/06 Xerox Federal Credit Union 10/17/05 4.170 10,000,000.00 04/19/06 FAIRFIELD WestAmerica Bank 08/10/05 3.600 5,000,000.00 11/09/05 WestAmerica Bank 08/17/05 3.580 75,000,000.00 11/16/05 WestAmerica Bank 10/06/05 3.720 60,000,000.00 01/05/06 WestAmerica Bank 10/14/05 3.800 65,000,000.00 01/13/06 WestAmerica Bank 10/19/05 3.850 15,000,000.00 01/19/06 WestAmerica Bank 10/21/05 3.850 25,000,000.00 01/19/06 WestAmerica Bank 10/28/05 3.950 25,000,000.00 01/27/06 FRESNO United Security Bank 10/19/05 4.170 40,000,000.00 04/19/06 FULLERTON Fullerton Community Bank, FSB 05/18/05 3.170 9,000,000.00 11/16/05 Fullerton Community Bank, FSB 05/17/05 3.190 10,000,000.00 11/16/05 Fullerton Community Bank, FSB 07/22/05 3.630 8,000,000.00 01/20/06 Fullerton Community Bank, FSB 08/05/05 3.800 5,000,000.00 02/03/06 GOLETA Pacific Capital Bank, NA 06/08/05 3.170 85,000,000.00 12/07/05 Pacific Capital Bank, NA 10/06/05 3.830 2,000,000.00 02/08/06 Pacific Capital Bank, NA 09/02/05 3.700 4,500,000.00 02/08/06 Pacific Capital Bank, NA 09/23/05 3.680 5,000,000.00 02/08/06 Pacific Capital Bank, NA 08/10/05 3.840 6,000,000.00 02/08/06 Pacific Capital Bank, NA 09/14/05 3.670 7,000,000.00 02/08/06 Pacific Capital Bank, NA 08/12/05 3.830 72,000,000.00 02/10/06 Pacific Capital Bank, NA 09/08/05 3.660 30,000,000.00 03/09/06 Pacific Capital Bank, NA 09/30/05 3.910 78,000,000.00 03/30/06 21 NAME GRANADA HILLS First State Bank of California First State Bank of California First State Bank of California HAWTHORNE Western Federal Credit Union IRVINE CommerceWest Bank, NA CommerceWest Bank, NA Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank LA JOLLA Silvergate Bank LIVERMORE Valley Community Bank LODI Farmers & Merchants Bk Cen CA LOS ANGELES 1 st Century Bank, NA Broadway Federal Bank, FSB Broadway Federal Bank, FSB Cathay Bank Cathay Bank Cathay Bank Cathay Bank Cathay Bank Cathay Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 06/02/05 3.180 7,000,000.00 12/01/05 06/17/05 3.260 2,000,000.00 12/16/05 07/20/05 3.560 3,000,000.00 01/19/06 10/21/05 3.890 30,000,000.00 01/20/06 08/18/05 3.630 500,000.00 11/17/05 09/30/05 3.540 5,000,000.00 01/06/06 08/17/05 3.570 25,000,000.00 11/16/05 08/17/05 3.570 90,000,000.00 11/16/05 06/22/05 3.290 11,000,000.00 12/15/05 06/16/05 3.240 39,000,000.00 12/15/05 09/30/05 3.530 10,000,000.00 01/06/06 10/07/05 3.660 60,000,000.00 01/06/06 10/14/05 3.790 105,000,000.00 01/13/06 06/10/05 3.190 5,000,000.00 12/09/05 09/16/05 3.780 6,000,000.00 03/17/06 07/07/05 3.440 25,000,000.00 01/05/06 09/28/05 3.550 10,000,000.00 01/05/06 07/08/05 3.500 2,500,000.00 01/06/06 09/09/05 3.720 3,000,000.00 03/10/06 05/11/05 3.240 25,000,000.00 11/09/05 08/17/05 3.570 25,000,000.00 11/16/05 05/19/05 3.220 15,000,000.00 11/17/05 06/01/05 3.180 17,000,000.00 11/30/05 08/31/05 3.600 25,000,000.00 11/30/05 06/09/05 3.160 55,000,000.00 12/08/05 22 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE LOS ANGELES (continued Cathay Bank 09/15/05 3.530 25,000,000.00 12/15/05 Cathay Bank 10/06/05 4.060 38,000,000.00 04/06/06 Cathay Bank 10/20/05 4.200 25,000,000.00 04/20/06 Cedars Bank 09/28/05 3.480 10,000,000.00 01/05/06 Cedars Bank 07/13/05 3.500 5,000,000.00 01/11/06 Cedars Bank 08/03/05 3.750 10,000,000.00 02/01/06 Center Bank 06/22/05 3.300 25,000,000.00 12/21/05 Center Bank 07/21/05 3.580 15,000,000.00 01/19/06 Center Bank 09/14/05 3.790 20,000,000.00 03/15/06 Center Bank 09/21/05 3.850 20,000,000.00 03/22/06 CHB America Bank 10/13/05 4.030 4,300,000.00 04/13/06 Citibank (West), FSB 10/06/05 3.730 150,000,000.00 01/05/06 Citibank (West), FSB 10/13/05 4.060 100,000,000.00 04/13/06 Citibank (West), FSB 10/19/05 4.190 100,000,000.00 04/19/06 Citibank (West), FSB 10/26/05 4.240 50,000,000.00 04/26/06 Commonwealth Business Bank 10/07/05 3.690 5,000,000.00 01/06/06 Eastern International Bank 05/04/05 3.220 900,000.00 11/02/05 Eastern International Bank 06/09/05 3.160 1,000,000.00 12/08/05 Far East National Bank 08/03/05 3.520 25,000,000.00 11/02/05 Far East National Bank 08/10/05 3.620 25,000,000.00 11/09/05 Hanmi Bank 08/04/05 3.540 25,000,000.00 11/03/05 Hanmi Bank 06/02/05 3.180 25,000,000.00 12/01/05 Hanmi Bank 06/15/05 3.210 25,000,000.00 12/14/05 Hanmi Bank 10/13/05 3.700 10,000,000.00 01/12/06 Hanmi Bank 07/14/05 3.490 25,000,000.00 01/12/06 Hanmi Bank 07/29/05 3.730 10,000,000.00 01/27/06 Hanmi Bank 08/04/05 3.750 40,000,000.00 02/02/06 Hanmi Bank 09/01/05 3.820 20,000,000.00 03/02/06 Hanmi Bank 09/14/05 3.770 20,000,000.00 03/15/06 Manufacturer's Bank 06/22/05 3.300 25,000,000.00 12/21/05 Manufacturer's Bank 10/21/05 3.880 25,000,000.00 01/20/06 Manufacturer's Bank 08/18/05 3.850 25,000,000.00 02/16/06 Mellon First Business Bank, NA 09/15/05 3.530 50,000,000.00 12/15/05 Mellon First Business Bank, NA 10/14/05 3.800 75,000,000.00 01/13/06 Mirae Bank 08/05/05 3.780 3,000,000.00 02/03/06 Mirae Bank 08/24/05 3.880 2,500,000.00 02/23/06 Mirae Bank 09/22/05 3.860 2,500,000.00 03/23/06 Mirae Bank 10/14/05 4.080 4,000,000.00 04/14/06 Nara Bank, NA 05/12/05 3.250 5,000,000.00 11/10/05 Nara Bank, NA 05/19/05 3.220 10,000,000.00 11/17/05 Nara Bank, NA 06/10/05 3.170 10,000,000.00 12/09/05 Nara Bank, NA 10/20/05 3.900 25,000,000.00 01/19/06 Nara Bank, NA 08/03/05 3.780 20,000,000.00 02/01/06 23 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE LOS ANGELES (continued One United Bank 06/08/05 3.170 10,000,000.00 12/07/05 One United Bank 07/14/05 3.530 5,000,000.00 01/12/06 One United Bank 07/14/05 3.530 5,000,000.00 01/12/06 One United Bank 09/22/05 3.890 5,000,000.00 03/23/06 Preferred Bank 08/05/05 3.530 4,000,000.00 11/04/05 Preferred Bank 09/15/05 3.510 20,000,000.00 12/15/05 Preferred Bank 09/16/05 3.480 31,000,000.00 12/15/05 Saehan Bank 08/19/05 3.870 16,000,000.00 02/17/05 State Bank of India (California) 10/27/05 3.990 3,000,000.00 01/26/06 State Bank of India (California) 08/18/05 3.870 2,000,000.00 02/16/06 State Bank of India (California) 10/06/05 4.070 3,000,000.00 04/06/06 Wilshire State Bank 08/11/05 3.590 8,000,000.00 11/10/05 Wilshire State Bank 06/01/05 3.180 22,000,000.00 11/30/05 Wilshire State Bank 08/31/05 3.600 36,000,000.00 11/30/05 Wilshire State Bank 06/17/05 3.260 3,000,000.00 12/16/05 Wilshire State Bank 09/16/05 3.480 23,000,000.00 12/16/05 Wilshire State Bank 10/14/05 3.780 19,000,000.00 01/13/06 MERCED County Bank 09/02/05 3.600 5,000,000.00 12/02/05 County Bank 09/08/05 3.550 10,000,000.00 12/08/05 County Bank 10/14/05 3.800 10,000,000.00 01/13/06 NATIONAL CITY Neighborhood National Bank 07/22/05 3.640 2,000,000.00 01/20/06 Neighborhood National Bank 08/03/05 3.790 2,000,000.00 02/01/06 NEWPORT BEACH Independence Bank 09/23/05 3.510 1,000,000.00 01/05/06 Independence Bank 09/23/05 3.510 1,500,000.00 01/05/06 Orange County Business Bank, NA 08/17/05 3.550 4,000,000.00 11/16/05 Orange County Business Bank, NA 09/23/05 3.440 4,000,000.00 12/21/05 Orange County Business Bank, NA 09/28/05 3.500 8,000,000.00 01/05/06 Orange County Business Bank, NA 10/13/05 3.680 4,000,000.00 01/12/06 Orange County Business Bank, NA 10/27/05 3.940 4,000,000.00 01/26/06 NORTH HIGHLANDS SAFE Credit Union 08/12/05 3.600 20,000,000.00 11/10/05 SAFE Credit Union 10/14/05 3.810 5,000,000.00 01/13/06 24 NAME OAKDALE Oak Valley Community Bank Oak Valley Community Bank OAKLAND TIME DEPOSITS DEPOSIT DATE YIELD 09/15/05 3.530 10/14/05 3.800 PAR MATURITY AMOUNT ($) DATE 3,500,000.00 12/15/05 2,500,000.00 01/13/06 Metropolitian Bank 06/02/05 3.180 1,500,000.00 12/01/05 Metropolitian Bank 07/22/05 3.630 1,000,000.00 01/20/06 Metropolitian Bank 07/28/05 3.720 1,500,000.00 01/26/06 Metropolitian Bank 08/25/05 3.850 1,000,000.00 02/23/06 Metropolitian Bank 08/25/05 3.850 1,000,000.00 02/23/06 Metropolitian Bank 09/21/05 3.850 2,000,000.00 03/22/06 ONTARIO Citizens Business Bank 05/06/05 3.220 30,000,000.00 11/04/05 Citizens Business Bank 09/21/05 3.590 30,000,000.00 12/16/05 Citizens Business Bank 09/30/05 3.530 25,000,000.00 01/06/06 Citizens Business Bank 08/18/05 3.850 30,000,000.00 02/16/06 Citizens Business Bank 09/02/05 3.790 25,000,000.00 03/03/06 PALO ALTO Greater Bay Bank, NA 05/12/05 3.250 25,000,000.00 11/10/05 Greater Bay Bank, NA 05/18/05 3.160 33,500,000.00 11/16/05 Greater Bay Bank, NA 05/25/05 3.210 25,000,000.00 11/23/05 Greater Bay Bank, NA 06/01/05 3.180 30,000,000.00 11/30/05 Greater Bay Bank, NA 06/02/05 3.180 25,000,000.00 12/01/05 Greater Bay Bank, NA 06/08/05 3.170 24,000,000.00 12/07/05 Greater Bay Bank, NA 06/09/05 3.160 22,000,000.00 12/08/05 Greater Bay Bank, NA 06/14/05 3.170 30,000,000.00 12/14/05 Greater Bay Bank, NA 07/13/05 3.500 15,000,000.00 01/11/06 Greater Bay Bank, NA 07/13/05 3.500 25,000,000.00 01/11/06 Greater Bay Bank, NA 08/31/05 3.880 25,000,000.00 03/01/06 Greater Bay Bank, NA 09/08/05 3.700 20,000,000.00 03/09/06 Greater Bay Bank, NA 09/08/05 3.700 25,500,000.00 03/09/06 Greater Bay Bank, NA 10/19/05 4.180 50,000,000.00 04/19/06 PALOS VERDES ESTATES Malaga Bank, FSB 05/11/05 3.240 7,000,000.00 11/09/05 Malaga Bank, FSB 06/15/05 3.210 9,000,000.00 12/14/05 Malaga Bank, FSB 08/05/05 3.800 2,000,000.00 02/03/06 Malaga Bank, FSB 08/19/05 3.870 10,000,000.00 02/17/06 25 TIME DEPOSITS DEPOSIT NAME DATE YIELD PALOS VERDES ESTATES (continued) Malaga Bank, FSB 09/02/05 3.790 Malaga Bank, FSB 10/06/05 4.060 PASADENA Community Bank 05/05/05 3.220 Community Bank 06/15/05 3.210 Community Bank 07/08/05 3.500 Community Bank 10/12/05 3.700 Community Bank 08/03/05 3.790 Community Bank 09/14/05 3.800 Community Bank 10/06/05 4.070 Wescom Credit Union 08/18/05 3.640 Wescom Credit Union 06/22/05 3.320 Wescom Credit Union 10/03/05 3.560 Wescom Credit Union 07/13/05 3.520 Wescom Credit Union 07/13/05 3.520 Wescom Credit Union 10/27/05 4.000 Wescom Credit Union 09/16/05 3.800 PLACERVILLE El Dorado Savings Bank 04/29/05 3.390 POMONA PFF Bank and Trust PFF Bank and Trust PFF Bank and Trust PFF Bank and Trust PFF Bank and Trust PORTERVILLE Bank of the Sierra RANCHO SANTA FE 05/05/05 3.220 06/08/05 3.170 07/21 /05 3.580 08/26/05 3.850 09/02/05 3.790 10/20/05 3.900 PAR MATURITY AMOUNT ($) DATE 4,000,000.00 03/03/06 5,000,000.00 04/06/06 15,000,000.00 11 /03/05 10,000,000.00 12/14/05 10,000,000.00 01/06/06 15,000,000.00 01/11/06 25,000,000.00 02/01/06 10,000,000.00 03/15/06 10,000,000.00 04/06/06 35,000,000.00 11 /17/05 50,000,000.00 12/21 /05 25,000,000.00 01/05/06 25,000,000.00 01/11/06 40,000,000.00 01/11/06 25,000,000.00 01/26/06 15,000,000.00 03/17/06 5,000,000.00 04/28/06 20,000,000.00 11 /03/05 20,000,000.00 12/07/05 20,000,000.00 01/19/06 20,000,000.00 02/24/06 20,000,000.00 03/03/06 10,000,000.00 01/19/06 La Jolla Bank, FSB 08/03/05 3.500 25,000,000.00 11/02/05 La Jolla Bank, FSB 05/05/05 3.200 20,000,000.00 11/03/05 La Jolla Bank, FSB 08/12/05 3.590 15,000,000.00 11/10/05 La Jolla Bank, FSB 08/17/05 3.570 25,000,000.00 11/16/05 C TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE RANCHO SANTA FE (continued La Jolla Bank, FSB 09/01/05 3.620 10,000,000.00 12/01/05 La Jolla Bank, FSB 09/01/05 3.620 25,000,000.00 12/01/05 La Jolla Bank, FSB 09/15/05 3.530 10,000,000.00 12/15/05 La Jolla Bank, FSB 09/22/05 3.660 5,000,000.00 12/16/05 La Jolla Bank, FSB 09/01/05 3.840 10,000,000.00 03/02/06 REDWOOD CITY Provident Central Credit Union 06/02/05 3.180 20,000,000.00 12/01/05 Provident Central Credit Union 10/27/05 4.250 20,000,000.00 04/27/06 RICHMOND The Mechanics Bank 11/05/04 2.380 10,000,000.00 11/04/05 The Mechanics Bank 06/09/05 3.170 10,000,000.00 12/08/05 The Mechanics Bank 07/08/05 3.500 10,000,000.00 01/06/06 The Mechanics Bank 07/27/05 3.720 20,000,000.00 01/25/06 The Mechanics Bank 08/04/05 3.780 10,000,000.00 02/02/06 The Mechanics Bank 03/03/05 3.250 10,000,000.00 03/03/06 The Mechanics Bank 09/14/05 3.770 10,000,000.00 03/15/06 The Mechanics Bank 04/01/05 3.490 10,000,000.00 04/05/06 The Mechanics Bank 10/14/05 4.110 10,000,000.00 04/14/06 The Mechanics Bank 10/20/05 4.210 10,000,000.00 04/20/06 The Mechanics Bank 10/28/05 4.270 10,000,000.00 04/28/06 RIVERSIDE Provident Savings Bank 10/06/05 3.720 25,000,000.00 01/05/06 Provident Savings Bank 08/03/05 3.780 25,000,000.00 02/01/06 Provident Savings Bank 08/18/05 3.850 25,000,000.00 02/16/06 Provident Savings Bank 09/22/05 3.880 25,000,000.00 03/23/06 ROCKLIN Five Star Bank 09/28/05 3.500 12,000,000.00 01/05/06 Five Star Bank 10/26/05 3.900 2,000,000.00 01/25/06 Five Star Bank 08/12/05 3.830 3,000,000.00 02/10/06 Five Star Bank 09/15/05 3.740 3,000,000.00 03/16/06 SACRAMENTO American River Bank 06/16/05 3.240 1,250,000.00 12/15/05 American River Bank 07/08/05 3.490 1,000,000.00 01/06/06 27 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SACRAMENTO (continued American River Bank 07/28/05 3.720 1,500,000.00 01/26/06 American River Bank 08/26/05 3.850 2,000,000.00 02/24/06 American River Bank 09/08/05 3.700 1,000,000.00 03/09/06 American River Bank 09/15/05 3.780 1,250,000.00 03/16/06 American River Bank 09/22/05 3.880 2,000,000.00 03/23/06 American River Bank 10/05/05 3.950 1,500,000.00 04/05/06 Bank of Sacramento 05/11/05 3.240 1,500,000.00 11/09/05 Bank of Sacramento 06/01/05 3.180 2,000,000.00 11/30/05 Merchants National Bank of Sacramento 06/22/05 3.300 2,000,000.00 12/21/05 Merchants National Bank of Sacramento 07/21/05 3.580 2,000,000.00 01/19/06 Merchants National Bank of Sacramento 10/12/05 4.040 2,000,000.00 04/12/06 River City Bank 05/26/05 3.240 2,000,000.00 11/23/05 River City Bank 07/29/05 3.750 3,000,000.00 01/27/06 River City Bank 10/05/05 3.930 2,000,000.00 04/05/06 The Golden One Credit Union 08/26/05 3.620 25,000,000.00 11/30/05 U.S. Bank, NA 05/04/05 3.250 75,000,000.00 11/02/05 U.S. Bank, NA 08/19/05 3.610 100,000,000.00 11/18/05 U.S. Bank, NA 05/27/05 3.200 25,000,000.00 11/23/05 U.S. Bank, NA 07/07/05 3.440 100,000,000.00 01/05/06 U.S. Bank, NA 08/11/05 3.860 100,000,000.00 02/09/06 Union Bank of California, NA 06/16/05 3.240 150,000,000.00 12/15/05 Union Bank of California, NA 07/15/05 3.530 175,000,000.00 01/13/06 Union Bank of California, NA 08/04/05 3.770 150,000,000.00 02/02/06 SAN DIEGO First Future Credit Union 05/27/05 3.200 15,000,000.00 11/23/05 First Future Credit Union 09/02/05 3.790 5,000,000.00 03/03/06 First Future Credit Union 09/02/05 3.790 15,000,000.00 03/03/06 First Future Credit Union 09/14/05 3.790 8,000,000.00 03/15/06 First United Bank 08/12/05 3.850 1,000,000.00 02/10/06 First United Bank 10/13/05 4.030 2,000,000.00 04/13/06 Mission Federal Credit Union 08/31/05 3.890 10,000,000.00 03/01/06 Mission Federal Credit Union 10/13/05 4.080 10,000,000.00 04/13/06 SAN FRANCISCO America California Bank 07/07/05 3.420 6,000,000.00 01/05/06 America California Bank 09/02/05 3.770 2,000,000.00 03/03/06 Oceanic Bank 09/13/05 3.800 4,000,000.00 09/13/06 Trans Pacific National Bank 08/31/05 3.630 1,000,000.00 11/30/05 Trans Pacific National Bank 09/21/05 3.600 1,000,000.00 12/16/05 Trans Pacific National Bank 10/12/05 3.700 1,000,000.00 01/11/06 28 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN FRANCISCO (continued Trans Pacific National Bank 08/04/05 3.780 1,000,000.00 02/02/06 Trans Pacific National Bank 09/22/05 3.860 1,000,000.00 03/23/06 United Commercial Bank 08/24/05 3.580 20,000,000.00 11/23/05 United Commercial Bank 06/01/05 3.180 50,000,000.00 11/30/05 United Commercial Bank 06/03/05 3.150 25,000,000.00 12/02/05 United Commercial Bank 06/10/05 3.170 25,000,000.00 12/09/05 United Commercial Bank 06/17/05 3.260 65,000,000.00 12/16/05 United Commercial Bank 07/14/05 3.510 55,000,000.00 01/12/06 United Commercial Bank 10/13/05 3.720 90,000,000.00 01/12/06 United Commercial Bank 10/26/06 3.940 40,000,000.00 01/25/06 SANJOSE Comerica Bank 08/12/05 3.870 25,000,000.00 02/10/06 Comerica Bank 10/07/05 4.040 50,000,000.00 04/07/06 Comerica Bank 10/26/05 4.230 25,000,000.00 04/26/06 Meriwest Credit Union 07/21/05 3.600 5,000,000.00 01/19/06 Meriwest Credit Union 09/14/05 3.800 5,000,000.00 03/15/06 Meriwest Credit Union 10/12/05 4.050 10,000,000.00 04/12/06 Santa Clara Co. Federal Credit Union 05/06/05 3.240 5,000,000.00 11/04/05 Santa Clara Co. Federal Credit Union 08/05/05 3.820 7,500,000.00 02/03/06 Santa Clara Co. Federal Credit Union 08/19/05 3.890 5,000,000.00 02/17/06 SAN LUIS OBISPO Mission Community Bank 06/09/05 3.140 1,000,000.00 12/08/05 Mission Community Bank 09/01/05 3.840 1,000,000.00 03/02/06 Mission Community Bank 10/05/05 3.950 2,500,000.00 04/05/06 Mission Community Bank 10/26/06 4.240 2,500,000.00 04/26/06 San Luis Trust Bank 10/19/05 4.140 1,700,000.00 04/19/06 SAN MARINO East West Bank 05/06/05 3.220 35,000,000.00 11/04/05 East West Bank 05/11/05 3.240 25,000,000.00 11/09/05 East West Bank 08/18/05 3.620 38,000,000.00 11/17/05 East West Bank 08/24/05 3.580 25,000,000.00 11/23/05 East West Bank 09/09/05 3.520 85,000,000.00 12/09/05 East West Bank 06/15/05 3.210 25,000,000.00 12/14/05 East West Bank 09/15/05 3.530 25,000,000.00 12/15/05 East West Bank 07/08/05 3.490 50,000,000.00 01/06/06 East West Bank 10/12/05 3.690 42,000,000.00 01/11/06 ce TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SANTA ROSA Summit State Bank Summit State Bank Summit State Bank SONORA Central California Bank STOCKTON Pacific State Bank Pacific State Bank Washington Mutual Bank, FA Washington Mutual Bank, FA Washington Mutual Bank, FA TORRANCE Chinatrust Bank (USA) Chinatrust Bank (USA) Chinatrust Bank (USA) Chinatrust Bank (USA) TRACY Service 1st Bank VACAVILLE Travis Credit Union WALNUT CREEK Bank of the West Bank of the West Bank of the West Bank of the West 09/21 /05 3.590 06/20/05 3.260 07/29/05 3.750 09/23/05 3.830 07/07/05 3.420 10/05/05 3.930 06/15/05 3.220 07/21 /05 3.590 08/19/05 3.880 08/12/05 3.600 09/09/05 3.530 10/14/05 3.810 10/21 /05 3.890 06/16/05 3.240 6,000,000.00 12/16/05 6,000,000.00 12/21 /05 4,000,000.00 01/27/06 5,000,000.00 03/24/06 1,000,000.00 01/05/06 1,000,000.00 04/05/06 45,000,000.00 12/14/05 75,000,000.00 01/19/06 60,000,000.00 02/17/06 20,000,000.00 11 /10/05 35,000,000.00 12/09/05 40,000,000.00 01/13/06 30,000,000.00 01/20/06 2,000,000.00 12/15/05 06/01/05 3.160 40,000,000.00 11/30/05 08/19/05 3.610 09/15/05 3.530 10/14/05 3.800 10/28/06 3.950 30 242,000,000.00 11 /18/05 82 , 000, 000.00 12/ 15/05 134,000,000.00 01 /13/06 176,500,000.00 01/27/06 NAME WHITTIER Banco Popular Banco Popular Banco Popular TIME DEPOSITS TOTAL TIME DEPOSITS OCTOBER 2005 DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 08/17/05 3.590 25,000,000.00 11/16/05 10/13/05 3.740 24,000,000.00 01/12/06 10/28/05 3.970 16,000,000.00 01/27/06 31 7,525,495,000.00 BANK DEMAND DEPOSITS October 2005 ($ in thousands) DAILY BALANCES DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ 1,127,017 $ 3,172,521 2 1,127,017 3,172,521 3 609,306 2,672,921 4 374,335 2,882,604 5 660,123 2,717,090 6 141,663 2,799,706 7 200,639 2,718,275 8 200,639 2,718,275 9 200,639 2,718,275 10 200,639 2,718,275 11 238,307 2,701,699 12 182,305 2,430,494 13 236,436 2,490,234 14 370,259 2,835,604 15 370,259 2,835,604 16 370,259 2,839,327 17 738,649 2,691,323 18 1,092,444 2,826,767 19 792,353 2,924,260 20 601,168 2,529,532 21 115,012 1,913,511 22 115,012 1,913,511 23 115,012 1,913,511 24 341,067 1,860,030 25 539,735 1,908,538 26 375,367 1,984,001 27 569,848 1,875,027 28 700,950 2,197,988 29 700,950 2,197,988 30 700,950 2,197,988 31 895,887 1,996,542 a/ AVERAGE DOLLAR DAYS $ 484,008 - Al The prescribed bank balance for October was $460,112. This consisted of $311,591 in compensating balances for services, balances for uncollected funds of $152,919 and a deduction of $4,398 for October delayed deposit credit. 32 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on October 19,2005, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- actions, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services No. 1676 $ 311,600,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: Time Deposits in Various Financial Institutions In Securities (sections 16503a Estimated From To Transactions (section 16430)* and 16602)* Total ( 1) 10/17/05 10/21/05 $ 773,900,000 $ 42,646,405,000 $ 7,480,495,000 $ 50,126,900,000 (2) 10/24/05 10/28/05 $ 883,600,000 $ 43,530,005,000 $ 7,480,495,000 $ 51,010,500,000 (3) 10/31/05 11/04/05 $ 280,300,000 $ 43,810,305,000 $ 7,480,495,000 $ 51,290,800,000 (4) 11/07/05 11/11/05 $ 2,548,600,000 $ 46,358,905,000 $ 7,480,495,000 $ 53,839,400,000 (5) 11/14/05 11/18/05 $ 341,300,000 $ 46,700,205,000 $ 7,480,495,000 $ 54,180,700,000 (6) 11/21/05 11/25/05 $ 858,700,000 $ 47,558,905,000 $ 7,480,495,000 $ 55,039,400,000 (7) 11/28/05 12/02/05 $ (2,115,100,000) $ 45,443,805,000 $ 7,480,495,000 $ 52,924,300,000 (8) 12/05/05 12/09/05 $ 615,100,000 $ 46,058,905,000 $ 7,480,495,000 $ 53,539,400,000 (9) 12/12/05 12/16/05 $ 2,690,400,000 $ 48,749,305,000 $ 7,480,495,000 $ 56,229,800,000 (10) 12/19/05 12/23/05 $ 2,037,100,000 $ 50,786,405,000 $ 7,480,495,000 $ 58,266,900,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 311,600,000. Dated: October 19,2005 * Government Code POOLED MONEY INVESTMENT BOARD: Signatures on file at STO and SCO Chairperson Member Member BOARD MEMBER ITEMS