2007 12 12 IAB-0 2
i tl
AGENDA
INVESTMENT ADVISORY BOARD
Finance Conference Room
78-495 Calle Tampico- La Quinta, CA 92253
December 12, 2007 - 4:30 P.M.
CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II PUBLIC COMMENT- (This is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
App�oval of Minutes of Meeting on October 9, 2007 and November 14, 2007 for
the Investment Advisory Board.
V BUSINESS SESSION
A. transmittal of Treasury Report for October, 2007
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. City of La Quinta FY 06/07 Audited Financial Statements
B. Month End Cash Report - November, 2007
C. pooled Money Investment Board Report - September, 2007
D. October 23, 2007 Joint Meeting Minutes with the City Council
VII BOARD MEMBER ITEMS
Vill
P.O. Box 1504 • LA QcINrA, CALIFORNIA 92247-1504
78-495 CAI I TANIPICO • LA QUINIA, CALIFORNIA 92253
(760) 777-7000 -FAX (760) 777-7101
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: December 14, 2007
ITEM TITTLE:
Transmittal of Treasury Report
for October 31, 2007
BACKGROUND:
Attached please find the Treasury Report October 31, 2007.
RECOMMENDATION:
Review, Receive and File the Treasury Report for October 31, 2007.
John M. (Falconer, Finance Director
MEMORANDUM
TO. La Quinta City Council
FROM John M Falconer, Finance Director/Treasurer
SUBJECT Tred'surer's Report for October 31, 2007
DATE November 30, 2007
Attached is the Tre'asurer's Report for the month ending October 31, 2007. 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
Be innin
Purchased
Notes
--Sold/Matured
Other
Ending
Change
Cash (3)
LAIF
$ (1,202,083)
$ 834,264
(1)
$ (367,819)
$ 834,264
US Treasuries (2)
46,303,085
53,362,004
630,531
(8,300,000)
0
38,633,616
(7,669,469)
US Gov't Sponsored Enterprises (2)
54,526,768
215,653
53,577,657
215,653
Commercial Paper (2)
19,874,654
10,000,000
(10,000,000)
93,991
(29,411)
54,620,759
19,845.243
93,991
(29,411)
Corporate Notes
Mutual Funds
7,928,243
6,884,010
4,878
7,933,121
4.878
Total
$ 187,676,681
$ 11,464,795
1
501,707
$ 18,801,707
$ 285,111
6,382,303
$ 180,624.880
501,707
$ 7,051,801
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. -
(Z 3 Z007
John M. Falconer Date
Finance Directorrirt(asurer
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. This negative balance will be offset with transfers from other investments
before warrants are presented for payment by the payee at the bank.
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a
Treasurer's Commentary
For the Month of October
Cash Balances - The portfolio size decreased by $7.0 million to $180.6 million. The major
reasons for the decrease were construction payments for the City Hall expansion and the
Vista Dunes Courtyard Homes project.
Investment Activity - The average maturity of the portfolio decreased slightly by 13 days
toll days at the end of October. The six month US Treasury benchmark continues to
decline based) upon investors fears and ended October at 3.95%. The Treasurer follows a
buy and hold investment policy and has not sold investments before maturity to take
advantage of market conditions. The Portfolio does contain Commercial Holdings in Merrill
Lynch and AEG which have been in the financial news regarding their write-offs of sub -prime
mortgages and intends to hold the investments which mature in January 2008 to maturity. In
addition, Freddie Mac has been in the news in regards to sub -prime exposure. The Treasurer
intends to hold these securites to maturity as well. The sweep account earned $4,772 in
interest income for the month of October and the bank fees for the month were $ 2,041
which resulted in a net increase of $ 2,731 in real savings.
Portfolio Performance - The overall portfolio performance decreased by four basis points from
the prior month and ended at 5.02% for the month, with the pooled cash investments
yielding 5.11 %. The overall portfolio yield (including bond proceeds) was one hundred seven
(107) basis points over the benchmark, which has increased by one (one) basis point from the
(106) basis point difference in September. With the average maturity of 116 days, the
portfolio yield should remain at these levels. The Treasurer has more of a barbell maturity
schedule with the longer term investments helping to keep yields higher as interest rates will
gradually be 'falling. At this time last year, the portfolio was yielding 5.01 % and the
benchmark was at 4.96% for virtually no difference so we have made significant progress in
meeting our benchmark. In the short term, the Treasurer has been investing more in LAIF
because its rate declines slower in a declining rate environment and in Commercial Paper.
The Treasurer, has not been investing in Treasury securities because of their low yield, except
for bond proceeds to ensure that the funds are available for capital projects, e.g. SilverRock
and Vista Dunes Courtyard Homes and the CVHC project at 48'h and Adams.
Future ThougHts
The Treasurer will continue to invest in short term maturities to take advantage of the yield
curve - Commercial Paper with 30 to 90 day maturities and Bond proceeds will be laddered in
three- and six -(month Treasury bills as they mature. Maturing GSE's will be rolled over to the
highest yield on curve taking into consideration cash flow needs or in medium term notes.
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City of La Omura
Rewnallarwn of Actual and Surplus Funds
City, Redeveblamenr ABency and FlnaMnp ANMMy
OMber J1,2Co]
BalancedAdual FN9s 180,6N,Bµ
Less Peary cash Funds (1,0001
Less ton -Surplus FN96 (1,226,SI
Ohara Of Surplus Fells S 179.391
C" Caah InvaFOn %
Bank pcmunM
Name-Availaeil
Sur lus
T e
BON
Surplra
ves
Surplus
W¢Ik Far9 -Demand
No
CMekuq
S (90J.]µ
S
Ad
as
5
WeIIS Far9�-Sweep
Pe0/oatYl-DGmartl
No
Sweep
559.093)
_
WeIISFa Mau -Demand
No
Yea
WA
Lliackln
1,cW
f 358)9
-
S 35,8)9
f 35,0]9
i
IS 350]9
S 350)9
Tptal-0 A¢ounls
5 307,019
U S Treasury
Cu9odln.Avmlad0
Su d5
Issuer? a
Ancryae]
Value
Suplus
Yes
AA
SurpMs
Yes
Total US Treasu
U 5 G vornmenr Sponsored Enteryn5¢s
Amomtµ
Suwus
SprpIU3
Custodian -AvedpemaN
Sur lus
19aU
asks
Yes
Ad
Yes
Bank of New yoh-
Year
FrWda Mdc
2.03,639
2,933.09
2,933,639
Sanknf Nav York-4nwM
Yes
Freddes Mac
9.01,141
9,931,M
8,931,141
Bankof New Yoh:Or
Yea
FXLB
1.999,073
1.991
IN 73
BaMgNnw Yoh -Demand
Yes
FFCB
d,931,101
4,07,101
�93),101
Bank of New Yaw-D.w
YGs
FreNk MM
1111,601
I,I11,E01
4I14601
BankaiNery Yoh -Demand
Tea
FHLB
7,997,532
],90],5M
7.9 9],SJ2
Bankof New YOM-Rm m
Tee
FHLB
BMW
9,91
989I
Bankof New Yark Demand
Yes
FFCB
9,9]1,µ2
9,9]1,96R
91971,962
Bankpl New York-DemaM
Yes
Freildp Mac
21M163
2441163
211N63
Talal-US GoverrvMrd Seoallkb
54,620,759
51.620.759
51,620,759
MWlrnrl arm NINe
Book
Sraque
sIser?Vyea
pdof
New Yoh -Demand
Yea
GeseralEI Capital
2982,955,018
BanMofN¢wVwk�Demand
Yes
US BanCory
3,W],956
3,p3],858
117,3121
Bank of Nay Vark- Demand
Yes
...I EM Ca dal
1%9
ISell 1]
],933,121
],933,121
PrYM Gom toy vaper
CusbmewromI
s us
is�LerR
Bcok
Vyce
Surp:V
Yes
Ad
SwpWs
Yes
Bdokd New oM-Demand
Yes
Ne9M
1,9]3.1]9
1.9]3.119
BankWNew York -Demand
Tpa
procdrSGamOb
4.973,991
d,9]3,991
d,BYJ,991
Bank of New YaMDemand
Yes
Memll Lyrlslr
I,µ6,60d
{,916.89d
a,B18,60d
Bankpl New Vprk - Demand
Yes
AIG Fredi Inc
dµ9,189
1,919.169
I,9d9189
Total -Prune Commemal Pd r
19,615213
19815,2At
19 µ5,16]
Local l A9enlrM1e. Final
sur6A4
Surplus
Name- Mailabil
Sm lus
T e
Bopk
YGs
M
Yes
WF-cM-Dern—
Yea
51ale PNl
]],96)a13
3
(163L301)
M1169
IAIF-RDA'-Demartl
Y¢s
Sidk purl
Fh6203
8%203
1.63130{
566 NO
3],003,J12
TMy-$INe pool
3B,B.T],616
lT15.
30,63],616
Total City IMubrn
Toll Cry CaSk'6 Nw VykV,
Frucal Arand nvesdvnls
Su(1p0u
sur
pNo
aAn[WFuLmHse
suTrew5ua
f 2
266]88)
$
5
09
f 15A5ct90901
NV
ff
3,..0W699
f 1,631,301
$ 126
,
L.20I6%
0,p100%
Suplus
No
ptl
Suephas
No
AY FUMs
Actual Y.
Surplus
Yes
O W30%
00]00%
Suryluc
No
AO
Surplus
No
At FUMs
Aquar%
Surplus
Yes
3D239
564468%
Surplus
No
Ad
Surplus
No
Al Funds
Actual%
S, up
Yes
1392ax
44221%
a-
Actes
SuMtt-
qqFuuak%
Sw
+0 9e]D%
11 p6zzx
Surplus
Np
Ad
Surplus
Np
All FUMs
Agrial%
5uplus
Tes
213099'/.
306259•k
121,µ2,]N 121,032.739 1 1.931,301 119,Iµ,N3 8]00]t% µ56]0%
130,6µ 9]0 121,afit 019 1,6]1.109 119,{3],NI
Pomola CM Im29meMs
CrrsMdbn-AvailaMR
Su u5
Issuer? a
Amortlaed
Value
Surplus
Yes
Ad
Surplus
Yes
2N2 RDAU BankLIP
2WI FHnce AW -cm
3Ns Finaite gNbwly LM
2WIFindree qu0p LIP
Yes
Yes
You
Yes
U.S.Treasuy Bill
USTreasrayBut
USTreasury Bill
US Treasu B91
13,9W,M0
S,Wd,114
11,910213
21M5,150
13,80],nd0
5.W1,111
11,91Q2a3
21 M5350
13,90),950
5,901,111
11810.213
21B%.a5o
Toll -US Tara
5],5]16.5)
53,5Ti,07
SJST.C5)
POMaIb-Mu6aIFUMs
Truq¢e Avadabil
Su Ws
Morey Mahe)
MUWalFurtl
Book
Value
Sur[46
Yes
Ad
Suplus
Yes
C. CeNerUSBdN Purled
YES
1d Amercen
d58
458
458
Comic Cemer U S Bank -DOI Svc
YES
1stAmencan
1991 RDA US Bank -Debt Svc
YES
1V American
19BSRDA U SI-CHIP
YES
to AmeMsn
IM RDA S Bank - SpGdal Fund
YES
tat American
2001 Fin AUM-INI US Bank-E.
YES
IN Amerlun
-
1993RDA U$Bank -CIP
TES
1MAnnenWn
1999 RDA U S INV* - OM Svc
YES
19 American
1998 RDA U S Book - Sp¢ael FUM
YES
IMANN..
-
1998RDA U$Bank -CIP
YES
1sl Arrerican
2001 RDA US Bah -ON Svc
YES
Iit Amercan
2001 RDA U3 Bank -CIP
YES
1p Airerkan
2002 RDA US Bank - ON Svr
YES
It Ansenwn
M2 RDA U$ BankCHIP
YES
let Amencan
2,747,466
2,747A0
3747,I66
2003 Taaabk RDA U S Bank' DS
YES
1sl Amengn
203 Taaabk RDA U S SanxGO1
YES
1st Arrencan
2003 Taaabk RDA V S B. CIP
YES
19Amenwn
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TES
tat Amengn
3,634.379
3.634,379
3.634379
2001 Fin AM US Batik - COI
YES
istAmerk'an
SudOUI -MONaI Fund
6J82,303
6,382,303
6,3B23IXs it
Total Fiscal AOaM Nma ft
µ 9b 960I 6"Rimi' 0 µ,959 0
1 (403,6251I 16313µ 1)3T fi06 µt012X 68.5)]0%
Surplus
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Ad
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Yes
is 24%
29NU%
Surplus
NO
Ad
Surplus
No
All Funds
Actual%
Surplus
Yes
35335%
355]6%
}1.1951% ]]A3]OX
G.WTell fµ.R1,µ01 181028.576 1,4131,1041]B,Jf)p1 b3,µ8 1.6N.]01 1]31.6µ f00.000 1000000%
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l
INVESTMENT ADVISORY BOARD
Meeting Date: December 14, 2007
ITEM TITLE:
City of La Quinta Fiscal Year 2006/07
Audited Financial Statement
BACKGROUND:
Correspondence & Written
Material Item A
Mr. Shirish Patel, Manager with Lance Soil & Lunghard, LLP, CPA's, 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 Correspondence & Written
Material Item B
Meeting Date: December 14, 2007
ITEM TITLE:
Month End Cash Report - November, 2007
BACKGROUND:
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances), but would report in a timely fashion
selected cash balances. Also included is a historical analysis of investment
limitations by category.
RECOMMENDATION:
Information item only.
rA���'
John M. Falconer, Finance Director
5
8
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rage t or l+
Release I About I Announcements
Data Download Program (DDP)
Federal Reserve Release
Out_standings I Volume statistics I Year-end I Maturity, Distribution I
Announcement: The commercial paper rates and volume statistics for November 15, which are derived
from source data provided by the Depository Trust & Clearing Corporation (DTCC), have been reissued
to reflect corrected source data.
Data as of November 30, 2007
Commercial Paper Rates and Outstanding
Derived from data supplied by The Depository Trust & Clearing Corporation
Posted December 3, 2007
Discount rates
Term
AA
nonfinancial
A2/P2
nonfinancial
AA
financial
asset -backed
1-day
4.46
4.97
4.53
5.06
7-day
4.58
5.09
4.42
5.15
15-day
4.55
5.09
4.49
5.09
30-day
4.46
5.19
4.47
539
60-day
4.46
5.47
4.91
5.55
90-day
4.46
5.42
4.58
5.45
Yield curve
http://www.federalreserve.gov/Releases/CP/ 12/3/2007 3
r1�. a.VuuII iI II i rapci nawb auu vuuiauuuigs
Money market basis
Percent
rage L oI 4
AA nonfinancial
-- ------ A2/P2 mmfmacial
AA financial
1 7 15 30 60
(Jays to Maturity
Discount rate spread
Thirty -day A2/P2 less AA nonfinancial commercial paper (daily)
5.9
5.7
5.5
5.3
5.1
4.9
4.7
4.5
4.3
90
Basis pointy
120
I
Flo
60
40
20
0
2001 2002 2003 2004 2005 2006 2007
Discount rate history
http://www.federalreserve.gov/Relmes/CP/
12/3/2007 4
rren: i,unnnerctat raper rcates ana vutstammngs
Thirty -day commercial paper (daily) Percent
rage s or 4
2001 2002 2003 2004 2005 2006 2007
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollars
1190
1090
990
890
790
690
590
490
Billions of dollars
I --•— Nonlinaneiai Ui�ht seats}
`{tr�YI AA , ... . .
� II
�w
I tt
titkrt. r'���,Agr r
ri I � rk
_j 1r JP r
2001 2002 2003 2004 2005 2006 2007
250
210
170
130
90
The daily commercial paper release will usually be available before 11:00am EST. However, the Federal
Reserve Board makes no guarantee regarding the timing of the daily commercial paper release. When
the Federal Reserve Board is closed on a business day, rates for the previous business day will be
available through the Federal Reserve Board's Data Download Program (DDP). This policy is subject to
change at any time without notice.
Release I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution
Data Download Program (DDP)
Home I Statistical releases
Accessibility I Contact Us
5
http://www.federalreserve.gov/Releases/CP/ 12/3/2007
1 GL IIL "III AUL L1V1I IXVJUlt.
rage t or i
TreasuryDilrect.
Recent Bill Auction Results
Security
Issue
Maturity
Discount
Investment
Price
Term
Date
Date
Rate °/a
Rate N.
Per $100
CUSIP
91-DAY
12-06-2007
03 06-2008
3,030
3,104
99,234083
912795D24
182-DAY
12-06-2007
06-05-2008
3,190
3.296
98.387278
91279SE72
14-DAY
12-03-2007
12-17-2007
3.860
3,930
99,849889
912795UC3
28-DAY
11-29-2007
12-27-2007
3.640
3.711
99.716889
912795B83
91-DAY
11-29-2007
02-28-2008
3.1/5
3.254
99,197431
912795C90
182-DAY
11-29-2007
05-29-2008
3.340
3,454
98,311444
912795E64
27-DAY
11-23-2007
12-20-2007
3.680
3.752
99.724000
912795875
90-DAY
11-23-2007
02-21-2008
3.390
3,476
99,152500
912795C82
181-DAY
11-23-2007
05-22-2008
3.460
3 580
98.260389
912795E56
S-DAY
11-15-2007
11-23-2007
4.100
4 172
99.908889
912795B34
28-DAY
11-35-2007
12-13 2007
1870
3.946
99,699000
912795B67
91-DAY
11-15-2007
02-14-2008
3.430
3 518
99.132972
912795C74
182-DAY
11-15-2007
05-15-2008
3.625
3./54
98.167361
912795E49
28-DAY
11-08-2007
12-06-2007
3.930
4 008
99.694333
912795859
91-DAY
11-08-2007
02-07-2008
3.550
3, 642
99.102639
912795C66
182-DAY
11 08-2007
05-08-2008
3.780
3,918
98.089000
912795E31
28-DAY
11-01-2007
11-29-2007
3,970
4.049
99.691222
912795842
91-DAY
11-01-2001
01-31-2008
3.920
4,025
99,009111
912795C58
182-DAY
11-01-2007
05-01-2008
3,945
4.092
98.005583
912795E23
29-DAY
10-25-2007
11-23-2007
3.915
3.993
99.684625
91279SB34
91-DAY
10-25-2007
01-24-2008
3.900
4,004
99,014167
912795C41
182-DAY
10-25-2007
04-24-2008
3.990
4,140
97.982833
912795D99
28-DAY
10-18-2007
11-15-2007
4,100
4.182
99.681111
912795B26
91-DAY
10 18-2007
01-17-2008
4.185
4.300
98.942125
912795C33
182-DAY
10-18-2007
04-17-2008
4 225
4.389
97.864028
912795DSI
28-DAY
10-11-2007
11-08-2007
3,680
1/52
99,713778
912/95A92
91-DAY
10-11-2007
01-10-2008
3.925
4.030
99,007847
912795C25
182-DAY
10-11-2007
04-10-2008
4,095
4,251
97.929750
912795D73
28-DAY
10-04-2007
11-01-2007
3,510
3.578
99.727000
912795A84
91-DAY
10-04-2007
01-03-2008
3.840
3.942
99.029333
912795891
182-DAY
10-04-2007
04-03-2008
4.000
4,151
97.977778
912795D65
28-DAY
09-27-2007
10-25-2007
1270
3.333
99 745667
912795A76
91-DAY
09-27-2007
12-27-2007
3.820
3,922
99.034389
912795883
182-DAY
09 27-2007
03-27 2008
4 000
4,151
97.977778
912795D57
28-DAY
09-20-2007
10-18-2007
3 930
4.008
99.694333
912795A68
91-DAY
09-20-2007
12-20-2007
4,050
4.160
98,976250
912795875
182-DAY
09-20-2007
03-20-2008
4.130
4,288
97,912056
912795D40
4-DAY
09-13-2007
09-17-2007
4,620
4.699
99.948667
912795UBS
28-DAY
09-13-2007
10-11-2007
4.000
4.079
99,688889
912795A50
91-DAY
09-13-2007
12-13-2007
1800
3.901
99.039444
912795867
Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method.
http://www.treasurydirect.gov/RI/OFBills 12/3/2007 6
Bill Lockyer, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
Date
Dad
Y1011d
Quartet to
Date Yield.
Average
Nsturfty
tKdml
11/15/2007
4.96
5.09
213
11/16/2007
4.95
5.08
211
11/17/2007
4.95
5.08
211
11/18/2007
4.95
5.08
211
11/19/2007
4.95
5.08
209
11/20/2007
4.95
5.07
209
11/21/2007
4.94
5.07
211
11/22/2007
4.94
5.07
211
11/23/2007
4.94
5.07
211
11/24/2007
4.94
5.06
211
11 /25/2007
4.94
5.06
211
11/26/2007
4.93
5.06
203
11/27/2007
4.93
5.06
206
111/28/20071
4.911
5.05
209
LAIF Performance Report
Quarter ending 9/30/2007
Apportionment Rate: 5.24%
Earnings Ratio: .00014311664742946
Fair Value Factor: 1.000553483
PMIA Average Monthly Effective Yields
October 2007
5.137%
September 2007
5.231%
August 2007
5.253%
Pooled Money Investment Account
Portfolio Composition
$62.1 Billion
10/31/07
Loans
29.47%
Corporate Bonds
0.60%
Commei
Pape,
13.68%
Reverse Treasuries
-0.80% 4.10% Mortgages
1.98%
Time Deposits
14.51 %
4gencies
21.18%
)s/BNs
5.28%
r1
rrcD: n.ia--aeiecteu interest Hates, weo-unry uauy upaate--November su, zuul
Yage 1 of 4
Federal Reserve Statistical release
H.15
Selected interest Rates (Daily) L41W
Sky m Content
Release Date: November 30, 2007
Weekly release dates I Historical data I Data Download Program (DDP) I About I Announcements
Daily update Otherformats: Screen reader I ASCII
mta Download
Program
The weekly release is posted on Monday. Daily updates of the weekly release are p
through Friday on this site. If Monday is a holiday, the weekly release will be p
after the holiday and the daily update will not be posted on that Tuesday.
FEDERAL RESERVE STATISTICAL RELEASE
H.15 DAILY UPDATE: WEB RELEASE ONLY
SELECTED INTEREST RATES
For use at 4:15 p.m. Eastern Time
Yields in percent per annum
November 30,
2007
2007
2007
2007
2007
Instruments
Nov
Nov
Nov
Nov
26
27
28
29
Federal funds (effective) 1 2 3
4.62
4.39
4.53
4.55
Commercial Paper 3 4 5
Nonfinancial
1-month
4.47
4.48
4.42
4.44
2-month
4.41
4.47
4.44
4.42
3-month
4.34
4.46
4.45
4.36
Financial
1-month
4.47
4.49
4.53
4.60
2-month
4.67
4.73
4.73
4.80
3-month
4.79
4.92
4.88
4.85
CDs (secondary market) 3 6
1-month
4.83
4.81
4.88
5.22
3-month
5.12
5.11
5.16
5.16
6-month
4.97
4.84
4.91
4.97
Eurodollar deposits (London) 3 7
1-month
4.85
4.90
4.90
5.60
3-month
5.20
5.15
5.25
5.25
6-month
4.90
4.95
4.90
4.95
Bank prime loan 2 3 8
7.50
7.50
7.50
7.50
Discount window primary credit 2 9
5.00
5.00
5.00
5.00
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
3.53
3.61
3.47
3.34
3-month
3.06
3.08
2.98
2.92
6-month
3.23
3.26
3.27
3.19
Treasury constant maturities
Nominal 10
1-month
3.53
3.68
3.52
3.38
3-month
3.13
3.16
3.05
2.99
6-month
3.33
3.37
3.38
3.30
1-year
3.20
3.26
3.31
3.22
2-year
2.92
3.05
3.17
3.06
http://www.federalreserve.gov/Releases/H15/update/ 12/3/2007 8
L LW. .IJ"tilN1L.4Ll.0 IIILRGJL i\aLGJ, vvGu-Vtay L auy vpuaLu--ivuvuiiivct w, t,UUi
rage I Ui 4
3-year
5-year
7-year
10-year
20-year
30-year
Inflation indexed 11
5-year
7-year
10-year
20-year
Inflation -indexed long-term average 12
Interest rate swaps 13
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
Corporate bonds
Moody's seasoned
Aaa 14
Baa
State & local bonds 15
Conventional mortgages 16
Footnotes
2.93
3.04
3.21
3.11
3.23
3.38
3.50
3.42
3.48
3.61
3.72
3.64
3.83
3.95
4.03
3.94
4.29
4.40
4.46
4.39
4.26
4.36
4.41
4.35
0.96
1.11
1.25
1.16
1.31
1.44
1.58
1.48
1.45
1.58
1.71
1.61
1.75
1.87
1.94
1.88
1.74
1.85
1.93
1.86
4.34
4.31
4.33
4.27
4.03
3.99
3.99
3.94
4.08
4.04
4.04
3.98
4.19
4.16
4.14
4.09
4.32
4.29
4.26
4.21
4.52
4.48
4.46
4.41
4.73
4.69
4.66
4.61
5.04
4.99
4.95
4.91
5.21 5.28 5.34 5.29
6.23 6.36 6.43 6.40
4.39
6.10
1. The daily effective federal funds rate is a weighted average of rates on broke
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the curr
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 settl
Depository Trust Company. The trades represent sales of commercial paper by deale
issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are
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.
8. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.
commercial banks. Prime is one of several base rates used by banks to price short
loans.
9. The rate charged for discounts made and advances extended under the Federal Re
credit discount window program, which became effective January 9, 2003. This rate
adjustment credit, which was discontinued after January 8, 2003. For further info
www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate
for the Federal Reserve Bank of New York. Historical series for the rate on adjus
well as the rate on primary credit are available at www.federalreserve.gov/releas
http://www.federalreserve.gov/Releases/H15/update/ 12/3/2007 9
rceD: n.1.)--3e1ecieu mieresi 1c,=S, weD-vniy uany upame--rvovemner su, zvv4 rage 3 of 4
10. Yields on actively traded non -inflation -indexed issues adjusted to constant m
30-year Treasury constant maturity series was discontinued on February 18, 2002,
on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasu
factor for adjusting the daily nominal 20-year constant maturity in order to esti
nominal rate. The historical adjustment factor can be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/itcompositei
Source: U.S. Treasury.
11. Yields on Treasury inflation protected securities (TIPS) adjusted to constant
Source: U.S. Treasury. Additional information on both nominal and inflation -index
found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ind
12. Based on the unweighted average bid yields for all TIPS with remaining terms
more than 10 years.
13. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap
for a Fixed Rate Payer in return for receiving three month LIBOR, and are based o
at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Pa
ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited.
14. Moody's Aaa rates through December 6, 2001, are averages of Aaa utility and A
rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds o
15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Th
16. Contract interest rates on commitments for fixed-rate first mortgages. Source
---------------------------------------------------------------------------------
Note: Weekly and monthly figures on this release, as well as annual figures avail
Board's historical H.15 web site (see below), are averages of business days unles
---------------------------------------------------------------------------------
Current and historical H.15 data are available on the Federal Reserve Board's web
(www.federalreserve.gov/). For information about individual copies or subscriptio
Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-7
electronic access to current and historical data, call STAT-USA at 1-800-782-8872
Description of the Treasury Nominal and Inflation -Indexed Constant Maturi
Yields on Treasury nominal securities at "constant maturity" are interpolated by
from the daily yield curve for non -inflation -indexed Treasury securities. This cu
the yield on a security to its time to maturity, is based on the closing market b
actively traded Treasury securities in the over-the-counter market. These market
calculated from composites of quotations obtained by the Federal Reserve Bank of
constant maturity yield values are read from the yield curve at fixed maturities,
and 6 months and 1,*2, 3, 5, 7, 10, 20, and 30 years. This method provides a yiel
maturity, for example, even if no outstanding security has exactly 10 years remai
Similarly, yields on inflation -indexed securities at "constant maturity" are inte
daily yield curve for Treasury inflation protected securities in the over-the-cou
inflation -indexed constant maturity yields are read from this yield curve at fixe
currently 5, 7, 10, and 20 years.
---------------------------------------------------------------------------------
Weekly release dates I Historical data I Data Dovnload Program (DDP) I About I Announcements
Daily update Otherformats: Screen reader I ASCII
http://www.federaireserve.gov/Releases/H 15/update/ 12/3/2007 10
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11
INVESTMENT ADVISORY BOARD
Meeting Date: December 14, 2007
TITLE:
Pooled Money Investment Board Report
for September 2007
BACKGROUND:
Correspondence
& Written Material Item C
The Pooled Money Investment Board Report for September 2007 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
ahn l
M. Falconer, Finance Director
FMIA gun rnme Ntatement rage t or r
Skip to Content
C614tc�rni a State flreczsurer
Pooled Money Investment Account
Sub Prime Statement
The fallout from sub prime woes continues to affect both credit markets and investors. Two specific types of
securities --Structured Investment Vehicles (SIVs) and Collateralized Debt Obligations (CDOs)--seem to prompt the
most negative headlines. The PMIA does not now invest, nor has it ever invested, in either of these two securities.
We do not find them appropriate for our program.
For your review and consideration, and in keeping with full transparency of the PMIA portfolio performance, the
PMIA's holdings are displayed quarterly on the Treasurer's website and may be accessed under PMIB Quarterly
Reports.
http://www.treasurer.ca.gov/pmia-laif/news/subprime.asp 12/4/2007
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF SEPTEMBER 2007 WITH SEPTEMBER 2006
(DOLLARS IN THOUSANDS)
SEPTEMBER 2007 SEPTEMBER2006 CHANGE
Average Daily Portfolio
$ 58,068,289
57,084,758 $
+973,531
Accrued Earnings
$ 248,957 $
235,692 $
+13,265
Effective Yield
6.231
5.023
+0.208
Average Life -Month End (In Days)
207
Total Security Transactions
Amount
$
29,625,463 $
Number
614
Total Time'Deposit Transactions
Amount
$
4,526,000 $
Number
223
Average Workday Investment Activity
$
1,797,445 $
Prescribed Demand Account Balances
For Services
$
326,536 $
For Uncollected Funds
$
202,900 $
1
160 +47 1
24,108,292 $ +5,517,171
507
+107
2,735,500
$
+1,790,500
162
+61
1,342,190
$
+455,255
266,120
$
+60,416
191,772
$
+11,128
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
SEPTEMBER 30, 2007
DIFFERENCE IN
PERCENTOF
TYPE OF SECURITY
PERCENTOF PORTFOLIO FROM
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
2,150,965
3.51
+0.09
Bonds
0
0.00
0
Notes
0
0.00
0
Strips
0
0.00
0
Total Government
$
2,150,965
3.51
+0.09
Federal Agency Coupons
$
6,950,432
11.36
-1.63
Certificates of Deposit
10,612,213
17.34
-0.11
Bank Notes
1,500,000
2.45
+0.70
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
6,068,497
9.92
-2.99
Time Deposits
9,064,495
14.80
-0.73
GNMAs
201
0.00
0
Commercial Paper
11,194,381
18.29
+1.98
FHLMC/Remics
1,238,207
2.02
-0.17
Corporate Bonds
374,090
0.61
-0.05
AB 55 Loans
10,284,244
16.81
+1.87
GF Loans
2,165,300
3.64
+1.52
Reversed Repurchases
-396,104
-0.65
+0.48
Total (All Types)
$
61,196,921
100.00
INVESTMENT ACTIVITY
SEPTEMBER2007
AUGUST 2007
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
614 $
29,625,463
8" $
40,229,445
Other
18
164,681
11
92,860
Time Deposits
223
4,526,000
292
6,942,000
Totals
855 $
34,316,144
1147 $
46,264,305
PMIA Monthly Average Effective Yield
5.231
5.253
Year to Data Yield Last Day of Month
5.247
5.254
K
Pooled Money Investment Account
Portfolio Composition
$61.2 Billion
Corporate Bonds
0.61 %
Commercial Paper
18.29%
09/30/07
Reverses Treasuries
-0.65% 3.51 %
Time Deposits
14.80%
Mortgages
2.02%
Agencies
21.28%
CDs/BNs
19.79%
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item D
Meeting Date: December 14, 2007
ITEM TITLE:
October 23, 2007 Joint Meeting Minutes
with the City Councl
BACKGROUND:
The minutes from the joint meeting with the City Council were approved on
December 4, 2007.
RECOMMENDATION:
Information item only.
. Falconer, Finance Director
Joint City Council/Commission Meeting 4 October 23, 2007
INVESTMENT ADVISORY BOARD
1-C. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND INVESTMENT ADVISORY BOARD.
PRESENT: Board Members Rassi and Ross,
ABSENT: Moulin, Park, and Chairperson Deniel
Due to a lack of quorum, no meeting was held of the Investment Advisory
Board.
The following issues were discussed:
Investment Plan
LAIF amount
Consideration of a CDAR program
Concept of professional money management
The City Council meeting was recessed.
The City Council meeting was reconvened.
COMMUNITY SERVICES COMMISSION
1-D. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND COMMUNITY SERVICES COMMISSION.
PRESENT: Commissioners Brodsky, Gassman, Leidner, Quill, Sylk,
Chairman Weber
ABSENT: Commissioner Long
Chairman Weber stated staff has prepared a good, overview of the matters
discussed by the Commission this year. The Commission.has reviewed input
from the community which indicated they are happy with. the direction the
City is going; stated staff is essential in the success of receiving positive
feedback . from the community; and surveys and studies demonstrate the
need of additional open space and trails.
The following issues were discussed:
Overuse of the soccer facility
BOARD MEMBER ITEMS
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City./, 1. Q.w.
La Quinta, California
,ICI
Clomprehensive Annual Financial Report
Year Ended June 30, 2007
u
F
1
1
u
CITY OF LA QUINTA, CALIFORNIA
' COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2007
I
I
I
I
I
a Prepared By
FINANCE DEPARTMENT
k
0 JOHN M. FALCONER
Director of Finance
I
IL�
THIS PAGE INTENTIONALLY LEFT BLANK
1
1
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1
1
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I
I
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2007
'
TABLE OF CONTENTS
Page
Number
rINTRODUCTORY
SECTION
Letterof Transmittal............................................................................................................................
i
Listof Principal Officials..................................................................................................................
viii
iOrganizational
Chart .........................................................................................................................
ix
Certificate of Achievement for Excellence in Financial Reporting(GFOA)........................................x
1
SECTION
FINANCIAL
IndependentAuditors' Report .................................................................................................................1
Management's ment's Discussion and Analysis.................................................................................................3
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof Net Assets.................................................................................................................15
Statementof Activities....................................................................................................................16
Fund Financial Statements:
Balance Sheet — Governmental Funds..........................................................................................18
Reconciliation of the Balance Sheet of Governmental Funds
a
to theStatement of Net Assets.......................................................................................................20
Statement of Revenues, Expenditures and Changes in Fund
Balances — Governmental Funds...................................................................................................21
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................23
'np
Budgetary Comparison Statement by Department — General Fund..............................................24
llBudgetary
Comparison Statement — Low/Moderate Income Housing PA No. 2............................26
I
U
I
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30s 2007
TABLE OF CONTENTS (Continued)
Page
Number
Statement of Net Assets — Proprietary Funds.............................................................................27
Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds ...... 28
Statement of Cash Flows — Proprietary Funds...........................................................................29
Statement of Fiduciary Net Assets - Fiduciary Funds.................................................................31
Notes to Financial Statements...........................................................................................................33
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Non -Major Governmental Funds..................................................68
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Non -Major Governmental Funds..................................................................76
Budgetary Comparison Schedules — Special Revenue Funds
StateGas Tax........................................................................................................................84
Library.....................................................................................................................................85
FederalAssistance.................................................................................................................86
SLEBG....................................................................................................................................87
IndianGaming........................................................................................................................88
Lightingand Landscape.........................................................................................................89
RCTC......................................................................................................................................90
Quimby...................................................................................................................................91
PublicSafety...........................................................................................................................92
ArtsIn Public Places...............................................................................................................93
SouthCoast Air Quality..........................................................................................................94
AB939....................................................................................................................................95
Low/Moderate Income Housing PA No. 1..............................................................................96
CVViolent Crime Task Force.................................................................................................97
I
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2007
TABLE OF CONTENTS (Continued)
Page
Number
Budgetary Comparison Schedules — Capital Projects Funds
CapitalImprovement.............................................................................................................98
Redevelopment Agency PA No. 1................................................................................I.......99
2004 Low/Mod Bond...........................................................................................................100
Infrastructure.......................................................................................................................101
Transportation.....................................................................................................................102
Parksand Recreation.........................................................................................................103
CivicCenter........................................................................................................................104
LibraryDevelopment...........................................................................................................105
CommunityCenter..............................................................................................................106
StreetFacility......................................................................................................................107
ParkFacility........................................................................................................................108
FireFacility..........................................................................................................................109
RedevelopmentAgency PA No. 2......................................................................................110
Financing Authority Projects...............................................................................................111
Budgetary Comparison Schedules — Debt Service Funds
RedevelopmentAgency PA No. 1......................................................................................112
RedevelopmentAgency PA No. 2......................................................................................113
FinancingAuthority .................................................. :.......................................................... 114
Combining Statement of Net Assets — Internal Service Funds...............................................116
n Combining Statement of Revenues, Expenses and Changes
]' in Fund Net Assets — Internal Service Funds..........................................................................117
Statement of Cash Flows — Internal Service Funds................................................................118
Combining Balance Sheet —Agency Funds............................................................................120
Combining Statement of Changes in Assets and Liabilities — Agency Funds .........................121
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CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2007
TABLE OF CONTENTS (Continued)
Page
Number
STATISTICAL SECTION
NetAssets by Component............................................................................................................124
Changesin Net Assets.................................................................................................................12E
Changes in Net Assets — Governmental Activities.......................................................................12E
Changes in Net Assets — Business -type Activities.......................................................................127
Fund Balances of Governmental Funds.......................................................................................128
Changes in Fund Balances of Governmental Funds....................................................................129
Assessed Value and Estimated Actual Value of Taxable Property..............................................130
Assessed Value and Estimated Actual Value of Taxable Property -
RedevelopmentAgency...............................................................................................................131
Direct and Overlapping Property Tax Rates.................................................................................132
Principal Property Taxpayers.......................................................................................................133
Property Tax Levies and Collections............................................................................................134
Ratios of Outstanding Debt by Type .................... :........................................................................
135
Ratio of General Bonded Debt Outstanding.................................................................................136
Directand Overlapping Debt........................................................................................................137
Legal Debt Margin Information.....................................................................................................138
Pledged -Revenue Coverage........................................................................................................139
Demographic and Economic Statistics.........................................................................................140
PrincipalEmployers......................................................................................................................141
Full-time City Employees..............................................................................................................142
OperatingIndicators.....................................................................................................................143
CapitalAsset Statistics.................................................................................................................144
Schedule of Insurance in Force ....................................................................................................145
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P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
(760) 7 7 7 - 7 0 0 0
FAX (760) 777-7101
' November 20, 2007
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. Further, 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 district 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 �0, 2007. In addition, City Ordinance 2.12.040 requires an annual audit be
performed by a certified public accountant.
rManagement assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of
r internal control that it has established for this purpose. Because the cost of internal
control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of
any material misstatements.
Lance Soll & Lunghard LLP Certified Public Accountants have issued an unqualified
D opinion on the City of La Quinta financial statements for the year ended June 30,
2007, The independent auditor's report is located at the front of the financial
section of this report.
Management's discussion and analysis (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and
analysis of the basic financial statements. The MD&A complements the letter of
transmittal and should be read in conjunction with it.
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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
Managers 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
Resort Communities 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 Burrtec Waste Industries, 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. 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.
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1 Local economy
1 According to the State of California Economic Development Department (EDD), as
of July 2007, the total workforce for the City of La Quinta was 15,300 of which
14,900 were employed for a 2.6% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.7% and the statewide
unemployment rate of 5.2%.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.32 billion in FY 97/98 to $11.95 billion
(over 514%). This major increase in assessed value consists primarily of residential
development; however, in the last three 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: Costco, Embassy Suites Hotel, and Sam's Club. These
' compliment the Home Depot, Lowes, Wal-Mart, and Target that have previously
located in the City. In addition, the City is anticipating the opening of a Homewood
Suites Hotel, J.C. Penney, Mimi's Cafe, Applebees Restaurant, and Cost Plus World
Market. The City of La Quinta is also home to many fine restaurants, which include
the Hods Breath Inn, Arnold Palmer Restaurant, LG's and The Falls Prime Steak
houses, and the Cliff House.
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, Home Depot, Wal-Mart, Rancho La Quinta, and
D Lowe's.
During the past ten years, the City of La Quinta general fund expenditures have
increased 364%. Two Departments that have exceeded the average include
D Community Services (606%), and Planning and Development (401 %). In the case
of Community Services, much of the increase can be attributed to adding library
0 services and park maintenance functions to the Department. In the case of Planning
and Development, much of the increase is reflected in increased personnel costs.
During the same ten-year period, the City of La Quinta general fund revenues
A increased 330%. Sources that exceeded the average include intergovernmental
D (667%),, and interest earnings (446%). In the case of intergovernmental revenues,
Q most of the increase is attributable to the way the fire service contract is
accounted for and an increase in motor vehicle fees. In the case of interest
earnings, the increase is due to greater General Fund reserves and additional
advances between the General Fund and the Redevelopment Agency.
I
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 twenty (20) years, with an estimated
population of 85,940 versus the current 41,092, the annual revenues into the
General Fund will be $30 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) 06/07, the General Fund balance increased by $7.6 million
consisting of revenue increases in each category: taxes, license and permit fees,
charges for services, and interest earnings. In addition, expenditures were less
than budgeted in the police, fire and planning administration divisions.
The General Fund Balances as of June 30, 2007 was $84.6 million of which $28.4
million was reserved and $56.2 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 -
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roriented 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.
1 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 $67.3 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 $udget
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.
Relevant Financial Policies
D The State of California has mandated in the past 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 05/06 with a similar amount in
0 FY 04/06 to meet the State budget crisis. Also, since FY 02/03 through FY 05/06,
the La Quinta Redevelopment Agency has contributed $7.8 million to the State of
California pursuant to State of California Health and Safety Code 33681.12 to
meet its budget shortfalls. The $7.8 million of funds that have been diverted to the
State will not be refunded and are not be available for use within the City of La
Quinta. No State mandated contribution in FY 06/07 was made and no FY 07/08
contribution is anticipated.
n Major Initiatives
uThe City has been working with the Coachella Valley Association of Governments
on a multi -year project to acquire right of way ($6 million) in the City of La Quinta
to widen Jefferson Street between Highway 1 1 1 and Interstate 10 from two lanes
to six lanes. The construction phase ($23 million) is nearing completion with
improvements consisting of a six -lane bridge over the Whitewater Channel, which
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will provide an all-weather crossing. In addition, the $13.3 million City Hall
expansion is 40% complete with an expected completion in January 2008 which
will add an additional 15,000 sq. feet of office space and Emergency Operations
Center (EOC). Another major initiative is the construction of the Vista Dunes
Courtyard Homes ($35.2 million) on a former mobile home park which is utilizing
the latest energy saving "Green" technologies in its design and construction.
The La Quinta Financing Authority has 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 of 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 has 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 hotel(s) and the second golf course.
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,
2006. This was the tenth consecutive year that the City 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 finances.
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Respectfully submitted,
1
Thomas P. Genovese
City Manager
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31. M. Falconer
Finance Director
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City of La Quinta
Directory of Officials
June 30, 2007
CITY COUNCIL
Don Adolph, Mayor
Stanley Sniff, Mayor Pro Tern
Terry Henderson, Council Member
Lee Osborne, Council Member
Tom Kirk, Council Member
ADMINISTRATION
Thomas P. Genovese, City Manager
Bret Plumlee, Assistant City Manager -Management Services
Doug Evans, Assistant City Manager — Development Services
John M. Falconer, Finance Director
Tom Hartung, Building & Safety Director
Les Johnson, Planning Director
Kathy Jenson, City Attorney
Edie Hylton, Community Services Director
Veronica Montecino, City Clerk
Tim Jonasson, Public Works Director/City Engineer
viii
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IX
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, 2006
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.
� EL
CANMPresident
Executive Director
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Lance
Soil &
Lunghard
LLP
Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Brandon W. Burrows
Donald L. Parker
Michael K. Chu
David E. Hale
Dnf XnG".Slpaotaern
Richard K. Kikuchi
Retired
Robert C. Lance
191a1999
Richard C. Soll
Fred J. Lunghard, Jr.
19] im
We have audited the accompanying financial statements of the govemmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of La Quinta,
California, as of and for the year ended June 30, 2007, which collectively comprise the City's basic
financial statements as listed in the accompanying table of contents. These financial statements are the
responsibility of the City of La Quinta's management. 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 Government Auditing Standards
issued by ,the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In 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 as of June 30, 2007, and the
respective, changes in financial position and cash flows, where applicable, and the respective budgetary
comparisons for the General Fund and the LowlModerate Income Housing PA No. 2 for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
October 31, 2007, on our consideration of the City of La Quinta's internal control over financial reporting
ll and our tests of its compliance with certain 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
0 control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Govemment Auditing Standards and should be considered in assessing the results of
our audit.
D The management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
O of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
75 YEARS
1929 ��/J�1��0��0,4,
01 EX+CG'LCmm 203 N. Brea Blvd., Suite 203 • Brea, CA 92821-4056 0 (714) 672-0022 • Fax (714) 672-0331 0 www,lS1cpaa,QuM
Lan -e
Soil
LLS
luorLLP
ghard
CEFIIFIEO %1BLIC ACLgIN1ANT5
To the Honorable Mayor and Members of the City Council
City of La Quinta, Califomia
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying introductory section, the combining
and individual fund statements, schedules and statistical tables are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The accompanying combining and
individual nonmajor fund financial statements and schedules 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 accompanying
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.
October 31, 2007
I
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, 2007. 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 $496,744,000 (net assets). Of this amount, $104,554,000
(unretracted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
• The ,governmental activities total net assets increased by $51,589,000 and the
Business -Type total net assets decreased by $103,000 attributable to 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 $202,004,000, a decrease of $14,193,000
in comparison with the prior year. Approximately 70 percent of this total amount,
$142,403,000, is available for spending at the government's discretion (unreserved fund
balance).
• At the end of the current fiscal year, the operations/projects/transfers designations
comprised $29,271,000 or 82 percent of total general fund budgeted expenditures.
0 • The City of La Quinta's total debt decreased by $5,787,000 during the current fiscal
year frlom $253,265,000 to $247,478,000 through normally scheduled debt service
payments.
Overview of the Financial Statements
Q 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
D statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
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3
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 intergovernmental
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, planning and
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
they function for all practical purposes as departments of the City of La Quinta,
and therefore have 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 of 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.
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0 Governmental funds
Governmental funds are used to account for essentially the same functions
1 reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund
financial statements focus on near -term inflows and outflows of spendable
1 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 government -
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 three (33) 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 bal-
ances for the general fund, one (1) special revenue fund, two (2) debt service funds
and two (2) capital project funds. These six (6) funds are considered to be major
funds. Data from the other twenty seven (27) governmental funds are combined
into a single, 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
n budgetary comparison statement has been provided for the general fund to
u demonstrate compliance with this budget.
Q The basic governmental fund financial statements can be found in the table of
contents under the heading Basic Financial Statements.
0 Proprietary funds
Proprietary funds can be broken down into enterprise and internal service funds.
a 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
a fund to account for its SilverRock Golf Course operations, which is considered to
be a major fund. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City of La Quinta's various
a 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
1 5
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.
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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 $496,744,000 at the close of the most recent fiscal year, which is
$51,486,000 greater than the previous year.
The lalrgest portion of the City of La Quinta's net assets, which remained at 66%
from 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
Govemmemal activities Busness-type activities Total
2007 2006 2007 2006 2007 2006
Current and other assets S 244,280,997 $ 241,756,724 8 (2,019,993) $ (1,152,519) $ 242,261,004 $ 240,604,205
Net assets:
Invested in capital assets,
not of related debt
300,220,033
263.559,117
42.692,025 42,075,172
342,912,068
295,634,289
Bestrictad
49,277,895
86,278,778
- -
49,277,695
85,275,775
Unrestricted
106,939,677
86,010,967
(2,385,462) (1,665,646)
104,654,115
84,345,321
Total nol assets
S 456,437,505
S 404, ,860 8
40,306,563 $ 40,409,526
S 496,744,068
$ 445,258,386
llAn additional portion of the City of La Quinta's net assets (10 percent versus 16
a 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 - $106,940,000 (24 percent) may be used to meet the government's
ongoing obligations to citizens and creditors.
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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 $2,385,000.
Governmental activities
Governmental activities increased net assets by $51,589,000 accounting for a 13
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 Bustness-type
activities activities
Total
Revenues
2007
2006 Change 2007 2006 Change
2007 2006
Change
ogram revenues
Charges for services
5.520,909
10,210,057 (4,689,148) 3,540,748 3,120,728 420,020
9,061,657 13,330,785
(4,269,128)
peretmg grants and
contributions
3,796,495
3.603,173 193,322 - - -
3.796,495 3,603,173
193.322
contnbutions 17,601,131 33,918,901 (16.317,770) - - - 17.601,131 33,918,901 (16,317,770)
ueneno avenues
transfers and restalaments
• Revenues decreased by $6,487,000 with the two largest category decreases in capital
grants and contributions ($16,318,000) and charges for services ($4,689,000). Capital
grants and contributions decreased as a result of less received from developer impact
fee collections, Quimby fee collections and interest income generated from unspent
bond capital proceeds. The charges for services decrease stemmed from decreased
building and public works licenses and fees from construction activities.
• Expenditures increased by $10,591,000 with the two largest category increases in
Public Safety ($3,659,000) and Community Services ($2,873,000). The increase in the
Public Safety costs is a result of higher police costs ($1,970,000) fire ($459,000) and
Code Compliance costs ($227,000).
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Q A transfer out of $875,000 in assets from the governmental activities to the
business -type activities which consist of land and improvements for the SilverRock Golf
course.
Expenses and Program Revenues -Government Activities
• •Expenses
O Program re�eru,
20,000,000 — 18,628,602
8 18,000,000
16,000,000 15,163,422
14,000,000 12,724.100
Diz000,odo 10,511, 74
10,000,060
8,000,000 7,736,520
6,284,342
6,000,000 4 gtl 889
4,299,453
4,000,000 3, 42,008
2,000,000 6,508
0,530
General Public safety Community Planning and Public vorks interest egense
government services development
Expenses and Program Revenues - Busine"pe Activities
O &penses
5,000,000 a Program revenues
4,520,173
4,500,000
4,000,000 3.542,565
3,500,000
3,000.000
0 2,500*010
2,000,060
1,500,000
a1,000,060
500,000
GeV
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Business -type activities
This was the second full year of operations for the SilverRock Golf fund since the
golf course began early operation in 2005.
Net assets decreased by $ (103,000) from the net effects of a transfer of assets
from the governmental activities of $875,000 and an operating loss of $(978,000).
Charges for services primarily consisted of green fees and totaled $3,541,000
which was $420,000 greater than the previous year with golf course expenses of
$4,520,000 ,which was $3,000 less than the previous year.
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 $202,004,000, a decrease of $13,494,000
in comparison with the prior year. Approximately 70 percent of this total amount
($142,404,000) constitutes unreserved, which is available for spending at the
government's discretion. The remainder of fund balance ($59,600,000) is reserved or
designated to indicate that it is not available for new spending because it has already
been committed to 1) to pay debt service ($24,299,000), 2) to advance funds to other
funds ($32,421,000), or 3) for a variety of other restricted purposes ($2,880,000).
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 $56,252,000, while
total fund balance reached $84,641,000. 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 238 percent of the total budgeted
expenditures.
The City of La Quinta's general fund balance increased by $8,372,000 during the current
fiscal year. Key factors in this growth are as follows:
• An increase of $2,599,000 in taxes over the final budget, of which $1,848,000 was in
property taxes, $209,000 was in sales taxes (1 percent of the 7.75 percent collected
going to the City), $373,000 was in transient occupancy taxes with the balance in other
taxes.
10
• An increase of $1,462,000 in licenses and permits over the final budget, which
represents increased development and building activity in the Building and Safety
department.
• An increase of $1,201,000 in interest income over the budget, which is a result of higher
than budgeted interest rates and larger amounts under investment.
Actual expenditures were $3,775,000 less than the final budget. Divisions that were
under budget for the year were Police ($923,000), Fire ($423,000), Planning &
Development Administration ($509,000), and the Current Planning Division ($488,000).
Redevelopment Agency Project Area 1 Debt Service Fund
The Redevelopment Agency Project Area 1 Debt Service Fund is used to accumulate
resources, primarily property taxes, to pay debt service.
The fund balance increased by $11,838,000 during the current fiscal year. The key factor
8 in this Growth was the increase in tax increment property tax generated in the project
area, an increase in interest income based upon higher available cash balances and
higher interest rates, and not having to pay to the State of California an Educational Relief
Augmentation Fund (ERAF) payment.
2004 Low/Mod Bond Fund
The 2004 Low/Mod Bond Fund is used to account for the promotion of low and moderate
income capital projects in the La Quinta Redevelopment Project Area 1 and 2. The funds
were obtained by issuing a bond in 2004 with available fund balances representing
unspent bond proceeds. The fund balances decreased by $18,564,000 during the Fiscal
Year which represented the Agencies efforts to increase the number of these housing
units in the City. The two primary projects funded during the year were the Vista Dunes
Courtyard Homes ($14,637,000) and the Ave 4e and Adams Apartments ($1,786,000).
Low/Moderate Income Housing PA No. 2 Fund
The LoW/Moderate Income Housing No. 2 Fund is used to account for the promotion of
low and moderate income capital projects in the La Quinta Redevelopment Project Area 2
from 20% of the tax increment property tax generated in this Project Area.
During the Fiscal Year this fund purchased twenty acres (20) for $19,966,000 which
represented the major expenditures in this Fund.
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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 Budaetary Hiahliahts
During the year there was a $2,301,000 increase in appropriations and transfers out '
between the original ($33,194,000) and final amended budget ($35,495,000). Following ,
are the main components of the increase:
• $380,000 supplemental appropriation to the planning & administration division for '
additional planning contract services; and,
• $1,163,000 in additional transfers out for capital projects funded by the General Fund.
Which included the Ave 54 Airport Blvd Rehabilitation Program ($954,000) and the '
Embassy Suites Transient Occupancy Tax Rebate ($150,000).
The increase was possible because of additional anticipated revenues. '
Capital Asset and Debt Administration t
Capital assets
The City of La Quinta's investment in capital assets for its governmental and business- '
type activities as of June 30, 2007, amounts to $521,331,000 (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 increased this fiscal year from the purchase '
of properties which exceeded the depreciation expenses.
The following chart lists the asset categories for governmental and business like '
activities net of depreciation.
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City of La Quintal Capital Assets (net of depreciation)
Governmental Business -type
activities activities Total
2007 2066 2007 2006 2007 2006
Land 93ZZi .
lur
Buildings n
improvements 28,033,383 28,682,380 6,021,704 6,234,276 34,055,087 34,916,656
770—lpment ana furniture
Vehicles n ras ru ruc ure
ons ruc ion in progress
Total
Major capital asset events during the current fiscal year included the following:
Governmental activities
• Recording the new expansion of the Eisenhower Bridge, which totaled $4,103,000;
• Recording the land, park buildings and equipment in the park equipment and facility
internal service fund, which totaled $656,000;
• Recording infrastructure improvements, including developer dedications of
$8,918,000, to street improvements, street right of way, street sidewalks and curbs and
gutters, and street median, which total $24,356,000;
• Began the construction phase of the City Hall and Museum expansion,
• Recording the transfer of assets, which was primarily land from the Redevelopment
' Agency to the SilverRock Golf Enterprise Fund had a cost basis of $875,000.
Busin$ss-type activities
• Recording improvements to the golf course, temporary clubhouse, and the
maintenance building for the first golf course at SilverRock Resort totaled $875,000.
Additional information on the City of La Quinta's capital assets can be found in Footnote 6
to the financial statements.
Long-term debt
a At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $246,652,000. $145,170,000 of this debt amount represents bonds
secured solely by specified revenue sources (i.e., tax allocation bonds); while,
a $93,645,000 of the debt represents revenue bonds that will be paid from pledged tax
increment property tax housing funds. In addition, $826,000 in capital equipment leases
are outstanding in connection with SilverRock Golf Course.
1 13
City of La Quinta Outstanding Debt
Govemmental
Debt type:
Capital leases
Business -type
The City of La Quinta's total outstanding debt decreased by $5,787,000 during the fiscal
year.
Additional information on the City of La Quinta's long-term debt can be found in notes 7
and 8 of the financial statements.
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta's budget for the 2008
fiscal year:
• The City of La Quinta had a 2.6 percent unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.7 percent and the statewide
unemployment rate of 5.2 percent.
During the last ten years, the City of La Quinta has been in a growth phase with net
assessed values increasing from $2.32 billion in FY 97/98 to $11.95 billion or over 514
percent.
• During the current fiscal year, the general fund net income was $7,610,000.
$1,478,000 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 07/08.
Reguests 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.
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CITY OF LA QUINTA
STATEMENT OF NET ASSETS
JUNE 30, 2007
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Loans and notes
Accrued interest
Internal balances
Prepaid costs
inventories
Deposits
Due from other governments
Deferred charges
Restricted assets:
Cash with fiscal agent
Capital assets not being depreciated
Capital assets, 'net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Deposits payable
Due to other governments
Retentions payable
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in morethan one year
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Public safety
Planning and development
Community Services
Public works
Debt service
Unrestricted
Total Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ 150,403,664 $ 97,577 $ 150,501,241
282,452
30,900
313,352
3,234,536
3,234,536
13,066,117
13,066,117
774,980
250
775,230
2,466,003
(2,466,003)
19,751
1,865
21,616
65,192
65,192
211,953
260,000
461,953
7,575,817
226
7,576,043
4,753,409
4,753,409
61,492,315
-
61,492,315
378,457,741
36,458,147
414,915,888
99,355,623
7,059,726
106,415,349
722,094,361
41,497,880
763,592,241
9,940,774
334,896
10,275,670
298,622
1,412
300,034
4,239,107
4,239,107
2,502,217
25,000
2,527,217
573,495
-
573,495
1,843,513
-
1,843,513
494,275
4,161
488,436
6,711,341
371,444
7,082,785
239,063,512
454,404
239,517,916
265,666,856
1,191,317
266,848,173
300,220,033
182,715
21,246,291
1,031,838
26,597,703
219,348
106,939,577
42,692,025
(2,385,462)
342,912,058
182,715
21,246,291
1,031,83E
26,597,703
219,348
104,554,115
$ 466,437,606 $ 40,306,663 $ 496,744,068
See Notes to Financial Statement 15
CITY OF LA QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2007
Program Revenues
,
Operating
Capital
Charges for
Contributions
Contributions
Expenses
Services
and Grants
and Grants
,
Functions/Programs
Primary Government:
Governmental Activities:
General government
$ 6,284,342
$ 60,530
$ -
$
'
Public safety
Planning and development
12,724,100
7,736,520
2,659,515
169,643
353,202
29,289
Community services
4,299,453
387,065
327,166
1,902,631
9,699
2,391,193
'
Public works
Interest on long-term debt
10,511,874
15,163,422
2,244,156
-
1,213,496
_
15,170,950
Total Governmental Activities
56,719,711
5,520,909
3,796,495
17,601,131
,
Business -Type Activities:
Golf Course
4,520,173
3,540,748
_
_
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Total Business -Type Activities
4,520,173
3,540,748
-
Total Primary Government
$ 61,239,884
$ 9,061,657
$ 3,796,495
$ 17,601,131
'
General Revenues:
Taxes:
Property taxes, levied for general purpose
'
Tax increment
Sales taxes
Transient occupancy taxes
'
Franchise taxes
Business licenses taxes
Other taxes
Use of money and property
'
Motor vehicle in lieu, unrestricted
Other
Transfers
,
Total General Revenues and Transfers
Change in Net Assets
'
Net Assets at Beginning of Year
Restatement of Net Assets
'
Net Assets at End of Year
r
See Notes to Financial Statement 16 1
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and
Net (Expenses) R venues and Changes
in Net Assets
P Imary
Governmental
Business -Type
DActivities
Activities
Total
D$
(6,223,812)
$ -
$ (6,223,812)
(9,682,094)
-
(9,682,094)
(7,230,012)
-
(7,230,012)
381,436
381,436
8,116,728
8,116,728
(15,163,422)
-
(15,163,422)
D(29,801,176)
(29,801,176)
D(979,425)
(979,425)
(979,425)
(979,425)
D(29,801,176)
(979,426)
(30,780,601)
D
4,999,051
4,999,051
42,583,031
42,583,031
8,896,716
-
8,896,716
5,448,361
5,448,361
D
1,259,985
_
1,259,985
307,032
-
307,032
872,753
-
872,753
D
11,854,951
1,817
11, 856,768
3,291,055
3,291,055
2,052,246
2,052,246
(874,645)
874,645
80,690,536
876,462
81,566,998
D50,889,360
(102,963)
50,786,397
404,848,882
40,409,526
445,258,408
D699,263
-
699,263
$
466,437,505
$ 40,306,563
$ 496,744,068
D
D
D
DSee Notes to Financial Statement 17
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30.2007
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other governments
Retentions payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Unreserved, reported in:
General Fund
Special revenue funds
Capital projects funds
Debt service funds
Total Fund Balances
Total Liabilities and Fund Balances
Revenue Fund Capital Projects Funds
Low/Moderate 2004
Income Housing Capital Low/Mod
General PA No. 2 Improvement Bond
$ 62,370,184 $ 10,020,157 $ 4,949,556 $
8,819
3,234,536
412,365
11,774
5,903
5,856,210
18,780
27,597,329
8,500
9,500,000
12,875
1,504
60,556
194,294
315,271
- - 44,469,386
$ 99,515,900 $ 19,603,592 $ 5,459,131 $ 44,469,386
$ 6,416,714 $ 26,636 $ 3,384,130 $
296,895 _ _
2,185,846 84,826
12,797 _
75,391 1,768,122
5,887,737 91500,000 40,001
- - 182,052 _
- 6,186,049
14,875,380 9,526,636 5,459,131 6,186,049
779,530 _
11,774 1,504
27,597,329
56,251,887
- 10,075,452 -
- 38,283,337
84,640,520 10,076,956 - 38,283,337
$ 99,515,900 $ 19,603,592 $ 5,459,131 $ 44,469,386
See Notes to Financial Statement 18
CITY OF LA QUINTA
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BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2007
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other,funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other governments
Retentions payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved.
Reserved for encumbrances
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Unreserved, reported in:
General Fund
Special revenue funds
Capital projects funds
Debt service funds
Total Fund Balances
Debt Service Funds
Redevelopment
Redevelopment
Other
Total
Agency
Agency
Govemmental
Governmental
PA No. 1
PA No. 2
Funds
Funds
$ 33,187,356
$ 6,810,617
$ 28,090,490
$ 145,428,370
-
70,839
282,452
3,234,536
-
3,666,117
13,066,117
133,761
61,246
133,075
753,322
-
-
6.473
19,751
_
_
206,050
211,953
335,329
244,927
763,194
7,675,487
-
6,186,049
6,204,829
-
4,823,543
32,420,872
17,022,929
61,492,315
$ 33,656,446 $ 13,302,839 $ 54,682,710 $ 270,690,004
$ - $ - $ 86,566 $
9,914,046
-
296,895
231,545
2,502,217
168,201 392,497 -
573,495
_ _
1,843,513
- 1,484,472
16,912,210
- 302,223
494,275
- - 18,780
6,204,829
12,100,001 10,000,000 7,854,868
29,954,869
12,268202 10,392,497 9,978,454 68,686,349
21,388,244 2,910,342
779,530
6,473 19,751
2,081,645 2,081,645
4,823,543 32,420,872
- 24,298,586
_ - 56,251,887
17,695,100 27.770,552
20, 086, 861 58, 370,198
10,634 10,634
21,388,244 2,910,342 44,704,256 202,003,655
Total Liabilities and Fund Balances $ 33,656,446 $ 13,302,839 $ 54,682,710 $ 270,690,004
See Notes to Financial Statement 1 g
CITY OF LA QUINTA
GOVERNMENTALFUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2007
Fund balances of governmental funds $ 202,003,655 '
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets net of depreciation have not been included as financial resources '
in governmental fund activity:
Infrastructure
390,911,723
'
Other capital assets
137,571,588
Accumulated depreciation
(67,160,261)
Long-term debt and compensated absences that have not been included
'
in the governmental fund activity:
Bonds payable
(238,815,000)
,
Unamortized bond premium/discount
877,230
Unamortized cost of issuance
4,753,409
Other long-term liabilities
(7,103,029)
'
Compensated absences
(729,886)
Accrued interest payable for the current portion of interest due on long-term debt
has not been reported in the governmental funds.
(4,239,107)
'
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
16,912,210
'
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
'
The assets and liabilities of the internal service funds must be added to the
statement of net assets.
21,454,973
Net assets of governmental activities
$ 456,437,505
I` J
J
See Notes to Financial Statement 20 1
CITY OF LA QUINTA
1
8
I
0
I
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENM FUNDS
YEAR ENDED JUNE 30, 2007
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Pass -through agreement payments
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital assets
0 Total' Other Financing Sources
(Uses)
aNet Change in Fund Balances
Fund Balances, Beginning of Year, as
previously reported
URestatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
Revenue Fund
Capital Projects Funds
Low/Moderate
2004
Income Housing
Capital
Low/Mod
General
PA No. 2
Improvement
Bond
$ 21,594,996
$ 5,194,289
$ _
$
2,788,882
7,400,101
4,056,049
151,785
-
1,544,190
-
5,188,103
343,073
2,706,511
337,521
-
-
14,838
-
292,415
-
59,409
39,020,416
5,596,771
4,348,464
2,706,511
5,246,378
15,634,761 -
1,384,466 20,513,194 4,705,800
2.994,586 - -
5,019,859 -
- 36,311,020
182,491
65,963
30,280,050 20,513,194 36,559,474 4,705,800
8,740,366 (14,916,423) (32,211,010) (1,999,289)
308,686 16,000,000 32,211,010
(1,439,506) (3,127,770) _ (16,564,295)
(1,130,820) 12,872,230 32,211,010 (16,564,295)
7,609,546 (2,044,193) - (18,563,584)
76,269,124 12,121,149 56,846,921
761,850 -
77,030,974 12,121,149 56,846,921
$ 84,640,520 $ 10,076,956 $ $ 38,283,337
See Notes to Financial Statement
21
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2007
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Pass -through agreement payments
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as
Previously reported
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
See Notes to Financial Statement
Debt Service Funds
Redevelopment Redevelopment
Agency Agency
PA No. 1 PA No. 2
Other
Governmental
Funds
Total
Governmental
Funds
$ 42,029,504
$ 20,777,158
$ 10,507,377
$ 100,103,324
877,191
877.191
-
2,788,882
3,347,821
14,803,971
913,193
1,064,978
277,604
1.821,794
1,054,152
556,329
2,844,182
12,692,350
-
-
337,521
-
59,994
74,832
-
5,018,025
5,310,440
-
987,611
1,047,020
43,083,656
21,333,487
24,832,998
140,922,303
506,056 184,484 213,781
6,150,699
- - 50,732
15,685,493
2,390,717
28,994,177
1,032,716
4,027,302
1,735,648
6,755,507
109,397
36,420,417
3,395,449
205,000
1,865,000 5,647,940
8,678,900
1,314,785
5,000,329 15,059,977
19,044,700
17,453,875
36,498,575
31,625,105 19,158,144 12,398,320 155,240,087
11,458,551 2,175,343 12,434,678 (14,317,784)
4,448,138
(4,068,349)
1,954,560
(1,954,560)
6,032,182
(33,800,096)
60,954,576
(60,954,576)
'
124,097
124,097
379,789
(27,643,817)
124,097
'
11,838,340
2,175,343
(15,209,139)
(14,193,687)
'
9,549,904
-
734,999
-
59,975,982
(62,587)
215,498,079
699,263
'
9,549,904
734,999
59,913,395
216,197,342
'
$ 21,388,244 $
2,910,342
$ 44,704,256
$ 202,003,655
22
I
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 JWNE 30, 2007
1
Net change in fund balances - total governmental funds
$ (14,193,687)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental 'funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in, the current period:
Capital outlay
61,507,862
Depreciation expense
(4,209,852)
Repayment of jprincipal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
5,426,098
AAccrued
interest for long-term liabilities. This is the net change in accrued interest
for the current period.
82,253
a
Compensated absences expenses reported in the Statement of Activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
(121,620)
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
1,846,249
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
'
governmental activities.
552,057
Change in net assets of governmental activities
$ 50,889,360
I
I
I
0
0
See Notes to Financial Statement
23
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1, as restated
Resources (Inflows):
Taxes
Licenses and permits
Intergovernmental
Contributions from property owners
Charges for services
Use of money and property
Fines and forfeitures
Other
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General Government
Legislative
City Manager
Development services
Management services
City Clerk
Fiscal services
Central services
Total general government
Public Safetv
Police
Building & safety admin
Building
Code compliance
Animal control
Civic Center Building
Fire
Emergency services
Total public safety
Community Services
Community services admin
Senior center
Park & recreation
Park maintenance
Total community services
Planning and Development
Administation
Current planning
Total planning and development
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 77,030,974 $ 77,030,974 $ 77,030,974 $
18,695,950
1,327,100
7,421,730
938,700
3,987,300
306,500
332,542
$110,040,796
$ 862,350
1,005,586
1,585,500
1,093,904
546,604
770,921
315,879
6,180,744
9,455,117
343,212
967,210
906,277
386,980
480,148
4,214,373
182,949
16,935,266
1,058,779
388,971
173,196
1,210,810
2,831,756
1,044,249
850,976
1,895,225
18,995,879
1,327,100
7,743,650
115,000
1,599,600
3,987,300
314,087
5,500
332,542
$111,451,632
$ 906,250
1,008,289
1,652,000
916,267
548,271
782,174
429,517
6,242,768
9,455,117
297,370
1,152,255
918,672
417,381
485,433
4,284,545
184,216
17,194, 989
1,187,481
397,857
187,316
1,249,685
3,022,339
1,424,252
957,317
2,381,569
21,594,996 2,599,117
2,788,882 1,461,782
7,400,101
(343,549)
151,786
36,785
1,544,190
(55,410)
5,188,103
1,200,803
337,521
23,434
14,838
9,338
308,686
(23,856)
$116,360,076
$ 4,908,444
$ 734,131
$ 172,119
895,591
112,698
1,405,639
246,361
643,485
272,782
490,849
57,422
738,103
44,071
338,580
90,937
5,246,378
996,390
8,531,775
923,342
266,984
30,386
1,276,504
(124,249)
807,484
111,188
326,195
91,186
443,670
41,763
3,861,487
423,058
120,662 63,554
15,634,761 1,560,228
1,174,940
342,491
170,748
1,306,407
2,994,586
914,988
469,478
1,384,466
12,541
55,366
16,568
(56,722)
27,753
509,264
487,839
997,103
7J
1
[I
1
1
1
1
See Notes to Financial Statement 24 1
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2007
B
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Public Works
Administration
$ 477,975
$ 546,934
$ 397,992
$ 148,942
Development services
927,341
1,066,679
926,063
140,616
Maintenanceloperations - Street
1,395,343
1,473,513
1,308,480
165,033
Maintenance/operations- Lighting
967,071
1,132,722
1,047,228
85,494
Traffic
373,542
376,183
189,800
186,383
Construction management
684,445
369,729
1,150,296
(780,567)
Total public works
4,825,717
4,965,760
5,019,859
(54,099)
Transfers to other funds
525,454
1,687,564
1,439,506
248,058
Total Charges to Appropriations
33,194,162
35,494,989
31,719,556
3,775,433
aBudgetary
Fundl Balance, June 30
$ 76,846,634
$ 75,956,643
$ 84,640,520
$ 1,133,011
0
I
I
1
I
I
I
U
I
F
See Notes to Financial Statement 25
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOWIMODERATE INCOME HOUSING PA NO.2
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Other financing sources
Loan repayments
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$12,121,149 $12,121,149
4,870,400
275,300
$17,266,849
5,401,800
441,000
12,641,903
100,000
16,000,000
$46,705,852
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$12,121,149 $
5,194,289 (207,511)
343,073 (97,927)
- (12,641,903)
59,409 (40,591)
16,000,000
$ 33,717,920 $ (12,987,932)
$ 741,534
$25,541,534
$20,513,194
$ 5,028,340
1,954,642
7,091,916
3,127,770
3,964,146
2,696,176
32,633,450
23,640,964
8,992,486
$14,570,673
$14,072,402
$10,076,956
$ (3,995,446)
J
h
11
1
C
1
See Notes to Financial Statement 26 1
CITY OF LA QUINTA
ll
U
0
8
I
1
I
STATEMENT OF NET ASSETS
PROPRIETARY (FUNDS
JUNE 30, 2007
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Inventories
Deposit
Due from other governments
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Deposits payable
Unearned revenue
Total Current Liabilities
Noncurrent:
Advances from other funds
Compensated absences
OCapital leases payable
Total (Noncurrent Liabilities
UTotal !Liabilities
0 Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
Business -Type
Activities -
Enterprise Funds
Governmental
Activities -
Golf
Internal
Course
Service Funds
$ 97,577 $ 4,975,294
30,900 -
250 21,658
1,865 -
65,192
250,000 -
226 330
446,010 4,997,282
43 ,517, 873 16,490,314_
43, 517, 873 16,490,314
$ 43,963,883 $ 21,487,596
$ 334,896 $ 26,728
1,412 1,727
25,000 -
4,161
365,469 28,455
2,466,003 -
- 4,168
825,848 -
3,291,851 4,168
3,657,320 32,623
42, 692,025 16,490,314
(2,385,462) 4,964,659
40,306,563 21,454,973
$ 43,963,883 $ 21,487,596
See Notes to Financial Statement
27
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2007
Operating Revenues:
Sales and service charges
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other
Total Operating Expenses
Operating Income (Loss)
Non -operating Revenues (Expenses):
Interest revenue
Interest expense
Gain (loss) on disposal of fixed assets
Total Non -operating
Revenues(Expenses)
Income (Loss) Before Contributions and Transfers
Capital contributions
Transfers in
Changes in Net Assets
Net Assets:
Beginning of Year
Changes in Net Assets
End of Fiscal Year
Business -Type
Activities -
Enterprise Funds
Governmental
Activities -
Golf
Internal
Course
Service Funds
$ 3,540,748 $ 1,211,222
3,540,748 1,211,222
68,320
87,166
-
71,491
-
109,665
3,720,778
107,554
-
125,056
614,648
695,068
60,058
31,722
4,463,804 1,227,722
(923,056) (16,500)
1,817 238,164
(56,369) -
1,327
(54,552) 239,491
(977,608) 222,991
- 960,593
874,645 -
(102,963) 1,183,584
40,409,526 20,271,389
(102,963) 1,183,584
$ 40,306,563 $ 21,454,973
See Notes to Financial Statement
28
I
CITY OF LA QUINTA
STATEMENT OF' CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2007
Business -Type
Activities -
Enterprise
Funds Governmental
8 Cash Flows front Operating Activities:
Cash received from customers and users
8 Cash paid to supplies for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows frorn Non -Capital
Financing Activities:
'Repayment made to other funds
Advance from other funds
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows frorp Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows front Investing Activities:
Interest received'
Net Cash Provided (Used) by
Investing Activities
Net Increase(Decrease)In Cash
and Cash Equivalents
QCash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
v
I
I
Activities -
Golf
Internal
Course
Service Funds
$ 3,507,675
$ 1,211,221
(3,876,124)
(389,649)
(80,525)
(74,358)
(448,974)
747,214
(875,674)
1,765,042
889,368
(101,094)
(356,856)
(56,369) -
12,850
(413,225) (88,244)
1,706 234,710
1,706 234,710
28,875 893,680
68,702 4,081,614
$ 97,577 $ 4,975,294
See Notes to Financial Statement
29
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2007
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating Income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid expense
(Increase) decrease in inventories
(Increase) decrease in due from other governments
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in unearned revenue
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds
Increase of assetslfiabilities resulting from the initiation
of a capital lease
Activities -
Enterprise
Funds
Governmental
Activities -
Golf
Internal
Course
Service Funds
$ (923,056) $ (16,500)
614,648
695,068
(18,993)
-
-
50,724
26,311
-
(226)
(330)
(121,599)
14,689
(12,205)
(605)
(13,854)
-
-
4,168
474,082
763,714
$ (448,974) $ 747,214
$ $ 960,593
168,308
See Notes to Financial Statement 30
CITY OF LA QUINTA
STATEMENT OFfIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2007�
Assets:
Cash and investments
Receivables:
Taxes
interest
Total Assets
Liabilities:
Deposits
Total Liabilities
I
I
0
a
0
I
See Notes to Financial Statement 31
Agency
Funds
$ 908.482
23,317
3,736
$ 935,535
$ 935,535
$ 935,535
THIS PAGE INTENTIONALLY LEFT BLANK
32
I
CITY OF LA QUINTA
1 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
1 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 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.
1 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,
1 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
1 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.
1 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
1 data of the primary government.
The following organizations are considered to be component units of the City:
1 La Quinta Redevelopment Agency
The La Quinta Redevelopment Agency (Agency) has established two redevelopment
1 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
1 the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These
plans provide for the elimination of blight and deterioration, which was found to exist
in the project areas. Although the Agency is legally separate, it is reported as if it
were part of the City because the City Council also serves as the governing board of
1 the Agency. Separate financial statements of the Agency can be obtained at City
Hall.
0
1 33
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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. Government -Wide and Fund Financial Statements
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.
Government -wide Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of
a given function or segment are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. 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. Taxes and other items
not properly included among program revenues are reported instead as general
revenues.
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements, rather than reported as expenditure.
Proceeds of long-term debt are recorded as a liability in the government -wide
financial statements, rather than as 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 expenditure.
34
City of La Ouinta
Notes to Financial Statements (Continued)
Note 1: 'Summary of Significant Accounting Policies (Continued)
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis
a 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.
o
Fund financial statements for the 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 components units. Fiduciary funds of the
City primarily represent assets held by the City in a custodial capacity for other
individuals or organizations.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government -wide Financial Statements
rThe
government -wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the
proprietary fund and fiduciary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider have been met.
Governmental Funds
In the fund financial statements, governmental funds are presented using the
modified-accural 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 accured for the reporting period. The City uses
a a 30 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
D recognized as revenues in the period in which they are earned (i.e., the related
goods or services are provided). Locally imposed delivered 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.
a Government -mandated and voluntary non -exchange transactions are recognized as
revenues when all applicable eligibility requirements have been met.
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1 35
City of La Quinta
Notes to Financial Statements (Continued)
Note 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 other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from unrestricted
resources.
Proprietary Funds
The City's enterprise and 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 proprietary
fund financial statements, rather than reported as expenditures. Proceeds of
long-term debt are recorded as a liability in the proprietary fund financial statements,
rather than as an other financing source. Amounts paid to reduce long-term
indebtedness of the proprietary funds are reported as a reduction of the related
liability, rather than as expenditures.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the Enterprise Funds are
36
City of La Quints
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
charges to customers for sales and services. Operating expenses for Enterprises
Funds include the cost of sales and services, administrative expenses and
depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
Private -sector standards of accounting and financial reporting issued prior to
December 1989, generally are followed in both the government -wide and proprietary
fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments
also have the option of following subsequent private -sector guidance for their
D business -type activities and enterprise funds, subject to this same limitation. The
government has elected not to follow subsequent private -sector guidance.
Fiduciary Funds
The City's fiduciary funds are agency funds. Agency funds are custodial in nature.
Assets equal liabilities. Agency funds are presented using the accrual basis of
accounting.
d. Major Funds, Internal Service Funds and Fiduciary Fund Types
The City's major governmental funds are as follows:
General Fund — This fund is the primary fund of the City and 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.
Low / Moderate Income Housing — Project Area No. 2 Fund — This fund is used to
account for the required 20% set aside of property tax increments that is legally
restricted for increasing and improving housing for low and moderate income
households.
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 La Quints Redevelopment Agency.
a
2004 Low / Mod 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. 1 and Project Area No. 2.
Redevelopment Agency Proiect Area No. 1 - Debt Service Fund — This debt service
U
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.
0
Redevelopment Agency Project Area No. 2 - Debt Service Fund — This Debt service
fund is used to account for the accumulation of resources for the payment of debt
service for bond principal, interest and trustee fees for Project Area No. 2.
4
The City's major proprietary fund is as follows:
Course — To account for the activities of the SilverRock Golf Resort.
aGolf
1 37
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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 for
computer equipment, maintenance, and services to support information systems
within the City. Costs are reimbursed by the benefiting departments.
Park Ecuipment 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.
e. Assets, Liabilities and Net Assets or Equity
Investments
For Financial reporting purposes, investments are adjusted to their fair value.
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. Some investments are valued on an unamortized cost basis. For these
investments, there is no material difference from fair value.
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.
Cash and 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 fund's 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 proprietary
funds is considered cash and cash equivalents.
Inventory
Inventory is valued at cost using the first in I first out (FIFO) method. The City uses
the consumption method of accounting for inventories.
CW
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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.
e 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.
0 Capital Assets include public domain (infrastructure) 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 proprietary funds. Depreciation is charged as an
expense against operations and accumulated depreciations is reported on the
respective balance sheet.
The following schedule summarizes capital asset useful lives:
Buildings and improvements 10-30 years
Equipment and furniture 3-20 years
Vehicles 5-10 years
Infrastructure 10-50 years
Software 5-10 years
Compensated Absences
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
a 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
a unused sick leave. This will occur upon the completion of ten years of continuous
employment.
Fund Balance
0 in the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted
oby outside parties for use for a specific purpose.
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1 39
City of La Quinta
Notes to Financial Statements (Continued)
U. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds. The City manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department or fund are approved by
City Council. Additional appropriations in the amount of $254,404,081 were made
during the year. Prior year appropriations lapse unless they are approved for
carryover into the following fiscal year. Expenditures may not legally exceed
appropriations at the department level.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods
and services. These commitments are recorded for budgetary control purposes in
the General, Special Revenue, and similar governmental funds. Encumbrances
outstanding at year-end are reported as a reservation of fund balance. They
represent the estimated amount of the expenditure ultimately to result if unperformed
contracts in process at year end are completed. They do not constitute expenditures
or estimated liabilities.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
b. At June 30, 2007, the following funds had deficit fund balances:
Capital Projects Funds
Parks and Recreation (1,853,442)
Civic Center (3,031,324)
Library Development (2,025,431)
Fire Facility (944,671)
Ctf,
City of La Quints
Notes to Financial Statements (Continued)
Note 2:
Note 3:
Stewardship, Compliance and Accountability (Continued)
c. Excess of expenditures over appropriations areas follows:
Expenditures for the year ended June 30, 2007, exceeded the appropriations of the
General Fund and major special revenue funds as follows:
General Fund:
Public Safety
Building
Community Services
Park maintenance
Public Works
Construction management
Budget
Actual
Variance
$ 1.152,255
$ 1,276,504
$ (124,249)
1,249,685
1,306,407
(56,722)
369,729
1,150,296
(780,567)
Ill. DETAILED NOTES ON ALL FUNDS
Cash and Investments
Cash and investments as of June 30, 2007, are classified in the accompanying financial
statements as follows:
Statement of Net Assets
Cash and investments $ 150,501,241
Cash with fiscal agent 61,492,315
Statement of Fiduciary Net Assets:
Cash and investments 908,482
Total cash and investments $ 212,902,038
Cash and investments as of June 30, 2007, consist of the following:
Cash on hand $ 500
Deposits with financial institutions (2,340,173)
Investments 215,241,711
Total cash and investments $ 212,902,038
Investments Authorized by the California Government Code and the Entity's Investment
� Polic
The table below identifies the investment types that are authorized by the California
Government Code and the City's investment policy. The table also identifies certain
provisions of the California Government Code (or the City'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 City, rather than the general provisions of the
California Government Code or the City's investment policy.
41
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Authorized By *Maximum *Maximum
Investment Types Investment *Maximum Percentage of Investment In One
Authorized by State Law Policy Maturity Portfolio Issuer
Local Agency Bonds
No
5 years
None
None
U.S. Treasury Obligations
Yes
5 years
None
None
U.S. Agency Securities
Yes
2 years
None
$10 million
Banker's Acceptances
No
180 days
40%
30%
Commercial Paper
Yes
90 days
30%
$3 million
Negotiable Certificates of Deposit
No
5 years
60%
None
Repurchase Agreements
No
1 year
None
None
Reverse Repurchase Agreements
No
92 days
20% of base value
None
Medium -Term Notes
Yes
2 years
15%
$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 (LAIF)
Yes
N/A
25%
$40 million
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
Investments 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
City'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.
Maximum
Maximum Percentage
Authorized Investment Type Maturity Allowed
U.S. Treasury Obligations None None
U.S. Agency Securities None None
Bankers Acceptance 360 days None
Commercial Paper 270 days None
Money Market Mutual Funds N/A None
Negotiable Certificates of Deposit 360 days 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 City
manages its exposure to interest rate risk is by purchasing a combination of short term and
long 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.
42
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City of La Quints
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Information about the sensitivity of the fair values of the City'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 City's investments by maturity:
investmenit Type
U.S. Treasury notes
Federal agency securities:
Federal Home Loan Mortgage Corp
Federal Home Loan Bank
Federal Farm Credit Bank
Commercial paper
State investment pool
Held by bond trustee:
Money market funds
U.S. Treasury bills
Total
Remaining
Maturity (in Months)
3 Months
4 to 6
Total
or Less
Months 7 to 12 Months
$ 40,857,602
$ 40,857,602 $
- $ -
9,714,000
2,496,750
- 7,217,250
9,984,375
-
- 9,984,375
9,904,188
4,999,500
- 4,904,688
31,762,935
28,828,815
- 2,934,120
51,526,296
51,526,296
-
6,683,837
6,683,837
-
54,808,478
7,911,300
46,897,17E
$ 215,241,711 $ 143,304,100 $ 46,897,178 $ 25,040,433
1 , 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.
' The City's investment policy limits investments in commercial paper and federal agency
securities to those rated "A" or higher by Standard and Poor's (S&P) or by Moody's. As of
June 30, 2007, the City invested in,Federal Home Loan Mortgage Corp., Federal Home Loan
Bank and Federal Farm Credit Bank which were all rated "AAA" by Moody's and by S&P. All
securities were investment grade and were legal under State law. Investments in U.S.
treasuries are not considered to have credit risk and, therefore, their credit quality is not
disclosed. As of June 30, 2007, the City's investments in money market mutual funds are
rated "Aaa" by Moody's and the City's investments in external investment pools are unrated.
Concentration of Credit Risk
Q The investment policy of the City 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
a Medium -Term Notes (limited to a face value of $3 million). As of June 30, 2007, there were
no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total City investments.
III
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43
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: 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 City'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 City's investment in this pool is reported in the
accompanying financial statements at'amounts based upon the City's pro -rota share of the
fair value provided by LAIF for the entire LAIF portfolio (in relations 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.
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards for investments in participating interest earning investment
contracts, external investment pools, equity securities, option contracts, stock warrants and
stock rights that have readily determinable fair values. Accordingly, the City reports its
investments at fair value in the balance sheet. All investment income, including changes in
the fair value of investments, is recognized as revenue in the operating statement.
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 1
Collection dates December 10 and April 10
44
City of La Quinta
Notes to Financial Statements (Continued)
Note 4: Property Taxes
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
data 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
distiricts.
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, an 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.
Note 5: Notes Receivable
Outstanding
Balance at
June 30,2007
In September 1994, the Redevelopment Agency sold certain real property to
LINC Housing for $2,112,847. The property was used to construct single-family
' homes and rental units to increase the City's supply of low and moderate
income housing. The note bears interest at 6% per annum and is due in full on
June 15, 2029. $ 3,519,860
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 based on annual positive
cash flow generated by the rental of the units. All unpaid principal and interest
on the note are due fifty-five years after the completion of the project. Interest
on the note: accrues at 3% per annum. 9,500,000
Other notes receivable 46,257
OTotal notes receivable balance at June 30, 2007. $ 13,066,117
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City of La Quinta
Notes to Financial Statements (Continued)
Note 6: Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2007, is as
follows:
Beginning
Ending
Balance at
Balance at
Governmental Activities:
July 1,2006
Additions
Deletions Transfers
June 30,2007
Capital assets, not being depreciated:
Land
Right of way
$ 53,943,514 $
255,685,006
21,270,271
5,032,806
$ 136,000 $ -
$ 75,077,785
Construction -in -progress
26,827,331
36,559,473
- -
3,889,746 (16,834,914)
260,717,812
42,662,144
Total Capital Assets,
Not Being Depreciated
336,455,851
62,862,550
4,025,746 (16,834,914)
378,457,741
Capital assets, being depreciated:
Buildings and improvements
36,661,655
24,540
40,000 617,726
37,263,921
Equipment and furniture
1,907,787
180,801
- (42,493)
2,046,095
Vehicles
Infrastructure
1,141,717
113,346,331
224,821
3,994,635
56,103 56294
2,475,797 15,328,742
1,366,729
130,193,911
Total Capital Assets,
Being Deprecated
153,057,490
4,424,797
2,571,900 15,960,269
170,870,656
Less accumulated depreciation:
Buildings and improvements
7,979,275
1,267,263
16,000 -
9,230,538
Equipment and furniture
1,152,822
137,848
- -
1290,670
Vehicles
Infrastructure
756,311
58.833,149
132,710
3,367,099
44,579
2,050,865
g44 q4P
-
60,149,383
Total Accumulated
Depreciation
68,721,557
4,904,920
2,111,444
71,515,033
Total Capital Assets,
Being Depredated, Net
84,335,933 (480,123)
460,456 15,960269
99,355,623
Governmental Activities
Capita I Assets, Net
$ 420,791.784 $
62,382,427
$ 4,486,202 $ (874,645)'
$ 477,813,364
M Relates to transfers between Governmental activities and Business -Type activities.
Depreciation expense was charged to the following functions in the Statement of Activities:
General government
$ 94,697
Public safety
572,017
Planning and development
19,040
Community services
758,873
Public works
3,460,293
Total governmental activities
$ 4,904,920
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City of La IQuinta
Notes to Financial Statements (Continued)
Note 6: Capital Assets (Continued)
Capital asset activity for business -type activities for the year ended June 30, 2007, is as
follows:
Beginning Ending
Balance at Balance at
July 1, 2006 Additions Deletions Transfers June 30, 2007
Business -Type Activities:
Capital assets, not being depreciated:
Land $ 35,603,648 $ $ $ 854,499 $ 36,458,147
Total Capital Assets,
Not Being Depreciated 35,603,648 - - 854,499 36,458,147
Capital assets, being depreciated:
Buildings and improvements
Equipment and furniture
Vehid es
Software
Total Capital Assets,
Being Depredated
Less accumulated depreciation:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Accumulated
Depreciation
Total Capital Assets,
Being Depredated, Net
Govemmentel Activities
Capital Assets, Net
6,571,285 -
- 20,146 6,591,431
1,678,748 92,101
- - 1,770,849
20,348 -
- - 20,348
20,255
- - 20,255
8,290,636 92,101
337,009
232,719
379,321
373,809
6,104
4,069
6,076
4,051
728,510 614,648
7,562,126 (522,547)
20,146 8,402,883
569,728
753,130
10,173
10,127
1,343,158
20,146 7,059,726
$ 43,165,775 $ (522,547) $ - $ 874,645 " $ 43,517,873
(") Relates to transfers between Governmental activities and Business -Type activities.
Depreciation expense was charged to the following function in the Statement of Activities:
Golf Course
$ 614,648
a
47
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities
a. Changes in Long -Term Debt
The following is a summary of changes in governmental long-term liabilities of the City for
the fiscal year ended June 30, 2007:
Beginning Adjusted
Balance at Beginning Balance at Due within
July 1, 2007 Adjustments* Balance Additions Deletions June 30, 2007 one year
City
Compensated ansences 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
i
�I
608,266
$ - $ 608,266
$ 806,305 $ 680,516
$ 734,055
$ 762,030
328,311
- 328,311
- 50,000
278,311
50,000
'
776,030
- 776,030
- 132,491
643,539
143,753
'
138,985,520
2,799,480 141,785,000
- 2,640,000
139,145,000
2,795,000
5,186,627
- 5,186,627
- 755,449
4,431,178
770,558
'
6,130,000
- 6,130,000
- 105,000
6,025,000
110,000
1,850,000
- 1,850,000
- 100,000
1,750,000
1501000
t
93,370,392 2,139,608 95,510,000 - 1,865,000 93,645,000 1,930,000
$ 247,235,146 $ 4,939,088 $ 252,174,234 $ 806,305 $ 6,328,456 246,652,083 $ 6,711,341
Less: Unamortized premiumstdiscounts (877,230)
Net Long -Term Debt $ 245,774,853
Adjustments were made to remove the unamortized cost of issuance from the long -tens debt balance.
For the governmental activities, accrued employee benefits are generally liquidated by
the general fund.
b. A description of individual issues of debt (excluding defeased bonds) outstanding
as of June 30, 2007, is as follows:
Due to the Coachella Valley Association of the 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 1-10 interchange. The City has agreed to 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, 2007, the balance
payable was $278,311.
1
IJ
J
48
IJ
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum annual requirements to amortize the payable to Coachella Valley
Association of Governments as of June 30, 2007, are as follows:
Principal
2007 - 2008
$ 50,000
2008 - 2009
50,000
2009 - 2010
50,000
2010 - 2011
50,000
2011 - 2012
50,000
2012 - 2017
28,311
Totals
$ 278,311
Developer Agreement Payable
In December 1998, the City entered into a tax sharing agreement with Stamko
a 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
upon a $500,000 note at an interest rate of 8.5%. For the year ended June 30, 2007, 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, 2007, is
$643,539,
' The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2007, are as follows:
Principal Interest
2007 - 2008 $ 143,753 $ 54,701
2008 - 2009 155,972 42,482
2009 - 2010 169,230 29,224
2010 - 2011 174,584 23,870
Totals $ 643,539 $ 150,277
Tax Allocation Bonds
aAs
of June 30, 2007, the following issuances of Tax Allocation Bonds were outstanding:
Series 1994, Proiect Area No. 1
Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on
a
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
a
remaining proceeds were used to finance certain capital improvements within the
La Quinta Redevelopment Project Area No. 1.
0
1 49
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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 just 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, 2007, is $12,525,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
2007-2008
2008 - 2009
2009 - 2010
2010 - 2011
2011 - 2012
2012 - 2017
Series 1998, Proiect Area No 1
Principal
$ 1,740,000
1,865,000
2,000,000
2,145,000
2,305,000
2,470,000
Interest
$ 850,815
719,233
578,160
426,868
264,443
90,155
$ 12,525,000 $ 2,929,674
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 solely from pledged tax increment revenues of
Project Area No. 1.
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, 2007, is $15,760,000.
50
City of La'Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal
Interest
2007 - 2008
$
$ 819,520
2008 - 2009
819,520
2009 - 2010
-
819,520
2010 - 2011
-
819,520
2011 - 2012
819,520
2012 - 2017
2,835,000
3,812,250
2017 - 2022
2022 - 2027
4,455,000
5,740,000
2,805,270
1,485,900
2027 - 2032
2,730,000
143,780
Totals
$ 15,760,000
$ 12,344,800
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 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable solely from pledged tax increment revenues of
' Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033, are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and
September 1, 2019, respectively, and on each September 1 thereafter at a price
equal to the principal amount thereof plus accrued interest. There are certain
limitations regarding the issuance of parity debt as further described in the official
statement. A portion of the proceeds was used to obtain a surety agreement to
satisfy the bond reserve requirement. The principal balance of outstanding bonds at
June 30, 2007, is $6,025,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal
Interest
2007 - 2008
$ 110,000
$ 310,135
a
2008 - 2009
115,000
305,184
2009 - 2010
120,000
299,550
2010 - 2011
125,000
293,272
O
2011 - 2012
130,000
286,738
2012 - 2017
765,000
1,322,859
2017-2022
975,000
1,100,075
2022-2027
1,270,000
807,188
2027 - 2032
1,635,000
428,006
2032-2037
780,000
41,475
aTotals
$ 6,025,000
$ 5.194,482
51
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Series 2001, Proiect 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, 2007,
is $48,000,000 with an unamortized discount of $419,452.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
2007 - 2008
2008 - 2009
2009 - 2010
2010 - 2011
2011 - 2012
2012 - 2017
2017 - 2022
2022 - 2027
2027 - 2032
Totals
Series 2002, Proiect Area No 1
Principal
Interest
$
$ 2,430,720
2,430,720
2,430,720
2,430,720
2,430,720
6,755,000
11,498,975
10,525,000
9,200,475
13,455,000
6,186,173
17,265,000
2,288,753
$ 48,000,000 $ 41,327,976
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, 2007,
is $37,675,000 with an unamortized discount of $368,432.
52
t
City of La Quints
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal Interest
2007 - 2008 $ 615,000 $ 1,849,616
2008 - 2009 635,000 1,829,914
2009-2010 660,000 1,807,556
2010 - 2011 680,000 1,782,926
2011-2012 705,000 1,756,429
2012 - 2017 3,755,000 8,287,856
2017-2022 4,710,000 7,245,156
2022-2027 6,025,000 5,899,091
2027 - 2032 12,385,000 3,795,959
2032 - 2037 7,505,000 192,316
Totals $ 37,675,000 $ 34,446,819
Series 2003, Proiect Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$213,400,000 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.
Interest is payable semi-annually on March 1 and September 1 of each year,
commencing March 1, 2004. Interest payments range from 4.24% to 6.44% per
annum. The interest and principal on the bonds are payable from pledged tax
' increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032, are subject
to mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and
on each September 1 thereafter at a redemption price equal to the principal amount
thereof plus accrued interest to the redemption date.
The principal balance of outstanding bonds at June 30, 2007, is $25,185,000 with an
unamortized discount of $241,180.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal Interest
2007-2008 $ 440,000 $ 1,549,882
2008 - 2009 460,000 1,530,802
2009-2010 475,000 1,508,106
2010 - 2011 505,000 1,481,401
2011 -2012 530,000 1,453,198
2012 - 2017 3,130,000 6,763,557
2017 - 2022 4,220,000 5,636,456
2022-2027 5,730,000 4,085,165
2027-2032 7,815,000 1,926,043
2032-2037 1,880,000 60,536
OTotals $ 25,185,000 $ 25,995,146
0
53
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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, 2007, totaled
$4,431,179. 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, 2007, are as follows:
Principal
2007 - 2008
$ 770,558
2008 - 2009
785,968
2009 - 2010
801,688
2010 - 2011
817,722
2011 - 2012
834,076
2012-2017
421,166
Totals $ 4,431,178
Due to County of Riverside - Project Area No 2
Based on an agreement dated July 5, 1989, between the Agency and the County of
Riverside, until the tax increment reaches $5,00,000 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, 2007, is
$1,750,000.
The minimum annual requirements to amortize amounts due to the County of
Riverside as of June 30, 2007, are as follows:
Principal
2007 - 2008
$ 150,000
2008 - 2009
200,000
2009 - 2010
200,000
2010 - 2011
200,000
2011 - 2012
250,000
2012 - 2017
250,000
2017 - 2022
250,000
2022 - 2027
250,000
Totals $ 1,750,000
54
r
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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 $5,150,000 of term bonds. The
serial bonds will accrue interest at rates between 3.70% and 5.30% and principal
arrounts mature between October 1, 1997 and 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 at June 30,
2007, is $5,900,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal Interest
2007 - 2008 $ 360,000 $ 315,880
2008 - 2009 380,000 296,450
'
2009 - 2010 400,000 275,280
2010-2011 420,000 252,525
2011 - 2012 445,000 228,521
2012 - 2017 2,630,000 732,045
2017 - 2022 1,265,000 71,179
Totals $ 6,900,000 $ 2,171,880
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. 1 and La Quinta
Redevelopment Project Area No. 2 and to advance refund the Agency's
Redevelopment Project Areas No. 1 and 2, 1995 Housing Tax Allocation Bonds. The
2004 local agency revenue bonds were issued with issuance costs of $2,600,229
and a premium of $476,496.
a 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.
aTerm bonds maturing on September 1, 2024, September 1, 2029 and
September 1, 2034, are subject to mandatory redemption from minimum sinking fund
U
payments, in part by lot, on September 1, 2017, September 1, 2025, and September
1, 2030, respectively, and on each September 1 thereafter at a redemption price
equal to the principal amount thereof plus accrued interest to the redemption date.
0
55
City of La Quinta
Notes to Financial Statements (Continued)
Note 7:
Note 8:
Changes in Long -Term Liabilities — Governmental Activities (Continued)
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, 2007, is $87,745,000 with an unamortized premium of
$151,834.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
2007 - 2008
2008-2009
2009 - 2010
2010 - 2011
2011 - 2012
2012 - 2017
2017 - 2022
2022-2027
2027-2032
2032 - 2037
Principal
$ 1,570,000
1,615,000
1,670,000
1,740.000
11805,000
10,405,000
13,385,000
17,280,000
22,115,000
16,160,000
Interest
$ 4,356,806
4,304,994
4,243,331
4,175,131
4,099,719
19,076,413
16,001,125
12,014,144
7,061,797
1,269,975
Totals $ 87,745,000 $ 76,603,435
Changes in Long -Term Liabilities — Business -type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2007, were as
follows:
Balance at Balance at Due within
Golf Course: July 1, 2006 Additions Deletions July 1, 2007 one year
Capital leases payable $ 1,090,602 $ 164,308 $ 429,062 $ 825,848 $ 371,444
The City of La Quinta entered into several capital lease agreements for the operation of the
SilverRock Golf Resort. 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.
56
City of La buinta
Notes to Financial Statements (Continued)
Note 8: Changes in Long -Term Liabilities — Business -type Activities (Continued)
1
Obligations under capital leases are as follows:
National City Golf Finance
The present value of the minimum lease payment on golf carts was capitalized at
$211,035 using an incremental borrowing interest rate of 6.5% at the inception of
the lease. The lease is payable in 36 monthly installments of $608, which began
May30, 2005.
$ 62,794
The presentvalue of the minimum lease payment on golf equipment was capitalized
at $273,642 using an incremental borrowing interest rate of 9.68% at the inception
of the lease. The lease is payable in 60 monthly installments of $5,771, which began
May 1, 2005,
153,232
The present value of the minimum lease payment on golf equipment was capitalized
at$543,118 using an incremental borrowing interest rate of 9.0% at the inception of
the lease. The lease is payable in 60 monthly installments of $9,318, which began
January 1, 2005.
275,466
The presentvalue of the minimum lease payment on golf equipment was capitalized
at $50,911 using an incremental borrowing interest rate of 8.0% at the inception of
the lease. The lease is payable in 48 monthly installments of $1243, which began
November 28, 2004.
18,803
The present value of the minimum lease payment on golf carts was capitalized at
$26,67.4 using an incremental borrowing interest rate of 7.0% at the inception of the
lease. The lease is payable in 36 monthly installments of $824, which began
February 1, 2006.
14,771
The present value of the minimum lease payment on lawn equipment was
capitalized at $90,554 using an incremental borrowing interest rate of 6.990/6 at the
inception of the lease. The lease is payable in 36 monthly installments of $2,796,
which began October 1, 2006.
69,658
The present value of the minimum lease payment on golf equipment was capitalized
at $21,569 using an incremental borrowing interest rate of 7.5% at the inception of
the lease. The lease is payable in 48 monthly installments of $522, which began
December 1, 2005.
13,793
VGM Financial Services
The present value of the minimum lease payment on software was capitalized at
$63,525 using an incremental borrowing interest rate of 10.74% at the inception of
0
the lease. The lease is payable in 60 monthly installments of $1,373, which began
April 1, 2005.
35,982
TFG-California, L.P.
The present value of the minimum lease payment on a GPS system was capitalized
at $2&t,650 using an incremental borrowing interest rate of 7.3% at the inception of
the lease. The lease is payable in 48 monthly installments of $6,840, which began
0
November 11, 2005.
181,349
Total capital leases payable as of June 30, 2007
$ 825,848
If
D
57
City of La Quinta
Notes to Financial Statements (Continued)
Note 8: Changes in Long -Term Liabilities — Business -type Activities (Continued)
The following schedule summarizes the debt to maturity payments for capital leases:
Principal Interest
2007 - 2008 $ 371,444 $ 38,085
2008 - 2009 312,570 18,217
2009 - 2010 141,834 2,288
Total $ 825,848 $ 58,590
Note 9: 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, therefore, they are not included in the long-term liabilitys in the
accompanying financial statements. 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 following is a summary of Improvement Bonds outstanding
at June 30, 2007:
Amount
Outstanding at
Proceeds Maturity Date Interest Rate June 30, 2007
'
Assessment District No. 92-1 1,880,891 9/2/2008 5.00% - 5.40% 240,000
Assessment District No. 97-1 705,262 9/2/2018 4.10% - 5.20% 490,000
'
Assessment District No. 2001-1 2,285,000 9/2/2015 5.00%-6.60% 1,210,000
Note 10: 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, 2007, are $2,910,000.
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 issue,
but payable solely from the security.
I
I
I
58
City of La Quinta
Notes to Financial Statements (Continued)
Note 11: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2007, are as
follows:
DUE TO OTHER FUNDS
2004 Low/Mod Non -Major
Bond Governmental TOTAL
DUE FROM OTHER FUNDS
General Fund $ - $ 18,780 $ 18,780
RDA PA #2 Debt Service 6,186,049 6,186,049
Total: $ 6,186,049 $ 18,780 $ 6,204,829
The due to the General Fund and RDA PA#2 Debt Service Fund were the results of routine
interfund transactions not cleared prior to year-end.
The composition of non -current interfund receivable and payable as of June 30, 2007, are as
follows:
ADVANCES FROM OTHER FUNDS
RDA PA #1 RDA PA #2 Non -Major
Debt Service Debt Service Golf Course Governmental TOTAL
ADVANCES TO OTHER FUNDS
General Fund $ 12,000,001 $ 10,100,000 $ 2,466,003 $ 3,031,325 $ 27,597,329
Non -Major Governmental 4,823,543 4,823,543
Total: $ 12,000,001 $ 10,100,000 $ 2,466,003 $ 7,854,868 $ 32,420,872
a) As of June 30, 2007, the amount due to the General Fund from RDA PA No. 1 Debt
Service was $12,000,001. This consists of an outstanding advance of $6,000,001 loaned
to the Redevelopment Agency with repayment beginning in 2030/31 and accrued interest
at 10% per annum. The other outstanding advance of $6,000,000 loaned to the
Redevelopment Agency requires repayments beginning in 2030/31 and accrues interest
at 7% per annum.
b) As of June 30, 2007, the amount due to the General Fund from RDA PA No. 2 Debt
Serviced was $10,100,000. The advance loaned to the Redevelopment Agency with
repayment beginning in 2035/36 and accrued interest at 10% per annum.
c) As of June 30, 2007, the General Fund has advanced to the Golf Course fund
$2,466,003. The advances accrue interest at the City's investment pool rate and are to
be repaid by the golf course out of future profits.
d) In July 2002, an advance of $4,167,912 was made to provide funding for the
development of the publicly owned improvements to the La Quinta Community Park. The
advance accrues interest at the earnings rate of the City's investment pool fund. As of
June 30, 2007, the remaining balance of the advance for the La Quinta Community Park
is $1,853,442.
ae) In April 2005, another advance of $2,490,273 was made to provide funding for the
construction of the public library. The advance accrues interest at the earnings rate of
the City's investment pool fund. The remaining balance of this advance at
June 30, 2007, is $2,025,431.
f) In February 2003, the Redevelopment Agency Capital Projects — PA No. 2 Fund
advanced $1,350,131 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, 2007,
the remaining balance of the advances is $944,671.
59
City of La Quinta
Notes to Financial Statements (Continued)
Note 11: Intertund Receivables and Payables (Continued)
g) In September 2006, an advance up to $9,615,094 for the City Hall expansion from the
General Fund to the Civic Center Developer Impact Fee Fund was approved. As of
June 30, 2007 the Civic Center expansion was under construction and the amount of the
advance was $3,031,324 outstanding. The advance accrues interest that would have
been earned by the Local Agency Investment Fund.
Note 12: Intertund Transfers
TRANSFERS OUT
Low/Moderate
Income
Housing
RDA PA #1
RDA PA #2
2004
Non -Major
General Fund
PA #2
Debt Service
Debt Service
Low/MDd Bond
Govemmental
TOTAL
TRANSFERS IN
General Fund
$ -
$ -
$ -
$ -
$ -
$ 308,686
$ 308,686
RDA PA #1 bebt Service
-
RDA PA#2 Debt Service
-
1,954,560
-
-
-
4,448,138
4,448,138
Capital Improvement
1.437,506
1,173,210
-
-
16,564,295
-
13,035,999
1,954.560
32,211,010
'
LOW/Moderate Income
Housing PA#2
-
-
Non -Major Governmental
2,000
-
4,068,349
1,954,560
-
16,000,000
7,273
16,000,000
6,032,182
Total:
$ 1,439,506
$ 3,127,770
$ 4,068,349
$ 1,954,560
$ 16,564,295
$ 33,800,096
$ 60,954,576
The following describes the major transfers in and transfers out included in the financial '
statements:
a) $4,448,138 was transferred from the Low/Moderate Housing Project Area No. 1 Fund
to the RDA Project Area No.1 Debt Service Fund to pay a portion of the 2004 Series ,
A Local Agency Revenue Bond debt service.
b)
$1,173,210 was transferred from the Low/Moderate Housing Project Area No. 2 Fund
to the Capital Improvement
Fund to pay for various capital projects. $1,954,560 was
'
transferred from the Low/Moderate Housing Project Area No. 2 Fund to the RDA
Project Area No. 2 Debt Service Fund to pay a portion of the 2004 Series A Local
Agency Revenue Bond debt service.
c)
$4,068,439 and $1,954,560 was transferred from the RDA Project Area No. 1 and
2 Debt Service Funds, respectively, to the Financing Authority Debt Service Fund to
pay a portion of the 2004 Series A Local Agency Revenue Bond debt service.
,
d)
$4,336,775 was transferred to the Capital Improvement Fund from the RDA Capital
Projects — PA No. 1 Fund to fund various capital projects throughout the City.
e)
$16,564,295 was transferred to the Capital Improvement Fund from the RDA 20G4
Low/Mod Bond Fund for various capital projects funded by bond proceeds.
f)
The Transportation Fund transferred to the Capital Improvement Fund $1,597,775 to
fund various transportation related capital projects fund.
g)
$1,437,506 was transferred to the Capital Improvement Fund from the General Fund
to fund various capital projects throughout the City.
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City of La Ouinta
Notes to Financial Statements (Continued)
N. OTHER INFORMATION
Note 13: Defined Benefit Pension Plan
Plan Description
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), a cost sharing multiple -employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost -of -living adjustments and death
benefits to plan members and beneficiaries. PERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit
provisions and all other requirements are established by State statute and City ordinance.
Copies of PERS' annual financial report may be obtained from their executive office:
400 P Street, Sacramento, CA 95814.
Funding Policy
Participants are required to contribute 8% 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; the current rate is 12.856% of annual
covered payroll. The contribution requirements of plan members and the City are established
and may be amended by PERS.
Annual Pension Cost
For 2007, the City's annual pension cost of $763,527 for PERS was equal to the City's
required and actual contributions.
'
Three -Year Trend Information for PERS
'
Required Percentage
Fiscal Year Contributions Contributed
6/30/2005 $ 336,348 100 %
6/30/2006 400,631 100 %
6/30/2007 763,527 100 %
For fiscal years 2003-2007, the City of La Quinta participated in risk pooling. Risk pooling
consists of combining assets and liabilities across employers to produce large groups where
the impact of a catastrophic demographic event is shared among all employers of the same
risk pool. Participation in risk pools is mandatory for all rate plans with less than 100 active
members, Mandated participation in risk pools was initially based on the active membership
of each rate plan as of June 30, 2003. The implementation of risk pools was done in a way
that minimizes the impact on employer contribution rates. The first year in risk pools, the
a employer contribution rates are almost identical to what the rates would have been outside
pools. Future rates will be based on the experience of each pool. Pooling will reduce the
volatility of future employer rates. Mandated participation will occur on an annual basis. If on
a any valuation date, starting with the June 30, 2003, valuation, a rate plan has less than
100 active members, it will be mandated in one of the risk pools effective on that valuation
date.
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City of La Quinta
Notes to Financial Statements (Continued)
Note 14: Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Authority). The
Authority is composed of 114 California public entities and is organized under a joint powers
agreement pursuant to California Government Code §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.
Self -Insurance Programs of the Authority
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.
Claims are pooled separately between police and non -police. Costs are spread to
members as follows: the first $30,000 of each occurrence is charged directly to the
member's primary deposit; costs from $30,000 to $750,000 and the loss development
reserves associated with losses up to $750,000 are pooled based on the member's share
of losses under $30,000. Losses from $750,000 to $10,000,000, $18,000,000 to
$23,000,000, and $45,000,000 to $50,000,000 and the associated loss development
reserves are pooled based on payroll. Costs of covered claims from $10,000,000 to
$18,000,000 and $23,000,000 to $45,000,000 are currently paid by excess insurance.
Costs of covered claims for subsidence losses from $15,000,000 to $25,000,000 are paid
by excess insurance. The protection for each member is $50,000,000 per occurrence
and $50,000,000 annual aggregate. Administrative expenses are paid from the
Authority's investment earnings.
Workers Compensation
The City of La Quinta also participates in the workers' compensation pool administered
by the Authority. Each member 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. Claims are pooled separately between public safety and non-public safety. Each
member has a retention level of $50,000 for each loss and this is charged directly to the
member's primary deposit. 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 to $2,000,000 and loss development
reserves associated with those losses are pooled based on payroll. Losses from
$2,000,000 to $5,000,000 are pooled with California State Association of Counties —
Excess Insurance Authority members. Costs from $2,000,000 to $200,000,000 are
transferred to reinsurance carriers. Costs in excess of $200,000,000 are pooled among
the Members based on payroll. Protection is provided per statutory liability under
California Workers' Compensation law. Administrative expenses are paid from the
Authority's investment earnings.
In addition to coverage with the Authority, the City also carries additional coverage for
earthquake & flood and real and personal property with Pacific Insurance Co. Coverage is
$5,000,000 with a $25,000 deductible. The total insured value of real and personal property,
is $27,076,000. An excess earthquake & flood and real and personal property policy is held
with Endurance American Specialty Insurance Company. Coverage is $2,500,000 in excess
of the $5,000,000 covered by the primary policy.
62
City of La Itluinta
Notes to Financial Statements (Continued)
Note 14: Self Insurance (Continued)
Employee dishonesty, forgery and computer fraud insurance is held with Hartford Insurance
Company. Coverage is $1,000,000 with a $5,000 deductible.
1 All risk property insurance, including auto physical damage is held with Lexington Insurance
Company. Coverage is up to $10,000,000 per occurrence with various sublimits depending
on the property. The total insured value of real and personal property is $40,878,900.
During the past three fiscal years none of the above programs of protection have had
settlements or judgments that exceed pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
Note 15: 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.
Note 16: Construction Commitments
The following material construction commitments existed at June 30, 2007:
Expenditures to
Contract date as of June Remaining
' Project Narne Amount 30, 2007 Commitments
Silver Rock Resort $ 97,817,803 $ 85,025,951 $ 12,791,852
Vista Dunes Mobile Home Park 35,201,778 23,180,407 12,021,371
Dune Palms Road and Ave 48 Housing 30,153,435 2,158,488 27,994,947
Phase 2 - Jefferson Street Improvement 22,118,525 20,912,507 1,206,018
City Hall Expansion 13,308,000 6,410,338 6,897,662
Museum Expansion 3,330,500 510,719 2,819,781
Highway 111 -Adams to Jefferson 2,714,986 342,889 2,372,097
Ave 52 Bridge Improvement 2,348,876 186,074 2,162,802
Silverrock Resort Phase II Golf Course 2,106,000 421,943 1,684,057
Adams Street Bridge Improvements 1,526,000 5,709 1,520,291
Ave 52 & Ave 54 Median Island Landscaping 1,306,142 18,969 1,287,173
Sound Attenuation Hall 1,202,704 43,724 1,158,980
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City of La Quinta
Notes to Financial Statements (Continued)
Note 17: Unreserved Fund Balances
Unreserved fund balances at June 30, 2007, consisted of the following: ,
Designated for:
Emergency reserve
Cash flows
Capital improvements
Educational purposes
Economic development
Encumbrances/carryover
appropriations
Operations/projects/
transfers
Undesignated
Total unreserved fund
balances (deficit)
Low/Moderate Other '
Income 2004 Low/ Mod RDA PA #1 RDA PA #2 Governmental
General Fund Housing PA #2 Bond Debt Service Debt Service Funds Total
18,722,524 $ - $ - $ - $ - $ - $ 18,722,524
3,470,309 - - - - - 3.470,309
482,718 - _ _ _ _
718
500,000 - - 500 000
2,327,43
2,327,430 _ _ - 27:43
- - - 0
1,477,670 - - - - - 1,477,670
29,271,236
- - - - 29,271,236
- 10,075,452 38,283,337 21,388,244 2.910,342 37,792,595 110,449,970
$ 56,251,887 $ 10,075,462 $ 38,283,337 $ 21,388,244 $ 2,910,342 $ 37,792,595 $ 166,701,857
Note 18: 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 Gold 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, 2007, the Golf Course had an operating loss before contributions and transfers of
$977,608.
Note 19: Reimbursement Agreements
The City entered into a transient occupancy tax (TOT) revenue reimbursement agreement on
August 31, 2006, with Village Resort LLC, the owner of an Embassy Suites Hotel. The hotel
owner is required to remit on a monthly basis any TOT collected to the City, thirty days after
each month. Under terms of the agreement, the City shall make quarterly payments of 40%
of any TOT generated from the Hotel in an amount not to exceed $1,000,000 over a five year
period. The agreement terminates when either the $1,000,000 limit is reached or in
5 years whichever comes first. In addition, the hotel may not assign or transfer this
agreement without the City's prior written consent, which it may withhold at its discretion.
The hotel opened in November 2006. As of June 30, 2007, the City made $118,851 in
reimbursement payments to the owner leaving an outstanding balance of $881,149.
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City of Lja Quints
Notes to Financial Statements (Continued)
Note 19:Reimbursement Agreements (Continued)
The City entered into a sales tax sharing agreement on January 30, 2006, with Costco
Wholesale Corporation. Under the terms of the agreement the City shall make quarterly
payments of 40% of the any sales tax generated from the Costco in an amount not to exceed
$4,000,000 over a ten year period. Due to the reporting of sales tax information by the State
Board of Equalization to the City, the reimbursement payments by the City will lag by one
quarter. The agreement terminates when either the $4,000,000 limit is reached or in
10 years whichever comes first. The Costoo business opened in November 2006. As of
June 30, 2007, the City made $115,040 in reimbursement payments to the owner leaving an
outstanding balance of $3,884,960.
Note 20 Net Asset: and Fund Balance Restatements
Beginning fund balances had been restated as follows:
Major governmental funds:
General Fund
To record sales tax revenue in prior year
Nonmajor Governmental Funds:
State Gas Tax
To record gas tax revenue in prior year
Indian Gaming
To remove prior year revenues from fund balance
and record as unearned revenue
Total Fund Balances Restatements
Beginning net assets has been restated as follows:
Governmental activities:
To record tax revenue in prior year
To remove prior year revenues from fund balance
and record as unearned revenue
To remove deferred costs from long term liabilities and
record as assets
To record deferred costs as an asset
Total Net Asset Restatements
$ 761,850
68,269
(130,856)
$ 699,263
$ 830,119
(130,856)
(4,939,088)
4,939,088
$ 699,263
1 65
OTHER GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues (other than expendable trusts and major
capital projects) and the related expenditures that are legally required to be accounted for in a separate
fund. The City of La Quinta has the following Special Revenue Funds:
State Gas Tax Fund — To account for gasoline allocations made by the State of California. Theses
revenues are restricted by the State to expenditures for street -related purposes only.
Library Fund — To account for revenues from property tax increment dedicated library services.
Federal Assistance Fund — To account for revenues from the Community Development Block Grants
received from the Federal Government and the expenditures of those resources.
State Law Enforcements 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
serviced 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 (RCTC) 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 projects fund.
La Quinta Public Safety Officer Fund — To account for contributions to be distributed to public safety
officers disabled or killed in the line of duty.
Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of
approved artworks in a development with expenditures restricted to acquisition, installation, maintenance
and repair of artworks at approved sites.
South Coast Air Quality Fund — To account for contributions from the South Coast Air Quality
Management District. Use is limited to reduction and control of airborne pollutants.
AB 939 Fund — To account for the State mandated program to reduce waste sent to the landfills through
recycling efforts.
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.
66
ADevelopment Agreement Fund — To account for the proceeds of development agreement revenues
' collected and the related expenditures in accordance with State requirements.
Coachella Halley Violent Crime Gang Task Force - To account for the revenues and expenditures of this
valley -wide' crime prevention program with funding coming from the member agencies and grant revenue.
CAPITAL PROJECT FUNDS
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Redeveloponent Aoencv, Capital Projects Fund Area 1 — To account for the bond proceeds, interest and
other funding that will be: used for development, planning, construction and land acquisition
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,
Communityenter 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 161 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.
Redevelo ment A enc r Capital Projects Fund Area 2 - To account for the bond proceeds, interest and
other fundng that will be used for development, planning, construction and land acquisition.
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.
DEBT SEIkVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of,
govemmehtal long-term debt principal and interest.
La Ouinta 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.
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CITY OF LA QUINTA
I COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Special Revenue Funds
State
Gas
Federal
Tax
Library
Assistance SLEBG
Assets:
Pooled cash and investments
$
$ 967,878
$ $ 17,633
Receivables:
Accounts
Notes
Accrued interest
-
5,308
- 79
Prepaid costs
Deposits
_
Due from other governments
72,267
508,242
18,780
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
-
_
_ _
Total Assets
$ 72,267
$ 1,481,428
$ 18,780 $ 17,612
Liabilities and Fund Balances
Liabilities:
Accounts payable $ $ $ $
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds 18,780 _
Advances from other funds
Total Liabilities 18,780
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds _
Unreserved:
Undesignated 72,267 1,481,428 17,612
Total Fund Balances 72,267 1,481,428 17,612
Total Liabilities and Fund Balances $ 72,267 $ 1,481,428 $ 18,780 $ 17,612
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CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007 (Continued)
Special Revenue Funds
1 Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other go�emments
Advances to other funds
Restricted assets:,
Cash and investments with fiscal agents
Total Assets
1
Liabilities and Frond Balances:
'Liabilities:
Accounts payable,
Deposits payable
1 Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total 1-110bllities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for ,notes receivable
Reserved for advances to other funds
Unreserved:
aUndesignatedl
Total Fund Balances
aTotal Liabilities and Fund Balances
0
Lighting
Indian and
Gaming Landscape RCTC Quimby
$ 301,034 $ - $ - $ 9,629,035
1,169 41,291
32,611
$ 302,223 $ 32,611 $ $ 9,670,326
4,300
302,223 _
302,223 4,300
32,611 9,666,026
32,611 9,666,026
$ 302,223 $ 32,611 $ $ 9,670,326
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CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Special Revenue Funds
Arts in
Public
Public
South Coast
Safety
Places
Air Quality
AB 939
Assets:
Pooled cash and investments
$ 15,626
$ 1,062,402
$ 216,232
$ 1,374,936
Receivables:
Accounts
Notes
Accrued interest
67
4,519
911
5,996
Prepaid costs
_
Deposits
Due from other governments
Advances to other funds
31,965
Restricted assets:
Cash and investments with fiscal agents
_
_
Total Assets
$ 15,693
$ 1,066,921
$ 217,143
$ 1,412,897
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ $ $ 5,208 $
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
_
Total Liabilities
5,208
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
-
Undesignated
15,693 1,066,921 211,935 1,412,897
Total Fund Balances
15,693 1,066,921 211,935 1,412,897
Total Liabilities and Fund Balances
$ 15,693 $ 1,066,921 $ 217,143 $ 1,412,897
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CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007 (Continued)
Capital Projects
Special Revenue Funds Funds
Assets:
Pooled cash and i6vestments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
'Liabilities:
Accounts payable)
Deposits payable
Deferred revenue$
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for motes receivable
Reserved for advances to other funds
Unreserved:
aUndesignated,
Total Fund Balances
aTotal Liabilities and Fund Balances
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Low/Moderate CV Violent Redevelopment
Income Housing Development Crime Agency
PA No. 1 Agreement Task Force PA No. 1
$ 3,311,795 $ 186,173 $ 109,942 $ 71,795
9,939
3,566,117 - - -
25,937 834 490 -
2,484 - - 2,485
206,050
82,488 16,841 -
- - 3,878,873
- - 17,022,623
$ 7,204,810 $ 187,007 $ 127,273 $ 20,975,776
$ 26,609 $ - $ 6,760 $ 35,406
12,403 187,007 - -
1,484,472 -
1,523,484 187,007 6,760 35,408
2,484 2,485
2,081,645 -
- 3,878,873
3,597,197 120,513 17,059,010
5,681,326 - 120,513 20,940,368
$ 7,204,810 $ 187,007 $ 127,273 $ 20,975,776
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CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Capital Projects Funds
Parks and Civic
Infrastructure
Transportation Recreation Center
Assets:
Pooled cash and investments
$ 511,217
$ 7,143,127 $ $
Receivables:
Accounts
Notes
Accrued interest
2,476
30,410 -
Prepaid costs
_
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
_
_
Total Assets
$ 513,693
$ 7,173,537 $ $
Liabilities and Fund Balances:
Liabilities:
Accounts payable
t
Deposits payable
_
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
1,853,442
3,031,324
Total Liabilities
- - 1,853,442
3,031,324
'
Fund Balances:
Fund balances:
'
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
,
Reserved for advances to other funds
_
Unreserved:
Undesignated
513,693 7,173,537 (1,853,442)
(3,031,324)
'
Total Fund Balances
513,693 7,173,537 (1,853,442)
(3,031,324)
Total Liabilities and Fund Balances
$ 513,693 $ 7,173,537
72
I
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVPRNMENTAL FUNDS
JUNE 30,2007 (Continued)
1
Assets:
Pooled cash and investments
Receivables:
' Accounts
Notes
Accrued interest
'Prepaid costs
Deposits
Due from other governments
Advances to other funds
' Restricted assets:
Cash and investments with fiscal agents
' Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
Undesignated
Total Fund Balances
UTotal Liabilities and Fund Balances
L
I
Capital Projects Funds
Library Community Street Park
Development Center Facility Facility
$ - $ 1,050,874 $ 311,092 $ 83,087
4,509 1,397 356
$ $ 1,055,383 $ 312,489 $ 83,443
2,025,431
2,025,431
(2,025,431)
1,055,383
312,489
83,443
(2,025,431)
1,055,383
312,489
83,443
$
$ 1,055,383
$ 312,489 $
83,443
m
73
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Debt Service
Capital Projects Funds Funds
Redevelopment Financing
Fire Agency Authority Financing
Assets: Facility PA No. 2 Projects Authority
Pooled cash and investments $ - $ 1,716,384 $ $ 10,328
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
50,900
7,306
1,504
944,670
306
$ $ 2,730,764 $ $ 10,634
$ - $ 12,581 $ $ _
27,835
944,671 _
944,671 40,416
1,504
944,670
(944,671) 1,744,174 10,634
(944,671) 2,690,348 10,634
$ - $ 2,730,764 $ $ 10,634
74
I
' CITY OF LA QUINTA
COMBINING BALANCE SHEEP
'NONMAJOR GOVERNMENTAL. FUNDS
JUNE 30, 2007
Total
Governmental
Funds
Assets:
Pooled cash and Investments
$ 28,090,490
Receivables:
Accounts
70,839
'
Notes
3,556,117
Accrued interest
133,075
'Prepaid
costs
Deposits
6,473
206,050
Due from other governments
763,194
Advances to other funds
4,823,543
Restricted assets:
Cash and investments with fiscal agents
17,022,929
Total Assets
$ 54,682,710
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 86,566
Deposits payable
231,545
Deferred revenues
1,484,472
Unearned revenue
302,223
Due to other funds
18,780
Advances from other funds
7,854,868
9,978,454
Total Liabilities
Fund Balances:
Fund balances.
Reserved:
Reserved for,prepaid costs
6,473
Reserved for notes receivable
2,081,645
Reserved for advances to other funds
4,823,543
Unreserved:
OUndesignated
37,792,595
Total Fynd Balances
44,704,256
OTotal
Liabilities and Fund Balances
$ 54,682,710
D
U
0
75
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Special Revenue Funds
State
Gas
Federal
Tax
Library
Assistance
SLEBG
Revenues:
Taxes
$
$
$
$
Assessments
Intergovernmental
951,316
1,823,751
30,000
100,000
Contribution from property owners
_
_
-
Charges for services
-
Use of money and property
9,791
48,880
552
Miscellaneous
Developer participation
Loan repayments
_
_
Total Revenues
961,107
1,872,631
30,000
100,552
Expenditures:
Current:
General government
_
Public safety
_
Planning and development
-
_
Community services
-
1,002,054
Public works
804,238
-
Capital outlay
_
Debt service:
Principal retirement
Interest and fiscal charges
_
Total Expenditures
804,238
1,002,054
Excess (Deficiency) of Revenues
Over (Under) Expenditures
156,869
870,577
30,000 100,552
Other Financing Sources (Uses):
Transfers in
Transfers out
(583,348)
(510,719)
(30,000) (82,940)
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
(583,348)
(510,719)
(30,000) (82,940)
Net Change in Fund Balances
(426,479)
359,858
17,612
Fund Balances, Beginning of Year
430,477
1,121,570
-
Restatements
68,269
Fund Balances, Beginning of Year, as Restated
498,746
1,121,570
_
Fund Balances, End of Year
$ 72,267
$1,481,428
$ - $ 17,612
76
I
CITY OF LA QUINTA
' COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007 (Continued)
Special Revenue Funds
Lighting
Indian
and
t
Gaming
Landscape RCTC
Quimby
Revenues:
Taxes
$
$ - $
$
Assessments
877,191
1
Intergovernmental
183,133
46,832
Contribution from property owners
-
-
Charges for services
-
-
Use of money and property
12,613
419,462
Miscellaneous
Developer participation
1,790,492
Loan repayments
-
-
Total Revenues
195,746
877,191 46,832
2,209,954
'Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
876,274
Capital outlay
-
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
-
876,274
Excess (Deficiency) of Revenues
Over (Under) Expenditures
195,746
917
46,832 2,209,954
Other Financing Sources (Uses):
Transfers in
Transfers out
(195,746)
(46,832) (93,502)
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
(195,746)
(46,832) (93,502)
�np
YY
U
Net Change in Fund Balances
-
917
2,116,452
Fund Balances, Beginning of Year
130,856
31,694
7,549,574
Restatements
(130,856)
-
- -
Fund Balances, Beginning of Year, as Restated
-
31,694
- 7,549,574
Fund Balances, End of Year
$ - $
32,611
$ - $ 9,666,026
1
77
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Special Revenue Funds
Arts in
Public Public
South Coast
Safety Places
Air Quality AB 939
Revenues:
Taxes
$ _ $
$ $
Assessments
Intergovernmental
45,288
Contribution from property owners
Charges for services
Use of money and property
-
703 47,310
267,483
9,058 59,683
Miscellaneous
Developer participation
133,929
Loan repayments
Total Revenues
703
181,239
54,346
327,166
Expenditures:
Current:
General government
-
Public safety
_
Planning and development
-
20,380
93,446
Community services
-
30,662
Public works
Capital outlay
109,397
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
140,059
20,380
93,446
Excess (Deficiency) of Revenues
Over(Under)Expenditures
703
41,180
33,966
233,720
Other Financing Sources (Uses):
Transfers in
2,000
-
Transfers out
Proceeds from sale of capital assets
_
_
(8,754)
Total Other Financing Sources
(Uses)
2,000
(8,754)
Net Change in Fund Balances
2,703
41,180
33,966
224,966
Fund Balances, Beginning of Year
12,990
1,025,741
177,969
1,187,931
Restatements
Fund Balances, Beginning of Year, as Restated
12,990
1,025,741
177,969
1,187,931
Fund Balances, End of Year
$ 15,693
$ 1,066,921 $
211,935
$ 1,472,897
78
I
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
1 NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DUNE 30, 2007 (Continued)
Capital Projects
'
Special Revenue Funds
Funds
Low/Moderate
CV Violent
Redevelopment
Income Housing Development
PA No. 1 Agreement
Crime
Task Force
Agency
PA No. 1
Revenues:
Taxes
$ 10,507,377 $
$
$
Assessments
-
1
Intergovernmental
167,501
Contribution from property owners
234,328
Charges for services
-
-
Use of money and property
505,876
=
3,744
1,137,305
Miscellaneous
59,994
Developer participation
-
22,847
'
Loan repayments
987,611
-
-
Total Revenues
12,235,192
171,245
1,220,146
Expenditures:
Current:
General government
-
Public safety
- _
50,732
-
'
Planning and development
1,131,558
1,027,937
Community services
-
Public works
- -
-
-
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
1,131,558
50,732
1,027,937
Excess(Deficiency)of Revenues
Over (Under) Expenditures
11,103,634
120,513
192,209
Financing Sources (Uses):
eOther
Transfers in
100,000
Transfers out
(20,448,138)
(4,336,775)
Proceeds from sale of capital assets
124,097
a
Total Other Financing Sources
(Uses)
(20,224,041)
(4,336,775)
aNet
Change in Fund Balances
(9,120,407)
120,513
(4,144,556)
Fund Balances, Beginning of Year
14,801,733
26,084,934
oRestatements
-
-
Fund Balances, Beginning of Year, as Restated
14,801,733 -
-
25,084,934
Fund Balances, End of Year
$ 5,681,326 $
$ 120,513
$ 20,940,368
1
79
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Capital Projects Funds
Parks and Civic
Infrastructure Transportation Recreation Center
Revenues:
Taxes $ $ $ $
Assessments
Intergovernmental
Contribution from property owners
Charges for services _
Use of money and property 25,294 319,372 54,710
Miscellaneous
Developer participation 1,682,436 515,128 467,192
Loan repayments
Total Revenues
25,294
2,001,808
515,128
521,902
Expenditures:
Current:
General government
-
-
-
203,660
Public safety
_
Planning and development
_
Community services
_
Public works
52,100
3,036
Capital outlay
_
Debt service:
Principal retirement
Interest and fiscal charges
-
108,418
-
Total Expenditures
52,100
-
108,418
206,696
Excess. (Deficiency) of Revenues
Over (Under) Expenditures
(26,806)
2.001,808
406,710
315,206
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital assets
(87,674)
(1,597,755)
(5,657,436)
Total Other Financing Sources
(Uses)
(87,674)
(1,597,755)
(5,657,436)
Net Change in Fund Balances
(114,480)
404,053
406,710
(5,342,230)
Fund Balances, Beginning of Year
628,173
6,769,484
(2,260,152)
2,310,906
Restatements
Fund Balances, Beginning of Year, as Restated
628,173
6,759,484
(2,260,152)
2,310,906
Fund Balances, End of Year
$ 513,693
$ 7,173,537
$ (1,853,442)
$ (3,031,324)
'CITY
iNONMAJOR
OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGE'S IN FUND BALANCE
GOVERNMENTAL. FUNDS
YEAR ENDED JUINE 30, 2007
(Continued)
Capital Projects Funds
Library
Community
Street
Park
1
Development
Center
Facility
Facility
Revenues:
Taxes
$ -
$ -
$
$
Assessments
Intergovemmental
_
_
i
Contribution from property owners
-
-
Charges for services
Use of money and property
-
46,446
14,451
-
3,494
Miscellaneous
Developer participation
204,791
42,330
61,798
12,716
'
Loan repayments
-
-
-
Total Revenues
204,791
88,776
76,249
16,210
Expenditures:
Current:
General govemment
-
-
-
-
Public safety
Planning and development
Community services
'Public
works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
105,823
Total Expenditures
105,823
Excess (Deficiency) of Revenues
Over (Under) Expenditures
98,968
88,776
76,249
16,210
n
Other Financing Sources (Uses):
1�IP
Transfers in
Transfers out
(47,097)
a
Proceeds from sole of capital assets
Total Other Financing Sources
(Uses)
-
(47,097)
-
aNet
Change in Fund Balances
98,968
88,776
29,152
16,210
Balances, Beginning of Year
(2,124,399)
966,607
283,337
67,233
OFund
Restatements
oFund
Balances, Beginning of Year, as Restated
(2,124,399)
966,607
283,337
67,233
Fund Balances, End of Year
$ (2,025,431)
$ 1,055,383
$ 312,489 $
83,443
I
81
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Debt
Service
Capital Projects Funds
Funds
Redevelopment
Financing
Fire
Agency
Authority
Financing
Revenues:
Facility
PA No. 2
Projects
Authority
Taxes
$
$
$
$
Assessments
Intergovernmental
_
Contribution from property owners
-
6767886
586,
Charges for services
-
10,121
Use of money and property
-
125,421
17
Miscellaneous
Developer participation
84,366
Loan repayments
_
Total Revenues
84,366
125,421
689,003
Expenditures:
Current:
General government
Public safety
-
-
-
10,121
Planning and development
117,396
-
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
-
49,067
1,865,000
4,737,021
Total Expenditures
49,067
117,396
6,612,142
Excess (Deficiency) of Revenues
Over (Under) Expenditures
35,299
8,025
(5,923,139)
Other Financing Sources (Uses):
Transfers in
Transfers out
(66,107)
(7,273)
5,930,182
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
-
(66,107)
(7,273)
5,930,182
Net Change in Fund Balances
35,299
(58,082)
(7,273)
7,043
Fund Balances, Beginning of Year
(979,970)
2,748,430
7,273
3,591
Restatements
Fund Balances, Beginning of Year, as Restated
(979,970)
2,748,430
7,273
3,591
Fund Balances, End of Year
$ (944,671)
$ 2,690,348
$ -
$ 10,634
82
I
CITY OF LA QUINTA
1 COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Total
'
Governmental
Funds
Revenues:
Taxes
$ 10,507,377
877,191
'Assessments
1 ntergovernmental
3,347,821
Contribution from property owners
913,193
for services
277,604
'Charges
Use of money and property
2,844,182
Miscellaneous
59,994
Developer participation
5,018,025
1
Loan repayments
987,611
Total Revenues
24,832,998
'Expenditures:
Current:
General government
213,781
Public safety
50,732
'
Planning and development
2,390,717
Community services
1,032,716
'Capital
Public works
outlay
1,735,648
109,397
Debt service:
Principal retirement
1,865,000
Interest and fiscal charges
5,000,329
Total Expenditures
12,398,320
Excess (Deficiency) of Revenues
Over(Under)Expenditures
12,434,678
�j
Other Financing Sources (Uses):
U
Transfers in
6,032,182
Transfers out
(33,800,096)
Proceeds from sale of capital assets
124,097
Total Other Financing Sources
(Uses)
(27,643,817)
Net Change in Fund Balances
(15,209,139)
Balances, Beginning of Year
59,975,982
llFund
(62,587)
Restatements
DFund
Balances, Beginning of Year, as Restated
59,913,395
Fund Balances, End of Year
$ 44,704,256
83
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1, as restated
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 498,746
$ 498,746
$ 498,746
$
847,681
921,481
951,316
29,835
7,900
18,000
9,791
(8,209)
1,354,327
1,438,227
1,459,853
21,626
855,581
855,581
804,238
51,343
-
584,837
583,348
1,489
855,581
1,440,418
1,387,586
52,832
$ 498,746 $ (2,191) $ 72,267 $ 74,458
84
I
CITY OF LA QUINTA
1
1
r
I
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Transfers to other funds
Total Charges to Appropriations
' Budgetary Fund' Balance, June 30
IF1
1
P
I
I
I
I
0
U
I
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$1,121,570
$ 1,121,570
$ 1,121,570
$
2,071,017
2,071,017
1,823,751
(247,266)
40,800
40,800
48,880
8,080
3,233,387
3,233,387
2,994,201
(239,186)
869,275
869,275
1,002,054
(132,779)
3,331,499
510,719
2,820,780
869,275
4,200,774
1,512,773
2,688,001
$2,364,112 $ (967,387) $ 1,481,428 $ 2,448,815
0
85
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULES
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
202,600 454,745 30,000 (424,745)
202,600 454,745 30,000 (424,745)
202,588 525,921 30,000 495,921
202,588 526,921 30,000 495,921
$ 12 $ (71,176) $ $ 71,176
T
0
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JU�NE 30, 2007
Variance with
Final Budget
' Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 'I $ - $ - $ - $ -
'Resources (Inflows):
Intergovernmental
Use of money and property
'Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to othet funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
I
1
I
D
I
0
U
U
100,000
100,000
100,000
2,700
2,700
552
(2,148)
102,700
102,700
100,552
(2,148)
101,400
101,400
82,940
18,460
101,400
101,400
82,940
18,460
$ 1,300
$ 1,300
$ 17,612
$ 16,312
0
87
MMMME��
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1, as restated
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
177,250
177,250
183,133
5,883
8,500
11,300
12,613
1,313
185,750
188,550
195,746
7,196
201,142
201,142
195,746
5,396
201,142
201,142
195,746
5,396
$
$ 12,592
m
I
1
1
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPE
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
'Resources (Inflows):
Assessments
Amounts Available for Appropriation
'Charges to Appropriation (Outflow):
Public works
'Total Charges to Appropriations
Budgetary Fund Balance, June 30
1
I
F
I
U
U
U
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 31,694 $ 31,694 $ 31,694 $
890,900 890,900 877,191 (13,709)
922,594 922,594 908,885 (13,709)
890,900 922,594 876,274 46,320
890,900 922,594 876,274 46,320
$ 31,694 $ $ 32,611 $ 32,611
0
89
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
RCTC
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovemmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
BudgetAmourrts Actual Positive
Original Final Amounts (Negative)
2,374,007 46,832 (2,327,175)
2,374,007 46,832 (2,327,175)
1,929,072 46,832 1,882,240
1,929,072 46,832 1,882,240
$ $ 444,935 $
90
I
1
IJ
1
1
L
I
I
H
I
0
CITY OF LA QuINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Developerfees
Amounts Available for Appropriation
Charges to appropriation (outflow):
Community services
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund l Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 7,549,574
$ 7,549,574
$ 7,549,574
$
-
4,300
(4,300)
272,900
272,900
419,462
146,562
1,667,000
1,672,000
1,790,492
118,492
9,489,474
9,498,774
9,759,528
260,754
-
32,000
-
32,000
116,650
93,502
23,148
148,650
93,502
55,148
$ 9,489,474 $ 9,350,124 $ 9,666,026 $ 315,902
1
91
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (inflows):
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
_ Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 12,990 $ 12,990 $ 12,990 $
300 600 703 103
2,000 2,000 2,000 -
15,290 15,590 15,693 103
2,000 2,000 2,000
2,000 2,000 2,000
$ 13,290 $ 13,590 $ 15,693 $ 2,103
a
i
CITY OF LA QUINTA
BUDGET COMPARISON SCHEDULE
ARTS IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2007
Variance with
Final Budget
Budget Amounts
Actual Positive
Original Final
Amounts (Negative)
Budgetary Fund Balance, July 1
$1,025,741 $ 1,025,741
$ 1,025,741 $
Resources (Inflows):
Use of money and property
Developerfees
Amounts available for appropriation
Charges to Appropriation (Outflow):
Community services
Capital outlay
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
1
U
I
LI I
U
0
U
0
40,600
40,600
47,310
6,710
97,500
97,500
133,929
36,429
1,163,841
1,163,841
1,206,980
43,139
31,800
36,800
30,662
6,138
255,250
420,150
109,397
310,753
200,000
200,000
-
200,000
487,050
656,950
140,059
516,891
$ 676,791 $ 506,891 $ 1,066,921 $ 560,030
0
93
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 177,969
$ 177,969
$ 177,969
$
45,000
45,000
45,288
288
7,400
7,400
9,058
1,658
230,369
230,369
232,315
1,946
26,600
26,600
20,380
6,220
26,600
26,600
20,380
6,220
$ 203,769
$ 203,769
$ 211,935
$ 8,166
94
I
1
1
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Charges for services
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers to other funds
Total Charges to Appropriations
' Budgetary Fund Balance, June 30
1
I
I
I
I
I
0
U
U
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$1,187,931 $ 1,187,931 $ 1,187,931 $
450,000 267,483 (182,517)
- 50,000 59,683 9,683
1,187,931 1,687,931 1,515,097 (172,834)
79,430 93,446 (14,016)
8,754 8,754
88,184 102,200 (14,016)
$1,187,931 $ 1,599,747 $ 1,412,897 $ (186,850)
I
95
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2007
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$14,801,733
$ 14,801,733
$ 14,801,733
$
Resources (Inflows):
Taxes
8,915,100
10,349,200
10,507,377
158,177
Contributions from property owners
252,000
252,000
234,328
(17,672)
Use of money and property
333,300
442,300
505,876
63,576
Proceeds from sale of capital assets
150,000
645,000
124,097
(520,903)
Loan repayments
-
1,050,000
987,611
(62,389)
Transfers from other funds
140,000
100,000
(40,000)
Amounts Available for Appropriation
24,452,133
27,680,233
27,261,022
(419,211)
Charges to Appropriation (Outflow):
Planning and development
8,957,908
10,757,908
1,131,558
9,626,350
Transfers to other funds
4,448,304
20,448,304
20,448,138
166
Total Charges to Appropriations
13,406,212
31,206,212
21,579,696
9,626,516
Budgetary Fund Balance, June 30
$11,045,921
$ (3,525,979)
$ 5,661,326
$ 9,207,305
i
I
11
1
1
1
1
1
i
1
i
1
1
1
1
1
1
1
Id
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CV VIOLENT CRIME TASK FORCE
YEAR ENDED JUNE 30, 2007
Budgetary fund balance, July 1
Resources (inflows):
Intergovernmental
Use of money and property
Amounts available for appropriation
Charges to appropriation (outflow):
Public safety
Total Charges to Appropriations
Budgetary fund balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
163,960
176,210
167,501
(8,709)
1,600
1,600
3,744
2,144
165,560
177,810
171,245
(6,565)
102,700
102,700
50,732
51,968
102,700
102,700
50,732
51,968
$ 62,860
$ 75,110
$ 120,513
$ 45,403
1
97
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Developerfees
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
_ Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
1,541,800
7,673,671
4,056,049
(3,617,622)
563,997
292,415
(271,582)
8,037,903
107,352,665
32,211,010
(75,141,655)
9,579,703
115,590,333
36,559,474
(79,030,859)
9,331,249 115,297,180 36,311,020 78,986,160
182,491 182,491 182,491
65,963 65,963 65,963 -
9,579,703 115,545,634 36,559,474 78,986,160
$ $ 44,699 $ $ (44,699)
T
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.1
YEAR ENDED JUNE 30, 200ir
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 25,084,934
$ 25,084,934
$ 25,084,934
$
Resources (Inflows):
Use of money and property
512,500
1,199,500
1,137,305
(62,195)
Other
-
-
59,994
59,994
Developerfees
-
22,847
22,847
Transfers from other funds
2,500,000
_
Amounts Available for Appropriation
28,097,434
26,284,434
26,305,080
20,646
Charges to Appropriation (Outflow):
Planning and development
759,626
947,646
1,027,937
(80,291)
Transfers to other funds
4,152,554
20,556,057
4,336,775
16,219,282
Total Charges to Appropriations
4,912,180
21,503,703
5,364,712
16,138,991
Budgetary Fund Balance, June 30
$ 23,185,254
$ 4,780,731
$ 20,940,368
$ 16,159,637
.h
I
I
I
0
U
U
C
D
I
CITY OF LA QUINTA
1
'
BUDGETARY COMPARISON SCHEDULE
2004 LOW/MOD BOND
YEAR ENDED JUNE 30, 2007
'
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$56,846,921
$ 56,846,921
$ 56,846,921
$
Resources (Inflows):
,
Use of money and property
2,000,000
2,800,000
2,706,511
(93,489)
Amounts Available for Appropriation
58,846,921
59,646,921
59,553,432
(93,489)
Charges to Appropriation (Outflow):
'
Planning and development
3,500,000
6,283,000
4,705,800
1,577,200
Transfers to other funds
-
53,091,795
16,564,295
36,527,500
Total Charges to Appropriations
3,500,000
59,374,795
21,270,095
38,104,700
'
Budgetary Fund Balance, June 30
$55,346,921
$ 272,126
$ 38,283,337
$ 38,011,211
1
C
I
[1
11
C
1
100
I
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INFRASTRUCTURE
YEAR ENDED JUNE 30, 200i'
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
D
D
U
I
U
I
0
0
I
I
0
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 628,173
$ 628,173
$ 628,173
$ -
7,500
20,800
25,294
4,494
636,673
648,973
653,467
4,494
52,100
52,100
-
598,264
87,674
510,590
650,364
139,774
510,590
$ 635,673 $ (1,391) $ 513,693 $ 515,084
E
101
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 6,769,484
$ 6,769,484
$ 6,769,484
$ -
294,400
294,400
319,372
24,972
1,096,200
1,096,200
1,682,436
586,236
8,160,084
8,160,084
8,771,292
611,208
2,914,307
6,655,496
1,597,755
5,057,741
2,914,307
6,655,496
1,597,755
5,057,741
Budgetary Fund Balance, June 30 $ 5,245,777 $ 1,504,588 $ 7,173,537 $ 5,668,949
I
H
n
1
F
I
I
I
I
I
I
I
I
102
I
I
1
H
k
II
I I,
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Transfers to other funds
Total Charges to Appropriations
0 Budgetary Fund Balance, June 30
I
0
D
I
0
0
0
I
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$(2,260,152) $ (2,260,152) $(2,260,152) $
446,000 446,000 515,128 69,128
(1,814,152) (1,814,152) (1,745,024) 69,128
120,000 108,418 11,582
125,226 125,226
245,226 108,418 136,808
$(1,814,152) 1($059,378) $(1,853,442) $ 205,936
103
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2007
Variance with
Budget Amounts
Actual
Final Budget
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$2,310,906
$ 2,310,906
$ 2,310,906
$
Resources (Inflows):
Use of money and property
-
85,000
54,710
(30,290)
Developerfees
256,000
256,000
467,192
211,192
Amounts Available for Appropriation
2,566,906
2,651,906
2,832,808
180,902
Charges to Appropriation (Outflow):
General government
203,660
203,660
203,660
-
Public works
-
-
3,036
(3,036)
Transfers to other funds
-
11,898,098
5,657,436
6,240,662
Total Charges to Appropriations
203,660
12,101,768
5,864,132
6,237,626
Budgetary Fund Balance, June 30
$ 2,363,246
$ (9,449,852)
$(3,037,324)
$ 6,418,528
1
I
1
I
I
F
I
104
1
I
I
11
D
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U
I
I
IJ
D
I
0
d
Q
0
CITY OF LA QUINTA
BUDGETARY COMPARISON I SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (inflows):
Developerfees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$(2,124,399) $(2,124,399) $(2,124,399) $
177,500 177,500 204,791 27,291
(1,946,899) (1,946,899) (1,919,608) 27,291
120,000 105,823 1077
120,000 105,823 14,177
$(1,946,899) $ (2,D66,899) $(2,025,431) $ 41,468
105
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2007
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 966,607
$ 966,607
$ 966,607
$ -
Resources (Inflows):
Use of money and property
38,300
38,300
46,446
8,146
Developerfees
37,000
37,000
42,330
5,330
Amounts Available for Appropriation
1,041,907
1,041,907
1,055,383
13,476
Budgetary Fund Balance, June 30
$1,041,907
$ 1,041,907
$ 1,055,383
$ 13,476
I
I
I
`J
I
I
I
I
I
I
I
106
CITY OF LA QUINTA
11
i
I
i
D
I
F
Q
D
0
D
D
N
I
I
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 283,337
$ 283,337
$ 283,337
$ -
10,200
10,200
14,451
4,251
44,100
44,100
61,798
17,698
337,637
337,637
369,586
21,949
75,000
87,923
47,097
40,826
75,000
87,923
47,097
40,826
$ 262,637
$ 249,714
$ 312,489
$ 62,775
1
107
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2007
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 67,233
$ 67,233
$ 67,233
$ -
Resources (Inflows):
Use of money and property
2,600
2,600
3,494
894
Developer fees
11,000
11,000
12,716
1,716
Amounts Available for Appropriation
80,833
80,833
83,443
2,610
Budgetary Fund Balance, June 30
$ 80,833
$ 80,833
$ 83,443
$ 2,610
I
I
I
I
J
I
108
CITY OF LA QUINTA
Ll
1
i
I
I
I
I
P
I
l_I1
D
I
I
D
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Developerfees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (979,970) $ (979,970) $ (979,970) $
74,500 74,500 84,366 9,866
(905,470) (905,470) (895,604) 9,866
50,000 49,067 933
50,000 49,067 933
10,799
1
109
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.2
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow);
Planning and development
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$2,748,430
$ 2,748,430
$ 2,748,430
$ -
105,600
105,600
125,421
19,821
2,854,030
2,854,030
2,873,851
19,821
172,477
172,477
117,396
55,081
-
193,235
66,107
127,128
172,477
365,712
183,503
182,209
$2,681,553 $ 2,488,318 $ 2,690,348 $ 202,030
I
1
7l
iL
11
I
r
I
I
I
I
I
r
1
I
110
I
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY PROJECTS
YEAR ENDED JUNE 30, 2007'
Variance with
0 Final Budget
Budgetary Fund Balance, July 1
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
p
0
J
0
0
I
0
0
I
0
F
0
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 7,273 $ 7,273 $ 7,273 $
7,273 7,273
7,273 7,273
$ 7,273 $ $ $
0
111
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.1
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal
Interest and fiscal charges
Pass through agreement payments
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 9,549,904
$ 9,549,904
$ 9,549,904
$ -
35,430,900
41,396,800
42,029,504
632,704
93,100
553,100
1,054,152
501,052
4,448,304
4,448,304
4,448,138
(166)
49,522,208
55,948,108
57,081,698
1,133,590
I
I
I
I
457,300
657,300
506,056
151,244
3,402,855
3,402,855
3,395,449
7,406
8,678,900
8,678,900
8,678,900
16,345,791
19,187,315
19,044,700
142,615
6,468,515
4,108,515
4,068,349
40,166
35,353,361
36,034,885
35,693,454
341,431
'
$14,168,847
$19,913,223
$21,388,244
$ 1,475,021
I
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I
I
11
112
F
CITY OF LA QUINTA
�J
I
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BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.2
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal
Interest and fiscal charges
Pass through agreement payments
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 734,999
$ 734,999
$ 734,999
$
19,658,600
21,607,200
20,777,158
(830,042)
273,900
399,900
556,329
156,429
1,954,642
1,954,642
1,954,560
(82)
22,622,141
24,696,741
24,023,0"
(673,695)
176,100
176,100
184,484
(8,384)
105,000
205,000
205,000
1,314,785
1,314,785
1,314,785
16,519,465
18,146,995
17,453,875
693,120
1,954,642
1,954,642
1,954,560
82
20,069,992
21,797,522
21,112,704
694,818
$ 2,552,149
$ 2,899,219
$ 2,910,342
$ 11,123
113
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Contributions from property owners
Charges for services
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 3,591 $ 3,591 $ 3,591 $
678,865 678,865 678,865
15,000 15,000 10,121 (4,879)
- 100 17 (83)
5,923,157 5,930,430 5,930,182 (248)
6,620,613 6,627,986 6,622,776 (5,210)
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15,125 15,125 10,121 5,004 I
1,865,000
4,737,021
1,865,000
4,737,021
1,865,000
4,737,021 -
,
6,617,146
6,617,146
6,612,142 5,004
$ 3,467
$ 10,840
$ 10,634
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' INTERNAL SERVICE FUNDS
I Internal service funds are used to account for activities involved in rendering services to
departments within the City. Costs of materials and services used are accumulated in this fund
and charged to the user departments as such goods are delivered or services rendered.
' The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund — used to account for the ultimate replacement of City owned
and operated vehicles and equipment
Information Technology Fund — used to account for the purchase and replacement of
information systems.
Park Equipment and Facilities Fund — used to account for the purchase and replacement of City
owned (park facility infrastructure.
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CITY OF LA QUINTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2007
Park
Equipment Information Equipment
Replacement Technology and Facility Total
Assets:
Current:
Cash and investments $ 3,269,503 $ 833,301 $ 872,490 $ 4,975,294
Receivables:
Interest 14,054 3,781 3,823 21,658
Due from other governments - 330 - 330
Total Current Assets 3,283,557 837,412 876,313 4,997,282
Noncurrent:
Capital assets - net of accumulated depreciation 915,127 479,206 15,095,981 16,490,314
Total Noncurrent Assets 915,127 479,206 15,095,981 16,490,314
Total Assets $ 4,198,684 $ 1,316,618 $ 15,972,294 $ 21,487,596
Liabilities and Fund Equity:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Total Current Liabilities
Long -Term:
Compensated absences
Total Long -Term Liabilities:
Total Liabilities
Net Assets:
Invested in capital assets, net
of related debts
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
$ 13,888 $ 12,840 $ $ 26,728 ,
1,727 1,727
13,888 14,567 28,455 ,
4,168 4,168 '
-
4,168
4,168
13,888
18,735
32,623
915,127
479,206
15,095,981
16,490,314
3,269,669
818,677
876,313
4,964,659
4,184,796
1,297,883
15,972,294
21,454,973
$ 4,198,684 $
1,316,618 $
15,972,294
$ 21,487,596
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CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2007
Operating Revenues:
' Sales and service charges
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other
Total Operating Expenses
Operating Income (Loss)
Non -Operating Revenues (Expenses):
Interest revenue
Gain on disposition of assets
Park
Equipment Information Equipment
Replacement Technology and Facility Totals
$ 487,000
$ 373,500
$ 350,722
$ 1,211,222
487,000
373,500
350,722
1,211,222
-
87,166
87,166
71,491
-
-
71,491
109,665
-
-
109,665
10,374
97,180
-
107,554
-
125,056
-
125,056
210,287
83,750
401,031
695,068
470
19,122
12,130
31,722
402,297
412,274
413,161
1,227,722
84,713
(38,774)
(62,439)
(16,500)
151,472
46,047
40,645
238,164
1,327
-
-
1,327
Total Non -Operating Revenues
152,799
46,047
40,645
239,491
Income Before Contributions and Transfers
237,512
7,273
(21,794)
222,991
Capital contributions
218,512
110,554
631,527
960,593
Change in Net Assets
456,024
117,827
609,733
1,183,584
Net Assets:
Beginning of Year
3,728,772
1,180,056
15,362,561
20,271,389
DChange
in Net Assets
456,024
117,827
609,733
1,183,584
0
End of Fiscal Year $
4,184,796
$ 1,297,883
$ 15,972,294
$ 21,454,973
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CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2007
Park
Equipment Information Equipment
Replacement Technology and Facility Totals
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to supplies for good and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Net Cash Provided (Used) by Capital and
Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
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 (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in prepaid expense
(Increase) decrease in due from other governments
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease)in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds
$ 486,999 $ 373,500
(188,153) (189,366)
(74,358)
$ 350,722 $ 1,211,221
(12,130) (389,649)
(74,358)
298,846 109,776 338,592 747,214
(59,589) (16,965) (24,540) (101,094)
12,850 12,850
(46,739) (16,965) (24,540) (88,244)
150,058
45,537
39,115
234,710
,
150,058
45,537
39,115
234,710
'
402,165
138,348
353,167
893,680
2,867,338
694,953
519,323
4,081,614
$ 3,269,503
$ 833,301
$ 872,490
$ 4,975,294
1
$ 84,713 $ (38,774) $ (62,439) $ (16,500) ,
210,287 83,750 401,031
695,068 '
50,724 -
50,724
- (330) -
(330)
3,846 10,843 -
14,689
- (605) -
'
(605)
- 4,168 -
4,168
214,133 148,550 401,031 763,714 1
$ 298,846 $ 109,776 $ 338,592 $ 747,214 ,
$ 218,512 $ 110,554 $ 531,527 $ 960,593 ,
118
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' AGENCYFUNDS
i 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:
iThe City of La Quirita has the following agency funds:
i Assessment District No. 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.
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CITY OF LA QUINTA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2007
Assessment Assessment Assessment
District District District
No.92-1 No.97-1 No.2001-1 Totals
Assets:
Cash and investments
$
318,318 $
142,572
$
447,592
$ 908,482
Receivables:
Taxes
10,583
2,711
10,023
23,317
Interest
1,320
580
1,836
3,736
Total Assets
$
330,221 $
145,863
$
459,451
$ 935,535
Liabilities:
Deposits
$
330,221 $
145,863
$
459,451
$ 935,535
Total Liabilities
$
330,221 $
145,863
$
459,451
$ 935,535
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120
CITY OF LA QUINTA
' COMBINING STATEMENT OF: CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
' YEAR ENDED JUNE 30, 2007
Balance Balance
July 1, 2006 Additions Deductions June 30, 2007
Assessment District No. 92-1,
Assets:
and investments
$
295,735
$
319,666
$
297,083
$
318,318
'Cash
Receivables:
Taxes
5,281
10,583
5,281
10,583
'
Interest
1,233
1,320
1,233
1,320
Total Assets
$
302,249
$
331,569
$
303,597
$
330,221
Liabilities:
Deposits
$
302,249
$
365,612
$
337,640
$
330,221
Total Liabilities
$
302,249
$
366,612
$
337,640
$
330,221
Assessment District No. 97-1-
Assets:
Cash and investments
$
131,706
$
77,668
$
66,802
$
142,572
Receivables:
Taxes
2,852
2,711
2,852
2,711
Interest
542
580
542
580
Total Assets
$
135,100
$
80,959
$
70,196
$
145,863
Liabilities:
Deposits
$
135,100
$
90,556
$
79,793
$
145,863
Total Liabilities
$
135,100
$
90,556
$
79,793
$
145,863
Assessment District No. 20011
aAssets:
Cash and investments
$
411,569
$
288,618
$
252,595
$
447,592
Receivables:
Taxes
22,180
10,023
22,180
10,023
0
Interest
1,709
1,836
1,709
1,836
aTotal
Assets
$
435,458
$
300,477
$
276,484
$
459,451
Liabilities:
Deposits
$
435,458
$
336,039
$
312,046
$
459,451
Total Liabilities
$
435,458
$
336,039
$
312,046
$
459,451
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CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2007
Balance
Balance
July 1, 2006
Additions
Deductions
June 30, 2007
Total - All Anencv Funds
Assets:
Cash and investments
$
839,010
$
685,952
$
616,480
$
908,482
Receivables:
Accounts
30,313
23,317
30,313
23,317
Interest
3,484
3,736
3,484
3,736
Total Assets
$
872,807
$
713,005
$
650,277
$
935,535
Liabilities:
Deposits
$
872,807
$
792,207
$
729,479
$
935,535
Total Liabilities
$
872,807
$
792,207
$
729,479
$
935,535
122
STATISTICAL SECTION
This part of the City of La Quinta's comprehensive annual financial
report presents
'
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information
says about the
'
government's overall financial health.
Contents
Page
'
Financial Trends
These schedules contain trend information to help the reader
understand how the government's financial performance and
well-being have changed over time.
124
Revenue Capacity
These schedules obtain information to help the reader assess
the government's most significant local revenue source, the
property tax.
130
Debt Capacity
These schedules present information to help the reader assess
the ability of the government's current levels of outstanding debt
and the government's ability to issue additional debt in the future.
135
Demographic and Economic Information
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
government's financial activities that take place. 140
Operating Information
These schedules contain service and infrastructure data to help
the reader understand how the information in the government's
financial report relates to the services the government provides
Oand the activities it performs. 143
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CITY OF LA QUINTA
Net Assets by Component
Last Seven Fiscal Years
(accrual basis of accounting)
Fiscal Year
TABLE '
2001
2002
2003
2004
2005
2006
2007
Governmental activities:
Invested in capital assets,
net of related debt
$ 217,419,724
195,474,945
225,818,022
249,059,500
233,361,129
253,559,117
283,729,719
Restricted
45,438,930
74,156,691
40,038,313
44,415,966
43,421,857
65,159,623
49,277,895
Unrestncted
30,698,622
43,025,999
48,290,000
45,169,328
60,361,071
86,129,376
123,256,256
Total govemmental activities net assets
$ 293,557,276
312,657,635
314,146,335
338,044,794
337,144,057
404,848,116
456,263,870
Business -type activities
Invested in capital assets,
net of related debt
$ -
-
-
41,300,846
42,075,172
42,642,025
Restricted
-
-
-
-
-
-
-
Unresnicted
(620,658)
(1,665,646)
(2,385,462)
Total husmess-type activities net assets
40,674,188
40,409,526
40,306,563
primary government.
Invested in capital assets,
net of related debt
$ 217,419,724
195,474,945
225,819,022
249,059,500
274,661,975
295,634,289
326,421,744
Restricted
45,438,930
74,156,691
40,038,313
44,415,966
43,421,857
65,159,623
49,277,895
Unrestricted
30,698,622
43,025,999
48,290,000
45,169,328
59,734,413
84,463,730
120,870,794
Total primary government net assets
$ 293,557,276
312,657,635
314,146,335
338,644,794
377,818,245
445,257,642
496,570,433
The City of La Quinta implemented GASB 34 for the fiscal year ended June 30,
2001. Information prior to the implementation of GASB 34 is not available.
Source. City of La Quinta
124
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CITY OF LA QUINTA
TASUE 2
Changes In Ner ASse6
I-,ICa Sa,,. Fuaal
Y.
(tactua) bases of aee9unung)
F,,.1 Year
2Wl
200E
2Wi
2W4
2005
M
2007
Exprns.
Govcmmenul acbvmes
G.migovcon.,
6 3.146.699
1,241,576
1103.462
4,319779
3595,906
4229,871
6.284142
'
PUNIC lEfcty
5P6.628
7.522532
"47.WS
10,256,161
8512.875
9,W514E
12724AW
CdU., atrvm.
940.881
1.411.943
1,321,925
1,446,999
1,157.141
1,426,OJ3
4,299,45.1
Planning and development
6146,998
7,110.125
19,083,860
7.526,977
5752139
5,906915
7.736,520
Publ¢wmks
5,968,911
6.434239
6,785.759
6,W3,011
91101.582
101106,335
10.511.874
Intern on long-term d[W
5,861.632
7,791,759
$555,401
9659,779
1SZ65.o51
15494,656
15,163422
iTwl go.Coal anrvmu experues
27.941749
3M 12, 174
47497,312
39212,0U9
4"94.794
46,129054
56.719.711
BuSmess�lype aelmn.
Golf Corn¢
---_—
1,877791
4523.14o
4.520173
Totalbams-rvPe.rcuvma expenses
_ _
1,877791
4.523.146
4,520.171
tool pnmary Q.Ut..U,t expenses
27,g41749
13,512,174
47,497312
39,212.009
45,262.095
50.652,2W
61239,884
'
Progulo.vrnu.
Govemmenul acuvmcs
Charges for smaa
Gmeral govenment
214,601
253.891
298,749
337.376
445,663
717,849
60,530
'Pak safety
C. U, servrta
2,860,434
I23,960
2,544,528
170.865
2.917.866
2M,SM
4,OD4,621
252677
4.439.115
252,501
4,168206
428,947
2,659,515
187,065
Platmng and developtmnl
709,033
5651098
611278
662,737
754 S
1.873 676
16%W
'YuWa wale
1,429942
1116171
1594225
1,811,993
2.815703
3,021,379
2,244,156
Operaung grata and cmtnbulions
1,601716
11699,255
L797.03I
1799,503
1,935378
3,603,173
3796495
Capuol grans and eonenbnbons
14,375.463
11,662424
5,160405 a
12,096143
18591A23
33,9189UI
11.601.131
'Taal g.vemmeUUl Ic,oft to
program rtventus
21115,149
184212434
12S85.160
20,961.050
29.233.921
47 732A31
26918535
Rosins-rypC tauuues
clurges for saves.
Golfeourse
1,091.836
3.120 72g
154074X
Total Nannot4ype azd,Uti.
Pregsem mvmtus
IMA36
3,120.728
3.540,749
Total pnmay government
program mvenua
21115.149
18,212,434
12S85,360
20%1050
30]25,257
50%52,859
30,459.783
(Cominued)
(connnaed)
(emi.t[d)
(emmOWd)
(cnnl0u[d)
(conlmU[d)
(cominLLed)
Net re5rnu. f.p"U"'
¢trvm
Gwcmmemal cs
(6$26.600)
(15299,740)
(34,911,952)
(18250,959)
(14,785A55
1,6030JJ
(29(979425
Bµnncss-syp[acllmua5
-
G85.955J
(14U2918)
(9J94R5)
Total too revmuu(upeoses)
(6,526,6W)
(15199,740)
4911952
(18.250959)
14,936128
2W,659
(30,780.Wl
Genersl revenues and other than,. in net assets
Gd,,UU, laztillb.
Tines
Pmpmy tax.
1,162.634
1,45D,196
1,800.616
2,198,141
2.579,245
3,679,079
4,999,051
Tax inacmenl
15124,183
19,999.329
21,101.832
24,450,337
24,443.112
35,168129
42.593A31
D
Sties no,
3.78,583
3.093.588
4145181
5,240,037
6,TO.566
74613.075
9.723,081
T,.i.a ouuP.Cy un.
4749,753
3.967.033
4,036,290
4,261.767
4.931338
5A17238
5449,361
Frantole uxa
625,790
654.696
690.544
895.810
1,185,087
I,CW4.470
1259,985
Olh. env.
515,310
479,822
700.154
8674058
1.392,795
1,326,618
1,179,785
M9mr vehale in hen, unr.mclfA
1.494620
1,473.217
1,768,01
I,08,151
2,453,W2
2,140,233
3,291,055
0
In,,.on.I income
3,578.206
3AW.097
1,353,868
I,73M05
4.336,050
6.319.502
11;04,951
Gain 0.) on We ofceplul.sds
(21,397)
3.717,470
L961,292
mn"llanaoua
292.036
692,691
513,876
1,489,612
2,397,474
1,943,WJ
2,052.246
Tta.fm
41459.643
1.137203
(874,M5)
Tout g.v...W actt 1a.
31,023,115
33695,242
364W,652
42,749,419
IA650,136
66,101726
80,516,W1
But.1type acdvNa
ln,no.1 income
553
11817
Tranafc.
-
41,459A43
1,137,203 '
874.645
Total busm.s-type aclivtOcs
-
41,459.613
1,137.756
876.462
Total prinmy,ovemmml
31,023,115
33.695,242
36,4W,652
42,749418
54109.T79
67,219,48E
81J9J363
clangm to.1 now
OCUemmenul aeuvio.
24,496,515
18A95,502
1,488,7W
24,498,459
(L5W,717)
67,704,803
50.715,725
Berme.-Iype acnvNee
-
-
42,674199
(264,662)
102.963
Total .Ur, govemment
S 24,496,515
18395.502
1.488,700
24,498,459
39,173,451
67,440,141
50,612762
0
TAe ,6ty qfLa Qumto unplemented GASB?4 for the fuad
year enrlaf June
30, 2001.
bf rmntwn poor to toe tmfdemabuwn cfGASB 34 u.1..dnole
The lransfcr.0for land Ik golfcwrse tmpmvemmLv
nanaf.d to the Entcrpn.
FuM
D
source Cdyofu Qama
U
0
125
CITY OF LA QUINTA
Changes in Net Assets - Governmental Activities
Last Seven Fiscal Years
(accrual basis of accounting)
TABLE 3 '
2001
2002
2003
2004
2005
2006
1007
E rpenses
General government
5 3,146.699
3,241,576
3,203,462
4,319,778
3,595,906
4,229.871
6,284,342
Pubbe safety
5,776,628
7.522,532
8.547,005
10,256.463
8.512,875
9,065.244
12,724,100
Cbmmumt, services
940,881
1411.943
1,32L825
1,446,999
1,157,141
1,426.033
4.299,453
Plammng and development
6.146.999
7,110.125
19,083,860
7,526,977
5.752,239
5,906,915
T736520
Public works
5,968,911
6A34.239
6,785,759
6,003,011
9,101,582
10,006335
10.511874
Interest on long -tern debt
5,861,632
7,791,759
8,555,401
9,658,779
15.265,051
15.494,656
15,163,422
Total govemmemal activities expenses
27,841,749
33,512,174
47,497,312
39,212,009
43,384,794
46,129,054
56.719,711
Pmglam revenues
Charges for services
General government
214.601
253,891
298,749
Public safety
2,860,434
2,544,528
2,917.866
Community services
121960
170,865
205,806
Planning and development
709.033
565,098
611,278
Public works
1.429,942
1,316,373
1,594,225
Operating Stands and contributions
1,601,716
1,699,255
1,797.031
Capital grants and contributions
14,375,463
11,662,424
5,160,405
I end governmental activities
program revenues
21.315,149
18,212,434
12,585,360
Net program revenues (expenses)
(0,526,600)
(15,299,740)
(34,911.952)
General re,ermes and other changes in net assets
Taxes
Property taxes
1,162,634
1,450,196
1,800.616
Tax mcrenwm
15,324.183
IS 899,J29
21,191,832
Sales tax
3.778,583
3,093,588
4,345,383
Transient occupancy taxes
4.749.753
3967,003
4,03fi 290
Franchise tax
625,790
654,696
690,544
Other tax
515,310
479,822
700, 154
Motor vehicle in lieu, unrestricted
1,496,620
1,473,217
1,768.091
Investment income
3.578,206
3,006,097
1,353,868
Gam (loss) on sale ofcapiml assets
-
(21,397)
-
Miscellaneous
292,036
692,691
513,876
Transfers
Total governmental activities
31,023,115
33,695,242
36,400,652
Changes in net assets -
governmental activities
S 24,496,515
18,395,502
1,488,700
The Ciry of la Quinta implemented GASB 34 for the fiscal year ended June
30, 2001.
/ntbrmotran utter to the imnlementatian
oi`Ck B 34 is not available.
Source City of La Qumta
337,376
445,663
717,849
60,530
4,004,621
4,438.115
4,168 _06
2,659,515
252,677
252501
428.947
387,065
662.737
754,938
1,873,676
169.643
1,813,993
2,815,703
3.021,379
2,244,156
1,799,503
1,935,578
3,603,173
3,796,495
12,090,143
19,591,423
33,918,901
17.601.131
20,961,050
29,233,921
47,732,131
26.918 535
(18,250,959)
(14,150 873)
1.603,077
(29,801,176)
1
2,198,141 2,579,245 3,679.079 4,999,051 '
24,450,337
24,443,112
35.168,329
42,583.031
5,240.037
6,773,566
7,613,075
6,723,081
4,261,767
4,831,338
5,437,238
5,448,361
895,810
1,185,0117
1,044,470
1,259,995
867,058
1,392,795
1,326,618
1,179795
1,608,151
2,453,642
2.740.233
3,291.055
1,738,505
4,336,050
6,319,502
11,854,951
-
3,717,470
t,967,292
-
'
1,489,612
2,397,474
1,943,093
2,052 246
(41,459,643)
(t,137,203)
(874,(A5)
42,749,418
12,650,136
66,101,726
80,5)6,901
'
24,498,459
(1,500,737)
67,704,803
50,715,725
I
I
126
' CITY OF LA QUINTA
Changes in Net Assets - Business -type Activities
Last Three Fiscal Years
(accrual basis of accounting)
'
Fiscal Year
2005
2006
'
Expenses:
2
4,523,146
Golf Course
1,877,291
Total business -type activities expenses
1,877,291
4,5237146
'
Program revenues:
Charges for services:
Golf Course
1.091,836 2
3,120,728
Total business -type activities
program revenues
1,091,836
3,120,728
Net revenues (expenses)
(785,455)
(1,402,418)
General revenues and other changes in net assets:
Investment income
553
Transfers
-
164,190
Capital contributions
41,459,643
973,013
Total business -type activities
41,459,643
1,137,756
Changes in net assets - business -type activities
40,674,188
(264,662)
The City of La Quinta implemented the business type activities
in FY
200412005.
i
The transfer was for land & golf course improvements
transferred to the Enterprise Fund.
2 This was the first full year of operations for the Golf Course
aSource:
City of La Quinta
I
0
E
0
2007
4,520,173
4,520,173
3,540,748
3,540,748
(979,425)
1,817
874,645
979,425
1,855,887
876,462
TABLE 4
D
127
CITY OF LA QUINTA TABLES
Fund Balances of Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2001
2002
2003
2004
2005
2 006
2007
General fund.
Reserved
$ 11,746.211
12.897,893
2I,099,910
29,210,757
32,412,590
23,210,506
28.388,633
Unreserved
23.878,259
27,991,710
26,584,773
25,494,479
31,514,377
53.058,618
56.251.887
Total general fund
S 35,624,470
40,979,603
47.684,683
54,705236
63,926,967
76.269,124
84,640520
All other governmental funds
Reserved
S 13AW545
45,508,787
38,404,982
98,476,000
99,751,862
95,515445
31,211,751
Unreserved, reported in:
Special revenue funds
6.352,995
12,107,305
9,382,431
9,296,459
19.267,394
36,475,093
27,770,552
Debt service funds
(6,800.030)
(5.622,884)
(6,182,506)
(11,099.245)
(7,236,054)
738,590
10,634
Capital projects funds
18,712,013
12,423,247
16,368,205
29,600,240
1.831,415
6,499,827
59,370.198
Total all other governmental funds
S 31,745,523
64,416,455
57,973,112
125,263,454
113,614,617
139,228,955
117.363,135
The City afLa Quetta has elected to show only seven years of datafor this schedule
' The increase was primarily the result of the issuance of the 2004 Financing Authority bonds.
Source. City of La Quetta
128
t
' Revenues
Taxes
CITY OF LA QUINTA
Changes in Fund Balances of Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
TABLE6
Fiscal Year _
2001 2002 2003 2004 2005 2006 2007
$
36,605,514
43,011,931
Licenses and permits
2,057,423
1,857,691
Charges for services
1,998,589
1,757,744
Developer fees
2,592,398
2,298,647
Intergovernmental
9,400,340
9,583,451
Investment income
4,893,919
4,135,009
Special assessments
782,610
757,619
Rental income
1,067,076
1,001,389
'
Loan repayments
Other
502,717
584,197
Total revenues
59,900,606
64,987,678
Expenditures
Current
General government
3,275,624
3,161,596
Public safety
5,636,154
7,610,308
Community services
817,460
1,067,837
Planning and development
6,344,764
10,693,374
Public works
2,613,928
2,897,312
Capital projects
14,456,314
57,342,978
Debt service
Principal retirement
4,510,420
11,453,487
Interest and fiscal charges
5,942,929
7,017,016
Payment to bond escrow
-
-
Payments under pass -through obli
10,949,381
13,669,166
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses)
Issuance of tax allocation bonds
Issuance of revenue bonds
Payment to bond escrow
Transfers in
Transfers out
Proceeds front sale of capital assets
Total other financing
O
sources (uses)
Net change in fund balances
50,326,811 58,301,082
1,982,127 3,096,145
2,302,759 2,619,578
3,021,245 5,718,073
7,194,521 11,858,627
3,368,709 3,735,984
780,259 816,045
1,094,510 1,119,744
483,777 1,359,539
70,554,718 88,623,817
68,175,347 89,704,947 100,103,324
3,226,167
5,145,430
2,798,882
3,402,602
3,367,989
1,821,794
6,091,156
12,473,440
5,310,440
10,242,876
18,585,468
14,803,971
6,215,291
9,946,212
12,692,350
825,292
818,526
877,191
1,201,463
1,103.600
1,064,978
2,391,602
1,621,850
1,047,020
528,903
637,054
412,353
102,290,699 143,404,516 140,922,303
3,344,407 4,099,376 3,970,921 4,644,954 6,150,699
8,344,428 9,672,708 12,364,583 13,029,187 15,685,493
993,964 1,025,397 1,104,509 1,248,308 4,027,302
7,804,294 7,480,421 5,719,373 5,847,563 28,994,177
3,685,050 4,536,589 6,206,769 6,987,014 6,755,507
16,057,578 43,331,919 40,012,387 25,445,550 36,420,417
2,931,952 3,610,538 3,793,660 4,777,748 5,647,940
9,469,314 13,961,721 14,355,577 15,554,612 15,059,977
1,591,107 - -
17,561,994 21,448,147 25,756,321 35,958,291 36,498575
54,546,974 114,913,074 70,192,981 110,757,923 113.284,100 113,493,227 155,240,087
5353,632 49( ,925,396) 361,737 (22,134,106) 10,993,401) 29911,289 (14,317,784)
- 88,000,000 - 26,400,000 - - -
- 90,000,000 - -
- (19,955,000) - - -
17,911,515 64,255,590 23,887,256 154,613,662 49,248,081 35,828,335 60,954,576
(17,911,515) (65,255,590) (23,887,256) (154,613,662) (49,248,081) (35,992,525) (60,954,576)
146,603 - - 8,566,295 8,209,396 124,097
- 87,146,603 96,445,000 8,566,295 8,045,206 124,097
$ 5,353,632 37,221,207 361,737 74,310,894 $ (2,427,106) 371956,495 14( 193,687)
Debt service as a percentage of
Ononcapital expenditures 49.1% 54.2% 43.5%
The City of Lo Qurnta has elected to show only seven years of data for this schedule
OSource. City of la Qumta
U
U
57.9% 62.0°/n 65.5% 59.7%
0
129
CITY OF LA QUINTA
TABLE 7
'
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
'
Entire City (including Redevelopment Agency)
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Unsecured Exemptions Value
Percent Change
1998 2,305,593,997 18,844,880 (34,553,805) 2,289,885,062
N/A
,
1999 2,674,887,437 18,756,736 (38,580,062) 2,655,064,111
15.95%
2000 2,665,520,656 18,712,736 (39,914,784) 2,644,318,608
-0.40%
,
2001 3,162,945,116 30,599,753 (50,149,068) 3,143,395,801
18.87%
2002 3,789,678,041 32,607,713 (54,726,303) 3,767,559,451
19.86%
2003 5,412,382,710 40,940,877 (95,420,075) 5,357,903,512
42.21°%
'
2004 6,289,493,552 44,014,548 (113,037,003) 6,220,471,097
16.10%
2005 7,856,383,375 72,554,357 (115,071,146) 7,813,866,586
25.62%
2006 9,986,151,525 88,740,840 (99,245,721) 9,975,646,644
27.67%
'
2007 11,854,669,637 101,433,002 (89,688,505) 11,866,414,134
18.95%
NOTE:
'
In 1978 the voters of the State of California passed Proposition 13
which limited property taxes to a total maximum rate of 1 % based upon
the assessed value of the property being taxed. Each year, the assessed
,
value of property may be increased by an "inflation factor" (limited to a
maximum increase of 2%). With few exceptions, property is only re-
assessed at the time that it is sold to a new owner. At that point, the
'
new assessed value is reassessed at the purchase price of the property
sold. The assessed valuation data shown above represents the only data
currently available with respect to the actual market value of taxable
'
property and is subject to the limitations described above.
t
Source: County of Riverside Auditor -Controller '
1
130
'
CITY OF LA QUINTA
Assessed Value and
Estimated Actual Value of Taxable Property - Redevelopment
Agency
Last Two Fiscal Years
'
(m dollars)
Redevelopment Agency Project Area I
1
Fiscal Year
Taxable
Ended
Less' Assessed
Base
Taxable
June 30
Secured
Exemptions Value
Year
Increment
2006
3;962,433,928
_Unsecured
29,248,534 (11,604,295) 3,980,078,167
t99,398,233
3,780,679,934
2007
5;223,508,114
34,250,061 (36,913,004) 5,220,845,171
199,398,233
5,021,446,938
Redevelopment Agency Project Area 2
Fiscal Year
Taxable
Ended
Less: Assessed
Base
Taxable
June 30
Secured
Unsecured Exemptions Value
Year
Increment
—
2006
2,132,426,502
32,999,788 (54,125,422) 2,111,300,868
95,182,755
2,016,118,113
2007
2,764,306,279
50,616,017 (40,774,044) 2,774,148,251
95,192,755
2,678,965,496
Source: County of Riverside Auditor -Controller
I
I
I
I
I
I
I
u
0
TABLE8
I
131
CITY OF LA QIRNTA
TABLE 9
Wel am Ovnlapprng Progeny Tax Rees
(Rae pv SI on of aemm value)
Ua Tao Fiscal Y.
City
Coy
RmevAopmml
Rmcvebpniml
Rmevtbpnrml
Riel—I.pnml
NorvPsyeel Area
Non -Pro col Nea
Propel A.1
letup. Arta I
Pml¢I Arp 2
%ojul an. ]
IDG. t
2W7I
2W6,
200]r
nw,
3067e
Dmcl Wlo
cn,.Fu Qmw
oem,
one"
OOWO
oWW
own,
npau
RmerNopnml many Pml¢I Area 1
0o.2O]
00000
05930
0,5890
OgKKI
poop
Relcvebpnenl mercy Pml¢I M, 2
omm
ODow
OW00
o0W]
.2.
01920
Cnmvnfitt.de
o19W
02303
01410
.3.n
OyDll
034111
Cbnm, 1—1 ib—
00250
00273
OWIO
OWIO
it.11It
II Wtll
C.—II $vurwm Fne Prol¢non
0040
0056e
OW30
0W20
OW20
..20
Ca..bell, Wiley lCV. Omlm Scheel
.0320
OIV3
00120
00I10
OOMxI
000on
D[nn sam, lmrfm Stlml
Own
0211a
00160
00140
020W
01980
Dncn Common, College
00]W
0Vail
0W30
.W30
0ban
00a10
W,,ame, com, ORue ofEintaske
00390
004W
OWIO
0W30
00230
0012,
Nvmge Cpnmy Regrml Park ®Opa15p¢p
00000
00016
0.
UWW
OWW
000n
CV P'llit Cmxc
OW32
OW34
0.
0WW
OgICO
.won
CV Mopuno
0.127
0.1%
0.120
00in
n0l 10
o.14o
CV Park 4IlUx—lnn
00192
002%
OWIO
OWLI
0WW
OW60
CV WIt-Dia et
0021.
00272
00130
00130
OOT20
00]6p
CV Rmorte ConaervaWn
00ee,
00003
0MW
0Wby
O.
000g1
CVWO Union l lkbl 5eanet
Mix
Ooost
OOWO
OWW
0.W]0
00W0
CVWD Soon Wane, Unit
OORO
00313
0WI0
OWIO
O0010
0wo
Tout Dn¢I Rala
09992
IOWo
IOWO
IOWO
IDMp
IISCO
Ovalxppog Rncs" Tax Rale Area02U-003 Tax Rale axwMO005 Trt Bale Aren U20-0uRalc Ara p21N113 Tax PaleAm020,1d<Tax Roc AmON-lW
CIy o(U Oxon,
Cbarnvefanamm,
Ptvenbc [ amnv Ogee bf Pduwian
Rrverttle County Pemm D6hgm'ron
F—it SnMs Umfim
OW6]
00761
00]6]
C-chella Vaal, WnfiM khool District
Uatleila VWIev WYev Umr¢I
OON2
00,32
001"
Coachella Valle, Recreation @ battle Dtaxt
DIaMC., WIM DUNCI
Oat"
001"
002W
Total mFrb,mg Ram
0d109
01293
01175
Telal Doeel aW O,etYF Dil Rale
11401
11293
11175
NOTE
In I afifnmx b aepa4m Pem,WUO. II xhitln. WO pIgCIY Yz roe al x I raw .1 Wr dirml. Thin l WK le alWm 6ya1l taxing
,ea... foe wfirth the mbl¢'I baboon made, wiNm
Sou¢c CwmyofWvemde AmnnrCmneficegORc
t Urcel. fro. Tax aao. (TRAI WW V povlded by H61 Cmm A Cone and ovo-lappwg dead. fiction
Caldwell. Menier'l Suoviu
a On. rMe lakes fmm all tpfRDA TRA4 plovbm by We Oeuoky of Wvande and do rot trclbde ERAF dmued.,
am ovmluppnlgmm poemm by Calif an Manicrpnl Sondaia
Dnal rue take boat an vmlysa by We Gty of U Onion Flute Dupallmml ea60fall TlaA'9 in We Project area
am do not nplow Wne ERAF dmucuom and limixprwg moo, provided by Gltfmwa Municipal SlallalCS
'Utml mu uten fmm an malynu by We61yofUQniw Finarte DepamobletaRoftl111INnm Iluef maw
and Lb tat include Swe F.RAF deivetiom aM overltmpmg mo provWm by GWfwnra Munitip.J Slauarta
00761
00]6]
Oo]61
OA308
O.2
00131
.01"
00199
0.1.
O 1169 blow 0 093
1 1169 I.1a09 1 1293
I M03
132
'
CITY OF LA QUINTA
TABLE 10
Principal Property Taxpayers
'
Current Year and Nine Years Ago
(in dollars)
'
2007
1998
Percent of
Percent of
Total City
Total City
'
Taxable Taxable
Taxable Taxable
Assessed Assessed
Assessed Assessed
Taxpayer
Value Value
Value Value
'
_
KSL Desert Report, Inc
$ 389,142,025 3.28%
251,572,474 10.99%
Sams Real Estate Trust/Wal Mart
29,878,467 0.25%
CNL Desert Resort
26,280,884 0.22%
Watermark Granite La Quints
TD Desert Development
24,480,000 0.21%
25,611,489 0.22%
21,758,698 0.95%
Quarry at La Quinta, Inc.
23,145,749 0.20%
Aventine Development
21,911,864 0.18%
Apartments at La Quinta Village II
18,969,865 0.16%
Target Corporation
18,465,969 0.16%
One Eleven La Quinta
15,950,227 0.13%
$ 593,836,539 5.01%
NOTE :The amounts shown above
include assessed value data for both the City and the
Redevelopment Agency.
Source: HdL Coren & Cone
O
133
M1.3g011
CITY OF LA QUINTA
Property Tax Levies and Collections
Last Fiscal Year
(in dollars)
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2006 60,716,047 73,097,360 120.39% 2,092,065 75,189,425 123.84%
2007 79,752,191 74,533,984 93.46% 1,802,076 76,336,060 95.72%
NOTE
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule
also includes amounts collected by the City and Redevelopment Agency that were passed -through to other
agencies.
Source: County of Riverside Auditor Controller's Office
134
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type
Last Two Fiscal Year
(in dollars)
Governmental Activities
Reimbursement Agreement
Compensated Absences
Due to Coachella Valley Unified School District
Due to County of Riverside
Developer Agreement
Tax Allocation Bonds Project Area I
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bondi
City Hall Lease Revenue Bonds
Unamonized Discount and Issuance Costs
Total Governmental
Business -type Activities
Capital Leases
Total Business -type activities
Total Primary Government
TABLE 12
Fiscal Year Ended Fiscal Year Ended
2006 2007
$ 328,311 $
278,311
608,266
734,055
5,186,627
4,431,178
1,850,000
1,750,000
776,030
643?39
141,785,000
139,145,000
6,130,000
6,025,000
89,265,000
87,745,000
6,245,000
5,900,000
(877,230)
(877,230)
251,297,004
245,774.853
1,090,602 825,848
1,090,602 825,848
$ 252,387,606 $ 246,600,701
Population- State Department of Finance January l
38,340
41,092
Number of Households
18,762
20,176
Median Household Income
$ 65,906 $
67,754
Percentage of Personal Income
20,41 %
18 04
Debt Per Capita
$ 6,583 $
6,001
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
'The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2
low & moderate income tax increment.
135
CITY OF LA QUINTA
Ratio of General Bonded Debt Outstanding
Last Two Fiscal Years
(In Dollars)
TABLE 13
Outstanding General Bonded Debt
Fiscal Year City Hall Lease 2004 Tax Percent of
Ended Lease Local Agency Allocation Assessed Per
June 30 Obligation Revenue Bonds I Bonds Total Value Capita
2006 6,245,000 89,265,000 147,915,000 243,425,000 2.44% $ 6,349
2007 5,900,000 87,745,000 145,170,000 238,815,000 2.01% $ 5,812
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
Source: City of La Quinta
136
I
' CITY OF LA QUINTA TABLE 14
' Direct and Overlapping Debt
June 30,2007
City Assessed Valuation $ 4,166,001,700
' Redevelopment Agency Incremental Valuation 7,700,412,434
Total Assessed Valuation $ 11,866,414,134
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage
Outstanding Overlapping
'
Applicable'
Debt 6/30/07
Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
'
Desert Community College District 6.420%
Coachella Valley Unified School District 25.590%
$ 63,006,886
94,897,458
4,045,042
24,284,260
Desert Sands Unified School District (DSUSD) 7.628%
236,666,277
18,052,904
DSUSD Lease Tax Obligations 7.628%
16,625,000
1,268,155
Coachella Valley County Water District I.D. No. 55 80.771%
4,995,000
4,034,511
Coachella Valley County Water District I.D. No. 58 7.095%
2,345,000
166,378
DSUSD Community Facilities District No. 1 100.000%
2,000,000
2,000,000
City of La Quinta 1915 Act Bonds 100.000%
- 1,940,000
1,940,000
Coachella Valley Water District Assessment District No. 68 86.247%
2,320,000
2,000,930
Total overlapping debt repaid with property taxes
424,795,621
57,792, I80
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations 1.293%
$ 643,021,333
8,314,266
Riverside County Pension Obligations 1.239%
Riverside County Board of Education COP 1.239%
392,890,000
10,275,000
4,867,907
127,307
Coachella Valley Unified School District COP 25.590%
54,930,000
14,056,587
DSUSD COP 7.628%
13,220,000
1,008,422
Coachella Valley County Water District I.D. No. 71 COP 9.475%
7,485,000
709,204
Coachella Valley Recreation and Park District COP 11.029%
2,565,000
282,894
Total overlapping otherdeot
1,124,386,333
29,366,587
Total overlapping debt
$ 1,124,386,333
87,158,767
City direct debt
252,387,606
0
Total direct and overlapping debt
$
339,546,373
Notes.
For debt repaid with property taxes, the percentage of overlapping debt applicable is
estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
aOverlapping
governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is home by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each
Q
overlapping government.
Source California Municipal Statistics, Inc.- overlapping debt
Source. City of La Quinta - City Direct debt
137
CITY OF LA QUNTA
Legal Debt Margin Information
Last Seven Fiscal Years
( in dollars )
TABLE 15
Fiscal Year
2001
2002
2003
2004
2005
2006
2007
Assessed valuation S
3,143,395.801
3,767,559,451
5.357,903,512
6,220,471,097
7,813,866,586
9,975.646,644
11,866,414.134
Debt limn percentage
15%
15%
15%
15%
15%
15%
15%
Debt limn
471,509,370
565,133,918
803,695,527
933,070,665
1,172,079,989
1,496,346,997
1,779,962,120
Total net debt applicable to limit:
General obligation bonds
Legal debt margin S
471,509,370
565,133,918
803,685,527
933,070,665
1,172,079.988
1,496,346,997
1,779,962.120
Total debt applicable to the limn
as a percentage of debt limit
0.0%
0.0%
0.0%
0.0%
0.0%
00%
0.0%
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 Quints has no general bonded indebtedness.
Source: City of La Quints Finance Department based upon the Assessed valuation received from the
County of Riverside Auditor Controllers Office
138
'
TABLE 16
CITY OF LA QUINTA
Pledged -Revenue Coverage
'
Last Fiscal Year
(In Dollars)
Tax Allocation Bonds - Project Area 1
Fiscal Year
Ended
Tax
Less: Other Net Tax
Debt Service
June 30
_Increment
Debt Payments Increment I
Principal Interest
Coverage 1
2006
26,506,201
20,638,731 15,867,470
2,500,000 7,805,905
1.54
'
2007
42,029,503
20,820,149 21,209,354
2,640,000 7,658,900
2.06
Tax Allocation Bonds - Project Area 2
Fiscal Year
'
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
_Increment
Debt Payments
Increment I
Principal
Interest
Coverage
2006
19,849,893
17,325,411
2,524,482
100,000
319,168
6.02
2007
20,777,158
18,553,875
2,223,283
105,000
314,785
5.30
2004 Local Agency Revenue Bonds
Fiscal Year
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
Increment
Debt Payments
Increment
Principal
Interest
Coverage
2006
114,089,024
0
14,089,024
735,000
4,436,981
2.72
2007
1.5,701,664
0
15,701,664
1,520,000
4,402,909
2.65
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Ended Lease Less: Other Net Lease Debt Service
June 30 _Revenue 2 Debt Payments Revenue Principal Interest Coverage
2006 680,575 0 680,575 330,000 350,575 1.00
2007 678,865 0 678,865 345,000 333,865 1.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements,.
Tax increment has been reduced by other debt payments, which may or may not be subordinated to Tax
Allocation Bonds
a Lease revenues consist of payments from the City General Fund, Civic Center Development Impact Fee Fund
and the Redevelopment Agency Capital Projects Fund
a3 Tax increment revenues from both Project Area 1 and Project Area 2 Low & Moderate Income Funds are
used to pay the annual debt service payments.
U
a
139
City Land (Sy Miles)
Population
Median Household Income (in dollars)
Number of Dwelling Units
Persons per Household
Average Income per person per household
Labor Force
Employment
Unemployment Rate
Median age
CITY OF LA QUINTA
Demographic
and Economic
Statistics
Last Two Calendar Years
Calendar
Calendar
Year
Year
2006
2007
(3)
35.1
351
(1)
38,340
41,092
(4)
$65,906
$67,754
(3)
18,762
20,176
(3)
2.855
2.846
$23,084
$23,807
(2)
14,500
15,300
(2)
14,100
14,900
(2)
2.76%
261%
(3)
36
36A
Sources (1) State of California Department of Finance - January I of each year
(2) State of California Economic Development Department website
(3) City of La Quinta Building & Safety and Community Development Departments
(4) Desert Wheeler's Newsletter City Overview
TABLE 17
140
CITY OF LA QUINTA TABLE 18
' Principal Employers
Current Year and Nine Years Ago
'
2007
19982
Percent of
Percent of
'
Employer
Activity
Number of
Employees
Total
Employment
Number of Total
Employees Employment
La Quinta Resort & Club
Hotel & Golf Resort
1,600
10.74%
1,500
'
Wal-Mart Super Center
Retail
800
5.37%
250
'
Rancho La Quinta
Golf Resort
700
4.70%
PGA West Club
Golf Resort
500
3.36%
1,100
Home Depot
Retailer
240
1.61%
-
Imperial Irrigation District
Public Utility
200
1.34%
Lowe's Homei Improvement:
Retailer
150
1.01%
Albertsons
Grocery Store
-
0.00%
126
Stater Brother's
Grocery Store
150
1.01%
Tradition Golf Club
Golf Resort
100
0.67%
Ralph's
Grocery Store
88
0.59%
100
Total employment listed
4,528
30.39%
3,076 Not Available
Not Available
Total City Employment - July 1
14,900
"Total Employment" as used above represents the total employment of all employers located
within City limits with over 100 employees
Source: Riverside County Economic Development Department and the City of La Quinta
Source: Riverside County Economic Development Department and the City of La Quinta
'The Albertsons Grocery Story was sold to Stater Brothers and is no longer located in the City
2 The total City employment and % applicable for 1997 was not available
I
U
u
141
CITY OF LA QUINTA
Full-time City Employees
by Function
Last Three Fiscal Years
Function
Administration
City Clerk
Finance
Community Services
Building and Safety
Planning and Development
Public Works
Golf Course
Total
Source: City of La Quints
TABLE 19
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
June 30
June 30
June 30
2005
2006
2007
8.00
9.00
10.00
5.00
5.00
5.00
8.00
9.00
9.00
8.00
10.25
10.25
21.00
22.00
24.00
9.00
12.00
12.00
23.50
26.25
26.25
0.50
0.50
0,50
83.00
94.00
97.00
NOTE: The City of La Quinta contracts with the County of Riverside for Police
Services and with the California Department of Forestry through a contract with
the County of Riverside for Fire Services. In addition the City -owned Golf
Course is operated by Landmark Golf. These positions have not been included
as these positions are not City employees.
142
'
CITY OF LA QUINTA
Operating Indicators
by Function
'
Last Two Fiscal Years
2006
2007
Finance:
Number of Active Business Licenses
3,208
3,424
Number of Active Animal Licenses
992
1,022
Number of Accounts Payable Checks Processed
4,696
4,722
Number of investment purchases
39
73
Par value of investments
$327,417,000
$392,729,000
'
Number of cleared checks
Number of outgoing bank wires
5,081
202
4,837
158
Public Works:
Encroachment permits issued
304
218
Request for services
618
419
'
Building & Safety;
Permits
Single family Detached
1,044
526
Single family Attached
227
38
'
Residential Pool
866
612
Wall/Fence
L502
963
Other
1,607
1,404
Total Permits
5,246
3,543
Code Compliance
Animal Control Incidents Handled
1,901
687
Vehicle abatements
909
296
Gamge Sale Permits
1,190
1,444
Weed abatements
141
76
Nuisance abatements
1,611
2,032
Community Services:
Library activities'
Library Volume
42,050
44,981
Library books checked out
55,002
99,659
Library Cards Issued
5,550
5,325
Number of School Children Visiting Library
745
260
Library Volunteer Hours
1,891
1,583
Senior Center
Number of visits
14,305
12,955
Senior Center Volunteer Hours
3,481
4,192
Recreation activities
Participants
Leisure Classes
1,373
1,192
Special events
4,668
7,809
Adult Sports
3,402
6,827
Golf course:
a
Golf rounds played
38,934
40,548
Average $ Green fee
71.12
76.97
Planning and Development:
Number of residential units approved
1,063
534
Commercial square footage approved
533,726
124,821
USource: City of La Quints
I
TABLE20
a
143
CITY OF LA QUINTA
Capital Asset Statistics
by Function
Last Two Fiscal Years
Public works:
Streets (miles)
Bikepaths (miles)
Streetlights
Traffic signals
Traffic Signs
Bridges
Parks and recreation:
Parks
Park Acreage
Senior Center
Museum
Library
Golf Course:
Municipal golf courses
Source: City of La Qumta
Fiscal Year
Ending
June 30
2006
118.40
22.00
73
44
2,799
12
12
234
1
1
1
1
Fiscal Year
Ending
June 30
2007
122
22
85
47
2,845
12
12
226
1
1
1
1
TABLE 21
144
1 NZPA
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2007
Company Name
Policy Number
Coveraee
Limits
Term
Premium
Hartford
PEBAO7068
Employee Dishonesty,
$1,000,000
02/03/07 - 08
$2,976
Forgery, Computer Fraud
Lexington
I115849
All Risk Property Insurance
40,900,000
07/01/07- 08
43,869
Including Auto Physical Damage
(Excluding Earthquake)
Pacific Ins
Z00036149
Earthquake & Flood
7,500,000
02/07/07 - 08
113,000
Endurance Iris
10000326200
Real & Personal Property
Including Contingent Tax Interruption
California
Certificate #5
Comprehensive General $0
Deductible Retention
07/O1/07 - 08
255,568
Joint Powers
Liability
$50 Million
Insurance Authority
California Certificate
Joint Powers #5009-056
Insurance Authority
Worker's Compensation
5,000,000 07/01/07 - 08 172,288
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