2008 12 10 IAB�►�
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CAI.I.F. TAMPICO
LA QUINTA, CALIFORNIA 92253
AGENDA
INVESTMENT ADVISORY BOARD
Finance Conference Room
78-495 Calle Tampico- La Quinta, CA 92253
December 10, 2008 - 4:30 P.M.
CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
(760) 7 7 7 - 7 0 0 0
FAX (760) 777-7101
II PUBLIC COMMENT- (This Is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
Approval of Minutes of Meeting on November 12, 2008 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for October, 2008
B. Continued Consideration of the Fiscal Year 2008/2009 Work Plan
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. City of La Quinta FY 07/08 Audited Financial Statements
B. Month End Cash Report - November, 2008
C. Pooled Money Investment Board Report - September, 2008
D. November 25, 2008 Joint Meeting Minutes with the City Council
VII BOARD MEMBER ITEMS
VIII ADJOURNMENT
E
INVESTMENT ADVISORY BOARD
Meeting
November 12, 2008
CALL TO ORDER
Regular meeting of the La Quinta Investment Advisory Board was called to order at the
hour of 4:30 p.m. by Chairman Ross, followed by the Pledge of Allegiance.
PRESENT: Board Members Ross, Moulin, Park and Board Member
Daniel (4:40)
ABSENT: None
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior
Secretary
II Public Comment — None
III CONFIRMATION OF AGENDA
Mr. Falconer requested that the synopsis handout be added to the agenda under
Item B, Correspondence and Written Material.
Mr. Falconer advised that staff received proposed changes to the meeting
minutes from Board Member Daniel and she requested that they are added as
amendments to the meeting minutes.
IV CONSENT CALENDAR
A. Approval of Minutes of Special Meeting on October 15, 2008 for the
Investment Advisory Board.
Staff advised of the proposed changes by Board Member Deniel as
follows:
Page 2: Business Session A, second paragraph should read:
Mr. Falconer advised that at the previous Board meeting, there was a
discussion by Board member Moulin regarding the yields of treasuries and
modification of the 30% cap for a # GSE's with the investment policy,
I ... I
Page 3: Business Session A, fourth paragraph should read:
Board member Daniel stated that the stability of the portfolio is based ori.
what is allowed to invest in.
Investment Advisory Board
Minutes
November 12, 2008
Page 5: Business Session B, fifth paragraph should read:
Board Member Denial advised that page 3 was very viable useiul to the
Board [... I
Page 6: Item in question, was page 5 not required or required:
Should read: Page 5: Required
Board Member Rassi advised of the following corrections:
Page 7: second paragraph should read:
In response to BoardMember Daniel, Mr. Falconer advised that the TOT
collected by thehotel is paid directly to the City a month after it is dae
Page 7: sixth paragraph should read:
Board Member Rassi commented that he felt that the suggested changes
ky_Board-Member Wulin to the Treasurer's Report would be as of r
advantage to the Treasurer's functions.
Board Member Daniel suggested that after each agenda item discussed,
that a summary be given for clarity of the meeting minutes. Board
concurred.
MOTION - It was moved by Board Members Rassi/Park to approve the
minutes of October 15, 2008, as amended. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for September 2008
Mr. Falconer presented and reviewed the staff report advising the Board
that the portfolio decreased by $17 million due to the following: $11
million in debt service payments, $6.2 million in capital projects, $4.7
million in low -moderate income apartments located on Avenue 48'h and
Adams Street, along with bridge improvements at Avenue 52, in addition
to street improvements along Highway 111, and the balance of
$200,000 in SilverRock.
2
Investment Advisory Board
Minutes
November 12, 2008
Mr. Falconer reported that the portfolio maturity remained the same, with
the 30% commercial paper limitation met due to the portfolio decreasing
in size. Mr. Falconer also reported that a Freddie Mac piece matured but
was not reinvested due to the decline in cash balances; therefore it was
replaced with a six-month T-Bill. The overall portfolio performance has
decreased due to the current market, with the yields decreasing to
2.64% and the pooled cash investments at 2.81 %.
Mr. Falconer advised that his last three investments have been in T-Bills,
again due to the commercial paper limitation.
Board Member Moulin advised of the items discussed by the State
Treasurer, stating that it was to difficult to implement any type of help
with the consumer's mortgages, and further stated that the State will
give the money directly to the banks for distribution/application of the
funds.
It was also reported that the spreads on interest have narrowed with no
clarification whether GSE's have or do not have the full faith and credit
by the U.S.
MOTION - It was moved by Board Members Deniel/Moulin to approve,
receive and file the Treasury Report for September 2008. Motion carried
unanimously.
B. Discussion of Matters of Joint Interest to the Members of the City Council
and the Investment Advisory Board
Chairman Ross advised the Board of the scheduled joint meeting with the
City Council and the Investment Advisory Board on November 251h, 2008
at 7:00 p.m. in the Study Session room. He further advised that the
Board would need to submit items of discussion prior to the meeting so
that they can be placed on the agenda.
All Board members will be in attendance with the exception of Board
Member Moulin.
In response to Chairman Ross, Mr. Falconer advised that he would like to
discuss the investing of U.S. Treasuries,
The Board agreed to list the following as items to be discussed:
1) Thank Councilman Osborne for his years of service on the Investment
Advisory Board and City Council, along with congratulating Mayor
3
November 12, 2008
Investment Advisory Board
Minutes
Adolph on his reelection to Mayor as well as to Councilman Sniff for
his reelection, and Councilwoman Franklin to her election to Council.
2) Reiterate the objectives of the investment policy; safety, liquidity and
yield.
3) Treasurer to discuss investing in U.S. Treasuries and the consequent
result of investing in U.S. Treasuries would be the lowering of the
yields.
MOTION - It was moved by Board Members Park/Deniel to approve the
discussion matters for the joint meeting on November 25, 2008.
C. Continued Discussion of the Investment Advisory Board 2008/09 Work
Plan
Mr. Falconer advised that page 7 reflected the recommended changes
from the previous Board meeting. Mr. Falconer stated that he felt that
the Board wanted to improve the Treasurer's Report without deleting any
pages from the report.
The Board along with Staff reviewed the Treasurer's Report and
made the following recommendations:
Page 2 & 3: Pages 2 & 3 are to be retained with no necessary
changes/deletions.
Page 4: Board concurred, along with the Treasurer to remove the
columns titled "surplus," in addition to the row titled "Investments
Agreements for Bond Proceeds and/or Reserve Funds."
Page 5: It was agreed upon by the Board to delete the columns
entitled "Surplus" and "Rank," the column "Book" will now read "Book
Value."
Page 6: It was agreed upon by the Board to delete the columns
entitled "Surplus" and "Rank," the column "Book" will now read "Book
Value."
Mr. Falconer advised of the three changes made to page 7 derived from
the previous Board meeting, the recommended changes were as follows:
Deletion of the "Par" column, the break down of purchases and maturities
of the bond funds, with the report reflecting $5 million maturing in
interest income in Money Market Mutual Funds, in addition to a separate
line item for checking and savings, which was previously reflected under
m
Investment Advisory Board November 12, 2008
Minutes
"Yield to Maturity."
Page 7: The following changes were agreed upon by the Board:
reconcile page 7 to page 2, on page 2 the Treasurer needs to segregate
purchases from sales, the title "Mutual Funds" will remain as "Mutual
Funds," due to the source of the mutual fund purchases not being
identified, the second line of Mutual Funds will read "Reinvested Interest
Income" as opposed to Interest Income, and the sales will read "Mutual
Funds" in place of "Bond Draw."
MOTION - It was moved by Board Members Rassi/Deniel to approve the
suggested changes and continue the discussion of the Fiscal Year
2008/09 Work Plan to the December meeting.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report — October 2008
Mr. Falconer advised of the decrease in interest rates in LAIF and in U.S.
Treasuries.
Noted and Filed
B . Pooled Money Investment Board Report — August 2008 and LAIF
Conference Materials
Mr. Falconer advised of the record setting attendance at this year's LAIF
Conference. He further advised that in previous years, (with anywhere
from $800 million to $1 billion to invest), the investments made by the
State were normally completed within 10 minutes. This year, they were
still investing after a half hours time; due the unavailability of quality
commercial paper, most investments made were placed into six-month T-
Bills.
Chairman Ross commented that the State had sold $5 billion of the
Revenue Anticipation Notes with a settlement date of six days.
Mr. Falconer advised that the State's focus has changed and their main
focus is now towards safety and credit analysis, with no investments in
asset backed commercial paper with more conservative investments.
Chairman Ross advised that it was reiterated that LAIF is secure from the
State and those cities with monies invested in LAIF belong to them.
b7
Investment Advisory Board
Minutes
November 12, 2008
Chairman Ross commented on two items of interest at the LAIF
Conference: the first one was $70 million in Country Wide Notes in the
pooled money account and the downgrade of these securities, and the
discussion by the Chief Investment Officer and the Finance investment
staff to keep or sell the securities. The matter was taken before the
State Treasurer and the decision was to keep the securities, at which
time Bank of America took over the guarantees. The second item of
interest was the actual investments of the remaining revenue anticipation
note proceeds and an offer from General Mills for $400 million in
commercial paper at 4%, and the Chief Investment Officers decision to
pass on the offer because he felt it was a warning signal that their need
for cash might be to great for the times.
In response to Board Member Daniel, Mr. Falconer advised that the City
has never invested in Lehman Brothers paper although other cities and
counties do hold this type of commercial paper.
Noted and Filed
VII BOARD MEMBER ITEMS
In response to Chairman Ross, Mr. Falconer advised that the reporting period for
Form 700 is usually during the calendar year and will need to be filed sometime
in April.
Vill Adjournment
MOTION - It was moved by Board Members Deniel/Moulin to adjourn the
meeting at 5:55 p.m. Motion carried unanimously.
S mitted b ,�
Vianka Orrantia,
Senior Secretary
2
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: December 10, 2008
ITEM TITLE:
Transmittal of Treasury Report
for October 31, 2008
BACKGROUND:
Attached please find the Treasury Report October 31, 2008.
Review, Receive and File the Treasury Report for October 31, 2008.
M. Falconer, Finance Director
T4&t 4 Zry 091Kto
MEMORANDUM
TO La Quinta City Council
FROM John M Falconer, Finance DirectortTreasurer
SUBJECT- Treasurer's Report for October 31, 2008
DATE. November 30, 2008
Attached is the Treasurers Report for the month ending October 31, 2008 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
Be innin
Purchased
Notes
Sold/Matured
Other
Endin
Chan e
Investment
$ (8,357)
(1)
$ (1,467,516)
$ C 1 5.933)
$ (1,467,576)
(1,365,973)
Cash (3)
49,253,920
2,534,027
(3,900,000)
0
47,887,947
38,857,460
5,012.721
LAIF
US Treasures (2)
33,844 739
5,000,000
12,721
49 272
47,gfi3,266
49,272
US Gov't Sponsored Enterprises (2)
47,813,994
45.041
21,973,372
45,041
Commercial Paper (2)
21,928.331
(3,000,000)
2.858
4,988,692
(2,997,142)
Corporate Notes
7.985,834
7,834
1
8,010,004
90,276
8,002.170
Mutual Funds
8,092 446
$ 168,910,907
$ 7,541,861
$ 16,377,580
$ 109,892
$ 160,185,080
$ 8,725,827)
Total
I certify that this report accurately reflects all pooled investments and is in compliance with the Calitornia
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.
1Z j Zo0$
Date
John M Falconer
Finance Director/Treasurer
Footnote
(1) The amount reported represents the net increase (decrease) of deposits and withdrawals from
the previous month
(2) The amount reported in the other column represents the amortization of premium/discount for the
month on US Treasury, Commercial Paper and Agency investments
(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
F,
Treasurer's Commentary
For the Month of October 2008
Cash Balances — The portfolio size decreased by $8.7 million to $160 million. The major
reason for the decrease was $8 million in payments for major capital projects including Ave
481h/Adams Apartments and Vista Dunes Courtyard Homes.
Investment Activity — The average maturity of the portfolio increased by 4 days to 55 days at
the end of October. The Treasurer follows a buy and hold investment policy and has not sold
investments before maturity to take advantage of market conditions. A maturing GE medium
term note was replaced with a U.S. Treasury Bill. The sweep account earned $235 in interest
income for the month of October and the bank fees for the month were $ 2,050 which
resulted in a net decrease of $ 1,815 in real savings.
Portfolio Performance — The overall portfolio performance decreased by three (3) basis points
from the prior month and ended at 2.61 % for the month, with the pooled cash investments
yielding 2.66%. This decrease was lower than would have been expected because of an $8
million bond draw in U.S Treasury Money Market Funds in October. With the average maturity
of 48 days, the portfolio yield should remain at these levels for the next three months with a
small downward trend based upon reinvestments at lower rates. 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 5.02%
which reflects the current interest rate environment.
Future Thoughts
Due to the current liquidity crisis impacting financial and business institutions the Treasurer is
concentrating on safety first and foremost. In the short term, the Treasurer will be
maintaining LAIF balances at the maximum allowable percentage because its rate declines
slower in a declining rate environment. The Treasurer will not be investing in corporate notes,
commercial paper or GSE's due to the current economic conditions affecting the financial
markets; but instead will be investing in short term (less than one year) U.S. Treasury Bills.
Bond proceeds will be laddered in three- and six-month Treasury bills as they mature.
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RemnmNamn Of Annual and Sake Funds
Uy Redevelopmem A9emy and Finanmq A deny
OdNaer31 2008
SW. of audeal Furs IN 185,080
Le55 Red, cash Furs (1,250)
Less NumSurplus FuMS 2,152,171
BaUnre of Su IuS Furs 5158,031.659
C CasM1 6lnvasbnmh
Bank Acmunls
Name-Avatla6i10
Sur lus
i
Burk
Surplus
Yes
Ad
Surylus
Yes
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No
LM1ecMiy
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5
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No
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Yes
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Yes
] P.21,Jul
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Surylus
No
Ad
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All Furs
Annual%
Surylus
Yes
6121]%
65160%
Surylus
No
Ad
Surplus
No
IIFurs
Aurylus
Actual%
S
Yes
3083d]%
312672%.
SuryWS
No
Ad
$wpus
No
AN Funds
Annual Y.
Surplus
Yes
121J8%
11509%
Surylus
No
Ad
Surplus
NP
All Fares
Actual °.,
Surplus
Yes
14 1558%
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Surplus
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All Furs
Annual %
Surplus
Yes
p pp06x
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swplus
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Yes
Yes
USTreawry B�II
USTreaw Bill
1J,950,]96
9,9]0562
1J,958 ]86
9,9]p,562
tJ,950,]66
9,9I0,562
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2]929]46
2J 929 ]dR
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TN54 -A nelN
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Wky Martel
Mutual Fund
Back
Value
Surplus
Yes
Adl
Salles
Yes
Crv¢Cemet U S BankPulledYES
1.Amenran
Civic Cak,USBank.D¢MSvc
YES
tNAmengn
1991 RDA U S Bank -Debt Svc
YES
istAmemmN
1
1
1
1995 RDA U 5 Band -CIP
YES
19Alk a
1935 RDA U S Bank - Spenal Fur
YES
151 Annemm�
2601 R. AM- 1995 US Bank- E5ucw
YES
Ua Amencan
1998 RDA U S Bank - LIP
YES
19 Ammran
1M RDA S Bak -OM Svc
YES
Ial Amenwn
1990ROAUSBank�Speoal Fur
YES
1AAmera-
1998RDAUSBmM-CIP
YES
9Ameran
2001 RDA U$Oak -DN Svc
YES
1. American
2001 RDA U S Bak-CIP
YES
1st American
2M RDA VS Bank - OM Svc
YES
19 Amencan
2032 RDA US Bank -CIP
YES
19Amencan
84,709
&709
84,709
2003 Taxable RDA U S Bank -DS
YES
19Amencan
213TaxaWROAU S Bank -COY
YES
Ist Amenwn
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YES
19Amemmn
2W6Fm AuNUS Oak:CIP
YES
1sYAmencan
5566
550
5,5N
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YES
1MAm,.n
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90,276
W276
At,226
$YryJUs
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Ad
$urylus
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AIIFunG
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$urylus
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15 dI5Ae1
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AIIFurs
Actual k
Surylus
Y¢s
00582%
00590%
Total Fiscal Agent bresbrcns 2{.01969{ 24.019,624 2d,01962d 15 ON% 156911%
Grand Tatar 155.i29.09] 161.710.022 ].6]6A6319,0]6,111 1524,942 ;6]6.]63 12.15].{il 1000000 1000000%
10
City of Le Oumta
Compamave Rates of Interest
October 31. 2008
Year
Month
FY02/03
July 2002
August 2002
Sapt2002
C t2002
Nov, 2002
Dec 2002
Jan 2003
Feb 2003
Mar2003
Apr2003
May 2003
June 2003
FY ON04
July 2003
August2003
S.pt2003
Oc12003
Nov 2003
Dec 2003
Jan 2004
Feb 2004
Mar 2004
Apr 21k14
MaY2004
June 2004
F Y 04105
July 2004
August2004
Sep12004
Oct 2004
Nov 2004
Dec 2004
Jan 2005
Feb 2005
Mar2005
Apr2005
May 2005
June 2005
FY OW06
July 2005
Auguet2005
Sept 2005
002005
Nov 2005
Dec 2005
Jan 2006
Feb2006
Mar2006
Apr 2006
May 2006
June 2006
FY O6/07
July 2006
Augus12006
Sep12006
O02006
Nov 2006
Dec 2006
Jan 2007
Feb 2007
Mar 2007
Apr2007
May 2007
June 2007
FY OINB
July 2007
August 2001
Sept 2007
Oct 2007
Nov2002
Dec200I
Jan 2008
Feb 2006
Mar2008
Apf 2008
May 2008
June 2006
FY 08/09
July 2008
Augus12008
Sept 2008
Oc12098
Nov 2008
Dec 2008
Jan 2009
Feb 2009
Mar2009
Apr2009
May 2009
June 2009
City of La Quinta
Annuahzu l Eamm s
Pooled Cash Fiscal Area Nerzll
246%
100%
205%
245%
127%
207%
246%
126%
210%
241%
100%
208%
232%
100%
202%
223%
100%
180%
211%
080%
162%
199%
059%
1_74%
201%
075%
178%
1 98%
0 72 %
1 76%
186%
073%
154%
173%
049%
140%
166%
052%
143%
165%
045%
135%
165%
049%
126%
159%
048%
136%
164%
648%
138%
167%
059%
141%
158%
030%
137%
165%
030%
138%
150%
050%
133%
150%
050%
133%
1 54 %
0 50 %
1 36%
169%
047%
162%
173%
050%
168%
173%
0 50 %
1 57%
179%
107%
168%
179%
114%
172%
179%
143%
123%
189%
223%
208%
200%
225%
212%
216%
226%
222%
216%
267 %
243%
227%
269%
249 %
247%
270%
258%
259%
310%
283%
265%
311%
287%
264%
311%
281%
307%
348%
320%
333%
351%
334%
370%
353%
355%
381%
363%
367%
411%
400%
406%
414%
401%
409%
421%
445%
431%
430%
446%
437%
467%
448%
460%
474 %
498%
463%
493%
500%
498%
494%
501%
497%
498%
501%
499%
500%
502%
501%
504%
503%
503%
508%
504%
506%
518%
512%
516%
519%
513%
512%
521%
503%
515%
520%
514%
515%
520%
505%
516%
519%
488%
510%
521%
490%
512%
517%
485%
508%
516%
486%
506%
511%
485%
502%
503%
483%
498%
495%
343%
445%
458%
333%
422%
412%
324%
385%
407%
263%
367%
345%
327%
341%
314%
327%
317%
309%
194%
286%
299%
193%
277%
316%
192%
288%
281%
192%
264%
266%
227%
261%
172
139
21
09
163
137
131
117
92
]4
123
131
110
80
121
98
117
140
120
155
137
137
209
214
122
16➢
112
113
145
109
104
120
93
64
113
)3
84
]6
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96
68
112
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92
67
18
95
48
53
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fit
80
6a
45
6>
42
32
85
129
109
129
116
99
123
96
86
]4
82
63
80
62
51
55
48
Three Month
1 64%
2 59%
162%
260%
155%
249%
1 29%
2 30%
127%
231%
116%
210%
120%
195%
1 18%
1 98%
1 17%
1 86%
1 10%
180%
086%
170%
0 98%
165%
106%
163%
101%
164%
104%
I60%
103%
157%
0 99%
1 55%
100%
153%
101%
144%
01%
147 %
19%
1 45%
138%
143%
1➢3%
143%
1 y4%
160%
1 78%
1 67%
195%
177%
204%
189%
2 3y%
2 00%
2 56%
2 13%
256%
226%
2 85%
2 37%
2 85%
2 37%
3 09%
2 72%
3 11 %
2 86%
3 22%
2 9/%
354%
308%
369%
318%
375%
332%
375%
346%
4 16 %
3 64%
420%
381%
444%
396%
458%
404%
463%
414%
474%
431 %
4 84%
4 %%
511%
470%
506%
485%
497%
495%
500%
502%
4 96%
510%
4 94%
513%
490%
513%
498%
516%
495%
518%
488%
521%
4 84%
5 22%
481%
525%
481%
525%
480%
526%
459%
525%
400%
523%
395%
514%
33a%
496%
3 39%
4 80%
231%
462%
207%
4 16%
1 50 %
3 78%
120%
340%
192%
307%
2 14%
2 89 %
170%
1 88%
229%
218%
279%
169%
189%
214%
208%
278%
142%
179%
196%
213%
271%
090%
140%
172%
207%
271 %
11
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INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: December 10, 2008
ITEM TITLE:
Continued Consideration of the Fiscal Year 2008/09 Work Plan
BACKGROUND:
At the November meeting the Board reviewed pages one through seven of the
Treasurer's Report prior to meeting adjournment. These changes have been
reflected in the October Treasurer's Report.
RECOMMENDATION:
Continued consideration of this item with a recommendation to the City Council of
any changes to the Fiscal Year 2008/09 Investment Policy.
A4�-M tvriGoN�
Jo M. Falconer, Finance Director
NOTE: Please bring the backup materials included in previous meeting agendas for
reference.
ATTVMi1191MT 1
John Falconer
From:
donbarm@aol.com
Sent:
Friday, August 08, 2008 3:44 PM
To:
John Falconer
Subject: Cash Flow Forecasts
John, in my Google search of cash flow forecasts, I noted a couple of web sites that may be helpful
htttp://www.estor_egfoa .org/Sta.ticConte nt/staticpages/TM04. 07.htm
http:Hwwwl.worldbank.org/publicsector/pe/befa05/F-xecutionfm is.doc
Also noted is the Ethics and Conflicts of Interest section of the IP of Bloomington, Minnesota. Please
copy and distribute at the next meeting of the IAB. For information only
Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from conducting personal
business activity that could conflict with proper execution of the investment program, or which could
impair their ability to make impartial investment decisions. Investment officials shall annually disclose
to the City Clerk any material financial interests as required by state statute on an annual Statement of
Economic Interest form. Employees and officers shall subordinate their personal investment transactions
to those of the City, particularly with regard to the time of purchases and sales, and shall refrain from
undertaking personal investment transactions with the same individual with whom business is conducted
on behalf of the City.
Don
It's time to go back to school! Get the latest trends and gadgets that make the grade on AOL Shp ink.
2
8/8/2008
4. Treasury and Government financial management information systems
4.1 Managing cash
Cash (mostly in the form of money held at the bank) is a scarce resource and must be
managed to provide optimum benefit. Some cash is held for transaction needs and some
is held against contingencies. But above this level, idle balances should be invested in a
form that gives quick access and little risk in order to earn interest. Money can be
borrowed, but this costs money and should be carefully controlled because it increases
financial risk. Borrowing may also take time to put in place and this will effect how
much cash has to be held for contingencies. A government is ill-advised to borrow, if it
already has the available cash resources because the rate of interest on borrowing is
higher than the rate of interest received on surplus cash balances, which in many cases
may be zero.
With such principles in mind, governments monitor movements in their cash resources.
They seek reports on cash balances (e.g. bank statements from the central bank). They
also consider the likely incidence of cash flows both inward and outward. A cash flow
occurs when the cash actually moves, so cash flows have very little to do with accrual
accounting, which is based on different principles. To estimate cash flows involves
forecasting cash flows associated with revenues and expenditures (both current and
capital); and with borrowing and lending (including repayments). Expected cash
balances can be forecast at dates into the future. Often cash flow forecasts are carried out
monthly showing cash balance (positive or negative) at each month -end for the following
12 months. Forecast balances provide input to revenue, expenditure and borrowing
policies. For instance a large expected cash surplus implies the need to invest cash, while
a large expected deficit implies the need to borrow. The cash flow profile will also
indicate for how long surplus funds are likely to be available to invest and for how long
cash deficits will persist and therefore the period over which borrowing will be needed.
The ease of monitoring and managing bank balances depends on their number, the
efficiency of the banks involved in supplying information and how quickly the sums
involved can be transferred to alternative (temporary) uses. Obviously a treasury single
account will be easy to monitor and manage. But a system in which spending agencies
keep their own bank accounts (maybe more than one for each agency as in Mongolia)
does not permit easy monitoring or management.
4.2 Bank accounts
In some cases, government's cash resources are held in many bank accounts (hundreds or
even thousands in the case of the republics formerly part of the Soviet Union at the time
of and its break). In such cases, cash management is more complex and less efficient.
Borrowing may occur even though sufficient cash resources may exist for borrowing to
be unnecessary. The problem is two -fold. Multiple bank accounts make it very difficult
to monitor aggregate cash resources. And releasing the idle money from all of these
accounts is also extremely cumbersome. In addition where spending agencies have their
3
own bank accounts, MOF control is weaker because these agencies have greater control
over their own spending. MOF receives financial statements from them but is not party
to detailed transactions.
A treasury single account (TSA) avoids these difficulties. A TSA receives all
government revenues, and out of it come all government expenditures. Or at least that is
the case in principle. In practice, exceptions are necessary (for instance public
enterprises are likely to retain their revenues, hold bank accounts and make their own
payments from them). The case in favour of a TSA is clear enough. Establishing one is
not always straight -forward:
• spending agencies may be unwilling to give up their bank accounts
• paying revenues into a single bank account is often physically impossible at
locations outside the capital city
• the central bank may be happy to administer the TSA but may not wish to be
involved in "retail' banking. Anyway it is unlikely to have a sufficiently
extended branch network to operate the TSA without help
• the participation of the commercial banks is essential. They have branch
networks and are active in retail banking. But their services have to be paid
for (either via interest/fees or via a concession which allows them to hold
money in transit longer than is strictly necessary). Of course such costs have
to be set against the interest gains expected from establishing a TSA
• a mechanism is needed between the central bank and the commercial banks so
that they open credits in response to specific government needs, and pay
surplus cash balances into the TSA at regular intervals
4.3 The need for treasury systems
The word treasury has several meanings. In this context it refers to related functions of
the Ministry of Finance in the fields of budget execution, accounting, management of
debt and cash, financial control and banking (See paper two for a more detailed
discussion). Essentially, a treasury system addresses these issues in an integrated
manner. It is therefore a type of government financial management information system.
Treasury systems address problems of missing information, weak and fragmented
information systems, inadequate and inappropriate controls and the adverse impact on
decision -making arising from such deficiencies. When in 1993 the IMF advised
Government of Moldova on setting up a government treasury system, it listed the
following "severe problems" facing budget management:
Poor short-term control over expenditures as reflected in large fiscal deficits
and significant expenditure arrears
2
• Lack of current information about the magnitude of expenditures
• Highly inefficient cash management, reflected in the large amounts of
involuntary lending to government.... at the same time significant cash
balances lie idle
• As -yet undeveloped capacity to borrow from sources other than the banking
system...
• A system of budget classification that undermines efforts to improve
forecasting, analysis and management
Other countries experience different problems such as:
• Budget execution systems lacking appropriate information, controls and links
with accounting
• Accounting systems which are incomplete and untimely; cannot be reconciled
with each other; cannot communicate with each other; require manual transfer
of data; generate financial statements only with difficulty; do not respond
easily to users' needs for information; lack reliable information
• Existence of multiple bank accounts, aggravating problems of control and
rendering efficient cash management very difficult or impossible
• Break -down of system of budgetary control
• Lack of timely information on public finances for decision -making and
accountability purposes
• Line ministries entering into large commitments without MOF having prior
knowledge; line ministries frustrated by abrupt changes in funding (lack of
stability in budget allocations)
Treasury systems are designed to address such issues.
4.4 Functional processes of a treasury system
Hashim and Allan write about information systems for fiscal management (1998). They
identify the following eight processes: macro -economic forecasting; budget preparation;
budget execution, accounting and fiscal reporting; cash management; debt management;
revenue administration; personnel administration; and auditing. In practice, treasury
modernization projects tend to concentrate on only three of these: budget execution,
accounting and fiscal reporting and cash management. However they also have to
address the last phase of budget preparation (finalization of the budget and in -year
changes to it) and auditing (the needs of auditors are covered in system design). Other
fiscal management processes are commonly covered by separate, stand-alone systems.
In summary, treasury modernization projects usually cover:
• The enacted budget including supplementary and revised budgets, budget
allocations, budget transfers and warrants to incur expenditure
• Accounting and reporting including the general ledger of government
• Banking and cash management (via a single treasury account)
• And by implication, the audit trails needed for auditing
Treasury systems differ from country to country. For instance, the project to improve
Ukraine's treasury system focuses on the following: legal regulatory and operational
framework (guidelines, procedures, regulations, forms and operating manuals); budget
classification and coding; developing better methods of forecasting expenditures and'
managing cash; improving fiscal reporting; developing detailed functional specifications
of the treasury ledger system; and training and institutional development. The detailed
functional specifications for the Ukraine general ledger provide the capability to:
• Record initial and revised budgets
• Distribute budget appropriation and authority to incur expenditure to spending
units
• Record expenditure in the form of cash and commitments against budget and
authority to incur expenditure
• Allocate funds to spending units
• Permit checks on the availability of appropriation, funds allocation and
commitments prior to approving payment
• Print consolidated payment instructions to banks
• Record revenue and other receipts against appropriate account heads
• Print checks (or instruct electronic payment) against payment instructions
• Consolidate data, facilitate reporting, provide for easy data retrieval for MOF,
ministries, spending units etc.
73
4.5 Introducing a treasury system
Assessment and planning
• Analysis of status quo and justification for introducing a treasury system
• Identification of public finance components to be covered, government
entities to be covered and their interface with the treasury system
• Adequacy of institutional processes: budget process and act; classification and
coding system; banking arrangements; accounting records; basis of
accounting; financial statements; the treasury itself
• Analysis of user needs; matching with national capacity; choice of approach
(the old system computerized or a new system with bells and whistles?)
• Analysis of relevant skills to create the system; to manage its implementation;
to provide technical back-up; to operate the system (users) and to use its
outputs
Specification
® To embark on the modernization process, the system design has to be specified,
permitting bidding documents to be prepared and contractors to submit bids. The
specification has several components:
Functional design Each public finance component and each element making
up each component will be specified (for instance data to be entered, its
format, the classifications and codes to be used, the sub -divisions of the
general ledger into which data are to be sorted, the format and destination of
planned reports, the built-in controls, the content of screen data displays etc.).
Also included will be the functions of each organizational entity involved, the
data flows between them and specifications for how their actions are to be
communicated and reflected in records (e.g. approvals, rejections etc.).
Software This involves the choice of IT platform and of software
applications (whether off -the -shelf, customized or created anew); the
protocols for information exchange, requirements for suppliers to provide
technical back-up, etc.
Banking The banking services to be offered (by Central Bank/second tier
banks); establishment of Treasury Single Account and sub -accounts;
authoriization and format of instructions to bank; means of accepting
instructions and processing transactions; bank statements; arrangements for
the clearing of balances to TSA; other banking services.
7
• Hardware configurations.
• Staffing requirements.
• Proiect supervision arrangements
Implementation
• Resolving institutional inadequacies (laws, procedures, coding schemes,
institutional deficiencies etc.)
• Training staff
• Creating or customizing software
• Testing the adequacy of programs and systems
• Piloting the system at selected locations
• Validation
• Extending the system
• Validation
• Abandoning the old system
4.6 Challenges
• How to develop/ acquire/retain the necessary expert resources?
• How to deal with staff redundancy caused by the move to computerized
systems?
• How to negate possible illicit pressures in procurement?
• How many processes should be integrated? In principle, the more integrated
processes, the larger advantages from computerization. But the more modules
there are to integrate, the more difficult it is to achieve a working system.
• What to do about processes either not computerized or not part of the treasury
system (problem of interfaces)?
• Treasury projects are usually slow in implementation, the causes being the
subject of debate. The multi -stage nature of implementaion; the need for
ril
E
testing, piloting, fine-tuning, training and extensive adoption; and
procurement complications are all possible candidates. How to deliver
something timely and of good value?
The control implications of treasury systems are also the subject of debate.
Treasury systems increase the information available to the ministry of finance,
and therefore its possibilities of control and power. Depending on country
circumstances and system design this may result in an over -intrusive ministry
of finance and resentful spending agencies. How to give line ministries a
genuine stake in the new system?
Sources
Asian Development Bank, "Cash management and the treasury function", Chapter 8 of
Managing Government Expenditure, 1999.
IMF (1993), "Red books" on the introduction of treasury systems such as Moldova:
setting a government treasury system Washington.
Organization for Economic Cooperation and Development (2001) Managing Public
Expenditures: A Reference Book for Transition Countries. Richard Allen and D.
Tommasi, editors. (Chapter 9)
World Bank (1998), Information systems for government fiscal management, Ali Hashim
and Bill Allan, PREM, Washington.
World Bank (date?), Information systems strategies for public financial mana eg ment,
Hywel M. Davies, Ali Hashim and Eduardo Talero, Discussion Paper 193, Washington.
US Government (1998), Core financial management system requirements. Joint
Financial Management Improvement Program, Washington.
0
Annex
Assessing a treasury system
(based on notes by Ali Hashim)
Policy framework and institutional setting
1. Status of the budget law with specific emphasis on:
• receipt and custody of public funds; consolidated fund
• public expenditure controls and significance of control by appropriation
• role and responsibilities of the central bank and second tier banks
• role of MOF and its departments (in particular those responsible for treasury
functions)
• asset and liability management (including public debt)
• accounting records, reports and statements and their audit
• financial regulations
2. Budget classification system and chart of accounts:
• How complete?
• Compliant with IMF?
• Sufficient for control purposes?
3. Payment processing:
• Does a treasury single account (TSA) exist and where is it located?
• Which entity/entities control/s the TSA/bank accounts and how?
• Are payment requests of spending units routed through the treasury or are they
sent directly to the bank/s
4. Steps in the budget execution cycle. Which agencies carry out the following?
• Recording of appropriations
• Distribution of appropriations/sub-appropriations
E
lift]
• Budget revisions and transfers
• Funds allocations
• Spending limits (cash; commitment; authority to incur expenditure or
"warrant")
• Cash allocations
• Commitment controls
• Payment controls
• Receipt of tax and non -tax revenue
• Loan accounting
5. Institutional arrangements for cash management
• Which agency is responsible?
• On what basis are revenue and expenditure forecasts made?
• How frequently are agencies required to produce estimates of cash
requirements?
• How does government determine periodic cash requirements?
• What are the links between cash and debt management?
Functional design
6. How is the treasury system designed: how do the processes listed in point four above,
operate?
7. What is the coverage of the system?
• Number of ministries
• Number of spending units
• Size distribution of payments (number/value)
• Number of transactions of various types
M
11
• Application to central/local government
• Coverage and treatment of extra -budgetary funds
8. Are there subsidiary accounts of the TSA? How frequently are these accounts cleared
to the TSA? Can idle balances build up in these accounts?
9. What information is recorded for receipts? Are taxes deposited directly in the TSA or
are they first paid to second tier banks? How large is the "float" of undeposited receipts?
10. How long does it take for a payment instruction to be processed and acted upon?
How many stages are there in this process and are they all strictly necessary?
11. How quickly are accounting reports made for budgetary and accountability
purposes? What is the required standard for timeliness? What is the normal delay and to
what is it attributable?
12. Is payroll automated and how does it interface with the treasury system? Which
agency carries out payroll processing? How are personnel -related transactions sourced,
recorded and authorized?
13. What other parts of government's financial management systems are automated (e.g.
debt management, tax administration, customs administration, personnel management,
pensions) and how do these interface with the treasury system?
Information technology
14. Technical architecture:
• Hardware/software platform
• Number and nature of sites
• Nature of communications between the nodes of the network; volume and
nature of transactions at each node; means of transferring information to and
from the treasury; and to and from the Central and other banks
• Application software: custom -developed; off -the -shelf; or customized?
• Degree of automation of spending units' processes
• Nature of information security and other controls
• Internet/intranet capabilities
10
12
Management training and institutional capacity
15. Which government agency manages information systems?
• How does this agency relate to the treasury, ministries, spending units etc?
• Who is responsible for the functional design of the treasury system?
• Are changes to the functional design easy to accomplish?
• How are information systems supervised?
16. What are the training arrangements (technical, end -user, end -user support, technical
maintenance, change management, foreign/local, start-up/ongoing)?
17. How many staff have been trained and in what subjects (financial staff, technical
staff)? Are there problems of staff loss to the private sector?
18. Technical staffing issues: number of technical staff in place to build/maintain the
system; types of technical staff available; salaries/compensation of technical staff.
J
11
13
Inside This Issue
Feature Articles and Resources
• Getting Star ted_with Cash Flow Forecasting
• Steps to Cash Flow Forecasting
• Enhancing Cash_ Forecasting
• Seven Ways -to Enhance -Cash Forecasting
• Useful Resources on_Cash _Flow Forecasting
Economy and Interest Rates
• Panel of Economists: Economic Outlook
• Interest Rate Outlook
• Snapshot of Economy and Interest Rates
Investment Performance Benchmarks
• Performance_ Benchmarks
0
10-Bill Index
o
Money Market Fund Index
o
LGIPlndex
o
Key Rates: Cash Markets
o
Relative Value Yield Chart
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Volu= 25,
Tip for Printing
1. Go to "File," "Page setup.
2. Change all margins to .05 or less.
Getting Started with Cash Flow Forecasting
By Keith Sawdon
Many of us responsible for investing the public's funds have many tools in place
to help us. We have a written investment policy that has been adopted by our
oversight board, a sound system of internal controls (for investment activity) that
has been reviewed by our external auditors, solid methods for competitively
bidding our securities purchases, and we have developed a good set of reports
that help convey our investment activity.
II In Brief: Cash Flow Forecasting II
Cash flow forecasting is an estimate of receipts and disbursements during a given
period. When used as a cash management guide, this tool can lead to the optimization
of funds as well as insuring sufficient liquidity is present to meet liabilities. Cash
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recasting is distinct from governmental accounting and budgeting in that the forecast
done with intent to measure the organization's ability to meet needs in light of
sources with the ultimate goal of negating the need for any short-term borrowing and
avoid the liquidation of any long-term securities (investments). When done on an
ganizational level, spending patterns can be coordinated to mitigate any potential
ortfalls and level off flow of funds.
One tool that may be overlooked is a cash flow forecast. To effectively manage
the public's funds, it is important to know your future cash flow position.
What is Cash Flow Forecasting? Cash flow forecasting is the process of
predicting cash flow (at least on a monthly basis) for the purpose of managing
liquidity needs and for investment control. An accurate forecast provides the
investment official with the essential information needed for making sound
investment decisions.
A good cash flow forecast should answer the following questions:
. How much cash is available?
. When will it become available?
. How long will it be available?
Building a good cash flow forecasting model takes time and effort. Are the
benefits greater than the costs? To answer that question it is important to
understand the benefits of cash flow forecasting. Those benefits include:
improved investment earnings, ensured liquidity, and identification of any cash
flow shortfalls.
Improved investment earnings and ensured liquidity go hand in hand. If you do
not know when funds will be needed for disbursements, your tendency will be to
only hold investments with exceptionally short maturities. This ensures that you
will be able to meet your payment obligations — but to get that liquidity,
investment yield is normally given up (in an upward sloping yield curve
environment). If you can predict when funds will actually be needed, you will still
be able to ensure liquidity, and at the same time, improve investment
performance by taking advantage of longer maturities in an upward sloping yield
curve environment.
Another benefit of cash flow forecasting is that it can help identify any periods
where you may actually have a negative cash position requiring some form of
short-term financing.
The type of forecast you undertake will, in part, depend on the time and
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resources you have available to commit to the program and the benefits to be
received. For the most part, building cash flow models that provide you with
monthly estimates (of your cash position) will be the norm. But some
governments may need weekly estimates, and very large investment portfolios
may need daily estimates. The forecast timeframe chosen should be based on
the time and resources available.
How to Build a Cash Flow Forecast. First, start with your current cash and
investment balances. Then, look back at your actual cash collection and
expenditure history by month. Apply the actual receipts collected or expenditures
made against your amended budget for that year. The result is a percentage that
represents actual cash collections or expenditures made against the budget for
that month. Once you have looked back in history for three years, apply the
three-year monthly average of those monthly percentages against the current
year's budget.
History will be a good predictor of normal, recurring operating revenues and
expenditures, but it doesn't address all the issues you will need to forecast.
Issues such as new revenue sources or capital spending programs (nonrecurring
expenditures) have no history to look back to, so you will need to work with
departmental personnel to determine when funds will be coming in and when
funds will be going out.
Whenever you are working with historical data, remember that changes in the
economy, state law, user fees, etc., can cause the past data to give a false
reading on future cash positions. That is why it is important to validate your
forecasting model. Compare your projected cash position with the actual cash
position. This comparison of actual to predicted helps you ensure that historic
cash activity can be a good predictor of the future and that the assumptions that
you used are correct. If you have large variances between actual and predicted
you need to ask, What caused the variance? Do I need to change my
assumptions? Has something changed?" Finding out why will help you improve
your cash flow forecast for the future.
Just Do It. Like exercising, getting started is the hardest part of cash flow
forecasting. Like most of us, the hardest part of exercising is not using the
equipment, it is getting to the room to use the equipment. Once you get to your
exercise room, using the exercise equipment is not that bad. Cash flow
forecasting is the same. Once you have decided that you need or want a
forecasting model, getting going is the hardest part. But once you begin to gather
your historical data and build the model, the process tends to flow pretty
smoothly. It is the getting going that is the hardest. Once the forecast model is
laid out, keeping it updated requires only a few hours a month. All in all, the
benefits are worth the effort.
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KEITH SAWDON is the chief deputy treasurer for Oakland County Michigan and author of the Association of
Public Treasurers publication Cash Flow Forecasting.
TOP
Steps to Cash Flow Forecasting
By Lee Buffington
When most of us analyze our personal budgets, we know our fixed expenses like
rent, mortgage, insurance, and utilities. We also can plan for elective
expenditures like a new car or a nice vacation. In addition, most of us know the
amount of our paycheck and when we will receive it. In other words, we are in
control.
In the public sector, however, we do not always know what to expect. The
legislative body may decide to spend our money on an unanticipated project. Or
perhaps the state legislature will work their magic on what was once our
expected revenue. Budgets are frequently built based on expected yearly
expenditures, while cash inflows and outflows vary by month. Expenditures and
receipts may balance at the end of the year, but chances are they will not
balance month -by -month, which results in negative balances.
Why Should You Forecast? A good cash flow forecast enables good cash flow
management and reduces the need for borrowing. Forecasting also helps
maximize investment earnings by showing when funds will be available for
investment. As a finance officer, forecasting gives you the confidence to certify
that you have sufficient funds to cover the next six months of expenditures.
How to Do a Cash Flow Forecast.
Decide on the time period your forecast should cover. For us, a 16-month
forecast provides a better view into the future than the typical 12-month
forecast. We use a 16-month forecast because California counties only have
a positive cash flow three or four times a year, so it takes 16 months to
include up to two income cycles in the forecast.
2. Review your accounting history for revenue and expenditures — get the
general picture.
3. Create a simple, one -page forecasting form to begin tracking your revenue,
expenditures and investments.
a. Use tracking categories that are simple and meaningful to you.
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- -"a_ - __ - .
b. Include the following: net cash flow balance, negative cash flow,
and maturing securities that could be called.
c. Use your morning bank report and daily forecast to determine
how much money you need to place each day to be fully invested.
4. Start with what you know and gradually build up the reliability of your
forecast. Remember: keep it simple.
5. Monitor and fine tune your forecast. Beware of fluctuations in near term
numbers. Watch the revenue side for significant changes. Review heavy
user expenditure patterns. Monitor the incidental user. Make adjustments to
your forecast to accommodate changes.
Lee Buffington is the tax collector -treasurer of San Mateo County, California
TOP
Enhancing Cash Forecasting
By Kathy King -Griswold, CTP, CBM
A recent survey conducted by the Association of Financial Professionals of
Canada revealed that the most important issue among financial professionals is
improving the cash forecasting process. Due to the inverted yield curve, the
economic slowdown, and the lack of general liquidity in the market, cash flow
forecasting has become more important during recent years. An accurate
estimate of future revenues and expenditures allows the treasury officials to gain
greater visibility into business performance. It also helps to keep decision making
on track and maximize investment opportunities. A good cash forecast gives an
organization sufficient time to devise remedies for anticipated temporary cash
shortfalls and arrange short-term investments for temporary cash flow surpluses.
Cash forecasting is important, but organizations often find it difficult to accurately
identify a correct estimate. Some factors that contribute to poor quality forecasts
include:
1. Manual processes
2. Seventy-five percent of treasury's time spent on data collection, which
results in time lost for analyzing positions and effective management
3. Inconsistent assumptions
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4. Junior -level forecast responsibility
5. Lack of incentives and accountability in business units.
Cash flow plans are living entities and must constantly be modified as new
information becomes available on future cash inflows and outflows. Each budget
should be analyzed and the cash flow effect should be determined. After
reviewing the budget, look for significant discrepancies between the planned and
actual figures and make timely adjustments to the model. Some previous
experience is necessary t o make proper adjustments. The last step in the
process is to review and approve the cash flow forecast. Review by upper
management will help to insure the accuracy and reliability of the forecast.
11 Seven Ways to Enhance Cash Forecasting 11
1. Improve availability of data and quality of information —The availability and
quality of cash management data is a particularly important hurdle to enhance
cash flow forecasting. The following can be used to improve the availability and
quality of data:
o Treasury workstations
o Account structure — using a single master account to collect all cash
inflows and disperse vs. multi accounts.
o Treasury Intranet site — can improve the quality of input and allow for
easier sharing of information stored in spreadsheet files. This may also
assist in finding a "home" for unclaimed and un-posted receipts and
disbursements, which improves the quality of bank account
reconciliations.
o Use specific knowledge from business units — business units generate
their cash flow forecasts when creating their annual plans because
treasury would not be able to forecast certain expenditures or receipts for
business units because they are not aware of all activities at that level.
o Manage the expectations of management— Treasury should take extra
precautions in presenting forecasts to management and identify
assumptions very clearly.
2. Provide treasury with greater payment visibility by migrating vendors to e-
payments.
3. Calculate the opportunity cost of inaccuracy — it makes a clear difference how
the comparison between forecast and actual is fed back to the sources. This
helps to provide a practical understanding of the importance of accurate
forecasting.
4. Statistical analysis — comparing forecasts to the actual cash flow that was
processed by banks can reveal correlations and consistent behavior. This
comparison can reveal opportunities for improving the predictability of a
forecast.
5. Use Treasury more as a planning resource or internal consultant and less as a
payment processor.
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6. Continually monitor and adjust performance to the cash forecast.
7. Use technology that integrates bank data into forecasting solution.
In conclusion, the reliability of cash flow forecasting has become more important
in recent years due to internal and external pressures. An improved cash flow
forecast can produce many benefits including: more cash available for internal
lending and external investment opportunities, less adjustment transactions, and
earlier warning signals. However, because cash flow forecasting involves many
individuals across an organization, improvement projects require a strong
commitment and a skilled, dedicated, and multi -disciplinary project team.
Kathy King -Griswold, is the assistant treasurer for the University of Rochester in Rochester, New York.
Top
Useful Resources on Cash Flow Forecasting
• GFOA Recommended Practice: Use of Cash Flow Forecasting in Operations
• Use of Cash Flow _Forecasting .in operations, Nova. Scotia Municipal Finance
Cor orp oration
• Daily forecast (San Mateo -County, California)
• Monthly forecast (San Mateo County, California)
• Cash forecast
Top
Cash Management -Related Sessions at the GFOA Annual
Conference
The upcoming GFOA conference in Anaheim, California on June 10-13, 2007 will
include the following sessions related to cash management and banking
relations. More information on the GFOA conference is available on GFOA's Web
site.
Paper or Plastic? Using Purchasing Cards to Reduce Costs and Maintain
Control. Purchasing cards have the potential to simplify purchasing, reduce
paperwork, expedite delivery of services, and cut costs while maintaining
effective internal controls in the treasury function. But, as with all tools, it is
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GFOA Treasury Management
important to know how purchasing cards should be used and how to prevent
potential abuse. Learn how leading governments use purchasing cards to
improve their procurement processes in this informative session. The session will
feature a panel of representatives from the card industry, banking, and
government.
Fraud Prevention Techniques for Treasurers. Payment fraud does not go
away, it just goes digital. Learn effective techniques to protect your government
against payment fraud in an increasingly complex banking environment. In this
session, fraud prevention experts share the latest practices and technologies for
avoiding fraud in check payments as well as in the accounts payable and
accounts receivable functions.
Preparing for the Worst of Times: Treasury Management in Emergencies.
Earthquakes... hurricanes... terrorist attacks. The list of threats seems go grow,
and they all affect a local government's treasury management activities. While
you can't control when a disaster occurs, you can control your government's level
of preparedness. By knowing your vulnerability and what actions to take in
advance, you can reduce the impact on your treasury activities. This session will
introduce disaster response tools for the treasury function. Speakers will illustrate
how these have been applied successfully in recent disasters including Hurricane
Katrina.
Technologies for the Treasury Function. New technologies that help
governments move from paper to electronic payment hold great efficiency
potential for government agencies. Speakers will introduce promising
technologies that can help treasurers improve productivity while maintaining
financial controls. Topics will include: electronic check processing, electronic bill
presentment and payment, and the "mobility trend" —the use of mobile devices
such as cell phones and PDAs to manage treasury functions.
Getting the Most From Your Banking Relationships. New banking
technologies have enabled many governments to reduce operating costs in the
finance department by including new services in their banking agreements.
Banks can provide customized reporting, easy access, and improved multi -factor
security. Speakers at this session will discuss the new services available, key
components of a banking relationship review, and
Maximizing the Benefits of Remote Check Deposit. "Remote Capture" is a hot
topic in the banking industry. What is it and how can your government benefit
from this technology? What key factors can make or break remote capture? This
session will feature local government treasury managers who will discuss their
experience with remote capture, the challenges they encountered, and the
lessons they learned.
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W AI5 Document Ketrieval
53644. If an agreement is not made:
(a) Active deposits and interest thuLaQ
upon the deman easurer or other
subj c o any penalties which may be pres
regulation.
(b) Inactive deposits are subject to
days before withdrawal.
53645. Interest
follows:
(a) For act'
shall be c ute
shall
authorized icial,
cribed federal law or
of at least thirty
computed and paid by the depository, as
deposits upon which interest
on the average daily balance
be paid
is payable, interest
for the Galen ar
1
For i eposits, interest shall be computed on a 360-day
and shall be paid quarterly.
53646. (a) (1) In the case of county government, the treasurer may
annually render to the board of supervisors and any oversight
committee a statement of investment policy, which the board shall
review and approve at a public meeting. Any change in the policy
shall also be reviewed and approved by the board at a public meeting.
(2) In the case of any other local agency, the treasurer or chief
fiscal officer of the local agency may annually render to the
legislative body of that local agency and any oversight committee of
that local agency a statement of investment policy, which the
legislative body of the local agency shall consider at a public
meeting. Any change in the policy shall also be considered by the
legislative body of the local agency at a public meeting.
(b) (1) The treasurer or chief fiscal officer may render a
quarterly report to the chief executive officer, the internal
auditor, and the legislative body of the local agency. The quarterly
report shall be so submitted within 30 days following the end of the
quarter covered by the report. Except as provided in subdivisions
(e) and (f), this report shall include the type of investment,
issuer, date of maturity par and dollar amount invested on all
securities, investments and moneys held by the local agency, and
shall additionally include a description of any of the local agency's
funds, investments, or programs, that are under the management of
contracted parties, including lending programs. With respect to all
securities held by the local agency, and under management of any
outside party that is not also a local agency or the State of
California Local Agency Investment Fund, the report shall also
include a current market value as of the date of the report, and
shall include the source of this same valuation.
(2) The quarterly report shall state compliance of the portfolio
to the statement of investment policy, or manner in which the
portfolio is not in compliance.
(3) The quarterly report shall include a statement denoting the
ability of the local agency to meet its pool's expenditure
requirements for the next six months, or provide an explanation as to
why sufficient money shall, or may, not be available.
(4) In the quarterly report, a subsidiary ledger of investments
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wrua Lvcwucut ncuicvdi
may be used in accordance with accepted accounting practices.
(c) Pursuant to subdivision (b), the treasurer or chief fiscal
officer shall report whatever additional information or data may be
required by the legislative body of the local agency.
(d) The legislative body of a local agency may elect to require
the report specified in subdivision (b) to be made on a monthly basis
instead of quarterly.
(e) For local agency investments that have been placed in the
Local Agency Investment Fund, created by Section 16429.1, in National
Credit Union Share Insurance Fund -insured accounts in a credit
union, in accounts insured or guaranteed pursuant to Section 14858 of
the Financial Code, or in Federal Deposit Insurance
Corporation -insured accounts in a bank or savings and loan
association, in a county investment pool, or any combination of
these, the treasurer or chief fiscal officer may supply to the
governing body, chief executive officer, and the auditor of the local
agency the most recent statement or statements received by the local
agency from these institutions in lieu of the information required
by paragraph (1) of subdivision (b) regarding investments in these
institutions.
(f) The treasurer or chief fiscal officer shall not be required to
render a quarterly report, as required by subdivision (b), to a
legislative body or any oversight committee of a school district or
county office of education for securities, investments, or moneys
held by the school district or county office of education in
individual accounts that are less than twenty-five thousand dollars
($25,000).
(g) Except as provided in subdivisions (h) and (i), each city,
county, or city and county shall submit copies of its second and
fourth quarter reports to the California Debt and Investment Advisory
Commission within 60 days after the close of the second and fourth
quarters of each calendar year. Any city, county, or city and county
not required to submit a report pursuant to subdivision (h) or (i)
shall file with the commission a written statement within 60 days of
the end of the second and fourth quarters of the calendar year
stating the distribution and amount of its investment portfolio and
that it is therefore not subject to this reporting requirement. This
subdivision shall become inoperative on January 1, 2007.
(h) A city shall not be required to submit a quarterly report to
the commission if, during the entire reporting period, the city has
maintained 100 percent of its investment portfolio in (1) the
treasury of the county in which it is located for investment by the
county treasurer pursuant to Section 53684, (2) the Local Agency
Investment Fund created by Section 16429.1, (3) National Credit Union
Share Insurance Fund -insured accounts in a credit union, in accounts
insured or guaranteed pursuant to Section 14858 of the Financial
Code, or in Federal Deposit Insurance Corporation -insured accounts in
a bank or savings and loan association, or (4) in any combination of
these.
(i) A county or city and county shall not be required to submit a
quarterly report to the commission if, during the entire reporting
period, the county has maintained 100 percent of its investment
portfolio in (1) the Local Agency Investment Fund created by Section
16429.1, (2) National Credit Onion Share Insurance Fund -insured
accounts in a credit union, in accounts insured or guaranteed
pursuant to Section 14858 of the Financial Code, or in Federal
Deposit Insurance Corporation -insured accounts in a bank or savings
and loan association, or (3) in any combination of these.
(j) The city, county, or city and county investor of any public
funds, no later than 60 days after the close of the second quarter of
25
http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdoclD=37913612549+1+0+0& WAISacti... 9/2/2008
WA1J LJOCUMML 1Wt 1CVG1
each calendar year and 60 days after the subsequent amendments
thereto, shall provide the statement of investment policy required
pursuant to this section, to the California Debt and Investment
Advisory Commission.
(k) In recognition of the state and local interests served by the
actions made optional in subdivisions (a) and (b), the Legislature
encourages the local agency officials to continue taking the actions
formerly mandated by this section. However, nothing in this
subdivision may be construed to impose any liability on a local
agency that does not continue to take the formerly mandated action.
53647. (a) Interest on all money deposited belongs to, and shall be
in o the general fund of, the loca age
rep sented by the officer making the deposit, unless otherwise
directe law.
(b) Notw standing the provisions of subdivision (a), and except
as otherwise dir ed by law, if the governing body of the local
agency represented b he officer making the deposit so directs, such
interest shall be paid t he fund which contains the principal on
which the interest accrued.
53647.5. Notwithstanding any other provision law, interest
earned on any bail money deposited in a bank acco pursuant to
Section 1463.1 of the Penal Code and Section 53679 of 's code
shall, if the board of supervisors so directs, be allocate r the
53648. s article, the treasurer may as�
moneys in, and enter into contracts with, a state or nationa bank,
savings association or federal association, federal or sta credit
union, or federally insured industrial loan company, pur ant to a
Federal law or a rule of a federal department or agen adopted
pursuant to the law if the law or rule conflicts w' this article in
regulating the payment of interest on deposits public moneys by
any of the following:
(a) Banks which are Federal Reserve S em members or whose
deposits are insured by the Federal D osit Insurance Corporation.
(b) Savings associations or fe al associations which are federal
home loan bank members or whos eposits are insured by the Federal
Savings and Loan Insurance rporation.
(c) State or federal edit unions whose accounts are insured by
the National Credit U 'on Share Insurance Fund or guaranteed by the
California Credit ion Share Guaranty Corporation or insured or
guaranteed purs nt to Section 14858 of the Financial Code, unless a
member of th egislative body of a local agency, or any person with
investmen ecisionmaking authority of the administrative office,
manager' office, budget office, auditor -controller's office, or
trea rer's office of the local agency, also serves on the board of
di ctors, or any committee appointed by the board of directors, or
t c rrarli t rn fii"��t9HP'L°'tl`S'.�eT'� eeewxr=�^� f the state or _
aral credit union.
(d) A federally insured industrial loan company.
26
http://www.leginfo.ca.gov/cgi-bin/waisgate? WAISdocID=37913612549+1+0+0& WAISacti... 9/2/2008
T:hY'°f XPQuinfw
MEMORANDUM
TO:
La Quinta City Council
FROM
John M. Falconer, Finance Director/Treasurer
SUBJECT:
Treasurer's Report for June 30, 2008
DATE:
July 31, 2008
Attached is the Treasurers Report for the month ending June 30. 2008. 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
ATTACHMENT 2
Investment
Beginning
Purchased
Notes
Sold/Matured
Other
Ending
Change
Cash (3)
$ (612,892)
(1)
$ (921,482)
$ (1,534,374)
$ (921,482)
LAIF
50.778,392
3,750,000
(6,000,000)
0
48,528,392
(2,250,000)
US Treasuries (2)
57.855,865
29,000,000
(44,000,000)
(170,210)
42,685.655
(15,170,210)
US GOO Sponsored Enterprises (2)
59,818,389
16,500.000
(16,500,000)
(105,758)
59,712,631
(105,758)
Commercial Paper (2)
29.949,962
23,000,000
(25,000,000)
(49,778)
27,900,184
(2,049.778)
Corporate Notes
7,966,638
4.720
7.971.358
4,720
Mutual Funds
2,704,547
9,399,89260
1
12,104,439
9,399,892
Total
$ 208,4,901
$ 61,649,892
$ 92,421,482
$ 321,026
$ 197,368,285
$ 11,092,616
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 Quints, I hereby certify that sufficient investment liquidity and anticipated
revenues am 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.
hn M. Falconer Date
Finance Direclon'Treasurer
Footnote
(1) The amount reported represents the net increase (decrease) of deposits and withdrawals from
the previous month.
(2) The amount reported in the other column represents the amortization of premium/discount for the
month on US Treasury, Commercial Paper and Agency investments
(3) The cash account may reflect a negative balance This negative balance will be offset with transfers from other investments
before warrants are presented for payment by the payee at the bank
27
Treasurer's Commentary
For the Month of June
Cash Balances - The portfolio size decreased by $11.00 million to $197.4 million. The major
reason for the decrease was the payment of pass through tax increment payments in June
million.
Investment Activity - The average maturity of the portfolio increased by 17 days to 80 days
at the end of June. The six month US Treasury benchmark increased by 22 basis points and
ended the month at 2.14%. The Treasurer follows a buy and hold investment policy and has
not sold investments before maturity to take advantage of market conditions. June was a
very busy month in terms of the number of trades most notably the reinvestment of bond
proceeds in three and six months Treasury bills. Treasury Bills decreased and the Mutual
Funds increased to pay for Housing Program costs. The sweep account earned $1,504 in
interest income for the month of June and the bank fees for the month were $ 1,939 which
resulted in a net decrease of $ 435 in real costs.
Portfolio Performance - The overall portfolio performance decreased by twenty nine (29)
basis points from the prior month and ended at 2.88% for the month, with the pooled cash
investments yielding 3.09%. The overall portfolio yield (including bond proceeds) was
seventy four (74) basis points over the benchmark, which has decreased by fifty one (51)
basis point from the one hundred twenty five (125) basis point difference in May. With the
average maturity of 80 days, the portfolio yield should remain at these levels for the next
three months with a small downward trend based upon reinvestments at lower rates. 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 5.10% and the benchmark was at 4.81 % 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.
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. Redlevebpmem A9ere.Y and Fmn" ANlgrM
Jura 30, 2008
BaWnw of AduM FUM, 19],J66,2M
Lea Pedy cash F. (1250)
Less No isodltl Fitness I769009
Rynvc 0S us FUM, 5195,59],9E6
C GsM1 S MvesNleMs
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Name-AvaiMdl
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16,BA$ E 168d5
S 153d,3]{ E IB,615
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13,958,888
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2,905,]N
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d,982,926
14
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1,981,2d9
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19.8N,082
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3fi32256d
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S 12,303,H81
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S 3321,516
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b 58]I%
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Total CM hrvez0�xnb 14,WI,is1 151,0I1.251 J]31,519 151.]19,Ill 90.0995% ]9.1162X
TON, CM Gsh& Im9z6n. I56,5]6,0]]1 150.OBA096 I].]31,513 15d,]66,5]S 1,551,219 ],211,516 l,]]0,299 19.J131% ]912M%
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9,895.127
9,80127
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+9Anni
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YES
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YES
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YES
IetAmencen
[12l..139
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YES
IAAmencan_2601
ROA U S Bank- CIP
YES
19Amencen
2W2 RDA US Bank -DM Bvc1VAme2W2
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YES
IS+Antencan2.U9,913
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+sl Mcsn
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151Arrerran
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12,10.1J9
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61329%
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d0,0J1,b0 b,831,b8 dp,eJ1.W3 � M.NI9% 20.0I52%
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H I I AVr11VICIV 1 A
LQ IAB 2008-09 Work Plan Item -
Review Content and Presentation of Monthly Treasurer's Report
The IAB is charged with the duty of reviewing the Monthly Treasurer's Report
"MTR" to note that:
1. Deposits in financial institutions and investments are authorized and do not
exceed limitations established by the IP, and
2. Cash deposits and investments provide adequate cash flow to satisfy
anticipated obligations.
The MTR addresses item 1 in "Authorized Investments and Diversification" and
item 2 in "Cash Flow Analysis".
The IAB in concert with the Treasurer will study these and other schedules in the
MTR to determine if the information is sufficient or excessive with emphasis on the
two critical reporting areas. An objective is to simplify and streamline the reports
where possible and make them more understandable by non -accountants.
41
ragc r Ur i
John Falconer
From:
Donbarm@aol.com
Sent:
Saturday, July 19, 2008 10:32 AM
To:
John Falconer, ted@theodoreross.com
Subject:
IAB Work Plan- MTR
Attachments: IAB Work Plan - MTR 2008-9.doc
John and Ted:
I prepared a brief description of what I suggest be covered in the review of the MTR. It is included as an
attachment to this email.
It may be helpful to furnish that information to the CC at or before our joint meeting to review and approve the
IAB's 2008-09 work plan.
My preliminary thoughts on the review of the MTR include the following:
1. Assign an identifying number or letter to each schedule and include a table of contents.
2. Consider rearranging the "Authorized Investments and Diversification" schedule in the format of the
schedule in section X of the IP for 2008-09.
3. Recognizing that I am a cash flow addict, I believe that the determination of the projected cash flow to
meet reasonably anticipated obligations
is the most important monthly task of the Treasurer and review area of the IAB. I suggest that the IAB
and the Treasurer study the current process,
attempt to improve it, disclose the principal assumptions used and revise the current "Cash Flow
Analysis".
4. The major tasks in the preparation of the MTR should be subjected to a cost -benefit evaluation to assure
that the Treasurer's resources are being allocated
in a manner commensurate with the importance of the task.
Don
Get fantasy football with free live scoring. Sign up for FanHouse Fantasy Football today.
42
8/7/2008
INVESTMENT ADVISORY BOARD
Meeting Date: December 10, 2008
ITEM TITLE:
City of La Quinta Fiscal Year 2007/08
Audited Financial Statement
BACKGROUND:
Correspondence & Written
Material Item A
Mr. Bryan Gruber, 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
CITY OF LA QUINTA, CALIFORNIA,_ - k
-COMPREHENSIVE ANNUAL FINANCIAL REPORT;
YEAR ENDED JUNE 30, 2008 y
IS
n
S®I!
un
Certified Public Accountants
jj
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2008
Prepared By
FINANCE DEPARTMENT
JOHN M.FALCONER
Director of Finance
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2008
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letterof Transmittal...................................................................................................................
i
List of Principal Officials...........................................................................................................
viii
OrganizationalChart ............... _. __................................... _.._...............................................
_....... ix
Certificate of Achievement for Excellence in Financial Reporting(GFOA)...... ........................
.......... x
FINANCIAL SECTION
Independent Auditors' Report .............................................................................................................1
Management's Discussion and Analysis............................................................................................3
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof Net Assets ................. ........ ................ ............ . _..............................................
..17
Statementof Activities..............................................................................................................18
Fund Financial Statements:
Balance Sheet — Governmental Funds...................................................................................20
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets...................................................................................................23
Statement of Revenues, Expenditures and Changes in Fund
Balances — Governmental Funds .. _............. _.. _....... _............... ...........................................
....... 24
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities .....................27
Budgetary Comparison Statement by Department — General Fund............................................28
Budgetary Comparison Statement — Low/Moderate Income Housing PA No. 2............................30
Statement of Net Assets — Proprietary Funds... ..... ... ... ... ...........................................
.... 31
Statement of Revenues, Expenses and Changes in Fund Net Assets —
ProprietaryFunds ........ ....... ..................... ......... ........ ............................._...................
..... —32
Statement of Cash Flows — Proprietary Funds.........................................................................33
Statement of Fiduciary Net Assets - Fiduciary Funds.................................................................35
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2008
TABLE OF CONTENTS (Continued)
Page
Number
Notes to Financial Statements................................................................................................37
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Non -Major Governmental Funds..................................................72
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Non -Major Governmental Funds... - - .. ........ .....................
.. ... __80
Budgetary Comparison Schedules — Special Revenue Funds
StateGas Tax ....................................... ................................................ ....................
........ ...88
Library...........................................................................................................
..................89
FederalAssistance................................................................................................................90
SLEBG..................................................................................................................................91
IndianGaming .................. .............. ........ ............. ._.......... ............--..............................._....
92
Lightingand Landscape .......... ......... ............ .......... ............ _.._...........................................93
RCTC......................__............._..........................._................................_........
_.._...._....94
Quimby.........................._............................,..........................................................
_.............95
PublicSafety.. ........................................_...............................................................
_....... _.....96
ArtsIn Public Places... ..........................................................................................................97
SouthCoast Air Quality .........................................................................................................98
AB939....................._..--._.................._.........................................................
.. ........._......99
Low/Moderate Income Housing PA No. 1...........................................................................100
CVViolent Crime Task Force.............................................................................................101
JusticeAssistance Grant .................... ........ .... .........._............................._......_........._._....102
Proposition1B Fund.........................................................................................._
............103
Budgetary Comparison Schedules — Capital Projects Funds
CapitalImprovement........................................................................................................104
Redevelopment Agency PA No. 1 — Capital Projects...........................................................105
2004 Low/Mod Bond.............................................................................................................106
Infrastructure..................................................................................................................
Transportation............................................................ _.....................................
...107
_... _............108
Parksand Recreation..........................................................................................................109
CivicCenter ......................................... ......... ..... ...-.................................... ...
........ ........... 110
CommunityCenter.............................................................................................................111
StreetFacility........................................................................................................................112
ParkFacility ....................................... ................................ ......... ...... .... ...........
.................. 113
FireFacility ........................................................................................................._._.........._.114
Redevelopment Agency PA No. 2 — Capital Projects........................................................115
Budgetary Comparison Schedules — Debt Service Funds
Redevelopment Agency PA No. 1 — Debt Service...............................................................116
Redevelopment Agency PA No. 2 — Debt Service..............................................................117
Financing Authority — Debt Service.....................................................................................118
Combining Statement of Net Assets — Internal Service Funds...............................................120
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2008
TABLE OF CONTENTS (Continued)
Page
Number
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets — Internal Service Funds.......................................................................121
Combining Statement of Cash Flows — Internal Service Funds.............................................122
Combining Balance Sheet —All Agency Funds.................................................................124
Combining Statement of Changes in Assets and Liabilities —All Agency Funds. ...... .—.125
STATISTICAL SECTION
NetAssets by Component.......................................................................................................128
Changesin Net Assets...............................................................................................................129
Changes in Net Assets — Governmental Activities.....................................................................130
Changes in Net Assets — Business -type Activities.................................................................131
Fund Balances of Governmental Funds................................................................
...............132
Changes in Fund Balances of Governmental Funds.............................................................133
Assessed Value and Estimated Actual Value of Taxable Property... .... .. .............................
..... 134
Assessed Value and Estimated Actual Value of Taxable Property - 135
RedevelopmentAgency ............................_..... ..... ......... ....................... .... ......
.............. .135
Direct and Overlapping Property Tax Rates. . ........................... .. .. ..........
... ....... ..... 136
PrincipalProperty Taxpayers .............................................. —............. ............... ........................
137
Property Tax Levies and Collections............................................................................................138
Ratios of Outstanding Debt by Type..............................................................................
.........139
Ratio of General Bonded Debt Outstanding.......................................................... ..................140
Direct and Overlapping Debt ............................ ........... ............... .......—................ ..........
..... ..141
Legal Debt Margin Information.................................................................................................142
Pledged -Revenue Coverage.......................................................................................................143
Demographic and Economic Statistics.......................................................................................144
PrincipalEmployers....................................................................................................................145
Full-time City Employees..........................................................................................................146
OperatingIndicators..................................................................................................................147
CapitalAsset Statistics. —..........................................._................................_....._.....................148
Schedule of Insurance in Force.... ... ............................ .... - .... ..........................................
__ .... . 149
THIS PAGE INTENTIONALLY LEFT BLANK
(:ejtyj, 0 " 4 a"
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLS TAMPICO (760) 7 7 7 - 7 0 0 0
LA QUINT.A, CALIFORNIA 92253 FAX (760) 777-7101
November 18, 2008
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 30, 2008. In addition, City Ordinance 2.12.040 requires an annual audit be
performed by a certified public accountant.
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of
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
opinion on the City of La Quinta financial statements for the year ended June 30,
2008. 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.
+mom
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.
Local economy
According to the State of California Economic Development Department (EDD), as
of July 2008, the total workforce for the City of La Quinta was 15,300 of which
14,600 were employed for a 4.3% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 8.4% and the statewide
unemployment rate of 7.0%.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.69 billion in FY 98/99 to $12.52 billion
(over 465%). 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: Applebee's Restaurant, BevMo, Cost Plus World Market,
Homewood Suites, and Mimi's Cafe. These compliment the Costco, Embassy
Suites Hotel, Home Depot, Lowes, Sam's Club, Wal-Mart, and Target that have
previously located in the City. In addition, the City is anticipating the opening of
two Fresh and Easy Grocery Stores, an In and Out Burger, and a LA Fitness Center.
The City of La Quinta is also home to many fine restaurants, which include the
Hogs Breath Inn, Arnold Palmer Restaurant, LG's and The Falls Prime Steak houses,
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
Lowe's.
During the past ten years, the City of La Quinta general fund expenditures have
increased 334%. Two Departments that have exceeded the average include
Community Services (397%), and Public Safety (384%). In the case of
Community Services, much of the increase can be attributed to adding library
services and park maintenance functions to the Department. In the case of Public
Safety, much of the increase is reflected in increased police service personnel
During the same ten-year period, the City of La Quinta general fund revenues
increased 259%. Sources that exceeded the average include intergovernmental
(623%), interest earnings (334%), and taxes (281 %). In the case of
intergovernmental revenues, most of the increase is attributable to the way the fire
service contract is accounted for and an increase in motor vehicle fees. 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.
And finally, the increase in taxes is due greatly to the increase in sales tax
revenues from the commercial development along Highway 11 1 .
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 42,958, 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) 07/08, the General Fund balance increased by $7.8 million
consisting of revenue increases in the following categories: taxes, license and
permit fees, and interest earnings. In addition, expenditures were less than
budgeted in the general administration, public safety, including police and fire,
community services, planning and development, and public works.
The General Fund Balances as of June 30, 2008 was $92.5 million of which $45.5
million versus $28.4 million in FY 2006/2007 was reserved and $47.0 million
versus $56.2 million in FY 2006/2007 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.
iv
Economic Development Plan
This plan outlines a vision and direction for the City's economic development
activities. It presents the mission statement, implementation policies, projected
resources, and business plan the City and the La Quinta Redevelopment Agency
will follow to sustain a comprehensive economic development effort. It is goal -
oriented in that the economic development efforts specified in the plan are a key to
generating the financial resources necessary to support both the Resource
Allocation Plan and the Capital fmprovement Plan.
Capital Improvement Plan
This plan is primarily a planning document that establishes five-year funding
priorities for capital improvements. This plan also includes a listing of all the other
desired capital improvements that cannot, or need not, be funded within the five-
year horizon and totaled $68.6 million.
Five -Year Resource Allocation Plan
This plan is primarily a planning document that provides a five-year horizon for
forecasted operational needs of each department, as well as the City as a whole.
This plan is a cyclical review of all operations expenditures to reassess funding
mechanisms behind personnel responsibilities and the various service levels of all
programs.
Annual Budget
This document is the annual implementation tool for the overall planning process.
The budget will encompass each element of the strategic planning effort and will
implement: the goals of the Economic Development Plan; the resource and demand
allocation outlined in the Five -Year Resource Allocation Plan; and the capital
improvement investment for a given year.
Relevant Financial Policies
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
FY 04/05 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. While no State mandated contributions were required in FY 06/07 and FY
07/08, the State budget crisis of FY 08/09 will result in an additional diversion of
$4.9 million from the La Quinta Redevelopment Agency for a total take away of
$12.7 million.
v
Major Initiatives
A 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 project was recently
awarded a Platinum award from the Leadership in Energy and Environmental Design
(LEED) Green -Building Rating System`". Funding for the project came from a bond
issue of$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 (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 which include a partnership with the Coachella
Valley Housing Coalition to break ground on a 218-unit affordable rental housing
project on fifteen acres at the northwest corner of Dune Palms Road and Avenue
48 in the City of La Quinta. The Agency's financial commitment toward this
project is $30.1 million.
The City has two major public facility expansions that have been completed in
2008 - the City Hail expansion and the City Museum. Both of these facilities will
better serve the growing needs of the community.
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 with the second course in the planning stages. The Agency continues to seek
quality development opportunities for future hotel(s) on the property.
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,
2007. This was the eleventh 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.
vi
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.
Respectfully submitted,
Thomas P. Genovese John M. Falconer
City Manager Finance Director
vii
City of La Quinta
Directory of Officials
June 30, 2008
CITY COUNCIL
Don Adolph, Mayor
Lee Osborne, Mayor Pro Tern
Terry Henderson, Council Member
Stanley Sniff, 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 LaQuinta
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2007
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 amoral financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
ai mow. �
President
Executive Director
EM
Lance
SO�1 &
Lunghard
UP
Certified Public 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
A PrMunoml Carpara6on
Donald G. Slater
Richard K. Kikuchi
Retired
Robert C. Lance
19t0.1994
Richard C. Son
Fred J. Lunghard, Jr.
192&1999
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of La Quinta,
California, as of and for the year ended June 30, 2008, 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, 2008, and the
respective changes in financial position and cash flows, where applicable, and the respective budgetary
comparisons for the General Fund and the Low/Moderate 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 November
7, 2008, on our consideration of the City of La Quinta's internal control over financial reporting 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 control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
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
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 2004
0j Sxwmw
203 N. Brea Blvd., Suite 203 9 Brea, CA 928214056 • (714) 672-0022 • Fax (714) 672-0331 a www.lslcpas.com
Lmwwd
S060douip
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
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.
i
November 7, 2008
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, 2008. 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 $548,371,000 (net assets) Of this amount,
$76,533,000 (unrestricted net assets) may be used to meet the government's
ongoing obligations to citizens and creditors.
• The governmental activities total net assets increased by $52,265,000 and the
Business -Type total net assets decreased by $638,000 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 $187,825,000, a decrease of
$14,179,000 in comparison with the prior year. Approximately 70 percent of this
total amount, $130,815,000, 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 $16,734,000 or 42 percent of total general fund budgeted
expenditures.
• The City of La Quinta's total debt decreased by $5,813,000 during the current
fiscal year from $247,478,000 to $241,665,000 through normally scheduled debt
service payments.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of
La Quinta's basic financial statements. The City of La Quinta's basic financial
statements comprise three components: 1) government -wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial
statements themselves.
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 intergovern-
mental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees
and charges (business -type activities). The governmental activities of the City
of La Quinta include general government, public safety, community services,
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.
4
Governmental funds
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial state-
ments. However, unlike the government -wide financial statements,
governmental fund financial statements focus on near -term inflows and
outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in
evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the govern-
ment -wide financial statements, it is useful to compare the information
presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's
near -term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of La Quinta maintains thirty five (35) individual governmental funds,
which are distinguished between major and non -major funds. Information is
presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund
balances for the general fund, one (1) special revenue fund, two (2) debt
service funds and three (3) capital project funds. These seven (7) funds are
considered to be major funds. Data from the other twenty eight (28)
governmental funds are combined into a 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 budgetary comparison statement has been provided for the general
fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found in the table of
contents under the heading Basic Financial Statements.
5
Proprietary funds
Proprietary funds can be broken down into enterprise and internal service
funds. The City of La Quinta maintains one (1) proprietary fund. Enterprise
funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City of La Quinta
uses an enterprise fund to account for its SilverRock Golf Course operations,
which is considered to be a major fund. Internal service funds are an accounting
device used to accumulate and allocate costs internally among the City of La
Quinta's various functions. The City of La Quinta has three (3) internal service
funds to account for its major equipment replacement including vehicles, for its
information technology systems, and for its park equipment and facility needs.
Because these three services predominantly benefit governmental rather than
business -type functions, they have been included within governmental activities
in the government -wide financial statements. The internal service funds are
combined into a single, aggregated presentation in the proprietary fund
financial statements. Individual fund data for the internal service funds is provided
in the form of combining statements elsewhere in this report
The basic proprietary fund financial statements can be found on the pages listed in
the table of contents for Proprietary Funds: Statement of Net Assets, Statement of
Revenues, Expenditures and Changes in Net Assets, and Statement of Cash Flows.
Fiduciary funds
Fiduciary funds, also called agency funds, are used to account for resources held
for the benefit of parties outside the government. Fiduciary funds are not reflected
in the government -wide financial statement because the resources of those funds
are not available to support the City of La Quinta's own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on the pages listed in
the table of contents for Fiduciary Funds: Statement of Fiduciary Assets and
Liabilities - Agency Funds.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of
the data provided in the government -wide and fund financial statements: The notes
to the financial statements can be found on the pages listed in the table of
contents for Notes to the Basic Financial Statements.
Other information
In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City of
La Quinta's General Fund and its budget appropriations. Required supplementary
information can be found in the table of contents under the section Required
Supplemental Information and includes Notes to the Required Supplementary
Information and a General Fund Budgetary Comparison Schedule.
la
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.
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 $548,371,000 at the close of the most recent fiscal year, which is
$51,627,000 greater than the previous year.
The largest portion of the City of La Quinta's net assets, which was 70% this year
and 69% last 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
Governmental activities
Business -type activities
Total
2008
2007
2008
2007
2008
2007
Current and other assets
s 233,280,016
$ 244,280,997 5
42,917,7901 $
(2,019,993)
$ 230,362,226 S
242,261,004
Capital assets
536,929,916
477,813,364
43,459,062
43,517,873
580,388,978
521.331,237
Total assets
170,209,932
722,094,361
40,541,272
41,497,880
810.751.204
763.592,241
Current liawities 21,364.433 19,882,003 191,734 365,469 21,556,167 20,247,472
Noncurrent liabilities 240,142,880 245,774.853 681,047 826,848 240,823,927 246.600,701
Total liabilities 261,507,313 265,656,856 872,781 1.191,317 262,380,094 266,848,173
Net assets:
Invested in capital assets,
net of related debt
343.019,328
300,220,033
42,778,015
42,692,025
385,797,343
342,912.058
Restricted
86,041,189
49,277,895
-
-
86,041,189
49,277,895
Unrestricted
79,642,102
106,939.577
43,109,5241
42,385,4621
76,532,578
104,554,115
Total net assets S
508.702,619
$ 456,437.505 S
39,668.491
$ 40,306,563
$ 548,371,110 $
496,744,068
7
An additional portion of the City of La Quinta's net assets (16 percent versus 10
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 - $76,533,000 (14 percent) may be used to meet the government's
ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of La Quinta is able to report positive
balances in all three categories of net assets, both for the government as a whole,
as well as for its separate governmental activities; however, the business type
unrestricted net assets had a deficit of $3,110,000.
Governmental activities
Governmental activities increased net assets by $52,265,000 accounting for an 11
percent change in the net assets from the previous year. Key elements of these
changes are as follows:
City of L a Quinta Changes in Net Assets
co.ernm.,,1v wr:,rMssly�.
acbvNM aarvniez T.01
2008 200] O.,9v 2008 200'/ Gwnm >rn8 I.,
f1.053,3491 3,814.233 3.540.748 273.485 6.261.793 9.061.657 4129.0641
mnummronz w_ %. 5.664 3.796,495 2.109,169 5WS.664 3296A95 2109169
C.m. yamsaM
.d r... t 1...,
• Revenues increased by $31,947,000 with the largest category increases in capital
grants and contributions $32,489,000). Capital grants and contributions increased
as a result of the acquisition of Highway 111 from Caltrans in January 2008 for
$37,617,000.
0
Business -type activities
'This was the third full year of operations for the SilverRock Golf fund since the
golf course began early operation in 2005.
Net assets decreased by $ (638,000) from the net effects of a capital
contribution from the governmental activities of $353,000 and an operating
loss of $(991,000).
Charges for services primarily consisted of green fees and totaled $3,814,000
which was $273,000 greater than the previous year with golf course expenses
of $4,809,000, which was $289,000 greater 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 $187,825,000, a decrease of
$14,179,000 in comparison with the prior year, Of this ($130,815,000) or 70%
constitutes unreserved, which is available for spending at the government's
discretion. The remainder of fund balance ($57,01 O,OOO) 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 ($5,084,000), 2) to advance funds to other
funds ($49,667,000), or 3) for a variety of other restricted purposes ($2,259,000)•
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
$47,010,000, while total fund balance reached $92,452,000. 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 231 percent
of the total budgeted expenditures.
10
• Expenditures increased by $31,446,000 with the two largest category increases in
Planning and Development ($27,587,000) and Community Services ($1,498,000).
The increase in the Planning and Development costs is a result of completion of the
Vista Dunes Courtyard homes and the construction of the Wolff Waters
Apartments. The increase in the Community Services costs is a result of the
expansion of the library and museum.
• A contribution of $353,000 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
❑Expanses
O Progrem revenues
60,000,000
50.000,000
48,568,420
40,000,000
35,323,858
30,000.000
20,000.000
15,522,441
13,472,036 11,097,528
4,942,194
1 Q000,000
6,953,073 5,797,116
[L3130,638 3,814,063
1-1 8,328
General Public safety Community services Planning and Publicwurks Interest etpense
government development
Expenses and Program Revenues- Busine"pe Activltie5
❑ Expenses
5,000.000 ❑ Rogram revenues
4,809.302
4,800,000
4,600,000
4,400,000
4.200.000 4,166,920
4,000,000
3.800.000
Golf
I
The City of La Quinta's general fund balance increased by $7,81 1,000 during the
current fiscal year. Key factors in this growth are as follows:
• Actual expenditures were $6,217,000 less than the final budget. Divisions that
were under budget for the year were Street Maintenance ($1,097,000), Police
($814,000), Fire ($580,000), Planning & Development Administration ($920,000),
and the Current Planning Division ($446,000).
• An increase of $483,000 in licenses and permits over the final budget, which
represents increased development and building activity in the Public Works and
Building and Safety department.
• An increase of $387,000 in interest income over the budget, which is a result of
higher than budgeted interest rates and larger amounts under investment.
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 previous Fiscal Year 2006-2007, this fund purchased twenty acres (20)
for $19,966,000 which represented the major expenditures in this Fund. In the
current Fiscal Year 2007-2008, this fund received $9.4 million reimbursement for a
portion of this land which will not be used for low/moderate income housing. This
land will be used for commercial purposes along Highway 111.
Capital Improvement Fund
The fund is primarily used to record the expenditure of funds for capital projects.
Major capital projects funded during Fiscal Year 2007-2008 were Vista Dunes
Courtyard Homes, Wolff Waters Apartments, City Hall and Museum expansion, and
the Ave 52 median improvements.
Redevelopment Agency Project Area 1 Capital Projects Fund
The fund is primarily used to account for the construction of projects in this area
within the Redevelopment Agency Project Area 1 which is generally south of Ave
50. The major funding for these projects was a $25 million transfer from the Debt
Service Fund for capital projects including the permanent SilverRock Clubhouse and
SilverRock infrastructure improvements.
11
Civic Center Fund
The fund is primarily used to collect developer impact fees for the construction of
the City Hall expansion and to record the costs of those improvements. The City
Hall expansion was completed in Fiscal Year 2007-2008.
Redevelopment Agency Project Area 1 & 2 Debt Service Funds
The Redevelopment Agency Project Area 1 & 2 Debt Service Funds are used to
accumulate resources, primarily property taxes, to pay debt service.
The fund balance decreased by $16.3 during the current fiscal year in the
Redevelopment Agency Project Area 1. The key factor in this decrease was a $25.0
million transfer to the Redevelopment Agency Project Area 1 Capital Project Fund
which was offset by an increase in tax increment property tax generated in the
project area, and not having to pay to the State of California an Educational Relief
Augmentation Fund (ERAF) payment.
The fund balance decreased by $7.4 during the current fiscal year in the
Redevelopment Agency Project Area 2. The key factor in this decrease was a $9.4
million transfer to the Low/Moderate Income Housing PA No. 2 Fund, which was
offset by an increase in tax increment property tax generated in the project area, and
not having to pay to the State of California an Educational Relief Augmentation Fund
(ERAF) payment.
Proprietary funds
The City of La Quinta's proprietary funds provide the same type of information found
in the government -wide financial statements, but in more detail.
The financial activities of the City enterprise fund have already been addressed in the
discussion of the City of La Quinta's business -type activities. In addition, the City
has three (3) internal service funds to accumulate resources for equipment and
vehicle replacement, information technology activities, and for park equipment and
facility replacement.
General Fund Budgetary Highlights
During the year there was a $1,489,000 increase in appropriations and transfers out
between the original ($38,448,000) and final amended budget ($39,937,000).
Following are the main components of the increase:
EPA
• $243,000 supplemental appropriation to the General Government City Manager
Division for a donation to the Wildlife Conservation Fund for the purchase of land in
section 5; and,
• $250,000 supplemental appropriation tot eh Community services Administration
Division toward construction of the Food In Need of Distribution (FIND) Indio
building Fund; and,
• $584,000 and $170,000 carry over appropriations to the General Government
Planning Administration and Current Planning Divisions, respectively, for
professional studies.
In addition, the FY 2007-2008 budget included carryover encumbrances of
$161,500 and $2,674,000 in carryover appropriations into FY 2008-2009
The budget increases were possible because of additional anticipated revenues and
the carryover encumbrances and appropriations were possible from available net
changes in fund balances.
Capital Asset and Debt Administration
Capital assets
The City of La Quinta's investment in capital assets for its governmental and
business -type activities as of June 30, 2008, amounts to $580,389,000 (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.
City of La Quinta Capital Assets (net of depreciation)
Governmental
Business -type
activities
activities
Total
2008
2007
2008 2007
2008
2007
Land
0, 45, 74 $
75,077,785
36,840,832 $ 36,45 ,147 $
117,486,769 S
111,5 5,932
Buildings an
improvements
44,355,498
28,033,383
5,832,933 6,021,704
50,188,431
34,055,087
Equipment and furnittue
913,530
755,425
773,115 1,017,719
1,686,645
1,773,144
progress
13
Major capital asset events during the current fiscal year included the following:
Governmental activities
• Recording infrastructure improvements totaling $37,617,000 for Highway 111
for street improvements, street right of way, street sidewalks, traffic signals, curbs
and gutters, and street medians based upon the transfer of ownership from the
State of California to the City of La Quinta in January 2008;
• Recording the land, park buildings and equipment in the park equipment and
facility internal service fund which totaled $136,400;
• Purchasing a new Compressed Natural Gas (CNG) street sweeper for $234,000
in the Equipment Replacement Fund;
• Recording infrastructure improvements, including developer dedications of
$2,822,000, to street improvements, street right of way, street sidewalks and
curbs and gutters, and street median;
• Completed construction of the City Hall which totaled $13,913,000;
• Completed construction of the Museum expansion totaled $3,332,000;
• Completed the Phase 2 Library expansion which totaled $525,000;
• Recording the transfer of assets, which were improvements made to land from
the Redevelopment Agency to the SilverRock Golf Enterprise Fund had a cost basis
of $353,000.
Business -type activities
• Recording improvements to the golf course for the first golf course at SilverRock
Resort totaled $353,000.
Additional information on the City of La Quinta's capital assets can be found in
Footnote 6 to the financial statements.
14
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $240,984,000. $142,265,000 of this debt amount represents bonds
secured solely by specified revenue sources (i.e., tax allocation bonds); while,
$91,715,000 of the debt represents revenue bonds that will be paid from pledged
tax increment property tax housing funds. In addition, $681,000 in capital
equipment leases is outstanding in connection with SilverRock Golf Course.
City of La Quinta Outstanding Debt
GovemmeNal Business -type
The City of La Quinta's total outstanding debt decreased by $5,813,000 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
2009 fiscal year:
• The City of La Quinta had a 4.3 percent unemployment rate. This rate is
significantly lower than the Riverside County unemployment rate of 8.4 percent
and the statewide unemployment rate of 7.0 percent.
• During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.69 billion in FY 98199 to $12.52 billion or
over 465 percent.
• During the current fiscal year, the general fund net income was $7,812,000.
$2,836,000 of this amount has been designated to the general fund for carry over
appropriations and encumbrances.
15
• The State of California budget includes a $350 million State-wide diversion of tax
increment funding from of which the La Quinta Redevelopment Agency total will be
$4.9 million.
The City of La Quinta adopted a balanced general fund budget for FY 08/09.
Requests for Information
This financial report is designed to provide a general overview of the City of La
Quinta's finances for all those with an interest in the government's finances.
Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the City of La Quinta, John
Falconer, Finance Director, P.O. Box 1504, La Quinta, CA, 92247 or by telephone
at 760-777-7150.
16
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
JUNE 30, 2008
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 more than 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
$ 155,758,886 $ 169,001 $ 155,927,887
71,960
12,090
84,050
3,288,662
-
3,288,662
13,126,460
-
13,126,460
720,498
488
720,986
3,415,275
(3,415,275)
-
15,954
1,865
17,819
-
64,041
64,041
4,825
250,000
254,825
11,478,359
-
11,478,359
4,567,730
4,567,730
40,831,407
-
40,831,407
403,021,507
36,840,832
439,862,339
133,908,409
6,618,230
140,526,639
770,209,932
40,641,272
810,751,204
7,605,489
151,711
7,757,200
377,567
1,757
379,324
4,151,161
-
4,151,161
4,400,383
37,000
4,437,383
1,330,038
-
1,330,038
2,351,210
-
2,351,210
1,148,585
1,266
1,149,851
7,128,020
395,831
7,523,851
233,014,860
285,216
233,300,076
261,607,313
872,781
262,380,094
343,019,328
6,868
29,267,560
1,016,336
50,655,135
5,095,290
79,642.102
$ 508,702,619
42,778,015
(3,109,524)
$ 39,668,491
385,797,343
6,868
29,267,560
1,016,336
50,655,135
5,095,290
76,532,578
$ 548,371,110
See Notes to Financial Statements 17
CITY OF to QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2008
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Expenses
Services
and Grants
and Grants
Functions/Programs
Primary Government:
Governmental Activities
General government
$ 6,953,073
$ 8,328
$ - $
Public safety
13,472,036
2,050,492
1,059,039
21,107
Planning and development
35,323,858
134,211
168,483
3,511,369
Community services
5,797,116
374,092
3,661,071
907,031
Public works
11,097,526
1,900,437
1,017,071
45,650,912
Interest on long-term debt
15,522,441
-
-
-
Total Governmental Activities
Business -Type Activities:
Golf Course
88,166,050 4,467,560 5,905,664 50,090,419
4,809,302 3,814,233
352,687
Total Business -Type Activities 4,809,302 3,814,233 - 352,687
Total Primary Government $ 92,975,352 $ 8,281,793 $ 5,905,664 $ 50,443,106
General Revenues:
Taxes:
Property taxes, levied for general purpose
Tax increment
Sales taxes
Transient occupancy taxes
Franchise taxes
Business licenses taxes
Othertaxes
Use of money and property
Motor vehicle in lieu, unrestricted
Gain on sale of capital assets
Other
Total General Revenues and Transfers
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
See Notes to Financial Statements 18
Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ (6,944,745) $
- $ (6,944,745)
(10,341,398)
- (10,341,398)
(31,509,795)
- (31,509,795)
(854,922)
- (854,922)
37,470,894
- 37,470,894
(15.522,441)
- (15,522,441)
(27,702,407) (27,702,407)
(642,382) (642,382)
(642,382) (642,382)
(27,702,407)
(642,382)
(28,344,789)
6,014,305
-
6,014,305
42,114,893
-
42,114,893
8,492,213
-
8,492,213
5,327,203
-
5,327,203
1,748,082
-
1,748,082
317,011
-
317.011
641,705
-
641,705
10,230,489
4,310
10,234,799
3,803,647
-
3,803,647
57,346
57,346
1,220,627
-
1,220,627
79,967,521
4,310
79,971,831
52,265,114
(638,072)
51,627,042
456,437,505
40,306,563
496,744,068
$ 508,702,619
$ 39,668,491
$ 548,371,110
See Notes to Financial Statements 19
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2008
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 govemments
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 deposits
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
Special
Revenue Fund
Capital Projects Funds
Low/Moderate
Redevelopment
Income Housing
Capital
Agency
General
PA No. 2
Improvement
PA No. 1
$ 51,656,663
$ 10,677.080
$ 5,839,548
$ 22,894,794
7,930
-
2,274
-
3,288,662
-
-
-
9,443,802
-
-
325,300
57,177
-
97,051
10,601
971
-
1,170
4,825
-
-
_
7,888,347
122.953
645,158
19,414
5,684,047
-
-
45,264,966
-
3,462,579
-
16,703,089
$ 108,466,708 $ 25,986,030 $ 6,486,980 $ 43,158,683
$ 3,989,294 $ 27,053 $
375,236 -
3,863,315 -
268 1,501
7,786,576 9,443,802
3,451,787 $ 34,495
299,826
2,351.210 -
384,157
16,014,689 9,472,356 6,486,980 34,495
161,504 - _
10,601 971 1,170
4,825 - -
45,264,966 3,462,579
47,010,123 -
- 16,512,703 _
- 39,660,439
92,452,019 16,513,674 43,124,188
$ 108,466,708 $ 25,986,030 $ 6,486,980 $ 43,158,683
See Notes to Financial Statements 20
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2008 (Continued)
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 deposits
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
Capital
Projects Funds
Debt Service Funds
Redevelopment
Redevelopment
Other
Civic
Agency
Agency
Governmental
Center
PA No. 1
PA No. 2
Funds
$
$ 16,551,746
$ 14,801,552
$ 28,809.909
-
-
61,756
-
-
3,682,658
51,531
64,622
106,328
-
-
3,212
1,365,786
491,811
964,304
-
-
312,000
939,634
-
-
24,128,318
$
$ 17,969,063
$ 15,357,985
$ 59,008,119
77,593
237,242
884,566 434,266 9,437
1,924,986
764,428
- - 6,015,461
9,393,000 12,000,000 19,378,966 5,479,938
9,393,000 12,884,566 19,813,232 14,509,085
5,084,497
(9,393,000)
3,212
2,076,063
939,634
15,906,365
25,563,622
(4,455,247) 10,138
(9,393,000) 5,084,497 (4,455,247) 44,499,034
Total Liabilities and Fund Balances $ $ 17,969,063 $ 15,357,985 $ 59,008,119
See Notes to Financial Statements 21
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30. 2008
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 deposits
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
Total
Governmental
Funds
$ 151,231,292
71,960
3,288,662
13,126,460
702,009
15,954
4,825
11,478,359
6,015,461
49,667,179
40,831,407
$ 276,433,568
$ 7,580,222
375,236
4,400,383
1,330,038
2,351,210
19,155,364
1,148,585
6,015,461
46,251,904
88,608,403
161,504
15,954
4,825
2,076,063
49,667,179
5,084,497
47,010,123
32,419,068
55,831,061
(4,445,109)
187,825,165
$ 276,433,568
See Notes to Financial Statements 22
CITY OF LA QUINTA
GOVERNMENTALFUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30.2008
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity:
Long-term debt and compensated absences that have not been included
in the governmental fund activity:
$ 187,825,165
Infrastructure and right-of-way 434,497,635
Other capital assets 157,515.002
Accumulated depreciation (71,649,786)
Bonds payable (233,980,000)
Unamortized bond premium/discount 841,087
Unamortized cost of issuance 4,567,730
Other long-term liabilities (6,170,812)
Compensated absences (829,227)
Accrued interest payable for the current portion of interest due on long-term debt
has not been reported in the governmental funds. (4,151,161)
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. 19,155,364
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. 21,081,622
Net assets of governmental activities $ 508,702,619
See Notes to Financial Statements 23
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2008
Special
Revenue Fund
Capital Projects Funds
Low/Moderate
Redevelopment
Income Housing
Capital
Agency
General
PA No. 2
Improvement
PA No. 1
Revenues:
Taxes
$ 22,665,855
$ 5,771,938
$ -
$ -
Assessments
-
-
-
-
Licenses and permits
2,107,035
-
-
-
Intergovernmental
9,142,554
-
1,311,904
-
Contribution from property owners
154,417
-
-
-
Chargesforservices
1,213,519
-
-
-
Use of money and property
5,239.552
853,823
-
1,411,698
Fines and forfeitures
359,114
-
-
-
Contributions
37,616,690
-
-
-
Miscellaneous
154,940
115,417
-
-
Developer participation
-
-
3,618,748
201,379
Loan repayments
-
-
-
-
Total Revenues
78,653,676
6,741,178
4,930,652
1,613,077
Expenditures:
Current
General government
6,566,585
-
-
Public safety
17,142,443
-
-
-
Planning and development
1,20%935
5,302,598
-
986,428
Community services
2,914,422
-
-
-
Public works
5,075,195
-
-
-
Capital outlay
37,616,690
-
45,266,627
-
Debt service:
Principal retirement
-
-
193,753
-
Interest and fiscal charges
-
-
54,701
-
Pass -through agreement payments
-
-
-
-
Total Expenditures
70,525,270
5,302,598
45,615,081
986,428
Excess (Deficiency) of Revenues
Over (Under) Expenditures
8,128,406
1,438,580
(40,584,429)
626,649
Other Financing Sources (Uses):
Transfers in
313,134
9,378,966
40,624,429
25,180,355
Transfers out
(812,135)
(4,380,828)
(40,000)
(3,623,184)
Capital leases
182,094
-
-
-
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
(316,907)
4,998,138 40,584,429
21,557,171
Net Change in Fund Balances
7,811,499
6,436,718 -
22,183,820
Fund Balances, Beginning of Year
84,640,520
10,076,956
20,940,368
Fund Balances, End of Year
$ 92,452,019
$ 16,513,674 $ -
$ 43,124,188
See Notes to Financial Statements 24
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008 (Continued)
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Fines and forfeitures
Contributions
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
Capital leases
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Capital
Projects Funds Debt Service Funds
Redevelopment Redevelopment
Civic Agency Agency
Center PA No. 1 PA No. 2
$ - $ 43,476,312 $ 23,087,750
698,250
357,890
477,355
Other
Governmental
Funds
$ 10,869,078
909,229
4,927,677
951,545
120,541
2,616,475
26,500
2,359,974
471,811
357,890 44,174,562 23,565,105 23,252,830
202,764 386,073 202,081 9,641
- - - 39,332
- - 7,875,199
- - - 2,422,335
2,892 - - 1,485,407
- 3,565,558 260,000 1,930,000
273,248 8,528,282 1,686,050 4,882,427
- 23,585,426 19,403,597 -
478,904 36,065,339 21,551,728 18,644,341
(121,014) 8,109,223 2,013,377 4,608,489
4,557,990 1,955,846 6,593,962
(6,240,662) (28,970,960) (11,334,812) (31,940,027)
158,061
(6,240,662) (24,412,970) (9,378,966) (25,188,004)
(6,361,676) (16,303,747) (7,365,589) (20,579,515)
(3,031,324) 21,388,244 2,910,342 65,078,549
$ (9,393,000) $ 5,084,497 $ (4,455,247) $ 44,499,034
See Notes to Financial Statements 25
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2008
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Fines and forfeitures
Contributions
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
Capital leases
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Total
Governmental
Funds
$ 105,870,933
909,229
2,107,035
15, 382,135
1,105,962
1,334,060
11,297,153
359,114
37,643,190
270.357
6,537,991
471,811
183,288,970
7,367,144
17,181,775
15,374,160
5,336,757
6,563,494
82,883,317
5,949,311
15,424,708
42,989,023
199,069,689
(15,780,719)
88,604,682
(87,342,608)
182,094
158,061
1,602,229
(14,178,490)
202,003,655
$ 187,825,165
See Notes to Financial Statements 26
CITY OF LA QUINTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2008
Net change in fund balances - total governmental funds
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
Depreciation expense
Repayment of principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
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.
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.
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.
Change in net assets of governmental activities
$ (14,178,490)
62,309,970
(3,270.169)
5,545,395
87,946
(99,341)
2,243,154
(373,351)
$ 52,265,114
See Notes to Financial Statements 27
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Licenses and permits
Intergovernmental
Contributions from property owners
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Other
Capital leases
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 Safety
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
Budget Amounts Actual
Original Final Amounts
$ 84.640,520 $ 84,640,520 $ 84,640,520
22,420.500
1,393,900
8,219,100
130,600
1,322,250
4,152,900
267,500
22,490,500
1,623,900
9.624,732
130,600
1,241,650
4,852,900
267,500
5,600
- 182,094
342,149 348,540
$122,889,419 $125,408,536
$ 974,647
397,179
2,025,465
1,549,223
655,003
848,129
432,564
6,882,210
10,183,852
311,089
1,034,977
1,018,060
387,908
567,704
4,862,052
137,357
18,502,999
969,242
442,112
227.521
1,371,678
3,010,553
1,025,668
759,094
1,784,762
$ 974,649
610,272
2,087,850
1,607,632
659,523
830,776
614,658
7.385, 360
10,221,691
296,792
1,039,818
1,018,840
387,908
594,033
4,955,724
137,357
18,652,163
1,278,042
445,112
228.041
1,398,178
3,349,373
1,614,080
961,594
2,575,674
22,665,855
2.107,035
9,142,554
154,417
1,213,519
5,239,552
359,114
37,616,690
154,940
182,094
313,134
$163,789,424
$ 847,310
645,374
1,921,939
1,208,229
543,909
849,J70
550, 54
6,566,585
9,407,689
338,040
1,154,461
908,382
353,834
475,189
4,375,301
129,547
17,142,443
987,276
373,845
202,137
1,351,164
2,914,422
694,007
515,928
1,209,935
Variance with
Final Budget
Positive
(Negative)
175,355
483,135
(482,178)
23,817
(28,131)
386,652
91,614
37,616,690
149,340
(35,406)
$ 38,380,888
$ 127,339
(35,102)
165,911
399,403
115,614
(18,494)
64,104
818,775
814,002
(41,248)
(114.643)
110,458
34,074
118.844
580,423
7,810
1,509,720
290,766
71,267
25,904
47,014
434,951
920,073
445,666
1,365,739
See Notes to Financial Statements 28
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Public Works
Administration
$ 539,578
$ 569,825
$ 468,308
$ 101,517
Development services
1,154,631
1,279,367
1,051,420
227,947
Maintenanceloperations - Street
1,824,891
1,939,636
842,383
1,097,253
Maintenanceloperations - Lighting
1,030,307
1,052,873
905,902
146,971
Traffic
1,035,523
852,644
474,052
378,592
Construction management
682,978
680,904
1,333.130
(652,226)
Total public works
6,267,908
6,375,249
5,075,195
1,300,054
Capital outlay
-
-
37,616,690
(37,616,690)
Transfers to other funds
1,999,460
1,599,532
812,135
787,397
Total Charges to Appropriations
38,447,892
39,937,351
71,337,405
(31,400,054)
Budgetary Fund Balance, June 30
$ 84,441,527
$ 85,471,185
$ 92,452,019
$ 6,980,834
See Notes to Financial Statements 29
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 2
YEAR ENDED JUNE 30. 2008
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$10,076,956
$10,076,956
$10,076,956
$ -
Resources (Inflows):
Taxes
5,563,900
5,701,660
5,771,938
70,278
Use of money and property
13,436,401
752,687
853,823
101,136
Other
-
127,200
115,417
(11,783)
Transfers from other funds
9,378,966
9,378,966
-
Amounts Available for Appropriation
$ 29,077,267
$ 26,037,469
$ 26,197,100
$ 159,631
Charges to Appropriation (Outflow):
Planning and development
$ 997,669
$ 5,966,854
$ 5,302,598
$ 664,256
Transfers to other funds
1,955,846
6,865,944
4,380,828
2,485,116
Total Charges to Appropriations
2,953,515
12,832,798
9,683,426
3,149,372
Budgetary Fund Balance, June 30
$ 26,123,742
$13,204,671
$16,513,674
$ 3,309,003
See Notes to Financial Statements 30
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Inventories
Deposit
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
Capital leases payable
Total Noncurrent Liabilities
Total Liabilities
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
$ 169,001 $ 4,527,594
12,090 -
488 18,489
1,865 -
64,041
250,000
497,485 4,546,083
43,459,062 16, 567,065
43,459,062 16, 567, 065
$ 43,956,547 $ 21,113,148
$ 151,711 $ 25,267
1,757 2,331
37,000 -
1,266
191,734 27,598
3,415,275 -
- 3,928
681,047 -
4,096,322 3,928
4,288,056 31,526
42, 778,015 16, 567,065
(3,109,524) 4,514,557
39,668,491 21,081,622
$ 43,956,547 $ 21,113,148
See Notes to Financial Statements 31
CITY OF LA OUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2008
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 capital assets
Total Non -operating
Revenues(Expenses)
Income (Loss) Before Contributions and Transfers
Capital contributions
Transfers out
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
$ 3,814,233 $ 1,507,101
3,814,233 1,507,101
73,845
97,953
-
94,687
126,622
3,797,186
84,679
-
126,002
698,582
763,791
64,536
61,598
4,634,149 1,355,332
(819,916) 151,769
4,310 213,505
(127,432) -
(47,721) 5,985
(170,843) 219,490
(990,759) 371,259
352,687 517,464
- (1,262,074)
(638,072) (373,351)
40,306,563 21,454.973
(638,072) (373,351)
$ 39,668,491 $ 21,081,622
See Notes to Financial Statements 32
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2008
Cash Flows from Operating Activities:
Cash received from customers and users
Cash received from/(paid to) interfund service provided
Cash paid to supplies for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Transfers out
Advance from other funds
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Insurance proceeds
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
Business -Type
Activities -
Enterprise
Funds
Golf
Course
Governmental
Activities -
Internal
Service Funds
$ 3,866,771 $ 1,507,101
(2,260) -
(4,065,894) (494,718)
(73,499) (97,590)
(274,882) 914,793
(1,262,074)
865,985
865,985 (1,262,074)
(75,031) (327,033)
(404,574) -
(44,148)
2,100
7,840
(523,753) (317,093)
4,074 216,674
4,074 216,674
71,424 (447,700)
97,577 4,975,294
$ 169,001 $ 4,627,594
See Notes to Financial Statements 33
CITY OF to QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2008
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 deposits receivable
(Increase) decrease in inventories
(Increase) decrease in due from other governments
Increase(decrease)in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
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 assets/liabilities resulting from the initiation
of a capital lease
Business -Type
Activities -
Enterprise
Funds
Golf
Course
Governmental
Activities -
Internal
Service Funds
$ (819,916) $ 151.769
698,582
763,791
18,810
-
-
330
1,151
-
226
(183,185)
(1,461)
345
604
12,000
-
(2,895)
-
-
(240)
545,034
763,024
$ (274,882) $ 914,793
352,687 $ 517,464
259,774
See Notes to Financial Statements 34
CITY OF LA QUINTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2008
Assets:
Cash and investments
Receivables:
Taxes
Interest
Total Assets
Liabilities:
Deposits
Total Liabilities
Agency
Funds
$ 609,164
22,322
2,249
$ 633,735
$ 633,735
$ 633,735
See Notes to Financial Statements 35
36
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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.
The City provides many community services including public safety, highway and street
maintenance, health and social services, cultural and leisure services, public
improvements, planning and zoning services, and community development services.
The accounting policies of the City conform to generally accepted accounting principles
as applicable to governments. As required by generally accepted accounting principles,
these financial statements present the government and its component units, which are
entities for which the government is considered to be financially accountable. The City is
considered to be financially accountable for an organization if the City appoints a voting
majority of that organization's governing body and the City is able to impose its will on
that organization or there is a potential for that organization to provide specific financial
benefits to or impose specific financial burdens on the City. The City is also considered
to be financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval
from the City). In certain cases, other organizations are included as component units if
the nature and significance of their relationship with the City are such that their exclusion
would cause the City's financial statements to be misleading or incomplete.
All of the City's component units are considered to be blended component units. Blended
component units, although legally separate entities, are, in substance, part of the
government's operations and so data from these units are reported with the interfund
data of the primary government.
The following organizations are considered to be component units of the City:
La Quinta Redevelopment Agency
The La Quinta Redevelopment Agency (Agency) has established two redevelopment
project areas pursuant to the State of California Health & Safety Code, Section
33000 entitled "Community Redevelopment Law". On November 29, 1983 and
May 16, 1989, the City Council approved and adapted the Redevelopment Plans for
the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These
plans provide for the elimination of blight and deterioration, which was found to exist
in the project areas. Although the Agency is legally separate, it is reported as if it
were part of the City because the City Council also serves as the governing board of
the Agency. Separate financial statements of the Agency can be obtained at City
Hall.
37
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
Statements and Interpretations, APB Opinions,
were issued on or before November 30, 1989,
GASB pronouncements.
Government -wide Financial Statements
pronouncements, as well as the FASB
and Accounting Research Bulletins that
that does not conflict with or contradict
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.
38
City of La Quinta
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
of separate funds, each of which is considered to be a separate accounting entity.
The operations of each fund are accounted for with a separate set of self -balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures
or expenses, as appropriate. Governmental resources are allocated to and
accounted for in individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled.
Fund financial statements for the governmental, proprietary, and fiduciary funds are
presented after the government -wide financial statements. These statements display
information about major funds individually and nonmajor funds in the aggregate for
governmental and enterprise funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds of the
City primarily represent assets held by the City in a custodial capacity for other
individuals or organizations.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government -wide Financial Statements
The 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 -accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that the
amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accured for the reporting period. The City uses
a 60 day availability period, except for state gas tax which is 90 days.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related
goods or services are provided). Locally imposed 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.
Government -mandated and voluntary non -exchange transactions are recognized as
revenues when all applicable eligibility requirements have been met.
39
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 another 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
charges to customers for sales and services.
40
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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
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 — Proiect 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 f
planning, design and construction of various capital
La Quinta and the La Quinta Redevelopment Agency
f VUCVVIVVIIIVIJL/ UOIR.V rlvl04tl Iua INN. I -1
the bond proceeds, interest and other funding
planning, construction and land acquisition.
Civic Center Fund — To account for the accumula
developer fees for the acquisition, construction, or
fund is used to account for the accumulation of
service for bond principal and interest and trustee
is used to account for the
ects throughout the City of
Proiect Fund — To account for
will be used for development,
of resources provided through
ovement of the Civic Center.
rvice Fund — This debt service
urces for the payment of debt
for Project Area No. 1.
Redevelopment Agency Proiect 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.
41
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
The City's major proprietary fund is as follows:
Golf Course — To account for the activities of the SilverRock Golf Resort.
Other fund types of the City are as follows:
Internal Service Funds:
Equipment Replacement Fund — This fund accounts for equipment and vehicle
maintenance and replacement services provided to other departments on a
cost -reimbursement basis.
Information Technology Fund — This fund is used to account for the acquisition
for computer equipment, maintenance, and services to support information
systems within the City. Costs are reimbursed by the benefiting departments.
Park Equipment and Facilities Fund — This fund is used to account for the
purchase and replacement of City owned park facility infrastructure. Costs are
reimbursed by the benefiting departments.
Agency Funds: These funds account for assets held by the City as an agency for
assessment district bondholders.
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.
42
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
Inventory
Inventory is valued at cost using the first in / first out (FIFO) method. The City uses
the consumption method of accounting for inventories.
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.
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
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
employee terminates with a minimum of two years service, the employee is entitled to
receive 25% of the value of his unused sick leave. The percentage increases by
25% for each five-year period until the employee is entitled to 75% of the value of his
unused sick leave. This will occur upon the completion of ten years of continuous
employment.
43
City of La Quinta
Notes to Financial Statements (Continued)
Note 1:
Note 2:
Summary of Significant Accounting Policies (Continued)
Fund Balance
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted
by outside parties for use for a specific purpose.
It. STEWARDSHIP
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 funds are approved
by City Council. 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, 2008, the following funds had deficit fund balances:
Major Capital Projects Funds
Civic Center $ (9,393,000)
Major Debt Service Funds
Redevelopment Agency PA No. 2 (4,455.247)
Nonmajor Capital Projects Funds:
Library
(1,084,327)
RCTC
(318,391)
Parks and Recreation
(1,513,574)
Library Development
(1,949,006)
Fire Facility
(939,634)
LO
City of La Quinta
Notes to Financial Statements (Continued)
Note 2: Stewardship, Compliance and Accountability (Continued)
c. Excess of expenditures over appropriations areas follows:
Expenditures for the year ended June 30, 2008, exceeded the appropriations of the
General Fund and major special revenue funds as follows:
Budget
Actual
Variance
General Fund:
General Government
Fiscal services
$ 830,776
$ 849,270
$ (18,494)
City Manager
610,272
645,374
(35,102)
Capital outlay
-
37,616,690
(37,616,690) '
Public Safety
Building & safety admin
296,792
338,040
(41,248)
Building
1,039,818
1,154,461
(114,643)
Public Works
Construction management
680,904
1,333,130
(652,226)
' Variance relates to capital assets related to Highway 111 that were contributed
to the City by CalTrans.
Ill. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Cash and investments as of June 30, 2008, are classified in the accompanying financial
statements as follows:
Statement of Net Assets:
Cash and investments
Cash with fiscal agent
Statement of Fiduciary Net Assets:
Cash and investments
Total cash and investments
Cash and investments as of June 30, 2008, consist of the following:
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
$ 155,927,887
40,831,407
609.164
$ 197,368,458
$ 1,250
(1,533,145)
198,900,353
$ 197,368,458
W
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Investments Authorized by the California Government Code and the Entity's Investment
Policy
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.
'Maximum
"Maximum
Investment
Investment Types 'Maximum Percentage of
In One
Authorized by State Law Maturity Portfolio
Issuer
U.S. Treasury Obligations 5 years None
None
U.S. Agency Securities 3 years None
$20 million
Commercial Paper 90 days 15%
$5 million
Certificates of Deposit 3 years 60%
None
Medium -Term Notes 3 years 10%
$5 million
Money Market Mutual Funds 60 days 60%
10%
Local Agency Investment Fund (LAIF) N/A 25%
$40 million
Investment Agreements N/A N/A
N/A
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.
46
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
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.
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:
Investment
U.S. Treasury bills
Federal agency securities:
Federal Home Loan Mortgage Corp
Federal Home Loan Bank
Federal Farm Credit Bank
Commercial paper
Medium term notes
State investment pool
Held by bond trustee:
Money market funds
U.S. Treasury bills
Total
Remaining Maturity (in Months)
3 Months 4 to 6 13 to 18
Total
or Less
Months
7 to 12 Months Months
$ 13.958,686
$ 13,958,686
$ -
$ - $
19,883,579
9,982,785
7,428,655
2,472,139
20,016,078
-
20,016,078
-
19,812,974
4,996,343
9,905,130
4,911,501
27,900,184
27,900,184
-
-
7,971,357
-
2,986,493
3,004,352 1,980,512
48,525,976
48,525,976
-
- -
12,104,440 12,104,440 -
28,727,079 4,978,679 23,748,400
$ 198,900,353 $ 122,447,093 $ 64,084,756 $ 10,387,992 $ 1,980,512
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not full 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 to those rated A-1 and P-1 or higher from Standard and Poor's (S&P) and
Moody's, respectively; medium term notes that are rated "AA" or higher by S&P; and money
market mutual funds that are rated "AAA". The quality of U.S. Treasury securities is not
analyzed since they are not deemed to have credit risk.
As of June 30, 2008, the City had investments with a variety of issuers, all of which were
"investment grade" and were legal under state and municipal law. The City's investments in
commercial paper were all rated A-1 and P-1 or higher from S&P and Moody's. The City's
investments in medium term notes were all rated AA or better by S&P. The City's
investments in money market mutual funds and federal agency securities were all rated
"AAA" by S&P and Moody's. As of June 30, 2008, the City's investments in external
investment pools were unrated.
Concentration of Credit Risk
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 $20 million) and Commercial Paper and
Medium -Term Notes (limited to a face value of $5 million). As of June 30, 2008, the following
are 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.
Federal Home Loan Mortgage Corp. 10.00%
Federal Home Loan Bank 10.06%
Federal Farm Credit Bank 9.96%
47
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-rata share of the
fair value provided by LAIF for the entire LAW 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.
Note 4: Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of
assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of La Quinta accrues only those taxes that are received from the County
within sixty days after year-end.
Lien date
January 1
Levy date
July 1
Due dates
November 1 and February 1
Collection dates
December 10 and April 10
City of La Quinta
Notes to Financial Statements (Continued)
Note 4: Property Taxes (Continued)
The La Quinta Redevelopment Agency's primary source of revenue comes from property
taxes. Property taxes allocated to the Agency are computed in the following manner:
a) The assessed valuation of all property within the project area is determined on the
date of adoption of the Redevelopment Plan.
b) Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the
"frozen" assessed valuation of the property are allocated to the City and other
districts.
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. Broadened property tax exemptions could have a similar
effect. Conversely, 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 6: Notes Receivable
Outstanding
Balance at
June 30, 2008
In September 1994, the Redevelopment Agency sold certain real property to
LING 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. $ 3,641,983
In December 2000, the Redevelopment Agency entered into an agreement with
LING 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.
Other notes receivable
Total notes receivable balance at June 30, 2008
9,443,802
40,675
$ 13,126,460
49
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, 2008, is as
follows:
Beginning
Ending
Balance at
Balance at
July 1, 2007
Additions Deletions Transfers
June 30, 2008
GovernmentalActivities:
Capital assets, not being depredated:
Land
$ 75,077,785
$ 5,988,776 $ 68,000 $ (352,687)
$ 80,645,874
Right of way
260,717,812
21,958,614 - -
282,676,426
Construction -in -progress
42,662,144
45,456,601 26,841,354 (21,578,184)
39,699,207
Total Capital Assets,
Not Being Depredated
378,457,741
73,403,991
26,909,354
(21,930,871)
403,021,507
Capital assets, being depredated
Buildings and improvements
37,263,921
158,939
65,082
17,769,935
55,127,713
Equipment and fumiture
2,046,095
315,336
377,826
-
1,983,605
Vehicles
1,366,729
302,315
84,326
-
1,584,718
Infrastructure
130,193,911
18,728,146
909,097
3,808,249
151,821,209
Total Capital Assets,
Being Depreciated
170,870,656
19,504,736
1,436,331
21,578,184
210,517,245
Less accumulated depredation,
Buildings and improvements
9,230,538
1,578,325
36,648
-
10,772,215
Equipment and furniture
1,290,670
139,342
359,937
-
1,070,075
Vehicles
844,442
168,335
83,993
-
928,784
Infrastructure
60,149,383
4,443,442
755,063
-
63,837,762
Total Accumulated
Depredation
71,515,033
6,329,444
1,235,641
-
76,608,836
Total Capital Assets,
Being Depreciated, Net
99,355,623
13,175,292
200,690
21,578,184
133,908,409
Govemmental Achvities
Capital Assets, Net
$ 477,813,364
$ 86,579,283
$ 27,110,044
$ (352,687) ` $
536,929,916
(') 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 $ 87,134
Public safety 826,355
Planning and development 16,666
Community services 845,037
Public works 4,554,252
Total governmental activities $ 6,329,444
50
City of La Quinta
Notes to Financial Statements (Continued)
Note 6: Capital Assets
(Continued)
Capital asset activity
for business
-type activities for the year ended June 30, 2008, is as
follows:
Beginning
Ending
Sal ance at
Balance at
July 1, 2007
Additions
Deletions
Transfers June 30, 2008
Business -Type Activities:
Capital assets, not being depreciated
Land
$ 36,458,147
$ 29,998
$ -
$ 352,687 $ 36,840,832
Total Capital Assets,
Not Being Depreciated
36,458,147
29,998
352,687 36,840,832
Capital assets, being depreciated:
Buildings and improvements
6,591,432
45,033
-
- 6,636,465
Equipment and furniture
1,770,849
259,774
251,475
1,779,148
Vehides
20,348
-
-
- 20,348
Software
20,255
-
20,255
Total Capital Assets,
Being Depredated
8,402,884
304,807
251,475
- 8,456216
Less accumulated depreciation:
Buildings and improvements
569,728
233,804
-
- 803,532
Equipment and furniture
753,130
456,657
203,754
- 1,006,033
Vehicles
10,173
4,070
-
- 14243
Software
10,127
4,051
-
14,178
Total Accumulated
Depredation
1,343,158
698,582
203,754
- 1,837,986
Total Capital Assets,
Being Depredated, Net
7,059,726
(393.775)
47,721
- 6,618,230
Governmental Activities
Capital Assets, Net
$ 43,517,873
$ (363,777)
$ 47,721
$ 352,687 ` $ 43,459,062
(`) 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 $ 698,582
51
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, 2008:
Beginning
Balance at
July 1, 2007 _
City:
Compensated absences payable
$ 734,054 $
Due to the Coachella Valley
Association of Governments
278,311
Developer Agreement Payable
643,539
Copier Lease 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
139,145,000
4,431,179
6,025,000
1,750,000
Balance at June Due within one
Additions Deletions 30, 2008 year
921,291 $ 822,190 $ 833,155 $ 833,155
- 50,000 228,311 50,000
- 143,753 499,786 155,972
182,094 - 182,094 32,925
- 2,795,000 136,350,000 2,960,000
- 770,558 3,660,621 785,968
- 110,000 5,915,000 115,000
- 150,000 1,600,000 200,000
93,645,000 - 1,930,000 91,715,000 1,995,000
$ 246,652,083 $ 1,1 33,385 $ 6,771,501 240,983,967 $ 7,128,020
Less Unamortized premiums/discounts (841,087)
Net Long -Term Debt $ 240,142,880
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, 2008, 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, 2008, the balance
payable was $228,311.
52
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, 2008, are as follows:
Principal
2008 - 2009
$ 50,000
2009 - 2010
50,000
2010 - 2011
50,000
2011 - 2012
50,000
2012 - 2013
28,311
Totals $ 228,311
Developer Agreement Payable
In December 1998, the City entered into a tax sharing agreement with Stamko
Development Co. in relation to the development of an auto mall located within the City.
For a period of ten years, the agreement requires the City to make quarterly payments to
the developer in the amount of 33% of the sales and use tax revenues generated by the
site up to a maximum amount of $122,250 in any twelve month period. Additionally, if the
sales and use tax revenues generated exceed $530,000, adjusted annually by the CPI
index, the City is required to pay $76,204 for that year for a maximum of ten years, based
upon a $500,000 note at an interest rate of 8.5% For the year ended June 30, 2008, the
City paid the developer $122,250 in sales tax reimbursement and $21,503 since the
sales tax generated exceeded the required amount. The balance at June 30, 2008, is
$499,786.
The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2008, are as follows:
Principal Interest
2008 - 2009 $ 155,972 $ 42,482
2009 - 2010 169,230 29,224
2010- 2011 174,584 23,870
Totals $ 499,786 $ 95,576
Copier Lease Payable
In June 2008, the City entered into a 5-year lease agreement for photocopiers for
$182,094 maturing in monthly increments ranging from $2,682 in July 2008 to $3,417 in
June 2013, with interest payable monthly at 4.93%. This lease agreement qualifies as a
capital lease for accounting purposes and therefore, has been recorded at the present
value of the future minimum lease payments at the inception date.
53
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum future lease obligations and the net present value of the lease payments as
of June 30, 2008 are as follows:
Year Ending
June 30,
Total
2009
$ 44,358
2010
44,358
2011
44,358
2012
44,358
2013
44,358
Total Payments
$ 221,790
Less Amount Representing Interest
(39,696)
Outstanding Principal
$ 182,094
Tax Allocation Bonds
As of June 30, 2008, 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
May 5, 1994, in the amount of $26,665,000 to refund the outstanding aggregate
principal amount of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The
remaining proceeds were used to finance certain capital improvements within the
La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually
on March 1 and September 1 of each year until maturity. The interest on and
principal of the bonds are payable solely from pledged tax increment revenues. The
bonds are not 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, 2008, is $10,785,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal
Interest
2008- 2009
$ 1,865,000
$ 719,233
2009-2010
2,000,000
578,160
2010 -2011
2,145,000
426,868
2011-2012
2,305.000
264,443
2012 - 2013
2,470,000
90,155
$ 10,785,000
$ 2,078,859
54
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Series 1998, Proiect Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were
issued by the Agency to refund the outstanding aggregate principal amount of the
Agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to
finance certain capital improvements within the La Quinta Redevelopment Project
Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable
semi-annually on March 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable 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, 2008, is $15,760,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal
Interest
2008 - 2009
$ -
$ 819,520
2009 - 2010
-
819,520
2010 - 2011
-
819,520
2011-2012
-
819,520
2012 - 2013
-
819,520
2013-2018
3,635,000
3,644,030
2018 - 2023
4,690,000
2,567,500
2023 - 2028
6,035,000
1,179,750
2028-2033
1,400,000
36,400
Totals
$ 15,760,000
$ 11,525,280
Series 1998, Proiect Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were
issued by the Agency to refund the outstanding aggregate principal amount of the
Agency's Tax Allocation Bonds, Series 1992. The remaining proceeds were used to
finance certain capital improvements within the La Quinta Redevelopment Project
Area No. 2.
Interest rates on the bonds range from 3.75% to 5.28% and are payable
semi-annually on March 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable solely from pledged tax increment revenues of
Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033, are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and
September 1, 2019, respectively, and on each September 1 thereafter at a price
equal to the principal amount thereof plus accrued interest.
Al
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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, 2008, is $5,915,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal
Interest
2008-2009
$ 115,000
$ 305,184
2009 - 2010
120,000
299,550
2010 -2011
125,000
293,272
2011-2012
130,000
286,738
2012-2013
140,000
279,819
2013-2018
800,000
1,282,756
2018- 2023
1,030,000
1,047,784
2023-2028
1,335,000
738,806
2028- 2033
1,720,000
339,938
2033-2038
400,000
10.500
Totals $ 5,915,000 $ 4,884,347
Series 2001 Project Area No. 1
On August 15, 2001, the Agency issued tax allocation bonds in the amount of
$48,000,000 to finance capital projects benefiting the La Quinta Redevelopment
Project Area No. 1. The 2001 tax allocation bonds were issued at a discount of
$422,400 and issuance costs of $1,517,325.
The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and
mature on September 1, 2021, and $30,720,000 of term bonds that accrue interest at
5.18% and mature on September 1, 2031. The interest and principal on the bonds
are payable from pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2008,
is $48,000,000 with an unamortized discount of $401,975.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal Interest
2008-2009 $ - $ 2,430,720
2009-2010 - 2,430,720
2010-2011 - 2,430,720
2011 - 2012 - 2,430,720
2012-2013 - 2,430,720
2013-2018 8,660,000 11,113,600
2018 - 2023 11,050,000 8,659,885
2023-2028 14,145,000 5,482,373
2028 - 2033 14,145,000 1,487,798
Totals $ 48,000,000 $ 38,897,256
56
City of La Quinta
Notes to Financial Statements (Continued)
Note 7:. Changes in Long -Term Liabilities — Governmental Activities (Continued)
Series 2002, Proiect Area No. 1
On June 12, 2002, the Agency issued tax allocation bonds in the amount of
$40,000,000 to finance capital projects benefiting the La Quinta redevelopment
Project Area No. 1. The 2002 tax allocation bonds were issued at a discount of
$360,000 and issuance costs of $1,250,096.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds.
Interest Rates on serial bonds range from 1.75% and 4.00% and are payable
semi-annually on March 1 and September 1 of each year until maturity. Term bonds
accrue interest at 5.00% and 5.125% and mature on September 1, 2022 and
September 1, 2023. The interest and principal on the bonds are payable from
pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2008,
is $37,060,000 with an unamortized discount of $353,695.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal
Interest
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
2012-2013
735,000
1,727,981
2013 - 2018
3,875,000
8,100,781
2018 - 2023
4,945,000
7,003,781
2023-2028
6,330,000
5,583,175
2028 - 2033
18,495,000
3,004,659
Totals
$ 37,060,000
$ 32,597,202
Series 2003. Proiect Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quinta Redevelopment
Project Area No. 1. The 2003 tax allocation bonds were issued at a discount of
$277,200 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, 2008, is $24,745,000 with an
unamortized discount of $231,628.
57
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, 2008, are as follows:
Principal
Interest
2008-2009
$ 460,000
$ 1,5 00,802
2009-2010
475,000
1,508,106
2010 -2011
505,000
1,481,401
2011-2012
530,000
1,453,198
2012 - 2013
560,000
1,423,495
2013 - 2018
3,315,000
6,569,346
2018-2023
4,485,000
5,364,860
2023-2028
6,095,000
3,707,560
2028-2033
8,320,000
1,406,496
Totals $ 24,745,000 $ 24,445,264
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, 2008, totaled
$3,660,621. 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, 2008, are as follows:
Principal
2008 - 2009
$ 785,968
2009 - 2010
801,688
2010 - 2011
817,722
2011 - 2012
834,076
2012 - 2013
421,167
Totals $ 3,660,621
Due to County of Riverside - Proiect Area No. 2
Based on an agreement dated July 5, 1989, between the Agency and the County of
Riverside, until the tax increment reaches $5,000,000 annually in Project Area No. 2,
the Agency will pay to the County 50% of the County portion of tax increment. At the
County's option, the County's pass -through portion can be retained by the Agency to
finance new County facilities or land costs that benefit the County and serve the La
Quinta population. Per the agreement, the Agency must repay all amounts withheld
from the County. The tax increment is to be paid to the County in amounts ranging
from $100,000 to $250,000 over a payment schedule through June 30, 2015.
Interest does not accrue on this obligation. The balance at June 30, 2008, is
$1,600,000.
Elf i
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 amounts due to the County of
Riverside as of June 30, 2008, are as follows:
Principal
2008 - 2009
$ 200,000
2009 - 2010
200,000
2010 - 2011
200,000
2011 - 2012
250,000
2012 - 2013
250,000
2013 - 2018
500,000
Totals $ 1.600,000
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
amounts 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, 2008, is $5,540,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal
Interest
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 - 2013
470,000
203,130
2013 - 2018
2,775,000
582,056
2018 - 2023
650,000
18,038
Totals $ 5,540,000 $ 1,856,000
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the
amount of $90,000,000 to finance projects benefiting low and moderate income
housing in La Quinta Redevelopment Project Area No. 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.
59
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Interest is payable semi-annually on March 1 and September 1 of each year,
commencing September 1, 2005. Interest payments range from 3% to 5.25% per
annum. The interest and principal on the bonds are payable from pledged tax
increment revenues.
Term bonds maturing on September 1, 2024, September 1, 2029 and
September 1, 2034, are subject to mandatory redemption from minimum sinking fund
payments, in part by lot, on September 1, 2017, September 1, 2025, and
September 1, 2030, respectively, and on each September 1 thereafter at a
redemption price equal to the principal amount thereof plus accrued interest to the
redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement There are certain limitations regarding the issuance of parity
debt as further described in the official statement. The principal balance of
outstanding bonds at June 30, 2008, is $86,175,000 with an unamortized premium of
$146,211.
The minimum annual requirements to amortize the bond payable as of
June 30, 2008, are as follows:
Principal
Interest
2008 - 2009
$ 1,615,000
$ 4,304,994
2009 - 2010
1,670,000
4,243,331
2010 - 2011
1,740,000
4,175,131
2011-2012
1,805,000
4,099,719
2012 - 2013
1,890,000
4,016,581
2013 - 2018
10,925,000
18,533,713
2018 - 2023
14,090,000
15,279,906
2023 - 2028
18,165,000
11,107,313
2028 - 2033
23,235,000
5,912,966
2033 - 2038
11,040,000
572,975
Totals $ 86,175,000 $ 72,246,629
Note 8: Changes in Long -Term Liabilities — Business -type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2008, were as
follows:
Balance at Balance at Due within
July 1, 2007 Additions Deletions July 1, 2008 one year
Golf Course:
Capital leases payable $ 825,848 $ 259,774 $ 404,575 $ 681,047 $ 395,831
The City of La Quinta entered into several capital lease agreements for the operation of the
Silver Rock 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.
m
City of La Quinta
Notes to Financial Statements (Continued)
Note 8: Changes in Long -Term Liabilities — Business -type Activities (Continued)
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
using an incremental borrowing rate of 6.50% at the inception of the lease. The
lease is payable in 36 monthly installments of $7,962 which began February 1,
2008.
$ 226,643
The present value 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.
96,331
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.
166,236
The present value 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 $1,243, which began
November 28, 2004.
4,890
The present value of the minimum lease payment on golf carts was capitalized at
$26,674 using an incremental borrowing interest rate of 7.0% A the inception of the
lease. The lease is payable in 36 monthly installments of $824, which began
February 1, 2006.
5,633
The present value of the minimum lease payment on lawn equipment was
capitalized at $90,554 using an incremental borrowing interest rate of 6.99% at the
inception of the lease. The lease is payable in 36 monthly installments of $2,796,
which began October 1, 2006.
40,043
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.
8,386
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
the lease. The lease is payable in 60 monthly installments of $1,373, which began
April 1, 2005. 22,731
TFG-Cal forma, L.P.
The present value of the minimum lease payment on a GPS system was capitalized
at $284,650 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
November 11, 2005. 110,154
Total capital leases payable as of June 30, 2008 $ 681,047
61
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
2008 - 2009 $ 395,831 $ 30,497
2009 - 2010 230,674 8,992
2010 - 2011 54,542 1,188
Total $ 681,047 $ 40,677
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, 2008:
Amount
Outstanding at
Proceeds Maturity Date Interest Rate June 30, 2008
Assessment District No. 97-1 $ 705,262 9/2/2018 4.10% - 5.20% $ 460,000
Assessment District No.2001-1 2,285,000 9/2/2015 5.00%-6.60% 1,120,000
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, 2008, are $2,880,000.
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.
Note 11: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2008, are as
follows:
Due to Other
Funds
Non -Major
Governmental
TOTAL
Due From Other Funds
General Fund
$ 19,414
$ 19,414
RDA PA #2 Debt Service
5,684,047
5,684,047
Non -Major
312,000
312,000
Total:
$ 6,015,461
$ 6,015,461
62
City of La Quinta
Notes to Financial Statements (Continued)
Note 11: Interfund Receivables and Payables (Continued)
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 noncurrent interfund receivable and payable as of June 30, 2008, are as
follows:
Advances From Other Funds
RDA PA #1 RDA PA #2
Non -Major
Civic Center
Debt Service Debt Service Golf Course
Governmental
TOTAL
Advances to Other Funds
General Fund $ 9,393,000
$ 12,000,000 $ 19,378,966 $ 3,415,275
$ 1,077,725
$ 45,264,966
Redevelopment Agency -
- - -
3,462,579
3,462,579
PA No. 1 Capital Projects
Non -Major Governmental -
- - -
939,634
939,634
Total $ 9,393,000
$ 12,000,000 $ 19,378,966 $ 3,415,275
$ 5,479,938
$ 49,667,179
a) As of June 30, 2008, the amount due to the General Fund from RDA PA No. 1 Debt
Service was $12,000,000. This consists of an outstanding advance of $6,000,000 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, 2008, the amount due to the General Fund from RDA PA No. 2 Debt
Service was $19,378,966. This consists of a $10,000,000 advance loaned to the
Redevelopment Agency with repayment beginning in 2035136 and accrued interest at
10% per annum and a $9,378,966 advance loaned to the Redevelopment Agency
accruing interest at 7% on December 4, 2007, with an anticipated repayment date of
2018/2019.
c) As of June 30, 2008, the General Fund has advanced to the Golf Course fund
$3,415,275. 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, 2008, the remaining balance of the advance for the La Quinta Community Park
is $1,513,574.
e) 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, 2008, is $1,949,005.
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, 2008,
the remaining balance of the advances is $939,634.
63
City of La Quinta
Notes to Financial Statements (Continued)
Note 11: Interfund 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, 2008, the Civic Center expansion was completed and the amount of the
advance was $9,393,000 outstanding. The advance accrues interest that would have
been earned by the Local Agency Investment Fund.
Note 12: Interfund Transfers
L.Ndderate
ROAPA#1
Generzl
Inwme Houmn9
Capdal
Cap"
RDAPA#1
RDA PA#2
Nan -Mayor
Internal
Fund
PA#2
Improvement
Pmgds
Chic Center
Debt Sallee
Data Semce
Govemmenlal
Senece Funds
TOTAL
TRANSFERSIN
General Fund
E -
E -
E -
S -
S -
E -
S -
S 313,134
S - S
313.134
Ldw/Moderale Income
Housmg PA#2
-
-
-
-
9,378,%6
-
-
9,378.966
Capdal lmp..anend
810135
2.111,026
3623.184
6240,662
-
-
26,576.540
1262,074
40,624.429
RDA PA#1 Capdal Pfoleds
-
-
-
-
25,000,000
-
180.355
-
25.180.355
RDA PA#1 Debt Semce
-
_
4.557,990
-
4557,990
RDA PA#2Debt Ser e
-
1,955.W
-
-
-
-
1.955.646
Non-Malo(Govemmenlal
2,000
313,156
40,000
3,970,%0
1955,646
312.000
6593,02
Talal.
E 812,135
S I,300,028
S 10,000
S 3.623,184
3 8,240,662
f 28970,960
$ 11,331,012
$ 31,940,027
$ 1262,074 S
88,604682
The following describes the major transfers in and transfers out included in the financial
statements:
a) $4,557,990 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) $2,053,345 was transferred from the Low/Moderate Housing Project Area No. 2 Fund
to the Capital Improvement Fund to pay for various capital projects. $1,955,845 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) $3,970,961 and $1,955,845 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.
$25,000,000 was transferred from RDA Project Area No. 1 Debt Service Funds to the
RDA Capital Projects — PA No. 1 Fund to fund various capital projects within the
Project Area.
d) $3,623,184 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) $21,294,034 was transferred to the Capital Improvement Fund from the RDA 2004
Low/Mod Bond Fund for various capital projects funded by bond proceeds.
f) The Library Fund transferred to the Capital Improvement Fund $2,821,281 to fund
Library Phase 2 and museum expansion project costs.
g) $6,240,662 was transferred to the Capital Improvement Fund from the Civic Center
Fund to pay for the Civic Center expansion project.
0
City of La Quinta
Notes to Financial Statements (Continued)
IV. 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 12.744% 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 2008, the City's annual pension cost of $902,098 for PERS was equal to the City's
required and actual contributions.
Three -Year Trend Information for PERS
Required
Percentage
Fiscal Year
Contributions
Contributed
6/30/2006
$ 400,631
100%
6/30/2007
763,527
100%
6/30/2008
902,098
100%
Note 14: Post -Employment Health Benefits
The City provides health care benefits to retired employees in accordance with City MOU's.
To be eligible, the employee must be at least 50 years of age and have five years of service.
The amount provided by the City includes contributions ranging from $81 to $90 toward the
group benefit plan for the employee and is financed on a pay-as-you-go basis. As of
June 30, 2008, there were three retired employees receiving benefits. The total cost of
post -employment health benefits was $3,330.
Note 15: Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Insurance
Authority). The Insurance Authority is composed of 119 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 at
seq. The purpose of the Insurance 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 Insurance Authority's
pool began covering claims of its members in 1978. Each member government has an
elected official as its representative on the Board of Directors. The Board operates through a
9-member Executive Committee.
65
City of La Quinta
Notes to Financial Statements (Continued)
Note 15: Self Insurance (Continued)
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). 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 $5,000,000 and the associated loss development
reserves are pooled based on payroll. Costs of covered claims from $5,000,000 to
$50,000,000 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 Insurance Authority's investment
earnings.
Workers Compensation
The City also participates in the workers' compensation pool administered by the
Insurance Authority. Each member pays a primary deposit to cover estimated losses for
a fiscal year (claims ydar). 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 employer's liability
losses from $5,000,000 to $10,000,000 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 $300,000,000 are transferred to reinsurance
carriers. Costs in excess of $300,000,000 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 Insurance 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 10% deductible subject to a minimum of $25,000. The total insured value
of real and personal property is $36,696,000. 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.
Employee dishonesty, forgery and computer fraud insurance is held with Hartford Insurance
Company. Coverage is $1,000,000 with a $5,000 deductible.
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 $50,689,900.
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.
CYy
City of La Quinta
Notes to Financial Statements (Continued)
Note 16: 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.
Vista Dunes Court Yard Homes
In October 2007, the La Quinta Redevelopment Agency entered into an agreement pursuant
to which it transferred fee title to a parcel generally located at Adams Street and Miles
Avenue (the "Site") improved with 80 rental apartment units (the "Housing Development") to
National CORE. National CORE, in turn transferred the Site and Housing Development to a
limited partnership as a requirement to enter into a 15 year tax credit bond sale- In the future,
National CORE is obligated to (1) exercise its option to acquire the Site and Housing
Development from the limited partnership at the close of the 15 year tax credit period, as set
forth in the partnership agreement, and (2) convey fee title to the Site and Housing
Development to the City, as the Agency's successor, on the 55`h anniversary of the
permanent loan closing. As of the June 30, 2008, the permanent loan closing has not
occurred.
Note 17: Construction Commitments
The following material construction commitments existed at June 30, 2008:
Name
Silver Rock Resort Infrastructure
Silver Rock Resort Club House
Silver Rock Resort Entry Feature & Roads
Dune Palms Road and Ave 48 Housing
Community Park Land Acquisition
Adams Street Bridge Improvements
Note 18: Unreserved Fund Balances
Expenditures
Contract
to date as of
Remaining
Amount
June 30, 2008
Commitments
$ 26,358,941
$ 954,271
$ 25,404,670
25,412,010
690,917
24,721,093
5,594,224
74,897
5,519,327
30,153,435
15,604,746
14,548,689
8,000,000
2,569
7,997,431
12,408,001
69,270
12,338,731
Unreserved fund balances at June 30, 2008, consisted of the following:
Lovt/Moderate
Income
RDA PA No
RDA PA No
Other
Housing PA
1 Capital
2 Debt
Governmental
General Fund
No 2
Projects
Civic Center
Service
Funds
TOTAL
Designated for:
Emergency reserves
$19,651,824
$ -
$ -
$ -
$ -
$ -
$ 19,651.824
Cash flaws
3,689,359
-
-
-
-
-
3,689,359
Capital improvements
2,100.000
-
-
-
-
-
2,100.000
Educational purposes - CSUSB
250.000
-
-
-
-
-
250,000
Economic development
1,911,131
-
-
-
-
-
1.911,131
Carryover appropriations
2,673,793
-
-
-
-
-
2,673,793
Operations/prolects/hansfers
16,734,016
-
-
-
-
-
16,734,016
Undesignated
16,512,703
39,660,439
(9,393,000)
(4,455,247)
41,480,125
83,805,020
Total unreserved fund
balances (deficit)
$47,010,123
$ 16,512,703
$39,660,439
$(9,393,000)
$(4,455,247)
$41,480.125
$ 130,815,143
67
City of La Quinta
Notes to Financial Statements (Continued)
NoteIS: 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, 2008, the Golf Course had an operating loss before contributions and transfers of
$990,759.
Note 20: 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, 2008, the City made $171,679 in
reimbursement payments to the owner leaving an outstanding balance of $709,470.
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 any sales tax generated from 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 Costco business opened in November 2006. As of
June 30, 2008, the City made $290,676 in reimbursement payments to the owner leaving an
outstanding balance of $3,594,284.
m
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.
m
Development Agreement Fund — To account for the proceeds of development agreement revenues
collected and the related expenditures in accordance with State requirements.
Coachella Valley 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.
Justice Assistance Grant - To account for the revenues and expenditures of the Justice Assistance Grant
Program.
Proposition 1B Fund -_To account for the revenues and expenditures related to Proposition 1B monies.
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.
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.
Infrastructure Fund - To account for the accumulation of resources provided through developer fees for
the acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new
Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources
received prior to this date, and is budgeted by the Council through adoption of the annual capital
improvement program budget.
Transportation Fund. Parks and Recreations Fund Civic Center Fund Library Development Fund
Community Center Fund Street Facility Fund Park Facility Fund Fire Facility Fund — To account for the
accumulation of resources provided through developer fees for the acquisition, construction, or
improvement of the City's infrastructure. The Developer Impact Fee was adopted by the City Council on
August 16, 1999. Six new funds have been established to account for the specific impact areas of these
fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program
budget.
Redevelopment Agency Capital Projects Fund Area 2 - To account for the bond proceeds, interest and
other funding that will be used for development, planning, construction and land acquisition.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of,
governmental long-term debt principal and interest.
La Quinta Financing Authority Fund — To account for rental activity for the Civic Center and rental income
used to pay the Financing Authority civic Center and 2004 Local Agency Revenue Bond debt obligations.
70
THIS PAGE INTENTIONALLY LEFT BLANK
71
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
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
Special Revenue Funds
State
Gas Federal
Tax Library Assistance SLEBG
$ 30,455 $ - $ - $ 18,981
258 344
247.149 - 13,023 3,253
$ 277,862 $ - $ 13,023 $ 22,578
6,603 -
- 13,023
1,077,724
1,084,327 13,023 -
277,862 (1,084,327) 22,578
277,862 (1,084,327) - 22,578
$ 277,862 $ - $ 13,023 $ 22,578
72
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008 (Continued)
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
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
Special Revenue Funds
Lighting
Indian and
Gaming Landscape RCTC Quimby
$ 143,288 $ - $ - $ 10,300,538
671 - - 39,380
31,704 318,391
$ 143,959 $ 31,704 $ 318,391 $ 10,339,918
143,959
143,959
318,391
318,391
636,782
31,704 (318,391) 10,339,918
31,704 (318,391) 10,339,918
Total Liabilities and Fund Balances $ 143,959 $ 31,704 $ 318,391 $ 10,339,918
73
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Assets:
Pooled rash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
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
Special Revenue Funds
Arts in
Public Public South Coast
Safety Places Air Quality AB 939
$ 18,333 $ 1,082,829 $ 252,514 $ 1,426,332
70 4,145
939 5,412
$ 18,403 $ 1,086,974 $ 253,453 $ 1,431,744
20,264 $ - $
20,264
18,403
1,066,710
253,453
1,431,744
18,403
1,066,710
253,453
1,431,744
$ 18,403
$ 1,086,974 $
253,453
$ 1,431,744
74
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2008 (Continued)
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
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
Special Revenue Funds
Low/Moderate
CV Violent
Justice
Income Housing
Development
Crime
Assistance
PA No. 1
Agreement
Task Force
Grant
$ 3,411,134
$ 193,935
$ 150,477
$
11,165
-
191
3,682,658
-
-
7,724
740
581
1,949
-
-
341,447
9,337
$ 7,456,077
$ 194,676
$ 160,586
$
$ 45.055
$ -
$ 2,724
$
14,732
194,675
-
1,606,595
-
2,834
1,669,216
194,675
2,724
1,949
2,076,063 -
3,708,849
157,862
Total Fund Balances 5,786,861 - 157,862
Total Liabilities and Fund Balances $ 7,456,077 $ 194,675 $ 160,586 $
75
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Special
Revenue
Funds Capital Projects Funds
2004
Proposition 18 Low/Mod
Assets: Fund Bond Infrastructure Transportation
Pooled cash and investments $ 617.674 $ - $ 399,119 $ 7,862,686
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
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
2,795 1,301 30,713
- 24,128,318 - _
$ 620,469 $ 24,128,318 $ 400,420 $ 7,893,399
620,469
5,684,047
620,469 5,684,047
18,444,271 400,420 7,893,399
- 18,444,271 400,420 7,893,399
$ 620,469 $ 24,128,318 $ 400,420 $ 7,893,399
76
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2008 (Continued)
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Capital Projects Funds
Parks and Library Community Street
Recreation Development Center Facility
$ - $ - $ 1,126,621 $ 311.965
4,307 1,207
$ $ $ 1,130,928 $ 313,172
1,513,574 1,949,006
1,513,574 1,949,006 -
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds - -
Unreserved:
Undesignated (1,513,574) (1,949,006) 1,130,928 313,172
Total Fund Balances (1,513,574) (1,949,006) 1,130,928 313,172
Total Liabilities and Fund Balances $ $ - $ 1,130,928 $ 313,172
77
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
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
Deposits payable
Deferred revenues
Unearned revenue
Due to other governments
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
Debt Service
Capital Projects Funds Funds
Redevelopment
Park Fire Agency Financing
Facility Facility PA No. 2 Authority
$ 97,291 $ - $ 1,355,599 $ 10,138
50,400
373 5,368
- 608 655
312,000
939,634
$ 97,664 $ $ 2,663,609 $ 10,793
9,550
27,835
939,634
939,634 37,385
608
939,634
655
97,664 (939,634) 1,685,982 10,138
97,664 (939,634) 2,626,224 10,793
$ 97,664 $ - $ 2,663,609 $ 10,793
78
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Total
Governmental
Funds
Assets:
Pooled rash and investments
$ 28,809,909
Receivables:
Accounts
61,756
Notes
3,682,658
Accrued interest
106,328
Prepaid costs
3,212
Due from other governments
964,304
Due from other funds
312,000
Advances to other funds
939,634
Restricted assets:
Cash and investments with fiscal agents
24,128,318
Total Assets
$ 59,008,119
Liabilities and Fund Balances:
Liabilities:
$ 77,593
Accounts payable
Deposits payable
237,242
Deferred revenues
1,924,986
Unearned revenue
764,428
Due to other governments
9,437
Due to other funds
6,015,461
Advances from other funds
5,479,938
Total Liabilities
14,509,085
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
3,212
Reserved for notes receivable
2,076,063
Reserved for advances to other funds
939,634
Unreserved:
Undesignated
41,480,125
Total Fund Balances
44,499,034
Total Liabilities and Fund Balances
$ 59,008,119
79
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30. 2008
Revenues:
Taxes
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Contributions
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
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
Fund Balances, End of Year
Special Revenue Funds
State
Gas Federal
Tax Library Assistance SLEBG
737,567 2,941,954 715,630 103.253
3,321 3,487 - 2,901
- 26,500 -
740,888 2,971,941 715,630 106,154
- 2,191,554 -
575,271 -
575,271 2,191,554
165,617
780,387
715,630 106,154
40,000
-
- -
(22)
(3,346,142)
(715,630) (101,188)
39,978
(3,346,142)
(715,630) (101,188)
205,595
(2,565,755)
4,966
72,267
1,481,428
17,612
$ 277,862
$ (1,084,327)
$ $ 22,578
GI Y l C�i� �iLl l l;<t fit
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008 (Continued)
Revenues:
Taxes
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Contributions
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
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
Fund Balances, End of Year
Special Revenue Funds
Lighting
Indian and
Gaming Landscape RCTC Quimby
168,155
909,229 -
- 86,559
4,300
404,835
299,326
168,155 909,229 86,559 708,461
32,000
910,136 -
910,136 - 32,000
168,155 (907) 86,559 676,461
(168,155) - (404,950) (2,569)
(168,155) (404,950) (2,569)
(907) (318,391) 673,892
32,611 - 9,666,026
$ $ 31,704 $ (318,391) $10,339,918
81
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008
Revenues:
Taxes
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Contributions
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
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
Fund Balances, End of Year
Special Revenue Funds
Arts in
Public
Public
South Coast
Safety
Places
Air Quality
AB 939
48,223
-
-
-
110.900
710
42,626
9,414
57,583
-
155,944
710
198,570
57,637
168,483
- 16,119 149,636
- 198,781 - -
198,781 16,119 149,636
710 (211) 41,518 18,847
2,000
2,000
2,710 (211) 41,518 18,847
15,693 1,066, 921 211,935 1,412,897
$ 18,403 $ 1,066,710 $ 253,453 $ 1,431,744
82
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008 (Continued)
Special Revenue Funds
Low/Moderate
CV Violent
Justice
Income Housing
Development Crime
Assistance
PA No. 1
Agreement Task Force
Grant
Revenues:
Taxes
$ 10,869,078
$ - $ -
$ -
Assessments
-
-
Intergovernmental
-
70,961
10,607
Contribution from property owners
275,665
- -
-
Charges for services
-
-
Use of money and property
(19,240)
- 5,720
-
Contributions
-
Developer participation
-
Loan repayments
471,811
- -
-
Total Revenues
11,597,314
- 76,681
10,607
Expenditures:
Current:
General government -
Public safety - 39,332
Planning and development 7,405,006 - -
Community services - - -
Public works - - -
Debt service,
Principal retirement - - -
Interest and fiscal charges - - -
Total Expenditures
7,405,006
- 39,332 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures
4,192,308
- 37,349 10,607
Other Financing Sources (Uses):
Transfers in
313,156
- - -
Transfers out
(4,557,990)
- - (10,607)
Proceeds from sale of capital assets
158,061
- - -
Total Other Financing Sources
(Uses)
(4,086,773)
- - (10,607)
Net Change in Fund Balances
105,535
- 37,349 -
Fund Balances, Beginning of Year
5,681,326
- 120,513
Fund Balances, End of Year
$ 5,786,861 $
- $ 157,862 $
1-M
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008
Special
Revenue
Funds Capital Projects Funds
Revenues:
Taxes
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Contributions
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Debt service:
Principal retirement
interest and fiscal charges
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
Fund Balances, End of Year
2004
Proposition 1B Low/Mod
Fund Bond Infrastructure Transportation
40,468
12,644 1,602,168 14,372 309,869
- - - 1,189,155
53,112 1,602,168 14,372 1,499,024
- 147,200
147,200
53,112 1,454,968 14,372 1,499,024
(53,112) (21,294,034) (127,645) (779,162)
(53,112) (21,294,034) (127,645) (779,162)
(19,839,066) (113,273) 719,862
38,283,337 513,693 7,173,537
$ $ 18,444,271 $ 400,420 $ 7,893,399
84
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008 (Continued)
Revenues:
Taxes
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Contributions
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
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
Fund Balances, End of Year
Capital Projects Funds
Parks and Library Community Street
Recreation Development Center Facility
43,926 12,412
418,293 164.896 31,619 42,300
418,293 164,896 75,545 54,712
78,425 88,471 - -
78,425 88,471 - -
339,868 76,425 75,545 54,712
(54,029)
(54,029)
339,868 76,425 75,545 683
(1,853,442) (2,025,431) 1,065,383 312,489
$ (1,513,574) $ (1,949,006) $ 1,130,928 $ 313,172
85
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008
Revenues:
Taxes
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Contributions
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Debt service:
Principal retirement
Interest and fiscal charges
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
Fund Balances, End of Year
Debt Service
Capital Projects Funds Funds
Redevelopment
Park Fire Agency Financing
Facility Facility PA No. 2 Authority
675,880
- 9,641
3,662 - 105,906 159
10,559 47,882
14,221 47,882 105,906 685,680
- - - 9,641
- - 157,238 -
42,845
1,930.000
4,672,686
42,845 157,238 6,612,327
14,221 5,037 (51,332) (5,926,647)
312,000 5,926,806
(324,792) -
(12,792) 5,926,806
14,221 5,037 (64,124) 159
83,443 (944,671) 2,690,348 10,634
$ 97,664 $ (939,634) $ 2,626,224 $ 10,793
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2008
Total
Governmental
Funds
Revenues:
$ 10,869,078
Taxes
Assessments
909,229
Intergovernmental
4,927,677
Contribution from property owners
951,545
Charges for services
120,541
Use of money and property
2,616.475
Contributions
26,500
Developer participation
2,359,974
Loan repayments
471,811
Total Revenues
23,252,830
Expenditures:
Current:
General government
9,641
Public safety
39,332
Planning and development
7,875,199
Community services
2,422,335
Public works
1,485,407
Debt service:
1,930,000
Principal retirement
4,882,427
Interest and fiscal charges
Total Expenditures
18,644,341
Excess (Deficiency) of Revenues
Over (Under) Expenditures
4,608,489
Other Financing Sources (Uses):
Transfers in
6,593,962
Transfers out
(31,940,027)
Proceeds from sale of capital assets
158,061
Total Other Financing Sources
(Uses)
(25,188,004)
Net Change in Fund Balances
(20,579,515)
Fund Balances, Beginning of Year
65,078,549
Fund Balances, End of Year
$ 44,499,034
M.
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Transfers from other funds
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)
$ 72,267
$ 72,267
$ 72,267
$ -
743,100
743,100
737,567
(5,533)
13,100
13,100
3,321
(9,779)
40,000
40,000
828,467
828,467
853,155
24,688
575,271
575,271
575,271
-
-
1,489
22
1,467
575,271
576,760
575,293
1,467
$ 253,196
$ 251,707
$ 277,862
$ 26,155
m
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (inflows):
Intergovernmental
Charges for services
Use of money and property
Contributions
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Community services
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 1,481,428
$ 1,481,428
$ 1.481,428
$ -
2,000,700
2,000,700
2,941,954
941,254
45,000
45,000
3,487
(41,513)
-
26,500
26,500
-
3,527,128
3,553,628
4,453,369
899,741
2,096,529
2,096,529
2,191,554
(95,025)
500,000
3,346,281
3,346,142
139
2,596,529
5,442,810
5,537,696
(94,886)
$ 930,599
$ (1,889,182)
$(1,084,327)
$ 804,855
m
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULES
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Transfers from other funds
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)
164,800
706,276
715,630
9,354
164,800
706,276
715,630
9,354
190,000
706,276
715,630
(9,354)
190,000
706,276
715,630
(9,354)
$ (25,200) $
-
$ -
$
m
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Transfers from other funds
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)
$ 17,612 $ 17,612 $ 17,612 $ -
100,000 100,000 103,253 3,253
400 400 2,901 2,501
118,012 118,012 123,766 5,754
100,400 100,400 101,188 (788)
100,400 100,400 101,188 (788)
Budgetary Fund Balance, June 30 $ 17,612 $ 17,612 $ 22,578 $ 4,966
91
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
BudgetAmounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ _ $ _ $ $
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
177,250 177,250 168,155 (9,095)
13,500 13,500 (13,500)
190,750 190,750 168,155 (22,595)
201,142 201,142 168,155 32,987
201,142 201,142 168,155 32,987
$ (10,392) $ - $ 10,392
92
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPE
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Assessments
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 32,611 $ 32,611 $ 32,611 $ -
916,500 916,500 909,229 (7,271)
949,111 949,111 941,840 (7,271)
916,500 916,500 910,136 6,364
916,500 916,600 910,136 6,364
Budgetary Fund Balance, June 30 $ 32,611 $ 32,611 $ 31,704 $ (907)
93
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
RCTC
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ _ $ _ $ _ $ _
Resources (Inflows):
Intergovernmental
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
2,327,400 2,292,807 86,559 (2,206,248)
2,327,400 2,292,807 86,559 (2,206,248)
4,149,826 404,950 3.744,876
4,149,826 404,950 3,744,876
$ 2,327,400 $ (1,857,019) $ (318,3911 $ 1,538,628
94
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to appropriation (outflow):
Community services
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)
$ 9,666,026
$ 9,666,026
$ 9,666,026
$ -
_
-
4,300
4,300
422,000
422,000
404,835
(17,165)
1,016,000
1,016,000
299,326
(716,674)
11,104,026
11,104,026
10,374,487
(729,539)
8,540,100 8,572,100
8,540,100 8,572,100
32,000
(32,000)
2,569
8,569,531
34,569
8,537,531
$ 2,563,926 $ 2,531,926 $ 10,339,918 $ 7,807,992
P&I
CITY OF LA OUINTA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30, 2008
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
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 15,693
$ 15,693
$ 15,693
$ -
2,000
2,000
710
(1,290)
600
600
2,000
1,400
18,293
18,293
18,403
110
2,000
2,000
-
2,000
2,000
2,000
-
2,000
$ 16,293
$ 16,293
$ 18,403
$ 2,110
CITY OF LA QUINTA
BUDGET COMPARISON SCHEDULE
ARTS IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts available for appropriation
Charges to Appropriation (Outflow):
Community services
Transfers to other funds
Total Charges to Appropriations
Budget Amounts
Original Final
$1,066,921 $ 1,066,921
16,400
40,000
97,500
97,500
1,180,821
1,204,421
488,450
488,450
200,000
400,000
688,450
888,450
Actual
Amounts
$ 1,066,921
42,626
155,944
1,265,491
Variance with
Final Budget
Positive
(Negative)
2,626
58,444
61,070
198,781 289,669
- 400,000
198,781 689,669
Budgetary Fund Balance, June 30 $ 492,371 $ 315,971 $ 1,066,710 $ 750,739
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2008
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
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 211,935 $
211,935
$ 211,935
$ -
47,700
47,700
48,223
523
9,200
9,200
9,414
214
268,835
268,835
269,572
737
26,600
26,600
16,119
10,481
26,600
26,600
16,119
10,481
$ 242,235 $
242,235
$ 253,453
$ 11,218
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2008
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
Total Charges to Appropriations
Budget Amounts
Original Final
$ 1,412,897 $ 1,412,897
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,412,897 $
- 110,900 110,900 -
54,800 54,800 57,583 2,783
1,467,697 1,578,597 1,581,380 2,783
202,500 238,500 149,636 88,864
202,500 238,500 149,636 88,864
Budgetary Fund Balance, June 30 $1,266,197 $ 1,340,097 $ 1,431,744 $ 91,647
BE
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Contributions from property owners
Use of money and property
Proceeds from sale of capital assets
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
$ 5,681,326 $ 5,681,326
10.600,600
252,000
404,800
150,000
17,088,726
11,166,237
252,000
404,800
150,000
125,000
354,000
313,156
18,446,519
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 5,681,326 $
10,869,078
(297,159)
275,665
23,665
(19,240)
(424,040)
158,061
8,061
-
(125,000)
471,811 117,811
313,156 -
17,749,857 (696,662)
1,616,335 12,204,797 7,405,006 4,799,791
4,450,261 4,557,990 4,557,990 -
6,066,596 16,762,787 11,962,996 4,799,791
$ 11,022,130 $ 1,683,732 $ 5,786,861 $ 4,103,129
100
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CV VIOLENT CRIME TASK FORCE
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary fund balance, July 1
$ 120,513
$ 120,513
$ 120,513
$
Resources (inflows):
Intergovernmental
98,500
141,000
70,961
(70,039)
Use of money and property
3,000
5,000
5,720
720
Amounts available for appropriation
222,013
266,513
197,194
(69,319)
Charges to appropriation (outflow):
Public safety
57,100
57,100
39,332
17,768
Total Charges to Appropriations
67,100
57,100
39,332
17,768
Budgetary fund balance, June 30
$ 164,913
$ 209,413
$ 157,862
$ (51,651)
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
JUSTICE ASSISTANCE GRANT
YEAR ENDED JUNE 30, 2008
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)
10,607 10,607 10,607
10,607 10,607 10,607
10,607 10,607 10,607
10,607 10,607 10,607
102
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION I FUND
YEAR ENDED JUNE X 2008
Budgetary fund balance, July 1
Resources (inflows):
Intergovernmental
Invest Income
Amounts available for appropriation
Charges to appropriation (outflow):
Transfers to other funds
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
660,937 40,468 (620,469)
- 12,644 12,644
660,937 53,112 (607,825)
660,937 53,112 607,825
660,937 53,112 607,825
Budgetary fund balance, June 30 $ $ $ $
103
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (inflows):
Intergovernmental
Use of money and property
Developer fees
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)
8,545,600 12,159,595 1,311,904 (10,847,691)
430,000
4,733,867
3,618,748
(1,115,119)
61,298,197
136,966,696
40,624,429
(96,342,267)
70,273,797
153,860,158
45,555,081
(108,305,077)
70,080,044 153,666,405 45,266,627 108,399,778
50,000 50,000 193,753 (143,753)
143,753 143,753 54,701 89,052
70,273,797 153,860,158 45,555,081 108,305,077
104
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 1 - CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Other financing sources
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
Actual
Original
Final
Amounts
$ 20,940,368
$ 20,940,368
$ 20,940,368
537,900
1,087,900
1,411,698
-
-
201,379
3,894.600
-
-
25,000,000
25,180,355
25,180,355
50,372,868
47,208,623
47,733,800
Variance with
Final Budget
Positive
(Negative)
323,798
201,379
525,177
1,096,359
1,338,112
986,428
351,684
46,714,237
63,171,468
3,623,184
59,548,284
47,810,596
64,609,580
4,609,612
59,899,968
$ 2,562,272
$ (17,300,957)
$ 43,124,188
$ 60,425,145
105
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
2004 LOWIMOD BOND
YEAR ENDED JUNE 30, 2008
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
Budget Amounts
Original Final
$38,283.337 $ 38,283,337
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 38,283,337 $
2,000,000 2,000,000
1,602,168
(397,832)
40,283,337 40,283,337
39,885,505
(397,832)
- 3,200,000
147,200
3,052,800
33,684,236
21,294.034
12,390,202
36,884,236
21,441,234
15,443,002
$40,283,337 $ 3,399,101 $ 18,444,271 $ 15,045,170
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INFRASTRUCTURE
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 513,693
$ 513,693
$ 513,693
$ -
Resources (Inflows):
Use of money and property
6,300
12,000
14,372
2,372
Amounts Available for Appropriation
519,993
525,693
528,065
2,372
Charges to Appropriation (Outflow):
Public works
-
-
-
-
Transfers to other funds
525,221
127,645
397,576
Total Charges to Appropriations
525,221
127,645
397,576
Budgetary Fund Balance, June 30
$ 519,993
$ 472
$ 400,420
$ 399,948
107
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2008
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
BudgetAmounts Actual Positive
Original Final Amounts (Negative)
$ 7,173,537 $ 7,173.537 $ 7,173,537 $
70,200
225,000
309,869
84,869
1,268,900
1,000,000
1,189,155
189,155
8,512,637
8,398,537
8,672,561
274,024
2,566,400
7,753,569
779,162
6,974,407
2,566,400
7,753,569
779,162
6,974,407
$ 5,946,237 $ 644,968 $ 7,893,399 $ 7,248,431
108
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,853.442)
$ (1,853,442)
$(1,853,442)
$ -
Resources (Inflows):
Developer fees
334,500
334,500
418,293
83,793
Amounts Available for Appropriation
(1,518,942)
(1,518,942)
(1,435,149)
83,793
Charges to Appropriation (Outflow):
Interest and fiscal charges
100,000
78,425
21,575
Total Charges to Appropriations
100,000
78,425
21,575
Budgetary Fund Balance, June 30
$ (1,518,942)
$ (1,618,942)
$(1,513,574)
$ 105,368
109
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Public works
Debt service:
Interest and fiscal charges
Transfers to other funds
Total Charges to Appropriations
Budget Amounts
Original Final
$ (3,031,324) $ (3,031,324)
68,400 -
194,700 194,700
(2,768,224) (2,836,624)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$(3,031,324) $
357,890 163,190
(2,673,434) 163,190
202,764 202,764 202,764
- - 2,892 (2,892)
200,000
- 6,240,662
202,764 6,643,426
273,248 (73,248)
6.240,662
6,719,566 (76,140)
Budgetary Fund Balance, June 30 $ (2,970,988) $ (9,480,050) $(9,393,000) $ 87,050
110
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$1,055,383 $ 1,055,383
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,055,383 $
46,900
46,900
43,926
(2,974)
28,000
28,000
31,619
3,619
1,130,283
1,130,283
1,130,928
645
$1,130,283
$ 1,130,283
$ 1,130,928 $
645
111
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Transfers from other funds
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)
$ 312,489 $ 312,489 $ 312,489 $
11,200
11,200
12,412
1,212
44,100
44,100
42,300
(1,800)
28,886
28,886
(28,886)
396,675
396,675
367,201
(29,474)
345,000
385,825
54,029
331,796
345,000
385,825
54,029
331,796
$ 51,675
$ 10,850
$ 313,172
$ 302,322
112
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2008
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)
$ 83,443
$ 83,443
$ 83,443
$ -
3,600
3,600
3,662
62
8,000
8,000
10,559
2,559
95,043
95,043
97,664
2,621
28,886 28,886
28,886 28,886
28,886
28,886
Budgetary Fund Balance, June 30 $ 66,157 $ 66,167 $ 97,664 $ 31,507
113
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ (944,671) $ (944,671)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ (944,671) $
27,000 27,000 47,882 20,882
(917,671) (917,671) (896,789) 20,882
35,000 42,845 (7,845)
35,000 42,845 (7,845)
$ (917,671) $ (952,671) $ (939,634) $ 13,037
114
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 2 - CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2008
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
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
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 2,690,348
$ 2,690,348
$ 2,690,348
$ -
58,900
80,000
105,906
25,906
312,000
312,000
2,749,248
3,082,348
3,108,264
25,906
149,632
268,085
157,238
110,847
275,000
473,004
324,792
148,212
424,632
741,089
482,030
259,059
$ 2,324,616
$ 2,341,259
$ 2,626,224
$ 284,965
115
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO, I - DEBT SERVICE
YEAR ENDED JUNE 30, 2008
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
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 21,388,244 $ 21,388,244 $ 21,388,244 $
42,638,700
896,100
4,450,261
69,373,305
457,300
3.514,579
8,520,553
22,808,012
28,970,960
64,271,404
44,664,949
43,476,312
(1,188,637)
596,100
698,250
102,150
4,557,990
4,557,990
-
71,207,283
70,120,796
(1,086,487)
457,300
386,073
71,227
3,565,558
3,565,558
-
8,520,553
8,528,282
(7,729)
23,901,662
23,585,426
316,236
28,970,960
28,970,960
-
65,416,033
65,036,299
379,734
Budgetary Fund Balance, June 30 $ 5,101,901 $ 5,791,250 $ 5,084,497 $ (706,753►
116
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 2 - DEBT SERVICE
YEAR ENDED JUNE 30, 2008
Variance with
Final Budget
BudgetAmounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,910,342
$ 2,910,342
$ 2,910,342
$ -
Resources (Inflows):
Taxes
22,923,100
22,806,640
23,087,750
281,110
Use of money and property
573,200
300,000
477,355
177,355
Transfers from other funds
1,955,846
1,955,846
1,955,846
-
Amounts Available for Appropriation
28,362,488
27,972,828
28,431,293
458,465
Charges to Appropriation (Outflow):
General government
176,100
176,100
202.081
(25,981)
Principal
110,000
260,000
260,000
Interest and fiscal charges
1,310,135
1,660,135
1,686,050
(25,915)
Pass through agreement payments
18,688,406
18,538,406
19,403,597
(865,191)
Transfers to other funds
1,955,846
11.334,812
11,334,812
Total Charges to Appropriations
22,240,487
31,969,453
32,886,540
(917,087)
Budgetary Fund Balance, June 30
$ 6,122,001
$ (3,996,625)
$ (4,455,247)
$ (458,622)
117
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY - DEBT SERVICE
YEAR ENDED JUNE 30, 2008
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)
$ 10,634
$ 10,634
$ 10,634
$ -
675,880
675,880
675.880
15,000
15,000
9,641
(5,359)
-
-
159
159
5,926,806
5,926,806
5,926,806
-
6,628,320
6,628,320
6,623,120
(5,200)
15,800
15,800
9,641
6,159
1,930,000
1,930,000
1.930,000
-
4,672,686
4,672.686
4,672,686
6,618,486
6,618,486
6,612,327
6,159
9,834 $ 10,793 $ 959
118
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to
departments within the City. Costs of materials and services used are accumulated in this fund
and charged to the user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund — used to account for the ultimate replacement of City owned
and operated vehicles and equipment
Information Technology Fund — used to account for the purchase and replacement of
information systems.
Park Equipment and Facilities Fund — used to account for the purchase and replacement of City
owned park facility infrastructure.
119
CITY OF LA QUINTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2008
Assets:
Current:
Cash and investments
Receivables:
Interest
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
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
Park
Equipment Information Equipment
Replacement Technology and Facility Total
$ 2,129.604 $ 1,102,955 $ 1,295,035 $ 4,527,594
9,228
4,250
5,011
18,489
2,138,832
1,107,205
1,300,046
4,546,083
1,282,411
467,368
14,817,286
16,567,065
1,282,411
467,368
14,817,286
16,567,065
$ 3,421,243
$ 1,574,573
$16,117,332
$21,113,148
$ 12,819 $ 12,395 $ 53 $ 25,267
2,331 - 2,331
12,819 14,726 53 27,598
3,928 3,928
3,928 3,928
12,819 18,654 53 31,526
1,282,411 467,368 14,817,286 16,567,065
2,126,013 1,088.551 1,299,993 4,514,557
3,408,424 1,555,919 16,117,279 21,081,622
$ 3,421,243 $ 1,574,573 $ 16,117,332 $ 21,113,148
120
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2008
Park
Equipment
Information
Equipment
Replacement
Technology
and Facility
Totals
Operating Revenues:
Sales and service charges
$ 590,885
$ 525,026
$ 391,190
$ 1,507,101
Total Operating Revenues
590,885
526,026
391,190
1,507,101
Operating Expenses:
Salaries and benefits
-
97,953
-
97,953
Fuel and oil
94,687
-
-
94,687
Maintenance and parts
126,622
-
-
126,622
Contract services
7,844
59,390
17,445
84,679
Software and supplies
-
126,002
-
126,002
Depreciation
262,598
86,085
415,108
763,791
Other
45,054
16,544
-
61,598
Total Operating Expenses
536,805
385,974
432,553
1,355,332
Operating Income (Loss)
54,080
139,052
(41,363)
151,769
Non -Operating Revenues (Expenses):
Interest revenue
118,833
44,737
49,935
213.505
Gain on disposition of assets
5,985
-
5,985
Total Non -Operating Revenues
124,818
44,737
49,935
219,490
Income Before Contributions and Transfers
178,898
183,789
8,572
371,259
Capital contributions
306,804
74,247
136,413
517,464
Transfers in
-
-
-
-
Transfers out
(1,262,074)
-
-
(1,262,074)
Change in Net Assets
(776,372)
258,036
144,985
(373,351)
Net Assets:
Beginning of Year
4,184,796
1,297,883
15,972,294
21,454,973
Change in Net Assets
(776,372)
258,036
144,985
(373,351)
End of Fiscal Year
$ 3,408,424
$ 1,555,919
$16,117,279
$21,081,622
121
CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2008
Park
Equipment Information
Equipment
Cash Flows from Operating Activities:
Replacement - Technology
- and Facility
Totals
Cash received from customers and users
$ 590,885 $ 525,026
$ 391,190
$ 1,507,101
Cash paid to supplies for good and services
Cash paid to employees for services
(275,276) (202,050)
(17,392)
(494,718)
- (97,590)
-
(97,590)
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers out
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Insurance proceeds
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:
Depredation
(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
315,609
225,386
373,798
914,793
(1,262,074)
-
-
(1,262,074)
(1,262,074)
-
-
(1,262,074)
(327,033)
-
-
(327,033)
2,100
-
-
2,100
7,840
-
-
7,840
(317,093)
-
a
(317,093)
123,659
44,268
48,747
216,674
123,659
44,268
48,747
216,674
(1,139,899)
269,654
422,545
(447,700)
3,269,503
833,301
872,490
4,975,294
$ 2,129,604 $
1,102,956
$ 1,295,035
$ 4,527,594
$ 54,080 $ 139,052 $ (41,363) $ 151,769
262,598 86,085 415,108 763,791
- 330 - 330
(1,069) (445) 53 (1,461)
604 - 604
(240) - (240)
261,529 86,334 415,161 763,024
$ 315,609 $ 225,386 $ 373,798 $ 914,793
$ 306,804 $ 74,247 $ 136,413 $ 517,464
122
AGENCYFUNDS
Agency funds are used to account for assets held by the City as an agent for an individual,
private organizations and other governmental units. The agency funds and their purposes are
as follows:
The City of La Quinta has the following agency funds:
Assessment District No. 92-1 97-1, 2001-1 — To account for assessments paid to the City for
debt service payments on bond issues used to finance sewer improvements.
123
CITY OF LA QUINTA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2008
Assessment
Assessment
Assessment
District
District
District
Assets:
No.92-1
No.97-1
No.2001-1
Totals
Cash and investments
$
$
151,035
$ 458,129
$
609,164
Receivables:
Taxes
Interest
1,567
20.755
22,322
554
1,695
2,249
Total Assets
$
$
153,156
$ 480,579
$
633,735
Liabilities:
Deposits
$
$
153,156
$ 480,579
$
633,735
Total Liabilities
$ -
$
153,156
$ 480,579
$
633,735
124
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2008
Balance
Balance
July 1, 2007
Additions
Deductions
June 30, 2008
Assessment District No. 92-1
Assets:
Cash and investments
$
318,318
$
15,406
$
333,724
$ -
Receivables:
Taxes
10,583
-
10,583
Interest
1,320
-
1,320
Total Assets
$
330,221
$
15,406
$
345,627
$
Liabilities:
Deposits
$
330,221
$
5,058
$
335,279
$
Total Liabilities
$
330,221
$
5,058
$
335,279
$
Assessment District No. 97-1
Assets:
Cash and investments
$
142,572
$
67,852
$
59,389
$
151,035
Receivables:
Taxes
2,711
1,567
2,711
1,567
Interest
580
553
579
554
Total Assets
$
145,863
$
69,972
$
62,679
$
153,156
Liabilities:
Deposits
$
145,863
$
66,840
$
59,547
$
153,156
Total Liabilities
$
145,863
$
66,840
$
59,547
$
153,156
Assessment District No. 2001-1
Assets:
Cash and investments
$
447,592
$
210,566
$
200,029
$
458.129
Receivables:
Taxes
10,023
20,755
10,023
20,755
Interest
1,836
1,695
1,836
1,695
Total Assets
$
459,451
$
233,016
$
211,888
$
480,579
Liabilities:
Deposits
$
459,451
$
222,405
$
201,277
$
480,579
Total Liabilities
$
459,451
$
222,405
$
201,277
$
480,579
125
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2008
Total - All Anencv Funds
Assets:
Cash and investments
Receivables:
Accounts
Interest
Total Assets
Liabilities:
Deposits
Total Liabilities
Balance
Balance
July 1, 2007
Additions
Deductions
June 30, 2008
$
908,482
$
293,824
$ 593,142
$
609,164
23,317
22,322
23,317
22,322
3,736
2,248
3,735
2,249
$
935,535
$
318,394
$ 620,194
$
633,735
$
935.535
$
294,303
$ 596,103
$
633,735
$
935,535
$
294,303
$ 596,103
$
633,735
126
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
Financial Trends
Page
These schedules contain trend information to help the reader
understand how the government's financial performance and
well-being have changed over time.
Revenue Capacity
These schedules obtain information to help the reader assess
the government's most significant local revenue source, the
property tax.
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.
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.
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
and the activities it performs.
127
CITY OF LA QUINTA
Net Assets by Component
Last Eight Fiscal Years
(accrual basis of accounting)
TABLE
GOvemmental activities
2001
2002
2003
2004
2005
2006
2007
2008
Invested to capita asuts,
net of related debt
Restricted
$ 217,419,724
195,474,945
225,818,022
249,059,500
233,361,129
253,559,117
300,220,033
343,019.328
Unrestncted
45,438,930
74,156,691
40,038,313
44,415,966
43,421857
65,159,623
49,277,895
86041,189
30698,622
43,025,999
48,290,000
45,169328
60,361071
96,1293745
106,939,577
79642,102
Total governmental activities net assets
S 293,557,276
312,657,635
314,146,335
338,644,794
337,t44,057
404,849,116
456,437,505
508,702,619
Business -type activities:
lnvested in capital assets,
net of related debt
Restricted
S -
-
-
-
-
41,300,846
42,075,172
42692,025
42,778,015
Unrestricted
-
-
-
-
-
(626,658)
(1,665646)
(238S 462)
(3109524)
Total business -type activities tie[ assets
-
-
-
-
40,674,188
40,409,526
40,306,563
39,668,491
Primary government'
Invested in capdal assets,
net of related debt
Restricted
S 217,419,724
195,474,945
225,818,022
249,059,500
274.661,975
295,634,289
342,912,058
385,797,343
Unrestricted
45,438,930
74,156,691
40,038,313
44,415966
43,421.857
65,159,623
49,277,895
86,041,189
30,698,622
43,025,999
48,290,000
45,169,328
59,734,413
84,463,730
104,554,115
76,532,578
TOW primary government net assets
$ 293,557,276
312,657,635
314,146,335
338,644,794
377,818,245
445,257,642
496,744,068
548,371,110
The Cry off- QamM Implemented GAS6 34 for the facal year ended June 30,
2001. Information prior to the Implementation ofGASB 34 is not available.
Source Cuyoflz Qumm
128
T"0 2
CT'OFLAQB
A
cb o ,.Na.
Iaa E,81a Fnml
Y.
(a wlbacs afaxvuvm0l
F I Yw
E001
TIOE
2W3
EWJ
2005
2006
EW]
2ws
co.mmmw awn6a
G<aN gavnoen
f 3,1I6699
)Si1,532
3,201,16E
J,2%,468
J,395,875
6,EN,IW
73
6.9A036
%61¢ytu3
5,]]66M
1,511,31E
10,256,16)
9,M5,23J
9,IIS,244
IE,tt{IW
Il,i];016
Covenmy xrvuu
9t0,ee1
1,311,93E
1,3J],WS
L3E1,8E5
1,U6971
1.151,141
LI]?NI
JR.915
1,E99a20
5,1
%amwxtldevebpwn
6,H6,998
19,003,719
l,W3013
5,]Sl,EJ9
S,N
?516,510
A'.
%N¢wn4s
5,968,91E
6,41,1E5
6,JH,259
6,W1011
335
IO,W6,6%
11,ID858
11,091,II6
WT.[boBJamh91
5,86161E
7,791,
8,555,]59
9 150
5,105381
4326505E
15,10,OH
1316)t12
TmlBosvmnnal annaocayrnx[
2],84l,]49
11,311,1]!
174
1,3U311
J119?JIE
19 E1;UJ9
l]IN Mt
16-29,054
16,129,05E
56,119,)11
U1} 01
EE,166,050
Bmimorypeawvw
Gu11('
1,81329E
4.5�J1.
45201])
4,161581
Tgalhrurcssiype acusa¢erycw
1,017,291
4523J.
{SM,I73
!]�61,581
Talalp gOwnrcn eryures
EI NI749
33,511174
17 t91112
19112 W9
0.M 085
W652,M
61,239,M
92,927,631
Fagamrtvcnv
Gavnxanalawnoei
C8xm l9r3emm
GacN BMUTGY
233,89E
E98,]i9
11),621
43566E
111,BJ9
60,510
129
802
PWlc sally
M,434
Z,123,w
2,51J,Mi
3.911,N6
1,252,62E
1251,501
I,428,M6
E,659,515
E030192
ssmm
10.033
110,863
252,6]]
131,50E
R8,616
JBI,WS
134,09E
Pwn aMhvekprcn
P
]09,03)
316,073
611,8W
M2"1
]5{930
IBll6]6
169,1%
11121E
w
IMbcyohs
1,09,91E
1,116,1]3
594,228
1,39J,E31
1,81399E
2,815,10E
;,7%J95
19W,U1
ml wdnbnmrs
1,601.116
I,6WE55
1,lw,0)1
1,399511E
1,59023
1,03,➢9
).]%!95
59J5.6N
C,wgars
Caplal panlaofwMbWw¢
Ii 115,M1
IIyE ILI
51�w5 �
1E,090,10
18,591,13E
3,W3,..
1)�918,901
17,COI,III
50.090.J19
Taal p�wmmOul azwwa
%o®vamm'S
EI lI5.119
Ie Eli Jli
12,5851]EO
20961,030
29,211,92E
1],]3E,131
E6.918,S1i
60,M160
Cmrgs brsenins
GyrCamfe
1091,816
11$0,I29
J,SiO,)JB
3814E33
Ca w M..Mcmvnbuuwas
-
352.697
Td Mmixss'rypcawrwa'
Pa®ammem¢s
1-11816
11N lE8lEB
1540748
aW,9M
Tnalpmwy pnxmoen
pogammsmc
21,113,%9
18,El2,434
12.58330
20,%10N1
30325,)5]
5085;039
IO 459281
4,61056E
(wwaed)
(wmudl
(wnmMl
(commro8l
(co�w,uu9
(wmncf)
(romwml
l��
N.aerxmo (expeaxsl
fioramwlvgrvma
(6,5266W)
(1319JW)
(11911,952)
('Um"59)
11{I50,8]JI
I,W1,011
(E9,801,176)
(2l702,4011
Buweu-IyP'acunua
(185,4551
(1402419)
(979,425)
(5.,"l1
Tdal atmwes (espemx)
(65E66W)
(15299A01
(1J9169SE)
18( ?b.9591
(119363281
2W,659
(N'm W11
(2829)0581
f iexN aeaerus xE Mer clenges ,O rcs asvu
Gmesmenalawnces
T s
1, 162.6]J
1,191'a16
2,1981U
1,6W,039
499903E
604103
T. L-..
T. ucmi¢n
ISIEL101
8MIW
18899-J29
2{191,8J2
E1,
1143112
El115111
J5,164111
1158E U31
11,112,89E
Saks Yx
),091,568
1,115,16E
Z.037
6,3]131.
161].0]5
8896116
819211E
Tnmm oaiparty wes
4,1]$581
4,219,35E
), 961,25E
J,016,2'14
426103]
JE61I6]
J185.1
S25O,)61
3231,20E
lam
6E5]90
6L,696
625,31E
895810
118308E
1,U].470
1,276,1N
1,307032
1.11808E
B..
Bmm[ss ltem[Yrb
1861E0
191,ME
251618
E1691]
10]OJE
11101E
ONuum
356,026
J39EN
311.02,
31102E
511,914
615996
1,49,30E
832,15E
Mpw vMckwLy wee9muE
I,IM2w
1.12509E
1608,15E
2153M2
2151.4E
E,]i0,E13
185"5S
1,b161]
W3641
bhcSNen ueu�
)i18,EW
1.a ,01]
LW609]
I,JSJ,868
1.]1e H15
{116,050
6,319,IDE
11852,93E
10,2 10389
Gxnrymlma+lealuPmluux
-
,9
-
-
),31],00
1,96129E
-
57.3M
845cdWvu
N;036
692
693,691
5I3&76
1,189,61E
2.I9U74
1,1.093
2
1,130,63E
Larchrs
1�1'
(1,131 N31'
(SNIBA,645 615E
Tnal gnrm¢raalanrvma
3I023,115
1119321E
36,iP],65E
4E,ll9,L0
12650136
66.IO1.726
80,6W $16
19,967,5E1
BmmexiYKxWYrs
WtGaen grove
551
1,817
4,110
lanale arcapul asses
1
(a] 1E11
Tuef<rt
T.N.
JI 1i96D '
1,131.E01 '
814,N5
Ta bavos"wavW¢
41,45%.3
11377%
81616E
MAID
Tt pmusy ¢rvnxlen
31 On 115
33,695,4E
36,4W,652
42,319119
SJ,109]]9
61239,40E
91 i66998
19,92{IIO
CEaags mmx
GwuoouWatlrvwes
21,496515
10,193,50E
1,4mm
24A98459
(1,M0113)
611N8)
50,809J60
12,265,114
B,m,e13-type vgmws
0671,188
(2.66E1
(102%3)
(6390121
TOW pwauy g0asmnn
8 E4396,515
19,3".%l
14w8
24,08,09
39,13145E
67MM
."M,191
31,627,N2
ITe Oryajta Qmnra,mplemmred GASB JJ ja• eAe fsral)ror emfedJune )0 2001
/ �rmu Onp1m m 3he,mplemenmmn o/GASB 3f rs nolavm(aEk
� M4aml rwas Wrlard&goV cquss mgrovenen¢vamYertW mile E�8e0wnc Fwtl
Sow¢ G15'olle Qawa
129
=OF LA QO A
Changes in Nat Anus-Govunmanal Acu.,
Last F48N F.w Yara
(accmal bar¢ ofaccawttmg)
TABLE
2W1 2002 2W3 2W0 2W5 2006 2W7 2008
P meaa
Grneml govemmcm
8 3,146,6W
3,241,576
3,203,462
Public safely
5,]]6,628
7,522,532
8,547,005
Cmnmuntty eavm¢
94Q881
1411.943
1321,825
Planning and dwelopmrnt
6,146,998
7,110.125
19,083,860
Public works
5,968,911
6,434,239
6,785,759
Intan,a on long -tarn debt
5.861632
7791,759
8,555,401
Toul g9.cual acuvma eapmsa
27,841 749
33.512,174
47,49] 312
ProBma revenues
Charges for savmes
Ganenl government
214,W1
253,891
298,749
Public aaHry
2.80,434
2,544.528
2,917,866
Commumry iievicts
123,960
170,865
205.9%
Planning and development
709,033
565,098
611278
Public works
1.42%942
1316373
i,594,225
Opealmg gams and conmbu.ons
1,601,716
1,699,255
1,J97,031
Camtal gran. and contnbuaans
14,375.463
11662.424
5,IW405
Taal go.iaual ac6vt.e
P.W. revaic,i
21,315,149
IHE1204
12,5853W
Nat pogram revenue (aspensa)
(6526600)
(15299740)
(3491I952)
Gmual revenues and othu changes in net arse.
Taxi
propmy rues
1,162,634
1450,196
18W,616
Ti, inaement
15.324.183
188",329
21.191832
Sale.
3,]]8.583
3.093.598
4,345,381
Traarat occupancy aces
4,249,753
3,967,W3
4,036,290
Fraoch.e tax
625,790
654,696
690,544
Busuessb .e taza
156.026
168,798
186,220
Odso ua
359,284
311,024
513,934
hfotor vahmle in Jim, mrauncted
1496,620
1471,217
I )68,091
InvesLnat income
3,578,2011
3,006,WJ
1353,868
Gain (loss) on sale of caplal asu¢
-
(21397)
bLscellaneous
292036
692691
513,876
Transfers
To¢I governmaulawvma
31,023.115
33695,242
364W,652
Changes n na as5e. -
govanmaul amvi.e
T 24496,515
18,395,502
1488700
The Gry uf6 Qrama raplemen4ed GASB 34for erNedJune 30. 2001
Source Cayof"Quima
4.319,]]8 3.595,906 4.229.871 6,284,342 6,953,073
11256,461 9.512,875 9,065,244 12,724,100 11,472,036
1446,999 1.157,141 1,426.033 4,299,453 5,797,116
7,526.9]] 5,752,239 5,906,915 ],]36,520 35,323.858
6,W3,013 9, 101,582 10,006,335 10,511 8]4 11,097,526
9,658779 15,265,051 15,494 656 15,161422 15,522441
39,212,009 43,394,794 46,129.054 56,719,711 88,166050
337,376 445,663 7I7,849 60,530 UN
4,004,621 4439,115 4.168,206 2659,515 2.050.492
2S2,677 252,501 428,947 387,065 374092
662,]3] 754,938 1.873.676 169,643 134211
1,$ 13,993 2,815,703 3021,379 2,244.156 1900,43E
1]99,503 1,935.578 3,603,173 1196,495 5,905,664
12,MJ43 18,591423 33,918.901 17,WIJ31 50,090,419
20,961OSO 29233921 4],]12131 26918535 6Q463,643
(18250959) (141508731 1603,077 (29901176) (2]7024071
2.198,141 2,379,245 3,679,079 4.1M,05I 601430i
24,45Q337 24443,112 35,168,329 42,581,031 42.114,893
5,240,037 6,773,566 7613,075 8,896,716 9.492213
4.261267 4,831338 5,437,238 5,448,361 5,327,203
895,810 1, 185,087 1044,470 1259,985 1]48,082
191,062 251,618 2]6.91] 307,032 317,011
675,996 1.141,177 1049,701 8]2]53 641,705
I,We, 151 2,453,642 2740.233 3.291055 3803,647
1,738,505 4,336.050 6,319,502 11,854,951 10,230.489
- 3,]I],470 1,%7292 - 57,346
1489,61E 2.397474 1,943.093 2,052,246 1220,637
(41459643) (1,137203) (874,W)
42,J49,418 12.650.136 66 101]26 90,69g536 79967,521
24,498,459 (1,500,]371 67,704,803 50,8893W 52.265.114
130
TABLE 4
CITY OF LA QUINTA
Changes in Net Assets - Business -type Activities
Last Four Fiscal Years
(accrual basis of accounting)
Fiscal Year
2005
2006
2007
2008
Expenses:
Golf Course
1,877,291 2
4,523,146
4,520,173
4,761,581
Total business -type activities expenses
1,877,291
4,523,146
4,520,173
4,761,581
Program revenues:
Charges for services:
Golf Course
1,091,836 2
3,120,728
3,540,748
3,814,233
Capital grants and contributions
-
-
-
352,687
Total business -type activities
program revenues
1,091,836
3,120,728
3,540,748
4,166,920
Net revenues (expenses)
(785,455)
(1,402,418)
(979,425)
(594,661)
General revenues and other changes in net assets:
Investment income
-
553
1,817
4,310
Gain (loss) on sale of capital assets
-
-
-
(47,721)
Transfers
-
164,190
874,645
-
Capital contributions 1
41,459,643
973,013
979,425
Total business -type activities
41,459,643
1,137,756
1,855,887
(43,411)
Changes in net assets - business -type activities
40,674,188
(264,662)
876,462
(638,072)
The City of La Quinta implemented the business type activities in FY
200412005.
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
Source: City of La Quinta
131
CITYOF LA QUrMA
Fund Balances ofGovemmenml Funds
Lut Bight Fiscal Years
(modified accrual basis ofaccouniing)
Fi W Year
2001
2002
2003 2004
2005
2006
2007
2008
Gund"I fund
Itcesved
$ 11,746,211
12,997,893
21,099,910 29.210,757
32.412,590
23,210,506
28,388,633
45,441,896
Lher.ed
23,878,259
27,981,710
26,584,773 25,494,479
31514,377
53,058619
56,251,887
47,010,123
Tinted general fund
E 35,624,4]0
40,8]9,60J
4],684,683 54,205,236
b1,926,96J
]6,269,124
84,640,520
92,452,019
All other governmental funds
neserted
S 13,480.545
45,508,787
38,404,982
98476,000
99,751,862
95,515,445
31.211,751
I1,568,I26
Unreserved reported in
Special revenue funds
6,352,995
12.107,305
9,382.431
9,286,459
19,267,394
36,475,093
27,770,552
32,419,068
Debt.. funds
(6,80g030)
(5,622,884)
(6,182,506)
(I IpM,245)
(9,236,054)
738,590
10,634
55,831061
Capital projects finds
19,712013
12,423247
16,368,205
2860g240
1,831,415
6,499,827
58370398
(4,445,109)
Total all other govenn¢nW funds
$ 31,745,523
64,416,455
57,973,112
125,263,454
113,614,617
139,228955
117,363,135
95.373.146
ad City offn Qumra has efectedta show only e,gh,yeu, afdmnforfhuachedu(e
' The mcrcaze was primarily the resuh ofthe issuance ofthe 2004 financing Authority bonds
Source Ciryof"Qunin
132
TABLE
CITY OF LA QUINPA
Changes in Fund Balances ofGovernmental Foods
Last Eight Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2001
2002 2003 2004
2005
-
2006
2007
2008
Revenues'
Taxes
$ 36,605,534
43,011 931 50,326,811 58,301 082
68,175,347
$9,704,947
100,103,324
105,870,933
Licenses and permits
2,057,423
1,857,691 1982,127 3,096,145
3,226,167
5,145,430
2,788,882
2,107,035
Charges for services
1,998,589
1,757,744 2,302,759 2,619,578
3,402,602
3,367,989
1,821,794
1334,060
Developer foes
2,592,398
2 298,647 3,021,245 5,7I8,073
6,091,156
12,473,440
5,310,440
6,537,991
hitergovemmental
9,400,340
9,583,451 7,194,521 11,858,627
10,242,876
18,585,468
14,803,971
15,382,135
Investment income
4,893 919
4,135,009 3,368,709 3,735,984
6,215,291
9,946,212
12,692,350
11,297,153
Contributions
-
- - -
-
-
-
37,643,190
Special assessments
782,610
757,619 780,259 816,045
825,292
818,526
877,191
909,229
Rental income
1067,076
1,001,389 1,094,510 1,118,744
1201,463
1,103 600
1,064,978
1,105,962
Loan repayments
-
- - -
2,381,602
1,621,850
1,047,020
471,8t1
Other
502,717
584,197 493,777 1,359,539
528,903
637,054
412,353
629,471
Total revenues
59,900,606
64,987678 70,554,718 98,623,817
102,290,699
143,404,516
140,922,303
183,288,970
Expenditures
Current
General government
3,275,624
3,161,596
3,344,407
4,099,376
7970,921
4,644,954
6,150699
7,367,144
Public mfety
5,636,154
7,610,308
8.344,428
9,672,708
12,364,583
13,029,187
15,685,493
17,181,775
Cammwriy..
817,460
1,067,837
993,964
1,025,397
1,104,509
1,248308
4,027,302
5,336,757
Planning and development
6,344,764
10,693,374
7,804,294
7,480,421
5,719,373
5847,563
28994,177
15,374,160
Public woks
2,613,928
2897,312
3,685,050
4,536,589
6,206,769
6,987014
6,755,507
6,563,494
Capital projects
14,456,314
57,342,978
16,057,578
43,331,919
40,012,387
25,445 550
36 420,417
82,883 317
Debt service
Principal retirement
4,510,420
11,453,487
2,931 952
3,610,538
3,793,660
4,777,748
5,647,940
5,949,311
fnterest and fiscal charges
5,942,929
7,017,016
9,469,314
13,961.721
14,355,577
15.554,612
15,059,977
15,424,708
Payment to bond escrow
-
-
-
1,591,107
-
-
-
Payments under pass -through obh
10,949,381
13,669,166
17,561,994
21,448,147
25,756,321
35,958,291
36,498,575
42,989,023
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
Capital leases
Proceeds from sale of capital assets
Total other financing
sources (gyres)
Net change in fund balances
54,546,974 114,913,074 70,192,981 110,757,923 113 284,100 113,49J 227 155,240087 199 069,689
5,353,632 (49,925,396) 361,737 (22,134,106) (10,993,401 29,911,289 (14,317,784) (15 780,719)
88,000,000 26,400,000
- 90,000,000
- (19,955 000)
17,911,515 64,255 590 23 887,256 154,613,662
(17,911,515) (65,255 590) (23 887,256) (154,613,662)
146,603
49,248,081 35,828,335
(49,248,081) (35,992,525)
8,566,295 8,209,396
60,954,576 88,604,682
(60954,576) (87,342,608)
- 182,094
124,097 158,061
87,146,603 96,445,000 8,566,295 8,045,206 124,097 1,602,229
S 5,353,632 37,221,207 361,737 74,310,894 S 2,4( 27,106) 37,956,495 14,193,687 14,1( 78,490
Debt service as a percentage of
nancapital expenditures 49 1% 54 2% 43 5 % 57 9 % 62 0% 65 5% 6 L0 % 47 1 %
The City of La Qumm has elected to show only eight years ofdata for this schedule
Source Cityofla Q=m
133
TABLE 7
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
Entire Ci
(including
Redevelopment Agenc )
Fiscal Year
Taxable
Ended
Less:
Assessed
June 30
Secured
Unsecured
Exemptions
Value
Percent Change
1999
2,674,887,437
18,756,736
(38,580,062)
2,655,064,111
N/A
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%
2008
12,410,626,893
113,185,065
(107,777,195)
12,416,034,763
4.63%
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.
Source: County of Riverside Auditor -Controller
134
TABLE 8
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency
Last Three Fiscal Years
(in dollars)
Redevelopment Agency Project Area 1
Fiscal Year Taxable
Ended Less: Assessed Base Taxable
June 30 Secured Unsecured Exemptions Value Year Increment
2006
3,962,433,928
29,248,534
(11,604,295)
3,980,078,167
199,398,233
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
2008
5,259,271,091
31,678,492
(36,844,457)
5,254,105,126
199,398,233
5,054,706,893
Redevelopment Agency Project Area 2
Fiscal Year Taxable
Ended Less: Assessed Base Taxable
June30 Secured Unsecured Exemptions Value Year Increment
2006
2,132,426,502
32,999,788
2007
2,764,306,278
50,616,017
2008
2,843,981,136
62,180,440
Source: County of Riverside Auditor -Controller
(54,125,422) 2,111,300,868
(40,774,044) 2,774,148,251
(57,076,727) 2,849,084,849
95,182,755 2,016,118,113
95,182,755 2,678,965,496
95,182,755 2,753,902,094
135
TABLE9
CITY OF LA QUR4TA
Dvect
and Overlapping Pmpcny
Tax Rates
(Raze
per $I
W of assessed value)
Last T1vee Fiscal Year
City
Redevelopmenit
Redevelopment
Non -Project Area
Poojcm
Area I
Project Area 2
2W6i
2W71
2W81
20061
2001a
2W8°
2Wb3
2W2s
2008°
Dutm Rates
City of La Qumm
00/60
00260
00760
00000
OWm
000W
00000
0Gym
0"0
RWbiob,pmem agency Prole,, Area l
00"
00000
000m
05830
05880
05150
aOW0
00000
00000
Redevelopment agency Protect Area 2
0t1000
00000
00000
0now
00000
0MOO
028W
02920
02910
County of Rnvaode
01960
01960
019W
03420
034W
03460
03470
03420
03470
County Free Libwy
00250
00250
00250
00010
00010
00010
00010
OWIO
OWIO
C-ody Smictive P. Protection
00540
00540
00540
0W30
0W20
0W20
0W20
0W20
OW20
Coachella Valley(CV) Umfred School
04320
04320
04320
00170
00150
0W20
00000
0"0
0W20
Desert Sands Unified School
00000
00000
00000
00160
00140
00140
020m
01980
01920
Desert Community College
002W
007W
007W
OW30
0W30
00220
0N20
00410
00410
Rnversde Comity Office of Education
00380
00380
00380
OW30
0W30
00180
00230
00220
00220
Rovers&& County RN-eml Park&Op. Space
00040
00040
00040
00000
00000
0W30
00000
00000
00000
CV Public Cemetery
OW32
0W32
0W32
00000
00000
00000
00000
00W0
00000
CV M.'"o,
00127
00127
00127
00120
00120
00120
00150
00140
00140
CV Peak & Recitation
00192
00192
00192
OWIO
0W20
OW10
00060
00060
00060
CV Winer Drsmm
00250
00250
00250
00130
00130
Om10
00170
00960
007W
CV Resource Comservahon
0W03
0W03
00003
0OWO
00000
00130
00000
00000
OOWO
CVWD Dismm l Debt Service
00119
00118
00118
OWm
00000
OWm
OOWO
0W00
00000
CVWD Storm Wafer Umt
00320
00320
00320
OWIO
OWIO
00000
00010
00010
OWIO
Tmal Dvoct Rate
09992
09992
009992
10000
10000
1.0000
10000
10000
10000
Tax Rine Area
020-005 020-005 020-0D5
020-0I5 020015
020-089
020-144 020-144
020144
OvadappoR Roes °
City of La Quoits
County of Riverside
Riverside County Office of Education
Riverside County Pension Obligation
Desert Sands Udfied
00762
00761
00299
00762
00761
00756
00767
00261
00756
Coachella Valley Unified School Dismct
Coachella Valley Water Dlmut
00442
00332
001,62
0 01 W
00208
00484
00442
00332
00484
Coachella Valley Recreation& Park Distinct
Dean Comm College Dnsmct
001"
00199
00199
00208
00199
00199
001W
00199
00199
Total Overlapping Raze
01409
01293
01461
01125
01169
0[440
014W
01293
01440
Total Drect and O erlapping Rate
1 1401
1 1285
1 1453
I 1175
1 1169
1 1440
1 14W
1 1293
1 1440
NOTE
to 197e,Califomu vaea paved lse x a asa Il wbc6 ensdw propciry nix resit u e I �. fixed amounttar duns,
W. ijus I W/.. s dared lit a0 taunt, agcnces ne, e" the wbjcct properly oodnwuhn.
Source Cmuityof Rtversidt Audvm Convollefs Office
I Dead me from Tax Raze Area (TRA) 020-059 provided by
Ball Corers & Cone and ovalappmg debt onto from Caldomm
Minnows] Sotrmcs
s Drect rare taken from all non -RDA TRA's pmvtded by the
County of Riversde and do not include ERAF deductions and
ovedappmg rotes provided by Calif -me, Municipal Statistics
i Direct rate taken from an analysis by me City of La Quints
Finaiice Depamnent staff of all TRA's in the Project area and do
rot include State ERAF deductions aril ovedappuig net,
provided by Caldomia Mimcipal Statistics
° Direct one taken from an analysis of thel TRA in the Project
aro and do not include State ERAF deducoons and ovedappuig
rams pounded by California, Municipal Statistics
s OvedapPaig toes are based upon a single no, me area ody
136
CITY OF LA QUINTA
Principal Property Taxpayers
Current Year and Nine Years Ago
(in dollars)
Taxpayer
KSL Desert Resort, Inc $
TD Desert Development
Sams Real Estate Trust/Wal Mart
Village Resort
Quarry at La Quinta
CNL Desert Resort
Fourth Quarter Properties XLIII
WKL Canyon Ridge Associates
Aventine Development
Apartment at La Quinta Village 11 LLP
One Eleven La Quinta
2008
Percent of
Total City
Taxable Taxable
Assessed Assessed
Value Value
381,086,929
47,028,524
36,819,850
33,146,143
31,377,029
26,665,873
26,491,514
24,531,000
22,350,100
20,194,087
15,950,227
3.07%
0.38%
0.30%
0.27%
0.25%
0.21%
0.21%
0.20%
0.18%
0.16%
0.13%
$ 665,641,276 5.36%
TABLE 10
t'S
Percent of
Total City
Taxable Taxable
Assessed Assessed
Value Value
174,875,149
6.59%
18,313,493
0.69%
12,027,516
0.45%
NOTE :The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
Source: HdL Coren & Cone
137
TABLE I I
CITY OF LA QUINTA
Property Tax Levies and Collections
Last Thee Fiscal Years
( in dollars)
Collected within the
Fiscal Taxes Levied _ Fiscal Year of Leyy 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, I89,425 123.84%
2007 79,752,191 74,533,984 93.46% 1,802,076 76,336,060 95.72%
2008 84,100,395 87,804,912 104.40% 3,216,547 91,021,459 108.23%
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
091.1
Ratios of Outstanding Debt by Type
Last Three Fiscal Years
(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
Tate Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds '
City Hall Lease Revenue Bonds
Unamortized Discount and Issuance Costs
Total Governmental
Business -type Activities
Capital Leases
Total Business -type activities
Total Primary Government
Population -State Department of Finance January 1
Number of Households
Median Household Income
Percentage of Personal Income
Debt Per Capita
TABLE 12
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
2006 2007 2008
$ 328,311 $
278,311 $
228,311
608,266
734,055
829,227
5,186,627
4,431,178
3,675,731
1,850,000
1,750,000
1,600,000
776,030
643,539
511,048
14l,785,000
139,145,000
136,350,000
6,130,000
6,025,000
5,915,000
89,265,000
87,745,000
86,175,000
6,245,000
5,900,000
5,540,000
(877,230)
(877,230)
(841,087)
251,297,004
245,774,853
239,983,230
1,090,602 825,848 681,048
1,090,602 825,848 681,048
$ 252,387,606 $ 246,600,701 $ 240,664,278
38,340 41,092 42,958
18,762 20,176 21,058
$ 65,906 $ 67,754 $ 74,683
20.41% 18.04% 15.30%
$ 6,583 $ 6,001 $ 5,602
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 I & 2 low & moderate income tax increment.
139
TABLE 13
CITY OF LA QUINTA
Ratio of General Bonded Debt Outstanding
Last Three Fiscal Years
(In Dollars)
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
Bonds
Total Value I
Capita
2006
6,245,000
89,265,000
147,915,000
243,425,000
2007
5,900,000
87,745,000
145,170,000
238,815,000
2008
5,540,000
86,175,000
142,265,000
233,980,000
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
2.44% $ 6,349
2.01% $ 5,812
1.88% $ 5,447
140
TABLE 14
CITY OF LA QUBQTA
Direct and Overlapping Debt
June 30, 2008
City Assessed Valuation $ 4,607,425,776
Redevelopment Agency Incremental Valuation 7,808,608,987
Total Assessed Valuation $ 12,416,034,763
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage
Outstanding
Overlapping
Applicable
Debt 6/30/08
Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District
7.438%
$ 337,870,330
25,130,795
Coachella Valley Unified School District
29.508%
93,982,458
27,732,344
Desert Sands Unified School District (DSUSD)
7.836%
214,839,044
16,834,787
DSUSD Lease Tax Obligations
7.836%
13,590,000
1,064,912
Coachella Valley County Water District I.D. No. 55
83.015%
4,590,000
3,810,389
Coachella Valley County Water District I.D. No. 58
6.809%
2,160,000
147,074
DSUSD Community Facilities District No. 1
100.0000%
1,945,000
1,945,000
City of La Quinta 1915 Act Bonds
100.000°/a
1,705,000
1,705,000
Coachella Valley Water District Assessment District No. 68
86.2470/.
2,255,000
1,944,870
Total overlapping debt repaid with property taxes
672,936,832
80,315,171
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations L516%
Riverside County Pension Obligations 1.5160%
Riverside County Board of Education COP 1.516%
29.508%
7.836%
10.850%
12.511%
Coachella Valley Unified School District COP
DSUSD COP
Coachella Valley County Water District I.D. No. 71 COP
Coachella Valley Recreation and Park District COP
Total overlapping other debt
Total overlapping debt
City direct debt
Total direct and overlapping debt
$ 701,562,556
10,635,688
387,995,000
5,882,004
9,275,000
140,609
53,830,000
15,884,156
12,420,000
973,231
6,390,000
693,315
2,510,000
314,026
1,173,982,556
34,523,029
$ 1,173,982,556 114,838,200
240,664,278
$ 355,502,478
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.
Overlapping 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
overlapping government.
Source: California Municipal Statistics, Inc.- overlapping debt
Source: City of La Quinta - City Direct debt
141
CITY OF LA QUINTA
Legal Debt Margie b f-[nation
Last Eight Fiscal Years
(in dollars )
TABLE 15
2001
2002
2003
2004
2005
2006
200]
2008
Assessed valmtion
53,143,395,801
3,767,559,451
5,357.903,512
6,220,471,097
7,813,866,586
9,975,646,644
11,866,4t4,134
12,416,034,763
Debt hvut percentage
15%
15%
15%
IS%
15%
15%
15%
15%
Debt[unit
471,509,370
565,133,918
903,685,527
933,070,6(15
1,172,079,988
1,496,346,997
1,779,%2,120
1,862,405,214
Total me debt applicable to limn
Genual obligation bonds
Legal debt nargm
S 471,509,370
565,133,918
803,685,527
933,070,665
I,I72,079,988
1,496,346,997
1,779,%2,120
1,862,405,214
Total debt applicable to the Ivoit
as a fecentage fdebt Lund
0.0%
00°0
00°0
00%
00°0
00%
00%
001/6
Static. 43605 of the Govanmeot Code of the Some ofC4hfomm limits the amount of ndebtedness for
public unprovemeou to 15%of the assessed valoatwn-fall real and personal property of the City
The City-f La Quiida has an general bonded indebtedness
Sanee: Cdy of La Quiata Finance Depamnent hocd upon the Assessed valuation received from the
CO mlyof Riverside Auditor Controllers Office
142
Fiscal Year
Ended
2006
2007
2008
CITY OF LA QUINTA
Pledged -Revenue Coverage
Last Three Fiscal Years
(In Dollars)
Tax Allocation Bonds - Project Area I
Tax Less: Other Net Tax Debt Service
Increment
Debt Payments
Increment '
Principal
36,506,201
20,638,731
15,867,470
2,500,000
42,029,503
20,820,149
21,209,354
2,640,000
43,476,312
25,383,713
18,092,599
2,795,000
Tax Allocation Bonds - Project Area 2
TABLE 16
Interest
Coverage
7,805,905
1.54
7,658,900
2.06
7,500,553
1.76
Fiscal Year
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
Increment
Debt Payments
Increment I
Principal
Interest
Coverage 1
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
2008
23,087,750
20,929,512
2,158,238
110,000
310,135
5.14
Fiscal Year
Ended
June 30
2006
2007
2008
Fiscal Year
Ended
June 30
2006
2007
2008
2004 Local Agency Revenue Bonds
Tax
Less: Other
Net Tax
Debt Service
—Increment '
Debt Payments
Increment
Principal
Interest
Coverage
14,089,024
0
14,089,024
735,000
4,436,981
2.72
15,701,664
0
L5,701,664
1,520,000
4,402,909
2.65
16,641,016
16,641,016
1,570,000
4,356,806
2.81
Local
Agency Revenue Bonds (City Hall
Project)
Lease
Less: Other
Net Lease
Debt Service
Revenue z
Debt Payments
Revenue
Principal
Interest
Coverage
680,575
0
680,575
330,000
350,575
1.00
678,865
0
678,865
345,000
333,865
1.00
675,880
0
675,880
360,000
315,880
1.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements.
t Tax increment has been reduced by other debt payments, which may or may not be subordinated to Tax
Allocation Bonds
] Lease revenues consist of payments from the City General Fund, Civic Center Development Impact Fee Fund
and the Redevelopment Agency Capital Projects Fund
3 Tax increment revenues from both Project Area I and Project Area 2 Low & Moderate Income Funds are
used to pay the annual debt service payments.
143
TADLEI7
CITY OF LA QUINTA
Demographic and Economic Statistics
Last Three Calendar Years
Calendar Calendar
Calendar
Year Year
Year
2006 2007
2008
City Land (Sq Miles)
(3) 35.1 35.1
35.31
Population
(I) 38,340 41,092
42,958
Median Household Income (in dollars)
(4) $65,906 $67,754
$74,683
Number of Dwelling Units
(3) 18,762 20,176
21,058
Persons per Household
(3) 2.855 2.846
2,851
Average Income per person per household
$23,084 $23,807
$26,195
Labor Force
(2) 14,500 15,300
15,200
Employment
(2) 14,100 14,900
14,600
Unemployment Rate
(2) 2.76 % 2 61 %
3.95%
Median age
(4) 36 36.4
364
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
144
TABLE 18
CITY OF LA QUINTA
Principal Employers
Current Year and Nine Years Ago
2007-2008
1998-19991
Percent of
Percent of
Number of
Total
Number of Total
Employer
Activity
Employees
Employment
Employees Employment
Desert Sands Unified School Distict Government
2,398
16.42%
525
La Quinta Resort & Club
Hotel & Golf Resort
1,550
10.62%
1,500
Wal-Mart Super Center
Retailer
400
2.74%
280
Costco
Retailer
207
1.42%
-
Rancho La Quinta
Golf Resort
200
1.37%
150
Imperial Irrigation District
Public Utility
200
1.37%
-
Target
Retailer
185
1.27%
-
Lowe's Home Improvement 3
Retailer
150
1.03%
125
Stater Brothers
Grocery Store
150
1.03%
150
Home Depot
Retailer
147
1.01%
185
Total employment listed 5,587 38.27%
Total City Employment -July 1 14,600
"Total Employment" as used above represents the total employment of all employers located
within City limits with over 100 employees
Source: 2007-2008 Muniservices, LLC and I998-1999 City of La Quinta
'The total City employment and %applicable for 1999 was not available
2,915 Not Available
Not Available
145
TABLE 19
CITY OF LA QUINTA
Full-time City Employees
by Function
Last Four Fiscal Years
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending
June 30
June 30
June 30
June 30
Function
2005
2006
2007
2008
Administration
8.00
9.00
10.00
12.00
City Clerk
5.00
5.00
5.00
6.00
Finance
8.00
9.00
9.00
9.00
Community Services
8.00
10.25
10.25
11.25
Building and Safety
21.00 4
22.00
24.00
25.00
Planning and Development
9.00
12.00
12.00
12.00
Public Works
23.50
26.25
26.25
28.25
Golf Course
0.50
0.50
0.50
0.50
Total
83.00
94.00
97.00
104.00
Source: City of La Quinta
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.
146
TABLE 20
CITY OF LA QUFNTA
Operating Indicators
by Function
Last Three Fiscal Years
2006
2007
2008
Finance:
Number of Active Business Licenses
3,208
3,424
3,690
Number of Animal Licenses Processed
892
1,022
1,272
Number of Accounts Payable Checks Processed
4,696
4,722
4,840
Number of investment purchases
39
73
64
Par value of investments
$327,417,000
$392,729,000
$424,500,000
Number of cleared checks
5,081
4,837
5,501
Number of outgoing bank wires
202
158
136
Public Works:
Encroachment permits issued
304
218
Ito
Request for services
618
419
1152
Building & Safety:
Permits:
Single family Detached
1,044
526
297
Single family Attached
227
38
0
Residential Pool
866
612
331
WalifFence
1,502
963
583
Other
1,607
1,404
1,121
Total Permits
5,246
3,543
2,332
Code Compliance
Animal Control Incidents Handled
1,901
687
2,920
Vehicle abatements
909
296
351
Garage Sale Permits
1,190
1,444
1,519
Weed abatements
141
76
117
Nuisance abatements
1,611
2,032
2,142
Community Services:
Library activities
Library Volume
42,050
44,981
66,124
Library books checked out
55,002
99,659
117,738
Library Cards Issued
5,550
5,325
3,675
Number of School Children Visiting Library
745
260
841
Library Volunteer Hours
1,991
1,583
1,951
Senior Center.
Number of visits
14,305
12,955
14,013
Senior Center Volunteer Hours
3,481
4,192
3,332
Recreation activities
Participants:
Leisure Classes
1,373
1,192
990
Special events
4,668
7,809
8,109
Adult Sports
3,402
6,827
8,550
Golfcoutse:
Golf rounds played
38,934
40,548
40,516
Average $ Green fee
71 12
76.97
8109
Planning and Development:
Number of residential units approved
1,063
534
338
Commercial square footage approved
533,726
124,821
342,502
Source, City of La Quota
147
TABLE 21
CITY OF LA QUINTA
Capital Asset Statistics
by Function
Last Three Fiscal Years
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
June 30
June 30
June 30
2006
2007
2008
Public works:
Streets (miles)
118.40
122
127
Bikepaths (miles)
22.00
22
22
Streetlights
73
85
85
Traffic signals
44
45.25
45.25
Traffic Signs
2,799
2,845
2,895
Bridges
12
12
12
Parks and recreation:
Parks
12
12
13
Park Acreage
207
207
209
Undeveloped Park Acreage
40
40
40
Senior Center
I
1
I
Museum
l
t
1
Library
I
1
1
Golf Course:
Municipal golf courses
I
1
I
Source: City of La Quinta
148
TABLE 22
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2008
Company Name
Policy Number Coverage
Limits
Term
Premium
Hartford
72BPEEW0254 Employee Dishonesty,
$1,000,000
12/3/08 - 09
$3,013
Forgery, Computer Fraud
kmerican Wholesah
5467276 All Risk Property Insurance
40,900,000
07/01/07 - 09
59,258
Including Auto Physical Damage
(Excluding Earthquake)
Pacific Ins
ZG0036449 Earthquake & Flood
7,500,000
02/07/07-09
I3I,630
Endurance his
10000326200 Real & Personal Property
Including Contingent Tax Interruption
California
Comprehensive General $0 Deductible Retention 07/01/07 - 09
281,125
Joint Powers
Liability
$50 Million
Insurance Authority
California
Joint Powers
Insurance Authority
Worker's Compensation
5,000,000 07/01/07 - 09 175,642
149
THIS PAGE INTENTIONALLY LEFT BLANK
150
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item B
Meeting Date: December 10, 2008
ITEM TITLE:
Month End Cash Report - November, 2008
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.
Information item only.
M. Falconer, Finance Director
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Home , Institutional , Announcements, Data & Results , Latest Auction Data , Recent Bill Auction Results
Recent Bill Auction Results
Security
Issue
Maturity
Discount
Investment
Price
CUSIP
Term
Date
Date
Rate %
Rate %
Per$100
4-WEEK
11-28-2008
12-26-2008
0.050
0.051
99.996111
91279SJ44
13-WEEK
11-28-2008
02-26-2009
0.150
0.152
99.962500
91279SK59
26-WEEK
11-28-2008
05-28-2009
0.490
0.498
99.753639
912795M24
328-DAY
11-28-2008
10-22-2009
1.000
1,021
99.088889
912795544
4-WEEK
11-20-2008
12-18-2008
0.100
0.101
99.992222
912795J36
13-WEEK
11-20-2008
02-19-2009
0.150
0.152
99.962083
91279SK42
26-WEEK
11-20-2008
05-21-2009
0.640
0.855
99.575333
912795190
52-WEEK
11-20-2008
11-19-2009
1.040
1.063
98.948444
912795551
254-DAY
11-18-2008
07-30-2009
1.050
1.071
99,259167
912795Q95
182-DAY
11-14-2008
05-15-2009
0.990
1.009
99.499500
912795V32
4-WEEK
11-13-2008
12-11-2008
0.070
0.071
99.994556
912795328
13-WEEK
11-13-2008
02-12-2009
0.355
0.360
99.910264
912795K34
26-WEEK
11-13-2008
05-14-2009
0.990
1.009
99.499500
912795L82
4-WEEK
11-06-2008
12-04-2008
0.320
0.325
99.975111
912795H95
77-DAY
11-06-2008
01-22-2009
0.420
0.426
99.910167
912795385
13-WEEK
11-06-2008
02-05-2009
0.530
0.538
99.866028
91279SK26
26-WEEK
11-06-2008
05-07-2009
1.100
1.122
99.443889
9127951-74
238-DAY
11-06-2008
07-02-2009
1.330
1.358
99.120722
912795Q87
4-WEEK
10-30-2008
11-28-2008
0.440
0.446
99.964556
912795H87
64-DAY
10-30-2008
01-02-2009
0.700
0.711
99.875SS6
912795351
13-WEEK
10-30-2008
01-29-2009
0.900
0.915
99,772500
912795393
26-WEEK
10-30-2008
04-30-2009
1.400
1.430
99.292222
912795166
4-WEEK
10-23-2008
11-20-2008
0.700
0.710
99.945556
91279SH79
13-WEEK
10-23-2008
01-22-2009
1.250
1 271
99.684028
912795385
98-DAY
10-23-2008
01-29-2009
1.240
1.261
99.662444
912795393
26-WEEK
10-23-2008
04-23-2009
1.800
1.842
99.090000
912795L58
52-WEEK
10-23-2008
10-22-2009
1.720
1.767
98.260889
912795544
225-DAY
10-22-2008
06-04-2009
1.600
1.636
99.000000
912795Q79
74-DAY
10-20-2008
01-02-2009
0.800
0.812
99.835556
912795351
94-DAY
10-20-2008
01-22-2009
0.930
0.945
99.757167
912795385
191-DAY
10-20-2008
04-29-2009
1.350
1.378
99.283750
912795T92
247-DAY
10-20-2008
06-24-2009
1.350
1.379
99.073750
912795U2S
4-WEEK
10-16-2008
11-13-2008
0.100
0.101
99.992222
912795H61
63-DAY
10-16-2008
12-18-2008
0.490
0.497
99.914250
912795136
13-WEEK
10-16-2008
01-15-2009
0.500
0.508
99.873611
912795177
26-WEEK
10-16-2008
04-16-2009
1.100
1.122
99,443889
91279SL41
97-DAY
10-10-2008
01-15-2009
0,800
0.813
99,784444
912795377
4-WEEK
10-09-2008
11-06-2008
0.660
0.690
99.947111
912795H53
63-DAY
10-09-2008
12-11-2006
0.770
0.782
99.865250
912795328
13-WEEK
10-09-2008
01-08-2009
0.460
0.467
99.883722
912795369
Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method.
Freedom of Information Act I Law & Guidance I Privacy_& Legal Notices I Website Terms & Condition
U.S. Department of the Treasury, Bureau of the Public Debt
http://www.treasurydirect.gov/RI/OFBills 12/1/2008 3
FRB: Commercial Paper Rates and Outstandmgs
. 1- - -._ .
Federal Reserve Release
Release I About I Announcements I Outstandings I Volume statistics I Y(W-end I Maturi Distribution
Data Download Program (DDP)
Announcement: Clarification of Criteria Considered for Commercial_ Paper Rates
Data as of November 28, 2008
Commercial Paper Rates and Outstanding
Derived from data supplied by The Depository Trust & Clearing Corporation
Posted December 1, 2008
D'scount rates
Term
AA
nonfinancial
A2/P2
nonfinancial
financial
AA
asset -backed
1-day
7-day
15-day
30-day
0.70
0.25
0.64
0.37
3.18
5.58
5.29
6.23
n.a.
n.a.
0.46
0.73
0.73
0.91
1.25
1.30
1.57
1.29
1.43
1.53
1.90
2.10
60-day
n.a.
90-day
n.a.
Trade data insufficient to support calculation of the 60-day AA nonfinancial, 90-day AA nonfinancial, 60-day A2/P2 nonfinancial, and 90-day A2/P2
nonfinancial rates for November 28, 2008.
Yield curve
http://www.federalreserve.gov/releases/ep/ 12/1/2008 4
FKB: Commercial Faper Kates ana Uutsianamgs
Vlaney nMirME UUNIN
— — — AAnontinuncial
........... A21P2 nonfinancial
--- Aar financial
i. w _
i
I
1 7 15 30 60 90
Days to Mawrity
Discount rate spread
2001 2002 2003 2004 2005 2006 2007 2008
Discount rate history
10
8
6
4
0
720
630
540
450
360
270
180
90
0
http://www.federalreserve.gov/releases/cp/
12/1/2008 5
1,KB: i ommerclai raper mates anu vutstauuings
ar, . i ,,.
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollars
1190
1090
990
890
790
690
590
490
--- NoNinalicial(right s,:alc)
-- I'iu�tclal ilcR scale}
1 � �
1� it�r
A
7
6
5
4
3
2
I
Billions of dollars
290
250
y
210
is 1,•
170
�i
130
90
2001 2002 2003 2004 2005 2006 2007 2008
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(DEW). This policy is subject to
change at any time without notice.
Release I About I Announcements I Outstare ings I Volume statistics I Year-end I Maturity Distribution
Data Download Program (DDP)
http://www.federalreserve.gov/releases/ep/ 12/1/2008 6
FKB: Commercial raper Kates ana vtitstanomgs ragc w ui Y
Home I Statistical releases
Accessibility I Contact Us
Last update: December 1, 2008
http://www.federalreserve.gov/releases/cp/
12/1/2008 7
r": r1.1J--3electeu 1meIesL 1CaLCs, W eU-Ulny Malty upUalc-- NUvcluucl LO, LUUo
r asc i vi -r
Federal Reserve Statistical Release
K 15
Selected Interest Rates (Daily)
skip to content
Release Date: November 28, 2008
Weekly release dates I Historical data I Data Download Program (DDP) I About I Announcements
Daily update Other formats: Screen reader I ASCII
"Data Download
14'1 01 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
Instruments
Federal funds (effective) 1 2 3
Commercial Paper 3 4 5 6
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
CDs (secondary market) 3 7
1-month
3-month
6-month
Eurodollar deposits (London) 3 8
1-month
3-month
6-month
Bank prime loan 2 3 9
Discount window primary credit 2 10
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
3-month
6-month
1-year
Treasury constant maturities
Nominal 11
1-month
3-month
November 28, 2008
2008
2008
2008
2008
Nov
Nov
Nov
Nov
24
25
26
27*
0.62
0.59
0.53
0.53
0.46
0.64
n.a.
1.10
1.21
n.a.
n.a.
1.29
n.a.
1.42
1.45
1.31
1.88
1.88
1.16
2.03
1.70
n.a.
1.35
1.45
1.40
2.18
2.21
2.23
2.60
2.68
2.75
2.00
2.00
2.00
3.00
3.00
3.00
3.60
3.60
3.60
4.00
4.00
4.00
4.00
1.23
1.25
1.25
1.25
0.01
0.04
0.02
0.13
0.10
0.05
0.54
0.53
0.48
0.92
0.93
0.91
0.01
0.04
0.02
0.13
0.10
0.05
http://www.federalreserve.gov/Releases/H15/update/ 12/1/2008 8
FRB: H.15--Selected Interest Kates, web -only Uauy update--ivovember /a, zvva rage L vi +
6-month
0.54
0.53
0.48
1-year
0.95
0.95
0.93
2-year
1.31
1.15
1.09
3-year
1.53
1.41
1.38
5-year
2.24
2.06
2.01
7-year
2.71
2.49
2.43
10-year
3.35
3.11
2.99
20-year
4.01
3.85
3.77
30-year
3.78
3.63
3.54
Inflation indexed 12
5-year
4.19
4.12
4.24
7-year
4.27
3.96
3.86
10-year
3.11
2.79
2.68
20-year
3.32
3.14
3.10
Inflation -indexed long-term average 13
3.44
3.30
3.22
Interest rate swaps 14
1-year
2.13
1.98
2.04
2-year
2.29
2.10
2.13
3-year
2.61
2.36
2.40
4-year
2.92
2.65
2.68
5-year
3.15
2.86
2.89
7-year
3.41
3.09
3.10
10-year
3.54
3.21
3.22
30-year
3.41
3.16
3.18
Corporate bonds
Moody's seasoned
Aaa 15
5.92
5.75
n.a.
Baa
9.21
9.12
n.a.
State & local bonds 16
Conventional mortgages 17
* Markets closed.
n.a. Not available.
Footnotes
5.97
---------------
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. Financial paper that is insured by the FDIC's Temporary Liquidity Guarantee Pr
excluded from relevant indexes, nor is any financial or nonfinancial commercial p
directly or indirectly affected by one or more of the Federal Reserve's liquidity
the rates published after September 19, 2008, likely reflect the direct or indire
new temporary programs and, accordingly, likely are not comparable for some purpo
published prior to that period.
http://www.federalreserve.gov/Releases/H15/update/ 12/1/2008 9
rtcn: r1.13--3e1ecieu lluUFUSL lcaLeS, weo-Uuiy Laiy vyunLc--ivuvcuiuci 40, 4vv0 rage � v. �
7. An average of dealer bid rates on nationally traded certificates of deposit.
8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time.
9. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.
commercial banks. Prime is one of several base rates used by banks to price short
loans.
10. The rate charged for discounts made and advances extended under the Federal R
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
11. 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/ltcompositei
Source: U.S. Treasury.
12. 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
13. Based on the unweighted average bid yields for all TIPS with remaining terms
more than 10 years.
14. 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.
15. 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
16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Th
17. Contract interest rates on commitments for fixed-rate first mortgages. Source
Market Survey(R) data provided by Freddie Mac.
---------------------------------------------------------------------------------
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
http://www.federalreserve.gov/Releases/Hl5/update/ 12/1/2008 10
FRB: H.I9--Selected Interest Kates, web-unty uatly upaate--tNovemoer /a, /uva rage 4 ui Y
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 Download Program. (DDP) I About I Announcements
Daily update Other formats: Screen reader I ASCII
Statistical releases
Ilome I Economic resmch and data
Accessibility I Contact Us
Last update: November 28, 2008
http://www.federalreserve.gov/Releases/HI5/update/ 12/1/2008 10
Bill Lockyer, State Treasurer 1%
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
Date
Daily
YOM
Quarter to
Date YhW
Average
Maturity
in k
11/10/2008
2.63
2.69
249
11/11/2008
2.63
2.69
249
11/12/2008
2.62
2.69
249
11/13/2008
2.61
2.69
247
11/14/2008
2.60
2.681
248
11/15/2008
2.60
2.68
248
11/16/2008
2.60
2.68
248
11/17/2008
2.58
2.68
243
11/18/2008
2.57
2.68
241
11/19/2008
2.55
2.67
244
11 /20/2008
2.55
2.67
244
11/21/2001
2.51
2.67
242
11722/2008
2.51
2.67
242
11/23/2008
2.51
2.66
242
Lo;
29.:
Corporate Bond:
0.57%
Commercial Par
6.63%
LAW Performance Report
Quarter ending 9/30/08
Apportionment Rate: 2.77%
Earnings Ratio: 0.00007595384447805
Fair Value Factor: 0.999137696
PMIA Average Monthly Effective Yields
Oct 2008 2.709%
Sep 2008 2.774%
Aug 2008 2.779%
Pooled Money Investment Account
Portfolio Composition
$63.7 Billion
10131 /08
Reverses
-0.15% Treasuries
1d dF0/
i ime ueposits CDs/BNs
13.58% 8.64%
ortgages
1.70%
Agencies
24.99%
11
City of La Coma
Cash Flaw
Budget to Actual
October 31, 2008
Cash Basis
Account
Budget
10/08
Actual
10108
Accmal/
Adjustment
Adjusted Total
10/08
Variance
Over Under
Notes
ProPely Tax/ Tax Increment
Transient Occupancy Tax
Sales Tax
-
265.743
509,738
163,533
225,596
512,918
163,533
226,596
512,918
163,533
(39,147)
3,181
Supplemental Property Tax
Received $6611, from DSUSD &
IID for captal improvement
Other revenue$
Revenues
2863,125
3,638.608
4143,120
5,046,167
4,143120
5,046,167
1,279,995
1,407,581
Projects, RCTD funding $318k,
$1141,devUoperdeposits
Expenditures
Salaries & Fringe Benefits
Other expenditures
Subtotal
1,008.992
3,443.862
1,194,227
4,019.840
1,194,227
4,019840
185,235
575,978
3pay ponds
Paid two months Police invoices
4.452,854
5,214.067
5,214,067
761.213
351,248
533,260
4.675,048
496503
4,675,048
4%,503
4,323,800
36,757
Redevelopment Agency
Debt Service(Poncipal/InteresVPass Through)
Subtotal
Purchase of land $41in
Reversals of Maim, pass-thrus
e8d508
5,171,551
5,171,551
6287043
2,941,679
2941,679
2,941,679
Capital Projects
Total Expenditures
8,279,041
13,327,297
13,327,2975,048,256
Net RevenuesfExpenEllures
4,640,435
8,281,130
NOTE 1
Expenditures are budgeted at 8 34% per month
Difference between actual and budget
(Underspenp
DEPARTMENT
Overspent
Notes
GENERAL GOVERNMENT
77,948
CITY CLERK
1,905
COMMUNITY SERVICES
(7,222)
FINANCE
4,546
BUILDING & SAFETY
521.577
Faclites Rent$533k
PUBLIC SAFETY
469,683
2 months Police invoices
PLANNING
(45,391)
PUBLIC WORKS
274,863
SUBTOTAL - GENERAL FUND
748,183
Library
Gas Tax
Federal Assistance
JAG Grant
Slesf(Cops) Revenue
Indian Gaming
Lighting & Landscaping
RCTC
Development Agreement
CV Violent Crime Task Force
(257)
AS 939
_
Quimby
(2,919)
Infrastructure
Proposition 1 B
South Coast Air Quality
(2,219;
Transportation
_
Parks & Recreation
Civic Center
Library Development
Community Center
Street Facility
Park Facility
Fire Protection
Arts In Public Places
(16,019)
Interest Allocation
Equipment Replacement
(51,392)
Information Technology
(26,286)
Park Maintenance Facility
11,212
SilverRcck Golf
95,557
SlverRock Reserve
-
LO Public Safety Officer
(167)
Finance Authority
(1,316)
Capital Improvement
Total
754,377
W
INVESTMENT ADVISORY BOARD
Meeting Date: December 10, 2008
TITLE:
Pooled Money Investment Board Report
for September 2008
BACKGROUND:
Correspondence
& Written Material Item C
The Pooled Money Investment Board Report for September 2008 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
M. Falconer, Finance Director
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF SEPTEMBER 2008 WITH SEPTEMBER 2007
(DOLLARS IN THOUSANDS)
SEPTEMBER 2008 SEPTEMBER 2007 CHANGE
Average Daily Portfolio
$
65,286,969
$
58,058,289
$
+7,228,680
Accrued Earnings
$
148,862
$
248,957
$
-100,095
Effective Yield
2.774
5.231
-2.457
Average Life -Month End (In Days)
214
207
+7
Total Security Transactions
Amount
$
46,707,550
$
29,626,463
$
+17,082,087
Number
959
614
+346
Total Time Deposit Transactions
Amount
$
3,172,000
$
4,526,000
$
-1,364,000
Number
161
223
-62
Average Workday Investment Activity
$
2,375,217
$
1,797,445
$
+577,772
Prescribed Demand Account Balances
For Services
$
774,191
$
326,536
$
+447,665
For Uncollected Funds
$
176,283
$
202,900
$
-26,617
1
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
SEPTEMBER 30, 2008
DIFFERENCE IN
PERCENT OF
PERCENT OF PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$ 2,748,220
4.27
+1.85
Bonds
0
0.00
0
Notes
2,258,286
3.51
+0.65
Strips
0
0.00
0
Total Government
$ 5,006,506
7.78
+2.50
Federal Agency Debentures
$ 10,803,204
16.79
-0.36
Certificates of Deposit
12,557,680
19.62
+2.59
Bank Notes
500,000
0.78
-0.46
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
2,476,811
3.85
-6.21
Time Deposits
8,861,500
13.78
-0.39
GNMAs
152
0.00
0
Commercial Paper
9,248,490
14.38
+0.46
FHLMC/Remics
1,091,971
1.70
0.00
Corporate Bonds
378,202
0.59
-0.05
AB 55 Loans
11,213,087
17.43
-0.20
GF Loans
2,576,800
4.01
+1.97
Reversed Repurchases
-393,000
-0.61
-0.15
Total (All Types)
$ 64,321,403
100.00
INVESTMENT ACTIVITY
SEPTEMBER 2008 AUGUST 2008
NUMBER AMOUNT NUMBER AMOUNT
Pooled Money 959 $ 46,707,550 501 $ 24,205,093
Other 16 53,774 8 38,325
Time Deposits 161 3,172,000 198 4,515,000
Totals 1136 $ 49,933,324 707 $ 28,758,418
PMIA Monthly Average Effective Yield 2.774 2.779
Year to Date Yield Last Day of Month 2.780 2.783
q
Pooled Money Investment Account
Portfolio Composition
$64.3 Billion
9/30/08
Corporate Bonds
0.59%
Commercial Papei
14.38%
Reverses
-0.61% Treasuries
7.78%
s
>gencies
20.64%
Ns
i ime ueposas cv.OV%
13.78%
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item D
Meeting Date: December 10, 2008
ITEM TITLE:
November 25, 2008 Joint Meeting Minutes
with the City Councl
BACKGROUND:
The minutes from the joint meeting with the City Council have not been approved
and will be distributed at the next scheduled Investment Advisory Board meeting.
Staff has included the Economic Development and Marketing Plan which was
discussed at the joint meeting.
RECOMMENDATION:
Information item only.
'4f
John M. Falconer, Finance Director
city of
2008-2009
Economic Development Plan
,,, 'Ii 1
4000
City of La Quinta
2008-2009 Economic Development Plan
Executive Action Summary
The City of La Quinta is embarking on its thirteenth year of economic development initiatives, which
are derived from the annual Economic Development Plan ("ED Plan"). Presented for the first time this
year, this Executive Action Summary offers an implementation strategy to fulfill the numerous objectives
of the ED Plan and outlines the steps being taken to ensure the economic vitality of the City of La
Quinta. In essence, it provides the framework for the year's upcoming economic development implementation
activities. The ED Plan's comprehensive policy document, first adopted in 1996, is attached for reference
and details the City's vision and direction for its economic development activities. It also provides more
detail on the City's rationale for an economic development plan, lists ED Plan participants, and outlines
La Quinta's resources, opportunities, liabilities, and needs as well as a business plan.
To better understand La Quinta's economic development initiatives, it is important to be familiar
with the community's profile — the "facts and figures" that would lead potential retailers, restaurants,
hotels, and businesses to locate here:
• Population as of January 1, 2007 - 42,092
• Population projections: 2010 - 50,000:
2015 - 60,000; 2020 - 70,000
Median age is 36
• Median household income is $67,754
• Total number of households in La Quinta in
2007 - 14,491
• Total number of housing units in 2007 -
20,269 (18,330 SFD - 90%)
• Median new home price - $554,747; median
home price - $370,045
• Retail sales in 2006 reached $742.6 million
(23% increase over 2005)
• La Quinta has an assessed valuation of
$11.9 billion (FY 2007)
• 2006 total hotel room sales for the City of
La Quinta amounted to $46.7 million
• Permit valuation: $154.4 million in 2007;
$272.2 million in 2006; $376 million in 2005
(a new record high); $359 million in 2004
• La Quinta has the highest daily ($122.40) and
annual ($44,676) per room revenue in the
Valley and is home to the largest hotel in the
Coachella Valley - the La Quinta Resort & Club
(over 800 guest rooms)
2007 traffic counts (2-way, average daily trips):
Washington Street @ Highway 111 - 50,019;
Washington Street @ Fred Waring Drive - 50,407;
Highway 111 @ Adams Street - 41,302;
Jefferson Street @ Avenue 48 - 28,045
Characteristics of La Quinta's 5, 10, and 15 mile rings
from Hwy 111/Adams Street:
5 Mile Ring
10 Mile Ring
15 Mile Ring
POPULATION
166,084
262,336
342,782
HOUSEHOLDS
58,118
93,116
120,591
MEDIAN AGE
34.3
35.5
35.1
AVG HH INCOME
$77,262
$76,331
$73,402
2008-2009 Implementation Activities and Target Areas
BUSINESS DEVELOPMENT
POLICY: Support existing La Quinta businesses through a variety of economic development and marketing efforts.
ACTION ITEMS
✓ Continue to work with the La Quinta Chamber of Commerce on business retention efforts and
business support.
✓ Implement "Business Development" efforts as part of the City's Marketing Plan to support La
Quinta businesses:
• Continue trade show/special event participation
• Continue shop/dine advertising and local television advertising
• Continue efforts to attract residents and visitors to the Village area (via events, banners, and signage)
• Create a shopping map
• Create a business directory for the City's website
• Produce a "Things To Do in La Quinta" master calendar
• Initiate cooperative advertising with Village businesses
• Create tourism website with specific messages and information on where to shop and dine
in La Quinta
• Commission a market study with a focus on "future trends" in order to gain insight on the
next generation of consumers and attract suitable businesses to La Quinta
• Explore cooperative programs with regional organizations such as CVEP and Riverside
County (trade shows and advertising opportunities)
✓ Implement tourism efforts, public relations activities, and cooperative programs with the CVA and
La Quinta hotels with the goal of attracting more visitors to stay, play, shop, and dine in La Quinta.
HIGHWAY 111 CORRIDOR
POLICY: The City will encourage the development of commercial, service commercial, office, lodging, theater,
and light industrial uses within the Highway I I I Corridor to diversify the community's economic base.
ACTION ITEMS
J Work with Highway 111 Corridor property owners to facilitate building and site reuse opportunities
to accommodate evolving retail trends and the reuse and/or expansion of existing retail facilities and
auto dealers.
✓ Explore opportunities to develop a mixed -use `lifestyle" center that combines entertainment venues
with retail and residential uses in the Highway I I I Corridor.
✓ Continue to market Highway II I Corridor development opportunities to retail, hospitality and
family restaurant/entertainment developers and operators in conjunction with property owners.
✓ Market Highway 111 Corridor development opportunities to auto dealers, and assist with retention
and expansion efforts.
WASHINGTON STREET CORRIDOR
POLICY. The City will work with the various property owners and stakeholders to facilitate development of
the Centre Pointe project at the southeast corner of Miles and Washington.
ACTION ITEMS
✓ Work with Centre Pointe Development and adjoining property owners to draft a new land use plan
for the undeveloped segments of this property not owned by Eisenhower Medical Center.
THE VILLAGE
POLICY. The City will explore strategies to attract more businesses, residents and visitors to the Village at
La 2uinta (the Citys down town area).
ACTION ITEMS
✓ Implement the Village Signage program contained within the 2007-08 Capital Improvement Plan
to guide patrons to Village businesses.
✓ Explore opportunities to develop urban infill residential uses in and near the Village to increase
demand for the commercial and office uses.
✓ Continue to explore commercial retail development opportunities.
✓ Update the Village Design Guidelines, General Plan policies, Zoning Codes and develop a strategic
plan specifically for the Village area.
✓ Continue monitoring parking capacity and location studies that identify current and future parking
demand, and the means and locations to accommodate future parking demands.
ANNEXATION FEASIBILITY
POLICY. The City will plan for future retail development to serve future growth in Sphere of Influence
Planning Areas 1 and 2.
ACTION ITEMS
✓ Finalize a strategic plan that will address land use, infrastructure needs, and fiscal recommendations
that guide future annexation of land in Planning Area I and 2.
✓ Continue efforts with the County of Riverside to identify how the City may assume some of the
current redevelopment authority and revenue as Planning Area I and 2 properties are annexed into
the City of La Quinta.
✓ Evaluate the use of non -property tax based revenue vehicles in order to accommodate annexation requests.
RESORT/HOSPITALITY OPPORTUNITIES
POLICY: The City will implement the development programs for the boutique and resort hotels at
SilverRock Resort and explore other opportunities for resort hospitality development.
ACTION ITEMS
✓ Continue to implement and monitor the Disposition and Development Agreement and Development
Agreement with Lowe Enterprises for boutique hotel, resort hotel, casitas, and retail development
within SilverRock Resort.
✓ Coordinate and facilitate the development process for the boutique hotel at SilverRock Resort.
✓ Solicit proposals from landowners and developers to jointly develop additional resort and hospitality
uses throughout the City.
✓ Continue cooperative program with La Quinta hotels on Time Warner Cable's Journey TV
(on demand travel channel).
✓ Explore and initiate a cooperative marketing program with Lowe Enterprises in relation to
SilverRock Resort, focusing on a main portal (website) and site signage.
RECREATION OPPORTUNITIES
POLICY: The City will explore recreational opportunities and develop recreational uses for residents and visitors
to enjoy. Areas of particular emphasis will include golf, trail improvements, a regional trail system, parks,
health and fitness programs as well as arts, cultural and educational experiences.
ACTION ITEMS
✓ Continue with and enhance Arnold Palmer Classic Course marketing:
• Design new artwork for billboards; continue rotator billboard advertising Valley -wide
• Take full advantage of being a home course of the Bob Hope Chrysler Classic in 2008-2009
marketing and advertising efforts
• Continue with print advertising
• Continue to research and implement public relations opportunities with positive messages
• Update www.SilverRock.org website with new photos and additional information
• Produce new SilverRock television spots to air primarily in the local market
✓ Complete the site planning and facilities design processes for the permanent clubhouse at
SilverRock Resort.
✓ Start construction on the permanent clubhouse at SilverRock Resort.
✓ Complete preliminary design of the second golf course at SilverRock Resort.
✓ Implement completed Community Services Master Plan.
✓ Continue to work on trails plans for the top of the Cove and the White Water Channel.
✓ Explore land acquisition opportunities to provide additional park facilities.
HOUSING
POLICY: The City is committed to develop workforce affordable housing to ensure housing opportunities to
support existing businesses and business future expansion.
ACTION ITEMS
✓ Monitor CORE's lease -up activities at the Vista Dunes Courtyard Homes. Pursue green building
and smart affordable housing recognition and awards.
✓ Conclude an affordable housing agreement with the Shovlm Companies for the Highway I I I/Dune
Palms Road property.
✓ Purchase additional property for future affordable housing development.
✓ Complete site planning activities for:
• Washington Street Apartments and adjoining property
• Dune Palms Road/Westward Ho properties
✓ Conclude mixed use development site planning activities for City -owned property located at
Avenue 52 between Avenida Bermudas and Desert Club Drive.
✓ Identify rehabilitation and/or redevelopment opportunities involving existing multi -family
residential units.
✓ Monitor the implementation of the Affordable Housing Agreement with Coachella Valley Housing
Coalition (CVHC) for the land sale and development of 218 affordable multi -family rental
dwellings at the Dune Palms Road/Avenue 48 property.
✓ Sell additional units in the La Quinta Housing Program to very low-income households.
Contents of Economic Development Plan °Policy° Document
This document is organized as follows:
i► Introduction
■ Rationale for this Economic Development Plan
■ Participants in Formulating and Implementing this Plan
2) Resources, Opportunities, Liabilities and Needs
■ Community Profile
■ Key Assets
■ Liabilities
■ Projected Market Demand
■ Projected City/Redevelopment Agency Financial Resources
for Economic Development
■ City/Agency Real Estate Assets
■ Infrastructure Needs/City Capital Improvement Program
s► Business Plan
Mission Statement
Implementation Policies
Fiscal Year 2007-08 Accomplishments
a) Highway 111 Corridor
b) The Village
c) Annexation Feasibility
d) Resort/Hospitality Opportunities
e) Housing
f) Business Development
g) SilverRock Resort Marketing
2008-09 Implementation Activities and Target Areas
h) Highway 111 Corridor
i) The Village
j) Annexation Feasibility
k) Resort/Hospitality Opportunities
1) Recreation Opportunities
m) Housing
n) Business Development
o) SilverRock Resort Marketing
APPENDIX
Exhibit A: City/Agency Real Estate Assets Map
Section
11. 1' . . 1- - ..
Strategies and Tasks to Stimulate Private Investment in La Quinta
The City of La Quinta is embarking on the thirteenth year of implementing
economic development initiatives. To date the City's efforts have yielded major
retailers, upscale restaurants, a Homewood Suites and Embassy Suites, and the
new resort and golf venues at SilverRock Resort. The focus for the coming fiscal
year is five fold. The first two involve SilverRock Resort. The Redevelopment
Agency will continue to implement and monitor the Disposition and Development
Agreement that will lead to the development of a boutique hotel, a feature hotel
and resort retail village. The Agency will also complete the design and
construction of the on -site infrastructure at SilverRock, as well as initiate design
and construction activities related to the permanent clubhouse and preliminary
design of the second golf course. The third entails further defining the markets
the City's three commercial districts (the Highway 111 corridor, the Village and
SilverRock Resort) serve to ensure that the City's economic development
initiatives will maximize the benefits to each district. The City will take a proactive
approach to business development and support local businesses in La Quinta,
particularly those located in the Village. The fourth entails planning for future
retail uses that will serve the anticipated population growth in the unincorporated
area within the City's Sphere of Influence. The fifth is a commitment to develop
workforce affordable housing to ensure housing opportunities to support existing
businesses and business future expansion.
The City's economic development efforts will continue to maintain a balance
between securing quality revenue -generating development while preserving La
Quinta's cultural and natural features. The goal is to insure that the short-term
gain realized from achieving revenue -generating uses does not compromise the
long-term necessity for quality development that withstands the test of time.
Thus, the economic development initiatives presented in this Economic
Development Plan center on attracting and enhancing revenue -generating
enterprises, protecting open space and environmental attributes, and expanding
recreation opportunities for La Quinta's residents.
This Plan outlines a vision and direction for the City's economic development
activities. It presents the mission statement, implementation policies, projected
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
INTRODUCTION
PAGE 2
resources, and business plan the City and the La Quinta Redevelopment Agency
will follow to sustain a comprehensive economic development effort.
Rationale for this Economic Development Plan
The economic development process is the deliberate, judicious intervention in the
local economy to foster a business climate that facilitates private investment.
This process is neither exact nor fully predictable, and is more of an art than a
science. Economic development is a dynamic, ever changing endeavor because
it must constantly accommodate the evolving characteristics of the market place.
Thus, the City annually reviews and updates this Plan to ensure that it reflects
and responds to current market conditions, and equally as important, the
community's collective vision as to how to accommodate these conditions.
Finally, this enterprise parallels the activities associated with building a city; thus
this Plan embraces a long-term vision rather than a short-term perspective.
In 1996, the City of La Quinta adopted the first Economic Development Plan that
defined the community's desires for future development, and presented a
business plan to guide the City's economic development initiatives. The City then
embarked on a planned, pro -active economic development effort for the following
reasons:
Capture Forecasted Growth for the Coachella Valley
A variety of market studies forecast continued growth for the Coachella Valley
during the next decade. This is demonstrated by the new major retailers that
have located along the Highway 111 corridor during the past year.
Due to its prime location and the expanding population of the Eastern Central Coachella
Valley the City is positioned to capture a sizable portion of the projected commercial,
resort, and residential development through the business expansion and recruitment
efforts delineated in this Economic Development Plan.
Balance Municipal Revenue and Expenditure Needs
The City's primary revenue resources are transient occupancy and sales taxes.
During Fiscal Year 2007-08 these revenues comprised 34% of the City's total
General Fund revenue; sales tax revenue income generated approximately 21%
of total General Fund revenue and transient occupancy tax revenue will generate
approximately 13% of total General Fund revenue. Secondary resources are
license/permit fees and property tax revenue. A majority of the City's property tax
revenue, however, is allocated to the Redevelopment Agency. Approximately
80% of the land area within the City's corporate boundaries is in one of two
redevelopment project areas. Combined, these resources maintain existing and
provide new services to La Quinta's residential and business communities.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
INTRODUCTION
PAGE S
Resort and commercial development generates a majority of the municipal
revenues received by the City.
The City and Redevelopment Agency must continue to enlarge the City's revenue base
in order to enhance and expand the quality of municipal services La Quinta residents
expect.
Judiciously Allocate Municipal Resources
Like any business, the City continually balances the allocation of financial
resources between service costs and infrastructure investment. To prudently
accomplish this task, the City annually implements a comprehensive strategic
planning effort that meshes this Economic Development Plan with a Five -Year
Municipal Service Resource Allocation Plan, a Five -Year Capital Improvement
Program, Annual City/Agency Financial Management Strategies, and Annual
City/Agency Operating Budgets. This strategic planning effort is focused on and
designed to insure that the City has financial resources to provide future
municipal services, and address future infrastructure and public facility needs.
This Economic Development Plan identifies economic development investment
strategies and initiatives that are subsequently funded through the annual
City/Redevelopment Agency Capital and Operations budgets.
Participants in Formulating and Implementing this Plan
This Economic Development Plan delineates initiatives that implement the
community's vision of its desired destiny. It outlines policies, activities, and
resources the City will pledge to guide and/or influence future development
decisions. Thus, the primary participants in formulating and implementing this
Plan are the residential and business communities that define La Quinta. When
first developed, the City sponsored a series of community forums to solicit
community input. The City continues to consult with these communities during
the Plan's implementation phases. For example, the City solicited input from
residents regarding desired businesses in La Quinta, and involved them in the
development of a Community Services Master Plan.
The City Council governs the formulation and implementation of this Plan.
Council Members bring forth constituent ideas and needs, and assist with defining
the issues, mission, strategy, and overall policies that guide implementation
efforts. Finally, City staff plays a strategic role in this endeavor. Staff is charged
with the responsibility to monitor market conditions, solicit community input,
interface with existing and new users, implement programs and initiatives, and
monitor achieved results.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
Section
200&W Economic Development Plan
Strategies and Tasks to Stimulate Private Investment in La Quinta
This section presents the background data that was used in developing the
Business Plan presented in Section 3; it includes a summary of key assets,
presents an overview of projected market demand, delineates projected
City/Agency resources, and outlines infrastructure needs.
Community Profile
The City of La Quinta is located in the Eastern Central Coachella Valley;
Indian Wells and Palm Desert border the City to the west, Indio to the east,
and unincorporated communities to the north and south. Located
approximately two miles south of Interstate 10, primary access is via State
Highway 111, Washington Street, and Jefferson Street. Per the State of
California Department of Finance, the City's 2007 estimated population was
41,092. Per Wheeler's 2007/2008 Edition of "Demographic Profiles of the
Coachella Valley," La Quinta has a median household income of $67,754.
Only Indian Wells and Rancho Mirage had higher median household
incomes. In the context of the Coachella Valley, La Quinta also enjoys an
emerging population of new families with an average household size of 2.85
persons; 64% of La Quinta's population is under 44 years of age (the median
age is 36.4), and persons over the age of 65, historically the most recognized
age group in the Valley, comprise only 13.4% of La Quinta's population.
Claritas Incorporated, a demographic research firm, estimates that 166,084
persons live within a five mile radius of La Quinta, 262,336 live within a 10
mile radius, and 342,782 live within a 15 mile radius. Within the same
geographical areas, the estimated average household income was $77,262,
$76,331, and $73,402, respectively. During 2006, total taxable sales within
the City of La Quinta were $754 million. According to the City of La Quinta's
2007 Comprehensive Annual Financial Report, the City's assessed valuation
for 2007 was $11.9 billion.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
RESOURCES, OPPORTUNITES AND MARKET PROFILE
PAGE S
Key Assets
Review of the City's physical characteristics and discussions with the residential
and business communities identify the following key community assets:
• an educated, dedicated, and highly motivated residential and business
community that share a long history of working in concert to provide a stable
environment that supports economic development efforts;
• an international reputation for resort and golf amenities resulting from the La
Quinta Resort & Club, PGA West, Rancho La Quinta, The Tradition, The
Quart', The Hideaway, Madison Club, Griffin Ranch, La Quinta Country Club,
and SilverRock Resort;
• the City hosts renowned golf tournaments such as the Bob Hope Chrysler
Classic, which has helped earn it the title of "America's Ultimate Golfing
Destination" by the acclaimed Robb Report;
• the Highway 111 commercial corridor, which is nearing build -out, features a
few prime vacant properties of sufficient size to accommodate development
that will serve the Eastern Coachella Valley and will generate significant
financial returns for both the City and Agency;
• a market area with one of the highest per capita incomes in the Coachella
Valley;
• the Village of La Quinta, a commercial center nestled in the Santa Rosa
Mountains, that offers a setting that is unparalleled in the Coachella Valley;
• La Quinta's commerce, art and cultural heritage as represented by the La
Quinta Chamber of Commerce, La Quinta Arts Foundation and La Quinta
Historical Society, that supports art and cultural activities attracting patrons
from California and the greater southwest;
• the 525 acre Agency -owned SilverRock Resort golf and resort property, home
to the Arnold Palmer Classic Course which Golf Magazine selected as one of
the "top ten new golf courses that you can play," and which hosted its first Bob
Hope Chrysler Classic in January 2008;
• a 20,000 square -foot, state-of-the-art public library and a newly expanded
8,400 square -foot museum which offer educational and cultural resources;
• the Lake Cahuilla Recreation Area which provides water sport and other
outdoor recreation opportunities;
• continued steady residential development and sales activity which generates
a significant number of households to support retail, recreation, and service
commercial users;
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RESOURCES, OPPORTUNITES AND MARKET PROFILE
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a highly motivated City workforce that understands the needs of the business
community and the need to process required City approvals within a short
time frame;
resources that the City/Agency can dedicate to economic development
investment; and
• Availability of professional and medical office space including the addition of
the Eisenhower Medical Center facility at Washington Street and Seeley
Drive.
Liabilities
Though the assets far outweigh the liabilities, there are limitations that the City
must account for when implementing its economic development initiatives; these
include the following:
competition between Coachella Valley communities to provide financial
incentives to major developers and users, which significantly influence their
location decisions;
• competition for golf and resort patrons with other Coachella Valley cities who
are improving their public golf amenities in order to attract new, and expand
existing, resort and hotel uses; and
evolving retailing trends that render existing retail centers obsolete while
potentially decreasing the need for new retail centers.
Projected Market Demand
The Agency commissioned Economic Research Associates (ERA) to conduct a
new market study to assess near- and mid-term trends that will influence
economic development efforts. The Market Study specifically focuses on market
conditions and development opportunities within the City's main commercial
corridors (Highway 111, The Village, and SilverRock Resort) and within the
Sphere of Influence area.
In April 2006, ERA was commissioned to conduct an Overview Analysis of
Market Opportunities. This document is on file with the City of La Quinta. In lieu
of another comprehensive market study, a refined market analysis will be
considered for Fiscal Year 2008-2009 to shed light on the next generation of
consumers and which businesses La Quinta should target.
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Projected City/RedevelopmeM agency Financial Resources for Economic
Development
As part of its ongoing resource management effort, the City annually evaluates
City/Redevelopment Agency financial resources and identifies those resources
that can be pledged to economic development initiatives. During development of
the 2008-09 Fiscal Year Budget staff will specifically identify funds available for
economic development initiatives. These funds are basically one-time resources
that will most likely not be renewed when expended.
City/Agency Real Estate Assets
Since 1983, the City and Redevelopment Agency have accumulated real estate
assets as a result of major infrastructure projects or as part of the Agency's
affordable housing efforts. Exhibit A, in the Appendix of this Plan, presents a map
of the real estate assets owned by the City or Redevelopment Agency.
City/Redevelopment Agency real estate assets currently available for economic
development include SilverRock Resort, owned by the Redevelopment Agency,
the City's holdings located at the top of the Cove, and several properties in the La
Quinta Village including a municipal parking lot and property adjoining the La
Quinta Community Center and Park.
Infrastructure Needs/City Capital Improvement Program
As part of the annual strategic planning effort the City conducts a comprehensive
review of the community's infrastructure needs. The City then addresses these
needs through the Five -Year Capital Improvement Program. This Program
identifies both current year and projected five-year capital improvement needs
and resources, and delineates an annual funding schedule for specific
infrastructure projects. This Economic Development Plan is integrated with the
Capital Improvement Program (CIP) to ensure that the infrastructure impediments
to specific economic development projects are addressed, or where possible,
economic development project implementation activities mitigate site -specific
capital improvement needs.
Notable CIP projects include: SilverRock Resort Infrastructure, Clubhouse, and
Second Golf Course; Village Signage Program; Enhanced Pedestrian Crossings
in the Village; Phase III Highway 111 Improvements; Golf Cart Program; Adams
Street Bridge; and various traffic signals.
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April 15, 2008 ECONOMIC DEVELOPMENT PLAN
Section
2008-09 Ecommic Development Plan
Strategies and Tasks to Stimulate Private Investment in La Quinta
In order to proceed with implementation activities, a business plan is required that
presents a mission statement describing the intended outcome the community
wishes to achieve, and the overall policies that will guide implementation
activities. Finally, specific target areas and implementation efforts are detailed.
Mission Statement
The mission statement formulated for this economic development effort is as
follows:
The mission of the Economic Development effort is to actively support the development
and expansion of existing businesses, and to proactively recruit sustainable revenue -
generating uses that diversify and expand the City's economic base, offer a variety of
products and services, increase employment opportunities, enhance City/Agency fiscal
resources, preserve and enhance La Quinta's unique environment, and contribute to the
quality of life for La Quinta residents.
Implementation Policies
The following policies guide the City's Economic Development implementation
efforts. They address resource and staffing commitments, annexation strategies,
use of City assets, and refinement of City processes. These policies guide City
staff as they pursue implementation initiatives.
Active Participation in Economic Development
The City will actively implement economic development initiatives by committing
resources to market development opportunities through direct contact with
property owners, commercial and industrial enterprises, resort and lodging
operators, developers, and the business community.
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Financial Resources Commitment
The City and Redevelopment Agency will annually dedicate funds to support
economic development and infrastructure improvement activities.
Business Development
Support existing La Quinta businesses through a variety of economic
development and marketing efforts. A specific objective will involve attracting
more people to The Village at La Quinta in an effort to support the businesses
located in this section of the City..
Economic Base Diversification
Emphasis will be placed on pursuing opportunities that will dynamically enhance
and diversify La Quinta's economic base to include a balance of retail, recreation,
and resort uses.
City/Agency Private Project Investment
City/Redevelopment Agency financial investment will be primarily limited to
underwriting infrastructure and municipal fee costs, obtaining operating and use
covenants, and rehabilitating/refurbishing older commercial structures and
centers for projects that enhance overall City development and growth. Assisted
projects must feature enhanced design and landscaping amenities, and
enhanced building and site maintenance requirements to insure these amenities
are maintained for the life of the development.
City/Agency Return on Investment
When considering City/Redevelopment Agency investment in commercial, resort
or office development projects, the City/Redevelopment Agency must achieve a
10% to 15% return on the City/Agency investment by the fifth year of operation.
Development generated revenue included in this analysis is sales tax, transient
occupancy tax and property tax revenue; City development permit and impact fee
revenue may not be included as development project revenue. Further, City
service costs must first be deducted from development generated revenue. The
City/Redevelopment Agency investment should be fully repaid within a ten-year
period, with every attempt to achieve repayment within a five to eight -year period.
Private Project Investment - Financial Need
For commercial, industrial, office or resort development projects that request
City/Redevelopment Agency financial investment, the City/Redevelopment
Agency must find that off -site infrastructure improvement costs, municipal fee
costs, and/or development or rehabilitation costs are so excessive that the project
warrants public investment to underwrite some of these costs in order to generate
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April 15, 2008 ECONOMIC DEVELOPMENT PLAN
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sufficient returns to attract private investment. Further, if City/Redevelopment
Agency financial investment is targeted towards obtaining operating and use
covenants, the City/Redevelopment Agency must find that the desired user
achieves the City/Agency Return on Investment parameters described above and
generates additional employment, retail and/or recreation opportunities for La
Quinta residents.
Reuse of Vacant Commercial Facilities
The City/Redevelopment Agency will proactively work to ensure the reuse of
commercial facilities that remain vacant for six months or more. These activities
will include working with property owners and tenants to identify reuse
opportunities, identify site and building improvement needs, and facilitate
user/developer recruitment efforts.
Land Use Planning
In order to maintain, protect, and enhance municipal fiscal balance the City
should carefully evaluate the fiscal effect of land use planning. A key issue facing
the City is conversion of Tourist Commercial Zoning to Residential and Resort
Residential land uses. Prior to consideration of any request to convert land uses a
detailed fiscal analysis and fiscal mitigation program shall be required.
Highway I II Corridor
In order to enhance commercial opportunities the City/Redevelopment Agency
has secured two major retail anchors for the east end of this corridor. In doing so,
this corridor will have major demand generating anchors located in the corridor's
west, middle and eastern sectors. The City/Redevelopment Agency will work on
filling remaining vacant parcels and assisting property owners with rehabilitating/
redeveloping older, obsolete retail centers.
Environmental Compatibility
In order to maintain, protect and enhance La Quinta's unique physical environment,
all new development projects will be reviewed with added emphasis on their
compatibility with their environmental setting to insure preservation of La Quinta's
unique natural desert and mountain landscape.
Regional Transportation Opportunities
The City will pursue joint efforts with regional agencies that facilitate the
expansion of rail and air transportation services, including the Jacqueline
Cochran Regional Airport, to support the transportation needs of La Quinta's
resort, commercial, residential, and other uses.
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Annexation Opportunities
The City may pursue annexation opportunities, as requested, that are
economically sustainable, enhance the City's economic future, provide workforce
affordable housing opportunities, and protect environmentally sensitive areas that
are crucial to the La Quinta experience. These will include properties that expand
resort and golf course development opportunities, accommodate commercial,
industrial, and transportation uses, protect environmentally sensitive areas, scenic
vistas, enhance equestrian opportunities, and provide for a variety of housing
types. The City will also review potential impacts on current residents and seek
ways to mitigate impacts, if they exist. Prior to any annexations in Planning Areas
1 and 2 a detailed fiscal analysis and Plan for Services shall be required. Future
annexations should be revenue -neutral or positive to ensure long-term fiscal
balance.
Municipal Properties
The City will pursue the timely sale and/or development of all City/Agency-owned
surplus property with uses that maintain, protect and enhance the environment
while achieving a return on the initial City/Agency investment.
Recreation Opportunities
The City will explore recreational opportunities and develop recreational uses for
residents and visitors to enjoy. Areas of particular emphasis will include golf, trail
improvements, a regional trail system, parks, health and fitness programs as well
as arts, cultural and educational experiences. The City will encourage alternative
transportation and healthy lifestyles. Efforts will be made to develop a
comprehensive trail system that links the recreation amenities at Lake Cahuilla
and in the Santa Rosa Mountains with the City's residential and resort
communities. The City will continue its participation in regional planning efforts to
complete a trail system between La Quinta and Palm Desert. The City will work
with the Coachella Valley Community Trails Alliance (CVCTA) to develop a trails
plan for the top of the Cove. Coachella Valley Recreation and Park District
(CVRPD) is conducting a feasibility study of a dual purpose trail along the bank of
the White Water Channel.
Stneetscape Improvements
Future major arterial streetscape and median improvements will be designed to
impart a sense of place and a feeling unique only to La Quinta so residents,
visitors and other travelers will experience a sense of arriving at a special
destination when traveling to, or through La Quinta. Highway 111 improvements
will be made in 2008-2009, and an entry statement will be designed for the City's
western entrance.
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Highway 111 Corridor Land Use Diversification
The City will encourage the development of commercial, service commercial,
office, lodging, theater, and light industrial uses within the Highway 111 Corridor
to diversify the community's economic base.
Education
The City recognizes the value of enhancing educational opportunities in the
Coachella Valley, and therefore, has supported efforts to expand the California
State University, San Bernardino — Palm Desert Campus via a total contribution
of $1,000,000, with a third installment of $250,000 paid this past fiscal year.
Staff Development
City staff will continually work to refine and improve their skills as they relate to
fulfilling the mission of the Economic Development Plan and program while
reinforcing the perspective that the City's economic survival depends on City
staffs ability to serve the public in a courteous, efficient and knowledgeable
manner.
Prepare New and Update Existing Information Documents
On an ongoing basis, City staff will prepare new, and update existing, promotional
and community information documents for circulation to potential users and
developers. Focus will be on documents providing socio-economic data as well
as commercial activity reports and public information pieces.
Fiscal Year 2007-08 Accomplishments
The Business Plan presented in the 2007-08 Economic Development Plan identified
specific target areas and activities to accomplish during the fiscal year. The following
summarizes the accomplishments by target area, as of March 2008.
Highway 111 Corridor
Highway 111 Commercial Corridor. Super Wal-Mart, Costco, and Sam's Club
now provide the City with three main retail anchors that provide added revenue,
employment opportunities as well as convenient shopping. The arrival of Cost
Plus World Market, Goodwill, Abbey Flooring, Union Bank of California, and
various specialty clothing stores also enhanced the consumer experience in La
Quinta. A variety of new dining options recently opened include: Panera Bread,
Chipotle Mexican Grill, Tortilla Express, Z Pizza, Cosi, Port of Subs, Pick Up Stix,
Wienerchnitzel, Juice It up, Coffee Bean & Tea Leaf, and Just Java Coffee.
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Auto Dealer Retention/Expansion. City staff has been working with the owner
of Torre Nissan to facilitate dealership expansion, which will allow them to stay at
their La Quinta site.
Auto Center. City and the Redevelopment Agency staff will continue working on
retention, expansion, and recruitment of auto franchises in the existing Auto
Center and other Highway 111 properties. To date, several opportunities are
currently being investigated.
MilesNVashington Property. The City's third hotel, Homewood Suites
containing 129 rooms, received their Certificate of Occupancy in July 2007. There
are also 40 casitas units that have been recently constructed.
The Village
Parking Study. Completed parking capacity and location study that evaluated
existing and future conditions. It will be used to monitor parking in the future and
assist the City in making CIP and management decisions based upon industry
standards. The study concluded there is sufficient parking in the Village for
current land uses and development patterns. Semi-annual surveys are suggested
as a method to maintain a sound understanding of future parking and related
management conditions. The City Council also directed staff to look at
pedestrian -friendly street crossings, intersections and pedestrian network within
the Village and surrounding neighborhoods.
New Development. Plaza Estado which contains retail and office space was
completed in early 2008, and Phase II of Old Town has opened. New office and
retail space is available. Additionally, Casa La Quinta, a 20-unit luxury
condominium project has commenced grading activity.
Annexation Feasibility
Annexation. Continued to work with interested property owners on
evaluating the costs and benefits of annexations. The City has prepared a
range of fiscal models that have been utilized to evaluate overall SOI fiscal
conditions as well as evaluate specific annexation proposals and
development projects. The City has participated in Riverside County Vista
Santa Rosa Task Force meetings. The City has yet to complete a strategic
land use plan for the Vista Santa Rosa SOI area (as the County of Riverside
defines a new land use plan for this area).
Resort/Hospitality Opportunities
SilverRock Resort. The Agency continues to monitor and implement a
Disposition and Development Agreement that facilitates the sale and/or lease
of nearly 61 acres to Lowe Enterprises for development of a boutique hotel,
resort hotel, casitas units, resort retail, and a black box theater. Lowe
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Housing
BUSINESS PLAN
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Enterprises is currently designing the Boutique Hotel, called "La Solana at
SilverRock" and has established an on -site sales center. They have also
begun preliminary design studies for the Resort Hotel.
Bob Hope Chrysler Classic. The Bob Hope Chrysler Classic was held at
the Arnold Palmer Classic Course in January 2008. Feedback from the Hope
Classic, pro and celebrity players, and spectators was very positive.
La Quinta Rental Housing Program. The Agency sold one home to an
existing tenant who could qualify for a first trust deed mortgage and who
saved funds for a down payment and closing costs. This sale was to a very
low-income household..
Vista Dunes Courtyard Homes. National Community Renaissance of
California (CORE) was selected to purchase the completed development and
operate this housing complex. CORE secured 4% tax credit financing to fund
some of the development costs. All 80 dwellings are slated to attain
Leadership in Environmental and Energy Design (LEED) gold or platinum
certification in April 2008. The first very low-income residents will begin
moving into the complex in May 2008.
Wolff Waters Apartments. In March 2006 the Agency concluded an
affordable housing agreement with the Coachella Valley Housing Coalition
(CVHC) that facilitates development of up to 218 apartment units on 16.3
acres of this 27.75 acre property. CVHC secured 4% tax credit, State Multi-
family Housing Program and Riverside County Affordable Housing Program
funding to supplement Agency financing. The development has started
construction and is expected to open in December 2009.
New Property Acquisition. The Agency has completed two property
acquisition efforts. The first involves a 73 unit senior apartment complex and
a 6.8 acre vacant parcel located on Washington Street, north of Darby Road.
The properties have been annexed into the City and property rehabilitation
and new development site planning and programming efforts are underway.
The Agency is also assembling a 5.12 acre site on Dune Palms Road,
southeast of Westward Ho Drive comprised of six parcels of which five were
developed with older single-family homes that will be displaced when Dune
Palms Road is widened. Since these homes are on large deep lots, the
Agency elected to initiate acquisition prior to the City's road widening efforts
so that the remaining land may de developed with affordable housing. To
date, the Agency has acquired and demolished improvements on five of the
six properties. Discussions continue with the sixth property owner, who
desires to sell their home when they find a suitable replacement dwelling.
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Highway Ill/Dune Palms Road Property. The Agency has purchased a
19.9 acre property located on Highway 111, east of Dune Palms Road that
will accommodate multi -family affordable dwellings. Site planning and
disposition and development agreement negotiations are underway to
facilitate the affordable housing development on 9.0 acres, and
commercial/auto dealer development on 9.0 acres. The remaining acreage
will be developed with a roadway that provides access from the Costco
Center to Dune Palms Road.
Business Development
Chamber of Commerce. The City's annual agreement with the La Quinta
Chamber provided support for a variety of business retention and support
services, including: networking opportunities, BizNet Symposium and Expo,
an annual business directory, mentoring programs, and business assistance
programs. The Chamber also provided advertising opportunities for and
information on local businesses via: the Gem newsletter, an annual City map,
and its website. The Chamber promoted City businesses and attractions
through its Visitor's Center as well.
City of La Quinta Marketing Plan. The City implements business support
activities via its annual Marketing Plan. Accomplishments for Fiscal Year
2007-2008 include: trade show/special event participation (International
Council of Shopping Centers, Association of Commercial Real Estate
Executives, and BizNet/Expo & Symposium); print advertising featuring
development accomplishments and "dine/shop" messages (Palm Springs Life
advertorial, ICSC program guide, Bob Hope Chrysler Classic program guide,
"shop/dine" and "come to La Quinta" ad campaign in The Desert Sun); and
television advertising via 30-second spots (aired locally via Hello Paradise
public television program). Additional accomplishments include tourism
efforts, public relations activities, and community services marketing (such as
promotion of events, quarterly recreation brochures, and completion of art
and bike maps); in addition, cooperative programs with the CVA and La
Quinta hotels, which all had the goal of attracting more visitors to stay, play,
shop, and dine in La Quinta.
The Village at La Quinta. Special emphasis has been placed on attracting
residents and visitors to The Village. Due to its location —removed from the
high volume traffic of Highway 111—The Village is a special place the City
wishes to encourage people to visit. Accomplishments in 2007-2008 include:
special events (La Quinta Arts Festival, Art Under the Umbrellas, Blues Brews
& Bar-B-Ques, Open Air Cinema, concerts on the lawn, adult egg hunt, City's
birthday picnic, Chamber car show); placement of shop/dine/play street
banners; capital projects (library and museum expansion); and work on
directional signage, which involves unique and creative Village signage to
lead people to the Village and define the area.
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SilverRock Resort Marketing:
Economic Development Project. As a City/Redevelopment project,
SilverRock Resort continues to be a priority and high profile endeavor.
Successful marketing efforts have yielded significant results in terms of
golfers, tournaments, special events and, more recently, interest in real estate
opportunities. The project will continue to be a priority for the City/RDA as the
potential for revenue generation is realized in the years to come.
Arnold Palmer Classic Course. Play continues to increase every year at
SilverRock and has reached 40,000 rounds per year. Marketing efforts are
reaching thousands of golfers which, in turn, are spreading the word to
friends and family about SilverRock being a magnificent place to play golf.
Accomplishments in Fiscal Year 2007-2008 include: advertising and
promotions (local newspapers, golf and travel magazines, regional
directories, local television, radio programs, and rotating billboards); collateral
material (rack cards, scorecards, and informational packets); community
networking and trade shows (developed working relationships/engaged in
cooperative efforts with La Quinta Chamber of Commerce, La Quinta Arts
Festival, Trilogy, Embassy Suites, and the CVA); attended trade shows on
golf, golf equipment and apparel, and recreation; internet and e-mail
marketing (sent out e-mail blasts promoting golf, golf activities, and golf
specials); secured SilverRock website link to BHCC website and golf
wholesalers websites (e.g., Palmsprings.com, Golfnow.com, bhcc.com,
mydesertsun.com, Yellowpages.com).
Bob Hope Chrysler Classic. In January 2008, the Bob Hope Chrysler
Classic was played for the first time at the Arnold Palmer Classic Course at
SilverRock. SilverRock received national exposure on The Golf Channel and
was covered locally by CBS2, KMIR, KESQ and KNBC (via its Spotlight on
the Desert program). Articles appeared in The Desert Sun, The Press -
Enterprise, and The LA Times. Total attendance is estimated at 17,000 to
18,000 (Wednesday through Saturday). Comments from the PGA pros were
very positive and patrons were impressed with the overall beauty and
condition of the course. A new course record was set at SilverRock by
winner D.J. Trahan (64).
La Solana Boutique Hotel. La Solana at SilverRock opened its sales center
in January 2008 in order to capitalize on the synergy surrounding the Bob
Hope Chrysler Classic. La Solana has received hundreds of inquires to date
from interested parties. The City has been working with Lowe Enterprises on
photography, messaging, perimeter signage, and on -site signage; and will
explore opportunities for cooperative marketing (the strategies being
considered will be part of the City's Marketing Plan for Fiscal Year 2008-
2009).
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SilverRock Resort Website. The www.mySilverRock.com website was
originally created by Lowe Enterprises for La Solana at SilverRock as a
teaser website to peak the interest of potential buyers. The website currently
displays information on the City of La Quinta, the SilverRock Resort project,
La Solana, and SilverRock golf. Ultimately, it is proposed to become the
main portal for SilverRock Resort —featuring all the amenities offered at this
resort destination.
200809 Implerrlentathm Activities and Target Areas
The City's economic development initiatives have attracted major anchor retailers to the
Highway 111 Corridor, developed the Arnold Palmer Classic golf course at SilverRock
Resort, and secured negotiations with Lowe Enterprises to develop a boutique hotel,
resort hotel, and a resort retail village at SilverRock Resort. During 2008-09, the
Economic Development focus will entail:
Working with Highway 111 Corridor property owners to facilitate building and site
reuse opportunities to accommodate evolving retail trends and the reuse and/or
expansion of existing retail facilities and auto dealers.
Exploring opportunities to develop a mixed -use "lifestyle" center that combines
entertainment venues with retail and residential uses, in the Highway 111
Corridor;
• Implementing the development programs for the boutique and resort hotels at
SilverRock Resort;
• Constructing infrastructure improvements, building the permanent clubhouse and
completing preliminary design of the second golf course at SilverRock Resort;
• Exploring strategies to increase support for local businesses;
• Exploring strategies to attract more businesses, residents and visitors to the
Village; and
• Exploring opportunities to develop urban infill residential uses in or near the
Village to increase demand for the commercial and office uses.
The Redevelopment Agency's prime focuses at SilverRock Resort will be to: (1)
facilitate the development of the boutique hotel; (2) to construct the infrastructure
improvements; (3) to complete the design activities and commence construction of the
permanent clubhouse, and (4) complete preliminary design of the second golf course.
Another Agency focus will be to generate opportunities to facilitate urban infill
development in and adjacent to the Village. Market research and discussions with the
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development community indicate that the current land values combined with current
parking requirements limit the economic feasibility of development. The Agency may
need to address this potential imbalance by facilitating land purchase and sale
transactions, and by working with the City to explore on- and off -site parking
alternatives.
During the past 13 years the City's economic development efforts have generated a
majority of the retail uses that populate the Highway 111 Corridor. This effort
established the Corridor as a prime regional retail center. However, La Quinta residents
have voiced the desire to have new pedestrian oriented entertainment venues in La
Quinta. Given the regional draw of the Highway 111 Corridor, locating a mixed use
lifestyle center in the Corridor would be appropriate. A lifestyle center typically includes
restaurants, coffeehouses, bookstores, a health club, and urban residential uses.
However, the limited vacant land opportunities within the Corridor may limit the City's
opportunities.
An equally important City economic development initiative involves planning for future
retail development to serve future growth in Sphere of Influence Planning Areas 1 and
2. Initial development and population projections indicate that these Planning Areas
may accommodate from 60,000 to 99,900 residents'. Given the distant location from
the existing commercial centers within the City, 500,000 to 600,000 leasable square feet
of local -serving commercial development could be supported in this area at buildout. As
part of the City's annexation strategic planning activities slated for 2008-09 that will
focus on Planning Areas 1 and 2, additional analysis of the retail potential will be
conducted. Further, given the residential emphasis of the current land use policies that
govern development in these Planning Areas combined with the fact that a majority of
this property is located in a Redevelopment Project Area under the jurisdiction of
Riverside County, the City would gain limited operations revenue from annexing this
area. As part of the City's strategic planning effort, new revenue sources must be
identified to insure that municipal service costs associated with these Planning Areas
are funded by municipal revenues generated within these Planning Areas.
' These numbers, derived from the 2006 Market Study and General Plan, include all areas in Planning
Areas 1 and 2, not just the Sphere of Influence
Highway I I I Corridor
Activities to Accomplish in . Continue to market Highway 111 Corridor
2008-09: development opportunities to retail,
hospitality and family restaurant/
entertainment developers and operators in
conjunction with property owners.
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Market Highway 111 Corridor development
opportunities to auto dealers, and assist
with retention and expansion efforts.
• Explore and assist in the facilitation of
building and site reuse opportunities to
accommodate evolving retail trends and the
reuse and/or expansion of existing retail
facilities.
• Explore opportunities to locate a mixed -use
"lifestyle" center that combines
entertainment venues with retail and
residential uses in the Highway 111
Corridor.
Washington Street Corridor
Activities to Accomplish in • Work with Centre Pointe Development and
2008-09: adjoining property owners to draft a new
land use plan for the undeveloped
segments of this property not owned by
Eisenhower Medical Center.
The Village
Activities to Accomplish in • Implement the Village Signage program
2008-09: contained within the 2007-08 Capital
Improvement program to guide patrons to
Village businesses.
• Explore opportunities to develop urban infill
residential uses in and near the Village to
increase demand for the commercial and
office uses.
Continue to explore commercial retail
development opportunities.
• Update the Village Design Guidelines,
General Plan policies, Zoning Codes and
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develop a strategic plan specifically for the
Village area.
Continue monitoring parking capacity and
location studies that identify current and
future parking demand, and the means
and locations to accommodate future
parking demands.
Annexation Feasibility
Activities to Accomplish in . Finalize a strategic plan that will address
2008-09: land use, infrastructure needs, and fiscal
recommendations that guide future
annexation of land in Planning Area 1 and
2.
Continue efforts with the County of
Riverside to identify how the City may
assume some of the current redevelopment
authority and revenue as Planning Area 1
and 2 properties are annexed into the City
of La Quinta.
Evaluate the use of non -property tax based
revenue vehicles in order to accommodate
annexation requests.
Resort/Hospitality Opportunities
Activities to Accomplish in . Continue to implement and monitor the
2008-09: Disposition and Development Agreement
and Development Agreement with Lowe
Enterprises for boutique hotel, resort hotel,
casitas, and retail development within
SilverRock Resort.
Coordinate and facilitate the development
process for the boutique hotel at SilverRock
Resort.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
BUSINESS PLAN
PAGE 21
• Solicit proposals from landowners and
developers to jointly develop additional resort
and hospitality uses throughout the City.
• Continue cooperative program with La
Quinta hotels on Time Warner Cable's
Journey TV (on demand travel channel).
Recreation Opportunities
Activities to Accomplish in
2008-09:
Housing
• Complete the site planning and facilities
design processes for the permanent
clubhouse
• Start construction on the permanent
clubhouse.
• Complete preliminary design of the second
golf course.
• Implement completed Community Services
Master Plan.
• Continue to work on trails plans for the top of
the Cove and the White Water Channel.
• Explore land acquisition opportunities to
provide additional park facilities.
Activities to Accomplish in • Monitor CORE's lease -up activities at the
2008-09: Vista Dunes Courtyard Homes. Pursue
green building and smart affordable housing
recognition and awards.
• Conclude an affordable housing agreement
with the Shovlin Companies for the Highway
111 and Dune Palms Road property.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
BUSINESS PLAN
PAGE 22
• Purchase additional property for future
affordable housing development.
• Complete site planning activities for:
• Washington Street Apartments and
adjoining property.
• Dune Palms Road/Westward Ho properties.
• Conclude mixed use development site
planning activities for City -owned property
located at Avenue 52 between Avenida
Bermudas and Desert Club Drive.
• Identify rehabilitation and/or redevelopment
opportunities involving existing multi -family
residential units.
• Monitor the implementation of the Affordable
Housing Agreement with Coachella Valley
Housing Coalition (CVHC) for the land sale
and development of 218 affordable multi-
family rental dwellings at the Dune Palms
Road/Avenue 48 property.
• Sell additional units in the La Quinta Housing
Program to very low-income households.
Business Development
Activities to Accomplish in • Continue to work with the La Quinta
2008-09: Chamber of Commerce on business
retention efforts and business support
services.
City of La Quinta Marketing Plan
Implement "Business Development' efforts
as part of the City's Marketing Plan to
support La Quinta businesses. Continue
trade show/special event participation,
shop/dine advertising, and local television
advertising; continue efforts to attract
residents and visitors to the Village (via
events, banners, and signage); explore a
shopping map and/or a "Things To Do in La
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
BUSINESS PLAN
PAGE 23
Quinta" master calendar as well as a
business directory on the City's website;
commission "future trends" market study;
and explore cooperative programs with
regional organizations such as CVEP and
Riverside County (trade shows and
advertising opportunities).
. Implement tourism efforts, public relations
activities, and cooperative programs with the
CVA and La Quinta hotels with the goal of
attracting more visitors to stay, play, shop,
and dine in La Quinta.
. Continue to work with Lowe Enterprises on
cooperative marketing efforts, a main portal
(website) for SilverRock resort, and site
signage.
. Continue to: promote community events;
promote senior center, library, and museum
special events and programs; produce
quarterly recreation brochures to promote
programs and classes; and design/produce
banners for the Village area.
Arnold Palmer Classic Course Marketing
Design new artwork for billboards; continue
rotator billboard advertising Valley -wide.
Take full advantage of being a home course
of the Bob Hope Chrysler Classic in 2008-
2009 marketing and advertising efforts.
Print advertising — advertise in publications
such as Desert Goff Magazine, Palm
Springs Life, The Desert Sun, and Alaska
Airlines (in-flight magazine).
Continue to research and implement public
relations opportunities with positive
messages, e.g., national recognition by Golf
Magazine, a home course of the Bob Hope
Chrysler Classic.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
BUSINESS PLAN
PAGE 24
Update www.SilverRock.ora website with
new photos and additional information.
Produce new SilverRock television spots to
air primarily in the local market.
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
Exhibit
200849 Economic Delimlopment Plan
Strategies and Tasks to Stimulate Private Investment in La Quinta
CITY OF LA QUINTA
April 15, 2008 ECONOMIC DEVELOPMENT PLAN
2008-2009
Marketing Plan
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City of La Quinta Marketing Plan
Fiscal Year 2008-2009
Every year, the City of La Quinta implements a comprehensive marketing plan with the goal of promoting
La Quinta as a great place to:
Stay + Play + Shop + Dine + Live
The City of La Quinta Marketing Plan for Fiscal Year 2008-2009 contains specific objectives and iden-
tifies the numerous marketing efforts the City plans to undertake during the fiscal year. The Plan sets
out to accomplish the following: Increase awareness of La Quinta as a tourism destination; promote
business development and support La Quinta businesses; build brand recognition for SilverRock
Resort, the City's resort destination, as well as promote golf play and dining at the Arnold Palmer
Classic Course at SilverRock; communicate with residents and keep them informed of important City
news and programs; and promote community services activities and special events, which enhance the
quality of life in La Quinta.
TOURISM/HOSPITALITY
OBJECTIVES: Attract more visitors to stay in La Quinta hotels as well as shop and dine in La Quinta.
Increase tenant occupancy tax and sales tax revenue for the General Fund and, ultimately, for enhanced
municipal services.
✓ Local & Regional Television — A local broadcast schedule is proposed for 2008-2009 in order to
capture visitors already in the Coachella Valley. The television spots will air during high "tourist"
periods via local commercials on national networks like the Golf Channel, A&E and CNN. A local
channel schedule will also be considered (e.g., KMIR, KESQ, CBS2). The City will consider running
the City's Journey TV 30-second spot which is "tagged" and refers viewers to Journey TV for more
information on La Quinta. In addition, La Quinta's 30-second spots will air in Southern California's
drive in markets (e.g., Los Angeles, Orange County, San Diego). A Canadian market such as
Vancouver or Calgary will be explored.
✓ Cooperative Program with La Quinta Hotels —Participate in Journey TV (Time Warner Cable's
travel on demand channel) with La Quinta hotels. Look into expanding the cooperative program
to include print advertising. Explore publications such as LA Confidential and regional distribution
of national publications such as Business Week, Fortune, Forbes, Travel + Leisure, and Food & Wine.
✓ Bob Hope Chrysler Classic Advertising — Explore an ad in the "Pairings Sheet" in 2008-2009
rather than the souvenir program guide.
✓ TravelProurism Website — Create a "P1ayLaQuinta.com" website geared toward tourists and visitors.
Television and print advertising will have a better "call to action" given visitors will know where to
stay, where to dine, where to shop, and all there is to do in La Quinta. The City shall explore purchasing
targeted lists and send e-blasts to drive traffic to the website. The City shall also explore increasing
the pay -per -click advertising budget to drive visitor traffic to the site.
✓ Community CalendarP'Things To Do in La Quinta" Brochure — Working with the La Quinta
Marketing Committee, produce a fun and creative brochure that lists key La Quinta community
events and amenities offered throughout the year. Make the brochure available at La Quinta hotels,
the Visitor's Center, and SilverRock Resort in an effort to keep visitors in La Quinta by informing
them of all the exciting events and recreational opportunities La Quinta has to offer.
✓ Airport Baggage Claim Ad — This will be an over -sized, back lit display ad located on a wall near
the baggage claim area at the Palm Springs International Airport. When people arrive at the airport,
signage and ads located throughout the airport provide them with information on what there is to
do in the Coachella Valley. The airport will be a good place to showcase La Quinta — invite visitors
to nearby La Quinta — via beautiful photography and promoting shopping, dining, and a variety of
things to do.
✓ Bus Wrap Ad — Explore a SunLine Transit Agency bus wrap advertisement. It would be powerful
to wrap a bus on a route in another part of the Valley with a beautiful, dramatic SilverRock shot on
one side, Village shopping on the other, and a message such as: "Follow me to La Quinta — the
Gem of the Desert." A route can be selected, and the Highway I II route that runs throughout the
Valley is the route that is recommended.
✓ CVA Cooperative Advertising — Continue to leverage marketing dollars via cooperative marketing
opportunities the Palm Springs Desert Resort Communities Convention and Visitors Authority
extends to member cities in the Valley (i.e., State Visitors Guide; special destination features in
National Geographic Traveler, Travel + Leisure, and Food & Wine; and the airline service campaign).
PUBLIC COMMUNICATIONS
OBJECTIVES: Communicate with residents and inform them of important City news and events. Reach
out to local and regional media and secure positive coverage for La Quinta.
.f La Quinta City Report — Issue quarterly newsletters to La Quinta residents with information on
City projects, programs, and events.
✓ City Calendar — Produce 2009 City Calendar which serves as a gift for residents, a communications
instrument, and a marketing collateral piece.
✓ Palm Springs Life Advertorial — Participate in the annual "Coachella Valley Cities" progress issue
(October 2008), which highlights La Quinta projects, programs, and demographics via editorial
content and photography
✓ Public Relations — Issue press releases on new projects/programs, special events, and important
news; and work with the media on positive coverage for La Quinta. Promote the City's commitment
to "going green." Inform residents of energy and water conservation programs offered by the City's
green partners such as the Coachella Valley Water District, Imperial Irrigation District, and Burrtec
and encourage their participation.
✓ City of La Quinta Website — Promote news, events, and programs via the City of La Quinta website
(www.la-quinta.org). Post information and material produced via the City of La Quints Marketing
Plan on the City's website for maximum exposure (e.g., City Calendar, City Report newsletter,
press releases).
BUSINESS DEVELOPMENT
OBJECTIVES: Support existing La Quinta businesses through a variety of economic development and
marketing efforts and attract more Valley residents to shop, dine, and play in La Quinta.
✓ Chamber of Commerce — Continue to work with the La Quinta Chamber of Commerce on business
retention efforts and business support services. Continue to produce the City Scene pages of The
Gem, which is the Chamber's monthly news publication that is mailed to La Quinta residents and
Chamber members.
✓ Trade Conferences — Maintain a presence at the International Council of Shopping Centers (ICSC)
Western Division Conference ba Deal Making (in San Diego) with a booth to communicate business
opportunities in La Quinta. Continue participation in BizNet, which is a trade show and symposium
hosted locally by the La Quinta, Indio, and Coachella Chambers of Commerce.
✓ Shop/Dine tir "Come to La Quinta" Spring Advertising Campaign — Produce ads for The Desert
Sun, La Quinta Sun, and Desert Entertainer promoting spring events in La Quinta — using an over-
all shopping and dining theme.
✓ Cooperative Advertising with Village Businesses — Develop a cooperative advertising campaign
centered on major events in the Valley, i.e., Pacific Life Open, the Skins Game, and the HITS event
series at the Empire Polo Grounds. These major events occur near La Quinta and attract visitors
who may not be familiar with the desert and are not likely to find the La Quinta Village — which is
just minutes away! Reach out to Village shops and restaurants on a cooperative advertising campaign
to reach these visitors at strategic times of the year. The City shall develop a program whereby
Village businesses pay to participate— not with their own ad, but their logo and a sentence about
what makes them unique, along with their phone number and website. Advertising efforts will
include event program guides, on -site signage/advertising, and print ads in event supplements
produced by The Desert Sun and Desert Entertainer.
✓ Shopping Map & Business Directory — Create a shopping map to distribute at key locations such
as La Quinta hotels, the Visitor's Center, and SilverRock Resort as well as explore an electronic version
for the City's website. Create a customer -friendly business directory for the Ctty's website that will
provide users a quick and easy way to learn about where they can shop and dine in La Quinta.
✓ Market Study — Commission a market study with a focus on "future trends" in order to gain insight
on the next generation of consumers and attract suitable businesses to La Quinta.
✓ Cooperative Marketing Programs — Explore cooperative programs with regional organizations
such as the Coachella Valley Economic Partnership and Riverside County (trade shows and
advertising opportunities).
✓ Village Area Promotion — Continue efforts to attract residents and visitors to the La Quinta Village
area via events, banners, and signage.
SILVERROCK RESORT
OBJECTIVES: Increase golf play at the Arnold Palmer Classic Course. Promote it as a premier golf
course in the Coachella Valley and increase golf and golf -related revenues. Promote SilverRock Resort as a
high -end resort destination and initiate efforts to create a master brand for all SilverRock components.
Golf Operations
✓ Advertising & Promotions — Advertising and promotions are targeted to La Quinta residents and
tourist/resort golfers through advertising and media coverage in local, regional and Southern
California golf and travel publications.
Newspaper — Ads shall be placed in The Desert Sun with primary emphasis on the sports
enthusiasts with weekly "ear ads" appearing on the front page of the Sports Section; ear ads are
visible to all readers of the paper. Special promotions are designed, as needed by season, and
placed in the various print advertisements.
Magazlnes and Directories — Consists of local and regional magazines, yellow pages and golf -related
directories. These ads vary from full page to quarter page ads and are full color.
• Television & Radio — SilverRock's 30-second golf commercial will be updated and will air on
all three local network affiliates (CBS2, KESQ3-ABC, KMIR6-NBC) and Time Warner Cable
stations. Local radio will involve 30-second spots for specific promotions.
Billboard Advertising — Reinforces other ad programs and catches the attention of those who
may not see other types of ads. The program involves a rotating billboard; every two months
the location changes within the Valley. The billboard ad is 10.6 feet tall and 36 feet wide. The
billboard graphic design will be updated so that the SilverRock information (tee times, website,
phone number, etc.) is easier to read.
✓ Collateral Material — Rack cards, scorecards, and information packets on SilverRock Resort are
used as marketing tools. An emphasis will be placed on SilverRock's participation in the Bob Hope
Chrysler Classic. Printed material will be produced, as needed, to promote SilverRock Resort as a
"Home Course of the Bob Hope Chrysler Classic."
✓ Civic/Community Networking & Tradeshows — SilverRock Resort is positioned as a community -
friendly golf facility and is committed to developing strong relationships with community organizations
such as the La Quinta Chamber of Commerce and various local service organizations. At various
venues locally and around Southern California, trade shows and expos are held that provide an
opportunity to promote SilverRock Resort. These trade shows and expos are focused on tourism,
golf and golf equipment/apparel, recreation, weddings and other related businesses.
✓ Internet Websites & E-mail Marketing — A benefit of memberships in selected local chambers of
commerce and the Convention and Visitors Authority provides access to cross -marketing opportunities
through website links to SilverRock Resort. E-mail database marketing is targeted to consumer e-mail
addresses collected daily through comment cards, tee -time bookings, selected websites and the La
Quinta Resident Card renewal process. This e-mail database is used to send e-mail blasts promoting
SilverRock Resort and/or to offer specials during slower days of the seasons in an effort to maximize
tee sheet utilization.
✓ Junior Golf — SilverRock will continue to support local Junior Golf by offering various Summer
Junior Camps, Junior Rates and being a host course for the La Quinta High School Boys Golf Team.
✓ Tournaments & Group Outings — A continued concentrated effort to attract corporate and group
outings will be positioned through various networking opportunities. Tournament business represents
a large amount of outside play and is vital to SilverRock's success.
Resort Master Brand
✓ Main Website — Currently, two SilverRock websites exist:
www.SilverRock.org (golf) and www.mySilverRock.com (Lowe; La Solana). A common, effective
approach employed by multi -faceted resorts like SilverRock Resort is the development of a single
website or "portal" that provides easy access to information about the resort and each component.
Thus, www.mySilverRock.com is proposed to serve as the web portal for SilverRock Resort. The
existing golf website will be a prominent component (link) during the first year, and will undergo
rebuilding and full integration in Fiscal Year 2009-2010.
✓ Perimeter Site Signage — The new SilverRock signs and new La Solana signs on the perimeter of
the site are consistent in look and feel. The SilverRock signs will be updated to display the
www.mySilverRock.com website.
✓ Interior Site Signage — The existing locator signs that identify the future resort components will be
replaced with new signs that display the www.mySitverRock.com website. These signs will convey
new information about the coming resort components (e.g., Jacobsen/Hardy golf course, clubhouse
rendering).
✓ Ranch House Displays — With 40,000+ rounds per year, the Ranch House provides an ideal venue
for promoting the resort. Lowe Destination Development is creating an entry display/information
board between the golf shop and restaurant. Other opportunities include restaurant and pro shop
displays.
✓ Promotional Materials 8r Ads — Ads and collateral material will be updated to reflect the main
website address (www.mySilverRock.com). Landmark and Lowe will begin this transition in Fiscal
Year 2008-2009.
✓ Public Relations — An updated brand identity campaign creates excellent public relations (PR)
opportunities. A PR campaign will be executed via existing resources.
COMMUNITY SERVICES
Special Events/Recreation Programming/Senior Center
OBJECTIVE. Increase public awareness and participation in City -sponsored special events and recreation programs.
✓ Special Events — Continue to organize special acknowledgement events such as Pillars of the
Community, Distinguished Artists of La Quinta, and ceremonies honoring La Quinta veterans and
sports figures. Continue to organize events for residents to enjoy and events that draw people to
the La Quinta Village such as the City Picnic and Open Air Cinema (movies in the park). Develop
youth events in the north section of La Quinta and continue events such as the Easter Egg Hunt,
National Night Out, and the La Quinta Youth Festival.
✓ Activities Brochure — A complete listing of all recreation programs, facilities and special events are
listed in the activities brochure mailed to all households in La Quinta three times annually.
✓ City Website & Monthly E-mail Blasts — Place all City special events and recreation programs on
the website and create opportunities for participants to register for these activities on-line. Provide
monthly updates to the households that register for programs and activities on the website.
✓ Cooperative Promotion with La Quinta Arts Foundation & Other Local Non -profits — Work
closely with the La Quinta Arts Foundation on promoting the City of La Quinta; coordinate La
Quinta's exposure via the City's financial commitment to the Arts Foundation and its activities.
Work with groups including the Friends of the Senior Center, Friends of the Library, La Quinta
Historical Society, Friends of the Desert Mountains, Boys & Girls Club, and other non -profits to promote
programs and events through the distribution of information.
✓ Postcards — Postcards are developed and distributed to La Quinta households three times annually
promoting special events and excursions.
✓ Cove Website & Daily E-mail Messages — Information is provided to the Cove website on City
events and programs. The Cove website also provides a daily e-mail that has timely promotion
of events and web -casts of the happenings or items of interest to Cove residents.
✓ Gem & City Report— Submit information that highlights special events, excursions and new
programs for inclusion in the Gem (City pages) and the City Report (quarterly newsletter) to
promote to all households in the City.
✓ Flyers — Flyers are distributed at City facilities including Library, Senior Center and Museum as
well as the Boys & Girls Club, La Quinta Community Center, YMCA and local businesses.
✓ Press Releases to Local Newspapers & Event Calendars — Promote special events and
programs to daily newspapers and place them in the event calendars.
FACILITY RENTALS
OBJECTIVE: Promote awareness of the City facilities available for rent and increase community use for
meetings and events.
✓ Facility Rental Software — This software has been installed so that potential facility renters can
view availability of La Quints facilities and available amenities. This information, in addition to the
information available on the website, provides facility renters an opportunity to learn more about
the rentals prior to their visit to City Hall.
✓ Activities Guide — Information is placed in the activities guide indicating available rental locations.
✓ Facility Brochure — Create and distribute a facility rental brochure that advertises City parks and
facilities available for rent.
LIBRARY SERVICES
OBJECTIVE: Provide information to residents about the La Quinta Public Library as well as its expanded
new services and facilities.
✓ City Website & Riverside County Library Services Website — Information regarding the Library
including hours of operation and programs are located on the City website. In addition, the City is
linked to the Riverside County Library System so that residents can request books and educational
materials that may not be available at the La Quinta Library.
✓ Design New Bookmarks — New books marks with hours of operations and pertinent information
will be distributed to the community.
✓ Promote Book Sales — Friends of the Library provide an annual book sale and manage the book
purchase program in the Library.
✓ Day of the Child/Dia de los Ninos — This special event focuses on the importance of family
reading and its long term benefits.
✓ Class Visits from Schools — Encourage teachers to schedule a class visit for their students at the
La Quinta Library.
✓ Use of the Library Data Bases — Provide instruction to teachers on the uses of the Library databases
for the use of reference materials and other research uses.
LA QUINTA MUSEUM
OBJECTIVE: Provide information and promotional materials to residents regarding the operating hours,
exhibits, and programs offered at the La Quinta Museum.
✓ Feature Articles about the La Quinta Museum — Articles about the new facility and its programs
will be featured in To Quinta Sun, The Desert Sun, and L2 Magazine.
✓ Program Cards — Develop and distribute program cards identifying programs for next season.
✓ Cooperative Programming with La Quinta Historical Society & La Quinta Arts Foundation —
Programs and events will be co -sponsored with these non -profits to provide education on
history and culture.
✓ Feature Articles & Web Casts on the Historic Mural — The local artist, Andre Blanchet, is working
on the installation of the historical mural that is in the La Quinta Museum. This mural is a focal
point of the history of the City.