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FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY. DECEMBER 16, 2008 — 4:00 P.M.
Beginning Resolution No. FA 2008-003
CALL TO ORDER
Roll Call:
Board Members: Franklin, Henderson, Kirk, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF NOVEMBER 18, 2008.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. RECEIVE AND FILE TREASURER'S REPORT DATED OCTOBER 31, 2008.
Financing Authority Agenda 1 December 16, 2008
2. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED OCTOBER
31, 2008.
3. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA
FINANCING AUTHORITY 1996 LEASE REVENUE REFUNDING BONDS AND
2004 LOCAL AGENCY REVENUE BONDS FOR FISCAL YEAR ENDING JUNE
30, 2008.
BUSINESS SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
The next regular meeting of the Financing Authority will be held on January 20,
2009, at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico,
La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Financing Authority meeting of December
16, 2008, was posted on the outside entry to the Council Chamber at 78-495
Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on December 12, 2008.
DATED: December 12 2008
VERONICA J. TECINO, City Clerk
City of La Quinta, California
Public Notice
Any writings or documents provided to a majority of the Financing Authority regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
Financing Authority Agenda 2 December 16, 2008
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AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 16, 2008
BUSINESS SESSION: _
ITEM TITLE: Receive and File Treasurer's Report
dated October 31, 2008 CONSENT CALENDAR: _
Mrig 1WI Mxy 1110
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the La Quinta Financing Authority:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
04 �OZce �-dl 4 XP Q9!Arcv
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COUNCIL/RDA MEETING DATE: December 16, 2008
ITEM TITLE: Receive and File Revenue and
Expenditure Report dated October 31, 2008
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION: _hh
CONSENT CALENDAR: d+
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the October 31, 2008 Statement of Revenue and Expenditures for
the La Quinta Financing Authority.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures, October 31, 2008
LA OUINTA FINANCING AUTHORITY
REVENUE DETAIL
ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
DEST SERVICE REVENUE:
Contractual Services Fees
Non Allocated Interest
Rental Income
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT REVENUE:
Pooled Cash Allocated Interest
Non Allocated Interest
TOTAL CIP REVENUE
TOTAL FINANCING AUTHORITY
15,000 00
coo
15,01)0.00
0 000%
0.00
0.00
0.00
0,000%
675,880.00
533,260 00
142,620.00
78 900%
5,919,994.00
3,781,62813
2,138,36587
63880%
6,610,87400
4,314,88813
2,295,98587
65270%
000 0 00 000 0 000%
000 0 00 000 0.000%
000 Dab 000 0000%
6,610,874.00 4,314,88813 2,295,98587 65.270%
2
LA QUINTA FINANCING AUTHORITY
EXPENDITURE SUMMARY
07/01/2008 - 10/31/2008
ADJUSTED REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
DEBT SERVICE EXPENDITURES
SERVICES
BOND PRINCIPAL - 1990
BOND PRINCIPAL - 2004
BOND INTEREST- 1996
BOND INTEREST - 2004
TRANSFER OUT
CAPITAL IMPROVEMENT EXPENDITURES
BOND ISSUANCE COSTS
TRANSFER OUT
15,800 00
6.20242
0.00
9,597.58
380,000.00
380,000 OD
0.00
0.00
1,615,000.00
1,615,000.D0
0.00
000
296,45000
153,260.00
0.00
143,190.0W
4,304,99400
2,166,628.13
000
2,138,365.87
0.00
000
000
0.00
TOTAL DEBT SERVICE
000 0.00 0.00 000
000 0.00 0.00 0.00
TOTAL CAPITAL IMPROVEMENT u.uu 000 0.00 0.00
TOTAL FINANCING AUTHORITY
3
`r';ty of 1wQuiAr�,
COUNCIL/RDA MEETING DATE: December 16, 2008
ITEM TITLE: Approval of Annual Continuing
Disclosure for the La Quinta Financing Authority
1996 Lease Revenue Refunding Bonds and 2004
Local Agency Revenue Bonds for Fiscal Year End
June 30, 2008
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local Agency
Revenue Bonds for Fiscal Year End June 30, 2008.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 10, 1994, the Securities and Exchange Commission adopted
amendments to existing federal regulations (Rule 15c2-12) for bonds issued after
July 3, 1995, requiring issuers of municipal securities (bond issues) to do the
following annually for each bond issue:
1. Prepare official statements meeting the content requirement of
Rule 15c2-12.
2. File certain financial information and operating data with national and state
repositories each year.
3. Prepare announcements of the significant events including payment
defaults, defeasances and draws on a reserve fund as the events occur.
Attachment 1 is the 2007/2008 Annual Continuing Disclosure Statement for the La
Quinta Financing Authority 1996 Lease Revenue Refunding Bonds prepared in
accordance with the three aforementioned requirements. Additionally, no
announcement of significant events was necessary for Fiscal Year 2007/2008,
however, after June 30, 2008, the ratings of bond insurer MBIA and AMBAC have
been downgraded twice. Material event notices (Attachment 2) has been filed with
the appropriate repositories on July 23, 2008 and December 1, 2008 reporting
these downgrades.
It is important to note that the Agency has continued to pay debt service to the
bondholders who invested in these bonds.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Financing Authority include:
1. Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local
Agency Revenue Bonds for Fiscal Year End June 30, 2008; or
2. Do not approve, receive and file the Annual Continuing Disclosure for the La
Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and 2004
Local Agency Revenue Bonds for Fiscal Year End June 30, 2008; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachments: 1. 2007/2008 Annual Continuing Disclosure Statements for the
La Quinta Financing Authority
2. Material Event Disclosures dated July 23, 2008 and
December 1, 1996 Lease Revenue and 2004 Local Agency
Revenue Bonds
2008 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 16, 2008
Also available at:
WILLDAN
Financial Services
www.willdan.com
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(619) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
Willdan Financial Services*
(formerly Munifinancial)
Temecula, California 92590
(951)587-3500
Report available for viewing @
www.wilidan.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker, LLP
Costa Mesa, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 615-6047
In its role as Disclosure Consultant and Dissemination Agent, Willdan Financial Services has not passed upon the
accuracy, completeness or fairness of the statements contained herein.
1. INTRODUCTION
Pursuant to an Official Statement dated November 15, 1996 the La Quinta Financing
Authority (the "Authority") issued $8,790,000 1996 Lease Revenue Refunding Bonds
(La Quinta City Hall Project) (the "Bonds") to refinance the Authority's previously issued
Local Agency Revenue Bonds, Series 1991 (City Hall Project).
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
The Bonds are payable solely from the lease payments relating to the La Quinta City
Hall Project, and amounts held in certain funds and accounts established under a trust
agreement. The City has covenanted to provide for the lease payments in its annual
budget and to make the necessary appropriation for such payments. However, the
Bonds and the obligation of the City to make lease payments does not constitute an
obligation for which the City is obligated to levy or pledge any form of taxation. Neither
the Bonds nor the obligation of the City to make lease payments constitutes an
indebtedness of the City, the State of California or any political subdivisions thereof
within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to
a covenant made by the City and the Authority for the benefit of the holders of the
Bonds and includes the information specified in a Continuing Disclosure Agreement. For
further information and a more complete description of the City, the Authority and the
Bonds, reference is made to the Official Statement.
The information set forth herein has been furnished by the Authority and the City and by
sources, which are believed to be accurate and reliable but is not guaranteed as to
accuracy or completeness. Statements contained in this Annual Continuing Disclosure
Information Statement which involve estimates, forecasts, or other matters of opinion,
whether or not expressly so described herein, are intended solely as such and are not
to be construed as representations of fact. Further, the information and expressions of
opinion contained herein are subject to change without notice and the delivery of this
Annual Continuing Disclosure Information Statement will not, under any circumstances,
create any implication that there has been no change in the affairs of the Authority and
the City or any other parties described herein.
20007/08— 1996 Lease Rev City of La Quinta 1
It- BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of June 30, 2008
1996 Lease Revenue Bonds $5,540,000
B. FUND BALANCES
Fund
Reserve Fund I'I
$689,350
2008
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the MBIA Insurance Corporation.
Ill. FINANCIAL INFORMATION
The audited financial statements for the City for the Fiscal Year Ended June 30, 2008
and the Adopted Budget for fiscal year 2008/09 will be separately filed with the
Nationally Recognized Municipal Securities Information Repositories and are hereby
incorporated by reference into this Annual Continuing Disclosure Information Statement.
IV. OPERATING INFORMATION
A.
GENERAL FUND EXPENDITURES BY FUNCTION
Fiscal
Year
Ending
General
Public
Public
Community
Planning &
Capital
June 30
Government
Safety
Works
Service
Development
Projects
Total
1999
$2,473,241
$4,468,294
$1,546,650
$732,741
$626,074
$0
$9,847.000
2000
2,814,604
4,992,811
1,704,996
768,528
748,949
0
11,029,888
2001
3,063,641
5,636,154
1,417,528
817,460
733,579
0
11,668,362
2002
2,954,060
7,609,121
1,536,033
1,014,474
726,589
0
13,840,277
2003
3,140,576
8,202,407
2,311,436
991,558
674,450
0
15,320,427
2004
3,892,220
9,672,180
3,130,794
1,025,397
750,444
0
18,444,035
2005
3,765,511
12,364,583
4,794,685
1,104,509
862,890
0
22,892,178
2006
4,426,484
13,029,187
5,044,896
1,248,308
955,569
0
24,704,444
2007
5,246,378
15,634,761
5,019,859
2,994,586
1,384,466
0
30,280,050
2008
6,566,585
17,142,443
5,075,195
2,914,422
1,209,935
0
32,908,580
20007/08— 1996 Lease Rev City of La Quints
B. GENERAL FUND REVENUE BY SOURCE
Fiscal Year Licenses Charges
Ending and Inter- for Rental
June 30 Taxes Permits Governmental Services Interest Income Miscellaneous Total
2001
$10,331,970
$2,057.423
$2,164,891
$1,998,589
$2,513,789
$0
$43,545
$19,110,207
2002
10,443,436
1,857,691
3,683,490
1,757,744
2,030,346
0
529,190
20,301,897
2003
11,572.985
1,982,127
4,394,045
2,302,759
1,894,03
0
87,240
22,233,459
2004
13,184,050
3,096,145
4,895,986
2,619,578
2,335,154
0
109,338
26,240,301
2005
16,762,028
3,226,167
7,552,035
3,402,602
3,238,808
0
513,030
34,694,670
2006
19,259,829
5,145,430
6,530,777
2,180,058
4,115,872
123,500
315,812
37,671,278
2007
21,594,996
2,788.882
7,400,101
1,544,190
5,188,103
0
504,144
39,020,416
2008
22,665,855
2,107,035
9,142,554
1,213,519
5,239,652
0
668,4710)
41,036,986
ftl Includes Contribution
from property owners of $154,417 and
Fines and forfeitures
of $359,114
C. PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year Total Current Percent Collections in Total
Ending Tax Tax of Levy Subsequent Collections
June 30 Levy Collection Collected Years to Tax Levy
2006 $60,716,047 $73,097,360 120.39% $2,092,065 123.84%
2007 79,252,191 74,533,984 93.46% 1,802,076 95.72%
2008 84,100,395 87,804,912 10440% 3,216,547 108.23%
Note: The amounts presented include City property taxes and Redevelopment Agency lax 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
D.
SCHEDULE OF NET TAXABLE VALUE
Fiscal
Year
Assessed
Net
Ending
Secured
Unsecured
Property
Less
Taxable
June 30
Property
Property
Value
Exemptions
Value
2001
$3,162,945,116
$30,599,753
$3.193,544,869
($50,149,068)
$3,143,395,801
2002
3,789,678,041
32,607,713
3,822,285,754
(54,726,303)
3,767,559,451
2003
5,412,382,710
40,940,877
5,453,323,587
(95,420,075)
5,357,903,512
2004
6,289,493,552
44,014,548
6,333,508,100
(113,037,003)
6,220,471,097
2005
7,856,383,375
72,554,357
7,928,937,732
(115,071,146)
7,813,866,586
2006
9,986,151,525
88,740,840
10,074,892,365
(99,245,721)
9,975,646,644
2007
11,854,669,637
101,433,002
11,956,102,639
(89,688,505)
11,866,414,134
2008
12,410,626,893
113,185,065
12,523,811,958
(107,777,195)
12,416,034,763
Source:
County of Riverside Auditor -Controller
20007/08-1996 Lease Rev City of La Quinta
E. SCHEDULE OF DIRECT AND OVERLAPPING DEBT
City Assessed Valuation $ 4,607,425.776
Redevelopment Agency Incremental Valuation 7,808,608,987
Total Assessed Valuation $ 12,416,034,763
Source: Riverside Comity Auditor Controller
Estimated
Share of
Percentage
Outstanding
Overlapping
Applicable'
Debt 6130108
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)
7.8366A
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 J.D. No. 58
6.80996
2,160,000
147,074
DSUSD Community Facilities District No.1
100.000%
1,945,000
1,945,000
City of La Quints 1915 Act Bonds
100.0000%
1,705,000
1,705,000
Coachella Valley Water District Assessment District No. 68
86.247%
2,255.000
1,944,870
Total overlapping debt repaid with property taxes
672,936,832
$0,315,171
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
1.516%
Riverside County Pension Obligations
1.516%
Riverside County Board of Education COP
1.516%
Coachella Valley Unified School District COP
29.508%
DSUSD COP
7.836%
Coachella Valley County Water District I.D. No. 71 COP
10.850%
Coachella Valley Recreation and Park District COP
12.5I 1%
Total overlapping otter 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
53,930,000
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
S 355,502.478
Notes:
t 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 Units
taxable assessed value that is within dte city's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in pan, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is bome 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 Quints . City Direct debt
20007/08-1996 Lease Rev City of La Quinta
F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2008)
Net Assessed Valuation $12,416,034,763
Debt Limit -15 % of Assessed Valuation 1,862,405,214
Amount of Debt Applicable to Debt Limit 0
Legal Debt Margin $1,862,405,412
Note: Section 43605 of the Government Code of the State of California limits the amount of
indebtedness for public improvements to 15% of the assessed valuation of all real and personal
property of the City. The City of La Quinta has no general bonded indebtedness.
G. REVENUE BOND COVERAGE
H
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Debt Service Requirements
Ending
Revenue Available
June 30
for Debt Service
Principal
Interest
Total
Coverage
2001
$678,955
$260,000
$418,955
$678,955
1.00
2002
682,178
275,000
407,178
682,178
1.00
2003
679,435
285,000
394,435
679,435
1.00
2004
680,830
300,000
380,830
680,830
1.00
2005
681,220
315,000
366,220
681,220
1.00
2006
680,575
330,000
350,575
680,575
1.00
2007
678,865
345,000
333,865
678,865
100
2008
675,880
360,000
315,880
675,880
1.00
Note: Revenue available consists of payments from the City General Fund, Civic Center
Development Impact Fee Fund and the Redevelopment Agency Capital Project Fund.
DEMOGRAPHIC STATISTICS Calendar Year 2008
City Land (Sq. Miles)
(3)
35.31
Population
(1)
42,958
Median Household Income (in dollars)
(4)
$74,683
Number of Dwelling Units
(3)
21,058
Persons per Household
(3)
2.851
Average Income per person per household
$26,195
Labor Force
(2)
15,200
Employment
(2)
14,600
Unemployment Rate
(2)
3.95%
Median Age
(4)
36.4
(1) Slate of California Department of Finance - January 1 of each year
(2) State of California Economic Development Department websile
(3) City of La Quints Building & Safety and Community Development Departments
(4) Desert Wheeler's Newsletter City Overview
20007/08- 1996 Lease Rev City of La Quinta 5
J.
PRINCIPAL TAXPAYERS (JUNE 30, 2008)
Percent of Total
Taxable
City Taxable
Taxpayer
Assessed Value
Assessed Value
KSL Desert Resort, Inc.
$381,086,929
3.07%
TO Desert Development
47,028,524
0.38%
Sams Real Estate Trust / Wal Mart
36,819,850
0.30%
Village Resort
33,146,143
0.27%
Quarry at La Quints, Inc.
31,377,029
0.25%
CNL Desert Resort
26,665,873
0.21%
Fourth Quarter Properties XLIII
26,491,514
0.21%
WKL Canyon Ridge Associates
24,531,000
0 20%
Aventine Development
22,350,100
0.18%
Apartment at La Quints Village II
20,194,087
0 16%
One Eleven La Quints
15,950,227
0.13%
Total
$665,641,276
5.36%
Note. The amounts shown above include assessed value data for both the City and Redevelopment
Agency.
MAJOR EMPLOYERS (JUNE 30, 2008)
Employer
Employees
Activity
Desert Sands Unified School District
2,398
Government
La Quints Resort & Club
1,550
Hotel & Golf Resort
Wal-Mart Super Center
400
Retailer
Costco
207
Retailer
Rancho La Quints
200
Golf Resort
Imperial Irrigation District
200
Public Utility
Target
185
Retailer
Lowe's Home Improvement
150
Retailer
Stater Brother's
150
Grocery Store
Home Depot
147
Retailer
Total Employment Listed
5,587
Total City Employment —July 1 14,600
20007/08— 1996 Lease Rev City of La Quetta 6
K. SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2008)
Company
Name Policy Number Coverage Limits Term Premium
Hartford 72BPEEW0254 Employee Dishonesty, $1,000,000 12/03/08 -09 $3,013
Forgery, Computer Fraud
American Wholesale 5467276
Pacific Ins ZG0036449
Endurance Ins 10000326200
California N/A
Joint Powers
Insurance Authority
California N/A
Joint Powers
Insurance Authority
All Risk Property Insurance
40,900,000
07/01/07 - 09
Including Auto Physical Damage
(Excluding Earthquake)
Earthquake & Flood, Real &
7,500,000
02/07/07 -09
Personal Property Including
Contingent Tax Interruption
Comprehensive General Liability
$0 Deductible
07/01/07-09
Retention
$50 Million
Worker's Compensation
5,000,000
07/01/07 - 09
L. CASH AND INVESTMENTS (JUNE 30, 2008)
Cash and Investments
59,258
131,630
281,125
175,642
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
$ 165,927,887
40,831,407
609,164
$ 197.368,458
$ 1,250
(1,533,145)
198,900,353
$ 197,368,458
20007108- 1996 Lease Rev City of La Quinta 7
L. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2008.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
V. SUBSEQUENT EVENTS
The rating of MBIA, Bond Insurer for the 1996 Bonds, has changed. A Material
Event Notice has been disseminated regarding this matter.
20007/08— 1996 Lease Rev City of La Quinta
LA QUINTA FINANCING AUTHORITY
$90,000,000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
CUSIP: 50420A
2008 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 16, 2008
Also available at:
WILLDAN
AN
(_...j Financial S0
www.willdanxom
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.ia-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
Willdan Financial Services`
(formerly Munifinancial)
Temecula, CA 92590
(951) 587-3500
Report available for viewing (&
www.wilidan.com
UNDERWRITER
Stone & Youngberg
BOND COUNSEL
Stradling, Yocca, Carlson & Rauth
Newport Beach, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 615-6047
In its role as Disclosure Consultant and Dissemination Agent, vvniean Financial Services has not passed upon ,,,G
accuracy, completeness or fairness of the statements contained herein.
INTRODUCTION
Pursuant to an Official Statement dated June 21, 2004, the La Quinta Financing Authority (the
"Authority") issued $90,000,000 Local Agency Revenue Bonds, 2004 Series A (the "Bonds") to
provide a loan to the La Quinta Redevelopment Agency (the "Agency") to finance affordable low
and moderate housing in or of benefit to the Community Redevelopment Project Areas No. 1
and 2 (collectively the "Redevelopment Projects") and to advance refund the Agency's
Redevelopment Project Areas No. 1 and No. 2, 1995 Housing Tax Allocation Bonds of which
$19,955,000 are currently outstanding (the "1995 Bonds").
The City of La Quinta, (the "City") which comprises approximately 35.1 square miles, is located
in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los Angeles.
Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the City.
Redevelopment Project Area No. 2 (the "Project Area No. 2") encompasses an area of
approximately 3,116 acres north of Project Area No. 1. The objective of the Agency is to
eliminate or reduce the many instances of economic, physical or social blight presently existing
within the boundaries of the Redevelopment Projects. The Bonds were sold by the Agency for
the purpose of increasing, improving and/or preserving the supply of low and moderate income
housing within the Redevelopment Projects.
The Bonds are special obligations of the Agency and are secured by a pledge of Housing Set -
Aside Tax Revenues, as defined in the Official Statement. The Agency also has outstanding
Tax Allocation Refunding Bonds, Series 1994 (the "1994 Bonds'), a portion of the debt service
on which is payable prior to the Bonds from Tax Revenues required to be deposited in the
Project Area No. 1 Low and Moderate Income Housing Fund. The Bonds are not a debt of the
City, the State of California, or any of its political subdivisions and neither the City, the State of
California, nor any of its political subdivisions is liable. The Bonds do not constitute
indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to a
covenant made by the Agency for the benefit of the holders of the Bonds and includes the
information specified in a Continuing Disclosure Certificate. For further information and a more
complete description of the Agency and the Bonds, reference is made to the Official Statement.
The information set forth herein has been furnished by the Agency and by sources, which are
believed to be accurate and reliable but is not guaranteed as to accuracy or completeness.
Statements contained in this Annual Continuing Disclosure Information Statement which involve
estimates, forecasts, or other matters of opinion, whether or not expressly so described herein,
are intended solely as such and are not to be construed as representations of fact. Further, the
information and expressions of opinion contained herein are subject to change without notice
and the delivery of this Annual Continuing Disclosure Information Statement will not, under any
circumstances, create any implication that there has been no change in the affairs of the
Agency or any other parties described herein.
2007108, 2004 Revenue City of La Quinta
11. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 9, 2008
Loral Agency Revenue Bonds, 2004 Series A $84,560,000.00
B. FUND BALANCES
Fund As of October 9, 2008
Reserve Fund $5,950,356.67
/it. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2008
will be separately filed with the Nationally Recognized Municipal Securities Information
Repositories and are hereby incorporated by reference into this Annual Continuing
Disclosure Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Redevelopment Project Areas.
Area No. 1
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base 0)
Increment
1999/00
$1,627,578,717
$8,034,814
$0
$1,635,613,531
$1,436,215,298
$15,659,371
2000/01
1,927,812,440
14,948,366
0
1,942,760,806
1,743,362,573
18,685,564
2001/02
2,287,724,601
14,486,563
0
2,302,211,164
2,102,812,931
20,929,840
2002/03
2,688,732,575
13,980,069
0
2,702,712,644
2,503,314,411
26,357,623
2003/04
3,062,917,787
13,537,804
0
3,076,455,591
2,877,057,358
29,958,693
2004/05
3,411,082,100
13,813,852
0
3,424,895,952
3,225,497,719
33,867,116
2005/06
3,956,642,179
29,248,534
0
3,985,890,713
3,786,492,480
45,632,751
2006/07
4,779,973,573
34,084,343
0
4,814,057,916
4,614,659,683
52,536,879
2007108
5,210,779,209
34,173,241
0
5,244,952,450
5,045,554,217
54,345,390
2008/09
5,246,680,334
31,678,392
0
5,278,358,726
5,078,960,493
N/A
(1) The Base Value for the Project Area No 1 is $199,398,233
Source: Riverside County and Audited Financial Statements of the La Quints Redevelopment Agency.
2007108, 2004 Revenue City of La Quinta
PROJECT AREA NO. 2
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (1)
Increment
1999100
$653,544,147
$5,472,923
$0
$659,017,070
$563,834,315
$6,127,144
2000/01
790,754,123
9,600,421
0
800,354,544
705,171,789
7,587,996
2001/02
1,003,653,582
12,084,137
0
1,015,737,719
920,554,964
9,004,474
2002103
1,260,121,204
14,535,754
0
1,274,656,958
1,179,474,203
12,396,203
2003/04
1,510,073,642
20,167,571
0
1,530,241,213
1,435,058,458
15,158,339
2004/05
1,745,868,028
21,504,380
0
1,767.372,408
1,672,189,653
17,546,203
2005/06
2,080,975,290
32,295,383
0
2,113,270,673
2,018,087,918
24,812,367
2006/07
2,420,689,543
42,208,337
0
2,462,897,880
2,367,715,125
25,971,446
2007/08
2,724,518,603
50,446,080
0
2,774,964,683
2,679,781,928
28,859,688
2008109
2,805,349,012
61,576,037
0
2,866,925,049
2,771,742,294
N/A
(1) The Base Value for the Project Area No. 2 is $95,182,755.
Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency.
B. HOUSING SET -ASIDE REVENUE
The following table sets forth the Housing Set -Aside revenue for the
Redevelopment Project Areas.
PROJECT AREA NO.1
Total Taxable
Gross Tax
Housing
Fiscal Year
Value
Increment
Set Aside
1998/99
$1,445,536,682
$12,877,280
$2,575,456
1999/00
1,635,613,531
15,659,371
3,131,874
2000/01
1,942,760,806
18,685,564
3,737,113
2001/02
2,302,211,164
20,929,840
4,488,487
2002/03
2,702,712,644
26,357,623
5,271,524
2003/04
3,076,455,591
29,958,693
5,991,739
2004/05
3,985,890,713
33,867,116
6,773,423
2005/06
4,814,057,916
45,632,751
9,126,550
2006/07
5,244,952,450
52,536,879
10,507,377
2007/08
5,278,358,726
54,345,390
10,869,078
Source. Audited Financial
Statements of the
La Quinta Redevelopment Agency and the
Statement of Indebtedness
filed Nth the
Riverside County Auditor -Controller's Office.
PROJECT AREA NO.2
Total Taxable Gross Tax Housing
Fiscal Year Value Increment Set Aside
1998199
$563,669,127
$5,085,079
$1,017,016
1999/00
659,017,070
6,127,144
1,225,429
2000101
800,354,544
7,587,996
1,517,600
2001/02
1,015,737,719
9,004,474
2,025,212
2002/03
1,274,656,958
12,396,203
2,479,241
2003104
1,530,241,213
15,158,339
3,031,668
2004/05
2,113,270,673
17,546,203
3,509,241
2005/06
2,462,897,880
24,812,367
4,962,474
2006/07
2,774,964,683
25,971,446
5,194,289
2007/08
2,866,925,049
28,859,688
5,771,938
Source: Audited Financial Statements of the La Quints Redevelopment Agency and the
Statement of Indebtedness filed with the Riverside County Auditor -Controllers
Office
2007/08, 2004 Revenue City of La Quinta
C. LAND USE
PROJECT AREA NO. 1
Land Use
2008109 Total
Secured Value
Percent
of Total
Residential
$4,471,424,726
8382%
Commercial
539,217,129
10.11 %
Timeshare Estates
33,020,330
062%
Vacant
282,051,845
5.29%
Miscellaneous/Unknown
9,011,342
0.17%
Total Project Area No. 1
$5,334,725,372
100.00%
Source: County of Riverside 2008/09 Secured Property Roll, as compiled by Wlldan Financial
Services.
PROJECT AREA NO. 2
2008109 Total Percent
Land Use Secured Value of Total
Residential
$2,122,206,608
75,31%
Commercial
600,010,603
21.29%
Apartments
21,801,189
0.77%
Vacant
49,699,463
1.76%
Miscellaneous/Unknown
24,333,071
0.86%
Total Project Area No. 2 $2 818,050,934 100.00%
Source County of Riverside 2008/09 Secured Property Roll, as compiled by Wlldan Financial
Services.
D. DEBT SERVICE COVERAGE
The following table sets forth the debt service for the Bonds and the portion of
debt service on the 1994 Bonds payable from Housing Set -Aside revenue.
1994 Bonds Total Debt
Debt Service Payable
Fiscal Debt Service Service From Housing Housing Debt Service
Year Payment Payment ('( Set -Aside Set -Aside (') Coverage
2003/04 $1,352,853 $490,521 $1,843,374 $9,023,407 4.89
2004/05 5,183,006 490,771 5,673,777 10,282,664 1.81
2005/06 5,945,956 490,728 6,225,306 14,086,024 2.18
2006/07 5,950,356 491,050 6,441,406 15,701,666 2.44
2007108 5,948,256 490,676 6,438,932 16,641,016 2.58
(1) Represents the 18.5% portion of annual debt service on the 1994 Bonds to which the Agency has allocated Housing
Set -Aside revenue derived from Project Area No. 1.
(2) Housing Set -Aside includes revenue from Project Area No. 1 and Project Area No 2.
2007108, 2004 Revenue City of La Qwnta
E. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the Bonds and the
portion of debt service for 1994 Bonds payable from the Housing Set -Aside
revenue. Information contained in the table below was gathered and verified from
the corresponding Official Statements.
Maturity Date 1994 Bonds Annual Total
September 1 Debt Service I'I Principal Interest Debt Service Combined
2008
$490,676.43
$1,615,000
$2,166,628.13
$5,948,256.25
$6,438,932.68
2009
490,464.60
1,670,000
2,138,365.63
5,946,731.25
6,437,195.85
2010
490,279.60
1,740,000
2,104,965.63
5,949,931.25
6,440,210.85
2011
490,911.38
1,805,000
2,070,165.63
5,945,331.25
6,436,24263
2012
490,307.35
1,890,000
2,029,553.13
5,949,106.25
6,439,413.60
2013
1,975,000
1,987,028.13
5,949,056.25
5,949,056.25
2014
2,075,000
1,937,653.13
5,950,306.25
5,950,306.25
2015
2,175,000
1,885,778.13
5,946,556.25
5,946,556.25
2016
2,290,000
1,828,684 38
5,947,368.75
5,947,368.75
2017
2,410,000
1,768,571.88
5,947,143.75
5,947,143.75
2018
2,535,000
1,705,309.38
5,945,618.75
5,945,618.75
2019
2,670,000
1,638,7155.63
5,947,531.25
5,947,531.25
2020
2,810,000
1,568,678.13
5,947,356.25
5,947,356.25
2021
2,960,000
1,494,915.63
5,949,831.25
5,949,83125
2022
3,115,000
1,417,215.63
5,949,431.25
5,949,431.25
2023
3,275,000
1,335,446.88
5,945,893.75
5,945,893.75
2024
3,450,000
1,249,478A3
5,948,956.25
5,948,956.25
2025
3,630,000
1,158,91563
5,947,831.25
5,947,831.25
2026
3,810,000
1,068,165.63
5,946,331.25
5,946,331.25
2027
4,000,000
972,91563
5,945,831.25
5,945,831.25
2028
4,200,000
872,91563
5,945,831.25
5,945,83125
2029
4,410,000
767,915.63
5,945,83125
5,945,83125
2030
4,635,000
657,665.63
5,950,331 25
5,950,331 25
2031
4,870.000
538,893.75
5,947,787 50
5,947,787 50
2032
5,120,000
414,100.00
5,948,200.00
5,948,200.00
2033
5,380,000
282,900.00
5,945,800.00
5,945,800.00
2034
5,660,000
145,037 50
5,950,075.00
5,950,075.00
(1) Represents the 18.5% of annual debt service on the 1994 Bonds to which the Agency has allocated Housing Set -Aside
revenue derived from Project Area No. 1.
2007108, 2004 Revenue City of La Quinta
F. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2008.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
V. SUBSEQUENT EVENTS
The rating of Ambac, Bond Insurer for the 2004 Bonds, has changed. A Material
Event Notice has been disseminated regarding this matter.
2007108, 2004 Revenue City of La Quinta
141 11WV1111vIC1V I L
LA QUINTA FINANCING AUTHORITY
$8,790,000
1996 LEASE REVENUE REFUNDING BONDS
(LA QUINTA CITY HALL PROJECT)
Riverside County, California
Dated: November 15,1996
CUSIP: 50419R
Material Event Notice
As of July 23, 2008
Also available at:
lWILLDAN
Financial Services Imnm
www.willdanxom
NOTICE OF MATERIAL EVENT
$8,790,000
La Quinta Financing Authority
1996 Lease Revenue Refunding Bonds
(La Quinta City Hall Project)
Ratings Change
On June 5, 2008, Standard and Poor's Rating Service ("S&P") downgraded MBIA
Insurance Corporation ("MBIA") from "AAA" to "AA". On June 19, 2008, Moody's Investors
Service ("Moody's") downgraded MBIA from 'Aaa" to 'A2". MBIA is the Bond Insurer for the
$8,790,000 La Quinta Financing Authority's (the "Authority") 1996 Lease Revenue Refunding
Bonds (the "Bonds"). An explanation of the significance of the rating downgrade may be
obtained from S&P and Moody's. Although the rating downgrade by S&P and Moody's reflects
MBIA's financial ability to comply with the terms of its policy of insurance, such rating
downgrade is not a measure or reflection of the Authority's underlying ability to pay principal
and interest on the Bonds.
This Material Event Notice is dated July 23, 2008.
LA QUINTA FINANCING AUTHORITY
$8,790,000
1996 LEASE REVENUE REFUNDING BONDS
(LA QUINTA CITY HALL PROJECT)
Riverside County, California
Dated: November 15,1996
CUSIP: 50419R
Material Event Notice
As of December 1, 2008
Also available at:
WILLDAN
Financial Sarvion
www.wilidan.com
NOTICE OF MATERIAL EVENT
$8,790,000
La Quinta Financing Authority
1996 Lease Revenue Refunding Bonds
(La Quinta City Hall Project)
Ratings Change
On November 7, 2008, Moody's Investors Service ("Moody's") downgraded MBIA
Insurance Corporation ("MBIA") from 'A2" to "Baal". MBIA is the Bond Insurer for the
$8,790,000 La Quinta Financing Authority's (the "Authority") 1996 Lease Revenue Refunding
Bonds (the "Bonds"). An explanation of the significance of the rating downgrade may be
obtained from Moody's. Although the rating downgrade by Moody's reflects MBIA's financial
ability to comply with the terms of its policy of insurance, such rating downgrade is not a
measure or reflection of the Authority's underlying ability to pay principal and interest on the
Bonds.
This Material Event Notice is dated December 1, 2008.
LA QUINTA FINANCING AUTHORITY
$900000,000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
CUSIP: 50420A
Material Event Notice
As of July 23, 2008
Also available at:
WILLDAN I w °'
Financial Services m
www.willdanxom
NOTICE OF MATERIAL EVENT
$90,000,000
La Quints Financing Authority
Local Agency Revenue Bonds
2004 Series A
Ratings Change
On June 5, 2008, Standard and Poor's Rating Service ("S&P") downgraded Ambac
Financial Group ('Ambac") from 'AAA" to 'AA". On June 19, 2008, Moody's Investors Service
("Moody's") downgraded Ambac from 'Aaa" to 'Aa3". Ambac is the Bond Insurer for the
$90,000,000 La Quinta Financing Authority's (the "Authority") Local Agency Revenue Bonds,
2004 Series A (the "Bonds"). An explanation of the significance of the rating downgrade may be
obtained from S&P and Moody's. Although the rating downgrade by S&P and Moody's reflects
Ambac's financial ability to comply with the terms of its Financial Guaranty Insurance Policy,
such rating downgrade is not a measure or reflection of the Authority's underlying ability to
pay principal and interest on the Bonds.
This Material Event Notice is dated July 23, 2008.
LA QUINTA FINANCING AUTHORITY
$90, 000, 000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
CUSIP: 50420A
Material Event Notice
As of December 1, 2008
AISo available at:
WILLDAN
1. Firauldal Swim
www.willdan.00m
NOTICE OF MATERIAL EVENT
$90,000,000
La Quinta Financing Authority
Local Agency Revenue Bonds
2004 Series A
Ratings Change
On November 5, 2008, Moody's Investors Service ("Moody's") downgraded Ambac
Financial Group ('Ambac") from'Aa3" to "Baal". On November 19, 2008, Standard and Poor's
Rating Service ("S&P") downgraded Ambac from 'AA" to 'A". Ambac is the Bond Insurer for
the $90,000,000 La Quinta Financing Authority's (the "Authority") Local Agency Revenue
Bonds, 2004 Series A (the "Bonds"). An explanation of the significance of the rating downgrade
may be obtained from S&P and Moody's. Although the rating downgrade by S&P and
Moody's reflects Ambac's financial ability to comply with the terms of its Financial Guaranty
Insurance Policy, such rating downgrade is not a measure or reflection of the Authority's
underlying ability to pay principal and interest on the Bonds.
This Material Event Notice is dated December 1 2008.