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2009 12 15 FA� T S OF T'9� FINANCING AUTHORITY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, DECEMBER 15, 2009 — 4:00 P.M. Beginning Resolution No. FA 2009-003 CALL TO ORDER Roll Call: Board Members: Evans, Franklin, Henderson, 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 17, 2009. 001 Financing Authority Agenda 1 December 15, 2009 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, 2009. 2. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED OCTOBER 31, 2009. 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 END JUNE 30, 2009. 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 19, 2010, 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 15, 2009, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on December 11, 2009. DATED: December 11, 2009 VERONICA J. NTECINO, 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 15, 2009 002 ced� 4 4 QuiArzi COUNCIL/RDA MEETING DATE: December 15, 2009 ITEM TITLE: Receive and File Treasurer's Report dated October 31, 2009 RECOMMENDATION: It is recommended the La Quinta Financing Authority: Receive and file. AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: / STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA • 003 tc O Dv H OF'[KF' AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 15, 2009 BUSINESS SESSION: ITEM TITLE: Receive and File Revenue and Expenditure Report dated October 31, 2009 CONSENT CALENDAR: 6 STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File. BACKGROUND AND OVERVIEW: Transmittal of the October 31, 2009 Statement of Revenue and Expenditures for the La Quinta Financing Authority. Respectfully submitted, A4 0-dam �.J John M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. Revenue and Expenditures, October 31, 2009 ». 004 ATTACHMENT 1 LA OUINTA FINANCING AUTHORITY REVENUE DETAIL DEBT SERVICE REVENUE: Contractual Services Fees Non Allocated Interest Rental Income Transferin TOTAL DEBT SERVICE CAPITAL IMPROVEMENT REVENUE: Pooled Cash Allocated Interest Non Allocated Interest TOTAL CIP REVENUE TOTAL FINANCING AUTHORITY 0710112009 - 10131 /2009 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 15,000.00 0.00 15,000.00 0.000% 0.00 0.00 0.00 0.000% 675,280.00 543,190.00 132,090,00 80.440% 5,913,331.00 3,808,365.63 2,104,965.37 64.400% 6,603,611.00 4,351,555.63 2,252,055.37 65.900% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0,000% 6,603,611.00 4,351,555.63 2,252,055.37 65.900% 005 a LA OUINTA FINANCING AUTHORITY ADJUSTED 10131/09 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET DEBT SERVICE EXPENDITURES SERVICES 15,80000 4.967.61 0.00 10,832.39 BOND PRINCIPAL- 1996 400,000.00 400,000.00 0.00 0,00 BOND PRINCIPAL - 2004 1,670,000.00 1,670,000.00 0.00 0.00 BOND INTEREST - 1996 275.28000 143.190.00 0.00 132,090.00 BOND INTEREST -2D04 4,243,331.00 2.138.365.63 0.00 2,104,965.37 TRANSFER OUT 0.00 0.00 0.00 0.00 TOTAL DEBT SERVICE CAPITAL IMPROVEMENT EXPENDITURES BOND ISSUANCE COSTS 000 0.00 0.00 000 TRANSFER OUT 0.00 000 0.00 0,00 TOTAL CAPITAL IMPROVEMENT TOTAL FINANCING AUTHORITY to.• 006 3 'e^'!t ^F laQurrw COUNCIL/RDA MEETING DATE: December 15, 2009 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, 2009 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 13 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, 2009. FISCAL IMPLICATIONS: kirsyn 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. 007 Attachment 1 is the 2008/-2009 Annual Continuing Disclosure Statement for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds prepared in accordance with the three aforementioned requirements. 1996 Lease Revenue Refunding Bonds During Fiscal Year 2008-2009, a significant notice was issued on June 1, 2009 for a rating downgrade for MBIA, now known as the National Public Finance Guarantee Corporation for the 1996 Lease Revenue Refund Bonds. In last year's report, staff previously reported that MBIA had also been downgraded twice: on July 23, 2008 and December 1, 2008. 2004 Local Agency Revenue Bonds During Fiscal Year 2008-2009, AMBAC ratings were downgraded twice: on July 23, 2008 and December 1, 2008, and were previously reported in last year's report. After Fiscal Year 2008-2009, AMBAC rates were downgraded further on July 9, 2009 and August 10, 2009. 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, 2009; 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, 2009; or 3. Provide staff with alternative direction. Respectfully submitted, J�&�- John M. Falconer, Finance Director 11: Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. 2008/-2009 Annual Continuing Disclosure Statements for the La Quinta Financing Authority 2. Material Event Disclosures dated June 17, 2009 for the 1996 Lease Revenue, and July 9, 2009 and August 10, 2009 for the 2004 Local Agency Revenue Bonds »»:' 009 3 ATTACHMENT 1 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 2009 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT As of December 16, 2009 Also available at: W I LLDAN , Financial SeeAc www.wllldanxom 010 21 LIST OF PARTICIPANTS CITY OF LA QUINTA www.la-quintaorg John Falconer Finance Director P.O. Box 1504 78-495 Calle Tampico La Quinta, California 92247 (619) 777-7150 DISCLOSURE CONSULTANT 8t DISSEMINATION AGENT VViilldan Financial Services* 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. Oil 5 L 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. 2008/09- 1996 Lease Rev City of La Quints 1 1. 012 6 ff. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of October 30, 2009 1996 Lease Revenue Bonds $4.760,000 B. FUND BALANCES Fund As of October 30, 2009 Reserve Fund (') $689,350 (1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by National Public Finance Guarantee Corporation. III. FINANCIAL INFORMATION The audited financial statements for the City for the Fiscal Year Ended June 30, 2009 and the Adopted Budget for fiscal year 2008/09 will be separately filed with the Electronic Municipal Market Access 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 June 30 General Government Public Safety Public Works Community Service Planning & Development 2001 $3,063,641 $5,636,154 $1,417,528 $817,460 $733,579 2002 2,954,060 7,609,121 1,536,033 1,014,474 726,589 2003 3,140,576 8,202,407 2,311,436 991,558 674,450 2004 3,892,220 9,672,180 3,130,794 1,025,397 750,444 2005 3,765,511 12,364,583 4,794,685 1,104,509 862,890 2006 4,426,484 13,029,187 5,044,896 1,248,308 955,569 2007 5,246,378 15,634,761 5,019,859 2,994,586 1,384,466 2008 6,566,585 17,142,443 5,075,195 2,914,422 1,209,935 2009 6,266,263 18,905,111 4,667,193 2,989,567 1,367,350 200&09- 1996 Lease Rev City of La Quints 013 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 2601 $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 13,184,060 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 7,652,035 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 22,666,855 2,107,035 9,142,554 1,213,519 5,239,552 0 668,4710) 41,036,986 2009 20,687,205 871,167 8,907,566 663,738 4,196,101 0 556,326(2) 35,882,103 01 Includes Contribution from property owners of $154,417 and Fines and forfeitures of $359,114. (2) Includes Fines and forfeitures of $434,635. 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 $61,420,601 $73,097,362 119.01% $2,092,062 122.42% 2007 74,170,170 83,797,365 112.98% 1,802,076 115.41% 2008 83,018,429 87,804,912 106.77% 3,216,547 109.64% 2009 83,934,188 86,721,572 103.32% 1,471,940 105.07% 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 D. SCHEDULE OF NET TAXABLE VALUE Fiscal Year Ending June 30 Secured Property Unsecured Property Assessed Property Value Less Exemptions Net Taxable Value 2001 $2,665,520,656 $18,712,736 $2,684,233.392 ($39,914,784) $2,644,318,608 2002 3,162,945,116 30,599,753 3,193,544,869 (50,149,068) 3,143,395,801 2003 3,789,678,041 32,607,713 3,822,285,754 (54,726,303) 3,767,559,451 2004 5,412,382,710 40,940,877 5,463,323,587 (95,420,075) 5,357,903,512 2005 6,289,493,652 44,014,548 6,333,508,100 (113,037,003) 6,220,471,097 2006 7,856,383,375 72,554,357 7,928,937,732 (115,071,146) 7,813,866,586 2007 9,986,151,525 88,740,840 10,074,892,365 (99,245,721) 9,975,646,644 2008 11,854,669,637 101,433,002 11,956,102,639 (89,688,505) 11,866,414,134 2009 12,410,626,893 113,185,065 12,523,811,958 (107,777,195) 12,416,034,763 Source: County of Riverside Auditor -Controller 2008109— 1996 Lease Rev City of La Quinta 3 014 8 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 County Auditor Controller Overlapping Debt Repaid with Property Taxes and Assessments Desert Community College District Coachella Valley Unified School District Desert Sands Unified School District (DSUSD) Coachella Valley County Water District I.D. No. 55 Coachella Valley County Water District I.D. No. 58 DSUSD Community Facilities District No. 1 City of La Quinta 1915 Act Bonds Coachella Valley Water District Assessment District No. 68 Total overlapping debt repaid with property taxes Overlapping Other Debt including Certifications of Participation (COP) Riverside County General Fund Obligations Riverside County Pension Obligations Riverside County Board of Education COP 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 Estimated Share of Percentage Outstanding Overlapping Applicable Debt 6/30/09 Debt 7.870% 31.509% 7.801% 84.351% 6.628% 100.000% 100.000% 86.247% 1.680% 1.680% 1.680% 31.464% 7.801% 11.581% 13.222% $ 325,869,507 92,297,458 296,353,845 4,170,000 1,960,000 1,885,000 1,350,000 2,185,000 726,070,810 $ 760,794,659 382,090,000 8,270,000 52,945,000 72,505,000 5,240,000 2,455,000 1,284,299,659 $ 1,284,299,659 $ 25,645,930 29,082,006 23,118,563 3,517,437 129,909 1,885,000 1,350,000 1,884,497 86,613,342 $ 12,781,350 6,419,112 138,936 16,658,615 5,656,115 606,844 324,600 42,585,572 $ 129,198,914 236,563,357 $ 365,762,271 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 units 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 borne 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 2008109— 1996 Lease Rev City of La Quinta r. 015 9 F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2009) 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 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 1.00 2008 675,880 360,000 315,880 675,880 1.00 2009 676,450 380,000 296,450 676,450 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. H. DEMOGRAPHIC STATISTICS Calendar Year 2009 City Land (Sq. Miles) (3) 35.31 Population (1) 43,778 Median Household Income (in dollars) (4) $76,227 Number of Dwelling Units (3) 21,355 Persons per Household (3) 2.851 Average Income per person per household $26,737 Labor Force (2) 14,800 Employment (2) 13,700 Unemployment Rate (2) 7.43% Median Age (4) 36.4 (1) State of California Department of Finance - January 1 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 2008109- 1996 Lease Rev City of La Quinta 5 016 10 J PRINCIPAL TAXPAYERS (JUNE 30, 2009) Taxpayer Taxable Assessed Value Percent of Total City Taxable Assessed Value KSL Desert Resort, Inc. $351,987,688 2.83% TD Desert Development 123,545,144 1.00% East of Madison 63,848,760 0.51 % Sams Real Estate Trust / Wal Mart 50,062,387 0.40% ND La Quinta Partners 42,929,365 0.35% Coral Option I LLC 41,623,109 0.34% Griffin Ranch 40,240,602 0.32% Village Resort 33,809,065 0.27% Inland American LQ Pavillion 32,260,312 0.26% Toll California V 32,130,633 0.26% Total $812,437,065 6.54% Note: The amounts shown above include assessed value data for both the City and Redevelopment Agency. MAJOR EMPLOYERS (JUNE 30, 2009) Employer Employees Activity Desert Sands Unified School District 2,415 Government La Quinta Resort & Club 1,210 Hotel & Golf Resort Wal-Mart Super Center 463 Retailer Rancho La Quinta 200 Golf Resort Home Depot 190 Retailer Imperial Irrigation District 164 Public Utility Costco 157 Retailer Lowe's Home Improvement 140 Retailer Target 125 Retailer Stater Brother's 120 Grocery Store City of La Quinta 107 Government Total Employment Listed 5,291 Total City Employment - July 1 13,700 2008/09- 1996 Lease Rev City of La Quinta 6 017 K. SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2009) Company Policy Name Number Coverage Limits Term Premium Hartford 72BPEEW0254 Employee Dishonesty, $1,000,000 12/03/08 — 09 $3,013 Forgery, Computer Fraw Lexington 5467276 All Risk Property Insurance Including Auto Physical Damage (Excluding Earthquake) Pacific Ins RV0004288 Earthquake & Flood, Nat'l Fire & CV0004288 Real & Personal Marine Lloyds 04-20221100 Property Including Contingent Tax Interruption Travelers Ins 213450M0084 Boiler & Machinery Co California Comprehensive Joint Powers N/A General Liability Insurance Authority California Worker's Joint Powers N/A Compensation Insurance Authority California Environmental & Joint Powers N/A Liability Insurance Authority 2008109— 1996 Lease Rev City of La Quints 63,550,220 07/01/08-09 59,258 20,000,000 02/07/09 —10 160,387 57,728,500 2/7/09-7/1/09 1,579 Earned prem $50 Million 07/01/08-09 281,125 Single Limit per Occurrence 10,000,000 07/01/08-09 172,941 10,000,000 07/01/08-09 19,215 7 018 12 L. CASH AND INVESTMENTS (JUNE 30, 2009) Cash and Investments Cash and investments as of June 30, 2009, are classified in the accompanying financial statements as follows: Statements of Net Assets: Cash and investments Cash with fiscal agent Statements of Fiduciary Net Assets: Cash and investments Total cash and investments Cash and investments as of June 30, 2009, consist of the following: Cash on hand Deposits with financial institutions Investments Total cash and investments 2008109— 1996 Lease Rev City of La Quinta $ 174,402,127 18,728,838 566,970 $ 193,697,935 $ 1,565 986,916 192,709,454 $ 193,697,935 13 M. REPORTING OF SIGNIFICANT EVENTS The Continuing Disclosure Covenants outline the Significant Events that must be reported if they are deemed material. The Agency has no knowledge that any of the events listed below have occurred or have not been previously reported during the fiscal year ended June 30, 2009. 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 National Public Finance Guarantee Corporation, Bond Insurer for the 1996 Bonds, has changed. A Significant Event Notice has been disseminated regarding this matter. 200a/09- 1996 Lease Rev City of La Quinta 9 020 fIM" LA QUINTA FINANCING AUTHORITY $90, 000, 000 LOCAL AGENCY REVENUE BONDS 2004 SERIES A Riverside County, California Dated: June 29, 2004 CUSIP: 50420A 2009 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT As of December 15, 2009 Also available at: WILLDAN 1 FinancW Se,!c www.willdanxom w.. 021 15 LIST OF PARTICIPANTS CITY OF LA QUINTA www.la-quinta.org John Falconer Finance Director P.O. Box 1504 78-495 Calle Tampico La Quinta, California 92247 (760)777-7150 DISCLOSURE CONSULTANT & DISSEMINATION AGENT Willdan Financial Services 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, wwdan Financial services has not passed upon the accuracy, completeness or fairness of the statements contained herein. ... 022 16 L 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 (the "1995 Bonds"). 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 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 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. 2006109, 2004 Revenue City of La Quinta 023 17 H. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of October 30, 2009 Local Agency Revenue Bonds, 2004 Series A $82,890,000.00 B. FUND BALANCES Fund As of October 30, 2009 Reserve Fund "' $5,950,356.67 (1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation. Ill. FINANCIAL INFORMATION The audited financial statements for the Agency for the fiscal year ended June 30, 2009 will be separately filed with the Electronic Municipal Market Access 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. Fiscal Secured Unsecured utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base trl Increment 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 50,649,225 2009/10 4,912.824,357 36,007,022 0 4,948,831,379 4,749,433,146 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 Quinta Redevelopment Agency. 2008109, 2004 Revenue City of La Quinta -a... 024 18 PROJECT Fiscal Secured Unsecured Utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base (1) Increment 2000/01 $790,754,123 $9,600,421 $0 $800,354,544 $705,171,789 $7,587,996 2001/02 1,003,653,582 12,084,137 0 1,015,737,719 920,554,964 9,004,474 2002/03 1,260,121,204 14,535,754 0 1,274,656,958 1,179,474,203 12,396,203 2003/04 1,510,073,642 20,167,571 0 1,530,241,213 1,435,058,458 15,158,339 2004/05 1,745,868,028 21,504,380 0 1,767,372,408 1,672,189,653 17,546,203 2005/06 2,080,975,290 32,295,383 0 2,113,270.673 2,018,087,918 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 2008/09 2,805,349,012 61, 576,037 0 2,866,925,049 2,771,742,294 28,479,642 2009/10 2,599,001,419 65,591,021 0 2,664,592,440 2,569,409,685 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 1999100 $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 2008109 4,948,831,379 50,649,225 10,129,845 Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the Statement of Indebtedness filed with the Riverside County Auditor -Controller's Office. PROJECT AREA NO. 2 Fiscal Year Total Taxable Value Gross Tax Increment Housing Set Aside 1999/00 $659,017,070 $6.127,144 $1,225,429 2000/01 800,354,544 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 2008/09 2,664,592,440 28,479,642 5,695,928 Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the Statement of Indebtedness fled with the Riverside County Auditor -Controller's Office. 2008109, 2004 Revenue City of La Quinta 025 19 C. LAND USE PROJECT AREA NO. 1 Land Use 2009110 Total Secured Value Percent of Total Residential $4,269,757,144 84.22% Commercial 489,223,948 9.65% Timeshare Estates 37,873,351 0.75% Vacant 262,399,904 5.18% Miscellaneous/Unknown 10,451,619 0.21% Total Project Area No. 1 $5,069,706,966 100.00% Source: County of Riverside 2009110 Secured Property Roll, as compiled by Willdan Financial Services. PROJECT AREA NO. 2 Land Use 2009110 Total Secured Value Percent of Total Residential $1,932,406,905 70.61% Commercial 637,232,194 23.29% Apartments 80,088,512 2.93% Vacant 57,106,205 2.09% Miscellaneous/Unknown 29,719,137 1.09% Total Project Area No.2 $2,736 552,953 100.00% Source: County of Riverside 2009/10 Secured Property Roll, as compiled by Willdan 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 I') Set -Aside Set -Aside (2) Coverage 2004/05 $5,183,006 $490,771 $5,673,777 $10,282,66 1.81 4 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 2007/08 5,948,256 490,676 6,438,932 16,641,016 2.58 2008/09 5,946,731 490,465 6,437,196 15,825,773 2.46 (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. 2008109, 2004 Revenue City of La Quinta 026 20 E. ANNUAL DEBT SERVICE The following table sets forth the annual portion of debt service for 1994 Bonds revenue. Information contained in the table the corresponding Official Statements. debt service for the Bonds and the payable from the Housing Set -Aside below was gathered and verified from Maturity Date 1994 Bonds Annual Total September 1 Debt Service 11I Principal Interest Debt Service Combined 2009 $490,465 $1,670,000 $2,138,366 $5,946,731 $6,437,195.85 2010 490,280 1,740,000 2,104,966 5,949,931 6,440,211 2011 490,911 1,805,000 2,070,166 5,945,331 6,436,243 2012 490,307 1,890,000 2,029,553 5,949,106 6,439,414 2013 1,975,000 1,987,028 5,949,056 5,949,056 2014 2,075,000 1,937,653 5,950,306 5,950,306 2015 2,175,000 1,885,778 5,946,556 5,946,556 2016 2,290,000 1,828,684 5,947,369 5,947,369 2017 2,410,000 1,768,572 5,947,144 5,947,144 2018 2,535,000 1,705,309 5,945,619 5,945,619 2019 2,670,000 1,638,766 5,947,531 5,947,531 2020 2,810,000 1,568,678 5,947,356 5,947,356 2021 2,960,000 1,494,916 5,949,831 5,949,831 2022 3,115,000 1,417,216 5,949,431 5,949,431 2023 3,275,000 1,335,447 5,945,894 5,945,894 2024 3,450,000 1,249,478 5,948,956 5,948,956 2025 3,630,000 1,158,916 5,947,831 5,947,831 2026 3,810,000 1,068,166 5,946,331 5,946,331 2027 4,000,000 972,916 5,945,831 5,945,831 2028 4,200,000 872,916 5,945,831 5,945,831 2029 4,410,000 767,916 5,945,831 5,945,831 2030 4,635,000 657,666 5,950,331 5,950,331 2031 4,870,000 538,894 5,947,788 5,947,788 2032 5,120,000 414,100 5,948,200 5,948,200 2033 5,380,000 282,900 5,945,800 5,945,800 2034 5,660,000 145,038 5,950,075 5,950,075 Total (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. 2008109, 2004 Revenue City of La Quinta 027 21 F. REPORTING OF SIGNIFICANT EVENTS The Continuing Disclosure Covenants outline the Significant Events that must be reported if they are deemed material. The Authority has no knowledge that any of the events listed below have occurred or have not been previously reported during the fiscal year ended June 30, 2009. 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 Significant Event Notice has been disseminated regarding this matter. 2008109, 2004 Revenue City of La Quinta 028 22 A l l AUNIVILN I Z 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 Notice of Significant Event As of June 17, 2009 Also available at: WILLDAN Financial Services w .wllldan.com r.... 029 23 SIGNIFICANT EVENT NOTICE -RATING CHANGE This Reporting of a Significant Event has been prepared to satisfy the obligations as required of the La Quinta Financing Authority (the "Authority"), pursuant to the Official Statement, dated November 13, 1996, executed by the Authority, in connection with the execution and delivery of the Authority's $8,790,000 1996 Lease Revenue Refunding Bonds (La Quinta City Hall Project) (the "Bonds"), and the requirements of Rule 15c2-12 of the Securities Exchange Act of 1934, as amended. The following information is being provided as required under the section titled, "Continuing Disclosure" of the Official Statement in order to comply with the obligation to notify owners of the Bonds, the participating underwriters, and the Repository of the occurrence of a Significant Event. At issuance, the Bonds were insured by MBIA Insurance Corp. ("MBIA') and rated 'AAA' by Standard & Poor's ("S&P") and 'Aaa' by Moody's Investors Service, respectively. On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming the risk associated with its US municipal exposures, and the other (MBIA Corp) insuring the remainder of the portfolio. Subsequent to the restructuring of MBIA, Moody's Investors Service assigned ratings to the reinsured municipal securities based on the higher of (a) the insurance financial strength rating of MBIA Illinois, 'Baal'; or (b) the published underlying rating. Subsequent to the restructuring of MBIA, Standard & Poor's ("S&P") assigned its insurance financial strength rating of MBIA Illinois to'AA-minus'. • Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation ("NPFGC"). • On June 5, 2009, S&P downgraded its insurance financial strength rating of NPFGC from 'AA - minus' to'A'. Although the rating downgrade by S&P reflects NPFGC's financial ability to comply with the terms of its surety bond policy, such rating downgrade is not a measure or reflection of the Authority's underlying ability to pay principal of and interest on the Bonds. Information from rating agencies regarding the rating actions may be obtained from such rating agencies. CITY OF LA QUINTA www.la-quinta.org John Falconer Director of Finance P.O. Box 1504 78-495 Calls Tampico La Quinta, California 92247 (619)777-7150 DISCLOSURE CONSULTANT & DISSEMINATION AGENT Willdan Financial Services, formerly MuniFinancial Temecula, California 92590 (951)587-3500 www.wilidan.com �� 24 LA QUINTA FINANCING AUTHORITY $90,000,000 LOCAL AGENCY REVENUE BONDS 2004 SERIES A Riverside County, California Dated: June 29, 2004 CUSIP: 50420A Notice of Significant Event As of July 9, 2009 Also available at: *,�/WILLDAN Rnancial seNleefi www.willdan.ccm Its.. 031 25 SIGNIFICANT EVENT NOTICE -RATING CHANGE This Reporting of a Significant Event has been prepared to satisfy the obligations as required of the La Quinta Financing Authority (the "Authority"), pursuant to the Official Statement, dated June 21, 2004, executed by the Authority, in connection with the execution and delivery of the Authority's $90,000,000 Local Agency Revenue Bonds 2004 Series A (the "Bonds"), and the requirements of Rule 15c2-12 of the Securities Exchange Act of 1934, as amended. The following information is being provided as required under the section titled, "Continuing Disclosure" of the Official Statement in order to comply with the obligation to notify owners of the Bonds, the participating underwriters, and the Repository of the occurrence of a Significant Event. At issuance, the Bonds were insured by Ambac Assurance Corp. ("Ambac") and rated 'AAA' and 'Aaa' by Standard & Poor's ("S&P") and Moody's Investors Service, respectively. In addition, S&P assigned a municipal bond rating of'A+' to the Bonds. • On June 24, 2009, S&P downgraded its insurance financial strength rating of Ambac from 'A' to 'BBB'. Although the rating downgrade by S&P reflects Ambac's financial ability to comply with the terms of its surety bond policy, such rating downgrade is not a measure or reflection of the Authority's underlying ability to pay principal of and interest on the Bonds. Information from rating agencies regarding the rating actions may be obtained from such rating agencies. CITY OF LA QUINTA www.la-quinta.org John Falconer Director of Finance 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, California 92590 (951)587-3500 www.willdan.com 2004 Revenue Bonds City or La Quinfa«„ 032 26 LA QUINTA FINANCING AUTHORITY $90, 000, 000 LOCAL AGENCY REVENUE BONDS 2004 SERIES A Riverside County, California Dated: June 29, 2004 CUSIP: 50420A Notice of Significant Event As of August 10, 2009 Also avallable at: WILLDAN .,. J Financlsl SwIces w .wllldan.com 0.33 27 SIGNIFICANT EVENT NOTICE -RATING CHANGE This Reporting of a Significant Event has been prepared to satisfy the obligations as required of the La Quinta Financing Authority (the "Authority"), pursuant to the Official Statement, dated June 21, 2004, executed by the Authority, in connection with the execution and delivery of the Authority's $90,000,000 Local Agency Revenue Bonds 2004 Series A (the "Bonds"), and the requirements of Rule 15c2-12 of the Securities Exchange Act of 1934, as amended. The following information is being provided as required under the section titled, "Continuing Disclosure" of the Official Statement in order to comply with the obligation to notify owners of the Bonds, the participating underwriters, and the Repository of the occurrence of a Significant Event. At issuance, the Bonds were insured by Ambac Assurance Corp. ("Ambac") and rated 'AAA' and 'Aaa' by Standard & Poor's ("W") and Moody's Investors Service ("Moody's"), respectively. In addition, S&P assigned a municipal bond rating of'A+' to the Bonds. • On July 28, 2009, S&P downgraded its insurance financial strength rating of Ambac from 'BBB' to 'CC'. • On July 29, 2009, Moody's downgraded its insurance financial strength rating of Ambac from 'BaT to 'Caa2'. Although the rating downgrade by S&P and Moody's reflects Ambac's financial ability to comply with the terms of its surety bond policy, such rating downgrade is not a measure or reflection of the Authority's underlying ability to pay principal of and interest on the Bonds. Information from rating agencies regarding the rating actions may be obtained from such rating agencies. CITY OF LA QUINTA w da-quinta.org John Falconer Director of Finance 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, California 92590 (951) 587-3500 www.wilidan.com 2004 Revenue Bonds City of La Quints ,•.. G 3 4 m