2009 12 09 IABP.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CAI.A.r TANIP[CO 7 6 0 ) 7 7 7 - 7 0 0 0
LA QUINIA, CALIFORNIA 92253 FAX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Caucus Room
78-495 Calle Tampico- La Quinta, CA 92253
December 9, 2009 - 4:00 P.M.
CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II PUBLIC COMMENT- (This Is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
Approval of Adjourned Minutes of Meeting on November 4, 2009 for the
Investment Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for October, 2009
B. Continued Consideration of the Fiscal Year 2009/2010 Work Plan
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. City of La Quinta FY 08/09 Audited Financial Statements
B. Month End Cash Report — November, 2009
C. Pooled Money Investment Board Report — September, 2009
D. October 27, 2009 Joint Meeting Minutes with the City Council
VII BOARD MEMBER ITEMS
Vill ADJOURNMENT
PUBLIC NOTICES
The La Quinta Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please
call the Finance Department at 777-7150, twenty-four (24) hours in advance of the meeting and accommodations will be
made.
Any writings or documents provided to a majority of the Investment Advisory Board 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, CA
92253, during normal business hours.
ADJOURNED
INVESTMENT ADVISORY BOARD MEETING
November 4, 2009
CALL TO ORDER
Regular meeting of the La Quinta Investment Advisory Board was called to
order at the hour of 4:00 p.m. by Chairman Ross, followed by the Pledge of
Allegiance.
PRESENT: Board Members Olander, Moulin, Ross, Park and Rassi
ABSENT: None
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia,
Senior Secretary
II PUBLIC COMMENT - (This is the time set aside for public comment on any
matter not scheduled on the agenda.) - None
III CONFIRMATION OF AGENDA - Confirmed
IV CONSENT CALENDAR
Approval of Minutes of October 7, 2009 for the Investment Advisory Board
Board Member Park requested that the following corrections be made to
page 3,second paragraph:
the two year bill at 1 % and LAIF at F.193%, (...I
Page 3, fourth paragraph;
did not cover page 5 and staff would make the necessary correction
accordingly '=`; wouldmake the , adjustment '_ erdi,.v l.,
MOTION: It was moved Board Members Moulin/Olander to approve the
minutes of October 7, 2009 as amended. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for September 2009
Mr. Falconer presented and reviewed the staff report advising the
Board that page 3 reflects a decline in cash by $14.3 million due to an
$11 million semi-annual debt service payment and a one time
retirement payment to CalPERS of $1.3 million. The portfolio
increased by 20 days due to a purchase of a $5 million TLGP GE
Capital investment as a result of the maturity of a $2 million bond.
Mr. Falconer further advised that per the investment policy, the
medium term notes cap currently is at 10% and page 4 reflects the
overall medium term investments at 9%; unless the Board approves a
raise in the cap, staff will not be investing in any additional medium
term notes at this time. Mr. Falconer also advised that it was reported
by the U.S. Treasury that the current TLGP risk weighted factor
declined from 20% to 0%. In addition, he advised that LAIF recently
increased their limit from $40 million per account to $50 million per
account.
General discussion ensued amongst Board and staff regarding LAIF's
increase in their account limits.
Mr. Falconer continued to recap the Treasurers Report further advising
staff's decision to extend the terms in Treasuries to two years due to
the current yields, which will be reflected in the November report.
General discussion ensued amongst the Board regarding the upcoming
investment maturities, reinvestments, cash flow analysis and
immediate cash liquidity if needed.
In response to Chairman Ross, Mr. Falconer advised that the upcoming
$10 million investment due to mature will be reinvested for an
additional two years upon the City Manager's approval.
General discussion continued amongst the Board and staff regarding
the investments, interest earnings and yields.
Board Member Moulin stated that he feels that TLGP Notes do not fit
in the Corporate Notes category and should reconsider reclassifying
them.
Mr. Falconer responded by stating that the state code recognizes
TLGP's as Corporate Bonds, due to the fact that there is no other
category to list them under, and therefore he categorizes them under
the Corporate Notes category.
2
General discussion ensued amongst the Board with consideration of
the reclassification of the TLGP's, TLGP terms and consideration of an
increase of investment percentage in TLGP Notes.
Mr. Falconer stated that he feels the TLGP's should remain in the
Corporate Notes category and suggested the Board consider an
increase in the investment percentage.
In response to Board Member Moulin, Mr. Falconer advised that with
Council's approval a change to the investment policy could be made
anytime during the year.
General discussion ensued amongst the Board regarding TLGP
guaranties and their securities.
In response to Board Member Rassi, Mr. Falconer summarized the one
time payment to CALPERS.
In response to Board Member Moulin, Mr. Falconer advised that
spreads between Farm Credit and Fannie Mae vs. Treasuries currently
run three to four basis points to repay the sidefund liability.
General discussion ensued amongst the Board in regards to the current
status of Freddie Mac and Fannie Mae and possible consideration of
reinvesting in Freddie Mac once again.
Chairman Ross asked the Board and staff if they would like to
continue discussions regarding the reclassification of the TLGP Bonds
and/or possible increase in percentage invested in TLPG bonds. It was
the conclusion of the Board and staff to continue discussions to the
January meeting.
In response to Chairman Ross, Mr. Falconer reviewed page 9, which
reflects the first quarter forecasts. Mr. Falconer advised that the
forecasted Transient Occupancy Tax (TOT) was down, along with
other revenues. Mr. Falconer further advised that this current trend in
the decline in revenues is an impact to all cities, and staff is working
diligently to control expenditures.
General discussion ensued amongst the Board regarding the City's
forecasts and possible affects on investments and their maturities.
3
In response to Board Member Moulin, Mr. Falconer summarized the
cost analysis for the golf cart fees and advised that effective January
1, 2010 the fees for two years will be $20.
Motion - It was moved by Board Members Moulin/Olander to approve,
receive and file the Treasury Reports for September 2009. Motion
carried unanimously.
B. Continued Discussion of the Investment Advisory Board 2009-
2010 Work Plan
Mr. Falconer presented and summarized items of discussion derived
from the previous months meeting, the Money Market Mutual Funds,
CalTrust, the seven day Heritage Money Market Fund and the CAMP
Program. Mr. Falconer advised that these items were discussed as
possible alternatives to LAIF.
In response to Chairman Ross, Mr. Falconer summarized the state and
local codes for money market funds.
General discussion ensued amongst the Board and staff in regards
non -secured money market funds and the institution of the sweep
account.
Chairman Ross asked if the Heritage Money Market Fund would be an
alternative to LAIF the Board might consider. It was the consensus of
the Board not to use this particular investment instrument.
Mr. Falconer suggested that the Board possibly consider the CAMP
program and advised that the weighted average currently is 60 days
and stands at .28%.
Mr. Falconer stated that since attending the LAIF Conference he is
more at ease in still investing in LAIF.
Chairman Ross and Mr. Falconer summarized and commented on the
AB55 Loans discussed at the LAIF conference.
Chairman Ross advised that the preliminary calendar for the Board has
the Board meeting with the auditors in December and discussing
CDARS in January. Chairman Ross suggested that an Ad Hoc
committee be formed to review the pros and cons of the suggested
investment instruments and present the findings back to the Board at
rd
VI
the January meeting. Board Members Park and Moulin volunteered to
work along with Chairman Ross and staff.
Motion - It was moved by Board Members Moulin/Park to continue
the discussion of the 2009-2010 work plan. Motion carried
unanimously
CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report — October 2009
Mr. Falconer presented the month -end staff report advising that the
report included information on notes and bonds and their long term
rates.
In response to Chairman Ross, Mr. Falconer advised the Board of the
new Housing Authority (HA) entity recently created within the City.
He further advised that the HA was created to comply with the
low/moderate housing mandates as well as being able to have eminent
domain rights, own property and rehab homes owned by the City,
ultimately selling them thus generating revenue back into the General
Fund (which cannot be done through the RDA). The City Council will
serve as the Executive Board and the Housing Authority Board will be
comprised of citizens within the community.
General discussion ensued amongst the Board regarding the Housing
Authority.
Chairman Ross commented that the month of June was record month
for LAIF ending the portfolio at $62 billion.
Noted & Filed
B. Pooled Money Investment Board Reports — August 2009 and LAIF
Conference Materials
Mr. Falconer presented and summarized the LAIF Conference
material for the Board. Mr. Falconer stated that he felt this year's
conference reportings were very negative.
Chairman Ross summarized the economic forecast given at the
conference.
E
General discussion ensued amongst the Board and staff regarding
the conference material, in addition to mortgage rates, mortgage
delinquencies, commercial real estate and the regional
unemployment forecast.
Noted & Filed
VII BOARD MEMBER ITEMS - None
Vill ADJOURNMENT
MOTION — It was moved by Board Members Moulin/Olander to
adjourn the meeting at 5:12 p.m. Motion carried unanimously.
S bmitted by
Vianka Orrantia
Senior Secretary
0
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: December 9, 2009
ITEM TITLE:
Transmittal of Treasury Report
for October 31, 2009
BACKGROUND:
Attached please find the Treasury Report October 31, 2009.
RECOMMENDATION:
Review, Receive and File the Treasury Report for October 31, 2009.
. /P Iq 1/
John M. Falconer, Finance Director
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for October 31, 2009
DATE: November 30, 2009
Attached is the Treasurer's Report for the month ending October 31, 2009. The report is submitted to
the City Council each month after a reconciliation of accounts is accomplished by the Finance Department.
The following table summarizes the changes in investment types for the month:
Investment
Beoinnina
Purchased
I Notes
SOWMatured
Other
Ending
Change
LAIF
Certificates of Deposit
US Treasuries (2)
US Govl Sponsored Enterprises (2)
Commercial Paper (2)
Corporate Notes
MMutual Funds
$ 48,307,586
1,209.000
107,930,5220
15,286,794
$ 5,123,608
1
$ (3,475,000)
(7,000,000)
28,147
0
0
(12,093)
0
$ 49,956,194
1,209,000
100,958,667
0
0
15,274,701
0
1,648,608
0
(6,971,853)
0
0
(12,09
0
0
Subtotal 1$
172.733 900 1
$ 5,123,608
$ 10,475,000
$ 16,054
1 $ 167,398,562 1
$ 5,335,338
Cash 3 Is 846,446 $ 899,147 1 $ 1,745,593 11 899,147
Total 1 $ 173,580,346 $ 6,022,755 $ 10,475,000 $ 16,054 1 $ 169 144,155 1 $ 4,436.191
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 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.
Aegtk
ohn M. Falconer Date
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 negaWe balance will be offset with transfers from other investments
before warrants are presented for payment by the payee at the bank.
2
Treasurer's Commentary
For the Month of October 2009
Cash Balances - The portfolio size decreased by $4.4 million to end the month at $169.14
million. The major reason for the decrease was payments to the Riverside County Sherriff of
$2 million, semi annual debt service payments of $543,190 for the City Hall Bond issue, and
payments of $909,000 for Capital Projects.
Investment Activity - The average maturity of the portfolio decreased by 32 days to 90 days
at the end of October. The Treasurer follows a buy and hold investment policy and no
purchases were made in October.The sweep account earned $9 in interest income for the
month of October and the bank fees for the month were $ 1,907 which resulted in a net
decrease of $ 1,898 in real savings.
Portfolio Performance - The overall portfolio performance decreased by three (3) basis points
from the prior month and ended at .50% for the month, with the pooled cash investments
yielding .52%. The portfolio yield should continue to stay at these levels for the near future.
At this time last year, the portfolio was yielding 2.61 % which reflects the current interest
rate environment.
Looking Ahead
While the liquidity crisis impacting financial and business institutions has somewhat waned,
the Treasurer is still 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
non-TLGP corporate notes, non-TLGP commercial paper or GSE's due to the current economic
conditions affecting the financial markets; but instead will be investing in short term (up to
two year) U.S. Treasury Bills. Bond proceeds will be laddered in three- and six-month Treasury
bills as they mature.
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City or La alma
Conpamli" Rates of Interest
October 31. 2009
CRY of to Ouinci
Average I -I TreasuV BIIINNote I I Three
August 2006
4.9496
5.01%
4.97%
48
4,97%
195%
Sept 2006
4.08%
5.01%
4.99%
53
SOU%
5,02%
Oct 2006
5.00%
5.02%
6.01%
67
AIM%
5.10%
Nov 2006
604%
6.03%
503%
62
4.94%
5,13%
Dec 2D06
5,08%
5,04%
5,06%
80
4. 0%
5.13%
Jan 2007
5.18%
5.12%
5,16%
64
4.98%
- 5.16%
Feb 20D7
5.19%
5.13%
5.17%
45
4.95%
5.18%
Mar 2007
5,21%
5.03%
5.16%
67
4.88%
5.21%
Apr 20W
5,20%
6.14%
5.15%
42
4.84%
5.22%
May 2D07
5.20%
505%
SAM
32
4.81%
525%
June 2007
5.19%
4.86%
5.10%
85
481%
5.25%
FY 07108
July 2007
5.21%
4.90%
5.12%
129
4.60%
5.26%
August 2007
5,17%
4,85%
6,08%
109
4,%%
US%
SeIA2007
5.16%
4.86%
6.06%
129
4,00%
5.23%
Oct 2007
5.11%
4.85%
5.02%
116
3,95%
5.14%
Nov 207
6.03%
4.83%
4.96%
99
3.34%
4.96%
Dec 2007
4.95%
3.43%
C46%
123
3.39%
4.80%
Jan 2008
4,68%
3.33%
4,22%
96
2.31%
4.62%
Feb 2008
4.12%
3,24%
3,85%
86
2.07%
4.16%
Mar2008
4.07%
2.83%
3.67%
74
1.50%
3.78%
Apr 2008
3.45%
327%
3.41%
82
1.70%
3.90%
May 2008
3.14%
3,27%
3.17%
63
1,92%
3.07%
June 20ue
3.09%
1.94%
2.86%
80
2,14%
2.89%
FY 08/09
July 20D8
2.99%
1,93%
2.77%
62
170%
1.88%
2.29%
275%
2.18%
2.79%
August 20D8
3.16%
1.92%
2.88%
61
1.09%
1.89%
2,14%
238%
2.08%
278%
Sept mt;
281%
1.a2%
2.61%
37
1.42%
171Y%
196%
2.00%
2.13%
277%
Oct 2008
2.66%
2,61%
2.61%
29
0.90%
1.40%
1.72%
1,50%
2,07%
2.71%
Nov 2008
2.38%
236%
2.36%
64
0.15%
-040%
1.04%
1.25%
1,45%
2,57%
Dec 2008
1.80%
0.18%
1.42%
118.
0.05%
0.25%
0.59%
0.88%
0.97%
235%
Jan 2009
1.30%
0.18%
1.23%
82
11.15%
0.35%
0A3%
0.88%
0.31%
205%
Feb2009
1.23%
0.18%
1.11%
75
0.30%
0.50%
0.61%
0.88%
048%
187%
Mar20D9
1.20%
0.18%
1.13%
8e
0.20%
0.42%
0.70%
0.88%
037%
1.82%
Apr2009
084%
0.18%
0.85%
64
0.31%
0.33%
0.59%
0.88%
028%
1.61%
May 2009
0.92%
0.18%
0.84%
80
0.18%
DM%
0.53%
0.88%
0,23%
1.53%
June 2009
0.85%
0.29%
).80%
111
0.20%
0.35%
0.55%
1.13%
0.26%
1.38%
FYW10
July 2009
0.69%
0.30%
0,65%
111
0.19%
0.28%
0.47%
1,00%
028%
1.04%
August 2009
0.64%
0.30%
0,61%
92
0.16%
0.26%
0,40%
1.00%
024%
0.93%
Sept2009
050%
0.31%
0.53%
112
0.12%
0.19%
0.41%
1.00%
0,19%
075%
10
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11
INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: December 9, 2009
ITEM TITLE:
Continued Consideration of the Fiscal Year 2009/10 Work Plan
BACKGROUND:
Due to the auditors attendance at the December meeting, no discussion on this
item was planned for at this time. The Ad Hoc Committee (Chairman Ross and
Board Member Moulin) will be meeting after the distribution of the agenda and may
have a verbal update.
RECOMMENDATION:
Continued Discussion of the Investment Advisory Board 2009/10 Work Plan.
John M. Falconer, Finance Director
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item A
Meeting Date: December 9, 2009
ITEM TITLE:
City of La Quinta Fiscal Year 2008/09
Audited Financial Statement
BACKGROUND:
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.
A , �t 1�'�
John M. Falconer, Finance Director
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2009
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2009
Prepared By
I9I1f_LN1�137�Id�li
JOHN M.FALCONER
Director of Finance
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2009
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letterof Transmittal............................................................................................................................
i
List of Principal Officials..................................................................................................................
wu
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.................................................................................................................13
Statementof Activities....................................................................................................................14
Fund Financial Statements:
Balance Sheet — Governmental Funds...........................................................................................16
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets.......................................................................................................19
Statement of Revenues, Expenditures and Changes in Fund
Balances — Governmental Funds................................................................................ ................20
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................23
Budgetary Comparison Statement by Department — General Fund..............................................24
Budgetary Comparison Statement — Low/Moderate Income Housing PA No. 1............................25
Budgetary Comparison Statement — Low/Moderate Income Housing PA No. 2............................26
Statement of Net Assets — Proprietary Funds................................................................................27
Statement of Revenues, Expenses and Changes in Fund Net Assets —
ProprietaryFunds ................................... _....._............................................... _....--..... _...............28
Statement of Cash Flows — Proprietary Funds...............................................................................29
Statement of Fiduciary Net Assets - Fiduciary Funds....................................................................31
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2009
TABLE OF CONTENTS (Continued)
Page
Number
Notes to Financial Statements........................................................................................................33
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........................................................................................................................87
Library..................................................................................................................................88
FederalAssistance.................................................................................................................89
SLEBG....................................................................................................................................90
IndianGaming........................................................................................................................91
Lightingand Landscape.........................................................................................................92
RCTC......................................................................................................................................
93
Quimby...................................................................................................................................94
PublicSafety...........................................................................................................................95
ArtsIn Public Places...............................................................................................................96
SouthCoast Air Quality..........................................................................................................97
AB939....................................................................................................................................98
CV Violent Crime Task Force.. ..........................................................................
.................... 99
Proposition1B Fund.............................................................................................................100
Budgetary Comparison Schedules — Capital Projects Funds
CapitalImprovement............................................................................................................101
Infrastructure.........................................................................................................................102
Transportation.......................................................................................................................103
Parksand Recreation...........................................................................................................104
CivicCenter..........................................................................................................................105
LibraryDevelopment............................................................................................................106
CommunityCenter................................................................................................................107
StreetFacility........................................................................................................................108
ParkFacility..........................................................................................................................109
FireFacility...........................................................................................................................110
2004 Low/Mod Bond.............................................................................................................111
Redevelopment Agency PA No. 1 — Capital Projects..........................................................112
Redevelopment Agency PA No. 2 — Capital Projects..........................................................113
Budgetary Comparison Schedules — Debt Service Funds
Financing Authority — Debt Service......................................................................................114
Redevelopment Agency PA No. 1 — Debt Service...............................................................115
Redevelopment Agency PA No. 2 — Debt Service...............................................................116
Combining Statement of Net Assets — Internal Service Funds....................................................118
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2009
TABLE OF CONTENTS (Continued)
Page
Number
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets — Internal Service Funds...............................................................................119
Combining Statement of Cash Flows — Internal Service Funds...................................................120
Combining Balance Sheet — All Agency Funds............................................................................122
Combining Statement of Changes in Assets and Liabilities —All Agency Funds .........................123
STATISTICAL SECTION
NetAssets by Component............................................................................................................126
Changesin Net Assets.................................................................................................................127
Changes in Net Assets — Governmental Activities.......................................................................128
Changes in Net Assets — Business -type Activities.......................................................................129
Fund Balances of Governmental Funds.......................................................................................130
Changes in Fund Balances of Governmental Funds....................................................................131
Assessed Value and Estimated Actual Value of Taxable Property..............................................132
Assessed Value and Estimated Actual Value of Taxable Property -
RedevelopmentAgency...............................................................................................................133
Direct and Overlapping Property Tax Rates ......................................... :............... ........................
134
Principal Property Taxpayers.......................................................................................................135
Property Tax Levies and Collections... .........................................................................................
136
Ratios of Outstanding Debt by Type............................................................................................137
Ratio of General Bonded Debt Outstanding.................................................................................138
Direct and Overlapping Debt........................................................................................................139
Legal Debt Margin Information.......................................................................................
...........140
Pledged -Revenue Coverage.....................................................................................................141
Demographic and Economic Statistics.........................................................................................142
PrincipalEmployers......................................................................................................................143
Full-time City Employees..............................................................................................................144
OperatingIndicators.......................................................................................................145
Capital Asset Statistics.................................................................................................................146
Schedule of Insurance in Force....................................................................................................147
Q
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OF
November 17. 2009
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, 2009. 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 Soil & Lunghard LLP Certified Public Accountants have issued an unqualified
opinion on the City of La Quinta financial statements for the year ended June 30,
2009. 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.
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 June 2009, the total workforce for the City of La Quinta was 14,800 of which
13,700 were employed for a 7.4% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 14.0% and the statewide
unemployment rate of 11.6%.
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 Fiscal Year1999-2000 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.
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 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 314%. Two Departments that have exceeded the average include
Community Services (389%), and Public Safety (379%). 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 203%. Sources that exceeded the average include intergovernmental
(373%), taxes (233%), and interest earnings (225%). 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 taxes, the increase is due greatly to the increase in sales tax revenues from the
commercial development along Highway 111. And finally, the increase in interest
earnings is due to greater General Fund reserves and additional advances between
the General Fund and the Redevelopment Agency. Offsetting these increases were
decreases in licenses and permits (-65%) and charges for services (-65%) from the
same period ten years ago. These decreases can be attributed to the rapid slow
down to development related activates experienced in the City of La Quinta in Fiscal
Year 2008-2009.
While the City has experienced record setting growth in the past, the recession of
Fiscal Year 2008-2009 has impacted the City of La Quinta. This downturn has
resulted in our residents and businesses experiencing: (1) a higher level of
unemployment, (2) lower property values; (3) more commercial store closings and
(4) more home foreclosures than in previous years. In addition, the credit crisis has
resulted in fewer new home starts and new businesses delaying their plans to open
stores in the City. While the City is the home of large and small retailers and hotels,
no significant store openings have occurred in Fiscal Year 2008-2009 and several
large retailers and a hotel have closed their doors. This has resulted in a reduction in
actual tax collections in Fiscal Year 2008-2009 and downward revenue projections
for Fiscal Year 2009-2010. If the recession continues, as it very well might, future
revenue declines past Fiscal Year 2009-2010 may be on the horizon. In Fiscal Year
2008-2009, the City did tighten its fiscal belt at its mid year review and will have to
continue to monitor and possibly further reduce expenditures in Fiscal Year 2009-
2010 given the revenue shortfalls that may continue to occur.
Long -tern 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 81,771 versus the current 42,958, the annual revenues into the General Fund will
be $3,276,000 less than expenditures. With this information provided during the
mid -year financial review, 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 2008-2009, the General Fund balance decreased by $125,000
consisting of revenue decreases primarily in taxes and intergovernmental offset by
expenditure savings in the police and fire divisions in the Public Safety Department,
the Planning & Development Administration division, and the Street Maintenance
division in Public Works Department.
The General Fund balance as of June 30, 2009 was $92.3 million of which $46.2
iv
million versus $45.5 million in Fiscal Year 2007-2008 was reserved and $46.1 million
versus $47.0 million in Fiscal Year 2007-2008 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 balance at year end can be found in the Footnotes
to the Financial Statements. Additional components of the strategic planning
process include the Economic Development Plan, the Capital Improvement
Program, the Annual Budget and the Five -Year Resource Allocation Plan. An
explanation of each of these documents is provided below.
Economic Development Plan
This plan outlines a vision and direction for the City's economic development
activities. It presents the mission statement, implementation policies, projected
resources, and business plan the City and the La Quinta Redevelopment Agency will
follow to sustain a comprehensive economic development effort. It is goal -oriented
in that the economic development efforts specified in the plan are a key to
generating the financial resources necessary to support both the Resource
Allocation Plan and the Capital Improvement Plan.
Capital Improvement Plan
This plan is primarily a planning document that establishes five-year funding
priorities for capital improvements. This plan also includes a listing of all the other
desired capital improvements that cannot, or need not, be funded within the five-year
horizon and totaled $84.5 million.
Five -Year Resource Allocation Plan
This plan is primarily a planning document that provides a five-year horizon for
forecasted operational needs of each department, as well as the City as a whole.
This plan is a cyclical review of all operations expenditures to reassess funding
mechanisms behind personnel responsibilities and the various service levels of all
programs.
Annual Budget
This document is the annual implementation tool for the overall planning process.
The budget will encompass each element of the strategic planning effort and will
implement: the goals of the Economic Development Plan; the resource and demand
allocation outlined in the Five -Year Resource Allocation Plan; and the capital
improvement investment for a given year.
v
Relevant Financial Policies
The State of California has mandated 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 Fiscal Year 2005-2006 with a similar amount in
Fiscal Year 2004-2005 to meet the State budget crisis. Again, in Fiscal Year 2009-
2010 the State of California has mandated that $965,000 in General Fund property
taxes be transferred to the State. Also, from Fiscal Year 2002-2003 through Fiscal
Year 2005-2006, 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 from Fiscal
Year 2006-2007 through Fiscal Year 2008-2009, the State budget crisis of Fiscal
Year 2009-2010 will result in an additional diversion of $23.69 million and $4.9
million in Fiscal Year 2010-2011 from the La Quinta Redevelopment Agency for a
total take away of $36.3 million.
Major Initiatives
The La Quinta Redevelopment Agency (Agency) will be spending a considerable
amount of effort to acquire sites and facilitate the development of affordable housing
units in the City. Toward this end, the Agency is working in partnership with the
Coachella Valley Housing Coalition to construct 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 and land valued at $8.85 million.
The City has a major public facility expansion underway rebuilding Fire Station 32 at
its new location at Avenue 52 and Desert Club. Once completed, this $4.2 million
facility will better serve the residents of the La Quinta Cove and surrounding areas.
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, permanent clubhouse, and infrastructure in the
planning stages. The Agency continues to seek quality development opportunities
for future hotel(s) on the property to generate additional General Fund revenues.
vi
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada
(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, 2008. This was the thirteenth 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 comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that
our current CAFR continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient and
dedicated service of the finance department staff. Credit also must be given to the
Mayor and City Council for their support in maintaining the highest standards of
professionalism in the management of the City of La Quinta's finances.
Respectfully submitted,
Thomas P. Genovese John M. Falconer
City Manager Finance Director
vii
City of La Quinta
Directory of Officials
June 30, 2009
CITY COUNCIL
Don Adolph, Mayor .
Terry Henderson. Mayor Pro Tent
Linda Evans, Council Member
Kristy Franklin, Council Member
Stanley Snitf, Council Member
ADMINISTRATION
Thomas P: Genovese, City Manager
Doug Evans, Assistant City Manager — Development Services
Bret Plumlee, Assistant City Manager -- Management Services
John M. Falconer, Finance Director
Tom Hartung, Building & Safety Director
Bdie Hylton, Community Services Director
Kathy Jenson, City Attorney
Les Johnson, Planning Director
Tim Jonasson. Public Works Director/City Engineer
Veronica Montecino, City Clerk
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Quinta
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
x
CERTIFIED PUBLIC ACCOUNTANTS
• Brandon W. Burrows, C.P.A
• Donald L. Parker, CAA
• Michael K. Chu, C.P.A
• David E. Hale, C.P.A, C.F.P.
A Professional Corporation
• Donald G. Slater, C.P.A
• Richard K. Kikuchi, C.PA
• Susan F. Matz, C.P.A.
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
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, 2009, 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, 2009, and the
respective changes in financial position and cash flows, where applicable, and the respective budgetary
comparisons for the General Fund, the Low/Moderate Income Housing PA No. 1 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
September 22, 2009, 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.
Lance, Soil & Lu llhard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 , Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle • Suite 103 • Murrieta, CA 92562 • TEL: 951.304.2728 • Fax: 951.304.3940
a.
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.
September 22, 2009
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, 2009. 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
$564,221,000 (net assets). Of this amount, $92,487,000 (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 $16,919,000 and the business -type total net
assets decreased by $1,069,000 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 $180,428,000, a decrease of $7,397,000 in comparison with the prior year.
Approximately 60 percent of this total amount, $109,087,000, 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
$18,988,000 or 41 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
$241,665,000 to $237,368,000 through normally scheduled debt service payments.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of La Quinta's basic
financial statements. The City of La Quinta's basic financial statements comprise three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of the
City of La Quinta's finances, in a manner similar to a private -sector business.
The statement of net assets presents information on all of the City of La Quinta's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of La Quinta is
improving or deteriorating.
The statement of activities presents information showing how the government's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of La Quinta that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the City of La Quinta include general
government, public safety, community services, planning and development and public works. The
business -type activities of the City of La Quinta include the SilverRock Golf course operations.
The government -wide financial statements include not only the City of La Quinta itself (known as the
primary government), but also the La Quinta Redevelopment Agency and the La Quinta Financing
Authority. Although legally separate entities they function for all practical purposes as departments of the
City of La Quinta, and therefore have been included as an integral part of the primary government.
The government -wide financial statements can be found in the table of contents under the Financial
Section of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City of La Quinta, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City of La Quinta can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -term inflows and outflows of spendable
resources; as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of La Quinta maintains thirty 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, two (2) special revenue funds, 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 six (26) 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.
4
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.
The combining statements referred to earlier in connection with non -major governmental 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 government's financial position.
In the case of the City of La Quinta, assets exceeded liabilities by $564,221,000 at the close of the most
recent fiscal year, which is $15,850,000 greater than the previous year.
The largest portion of the City of La Quinta's net assets, which was 65% this year and 70% 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 Quints 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
2009
2008
2009
2008
2009
2008
Assets:
Current and other assets
$
225,009,148
$ 233,280,016
$ (3,721,932)
$
(2,917,790)
$
221,287,216
$ 230,362,226
Capital assets
559,028,995
536,929,916
42,821,825
43,459,062
601,850,820
580,388,978
Total assets
$
784,038,143
$ 770,209,932
$ 39,099,893
$
40,541,272
$
823,138,036
$ 810,751,204
Liabilities:
Current liabilities
$
22,137,899
$ 21,364.433
$ 215,522
$
191,734
$
22,353,421
$ 21,556,167
Non -current liabilities
236,278,140
240,142,880
285,217
681,047
236,563,357
240,823,927
Total liabilities
$
258,416,039
$ 261,507,313
$ 500,739
$
872,781
$
258,916,778
$ 262,380,094
Net assets:
Invested in Capital assets,
-
net of related debt
$
323,669,955
$ 343,019,328
$ 42,767,282
$
42,778,015
$
366,437.237
$ 385,797,343
Restricted
105,297,168
86,041,189
-
-
105,297,168
86,041,189
Unrestricted
96,654,981
79,642,102
(4,168,128)
(3,109,524)
92,486,853
76,532,578
Total Net Assets
$
525,622,104
$ 508,702,619
$ 38,599,154
$
39,668,491
$
564,221,258
$ 548,371,110
An additional portion of the City of La Quinta's net assets (19 percent versus 16 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 - $92,487,000 (16 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 $4,168,000.
Governmental activities
Governmental activities increased net assets by $16,919,000 accounting for a 3 percent change in the
net assets from the previous year. Key elements of these changes are as follows:
City of La Quinta Changes in Net Assets
Govemmemzl advifies
Business -type ac fides
Tobl
2009
2008
Change
2009
2"
Canna
2009
2"
Change
Revenues:
Pro¢am revfar
onange
$
Y 4,461,560
Y (4,819.616
f 3,368,135
3 3,814133
E (446,098)
$
f 8,281,793
$-I4,819.616
Oper4l contrlbus
op.bsfor ft
10,]25.280
0.725,280
5,9
4819.616
-
-
-
10.647280
0.72580
5,M.419
gnwds nd
Capital grants and mntribulions
10,64],2]0
.419
50.090,419
(3s.a4J.149)
-
-
-
tas47z76
50,090,419
9,443,149
(39,d43.1d9)
General
ly W.
639,278
-
-
-
6.653,883
6,641.105
639.2]8
00na
GN
'7M,5B3
50,785,819
.M1.105
69,641,10]
(],905,288)
-
-
-
50,]35,819
50641,10]
(7,905,288)
lnvestinentmanna
slnnann
],387$44
(2,843,2951
3,074
4,310
(1,236)
➢,390.318
13.W3.]99
R,844,181)
ie
inlieu
3.940,801
3,23g489
3,803,647
137,154
-
-
-
3.940.801
3.803.64]
137,154
Gann S)a
Gaon sale of capital assets
21.542
(05,804)
-
-
-
57,346
(35.804)
ans)en
Misraeanepus
118.567
20,627
1,220,62]
(1,102.7U)
18.567
11B,567
(7,527,116)
Total raveues
93.351.302
140,431,164
(4],0]9)82)
3,371,209
J.818,543
(447,334)
96,722,591
4,220,627
144,249,]0]
(47,52],11fi)
Bzpenaes:
Generalg anent.
7,M,146
6,953,073
BB3,073
-
-
-
7,83Q146
6,953,073
883,073
Patdm We,
19.7M.M1
13.472.036
6,264,905
-
-
-
19,736,Ni
13.472,036
6,264,905
Planning and development
16,162.639
35.323,858
(19,161.169)
-
-
-
161162.689
3.MI58
(19,161,169)
Community servicrs
5MIM
5.797,116
168734
-
-
-
5,%3,B50
5797.116
166.734
Pat,k ewts
11,10g833
11.097,526
3,307
-
-
11,1wen
11,097,526
3,307
tmerest on laW4 debl
15,631.4M
15,522.441
108,997
-
-
-
15,01.4M
15.522,441
108,997
Gaff..
4,440,546
4,809,302
(368756)
4,440,546
4,809,302
(368,756)
Total eyienses
76,434,897
88,166.050
(11,734,153)
4,440,546
4,WG.W2
(360,7%)
80,872,443
92,975,352
(12,102,909)
Invease in nelassels babe transfers
and! restatements
16,919,485
52,265,114
(36345,629)
(1,W9,337)
(M.759)
(78,578)
15,M.148
51,274,355
(35,424,207)
Transfers
-
-
_
_
_
_
Contributions
-
-
-
352.68]
(352,687)
-
359,687
(352,687)
Restatements
I... in netassets
16,919,4M
52,265,114
(35,345,629)
(1,069,337)
(63@072)
(431265)
15.850,148
51,fi27,042
(35,776,894)
Net asse6-711Q
508702,619
4% 437 505
52,265,114-
39,60.491
40,3Wb63
(638,072)
548.371.110
4%J44,6BB
51,627,042
Nel assets-6r MX*
$ 52s,622,104
E 508702,619
$ 16,919,485
E MS99,154
$ 39,fi68,491
$ (1,06%33]I
$ S .221258
$ 548,371,110
$ 15,85Q148
Revenues decreased by $47,080,000 with the largest category decrease in capital grants and
contributions $39,443,000. Capital grants and contributions decreased primarily as a result of the
acquisition of Highway 111 from Caltrans in the prior fiscal year 2007-2008 for $37,617,000. In addition,
the other taxes category decreased $7,900,000 consisting primarily in decreased property tax increment
(net of pass through payments) ($5,413,000), sales taxes ($1,213,000), and transient occupancy taxes
($847,000).
Expenses decreased by $11,734,000 with the two largest category changes being a decrease in Planning
and Development ($19,161,000) and an increase in the Public Safety category of $6,265,000. The
decrease in the Planning and Development costs is a result of completion of the Vista Dunes Courtyard
Homes. The increase in the Public Safety costs is a result of higher Police costs and construction
beginning on the Station 32 Fire station.
There were no contributions in assets from the governmental activities to the
business -type activities.
Expenses and Program Revenues - Government Activities
❑ Expenses
25,000,000
—_—.-----__--
- _
0Pm9mm rvenum
20.000,000
19,736,941
16,162,689 15.846,470 15.631,938
15,000,000
11.100.833
10,000,000
'..
7.836,146
4,344.070 5,963,850
5,000.000
3,728,554
41192
170,140
General
Public safety Planning and Cormvrniry services Public works Interest emense
government
development
Expenses and Program Revenues - Business -type Activities
• - ❑ Expenses
5.000.000
..__. __ _ .._.. _ 0 Program revenues
4,440,546
4,500.000
4,000.000
3,500.000
3,368,135
3,000.000
2.500.000
-
2,000,000
1,000,0w
500,000
Golf
7
Business -type activities
This was the fourth full year of operations for the SilverRock Golf fund since the golf course began early
operation in 2005.
Net assets decreased by $ (1,069,000) from the effects of an operating loss.
Charges for services primarily consisted of green fees and totaled $3,368,000 which was $446,000 less
than the previous year with golf course expenses of $4,441,000, which was $369,000 less than the
previous year.
Financial Analysis of the Government's Funds
As noted earlier, the City of La Quinta uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds - The focus of the City of La Quinta's governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of La Quinta's financing requirements. In particular, unreserved fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the City of La Quinta's governmental funds reported combined
ending fund balances of $180,428,000, a decrease of $7,397,000 in comparison with the prior year. Of
this amount $109,087,000 or 60% constitutes unreserved, which is available for spending at the
government's discretion. The remainder of fund balance ($71,341,000) is reserved or designated to
indicate that it is not available for new spending because it has already been committed to 1) to pay debt
service ($18,729,000), 2) to advance funds to other funds ($50,459,000), or 3) for a variety of other
restricted purposes ($2,153,000).
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 $46,128,000, while total fund balance reached
$92,327,000. As a measure of the general fund's liquidity, it may be useful to compare the total general
fund balance to budgeted expenditures (including transfers out). The total fund balance represents 200
percent of the total budgeted expenditures.
The City of La Quinta's general fund balance decreased by $125,000 during the current fiscal year. Key
factors in this slight decrease are as follows:
• Actual expenditures were $9,876,000 less than the final budget. Divisions that wete under budget for
the year were Street Maintenance ($2,230,000), Police ($495,000), Fire ($827,000), and Planning &
Development Administration ($775,000). In addition, actual transfers out were $4,276,000 less than
budgeted with $3,749,000 of this amount unspent Fire Station 32 construction costs and $430,000 for the
Avenue 52 and Desert Club traffic signal which will both be carried over to fiscal year 2009-2010.
• Actual revenues were $7,589,000 less than the final budget. Categories that received less than the final
budget were taxes ($2,377,000) and intergovernmental ($5,534,000). Sales taxes were $952,000 less
than budgeted and transient taxes were $1,145,000 less and budgeted. Actual sales tax and transient
occupancy tax collections in fiscal year 2008-2009 were $1,566,OOO and $1,018,000, respectively, less
than Fiscal year 2007-2008. Intergovernmental revenues were less than budgeted because drawdowns
from the Fire Tax Credit were not necessary for fire operations ($827,000), Fire Station 32 construction
costs ($3,749,000), and the Avenue 52 Desert Club Traffic Signal ($430,000).
Low/Moderate Income Housing PA No. 1 and 2 Fund
The Low/Moderate Income Housing No. 1 and 2 Funds are used to account for the promotion of low and
moderate income capital projects in the La Quinta Redevelopment Project Area 1 and 2 from 20% of the
tax increment property tax generated in these Project Areas.
During fiscal year 2008-2009, PA 1 net changes in fund balance increased by $462,000 and PA 2 net
changes in fund balance increased by $3,374,000 from fiscal year 2007-2008. The fund balance available
in these funds at year end was $6,248,000 and $19,887,000, respectively. During the fiscal year, the
Low/Moderate Income Housing PA No. 1 Fund purchased the Washington Street Apartments for
$6,188,000 and assumed $2,333,000 in debt from the previous owner.
Capital Improvement Fund
The fund is primarily used to record the expenditure of funds for capital projects. Major capital projects
funded during fiscal year 2008-2009 were Wolff Waters Apartments, Highway 111 widening between
Adams Street and Jefferson Street, Fred Waring Drive street improvements, Ave 58 street improvements,
and SilverRock Clubhouse planning expenditures.
Civic Center Fund
The fund is primarily used to collect developer impact fees for the construction of the City Hall expansion
and the repayment of a portion of the debt service on the original City Hall construction. The City Hall
expansion was completed in fiscal year 2007-2008 and the final repayment of the original City Hall
construction bonds is scheduled in fiscal year 2018-2019. A $9.62 million advance from the General
Fund is outstanding at the end of fiscal year 2008-2009.
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 $5 million transfer from the Debt Service Fund for capital projects including the permanent
SilverRock Clubhouse and SilverRock infrastructure improvements.
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 in Project Area 1 increased by $398,000, even with a $5 million transfer to the
Redevelopment Agency Project Area 1 Capital Project Fund and a decrease of $2.96 million of property
tax increment revenues. The Debt Service Project Area 1 Fund did not have to make an estimated $4.85
million payment to the State of California for an Educational Relief Augmentation Fund (ERAF) payment
in fiscal year 2008-2009.
The fund balance in Project Area 2 increased by $1.33 million during the current fiscal year to reduce the
fund balance deficit from -4.46 million to -3.13 million. The key factor in this increase was that even while
property tax increment revenue was $390,000 less than the prior Fiscal year, revenues still continued to
exceed expenditures in the fund.
Proprietary funds
The City of La Quinta's proprietary funds provide the same type of information found in the government -
wide financial statements, but in more detail.
The financial activities of the City enterprise fund have already been addressed in the discussion of the
City of La Quinta's business -type activities. In addition, the City has three (3) internal service funds to
accumulate resources for equipment and vehicle replacement, information technology activities, and for
park equipment and facility replacement.
General Fund Budaetary Hiohliohts
During the year there was a $5,683,000 increase in appropriations and transfers out between the original
($40,554,000) and final amended budget ($46,237,000). Following are the main components of the
changes:
• During the mid -year review, the General Fund budget for various divisions was reduced by $954,000
based upon an estimated decrease of revenues forecasted for fiscal year 2008-2009;
• $4,216,000 for the Fire Station 32 construction and $430,000 for the Avenue 52 traffic signal were
appropriated. These two projects are funded by a combination of Fire Tax credit funds and developer
impact fee funds; and,
• The fiscal year 2007-2008 budget included carryover encumbrances of $161,500 and $2,606,000 in
carryover appropriations into fiscal year 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, 2009, amounts to $601,851,000 (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 activities
Business -type
activities
Total
2009
2008
2009
2008
2009
2008
Land $
75,663,033
$ 80,645,874
$ 36,840,832
$ 36,840,832
$ 112,503,865
$ 117,486,706
Buildings and improvements
45,394,528
44,355,498
5,598,377
5,832,933
50,992,905
50,188,431
Equipment and furniture
1,002,533
913,530
378,554
773,115
1,381,087
1,686,645
Vehicles
652,497
655,934
2,036
6,105
654,533
662,039
Software
-
-
2,026
6,077
2,026
6,077
Infrastructure
393,914,087
370,659,873
-
-
393,914,087
370,659,873
Construction in progress
42,402,317
39,699,207
-
-
42,402,317
39,699,207
Total $
559,028,995
$ 536,929,916
$ 42,821,825
$ 43,459,062
$ 601,850,820
$ 580,388,978
Major capital asset events during the current fiscal year included the following:
Governmental activities
• The transfer of $8,845,000 of land held by the Redevelopment Agency to the Coachella Valley Housing
Coalition for the Wolff Waters Affordable Housing Project;
• Recording infrastructure improvements, including developer dedications of $6,364,000, to street
improvements, street right of way, street sidewalks and curbs and gutters, and street medians;
Completed construction of the Phase 2 Jefferson Street Improvements totaling $15,485,000;
10
• Completed widening of Highway 111 between Adams Street and Jefferson Street to three lanes totaling
$2,952,000;
• Completed construction of Avenue 58 between Madison Street and Jefferson Street totaling $1,128,000;
and,
The purchase of the land and Washington Street Apartment buildings for affordable housing totaling
$6,183,221.
Business -type activities
• No improvements to the SilverRock Resort were made in fiscal year 2008-2009.
Additional information on the City of La Quinta's capital assets can be found in Footnote 6 to the financial
statements.
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt outstanding of
$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
Governmental activities
Business -type activities
Total
2009
2008
2009 2008
2009
2008
Debt type:
Capital leases
$ 149,169
$ 182,094
$ 285,217 $ 681,047
$ 434,386
$ 863,141
Compensated absences
919,100
833,155
- -
919,100
833,155
Developer agreement
343,814
499,786
- -
343,814
499,786
Pass through agreement
2,874,653
3,660,621
- -
2,874,653
3,660,621
Dut to government agencies
2,330,065
1,828,311
- -
2,330,065
1,828,311
Loans payable
1,556,283
-
- -
1,556,283
-
Tax allocation bonds
139,190,000
142,265,000
- -
139,190,000
142,265,000
Revenue bonds
89,720,000
91,715,000
- -
89,720,000
91,715,000
Total
$ 237,083,084
$ 240,983,967
$ 285,217 $ 681,047
$ 237,368,301
$ 241,665,014
The total outstanding debt decreased by $4,297,000 during fiscal year 2008-2009.
In conjunction with the purchase of the land and Washington Street Apartment buildings, the La Quinta
Redevelopment Agency assumed a United States Department of Agriculture (USDA) outstanding note of
$761,000 and a loan from Provident Bank of $1,572,000 from the previous owner of the Washington
Street Apartments.
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 fiscal year 2009-2010:
• The City of La Quinta had a 7.4 versus 4.3 percent last year unemployment rate. This rate is
significantly lower than the Riverside County unemployment rate of 14.0 versus 8.4 percent last year and
the statewide unemployment rate of 11.6 versus 7.0 percent last year.
• 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 fiscal year 1999-2000 to $12.52 billion or over 465 percent.
11
• During the current fiscal year, the general fund net loss was $(125,000) and $3,447,000 of General fund
balance has been designated for carry over appropriations and encumbrances.
• The State of California fiscal year 2009-2010 and 2010-2011 budgets include a State-wide diversion of
tax increment funding from Redevelopment Agencies. The La Quinta Redevelopment Agency portion of
these take-aways is estimated to be $23,560,000 in fiscal year 2009-2010 and $4,851,000 in fiscal year
2010-2011.
The City of La Quinta adopted a balanced general fund budget for fiscal year 09/10.
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.
12
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
JUNE 30, 2009
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Internal balances
Prepaid costs
Deposits
Inventories
Due from other governments
Deferred charges
Restricted assets:
Cash and investments with fiscal agent
Capital assets not being depreciated
Capital assets, net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Due to other governments
Retentions payable
Unearned revenue
Deposits payable
OPEB Obligation
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
$ 174,164,370 $ 237,757 $ 174,402,127
200,550
15,356
215,906
2,426,472
-
2,426,472
13,239,548
-
13,239,548
291,185
231
291,416
4,290,475
(4,290,475)
-
31,621
1,865
33,486
14,370
250,000
264,370
-
63,334
63,334
7,380,249
-
7,380,249
4,241,470
-
4,241,470
18,728,838
-
18,728,838
401,585,410
36,840,832
438,426,242
157,443,585
5,980,993
163,424,578
784,038,143
39,099,893
823,138,036
3,623,794
161,908
3,785,702
434,287
2,093
436,380
4,071,598
-
4,071,598
963,333
-
963,333
2,322,197
-
2,322,197
5,075,887
2,521
5,078,408
5,538,859
49,000
5,587,859
107,944
-
107,944
7,535,512
230,674
7,766,186
228,742,628
54,543
228,797,171
258,416,039
500,739
258,916,778
323,669,955
245,468
32,755,936
924,450
65,881,216
5,490,098
96,654,981
$ 525,622,104
42,767,282
(4,168,128)
$ 38,599,154
366,437,237
245,468
32,755,936
924,450
65,881,216
5,490,098
92,486,853
$ 564,221,258
See Notes to Financial Statements 13
CITY OF LA QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2009
Functions/Programs
Primary Government:
Governmental Activities:
General government
Public safety
Planning and development
Community services
Public works
Interest on long-term debt
Total Governmental Activities
Business -Type Activities:
Golf Course
Total Business -Type Activities
Total Primary Government
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
$ 7,836,146
$ 25,053
$ 145,087
$ -
19,736,941
1,373,952
2,333,764
20,838
16,162,689
138,391
3,770,704
434,975
5,963,850
275,178
129,414
-
11,100,833
1,308,702
4.346,311
10,191,457
15,631,438
-
-
-
76,431,897
3,121,276
10,725,280
10,647,270
4,440,546 3,368,135
4,440,546 3,368,135
$ 80,872,443 $ 6,489,411 $ 10,725,280 $ 10,647,270
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 asset
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 14
Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ (7,666,006)
(16,008,387)
(11,818,619)
(5,559,258)
4,745,637
(15,631,438)
(51,938,071)
(51,938,071)
6,653,583
36,702,197
7,279.513
4,480,467
1,533,249
285,304
455,089
7,387,244
3,940,801
21,542
118,567
$ $ (7,666,006)
(16,008,387)
(11,818,619)
(5,559,258)
4,745,637
(15,631,438)
(51,938,071)
(1,072,411) (1,072,411)
(1,072,411) (1,072,411)
(1,072,411) (53,010,482)
3,074
6,653,583
36,702,197
7,279,513
4,480,467
1,533,249
285,304
455,089
7,390,318
3,940,801
21,542
118,567
68,857,556 3,074 68,860,630
16,919,485 (1,069,337) 15,850,148
508,702,619 39,668,491 548,371,110
$ 525,622,104 $ 38,599,154 $564,221,258
See Notes to Financial Statements 15
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2009
Capital
Special Revenue Fund
Projects Funds
Low/Moderate
Low/Moderate
Income Housing
Income Housing
Capital
.
General
PA No. 1
PA No. 2
Improvement
Assets:
Cash and investments
$ 56,267,267
$ 4,128,834
$ 17,636,140
$ 3,133,461
Receivables:
Accounts
61,958
10,685
42,703
-
Taxes
1,549,215
76,709
101,742
-
Notes and loans
-
3,795,746
9,443,802
-
Accrued interest
156,415
3,760
22,805
-
Prepaid costs
12,424
-
19,197
-
Deposits
9,830
-
4,540
-
Due from other governments
6,015,082
-
-
442,560
Due from other funds
18,890
-
2,143.702
-
Advances to other funds
46,137,692
-
-
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
Total Assets
$ 110,228,773
$ 8,015,734
$ 29,414,631
$ 3,576,021
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 2,614,562
$ 25,838
$ 53,911
$ 856,772
Accrued liabilities
431,280
-
-
-
Due to other governments
11,709
-
-
-
Retentions payable
_
_
_
2,322,197
Deferred revenues
5,606,812
1,728,718
9,443,802
-
Unearned revenues
4,181,505
-
-
182,052
Deposits payable
5,055,524
12,785
29,597
215,000
Due to other funds
_
_
_
-
Advances from other funds
_
_
_
_
Total Liabilities
17,901,392
1,767,341
9,527,310
3,576,021
Fund Balances:
Reserved:
Reserved for encumbrances -
39,214
-
_ _
Reserved for prepaid costs
12,424
-
19,197 -
Reservedfornotes and loans
-
2,067,028
- -
Reserved for advances to other funds
46,137,692
-
- -
Reserved for deposits
9,830
-
4,540 -
Reserved for debt service
_
_
_ _
Unreserved:
Unreserved, reported in:
General Fund
46,128,221
_ _
Special revenue funds
-
4,181,365
19,863,584 -
Capital projects funds
-
_
_ _
Debt service funds
_
Total Fund Balances
92,327,381
6,248,393
19,887,321
Total Liabilities and Fund Balances
$ 110,228,773 $
8,015,734
$ 29,414,631 $ 3,576,021
See Notes to Financial Statements 16
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2009 (Continued)
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes and loans
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
Due to other governments
Retentions payable
Deferred revenues
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for prepaid costs
Reserved for notes and loans
Reserved for advances to other funds
Reserved for deposits
Reserved for debt service
Unreserved:
Unreserved, reported in:
General Fund
Special revenue funds
Capital projects funds
Debt service funds
Capital Projects Funds
Debt Service Funds
Redevelopment Redevelopment Redevelopment
Civic Center Agency PA No. 1 Agency PA No. 1 Agency PA No. 2
$ - $ 29,816,233 $ 17,755,276 $ 16,191,418
306,837 391,969
34,557 19,587 20,897
3,385,401 - -
11,729,717 - -
$ - $ 44,965,908 $ 18,081,700 $ 16,604,284
C
9,617,167
36,625
599,558 352,066
12,000,000 19,378,966
9,617,167 36,625 12,599,558 19,731,032
3,385,401
11,729,717
(9,617,167) 29,814,165
5,482,142 (3,126,748)
Total Fund Balances (9,617,167) 44,929,283 5,482,142 (3,126,748)
Total Liabilities and Fund Balances $ - $ 44,965,908 $ 18,081,700 $ 16,604,284
See Notes to Financial Statements 17
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2009
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes and loans
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
Due to other governments
Retentions payable
Deferred revenues
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for prepaid costs
Reserved for notes and loans
Reserved for advances to other funds
Reserved for deposits
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
Other - Total
Governmental Governmental
Funds Funds
$ 23,628,283 $ 168,556,912
85,204
200,550
-
2,426,472
-
13,239,548
26,857
284,878
-
31,621
-
14,370
922,607
7,380,249
-
2,162,592
935,718
50,458,811
6,999,121 18,728,838
$ 32,597,790 $ 263,484,841,
$ 26,889
712,330
225,953
2,162,592
5,172,203
$ 3,614,597
431,280
963,333
2,322,197
16,779,332 -
5,075,887
5,538,859
2,162,592
46,168,336
8,299,967 83,056,413
2,000 41,214
- 31,621
- 2,067,028
935,718 50,458,811
- 14,370
6,999,121 18,728,838
-
46,128,221
13,804,876
37,849,825
2,548,152
- 22,745,150
7,956
2,363,350
24,297,823
180,428,428
$ 32,597,790
$ 263,484,841
See Notes to Financial Statements 18,
CITY OF LA QUINTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2009
Fund balances of governmental funds $ 180,428,428
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 govemmental fund activity:
Infrastructure and right-of-way 459.878,794
Other capital assets 158,310,170
Accumulated depreciation (75,271,832)
Long-term debt and compensated absences that have not been included in the
governmental fund activity:
Bonds payable (228,910,000)
Unamortized bond premium/discount 804,944
Unamortized cost of issuance 4,241,470
Other long-term liabilities (7,253,984)
Compensated absences (911,539)
Accrued interest payable for the current portion of interest due on long-term debt
has not been reported in the 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 assets and liabilities of the internal service funds must be added to the
Statement of Net Assets.
The net post -employment benefit liability is recorded in the government -wide
financial statements but not in the fund financial statements.
Net assets of governmental activities
(4,071,598)
16,779,332
21,705,863
(107,944)
$ 525,622,104
See Notes to Financial Statements 19
CITY OF LA OUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2009
Capital
-.
Special Revenue Funds
Projects Funds
- -
-
Low/Moderate
Low/Moderate
Income Housing
Income Housing
Capital
General
PA No. 1
PA No. 2
Improvement
Revenues:
Taxes
$ 20,687,205
$ 10,129,845
$ 5,695,928
$ -
Assessments
-
-
-
-
Licenses and permits
871,167
-
-
-
Intergovernmental
8,907,566
-
327,205
2,491,732
Charges for services
663.738
-
-
Use of money and property
4,196,101
227,847
406,256
-
Fines and forfeitures
434,635
-
-
- -
Contributions
-
-
-
Developer participation
-
-
16,136
900,834
Miscellaneous
121,691
91,632
- 48,360
-
Total Revenues
35,882,103
10,449,324
6,493,885
3,392,566
Expenditures:
-
Current:
-
General government
6,266,263Public
safety
18,905,111
-
-
-.
Planning and development
1,367,350
1,380,108
1,072,134
-
Community services
2,989,567
-
-
Public works
4,667,193
-
-
Capital outlay
434,241
6,188,260
-
25,665,723
Debt service: -
Principal retirement
32,925
-
24,715
205,972
Interest and fiscal charges
-
-
131,279
42,482
Pass -through agreement payments
-
-
-
-
Total Expenditures
34,662,650
7,568,368
1,228,128
25,914,177
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,219,453 -
2,880,956
5,265,757
(22,521,611)
Other Financing Sources (Uses):
Transfers in
353,550
-
307,656
22,521,611
Transfers out
(1,697,641)
(4,752,176)
(2,199,766)
-
Other debts issued
-
2,332,752
-
Total Other Financing Sources
.
(Uses)
(1,344,091)
(2,419,424)
(1,892,110)
22,521,611
Net Change in Fund Balances
(124,638)
461,532
3,373,647
-
Fund Balances, Beginning of Year
92,452,019
5,786,861
16,513,674
Fund Balances, End of Year
$ 92,327,381 $
6,248,393
$ 19,887,321 E -
See Notes to Financial Statements 20
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009 (Continued)
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Developer participation
Miscellaneous
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
Other debts issued
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
Redevelopment Redevelopment Redevelopment
Civic Center Agency PA No. 1 Agency PA No. 1 Agency PA No. 2
$ - $ - $ 40,519,380 $ 22,783,714
684,429 220,854 269,131
145,087 - - -
145,087 684,429 40,740,234 23,052,845
205,776
1,007,276
484,171 261,348
-
-
3,745,968
315,000
163,478
-
8,350,190
1,961,712
-
-
23,240,384
19,186,286
369,254
1,007,276
35,820,713
21,724,346
(224,167)
(322,847)
4,919,521
1,328,499
-
5,000,000
4,444,520
1,953,599
-
(2,872,058)
(8,966,396)
(1,953,599)
-
2,127,942
(4,521,876)
-
(224,167)
1,805,095
397,645
1,328,499
(9,393,000)
43,124,188
5,084.497
(4,455,247)
$ (9,617,167) $
44,929,283 $
5,482,142
$ (3,126,748)
See Notes to Financial Statements 21
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2009
Other
Total
Governmental
Governmental
Funds
Funds
Revenues:
Taxes
$ -
$ 99,816,072
Assessments
927,816
927,816
Licenses and permits
-
871.167
Intergovernmental
6,952,851
18,679,354
Charges for services
- 10,041
673,779
Use of money and property
1,279,619
7,284,237
Fines and forfeitures
-
434,635
Contributions
-
-
Developer participation
- 1,181,728
2,243,785
Miscellaneous
23,867
285,550
Total Revenues
_ 10,375,922
131,216,395
Expenditures: -
Current:
General government
- 12,878
7,230,436
Public safety
41,755
18,946,866
Planning and development
2,434,967
7.261,835
Community services
1,709,418
4,698,985
Public works
- - 1,656,862
6,324,055
Capital outlay
75,635
32,363,859
Debt service:
Principal retirement
1,995,000
6,319,580
Interest and fiscal charges
_ 4,699,457
15,348,598
Pass -through agreement payments _
-
42,426,670
Total Expenditures
12,625,972
140,920,884
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(2,250,050)
(9,704,489)
Other Financing Sources (Uses):
-
Transfers in
5,921,994
40,502,930
Transfers out -
(18,086,294)
(40,527,930)
Other debts issued
-
2,332,752
Total Other Financing Sources
(Uses)
(12,164,300)
2,307,752
Net Change in Fund Balances
(14,414,350)
(7,396,737)
Fund Balances, Beginning of Year
Fund Balances, End of Year
See Notes to Financial Statements 22
38,712,173
$ 24,297,823
187,825,165
$ 180,428,428
CITY OF LA QUINTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
JUNE 30, 2009
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
The issuance of long-term liabilities provides current financial resources in the
governmental funds, but issuing debt increases the long-term liabilities in the
Statement of Net Assets. Repayment of principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the
Statement of Net Assets.
New debt issued
Repayment of principal
Amortization of issuance costs, premiums and discounts
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
See Notes to Financial Statements 23
(7,396,737)
32,363,859
(9,809,578)
(2,332,752)
6,319,580
(362,403)
79,563
(190,256)
(2,376,032)
624,241
$ 16,919,485
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 92,452,019 $92,452,019 $92,452,019 $ -
Resources (Inflows):
Taxes
23,410,100
23,064,554
20,687,205
(2,377,349)
Licenses and permits
1,264,080
834,080
871,167
37,087
Intergovernmental
9,240,800
14,441,467
8,907,566
(5,533,901)
Charges for services
722,029
541,609
663,738
122,129
Use of money and property
4,258,078
4,168,078
4,196,101
28,023
Fines and forfeitures
270,000
270,000
434,635
164,635
Miscellaneous
98,776
98,776
121,691
22,915
Transfers in -
838,171
- 405,959
353,550
(52,409)
Amounts Available for Appropriation
132,554,053
136,276,542
128,687,672
(7,588,870)
Charges to Appropriation (Outflow):
General government
Legislative
- 1,010,322
1,011,422
905,083
106,339
City Manager
452,143
367,992
408,086
(40,094)
Development Services
2,138,497
2,155,076
1,768,500
386,576
Management Services
1,547,699
1,493,899
1,396,937
96,962
City Clerk
715,586
695,783
608,386
87,397
Fiscal Services
926,626
837,824
849,212
(11,388)
Central Services
402,511
402,511
330,059
72,452
Total general government - _
7,193,384
- 6,964,507
6,266,263
698,244
Public safety
Police
11,948,610
12,017,952
11,522,687
495,265
Building & Safety Admin.
395,318
300,373
356,687
(56,314)
Building
- 989,516
967,320
942,093
25,227
Code Compliance
997,512
'997,975
971,551
26,424
Animal Control
407,510
408,210
380,868
27,342
Civic Center Bidg
585,926
566,416
507,270
59,146
Fire
4,819,375
4,893,085
4,066,235
826,856
Emergency Services
151,274
155,774
157,720
(1,946)
Total public safety
20,295,041
20,307,105
18,905,111
1,401,994
Planning and Development
Administration
1,065,142
1,535,886
761,091
774,795
Current Planning
675,286
753,586
606,259
147,327
Total planning and development
1,740,428
2,289.472
1,367,350
922,122
Community Services
Community Services Admin
1,055,656
1,291,811
971,724
320,087
Senior Center
- 436,902
364,802
403,145
(38,343)
Parks & Recreation
223,579
230,779
208,331
22,448
Park Maintenance
1,421,031
1,421,331
1,406,367
14,964
Total community services
3,137,168
3,308,723
2,989,567
319,156
Public works
Administration -
718,443
685,523
644,425
41,098
Development Services
1,091,168
1,017,350
981,811
35,539
Maintenance/Operations - Street
2,640,789
2,950,373
720,869
2,229,504
Maintenance/Operations- Lighting
1,230,321
1,143,354.
989,341
154,013
Traffic
549,479
680,189
564,329
115,860
Construction Management
821.577
256,072
766,418
(510,346)
Total public works
7,051,777
6,732,861
4,667,193
2,065,668
Capital outlay
420,446
660,128
434,241
225,887
Debt service:
Principal retirement
-
-.
32,925
(32,925)
Transfers out
715,454
5,973,790
1,697,641
4,276,149 -
Total Charges to Appropriations
40,553,698
46,236,586
36,360,291
9,876,295
Budgetary Fund Balance, June 30
$ 92,000,355
$90,039,956
$92,327,381
$ 2,287,425
See Notes to Financial Statements 24
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 5,786,861
$ 5,786,861
$ 5,786,861
$ -
Resources (Inflows):
Taxes
11,501,200
11,169,000
10,129,845
(1,039,155)
Use of money and property
53,000
25,000
(12,744)
(37,744)
Contributions
225,000
225,000
240,591
15,591
Miscellaneous
-
100,650
91,632
(9,018)
Other debts issued
-
2,453,458
2,332,752
(120,706)
Proceeds from sale of capital assets
150,000
150,000
-
(150,000)
Amounts Available for Appropriation
17,716,061
19,909,969
18,568,937
(1,341,032)
Charges to Appropriation (Outflow):
Planning and development
1,691,131
1,770,240
1,380,108
390,132
Capital outlay
-
6,517,255
6,188,260
328,995
Transfers out
4,444,479
4,752,135
4,752,176
(41)
Total Charges to Appropriations
6,135,610
13,039,630
12,320,544
719,086
Budgetary Fund Balance, June 30
$ 11,580,451
$ 6,870,339
$ 6,248,393
$ (621,946)
See Notes to Financial Statements 25
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO.2
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$16,513,674 $ 16,513,674
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 16,513,674 $ -
5,872,700
5,843,250
5,695,928
(147,322)
-
335,392
327,205
(8,187)
380,500
431,780
406,256
(25,524)
-
-
16,136
16,136
-
47,817
48,360
543
-
307,656
307,656
-
22,766,874
23,479,569
23,315,215
(164,354)
878,844
1,419,180
1,072,134
347,046
-
22,294
24,715
(2,421)
-
137,544
131,279
6,265
1,983,598
4,780,742
2,199,766
2,580,976
2,862,442
6,359,760
3,427,894
2,931,866
$19,904,432 $ 17,119,809 $ 19,887,321 $ 2,767,512
See Notes to Financial Statements 26
CITY OF LA QUINTA,
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2009
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Deposits
Inventories
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
Unearned revenues
Deposits payable
Capital leases payable
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 -
Internal
Golf Course Service Funds
$ 237,757 $ 5,607,458
15,356 -
231 6,307
1,865 -
250,000
63,334
568,543 5,613,765
42,821,825 16,111,863
42,821,825 16,111,863
$ 43,390,368 $ 21.725,628
$ 161,908 $ 9,197
2,093 3,007
2,521 -
49,000
230,674 -
446,196 12,204
4,290,475 -
- 7,561
54,543
4,345,018 7,561
4,791,214 19,765
42,536,608
(3,937,454)
38,599,154
$ 43,390,368
16,111,863
5,594,000
21,705,863
$ 21,725,628
See Notes to Financial Statements 27
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2009
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)
Nonoperating Revenues (Expenses):
Interest revenue
Interest expense
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues(Expenses)
Income (Loss) Before Contributions and Transfers
Capital contributions
Transfers in
Changes in Net Assets
Net Assets:
Beginning of Year
Change in Net Assets
End of Fiscal Year
See Notes to Financial Statements 28
Business -Type
Activities -
Enterprise
Funds Governmental
Activities -
Internal
Golf Course Service Funds
$ 3,368,135 $ 1,624,476
3,368,135 1,624,476
77,080
113,131
-
79,531
-
101,560
3,571,252
135,274
-
106,209
637,237
799,628
65,784
22,428
4,351,353 1,357,761
(983,218) 266,715
3,074 103,007
(89,193) -
21.542
(86,119) 124,549
(1,069,337) 391,264
207,977
25,000
(1,069,337) 624,241
39,668,491 21,081,622
(1,069,337) 624,241
$ 38,599,154 $ 21,705,863
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2009
Cash Flows from Operating Activities:
Cash received from customers and users
Cash received from/(paid to) interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
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
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
Governmental
Activities -
Internal
Golf Course Service Funds
$ 3.366,124 $ -
(11,058) 1,624,476
(3,603,076) (461,072)
(76,744) (108,822)
(324,754) 1,054,582
25,000
875,202
875,202 25,000
(395,830)
(89,193)
(136,450)
21,542
(485,023) (114,908)
3,331 115,187
3,331 115,187
68,756 1,079,861
169,001 4,527,597
$ 237,757 $ 5,607,458
See Notes to Financial Statements 29
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2009
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 inventories
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
See Notes to Financial Statements 30
Business -Type
Activities -
Enterprise
Funds
Governmental
Activities -
Internal
Golf Course Service Funds
$ (983,218.00) $ 266,715.00
637,237 799,628
(3,266) -
707
10,195 (16,070)
336 676
12,000
1,255
- 3,633
658,464 787,867
$ (324,754) $ 1,054,582
207,977
CITY OF LA QUINTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30.2009
Assets:
Cash and investments
Receivables:
Taxes
Accrued interest
Total Assets
Liabilities:
Deposits payable
Total Liabilities
Agency
Funds
566,970
11,296
655
$ 578,921
$ 578,921
$ 578,921
See Notes to Financial Statements 31
THIS PAGE INTENTIONALLY LEFT BLANK
32
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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 adopted the Redevelopment Plans for
the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These
plans provide for the elimination of blight and deterioration, which was found to exist
in the project areas. Although the Agency 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.
33
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Authority) was established pursuant to a
Joint Exercise of Powers Agreement dated November 19, 1991, between the City of
La Quinta and the La Quinta Redevelopment Agency. The purpose of the Authority
is to provide financing necessary for the construction of various public improvements
through the issuance of debt. Although the Authority is legally separate, it is reported
as if it were part of the City because the City Council also serves as the governing
board of the Authority. Separate financial statements of the Authority are not
prepared.
b. Government -Wide and Fund Financial Statements
The basic financial statements of the City are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that
were issued on or before November 30, 1989, that does not conflict with or contradict
GASB pronouncements.
Government -wide Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of
a given function or segment are offset by program revenues. Direct expenses are
those that are dearly identifiable with a specific function or segment. Program
revenues include charges for services, special assessments, and payments made by
parties outside of the reporting government's citizenry if that money is restricted to a
particular program. Program revenues are netted with program expenses in the
statement of activities to present the net cost of each program. Taxes and other items
not properly included among program revenues are reported instead as general
revenues.
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements, rather than reported as expenditure.
Proceeds of long-term debt are recorded as a liability in the government -wide
financial statements, rather than as other financing source. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability, rather than as expenditure.
34
City of La 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 accrued for the reporting period. The City uses
a 60 day availability period, with the exception of gas tax which is 120 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.
35
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources". Governmental fund operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses)
in net current assets. Accordingly, they are said to present a summary of sources
and uses of "available spendable resources" during a period.
Non -current portions of long-term receivables due to governmental funds are
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources", since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from unrestricted
resources.
Proprietary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund
financial statements, proprietary funds are presented using the accrual basis of
accounting. Revenues are recognized when they are earned and expenses are
recognized when the related goods or services are delivered. In the fund financial
statements, proprietary funds are presented using the economic resources
measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with their activity are included on their balance sheets.
Proprietary fund type operating statements present increases (revenues) and
decreases (expenses) in total net assets.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary
fund financial statements, rather than reported as expenditures. Proceeds of
long-term debt are recorded as a liability in the proprietary fund financial statements,
rather than as another financing source. Amounts paid to reduce long -tens
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.
RR
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 Citys 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 1 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.
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 fund is used to account for the
planning, design and construction of various capital projects throughout the City of
La Quinta and the La Quinta Redevelopment Agency.
Civic Center Fund — To account for the accumulation of resources provided through
developer fees for the acquisition, construction, or improvement of the Civic Center.
Redevelopment Agency Pro iect Area No. 1 — Capital Proiect Fund — To account for
the bond proceeds, interest and other funding that will be used for development,
planning, construction and land acquisition.
Redevelopment Agency Proiect Area No. 1 - 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 and interest and trustee fees for Project Area No. 1.
37
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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.
38
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.
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.
39
City of La Quinta
Notes to Financial Statements (Continued)
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds. The City manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department or funds that 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, 2009, the following funds had deficit fund balances:
Major Capital Projects Funds:
Civic Center $ (9,617,167)
Major Debt Service Funds:
Redevelopment Agency PA No.2 (3,126,748)
Nonmajor Special Revenue Funds:
Library (131,086)
Nonmajor Capital Projects Funds
Library (131,086)
Parks and Recreation (1,444,776)
Library Development (1,940,626)
Fire Facility (935,718)
all
City of La Quinta
Notes to Financial Statements (Continued)
Note 2: Stewardship, Compliance and Accountability (Continued)
c. Excess of expenditures over appropriations are as follows:
Expenditures for the year ended June 30, 2009, exceeded the appropriations of the
General Fund and major special revenue funds as follows:
General Fund:
General Government
City Manager
Fiscal services
Public Safety
Building & safety admin
Emergency services
Community Services
Senior center
Public Works
Construction management
Budget Actual Variance
$ 367,992 $ 408,086 $ (40,094)
837,824 849,212 (11,388)
300,373
356,687
(56,314)
155,774
157,720
(1,946)
364,802
403,145
(38,343)
256,072
766,418
(510,346)
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Cash and investments as of June 30, 2009, 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, 2009, consist of the following:
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
41
$ 174,402,127
18,728,838
566,970
$ 193,697.935
$ 1,565
986,916
192,709,454
$ 193,697,935
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.
Authorized Investment
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptance
Commercial Paper
Money Market Mutual Funds
Negotiable Certificates of Deposit
Disclosures Relating to Interest Rate Risk
Maximum
Maximum Percentage
Maturity Allowed
None
None
None
None
360 days
None
270 days
None
N/A
None
360 days
None
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.
42
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 Type
U.S. Treasury bills
Certificates of Deposit
Commercial paper
Medium tens notes
State investment pool
Held by bond trustee:
Money market funds
U.S. Treasury bills
Total
Total
$ 99,898,396
969,000
4,998,734
12,119,302
55,995,184
Remaining Maturity (in Months)
6 Months 6 Months to 1
or Less Year 1 to 3 Years
$ 99,898,396 $ - $
4,998,734
1,997,131
55,995,184
754,621 754,621
17,974,217 17,974,217
969,000
10,122,171
$ 192,709,454 $ 181,618,283 $ - $ 11,091,171
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The City's investment policy limits investments in
commercial paper 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, 2009, 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 and insured
under the Temporary Loan Guarantee Program (TLGP). The City's investments in medium
term notes were all rated AA or better by S&P with all but one investment in this category
insured under the TLGP. The City's investments in money market mutual funds were all
rated "AAA" by S&P and Moody's. As of June 30, 2009, 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, 2009, the City had
no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total investments.
43
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty,
(e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments,
other than the following provision for deposits: The California Government Code requires
that a financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state
law (unless so waived by the governmental unit). The market value of the pledged securities
in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure City deposits by pledging
first trust deed mortgage notes having a value of 150% of the secured public deposits.
Investment in State Investment Pool
The Entity is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the .
State of California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro-rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost of.
that portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis.
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards (e.g. mark to market) 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 ninety 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
m
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 5: Notes Receivable
In September 1994, the Redevelopment Agency sold certain real property to
LINC Housing for $2,112,847. The property was used to construct single-family
homes and rental units to increase the City's supply of low and moderate income
housing. The note bears interest at 6% per annum and is due in full on June 15,
2029.
In December 2000, the Redevelopment Agency entered into an agreement with
LINC Housing to receive $9,500,000 as a reimbursement for Agency costs
incurred for the construction of infrastructure related to the development of
senior apartments. Payments are due to the Agency 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, 2009
Outstanding
Balance at
June 30, 2009
$ 3,764,107
9,443,802
31,639
$ 13,239,548
45
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, 2009, is as
follows:
Beginning
- Ending
Balance at
- - Balance at
July 1, 2008
Additions
Deletions Transfers June 30, 2009
Governmental Activities:
_
Capital assets, not being depreciated:
Land
$ 80,645.874
$ 3,862,159
$ 8,845,000 $ - $ 75,663,033
Right of way
282,676,426
843,634
- - 283,520,060
Construd'an4n-progress_
39,699,207
25,914,176
1,474,607 (21,736,459) 42,402,317
Total Capital Assets,
Not Being Depredated
403,021,507
30,619,969
10,319,607
(21,736,459)
401,585,410
Capital assets, being depredated:
Buildings and improvements
55,127,713
2,934,270
-
-
58,061,983
Equipment and furniture
1,983,605
221,896
101,506
64,645
2,168,640
Vehicles
1,584,718
198,515
204,834
-
1,578,399
Infrastructure
151,821,209
5,826,173
2,960,462
21,671,814
176,358,734
Total Capital Assets,
Being Depredated
210,517,245
9,180,854
3,266,802
21,736,459
238,167,756
Less aocumulated depreciation:
Buildings and improvements
10,772,215
1.895,240
-
-
12,667,455
Equipment and furniture
1,070,075
197,538
101,506
-
1,166,107
Vehicles
928,784
201,950
204,832
-
925,902
Infrastructure
63,837,762
4,479,392
2,352,447
_
65,964,707
Total Accumulated
Depreciation 76,608,836 6.774.120 2,658,785 80,724,171
Total Capital Assets,
Being Depredated, Net 133,908,409. 2,406,734 608,017 21,736,459 157,443,585
Governmental Activities
Capital Assets, Net $ 536,929,916 $ 33,026,703 $ 10,927,624 $ $ 559,028,995
Depreciation expense was charged to the following functions in the Statement of Activities:
General government $ 124,925
Public safety 1,048,913
Planning and development 65,571
Community services 921,155
Public works 4,613,556
Total governmental activities $ 6,774,120
46'
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, 2009, is as
follows:
Beginning Ending
Balance at Balance at
July 1 2008 Additions Deletions Transfers June 30, 2009
Business -Type Activities:
Capital assets, not being depredated:
Land $ 36840,832 $ $ - $ - $ 36840.832.
Total Capital Assets,
Not Being Depredated
Capital assets, being depredated:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Capital Assets,
Being Depreciated
Less accumulated depredation:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Accumulated
Depredation
Total Capital Assets,
Being Depreciated, Net
Govemmental Activities
Capital Assets, Net
36840,832 - - - 36840.832
6,636,465 -
- - 6,636,465
1,779,148 -
- - 1,779,148
20,348 -
- - 20,348
20,255
- - 20255
8,456,216
- -
- 8,456,216
803,532
234,556 -
- 1,038,088
1,006,033
394,561 -
- 1,400,594
14,243
4,069 -
- 18,312
14,178
4,051
- 18,229
1,837,986 637,237 - - 2,475,223
6,618,230 (637,237) - - 5,980.993
$ 43459062 $ (637,237) $ - $ - $ 42821825
Depreciation expense was charged to the following function in the Statement of Activities:
Golf Course
$ 637,237
47
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities - Governmental Activities
a. Changes in Long -Term Debt
The following is a summary of changes in governmental long-term liabilities of the City for
the fiscal year ended June 30, 2009:
Beginning
Balance at
July 1, 2008 Additions
City:
_
Compensated absences payable
$ 833,155 $ 1,048,039 $
Due to the Coachella Valley
Association of Governments
228,311 -
Developer Agreement Payable
499,786 -
Copier Lease Payable
182,094 -
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
Provident Loan
US Department of Agriculture
Financing Authority:
Revenue bonds
Total
136,350,000
3,660,621
5,915,000
1,600,000
1,572,031
760,721
Balance at June Due within one
Deletions 30, 2009 year
962,094 $ 919,100 $ 919,100
50,000 178,311
155,972 343,814
32,925 149,169
2,960, 000 133,390,000
785,968 2,874,653
115,000
5,800,000
200,000
1,400,000
15,748
1,556,283
8,967
751,754
50,000
169,230
34,586
3,135,000
801,688
120,000
200,000
25,325
10,583
91,715,000 - 1,995,000 89,720,000 2,070,000
$ 240,983,967 $ 3,3 00,791 $ 7,281,674 237,083,084 $ 7,535,512
Less: Unamortized premiums/discounts (804,944)
Net Long -Term Debt $ 236,278,140
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, 2009, 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, 2009, the balance
payable was $178,311.
48
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, 2009, are as follows:
Principal
2009 - 2010
$ 50,000
2010 - 2011
50,000
2011 - 2012
50,000
2012 - 2013
28.311
Totals
$ 178,311
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, 2009, the
City paid the developer $122,250 in sales tax reimbursement and $76,204 since the
sales tax generated exceeded the required amount. The balance at June 30, 2009, is
$343,814.
The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2009, are as follows:
Principal Interest
2009-2010 $ 169,230 $ 29,224
2010 - 2011 174,584 23,870
Totals $ 343,814 $ 53,094
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.
49
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, 2009 are as follows:
Year Ending
June 30,
Total
2010
$ 44,358
2011
44,358
2012
44,358
2013
44,358
Total Payments
177,432
Less Amount Representing Interest
(28,263)
Outstanding Principal
$ 149,169
Tax Allocation Bonds
As of June 30, 2009, the following issuances of Tax Allocation Bonds were outstanding:
Series 1994 Project 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, 2009, is $8,920,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
Principal
Interest
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
$ 8,920,000 $ 1,359,626
50
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, 2009, is $15,760,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
Principal
Interest
2009 - 2010
$ -
$ 819,520
2010 - 2011
-
819,520
2011 - 2012
-
819,520
2012 - 2013
-
819,520
2013 - 2014
655,000
802,490
2014 - 2019
3,825,000
3,450,070
2019-2024
4,935,000
2,317,250
2024 - 2029
6,345,000
857,870
Totals
$ 15,760,000
$ 10,705,760
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.
51
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, 2009, is $5,800,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
Principal
Interest
2009-2010
$ 120,000
$ 299,550
2010 - 2011
125,000
293,272
2011 - 2012
130,000
286,738
2012 - 2013
140,000
279,819
2013-2014
145,000
272,516
2014 - 2019
840,000
1,240,731
2019-2024
1,085,000
992,381
2024 - 2029
1,405,000
666,881
2029 - 2034
1,810,000
247,275
Totals $ 5,800,000 $ 4,579,163
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, 2009,
is $48,000,000 with an unamortized discount of $384,497.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
Principal
Interest
2009 - 2010
$
$ 2,430,720
2010-2011
- -
2,430,720
2011 - 2012
-
2,430,720
2012 - 2013
2,430,720
2013-2014
1,565,000
2,391,595
2014-2019
9,095,000
10,669,725
2019-2024
11,605,000
8,089,803
2024.2029
14,865,000
4,742,618
2029-2034
'10,870,000
849,915
Totals $ 48,000,000 $ 36,466,536
52
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, 2009,
is $36,425,000 with an unamortized discount of $338,958.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
Principal
Interest
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 - 2014
705,000
1,695,656
2014-2019
4,065,000
7,902,281
2019-2024
5,190,000
6,749,694
2024-2029
6,660,000
5,250,306
2029 - 2034
17,025,000
2,094,459
Totals
$ 36,425,000
$ 30,767,288
Series 2003 Project Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quinta Redevelopment
Project Area No. 1. The 2003 tax allocation bonds were issued at a discount of
$277,200 and issuance costs of $629,191.
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, 2009, is $24,285,000 with an
unamortized discount of $222,076.
53
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, 2009, are as follows:
- Principal
Interest
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
2013-2014
590,000
1,392,158
2014 - 2019
3,515,000
6,358,580
2019-2024
4,770,000
5,076,104
2024-2029
6,485,000
3,303,559
2029-2034
_ 6,855,000
917,861
Totals $ 24,285,000 $ 22,914,462
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, 2009, totaled
$2,874,653. 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, 2009, are as follows:
Principal
2009-2010
$ 801,688
2010 - 2011
817,722
2011 -2012
834,076
2012-2013
421,167
Totals
$ 2,874,653
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, 2009, is
$1,400,000.
54
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, 2009, are as follows:
Principal
2009 - 2010
$ 200,000
2010 - 2011
200,000
2011 - 2012
250,000
2012 - 2013
750,000
Totals
$ 1,400,000
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, 2009, is $5,160,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
Principal
Interest
2009-2010
$ 400,000
$ 275,280
2010-2011
420,000
252,525
2011 - 2012
445,000
228,521
2012 - 2013
470,000
203,130
2013-2014
495,000
176,351
2014 - 2019
2,930,000
423,743
Totals $ 5,160,000 $ 1,559,550
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.
55
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, 2009, is $84,560,000 with an unamortized premium of
$140,587.
The minimum annual requirements to amortize the bond payable as of
June 30, 2009, are as follows:
2009 - 2010
2010 - 2011
2011 - 2012
2012 - 2013
2013 - 2014
2014 - 2019
2019 - 2024
2024 - 2029
2029 - 2034
2034 - 2039
Totals
Washington Street Apartments
Principal
$ 1,670,000
1,740,000
1,805,000
1,890,000
1,975,000
11,485,000
14,830,000
19,090,000
Interest
$ 4,243,331
4,175,131
4,099,719
4,016,581
3,924,681
17,953,106
14,520,756
10.163,219
24,415,000 4,700,072
5,660,000 145,039
$ 84,560,000 $ 67,941,635
In October 2008, the La Quinta Redevelopment Agency acquired the Washington
Street Apartments for cash and the assumption of the following debt:
Provident Bank Loan
This loan was originally entered into with the previous owner of the Washington
Street Apartments and Provident Bank for $1,696,000 in August 2001 at an
8.36% interest rate. The loan is amortized on a thirty year basis with the
outstanding balance due in twenty years or August 2021. The outstanding
principal balance in October 2008 when the property was acquired by the Agency
was $1,572,031. The loan is secured by a deed of trust on the property and is
senior to the United States Department of Agriculture (USDA) loan which is also
secured by a deed of trust on the property. Repayment of the monthly loan
amount of $12,873 is made from tenant rent receipts. The source for the final
principal payment due in August 2021 of $1,050,109 will be determined at a
future date. The principal balance of this loan at June 30, 2009, is $1,556,283.
3u
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 loan payable as of
June 30, 2009, are as follows:
Principal
Interest
2009-2010
$ 25,325
$ 129,149
2010 - 2011
27,525
126,949
2011 - 2012
29,917
124,558
2012-2013
32,516
121,959
2013-2014
35,341
119,134
2014 - 2019
228,453
543,919
2019-2022
1,177,206
202,041
Totals $ 1,556,283 $ 1,367,709
United States Department of Agriculture (USDA) Rural Development Promissory
Note
This promissory note was originally entered into with the previous owner of the
Washington Street Apartments and USDA - Rural Development for $1,500,000
in November 1980 at a 10.00% interest rate. The note is amortized on a fifty
year basis with the outstanding balance due in October 2030. The outstanding
principal balance, in October 2008, when the property was acquired by the
Agency was $760,721. The loan is secured by a deed of trust on the property
and is subordinated to the Provident loan which is also secured by a deed of trust
on the property. Repayment of the monthly loan amount of $7,107 is made from
tenant rent receipts and a rental subsidy from the USDA. Rural Development
has agreed to a 9% interest rate subsidy on the Promissory Note as long as the
Apartment renters meet certain program eligibility requirements. The principal
balance of this note at June 30, 2009, is $751,754.
Principal
Interest
2009-2010
$ 10,583
$ 74,699
2010 - 2011
11,691
73,591
2011-2012
12,915
72,367
2012-2013
14,267
71,014
2013 - 2014
15,761
69,520
2014 - 2019
107,303
319,106
2019-2024
176,546
249,863
2024 - 2029
290,473
135,936
2029 - 2031
112,215
8,602
Totals $ 751,754 $ 1,074,698
57
City of La Quinta
Notes to Financial Statements (Continued)
Note 8: Changes in Long -Term Liabilities — Business -type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2009, were as
follows:
Balance at Balance at Due within
July 1, 2008 Additions Deletions July 1, 2009 one year
Golf Course:
Capital leases payable $ 681,047 $ - $ 395,830 $ 285,217 $ 230,674
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.
Obligations under capital leases are as follows:
National aty 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. $ 143,382
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. 33,670
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. 55,746
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. 8,290
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. 2,559
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.
7,985
TFG-Califomia, 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. 33,585
Total capital leases payable as of June 30, 2009 $ 285,217
58
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:
Year Ending
June 30, Total
2010 $ 239,666
2011 55,731
Total Payments 295,397
Less Amount Representing Interest (10,180)
Outstanding Principal $ 285,217
Note 9: Pledge Tax Revenues
As previously discussed, the City has pledged, as security for bonds it has issued, either
directly or through the Financing Authority, a portion of the tax increment revenue (including
Low and Moderate Income Housing set -aside) that it receives. These bonds were to provide
financing for various capital projects and accomplish Low and Moderate Income Housing
projects. The City has committed to appropriate each year, from these resources amounts
sufficient to cover the principal and interest requirements on the debt. Total principal and
interest remaining on the debt is $398,484,469 with annual debt service requirements as
indicated above. For the current year, the total tax increment revenue, net of pass through
payments, recognized by the City was $36,781,483 and the debt service obligation on the
bonds was $16,630,367.
Note 10: 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 liabilities 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, 2009:
Amount
Outstanding at
Proceeds Maturity Date Interest Rate June 30, 2009
Assessment District No. 97-1 $ 705,262 9/2/2018 4.10% - 5.20% $ 410,000
Assessment District No. 2001-1 2,285,000 9/2/2015 5.00% - 6.60% 940,000
Note 11: 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, 2009, are $2,830,000.
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. 59
City of La Quinta
Notes to Financial Statements (Continued)
Note 12: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2009, are as
follows:
Due to Other
Funds
Non -Major
Governmental TOTAL
Due From Other Funds
General Fund $ 18,890 $ 18,890
RDA PA #2 Debt Service 2,143,702 2,143,702
Total: $ 2,162,592 $ 2,162,592
The due to the General Fund and RDA PA#2 Debt Service Fund were the results of routine
interfund transactions not cleared prior to year-end.
The composition of non -current interfund receivable and payable as of June 30, 2009, 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 $ 9,617,167
$ 12,000,000 $ 19,378,966 $ 4,290,475
$ 851,084
$ 46,137,692
Redevelopment Agency
PA No.1 Capital Projects -
- -
3,385,401
3,385,401
Non -Major Governmental -
- -
_T
935,718
935,718
Total: $ 9,617,167
12,000,000 $ 19,378,966 $ 4,290,475
$ 5,172,203
$ 50,458,811
a) As of June 30, 2009, 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, 2009, 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 2035/36 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, 2009, the General Fund has advanced to the Golf Course fund
$4,290,475. 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 from the RDA PA No. 1 Capital
Projects Fund 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, 2009, the remaining
balance of the advance for the La Quinta Community Park is $1,444,775.
m
City of La Quinta
Notes to Financial Statements (Continued)
Note 12: Interfund Receivables and Payables (Continued)
e) In April 2005, another advance of $2,490,273 was made from the RDA PA No. 1 Capital
Projects Fund 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, 2009, is $1,940,626.
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, 2009,
the remaining balance of the advances is $935,718.
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, 2009, the Civic Center expansion was completed and the amount of the
advance was $9,617,167 outstanding. The advance accrues interest that would have
been eamed by the Local Agency Investment Fund.
h) In February 2007, an advance up to $1,400,000 for the Museum expansion and Phase II
Library improvements from the General Fund to the Library Fund was approved. As of
June 30, 2009 the amount of the outstanding advance was $851,084. The advance
accrues interest that would have been earned by the Local Agency Investment Fund and
will be repaid from future tax increment funds designated for the Library and Museum
which are anticipated to be received in the next year.
Note 13: Interfund Transfers
TRANSFERSIN
General Fund
LowlModerate Income
Housing PA #2
Capital Improvement
RDA PA #1 Capital Projects
RDA PA #1 Debt Service
RDA PA #2 Debt Service
Non -Major Governmental
Internal Service Fund
TRANSFERS OUT
Low/
Low/
Moderate
Moderate
Income
Income
RDA PA #1
General Housing
Housing
Capital RDA PA #1 RDA PA #2 Non -Major
Fund PA#1
PA 42
Projects Debt Service Debt Service Governmental TOTAL
307,656
1,695,642 - 246,167
4,444,520 -
1,953,599
1,999 -
353.550 $ 353,550
- 307,656
2,872,058 - - 17,707,744 22,521,611
- 5,000,000 - - 5,000,000
- - - 4,444,520
- - - 1,953,599
3,966,396 1,953,599 - 5,921,994
25,000 25,000
Total: $ 1,697,641 $ 4,752,176 $ 2,199,766 $ 2,872,058 $ 8,966,396 $ 1,953.599 $ 18,086,294 $ 40,527,930
The following describes the major transfers in and transfers out included in the financial
statements:
a) $4,444,520 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) $246,168 was transferred from the Low/Moderate Housing Project Area No. 2 Fund
to the Capital Improvement Fund to pay for various capital projects. $1,953,599 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.
61
City of La Quinta
Notes to Financial Statements (Continued)
Note 13: Interfund Transfers (Continued)
c) $3,966,396 and $1,953,599 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.
$5,000,000 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) $2,872,058 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) $11,658,462 was transferred to the Capital Improvement Fund from the RDA 2004
Low/Mod Bond Fund for various capital projects funded by bond proceeds.
f) $4,444,520 was transferred from the Low/Moderate Housing Project Area No. 1
Fund to the RDA Project Area No. 1 Debt Service Funds to pay for a portion of the
2004 and 1994 bond issues principal and interest. $307,656 was transferred from the
Low/Moderate Housing Project Area No. 1 Fund to the Low/Moderate Housing
Project Area No. 2 Fund for the Washington Street Apartments Project.
9) $1,695,642 was transferred from the General Fund to the Capital Improvement Fund
to fund various capital projects and sales rebate agreements. The largest Capital
Projects were for the Village Cove Fire Station Phase 1 and for the Ave 58 and
Jefferson St street improvement project. The sales tax rebate agreements were with
Costco, Kohl's and the AutoMall developer.
h) $1,999 was transferred to the La Quinta Public Safety Officer Fund from the General
Fund for public safety officers disabled or killed in the line of duty.
IV. OTHER INFORMATION
Note 14: 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 12.571 % of annual
covered payroll. The contribution requirements of plan members and the City are established
and may be amended by PERS.
62
City of La Quinta
Notes to Financial Statements (Continued)
Note 14: Defined Benefit Pension Plan (Continued)
Annual Pension Cost
For 2009, the City's annual pension cost of $973,515 for PERS was equal to the City's
required and actual contributions.
Three -Year Trend Information for PERS
Required Percentage
Fiscal Year Contributions Contributed
6/30/2007 $ 763,527 100%
6/30/2008 902,098 100%
6/30/2009 973,515 100%
Note 15: Post -Employment Health Benefits
Plan Description
The City provides other postemployment benefits (OPEB) through the California Employers'
Retiree Benefit Fund (CERBT), an agent multiple -employer defined benefit healthcare plan
administered by the California Public Employees' Retirement System (CalPERS), by
contributing on behalf of all eligible retirees $97.00/month for calendar 2008 and
$101.00/month for calendar 2009, increased in all future years according to the rate of
medical inflation. These benefits are provided per contract between the City and the
employee associations. Separate financial statements for the CERBT may be obtained by
writing to CaIPERS at Lincoln Plaza North 400 0 Street, Sacramento, CA 95814 or by visiting
the CaIPERS website at www.calpers.ca.gov.
Funding Policy
The contribution requirements of plan members and the City are established and may be
amended by the City, City Council and/or the employee associations. Currently, contributions
are not required from plan members. A contribution of $8,877 was made during the
2008-2009 fiscal year to cover current plan premiums.
As a result, the City calculated and recorded a Net OPEB Asset, representing the difference
between the Annual Required Contribution (ARC) and actual contributions, as presented
below:
Annual required contribution (ARC) $ 116,821
Adjustment to ARC -
Annual OPEB cost 116,821
Contributions made (8,877)
(Decrease) increase in Net OPEB obligation 107,944
Net OPEB obligation (asset) - beginning of year
Net OPEB obligation (asset) - end of year $ 107,944
63
City of La Quinta
Notes to Financial Statements (Continued)
Note 15: Post -Employment Health Benefits (Continued)
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan
and the net OPEB obligation for 2008-2009 and the two preceding years were as follows:
Actual
Percentage
Fiscal
Annual
Contribution
of Annual
Net OPEB
Year
OPEB
(Net of
OPEB Cost
Obligation
End
Cost
Adjustments)
Contnbuted
(Asset)
6/30/2007
N/A
N/A
N/A
N/A
6/30/2008
N/A
N/A
N/A
N/A
6/30/2009
$116,821
$8,877
7.60%
$107,944
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
The schedule of funding progress below presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. Only one year is presented as this is the first year of
the plan.
Unfunded
UAAL as a
Actuarial
Actuarial
Actuarial
Actuarial
Percent of
Type of Valuation
Value of
Accrued
Accrued
Funded Covered
Covered Interest
Valuation Date
Assets
Liability
Liability
Ratio Payroll
Payroll Rate
Actual 6/30/2009
$ -
$ 590,676
$590,676
0.0% $7,821,474
7.6% 5.00%
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in the actuarial accrued liabilities and the actuarial value of assets, consistent with
the long-term perspective of the calculations.
In the July 1, 2008, actuarial valuation, the level dollar actuarial cost method was used. The
actuarial assumptions include a 5.0% investment rate of return, which is a blended rate of the
expected long-term investment return on plan assets and on the employers own investments
calculated based on the funded level of the plan at the valuation date, and annual healthcare
cost trend rate of 7%. The actuarial value of assets is set equal to the reported market value
of assets. The UAAL is being amortized as a level dollar on an open basis. The remaining
amortization period at June 30, 2009, was twenty-nine years. The number of active
participants is 4.
64
City of La Quinta
Notes to Financial Statements (Continued)
Note 16: Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Insurance
Authority). The Insurance Authority is composed of 122 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 et
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.
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 allocated to members by
the following methods within each of the four layers of coverage: (1) the first $30,000 of
each occurrence is charged directly to the member's primary deposit; (2) 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; (3) losses
from $750,000 to $2,000,000 and the associated loss development reserves are pooled
based on payroll; (4a) costs of covered claims from $2,000,000 to $50,000,000 are paid
under reinsurance and excess insurance policies (4b) subject to a $3,000,000 annual
aggregate deductible (4c) and a quota -sharing agreement whereby the Authority is
financially responsible for 40% of losses occurring within the $2,000,000 to $10,000,000
layer. The costs associated with 4a-c are estimated using actuarial models and pre -
funded as part of the primary and retrospective deposits.
The overall policy limit for each member including all layers of coverage is $50,000,000
per occurrence. Costs of covered claims for subsidence losses are paid by excess
insurance with the following sub -limits per member: $25,000,000 per occurrence with a
$15,000,000 annual aggregate.
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 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 public safety and non-public safety. Costs are
allocated to members by the following methods within each of the four layers of
coverage: (1) the first $50,000 of each loss is charged directly to the member's primary
deposit; (2) 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; (3) losses from $100,000 to $2,000,000 and the loss development
reserves associated with those losses are pooled based on payroll; (4) losses from
$2,000,000 up to statutory limits are paid under an excess insurance policy. Protection is
provided per statutory liability under California Workers' Compensation law.
Employer's Liability losses are pooled among members to $2,000,000, coverage from
$2,000,000 to $4,000,000 is purchased as part of an excess insurance policy, and losses
from $4,000,000 to $10,000,000 are pooled among members.
65
City of La Quinta
Notes to Financial Statements (Continued)
Note 16: Self insurance (Continued)
Environmental Insurance
City of La Quinta participates in the pollution legal liability and remediation legal liability
insurance which is available through the Authority. The policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by City of La
Quinta. Coverage is on a claims -made basis. There is a $50,000 deductible. The
Authority has a limit of $50,000,000 for the 3-year period from July 1, 2008 through
July 1, 2011. Each member of the Authority has a $10,000,000 sub -limit during the
3-year term of the policy.
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 $20,000,000. 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 $63,550,220.
During the past three fiscal years none of the above programs of protection have had
settlements or judgments that exceed pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
Note 17: Contingencies
Various claims and suits have been filed against the City in the normal course of operations.
Although the outcome of these lawsuits is not presently determinable, in the opinion of
management, the resolution of these matters will not have a material adverse effect on the
financial position of the City.
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
Mites 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" anniversary of the permanent loan closing. As of the June 30, 2009, the permanent
loan closing has not occurred.
66
City of La Quinta
Notes to Financial Statements (Continued)
Note 18: Construction Commitments
The following material construction commitments existed at June 30, 2009:
Expenditures to
Contract
date as of June
Remaining
Project Name
Amount
30, 2009
Commitments
Silver Rock Resort Infrastructure
$ 26,358,941
$ 1,502,001
$ 24,856,940
Adams Street Bridge Improvements
12,408,001
376,453
12,031,548
Community Park Land Acquisition
8,000,000
16,562
7,983,438
Silver Rock Resort Entry Feature & Roads
5,994,224
157,818
5,836,406
Cove Fire Station Phase 1
4,215,841
467,336
3,748,505
Maintenance Yard
2,585,690
109,292
2,476,398
Note 19: Unreserved Fund Balances
Unreserved fund balances at June 30, 2009, consisted of the following:
General Fund
LowlModerale
Income
Housing PA
No. 1
Low/Moderate
Income Mousing
PAN. 2
RDA PA No, 1
Capital
Projects Cmc Center
RDA PA No, 1 RDA PA No. 2
Debt Service Debt service
Other
Govemmental
Funds
TOTAL
Designated for
Emergency reserves
$ 18.201,948
$ -
$ -
$ - $ -
$ - $ -
$ - $
18,201,94B
Cash flaws.
3.347.602
-
-
- -
- -
-
3,W 602
Capital improyemerrts
2, 144.085
-
-
29,814,165 -
- -
-
31958250
Devt Sam.
-
-
-
- -
5,462,142 -
-
5,482,142
Carryover apprapdations
3,446.533
-
-
- -
- -
-
3,446533
Operations/projerAsttmnsters
18,986,053
4.181365
19,663,584
- -
- -
-
43,033002
Undesignated
-
(9,617,167)
- 0,126.748)
111 Worgm
3,617,669
Total unreserved tuM
balances (deficit)
$ 46128,221
$ 4,181,365
$ 19,863,584
S 29,814,165 $ (9,617,167)
$ 5482.142 S (3,126,748)
S 16,360.964 $
109.086546
Note 20: Golf Course Management Agreement
The City entered into an agreement with Landmark Golf Management LLC (operator) to
manage the golf operations at the city -owned SilverRock Golf Course. The Agreement
entered into on April 6, 2004, sets forth a five year term commencing upon the completion of
the golf course. On January 14, 2005, the golf course was deemed to be complete and
management was turned over to the operator. The contract provides that the operator will
manage the day to day operations, hire employees, provide golf pro shop and food services,
manage all marketing and promotional activities, prepare the annual budget report for Council
consideration, and manage accounting and payroll functions. In addition to the annual
payment for management services, the City has advanced the operator $250,000 to pay for
golf course expenses. Twice a month the operator submits a request for reimbursement to
the City to replenish the City's advance. In addition, the agreement sets forth the
establishment of a capital reserve fund of 2% of green fees. For the fiscal year ending
June 30, 2009, the Golf Course had an operating loss before contributions and transfers of
$1,069,337.
67
City of La Quinta
Notes to Financial Statements (Continued)
Note 21: 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, 2009, the City made $153,886 in
reimbursement payments to the owner leaving an outstanding balance of $555,585..
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, 2009, the City made $699.912 in reimbursement payments to the owner leaving an
outstanding balance of $3,330,088.
Note 22: Subsequent Events
SERAF Tax Increment Revenue Shift for Fiscal Year 2009-2010 and 2010-2011
On July 23, 2009, the California Legislature passed SB 26, requiring a shift in tax
increment revenues during fiscal years 2009-2010 and 2010-2011 to be deposited into
the county "Supplemental" Educational Revenue Augmentation Fund (SERAF) and which
is to be distributed to meet the State's Prop 98 obligations to schools. It is estimated that
the Agency's share of the SERAF shift for fiscal year 2009-2010 and 2010-2011 will
amount to approximately $23,560,481 and $4,850,687, respectively. It is anticipated that
in October 2009, when this law becomes effective, the California Redevelopment
Association and/or its members will file legal action in an attempt to stop these amounts
from having to be paid.
Local Government Revenues Withheld by the State of California
On July 24, 2009, the legislation approved the "borrowing" of up to 8 percent of the local
property tax under Proposition 1A (2004). For the City of La Quinta this is estimated to
be $964,794. The State of California is required to repay this obligation by
June 30, 2013.
LEI:
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
services such as anti -gang community crime prevention.
Indian Gaming Fund — To account for contributions for public safety activities to reduce crime and
increase public safety.
Lighting and Landscape Special Assessment District 89-1 Fund — To account for special assessments
levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance
and improvements.
Riverside County Transportation Commission (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.
Development Agreement Fund — To account for the proceeds of development agreement revenues
collected and the related expenditures in accordance with State requirements.
m
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.
Proposition 1 B Fund - To account for the revenues and expenditures related to Proposition 1 B 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.
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 Councilthrough adoption of the annual capital
improvement program budget.
-- ........ -z ._e 1 ullk,oucrr rdaow rung rant 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. Eight 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.
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.
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, 2009
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue Funds
Federal
State Gas Tax Library Assistance SLEBG
$ 367,840 $ _ $ _ $ _
410 - 64
146,428 719,997 - 29,456
$ 514,678 $ 719,997 $ $ 29,520
42
851,083
851,083
514,678 (131,086) - 29,520
514,678 (131,086) 29,520
$ 514,678 $ 719,997 $ - $ 29,520
72
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009 (Continued)
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue Funds
Lighting and
Indian Gaming Landscaping RCTC Quimby
$ 105,075 $ - $ - $ 10,451,278
- 25,382 -
203 - - 11,903
- 18,890 -
$ 105,278 $ 25,382 $ 18,890 $ 10,463,181
105,278
105,278
18,890
18,890
25,382 - 10,463,181
25,382 - 10,463,181
$ 105,278 $ 25,382 $ 18,890 $ 10,463,181
73
C
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue Funds
Art in Public South Coast
Public Safety Places Air Quality AB 939
$ 20,740 $ 925,789 $ 279,251 $ 1,446,869
- - 38,822 -
24 961 318 1,643
$ 20,764 $ 926,750 $ 318,391 $ 1,448,512
$ $ 2,300
2,300
$ $ 2,100
2,100
2,000
20,764 924,450 318,391 1,444,412
20,764 924,450 318,391 1,446,412
$ 20,764 $ 926,750 $ 318,391 $ 1,448,512
74
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30 2009
(Continued)
Capital
Special Revenue Funds
Projects Funds
CV Violent
Development
Crime Task
Proposition
Agreement
Force
1B
Infrastructure
Assets:
Cash and investments
$ 197,893
$ 188,233 $
606,886
$ 407,040
Receivables:
Accounts
-
-
-
"
Accrued interest
225
226
166
463
Due from other governments
-
7,836
-
-
Advances to other funds
-
-
"
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
E 198,118
$ 196,295 $
607,052
$ 407,503
Liabilities and Fund Balances
Liabilities:
Accounts payable $ - $ 1,111 $ - $ -
Unearned revenues - - 607,052 -
Deposits payable 198,118 - -
Due to other funds - - Advances from other funds
Total Liabilities 198,118 1,111 607,052
Fund Balances:
Reserved:
Reserved for encumbrances - - -
Reserved for advances to other funds - - -
Reserved for debt service - - -
Unreserved:
Undesignated - 195,184 - 407,503
Total Fund Balances 195,184 - 407,503
Total Liabilities and Fund Balances $ 198,118 $ 196,295 $ 607,052 $ 407,503
75
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009
Capital Projects Funds
Parks and
Library
Community
Transportation
Recreation
Development
Center
Assets:
Cash and investments
$ 5,900,366
$ -
$ -
$ 1,157,584
Receivables:
Accounts
Accrued interest
7,183
-
-
1,316
Due from other governments
_
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
$ 5,907,549
$
$ -
$ 1,158,900
Liabilities and Fund Balances:
,
Liabilities:
Accounts payable
$ _
$ _
$ _
$ _
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds -
-
1,444,776
1,940,626
Total Liabilities ,
-
1,444,776
1,940,626
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for advances to other funds
Reserved for debt service _
Unreserved:
Undesignated 5,907,549 (1,444,776) (1,940,626) 1,158,900
Total Fund Balances 5,907,549 (1,444,776) (1,940,626) 1,158,900
Total Liabilities and Fund Balances $ 5,907,549 $ - $ - $ 1,158,900
76
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30 2009
(Continued)
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Capital Projects Funds
2004 Low/Mod
Street Facility Park Facility Fire Facility Bond
$ 339,235 $ 101,641 $ - $ -
385 115
- - 6,999,121
$ 339,620 $ 101,756 $ $ 6,999,121
- 2,143,702
935,718 -
935,718 2,143,702
- - 6,999,121
339,620 101,756 (935,718) (2,143,702)
339,620 101,756 (935,718) 4,855,419
$ 339,620 $ 101,756 $ - $ 6,999,121
77
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS -
JUNE 30, 2009
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:.
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
78
Capital Projects
Debt Service
Funds
Funds
Redevelopment
Financing
Total
Governmental
Agency PA No. 2
Authority
Funds
$ 1,122,857
$ 9,706
$ - 23,628,283
21,000
-
85,204
1,252
-
26,857
-
-
922,607
935,718
-
935,718
-
-
6,999,121
$ 2,080,827
$ 9,706
$ 32,597,790
$ 19,628 $ 1,750 $ 26,889
- - 712,330
27,835 - 225,953
- - 2,162,592
5,172,203
47,463 1,750 8,299,967
- 2,000
935,718 - 935,718
- - 6,999,121
1,097,646 7,956 16,360,984
2,033,364 7,956 24,297,823
$ 2,080,827 $ 9,706 $ 32,597,790
THIS PAGE INTENTIONALLY LEFT BLANK
vil
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009
Revenues: -
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Revenue Funds
Federal
State Gas Tax Library Assistance SLEBG
1,050,821 2,636,717
5,272
26,055 100,306
495
1,056,093 2,636,717 26,055 100,801
- 1,662,397
722,724 -
- 21,079
722,724 1,683,476
333,369 953,241 26,055 100,801
(96,553) - (26,055) (93,859)
(96,553) - (26,055) (93,859)
236,816 953,241 - 6,942
277,862 (1,084,327) - 22,578
$ 514,678 $ (131,086) $ $ 29,520
WS 0
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009 (Continued)
Revenues:
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Revenue Funds
Lighting and
Indian Gaming Landscaping RCTC Quimby
$ - $ 927,816 $ - $ -
210,432 - 2,092,206 -
- - - 182,718
53,855
210,432 927,816 2,092,206 236,573
934,138
934,138
32,130
32,130
210,432 (6,322) 2,092,206 204,443
(210,432)
(1,773,815) (81,180)
(210,432) - (1,773,815) (81,180)
(6,322) 318,391 123,263
31,704 (318,391) 10,339,918
$ - $ 25,382 $ - $ 10,463,181
81
CITY OF to OUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES -
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009
Special Revenue Funds
-
Art in Public
South Coast
Public Safety
Places
Air Quality
AB 939
Revenues:
Assessments
$ _
$ _
$ _
$ _
Intergovernmental
-
-
136,201
-
Charges for services
-
_
_
_
Use of money and property
361
18,852
4,651
25,281
Developer participation
-
105,570
-
-
Miscellaneous
-
23,844
-
-
Total Revenues
361
148,266
140,852
25,281
Expenditures:
Current:
General government
Public safety
Planning and development
-
-
27,711
10,613
Community services
_
14,891
_
Public works
_
_
Capital outlay
-
75,635
-
-
Debt service:
Principal retirement
_
_
Interest and fiscal charges
Total Expenditures
-
90,526
27,711
10,613
Excess (Deficiency) of Revenues
Over (Under) Expenditures
361
57,740
113,141
14,668
Other Financing Sources (Uses):
Transfers in
2,000
-
-
-
Transfers out
-
(200,000)
(48,203)
-
Total Other Financing Sources
-
(Uses)
2,000
(200,000)
(48,203)
' Net Change in Fund Balances
2,361
(142,260)
64,938
14,668
Fund Balances, Beginning of Year
18,403
1,066,710
253,453
1,431,744
Fund Balances, End of Year
$ 20,764
$ 924,450
$ 318,391
$ 1,446,412
82
CITY OF LA OUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009
(Continued)
Capital
Special Revenue Funds
Projects Funds
CV Violent
Development Crime Task
Proposition
Agreement Force
I
Infrastructure
Revenues:
Assessments
$ - $ -
$ -
$ -
Intergovernmental
- 75,808
624,305
-
Chargesforservices
- -
-
-
Use of money and property
- 3,269
5,552
7,083
Developer participation
- -
-
-
Miscellaneous
-
-
-
.. Total Revenues
- 79,077
629,857
7,083
Expenditures:
Current:
General government
- -
-
-
Public safety
- 41,755
-
-
Planning and development
- -
-
-
Community services
- -
-
-
Public works
- -
-
-
Capital outlay
- -
-
-
Debt service:
Principal retirement
- -
-
-
Interest and fiscal charges
-
-
-
Total Expenditures
- 41,755
-
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
- 37,322
629,857
7,083
Other Financing Sources (Uses):
Transfers in
- -
-
-
Transfers out
- -
(629,857)
-
Total Other Financing Sources
(Uses)
- -
(629,857)
-
Net Change in Fund Balances
- 37,322
-
7,083
Fund Balances, Beginning of Year
- 157,862
-
400,420
Fund Balances, End of Year
$ $ 195,184
$
$ 407,503
83
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009
Revenues:
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Capital Projects Funds
Parks and Library Community
Transportation Recreation Development Center
$ $ $ $
119.063 - - 20,088
825,304 94,999 42,606 7,884
944,367 94,999 42,606 27,972
26,201 34,226 -
- 26,201 34,226 -
944,367 68,798 8,380 27,972
(2,930,217) - - -
(2,930,217) - - -
(1,985,850) 68,798 8,380 27,972
Fund Balances, Beginning of Year
7,893,399
(1,513,574)
(1,949,006)
1,130,928
Fund Balances, End of Year
$ 5,907,549
$ (1,444,776)
$ (1,940,626)
$ 1,158,900
84
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009 (Continued)
Revenues:
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Capital Projects Funds
2004 Low/Mod
Street Facility Park Facility Fire Facility Bond
5,866 1,752 - 165,610
28,747 2,340 20,423 -
34,613 4,092 20,423 165,610
2,096,000
16,507
16,507 2,096,000
34,613 4,092 3,916 (1,930,390)
(8,165)
(11,658,4621
(8,165) - - (11,658,462)
26,448 4,092 3,916 (13,588,852)
313,172 97,664 (939,634) 18,444,271
$ 339,620 $ 101,756 $ (935,718) $ 4,855,419
85
CITY OF LA OUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2009
Revenues:
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
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
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
LIU
Capital Projects
Debt Service
Funds
.Funds
'
Total
Redevelopment
Financing
Governmental
Agency PA No. 2
Authority
Funds
$ -
$ --
$ 927,816
-
-
6,952,851
-
10,041
10,041
37,256
676,450
1,279,619
-
-
1,181,728
23'
-
23,867
37,279
686,491
10,375,922
-
12,878
12,878
-
-
41,755
300,643
-
2,434,967
-
-
1,709,418
-
-
1,656,862
-
75,635
' -
1,995,000
- 1,995,000
-
- 4,601,444
4,699,457
300,643
6,609,322
12,625,972
(263,364) (5,922,831) (2,250,050)
5,919,994 5,921,994
(329,496) - (18,086,294)
(329,496) 5,919,994 (12,164,300)
(592,860) (2,837) (14,414,350)
2,626,224 10,793 38,712,173
$ 2,033,364 $ 7,956 $ 24,297,823
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30,,2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 277.862
$ 277,862
$ 277,862
$ -
Resources (Inflows):
Intergovernmental
982,800
982,800
1,050,821
68,021
Use of money and property
7,600
6,000
5,272
(728)
Amounts Available for Appropriation
1,268,262
1,266,662
1,333,955
67,293
Charges to Appropriation (Outflow):
Public works
643,014
29,480
722,724
(693,244)
Transfers out
424,393
464,393
96,553
367,840
Total Charges to Appropriations
1,067,407
493,873
819,277
(325,404)
Budgetary Fund Balance, June 30
$ 200,855
$ 772,789
$ 514,678
$ (258,111)
87
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,084,327)
$ (1,084,327)
$(1,084,327)
$ -
Resources (Inflows):
Intergovernmental
2,628.600
2,628,600
2,636,717
8,117
Amounts Available for Appropriation
1,544,273
1,544,273
1,552,390
8,117
Charges to Appropriation (Outflow):
Community services
1,646,385
1,737,206
1,662,397
74,809
Debt service:
Interest and fiscal charges
15,000
25,000
21,079
3,921
Total Charges to Appropriations
- 1,661,385
1,762,206
1,683,476
78,730
Budgetary Fund Balance, June 30
$ (117,112)
$ (217,933)
$ (131,086)
$ 86,847
FP
CITY OF LA OUINTA
BUDGETARY COMPARISON SCHEDULE
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
200,000 346,110 26,055 (320,055)
200,000 346,110 26,055 (320,055)
195,000 346,110 26,055 320,055
195,000 346,110 26,055 320,055
$ 5,000 $ $ $
9E
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 22,578 $ 22,578 $ 22,578 $
100,000 100,000 100,306 306
500 500 495 (5)
123,078 123,078 123,379 301
100,400 123,078 93,859 29,219
100,400 123,078 93,859 29,219
$ 22,678 $ $ 29,520 $ 29,520
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$
$ -
$ -
$
Resources (Inflows):
Intergovernmental
150,600
212,826
210,432
(2,394)
Use of money and property
-
2,000
-
(2,000)
Amounts Available for Appropriation
150,600
214,826
210,432
(4,394)
Charges to Appropriation (Outflow):
Transfers out
150,600
214,826
210,432
4,394
Total Charges to Appropriations
150,600
214+826
210,432
4,394
Budgetary Fund Balance, June 30 $ $ $ $
91
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPING
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Assessments
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 31,704 $ 31,704 $ 31,704 $
927,900 927,900 927,816 (84)
959,604 959,604 959,520 (84)
927,900 927,900 934,138 (6,238)
927,900 927,900 934,138 (6,238)
$ 31,704 $ 31,704 $ 25,382 $
92
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
RCTC
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (318,391) $ (318,391) $ (318,391) $
1,997,700 4,063,268 2,092,206 (1,971,062)
1,679,309 3,744,877 1,773,815 (1,971,062)
3,744,877 1,773,815 1,971,062
3,744,877 1,773, 815 1,971,062
$1,679,309 $
1*1
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 10,339,918
$10.339,918
$10,339,918
$
Resources (Inflows):
Use of money and property
79,600
200,000
182.718
(17,282)
Developer participation
950,000
53,900
53,855
(45)
Amounts Available for Appropriation
11,369,518
10,593,818
10,576,491
_
(17,327)
Charges to Appropriation (Outflow):
Community services
35,000
67,130
32,130
35,000
Transfers out
457,600
8,995,131
81,180
8,913,951
Total Charges to Appropriations
492,600
9,062,261
113,3 00
8,948,951
Budgetary Fund Balance, June 30
$ 10,876,918
$ 1,531,557
$10,463,181
$ 8,931,624
94
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 18,403 $ 88,403 7$18,403 $
500 425 361 (64)
2,000 2,000 2,000 -
20,903 20,828 20,764 (64)
2,000 2,000 2,000
2,000 2,000 2,000
$ 18,903 $ 18,828 $ 20,764 $ 1,936
95
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer participation
Miscellaneous
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community services
Capital outlay
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$1,066,710
$ 1,066,710
$ 1,066,710
$ -
5,200
17,200
18,852
1,652
97,500
110,000
105,570
(4,430)
-
24,844
23,844
(1,000)
7169,410
1,218,754
1,214,976
(3,778)
36,200
36,535
14,891
21,644
260,000
259,665
75,635
184,030
-
400,000
200,000
200,000
296,200
696,200
290,526
405,674
$ 873,210
$ 522,554
$ 924,450
$ 401,896
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 253,453
$ 253,453
$ 253,453
$ -
Resources (Inflows):
Intergovernmental
48,900
115,900
136,201
20,301
Use of money and property
7,300
4,500
4,651
151
Amounts Available for Appropriation
309,653
373,853
394,305
20,452
Charges to Appropriation (Outflow):
Planning and development
26,600
26,600
27,711
(1,111)
Transfers out
-
67,000
48,203
18,797
Total Charges to Appropriations
26,600
93,600
75,914
17,686
Budgetary Fund Balance, June 30 $ 283,053 $ 280,253 $ 318,391 $ 38,138
Fell
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2009
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
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$1,431,744
$ 1,431,744
$ 1,431,744
$ -
100,900
-
-
40,200
27,500
25,281
(2,219)
1,572,844
1,459,244
1,457,025
(2,219)
-
60,188
10,613
49,575
60,188
10,613
49,575
$1,572,844
$ 1,399,056
$ 1,446,412
$ 47,356
M
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CV VIOLENT CRIME TASK FORCE
vcwo cl4111=11 It IIJF 9n 9nnQ
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original
Final
Amounts
(Negative)
$ 157,862
$ 1 77,862
$ 157,862
$
78,600
77,989
75,808
(2,181)
5,000
3,500
3,269
(231)
241,462
239,351
236,939
(2,412)
57,100
52,100
41,755
10,345
57,100
52,100
41,755
10,345
$ 184,362
$ 187,251
$ 195,184
$ 7,933
m
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION 1B
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ -
$ -
$ _
$
Resources (Inflows):
Intergovernmental
557,171
1,218,713
624,305
(594,408)
Use of money and property
-
5,090
5,552
462
Amounts Available for Appropriation
557,171
1,223,803
629,857
(593,946)
Charges to Appropriation (Outflow):
Transfers out
557,171
1,236,742
629,857
606,885
Total Charges to Appropriations
557,171
1,236,742
629,857
606,885
Budgetary Fund Balance, June 30
$
$ (12,939)
$ -
$ 12,939
100
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Developer participation
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
2,815,841
12,282,997
2,491,733
(9,791,264)
430,000
1,321,633
900,834
(420,799)
6,940,584
91,042,439
22,521,610
(68,520,829)
10,186,425
104,647,069
25,914,177
(78,732,892)
-
104,398.515
25,665,723
78,732,792
-
205,972
205,972
-
-
42,482
42,482
-
104,646,969
25,914,177
78,732,792
$ 10,186,425
$ 100
$ -
$ (100)
101
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INFRASTRUCTURE
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 400,420 $ 400,420 $ 400,420 $
- 6,000 7,083 1,083
400,420 406,420 407,503 1,083
397,576 397,576
397,576 397,576
$ 400,420 $ 8,844 $ 407,503 $ 398,659
102
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 7,893,399
$ 7,893,399
$ 7,893,399
$
Resources (Inflows):
Use of money and property
19,300
143,000
119,063
(23,937)
Developer participation
1,015,100
850,000
825,304
(24,696)
Amounts Available for Appropriation
8,927,799
8,886,399
8,837,766
(48,633)
Charges to Appropriation (Outflow):
Transfers out
1,512,370
8,396,155
2,930,217
5,465,938
Total Charges to Appropriations
1,512,370
8,396,155
2,930,217
5,465,938
Budgetary Fund Balance, June 30 $ 7,415,429 $ 490,244 $ 5,907,549 $ 5,417,305
103
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,513,574)
$ (1,513,574)
$(1,513,574)
$ -
Resources (Inflows):
Developer participation
356,800
60,000
94,999
34,999
Amounts Available for Appropriation
(1,156,774)
(1,453,574)
(1,418,575)
34,999
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
37,500
37,500
26,201
11,299
Total Charges to Appropriations
37,500
37,500
26,201
11,299
Budgetary Fund Balance, June 30
$ (1,194,274)
$ (1,491,074)
$(1,444,776)
$ 46,298
ifSl
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (9,393,000)
$ (9,393,000)
$(9,393,000)
$ -
Resources (Inflows):
Developer participation
'
424,200
100,000
145,087
45,087
Amounts Available for Appropriation
(8,968,800)
(9,293,000)
(9,247,913)
45,087
Charges to Appropriation (Outflow):
General government
202,764
202,764
205,776
(3,012)
Debt service:
Interest and fiscal charges
231,250
231,250
163,478
67,772
Total Charges to Appropriations
434,014
434,014
369,254
64,760
Budgetary Fund Balance, June 30
$ (9,402,814)
$ (9,727,014)
$(9,617,167)
$ 109,847
105
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,949,006)
$ (1,949,006)
$(1,949,006)
$ -
Resources (Inflows):
Developer participation
142,000
30,000
42,606
12,606
Amounts Available for Appropriation
(1,807,006)
(1,919,006)
(1,906,400)
12,606
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
48,750
48,750
34,226
14,524
Total Charges to Appropriations
48,750
48,750
34,226
14,524
Budgetary Fund Balance, June 30
$ (1,855,756)
$ (1,967,756)
$(1,940,626)
$ 27,130
106
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (inflows):
Use of money and property
Developer participation
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 1,130,928
$ 1,130,928
$ 1,130,928
$ -
39,800
30,000
20,088
(9,912)
29,600
5,000
7,884
2,884
1,200,328
1,165,928
1,158,900
(7,028)
$1,200,328 S 1,165,928 $ 1,158,900
107
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STREET FACILTY
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer participation
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 313,172
$ 313,172
$ 313,172
$ -
300
5,000
5,866
866
35,300
35,300
28,747
(6,553)
348,772
353,472
347,785
(5,687)
2,152,707
2,484,563
8,165
2,476,398
2,152,707
2,484,563
8,165
2,476,398
Budgetary Fund Balance, June 30 $ (1,803,935) $ (2,131,091) $ 339,620 $ 2,470,711
108
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer participation
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 97,664
$ 97,664
$ 97,664
$ -
2,000
2,000
1,752
(248)
8,800
2,000
2,340
340
108,464
101,664
101,756
92
$ 108,464
$ 101,664
$ 101,756
$ 92
109
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer participation
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (939,634) $ (939,634) $ (939,634) $
59,600
20,000
20,423
423
(880,034)
(919,634)
(919,211)
423
23,125
23,125
16,507
6,618
1,400,000
-
-
-
1,423,125
23,125
66,507
6,618
Budgetary Fund Balance, June 30 $ (2,303,159) $ (942,759) $ (935,718) $ 7,041
110
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
2004 LOW/MOD BOND
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$18,444,271
$18,444,271
$ 18,444,271
$ -
Resources (Inflows):
Use of money and property
102,000
165,000
165,610
610
Amounts Available for Appropriation
18,546,271
18,609,271
18,609,881
610
Charges to Appropriation (Outflow):
Planning and development
3,052,800
2,096,000
956,800
Transfers out
12,390,202
11,658,462
731,740
Total Charges to Appropriations
-
15,443,002
13,754,462
1,688,540
Budgetary Fund Balance, June 30
$18,546,271
$ 3,166,269
$ 4,855,419
$ 1,689.150
111
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.1 - CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July
$43,124,188
$43,124,188
$43,124,188
$
Resources (inflows):
Use of money and property
300,000
763,000
684,429
(78,571)
Transfers in
15,000,000
5,000,000
5,000,000
Amounts Available for Appropriation
58,424,188
48,887,188
48,808,617
(78,571)
Charges to Appropriation (Outflow):
Planning and development
1,198,868
1.231,198
1,007,276
223,922
Capital outlay
9,000
9,000
-
9,000
Transfers out
85,000
43,013,915
2,872,058
40,141,857
Total Charges to Appropriations
1,292,868
44,254,113
3,879,334
40,374,779
Budgetary Fund Balance, June 30
$ 57,131,320
$ 4,633,075
$ 44,929,283
$ 40,296,208
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 2 - CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Miscellaneous
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 2,626,224 $ 2,626,224 $ 2,626,224 $
84,000 36,000 37,256
- 23
2,710,224 2,662,224 2,663,503
241,086 430,201 300,643
- 399,896 329,496
241,086 830,097 630,139
1,256
23
1,279
129,558
70,400
199,958
Budgetary Fund Balance, June 30 $ 2,469,138 $ 1,832,127 $ 2,033,364 $ 201,237
113
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY - DEBT SERVICE
YEAR ENDED JUNE 30, 2009
Budgetary Fund Balance, July 1
Resources (Inflows):
Charges for services
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal retirement
Interest and fiscal charges
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 10,793
$ 10,793
$ 10,793
$
15,000
15,000
10,041
(4,959)
675,880
676.450
676,450
-
5,919,994
5,919,994
5,919,994
6,621,667
6,622,237
6,617,278
(4,959)
15,800
15,800
12,878
2,922
1,995,000 1,995,000 1,995,000
4,601,444 4,601,444 4,601,444 -
6,612,244 6,612,244 6,609,322 2,922
Budgetary Fund Balance, June 30 $ 9,423 $ 9,993 $ 7,956 $ (2,037)
114
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 1 - DEBT SERVICE
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
- Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 5,084,497
$ 5'084,497
$ 5,084,497
$ -
Resources (Inflows):
Taxes
21,386,188
16,194,332
17,278,996
1,084,664
Use of money and property
173,600
173,600
220,854
47,254
Transfers in
4,444,479
4,444,479
4,444,520
41
Amounts Available for Appropriation
31,088,764
25,896,908
27,028,867
1,131,959
Charges to Appropriation (Outflow):
General government
403,200
563,900
484,171
79,729
Debt service:
Principal retirement
3,745,968
3,745,968
3,745,968
-
Interest and fiscal charges
8,350,190
8,350,190
8,350,190
Pass -through agreement payments
-
-
-
Transfers out
18,966,396
8,966,396
8,966,396
Total Charges to Appropriations
31,465,754
21,626,454
21,546,725
79,729
Budgetary Fund Balance, June 30
$ (376,990)
$ 4,270,454
$ 5,482,142
$ 1,211,688
115
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.2 - DEBT SERVICE
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (4,455,247)
$ (4,455,247)
$(4,455,247)
$
Resources (Inflows):
Taxes
4,242,013
4,219,737
3,597,428
(622,309)
Use of money and property
-
280,000
269,131
(10,869)
Transfers in
1,953,598
1,953,598
1,953,599
1
Amounts Available for Appropriation
1,740,364
1,998,088
1,364,911
(633,177)
Charges to Appropriation (Outflow):
General government
209,300
250,525
261,348
(10,823)
Debt service:
Principal retirement
115,000
115,000
315,000
(200,000)
Interest and fiscal charges
1,961.712
1,961,712
1,961,712
Pass -through agreement payments
-
-
-
Transfers out
1,953,599
1,953,599
1,953,599
Total Charges to Appropriations
4,239,611
4,280,836
4,491,659
(210,823)
Budgetary Fund Balance, June 30
$ (2,499,247)
E (2,282,748)
$(3,126,748)
$ (844,000)
116
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.
117
CITY OF LA OUINTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2009
Governmental Activities - Internal Service Funds
Park
Equipment Information Equipment and
Replacement Technology Facilities Totals
Assets:
Current:
Cash and investments
Receivables:
Accrued 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
Noncurrent:
Accrued compensated absences
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
$ 2,662,736
$ 1,294,017
$ 1.650,705
$-5,607,458
3,018
1,414
1,875
6,307
2,665,754
1,295,431
1,652,580
5,613,765
1,209,701
443,790
14,458,372
16,111,863
1,209,701
443,790
14,458,372
16,111,863
$ 3,875,455
$ 1,739,221
$ 16,110,952
$ 21,725,628
$ 8,989
$ 208
$ -
$ 9,197
-
3,007
-
3,007
8,989
3,215
12,204
-
7,561
-
7,561
-
7,561
-
7,561
8,989
10,776
-
19,765
1,209,701
443,790
14,458,372
16,111,863
2,656,765
1,284,655
1,652,580
5,594,000
3,866,466
1,728,445
16,110,952
21,705,863
$ 3,875,455
$ 1,739,221
$ 16,110,952
$ 21,725,628
118
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2009
Governmental Activities
- Internal Service Funds
Park
Equipment
Information
Equipment and
Replacement
Technology
Facilities Totals
Operating Revenues:
Sales and service charges
$ 716,881
$ 494,201
$ 413,394 $ 1,624,476
Total Operating Revenues
716,881
494,201
413,394 1,624,476
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues(Expenses)
Income (Loss) Before
Contributions and Transfers
Capital contributions
Transfers in
Changes in Net Assets
Net Assets:
Beginning of Year
Changes in Net Assets
End of Fiscal Year
-
113,131
-
113,131
79,531
-
-
79,531
101,560
-
-
101,560
13,730
31,183
90,361
135,274
-
106,209
-
106,209
271,226
104,843
423,559
799,628
15,104
7,324
-
22,428
481,151
362,690
513,920
1,357,761
235,730
131,511
(100,526)
266,715
48,648
24,805
29,554
103,007
21,542
-
-
21,542
70,190
24,805
29,554
124,549
305,920
156,316
(70,972)
391,264
127,122
16,210
64,645
207,977
25,000
-
-
25,000
458,042
172,526
(6,327)
624,241
3,408,424
1,555,919
16,117,279
21,081,622
458,042
172,526
(6,327)
624,241
$ 3,866,466
$ 1,728,445
$ 16,110,952
$ 21,705,863
119
CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2009
Governmental Activities - Internal Service Funds
Park
Equipment
Information
Equipment
Replacement
Technology
and Facilities
Totals
Cash Flows from Operating Activities:
Cash received from/(paid to) interf ind service provided
$ 716,881
$ 494,201
$ 413,394
$ 1,624,476
Cash paid to suppliers for goods and services
(213,755)
(156,903)
(90,414)
(461,072)
Cash paid to employees for services
(108,822)
-
(108,822)
Net Cash Provided (Used) by Operating Activities 503,126 228,476 322,980 1,054,582
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in 25,000 - - 25,000
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase(Decrease)in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
' Depreciation
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in compensated absences
25,000
(71,395) (65,055)
21,542
(49,853) (65,055)
25,000
(136,450)
21,542
(114,908)
54,858- 27,640 32,689 115,187
54,858 27,640 32,689 115,187
533,131 191,061 355,669 1,079,861
2,129,605 1,102,956 1,295,036 4,527,597
$ 2,662,736 $ 1,294,017 $ 1,650,705 $ 5,607,458
$ 235,730 $ 131,511 $ (100,526) $ 266,715
271,226 104,843
(3,830). (12,187)
676
3,633
423,559 799,628
(53) (16,070)
- 676
3,633
Total Adjustments 267,396 96,965 423,506 787,867
Net Cash Provided (Used) by
Operating Activities $ 503,126 $ 228,476 $ 322,980 $ 1,054,582
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds $ 127,122 $ 16,210 $ 64,645 $ 207,977
120
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. 97-1 and 2001-1 —To account for assessments paid to the City for debt
service payments on bond issues used to finance sewer improvements.
121
CITY OF LA QUINTA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2009
Assessment -
Assessment
District No. 97-1
District No. 2001-1
.Totals
Assets:
Cash and investments
$ 138,694
$ 428,276
$ 566,970
Receivables:
Taxes
- 2,396
8,900
11,296
Accrued interest
157
498
- 655
Total Assets
$ 141,247
$ 437,674
$ 578,921
Liabilities:
Deposits payable
Total Liabilities
$ 141,247 $ 437,674 $ 578,921
$ 141,247 $ 437,674 $ 578,921
122
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2009
Balance
Balance
July 1, 2008
Additions
Deductions
June
30, 2009
Assessment District No. 97-1
Assets:
Cash and investments
$ 151,036
$
67,058
$
79,400
$
138,694
Receivables:
Taxes
1,567
2,396
1,567
2,396
Accrued interest
553
157
553
157
Total Assets
$ 153,156
$
69,611
$
81,620
$
141,247
Liabilities:
Deposits payable
$ 153,156
$
67,544
$
79,453
$
141,247
Total Liabilities
$ 153,156
$
67,544
$
79,453
$
141,247
Assessment District No. 2001.1
Assets:
Cash and investments
$
458,128
$
232,607
$
262,459
$
428,276
Receivables:
Taxes
20,755
8,900
20,755
8,900
Accrued interest-
1,696
498
1,696
498
Total Assets
$
480,579
$
242,005
$
284,910
$
437,674
Liabilities:
Deposits payable
$
480,579
$
220,044
$
262,949
$
437,674
Total Liabilities
$
480,579
$
220,044
$
262,949
$
437,674
Totals - All Aqency Funds
Assets:
Cash and investments
$
609,164
$
299,665
$
341,859
$
566,970
Receivables:
Taxes
22,322
11,296
22,322
11,296
Accrued interest
2,249
655
2,249
655
Total Assets
$
633,735
$
311,616
$
366,430
$
578,921
Liabilities:
Deposits payable
$
633,735
$
287,588
$
342,402
$
578,921
Total Liabilities
$
633,735
$
287,588
$
342,402
$
578,921
123
THIS PAGE INTENTIONALLY LEFT BLANK
124
STATISTICAL SECTION
This part of the City of La Quinta's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader
understand how the government's financial performance and
well-being have changed over time. 126
Revenue Capacity
These schedules obtain information to help the reader assess
the government's most significant local revenue source, the
property tax. 132
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. 137
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. 142
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. 145
125
TABLE 1
CITY OF LA QUINTA
Net by Compoomt
Luc Ni0e Fiscal Years
(actual b.is ofacc0uvfmg)
201
2002
2003
2004
2005
2006
20B7
2008
21309
GOvemmcvral aaivinc:
Wvuted w caPiml assets.
m Ofrtlasd debt
S 217,419724
195,474,%5
225,819,022
249,059,500
233,361.129
253.559,1❑
30Q220,033
343,019,328
323,669955
RacnctN
45,438,930
74,156,691
0,038,313
4g415,966
43,421,857
65.159,623
49,277.895
86,041,189
105Z7A68
UvmetricvA
30,699.622
43,025,999
4U%,W0
45,169,328
0,361,071
86,129,376
106.939,577
79,642,102
96,654,981
Tmal govetvmemal+divine om assets
S 293,557T/6
312,659 635
314,14(1,335
338,644,794
337,144,057
4 ,&18,116
456,437,505
N18,702,619
525,622,104
Bui.-type activities:
lovested w apiW users,
.t Ofmlmed debt
S -
_
41,300,846
42.015,172
42,04025
42,778,015
42,767,282
N[attimd
uii. tM
-
(626,6581
(L"S,6461
(2,385,4621
(3,109.5241
_
L4,169,128
T,,tal busmess"type wcm0es vd asum
-
40,674,188
40,409,526
40,306,563
39,668.491
38,599,154
pnmatygovetmvcm:
Icie w,,iml assms,
. of.lmed debt
S 217,419,724
195,474,945
22MM022
249.059,500
294,66L995
295.634189
342,912,058
385,797,343
36Q43],23]
6.Mi
45,438,930
74,156.691
40,039,313
44,415,!IM
43,421,957
65,159,623
49193,895
86A41,189
105.299,168
Uvmmt3
30,698,622
43,025,999
4819Q000
45.169328
59,734,413
84,463730
104,554115
76,532598
92,486853
Toml pnvmty Pvamvn, wusers
S 293,557,276
312,657,635
314,W,335
338,644,794
377,818,245
445,257,642
4%,7",Mg
549,371,110
56 ,221,258
H c: City of V Quema
126
TABLE2
CRY OF LA QiIDJfA
Chnnges in NmA e.
Lmt Nine Fi" Years
(nmwl bun, ofnccuonnng)
Fiscal Yea
2001
2002
ZW3
20W
2W5
20Q9
2007
2008
2"
E pen
activiti<s:
Gen"mW
Gen" gavemmeM
Y
3241,576
S.547.NS
d229,871
6,284,100
6953,07E
7.836,146
Public safety
5,]76,628
5,776,628
7j33,532
8,54],005
0,256.463
10,256,46J
8,512,875
%,SQ,B)5
9,065244
12,R4,100
134R,036
19,A6,941
Community servi.e
90,881
1,411.943
1,321,825
1,446,999
1.157.141
1,426.033
4,299453
5,]99.116
14,908,850
Planting and dewlepment
6,146,998
7,110,125
19,083,860
7516,977
5,752,239
5,906,915
7,736.520
35,03.858
7,317,689
Public woda
5,968,911
6,434,239
6,785.759
6,003,00
9.101,582
10,006,535
[0,511,874
11,097.526
11.100,833
fne,omi on long-t<tm d<W
5,861,632
7.791,759
8,555,401
9658779
15265,051
15,494,656
15,163422
15522,441
15,631.438
T9W V,emmw netiviies expenses
21,841,749
33,512,174
47,497.312
39212.I
43394,794
46,129,054
56,719,711
88,16fi050
76,431897
Busmeclyp< activities:
-
197 291
4523.146
4,520,173
4.761,581
4440,4
Golf Course
-
1977291
4523,146
4,52% ID
4,761,591
4.440,546
Total businesss-t,,e a<nvines elmensa
Tow primary govemmrnm expenses
27841,749
33512 74
47,497,312
39212.009
45262085
50652200
61239884
92921631
80,872,443
Pmgemreeenues:
Gove nmen.l actwiei
Chagos for services:
Oenmd government
214.01
253,891
29$739
331,376
445.M3
717,M9
60.530
8,328
25.053
Public safay
2,860,434
2,544,528
2,917,866
4,iM,621
4,438,115
4,108,206
2,659.515
2,050,492
1373,952
Planning and ]Wmcnt
709,033
5hs.w$
611,278
662,)3]
754,938
1,873,676
169,643
IJ4,211
138,391
Community Wires
123960
170,865
205.06
252,677
252,501
428.947
387A5
374,09E
276178
Publ&wozU
1429,942
1.316373
1,594.225
1,813,993
2,915,703
3,021.379
2,244156
1900,437
2,309,702
Opetamg gmnis and eantnbutmos
I.Wt716
1,699255
1,797,031
1,799,503
1,935,578
3,W3.173
3,796,495
5,905,664
10,72V80
CapiW gran. and.nblbulim.
14,375463
11"2424
5160.405 '
12,090,143
18,591,423
33,919,901
17,601131
50W,419
10.647,210
Tom[ goemnmenw aztivi0cs
21,316149
18211,434
12,585,360
20,961050
29,233,921
47,D2,131
E6918,535
60,461,60
34,493,836
pmgran rcvrnues
Busmems pe acmifie.,
Chage for service:
-
1,091,836
3,120,718
3540]48
3.814,233
3368,135
GolfCaurm
-
-
-
-
-
352.687
CapiW gmn. and eonmbudans
-
Tow buineesryp< activities
-
1091836
3130,73R
3,540,748
4,166.930
3368,115
pfo,rau revenues
Tow pnmuy govcmmrnt
21315.149
18212,434
12,585,360
20,961050
)0 E5,]57
50,852,859
J0,4S9,283
64630,56E
2],861,961
pmgmm meenues
(continued)
(mmimed)
(..firmed)
(continued)
(confined)
(continued)
(continued)
(continued)
(<nommed)
Ne, revenues (e@<nso)•
Govan ml netbine
(6,526.600)
(15,299,740)
(34911.952)
(19.250,9591
(14,15g873)
1.601,077
(29.801,176)
(27,702,407)
(51938,071)
-
-
1785,455)
(1402418)
(979.425)
(594661)
(1072411
Buswcss-type actmifie
TOW not reeenuee(exp.)
(65266*)
(15299740)
p4911952)
(18.2509591
(14936328)
200,659
00790 01]
(282970681
(53010482)
General ¢venues and oMer changes in
Go..w rlWL'n s:
Tees:
Pon"rues
1,162,634
145Q196
1900,616
2,198,141
3579,245
3,679,079
4999,051
6,014,305
6.653,583
Tax inarcment
15,324,193
18.899,329
21, 191,832
24,450,337
27.b3,112
35,16Q29
42,583,031
42,114,893
36.702.197
so..
3,778,583
3,093,588
4,345,381
5240,037
6]]3,566
7,613.075
8.896.716
8,492.213
7,279,513
Ttas.&nt accu,anry
4,249,753
3,947,003
4,036290
4,261,767
4,831,338
5,437,238
5448,361
5,327203
4,480,467
0anc .eaxe
625,790
654,696
690,544
895,810
1.185.087
1. 4 ,470
1,259.985
1,748.082
1,533,249
Env. license mazes
156.026
168,798
186,220
191,062
251.618
276,917
307.032
317,011
285,304
Other rues
359,2&1
311024
513,934
675,996
1,141,177
1,049,701
872,753
641,705
455089
lnvesemenl income
3,578206
3,006,097
1,353,868
1.738,505
4,336,050
6.319,502
11,854.951
10,230,489
7,387.244
Motor vehicle in lieu, um<mieW
1496620
1471,217
1768,Wl
1,608,151
3453.612
2,740,233
3,291,055
3,803,641
3940,801
Gain (loss) on We afw.warse.
(21,397)
-
-
3.711470
1967,292
-
57T,M
21,542
Miecellaneous
292,036
692,691
513,876
1489.612
2.397,474
194T(N3
2,052,246
1,220,627
118,567
-
_
-
(41 459,&0
(1137203) '
(874645)
-
Traufae
Few govemmcn.l..itie
31,023,115
33695242
36,40652
42,749,418
12,650136
66.101,726
90,690,536
79,967,521
68857_516
B.me.ry mmiviti<s-
-
553
1.817
4310
3.074
Nvesmmtin.mc
-
-
-
-
1
(47,721)
-
Gm. (I..) on mle mfenpiw asuls
-
-
-
-
TmnS&rs
-
-
-
41,459,641
I IJ),203 '
874,645
-
_-
-
-
41,459,643
1,137,756
876.462
(43411)
_3,074
Total business -typo vaivines
Tow primary"nenem
-
31,023, 115
-
33.695242
36,4W,652
42,749,419
54,109,779
67239,482
81,566998
79924.110
68,860,610
Changes in ran asu.
Gov.mmnw alivitie
24.496,515
18,395.502
1488,700
24,498,459
(ISWJ3))
67.7W.801
50,8893fi0
51,Zfi5,114
14919,485
-
-
40674,188
(1646627
(102%3)
(6380721
_ I( 0fi9331
Buinem-4wrevives
19,395,502
1488,700
24,499,459
39,173451
67,440141
50,786,397
51621,04E
15.850,148
Told prima, gov<mm<.f
Y 24496515
' nems&rwazf*Tlea d&golfcoaseimpmvem<n.t fe tothe Enmrynu FuM,
127
TABLE 3
CITY OF a QUWA
Chsoga in NnA -Goa< mlA Mtv
tut Nine Fsu1 Years
(accrual basi�afercomvlgJ -
2WI
2W2
2W3
2004
2M
20W
2W]
2W8
2009
Expenus:
Ganal govemnrnt
S 3,146,699
3,241,576
3,203,462
4,319,778
3,595,W
4.229,871
6.284,342
6,953,073
7,836,146
Publr afmy
5,796,628
7,522,532
8.WW5
10,256,463
8.512,875
9.M,244
12,724,1W
13,472,036
19,736,%l
Cmumuityxrv"ra
94Q881
1,411,%3
L321,825
ll1 .99
1,157,141
1,426,033
4,299,453
5,797,116
14.Wk850
plm� WSaxbpment
6,W,998
7,110,125
19.U&&8(
7,526.9V
5,252,239
5,9 ,915
7,736,520
35,323,858
J,D 17,689
Publr wars
5,%8,911
6,4M,239
6,785,259
6.W3,013
9,101.5v
10,",335
IU 11,874
11,W7,526
11,1W,833
Ime von bvg-term ddrt
5.861,632
]791,]59
&555(1
9658]]9
15,265,051
15,494,656
15.163,422
15,52NU
15631438
Tout ga� amivrtm expemes
22,841,749
33,512,174
47,497,312
39,212,W9
43,3U,7"
46,129 054
56,719 711
88,166,050
76,431,897
floemm reveuia:
Charges for
Ge wgovmmem
214,(I
253,891
298,749
Puble fcry
2,860,434
2,544,538
2,917,866
Carrumvwys .
123,9W
170,865
205,806
plmmvig W Oe Pment
7W,033
565,098
611,219
p kworts
1,429,942
1,316X3
1,594,225
Op .r ®suss W eontr3u4oa
1,601,716
1,699,255
1,797,031
Canal grann Wmvinbutioa
14,375,463
11."2,424
5,1W,405
Taut goammcmal activhiR
pogrmn rRvwa
21.315,149
19.212.434
12,585,3(
Ne[pmgram rtvaua(ca'.)
(6,5266W)
_(15,299740)
04,911,9523
Cenral rtvwnlR W o0srs elw�ga m M
aavds:
TMR:
t#ope.Y,.
1,162.634
1,450.196
I,8W,616
Tax'evroncnt
15.324,183
1&899,329
21.191.832
Saks ua
3,r"83
3,093,588
4,345,381
TRnsxsv ocsvpauyrocs
4.249.753
3,961,W3
4,036,2%
F.hse.
625,]90
654,6%
Wsm
BusmRa Ocenve tua
156p26
168,798
186,220
QI¢rm
359,284
311,024
513,934
Motor vd6ck ulieu, ume9rktW
1,496,620
1,473,217
1,768,091
Invrsnrm imonr
3,578.2%
3,WQ097
1,353.W
Gain (bss)on aab ufop iaauu
-
(21,397)
-
Mxc0arcaos
292,036
692,691
513,816
Trm far
ToW gowrvsroral wrivrtbr
31.023.115
33,695,242
36,4W,652
Ghm�ga N M e4ie1S-
govcmnnnulac0v8iR
$ 24,496.515
18,395.502
1,488,700
Source: CByofl Qo a
337,376
445,663
711.849
60,530
V28
25,053
4,OW,621
4,438.115
4,168,206
2,659,515
2,050,492
1,373,952
252,6]]
252,501
428,947
382,W
374,W2
275.178
"Z737
754,938
1,873.676
169,643
134,211
138,391
1,813,993
2,815,703
3,021,379
2,24 ,I%
1,W.437
1.308,702
1,79A503
1,935.578
3,603,173
3,796,495
5,WS,W
10,225,280
lZM,143
18,591,423
33,91&901
17,601.131
50,09 .419
10,W,270
20,%1,050
29,233,921
4],]32, 131
26,918.535
W,46303
24,493,826
(182(959)
(141509731
1,W3,077
(29801176)
(27702(73
(51.938,071
2,19&141
2,579245
3,679.079
4,999,051
6,014,305
6,653,583
24,450,337
2g443,112
35.169,329
42,583,031
42,114.893
36,702,197
5,M.037
6,723,566
7,613,075
8.896,716
- &492,213
7.279.513
4,261,767
4,831,338
5.437,238
5.448,361
5,327,203
4,480,467
895,810
1.185.087
1,044,470
IZ9,985
1,74&082
1,533,249
191,062
251,619
276,917
307,032
317,011
285,304
675,996
1,141,1]]
1,049,701
872,753
641p05
455,089
1,(&151
2,453,642
2,740,233
3,291,055
3,903,647
3,9(,801
1738,505
4,336,0(
6,319,%2
11,854,951
10,230,09
],38],244
-
3,]I],470
1,967,292
-
57,346
21.542
1p89,612
1.397,474
1,943,W3
2,052,246
1,220,627
118.567
_(41 459643)
(1,13] 203)
(8]4,6457
42,749,418
12.650,136
66,101,726
80,6W,536
79,%7.521
6&857,556
24.49&459
(1,5W,737)
6],]04,803
50,889,360
52,265,114
16,919,485
128
0
TABLE
CITY OF LA QUINTA
Changes in Net Assets - Business -type Activities
Last Five Fiscal Years
(accrual basis of accounting)
Fiscal Year
2005 2006
2007
2008
2009
Expenses:
Golf Course
1,877,291 3 4,523,146
4,520,173
4,761,581
4,440,546
Total business -type activities expenses
1,877,291 4,523,146
4,520,173
4,76t,581
4,440,546
Program revenues:
Charges for services:
Golf Course
1,091,836 2 3,120,728
3,540,748
3,814,233
3,368,135
Capital grants and contributions
- -
-
352,687
-
Total business -type activities
program revenues
1,091,836 3,120,728
3,540,748
4,166,920
3,368,135
Net revenues (expenses)
(785.455) (1,402,418)
(979,425)
(594,661)
(1,072,411)
General revenues and other changes in net assets
Investment income - 553 1,817
Gain (loss) on sale of capital assets - - -
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
Changes in net assets - business -type activities 40,674,188 (264,662) 876,462
The City of La Quinta implemented the business type activities in FY
20042005.
The transfer was for land & golf course improvements
transferred to the Enterprise Fund.
3 This was the first full year of operations for the Golf Course
Source: Cityof La Quinta
129
4,310 3,074
(47,721) -
(43,411) 3,074
(638,072) (1,069,337)
TABLES
- CITYOFLAQUINTA
Fwd Belavicea of Govcmmeoul Fuodc
lan Nine Fiscal Years
(modificd accnW basis Ofacwunriog)
Fi a Yca
2001
2002
2003
2004
2005
2006
2007
2008
2009
Grnml food:
Beurved
S 11,746,211
12,897,893
21,099,910
29.210,757
32,412,590
23,210.5%
28,388,633
45,441,896
46,199,160
Uv¢wnxd
23,878,259
27,981,710
26,584,793
25.494,479
31,514,322
53,059,618
56,251,887
47,010,123
46,128,221
Twlgcomlfund
I 35,624,470
Q,M,603
49,684,683
54,705,236
63,926,967
7Q269,124
U,W,520
92,452,019
92,327,391
All omn govemmeatal lauds:
ReservW
I 13.480.545
45,508,787
38,404,982
98,496,000 '
f 99,751,862
95.515,445
31.211.751
11,568,126
25,142,722
Unseserveq fep0OW in:
Special te.. fimrtv
6.352.995
12,107,305
9,382.431
9,2M.459
19.262,394
36,475,093
22.770,552
32,419,068
39.849,825
Capital) Jm fiords
I8,712,013
12,423,247
16,368.205
28,W,240
1,831,415
6,499,822
58,370.198
55,831.061
22,745,150
l is wcmods
(6,80Q030)
(5,622,884)
(6,182,506)
(I1,O9,245)
(7,236054)
738,590
10,634
(4,445,109)
2363,350
Total a0corer gosemmmrel muds $ 31,745523
64,416,455
57,973,112
125,263,454
120,850,671
139,228,955
117.363.135
95,373,146
88.I0I.0Q
The increase was pnmanlym r Wt ofine iasuaoce ofine 2004 Financing AWhonty bonds.
Source: CiryOfLa QWma
130
TABLE 6
CM OF
LA QUINTA
Changes in Fond Balances of Gowmmenlal Funds
Last Nine
Final Years
(modified accmal
buis of neoaunting)
Fiscal Year
2001
2002
2003
2004
2005
201s6
2007
2008
2009
Revenues:
Taxes s
36,605,534
43,011,931
50,326,811
58,301,082
68,175,347
89,704,947
IOQ103,324
105,870,933
99,816,072
Special onenn
782,610
757,619
780,259
816,045
825,292
818,526
877,191
909.229
927,816
❑menus and penmis
2,057,423
1,857,691
1,982,127
3,096,145
3,226,167
5,145,430
2,788,982
2,107,035
871,167
Intergoeetnmeoml
9,400,340
9,583,451
7,194,521
11,958,627
10,242,876
18,585,468
14,803,971
15,382,135
18,679,355
Cbargas foe services
1,998,589
1 757,744
2,302759
2,619,578
3,402,602
3,367,989
1,821,794
1,334,060
671779
Use of money and pmpetty
5,96Q995
5,136,398
4,463,219
4,854,729
9,798.356
12,671,662
14,80Q348
12,874,926
7,043,646
Conulbudons
-
-
-
-
-
-
-
37,643,190
24Q591
loos
2,592,398
2,298.647
3,021,245
5718,073
6,091,156
12,473,440
5,310,440
6,537,991
2,243,785
Other
502,717
584,197
483,777
1,359,539
528,%3
637,054
412,353
629,471
720,185
Total revenues
59190,606
6t,987,678
70,554718
88,623,917
102,290,699
143,4W,516
140 922,303
183,288,970
131,216,396
Expenditures
Cunenr,
GeoerA govemment
3,275.624
3, 16t,596
3,3"A7
4,0 .376
3,970 921
4,644,954
6,150.699
7,367,144
7,230,436
Public safety
5,636,154
7,610,308
8,344,428
9,672,708
12,364,583
13,029, 187
15,685,493
17,181,775
18,946,866
Mooing and devdUpmem
6,344,7(i4
10,693,374
7,80 ,294
7,480,421
5,719,373
5,847,563
28,994.177
15,374,160
7,261,835
Commmdly urvices
817,460
1,067,837
993,964
1,025,397
1, 104,509
1,248}08
4,027,302
5,336757
4,698,985
Public woks
2,613,929
2,897,312
3,685,050
4,536,589
6,206,769
6,987,014
6,755,507
6,563,494
6,324,055
Capita pmjems
14,456,314
57,342,978
16,057,578
43,331,919
40,012,387
25,445,550
36,420,417
82,893,317
32,363,959
Debt service:
Priteipd retimnent
4,510.420
11,453,487
2,931,952
3,610,538
3,793,660
4,777,748
5,647,940
5,949,311
6,319,580
Interert and fiscal charges
5,942,929
7,017,016
9,469,314
13,961721
14,355,577
15,554,612
15,059,977
15,424,708
15,348,598
Payment to bond eve w
-
-
-
1,591,107
-
-
-
Payments underpass-0tough obligpl
10,949,38I
13,669,166
17,561,994
21,448,147
25,756,321
35,958,291
36,498,575
42,989.023
42,426,610
Tout expeodlanu
54,546,974
114,913,074
70,192,981
110,757,923
113,284,100
113,493,227
155,240,087
199,069,689
140,920,884
Exccss(deficlency) of
revenues over (under)
expeMimres
5,353,632
(49,925,396)
361,737
(22 134,106)
(10,993,401
29,911,289
(14 317 784)
(15780,719)
(9704,488)
OWef fn.i.g SOWc05 (nsES):
Issuarcc of tax ellocmion bonds
-
88,000,000
-
26,400,000
-
-
-
-
-
Issuanu of revenue bonds
-
-
90.000.000
-
-
-
-
-
Paymenttobondescmw
-
-
(19,955,000)
-
-
-
-
Transfersin
17,911,515
64,255,5%
23,897.256
154,613,662
49,248,081
35,828,335
0,954,576
88,600.682
40,502,929
Transfers cot
(17,91015)
(65,255,590)
(23,887,256)
(154,613,662)
(49,248,081)
(35,992,525)
(0,954,576)
(87,342,608)
(44527,930)
Other debt issued
2.332,752
Capital leues
-
-
-
-
-
-
-
182,094
-
Pmceo&fromsaleofeapimlmwu
-
146,603
-
-
8,566,295
8,209,396
124.097
158A61
-
Total other financing
s0orces(mc0
871146,603
%,445W0
8,50,295
8,045,206
1241097
1,602,229
2,307,751
N. change in fund balances
s 5,353,632
37,221 207
361,737
74,310,894
$ (2,427,106)
37,956,495
(14,193,687)
(14,178,490)
(7,396,737)
Debt service as a permnrege of
nomapital exwodimms
49A%
54,2%
43.5%
57.9%
62.0%
65.5%
61.0%
47.1%
59.0%
Somme: Cilyof V Quinta
131
TABLE 7
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
Entire City (including Redevelopment Agency)
Fiscal Year
Taxable
Ended
Less: Assessed
June 30
Secured Unsecured Exemptions Value
2000
2,674,887,437 18756736-38580062 2,655 064 111
2001
2002
2003
2004
2005
2006
2007
2008
2009
2,665,520,656
3,162,945,116
3,789,678,041
5,412,382,710
6,289,493,552
7,856,383,375
9,986,151,525
11,854,669,637
12,410,626,893
18,712,736
30,599,753
32,607,713
40,940,877
44,014,548
72,554,357
88,740,840
101,433,002
113,185,065
(39,914,784)
(50,149,068)
(54,726,303)
(95,420,075)
(113,037,003)
(115,071,146)
(99,245,721)
(89,688,505)
(107,777,195)
2,644,318,608
3,143,395,801
3,767,559,451
5,357,903,512
6,220,471,097
7,813,866,586
9,975,646,644
11,866,414,134
12,416,034,763
NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited
property taxes to a total maximum rate of l% 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
132
Direct
Perent Change
N/A
-0.40%
18.87%
19.86%
42.21 %
16.10%
25.62%
27.67%
18.95%
4.63%
TABLE 8
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency
Last Four 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
(35,653,495)
3,956,028,967
199,398,233
3,756,630,734
2007
4,789,836,901
34,084,343
(36,081,051)
4,787,840,193
199,398,233
4,588,441,960
2008
5,223,508,114
34,250,061
(36,913,004)
5,220,845,171
199,398,233
5,021,446,938
2009
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
June 30 Secured Unsecured Exemptions Value Year Increment
2006
2,132,426,502
32,999,788
(54,125,422)
2,111,300,868
95,182,755
2,016,118,113
2007
2,434,082,787
42,914,862
(53,144,959)
2,423,852,690
95,182,755
2,328,669,935
2008
2,764,306,278
50,616,017
(40,774,044)
2,774,148,251
95,182,755
2,678,965,496
2009
2,843,981,136
62,180,440
(57,076,727)
2,849,084,849
95,182,755
2,753,902,094
Source: County of Riverside Auditor -Controller
133
TADLE9
CITYOFLAQUI A
Dben aM Ovsrbpping Propu yTu Men
(R eperslWOfnaesadvabe)
Lot Fom Fiscal Ycar
C'ty
RMevebPment
RMevebpmwt
Non-Pmjw Arm
Pmj. Area l
Proj. Arw 2
20W1 2001' 2008' 2009'
20Wa 2W/a 2008a
20094
20061 2W21 20084
2M'
Diem Rams:
COyofL Qumm
-0.07W 0,070 0.070 &0506
G-MW 0.0000 0.0000
0.5213
0.0000 00000 0."0
O.W16
` RMeusbpmem agewy Project Area l
0.(MI 0.1m) OOOW O.WW
0.5830 05HO 0.5150
00000
0.0000 0.00W O.OWO
0.IX)w
Redevebpment agency Pmj a Ama 2
O0WM OAMW 0 0000 0 (M
0.0000 0."a 0.(M)
00000
02860 0.2920 02910
0. 0
Comrtyof Rlv w
0,190 0.1960 0A M 0.2586
03470 034W 0.34W
025W
0.3420 03470 0,3420
02501
Cowry F. Library
0.0250 0,0250 0.0250 0.02M
O.WIO O.W10 MID
0.02W
O.W10 O.WIO O.WIO
0.0285
COmvy Strut F PM=Wn
0.0540 0.0540 00540 OW10
O.W30 O.W20 OW20
0."1
O.W20 OM20 O.W20
0.0614
Coacbelb Valky(CV)Un S wol
00000 0.0000 0.0000 O.WOO
0.0120 O.D150 OM20
0.0149
O.OI1W 00000 O.W20
0.3W0
D wSv Unified School
OA3M OA320 OA320 0.3265
O.OIW O.OIW 001"
0.0695
0.2W0 0.19W 0.1940
0.1920
Dcen CommwityColkge
0.0200 0.07W O.WW 0.0982
OW30 O.W3O 00920
0.0121
OD420 0,WIO O.M10
0O4W
R .idc Comny Ofm of tiu n
0.0380 00380 0.0380 OM$
0.W30 O.W30 0.0180
0.0093
00230 0.0220 OM20
0.0217
_ Riverside County Regbnnl Park &Open Space
00040 OOMO O.W40 &WOO
0.0 O.00W OW30
0.0000
OAWW 0.0000 0.0000
O.WW
CV PWIb Cemetery
OA032 O.W32 0.0032 OM35
O.00W O.00W O.00W
O.WOB
0.0 O.(OW G.0
O.Ml
CV M.,W.
0.0127 0.0127 00122 0.0142
0.0120 0.0120 0.0120
0.0112
0.01M 00140 OAM
0,0141
Desert Rareariov DMria
00192 0.0192 00192 OA215
D.WIO O.W20 O.WIO
O.W44
&IX)W 00060 OOww
OW58
CV Wmm Diamin
0.0250 0.0250 0.0250 0.02M
0.0130 0.0130 O.WIO
00122
OA220 0.WW OMW
00242
CV Remume Coom ion
0."3 00003 O.W03 &.
O.00w 0.0000 00130
0."1
OOOW 00000 0.(X)W
OW4N
CV" Dimic1lD Service
&0118 0.0118 0.0118'Omm
O.IMI O.0000 O(M
00000
0.WiM &(Ml O.00W
0OW4
CVWD Storm Water Uw
O.W20 OA320 00320 0030
O.WIO OWID 0.0000
Oq
OW10 OWIO OW10
OW11
TOmI Dbect fw<
0.9992 0.9992 0.9992 L( W
I.0000 I.W W L W
LW00
1.0000 I.QWO I.01100
t mix
Tax Rak Area
02OW50204 5020O050204p5
0204115020-01502A089020-089
020-IM020-146020-IM 02O144
Orc Iwn8Rmct:
CuyafLa Qu.
-
CoumyofRivemide
Riversde ComtyOfi efEdacmioo
IUvem to Cowry Pension Ob4ation
Desert SaM Umfiel
0.0261 00261 0.0799 OXW
00962 0.0261 00256
00299
O0967 0.0761 00256
0.07"
Coachella Valk, Ur,f School District/
Coacbella Vaky Wao District
0.OM2 00332 0.0462 0.0464
001" 00208 0.0484
0.M
0.0442 DO332 0.04M
0.0464
Coachella Valley Rm awn & Pa Distrin
Des4t Comm Colkge District
&OM OAM 001" 0.01"
0.0208 0.01" 0.01"
&0199
001" &0199 0,01"
0.01"
TOW Ov Iappinq Pam
0.14W 0.1293 OA461 O.1462
OA175 0.1169 0.1440
0AW
0.1409 OAN3 0.14W
0.1462
TOW Dnmty Ovek,4 Rite LIMI 1.1285 1,1453 1.1462 L1125 1.1169 L1440 1.1462 I.M9 L1293 1.1M0 1.1462
Source: CamvyofRrvxrsi&AWnor COntrOD Od
Duna men 0om Tan Rate Ama(1 )0204159 p.v by Nd1 Corers&Core vN
Overbpping deb Wt GOm Calibmia Murvcynl Smtma
Dimas rue taken fiomall wnRDA TRA's provided by the Coamy ofRivervde aM do rot
w1W. ERAF deductioro aM overbpping mto provided by Glifamu Mu ipal S,rtq
r D.W-v Wk Gom m amtysis byI City of"Qumm Fb Deparment anfofa
TRA's m the Project arcs and do wt mr State ERAF dnWenooeaM overJp W, taco
ploy by Cee6mia M.,W S.0
aD eve taken Gomm vWl zofll TRA m the Pmjact veer vd do wt ur Stme
ERAF dMuniom aM overbppbg nto pmvMW by G4Wmia Mwk�al Smtietks
r Overlappb�g rams arc band span esmgk to wearea Doty. -
134
TABLE 10
CITY
OF LA QUINTA
Principal Property Taxpayers
Current
Year and Nine Years Ago
(in dollars)
2009
2000
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
KSL Desert Resort, Inc
$ 351,987,688
1
2.83%
234,840,723
1
8.85%
TD Desert Development
123,545,144
2
1.00%
31,304,041
3
L18%
East of Madison
63,848,760
3
0.51%
-
-
Sams Real Estate Trust[Wal Mart
50,062,387
4
0.40%
12,506,912
10
0.47%
ND La Quinta Partners
42,929,365
5
0.35%
-
-
Coral Option I LLC
41,623,109
6
0.34%
-
-
Griffin Ranch
40,240,602
7
0.32%
-
-
Village Resort
33,809,065
8
0.27%
-
-
Inland American LQ Pavillion
32,260;312
9
0.26%
-
-
Toll California V
32,130,633
10
0.26%
-
-
Sunrise Desert Partners
-
-
58,121,909
2
2.19%
La Quinta Golf Properties
-
-
17,334,631
4
0.65%
Eagle Hardware and Garden Inc.
-
-
14,718,050
5
0.55 %
Capital Pacific Holdings
-
-
13,312,797
6
0.50%
M & H Realty Partners II
-
-
13,018,671
7
0.49%
Mery Griffin Trust
-
-
12,513,569
8
0.47%
Tradition Club Associates
-
-
12,513,272
9
0.47%
$ 812,437,065 6.54% 420,184,575 15.82%
NOTE :The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
Source: HdL Coren & Cone
135
TABLE I
CITY OF LA QUINTA
Property Tax Levies and Collections
Last Four Fiscal Years
(in dollars)
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2006
61,420,601
73,097,362
119.01%
2,092,062
75,189,424
122.42%
2007
74,170,170
83,797,365
112.98%
1,802,076
85,599,441,
115.41%
2008
83,018,429
87,804,912
105.77%
3,216,547
91,021,459'
109.64%
2009
83,934,188
86,721,572
- 103.32%
1,471,940
88,193,512
105.07%
NOTE:
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also in
amounts collected by the City and Redevelopment Agency that were passed -through to other agencies.
136
TABLE 12
Governmental Activities
Reimbursement Agreement
Compensated Absences
Capital lease
USDA Loan
Provident Savings Loan
Due to Coachella Valley Unified School District
Due to County of Riverside
Developer Agreement
Tax Allocation Bonds Project Area 1
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds
City Hall Lease Revenue Bonds
Unamortized Discount and Issuance Costs
Total Govemmental
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type
Last Four Fiscal Years
(in dollars)
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
2006 2007 2008 2009
$ 328,311 $
278,311 $
228,311 $
178,311
608,266
734,055
829,227
919,100
-
-
-
149,169
_
-
-
751,754
-
-
-
1,556,283
5,186,627
4,431,178
3,675,731
2,874,653
1,850,000
1,750,000
1,600,000
1,400,000
776,030
643,539
511,048
343,814
141,785,000
139,145,000
136,350,000
133,390,000
6,130,000
6,025,000
5,915,000
5,800,000
89,265,000
87,745,000
86,175,000
84,560,000
6,245,000
5,900,000
5,540,000
5,160,000
(877,230)
(877,230)
(841,087)
(804,944)
251,297,004
245,774,853
239,983,230
236,278,140
Business -type Activities
Capital Leases 1,090,602 825,848 681,048 285,217
Total Business -type activities 1,090,602 825,848 681,048 _. 285,217
Total Primary Government $
252,387,606 $
246,600,701 $
240,664,278 $
236,563,357
Population - State Department of Finance January 1
38,340
41,092
42,958
43,778
Number of Households
18,762
20,176
21,058
21,355
Median Household Income $
65,906 $
67,754 $
74,683 $
76,227
Percentage of Personal Income
Debt Per Capita
20.41% 18.04% 15.30% 14.53%
$ 6,583 $ 6,001 $ 5,602 $ 5,404
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
t The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment
Project Area 1 & 2 low & moderate income tax increment.
137
TABLE 13
CITY OF LA QUINTA
Ratio of General Bonded Debt Outstanding
Last Four Fiscal Years
(In Dollars)
Outstanding General Bonded Debt
Fiscal Year City Hall Lease 2004 Tax Percent of Per
Ended Lease Local Agency Allocation Assessed Median
June 30 Obligation Revenue Bonds Bonds Total Value I Household Income
2006
6,245,000
89,265,000
147,915,000
243,425,000
2.44%
$
3,694
2007
5,900,000
87,745,000
145,170,000
238,815,000
2.01%
$
3,525
2008
5,540,000
86,175,000
142,265,000
233,980,000
1.88%
$
3,133
2009
5,160,000
84,560,000
139,190,000
228,910,000
1.84%
$
3,003
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
138
TABLE 14
CITY OF LA QUINTA
Direct and Overlapping Debt
June 30, 2009
City Assessed Valuation
Redevelopment Agency Incremental Valuation
Total Assessed Valuation
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
$ 4,607,425,776
7,808,608,987
$ 12,416,034,763
Percentage
Applicable
Outstanding
Debt 6/30/09
Estimated
Share of
Overlapping
Debt
7.870%
$ 325,869,507
25,645,930
31.509%
92,297,458
29,082,006
7.801%
296,353,845
23,118,563
84.351%
4,170,000
3,517,437
6,628%
1,960,000
129,909
100.000%
1,885,000
1,885,000
100.000%
1,350,000
1,350,000
86.247%
2,185,000
1,894,497
726,070,810
86,613,342
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
1.680% $
760,794,659
12,781,350
1.680%
382,090,000
6,419,1 12
1.680%
8,270,000
138,936
31.464%
52,945,000
16,658,615
7.801%
72,505,000
5,656,115
11.581%
5,240,000
606,844
13.222%
2,455,000
324,600
1,284,299,659 42,585,572
$ 1,284,299,659 129,198,914
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 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
ino]
TABLE [5
CITY OF LA QUB4TA
Legal Debt Margin lnfomution
lam Nine Fiscal Yews
( in &H.1
2001
2002
2003
204
2005
2006
2007
2006
2009
Ames ve0u0on
S 2,641,318 08
3,143,395,801
3,767,559,451
5,357,903,512
6,220,411,099
7,813,8615,586
9,975,646,E ,l
IL866,414,134
12,416,034,763
Debt limit,eromen,
15%
15%
15%
15%
15%
15%
15%
15%
15%
Debt limit
396,W,791
. 471,509,370
565,133,918
803,685,527
933,00,665
1,122,07%988
1,496,34Q992
1,229,962,120
1,862,405,214
Tool net debt *pliable w limit
General abligmion bonds
hied debt nurgm
S 396,649,991
471,509,370
565,133,918
803,MS,522
933,010,665
1,1T2,O79,988
1,496,346,997
LT/9,962,1M
1,862,405,214
Total debt applicable to W Bmit
as a ,eneenui a cleN limit
OA°.
U.M.
0.0%
O.M.
00%
0.1 /.
OA :
O.M.
0.01/.
Section 43605 afoe Government Cade ofebc State ofGlifomia Omits Ne amoum ofindebedness forpublic
ingmvaneoes to 15%of We assessed vilminn, ofall real and personal pmpeny of the City.
The City of Ln On ma bas no general bonded indebndne n.
Soumn: Cityofla Quinm Financeflepanmentbaseduponthe AssessM maonreceivMfmmtbe County
of Riverside Auditor Co."][. Office
140
TABLE t6
Fiscal Year
Ended
2006
2007
2008
2009
Fiscal Year
Ended
2006
2007
2008
2009
Fiscal Year
Ended
June 30
2006
2007
2008
2009
Fiscal Year
Ended
2006
2007
2008
2009
CITY OF LA QUINTA
Pledged -Revenue Coverage
Last Four Fiscal Years
(In Dollars)
Tax Allocation Bonds - Project Area 1
Tax Less: Other Net Tax Debt Service
Increment
Debt Payments
Increment'
Principal
Interest
Coverage'
36,506,201
20,638,731
15,867,470
2,500,000
7,805,905
1.54
42,029,503
20,820,149
21,209,354
2,640,000
7,658,900
2.06
43,476,312
25,383,713
18,092,599
2,795,000
7,500,553
1.76
40,519,380
25,046,356
15,473,024
2,960,000
7,330,188
1.50
Tax Allocation Bonds - Project Area 2
Tax
Less: Other
Net Tax
Debt Service
Increment
Debt Payments
Increment
Principal
Interest
Coverage'
19,849,893
17,325,411
2,524,482
100,000
319,168
6.02
20,777,158
18,553,875
2,223,283
105,000
314,785
5.30
23,087,750
20,929,512
2,158,238
110,000
310,135
5.14
22,783,714
21,042,814
1,740,900
115,000
305,184
4.14
2004 Local Agency Revenue Bonds
Tax Less: Other Net Tax Debt Service
Increment 3 Debt Payments Increment
14,089,024
15,701,664
16,641,016
15,825,773
14,089,024
15,701,664
16,641,016
15,825,773
Principal
Interest
Coverage
735,000
4,436,981
2.72
1,520,000
4,402,909
2.65
1,570,000
4,356,806
2.81
1,615,000
4,304,994
2.67
Local Agency Revenue Bonds (City Hall Project)
Lease Less: Other Net Lease Debt Service
Revenue Debt Payments
Revenue
Principal
680,575 -
680,575
330,000
678,865 -
678,865
345,000
675,880 -
675,880
360,000
676,450 -
676,450
380,000
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements.
Interest Coverage
350,575
1.00
333,865
1.00
315,880
1.00
296,450
1.00
t Tax increment has been reduced by other debt payments, which may or may not be subordinated to Tax Allocation
Bonds
3 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 1 and Project Area 2 Low & Moderate Income Funds are used to pay
the annual debt service payments.
141
TABLE 17
CITY OF LA QUINTA
Demographic and Economic Statistics
Last Four Calendar Years
Calendar
Calendar
Calendar
Calendar
Year
- Year
Year
Year
2006
2007
2008
2009
City Land (Sq Miles)
(3)
35.1
35.1
35.31
35.31
Population
(1)
38,340
41,092
42,958
43,778
Median Household Income (in dollars)
(4)
$65,906
$67,754
_ $74,683
$76,227
Number of Dwelling Units
(3)
18,762
20,176
21,058
21,355
Persons per Household
(3)
2.855
2.846
2.851
2.851
Average Income per person per household
$23,084
$23,807
$26,195
- $26,737
Labor Force
(2)
14,500
15,300
15,200
14,800
Employment
(2)
14,100
14,900
14,600
13,700
Unemployment Rate
(2)
2.76%
2.61%
3.95%
7.43%
Median age
(4)
36
36.4
36.4
36.4
Sources: (1)State of California Department of Finance- January l of each year
(2) State of California Economic Development Department website
(3) City of La Quints Building & Safety and Community Development Departments
(4) Desert Wheelers Newsletter City Overview
142
TABLE 18
Employer
Activity
Desert Sands Unified School Distict
Government
La Quinta Resort & Club
Hotel & Golf Resort
Wal-Mart Super Center
Retailer
Rancho La Quints
Golf Resort
Home Depot
Retailer
Imperial Irrigation District
Public Utility
Costco
Retailer
Lowe's Home Improvement
Retailer
Target
Retailer
Stater Brothers
Grocery Store
Vans
Grocery Store
City of La Quinta
Government
Ralphs
Grocery Store
PGA West
Golf Resort
Total employment listed
Total City Employment - July I
CITY OF LA QUINTA
Principal Employers
Current Year and Nine Years Ago
2008-2009
1999-2000
Percent of
Number of
Total
Number of
Rank
Employees
Employment
Employees
Rank
1
2,415
17.63%
525
3
2
1,210
8.93%
1,500
1
3
463
3.38%
280
4
4
200
1,46%
150
6
5
190
1.39%
185
5
6 '
164
1.20 %
-
7
157
1.15%
-
8
140
1.02%
125
8
9
125
0.91%
10
120
0.88%
150
6
-
103
9
11
107
-
74
11
-
t00
to
1,100
2
5,291
37.84%
4,292
13,700
11,400
"Total Employment" as used above represents the total employment of all employers located
within City limits with over 100 employees
Source: 2008-2009 Muniservices, LLC and 1999-2000 City of La Quinta
The total City employment and % applicable for 2000 was not available
1 Lowe's Hardware acquired Eagle Hardware
143
TABLE 19
CITY OF LA QUINTA
Full-time City Employees
by Function
Last Five Fiscal Years
-
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending
Ending
June 30
June 30
June 30
June 30
June 30
Function
2005
2006
2007
2008
2009
Administration -
8.00
9.00
10.00
12.00
12.00
City Clerk
5.00
5.00
5.00
6.00
6.00
Finance
8.00
9.00
9.00
9.00
9.00
Community Services
8.00
10.25
10.25
11.25
11.25
Building and Safety -
21.00
22.00
24.00
25.00
25.00
Planning and Development
9.00
12.00
12.00
12.00
12.00
Public Works
23.50
26.25
26.25
28.25
29.25
Golf Course
0.50
0.50
0.50
0.50
0.50
Total
83.00
94.00
9T00
104.00
105.00
Source: City of La Quinta
NOTE: The City of La Quinta contracts with the County of Riverside for Police
Services and with the Califomia 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.
144
TABLE 20
CITY OF LA QUINTA
Operating indicators
by Function
Last Four Fiscal Years
2006
2007
2008
2009
Finance:
Number of Active Business Licenses
3,208
3,424
3,690
3,523
Number of Animal Licenses Processed
892
I,022
1,272
1,609
Number of Accounts Payable Checks Processed
4,696
4,722
4,840
4,819
Number of investment purchases
39
73
64
36
Par value of investments
$327,417,000
$392,729,000
$424,500,000
$229,969,000
Number of cleared checks
5,081
4,837
5,501
5,269
Number of outgoing bank wires
202
158
136
9l
Public Works:
Encroachment permits issued
304
218
110
132
Request for services
618
419
1152
1931
Building & Safety:
Permits:
Single family Detached
1,044
526
297
129
Single family Attached
227
38
0
6
Residential Pool
866
612
331
207
Wall/Fence
1,502
963
583
299
Other
1,607
1,404
1,121
908
Total Permits
5,246
3,543
2,332
1,549
Code Compliance:
Animal Control Incidents Handled
1,901
687
2,920
3,630
Vehicle abatements
909
296
351
346
Garage Sale Permits
1,190
1,444
1,519
1,535
Weed abatements
141
76
117
97
Nuisance abatements
1,611
2,032
2,142
3,130
Community Services:
Library activities:
Library Volume -
42,050
44,981
66,124
81,124
Library books checked out
55,002
99,659
117,738
215,843
Library Cards Issued
5,550
5,325
3,675
3,684
Number of School Children Visiting Library
745
260
841
1,036
Library Volunteer Hours
1,891
1,583
1,951
2,342
Senior Center:
Number of visits
14,305
12,955
14,013
15,739
Senior Center Volunteer Hours
3,481
4,192
3,332
2,583
Recreation activities:
Participants:
Leisure Classes
1,373
1,192
990
1,140
Special events
4,668
7,809
8,109
11,053
Adult Sports
3,402
6,827
8,550
10,806
Golf course:
Golf rounds played
38,934
40,548
40,516
39,150
Average $ Green fee
71.12
76.97
81.09
76.13
Planning and Development:
Number of residential units approved
1,063
534
338
t00
Commercial square footage approved
533,726
124,821
342,502
390,097
Source: City of La Quinta
145
TABLE 21
CITY OF LA QUINTA
Capital Asset Statistics
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
2006
2007
2008
2009
Public works:
Streets (miles)
118.40
122
127
127
Bikepaths (miles)
22.00
22
22
22
Streetlights ,
73
85
85
261.00
Traffic signals
44
45.25
45.25
49
Traffic Signs
2,799
2,845
2,895
2,899
Bridges
12
12
12
12
Parks and recreation:
Parks
12
12
13
13
Park Acreage
207
207
209
209
Undeveloped Park Acreage
40
40
40
40
Senior Center
I
1
1
1
Museum
1
I
1
I
Library
1
1
l
1
Golf Course:
Municipal golf courses
1
1
1
I
Source: City of La Quinta
In Fiscal Year ending 2009 street lights at intersections were included for the first time
146
TABLE 22
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2009
Company Name
Policy Number
Covent
Limits
Term
Premium
Hartford
72BPFEW0254
Employee Dishonesty,
$1,000,000
12/3/08-09
$3,013
Forgery, Computer Fraud
Lexington
5467276
All Risk Property Insurance
63,550,220
07/01/08-7/01/09
59,258
Including Auto Physical Damage
(Excluding Earthquake)
Pacific Ins
RV0004288
Earthquake;
20,000,000
02/07/09 - 10
160,387
Nat'l Fire & Marine
CV0004288
Real & Personal Property
Lloyds
04-20221100
Including Contingent Tax Interruption
Travelers Ins Co
213450M0084
Boiler& Machinery
57,728,500
2/7/08-7/I/09
1,579
Earned prem
California
Comprehensive General
$50 Million
07/01/08-7/01/09
281,125
Joint Powers
Liability
Single Limit per Occurrence
Insurance Authority
California
Worker's Compensation
10,000,000
07/01/08-7101/09
172,941
Joint Powers
Insurance Authority
California
Environmental & Liability
10,000,000
07/01/08-7/01/09
19,215
Joint Powers
Insurance Authority
147
THIS PAGE INTENTIONALLY LEFT BLANK
148
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item B
Meeting Date: December 9, 2009
ITEM TITLE:
Month End Cash Report - November, 2009
BACKGROUND:
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances), but would report in a timely fashion
selected cash balances. Also included is a historical analysis of investment
limitations by category.
RECOMMENDATION:
Information item only.
Ae Aft
John M. Falconer, Finance Director
$
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Bill Lockyer, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
Date
Daily
Yield
Quaifer to
DateYieI
Average
Maturity
(in'da s)',
11 /6/2009
0.63
0.64
255
11 /7/2009
0.63
0.64
255
11/8/2009
0.63
0.64
255
11/9/2009
0.63
0.64
255
11/10/20091
0.63
0.641
253
11/11/2009
0.63
0.64
253
11/12/2009
0.62
0.64
248
11/13/2009
0.62
0.64
248
11/14/2009
0.62
0.64
248
11/15/2009
0.62
0.64
248
11/16/2009
0.61
0.64
242
11/17/2009
0.61
0.64
240
11/18/2009
0.61
0.641
239
111/19/20091
0.591
0.641
237
0--
LAW Performance Report
Quarter ending 9/30/2009
Apportionment Rate: 0.90%
Earnings Ratio: .00002459481708038
Fair Value Factor: 1.001560611
PMIA Average Monthly Effective Yields
Oct 2009 0.646%
Sept 2009 0.750%
Aug 2009 0.925%
Pooled Money Investment Account
Portfolio Composition
$63.3 Billion
10/31 /09
Loans
17.23%
Corporate Bonds
0.30%
Commercial Paper
10.59%
Now Accoi
0.23%
Time Deposits
8.10%
CDs/BNs
5.96%
19.55%
Treasuries
36.58%
Mortgages
1.46%
3
Recent lull Auction Results
Yage 1 or 1
N 1 llI I A1,1,1i Ieala 0 Res ltcytA-t n D-d P9c 3111 Aic rI RezulL,
Recent Bill Auction Results
secuNY
Issue
M.u."'y
Ditonnl
1n veR me nl
vnce
[U51p
Term
Dxe
Date
Rare %
axte %
ver slot/
13 WEEK
12-03-2009
03-04-2010
0.06E
OA61
99.9a*33
912795T50
26-WEEK
12-03 2009
06-03 2010
0. 150
0.152
99.9241E7
91279SUSS
4-WFEK
11 27 2009
12 24 2009
006E
0 061
99,995500
m2795R52
13 lYF.EK
11-2]-2009
02 251010
0.040
0.041
99.900000
912195T43
26-WEEK
11-272009
05-22-2010
v. 140
0.142
99.929611
912795USS
4-WEEK
11-192009
1292009
Q
0,050
OA51
99.996111
91279SS69
13 WEEK
11 I9 2009
02 3E 2010
0.065
006E
99 983569
912795T35
26'WEEK
it 19-2009
05-20-2010
0. 165
0.162
99.91656E
91279SUR0
52 WEEK
11-19 2009
11 10 2010
0.315
0 320
99 601500
912295U)8
4-WEEK
1112 2009
12 10 2009
0.060
0.061
99,995333
912795R32
13 WEEK
11-12 2009
02-11-2010
0.065
0.066
99.9tl1sti9
912995122
26'WEEK
11-12-2009
OS-13-20 O
0.Its
0.162
'19.916563
912995UQ2
- 4WEEK
1105-2009
il03-2009
0.03Y
0.035
99.9912M
912,95Q61
13 WEEK
11-05-2009
02-04-2010
0.060
0.061
99.904933
91219550E
26-WEEK
11 05 2009
05-06-21110
0. 190
0. 123
99.91405E
it 2195llet
300-DAY
10-30-2009
08-26-20ID
0.315
0.320
99JB2500
9122951,182
4-WEEK
30-2920"
11-D N09
0.045
0.046
99996I Ii
912295Q53
42-DAY
10-29-2009
11-10 EE09
0.060
0.061
99,99300E
912296R32
13-WEEK
10-29-2009
01-28-200
0.0]5
0.026
99.90 O12
112,95522
- 26WEEK
10-29-2009
04-29-2010
0. its
0. 188
99,906111
111795.14
4-WEEK
10 22 2009
11 19-2009
0.045
0.04E
99.99E500
912795SSI
13 WEEK
10-22-2009
0121401E
E.000
11.001
99929228
917795194
26-WEEK
. 12-2001
04-22 -2010
0. 110
O.173
99 91405E
9122951110
52 WEEK
1022-2009
1021 Q010
0325
0,381
99.020833
912296UII3
4WEEK
10 15-2009
1112-2009
0.050
0.051
19 99611,
912295Q38
13 WEEK
10 is 2009
01-14. 2010
0. E20
U.E71
99 982306
91279SR86
26WEEK
10-15. 2009
04-15 2010
11.liU
O,152
99.924162
912295UM1
16-DAY
10-13 20E9
1E 491009
0040
0.041
99.998212
91279SPI6
4 WEEK
10-08-2009
11-05-2009
0.040
OA41
99.996889
912795Q20
13-WkEK
tO-06-2009
OI-UY-2010
0.025
0.02ti
99.981042
91229SR20
26-WEEK
10-08-2009
04-08-2010
0. 150
0,152
99.92416/
Y12795IJ33
4-WELK
10-01-2009
10-29-2UU9
0.040
0,041
99.996839
91279SE)b
13-WEEK
10-01-2009
12 d1-2009
0. 115
Dill
99.970931
912295160
26-WF.E.K.
10-01-2009
04-01-2010
0,190
0.193
99,903944
912795U1-3
4-WHK
09-24-2009
10-22-2009
0,040
0.041
99.996889
912795544
13-WEE1i
09-24-2009
]2-24-2009
O"if,
0. 101
99.974722
9122951A52
26-WEEK
09-24-2009
03-25-2010
0,190
0. 193
99.903944
912295T84
52 WEEK
09-24-2009
09 23-2010
0.405
0,112
99 590590
912795U90
4-WEEK
09-12-2009
10-IS-2009
0,030
0.030
11 997E62
912795V20
13-WEEK
09-12 2009
12-12-2809
1'111
0.137
99.91,502E
912295569
Effective with the 11/2/98 auction, all hills are auctioned using the single -priced method
�reuav llf,,m111E Ail 1 law s, 1u deivcc I.r-cy uE9ai NW cesIWA Tns,8(iiii 16essln pry 10a11 Q00U1v
05. 0-1'.enevl of lh1,T n, Hu,Aao (I II 41mt-IM
4
http://www.treasurydirect.gov/RI/OFBills 12/1/2009
PKB: H.15--Selected Interest Kates, Web -Only Daily Update --November 27, 2009
Page 1 of 3
FEDERAL RESERVE STATISTICAL RELEASE
H.15 DAILY UPDATE: WEB RELEASE ONLY
SELECTED INTEREST RATES
For use at 4:15 p.m. Eastern Time
Yields in percent per annum
November
27,
2009
2009
2009
2009
2009
Instruments
Nov
Nov
Nov
Nov
23
24
25
26*
Federal funds (effective) 1 2 3
0.12
0.12
0.11
0.11
Commercial Paper 3 4 5 6
Nonfinancial
1-month
0.14
0.11
0.15
2-month
0.12
n.a.
n.a.
3-month
0.14
n.a.
n.a.
Financial
1-month
0.15
0.14
0.15
2-month
0.16
0.15
0.13
3-month
0.17
0.19
0.19
3-month nonfinancial or financial
posted by CPFF 7
Without surcharge
1.13
1.13
1.13
With surcharge
2.13
2.13
2.13
CDs (secondary market) 3 8
1-month
0.18
0.17
0.17
3-month
0.21
0.20
0.20
6-month
0.28
0.27
0.27
Eurodollar deposits (London) 3 9
1-month
0.30
0.30
0.30
3-month
0.45
0.45
0.45
6-month
0.65
0.65
0.65
Bank prime loan 2 3 10
3.25
3.25
3.25
3.25
Discount window primary credit 2 11
0.50
0.50
0.50
0.50
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
0.05
0.06
0.07
3-month
0.05
0.05
0.05
6-month
0.14
0.14
0.14
1-year
0.28
0.27
0.25
Treasury constant maturities
Nominal 12
1-month
0.05
0.06
0.07
3-month
0.05
0.05
0.05
6-month
0.14
0.14
0.14
1-year
0.29
0.28
0.26
2-year
0.77
0.73
0.73
3-year
1.28
1.22
1.23
5-year
2.20
2.15
2.11
7-year
2.90
2.82
2.78
10-year
3.37
3.32
3.28
20-year
4.20
4.16
4.12
30-year
4.29
4.25
4.23
hftp://www.federalreserve.gov/Releases/Hl 5/update/
Federal Reserve Statistical Release
H.15 *f
Selected Interest Rates (Daily)
54ip m Camcm
Release Date: November 27, 2009
Weekly release dates I Historical data I Data Download Program (DDP) I About I Announcements
Daily update Otherformats: Semen reader I ASCII
11111 P ugra�m toaE
The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday
through Friday on this site. If Monday is a holiday, the weekly release will be posted on Tuesday
after the holiday and the daily update will not be posted on that Tuesday.
12/1/2009 5
FRB: H.15--Selected Interest Kates, Web -Only Daily Update --November 2 /, 2UU9
rage 2 of s
Inflation indexed 13
5-year
0.38
0.34
0.30
7-year
0.75
0.74
0.69
10-year
1.20
1.21
1.16
20-year
1.84
1.82
1.78
Inflation -indexed long-term average 14
1.81
1.80
1.76
Interest rate swaps 15
1-year
0.45
0.45
0.45
2-year
1.06
1.04
1.03
3-year
1.66
1.63
1.61
4-year
2.13
2.10
2.07
5-year
2.50
2.47
2.43
7-year
3.03
3.00
2.96
10-year
3.49
3.45
3.42
30-year
4.19
4.16
4.14
Corporate bonds
Moody's seasoned
Aaa 16
5.11
5.OB
n.a.
Has
6.29
6.25
n.a.
State & local bonds 17
4.33
Conventional mortgages 18
4.78
Markets closed.
n.a. Not available.
-----------------------------------------------------------------------
Footnotes
1. The daily effective federal funds rate is a weighted average of rates on brokered trades.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly
figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. On a discount basis.
5. Interest rates interpolated from data on certain commercial paper trades settled by The
Depository Trust Company. The trades represent sales of commercial paper by dealers or direct
issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are equivalent to the
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 Program is not
excluded from relevant indexes, nor is any financial or nonfinancial commercial paper that may be
directly or indirectly affected by one or more of the Federal Reserve's liquidity facilities. Thus
the rates published after September 19, 2008, likely reflect the direct or indirect effects of the
new temporary programs and, accordingly, likely are not comparable for some purposes to rates
published prior to that period.
7. CPFF refers to the Federal Reserve's Commercial Paper Funding Facility. The rates are identical
under the CPFF for financial and nonfinancial commercial paper. An issuer of commercial paper into
the CPFF may avoid the surcharge by providing a collateral arrangement or indorsement that is
acceptable to the Federal Reserve Bank of New York. Source: Federal Reserve Bank of New York.
8. An average of dealer bid rates on nationally traded certificates of deposit.
9. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time.
10. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered
commercial banks. Prime is one of several base rates used by banks to price short-term business
loans.
11. The rate charged for discounts made and advances extended under the Federal Reserve's primary
credit discount window program, which became effective January 9, 2003. This rate replaces that for
adjustment credit, which was discontinued after January 8, 2003. For further information, see
www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate reported is that
for the Federal Reserve Bank of New York. Historical series for the rate on adjustment credit as
well as the rate on primary credit are available at www.federalreserve.gov/releases/hl5/data.htm.
12. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The
30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced
http://www.federalreserve.gov/Releases/H15/update/ 12/1/2009 6
FRB: H.15--Selected Interest Kates, Web -Only llally Update --November 21, 2UU9 Yage .5 of S
on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasury published a
factor for adjusting the daily nominal 20-year constant maturity in order to estimate a 30-yeas
nominal rate. The historical adjustment factor can be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/Itcompositeindex_historical.shtml.
Source: U.S. Treasury.
13. Yields on Treasury inflation protected securities (TIPS) adjusted to constant maturities.
Source: U.S. Treasury. Additional information on both nominal and inflation -indexed yields may be
found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html.
14. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of
more than 10 years.
15. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap rates. Rates are
for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected
at 11:00 a.m. Eastern time by Garbed Intercapital plc and published on Reuters Page ISDAFIX(R)1.
ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited.
16. Moody's Asa rates through December 6, 2001, are averages of Aaa utility and Asa industrial bond
rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only.
17. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations.
18. Contract interest rates on commitments for fixed-rate first mortgages. Source: Primary Mortgage
Market Survey(R) data provided by Freddie Mac.
Note: Weekly and monthly figures on this release, as well as annual figures available on the
Board's historical H.15 web site (see below), are averages of business days unless otherwise noted.
Current and historical H.15 data are available on the Federal Reserve Board's web site
(www.federalreserve.gov/). For information about individual copies or subscriptions, contact
Publications Services at the Federal Reserve Board (phone 202-452-3299, fax 202-728-5886). For paid
electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 202-482-1966.
----------------------------------------------------------------------------------------------------
Description of the Treasury Nominal and Inflation -Indexed Constant Maturity Series
Yields on Treasury nominal securities at "constant maturity" are interpolated by the U.S. Treasury
from the daily yield curve for non -inflation -indexed Treasury securities. This curve, which relates
the yield on a security to its time to maturity, is based on the closing market bid yields on
actively traded Treasury securities in the over-the-counter market. These market yields are
calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The
constant maturity yield values are read from the yield curve at fixed maturities, currently 1, 3,
and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a 10-year
maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity.
Similarly, yields on inflation -indexed securities at "constant maturity" are interpolated from the
daily yield curve for Treasury inflation protected securities in the over-the-counter market. The
inflation -indexed constant maturity yields are read from this yield curve at fixed maturities,
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
L ome I Ecemomic research and data
Accesvbihp I Contact Us
Last update: November 27, 2009
7
http://www.federalreserve.gov/Releases/H 15/update/ 12/1 /2009
t,Kb: commerciai raper Kates anal vutstanatngs
rage t or
Federal Reserve Release
Commercial Paper
Release I _About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution I Data
Download Program (DDP)
Data as of November 30, 2009
Commercial Paper Rates and Outstanding
Derived from data supplied by The Depository Trust & Clearing Corporation
Posted December 1, 2009
Discount rates
FTerm]nonfinancial
AA
A2/P2
nonfinancial
AA
financial
AA
asset -backed
1-day
0.15
0.22
0.13
0.30
7-day
0.10
0.27
0.13
0.47
15-day
0.14
0.26
0.15
0.41
30-day
0.13
0.28
0.15
0.45
60-day
0.11
0.40
0.17
0.21
90-day
0.14
n.a.
0.19
0.26
Trade data insufficient to support calculation of the 90-day A2/P2 nonfinancial rate for November 30, 2009.
Yield curve
Money market basis Percent
— — — AA mmfin:nvial
..^'..... A2/P2 nonfinancial
--.— AA financial
frA
;•�.—.„... v
�e---.— — — — -- .,--vim
e
e
1 7 15 30
Days to Maturity
M
M,
0.75
0.50
0.25
0.00
http://www.federalreserve.gov/Reieases/CP/ 12/1/2009 8
NKB: Uommercial Paper Kates and Uutstanclings
Page L of J
Discount rate spread
tinny-aay ALirc less AA numinanciai conmtcreun paper taanyt Mists
2001 2002 2003 2004 2005 2006 2007 2008 2009
Discount rate history
commercfaf paper mauy7 rcrcent
— — AA wnfimiiwi:d
- A2fP2 nonPn indal
'— to On mci.fl
2001 2002 2003 2004 2005 2006 2007 2008 2009
Outstandings
Weekly (Wednesday), seasonally adjusted
800
700
600
500
400
300
200
100
0
9
http://www.federalreserve.gov/Releases/CP/ 12/1/2009
FRB: Commercial Paper Rates and Outstandings
Page J of 3
1210
1110
1010
910
810
710
610
510
410
Billions of dollars
Billions of dollars
290
wtl4 210
I`ht t , lAl. Y 170
d. r'V, 130
2001 2002 2003 2004 2005 2006 2007 2008 2009
The daily commercial paper release will usually be available before 11:OOam EST. However, the Federal
Reserve Board makes no guarantee regarding the timing of the daily commercial paper release. When the
Federal Reserve Board is closed on a business day, rates for the previous business day will be available
through the Federal Reserve Board's Data Download Program (DDP). This policy is subject to change at
any time without notice.
Release I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution I Data
Download Program. (DDP)
Home I Statistical releases
Accessibility Contact Us
Last update: December 1, 2009
10
http://www.federaireserve.gov/Releases/CP/ 12/1/2009
City of La Quints
Cash Film
Budget to Actual
October 31, 2009
Cash Basis
Account
Budget
10/09
Actual
10109
Accrual /
Adjustment
. Adjusted TotalME
10109
Notes
Property Tax/ Tax Increment
Transient Occupancy Tax
Sales Tax
SilverRock Golf
Library
-
200,534
421.313
103,110
238
227,919
182.087
308,200
73,624
-
227,919
182.0877)
308.200)
73,624)
)
Rec'd Supplements( Property Tau
Decline in Sales Tax due a economy
Riversitle Co Transportation Commission
281,470
281.470
Reed Brant revenue reimbursement for Hwy
111 Improvements
Recorded quarterly fire service credit $1.1m1
Other revenues
Revenues
1412,5]3
2,137,768
2852,2%
3,925,5%
2 852 296
3,925,596
1 439 723
1,787,828
reed quarterly cable franchise fe$171k.
recorded $1931, revenue for fire service
Expenditures
Salaries B Fringe Behefts
1,090,576
1.162,157
1,162,157
71,581
Additional invoice Police $1.3m; $543k City
Other expenditures
Subtotal
2110979
5109789
5109789
2998810
Hall tlebt service payment; quarterly Fire
Sei Costs$1.1m
3201555
6271946
6271,946
3070391
440,507
766.234
373,476
766234
373,476
766234
(67,030)
Redevelopment Agency
Debt Service (PnncipaVlnterml/Pass Through)
Subtotal
7,:1 '
1 139710
-
1139 7.12
67.030
908,581
908581
908581
Capital Projects
Total Ex snditures
5,316.877
8,320,237 1
8,320,237
3003,360
Net RBVenue6/Expendltures -
3,179,109
4,39
4,3%,841
4,791,189
NOTE 1:
Expenditures are budgeted at 8.34% per month
Difference between actual and budget
(Underspent)
DEPARTMENT
Overspent
Notes
GENERAL GOVERNMENT
CITY CLERK
233,751
8,186
Pad quarterly payment ro Chamber 381k;Palm Springs Convention$14%
-
COMMUNITY SERVICES
80.842
"
FINANCE
7.428
BUILDING B SAFETY
609,039
$5431,(ur rent for City Hall
PUBLIC SAFETY
1,801,130
Paid for 2 rondo Invoices
PLANNING
(46,233)
PUBLIC WORKS:
54,282
SUBTOTAL -GENERAL FUND
2748425
Library
Gas Tax
Federal Assistance
JAG Grant
Slesf (Cops) Revenue
Indian Gaming
Lighting 6 Landscaping
RCTC
Development Agreement
CV Violent Crime Task Force
AS 939
Quimby
Infrastructure
Proposition I
South Coast Air Quality
3,824
Transportation
Parks 8 Recreation
Civic Center
Library Development
Community Center
Street Facility
Park Facility
-
Fire Protection
Arts In Public Places
(3,341)
Interest Allocation
Equipment Replacement
(30,423)
Information Technology -
(14,335)
Park Maintenance Facility
(31,603)
SllverROG Golf
(31,606)
SilverRock Reserve
-
LQ Public Safety Officer
(167)
Finance Authority
(1,316)
Capital Improvement
Total r
2,629,883
17
INVESTMENT ADVISORY BOARD
Meeting Date: December 9, 2009
TITLE:
Pooled Money Investment Board Report
for September 2009
BACKGROUND:
Correspondence
& Written Material Item C
The Pooled Money Investment Board Report for September 2009 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
6 John M. Falconer, Finance Director
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF SEPTEMBER 2009 WITH SEPTEMBER 2008
(DOLLARS IN THOUSANDS)
SEPTEMBER 2009 SEPTEMBER 2008' CHANGE
Average Daily Portfolio
$
61,118,055
$
65,286,969
$
-4,168,914
Accrued Earnings
$
37,700
$
148,862
$
-111,162
Effective Yield
0.750
%
2.774
%
-2.024 %
Average Life -Month End (In Days)
234
214
+20
Total Security Transactions
Amount
$
28,698,114
$
46,707,550
$
-18,009,436
Number
586
959
-374
Total Time Deposit Transactions
Amount
$
2,675,000
$
3,172,000
$
-497,000
Number
115
161
-46
Average Workday Investment Activity
$
1,493,968
$
2,375,217
$
-881,259
Prescribed Demand Account Balances
For Services
$
1,045,464
$
774,191
$
+271,273
For Uncollected Funds
$
133,703
$
176,283
$
-42,680
NOW Account Average Balance
$
1,470,333
$
0
$
+1,470,333
1
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
September 30, 2009
DIFFERENCE IN
PERCENT OF
PERCENT OF PORTFOLIO FROM
TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH
Government
Bills $ 16,433,924 26.56 +4.98
Bonds 0 0.00 0
Notes 5,322,702 8.60 +2.90
Strips 0 0.00 0
Total Government $ 21,756,626 35.16 +7.88
Federal Agency Debentures
$ 5,348,431
8.64
-0.08
Certificates of Deposit
4,050,028
6.54
-3.45
Bank Notes
0
0.00
0
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
8,332,100
13.46
+4.44
Time Deposits
5,307,700
8.58
+0.01
GNMAs
118
0.00
0
Commercial Paper
6,620,727
10.70
-3.04
FHLMC/Remics
943,907
1.53
-0.01
Corporate Bonds
214,047
0.35
-0.10
AB 55 Loans
2,290,874
3.70
-3.38
GF Loans
3,526,000
5.70
-5.96
NOW Accounts
3,192,000
5.16
+3.69
Other
300,000
0.48
0
Reversed Repurchases
0
0.00
0
Total (All Types)
$ 61,882,558
100.00
INVESTMENT ACTIVITY
SEPTEMBER 2009
AUGUST
2009
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
585
$ 28,698,114
586
$ 28,886,787
Other
16
129,503
6
191,954
Time Deposits
115
2,675,000
102
2,608,000
Totals
716
$ 31,502,617
694
$ 31,686,741
PMIA Monthly Average Effective Yield
0.750
0.925
Year to Date Yield Last Day of Month
0.902
0.977
Pooled Money Investment Account
Portfolio Composition
$61.9 Billion
Loans
Corporate Bonds 9.40%
Commercial Par
10.70%
NOW Accounts
5.16%
Time Deposits
8.58%
C
09/30/09
Agencies
22.58%
Treasuries
35.16%
ages
i%
INVESTMENT ADVISORY BOARD
Meeting Date: December 9, 2009
ITEM TITLE:
October 27, 2009 Joint Meeting Minutes
with the City Council
BACKGROUND:
Correspondence & Written
Material Item D
The minutes from the joint meeting with the City Council were approved at the
November 17" 2009 City Council meeting and are attached.
RECOMMENDATION:
Information item only.
John M. Falconer, Finance Director
r ,
Joint City Council/Commission Meeting 9
November 17, 2009
y app'cations for annexation within the
through LAFCO for historic viabil' ° influence are processed
Chairperson Redm ourned the Historic Preservation Commission meeting
meet in joint session with the Investment Advisory Boardonvened it at 7:09 p.m. to
1-C. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND INVESTMENT ADVISORY BOARD.
Chairman Ross called the Investment Advisory Board meeting to order.
PRESENT: Board Members Olander, Rassi, and Chairman Ross
ABSENT: Board Members Moulin and Park
LAW Investment
In-- v ent
Chairman Ross reported on the LAW Conference he recently attended with
Finance Director Falconer. Finance Director Falconer reported the $25 billion
investment funds could not be borrowed against by the State. ,
i
In response to Council Member Henderson, Finance Director Falconer
explained the entire investment pool is $60 billion, which fluctuates day to
day, and LAW was giving loans as much as 40% of the investment pool.
Chairman Ross stated the investment pool is very well managed and funded,
but at some point the pool will lag at some point if the interest rate go up.
Council Member Henderson asked what percentage of the City's investment
portfolio is invested in the LAW pool. Finance Director Falconer stated the
City invests 28-30% of the entire investment portfolio in LAIF.
Council Member Sniff asked what types of investments LAW makes.
Chairman Ross stated they invest in bank CDs and treasury bills, and
continue to invest in Federal government agency issues, but not as much as
they used to; and have reduced investing in the corporate commercial
program and have been advised that three issuers, Johnson & Johnson,
Microsoft and Exxon Mobile, have been cited with AAA standing.
Council Member Evans asked if any information was given on the future of
investments in the current economy. Chairman Ross stated the presence at
the annual conference was good forum to be in contact with LAW as part of
/ the ongoing review of the investments. Finance Director Falconer explained
r
Joint City Council/Commission Meeting 10
November 17, 2009
the investment cycle and how LAIF interest rates usually lag the market
when interest rates decrease and lag the market when interest rates increase
based upon the average maturity of the pool.
Certificate of Depository Account
Chairman Ross explained sometimes the investment of LAIF is not
appropriate place to earn interest and reviewed other investment sources
such as CalTrust and the Certificate of Deposits of Account Registry Service
(CDARS) Programs.
Council Member Henderson asked how the Board feels about money market
and mutual funds investment. Chairman Ross explained one of the funds
utilized currently at Wells Fargo Bank is most likely an acceptable alternative.
Council Member Sniff stated short -time interest rates are not much different
than long-term investment rates. Chairman Ross confirmed. Council
Member Sniff asked what the Board's perception of the economy is in the
next year. Board Member Olander stated based on what is currently
transpiring we must try to create jobs; as the dollar is falling, the question is
we are flooding the world with our currency and causing problems for the
future; alternatives are commodities and gold; the possibility exists that in
the future other countries are looking at not using the American dollar for oil
transactions; the government is spending out of control; the key factor is to
get the. value of the dollar up; supply and demands holds for currencies as
well as goods; suggested looking at 10-year treasuries as they are yielding
3.5 %.
Council Member Sniff asked if there would be any point to invest a modest
amount in gold or silver. Board Member Olander stated there is a lot of risk
in these precious metals that are similar to real estate.
Board Member Rassi stated the market is volatile and unsafe. Council
Member Henderson asked if investing in commodities is a violation of the
City's Investment Policy. Board Member Rassi stated that is correct.
Chairman Ross further stated going beyond the policy and reporting losses to
the public is embarrassing.
Chairman Ross stated the Board reviews the Investment Policy annually and
will take a formal review and make recommendations to the City Council.
In response to Council Member Franklin, Finance Director Falconer explained
the Certificate of Deposits of Account Registry Service (CDARS) Program
stating that it is a way to obtain Federal Deposit Insurance Corporation
t
Joint City Council/Commission Meeting 11
November 17, 2009
r�)
(FDIC) coverage in an easier fashion by investing with one bank rather then
by investing in individual banks.
Council Member Henderson asked if staff is recommending the program.
Finance Director Falconer stated staff is reviewing this program and the
Board will discuss the possibility of investing in the program 'sometime in
January.
Chairman Ross the program has been institutionalized and may be worth
looking into investing.
Council Member Franklin asked if the FDIC insured limit goes back down, are
we okay. Finance Director Falconer explained the City's CDs mature every
year in June and all of the City's investment CDs are under the current
$250,000 limitation. He went on to state that he would take the temporary
FDIC limit increase to $250,000 into consideration when reinvesting to not
exceed whatever FDIC coverage was in effect
Chairman Ross stated the Board is appreciative of the City Council's support
and working with very capable staff, and the Commission is open to any
suggestions from the City Council.
Chairman Ross adjourned the Investment Advisory Board meeting.
3h recessed the
joint session with
Council meeting and reconvened it at 7:45 p.m. to
1-D. DISCUSSI OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL COMMUNITY SERVICES COMMISSION.
Chairman Spirtos called t Community Services Commission meeting to
order.
PRESENT: Commissioners Brodsky, Fitz rick, Lawrence, Leidner, and
Chairman Spirtos
ABSENT: Commissioners Biegel, Darroch
Chairman Spirtos stated the Commission feels it is an honor t-6 s t the
i
BOARD MEMBER ITEMS