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2010 12 08 IABi P.O. Box 1504 LA Qu)N-rA, G%i,iFOeu)A 92247-1504 78-495 Gni.Lr: TAmt,ico (760) 777-7000 LA QUIN IA, CALIFORNIA 92253 FAX (760) 777-7101 AGENDA INVESTMENT ADVISORY BOARD Caucus Room 78-495 Calle Tampico- La Quinta, CA 92253 December 8, 2010 - 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 10, 2010 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for October, 2010 VI CORRESPONDENCE AND WRITTEN MATERIAL A. City of La Quinta FY 09/10 Audited Financial Statements B. Month End Cash Report — November, 2010 C. Pooled Money Investment Board Report — September, 2010 D. November 9, 2010 Joint Meeting Minutes with the City Council VII BOARD MEMBER ITEMS VIII ADJOURNMENT PUBLIC NOTICES The La Quints Caucus 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 Calls Tampico, La Quints, CA 92253, during normal business hours. s INVESTMENT ADVISORY BOARD MEETING November 10, 2010 CALL TO ORDER A regular meeting of the Investment Advisory Board was called to order at 4:00 p.m. by Chairman Park followed by the Pledge of Allegiance. PRESENT: Board Members Mortenson, Park, Spirtos and Rassi ABSENT: Board Member Blum STAFF PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior Secretary II. PUBLIC COMMENT - III. CONFIRMATION OF AGENDA - Confirmed IV. CONSENT CALENDAR A. Approval of Minutes of Meeting on October 13, 2010 for the Investment Advisory Board Board Member Mortenson requested that the following correction be made to page 2, tenth paragraph; In response to Board Member Mortenson, Mr. Falconer advised that due to the fact that the policy states that the maximum maturity can only be extended fires three to five years, [...] MOTION — It was moved by Board Members Spirtos/Mortensen to approve the minutes of October 13, 2010 as amended. Motion carried unanimously. V. BUSINESS SESSION A. Transmittal of Treasury Report for September 2010 Mr. Falconer presented and reviewed the staff report for the month of September, advising the Board that the portfolio decreased by $12.18 million ending the month at $151.34 million. The decrease in the portfolio was due to the following: the semi annual debt service payment of $11.2 million, the Capital Improvement payments of $1.29 million, and the notable payments for the Adams Street Bridge at $374,000, the Cove Fire Station at $287,000 and the Laguna de la Paz Sound wall at $154,000. Mr. Falconer further advised that page 7 reflects the reinvestment of a $10 million T-Bill with the new rate at .19% and the old rate .18%, and a slight increase in the portfolio yield at .55% and previous year's yield at .53%. In response to Board Member Mortenson, Mr. Falconer advised that page 4 VI. Correspondence and Written Material, Item A., reflects the current yields (i.e. three month, six month, etc...). Further discussion ensued amongst the Board and staff in reference to the possibility of extending the yield curve out further. In response to Board Member Spirtos, Mr. Falconer advised that on page 3 "Cash Balances," the payments listed are recurring payments and not final payments. He further advised that the payments represent eight to ten bond issues with two assessments districts due to mature in approximately five years. Mr. Falconer advised the Board that Ambac who insured several of the RDA bond issues declared bankruptcy. Due to the current status of Ambac, the City will be preparing the annual disclosures to the appropriate regulatory agencies, which is part of the City's due diligence. This item will be presented to the City Council the second meeting of December. General discussion ensued amongst the Board and staff regarding Ambac and their current lawsuit against the Internal Revenue Service. MOTION — It was moved Board Members Mortenson/Spirtos to review, receive, and file the Treasurers Report for September 2010. Motion carried unanimously. VI. CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report — October 2010 Mr. Falconer presented and reviewed the Month -End Cash Report advising the Board of several transactions reflected on page 2 for the 2 month of October. One of the transactions involves transferring available monies into LAIF. Mr. Falconer summarized for the Board the process of the investments and specific transactions. In addition, he advised the Board that due to the reduced amount of cash in the portfolio in the month of October, the November Treasurers Report will possibly reflect over 10% being held in medium term notes. In response to Board Member Spirtos, Mr. Falconer advised that the "Notes" column on page 12 stated that the gas tax was not received, due to the states budget crisis and will be remitted later in the year. Noted and Filed B. Pooled Money Investment Board Reports — August 2010 and LAIF Conference Materials Mr. Falconer advised that LAIF's current portfolio balance is $4 billion more than it was in the previous year with the average life remaining the same and the yields half of what they were. Mr. Falconer commented that it appears that the state is currently investing more in U.S. Treasury Securities at this time. General discussion ensued amongst the Board and staff regarding the LAIF Conference and conference materials. Noted and Filed VII. BOARD MEMBER ITEMS - None Vill. ADJOURNMENT It was moved by Board Members Mortenson/Spirtos to adjourn the Investment Advisory Board meeting at 4:49 p.m. Motion carried unanimously. Senior Secretary 3 INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: December 8, 2010 ITEM TITLE: Transmittal of Treasury Report for October 31, 2010 BACKGROUND: Attached please find the Treasury Report October 31, 2010. RECOMMENDATION: Review, Receive and File the Treasury Report for October 31, 2010. John M. FalcoJJlJJner, Finance Director MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for October 31, 2010 DATE: November 30, 2010 Attached is the Treasurer's Report for the month ending October 31, 2010, 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 Beginning Purchased Notes Sold/Matured Other Endin Chan e LAIF $ 46,914,612 $ 59,042 $ (3,200,000) 350,001 $ 44,123,655 (2,790.957) Certificates of Deposit 969,000 18,069 969,000 87,984.998 0 18,069 US Treasuries 87,966,929 (2) 0 0 0 US Gov'tSponsored Enterprises (2) 0 0 0 Commercial Paper 15,143,378 (2) (2) (12,178) 15,131,200 (12,178) Corporate Notes 1 0 581.796 0 Mutual Funds $ 581,796 151,575,715 $ 59,042 $ 3,200,000 1$ 355,892 1$ 148,790,649 1 $ 2,785,066 Subtotal Cash $ 240,460 $ 722,339 1 & 3 $ 481,879 722,339 $ 151,335,255 $ 781,381 $ 3,200,000 $ 355,892 $ 149,272,528 $ 2,062,727 Total I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quints 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. AP /1/3012-0�� Date John M. Falconer Finance Director/Freasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the month on US Treasury, Commercial Paper and Agency investments. (3) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. FA Treasurer's Commentary For the Month of October 2010 Cash Balances — The portfolio size decreased by $2.1 million to end the month at $149.27 million. The major reason for the decrease was payments to the Riverside County Sherriff of $836,000, semi annual debt service payments of $552,090 for the City Hall Bond issue, and payments of $424,000 for Capital Projects. Investment Activity — The investment activity resulted in an average maturity decrease of 19 days from the prior month to end the month of October at 88 days. The Treasurer follows a buy and hold investment policy with no investment purchased made during the month of October. The sweep account earned $13 in interest income for the month of October and the bank fees for the month were $ 1,837 which resulted in a net decrease of $1,824 in real savings. Portfolio Performance — The overall portfolio performance had no change from the prior month and ended at .51 % for the month, with the pooled cash investments at .55%. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding .50% which reflects the current interest rate environment. Looking Ahead 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 Fannie Mae or Freddie Mac Goveimment Sponsored Enterprises (GSE) due to the current economic conditions affecting the financial markets. 3 E E E FO N E > C N O 0 0 0 m m 0 m m ° z z z z z z z O z X W N m N 0.E n moa 0 m w O N N c O C C LL m C O N W LD p � a 2 `m m U LL LL C N qg d > m c N 0 a p, C N N E 7 N d m m a m T T a 0 0 y c m N CL" m m C N N 3 O O O O O y V 0 j N y� j O on T N Oa N oEEEEE O O O O O O o O om O N �»>N o N c E f O O U n 5 pqp o .E w w w w w o o �O U m O O u E w E K w v 00000 o C, ci 00000 V O CJ O 00 M N m O O� LL 2 N N O d 0 0 0 0 000 N \^ \ e 0.0 0 0 p \ \ o 9 m J in °v\i m °' °m' o o 0 0 0 0 � 0 0 c°ii LL - V o O O O O o0ho of N o 0 Q Q N o 0 0 S o 0 0 0R N E J E e 8 e O �Q0�Q pp 00 O ry N O p O O O O O g 'O p p p V1 N N Ola � m O � L� 0 S? 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0,26% 0.46% 1 0% 0.24% 0.93% Sept 2W9 0.56% 0.31% 053% 112 0,12% 0.19% 0.41% lw% 0.19% 0.75% Oct 2009 0.52% 0.31% 0.50% 90 0.08% 0,19% 038% 1.00% 0.19% 0.65% Nov 2009 0.56% 031% 0.53% 152 0.04% 0,14% 0.32% 0.75% 0.15% 0.61% Dec 2009 0.56% OA6% 0.51% 239 0.11% 0,20% 0.16% 1,00% 0.16% 057% Jan 2010 046% 0.15% 0.43% 179 006% 014% 0.34% 088% 0,13% ON% Feb 2010 0.51% 0.16% 0.48% 162 0.13% OA9% 0.32% 0.88% 0,15% ON% Mar2010 0.50% OA8% 0.47% 172 0.15% 024% 0,38% 100% 0.20% 0,55% Apr2010 0,52% 0,16% 0,48% M2 0,15% 0.24% 0,49% 1.00% 0,23% 0.59% May201O 0.52% 0.16% 0,48% 116 0.17% 0.22% 0,37% 075% 0.28% 0.56% June 2010 0.55% 0,15% 0.51% 134 0.16% 0,22% 032% 0.63% 0.32% 053% FY 10/11 July 2010 0.50% 0,15% 0.47% 119 0.16% 0.20% 0.30% 0.63% 0.28% 053% August 2010 0.49% 0.15% 0.46% 108 0.15% 0.19% 026% O.N% 0.25% 0.51% Sept 2010 0.55% 0,15% 0.51% 107 0,16% 0.19% 0.27% 0.38% 0,24% 0.50% 10 � I I I I I I I I � i II 1 1 1 1 1 1 I I O t (( { - i I I I I I I I O I I I 1 � ' i � I I i 1 I � I o I � U �a 1 t o o 0 0 o a o 0 0 U N 0 O 0 0 0 0 0 0 0 T N 1- O W) V d M N O c O O O O O 2 O O O O a 0 co 2 11 INVESTMENT ADVISORY BOARD Meeting Date: December 8, 2010 ITEM TITLE: City of La Quinta Fiscal Year 2009/10 Audited Financial Statement BACKGROUND: Correspondence & Written Material Item A Mr. Bryan Gruber, Manager with Lance Sol] & Lunghard, LLP, CPA's, will review the City Cash and Investments presented in the report and answer Board Members questions. RECOMMENDATION: Information item only. John M. Falconer, Finance Director CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2010 CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2010 Prepared By FINANCE DEPARTMENT JOHN M. FALCONER Director of Finance CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2010 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal .......... ........................................... ...._................................_.......................__.. i List of Principal Officials................................................................................................................. vii Organizational Chart ...................... .. vui Certificate of Achievement for Excellence in Financial Reporting (GFOA)..................................... ix FINANCIAL SECTIO14 IndependentAuditorsReport ........................... ....... ......... .............................. ........ ................ ............. -A Management's Discussion and Analysis....... _...._...........__.__....._.._..._...—................. ... .................. 3 Basic Financial Statements: Government -Wide Financial Statements: Statementof Net Assets ......... .................... ...._..... .... _.................. .._.......... ._................... ...... ..17 Statementof Activities......_ ............... ......_...._._........................ ....................... ........ ................... 18 Fund Financial Statements: Balance Sheet — Governmental Funds...........................................................................................20 Reconciliation of the Balance Sheet of Governmental Funds tothe Statement of Net Assets.......................................................................................................23 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds...................................................................................................24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................26 Budgetary Comparison Statement by Department — General Fund..............................................27 Statement of Net Assets — Proprietary Funds................................................................................28 Statement of Revenues, Expenses and Changes in Fund Net Assets — ProprietaryFunds ..... ............................. .._........................ ...... .......... ....... ......._....... ....................29 Statement of Cash Flows — Proprietary Funds ......... ...................................................... --- ......... 30 Statement of Fiduciary Net Assets - Fiduciary Funds....................................................................32 Notes to Financial Statements.. ............................................................... ............................... ....... 33 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2010 TABLE OF CONTENTS (Continued) Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Non -Major Governmental Funds.......................................................76 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non -Major Governmental Funds. ............. ........................................................ 86 Budgetary Comparison Schedules — Special Revenue Funds StateGas Tax.........................................................................................................................95 Library..................................................... .......... ....... ............ ................................................... 96 FederalAssistance...................................................................................................................97 SLEBG.....................................................................................................................................98 IndianGaming..........................................................................................................................99 Lightingand Landscape.........................................................................................................100 RCTC.....................................................................................................................................101 Quimby...................................................................................................................................102 Congestion Management Air Quality Fund............................................................................103 PublicSafety ..........................................................................................................................104 ArtsIn Public Places .................................... ........ :................................................................. 105 South Coast Air Quality..........................................................................................................106 AB939....................................................................................................................................107 CV Violent Crime Task Force................................................................................................108 Proposition1 B Fund...............................................................................................................109 Justice Assistance Grant........................................................................................................110 HousingAuthority PA No. 1...................................................................................................111 HousingAuthority PA No. 2..................... ............... ...................... :........................................ 112 Low/Moderate Income Housing PA No. 1.............................................................................113 Low/Moderate Income Housing PA No. 2.............................................................................114 Budgetary Comparison Schedules — Capital Projects Funds CapitalImprovement.........................................................................................................115 Infrastructure.........................................................................................................................116 Transportation.......................................................................................................................117 Parks and Recreation...........................................................................................................118 CivicCenter..........................................................................................................................119 LibraryDevelopment.....................................................................................................120 CommunityCenter................................................................................................................121 StreetFacility........................................................................................................................122 ParkFacility..........................................................................................................................123 FireFacility...........................................................................................................................124 2004 Low/Mod Bond.............................................................................................................125 Redevelopment Agency PA No. 1 — Capital Projects..........................................................126 Redevelopment Agency PA No. 2 — Capital Projects..........................................................127 Budgetary Comparison Schedules — Debt Service Funds Financing Authority — Debt Service........................................................................................128 Redevelopment Agency PA No. 1 — Debt Service.................................................................129 Redevelopment Agency PA No. 2 — Debt Service... ....... _ .................................................... 130 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2010 TABLE OF CONTENTS (Continued) Page Number Combining Statement of Net Assets — Internal Service Funds....................................................132 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets — Internal Service Funds...............................................................................133 Combining Statement of Cash Flows — Internal Service Funds ................ .................. ...............134 Combining Balance Sheet —AII Agency Funds ....................... ......................._......_......... ...._..... 136 Combining Statement of Changes in Assets and Liabilities — All Agency Funds....... _............_..137 STATISTICAL SECTION NetAssets by Component .... ........ ..............._......_......._................._......._........._..................._.140 Changesin Net Assets .......... __..___......................._.................._.._...._.._.._.............__..........141 Changes in Net Assets — Governmental Activities... ...... .....142 Changes in Net Assets — Business -type Activities.......................................................................143 Fund Balances of Governmental Funds ....................... ............ ......_................ .......... ....... _....... 144 Changes in Fund Balances of Governmental Funds....................................................................145 Assessed Value and Estimated Actual Value of Taxable Property ..............................................146 Assessed Value and Estimated Actual Value of Taxable Property - RedevelopmentAgency....................................................................._._._.._..._ ....... ........ _....... 147 Direct and Overlapping Property Tax Rates.................................................................................148 PrincipalProperty Taxpayers......................................................................................................A49 Property Tax Levies and Collections......_ ...... ................... .._............... ....... .......... ...._....... ....... 150 Ratiosof Outstanding Debt by Type............................................................................................151 Ratio of General Bonded Debt Outstanding.................................................................................152 Directand Overlapping Debt ................... ........................... ............ ........................... .......... ._.153 Legal Debt Margin Information ..... ....... ..............._...................................._.................................154 Pledged -Revenue Coverage........................................................................................ 155 Demographic and Economic Statistics.........................................................................................156 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2010 TABLE OF CONTENTS (Continued) PrincipalEmployers... ............................... ................................................................................... 157 Full-time City Employees..............................................................................................................158 OperatingIndicators.....................................................................................................................159 Capital Asset Statistics........................................................................................................... 160 Schedule of Insurance in Force....................................................................................................161 1'.O. Box 150=1 78-195 Cni.i_r: T,\qri(:o ('760) 777-7000 1 :\ Olrl.vr:%. C.�i.iroizm.% 92253 F_AX (760) 777-7101 October 19, 2010 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, 2010. 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, 2010. 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, Financing Authority, Housing 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 2010, the total workforce for the City of La Quinta was 14,600 of which 13,500 were employed for a 7.5% unemployment rate. This rate is significantly lower than the Riverside County unemployment rate of 14.5% and the statewide unemployment rate of 12.2%. During the last ten years, the City of La Quinta has been in a growth phase with net assessed values increasing from $2.68 billion in Fiscal Year 2000-2001 to $11.86 billion (over 442%). This major increase in assessed value consists primarily of residential development; however, in the last ten 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 ben years, the City of La Quinta general fund expenditures have increased 297%. Two Departments that have exceeded the average include and Public Safety (353%) and Community Services (339%). In the case of Public Safety, much of the increase is reflected in increased police service personnel. In the case of Community Services, much of the increase can be attributed to adding library and museum services and park maintenance functions to the Department. During the same ten-year period, the City of La Quinta general fund revenues increased 196%. Sources that exceeded the average include intergovernmental (584%), taxes (191%), and interest earnings (143%). 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 (-77%) and charges for services (-761ib) from the same period ten years ago. These decreases can be attributed to the rapid slow down to development related activities experienced in the City of La Quinta in Fiscal Years 2008-2009 and Fiscal Year 2009-2010. 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 2009-2010 and several large retailers have closed their doors. This has resulted in a reduction in actual tax collections in Fiscal Year 2009-2010 by $900,000. While economists may state that the recession is over, future revenue decline in Fiscal Years 2010-2011 and beyond may be on the horizon given the projected decline in property tax assessment. In Fiscal Years 2008-2009 and 2009- 2010, the City did tighten its fiscal belt at its mid year reviews and will have to continue to monitor and possibly further reduce expenditures in Fiscal Year 2010-2011 given the revenue shortfalls that may continue to occur. Long-term financial planning Each year the City embarks on a strategic planning process which begins in the spring with a discussion of the City Council goals and ends with adoption of the budget in June. The documents that are generated in this strategic planning process include a presentation of the financial achievements for the past fiscal year, a five-year cash flow projection for each City, Redevelopment Agency and Financing Authority fund, and a financial management strategies and recommendation report for the coming fiscal year. Within the financial strategies and recommendation report, a "build out" analysis is included which estimates the annual General Fund revenue (inflows) and expenditures (outflows) in thirty years. This build out analysis is updated every three years based upon future land use designations, existing land use and population projections. This build out report projects that in twenty (20) years, with an estimated population of 81,771 versus the current 44,421, 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 2009-2010, the General Fund balance decreased by $297,000 consisting of revenue decreases primarily in taxes and interest income 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, 2010 was $92.0 million of which $57.9 million versus $46.1 million in Fiscal Year 2008-2009 was nonspendable, $22.3 million versus $23.7 million in Fiscal Year 2008-2009 was committed, $1.5 million versus $3.5 in Fiscal Year 2008-2009 was assigned, and $10.3 million versus $19 million in Fiscal Year 2008-2009 was unassigned. The committed fund balances 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. 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. iv Five -Year Resource Allocation Plan This plan is primarily a planning document that provides a five-year horizon for forecasted operational needs of each department, as well as the City as a whole. This plan is a cyclical review of all operations expenditures to reassess funding mechanisms behind personnel responsibilities and the various service levels of all programs. Annual Budget This document is the annual implementation tool for the overall planning process. The budget will encompass each element of the strategic planning effort and will implement: the goals of the Economic Development Plan; the resource and demand allocation outlined in the Five -Year Resource Allocation Plan; and the capital improvement investment for a given year. Relevant Financial Policies The State of California has mandated in the past that the City of La Quinta, pursuant to State of California Revenue and Taxation Code Section 97.70, contribute $332,000 from the General Fund in 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 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. Maior 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 on the Washington Street Apartment Project to rehabilitate a 73-unit affordable rental housing project. In addition, the Agency has purchased land near the southeast corner of Highway 111 and Dune Palms Road to construct additional affordable Apartment units. The City has a major public facility expansion underway rebuilding Fire Station 32 at its new location at Avenue 52 and Desert Club which is scheduled to open in late 2010. Once completed, this facility, three times the size of the station it is replacing, will better serve the residents of the La Quinta Cove and surrounding areas. In addition, the City is nearing completion of the final design on the Adams Street Bridge which will span the Whitewater Channel and provide an all-weather crossing at this location. v 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. 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, 2009. This was the fourteenth 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 vi City of La Quinta Directory of Officials June 30, 2010 CITY COUNCIL Don Adolph, Mayor Kristy Franklin, Mayor Pro Tern Linda Evans, Council Member Terry Henderson, Council Member Stanley Sniff, 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 Edie Hylton, Community Services Director Kathy Jenson, City Attorney Les Johnson, Planning Director Tim Jonasson, Public Works Director/City Engineer Veronica Montecino, City Clerk vii OPT \ \\\/ -O : - E2=/ \\ \J) ,_ _ Sal, \\Z. \ -E\ \ 2 // E y \\\ st \- \ - OW :- . /aREE _ ,;!!,.!!,! \ _ \� /%§i bu \\�2NE )\ . ! 2 E !eg MOM / + 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, 2009 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. KCf norE� p e$T 1r5 ula (� F i�4U04 \\M . President * e Executive Director THIS PAGE INTENTIONALLY LEFT BLANK x LSEOGG° CERTIFIED PUBLIC ACCOUNTANTS r , • Brandon W. Burrows, CPA • Donald L. Parker, CPA • Michael K. Chu, CPA • David E. Hale, CPA, CFP A Professional Corporation • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F Matz, CPA • Shelly K. Jackley, CPA 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, 2010, 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 misstatements. 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, 2010, and the respective changes in financial position and cash Flows, where applicable, and the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 8, 2010, 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 & Longhand, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 • TEL: 714.672.0022 • Fax: 714.672.0331 WWW.ISICpas.COM 41185 Golden Gate Circle • Suite 103 • Murrieta, CA 92562 • TEL: 951.304.2728 • Fax: 951.304.3940 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. , , .lee, 5V- eG� 0�� October 8, 2010 W 2 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, 2010. 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 $547,995,000 (net assets). Of this amount, $72,324,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The governmental activities total net assets decreased by $15,643,000 and the Business -Type total net assets decreased by $584,000 attributable to the 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 $161,132,000, a decrease of $19,296,000 in comparison with the prior year. • At the end of the current fiscal year, the unassigned General Fund Balance comprised $10,279,000 of the total $92,000,000 General Fund Balance or 11 percent and 24 percent of total General Fund budgeted expenditures. • The City of La Quinta's total debt decreased by $6,645,000 during the current fiscal year from $237,476,000 to $230,831,000 through normally scheduled debt service payments. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of La Quinta's basic financial statements. The City of La Quinta's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 3 Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of La Quinta's finances, in a manner similar to a private - sector business. The statement of net assets presents information on all of the City of La Quinta's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of La Quinta is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of La Quinta that are principally supported by taxes and 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, the La Quinta Financing Authority, and the La Quinta Housing Authority. Although legally separate entities they function for all practical purposes as departments of the City of La Quinta, and therefore have been included as an integral part of the primary government. The government -wide financial statements can be found in the table of contents under the Financial Section of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of La Quinta, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of La Quinta can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 4 Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial 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 eight (38) individual governmental funds, which are distinguished between major and non -major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund bal- ances for the general fund, two (2) debt service funds and three (3) capital project funds. These sip: (6) funds are considered to be major funds. Data from the other thirty two (32) governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of La Quinta adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found in the table of contents under the heading Basic Financial Statements. 5 Proprietary funds Proprietary funds can be broken down into enterprise and internal service funds.. The City of La Quinta maintains one (1) proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of La Quinta uses an enterprise fund to account for its SilverRock Golf Course operations, which is considered to be a major fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of La Quinta's various functions. The City of La Quinta has three (3) internal service funds to account for its major equipment replacement including vehicles, for its information technology systems, and for its park equipment and facility needs. Because these three services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report The basic proprietary fund financial statements can be found on the pages listed in the table of contents for Proprietary Funds: Statement of Net Assets, Statement of Revenues, Expenditures and Changes in Net Assets, and Statement of Cash Flows. Fiduciary funds Fiduciary funds, also called agency funds, are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of La Quinta's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on the pages listed in the : } table of contents for Fiduciary Funds: Statement of Fiduciary Assets and Liabilities — Agency Funds. Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on the pages listed in the table of contents for Notes to the Basic Financial Statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of La Quinta's General Fund and its budget appropriations. Required supplementary information can be found in the table of contents under the section Required Supplemental Information and includes Notes to the Required Supplementary Information and a General Fund Budgetary Comparison Schedule. f? The combining statements referred to earlier in connection with non -major govern- mental funds, internal service funds, and agency funds are presented immediately following the required supplementary. Combining and individual fund statements and schedules can be found in the table of contents under Supplementary Schedules. Government -wide financial analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of La Quinta, assets exceeded liabilities by $547,995,000 at the close of the most recent fiscal year, which is $16,226,000 less than the previous year. The largest portion of the City of La Quinta's net assets, which was 69% this year and 65% last year, reflects its investment in capital assets (e.g., land, buildings; machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of La Quinta uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of La Quinta's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of La Quinta Net Assets Governmental activities Businesstypeactivities Total • 2010 2009 2010 2009 2010 2009 Current and other assets $ 207,301.319 $ 225,009,148 $ (4,606,437) $ (3,721,932) $ 202,694,882 $ 221.287.216 Capital assets 565,238,042 559,028,995 42,9 25 42,821,825,1 7 601,857MO- 7otal assets 772,539,361 784,038,143 38,327,588 39,099,893 810, 4 . 38, Current liabilities 32-5-5 2-4-3 22,137,899 257,411 215,522 32.809,847 22,353,421 Non -current liabilities 230,0 7,350 236,278,140 54,543 285,217 230,061,893 236,563, 557 Total liabilities 262,559,786 258,41 l5,039 311,954 500,7 ,871. . 78 Net assets: Invested in capital assets, net of related debt 336,459,272 323,669,955 42,879,482 42,767,282 379,338,754 366,437,237 . , Restricted 96,332,870 105,2 7,168 - - 96,332,870 105,277, 668 Unrestricted 77,187,433 96,654,981 (4,863,848) (4,168,128) 72,323.585 92,486,853 ` ola net assets $ 509,979,575 525,622,104 5, ,5 5 547,995,209 8 An additional portion of the City of La Quinta's net assets (18 percent versus 19 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 - $72,324,000 (13 percent) may be used to meet the government's ongoing obligations to citizens and creditors. 7 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 $4,864,000. Governmental activities Governmental activities net assets decreased by $15,643,000 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 Governmental - Business -type activities activities Total Beaenues- 2010 2009 Change 2010 2009 Change 2010 2009 Lange ogram revenues: Charges for services 2,566,525 3,121,276 (554,751) 3,584,996 3.368.135 216,861 6.151.521 6,489,411 (337.890) perehng grants an contributions 15,363,650 10,725,280 4,638,370 - - - 15,363,650 10,725,280 4,638,370 pdal grants and Contributions 13eneral revenues. 5,974,311 10,64) 270 (4,672,959) - - 5,974,311 10,647.270 (4,672.959) and reslatemants,c" rans ers (15,642,529) _ 16.919.485 (32,562,014) (583 520) (1 069 33T) 485,817 (16,226,049) 15 850 148 (32,076,197) _ • Revenues decreased by $4,463,000 with the largest category decreases in capital grants and contributions of $4,673,000 and investment income of $2,026,000. One of the reasons for the decrease in the capital grant contribution account is that development impact fees collections in Fiscal Year 2009-2010 totaled $179,000 and in Fiscal Year 2008-2009 the total was $1,167,000 for a $988,000 decrease. Another reason for the decrease in the capital grant contribution account was that grant revenues from Federal, State, County, and Special Districts for capital projects declined by $2,320,000 from the prior year. Interest income declined from $7,390,000 in Fiscal Year 2008-2009 to $5,364,000 or $2,026,000. The portfolio earned an average interest rate of .51 percent (a little over one half of one percent) in Fiscal Year 2009-2010 versus a 1.72% rate in Fiscal Year 2008-2009. These lower rates were offset slightly by a higher average cash balance of $181 million per month in Fiscal Year 2009-2010 versus $178 million in Fiscal Year 2008-2009. t' :9 i • Expenses increased by $27,613,000 with the two largest category changes being an increase in the General Government category of $26,451,000 and increase in the Public Safety category of $1,538,000. The increase in the General Government category is primarily the result of the $23.5 million Supplemental Educational Augmentation Fund (SERAF) payment made to the County of Riverside as mandated by the State of California. The increase in the Public Safety costs is a result of higher police costs ($600,000) and fire service costs ($500,000) than the prior year. • There were no contributions in assets from the governmental activities to the business -type activities. Expenses and Program Revenues -Government Activities o Expenses ❑ Program ms nues 40,000,000 35,000,000 34,287.068 30.000,000 25,000,000 21,274,519 20,000,000 15,923,380 15,846,470 15 330,603 15,000,000 12 326,--- 10,000,000 4.344.070 5,173,326 5,000,000 3,728,554 404 592 170,140 General Public safety Planning and Community services Public vorks Interest eguense government development Expenses and Program Revenues - Businesstype Activities ❑ Expenses 0 Rogram revenues 4 300,000 4,169,768 4,200,000 4,100,000 4,000.000 3 900,000 3,800,000 3,700,000 3.584,996 3,600,000 3,500,000 3.400.000 3300 000 3,200,000 Gag 9 Business -type activities This was the fifth full year of operations for the SilverRock Golf fund since the golf course began early operation in 2005. Net assets decreased by $ (584,000) from the effects of an operating loss. Charges for services primarily consisted of green fees which totaled $3,586,000, and was $215,000 more than the previous year, with golf course expenses of $4,170,000, which was $271,000 less than the previous year. During the year the golf course did not renew an expiring lease for golf course equipment and instead purchased capitalized equipment totaling $660,000. This purchase will lead to future cost savings since lease payments will no longer be necessary for this equipment. During Fiscal Year 2009-2010, an additional advance of $1 million was required for the golf course operations ($981,000 in principal and $19,000 in interest). This brings the total outstanding advance due to the General Fund from the inception of the Golf Course opening to $5,300,000. It is anticipated that these advances will be repaid from future income from SilverRock activities such as transient occupancy tax, sales tax and golf course net income generated on the site in future years. 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 fund balances. 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 $161.1 million as follows: Fund balances Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable $57,916,531 63% $6,396,015 .9% $64,312,546 40% Restricted 0 0% 0 0% 0 0% Committed 22,279,588 24% 96,332,870 139% 118,612,458 74% Assigned 1,555,176 2% 0 0% 1,555,176 1% Unassigned 10,278,823 11% (33,626,907) 480% (23,348,084) -15% $92,030,118 $69,101,978 $161,132,096 Total 10 Governmental fund balances ended the year totaling $161,132,000, a decrease of $19,296,000 in comparison with the prior years ending balance of $180,428,000. Of this amount $64,313,000 or 40% constitutes nonspendable reserves, which means that these reserves must be maintained intact, $118,613,000 or 74% are committed fund balances with has resulted in self-imposed limitations placed upon the funds by the Governing Board responsible for adopting the fund budget, assigned reserves of $1,555,000 or 1% consist of carryover appropriations which were budgeted for in Fiscal Year 2009-2010 but were unspent and will be budgeted again in the next budget year. The remainder of fund balance or minus $23.3 million represents unassigned fund balances or the residual net resources after taking into consideration the other classifications. General Fund The general fund is the chief operating fund of the City of La Quinta. At the end of the current fiscal year, unassigned fund balance of the general fund was $10,279,000, while total fund balance reached $92,030,000. 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 213 percent of the total budgeted expenditures. The City of La Quinta's general fund balance decreased by $297,000 in Fiscal Year 2009-2010. Key factors in this slight decrease are as follows: • Actual expenditures were $3,870,000 less than the final budget. Divisions that were under budget for the year were Planning & Development Administration ($747,000), Street Maintenance ($691,000), Police ($430,000), and Fire ($403,000. In addition, actual transfers out were $598,000 less than budgeted with $281,000 of this amount unspent Fire Station 32 construction costs and $129,000 unspent Avenue 54 and Madison Street traffic signal costs. Both of these construction project funding will be carried over for completion in Fiscal Year 2010-2011. • Actual revenue collections were $52,000 more than the final adjusted budget. Overall, taxes were $706,000 more than budgeted for in Fiscal Year 2009-2010, however, the actual taxes collected in Fiscal Year 2009-2010 ($19.7 million) was $1 million less the prior year tax actual collections of $20.7 million. Actual transient occupancy tax collections in Fiscal Year 2009-2010 were $4,175,000 or $305,000 less than prior year collections. Actual sales tax collections for Fiscal Year 2009-2010 were $6,927,000 or $353,000 less than the $7,280,000 collected in Fiscal Year 2008-2009. Other categories that received less than the final budget were intergovernmental ($410,000) and investment income ($188,000). Intergovernmental revenues were less than budgeted because of a decline of $226,000 in motor vehicle in lieu collections and interest income was less because of continuing low interest rate environment on investments. 11 Capital Improvement Fund The fund is primarily used to record the expenditure of funds for capital projects. The fund had seventy three (73) active Capital Improvement Projects budgeted for during Fiscal Year 2009-2010. The three most active projects during the year were the Cove Fire Station 32 Project ($3,467,000), Phase 1 of the Maintenance Yard Improvements ($1,882,000) and the Phase 3 Highway 111 Project ($1,676,000). Other major projects budgeted in the future include SilverRock Resort infrastructure improvements, Adams Street bridge improvements, Community Park land acquisition, and the Washington Street apartment rehabilitation project. 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 $9.83 million advance from the General Fund is outstanding at the end of Fiscal Year 2009-2010. 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. Major capital projects including SilverRock infrastructure improvements, SilverRock main entry road features, permanent SilverRock Clubhouse improvements, and the Coachella Canal relocation have been budgeted for future construction. 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 Project Area 1 Debt Service Fund Balance decreased by $18,670,000 in Fiscal Year 2009-2010 to end the year at a $13.2 million deficit. This is primarily due to a $23.5 million payment to the County of Riverside mandated to be made by the State of California to raise $2.1 billion state-wide over a two year period from Redevelopment Agencies to help the State deal with its own budget shortfalls. During the year, the General Fund advanced $10 million to the Project Area 1 Debt Service Fund, which increased the principal amount due to the General Fund at the end of the year from $12 million to $22 million. ' ` The Fund received less property tax revenues ($38.5 million) in Fiscal Year 2009-2010 versus the prior year ($40.5 million) due to falling property values. The Project Area 2 Debt Service Fund Balance decreased by $1.78 million to leave a deficit of $4.9 million at year end. The key factor is that the Fund received less property tax revenues ($20.8 million) in Fiscal Year 2009-2010 than in the prior year ($22.8 million) due to falling property values. 12 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. • As the City continued to experience declining revenues in Fiscal Year 2009-2010, as it had in Fiscal Year 2008-2009, the City transferred $600,000 from the Equipment Replacement and $600,000 from the Park Equipment and Facility Internal Service Funds to the General Fund. In addition to these transfers, no charges for services were made to the General Fund from the Equipment Replacement Fund and the Park Equipment and Facility Fund in Fiscal Year 2009-2010 General Fund Budgetary Highlights During the year there was a $3,901,000 increase in appropriations and transfers out between the original ($39,287,000) and final amended budget ($43,188,000). Following are the main components of the changes: • During the mid -year review, the General Fund budget for various divisions was reduced by $828,000 based upon an estimated decrease of revenues forecasted for Fiscal Year 2009-2010; and, • The FY 2008-2009 budget included carryover encumbrances of $36,000 and $3,447,000 in carryover appropriations into FY 2009-2010. • The Fiscal Year 2009-2010 budget included an appropriation of $1,231,427 to pay- off the CaIPERS retirement plan "side fund". This payment to the retirement system reduced the City future employer retirement rate by 2.221 % and is expected to save an estimated $643,000. The budget increases were possible because of additional anticipated revenues and unassigned reserves and the carryover encumbrances and appropriations were e possible from available net changes in fund balances. 13 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, 2010, amounts to $608,172,000 (net of accumulated depreciation). This investment in capital assets includes land, right of way, buildings and improvements, machinery and equipment, streets and bridges, and construction in progress. The investment in capital assets increased this fiscal year from the purchase of properties which exceeded the depreciation expenses. The following chart lists the asset categories for governmental and business like activities net of depreciation. City of La Quinta Capital Assets (net of depreciation) Governmental Business -type activities activities Total 2010 2009 2010 2009 2010 2009 Land tivactings an improvements 44,736,121 45,394,528 5,363,822 5,598,377 50.099,943 50,992,905 tquipment and turniture e is es o ware - - infrastructure - - Construction in progress - - total , Major capital asset events during the current fiscal year included the following: Governmental activities • Recording infrastructure improvements, including developer dedications of $4,235,000, to street improvements, street right of way, street sidewalks and curbs and gutters, and street medians; • Completed widening of Highway 111 between the western city limits and Washington Street totaling $1,947,000; • Completed widening of Fred Waring Drive between Washington Street and Palm Royale Drive totaling $1,776,000; and, • Completed construction of the Ave 52 bridge widening project from the Traffic Circle at Jefferson Street to Madison Street $1,999,000. 14 �a Business -type activities • The Golf Course purchased new maintenance equipment for $660,000 during Fiscal Year 2009-2010 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 $230,776,000. $135,935,000 of this debt amount represents bonds secured solely by specified revenue sources (i.e., tax allocation bonds); while, $87,650,000 of the debt represents revenue bonds that will be paid from pledged tax increment property tax housing funds. In addition, $55,000 in capital equipment leases is outstanding in connection with SilverRock Golf Course and $115,000 in a copier lease is outstanding in the governmental funds. City of La Quinta Outstanding Debt Governmental Business -type activities activities Total Debttype: 2010 2009 2010 2009 2010 2009 Capital leases Compensated absences - Post retirement healthcare liability 225,979 107,944 225,979 107,944 Developer agreement - - ss through agreement - - ue to government agencies - - 2,069,482 2,330,065 Loans payable - - ax allocation on s - - •Revenue bonds - - oa The total outstanding debt decreased by $6,645,000 during Fiscal Year 2009-2010. 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 Year2010-2011: • The City of La Quinta had a 7.5 versus 7.4 percent last year unemployment rate. This rate is significantly lower than the Riverside County unemployment rate of 14.5 versus 14.0 percent last year and the statewide unemployment rate of 12.2 versus 11.6 percent last year. 15 • During the last ten years, the City of La Quinta has been in a growth phase with assessed values increasing from $2.68 billion in Fiscal Year 2000-2001 to $11.86 billion or over 442 percent. It is important to note however, that from Fiscal Year 2008-2009 to Fiscal Year 2009-2010 assessed values decreased by $660 million or 5.34%. • During the current fiscal year, the general fund net loss was $(297,000) and $1,555,000 of General fund balance has been assigned for carry over appropriations. • The State of California Fiscal Year 2009-2010 budget included a State-wide diversion of tax increment funding from Redevelopment Agencies. The La Quinta Redevelopment Agency portion of the Fiscal Year 2009-2010 take -away was $23,560,000 and the Fiscal Year 2010-2011 takeaway has been budgeted at $4,851,000. • The Fiscal Year 2010-2011 General Fund advance toward golf course operations has been budgeted at $107,000. • The City of La Quinta adopted a balanced general fund budget for Fiscal Year 2010- 2011. Requests for Information This financial report is designed to provide a general overview of the City of La Quinta's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of La Quinta, John Falconer, Finance Director, P.O. Box 1504, La Quinta, CA, 92247 or by telephone at 760-777- 7150. 16 CITY OF LA QUINTA STATEMENT OF NET ASSETS JUNE 30, 2010 Primary Government Governmental Business -Type Activities Activities Total Assets: Cash and investments $ 165,248,585 $ 301,923 $ 165,550,508 Receivables: Accounts 124,489 11,704 136,193 Taxes 2,118,415 - 2,118,415 Notes and loans 3,920,107 - 3,920,107 Accrued interest 149,469 202 149,671 Internal balances 5,294,572 (5,294,572) - Prepaid costs 17,010 1,865 18,875 Deposits 16,230 250,000 266,230 Due from other governments 8,307,096 - 8,307,096 Inventories - 122,441 122,441 Deferred charges 4,196,372 - 4,196,372 Restricted assets: Cash with fiscal agent 16,570,211 16,570,211 Net Pension Asset 1,338,763 - 1,338,763 Capital assets not being depreciated 403,797,289 36,840,832 440,638,121 Capital assets, net of depreciation 161,440,753 6,093,193 167,533,946 Total Assets 772,539,361 38,327,588 810,866,949 Liabilities: Accounts payable 7,499,697 190,185 7,689,882 Accrued liabilities 473,980 1,894 475,874 Accrued interest 3,962,993 - 3,962,993 Unearned revenue 1,306,449 4,332 1,310,781 Deposits payable 5,565,097 61,000 5,626,097 Due to other governments 13,744,220 - 13,744,220 Noncurrent liabilities: Due within one year 7,943,481 54,543 7,998,024 Due in more than one year 222,063,869 - 222,063,869 Total Liabilities 262,559,786 311,954 262,871,740 Net Assets: Invested in capital assets, net of related debt 336,459,272 42,879,482 379,338,754 Restricted for: Planning and development projects 31,032,124 - 31,032,124 Public safety 48,852 - 48,852 Community services 11,675,417 - 11,675,417 Public works 448,731 - 448,731 Capital projects 53,123,856 - 53,123,856 Debt service 3,890 - 3,890 Unrestricted 77,187,433 (4,863,848) 72,323,585 Total Net Assets $ 509,979,575 $ 38,015,634 $ 547,995,209 See Notes to Financial Statement 17 CITY OF LA QUINTA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2010 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 34,287,068 $ 21,439 $ 101,191 $ - Public safety 21,274,519 1,100,491 9,351,571 66,845 Planning and development 15,923,380 69,391 2,499,150 554,450 Community services 5,173,326 250,557 17,836 - Public works 12,326,726 1,124,647 3,393,902 5,353,016 Interest on long-term debt 15,330,603 - - Total Governmental Activities 104,315,622 2,566,525 15,363,650 5,974,311 Business -Type Activities: Golf Course 4,169,768 3,584,996 - - Total Business -Type Activities 4,169,768 3,584,996 - - Total Primary Government $ 108,485,390 $ 6,151,521 $ 15,363,650 $ 5,974,311 General Revenues: Taxes: Property taxes, levied for general purpose Tax increment Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Other taxes Motor vehicle in lieu - unrestricted Use of money and property Other Gain on sale of capital asset Total General Revenues, Contributions, Special Items and Transfers Change in Net Assets Net Assets at Beginning of Year Net Assets at End of Year r See Notes to Financial Statements 18 I Net (Expenses) Revenues and Changes in Net Assets Primary Government Governmental Business -Type i Activities Activities Total i $ (34,164,438) (10,755,612) (12,800,389) (4,904,933) (2,455,161) (15,330,603) (80,411,136) R $ (34,164,438) (10,755,612) (12,800,389) (4,904,933) (2,455,161) (15,330,603) (80,411,136) (5734,772) (584,772) (5134,772) (584,772) (80,411,136) (584,772) (80,995,908) 6,278,470 - 6,278,470 35,390,317 - 35,390,317 4,265,438 - 4,265,438 6,927,388 - 6,927,388 1,585,427 - 1,585,427 302,223 - 302,223 461,957 - 461,957 3,714,437 - 3,714,437 5,362,684 1,252 5,363,936 477,936 - 477,936 2,330 2,330 64,768,607 1,252 64,769,859 (15,642,529) (583,520) (16,226,049) 525,622,104 38,599,154 564,221,258 $ 509,979,575 $ 38,015,634 $ 547,995,209 See Notes to Financial Statements 19 CITY OF LA QUINTA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2010 Capital Projects Funds Capital Redevelopment General Improvement Civic Center Agency PA No. 1 Assets: Pooled cash and investments $ 40,664,631 $ 4,022,880 $ - $ 29,504,571 Receivables: Accounts 42,500 - - - Taxes 1,910,118 Notes and loans - - - - Accrued interest 54,885 - - 22,764 Prepaid costs 9,030 6,916 - - Deposits 9,830 - Due from other governments 6,849,167 461,392 - - Due from other funds 348,071 - - - Advances to other funds 57,897,671 - - 3,355,081 Restricted assets: Cash and investments with fiscal agents - - - 11,000,659 Total Assets $ 107,785,903 $ 4,491,188 $ - $ 43,883,075 Liabilities and Fund Balances: Liabilities: I Accounts payable $ 3,474,762 $ 3,819,775 $ - $ 5,423 Accrued liabilities 470,576 - - - Deferred revenues 6,421,194 - Unearned revenues 531,814 198,850 - - Deposits payable - 4,846,597 472,563 - - Due to other governments 10,942 - - - Due to other funds - Advances from other funds - - 9,833,714 - i1 Total Liabilities 15,755,785 4,491,188 9,833,714 5,423 Fund Balances: Nonspendable: Prepaid costs 9,030 6,916 - - Notes and loans - - - - ; Advances to other funds 57,897,671 - - 3,355,081 Deposits 9,830 - - - Restricted for: Planning and development projects - - - - Public safety - - - - ! , Community services - - - - Public works - - - - Capital Projects - - - 40,522,571 , Debt service - - - - - Committed to:. Cash flow reserve 3,246,881 - - - .Emergency reserve 17,774,648 - - - Post retirement health benefits 1,258,059 - - - Assigned to: Continuing appropriations 1,555,176 - - - Unassigned 10,278,823 (6,916) (9,833,714) - i t Total Fund Balances 92,030,118 - (9,833,714) 43,877,652 Total Liabilities and Fund Balances $ 107,785,903 $ 4,491,188 $ - $ 43,883,075 'E See Notes to Financial Statements 20 .i ' CITY OF LA QUINTA r ' BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2010 .: Debt Service Funds Other Total t Redevelopment Redevelopment Governmental Governmental Agency PA No. 1 _ _Agency PA No. 2 Funds Funds Assets: Pooled cash and investments $ 13,697,886 $ 23,114,569 $ 50,347,090 $ 161,351,627 Receivables: Accounts - - 81,989 124,489 Taxes 107,071 59,567 41,659 2,118,415 Notes and loans - - 3,920,107 3,920,107 Accrued interest 13,709 16,850 38,261 146,469 Prepaid costs - - 824 16,770 ` Deposits - - 6,400 16,230 Due from other governments - - 996,537 8,307,096 Due from other funds - - 2,143,702 2,491,773 Advances to other funds - - 938,085 62,190,837 Restricted assets: Cash and investments with fiscal agents - - 5,569,552 16,570,211 Total Assets $ 13,818,666 $ 23,190,986 $ 64,084,206 $ 257,254,024 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 94,996 $ 7,394,956 Accrued liabilities - - - 470,576 Deferred revenues - - 1,831,398 8,252,592 • Unearned revenues - - 575,785 1,306,449 Deposits payable - - 245,937 5,565,097 . Due to other governments 5,006,556 8,726,822 - 13,744,220 Due to other funds - - 2,491,773 2,491,773 Advances from other funds 22,000,000 19,378,966 5,683,585 56,896,265 Total Liabilities 27,006,556 28,105,788 10,923,474 96,121,928 Fund Balances: Nonspendable: Prepaid casts - - 824 16,770 Notes and loans - - 2,088,709 2,088,709 Advances to other funds - - - 938,085 62,190,837 Deposits - - 6,400 16,230 Restricted for: Planning and development projects - - 31,032,124 31,032,124 Public safety - - 48,852 48,852 Community services - - 11,675,417 11,675,417 Public works - - 448,731 448,731 Capital Projects - - 12,601,285 53,123,856 _ Debt service - - 3,890 3,890 Committed to: Cash Pow reserve - - - 3,246,881 Emergency reserve - - - 17,774,648 • Post retirement health benefits - - - 1,258,059 Assigned to: Continuing appropriations - - - 1,555,176 Unassigned (13,187,890) (4,914,802) (5,683,585) (23,348,084) Total Fund Balances (13,187,890) (4,914,802) 53,160,732 161,132,096 Total Liabilities and Fund (Balances $ 13,818,666 $ 23,190,986 $ 64,084,206 $ 257,254,024 e See Notes to Financial Statements 21 THIS PAGE INTENTIONALLY LEFT BLANK 22 CITY OF LA QUINTA j RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2010 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity: Infrastructure and right-of-way Other capital assets Accumulated depreciation Long-term debt and compensated absences that have not been included in the governmental fund activity: $ 161,132,096 470, 911,924 161,306,828 (82,536,666) Bonds payable (223,585,000) Unamortized bond premium/discount 768,802 Unamortized cost of issuance 4,196,372 Other long-term liabilities (5,962,572) Compensated absences (994,178) Governmental funds report all OPEB contributions as expenditures, however in the Statement of Net Assets any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as a liability. (225,979) Governmental funds report all Pension contributions as expenditures, however in the Statement of Net Assets any excesses or deficiencies in contributions in relation to the annual contribution are recorded as an asset 1,338,763 Accrued interest payable for the current portion of interest due on r Bonds has not been reported in the governmental funds (3,962,993) 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. 8,252,592 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 19,339,586 Net assets of governmental activities $ 509,979,575 p See Notes to Financial Statements 23 CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30. 2010 Capital Projects Funds Capital Redevelopment General Improvement Civic Center Agency PA No. 1 Revenues: Taxes $ 19,730,707 $ - $ - $ - Assessments - - - - Licenses and permits 472,409 - - - Intergovernmental 12,641,162 758,602 - - Chargesforservices 478,716 - - Use of money and property 3,601,495 - - 196,204 Fines and forfeitures 395,823 - - - 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 Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year - 52,508 38,884 - 126,246 - - 325,000 jl 37,446,558 811,110 38,884 521,204 �{ 5,697,766 - - 204,362 - 19,921,752 - - - 1,355,177 - - 969,116 2,773,467 - - - 4,759,642 - - - 111,049 14,366,561 - - 34,586 219,230 - - - - 29,224 51,069 - 34,653,439 14,615,015 255,431 969,116 2,793,119 (13,803,905) (216,547) (447,912) t `i it 1,574,071 13,803,905 - - (4,664,453) - - (603,719) i (3,090,382) 13,803,905 - (603,719) (297,263) - (216,547) (1,051,631) ` 92,327,381 - (9,617,167) 44,929,283 $ 92,030,118 $ $ (9,833,714) $ 43,877,652 See Notes to Financial Statements 24 ! i CITY OF LA QUINTA 1 STATEMENT OF REVENUES, ( EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2010 Debt Service Funds Other Total Redevelopment Redevelopment Governmental Governmental Agency PA No. 1 Agency PA No. 2 Funds Funds „ Revenues: Taxes $ 38,517,789 $ 20,763,180 $ 14,820,242 $ 93,831,918 r I Assessments - - 966,639 966,639 Licenses and permits - - - 472,409 - - Intergovernmental - - 6,073,312 19,473,076 Charges for services - - 5,327 484,043 Use of money and property 94,785 94,615 1,351,580 5,338,679 Fines and forfeitures - - - 395,823 ` Developer participation - - 182,347 273,739 Miscellaneous - - 157,096 608,342 i Total Revenues 38,612,574 20,857,795 23,556,543 121,844,668 Expenditures: Current: General government 24,056,133 253,227 9,394 30,220,882 Public safety - - 195,184 20,116,936 . Planning and development - - 3,704,199 6,028,492 Community services - - 1,431,159 4,204.626 Public works - - 2,103,245 6,862,887 Capital outlay - - 37,300 14,514,910 - Debt service: Principal retirement 3,936,688 320,000 2,105,908 6,616,412 Interest and fiscal charges 8,572,395 1,956,078 4,749,202 15,357,968 Pass -through agreement payments 21,194,350 17,516,544 - 38,710,894 Total Expenditures 57,759,566 20,045,849 14,335,591 142,634,007 Excess (Deficiency) of Revenues Over(Under)Expenditures (19,146,992) 811,946 9,220,952 (20,789,339) Other Financing Sources (Uses): Transfers in 4,438,892 1,951,399 8,618,105 30,386,372 Transfers out (3,961,932) (4,551,399) (15,111,862) (28,893,365) Total Other Financing Sources (Uses) 476,960 (2,600,000) (6,493,757) 1,493,007 Net Change in Fund Balances (18,670,032) (1,788,054) 2,727,195 (19,296,332) Fund Balances, Beginning of Year 5,482,142 (3,126,748) 50,433,537 180,428,428 Fund Balances, End of Year $ (13,187,890) $ (4,914,802) $ 53,160,732 $ 161,132,096 See Notes to Financial Statements 25 CITY OF LA QUINTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2010 Net change in fund balances - total governmental funds $ (19,296,332) 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 15,067,225 Depreciation expense (8,302,271) 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. Repayment of principal 6,616,412 Amortization of issuance costs, premiums and discounts (81,240) Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 108,605 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 (82,639) Governmental funds report all contributions in relation to the annual required contribution (ARC) for OPEB as expenditures, however in the Statement of Activities only the ARC is an expense. (118,035) Governmental funds report all contributions in excess to the required contribution for PERS as expenditures, however in the Statement of Activities only the current contribution is an expense. 1,338,763 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. (8,526,740) 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 (2,366,277) Change in net assets of governmental activities $ (15,642,529) See Notes to Financial Statements 26 r� CITY OF LA QUINTA BUDGETARY COMPARISON STATEMENT BY DEPARTMENT GENERALFUND YEAR ENDED JUNE 30, 2010 Variance with j Final Budget Budget Amounts Actual Positive ' Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 92,327,381 $ 92,327,381 $ 92,327,381 $ - Resources (Inflows): I Taxes 20,799,360 19,025,149 19,730,707 705,558 4 Licenses and permits 435,600 464,100 472,409 8,309 I } Intergovernmental 13,417,395 13,050,881 12,641,162 (409,719) Charges for services 452,700 434,700 478,716 44,016 Use of money and property 3,538,400 3,789,983 3,601,495 (188,488) Fines and forfeitures 192,400 399,400 395,823 (3,577) Miscellaneous 94,900 181,400 126,246 (55,154) Transfers in 367,716 1,623,045 1,574,071 (48,974) ( Amounts Available for Appropriation 131,625,852 131,296,039 131,348,010 51,971 c k Charges to Appropriation (Outflow): General government Legislative 1,001,595 1,027,415 969,366 58,049 City Manager 430,696 379,309 343,786 35,523 Development Services 1,399,803 1,590,147 1,389,129 201,018 Management Services 1,279,477 1,562,586 1,303,594 258,992 City Clerk 580,851 625,278 556,127 69,151 Fiscal Services 872,880 860,387 880,798 (20,411) Central Services 292,210 282,060 254,966 27,094 Public safety Police 12,539,455 12,582,207 12,151,744 430,463 Building & Safety Admin. 240,218 201,373 292,681 (91,308) Building 838,963 916,939 875,157 41,782 Code Compliance 958,895 1,054,785 1,008,700 46,085 Animal Control 371,295 401,854 389,190 12,664 Civic Center Bldg 528,430 538,877 478,842 60,035 Fire 4,885,910 4,968,161 4,565,159 403,002 Emergency Services 148,903 163,225 160,279 2,946 Planning and development Administration 604,904 1,506,121 759,302 746,819 Current Planning 678,891 767,535 595,875 171,660 Community services Community Services Admin 1,006,716 1,430,348 1,242,829 187,519 Senior Center 394,720 419,999 386,702 33,297 Parks & Recreation 198,832 210,498 200,604 9,894 Park Maintenance 975,647 994,754 943,332 51,422 Public works Administration 487,452 540,721 532,277 8,444 Development Services 903,692 952,106 867,588 84,518 Maintenance/Operations - Street 1,026,125 2,236,408 1,545,683 690,725 Maintenance/Operations - Lighting 819,324 839,060 587,034 252,026 Construction Management 881,597 658,162 1,227,060 (568,898) " Capital outlay 178,800 181,315 111,049 70,266 Debt service, Principal retirement 34,586 34,586 34,586 - Transfers out 4,726,295 5,262,008 4,664,453 597,555 Total Charges to Appropriations 39,287,162 43,188,224 39,317,892 3,870,332 i 4 Budgetary Fund Balance, June 30 $ 92,338,690 $ 88,107,815 $ 92,030,118 $ 3,922,303 , iSee Notes to Financial Statements 27 CITY OF LA OUINTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2010 Assets: Current: 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 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 Business -Type Activities - Enterprise Funds Governmental Activities - Internal Golf Course Service Funds $ 301,923 $ 3;896,958 11,704 - 202 3,000 1,865 240 250,000 - 122,441 - 688,135 3,900,198 42, 934, 025 15, 555, 956 42,934,025 15,555,956 $ 43,622,160 $ 19,456,154 $ 190,185 $ 104,741 1,894 3,404 4,332 - 61,000 54,543 - 311,954 108,145 5,294,572 - - 8,423 5,294,572 8,423 5,606,526 116,568 42,879,482 15,655, 956 (4,863,848) 3,783,630 38, 015, 634 19,339,586 $ 43,622,160 $ 19,456,154 See Notes to Financial Statements 28 CITY OF LA QUINTA 1 ( STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2010 ,i Business -Type Activities - Enterprise Funds Governmental 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 expense 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 r Capital contributions Transfers out Changes in Net Assets Net Assets: Beginning of Year End of Fiscal Year 0 Activities - Internal Golf Course Service Funds 3,584,996 $ 331,044 3,684,996 331,044 60,239 108,322 - 92,265 - 83,830 3,465,058 69,819 - 111,447 547,328 770,119 65,074 57,154 4,137,699 1,292,966 (552,703) (961,912) 1,252 24,005 (32,069) - 2,330 (30,817) 26,336 (583,520) (935,577) 62,307 (1,493,007) (583,520) (2,366,277) 38,599,154 21,705,863 $ 38,015,634 $ 19,339,586 i See Notes to Financial Statement 29 CITY OF LA QUINTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2010 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 out Advance from other funds Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt 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 c Business -Type Activities - Enterprise Funds Governmental Activities - Internal Golf Course Service Funds $ 3,590,459 $ 331,044 (1,390) - (3,547,572) (318,814) (60,438) (107,460) (18,941) (95,230) (1,493,007) 1,004,097 1,004,097 (1,493,007) (659,528) (151,905) (230,674) (32,069) - 2,330 (922,271) (149,575) 1,281 27,312 1,281 27,312 64,166 (1,710,500) 237,757 5,607,458 $ 301,923 $ 3,896,958 See Notes to Financial Statement 30 CITY OF LA QUINTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2010 Business -Type Activities - Enterprise Funds Governmental Activities - Internal Golf Course Service Funds Reconciliation of Operating Income to Net Cash < Provided (Used) by Operating Activities: Operating income (loss) $ (552,703) $ (961,912) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 547,328 770,119 (Increase) decrease in accounts receivable 3,652 - (Increase) decrease in inventories (59,107) - (Increase) decrease in prepaid expense - (240) Increase (decrease) in accounts payable 28,277 95,544 Increase (decrease) in accrued liabilities (199) 397 Increase (decrease) in deposits payable 12,000 - Increase (decrease) in unearned revenue 1,811 - Increase (decrease) in compensated absences - 862 Total Adjustments 533,762 866,682 Net Cash Provided (Used) by Operating Activities $ (18,94t) $ (95,230) Non -Cash Investing, Capital, and Financing Activities: Capital assets contributed by other funds $ - $ 62,307 See Notes to Financial Statement 31 CITY OF LA QUINTA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2010 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Total Liabilities and Net Assets Agency Funds $ 551,708 13,790 406 $ 565,904 $ 565,904 $ 565,904 $ 565,904 See Notes to Financial Statements 32 CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS JUNE 30, 2010 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES i 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 lfor 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. i � 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. �f 33 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 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. City of La Quinta Housing Authority The La Quinta Housing Authority (Authority) was established pursuant to California d Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009. The purpose of the Authority is to provide safe and sanitary t housing opportunities for La Quinta residents. 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, i 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 clearly identifiable with a specific function or segment. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program- Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not properly included among program revenues are reported instead as general revenues. 34 rj CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Summary of Significant Accounting Policies (Continued) Amounts paid to acquire capital assets are capitalized as assets in the r 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. 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 310 days. 35 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Summary of Significant Accounting Policies (Continued) 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. 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. 36 CITY OF LA QUINTA I I NOTES TO FINANCIAL_ STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Summary of Significant Accounting Policies (Continued) Proprietary Funds The City's enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditures. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. 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. 37 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Summary of Significant Accounting Policies (Continued) d. Major Funds, Internal Service Funds and Fiduciary Fund Types The City's major governmental funds are as follows: General Fund — This fund is the primary fund of the City and is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, Building and Safety, and Community Services. 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 Proiect Area No "! — 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 Project 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. 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. t: I' CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) I I JUNE 30, 2010 Note 1: Summary of Significant Accounting Policies (Continued) 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 a, 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 Ouinta. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the proprietary funds is considered cash and cash equivalents. Inventory Inventory is valued at cost using the first in / 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 items in both prepaid government -wide and fund financial a 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. 39 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Summary of Significant Accounting Policies (Continued) 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 The City Council adopts and amends committed fund balance amounts through a resolution. The City Council authorizes assigned amounts for specific purposes pursuant to the policy -making powers granted through a resolution. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted amounts to be used first, then unrestricted. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, they are considered to be spent in the order as follows: committed, assigned and then unassigned. 11 40 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 11. 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, 2010, the following funds had deficit fund balances: Major Capital Projects Funds: Civic Center Major Debt Service Funds: Redevelopment Agency PA No. 1 Redevelopment Agency PA No. 2 Nonmajor Special Revenue Funds: Housing Authority PA No. 1 Housing Authority PA No. 2 Nonmajor Capital Projects Funds Parks and Recreation Library Development Street Facility Fire Facility $ (9,833,714) (13,187,890) (4,914,802) (1,414) (1,377) (1,417,770) (1,937,311) (1,390,419) (935,294) 41 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 2: Stewardship, Compliance and Accountability (Continued) c. Excess of expenditures over appropriations are as follows: Expenditures for the year ended June 30, 2010, exceeded the appropriations of the General Fund as follows: General Fund: General Government Fiscal services Public Safety Building & safety admin Public Works Construction management Budget Actual Variance $ 860,387 $ 880,798 $ (20,411) 201,373 292,681 (91,308) 658,162 1,227,060 (568,898) III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments Cash and investments as of June 30, 2010, 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, 2010, consist of the following: Cash on hand Deposits with financial institutions Investments Total cash and investments $ 165,550,508 16,570,211 551,708 $ 182,672,427 $ 1,400 (1,330,735) 184,001,762 $ 182,672,427 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. 42 I CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) 1 JUNE 30, 2010 Note 3: Cash and Investments (Continued) I *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 20% 10% Local Agency Investment Fund (LAIF) N/A 30% $40 million Investment Agreements N/A N/A N/A Based on state law requirements or investment policy requirements, whichever is more restrictive Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Authorized Investment Type Maturity Maximum Percentage Allowed U.S. Treasury Obligations None None i . U.S. Agency Securities None None Banker's Acceptance 360 days None Commercial Paper 270 days None Money Market Mutual Funds N/A None Negotiable Certificates of Deposit 360 days None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short term and long term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 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: [, i 43 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 3: Cash and Investments (Continued) Remaining Maturity (in Months) 6 Months 6 Months to 1 Investment Type Total or Less Year 1 to 3 Years U.S. Treasury obligations Certificates of Deposit Federal agency securities: Federal Home Loan Bank Medium term notes State investment pool Held by bond trustee: Money market funds U.S. Treasury bills Total $ 81,934,374 $ 69,912,432 $ 969,000 240,000 18,997,423 18,997,423 15,179,517 - 50,351,232 50,351,232 581,790 581,790 15,988,426 15,988,426 - $ 12,021,942 729,000 - 10,138,059 5,041,458 $ 184,001,762 $ 156,071,303 $ 10,867,059 $ 17,063,400 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 tens 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, 2010, 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 investment in medium term notes were all insured under the U.S Treasury Temporary Loan Guarantee Program (TLGP) and were all rated AA or better by S&P. The City's investments in money market mutual funds were all rated "AAA" by. S&P and Moody's. As of June 30, 2010, 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, 2010, the City had investments in Federal Home Loan Banks (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total investments. 44 i CITY OF LA QUINTA ` NOTES TO FINANCIAL STATEMENTS (CONTINUED) t ! JUNE 30, 2010 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 iin State Investment Pool The City 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 d ; 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. 45 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 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 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 Outstanding Balance at June 30, 2010 In September 1994, the Redevelopment Agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15,2029. $ 3,866,786 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. This loan was forgiven as of June 30, 2010. Other notes receivable 53,321 Total notes receivable balance at June 30, 2010 $ 3,920,107 46 1 CITY OF LA QUINTA ! NOTES TO FINANCIAL STATEMENTS (CONTINUED) } JUNE 30, 2010 j 1 Note 6: Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2010, is as follows: Beginning Ending Balance at Balance at I t - July 1, 2009 Additions Deletions Transfers June 30, 2010 Governmental Activities: Capital assets, not being depreciated: Land $ 75,663,033 $ 148,745 $ - $ 571,722 $ 76,383,500 Right of way 283,520,060 469,943 - 283,990,003 �. Construction -in -progress 42,402,317 14,615,009 5,480,406 (8,113,134) 43,423,786 Total Capital Assets, ; Not Being Depreciated I Capital assets, being depreciated: Buildings and improvements Equipment and furniture Vehicles Infrastructure Total Capital Assets, Being Depreciated is Less accumulated depreciation: a Buildings and improvements Equipment and furniture Vehicles Infrastructure Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net t 1 Governmental Activities Capital Assets, Net 401,585,410 15,233,697 5,480,406 (7,541,412) 403,797,289 58,061,983 600,000 - 701,618 59,363,601 2,168,640 68,419 9,627 - 2,227,432 1,578,399 98,893 20,344 - 1,656,948 176,358,734 3,814,041 90,647 6,839,794 186,921,922 238,167,756 4,581,353 120,618 7,541,412 250,169,903 12,667,455 1,960,025 - - 14,627,480 1,166,107 206,289 9,627 - 1,362,769 925,902 174,641 20,347 - 1,080,196 65,964,707 5,693,998 - - 71,658,705 80,724,171 8,034,953 29,974 88,729,150 157,443,585 (3,453,600) 90,644 7,541,412 161,440,753 $ 559,028,995 $ 11,780,097 $ 5,571,050 $ - $ 565,238,042 Depreciation expense was charged to the following functions in the Statement of Activities: General government $ 135,127 Public safety 1,046,292 Planning and development 923,961 Community services 124,086 Public works 5,805,487 Total governmental activities $ 8,034,953 47 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 6: Capital Assets (Continued) Capital asset activity for business -type activities for the year ended June 30, 2010, is as follows: Business -Type Activities: Capital assets, not being depreciated: Land Total Capital Assets, Not Being Depreciated Capital assets, being depreciated: Buildings and improvements Equipment and furniture Vehicles Software Total Capital Assets, Being Depreciated Less accumulated depreciation: Buildings and improvements Equipment and furniture Vehicles Software Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Governmental Activities Capital Assets, Net Beginning Ending Balance at Balance at July t, 2009 Additions Deletions Transfers June 30, 2010 $ 36,840,832 $ - $ - $ - $ 36,840,832 36,840,832 6,636,465 - 1,779,148 659,528 20,348 - 20,255 8,456,216 659,528 36,840,832 - - 6,636,465 - - 2,438,676 20,348 20,255 9,115,744 1,038,088 234,555 - - 1,272,643 1,400,594 308,712 - _ - 1,709,306 18,312 2,035 - - 20,347 18,229 2,026 - - 20,255 2,475,223 547,328 - - 3,022,551 5,980,993 112,200 6,093,193 $ 42,821,825 $ 112,200 $ - $ - $ 42,934,025 Depreciation expense was charged to the following function in the Statement of Activities: Golf Course $ 547,328 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 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, 2010: City: Compensated absences payable Due to the Coachella Valley Association of Governments Developer Agreement Payable Copier Lease Payable OPEB Liability 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 Beginning Balance at July 1, 2009 Additions Deletions Balance at June 30, 2010 Due within one year $ 919,100 $ 1,014,832 $ 931,331 $ 1,002,601 $ 1,002,601 178,311 - 50,000 128,311 50,000 343,814 169,230 174,584 174,584 149,169 - 34,586 114,583 44,358 107,944 118,035 - 225,979 - 133,390,000 - 3,135,000 130,255,000 3,330,000 2,874,653 - 801,688 2,072,965 817,722 5,800,000 - 120,000 5.680,000 125,000 1,400,000 - 200,000 1,200,000 200,000 1,556,283 - 25,325 1.530,958 27,525 751,754 - 10,583 741,171 11,691 89,720,000 - 2,070,000 87,650,000 2,160,000 $ 237,191,028 $ 1,132,867 $ 7,547,743 230,776,152 $ 7,943,481 Less: Unamortized premiumsidiscounts (768,802) Net Long -Term Debt $ 230,007,350 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, 2010, 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, 2010, the balance payable was $128,311. 49 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 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, 2010, are as follows: Principal 2010-2011 $ 50,000 2011-2012 50,000 2012-2013 28,311 Totals $ 128,311 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, 2010, 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, 2010, is $174,584. The minimum annual requirements to amortize the developer agreement payable as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ 174,584 $ 23,870 Totals $ 174,584 $ 23,870 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. 50 CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) JUNE 30, 2010 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, 2010 are as follows: Year Ending June 30, Total 2011 $ 44,358 2012 44,358 2013 44,358 Total Payments 133,074 Less Amount Representing Sales Tax (9,306) Less Amount Representing Interest (9,185) Outstanding Principal $ 114,583 Tax Allocation Bonds As of June 30, 2010, the following issuances of Tax Allocation Bonds were outstanding: Series 1994 Proiect Area No. 1 Tar: 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, 2010, is $6,920,000. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ 2,145,000 $ 426.868 2011-2012 2,305,000 264,443 2012-2013 2,470,000 90,155 Totals $ 6,920,000 $ 781,466 51 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) Series 1998, Project 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, 2010, is $15,760,000. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ $ 819,520 2011-2012 819,520 2012-2013 819,520 2013-2014 655,000 802,490 2014-2015 690,000 767,520 2015-2020 4,025,000 3,245,970 2020-2025 5,190,000 2,054,000 2025-2030 5,200,000 557,700 Totals $ 15,760,000 $ 9,886,240 Series 1998, Project Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. Interest rates on the bonds range from 3.75% to 5.28% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from pledged tax increment revenues of Project Area No. 2. Term Bonds maturing September 1, 2028 and September 1, 2033, are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2009 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal amount thereof plus accrued interest. .9a CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 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, 2010, is $5,680,000. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ 125,000 $ 293,272 2011-2012 130,000 286,738 2012-2013 140,000 279,819 2013-2014 145,000 272,516 2014-2015 150,000 264,956 2015-2020 885,000 1,196,406 2020-2025 1,145,000 933,844 2025-2030 1,475,000 591,281 2030-2035 1,485,000 160,781 Totals $ 5,680,000 $ 4,279,613 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, 2010, is $48,000,000 with an unamortized discount of $367,021. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ $ 2,430,720 2011-2012 2,430,720 2012-2013 2,430,720 2013-2014 1,565,000 2,391,595 2014-2015 1,645,000 2,311,345 2015-2020 9,550,000 10,203,600 2020-2025 12,190,000 7,488,600 2025-2030 15,625,000 3,965,123 2030-2035 7,425,000 383,393 Totals $ 48,000,000 $ 34,035,816 53 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) Series 2002, Project 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, 2010, is $35,765,000 with an unamortized discount of $324,221. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 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 2014-2015 735,000 1,659,656 2015-2020 4,270,000 7,693,906 2020-2025 5,450,000 6,481,519 2025-2030 8,475,000 4,862,472 2030-2035 14,010,000 1,299,188 Totals $ 35,765,000 $ 28,959,733 Series 2003, Proiect Area No. 1 On September 1, 2003, the Agency issued tax allocation bonds in the amount of $26,400,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1. The 2003 tax allocation bonds were issued at a discount of $277,200 and issuance costs of $629,191. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September 1, 2013 through September 1, 2032, are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each September 1 thereafter at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. 54 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) The principal balance of outstanding bonds at June 30, 2010, is $23,810,000 with an unamortized discount of $212,524. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 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 2014-2015 620,000 1,356,736 2015-2020 3,735,000 6,132,380 2020-2025 5,070,000 4,767,956 2025-2030 6,900,000 2,872,562 2030-2035 5,300,000 526,470 Totals $ 23,810,000 $ 21,406,356 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, 2010, 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, 2010, are as follows: Principal 2010-2011 $ 817,722 2011-2012 834,076 2012-2013 421,167 Totals $ 2,072,965 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 55 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) 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, 2010, is $1,200,000. The minimum annual requirements to amortize amounts due to the County of Riverside as of June 30, 2010, are as follows: Principal 2010-2011 $ 200,000 2011-2012 250,000 2012-2013 750,000 Totals $ 1,200,000 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, 2010, is $4,760,000. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ 420,000 $ 252,525 2011-2012 445,000 228,521 2012-2013 470,000 203,130 2013-2014 495,000 176,351 2014-2015 525,000 148,047 2015-2020 2,405,000 275,696 Totals $ 4,760,000 $ 1,284,270 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 CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) 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. 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, 2010, is $82,890,000 with an unamortized premium of $134,964. The minimum annual requirements to amortize the bond payable as of June 30, 2010, are as follows: 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2020 2020-2025 2025-2030 2030-2035 Totals Washington Street Apartments Principal $ 1,740,000 1,805,000 1,890,000 1,975,000 2,075,000 12,080,000 15,610,000 20,050,000 25,665,000 Interest $ 4,175,131 4,099,719 4,016,581 3,924,681 3,823,431 17,337,119 13,721,706 9,180,406 3,419,528 $ 82,890,000 $ 63,698,302 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 57 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Changes in Long -Term Liabilities - Governmental Activities (Continued) 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, 2010, is $1,530,958. The minimum annual requirements to amortize the loan payable. as of June 30, 2010, are as follows: Principal Interest 2010-2011 $ 27,525 $ 126,949 2011-2012 29,917 124,558 2012-2013 32,516 121,959 2013-2014 35,341 119,134 2014-2015 38,411 116,064 2015-2020 248,301 524,072 2020-2025 1,118,947 105,824 Totals $ 1,530,958 $ 1,238,560 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, 2010, is $741,171. Principal Interest 2010-2011 $ 11,691 $ 73,591 2011-2012 12,915 72,367 2012-2013 14,267 71,014 2013-2014 15,761 69,520 2014-2015 17,412 67,870 2015-2020 118,539 307,870 2020-2025 195,033 231,376 2025-2030 320,890 105,519 2030-2035 34,663 871 Totals $ 741,171 $ 999,998 58 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 8: Changes in Long -Tenn Liabilities — Business -type Activities Changes in business -type long-term liabilities for the year ended June 30, 2010, were as follows: Beginning Balance at Balance at Due within July 1, 2009 Additions Deletions June 30, 2010 one year Golf Course: Capital leases payable $ 285,217 $ - $ 230,674 $ 54,543 $ 54,543 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 City Golf Finance The present value of the minimum lease payments on golf carts was capitalized 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. $ 54,543 Total capital leases payable as of June 30, 2010 $ 54,543 The following schedule summarizes the debt to maturity payments for capital leases: Year Ending June 30, Total 2011 $ 54,543 Total Payments 54,543 Less Amount Representing Interest - Outstanding Principal $ 54,543 Note 9: Pledge Tax Revenues As previously discussed, the City's Redevelopment Agency 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 $381,872,526 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 $35,390,317 and the debt service obligation on the bonds was $16,611,94. 59 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 10: Note 11: Note 12: 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, 2010: Amount Outstanding at Proceeds Maturity Date Interest Rate June 30, 2010 Assessment District No. 97-1 $ 705,262 Assessment District No. 2001-1 2,285,000 Conduit Debt Financing 9/2/2018 4.10%-5.20% $ 380,000 9/2/2015 5.00% - 6.60% 785,000 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, 2010, are $2,790,000. 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. Interfund Receivables and Payables The composition of current interfund receivable and payable as of June 30, 2010, are as follows: Due to Other Funds Non -Major Governmental TOTAL Due From Other Funds General Fund $ 348,071 $ 348,071 Non -Major Governmental 2,143,702 2,143,702 Total: $ 2,491,773 $ 2,491,773 The due to the General Fund and RDA PA#2 Special Revenue Fund and Non -major funds were the results of routine interfund transactions not cleared prior to year-end. &Yr7 CITY OF LA QUINTA NOTES TO FINANCIAL_ STATEMENTS (CONTINUED) JUNE 30, 2010 Note 12: Interfund Receivables and Payables (Continued) The composition of non -current interfund receivable and payable as of June 30, 2010, 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 $ 9,833,714 $ 22,000,000 $ 19,378,966 $ 5,294,572 $ 1,390,419 $ 57,897,671 Redevelopment Agency PA No. 1 Capital Projects - - - - 3,355,081 3,355,081 Non -Major Governmental - 938,085 938,085 Total: $ 91833,714 $ 22,000,000 $ 19,378,966 $ 5,294,572 $ 5,683,585 $ 62,190,837 a) As of June 30, 2010, the amount due to the General Fund from RDA PA No. 1 Debt Service was $ 22,000,000. 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 advances of $16,000,000 loaned to the Redevelopment. Agency require repayments beginning in 2030/31 and 2033 and accrues interest at 7% per annum. b) As of .Rune 30, 2010, the amount due to the General Fund from RDA PA No. 2 Debt Serviced 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, 2010, the General Fund has advanced to the Golf Course fund $5,294,572. 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, 2010, the remaining balance: of the advance for the La Quinta Community Park is $1,417,770. 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, 2010, is $1,937,311, f) 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, 2010, the Civic Center expansion was completed and the amount of the advance was $9,833,714 outstanding. The advance accrues interest that would have been earned by the Local Agency Investment Fund. 61 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 12: Interfund Receivables and Payables (Continued) g) In October 2009, an advance up to $2,033,687 for the Phase 1 of the Corporate Yard from the General Fund to the Street and Park Maintenance Facility Funds was approved. As of June 30, 2010 the amount of the outstanding advance was $935,295. The advance accrues interest at the earnings rate of the City's investment pool fund. h) In October 2009, the La Quinta Housing Authority was created to promote affordable housing in the City. Since the Housing Authority had no funds to carry out its purposes, advances between the Housing Authority and the City or the La Quinta Redevelopment Agency were anticipated. As of June 30, 2010 the outstanding advance between the Housing Authority and the La Quinta Redevelopment Agency was $2,790. The advance accrues interest at the earnings rate of the City's investment pool fund. Note 13: Interfund Transfers TRANSFERS OUT RDA PA #1 General Capital RDA PA #1 RDA PA #2 Non -Major Internal Service Fund Projects Debt Service Debt Service Governmental Funds TOTAL TRANSFERSIN General Fund $ - $ - $ - $ - $ 374,071 $ 1,200,000 $ 1,574,071 Capital Improvement 4,662,453 603,719 - - 8,244,726 293,007 13,803,905 RDA PA #1 Debt Service - - - - 4,438,892 - 4,438,892 ` RDA PA #2 Debt Service - - - - 1,951,399 - 1,951,399 Non -Major Governmental 2,000 - 3,961,932 4,551,399 102,774 - 8,618,105 Total: $ 4.664,453 $ 603.719 $ 3,961,932 $ 4,551,399 $ 15,111,862 $ 1,493,007 $ 30,386,372 ` The following describes the major transfers in and transfers out included in the financial statements: a) $1,695,641 was transferred from the General Fund to the Capital Improvement Fund to transfer 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 the Costco, Kohl's, and the Auto Mall developer. b) $2,000 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. c) $4,438,892 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 and $708,869 was transferred to the Capital Improvement Fund for various capital projects within the project area. d) $603,719 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) $3,961,932 and $1,951,399 was transferred from the RDA Project Area No.1 and No.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. $2,600,000 was transferred from RDA Project Area No. 2 Debt Service Funds to the RDA Capital Projects PA No.2 Fund to fund various capital projects within the project area. 62 CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) JUNE 30.2010 Note 13: Interfund Transfers (Continued) f) $7,828,863 was transferred to Capital Improvement Fund from various non -major funds to fund various capital projects within the City. g) $600,000 from the Equipment Replacement Fund and $600,000 from the Park Equipment and Facility Fund were transferred to the General Fund to provide additional financial resources. 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 Polite 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 12.1221% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. In September 2009, the City contributed $1,338,763 to CaIPERS to pay off the side fund for the Past Service Cost. This amount will be amortized over the next twelve years. The contribution requirement of plan member and the City are established and may be amended by CalPERS. Annual Pension Cost and Net Pension Obligation For 2010, the City's annual pension cost and change in Net Pension Obligation for the year ending June 30, 2010 were as follows: Annual required contribution $ 953,728 Interest on net pension obligation - Adjustment to annual required contribution - Annual pension cost 953,728 Contributions made 2,292,491 Increase (decrease) in net pension obligation (1,338,763) Net pension obligation (asset) beginning of the year - Net pension obligation (asset) end of the year $ (1,338,763) 63 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 14: Defined Benefit Pension Plan (Continued) Three -Year Trend Information for PERS Required Percentage Net Pension Fiscal Year Contributions Contributed Obligation (asset) 6/30/2008 $ 902,098 100% $ 6/30/2009 973,515 100% 6/30/2010 953,728 240% (1,338,763) Note 15: Post -Employment Health Benefits Plan Description The City provides other postemployment benefits (OPEB) through a single -employer defined benefit healthcare plan by contributing on behalf of all eligible retirees $110/month for calendar 2009 and $105/month for calendar 2010, 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. A separate financial report is not available for the plan. Funding Polic The contribution requirements of plan members and the City are established and may be amended by the City, City Council and/or the employee association. Currently, contributions are not required from plan members. There was no contribution made during the 2009-2010 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 Interest on net OPEB obligation 5,397 Adjustment to ARC (4,183) Annual OPEB cost 118,035 Contributions made - (Decrease) increase in Net OPEB obligation 118,035 Net OPEB obligation (asset) - beginning of year 107,944 Net OPEB obligation (asset) - end of year $ 225,979 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2009-2010 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) Contributed (Asset) 6I30/2008 N/A N/A N/A N/A 6/30/2009 $ 116,821 $ 8,877 7.60% $ 107,944 6/30/2010 $ 116,821 - 0.00% $ 225,979 64 CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) JUNE 30, 2010 Note 15: Post -Employment Health Benefits (Continued) 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. The information is as of the latest actuarial valuation. 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 7/1/2008 - $ 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 projected unit credit 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 employer's own investments calculated based on the funded level of the plan at the valuation date, and annual healthcare cost trend rate of 4%. 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, 2010, was twenty-nine years. The number of active participants is 4. 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. 65 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 16: Self Insurance (Continued) Self -Insurance Programs of the Authority General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between police and non -police. Costs are 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 members share of losses under $30,000; (3) losses from $750,000 to $5,000,000 and the associated loss development reserves are pooled based on payroll; (4a) costs of covered claims from $5,000,000 to $10,000,000 are paid under reinsurance policies and are subject to a $2,500,000 annual aggregate deductible (4b) costs of covered claims from $10,000,000 to $50,000,000 are covered through excess insurance policies; (4c) costs of covered claims for subsidence losses are paid by excess insurance with a sub -limit of $25,000,000 per occurrence per member. This $25,000,000 subsidence sub -limit is composed of $10,000,000 in reinsurance and $15,000,000 in excess insurance. The excess insurance layer has a $15,000,000 annual aggregate. The costs associated with 4a, 4b, and 4c 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. 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. 66 CITY OF LA QUINTA NOTES TO FINANCIAL. STATEMENTS (CONTINUED) JUNE 30, 2010 Note 16: Self Insurance (Continued) Environmental Insurance The City 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 the City. 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 $65,426,900. During the past three fiscal years none of the above programs of protection have had settlements or judgments that exceed pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. Note 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 Miles Avenue (the "Site") improved with 80 rental apartment units (the "Housing Development") to National CORE. National CORE, in turn transferred the Site and Housing Development to a limited partnership as a requirement to enter into a 15 year tax credit bond sale. In the future, National CORE is obligated to (1) exercise its option to acquire the Site and Housing Development from the limited partnership at the close of the 15 year tax credit period, as set forth in the partnership agreement, and (2) convey fee title to the Site and Housing Development to the City, as the Agency's successor, on the 55'" anniversary of the permanent loan closing. On July 6, 2009, the permanent loan closing occurred. :AVA CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 18: Note 19: Construction Commitments The following material construction commitments existed at June 30, 2010: Expenditures to Contract date as of June Project Name Amount 30, 2009 Silver Rock Resort Infrastructure Adams Street Bridge Improvements Community Park Land Acquisition Washington St. Apartment Rehabilitation Silver Rock Resort Club House Relocation of Coachella Canal at Silver Rock Silver Rock Resort Entry Feature & Roads Cove Fire Station Phase 1 Maintenance Yard Jefferson St. Landscaping (Vista Grande to Westward Ho) Committed Fund Balances Remaining Commitments $ 21,274,573 $ 13,518 $ 21,261,055 12,031,548 575,553 11,455,995 7,983,438 - 7,983,438 7,300,000 21,196 7,278,804 6,839,264 14,881 6,824,383 6,000,000 42,164 5,957,836 5,436,406 1,225 5,435,181 3,908,665 3,467,258 441,407 2,774,380 1,881,996 892,384 2,274,964 496,403 1,778,561 The City has the following committed fund balance shown on the balance sheet: Committed to cash Flow reserves, Committed to emergency reserve, and Committed to post retirement health benefits. These committed amounts have been approved by Council based on certain percentages and will be used only in the event of Council approval. For the Committed to cash flow reserve, the City established the amount of 8.25% of the Fiscal Year 2010-2011 budget which totals $3,246,881 in the General Fund for the year ended June 30, 2010. For the Committed to emergency reserve, the City established the amount of 35% of the Fiscal Year 2010-2011 budget plus $4,000,000 which totals $17,774,648 in the General Fund for the year ended June 30, 2010. Also the City has committed a portion of their Unassigned Fund balance for the payment in future years of their Post retirement health benefits. For the year ended June 30, 2010 the City has committed $1,258,059 for this purpose. 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, 2010, the Golf Course had an operating loss before contributions and transfers of $583,520. 68 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 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, 2010, the City made $599,898 in reimbursement payments to the owner leaving an outstanding balance of $400,102. 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, 2010, the City made $989,656 in reimbursement payments to the owner leaving an outstanding balance of $3,010,344. The City entered into a transient occupancy tax (TOT) revenue reimbursement agreement on March 1st, 2010, with LQ Hospitality, LLC, the owner of a Homewood 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 $300,000 over a two year period. The agreement terminates when either the $300,000 limit is reached or in 2 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. As of June 30, 2010, the City made $46,342 in reimbursement payments to the owner leaving an outstanding balance of $253,658. Note 22: Transactions with the State of California a. Proposition 1A Borrowing by the State of California Under the provisions of Proposition 1A and as part of the 2009- 10 budget package passed by the California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of property tax revenue, including those property taxes associated with the in- lieu motor vehicle license fee, the triple flip in lieu sales tax, and supplemental property tax, apportioned to cities, counties and special districts (excluding redevelopment agencies). The state is required to repay this borrowing plus interest by June 30, 2013. After repayment of this initial borrowing, the California legislature may consider only one additional borrowing within a ten- year period. The amount of this borrowing pertaining to the City of La Quinta was $1,036,084. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 22: Transactions with the State of California (Continued) Authorized with the 2009- 10 State budget package, the Proposition 1A Securitization Program was instituted by the California Statewide Communities Development Authority ("California Communities"), a joint powers authority sponsored by the California State Association of Counties and the League of California Cities, to enable local governments to sell their Proposition 1A receivables to California Communities. Under the Securitization Program, California Communities simultaneously purchased the Proposition 1A receivables and issued bonds ("Prop 1A Bonds") to provide local agencies with cash proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The purchase price paid to the local agencies equaled 100% of the amount of the property tax reduction. All transaction costs of issuance and interest were paid by the State of California. Participating local agencies have no obligation on the bonds and no credit exposure to the State. The City participated in the securitization program and accordingly property taxes have been recorded in the same manner as if the State had not exercised its rights under Proposition 1A. The receivable sale proceeds were equal to the book value and, as a result, no gain or loss was recorded. b. Delay of State Gas Tax Payments In March 2010, the State Legislature passed legislation delaying a variety of State payments to local agencies in response to anticipated State cash flow problems in fiscal year 2010-2011. AB5 8x contains provisions to delay a portion (approximately 60%) of the payments of State Gas Tax monies for the first nine months of 2010-2011 (July 2010 through March 2011) to be paid no later than April 28, 2011. c. SERAF Shift for fiscal year 2009-2010 and 2010-2011 On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal years 2009-2010 and 2010-2011 to be deposited into the County "Supplemental" Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed to meet the State's Prop 98 obligations to schools. The California Redevelopment Association (CRA) and its member agencies filed a legal action in an attempt to stop these amounts from having to be paid; however, in May 2010 the Sacramento Superior Court upheld the legislation. This decision is in the process of being appealed by CRA and its member agencies. Additionally, the question as to the ability of the State to take resources for these purposes will be considered by the voters in November 2010. The payment of the SERAF was due on May 10, 2010 for fiscal year 2009-2010 and it was made in the amount of $23,582,367. The legislation allowed this payment to be made from any available monies present in any project area(s). Subsequent legislation was passed which even allowed the funding for this payment to be borrowed from the Low and Moderate Income Housing Fund with appropriate findings from its legislative body. Any amounts borrowed from Low and Moderate Income Housing (including any suspended set -aside amounts) are to be repaid by June 30, 2015. If those amounts are not repaid, by that date, then the set -aside percentage to Low and Moderate Income Housing will increase from 20% to 25% for the remainder of the life of the Agency. To accomplish the payment, the Agency utilized a $10,000,000 advance from General Fund Reserves, $10,000,000 that was previously budgeted to be transferred to the Project Area No. 1 Capital Project Fund that was not done, and the remaining $3,582,367 was a transfer from the Project Area No. 1 Capital Project to the Project Area No. 1 Debt Service fund for the payment. No Low and Moderate Income Housings Funds were utilized to make the fiscal year 2009-2010 SERAF payment. 70 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 22: Transactions with the State of California (Continued) It is estimated that the Agency's share of the SERAF shift for fiscal year 2010-2011 will amount to approximately $4,850,687 and this amount will be payable in May 2011 if the appeal and/or the voter question above are not successful. Note 23: Subsequent Event In July 2010, the La Quinta Redevelopment Agency entered into an Owner Participation Agreement (OPA) with an autodealer, Garff Properties -La Quinta, LLC ("Garff') that provides for the Agency to provide a rehabilitation loan to Garff of up to $2,300,000 for the construction of a new dealership facility and rehabilitation of an existing dealership facility. In connection with the OPA, Garff has executed a promissory note which is secured by a deed of trust, and an operating covenant. The loan will be repaid by crediting future sales and property tax increment taxes generated on the site until the cumulative taxes collected equals the loan amount. At that time, the note will be cancelled and the operating covenant will terminate. If, after ten years of operation, a shortfall exists between the revenues collected and the outstanding loan amount, the note will be cancelled and the operating covenant will terminate. Further, if at any time through no fault of the dealership certain future events outside of the dealership control occur the note will be cancelled and the operating covenant will terminate. 71 THIS PAGE INTENTIONALLY LEFT BLANK I:Y: 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. These 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. Congestion Management Air Quality Fund — To account for grant funds related to improving air quality. 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. 73 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 I Fund - To account for the revenues and expenditures related to Proposition I monies. Justice Assistance Grant — To account for Federal Bureau of Justice Block Grant program grant funds, which are used to reduce crime and improve public safety. Housing Authority PA No.1 — To account for the housing activities of the Housing Authority in Project Area 1 which is to promote and provide for quality housing. Housing Authority PA No.2 — To account for the housing activities of the Housing Authority in Project Area 2 which is to promote and provide for quality housing. Low / Moderate Income Housing — Project 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 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 Council through adoption of the annual capital improvement program budget. Transoortation Fund Parks and Recreations Fund Library Development Fund Community Center Fund Street Facility Fund Park Facility Fund Fire Facility Fund — To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City's infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. 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. 74 THIS PAGE INTENTIONALLY LEFT BLANK ro CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 Revenue Funds Federal State Gas Tax Library Assistance SLEBG Assets: Pooled cash and investments $ 248,485 $ $ $ 199 Receivables: Accounts - - - - - Taxes Notes and loans - Accrued interest 91 Prepaid costs - Deposits - - Due from other governments 180,025 483,298 21,048 25,773 Due from other funds - - - - Advances to other funds Restricted assets: Cash and investments with fiscal agents Total Assets $ 428,601 $ 483,298 $ 21,048 $ 25,972 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ $ $ Deferred revenues Unearned revenues Deposits payable Due to other funds 73,873 21,048 Advances from other funds - - ' Total Liabilities 73,873 21,048 , Fund Balances: Nonspendable: Prepaid costs Notes and loans Advances to other funds Deposits Restricted for: Planning and development projects _ Public safety _ 25,972 Community services - 409,425 - Public works 428,601 - Capital Projects _ Debt service Unassigned _ _ _ Total Fund Balances 428,601 409,425 - 25,972 Total Liabilities and Fund Balances $ 428,601 $ 483,298 $ 21,048 $ 25,972 76 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 (Continued) Assets: Pooled 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 Special Revenue Funds Lighting and Indian Gaming Landscaping RCTC Quimby $ - $ - $ - $ 10,364,601 20,130 7,987 84,837 $ $ 20,130 $ 84,837 $ 10,372,588 Liabilities and Fund Balances:. Liabilities: Accounts payable $ $ $ $ Deferred revenues Unearned revenues Deposits payable Due to other funds 84,837 Advances from other funds - Total Liabilities 84,837 Fund Balances: Nonspendable: Prepaid costs Notes and loans - - - - Advances to other funds Deposits Restricted for: Planning and development projects - Public safety - Community services - - 10,372,588 Public works - 20,130 - Capital Projects - - Debt service - Unassigned - - - Total Fund Balances 20,130 - 10,372,588 Total Liabilities and Fund Balances $ $ 20,130 $ 84,837 $ 10,372,588 77 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 Special Revenue Funds Congestion Management Air Quality Art in Public South Coast Fund Public Safety Places Air Quality Assets: Pooled cash and investments $ - $ 22,862 $ 892,719 $ 274,800 Receivables: Accounts - - - - Taxes - Notes and loans - - - - Accrued interest - 18 685 220 Prepaid costs - - - Deposits - - Due from other governments 155,895 13,113 Due from other funds - - Advances to other funds Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 155,895 $ 22,880 $ 893,404 $ 288,133 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ $ $ Deferred revenues Unearned revenues Deposits payable Due to other funds 155,895 Advances from other funds - - - - Total Liabilities 155,895 Fund Balances: Nonspendable: Prepaid costs - - - - Notes and loans - - - - Advances to other funds - - - - Deposits - - - - Restricted for: Planning and development projects - 288,133 Public safety 22,880 - - Community services - 893,404 Public works - - - - Capital .Projects - - - Debt service - - - Unassigned - - - - Total Fund Balances 22,880 893,404 288,133 Total Liabilities and Fund Balances $ 155,895 $ 22,880 $ 893,404 $ 288,133 78 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL_ FUNDS JUNE 30, 2010 (Continued) Assets: Pooled 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 Deferred revenues Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Advances to other funds Deposits Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds CV Violent Development Crime Task Proposition AB 939 Agreement Force 1B $ 1,339,019 $ 198,966 $ - $ 575,344 1,039 153 441 $ 1,340,058 $ 199,119 $ - $ 575,785 $ 5,000 $ $ $ 575,785 199,119 - 5,000 199,119 1,335,058 575,785 1,335,058 - $ 1,340,058 $ 199,119 $ $ 575,785 rK CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 Special Revenue Funds Low/Moderate Justice Housing Housing Income Assistance Authority PA Authority PA Housing PA Grant No.1 No.2 No.1 Assets: Pooled cash and investments $ $ $ $ 7,575,402 Receivables: Accounts 12,844 Taxes 26,768 Notes and loans 3,920,107 Accrued interest 5,059 Prepaid costs - Deposits Due from other governments 12,418 Due from other funds - Advances to other funds 2,791 Restricted assets: Cash and investments with fiscal agents - - Total Assets $ 12,418 $ $ $ 11,542,971 Liabilities and Fund Balances Liabilities: Accounts payable $ - $ $ $ 10,970 Deferred revenues - 1,831,398 Unearned revenues - - Deposits payable - 18,266 Due to other funds 12,418 - Advances from other funds - 1,414 1,377 Total Liabilities 12,418 1,414 1,377 1,860,634 Fund Balances: Nonspendable: Prepaid costs - - Notes and loans - 2,088,709 Advances to other funds - 2,791 Deposits - - Restricted for: Planning and development projects 7,590,837 Public safety - Community services Public works - Capital Projects _ Debt service _ Unassigned - (1,414) (1,377) - Total Fund Balances (1,414) (1,377) 9,682,337 Total Liabilities and Fund Balances $ 12,418 $ - $ $ 11,542,971 80 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 (Continued) Special Revenue Funds Capital Projects Funds Low/Moderate Income Housing PA Parks and No.2 Infrastructure Transportation Recreation Assets: Pooled cash and investments $ 19,678,116 $ 404,728 $ 4,552,226 $ 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 Deferred revenues Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Prepaid costs Notes and loans Advances to other funds Deposits Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 48,145 14,891 15,405 311 3,411 824 - - 6,400 2,143,702 - - - $ 21,907,483 $ 405,039 $ 4,555,637 $ $ 53,611 $ $ $ 28,552 - 1,417,770 82,163 1,417,770 824 - 6,400 21,818,096 405,039 4,555,637 - (1,417,770) 21,825,320 405,039 4,555,637 (1,417,770) $ 21,907,483 $ 405,039 $ 4,555,637 $ m CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 Assets: Pooled 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 Deferred revenues Unearned revenues Deposits payable Due to other funds Advances from other funds Total Liabilities Capital Projects Funds Library Community Development Center Street Facility Park Facility $ $ 1,166,754 $ $ 898 $ $ 1,167,652 $ 1,937,311 1,390,419 1,937,311 1,390,419 Fund Balances: Nonspendable: Prepaid costs Notes and loans - - - Advances to other funds - - - Deposits - - - Restricted for: Planning and development projects - - - Public safety - - - Community services - - - Public works - - - Capital Projects - 1,167,652 - Debt service - - - Unassigned (1,937,311) (1,390,419) Total Fund Balances (1,937,311) 1,167,652 (1,390,419) Total Liabilities and Fund Balances $ $ 1,167,652 $ $ 82 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 (Continued) Debt Service Capital Projects Funds Funds 2004 Low/Mod Redevelopment Financing Fire Facility Bond Agency PA No. 2 Authority Assets: Pooled cash and investments $ - $ - $ 3,048,979 $ 3,890 Receivables: Accounts - - 21,000 - Taxes - - - Notes and loans - - - Accrued interest - - 2,543 Prepaid costs - - - - Deposits - - - - Due from other governments - - - - Due from other funds - - - - Advances to other funds - - 935,294 - Restricted assets: Cash and investments with fiscal agents - 5,569,552 - - Total Assets $ $ 5,569,552 $ 4,007,816 $ 3,890 Liabilities and Fund Balances Liabilities: Accounts payable $ $ $ 25,415 $ Deferred revenues - Unearned revenues Deposits payable Due to other funds - 2,143,702 - - Advances from other funds 935,294 - - Total Liabilities 935,294 2,143,702 25,415 Fund Balances: Nonspendable: Prepaid costs - - Notes and loans - - - Advances to other funds - - 935,294 Deposits - - - - Restricted for: Planning and development projects - - - - Public safety - - - - Community services - - - - Public works - - - - Capital Projects - 3,425,850 3,047,107 - Debt service - - - 3,890 Unassigned (935,294) - - - Total Fund Balances (935,294) 3,425,850 3,982,401 3,890 Total Liabilities and Fund Balances $ $ 5,569,552 $ 4,007,816 $ 3,890 W CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2010 Total Governmental Funds Assets: Pooled cash and investments $ 50,347,090 Receivables: Accounts 81,989 Taxes 41,659 Notes and loans 3,920,107 Accrued interest 38,261 Prepaid costs 824 Deposits 6,400 Due from other governments 996,537 Due from other funds 2,143,702 Advances to other funds 938,085 Restricted assets: Cash and investments with fiscal agents 5,569,552 Total Assets $ 64,084,206 Liabilities and Fund Balances Liabilities: Accounts payable $ 94,996 Deferred revenues 1,831,398 Unearned revenues 575,785 Deposits payable 245,937 Due to other funds 2,491,773 Advances from other funds 5,683,585 Total Liabilities 10,923,474 Fund Balances: Nonspendable: Prepaid costs 824 Notes and loans 2,088.709 Advances to other funds 938.085 Deposits 6,400 Restricted for: Planning and development projects 31,032,124 Public safety 48,852 Community services 11,675,417 Public works 448,731 Capital Projects 12,601,285 Debt service 3,890 Unassigned (5,683,585) Total Fund Balances 53,160,732 Total Liabilities and Fund Balances $ 64,084,206 84 THIS PAGE INTENTIONALLY LEFT BLANK m CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 Special Revenue Funds Federal State Gas Tax Library Assistance SLEBG Revenues: Taxes $ $ $ $ Assessments Intergovernmental 1,108,080 2,082,803 90,818 100,000 Charges for services - - - - Use of money and property 519 819 Developer participation - - Miscellaneous - - - - Total Revenues 1,108,599 2,082,803 90,818 100,819 Expenditures: Current: General government Public safety Planning and development - Community services - 1,415,034 Public works 1,131,354 - Capital outlay - Debt service: Principal retirement - Interest and fiscal charges - 2,258 Total Expenditures 1,131,354 1,417,292 Excess (Deficiency) of Revenues Over(Under)Expenditures (22,755) 665,511 90,818 100,819 Other Financing Sources (Uses): Transfers in - - - Transfers out (63,322) (125,000) (90,818) (104,367) Total Other Financing Sources (Uses) (63,322) (125,000) (90,818) (104,367) Net Change in Fund Balances (86,077) 540,511 (3,548) Fund Balances, Beginning of Year 514,678 (131,086) 29,520 Fund Balances, End of Year $ 428,601 $ 409,425 $ $ 25,972 86 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL. FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Revenues: Taxes 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 Special Revenue Funds Lighting and Indian Gaming Landscaping RCTC Quimby - 966,639 - 104,705 - 1,737,375 52,498 25,479 104,705 966,639 1,737,375 77,977 971,891 971,891 104,705 (5,252) 1,737,375 77,977 (104,705) (1,737,375) (168,570) Total Other Financing Sources (Uses) (104,705) (1,737,375) (168,570) Net Change in Fund Balances (5,252) (90,593) Fund Balances, Beginning of Year 25,382 10,463,181 Fund Balances, End of Year $ $ 20,130 $ $ 10,372,588 87 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 Revenues: Taxes 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 Special Revenue Funds Congestion Management Air Quality Art in Public South Coast Fund Public Safety Places Air Quality 155,895 79,438 116 4,543 1,514 - 16,836 - - 1,000 155,895 116 22,379 80,952 - 22,359 16,125 - 37,300 53,425 22,359 Excess (Deficiency) of Revenues Over (Under) Expenditures 155,895 Other Financing Sources (Uses): Transfers in 2,000 Transfers out (155,895) (31,046) 58,593 (88,851) Total Other Financing Sources (Uses) (155,895) 2,000 (88,851) Net Change in Fund Balances 2,116 (31,046) (30,258) Fund Balances, Beginning of Year 20,764 924,450 318,391 Fund Balances, End of Year $ $ 22,880 $ 893,404 $ 288,133 m CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Special Revenue Funds CV Violent Development Crime Task AB 939 Agreement Force Proposition 1 B Revenues: Taxes $ _ $ _ $ $ Assessments _ _ Intergovernmental - - 31,267 Charges for services - _ Use of money and property 7,000 - 2,956 Developer participation - _ - Miscellaneous _ _ Total Revenues 7,000 34,223 Expenditures: Current: General government - _ Public safety - 195,184 Planning and development 107,633 - Community services - _ _ Public works _ Capital outlay - - _ Debt service: Principal retirement _ _ _ _ Interest and fiscal charges - - - Total Expenditures 107,633 - 195,184 Excess (Deficiency) of Revenues Over(Under)Expenditures (100,633) - (195,184) 34,223 Other Financing Sources (Uses): Transfers in _ Transfers out (10,721) (34,223) Total Other Financing Sources (Uses) (10,721) (34,223) Net Change in Fund Balances (111,354) (195,184) Fund Balances, Beginning of Year 1,446,412 195,184 Fund Balances, End of Year $ 1,335,058 $ $ $ 89 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 Revenues: Taxes 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 Soecial Revenue Funds Low/Moderate Justice Housing Housing Income Assistance Authority PA Authority PA Housing PA Grant No.1 No.2 No.1 $ $ $ $ 9,629,447 84,249 280,021 105,300 84,249 10,014,768 1,414 1,377 1,433,064 1,414 1,377 1,433,064 84,249 (1,414) (1,377) 8,581,704 (84,249) (5,147,760) (84,249) (5,147,760) (1,414) (1,377) 3,433,944 6,248,393 $ $ (1,414) $ (1,377) $ 9,682,337 m CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL. FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Special Revenue Funds Capital Projects Funds Low/Moderate Income Housing PA Parks and No.2 Infrastructure Transportation Recreation Revenues: Taxes $ 5,190,795 $ $ $ Assessments - Intergovernmental 498,682 Charges for services - Use of money and property 263,002 2,039 24,049 - Developer participation - - 79,352 34,790 Miscellaneous 31,250 - 19,546 Total Revenues 5,983,729 2,039 122,947 34,790 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 1,329,025 35,908 - 203,848 7,784 1,568,781 7,784 Excess (Deficiency) of Revenues Over(Under)Expenditures 4,414,948 2,039 122,947 27,006 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 (2,476,949) (4,503) (1,474,859) (2,476,949) (4,503) (1,474,859) - 1,937,999 (2,464) (1,351,912) 27,006 19,887,321 407,503 5,907,549 (1,444,776) $ 21,825,320 $ 405,039 $ 4,555,637 $ (1,417,770) CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 Capital Projects Funds Library Community Development Center Street Facility Park Facility Revenues: Taxes $ - $ - $ - $ Assessments - - - Intergovernmental - - - Charges for services - - - Use of money and property - 5,866 477 160 Developer participation 13,846 2,886 2,795 858 Miscellaneous - - - - Total Revenues 13,846 8,752 3,272 1,018 Expenditures: Current: General government - - - - Public safety - - - - Planning and development - - - - Community services - - - - Public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - Interest and fiscal charges 10,531 - 1,089 Total Expenditures 10,531 - 1,089 - Excess (Deficiency) of Revenues Over(Under)Expenditures 3,315 8,752 2,183 1,018 Other Financing Sources (Uses): Transfers in - - 102,774 - Transfers out (1,834,996) (102,774) Total Other Financing Sources (Uses) (1,732,222) (102,774) Net Change in Fund Balances 3,315 8,752 (1,730,039) (101,756) Fund Balances, Beginning of Year (1,940,626) 1,158,900 339,620 101,756 Fund Balances, End of Year $ (1,937,311) $ 1,167,652 $ (1,390,419) $ - 92 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Debt Service Capital Projects Funds Funds 2004 Low/Mod Redevelopment Financing Fire Facility Bond Agency PA No. 2 Authority Revenues: Taxes $ - $ - $ _ $ Assessments - - _ Intergovernmental - - - - Charges for services - - - 5,327 Use of money and property - 14,464 16,256 675,281 Developer participation 5,505 - - - Miscellaneous - - - - Total Revenues 5,505 14,464 16,256 680,608 Expenditures: Current: General government - 9,394 Public safety - - - _ Planning and development - 618,000 191,327 Community services - - - Public works - - - Capital outlay - - - - Debt service: Principal retirement - - - 2,070,000 Interest and fiscal charges 5,081 - - 4,518,611 Total Expenditures 5,081 618,000 191,327 6,598,005 Excess (Deficiency) of Revenues Over(Under)Expenditures 424 (603,536) (175,071) (5,917,397) Other Financing Sources (Uses): Transfers in - 2,600,000 5,913,331 Transfers out (826,033) (475,892) - Total Other Financing Sources (Uses) (826,033) 2,124,108 5,913,331 Net Change in Fund Balances 424 (1,429,569) 1,949,037 (4,066) Fund Balances, Beginning of Year (935,718) 4,855,419 2,033,364 7,956 Fund Balances, End of Year $ (935,294) $ 3,425,850 $ 3,982,401 $ 3,890 93 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2010 Total Governmental Funds Revenues: Taxes $ 14,820,242 Assessments 966,639 Intergovernmental 6,073,312 Charges for services 5,327 Use of money and property 1,351,580 Developer participation 182,347 Miscellaneous 157,096 Total Revenues 23,556,543 Expenditures: Current: General government 9,394 Public safety 195,184 Planning and development 3,704,199 Community services 1,431,159 Public works 2,103,245 Capital outlay 37,300 Debt service: Principal retirement 2,105,908 Interest and fiscal charges 4,749,202 Total Expenditures 14,335,591 Excess (Deficiency) of Revenues Over (Under) Expenditures 9,220,952 Other Financing Sources (Uses) Transfers in 8,618005 Transfers out (15,111,862) Total Other Financing Sources (Uses) (6,493,757) Net Change in Fund Balances 2,727,195 Fund Balances, Beginning of Year 50,433,537 Fund Balances, End of Year $ 53,160,732 Z] CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE STATE GAS TAX YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 514,678 $ 514,678 $ 514,678 $ - Resources (Inflows): Intergovernmental 953,800 983,595 1,108,080 124,485 Use of money and property 5,400 1,500 519 (981) Amounts Available for Appropriation 1,473,878 1,499,773 1,623,277 123,504 Charges to Appropriation (Outflow): Public works 1,131,354 1,131,354 1,131,354 - Transfers out - 537,840 63,322 474,518 Total Charges to Appropriations 1,131,354 1,669,194 1,194,676 474,518 Budgetary Fund Balance, June 30 $ 342,524 $ (169,421) $ 428,601 $ 598,022 95 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIBRARY YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (131,086) $ (131,086) $ (131,086) $ Resources (Inflows): Intergovernmental 2,549,700 2,549,700 2,082,803 (466,897) Use of money and property 2,800 2,800 (2,800) Amounts Available for Appropriation 2,421,414 2,421,414 1,951,717 (469,697) Charges to Appropriation (Outflow): Community services 1,720,350 1,720,350 1,415,034 305,316 Debt service: Interest and fiscal charges - 4,000 2,258 1,742 Transfers out 125,000 125,000 - Total Charges to Appropriations 1,720,350 1,849,350 1,542,292 307,058 Budgetary Fund Balance, June.30 $ 701,064 $ 572,064 $ 409,425 u m CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FEDERAL ASSISTANCE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ $ $ Resources (Inflows): Intergovernmental 230,000 363,555 90,818 (272,737) Amounts Available for Appropriation 230,000 363,555 90,818 (272,737) Charges to Appropriation (Outflow): Transfers out 230,000 347,730 90,818 256,912 Total Charges to Appropriations 230,000 347,730 90,818 256,912 Budgetary Fund Balance, June 30 $ - $ 15,825 $ $ (15,825) 97 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE SLEBG YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 29,520 $ 29,520 $ 29,520 $ Resources (Inflows): Intergovernmental 100,000 100,000 100,000 - Use of money and property - 100 819 719 Amounts Available for Appropriation 1 99,520 129,620 130,339 719 Charges to Appropriation (Outflow): Transfers out 100,000 129,544 104,367 25,177 Total Charges to Appropriations 100,000 129,544 104,367 25,177 Budgetary Fund Balance, June 30 $ 29,520 $ 76 $ 25,972 $ 25,896 m CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE INDIAN GAMING YEAR ENDED JUNE 30, 20111 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 120,000 120,000 104,705 (15,295) Use of money and property 300 150 - (150) Amounts Available for Appropriation 120,300 120,150 104,705 (15,445) Charges to Appropriation (Outflow): Transfers out 120,300 120,300 104,705 15,595 Total Charges to Appropriations 120,300 120,300 104,705 15,595 Budgetary Fund Balance, June 30 $ $ (150) $ $ 150 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIGHTING AND LANDSCAPE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 25,382 $ 25,382 $ 25,382 $ - Resources (Inflows): Assessments 947,800 947,800 966,639 18,839 Amounts Available for Appropriation 973,182 973,182 992,021 18,839 Charges to Appropriation (Outflow): Public works 979,504 973,182 971,891 1,291 Total Charges to Appropriations 979,504 973,182 971,891 1,291 Budgetary Fund Balance, June 30 $ (6,322) $ $ 20,130 $ 20,130 1[4f: CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE RCTC YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive 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 Original Final Amounts (Negative) 1,970,763 1,737,375 (233,388) 1,970,763 1,737,375 (233,388) 1,970,763 1,737,375 233,388 1,970,763 1,737,375 233,388 101 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE QUIMBY YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $10,463,181 $10,463,181 $ 10,463,181 $ Resources (Inflows): Use of money and property 15,600 40,000 52,498 12,498 Developer participation - - 25,479 25,479 Amounts Available for Appropriation 10,478,781 1O7503,181 10,541,158 37,977 Charges to Appropriation (Outflow): Transfers out 704,366 9,617,963 168,570 9,449,393 Total Charges to Appropriations 704,366 9,617,963 168,570 9,449,393 Budgetary Fund Balance, June 30 $ 9,774,415 $ 885,218 $ 10,372,588 $ 9,487,370 „ 102 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CONGESTION MANAGEMENT AIR QUALITY FUND YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ $ $ - Resources (Inflows): Intergovernmental 1,163,000 155,895 (1,007,105) Amounts Available for Appropriation 1,163,000 155,895 (1,007,105) Charges to Appropriation (Outflow): Transfers out 1,163,000 155,895 1,007,105 Total Charges to Appropriations 1,163,000 155,895 1,007,105 Budgetary Fund Balance, June 30 $ $ - $ - $ 103 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PUBLIC SAFETY YEAR ENDED JUNE 30, 2010 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 BudgetAmounts Actual Positive Original Final Amounts (Negative) $ 20,764 $ 20,764 $ 20,764 $ 200 100 116 16 2,000 2,000 2,000 - 22,964 22,864 22,880 16 2,000 2,000 2,000 2,000 2,000 - 2,000 $ 20,964 $ 20,864 $ 22,880 104 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2010 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 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 924,450 $ 924,450 $ 924,450 $ - 3,800 3,800 4,543 743 33,525 33,525 16,836 (16,689) - 1,000 1,000 961,775 962,775 946,829 (15,946) 36,200 36,200 16,125 20,075 260,000 603,030 37,300 565,730 - 200,000 - 200,000 296,200 839,230 53,425 785,805 Budgetary Fund Balance, June 30 $ 665,575 $ 123,545 $ 893,404 $ 769,859 105 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE SOUTH COAST AIR QUALITY YEAR ENDED JUNE 30, 2010 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Planning and development Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 318,391 $ 318,391 Variance with Final Budget Actual Positive Amounts (Negative) $ 318,391 $ 96,900 96,900 79,438 (17,462) 2,800 1,350 1,514 164 418,091 416,641 399,343 (17,298) 324,582 26,600 22,359 4,241 48,000 345,982 88,851 257,131 372,582 372,582 111,210 261,372 $ 45,509 $ 44,059 $ 288,133 $ 244,074 :, 106 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE AB 939 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, Jule 1 $1,446,412 $ 1,446,412 $ 1,446,412 $ - Resources (inflows): Use of money and property 14,000 5,000 7,000 2,000 Amounts Available for Appropriation 1,460,412 1,451,412 1,453,412 2,000 Charges to Appropriation (Outflow): Planning and development 108,482 151,982 107,633 44,349 Capital outlay 80,000 - - - Transfers out - 205,000 10,721 194,279 Total Charges to Appropriations 188,482 356,982 118,354 238,628 Budgetary Fund Balance, June 30 $1,271,930 $ 1,094,430 $ 1,335,058 $ 240,628 107 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CV VIOLENT CRIME TASK FORCE YEAR ENDED JUNE 30, 2010 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) $ 195,184 $ 195,184 $ 195,184 $ 61,400 - - 1,900 - - 258,484 195,184 1 55,184 - 46,100 205,000 195,184 9,816 46,100 205,000 195,184 9,816 $ 212,384 $ (9,816) $ $ 9,816 108 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PROPOSITION 113 YEAR ENDED JUNE 30, 2010 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, Jane 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 606,885 31,267 (575,618) 2,000 2,956 956 608,885 34,223 (574,662) 609,841 34,223 575,618 609,841 34,223 575,618 $ $ (956) $ $ 956 109 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ $ - $ - $ Resources (Inflows): Intergovernmental 69,416 86,303 84,249 (2,054) Use of money and property - 50 - (50) Amounts Available for Appropriation 69,416 86,353 84,249 (2,104) Charges to Appropriation (Outflow): Transfers out 69,416 86,303 84,249 2,054 Total Charges to Appropriations 69,416 86,303 84,249 2,054 Budgetary Fund Balance, June 30 $ $ 50 $ $ (50) 110 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY PA NO. 1 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ $ - $ - $ - Charges to Appropriation (Outflow): Planning and development 25,750 1,414 24,336 Total Charges to Appropriations 25,750 1,414 24,336 Budgetary Fund Balance, June 30 $ $ (25,750) $ (1,414) $ 24,336 111 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY PA NO. 2 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ $ - $ - $ - Charges to Appropriation (OutFlow); Planning and development 25,750 1,377 24,373 Total Charges to Appropriations 25,750 1,377 24,373 Budgetary Fund Balance, June 30 $ $ (25,750) $ (1,377) $ 24,373 ISM CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LOW/MODERATE INCOME HOUSING PA NO. 1 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,248,393 $ 6,248,393 $ 6,248,393 $ - Resources (Inflows): Taxes 10,833,900 9,623,500 9,629,447 5,947 Use of money and property 293,700 293,700 280,021 (13,679) Miscellaneous - 19,444 105,300 85,856 Proceeds from sale of capital asset 150,000 150,000 - (150,000) Amounts Available for Appropriation 17,525,993 16,335,037 16,263,161 (71,876) Charges to Appropriation (Outflow): Planning and development 2,338,821 1,756,051 1,433,064 322,987 Transfers out 4,478,892 5,228,892 5,147,760 81,132 Total Charges to Appropriations 6,817,713 6,984,943 6,585,824 404,119 Budgetary Fund Balance, June 30 $10,708,280 $ 9,350,094 $ 9,682,337 $ 332,243 113 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LOW/MODERATE INCOME HOUSING PA NO.2 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $19,887,321 $19,887,321 $19,887,321 $ Resources (Inflows): Taxes 5,668,000 5,411,100 5,190,795 (220,305) Intergovernmental 498,200 498,200 498,682 482 Use of money and property 335,000 265,000 263,002 (1,998) Miscellaneous 4,200 29,200 31,250 2,050 Amounts Available for Appropriation 26,392,721 26,090,821 25,871,050 (219,771) Charges to Appropriation (Outflow): Planning and development 1,490,972 1,717,730 1,329,025 388,705 Debt service: Principal retirement 35,996 35,996 35,908 88 Interest and fiscal charges 203,760 203,760 203,848 (88) Transfers out 11,705,921 12,177,388 2,476,949 9,700,439 Total Charges to Appropriations 13,436,649 14,134,874 4,045,730 10,089,144 Budgetary Fund Balance, June 30 $12,956,072 $11,955,947 $ 21,825,320 $ 9,869,373 114 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental - 11,930,113 758,602 (11,171,511) Developer participation - 490,108 52,508 (437,600) Transfers in 27,381,609 87,010,557 13,803,905 (73,206,652) Amounts Available for Appropriation 27,381,609 99,430,778 14,615,015 (84,815,763) Charges to Appropriation (Outflow): Capital outlay - 99,477,324 14,366,561 85,110,763 Debt service: Principal retirement - 248,454 219,230 29,224 Interest and fiscal charges - - 29,224 (29,224) Total Charges to Appropriations - 99,725,778 14,615,015 85,110,763 Budgetary Fund Balance, June 30 $ 27,381,609 $ (295,000) $ - $ 295,000 1§161 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE INFRASTRUCTURE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 407,503 $ 407,503 $ 407,503 $ - Resources (inflows): Use of money and property 100 1,700 2,039 339 Amounts Available for Appropriation 407,603 409,203 409,542 339 Charges to Appropriation (Outflow): Transfers out - 397,576 4,503 393,073 Total Charges to Appropriations 397,576 4,503 393,073 Budgetary Fund Balance, June 30 $ 407,603 $ 11,627 $ 405,039 $ 393,412 fiG: CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE TRANSPORTATION YEAR ENDED JUNE 30, 20101 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 5,907,549 $ 5,907,549 $ 5,907,549 $ - Resources (Inflows): Use of money and property 6,000 20,000 24,049 4,049 _ Developer participation 382,400 115,800 79,352 (36,448) Miscellaneous - - 19,546 19,546 Amounts Available for Appropriation 6,295,949 6,043,349 6,030,496 (12,853) Charges to Appropriation (Outflow): Transfers out 2,246,624 5,699,192 1,474,859 4,224,333 Total Charges to Appropriations 2,246,624 5,699,192 1,474,859 4,224,333 Budgetary Fund Balance, June 30 $ 4,049,325 $ 344,157 $ 4,555,637 $ 4,211,480 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,444,776) $ (1,444,776) $(1,444,776) $ Resources (Inflows): Developer participation 111,500 53,520 34,790 (18,730) Amounts Available for Appropriation (1,333,276) (1,391,256) _ (1,409,986) (18,730) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges 15,000 7,784 7,216 Total Charges to Appropriations 15,000 7,784 7,216 Budgetary Fund Balance, June 30 $ (1,333,276) $ (1,406,256) $(1,417,770) $ (11,514) 118 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CIVIC CENTER YEAR ENDED JUNE 30, 2010 Budgetary Fund Balance, July 1 Resources (inflows): Developer participation Amounts Available for Appropriation Charges to Appropriation (Outflow): General government Debt service: Interest and fiscal charges Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (9,617,167) $ (9,6 77,167) $(9,617,167) $ 140,400 59,700 38,884 (20,816) (9,476,767) (9,557,467) (9,578,283) (20,816) 202,764 202,764 204,362 (1,598) - 92,500 51,069 41,431 202,764 295,264 255,431 39,833 $ (9,679,531) $ (9,852,731) $(9,833,714) $ 19,017 119 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIBRARY DEVELOPMENT YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,940,626) $ (1,940,626) $(1,940,626) $ Resources (Inflows): Developer participation 44,400 21,300 13,846 (7,454) Amounts Available for Appropriation (1,896,226) (1,919,326) (1,926,780) (7,454) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges 19,500 10,531 8,969 Total Charges to Appropriations 19,500 10,531 8,969 Budgetary Fund Balance, June 30 $ (1,896,226) $ (1,938,826) $(1,937,311) $ 1,515 120 CITY OF LA QUINTA ` I BUDGETARY COMPARISON SCHEDULE COMMUNITY CENTER YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,158,900 $ 1,158,900 $ 1,158,900 $ - Resources (Inflows): Use of money and property 11,700 5,000 5,866 866 Developer participation 9,300 4,440 2,886 (1,554) Amounts Available for Appropriation 1,179,900 1,168,340 1,167,652 (688) Budgetary Fund Balance, June 30 $1,179,900 $ 1,168,340 $ 1,167,652 $ (688) 121 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE STREET FACILITY YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 339,620 $ 339,620 $ 339,620 $ - Resources (Inflows): Use of money and property - 500 477 (23) Developer participation 14,700 4,020 2,795 (1,225) Transfers in - 102,539 102,774 235 Amounts Available for Appropriation 354,320 446,679 445,666 (1,013) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges - 4,250 1,089 3,161 Transfers out 2,476,398 1,834,996 641,402 Total Charges to Appropriations - 2,480,648 1,836,085 644,563 i Budgetary Fund Balance, June 30 $ 354,320 $ (2,033,969) $(1,390,419) $ 643,550 122 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PARK FACILITY YEAR ENDED JUNE 30, 2010 Variance with Final Budget 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 Budgetary Fund Balance, June 30 Budget Amounts Actual Positive Original Final Amounts (Negative) $ 101,756 $ 101,756 $ 101,756 $ 1,000 160 160 - 2,800 1,320 858 (462) 105,556 103,236 1O 7 44 (462) - 102,539 102,774 (235) 102,539 102,774 (235) $ 105,556 $ 697 $ $ (697) 123 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FIRE FACILITY YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (935,718) $ (935,718) $ (935,718) $ Resources (Inflows): Developer participation 26,500 8,400 5,505 (2,895) Amounts Available for Appropriation (909,218) (927,318) (930,213) (2,895) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges 9,250 5,081 4,169 Total Charges to Appropriations 9,250 5,081 4,169 Budgetary Fund Balance, June 30 $ (909,218) $ (936,568) $ (935,294) $ 1,274 t 124 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE 2004 LOW/MOD BOND YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July '1 $ 4,855,419 $ 4,855,419 $ 4,855,419 $ Resources (Inflows): Use of money and property 17,500 20,000 14,464 (5,536) _ . Amounts Available for Appropriation 4,872,919 4,875,419 4,869,883 (5,536) Charges to Appropriation (Outflow): Planning and development - 824,000 618,000 206,000 Transfers out 901,740 826,033 75,707 Total Charges to Appropriations 1,725,740 1,444,033 281,707 Budgetary Fund Balance, June 30 $ 4,872,919 $ 3,149,679 $ 3,425,850 $ 276,171 125 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE REDEVLOPMENT AGENCY PA NO. 1 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 44,929,283 $44,929,283 $ 44,929,283 $ Resources (Inflows): Use of money and property 194,500 199,139 196,204 (2,935) Miscellaneous - - 325,000 325,000 Transfers in 10,000,000 - - Amounts Available for Appropriation 55,123,783 45,128,422 45,450,487 322,066 Charges to Appropriation (Outflow): Planning and development 1,076,940 1,175,628 969,116 206,512 Transfers out 6,085,000 42,429,881 603,719 41,826,162 Total Charges to Appropriations 7,161,940 43,605,509 1,572,835 42,032,674 Budgetary Fund Balance, June 30 $ 47,961,843 $ 1,522,913 $ 43,877,652 $ 42,354,739 126 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE REDEVLOPMENT AGENCY PA NO. 2 YEAR ENDED JUNE 30, 2010 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Planning and development Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,033,364 $ 2,033,364 $ 2,033,364 $ 41,400 20,650 16,256 (4,394) - 2,600,000 2,600,000 2,074,764 4,654,014 4,649,620 (4,394) 242,721 323,079 191,327 131,752 3,303,371 3,440,121 475,892 2,964,229 3,546,092 3,763,200 667,219 3,095,981 $(1,471,328) $ 890,814 $ 3,982,401 $ 3,091,587 127 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FINANCING AUTHORITY YEAR ENDED JUNE 30, 2010 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 Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 7,956 $ 7,956 $ 7,956 $ 15,000 15,000 5,327 (9,673) 675,280 675,280 675,281 1 5,913,331 5,913,331 5,913,331 6,611,567 6,611,567 6,601,895 (9,672) 15,800 15,800 9,394 6,406 2,070,000 2,070,000 2,070,000 4,518,611 4,518,611 4,518,611 - 6,604,411 6,604,411 6,598,005 6,406 $ 7,156 $ 7,156 $ 3,890 $ (3,266) 128 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY PA NO. 1 YEAR ENDED JUNE 30, 2010 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes 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 Pass -through agreement payments Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $5,482,142 $ 5,482,142 43,335,700 42,700 4,438,892 53,299,434 508,200 3,936,688 8,164,062 23,920,933 13,961,932 50,491,815 $ 2,807,619 38,494,000 75,000 4,438,892 48,490,034 24,066,767 3,936,688 8,572,395 22,724,933 3,961,932 63,262,715 $ (14,772,681) Variance with Final Budget Actual Positive Amounts (Negative) $ 5,482,142 $ 38,517,789 23,789 94,785 19,785 4,438,892 - 48,533,608 43,574 24,056,133 10,634 3,936,688 8,572,395 - 21,194,350 1,530,583 3,961,932 - 61,721,498 1,541,217 $ (13,187,890) $ 1,584,791 129 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY PA NO.2 YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (3,126,748) $ (3,126,748) $(3,126,748) $ Resources (Inflows): Taxes 22,671,800 21,644,500 20,763,180 (881,320), Use of money and property 140,000 100,000 94,615 (5,385) Transfers in 1,951,399 1,951,399 1,951,399 Amounts Available for Appropriation 21,636,451 20,569,151 19,682,446 (886,705) Charges to Appropriation (Outflow): General government 268,000 255,100 253,227 1,873 Debt service: Principal retirement 120,000 120,000 320,000 (200,000) Interest and fiscal charges 1,956,078 1,956,078 1,956,078 - Pass -through agreement payments 19,253,381 18,291,681 17,516,544 775,137 Transfers out 1,951,399 4,551,399 4,551,399 - Total Charges to Appropriations 23,548,858 25,174,258 24,597,248 577,010 Budgetary Fund Balance, June 30 $ (1,912,407) $ (4,605,107) $(4,914,802) 130 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. 131 CITY OF LA QUINTA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2010 Governmental Activities - Internal Service Funds Park Equipment Information Equipment Replacement Technology and Facilities Totals Assets: Current: Cash and investments $ 1,785,112 $ 1,346,683 $ 765,163 $ 3,896,958 Receivables: Accrued interest 1,332 1,037 631 3,000 Prepaid costs 240 - 240 Total Current Assets 1,786,444 1,347,960 765,794 3,900,198 Noncurrent: Capital assets - net of accumulated depreciation 1,089,316 385,651 14,080,989 15,555,956 Total Noncurrent Assets 1,089,316 385,651 14,080,989 15,555,956 Total Assets $ 2,875,760 $ 1,733,611 $ 14,846,783 $ 19,456,154 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 $ 9,241 $ 79,866 $ 15,634 $ 104,741 - 3,404 - 3,404 9,241 83,270 15,634 108,145 - 8,423 - 8,423 - 8,423 8,423 9,241 91,693 15,634 116,568 1,089,316 385,651 14,080,989 15,555,956 1,777,203 1,256,267 750,160 3,783,630 2,866,519 1,641,918 14,831,149 19,339,586 $ 2,875,760 $ 1,733,611 $ 14,846,783 $ 19,456,154 a See Notes to Financial Statement 1 132 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2010 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 Other Depreciation expense Total Operating Expenses_; Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Gain (loss) on disposal of capital .assets Total Nonoperating Revenues(Expenses) Governmental Activities - Internal Service Funds Park Equipment Information Equipment and Replacement Technology Facilities Totals $ - $ 331,044 $ - $ 331,044 331,044 - 331,044 - 108,322 108,322 92,265 - 92,265 83,830 - - 83,830 15,572 38,613 15,634 69,819 - 111,447 - 111,447 1,975 55,179 - 57,154 234,684 111,152 424,283 770,119 428,326 424,713 439,917 1,292,956 (428,326) (93,669) (439,917) (961,912) 10,642 7,142 6,221 24,005 2,330 - - 2,330 12,972 7,142 6,221 26,335 Income (Loss) Before Contributions and Transfers (415,354) (86,527) (433,696) (935,577) Capital contributions 15,407 - 46,900 62,307 Transfers out (600,000) (893,007) (1,493,007) Changes in Net Assets (999,947) (86,527) (1,279,803) (2,366,277) Net Assets: Beginning of Year 3,866,466 1,728,445 16,110,952 21,705,863 End of Fiscal Year $ 2,866,519 $ 1,641,918 $ 14,831,149 $ 19,339,586 See Notes to Financial Statement 133 CITY OF LA QUINTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2010 Governmental Activities - Internal Service Funds Park Equipment Information Equipment and Replacement Technology Facilities Totals Cash Flows from Operating Activities: Cash received from customers and users $ - $ 331,044 $ - $ 331,044 Cash paid to suppliers for goods and services (193,390) (125,424) (318,814) Cash paid to employees for services (107,460) (107,460) Net Cash Provided (Used) by Operating Activities (193,390) 98,160 (95,230) Cash Flows from Non -Capital Financing Activities: Cash transfers out (600,000) (893,007) (1,493,007) 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 (600,000) (98,892) (53,013) 2,330 (96,562) (53,013) (893,007) (1,493,007) (151,905) 2,330 (149,575) 12,328 7,519 7,465 27,312 12,328 7,519 7,465 27,312 (877,624) 52,666 (885,542) (1,710,500) 2,662,736 1,294,017 1,650,705 5,607,458 $ 1,785,112 $ 1,346,683 $ 765,163 $ 3,896,958 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ (428,326) $ (93,669) $ (439.917) $ (961,912) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 234,684 111,152 424,283 770,119 (Increase) decrease in prepaid expense - (240) - (240) Increase(decrease)in accounts payable 252 79,658 15,634 95,544 Increase (decrease) in accrued liabilities - 397 - 397 Increase (decrease) in compensated absences - 862 - 862 Total Adjustments 234,936 191,829 439,917 866;682 Net Cash Provided (Used) by Operating Activities $ (193,390) $ 98,160 $ $ (95,230) Non -Cash Investing, Capital, and Financing Activities: Capital assets contributed by other funds $ 15,407 $ - $ 46,900 $ 62,307 See Notes to Financial Statement 134 AGENCY FUNDS Agency funds are used to account for assets held by the City as an agent for 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 issuers used to finance sewer improvements. 135 CITY OF LA OUINTA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 Assessment Assessment District No. District No 97-1 2001-1 Totals Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Deposits payable Total Liabilities $ 149,321 $ 402,387 $ 551,708 1,419 12,371 13,790 109 297 406 $ 150,849 $ 415,055 $ 565,904 $ 150,849 $ 415,055 $ 565,904 $ 150,849 $ 415,055 $ 565,904 See Notes to Financial Statements 136 CITY OF LA QUINTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 Balance Balance July 1, 2009 Additions Deductions June 30, 2010 Assessment District No. 97-1 Assets: Pooled cash and investments $ 138,694 $ 65,950 $ 55,323 $ 149,321 Receivables: Taxes 2,396 1,419 2,396 1,419 Accrued interest 157 109 157 109 Total Assets $ 141,247 $ 67,478 $ 57,876 $ 150,849 Liabilities: Deposits payable $ 141,247 $ 64,925 $ 55,323 $ 150,849 Total Liabilities $ 141,247 $ 64,925 $ 55,323 $ 150,849 Assessment District No. 20014 Assets: Pooled cash and investments $ 428,276 $ 200,954 $ 226,843 $ 402,387 Receivables: Taxes 8,900 12,371 8,900 12,371 Accrued interest 498 297 498 297 Total Assets $ 437,674 $ 213,622 $ 236,241 $ 415,055 Liabilities: Deposits payable $ 437,674 $ 203,969 $ 226,588 $ 415,055 Total Liabilities $ 437,674 $ 203,969 $ 226,588 $ 415,055 Totals -All Agency Funds Assets: Pooled cash and investments $ 566,970 $ 266,904 $ 282,166 $ 551,708 Receivables: Taxes 11,296 13,790 11,296 13,790 Accrued interest 655 406 655 406 Total Assets $ 578,921 $ 281,100 $ 294,117 $ 565,904 Liabilities: Deposits payable $ 578,921 $ 268,894 $ 281,911 $ 565,904 Total Liabilities $ 578,921 $ 268,894 $ 281,911 $ 565,904 See Notes to Financial Statements 137 i THIS PAGE INTENTIONALLY LEFT BLANK m 138 STATISTICAL SECTION This part of the City of La Quinta's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Financial Trends Page These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. 126 Revenue Capacity These schedules obtain information to help the reader assess the govemment's most significant local revenue source, the property tax. 146 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. 151 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. 156 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. 159 139 CITY OF LA QUINTA TABLE 1 , Net Assets by Component Last Ten Fiscal Years (acmual basis ofaccounting) 22101 Q 2443 2004 2005 2006 2007 2008 2009 2010 Govenmemal.ohnins: Invested in capital assets, no of toned debt S 217.419,724 195,474,945 225.818,022 249,059,500 733.361,129 253,559,117 3010,220,033 343.019,328 323,669,955 336,459,472 Restrictul 45,438,930 74.156,69) 40,038,313 44,415,966 43,421,957 65,159,623 49,277,895 86,041,189 105,297,168 9Q332.810 Unrestrkted 30,698,622 43025,999 48290000 45,169328 60,361071 86,129,376 106,939,5]9 79,642,102 96,654,981 7]18]433 Total govern.] towno..sots S 293,557,276 312,657,635 314,146,335 338,644,794 33].144,05] 404,848,116 456,437,505 509,702.619 525622,104 509,9]9,5]5 BusNesi-npe tion,"ics: Invested in capiul assets, 42,075.172 42,692,025 42,]]8,015 42,536,608 42,879,482 nn of,dtiled deb S - - - - 41.300,1146 Restricted - - - - - Umestrieted (626,658) (1665646) (2385462) (3109524) (3937,454) (4867848) Total Wsiness-type u,Mt,,s net assets - - - 40.674,188 40,409,526 40,3%563 39,668,491 38,599,154 38,015,634 y Ptimary g.,rnusem Invented in capital rise¢, net of relaad&W S 217,419,724 195,474,945 225,818,022 249,059500 274,661,975 295,634,289 342,912,058 385,797,343 36Q20Q563 f 379,338,754 Restrined 45,438.930 74,156,691 40,038,313 44,415,966 43421,857 65,159,623 49,277,995 86,041,10 105,297,168 96,332.870 Umnatrtoted 30,698622 43,025,999 48.290,000 45,169328 59,734,413 84.463,730 104554,115 76532578 92717527 72,323,585 - Totalprimarygovertunctnnetassets $ 293,557.276 312,657,635 314,146,335 338.644.794 3]],818,245 445,257.642 496,74g068 548,371,110 564,221,258 547,995,209 somee Cityof La Qnim Iw 140 Cf OF UQ1 A T"U2 Chang. in Nel Assen hsrtmFival Vean [acmmlDvis ofaccowungJ F-al Ycm ' 2W1 2002 2W3 2W4 SW3 2W6 2W7 2W8 2W9 2010 Expere Govmmental ac vi .. General govemn<m S 3,146,699 3,261,5I6 32WA62 4,319]]8 3,595,0 4,229,87I 6]4,342 6953.03 7,836,146 34287,068 Public u0,, 5P6628 7,322,532 B,547,W5 10,256,463 8512,875 9061,241 12,n4,10 13472,036 19,716,961 21226,519 Cbmm ,services 940,881 1411,943 1521,825 1646999 1,157,141 1426,033 4,9,453 5.]9],116 14,808,850 15,923,380 pl.-BaMEawelapmem 6,1.6998 7,110,125 19093,80 ],526,9]9 5752,219 5,W6y15 7.736520 35•J23A58 7,317,689 5,173,326 Publrt wmb 5.%k911 fi434239 6,195,759 6,W3OII 9,101,582 IO,W6.315 10511874 1109]526 11,100,833 12,326,n6 • Imerm on long-term hbt 3,961632 7791759 9,555.401 9,65tl]]9 15265.051 15,49 656 15,163422 15,522,t41 14631418 ISI30.603 - - Tmal govmurcnul.......e... 27,9417497 33512174 13 J9212,W9 4J )84294 461291154 56719711 89166050 76,431897 1N,315622 Bminess-W rcprpia GolfC., - 1B]]291 4523,146 4520173 4]61581 4,440546 4.169768 Total b.,..s:gpearnviu. eapemes 1,8]],291 6523, 146 4$20,IA 4,761,M 4,440,546 6,169768 Twlp mq Bovem 1exp es 27,84 749 31,51:174 47,M312 39,212W9 45,262,OR5 50,652200 612J98Ad 92.927631 80,972,443 108,485,3% Fro®amen GOvmurcnnl rc s. • CNtBes 6t arv¢esc Gemilgavmnem 21e1,601 253,891 298,049 339,376 445,661 717.949 60.530 8.328 25,053 21,439 P 1., s.f" 19W434 2544,528 2917,866 4,W4621 4438,115 4, 168,2% ZA591515 2,050492 1,373952 1,10p,491 Plarmio8.rodeveluymrn 71i033 w,098 61127B 662,737 754,938 I,873,676 169,643 134211 138,391 69j91 Cmm. ,sen'iar 122,96. 170,865 MAO 252,6]] 252,501 428,947 387,065 374,092 275,178 230,557 Public wmb 1429,%2 1,316,373 1,5W,225 tM3,993 2,BI5.703 3,021,379 2244,156 1,9W,437 1J08202 1,124,667 01"noltg gan. erd conmbmis 1601716 1699.255 I,]9],031 I,799,503 1.935578 3,603,I73 3,796,M 5.%5,664 10,725,280 15,363,650 Capiul g.. aW mroibun.0 14,375463 11662,424 5160405 RO9013 18591423 13918901 1'1,601131 500W 419 1064]2]0 5,974311 TmlBmmturcntaleaitinm pogam m'enuu Z1915,149 18,21.434 12,5S530 20961050 29,231921 47,732,131 26918,535 60463M1 24,49)826 23904486 Bus es "acry CM,. fm amic'esn G.If Cuune - - 1,091,816 3120,728 1540,148 3,814,233 3,368,135 3,584,M C,a, gnnb aM.00mbutiw 82 Tmal bwi -nye acnnpu arnoes lrtogam _ 10918J6 1,120,728 3340I48 4,166,920 3,369,135 3.586996 Toullmmary gwetvnenl Progam m'enm 21313 L49 IS 212434 12585,360 20,961050 30,325.757 50852,859 30,459283 64630563 21Mt,96 27,489482 ' Immnue� frominm0) f.onmme0l (connnueQ Ironom�<a) fcondnud) I<omwie� (wnnnued) (cominae¢) (zominm� Na G.,-nul actrviees (6526600) 115299,]40) (34911,952) G8,250,959) Qa, 150,A'!3) I,W3,017 i29,A01,1I6 ) (rz?]94,661 I519J00]p f8(594,772 BusStms-tme sstinn. _ O36,328 11402618) (5946611 f1,0]A41p f5B4 ]]2) Taul mt mam•es lon0nua) 165266,E f15299 c40J 3491i 952 IIA 25O959) {14936328) 2IXtb59 'noO5) 130980601) (3839]068) I5],010482) (A099590A) Genoal tn'enues aM mAe cbanges m net rise¢ t Gm mnmul annma. Tax ITrkeery ux<s 1,162,634 I450,196 1SWAM 2198,141 2,579,245 1671,071 499909 6,014305 6,653,191 6,2]8,4]0 Tnx invemem 15,124,183 IB,199,329 2L191U2 24450,337 24,443,112 3516.,9Z9 42583,031 4214,893 36,702, 197 35390,317 hula to 2]]8,583 5093,5A1 Y145,381 5,240,03] 073,5. ],6R0]5 8,896,7I6 8,492,213 ],2]9,3 IJ 6,927388 Tnr-1 angnnguxcs 4249,]53 19671103 40362W 1261,W 4BJ1338 5,417239 5,448,361 5.327,203 1480,467 4,265438 • Fr,.h,, taxes Q%NO 614,696 69054a .95,810 1,185,087 I,644470 1,259,985 1.748,082 1,533,249 1,585427 Business liceve tax. 15Q@6 168,798 186220 191062 251,618 276911 311],032 3l7,011 295304 30.2,223 OlMnaxa 359,284 31 E0N 513.934 675,W9 IJ41,177 1..9,701 972,753 641,705 455,069 461,95] Invcstmcntlrc0me 1179,2. 3,W609] 1353.A68 2,718". 4,33k030 6,319502 11,954,911 10230,09 ],38]$46 1,362.684 Motor veM<Ie in lien. wu.mctN 149,WO 1473217 I,168,091 1.6086151 2453,642 2.740,233 3,291055 3,RO3,647 3,940801 32144)] Gain 004e)on W, of n.,W rims - 121,197) - 3717,470 1,967,291 - 57,346 21,542 2330 ' Mlstlhtrcom 292(06 692691 5138]6 148$612 2397,494 1,943093 2,052266 U20,627 118,56] 4A.116 T-fe,, 141459643 (11]J ZO] (1I6645) Toml gov,-Ial a,t... 31,023115 33,695.21 11, w11 42749119 12,650f16 66 IN726 8000536 79967521 6885]516 64]6860] Bt¢ s-trye a rvines NveamenGrcorrc 59 1S17 4310 1,014 1252 rain'I-)...1, dmPoul.uas _ _ _ _ _ (47921) )amf.s _ 41459 M3 LI37N3 87i,645 Toml bmi-,, adivmc _ 41,459.3 I13]]56 8]6462 I63411) ]10]4 1252 Toul Primary 1m -,n. 31,023115 31 695 242 3641p,fi52 427, 49418 54109]]9 176139482 815e6998 79,924,110 68860630 M,]69,SIR Chnngex in nu assess Guvcmmmwlaminez 24 1965 15 1139531p 108,701, 24,498,459 (15w.737) 67,704,80 lo,S89360 52165,114 16,919,493 115642529) Bminesstvpeaamua - 40674188 12646621 1102963) 16380P21 II Oh9 )]]) (5A352D) Toml primary.... rent 5 24496515 18,395502 1,488,7W 24,498459 39,173451 62440.141 50,]8639] 51,627,042 [5,850,N8 Q6.226W9) r TMt-f, -, I.,]a,d& lf-, lnCrovments rtans(ertetl to tM GutPriae Funtl. Sourc,'. C.I A La Qmnu 141 MY OP IA QIJUTA TAW 3 � U.,A ivNa Ascar - Governmemal Anivitio Las, mF.1Y. S 7 (amual bans ofaomnting) Faeal Yoe 22001 205E 2003 L L 2006 207 2008 7N9 2o1D E.pmsa: S 3.146,699 3241576 3203462 4319,778 3,595,906 4,229,871 6,284342 6,953.073 7,836,146 34j9),Nll Gmmlg cats Public safay 5,776,628 7,522.532 8,547,005 ID,156,463 8,512875 90652" 1?724,100 13,472,036 19,736941 21274,519 940,981 1411,943 1321,925 1.'" 1,157,141 1426,013 4,299,453 5,797,116 14808850 15923380 Cowmniry smica Plamivg ADO M xvpmcvl 6,146,998 ?110,125 19,083,860 7,526,977 5,752,239 5,906915 7,736,520 35323,958 7J17.689 5,03326 PubOc.mhs 5,968,911 6434,239 6,785,754 6,003,013 9,101 582 10,006335 10,511,874 11,097526 11, 100,833 12,526,726 Imnul ev loog-tmn Eebt 5861632 7,791,759 8555401 9,658P9 15,265,05, 15494656 15163422 15,523,441 15631438 15330603 TaW govammnlaT sa-D. axpemo 27,841749 33511,174 4),49)312 1921?0119 43384794 46,129,054 56719711 98,166,050 76431897 104315622 I j Nogam ChG 1 awica: 253,891 3)7,3)6 445663 . 21439 "k saixi, PrbOc a&ry 860,4346DI 2,860,g4 2544,538 917,866 2,91?866 4,004,6ZI 4,438,115 4,168206 168,206 2,659515 59.515 0,49E 2,050,49E 73,95) 13)3952 I,IOU,191 Community amiss 123,960 170.965 205,806 252,677 252501 428,947 387,065 374,092 275,178 250,557 , Plamivg avd develwmm 709,033 565.0E 61 U79 662,D7 754,938 1,873676 169,643 134,211 138,391 69,391 Publiowhs 1,429,942 1316,373 1594,225 1813,993 2,815,703 3021379 2,244,156 1,90043) 1,308,702 1,124,64) 1 Operating B aDa and conhibutima 1,601,716 1699,255 1,)9)031 1,799503 1,935,579 3,603,I73 3,7%6495 5,905,664 10,775290 15.363650 I Capital grata and roohibuliona 14375,463 ll,662,424 5,160,405 12090.143 18591423 33,918,901 17,601,131 50,090,419 10,6472)0 5,9)4311 Total cxxxx.xl s,tt'a'. 21,315149 18,212434 12585,360 20,96i'm 29,233,921 4).732111 26,918535 60461,643 24493926 219D4486 _ progomrnmua Nxt progam rwmue(apames) (6526,600) 05299.)40) (34911,952) 08,25019591 (14150873) 1663,07 429801176) (2]702407 (51938091) (90411136) - : 4 Geveral ea vua and oIbcr chavga iv na aura Tanta - hopmyum 1,162,634 1450,196 1800616 2,198,141 2,579,245 3,6)9,0)9 4,9",051 6,014,305 6,653583 6,278470 Taxlmemmt 15,324,183 18,899329 21191832 24450337 24,443,112 35,168329 42583,031 4?114891 36,702,197 35,M,317 Sala 3,779,583 3,093,598 4,345,581 5,240,037 6,)73,566 7,613075 6,9%.716 8492213 1,279513 6.927388 tax T...' ocavpan<yum 4,249,753 396),003 4036290 4261267 4831338 5,437,238 5448}61 5,327203 448D,467 4,265,438 Fraabisetax 625,790 654,06 690,544 895,810 1,185,087 1,W,x70 1,259985 124808E 1533249 1585,427 I.,." 156,026 168,798 186220 191%2 251618 276917 307,032 317,011 285,304 302223 Busioaa taxn Odber. 359,284 111,024 513,934 675,996 1,141,17) 1049701 8)2.)53 641)05 455,089 461957 Minor vxhideiv lieu,...... M 1496,620 1473217 1,769091 1608,151 2,453,642 2749233 3291,055 3803,64E 3,940,801 3,714,437 lovdmcm irnorrc 3578,106 1006,07 1353968 1i38,505 4336,050 6319502 1I'W'951 10,230,489 ),38),2M 5,362,684 i Gain(I-A) oo ole ofopllal As. - QQ9)) - 3,717,470 196719E - 57,346 21,542 2,330 Mi 11. 292,016 692,691 513876 1,489,612 2397,474 1943091 2,052246 1220,627 118,567 4)),936 T,..fxA - - - (41459643) 41137203) (874645) - - Tdalgmtmmmulaclivitiea 31023,115 33,695,242 )6400652 42,749.418 11650136 66,101)26 80,690536 79967,521 68,857556 64768607 Change iv vn assess- govetuoeunladie0ia 5 24496FW 18,395502 1,488,700 24,498,459 11500,717) 67204803 50899,360 52265.114 16919d85 (15,642.329) Source: City vl la Quima e 142 CITY OF LA QUINTA TABLE 4 Changes in Net Assets - Business -type Activities Last Six Fiscal Years i (accrual basis of accounting) Fiscal Year - 2005 2006 2007 2008 2009 2010 Expenses: Golf Course 1,877,291 ' 4,523,146 4,520,173 4,761,581 4A40,546 4,169,768 Total business -type activities expenses L877,291 4,523,146 4,520,173 4,761,581 4,440.546 4,169,768 Program revenues: Charges for services: Golf Course 1,091,836 2 3,120,728 3,540,748 3,814,233 3,368,135 3,584,996 Capital grants and contributions 352,687 ` Total business -type activities Program revenues 1,091,836 3,120,728 3,540,749 4,166,920 3,368,135 3,584,996 NTheCyo/La Q�ivm rmptememed rFe bmrne„ypeoni�itie, in 2ooa205 FY 785,455) (1,402,418) (979,425 ) (594,66I ) I,072,411 ( ) (584,772) General revenues and other changes in net assets: Investment income - 553 1,817 4,310 3,074 1,252 Gain (loss) on sale of capital assets - - - (47,721) - - ` - Transfers - 164,190 874,645 - - Capital contributions ` 41,459,643 973,013 979,425 - - - Total business -type activities 41,459,643 1,137,756 1,855,887 (43,411) 3,074 1,252 Changes in net assets -business-type activities 40,674,188 (264,662) 876,462 (638,072) 1,0( 69,337) 5( 83,520) The transfer was for land &golf course improvements transferred to the Enterprise Fund. ' This was the first full year of operations for the Golf Course Source: CiNof La Quinm 143 GaeaJ hand: N..,eldable: RWaid ants Nava and bans Advsecw to mM finds coanddd: Cash0twn.- EmaBaeYo..s P.. ocon. ba1N bacfits Capital Psojcs F tiolul purpos. Library Eat , d.'dopsmrt Assi,ad: Continuant, appnopriaswa U."Itd'. Total general Pod All o0er govatmwnal funds: Notspsedeble F".id ca Not. aed loans A&-. to other Rods Oe,oans Beane Phoneme, aM tleuekpn.tt pr jcs Public aafery Cominuniry'et-ea Public wu6 Copinl Pr.j . DGI4 . ,,,aed: commoing appropr.n. UnassieTMd: 1ota1a11o0ten,oastuovnalhoub CRY OF LA QUINTA FtW Fataec. of Govanmmtel Futdt Last Teen F cal Yore (enalified atrvel bass ofaccuombo L 2002 m 2M 2005 20M 2ao3 Zoos LY 2010 8 211 065 226,495 17,515 292,816 507,931 503,642 1i,A4 10.01 12,424 9,030 11672,971 12,521,890 21081,322 28671,093 31,904,659 22,7q%1 23,591329 45,264,966 46,131,692 57,897,671 2,175 149.518 1,03 M,858 5,903 4,825 9,830 9,830 i.gw, W 1900000 1,8m,lm 2,175,000 2608,786 3,041,984 3470,309 3,699,359 3.341,602 3,246,881 9.119,765 9,186,650 10,323,200 11,915,000 15,067,577 16,90,386 19,722524 19,651 824 18,201 948 17,P4,"ll 1,258,059 589,875 lo,gr,058 482,718 2,1WOW 2,144,085 1,000,000 750,000 500,W0 250,000 11,981 46),072 4,967,072 2,321130 1,911,131 1069,661 1319,787 2,257j00 2,835,892 3485,747 1,555,176 12,95P,494 16,995,060 14,261.273 ll.4 ,439 10,699,419 15,197,331 29,27IX6 16,734,016 18,988,053 10,279,823 $ 35624470 40819,603 47,684,683 54,T05,236 61926%7 76,769,124 84,W,520 92452,019 92,327,391 92,030,119 f 3,515 ),98) 7,917 5353 19.197 ),)40 2,861382 2,136,111 2,117,586 2,V3,425 2,117,873 2,112,597 2,081,645 2,076,063 2,067,028 2,088,909 551,038 1,288,863 3,811.874 5336,158 7,061 02) 5,365.097 4,823,Sa3 4,402,213 4321, 119 4,293,166 185,000 1,110 - 4,340 6,4W 6,099,522 8,150,707 7,903,406 )519,862 16,144,465 26,172,191 13.297.481 21 906,749 25,807.752 31,032,124 72,2,19 72,255 40,208 8?1) 154, 115 143,846 15 3,8 19 198,843 243,468 48952 505.2I7 I,043,79 9%,814 1359,723 2,889,245 9,696,895 12.214315 11,406,628 11 387,631 11 675,417 475,226 401,984 3)4,)00 409534 256,881 462,171 1 4,878 309,566 7,539,191 4 ,nl 28,959.009 52,445,043 3g673,421 124658,452 n 99,196,105 92,112,91) 66,225,066 69,626,225 50,556,856 53,123.856 9.%9 4,9%,086 2,273,588 4,093,123 4,605,101 10,298,494 24.30oV0 5,094635 5,490,098 3,8% 2,000 (7,791,60f) (6,118,351) (111,403,485) 00 244 236) (18,801.305) (7,133,230) (7,854,868) (19653,179) (19,339,821) (33,626,%7) 8 31,745,523 64,416,455 57973,112 125,263,451 113,610617 139,220955 11930135 953TIJ46 88101049 69,101,97 1 The i=a c any VunonlY the tauh of IM taauano<of Ile, 2004 Fiwwth, AutMriry IwMe. r In Focal Year 2009�2010, the Ca, mglenuuW GASB 54 abicb chaogN the teponmg eo3uiren ue for ford h Urca m thefilnrcul atatvnnntl. Tka table fuss been nptlated to «Oxt eFc impact 0f GASB 54 not mly F cal Ym 2009-2010 but all fuec peen,0 Source: Ciryofla Quima 144 CffY OF LA QUBJTA TABLE 6 Changes in Fund Balances of Governmental Funds j Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2001 20(12 2003 20M 2005 20M 207 2008 2009 2010 Revenues Taxes S 36,605,534 43,011.931 50,326,811 58,301,082 68,175,347 89,704,947 100,103,324 105,870,933 99,816,072 93,831,918 i Special assessments 782,610 757.619 780259 816,045 825,292 818,526 877,191 909229 927,816 966,639 Licenses and permits 2,057,423 1,857,691 1,982,127 3,096,145 3,226,167 5,145,430 2,788,882 2,107,035 871,167 472,409 Intergovernmental 9,400,340 9,583,451 7,194,521 11,856627 10,242,876 18,585,468 14,803,W1 15,382,135 18,679,355 19,473,076 Charges for services 1,998,589 1,757,70 2,302,759 2,619,578 3402,602 3,367,989 1,821,794 1,334,060 673,779 484,043 Use ofmoney and properly 5,960,995 5,136,398 4,463,219 4,854,728 9,798,356 12,671,662 14,804,348 12,874,926 7,043,646 5,338,679 Contributions - - - - - - - 37,643,190 240,591 395,823 Developer fees 2,592,398 2 298,647 3,021,245 5,718,073 6,091,156 12,473,440 5,310,440 6,537,991 2.243,785 273,739 Other 502,717 584,197 487777 1,359,539 528,903 637,054 412,353 629,471 720,185 608,342 Total revenues 59, 00,606 64,987,678 70554718 88,623817 102,290,699 143,404,516 140,922,303 183,288,970 131216396 121,944668 Expenditures ' Current: Genital govcmmmt 3,275,624 3,1615% 3,344,407 4,099,376 3,970,921 4,644,954 6,150,699 7,367,144 7,230,436 30,220,882 Public safe,} 5,636,154 7,610,308 8,314428 9,672,708 12,364,587 13,029,187 15,685,493 17,181,775 18,946,866 20,116,936 Plarming and development 6,344,764 10,693,374 7,804,294 7,490,421 5,719,373 5,847563 28,994,177 15,374,160 7,261.835 6,028,492 . - Community services 817,460 1,067,837 993,964 1,025,397 1,101,509 1,248,308 4,027,302 5,336,757 4,698,985 4,204,626 Publc works 2,613,928 2,897,312 3,685,050 4,536,589 6,206,769 6,987,014 6,755,507 6,563,494 6,324,055 6,862,887 Capital projects 14,456,314 57,342.978 16,057,578 43,331,919 4g012,387 25,445,550 36420,417 82,883.317 32,363,859 14,514,910 Debt service: Principal ni,uremem 4,510,420 11,453487 2,931,952 3,610,538 3,793,660 4,777,748 5,647,940 5,949,311 6,319,580 6,616,412 r Interest and fiscal charges 5,942,929 7,017,016 9,469,314 13,961,721 14,355,577 15,554,612 11,059,977 15,424,708 15,348,598 15,357,969 Payment o band escrow - - - 1,591,107 - - - Payments under pass -through obli 10,949,381 13,669,1416 17,561,994 21,448,147 25,756,321 35,958,291 36,498,575 42,989,023 42 426,670 38,710,894 Total expenditures 54546,974 114,913074 70,192,981 110,757,923 113.284100 113497227 155240,087 199,069,689 140.920,884 142,634007 Excess (deficiency) of rev cc(wder) expeinfmres 5,353,632 (49,925,396) 361,737 (22,134106) (10993,401) 29,91L289 (14,317,794) (15,780,719) (970,t488) (20789339) Other financing sources (uses): Issuance oftax allocation bonds - 88,000,00) - 26,400,01M) - - - - - - Iss n ner of revenue bonds - - 90,000,000 - - - - - - Psymm m ebond escrow - - (19,955,000) - - - - - - Tramfeos m 17,911,511 64,255590 23,887,256 154,613,662 49,248,081 35,828,335 60,954,576 88,60402 40,502,929 30,386,372 Tremfcrs out (17,911,515) (65,255,590) (23 887,256) (154,613,662) (49,248,091) (35,992,525) (60,954,516) (87,342,608) (40,527,930) (28,893,365) Other debts issued - - - - - - - 2,332,752 - Capitalleases - - - - - - - 182.094 - - Proceeds from sale ofcapital assets - 146,603 - - 3,566,295 8,209,396 124,097 158.061 - - -- Total other financing sources(uses) 87146603 96445-000 8566295 8,045,206 124,097 1,60Y.229 2307751 1,493,007 Net changem fund balances S 5.3:;3,632 37.22I2D7 361,737 74,310,894 S(2427,106 37.956,495 (14.193,687) (14,178,490) (7.396,737) (19,296332) Debt service as a percentage of noncapital r,ceditums 49.1% 54.2% 43.5% 579% 620% 65.5% 6L0% 47.1% 59.0% 47.6% Source. City of W Qwnta 145 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 2001 2,665,520,656 18,712,736 (39,914,784) 2002 3,162,945,116 30,599,753 (50,149,068) 2003 3,789,678,041 32,607,713 (54,726,303) 2004 5,412,382,710 40,940,877 (95,420,075) 2005 6,289,493,552 44,014,548 (113,037,003) 2006 7,856,383,375 72,554,357 (115,071,146) 2007 9,986,151,525 88,740,840 (99,245,721) 2008 11,854,669,637 101,433,002 (89,688,505) 2009 12,410,626,893 113,185,065 (107,777,195) 2010 11,742,665,902 121,272,880 (110,752,890) 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 11,753,185,892 NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: County of Riverside Auditor -Controller TABLE 7 Direct Perent Chanee -0.40% 18.87% 0 42.21 % 16.10% 25.62% 27.67% 18.95% 4.63% -5.34% M 146 CITY OF LA QUINTA TABLE 8 Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency Last Five Fiscal Years (in dollars) Redevelopment Agency Project Area I 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,I26 199,398,233 5,054,706,893 2010 4,925,639,242 36,169,030 (36,077,902) 4,925,730,370 199,398,233 4,726,332,137 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) 2,423,8527690 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 2010 2,641,339,455 66,270,232 (60,340,787) 2,647,268,900 95,182,755 2,552,086,145 Source: County of Riverside Auditor -Controller 147 CITY OF LA QUINTA Once' and Overlapping Property Tax Roes (Rate per 31N of assessed value) lag Five Fiscal Year TVLE9 City Redcvelopmem Redevelopment Non -Project Area Project Area I Project Aura 2 2DO6t 207' 20011t 20091 2010' 2006' 2007a 2008' 2009' 2010" 20W 2W2a 2008a 2009' 2010a D., Ra¢s'. City of La QIN. 00260 0.0360 007W 00506 00506 OWN, 00000 O.ONO 0.0152 0.0036 00000 00000 O.ONO DONO 0.000D Redeveloperem seen, Project Ate. 1 0.Dow OWN 0ONO 0.0000 O.ONO 05830 0.5880 05150 05245 0.5432 OWN 0.0000 owO 01W00 O.NN Redomlopmc..gamey Peoject Area 2 0DODD 0.o000 OWN OWN 0ONO ON00 0SON OWS) O.NN OWN 0280 0.2920 02910 03193 03174 Conaryofaiveaide 0.1960 0.1960 0.1960 0.2586 02586 02639 0.2619 02619 0,2325 025D1 0.2612 0.2617 02617 02516 02530 County Free Literary 00250 0.0250 00250 00294 0.0284 00226 0.0226 0.0226 00222 0,0226 0.0280 0.0280 00280 00280 0,0280 County Structure Fie Proaaaion 0.054D 0.0540 00540 D.0610 00610 00595 00595 00595 0.0595 0.0395 ONO3 00603 00603 D.%03 D0603 Coachella Voley(CV) Unified School 0Oo00 00W0 O.ONO 0.0000 OWN 0 0I20 D0150 0.W20 0.0149 00162 OWN 00000 0.0020 OWN 011000 Desen Satld3 Uoified School 0.4320 04320 04320 03765 03265 00160 0.0140 0.0140 0.0695 0.0568 o20N 0,1980 0.1990 0.IBW 0-1859 Desert Cammuniry College 0.07N 0.0200 0070 0.0782 0.0282 ON30 0.W30 00720 00177 0,0152 0020 0.0410 00410 0.03" 00396 Riveddc County Dflice of Education 00380 00380 0.0380 0,N26 0(426 0.W30 0.0030 00180 0.0093 0.027 00230 0.0220 00220 D0210 00210 Riverside County Regional Park & Open Space O N40 O.ONO 0 ONO O.NN O.ONO OWN O.ONO 00030 0 DOW 0.000 OWN O.ONO ow') O.OWO O.DON CV Public Cememry 0.0032 0W32 0W32 O.N35 0.0035 OWN 0Who 0ONO 0,0008 0.0002 0(0W O.00N 0o" orow 0.0000 IN Mosquito 00127 00122 00122 0.0142 D0142 00120 00120 00120 Dol 12 0.0111 00150 00140 00140 0.0141 0,0141 DaeetR¢rcatlon Damn, 0.0192 00192 00192 00215 00215 ONIO 0.0020 0.0010 000" 0.0014 ONO 00060 0WOO 0.0053 0W53 CV Water DROct 00250 00250 00250 00294 00284 0.0130 0.0130 00010 00123 00120 00720 0.0260 002W 0.0752 0D753 CV Resource Coeaeyeram 0Not 0ON3 0ON3 0.W04 O.00od QNN O.NN 0.0130 00001 0000 OWN DNoo DOM OWN 0.0000 CVWD Dinner l Debt Service 00118 00118 00118 0.0000 0ONO 0OND OOWO 0.0000 000D0 O.ONO DOOM Owl) 0ONO OWN 0&NO CVWD Stamm Water Unit 0.0320 00320 0.040 0030 00JO ONIO ONIO ODNO OOD00 O.ONO 0N10 ON10 0Nt0 O.WOO 00000 Tonal Diect Rate 0.9992 0.9992 0.9992 1 wo 1.0000 1 D000 low LOON I ONO 1.0000 10000 I ONO low I.00W I.ON Tax Rate Are. 020-05 020-W5 020 W5 020-WS 020-005 020-015 020-015 020-099 020089 020-089 020144 010.144 020-1aa 020144 02O-t44 O cch,ung Rates'' City of La Qom. - Counry of Rivoine Rlvenide County Office of Ed.... %-ale County Pennon Obl"non ' Desert Samoa Unified 00767 00261 00799 00299 0.0811 00762 00761 00)56 0.07" 00811 0.0267 00161 00256 00999 0,0911 Coachella Valley Unified School District Coachella Valley Water ounce ON42 0.01320.0462 004" 4.06W 0,0199 00208 0.0484 0.04" 00660 0M42 00332 ON84 00464 0,0660 Coachella Valley Recreation & Park Diamll Deaen Comm College Dinner 00199 0.0199 0.0199 0009 002N 0.0208 00199 0.0199 00199 002N 00199 00199 0.0199 0.01" 0.0200 Total Ovalapping Rare 0.1409 0.1293 0.1461 0. 1462 0.1621 01175 0.1169 0.1440 0.1462 0.1691 0. 1409 0.1293 0.1440 0. 1462 0,1621 Trust Diem and OverUppNg Rate 1.1401 11285 1.1453 1.1462 IA621 1.1175 1.1169 1.1440 1.1463 1.1671 1.1409 1.1293 1.1440 1.1462 1.1671 NOTE - In 197t, CAbor is ecru posh Popminm 13 v1tie6 seu be lanal ur rare o s I W 1.. bard ..a-.1 du¢t mnn. .. I OOY. a xbuN W all uunp aBaanu fu orm an, ruhjrtr peymy roisee vitbin. Source Counryof Riverside Audimr Connoller's ORtce Duect are hum Tax Ram Ama (TRA) 020-059 provided by Hot Caren & Cone and ovedapping debt roes from Califomia Mcomipal Smlgks a Due,, may Ialren from all von -RDA TRA's provided by O e Count, of Rrvaelds and do not include ERAF deductions and over lapping rates p.... ded by Califomu Municipal Statistics Direct rate.ken ham an..ary . by the City of La Quetta Finance Depanmem gaff of all TRA's in the Project area and do on inhade State ERAF deductions and overlapping rates Intruded by California Municipal Situates a Omur ins taken from naln of Or,TRA in the Pmjecl a and do not include State ERAF deductions and .vlzpping roes loo,cl d bl Califomia Municipal Satistics ' Oved.ppmg ra.s are based upon a single as rare area only. F 148 CITY OF LA QUINTA TABLE 10 Principal Property Taxpayers Current Year and Nine Years Ago (in dollars) 2010 2001 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 $ 204,496,893 1 1.74% 228,137,968 1 8.63% TD Desert Development 107,930,953 2 0.92% 36,130,189 2 1.37% MSR Resort Golf Course 98,061,022 3 0.83% - - East of Madison LLC 67,038,913 4 0.57% - - Walmart Real Estate Business Trust 50,781,966 5 0-43% - - Coral Option 1 LLC 42,590,434 6 0.36% - - ND La Quinta Partners 41,789,035 7 0,36% - - Griffin Ranch 38,378,266 8 0.33°% - - WRM La Quints 37,778,949 9 0.29% - - Village Resort 34,485,244 10 0.29% - - Quarry at La Quinta - - 20.544,413 3 0.78% Country Club Properties - - 16,323.124 4 0.62% Eagle Hardware and Garden Inc. - - 16,142,128 5 0.61% Reilly Homes Madison - - 14,652,580 6 Q55% Advanced Development Corporation - - 14.379,156 7 0.54% Brookfield Heritage Inc - - 13.529,591 8 0,51% M & H Realty Partnership II - - 13,279,041 9 0.50% Mery Griffin Living Trust - - 12,763,836 10 0.48% $ 723,331,675 6.12% 385.882,026 14.59% NOTE :The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: HdL Coren & Cone 149 CITY OF LA QUINTA TABLE 11 Property Tax Levies and Collections Last Five 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% 2010 78,621,410 80,651,874 102.58% 434,643 81,086,517 103.14% NOTE: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies. 150 CITY OF LA QUINTA Ratios of Outstanding Debt by Type Last Five Fiscal Years (in dollars) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended ' 2006 2007 2008 Governmental Activities Reimbursement Agreement Compensated Absences Capital lease USDA I,. Provident Savings Iran ' Due to Coachella Valley Unified School District Due to County of Riverside Developer Agreement Tax Allocation Bonds Project Area I Tax Allocation Bonds Project Area 2 2004 Local Agency Revenue Bonds City Hall Lease Revenue Bonds Unamor o iff Discount and Issuance Costs Total Governmental Business -type Activities Capital Leases Total Business -type activities Total Primary Government Population - State Department of Finance January I Number of Households Median household Income Percentage of Personal Income Debt Per Capita TABLE 12 Fiscal Year Ended Fiscal Year Ended 2009 2010 $ 328,311 S 278,311 S 228,311 S 178.311 5 128,311 608,266 734.055 829,227 919.100 1,002,601 - - - 149,169 114,583 - - - 751,754 741,171 - - - 1,556,283 1,530,958 5,186,627 4,431,178 3,675,731 2,874,653 2,072,965 1,850,000 1,750,000 1,600,000 1,400,000 1,200,000 776,030 643,539 511,048 343,814 174,584 141,785,000 139,145,000 136,350,000 133,390,000 130,255,000 6,130,000 6,025,000 5,915,000 5,800,000 5,690,000 89,265,000 87,745,000 86,175,000 84-560,000 82,890,000 6,245,000 5,900,000 5,540,000 5.160,000 4,760,000 (877,230) (877,230) (841,087) (804,944) (768,801) 251,297,004 245,774,853 239,983,230 236,278,140 229,791,372 1,090,602 825,848 681,048 285217 54,543 1,090,602 925.848 681.048 285.217 54,543 $ 252,387,606 $ 246,600,701 S 240,664,278 S 236,563,357 5 229,935,915 38,340 41,092 42,958 43,778 44,421 18,762 20.I76 21,958 21.355 21,699 S 65,906 $ 67,754 $ 74,683 S 76,227 S 90,124 20.41% 18.04% 15.30% 14.53% 11.75% $ 6,583 S 6.001 S 5,602 $ 5,404 S 5,174 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements - ' The debt service payment for the 2004 tease Revenue Bonds are made from Redevelopment Project Area I ne 2 low & moderate income tax increment. 151 CITY OF LA QUINTA TABLE 13 Ratio of General Bonded Debt Outstanding Last Five 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 ' Household Income 2006 6,245,000 89,265,000 147,915,000 243,425,000 3.12% $ 3,694 2007 5,900,000 87,745,000 145,170,000 238,815,000 2.39% $ 3,525 2008 5,540,000 86,175,000 142,265,000 233,980,000 1.97% $ 3,133 2009 5,160,000 84,560,000 139,190,000 228,910,000 1.84% $ 3,003 2010 4,760,000 82,890,000 135,935,000 223,585,000 1.90% $ 2,481 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 152 CITY OF LA QUINTA TABLE 14 Direct and Overlapping Debt June 30, 2010 City Assessed Valuation $ 4,474,767,610 Redevelopment Agency Incremental Valuation 7,278,418,282 Total Assessed Valuation $ 11,753,185,892 - Source: Riverside County Auditor Controller Estimated Share of Percentage Outstanding Overlapping Applicable Debt 6/30/10 Debt Overlapping Debt Repaid with Property Taxes And Assessments: Desert Community College District 8.105% $ 323,954,507 26,256,513 Coachella Valley Unified School District 34.620% 115,202,921 39,883,251 Desert Sands Unified School District (DSUSD) 7.605% 278,387,325 21,171,356 Coachella Valley County Water District I.D. No. 55 86.023% 3,730,000 3,208,658 Coachella Valley County Water District I.D. No. 58 6.536% 1,755,000 114,707 DSUSD Community Facilities District No. 1 100.000% E820,000 1,820,000 City of La Quinta 1915 Act Bends 100.000% 1,165,000 1,165,000 Coachella Valley Water District Assessment District No. 68 86.247% 2,110,000 1,819,812 Total overlapping debt repaid with property taxes 728,124,753 95,439,297 Overlapping Other Debt including Certifications of Participation (COP) Riverside County General Fund Obligations 1.827% $ 736,427,761 13,454,535 Riverside County Pension Obligations 1.827% 375,100,000 6.853,077 Riverside County Board of Education COP 1.827% 7,240,000 132,275 Coachella Valley Unified School District COP 34.620% 51,680,000 17,891,616 DSUSD COP 7.605% 65,970,000 5,017,019 Coachella Valley County Water District I.D. No. 71 COP 11.790% 4,025,000 474,548 Coachella Valley Recreation and Park District COP 13.466% 2,400,000 323,184 Total overlapping other debt 1,242,842,761 44,146,254 Total overlapping debt $ 1,242,842,761 139,585,551 City direct debt 229,835,915 Total direct and overlapping debt S 369,421,466 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 153 CITY OF LA QUMTA Legal Debt Margin Information Lsst Tar Fiscal Years TABLE 15 2001 L 200 2M ZIM 2M 244Z 2003 M M Assessed valuaboc f 2,644,318,608 3,143,395,801 3.767$59,451 5,357,903,512 6,220,471,097 7,90,866,586 9,975,646,644 11,966,414,134 12,416,034,763 11,153,185,892 Debt limir pror.oca, 15% 15% 15% 15% is% IS. 15% 15% 15% 15% Debt limn 396,642,791 4]1,509,3)0 565,133,918 803.685,527 933,020,665 1,172,079,988 14%,346,991 1,)99,962,120 1,863405,214 1,263,977,884 Total net deb applicable to limit General obligition bond - Legal debt margin S 396,64),)91 471,509,510 565,133.918 803,685,527 933,0?0,665 1,172,079,998 1,496,346,997 1,779,962,120 1,862,405,214 1,762,977.894 Total debt applicable to the lima u apeecam., of debt to. 00% 0.0°. 00% 0014. O.M. 00% 0.0% 0.W 0.M. 00% Section 43WS ofthe Government Code ofthe State ofCalifomu lam at the amount of indebtedness for pubf impmvemcrosto 15%ofthe guessed valumaonofall read and 1110nal property ofthc Chy. The Cary of La Q... has no gmoral bonded indebtediio. Smote: City of La Quinu Finanu Deparunrnt based upon NC Assessed valuation received Oom Nc County of Riverside Auditor Controllers Once 154 CITY OF LA QUINTA TABLE 16 Pledged -Revenue Coverage Last Five Fiscal Years (In Dollars) Tax Allocation Bonds - Project Area 1 Fiscal Year Ended Tax Less: Other Net Tax Debt Service June 30 Increment Debt Payments Increment' Principal Interest Coverage' 2006 36,506,201 20,638,731 15,867,470 2,500,000 7,805,905 1.54 2007 42,029,503 20,820,149 21,209,354 2,640,000 7,659,900 2.06 2008 43,476,312 25,383,713 18,092,599 2,795,000 7,500,553 1.76 2009 40,519,380 25,046,356 15.473,024 2,960,000 7,330,188 1.50 2010 38,517,789 47,006,738 ° (8,488,949) 3,135,000 7,144,062 (0.83) Tax Allocation Bonds - Project Area 2 Fiscal Year Ended Tax Less: Other Net Tax Debt Service June 30 Increment Debt Payments Increment) Principal Interest Coverage 2006 19.849,893 17,325,411 2,524,482 100,000 319,168 6,02 2007 20,777,158 18,553,875 2,223,283 105,000 314.785 5.30 2008 23,087,750 20,929,512 2,158,238 110,000 310,135 5.14 2009 22,783,714 21.042,814 1,740,900 115,000 305,184 F14 2010 20,763,180 19.373,073 1,390,107 I20,000 299,550 331 2004 Local Agency Revenue Bonds Fiscal Year Ended Tax Less. Other Net Tax Debt Service June 30 Increment' Debt Payments Increment Principal Interest Coverage 2006 14,089,024 - 14,089,024 735,000 4,436,981 2.72 2007 15,701,664 - 15,701,664 1,520,000 4,402,909 2.65 2008 16,641,016 - 16,641,016 1,570,000 4.356,806 2.81 2009 15,825,773 - 15,825,773 1,615,000 4,304,994 2.67 2010 14,820.242 - 14,820,242 1,670.000 4,243.331 2,51 Local Agency Revenue Bonds (City Hall Project Fiscal Year Ended Lease Less. Other Net Lease Debt Service June 30 Revenue' Debt Payments Revenue Principal Interest Coverage 2006 680,575 - 680,575 330.000 350,575 1,00 2007 678.865 - 678.865 345,000 333,865 1.00 2008 675,880 - 675,880 360,000 315.880 1.00 2009 676.450 - 676,450 380.000 296,450 1.00 2010 675.280 - 675.280 400.000 275.280 1,00 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Tax increment has been reduced by other debt payments, which may or may not be subordinated to Tax Allocation Bonds P Lease revenues consist of payments from the City General Fund, Civic Center Development Impact Fee Fund and the Redevelopment Agency Capital Projects Fund ' Tax increment revenues from bah Project Area 1 and Project Area 2 Low & Moderate Income Funds are used to pay the annual debt service payments. ° The State of California w,sessed the La Quinta Redevelopment Agency a supplemental educational relief augmentation fund payment of $23,582,367 in FY 2009/2010 which was paid from Project Area I tax increment revenues. This payment was funded by a S 10 million loan from the General Fund to the Agency. S 10 million from the Debt service Fund and 53,582,367 from the RDA Project Area I Capital Projects Fund- If this payment would not have been made the coverage ratio would have been 1.47. 155 CITY OF LA QUINTA Demographic and Economic Statistics Last Five Calendar Years TABLE 17 Calendar Calendar Calendar Calendar Calendar Year Year Year Year Year 2006 2007 2008 2009 2010 City Land (Sq Miles) (3) 35.10 35.10 35.31 3531 35.31 Population (1) 38,340 41,092 42,958 43,778 44,421 Median Household Income (in dollars) (4) $65,906 $67,754 $74,683 $76,227 $90,124 - NumberofDwellingUnits (3) 18,762 20,176 21,058 21,355 21,699 Persons per Household (3) 2.855 2.846 2.851 2.851 2.865 Average Income per person per household $23,084 $23,807 $26,195 $26,737 $31,457 Labor Force - (2) 14,500 15,300 15,200 14,800 14,600 Employment (2) 14,100 14,900 14,600 13,700 13,500 Unemployment Rate (2) 2.76% 2.61% 3.95% 7,43% 7,53% Median age (4) 36 36.4 36A 364 42.2 Sources: (1) State of California Department of Finance - January 1 of earh year (2) State of California Economic Development Department website (3) City of La Quints Building & Safety and Community Development Departments (4) Desert Wheeler's Newsletter City Overview through 2009; Hdl-Coren & Cone Companies thereafter (4) Desert Wheeler's Newsletter City Overview through 2009; HdLCoren & Cone Companies thereafter 156 TABLE 18 CITY OF LA QUINTA Principal Employers Current Year and Nine Years Ago - 2009-2010 2000-2001 Percent of Number of Total Number of Employer Activity Rank Employees Employment Employees Rank La Quinta Resort & Club Hotel & Golf Resort 1 1,500 11.11% 1,500 1 PGA West Golf Resort 2 1,200 8.89% 1,100 2 Desert Sands Unified School Distict Government 3 764 5.66% 550 3 Wal-Mart Super Center Retailer 4 350 259% 250 4 Home Depot Retailer 5 210 1.56% 180 5 Hideaway Golf Resort 6 150 1.11% - Lowe's Home Improvement Retailer 7 150 1.11% 150 6 ND La Quinta Partners LLC Real estate Developme 8 150 L 11 % Stater Brothers Grocery Store 9 130 0.96% 126 7 Tradition Golf Club Grocery Store 10 101 0.75% 103 8 Vons Grocery Store - - I03 8 Ralphs Grocery Store - - 100 9 City of La Quinta Government 13 - 73 10 Rancho La Quinta Golf Resort - 150 6 Total employment listed 4,705 34.85% 4,385 Total City Employment - July 1 13,500 11,600 "Total Employment" as used above represents the total employment of all employers located within City limits with over 100 employees Source. 2009-2010 Willdan Financial and 2000-2001 City of La Quinta CAFR 157 CITY OF LA QUB4TA Full-time City Employees by Function Last Six Fiscal Years Fiscal Year Fiscal Year Fiscal Year Ending Ending Ending June 30 June 30 June 30 Function 2005 2006 2007 Administration 8.00 9.00 10.00 City Clerk 5.00 5.00 5.00 Finance 8.00 9.00 9.00 Community Services 8.00 10.25 10.25 Building and Safety 21.00 22.00 24.00 Planning and Development 9.00 12.00 12.00 Public Works 23.50 26.25 26.25 Golf Course 0.50 0.50 0.50 Total 83.00 94.00 97.00 Source: City of La Quinta NOTE: The City of La Quinta contracts with the County of Riverside for Police Services and with the California Department of Forestry through a contract with the County of Riverside for Fire Services. In addition the City -owned Golf Course is operated by Landmark Golf. These positions have not been included as these positions are not City employees. TABLE 19 Fiscal Year Fiscal Year Fiscal Year Ending Ending Ending June 30 June 30 June 30 2008 2009 2010 12.00 13.00 14.00 6.00 6.00 6.00 9.00 9.00 9.00 11.25 10.25 10.25 25.00 25.00 24.00 12.00 10.00 9.00 28.25 27.25 26.25 0.50 0.50 0.50 104.00 101.00 99.00 158 CITY OF LA QUINTA Operating Indicators by Function Last Five Fiscal Years TABLE 20 2006 2007 2008 2009 2010 Finance: Number of Active Business Licenses 3,208 3,424 3,690 3,523 3,428 - - Number of Animal Licenses Processed 892 1,022 1,272 1,609 1,768 Number of Accounts Payable Checks Processed 4,696 4,722 4,840 4,819 4,393 Number of investment purchases 39 73 64 36 32 Par value of investments $327,417,000 $392.729,000 $424,500,000 $229,969,000 $267,213,000 Number of cleared checks 5,081 4,837 5,501 5,269 4,984 Number of outgoing bank wires 202 158 136 91 75 Public Works: Encroachment permits issued 304 218 110 132 78 Request for services 618 419 1152 1931 1306 Building & Safety: Perils: Single family Detached 1,044 526 297 129 56 Single family Attached 227 38 0 6 12 Residential Pool 866 612 331 207 152 WaNFence 1,502 963 583 299 178 Other 1,607 1,404 1,121 908 790 Total Permits 5,246 3,543 2,332 1,549 1,188 Code Compliance: Animal Control Incidents Handled 1,901 687 2,920 3,630 3,984 - Vehicle abatements 909 296 351 346 214 Garage Sale Permits 1,190 1,444 1,519 1,535 1,663 Weed abatements 141 76 117 97 125 Nuisance abatements 1.611 2,032 2,142 3,130 2,340 Community Services: Library activities: Library Volume 42,050 44,981 66,124 81,124 89,060 Library books checked out 55.002 99,659 117,738 215.843 259,711 Library Cards Issued 5,550 5,325 3,675 3,684 3,547 Number of School Children Visiting Library 745 260 841 1,036 772 Library Volunteer Hours 1,891 1,583 1,951 2,342 2,723 Senior Center. Number or visits 14,305 12.955 14,013 15,739 20,326 Senior Center Volunteer Hours 3,481 4,192 3,332 2,583 3,131 Recreation activities. Participants: Leisure Classes 1,373 1,192 990 1,140 1,437 Special events 4,668 1.809 8.109 11,053 8,795 Adult Sports 3402 6,827 8.550 10,806 13,364 Golf course: Golf rounds played 38.934 40.548 40,516 39,150 43,779 Average S Green fee 71.12 76.97 81 09 76J 3 71.59 Planning and Development; Number of residential units approved 1,063 534 338 too 255 Commercial square footage approved 533,726 124,821 342,502 390,097 6,200 Source: City of La Quinta 159 CITY OF LA QUINTA TABLE 21 Capital Asset Statistics 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 2006 2007 2008 2009 2010 Public works: Streets (miles) 118.40 122 - 127 127 127 Bikepaths (miles) 22.00 22 22 22 22 Streetlights 73 85 85 261 265 Traffic signals 44 45.25 45.25 49 50 Traffic Signs 2,799 2,845 2,895 2,899 2,909 Bridges 12 12 12 12 12 Parks and recreation: Parks 12 12 13 13 13 Park Acreage 207 207� 209 209 218 Undeveloped Park Acreage 40 40 40 40 40 Senior Center 1 l 1 I I Museum I I - I I 1 Library 1 I I I I Golf Course: Municipal golf courses I 1 I Source: City of La Quinta In Fiscal Year ending 2009 street lights at intersections were included for the first time iDIII CITY OF LA QUINTA TABLE 22 Schedule of Insurance in Force • June 30, 2010 Company Name Policy No her Coverage Limits Term Premium Hartford 72BPEEW0254 Employee Dishonesty, $1,000,000 12/3/09- 12/3/10 $3,013 Forgery, Computer Fraud Lexington 20412656 All Risk Property Insurance 63,806,700 7/01/09 - 7/01/10 50,433 Including Auto Physical Damage, Terrorism, Boiler & Machinery (Excluding Earthquake) Lloyds 750020221-L-00 Earthquake/Flood 20,000,000 2/07/10-2/07/I1 125,951 Real & Personal Property • Including Contingent Tax Interruption ' California Comprehensive General $50 Million 7/01/09 - 7101/10 365,209 Joint Powers Liability Single Limit per Occun ence • Insurance Authority California Worker's Compensation 10,000,000 7/01/09-7/01/10 106,288 Joint Powers Insurance Authority Alliant PEC0011896301 Pollution Liability 10,000,000 7/01/08-7/01/11 19,215 161 THIS PAGE INTENTIONALLY LEFT BLANK 162 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item B Meeting Date: December 8, 2010 ITEM TITLE - Month End Cash Report - November, 2010 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. RECOMMENDATION: Information item only. John M. Falconer, Finance Director °i' W � O Q tO w Q tO MnQnm m mommm O m Q m 10 O O m O (V f0 O N C W OI W W O Q m fO N Q Q W Q N 0 W m m m Q N Q r CJ Q F Q N O N W O m Ci m N W V w Q O N N C) Q m O N W 6,6 M a N N m m O) v v g W Q m N W N N^ eQ- 01 N N M fO [O N w N m N N N $"o c o 0 O o pp QQ m m momoC) O N N O1 m O m m m m m m N, °i n E O O O m m m Y m m Y] N Z N O O (m0 1mO V W (V O m > O O _ O N N c4 V vi N y0. C a d m n m N N CJ Q VI n 0 N 0 v�o oO O O 0 O o O m m O m O t7 N m m CNj m N N d 0 Cl O m N t0 Q O of W n 0 m m m m N Q p Ci U o m m m rn m o d m IQQ� o ai W o o O m 0 N m m m n O N N W n O O N N p N N N uj N UI N N W 0 W 6 m m a o o W O m m 6 n 05 M �m N N N m N o 20o W OI LL d O Q OI O O O O O d O W m ml o 0 0 0 0 LL m m O y O o m n n n 3xN w `m mm 0) o'n ¢)O O N 3NN m sr N N LLd V d O O N O N (p � N O N O m O n W O O O �p r0' ? U N W O N W N N O w Q m m m a N o � q W \ N 0 U m a A Q m p m OI V N 0 M L 44iq C 0 `m-EdEE2'm �.� ter. o > n "c S o d .LL N N OS d 0 a TO 9 J d U O N d d d 6 N>> w V om ag3x�3r-w` ¢ a -, a'wozo-,LLia�-,m a c � d � hU 2 1a,G1:G1IL 1 111 tlUULIVII 1\ie3UIL3 . us., .... . Treasur-wDirect u I rn"ael , An1o11Cftn40L9. Data &RAS It r Latest Aucr LDaIta , ReCtat till Am:ltac kesuRs Recent Bill Auction Results Sierra ny Issue Meln ri[Y DA;count Investment Price eV SIP Teem Date Date Roar, °A Dare I Per $180 13 WFFK 12-02 2010 03-03-2011. 0. 175 0. 118 99 955]64 9127952n2 26 WEEK 12-02 2010 06-02-2011 0.21D 0.213 99.893833 912795.61 4-WFFK 11-26 2010 12-23-Man 0. 150 0.152 99 588]50 912795X40 55 DAY 11-26-2010 01-20 2011 0,160 0.1.62 99.975556 912195X09 13 WEEK 11-26-2010 02-24 2011 0. 140 0. Sa2 99.965000 9127952C4 26 WEEK 11-26 2010 05 26r2011 0. 195 0.198 99.901958 912795259 4 WEEK 11-18 2010 12-16-2010 0. 125 0.127 99.990278 912195UK5 56 DAY 11-18 Man 01-13 2011 0. 125 0.127 99.980556 91229SU%2 13 WEEK 11-18-2010 02-17 2011 0. 135 007 99.965875 912795206 26 WEEK 11-18 2010 05-19-2011 0,180 a 183 99.909000 91229521R1 53 WEEK 11-18 2010 11-12-201t 0 280 0.284 99716889 9127952P5 4 WEEK 11-12-2010 12 09 2010 0. 305 0. 106 99.99212E 912195X30 55-DAY 11-12 2010 01-06-2011 0,095 0.096 99.985486 912195XI1 13-WEEK 11-12-2010 02-t0-2011 0. 125 0, 127 99.968750 912195V40 26-WEEK 11-12-2010 05-124011 0.IA. 0,162 99.919556 9127952(3 4-WEEK li-0a 2010 12-02-2010 0. 125 0,121 99.9902/8 912295.9E 56 DAY at Pa 2010 12-30-201. 0.14E 0.141 99.9114a4 912795X55 13-WEEK 11-D4-2010 0203-2011 0. 125 0127 99.968403 912795@1 26 WEEK 1t 04-2010 05-05-2011 0. 155 0.157 99 921639 912295VE8 4 WEEK 10-28-2030 11-26-2010 0.130 0.112 99,989528 932295W6D 56 DAY 10-28 2010. 12-23-2010 0. 150 0,152 99.976667 912295X40 13 WEEK 10 28-2010 01-22-2011 0. 120 0,132 99.9621.39 912795X97 26 WEEK 10-28-2010 04-28-1011 0.110 0.123 99.91a056 g127952DD 4 WEEK 10-21-2010 11-192010 0. 135 0.132 99.989500 912795W8 56 DAY 10 21 2010 12-16-2010 0.150 0.152 99.976607 912295UK5 13 WEEK I. 21-2010 0120-2011 0.135 0.132 99,965875 912295X89 26 WEEK 10 21-2010 04-21-2011 0.120 0.123 99.914056 91279521,12 52 WEEK 10-21-2010 10-20-2011 0.225 0.229 99]72500 9127952K6 4 WEEK 10-14-2010 11-12-2010 Man 0.142 99.988722 912J95W72 56-DAY 10-14-2010 12-09-2010 0,150 0.152 99.976667 912195X30 13 WEEK 10-14-2010 at 13-2011 0.12E 0.12Y 99.968403 912I95VX2 26 WEEK 10-14-2010 04-14-2011 0.165 0,162 99.916583 912)952l4 4-WEEK 10 07-2010 11-04-2010 0,135 0,137 99.989500 912295W36 56-DAY 10 024010 12-02-2010 0.14E 0.142 99.977144 912J95W98 13 WEEK 10-02-2010 01-06-2011 0.130 0.132 99,967139 912195X21 26-WEEK 10 02-2010 114-07-2011 0,185 0.188 99,906472 912Y95VD0 a -WEEK 09 3. 2010 10-28-2010 0.080 0.081 9A993228 912795W49 52-DAY 09 30-2010 11-26-2010 MID 0,132 99.919117 912295W80 13 WEEK 09 30-2010 12-30-2010 0,155 0.152 99,960819 0'1191.55 26 WEEK 09 30-2010 03-31-2011 0,190 0,193 99903944 91.2795219 Effective With the 11/2/99 auction, all bills are auctioned using the single -pi iced method. I 111dar, 1,f1 roll1l 111 All I La1. & culpanre I l va, & L.1,11 Narl, I Alt a Tvml & o4na .D . I t, c.,>aOlty I Data QeaOb U S. Pparr ne n, fth, Trlalur,,B.,la 11lI f hit GetA http://www.treasurydirect.gov/RI/OFBills 11/30/2010 3 Recent Note, Bond, and TIPS Auction Results Page 1 of 1 TreasuryDirect Ils,11 I I.,11.1intrAlm.,III Data D insults , LI Auctronorta , Re2' 1 PI flow, and I NIS Ar',Um, Results Recent Note, Bond, and TIPS Auction Results [ssua ri in, Irte'e x Yield Pike seta aly term Tvve Dace It= Rnm IN. vA, slm cusxv 2-YEAR NOTE 11-30-2010 11-30 2012 0.500 0.520 99 1 0259 912828PV6 5 YEAR NOTE 1130-20I0 11-30-2015 1.3]5 1.411 99.826792 912828113 2-YEAR NOTE 11-30-201E 11 10 201] 2,250 2. 253 99.080673 91208PKC 3-YEAM1 NOTE t1 35-2010 11-15-2013 0.500 0.5]5 99111247 912828PH8 9-YEAR 8-MONTH TIPS 11 d5-2010 0745-2a 20 12" 0009 lw8103581 912828NMS 10-YEAR NOTE 31-35-2010 11 ,5-2020 2.625 2.636 99.903856 912828PCB 30-YEAR BOND 15 2010 11 15 2040 4.250 4.320 98.829162 912810QL5 2YEAR NOTE 33 01-2010 1U 31 2012 0,375 0.400 999503I5 912028PO6 5-YEAM1 NOTE 33-01-2010 10-31 2015 1.250 1.330 99.614432 912828PE4 7 YEAR NOTE 11-U1-2010 10-31-2011 1.815 1,920 99.3818d6 912828PP1 4-YEAR 6-MONTH TIPS SO-29-2UtU U4-IS-2015 O.SUU -0.55U lUS.50860] 9I2828MYJ 3 YEAR NOT[ 30-35-201U 1U-15-2011 O.SOU 0.569 99, 795046 912828PBO 9YEAR 10 MONTH NOTE 10-15-2010 08-15-2020 2.625 2,475 101.298742 912028NT3 29YEAR 10-MONTH BOND 10-15-2010 08-15-2040 3.875 3,852 100 397647 912810QK1 2 YEAR NOTE 09-30 20t0 09-30-20t2 0.315 0.441 99AO3724 912823N%4 S'YEAR NOTE 0930 2010 (930-2Ut5 1.]50 1160 99.951690 91282➢NZ9 7 YEAR NOTE 09-30-2010 09-30-0)11 1.815 1.891, As 902081 912828PA2 3 YEAR NOTE 09-15-2010 09-15-2013 0ISO 0.190 99,881642 912828NY2 9-YEAR 10 MONTH TIPS 09-15 2010 07-15-2020 1250 1,019 102. 109198 912828IMP 9YEAR 11 MONTH NOTE 09 15 2010 08-15-2020 2.625 2.670 9260]]96 912828NT3 29YEAR 11 MONTH BOND 09-15-2010 08 15-2040 3.8]5 3.820 100.97053D 912610QK7 2 YEAR NOTE 08-31 201.0 0831-2012 0.3]5 0 498 99 755524 912828PH7 5 YEAR NOTE 08-3 b2010 0631-2015 1.250 1. 324 99.402792 912828NV8 ]-PEAR NOTE 08.31 2010 08 31-2017 1.825 1,989 99 2S8493 912828/1 29YEAR 6-MONTH TIPS 08-31 2010 02-15-2040 2. 125 1.768 109.086149 912810QFB 3-TEAR NOTE 08-163010 08-15-2013 0,750 0,844 99,722359 912826Nu0 10 YEAR NOTE 08-16 2010 08-15-2020 2 625 2,730 99.086655 912828NT3 30-YEAR BOND 08-16-2010 08-15-2040 3 875 3.954 98,619129 912810QK7 2-YEAR NOTE 08 02 2010 0731-2012 0.625 0,665 99.92DRE3 912828NQ9 5-YEAR VOTE 08-022010 07-31-2015 1750 1.196 997dlRs 91262Ut1P1 7-YEAR Run 08-02-2010 07-31-2012 2,375 2.194 99 878150 912826NR7 3-YEAR Ron 07-15-2010 07-15-2013 1,000 1.055 99.838004 91282811N6 9-YEAR 10 MONTH NONE 07-15-2010 05-15-2020 3.500 3,119 103.199611 912828ND8 10-YEAR 7115 07-15-2010 07 15-2020 1.250 1.295 99,579194 912825NMB 29-YEAR SO -MONTH BOND 0]-15-2010 05-15-2040 4.3]5 4,080 m5.053815 9128I0QH4 2-YEAR NOIE 06-30-2010 06-30-2012 0.625 0738 99 776"0 9126261ISS N 5-YEAR OTE 0630-2010 06-30-2015 le's 1995.99.431646 912826N10 7YEAR ROTE 06-30-2010 06 30-2017 2.500 2,575 99.522396 912828NK2 3-YEAR NOTE 06-15-0010 06-15-2013 1.125 1.220 99.]2098] 912B28NH9 9-YEAR 11-MONTH NOTE 06-15-2010 05-35-2020 3.500 3.242 102.169092 91232814D➢ -Denotes TIPS bond; all other TIPS without a6terisks are notes Rees f INf,rmO?., Au I Ls. A 6ulslanw I f r M Y & t, la NI I W£t t I =tea & C,,,Idrr.r1 I Alles5lbIlry I Meta QPa11Y U.SD P rtne v oftRN T ry RVIN1au NJ the Prbhl Debt 4 http://www.treasurydirect.go'v/RI/OFNtebnd 11 /30/2010 Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) PMIA Performance Report a_te ar Yeld •waiter mate . a_ it Fa'9 tuntyu'' s ° 11/9/2010 0.46 0.47 193 11/10/2010 0.46 0.47 193 11/11/2010 0.46 0.47 193 11/12/2010 0.45 0.47 188 11/13/20101 0.45 0.47 188 11/14/2010 0.45 0.47 188 11/15/2010 0.46 0.47 189 11/16/2010 0.46 0.47 189 11/17/2010 0.46 0.47 186 11/18/2010 0.46 0.47 189 11/19/2010 0.46 0.47 189 11/20/2010 0.461 0.471 189 11/21/20101 0.46 0.47 189 11/22/2010 0, 461 0.471 185 11/23/20101 0.451 0.471 180 LAIF Performance Report Quarter end 09/3012010 Apportionment Rate: Earnings Ratio: Fair Value Factor: Daily: Quarter To Date: Average Life: 0.51 % .00001404107774697 1.001914850 0.47% 0.51 % 185 PMIA Average Monthly Effective Yields OCT 2010 0.480% SEP 2010 0.500% AUG 2010 0.513% Pooled Money Investment Account Portfolio Composition $68.6 Billion 10/31 /10 Corporate Bondq 0.00% Commercial Paper 11.09% Repurchases 0.73% Time Deposits 6.11% CDs/BNs 8.02% Loans 11.73% Agencies Mortgages 13.06% 0.85% Treasuries 48.41 % FRB: H.15--Selected Interest Rates, Web -Only Daily Update --November 26, 2010 Page 1 of 3 FEDERAL RESERVE STATISTICAI, 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 26, 2010 2010 2010 2010 2010 Instruments Nov Nov Nov Nov 22 23 24 25* Federal funds (effective) 1 2 3 0.19 0.20 0.20 0.20 Commercial Paper 3 4 5 6 Nonfinancial 1-month 0.23 0.19 0.20 2-month 0.23 0.17 n.a. 3-month 0.25 0.22 n.a. Financial 1-month 0.21 0.21 0.22 2-month 0.21 0.22 0.25 3-month 0.25 0.27 0.26 CDs (secondary market) 3 '7 1-month 0.23 0.24 0.23 3-month 0.26 0.27 0.27 6-month 0.34 0.36 0.36 Eurodollar deposits (London) 3 8 1-month 0.33 0.33 0.33 0.33 3-month 0.39 0.39 0.39 0.39 6-month 0.60 0.60 0.60 0.60 Bank prime loan 2 3 9 3.25 3.25 3.25 3.25 Discount window primary credit 2 10 0.75 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 3 4 4-week 0.12 0.15 0.16 3-month 0.15 0.15 0.16 6-month 0.20 0.20 0.20 1-year 0.25 0.25 0.27 Treasury constant maturities Nominal 11 1-month 0.12 0.15 0.16 3-month 0.15 0.15 0.16 6-month 0.20 0.20 0.20 1-year 0.26 0.26 0.28 2-year 0.49 0.45 0.53 3-year 0.72 0.69 0.81 5-year 1.44 1.40 1.56 7-year 2.11 2.08 2.24 10-year 2.80 2.77 2.93 20-year 3.85 3.82 3.96 30-year 4.20 4.18 4.29 Inflation indexed 12 5-year -0.14 -0.14 -0.03 7-year 0.22 0.22 0.33 10-year 0.70 0.69 0.80 http://www.federalreserve.gov/Releases/H 15/update/ Federal Reserve Statistical Release :• H.15 Selected Interest Ratea> (Daily) Skip m Content Release Date: November 26, 2010 WeM release dates I historical data I Data Do nload Program (DUP)_I About I Announcements Daily update Otherjormats: Screen reader I ASCII '�� Data Downiaatl � Program 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. 11/30/2010 6 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --November 26, 2010 Page 2 of 3 20-year 30-year Inflation -indexed long-term average 13 Interest rate swaps 14 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa 15 Ise State & local bonds 16 Conventional mortgages 17 * Markets closed. n.a. Not available. Footnotes 1.48 1.46 1.56 1.64 1.63 1.73 1.36 1.35 1.45 0.44 0.44 0.50 0.67 0.63 0.72 0.97 0.89 1.00 1.34 1.24 1.36 1.71 1.62 1.74 2.35 2.27 2.39 2.96 2.89 3.01 3.88 3.84 3.93 4.89 4.85 n.a. 5.94 5.90 n.a. 4.40 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. An average of dealer bid rates on nationally traded certificates of deposit. S. Source: Bloomberg and CTRB ICAP Fixed Income & Money Market Products. 9. 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. 10. 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. 11. 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 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-year 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. 12. 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 http://www.federalreserve.gov/Releases/Hl 5/update/ 11/30/2010 7 PKtS: H.1J--Jelectecl Interest Kates, web -Only Lally update --November 26, 2uiu rage 3 of 3 found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/. 13. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years. 14. International Swaps and Derivatives Association (ISDA?) 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 Carbon Intercapital plc and published on Reuters Page ISDAFIX?l. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 15. Moody's Aaa rates through December 6, 2001, are averages of Asa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17. Contract interest rates on commitments for fixed-rate first mortgages. Source: Primary Mortgage Market Survey? 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 202-452-3244, fax 202-728-5886). 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 Otherformats Screen, reader IASCII Statistical releases _Home I Economicresearch earth and data Accessibility l Comam Us Last update: November 26, 2010 http://www.federalreserve.gov/Releases/Hl5/update/ 11/30/2010 8 I, KB: Commercial raper Kates and Uutstancimgs rage i or .s Federal Reserve Release 1111-1-11 Release I About I Announcements I Outstu dings ( Volume statistics I Year-end I MaturitXDistribution i Data Download Program (DDP) Data as of November 29, 2010 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust & Clearing Corporation Posted November 30, 2010 Discount rates FTermnonfinancial AA o A2/P2 nonfinancral AA financial AA asset -backed 1-day 0.20 C 0.34 0.19 0.28 7-day 0.20 C 0.35 0.18 0.44 15-day 0.19 C 0.37 0.20 0.31 30-day 0.21 C 0.35 0.21 0.29 60-day 0.20 C iT.a. 0.22 0.33 90-day 0.21 C n.a. 0.25 0.33 Trade data insufficient to support calculation of the 60-day A2/P2 nonfinancial and 90-day A2/P2 nonfinancial rates for November 29, 2010. Yield curve Money market basis --- AA nonfinancial •••.....••• A2f1`2 nonfinancial -- AA fimmc fall f.: t 1 7 15 30 Days to Maturity .r Percent -----1 0.75 Ne 0.50 0.25 0.00 http://www.federalreserve.gov/Releases/CP/ 11/30/2010 9 1,KB: Commercial Yaper xates and Uutstandmgs rage 1 of S Discount rate spread AGIF. tens AA nommanciai corn meretai paper (aatly) oasts points r��4sd !i— sprw�d. 5-dny a11c'hriav ucp 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Discount rate history 7 6 5 4 3 2 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Outstandings Weekly (Wednesday), seasonally adjusted 10 http://www.federalreserve.gov/Releases/CP/ 11/30/2010 FRB: Commercial Paper Rates and Dutstandings Page 3 of 3 1270 1170 1070 970 870 770 670 570 470 370 Billions of dollars Billions of dollars ^� SVonfinarrcial (ri±,+ht suticj �`+` Emu unciol{Irfl'CAO k ,t ,.. h{ n tI'j•'t i yV f 1 , (Y� t 2001 2003 2005 2007 2009 M 240 200 160 120 The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve Board makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve Board is closed on a business day, rates for the previous business day will be available through the Federal Reserve Board's Data Download Program (DDP). This policy is subject to change at any time without notice. Release I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution I Data Download Program_(DDP) Home I Statistical releases.. Accessibility I Contact Us Last update: November 30, 2010 11 http://www.federalreserve.gc,v/Releases/CP/ 11 /30/2010 City of La Ouinta Cash Flow Budget to Actual October 31, 2010 Cash Basis Budget Actual Accrual/ Adjusted Total Variance Account 10/10 10/10 Adustment 10/10 Over Under Notes Property Tax/ Tax Increment - 623.850 - 623,850 - 623.850 Supplemental Property Tax received Transient Occupancy Tax 199.797 186.956 186,956 (12,841) Sales Tax 296,176 279,300 279,300 (16,876) SilverRock Golf 109,343 41,124 41,124 (68,219) Golf Course closed for reemerging Library 485 (485) Riverside Co Transportation Commission - Otherrevenues 2,215437 3,092,484 3092,464 877,047 list ptr Rre Service Revenue$1. tm Revenues 2,821,238 4,223,714 4,223,714 1,402,476 Expenditures Salaries B Fringe Benefits 1,294,656 1,129,380 1,129,380 (165,276) 1st Gb Fire Service Costs $1.1 m; Annual rent Other expenditures - 2,141,782 3631,882 3,631.882 1,490,100 payment 5552k 3,436,438 4.761,262 4,761252 1,324,824 Subtotal 237,222 202.431 202.431 (34,791) Redevelopment Agency Debt Service(PrincipalllnteresVPass Through) 824,565 333,167 833,467 8,902 1061787 1035,898 1,035,898 25,889 Subtotal 1,239,939 1,239 939 1,239939 Capital Projects Total Expenditures 5,738,164 7,037,099 7,037,099 1,298,935 Net Revenues/Expendltums 2,916,926) (2,813,385)1 1 (2,813,385)1 2,701,412 NOTE 1: Expenditures are budgeted at 8,34 % per month Difference between actual and budget (Underspent) DEPARTMENT Overspent Notes GENERAL GOVERNMENT (79,169) CITY CLERK 5,785 COMMUNITY SERVICES 32,573 FINANCE 13.092 BUILDING B SAFETY 553,817 Annual rent payment PUBLIC SAFETY (302,052) 1st Ctr Fire Service dusts less Nan budget PLANNING 119,738 2 menms General Plan contract payment PUBLIC WORKS: (16,359) 328425 SUBTOTAL -GENERAL FUND Library Gas Tax Federal Assistance - JAG Grant Slesf (Cops) Revenue Indian Gaming Lighting 8 Landscaping RCTC 'Development Agreement AS 939 4,940 Quimby Infrastructure Proposition 16 South Coast Air Quality 1,911 Transportation Parks 8 Recreation Civic Center Library Development Community Center - Street Facility - Park Facility - Fire Protection Arts In Public Places (4,437) interest Allocation - Equipment Replacement (17,988) Information Technology 23,662 Park Maintenance Facility (37,563) SilverRock Golf (25,976) SilverRock Reserve LQ Public Safety Officer (167) Housing Authority 288 Finance Authority (1,066) Capital Improvement Total 272,029 12 INVESTMENT ADVISORY BOARD Meeting Date: December 8, 2010 TITLE: Pooled Money Investment Board Report for September 2010 BACKGROUND: Correspondence & Written Material Item C The Pooled Money Investment Board Report for September 2010 is included in the agenda packet. RECOMMENDATION: Receive & File tx-eo�� John M. Falconer, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF SEPTEMBER 2010 WITH SEPTEMBER 2009 (DOLLARS IN THOUSANDS) SEPTEMBER 2010 SEPTEMBER 2009 GRANGE Average Daily Portfolio $ Accrued Earnings $ Effective Yield Average Life -Month End (In Days) 65,447,550 $ 26,893 $ 0.600 % 185 61,118,055 $ +4,329,495 37,700 $-10,807 0.750 % -0.26 % 234 -49 I Total Security Transactions Amount $ 23,870,222 $ 28,698,114 $ -4,827,892 Number 487 585 -98 Total Time Deposit Transactions Amount $ 2,669,500 $ 2,675,000 $ -6,500 Number 124 115 +9 Average Workday Investment Activity $ 1,263,796 $ 1,493,958 $ -230,162 Prescribed Demand Account Balances For Services $ 1,341,692 $ 1,045,464 $ +296,228 i BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) September 30, 2010 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 24,816,931 36.73 +0.01 Bonds 0 0.00 Notes 6,650,737 9.84 +0.06 Strips 0 0.00 Total Government $ 31,467,668 46.57 +0.07 Federal Agency Debentures $ 1,086,062 1.61 +0.01 Certificates of Deposit 7,190,000 10.64 +0.35 Bank Notes 200,000 0.30 +0.01 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 5,731,359 8.48 -0.41 Time Deposits 4,226,650 6.26 +0.09 GNMAs 65 0.00 0 Commercial Paper 6,571,530 9.73 +1.64 FHLMC/Remics 600,821 0.89 -0.02 Corporate Bonds 0 0.00 -0.16 AB 55 Loans 301,517 0.45 -0.07 GF Loans 9,881,700 14.63 -1.51 NOW Accounts 0 0.00 0 Other 300,000 0.44 0 Reversed Repurchases 0 0.00 0 Total (All Types) $ 67,557,372 100.00 SEPTEMBER 2010 AUGUST 2010 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 487 $ 23,870,222 364 $ 17,743,081 Other 13 601,792 18 $ 2,584,001 Time Deposits 124 2,669,500 84 $ 1,832,500 Totals 624 $ 27,141,514 466 $ 22,159,682 PMIA Monthly Average Effective Yield 0.500 0.513 Year to Date Yield Last Day of Month 0.515 0.522 01 Pooled Money Investment Account Portfolio Composition $67.6 Billion W11']K107 I� Loans i F naai Corporate Bc 0.00% Commercial Paper 9.73% Time Deposits 6.26% CDs/ 10.9 Agencies Mortgages 10.53% 0.89% Treasuries 46.57% INVESTMENT ADVISORY BOARD Meeting Date: December 8, 2010 ITEM TITLE: November 9, 2010 Joint Meeting Minutes with the City Council BACKGROUND: Correspondence & Written Material Item D The minutes from the joint meeting with the City Council will be approved at the December 7, 2010 City Council meeting and will be distributed at the December 8, 2010 Investment Advisory Board Meeting. RECOMMENDATION: Information item only. �� John M. Falconer, Finance Director BOARD MEMBER ITEMS