2010 12 21 FAo4�, f `
•c
U S
5
OF iti�'94.
FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, DECEMBER 21, 2010 — 4:00 P.M.
Beginning Resolution No. FA 2010-003
CALL TO ORDER
Roll Call:
Board Members: Evans, Franklin, Henderson, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF NOVEMBER 16, 2010.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
RECEIVE AND FILE TREASURER'S REPORT DATED OCTOBER 31, 2010.
Financing Authority Agenda 1 December 21, 2010pp,- ' 001
2. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED OCTOBER
31, 2010.
3. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA
FINANCING AUTHORITY 1996 LEASE REVENUE REFUNDING BONDS AND
2004 LOCAL AGENCY REVENUE BONDS FOR FISCAL YEAR ENDING JUNE
30, 2010.
BUSINESS SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
The next regular meeting of the Financing Authority will be held on January 18,
2011, at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico,
La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Financing Authority meeting of December
21, 2010, was posted on the outside entry to the Council Chamber at 78-495
Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on December 17, 2010.
DATED: December 17, 2010
VERONICA J. MONTECINO, City Clerk
City of La Quinta, California
Public Notice
Any writings or documents provided to a majority of the Financing Authority regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
Financing Authority Agenda 2 December 21, 2%P 002
a� •cy`
F
C
`y OF'fKF'
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 21, 2010
ITEM TITLE: Receive and File Treasurer's Report
dated October 31, 2010
RECOMMENDATION:
It is recommended the La Quinta Financing Authority:
Receive and file.
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
w• n
ced,y,, 4 aCP Qu&rry
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: December 21, 2010
BUSINESS SESSION:
ITEM TITLE: Receive and File Revenue and
Expenditure Report dated October 31, 2010 CONSENT CALENDAR:-�
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
Transmittal of the October 31, 2010 Statement of Revenue and Expenditures for
the La Quinta Financing Authority.
Respectfully submitted,
I l
John M. Falconer, Finance Director
(�Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures, October 31, 2010
004
LA OUINTA FINANCING AUTHORITY 07101/2010-1013112010
REVENUE DETAIL ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
DEBT SERVICE REVENUE:
Contractual Services Fees
15,800.00
0.00
15,800.00
0.000%
Non Allocated Interest
0.00
0.00
0.00
0.000%
Rental Income
672,525.00
552,090.00
120,435.00
82.090%
Transfer In
5,915,131.00
3,844,965.63
2,070,165.37
65.000%
TOTAL DEBT SERVICE
6,803,456.00
4,397,055.63
2,206,400.37
66.590
CAPITAL IMPROVEMENT REVENUE:
Pooled Cash Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
0.00
0.00
0.000%
TOTAL CIP REVENUE
0.00
0.00
0.00
0.000%
TOTAL FINANCING AUTHORITY 6,603,458.00 4,397,055.63 2,206,400.37 66.590%
n 005
•.• 2
LA QUINTA FINANCING AUTHORITY
ADJUSTED
BUDGET
10/31/10
EXPENDITURES
ENCUMBERED
REMAINING
BUDGET
EXPENDITURE SUMMARY
DEBT SERVICE EXPENDITURES
12,800,00
4,871.29
0,00
7,928.71
SERVICES
BOND PRINCIPAL - 1996
420,00000
420,000,00
0,00
0.00
BOND PRINCIPAL - 2004
1740,000.00
1,740,000.00
0.00
000
BOND INTEREST -19%
252,52500
132,090.00
0.00
120.43500
BOND INTEREST - 2004
4,175,131.00
2,104065.63
0.00
2070,165.37
TRANSFER OUT
0.00
000
000
0.00
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT EXPENDITURES
0.00
BOND ISSUANCE COSTS
0.00
0.00
0.00
TRANSFER OUT
0.00
0.D0
0.00
000
TOTAL CAPITAL IMPROVEMENT
000
TOTAL FINANCING AUTHORITY
6.600.45600
pofl oo6 3
ceitij/ 4 CP Qgmrcv
E`y OF TN4'O
COUNCIL/RDA MEETING DATE: December 21, 2010
ITEM TITLE: Approval of Annual Continuing
Disclosure for the La Quinta Financing Authority
1996, Lease Revenue Refunding Bonds and 2004
Local Agency Revenue Bonds for Fiscal Year End
June 30, 2010
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local Agency
Revenue Bonds for Fiscal Year End June 30, 2010.
FISCAL IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On November 10, 1994, the Securities and Exchange Commission adopted
amendments to existing federal regulations (Rule 15c2-12) for bonds issued after
July 3, 1995, requiring issuers of municipal securities (bond issues) to do the
following annually for each bond issue:
1. Prepare official statements meeting the content requirement of
Rule 15c2-12.
2. File certain financial information and operating data with national and state
repositories each year.
3. Prepare announcements of the significant events including payment
defaults, defeasances and draws on a reserve fund as the events occur.
007
Attachment 1 is the Fiscal Year 2009-2010 Annual Continuing Disclosure
Statement for the La Quinta Financing Authority 1996 Lease Revenue Refunding
Bonds and the 2004 Local Agency Revenue Bonds prepared in accordance with the
three aforementioned requirements. Additionally, no announcement of significant
events was necessary for Fiscal Year 2009-2010, however, there was a
subsequent event after June 30, 2010 that will be reported for the 2004 Local
Agency Revenue Bonds as follows:
On November 8, 2010, Ambac Financial Group, Inc. ("Ambac Group"), whose
principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of
public finance and structured finance obligations, announced that it filed for a
voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code
("Bankruptcy Code") in the United States Bankruptcy Court for the Southern
District of New York ("Bankruptcy Court'). Ambac Group will continue to operate
in the ordinary course of business as "debtor -in -possession" under the jurisdiction
of the Bankruptcy Court and in accordance with the applicable provisions of the
Bankruptcy Code and the orders of the Bankruptcy Court.
It is important to note that the Agency has continued to pay debt service to the
bondholders who invested in these two bond issues.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Financing Authority include:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local
Agency Revenue Bonds for Fiscal Year End June 30, 2010; or
2. Do not approve, receive and file the Annual Continuing Disclosure for the La
Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and 2004
Local Agency Revenue Bonds for Fiscal Year End June 30, 2010; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
11=
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Fiscal Year 2009-2010 Annual Continuing Disclosure
Statements for the La Quinta Financing Authority
3
A l l Al,NIVIUV I I
LA QUINTA FINANCING AUTHORITY
$8, 790y 000
1996 LEASE REVENUE REFUNDING BONDS
(LA QUINTA CITY HALL PROJECT)
Riverside County, California
Dated: November 15, 1996
Base CUSIP+: 50419R
2010 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 21, 2010
Also available at:
_
WILLDAN I
Financial Smiv ?
www.wilidan.com
+ Copyright, American Bankers Association. CUSIP data is provided by Standard and Poor's, CUSIP Service Bureau, a
division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way
as a substitute for the CUSIP service. The issuer takes no responsibility for the accuracy of such number.
ago
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-quinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calla Tampico
La Quinta, California 92247
(619) 777-7150
DISCLOSURE CONSULTANT& DISSEMINATION AGENT
Willdan Financial Services"
Temecula, California 92590
(951)587-3500
Report available for viewing @
www.wilidan.com
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker, LLP
Costa Mesa, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213)615-6047
In its role as Disclosure Consultant and Dissemination Agent, Willdan Financial Services has not passed upon the
accuracy, completeness or fairness of the statements contained herein.
I. INTRODUCTION
Pursuant to an Official Statement dated November 15, 1996 the La Quinta Financing
Authority (the "Authority") issued $8,790,000 1996 Lease Revenue Refunding Bonds
(La Quinta City Hall Project) (the "Bonds") to refinance the Authority's previously issued
Local Agency Revenue Bonds, Series 1991 (City Hall Project).
The City of La Quinta (the "City"), which comprises approximately 35.31 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from
Los Angeles.
The Bonds are payable solely from the lease payments relating to the La Quinta City
Hall Project, and amounts held in certain funds and accounts established under a trust
agreement. The City has covenanted to provide for the lease payments in its annual
budget and to make the necessary appropriation for such payments. However, the
Bonds and the obligation of the City to make lease payments does not constitute an
obligation for which the City is obligated to levy or pledge any form of taxation. Neither
the Bonds nor the obligation of the City to make lease payments constitutes an
indebtedness of the City, the State of California or any political subdivisions thereof
within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to
a covenant made by the City and the Authority for the benefit of the holders of the
Bonds and includes the information specified in a Continuing Disclosure Agreement.
For further information and a more complete description of the City, the Authority and
the Bonds, reference is made to the Official Statement.
The information set forth herein has been furnished by the Authority and the City and by
sources, which are believed to be accurate and reliable but is not guaranteed as to
accuracy or completeness. Statements contained in this Annual Continuing Disclosure
Information Statement which involve estimates, forecasts, or other matters of opinion,
whether or not expressly so described herein, are intended solely as such and are not
to be construed as representations of fact. Further, the information and expressions of
opinion contained herein are subject to change without notice and the delivery of this
Annual Continuing Disclosure Information Statement will not, under any circumstances,
create any implication that there has been no change in the affairs of the Authority and
the City or any other parties described herein.
2009110 — 1996 Lease Rev City of La Quinta 1 O 12
11. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 20, 2010
1996 Lease Revenue Bonds $4,340,000
B. FUND BALANCES
Fund As of October 20, 2010
Reserve Fund "' $689,350
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by National Public Finance Guarantee
Corporation.
III. FINANCIAL INFORMATION
The audited financial statements for the City for the fiscal year ended June 30, 2010
and the Adopted Budget for fiscal year 2010/11 will be separately filed with the
Electronic Municipal Market Access website ("EMMA") and are hereby incorporated by
reference into this Annual Continuing Disclosure Information Statement.
IV. OPERATING INFORMATION
A. GENERAL FUND EXPENDITURES BY FUNCTION
Fiscal
Year
Ending
General
Public
Public
Community
Planning &
June 30
Government
Safety
Works
Service
Development
2006'
$4,426,484
$13,029,187
$5,044,896
$1,248,308
$955,569
2007
5,246,378
15,634,761
5,019,859
2,994,586
1,384,466
2008
6,566,585
17,142,443
5,075,195
2,914,422
1,209,935
2009
6,266,263
18,905,111
4,667,193
2,989,567
1,367,350
2010
5,697,766
19,921,752
4,870,691
2,773,467
1,355,177
2009110 — 1996 Lease Rev City of La Quints 2 013
B. GENERAL FUND REVENUE BY SOURCE
Fiscal Year Licenses Charges
Ending and Inter- for
Rental
June 30 Taxes Permits Governmental Services Interest
Income Miscellaneous Total
2006 $19,259,829 $5,145,430 $6,530,777 $2,180,058 $4,115,872
$123,500 $315,812 $37,671,278
2007 21,594,996 2,788,882 7,400,101 1,544,190 5,188,103
0 504,144 39,020,416
2008 22,665,855 2,107,035 9,142,554 1,213,519 5,239,552
0 668,47119 41,036,986
2009 20,687,205 871,167 8,907,566 663,738 4,196,101
0 556,32021 35,882,103
2010 19,730,707 472,409 12,641,162 478,716 3,601,495
0 522,069131 37.446,558
nl Includes Contribution from property owners of $154,417 and Fines and forfeitures of $359,114.
(2) Includes Fines and forfeitures of $434,635.
(3) Includes Fines and forfeitures of $395,823.
C. PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year Total Current Percent
Collections in Total
Ending Tax Tax of Levy
Subsequent Collections
_ June 30 Levy Collection Collected
Years to Tax Levy
2006 $61,420,601 $73,097,362 119.01%
$2,092,062 122.42%
2007 74,170,170 83,797,365 112.98%
1,802,076 115.41%
2008 83,018,429 87,804,912 105.77%
3,216,547 109.64%
2009 83,934,188 86,721,572 103.32%
1,471,940 105.07%
2010 78,621,410 80,651,874 102.58%
434,643 103.14%
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.
Source: County of Riverside Auditor Controller's Office.
D. SCHEDULE OF NET TAXABLE VALUE
Fiscal
Year
Assessed
Net
Ending
Secured
Unsecured
Property
Less
Taxable
June 30
Property
Property
Value
Exemptions
Value
2006
$7,856,383,375
$72,554,357
$7,928,937,732
($115,071,146)
$7,813,866,586
2007
9,986,151,525
88,740,840
10,074,892,365
(99,245,721)
9,975,646,644
2008
11,854,669,637
101,433,002
11,956,102,639
(89,688,505)
11.866,414,134
2009
12,410,626,893
113,185,065
12,523,811,958
(107,777,195)
12,416,034,763
2010
11,742,665,902
121,272,880
11,863,938,782
(110,752,890)
11,753,185,892
Source: County of Riverside Auditor -Controller
2009110 — 1996 Lease Rev City of La Quinta 3 014
E. SCHEDULE OF DIRECT AND OVERLAPPING DEBT
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
Overlapping Debt Repaid with Property Taxes and Assessments
Desert Community College District
Coachella Valley Unified School District
Desert Sands Unified School District (DSUSD)
Coachella Valley County Water District I.D. No. 55
Coachella Valley County Water District I.D. No. 58
DSUSD Community Facilities District No. 1
City of La Quinta 1915 Act Bonds
Coachella Valley Water District Assessment District No. 68
Total overlapping debt repaid with property taxes
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
Riverside County Pension Obligations
Riverside County Board of Education COP
Coachella Valley Unified School District COP
DSUSD COP
Coachella Valley County Water District I.D. No. 71 COP
Coachella Valley Recreation and Park District COP
Total overlapping other debt
Total overlapping debt
City direct debt
Total direct and overlapping debt
Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/09 Debt
8.105%
34.620%
7.605%
86.023%
6.536%
100.000%
100.000%
86.247%
1,827%
1.827%
1.827%
34.620%
7.605%
11.790%
13.466 %
$ 323,954,507
115,202,921
278,387,325
3,730,000
1,755,000
1,820,000
1,165,000
2,110,000
$ 728,124,753
$ 736,427,761
375,100,000
7,240,000
51,680,000
65,970,000
4,025,000
2,400,000
$ 1,242,842,761
$ 1,242,842,761
$ 26,256,513
39,883,251
21,171,356
3,208,658
114,707
1,820,000
1,165,000
1,819,812
$ 95,439,297
$ 13,454,535
6,853,077
132,275
17,891,616
5,017,019
474,548
323,184
$ 44,146,254
$ 139,585,551
229,835,915
$ 369,421,466
Notes:
r 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 taxable assessed value that is within the city's
boundaries and dividing it by each Unit total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process
recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying
the debt of each overlapping government.
Source: California Municipal Statistics, Inc: overlapping debt.
Source: City of La Quinta - City Direct debt.
2009110 — 1996 Lease Rev City of La Quinta a
015
F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2010)
Net Assessed Valuation $11,753,185,892
Debt Limit - 15 % of Assessed Valuation 1,762,977,884
Amount of Debt Applicable to Debt Limit 0
Legal Debt Margin $1,762,977,884
Note: Section 43605 of the Government Code of the State of California limits the amount of
indebtedness for public improvements to 15% of the assessed valuation of all real and personal
property of the City. The City of La Quinta has no general bonded indebtedness.
G. REVENUE BOND COVERAGE
Local Agency Revenue Bonds (City Hall Project)
Fiscal
Debt Service Requirements
Year
Ending
June 30
Revenue Available
for Debt Service
Principal
Interest
Total
Coverage
2006
2007
2008
2009
2010
$680,575
678,865
675,880
676,450
675,280
$330,000
345,000
360,000
380,000
400,000
$350,575
333,865
315,880
296,450
275,280
$680,575
678,865
675,880
676,450
675,280
1.00
1.00
1.00
1.00
1.00
Note: Revenue available consists of payments from the City General Fund, Civic Center
Development Impact Fee Fund and the Redevelopment Agency Capital Project Fund.
H. DEMOGRAPHIC STATISTICS 2010
City Land (Sq. Miles)
(3)
35.31
Population
0)
44,421
Median Household Income (in dollars)
(4)
$90,124
Number of Dwelling Units
(3)
21,699
Persons per Household
(3)
2.865
Average Income per person per household
$31,457
Labor Force
(2)
14,600
Employment
(2)
13,500
Unemployment Rate
(2)
7.53%
Median Age
(4)
422
(1) State of California Department of Finance - January 1 of each year.
(2) Slate 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: HdLCoren & Cone
Companies thereafter.
2009110 — 1996 Lease Rev City of La Quinta 5
016
J
PRINCIPAL TAXPAYERS (JUNE 30, 2010)
Percent of Total
Taxable
City Taxable
Taxpayer
Assessed Value
Assessed Value
KSL Desert Resort, Inc.
$204,496,893
1.74%
TD Desert Development
107,930,953
0.92%
MSR Resort Golf Course
98,061,022
0.83%
East of Madison LLC
67,038,913
0.57%
Walmart Real Estate Business Trust
50,781,966
0.43%
Coral Option I LLC
42,590,434
0.36%
ND La Quinta Partners
41,789,035
0.36%
Griffin Ranch
38,378,266
0.33%
WRM La Quinta
37,778,949
0.32%
Village Resort
34,485,244
0.29%
Total
$723,331,675
6.15%
Note: The amounts shown above include assessed value data for both the City and Redevelopment
Agency.
MAJOR EMPLOYERS (JUNE 30, 2010)
Employer _ Employees Activi
La Quinta Resort & Club
1,500
Hotel & Golf Resort
PGA West
1,200
Golf Resort
Desert Sands Unified School District
764
Government
Wal-Mart Super Center
350
Retailer
Home Depot
210
Retailer
Hideaway
150
Golf Resort
Lowe's Home Improvement
150
Retailer
ND La Quinta Partners LLC
150
Real Estate Development
Stater Brothers
130
Grocery Store
Tradition Golf Club
101
Grocery Store
Total Employment Listed
4,705
Total City Employment — July 1 _ 13,500
2009110 — 1996 Lease Rev City of La Quinta 6
01l
K.
SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2010)
Company
Policy
Name
Number
Coverage
Limits
Tenn
Premium
Hartford
72BPEEW0254
Employee Dishonesty,
$1,000,000
12/03/09 - 12/03/10
$3,013
Forgery, Computer
Fraud
Lexington
20412656
All Risk Property
63,806,700
7/01/09 - 7/01/10
50,433
Insurance Including
Auto Physical
Damage, Terrorism,
Boiler & Machinery
(Excluding
Earthquake)
Lloyds
750020221-L-00
Earthquake/Flood,
20,000,000
2/07/10 — 2/07/11
125,951
Real & Personal
Property Including
Contingent Tax
Interruption
' California
Comprehensive
$50 Million
7/01/09 — 7/01/10
365,209
Joint Powers
N/A
General Liability
Single Limit per
Insurance
Occurrence
Authority
California
Workers
10,000,000
7/01/09 — 7/01110
106,288
Joint Powers
N/A
Compensation
Insurance
Authority
Alliant
PECO011896301
Pollution Liability
10,000,000
7/01/08 — 7101/11
19,215
2009110— 1996 Lease Rev City of La Quinta
7
01�
L. CASH AND INVESTMENTS (JUNE 30, 2010)
Cash and Investments
Cash and investments as of June 30, 2010, are classified in the accompanying financial
statements as follows:
Statements of Net Assets
Cash and investments $ 165,550,508
Cash with fiscal agent 16,570,211
Statements of Fiduciary Net Assets:
Cash and investments 551,708
Total cash and investments $ 182,672,427
Cash and investments as of June 30, 2010, consist of the following:
Cash on hand $ 1,400
Depositswith financial institutions (1,330,735)
Investments 184,001, 762
Total cash and investments $ 182,672,427
2009110 — 1996 Lease Rev City of La Quints 6
a O 1
M. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. The City has no knowledge that any of the
events listed below have occurred or have not been previously reported during
the fiscal year ended June 30, 2010.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial
difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10, Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
V. SUBSEQUENT EVENTS
On November 8, 2010, Ambac Financial Group, Inc. ("Ambac Group"), whose
principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of
public finance and structured finance obligations, announced that it filed for a
voluntary petition for relief under Chapter 11 of the United States Bankruptcy
Code ("Bankruptcy Code") in the United States Bankruptcy Court for the
Southern District of New York ("Bankruptcy Court'). Ambac Group will continue
to operate in the ordinary course of business as "debtor -in -possession" under the
jurisdiction of the Bankruptcy Court and in accordance with the applicable
provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.
2009110 — 1996 Lease Rev City of La Quinta a
020
LA QUINTA FINANCING AUTHORITY
$905000,000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
Base CUSIP": 50420A
2010 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 21, 2010
Also available at:
WILLDAN
_ Financial Services
www.willdan.com
+ Copyright, American Banker's Association. CUSIP data is provided by Standard and Poor's, CUSIP Service Bureau, a
division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way
as a substitute for the CUSIP service. The issuer takes no responsibility for the accuracy of such number.
a.. 021
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-quinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760) 777-7150
DISCLOSURE CONSULTANT 8r DISSEMINATION AGENT
Willdan Financial Services
Temecula, CA 92590
(951) 587-3500
Report available for viewing @
www.willdan.com
UNDERWRITER
Wedbush Morgan Securities
BOND COUNSEL
Rutan & Tucker LLP
Costa Mesa, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 615-6047
In its role as Disclosure Consultant and Dissemination Agent, Willdan Financial Services has not passed upon the
accuracy, completeness or fairness of the statements contained herein.
022
L INTRODUCTION
Pursuant to an Official Statement dated June 21, 2004, the La Quinta Financing Authority (the
"Authority") issued $90,000,000 Local Agency Revenue Bonds, 2004 Series A (the "Bonds') to
provide a loan to the La Quinta Redevelopment Agency (the "Agency") to finance affordable low
and moderate housing in or of benefit to the Community Redevelopment Project Areas No. 1
and 2 (collectively the 'Redevelopment Projects") and to advance refund the Agency's
Redevelopment Project Areas No. 1 and No. 2, 1995 Housing Tax Allocation Bonds (the "1995
Bonds"). The Bonds were sold by the Agency for the purpose of increasing, improving and/or
preserving the supply of low and moderate income housing within the Redevelopment Projects.
The City of La Quinta, (the "City') which comprises approximately 35.31 square miles, is
located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los
Angeles.
The Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of
approximately 11,200 acres, which includes approximately 50.3% of the current area of the
City. Redevelopment Project Area No. 2 (the 'Project Area No. 2") encompasses an area of
approximately 3,116 acres north of Project Area No. 1. The objective of the Agency is to
eliminate or reduce the many instances of economic, physical or social blight presently existing
within the boundaries of the Redevelopment Projects.
The Bonds are special obligations of the Agency and are secured by a pledge of Housing Set -
Aside Tax Revenues, as defined in the Official Statement. The Agency also has outstanding
Tax Allocation Refunding Bonds, Series 1994 (the "1994 Bonds"), a portion of the debt service
on which is payable prior to the Bonds from Tax Revenues required to be deposited in the
Project Area No. 1 Low and Moderate Income Housing Fund. The Bonds are not a debt of the
City, the State of California, or any of its political subdivisions and neither the City, the State of
California, nor any of its political subdivisions is liable. The Bonds do not constitute
indebtedness within the meaning of any constitutional or statutory debt limit or restriction.
This Annual Continuing Disclosure Information Statement is being provided pursuant to a
covenant made by the Agency for the benefit of the holders of the Bonds and includes the
information specified in a Continuing Disclosure Certificate. For further information and a more
complete description of the Agency and the Bonds, reference is made to the Official Statement.
The information set forth herein has been furnished by the Agency and by sources, which are
believed to be accurate and reliable but is not guaranteed as to accuracy or completeness.
Statements contained in this Annual Continuing Disclosure Information Statement which involve
estimates, forecasts, or other matters of opinion, whether or not expressly so described herein,
are intended solely as such and are not to be construed as representations of fact. Further, the
information and expressions of opinion contained herein are subject to change without notice
and the delivery of this Annual Continuing Disclosure Information Statement will not, under any
circumstances, create any implication that there has been no change in the affairs of the
Agency or any other parties described herein.
2009110, 2004 Revenue City of La Quinta N 0 n 3
a.: L
11. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 20, 2010
Local Agency Revenue Bonds, 2004 Series A $81,150,000.00
B. FUND BALANCES
Fund As of October 20, 2010
Reserve Fund t'I $5,950,356.67
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation.
III. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2010
will be separately filed with the Electronic Municipal Market Access website ("EMMA")
and are hereby incorporated by reference into this Annual Continuing Disclosure
Information Statement.
IV. OPERATING INFORMATION
A. ASSESSED VALUATIONS
The following table set forth the Taxable Values and the Gross Tax
Increment for the Redevelopment Project Areas.
Area No. 1
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (1)
Increment
2006/07
$4,779,973,573
$34,084,343
$ 0
$4,814,057,916
$4,614,659,683
$52,536,879
2007/08
5,210,779,209
34,173,241
0
5,244,952,450
5,045,554,217
54,345,390
2008/09
5,246,680,334
31,678,392
0
5,278,358,726
5,078,960,493
50,649,225
2009/10
4,912,824,357
36,007,022
0
4,948,831,379
4,749,433,146
48,147,236
2010111
4,514,660,931
35,319,224
0
4,549,980,155
4,350,581,922
N/A
(1) The Base Value for the Project Area No. 1 is $199,398,233.
Source: Riverside County and Audited Financial Statements of the La Quints Redevelopment Agency.
2009110, 2004 Revenue City of La Quints 2 n r1 4
a, li L
PROJECT AREA NO. 2
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base 0)
Increment
2006/07
$2,420,689,543
$42,208,337
$0
$2,462,897,880
$2,367,715,125
$25,971,446
2007/08
2,724,518,603
50,446,080
0
2,774,964,683
2,679,781,928
28,859,688
2008/09
2,805,349,012
61,576,037
0
2,866,925,049
2,771,742,294
28,479,642
2009/10
2,599,001,419
65,591,021
0
2,664,592,440
2,569,409,685
25,953,975
2010/11
2,429,549,008
60,236,788
0
2,489,785,796
2,394,603,041
N/A
(1) The Base Value for the Project Area No. 2 is $95,182,755.
Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency.
B. HOUSING SET -ASIDE REVENUE
The following table sets forth the Housing Set -Aside revenue for the
Redevelopment Project Areas.
PROJECT AREA NO.1
Total Taxable
Gross Tax
Housing
Fiscal Year
Value
Increment
Set Aside
2005/06
$3,985,890,713
$45,632,751
$9,126,550
2006/07
4,814,057,916
52,536,879
10,507,377
2007/08
5,244,952,450
54,345,390
10,869,078
2008/09
5,278,358,726
50,649,225
10,129,845
2009/10
4,948,831,379
48,147,236
9,629,447
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the
Statement of Indebtedness fled with the Riverside County Auditor
-Controller's Office.
PROJECT AREA
Total Taxable Gross Tax Housing
Fiscal Year Value Increment Set Aside
2005/06
$2,113,270,673
$24,812,367
$4,962,474
2006/07
2,462,897,880
25,971,446
5,194,289
2007108
2,774,964.683
28,859,688
5,771,938
2008/09
2,866,925,049
28,479,642
5,695,928
2009/10
2,664,592,440
25,953,975
5,190,795
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the
Statement of Indebtedness filed with the Riverside County Auditor -Controller's
Office.
2009110, 2004 Revenue City of La Quinta 3
«oen 025
C. LAND USE
Land Use
PROJECT AREA NO: 1
2010/11 Total Percent
Secured Value of Total
Residential
$3,956,267,970
85.36%
Commercial
387,543,367
8.36%
Timeshare Estates
38,828,936
0.84%
Vacant
250,561,001
5.41%
Miscellaneous/Unknown
1,400,338
0.03%
Total Project Area No.1 $4 634,601,612 100.00%
Source: County of Riverside 2010/11 Secured Property Roll, as compiled by Willdan Financial
Services.
PROJECT AREA NO. 2
2010111 Total
Percent
Land Use
Secured Value
of Total
Residential
$1,838,659,812
72.74%
Commercial
652,178,199
25.80%
Vacant
32,360,088
1.28%
Miscellaneous/Unknown
4,662,998
0.18%
Total Project Area No. 2
$2 527 861 097
100.00%
Source: County of Riverside 2010111 Secured Property Roll, as compiled by Willdan Financial
Services.
D. DEBT SERVICE COVERAGE
The following table sets forth the debt service for the Bonds and the portion of
debt service on the 1994 Bonds payable from Housing Set -Aside revenue.
1994 Bonds Total Debt
Debt Service Payable
Fiscal Debt Service Service From Housing Housing Debt Service
Year Payment Payment t'I Set -Aside Set -Aside (2) Coverage
2005/06 $5,945,956 $490,728 $6,436,684 $14,086.024 2.19
2006/07 5,950,356 491,050 6,441,406 15,701,666 2.44
2007/08 5,948,256 490,676 6,438,932 16,641,016 2.58
2008/09 5,946,731 490,465 6,437,196 15,825,773 2.46
2009/10 5,949,931 490,280 6,440,211 14,820,242 2.30
(1) Represents the 18.5% portion of annual debt service on the 1994 Bonds to which the Agency has allocated Housing
Set -Aside revenue derived from Project Area No. 1.
(2) Housing Set -Aside includes revenue from Project Area No. 1 and Project Area No. 2.
2009110, 2004 Revenue City of La Quints "
o.
r
•
E. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the Bonds and the
portion of debt service for 1994 Bonds payable from the Housing Set -Aside
revenue. Information contained in the table below was gathered and verified
from the corresponding Official Statements.
Maturity Date
September 1
1994 Bonds
Debt Service t'I
Principal
Interest
Debt Service
Total
Combined
2010
$490,280
$1,740,000
$4,175,131
$5,915,131
$6,405,411
2011
490,911
1,805,000
4,099,719
5,904,719
6,395,630
2012
490,307
1,890,000
4,016,581
5,906,581
6,396,888
2013
1,975,000
3,924,681
5,899,681
5,899,681
2014
2,075,000
3,823,431
5,898,431
5,898,431
2015
2,175,000
3,714,463
5,889,463
5,889,463
2016
2,290,000
3,597,256
5,887,256
5,887,256
2017
2,410,000
3,473,881
5,883,881
5,883,881
2018
2,535,000
3,344,075
5,879,075
5,879,075
2019
2,670,000
3,207,444
5,877,444
5,877,444
2020
2,810,000
3,063,594
5,873,594
5,873,594
2021
2,960,000
2,912,131
5,872,131
5,872,131
2022
3,115,000
2,752,663
5,867,663
5,867,663
2023
3,275,000
2,584,925
5,859,925
5,859,925
2024
3,450,000
2,408,394
5,858,394
5,858,394
2025
3,630,000
2,227,081
5,857,081
5,857,081
2026
3,810,000
2,041,081
5,851,081
5,851,081
2027
4,000,000
1,845,831
5,845,831
5,845,831
2028
4,200,000
1,640,831
5,840,831
5,840,831
2029
4,410,000
1,425,581
5,835,581
5,835,581
2030
4,635,000
1,196,559
5,831,559
5,831,559
2031
4,870,000
952,994
5,822,994
5,822,994
2032
5,120,000
697,000
5,817,000
5,817,000
2033
5,380,000
427,938
5,807,938
5,807,938
2034
5,660,000
145,038
5,805,038
5,805,038
(1) Represents the 18.5% of annual debt service on the 1994 Bonds to which the Agency has allocated Housing Set -Aside
revenue derived from Project Area No. 1.
2009110, 2004 Revenue City of La Quinta 5w.. (j 027
F. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. The Authority has no knowledge that any
of the events listed below have occurred or have not been previously reported
during the fiscal year ended June 30, 2010.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
V. SUBSEQUENT EVENTS
On November 8, 2010, Ambac Financial Group, Inc. ("Ambac Group"), whose
principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of
public finance and structured finance obligations, announced that it filed for a
voluntary petition for relief under Chapter 11 of the United States Bankruptcy
Code ("Bankruptcy Code") in the United States Bankruptcy Court for the
Southern District of New York ("Bankruptcy Court"). Ambac Group will continue
to operate in the ordinary course of business as "debtor -in -possession" under the
jurisdiction of the Bankruptcy Court and in accordance with the applicable
provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.
2009/10, 2004 Revenue City of La Quinta ap ;
028