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2012 12 12 IABT4ht 4 4 Q" Investment Advisory Board agendas and staff reports are now available on the City's web page: www.le-ouinte.ortt INVESTMENT ADVISORY BOARD. AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta REGULAR MEETING on WEDNESDAY, DECEMBER 12, 2012 AT 4.00 P.M. CALL TO ORDER 1. Roll Call 2. Pledge of Allegiance PUBLIC COMMENT At this time members of the public may address the Board 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 the Minutes of November 12, 2012 CONSENT CALENDAR 1. Receive and File Treasurer's Report for October 2012 BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIALS 1. City of La Quinta FY 201 1 /2012 Audited Financial Statements INVESTMENT ADVISORY BOARD AGENDA 1 DECEMBER 12, 2012 2. Month End Cash Report, November 2012 and Pooled Money Investment Board Reports — October 2012 BOARD MEMBER ITEMS ADJOURNMENT The next regular meeting of the Investment Advisory Board will be held on January 9, 2013, commencing at 4:00 p.m. at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Vianka Orrantia, Senior Secretary, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta Investment Advisory Board meeting was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on December 6, 2012. DATED: December 6, 2012 VIANKA ORRANTIA, Senior Secretary City of La Quinta, California Public Notices The La Quinta Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7123, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the City Council, arrangements should be made in advance by contacting the City Clerk's office at 777-7123. A one (11 week notice is required. If background material is to be presented to the Investment Advisory Board during a Investment Advisory Board meeting, please be advised that five (5) copies of all documents, exhibits, etc., must be supplied to the Senior Secretary 'for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Investment Advisory Board regarding any item(s) on this agenda will be made available for public inspection at the City Clerk's counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. INVESTMENT ADVISORY BOARD AGENDA 2 DECEMBER 12, 2012 INVESTMENT ADVISORY BOARD MINUTES WEDNESDAY, NOVEMBER 14, 2012 CALL TO ORDER A regular meeting of the La Quinta Investment Advisory Board was called to order at 4:00 p.m. by Chairman Blum. PRESENT: Board Members Donais, Mortenson, Blum and Spirtos ABSENT: Board Member Park STAFF PRESENT: Finance Director, Robbeyn Bird and Senior Secretary, Vianka Orrantia PUBLIC COMMENT - None CONFIRMATION OF AGENDA Ms. Orrantia advised the Board of the two handouts, the first handout was a revision to page 3 of the Treasurer's Report and the second was a handout from First Empire with a list of Negotiable CDs Ito be discussed under board member items). Motion - A motion was made by Board Members Mortenson/Donais to approve the agenda, as amended. Motion passed unanimously. APPROVAL OF MINUTES Approval of the Minutes of October 17, 2012 Board Member Mortenson requested further clarification to page 1, Item 1 of "Consent Calendar Items," third sentence to read: Board Member Mortenson maturities further out ER that the Board and staff extend Board Member Spirtos commented on the new format of the meeting minutes and suggested that page 2, under "Board Member Items," second sentence now read: INVESTMENT ADVISORY MINUTES 1 NOVEMBER 14, 2012 In response to Board Member Blum, Ms. Bird advised the Board that Motion — A motion was made by Board Members Mortenson/Donais to approve the Minutes of October 17, 2012, as amended. Motion passed unanimously. CONSENT CALENDAR ITEMS 1. Transmittal of Treasury Report for September 2012 Ms. Bird presented and reviewed the staff report for the month September 2012. At this time the handout listing the Negotiable CDs was discussed. Ms. Bird advised the Board that staff will be looking to invest in CDs with a maturity not more than two years. Board Member Mortenson reiterated what he has stated in previous meetings about taking a portion of the portfolio to gain an increase in the City's portfolio. Ms. Bird advised the Board that the banks listed in the handout are not located in the State of California but are FDIC insured. She further advised that the list consists of Callable and Non -Callable CDs, and advised that staff would consider investing in Callable CDs due to their higher rate of return. General discussion ensued amongst the Board regarding possible CD investment terms, (i.e. 2 years, 3 years or 5 years). In response to Board Member Blum, Ms. Bird advised that previously discussed in prior meetings, that amount considered to invest in CDs was $5 million. In response to Board Member Mortenson, Ms. Bird advised that the four point increase in the portfolio (referenced in the Treasurer's Commentary) was due to the rollover of investments into LAIF. Board Member Mortenson suggested that staff also include the future investment of CDs within the Treasurer's Commentary. Motion — A motion was made by Board Members Spirtos/Mortenson to review, receive and file the Treasurer's Report for September 2012, as submitted. Motion passed unanimously. INVESTMENT ADVISORY MINUTES 2 NOVEMBER 14, 2012 BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIAL 1. Month End Cash Report - October 2012 Ms. Bird presented and reviewed the Month End Cash Report for the month of October 2012. 2. Pooled Money Investment Board Report - September 2012 Ms. Bird Presented and reviewed the Pooled Money Investment Board Report. BOARD MEMBER ITEMS Ms. Bird advised that at the next scheduled meeting in December, Bryan Gruber of Lance Soil & Lunghard will be in attendance to review the City's Comprehensive Annual Financial Report. Ms. Bird advised the Board that in the near future the financial reporting will be changed at the request of the City Manager. Ms. Bird requested any changes and/or suggestions from the Board. Board Member Mortenson stated that the Pooled Money Report and LAW Summary report were similar in reporting the same financial information and could possibly be combined into one report. Ms. Orrantia advised the Board that the upcoming joint meeting scheduled for 5:00 p.m. on January 22, 2012 with the City Council and all boards/commissions. ADJOURNMENT There being no further business, it was moved by Spirtos/Mortenson to adjourn this meeting at 4:32 p.m. unanimously. Resp tfully sub fitted Vianka Orran ia, Senior cretary City of La Quinta, California Board members Motion passed INVESTMENT ADVISORY MINUTES 3 NOVEMBER 14, 2012 INVESTMENT ADVISORY BOARD CONSENT CALENDAR: 1 Meeting Date: December 12, 2012 ITEM TITLE: Transmittal of Treasury Report for October 31, 2012 BACKGROUND: Attached please find the Treasury Report October 31, 2012. RECOMMENDATION: Review, Receive and File the Treasury Report for October 31, 2012. Robbeyn tird, Finance Director MEMORANDUM TO. La Quinta City Council FROM: Robbeyn Bird, Finance Director7rreasurer SUBJECT: Treasurer's Report for October 31, 2012 DATE: November 30, 2012 Attached is the Treasurer's Report for the month ending October 31, 2012. 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 B innin Pumhasetl Notes SOld/Matufed Other Endin Chan e LAW Interest bearing active bank deposit 26.519.005 39,955,737 $ 5,027,820 16,692 $ (1,900.000) 0 $ 29.646,825 3,127,820 Certificates of Deposit 480,000 0 39,972,429 16,692 US Treasuries US Gov1 Sponsored Enterprises 70,986,311 - 15.008,000 (15,000,000) (2,088) 480,000 70,992.223 p 5.912 Commercial Paper Corporate Notes 4,999,721 (5,000,000) 0 270 0 0 0 4 999,720 ( ) Mutual Funds Subtotal 2,540,266 52 43.337 206 0 2,4971187 0 43,079 $ 145,481,040 $ 20,052,564 $ 21,943,337 $ 1,603 $ 143,588,664 $ 1,892,376 Cash $ 347,529 1 8 3 $ 1,378.290 $ 1,030,761 $ 1,378.290 Total $ 145,828,569 $ 20.052.564 $ 23,321,627 $ 1,603 $ 142,557,903 $ 32270,666) 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 Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. Robbeyn Br4Vj2n= Date Finance Directodrreasurer 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. 2 Treasurer's Commentary For the Month of October 2012 Cash Balances - The portfolio size decreased by $3.30 million to end the month at $142.56 million. The major reason for the decrease was due to payments of $1.7 million for the police contract, which represents 2 months of expenditures, the Capital Improvement Program expenditures were $947,000, and the 1996 Lease Revenue Bond payment was made during the month in the amount of $578,000. Investment Activity - The investment activity resulted in an average maturity decrease of twelve (12) days from the prior month to end the month of October at 22 days. The Treasurer follows a buy and hold investment policy. During the month of October, BMW Commercial Paper matured and was invested in LAIF, Certificates of Deposit remained the same as the prior month, and US Treasuries of $15,000,000 matured and were reinvested in US Treasuries. The sweep account earned $22 in interest income for the month of October and the bank fees for the month were $1573 which resulted in a net decrease of $1,551 in real savings. Portfolio Performance - The overall portfolio performance increased three (3) basis points from the prior month and ended at .36% for the month, with the pooled cash investments at .47%. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding .38% which reflects the current interest rate environment. As discussed with the Board at previous meetings, the City will be investing a small part of the portfolio in Negotiable Certificates of Deposit with maturities not to exceed five (5) years. This will result in slight increases in the overall portfolio yield. Looking Ahead In the short term, the Treasurer will be investing in negotiable certificates of deposit, short term commercial paper or GSE paper and rolling over bond proceeds and reserves into U.S. Treasury bills or notes. 3 9 !##§§ !§ §§ _ ! . \§ § )E } ; ■ § ! \}�( 2 § !)(; ! !) ! ) 9m {/ - { !�{ |� # • ` � \/# - ZE \ $! L k k |!; \ ` \ ' k - ! . �k® |§!®® - / \ \ )�\/ � ##, s "a •yy na �= �=on bmm u £E£y- U VIUU E lee a §` 3' 2 r'� E > i�o ii i�oe r a= s s�„ E P �9 i o r am r ^= 2 ,5,5A s� a: jig gu 9 N O.Oo m aery a8O rvl m � P yy $O �u f H o3 s� '� ] N_ U r a Q¢aaQ¢¢a¢QN 333z333333 $ �J $N o'NNNOOI OO fI PPgN' Rrv^ mPN00 RO N N NO ry cg IIm cq Zi l�ig ]al (p 1 N M1 m 1 n m �Op00000p ' spy'"¢ � ryry Ie { ry �2pf C�00 - 0 6 fi >S"� o0 CR+ 0 o �i u US $$ S C ry m �S It; til gy" 8 2C 005Na 60i a 09 Yr`C N 4ry Fy U E �1�a. 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E W O 9 5 9 =1 U V)W WW % _ 0 W r2 J y q � O 0 (L v % c m ro U) EE % E o E % W �Z m LL LL LL IL gg5g � C m �'mwraa :so ar^amma. .6 E $aa s-�.s$= F �ma ms m fi .^S oa888 m� �:=mR"&'6R8r e$So8 2d»'gym: ma;;-S. «�$ �s.ma"sEIM =ffiga " IV �meoaa 'a a ea ma^ lRmag �nms&� m -R'' sgHj aam $a�sa $sgs n $$ N, $m All -a-" � ymaa„»aa?� ex»» y,p"a.a �y"am"sans nE_a mo m& -------- ---- -- MR s - E m"ss"=m^mg�m �.m„ $fir 8�n-dKmornx E°0m1% �$m m EZ�a log Fwonnnn=• ms.asR.s.tt Fro �� $�me F$4n aavni;, �s <m ..m_ _•a <� m � »ov„-gS8 _p gnn Qy �Snn`$m$8o F9,MPMc_ '-°8a»$SB mo$ An MRTM 5 �$FF�gmgLL avcNg38g5_- « e��£�d -°"e o�Fgd u 9y'nm6 g25g d39c»mg��m .79�n»E�u�Fy niy'nh ��md3 P N m a y pp �p Q O N O R LL S V N N S m Y m A N C OO 1y 1+1 C O^ � OI VO pO b N M � ry O Om ONI LL F O V 0 m QI IO N N O V F- m A L yO S O N N b 0 P P 0000 S N� Q `'�' 9 0 O) OI N I(1 4 O V CI m C) VI CNf S ry$ 1C qb O Lro C O m m � m G r�pp N pp0 NO �+ K M N N N O N O O F Y N O ^ON mN �p m10 m+ Ny 0 rtl ICY OOOm 1� O Nm O O x m O N pO O P O bq ry m '0 A O N m Sr4 y� n iy q m0 O L MO0!NOO On OMitOOr N a Q V N n N �OmfV b m O h 0 R21 @Z N M (py� 0 M M YI M N O B 01 O O 0 �m b 17 Oi � vo o a$ m o n M ei 'il N E YI f� 17 A tO � S M S 'p'm dim � °�n O r ri iJ ro Zf L O� ry�p� M O$J 1�Q d O N pV� p 1q�1 N Cl N a r 00 m n JR Q e q fl N m O O mi�r`Pv�9i a mw a 0 0 E WO L a e N N> C L o So o u a F u � q V e t 00 1 a 3 m S ��+ 'nf b 2 .�L- x6 21 u °' ;R 00N LDdpmSE W W0.11O3 m dr woN FJ 4' Z U W 2 O O y N N N ' r O O O O O O n O O 0 m N O O N O O N N 1A 00 b�If 000� I�I 00 � A q T o c e U i N �iE 9 y_ 4J City of La Duinto Comenaave Rates of Interest October 31. 2012 ugus 3.16% 1,92% 2.88% 51 1.69% 169% 2.14% 2.38% 2.06% 1U% Sept 2008 2.81% 1.92% 264% 37 142% 1.79% 1.96% 2.00% 2.13% 278% Oct 2008 266% 2.61% 261% 29 am% 140% 1.72% 150% 207% 277% Nov 2D06 238% 2.36% 2.36% 64 0.15% 0.49% 104% 1.25% 1.45% 271% 257% Dec 2008 1.00% 0.18% 1,42% 116 005% 025% 0.59% 088% 0.97% 2.35% Jan 2009 1.36% a18% 1.23% 82 0.15% 035% 043% 0.88% 031% 205% Feb20m 1.23% 0.18% 1.11 % 75 0.30% 0.50% 0.61% 088% 048% 187% Mar2009 126% 0.18% 1.13% 69 020% 042% 0.70% 0H% 0.37% 1,82% Ap 2009 094% 0,18% 0.85% 54 031% 0.33% 059% 0.88% 028% 161% May 2009 0.92% 0,18% 084% BO 0,18% am% 0.53% 088% 023% 153% FY 09110 June 2009 July 2009 0.85% 069% 0.29% ON % 111 020% - 0,35% 055% 1.13% 0.26% 11.388% 0.30% 0,65% 111 0.19% Q,Z§% Q.��^/r, 1,W) O,�OtIO �IN 6.51k L�y� sep�aoos osfi% 0,31% p.53% 92 112 0.16% 0.12% 026% 0.19% 0,48'%9 0./7% 1.00u 1.00% aza% o.as% Oct2009 0.52% 0.3f% 0.60% 90 0.08% 0.19% 0.38% 100% 0.24% 0J5% Nov 2009 0.56% 031% 053% 152 004% 0.14% 0,32% 075% 0.19% 0.15% 065% Dec 2009 0.56% 0,15% 051% 239 0.11% 0.20% 0,16% 100% 0.16% 0.61% Jan 2010 046% 0.15% 043% 179 006% 0.14% 0.34% 0.88% 0.13% 057% Feb 2010 051% OAS% 048% 162 0.13% 0.19% 0.32% 0.88% 0.15% 0.56% Mar2010 050% 0.16% OAY% 172 0.15% 024% am% 1.00% 0.20% am% Apr20lO 052% 0.16% 048% 162 0.15% 0.24% 0.49% 100 % 023% 0,55% 0.59% May2010 052% 0.16% 048% 116 0.19% 0.22% 0.37% 0.75% 028% 056% FY 10/11 June 2010 July20lO 0,47% 0.10% OAO% 036% 134 0.16% 0.22% 032% 0.63% 0.32% 0.53% Au9ue12010 0.49% 0.15% 0.15 % 047% 0.46% 119 016% 020% 0.30% 063% 0.28% 0.53% Sept 2010 0,56% OA5% 0.51% 108 107 0.15% 0,19% 026% 0.38% 0.25% 0.51% Oct 2010 055% 0,15% 0.51% 88 0.16% a13% 0.19% 0,27% 0.38% 024% 0,50% Nov2010 0.53% 015% 049 % 84 OA8% 0.12% 021% 0.23% D.38% 0.23% 0.48% Dec 2010 057% 0.14% 0,52% 265 0.15% 0.19% 0.28% 0.30% 050% 023% 045% Jan 2011 0.61% 0.14% 043% 206 0.16% 0.18% 0.28% 063% 0.63% 023%. 0.24% 046% Feb 2011 0.55% 0,17% 0.46% 210 0. t5% 0.12% 031% 063% 0.23% 0,54% 051% Mar2011 0.54% 0.17 % 045% 218 0.05% 0.13 % 026% 0.75% 0.23% 0.50% Apr2011 059% 0. 17% 048% 192 0.05% 0,10% 0.28% 0.63% 0.20% 0.59% May 2011 048% 0,12% 0,41% 156 006% 0,12% 020% 0.50% 0.16% 041% FY 11112 June 2011 July 2011 053% 053% 0.00% 0.00% 0.35% 126 003% 0,10% 0.20% 038% 0.15% 045% August 2011 am% 0.00% 0.35% 0.38% 112 102 007% 0.12% 0.16% 0.20% 0,14% 0.38% Sept 2011 0.58% 003% 039% 124 0,02% 005% 0.10% 0.13% 0. 16% 041% Oct 2011 0,53% 0.03% 0.35% 112 002% 006% DOM 0.13% 0.14% am% Nov 2011 052% 003% 037% 94 001% 0.06% 0.12% 0.25% 0.15% 0.39% Dec 2011 OA% -0.03% 0.35% 86 0,03% 0.07% 0.10% 0.25% 0.14% 040% Jan 2012 0.45% 003% 034% 0.02% 006% 0.11% 0.13% 0.14% 0,39% Feb 2012 049% 005% 0.36% 74 72 005% 008% 0.11% 0.25% 0.14% 0.39% Mar 2012 0.44% 0.05% 0.34% 74 0.12% 0.15% 0.12% 0.25% 0.12% 0.39% Apf 2012 044% 0,09% 0.35% 61 0.08% 0.14% 0,19% 0.25% 0.18% 0.38% May 2012 043% 0.09% 0.34% 62 0. 10% 009% OA5% 0.19% 0.25% 020% 0.37 % June 2012 0.38% 008% 029% 47 0.10% 0.14% 0,15% 0.19% 021% 0.25% 0.25% 0.19% 036% FY 12/13 July 2012 0.41% 0.08% 031%1 112 0,11% 0.15% 0.18% 0.22% 0.24% 022% 0.36%. 036% Augus12012 041% 008% 0.29% 31 0.11% 0.14% 0.20% 0,25% 0.20% 0.38% Sept 2012 0.43% 009% 0.33% 34 0.11% 014% 0.18% 025% 020% 0.35% 10 _N V � N d 0 E U N d Q c 16 a c E .N- W N E T N c N � CC b N N i � c 0 m ¢NN Q N N � W LL d 0 0 L Y N Z C � O 'E m � w y W �F `m N >1 � c o H1T � Ij7Q I 1 c d c C14 c N U N a N W d m C w wm d N V O V N cc 41 w C,no I O .r } � N U N o 0 0 0 0 o a c o 0 0 0 O >%O O O It 1O O O m CA O N d L T7 O T7 O O O O o O O o 6 6 ci o 0 o c g 1 •1 1 1 1 1 1 1 1 1 1 I I I I I I ■ 1 1 1 1 1 1 7 ■ i i i i' 11 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item 1 Meeting Date: December 12, 2012 ITEM TITLE: City of La Quinta Fiscal Year 2011 /2012 Audited Financial Statement BACKGROUND: Mr. Bryan Gruber, Partner with Lance Soil & Lunghard, LLP, CPA's, will review the City Cash and Investments presented in the report and answer Board Members questions. RECOMMENDATION: Information item only. K.0'wu-uAvv �✓'d Robbeyn gird, Finance Director CITY OF LA QUINTA, CALIFORNIA , ,COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2012 Prepared By FINANCE DEPARTMENT THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2012 TABLE OF CONTENTS Page Number Letterof Transmittal................................................................................................................................. i .. List of Principal Officials ........... :.................................. ......................................................................... vw OrganizationalChart.............................................................................................................................. ix Certificate of Achievement for Excellence in Financial Reporting(GFOA).............................................x FINANCIAL SECTION Independent Auditor's Report ............. Management's Discussion and Analysis......... Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets ....................... Statement of Activities.... Fund Financial Statements ..........:............................1 .................................3 ...................................... :.................. 17 .......................................18 Balance Sheet—. Governmental Funds..........................................................................................20 Reconciliation of the Balance Sheet of Governmental Funds to the 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 Budgetary Comparison Statement — Housing Authority PA No. 2.................................................28 Statement of Net Assets — Proprietary Funds.........:......................................................................29 Statement of Revenues, Expenses and Changes in Fund Net Assets — ProprietaryFunds .......... :................................................................................................................ 31 Statement of Cash Flows — Proprietary Funds...............................................................................32 Statement of Fiduciary Net Assets - Fiduciary Funds....................................................................34 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2012 TABLE OF CONTENTS Page Number Statement of Changes in Fiduciary Net Assets - Fiduciary Funds.................................................35 Notes to Financial Statements..............................................................................................................37 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Non -Major Governmental Funds.......................................................82 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non -Major Governmental Funds.......................................................................92 Budgetary Comparison Schedules — Special Revenue Funds StateGas Tax.......................................................................................................................101 Library....................................................................................................................................102 FederalAssistance ............................................................. :................................................... 103 SLEBG...................................................................................................................................104 IndianGaming........................................................................................................................105 Lightingand Landscaping......................................................................................................106 Quimby.......... :................. ................................................. ...................................................... 107 Congestion Management Air Quality Fund............................................................................108 PublicSafety..........................................................................................................................109 ArtIn Public Places................................................................................................................110 South Coast Air Quality ..........................................................................................................111 AB939...................................................................................................................................112 LawEnforcement...................................................................................................................113 Proposition1B Fund...............................................................................................................114 Justice Assistance Grant........................................................................................................115 HousingAuthority PA No. 1...................................................................................................116 Low/Moderate Income Housing PA No. 1..............................................................................117 Low/Moderate Income Housing PA No. 2.............................................................................118 Budgetary Comparison Schedules — Capital Projects Funds CapitalImprovement ..............................................................................................................119 CivicCenter............................................................................................................................120 Infrastructure..........................................................................................................................121 Transportation........................................................................................................................122 Packsand Recreation .............................. ............................................................ .................. 123 LibraryDevelopment..............................................................................................................124 CommunityCenter.................................................................................................................125 StreetFacility ..........................................................................................................................126 ParkFacility............................................................................................................................127 FireFacility .............................................................................................................................128 2011 Low/Mod Bond..............................................................................................................129 2004 Low/Mod Bond..............................................................................................................130 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2012 TABLE OF CONTENTS Page Number Redevelopment Agency PA No. 1 — Capital Projects............................................................131 Redevelopment Agency PA No. 2 - Capital Projects............................................................132 Budgetary Comparison Schedules — Debt Service Funds Redevelopment Agency PA No. 1 — Debt Service.................................................................133 Redevelopment Agency PA No. 2 — Debt Service.................................................................134 FinancingAuthority ........................... :.................................................................................... 135 Combining Statement of Net Assets — Internal Service Funds....................................................138 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds...............................................................................139 Combining Statement of Cash Flows — Intemal Service Funds ............................................ :...... 140 Combining Balance Sheet —AII Agency Funds..................................................................:.........142 Combining Statement of Changes in Assets and Liabilities —AII Agency Funds ...................... —143 STATISTICAL SECTION Net Assets by Component................................................................:...........................................146 Changesin Net Assets.................................................................................................................148 Changes in Net Assets — Governmental Activities.......................................................................150 Changes in Net Assets - Business -type Activities.......................................................................152 Fund Balances of Governmental Funds ............................... :............................ ........................... 154 Changes in Fund Balances of Governmental Funds....................................................................156 Assessed Value and Estimated Actual Value of Taxable Property ..............................................158 Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency...............................................................................................................159 Direct and Overlapping Property Tax Rates.................................................................................160 Principal Property Taxpayers.......................................................................................................162 Property Tax Levies and Collections............................................................................................163 Ratios of Outstanding Debt by Type.......................................... ................................................. ..164 Ratio of General Bonded Debt Outstanding.....................:...........................................................166 Directand Overlapping Debt........................................................................................................167 Legal Debt Margin information.....................................................................................................168 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2012 TABLE OF CONTENTS Page Number Pledged -Revenue Coverage........................................................................................................170 Demographic and Economic Statistics.........................................................................................171 PrincipalEmployers......................................................................................................................172 Full-time City Employees..............................................................................................................173 OperatingIndicators.....................................................................................................................174 Capital Asset Statistics.................................................................................................................175 Schedule of Insurance in Force....................................................................................................176 •AA d jl P.O. Box 1504 LA QUINTA, GALIPORNIA 92247-1504' 78.495 CALLA TAMPICO (760) 777-7000 LA QU]NrA, CALIFORNIA 92253 FAX (760) 777-7I01 December 4, 2012 To the Honorable Mayor, Members of the Governing Council, and Citizens of the City of La Quints, California Government Code Section 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. Furthermore, Government Code Section 26909 (b) states that an audit report $hail 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 30,2012. 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 then, absolute, assurance that the financial statements are free of any material misstatements. Lance Soil & Lunghard LLP Certified Public Accountants have issued an unqualified ("clean") opinion on the City of La Quinta financial statements for the year ended June 30, 2012. 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 Greater Palm Springs Convention and Visitors Bureau, 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 and Verizon. The City of La Quinta is also financially accountable for a legally separate Successor Agency for the former Redevelopment Agency, Financing Authority, and Housing Authority. Additional information on these 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 also need approval from the City Manager. Local economy According to the. State of California Economic Development Department (EDD), as of June 2012, the total workforce for the City of La Quinta was 15,100 of which 14,100 were employed for a 6.62% unemployment rate. This rate is significantly lower than the Riverside County unemployment rate of 12.6% and the statewide unemployment rate of 10.7%. - During the last ten years, the City of La Quinta has been in a growth phase with net assessed values increasing from $4.61 billion in Fiscal Year 2002-03to $10.38 billion in- 2011-12. It should be noted; however, that the net taxable values in the past three fiscal years have consistently decreased by 5.31 % in 2009-10, 7.48% in 2010-11, and.4.95% in 2011-12. The major increase in assessed values over the past decade consists primarily of residential development; however, major commercial development has occurred along the Highway 111 corridor during this time. 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, Desert Sands Unified School District, Wal-Mart Super Center, Home Depot, Hideaway, Lowe's Home Improvement and Tradition Golf Club. During the past ten years, the City of La Quinta general fund expenditures have increased 209%. Two Departments that have exceeded the average include and Public Safety (239%) and Community Services (258%). 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 143%. Sources that exceeded the average include intergovernmental (189%), and taxes (184%). 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. While the City has experienced record setting growth in the past decade, the recession of Fiscal Year 200&11 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 2011-12 and several large retailers have closed their doors in recent years. The City has experienced a modest increase in sales tax and transient occupancy tax in Fiscal Year 2011-12 versus Fiscal Year 2010-11; however, property tax collections still continue to decline in Fiscal Year 2012-13 from the historic highs of Fiscal Year 2006-07. While economists may state that the recession is over, future revenue declines in Fiscal Year 2011-12 and beyond may be on the horizon given the possible continued decline in property tax assessments. Since Fiscal Year 2008-2009, the City has tightened its fiscal belt at its mid year reviews and will have to continue to monitor and possibly further reduce expenditures in Fiscal Year 2012-13 given the revenue shortfalls that may continue to occur. This is evidenced by the reduction in staff levels from 105 positions budgeted for in Fiscal Year 2008-09 to 101 positions in Fiscal Year 2009-10 and a further reduction to 99 positions in Fiscal Year 2010-1land 89 positions in 2011-12. With the dissolution of the Redevelopment Agency in June 2011, staffing levels will continue to be monitored in the future. 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, Housing Authority 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 38,075, 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. iv During Fiscal Year 2011-12, the General Fund balance decreased by $1,205,473 consisting of revenue decreases mainly in the interest income category. The decrease in interest income is due to historically low interest rates and the repayment of the Redevelopment Agency loans in the prior year. The General Fund balance as of June 30, 2012 was $91.9 million of which $23.9 million versus $23.7 million in Fiscal Year 2010-11 was nonspendable, $19.0 million versus $19.3 million in Fiscal Year 2010-11 was committed, $1.7 million versus $1.8 in Fiscal Year 2010-11 was assigned, and $47.1 million versus $48.1 million in Fiscal Year 2010- 11 was unassigned. The unassigned fund balances include a cash flow reserve of 8.25% of the annual budget and a $6.3 million future operational deficit reserve. 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 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 $123.4 million. Five -Year Resource Allocation Plan This plan is primarily a planning document that provides a five-year horizon for forecasted operational needs of each department, as well as the City as a whole. This plan is a cyclical review of all operations expenditures to reassess funding mechanisms behind personnel responsibilities and the various service levels of all programs. Annual Budget This document is the annual implementation tool for the overall planning process. The budget will encompass each element of the strategic planning effort and will implement: the goals of the Economic Development Plan; the resource and demand allocation outlined in the Five -Year Resource Allocation Plan; and the capital improvement investment for a given year. v Relevant Financial Policies On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x26 that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. This action also deeply impacted the City's ability to continue an economic development program as the majority of funds used for capital improvements in the City came from funds of the Redevelopment Agency. Major Initiatives Despite the dissolution of the La Quinta Redevelopment Agency, projects that meet certain criteria can continue to completion. The City is currently working on two projects. The Washington Street Apartment Project to rehabilitate a 73-unit affordable rental housing project is underway and is scheduled to be completed by the summer of 2015. In addition, the Agency had purchased land near the southeast corner of Highway 111 and Dune Palms Road prior to the La Quinta Redevelopment Agency dissolution to construct additional affordable Apartment units. Construction on this project known as Coral Mountain will begin in September 2012. The City has begun construction on the Adams Street Bridge which will span the Whitewater Channel and provide an all-weather crossing at this location. The City 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. The second course, permanent clubhouse, and infrastructure have not proceeded as planned and remain in the planning stages due to the slow down in the economy. The Agency continues to seek quality development opportunities for future hotel(s) on the property to generate additional General Fund revenues. Awards and Acknowledaements 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, 2011. This was the sixteenth 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 vi 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 Ouinta's finances. Respectfully submitted, . Robbsyn Bird, CPA Finance Director City of La Quinta Directory of Officials June 30, 2012 CITY COUNCIL Don Adolph, Mayor Terry Henderson, Mayor Pro Tern Linda Evans, Council Member Kristy Franklin, Council Member Lee Osborne, Council Member ADMINISTRATION Frank J. Spevacek, City Manager Robbeyn Bird, Finance Director Greg Butler, Building & Safety Director Edie Hylton, Community Services Director Kathy Jenson, City Attorney Les Johnson, Planning Director Tim Jonasson, Public Works Director/City Engineer Susan Maysels, City Clerk viii Certificate of Achievement' for Excellence in Financial Reporting .I , City of La Quinta, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011 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 m government accounting and financial reporting. . President *O�Oe = j Executive Director x LSE ®0 00 CERTIFIED PUBLIC ACCOUNTAN5 • Brandon W. Burrows, CPA • David E. Hale, CPA, CFP APioleasbrwlCoryoraW • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F. Matz, CPA • Shelly K Jackley, CPA - • Bryan S. Gruber, CPA • Deborah A. Harper, CPA INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of 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, 2012, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of City of La Quinta, California's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the 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 opinion. 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, California, as of June 30, 2012, and the respective changes in financial position, and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund and Housing Authority Project Area No. 2 for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 16, 2012, on our consideration of the City of La Quinta, California's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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 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. We would like to draw the reader's attention to Note 23 — "Successor Agency Trust for Assets of the Former Redevelopment Agency". The note provides information on the dissolution of the Redevelopment Agency and the new formed Successor Agency. Lance, Soil O Longhand, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 TEL: 714.672.0022 • Fax: 714.672.0331 . www.lsicpas.com Orange County • Temecula Valley • Silicon Valley �064 �600 00 cmnnEu sueuc AMUN*eerf To the Honorable Mayor and Members of City Council City of La Quinta, California Accounting principles generally accepted in the United States of America require that the management's discussion and analysis as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City of La Quints, California's financial statements as a whole. The introductory section and combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Brea, California November 16, 2012 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, 2012. 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 $688,166,000 (net assets). Of this amount, $85,087,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. Approximately $576,494,000 or 84 percent was invested in capital assets net of related debt and is not available to meet ongoing obligations. • .The governmental activities total net assets increased by $169,967,000 and the Business -Type total net assetsdecreased by $212,000 attributable to the SilverRock Golf Course. Of the $169,755,000, the extraordinary gain on the dissolution of the Redevelopment Agency represented $158,655,000. This extraordinary gain is explained more extensively in this document in Note 23. As of the close of the current fiscal year, the City of.La Quinta's governmental funds reported combined ending fund balances of $107,132,000 a decrease of $86,239,000 in comparison with the prior year. The primary reason for this decrease is due to the dissolution of the Redevelopment Agency which resulted in the need to eliminate or postpone capital projects funded with tax increment funds. At the end of the current fiscal year, comprised $47,738,000 of the total 52 percent of the total Fund Balance budgeted expenditures. the unassigned General Fund Balance $91,876,000 General Fund Balance or and 131 percent of total General Fund The total debt decreased by $253,429,000 during the current fiscal year from $258,976,000 to $5,547,000. This decrease is mainly due to transfer of the Redevelopment Agency bonded indebtedness to the Successor Agency due to dissolution of the Redevelopment Agency. 3 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of La Quinta's basic financial statements. The City of La Quinta's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of La Quinta's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City of La Quinta's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of La Quinta is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave). Both of the government -wide financial statements mentioned above 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 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. a Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of La Quinta, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal, requirements. All of the funds of the City of La Quinta can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially'the same functions reported as governmental activitiesin 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 governments 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 governments near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of La Quinta maintains thirty five-(35) individual governmental funds, which are distinguished between major and non -major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, two (2) debt service funds and three (3) capital project funds, and one (1) special revenue fund. These seven (7) funds are considered to be major funds. Data from the other twenty-eight (28) 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. Proprietary funds Proprietary funds can be broken down into enterprise and internal service funds. The City of La Quinta maintains one (1) enterprise 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, Expenses 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 statements 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 to the financial statements 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 BudgetaryComparison Schedule. The combining statements referred to earlier in connection with non -major governmental funds, internal service funds, and agency funds are presented immediately following the required supplementary information. 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 $688,166,000 at the close of the most recent fiscal year, which is $169,755,000 more than the previous year. The largest portion of the City of La Quinta's net assets, which was 84% this year and 61 % 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 Business -type activities Total - 2012 2011 2012 2011 2012 2011 Current and other assets $137,676,930 $224,830,553 $ (4,535,584) $ (4,676,580) $133,141,346 $220,153,973 Capital assets - 534,388,479 530,713.522 42,274,767 42,777,148 576,663,246 573490,670 Total assets 672,065,409 755,544,075 37 739183 38,100,668 709 804,692 793 644 643 Current liabilities 15,880,753 17,142,272 210,308 242,371 16,091,061 17,384,643 Non -current liabilities 5,377,984 267,562,497 169,084 286,097 5,547,068 257,848,594 Total liabilities 21,268,737 274,704 769 379,392 528,468 21,638,129 276,233,237 Net assets: Invested in capital assets, - net of related debt 634,388,479 276,787,752 42.105,683 42,491,051 676,494,162 319,278,803 Restricted 26,585,382 107,042,126 26,585,382 107,042,126 Unrestricted 89,832,811 97,069,428 4,745892 4,918,951 85,086,919 - 92,090.477 Total net assets - $650,806,672 $480,839,306 $ 37,369,791 $37,572,100 $688,166,463 $518,411,406 An additional portion of the City of La Quinta's net assets (4 percent versus 21 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 - $85,087,000 (12 percent) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of La Quinta is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental activities; however, the business type unrestricted net assets had a deficit of $4,746,000, which is approximately $200,000 less than the previous year. Governmental activities Governmental activities net assets decreased by $169,967,000 accounting for a 35 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 Gs nuu,tal Business4yps ActiYtles ActiWies Total 2012 2011 Clangs 2012 2011 Chan M12 2011 Chas Revenues: Pre irn revenues: Cher .mrsenices S 2,504,302 E 2,463,486 E 40.814 E 3,871,898. E 3,758,615 $ 115,283 E 6,376,200 E 6,220,103 E 15QO7 Opereting grants and contdbutions 11,289,673 13,152,942 (1,883269) - - - 11,289,673 13,152,942 (1,863,289) Capital pants and caddbutions 9.M.793 3,157,a28 6,832,965 - - - 9.MI,793 3,157,828 6,832,965 General rasnusa: Prepeny taxes 21.370.476 5,842,353 15.428,123 - - - 21.370,476 5,942,353 15,428,123 Other We. 15,570,619 46,961,aW (31.391,313) - - - 15,570,619 46,981,932 (31.391,313) Investment income 1,925,255 4,693,974 (2,788,719) 1,075 2,125 (1,050) 1,926,330 4,696099 (2,769,769) Motes vehicle in lieu 3,173,826 3,515.30 (341,589) - - - 3,173,826 3,515,395 (341,569) Exlreardinery gain 0..) on dissolution of Redevelopment Agency 158.654,715 - 158,8 .715 - - - 158.654,715 - 158.654,715 Mlecallanecus 268 644 3,211,5M 2 842 S&I 268,644 3.211.584 2 942 940 Total nvefluss E 221748 303 E 83 (Mi 488 E 141 848 807 E 3.872.973 E 3 ]58 ]40 E 11/ 233 E 228.621.276 $ 86.858.236 E 141 M 040 Expenses: General govemment E 6,183,712 E 11,283,358 S (5,089,646) E - $ - E - E 6,183,712 $ 11,283,356 E (5,099,846) Public seely 20,815,454 21,070,458 (255,004) - - - 20.815,454 21,070.458 (255,(M) Planning and develcprnaW 6,378,352 18,715,283 (12,336.931) - - - 6.378,352 18,715,283 (12.336,931) Canmunity sauces 5,093,402 4,735,964 357,438 - - - 5,093,402 4,]35,984 357.41W Public s 13,288,521 10,757,279 2.531,242 - - - 13,288,521 10.767.279 2,01.242 OWMI oontdbtttions - 31,324,064 (31,324,(164) - - - - 31,324,054 (31,324,064) Merest on long4erm debt 3,021,496 14,353,359 (11,331,863) - - - 3.021,4% 14.353,359 (11,331,863) GW course 4085,282 4202274 116992 $ `+t780M7 E 112,239,7M E 57,458,828 S 4,085,282 E 4202274 E 116992 E 54780937 E112238765 E 57458828 Total expenses Increase in nat assets before Danes. and corddbutions S 169,967,386 E (29,140,269) E 199,107,635 $ (212,309) E (a3,534) E 231,225 E 173.W.M9 E (25,381,528) E 199,221,868 Tneafare Corddbutlona Restatements - - - - - - - Decns se in net assets 169,967,366 (29,140,269) 199,107,835 (212,309) (443,534) 231,225 173,M,M (25,381,529) 199,221,868 Net assets - 7/1111 480,839,i6 80 839 308 5 19]9 575 29 140 269 37572,100 38 015 634 (443,534) 518 411 4% 547,995,209 29583 80 E 650 806 6]2 E 480 839 308 E 189 967 366 S 3] 359 791 S 3] 572 100 E 30 12 B t18 E 8 188 463 E 518 411 406 S 168 755 057 33 Net asses -1 12 93 Revenues increased by $141,763,000 with the largest category increases of $158,655,000 im the extraordinary gain on dissolution of the Redevelopment Agency and property taxes of $15,428,000. The increases in revenues were partially offset by a decrease in other taxes of $31,391,000. The major reason for the net decrease in taxes is due to the loss of tax increment as a result of the dissolution of the redevelopment agency. The overall increase in total revenues is also primarily due to the redevelopment agency dissolution which resulted in an extraordinary gain in the current year. Expenses decreased by $57,459,000 with the two largest category changes being a decrease in the interest on long-term debt category of $11,332,000 and a decrease in the Capital contributions category of $31,324,000. The decrease in the interest on long-term debt category is primarily the result of the repayment of the loans between the City and the former Redevelopment Agency resulting in less interest _income in the current year. The decrease in the Capital Contributions costs is primarily the result of the dedication of the Wolff Waters Place Apartments project to the Coachella Valley Housing Coalition ($30,148,000) in the previous fiscal year. There were no contributions in assets from the governmental activities to the business -type activities. Business -type activities This was the seventh full year of operations for the SilverRock Golf fund since the golf course began early operation in 2005. Net assets decreased by $ (212,000) from the effects of an operating loss. Charges for services primarily consisted of green fees which totaled $3,872,000, and was $113,000 more than the previous year, with golf course expenses of $4,085,000, which was $117,000 less than the previous year. During Fiscal Year 2011-12, no additional advances were required for the golf course operations. The total outstanding advance due to the General Fund from the inception of the Golf Course opening is $5,313,000. 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 L.a 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. 10 As of the end of the current fiscal year, the City of La Quinta's governmental funds reported combined ending fund balances of $107.13 million as follows: Governmental Fund Balances Cateoory General Fund Pame All Other Funds Percent, Total Funds Percent Nonspendable $23,883,926 260/6 $2,092,086 14% $25,976,012 24% Restricted 173,426' 0% 26,411,956 173% 26,585,382 25% Committed 19,039,696 21% - 0% 19,039,696 18% Assigned 1,041,172 1% 0% 1,041,172 1% Unassigned 47,737,861 52% (13,248,593) -87% 34,489,268 32% Total $91,876,081 $15,255,449 $107,131,530 Governmental fund balances ended the year totaling $107,132,000, a decrease of $86,239,000 in comparison with the prior years ending balance of $193,371,000. Of this amount $25,976,000 or 24% constitutes nonspendable reserves, which means that these reserves are not available to fund operating expenditures of the organization, $26,585,000 or 25% are restricted fund balances which are the result of external limitations on spending, $19,040,000 or 18% 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 $1,042,000 consist of carryover appropriations which were budgeted for in Fiscal Year 2011712, but were unspent and will be budgeted again in the next budget year. The remainder of fund balance or $34,486,000 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 $47,738,000, while total fund balance reached $91,876,000. 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 256 percent of the total budgeted expenditures. The City of La Quinta's general fund balance decreased by $1,205,000 in Fiscal Year 2011-2012. Key factors for this increase are as follows: Actual expenditures were $2,770,000 less than the final budget. Divisions that were significantly under budget .for the year were Police ($804,000), Fire ($463,000), Street Maintenance ($577,000), Legislative ($162,000) and Capital outlay ($97,000). In addition, actual transfers out were $146,000 less than budgeted. 11 • Actual revenue collections were $112,000 more than the final adjusted budget. Overall, taxes were $867,000 more than budgeted for in Fiscal Year 2011-12, and the actual taxes collected in Fiscal Year 2011-12 ($21,296,300) was $974,000 more the prior year tax actual collections of $20,322,000. Actual transient occupancy tax collections in Fiscal Year 2011-12 were $5,447,000 or $709,000 more than prior year collections. Actual sales tax collections for Fiscal Year 2011-2012 were $7,714,000 or $390,000 more than the $7,324,000 collected in Fiscal Year 2010-11. Interest income decreased $2,769,000 from the prior year due to a combination of historically low interest rates as well as repayment of the Redevelopment Agency loans. Motor vehicle in lieu taxes decreased from $3,515,000 in fiscal year 2010-11 to $3,174,000 in 2011-12. Housing Authority PA No. 2 Fund The Housing Authority fund is used to account for the housing activities of the Housing Authority in Project Area No. 2. The primary purpose of this fund is to promote and to provide quality housing in the City. The fund balance increased by $618,400 to end the year at $8.1 million. Capital Improvement Fund The fund is primarily used to record the expenditure of funds for capital projects. The fund had thirty nine (39) active Capital Improvement Projects budgeted for during Fiscal Year 2011-12. The three most active projects during the year were the Adams Street Bridge Improvements project ($2,603,000), A Street Extension ($1,461,000) and the Coral Mountain Apartments project ($3,909,000). Other major projects budgeted in the future include the Pavement Management and Slurry Seal Program, the Sports Complex Lighting Rehabilitation and Expansion project, and the Americans with Disabilities Act (ADA) Improvements for City owned properties. 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 2007-08 and the final repayment of the original City Hall construction bonds is scheduled in Fiscal Year 2018-19. A $7.17 million advance from the General Fund is outstanding at the end of Fiscal Year 2011-12. Redevelopment Agency Project Area 1 & 2 Debt Service Funds The Redevelopment Agency Project Area 1 & 2 Debt Service Funds were used to accumulate resources, primarily property taxes, to pay debt service. With the dissolution of the Redevelopment Agency per Assembly Bill 1x26 effective February 1, 2012, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City. Therefore, the fund balances of these two funds is zero at June 30, 2012. fE Proprietary funds The City of La Quinta's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The financial activities of the City enterprise fund have already been addressed in the discussion of the City of La Quinta's business -type activities. In addition, the City has three (3) internal service funds to accumulate resources for equipment and vehicle replacement, information technology activities, and for park equipment and facility replacement. General Fund Budaetary Highlights During the year there was a $1,390,000 increase in appropriations and transfers out between the original ($34,672,000) and final amended budget ($36,062,000). Following are the main components of the changes: • The FY 2011-12 budget included $1,041,000 in carryover appropriations from FY 2010-11. • The Fiscal Year included an additional $847,000 in appropriations for Capital Projects funded by the General Fund during the year. The budget increases were possible because of additional anticipated revenues and unassigned reserves and the carryover encumbrances and appropriations were possible from available net changes in fund balances. Capital Asset and Debt Administration Capital assets The City of La Quinta's investment in capital assets for its governmental and business - type activities as of June 30, 2012, amounts to $576,663,000 (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. 13 City of La Quinta Capital Assets (net of depreciation) Governmental Business -type Description Acthities Acti"es Total 2012 2011 2012 2011 2012 2011 Land $ 69,628,685 $ 68.139,567 $36,840,832 $36,840,832 $ 106,469,517 $104,980,399 Building and Improvements 50,257,149 52,688,147 4,894,712 5,129,267 55,151,861 57,817,414 Equipment and furniture 612,134 733,492 539,223 807,049 1,151,357 1,540,541 Vehicles 328,874 423,081 - - 328,874 423,081 Software - - - - - Infrastructure 398,368,091 396,782,262 - - 398,368,091 396,782,262 Constriction in Progress 15,193,546 11,946,973 15193 546 11,946,973 Total $ 534388479 $530713522 $42,274,767 $42,777,148 $ 576663,246 $573,490,670 Major capital asset events during the current fiscal year included the following: Governmental activities • Recording infrastructure improvements, including developer dedications of $1,586,000, to street improvements, street right of way, street sidewalks and curbs and gutters, traffic signals, and street medians; • Completed the Washington Street Stonn Drain Improvements totaling $179,400; • Completed the La Quinta Sports Complex Rehabilitation in the amount of $919,500; • Completed the Traffic Signal and "A" Street Extension ($1,655,900); • Completed Highway 111 Median Island Landscape Improvements ($1,321,600); • Completed Eisenhower Drive and Calle Tampico Signal Interconnect ($460,000); and, • Purchased land for future development (11,815,000). Business -type activities • The Golf Course capital asset balance at June 30, 2012 was $42,275,000 net of accumulated depreciation. The entire decrease of $502,000 was due to annual depreciation of the assets. Additional information on the City of La Quinta's capital assets can be found in Footnote 6 to the financial statements. 14 Long-term debt At the end of the current fiscal year, the City of, La Quints had total bonded debt outstanding of $5,378,000. Of the total amount, $3,895,000 of this debt amount represents bonds secured solely by specified revenue sources (i.e., tax allocation bonds); while, $114,340,000 of the debt represents revenue bonds that will be paid from pledged tax increment -property tax housing funds. In addition, $286,000 in capital equipment leases is outstanding in connection with SilverRock Golf Course and $78,000 in a copier lease is outstanding in the governmental funds. City of La Quinta Outstanding Debt • Governmental Business -type Activities ActiNties Total 2012 - 2011 2012 2011 2012 2011 Debt type: Capital leases $ 40,088 $. 78,252 -$ 169,084 $ 286,097 $ 209,172 $ 364,349 Compensated absences 941,954 966,921 - - 941,954 985,921 Post retirement healthcare liability 459,644 337,311 • - - 469,644 337,311 General liability retrospecthe deposit 41,298 - - - 41,298 Pass through agreement - 1,265,242 - - - 1,255,242 Due to govemment agencies - 1.729,383 -- -, - - 1,729,383 Loans payable - 1.503,433 - - - 1,503,433 Tax allocation bonds - 138.480,000 - - - 138,480,000 Revenue bonds 3 895,000. 114 340,000 3,895,000 114,340,000 $ 5,377 984 $ 258,689,542 $ 169,084 $ 286,097 $ 5,547,068 $ 258,975,639 Total The total outstanding debt decreased by $253,429,000 during Fiscal Year 2011-12. The decreases were almost entirely due to transfers to the Successor Agency of the former Redevelopment Agency of $245,287,000 and repayments of principal in the amount of $7,876,000. Additional information on the City of La Quinta's long-term debt can be found in notes 7,. 8, and 22 of the financial statements. Economic Factors and Next Year's Budgets and Rates These factors were considered in preparing the City of La Quinta's budget for Fiscal Year 2012-2013: The City of La Quinta had a 6.6 versus 7.5 percent last year unemployment rate. This rate is significantly lower than the Riverside County and the State-wide unemployment rate. During the last tenyears, the City of La Quinta has been in a growth phase with assessed values increasing from $3.77 billion in Fiscal Year 2001-2002 to $10.33 billion or over 274 percent. it is important to note however, that from Fiscal Year 2009-10 to Fiscal Year 2011-2012 assessed values decreased by $1.42 billion or 12.1%. M During the current fiscal year, the general fund net loss was $1,205,000 and $1,041,000 of General fund balance has been assigned for carry over appropriations. • AB1x26 dissolved California Redevelopment Agencies as of January 31, 2012. Due to the loss of Tax Increment, the City's ability to fund future capital projects has been severely curtailed. • The Fiscal Year 2012-13 General Fund revenue projections include anticipated increases for the City becoming a Transportation Uniform Mitigation Fee (TUMF) collecting organization ($412,500). • The Fiscal Year 2012-13 budget includes Transient Occupancy Tax increases due to more focused and successful enforcement of vacation rentals in the community ($300,000). • The City of La Quinta adopted a balanced general fund budget for Fiscal Year 2012-13, after applying $2,188,000 in unassigned reserves. Reguests 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, Robbeyn Bird, Finance Director, P.O. Box 1504, La Quinta, CA, 92247 or by telephone at 760-777-7150. IiR CITY OF LA QUINTA OF NET ASSETS Assets: Cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Internal balances Prepaid costs Deposits Due from other governments Inventories Land held for resale Long-term retrospective refund Capital assets not being depredated Capital assets, net of depreciation Total Assets Liabilities: Accounts payable Accrued liabilities Accrued interest Unearned revenue Deposits payable Due to other governments Noncurrent liabilities: Due within one year Due in more than one year Total Liabilities Net Assets: Invested in capital assets, net of related debt Restricted for: . Planning and development projects Public safety Public works Capital projects Debt service Community services Unrestricted Total Net Assets Primary Government Governmental Business -Type Activities Activities Total $ 107,764,618 387,502 2,415,712 7,978,361 72,776 5,313,025 40,596 132,116 4,994,339 8,320,000 257,885 369,726,852 164,661,627 $ 435,601 22,242 128 (5,313,025) 1,865 250,000 67,605 36,840,832 5,433,935 $ 108,200,219 409,744 2,415,712 7,978,361 72,904 42,461 382,116 4,994,339 ,_ 67,605 8,320,000 257,885 406,567,684 170,095,562 672,065,409 37,739,183 709,804,592 4,008,184 167,718 4,175,902 651,568 2,217 653,785 54,043 - 54,043 610,233 4,873 615,106 7,009,804 35,500 7,045,304 3,546,921 - 3,546.921 11,316po 125,348 1,435,388 4,067,944 43,736 4,111,686 21,258,737 379,392 21,638,129 534,388,479 42,105,683 576,494,162 10,767,199 - 10.767,199 245,187 - 245,187 145,823 - 145,823 4,089,156 - 4,089,156 175,960 - 175,960 11,162,057 - 11,162.057 89,832,811 (4,745,892) 85,086,919 $ 650,806,672 $ 37,359,791 $ 688,166,463 See Notes to Financial Statements 17 CITY OF LA QUINTA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governments[ Activities: General government $ 6,183,712 $ 86,869 $ 340,375 $ 937,163 Public safety 20.815,454 1,020,822 5,027,467 9,124 Planning and development 6,378,352 68,470 3,269,650 5,912,750 Community services 5,093,402 247,397 62,680 - Public works 13,288,521 1,080,744 2,589,501 3,131,756 Interest on long-term debt 3,021,496 Total Governmental Activities 54,780,937 2,504,302 11,289,673 9,990,793 Business -Type Activities: Golf Course 4,085,282 3,871,898 - - Total Business -Type Activities 4,085,282 3,871,898 Total Primary Government $ 58,866,219 $ 8,378,200 $ 11,269,673 $ 9,990,793 General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Othertaxes Motor vehicle in lieu - unrestricted Use of money and property Other Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Total General Revenues, Contributions, Extraordinary Items and Transfers Change in Net Assets Net Assets at Beginning of Year Net Assets at End of Year See Notes to Financial Statements 18 Net (Expenses) Revenues and Changes In Net Assets Primary Government Governmental Business -Type Activities Activities Total $ (4,819,305) $ $ (4,819,305) (14,758,041) - (14,758,041) 2,872,518 - 2,872,618 (4,783,325) - (4,783,325) (6,486,520) - (6,486,520) (3,021,496) (3,021,496) (30,996,169) (30,996,169) (213,384) (213,384) (213,384) (213,384) (30,996,169) (213,384) (31,209,653) 21,370,476 21,370,476 5,446,883 5,446,883 7,713,741 - 7,713,741 1,687,440 - 1,687,440 293,592 - 293,592 428,963 - 428,963 3,173,826 - 3,173,826 1,926,255 1,075 1,926,330 268,644 - 268,644 158,654,715 158,654,715 200,963,535 1,075 200,964,610 169,967,366 (212,309) 169,755,057 480,839,306 37,572,100 518,411,406 $ 650,806,672 $ 57,359,791 $ 688,166,463 See Notes to Financial Statements 19 CITY OF LA QUINTA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2012 Special Revenue Funds Capital Projects Funds Housing Authority PA No. Capital General 2 Improvement Civic Center Assets: Pooled cash and investments $ 75,834,824 $ 8,039,919 $ 1,161,731 $ Receivables: Accounts 36,121 37,958 - Taxes 2,415,712 - Long-term retrospective refund 257,885 - Notes and loans - 3,867,710 Accrued interest 66,003 - Prepaid costs 27,481 12,875 Deposits 118,516 13,600 - Due from other governments 4,658,301 - 115,632 Due from other funds 14,174 - - Advances to other funds 15,417,929 - Land held for resale 8,320,000 - Total Assets $ 107,166,946 $ 11,972,062 $ 1,277,363 $ Liabilities and Fund Balances: Liabilities: Accounts payable $ 3,616,971 $ 50 $ 371,080 $ Accrued liabilities 639,534 8,086 - - Deferred revenues 4,743,978 3,867,710 272,713 - Uneamed revenues 24,699 - 231,798 - Deposits payable 6,265,683 26,782 492,433 - Due to other governments - - - - Due to other funds Advances from other funds - - - 7,169,490 Total Liabilities 15,290,965 3,902,628 1,368,024 7,169,490 Fund Balances: Nonspendable: Prepaid costs 27,481 12,875 Land held for resale 8,320,000 - Notes and loans - Advances to other funds 15,417,929 - Deposits 118,516 13,600 Restricted for: Planning and development projects - 8,042,959 Public safety - Community services Public works Capital Projects Debt service 173,426 Committed to: Emergency reserve 17,516,295 Post retirement health benefits 1,523,401 Assigned to: Continuing appropriations 1,041,172 Unassigned 47,737,861 Total Fund Balances 91,876,081 Total Liabilities and Fund Balances $ 107,166,946 See Notes to Financial Statements 20 8,069,434 $ 11,972,062 (90,661) (7,169,490) (90,661) (7,169,490) $ 1,277,363 $ CITY OF LA QUINTA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2012 Debt Service Funds Other Total Redevelopment Redevelopment Governmental Governmental Agency PA No. 1 Agency PA No. 2 Funds Funds Assets: Pooled cash and investments $ $ - $ 18.933,523 $ 103,969,997 Receivables: Accounts 313,423 387,502 Taxes - 2,415,712 Long-term retrospective refund 257,885 Notes and loans 4,110,651 7,978,361 Accrued interest 5,548 71,551 Prepaid costs - 40,356 Deposits - 132,116 Due from other governments 220,406 .4,994,339 Due from other funds - 14,174 Advances to other funds 15,417,929 Land held for resale 8,320,000 Total Assets $ § $ 23,583,551 $ 143,999,922 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ $ 8,312 $ 3,996,413 Accrued liabilities 647,620 Deferred revenues 2,053,922 10,938,323 Unearned revenues 353,736 610,233 Deposits payable 224,906 7,009,804 Due to other governments 3,546,921 3,546,921 Due to other funds 14,174 14,174 Advances from other funds 2,935,414 10,104,904 Total Liabilities 9,137,385 36,868,392 Fund Balances: Nonspendable: Prepaid costs 40.356 Land held for resale - 8,320,000 Notes and loans 2,065,611 2,065,611 Advances to other funds - 15,417,929 Deposits 132,116 Restricted for: Planning and development projects - - 2,724,240 10,767,199 Public safety - - 245,187 245,187 Community services - - 11,162,057 11,162,057 Public works - - 145,823 145,823 Capital Projects - . - 4,089,156 4,089,156 Debt service - 2,534 175,960 Committed to: Emergency reserve - - 17,516,295 Post retirement health benefits 11523,401 Assigned to: Continuing appropriations 1,041,172 Unassigned (5,988,442) 34,489,268 Total Fund Balances 14,446,166 107,131,530 Total Liabilities and Fund Balances § $ $ 23,563,551 § 143,999,922 See Notes to Financial Statements 21 THIS PAGE INTENTIONALLY LEFT BLANK 46 ' CITY OF LA QUINTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 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. Long-term debt and compensated absences that have not been Included in the governmental fund activity: Bonds payable Compensated Absences Governmental funds report all OPEB contributions as expenditures, however in the statement of net assets any excess or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as an asset or liability. Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. Revenues reported as deferred revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. . Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net assets. Net assets of governmental activities $ (3,976,386) (932,241) $ 107,131,530 517,190,532 (4,908,627) (459,644) (54,043) 10,938,323 20,968,601 $ 650,806,672 See Notes to Financial Statements 23 CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2012 Revenues: Taxes Assessments Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures 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 Special Revenue Funds Capital Projects Funds Housing Authority Capital General PA No. 2 improvement Civic Center $ 21,296,301 $ $ $ 482,831 8,318,446 489,153 2,425,180 626,004 - - 575,472 180,348 303,773 - - - - - 101,699 82,490 183,912 2,202 - - 31,786,739 671,703 2,526,879 82,490 4,669,060 204,787 19,619,113 - - 1,207,755 331,314 2,566,654 - 3,765,860 - 170,558 13,119,645 38,164 7,878 35,160 32,046,042 331,314 13,119,645 239,947 (258,303) 340,389 (10,592,766) (157,457) Other Financing Sources (Uses): Transfers in 411,105 Transfers out (1,358,275) Proceeds from sale of capital asset 9,394,375 (47,130) Total Other Financing Sources (Uses) (947,170) 9,347,245 Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) 7,110,645 Net Change in Fund Balances (1,205,473) 7,451,034 (1,245,521) (157,457) Fund Balances, Beginning of Year 93,081,554 618,400 1,154,860 (7,012,033) Fund Balances, End of Year $ 91,876,081 $ 81069,434 See Notes to Financial Statements 24 CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2012 Revenues: Taxes Assessments Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures 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 Debt Service Funds Other Total Redevelopment Redevelopment Governmental Governmental Agency PA No. 1 Agency PA No. 2 Funds Funds $ 16,506,087 $ 9,365,929 $ 6,464,706 $ 53,632,023 - 950,292 950,292 - 482,831 4,642,803 15,875,582 9,107 635,111 (13,122) (15,571) 1,187,391 1,914,618 - 303,773 718,955 903,144 - - 90,213 276,327 16.491,965 9,350,358 14,063,467 74,973,601 8,075 4,881,922 50,404 19,669,517 428,522 241,543 2,105,512 4.314,646 1,520,032 4,086,686 2,426,873 6,192,733 - - 45,786 13,335,989 3,947,652 380,000 2,700,910 7,066,726 3,386,073 252,757 3,019,211 6,701,079 8,986,409 7,769,032 - 16,755,441 16,748,656 8,643,332 11,876,003 83,004,739 Excess (Deficiency) of Revenues Over (Under) Expenditures (256,661) 707,026 2.186,664 (8,031,138) Other Financing Sources (Uses): Transfers in - 2,749,272 12,554,752 Transfers out (488,652) - (10,686,063) (12,580,120) Proceeds from sale of capital asset - 875,275 875,275 Total Other Financing Sources (Uses) (488,652) (7,061,616) 849,907 Extraordinary gainl(loss) on dissolution of redevelopment agency (Note 23) (1,267,226) (84',901,674) (79,058,255) Net Change in Fund Balances (745,343) (560,200) (89,776,626) (86,239,486) Fund Balances, Beginning of Year 745,343 560,200 104,222,692 193,371,016 Fund Balances, End of Year $ $ S 14,446,186 $ 107,131,530 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, 2012 Net change in fund balances - total governmental funds $ (86,239,486) 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 $13,226,234 Depreciation (8,857,852) Contributed capital assets (2,094,245) Gain/(loss) on sale of capital assets 1,230,857 3,504,994 Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Principal repayments 7,025,428 Amortization of bond premiums/discounts (30,013) 6,995,415 Debt issuance costs are expenditures in governmental funds, but these costs are capitalized on the statement of net assets. (118,506) Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 3,828,102 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. 24,265 Governmental funds report all contributions in relation to the annual required contribution (ARC) as expenditures, however in the statement of activities only the ARC is an expense. (1,374,523) 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. 4,833,280 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. 800,855 Extraordinary gains and losses relating to assets and liabilities transferred to the Successor Agency or County are reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported in the governmental funds. Long-term liabilities 244,116,299 Long-term liabilities which have been absorbed by County 1,171,165 Deferred revenue (3,251,160) Unamortized bond issuance costs (4,323,334) 237,712,970 Change in net assets of governmental activities $ 169,967,366 See Notes to Financial Statements 26 CITY OF LA QUINTA BUDGETARY COMPARISON STATEMENT BY DEPARTMENT GENERALFUND YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 93,081,554 $ 93,081,554 $ 93,081,554 $ Resources (Inflows): Taxes 20,041,930 20,428,999 21,296,301 867,302 Licenses and permits 510,265 460,265 482,831 22,566 Intergovernmental 8,625,878 8,942,083 8,318,446 (623,637) Charges for services 527,935 670,575 626,004 (44,571) Use of money and property 1,293,560 718,560 575,472 (143,088) Fines and forfeitures 307,200 287,000 303,773 16,773 Miscellaneous 117,400 166,360 183,912 17,552 Transfers in 135,844 412,508 411,105 (1,403) Amounts Available for Appropriation 124,641,566 125,167,904 125,279,398 111,494 Charges to Appropriation (Outflow): General government Legislative 828,109 829,309 668,113 161,196 City Manager 296,311 341,033 372,657 (31,624) Development Services 1,212,164 1,150,351 1,139,973 10,378 Management Services 1,864,597 1,256,465 1,163,379 93,086 City Clerk 493,771 476,029 385,353 90,676 Fiscal Services 733,728 652,917 723,341 (70,424) Central Services 294,149 246,899 216,244 30,655 Public safety Police 12,712,089 12,874,770 12,071,222 803,548 Building & SafetyAdmin. 201,208 191,242 221,469 (30,227) Building 534,246 542,144 589,309 (47,165) Code Compliance 1,069,895 1',069,895 1,001,496 68,399 Animal Control 459,697 459,697 429,930 29,767 Civic Center Bldg 566,338 607,383 583,394 23,989 Fire 5,028,178' 4,998,647 4,536,097 , 462,550 Emergency Services 185,392 225,392. 186,196 39,196 Planning and development Administration 549,177 896,436 719,678 176,768 Current Planning 509,898 500,890 480,028 20,862 Low/Mod Housing 8,049 8,049 8,049 - Community services Community Services Admin 914,065 1,036,554 952,886 83,668 Senior Center 380,940 414,260 382,642 31,618 Parks & Recreation 208,357 201,357 191,936 9,421 Park Maintenance 1,077,556 1,077,556 1,039,190 38,366 Public works Administration 474,277 478,012 473,137 4,875 Development Services 574,764 588,722 574,030 14,692 Maintenance/Operations - Street 951,033 1,368,299 791,363 576,936 Maintenance/Operations - Lighting 530,565 530,565 459,461 71,104 Construction Management 1,287,018 1,220,182 1,467,869 (247,687) Capital outlay 55,300 267,330 170,558 96,772 Debt service: Principal retirement 38,164 38,164 38,164 Interest and fiscal charges 7,878 7,878 7,878 Transfers out 635,325 1,505,776 1,356,275 147,501 Total Charges to Appropriations 34,672,238 36,062,203 33,403,317 2,658,886 Budgetary Fund Balance, June 30 $ 89,969,328 $ 89,105,701 $ 91,876,081 $ 2,770,380 See Notes to Financial Statements 27 CITY OF LA QUINTA BUDGETARY COMPARISON STATEMENT HOUSING AUTHORITY PA NO. 2 YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 618,400 $ 618,400 $ 618,400 $ Resources (Inflows): Intergovernmental 498,200 498,200 489,153 (9,047) Use of money and property 164,390 164,390 180,348 15,958 Miscellaneous 3,700 3,700 2,202 (1,498) Transfers in 7,110,645 (7,110,645) Amounts Available for Appropriation 1,284,690 8,396,336 1,290,103 (7,105,232) Charges to Appropriation (Outflow): Planning and development 385,222 385,232 331,314 53,918 Debt service: Principal retirement 42,832 42,832 - 42,832 Interest and fiscal charges 196,925 196,925 196,925 Transfers out - 7,033,408 7,033.408 Extraordinary gainl(loss) on dissolution of redevelopment agency - (7,110,645) 7,110.645 Total Charges to Appropriations 624,979 7,658,397 (6,779,331) 14,437,728 Budgetary Fund Balance, June 30 $ 659,711 $ 736,938 S 8,069,434 _L 7,332,496 See Notes to Financial Statements 28 CITY OF LA QUINTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012 Business -Type Governmental Activities - Activities - Enterprise Funds Internet Golf Course Service Funds Assets: Current: Cash and investments $ 435,601 $ - 3,794,621 Receivables: Accounts 22,242 - Accrued Interest 128 1,225 Prepaid costs 1,865 240 Deposits 250,000 - Inventories 67,605 Total Current Assets 777,441 3,796,086 Noncurrent: Capital assets - net of accumulated depreciation 42,274,767 17.197,947 Total Noncurrent Assets 42,274,767 17,197,947 Total Assets $ 43,052,208 $ 20,994,033 Liabilities and Net Assets: Liabilities: Current: Accounts payable $, 167,718 $ 11,771 Accrued liabilitie's 2,217 3,948 Unearned revenues 4,873 - Deposits payable 35,500 Accrued compensated absences - 4,078 Bonds, notes, and capital leases 125,348 Total Current Liabilities 335,656 19,797 Noncurrent: Advances from other funds 5,313,025 - Accrued compensated absences 5,635 Bonds, notes, and capital leases 43,736 Total Noncurrent Liabilities 5,356,761 5,635 Total Liabilities 5,692,417 25,432 Net Assets: Invested in capital assets, net of related debt 42,105,683 17,197,947 Unrestricted (4,745,892) 3,770,654 Total Net Assets 37,359,791 20,968,601 Total Liabilities and Net Assets $ 43,052,208 $ 20,994,033 See Notes to Financial Statements 29 THIS PAGE INTENTIONALLY LEFT BLANK 30 CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Operating Revenues: Sales and service charges Miscellaneous 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 Capital contributions Transfers in Changes in Net Assets Net Assets: Beginning of Year End of Fiscal Year Business -Type Activities - Enterprise Funds Golf Course Governmental Activities - Internal Service Funds $ 3,871,898 $ 1,086,110 29,553 3,871,898 1,115,663 62,751 3,416,655 502,381 68,813 4,050,600 (178,702) 113,729 91,233 74,179 93,174 105,841 804,420 8,934 1,291,510 (175,847) 1,075 10,737 (34,682) - 3,434 (33,607) (212,309) 14,171 (161,676) 937.163 25,368 (212.309) 800,855 37,572,100 20,167,746 $ 37,359,791 $ 20,968,601 See Notes to Financial Statements 31 CITY OF LA OUINTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Cash Flows from Operating Activities: Cash received from customers and users Cash received fromt(paid to) interfund service provided Cash paid to suppliers for goods and services Cash paid to employees for services Net Cash Provided (Used) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers in Advance from other funds Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Proceeds from sales of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Business -Type Activities - Enterprise Funds Golf Course Governmental Activities - Internal Service Funds $ 3,884,814 $ 1,115,423 (6,263) - (3,503,102) (441,476) (62,696) (113,337) 312,753 560,610 25,368 (94,302) (94,302) 25,368 (117,013) (34,682) (37,223) 3,434 (151,695) (33,789) 180 11,827 1,180 11,827 67,936 564,016 367,665 3,230,605 $ 435,601 $ 3,784,621 See Notes to Financial Statements 32 CITY OF LA QUINTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2012 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating Income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in Inventories (Increase) decrease In prepaid expense Increase (decrease) in accounts payable Increase (decrease) in accrued Ilabllflles Increase (decrease) in deposits payable Increase (decrease) in unearned revenue Increase (decrease) in compensated absences Total Adjustments Net Cash Provided (Used) by Operating Activities Non -Cash Investing, Capital, and Financing Activities: Capital assets contributed by other funds Business -Type Governmental Activities - Activities - Enterprise Funds Internal Golf Course Service Funds $ (178,702) $ (175,847) 502,381 804,420 9,275 - 11,862 - - (240) 1,741 (68,115) 55 94 (37,500) 3,641 - - 298 491,455 736,457 $ 312,753 $ 560,610 937,163 See Notes to Financial Statements 33 CITY OF LA QUINTA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Due from other governments Deferred charges Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Accounts payable Accrued interest Deposits payable Long -tens liabilities: Due in one year Due in more than one year Total Liabllltles Net Assets: Held in trust for pension Held in trust for other purposes Total Net Assets Pension Trust Private -Purpose Fund Trust Fund Successor Agency Supplemental Agency of the Funds Pension Plan former RDA $ 550,232 $ 187.924 $ 23,193,145 - 21,000 9,041 - - - 3.251,160 164 63 9,300 3.546,921 4,238,688 57,077,193 $ 559,437 $ 187,987 $ 91,337,407 $ $ $ 251,039 3,778,175 559,437 - 5,876,783 - 238,242,606 E 559,437 $ $ 248,148,603 $ $ 187,987 $ (156,811,196) $ $ 187,987 $ (156,811,196) See Notes to Financial Statements 34 CITY OF LA QUINTA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2012 Additions: Contributions: Employers Taxes Interest and change in fair value of Investments Total Additions Deductions: Administrative expenses Interest expense Contributions to other governments Total Deductions Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Changes in Net Assets Net Assets - Beginning of the Year Net Assets - End of the Year Pension Trust Private -Purpose Fund Trust Fund Successor Supplemental Agency of the Pension Plan former RDA $ 200,054 $ - - 13,231,246 766 53,827 200,820 13,285,073 12,833 959,782 - 10,804,220 - 848,717 12,833 12,612,719 (157,483,550) 187,987 (156,811,196) $ 187,987 $ (156,811,196) See Notes to Financial Statements 35 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 1: Summary of Significant Accounting Policies a. Reporting Entity The City of La Quints (City) was incorporated May 1, 1982, under the general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council — Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization If the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget; levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, . part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City La Quints Redevelopment Agency The La Quints Redevelopment Agency (Agency) has established two redevelopment project areas pursuant to the State of Califomia 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 Quints 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. The redevelopment agency was dissolved as of January 31, 2012 through the Supreme Court decision on Assembly Bill 1X 26. See Note 21'for more information on the dissolution." 37 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Summary of Significant Accounting Policies (Continued) City of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Financing Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991; between the City and the Agency. The purpose of the Financing Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although the Financing 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 Financing Authority. Separate financial statements of the Financing Authority are not prepared. City of La Quinta Housing Authority The La Quinta Housing Authority (Housing Authority) was established pursuant to California Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009. The purpose of the Housing Authority is to provide safe and sanitary housing opportunities for La Quinta residents. Although the Housing 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 Housing Authority. Separate financial statements of the Housing Authority are not prepared. b. Government -Wide and Fund Financial Statements The basic financial statements of the City are composed of the following • Government -wide financial statements • Fund financial statements • Notes to the financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989, that does not conflict with or contradict GASB pronouncements. Government -wide Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments 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 38 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Summary of Significant Accounting Policies (Continued) statement of activities to present the net cost of each program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Amounts paid to acquire capital assets are capitalized as assets in the govemment-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the govemment-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditures. 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 govemment 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 Govemment-wide Financial Statements While separate govemment-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business -type activities incorporate data from the government's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the govemmentwide financial statements. 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. 4 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 20f 2 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 nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specked, 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. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. 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. Noncurrent portions of long -tens 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 rinancing 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. 40 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 govemment-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 pension and private -purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities. 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. 41 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Summary of Significant Accounting Policies (Continued) Housing Authority Project Area 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. Caoital Improvement Fund — This capital projects fund is used to account for the planning, design and construction of various capital projects throughout the City and the 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 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 Project 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. Fiduciary Funds: Agency Fund — This fund accounts for assets held by the City as an agency for assessment district bondholders. Pension Trust Fund — This fund accounts for the activities of the Supplemental Pension Savings Plan, which accumulates resources for pension benefit payments to qualified government employees. Private -Purpose Trust Fund — This fund accounts for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. 42 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 shortderm, 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 Quints. 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 inffirst out (FIFO) method. The City uses the consumption method of accounting for inventories. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. The City utilizes the consumption method, in which prepaid items are accounted for in the period that the benefit was received. 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. 43 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 govemment-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes capital asset useful lives: Buildings and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years Software 5-10 years Compensated Absences Sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 and 40 days, respectively. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage increases by 25% for each five-year period until the employee is entitled to 75% of the value of his unused sick leave. This will occur upon the completion of ten years of continuous employment. Fund Balance In the fund financial statements, governmental funds report the following fund balance classification: Nonsoendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by resolution. Assigned includes amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose. Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. 44 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Summary of Significant Accounting Policies (Continued) The City Council adopts and amends committed fund balance amounts through a resolution. The City Council authorizes assigned amounts for speck 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 following order: committed, assigned and then unassigned. If. 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. Budgets were not adopted for the Development Agreement funds. 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 an unassigned 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). E.R CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 2: Note 3: Stewardship, Compliance and Accountability (Continued) b. At June 30, 2012, the following funds had deficit fund balances: Major Capital Projects Funds Capital Improvement $ 90,661 Civic Center 7,169,490 Nonmajor Special Revenue Funds: Federal Assistance 8,882 Nonmajor Capital Projects Funds: Parks and Recreation 1,183,816 Library Development 1,860,330 Street Facility 2,021,772 Fire Facility 913,642 c. Excess of expenditures over appropriations areas follows: Expenditures for the year ended June 30, 2012, exceeded the appropriations of the General Fund as follows: Budget Actual Variance General Fund: General Government City Manager $ 341,033 $ 372,657 Fiscal Services 652,917 723,341 Public Safety Building & safety admin 191,242 221,469 Building 542,144 589,309 Public Works Construction management 1,220,182 1,467,869 III. DETAILED NOTES ON ALL FUNDS Cash and Investments $ 31,624 70,424 30,227 47,165 247,687 Cash and investments as of June 30, 2012, are classified in the accompanying financial statements as follows: Statement of Net Assets Cash and investments $ 108,200.219 Statement of Fiduciary Net Assets: Cash and investments 23,931,301 Cash with fiscal agent 57,077,193 Total cash and investments $ 189,208,713 Em CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) Cash and investments as of June 30, 2012, consist of the following: Cash on hand $ 1,905 Deposits with financial institutions 453,410 Investments 188,753,398 Total cash and investments $ 189,208,713 The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all Calffomia public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an *Agent of Depository' has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. A provision of the Dodd -Frank Wall Street Reform and Consumer Protection Act provides temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts at all FDIC -insured institutions. This provision was effective from December 31, 2010 and will remain effective until December 31, 2012. Noninterest-bearing transaction accounts is defined as an account (1) with respect to which interest is neither accrued nor paid; (2) on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and (3) on which the FDIC -insured depository institutions does not reserve the right to require advance notice of an intended withdrawal. As of June 30, 2012. the City maintains cash deposits that are temporarily covered by this provision. Cash Deposits At June 30, 2012, the carrying amount of the City's deposits was $453,410, and the bank balance was $1,181,777. The $728,367 difference represents outstanding checks and other reconciling items. 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 Govemment Code or the City's investment policy. 47 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: . Cash and Investments (Continued) `Maximum 'Maximum Investment Investment Types Authorized by State Law `Maximum Maturity Percentage of Portfolio . In One Issuer U.S. Treasury Obligations 10 years None $30 million U.S. Agency Securities 3 years None $30 million Local Agency Bonds 10 years None $30 million California Loral Agency Obligations 10 years 30% $30 million Commercial Paper 90 days 15% $5 million Certificates of Deposit 3 years 60% $260,000 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, 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 tens and long term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type Total Remaining Maturity (in Months) 6 Months 6 Months to 1 or Less Year 1 to 3 Years U.S. Treasury notes $ 29,986,384 $ 29,986,384 $ - $ U.S. Treasury bills 1,999,744 1.999,744 - Certificates of Deposit 724,000 484,000 - 240,000 Federal agency securities: Federal Home Loan Bank 8,998,321 8,998,321 - - Commercial paper 11,997,202 11,997,202 - Rabobank 39,959,692 39,959,692 - State investment pool 38,010,862 38,010,862 - Held by bond trustee: Money market funds 57,077,193 57,077,193 Total $ 188,753,398 $ 188,513,398 $ - $ 240,000 48 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) Disclosures Relatina 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 PA or higher from Standard and Poor's (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, 2012, the City had investments with a variety of issuers, all of which were "investment grade" and were legal under state and municipal law. The City's investments in money market mutual funds were all rated 'AAA", federal agency securities were all rated AA+, and commercial paper were rated A-1 by S&P and Moody's. As of June 30, 2012, 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 and Commercial Paper. As of June 30, 2012, the City had no individual investments that represent 5% or more of total investments. 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. The City has money market accounts (MMA's) with Rabobank, N.A. These Accounts are the financial obligations of the bank, and are collateralized with government securities at 110% of the balance on deposit. As of June 30, 2012, the City's investments of $39,959,692 were collateralized in accordance with the California Government Code. Investment in 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 Califomia. 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 LAW 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. 49 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for Extemal 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 eaming investment contracts, extemal investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. Note 4: Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within ninety days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 Note 5: Notes Receivable In September 1994, the 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. On February 1, 2012, this receivable was transferred to the Housing Authority Project Area No. 1 which took over the housing function of the Agency upon dissolution. The balance at June 30, 2012, including matured, unpaid interest of $2,045,041 is $4,080,429. In February 2011, the Agency entered into Disposition and Development Agreement with Coral Mountain Partners L.P. ("Coral Mountain) to fund up to $29,000,000 for the construction of a low and moderate income apartment complex with an estimated completion date of the apartment complex of March 2015. The Agency's $29,000,000 loan is evidenced by a Promissory Note executed by Coral Mountain ("Note"). Interest on the outstanding note amount will bear simple interest of 1%. Principal and interest will be repaid on or before May 1°' of each year from annual residual receipts as defined in the Note once the project is completed and may be repaid early if the property is refinanced, or if the property is transferred to another entity. On February 1, 2012 this receivable was transferred to the Housing Authority Project Area No. 2 which took over the housing function of the Agency upon dissolution. As of June 30, 2012, the outstanding principal portion on the Note is $3,852,309 and the outstanding interest portion is $15,401. Other notes receivable as of February 1, 2012 were transferred to the Housing Authority Project Area No. 1 which took over the housing function of the Agency upon dissolution that totaled $30,222 at June 30, 2012. 50 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2012, is as follows: Beginning Ending Balance at Balance at Jury 1, 2011 Additions Deletions Transfers June 30, 2012 Governmental Activities: Capital assets, not being depreciated: Land $ 68.139,567 $ - $ 175,000 $ 1.664,118 $ 69,628,685 Right of way 284,904,621 - - 284,904,621 Construction -in -progress 11,946,973 13,119,645 1,516,216 (8,356,856) 15,193.546 Total Capital Assets, - Not Being Depreciated 364,991,161 13.119,645 1.691,216 (6,692,738) 369,726,852 Capital assets, being depreciated: Buildings and improvements 69,282,702 - 1,151,129 1,016,140 69,147,713 Equipment andfumiture 2,260,348 37,225 18,981 20,000 2.298.592 Vehicles 1,656,948 27,810 86,220 1,598,538 Infrastructure 189,478,798 2,135,799 127,007 5.656,598 197,144,188 Total Capital Assets, Being Depreciated 262,678,796 2,200,834 1,383,337 6,692,738 270,189,031 Less accumulated depreciation: Buildings and improvements 16,594,555 2,350.684 54,675 - 18,890,564 Equipment and furniture 1,526,856 178,683 18,981 - 1,686,458 - Vehicles 1.233,867 122.017 86,220 - 1,269,664 Infrastructure 77,601,157 6,206.568 127,007 - 83,680,718 Total Accumulated Depreciation 96,956,435 8,857,852 286.883 105,527,404 Total Capital Assets, Being Depreciated, Net 165,722,361 (6,657,018) 1,096,454 6,692,736 164,661,627 Governmental Activities Capital Assets, Net $ 530,713,522 $ 6,462,627 $ 2,787,670 $ - $ 534,388,479 Depreciation expense was charged to the following functions in the Statement of Activities: General government $ 128,315 Public safety 1.178,150 Community services 500,509 Public works 7.050,878 Total governmental activities $ 8.857,852 51 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Capital Assets (Continued) Capital asset activity for business -type activities for the year ended June 30, 2012, is as follows: Beginning Ending Balance at Balanos at July 1, 2011 Additions Deletions June 30, 2012 Business -Type Activities: . Capital assets, not being depredated: Land $ 36,840,832 $ - $ - $ 36,840.832 Total Capital Assets, Not Being Depreciated 36,840,832 36,840,832 Capital assets, being depredated: Buildings and improvements 6,636,465 - - 6,636,465 Equipment and furniture 2,073,478 - - 2,073,478 Vehicles 20,348 - - 20,348 Software 20,255 - 20,255 Total Capital Assets, Being Depredated 8.750,546 - 8,750,546 Less accumulated depredation: Buildings and improvements 1,507,198 234,555 - 1,741,753 Equipment and furniture 1,266,430 267,826 - 1,534,256 Vehicles 20,347 - - 20,347 software 20,255 - - 20,255 Total Accumulated Depredation 2,814,230 502,381 3,316,611 Total Capital Assets, Being Depredated, Net 5,936,316 (502,381) - 5.433,935 Governmental Activities Capital Assets, Net $ 42,777,148 $ (502,381) $ $ 42,274,767 Depreciation expense was charged to the following function in the Statement of Activities: Golf Course $ 502,381 6i'a CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Changes in Long -Term Liabilities — Governmental Activities a. Changes in Long -Terre Debt The following is a summary of changes in governmental long -tens liabilities of the City for the fiscal year ended June 30, 2012: City. Compensated, absences payable $ Copier Lease Payable OPEB Liability General liability retrospective deposit payable Redevelopment Agency. RDA Project Area No. 1: Tax allocation bonds Pass -through agreements: Coachella Valley Unified School District RDA Project Area No. 2: Tax allocation bonds Due to County of Riverside Provident Loan US Department of Agriculture Transfers to Balance at Successor Balance at Due within July 1, 2011 Additions Deletions Agency' June 30, 2012 one year 965,921 $ 776,985 $ 799,952 - $ - $ 941,954 $ 799,952 78,252 - 38,164 - 40,088 40,088 337,311 122,333 - - 459,644 - - 41,298 - - 41,298 - 126,925,000 - 3,540,000 (123,385.000) - - 1,255,242 - 1,255,242 - - - 11,555,000 - - 130,0D0 (11,425,000) - 1,000,000 - 1,000,0D0 - - - 1,603,433 - 17,148 (1,486,285) - - 729,383 .- 7,337 (722,046) - - Financing Authority: Revenue bonds 114,340,000 2,250,000 (108,195,000) 3,895,000 470,000 Unamortized premiums/discounts (1,127.045) 33,293 3,280 1,097,032 Total $ 257.662,497 $ 972,909 $ 9.041.123 $ (244,116,299) $ 5,377,984 $1,310,040 As a result of the dissolution of the redevelopment agency, indebtedness of the former redevelopment agency was transferred to the Successor Agency. See Note 22 for disclosures for indebtedness. As a result of the dissoulfion of the redevelopment agency, amounts due to the County and for pass -through agreements were transferred to the County and therefore the obligation has been included above as a deletion in the amount of $1,171.166. b. A description of individual Issues of debt (excluding defeased bonds) outstanding as of.June 30, 2012, is as follows: 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. 53 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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, 2012, are as follows: Year Ending June 30, Total 2013 $ 44,358 Total Payments 44,358 Less amount representing sales tax (3,034) Less amount representing interest (1,236) Outstanding Principal $ 40,088 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, 2012, is $3,895,000. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 470,000 $ 203,130 2014 495,000 176,351 2015 525,000 148,046 2016 555,000 118,076 2017 585,000 86,441 2018-2022 1,265,000 71,179 Totals $ 3,895,000 $ 803,223 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) Pass -through Agreements Payable - Coachella Valley Unified School District An agreement was entered into in 1991 between the former redevelopment agency, the City of La Quints 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 former redevelopment 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. Due to the dissolution of the former redevelopment agency of the City of La Quints this debt has been transferred to the County of Riverside due to no future Tax increment payments. There is no outstanding balance at June 30, 2012 Due to County of Riverside - Project Area No. 2 Based on an agreement dated July 5, 1989, between the former redevelopment 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 Quints population. Due to the dissolution of the former redevelopment agency of the City of La Quints this debt has been transferred to the County of Riverside due to no future Tax increment payments. There is no outstanding balance at June 30, 2012 CJPIA Retrospective Deposit Liability Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2011 annual retrospective adjustment is included in these balances Optional Payment Plans When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. The City has chosen not to voluntarily accelerate payment at this time. After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms. 55 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Changes in Long -Terre Liabilities — Governmental Activities (Continued) Retrospective Balances will Change Annually Retrospective balances will change with each annual computation during the payment deferral period. Member balances may increase or decrease as a result of the most recent year's claim development. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computations. Conversely, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member. More information on the CJPIA retrospective balances can be found on the CJPIA website at CJPIA.org. At June 30, 2012 the retrospective amount due was $41,298. Note 8: Changes in Long -Term Liabilities — Business -type Activities Changes in business -type long-term liabilities for the year ended June 30, 2012, were as follows: Balance at Balance at Due within July 1, 2011 Additions Deletions June 30, 2012 one year Goff Course: Capital leases payable $ 286,097 $ - $ 117,013 $ 169,084 $ 125,348 The City of La Quints 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: Wells Fargo Financial Leasing, Inc. The present value of the minimum lease payments on golf carts was capitalized using an incremental borrowing rate of 6.90% at the inception of the lease. The lease is payable in 33 monthly installments of $11,166 which began February 1, 2011. $ 169,084 Total capital leases payable as of June 30, 2012 $ 169,084 56 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 8: Note 9: Note 10: Changes in Long -Tenn Liabilities — Business -type Activities (Continued) The following schedule summarizes the debt to maturity payments for capital leases: Year Ending June 30, Total 2013 $ 133,100 2014 44,366 Total Payments 177,466 Less Amount Representing Interest (8,382) Outstanding Principal $ 169,084 Debt Without Governmental Commitment The City of La Quints 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, 2012. Amount Outstanding at Proceeds Maturity Date Interest Rate June 30, 2012 Assessment District No. 97-1 $ 705,262 Assessment District No. 2001-1 2,285,000 Interfund Receivables and Payables 9/212018 4.10%-5.20% $ 275,000 9/2/2015 5.00%-6.60% 465,000 The composition of current interfund receivable and payable as of June 30, 2012, are as follows: Due to Other Funds Non -Major Governmental Total Due From Other Funds General Fund $ 14,174 $ 14,174 Total: $ 14,174 $ 14,174 57 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 10: Interfund Receivables and Payables (Continued) The interfund balances were made to cover negative cash balances and other temporary loans at June 30, 2012. The composition of non -current interfund receivable and payable as of June 30, 2012, 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 $ 7,169,490 $ - $ - $ 5,313,025 $ 2,935,414 $ 15,417,929 a) As of June 30, 2012, the General Fund has advanced to the Golf Course fund $5,313,025. The advances accrue interest at the City's investment pool rate and are to be repaid by the golf course out of future profits. b) 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, 2012, the Civic Center expansion was completed and the amount of the advance was $7,169,490 outstanding. The advance accrues interest that would have been earned by the Local Agency Investment Fund. c) 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, 2012, the amount of the outstanding advance was $2,021,772. The advance accrues interest at the earnings rate of the City's investment pool fund. d) In February 2003, the Redevelopment Agency Capital Projects PA No. 2 Fund advanced $1,350,131 to the Fire Facility Fund to provide funding for development of the City's north Fire Station. On March 1, 2012 the outstanding advance of $925,192 was transferred from the Redevelopment Agency to the General Fund with the Redevelopment Agency receiving $925,192 in cash for the outstanding balance. The advance accrues interest equal to the earnings rate of the City's Investment Pool Funds. As of June 30, 2012, the remaining balance of the advance is $ 913,642. Note 11: Interfund Transfers Transfers Out Capital RDA PA#1 Non -Major General Fund Improvement Debt Service Governmental Total Transfers In General Fund $ - $ - $ - $ 411,105 $ 411,105 Capital Improvement 1,356.275 - 488,662 7,549,448 9,394,375 Non -Major Governmental 2,000 47,130 - 2,700,142 2,749,272 Internal Service - - 25,368 25,368 Total: $ 1,358,275 $ 47,130 $ 488,652 $ 10,686,063 $ 12,580,120 58 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 11: Interfund Transfers (Continued) a) $411,105 was transferred to the General Fund from various non -major funds to fund various program expenses within the City related to operations and grant funded activities. b) $1,356,275 was transferred from the General Fund to the Capital Improvement Fund to transfer various capital projects and sales tax rebate agreements. c) $488,652 was transferred to the Capital Improvement Fund from the RDA Debt Service — PA No. 1 Fund to fund various capital projects within the project area of the former redevelopment agency. d) $7,549,448 was transferred to Capital Improvement Fund from various non -major funds to fund various capital projects within the City. e) A combined $2,749,272 was transferred to various non -major funds from the General Fund, Capital Improvement, and other non -major funds to support various administrative operations, capital project, and debt service expenses within the City. f) $25,368 was transferred to the internal service funds to support City-wide equipment replacement expenses. . Note 12: Long-term Receivable Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013 for the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2011 annual retrospective adjustment is included in these balances. The City at June 30, 2012 had a retrospective refund due to the City in the amount of $257,885. During the payment deferral period, members with a retrospective refund balance will receive a portion of the balance as a credit against other charges on the annual contribution invoice. For the 2011-12 coverage year, the refund amount will be 25%. The percentage to be refunded in future years will be set on an annual basis by the Executive Committee of CJPIA. Once the payment deferral period has concluded in each program, subsequent retrospective refund adjustments will be applied in full (100%) as a credit on the annual contribution Invoice. More information on the CJPIA retrospective balances can be found on the CJPIA website at CJPIA.org. 59 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 IV. OTHER INFORMATION Note 13: Defined Benefit Pension Plan Plan Description The City of La Quinta contributes to the Caldomia Public Employees Retirement System (PERS), a cost sharing muttiple-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. 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 10.263% of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. The contribution requirement of plan member and the City are established and may be amended by CalPERS. Contributions For the year ended June 30, 2012, the City's contribution of $816,449 was equal to the City's required and actual contribution. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses) and (b) projected annual salary increases that range from 3.55% to 14.45% depending on age, service, and type of employment. Both (a) and (b) include inflation component of 3%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three- year period. PERS unfunded actuarial accrued liability (or surplus) is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2009 was 19 years. Three -Year Trend Information for PERS Required Percentage Fiscal Year Contribution Contributed 6/3012010 $ 953,728 100% 6/30/2011 714,598 100% 6/30/2012 816,449 100% ;:tr1 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 14: Defined Contribution Plans Plan Description The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide retirement excess benefits to general employees of the City. At June 30, 2012, there was one plan member. There are no required contributions by plan members. At June 30, 2012, the City has contributed $200,054 to fund the Supplemental Pension Savings Plan. Note 16: Post -Employment Health Benefits Plan Description The City of La Quints provides other postemployment benefits (OPEB) through a single - employer defined benefit healthcare plan by contributing on behalf of all eligible retirees' $108/month for calendar 2011 and $112/month for calendar 2012, 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 Policy The contribution requirements of plan members and the City are established and may be amended by the City, City Council and/or the employee association. Currently, contributions are not required from plan members. There was no contribution made during the 2011-2012 fiscal year to cover current plan premiums. As a result, the City calculated and recorded a net OPEB obligation, representing the difference between the annual required contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC) $ 138,992 Interest on net OPEB obligation 3,373 Adjustment to ARC (13,872) Annual OPEB cost 128,493 Contributions made (6,160) (Decrease) increase in net OPEB obligation 122,333 Net OPEB obligation (asset) - beginning of year 337,311 Net OPEB obligation (asset) - end of year $ 459,644 61. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 15: Post -Employment Health Benefits (Continued) The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2011-2012 and the two preceding years were as follows: Actual Fiscal Annual Contribution Year OPEB (Net of End Cost Adjustments) 6/30/2010 $ 116,821 $ 3,513 6/30/2011 119,105 4,260 6/30/2012 128,493 6,160 Funded Status and Funding Progress Percentage of Annual Net OPEB OPEB Cost Obligation Contributed (Asset) 3.01 % $ 222,466 3.58% 337,311 4.79% 449,145 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 information available. 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% Actual 7/1/2011 428,328 428,328 0.0% 7,459,445 5.7% 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 required contribution was determined as part of the July 1, 2011, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included a 5.0% investment rate of return, projected salary increases ranging from 5.0% to 8.0%, a 4.0% per year cost -of -living adjustments. Both include an inflation component 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, 2012, was twenty-seven years. The number of active participants is 12. CA CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Self Insurance The City is a member of the California Joint Powers Insurance Authority (Insurance Authority). The Insurance Authority is composed of 121 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 at 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. General Liability In the liability program claims are pooled separately between police and non -police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of,the pool's total incurred costs within the second layer. (4) Inured costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. Costs of covered claims from $10 million to $15 million are paid, under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. On a cumulative basis for all 2011-2012 reinsurance contracts the annual aggregate deductible is $5.5 million. (6) Costs of covered claims from $15 million up to $50 million are covered through excess insurance policies. The overall coverage limit for each member including all layers of coverage is $50 million per occurrence. Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub -limit of $35 million per occurrence. This $35 million subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR, (b) $10 million in reinsurance and (c) $20 million in excess insurance. The excess insurance layer has a $20 million annual aggregate. Workers Compensation In the workers' compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on 63 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Self Insurance (Continued) the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $4 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $4 million to $10 million are pooled among members. During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2011-2012. Additional Coverage 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: Commitments and Contingencies The following material construction commitments existed at June 30, 2012: Expenditures to date as of Remaining Project Name Contract Amount June 30, 2012 Commitments Washington St Apartments Rehabilitation $ 18,906,474 $ 385,560 $ 18,520,914 Adams Street Bridge Improvements 13,088,121 4,536,166 8,551,955 Note 18: Fund Balances The City has the following committed fund balance shown on the balance sheet: Committed to emergency reserve - the City established the amount of 35% of the Fiscal Year 2011-2012 budget plus $4,000,000 which totals $17,516,295 in the General Fund for the year ended June 30, 2012. The funds would be drawn upon pursuant to the Municipal Code Section 2.20 which defines an emergency or disaster to mean the actual or threatened existence of conditions of disaster or of extreme peril to the safety of CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED)' JUNE 30, 2012 Note 18: Fund Balances (Continued) persons and property within this city caused by such conditions as air pollution, fire, flood, stone, epidemic, not, earthquake or other conditions, including conditions resulting from war or imminent threat of war but other than conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, regular personnel, equipment and facilities of the city and which may require the combined forces of other political jurisdictions to combat. Committed to post retirement health benefits - the City has committed a portion of fund balance for the payment in future years of their Post retirement health benefits. For the year ended June 30, 2012 the City has committed $1,523,401 for this purpose. These committed amounts have been approved by Council based on certain percentages and will be used only in the event of Council approval. Additionally, the City has included the following amounts_ in the unassigned fund balance amount shown on the balance sheet: Cash Flow Reserve - the City established the amount of 8.25% of the Fiscal Year 2011-2012 budget which totals $3,185,984 in the General Fund for the year ended June 30, 2012. Future Operational Deficit - For the future operationat deficit, the City has set aside $3,184,702 for the year ended June 30, 2012. Note 19:. 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 tens 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, 2012, the Golf Course had an operating loss before contributions and transfers of $212,309. Note 20: 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 teens of the agreement, the City shall make quarterly payments of 400/0 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. On January 17, 2012, the City amended the agreement to extend the termination date by an additional one year period, subject to the $1,000,000 maximum reimbursement. In addition, the hotel may not assign or transfer this agreement 65 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 20: Reimbursement Agreements (Continued) without the City's prior written consent, which it may withhold at its discretion. The hotel opened in November 2006. As of June 30, 2012, the City made $967,744 in reimbursement payments to the owner leaving an outstanding balance of $32,256. 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, 2012, the City made $1,709,264 in reimbursement payments to the owner leaving an outstanding balance of $2,290,736. Note 21: California Redevelopment Agency Dissolution On July 18, 2011, the California Redevelopment Association ("CRA") and the League of California Cities ("League") filed a petition for writ of mandate with the California Supreme Court, requesting the Court to declare unconstitutional two bills that were passed as part of the 2011-12 State Budget, AB 1X 26 and 27 (California Redevelopment Association v. Matosantos). AB 1X 26 dissolves redevelopment agencies effective October 1, 2011. AB 1X 27 gave redevelopment agencies an option to'avoid dissolution if it commits to making defined payments for the benefit of the State, school districts and certain special districts. In 2011-12, these payments amounted to a state-wide total of $1.7 billion. In 2012-13 and subsequent years, the payments totaled $400 million, annually.. Each city or county's share of these payments was determined based on its proportionate share of state-wide tax increment. On August 17, 2011 the Supreme Court issued a stay of the implementation of AB 1X 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB 1X 27 ordinance. However, because of the effect of the stay order, the authority for the Redevelopment Agency to engage in most activities was suspended. The Supreme Court heard oral arguments on November 10, 2011 and on December 29, 2011 announced its decision in California Redevelopment Association v. Matosantos. The court upheld AB 1X 26 which dissolves redevelopment agencies, but invalidated in its entirety AB 1X 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB X1 26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The full text of AB 1X 26 may be obtained from the California legislative information website maintained by the Legislative Counsel of the State of California at: http://www.leainfo.ca.aov/bilinfo.html. As of January 31, 2012, the Redevelopment Agency has been dissolved and the City of La Quints has elected to become the Successor Agency. The Successor Agency will be responsible for winding down the remaining activities of the dissolved Redevelopment Agency. Note 22: Subsequent Event Orders from California State Controller On April 20, 2012, pursuant to Health and Safety Code Section 34167.5, the California State Controller issued an order to cities, counties, and agencies, directly or indirectly receiving ::I CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 22: Subsequent Event (Continued) assets from a redevelopment agency after January 1, 2011, to reverse the transfer and return assets to successor agency. The California State Controller will specifically review and audit cities, counties, and public agencies to ensure that all applicable asset transfers have been reversed. Any reversals of transfers are not reflected in the Agency's financial statements as of January 31, 2012. Upon the Controller's review, any assets, it applicable, would be transferred to the Successor Agency in accordance with the order. On October 2, 2012, the City adopted resolution no. 2012-053 to transfer ownership of ten public/government use, non -housing properties to the successor agency, which were previously transferred to the City during the time period January 1, 2011 and June 30, 2011 for no compensation. Assembly Bill 1484 Assembly Bill 1484 established a requirement for the successor agency to remit to the County auditor -controller three payments as determined by the auditor -controller which consist of a payment to be made in July 2012 for taxing entities' share of December 2011 property tax distribution to redevelopment agency/successor agency, a payment to be made in November 2012 related to Low -Moderate Income Housing Fund, and a payment to be made in April 2013 for unencumbered cash. As of the date of the report no payment in July 2012 was required and the future amounts due have not been determined by -the auditor - controller. Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency On December 26, 2011, the California Supreme Court upheld Assembly Bill I 26 ("the Bill') that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency' to hold the assets until they are distributed to other units of state and local government. On January 3, 2011, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-002. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of Califomia cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of. the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. 67 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private -purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private -purpose trust fund as an extraordinary gain (or loss). Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements. The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled as follows: Total extraordinary loss reported in the governmental funds - increase to net assets of the Succesory Agency Trust Fund $ (79,058,255) Deferred revenue reported in the governmentwide financial statements -increase in net assets of the Successor Agency Trust Fund (3,251,160) Unamortized debt issuance costs reported in government -wide financial statements - increase in net assets of the Successor Agency Trust Fund (4,323.334) Long-term debt reported in the government -wide financial statements - decrease to net assets of the Successor Agency Trust Fund 244,116,299 Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers (equal to amount of extraordinary gain reported in the government -wide financial statements of the City) $ 157,483,550 68 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and investments pooled with the City $ 23,193,145 Cash and investments with fiscal agent 57,077,193 $ 80,270,338 b. Loans Receivable Owner Participation Agreement — Garff Properties. LLC In July 2010, the former redevelopment agency entered into an Owner Participation Agreement (OPA) with an 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 auto 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. The balance at June 30, 2012, is $2,504,809. In June 2011, the former redevelopment agency entered into an Owner Participation Agreement (OPA) with an autodealer, Mega Dealer, LLC ("Torre Nissan") that provides for the Agency to provide a rehabilitation loan to Torre Nissan of up to $1,500,OOO for the remodeling of the existing dealership and an expansion of the dealership facility to accommodate a new line of electric and commercial vehicles. The new expansion will also include service and parts sales facilitates. In connection with the OPA, Torre Nissan has executed a promissory note, which is secured by a subordinated deed of trust, and in operation of the term of the note Nissan Motor Company ceases to exist, the note will be cancelled and the operating covenant will terminate. At the end of the ten-year operating covenant, the operating covenant will terminate and the note will be cancelled, and any outstanding loan balance will be forgiven. As of June 30, 2012, construction was in progress and $746,351 of the $1,500,000 had been expanded leaving an available balance of $753,649. c. Due from other Governments La Quints Community Park In July 2002, an advance of $4,167,912 was made from the former redevelopment agency to provide funding for the development of the publicly owned improvements to the La Quints Community Park. The advance accrues interest at the earnings rate of the City's investment pool fund. As of June 30, 2012, the remaining balance of the advance for the La Quints Community Park is $1,183,816. 1*1 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) La Quinta Library In April 2005, another advance of $2,490,273 was made from the former redevelopment agency 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, 2012, is $1,860,330. Hiohwav 111 Improvements In June 2012, an advance of $1,276,516 was made from the former redevelopment agency to the City of La Quinta's Transportation Development Fund to provide funding for the Highway 111 median public improvements. The advance accrues interest at 7%. As of June 30, 2012, the remaining balance of the advance is $502,775. d. Long -Term Debt The following debt was transferred from the Redevelopment Agency to the Successor Agency as of February 1, 2012 as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2012, follows: Transfers to Balance at Successor Balance at Due within one July 1, 2011 Agency' Additions Deletions June 30, 2012 year Tax allocation bonds $ - $ 134,810,000 $ - $ - $ 134,810,000 $ 3,940,000 Provident Loan - 1,486,285 - 12,673 1,473,612 32,516 US Department of Agriculture - 722,046 - 5,674 716,372 14,267 Revenue bonds - 108,195,000 - - 108,195,000 1,890,000 Unamortaed premiums/discounts (1,097,032) 23,780 2,343 (1,075,595) Total $ - $ 244,116,299 $ 23,780 $ 20,690 $ 244,119,389 $ 5,876,783 Tax Allocation Bonds On June 14, 2012, Moody's Investors Service (Woody's") downgraded all California tax allocation bonds rated 'Baal and above. As such, the Bonds' insured rating was downgraded from 'AT to 'Ba1' and underlying rating was downgraded from 'AT to 'Ba1'. According to Moody's, all California tax allocation bond ratings remain on review for possible withdrawal. As of June 30, 2012, the following issuances of Tax Allocation Bonds were outstanding: Series 1994, Project Area No. 1 Tax Allocation Refunding Bonds, Series 1994, were issued by the former redevelopment 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. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) 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, 2012, is $2,470,000. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 2,470,000 $ 90,155 Totals $ 2,470,000 $ 90,155 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 former redevelopment agency's Tax Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain capital improvements within the La Quints 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_. Tenn 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, 2012 is $15,760,000. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ - $ 819.520 2014 655,000 802,490 2015 690,000 767,520 2016 725;000 730,730 2017 765,000 691,990 2018.2022 4,465,000 2,805,270 2023-2027 5,740,000 1,485,900 2028-2032 2,730,000 143,780 Totals $ 15,760,000 $ 8,247,200 71 CITY OF LA QUINTA NOTES TO FINANCIAL, STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Series 1998, Project Area No. 2 Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the former redevelopment 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 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, 2012 is $5,425,000. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 140,000 $ 279,819 2014 145,000 272,516 2015 150,000 264,956 2016 160,000 257,013 2017 170,000 248,556 2018-2022 975.000 1,000,075 2023-2027 1,270,000 807,188 2028-2032 1,635,000 428,006 2033-2037 780,000 41,475 Totals $ 5,425,000 $ 3,599,604 Series 2001, Project Area No. 1 On August 15, 2001, the former redevelopment 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, 2012, is $48,000,000 with an unamortized discount of $332,065. 72 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ - $ 2,430,720 2014 1,565,000 2,391,695 2015 1,645,000 2,311,345 2016 1,730,000 2,226,970 2017 1,815,000 2,138,345 2018-2022 '10,525,000 9,200,475 2023-2027 13,455,000 6,186,173 2028-2032 17,265,000 2,288,753 Totals $ 48,000,000 $ 29,174,376 Series 2002, Project Area No. 1 On June 12, 2002, the former redevelopment agency issued tax' allocation bonds in the amount of $40,000,000 to finance capital projects benefiting the La Quints 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 tens bonds. Interest Rates on serial bonds range from 1.76% and 4.00% and are payable semiannually on March 1 and September 1 of each year until maturity. Tenn 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, 2012 is $34,380,000 with an unamortized discount of $294,744. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 735,000 $ 1,727,981 2014 705,000 1.695,666 2015 735,000 1,659,656 2016 770,000 1,622,031 2017 810,000 1,582,631 2018-2022 4,710,000 7,246,156 2023-2027 6,025,000 5,899,091 2028-2032 12,385,000 3,795,959 2033-2037 7,505,000 192,316 Totals $ 34,380,000 $ 26,420,377 73 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Series 2003, Project Area No. 1 On September 1, 2003, the former redevelopment 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 semiannually on March 1 and September 1 of each year, commencing March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September 1, 2013 through September 1, 2032, are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each September 1 thereafter at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. The principal balance of outstanding bonds at June 30, 2012, is $22,775,000 with an unamortized discount of $193,423. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 560,000 $ 1,423,495 2014 590,000 1,392,158 2015 620,000 1,356,736 2016 660,000 1,316,800 2017 700,000 1,274,368 2018-2022 4,220,000 5,636,456 2023-2027 5,730,000 4,085,165 2028-2032 7,815,000 1,926,043 2033-2037 1,880,000 60,536 Totals $ 22,775,000 $ 18,471,757 Series 2011, Project Area No. 2 On June 6, 2011, the former redevelopment agency issued subordinate taxable tax allocation bonds in the amount of $6,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 2. The 2001 tax allocation bonds were issued at a discount of $86,207 and issuance costs of $108,500. The bonds consist of $190,000 of term bonds that accrue interest at 5.375% and mature on September 1, 2016, $280,000 of term bonds that accrue interest at 7.125% and mature on September 1, 2021, $380,000 of term bonds that accrue interest at 7.600% and mature on September 1, 2026, and $5,150,000 of term bonds that accrue interest at 8.150% 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 fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2012, is $6,000,000 with an unamortized discount of $83,024. 74 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former.Redevelopment Agency (Continued) The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 35,000 $ 478,768 2014 35,000 476,886 2015 40,000 475,005 2016 40,000 472,855 2017 40,000 470,705 2018-2022 280,000 2,305,725 2023-2027 380,000 2,189,825 2028-2032 555,000 2,015,497 2033.2037 2,190,000 1,643,449 2038-2042 2,405,000 402,198 Totals $ 6,000,000 $ 10,930,913 Washington Street Apartments In October 2008, the former redevelopment agency acquired the Washington Street Apartments for cash and the assumption of the following debt: . Provident Bank Loan This loan was originally entered into with the previous owner of the Washington Street Apartments and Provident Bank for $1,696,000 in August 2001 at an 8.36% interest rate. The loan Is amortized on a thirty year basis with the outstanding balance due in twenty years or August 2021. The outstanding principal balance in October 2008 when the property was acquired by the former redevelopment 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, 2012 is $1,473,612. The minimum annual requirements to amortize the loan payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 32,517 $ 121,959 2014 35,340 119,134 2015 38,411 116,064 2016 41,748 112,726 2017 45,375 109,099 2018.2022 1,280,221 408,070 Totals $ 1,473,612 $ 987,052 76 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) 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 former redevelopment 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, 2012 is $716,372. Principal Interest 2013 $ 14,267 $ 71,014 2014 15,761 69,520 2015 17,412 67,870 2016 19,235 66,047 2017 21,249 64,033 2018-2022 144,664 281,745 2023-2027 238,017 188,392 2028-2032 245,768 45,420 Totals $ 716,373 $ 854,041 2004 Series A Local Agency Revenue Bonds On June 29, 2004, the La Quints Financing Authority issued revenue bonds in the amount of $90,000,000 to finance projects benefiting low and moderate income housing in La Quints 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 76 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) redemption price equal to the principalamount 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, 2012 is $79,345,000 with an unamortized premium of $123,717. The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: Principal Interest 2013 $ 1,890,000 $ 4,016,581 2014 1,975,000 3,924,681 2015. 2,075,000 3,823,431 2016 2,175,000 3,714,463 2017 2,290,000 3,597,256 2018-2022 13,385,000 16, 001,125 2023-2027 17,280,000 12,014,144 2028-2032 22,115,000 7,061,797 2033-2037 16,160, 000 1,269,975 Totals $ 79,345,000 $ 55,423,453 2011 Series A Local Agency Subordinate Taxable Revenue Bonds On June 9, 2011, the La Quints Financing Authority issued revenue bonds in the amount of $28,850,000 to finance projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. The 2011 local agency subordinate taxable revenue bonds were issued with issuance costs of $323,375 and a discount of $308,839. Interest is payable semi-annually on March 1 and September 1 of each year, commencing September 1, 2011. Interest payments range from 3.750% to 8.185% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September 1, 2026, September 1, 2031 and September 1, 2036, are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2022, September 1, 2027, and September 1, 2032, 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 fund 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, 2012 is $28,850,000 with an unamortized discount of $296,056. 77 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) The minimum annual requirements to amortize the bond payable as of June 30, 2012, are as follows: 2013 2014 2015 2016 2017 2018-2022 2023-2027 2028-2032 2033-2037 Totals e. Pledged Tax Revenues Principal Interest $ - $ 2,171,767 520,000 2,171,767 540,000 2,152,267 565,000 2,127,967 590,000 2,099,717 3,560,000 9,901,856 5,035,000 8,421,225 7,310,000 6,149,320 10,730,000 2,731,696 $ 28,850.000 $ 37,927,582 The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set -aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $437,592,660 with annual debt service requirements as indicated below. For the current year, the total property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $45,566,968 and the debt service obligation on the bonds was $18,505,972. f. Conduit Debt Financing 2002 Series B Multifamily Housing Revenue Bonds In April 2002, the 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, 2012, are $2,700,000. 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. g. Insurance The Successor Agency of the former redevelopment agency is covered under the insurance policy of the City of La Quinta at June 30, 2012. 78 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 Gamina Fund — To account for contributions for public safety activities to reduce crime and increase public safety. Liahtina 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. 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. AS 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. Law Enforcement — To account for law enforcement grants. 79 Proposition 1 B - To account for the revenues and expenditures related to Proposition 1 B 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. 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 — Project 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. Transportation 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. 2011 Low/Mod Bond Fund — To account for the 2011 Tax Allocation bond proceeds that will be used to benefit low and moderate income housing in La Quinta Redevelopment Project Area No. 1 and Project Area No. 2. 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. Redevelopment Agency Project Area No. 1 — 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. 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental long -tens 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. 80 THIS PAGE INTENTIONALLY LEFT BLANK 81 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Federal State Gas Tax Library Assistance SLEBG Assets: Pooled cash and investments $ $ 2.006,317 $ $ 1,456 Receivables: Accounts - - Notes and loans Accrued interest 97 70 7 Due from other governments 124,624 8,879 25,000 Total Assets $ 124,721 $ 2,006,387 $ 8,879 $ 26,463 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ $ $ Deferred revenues - 8,882 Unearned revenues - - Deposits payable - Due to other governments - - Due to other funds - 8,879 Advances from other funds - - Total Llabllities 17,761 Fund Balances: Nonspendable: Notes and loans - - Restricted for: Planning and development projects - Public safety - 26,463 Community services - 2,006,387 - Public works 124,721 - Capital Projects - Debt service Unassigned (8,882) Total Fund Balances 124,721 2,006,387 (8,882) 26,463 Total Liabilities and Fund Balances $ 124,721 $ 2,006,387 $ 8,879 $ 26,463 W, CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2012 (Continued) Assets: Pooled cash and investments Receivables: Accounts Notes and loans Accrued interest Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Deferred revenues Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Special Revenue Funds Congestion Lighting and Management Air Indian Gaming Landscaping Quimby Quality Fund $ 1,184 $ - $ 8,287,475 $ - 2,702 21,102 - $ 1,184 E 21,102 $ 8,290,177 $ 1,184 Total Liabilities 1,184 Fund Balances: Nonspendable: Notes and loans - - Restricted for: Planning and development projects - - Public safety - - - Community services - - 8,290,177 Public works 21,102 - Capital Projects - - Debt service - Unassigned Total Fund Balances 21,102 8,290,177 Total Liabilities and Fund Balances $ 1,184 $ 21,102 E 8,290,177 $ 83 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Revenue Funds Art in Public South Coast Public Safety Places Air Quality AB 939 Assets: Pooled cash and investments $ 27,112 $ 868,094 $ 78,732 $ 925,548 Receivables: Accounts - - - - Notes and loans - - - - Accrued interest 9 282 26 302 Due from other governments Total Assets $ 27,121 $ 868,376 $ 78,758 $ 925,850 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ 2,883 $ $ Deferred revenues - Uneamed revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities 2,883 Fund Balances: Nonspendable: Notes and loans - Restricted for: Planning and development projects - 78,758 925,850 Public safety' 27,121 - - Community services - 865,493 Public works - - - - Capital Projects - - - - Debt service - - - - Unassigned - Total Fund Balances 27,121 865,493 78,758 925,850 Total Liabilities and Fund Balances E 27,121 $ 868,376 $ 78,758 $ 925,850 M CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds Justice Development Law Proposition Assistance Agreement Enforcement 1B Grant Assets: Pooled cash and investments $ 200,919 $ 160,275 $ 287,213 $ Receivables: Accounts - Notes and loans - - - Accrued interest 65 3 94 - Due from other governments - 35,506 - 5,295 Total Assets $ 200,984 $ 195,784 $ 287,307 $ 5,295 Liabilities and Fund Balances: Liabilities: Accounts payable $ $ 4,181 $ $ Deferred revenues - Uneamed revenues 287,307 Deposits payable 200,984 - Due to other governments - Due to other funds 5,295 Advances from other funds Total Liabilities 200,984 4,181 287,307 5,295 Fund Balances: Nonspendable: Notes and loans Restricted for. Planning and development projects - Public safety 191,603 Community services Public works Capital Projects Debt service Unassigned Total Fund Balances 191,603 Total Liabilities and Fund Balances $ 200,984 $ 195,784 $ 287,307 $ 5,295 85 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Capital Special Revenue Funds Projects Funds Housing Low/Moderate Low/Moderate Authority PA Income Housing Income Housing No.1 PA No. 1 PA No. 2 Infrastructure Assets: Pooled cash and investments $ 1,496,175 $ - $ - $ 267,719 Receivables: Accounts 248,178 - - - Notes and loans 4,110,651 - - - Accrued interest 449 - - 82 Due from other governments Total Assets $ 5,855,453 $ $ $ 267,801 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,248 $ $ $ Deferred revenues 2.045,040 Unearned revenues Deposits payable 23,922 Due to other governments - Due to other funds Advances from other funds Total Liabilities 2,070,210 Fund Balances: Nonspendable: Notes and loans 2,065,611 Restricted for: Planning and development projects 1,719,632 Public safety - Community services Public works Capital Projects 267,801 Debt service - Unassigned - Total Fund Balances 3,785,243 267,801 Total Liabilities and Fund Balances $ 5,855,453 $ $ S 267,801 m CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Assets: Pooled cash and investments Receivables: Accounts Notes and loans Accrued interest Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Deferred revenues Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Notes and loans Restricted for: Capital Projects Funds Parks and Library Community Transportation Recreation Development Center $ 3,123,810 $ - $ - $ 1,198,960 65,245 970 390 $ 3,190,025 $ $ $ 1,199,350 65,245 502,775 1,183,816 1,860,330 568,020 1,183,816 1,860,330 Planning and development projects - - Public safety - - Community services - - - Public works - - - - Capital Projects 2,622,005 - - 1,199,350 Debt service - - - Unassigned (1,183,816) (1,860,330) Total Fund Balances 2,622,005 (1,183,816) (1,860,330) 1,199,350 Total Liabilities and Fund. Balances $ 3,190,025 $ $ $ 1,199,350 87 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Accrued interest Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Deferred revenues Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Notes and loans Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Debt service Capital Projects Funds 2011 Low/Mod Street Facility Park Facility Fire Facility Bond 2,021,772 913,642 2,021,772 913,642 Unassigned (2,021,772) (913,642) Total Fund Balances (2,021,772) (913,642) Total Liabilities and Fund Balances $ $ $ $ m CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Debt Service Capital Projects Funds Funds Redevelopment Redevelopment 2004 Low/Mod . Agency PA No. Agency PA No. Financing Bond 1 2 Authority Assets: Pooled cash and investments $ $ - $ $ 2,534 Receivables: Accounts Notes and loans Accrued interest Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Deferred revenues Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Nonspendable: Notes and loans Restricted for. Planning and development projects Public safety Community services Public works E E E $ 2,534 Capital Projects - Debt service 2,534 Unassigned - Total Fund Balances 2,534 Total Liabilities and Fund Balances $ $ $ $ 2,534 89 CITY OF LA OUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Total Governmental Funds Assets: Pooled cash and investments $ 18,933,523 Receivables: Accounts 313,423 Notes and loans 4,110,651 Accrued interest 5,548 Due from other governments 220,406 Total Assets $ 23,583,551 Liabilities and Fund Balances: Liabilities: Accounts payable $ 8,312 Deferred revenues 2,053,922 Unearned revenues 353,736 Deposits payable 224,906 Due to other governments 3,546,921 Due to other funds 14,174 Advances from other funds 2,935,414 Total Liabilities 9,137,385 Fund Balances: Nonspendable: Notes and loans 2,065,611 Restricted for: Planning and development projects 2,724,240 Public safety 245,187 Community services 11,162,057 Public works 145,823 Capital Projects 4.089,156 Debt service 2,534 Unassigned (5,988,442) Total Fund Balances 14,446,166 Total Liabilities and Fund Balances $ 23,583,551 90 THIS PAGE INTENTIONALLY LEFT BLANK 91 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30.2012 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 Proceeds from sale of capital asset Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) SDecial Revenue Funds Federal State Gas Tax Library Assistance SLEBG 1,224,692 2,546,568 13,540 100,000 1,357 824 177 1,226,049 2,547,392 13,540 100,177 - 1,504,944 1,473,801 - 1,473,801 1,504,944 (247,752) 1,042,448 13,540 100,177 (22,422) (145.029) (22,422) (145,029) Net Change in Fund Balances (247,752) 1,042,448 (8,882) (44,852) Fund Balances, Beginning of Year 372,473 963,939 71,315 Fund Balances, End of Year $ 124,721 $ 2,006,387 $ (8,882) $ 26,463 92 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30.2012 (Continued) Special Revenue Funds Congestion Lighting and Management Indian Gaming Landscaping Quimby Air Quallty Revenues: Taxes $ $ $ $ Assessments 950,292 - Intergovernmental 105,844 - 272,503 Charges for services - - - Use of money and property - - 19,499 Developer participation - - 7,123 Miscellaneous - - Total Revenues 105,844 950,292 26,622 272,503 Expenditures: Current: General government Public safety Planning and development - Communily services - - Public works - 953,072 Capital outlay - - Debt service: Principal refirement Interest and fiscal charges - Total Expenditures 953,072 Excess (Deficiency) of Revenues Over (Under) Expenditures 105,844 (2,780) 26,622 272.503 Other Financing Sources (Uses): Transfers in - - - Transfers out (105,844) (159,281) (272,503) Proceeds from sale of capital asset Total Other Financing Sources (Uses) (105,844) (159,281) (272,503) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Net Change in Fund Balances (2,780) (132,669) Fund Balances, Beginning of Year 23,882 8,422,836 Fund Balances, End of Year $ $ 21,102 $ 81290,177 $ 93 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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 Proceeds from sale of capital asset Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds AR In Public South Coast Public Safety Places Air Quality AB 939 58,674 72 2,148 161 1,968 - 62,680 - - 72 64,828 58,835 1,968 - 19,005 86,696 15,088 - - 45,786 60,874 19,005 86,696 72 3,954 39,830 (84,728) 2,000 - (25,368) (64,663) 2,000 (25,368) (64,663) 2,072 3,954 14,462 (149,391) 25,049 861,539 64,296 1,075,241 $ 27,121 $ 865,493 $ 78,758 $ 925,850 0 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND'SALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (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 Proceeds from sale of capital asset Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Justice Development Law Proposition Assistance Agreement Enforcement I Grant 241,917 64,316 14,749 90 1,396 242,007 66,712 14,749 50,404 50,404 191.603 65,712 14,749 (65,712) ('14,749) (65,712) (14,749) 191,603 $ $ 191,603 $ $ 95 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30.2012 Capital Projects Special Revenue Funds Funds Housing LOWIModerate Lowimoderate Authority PA Income Housing Income Housing No. I PA No. 1 PA No. 2 Infrastructure Revenues: Taxes $ - $ 4,123,224 $ 2,341,482 $ Assessments - - _ Intergovernmental - Charges for services - - _ _ Use of money and property 365,958 13,419 35,160 774 Developer participation - - _ _ Miscellaneous - 1,468 8,745 Total Revenues 365,958 4,138,111 2,385,387 774 Expenditures: Current: General government Public safety - - - Planning and development 424,186 774,816 391.937 Community services - - - Public works - Capital outlay - - - Debt service: Principal retirement - 1,635,775 620,135 Interest and fiscal charges 1,746,648 932,376 Total Expenditures 424,186 4,157,239 1,944,448 Excess (Deficiency) of Revenues Over (Under) Expenditures (58,228) (19,128) 440,939 774 Other Financing Sources (Uses): Transfers in 2,695,719 - - Transfers out (28,321) (1,704,941) (2,112,912) (140,775) Proceeds from sale of capital asset 875,275 Total Other Financing Sources (Uses) 846,954 990,778 (2,112,912) (140,775) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) 2,067,559 (11,464,844) (21,269,373) Net Change in Fund Balances 2,856,285 (10,493,194) (22,941,346) (140,001) Fund Balances, Beginning of Year 928,958 10,493,194 22,941,346 407,802 Fund Balances, End of Year $ 3,785,243 $ $ $ 267,801 M CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (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 Proceeds from sale of capital asset Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Capital Protects Funds Parks and Library Community Transportation Recreation Development Center 7,383 - 3,018 344,593 183,612 72,963 15,290 80,000 - 431,976 183,612 72,963 18,308 72,523 6,586 9,514 72,523 6,586 9,514 359,453 177,026 63,449 18,308 (1,230,979) (1,230,979) Net Change in Fund Balances (871,526) 177,026 63,449 18,308 Fund Balances, Beginning of Year 3,493,531 (1,360,842) (1,923,779) 1,181,042 Fund Balances, End of Year $ 2,622,005 $ (1,183,816) $ (1,860,330) $ 1,199,350 97 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 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 Proceeds from sale of capital asset Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Capital Projects Funds 2011 Low/Mod Street Facility Park Facility Fire Facility Bond - 1 - 12,758 4,422 15,514 3,134 12,758 4,423 15,514 3,134 9,772 4,593 8,678 9,772 4,593 8,678 2,986 4,423 10,921 (5,544) 4,423 - (4,423) 4,423 (4,423) - (25,529,926) 7,409 10,921 (25.535,470) (2,029,181) (924,563) 25,535,470 E (913,842) $ CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30.2012 (Continued) Debt Service Capital Projects Funds 2004 Funds Low/Mod Redevelopment Redevelopment Financing Bond Agency PA No.1 Agency PA No. 2 Authority Revenues: Taxes $ - $ $ - $ Assessments - Intergovemmental - - Charges for services - - 9,107 Use of money and property 255 1,106 54,632 674,859 Developer participation - - - Miscellaneous - - Total Revenues 255 1,106 54,632 683,966 Expenditures: Current: General government 8,075 Public safety - - - Planning and development 276,642 132,230 Community services - - Public works Capital outlay Debt service: Principal retirement 445,000 Interest and fiscal charges - - 228,521 Total Expenditures 276,642 132,230 681,596 Excess (Deficiency) of Revenues Over (Under) Expenditures 255 (275,536) (77,598) 2,370 Other Financing Sources (Uses): Transfers in - 47,130 Transfers out (309,461) (1,294,749) (288,212) (2,695,719) Proceeds from sale of capital asset Total Other Financing Sources (Uses) (309,461) (1,247,619) (288,212) (2,695,719) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) (2,997,949) (21,503,166) (4,203,975) Net Change in Fund Balances (3,307,155) (23,026,321) (4,569,785) (2,693,349) Fund Balances, Beginning of Year 3,307,155 23,026,321 4,569,785 2,695,883 Fund Balances, End of Year $ $ $ S 2,534 T CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30.2012 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 Proceeds from sale of capital asset Total Other Financing Sources (Uses) Extraordinary gain/(loss) on dissolution of redevelopment agency (Note 23) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Total Governmental Funds $ 6,464,706 950,292 4,642,803 9,107 1,187,391 718,955 90,213 14,063,467 8,075 50,404 2,105,512 1,520,032 2,426,873 45,786 2,700,910 3,019,211 11,876,803 2,186,664 2.749,272 (10,686,063) 875,275 (7,061,516) (84,901,674) (89,776,526) 104,222,692 E 14,446,166 100 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE STATE GAS TAX YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and, property, Amounts Available for Appropriation Charges to Appropriation (Outflow): Public works Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 372,473 $ , 372,473 $ 372,473 $ - 994,700 994,700 1,224,692 229,992 200 200 1,357 1,157 1,367,373 1,367,373 1,598,522 231,149 994,900 1,367,373 1,473,801 (106,428) 994,900 1,367,373 1,473,801 (1106,428) $ 372A73 $ $ 124,721 $ 124,721 101 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIBRARY YEAR ENDED JUNE 30, 2012 Variance with Final -Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 963,939 $ 963,939 $ 963,939 $ - Resources (Inflows): Intergovernmental 2,123.900 2,123,900 2,546,568 422,668 Use of money and property 6,400 6,400 824 (5,576) Amounts Available for Appropriation 3,094,239 3,094,239 3,511,331 417,092 Charges to Appropriation (Outflow): Community services 1,776,094 1,776,094 1,504,944 271,150 Total Charges to Appropriations 1,776,094 1,776,094 1,504,944 271,150 Budgetary Fund Balance, June 30 $ 1,318,145 $ 1,318,145 $ 2,006,387 $ 688,242 102 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FEDERAL ASSISTANCE YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out . Total Charges to Appropriations Budget Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) 175,000 145,833 13,540 (132,293) 175,000 145,833 13,540 (132,293) 175,000 145,833 22,422 123,411 175,000 145,833 22,422 123,411 Budgetary Fund Balance, June 30 103 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE SLEBG YEAR ENDED JUNE 36, 2012 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 Budget Amounts Original Final $ 71,315 $ 71,315 - 100,000 - 300 71,315 171,615 Variance with Final Budget Actual Positive Amounts (Negative) $ 71,315 $ 100,000 - 177 (123) 171,492 (123) 145,029 145,029 145,029 145,029 Budgetary Fund Balance, June 30 E 71,315 $ 26,586 $ 26,463 $ (123) 104 CITY OF LA OUINTA BUDGETARY COMPARISON SCHEDULE INDIAN GAMING YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 105,844 105,844 105,844 105,844 105,844 105,844 105,844 105,844 105,844 105,844 105,844 105,844 Budgetary Fund Balance, June 30 $ $ $ $ 105 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIGHTING AND LANDSCAPING YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 23,882 $ 23,882 $ 23,882 $ Resources (Inflows): Assessments 964,219 979,114 950,292 (28,822) Amounts Available for Appropriation 988,101 1,002,996 974,174 (28,822) Charges to Appropriation (Outflow): Public works 1,002,996 1.002,996 953,072 49,924 Total Charges to Appropriations 1,002,996 1,002,996 953,072 49,924 Budgetary Fund Balance, June 30 $ (14,695) $ $ 21,102 $ 21,102 106 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE QUIMBY YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 8,422,836 $ 8,422,836 $ 8,422.836 $ - Resources (Inflows): Use of money and property 20,000 20,000 19,499 (501) Developer participation 30,000 30,000 7,123 (22,877) Amounts Available for Appropriation 8,472,836 8,472,836 8,449,458 (23,378) Charges to Appropriation (Outflow): Community services - 200,000 - 200,000 Transfers out 325,000 8,269,543 159,281 8,110,262 Total Charges to Appropriations 325,000 8,469,543 159,281 8,310,262 Budgetary Fund Balance, June 30 E 8,147,836 $ 3,293 $ 8,290,177 $ 8,286,884 107 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CONGESTION MANAGEMENT AIR QUALITY FUND YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final. Amounts (Negative) _ 416,026 272,503 (143,523) 416,026 272,503 (143,523) 416,026 272,503 143,523 416,026 272,503 143,523 Budgetary Fund Balance, June 30 $ $ $ $ 108 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PUBLIC SAFETY YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Public safety Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 25,049 $ 25,049 $ '25,049 $ 100 100 72 (28) 2,000 2,000 2,000 27,149 27,149 27,121 (28) 2,000 2,000 2,000 2,000 2,000 2,000 $ 25,149 $ 25,149 $ 27,121 $ 1,972 109 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 861,539 $ 861,539 $ 861,539 $ - Resources (Inflows): Use of money and property 2,300 2,300 2,148 (152) Developer participation 97,500 97,500 62,680 (34,820) Amounts Available for Appropriation 961,339 961,339 926,367 (34,972) Charges to Appropriation (Outflow): Community services 24,700 24,700 15,088 9,612 Capital outlay 111,500 111,500 45,786 65,714 Transfers out 200,000 400,000 400,000 Total Charges to Appropriations 336,200 536,200 60,874 475,326 Budgetary Fund Balance, June 30 $ 625,139 $ 425,139 $ 865,493 $ 440,354 110 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE SOUTH COAST AIR QUALITY YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 64,296 $ 64,296 $ 64,296 $ Resources (Inflows): Intergovernmental 40,000 65,368 58,674 (6,694) Use of money and property 200 200 161 (39) Amounts Available for Appropriation 104A96 129,864 123,131 (6,733) Charges to Appropriation (Outflow): Planning and development 40,200 16,200 19,005 (2,805) Transfers out 25,368 25,368 Total Charges to Appropriations 40,200 41,568 44,373 (2,805) Budgetary Fund Balance, June 30 $ 64,296 $ 88,296 S 78,758 E (9,538) 111 CITY OF LA OUINTA BUDGETARY COMPARISON SCHEDULE AB 939 YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,075,241 $ 1,075,241 $ 1,075,241 $ Resources (Inflows): Use of money and property 4,300 4,300 1,968 (2,332) Amounts Available for Appropriation 1,079,541 1,079,541 1,077,209 (2,332) Charges to Appropriation (Outflow): Planning and development 114,080 126,305 86,696 39,609 Transfers out 268,146 64,663 203,483 Total Charges to Appropriations 114,080 394,451 151,359 243,092 Budgetary Fund Balance, June 30 $ 965,461 $ 685,090 E 925,850 $ 240,760 112 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LAW ENFORCEMENT YEAR ENDED JUNE 30, 2012 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 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 241,025 241,917 892 _ 90 90 241,025 242,007 982 _ 51,808 50,404 1,404 61,808 50,404 1,404 Budgetary Fund Balance, June 30 $ $ 189,217 $ 191,603 $ 2,386 113 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PROPOSITION 16 YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 352,382 64,316 (288,066) 1,396 1,396 352,382 65,712 (286,670) 352,382 65,712 286,670 352,382 65,712 286,670 114 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ Resources (Inflows): Intergovernmental 16,152 14,749 (1,403) Amounts Available for Appropriation n 16,152 14,749 (1,403) Charges to Appropriation (Outflow): Transfers out 16,152 14,749 1,403 Total Charges to Appropriations M 16,152 14,749 1,403 Budgetary Fund Balance, June 30 $ $ $ $ 115 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY PA NO. 1 YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Transfers in Proceeds from sale of capital asset Amounts Available for Appropriation Charges to Appropriation (Outflow): Planning and development Transfers out Extraordinary gain/(loss) on dissolution of redevelopment agency Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 928,958 $ 928,958 $ 928,958 $ - 243,800 243,800 365,958 122,158 - 2,035,388 - (2,035,388) 125,000 590,000 875,275 285,275 1,297,758 3,798,146 2,170,191 (1,627,955) 368,112 1,100,625 424,186 676,439 - 69,497 28,321 41,176 (2,067,559) 2,067,559 368,112 1,170,122 (1,615,052) 2,785,174 Budgetary Fund Balance, June 30 E 929,646 $ 2,628,024 $ 3,785,243 $ 1,157,219 116 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE. LOWIMODERATE INCOME HOUSING PA NO.1 YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original. Final Amounts (Negative) Budgetary Fund Balance, July 1 $10,493,194 $10,493,194 $10,493,194 $ Resources (Inflows): Taxes 8,802,400 4,123,224 4,123,224 Use of money and property 44,600 44,600 13,419 (31,181) Miscellaneous - - 1,468 1,468 Transfers in 6,535,056 2,695,719 (3,839,337) Amounts Available for Appropriation 19,340,194 21,196,074 17,327,024 (3,869,050) Charges to Appropriation (Outflow): Planning and development 2,868,136 2,604,751 774,816 1,829,935 Debt service: Principal retirement - 1,635,775 1,635,775 Interest and fiscal charges - 3,850,670 1,746,648 2,104,022 Transfers out 8,357,965 6,101,691 1,704,941 4,396,750 Extraordinary gainl(loss) on dissolution of redevelopment agency - 11,464,844 (11,464.844) Total Charges to Appropriations 11,226,101 14,192,887 17,327,024 (3,134,137) Budgetary Fund Balance, June 30 $ 8,114,093 $ 7,003,187 $ 117 CITY OF LA OUINTA BUDGETARY COMPARISON STATEMENT LOW/MODERATE INCOME HOUSING PA NO.2 YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 22.941,346 $22,941,346 $ 22,941,346 $ Resources (Inflows): Taxes 4.800,480 2,341.482 2,341,482 Use of money and property 60,800 60,800 35,160 (25,640) Miscellaneous - - 8,745 8,745 Transfers in 1,651,794 (1,651,794) Amounts Available for Appropriation 27,802,626 26,995,422 25,326,733 (1,668,689) Charges to Appropriation (Outflow): Planning and development 1,231,960 1,040,010 391,937 648,073 Debt service: Principal retirement - 595,650 620,135 (24,485) Interest and fiscal charges - 1,872,502 932,376 940,126 Transfers out 4,634,386 12,126,274 2,112,912 10,013,362 Extraordinary gain/(loss) on dissolution of redevelopment agency - 21,269,373 (21,269,373) Total Charges to Appropriations 5,866,346 15,634,436 25,326,733 (9,692,297) Budgetary Fund Balance, June 30 $ 21,936,280 $11,360,986 $ $ (11,360,986) 118 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,154,860 $ 1,154,860 $ 1,154,860 $ Resources (Inflows): Intergovernmental 12,242,911 23,242,544 2,425,180 (20,817,364) Developer participation 202,200 509,704 101,699 (408.005) Transfers in 7,751,183 87,666,834 9,394,375 (78,272,459) Amounts Available for Appropriation 21,351,154 112,573,942 13,076,114 (99,497,828) Charges to Appropriation (Outflow): Capital outlay 20,196,294 111,475,030 13,119,645 98.355,385 Transfers out - 47,130 (47,130) Total Charges to Appropriations 20,196,294 111,475,030 13,166,775 98,308,255 Budgetary Fund Balance, June 30 $ 1,154,860 $ 1,098,912 $ (90,661) 119 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CIVIC CENTER YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (7,012,033) $ (7,012,033) $ (7,012,033) $ - Resources (Inflows): Developer participation 127.600 69,482 82,490 13,008 Amounts Available for Appropriation (6,884,433) (6,942,551) (6,929,543) 13,008 Charges to Appropriation (Outflow): General government 202,056 202,056 204,787 (2,731) Debt service: Interest and fiscal charges 35,000 35,000 35,160 (160) Total Charges to Appropriations 237,056 237,056 239,947 (2,891) Budgetary Fund Balance, June 30 $ (7,121,489) $ (7,179,607) $ (7,169,490) $ 10,117 120 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE INFRASTRUCTURE YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 407,802 $ 407,802 $ 407,802 $ 100 300 774 474 407,902 408,102 408,576 474 393,074 140,775 252,299 393,074 140,775 252,299 $ 407,902 $ 15,028 E 287,801 $ 252,773 121 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE TRANSPORTATION YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (inflows): Use of money and property. Developer participation Miscellaneous Amounts Available for Appropriation Charges to Appropriation (Outflow):' Debt service: Interest and fiscal charges Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 3,493,531 $ 3,493,531 $ 3,493,531 $ - 1,800 1,800 7,383 5,583 441,500 353,410 344,593 (8,817) 80,000 80,000 80,000 4,016,831 3,928,741 3,925,507 (3,234) - 76,802 72,523 4,279 1,163,104 4,078,612 1,230,979 2,847,633 1,163,104 4,155,414 1,303,502 2,851,912 Budgetary Fund Balance, June 30 ; 2,853,727 $ (226,673) E 2,622,005 ; 2,646,678 122 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,360,842) $ (1,360,842) $ (1,360,842) $ - Resources (Inflows): Developer participation 89,200 167,556 183.612 16,056 'Amounts Available for Appropriation (1,271,642) (1,193,286) (1,177,230) 16,056 Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges 7,100 7,100 6,586 514 Total Charges to Appropriations 7,100 7,100 6,586 514 Budgetary Fund Balance, June 30 $ (1,278,742) $ (1,200,366) $ (1,183,816) $ 16,570 123 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIBRARY DEVELOPMENT YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Developer participation Amounts Available for Appropriation Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (1,923,779) $ (1,923,779) $ (1,923,779) $ 35,500 66,573 72,963 6,390 (1,888,279) (1,857,206) (1,850,816) 6,390 9,800 9,800 9,514 286 9,800 9,800 9,514 286 Budgetary Fund Balance, June 30 $ (1,898,079) E (1,867,006) $ (1,860,330) $ 6,676 124 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE COMMUNITY CENTER YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriation Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,181,042 $ 1,181,042 $ 1,181,042 $ 5,900 5,900 3,018 (2,882) 7,400 13,958 15,290 1,332 1,194,342 1,200,900 1,199,350 (1,550) $1,184,342 S 1,200,900 $ 1,199,350 $ (1,550) 125 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE STREET FACILITY YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Developer participation Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Debt service; Interest and fiscal charges Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (2,029,181) $ (2,029,181) $ (2,029,181) $ 17,800 13,508 12,758 (750) 2,200 2,200 4,423 2,223 (2,009,181) (2,013,473) (2,012,000) 1,473 10,000 10,000 9,772 228 10,000 10,000 9,772 228 Budgetary Fund Balance, June 30 $ (2,019,18'1) $ (2,023,473) iKI CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PARK FACILITY YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 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 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 2,200 4,026 4,422 396 2,200 4,026 4,423 397 2,200 2,200 4,423 (2,223) 2,200 2,200 4,423 (2,223) $ $ (1,826) 127 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FIRE FACILITY YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (924,563) $ (924,563) $ (924,563) $ - Resources (Inflows): Developer participation 29,800 15,731 15,514 (217) Amounts Available for Appropriation (894,763) (908,832) (909,049) (217) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges 4,700 4,700 4,593 107 Total Charges to Appropriations 4,700 4,700 4,593 107 Budgetary Fund Balance, June 30 128 CITY OF LA OUINTA BUDGETARY COMPARISON, SCHEDULE 2011 LOWIMOD BOND YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 25,535,470 $ 25,535,470 $ 25,535,470 $ Resources (Inflows): Use of money and property 5,000 3,134 (1,866) Amounts Available for Appropriation 26,635,470 25,540,470 26,538,604 (1,866) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges - - 8,678 . (8,678) Transfers out - 25,526,567 - 25,526,567 Bond Issuance Costs - 11,000 - 11,000 Extraordinary gain/(loss) on dissolution of redevelopment agency - 25,529,926 (25,529,926) Total Charges to Appropriations 25,537,567 25,538,604 (1,037) Budgetary Fund Balance, June 30 ; 25,535 470 ; 2,903 $ $ (2,903) 129 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE 20" LOWIMOD BOND YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Extraordinary gain/(loss) on dissolution of redevelopment agency Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 3,307,155 $ 3,307,155 $ 3,307,155 $ 4,815 500 255 (245) 3,311,970 3,307,655 3,307,410 (245) 3,307,155 309,461 2,997,694 - 2,997,949 (2,997,949) 3,307,155 3,307,410 (255) Budgetary Fund Balance, June 30 $ 3,311,970 $ 500 $ E (500) W141 CITY OF LA GUINTA BUDGETARY COMPARISON SCHEDULE REDEVLOPMENT AGENCY PA NO.1 - CAPITAL PROJECT YEAR ENDED JUNE 30, 2012 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 Extraordinary gain/(loss) on dissolution of redevelopment agency Total Charges to Appropriations Budget Amounts Original Final $23,026,321 $23,026,321 Variance with Final Budget Actual Positive Amounts (Negative) $ 23,026,321 $ 44,500 44,500 1,106 (43,394) 5,000,000 5,000,000 47,130 (4,952,870) 28,070,821 28,070,821 23,074,557 (4,996,264) 530,025 477,685 276,642 201,043 - 31,171,576 1,294,749 29,876,827 - 21,503,166 (21,503,166) 530,025 31,649,261 23,074,557 8,574,704 Budgetary Fund Balance, June 30 $ 27,540,786 $ (3,578,440) $ $ 3,578,440 131 CITY OF LA OUINTA BUDGETARY COMPARISON SCHEDULE REDEVLOPMENT AGENCY PA NO.2 - CAPITAL PROJECT YEAR ENDED JUNE 30, 2012 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 Extraordinary gain/(loss) on dissolution of redevelopment agency Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 4,569,785 $ 4,569,785 $ 4,569,785 $ 76,802 54,632 (22,170) 1,650,000 1,650,000 (1,650,000) 6,219,785 6,296,587 4,624,417 (1,672,170) 162,232 1,691,437 132,230 1,559,207 247,000 4,219,890 288,212 3,931,678 4.203,975 (4,203,975) 409,232 5,911,327 4,624,417 1,286,910 Budgetary Fund Balance, June 30 $ 5,810,553 $ 385,260 E $ (385,260) 132 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY PA NO. 1 - DEBT SERVICE YEAR ENDED JUNE 30, 2012 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Community development 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 $ 745,343 $ 745.343 Variance with Final Budget Actual Positive Amounts (Negative) $ 745,343 $ 5,486,445 15,084,976 16,505,087 1,420,111 3,000 3,000 (13,122) (16,122) 6,234,788 15,833,319 17,237, 308 1,403,989 411,600 429,212 428,522 690 4,374,077 3,947,652 3,947,652 6,724,310 6,675,388 3,386,073 3,289,315 19,377,273 9,150,705 8,986.409 164,296 10.011,098 13,976,264 488,652 13,487,612 40,898,358 34,179,221 17,237,308 16,941,913 $ (34,663,570) $ (18,345,902) $ $ 18,345,902 133 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY PA NO.2 - DEBT SERVICE YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 560,200 $ 560,200 $ 560,200 $ Resources (Inflows): Taxes 19,201,924 9,365,929 9,365,929 Use of money and property 200 200 (15,571) (15,771) Transfers in 2,468,152 558,747 - (558,747) Amounts Available for Appropriation 22,230,476 10,485,076 9,910,558 (574,518) Charges to Appropriation (Outflow): Community development 255,100 246,068 241,543 4,525 Debt service: Principal retirement 130,000 380,000 380,006 Interest and fiscal charges 633,843 633,843 252,757 381,086 Pass -through agreement payments 16,387,298 8,215,043 7,769,032 446,011 Transfers out 4,118,152 2,205,178 - 2,205,178 Extraordinary gain/(loss) on dissolution of redevelopment agency 1.267,226 (1,267,226) Total Charges to Appropriations 21,524,393 11,680,132 9,910,558 1,769,574 Budgetary Fund Balance, June 30 $ 706,083 $ (1.195,056) $ $ 1,195,056 134 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FINANCING AUTHORITY YEAR ENDED JUNE 30, 2012 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 Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,695,883 $ 2,695,883 $ 2,695,883 $ 11,600 11,600 9,107 (2,493) 673,521 673,521 674,859 1,338 7,479,250 - - 10,860,254 3,381,004 3,379,849 (1,155) 11,600 11,600 8,075 3,525 3,824,531 3,824,531 445,000 3,379,531 4,328,240 4,328,240 228,521 4,099,719 2,695,719 2,695,719 - 8,164,371 10,860,090 3,377,315 7,482,775 $ 2,695,883 $ (7,479,086) S 2,534 ' $ 7,481,620 135 THIS PAGE INTENTIONALLY LEFT BLANK 136 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: Eauioment Replacement Fund — used to account for the ultimate replacement of City owned and operated vehicles and equipment Information Technoloov Fund — used to account for the purchase and replacement of information systems. Park Eauioment and Facilities Fund — used to account for the purchase and replacement of City owned park facility Infrastructure. 137 CITY OF LA QUINTA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2012 Governmental Activities - Internal Service Funds Parts Equipment Information Equipment and Replacement Technology Facilities Totals Assets: Current: Cash and investments Receivables: Accrued interest Prepaid costs 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 Accrued compensated absences 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 $ 2,039,419 $ 1,102,164 $ 653,038 $ 3,794,621 653 358 214 1,225 240 240 2,040,072 1,102,762 653,252 3,796,086 761,257 276,052 16,160,638 17,197,947 761,257 276,052 16,160,638 17,197,947 $ 2,801,329 ; 1,378,814 ; 16,813,890 ; 20,994,033 $ 11,264 $ 507 $ $ 11,771 - 3,948 3,948 - 4,078 4,078 11,264 8,533 19,797 - 5,635 5,635 5,635 5,635 11,264 14,168 25,432 761,257 276,052 16,160,638 17,197,947 2,028,808 1,088,594 653,252 3,770,654 2,790,065 1,364,646 16,813,890 20,968,601 Total Liabilities and Net Assets $ 2,801,329 $ 1,378,814 $ 16,813,890 $ 20,994,033 138 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 Governmental Activities - Internal Service Funds Park Equipment Information Equipment and Replacement Technology Facilities Totals ' Operating Revenues: Sales and service charges $ 600,588 $ 485,522 $ $ 1,086,110 Miscellaneous 29,663 - 29,553 Total Operating Revenues 630,141 485,522 1,115,663 Operating Expenses: Salaries and benefits - 113,729 113,729 Fuel and oil 91,233 - 91,233 Maintenance and parts 74,179 - 74,179 Contract services 16,242 34,622 42,310 93,174 Software and supplies - 105,841 - 105,841 Depreciation expense 176,647 97,821 529,952 804,420 Other 8,934 8,934 Total Operating Expenses 358,301 360,947 572,262 1,291,510 Operating Income (Loss). 271,840 124,575 (572,262) (175,847). Nonoperating Revenues (Expenses): Interest revenue 5,886 3,272 1,579 10,737 Gain (loss) on disposal of capital assets 3,434 - 3,434 Total Nonoperating Revenues (Expenses) 9,320 3,272 1,579 14,171 Income (Loss) Before Contributions 281,160 127,847 (570,683) (161,676) and Transfers Capital contributions - 937,163 937,163 Transfers in 25,368 - 25,368 Changes in Net Assets 306,528 127,847 366,480 800,855 Net Assets: Beginning of Year 2,483,537 1,236,799 16,447,410 20,167,746 End of Fiscal Year $ 2,790,065 $ 1,364,646 $ 16,813,890 $ 20;968,601 139 CITY OF LA QUINTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2012 Governmental Activities - Internal Service Funds Park Equipment Information Equipment Replacement Technology and Facilities Totals Cash Flows from Operating Activities: Cash received from customers and users $ 630,141 $ 485,282 $ - $ 1,115,423 Cash paid to suppliers for goods and services (230,464) (161,733) (49.279) (441,476) Cash paid to employees for services (113,337) (113,337) Net Cash Provided (Used) by Operating Activities 399,677 210,212 (49,279) 560,610 Cash Flows from Non -Capital Financing Activities: Cash transfers in 25,368 25,368 Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Proceeds from sales of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents , Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in compensated absences Total Adjustments Net Cash Provided (Used) by Operating Activities 25,368 25,368 (7,530) (29,693) (37,223) 3,434 3,434 (4,096) (29,693) (33,789) 6,384 3,581 1,862 11,827 6,394 3,581 1,862 11,827 427,333 184,100 (47,417) 564,016 1,612,086 918,064 700,455 3,230,605 $ 2,039,419 $1,102,164 $ 653,038 $ 3,794,621 $. 271,840 $ 124,675 $ (572,262) $ (175,847) Non -Cash Investing, Capital, and Financing Activities: Capital assets contributed by other funds $ 176,647 97,821 - (240) (48,810) (12,336) 94 298 529,952 804,420 - (240) (6,969) (68,115) 94 298 127,837 85,637 522,983 736,457 399,677 $ 210,212 $ (49,279) $ 560,610 - $ - $ 937,163 $ 937,163 140 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 Quints has the following agency funds: Assessment District No. 97-1 and 2001-1 — To account for assessments paid to the City for debt service payments on bond Issues used to finance sewer improvements. 141 CITY OF LA QUINTA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Assessment Assessment District No. District No. 97-1 2001-1 Totals $ 128,183 $ 422,049 $ . 550,232 - 9,041 9,041 39 125 164 $ 128,222 S 431,215 $ 559,437 $ 128,222 $ 431,215 $ 559,437 $ 128,222 $ 431,215 $ 559,437 142 CITY OF LA QUINTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2012 Assessment District No. 97-1 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Assessment District No. 2001.1 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Depos0s payable Total Liabilities Totals - All Agency Funds Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Balance Balance 71112011 Additions Deductions 6/30/2012 $ 135,326 $ 63,267 $ 70,410 $ 128.183 1,210 - 1,210 - 92 39 92 39 38,8 8 63,30 71, 12 12 , 22 $ 136,628 $ 61,944 $ 70,350 $ 128,222 $ 136,628 $ 61,944 $ 70,350 $ 128,222 $ 385,866 $ 244,640 $ 208,457 $ 422,049 12,153 9,041 12,153 9,041 262 125 262 125 98,2 808 220,872 $ 398,281 $ 241,615 $ 208,681 $ 431,215 $ 398,281 $ 241,615 $ 208,881 $ 431,215 $ 521,192 $ 307,907 $ 278,867 $ 550,232 13,363 9,041 13,363 9,041 354 164 354 164 $ 534,808 $ 317,112 $ 292,584 $ 559,437 $ 534,909 $ 303,559 $ 279,031 $ 559,437 $ 534,909 $ 303,559 $ 279,031 E 559,437 143 THIS PAGE INTENTIONALLY LEFT BLANK 144 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. 146 Revenue Capacity These schedules obtain information to help the reader assess the government's most significant local revenue source, the property tax. 158 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. 164 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. 171 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. 174 IEP CITY OF LA QUINTA Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 Governmental activities: Invested in capital assets, net of related, debt $ 225,818,022 $ 249,059,500 $ 233,361,129 $ 253,559,117 $ 300,220,033 Restricted 40,038,313 44,415,966 43,421,857 65,159,623 49,277,895 . Unrestricted 48,290.000 45,169.328 60.361.071 86.129.376 106.939.577 Total governmental activities net assets $ 314,146,335 $ 338,644,794 $ 337,144,057 $ 404,848,116 $ 456;437,505 Business -type activities: Invested in capital assets, net of related debt $ - $ - $ 41,300,846 $ 42,075,172 $ 42,692,025 Restricted - - - - - Unrestricted (626,658) (1,665,646) (2,385,462) Total business -type activities net assets $ - $ - $ 40,674,188 $ 40,409,526 $ 40,306,563 Primary government: Invested in capital assets, net of related debt $ 225,818,022 $ 249,059,500 $ 274,661,975 $ 295,634,289 $ 342.912,058 Restricted 40,038,313 44,415,966 43,421,857 65,159,623 49,277,895 .Unrestricted 48,290,000 45,169,328. 59,734,413 84,463,730 104,554,115 Total primary government net assets $ 314,146,335 $ 338,644,794 $ 377,818,245 $ 445,257,642 $ 496,744,068 Source: City of La Quinta 146 TABLE 1 2008 _ 2009 2010 - 2011 2012 - $ 343.019,328 $ 323,669,955 $ 336.459,272 $ 276,787,752 $ 534,388,479 _ 86.041,189 105,297,168 96,332,870 107,042,126 26,585.382 79,642,102 96,654,981 . 77,187,433 97,009,428 89,832,811 $508,702,619 $ 525,622,104 $ 509,979,575 $ 480,839,306 $ 650,806,672 • $ 42,778,015 $ 42,536,608 $ 42,879,482 $ 42,491,051 $ 42,105,683 (3,109,524) (3,937,454) (4,863,848) (4,918,951) (4,745,892) $ 39,668,491 $ 38,599,154 $ 38,015,634 $ $7,572,100 $ 37,359,791 $ 385,797.343 $ 366,206,563 $ 379,338,754 $ 319,278,803 $ 576,494,162 _ 86,041,189 105,297,168 96,332,870 107,042,126 -26,585,382 76,532,578 92,717,527 72,323,585 92,090,477 85,086,919 $ 548,371,110 $ 564,221,258 $ 547,995,209 $ 518,411,406 $ 688,166,463 147 CITY OF LA OUINTA Chaps in Net Assets Last Ten Fiscal Yeas (accrual Basis ol aaouwing) 2003 2004 2005 2006 2007 Fvenses: Go ftiawel activities: General government $ 3,203,462 $ 4,319,778 $ 3,595,906 $ 4,229,871 $ 6.284,342 Public safety 8,547,005 10,256,463 8,512,875 9.065,244 12,724,100 Cormuwty savioes 1,321,625 1,446,999 1.157,141 1,426,033 4,299453 Planning and development 19,083,860 7,526,977 6.752.239 5,906,915 7,736.520 Publicworks - 6,785,759 6.M.013 9,101,582 10A06335 10,511.874 Contribution to other agendas; Interest on long-term dear 8.655.401 9,6%.R9 15,265,051 15,494,656 15,163,422 Total governmental activities expenses 47,497,312 39,212,009 43,384,794 4B.M.054 66,719,711 Businessrype activities: Golf Corse 1,8A,291 4,523,146 4,520,173 Total businessdype acGvaies experwea 1,877,291 4,523, 146 4,520,173 Total primary govemnent expenses 47,497,312 39,212,009 45,262,085 50.652.200 61,239,11M Program revenues: GOVBInnenaal activities: Charges for servicat: German govemrteM 298,749 337,376 445,663 717,849 60,530 Public safely 2,917.11W 4,004,621 4,438.115 _4,168,206 2,659,515 Planning aw Cemicipmsnt 611,278 682,737 754,938 1,873,676 169,643 Community services 205,806 252,677 252,501 428,947 387,(M Public works 1.594,225 1,813,983 2.815,703 3,021,379 2,244,156 Operating glares and contributions 1,797.031 1.799.503 1,9m.578 3,603,173 3,799,495 Capital glans and caMbutions 5,18O405 12,M.143 18,691,423 33,918,901 17,601,131 Told govemmonlel activities propan revenues 12,585.360 20,961,050. 29,233,921 47,732,131 26.918,535 susiness-typeaLtlNees. Charges for services:.. Golf Course - - 1,091,836 3,120.728 3,640,748 Capital prawn and conbibutiom - Total businesarype activities program rewnuas - 1,091,836 3,120,728 3,540,748 Told Primary government program revenues 12,588360 20,981,050 30,325,757 50,852,859 36459,283 (mntinuad) (continued) (continued) (continued) (contineE) Net revenues (expenses): Gowmmewal activities (34,911,952) ('18,250,969) (14,150,873) 1,603,077 (29801,176) 8usineas-type activities _ (785,465) (1,402,4181 (09,425) Told net revenues(apenses) (34911,952) (18,250,9591 (14,936,3281 200,659 (30,780,6011 General revenues and other changes in net aseals: Govemmenld activities: Tams: Prcyerty taxes 1.800,616 2,198,141 2,679,245 3,679,W9 4.999,051 Tax incranent 21,191,11M 24,450,337 24.443,112 38168,329 42,583,031 Sales tax 4,345,381 5.240.037 6,773,566 7,613,075 0,896.716 Transient omipancy been; 4.036,290 4.261.767 4,831,338 6,437,238 5,448,361 Frantlliae taxes 690,544 895.810 1.185.087 1,W.470 1,259,985 Business license taxes 186.220 191.062 251,618 278.917 307.032 Other tams - 513,934 675.996 1,141,177 1,049.701 872,753 1rn 1nalll in come 1,353,868 1.738,505 4,336,050 6.319,502 11,854,951 Molory cis In lieu, unrestricted 1,768,091 1,608,151 2,453.642 2,740.233 3.291,055 Gain (loes) on sale of capital assals - - 3,717,470 1,967,292 - Miseellaneous 513,878 1,489,612 2.397.474 1,943,093 2,052,245 Extraordinary gaiMoss on dissolution of RDA - - - - Tra sfe s (41,459.643) + (1,137,203) (874,545) Total governmental activities 36,400,652 42,749,418 f2650,136 66,101,726 eg690.538 Budressiype activities: Inveslmernt inWrrne - - - 553 1,817 Gain Voss) on sale of capital assets - - - - Transfere 41,459,643 + 1,137203 874,645 Total business -type activities 41,459.643 1,137,756 876.462 Total pdmary government 36,400,652 42,749,418 64,109,779- 67,239,482 81,566,998 Changes in net assets Governmental activities 1,488.700 24,498.459 (1,609737) 67,704,803 50,889,380 @rsiness-type activities - 40,674,188 (264,662) (1M,963) Total pill government $ 1,488,700 $ 24,Qli,459 39173451 $ 67,440,141 $ 5g7B6.397 The bansforwas for la d a gob coures improvemanfs aansfenea to tM EnWrpdm Fund Source: Cityof La OWwa 148 TABLE 2 2008 ZOW 2010 2011 2012 S- 6,953,073 S 7.836,146 $ 34,287.068 S .11,283.358 S 6.183.712 13.472,036, 19,735,941 21.274.519 21,070458 20,815,454 6,797,116 14,WB,BW 15.923,30D 4,735,964 6.093.402 35,3230% 7AI7,6W 5,173,326 18,715.283 6,378,352 11,097,5M 11,100,833 12.326,725 10,767.279 13288.521 31,324.054 16,522,441 15,631,438 15,330,603 14,353,359 3,021,496 W,168,050 76,431,897 104,315,622 112,239,785 54,780,937 4,761,581 4,440,546 4,109,768 i.. 4202,274 4,086,282 4.761,581 4,440,545 4,169,768 4,202274 _ 4,085282 92,927,631 808M.443 100.485.380 116,442,039 50,888,219 8,328 25,053 21,439.. 47,896 86.869 2,06D,492 1,373,952 1.100.491 1,044,399 :, 1.020.8M 134,211 138,391 69,391 74,471 68.470 374.092 275.178 250,557 210.161 247.397 1,900.437 ` 1.3W,702 1,124.647 1.095,771 1,090.744 5.905,654 ' 10,725,280 15.3538W 13,152.942 11,289,673 50.090419 10,647270 6,974,311 3.157.828 9,990,793 80463.843 24,493,828 23,904,405 18,774258 23,784,768 3.814233 3,388,135 3,684,90 3,758,616 3,871,8M 352,687 4,166,920 3,308.135 3584.998 3,756,615 3,871,898 64.63D.563 27861,961 27.489,482 22,530,873 27.6W,866 :(OorlUm d) (.oft d) (mnlinue8), (.-8n.5) (con9nuem (27,702,4D7) (51.938,071) (68411,136) (93,465,507) (30,M.169) (594,051) (1,072,411) (684,772) (443659) (213,384) (28,207,0881 (53010482) MAN, 9081 (93,911.166) (31.20B,5531 6,014.305 8,653,583 6273470 5,942.353 21,370,476 42,114,893 36.702,197 35,390,317 32,659,795 - ,. 8,492213 7279,513 8,927.388 7,323.836 7,713,741 5,327.203 4A0467 4,265,438 .., 4.737.908 5,446,883 1,748,082 IAM.249 1,585,427 1A07,829 1,687,440 317,011 285.304 302,223 285.270 293.592 641,705 455,089 - 461.957 437,235 428,983 10,230.489 - 7.397.244 5,352,684, 4,693,974 1,926.265 3,803.647 3,940,801 3,714,437 3,515,395 3,173,626 57,348 21,642 2,330 - - 1,220,627 110,567 4".9W 3,211,5M 208,644 - - - - 158,BSg715 78.987.521 88857,SW 81.788.W7 64.325,238 20D.989.W5 4.310 3.074 1,252 2,126 1,D76 (47,721) - - - (13,411I 3,074 7,252 2.125 1,075 79,924.1t0 688W.830 64.760.8% 6027,3M 200,964,610 52,265.114 16.019.485 (15.642,529) (29.140259) . 169,957.386 1638.0721 (7,069,337) (583,5201 (443,534) (212.3091 3 51,027,042 S 16,850,148 S. (16,226,0491 S (29,583,8M $ 169,755,057 U9 CITY OF LA QUINTA Changes in Net Assets - Governmental Activities Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 - Expenses: - General government $ 3,203,462 $ 4,319,778 $ 3,595,906 $ 4,229,871 $ 6,284,342 Public safety 8,547,005 10,256,463 8,512,875 9,066,244 12,724,100 Community services 1,321,825 1,446,999 1,157,141 1,426,033 4,299,453 . Planning and development 19,083,860 7,526,977 5,752,239 5,906,915 7,736,520 Public works 6,785,759 6,003,013 9,101,582 10,006,335 10,511,874 Contribution to other agencies - - - - - Interest on long-term debt 8,555,401 9,658,779 15,265,051 15,494,656 15,163,422 Total governmental activities expenses 47,497,312 39,212,009 43,384,794 46,129,064 56,719,711 Program revenues: Charges for services: General government 298,749 337,376 445,663 717,849 - - 60,530 Public safety 2,917,866 4,004,621 4,438,115 4,168,206 2,659,515 Community services 205,806 252,677 252,501 428,947 387,065 Planning and development 611.278 662,737 754,938 1,873,676 169,643 Public works 1,594,225 1,813,993 2,815,703 3,021,379 2,244,156 Operating grants and contributions 1,797,031 1,799,503 1,935,578 3,603,173 3,796,495 Capital grants and contributions 5,160,405 12,090,143 18,591,423 33,918,901 17,601,131 Total governmental activities program revenues 12,585,360 20,961,050 29,233,921 47,732,131 26,918,535 Net program revenues (expenses) (34,911,962) (18,250,959) (14,150,873) 1,603,077 (29,801,176) General revenues and other changes in net assets: Taxes: Property taxes 1,800,616 2,198,141 2,579,245 3,679,079 4,999,051 Tax increment 21,191,832 24,450,337 24,443,112 35,168,329 42,583,031 Sales tax 4,345,381 5,240,037 6,773,566 7,613,075 8,896,716 Transient occupancy taxes 4,036,290 4,261,767 4,831,338 5,437,238 5,448,361 Franchise tax 690,544 895,810 1,185,087 1,044,470 1,259,985 Business license taxes 186,220 191,062 251,618 276,917 307,032 Othertax 513,934 675,996 1,141,177 1049701 872,753 Motor vehicle in lieu, unrestricted 1,768,091 1,608,151 2,453,642 2740233 3,291,055 Investment income 1,353,868 1,738,505 4,336,050 6319502 11,854,951. Gain (loss) on sale of capital assets - - 3,717,470 1967292 - Miscellaneous 613,876 1,489,612 2,397,474 1943093 2,052,246 Extraordinary gainAoss on dissolution of RDA - - - 0 - Transfers (41,459,643) (1,137,203) (874,645) Total governmental activities 36,400,652 42,749,418 12,650,136 66,101,726 80,690,536 Changes in net assets - governmental activities $ 1,488,700 $ 24,498,459 $ (1,500,737) $ 67,704,803 $ 50,889,360 Source: City of La Quints 150 Table 3 2008 2009 2010 7911 $ 6,953,073 $ 7,836.146 $ 34,287.068 $ 11,283,358 13,472,036 19,736,941 21,274,519 ., 21,070,458 5,797.116 14,808,850 15,923,380 4,735,964 35.323,858 7,317,689 5,173.326 18,715,283 11,097,526 11,100,833 12,326,726 10,757,279 - - - 31,324,064 15,522441 15,631,438 15,330,603 14,353,359 88,166,050 76,431,897 104,315,622 112,239,765 8,328 26,053 21,439 47,696 2,050,492 1,373,952 1.100,491 1,044,399 374,092 275,178 250,557 210,151 134,211 138,391 69,391 74,471 1,900.437 1,308,702 1,124,647 1,086,771 5,905.664 10,725.280 15,363,650 13.152,942 50,090,419 10,647.270 5,974,311 3,157,828 60,463,643 24,493,826 23,904,486 18,774,258 (27,702,407) (51,938,071) (80,411,136) (93,465,507) 6,014,305 6,653,583 6,278.470 42,114,893 36.702,197 35,390,317 8.492,213 7,279,513 6,927,38E 5.327,203 4.480,467 4,265,43E 1, 748, 082 1,533,249 1,665,427 317,011 285,304 302,223 641.705 455,089 461,957 3,803,647 3,940,801 3.714,437 10,230,489 7,387,244 5.362,684 57,346 21,542 2,330 1.220,627 118,567 477,936 79,867,521 68,857,55E 64,768,607 5,942,353 32,569.795 7,323,835 4,737,968 1.607,829 285,270 437,235 3,515,395 4,693,974 3,211,554 2012 $ 6,183,712 20,815,454 5,093,402 6,378,352 13,288,621 3.021.496 54,780,937 86,869 1.020,822 247,397 68,470 1,080,744 11,289,673 9,990,793 23.784.768 (30,996.169) 21,370,476 7,713,741 5,446,883 1,687,440 293,592 428,963 3,173,826 1,925,255 268,644 158,654,715 $ 52,265,114 $ 16.919,485 $ (15,642,529) $ (29,140.269) $ 169,967.366 151 CITY OF LA QUINTA Changes in Net Assets - Buslnese-type Activities Last Eight Fiscal Years (=met basis of accounting) TABLE 4 Fiscal Year 2005 2M 2w 20OB-M Expenses: Golf Course 1,877,291 2 4,523.146 4,520,173 4,761,581 4,440,546 4,169,768 4,202,274 4,085,282 Total business -type activities expens . 77, 4 ,5�2 ,{ 3 6 , 4,20 , 4SF�, Program revenues: Charges for services: Gdf Course 1,091,836 2 3,120,728 3,540,748 3,814,233 3,368,135 3,584,996 3,756.615 3,871,898 Capital grants and contributions 352,687 Total business -type activities program revenues 1,091,836 3,120,728 3,540,748 4,166,920 3,368.135 3,584,996 3,756,615 3,871,898 Net revenues (expenses) 785, 55 02, 9 5 ,072, ,772 �,J General revenues and other changes In net assets: Investment irxxxne - 563 1,817 4,310 3,074 1,252 2.125 1,075 Gain (loss) on sale d capital ease - - - (47,721) - - - - Trarefers 164,190 874,645 - - - - - CapitaloorrMbutions 41,459,643 973,013 979,426 - - - - Total business -type activities 19 16W �'T5%%w _r668� —d ,dfij � , 5 2, i ---T.Wr Charges in not assets - business -type 40,674,188 (264,662) 876,462 (638,072) 1069 337 (583,520) (443,534) 21( 2,309) activities Me City gfLa Quwa implemented the bmmm type aclivider in FY 20042005. ' The transfer was for land 8 golf coupe Improvements transferred to the Enterprise Fund. 2 This was the first full year of operations for the Golf Course Source: City of La Quinte 152 THIS PAGE INTENTIONALLY LEFT BLANK 153 General fund: Nonspendable: Prepaid costs Land held for resale Notes and loans Advances to other funds Deposits Restricted for: Debt service Committed: Emergency reserve Post retirement health benefits Capital Projects Educational purposes Library Economic development Assigned: Continuing appropriations Unassigned: Total general fund All other governmental funds: Nonspendable: Prepaid costs Land held for resale Notes and loans Advances to other funds Deposits Restricted: Planning and development projects Public safety Community services Public works Capital Projects Debt service Assigned: Continuing appropriations Unassigned: Total all other governmental funds CITY OF LA QUINTA Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 20 3 2004 2005 2006- 2007 $ 17,515 $ 292,816 $ 507,931 $ 503.642 $ 11,774 21,081,322 28.671,083 31,904,659 22,700,961 27,597,329 1,073 246,858 5,903 10,523,200 11,915,000 15,067,577 16,905.386 18,722,524 - 589,875 10,877,058 482,718 - 1,000,000 750,000 500,000 - 11,981 - - - - 467,072 4,967,072 2,327,430 1,069,667 1,319,787 2,257,200 16,061,573 13,579,479 13,308,205 18,239,315 32,741,545 47,684,683 $ 54,705,236 $ 63,926,967 $ 76,269,124 $ 84,640,520 $ - $ - $ - $ 7,987 $ 7,977 2,117,586 2,123,425 2,117,873 2,112,597 2,081,645 3,811,874 5,336,158 7,061,027 5,365,097 4.823,543 185,000 - 1,110 - - 7,903,406 7,518,862 16,144,465 .26,172,191 15,297,481 40,208 8,413 154,115 143,846 153,818 996,814 1,359,723 2,889,245 9,696,885 12,214,375 374,700 409,534 256,881 462,171 104,878 50,673,421 124,658,452 99,186,105 92,112,917 66,225,066 2,273,588 4,093,123 4,605.101 10,288,494 24,309,220 (10,403,485) (20,244,236) (18,801,305) (7,133,230) (7,854,868) $ 57,973,112 $125,263,454 $113,614,617 $ 139,228,955 $117,363,135 The increase was primarily the result of the issuance of the 2004 Financing Authority bonds. In Fiscal Year 2009-2010, the City implemented GASB 54 which changed the reporting requirements for fund balances in the financial statements. This table has been updated to reflect the impact of GASB 54 not only for Fiscal Year 2009-10 but for all prior years. The increase was primarily the result of the issuance of the 2011 Financing Authority bonds. Source: City of La Quinta 154 TABLE 5 2008 2009 2010 2011 2012 $ 10,601 $ 12,424 $ 9,030 $ 23,260 $ 27,481 - - 8,320,000 8,320,000 45,264,966 46.137,692 57,897,671 15,373,104 15,417,929 4,825 9,830 9,830 9,967 118,516 - - - 169,631 173,426 19.651,824 18,201,948 17,774,648 18,018,595 17,516,295 1,258,059 1,258,059 1,523,401 2,100,000 2,144,065 250,000 - 1,911,131 - - - - 2,835,297 3,485,747 1,555,176 1,768,494 1,657,694 20,423,375 22,335,655 13,526,704 48,140,444 47,121,339 $ 92,452;019 $ 92,327,381 $ 92,030;118 $ 93,081,554 $ 91,876,081 $ 5,353 $ 19,197 $ 7,740 $ 10,563 $ - 2,076,063 2,067,028 2,088,709 2,081,614 2,065,611 4,402,213 4,321,119 4,293,166 4,569,188 - - 4,540 6,400 6,000 - 21,906,749 25,807,752 31,032,124 34,016,930 2.724,240 198,843 245,468 1 48,852 96,364 245,187 11;406,628 11,387,631 11,675,417 10,248,314 11,162,057 309,566 7,539,181 448,731 396,355 145,823 69,626.275 50,556,856 53,123,856 58,111,106 3 4,089,166 5,094,635 5,490,098 3,690 4,001,426 2,534 2,000 - - - (19,653,179) (19,339,823) (33,626,907) (13,250,398) (5,988,442) $ 95,373,146 $ 88,101,047 $ 69,101,978 $ 100,289,462 $ 14,446,166 155 CITY OF LA QUINTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year _ 2003 2004 2005 2006 2007 Revenues: Taxes _ $ 50,326,811 $ 58,301,082 $ 68.175,347 $ 89,704,947 $ 100,103,324 Assessments 780,259 B16,045 825,292 818,526 877,191 Licenses and permits 1,982.127 3,096,145 3,226,167 5,145,430 2,788,882 Intergovernmental -7,194,521 11,858,627 10.242,876 18.585,468 14,803,971 Charges for services 2,302,759 2,619,578 3.402,602 3,367,989 1,821,794 Use of money and property 4,463,219 4,854,728 9,798,356 12,671,662 14,804,348 Contributions - - - - - Developer participation - 3,021,245 5,718,073 6,091,156 12,473,440 5,310,440 Miscellaneous 483,777 1,359,539 528,903 637,054 412,353 Total revenues 70,554.718 88,623,817 102,290,699 143,404,516 140,922,303 Expenditures Current: General government 3,344,407 4,099,376 3,970,921 4,644,954 6,150,699 Public safety 8,344,428 9,672,708 12,364,583 13,029,187 15,685,493 Planning and development 7,804,294 7,480,421 5,719,373 5,847,563 28,994,177 Community services 993,964 1,025,397 1,104,509 1,248,308 4,027,302 Public works 3,685,050 4,536,589 6,206,769 6,987,014 6,755,507 Capital projects 16,057,578 43,331.919 40,012,387 25,445,550 36,420,417 Debt service: Principal retirement 2,931,952 3,610,538 3,793,660 4,777,748 5,647,940 Interest and fiscal charges 9,469,314 13,961.721 14,355,577 15.554,612 15,059,977 Payment to bond escrow - 1,591,107 - - - Payments under pass4hrough obligations 17,561,994 21,448,147 25,756,321 35,958,291 36,498,575 Total expenditures 70,192,981 110,757,923 113,284,100 113,493,227 155,240,087 Excess (deficiency) of revenues over (under) expenditures 361,737 (22,134,106) (10,993.401) 29,911,289 (14,317,784) Other financing sources (uses): Issuance of tax allocation bonds 26,400,000 - - - - Issuance of revenue bonds - 90,000,000 - - - Payment to bond escrow - (19,955,000) - - - Transfers in 23,887,256 154,613,662 49,248,081 35,828,335 60,954,576 Transfers out (23,887,256) (154,613,662) (49,248,081) (35,992,525) (60,954,576) Other debts issued - - - - Capital leases - - - - - Proceeds from sale of capital assets - - 8,566,295 8,209,396 124,097 Total other financing sources (uses) - 96,445,000 8,566,295 8,045,206 124,097 Extraordinary gainfloss on dissolu8on of redevelopment agency - - - Net change in fund balances $ 361,737 $ 74,310,894 $ (2,427,106) $ 37,956,495 $ (14,193,687) Debt service as a percentage of noncapital expenditures 43.5% 57.9% 62.0% 65.5% 61.0% Source: City of La Quinta 156 TABLE 6 2008 2009 2010 - 2011 2012 $ 105,870,933 $ 99,816,072 $ 93,831,918 $ 88,498,457 $ 53,632,023 909,229 927,816 966,639 958,048 950,292 2,107,035 871,167 472,409 547,071 482,831 15,382,135 18,679,355 19,473,076. 19,005,643 15.875.582 1,334,060 673,779 484,043 501.418 635,111 12,874,926 7,043,646 5,338,679 4,670.732 1,914,518 37,643,190 240,591 395,823 327,761 303,773 6,537,991 2.243,785 273,739 945,805 - 903,144 629,471 720,185 608,342 319,763 - 276,327 183,288,970 131,216,396 121,844,668 115,772,688 74.973,601 7,367,144 7,230,436 30,220,882 10.885,519 4,881,922 17,181,775 18,946.866 20,116,936 19,826,372 19.669,517 15,374,160 7,261,835 6,028.492 8,460,420 4,31446 5,336,757 4,698,985 4,204,626 4,147,758 4,086,686 _ 6,563,494 6,324,055 6,862,887 4,808,060 6,192.733 82,883,317 32,363,859 '14.514,910 21,287,775 13.335,989 5,949,311 6,319,580 6,616,412 7,011,261 7,066,726 15,424.708 15,348,598 15,357,968 15,037,919 6,701,079 42,989,023 42,426,670 38,710,894 35,607,089 16,755,441 ' 199,069,689 140,920,884 142,634,007 127,072,173 83.004,739 (15,780.719) (9,704,488) (20,789,339) (11,299,485) (8,031,138) - - - 6,000,000 - - - - 28,850,000 - 88,604,682 40,502,929 30,386,372 61,657,034 12,554,752 (87,342,608) (40,527,930) (28,893,365) - (61,652,479), (12.580,120) - 2,332,752 - - - 182,094 - 158,061 - - 8,683,850 876,275 1,602,229 . 2.307,751 1,493,007 43,538,405 849,907 (79,058,255) $ (14,178,490) $ (7,396,737) $ (19,296,332) $ 32,238,920 $ (86,239,486) 47.1% 59.0% 47.6% 53.0% 43.8% 157 CITY OF LA QUINTA TABLE 7 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30 Entire City Secured (including Redevelopment Agency) Less: Unsecured Exemptions Taxable Assessed Value Direct Rate 2003 $ 3,789,678,041 $ 32,607,713 $ (54,726.303) $ 3,767,559.451 0.83181 2004 5.412,382,710 40,940,877 (95,420,075) 5,357,903,512 0.83002 2005 6,289,493,552 44,014,548 (113,037,003) 6,220,471,097 0.80909 2006 7,856,383,375 72,554,357 (115,071,146) 7,813,866,586 0.77208 2007 9,986,151,525 88,740,840 (99,245,721) 9,975,646,644 0.73007 2008 11,854,669.637 101,433,002 (89,688,505) 11,866,414,134 0.68950 2009 12,410,626,893 113,185,065 (107,777,195) 12,416,034,763 0.67747 2010 11,742,665,902 121,272,880 (110.752,890) 11,753,185,892 0.66997 2011 10.913,083,169 118,972,704 (161,265,140) 10,870,790,733 0.67058 2012 10,400,897,792 107,421,771 (176,887,605) 10,331,431,958 0.67169 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 158 CITY OF LA QUINTA TABLE 8 Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency Last Seven Fiscal Years (in dollars) Redevelopment Agency Project Area 1 Fiscal Year Taxable Ended Less: Assessed Base Taxable June 30 Secured Unsecured Exemptions Value Year Increment 2006 $ 3,962,433.928 $ 29,248.534 $ (35,653,495) $ 3,956,028,967 $ 199,398,233 $.3,756,630,734 2007 4,789,836,901 34,084,343 (36,081,051) 4,787,840,193 199,398,233 4,588,441,960 2008 5,223,508,114 34,250,061 (36.913,604) 5,220,845,171 199,398,233 5,021,446,938 2009 5,259,271,091 31,678.492 (36,844,457) 5,254,105,126 199,398,233 5,054,706,893 2010 4,925,639,242 36,169,030 (36,077,902) 4,925,730,370 199,398.233 4,726,332,137 2011 4,527,126,186 35,335,685 (35,822,516) 4,626.639,355 199,398,233 4,327,241,122 2012 4,261,084,382 31,435,346 (35,246,900) 4,257,272,828 199,398,233 4,057,874,595 Redevelopment Agency Project Area 2 Fiscal Year Taxable Ended Less: Assessed Base Taxable June 30 Secured Unsecured Exemptions Value Year Increment 2006 $ 2,132,426,502 $ 32,999,788 $ (54,125,422) $ 2,111,300,868 $ 95,182,755., $ 2.016,118,113 2007 2.434,082,787 42,914,862 (53,144,959) 2,423,852,690 95,182,755 2,328,669,935 2008 2,764,306,278 50,616,017 (40,774,044) 2,774,148,251 95,182,765 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 2011 2,522,266,207 60,448,173 (110,797,044) 2,471,917,336 95,182,755 2,376,734,581 2012 2,467,196,690 59,615,560 (127,142,123) 2.399,670,127 95,182,755 2,304,487,372 Source: County of Riverside Auditor -Controller Note: The information was first presented in Fiscal Year 2006. 159 CRY OF LA OUINTA Direct and Overlapping Properly Tax Raba (Rate per $100 or assessed value) Laat S. Fiscal Y. City Redevslopnsnl Nao*"d Ned Protect Mee t 20061 20071 20081 20091 2010t 2011r M12r 20DO3 20073 20DO4 20094 20104 20114 Direct Rates: City of la Ocdnb 0.0760 0.0760 0.0760 0.0506 0.0506 0.0734 0.0760 0.0000, 0.0000 0.0000 0.01W 0.0036 0.0049 Redevelopment agency Project Am l 0.0000 0.0000 0.0000 O.00DO 0.0000 0.0000 0.0000 0.6630 0.5880 0.5150 0.5245 0.5432 0.010 Redwebprerht agency Project Anse 2 0.0000 0.0000 0.0000 0.0000 O.OD00 0.0000 0.0000 0.0000 0.0000 'O.000O 0.00D0 0.0000 O.ODDO County of Risemide 0.1950 0.1950 0.1960 025M 0.2556 02318 0.1957 02M9 0.2619 0.2619 02325 02501 02471 County Free Library r 0.0250 0.0250 0.02M 0.0284 0.0284 0.0286 0.0252 0.0276 O.OV6 0.0276 0.0277 0.0276 0.0282 County Structure Fka Protection 0.0540 0.0540 0.0540 0.0610 0.0610 0.0602 0.0544 0.0595 0.0595 0.0595 0.0595 0.0595 0.0607 Coachella Valley (CV) UmW Sblhool 0.0000 0.0000 0.00D0 0.0000 0.0000 O.ODOO 0,4322 0.0170 0.0150 0.0020 0.0149 0.0167 0.0182 Dined Sands Unified School 0.4320 0.4320 0.4320 0.3765 0.3765 0,3716 0.OD00 0.0160 0.0140 0.0140 0.0695 0.0568 0.0637 Dash Coornnily College 0.0700 0.0700 0.0700 0.0782 0.0782 O.OT72 0.0698 0.0030 0.0030 0.0720 O.O1T7 0.0152 0.0166 Rive ads County Office of Educatlon 0.0380 0.0380 0.0300 0.0426 0.0426 0.0420 0.0380 o.D030 0.0030 0.0180 0.0093 0.0027 0.0038 Riverside County Regional Park B Opan Specs 0.0040 0.0040 O.OD40 O.OD00 o.OD00 0.0000 0.0040 0.0000 0.0000 0.0030 0.0000 0.0000 O.00DD CV Putsic Cenitery, 0.0032 0.D032 0.0032 0.0035 0.0035 0.0035 0.0032 0.0000 0.0000 0.0000 0.0008 0.0002 0.0003 CV Moswib 0.0127 0.0127 0.0127 0.0142 0.0142 0.0141 0.0127 0.0120 0.0120 0.0120 0.0112 0.0111 0.0112 Deaarl Recteat w DlsMct 0.0192 0.6192 0.0192 0.0215 0.0215 0.0213 0.0192 0.0010 0.0020 0.0010 0.00M 0.0014 0.0019 CV Water Distylct 0.0250 0.0250 0.0250 0.0284 0.0284 0.0281 0.0254 0.0130 0.0130 0.0010 0.0127 0.0120 0.0124 CV Resmaos Conwvation 0.0003 0.0003 0.OD03 0.0004 0.0004 0.0004 0.0003 0.0000 0.0000 0.0130 0.0001 0.0000 0.013D0 CVWD Distinct l Debt SeMos 0.0118 0.0118 0.0118 O.OWO 0.0000 0.0131 0.0118 O.ODDO 0.0000 0.0000 0.0000 0.0000 0.0000 CVWO Sloan Water Un0 0.0320 0.0320 0.0320 0.0360 0.0360 0.0355 0.0321 - OA010 0.0010 0.00D0 0.0000 0.0000 O.OD00 Total Mmct Rate 0.9992 0.9992 0.9992 1.0000 1.00W 1.OD00 1.0000 1.00D0 1.0000 1.00D0 1.0000 1.0000 1.00DO Tax Rate Area 020-005 020-005 020-0OS 020005 020-005 020-005 020005 020015 020-015 020-089 020-069 020-089 020-089 O dapping Raba 5: Cityof le Ouinta County of Rivemide Riverside County Office of Education Rhmmide County Pension Obligation Dewed Santis Unified 0,0707 0.0761 0.0799 0,0799 0.0811 0.1004 0.0757 0.0767 0.0761 0.0750 0.0799 0.0811 0,1004 Coachga Valley Unified School District Coachella Valley Water Dismot 0.0442 0.0332 0.0462 0.0464 0.0660 0.0860 0.0862 0.0199 0.0208 0.0484 0.0464 0.0660 0.0860 Coactielb Valley Rec ation 8 Park Distda Desert Conan College District 0.0199 0.0199 0.0199 0.0199 0.0200 0.0200 0.0079 0.0208 0.0199 0.0199 0.0199 0.0200 0.0200 Total Owdspptng Rate 0.1409 0.1293 0.1461 0.1462 OA671 0.2063 0.1696 0.1175 0.1169 OA440 0.1462 0.1671 0.2063 Total Direct and Overlap ang Rate 1.1401 1.1295 1.1453 1.1462 1.1671 1.2063 1.1697' 1.1175 1.1169 1.1440 1.1463 1.1671 1.2063 b 197R Cxnywds vmm Pend Ropniriw I3 which am hhe napery mx non n a I.W%fued ahamcn (m dvm mxm. Thu I.Op%u eDaM by dl m'va eBmrim rawhxR the mbjm pnpvty r<ridm within. Source: Counnof Rivemida Aualor Conwllees Ofica h Direct mb Ran Tax Rate Asa (TRA) 020059 pnmded by Noll Caen 8 Cons and ovedanpbg deft mass Rom Califamie Municipal Statistics v Direct nab taken Roman non -RDA TRA', prodded by the County of Riverside and do rot Include ERAF deductions and ovadapping rates prwided by Caufornb Municipal Statistics e Direct rate taken Dom an analysis by the City of La Quints Finance Depertesnt staff Ball TRAb in Oro Pm)W nee and do not include Slate ERAF deductions and amdappbg Mae prwbed by California Wmapel Statistics e Dimct role takan Rom an analysis of the TRA in Me Project area and do not include Slats ERAF dWucdms and 0vsdapping We prwlded by California Municipal Statistics 5 Ovedappirg rates an band upon a single tax rate area My. Note: The inforrnation ruse final pmsented In Fiscal Year 2006. 160 TABLE 9 Reftmlopro P.Jl Ma t 20124 20003 20073 20084. .2DO94 20103 20114 20124 0.0524 0.0000 0.OD00 0.0000 O.00DO 0.0000 0.0019 0.0499 0.0000 0.0000 0,0000 O.ODDD O.00DO 0.0000 0.0000 0.0000 02M 0.2M 02910 0.3193 0.3174 0.3059 0.0o0O 02583 02617 02617 02617 02516 02537 0.2511 02553 0.0294 0.0200 0.0280 0.0280 0.o280 0.0200 O.D286 0.0280 0.0633 0.0603 0.0603 0.0003 O.050.3 0.0503 0.0616 0.06D2 - 0.0000 0.0000 0.0000 0.0020 0.O 0.0000 0.0000 MOON 0.3905 02WO 0.1980 0.1970 0.1800 0.1859 0,1930 0.3716 0.0812 0.0420 0.0410 0.0010 0.0386 0.0386 0.0e01 0.0772 ' O.W2 0.0230 0.0220 0.0220 0.0210 0.0210 0.0218 0.0020 O.ODDO OA000 O.ODDD O.ODDD 0.0000 0.0000 O.00DO O.OD37 0.60W O.ODDO O.000D 0.0000 O.ODDO O.ODO7 0.0035 0.0148 0.0160 0.0140 0.0140 0.0141 0.0141 0.0141 0.0140 010223 O.ODSO 0.0060 0.0060 0.0053 O.OD53 0.0059 0.0212 0.0295 0.077D 0.0760 0.0760 0.0757 0.0757 0.0740 0.0251 O.ODDe 0.OM 0.0000 0.0000 O.D000 0.OD00 O.ODDO 0.0 O.ODDO O.ODDO 0.0000 0.0000 O.ODDO ODD O.OD05 0.0131 O.ODOo 0.0010 0.0010 0.0010 O.ODDO O.ODDD 0.0014 0.0366 - 1.0DD0 1.00DO 1.0000 1.0000 1.ODDO 1.ODOD 1.Oow 1.ODDo 020089 02D.1u 02(M" 020-144 020-144 02D•1// 020-144 020-144 0.0757 0.0767 0.0761 0.0766 0.0799 0.0811 0.1001' 0.0757 0.0562 O.W2 0.0332 0.0484 0.0464 0.D560 O.OB50 0.0862 O.DD79 0.0199 0.0199 0.0199 0.0199 0.0200 0.0200 0.0079 0.1698 0.1809 0.1293 0.I W 0.1462 0.1671 , 02063 0.1698 1.1698 1.1409 1.1203 1.1440 1.1462 1.1671 12D63 1.1698 , 161 CITY OF LA QUINTA TABLE 10 Principal Property Taxpayers Current Year and Nine Years Ago (in dollars) 2012 2003 Percent of Percentof Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value KSL Desert Resort, Inc E 140,972,125 1 1.30% $ - 223,561,771 1 4.85% TO Desert Development 97,885,896 2 0.90% 23,396,068 3 0.51% MSR Resort Golf Course 55,063,175 3 0.51% East of Madison LLC 43,291,518 4 0.40% . - Inland American La Quints Pavillon 42,548,545 5 0.39% - Coral Option I LLC 42,113,733 6 0.39% - WRM La Quinta 37,973,210 7 0.00% GdfBn Ranch 35,404,218 8 0.33% 13,279,487 10 0.29% Walmart Stores 29,352,870 9 - TO Desert Development LP 25,918,559 10 0.24% 16,452,860 5 0.36% Quarry at La Quinte Inc - 20,310,518 4 0.44% Toll California V 33,241,643 2 0.72% " Monticello COC 15,050,496 6 0.33% Spanos Corporation - - - 15,048,460 7 0.33% M&H Realty Partners II - - 14.824,567 8 0.32% SRHI - - 14.095.924 9 0.31% $ 550,523,849 4.46% $ 389,261,814 8.46% Source: HdL Conan & Cone 162 CITY OF LA QUINTA TABLE 11 Property Tax Levies and Collections Last Seven Fiscal Years ( in dollars) Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended forthe 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 86,721,672 103.32% 1,471,940 88,193,512 105.07% 2010 78,621,410 80.651,874 102.58% 434,643 81,086,617 103.14% 2011 72,735,079 74,047,640 101.80% 269,209 74,306,849 102.16% 2012 73,462,430 38,125,919 51.90% - - 38.125,919 51.90% 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. Effective February 1, 2012, ABlx26 dissolved "the Redevelopment Agencies throughout the State of California which resulted in the reduction of amounts collected during Fiscal Year 2011-12. Note: The infomre6on was first presented in Fiscal Year 2006. Source: County of Riverside Auditor Controller's Office 163 Governmental Activities Reimbursement Agreement Capital lease USDA Loan Provident Savings Loan Due to Coachella Valley Unified School District Due to County of Riverside Developer Agreement Tax Allocation Bonds Project Area 1 Tax Allocation Bonds Project Area 2 2004 Local Agency Revenue Bonds ' 2011 Local Agency Revenue Bonds ' City Hall Lease Revenue Bonds Unamortized Discount and Issuance Costs Total Governmental Business -type Activities Capital Leases Total Business -type activities Total Primary Government Population - State Department of Finance January 1 Number of Households Median Household Income Percentage of Personal Income Debt Per Capita CITY OF LA QUINTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years (in dollars) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended 2003 2004 2005 2006 $ 478,311 $ 428,311 $ 378,311 $ 328,311 7,365,254 6,653,377 5,927,263 5,186,627 2,150,000 2,050,000 1,950,000 1,850,000 684,688 1,010,688 898.141 776,030 134,776,344 142,507,628 140,263,659 141,785,000 10.801,820 6,325,000 6,230,000 6,130,000 87,924,343 87,947,058 89,265,000 7.190,000 6,890,000 6,575,000 - 6,245,000 (877,230) 163,446,417- 253,789,347 250,169,432 250,688,738 801,417 1,090,602 801,417 1,090,602 $ 163,446,417 $ 253,789,347 $ 250,970,849 $ 251,779.340 30,452 32,522 36,145 38,340 14,938 15,942 17,549 18,762 (2) (2) $ (2) $ 65,906 (2) (2) -200.00% 20.36% $ 5,367 $ 7,804 $ 6,943 $ 6,567 'Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2 low & moderate income tax increment 2 Information not collected prior to Fiscal Year 2006 164 TABLE 12 Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended 2007 2008 2009 2010 2011 2012 $ 278,311 $ 228,311 $ 178,311 . $ 128,311 $ - $ - - - 149,169 114,583 - 78,253 40,090 - - 751.754 741,171 729,480 716,468 - - 1,556.283 - 1,530,958 1,503,433 1,473,515 4,431,178 3.675,731 2.874,653 2,072,965 1;256.243 - 1,750,000 1,600,000 1,400,000 1,200,000 1,000,000 - 643,539 511,048 343,814 174,584 - - 139,145,000 136.350,000 133,390.000 130,255,000 126,925,000 123,385,000 6,025,000 5.915.000 5,800,000. 5,680,000 11,555,000 11,425,000 87,745,000 86.175,000 84,560,000 82,890,000 81,150,000 79,345,000 - - - 28,850,000 28,850,000 5,900,000 5,540.000 6.160,000 4,760,000 4,340,000 3.895.000 (877,230) (841,087) (804,944) (768,801) (1,115.799) (1,075,695) 245.040.798 239,154,003 235,359,040 228,778,771 256,270,610 248,054,478 825,848 681,048 285,217 54,543 286,097 169,084 825,848 681,048 285,217 54,543 286,097 169,084 $ 245,866,646 $ 239,835,051 $ 235,644,257 $ 228,833,314 $ 1256,656,707 $ 248,223,562 41,092 42.956 43,778 44,421 37,836 38,075 20,176 21,058 21,355 23,489. 23,528 23,528 $ 67,754 S 74,683 $ 76,227 $ 90.124 $ 104.410 $ 104,045 17.99% 15.25% 14.48% 10.81% 10.44% 10.14% $ 5,983 $ 5,583 $ 5,383 $ 5,151 $ 6,781 $ 6,519 165 CITY OF LA QUINTA TABLE 13 Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Dollars) Outstanding General Bonded Debt Fiscal Year City Hall Lease Tax Percent of Per Ended Lease Local Agency Allocation Assessed Median June 30 Obligation . Revenue BondsBonds Total Value' Household Income 2003 $ 7,190,000 $ - $145,578,164 $152,768,164 4.05% 2004 6,890,000 87,924,343 148,832,628 243,646,971 4.55% 2005 6,575,000 87,947,058 146,493,659 241,015,717 3.87% 2006 6,245,000 89,265,000 147,915,000 243,425,000 3.12% 2007 5,900,000 87,745,000 145,170,000 238,815,000 2.39% 2008 5,540,000 86,175,000 142,265,000 233,980,000 1.97% 2009 5,160,000 84,560,000 139,190,000 228,910,000 1.84% 2010 4,760,000 82,890,000 135,935,000 223,585,000 1.90% 2011 4,340,000 110,000,000 138,480,000 252,820,000 2.33% 2012 3,895,000 108,195,000 134,810,000 246,900,000 2.39% 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. . 2 Information not collected prior to Fiscal Year 2006 Source: City of La Quinta 2 2 2 3,694 3,525 3,133 3,003 2,481 2,421 2,373 CITY OF LA QUINTA Direct and Overlapping Debt June 30, 2012 City Assessed Valuation Redevelopment Agency Incremental Valuation Total Assessed Valuation Source: Riverside County Auditor Controller Overlapping Debt Repaid with Property Taxes And Assessments: Desert Community College District Coachella Valley Unified School District Desert Sands Unified School District (DSUSD) DSUSD Community Facilities District No. 1 City of La Quints 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 Percentage Applicable' 7.937% 34.800% 7.565% 100.000% 100.000% 86.247% 1.714% 1.714% 1.714% 34.800% 7.565°A 11.622% 13.207% $ 3,969,069,991 6,362,361,967 $ 10.331,4311958 Outstanding Debt 6/30112 $ 320.591,264 109,948,827 243,740,852 1,625,000 740,000 1,895,000 678,440,943 $ 655,042,180 357,540,000 5,055,000 48,850,000 57,905,000 1,410,000 2.280.000 impi;IIITI.kaBDI 1,806,523.123 Notes: ' For debt repaid with property taxes, the percentage of overlapping debt applicable Is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental units taxable assessed value that Is within the citys 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 bome by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay lag -term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not Imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. Source: California Municipal Statistics, Inc: overlapping debt Source: City of La Quints - City Direct debt TABLE 14 Estimated Share of Overlapping Debt $ 25.445,329 38,262,192 18,438,995 1,526,000 740,000 1.634.381 86,045,897 $ 11,227,423 6,128,236 86,643 16,999,8W 4,380,513 162,460 301.120 39,286,195 125,332,092 248,223,562 $ 373,555,654 167 Assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit CITY OF LA QUINTA Legal Debt Margin Information Last Ten Fiscal Years 2003 2004 2005 2440 2007 $ 3,767,559,451 $ 5,357,903,512 $ 6,220,471,097 $ 7,813,866.586 $ 9.975,646,644 15% 15% 15% 15% 15% 565,133,918 803,685,627 933,070,665 1,172,079,988 1,496,346,997 $ 565,133,918 $ 803,685,527 $ 933,070,665 $ 1,172,079,988 $ 1,496,346.997 as a percentage of debt limit 0.0% _ 0.0% 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 Quints has no general bonded indebtedness. Source: City of La Quinta Finance Department based upon the Assessed valuation received from the County of Riverside Auditor Controllers Office 0.0% 0.0% 0.0% 168 TABLE 15 MA 2009 2414 2411 2012 $ 11,866,414.134 $ 12,416,034,763 $ 11,753,185,892 $ 10,870,790,733 $ 10,331,431,958 15% 16% 15% 15% 15% 1,779,962,120 1.862,405,214 1,762,977.884 1,630,618,610 1,649,714,794 $ 1,779,962,120 $ 1,862,405,214 $ 1,762,977,884 $ 1,630,618,610 $ 1,549,714,794 0.0% 0.0% 0.0% 0.0% 0.0% 169 TAGF 15 sOSSOFsvOs cyan IAA I. WO Y. fll .) TUNeaSm Bombs -Riled Msl Y. 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ITu plv WT.wl De48vKa JNN3 basnSA OFSI Pewrvu YoAu: M[W Lb15 Cvvo M12 m12 SA ' i W.TM i - f S.bS.TM f - i 13u.91 ltt W ul.bucY Nwu BabF IGN HeS PmIMS bu1Yr EMeE ISYa las OSv BMIws MMBeN< JueX Ralane) DeMPaumwAs Rsuw PSYYSI bMM Cwwve mM s en" f - s MASS f M000 s 3wAX +M mW MM IMM =WD 380430 IN 2MS MI.nO - MI'M 315,000 365.220 1M MT 'W.575 - M0575 330.000 350.575 1M 'AMT "am MASS 31 000 333.M5 1.00 mM 05A00 675.M M000 315.880 IN MM GNAW SmA50 W0.M0 MAN IN 2010 075280 - 875.2m WI," MIN 1.00 Mil 072,525 - 072.525 420.000 M535 IN m12 5T3ul 873.521 SEAM 2m.ul IN WO Obeb nWudry Ns WesO.*�Vd. un Ml bINS MhmdY 1 T. lvussM tow, ISW.sB GIr~OSM OSPWSA WMmryamry Mb uhINNO b TV No[tlbn ByW ' WummxmeW d peXneb M1wn Ne Dy BsuMFub. GA:CNOsub{nad bpd Fr FW su 8u StleWBuwYFyuvyty2d Pu{em FW ' TV YoolM mabesOan AN l vq Nc¢tlN 21p A MNusb YNns Futls ss NNI b py Su vN S•M Su1iu MMnnls •TMBtMdOtlfI= NOlOt Oe IA hi4FlWaNtOlw yryS SIO SO Rtl WeMM NNOMFOM SO .$10 dG3.SG. M bFY 1MORF"SIG w M.3 pen Sw IU F tWYo I I,,,N nnX RwSSNM ,Nubk Ly W NNI Slam MbanO Os, Fub lMAOus.Y.sIOmmnSvnMOSSIwNFubNS3.Y2.X) hvn Se BMRtSsa I3SS t Cpa FmW.1•Fuu. XMpSSVM petl MMw tenmW bS �S>IW vatl Ma bv1A>. 'TM SN a CYmu urveE 8e la Wnb PAOrvebOmne AOecYe b00WnvW WotrY MawynerSeWn nSb prymevd M.S55.tF3 b Fr mt0201t wMaSpitl Mm hclu+PieY t W YveneXnveew. 'TleCwlya W.aWe m rclmm55r3bpapM1yly YrMNb Yrym12 x1bf b wveryurypsuSYvwMbb MpMnsyseS 0.tl viMappvYSwapb M1un uu mNM b MxN 1um12.. 170 CRY OF LAOUINTA TABLE 17 Demographic and EconaNe Statistics Last Ton Calendar Years - Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Veer Vas year, Year Year Veer Year Year Year Year Year Sauces: 1902 Z9,i Zg14 Z444 Z4➢fl Z4➢Z 2g4@ Z443 241P 24t1 2g32 Clry Land(Sq Miles) (3) 34.8 34.8 35.1 35.1 35.10 36.10 35.31 36.31 36.31 3&31 35.16 pprdation (1) 28715 30452 32522 36145 38.340 41.092 42,9% 43.778 44,421 37,8W 38,075 Medan Household hours, (in dollars) (4) (4) (4) (4) (4) $85.9W '$87.754 $74,683 $76.227 $90,124 $104,410 $104.045 Number of W.elluq Urdd (3)' 14.127 14,938 15,942 17,549 18.762 20,176 21,U58 21.355 23.489 23,528 23,528 Persons par Household (3) 2,841 2.846 2.80 2.878 2-855 2.846 2.851 2.851 2.885 2.549 2.6W Average Income par person per Mus"d (6), (6) (a) (6) (6) $23.084 f23.8D7 826,195 $26,737 $31,457 $40,951 $40.722 Labor Faro (2) 12600 13ODD 1370D 1430D 14.500 16,300 15.2W 14,8W 14,6W 14.400 15,100 Empo,anwd (2) 12100 126M 132W 13900 14,100 14.9DD 14,600 13.700 13,500 13.3W 14.100 Unenployrnarnl Red (2) 32D% 3.85% - 3.65% 2.80% 2.76% 2.01% 3.95% T."% 7.53% 7.64% 6.62% Mellen age (4) (4) (4) (4) (4) 36 38.4 36.4 36.4 422 41.5 42.8 Sources: (1) Sold of CalBand Department of Finawe- January l of soon year (2) Ste, of Celftnia Ealnanic Oavekgnenl Department webslle (3) City of La OuNd Buldlq& Set* and Commrdly Development Dpwkmb - (4) Dmerl VA~$ Newaleldr ClyOmMew thmugh 2DD9; HdLCodn & Caw Co npaNes thereafter -date not available beise 20 6 (5) The population number was updated based upon are 2010 Untiatl Sods Census (6)Thelift wdo, wasnotooAacddbefore20W 171 CITY OF LA OUINTA TABLE 18 Principal Employers Current Year and Nine Years Ago 2011-2012 2002-2003 Percent of - Number of Total Number of Employer Activity Rank Employees Employment Employees Rank La Quinta Resort & Club Hotel & Golf Resort 1 1,211 9.11% 1,500 1 Desert Sands Unified School Distict Government 2 968 7.28% 550 3 Wal-Mart Super Center Retailer 3 367 2.76% 250 4 Costoo Retailer 4 234 1.76% - - Home Depot Retailer 5 165 1.24% 180 6 Rancho La Quinta Golf Resort 6 152 1.14% 200 5 L.owe's Home Improvement Retailer 7 145 1.09% 150 7 Hideaway Golf Resort 8 122 0.92% 1,100 2 Tradition Golf Club Grocery Store 9 101 0.76% 97 12 City of La Quints Government 10 - 89 0.67% 76 13 Imperial Irrigation District Utility Company 110 9 Stater Brothers Grocery Store 126 8 Vons .Grocery Store - - 103 10 Total employment listed 3,554 26.72% 4,442 Total City Employment - July 1 13,300 12,100 "Total Employment" as used above represents the total employment of all employers located within City limits with over 100 employees Source: City of La Quinta iVAPA - CT'aF 4 W WTI TABLE 19 FWI CIVFm. 6y FuM ' feel T.OF IYw. F Y. F lY..r Flo Y..r Rr Ywr FY lY..r Fiv Yxr Flr Ymr FdYw Fl. Y. Fi Y. EMip Er , EWN EM, E�N6p E-aq E" EnduV Wk ErSV .I .6ma 00 J=7 .lure 30 JM10 Jur60 JM12 Fuuyb� amJ=50 200] 2001 2005 2006 2Wi 200e 2M 200E 2010 A11 Z012 Mnwiletrtli.n am am am 9.00 low 12.00 12M tb.m 14.00 12.00 Cp a" 5.m 6.00 6.Oo 6.00 6m 6.00 am 6A0 so 5.00 F. i.m 6.09 am 9m am am 9.00 am B.00. am Cwnmuwy S.Mw. im 1.00 e.09 4026 10.26 1125 11.25 10.35 lo'M 10.36 owlbN..tl Baay IBM law 21A0 22.00 2A.00 25.m 25.W 25m Wm 21.00 puny, m6 MNq am B.OD. am 12A0 12.00 12m 12.00 10.m 9.60 6.00 Nwl Ww 21m -22.00 MA 2026 2626 2625 2925 2125 26.25 2425 (MCw�n 0.50 Om Om Om, 0.50 0I O.W OAO Ta >6.00 ?am Mm W.00 97m 1W.00 IMM lotm am 69m 6 : C6yala Qwa. y3oTE: Tle C6Y ala QYa.amtl.NB6i. Ca.vya . w.«.labFd�vB.Ivka ra Wm 6wc.m.n.. 0.0.r9.n6 r tlnBuy�. miltr.GMNUw C.unlya Rivn.iM bFftFin 8.rvim. In sYAhn M Clywie6 p.M Cuur� b.paatl 6Y IeMOM y6BH. iM� pONbs M. 173 Finance: Number of Active Business Licenses Number of Animal Licenses Processed Number of Accounts Payable Checks Processed Number of investment purchases Par value of investments Number of cleared checks Number of outgoing bank wires Public Works: Encroachment permits issued Request for services Building a Safety: Permits: Single family Detached Single family Attached Residential Pod Wall/Fence Other Total Permits Code Compliance: Animal Control Incidents Handled Vehicle abatements Garage Sale Permits Weed abatements Nuisance abatements Community Services: Library activities: Library Volume Library books checked out Library Cards Issued Number of School Children Visiting Library Library Volunteer Hours Senior Center. Number of visits Senior Center Volunteer Hours Recreation activities: Participants: Leisure Classes Special events Adult Sports Golf mum: Golf rounds played Average $ Green fee Planning and Development: Number of residential units approved Commercial square footage approved Source: City of La Quints Note: Information not collected before 2006 CITY OF LA OUINTA Operating Indicators by Function Last Seven Fiscal Years TABLE 20 2006 2007 2008 2009 2010 2011 2012 3.208 3,424 3.690 3,523 3,428 3,183 3,310 892 1,022 1,272 1,609 1,768 1,619 1,674 4,696 4,722 4,840 4,819 4,393 4,530 3,766 39 73 64 36 32 20 27 $327,417.000 $392,729,000 $424.500,000 $229,969,000 $267,213,000 $186,480,000 $143,685,000 6,081 4.837 5,501 5,269 4,984 4,912 5,103 202 158 136 91 75 87 63 304 218 110 132 78 104 65 618 419 1152 1931 1306 746 534 1,044 526 297 129 56 85 39 227 38 0 6 12 0 11 866 612 331 207 152 148 127 1,502 963 583 299 . 178 218 149 1,607 1,404 1,121 908 790 1,033 916 5,246 3.543 2,332 1,549 1,188 1,484 1.242 1,901 687 2,920 3,630 3.984 4,392 4,246 909 296 351 346 214 263 139 1,190 1.444 1,519 1,535 1,663 1,805 1,430 141 76 117 97 125 143 106 1,611 2,032 2,142 3,130 2,340 2,252 2.433 42.050 44,981 66,124 81,124 89,060 92,484 109,000 55,002 99,659 117,738 215.843 259,711 263,064 275.838 5,550 5,325 3,675 3,694 3,547 3,822 4,477 745 260 841 1,036 T72 1,881 962 1,891 1,583 1.951 2,342 2,723 4.280 2,720 14,305. 12,955 14.013 15,739 20.326 18,403 16,642 3.481 4,192 3,332 2,583 3,131 3,099 2,690 1,373 1,192 990 1,140 1.437 1.512 2,016 4,668 7,809 8,109 11,053 8,795 8.933 36,305 3,402 6,827 8,550 10,806 13,364 13.092 5,647 38,934 40,548 40.516 39,150 43.779 45,269 46.949 71.12 76.97 81.09 76.13 71.59 70.7 70.4 1,063 534 338 100 255 208 285 533,726 124,821 342,502 390,097 6,200 27,526 61,662 174 CITY OF LAOUINTA TABLE 21 Capital ASW Statistics by Function ' Lest Ten Fiscal Years Fiscal Year Fiscal Year Fiscal Yew Fiscal Yew Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Endkg EndkV Endlrg Ending Eking Encin9 Ending Entlm9 ErdN9 Ending Jute 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Public works: Bowie(mles) 118A0 118.40 118A0 118A0 122 127 127 127 127 128 SibapaBn(Mks) 22 22 22 22 22 22 22 22 22 22 b'beatilgklsr r ' r 73 85 85 261 265 265 269 Tre18c signals x x x 44 45.25 45.25 49 50 50 51 Trdlbaigsx s s x 2,799 2,846 2,895 2,899 2,909 2,919 2,934 BrM9eex x x x 12 12 12 12 12 12 12 Paris mind recreation: Parke 9 12 12 12 12 13 13 13 13 13 Perk Acreage 40 207 207 207 207 209 209 218 218 218 Undevelopetl Park Acreage x x x 40 40 40 40 40 40 40 Senior Centro 1 1 1 1 1 1 1 1 1 - 1 kbasun L6aary 1 1 1 1 1 1 1 1 1 1 Owcourse: Muikipal Fist caueee - Source: City of Le Ciinu 'in FioI Year enclin92009 asset Was at Intersections sew eaiutlea for the Post time. ' In Fiscal Year erdnp 2008 tral9c sipreb, ee8k eigm and utlevelopetl park auee9e sere Included for the Postiane. 175 Company Name Policy Number Hartford 72BPEEW0254 Lexington 20412656 Lloyds 750020221-L-00 California Joint Powers Insurance Authority California Joint Powers Insurance Authority Alliant PEC0011896301 CITY OF LA OUINTA Schedule of Insurance in Force June 30, 2012 Cayeraae Employee Dishonesty, Forgery, Computer Fraud All Risk Property Insurance Including Auto Physical Damage, Terrorism, Boiler & Machinery (Excluding Earthquake) Earthquake/Rood Real & Personal Property Including Contingent Tax Interruption TABLE 22 Limits Term Premium $1,000,000 12/3/11 - 1213/12 $3,224 64,497.900 7/01/12. 7/01/13 59,620 20.000,000 2107/12. 2/07/13 122,811 Comprehensive General $50 Million 7/01/12 - 7/01113 279,613 Liability Single Limit per Occurrence Worker's Compensation 10,000,000 7/01/12 - 7101/13 108,547 Pollution Liability 10,000,000 - 7/01/11 - 7/01114 26,227 176 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item 2 Meeting Date: December 12, 2012 ITEM TITLE: Month End Cash Report - November, 2012 and Pooled Money Investment Board Report for October 2012 BACKGROUND: The November 30, 2012 month end cash report is hereby submitted for your review. This cash report is not a complete Treasury Report and excludes petty cash, deferred compensation and fiscal agent balances. Selected cash balances are reported to provide current cash balances to the Board. In addition, the Pooled Money Investment Board report for October 2012 is included in the agenda packet. RECOMMENDATION: Information item only. Robbeyn tird, Finance Director � ! )}\ /mz !§ 6ci !| $ [§a� ! - �a §!§ �( / \ � \ ` *\\ - - 2 2 2 2 IP 14Cd 2 / ! ¥ �6 ( \\ \ \ ci \./}/.2....\0. r . \k} - k ® k ci \ ■ . �!°«o:.� �!�/ 2 | • �� !!§!■!2§k�\!!! !!!||E!!#.»,| ® § # ! �&o,|,!!&.;! ■ 14 2 Bill Lockyer, State Treasurer Inside the State Treasurer's Office It Local Agency Investment Fund (LAIF) PMIA Performance Report f VfiV C 53St iEit Dates fi��i'C �tYfie[d.� t ! 6 "� r117f t!lluie�Yleftl f V .11ptUrigi .' n.da r 11/15/2012 0.32 0.34 229 11/16/2012 0.32 0.34 228 11/17/20'12 0.32 0.33 228 11/18/2012 0.32 0.33 228 11/19/2012 0.32 0.331 225 11/20/2012 0.32 0.33 226 11 /21 /2012 0.32 0.33 227 11/22/2012 0.32 0.33 227 11/23/2012 0.32 0.33 227 11/24/2012 0.32 0.33 227 11/25/2012 0.32 0.33 227 11/26/2012 0.32 0.33 222 11/27/2012 0.32 0.33 220 11 /28/2012 0.321 0.331 227 -Daily yield does not reflect capital gains or losses Corporate Bon 0.00% Commercial Pape 4.70% Time Deposits 6.94% CDsBNs 6.04% LAW Performance Report Quarter ending 09/30/2012 Apportionment Rate: 0.35% Earnings Ratio: .00000970563155028 Fair Value Factor: 1.001314072 Daily: 0.35% Quarter To Date: 0.36% Average Life: 242 PMIA Average Monthly Effective Yields OCTOBER 0.340% SEPTEMBER 2012 0.348% AUGUST 2012 0.377% Pooled Money Investment Account Portfolio Composition $63.0 Billion 10/31/12 Loans 409,0. Treasuries 53.68% At 9.49% Mortgages 0.44% 3 Page 1 of 1 TreasuryDirec t191ffi . tdol bp>dl ' DIM ti,. ri& MOIS > LOMI%, AOuft 0111 r FU111 all ALllion Retiv!11 Recent Bill Auction Results Satiety Ivsue M.,u" M...t ]..Amen[ 1". Tartu D. D..R at. ' R.% par 4300 CVSIR 4 WEEK - IIQ02012 12 27 2012 0.125 0,122 99.986389 91D956Y2 13 WEEK 11-29-2U12 02Q&2013 0.100 0.101 gJ.924222 91b99R8 26-WEEK 11 29 2012 05 30 200 0145 0.142 99.926694 9122956R2 ',. 21 My 1133.202 12-14-2111[2 0,155 0,152 99990958 9122960116 4 WEEK 31-23202 12-202012 0.155 0.153 99988325 9122956X4 13.WEEK 11-23 M12 02-21.200 0.095 0091 99.922500 9121111.0 26-WEEK 11-2320" 05-23-2013 0.135 0.13, 99,932125 912796AM2 4'WEEK 1115-2012 12-13-2012 0.145 0.142 99.988722 91279550 4FMY 11-15-2012 12.3320II 0.190 01193 99.975722 94219601 13-WEEK 1115-2012 0214-2013 0.305 0.106 99.933458 9127952F2 - 26 WEEK 11-15-2012 05-16,W13 0.145 0.142 99.926694 912295AG4 52-WEEK 1115-2012 11-14-2013 0.180 0,183 99.818000 912296AE9 4-WEEK 1p032012 12-06,2012 0.120 0.122 99.990662 912'1956V8 42-MY tt-0S-2a12 12-202012 0.125 Ell/ 99.98Y17 9122956X4 13-WEEK 11-,-2012 02A2-2013 0.105 0.1% 99.923468 9127955ZO 26 WEEK 11-08-2012 05-092013 0.150 0.152 99.924162 912296AF6 4 WEEK 1101 M12 11-M4012 0,130 0.332 so Moses 91D95600 13 WEEK 11-01-M12 01-31-2013 0.125 0.127 99.9G,4^ 03 9127952W 26-WEEK 1101-2012 05-02-2013 0.1E0 0.162 99.90111 9122956LO 4-WEEK 1025-2012 "-2}2012 0.125 0,122 99.989931 9122956T3 13-WEEK 1025-2012 Ot-242013 0,00 0,101 L9.924122 912>957(9 26-WEEK 1025-2012 N-25 M13 0, 150 0152 99.924162 9127%A65 4-WEEK 1010-2012 11-15-2012 0.125 0,22 99.990228 91229551.1 13-WEEK 10 IS 20l2 0117 W13 0,105 0.10E 99973458 9127957.1 26 WEEK 161 04-10.2013 0.150 0,152 99924162 912296M2 52-WEEK to is 2612 1017 2013 0.180 0.183 99818000 912295282 4-WEEK 10-11-2012 11-002012 0,115 0.112 99.991056 9I2 9 655 13-WEEK 10-31-2012 01-10413 0.100 0.101 99924122 9127955V9 26­WEEX 10.11-2012 04-11-2013 0.145 0.147 99926694 912MZ95 4-WEEK 1004-2012 11-61-2012 0.100 0.301 99992222 91279%Pl I}WEEK 10N 2012 01-03-2013 0.085 0.086 99.928514 912195629 26 WEEK 10.04-2012 04-p4-2033 0.135 0.132 99.931750 9122956F3 4-WEEK 09-2IM12 1e-25-2612 0.055 0.056 99.995722 91229%N6 13 WEEK 09-22-2012 12-27-2012 0.110 0.112 99.972194 9122956YZ 26-WEEK 0922Q012 03-28-2013 0.140 0,142 99.929222 912/95761 4-WEEK 09202012 1018-MI2 0.080 0,081 99.993228 9122955G2 11 WEEK 042020/2 t2Q0.2012 0.105 0.106 99923a58 9122956X4 ! 26 WEEK 09202012 03-21 W13 0.130 0,132 99.934278 9322952M2 52 WEEK 01-20-2012 04142013 0,125 0,t28 99.8M56 9127957KI 4 WEEK 09¢13-2012 10-112012 0.090 0.091 So 993000 9122956M8 EEEective with the 11/2/98 auction, all bills are auctioned using the single -priced method Erw \jpnLq(Iq(V[P1aTl Pn Act I 40.1y-Pa (>. IUancy 1!llvy(Y Nb ilJl r49A!GS`A YYqbve T11r1s & ClildKip, Itt4S55j{lllY ihl»1.Q4!El3Y V S. RSWlFV3�CP3.u+..0 g 'ttawry:..HutEi! 9r IPe 11!4i164kkt 4 http://www.treasurydirect.gov/RI/OFBills 11 /29/2012 TreasuryDirect Hglffi • )Ad Ui rilROIj IdOt0Yl85'nJCU$i...Rq%1.a9. R.QAWI r yaW"' A90.0Aa?d$0 I lelrl Note: c0 HU dnU TII k C n ReoulCs Recent Note, Bond, and TIPS Auction Results sacvrny Term T I... MMUNty merest ♦1a14 PH" Pace Yw Cate Cate Date Rate A % CUSIP 2-YEAR NOTE 13-30'2012 13-3U-2014 0.250 0.210 99.950135 912O28TE3 5 YEAR NOTE 11-30-2Ul"2 ]3-30-20ll 0.625 0.643 93.921392 912828UA6 ]-YEAR NOTE 012 11-30-2019 1.000 ].045 99.69T000 91282SUM 9 YEAR 8-M.TIVS 31-30-202 0295-2022 0.125 0.720 ]09.101500 912028TE0 3-YEAR NOTE 31-15-2012 ]t-15-M15 0.325 0.392 99.949348 912828US tPYF.M NOTE t1-15-20 ' 11-15-2022 11625 11:75 99.541393 912828TY6 3O YEAR BOND 11-15-2012 11-15-2. 2 2750 2.020 98.509255 9UN.QY2 2-YEAR NOTE W-31-2OI2 10-31-2014 0.250 O.M5 99.910331 91282M4 STEM NOTE 10-31-2012 10.31-2012 0750 0.774 99.M2515 912828T 0 '.. NEAR NOTE W 31-29II 20 10-31-19 1.250 1.262 99.886<W 912B28N2 ."aX R 4-MONTH Ton 1O-31 W12 02.15-2 2 0.250 0.429 109.47T963 912010QV3 3-YEAR ROTE 10.15-2012 10-15-2015 0.250 0.346 99.713736 9128281T7 9-YEAR 10 MONTM Non 30-35QO12 00-152022 1.625 l.Y00 9s.321876 91282OD9 1 ._,.aIO MONTH NONE to- 15-2Al2 08-15 2042 2.150 2,904 96.936227 912810QX9 2-YEAR NOTE 10-01�22 09-30 2014 0.250 0.273 99.954218 91282M3 5-YEAR NOTE 10-01-2012 09-30-2012 0.625 0.642 99.891985 912020T59 2-YEAR NOTE 10 01-2012 0930-2019 I P.p 1.055 99.62993a 91282MI 9-YEAR 10-MONTH TIPS 0 -28-2012 0]-15-2022 0.125 0250 108.522783 912828TEO 3-YEAR NOTE 09.12-2012 09-15-2015 0.250 0.332 99.241005 91282eri`5 9-YEAR 13-MONTH NOTE 03-122032 W 15-2022 1625 1.264 90.]40142 91282609 29-YEM I -"OWN BOND 0912-2012 08-15-2.42 2.750 2.896 97 080998 912810QX9 2-YEAR NOTE 08-31-2012 0031-2014 0.250 0273 59.954157 91282OR4 4-YEAR 8-MONTH TIPS W-31W12 04-152OV 0.125 -1. WE 102.850753 912828SQ4 5-YEAR NOTE 08-31-Z012 W-31-2017 0625 0.208 as 592962 912028TM2 2-YEAR NOTE 08-31-W12 W-31-M19 1.000 I081 ss 455337 9t2UMO 3-YEAR NOTE 08-15-2012 08-15-2015 0.250 0.370 99.642320 91282BTt6 10-YEAR NOT'. 08-15-2012 0-15-2022 1.625 1.680 99,495660 9U828TJ9 30-YEAR BOND 00-I5-:aT2 W-15-2. 2 2J50 2..825 98.489469 912810Q%9 2-YEAR NOTE. 02-31-2012 07-31-20A 0.125 OS20 W810521 9128MIT/ S YEIR NOTE 0231 W12 02.31-2012 O.SW 0.5M 99.506562 9]2528TG5 2-YEAR NOTE 07 31-2012 02-31-2019 0.875 0.954 99A66290 912828TH3 1O-YEAR TPS 07-31 W12 07 0-2OR 0.125 O.631 107.229708 912828TE0 3-YEW NOTE 07 1.2O12 02-15-MIS 0.250 0.366 W.654528 91282UTD2 9-YEAR 10 MONTH NOR 97-163012 05 15 M22 1.250 1A59 102654933 91282SW3 29-YFAR 10-ROWH NJND 02-16-2012 0515-2042 3.000 2.580 IW 69)603 91281M41 2 YEAR NOTE 07-02-2012 W-30-2014 0250 0.313 99.81029 912B28TAU - 5-YEAR NUR W 02 TO12 06-30-2 17 UA50 OT52 99990199 9t2828TO6 7-YEAR NOW 97-02-2012 06-30-2019 1.000 1.025 99.495918 91282B1C4 '29 YEAR B MOM TIPS W-29 W12 02-15 2042 0J50 0.520 108226791 91201OW3 3-YEAR NOR 06-15-412 06-152015 0.375 0.302 99.964243 912828524 e Denotes TIPS bond; all other TIPS 4lthout asterisks are notes f N+m q[]Efy ntaCloO /1Si 1.a1Y.-i'xC tlaOiC l J!JJYWCY 61,9BI N9tcgj I Web,te T 46Lytl Hs AIXeps l,A0.Y {J44A-Eill,90$ V5DWW„e^nt. t+r QK' IvA;y.v. hwn.1U t t11WIUIIP, 5 http://www.treasurydirect.gov/RI/0FNtebnd 11/29/2012 Page 1 of 4 Selected Interest Rates (Daily) - H.15 Current Release Release Dates Daily Update Historical Data About Announcements .......................... . Daily Update .. ...........---------------- Release Date: November 29, 2012 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. November 29, 2012 Selected Interest Rates Yields in percent per annum Instruments 2012 Nov 26 2012 Nov 27 2012 Nov 28 Federal funds (effective) 1 2 3 0.16 0.16 0.16 Commercial Paper a a s A Nonfinancial 1-month 0.14 0.14 0.15 2-month n.a. n.a. 0.17 3-month n.a. n.a. 0.20 Financial 1-month 0.17 0.15 0.15 2-month 0.21 0.19 0.18 3-month 0.14 0.20 0.20 CDs (secondary market) 27 1-month 0.19 0.19 0.20 3-month 0.23 0.24 0.24 6-month 0.31 0.32 0.34 Eurodollar deposits (London) 3 s 1-month 0.27 0.27 0.27 3-month 0.32 0.32 0.32 6-month 0.55 0.55 0.55 Bank prime loan 2 2 2 3.25 3.25 3.25 6 http://www.federalreserve.gov/releases/H 15/update/ 11 /29/2012 Page 2 of 4 Discount window primary credit 1O 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 3 °- 4-week 0.15 0.17 0.17 3-month 0.10 0.10 0.10 6-month 0.15 0.15 0.14 1-year 0.16 0.17 0.17 Treasury constant maturities Nominal it 1-month 0.14 0.17 0.17 3-month 0.10 0.10 0.10 6-month 0.15 0.15 0.14 1-year 0.17 0.18 0.18 2-year 0.27 0.27 0.27 3-year 0.36 0.36 0.35 5-year 0.68 0.66 0.64 7-year 1.09 1.07 1.05 10-year 1.66 1.64 1.63 20-year 2.39 2.38 2.36 30-year 2.80 2.79 2.79 Inflation indexed 12 5-year -1.36 -1.36 -1.35 7-year -1.10 -1.10 -1.10 10-year -0.73 -0.74 -0.75 20-year 0.00 0.02 0.02 30-year 0.38 0.37 0.38 Inflation -indexed long-term average 13 -0.06 -0.07 -0.07 Interest rate swaps 14 1-year 0.35 0.34 0.33 2-year 0.40 0.40 0.38 3-year 0.48 0.48 0.46 4-year 0.61 0.61 0.59 5-year 0.80 0.79 0.76 7-year 1.19 1.19 1.16 30-year 1.68 1.68 1.65 7 http://www.federalreserve.gov/releases/H 15/update/ 11 /29/2012 Page 3 of 4 30-year 2.55 2.56 2.53 Corporate bonds Moody's seasoned Aaa 3.57 3.56 3.54 Bea 4.56 4.55 4.54 State & local bonds 16 Conventional mortgages t7 n.a. Not available. Footnotes 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4.On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page (www.federaireserve.gov/re)eases/con. 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. 8. 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.govdboarddoes/i)resslbereg,/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.eov/releases/hl5/data.htm. 1. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity 8 http://www.federaireserve.gov/releases/H15/update/ 11/29/2012 Page 4 of 4 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.trmsurv.gov/resource-center/data-chart-center/interest rates/. 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 found at www.treasurv.gov/resource-center/data-chart- center/interest-rates/. 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 Garban Intercapital plc and published on Reuters Page ISDAFIX®l. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 1.5. Moody's Aaa rates through December 6, 2001, are averages of Aaa 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 avenges of business days unless otherwise noted. Current and historical H.15 data are available on the Federal Reserve Board's web site (www.fcdemlreserve.eovn. 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. 9 http://www.federaireserve.gov/releases/El15/update/ 11/29/2012 tiovemors of the federal Reserve System Page 1 of 3 Commercial Paper Summary Rates Volume Statistics Outstandino Year-end Maturity Distribution About Announcements Commercial Paper Rates and Outstanding Summary Derived from data supplied by the Depository Trust s clearing corporagpq Data as of November 28, 2012 Posted November 29, 2012 The commercial paper release will usually be posted daily at 9.45 a.m. However, the Federal Reserve Board makes no guarantee regarding the timing of the daily posting. This policy is subject to change at any time without notice. Rates AA nonfinancial A2/P2 nonfinancial Period 1- 1- 7- is- 30- 60- 90- 7- 15- 30- 60- 90- day day day day day day day day day day day day Nov. 22 n.a. n.a. n.a. n.a. n.a, n.a. n.a. 0.41 0.36 0.36 0.35 n.a. n.a. n.a. n.a. n.a. Nov. 23 0.14 n.a. 0.06 0.15 n.a. n.a. 0.43 0.39 0.43 n.a. 0.56 Nov. 26 0.14 0.12 0.13 0.14 n.a. n.a. 0.41 0.39 0.44 0.45 0.43 Nov. 27 0.13 0.16 0.14 0.14 n.a. n.a. 0.44 0.40 0.44 0.47 0.39 Nov. 28 0.14 0.13 0.13 0.15 0.17 0,20 �0.43 0.41 0.41 0.42 0.42 Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. AA financial AA asset -backed Period 1- 1- 7- 15- 30- 60- 90- 7- 15- 30- 60- 90- day day day day day day day day day day day day Nov. 22 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.20 n.a. n.a. n.a. n.a. n.a. Nov. 0.11 0.12 0.13 n.a. n.a. 0.22 0.24 0.25 0.25 0.21 n.a. 23 0.22 Nov. 0.11 0.12 0.12 0.17 0.21 0.14 0.25 0.22 0.22 0.26 0.29 26 0.22 Nov. 0.11 0.12 n.a. 0.15 0.19 0.20 0.27 0.26 0.24 0.26 0.29 27 0.22 Nov. 0.11 0.12 0.13 0.15 0.18 0.20 0.34 0.23 0.24 0.25 0.28 28 10 http://www.federalreserve.gov/releases/cp/ 11 /29/2012 Reserve System Page 2 of 3 Note: n.a. indicates that trade data was insufficient to support calculation of the particular rate. Outstanding Levels Seasonally adjusted Billions of dollars Period IINonfinancial Total Financial Asset- backed Other Total Domestic Foreign Total Domestic Foreign Monthly -end levels 2012-June 966.0 177.5 147.3 30.2 469.7 280.9 188.8 318.8 .0 July 1,000.5 184.6 144.8 39.9 497.3 286.9 210.3 318.6 .0 Aug. 996.6 186.0 144.0 41.9 500.0 283.1 216.9 310.7 .0 Sept. 976.0 179.4 139.8 39.6 495.0 269.9 225A 301.3 .3 Oct. 967.9 182.3 136.8 45.5 493.0 284.4 208.6 292.3 .3 Weekly (Wednesday) levels Oct.31 945.8 184.2 137.9 46.4 478.0 271.4 206.7 283.0 Nov.7 963.6 197.1 149.7 47.4 477.1 270.4 206.7 289.0 Nov.14 968.6 188.0 140.8 47.2 487.5 282.8 204.7 292.5 q.5 Nov.21 997.9 200.6 149.7 50.9 494.1 289.9 204.2 302.7 Nov.28 1,025.6 205.7 153.2 52.5 515.7 306.7 208.9 303.7 Not seasonally adjusted Billions of dollars Period Total Nonfinancial FinancialF Asset- backed Other TOYaI Domestic Foreign Total Domestic Foreign Monthly -end levels 2012-3une 962.0 172.8 132.1 40.7 476.5 285.3 191.2 312.7 .0 July 998.1 203.5 161.3 42.3 485.2 285.9 199.3 309.4 .0 Aug. 991.0 202.3 157.9 44.4 484.4 287.9 196.4 304.3 .0 Sept. 957.2 175.2 136.0 39.2 476.1 276.7 199.3 305.5 .5 Oct. 948.4 200.9 157.7 43.2 451.3 272.1 179.2 295.7 .5 Weekly (Wednesday) levels Oct.31 948.4 200.9 157.7 43.2 451.3 272.1 179.2 295.7 .5 Nov.7 954.8 205.7 163.9 41.9 453.4 269.2 184.2 295.2 .5 Nov.14 941.0 200.8 158.8 42.0 447.1 267.3 179.8 292.5 .5 Nov.21 959.2 209.8 167.2 42.7 453.2 268.7 184.5 295.7 .5 Nov.28 959.4 199.5 157.2 42.3 462.6 274.1 188.6 296.8 .5 11 http://www.federalreserve.gov/releases/cp/ 11 /29/2012 Page 3 of 3 Return to ton 12 http://www.federalreserve.gov/releases/cp/ 11/29/2012 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF OCTOBER 2012 WITH OCTOBER 2011 (DOLLARS IN THOUSANDS) Average Daily Portfolio $ Accrued Earnings $ Effective Yield Average Life -Month End (in Days) 59,660,874 $ 17,204 $ 0.340 % 229 63,739,140 $-4,178,266 20,806 $ .3,601 0.385 % -0.045 % 229 ©i Total Security Transactions Amount $ 21,176,460 $ 17,336,997 $ +3,839,453 Number 426 348 +77 Total Time Deposit Transactions Amount $ 2,939,000 $ 3,863,800 $ -924,800 Number 113 163 -40 Average Workday Investment Activity $ 1,048,498 $ 1,060,040 $ -11,642 Prescribed Demand Account Balances For Services $ 1,682,063 $ 1,768,701 $ -76,648 1 13 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) October 31, 2012 DIFFERENCE IN PERCENT OF TYPE OF SECURITY PERCENT OF PORTFOLIO FROM Governmentent AMOUNT PORTFOLIO PRIOR MONTH Bills $ 19,065,945 30.28 +0.33 Bonds 0 0.00 0 Notes 14,730,451 23.40 -2.38 Strips �0 0 0 Total Government $ 33,796,396 53.68 Federal Agency Debentures $ 1,283,159 2.04 -0.03 Certificates of Deposit 3,800,085 6.04 -2.89 Bank Notes 0 0.00 0 Bankers'Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 4,293,453 6.82 -0.41 Time Deposits 4,367,640 6.94 -0.14 GNMAs 8 0.00 0 Commercial Paper 2,959,584 4.70 +3.37 FHLMC/Remics 279,050 0." -0.02 Corporate Bonds 0 0.00 0 AB 55 Loans 213,140 0.34 -0.10 GF Loans 11,566,700 18.37 +2.28 NOW Accounts 0 0.00 0 Other 399,952 0.63 -0.01 Reversed Repurchases 0 0.00 0 ' Total (All Types) $ 62,959,167 100.00 INVESTMENT ACTIVITY OCTOBER 2012 SEPTEMBER 2012 NUMBER MA OUNT NUMBER AMOUNT Pooled Money 425 $ 21,176,450 268 $ 13,395,219 Other 20 862,342 29 669,147 Time Deposits 113 2,939,000 74 1,470,000 Totals 558 $ 24,977,792 371 $ 15,534,366 PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month 0.340 0.348 0.357 0.363 14 I Pooled Money Investment Account Portfolio Composition $63.0 Billion 10/31 /12 Corporate Bonc 0.00% Commercial Paper 4.70% Time Deposits 6.94% CDs/BP 6.04% Loans 9.49% Mortgages 0.44% Treasuries 53.66% u 3 15 BOARD MEMBER ITEMS