2014 03 12 IABInvestment Advisory Board agendas and
staff reports are now available on the
City's web page: www.la-guinta.o
INVESTMENT ADVISORY BOARD
AGENDA
STUDY SESSION ROOM
78-495 Calle Tampico, La Quinta
REGULAR MEETING on WEDNESDAY, MARCH 12, 2014 AT 4:00 P.M.
CALL TO ORDER
1 . Pledge of Allegiance
2. Roll Call
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 January 8, 2014
CONSENT CALENDAR
1 . Receive and File Treasurer's Report for December 2013
BUSINESS SESSION
1 Consideration of Fiscal Year 2014/2015 Investment Policy and Work Plan
Items
CORRESPONDENCE AND WRITTEN MATERIALS
1 . City of La Quinta FY 2012/2013 Audited Financial Statements
INVESTMENT ADVISORY BOARD AGENDA 1 MARCH 12, 2014
2. Month End Cash Report, January 2014 and the Pooled Money Investment
Board Reports — December 2013 and January 2014
BOARD MEMBER ITEMS — None
DIRECTOR'S ITEMS
1. Presentation on Proposed Landscape Enhancements and Assessments for
North La Quinta.
ADJOURNMENT
The next regular meeting of the Investment Advisory Board will be held on April 9,
2014, commencing at 4:00 p.m. at the La Quinta Caucus Room, 78-495 Calle
Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
1, 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 March 6, 2014.
DATED: March 6, 2014
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 (1) 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 MARCH 12, 2014
INVESTMENT ADVISORY BOARD
MINUTES
WEDNESDAY, JANUARY 8, 2014
CALL TO ORDER
A regular meeting of the La Quinta Investment Advisory Board was called to order
at 4:00 p.m. by Chairman Mortenson.
PRESENT: Board Members Donais, Mortenson, Spirtos and Godbey
ABSENT: Board Member Park
STAFF PRESENT: Finance Director, Robbeyn Bird and Senior Secretary, Vianka
Orrantia
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA— Confirmed
APPROVAL OF MINUTES
1. Approval of the Minutes of December 11, 2013
Motion — A motion was made by Board Members Spirtos/Donais to approve the
Minutes of December 11, 2013, as submitted. Motion passed unanimously.
CONSENT CALENDAR ITEMS
1. Transmittal of Treasury Report for November 30, 2013
Ms. Bird presented and reviewed the staff report for the months of October 2013.
Motion — A motion was made by Board Members Spirtos/Donais to approve the
Treasurer's Report for November 30, 2013 as amended. Motion passed
unanimously.
INVESTMENT ADVISORY MINUTES January 8, 2014
BUSINESS SESSION - None
CORRESPONDENCE AND WRITTEN MATERIAL
Month End Cash Reports for December 2013, and the Pooled Money
Investment Board Reports for November 2013
Noted and Filed
BOARD MEMBER ITEMS — None
DIRECTORS ITEMS
Ms. Bird advised the Board of her resignation.
ADJOURNMENT
There being no further business, it was moved by Board Members Godbey/Donais
to adjourn this meeting at 4:20 p.m. Motion passed unanimously.
Respectf ul su i e
Vianka Orrantia, Senior Secretary
City of La Quinta, California
INVESTMENT ADVISORY MINUTES 2 January 8, 2014
INVESTMENT ADVISORY BOARD CONSENT CALENDAR
Item 1
Meeting Date: March 12, 2014
ITEM TITLE:
Transmittal of Treasury Report for
December 31, 2013
BACKGROUND:
Attached please find the Treasury Report December 31, 2013.
RECOMMENDATION:
and File the Treasury Report for December 31, 2013.
Patrick Griffiri, Inferim Finance Director
MEMORANDUM
TO: La Quinta City Council
FROM: Patrick Griffin, Interim Finance Director/Treasurer
SUBJECT: Treasurer's Report for December 31, 2013
DATE: January 30, 2014
Attached is the Treasurers Report for the month ending December 31, 2013. The report is submitted to
the City Council each month after a reconciliation of accounts is accomplished by the Finance Department.
The following table summarizes the changes in investment types for the month:
Investment
Beginning
Purchased
Notes
I Sold/Matured
Other
Ending
Change
LAIF
17,993,075
$ 1,500,000
$ (700,000)
0
$ 18,793,075
800,000
Interest bearing active bank deposit
-
0
-
0
Certificates of Deposit
1,680,000
0
1,680,000
0
US Treasuries
4.0,199,481
(10,000,000)
1,324
30,200,805
(9,998,676)
US Gov't Sponsored Enterprises
39,948,647
1,326
39,949,973
1,326
Commercial Paper
-
0
0
Corporate Notes
-
0
0
0
Mutual Funds
2,559,799
1 10,000,023
1
(1)
12559821
10,000,022
Subtotal
$ 102.351,002
$ 11,500,023
[
1 $ (10,700,005)j
$ 2�649t$
1�NN7�
$ 802,672
Cash $ 565.369 $ 1,366,186 1 (1) & (3)1 $ 1.931.555 1 $ 1.366.186
Total $ 102.946,371 $ U,866.209 $ (10300.000)j S 2.649 $ 105,115.229] $ 2.168.858
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.
Patrick
Interim Finance Director/Treasurer
Footnote
(1) The amount reported represents the net increase (decrease) of deposits and withdrawals from
the previous month.
(2) The amount reported in the other column represents the amortization of premium/discount for the
month on US Treasury, Commercial Paper and Agency investments.
I-Z4
Datel
(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.
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City of La Quinta
Comparative Rates of Interest
December 31. 2013
City of La Quinta
Year
Month
Annualized
Pooled Cash
Eaminas,
Fiscal Aaent
Overall
Average
Maturity (days)
Treasury BillslNote
Commercial Paper
Three Month
Non -Financial
LAW Ra
1.04%
Three Month
Six Month
One Year
Two Year
FY 0911 G
July 2009
0.69%
0.30%
0.65%
ill
0.19%
0.28%
0.47%
100%
0.28%
August2009
0.64%
0.30%
0.61%
92
0.16%
0.26%
0.46%
1,00%
0.24%
0.93%
Sept 2009
0.56%
0.31%
0.53%
112
0.12%
0.19%
0.41%
1 , 00%
0.19%
0.75%
Oct 2009
0.52%
0.31%
0.50%
90
0.08%
0.19%
0.38%
100%
0. 1 9%
0.65%
Nov 2009
0.56%
0.31%
0.53%
152
0.04%
0.14%
0.32%
0.75%
0.15%
0.61%
Dec 2009
0.56%
0.15%
0.51%
239
0.11%
0.20%
0.16%
1.00%
0.16%
0.57%
Jan 2010
0.46%
0.15%
0.43%
179
0.06%
0.14%
0.34%
0.88%
0.13%
0.56%
Feb 2010
0.51%
0.16%
0.48%
162
0.13%
0.19%
0.32%
0.88%
0.15%
058%
Mai-2010
0.50%
0.16%
0.47%
172
0.15%
0.24%
0.38%
1.00%
0.20%
0.55%
Apr 2010
052%
0.16%
0.48%
162
0.15%
0.24%
0.49%
1.00%
0.23%
0.59%
May 2010
0.52%
0.16%
0.48%
116
0.17%
0.22%
0.37%
0.75%
0.28%
0.56%
June 2010
0.49%
0.05%
0.31%
134
0.16%
0.22%
0.32%
0.63%
0.32%
0.53%
FY 10/11
July 2010
0.50%
0.15%
0.47%
119
0.16%
0.20%
0.30%
0.63%
0.28%
053%
August 2010
0.49%
0.15%
0.46%
108
0.15%
0.19%
0.26%
0.38%
0.25%
0.51%
Sept 2010
0.55%
0.15%
0.51%
107
0.16%
0.19%
0.27%
0.38%
0.24%
0.50%
Oct 2010
0.55%
0.15%
0.51%
88
0.13%
017%
0.23%
0.38%
0.23%
0.48%
Nov 2010
0.53%
0.15%
0.49%
84
0.18%
0.21%
0.28%
0.50%
0.23%
0.45%
Dec 2010
0.57%
0.14%
0.52%
265
0.15%
0.19%
0.30%
0.63%
0.23%
0.46%
Jan 2011
0.51%
0.14%
0.43%
206
0.16%
0.18%
0.28%
0.63%
0.24%
0.54%
Feb 2011
0.55%
0.17%
0.46%
210
0.15%
0.17%
0.31%
0.63%
0.23%
0.51%
Mar2011
0.54%
0.17%
0.45%
218
0.05%
0.13%
0-26%
0.75%
0.23%
0.50%
Apr2011
0.59%
0.17%
0.48%
192
0.05%
0.10%
0.28%
0.63%
0.20%
0.59%
May 2011
0.48%
0.17%
0.41%
156
0.06%
0.12%
0.20%
0.50%
0.16%
0.41%
June 2011
0.53%
000%
0.35%
126
0.03%
0.10%
0.20%
0.38%
0.15%
0.45%
FY 11/12
July 2011
OZ3%
0.00%
0.35%
112
0.07%
0.12%
0.15%
0.20%
0.14%
0.38%
August 2011
0.60%
0.00%
0.38%
102
0.02%
0.05%
0.10%
0.13%
0.16%
0.41%
Sept 2011
0.58%
0.03%
0.39%
124
0.02%
0.06%
0.09%
0.13%
0.14%
0.38%
Oct 2011
0.53%
0.03%
0.35%
117
0.01%
0.06%
0.12%
0.25%
0.15%
0.39%
Nov 2011
0.52%
0.03%
0.37%
94
0.03%
0.07%
0.10%
0.25%
0.14%
0.40%
Dec 2011
0.48%
0.03%
0.35%
86
0.02%
0.06%
0.11%
0.13%
0.14%
0.39%
Jan 2012
045%
0.03%
0.34%
74
0.05%
0.08%
0.11%
0.25%
0.14%
0.39%
Feb 2012
0.49%
0.05%
0.36%
72
0.12%
0.15%
0.17%
0.25%
0.17%
0.39%
Mar2012
0.44%
0.05%
0.34%
74
0.08%
0.14%
0.19%
0.25%
0.18%
0.38%
Api-2012
0.44%
0.09%
0.35%
61
0.10%
0.15%
0.19%
0.25%
0.20%
0.37%
May 2012
0.43%
0.09%
0.34%
62
0.09%
0.14%
019%
0.25%
0.19%
0.36%
June 2012
0.38%
0.08%
0.29%
47
0.10%
0.15%
0.21%
0.25%
0.21%
036%
FY 12/13
July 2012
0.41%
0.08%
0.31%
112
0.11%
0.15%
0.18%
0.22%
0.22%
0.36%
August2012
0.41%
0.08%
0.29%
31
0.11%
0.14%
0.20%
0,25%
0.20%
0.38%
Sept2012
0.43%
0.09%
0.33%
34
0.11%
0.14%
0.18%
0.25%
0.20%
0.35%
Oct 2012
0.47%
0.10%
0.36%
22
013%
0.16%
0.18%
0.25%
OA9%
0.34%
Nov 2012
0-48%
010%
0.36%
161
0.10%
0.15%
0.18%
0.25%
0.20%
032%
Dec 2012
0.47%
0.10%
0.36%
137
0.08%
0.12%
0.16%
0.13%
0.20%
0.33%
Jan 2013
0.44%
0.10%
0.34%
ill
0.08%
0.11%
0.14%
0.25%
0.16%
0.30%
Feb 2013
0.37%
0.10%
0.29%
105
0.13%
0.14%
0.15%
0.25%
017%
0-29%
Mar2013
0.39%
0.09%
0.30%
123
0.08%
0.11%
0.15%
0.25%
0.15%
0.29%
Apr2013
0.31%
0.08%
0.25%
186
0.05%
0.06%
0.14%
0.13%
0.12%
0.26%
May 2013
0.30%
0.06%
0.23%
175
0.05%
0.08%
0.14%
0.25%
0.10%
0.25%
June 2013
0.30%
0.07%
0.23%
212
0.05%
0.09%
0.16%
0.38%
0.10%
0.24%
FY 13/14
July 2013
0.28%
0.07%
0.21%
336
0.03%
0.07%
0.12%
0.25%
0.111%
0.27%
AuguM,2013
0.28%
0.06%
0.21%
303
0.03%
0.06%
0.07%
0.14%
0.09%
0,27%
Sept 2013
0.30%
0.07%
0.23%
321
0.01%
0.04%
0.01%
0.25%
0.08%
0.26%
Oct 2013
0.48%
0.06%
0.31%
427
0.05%
0.08%
0.16%
0.25%
0.11%
0.27%
Nov 2013
0.49%
0.06%
0.31%
444
0.05%
0.08%
0.16%
0.25%
0.09%
0.26%
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INVESTMENT ADVISORY BOARD Business Session: 1
Meeting Date: March 12, 2014
ITEM TITLE:
Consideration of the Fiscal Year 2014/2015 Investment Policy and Work Plan
BACKGROUND:
As part of the work plan, the Investment Advisory Board is asked to review the
Investment Policy and make any recommendations for the City Council's
consideration in June of each year.
Attached please find the draft Fiscal Year 2014/2015 Investment Policy and the
Fiscal Year 2013/2014 Investment Advisory Board Work Plan.
RECOMMENDATION:
Continue review of the Fiscal Year 2014/2015 Investment Policy and Work Plan for
MipfQval by the City Council in June 2014.
Patrick G?$ffin, Interim Finance Director
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2013/20142014/2015
Table of Contents
Section iqla!q
Executive Summary
I General Purpose
11 Investment Policy
III Scope
IV Objectives
00. Safety of Principal
00, Provide Liquidity
0. Yield A Risk -Based Market Rate Of Return
V Maximum Maturities
V1 Prudence
Vil Authority
Vill Ethics and Conflicts of Interest
IX Authorized Financial Dealers and Institutions
01. Broker/Dealers
pol Financial Institutions
x Permissible Deposits and Investments
XI Investment Pools
XII Payment and Custody
XIII Interest Earning Distribution Policy
XIV Internal Controls and Independent Auditors
XV Reporting Standards
XVI Financial Assets and Investment Activity Not Subject to this Policy
Xvil Investment of Bond Proceeds
XIII Investment Advisory Board - City of La Quinta
XIX Investment Policy Adoption
Appeqdi�ce§ Igipfq
Page
2
6
6
7
7
7
8
13
13
13
14
15
15
16
16
17
Page
A Summary of Permissible Deposits and Investments
18
B City of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board
20
C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 21
D Segregation of Major Investment Responsibilities
23
E Listing of Approved Financial Institutions
24
F Broker/Dealer Questionnaire and Certification
25
G Request for Proposal for Professional Portfolio Management Firm
29
H Permissible Investment Chart - Professional Portfolio Management Firm
35
1 Investment Management Process and Risk
36
J Glossary
37
1
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2013/20142014/2015
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards that must be
followed in administering the City of La Quinta's deposits and investments.
The City's Investment Policy conforms to all state and local statutes and applies to all deposits
and investments of the City of La Quinta, Successor Agency to the City of La Quinta
Redevelopment Agency, and the City of La Quinta Financing and Housing Authorities
(the"City").
It is the City's policy to deposit and invest public funds in a manner that shall provide:
0- Safety of principal;
10- Liquidity to meet all of the City's obligations and requirements that may be reasonably
anticipated; and
0- A risk -based market rate of return.
It is the City's policy to hold securities and other investments until maturity. This buy -and -hold
policy shall not prevent the sale of a security to minimize loss of principal when an issuer or
backer suffers declining credit worthiness or when the liquidity needs of the portfolio require
that a security be sold.
Authority to manage the City's investment portfolio is derived from the City Ordinance.
Management responsibility for the investment program is delegated to the City Treasurer, who
shall establish and implement written procedures for the operation of the City's investment
program consistent with the Investment Policy. The Treasurer shall establish and implement a
system of internal controls to accomplish the following objectives:
00- Safeguard assets;
0,- Orderly and efficiently conduct its business, including adherence to all City management
policies;
0,- Prevent or detect errors and fraud;
00- Accurately complete all accounting records; and
0,� Timely prepare all reliable financial information.
The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the
independent auditors in connection with the annual audit of the City's Financial Statements.
The City Manager, City Treasurer and city employees involved in the City's banking and
investment process shall conduct the City's business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest.
The City Treasurer maintains a listing of financial institutions which are approved for investment
purposes. All Broker/Dealers and financial institutions that provide investment services will be
subject to City Council approval.
The Treasurer will be permitted to invest only in the permissible deposits and investments
described in Section X and Appendix A up to the specified maximum allowable percentages
2
and/or dollar limitations and, where applicable, through the bid process requirements. Permissible
deposits and investments include, in general:
0- FDIC -Insured Checking, Savings, and Sweep Accounts;
No- Collateralized Bank Deposits;
0- Certificates of Deposit;
0, Negotiable Certificates of Deposit;
lo- U.S. Government Agency Securities and Federal Government Securities;
0,- Prime Commercial Paper;
0,- Local Agency Investment Fund (LAIF);
Oo- Money Market Mutual Funds;
0- Corporate Notes; and
01- Professionally Managed Accounts.
The City's deposits and investments are generally limited to three years' maximum maturity.
However, the projected amount of funds not expected to be disbursed within five years may be
invested in notes and bonds maturing between three and five years. Additionally, funds may be
invested for up to ten (10) years as further discussed in Section V.
The City's Investment Policy does not specify a single benchmark as a goal or target yield for a
rate of return on its investment portfolio. As a basis for comparison only, the Treasurer's
monthly report will display the rates of return on the three-month Bill, six-month Bill, and the one
and two-year U.S. Treasury Note, comparable -period rates for commercial paper, and the yield
for the State Treasurer's Local Agency Investment Fund (LAIF).
The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual
basis. The Investment Policy will be adopted before the end of June of each year.
This Executive Summary is only an overview of the City's Investment Policy. Reading this
summary does not constitute a complete review, which can only be accomplished by reviewing all
of the pages herein.
City of La Quinta
Statement of Investment Policy
July 1, 20134 through June 30, 20145
Adopted by the City Council on
GENERAL PURPOSE
The general purpose of this document is to provide the rules and standards that must be followed
in administering the City of La Quinta's deposits and investments.
11 INVESTMENT POLICY
It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall
provide:
0- Safety of principal;
0- Liquidity to meet all of the City's obligations and requirements that may be reasonably
anticipated; and
0- A risk -based market rate of return.
The Investment Policy conforms to all State and local statutes governing the investment of public
funds and sets forth the permissible deposits and investments of the City's funds and the
limitations thereon.
III SCOPE
Except as further detailed in Section XVII, this Investment Policy applies to all deposits and
investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this
document as the "City"). These funds are reported in the City's Comprehensive Annual Financial
Report (CAFR) and include all funds within the following fund types:
0, General
0- Special Revenue
0- Capital Projects
Do, Debt Service
0, Enterprise
00- Internal Service
0,- Trust and Agency
0- Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:
1 . Safety of Principal
Safety of principal is the foremost objective of the City's investment program.
rd
Investments shall be undertaken in a manner that seeks to ensure the preservation of
principal of the overall portfolio in accordance with the permissible deposits and
investments.
The City shall endeavor to preserve its investment principal by making only permissible
deposits and investments, undertaken in a controlled manner to minimize the possibility of
loss or misappropriation through malfeasance or otherwise. Investments not backed by
the full faith and credit of the United States Government shall be diversified by allocating
assets between different types of permissible investments, maturities, and issuers as a
means to mitigate credit risk and interest rate risk.
A. Credit Risk is the risk of loss from the failure of the security issuer or backer.
Credit risk may be mitigated by:
0- Limiting investments to investment grade securities as permitted in Section X;
0- Diversifying the issuers of the securities in the investment portfolio so that
potential losses due to issuer failure or individual securities downgrades may be
minimized.
B. Interest Rate Risk is the risk that market values of securities in the portfolio will
decline due to changes in general interest rates. Interest rate risk may be mitigated
by:
0,- Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities
on the open market prior to maturity; and
0- Investing operating funds primarily in shorter -term securities.
C. Liguidity Risk is the risk that a security cannot be liquidated because of its unique
features or structure or because it is thinly traded. Liquidity risk is not a material
issue for the City's portfolio because of the permissible deposits and investments
(see Section X) and because the City maintains a buy -and -hold policy and holds
securities and other investments to maturity. A discussion of the City's investment
process and risk is presented in Appendix 1.
2. Provide Liquidity
The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs
that may be reasonably anticipated. This is accomplished by structuring the portfolio so
that sufficient liquid funds are available to meet anticipated demands. Furthermore, since
all possible cash needs cannot be anticipated the portfolio should be diversified and
consist of securities with active secondary or resale markets.
The City's policy is to hold securities and other investments to maturity. Accordingly,
securities shall not be sold prior to maturity with the following exceptions:
00. A security with declining credit quality can be sold early to minimize loss of
principal;
10. Unanticipated liquidity needs of the portfolio require that one or more securities be
sold.
4_�,
3. Yield A Risk -Based Market Rate Of Return
The City's investment portfolio shall be structured with the objective of yielding a risk -
based market rate of return throughout budgetary and economic cycles. Return on
investment is less important than the safety and liquidity objectives described above.
The City's Investment Policy does not specify a single benchmark as a goal or target yield
for a rate of return on its investment portfolio. The portfolio's rates of return will be
influenced by several factors, including actions by the Federal Reserve Board, the
marketplace, and overall economic perceptions and conditions. These factors will not
affect yield during the securities' holding period because the City's buy -and -hold policy
fixes the securities' yield at the time of purchase.
As a basis for comparison only, the Treasurer's monthly reports will display the rates of
return on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note,
comparable -period rates for commercial paper, and the yield for the State Treasurer's
Local Agency Investment Fund (LAIF). The Treasurer may use these or any other
published rates of return that the Treasurer deems appropriate for comparison to the return
on the City's investment portfolio.
V MAXIMUM MATURITIES
It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk
of market value fluctuations with overall market interest rates. This buy -and -hold policy shall not
prevent the sale of a security to minimize loss of principal when an issuer or backer suffers
declining credit worthiness or when the liquidity needs of the City require that a security be sold.
The buy -and -hold policy requires that the City's investment portfolio be structured so that
sufficient liquid funds are available from maturing investments and other sources to meet all
reasonably -anticipated cash needs. To meet anticipated cash needs, it is essential that the
Treasurer have reliable, diligently prepared cash flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten
years. For FY201 3/2014 2014/2015, the amount of such funds is projected to be $40 million.
Funds up to that amount may be invested in U.S.Treasury notes and bonds, Local Agency
Obligations, and California Local Agency Obligations maturing between 3 and 10 years. For all
other funds, investments are limited to five years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in
Probate Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows: "Investments shall
be made with judgment and care - under circumstances then prevailing - which persons of
prudence, discretion, and intelligence exercise in the professional management of their own
affairs, not for speculation, but for investment, considering the probable safety of their capital as
well as the probable income to be derived."
n.
VII AUTHORITY
Authority to manage the City's investment portfolio is derived from sections 35607 and 35608 of
City Ordinance 3.08.010. Management responsibility for the investment program is delegated to
the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the
Investment Policy.
The City Treasurer shall establish written procedures for the operation of the investment program
consistent with the Investment Policy. Procedures should include reference to safekeeping, wire
transfer agreements, banking service contracts, and collateral/depository agreements. Such
procedures shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as provided under the
terms of this Investment Policy and the procedures established by the City Treasurer. The City
Treasurer shall be responsible for all transactions undertaken and shall establish a system of
controls to regulate the activities of subordinate officials. The City Manager or his/her designee
shall acknowledge in writing all purchases and sales of investments prior to their execution by the
City Treasurer.
VIII ETHICS AND CONFLICTS OF INTEREST
The City Manager, City Treasurer and city employees involved in the City's banking and
investment process shall conduct the City's business in an ethical manner and refrain from any
activity or relationship that may be, or have the appearance of, a conflict of interest. Any
questionable activity or relationship shall be reported immediately and in compliance with the
procedures set forth in Section 1.40 — Conflicts of Interest and Acceptance of Gifts and other
Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with
the personnel policies of the City and, until resolved, the officer or employee shall refrain from
participating in the City's business related to the matter.
The City Manager, City Treasurer and City employees may conduct personal business with banks,
brokers, and other financial institutions that are authorized to conduct business with the City
provided that the terms of the activity to the accountholder with the City are the same as those
that are available to the public in general.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer maintains a listing of financial institutions which are approved for direct
investment purposes. In addition a list will also be maintained of approved broker/dealers selected
by credit worthiness.
1 Broker/Dealers who desire to become bidders for direct investment transactions must
supply the City with the following:
00. Current audited financial statements;
ON, Proof of Financial Industry Regulatory Authority (FINRA) Certification;
No. Trading resolution;
0. Resume of Financial broker; and
0. Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F)
which contains a certification of having read the City's Investment Policy.
The City Treasurer shall evaluate the documentation submitted by the broker/dealer and
independently verify existing reports on file for any firm and individual conducting
investment related business.
The City Treasurer will also contact the following agencies during the verification process:
00. Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-
800-289-9999).
No. State of California Department of Corporations (1 -916-445-3062).
The City Treasurer maintains a listing of financial institutions which are approved for
investment purposes. All Broker/Dealers and financial institutions that provide investment
services will be subject to City Council approval.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury
Department regulations. Each mutual fund shall provide a prospectus and statement of additional
information.
2. Financial Institutions will be required to meet the following criteria in order to receive City
funds for deposit or investment (see Appendix E, "Listing of Approved Financial
Institutions"):
A. Insurance - Public Funds shall be deposited only in financial institutions having
accounts insured by the Federal Deposit Insurance Corporation (FDIC).
B. Collateral - The amount of the City's deposits or investments not insured by the
FDIC —shall be collateralized by securities with market values of 110%, or by
mortgages with market values 150%, of the amount of invested funds plus unpaid
interest earnings.
C. Disclosure - Each financial institution maintaining invested funds in excess of the
FDIC insured amount shall furnish the City a copy of the most recent Call Report.
The City shall not invest in excess of the FDIC insured amount in banking
institutions which do not disclose to the city a current listing of securities pledged
for collateralization in public monies.
X PERM ISSI BLEDEPOSITS AND INVESTMENTS
Permissible deposits and investments are summarized below. A more comprehensive list is
included in Appendix A.
Permissible Investments and Limitations
Maximum
(See Appendix A for Additional Information)
Allocation
Checking & Savings Accounts FDIC Insured & Sweep Accounts
85% Portfolio
Interest bearing active bank deposits — non FDIC insured collateralized by 60% Portfolio
110% of eligible securities I
Maximum
Restrictions
Maturity
Current /
Sweep Account:
On Demand
U.S. Treasuries
and/or GSE's
Current
$40 million
On Demand
perbank
Permissible Investments and Limitations
Maximum
Maximum
(See Appendix A for Additional Information)
Allocation
Maturity
Restrictions
$250,000,
Certificates of Deposit - FDIC Insured
60% Portfolio
5 Years
including interest
per institution
$250,000
Negotiable Certificates of Deposit — FDIC Insured 30% Portfolio
5 Years
including interest
per institution
$30,000,000
U.S. Treasury Bills, Notes and Bonds, and Government National 100% Portfolio
5 Years
maturing 3-10
Mortgage Association (GNMA) Securities
Yrs.
<=$30,000,000
maturing 3-10
Local Agency Bonds/California Local Agency Obligations 100% Portfolio
10 Years
Yrs.
Long term
"A, A2, A" or
better
U.S. Government Agency Securities and Federal Government Securities
(except collateralized mortgage obligations (CMO's) or structured notes
which contain embedded rate options):
- Federal National Mortgage Association (FNMA) $20,000,000
5 Years
- Federal Home Loan Bank Notes & Bonds (FHLB) $25,000,000
5 Years
- Federal Farm Credit Bank (FFCB) $30,000,000
5 Years
- Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000
....... ......
5 years
90 Days
$5,000,000 per
Prime Commercial Paper including Temporary Liquidity Guarantee 15% Portfolio
Program (TLGP)
issuer maximum.
Local Agency Investment Fund (LAIF) 30% Portfolio
Current
On Demand
$50 million
per account.
Money market mutual funds regulated by the SEC that consist only of US
Treasury Securities or GSE's and maintain a par value of $1 per share
20% Portfolio Current
On Demand
Maintain $1 per
share par value
$5,000,000 max
Corporate Notes
10% 3 Years
per issuer AA
rated or befter
$10,000,000 max
Corporate Notes - Temporary Liquidity Guarantee Program (TLGP)
20%
3 Years
per issuer, AA
rated or better.
Requires
Professionally Managed Account
10%
3 Years
City Council -
Approved RFP
Long -Term Scale
S&P A 1 AAA, AA +, AA, AA-, A+, A
Moody's P1 Aaa, Aal, Aa2, Aa3, Al, A2
Fitch AAA, AA +, AA, AA-, A+, A
1 Checking, Savings, and Sweep Accounts - The City will only maintain checking, savings,
and sweep accounts with FDIC insured financial institutions. As authorized by the City
Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account
with a $50,000 target balance may be maintained in conjunction with the checking
account.
In addition, the Treasurer may invest in an interest bearing active deposit account as
approved in Government Code Section 53632. The deposit account must be collateralized
with securities that are in accordance with Government Code Sections 53632.5(c). In
addition the market value of the collateralized securities must be maintained in accordance
9
with 53652 (a), and be held by a custodian in accordance with the requirements of
Government Code Section 53656. The proposition of the City's share of the deposit
account shall be determined in accordance with Government Code Section 53658.
2. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of
Deposit are fixed term investments which are required to be collateralized from 110% to
150% depending on the specific security pledged as collateral in accordance with
Government Code Section 53652. There are no portfolio limits on the amount or maturity
for this investment vehicle.
Collateralization will be required for Certificates of Deposits in excess of the FDIC insured
amount. The type of collateral is limited to City authorized investments. Collateral will
always be held by an independent third party from the institution that sells the Certificates
of Deposit to the City. Evidence of compliance with State Collateralization policies must
be supplied to the City and retained by the City Treasurer as follows:
A. Certificates of Deposits Insured by the FDIC: The City Treasurer may waive
collateralization of a deposit that is federally insured.
B. Certificates of Deposit in excess of FDIC Limits: The amount not federally insured
shall be 110% collateralized securities or 150% mortgages market value of that
amount of invested funds plus unpaid interest earnings.
The City's Investment Policy limits the percentage of Certificates of Deposit to 60% of the
portfolio.
10. The City does not allow investments in CDAR's.
3. Negotiable Certificates of Deposit - issued by a nationally or state -chartered bank, a
savings association or a federal association (as defined by Section 5102 of the Financial
Code), a state or federal credit union, or by a federally- or state- licensed branch of a
foreign bank. No more than 30% of the City's portfolio may be invested in negotiable
CDs.
U.S. Treasury Bills, Notes, and Bonds and Government NationMA�rt age Associat ons
(GNMA) securities — The City may invest in U.S. Treasury bills, notes, and bonds and
GNMA securities directly issued and backed by the full faith and credit of the U.S.
Government. The City's Investment Policy limits investments in U.S. Treasury issues and
GNMA's to 100% of the portfolio.
0� The City's Investment Policy does not allow investments in state indebtedness.
4. U.S. Government Agency Securities and Federal Government Securities — The City may
invest in securities issued by U.S. Government instrumentalities and agencies (commonly
referred to as government sponsored enterprises or GSE's). These securities are not
backed by the full faith and credit of the U.S. Government. Publicly owned GSE's include
Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation
(FHLMC) and Student Loan Marketing Association (SLMA). Non -publicly owned GSE's
include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal
Land Bank (FLB) and Federal Intermediate Credit Bank (FICB).
10
The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB
and FFCB. For Fiscal Year 2013/2014 2014/2015, the maximum face amount per issuer is
$20 million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In
addition, no more than 30% of the portfolio surplus may be invested in all GSE's combined
with a maximum $10 million face amount per purchase.
5. Prime Commercial Paper - As authorized in Government Code Section 53601 (g), a portion
of the City's portfolio may be invested in commercial paper of the highest rating (Al or
P1) as rated by Moody's or Standard and Poor's. There are a number of other
qualifications regarding investments in commercial paper based on the financial strength of
the corporation and the size of the investment. The City's Investment Policy permits
investments in commercial paper with the following limitations:
A. Maximum 15% of the portfolio.
B. Maximum maturity of 90 days.
C. Maximum of $5 million per issuer.
These limitations are more restrictive than the State code which allows amounts of 25%
of the total portfolio with maturities up to 270 days with no per -issuer limitations.
The City is also permitted to invest in commercial paper issued under the FDIC Temporary
Liquidity Guarantee Program subject to the aforementioned commercial paper limitations.
6. State Treasurer'§_�oqaI_Agency Investment Fund (LAIF) - As authorized in Government
Code Section 16429.1 and by LAW procedures, local government agencies are each
authorized to invest a maximum of $50 million per account in this investment program
administered by the California State Treasurer.
The City Treasurer may not invest more than $50 million per account in LAIF.
The City's investment in LAIF is allowable as long as the average maturity of its
investment portfolio does not exceed two years, unless specific approval is authorized by
the City Council. The City limits investment to 30% of the portfolio.
7. Money Market Mutual Funds - As authorized in Government Code Section 53601 (k), local
agencies are authorized to invest in shares of beneficial interest issued by diversified
management companies (mutual funds) in an amount not to exceed 20% of the agency's
portfolio. There are a number of other qualifications and restrictions regarding allowable
investments in corporate notes and shares of beneficial interest issued by mutual funds
which include 0 ) attaining the highest ranking or the highest letter and numerical rating
provided by not less than two of the three largest nationally recognized rating services, or
(2) having an investment advisor registered with the Securities and Exchange Commission
with not less than five years' experience investing in the securities and obligations and
with assets under management in excess of five hundred million dollars ($500,000,000).
The City's Investment Policy only allows investments in mutual funds that are money
market funds maintaining a par value of $1 per share that invest in direct issues of the
U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not
exceeding 90 days and the City limits such investments to 20% of the portfolio.
8. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies
may invest in corporate notes. The notes must be issued by corporations organized and
operating in the United States or by depository institutions licensed by the United States
11
or any other state and operating in the United States. The City's Investment Policy allows
investment in corporate notes authorized by the Government Code with the following
limitations:
0. Maturities shall not exceed three years from date of purchase;
01. Eligible notes shall be regularly quoted and traded in the marketplace;
00. Eligible notes shall be rated "AA" or better;
00. Total investment shall not exceed 10% of the portfolio for non -Temporary Liquidity
Guarantee Program (TLGP) Corporate Notes and 20% of the portfolio for TLGP
Corporate Notes; and
00. The maximum aggregate investment shall not exceed $5 million face amount for
each issuer.
This is more restrictive than the State code allowed amounts of 30% of the total portfolio
with maturities up to five years with no per -issuer limitations.
The City is also permitted to invest in corporate notes issued under the FDIC Temporary
Liquidity Guarantee Program subject to the aforementioned corporate note limitations,
except that corporate notes issued under the Temporary Liquidity Guarantee Program or
otherwise backed by the United States government shall be limited to 20% of the portfolio
and the maximum aggregate investment for such notes shall not exceed $10 million face
amount for each issuer.
9. Professionally Managed Account(s) - The City Treasurer may place up to 10% of the
portfolio with a professional portfolio management firm ("PPMF"). The PPMF will be
approved by the City Council based upon the City Treasurer's recommendation pursuant to
completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall
have:
(a) An established professional reputation for asset or investment management;
(b) Knowledge and working familiarity with State and Federal laws governing and
restricting the investment of public funds;
(c) Substantial experience providing investment management services to local public
agencies whose investment policies and portfolio size are similar to those of the
City;
(d) Professional liability (errors and omissions) insurance and fidelity bonding in such
amounts as are required by the City; and
(e) Registration with the Securities and Exchange Commission under the Investment
Advisers Act of 1940.
Before engagement by the City and except as may be specifically waived or revised, the
PPMF shall commit to adhere to the provisions of the City's Investment Policy with the
following exceptions:
(f) The PPMF may be granted the discretion to purchase and sell investment securities
in accordance with Appendix I of this Investment Policy;
(g) The PPMF is not required to adhere to the buy -and -hold policy of the City's
Investment Policy; and (h) The PPMF does not need City Manager or City
Treasurer approval to make permissible investments as detailed in column 8 of
Appendix H of this Investment Policy.
10, Local Agency Bonds and California Local Agency Obligations — The City may invest in
California local agency obligations pursuant to 56301 (a) and 53301 (e). 53601 (a) pertains
to investing in bonds issued by a local agency, department, board, agency or authority of
12
the local agency. 53601 (e) pertains to investing in bonds and other defined indebtedness
of a local agency or department, board, agency or authority of the local agency within the
State of California.
The City's Investment Policy limits investments in Local Agency Bonds and California
Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity.
In addition, the Agency obligations must be invested in the long term rating of A, A2, A or
better by S&P, Moody's or Fitch.
In the case of an initial public offering, including refinancings, the Treasurer may purchase
directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will
rely on the approved Broker/Dealers.
X1 INVESTMENT POOLS
There are three (3) types of investment pools:
0- State -run pools (e.g., LAIF);
0- Pools that are operated by a political subdivision where allowed by law and the political
subdivision is the trustee (e.g., County Pools); and
0- Pools that are operated for profit by third parties.
The City's Investment Policy permits investment only in pools authorized in Section X.
X11 PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain
appropriate evidence of the City's ownership of securities and other eligible investments. Such
custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or
seller only after receiving evidence that the City has legal, record ownership of the securities.
Even though ownership is evidenced in book -entry form rather than by actual certificates, this
procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of
securities.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments.
1 Pooled Investments - It is the general policy of the City to pool all available operating cash
of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency and La Quinta Financing and Housing Authorities and allocate interest earnings, in
the following order, as follows:
A. Payment to the General Fund of an amount equal to the total annual bank service
charges as incurred by the general fund for all operating funds as included in the
annual operating budget.
B, Payment to the General Fund of a management fee equal to 5% of the annual
pooled cash fund investment earnings.
13
C. Payment to each fund of an amount based on the average computerized
daily cash balance included in the common portfolio for the earning period.
2, Specific Investments - Specific investments purchased by a fund shall incur all earnings
and expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the following
objectives:
10- Safeguard assets;
0, The orderly and efficient conduct of its business, including adherence to management
policies;
0- Prevention or detection of errors and fraud;
0,- The accuracy and completeness of accounting records; and
1p- Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute assurance that the
City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable
assurance that management of the investment function meets the City's objectives.
The internal controls shall address the following:
1 Control of collusion. Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
2. Separation of transaction authority from accounting and record keeping. By separating the
person who authorizes or performs the transaction from the people who record or
otherwise account for the transaction, a separation of duties is achieved.
3. Custodial safekeeRing. Securities purchased from any bank or dealer including appropriate
collateral (as defined by State Law) shall be placed with an independent third party for
custodial safekeeping.
4. Avoidance of physical delivery securities. Book entry securities are much easier to
transfer and account for since actual delivery of a document never takes place. Delivered
securities must be properly safeguarded against loss or destruction. The potential for
fraud and loss increases with physically delivered securities.
5. Clear delegation of authority to subordinate staff members. Subordinate staff members
must have a clear understanding of their authority and responsibilities to avoid improper
actions. Clear delegation of authority also preserves the internal control structure that is
contingent on the various staff positions and their respective responsibilities as outlined in
the Segregation of Major Investment Responsibilities appendices.
6. Written confirmation or telephone transactions for investments and wire transfers. Dueto
the potential for error and improprieties arising from telephone transactions, all telephone
transactions shall be supported by written communications or electronic confirmations and
approved by the appropriate person. Written communications may be via fax if on
letterhead and the safekeeping institution has a list of authorized signatures. Fax
correspondence must be supported by evidence of verbal or written follow-up.
14
7. Development of a wire transfer agreement with the City's bank and third party custodian.
This agreement should outline the various controls, security provisions, and delineate
responsibilities of each party making and receiving wire transfers.
The System of Internal Controls developed by the City, shall be reviewed annually by the
independent auditor in connection with the annual audit of the City's Financial Statements.
The independent auditor's letter on internal control over financial reporting and compliance as it
pertains to cash and investments, if any, shall be directed to the City Manager who will direct the
City Treasurer to provide a written response to the independent auditor's letter. The auditor's
letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be
provided to the City's Investment Advisory Board for their consideration. Following the
completion of each annual audit, the independent auditor shall meet with the Investment Advisory
Board and discuss the auditing procedures performed and the review of internal controls for cash
and investment activities.
See Appendix D, "Segregation of Major Investment Responsibilities."
XV REPORTING STANDARDS
The City Treasurer shall submit a monthly Treasurers Report to the City Council and the
Investment Advisory Board that includes all cash and investments under the authority of the
Treasurer.
The Treasurer's Report shall summarize cash and investment activity and changes in balances and
include the following:
No. A certification by the City Treasurer;
00. A listing of purchases and sales/maturities of investments;
0. Cash and Investments categorized by authorized investments, except for LAIF
which will be provided quarterly and show yield and maturity;
10. Comparison of month end actual holdings to Investment Policy limitations;
No. Current year and prior year monthly history of cash and investments for trend
analysis;
0. Balance Sheet;
00. Distribution of cash and investment balances by fund;
10. A year to date historical cash flow analysis and projection for the next six months;
and
ON. A two-year list of historical interest rates.
XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY
The City's Investment Policy does not apply to the following:
ON. Cash and Investments raised from Conduit Debt Financing;
00. Funds held in trust in the City's name in pension or other post -retirement benefit
programs;
00. Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects;
No. Short or long term loans made to other entities by the City or Agency; and
15
Short term (Due to/from) or long term (Advances from/to) obligations made
either between the City and its funds or between the City and Agency.
XVII INVESTMENT OF BOND PROCEEDS
The City's Investment Policy shall govern bond proceeds and bond reserve fund investments.
California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in
accordance with bond indenture provisions which shall be structured in accordance with the
City's Investment Policy.
Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage
calculations as required and return excess earnings to the US Treasury from investments of
proceeds of bond issues sold after the effective date of this law. These arbitrage calculations
may be contracted with an outside source to provide the necessary technical assistance to
comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept
segregated from other funds and records will be kept in a fashion to facilitate the calculations.
The City's investment position relative to the new arbitrage restrictions is to continue pursuing
the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It
is the City's position to continue maximization of yield and to rebate excess earnings, if
necessary.
XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) is a standing board composed of five members from the
public that are appointed by the City Council. Background information will be requested and
potential candidates must agree to a background check and verification. On an annual basis, in
conjunction with the Political Reform Act disclosure statutes, or at any time if a change in
circumstances warrants, each board member will provide the City Council with a disclosure
statement which identifies any matters that have a bearing on the appropriateness of that
member's service on the board. All board members shall report annually to the City Clerk on
Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be,
or have the appearance of, a conflict of interest.
The IAB must meet at least quarterly, but usually meets monthly, to:
1 Review at least annually the City's Investment Policy and recommend appropriate
changes;
2� Review monthly treasury report and note compliance with the Investment Policy and
adequacy of cash and investments for anticipated obligations;
3. Receive and consider other reports provided by the City Treasurer;
4. Meet with the independent auditor after completion of the annual audit of the City's
financial statements, and receive and consider the auditor's comments on auditing
procedures, internal controls and findings for cash and investment activities; and
5. Serve as a resource for the City Treasurer on matters such as proposed investments,
internal controls, use or change of financial institutions, custodians, brokers and dealers.
16
The IAB will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting. See Appendix B: "Investment Advisory Board
Provisions."
XIX INVESTMENT -POILICY ADOPTION
The City's Investment Policy will be reviewed annually by the City's Investment Advisory Board
and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with
any revisions to the City Manager and City Attorney for their review and comment. A joint
meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City
Treasurer to review the Investment Policy and any comments prior to submission to the City
Council for their consideration.
The Investment Policy shall be adopted by resolution of the City Council annually before the end
of June of each year.
17
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Appendix B
City of La Quinta Municipal Code
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (the"board") is a standing board composed of five (5)
members from the public that are appointed by city council.
C. Applicants for the board should have a background in finance, preferably with knowledge
and/or experience in markets, controls and accounting for securities. Background information will
be requested and potential candidates must agree to a background check and verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City Council
with a disclosure statement which identifies any matters that have a bearing on the
appropriateness of that member's service on the board. Such matters may include, but are not
limited to, changes in employment, changes in residence, or changes in clients.
E. To promote continuity, the expiration of the terms of the members of the board shall be
staggered. The term of service is three years, with one or two terms expiring each year.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates will
be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
A. The principal functions of the Board are: (1) review at least annually the City's Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report and note
compliance with the Investment Policy and adequacy of cash and investments for anticipated
obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with
the independent auditor after completion of the annual audit of the City's financial statements, and
receive and consider the auditor's comments on auditing procedures, internal controls, and findings
for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions, custodians,
brokers and dealers.
B. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
KW1
Appendix C
City of La Quinta Municipal Code
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide for
their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635 of
the Government Code, as said sections now read or may hereafter be amended, from
moneys in his custody which are not required for the immediate necessities of the city
and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part),
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys have
been invested pursuant to this chapter, so that the proceeds may, as appropriate, be
applied to the purchase for which the original purchase money may have been designated
or placed in the city treasury. (Ord.2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be cancelled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
3.08.050 Reports.
21
The city treasurer shall make a monthly report to the city council of all investments
made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the terms
of any state law, including but not limited to Section 53608 of the Government Code as
it now reads or may hereafter be amended. In accordance with said section, the city
treasurer shall take from the institution or depository a receipt for the securities so
deposited and shall not be responsible for the securities delivered to and receipted for by
the institution or depository until they are withdrawn therefrom by the city treasurer.
(Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in accordance
with Section 36523 and 26524 of the Government code and any other applicable
provisions of law. (Ord. 2 § 1 (part), 1982)
22
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsible Parties
Develop and Recommend Modifications Investment Advisory Board
to City's Formal Investment Policy and City Treasurer
Review City's Investment Policy City Manager
and Recommend City Council Action and City Attorney
Adopt Formal Investment Policy City Council
Implement Formal Investment Policy City Treasurer
Review Financial Institutions & Select Investments City Treasurer
Acknowledge Investment Selections City Manager or his/her
designee
Execute Investment transactions City Treasurer or City Manager
Confirm Wires (if applicable) Accounting Manager or
Financial Services Assistant
Record Investment Transactions in City's Accounting Manager or
Accounting Records Financial Services Assistant
Investment Verification (match broker confirmation City Treasurer and Financial
to City investment records) Services Assistant
Reconcile Investment Records
to Accounting Records and Bank Statements Financial Services Assistant
Reconcile Investment Records
to Treasurers Report of Investments Accounting Manager
Security of Investments at City Accounting Manager or Senior
Secretary
Security of Investments outside City Third Party Custodian
Review Internal Control Procedures External Auditor
23
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1 - Banking Services Wells Fargo Bank, Government Services,
Los Angeles, CA (Banking Services)
Rabobank N.A., Government Banking
Group, Roseville, CA (Collateralized Bank
Deposits)
2. Custodian Services Bank of New York/Mellon
3. Deferred Compensation International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services Banc of America Securities/Merrill Lynch
Morgan Stanley
CitiGroup
First Empire Securities
5. Government Pool State of California Local Agency
Investment Fund
City of La Quinta Account
6. Bond Trustees
1996 Lease Revenue Bonds
- US Bank
1998 RDA Project Area 1 &2
- US Bank
2001 RDA Project Area 1 -
US Bank
2002 RDA Project Area 1 -
US Bank
2003 RDA Project Area 1 -
US Bank
2004 Local Agency Rev - US
Bank
2011 RDA Project Area 2 -
US Bank
2011 Fin Auth Housing 1 &2
- US Bank
Assessment Districts - US Bank
No Changes to this listing may be made without City Council approval
24
1 .
2.
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
Name of Firm:
Address:
Appendix F
3� Telephone:
4. Broker's Representative to the City (attach resume):
Name:
Title: —
Telephone:
5. Manager/Partner-in-charge (attach resume):
Name:
Title:
Telephone:
6. List all personnel who will be trading with or quoting securities to City employees (attach
resume)
Name:
Title:
Telephone:
7. Which of the above personnel have read the City's Investment Policy?
8. Which instruments are offered regularly by your local office? (Must equal 100%)
% U.S. Treasuries —% Repos
% BA's % Reverse Repos
% Commercial Paper % CMO's
% CD's Derivatives
% Mutual Funds % Stocks/Equities
Agencies (specify): % Other (specify):
9. References -- Please identify your most directly comparable public sector clients in our
geographical area.
Entity Entity
25
Contact Contact
Telephone Telephone
Client Since Client Since
10. Have any of your clients ever sustained a loss on a securities transaction arising from a
misunderstanding or misrepresentation of the risk characteristics of the instrument? If so,
explain.
11. Has your firm or your local office ever been subject to a regulatory or state/ federal
agency investigation for alleged improper, fraudulent, disreputable or unfair activities
related to the sale of securities? Have any of your employees been so investigated? If
so, explain.
12. Has a client ever claimed in writing that you were responsible for an investment loss?
Yes-- - No If yes, please provide action taken
13
...........
Has a client ever claimed in writing that your firm was responsible for an investment
loss? Yes No If yes, please provide action taken
Do you have any current or pending complaints that are unreported to FINRA?
Yes No If yes, please provide action taken
Does your firm have any current, or pending complaints that are unreported to FINRA?
Yes. No- -, If yes, please provide action taken
Explain your clearing and safekeeping procedures, custody and delivery process.
Who audits these fiduciary responsibilities?
26
Latest Audit Report Date
14. How many and what percentage of your transactions failed?
Last month? % $
Last year? % $
15. Describe the method your firm would use to establish capital trading limits for the City of
La Quinta.
16. Is your firm a member in the S.I.P.C. insurance program? Yes
If yes, explain primary and excess coverage and carriers.
What portfolio information, if any, do you require from your clients?
17
IN
19
20
What reports and transaction confirmations or any other research publications will the City
receive? ----
Does your firm offer investment training to your clients? Yes -
Does your firm have professional liability insurance? Yes -
If yes, please provide the insurance carrier, limits and expiration date.
No-
No-
21. Please list your FINRA/NASD Registration Number
22. Do you have any relatives who work at the City of La Quinta?
Yes- No If yes, Name and Department
23. Do you maintain an office in California? Yes No-
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25, Please enclose the following:
0- Latest audited financial statements;
0- Samples of reports, transaction confirmations and any other research/publications the
City will receive;
0- Samples of research reports and/or publications that your firm regularly provides to
clients; and
10- Complete schedule of fees and charges for various transactions.
27
'CERTIFICATION'
I hereby certify that I have personally read the Statement of Investment Policy of the City of La
Quinta, and have implemented reasonable procedures and a system of controls designed to
preclude imprudent investment activities arising out of transactions conducted between our firm
and the City of La Quinta. All sales personnel will be routinely informed of the City's investment
objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the
City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable
risks associated with financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all background
checks.
Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of
my knowledge.
Broker Representative
Date
Title
Sales Manager and/or Managing Partner*
Date
Title
M]
Appendix G
Request for Proposals
Professional Portfolio Management Firm
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the
provision of a discretionary investment management services for City of La Quinta, CA. The
portfolio to be managed of the invested assets is will be approximately 10% of the City's
investment portfolio and will be invested between 0 — 3 years.
The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and
the City of La Quinta, CA's investment policy. A copy of the investment policy is attached for
your information.
Questions regarding this RFP should be directed to:
Name:
Title:
City of:
Address:
City, State, Zip Code
Phone Number:
Robbeyn Bird
Finance Director/Treasurer
La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
(760)777-7150
1. CRITERIA FOR EVALUATION AND SELECTION
• Experience of the firm in providing services to public sector entities of similar size
and with similar investment objectives;
• Professional experience and qualifications of the individuals assigned to the
account;
Portfolio management resources, investment philosophy and approach;
Responsiveness to the RFP, communicating an understanding of the overall
program and services required;
Reporting capabilities;
Fees.
11. SELECTION TIMETABLE
A. [Month, Day and Year] Proposals due by [Time] PST.
B. [Month, Day and Year] Proposals evaluated: to be determined
C. [Month, Day and Year] [City of La Quinta, CA] [Board/Council] approves selection
and awards contract.
Ill. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
29
1 Describe your organization, date founded, ownership and other business
affiliations. Provide number and location of affiliated offices. Specify the number
of years your organization has provided investment management service.
2. Describe your firm's revenue sources (e.g., investment management, institutional
research, etc.) and comment on your firm's financial condition.
3, Within the past three years, have there been any significant developments in your
organization (e.g., changes in ownership, new business ventures)? Do you expect
any changes in the near future?
4, Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation
involving your organization, any officer, or employee at any time in the last ten
years.
5. Describe the firm's fiduciary liability and/or errors and omissions insurance
coverage. Include dollar amount of coverage.
B. Personnel
C
Governmental
1 . Identify the number of professionals employed by your firm by classification.
2. Provide an organization chart showing function, positions, and titles of all the
professionals in your organization.
3. Provide biographical information on investment professionals that will be involved
in the decision -making process for our portfolio, including number of years at your
firm. Identify the person who will be the primary portfolio manager assigned to the
account.
4. Describe your firm's compensation policies for investment professionals and
address any incentive compensation programs.
Assets Under Management
1. Summarize your institutional investment management asset totals by category for
your latest reporting period in the following table:
Governmental Pension
Non Governmental
Pension
Other Restrictive
Number Operating Funds Number of Funds
of Clients Clients
$ N/A N/A
$ N/A N/A
M
Corporate $ N/A N/A
High Net Worth Client $ N/A N/A
Endowmental/Foun- $ N/A N/A
clation
2. Provide the number of separate accounts whose portfolios consist of operating
funds.
3. List in the following table the percentage by market value of aggregate assets
under all governmental accounts under management for your latest reporting
period:
Type of Asset Percent by Market
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA -AA
Corporate securities rated A
Corporate securities rated BBB or
lower
Other
(specify
4. Describe the procedures that your firm has in place to address the potential or
actual credit downgrade of an issuer and to disclose and advise a client of the
situation.
5. Provide data on account/asset growth over the past five years. Indicate the
number of government accounts gained and the number of government accounts
lost.
6. List your five governmental largest clients. Identify those that are exclusively
operating fund relationships and/or those that are other relationships (e.g., bond
fund, retirement fund).
7. Provide a copy of the firm's Form ADV, Parts I and 11 (including all schedules).
8. Provide proof of State of California Registration, if your firm is not eligible for SEC
registration.
9. Provide a sample contract for services.
31
D. Philosophy/Approach
1 Describe your firm's investment philosophy for public clients, including your firm's
philosophy regarding average duration, maturity, investment types, credit quality,
and yield.
2. Describe in detail your investment process, as you would apply it to City of La
Quinta, CA's portfolio.
3. What are the primary strategies for adding value to portfolios?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. Describe in detail your process of credit risk management, including how you
analyze credit quality, monitor credits on an ongoing basis, and report credit to
governmental accounts.
6. Describe your firm's trading methodology.
7. Describe your firm's decision -making process in terms of structure, committees,
membership, meeting frequency, responsibilities, integration of research ideas, and
portfolio management.
8. Describe your research capabilities as they would pertain to governmental
accounts. What types of analysis do you use?
9. Describe the firm's approach to managing relationships with the broker -dealer
community.
E. Portfolio Management
1 . Are portfolios managed by teams or by one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City of La
Quinta, CA?
4. How frequently are you willing to meet with us?
5. Describe procedures used to ensure that portfolios comply with client investment
objectives, policies, and bond resolutions.
F. Fees Charged
1 . Please include a copy of your firm's fee schedule applicable to this RFP.
2, Identify any expenses that would not be covered through this fee structure and
would be required in order to implement the firm's program.
32
3. Is there a minimum annual fee?
G. Performance Reporting
1 . Please report on all accounts under $100 million.
2. Please provide performance history for governmental accounts for the last five
years.
3. Please provide risk measurements for governmental accounts for the last five
years.
4. Indicate whether your returns are calculated and compiled in accordance with
the Association for Investment Management and Research (AIMR/CFA Institute)
standards.
5, Do your reports conform to the State of California reporting standards?, Are you
willing to customize your reports to meet our specifications?
6� How will you notify us of investment transactions?
7. Are confirmations of investment transactions sent directly by the broker/dealer to
the client?
8. Do your reports include rating information on investments which is required by
GAS13 40?
H. References
Provide a list of at least five (5) client references in California. References should be
public agencies with portfolio size and investment objectives similar to City of La Quinta,
CA. Include length of time managing the assets, contact name, and phone number.
1. Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to the
[Board/Councill's approval of any agreement for services.
J. Submittal of proposals
Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing
the caption RFP for (City of La Quinta, CA) and addressed to:
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: Robbeyn Bird, Finance Director/Treasurer
33
2. Proposal must be received no later than [Time] PST on [Month, Day, and Year].
3, Proposals should be verified before submission. The City of La Quinta, CA shall
not be responsible for errors or omissions on the part of the respondent in
preparation of a proposal. The City of La Quinta, CA reserves the right to reject
any and all proposals, to wave any irregularities, or informalities in the
proposals, and to negotiate modifications to any proposal.
Enclosures: Investment Policy
Treasurers Report
34
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Appendix I
Investment Management Process and Risk
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee
each person, treasurer, or governing body authorized to make investment decisions on behalf of local
agencies. As trustees are subject to the prudent investor standard. These persons shall act with care,
skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting,
purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates
that the primary objective of any person investing public funds is to safeguard principal; secondly, to
meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds
(Government Code Section 27000.5 specifies the same objectives for county treasurers and board of
supervisors).
Risk is inherent throughout the investment process. There is investment risk associated with any
investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to
overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure
of the insurer of a security. The market value of a security varies inversely with the level of interest
rates. If an investor is required to sell an investment with a five percent yield in a comparable seven
percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on
the amount of time until maturity.
Purchasing certain allowable securities with a maturity of greater than five years requires approval of
the governing board (see Government Code Section 53601). Part of that approval process involves
assessing and disclosing the risk and possible volatility of longer -term investments
Another element of market risk is liquidity risk. Instruments with unique call features or special
structures, or those issued by little known companies, are examples of "story bonds" and are often
thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more
difficult and, consequently, the securities' marketability and price are discounted. However, under
certain market conditions, gains are also possible with these types of securities.
Default risk represents the possibility that the borrower may be unable to repay the obligation as
scheduled. Generally, securities issued by the federal government and its agencies are considered the
most secure, while securities issued by private corporations or negotiable certificates of deposit issued
by commercial banks have a greater degree of risk. Securities with additional credit enhancements,
such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are
somewhere between the two on the risk spectrum.
The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased
with the intent and capacity to hold that security until maturity. At times, market forces or operations
may dictate swapping one security for another or selling a security before maturity. Continuous analysis
and fine tuning of the investment portfolio are considered prudent investment management.
The Government Code contains specific provisions regarding the types of investments and practices
permitted after considering the broad requirement of preserving principal and maintaining liquidity before
seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment
instruments to better ensure a prudently managed portfolio worthy of public trust.
Chapter 11. Fund Management
Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission
36
Appendix J
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or
Government -sponsored enterprises.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill or
exchange accepted by a bank or trust company.
The accepting institution guarantees payment of
the bill, as well as the issuer.
BID: The price offered by a buyer of securities.
(When you are selling securities, you ask for a
bid.) See Offer.
BROKER: A broker brings buyers and sellers
together for a commission.
CERTIFICATE OF DEPOSIT ICD): A time deposit
with a specific maturity evidenced by a
certificate. Large-denom i nation CD's are typically
negotiable.
COLLATERAL: Securities, evidence of deposit or
other property which a borrower pledges to
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits of
public monies.
COMMERCIAL PAPER: Short-term unsecured
promissory notes issued by a corporation to raise
working capital. These negotiable instruments
are purchased at a discount to par value or at par
value with interest bearing. Commercial paper is
issued by corporations such as General Motors
Acceptance Corporation, IBM, Bank America, etc.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR): The official annual report for the City of
La Quinta. It includes five combined statements
for each individual fund and account group
prepared in conformity with GAAP. It also
includes supporting schedules necessary to
demonstrate compliance with finance -related
legal and contractual provisions-, extensive
introductory material, and a detailed Statistical
Section.
CONDUIT FINANCING: A form of Financing in
which a government or a government agency
lends its name to a bond issue, although it is
acting only as a conduit between a specific project
and bond holders. The bond holders can look only
to the revenues from the project being financed
for repayment and not to the government or
agency whose name appears on the bond.
COUPON: (a) The annual rate of interest that a
bond's issuer promises to pay the bondholder on
the bond's face value. (b) A certificate attached
to a bond evidencing interest due on a payment
date.
DEALER: A dealer, as opposed to a broker, acts as
a principal in all transactions, buying and selling
for his own account.
DEBENTURE: A bond secured only by the general
credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two
methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
versus payment is delivery of securities with an
exchange of money for the securities. Delivery
versus receipt is delivery of securities with an
exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose
return profile is linked to, or derived from, the
movement of one or more underlying index or
security, and may include a leveraging factor, or
(2) financial contracts based upon notional
amounts whose value is derived from an
underlying index or security (interest rates, foreign
exchange rates, equities or commodities).
DISCOUNT: The difference between the cost price
of a security and its maturity when quoted at
37
lower than face value. A security selling below
original offering price shortly after sale also is
considered to be at a discount.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a
discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds
among a variety of securities offering
independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the
Federal government set up to supply credit to
various classes of institutions and individuals,
e.g., S&L's, small business firms, students,
farmers, farm cooperatives, and exporters.
1
2
_FNMAs (Federal National MoLtgage
Association) - Like GNMA was chartered
under the Federal National Mortgage
Association Act in 1938. FNMA is a federal
corporation working under the auspices of the
Department of Housing and Urban
Development (HUD). It is the largest single
provider of residential mortgage funds in the
United States. Fannie Mae, as the corporation
is called, is a private stockholder -owned
corporation. The corporation's purchases
include a variety of adjustable mortgages and
second loans, in addition to fixed-rate
mortgages. FNMA's securities are also highly
liquid and are widely accepted. FNMA
assumes and guarantees that all security
holders will receive timely payment of
principal and interest.
FHLBs (Federal Home Loan Bank Notes and
Bonds) - Issued by the Federal Home Loan
Bank System to help finance the housing
industry. The notes and bonds provide
liquidity and home mortgage credit to savings
and loan associations, mutual savings banks,
cooperative banks, insurance companies, and
mortgage -lending institutions. They are
issued irregularly for various maturities. The
minimum denomination is $5,000. The notes
are issued with maturities of less than one
year and interest is paid at maturity.
3. FLBs (Federal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at
irregular times for various maturities ranging
from a few months to ten years. The
minimum denomination is$ 1,000. They carry
semi-annual coupons. Interest is calculated on
a 360-day, 30 day month basis.
4. FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
intermediate term needs of farmers and the
national agricultural industry. They are issued
monthly with three- and six-month maturities.
The FFCB issues larger issues (one to ten
year) on a periodic basis. These issues are
highly liquid.
5. FI.CBs (Federal Intermediate. Credit Bank
Debentures) - Loans to lending institutions
used to finance the short-term and
intermediate needs of farmers, such as
seasonal production. They are usually issued
monthly in minimum denominations of $3,000
with a nine -month maturity. Interest is
payable at maturity and is calculated on a 360-
day, 30-day month basis.
6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
established in 1970 to provide a secondary
market for conventional home mortgages.
Mortgages are purchased solely from the
Federal Home Loan Bank System member
lending institutions whose deposits are insured
by agencies of the United States Government.
They are issued for various maturities and in
minimum denominations of $10,000. Principal
and interest is paid monthly. Other federal
agency issues are Small Business
Administration notes (SBA's), Government
National Mortgage Association notes
(GNMA's), Tennessee Valley Authority notes
(TVA's), and Student Loan Association notes
(SALLIE-MAE's).
FEDERAL DEPOSIT INSURANCE CORPORATION
(FDIC): A federal agency that insures bank
deposits, currently up to $250,000 per deposit
through December 31, 2013.
99
FEDERAL FUNDS RATE: The rate of interest at
which Fed funds are traded. This rate is currently
pegged by the Federal Reserve through open -
market operations.
FEDERAL HOME LOAN BANKS (FHLB):
Government sponsored wholesale banks
(currently 12 regional banks) which lend funds
and provide correspondent banking services to
member commercial banks, thrift institutions,
credit unions and insurance companies. The
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase
stock in their district Bank.
FEDERAL OPEN MARKET COMMITTEE (FOMC):
Consists of seven members of the Federal
Reserve Board and five of the twelve Federal
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent
member, while the other Presidents serve on a
rotating basis. The Committee periodically meets
to set Federal Reserve guidelines regarding
purchases and sales of Government Securities in
the open market as a means of influencing the
volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and
consisting of a seven member Board of Governors
in Washington, D.C., 12 regional banks and about
5,700 commercial banks that are members of the
system.
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations,
and other institutions. Security holder is
protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed
by the FHA, VA or FMHM mortgages. The term
"pass-throughs" is often used to describe Ginnie
Maes.
LAIF (Local Agency Investment Fund) - A special
fund in the State Treasury which local agencies
may use to deposit funds for investment. There
is no minimum investment period and the
minimum transaction is $5,000, in multiples of
$1,000 above that, with a maximum balance of
$50,000,000 for any agency. The City is
restricted to a maximum of ten transactions per
month. It offers high liquidity because deposits
can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
agencies participating on a proportionate share
basis determined by the amounts deposited and
the length of time they are deposited. Interest is
paid quarterly. The State retains an amount for
reasonable costs of making the investments, not
to exceed one-half of one percent of the earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size
can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP):
The aggregate of all funds from political
subdivisions that are placed in the custody of the
State Treasurer for investment and reinvestment
MARKET VALUE: The price at which a security is
trading and could presumably be purchased or
sold.
MASTER REPURCHASE AGREEMENT: A written
contract covering all future transactions between
the parties to repurchase --reverse repurchase
agreements that establishes each party's rights in
the transactions. A master agreement will often
specify, among other things, the right of the
buyer -lender to liquidate the underlying securities
in the event of default by the seller -borrower.
MATURITY: The date upon which the principal or
stated value of an investment becomes due and
payable
MONEY MARKET: The market in which short-term
debt instruments (bills, commercial paper,
bankers' acceptances, etc.) are issued and traded.
OFFER: The price asked by a seller of securities.
(When you are buying securities, you ask for an
offer.) See Asked and Bid.
OPEN MARKET OPERATIONS: Purchases and
sales of government and certain other securities in
the open market by the New York Federal Reserve
39
Bank as directed by the FOMC in order to
influence the volume of money and credit in the
economy. Purchases inject reserves into the
bank system and stimulate growth of money and
credit; sales have the opposite effect. Open
market operations are the Federal Reserve's most
important and most flexible monetary policy tool.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer,
including Bond Proceeds.
PRIMARY DEALER: A group of government
securities dealers who submit daily reports of
market activity and positions and monthly
financial statements to the Federal Reserve Bank
of New York and are subject to its informal
oversight. Primary dealers include Securities and
Exchange Commission (SEC) -registered securities
broker -dealers, banks and a few unregulated
firms.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state,
which has segregated for the benefit of the
commission eligible collateral having a value of
not less than its maximum liability and which has
been approved by the Public Deposit Protection
Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A
holder of securities sells these securities to an
investor with an agreement to repurchase them
at a fixed price on a fixed date. The security
"buyer" in effect lends the "seller" money for the
period of the agreement, and the terms of the
agreement are structured to compensate him for
this. Dealers use RP extensively to finance their
positions. Exception: When the Fed is said to be
doing RP, it is lending money that is increasing
bank reserves.
REVERSE REPURCHASE AGREEMENTS (RRP or
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date.
The security "buyer" in effect lends the"seller"
money for the period of the agreement, and the
terms of the agreement are structured to
compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered
by banks for a fee whereby securities and
valuables of all types and descriptions are held in
the bank's vaults for protection.
SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency
created by Congress to protect investors in
securities transactions by administering securities
legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB, FNMA,
SLMA, etc.) and Corporations which have
imbedded options (e.g., call features, step-up
coupons, floating rate coupons, and derivative -
based returns) into their debt structure. Their
market performance is impacted by the fluctuation
of interest rates, the volatility of the imbedded
options and shifts in the shape of the yield curve.
SURPLUS FUNDS: Section 53601 of the California
Government Code defines surplus funds as any
money not required for immediate necessities of
the local agency. The City has defined immediate
necessities to be payment due within one week.
TREASURY BILLS: A non -interest bearing discount
security issued by the U.S. Treasury to finance the
national debt. Most bills are issued to mature in
three months, six months or one year.
TREASURY BONDS: Long-term coupon -bearing
U. S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities of more than 10 years.
EN
TREASURY NOTES: Medium -term coupon -bearing
U. S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker -dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY
is the current income yield minus any premium
above par or plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.
41
118
Tar Ot 4 a"
�SA/IWFA MEETING DATE: June 18, 2013 AGENDA CATEGORY:
ITEM TITLE: INVESTMENT ADVISORY BOARD WORK BUSINESS SESSION:
PLAN FOR FISCAL YEAR 2013/2014
CONSENT CALENDAR: 7
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Approve the Investment Advisory Board Work Plan for Fiscal Year 2013/2014.
EXECUTIVE SUMMARY:
The work plan for the Investment Advisory Board is set forth in the City's Municipal
Code Section 2.70.030 as outlined below. There are no recommended changes for
the 2013/2014 work plan.
FISCAL IMPACT:
Fiscal implications consist of Board Members meeting expenses, budgeted at $4,500,
and staff support time.
BACK GROUN D/ANALYSIS:
Municipal Code Section 2.70.030 sets forth the work plan items for the Investment
Advisory Board for each year as follows:
The principal functions of the Board are: (1) review at least annually the city's
investment policy and recommend appropriate changes; (2) review monthly treasury
report and note compliance with the investment policy and adequacy of cash and
investments for anticipated obligations; (3) receive and consider other reports provided
by the city treasurer; (4) meet with the independent auditor after completion of the
annual audit of the city's financial statements, and receive and consider the auditor's
comments on auditing procedures, internal controls, and findings for cash and
118
119
investment activities, and (5) serve as a resource for the city treasurer on matters
such
as proposed investments, internal controls, use of change of financial institutions,
custodians, brokers and dealers.
The Investment Advisory Board met on June 12, 2013 and is not recommending that
any additional Work Plan Items be added to those outlined in the Municipal Code.
ALTERNATIVES:
None.
Report prepared by: Robbeyn Bird, Finance Director
Report approved for submission by: Frank J. Spevacek, City Manager
INVESTMENT ADVISORY BOARD
Meeting Date: March 12, 2014
TITLE:
City of La Quinta Fiscal Year 2012/2013
Audited Financial Report
BACKGROUND:
Correspondence & Written
Material Item 1
Mr. Bryan Gruber, Partner with Lance Soll & Lunghard, LLP, CPA's, will review the
City Cash and Investment presented in the report and answer Board Members
questions.
RECOMMENDATION:
Information item only.
Patrick GrAn, lni*dri��finance Director
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30,2013
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2013
Prepared By
FINANCE DEPARTMENT
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2013
TABLE OF CONTENTS
Page
Numbe
INTRODUCTORY SECTION
Letterof Transmittal .............................................................................. .................................... ............ � i
List of Principal Officials ................................................................................................. - .................. _ Vill
OrganizationalChart ............................ ................................................................................................. ix
Certificate of Achievement for Excellence in Financial Reporting (GFOA) ............................................. x
FINANCIAL SECTION
Independent Auditors' Report .................................................................................... ................. _.. 1
Management's Discussion and Analysis ....................................................... ......... ..................... ......... 5
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof Net Position ............................................................................................................... 17
Statementof Activities .................................................................................................................... 18
Fund Financial Statements:
Balance Sheet — Governmental Funds .......................................................................................... 20
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ..................................................................................................... 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 Position — Proprietary Funds .................................................... ........................ �29
Statement of Revenues, Expenses and Changes in Fund Net Position —
ProprietaryFunds ..................................................................................................... _ ................... 31
Statement of Cash Flows — Proprietary Funds ........................................................... — ........ ...... _32
Statement of Fiduciary Net Position - Fiduciary Funds ... .................... ................ ...... ........... _.. 34
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2013
TABLE OF CONTENTS
Page
Number
Statement of Changes in Fiduciary Net Position - 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 .................................... .................... - ............
90
Budgetary Comparison Schedules — Special Revenue Funds
StateGas Tax .............................................................. __ .............. .................................
97
Library............................................................ ............................................................. ..........
�98
FederalAssistance ................................................. - ................................. ................ .............
99
SLEBG.................................................................. ..................... ................... I ........... ..........
100
IndianGaming ................................................ ....... ....................................... .......................
101
Lightingand Landscaping .............. ....................................................... — ............................
102
Quimby...................................................................................................................................
103
PublicSafety ........................................... i ..............................................................................
104
ArtIn Public Places ...................... .............................. ..........................................................
105
SouthCoast Air Quality .................................................................................... .................
106
AB939 ...................................... ............ .................................................... ..........................
107
LawEnforcement ........... ............ ................................. ................... ..................... ............. �108
Proposition1 B Fund ................................................................. .............. ..............................
109
JusticeAssistance Grant ........................................................................ .......................... ....
110
MeasureA ................................................................ ....................... .....................................
Ill
Transportation Uniform Mitigation Fee ...................................... . ...........................................
112
HousingAuthority PA No. 1 .......................... ........ ...................................... ........................
113
Budgetary Comparison Schedules — Capital Projects Funds
CapitalImprovement .............. ............................................................. .................................
114
CivicCenter ................................. ........... .... _ ............. ................. ......... _ ...........................
115
Infrastructure........................................................................... ..............................................
116
Transportation........................................................................................................................
117
Parksand Recreation ............................ ....................... ........................................................
118
LibraryDevelopment .................... ............................... .................................... ....................
119
CommunityCenter ................. ................ ........ ................................................... .................
120
StreetFacility .......... ..................................................................................... ...... ..................
121
ParkFacility .................................................................................................... .......................
122
FireFacility ............................ ............. ....................................................................... ..........
123
Budgetary Comparison Schedules — Debt Service Funds
FinancingAuthority .................................................................... ................. _ ................... _'.
124
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2013
TABLE OF CONTENTS
Page
Number
Combining Statement of Net Position — Internal Service Funds ..... ........................ ................... 126
Combining Statement of Revenues, Expenses and Changes
in Fund Net Position — Internal Service Funds ............................................................................. 127
Combining Statement of Cash Flows — Internal Service Funds .......... ...... ................................. 128
Combining Statement of Net Position — All Agency Funds ............................ ........... ................. 130
Combining Statement of Changes in Assets and Liabilities — All Agency Funds ......................... 131
STATISTICAL SECTION
Net Position by Component ........................................................................................ ................. 134
Changesin Net Position ......................................................... ......... ...........................................
136
Changes in Net Position — Governmental Activities .....................................................................
138
Changes in Net Position — Business -type Activities .....................................................................
141
Fund Balances of Governmental Funds ................. ........ .................. ...... ................. ...... .....
142
Changes in Fund Balances of Governmental Funds ....................................................................
144
Assessed Value and Estimated Actual Value of Taxable Property ..............................................
147
Direct and Overlapping Property Tax Rates .................................................... ............................
148
Principal Property Taxpayers ................................................................ _ ....................................
150
Property Tax Levies and Collections .......... . ........ ................................ .................. ...... ....... ....
151
Ratios of Outstanding Debt by Type ............................... ............... _.— .......................................
A52
Ratio of General Bonded Debt Outstanding ................ ................................................................
154
Direct and Overlapping Debt .......................................................................................................
155
Legal Debt Margin Information ................................. ..................................................................
A56
Pledged -Revenue Coverage ........................................................ ...... ................. ........ __ ........
158
Demographic and Economic Statistics... ...................................................... ...... ................ ......
159
PrincipalEmployers ......................................................................................................................
160
Full-time City Employees .............................. w ............................................................ .............. _..
161
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2013
TABLE OF CONTENTS
Page
Number
OperatingIndicators ..................................................................................................................... 162
CapitalAsset Statistics ................................................................................................................. 163
Schedule of Insurance in Force .............................................................................................. — - - 164
TUT
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CM,i.r, TAMPICO (7 6 0) 7 7 7 -7 0 0 0
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
December 17, 2013
To the Honorable Mayor, Members of the Governing Council, and Citizens of the
City of La Quinta, 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 shall be filed with the State Controller and with the
County Auditor of the County in which the district is located within 12 months of
the end of the fiscal year. This report is published to fulfill these requirements for
the fiscal year ended June 30, 2013. 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 has been established for this purpose. Because the cost of
internal control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of
any material misstatements.
Lance Soll & Lunghard LLP Certified Public Accountants have issued an unmodified
("clean") opinion on the City of La Quinta financial statements for the year ended
June 30, 2013. 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.
N
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 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, library services, visitor and tourist information, city
promotion through the La Quinta Chamber of Commerce, water and sewer service,
electricity service, refuse collection, public transit, and cable television service.
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 2013, the total workforce for the City of La Quinta was 15,300 of which
14,400 were employed for a 5.6% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 10.8% and the statewide
unemployment rate of 8.8%.
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 2003-04 to $10.33
billion in 2012-13. It should be noted; however, that the net taxable values in the
past three fiscal years have consistently decreased by 7.48% in 2010-11, 4.95%
in 2011-12, and 4.96 in 2012-13. 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, Costco, Home Depot,
Rancho La Quinta, Lowe's Home Improvement and Imperial Irrigation District.
During the past ten years, the City of La Quinta general fund expenditures have
increased 178%. Two Departments that have exceeded the average include Public
Safety (208%) and Community Services (285%). In the case of Public Safety,
much of the increase is reflected in increased police service personnel. The
Community Services increase can be attributed to adding library and museum
services as well as park maintenance functions to the Department.
During the same ten-year period, the City of La Quinta general fund revenues
increased 126%. Sources that exceeded the average include intergovernmental
(163%), and taxes (177%). 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 2008-11 has affected the City of La Quinta. This
downturn has resulted in our residents and businesses experiencing: 0 ) a higher
level of unemployment, (2) lower property values; (3) more commercial store
closings and (4) more home foreclosures than in previous years. Although the
credit crisis has resulted in fewer new home starts and new businesses in the
recent past, the Community Development Department is beginning to see an
increase in the volume of building permits indicating that the economy is
strengthening. While the City is the home of large and small retailers and hotels,
no significant store openings have occurred in Fiscal Year 2012-13 and several
large retailers have closed their doors in recent years. The City has experienced a
modest increase in sales tax in Fiscal Year 2012-13 versus Fiscal Year 2011-12
and Transient Occupancy Tax has increased by 9.8%. Property tax collections have
also increased in Fiscal Year 2012-13; however, from the historic highs of Fiscal
Year 2006-07. Economists state that the recession is over and the City is
beginning to see a modest amount of activity in the Community Development
Department.
Since Fiscal Year 2008-2009, the City has continually tightened its fiscal belt at its
mid year reviews. 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 2010-1 land 89 positions
in 2011-12. With the dissolution of the Redevelopment Agency in June 2011,
staffing levels were further reduced by 22 positions and the City now has reduced
staff to 70 full time positions. Furthermore, the City will continue to closely
monitor expenditures and possibly further reduce expenditures in Fiscal Year 2013-
14. In addition to reducing expenditures, the City is looking closely at ways to
increase revenues. For example, during Fiscal Year 2012-13, the City implemented
the short-term vacation rental program. This program is expected to increase
revenues in the General Fund by approximately $300,000.
Long-term financial planning
Each year the City embarks on a strategic planning process, which begins in the fall
with a discussion of the City Council goals and ends with adoption of the budget in
June. As a result of the expenditure reductions and the revenue enhancements
mentioned above, the City was able to deliver a balanced budget to the City
Council for Fiscal Year Ending 2013-14.
The City of La Quinta is continually attempting to attract revenue -producing
businesses and hotels consistent with its land use -planning, while at the same time
providing current and future residents a level of service that makes them proud to
call La Quinta their home.
During Fiscal Year 2012-13, the General Fund balance increased by $696,509.
Actual revenues collected during the fiscal year were $33.5 million and
expenditures made were $32.8 million.
Revenue collected was $475,483 higher than the budget. This was largely due to
property taxes and transient occupancy tax being higher than projected indicating
that the economy is slowly recovering. While we saw approximately $1.8 million
1V
increase in property tax, transient occupancy tax and franchise taxes when
comparing budget versus actual, these increases were offset by negative variances
in the charges for services, intergovernmental, and interest income areas, resulting
in a net increase of $475,483.
The General Fund balance as of June 30, 2013 was $92.6 million of which $65.2
million versus $23.9 million in Fiscal Year 2011-12 was non -spendable, $20.4
million versus $19.0 million in Fiscal Year 2011-12 was committed, $1.0 million
versus $1.7 in Fiscal Year 2011-12 was assigned, and $5.9 million versus $47.1
million in Fiscal Year 2011-12 was unassigned.
Additional components of the strategic planning process include the Capital
Improvement Program and the Annual Budget. An explanation of these documents
is provided below.
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 $224 million.
AnnualBudget
This document is the annual implementation tool for the overall planning process
and serves as a tool for all of the departments to manage their individual
expenditures for the fiscal year. The budget will encompass each element of the
strategic planning effort and will implement the goals set by the City Council and
includes the capital improvement investment for a given year.
Relevant Financial Policies
. .........
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1 x26
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 will 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 began in September 2012 and will be completed
in early 2014.
Construction on the Adams Street Bridge project was started during the fiscal year
and will be completed in December 2013. This project spans the Whitewater
Channel and provides 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. Currently the
City is in negotiations with a developer to construct the second golf course,
permanent clubhouse, and necessary infrastructure.
Awards and Acknowledgments
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, 2012. 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
organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that
our current CAFR continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient
and dedicated service of the finance department staff. Credit also must be given to
the Mayor and City Council for their support in maintaining the highest standards of
professionalism in the management of the City of La Quinta's finances.
Vi
Respectfully submitted,
cek
Frank J. Spe E
City M nager
Robbeyn Bird, CPA
Finance Director
vii
City of La Quinta
Directory of Officials
June 30,2013
CITY COUNCIL
Don Adolph, Mayor
Kristy Franklin, Mayor Pro Tern
Linda Evans, Council Member
Terry Henderson, Council Member
Lee Osborne, Council Member
ADMINISTRATION
Frank J. Spevacek, City Manager
Robbeyn Bird, Finance Director
Edie Hylton, Community Services Director
Kathy Jenson, City Attorney
Les Johnson, Community Development Director
Tim Jonasson, Public Works Director/City Engineer
Susan Maysels, City Clerk
Viii
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Quinta
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2012
*/0/0 44P.Aot-0
Executive Director/CEO
* * 41
David E. Hale, CPA, CFP
Bryan S. Gruber, CPA
0490
LSE
Donald G. Slater, CPA
Deborah A. Harper, CPA
Richard K. Kikuchi, CPA
Gary A. Cates, CPA
Susan F. Matz, CPA
Michael D. Mangold, CPA
CERIJIFIED PUBLIC ACCOUNTANTS
Shelly K. Jackley, CPA
David S. Myers, CPA
A DMalon of LSL, CPAs
WI-Mure, peeLer & boucher
INDEPENDENT AUDITORS'REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Report on Financial Statements
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 City of La Quinta, California,
(the City) as of and for the year ended June 30, 2013, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors'Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether'due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2013,
Lance, Sell & Lunghard, LLP 203 North Brea Boulevard - Suite 203 - Brea, CA 92821 - TEL 714.672.0022 - Fax 714.672.0331 www.lslcpas.com
Orange County Temecula Valley Silicon Valley Los Angeles County
LSE
IFL I IF if I FU It re Uouk FAM I
ffal - - 0 "1- �
vivnure. peeLer lk boucher
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
and, the respective changes in financial position and, where applicable, cash flows thereof and the
respective budgetary comparison for the General Fund and the Housing Authority PA No.2 Fund for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, in 2013 the City adopted new accounting guidance,
GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified
with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules, and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory and statistical sections have 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.
2
0
LSE
CIFITIFIED PUBLIC
W k9a.
viLmure, peeLe L boucher
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November
25, 2013 on our consideration of the City'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 in considering City's internal control over financial
reporting and compliance.
*�
Brea, California
November 25, 2013
THIS PAGE INTENTIONALLY LEFT BLANK
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, 2013. 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 $699,670,000 (net position). Of this amount, $78,649,000
(unrestricted net position) may be used to meet the government's ongoing
obligations to citizens and creditors. Approximately $571,423,000 or 82 percent was
invested in capital assets and is not available to meet ongoing obligations.
The governmental activities total net position increased by $11,873,000 and the
Business -Type total net position decreased by $369,000 which is attributable to the
SilverRock Golf Course. Of the $11,873,000, the restatement of net position
represented $3,909,000. This restatement of net position is explained more
extensively in this document in Note 18.
As of the close of the current fiscal year, the City of La Quinta's governmental funds
reported combined ending fund balances of $98,753,000 a decrease of $8,378,000
in comparison with the prior year. The primary reason for this decrease is due to the
dissolution of the former Redevelopment Agency.
At the end of the current fiscal year, the unassigned General Fund Balance
comprised $5,927,000 of the total $92,573,000 General Fund Balance or 6 percent
of the total Fund Balance and 17 percent of total General Fund budgeted
expenditures.
The total governmental activities debt increased by $1,565,000 during the current
fiscal year from $5,378,000 to $6,943,000. This increase is mainly due to the
Provident Loan and US Department of Agriculture loans being transferred from the
Successor Agency of the Former La Quinta Redevelopment Agency to the City.
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 position presents information on all of the City of La Quinta's
assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with
the difference between the two reported as net position. Over time, increases or
decreases in net position 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
position changed during the most recent fiscal year. All changes in net position
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,
community 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.
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.
EV
Governmental funds
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund
financial statements focus on near -term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of
the fiscal year. Such information may be useful in evaluating a government's
near -term financing requirements.
Because the focus of governmental funds is narrower than that of the
government -wide financial statements, it is useful to compare the information
presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so,
readers may better understand the long-term impact of the government's near -term
financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund
bala nces provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of La Quinta maintains thirty two (32) 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) capital project funds, and one (1) special
revenue fund. These four (4) funds are considered to be major funds. Data from
the other twenty seven (27) 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 Position, Statement of
Revenues, Expenses and Changes in Fund Net Position, 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 Net Position — Fiduciary
Funds.
Notes to the financial statements
The notes to the financial statements provide additional information that is essential to
obtain 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 the combining statements referred to earlier in connection with non -major
governmental funds, internal service funds, and agency funds are presented
immediately following the Notes to the Financial Statements. Combining and individual
fund statements and schedules can be found in the table of contents under Budgetary
Comparison Schedules.
Government -wide financial analysis
As noted earlier, net position 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 $699,670,000 at the close of the most recent fiscal year, which is
$11,504,000 more than the previous year.
The largest portion of the City of La Quinta's Net Position, which was 82% this year and
84% last year, reflects its investment in capital assets (e.g., land, buildings-, machinery,
and equipment). The City of La Quinta uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. However, 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 Position
Governmental activities
Business -type activities
Total
2013
2012
2013
2012
2013
2012
Current and other assets
$157,369,797
$137,676,930
$ (4,457,412)
$ (4,535,584)
$152,912,385
$133,141,346
Capital assets
529,752,387
534,388,479
41,785,179
42,274,767
571,537,566
576,663,246
Total assets
687,122,184
672,065,409
37,327,767
37,739J83
724,449,951
709,804,592
Current liabilities
17,499,856
15,880,753
293,192
210.308
17,793,048
16,091,061
Non -current liabilities
6,942,844
5,377,984
43,736
169,084
6,986,580
5,547,068
Total liabilities
24,442,700
21,258,737
336,928
379,392
24,779,628
21,638,129
Net position:
Net investment in capital assets
529,681,342
534,388,479
41,741,443
42,105,683
571,422,785
576,494,162
Restricted
49,598,397
26,585,382
-
49,598,397
26,585,382
Unrestricted
83,399,745
89,832,811
(4,750,604)
(4,745,892)
78,649,141
85,086,919
Total net position
$662,679,484
$650,806,672
$36,990,839
$37,359,791
$699,670,323
$688,166,463
An additional portion of the City of La Quinta's net position (7 percent versus 4 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 Position - $78,649,000
(11 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 Position, both for the government as a whole, as
well as for its separate governmental activities; however, the business type unrestricted
Net Position had a deficit in its net position of $4,751,000, which is approximately
$5,000 more than the previous year.
Governmental activities
Governmental activities Net Position increased by $11,873,000 accounting for a 10
percent change in the Net Position from the previous year. Key elements of these
changes are as follows:
City of La Quinta Changes in Net Position
Governmer"I
Business -type,
activities
advltiesi
Total
Revenues:
2013
2012
Change
2013 2012 Change
2013
2012
Change
program revenues:
Charges for services
$ 2,533,941
$ 2,504.302
$ 29,639
$ 3.736,879 $ 3,871.898 $(135,019) $
6,270.820 $ 6,376,200
$ (105,380)
Operating grants and
contributions
28,068,940
11.289,673
16,779,267
28,068,940
11,289.673
16,779,267
Capital grants and
contributions
4,115,238
9,990,793
(5,875,555)
4,115,238
9,990,793
(5,875.555)
General revenues:
Property taxes
7,043,604
21.370,476
(14,326,872)
7,043,604
21,370,476
(14,326.872)
Othertaxes
16,487,958
15.570,619
917.339
16.487.958
15,570,619
917,339
Investment income
1,605.718
1,925,255
(319.537)
2,225 1,075 1,150
1,607,943
1.926,330
(31S,387)
Motor vehicle in lieu
3.157,330
3,173.826
(16,496)
- - -
3.157,330
3,173.626
(16,496)
Extraordinary gairuloss on
dissolution of RDA
-
158,654,715
(168.654,715)
158,654,715
(158,654,715)
Gain (loss) on sale of capital
assets
(2,189,984)
(2,189,984)
-
(2.189,984)
-
(2,189,984)
Miscellaneous
29,651
268.644
(240,Oq3)
100,790 - 100.799
129,350
268,844
(139,294)
Total revenues
80,861,296
224,748.303
(163,897,007)
3,839,903 3,872,973 (33,070)
64,691.199
228,621A76
(163,930.077)
4,511.023
6.183,712
(1,672,689)
4,511,023
6.183,712
(1,672.689)
Expomms!
General government
Public safety
21,047,691
20,815,454
232.237
21,047,691
20,815,454
232,237
Community development
2,274,541
6,378,352
(4.103,811)
2,274.541
6,378,352
(4,103,811)
Community services
4,986,104
5,093.402
(107,298)
4,986,104
5,093,402
(107,298)
Public works
11,803,133
13,288.521
(1,485,388)
11,803.133
13,288,521
(1,485,388)
Interest on long-term debt
447,048
3,021,496
(2,574,448)
447,048
3.021,496
(2,574,448)
Golf course
4,2f)6,855 4.085,282 123,573
4.208,855
4.085,262
123.573
Total eKlpense,,;
45.069,540
54,780,937
(9,711,397)
4,208.655 4,085.282 123,573
49.278,39 5
58,866.219
(9,587.824)
Increase in net position
before transfers and
restatements
15.781,756
169,967.366
(154,185,610)
(368,952) (212,309) (156,643)
15,412,804
169,755,057
(154.342,253)
Restatements
(3,908,944)
-
(3,908,944)
-
(3,908,944)
-
(3,908,944)
Increase in net position
11,872,812
169,967,366
(158,094.554)
(368,952) (212,309) (156,643)
11.503,860
169,755,057
(158,251,197)
Net position - 7/1/2012
1 650,806,672
480.839,306
169,967,366
37,359,791 37.572,100 (212.309)
688,166,463
518.411.406
169,755,057
Not position - 6/30/2013
1 $ 662,679,484
$ 650,806,672
$ 11,872,812
$ 36,990,839 $ 37,359,791 $ (368.952) $ 699,670,323
$ 688,166,463
$ 11,503,860
Revenues decreased by $163,897,000 with the largest category decreases of
$158,655,000 in the extraordinary gain on dissolution of the former
Redevelopment Agency that occurred in the previous year and a decrease of
$14,327,000 in property taxes. The decreases in revenues were partially offset
by an increase in operating grants of $16,779,000. The major reason for the net
decrease in property taxes is due to the loss of tax increment as a result of the
dissolution of the former redevelopment agency. During Fiscal Year Ended
June 30, 2012, the former Redevelopment Agency received tax increment for the
first part of that year. The overall decrease in total revenues is primarily due to
the redevelopment agency dissolution which resulted in an extraordinary gain in
the previous year.
Expenses decreased by $9,711,000 with the two largest category changes being
a decrease in the interest on long-term debt category of $2,574,000 and a
decrease in the Community Development category of $4,104,000. The decrease
10
in the interest on long-term debt category is primarily the result of the debt of the
City transferring to the Successor Agency to the former Redevelopment Agency
resulting in less interest expense on debt in the current year. The decrease in
the Community Development department is a direct result of the slowdown in the
economy. In addition, all departments show reductions in costs in the current
year with the exception of Public Safety, which increased by $232,000. This is
largely due to the City reorganizing and reducing staff by 17 positions in the
current year.
There were no contributions of assets from the governmental activities to the
business -type activities.
Business -type activities
This was the eighth full year of operations for the SilverRock Golf fund since the
golf course began early operation in 2005.
Net Position decreased by $ (369,000) from the effects of an operating loss.
Charges for services primarily consisted of green fees which totaled $3,737,000,
and was $135,000 less than the previous year, with golf course expenses of
$4,209,000, which was $124,000 more than the previous year.
During Fiscal Year 2012-13, 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 $5,324,000. 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 the funds.
Such information is useful in assessing the City of La Quinta's financing
requirements. In particular, unreserved fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the
fiscal year.
As of the end of the current fiscal year, the City of La Quinta's governmental funds
reported combined ending fund balances of $98.75 million as follows:
11
Governmental Fund balances
Category
General Fund
Percent
All Other Funds
Percent
Total Funds
Percent
Nonspendable
$ 65,225,273
71%
$ 2,086,499
33%
$ 67,311,772
68%
Restricted
-
0%
17,273,511
279%
17,273,511
18%
Committed
20,407,133
22%
-
0%
20,407,133
21%
Assigned
1,013,533
1%
0%
1,013,533
1%
Unassigned
5,926,651
6%
(13,179,196)
-212%
(7,252,545)
-8%
Total
92,572-1590
$ 6,180,814
$ 98,753,404
Governmental fund balances ended the year totaling $98,753,000, a decrease of
$8,378,000 in comparison with the prior years ending balance of $107,132,000. Of this
amount $67,312,000 or 68% constitutes non -spendable reserves, which means that
these reserves are not available to fund operating expenditures of the organization,
$17,273,000 or 17% are restricted fund balances which are the result of external
limitations on spending, $20,407,000 or 21% 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 $1,014,000 consist of
carryover appropriations which were budgeted for in Fiscal Year 2012-13, but were
unspent and will be budgeted again in the next budget year. The remainder of fund
balance or $(7,252,000) 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 $5,927,000, while
total fund balance reached $92,573,000. 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 257 percent of the total
budgeted expenditures.
The City of La Quinta's general fund balance increased by $696,509 in Fiscal Year
2012-2013. Key factors for this increase are as follows:
Actual expenditures were $2,834,000 less than the final budget. Divisions that were
significantly under budget for the year were Police ($548,000), Fire ($492,000),
Management Services ($228,000), Community Services ($119,000) and Park
Maintenance ($138,000). In addition, actual transfers out were $1,394,000 less than
budgeted.
Actual revenue collections were $475,000 more than the final adjusted budget.
Overall, taxes were $1,801,000 more than budgeted for in Fiscal Year 2012-13, and
the actual taxes collected in Fiscal Year 2012-13 ($23,388,712) was $2,092,000 more
than the prior year tax actual collections of $21,296,300. Actual transient occupancy
tax collections in Fiscal Year 2012-13 were $5,981,000 or $534,000 more than prior
12
year collections. Actual sales tax collections for Fiscal Year 2012-2013 were
$8,001,000 or $287,000 more than the $7,714,000 collected in Fiscal Year 2011-12.
Motor vehicle in lieu taxes decreased from $3,175,000 in fiscal year 2011-12 to
$3,157,000 in 2012-13.
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 $6,937,000 to end the
year at $1.1 million.
Capital Improvement Fund
The Capital Improvement fund is primarily used to record the expenditure of funds for
capital projects. The fund had thirty nine (39) active Capital Improvement Projects
budgeted during Fiscal Year 2012-13. 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 Civic Center 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 $7.3 million advance from the General Fund is
outstanding at the end of Fiscal Year 2012-13.
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 Budgetary Highlights
During the year there was a $420,000 increase in appropriations and transfers out
between the original ($35,233,000) and final amended budget ($35,653,000). Following
are the main components of the changes:
13
• The FY 2012-13 budget included $1,014,000 in carryover appropriations from
FY 2011-12.
• The Fiscal Year included an additional $2,092,807 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, 2013, amounts to $571,538,000 (net of accumulated
depreciation). This investment in capital assets includes land, right of way, buildings
and improvements, machinery and equipment, streets and bridges, and construction in
progress. The investment in capital assets increased this fiscal year from the purchase
of properties which exceeded the depreciation expenses.
The following chart lists the asset categories for governmental and business like
activities net of depreciation.
City of La Quinta Capital Assets (net of depreciation)
Description
Governmental
activities
Business -type
activities
- Total
2013 2012 2013 2012 2013 2012
Land
$ 69,60gr372
$ 69,628,685
$36,840,832
$36,840,832
$106,450.204
$106,459,517
Buildings and improvements
47,830,084
50,257,149
4,660,157
4,894,712
52,490,241
55,151,861
Equipment and furniture
546,456
612,134
284,190
539,223
830,646
1,151,356
Vehicles
237,800
328,874
-
-
237,800
328,875
Infrastructure
392,932,855
398,368,091
411,528,675
413,561,637
Construction in progress
18,595,820
15.193,546
-
-
$529.752,T87
-$534,388.479
$41,713LI �79$4�2,27
4,-/67�$571,5�37,566�,$-57,6�663,24�6
Total
Major capital asset events during the current fiscal year included the following.
Governmental activities
• Recording infrastructure improvements, street improvements, street right of way,
street sidewalks and curbs and gutters, traffic signals, and street medians;
• Completed the Washington Street Dual Left Turn Lane at Avenue 48 totaling
$681,500;
• Completed Highway 111 Right Turn Lane at Washington in the amount of $4,300;
• Completed the Wells Site Mitigation in the amount of $1,266,875; and,
14
Completed the Senior Center Heating Ventilation and Air Conditioning system in the
amount of $141,100.
Business -type activities
The Golf Course capital asset balance at June 30, 2013, was $41,785,000 net of
accumulated depreciation. The entire decrease of $490,000 was due to annual
depreciation of the assets.
Additional information on the City of La Quinta's capital assets can be found in Footnote 7
to the financial statements.
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $6,943,000. Of the total amount, $3,425,000 of this debt amount
represents bonds secured solely by specified revenue sources. In addition, $71,000 in a
copier lease is outstanding in the governmental funds.
City of La Quinta Outstanding Debt
Governmental
Business -type
activities
activities
Total
Debt type:
2013
2012
2013 2012
2013
2012
Capital leases
$ 71,045
$ 40,088
$ 43,736 $169,084
$ 114,781
$ 209,172
Compensated absences
744,007
941,954
-
744,007
941,954
Post reti re me nt hea Ithca re
liability
559,591
459,644
559,591
459,644
General Liability Retrospective
Deposit
-
41,298
41,298
Loans payable
2,143,201
-
2,143,201
-
Revenue bonds
3,425,000
3,895,000
3,425,000
3,895,000
Total
$6,942,844
$5,377,984
$ 43,736 $169,084
$6,986,580
$5,547,068
The total outstanding debt increased by $1,440,000 during Fiscal Year 2012-13. The
increases was due to the addition of Loans Payable that was transferred from the
Successor Agency to the City.
Additional information on the City of La Quinta's long-term debt can be found in notes 8
and 9 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 2013-2014:
• The City of La Quinta had a 5.6 versus 6.6 percent last year unemployment rate.
This rate is significantly lower than the Riverside County and the State-wide
unemployment rate.
• During the last ten years, 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
15
2009-10 to Fiscal Year 2012-2013 assessed values decreased by approximately
12%.
• During the current fiscal year, the general fund net gain was $696,500 and
$1,014,000 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 2013-14 General Fund revenue projections include anticipated
increases for the City becoming a Transportation Uniform Mitigation Fee (TUMF)
collecting organization ($412,500).
• The Fiscal Year 2013-14 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
2013-14.
Requests for Information
This financial report is designed to provide a general overview of the City of La Quinta's
finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City of La Quinta, Robbeyn Bird,
Finance Director, 78-495 Calle Tampico, La Quinta, CA, 92253 or by telephone at 760-
777-7150.
16
CITY OF LA QUINTA
STATEMENT OF NET POSITION
JUNE 30, 2013
Primary Government
Governmental
Business -Type
Activities
Activities
Total
Assets:
Cash and investments
$ 60,285,917
$ 437,557 $
60,723,474
Receivables:
Accounts
207,796
99,163
306,959
Taxes
2,508,084
-
2,508,084
Notes and loans
33,454,586
-
33,454,586
Accrued interest
145,396
397
145,793
Internal balances
5,323,541
(5,323,541)
-
Prepaid costs
22,096
1,865
23,961
Deposits
18,430
250,000
268,430
Due from other governments
46,813,365
-
46,813,365
Inventories
-
77,147
77,147
Land held for resale
8,320,000
-
8,320,000
Long-term retrospective refund
270,586
-
270,586
Capital assets not being depreciated
373,133,986
36,840,832
409,974,818
Capital assets, net of depreciation
156,618,401
4,944,347
161,562,748
Total Assets
687,122,184
37,327,767
724,449,951
Liabilities:
Accounts payable
5,581,753
250,751
5,832,504
Accrued liabilities
398,862
2,404
401,266
Accrued interest
63,413
-
63,413
Unearned revenue
343,682
4,537
348,219
Deposits payable
7,715,132
35,500
7,750,632
Due to other governments
3,397,014
-
3,397,014
Noncurrent liabilities:
Due within one year
1,269,030
43,736
1,312,766
Due in more than one year
5,673,814
-
5,673,814
Total Liabilities
24,442,700
336,928
24,779,628
Net Position:
Net investment in capital assets
529,681,342
41,741,443
571,422,785
Restricted for:
Planning and development projects
35,041,886
-
35,041,886
Public safety
258,968
258,968
Public works
262,837
262,837
Capital projects
1,392,498
1,392,498
Debt service
1,015,767
1,015,767
Community services
11,626,441
11,626,441
Unrestricted
83,399,746
(4,750,604)
78,649,141
Total Net Position
$ 662,679,484
$ 36,990,839
$ 699,670,323
See Notes to Financial Statements 17
CITY OF LA QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2013
Functions/Programs
Primary Government:
Governmental Activities:
General government
Public safety
Planning and development
Community services
Public works
Interest on long-term debt
Total Governmental Activities
Business -Type Activities:
Golf Course
Total Business -Type Activities
Total Primary Government
Pro rain Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
$ 4,511,023 $ 38,812 $ 242,150 $ -
21,047,691 927,604 4,486,688 289,664
2,274,541 112,695 21,442,706 122,103
4,986,104 245,392 49,475 -
11,803,133 1,209,438 1,847,921 3,703,471
447,048 -
45,069,540 2,533,941 28,068,940 4,115,238
4,208,855 3,736,879
4,208,855 3,736,879
$ 49,278,395 $ 6,270,820 $ 28,068,940 $ 4,115,238
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
Gain on sale of capital asset
Extraordinary gain/(loss)
Total General Revenues and Extraordinary Items
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
See Notes to Financial Statements 18
Net (Expenses) Revenues and Changes in Net
Position
Primary Government
Governmental Business -Type
Activities Activities Total
$ (4,230,061) $
- $ (4,230,061)
(15,343,735)
- (15,343,735)
19,402,963
- 19,402,963
(4,691,237)
- (4,691,237)
(5,042,303)
(5,042,303)
(447,048)
(447,048)
— (10,351,421) (10,351,421)
(4 1,976) 1471,976)
(471,976) (471,976)
(10,351,421) (471,976) (10,823,397)
7,043,604
7,043,604
5,980,684
5,980,684
7,833,545
-
7,833,545
1,669,476
-
1,669,476
292,966
-
292,966
518,778
-
518,778
3,157,330
-
3,157,330
1,605,718
2,225
1,607,943
192,509
100,799
293,308
28,551
-
28,551
(2,189,984)
-
(2,189,984)
26,133,177
103,024
26,236,201
15,781,756
(368,952)
15,412,804
650,806,672
37,359,791
688,166,463
(3,908,944)
-
(3,908,944)
$ 662,679,484
$ 36,990,839
$ 699,670,323
See Notes to Financial Statements 19
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2013
zipeciai
Revenue Funds Capital Projects Funds
Housing
Authority PA Capital
General No. 2 Improvement Civic Center
Assets:
Pooled cash and investments $ 35,558,278 $ 1,105,108 $ 2,094,200 $ 4,958
Receivables:
Accounts
43,516
43,486
Taxes
2,390,117
-
Notes and loans
-
29,224,854
Accrued interest
125,760
-
Prepaid costs
11,786
10,310
Deposits
4,830
13,600
Due from other governments
46,258,351
-
426,752
Due from other funds
26,866
-
Advances to other funds
15,509,691
Land held for resale
8,320,000
Long-term retrospective refund
270.586
Total Assets
$ 108,519,781
$ 30,397,358
$ 2,520,952
$ 4,958
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$ 3,916,810
$ -
$ 1,592,617
$
Accrued liabilities
382,758
11,642
-
Unearned revenues
45,451
-
231,798
Deposits payable
6,969,172
28,340
492,433
Due to other governments
1,143
-
Due to other funds
Advances from other funds
-
7,310,447
Total Liabilities
11,315,334
39,982
2,316,848
7,310,447
Deferred Inflows of Resources:
Unavailable revenues
4,631,857
29,224,854
294,765
-
Total Deferred Inflows of Resources
4,631,857
29,224,854
294,765
Fund Balances:
Nonspendable:
Prepaid costs
11,786
10,310
-
Land held for resale
8,320,000
-
Notes and loans
-
Advances to other funds
15,509,691
-
Deposits
4,830
13,600
Due from other Governments
41,378,966
-
Restricted for:
Planning and development projects
-
1,108,612
Public safety
Community services
Public works
Capital Projects
Debt service
-
Committed to:
Capital Projects
2,848,737
Emergency reserve
16,034,995
Post retirement health benefits
1,523,401
Assigned to:
Continuing appropriations
1,013,533
Unassigned
5.926,651
(90,661)
(7,305,489)
Total Fund Balances
92,572,590
1J32,522
(90,661)
(7,305,489)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 108,519,781
$ 10,397,358
$ 2,520,952
$ 4,958
See Notes to Financial Statements
20
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2013
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Land held for resale
Long-term retrospective refund
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Advances to other funds
Deposits
Due from other Governments
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Debt service
Committed to:
Capital Projects
Emergency reserve
Post retirement health benefits
Assigned to:
Continuing appropriations
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Other Total
Governmental Governmental
$ 16,603,941 $ 55,366,485
120,794
207,796
117,967
2,508,084
4,229,732
33,454,586
15,269
141,029
22,096
-
18,430
128,262
46,813,365
26,866
15,509,691
8,320,000
270,586
$ 21,215,965 $ 162,659,014
$ 14,320
$ 5,523,747
-
394,400
66,433
343,682
225,187
7,715,132
3,395,871
3,397,014
26,866
26,866
2,875,703
10,186,150
6,604,380
27,586.991
2,167,143
36,318,619
2,167,143
36,318,619
22,096
8,320,000
2,062,589
2,062,589
-
15,509,691
18,430
41,378,966
2,621,921
3,730,533
258,968
258,968
11,626,441
11,626,441
262,754
262,754
1,392,581
1,392,581
2,234
2,234
-
2,848,737
16,034,995
1,523,401
1,013,533
(5,783,046) (7,252,545)
12,444,442 98,753,404
$ 21,215,965 $ 162,659,014
See Notes to Financial Statements 21
THIS PAGE INTENTIONALLY LEFT BLANK
22
CITY OF LA QUINTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2013
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position 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
Capital lease payable
Loans payable
Compensated Absences
Governmental funds report all OPEB contributions as expenditures,
however in the statement of net position any excesses or deficiencies
in contributions in relation to the Annual Required Contribution (ARC) are
recorded as a 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 unavailable 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 position.
Net Position of governmental activities
$ (3,425,000)
(71,045)
(2,143,201)
(735,681)
$ 98,753,404
513,303,842
(6,374,927)
(559,591)
(63,413)
36,318,619
21,301,550
$ 662,679,484
See Notes to Financial Statements 23
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30,2013
Special
Revenue Funds Capital Projects Funds
R—ousing
Authority PA Capital
General No. 2 Improvement Civic Center
Revenues:
Taxes $ 23,388,712 $ - $ - $
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions from other agencies
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
Capital leases
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
566,510
-
8,214,465
433,808
3,101,418
620,410
-
211,816
182,706
235,879
-
-
-
17,939,498
437,755
446,146 96,322
131A08
20,525
- -
33,369,200
18,576,537
3,985,319 96,322
4,378,628 203,557
20,110,346 - -
1,440,482 347,971 25,281,358
2,919,504 - -
3,112,474 -
116,045 - 8,463,395
40,088 46,783 - -
1,236 145.790 28,764
32,118,803 540,544 33,7",753 232,321
1,250,397 18,035,993 ___L29,759,434) (135,99%
75,951
(700,884) (24,972,905)
71,045
(553,888) L,972,9051
696,509 (6,936.a12
j
29,759,434
(135,999)
91,876,081 8,069,434 (90 (7,169,490)
$ 92,�72,590 $ 1,132,522 $ (90,661 L $ (7,305,4891
See Notes to Financial Statements 24
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30C 2013
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions from other agencies
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
Capital leases
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Other Total
Governmental Governmental
Funds Funds
$ 117,967
$ 23,506,679
954,058
954,058
-
566,510
3,715,251
15,464,942
5,403
625,813
1,188,240
1,582,762
-
235,879
-
18,377,253
684,357
1,226,825
103,455
255,388
6,768,731 62,796,109
5,703
4,587,888
57,692
20,168,038
444,957
27,514,768
1,492,032
4,411,536
1,954,896
5,067,370
43,343
8,622,783
470,000 556,871
261,888 437,678
4,730,511 71,366,932
2,038,220 (8,570,823)
5,668 29,841,053
(4,167,264) (29,841,053)
- 71,045
121,652 121,652
(4,039,944) 192,697
(2,001,724) (8,378,126)
14,446,166 107,131,530
$ 12,444,442 $ 98,753,404
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 30,2013
Net change in fund balances - total governmental funds $ (8,378,126)
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 $
8,912,255
Depreciation
(8,645,018)
Contributed capital assets
(145,907)
Gain/(loss) on sale of capital assets
(99,076) 22,254
The issuance of long-term debt liabilities provides current financial resources in
the governmental funds, but issuing debt increases the long-term liabilities in
the statement of net position. Repayment of bond principal is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the
statement of net position.
Principal repayments
470,000
Capital lease issued
(71,045)
General liability retrospective deposit payable
41,298
Capital lease repayments
40,088
Extraordinary gains and losses
(2,189,984)
Loan repayments
46.783 (1,662,860)
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
(9,370)
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.
196,560
Governmental funds report all contributions in relation to the annual required
contribution (ARC) for OPEB as expenditures, however in the statement
of activities only the ARC is an expense.
(99,947)
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity.
25,380,296
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.
332,949
Change in net position of governmental activities
$ 15,781,756
See Notes to Financial Statements 26
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(NeSative)
Budgetary Fund Balance, July 1
$ 91,876,081
$ 91,876,081
91,876,081
$
Resources (inflows):
Taxes
21,554,930
21,587,437
23,388,712
1,801,275
Licenses and permits
631,165
641,165
566,510
(74,655)
Intergovernmental
8,846,614
8,918,449
8,214,465
(703,984)
Charges for services
743,569
727,769
620,410
(107,359)
Use of money and property
694,560
694,560
211,816
(482,744)
Fines and forfeitures
307,200
217,200
235,879
18,679
Miscellaneous
118,900
120,900
131,408
10,508
Transfers in
148,308
133,233
75,951
(57,282)
Capital leases
-
-
71,045
71,045
Amounts Available for Appropriation
124,921,327
124,916,794
125,392,277
475,483
Charges to Appropriation (Outflow):
General government
Legislative
734,359
745,759
718,631
27,128
City Manager
315,620
392,149
414,113
(21,964)
Development Services
1,081,854
1,004,809
933,547
71,262
Management Services
1,109,477
1,146,936
919,434
227,502
City Clerk
530,432
440,953
360,881
80,072
Fiscal Services
807,086
719,279
828,356
(109,077)
Central Services
298,829
298,829
203,666
95,163
Public safety
Police
12,739,223
12,915,491
12,367,578
547,913
Building & Safety Admin.
274,203
236,949
235,985
964
Building & Safety Admin.
555,061
522,863
587,382
(64,519)
Code Compliance
1,056,153
975,951
888,988
86,963
Animal Control
458,810
424,198
413,411
10,787
Civic Center Bldg
968,845
1,000,915
931,315
69,600
Fire
5,029,690
5,029,690
4,537,279
492,411
Emergency Services
209,222
181,074
148,408
32,666
Planning and development
Administration
677,470
855,923
867,693
(11,770)
Current Planning
639,204
576,823
566,378
10,445
Low/Mod Housing
6,411
6,411
6,411
-
Parks and recreation
Community Services Admin
947,903
1,031,615
912,464
119,151
Senior Center
418,464
445,006
393,536
51,470
Parks & Recreation
197,709
180,209
173,953
6,256
Park Maintenance
1,588,598
1,577,412
1,439,551
137,861
Public works
Administration
472,951
475,454
515,033
(39,579)
Development Services
638,754
645,596
603,461
42,135
Maintenance/Operations - Street
39,796
65,283
393,022
(327,739)
Maintenance/Operations - Lighting
495,024
486,975
329,423
157,552
Construction Management
1,378,464
1,083,601
1,271,535
(187,934)
Capital outlay
55,300
92,259
116,045
(23,786)
Debt service:
Principal retirement
-
-
40,088
(40,088)
Interest and fiscal charges
-
-
1,236
(1,236)
Transfers out
1,508,094
2,094,807
700,884
1,393,923
Total Charges to Appropriations
35,233,006
35,653,219
32,819,687
2,833,532
Budgetary Fund Balance, June 30
89,688,321
$ 89,263,575
$ 92,572,590
$ 3,309,015
See Notes to Financial Statements 27
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
HOUSING AUTHORITY PA NO. 2
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$8,069,434
$ 8,069,434
$8,069,434
$
Resources (inflows):
Intergovernmental
498,200
498,200
433,808
(64,392)
Use of money and property
164,390
164,390
182,706
18,316
Contributions
-
18,141,988
17,939,498
(202,490)
Miscellaneous
3,700
3,700
20,525
16,825
Amounts Available for Appropriation
8,735,724
26,877,712
26,645,971
(231,741)
Charges to Appropriation (Outflow):
Planning and development
365,760
365,760
347,971
17,789
Debt service:
Principal retirement
46,782
46,782
46,783
(1)
Interest and fiscal charges
192,973
192,973
145,790
47,183
Transfers out
-
24,972,905
24,972,905
-
Total Charges to Appropriations
605,515
25,578,420
25,513,449
64,971
Budgetary Fund Balance, June 30
$8,130,209
$ 1,299,292
$ (166,7791
See Notes to Financial Statements 28
CITY OF LA QUINTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2013
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Deposits
Inventories
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Accrued compensated absences
Bonds, notes, and capital leases
Total Current Liabilities
Noncurrent:
Advances from other funds
Accrued compensated absences
Total Noncurrent Liabilities
Total Liabilities
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
Total Liabilities and Net Position
Business -Type
Activities -
Ente�prlse Funds
Governmental
Activities -
Internal
Golf Course
Service Funds
437,557 $ 4,919,432
99,163 -
397 4,367
1,865
250,000
77,147 -
866,129 4,923,799
41,785,179 16,448,545
41,785,179 16,448,545
$ 42,651,308 $ 21,372,344
250,751 $
2,404
4,537
35,500
43,736
336,928
58,006
4,462
5,469
67,937
5,323,541 -
- 2,857
5,323,541 2,857
5,660,469 70,794
41,741,443 16,448,547
(4,750,604) 4,853,003
36,990,839 21,301,550
$ 42,651,308 $ 21,372,344
See Notes to Financial Statements 29
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30
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2013
Operating Revenues:
Sales and service charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Administration and general
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
Contributions
Changes in Net Position
Net Position:
Beginning of Year
End of Fiscal Year
Business -Type
Activities -
Enterprise Funds Governmental
Activities -
Internal
Golf Course
Service Funds
3,736,879
$ 1,578,926
100,799
3,837,678
1,578,926
61,800
112,025
-
83,618
-
103,764
3,469,910
67,722
-
143,651
489,588
774,006
164,607
14,727
4,185,905
1,299,513
(348,227)
279,413
2,225
22,956
(22,950)
-
5,975
(20,725)
28,931
(368,952)
308,344
24,605
(368,952)
332.949
37,359,791
20,968,601
36,990,839
$ 21,301,550
See Notes to Financial Statements 31
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2013
Business -Type
Activities -
Enterprise Funds
Governmental
Activities -
Internal
Golf Course
Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users
Cash received from/(paid to) interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Advance to other funds
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
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
$ 3,760,421
$ 1,579,166
(2,538)
(367,246)
(3,558,488)
(112,898)
(61,6131
137,782
1,099,022
10,516
10,516
(125,348)
(22,950)
-
5,975
(148,298)
5,975
1,956
19,814
1,956
19,814
1,956
1,124,811
435.601
3,794,621
$ 437,557
$ 4,919,432
See Notes to Financial Statements 32
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2013
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 liabilities
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:
There were no non -cash transactions in the current year,
Business -Type
Activities -
Enterprise Funds
Golf Course
Governmental
Activities -
Internal
Sprvirp Fijnd-q
(348,227) $ 279,413
489,588
(76,921)
(9,542)
83,033
187
(336)
774,007
240
46,235
514
(1,387)
486,009 819,609
137,782 $ 1,099,022
See Notes to Financial Statements 33
CITY OF LA QUINTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2013
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued interest
Deposits payable
Due to other governments
Long-term liabilities:
Due in one year
Due in more than one year
Total Liabilities
Not Position:
Held in trust for pension
Held in trust for other purposes
Total Net Position
Private -
Pension Trust Purpose Trust
Agency
Supplemental
Agency of the
Funds
Pension Plan
former RDA
$ 589,081
$ 175,888
$ 59,723,121
-
-
21,000
11,613
-
-
-
3,563,561
502
160
8,996
-
-
3,395,871
-
-
43,406,872
$ 601,196
176,048
110,119,421
$ 24,464
- 4,284,473
601,196 -
41,804,608
6,190,000
- 271,339,821
$ 601,196 323,643,366
176,048
- (213,523,945)
$ 176,048 $(213,523,945)
See Notes to Financial Statements 34
CITY OF LA QUINTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30,2013
Private -
Pension Trust
Purpose Trust
Fund
Fund
Successor
Supplemental
Agency of the
Pension Plan
former RDA
Additions:
Taxes
Interest and change in fair value of investments
Total Additions
Deductions:
Administrative expenses
Contractual services
Interest expense
Contributions to City
Contributions to other governments
Total Deductions
Extraordinary gain/(loss)
Changes in Net Position
Net Position - Beginning of the Year
Restatements
Beginning of Fiscal Year, as restated
Net Position - End of the Year
$ 19,993,315
894 440,513
894 20,433,828
12,833 589,418
- 756,622
- 13,995,614
- 18,377,253
- 41,378,966
12,833 75,097,873
2,189,984
(11,939)
(52,474,061)
187,987
(156,811,196)
-
(4,238,688)
187,987
(161,049,884)
176,048
$ (213,523,945)
See Notes to Financial Statements 35
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R-�
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
JUNE 30. 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Reporting Entity
The City of La Quinta (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:
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 Former 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
37
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
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
Government -wide Financial Statements
The government -wide financial statements (i.e., the statement of net position 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
statement of activities to present the net cost of each program. Taxes and other items
not properly included among program revenues are reported instead as general
revenues. Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements, rather than reported as expenditures.
Proceeds of long-term debt are recorded as a liability in the government -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, deferred outflows of resources, liabilities, deferred
inflows of resources, fund equity, revenues and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled.
Fund financial statements for the governmental, proprietary, and fiduciary funds are
presented after the government -wide financial statements. These statements display
information about major funds individually and nonmajor funds in the aggregate for
governmental and enterprise funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds of the
38
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
city primarily represent assets held by the City in a custodial capacity for other
individuals or organizations.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government -wide Financial Statements
While separate government -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 government -wide 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.
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 specified, they are recognized as revenues when an enforceable legal
claim to the revenues arises or when they are received, whichever occurs first.
Govemment-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,
deferred outflows of resources, current liabilities, and deferred inflows of resources
are generally included on their balance sheets. The reported fund balance
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). Accordingly, they are said to
present a summary of sources and uses of "available spendable resources" during a
period.
39
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
Noncurrent portions of long-term receivables due to governmental funds are reported
on their balance sheets in spite of their spending measurement focus. Special
reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources", since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from unrestricted
resources.
Proprietary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund
financial statements, proprietary funds are presented using the accrual basis of
accounting. Revenues are recognized when they are earned and expenses are
recognized when the related goods or services are delivered. In the fund financial
statements, proprietary funds are presented using the economic resources
measurement focus. This means that all assets, all deferred outflows of resources,
all liabilities, and all deferred inflows of resources (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 position.
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 an Other 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 Enterprise 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.
40
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2013
Note 1: Summary of Significant Accounting Policies (Continued)
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.
Housing Authority Promect 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. Revenues will be provided from the receipts and collections of notes and
loans. All monies in the Housing Authority must be used in accordance with the
applicable housing -related provisions of the Community Redevelopment Law.
Capital Improvement Fund — This capital projects fund is used to account for the
planning, design and construction of various capital projects throughout the City.
Civic Center Fund — To account for the accumulation of resources provided through
developer fees for the acquisition, construction, or improvement of the Civic Center.
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.
41
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
Fiduciary Funds:
A.gency 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-Purpoge 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.
e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources,
and Net Position or Equity
Investments
For financial reporting purposes, investments are adjusted to their fair value.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments. Some investments are valued on an unamortized cost basis. For these
investments, there is no material difference from fair value.
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash and
investment balance.
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as
short-term, highly liquid investments that are both readily convertible to known
amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary fund's share in the cash and investment pool of the City of
La Quinta. Cash equivalents have an original maturity date of three months or less
from the date of purchase. For purposes of the statement of cash flows, the entire
balance of cash and investments on the combined balance sheet for the proprietary
funds is considered cash and cash equivalents.
Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses
the consumption method of accounting for inventories.
42
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
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.
Capital assets used in operations are depreciated over their estimated useful lives
using the straight-line method in the government -wide financial statements and in the
fund financial statements of the proprietary funds. Depreciation is charged as an
expense against operations and accumulated 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
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position and governmental fund
balance sheet will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position and fund balance that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/
expenditure) until then. The City of La Quinta has no items that qualify for reporting in
this category.
In addition to liabilities, the statement of financial position and governmental fund
balance sheet will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position or fund balance that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The government has only one type of item, which arises only under a modified
accrual basis of accounting that qualifies for reporting in this category. Accordingly,
the item, unavailable revenue, is reported only in the governmental funds balance
sheet. The governmental funds report unavailable revenues from three sources:
taxes, loans and grants. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
43
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
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. The General Fund resources are used to pay for the accumulated
benefits to employees.
Fund Balance
In the fund financial statements, governmental funds report the following fund
balance classification:
Nonspendable 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. The City Council authorizes
assigned amounts for specific purposes pursuant to the policy -making powers
granted through a resolution.
Unassicined includes the residual amounts that have not been restricted, committed,
or assigned to specific purposes.
Fund balance flow assumptions
Sometimes the City of La Quinta will fund outlays for a particular purpose from both
restricted and unrestricted resources (the total of committed, assigned, and
44
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 1: Summary of Significant Accounting Policies (Continued)
unassigned fund balance). In order to calculate the amounts to report as restricted,
committed, assigned, and unassigned fund balance in the governmental fund
financial statements a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City's policy to consider restricted
fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund
balance can be used for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
Net position flow assumption
Sometimes the City of La Quinta will fund outlays for a particular purpose from both
restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In
order to calculate the amounts to report as restricted — net position and
unrestricted — net position in the government -wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources
are considered to be applied. It is the City's policy to consider restricted — net position
to have been depleted before unrestricted — net position is applied.
GAS13 65 — Change in Accounting Principle
The City implemented GASB Statement 65, Items Previously Reported as Assets
and Liabilities. GAS13 65, among other things, amends prior guidance with respect to
the treatment of debt issuance costs. Debt issuance costs should be recognized in
the period incurred rather than reported on the statement of net position as deferred
charges and recognized systematically over the life of the debt. The accounting
changes of this statement should be applied retroactive and therefore the City has
reported a restatement of beginning net position for any unamortized debt issuance
costs (deferred charges) previously reported on the statement of fiduciary net
position to conform.
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds. The City manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department or funds that are
approved by City Council. Prior year appropriations lapse unless they are approved
for carryover into the following fiscal year. Expenditures may not legally exceed
appropriations at the department level. Budgets were not adopted for the
Development Agreement funds.
45
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2013
Note 2: Stewardship, Compliance and Accountability (Continued)
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).
b. At June 30, 2013, the following funds had deficit fund balances:
Major Capital Projects Funds
Capital Improvement
$ 90,661
Civic Center
7,305,489
Nonmajor Special Revenue Funds:
Federal Assistance
12,914
Nonmajor Capital Projects Funds:
Parks and Recreation
1,052,040
Library Development
1,841,056
Street Facility
2,009,184
Fire Facility
867,852
c. Excess of expenditures over appropriations are as follows:
Expenditures for the year ended June 30, 2013, exceeded the appropriations of the
General Fund as follows:
General Fund:
General Government
City Manager
Fiscal Services
Public Safety
Building & Safety Admin.
Community Development
Administration
Public Works
Administration
Mai ntenance/Operations - Street
Construction management
Budget
Actual Variance
$ 392,149 $ 414,113 $ 21,964
719,279 828,356 109,077
522,863
587,382
64,519
855,923
867,693
11,770
475,454
515,033
39,579
65,283
393,022
327,739
1,083,601
1,271,535
187,934
46
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Ill. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Cash and investments as of June 30, 2013, are classified in the accompanying financial
statements as follows:
Statement of Net Position:
Cash and investments $ 60,723,474
Statement of Fiduciary Net Positiom
Cash and investments 60,488,090
Cash with fiscal agent 43,406,872
Total cash and investments $ 164,618,436
Cash and investments as of June 30, 2013, consist of the following:
Cash on hand $ 1,450
Deposits with financial institutions 441,709
Investments 164,175,277
Total cash and investments $ 164,618,436
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 California 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.
Cash Deposits
At June 30, 2013, the carrying amount of the City's deposits was $441,709, and the bank
balance was $2,017,879. The $1,576,170 difference represents outstanding checks and
other reconciling items.
Investments Authorized by the California Government Code and the City's Investment Polic
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.
47
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 3: Cash and Investments (Continued)
This table does not address investments of debt proceeds held by bond trustee that are
governed by the provisions of debt agreements of the City, rather than the general provisions
of the California Government Code or the City's investment policy.
*Maximum
*Maximum Investment
Investment Types
*Maximum
Percentage of
In One
Authorized by State Law
Maturity
Portfolio
Issuer
U.S. Treasury Obligations
10 years
None
$30 million
U.S. Agency Securities
3 years
None
30 million
Local Agency Bonds
10 years
None
30 million
California Local Agency Obligations
10 years
30%
30 million
Commercial Paper
90 days
15%
5 million
Certificates of Deposit
3 years
60%
250,000
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 Relatina to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates.
One of the ways that the City manages its exposure to interest rate risk is by purchasing a
combination of short term and long term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the City's investments by maturity:
48
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 3: Cash and Investments (Continued)
Investment Type
Certificates of Deposit
Federal agency securities:
Federal National Mortgage Association
Federal Home Loan Bank
Federal Farm Credit Bank
Rabobank - money market funds
State investment pool
Held by bond trustee:
Money market funds
Remaining Maturity (in Months)
6 Months
Total or Less 1 to 3 Years 3 to 5 Years
1,429,922 $ 241,072 $ 718,394 $ 470,456
17,741,250 - 17,741,250
4,969,860 4,969,860 -
19,825,800 19,825,800
39,955,556 39,955,556
36,846,017 36,846,017
43,406,872 43,406.872
Total $ 164,175,277 $ 120,449,517 $ 25,514,054 $ 18,211,706
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The City's investment policy limits investments in
commercial paper to those rated A-1 and P-1 or higher from Standard and Poor's (S&P) and
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, 2013, 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, 2013, 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, 2013, the City had individual
investments that represent 5% or more of total investments with Federal Farm Credit Bank
and Federal National Mortgage Association.
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
49
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 3: Cash and Investments (Continued)
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, 2013, the City's investments of $39,955,556 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 California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro-rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost of
that portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis.
GASIB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards (e.g. mark to market) for investments in participating interest
earning investment contracts, external investment pools, equity securities, option contracts,
stock warrants and stock rights that have readily determinable fair values. Accordingly, the
City reports its investments at fair value in the balance sheet. All investment income,
including changes in the fair value of investments, is recognized as revenue in the operating
statement.
Note 4: Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 % of
assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of La Quinta accrues only those taxes that are received from the County
within ninety days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
Note 5: Notes Receivable
In September 1994, the Former 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
50
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 5: Notes Receivable (Continued)
transferred to the Housing Authority Project Area No. 1 which took over the housing function
of the Former Agency upon dissolution. The balance at June 30, 2013, including matured,
unpaid interest of $2,167,144 is $4,202,532.
In February 2011, the Former 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 2014. The Former 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
Former Agency upon dissolution. As of June 30, 2013, the outstanding principal portion on
the Note is $29,000,000 and the outstanding interest portion is $224,854.
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 Former Agency upon
dissolution that totaled $27,200 at June 30, 2013.
Note 6: CJPIA Refund Balances 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, 2013,
had a retrospective refund due to the City in the amount of $270,586.
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 2012-13 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.
51
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 7: Capital Assets
Capital asset activity for governmental
activities for
the year ended June 30, 2013,
is as
follows:
Beginning
Adjusted
Ending
Balance at
Beginning
Balance at
July 1, 2012
Adjustments
Balance
Additions
Deletions
Transfers
June 30, 2013
Governmental Activities:
Capital assets, not being depreciated:
Land $
69,628,685
$ -
$ 69,628,685
$ -
$ 19,313
$
$ 69,609,372
Right of way
284,904,621
-
284,904,621
24,173
-
284,928,794
Construction -in -progress
15,193,546
(3,908,944)
11,284,602
7,992,773
(681,555)
18,595,820
Total Capital Assets,
Not Being Depreciated
369,726,852
(3,908,944)
365,817.908
8,016,946
19,313
(681,555)
373,133,986
Capital assets, being depreciated:
Buildings and improvements
69,147,713
69,147,713
-
84,005
69,063,708
Equipment and furniture
2,298,592
2,298,592
95,648
104,054
2,290,186
Vehicles
1,598,538
1,598,538
-
-
-
1,598,538
Infrastructure
197,144.188
197,144,188
142,758
681,555
197.968,501.
Total Capital Assets,
Being Depreciated
270,189,031
270,189,031
238,406
188.059
681,555
270,920,933
Less accumulated depreciation:
Buildings and improvements
18,890,564
18,890,564
2,347,302
4,242
21,233,624
Equipment and furniture
1,686,458
1,686,458
161.326
104,054
1,743,730
Vehicles
1,269,664
1,269,664
91,074
-
1,360,738
Infrastructure
83,680,718
83,680,718
6,283,722
89,964,440
Total Accumulated
Depreciation
105,527,404.
105,527,404
8,883,424
108,296
1114,302,532
Total Capital Assets,
Being Depreciated, Net
164.661,627
164,661,627
(8,645,018)
79,763
681,555 156,618,401
Governmental Activities
Capital Assets, Net $
534,388,479 (3,908,944)
530,479,535
$ (628,072)
$ 99,076
$ $ 529,752,387
See Note 18 for information on adjustment.
Depreciation expense was charged to the following functions in the Statement of Activities:
General government $ 116,080
Public safety 1,148,394
Community services 611,890
Public works 7,007,060
Total governmental activities $ 8,883,424
52
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2013
Note 7: Capital Assets (Continued)
Capital asset activity for business -type activities for the year ended June 30, 2013, is as
follows:
Business -Type Activities:
Capital assets, not being depreciated
Land
Total Capital Assets,
Not Being Depreciated
Capital assets, being depreciated
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Capital Assets,
Being Depreciated
Less accumulated depreciation
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Accumulated
Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities
Capital Assets, Net
Beginning
Balance at
July 1, 2012
$ 36,840,832
Additions
$
Ending
Balance at
June 30 2013
$ 36,840,832
36,840,832
36.840,832
6,636,465
6,636,465
2,073,478
2,073,478
20,348
20,348
20,255
20,255
8,750,546
8,750,546
1,741,753
234,555
1,976,308
1,534,256
255,032
1,789,288
20,347
1
20,348
20,255
-
20,255
3,316,611
489,588
3,806,199
5,433,935
(489,588)
4,944,347
$ 42,274,767
$ (489,588)
S 41,785,179
Depreciation expense was charged to the following function in the Statement of Activities:
Golf Course $ 489,588
53
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 8: Changes in Long -Term Liabilities - Governmental Activities
a. Changes in Long -Term Debt
The following is a summary of changes in governmental long-term liabilities of the City for
the fiscal year ended June 30, 2013:
Transfers from
Balance at
the Successor
Balance at June
Due within
July 1. 2012
Agency
Additions
Deletions
30, 2013
one year
City:
Compensated absences payable
$ 941,954
$
$ 702.482
$ 900,429
$ 744,007
$ 711,011
Copier Lease Payable
40,088
71,045
40,088
71,045
11,918
OPEB Liability
459,644
116,408
16,461
559.591
General liability retrospective
deposit payable
41,298
41,298
RDA Project Area No, 2:
Provident Loan
1,473,612
32,516
1,441,096
35,340
US Department of Agriculture
716,372
14,267
702,105
15,761
Financing Authority:
Revenue bonds
3,895,000
470,000
3,425,000
495,000
Total
$ 5,377,984
$ 2,189,984
$ 889,935
$ 1,515,059
$ 6,942,844
$ 1,269,030
b. A description of individual issues of debt (excluding defeased bonds) outstanding
as of June 30, 2013, 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 to $3,417, 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. This was the last year of the lease and
the balance was paid in June 2013. The City immediately entered into a new 5-year lease
agreement for photocopiers for $71,045 maturing in monthly increments of $1,456, with
interest payable monthly at 8.47%. This new 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.
The minimum future lease obligations and the net present value of the lease payments as
of June 30, 2013, are as follows:
Year Ending
June 30,
Total
2014
$ 17,477
2015
17,477
2016
17,477
2017
17,477
2018
17,477
Total Payments 87,386
Less amount representing interest (16,340)
Outstanding Principal $ 71,045
54
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 8: Changes in Long -Term Liabilities — Governmental Activities (Continued)
1996 Lease Revenue Refundina 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, 2013, is $ 3,425,000.
On May 10, 2013, Standard and Poor's Ratings Services ("S&P") raised its financial
strength rating on NPFGC to'A'from 'BBB.'
On May 21, 2013, Moody's Investors Service raised its financial strength rating on
NPFGC to 'Baal' from 'Baa2.'
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest
2014
$ 495,000
$ 176,351
2015
525,000
148,046
2016
555,000
118,076
2017
585,000
86,441
2018
615,000
53,141
2019-2023
650,000
18,038
Totals $ 3,425,000 $ 600,093
CJPIA RetrosDective DeDosit Liabilit
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 taken the amount owed to the Authority by the City as an offset to the
CJPIA General Liability cumulative refund due to the City by the Authority. More
55
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 8: Changes in Long -Term Liabilities — Governmental Activities (Continued)
information on the CJPIA retrospective balances can be found on the CJPIA website
at CJPIA.org. At June 30, 2013, there was no retrospective amount.
Loans
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, 2013, is $1,441,096.
The minimum annual requirements to amortize the loan payable as of June 30, 2013,
are as follows:
Principal
Interest —
2014
$ 35,340
$ 119,1 T4
2015
38,411
116,064
2016
41,748
112,726
2017
45,375
109,099
2018
49,317
105,157
2019-2022
1,230,905
302�913_
Totals $ 1,441,096 $ 865,073
United States Department of Agriculture �USDA) Rural Development Promissory
Note
This promissory note was originaliy 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, 2013, Is $702,105,
56
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 8: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Principal
Interest
2014
$ 15,761
$ 69,520
2015
17,412
67,870
2016
19,235
66,047
2017
21,249
64,033
2018
23,474
61,807
2019-2023
159,812
266,597
2024-2028
262,940
163,469
2029-2032
182,222
23,684
Totals
$ 702,105
$ 783,027
Compensated absences
Compensated absences are described in note 1. The liability is typically liquidated by
the general fund.
Other Post -Employment Benefits (OPEB)
OPEB are described in note 15. The liability is typically liquidated by the general
fund.
Note 9: Changes in Long -Term Liabilities — Business -type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2013, were as
follows:
Balance at Balance at Due within
July 1, 2012 Deletions June 30, 2013 one year
Golf Course:
Capital leases payable $ 169,084 $ 125,348 $ 43,736 $ 43,736
The City of La Quinta entered into several capital lease agreements for the operation of the
Silver Rock Golf Resort. These lease agreements qualify as capital leases for accounting
purposes and, therefore, have been recorded at the present value of their future minimum
lease payments as of the inception date.
Obligations under capital leases are as follows:
57
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 9: Changes in Long -Term Liabilities — Business4ype Activities (Continued)
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. $ 43.736
Total capital leases payable as of June 30, 2013 $ 43,736
The following schedule summarizes the debt to maturity payments for capital leases:
Year Ending
June 30, Total
2014 $ 44,366
Total Payments 44,366
Less Amount Representing Interest (630)
Outstanding Principal $ 43.736
Note 10: Debt Without Governmental Commitment
The City of La Quinta sold Improvement Bonds issued pursuant to the California State
Improvement Act of 1915. The Bonds are payable from the annual installments collected on
the regular property tax bills sent to owners of property having unpaid assessments levied
against land benefited by the projects. The bonds are neither general obligations of the City
nor any other political subdivision and the full faith and credit of the City is not pledged for
repayment thereof, therefore, they are not included in the long-term liabilities in the
accompanying financial statements. The City is not liable for repayment of the debt, but is
only acting as agent for the property owners in collecting the assessments and forwarding the
collections to bondholders. The following is a summary of Improvement Bonds outstanding
at June 30, 2013. Amount
Outstanding at
Proceeds Maturity Interest Rate June 30. 2013
Assessment District No. 97-1 $ 705,262 9/2/2018 4.10% - 5.60% $ 240,000
Assessment District No. 2001-1 2,285,000 9/2/2015 5.00% - 6.60% 325,000
Note 11: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2013, are as
follows:
Due to Other
Funds
Non -Major
Governmental Total
Due From Other Funds
General Fund $ 26,866 $ 26,866
Total. $ 26,866 $ 26.866
58
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 11: Interfund Receivables and Payables (Continued)
The interfund balances were made to cover negative cash balances and other temporary
loans at June 30, 2013.
The composition of non -current interfund receivable and payable as of June 30, 2013, are as
follows:
Advances From Other Funds
Non -Major
Civic Center Governmental Golf Course TOTAL
Advances to Other Funds
General Fund $ 7,310,447 $ 2,875,703 $ 5,323,541 $ 15,509,691
a) 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, 2013, the Civic Center expansion was completed and the amount of the
advance was $7,310,447 outstanding. The advance accrues interest that would have
been earned by the Local Agency Investment Fund.
b) As of June 30, 2013, the General Fund has advanced to the Golf Course fund
$5,323,541. The advances accrue interest at the City's investment pool rate and are to
be repaid by the golf course out of future profits.
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, 2013, the amount of the outstanding advance was $2,009,184. 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, 2013, the
remaining balance of the advance was $866,519.
Note 12: Interfund Transfers
Transfers Out
Housing
Non -Major
General Fund
Authority PA 2
Governmental
Total
Transfers In
General Fund
$ -
$ -
$ 75,951
$ 75,951
Capital Improvement
698,884
24,972,905
4,087,645
29,759,434
Non -Major Governmental
2,000
-
3,668
5,668
Total.
$ 700,884
$ 24,972,905
$ 4,167,264
$ 29,841,053
�_T]
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 12: Interfund Transfers (Continued)
a) $75,951 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) $698,884 was transferred from the General Fund to the Capital Improvement Fund to
transfer various capital projects and sales tax rebate agreements.
c) $24,972,905 was transferred to the Capital Improvement Fund from the Housing Authority
PA No. 2 Fund to fund various capital projects within the project area of the former
redevelopment agency.
d) $4,087,645 was transferred to Capital Improvement Fund from various non -major funds to
fund various capital projects within the City.
e) A combined $5,668 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.
IV. OTHER INFORMATION
Note 13: Defined Benefit Pension Plan
Plan DescriDtion
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), a cost sharing multiple -employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost -of -living adjustments and death
benefits to plan members and beneficiaries. PERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit
provisions and all other requirements are established by State statute and City ordinance.
Copies of PERS' annual financial report may be obtained from their executive office:
400 P Street, Sacramento, CA 95814.
Funding Poli v
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 13.914% 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, 2013, the City's contribution of $869,462 was equal to the City's
required and actual contribution. Contributions are made from the General Fund, Golf Course
Fund and Information Technology Fund. The required contribution was determined as part of
the June 30, 2010, 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
L-Lf
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 13: Defined Benefit Pension Plan (Continued)
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, 2013, was 18 years.
Fiscal Year
6/30/2011
6/30/2012
6/30/2013
Note 14: Defined Contribution Plans
Plan Description
Three -Year Trend Information for
PERS
Required Percentage
Contrihution Contributed
$ 801,171 100%
906,917 100%
869,462 100%
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, 2013, there was one plan member. There are no required contributions by plan
members. During the 2012/13 fiscal year the City made no contributions to fund the
Supplemental Pension Savings Plan.
Note 15: Post -Employment Health Benefits
Plan Description
The City of La Quinta provides other postemployment benefits (OPEB) through a
single -employer defined benefit healthcare plan by contributing on behalf of all eligible
retirees' $112/month for calendar 2012 and $115/month for calendar 2013, 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. A contribution was made during 2012-2013 fiscal year
for $16,461.
61
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2013
Note 15: Post -Employment Health Benefits (Continued)
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
4,596
Adjustment to ARC
(27,180)
Annual OPEB cost
116,408
Contributions made
(16,461)
(Decrease) increase in net OPEB obligation
99,947
Net OPEB obligation (asset) - beginning of year
459.644
Net OPEB obligation (asset) - end of year $ 559,591
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan
and the net OPEB obligation for 2012-2013 and the two preceding years were as follows:
Actual
Fiscal
Annual
Contribution
Year
OPEB
(Net of
End
Cost
Adjustments)
6/30/2011
$ 119,105
$ 4,260
6/3012012
128,493
6,160
6/30/2013
116,408
16,461
Funded Status and Funding Progress
Percentage
of Annual
Net OPEB
OPEB Cost
Obligation
Contributed
(Asset)
3.58%
$ 337,311
4,79%
459,644
14.14%
559,591
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
_T_
Actual /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%
62
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 15: Post -Employment Health Benefits (Continued)
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, 2013, was twenty-six years. The number of active participants is 12.
Note 16: Self Insurance
The City of La Quinta is a member of the CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (Authority). The Authority is composed of 122 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 et
seq. The purpose of the 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 lines of coverage. The California JPIA 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 nine -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) Incurred 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.
The $2.5 million annual aggregate deductible is fully covered under a separate policy; as
such no portion of it is retained by the Authority. 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. The $3.0 million annual aggregate deductible is fully
retained by the Authority. (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.
63
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2013
Note 16: Self Insurance (Continued)
Costs of covered claims for subsidence losses are paid by reinsurance and excess
insurance with a pooled sub -limit of $25 million per occurrence. This $25 million
subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR,
(b) $10 million in reinsurance and (c) $10 million in excess insurance. The excess
insurance layer has a $10 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
$100,000 up to the reinsurance attachment point of $2 million are distributed based on
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 $5 million is purchased as part of a reinsurance policy, and Employer's
Liability losses from $5 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 2012-2013.
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 subjE!Ct 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.
64
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 17: Commitments and Contingencies
The following material construction commitments existed at June 30, 2013:
Project Name
Adams Street Bridge Improvements
Highway 111 at Washington Street
Note 18: Net Position and Fund Balances
Fund Balance Commitments
Contract Amount
8,287,990
730,136
Expenditures
to date as of
June 30, 2013
$ 5,246,415 $
Remaining
Commitments
3,041,575
730,136
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 2012-2013 budget plus $4,000,000 which totals $16,034,995 in the General Fund
for the year ended June 30, 2013. 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
persons and property within this city caused by such conditions as air pollution, fire, flood,
storm, epidemic, riot, 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, 2013, 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
2012-2013 budget which totals $2,836,820 in the General Fund for the year ended
June 30, 2013.
Restatements
Net Position in the government -wide statements have been restated by $3,908,944 to
correct the amount of capitalized expenditures relating to the Coral Mountain Project in
the prior years.
65
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2013
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 term commencing upon the completion of
the golf course. On January 14, 2005, the golf course was deemed to be complete and
management was turned over to the operator. The contract provides that the operator will
manage the day to day operations, hire employees, provide golf pro shop and food services,
manage all marketing and promotional activities, prepare the annual budget report for Council
consideration, and manage accounting and payroll functions. In addition to the annual
payment for management services, the City has advanced the operator $250,000 to pay for
golf course expenses. Twice a month the operator submits a request for reimbursement to
the City to replenish the City's advance. In addition, the agreement sets forth the
establishment of a capital reserve fund of 2% of green fees. For the fiscal year ending
June 30, 2013, the Golf Course had an operating loss before contributions and transfers of
$368,952.
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 terms of the agreement, the City shall make quarterly payments of 40%
of any TOT generated from the Hotel in an amount not to exceed $1,000,000 over a five year
period. The agreement terminates when either the $1,000,000 limit is reached or in
5 years whichever comes first. 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
without the City's prior written consent, which it may withhold at its discretion. The hotel
opened in November 2006. As of June 30, 2013, the City made $1,000,000 in reimbursement
payments to the owner leaving no outstanding balance.
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, 2013, the City made $2,118,783 in reimbursement payments to the owner leaving
an outstanding balance of $1,881,217.
M.-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1 X 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 California 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.
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.
The Successor Agency to the former Redevelopment Agency is reported as a fiduciary fund
(private purpose trust fund).
a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of
the following:
Cash and investments pooled with the City $ 59,723,121
Cash and investments with fiscal agent 43,406,872
$ 103,129,993
b. Loans Receivable
Owner Participation Acireement — Garff Properties, LI-C
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
Former 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
67
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
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, 2013, is $2,063,562.
Owner Participation Agreement — Torre Nissan
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, $1,500,000 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, 2013, construction was in
progress and $1,499,999 of the $1,500,000 had been expanded leaving an available
balance of $1.
c. Due from other Governments
La Quinta 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 Quinta Community Park. The advance accrues interest at the earnings rate of the
City's investment pool fund. As of June 30, 2013, the remaining balance of the advance
for the La Quinta Community Park is $1,052,040.
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, 2013, is $1,841,056.
Highway 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, 2013, the remaining balance of the advance is $502,775.
68
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21. Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
d. Long -Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor
Agency as of June 30, 2013, follows:
Balance at Transfers to the
Balance at Due within one
July 1, 2012 — City Additions Deletions
June 30, 2013 year
Tax allocation bonds
$ 134,810,000 $ $ $ 3,940,000
$ 130,870,000 $ 3,695,000
Provident Loan
1,473,612 (1,473,612) -
-
US Department of Agriculture 716,372 (716,372)
City loans
- 41,378,966 -
41,378,966
Revenue bonds
108-196000 - 1,890,000
106,305,000 2,495,000
Unamortized premiums/discounts (1,075,595) (51,450) (1,024,145)
Total $ 244,119,389 $ (2,189,984) $ 41,378,966 $ 5,778,550 $ 277,529,821 $ 6,190,000
* The loans were previously reported as enforcable obligations of the Successor Agency. The City determined that these were not enforcable
obligations in the current year since the City was receiving fuhderal funding to pay for the loan repayments.
Tax Allocation Bonds
As of June 30, 2013, the following issuances of Tax Allocation Bonds were outstanding:
Series 1998, Project Area No. I
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were
issued by the Former 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
Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable
semi-annually on March 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable solely from pledged tax increment revenues of
Project Area No. 1.
Term Bonds maturing September 1, 2028, are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013, and on each
September 1 thereafter, through September 1, 2028, at a price equal to the principal
amount thereof plus accrued interest. There are certain limitations regarding the
issuance of parity debt as further described in the official statement. A portion of the
proceeds was used to obtain a surety agreement to satisfy the bond reserve
requirement. The principal balance of outstanding bonds at June 30, 2013, is
$ 15,760,000.
M
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest
2014
$ 655,000
$ 802,490
2015
690,000
767,520
2016
725,000
730,730
2017
765,000
691,990
2018
800,000
651,300
2019-2023
4,690,000
2,567,500
2024-2028
6,035,000
1,179,750
2029-2032
1,400,000
36,400
Totals $ 15,760,000 $ 7,427,680
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 Former 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, 2013, is $5,285,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest —
2014
$ 145,000
$ 272,516
2015
150,000
264,956
2016
160,000
257,013
2017
170,000
248,556
2018
175,000
239,716
2019-2023
1,030,000
1,047,784
2024-2028
1,335,000
738,806
2029-2033
1,720,000
339,938
2034-2037
400,000
10,500
Totals $ 5,285,000 $ 3,419.785
70
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Series 2001, Project Area No. I
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, 2013,
is $48,000,000 with an unamortized discount of $314,588.
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest
2014
$ 1,565,000
$ 2,391,595
2015
1,645,000
2,311,345
2016
1,730,000
2,226,970
2017
1,815,000
2,138,345
2018
1,905,000
2,045,345
2019-2023
11,050,000
8,659,885
2024-2028
14,145,000
5,482,373
2029-2032
- 14,145,000
1,487,798
Totals
$ 48,000,000
$ 26,743,656
Series 20OZ Project Area No. 2
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 Quinta
redevelopment Project Area No. 1. The 2002 tax allocation bonds were issued at a
discount of $360,000 and issuance costs of $1,250,096.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds.
Interest Rates on serial bonds range from 1.75% and 4.00% and are payable
semi-annually on March 1 and September 1 of each year until maturity. Term bonds
accrue interest at 5.00% and 5.125% and mature on September 1, 2022 and
September 1, 2023. The interest and principal on the bonds are payable from
pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2013,
is $33,645,000 with an unamortized discount of 280,007.
71
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest
2014
$ 705,000
$ 1.695,656
2015
735,000
1,659,656
2016
770,000
1,622,031
2017
810,000
1,582,531
2018
855,000
1,540,906
2019-2023
4,945,000
7,003,781
2024-2028
6,330,000
5,583,175
2029-2033
18,495,000
3,004,659
Totals $ 33,645,000 $ 23,692,395
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 semi-annually on March 1 and September I 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, 2013, is $22,215,000 with an
unamortized discount of $183,871.
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal __
Interest
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
745,000
1,229,284
2019-2023
4,485,000
5,364,860
2024-2028
6,095,000
3,707,560
2029-2033
8,320,000
1,406,496
Totals $ 22,215,000 $ 17,048,262
72
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
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, 2013, is $5,965,000 with an
unamortized discount of $79,968.
The minimum annual requirements to amortize the bond payable as of June 30, 2013,
are as follows:
Principal
Interest —
2014
$ 35,000
$ 476,886
2015
40,000
475,005
2016
40,000
472,855
2017
40,000
470,705
2018
50,000
468,555
2019-2023
295,000
2,285,775
2024-2028
410,000
2,160,945
2029-2033
600,000
1,970,265
2034-2038
2,790,000
1,464,964
2039-2042
1,665,000
206,190
Totals $ 5,965,000 $ 10,452,145
Revenue Bonds
As of June 30, 2013, the following issuances of Revenue Bonds were outstandingi
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the
amount of $90,000,000 to finance projects benefiting low and moderate income
housing in La Quinta Redevelopment Project Area No. 1 and La Quinta
Redevelopment Project Area No. 2 and to advance refund the Agency's
Redevelopment Project Areas No. 1 and 2, 1995 Housing Tax Allocation Bonds. The
2004 local agency revenue bonds were issued with issuance costs of $2,600,229
and a premium of $476,496.
73
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Interest is payable semi-annually on March 1 and September 1 of each year,
commencing September 1, 2005. Interest payments range from 3% to 5.25% per
annum. The interest and principal on the bonds are payable from pledged tax
increment revenues.
Term bonds maturing on September 1, 2024, September 1, 2029 and
September 1, 2034, are subject to mandatory redemption from minimum sinking fund
payments, in part by lot, on September 1, 2017, September 1, 2025, and
September 1, 2030, respectively, and on each September 1 thereafter at a
redemption price equal to the principal amount thereof plus accrued interest to the
redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations
regarding the issuance of parity
debt as further described in the official
statement. The principal balance of
outstanding bonds at June 30, 2013, is $77,455,000 with an unamortized premium of
$118,094.
The minimum annual requirements to
amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest
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 2,410,000
3,473,881
2019-2023 14,090,000
15,279,906
2024-2028 18,165,000
11,107,313
2029-2033 23,235,000
5,912,966
2034-2037 11,040,000
572,975
Totals $ 77,455,000 $ 51,406,872
2011 Series A Local Agency Subordinate Taxable Revenue Bonds
On June 9, 2011, the La Quinta 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
74
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
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, 2013, is
$28,850,000 with an unamortized discount of $283,085.
The minimum annual requirements to amortize the bond payable as of
June 30, 2013, are as follows:
Principal
Interest
2014
$ 520,000
$ 2,171,7�7-
2015
540,000
2,152,267
2016
565,000
2,127,967
2017
590,000
2,099,717
2018
625,000
2,066,677
2019-2023
3,800,000
9,661,240
2024-2028
5,420,000
8,038,565
2029-2033
7,885,000
5,571,830
2034-2037
— 8,905,000
1,865,785.
Totals
Loans from the City of La Quinta
$ 28,850,000 $ 35,755,815
The City of La Quinta loaned money to the former Redevelopment Agency to cover
operating and capital shortfalls. These loans were paid back to the City during the
2010/11 fiscal year. This repayment was disallowed by the California Department of
Finance during their Asset Transfer Review of the former Redevelopment Agency
and demanded that this money be remitted to the State for distribution to the
effecting taxing entities. The City reversed this transaction and the payable to the
State is properly recorded by the Successor Agency as of June 30, 2013. In a letter
dated November 6, 2013 the California Department of Finance approved the loans as
enforceable obligations to be through Successor Agency property tax.
As of June 30, 2013, the amount due to the City of La Quinta was $41,378,966. This
consists of an outstanding loan of:
1) $6,000,000 loaned to the former Redevelopment Agency with repayments
beginning in 2015/16 and accrues interest at the current Local Agency
Investment Fund rate.
2) $6,000,000 loaned to the Redevelopment Agency requires repayments
beginning in 2015/16 and accrues interest at the current Local Agency
Investment Fund rate.
3) $10,000,000 loaned to the Redevelopment Agency requires repayments
beginning in 2015/16 and accrues interest at the current Local Agency
Investment Fund rate.
75
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30. 2013
Note 21: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
4) $10,000,000 loaned to the former Redevelopment Agency with repayments
beginning in 2015/16 and accrues interest at the current Local Agency
Investment Fund rate.
5) $9,378,966 loaned to the former Redevelopment Agency for the acquisition
of nine acres located on south side of Highway 111 and East of Dune Palms
Road with repayments beginning in 2015/16 and accrues interest at the
current Local Agency Investment Fund rate.
e. Pledged Tax Revenues
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 $413,121,610 with annual debt service requirements as
indicated below. For the current year, the total property tax revenue recognized by the
Successor Agency for the payment of indebtedness incurred was $19,993,315 and the
debt service obligation on the bonds was $19,268,806.
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, 2013, are $2,650,000.
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, 2013.
h. Restatement of Net Position
Net Position in the fiduciary statements have been restated by $4,238,688 to comply with
GASB Statement 65, Items Previously Reported as Assets and Liabilities, that was
implemented in the current year. GASB 65 amends prior guidance with respect to the
treatment of debt issuance costs. Debt issuance costs should be recognized in the
period incurred rather than reported on the statement of net position as deferred charges
and recognized systematically over the life of the debt. The accounting changes of this
statement should be applied retroactive and therefore the Successor Agency has
reported a restatement of beginning net position for unamortized debt issuance costs
(deferred charges) previously reported on the statement of net position to conform.
76
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2013
1. Extraordinary items
Loans included in long-term debt from Provident and US Department of Agriculture in
the amount of $2,189,984 were included in the transfer of the assets and liabilities of
the former redevelopment agency as of February 1, 2012 due to the dissolution of
the Former Redevelopment Agency. During the current year the California
Department of Finance disallowed these loans as enforceable obligations and as a
result were transferred back to the City. This transaction is shown as an extraordinary
loss in the Government Wide Statement of Activities and an extraordinary gain in the
Statement of Changes in Fiduciary Net Position.
77
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78
OTHER GOVERNMENTAL FUN
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 Gaminq Fund — To account for contributions for public safety activities to reduce crime and
increase public safety.
Lightin.
q and Landscape Special ssessment 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.
La Quinta Public Safety Officer F nd — To account for contributions to be distributed to public safety
officers disabled or killed in the line of duty.
Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of
approved artworks in a development with expenditures restricted to acquisition, installation, maintenance
and repair of artworks at approved sites.
South Coast Air Quality Fund — To account for contributions from the South Coast Air Quality
Management District. Use is limited to reduction and control of airborne pollutants.
AB 939 Fund — To account for the State mandated program to reduce waste sent to the landfills through
recycling efforts.
Develogment 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.
Measure A - To account for the revenues and expenditures related to Measure A monies.
Transportation Uniform Mitigation Fee - To account for the revenues and expenditures related to
Transportation Uniform Mitigation Fee monies.
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.
CAPITAL PROJECT FUNDS
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Infrastructure Fund - To account for the accumulation of resources provided through developer fees for
the acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new
Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources
received prior to this date, and is budgeted by the Council through adoption of the annual capital
improvement program budget.
Transoortation Fund, Parks and Recreations Fund, Library Development Fund. Community Center Fund,
Street Facility Fund, Park Facility Fund, Fire Facility Fund — To account for the accumulation of resources
provided through developer fees for the acquisition, construction, or improvement of the City's
infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight new
funds have been established to account for the specific impact areas of these fees, and are budgeted by
the Council through adoption of the annual Capital Improvement Program budget.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of,
governmental long-term debt principal and interest.
La Quinta Financing Authority Fund — To account for rental activity for the Civic Center and rental income
used to pay the Financing Authority Civic Center and 2004 Local Agency Revenue Bond debt obligations.
W
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81
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
Special Revenue Funds
State Gas
Federal
Tax
Library Assistance SLEBG
Assets:
Pooled cash and investments
$ 41,777
$ 2,717,455 $ $ 46,900
Receivables:
Accounts
-
-
Taxes
Notes and loans
-
-
Accrued interest
39
1,428 45
Due from other governments
87,791
- -
Total Assets
$ 129.607
$ 2,718,883 $ $ 46,945
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
12,914
12,914
- 46,945
- 2,718,883 -
129,607 -
- (12,914)
129,607 2,718.883 (12,914) 46,945,
$ 129,607 $ 2,718,883 $ �- —$ 46,945
82
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
(CONTINUED)
Special Revenue Funds
Indian
Lighting and
Public
Gaming
Landscaping
Quimby
Safety
Assets:
Pooled cash and investments
$ 1,188
$
$ 8,234,366
$ 29,243
Receivables:
Accounts
-
-
-
Taxes
Notes and loans
-
-
Accrued interest
7,503
27
Due from other governments
-
27,779
-
-
Total Assets
$ 1,188
$ 27,779
$ 8,241,869
$ 29,270
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
1,188
12,619
1,188 12,619
- 29,270
- 8,241,869 -
15,160 -
15,160 8,241,869 29,270
1,188 $ 27,779 $ 8,241,869 $ 29,270
83
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
Special Revenue Funds
Art in Public
South Coast
Development
Places
Air Quality
AB 939
Agreement
Assets:
Pooled cash and investments
$
664,962
$ 99,303
$
850,062
$ 201,827
Receivables:
Accounts
-
-
-
-
Taxes
Notes and loans
-
-
-
Accrued interest
727
83
777
183
Due from other governments
- -
-
-
-
Total Assets
$
665,689
$ 99,386
$
850,839
$ 202,010
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
9,908
$
Unearned revenues
-
-
Deposits payable
201,927
Due to other governments
Due to other funds
Advances from other funds
-
-
Total Liabilities
9,908
201,927
Deferred Inflows of Resources:
Unavailable revenues
-
-
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Restricted for:
Planning and development projects
89,478
850,839
Public safety
-
-
Community services
665,689
Public works
-
-
Capital Projects
83
Debt service
Unassigned
-
Total Fund Balances
665,689
89,478
850,839
83
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
665,689
$ 99,386
$
850,839
$ 202,010
84
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
(CONTINUED)
Special Revenue Funds
Justice
Law
Proposition
Assistance
Enforcement
113
Grant
Measure A
Assets:
Pooled cash and investments
$
171,411
$ 105
$
$
Receivables:
Accounts
-
-
Taxes
117,967
Notes and loans
-
-
Accrued interest
160
Due from other governments
12,692
-
-
Total Assets
$
184,263
$ 105
$
$
117,967
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
$
1,510
$
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
-
Total Liabilities
1,510
Deferred Inflows of Resources:
Unavailable revenues
-
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Restricted for:
Planning and development projects
-
105
Public safety
182,753
Community services
-
Public works
117,967
Capital Projects
-
Debt service
Unassigned
-
-
-
Total Fund Balances
182,753
105
117,967
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
184,263
$ 105
117,967
85
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2013
Special Revenue Funds- - Capital Project Funds
Transportation Housing
Uniform Authority PA
Mitigation Fee No. I Infrastructure Transportation
Assets:
Pooled cash and investments $ 1,850 $ 1,648,858 $ 23,115 $ 656,608
Receivables:
Accounts 7 55,542 - 65,245
Taxes - - -
Notes and loans 4,229,732 - -
Accrued interest 1,424 21 1,752
Due from other governments - -
Total Assets 1,857 $ 5,935,556 $ 23,136 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable $ 1,837 $ 1,065 $ $
Unearned revenues - -
Deposits payable 23,260
Due to other governments
Due to other funds
Advances from other funds
723,605
65,245
502,775
Total Liabilities
1,837
24,325
568,020
Deferred Inflows of Resources:
Unavailable revenues
-
2,167,143
-
Total Deferred Inflows of Resources
2,167,143
Fund Balances:
Nonspendable:
Notes and loans
2,062,589
Restricted for:
Planning and development projects
1,681,499
Public safety
Community services
-
Public works
20
- -
Capital Projects
-
23,136 155,585
Debt service
Unassigned
-
Total Fund Balances
20
3,7",088
23,136 155,585
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $
1,857 $
5,935,556 $
23,136 $ 723,605
T.-
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2013 (CONTINUED)
Capital Projects Funds
Parks and Library Community Street
Recreation Development Center Facility
Assets:
Pooled cash and investments $ - $ $ 1,212,677 $
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
1,100
$ 1,213,777 $
1,052,040 1,841,056
2,009,184
2,009,184
1,213,777
(1,052,040) (1,841,056) (2,009,184)
(1,052,040) (1,841,056) 1,213,777 (2,009,184)
$ 1,213,777 $
87
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
Debt Service
Capital Projects Funds Funds
Total
Financing Governmental
Park Facil!!L Fire Fac Authority Funds
Assets:
Pooled cash and investments $ - $ - $ 2,234 $ 16,603,941
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Notes and loans
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
120,794
117,967
4,229,732
15,269
- 128.262
2,234 $ 21,215,965
14,320
66,433
225,187
3,395,871
1,333 26,866
866.519 2,875,703
867,852 6,604,380
- 2,167,143
2,167,143
2,062,589
2,621,921
258,968
11,626,441
262,754
1,392,581
2,234 2,234
(867.852) - (5,7812L6L
(867,852 2.234 12,444,442
2,234 $ 21,215,965
88
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M.*
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2013
Revenues:
Taxes
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Special Revenue Funds
State Gas
Tax Library
999,653 2,197,316
129 7,206
999,782 2,204,522
Federal
Assistance SLEBG
52,628 75,000
191
52.628 75,191
Expenditures:
Current:
General government
Public safety
Planning and development
Community services - 1,479,616
Public works 994,896 -
Capital outlay -
Debt service:
Principal retirement
Interest and fiscal charges -
Total Expenditures 994,896 1,479,616 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,886 724,906 52,628 75,191
Other Financing Sources (Uses):
Transfers in (12,410) (56,660) (54,709)
Transfers out
Proceeds from sale of capital asset
Total Other Financing Sources - (12,410) (56,660) (54,LO91
(Uses)
Fund Balances, Beginning of Year 124,721 2,006.387 (8,882) 26,463
Fund Balances, End of Year $ 129,607 $ 2,718,883 $ (12,914) $ 46,945
We,
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2013 (CONTINUED
Soacial Revenue Funds
Indian Lighting and
Gaming Landscaping Quimby Public Safety
Revenues:
Taxes $ $ - $ $
Assessments 954,058
Intergovernmental -
Charges for services -
Use of money and property 42,163 149
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)
Fund Balances, Beginning of Year
Fund Balances, End of Year
954,058 42,163
- 2,185
960,000 -
960,000 2,185
(5,942) 39,978 149
- 2,000
(88,286) -
- (88,286) 2,000
21,102 8,290,177 27,121
15,160 $ 8,241,869 $ 29,270
91
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2013
Revenues:
Taxes
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
S[)ecial Revenue Funds
Art in Public South Coast
Places Air Quality
45,622
4,295 458
49,475 -
Development
AB 939 Agreement
4,446 83
53,770 46,080 4,446 83
Expenditures:
Current:
General government
Public safety
-
Planning and development
-
35,360
79,457
Community services
10,231
-
Public works
Capital outlay
43,343
Debt service:
Principal retirement
-
Interest and fiscal charges
-
-
-
Total Expenditures
53,574
35,360
79,457 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures
196
10.720
(75,01 1)_ 83
Other Financing Sources (Uses):
Transfers in
Transfers out
(200,000)
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
(200,000)
Fund Balances, Beginning of Year
865,493
78.758
925,850 -
Fund Balances, End of Year
$ 665,689 $
89,478
850,839 $ 83
92
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2013
(CONTINUED)
Special Revenue Funds
Justice
Law
Proposition
Assistance
Enforcement
Ill_
Grant
Measure A
Revenues:
Taxes
$
$
$
$ 117,967
Assessments
-
-
Intergovernmental
48,003
287,307
9,722
Charges for services
-
-
-
Use of money and property
839
105
Developer participation
-
-
Miscellaneous
-
-
-
-
Total Revenues
48,842
287,412
9,722
117,967
Expenditures:
Current:
General government -
Public safety 57,692
Planning and development -
Community services
Public works -
Capital outlay -
Debt service:
Principal retirement -
Interest and fiscal charges -
Total Expenditures 57,692
Excess (Deficiency) of Revenues
Over (Under) Expenditures (8,850)
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital asset
Total Other Financing Sources
287,412
(287,307)
9,722 117,967_
(9,722)
(Uses) (287,307) (9,722)
Fund Balances, Beginning of Year 191,603 - -
Fund Balances, End of Year $ 182,753 $ 105 $ $ 117,967
93
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30. 2013
Special Revenue Funds Capital Projects Funds
Transportation Housing
Uniform Authority PA
Mitigation Fee No. I Infrastructure Transportation
Revenues:
Taxes $ - $ $ $
Assessments
Intergovernmental
Charges for services - -
Use of money and property 20 437,959
Developer participation - -
Miscellaneous 39.147
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)
Fund Balances, Beginning of Year
Fund Balances, End of Year
20 477,106
73 10,840
- 393,617
64,308
73 468,765
330,140
35,194
330,140
20 146,966
35,194
73 433,571
(309,773) (244,738) (2,899,991)
121,652
88,121) (244,738) (2,899,991)
- 3,785,243 267,801 2,622,005
20 $ 3,744,088 $ 23,136 $ 155,585
94
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2013 (CONTINUED)
CaDital Pralects Funds
Parks and Library Community
Recreation Development Center Street Facility
Revenues:
Taxes $ $ $ $
Assessments
Intergovernmental
Charges for services
Use of money and property 6,151 -
Developer participation 136,318 26,674 8,276 16,957
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)
Fund Balances, Beginning of Year
Fund Balances, End of Year
136,318 26,674 14,427 16,957
4,542 7,400 8,037
4,542 7,400 8,037
131,776 19,274 14,427 8,920
- 3,668
3,668
(1,183.816) �1,860,3391 1,199,350 _(2,021,772)
$ (1,052,OLOI $ (1,841,05§1 $ 1,213,777 $ (2,009,184)_
95
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2013
Debt Service
Capital Projects Funds Funds
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)
Fund Balances, Beginning of Year
Fund Balances, End of Year
Financing
Park Facility Fire Facility Authority
Total
Governmental
Funds
$ $ 117,967
954,058
3,715,251
5,403 5,403
3 673,130 1,188,240
3,665 49,375 - 684,357
- - 103,455
3,668 49,375 678,533 6,768,731
5,703 5,703
- 57,692
444,957
1,492,032
1,954,896
43,343
- 470,000 470,000
3.585 203,130 261,888
3,585 678,833 4,730,511
3,668 45,790 (300) 2,038,220
- - 5,668
(3,668) (4,167,264)
121,652
(3,668) (4,039,944)
(913,642) 2,534 14,446,166
$ $ (867&521 2,234 $ 12,444,442
96
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 124,721 $ 124,721 $ 124,721 $
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
994,700
200
1,119,621
994,700 999,653
200 129
ij 19,621 1,124,503
4,953
(711
994,900
994,900
994,896
4
994,900
994,900
994,896
4
$ 124,721
$ 124,721
$ 129,607 $
4,886
97
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2, 0 0 0,3 8-7
$ 2,006,387
$2,006,387
$ -
Resources (inflows):
Intergovernmental
2,043,357
2,043,357
2,197,316
153,959
Use of money and property
- 6,600
6,600
7,206
606
Amounts Available for Appropriation
4,056,344
4,056,344
4,210,909
154,565
Charges to Appropriation (Outflow):
Community services
1,696,598
1,725,998
1,479,616
246,382
Transfers out
221,279
221,279
12,410
208,869
Total Charges to Appropriations
1,917,877
1,947,277
1,492,026
455,251
Budgetary Fund Balance, June 30
$2,138,467
$ 2,109,067
$2,718,883
$ 609,816
"T'
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (8,882)
$ (8,882)
$ (8,882)
$
Resources (inflows):
Intergovernmental
300,350
300,350
52,628
(247,722)
Amounts Available for Appropriation
291,468
291,468
43,746
(247,722)
Charges to Appropriation (Outflow):
Transfers out
175,000
274,985
56,660
218,325
Total Charges to Appropriations
175,000
274,985
56,660
218,325
Budgetary Fund Balance, June 30
$ 116,468
$ 16,483
1__JL2,914
1
$ (29,397)
M
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 26,463
$ 26,463
$ 26,463
$
Resources (Inflows):
Intergovernmental
-
100,000
75,000
(25,000)
Use of money and property
-
-
191
191
Amounts Available for Appropriation
2 i,-4 6-3
126,463
101,654
(24,809)
Charges to Appropriation (Outflow):
Transfers out
-
100,000
54,709
45,291
Total Charges to Appropriations
100,000
54,709
45,291
Budgetary Fund Balance, June 30
$ 26,463
$ 26,463
$ 46,945
$ 20,482
100
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2013
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 S - $ - $ - $
Resources (inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
105,844
105,844
118,308 118,308 118,308
118,308 118,308 118,308
$ (12,464) $ (118,308) $ $ 118,308
101
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPING
YEAR ENDED JUNE 30,2013
Budgetary Fund Balance, July I
Resources (inflows):
Assessments
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 21,102 $ 21,102
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 21,102 $
960,000 960,000 954,058 (5,942)
981,102 981,102 975,160 (5,94?1
960,000 960,000 960,000
960,000 960,000 960,000
$ 21,102 $ 21,102 $ 15,160 $ (5,94A
102
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
ANegative)
Budgetary Fund Balance, July 1
$8,290,177
$ 8,290,177
$ 8,290,177
Resources (inflows):
Use of money and property
20,000
20,000
42,163
22,163
Amounts Available for Appropriation
8,310,177
8,310,177
8,332,340
22,163
Charges to Appropriation (Outflow):
Community services
-
202,000
2,185
199,815
Transfers out
1,443,380
9,062,080
88,286
8,973,794
Total Charges to Appropriations
1,443,380
9,264,080
90,471
9,173,609
Budgetary Fund Balance, June 30
$6,866,797
$ _L953,903)
$8,241,869
$ 9,195,772
103
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
27,121
$ 27,121
$ 27,121
$ -
Resources (inflows):
Use of money and property
100
100
149
49
Transfers in
2,000
2,000
2,000
-
Amounts Available for Appropriation
29,221
29,221
29,270
49
Charges to Appropriation (Outflow):
Public safety
2,000
2,000
-
2,000
Total Charges to Appropriations
2,000
2,000
2,000_
Budgetary Fund Balance, June 30
$ 27,221
$ 27,221
$ 29,270
$ 2,049
104
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 865,493
$ 865,493
$ 865,493
$ -
Resources (Inflows):
Use of money and property
2,300
2,300
4,295
1,995
Developer participation
97,500
97,500
49,475
(48,025)
Amounts Available for Appropriation
965,293
965,293
919,263
(46,030)
Charges to Appropriation (Outflow):
Community services
24,700
24,700
10,231
14,469
Capital outlay
111,500
111,500
43,343
68,157
Transfers out
-
400,000
200,000
200,000
Total Charges to Appropriations
136,200
536,200
253,574
282,626
Budgetary Fund Balance, June 30
$ 829,093
$ 429,093
$ 665,689
$ 236,596
105
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2013
Budgetary Fund Balance, July 1
Resources (inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 78,758 $ 78,758 $ 78,758 $
416,700 416,700
400 400
495,858 495,858
45,622 (371,078)
458 58
124.838 (371,020)
40,200 40,200 35,360 4,840
375,500 375,500 - 375,500
415,700 415,700 --�-5.360 380,340
$ 80,158 $ 80,158 $ 89,478 $ 9,320
106
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 925,850 $ 925,850 $ 925,850 $
Resources (inflows):
Use of money and property
4,300
4.300
4,446
146
Amounts Available for Appropriation
930,150
930,150
930,296
146
Charges to Appropriation (Outflow):
Planning and development
101,125
108,509
79,457
29,052
Transfers out
-
199,490
-
199,490
Total Charges to Appropriations
101,125
307,999
79,457
228,542
Budgetary Fund Balance, June 30
$ 829,025
$ 622,151
$ 850,839
$ 228,688
107
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LAW ENFORCEMENT
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 191,603
$ 191,603
$ 191,603
$
Resources (inflows):
Intergovernmental
230,247
230,247
48,003
(182,244)
Use of money and property
100
100
839
739
Amounts Available for Appropriation
421,950
421,950
240,445
(181,505)
Charges to Appropriation (Outflow):
Public safety
68,490
68,490
57,692
10,798
Total Charges to Appropriations
68,490
68,490
57,692
10,798
Budgetary Fund Balance, June 30
$ 353,460
$ 353,460
$ 182,753
$ (170,707)
108
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION 1 B
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Neqative)
Budgetary Fund Balance, July 1
$ -
-
$ -
$
Resources (inflows):
Intergovernmental
293,380
287,307
287,307
-
Use of money and property
-
-
105
105
Amounts Available for Appropriation
293,380
287,307
287,412
105
Charges to Appropriation (Outflow):
Transfers out
-
287,307
287,307
-
Total Charges to Appropriations
-
287,307
287,307
Budgetary Fund Balance, June 30
$ 293,380
$
$ 105
$ 105
109
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
JUSTICE ASSISTANCE GRANT
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ -
$ -
$
Resources (Inflows):
Intergovernmental
12,033
9,722
(2,311)
Amounts Available for Appropriation
12,033
9,722
(2,311)
Charges to Appropriation (Outflow):
Transfers out
12,033
9,722
2,311
Total Charges to Appropriations
12,033
9,722
2,311
Budgetary Fund Balance, June 30
$ -
$ -
$
110
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30,2013
Budgetary Fund Balance, July 1
Resources (inflows):
Taxes
Variance with
Final Budget
Budget Amounts Actual Positive
Origin I Final Amounts (Negative)
412,500
Amounts Available for Appropriation 412,500
117,967 117,967
117,967 117,967
Budgetary Fund Balance, June 30 $ 412,500 $ $ 117,967 $ 117,967
ill
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION UNIFORM MITIGATION FEE
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $
Resources (inflows):
Taxes
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
20 20
- - 20 20
412,500 412,500 - 412,500
412,500 412,500 412,500
$ (11_2,500) $ (412,500) $ 20 $ 412,520
112
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY PA NO. 1
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$3,785,243
$ 3,785,243
$ 3,785,243
$ -
Resources (inflows):
Use of money and property
243,800
243,800
437,959
194,159
Miscellaneous
125,000
125,000
39,147
(85,853)
Transfers in
192,876
192,876
-
(192,876)
Proceeds from sale of capital asset
-
-
121,652
121,652
Amounts Available for Appropriation
4,346,919
4,346,919
4,384,001
37,082
Charges to Appropriation (Outflow):
Planning and development
419,550
484,500
330,140
154,360
Transfers out
-
118,150
309,773
(191,623)
Total Charges to Appropriations
419,550
602,650
639,913
(37,263)
Budgetary Fund Balance, June 30
$3,927,369
$ 3,744,269
$3,744,088
$ (181)
113
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30,2013
Budgetary Fund Balance, July 1
Resources (inflows):
Intergovernmental
Contributions
Developer participation
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ (90,661) $ (90,661)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ (90,661) $
20,714,717
3,101,418
(17,613,299)
-
437,755
437,755
841,244
446,146
(395,098)
4,036,253
81,077.876
29,759,434
(51,318,442)
3,945,592
102,543,176
33,65
(68,889,084)
-
25,281,358
25,281,358
-
4,036,253
77,989,932
8,463,395
69,526,537
4,036,253
103,271,290
33,744,753
69,526,537_
$ (90,661) $ _IZ?�,�114 _1__110,6611 $ 637,453
114
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30,2013
Budgetary Fund Balance, July 1
Resources (inflows):
Developer participation
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (7,169,490) $ (7,169.490) $(7,169,490) $
127,600 127,600 96,322 (31,278)
(7,041,890) (7,041,890) (7,073,168) (31,278)
201,939 201,939 203,557 (1,618)
35,000 35,000 28,764 6,236
236,939 236,939 232,321 4,618
$ (7,278,§n9 _�_ �278,8�29 _EZ,305,489L $ (26,6LOI
115
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INFRASTRUCTURE
YEAR ENDED JUNE 30, 2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 267.801
$ 267,801
$ 267,801
$ -
Resources (inflows):
Use of money and property
100
100
73
(27)
Amounts Available for Appropriation
267,901
267,901
267,874
(27)_
Charges to Appropriation (Outflow):
Transfers out
-
242,074
244,738
(2,664)
Total Charges to Appropriations
-
242,074
244,738
(2,664)
Budgetary Fund Balance, June 30
$ 267,901
$ 25,827
$ 23,136
$ .. j2,69jl
116
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$2,622,005
$ 2,622,005
$2,622,005
$ -
Resources (inflows):
Use of money and property
1,800
1,800
10,840
9,040
Developer participation
441,500
441,500
393,617
(47,883)
Miscellaneous
80,000
80,000
64,308
(15,692)
Amounts Available for Appropriation
3,145,305
3,145,305
3,090,770
(54,535)
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
19,500
19,500
35,194
(15,694)
Transfers out
345,000
2,746,845
2,899,991
(153,146)
Total Charges to Appropriations
364,500
2,766,345
2,935,185
(11 68,840)_
Budgetary Fund Balance, June 30
$2,780,805
$ 378,960
$ 155,585
$ (223,375)
117
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,183,816)
$ (1,183,816)
$(1,183,816)
$
Resources (inflows):
Developer participation
89,200
89,200
136,318
47,118
Amounts Available for Appropriation
(1,094,616).
(1,094,6191
(1,047,498)
47,111 8_
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
6,000
6,000
4,542
1,458
Total Charges to Appropriations
6,000
6,000
4,542
1,458
Budgetary Fund Balance, June 30
$ (1,109,616
1
$ (1,100,616L
$(1,052,0421
-
$ 48,576=
118
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts—
(Negative)
Budgetary Fund Balance, July 1
$ (1,860,330)
$ (1,860,330)
$(1,860,330)
$
Resources (inflows):
Developer participation
35,500
35,500
26,674
(8,826)
Amounts Available for Appropriation
(1,824,830).
(1,824,8321
(1,833,656)
(8,826L
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
9,400
9,400
7,400
2,000
Total Charges to Appropriations
9,400
9,400
7,400
2,000
Budgetary Fund Balance, June 30
$ (1,834,230L
$ (1,834,2301
_1(1,841,056
j
$ (6,8?R
119
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30,2013
Budgetary Fund Balance, July 1
Resources (inflows):
Use of money and property
Developer participation
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$1,199,350 $ 1,199,350
6,000 6,000
7,400 7,400
1,212,750 1,212,750
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 1,199,350
$ -
6,151
151
8,276
876
1,213,777
1,027
$1,212,750 $ 1,212,750 $1,213,777 $ 1,027
120
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30,2013
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
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ (2,021,772) $ (2,021,772)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$(2,021,772) $
17,800 17,800 16,957 (843)
2.200 2,200 3,668 1,468
(2,001,772). (2,001,772) (2,001,147) 625
10,000 10,000 8,037 1,963
10,000 10,000 8,037 1,963
$ (2,011,7721 $ (2,011,7L2) _1(_2,009,184) $ 2,588
121
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$
$
$ -
$ -
Resources (inflows):
Use of money and property
3
3
Developer participation
2,200
2,200
3,665
1,465
Amounts Available for Appropriation
2,200
2,200
3,668
1,468
Charges to Appropriation (Outflow):
Transfers out
2,200
2,200
3,668
(1,468)
Total Charges to Appropriations
2,200
2,200
3,668
Budgetary Fund Balance, June 30
$ -
$
$
$
122
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30,2013
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
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ (913,642) $ (913,642)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ (913,642) $
29,800 29,800 49,375 19,575
(883,842) (883,842) (864,267) 19,575
4,700 4,700 3,585 1,115
4,700 4,700 3,585 1,115
$ (888,542) $ (888,5�a _Lj� �7,852 $ 20,690
123
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30,2013
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budaetary Fund Balance, July 1 $ 2,534 $ 2,534 $ 2,534 $
Resources (inflows):
Charges for services
5,000
5,000
5,403
403
Use of money and property
673,130
673,130
673,130
-
Amounts Available for Appropriation
680,664
680,664
681,067
403
Charges to Appropriation (Outflow):
General government
5,000
5,000
5,703
(703)
Debt service:
Principal retirement
470,000
470,000
470,000
-
Interest and fiscal charges
203,130
203,130
203,130
Total Charges to Appropriations
678,130
678,130
678,833
(703)_
Budgetary Fund Balance, June 30
$ 2,534
$ 2,534
$ 2,234
$ (30T
124
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to departments
within the City. Costs of materials and services used are accumulated in this fund and charged to the
user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund — used to account for the ultimate replacement of City owned and
operated vehicles and equipment
Information Technology Fund — used to account for the purchase and replacement of information
systems.
Park Equipment and Facilities Fund — used to account for the purchase and replacement of City owned
park facility infrastructure.
125
CITY OF LA QUINTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30. 2013
Governmental Activities - Internal Service Funds
Park
Equipment
Information
Equipment and
Replacement
Technology
Facilities
Totals
Assets:
Current:
Cash and investments
$ 2,437,759
$ 1,321,859
$ 1,159,814
$ 4,919,432
Receivables:
Accrued interest
2,182
1,170
1,015
4,367
Total Current Assets
2,439,941
1,323,029
1,160.829
4,923,799
Noncurrent:
Capital assets - net of accumulated depreciation
646,096
191,526
15,610,923
16,448,545
Total Noncurrent Assets
646,096
191,526
15,610,923
16,448,545
Total Assets
$ 3,086,037
$ 1,514,555
$ 16,771,752
$ 21,372,344
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable
$ 13,471
$ 44,535
$
$ 58,006
Accrued liabilities
-
4,462
4,462
Accrued compensated absences
5,469
5,469
Total Current Liabilities
1 L,47L
54,466
67,937
Noncurrent:
Accrued compensated absences
2,857
2.857
Total Noncurrent Liabilities
2,857
2,857
Total Liabilities
13,471
57.323
70,794
Net Position:
Net investment in capital assets
646,096
191,528
15,610,923
16,448,547
Unrestricted
2,426,470
1,265,704
1,160,829
4,853,003
Total Net Position
3,072,566
1,457,232
16,77L,752
21,301,550
Total Liabilities and Net Position
$ 3,086,037
$ 1,514,555
$ 16,77L,�752
$ 21,372,344
126
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2013
Governmental Activities - Internal Service Funds
Park
Equipment Information Equipment
Replacement Technology and Facilities Totals
Operating Revenues:
Sales and service charges $ 584,823 $ 491,580 $ 502,523 $ 1,578,926
Total Operating Revenues
584,823
491,580
502,523
1,578,926
Operating Expenses:
Administration and general
-
112,025
-
112,025
Fuel and oil
83,618
-
83,618
Maintenance and parts
103,764
-
103,764
Contract services
17,476
50,246
67,722
Software and supplies
-
143,651
-
143,651
Depreciation expense
139,766
84,525
549,715
774,006
Other
-
14,727
-
14,727
Total Operating Expenses
344,624
405,174
549,715
1,299,513
Operating Income (Loss)
240,199
86,406
(47,192)
279,4113
Nonoperating Revenues (Expenses):
Interest revenue
11,722
6,180
5,054
22,956
Gain (loss) on disposal of capital assets
5,975
-
-
5,975
Total Nonoperating
Revenues(Expenses)
17,697
6,180
5,054
28,931
Income (Loss) Before Contributions
257,896
92,586
(42,138)
308,344
Contributions
24,605
-
24,605
Changes in Net Position
282,501
92,586
(42,138)
332,949
Net Position:
Beginning of Year
2,790,065
1,364,646
16,813,890
20,968,601
End of Fiscal Year
$ 3,072,566
$ 1,457,232
$ 16,771,752
$ 21,301,550
127
CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2013
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
$ 584,823
$ 491,820
$ 502,523
1,579,166
Cash received from/(paid to) interfund service provided
(202,651)
(164,595)
-
(367,246)
Cash paid to suppliers for goods and services
-
(112,898)
-
(112,898)
Net Cash Provided (Used) by Operating Activities
382,172
214,327
502,523
1,099,022
Cash Flows from Capital
and Related Financing Activities:
Proceeds from sales of capital assets
5,975
-
5,975
Net Cash Provided (Used) by
Capital and Related Financing Activities
5,975
-
5,975
Cash Flows from Investing Activities:
Interest received
10.193
5,368
4,253
19,814
Net Cash Provided (Used) by
Investing Activities
10,193
5r368
4,253
19,814
Net Increase (Decrease) in Cash
and Cash Equivalents
398,340
219,695
506,776
1,124,811
Cash and Cash Equivalents at Beginning of Year
2,039,419
1,102,164
653.038
3,794,621
Cash and Cash Equivalents at End of Year
$ 2,437,759
$ 1,321,859
$ 1,159,814
$ 4,919,432
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
not 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
$ 240,199 $ 86,406 $ (47r`19_2) $ 279,413
139,766
84,526
549,715 774,007
-
240
- 240
2,207
44,028
46,235
-
514
514
-
(1,3871
- (1,3871
141,973
127,921
549,715 819,609
$ 382,172
$ 214,327 $
502,523 $ 1,099,022
Non -Cash Investing, Capital, and Financing Activities:
There were no non -cash transactions in the current year.
128
AGENCYFUNDS
Agency funds are used to account for assets held by the City as an agent for individual, private
organizations and other governmental units. The agency funds and their purposes are as follows:
The City of La Quinta has the following agency funds:
Assessment District No. 97-1 and 2001-1 — To account for assessments paid to the City for debt service
payments on bond issues used to finance sewer improvements.
129
CITY OF LA QUINTA
COMBINING STATEMENT OF NET POSITION
ALL AGENCY FUNDS
JUNE 30, 2013
Assessment Assessment
District No. 97- District No.
2001-1 Totals
Assets:
Pooled cash and investments $ 143,592 $ 445,489 $ 589,081
Receivables:
Taxes
Accrued interest
Total Assets
Liabilities:
Deposits payable
Total Liabilities
987 10,626 11,613
121 381 502
144,700 $ 456,496 $ 601,196
$ 144,700 $ 456�496 $ 601,196
$ 144,700 $ 456,496 $ 6ql,196
130
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2013
Balance
Balance
7/1/2012
Additions
Deductions
6/30/2013
Assessment District No. 97-1
Assets:
Pooled cash and investments
$
128,183
$
74,347
$
58,938
$
143,592
Receivables:
Taxes
-
987
-
987
Accrued interest
39
121
39
121
Total Assets
$
128,222
$
75,455
$
58,977
$
144,700
Liabilities:
Deposits payable
$
128.222
$
78,314
$
61,836
$
144,700
Total Liabilities
$
128,222
$
78,314
$
61,836
$
144,700
Assessment District No. 2001-1
Assets:
Pooled cash and investments
$
422,049
$
202,803
$
179,363
$
445,489
Receivables:
Taxes
9,041
10,626
9,041
10,626
Accrued interest
125
380
124
381
Total Assets
$
431,215
$
213,809
$
188,528
$
456,496
Liabilities:
Deposits payable
$
431,215
$
226,629
$
201,348
$
456,496
Total Liabilities
$
431,215
$
226,629
$
201,348
$
456,496_
Totals - All Agency Funds
Assets:
Pooled cash and investments
$
550,232
$
277,150
$
238,301
$
589,081
Receivables:
Taxes
9,041
11,613
9,041
11,613
Accrued interest
164
501
163
502
Total Assets
$
559,437
$
289,264
$
247,505
$
601,196_
Liabilities:
Deposits payable
$
559,437
$
304,943
$
263,184
$
601,196
Total Liabilities
$
559,437
$
304943
$
263,184
$
601,196
131
THIS PAGE INTENTIONALLY LEFT BLANK
132
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. 134
Revenue Capacity
These schedules obtain information to help the reader assess the
government's most significant local revenue source, the property tax. 147
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. 152
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. 159
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. 162
133
CITY OF LA QUINTA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2004
Z005
2006
2007
2008
Governmental activities:
Net investment in capital assets
$ 249.059,500 $
233,361,129 $
253,559,117
$ 300,220,033
$ 343,019,328
Restricted
44,415,966
43,421,857
65,159,623
49,277,895
86,041,189
Unrestricted
45,169,328
60,361,071
86,129,376
106,939,577
79,642,102
Total governmental activities Net Position
33�,644,7�4 $
337,144,057 $
404,848,116
$ 456,437,505
$ 508,702,619
Business -type activities:
Net investment in capital assets $ $ 41,300,846 $ 42,075,172 $ 42,692,025 $ 42,778,015
Restricted - - -
Unrestricted (626,658) (1,665,646) (2,385,462 (3,109,524
Total business -type activities Net Position $ 40,674,188 $ 40,409,526 $ 40,306,563 $ 39,668,491
Primary government
Net investment in capital assets
$ 249,059,500 $
274,661,975 $
295,634,289
$ 342,912,058
$ 385,797,343
Restricted
44,415,966
43.421,857
65,159,623
49,277,895
86,041,189
Unrestricted
45,169,328
59,734,413
84,463,730
104,554,115
76,532,578
Total primary government Net Position
$ 338,644,794 $
377,818,245 $
445,257,642
$ 496,744,068
$ 548,371,110
Source: City of La Quinta
134
TABLE 1
2009 2010 2011 2012 2013
$ 323,669,955 $ 336,459,272 $ 276,787,752 $ 534,388,479 $ 529,681,342
105,297,168 96,332,870 107,042,126 26,585,382 49,598,397
96,654,981 77,187,433 97,009,428 29,e32.811 83,399.745
$ 525,622,104 $ 509,979,575 $ 480,839,306 $ 590,806,672 $ 662,679,484
42,536,608 $ 42,879,482 $ 42,491,051 $ 42,105,683 $ 41,741,443
(3,937,45�) — (4,863,848) (4,918,951 (4,745,89 - (4,750,60
38,599,154 $ 38,015,634 $ 37,572,100 $ 37,359,791 $ 36,990,839
$ 366,206,563 $ 379,338,754 $ 319,278,803 $ 576,494,162 $ 571,422,785
105,297,168 96,332,870 107,042,126 26,585,382 49,598,397
92,717,527 72,323,585 92,090,477 25,086,919 78.649.141
$ 564,221,258 $ 547,995,209 $ 618,411,406 $ 628,166,463 $ 699,670,323
135
CITY OF LA QUINTA
Changes in Net Position
Last Tan Fiscal Years
(accrual basis of accounting)
Expenses:
Governmental activities:
General government
Public safety
Community services
Planning and development
Public works
Contribution to other agencies
Interest on long-term debt
Total governmental activities expenses
Business-iype activities:
Golf Course
Total business -type activities expenses
Total primary government expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Planning and development
Community services
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenues
Business -type activities:
Charges for services:
Golf Course
Capital grants and conidbutions
Total business -type activities
program revenues
Total primary government
program revenues
Net revenues (expenses):
Governmental activities
Business-iype activities
Total net revenues (expenses)
General revenues and other changes in Nat Position:
Governmental activities:
Texas:
Property taxes
Tax increment
Sales tax
Trun5;unt 0�uplgn uy loxes
Franchise taxes
Business license taxes
Othertaxes
Investment Income
Motor vehicle in lieu, unrestricted
Gain (loss) on sale of capital assets
Miscellaneous
Extraordinary gain/loss on dissolution of RDA
Transfers
Total governmental activities
Business -type acllvltles�
Investment income
Gain (loss) on sale of capital assets
Transfers
Total buslness-iype activities
Total primary government
Changes in Net Position
Governmental activities
Business -type activities
Total primary government
The transfer was for land& golf course improvements transferred to the Enterprise Fund
Source: City of LaQuInta
Fiscal Year
2004
2005
2006
2007
2008
4,319,778 $
3,595.906 $
4.229,871 $
6,284,342 S
6,953,073
10.256,463
8,512,875
9,065,244
12,724,100
13,472,036
1,446,999
1,157,141
1,426,033
4,299.453
5,797,116
7.526,977
5.752,239
5.906.915
7.736.520
35,323,058
6,003,013
9,101,582
10.006,335
10.511,874
11,097,526
9,658,779
15,265,051
15,494,656
15,163,422
15,522,441
39,212,009
43,384,794
46,129,054
56,719,711
88,166,050
1,877,291
4,523,146
4,520,173
4,761,581
1,877,291
4,523,146
4,520,173
4,761,581
39,212,009
45,262,085
50,652,200
61,239,884
92,927,631
337,376
445,663
717.849
60,530
8.328
4,004,621
4,438,115
4.168,206
2,659,515
2,050.492
662,737
754,938
1.873,676
169.643
134,211
252,677
252,501
428,947
387,065
374,092
1,613,993
2,815,703
3,021,379
2,244.156
1.900,437
1,799,503
1,935.578
3,603.173
3.796.495
5,905,664
12,090,143
18,591,423
33,918,901
17,601,131
50,090,419
20,961,050
29,233,921
47.732131
26,918,535
60,463,643
1,091,836
3,120,728
3,540,748
3.814.233
352,687
1,091,836
3,120,728
3,540,748
4,166,920
20,961,050
30,325,757
50,852,859
30,459,283
64,630,563
(18,250,959) (14,150,873) 1,603,077 (29,801,176) (27,702,407)
(785,455 (1,402,410 (979,425 (594,661
(18,250,959 (14,936,328 200,659 (30,780,601 (28,297,068
2,196,141
2.579,245
3.679,079
4,999.051
6.014,305
24,450,337
24,443,112
35,168,329
42,583,031
42,114,893
5,240,037
6,773,566
7.613,075
8,896,716
8,492,213
4,261,767
4.831,338
5.437,238
5,446.361
5,327,203
895.810
1,185,087
1.044,470
1,259,985
1,748,082
191,062
251,618
276,917
307,032
317,011
675,996
1,141.177
1,049,701
872,753
641,705
1.7313.505
4.336,050
6,319,502
11,654,951
'10,230.489
1.608,151
2,453,642
2,740,233
3,291,055
3,803,647
3,717,470
1,967,292
57,346
1,489,612
2,397,474
1.943,093
2,052,246
1,220,627
(41,459,643
(1,137,203
(074,645
42.749,08
12.650,136
66,101,726
80,690,536
79,967,521
5"
1,817
4,310
(47,721)
41,459,643
1,137,203
874,645
41,459,643
1,137,756
076,462
(43.411
42,749,416
54,109,779
67,239,482
81,566,998
79,924,110
24,498,459
(1,500,737)
67,704,803
50.009,360
52.265.1 `14
-
40,674,188
(264,662
(102,963
(638,072
$ 24,498,459
$ 39,173,451
$ 67,440,141
$ 50,786,397
$ 51,627,042
136
TABLE 2
2009
2010
2011
2012
2013
7,636,146
$ 34,287.068 $
11,283,358 $
6.183,712
51 4,511,023
19,736,941
21,274,519
21.070,458
20,815,454
21,047.691
14.808,050
15,923,380
4,735,964
5,093,402
4,986,104
7,317,869
5.173,326
18,715,283
6,378.352
2,274.541
11,100,833
12,328,726
10,757,279
13,288,521
11.803,133
-
31,324,064
-
15,631,438
15,330,603
14,353,359
3.021.496
447,048
76,431,897
104,315,622
112,239,765
54,780,937
45,069,540
4,440,546
4,169,768
4,202.274
4,086,282
4,208,855
4,440,546
4,169,760
4,202,274
4,085,282
4,208,855
80,872,443
108,485,390
116,442,039
58,866,219
49,278,395
25,053
21,439
47,696
06.889
38.812
1,373,952
1,100.491
1,044,399
1,020,822
927,604
138,391
69.391
74,471
60,470
112,695
276,178
250,557
210.151
247,397
245.392
1,308,702
1,124,647
1,086,771
1,080,744
1,209,438
10,725,260
15,363,650
13,152.942
11,289,673
28.088,940
10,647,270
5.974,311
3,157,828
9,990,793
4,115,238
24,493,826
23,904,486
18,774,258
23,784,768
34,718,119
3,368,135
3,584,996
3,756,615
3,871,898
3,736,879
3,368,135
3,584,996
3,756,615
3,871,898
3,736,879
27,861,961
27.489,482
22,530,873
27,656,666
38,454,998
(51,938,071) (80,411,136) (93.465.507) (30,996,169) (10,351,421)
(1,072,411 (564,772 (445,659 (213,384 (471,976
(53,010,482 (80,995,908 (93,911,166 (31,209,553 (10,823,397
6.653,583
6,276,470
5,942,353
21,370,476
7,043,604
36,702,197
35,390,317
32,569,795
7,279,513
6,927,388
7,323,835
7,713,741
5,980,684
4,480,467
4,265,438
4,737,968
5,446.883
7,833.545
1,533,249
1,585,427
1,607,829
1,687,440
1.669,476
285.304
302.223
285,270
293,592
292,966
455.089
461,957
437,235
428,963
518,778
7,387.244
5,362,684
4,693,974
1,925.255
1,605.718
3.940.801
3.714.437
3.515,395
3,173.826
3,157,330
21.542
2,330
28,551
118,567
477,936
3,211,584
268,644
192,509
-
-
158,654,715
(2,189,984)
66,857,556
64,768,607
64,325,238
200,963,535
26,133,177
3.074
1,252
2,125
1,075
2,225
100,799
3,074
1,252
2,125
1,075
103,024
68,860,630
64,769,659
64,327,363
200.964.610
26,236,201
16,919,485 (15.642,529) (29.140.269) 169,967,366 15,781.756
(1,069,337 (5B3,520 (443,534 (212,309 (368,952
15,650,148 $ (16,226,049 $ (29,583,803 $ 169,755,057 $ 15,412,804
137
CITY OF LA QUINTA
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2004 2005
Expenses:
General government
$ 4,319,778
$ 3,595,906
Public safety
10,256,463
8,512.875
Community services
1,446,999
1,157,141
Planning and development
7,526,977
5,752,239
Public works
6,003,013
9,101,582
Contribution to other agencies
-
Interest on long-term debt
9,658,779
15,265,051
Total governmental activities expenses
39,212,009
43.384.794
Program revenues:
Charges for services:
General government
337,376
Public safety
4,004,621
Community services
252,677
Planning and development
662,737
Public works
1,813,993
Operating grants and contributions
1,799,503
Capital grants and contributions
12,090,143
Total governmental activities
program revenues
20,961,050
Net program revenues (expenses)
(18,250,959)
General revenues and other changes in net position:
Taxes:
Property taxes
2,198,141
Tax increment
24,450,337
Sales tax
5,240,037
Transient occupancy taxes
4,261,767
Franchise tax
895,810
Business license taxes
191,062
Othertax
675,996
Motor vehicle in lieu, unrestricted
1,608,151
Investment income
1,738,505
Gain (loss) on sale of capital assets
Miscellaneous
1,489,612
Extraordinary gain/loss on dissolution of RDA
-
Transfers
Total governmental activities
42,749,418
Changes in net position -
governmental activities
$ 24,498,459
Source: City of La Quinta
R906
L007 U-08
$ 4,229,871
$ 6,284,342
9,065,244
12,724,100
1,426,033
4,299,453
5,906,915
7,736,520
10,006,335
10,511,874
15,494,656
15,163,422
46,129,054 56,719,711
445,663
717,849
60,530
4,438,115
4,168,206
2,659,515
252,501
428,947
387,065
754,938
1,873,676
169,643
2,815,703
3,021,379
2,244,156
1,935,578
3,603,173
3,796,495
18,591,423
33,918,901
17,601,131
29,233,921
47,732,131
26,918,535
(14,150,873)
1,603,077
(29,801,176)
2,579,245
3,679,079
4,999,051
24,443,112
35,168,329
42,583,031
6,773,566
7,613,075
8,896,716
4,831,338
5,437,238
5,448,361
1,185,087
1,044,470
1,259,985
251,618
276.917
307,032
1,141,177
1,049,701
872,753
2,453,642
2,740,233
3,291,055
4,336,050
6,319,502
11,854,951
3,717,470
1,967,292
2,397,474
1,943,093
2,052,246
(41,459,643)
(1,137,203
(874,645)
12,650,136
66,101,726
80,690,536
$ 6,953,073
13,472,036
5,797,116
35.323,858
11,097,526
88,166,050
8,328
2,050,492
374,092
134,211
1,900,437
5,905,664
50,090,419
60,463,643
(27,702,407)
6,014,305
42,114,893
8,492,213
5,327,203
1,748,082
317.011
641,705
3,803,647
10,230,489
57,346
1,220,627
79,967,521
$ (1,500,737 $ 67,704,803 $ 50,889,360 $ 52,265,114
138
Table 3
2009
2010
2011
2012
2013
7,836,146
$ 34,287,068
$ 11,283,358
$ 6,183,712
$ 4,511,023
19,736,941
21,274,519
21,070,458
20,815,454
21,047,691
14,808,850
15,923,380
4,735,964
5,093,402
4,986,104
7,317,689
5,173,326
18,715,283
6,378,352
2,274,541
11,100,833
12,326,726
10,757,279
13,288,521
11,803,133
-
-
31,324,064
15,631,438
15,330,603
14,353,359
3,021,496
447,048
76,431,897
104,315,622
112.239,765
54,780,937
45,069.540
25,053
21,439
47,696
86,869
38,812
1,373,952
1,100,491
1,044,399
1,020,822
927,604
275,178
250,557
210,151
247,397
245,392
138,391
69,391
74,471
68,470
112,695
1,308,702
1,124,647
1,086,771
1,080,744
1,209,438
10,725,280
15,363,650
13,152,942
11,289,673
28,068,940
10,647,270
5,974,311
3,157,828
9,990,793
4,115,238
24,493,826
23,904,486
18,774,258
23,784,768
34,718,119
(51,938,071)
(80,411,136)
(93,465,507)
(30,996,169)
(10,351,421)
6,653,583
6,278,470
5,942,353
21,370,476
7,043,604
36,702,197
35,390,317
32,569,795
-
7,279,513
6,927,388
7,323,835
7,713,741
5,980,684
4,480,467
4,265,438
4,737,968
5,446,883
7,833,545
1,533,249
1,585,427
1,607,829
1,687,440
1,669,476
285,304
302,223
285,270
293,592
292,966
455,089
461,957
437,235
428,963
518,778
3,940,801
3,714,437
3,515,395
3,173,826
3,157,330
7,387,244
5,362,684
4,693,974
1,925,255
1,605,718
21,542
2,330
-
-
28,551
118,567
477,936
3,211,584
268,644
192,509
-
158,654,715
(2,189,984)
68,857,556
64,768,607
64,325,238
200,963,535
26,133.177
$ 16,919,485
$ (15,642,529
$ (29,140,269)
$ 169,967,366
$ 15,781,756
139
THIS PAGE INTENTIONALLY LEFT BLANK
140
CITY OF LA QUINTA TABLE4
Changes In Net Position - Business -type Activities
1AMI Nine FM.W Y.�
(accrual basis of accounting)
Fiscal Year
2DOS
2005
200T
2008
2009
2010
2011
2012
2013
Expenses:
Golf Course 1.077,291 2
4,523,146
4.520.173
4,761,581
4,440,546
4,169,768
4,202.274
4.085,282
4,208,855
Total business -type activities expenses 1,877.291
4.523.T4-6
—7—.5-20.17.3
--4.-761.581
---4,-440.546
__47__
169.768
_7'__
.202,274
_T085.282
4,208,855
Program revenues:
Charges for services:
Golf Course 1,091,B36 2
3,120,728
3,540,748
3,814,233
3.368.135
3.584.996
3,756.615
3,871,898
3,736,879
Capital grants and contributions
352.687
Total busIness-type actIvities
program revenues 1.091,836
3,120.728
3.540,748
4,166.920
3,388,135
3,594,996
3,758,615
3.871,898
3.736.879
Net revenues (expenses) (785.465)
(1.402.418)
(979,425)
(594.661)
(1.072.411)
(584,772)
(445,659)
(2-13,384)
(471,976)
General revenues and other changes in Not Position:
ln�astmanl Income
553
1,817
4,310
3,074
1,252
2.125
1,075
2,225
Investment expense
-
-
-
Gain (lose) on sale of capital assets
-
(47,721)
Insurance Recoveries
100,799
Transfers -
164,190
874,645
Capital contributions 41,459,643
973.013
979,425
-
Total business -type activities 41.459.643
1,137,756
1.855.887
(43.411)
3.074
1,252
2,125
1.075
103.024
B76I462
6.38.072)
1.069,337)
5B3,520)
443,534)
212.309)
(368,952)
__±O�
Changes In Not Position . businms-type aclivilles
__�2154,662)
The Ci1j, qfLa Quinta implemented the business �vpe activities in FY
200412005
The transfer was for land & golf course Improvements transferred
to the Enterprise Fund
2 This was the first full year of operations for the Golf Course
Source: City of La Quints
141
General fund:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Advances to other funds
Deposits
Due from Other Governments
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 proje,
Public safety
Community services
Public works
Capital Projects
Debt service
Assigned:
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2004 2005 2006 2007 2008
$ 292,816 $ 507,931 $ 503,642 $ 11,774 $ 10,601
28,671,083 31,904,659 22,700,961 27,597,329 45,264,966
246,858 5,903 4,825
11,915,000 15,067,577 16,905,386 18,722,524 19,651,824
589,875 10,877,058 482,718 2,100,000
1,000,000 750,000 500,000 250,000
11,981 - - -
467,072 4,967,072 2,327,430 1,911,131
1,069,667 1,319,787 2,257,200 2,835,297
13,579,479 13,308,205 18,239,315 32,741,545 20,423,375
$ 54,705,236 $ 63,926L2E $ 76,269,124 $ 84,640,520 $ 92,452,019
7,987
$ 7,977
$ 5,353
2,123,425
2,117,873
2,112,597
2,081,645
2,076,063
5,336,158
7,061,027
5,365,097
4,823,543
4,402,213
-
1,110
-
-
-
7,518,862
16,144,465
26,172,191
15,297,481
21,906,749
8,413
154,115
143,846
153,818
198,843
1,359,723
2,889,245
9,696,885
12,214,375
11,406,628
409,534
256,881
462,171
104,878
309,566
124,658,452
99,186,105
92,112,917
66,225,066
69,626,275
4,093,123
4,605,101
10,288,494
24,309,220
5,094,635
Continuing appropriations
Unassigned: (20,244,236) (18,B01,305) (7,133,230) (7,854,868) (19,653,17
Total all other governmental funds $ 125,263,454 $113,614,617 $ 139,228.955 $ 117,363,135 $ 95,373,146
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
The increase was primarily the result of the issuance of the 2011 Financing Authority bonds.
Source: City of La Quinta
142
TABLE 5
2009 2010 2011 2012 2013
12,424
$
9,030
$
23,260
$ 27,481
$
11,786
-
-
8,320,000
8,320,000
8,320,000
46,137,692
57,897,671
15,373,104
15,417,929
15,509,691
9,830
9,830
9,967
118,516
4,830
41,378,966
-
-
169,631
173,426
-
18,201,948
17,774,648
18,018,595
17,516,295
16,034,995
-
1,258,059
1,258,059
1,523,401
1,523,401
2,144,085
-
-
-
2,848,737
3,485,747
1,555,176
1,768,494
1,657,694
1,013,533
22,335,655
13,525,704
48,140,444
47,121,339
5,926,651
$
92,327,381
$
92,030,118
$
93,081,554�
$
19,197
$
7,740
$
10,563
$
-
2,067,028
2,088,709
2,081,614
2,092,086
2,086,499
4,321,119
4,293,166
4,569,188
-
-
4,540
6,400
6,000
-
-
25,807,752
31,032,124
34,018,930
10,767,199
3,730,533
245,468
48,852
96,364
245,187
258,968
11,387,631
11,675,417
10,248,314
11,162,057
11,626,441
7,539,181
448,731
396,355
145,823
262,754
50,556,856
53,123,856
58,111,106 3
4,089,156
1,392,581
5,490,098
3,890
4,001,426
2,534
2,234
2,000
-
-
-
-
(19,339,823)
(33.626,907)
(13,250,398)
(13,248,593)
(13,179,196)
$
69,101,978
$
100,289,462
$ 15,255,449
$
6,180,814
143
CITY OF LA QUINTA
Changes in Fund
Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual
basis of accounting)
Fiscal Year
2004
2005
2006
2007
2008
Revenues:
Taxes
$ 58,301,082
$ 68,175,347
$ 89,704,947
$ 100,103,324 $
105,870,933
Assessments
816,045
825,292
818,526
877,191
909,229
Licenses and permits
3,096,145
3,226,167
5,145,430
2,788,882
2,107,035
Intergovernmental
11,858,627
10,242,876
18,585,468
14,803,971
15,382,135
Charges for services
2,619,578
3,402,602
3,367,989
1,821,794
1,334,060
Use of money and property
4,854,728
9,798,356
12,671,662
14,804,348
12,874,926
Contributions
-
-
-
37,643,190
Developer participation
5,718,073
6,091,156
12,473,440
5,310,440
6,537,991
Miscellaneous
1,359,539
528.903
637,054
412,353
629,471
Total revenues
88,623,817
102,290,699
143,404,516
140,922,303
183,288,970
Expenditures
Current:
General government
4,099,376
3,970,921
4,644,954
6,150,699
7,367,144
Public safety
9,672,708
12,364,583
13,029,187
15,685,493
17,181,775
Planning and development
7,480,421
5,719,373
5,847,563
28,994,177
15,374,160
Community services
1,025,397
1,104,509
1,248,308
4,027,302
5,336,757
Public works
4,536,589
6,206,769
6,987,014
6,755,507
6,563,494
Capital projects
43,331,919
40,012,387
25,445,550
36,420,417
82,883,317
Debt service:
Principal retirement
3,610,538
3,793,660
4,777,748
5,647,940
5,949,311
Interest and fiscal charges
13,961,721
14,355,577
15,554,612
15,059,977
15,424,708
Payment to bond escrow
1,591,107
-
-
-
-
Payments under pass -through obligations
21,448,147
25,756,321
35,958,291
36,498,575
42,989,023
Total expenditures
110,757,923
113,284,100
113,493,
155,240,087
199,069,689
Excess (deficiency) of
revenues over (under)
expenditures
(22,134,106)
(10,993,401
29,911,289
(14,317,784)
(1,5,780,719)
Other financing sources (uses):
Issuance of tax allocation bonds
26,4OOtOOO
Issuance of revenue bonds
90,000,000
Payment to bond escrow
(19,955,000)
-
-
-
Transfers in
154,613,662
49,248,081
35,828,335
60,954,576
88,604,682
Transfers out
(154,613,662)
(49,248,081)
(35,992,525)
(60,954,576)
(87,342,608)
Other debts issued
Capital leases
-
182,094
Proceeds from sale of capital assets
-
8,566,295
8,209,396
124,097
158,061
Total other financing
sources (uses)
96,445,000
8,566,295
8,045,206
124,097
1,602,229
Extraordinary gain/loss on dissolution
of redevelopment agency
Net change in fund balances
Debt service as a percentage of
noncapital expenditures(a)
$ 74,310,894 $ (2,427,106) $ 37,956,495 ��193�07
57.9% 62.0% 65.5% 61.0% 47.1%
(')The capitalizable expenditure was derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Funi
Source: CityofLaQuinta
144
TABLE 6
2009
2.010
2011
2012
2013
$ 99,816,072
$ 93,831,918
$ 88,498,457 $
53,632,023 $
23,506,679
927,816
966,639
956,048
950,292
954,058
871,167
472,409
547,071
482,831
566,510
18,679,355
19,473,076
19,005,643
15,875,582
15,464,942
673,779
484,043
501,418
635,111
625,813
7,043,646
5,338,679
4,670,732
1,914,518
1,582,762
240,591
395,823
327,751
303,773
18,377,253
2,243,785
273,739
945,805
903,144
1,226,825
720,185
608,342
319,763
276,327
491,267
131,216,396
121,844,668
115,772,688
74,973,601
62,796,109
7,230,436
30,220,882
10,885,519
4,881,922
4,587,888
18,946,866
20,116,936
19,826,372
19,669,517
20,168,038
7,261,835
6,028,492
8,460,420
4,314,646
27,514,768
4,698,985
4,204,626
4,147,758
4,086,686
4,411,536
6,324,055
6,862,887
4,808,060
6,192,733
5,067,370
32,363,859
14,514,910
21,287,775
13,335,989
8,622,783
6,319,580
6,616,412
7,011,261
7,066,726
556,871
15,348,598
15,357,968
15,037,919
6,701,079
437,678
42,426,670
38,710,894
35,607,089
16,755,441
-
140,920,884
142,634,007
127,072,173
83,004,739
71,366,932
- _ (9.704,488) (20,789,339) _ (11,299,485) (8.031,138) (8,570�,823,)
6,000,000
28,850,000
40,502,929
30,386,372 61,657,034
12,554,752
29,841,053
(40,527,930)
(28,893,365) (61,652,479)
(12,580,120)
(29,841,053)
2,332,752
-
-
-
71,045
8,683,850
875,275
121,652
2,307,751
1,493,007 43,538,405
849,907
192,697
- ___(79,058,255)
$ (19,296,332) $ 32,238,920 $ (86,239,486) $ (8,37L1 26J
59.0% 47.6% 53.0% 43.8% 1.6%
d Balances of Governmental Funds.
145
THIS PAGE INTENTIONALLY LEFT BLANK
146
CITY OF LA QUINTA TABLE 7
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
Entire City (including Redevelopment Agency
Fiscal Year
Ended
June 30
Secured
Unsecured
Less:
Exemptions
Taxable
Assessed
Value
Direct
Rate
2004 $
5,412,382,710
$ 40,940,877
$ (95,420,075)
$ 5,357,903,512
0.8300
2005
6,289,493,552
44,014,548
(113,037,003)
6,220,471,097
0.8091
2006
7,856,383,375
72,554,357
(115,071,146)
7,813,866,586
0.9992
2007
9,986,151,525
88,740,840
(99,245,721)
9,975,646,644
0.9992
2008
11,854,669,637
101,433,002
(89,688,505)
11,866,414,134
0.9992
2009
12,410,626,893
113,185,065
(107,777,195)
12,416,034,763
1.0000
2010
11,742,665,902
121,272,880
(110,752,890)
11,753,185,892
1.0000
2011
10,913,083,169
118,972,704
(161,265,140)
10,870,790,733
1.0000
2012
10,400,897,792
107,421,771
(176,887,605)
10,331,431,958
1.0000
2013
10,345,371,473
108,971,608
(179,344,969)
10,274,998,112
1.0000
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: HDL Coren
147
CITY OF LA QUINTA
Diml and Overtopping Property Tax Flates
(Rate per $100 of amossed elue)
aty Redevelopment
Non-Projec! Area Projed Ar I
2006, 20071 2WB' 20091 2010 1 2011 ' 20121 2013 20063 2DO7 3 20og 4 2009 4 _ 2D 10 4 2011 ' 2012
Direct Raise:
aty of L. Quints
0.0700
00760
0.07eO
00506
0.0508
00734
00760
0 07eO
iiiiiiiiii
o aGDO
0.0000
00152
0.0036
D 0049
0.0524
Redevelopment agency Project Arm 1
D.D000
00000
00000
00000
0.0000
0 DODO
O.ODOO
0 DOGO
05830
0.5880
05150
05245
0,5432
05310
00000
Redevelopment agency Project A- 2
0,0000
00000
0.0m
00000
0.0000
O.DDDO
0 ODDO
0.0000
0 ODDO
0 ODDO
O.D000
00000
0.0D00
00000
0.0000
County of ftiverelde
M 1980
0.1geo
01960
0.2586
0.2506
02318
01957
01958
0.2639
02019
02619
0.2325
0.2501
0.2471
02683
County Free Jlbrary
0.0250
00250
00250
00284
0.0204
00280
0.0252
00253
00276
0.0276
0.0276
00277
0.0276
00282
G 0294
County Siructure Fire Proledlon
0.0540
0.0540
O�0540
00610
0� 0610
ne02
0,0544
0.0544
00595
00595
0.0595
00595
0.0595
00607
0.D833
Coachella Valley (CV) Unifled School
0.0000
0 ODOO
0.0000
0 00W
0.0000
0 DOOO
04322
04322
00170
0.0150
O.DO20
00149
0.0107
00182
00000
U.- Send. tha(M Sched
0,4320
OA320
04320
03765
03765
0.3716
00000
0.0DG0
0 01410
0-0140
0.0140
00095
00568
0 G037
03005
Deseal Community College
OD700
0.0700
0.07DO
0.0782
0,0782
00772
0.0698
00698
0.0030
C0030
00720
0.0177
00152
0.0166
00812
Rlverslde County Offics of Education
0.0300
00380
0.03110
00426
0.0426
00420
00360
00380
00030
0.0030
00180
0,0093
00027
00038
00442
Riverside Counly Regional Park & Open Space
0.0040
00040
0,0040
0.00110
0.0D00
00000
0.0040
00039
00000
0.0000
00030
&OD00
0.0000
0. DODO
0 0DG0
CV Public Cometery
00032
0.0032
0.0032
00035
0.0035
0.0035
0 DD32
0.0031
00000
0 ODDO
O.DDOO
O.GODB
O.DO02
00003
0.0037
CV Mosquito
00127
0.0127
0.0127
0.0142
00142
11 a141
00127
00127
00120
00120
00120
00112
0.0111
0.0112
0 01,18
Consent R.-Ion District
0.0192
00192
0,0192
00215
00215
0 0213
0.0192
00192
00010
00020
00010
00044
0.0014
00019
00223
CV Water District
0.0250
0.0250
0.0250
0.0284
0,0284
00281
0.0254
00254
0.0130
0 0`130
0 D010
0,0127
00120
0.0124
00295
CV Resource Conservation
O.DD03
0 D003
O.DD03
00004
0.0004
0 OOD4
00003
00003
00000
0.0000
0 of 30
00001
0, DD00
0 OODO
00004
CVWD District I Debt SmIce
0,01 to
00118
00118
00000
0 DOOO
0.0131
0 01`18
0.0118
00000
0 ODDO
0.0000
D.D000
000ati
00000
0 OODO
CVWD Storm Water Unit
ft0320
00320
00320
00360
D. O."o
D D-1155
D.0,VI
0.0321
00010
00010
0.0000
0,0000
000M
0.0000
00000
T.tel Dlrect Rate
0.9992
019M
09992
1.00DD
1, DODO
1 ow
1 0"
1 0000
1.00DO
1 0000
1.0000
1.0DD0
1 0000
_L0000
10000
Tax Rate Arm
Overlapping Ralas
City of La Quints
County of Riverrilde
Riverside County Offim of Eductillon
PJv..Ida County Pension Otallitallon
Desert Sands Unified
Coachella Valley Unified School 01strict
Coachalle Valley Water District
Coachella Valley Recreation a Park 01.1det
Desert Co.. College District
Total Overlapping Rate
020-005 020-ODS 020-005 02(1-005 020�005 020-005 020-MB 02G-W5 020-015 020-015 020-089 020-089 020-089 020-089 020-089
0.0767 00761 0.0799 00799 0.0811 0.1004 0.0757
OL0442 0.0332 O.D462 0.004 0 D860 0.0860 0,0862
0,0199 00199 00199 00199 O�0200 0.0200 0,0079
01409 O� 1293 0 1461 01462 01671 0.2063 01698
T.tal Direct and 0-depplag Rat. 1 1401 1 1285 1 1453 1-1402 11671 1 2083 1 1697
NOTE:
In 1978, Califor-nia wim passed Preposition 13 which sets the property lax rate at a 100% fixed amount for direct
taxes This I % is shamd by all taxing egerucics for which the subject property resides within
Source: County of Ftiverelde Audftm Contrallers Office
Directness from Tax Rate Arm (TRA) 020-050 provided by
Hill Coren & Cone and overlapping debt raise from California
Municipal Siallstles
2 Direct rate taken from all non -RDA TRA's provided by the
County of Rverside and do not Include ERAF daductona and
ovarlepping miss provided by California Municipal Statistics
Direct rate taken from an analysis by the City of La Quints
Finance Department staff of all TRA's In the Project arm and
do not Include State ERAF clecluctons and overtopping raise
provIded by California Municipal Statistics
Direct rate taken from an analysis of the TRA In the Pmject
am and do not Include State ERAF daducilans and
overlappIng raise provided by Callfomla Municipal Stallalles
5 Overlapping raise am based upon a single tax rate arm only
Note: The Information was first presented in I'litail Yur 200e
00767 0.0761 00756 00799 0 0811 01004 00757
0.0199 0 D208 00484 D.D464 00680 0.11660 O�0882
00208 0.0199 0.0199 00199 00200 0 02DO 00079
0,1175 01169 0,1440 041462 01671 02083 01898
1 1176 1 1169 1.1440 1 1463 1 1671 1 2063 1,1098
148
0.0199 00199 0.0199 0.0199 0.02DO 0.0200
01409 0.1293 0.1440 0.1462 0.1671 0.2063
Rodevelopmml
ProJW Arm 2
20063 2007 ' 20084 20D9 4 2010 2011 2012
0. DODO
O.ODDO
00000
0.0000
00000
O.DDIO
0.0499
C DDOO
O.DDOO
00000
D.G000
O.ODDO
O.DOOO
0.2800
02920
0.2910
0.3193
0.3174
0.3059
O.ODOO
0.2617
02617
0.2elT
02516
02637
0.2511
02553
&0280
0.0280
00280
0.0280
00280
0.0280
00280
0.0803
0 D803
0.0603
0.0603
O.DS03
00816
0.0602
0.0000
00000
0,0020
0.0000
0.0000
00000
O.00DD
0.2000
0.1900
0.1970
01800
0.1859
01930
03710
0 D420
0.0410
0,0410
0.0300
00386
0.0401
00772
0.0230
00220
0.0220
0.0210
0.0210
00218
0.0420
00000
00000
010000
D.0000
0 DODO
O.ODDO
0.0000
00000
O.DDDO
0 OODO
0.0000
00001
0.0035
00150
0.0140
00140
0.0141
0.0141
0.0141
G0140
0.0060
D.Doso
0.0080
O.DO53
0.0053
00059
010212
0,0770
0.0760
00760
0.0757
0.0757
0.0740
0,0281
O.D000
0 OODO
O.DOOO
0,0000
O.ODDO
&GODO
0.0004
0 DDOO
O.00DO
00000
0.0000
00000
0.0005
0.0131
(LODIO
DLDOJO
0.00to
0.0m
00000
0 DOU
0,0355
1.0000
I.M
i.00DO
l.DDOO
1.00DO
I.00DO
1.00DO
020-144 020-144 020-144 020-144 020-144 020-144 020-144
00767 0.07el 00756 00799 0.0011 0,1004 0.0757
0.0442 0,0332 0.004 0.0464 0.0660 00860 0.0862
00079
01698
1 1409 1.1293 1A440 1.14e2 1 1671 1 2083 1.1698
TABLE 8
149
CITY OF LA QUINTA
TABLE 9
Principal
Property Taxpayers
Current Year and Ten Years Ago
(in dollars)
2013
2004
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
-- — — — — jAxka y e —r
Value
Rank Value
Value
Rank
Value
KSL Desert Resort, Inc $
151,877,857
1 1.40% $
230,492,822
1
4.85%
TD Desert Development
100,155,108
2 0.92%
43,414,117
2
0.51%
MSR Resort Golf Course
61,124,895
3 0.56%
East of Madison LLC
45,365,091
4 0.42%
-
inland American La Quinta Pavilion
43,399,514
5 0.40%
-
Coral Option I LLC
42,836,010
6 0.39%
35,192,155
4
0.51%
IOTA Griffin LLC
35,412,485
7 0.00%
-
WRM La Quinta
30,170,000
8 0.28%
Walmart Stores
28,668,169
9 0.26%
Village Resort
24,486,681
10 0.23%
ND La Quinta Partners
.
39,494,958
3
0.44%
Toll California V
34,068,168
5
0.72%
Quarry at La Quinta Inc
28,630,587
6
0.33%
Aventine Development
20,675,000
7
0.33%
Prestwick Development
16,915,476
8
0.32%
M and H Realty Partners 11
-
15,053,730
9
0.31%
Mery Griffin
13,545,073
10
0.31%
$
563,495,810
4.86% $
477,482,086
8.63%
Source: HdL Coren & Cone
150
CITY OF LA QUINTA TABLE 10
Property Tax Levies and Collections
Last Eight 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 Leyy
2006
$ 61,420,601
$ 73,097,362
119.01%
$ 2,092,062
$ 75,189,424
122.42%
2007
74,170,170
83,797,365
112.98%
1,802,076
85,599,441
115.41%
2008
83,018,429
87,804,912
105.77%
3,216,547
91,021,459
109.64%
2009
83,934,188
86,721,572
103.32%
1,471,940
88,193,512
105.07%
2010
78,621,410
80.651,874
102.58%
434,643
81,086,517
103.14%
2011
72,735,079
74,047,640
101.80%
259,209
74,306,849
102.16%
2012
73,462,430
38,125,919
51.90%
-
38,125,919
51.90%
2013
5,753,420
6,925,637
120.37%
6,925,637
120.37%
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, ABlx.26 dissolved the Redevelopment Agencies throughout the State of California
which resulted in the reduction of amounts collected during Fiscal Year 2011-2012 and Fiscal Year 2012-2013.
Note: The information was first presented in Fiscal Year 2006.
Source: County of Riverside Auditor Controller's Office
151
CITY OF LA QUINTA
Ratios of Outstanding Debt by
Type
Last Ten Fiscal Years
(in dollars)
Fiscal Year Ended
2004
2005
2006
2007
2008
Governmental Activities
Reimbursement Agreement $
428,311
$ 378,311
$ 328,311 $
278,311
$ 228,311
Capital lease
-
-
USDA Loan
Provident Savings Loan
-
-
-
-
Due to Coachella Valley Unified School District
6,653,377
5,927,263
5,186,627
4,431,178
3,675,731
Due to County of Riverside
2,050,000
1,950,000
1,850,000
1,750,000
1,600,000
Developer Agreement
1,010,688
898,141
776,030
643,539
511,048
Tax Allocation Bonds Project Area 1
142,507,628
140,263,659
141,785,000
139,145,000
136,350,000
Tax Allocation Bonds Project Area 2
6.325,000
6,230,000
6,130.000
6,025,000
5,915,000
2004 Local Agency Revenue Bonds
87,924,343
87,947,058
89,265,000
87,745,000
86,175,000
2011 Local Agency Revenue Bonds
City Hall Lease Revenue Bonds
6,890,000
6,575,000
6,245.000
5,900,000
5,540,000
Unamortized Discount and Issuance Costs
(877,230)
(877,230)
(841,087)
Total Governmental
253,789.347
250.169,432
250,698,738
245,D40.798
239.154,003
Business -type Activities
Zapital Leases
-
801,417
1,D90,602
12 3
681,040
Total Business -type activities
-
801,417
1,090,602
2,5:,1848
681,048
Total Primary Government $
253,789,347
$ 250,970,849
$ 261.779,340 $
245,866,646
$ 239,835,051
Population - State Department of Finance January 1
32,522
36,145
38,340
41,092
42,958
Number of Households
15,942
17,549
18,762
20,176
21,058
Median Household Income
(2)
$ (2)
$ 65,906 $
67,754
$ 74,683
Percentage of Personal Income
(2)
-200.00%
20.36%
17.99%
15.25%
Debt Per Capita $
7,804
$ 6,943
$ 6,567 $
5,983
$ 5,583
'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
152
2009 2010 2011 2012 2013
178,311 $
128,311 $
- $ . $
149,169
114,583
78,253 40.090
71,045
751,754
741,171
729,480 -
702,105
1,556,283
1,530,958
1,503,433
1,441,096
2,874,653
2,072,965
1,255,243
1,400,000
1,200,000
1,000,000
343,814
174,584
-
133,390,000
130,255,000
126,925,000
5,800,000
5,680,000
11,555,000
84,560,000
82,890,000
81,150,000
-
-
28,850,000 -
-
5,160,000
4,760,000
4,340,000 3.895,000
3,425,000
(804,944)
(768,801)
(1,115,799)
235,359,040
228,778,771
256,270,610 3,935,090
5.639,246
285,217 54,543 286,097 169,084 43,736
285,217 54,543 286,097 169,084 43,736
235.644,257 $ 228,833,314 $ 256,556,707 $ 4,104,174 $ 5,682,982
43,778 44,421 37,836
21,355 23,489 23,528
$ 76,227 $ 90,124 $ 104,410 $
14.48% 10.81% 10.44%
$ 5,383 $ 5,151 $ 6,781 $
38,075 38.401
23,528 23,612
104,045 $ 77,790
0.17% 0.31%
108 $ 148
TABLE 11
153
CITY OF LA QUINTA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Dollars)
TABLE 12
Outstandina General Bonded Debt
Fiscal Year City Hall LocalAgency Tax Percent of Per
Ended Lease Revenue Allocation Assessed Median
June 30 Obliqaton Bonds' Bonds Total Value 1 louselhold Income
2004 $ 6,890,000 $ 87,924,343 $
148,832,628 $
243,646,971
4.55%
2
2005 6,575,000 87,947,058
146,493,659
241,015,717
3.87%
2
2006 6,245,000 89,265,000
147,915,000
243,425,000
3.12%
3,694
2007 5,900,000 87,745,000
145,170,000
238,815,000
2.39%
3,525
2008 5,540,000 86,175,000
142,265,000
233,980,000
1.97%
3,133
2009 5,160,000 84,560,000
139,190,000
228,910,000
1.84%
3,003
2010 4,760,000 82,890,000
135,935,000
223,585,000
1.90%
2,481
2011 4,340,000 110,000,000
138,480,000
252,820,000
2.33%
2,421
2012 3,895,000 -
3,895,000
0.04%
37
2013 3,425,000
3,425,000
0.03%
44
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
154
CITY OF LA QUINTA
TABLE 13
Direct and Overlapping Debt
June 30, 2013
City Assessed Valuation
$ 10,274,998,112
Total Assessed Valuation
$ 10,274,998,112
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage
Outstanding
Overlapping
Applicable
Debt 6/30/13
Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District 16.779%
$ 318,557,917
$ 53,450,833
Coachella Valley Unified School District 52.969%
183,662,102
97,283,979
Desert Sands Unified School District (DSUSD) 20.018%
299,439,872
59,941,874
DSUSD Community Facilities District No. 1 88.912%
1,455,000
1,293,670
City of La Quinta 1915 Act Bonds 100.000%
565,000
565,000
Coachella Valley Water District Assessment District No. 68 86.247%
2,260
,000
2,011,071
Total overlapping debt repaid with property taxes
805,939,891
214,546,427
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations 5.122%
$ 640,243,149
$ 32,793,254
Riverside County Pension Obligations 5.122%
346,790,000
17,762,584
Riverside County Board of Education COP 5.122%
3,900,000
199,758
Coachella Valley Unified School District COP 52.969%
46,205,000
24,474,326
DSUSD COP 20.018%
51,790,000
10,367,322
Coachella Valley Recreation and Park District COP 26.240%
2,215,000
581,216
Total overlapping other debt
1,091.143,149
86,178,460
Total overlapping debt
1,897,083,040
300,724,887
City direct debt
5,682,982
Total direct and overlapping debt
$ 306,407,869
Notes:
For debt repaid with property taxes, the percentage of overlapping debt applicable is
estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic
boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments
that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should
be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each
overlapping government.
Source: California Municipal Statistics, Inc.- overlapping debt
Source: City of La Quinta - City Direct debt
155
CITY OF LA QUINTA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2004 2005 2006 2007 2008
Assessed valuation $ 5,357,903,512 $ 6,220,471,097 $ 7,813,866,586 $ 9,975,646,644 $11.866,414,134
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
803,685,527 933,070,665 1,172,079,988 1,496,346.997 1,779,962,120
$ 803,685,527 $ 933,070,665 $ 1,172,079,988 $ 1,496346,997 $ 1,779,962,120
0.0% 0.0% 0.0% 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 Quinta 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
156
TABLE 14
2009 2010 2011 2012 2013
$ 12,416,034,763 $ 11,753,185,892 $ 10,870,790,733 $ 10,331,431,958 $ 10,274,998,112
15% 15% 15% 15% .15%
1,862,405,214 1,762,977,884 1,630,618,610 1,549,714,794 1,541,249,717
$ 1,862,405,214 $ 1,762,977,884 $ 1,630,618,610 $ 1,549,714,794 $ 1,541,249.717
0.0% 0.0% 0.0% 0.0% 0.0%
157
CITY OF LA QUINTA
Pledged -Revenue Coverage
Last Ten Fiscal Years
(in Dollars)
TABLE 15
Local Nancy Revenue Bonds
(City Hall Project)
Fiscal Year
-_
Ended
Lease Less: Other
Net Lease
Debt Service
June 30
Revenue' Debt Payments
Revenue -
Principal
Interest -
Coverage
2003
$ 679,435 $ $
679,435
$ 285,000
$ 394,435
1.00
2004
680,830
680,830
300,000
380,830
1.00
2005
681,220
681,220
315,000
366,220
1.00
2006
680,575
680,575
330,000
350,575
1.00
2007
678,865
678,865
345,000
333,865
1.00
2008
675,880
675,880
360,000
315,880
1.00
2009
676,450
676,450
380,000
296,450
1.00
2010
675,280
675,280
400,000
275,280
1.00
2011
672,525
672,525
420,000
252,525
1.00
2012
673,521
673,521
445,000
228,521
1.00
2013
673,130
673,130
470,000
203,130
1.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements.
1 Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee Fund
158
CITY OF LA QUINTA
Demographic and Economic Statistics
Last Ton Calendar Years
TABLE 16
Calendar Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Year Year
Year
Year
Year
Year
Year
Year
Year
Year
Sources: M 2M
2M
2M
2W
mu
am
2013f7l
City Land (Sq Miles) (3) 351 361
35.10
35.10
3531
35.31
35.31
3531
3516
3616
Population (1) 32522 36145
38,340
41,092
42,958
43,778
44.421
37,836
38.076
38,401
Median Household Income (in dollars) (4) (4) (4)
$65.906
$67.754
$74,683
$76.227
$90,124
$104,410
$1154,046
$77,790
Number of Dmillng Units (3) 15,942 17,549
18.762
20,176
21,058
21,355
23,489
23,528
23,528
23,612
Pawns per Household (3) 2 B48 2878
2.855
2.846
2851
2-851
2.865
2.549
2555
257
Average Income par person per household (6) (6) (6)
$23.084
$23,807
$26,105
$26,737
$31,457
$40,981
$40,722
$41.200
Labor Force (2) 13700 14300
14,500
15,300
15,200
14,800
14,800
14,400
15,100
17400
Employment (2) 13200 13900
14.1 DO
14,900
14,600
13,700
13,500
13,300
14,100
16,300
Unemployment Rate (2) 3.65% 280%
276%
261%
395%
743%
753%
764%
662%
6.30%
Median age (4) (4) (4)
36
364
364
364
422
415
428
45.6
Sources: (1) State of California Department of Finance - January I of each year
(2) State of California Economic Development Department mbsile,
(3) City of La Quints Building & Safety and Commundly, Development Departments
(4) Desert Wheeler's Newlefler City Overview through 2009; HdLCoren
& Cone Companies
thereafter -
data not available
before 2006
(5) The population number was updated based upon the 2010 United States Census
(6) The information %vas not collected before 2006
(7) Five year average 2007-2011 Census
159
CITY OF LA QUINTA TABLE 17
Principal Employers
Current Year and Ten Years Ago
2012-2013
2003-2004
Percent of
Number of
Total
Number of
Employer
Activity
Rank
Employees
Employment
Employees Rank
La Quinta Resort & Club
Hotel & Golf Resort
1
1,246
7.64%
1,500
1
Desert Sands Unified School District
Government
2
1,176
7.21%
550
3
PGA West
Golf Resort
3
1,100
6.75%
1,100
2
Wal-Mart Super Center
Retailer
4
340
2.09%
250
4
Costco
Retailer
5
244
1.50%
-
Rancho La Quinta
Golf Resort
6
209
1.28%
200
5
Home Depot
Retailer
7
160
0.98%
180
6
Lowe's Home Improvement
Retailer
8
148
0.91%
150
7
Imperial Irrigation District
Utility Company
9
140
0.86%
110
9
Stater Brothers
Grocery Store
10
119
0.73%
126
8
Vons
Grocery Store
11
98
0.60%
103
10
Tradition Golf Club
Golf Resort
12
95
0.58%
97
12
Total employment listed
5,075
31.13%
4,366
Total City Employment - July 1
16,300
12,100
Source: City of La Quinta
160
C�Ty OF LA QUINTA
Ful -time City Employees
by Function
Last Ton Fiscal Years
Fiscal Year Ended June
30,
F.ncilw
20134
2005
2DO6
2007
2008
2009
2010
2011
2012
2013
Administration
8.00
800
9.00
10.00
12.00
12.00
13.00
14.00
12.00
11.00
CllyClerk
5.00
5.00
5.00
5.00
6.1)0
6.00
6.00
8.00
5.00
5.00
Finance
B.Do
8.00
9.00
0.00
9.()0
9.00
9.00
11.01),
8.00
Boo
Community Services
7.00
0.00
10.25
10.25
11.25
11.25
10.35
10.35
10.35
10.35
Building end Safety
19.00
21.00
22.DO
24.00
25.00
25.00
25.00
21.00
21.00
21.00
Planning and Dewlopmeni
9.00
9.00
12.00
12.00
12.00
12.00
10.00
9.00
8.00
9.00
Public Works
22.130
2350
26.25
26.25
28.25
29.25
27.25
26.25
24.25
23.25
Golf Course
050
0.50
0.50
0.50
0.50
OAO
OAO
OAO
0.40
Total ___.L8 00 ___.M.00 7.00 104.00 101.00 101.00 6.01 9.00 0
Source: City of La Quints
NOTE: The City of La Oulnia
contracts with the County of FtWerside
for Police Services end vylth the
California Department of Forestry
through a contract with the County of
TABLE 10
161
CITY OF LA QUINTA
Operating Indicators
by Function
Last Eight Fiscal Years
TABLE 19
2006
2007
2008
2009
2010
2011
2012
2013
Finance:
Number of Active Business Licenses
3.208
3.424
3,690
3,523
3,428
3,183
3,310
3,520
Number ofAnimal Licenses Processed
892
1,022
1.272
1,609
1.768
1.619
1,674
1,505
Number of Accounts Payable Checks Processed
4,696
4.722
4,840
4,819
4,393
4,530
3,766
3,576
Number of investment purchases
39
73
64
36
32
20
27
30
Par value of investments
$327,417,000
$392.729,000
$424,500,000
$229.969,000
$267.213.000 $189,810.285
$188,782,874
$164,614.769
Number of cleared checks
5,081
4.837
5.501
5.269
4.984
4,912
5,103
3,899
Number of outgoing bank wires
202
158
136
91
75
87
63
58
Public Works:
Encroachment permits issued
304
218
110
132
78
104
65
124
Request for services
618
419
1152
1931
1306
746
534
740
Building & Safety:
Permits:
Single family Detached
1,044
526
297
129
56
85
39
83
Single family Attached
227
38
0
6
12
0
11
0
Residential Pool
866
612
331
207
152
148
127
162
WalliFence
1.502
963
583
299
178
218
149
167
Other
OB
790
1,033
916
1,042
Tolal Permits
5.246
3.543
2.332
1A49
1.188
1,484
1242
1.454
Code Compliance:
Animal Control Incidents Handled
1.901
687
2,920
3,630
3,984
4,392
4,246
3,206
Vehicle abatements
909
296
351
346
214
263
139
99
Garage Sale Permits
1,190
1,444
1.519
1.535
1,663
1,805
1,430
1.404
Weed abatements
141
76
117
97
125
143
106
1,668
Nuisance abatements
1,611
2,032
2,142
3,130
2,340
2,252
2,433
1,668
Community Services:
Library activities:
Library Volume
42,050
44,981
66,124
81,124
89,060
92,484
109.000
63,955
Library books checked out
55,002
99,659
117,738
215.843
259,711
263,064
275,838
220.690
Library Cards Issued
5,550
5,325
3.675
3,684
3,547
3,822
4.477
2.966
Number of School Children Visiting Library
745
260
841
1,036
772
1,881
962
737
Library Volunteer Hours
1,891
1.583
1,951
2.342
2,723
4,280
2,720
2,226
Senior Center:
Number of visits
14,305
12,955
14,013
15,739
20,326
18.403
16,642
9,350
Senior Center Volunteer Hours
3.481
4.192
3,332
2,563
3,131
3,099
2,690
2,233
Recreation activities:
Participants:
Leisure Classes
1,373
1,192
990
1,140
1,437
1,512
2,016
1,475
Special events
4.668
7.809
8.109
11,053
8.795
8,933
36.305
5.970
Adult Sports
3.402
6,827
8,550
10.806
13,364
13,092
5,647
3,665
Golf course:
Golf rounds played
38.934
40,548
40.516
39,150
43,779
45.269
46,949
46,352
Average $ Green fee
71.12
76.97
81 �09
76.13
71.59
70.7
704
67.44
Planning and Development:
Number of residential units approved
1,063
534
338
100
255
208
285
228
Commercial square foolage approved
533,726
124,821
342.502
390,097
6,200
27,526
61.662
0
Source: City of La Quints
Note: Information not collected before 2006
162
CITY OF LA QUINTA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
TABLE 20
Fiscal Y02r Ended June �10.
2004 2005 2006
2007
2008 2009
2010
2011
2012
2013
Public works:
Streets (miles)
118.40 118.40 118.40
122
127 127
127
127
128
128
Bikepaths (miles)
22 22 22
22
22 22
22
22
22
22
Streetlights'
1 1 73
85
85 261
265
265
269
269
Traffic signals
2 2 44
45.26
45.25 49
50
50
51
52
Traffic signs 2
2,799
2,845
2,895 2,899
2909
2,919
2.934
2,984
Bridges
12
12
12 12
12
12
12
12
Parks and recreation:
Parks 12 12 12
Park Acreage 207 207 207
Undeveloped Park Acresg92 2 2 40
Senior Center 1 1 1
Museum 1 1 1
Library 1 1 1
Golf Course:
Municipal golf courses
Source: City of La Quinta
In Fiscal Year ending 2009 street lights at intersections were Included for the first Ume.
In Fiscal Year ending 2006 traffic signals , traffic signs, and undeveloped park acreage were
included for the first time.
12
13
13
13
13
13
13
207
209
209
218
218
218
218
40
40
40
40
40
40
40
163
Company Name Policy Numbe
Hartford FA0267254-11
Lexington 20412656
20412887
Lloyds WB-0009204
California
Joint Powers
Insurance Authority
California
Joint Powers
Insurance Authority
Alliant PECO01 1896301
CITY OF LA QUINTA
Schedule of Insurance In Force
June 30, 2012
Coveraue
Employee Dishonesty,
Forgery, Computer Fraud
All Risk Property Insurance
Including Auto Physical Damage,
Terrorism, Boller & Machinery
(Excluding Earthquake)
Earthquake/Flood
Real & Personal Property
Including Contingent Tax Interruption
Comprehensive General
Liability
Worker's Compensation
Pollution Liability
TABLE 21
Limits Term
Premium
$1,000,000 1213/12 - 12/3/13
$3,375
64,319,900 7101/12 - 7/01/13
$59,620
7/1/13 - 7/1/14
$65,215
20,000,000 2/07113 - 2/07/14 $108,193
$50 Million 6/30/13 - 6/30/14 ($60,876)
Single Limit per Occurrence
10,000,000 6/30/13 - 6/30/14 $166,767
10,000.000 7/01/11 - 7/01114 $26,227
164
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item 2
Meeting Date: March 12, 2014
TITLE:
Month End Cash Report for January 2014 and Pooled Money Investment Board
Report for December 2013 and January 2014
BACKGROUND:
The January 31, 2014 Month End Cash Report is hereby submitted for your review.
This cash report is not a complete Treasury Report and excludes petty cash,
deferred compensation and fiscal agent balances. Selected cash balances are
reported to provide current cash balances to the Board.
In addition, the Pooled Money Investment Board report for December 2013 and
January 2014 is included in the agenda packet.
RECOMMENDATION:
Information item only.
Patrick Griffin, Interim Finance Director
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POOLED MONEY INVESTMENT ACCOUNT
Summary of Investment Data
A Comparison of December 2013 with December 2012
(DOLLARS IN THOUSANDS)
December 201 December 2012 hange
Average
Daily Portfolio
64,176,882
58,927,396
-4,750,514
Accrued
Earnings ($)
12,148
16,322
-4,174
� Effective Yield (%) 0.264 0.326 -0.062
Average Life -Month End (in Days)
209
208
+1
Total Security Transactions
Amount
18,639,968
14,197,504
+4,442,464
Number
374
284
+90
Total Time Deposit Transactions
Amount
1,888,600
1,634,000
+354,500
Number
84
76
+9
Average Workday Investment Activity
977,646
786,676
+190,971
Prescribed Demand Account Balances
For Services ($)
1,794,902
1,463,670
+331,232
1
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
Investment Division Selected Investment Data
Analysis of the Pooled Money Investment Account Portfolio
(DOLLARS IN THOUSANDS)
December 31, 2013
DIFFERENCE IN
PERCENT
PERCENT OF
aF-
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT ffi
PORTFOLIO
PRIOR MONTH
Government
Bills
14,033,089
24.33
+0.22
Bonds
0
0.00
0
Notes
17,263,832
29.94
-0.59
Strips
0
0.00
0
Total Government
31,296,921
54.27
-0.37
Agency Debentures
1,639,181
2.85
-0.57
Certificates of Deposit
8,925,006
15.48
+4.91
Bank Notes
0
0.00
0
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Agency Discount Notes
1,298,659
2.25
-1.12
Time Deposits
4,471,640
7.75
-0.17
GNMAs
0
0.00
0
Commercial Paper
3,149,185
5.46
+1.53
FHLMC/Remics
143,739
0.25
.0.01
Corporate Bonds
0
0.00
0
AB 55 Loans
354,321
0.61
0
GF Loans
6,238,400
10.82
-3.49
NOW Accounts
0
0.00
0
Other
149,896
0.26
-0.71
Reversed Repurchases
0
0.00
0
Total (All Types)
57,666,948
100.00
INVESTMENT ACTIVITY
December 2013
November 2013
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
374
18,639,958
377
18,699,107
Other
16
335,487
29
1,401,547
Time Deposits
84
1,888,500
69
1,031,000
Total
474
20,863,945
475
21,131,654
PMJA Monthly Average Effective Yield
0.264
0.263
Year to Date Yield Last Day of Month (%)
0.265
0.266
2
Pooled Money Investment Account
Portfolio Composition
$57.7 Billion
Commerci
5.46
Time Deposits
7.75%
CDs/BN�
15.48%
12/31/13
Loans
11.43%
/A�Jwlums
5.36% Mortgages
0.25%
Treasuries
54.27%
3
Institutional - Announcements, Data & Results
Page I of 1
TreasuryDirecit,
Announcements, Data & Results
, notes, bonds, FRNs, and TIPS at regularly scheduled auctions. Refer to the auctao
elease for more information. Follow the links below to get the latest
information on:
1eaLa1lYP-AY&V." (PDF)
The schedule ofTreasury securities
auctions is released
at the Treasury's
Quarterly Refunding press
conference, usually
held on the
first Wednesday of February,
May, August, and November,
lJoc9mina Aucti[gm
Alsdil-119AM for-ftzsarrh
Click to rind additional
statistics
from May 5, 2003 through
April 1, 2008, which Includes
information on
bidding by primary
dealers, direct bidders, and indiiect bidders.
Note: The following table displays data for the 20 most recently auctioned securities
that have not yet
matured, for each security
type. If you would like to see data for additional securities,
please use our
Bills
N OtGS
Bonds
TIPS
FRNs
Security Term
CUSIP
CM13
Maturity
High Investment
Date
Date
Rate Rate
4-Week
9. i 229.LKI&�.
No
01/30/2014
02/27/2014
0.050% 0.051%
13-Week
1112/96BL8
No
01/30/2014
05/01/2014
0.055% 0.056%
26-Week
.9.1 "PKZ
No
01/30/2014
07/31/2014
0.065% 0.066%
4-Week
912796BZI
No
01/23/2014
02/20/20 4
0.000%
0.000%
. . . . . ........
1
j-
13-Week
9.1-7299K.N
No
01/23/2014
04/24/20:4
0.
0.035%
26-Wee k
912��)61315
No
01/23/2014
07/24/2014
0.
0.061%
1 4-Week
No
01/16/2014
OZ/13/2014
0.000%
0.000%
I 13-Week
9 12?96CI 10
No
01/16/2014
04/17/2014
0.035%
0.035%
26-Week
No
01/16/2014
07/17/2014
0.055%
0.056%
4-Week
91a7q6 M
No 01/09/2014
OZ/06/2014
0.000%
0.000%
52-Week
No 01/09/2014
01/08/2015
0.125%
0.127%
13-Week
QA2-iChKGZ
No 01/09/2014
04/10/2014
0.055%
0,056%
26-Week
.... . ........ . ...
2.7!gDit±j�
. ... ... .
No 01/09/2014
...... .
1 07/10/2014 1
0.080%
0.081%
13-Week
012 7,)6BA6
No 01/02/2014
1 04/03/2014 1
0.065%
0.066%
. . ........... .... ......... .. .
.. . ...............
26-Week
9.1?29hPT.1
No
01/02/2014
07/03/2014
0.090%
0.091%
13-Week
912n6CE7
No
12/26/2013
03/27/2014
0 , 070%
0.071%
26-Week
13�3
No
12/26/2013
06/26/2014
0.090%
0.091%
13-Week
917796CD9
No
12/19/2013
03/20/2014_
0.065%
0.066%
t
26-Week
No
12/19/2013
06/19/2014
0.0900%
0.091%
52-Week
JIZ L19 5 [) IV
No
12/12/2013
12/11/2014
0.135%
0.137%
Account Login
Select an Application
TreasuryDirect
Resources & Tools
Auction Results
. ........ .. ...... ........ ........ . ................ - - --
Upcoming Aucti 0 ns
Research Data
Debt to the Penny
RSS Feeds
Mailing Lists
CLISIP Search
Enter a CUSIP Number:
Savings Bond Rates
E-,E B o n d s � Laoj)-O;
0.100/0 1.38%
Fixed
Rates effective through April 30,
2014. New Rates will be posted
May 1, 2014.
I- Translate-1
6
http://www.treasurydirect.gov/instit/annceresult/annceresult.htm 1/30/2014
Institutional - Announcements, Data & Results
Page I of I
TreasuryDirect,,
Announcements, Data & Results
T
.:1u1y'=n1il%n'O,1:s,' .10�1:,,111N,,,and TIPS at regularly schedU led a uctions. Refer to the atActl n
In
ases for more information. Follow the links below to get the latest
information ow
(PDF)
The schedule ofTreasury securities auctions is released atLheTreasury's Quarterly Refunding press
conference, usually held on the first Wednesday of February, May, August, and November,
11P;;9_nfting_Ai
V.fi9ft".Aft1Q.r R-OPPE.V11
Click to find Additi "n l.stitastics from May 5, 2003 through April 1, 2008, which Includes
information on bidding by primaiy dealers, direct bidders, and Indirect biddels.
Note: The following table displays data For the 20 most recently auctioned securities that have not yet
matured, for each security type. If you would like to see data for additional securities, please use our
��.WQLIQL&Y.'
Bills Notes Bonds TIPS FRNs
Security Term
I ... . ... .
5-Year
2-Year
1 -1-
0 -Year
CUSIP
. . . . ... .
Reopening
. ........... .
No
No
.
Ye
No
No
.
Issue
Date
01/31/2014
01/31/2014
-
01/15/2014
01/15/2014
12/31/2013
.......... . I ........ . ......... ......... .
Maturity Date
01/31/2019
!!e�__.
11/15/2023
01/15/2017
12/31/2020
..... . .....
.7
High Yield
I -
1.572%
0.380%
,
3.009%
. . ...............................
Interest Rate
, -_ -
1.500%
0.375%
_ __ ....' .. . ...............
2.750%
9 1282EIB41
.
2,
3-Year
1112EI28API
0.799%
.
2.385%
0.750%
. . .... . ...... ...... ......
2.375%
7-Year
5-Year
912828A7
No
12/31/2013
12/31/2018
1.600%
1.500%
I.L10-y7y:
-
S12.6miW'7
-
No
- --
12/31/2013
-
12/31/2015
0.345%
0.250%
-1.,
91262SWE6
Yes
12/16/2013
11/15/2023
2.824%
2.750%
3-Year
No
12/16/2013
12/15/2016
0.631%
0.625%
7-Year
...
5-Year
2-Year
10-Year
91282EIA42
No
........
No
12/02/2013
12/02/2013
11/30/2020
11/30/2018
2.106%
2.000%
. . . .... .
1,340%
0.300%
. ............ __
2.750%
1.250%
0.250%
2.750%
IM2828Q
912828WF
No
No
12/02/2013
11/15/2013
11/30/2015
11115/2023
3-Y..r
No
. . ...
No
11/15/2013
. .......... .
10/31/2013
11/15/2016
10/31/2020
10/31/2018
0.644%
1,870%
0.625%
1,750%
7-Year
�W.p 2-11�1.1W.KA
5-Year
912�2_OW
NO
10/31/2013
1.300%
1.250%
2-Year
No
Yes
No
10/31/2013
10/15/2013
10/15/2013
10/31/2015
08/15/2023
10/15/2016
0.323%
. ......... . .. . ..
0.250%
2.500%
10-Year
91282SV56
2.657%
3-Year
7-Year
9.12
912,918 7
. .. ... . ...
0.710%
0.625%
No
09/30/2013
2.058%
2.000%
Select an Application
TreasuryDirect
Resources & Tools
Auction Results
Upcoming Auctions
Research Data
Debt to the Penny
RSS Feeds
Mailing Lists
CUSIP Search
Enter a CUSIP N ber:
___ __ M.
Savings Bond Rates
LE19-1-k-1 I Bonds:
0.100/0 1.38%
Fixed
Rates effective through April 30,
2014 New Rates will be posted
May 1, 2014.
F-ir. -_-- I --ft],
http://www.treasurydirect.gov/instit/an-nceresult/annceresult.htm 1/30/2014 7
Institutional - Announcements, Data & Results
Page 1 of I
TreasuryDirect
Announcements, Data & Results
Treasury sells bills, notes, bonds, FRNs, and TIPS at regularly scheduled auctions. Refer to the auction
ann UnceMen is I& results press release for more Information. Follow the links below to get the latest
information on:
a F.yjeLV
it _rjWj!g;j (PDF)
The schedule ofTreasury securities auctions is released at the Treasury's Quarterly Refunding press
conference, usually held on the first Wednesday of February, May, August, and November.
U,Dcomina AtirU_9_0,�,
Click to Find additional statistics from May 5, 2003 thrOLIgh April 1, 2008, which includes
information on bidding by primary dealers, direct bidders, and indirect bldcleis,
Note: The following table displays data for the 20 most recently auctioned securities that have not yet
matured, for each security type. If you would like to see data for additional securities, please use our
Bills Notes Bonds TIPS FRNs
Security Term CUSIP
30-Year
30-Year 91281OR02
30-Year
30-Year E12SIORC4
30-Year 9VAEARLI!
30-Year 912820RCA
30-Year 9141119fl§�.
Reopening.j.7
Yes
Yes
1,95,5/,"
0
/1 2014
15/2014
12/16/2013
11/15/2013
.. .......... ----
maturity Date
11/15/2043
11/15/2043
11/15/2043
.
High Yield
3.899%
3.900%
3.810%
3.758%
3.820%
3.652%
. . ......
Interes "ato
3
3.11.%
3.750%
No
Yes
10/15/2013
08/15/2043
08/15/2043
08/15/2043
3.625%
Yes
09/16/2013
3,625%
No
06/15/2013
07/15/2013
3.625%
Yes
05/15/2043
3.660%
2.875%
30-Year 212 -9 lj�'? B 6 Yes
.......... .
30-Year No
Zy Mir rikk
30-Year 912810OZ4 Yes
. . . . . . ................
30-Year Yes
30-Year 9128iOOZ4 No
30-Year Yes
30-Year 9 Yes
30-Y ear �,jj No
30-Year 912SIC)Qxg Yes
30-Year Yes
30-Year 91281OQXQ No
.......... ...
30-Year Yes
30-Year 9128100� Yes
06/17/2013
05/15/2013
05/15/2043
3.355%
2.875%
2.875%
3.125%
3.125%
3.125%
2.750%
2,750%
2.750%
2.750%
05/15/2043
2.980%
2.998%
3.248%
04/15/2013
03/15/2013
02/15/2013
01/15/2013
12/17/2012
02/15/2043
02/15/2043
02/15/2043
11/15/2042
11/15/2042
11/15/2042
I
3.180%
3.070%
2.917%
2.820%
2.904%
O..�
11/15/2 1
10/15/2012
08/15/2042
09/17/2012
08/15/2042
2.896%
2.750%
08/15/2012
08/15/2042
2.825%
2.750%
................
3.000%
07/16/2M
05/15/2042
2.580%
06/15/2012
05/15/2042
;2 720%
3.000%
Select an Application
ITreasur yDirect
Auction Results
.. ...................
Upcoming Auctions
Research Data
Debt to the Penny
RSS Feeds
'Mailing Lists
I CUSIP Search
Fa CUSIP Number:
-11117 - 0 .1
Savings Bond Rates
E-E Bonds: 1 Bonds:
0.100/0 1.38%
Fixed
Rates effective through April 30,
2014. New Rates will be posted
May 1, 2014.
F T -r. -I tal
I - I
8
http://www.treasurydirect.gov/instit/annceresult/annceresult.htm 1/30/2014
Printer Version - Board of Governors of the Federal Reserve System Page I of 4
Selected Interest Rates (Weekly) - H. 15
Current Release Release Dates Daily UWat Historical Data About Announcements Technical Q&As
Current Release C48 KB PDI,'
Re lease Da te: January 27, 2014
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 wil I not be posted on
that Tuesday.
January 27, 2014
H. 15 Selected Interest Rates
Yields in percent per annum
Instruments
Federal funds (effective)
2014
Jan
20*
2014
Jan
21
2014
Jan
22
2014
Jan
23
2014
Jan
24
0.07
Week Ending
2013
Dec
Jan
24
Jan
17
0.07
0.07
0.07
0.07
0.07
0.07
0.09
Commercial Paper 3 4
Nonfinancial
1-month
0.06
0.04
0.04
0.03
0.04
0.05
0.06
2-month
n. a.
0.08
0.04
0.05
0.06
0.06
0.07
3-month
Financial
1-month
n.a.
0.10
0.08
0.09
0.09
0.09
0.09
0.07
n.a.
n. a.
0.07
0.07
0.07
0.07
2-month
0.09
0.09
0.10
0.10
0.10
0.08
0.10
3-month
0.11
0.13
0.14
0.12
0.13
0.11
0.14
Eurodollar deposits (London) 3 - 7
1-month
0.19
0.19
0.19
0.19
0.19
0.19
0.19
0.20
3-month
0.26
0.26
0.26
0.26
0.26
0.26
0.26
0.27
6-month
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.42
Bank prime loan 9
Discount window primary credit 2 a
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
0.75
0.75
0.75
0.75
0.75
0.75
0.75
0.75
U.S. government securities
Treasury bills (secondary market) 4
4 week
0.02
9
http://www.federalreserve.gov/releases/Hl 5/Current/ 1/30/2014
Printer Version - Board of Governors of the Federal Reserve System Page 2 of 4
3-month
0.04
0.04
0.04
0.04
0.04
0.04
0.07
6-month
0.07
0.07
0.05
0.06
0.06
0.06
0.10
1-year
0.11
0.10
0.10
0.10
0.10
0.11
0.13
Treasury constant maturities
Nominal 10
1-month
0.01
0.00
0.01
0.04
0.02
0.01
0.02
3-month
0.04
0.04
0.04
0.04
0.04
0.04
0.07
6-month
0.07
0.07
0.05
0.06
0.06
0.06
0.10
1-year
0.12
0.11
0.11
1 0.11
0.11
0.11
0.13
2-year
0.40
0.44
0.39
0.37
0.40
0.40
0.34
3-yea
0.81
0.85
0.77
0.75
0.80
0.78
0.69
5-year
1.67
1.72
1.62
1.58
1.65
1.65
1.58
7-year
2.29
2.34
2.24
1 2.20
2.27
2.29
1 2.29
10-year
2.85
2.87
2.79
1 2. 5
2.82
2.86
2.90
20-year
3.50
1 3.52
3.44
3.40
3.47
3.53
3.63
30-year
3.74
3.75
3.68
3.64
3.70
3.78
3.89
Inflation indexed1i
-0.08
-0.08
5-year
-0.04
-0.07
-0.10
-0.10
-0.09
7-year
0.47
0.42
0.47
0.46
0.46
0.43
0.47
10-year
0.59
0.62
0.61
0.62
0.60
0.74
20-year
1.14
1.16
1.11
1.14
1.15
1.32
30-year
Inflation -indexed long-term average 12
1.42
1.44
1.38
1.36
1.40
1.43
1.61
1.10
1.12
1.06
1.03
1.08
1.10
1.27
Interest rate swaps 13
1-year
2-year
3 -yea r
0.30
0.30
0.29
0.30
0.30
0.30
0.29
0.52
0.53
0.52
0.48
0.51
0.50
0.43
0.91
0.94
0.91
0.84
0.90
0.89
0.77
4-year
5-year
7-year
10-year
1.34
1.38
1.34
1.27
1.33
1.32
1.20
1.74
1.78
1.74
1.67
1.73
1.73
1.64
2.37
2.39
2.36
2.29
2.35
2.37
2.33
2.93
2.95
2.93
2.85
2.92
2.96 1
2.95
30-year
1
3.72
3.72
3.71
3.65
3.70
3.78
3.81
Corporate bonds
Moody's seasoned
Aaa 14
4.46
4.48
4.43
4.45
4.46
4.48
4.62
Baa
5.17
5.11
5.10
5.13
5.19
5.38
10
http://www.federalreserve.gov/releases/H I 5/Current/ 1/30/2014
Printer Version - Board of Governors of the Federal Reserve System Page 3 of 4
State & local bonds 15 4.50 4.50 4.55 4.73
Conventional mortgages 10 4.39 4.39 4.41 4.46
* Markets closed.
n.a. Not available.
Footnotes
1. The daily effective federal funds rate is a weighted average of rates on brokered trades.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar
day in the month.
3. Annualized using a 360-day year or bank interest.
4. On a discount basis.
5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades
represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are
equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page
(www. federal rese rve. gov/re I cascs/c ).
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. Source: Bloomberg and CTRI3 ICAP Fixed Income & Money Market Products.
8. 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.
9. 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 "�ww.re�ler�ilreserve.gt)v/lioii-ddoc.q2i-cs,,,i'licrcg,/2002/2002103 12/deflauli.litni. 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.-federa[reserve.gov/reIeases/h I 5/da(a.htm.
10. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity
series was discontinued on February 18, 2002, and reintroduced on February 9, 2006. From February 18, 2002, to February 9, 2006,
the U.S. Treasury published a factor for adjusting the daily nominal 20-year constant maturity in order to estimate a 30-year nominal
rate. The historical adjustment factor can be found at Source: U.S.
Treasury.
11. 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 ww�v.treasLiry.siov/resource-centei�/(Iata-charl�-
center/interest-rates/.
http://www.federalreserve.gov/releases/H I 5/Current/ 1/30/2014 11
Printer Version - Board of Governors of the Federal Reserve System Page 4 of 4
12. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years.
13. International Swaps and Derivatives Association (ISDAV) 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 ICAP plc and published on Thomson
Reuters Page ISDAFIXVI. ISDAFIX is a registered service mark of ISDA8. Source: Thomson Reuters.
14. 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.
15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations.
16. Contract interest rates on commitments for 30-year fixed-rate first mortgages. Source: Primary Mortgage Market Surveys data
provided by Freddie Mac.
Note: Weekly and monthly figures on this release, as well as annual figures available on the Board's historical H. 15 web site
(see below), are averages of business days unless otherwise noted.
Current and historical H.15 data are available on the Federal Reserve Board's web site (www,federalreserve,y,1!v/). 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, 20, and 30 years.
http://www.federalreserve.gov/releases/H I 5/Current/ 1/30/2014 12
POOLED MONEY INVESTMENT ACCOUNT
Summary of Investment Data
A Comparison of January 2014 with January 2013
(DOLLARS IN THOUSANDS)
January January 2013 ange
I H1
Average
Daily Portfolio
54,485,102
68,322,631
-3,837,429
Accrued
Earnings ($)
11,304
14,858
-3,654
Effective Yield (%) 0.244 0.300 -0.056 1
Average Life -Month End (in Days)
221
226
.5
Total Security Transactions
Amount
19,922,033
19,896,419
+26,614
Number
399
398
+1
Total Time Deposit Transactions
Amount
3,661,800
4,226,800
-575,000
Number
127
141
-14
Average Workday Investment Activity
1,122,563
1,148,677
-26,114
Prescribed Demand Account Balances
For Services ($)
2,159,368
1,474,327
+685,041
13
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
Investment Division Selected Investment Data
Analysis of the Pooled Money Investment Account Portfolio
(DOLLARS IN THOUSANDS)
January 31, 2014
DIFFERENCE IN
PERCENT
PERCENT OF,
Q-F-
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
14,582,930
25.58
+1.26
Bonds
0
0.00
0
Notes
17,663,911
30.98
+1.04
Strips
0
0.00
0
Total Government
32,246,841
56.56
+2.29
Agency Debentures
1,984,774
3.48
+0.63
Certificates of Deposit
9,776,138
17.15
+1.67
Bank Notes
100,000
0.17
+0.17
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Agency Discount Notes
1,298,933
2.28
+0.03
Time Deposits
4,547,640
7.98
+0.23
GNMAs
0
0.00
0
Commercial Paper
5,623,280
9.69
+4.23
FHLMC/Remics
140,682
0.26
0
Corporate Bonds
0
0.00
0
AB 55 Loans
368,340
0.63
+0.02
GF Loans
886,900
1.55
-9.27
NOW Accounts
0
0.00
0
Other
149,896
0.26
0
Reversed Repurchases
0
0.00
0
Total (All Types)
57,011,424
100.00
INVESTMENT ACTIVITY
January
2014
December
2013
NUMBER
AMOUNT I$
NUMBER
AMOUNT ($
Pooled Money
399
19,922,033
374
18,639,958
Other
1
3,800
16
335,487
Time Deposits
127
3,651,800
84
1,888,500
Total
527
23,577,633
474
20,863,945
PMIA Monthly Average Effective Yield
0.244
0.264
Year to Date Yield Last Day of Month (%)
0.262
0.265
2
14
Pooled Money Investment Account
Portfolio Composition
$57.0 Billion
Time Depo
7.98%
CDs/BNs
17.32%
01/31/14
Loans
Commercial Paper 2.18%
9.69%
O.Vz-/O
Mortgages
0,25%
Treasuries
56.56%
3
15
Institutional - Announcements, Data & Results
Page I of 1
TreasuryDirect,
Announcements, Data & Results
T
.=ury�=n1,11.1,, notes, bonds, FRNs, and TIPS at regularly scheduled auctions. Refer to the Ouctio
U. press ie case for more information. Follow the links below to get the latest
Informatlon on:
(PDF)
The schedule of Treasury securities auctions is released at the Treasury's Quarterly Refunding press
conference, usually held on the first Wednesday of February, May, August, and November,
lJocoming Auctions
Click to find AAdiLjgAaL5jaAjj§jj".
from May 5, 2003 through April 1, 2008, which includes
information on bldding by primary
dealers, direct bidders,
and indirect bidders.
Note: The followlng table
displays data for the
20 most recently
auctioned securlties
that have not yet
matured, for each securlty
type. If you would like to see data for additional securitles, please use
our
Bills
- - -- ---
Notes
Bonds
--
TIPS
FRNs
-
Security Term
CUSIP
CME1
-
Is
: t.c
1
Maturity
1--
Hlh investment
D
Date
Rate
Rate
4-Week
9. 1 W.-L) (&..1w
No
03/06/2014
OINJI2034
0.045%
0.046%
52-Week
2 11� 6 1) PI
No
03/06/2014
03)0512015
0.120%
0.122%
13-week
9 WTY�.I?A.4,
No
03/06/2014
06/05/2014
0.050%
0.051%
26-Week
912.7961)�S
No
03/06/2014
09/0412014
0.080%
0.081%
66-Day
Yes
03/03/2014
05/08/2014
0.050%
0.051%
4-Week
9-1�Z_LMCEY
No
02/27/2014
03/27/2014
0.035%
0035%
13-Week
1,�L?..?T REZ
No
02/27/2014
05/29/2014
0.045%
0.046%
26-Week
91219�DRY
No
02/27/2014
08/28/2014
0 , 075%
0.076%
4-Week
No
........ . . -
02/20/2014
03/20/2014
0,035%
1
O.Cam
13-Week
9 �VQKZO
No
02/20/2014
05/22/2014
0.050%
oXS1%-
26-Week
911129AH.h
No
02/20/2014
08/21/2014
U.075%
0.076%
58-Day
91219(,CI-10
Yes
02/18/2014
04/17/2014
0.050%
0.051%
4-Week
-13-Week-
--912796CM
No
02/13/2014
-02/--1-3/2,-01-4-
03/13/2014
-05-/-1-5/2-014
0.030%
0.030%
No
0-.09-5%--
0.096%
26 Week
No
OV13MI4
08/14/2014
0.110%
0.112%
72-Day
�)12,96CJ6
Yes
02/)L/2014
04/24/2014
0,090%
0.091%
52-Week
No
02/06/2014
02/05/2015
0.115%
0.117%
13-Week
9127Q6CK3
j No
02/06/2014
05/08/2014
0,040%
0,041%
26-Week
No
02/06/2014
08/07/2014
0.060%
0.061%
13-Week
1)1�)96KQ
No
01/30/2014
05/01/2014
0.055%
0.056%
Select an AppilcaUnn
TreasuryDliecl
I=
Qggn go 8"QUni;
Auction Results
Upcoming Auctions
Research Data
Debt to the Penny
RSS Feeds
L--!i ailing Lists
CUSIP Search
Enter a CUSIP Number:
. . . . . .. . ....................
Savings Bond Rates
LLOM)J�.i Donal"
0.100/0 1.38%
Fixed
Rates effective through April 30,
2014. New Rates will be posted
May 1 , 2014.
Translate
16
http://www.treasurydirect.gov/instit/annceresult/annceresult.htm 3/6/2014
Institutional - Announcements, Data & Results
Page I of 1
TreasuryDired,
Announcements, Data & Results
T I tie
,=ury,,ells blils, notes, bonds, FRNs, and TIPS at regularly scheduled 8L CLIOnS. Refer 0 1
U. emen ts & res Lilts for More information. Follow the links below to get the latest
iff.r.allon on:
T.r..u-su.",S&wjrJfl.eS (PDF)
The schedule of Treasury securlLies auctions is released at the Treasury's
Quarterly Refunding press
conference, usually held on the
Uproming Auction
first Wednesday of February,
May, August,
and November,
J1.1figfitt-DAtaIx. R=-cm-ch
Cllck to find additional statistics
from May 5, 2003 through APF11 1, 2008,
which Includes
information on bidding by primary
dealers, d1rect bidders, and indiiect biddeis,
Note: The following table displays data for the 20 most recently
aucLioned securities that have
not yet
matured, for each security type. If you would like to see data
for additional securitles,
please use our
Bills Notes
Bonds
TIPS
FRNs
Issue
a-curltyTarm T cusip Reopening Date
Maturity Date
High Yield Interest Ratc
7-Year
No
02/28/2014
02/28/2021
2.105%
2.000%
5-Year 912628C24
No
02/28/2014
02/28/2019
1.530%
1.500%
2-Year
No
02/28/2014
0212912 0 16
0.340%
0.250%
10-Year lij?$28(366
No
02/18/2014
02VI!V2024
2.795%
2.750%
. . .... . ....
3-Year
No
02/18/2014
02/15/2017
0.715%
0.625%
5-Year 91282SD33
No
01/31/2014
01/31/2019
1.572%
1.500%
7-Year
No
01/31/2014
01/31/2021
2.190%
2.125%
2-Year 9128�131�A41
.............
No
01/31/2014
01/31/2016
0,380%
0.375%
10-Year
Yes
01/15/2014
11/15/2023
3.009%
2.750%
3-Year 9t2B2SAc)1
No
01/15/2014
01/15/2017
0.799%
0.750%
7 Year
I
No
12/31/2020
2.385%
2.375%
5-Year
91218,21JAI-9
No
12/11,12013
12/31/2018
1.600% 1
1.500%
2-Year
9-2S.L8A[?..7
No
12/31/2013
12/31/2015
0.345%
0.250%
10-Year
912828WE6
Yes
12/16/2013
11/15/2023
2.824%
2.750%
3-Year
12.112A.Z0.152
No
12/16/2013
12/15/2016
0.631%
0.625%
7-Year
Q12828A42
No
2/02/2013
11/30/2020
2.106%
2.000%
5-Year
�).U.T.OA1.1
No
:2/02/2013
11/30/2018
1.340%
1.250%
2-Year--T91282SA26
No
12/02/2013
11/30/2015
0.300%
0.250%
10-Year
I lj),:11,�...O.Zf.��.N
. Y-
No
11/15/2013
11115/2023
2.750%
2.75091,
3-Year
912828WF3
No
11/15/2013
11/15/2016
0.644%
0.625%
SaIeCt an ADPIIE�atictrl
TreasuryDirect
R=
Auction Results
...... .... .
Upcoming Auctions
Research Data
Debt to the Penny
RSS Feeds
Mailing Lists
CUSIP Search
Enter a CUSIP Number:
Savings Bond Rates
E-E tLn-ng-�.: L-3QU)i;1L
0.100/0 1.38%
Fixed
Rates effective through April 30,
2014. New Rates will be posted
May 1, 2014.
Ijr.,n.l.t.1
17
http://www.treasurydirect.gov/instit/annceresult/annceresult.htm 3/6/2014
Institutional - Announcements, Data & Results
Page I of I
TreasurXDirect,,
Announcements, Data & Results
Treasury sells bills, notes, bonds, FRNs, and TIPS at regularly scheduled aUctions. Refer to the auction
- &results press j[e_LQp_-i_U for more information. Follow the links below to get the latest
information on:
(PDF)
The schedule ofTreasury securities auctions is released at the Treasury's Quarterly Refunding press
conference,
Upcomana
usually held on the first Wednesday of Febi
Auctions
uary, May, August, and November.
.U."ful. PoliA.1-w Jlpurardl.
Click to find
additional statistics
from May 5, 2003 thrOLIgh
April 1, 2008, which includes
Information
on bidding by primary
dealers, direct bidders, and Indliect
biddels.
Note: The following table displays data for the 20 most recently
auctioned securities that have not yet
matured, for each
security type. If you would like to gee data
foi additional securities, please use our
Avkqo..Qu�ay..
Bills
Notes
Bonds
TIPS
FRNs
Security Term
CUSIP Rec"ning Issue
Date
Maturity Date
High Yield Interest Rate
30-Year
No
02/18/2014
02/15/2044
3.690% 3.625%
30-Year
91261OR()2 Yes
01/15/2014
11/15/2043
3.699% 3.750%
30-Year
9.A ZWEN Yes
12.1 ill/�13 I.J1
11/1512043
3.900% 3.750%
30-Year
9128tORD2 No
11/15/2013
11/15/2043
3,810% 3.750%
30-Year
9W.14,10cli Yes
10/15/2013
08/15/2043
3.758% 3.625%
30-Year
9128101kcl Yes
09/16/2013
08/15/2043
3.820%
3.625%
30-Year
9.312.ftLOF&A No
08/15/2013
08/15/2043
3.652%
3.625%
30-Year
912010RU6 Yes
07/15/2013
05/15/2043
3.660%
2.875%
30-Year
Yes
06/1712013
05/15/2043
3.355%
2.875%
r0-yea r
912840R(3 NO
1 05/1512013
05/15/2043
2.980%
2.875%
.1 30-Year
E=Nt4 Yes
04/:5/2013
02/1512043
2.998% 1 3.125%
30-Year
9N81LK111 I Yes
1 03 5/2013
0211512043
3,248%
3.125%
30-Year
0,12.012(241 No
02/15/2013 1
02/15/2043
3.180%
1 3.125%
30-Year
91281OOY7 Yes
01/15/2013
11/15/2042
3.070%
2.750%
30-Year
............
LMAQV Yes
.............
-12/17/2012
11/15/2042
2.917%
2.750%
30-Year
4=2VIQ��Y No
11/15/2012
11/15/2042
2.820%
2.750%
. . .... .. .... .
30-Year
. _7
Yes
10/15/2012
08/15/2042
2.904%
2.750%
30-Year
91281OUX" Yes
09/17/2012
08/15/2042
2.896%
2.750%
30-Year_
No
08/150012
08j 15/204
2.825% 2.750%
30-Year
Q I 2EI I gow L Yes
07136/2012
05/1512042
2.580% 3.000%
022�
Select an Application
TreasuryDirect
I I
7
Auction Results
Upcoming Auctions
Research Data
Debt to the Penny
CUSIP Search
Enter a CUSIP Number:
Savings Bond Rates
LL, Oonds� LB-Orids-
0.100/0 1.38%
Fixed
Rates effective through April 30,
2014. New Rates will be posted
May 1, 2014.
[Translate I
18
http://www.treasurydirect.gov/instit/annceresult/anneeresult.htm 3/6/2014
FRB: H.15 Release-- Selected Interest Rates --February 3, 2014
Page 1 of 3
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Home � Economic Research & Data > Statistical Releases and Histortcal Data
Selected Interest Rates (Weekly) - H. 15
Current Release R D I Daily Update Historical Data About Announcements Technical O&A
Current Release (4g IS_@ Fpf)
Rt�lease Date.: February 3. 2014
11111 DDP 91,PLInc
1_.._1..._.1, ...... ........... �
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 -
February 3, 2014
H. 15 Selected Interest Rates
Yields in percent per annum
2014
Z014
2014
2014
2014
Week Ending
Instruments
Jon
)an.
Jan
Jon
Jan
Jan
Jan
2014
]on
27
28
29
30
31
31
24
Federal funds (effective) IL 2 2
0. U7
0.07
0.07
0.07
0.07
0.07
0.07
0.07
Commercial Paper
Nonfinancial
1-month
0.04
0.04
0,06
0.05
0.05
0.05
0.04
0.05
2-month
0.08
0.07
0,08
0.05
0.06
0.07
0.06
0.06
3-month
0.11
0.10
0.10
0.07
0.08
0.09
0.09
0.09
Financial
I -month
0.04
0.07
n. 11.
n.a.
n.a.
0.06
0.07
0.07
2-month
0.07
0.10
0.09
0.10
0.09
0.09
0.10
0.09
3-month
0.11
0.12
0.12
0.13
0.13
0.12
0.13
0.12
Eurodollar deposits (London) j Z
1-month
0.19
0.19
0.19
0.19
0.19
0.19
DA9
0.19
3-month
0.26
0.26
0.26
0.26
0.26
(3,26
0.26
0.26
6-month
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
Bank prime loan 2. .1
3.25
3-25
3,26
3125
3.25
3.25
3,25
3.25
Discount window primary credit.2 2.
0.75
0.75
0.75
0.75
0.75
0.25
0.75
0.75
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
0,04
0.05
0.04
0.04
0.03
0.04
0.07
0,02
3-month
0.05
0.05
0.04
0.02
0.02
0.04
0.04
O�04
6-month
0.07
0.07
0.07
0.06
0.06
0.07
0.06
0.07
1-year
0.10
0.10
0.10
0.09
0.09
0.10
0110
0111
Treasury constant maturities
Nominal �')
I -month
0.04
0.05
0.04
0.04
0.03
0.04
0.02
0.02
3-month
0.05
0.05
0.04
0.02
0.02
0.04
0.04
0.04
6-month
0,07
0.07
0.07
0.06
0.06
D.07
0.06
0.07
I -year
0.11
0.11
0.11
0.10
0.10
OA1
0.11
0.12
2-year
0.37
0.38
0.36
0.36
0.34
0.36
0.40
0.39
3-year
0.76
0.75
0.71
0.72
0.69
0.73
0,80
0.78
5-year
1.61
1.59
1.57.
1�55
1.49
1�55
1.65
1.65
19
http://www.federalreserve.gov/releases/H 15/20140203/ 3/6/2014
FRB: H. 15 Release-- Selected Interest Rates --February 3, 2014
Page 2 of 3
2014
2014
2014
2014
2014
Week Ending
2014
Instruments
Jan
Jan
Jan
Jan
Jan
Jan
Ja n
Jan
27
28
29
30
31
31
24
2.24
2.22
2.15
2,19
2.13
2,ig
2.2/
2.29
20-y4ar
2.78
2.77
2.69
2.72
2.67
2.73
2.82
2.86
20-year
3.43
3.43
3.36
3.40
3.35
139
3.47
3.52
30-year
3.67
3.68
3.62
3.65
3.61
165
3.70
3.77
Inflation Indexed U
5-year
-0.11
-0.12
-0.20
-0.21
-0.23
-0.17
-0.08
-0.09
7-year
0.45
0.45
0.35
0.34
0.33
0.38
0.46
0.45
10-year
0.64
0.62
0.55
0.57
0.53
0.58
0.62
0.63
20-year
1.14
1.14
1.08
1.10
1.07
1.11
1.14
1.17
30-year
1.39
1.40
1.35
1.36
1.33
1.37
1.40
1.44
Inflation -Indexed long-term average.12
1.07
1.07
1.01
1.03
1.00
1.04
1.08
1.11
Intere-st rate swaps 13
I-Veisr
0.30
0.30
0.30
0.30
0.29
0.29
0.30
0.30
2-year
0.49
0.49
0.48
0.48
0.46
0.48
0.51
0.50
3-year
0.86
0.87
0.84
0.85
0.82
0.85
0.90
0.88
4-year
1.29
1.30
1,26
1.27
1.23
1.27
1.33
1.32
5-year
1.68
1.70
1-65
1.66
1.62
1.66
1.73
1.73
7-year
2.29
2.32
2.27
2.28
2.23
2.28
2.35
2.37
10-year
2.85
2.89
2,85
, 2.85
2.79
2.85
2.92
2.95
30-yeir
3.63
3.68
3-65
3.65
3.60
3.64
3.70
3.76
Corporate bonds
Moodv's seasoned
Aaa 1-�
4.48
4.48
4.43
4.44
4.43
4.45
4.46
4.49
Daa
5.14
5.12
5.07
5.08
5.07
5.10
5,13
5.19
State & local bonds 12
4.48
4.48
4.50
4.59
Conventional mortgages Ifi
4.32
4.32
4.39
4.43
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.federalrese!y.e.apv/releases/ep .
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 [he direct or indirect effects of the now temporary
programs and, accordingly, likely are not comparable for some purposes to rates published prior to that period.
7. Source: Bloomberg and CTRB ICAP Fixed Income & Money Market Products.
8. 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
9. 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.federaireserve.00viboarddpcslpresstb_creg.- 00 0 103121default.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.federaireserve.nov/releases/hl 5/dala.111m
10. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity
series was discontinued on February 18, 2002, and reintroduced on February 9, 2006. From February 18. 2002, to February 9,
2006, the U.S. Treasury published a factor for adjusting the daily nominal 20-year constant maturity in order to estimate a 30-year
nominal rate. The historical adjustment factor can be found at
Source: U.S. Treasury.
20
http://www.federalreserve.gov/releases/H 15/20140203/ 3/6/2014
FRB: H.15 Release-- Selected Interest Rates --February 3, 2014
Page 3 of 3
11. Yields on Treasury inflation protected securities (TIPS) adjusted to constant maturities Source: US. Treasury Additional
information on both nominal and inflation -indexed yields may be found at yvw.treasury.00v/resource-conlar/data-che
conler/Interest-rates/
12 Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years
13. International Swaps and Derivatives Association (ISDAV) mid -market per 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 rn Eastern time by Thomson Reuters and published
on Thomson Reuters Page ISDAFIXG1. ISDAFIX is a registered service mark of ISDAO. Source: Thomson Reuters.
14 Moody's Asa rates through December 6, 2001, are averages of Asa utility and Asa industrial bond rates. As of December 7,
2001. these rates are averages of Asa industrial bonds only
15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations
16. Contract interest rates on commitments for 30-year fixed-rate first mortgages Source: Primary Mortgage Market Surveys date
provided by Freddie Mae
Note: Weekly and monthly figures on this release, as well as annual figures available on the Board's historical H.15 web site (see below), are averages of business days unless
otherwise noted.
Current and historical H 15 data are available on the Federal Reserve Board's web site (www.federalreserve.gov/� For information about individual copies or subscriptions, contact
Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-728-5686).
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Description of the Treasury Nominal and In fl ation -Indexed Constant Maturity Series
Yields on Treasury nominal securities at "constant maturity" are interpolated by the US 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, 6, 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 dally yield curve forTreasury 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, 20, and 30 years.
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Last update: February 3, 2014
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http://www.federalreserve.gov/releases/Hl5/20140203/ 3/6/2014