2022-2023 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF
LA QUINTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
Prepared by: Finance Department
City of La Quinta, California
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Prepared By: Finance Department
City of La Quinta, California
Table of Contents
June 30, 2023
INTRODUCTORY SECTION
Letter of Transmittal i
List of Principal Officers vii
Organizational Chart viii
Certificate of Achievement for Excellence in Financial Reporting (GFOA) ix
FINANCIAL SECTION
Independent Auditor's Report 1
Management's Discussion and Analysis 5
Government Wide Financial Statements
Statement of Net Position 16
Statement of Activities 18
Government Fund Financial Statements
Balance Sheet — Governmental Funds 20
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 22
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds 23
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 24
Proprietary Fund Financial Statements
Statement of Net Position — Proprietary Funds 25
Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds 26
Statement of Cash Flows — Proprietary Funds 27
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 29
Statement of Changes in Fiduciary Net Position 30
Notes to Financial Statements 31
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General Fund 73
Budgetary Comparison Schedule — Housing Authority 75
Budgetary Comparison Schedule — Disaster Recovery 76
Schedule of Proportionate Share of the Net Pension Liability — Miscellaneous Plan 77
Schedule of Pension Plan Contributions — Miscellaneous Plan 78
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios 79
Schedule of OPEB Contributions 80
Note to Required Supplementary Information 81
City of La Quinta, California
Table of Contents
June 30, 2023
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet — Nonmajor Governmental Funds 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds 90
Budgetary Comparison Schedules — Special Revenue Funds
State Gas Tax 96
Library and Museum 97
Federal Assistance 98
SLESA 99
Lighting and Landscaping 100
Quimby 101
La Quinta Public Safety Officer 102
Art in Public Places 103
South Coast Air Quality 104
AB 939 105
Housing Grants 106
Law Enforcement 107
Measure A 108
Economic Development 109
AB 1379 110
Budgetary Comparison Schedules — Capital Projects Funds
Capital Improvement 111
Maintenance Facilities DIF Fund 112
Infrastructure 113
Civic Center 114
Transportation 115
Parks and Recreation 116
Library Development 117
Community Center 118
Street Facility 119
Park Facility 120
Fire Facility 121
Budgetary Comparison Schedules — Debt Service Funds
Financing Authority 122
Internal Service Funds
Combining Statement of Net Position 124
Combining Statement of Revenues, Expenses and Changes in Fund Net Position 125
Combining Statement of Cash Flows 126
City of La Quinta, California
Table of Contents
June 30, 2023
STATISTICAL SECTION
Net Position by Component (Table 1) 128
Changes in Net Position (Table 2) 130
Changes in Net Position — Governmental Activities (Table 3) 132
Changes in Net Position — Business -type Activities (Table 4) 134
Fund Balances of Governmental Funds (Table 5) 136
Changes in Fund Balances of Governmental Funds (Table 6) 138
Tax Revenue by Source (Table 7) 140
Top 25 Bradley -Burns Sales Tax Producers (Table 8) 141
Top 25 Measure G Sales Tax Producers (Table 9) 142
Taxable Sales by Category (Table 10) 143
Assessed Value of Taxable Property (Table 11) 145
Direct and Overlapping Property Tax Rates (Table 12) 146
Principal Property Taxpayers (Table 13) 147
Property Tax Levies and Collections (Table 14) 148
Ratios of Outstanding Debt by Type (Table 15) 149
Ratio of General Bonded Debt Outstanding (Table 16) 151
Direct and Overlapping Debt (Table 17) 152
Legal Debt Margin Information (Table 18) 153
Pledged -Revenue Coverage (Table 19) 155
Demographic and Economic Statistics (Table 20) 156
Principal Employers (Table 21) 157
Full-time City Employees by Function (Table 22) 158
Operating Indicators by Function (Table 23) 159
Capital Asset Statistics by Function (Table 24) 160
Schedule of Insurance in Force (Table 25) 161
Other Information
Project Status 162
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II I
July 19, 2024
.,CaQdifr�,
CALIFORNIA
To the Citizens of La Quinta, and the Honorable Mayor and Members of the City Council:
It is with great pleasure that we present to you the Annual Comprehensive Financial
Report (ACFR) of the City of La Quinta for the fiscal year ending June 30, 2023. The ACFR
has been prepared by the Finance Department for the benefit of City Council members,
citizens, investors, grantors, employees, and others who may have an interest in the
financial well-being of the City.
The ACFR presents information regarding the City's financial activities. This transmittal
letter provides a non-technical summary of the City's finances, services, achievements,
and economic outlook. A more detailed analysis is presented in the Management's
Discussion and Analysis section (MD&A) that immediately follows the independent
auditor's report. The MD&A provides an overview and analysis of the basic financial
statements and complements this transmittal.
Responsibility for both the accuracy and the completeness of all disclosures rests with the
City of La Quinta. To the best of our knowledge and belief, the enclosed data is accurate
in all material respects and is reported in a manner designed to fairly present the financial
position and results of City operations. Supplementary disclosures are included to
summarize the City's financial activities.
This ACFR was prepared in conformance with Generally Accepted Accounting Principles
(GAAP). The City's financial reporting is based upon all Governmental Accounting
Standards Board (GASB) Statements; these pronouncements are the most authoritative
source for governmental GAAP. The City is responsible for ensuring an adequate internal
control structure is in place. The internal control structure is subject to constant
evaluation by the management of the City and annual review by independent auditors.
Reviews determine the adequacy of the internal control structure, as well as to determine
if the City complied with applicable laws and regulations. In reviewing internal control
structures, the cost of a control should not exceed the benefits to be derived, hence the
objective is to provide reasonable, rather than absolute assurance, that the financial
statements are free of any material misstatements.
Eide Bailly LLP, Certified Public Accountants, has issued an unmodified ("clean") opinion
on the City's financial statements for the year ended June 30, 2023. This is the most
favorable conclusion. The independent auditor's report is located at the front of the
78495 Calle Tampico 1 La Quints, California 92253 1760.777.70001 www .laquintaca,gov
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financial section. The independent audit involved examining evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles
used and estimates made by management, and evaluating the overall financial statement
presentation and conformity with GAAP.
Government Profile
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 has a permanent population of
approximately 38,000, within a boundary of 36 square miles. Each year nearly 18,000
seasonal residents also call La Quinta home from October through May. A natural paradise
in the Coachella Valley, the City is nestled between the Santa Rosa and San Bernardino
Mountains, is an integral part of the Coachella Valley's world-renowned resort and
retirement area, and is known for its championship golf, festivals and community events,
health and wellness, stunning views and spectacular trails.
The City was incorporated in 1982 as a general law City and became a charter city in
November 1996. It is governed by a five -member City Council under the
Council/Manager form of government. The Mayor is directly elected, serves a two-year
term, and represents the City at many public functions; the four Council Members serve
four-year terms, with two Council Members elected every two years. The Mayor and
Council Members are elected at large and also serve as the Board of Directors of the
Housing and Finance Authorities.
The Council appoints the City Manager, who in turn appoints the Directors of the various
departments except for the City Attorney who is appointed by the Council. The Finance
Director also serves as the City/Housing Authority Treasurer and the City Manager is also
the Executive Director of the Housing Authority.
The City provides a range of services, which include street and infrastructure construction
and maintenance; community development and planning; affordable housing programs;
code compliance; recreational and cultural activities; and operations management.
The City contracts with other government agencies and private entities for specific
services, including police and fire protection, library and museum services, water and
sewer service, electricity service, public transit, refuse collection, and street sweeping.
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78495 Calle Tampico 1 La Quints, California 92253 1760.777.70001 www .laquintaca,gov
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The City's annual operating and capital improvement budgets are adopted by resolutions
for the fiscal year that begins July 1St. Separate resolutions are adopted by the City
Council and Board of Directors of the Housing and Finance Authorities.
The annual budget is the foundation for the City's financial planning and control. The
budget is prepared by fund, function, department, and line item. Department Directors
may transfer line -item resources within a division with the approval of the City Manager.
The City Manager may authorize transfers between divisions and departments.
Local Economy
According to the State of California Employment Development Department, as of October
2023, the unadjusted unemployment rate for La Quinta was 5.5%, which was slightly
higher than unadjusted rates for Riverside County's at 5.4% and the statewide average of
5.0%. Current unemployment rates are greatly impacted by the continuing gains in jobs
in the Leisure & Hospitality and Private Education and Health Services sectors.
The City's dominant industries are tourism, recreation, and retail, with the following being
major employers: Desert Sands Unified School District, PGA West and Citrus Club, La
Quinta Resort and Club, Costco, and Wal-Mart Super Center.
Throughout the year La Quinta hosts a variety of multi -generational open-air events and
shines in the national spotlight as the only PGA golf tour event in the region with the
American Express Golf Tournament, which includes two nights of outdoor concerts. The
City also co -hosts Ironman 70.3 Indian Wells La Quinta, which brings over 3,000 athletes
and supporters from all over the world to the Coachella Valley. The City's cultural
diversity, values, unique characteristics and attributes are commemorated through artists
who showcase their high-quality artwork at the fine art event, La Quinta Art Celebration,
which is now held twice a year and is ranked number one in the United States by Art
Fair Sourcebook's Top 100 Fine Art Events.
Substantially or entirely completed projects during 2022/23 included Longhorn
Steakhouse, Welbe Health, a new Panera drive-thru, and WDC Kitchen & Bath along the
Highway 111 Corridor, and Rd Rnnr Restaurant in Old Town La Quinta.
78495 Calle Tampico 1 La Quints, California 92253 1760.777.70001 www .laquintaca,gov
Long-term Financial Planning
CALIFORNIA
Sound financial governance and prudent planning continues to be management's focus.
The City has a long history of providing superior service, life enrichment opportunities,
and a quality environment to its residents, businesses, and visitors. La Quinta has taken a
proactive approach to rising pension and public safety costs by building its reserve
categories and paying down the City's pension obligations. The City also continues to
collaborate with Riverside County and other regional cities on police services to identify
long-term savings.
The City ensures that its long-range goals are met through a variety of Boards and
Commissions. Each is comprised of Council -appointed residents, may include a City
Council representative, and are supported by City staff. In addition, the City has adopted
various financial policies and practices with the goal of sustaining a fiscally resilient
government over the long-term, assuring fiscal sustainability, as well as increasing
transparency and encouraging public engagement.
In 2022/23, the General Fund's overall fund balance increased by almost $20.1 million
when compared to the ending balance in 2021/22, mainly due to revenue increases
surpassing budget projections in areas such as transient occupancy taxes and sales tax.
As of June 30, 2023, all four of the City's reserve categories (Cash Flow Reserve, Natural
Disaster, Economic Disaster, and Capital Replacement) are fully funded to policy targets.
In June 2023 the City Council adopted a balanced budget without the use of reserves for
fiscal year 2023/24. The adopted budget had operating revenues exceeding expenses by
$1,649,350. The 2023/24 budget included sustained funding for essential services, such
as police, fire, and maintenance of critical infrastructure.
La Quinta has cultivated a sound foundation of General Fund revenues including sales tax,
transient occupancy tax, and property tax. The City was incorporated in 1982 after
Proposition 13 was approved (the landmark property tax reform initiative enacted in
1978); as such, the City receives a smaller share of property tax revenue but has also
secured additional property tax revenue from the County for fire and library services.
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78495 Calle Tampico 1 La Quints, California 92253 1760.777.70001 www .laquintaca,gov
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The Future
The City has a mixture of housing and commercial developments under construction.
Larger residential developments underway include Jefferson Street Apartments, Solterra,
Point Happy Homes, Barcelona Club Apartments (formerly Desert Club
Apartments), Cantera at Coral Mountain, and Palo Verde and commercial developments
include luxury Montage and lifestyle Pendry hotels, Hampton Inn, and Dune Palms
mixed-use project. Approved housing developments on the horizon include La Quinta
Village Apartments, Sierra Blanca, and Club at Coral Mountain.
The Highway 111 Corridor Plan (Plan) continues to be a priority with daily traffic
exceeding 40,000 vehicles, and accounting for nearly 80% of the City's annual sales tax
revenue. The two mile -long, 400 -acre regional commercial hub at the center of the City, is
being evaluated to create a more connected and walkable environment through the
implementation of form -based code (FBC). FBC is anticipated to reshape the corridor by
adding mixed-use and infill development and incorporating ever -evolving shopping trends.
The City recently acquired vacant property on the north side of Highway 111, which is
anticipated to be developed as a mixed-use project with commercial and residential
components furthering the City's goals of fostering mixed-use development, affordable
housing, multi -modal transportation, and the development of the Highway 111 corridor.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for
its ACFR for the fiscal year ended June 30, 2022. This was the twenty-sixth consecutive
year that the City received this prestigious award. In order to be awarded a Certificate of
Achievement, the City must publish an easily readable and efficiently organized ACFR.
This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for one year. We believe that our current ACFR
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.
We would like to express our appreciation to the City Council and the Financial Advisory
Commission for their ongoing oversight of the financial affairs of the City and their
prudent fiscal, economic, and land use policy and direction. We also thank City staff with
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78495 Calle Tampico 1 La Quints, California 92253 1760.777.70001 www .laquintaca,gov
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special appreciation to the Finance Department for their continued effort to provide
accurate financial data and the preparation of this report.
Respectfully Submitted,
Jon McMillen, City Manager
Claudia Martinez, Finance Director
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78495 Calle Tampico I La Quinta, California 92253 1760.777.1000 I www.laquintaca,gov
City of La Quinta
List of Principal Officers
June 30, 2023
CITY COUNCIL
Linda Evans, Mayor
Steve Sanchez, Mayor Pro Tem
Kathleen Fitzpatrick, Council Member
Deborah McGarrey Council Member
John Pena, Council Member
ADMINISTRATION
Jon McMillen, City Manager
Claudia Martinez, Finance Director/ City Treasurer
Danny Castro, Design and Development Director
Bryan McKinney, Public Works Director/ City Engineer
Gilbert Villalpando, Business Unit/Housing Development Director
Monika Radeva, City Clerk
William H. Ihrke, City Attorney
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CALIFORNIA
CITY OF LA QUINTA LA QIJINTA, CALIFORNIA
ORGANIZATIONAL CHART
La Quinta Residents
City Council
City Manager
City Attorney
City Clerk
Community
Resources
Public Works
Design &
Development
For listing of staffi ng by depa rtment a nd total number
of employees, see Statistical Secti on - Full Ti me Ci ty
Empl oyees by F uncti on.
viii
Fiscal
Services
GD
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Quinta
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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EideBailly®
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and Members of City Council
City of La Quinta, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, business -type activities, each
major fund, and the aggregate remaining fund information of the City of La Quinta, California (City), as
of and for the year ended June 30, 2023, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying 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, as of June 30, 2023, and the
respective changes in financial position, and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Adoption of New Accounting Standard
As discussed in Note 1 and 18 to the financial statements, the City has adopted the provisions of
Government Accounting Standards Board (GASB) Statement No. 96, Subscription -Based Information
Technology Arrangements (SBITAs), for the year ended June 30, 2023. Accordingly, a restatement has
been made to the governmental activities net position as of July 1, 2022, to restate beginning net
position. Our opinions are not modified with respect to this matter.
What inspires you, inspires us., eidebailly.com 1
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Correction of Error
As discussed in Note 18 to the financial statements, certain errors resulting in a misstatement of
amounts previously reported for Governmental Activities Capital Assets, activities of the Housing
Authority, and activities of the Private -Purpose Trust Fund Successor Agency of the former RDA as of
June 30, 2022, were discovered during the current year. Accordingly, a restatement has been made to
the Governmental Activities, the Housing Authority and the Private -Purpose Trust Fund Successor
Agency of the former RDA net position/fund balance as of June 30, 2022, to correct the error. Our
opinions are not modified with respect to this matter.
Responsibilities of Management 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; and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is
expressed.
2
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control—related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, schedule of the City's proportionate share of the net pension liability, schedule
of pension plan contributions, schedule of changes in the net OPEB liability/(asset) and related ratios,
schedule of OPEB contributions, and the budgetary comparison schedules for the General Fund, Housing
Authority and Disaster Recover special revenue funds and the related notes, as listed on the table of
contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, 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.
Supplementary 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 combining and individual fund
statements and schedules are presented for purposes of additional analysis and are not a required part
of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. The 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 fund statements and schedules are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
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Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory, the statistical sections and the Project Status: Highway 111
Bridge Funding but does not include the basic financial statements and our auditor's report thereon. Our
opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 19, 2024,
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 solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City's 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
the City's internal control over financial reporting and compliance.
Rancho Cucamonga, California
July 19, 2024
4
MANAGEMENT DISCUSSION
AND ANALYSIS
(UNAUDITED)
This narrative provides an overview and analysis of the City of La Quinta's (City) financial
activities for the fiscal year ending June 30, 2023. The City Executive Team encourages
readers to consider this information in conjunction with the data provided in our transmittal
letter, which is in an earlier section of this report. All amounts, unless otherwise indicated,
are rounded to the nearest thousand dollars and dates are represented by fiscal year.
Q
GHLIGHTS
At the close of 2022/23 (June 30, 2023):
• The total assets and deferred outflows of the City exceeded its total liabilities and
deferred inflows at the close of the fiscal year 2022/23 by $858,597,000 (net
position). Of this amount, $221,443,000 (unrestricted net position) may be used
to meet ongoing obligations and approximately $574,870,000 or 67% was
invested in capital assets and is not available to meet ongoing obligations.
• Governmental activities total net position increased by $35,135,000 and the
Business -Type total net position decreased by $120,000 which is attributable to
the SilverRock Golf Course.
• Governmental funds (General Fund, Housing Authority, Disaster Recovery Fund,
Capital Improvement Fund, sixteen (16) non -major special revenue funds, ten
(10) non -major capital projects funds, and one (1) non -major debt service fund)
had a combined ending fund balance of $239,820,000, an increase of
$19,852,000. The primary reasons for this increase can be attributed to taxes
exceeding the original budget projections coupled with expenditure savings and
a positive fair market value adjustment to the overall investment portfolio.
• The unassigned General Fund balance comprised $44,105,000, or 24%, of the
total $185,978,000 balance and represented 39% of total final General Fund
budgeted expenses including transfers and multi-year capital projects.
• Total governmental activities debt decreased by $254,000 from $1,957,000 to
$1,703,000.
OVERVIEW
Government -Wide Financial Statements
The government -wide financial statements provide a broad overview of the City's
finances. There are two statements — statement of net position and statement of
activities, as described below.
The statement of net position presents information on all City assets and deferred
outflows of resources as well as 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 City's
financial position 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 occurs giving rise to the
change, 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, for example, earned but unused vacation
leave.
Both of these government -wide financial statements distinguish City functions,
which are principally supported by taxes, fees, and intergovernmental revenues
(governmental activities) from other functions that are intended to recover all or
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a significant portion of their costs through user charges (business -type activities).
Governmental activities include general government, public safety, community
services, planning and development and public works; business -type activities
include the SilverRock Golf course operations.
The government -wide financial statements include not only the City of La Quinta
(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 City departments.
The government -wide financial statements are listed in the table of contents
under the Financial Section of this report.
Fund Financial Statements
A fund is a grouping of related accounts and is used to maintain control over
resources that have been segregated for specific activities or objectives. The
City, like other state and local governments, uses fund accounting to ensure
compliance with finance -related legal requirements. All City's funds are
aggregated into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of
the fiscal year. Such information may be useful in evaluating a government's
near-term financing requirements.
Because the focus is narrower than the government -wide financial statements, it
is useful to compare this information with similar information presented for
governmental activities in the government -wide financial statements. By doing so,
readers may better understand the long-term impact of the government's near-
term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains thirty-one (31) 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. There are
four (4) major governmental funds: the General Fund, the Housing Authority
special revenue fund, the Disaster Recovery special revenue fund, and the Capital
Improvement capital project fund. Data from the other twenty-seven (27)
governmental funds are combined into a single, aggregate presentation.
Individual fund data for each of these non -major governmental funds is provided
in the form of combining statements in the Combining and Individual Fund
Statements and Schedules section of the report.
6
The City adopts an annual budget for its General Fund. A budgetary comparison
schedule has been provided to demonstrate compliance with the adopted 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 are broken down into enterprise and internal service funds.
Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City maintains one (1)
enterprise fund to account for the SilverRock Golf Course operations, which is
considered a major fund.
Internal service funds are used to allocate costs among the City's various
functions. The City has four (4) internal service funds: Equipment Replacement,
Information Technology, Park Equipment and Facilities, and Insurance. Because
these four (4) 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 on the Combining and Individual Fund Statements and Schedules section
of the report.
The basic proprietary fund financial statements are listed in the table of contents under
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 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's own programs. The accounting used for fiduciary funds is much like that used
for proprietary funds.
The City reports on two fiduciary funds: 1) the Supplemental Pension Trust fund which
accounts for the Defined Contribution Pension Trust established to provide
supplemental retirement benefits for employees, and (2) Successor Agency of the
Former RDA Private -Purpose Trust Fund which provides for activities associated with
the dissolution of the former Redevelopment Agency.
The basic fiduciary fund financial statements are listed in the table of contents under
Fiduciary Funds: Statement of Net Position — Fiduciary Funds and Changes in Net
Position — Fiduciary Funds.
Notes to the Financial Statements
The notes to the financial statements provide information that is essential to obtain a
full understanding of the data provided in the government -wide and fund financial
statements. These notes are listed in the table of contents under Notes to Financial
Statements.
Other Information
In addition to the 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. The non -major
governmental funds' combining statements are presented immediately following the
Required Supplementary Information while the combined statements for the internal
service funds and agency funds are presented following the budgetary comparison
schedules for the debt service funds.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. The City's net position, the difference between assets
and liabilities and deferred inflows/outflows, is one way to measure the City's financial
health or financial position. Over time, increases or decreases in the City's net position
indicate whether its financial health is improving or deteriorating. The City's net
position increased from $823,582,00 to $858,597,000 at the close of the 2022/23,
which is $35,015,000 more than the previous year. Increases were reflected in
restricted and unrestricted net position for governmental activities.
The largest portion of the City's Net Position ($560,189,000 or 68% for 2021/22 and
$574,870,000 or 67% for 2022/23) reflects investment in capital assets (e.g., land,
buildings; machinery, and equipment), net of related debt. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for
future spending.
City of La Quinta Net Position
An additional portion of the City's net position ($62,284,000 or 7% in 2023 and
$54,412,000 or 7% in 2022) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net
position $221,443,000 (26%) may be used to meet the government's ongoing
obligations to citizens and creditors.
At the end of 2022/23, the City had positive balances in all three categories of net
position for the governmental and business -type activities.
8
Governmental Activities
2022
As Restated 2023
%
Change
Business -Type Activities
2022
As Restated 2023
%
Change
Total by Fiscal Year
2022
As Restated 2023
%
Change
Current and other assets
$ 281,978,427
$ 309,087,961
10%
$ 1,432,615
$ 1,546,130
8%
$ 283,411,042
$ 310,634,091
10%
Capital assets
517,859,684
533,177,093
3%
43,057,599
42,558,046
-1%
560,917,283
575,735,139
3%
Total Assets
799,838,111
842,265,054
5%
44,490,214
44,104,176
-1%
844,328,325
886,369,230
5%
Deferred outflows of
resources
6,456,532
19,619,118
204%
-
-
0%
6,456,532
19,619,118
204%
-
0%
Current liabilities
25,399,471
26,214,135
3%
395,781
379,823
-4%
25,795252
26,593,958
3%
Non-current liabilities
8,838,729
15,253,979
73%
565,837
315,520
0%
9,404,566
15,569,499
66%
Total Liabilities
34,238,200
41,468,114
21%
961,618
695,343
-28%
35,199,818
42,163,457
20%
Deferred inflows of resources
9,328,726
5,227,571
-44%
-
-
0%
9,328,726
5,227,571
-44%
Net Position:
Net investment in capital
assets
517,697,036
532,627,757
3%
42,491,762
42,242,526
-1%
560,188,798
574,870283
3%
Prior Period Adjustment (Net)
17,325,415
-
-100%
-
-
0%
-
-
0%
Restricted
54,412,358
62,283,620
14%
-
-
0%
54,412358
62282620
14%
Unrestricted
190,618,323
220,277,110
16%
1,036,834
1,166,307
12%
191,655,157
221443,417
16%
Total Net Position
$ 780,053,132
$ 815,188,487
5%
$ 43,528,596
$ 43,408,833
0%
$ 823,581,728
$ 858,597,320
4%
An additional portion of the City's net position ($62,284,000 or 7% in 2023 and
$54,412,000 or 7% in 2022) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net
position $221,443,000 (26%) may be used to meet the government's ongoing
obligations to citizens and creditors.
At the end of 2022/23, the City had positive balances in all three categories of net
position for the governmental and business -type activities.
8
Governmental Activities
Governmental activities net position increased by $35,135,000 accounting for a
positive 5% 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
Governmental revenues overall increased by $12,017,000 with the largest
increases being $4,840,000 in investment income, followed by $4,208,000 for fair
value of investments and $2,873,000 in property taxes.
Expenses for Governmental Activities increased by $5,807,000
(an 8% increase when compared to 2021/22). The $7,480,000 increase in General
Government reflects the additional discretionary payment made for the City's
unfunded pension obligation in 2022/23. A decrease in Planning & Development
totaling $1,570,000 was the result of reduced programs such as the Small Business
relief programs offered during the pandemic. As noted earlier Governmental
Activities include 31 individual governmental funds and include capital asset activity
allocated on a percentage basis by department. Additional information on capital
asset activity distribution can be found in Note 4.
• The General Fund contributed $600,000 to the business -type activities of the
golf course. Funds were utilized to support operations per the adjusted budget.
Business -Type Activities
This was the eighteenth full year of operations for the SilverRock Golf Resort
since the golf course opened in 2005.
Charges for services primarily consisted of green fees which totaled $4,767,000,
$88,000 higher than the previous year, with golf course expenses of $5,520,000,
which were $774,000 or approximately 16% more than the previous year.
9
Governmental Activities
2022 2023 Change
As Restated
Business -Type Activities
2022 2023 Change
As Restated
Total
2022
As Restated
by Fiscal Year
2023
Change
PROGRAM REVENUES:
Charges for Services
$ 6,883,385
$ 6,551,700
$ (331,685)
$ 4,679,163
$ 4,767,458
$ 88,295
$ 11,562,548
$ 11,319,158
$ (243,390)
Operating Grants and Contributions
5,786,773
7,136,358
1,349,585
-
-
-
5,786,773
7,136,358
1,349,585
Capital Grants and Contributions
11,952,031
8,760,788
(3,191,243)
-
-
-
11,952,031
8,760,788
(3,191,243)
GENERAL REVENUES & TRANSFERS
-
Property Taxes
17,823,858
20,697,081
2,873,223
-
-
-
17,823,858
20,697,081
2,873,223
Other Taxes
50,610,128
51,942,858
1,332,730-
-
-
50,610,128
51,942,858
1,332,730
Investment Income
219,164
5,058,717
4,839,553
4,329
12,456
8,127
223,493
5,071,173
4,847,680
Net Change in Fair Value of Investments
(5,727,183)
(1,519,171)
4,208,012
(45,279)
20,665
65,944
(5,772,462)
(1,498,506)
4,273,956
Motor Vehicle In Lieu
4,663,327
943,160
5,110,569
1,432,619
447,242
489,459-
-
-
-
-
-
4,663,327
943,160
5,110,569
1,432,619
447,242
489,459
M scelaneous
TOTAL REVENUES
93,154,643
105,171,519
12,016,876
4,638,213
4,800,579
162,366
97,792,856
109,972,098
12,179,242
EXPENSES:
General Government
9,733,224
17,213,248
7,480,024
-
-
-
9,733,224
17,213,248
7,480,024
Public Safety
25,741,782
25,457,350
(284,432)
-
-
-
25,741,782
25,457,350
(284,432)
Planning & Development
4,716,745
3,146,264
(1,570,481)
-
-
-
4,716,745
3,146,264
(1,570,481)
Community Services
8,439,863
9,550,001
1,110,138
-
-
-
8,439,863
9,550,001
1,110,138
Public Works
14,985,480
14,043,797
(941,683)
-
-
-
14,985,480
14,043,797
(941,683)
Interest on Long -Term Debt
11,914
25,504
13,590
-
-
-
11,914
25,504
13,590
Golf Course
-
-
-
4,746,281
5,520,342
774,061
4,746,281
5,520,342
774,061
TOTAL EXPENSES
63,629,008
69,436,164
5,807,156
4,746,281
5,520,342
774,061
68,375,289
74,956,506
6,581,217
Excess or Deficiency before Transfers &
Extraordinary Items
29 525 635
35 735 355
6 209 720
(108 068)
(719 763)
(611 695)
29 417 567
35 015 592
5 598 025
TRANSFERS & EXTRAORDINARY ITEMS:
Extraordinary Gain on Dissolution of RDA
609,515
-
(609,515)
-
-
-
609,515
-
(609,515)
Transfers
(550 000)
(600 000)
(50 000)
550 000
600 000
50 000
-
-
-
Increase in Net Position
29,585,150
35,135,355
5,550,205
441,932
(119,763)
(561,695)
30,027,082
35,015,592
4,988,510
Prior Period Adjustment (Net)
17,325,415
-
(17,325,415)
-
-
-
17,325,415
-
(17,325,415)
Net Position - Beginning
733,142,567
780,053,132
46,910,565
43,086,664
43,528,596
441,932
776,229,231
823,581,728
47,352,497
NET POSITION - ENDING
$ 780,053,132
$ 815,188,487
$ 35,135,355
$ 43,528,596
$ 43,408,833
$ (119,763)
$ 823,581,728
$ 858,597,320
$ 35,015,592
Governmental revenues overall increased by $12,017,000 with the largest
increases being $4,840,000 in investment income, followed by $4,208,000 for fair
value of investments and $2,873,000 in property taxes.
Expenses for Governmental Activities increased by $5,807,000
(an 8% increase when compared to 2021/22). The $7,480,000 increase in General
Government reflects the additional discretionary payment made for the City's
unfunded pension obligation in 2022/23. A decrease in Planning & Development
totaling $1,570,000 was the result of reduced programs such as the Small Business
relief programs offered during the pandemic. As noted earlier Governmental
Activities include 31 individual governmental funds and include capital asset activity
allocated on a percentage basis by department. Additional information on capital
asset activity distribution can be found in Note 4.
• The General Fund contributed $600,000 to the business -type activities of the
golf course. Funds were utilized to support operations per the adjusted budget.
Business -Type Activities
This was the eighteenth full year of operations for the SilverRock Golf Resort
since the golf course opened in 2005.
Charges for services primarily consisted of green fees which totaled $4,767,000,
$88,000 higher than the previous year, with golf course expenses of $5,520,000,
which were $774,000 or approximately 16% more than the previous year.
9
In 2022/23, the General Fund transferred $600,000 to the SilverRock Golf Fund to
support operations. After this transfer, the net position decreased by $120,000.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term
inflows, outflows, and balances. Such information is useful in assessing the City's
financing requirements. In particular, unassigned 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 2022/23, the City's governmental funds reported combined ending
fund balances as follows:
City of La Quinta Governmental Fund Balances
Category
General Fund
Percent
All Other Funds
Percent
Total Funds
Percent
Nonspendable
$ 25,130,438
14%
$ 468
0.001%
$ 25,130,906
10%
Restricted
5,317,487
3%
61,906,132
115%
67,223,619
28%
Committed
47,600,009
26%
-
0%
47,600,009
20%
Assigned
63,824,533
34%
-
0%
63,824,533
27%
Unassigned
44,105,041
24%
(8,064,140)
-15%
36,040,901
15%
TOTAL
$ 185,977,508
100%
$ 53,842,460
100%
$ 239,819,968
100%
Governmental fund balances ended the year totaling $239,820,000, an increase of
$19,852,000 in comparison with the prior years' ending balance of $219,968,000.
These collective fund balances include the General Fund, Housing Authority,
Financing Authority, Capital Improvement Fund, and various Special Revenue funds.
Nonspendable
Nonspendable fund balance totaled $25,131,000 or 10%; this represents amounts that
are not available to pay for operating expenditures because they are in the form of
land and receivables.
Restricted
Restricted fund balance totaled $67,224,000 or 28%; these amounts represent funds
with external limitations on spending. Significant restrictions include: Section 115 trust
of $5,317,000 restricted for pension liabilities; Library and Museum totaling
$11,547,000 which represents property tax increment money that can only be used
for library and museum services; Measure A funding of $4,114,000 which can only be
used for transportation; Transportation capital project fund of $5,518,000 in developer
fees that are restricted for the acquisition, construction and improvement of the City's
infrastructure; and Economic Development funding of $3,283,000 that can only be
used for future economic development in the City.
10
Committed
$47,600,000 (20%) are committed fund balances which are the result of self-imposed
limitations established by the City Council. The City adopted a Reserve Policy in May
2018 which established General Fund committed reserve categories including Natural
Disaster Reserves, Economic Disaster Reserves, Cash Flow Reserves, and Capital
Replacement Reserves. As of June 30, 2023, all of these categories are fully funded
to target levels.
Assigned
Assigned funds are constrained by the City's intent to use them for specific purposes
and represent a total of $63,825,000 (27%) of the total fund balance. $22,623,000
represents funds for approved multi-year capital projects that were not spent by the
end of the year, therefore they are carried over until the projects are completed.
Available Measure G sales tax revenue ended the year at $29,214,000 and
$11,987,000 represents funds held in trust with the County of Riverside for fire
services.
Unassigned
The remaining fund balance or $36,041,000 represents unassigned fund balances or
the residual net resources after taking into consideration the other classifications. The
Capital Improvement Fund accounted for $6,100,000 of the negative $8,064,000
balance of all other funds. The remaining negative balance was largely attributed to
the Library Development Impact Fee Fund. This amount represents an advance due
to the Redevelopment (RDA) Successor Agency and is included in the Successor
Agency of the former RDA as a receivable.
General Fund
The General Fund is the City's chief operating fund. At the end of 2022/23, the
unassigned fund balance was $44,105,000 while total fund balance was $185,978,000.
The General Fund balance increased by $20,070,000 in 2022/23. Key factors were:
• A year -over -year decrease of $2,236,000 in non -spendable is attributed the
2022/23 Redevelopment Agency loan repayment of $2,696,000 offset by
interest earnings of $381,000 resulted in a net decrease of $2,315,000 in Due
from Other Governments. The outstanding loan balance of $24,501,000 is
recognized as 80% in the General Fund and 20% in the Housing Authority
Fund.
• Restricted reserves are limited to funds held in a Section 115 Pension Trust set
aside to fund the City's pension obligations. The trust was initially established
in 2018/19 with $6,540,000 and in 2019/20 an additional $3,460,000 was
deposited. In FY 2022/23, a one-time additional discretionary payment of
$5,000,000 was made to CaIPERS to pay down the City's unfunded pension
obligations utilizing pension trust funds.
• Committed reserves increased by $10,391,000 due to operational carryovers
and due to the recent update to the City's Reserve Policy which include
increasing and funding the new target levels for the Natural Disaster
11
Emergency Reserves, Economic Downturn Reserves, and the Capital
Improvement Reserves categories.
• An increase of $6,524,000 in assigned reserves was due to Measure G sales
tax reserve ($13,859,000) and the advanced funding no longer needing to be
subsidized by the City which has been placed back in reserves and ($803,000)
in the fire services trust. Assigned to public safety represents property tax
accumulated and held in trust by the County of Riverside for fire protection,
disaster preparedness and response, fire prevention, rescue, hazardous
materials mitigation, technical rescue response, medical emergency services,
and public service assistance (the County and City negotiated an agreement
wherein the County fire service property tax revenue generated in the two
former City redevelopment project areas is pledged to the City to fund the
aforementioned services). This portion of assigned fund balance as of June 30,
2023 is $11,987,000. These increases combined with a decrease in multi-year
Capital Projects ($8,138,000) contributed to the overall increase in assigned
reserves.
Housing Authority Fund
The Housing Authority Fund is used to account for the activities of the Housing Authority;
the Housing Authority invests in programs and projects that preserve and increase the
supply of affordable housing in the City. The fund balance decreased by $496,000 to
end the year at $26,366,000.
Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures for capital
projects. The fund had forty-seven (47) active Capital Improvement Projects budgeted
during 2022/23. The five most active projects were:
• Dune Palms Bridge Improvements ($4,050,000)
• La Quinta Landscape Renovation Improvements ($2,923,000)
• Avenue 53 and Jefferson Roundabout ($2,758,000)
• Citywide Striping Refresh ($295,000)
• Highway 111 Corridor Area Plan Improvements ($285,000)
These projects, along with others, leveraged State or Federal grant funds or were
significantly supported with Measure G sales tax revenues.
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.
12
The financial activities of the City enterprise fund are addressed in the discussion of the
City's business -type activities. In addition, the City has four (4) internal service funds to
accumulate resources for equipment and vehicle replacement, information technology,
insurance, and park equipment and facility replacement.
GENERAL FUND BUDGETARY HIGHLIGHTS
Most General Fund revenues experienced positive variances when compared to the
final budget specifically related to use of money and property and tax revenues.
Revenue appropriations and transfers in increased by $17,428,000 between the original
($68,321,000) and final amended budget ($85,749,000). The category representing the
largest variances is taxes which represents 76% of all General Fund revenues.
Actuals for taxes include the three largest funding sources for the City — sales taxes
$28,888,000, transient occupancy taxes (TOT) $16,688,000, and property taxes
$11,224,000. Combined, these top three revenues account for $56,800,000 or 87% of
all taxes, resulting in a $1,864,000 increase from the prior fiscal year primarily in
property taxes and sales taxes offset by a decrease in transient occupancy taxes.
The Extraordinary Item includes $381,000 to record the annual former Redevelopment
Agency loan repayment interest earned in 2022/23. The loan repayments are
structured to pay all principal first, then interest. Each year the City records the
payment received and interest earned in accordance with the State Department of
Finance approved loan repayment schedule. Loan repayments are not budgeted;
these funds are recognized in unassigned reserves and reduce non -spendable
reserves each year. Furthermore, 80% of the extraordinary gain is recognized in the
General Fund and 20% in the Housing Authority Fund.
Expenditure appropriations and transfers out increased by $49,652,000 between the
original ($64,651,000) and final amended budget ($114,303,000) which included the
following significant change:
• $30,762,000 in operational and capital improvement project carryover
appropriations from prior fiscal years to 2022/23 as approved by City Council.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets for its governmental and business -type activities as of June
30, 2023, were $575,735,000 (net of accumulated depreciation). This includes land,
right of way, buildings and improvements, machinery and equipment, streets and
bridges, construction in progress, and the right to use leased assets. The investment
in capital assets decreased by $472,000 in 2022/23 primarily due to an increase in
construction in progress.
The following chart lists the asset categories for governmental and business -like
activities net of depreciation:
13
City of La Quinta Capital Assets (net of depreciation)
Description
Governmental Activities
2022
As Restated 2023
Business -Type Activities
2022
As Restated 2023
Total By Fiscal Year
2022
As Restated 2023
Land
$ 81,790,496
$ 83,717,732
$ 39,712,956
$ 39,712,956
$ 121,503,452
$ 123,430,688
Buildings & Inprovements
36,203,626
36,354,815
2,698,640
2,484,095
38,902,266
38,838,910
Equipment & Furniture
1,127,854
1,147,737
82,227
49,910
1,210,081
1,197,647
Vehicles
917,322
1,281,556
-
-
917,322
1,281,556
Infrastructure
394,887,936
401,770,282
-
-
394,887,936
401,770,282
Right to use Leased Assets
157,485
49,643
563,778
311,085
721,263
360,728
Right to use Subscription IT Assets
945,351
592,321
-
-
945,351
592,321
Construction in Progress
17,119,485
8,263,007
-
-
17,119,485
8,263,007
TOTAL
$ 533,149,555
$ 533,177,093
$ 43,057,601
$ 42,558,045
$ 576,207,156
$ 575,735,138
Major capital asset events under Governmental Activities included the following:
• Recording infrastructure improvements, street improvements, street right of way,
street sidewalks and curbs and gutters, traffic signals, street medians, and
construction in progress.
Business -Type Activities
The Golf Course capital asset balance at June 30, 2023, was $42,558,000, net of
accumulated depreciation. The balance decrease of $500,000 reflects accumulated
depreciation and amortization expensed in 2022/23.
Additional information on the City of La Quinta's capital assets can be found in Note 4
to the financial statements.
Long -Term Debt
At the end of 2022/23, the City governmental activities had total outstanding debt of
$1,703,000, which is $254,000 less than the previous year. Of the total amount, $53,000
represents leases and $1,154,000 in employee compensated absences.
City of La Quinta Outstanding Debt
Governmental Activities
Debt Type:
2022
As Restated 2023
Leases $ 162,648 $ 53,111
Financed Purchases 22,079 551
Compensated Absences 962,229 1,154,090
Subscription IT liabilities 810,483 495,674
TOTAL $ 1,957,439 $ 1,703,426
Additional information on long-term debt can be found in Note 5 of the financial
statements.
14
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances.
Questions concerning this information or requests for additional information should be
addressed to the City of La Quinta, Claudia Martinez, Finance Director/City Treasurer,
78-495 Calle Tampico, La Quinta, CA, 92253, by telephone at 760-777-7055, or by
email at finance@laquintaca.
15
City of La Quinta, California
Statement of Net Position
June 30, 2023
Assets
Cash and investments
Restricted cash and investments
Receivables
Accounts
Taxes
Notes and loans
Accrued interest
Leases
Prepaid costs
Deposits
Due from other governments
Inventories
Land held for resale
Net OPEB asset
Capital assets not being depreciated
Capital assets, net of depreciation
Right to use lease assets, net of
accumulated amortization
Right to use subscription IT assets, net of
accumulated amortization
Total assets
Deferred Outflows of Resources
Deferred amounts related to OPEB
Deferred amounts related to pensions
Total deferred outflows of resources
Liabilities
Accounts payable
Accrued liabilities
Unearned revenue
Deposits payable
Accrued interest
Due to other governments
Noncurrent liabilities
Due within one year
Due in more than one year
Total liabilities
Primary Government
Governmental
Activities
$ 228,672,516
5,317,487
1,650,990
7,581,730
22,494,501
5,568,153
1,432,355
379,516
47,964
30,161, 609
5,403,652
377,488
378,055,087
154,480,042
49,643
592,321
842,265,054
369,541
19,249,577
19, 619,118
6,655,971
649,254
11,468,560
6,319,068
51
1,121,231
694,575
14,559,404
41,468,114
Business -Type
Activities
$ 1,183,294
554
250,000
112,282
39,712,956
2,534,005
311,085
44,104,176
343,903
35,500
420
191,659
123,861
695,343
Total
$ 229,855,810
5,317,487
1,650,990
7,581,730
22,494,501
5,568,707
1,432,355
379,516
297,964
30,161,609
112,282
5,403,652
377,488
417,768,043
157,014,047
360,728
592,321
886,369,230
369,541
19,249,577
19, 619,118
6,999,874
649,254
11,468,560
6,354,568
471
1,121,231
886,234
14,683,265
42,163,457
See Notes to Financial Statements 16
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City of La Quinta, California
Statement of Net Position
June 30, 2023
Primary Government
Governmental Business -Type
Activities Activities
Total
Deferred Inflows of Resources
Deferred amounts related to OPEB $ 591,305 $ - $ 591,305
Deferred amounts related to pensions 3,284,647 - 3,284,647
Deferred amounts related to leases 1,351,619 - 1,351,619
Total deferred inflows of resources
5,227,571 - 5,227,571
Net Position
Net investment in capital assets 532,627,757 42,242,526 574,870,283
Restricted for
Planning and development projects 27,585,913 - 27,585,913
Public safety 1,278,307 - 1,278,307
Public works 7,535,519 - 7,535,519
Capital projects 9,794,607 - 9,794,607
Community services 15,711,786 - 15,711,786
Other 377,488 - 377,488
Unrestricted 220,277,110 1,166,307 221,443,417
Total net position
$ 815,188,487 $ 43,408,833 $ 858,597,320
See Notes to Financial Statements 17
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2023
Program Revenues
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary Government
General government $ 17,213,248 $ 1,716,965 $ 20,138 $ 272,066
Public safety 25,457,350 555,423 - 170,167
Planning and development 3,146,264 1,356,426 138,974 4,010,626
Community services 9,550,001 185,979 5,987,860 -
Public works 14,043,797 2,736,907 989,386 4,307,929
Interest on long-term debt 25,504 -
Total governmental activities
Business -Type Activities
Golf Course
69,436,164 6,551,700
5,520,342 4,767,458
7,136,358 8,760,788
Total primary government $ 74,956,506 $ 11,319,158 $ 7,136,358 $ 8,760,788
General Revenues
Taxes
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Other taxes
Motor vehicle in lieu - unrestricted
Investment income
Net change in fair value of investments
Other
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position at Beginning of Year, as restated
Net Position at End of Year
See Notes to Financial Statements 18
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2023
Net (Expense) Revenue and Changes in Net Position
Total Primary Government
Program Governmental Business -Type
Revenues Activities Activities
$ 2,009,169 $ (15,204,079)
725,590 (24,731,760)
5,506,026 2,359,762
6,173,839 (3,376,162)
8,034,222 (6,009,575)
- (25,504)
22,448,846
4,767,458
$
Total
- $ (15,204,079)
(24,731,760)
2,359,762
(3,376,162)
- (6,009,575)
- (25,504)
(46,987,318) - (46,987,318)
$ 27,216,304 (46,987,318)
(752,884) (752,884)
(752,884) (47,740,202)
20,697,081 - 20,697,081
19,262,569 - 19,262,569
28,888,079 - 28,888,079
2,375,729 - 2,375,729
489,738 - 489,738
926,743 926,743
5,110,569 - 5,110,569
5,058,717 12,456 5,071,173
(1,519,171) 20,665 (1,498,506)
1,432,619 - 1,432,619
(600,000) 600,000 -
82,122,673
35,135,355
780,053,132
633,121 82, 755, 794
(119,763) 35,015,592
43,528,596 823,581,728
$ 815,188,487 $ 43,408,833 $ 858,597,320
See Notes to Financial Statements 19
City of La Quinta, California
Balance Sheet — Governmental Funds
June 30, 2023
General
Special Capital Projects
Revenue Funds Fund Other Total
Housing Disaster Capital Governmental Governmental
Authority Recovery Improvement Funds Funds
Assets
Pooled cash and investments $ 153,479,076 $ 19,341,514 $ 9,928,036 $ - $ 34,338,192 $ 217,086,818
Restricted cash and investments 5,317,487 - - - 5,317,487
Receivables
Accounts 442,644 103,604 934,765 169,977 1,650,990
Taxes 6,946,383 - 635,347 7,581,730
Notes and loans - 22,494,501 - - 22,494,501
Accrued interest 130,076 5,388,914 8,794 30,106 5,557,890
Leases 1,432,355 - - - 1,432,355
Prepaid costs 125,993 - 468 126,461
Deposits 47,964 - 47,964
Due from other governments 20,898,192 4,900,199 2,778,080 1,585,138 30,161,609
Due from other funds 2,796,975 - - - 2,796,975
Land held for resale 5,403,652 - 5,403,652
Total assets
Liabilities, Deferred Inflows of
Resources and Fund Balances
$ 196,972,833 $ 52,276,696 $ 9,936,830 $ 3,712,845 $ 36,759,228 $ 299,658,432
Liabilities
Accounts payable $ 2,517,578 $ 68,780 $
Accrued liabilities 572,702 19,697
Unearned revenues -
Deposits payable 6,292,718 26,350
Due to other governments 2,604
Due to other funds
Total liabilities
$ 2,652,202 $ 788,168 $ 6,026,728
44,574 636,973
9,987,008 1,481,552 - 11,468,560
6,319,068
1,118,627 1,121,231
1,965,854 831,121 2,796,975
9,385,602 114,827 9,987,008 6,099,608 2,782,490 28,369,535
Deferred Inflows of Resources
Unavailable revenue 258,104 25,796,035 3,712,845 350,326 30,117,310
Leases 1,351,619 - 1,351,619
Total Deferred Inflows of Resources
1,609,723 25,796,035
3,712,845
350,326 31,468,929
See Notes to Financial Statements 20
City of La Quinta, California
Balance Sheet — Governmental Funds
June 30, 2023
General
Special Capital Projects
Revenue Funds Fund Other Total
Housing Disaster Capital Governmental Governmental
Authority Recovery Improvement Funds Funds
Fund Balances
Nonspendable
Prepaid costs $ 125,993 $ $ $ $ 468 $ 126,461
Land held for resale 5,403,652 5,403,652
Due from successor agency 19,600,793 19,600,793
Restricted for
Planning and development
projects 26,365,834 1,220,079 27,585,913
Public safety - 1,278,307 1,278,307
Community services 15,711,786 15,711,786
Public works 7,535,519 7,535,519
Capital projects - - - - 9,794,607 9,794,607
Section 115 trust 5,317,487 - - - - 5,317,487
Committed to
Natural Disaster Reserve 15,000,000 - - - - 15,000,000
Economic Downturn Reserve 13,000,000 - - - - 13,000,000
Cash Flow Reserve 5,000,000 - - - - 5,000,000
Capital Replacement Reserve 12,000,000 - 12,000,000
Carryovers 2,600,009 - - 2,600,009
Assigned for
Public safety 11,986,970 - - - 11,986,970
Sales Tax Reserve 29,214,191 - - - 29,214,191
Capital projects 22,623,372 - - - - 22,623,372
Unassigned 44,105,041 (50,178) (6,099,608) (1,914,354) 36,040,901
Total fund balance
185,977,508 26,365,834
(50,178) - (6,099,608)
33,626,412 239,819,968
Total liabilities, deferred inflows of
resources and fund balances $ 196,972,833 $ 52,276,696 $ 9,936,830 $ 3,712,845 $ 36,759,228 $ 299,658,432
See Notes to Financial Statements 21
City of La Quinta, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the statement of net position
are different because:
Fund balances of governmental funds $ 239,819,968
Capital assets net of accumulated depreciation/amortization are not financial
resources, and therefore have not been included as current financial
resources in governmental fund activity
519,153,301
Net OPEB asset is not considered a current financial resource 377,488
Long-term liabilities, including leases,
compensated absences and pension liabilities
are not due and payable in the current period and therefore are
not reported in the governmental funds:
Leases $ (16,649)
Financed purchases (551)
Compensated absences (1,154,090)
Net pension liability (13,550,553) (14,721,843)
Deferred outflows related to pensions 19,249,577
Deferred outflows related to OPEB 369,541
Deferred inflows related to pensions (3,284,647)
Deferred inflows related to OPEB (591,305)
Revenues reported as unavailable revenue in the governmental
funds are recognized in the statement of activities 30,117,310
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 are included in governmental
activities of the statement of net position
24,699,097
Net Position of Governmental Activities $ 815,188,487
See Notes to Financial Statements 22
City of La Quinta, California
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds
Year Ended June 30, 2023
Special Capital Projects
Revenue Funds Fund Other Total
Housing Disaster Capital Governmental Governmental
General Authority Recovery Improvements Funds Funds
Revenues
Taxes $ 65,146,000 $ $ $ - $ 2,121,115 $ 67,267,115
Assessments - - - - 981,315 981,315
Licenses and permits 3,994,989 - - - 3,994,989
Intergovernmental 9,989,061 - 391,120 5,973,761 16,353,942
Charges for services 1,558,784 - - - - 1,558,784
Investment income (loss) 3,282,418 1,782,543 208,625 747,080 6,020,666
Net decrease in fair value of
investments (893,437) (88,316) (161,695) - (284,853) (1,428,301)
Fines and forfeitures 563,494 - 563,494
Developer participation 420 4,215,701 4,216,121
Miscellaneous 2,479,742 96,405 - - 26,101 2,602,248
Total revenues 86,121,051 1,790,632 46,930 391,540 13,780,220 102,130,373
Expenditures
Current
General government 20,966,498
Public safety 25,362,426
Planning and development 4,303,714
Community services 5,782,682
Public works 2,148,743
Capital outlay 536,087
Debt service
Principal 10,764
Interest -
Total expenditures
1,830,275
254,998
201,409
59,110,914 2,286,682
907 20,967,405
94,924 25,457,350
33,757 335,345 6,503,091
2,025,777 8,063,457
4,321,870 6,470,613
13,394,469 48,347 14,180,312
13,428,226
10,764
25,504 25,504
6,852,674 81,678,496
Excess (Deficiency) of Revenues
over (under) Expenditures 27,010,137 (496,050) 46,930 (13,036,686) 6,927,546 20,451,877
Other Financing Sources (Uses)
Transfers in 7,927,550 2,152,000 10,079,550
Transfers out (6,939,642) - - - (3,739,908) (10,679,550)
Total other financing
sources (uses) (6,939,642) - - 7,927,550 (1,587,908) (600,000)
Net Changes in Fund Balances 20,070,495 (496,050) 46,930 (5,109,136) 5,339,638 19,851,877
Fund Balances, Beginning of Year, As Restated 165,907,013 26,861,884 (97,108) (990,472) 28,286,774 219,968,091
Fund Balances, End of Year $ 185,977,508 $ 26,365,834 $ (50,178) $ (6,099,608) $ 33,626,412 $ 239,819,968
See Notes to Financial Statements 23
City of La Quinta, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities
Year Ended June 30, 2023
Amounts reported for governmental activities in the statement of activities
are different because:
Net changes in fund balances - total governmental funds $ 19,851,877
Governmental funds report capital projects (outlays) as expenditures.
However, in the statement of activities, the costs of those assets
are allocated over their estimated useful lives as depreciation and
amortization expense. This is the amount by which capital outlays
exceeded depreciation in the current period.
Purchase of capital assets recorded in governmental funds $ 14,180,312
Capital outlay recorded in governmental funds that
is attributed to repairs and maintenance projects that do
not increase the service life or capacity of a capital asset (4,911,083)
Depreciation and Amortization Expense,
net of adjustments for deletions (8,926,070) 343,159
Debt service payments for principal payments are reported as
expenditures in the governmental funds, but are not reported as
expenses in the statement of activities
Lease principal payments 10,764
Financed purchases payments 21,528
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.
Governmental funds report OPEB contributions as expenditures.
However, in the Statement of Activities, OPEB expense is measured
as the change in OPEB liability and the amortization of deferred
outflows and inflows of resources related to OPEB. This amount
represents the net change in OPEB related amounts.
Governmental funds report pension contributions as expenditures.
However, in the Statement of Activities, pension expense is measured
as the change in pension liability and the amortization of deferred
outflows and inflows of resources related to pension. This amount
represents the net change in pension related amounts.
Revenues reported as unavailable revenue in the governmental
funds are recognized as operating contributions and grants
in the statement of activities.
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.
(191,861)
(12,394)
11,526,881
2,482,251
1,103,150
Change in net position of governmental activities $ 35,135,355
See Notes to Financial Statements 24
City of La Quinta, California
Statement of Net Position — Proprietary Funds
June 30, 2023
Assets
Current
Pooled cash and investments
Receivables
Accrued interest
Prepaid costs
Deposits
Inventories
Total current assets
Noncurrent
Capital assets not being depreciated
Capital assets, net of depreciation
Right to use lease assets, net of accumulated amortization
Right to use subscription IT assets, net of accumulated amortization
Total noncurrent assets
Total assets
Liabilities and Net Position
Liabilities
Current
Accounts payable
Accrued liabilities
Deposits payable
Accrued interest
Current portion of lease liability
Current portion of subscription IT liability
Total current liabilities
Noncurrent
Long-term portion of lease liability
Long-term portion of subscription IT liability
Total noncurrent liabilities
Total liabilities
Net Position
Net investment in capital assets
Unrestricted
Total net position
Total liabilities and net position
Business -Type
Activities
Enterprise Funds
Golf Course
$ 1,183,294
554
250,000
112,282
1,546,130
39,712,956
2,534,005
311,085
42,558,046
44,104,176
343,903
35,500
420
191,659
571,482
123,861
123,861
695,343
42,242,526
1,166,307
43,408,833
$ 44,104,176
Governmental
Activities
Internal Service
Funds
$ 11,585,698
10,263
253,055
11,849,016
5,904,644
7,493,719
33,108
592,321
14,023,792
25,872,808
629,243
12,281
51
31,159
352,117
1,024,851
5,303
143,557
148,860
1,173, 711
13,491,656
11,207,441
24,699,097
$ 25,872,808
See Notes to Financial Statements 25
City of La Quinta, California
Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds
Year Ended June 30, 2023
Operating Revenues
Sales and service charges
Total operating revenues
Operating Expenses
Administration and general
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation and amortization expense
Other
Total operating expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Investment income
Net change in fair value of
investments
Miscellaneous revenues
Gain on disposal of capital assets
Interest expense
Total nonoperating revenues (expenses)
Income (Loss) Before Transfers
Transfers in
Total transfers
Changes in Net Position
Net Position, Beginning of the Year, as restated
Net Position at End of Year
Business -Type
Activities
Enterprise Funds
Golf Course
$ 4,767,458
4,767,458
170,828
6,676
4,602,361
499,555
240,922
5,520,342
(752,884)
12,456
20,665
33,121
(719,763)
600,000
600,000
(119,763)
43,528,596
$ 43,408,833
Governmental
Activities -
Internal
Service Funds
$ 5,397,132
5,397,132
232,217
138,412
392,721
1,319,083
1,211,891
1,558,551
4,852,875
544,257
229,187
(90,871)
208,148
234,172
(21,743)
558,893
1,103,150
1,103,150
23,595,947
$ 24,699,097
See Notes to Financial Statements 26
City of La Quinta, California
Statement of Cash Flows — Proprietary Funds
Year Ended June 30, 2023
Operating Activities
Cash received from customers and users
Cash received from interfund services provided
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net Cash from Operating Activities
Non -Capital Financing Activities
Cash transfers in
Capital and Financing Activities
Cash paid for lease liability- principal portion
Cash paid for lease liability- interest portion
Capital contributions
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Cash paid for subscription liability- principal portion
Cash paid for subscription liability- interest portion
Net Cash used for Capital and Related Financing Activities
Investing activities
Investment income
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Business -Type
Activities -
Enterprise Funds
Golf Course
$ 4,727,503
(4,865,565)
(170,828)
(308,890)
600,000
(250,317)
(352)
(250,669)
32,901
73,342
1,109,952
$ 1,183,294
Governmental
Activities -
Internal
Service Funds
$
5,397,132
(2,842,904)
2,554,228
(98,773)
(1,371)
208,148
(1,126,503)
234,172
(431,239)
(9,848)
(1,225,414)
123,751
1,452,565
10,133,133
$ 11,585,698
See Notes to Financial Statements 27
City of La Quinta, California
Statement of Cash Flows — Proprietary Funds
Year Ended June 30, 2023
Reconciliation of Operating (Loss) to Net Cash
used for Operating Income
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities:
Depreciation and amortization
Changes in
Inventories
Prepaid costs
Accounts payable
Accrued liabilities
Net Cash from Operating Activities
Non Cash Capital and Related Financing Activities
Subscription liability for the acquisition of a right to use
subscription IT asset
Business -Type
Activities -
Enterprise Funds
Golf Course
$ (752,884)
499,555
(39,955)
(15,606)
Governmental
Activities -
Internal
Service Funds
$ 544,257
1,558,551
(23,533)
464,088
10,865
$ (308,890) $ 2,554,228
$
$ 116,430
See Notes to Financial Statements 28
City of La Quinta, California
Statement of Fiduciary Net Position
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts
Accrued interest
Prepaid costs
Due from other governments
Restricted assets
Cash and investments with fiscal agent
Total assets
Pension Trust Private -Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan former RDA
$
78,261 $ 15,570,390
23
69 170
283,042
1,118,627
1,549
78,330 16,973,801
Deferred Outflows of Resources
Deferred charge on refunding 14,641,514
Total deferred outflows of resources 14,641,514
Liabilities
Accrued interest 1,053,666
Long-term liabilities
Due in one year 16,692,076
Due in more than one year 168,753,382
Total liabilities 186,499,124
Net Position (Deficit)
Restricted for pensions $ 78,330
Held in trust
$ (154,883,809)
See Notes to Financial Statements 29
City of La Quinta, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2023
Pension Trust Private -Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan Former RDA
Additions
Taxes $ - $ 20,124,588
Investment income 1,580 35,605
Net change in fair value of
investments (253) 28,282
Other revenues 5,000
Total additions
Deductions
Administrative expenses
Interest and fiscal charges
6,327 20,188,475
12,833
30,864
6,105,657
Total deductions 12,833 6,136,521
Changes in Net Position (6,506) 14,051,954
Net Position/(Deficit) - Beginning of the Year, as restated 84,836 (168,935,763)
Net Position/(Deficit) - End of the Year $ 78,330 $ (154,883,809)
See Notes to Financial Statements 30
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 1- Summary of Significant Accounting Policies
Reporting Entity
The City of La Quinta, California (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
City and its component units, which are entities for which the City 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 City'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 Redevelopment Agency (now
Successor 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 and the management of the City has operational responsibility for the Financing
Authority. The activities of the Financing Authority are recorded in the debt service fund. Separate financial
statements of the Financing Authority are not prepared.
31
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
City of La Quinta Housing Authority
The La Quinta Housing Authority (Housing Authority) was established pursuant to California Housing Authorities
Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009. The purpose of the Housing
Authority is to provide safe and sanitary housing opportunities for La Quinta residents. Although the Housing
Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the
governing board of the Housing Authority and the management of the City has operational responsibility for the
Housing Authority. The activities of the Housing Authority are recorded in the Housing Authority Special
Revenue Fund. Separate financial statements of the Housing Authority are not prepared.
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 City'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.
32
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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 proprietary funds. Fiduciary statements include
financial information for fiduciary funds. Fiduciary funds of the city primarily represent assets held by the City in
a custodial capacity for other individuals or organizations.
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.
The government -wide financial statements are reported using the economic resources measurement focus and
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred regardless of the related cash flows. Property taxes are recognized in the year they are levied. Grants
and similar items are recognized as soon as all eligibility requirements imposed by the providers are met.
Governmental Funds
In the fund financial statements, governmental funds are presented using the current resources focus and
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. Government -mandated and voluntary non-
exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
33
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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.
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.
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 another financing source. Amounts paid to reduce long-term
indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as
expenditures.
34
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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.
Fiduciary Funds
The pension and private -purpose trust funds are reported using the economic resources measurement focus and
the accrual basis of accounting.
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, and Community Services.
Housing Authority — This fund accounts for the combined housing activities of the Housing Authority in Project
Areas 1 and 2 which promotes and provides for quality housing. Revenues will be provided from the receipts and
collections of rents, notes and loans. All monies in the Housing Authority must be used in accordance with the
applicable housing -related provisions of the California Housing Authorities Law.
Disaster Recovery Fund — To account for the use of one-time federal funding designed to deliver relief to
American workers and aid in economic recovery in the wake of COVID-19. This Act was passed by Congress in
2021, to provide Coronavirus fiscal recovery funds to state and local governments.
Capital Improvement Fund — This capital projects fund is used to account for the planning, design and
construction of various capital projects throughout the City.
The City's major proprietary fund is as follows:
Golf Course — This fund accounts for the activities of the SilverRock Golf Resort.
Other fund types of the City are as follows:
Special Revenue Funds — These funds account for the proceeds of specific revenue sources that are restricted or
committed to expenditures for specified purposes other than debt service or capital projects.
Capital Projects Funds — These funds account for financial resources that are restricted, committed, or assigned
to expenditures for capital outlay.
35
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Debt Service Fund — This fund accounts for the servicing of long-term debt.
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 and operated park equipment and facilities. Costs are reimbursed by the benefiting departments.
Insurance Fund —This fund accounts for City-wide insurances: liability, property, earthquake, workers
compensation and risk management. Expenses are shared among departments on an allocation basis.
Fiduciary Funds
Pension Trust Fund — This fund accounts for the activities of the Supplemental Pension Savings Plan, which
accumulates resources for pension benefit payments to qualified government employees.
Private -Purpose Trust Fund — This fund accounts for the assets and liabilities of the Successor Agency to the
Former Redevelopment Agency and its allocated revenue to pay estimated installment payments of enforceable
obligations until obligations of the Former Agency are paid in full and assets have been liquidated.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity
Cash and 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.
The City pools cash and investments of all funds, except for assets held within the Section 115 trust and amounts
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 month end cash and investment balance.
36
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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 City's cash and investment pool. 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.
Lease Receivable
Lease receivable is recorded by the City as the present value of future lease payments expected to be received
from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease
receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting
period. The present value of future lease payments to be received are discounted based on the interest rate the
City charges the lessee.
Restricted Section 115 Trust Cash and Investments
All assets in the Section 115 Trust are irrevocably dedicated to funding obligations of the City's pension
beneficiaries, other post -employment beneficiaries or costs of administering the Trust. The funds are not
considered plan assets of either the pension plan or OPEB plan and are therefore considered restricted assets of
the City.
Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption method of
accounting for inventories.
Prepaid Costs
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
acquisition 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.
37
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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:
Building and improvements 10-30 years
Equipment and furniture 3-20 years
Vehicles 5-10 years
Infrastructure 10-50 years
Software 5-10 years
Right to use leased asset Shorter of useful life or lease term
Right to use lease assets are recognized at the lease commencement date and represent the City's right to use
an underlying asset for the lease term. Right to use leased assets are measured at the initial value of the lease
liability plus any payments made to the lessor before commencement of the lease term, less any lease
incentives received from the lessor at or before the commencement of the lease term, plus any initial direct
costs necessary to please the lease asset into service. Right to use leased assets are amortized over the shorter
of the lease term or useful lives of the underlying asset using the straight-line method. The amortization period
varies from 3 to 5 years.
Right to use subscription IT assets are recognized at the subscription commencement date and represent the
City's right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are
measured at the initial value of the subscription liability plus any payments made to the vendor at the
commencement of the subscription term, less any subscription incentives received from the vendor at or before
the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to
place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the
subscription term or useful life of the underlying asset using the straight line method. The amortization period
varies from 3 to 5 years.
Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 percent 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 sixty days after year-end.
Lien date
Levy date
Due dates
Collection dates
January 1
July 1
November 1 and February 1
December 10 and April 10
38
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Deferred Outflows/Inflows of Resources
In addition to assets, the statements of net position and the 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 assets that applies to a future period(s) and so
will not be recognized as an outflow of resources (expense/expenditure) until then. Governmental activities
recorded deferred outflows of resources related to pensions and other post -employment benefits. See Notes 9
and 11 for more information about deferred outflows of pensions and post -employment benefits, respectively.
The Private Purpose Trust Fund- Successor Agency of the former RDA recorded deferred outflows of resources
related to debt refundings. See Note 19 for more information on the deferred outflows of resources related to
debt refundings.
In addition to liabilities, the statements of net 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 assets that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time.
The City has reported two items on the governmental fund balance sheet that qualify for reporting in this
category. The first is unavailable revenues that were not received within the City's availability period. These
amounts are deferred and recognized as inflows of resources in the period that the amounts become available.
At the government -wide statements, this item is eliminated and recognized as revenue in the period earned
since "availability" of resources is not a criteria used in government -wide statements. The second item is a
deferred inflow related to leases where the City is the lessor. The deferred inflows of resources related to leases
is recognized on a straight line basis as an inflow of resources (revenue) over the term of the lease. Additionally,
governmental activities recorded deferred inflows of resources related to pensions and OPEB. See Notes 9 and
11 for more information about deferred inflows of pensions and post -employment benefits, respectively.
Compensated Absences
Vacation and sick time are vested on a percentage based on number of years employed at the City. Maximum
accumulation of sick and vacation is 40 and 60 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 percent of the value of his unused sick leave. The percentage increases by 25
percent for each five-year period until the employee is entitled to 100 percent of the value of their unused sick
leave. This will occur upon the completion of twenty years of continuous employment. The General Fund
resources are used to pay for the accumulated benefits to employees.
Long -Term Obligations
In the government -wide financial statements and proprietary fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business -type
activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount.
39
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
Lease liabilities represent the City's obligation to make lease payments arising from the lease. Lease liabilities
are recognized at the lease commencement date based on the present value of future lease payments expected
to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate
determined by the City.
Subscription liabilities represent the City's obligation to make subscription payments arising from the
subscription contract. Subscription liabilities are recognized at the subscription commencement date based on
the present value of future subscription payments expected to be made during the subscription term. The
present value of subscription payments is discounted based on a borrowing rate determined by the City.
Fund Balance
In the fund financial statements, governmental funds report the following fund balance classifications:
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 City'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 a resolution.
Assigned includes amounts that are constrained by the City'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.
Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific
purposes. The general fund is the only fund that reports a positive unassigned fund balance.
40
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Fund Balance Flow Assumptions — governmental fund financial statements
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources
(the total of committed, assigned, and 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 — government -wide and proprietary fund financial statements
Sometimes the City 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.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, and deferred outflows/inflows of resources and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estimates.
New Accounting Pronouncements
Adopted in the Current Year
GASB Statement No. 91— In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and
eliminate diversity in practice. The Statement is effective for reporting periods beginning after December 15,
2021, or FY 2022/2023. The City has determined that this Statement does not have a material effect on the
financial statements.
GASB Statement No. 94— In March 2020, the GASB issued Statement No. 94, Public -Private and Public -Public
Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial
reporting by addressing issues related to public-private and public -public partnership arrangements (PPPs). The
Statement is effective for reporting periods beginning after June 15, 2022, or FY 2022/2023. The City has
determined that this Statement does not have a material effect on the financial statements.
41
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
GASB Statement No. 96 – As of July 1, 2022, the City adopted GASB Statement No. 96, Subscription -Based
Information Technology Arrangements (SBITAs). The implementation of this standard establishes that a SBITA
results in a right to use subscription IT asset -an intangible asset - and a corresponding liability. The standard
provides the capitalization criteria for outlays other than subscription payments, including implementation costs
of a SBITA. The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously
were recognized as outflows of resources based on the payment provisions of the contract. As a result of
implementing this standard the City recognized a right to use subscription asset and subscription liability of
$945,351 and $810,483 as of July 1, 2022, respectively. As a result of these adjustments there was no effect on
beginning net position. The additional disclosures required by this standard are included in Notes 4, 5 and 18.
Effective in Future Fiscal Years
The City is currently evaluating the potential impact of the following issued, but not yet effective, accounting
standards.
GASB Statement No. 99 – In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this
Statement are to enhance comparability in accounting and reporting and to improve the consistency of
authoritative literature by addressing (1) practice issues that have been identified during implementation and
application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The
requirements of this Statement related to extension of the use of the London Interbank Offered Rate (LIBOR),
accounting for Supplemental Nutrition Assistance Program (SNAP) distributions, disclosures of nonmonetary
transactions, pledges of future revenues by pledging governments, clarification of certain provisions in
Statement No. 34, as amended, and terminology updates related to Statements No. 53 and No. 63 are effective
upon issuance. The requirements of this Statement related to leases, Public -Private and Public -Public
Partnerships (PPPs), and Subscription -Based Information Technology Arrangements (SBITAs) are effective for
fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements of this
Statement related to financial guarantees and the classification and reporting of derivative instruments within
the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023, and all reporting
periods thereafter. The City has not determined the effect on the financial statements.
GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error
Corrections—An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance
accounting and financial reporting requirements for accounting changes and error corrections to provide more
understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing
accountability. The requirements of this Statement are effective for accounting changes and error corrections
made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The City has not
determined the effect on the financial statements.
GASB Statement No. 101– In June 2022, the GASB issued Statement No. 101, Compensated Absences. The
objective of this Statement is to better meet the information needs of financial statement users by updating the
recognition and measurement guidance for compensated absences. That objective is achieved by aligning the
recognition and measurement guidance under a unified model and by amending certain previously required
disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023,
and all reporting periods thereafter. The City has not determined the effect on the financial statements.
42
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
GASB Statement No. 102 — In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The
objective of this Statement is to provide users of government financial statements with essential information
about risks related to a state or local government's vulnerabilities due to the variety of risks they face. The
requirements of this Statement are effective for fiscal years beginning after June 15, 2024. The City has not
determined the effect on the financial statements.
GASB Statement No. 103 — In April 2024, the GASB issued Statement No. 103, Financial Reporting Model
Improvements. The objective of this statement is to improve key components of the financial reporting model to
enhance its effectiveness in providing information that is essential for decision making and assessing a
government's accountability. The requirements of this Statement are effective for fiscal years beginning after
June 15, 2025. The City has not determined the effect on the financial statements.
Note 2 - Cash and Investments
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments $ 229,855,810
Restricted cash and investments 5,317,487
Statement of Fiduciary Net Position
Cash and investments 15,648,651
Cash and investments with fiscal agent 1,549
Total cash and investments $ 250,823,497
Cash and investment as of June 30, 2023, consist of the following:
Cash on hand $ 4,300
Deposits with financial institutions 7,502,528
Investments 243,316,669
Total cash and investments $ 250,823,497
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the California Government Code and the
City's investment policy. The table also identifies certain provisions of the California Government Code (or the
City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of
credit risk.
43
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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.
Investment Types
Maximum
Maximum Percentage Maximum
Maturity Allowed Investment
U.S. Treasury Obligations 5 years N/A N/A
U.S. Agency Securities 5 years N/A 20 million
Local Agency Bonds 5 years N/A N/A
California Local Agency Obligations 5 years N/A N/A
Commercial Paper 270 days 25% 10% of any outstanding issue
Certificates of Deposit 5 years 30% 250,000
Negotiable Certificates of Deposits 5 years 30% 250,000
Corporate Notes 5 years 30% 5 million
Investment Pools (Riverside County Pool) N/A N/A N/A
Money Market Mutual Funds N/A 20% 10% of City funds
Local Agency Investment Fund (LAIF) N/A N/A LAIF Limit
Investment Agreements 92 days 20% N/A
Investments Authorized by the City Section 115 Trust
Investments of the Trust are governed by the provisions of the City of La Quinta Section 115 Trust Agreement,
rather than the general provisions of the California Government Code or the City's investment policy.
Investments authorized for funds held in the Section 115 Trust include Equity and Fixed Income Mutual Funds.
The strategic range allowed for Equity and Fixed Income Mutual Funds is 20%-40% and 50%-80%, respectively.
There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity
of an investments.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates.
One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short
term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is
maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
44
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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:
Remaining Maturity (in Years)
1 year
Investment Type Total Or Less 1 to 3 years 3 to 5 years
Certificates of Deposit $ 37,410,002 $ 8,717,090 $ 14,241,426 $ 14,451,486
Federal agency securities
Federal Farm Credit Bank 15,091,193 3,196,153 3,774,480 8,120,560
Federal National Mortgage Association 10,480,400 2,983,260 7,497,140 -
Federal Home Loan Mortgage Corp 6,770,671 - 4,465,036 2,305,635
Federal Home Loan Bank 13,430,583 1,481,695 5,771,560 6,177,328
U.S. Treasury Notes 56,460,543 32,023,160 9,901,508 14,535,875
Corporate Notes 1,811,650 398,820 446,340 966,490
Local Agency Investment Fund 35,567,034 35,567,034
CAMP 49,242,190 49,242,190
Riverside County Pool 11,986,970 11,986,970 -
Section 115 Trust
Equity Mutual Funds 1,565,315 1,565,315
Fixed Income Mutual Funds 3,498,569 3,498,569
Held by Fiscal Agent
Money Market Mutual Funds 1,549 1,549 - -
Total $ 243,316,669 $ 150,661,805 $ 46,097,490 $ 46,557,374
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 and money market mutual
funds to those rated the highest rating as rated by Moody's or Standard and Poor's (S&P). Presented below are
the S&P ratings as of year-end:
Investment Type Total AAA AA+ AA AA -
Federal Agency Securities $ 45,772,847 $ $ 45,772,847 $ $
Corporate Notes 1,811,650 845,160 - 966,490
CAMP 49,242,190 49,242,190 -
Total 96,826,687 $ 50,087,350 $ 45,772,847 $ 966,490 $ -
Exempt from Credit Risk disclosure:
U.S. Treasury Notes 56,460,543
Not rated:
Certificates of Deposit 37,410,002
Local Agency Investment Pool 35,567,034
Riverside County Pool 11,986,970
Section 115 Trust:
Equity Mutual Funds 1,565,315
Fixed Income Mutual Funds 3,498,569
Held by Fiscal Agent:
Money Market Mutual Funds 1,549
Total investments $ 243,316,669
45
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Concentration of Credit Risk
Investments in any one issuer that represent 5 percent or more of total City's investments are as follows:
Reported Percent of
Issuer Investment Type Amount Portfolio
Federal Farm Credit Bank Federal Agency Securities $ 15,091,193
Federal Home Loan Bank Federal Agency Securities 13,430,583
Custodial Credit Risk
6%
6%
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 City utilizes
delivery versus payment for investment purchases, which requires investments to be received prior to delivery
of cash payment. The California Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the
following provision for deposits: The California Government Code requires that a financial institution secure
deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by
a depository regulated under state law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110 percent 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 percent of the secured public deposits, or by letters of credit issued
by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured public deposits.
As a public funds depository Bank of the West maintains a public funds deposit collateralization program that is
designed to comply with all applicable statutes and regulations governing public funds deposits, including pledge
and perfection of collateral. Accounts holding public funds are labeled as such and trigger collateralization.
Collateral needs are met based on the prior day close of business. However, same-day collateral requests may
be accommodated upon request.
Investment in Riverside County Pool
The City is a voluntary participant in the Riverside County Pooled Investment Fund that is regulated by California
Government Code Section 53646 and managed by the Riverside County Treasurer. The City's investment in this
pool is reported in the accompanying financial statements of net position and prepared using the accrual basis
of accounting. Investments are reported at fair value. The balance available for withdrawal is based on the
accounting records maintained by the County. The Riverside County Pooled Investment Fund is not registered
with the Securities and Exchange Commission and is not rated.
46
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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. Deposits and withdrawals are made on the basis of $1 and not
fair value. Accordingly, the City's measurement of fair value of its investment with LAIF is based on
uncategorized inputs, not defined as a level 1, level 2, or level 3 input. LAIF is not registered with the Securities
and Exchange Commission and is not rated.
Investment in California Asset Management Program
The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the
California Government Code Section 53601 (p) and managed by a Board of Trustees comprised of finance
directors and treasurers of California public agencies that are members of the Joint Powers Authority. The City's
investment in this pool is reported in the accompanying financial statements of net position and prepared using
the accrual basis of accounting. Investments are reported at fair value. The balance available for withdrawal is
based on the accounting records maintained by CAMP. CAMP is not registered with the Securities and Exchange
Commission.
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2
are valued using the market approach and quoted market prices.
47
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
The City has the following recurring fair value measurements as of June 30, 2023:
Total
Level 1 Level 2
Investments
U.S. Treasury Notes $ 56,460,543 $ 56,460,543 $
Federal Agency Securities 45,772,847 - 45,772,847
Corporate Notes 1,811,650 - 1,811,650
Certificates of Deposit 37,410,002 - 37,410,002
Section 115 Trust
Equity Mutual Funds 1,565,315 1,565,315 -
Fixed Income Mutual Funds 3,498,569 3,498,569 -
Total leveled investments 146,518,926 $ 61,524,427 $ 84,994,499
Investments with uncategorized inputs
Local Agency Investment Fund 35,567,034
CAMP 49, 242,190
Riverside County Pool 11,986,970
Held by Fiscal Agent
Money Market Mutual Funds 1,549
Total investments $ 243,316,669
Note 3 - Notes Receivable
In September 1994, the former redevelopment agency sold certain real property to LINC Housing for
$2,112,847. The property was used to construct single-family homes and rental units to increase the City's
supply of low- and moderate -income housing. The note bears interest at 6 percent per annum and is due in full
on June 15, 2029. On February 1, 2012, this receivable was transferred to the Housing Authority, which took
over the housing function of the former redevelopment agency upon dissolution. As of June 30, 2023, the
outstanding principal balance is $2,035,388 and the outstanding interest is $3,376,529.
In February 2011, the former redevelopment 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 redevelopment 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 percent.
Principal and interest will be repaid on or before May 1st 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 which took over the housing function of the former redevelopment agency upon dissolution. As of
June 30, 2023, the outstanding principal balance is $20,437,816 and the outstanding interest balance is
$1,981,691.
Other notes receivable as of February 1, 2012, included in the Housing Authority which took over the housing
function of the former redevelopment agency upon dissolution totaled $21,297 and the outstanding interest
balance is $13,902 at June 30, 2023.
48
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 4 - Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2023, is as follows:
Balance at
July 01, 2022 Balance at
As Restated Additions Deletions Transfers June 30, 2023
Governmental activities
Capital assets, not being depreciated
Land $ 81,790,496 $ 1,087,236 $ - $ 840,000 83,717,732
Right of way 285,857,353 - 216,995 286,074,348
Construction -in -progress 17,119,485 8,132,282 (16,988,760) 8,263,007
Total capital assets,
not being depreciated 384,767,334 9,219,518 - (15,931,765) 378,055,087
Capital assets, being depreciated
Buildings and improvements 78,616,231 207,433 35,056 2,624,883 81,413,491
Equipment and furniture 3,302,956 254,824 - 44,601 3,602,381
Vehicles 1,905,669 680,642 320,216 - 2,266,095
Infrastructure 255,013,181 48,220 - 13,262,281 268,323,682
Total capital assets,
being depreciated
338,838,037 1,191,119
355,272 15,931,765 355,605,649
Less accumulated depreciation for
Buildings and improvements 42,412,605 2,666,228 20,157 45,058,676
Equipment and furniture 2,175,102 279,542 2,454,644
Vehicles 988,347 316,408 320,216 - 984,539
Infrastructure 145,982,598 6,645,150 - - 152,627,748
Total accumulated depreciation
Total capital assets,
being depreciated, net
191,558,652 9,907,328 340,373 201,125,607
147,279,385 (8,716,209)
14,899 15,931,765 154,480, 042
Right to use lease assets, being amortized
Building 78,226
Equipment 38,118
Vehicles 179,597
57,639
78,226
38,118
121,958
Total right to use lease assets,
being amortized 295,941 - 57,639 238,302
Less Accumulated Amortization for
Building 33,681 33,682
Equipment 10,791 10,791
Vehicles 93,984 63,369
Total Accumulated amortization
Total right to use lease assets,
being amortized, net
Right to use subscription IT assets, being amortized
Less accumulated amortization
Net right to use subscription IT assets
Total Governmental Activitites
57,639
67,363
21,582
99,714
138,456 107,842
57,639 - 188,659
157,485 (107,842) 49,643
945,351 116,430 1,061,781
469,460 - - 469,460
945,351 (353,030) - - 592,321
$ 533,149,555 $ 42,437 $ 14,899 $ - $ 533,177,093
49
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Depreciation and amortization expense was charged to the following functions in the Statement of Activities:
General governments $ 481,271
Planning and development 24,630
Community services 1,543,484
Public works 6,876,694
Internal service funds 1,558,551
$ 10,484,630
Capital asset activity for business -type activities for the year ended June 30, 2023, is as follows:
Balance at Balance at
July 01, 2022 Additions Deletions June 30, 2023
Business -Type activities
Capital assets, not being
depreciated
Land $ 39,712,956 $ - $ - $ 39,712,956
Capital assets, being depreciated
Buildings and improvements 6,636,465 - 6,636,465
Equipment and furniture 1,670,293 - 1,670,293
Software 20,255 - 20,255
Total capital assets,
being depreciated
8,327,013 - 8,327,013
Less accumulated depreciation for
Buildings and improvements 3,937,825 214,545 4,152,370
Equipment and furniture 1,588,066 32,317 1,620,383
Software 20,255 - 20,255
Total accumulated
depreciation
Total capital assets,
being depreciated, net
5,546,146
246,862 - 5,793,008
2,780,867
(246,862) 2,534,005
Right to use lease assets, being amortized
Equipment 796,621 - - 796,621
Less Accumulated Amortization for
Equipment
Total right to use lease assets,
being amortized, net
Total Business -Type Activities
232,843 252,693 485,536
563,778 (252,693) 311,085
$ 43,057,601 $ (499,555) $ - $ 42,558,046
Depreciation and amortization expense was charged to the following functions in the Statement of Activities:
Golf Course $ 499,555
50
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 5 - Changes in Long -Term Liabilities
The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended
June 30, 2023:
Balance at
July 01, 2022
as, restated
Governmental Activities
Compensated absences payable $
Leases
Financed purchases
Subscription IT liabilities
962,229
162,648
22,079
810,483
Balance Due within
Additions Deletions June 30, 2023 One year
$ 1,154,091 $ 962,230
109,537
21,528
116,430 431,239
$ 1,154,090
53,111
551
495,674
$ 1,957,439 $ 1,270,521 $ 1,524,534 $
Compensated absences have been typically liquidated from the General Fund.
Leases
$ 299,718
42,189
551
352,117
1,703,426 $ 694,575
The City has entered into multiple lease agreements for buildings, vehicles, and equipment. The City is required
to make principal and interest payments through 2025. The lease agreements have interest rates between 1.5%
to 4% based on the City's estimated incremental borrowing rate at the inception of the lease. As of June 30,
2023, the net right to use asset balance is $49,643 and the lease liability balance is $53,111. The current year
amortization and interest expense associated with the lease activities was $107,841 and $1,773.
Remaining principal and interest payments on the leases are as follows:
Year Ending June 30,
2024
2025
Financed Purchases
Principal Interest
$ 42,189
10,922
$ 506
78
$ 584
The City has entered into agreements for the purchase of copiers purchased under financing leases. Such leases
require annual payments of principal and interest, with interest rates ranging from 8.47% to 9.5%, and will be
fully amortized by the year 2024.
Payments under financed purchases at June 30, 2023 are:
Year Ending June 30,
2024
Principal Interest
$ 551 $
$ 551 $
51
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Subscription IT Liabilities
The City has entered into several Subscription -Based Information Technology Arrangements (SBITAs) for virtual
permitting software, employee hiring subscription, website design & implementation software, HR and finance
software, and Microsoft office software. The City is required to make principal and interest payments through
June 2027. The subscription liability was valued using discount rates between 3.87% and 4.14% based on the
City incremental borrowing rate at the inception of the subscriptions.
Principal and interest payments on the SBITAs are as follows:
Year Ending June 30,
Principal Interest
2024 $ 352,117 $ 10,759
2025 55,248 4,783
2026 43,292 3,109
2027 45,017 1,369
$ 495,674 $ 20,020
The following is a summary of changes in business -type activities long-term liabilities of the City for the fiscal
year ended June 30, 2023:
Business- Type Activities
Leases
Balance at Balance Due within
July 01, 2021 Additions Deletions June 30, 2023 One year
$ 565,837 $
- $ 250,317 $ 315,520 $ 191,659
The City Golf Course fund has entered into multiple lease agreements for equipment. The City is required to
make principal and interest payments through 2027. The lease agreements have interest rates between 1.5% to
4% based on the City's estimated incremental borrowing rate at the inception of the lease. As of June 30, 2023,
the net right to use asset balance is $311,085 and the lease liability balance is $315,520. The current year
amortization and interest expense associated with the lease activities was $252,693 and $11,288.
Remaining principal and interest payments on the leases are as follows:
Year Ending June 30,
Principal Interest
2024 $ 191,659 $ 6,396
2025 72,564 2,820
2026 32,029 1,416
2027 19,268 241
$ 315,520 $ 10,873
52
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 6 - Leases- Lessor Activities
The City has accrued a receivable for three land leases. The remaining receivable for these leases was
$1,432,355 for the year ended June 30, 2023. Deferred inflows related to these leases were $1,351,619 as of
June 30, 2023. Interest revenue recognized on these leases was $45,221 for the year ended June 30, 2023.
Principal receipts of $91,350 were recognized during the fiscal year. The interest rate on the leases was 3
percent. Final receipt is expected in fiscal year 2043.
Year Ending June 30,
Principal Interest
2024 $ 98,239 $ 42,419
2025 105,698 39,168
2026 113,403 35,799
2027 121,480 32,187
2028 129,867 28,397
2029 - 2033 404,921 90,434
2034 - 2038 192,164 56,133
2039 - 2043 266,583 21,158
$ 1,432,355 $ 345,695
Note 7 - Interfund Receivables and Payables
The composition of current interfund receivable and payable balances is as follows:
Due from Other Funds
Due to Other Funds
Non -Major
Governmental
General Fund $ 2,796,975
Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2023.
53
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 8 - Interfund Transfers
Transfers In
Transfer Out
Non -Major
General Fund Governmental
Total
Capital Improvements Fund $ 4,187,642 $ 3,739,908 $ 7,927,550
Non -major Governmental Funds 2,152,000 - 2,152,000
Golf Course Fund 600,000 - 600,000
Total $ 6,939,642 $ 3,739,908 $ 10,679,550
a. $4,187,642 was transferred from the General Fund to the Capital Improvement Fund to fund various
capital projects.
b. $3,739,908 was transferred to the Capital Improvement Fund from various non -major funds to fund
various capital projects.
c. $2,152,000 was transferred from the General Fund to various non -major funds to support various
administrative operations and expenses within the City.
d. $600,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations.
Note 9 - Defined Benefit Pension Plan
Miscellaneous Plan
Plan Description
All qualified employees are eligible to participate in the City's Miscellaneous Employee Pension Plan, a cost-
sharing multiple -employer defined benefit pension plans administered by the California Public Employees'
Retirement System (CaIPERS). Benefit provisions under these plans are established by State statute and City
resolution. CaIPERS issues publicly available reports that include a full description of the pension plans regarding
benefit provision, assumption and membership information. Copies of the report can be found on the CaIPERS
website.
Benefits Provided
CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited
service, equal to one year of full-time employment. Members with five years of total service are eligible to retire
at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10
years of service. The death benefit is one of the following: The Basic Death Benefit, the 1959 Survivor Benefit, or
the Optional Settlement 2W Death Benefit. The cost -of -living adjustments for each plan are applied as specified
by the Public Employees' Retirement Law. The Plan's provisions and benefits in effect at June 30, 2023 are
summarized as follows:
54
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible
compensation
Required employee contribution rates
Required employer contribution rates
Contributions
Tier I
Before
November 1, 2012
2.5% @55
5 years service
monthly for life
50 and up
2% to 2.5%
8.00%
12.200%
Tier II
On or After
November 1, 2012
2% @60
5 years service
monthly for life
50 and up
2% to 2.5%
7.00%
8.650%
PEPRA
On or After
January 1, 2013
2% @62
5 years service
monthly for life
52 and up
1% to 2%
6.75%
7.590%
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 1 following notice of a change in the rate. Funding contributions are determined annually
on an actuarial basis as of June 30th by CaIPERS. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, and any unfunded accrued
liability. The employer is required to contribute the difference between the actuarially determined rate and the
contribution rate of employees. Employer contributions to the pension plan were $13,089,144 for the year
ended June 30, 2023.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
As of June 30, 2023, the City reported a liability of $13,550,553 for its proportionate share of the collective net
pension liability. The net pension liability was measured as of June 30, 2022, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021.The City's
proportion of the collective net pension liability was based on a projection of the City's long-term share of
contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined. The City's proportion of the collective net pension liability as of June 30, 2022 and 2023
is as follows:
Proportion- June 30, 2022
Proportion- June 30, 2023
0.14222
0.28959
Change- Increase (Decrease) 0.14737
For the year ended June 30, 2023, the City recognized pension expense of $1,562,261.
55
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
At June 30, 2023, the City reported deferred outflows and deferred inflows of resources related to pensions as
follows:
Pension contributions subsequent to measurement date
Changes in assumptions
Differences between expected and actual experience
Net difference between projected and actual earnings on
pension plan investments
Change in employer's proportion
Difference between the city's contribution and
proportionate share of contributions
Total
Deferred Outflows
of Resources
$
Deferred Inflows
of Resources
13,089,144 $
1,388,537
272,122
2,482,101
60,959
182,255
3,044,268
1,956,714 58,124
$ 19,249,577 $ 3,284,647
The $13,089,144 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.
Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
Year Ended June 30,
2024
2025
2026
2027
Total
$ 603,470
496,676
257,503
1,518,137
$ 2,875,786
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2022 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2021 total pension liability. The total pension liability in the June 30,
2021 actuarial valuation was determined using the following actuarial methods and assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Discount Rate
Inflation
Projected Salary Increase
Mortality Rate Table
Post-retirement benefit increase
Miscellaneous
June 30, 2021
June 30, 2022
Entry -Age Normal Cost Method
6.90%
2.30%
Varies by Entry Age and Service
Derived using CaIPERS' Membership Data for all Fund
Contract COLA up to 2.30% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies
56
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Changes of Assumptions
The Board of Directors for Ca1PERS approved a change in the discount rate from 7.15% to 6.90% and a change in
the inflation rate from 2.50% to 2.30% during measurement year ended June 30, 2022.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used
to determine the discount rate assumed that employee contributions will be made at the current contribution
rate and that the City's contributions will be made at rates equal to the difference between actuarially
determined contributions rates and the employee rate. Based on those assumptions, each pension plan's
fiduciary net position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
In determining the long-term expected rate of return, CaIPERS took into account long-term market return
expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are
estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long
term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
These geometric rates of return are summarized in the following table:
Asset Class
Strategic
Allocation
Real Return
Global equity - cap -weighted 30.00% 4.45%
Global equity - non -cap -weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emergind Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
57
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City's proportionate share of the net position liability for each Plan, calculated using
the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1 percent point lower or 1 percent higher than the current
rate:
Discount Current Discount
Rate - 1% Discount Rate Rate +1%
(5.90%) (6.90%) (7.90%)
Net Pension Liability $ 21,725,786 $ 13,550,553 $ 6,824,364
Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in the separately issued CaIPERS financial
reports.
Note 10 - Defined Contribution Plan
Plan Description
The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide
retirement excess benefits to general employees of the City. At June 30, 2023, there was one plan member.
There are no required contributions by plan members. During the 2022-2023 fiscal year the City made no
contributions to fund the Supplemental Pension Savings Plan.
Note 11- Other Post Employment Benefit Plan (OPEB)
Plan Description
The City's Retiree Health Plan is a single -employer defined benefit healthcare plan. The City contributes on
behalf of all eligible retirees' $149/month for the calendar year 2022 and $151/month for calendar year 2023,
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.
The City participates in the California Employers' Retiree Benefit Trust (CERBT) for the purpose of accumulating
funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent multiple employer plan for those
electing to prefund OPEB obligations.
58
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Benefits Provided
Retirees are eligible for medical benefits if they retire at age 50+, have 5+ years of service within CaIPERS, and
were enrolled in the CaIPERS health system at retirement. The City provides PEMHCA minimum for each
subscriber, regardless of elected coverage tier.
Employees Covered by Benefit Terms
At June 30, 2022, the most recent valuation date, the following current and former employees were covered by
the benefit terms of the plan:
Active employees 97
Inactive employees or beneficiaries currently receiving benefits 23
Total 120
Contributions
The City makes contributions to the plan based on an actuarially determined rate. Employees are not required to
contribute to the plan. For the year ended June 30, 2023, the City's cash contributions to the plan including the
implied subsidy were $58,070. The City made no contributions to the CERBT trust.
Net OPEB Liability/(Asset)
Actuarial Assumptions — The net OPEB liability/(asset) in the June 30, 2022 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method Entry -Age Normal Cost Method
Actuarial Assumptions
Discount Rate 5.50%
Inflation 2.30%
Investment Rate of Return 5.50%
Mortality (1)
Healthcare Trend Rate 6.5% for fiscal year 2023,
gradually decreasing to an
ultimate rate of 3.73% in fiscal
year 2075.
(1) Derived using CaIPERS Membership Data for all Funds
Mortality rates were based on the CaIPERS November 2021 Experience Study for Public Agency Miscellaneous
Plans.
59
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Changes of Assumptions
Healthcare trend rates were decreased from a rate of 6.7% decreasing gradually to an ultimate rate of 3.8% to
6.5% decreasing gradually to an ultimate rate of 3.73% for the valuation as of June 30, 2022.
Discount Rate
The discount rate used to measure the total OPEB liability was 5.50 percent for the Plan. The projection of cash
flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the
actuarially determined contribution rates.
Changes in Net OPEB Liability:
The changes in the net OPEB liability/(asset) for the Plan as of June 30, 2023 are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 $ 1,913,989 $ 2,051,400 $ (137,411)
Changes in the year
Service cost 85,049 85,049
Interest 107,396 107,396
Differences between expected
and actual experience (623,785) (623,785)
Changes of assumptions 26,883 26,883
Net investment income (257,883) 257,883
Employer contributions 94,021 (94,021)
Benefit payments (94,021) (94,021)
Administrative expense - (518) 518
Net changes (498,478) (258,401) (240,077)
Balance at June 30, 2023 $ 1,415,511 $ 1,792,999 $ (377,488)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it
were calculated using a discount rate that is 1 -percentage -point lower (4.50 percent) or 1 -percentage -point
higher (6.50 percent) than the current discount rate:
1% Decrease
(4.50%)
Discount Rate
(5.50%)
1% Increase
(6.50%)
Net OPEB Liability/(Asset) $ (196,245) $ (377,488) $ (528,996)
60
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it
were calculated using healthcare cost trend rates that are 1 -percentage -point lower (5.5 percent decreasing to
2.7 percent) or 1 -percentage -point higher (7.5 percent decreasing to 4.7 percent) than the current healthcare
cost trend rates:
1% Decrease
(5.5% decreasing
to 2.7%)
Net OPEB Liability/(Asset) $ (560,670)
Current Trend Rate
(6.5% decreasing
to 3.7%)
1% Increase
(7.5% decreasing
to 4.7%)
(377,488) $ (149,652)
For the year ended June 30, 2023, the City recognized OPEB expense of $72,955. At June 30, 2023, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to measurement date $ 58,070 $
Changes in assumptions 54,979 28,614
Difference between expected and actual liability 104,808 562,691
Net difference between projected and investment earnings 151,684
Total
$ 369,541 $ 591,305
The $58,070 reported as deferred outflows of resources related to OPEB resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the fiscal
year ending June 30, 2024. Other amounts reported as deferred outflows or deferred inflows of resources
related to OPEB will be recognized in as OPEB expense as follows:
Year Ended June 30,
2024 $ (18,865)
2025 (15,755)
2026 (17,673)
2026 30,861
2027 (45,265)
Thereafter (213,137)
Total $ (279,834)
61
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 12 - Section 115 Trust
In the fiscal year 2019, the City Council approved the creation of a Section 115 Trust Agreement with U.S Bank
National Association, and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust
was established as a means to set aside monies to fund the City's pension and OPEB obligations. Contributions
to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan members, and
the assets are protected from creditors of the City. The purpose of the creation of the section 115 Trust was to
address the City's pension obligations by accumulating assets to reduce the net pension liability. However, in
accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered
to have present service capacity as plan assets and are therefore considered restricted assets of the City rather
than pension plan assets. Accordingly, the Section 115 Trust's assets are recorded as restricted for pension
benefits in the City's General Fund rather than assets of the pension plan during the measurement of the net
pension liability. The assets held in trust will be considered pension plan assets at the time they are transferred
out of the Trust into the pension plan.
The balance in the Trust for the fiscal year ended June 30, 2023 was $5,317,487. The City currently funds its
OPEB obligations through the CERBT program, and although the Section 115 Trust is able to accept OPEB funds,
the City has no immediate plans to fund OPEB obligations through the Section 115 Trust.
Note 13 - Risk Management
Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
The City of La Quinta is a member of the California Joint Powers Insurance Authority (Authority). The Authority is
composed of 124 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.
Self -Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment
is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and
forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-
insurance programs is based on actuarial analysis. Costs are allocated to individual agencies based on payroll
and claims history, relative to other members of the risk -sharing pool.
62
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Primary Liability Program
Claims are pooled separately between police and general government 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 $100,000 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 $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's
total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed
based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.
Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a
combination of pooled self-insurance, reinsurance, and excess insurance.
Workers' Compensation
Claims are pooled separately between public safety (police and fire) and general government 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 $75,000 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 $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the
pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2020-21 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statutory limits
under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1
million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's
Liability losses from $5 million to $10 million are pooled among members.
Purchased Insurance
Property Insurance —The City of La Quinta participates in the all-risk property protection program of the CJPIA.
This insurance protection is underwritten by several insurance companies. City of La Quinta property is currently
insured according to a schedule of covered property submitted by the City of La Quinta to the CJPIA. City of La
Quinta property currently has all-risk property insurance protection in the amount of $89,106,544. There is a
$10,000 deductible per occurrence except for non -emergency vehicle insurance which has a $2,500 deductible.
Special Event Tenant User Liability Insurance — The City of La Quinta further protects against liability damages by
requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain
activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of La
Quinta according to a schedule. The City of La Quinta then pays for the insurance. The insurance is facilitated by
the Authority.
63
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Earthquake and Flood Insurance — The City of La Quinta purchases earthquake and flood insurance on a portion
of its property. The earthquake insurance is part of the property protection insurance program of the Authority.
The coverage will not pay for loss or damage caused by "earthquake shock" until the amount of loss or damage
exceeds 5% per unit of coverage subject to a minimum deductible of $100,000 per occurrence.
Crime Insurance — The City of La Quinta purchases crime insurance coverage from Alliant Insurance Services. The
policy covers theft, forgery, identity fraud, computer crime, and monetary fraud with a single loss limit of
$1,000,000 and a deductible of $5,000 per occurrence.
Cyber Incident Insurance — The City of La Quinta purchases Cyber Incident Response insurance coverage through
the Authority. The maximum single limit of insurance is $1,000,000.
Adequacy of Protection
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 2022-2023.
Note 14 - Fund Balance
Fund Balance Commitments
In the governmental fund financial statements, committed reserves include:
Natural Disaster Emergency Reserves: These funds may be utilized for the preparation, recovery, and restoration
of services before, during and/or after a natural disaster (such as flood, earthquake, etc.) as defined by City Code
2.20.020.
The target is $15,000,000 and will be reviewed every five years by conducting a risk analysis of all City assets,
insurance levels, and potential federal/state contributions towards disaster recovery efforts. For the year ended
June 30, 2023, the City has committed $15,000,000 for this purpose.
Economic Downturn Reserves: These funds may be used in such instances as a declared national, state, or
regional recession; loss of a major (top 10) revenue -generating business; or a natural disaster resulting in a
significant decline in revenues. These reserves may also be used if overall revenues decrease, or expenditures
increase more than 10% of the previous year's actual revenues or expenditures.
The target of $13,000,000, was based on a long-term analysis of the revenue and expenditure flows
(which included the financial impacts of the Great Recession, the loss of Redevelopment Agencies, and the
COVID-19 pandemic) as well as the application of the Consumer Price Index (CPI) increases to the original base
target.
64
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Cash Flow Reserves: These funds are maintained to have adequate cash on hand to account for the uneven
receipt of revenue. For example, property tax accounts for a large percentage of annual revenue, the bulk of
which is not remitted until December and May of each year.
The target for the Cash Flow Reserves is 10% of each year's revenue budget, or a minimum of $5,000,000. The
cash flow reserve is fully funded as of June 30, 2023.
Capital Improvement Reserves: These funds may be used for capital assets and infrastructure rehabilitation,
improvement, and replacement.
The target of $12,000,000 is based on annual depreciation of assets and may be adjusted by the Consumer Price
Index (CPI). For the year ended June 30, 2023, the City has committed $12,000,000.
Carryovers: These funds are items appropriated in a prior fiscal year that have yet to be spent. Carryovers
committed to Fiscal Year 2022-2023 totaled $2,600,009 at June 30, 2023.
Assigned Fund Balance
The City has the following assigned fund balance shown on the balance sheet:
Assigned to public safety represents property tax accumulated and withheld by the County of Riverside to be
used for fire protection, disaster preparedness, fire prevention, rescue, hazardous materials mitigation,
technical rescue response, medical emergency services, and public service assists. The assigned fund balance
related to this item as of June 30, 2023 is $11,986,970.
Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover
balances as of June 30, 2023 are $22,623,372. Accumulated resources related to the City's sales tax Measure G is
$29,214,191 as of June 30, 2023.
Deficit Fund Balance
At June 30, 2023, the following funds had deficit fund balances:
Major Capital Projects Fund
Capital Improvement (6,099,608)
Nonmajor Special Revenue Funds
Quimby (735,460)
Housing Grant (60,267)
Nonmajor Capital Projects Fund
Library Development (1,118,627)
65
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 15 - 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 has been amended
and extended numerous times with the current contract expiring June 30, 2023. 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 percent of green fees. For the fiscal year ending June 30, 2023, the
Golf Course had a loss before transfers of $719,763.
Note 16 - Construction Commitments
Various construction projects were in progress at June 30, 2023. Projects costs are paid out of the capital
improvements fund. The following material construction commitments, for which funds have been encumbered,
existed at June 30, 2023, with an estimated cost to complete.
Project Name
Project
Number
Contract
Amount
Expenditures
to date as of Remaining
June 30, 2023 Commitments
Capital Improvement Fund
Dune Palms Bridge Improvement
La Quinta X Park
La Quinta Landscape Renovation Improvement
Civic Center Campus Lake/Irrigation Conversion
SilverRock Event Space
Washington Street at Fred Waring Dr
Ave 53 Jefferson St Roundabout
Corporate Yard Admin Offices & Crew
Village Art Plaza Promenade & Cultural Campus
Avenue 50 Bridge Spanning The Evacuation Channel
LQ Skate Park Conver to Other Activity
Hwy 111 Corridor Area Plan Implementation
Citywide Catch Bsin Modification
Avenue 48 Art and Music Line Project
Dune Palms Rd Pavement Rehab -Fred
Fritz Burns Park Improvements
Avenue 50 Pavement Rehab ( Washington St)
City Hall Capacity Improvements
FredWring Drive Pavement Rehabilitation
111205
151609
201603
201606
201608
201701
201709
201805
201901
201902
201903
201905
201908
202008
202101
202102
202201
202202
202203
$ 30,374,245
4,686,639
9,963,148
675,270
7,304,503
1,860,744
3,281,617
591,013
3,310,000
16,349,000
263,000
4,250,000
250,000
2,400,000
1,021,100
6,350,000
1,100,000
800,000
1,470,211
$ (7,218,082)
(4,504,148)
(6,419,536)
(153,754)
(7,002,256)
(1,739,921)
(3,016,952)
(55,772)
(182,469)
(22,064)
(315)
(749,921)
(129,359)
(19,453)
(84,032)
(15,562)
(75)
(14,262)
$ 23,156,163
182,491
3,543,612
521,516
302,247
120,823
264,665
535,241
3,127,531
16,326,936
262,685
3,500,079
250,000
2,270,641
1,001,647
6,265,968
1,084,438
799,925
1,455,949
66
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Project Name
Project Contract
Number Amount
Sports Complex Lighting Replacement
Avenue 50 Widening Improvements
Village Utilities Underground Project
Highway 111 at Jefferson Street Rehab
ADA Transition Plan Update
Moon River Drive Pavement Rehab
Village Parking Lot
Phase II Camera System
Smart Infrastructure Improvements
Ave 52 Pavement Rehabilitation
Ave 58 Pavement Rehabilitation
Avenue 52 Monroe Street
Washington street sidewalk improvement
Highway 111 Event Site
X Park Pedestrian Signal
La Quinta Parks Phase Sports Complex
Citywide Miscellaneous ADA improvements
X Park Building ADA Improvements
Washington Street Connector
Silverrock Dust Control Improvements
Note 17 - Reimbursement Agreements
202204 300,000
202205 539,400
202206 124,315
202207 541,432
202209 150,000 -
202210 400,000 (271,359)
202211 500,000 -
202212 1,797,000 -
202213 250,000 (350)
202214 500,000 (10,213)
202301 1,380,000 -
202302 150,000 -
202303 478,000 -
202304 500,000 -
202305 250,000 -
202306 650,000 -
202307 136,300 -
202308 350,000 -
202309 1,200,000 -
202310 1,000,000 -
Expenditures
to date as of
June 30, 2023
(26,050)
(2,525)
(15,793)
(26,310)
Remaining
Commitments
273,950
536,875
108,522
515,122
150,000
128,641
500,000
1,797,000
249,650
489,787
1,380,000
150,000
478,000
500,000
250,000
650,000
136,300
350,000
1,200,000
1,000,000
On September 9, 2014, the City entered into a sales tax sharing agreement. Under the terms of the agreement
the City shall make quarterly payments of 50 percent of any sales tax generated from the business in an amount
not to exceed $400,000 over an eight-year period. Due to the reporting of sales tax information by the California
Department of Tax and Fee Administration to the City, the reimbursement payments by the City will lag by one
quarter. The agreement terminates when either the $400,000 limit is reached or in eight years whichever comes
first. The business opened in December 2014. As of June 30, 2023, the City made $400,000 in reimbursement
payments to the owner leaving an outstanding balance of $0.
Note 18 - Adoption of New Standard and Correction of Error
As of July 1, 2022, the City adopted GASB Statement No. 96, Subscription -Based Information Technology
Arrangements (SBITAs). The implementation of this standard establishes that a SBITA results in a right to use
subscription IT asset - an intangible asset - and a corresponding liability. The standard provides the
capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA.
The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously were
recognized as outflows of resources based on the payment provisions of the contract. Beginning net position
and fund balance were restated to retroactively adopt the provisions of GASB Statement No. 96. As part of the
restatement as a result of implementation of GASB 96, capital assets in the amount of $99,956 were written off.
67
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
As part of the current year's review of the activities of the Private -Purpose Trust Fund- Successor Agency of the
Former RDA (PPTF), the City identified activities recorded in the PPTF that should have been recorded in the
City's Housing Authority Fund. As a result, the PPTF and the Housing Authority's beginning net position/fund
balance has been restated by $2,846,027. Additionally, in the prior years, the PPTF purchased land, a portion of
which was not recorded in the PPTF ($5,813,436). In total, land in the amount of $14,444,476, is part of the
Housing Authority and the PPTF and Governmental Activities beginning net position has been adjusted
accordingly. The PPTF incorrectly recorded underwriters fees in the previous years. As a result, an adjustment in
the amount of $1,216,538 was recorded to reduce beginning net position.
Net Position/Fund Balance at July 1, 2022, as previously reported
Recognition of right to use subscription IT asset
Recognition of subscription IT liability
Net write off of previously reported capital asset
Recognition of Housing Authority land
Recognition of Housing Authority activities
Correction to previously recorded underwriters fees
Net Position/Fund Balance at July 1, 2022, as restated
Governmental
Activities
Governmental
Activities
Information
Technology
ISF Fund
Housing
Authority
Fund
Private -Purpose
Trust Fund
Successor
Agency of the
former RDA
$ 762,727,717 $
945,351
(810,483)
(99,956)
14,444,476
2,846,027
2,480,617 $ 24,015,857 $ (156,242,158)
945,351 -
(810,483) - -
(99,956) -
(8,631,040)
2,846,027 (2,846,027)
(1,216,538)
$ 780,053,132 $ 2,515,529 $ 26,861,884 $ (168,935,763)
The effect of the restatement to the June 30, 2022 change in net position/fund balance is as follows:
Change in Net Position/Fund Balance, June 30, 2022,
as previously reported
Recognition of right to use subscription IT asset
Recognition of subscription IT liability
Net write off of previously reported capital asset
Recognition of Housing Authority land
Recognition of Housing Authority activities
Correction to previously recorded underwriters fees
Change in Net Position/Fund Balance June 30, 2022,
as restated
Governmental
Activities
Governmental
Activities
Information
Technology
ISF Fund
Housing
Authority
Fund
Private -Purpose
Trust Fund
Successor
Agency of the
former RDA
$ 29,585,150
945,351
(810,483)
(99,956)
14,444,476
2,846,027
$ 307,693 $ 209,157 $ 16,385,791
945,351
(810,483)
(99,956)
(8,631,040)
2,846,027 (2,846,027)
(1,216,538)
$ 46,910,565 $
342,605 $ 3,055,184 $ 3,692,186
68
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Note 19 - Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 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, 2012, the City Council elected to become the Successor
Agency for the Former Redevelopment Agency ('Former 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 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 Agency is reported as a fiduciary fund (private purpose trust fund).
Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City
Cash and investments with fiscal agent
See note 2 for required cash and investments disclosures.
$ 15,570,390
1,549
$ 15,571,939
69
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Due from other Governments
La Quinta Library
In April 2005, an advance of $2,490,273 was made from the former redevelopment agency to provide funding
for the construction of the public library. The loan accrues interest at the earnings rate of the City's investment
pool fund. The remaining balance of this loan at June 30, 2023, is $1,118,627.
Deferred Outflows of Resources
As debt is refunded, the difference between the carrying value of the refunded debt and the reacquisition price
is recorded as a deferred outflow of resources and amortized over the shorter of the new or refunded debt,
whichever is shorter. Activity during the fiscal year is comprised of the following:
Balance at Balance
July 01, 2022 Additions Deductions June 30, 2023
Deferred charge on refunding $ 15,766,509 $
Long -Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2023, follows:
$ 1,124,995 $ 14,641,514
Tax allocation bonds
City loans
Unamortized premiums/
discounts
Total
2016 Series A
Restated
Balance at
July 01, 2022 Additions Repayments
$ 174,310,000
27, 394,184
(186,173)
$ 13,190,000
476,491 3,369,682
10,638
$ 201,518,011 $ 476,491 $ 16,570,320
Balance
June 30, 2023
$ 161,120,000
24,500,993
(175,535)
Due within
One year
$ 13,255,000
3,437,076
$ 185,445,458 $ 16,692,076
On December 22, 2016, the La Quinta Redevelopment Project Areas No. 1 and 2 Subordinate Tax Allocation
Refunding Bonds 2016 Taxable Series A Bonds were issued for $35,055,000 by the Successor Agency to the La
Quinta Redevelopment Agency (the "Agency") to refinance on an advance basis the La Quinta Redevelopment
Agency's (the "Prior Agency") previously issued $6,000,000 La Quinta Redevelopment Project Area No. 2,
Subordinate Taxable Tax Allocation Bonds, Series 2011 (the "2011 Project Area No. 2 Taxable Bonds") of which
$5,810,000 was outstanding and the Prior Agency's loan obligation under the Loan Agreement, dated
February 3, 2004 as supplemented by the Second Supplemental Loan Agreement, dated as of March 1, 2011
(the "2011 Loan Obligation") in connection with the La Quinta Financing Authority's previously issued
$28,850,000 Local Agency Subordinate Taxable Revenue Bonds, 2011 Series A (the "2011 Taxable Housing
Bonds") of which $26,635,000 was outstanding.
70
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
The Bonds were issued on a subordinate basis to the $65,600,000 Successor Agency to the La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding Bonds,
2014 Series. The Bonds are payable from and secured by the Pledged Tax Revenues, as defined herein, to be
derived from the La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2.
The principal of and interest on the Bonds are payable solely from the pledged tax revenues allocated to the
Successor Agency from the project areas. The principal balance of outstanding bonds at June 30, 2023, is
$26,555,000 with an unamortized discount of $175,534.
The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency, in
whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026 or on
any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to be
redeemed, without premium, plus accrued interest to the redemption date.
Year Ending June 30, Principal Interest Total
2021 Series A
2024 $ 1,465,000 $ 1,035,479 $ 2,500,479
2025 1,510,000 988,315 2,498,315
2026 1,565,000 937,680 2,502,680
2027 1,620,000 882,845 2,502,845
2028 1,675,000 824,065 2,499,065
2029-2033 9,375,000 3,072,634 12,447,634
2034-2038 8,655,000 897,966 9,552,966
2039-2040 690,000 18,334 708,334
$ 26,555,000 $ 8,657,318 $ 35,212,318
On April 14, 2021, the Agency issued $156,915,000 in Series 2021 A Tax Allocation Refunding Bonds to refund
the Series 2013 A and B and Series 2014 A Tax Allocation Bonds.
The bonds are payable in annual installments ranging from $4,785,000 to $13,610,000 until maturity on
September 1, 2034. Interest is payable semiannually on March 1 and September 1 of each year, at a rate of
2.774%. Bonds outstanding at June 30, 2023 were $134,565,000. The principal and interest on the bonds are
payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas.
71
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
Future debt service requirements on these bonds are as follows:
Year Ending June 30, Principal Interest Total
2024 $ 11,790,000 $ 2,405,638 $ 14,195,638
2025 11,845,000 2,338,010 14,183,010
2026 11,920,000 2,227,650 14,147,650
2027 12,060,000 2,072,532 14,132,532
2028 12,240,000 1,881,273 14,121,273
2029-2033 65,005,000 5,354,057 70,359,057
2034-2035 9,705,000 269,175 9,974,175
$ 134,565,000 $ 16,548,335 $ 151,113,335
Loans from the City of La Quinta
The City of La Quinta loaned money to the Former Agency to cover operating and capital shortfalls. In a letter
dated November 6, 2013, the California Department of Finance approved the loans as enforceable obligations to
be paid through Successor Agency property tax. This loan approved split between the City's General and the
Housing Authority Funds. As of June 30, 2023, principal and capitalized interest due to the City of La Quinta was
$24,500,993 and is included as part of the due from other governments balance in the City's General and the
Housing Authority Funds.
On November 22, 2017, the Department of Finance (DOF) approved the last and final Recognized Obligation
Payment Schedules (ROPS). The ROPS is a comprehensive schedule which includes all bond debt service
payments, City loan repayments, administration, and annual reporting requirements from fiscal years 2018-2019
to 2039-2040.
Estimated future loan payment requirements on the City loan are as follows:
Year Ending June 30,
Principal Interest Total
2024 $ 3,437,076 $ - $ 3,437,076
2025 3,505,817 - 3,505,817
2026 3,575,934 - 3,575,934
2027 3,647,452 3,647,452
2028 3,720,401 3,720,401
2029-2030 6,614,313 - 6,614,313
$ 24,500,993 $ - $ 24,500,993
72
City of La Quinta, California
Notes to Financial Statements
June 30, 2023
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 $186,325,653 with annual debt service requirements as indicated above. For the
current year, the total property tax revenue recognized by the Successor Agency for the payment of
indebtedness incurred was $20,124,588 and the debt service obligation on the bonds was $16,271,464.
Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at
June 30, 2023.
73
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Required Supplementary Information
June 30, 2023
City of La Quinta, California
City of La Quinta, California
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2023
Variance with
Budget Amounts Actual Final Budget
Original Final Amounts Positive (Negative)
Budgetary Fund Balance, July 1 $ 165,907,013 $ 165,907,013 $ 165,907,013 $
Resources (Inflows)
Taxes 54,946,700 61,746,700 65,146,000 3,399,300
Licenses and permits 2,823,200 3,461,200 3,994,989 533,789
Intergovernmental 7,853,000 9,378,000 9,989,061 611,061
Charges for services 1,081,100 1,391,100 1,558,784 167,684
Use of money and property 555,000 2,855,000 2,388,981 (466,019)
Fines and forfeitures 462,000 522,000 563,494 41,494
Miscellaneous 600,100 1,395,100 2,479,742 1,084,642
Transfer In - 5,000,000 - (5,000,000)
Amounts available for appropriations 234,228,113 251,656,113
252,028,064 371,951
Charges to Appropriation (Outflows)
General government
Legislative 351,400 354,700 312,671 42,029
City manager 1,177,540 1,326,164 1,083,016 243,148
City attorney 796,000 796,000 358,188 437,812
Marketing 1,632,128 1,833, 378 1,648,064 185,314
Human resources 495,698 591,898 439,030 152,868
City clerk 1,257,526 1,264,079 996,957 267,122
Fiscal services 1,595,830 1,610,216 1,560,869 49,347
Central services 4,388,100 14,303,716 13,570,997 732,719
The Hub customer services 1,236,482 1,244,439 996,706 247,733
Public safety
Police 18,185,900 18,246,900 16,165,493 2,081,407
Code compliance 1,663,996 1,677,746 1,571,807 105,939
Fire 8,836,872 8,838,622 7,625,126 1,213,496
Planning and development
Current planning 744,830 749,304 652,601 96,703
Public buildings 1,390,052 1,553,936 1,504,048 49,888
Building & safety 1,291,362 1,457,240 1,375,536 81,704
Administration 756,824 775,228 771,529 3,699
Community services
Community services admin 880,480 883,980 740,952 143,028
Wellness center 682,102 757,040 717,948 39,092
Recreation programs/special events 1,088,734 1,498,751 1,216,488 282,263
Park maintenance 3,042,072 3,207,347 3,107,294 100,053
See Note to Required Supplementary Information 73
City of La Quinta, California
Budgetary Comparison Schedule — General Fund
Year Ended June 30, 2023
Public works
Administration
Development services
Maintenance/operations - street
Engineering services
Capital outlay
Debt Service
Principal
Transfers out
Total charges to appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 794,862
512,960
754,768
1,020,756
35,000
10,039,000
$ 800,848
514,551
773,415
1,248,656
961,000
47,033,518
64, 651, 274 114, 302, 672
Actual
Amounts
Variance with
Final Budget
Positive (Negative)
$ 614,776 $
413,090
474,366
646,511
536,087
10,764
6,939,642
66,050,556
186,072
101,461
299,049
602,145
424,913
(10,764)
40,093,876
48, 252,116
$ 169,576,839 $ 137,353,441 $ 185,977,508 $ 48,624,067
See Note to Required Supplementary Information 74
City of La Quinta, California
Budgetary Comparison Schedule — Housing Authority
Year Ended June 30, 2023
Budgetary Fund Balance, July 1, as restated
Resources (Inflows)
Use of money and property
Extraordinary item
Miscellaneous
Amounts available for appropriations
Charges to Appropriation (Outflows)
Planning and development
Community services
Capital Outlay
Total charges to appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 26,861,884
120,500
200,000
1,151,000
28,333,384
1,712,670
250,000
$ 26,861,884
120,500
200,000
1,274,000
Actual
Amounts
$ 26,861,884
Variance with
Final Budget
Positive
(Negative)
$
1,694,227 1,573,727
(200,000)
96,405 (1,177,595)
28,456,384 28,652,516
2,112,295
305,000
1,830,275
254,998
201,409
1,962,670 2,417,295 2,286,682
196,132
282,020
50,002
(201,409)
130,613
$ 26,370,714 $ 26,039,089 $ 26,365,834 $ 326,745
See Note to Required Supplementary Information 75
City of La Quinta, California
Budgetary Comparison Schedule — Disaster Recovery
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (97,108) $ (97,108) $ (97,108) $
Resources (Inflows)
Use of money and property 10,000 10,000
Miscellaneous revenue 4,993,505 4,993,505
Amounts available for
appropriations
4,906,397 4,906,397
46,930
36,930
(4,993,505)
(50,178) (4,956,575)
Budgetary Fund Balance, June 30 $ 4,906,397 $ 4,906,397 $ (50,178) $ (4,956,575)
See Note to Required Supplementary Information 76
City of La Quinta, California
Schedule of Proportionate Share of the Net Pension Liability — Miscellaneous Plan
Last 10 Years*
2015 2016 2017 2018 2019 2020 2021 2022 2023
Proportion of the net pension liability 0.1034% 0.1260% 0.1257% 0.1272% 0.1287% 0.13134% 0.13329% 0.14222% 0.28959%
Proportionate share of the net
pension liability $ 6,433,391 $ 8,651,290 $ 10,874,098 $ 12,612,523 $ 12,403,691 $ 13,458,200 $ 14,502,311 $ 7,691,773 $ 13,550,553
Covered payroll $ 5,421,945 $ 5,480,758 $ 5,569,002 $ 5,739,416 $ 6,064,875 $ 6,669,204 $ 7,066,830 $ 6,238,425 $ 6,223,072
Proportionate share of the net
pension liability as a percentage
of covered payroll 118.6556 157.85% 195.26% 219.75% 204.52% 201.80% 205.22% 123.30% 217.75%
Plan fiduciary net position as a
percentage of the total pension
liability 79.82% 78.40% 74.06% 73.31% 75.30% 77.73% 77.71% 90.60% 90.60%
* - Fiscal year 2015 was the first year of implementation, therefore, only nine years are shown.
Changes in Assumptions
The discount rate changed from 7.65 percent used for the June 30, 2016 measurement date to 7.15 percent used for the June 30, 2017
measurement date.
The discount rate changed from 7.15 percent used for the June 30, 2021 measurement date to 6.90 percent used for the June 30, 2022
measurement date.
The inflation rate changed from 2.50 percent used for the June 30, 2021 measurement date to 2.30 percent used for the June 30, 2022
measurement date.
Covered Payroll
In accordance with GASB Statement No. 82, Pension Issues - An Amendment of GASB Statement No. 67, No. 68, and No. 73, we have restated to show
covered payroll based on pensionable earnings.
77
City of La Quinta, California
Schedule of Pension Plan Contributions — Miscellaneous Plan
Last 10 Years*
2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially determined contributions -
miscellaneous $ 728,073 $ 797,603 $ 949,231 $ 1,061,439 $ 1,284,275 $ 1,479,137 $ 2,581,158 $ 4,650,357 $ 1,920,092
Contributions in relation to the actuarially
determined contribution (728,073) (797,603) (949,231) (1,061,439) (1,284,275) (1,479,137) (2,581,158) (4,650,357) (13,089,144)
Contribution deficiency (excess) $ $ $ $ $ - $ $ $ - $(11,169,052)
Covered payroll $ 5,480,758 $ 5,569,002 $ 5,739,416 $ 6,064,875 $ 6,669,204 $ 7,066,830 $ 6,238,425 $ 6,223,072 $ 6,682,312
Contributions as a percentage of
covered payroll 13.28% 14.32% 16.54% 17.50% 19.26% 20.93% 41.38% 74.73% 195.88%
* - Fiscal year 2015 was the first year of implementation, therefore, only nine years are shown.
Covered Payroll
In accordance with GASB Statement No. 82, Pension Issues - An Amendment of GASB Statement No. 67, No. 68, and No. 73, we have restated to show
covered payroll based on pensionable earnings.
78
City of La Quinta, California
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
Last 10 Years*
2018 2019 2020 2021 2022 2023
Total OPEB Liability
Service cost $ 90,827 $ 93,438 $ 85,174 $ 88,219 $ 87,732 $ 85,049
Interest 93,346 100,177 93,071 97,183 102,210 107,396
Differences between expected and
actual experience - 71,533 - 103,495 (1,617) (623,785)
Changes of assumptions - (44,229) (14,219) 44,464 - 26,883
Benefit payments (91,822) (86,570) (98,584) (98,490) (89,947) (94,021)
Net Change in Total OPEB Liability 92,351 134,349 65,442 234,871 98,378 (498,478)
Total OPEB liability- beginning 1,288,598 1,380,949 1,515,298 1,580,740 1,815,611 1,913,989
Total OPEB liability - ending $ 1,380,949 $ 1,515,298 $ 1,580,740 $ 1,815,611 $ 1,913,989 $ 1,415,511
Plan Fiduciary Net Position (FNP)
Employer contributions $ - $ 1,609,970 $ 98,584 $ 98,490 $ 89,947 $ 94,021
Net investment income - (1,680) 106,805 88,052 336,983 (257,883)
Benefit payments - (86,570) (98,584) (98,490) (89,947) (94,021)
Administrative expense - (406) (327) (803) (624) (518)
Net Change in Plan Fiduciary Net Position - 1,521,314 106,478 87,249 336,359 (258,401)
Plan Fiduciary Net Position- Beginning of Year 1,521,314 1,627,792 1,715,041 2,051,400
Plan Fiduciary Net Position- End of Year $ - $ 1,521,314 $ 1,627,792 $ 1,715,041 $ 2,051,400 $ 1,792,999
Net OPEB liability/(asset) - End of Year $ 1,380,949 $ (6,016) $ (47,052) $ 100,570 $ (137,411) $ (377,488)
Fiduciary Net Position as a percentage of
the Total OPEB Liability 0.0% 100.4% 103.0% 94.5% 107.2% 126.7%
Covered -employee payroll 5,603,428 6,064,875 6,669,204 7,066,830 6,238,425 6,223,072
Net OPEB liability/(asset) as a percentage of
covered -employee payroll 24.6% -0.1% -0.7% 1.4% -2.2% -6.1%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation, therefore only six years are shown.
Changes in Assumptions
The discount rate and long-term expected rate of return changed from 6.00 percent used for the June 30, 2019 measurement
date to 5.50 percent used for the June 30, 2020 measurement date.
The inflation assumption was changed from 2.50 percent used for the June 30, 2019 measurement date to 2.25 percent used
for the June 30, 2020 measurement date.
For the June 30, 2020 measurement date, healthcare trend rates were reset to reflect updated cost increase expectations.
79
City of La Quinta, California
Schedule of OPEB Contributions
Last 10 Years*
2018 2019 2020 2021 2022 2023
Actuarially determined contribution (ADC) $ 201,513 $ 88,280 $ 90,229 $ 86,939 $ 101,376 $ 78,734
Contributions in relation to the (ADC) 1,609,970 98,584 98 490 89 947 91,530 58,070
Contribution deficiency (excess) (1,408,457) (10,304) (8,261) (3,008) 9,846 20,664
Covered -employee payroll
Contributions as a percentage of covered-emp
Notes to Schedule
Valuation date:
$ 6,064,875 $ 6,669,204 $ 7,066,830 $ 6,238,425 $ 6,223,072 $ 6,682,312
26.5% 1.5% 1.4% 1.4% 1.5% 0.9%
Actuarially determined contribution rates are calculated
as of June 30, one year prior to the end of the fiscal year
in which contributions reported.
Methods and assumptions used to determined contribution rates:
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Inflation
Healthcare Trend Rate
Investment rate of return
Retirement age
Mortality
Entry -Age Normal Cost Method
Level percent of payroll
19 years
Market value
2.25%
7% in the first year, trending down to 4% over 58 years.
5.50%
55
Derived using CaIPERS Membership Data for all Funds
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation, therefore only six years are shown.
80
City of La Quinta, California
Note to Required Supplementary Information
June 30, 2023
Note 1- Budget Procedures
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.
The City did not adopt a budget for the Transportation Uniform Mitigation Fee Special Revenue Fund.
Budget Basis of Accounting
Budget for governmental funds is adopted on a basis consistent with generally accepted accounting principles
(GAAP).
Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations for the year ended June 30, 2023:
General Fund
Debt Service
Housing Authority
Capital Outlay
Library and Museum
Transfers out
South Coast Air Quality
Planning and Development
AB 939
Planning and Development
Housing Grants
Planning and Development
Law Enforcement
Public Safety
Transfer Out
Measure A
Public Works
Library Development
Debt Service
Budget
Actual Variance
$ $ 10,764 $ (10,764)
201,409 (201,409)
122,382 (122,382)
46,500 52,827 (6,327)
150,000 180,543 (30,543)
90,000 97,052 (7,052)
17,000 29,366 (12,366)
49,296 (49,296)
33,703 (33,703)
15,000 25,504 (10,504)
81
Supplementary Information
June 30, 2023
City of La Quinta, California
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City of La Quinta, California
Other Governmental Funds
June 30, 2023
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 and Museum Fund — To account for revenues from property tax increment dedicated library and
museum 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 Enforcement Services Account (SLESA) 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.
Lighting and Landscaping 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 Fund — To account for contributions to be distributed to public safety officers
disabled or killed in the line of duty.
Art 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.
Housing Grant Fund — To account for housing related grants as required by outside agencies for reporting
purposes.
Law Enforcement Fund — To account for law enforcement grants and restricted revenue for public safety.
82
City of La Quinta, California
Other Governmental Funds
June 30, 2023
Measure A Fund — In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund
a variety of highway improvements, local street and road maintenance, commuter assistance and specialized
highway transit projects. This fund is used to collect this tax and pursuant to the provision of Measure A, it is
restricted for local street and road expenditures.
Economic Development Fund —To account for the revenues and expenditures related to proceeds from sale of
City owned land and future economic development.
AB 1379 Fund — To account for the revenues and expenditures related to the annual business license
accessibility fee to be used for expenses enhancing accessibility requirements.
Transportation Uniform Mitigation Fee Fund —To account for the revenues and expenditures related to
Transportation Uniform Mitigation Fee monies.
Capital Project Funds
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Infrastructure Fund —To account for the accumulation of resources provided through developer fees for the
acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new Developer
Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this
date, and is budgeted by the Council through adoption of the annual capital improvement program budget.
Civic Center Fund —This fund accounts for the accumulation of resources provided through developer fees for
the acquisition, construction, or improvement of the Civic Center.
Maintenance Facilities DIF, Transportation Fund, Parks and Recreations Fund, Library Development Fund,
Community Center Fund, Street Facility Fund, Park Facility Fund, Fire Facility Fund —To account for the
accumulation of resources provided through developer fees for the acquisition, construction, or improvement of
the City's infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight
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 — This fund is used to account for the debt service that will be used for the
principal and interest payments of the Financing Authority's outstanding debt and any related reporting
requirements.
83
City of La Quinta, California
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts
Taxes
Accrued interest
Prepaid costs
Due from other governments
Special Revenue Funds
State Library and Federal
Gas Tax Museum Assistance
SLESA
Lighting and
Landscaping
$ 2,579,476 $ 10,296,846 $ 2,152 $ 482,257 $ 799,316
232,421
2,285 9,121
468
1,376,888
2
180,349
427
45,397
708
11,448
Total assets $ 2,814,182 $ 11,683,323 $ 182,503 $ 482,684 $ 856,869
Liabilities and Fund Balances
Liabilities
Accounts payable $ 1,698 $ 131,262 $ - $ 918 $ 287,970
Accrued liabilities 25,399 4,354 - - 14,821
Due to other governments - - -
Due to other funds - - -
Total liabilities
27,097 135,616 - 918 302,791
Deferred Inflow of Resources
Unavailable revenues - 180,349
Fund Balances
Nonspendable
Prepaid costs - 468 -
Restricted for
Planning and development projects - -
Public safety - 481,766
Community services - 11,547,239 2,154 -
Public works 2,787,085 - 554,078
Capital projects -
Unassigned -
Total fund balances 2,787,085 11,547,707 2,154 481,766 554,078
Total liabilities and fund balances $ 2,814,182 $ 11,683,323
182,503 $ 482,684 $ 856,869
84
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts
Taxes
Accrued interest
Prepaid costs
Due from other governments
Special Revenue Funds
La Quinta Public Art in South Coast
Quimby Safety Officer Public Places Air Quality AB 939
$ 53,093 $ 870,589
84,772 $ 728,940
47 771 75 646
- 12,627 3,826
Total assets $ - $ 53,140 $ 871,360 $ 97,474 $ 733,412
Liabilities and Fund Balances
Liabilities
Accounts payable $ $ - $ $ 11,254 $ 2,412
Accrued liabilities
Due to other governments
Due to other funds 735,460
Total liabilities 735,460 - 11,254 2,412
Deferred Inflow of Resources
Unavailable revenues
Fund Balances
Nonspendable
Prepaid costs
Restricted for
Planning and development projects - - - 86,220 731,000
Public safety 53,140 - -
Community services - - 871,360 -
Public works - - -
Capital projects - - -
Unassigned (735,460) - - -
Total fund balances (735,460) 53,140 871,360 86,220 731,000
Total liabilities and fund balances $ $ 53,140 $ 871,360 $ 97,474 $ 733,412
85
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts
Taxes
Accrued interest
Prepaid costs
Due from other governments
Special Revenue Funds
Housing Law Economic
Grant Enforcement Measure A Development AB 1379
$ 202,308 $ 3,753,241 $ 3,288,072 $ 86,425
179
169,977
357,529
3,325 2,912 77
Total assets $ - $ 202,487 $ 4,114,095 $ 3,460,961 $ 86,502
Liabilities and Fund Balances
Liabilities
Accounts payable $ - $ - $ - $ 7,510 $ 1,923
Accrued liabilities - -
Due to other governments - -
Due to other funds 60,267 35,394
Total liabilities 60,267 35,394 7,510 1,923
Deferred Inflow of Resources
Unavailable revenues - - - 169,977
Fund Balances
Nonspendable
Prepaid costs - - - - -
Restricted for
Planning and development projects - - - 84,579
Public safety - 167,093 - -
Community services - - - 3,283,474 -
Public works - - 4,114,095 - -
Capital projects - - -
Unassigned (60,267) - -
Total fund balances (60,267) 167,093 4,114,095 3,283,474 84,579
Total liabilities and fund balances $ - $ 202,487 $ 4,114,095 $ 3,460,961 $ 86,502
86
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2023
Special Revenue
Funds
Capital Projects Funds
Transportation Maintenance
Uniform Facilities
Mitigation Fee DIF Infrastructure Civic Center Transportation
Assets
Pooled cash and investments $ 349,818 $ 311,407 $ 19,225 $ 1,666,219 $ 5,513,259
Receivables
Accounts
Taxes -
Accrued interest 276 17 1,475 4,883
Prepaid costs
Due from other governments
Total assets
Liabilities and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
$ 349,818 $ 311,683 $ 19,242 $ 1,667,694 $ 5,518,142
$ 343,221 $
Total liabilities 343,221
Deferred Inflow of Resources
Unavailable revenues
Fund Balances
Nonspendable
Prepaid costs
Restricted for
Planning and development projects 6,597 311,683
Public safety
Community services
Public works
Capital projects 19,242 1,667,694 5,518,142
Unassigned
Total fund balances 6,597 311,683 19,242 1,667,694 5,518,142
Total liabilities and fund balances $ 349,818 $ 311,683 $ 19,242 $ 1,667,694 $ 5,518,142
87
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2023
Assets
Pooled cash and investments
Receivables
Accounts
Taxes
Accrued interest
Prepaid costs
Due from other governments
Capital Projects Funds
Parks and Library Community
Recreation Development Center Street Facility Park Facility
$ 1,607,785 $
$ 979,452 $ 80,190 $ 7,552
1,424 868 71 7
Total assets $ 1,609,209 $
Liabilities and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
1,118,627
Total liabilities 1,118,627
Deferred Inflow of Resources
Unavailable revenues
Fund Balances
Nonspendable
Prepaid costs
Restricted for
$ 980,320 $ 80,261 $ 7,559
Planning and development projects -
Public safety
Community services - 7,559
Public works - 80,261
Capital projects 1,609,209 980,320
Unassigned (1,118,627) - -
Total fund balances 1,609,209 (1,118,627) 980,320 80,261 7,559
Total liabilities and fund balances $ 1,609,209 $ $ 980,320 $ 80,261 $ 7,559
88
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2023
Capital Projects Debt Service
Fund Fund
Fire Facility
Total
Financing Governmental
Authority Funds
Assets
Pooled cash and investments $ 575,798 $ - $ 34,338,192
Receivables
Accounts - 169,977
Taxes - 635,347
Accrued interest 510 - 30,106
Prepaid costs - 468
Due from other governments - - 1,585,138
Total assets
Liabilities and Fund Balances
$ 576,308 $ - $ 36,759,228
Liabilities
Accounts payable $ $ - $ 788,168
Accrued liabilities - - 44,574
Due to other governments - 1,118,627
Due to other funds 831,121
Total liabilities 2,782,490
Deferred Inflow of Resources
Unavailable revenues 350,326
Fund Balances
Nonspendable
Prepaid costs
Restricted for
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total fund balances
576,308
468
1,220,079
1,278,307
15,711,786
7,535,519
9,794,607
(1,914,354)
576,308 - 33,626,412
Total liabilities and fund balances $ 576,308 $ - $ 36,759,228
89
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2023
Special Revenue Funds
State Library and Federal Lighting and
Gas Tax Museum Assistance SLESA Landscaping
Revenues
Taxes $ $ - $ $ $
Assessments - - - 981,315
Intergovernmental 1,809,499 3,531,533 181,574 165,271 -
Investment income 48,630 212,997 37 9,398 13,718
Net decrease in fair value of
investments (32,270) (83,053) (11) (4,748) (6,620)
Developer participation -
Miscellaneous - 2,602 - - 23,499
Total revenues 1,825,859 3,664,079 181,600 169,921 1,011,912
Expenditures
Current
General government - -
Public safety 65,558
Planning and development - - - -
Community services - 1,966,150 - -
Public works 1,308,114 3,315 - 2,576,738
Capital outlay - - - -
Debt service
Interest and fiscal charges - - - - -
Total expenditures 1,308,114
Excess (Deficiency) of Revenues
over (under) Expenditures 517,745
1,966,150 3,315
1,697,929 178,285
65,558 2,576,738
104,363 (1,564,826)
Other Financing Sources (Uses)
Transfers in 600,000 1,500,000
Transfers out (248,723) (122,382) (178,259) -
Total other financing sources (uses) 351,277 (122,382) (178,259) - 1,500,000
Net Change in Fund Balances 869,022 1,575,547 26 104,363 (64,826)
Fund Balances, Beginning of Year 1,918,063 9,972,160 2,128 377,403 618,904
Fund Balances, End of Year $ 2,787,085 $ 11,547,707 $ 2,154 $ 481,766 $ 554,078
90
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended June 30, 2023
Special Revenue Funds
La Quinta Public Art in South Coast
Quimby Safety Officer Public Places Air Quality AB 939
Revenues
Taxes $ - $ $ $ $ 84,847
Assessments - - -
Intergovernmental - 101,757
Investment income - 1,087 17,868 1,635 15,170
Net decrease in fair value of
investments - (330) (5,242) (1,329) (1,050)
Developer participation 83,086
Miscellaneous - - - - -
Total revenues
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
757 95,712 102,063 98,967
59,627
48,347
Total expenditures - 107,974
52,827 180,543
52,827 180,543
Excess (Deficiency) of Revenues
over (under) Expenditures - 757 (12,262) 49,236 (81,576)
Other Financing Sources (Uses)
Transfers in - 2,000 50,000
Transfers out (21,791) (75)
Total other financing sources (uses) (21,791) 2,000 49,925
Net Change in Fund Balances (21,791) 2,757 37,663 49,236 (81,576)
Fund Balances, Beginning of Year (713,669) 50,383 833,697 36,984 812,576
Fund Balances, End of Year $ (735,460) $ 53,140 $ 871,360 $ 86,220 $ 731,000
91
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended June 30, 2023
Special Revenue Funds
Housing Law Economic
Grant Enforcement Measure A Development AB 1379
Revenues
Taxes $ $ $ 2,036,268 $ - $
Assessments - - - -
Intergovernmental 160,000 4,896 - 19,231
Investment income 4,565 74,637 149,413 1,688
Net decrease in fair value of
investments - (35) (8,641) (19,798) (861)
Developer participation
Miscellaneous - - - - -
Total revenues 160,000 9,426 2,102,264 129,615 20,058
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
97,052
29,366
3,000 1,923
33,703
Total expenditures 97,052 29,366 33,703 3,000 1,923
Excess (Deficiency) of Revenues
over (under) Expenditures 62,948
(19,940) 2,068,561
Other Financing Sources (Uses)
Transfers in
Transfers out - (49,296) (2,694,735)
Total other financing sources (uses) (49,296) (2,694,735)
126,615 18,135
Net Change in Fund Balances 62,948 (69,236) (626,174) 126,615 18,135
Fund Balances, Beginning of Year (123,215) 236,329 4,740,269 3,156,859 66,444
Fund Balances, End of Year $ (60,267) $ 167,093 $ 4,114,095 $ 3,283,474 $ 84,579
92
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2023
Special Revenue
Funds
Capital Projects Funds
Transportation Maintenance
Uniform Facilities
Mitigation Fee DIF Infrastructure Civic Center Transportation
Revenues
Taxes $ $ - $ - $ $ -
Assessments - -
Intergovernmental - - -
Investment income 5,489 398 30,521 103,344
Net decrease in fair value of
investments (4,212) (105) (19,897) (48,299)
Developer participation - 130,312 - 530,615 1,755,485
Miscellaneous -
Total revenues
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
131,589 293 541,239 1,810,530
400,000
Total expenditures - - - - 400,000
Excess (Deficiency) of Revenues
over (under) Expenditures
131,589 293 541,239 1,410,530
Other Financing Sources (Uses)
Transfers in - - -
Transfers out - - - (75) (395,857)
Total other financing sources (uses) - - - (75) (395,857)
Net Change in Fund Balances 131,589 293 541,164 1,014,673
Fund Balances, Beginning of Year 6,597 180,094 18,949 1,126,530 4,503,469
Fund Balances, End of Year $ 6,597 $ 311,683 $ 19,242 $ 1,667,694 $ 5,518,142
93
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended June 30, 2023
Capital Projects Funds
Parks and Library Community
Recreation Development Center Street Facility Park Facility
Revenues
Taxes $ - $ - $ - $ $
Assessments - - - -
Intergovernmental - - - -
Investment income 25,884 - 17,248 1,621 136
Net decrease in fair value of
investments (28,661) (12,503) (505) (75)
Developer participation 966,433 180,153 401,734 3,360 1,600
Miscellaneous - - -
Total revenues
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
963,656 180,153 406,479 4,476 1,661
25,504
Total expenditures - 25,504
Excess (Deficiency) of Revenues
over (under) Expenditures 963,656 154,649 406,479 4,476 1,661
Other Financing Sources (Uses)
Transfers in
Transfers out
(28,715)
Total other financing sources (uses) (28,715) -
Net Change in Fund Balances 934,941 154,649 406,479 4,476 1,661
Fund Balances, Beginning of Year 674,268 (1,273,276) 573,841 75,785 5,898
Fund Balances, End of Year $ 1,609,209 $ (1,118,627) $ 980,320 $ 80,261 $ 7,559
94
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2023
Funds
Debt Service
Fund
Total
Financing Governmental
Fire Facility Authority Funds
Revenues
Taxes $ - $ $ 2,121,115
Assessments - 981,315
Intergovernmental - 5,973,761
Investment income 10,689 907 747,080
Net decrease in fair value of
investments (6,608) - (284,853)
Developer participation 162,923 - 4,215,701
Miscellaneous - - 26,101
Total revenues 167,004 907 13,780,220
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
over (under) Expenditures
907
907
94,924
335,345
2,025,777
4,321,870
48,347
25,504
907 6,852,674
167,004 - 6,927,546
Other Financing Sources (Uses)
Transfers in - - 2,152,000
Transfers out - - (3,739,908)
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(1,587,908)
167,004 - 5,339,638
409,304 - 28,286,774
$ 576,308 $ - $ 33,626,412
95
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
State Gas Tax
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Transfers in
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public works
Transfers out
Total charges to
appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 1,918,063 $ 1,918,063
2,083,011
8,000
600,000
4,609,074
1,747,140
940,211
2,687,351
$ 1,921,723
2,091,011
8,000
600,000
4,617,074
1,758,759
1,956,659
3,715,418
Actual
Amounts
$ 1,918,063
1,809,499
16,360
600,000
Variance with
Final Budget
Positive
(Negative)
$
(281,512)
8,360
4,343,922 (273,152)
1,308,114
248,723
450,645
1,707,936
1,556,837 2,158,581
$ 901,656 $ 2,787,085 $ 1,885,429
96
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Library and Museum
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Miscellaneous revenue
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Community services
Capital outlay
Transfers out
Total charges to
appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 9,972,160 $ 9,972,160
2,800,000
60,000
7,000
12,839,160
1,904,146
5,000
1,909,146
$ 10,930,014
2,800,000
60,000
7,000
Actual
Amounts
$ 9,972,160
3,531,533
129,944
2,602
Variance with
Final Budget
Positive
(Negative)
$
731,533
69,944
(4,398)
12,839,160 13,636,239 797,079
4,761,601
5,000
4,766,601
1,966,150 2,795,451
5,000
122,382 (122,382)
2,088,532 2,678,069
$ 8,072,559 $ 11,547,707 $ 3,475,148
97
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Federal Assistance
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 2,128 $ 2,128 $ 2,128 $
Resources (Inflows)
Intergovernmental 156,000 391,126 181,574 (209,552)
Use of money and property 26 26
Amounts available for
appropriations
158,128 393,254
183,728 (209,526)
Charges to Appropriation (Outflows)
Public works 20,000 20,000 3,315 16,685
Transfers out 132,600 367,726 178,259 189,467
Total charges to
appropriations
152,600 387,726
181,574 206,152
Budgetary Fund Balance, June 30 $ 5,528 $ 5,528 $ 2,154 $ (3,374)
98
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
SLESA
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 377,403 $ 377,403 $ 377,403 $
Resources (Inflows)
Intergovernmental
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public safety
100,000 100,000 165,271 65,271
1,000 1,000 4,650 3,650
478,403 478,403 547,324 68,921
100,000 100,000 65,558 34,442
Budgetary Fund Balance, June 30 $ 378,403 $ 378,403 $ 481,766 $ 103,363
99
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Lighting and Landscaping
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 618,904 $ 618,904 $ 618,904 $
Resources (Inflows)
Assessments 982,300 982,300 981,315 (985)
Use of money and property 1,000 1,000 7,098 6,098
Miscellaneous 23,499 23,499
Transfers in 1,500,000 1,500,000 1,500,000
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public works
3,102,204 3,102,204
2,465,376 2,710,631
3,130,816 28,612
2,576,738 133,893
Budgetary Fund Balance, June 30 $ 636,828 $ 391,573 $ 554,078 $ 162,505
100
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Quimby
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (713,669) $ (713,669) $ (713,669) $
Resources (Inflows)
Developer participation 25,000 25,000 (25,000)
Amounts available for
appropriations
(688,669) (688,669)
Charges to Appropriation (Outflows)
Transfers out 466,967
(713,669) (25,000)
21,791 445,176
Budgetary Fund Balance, June 30 $ (688,669) $ (1,155,636) $ (735,460) $ 420,176
101
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
La Quinta Public Safety Officer
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 50,383 $ 50,383 $ 50,383 $
Resources (Inflows)
Use of money and property 200 200 757 557
Transfers in 2,000 2,000 2,000
Amounts available for
appropriations
52,583 52,583
53,140 557
Budgetary Fund Balance, June 30 $ 52,583 $ 52,583 $ 53,140 $ 557
102
City of La Quinta, California
Budgetary Comparison Schedule - Special Revenue Fund
Art in Public Places
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 833,697 $ 833,697 $ 833,697 $
Resources (Inflows)
Use of money and property 3,000 3,000 12,626 9,626
Developer participation 100,000 100,000 83,086 (16,914)
Transfer In 50,000 50,000 50,000
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Community services
Capital outlay
Transfers out
Total charges to
appropriations
986,697 986,697
77,000
100,000
979,409 (7,288)
77,000 59,627 17,373
136,700 48,347 88,353
212,465 75 212,390
177,000 426,165 108,049 318,116
Budgetary Fund Balance, June 30 $ 809,697 $ 560,532 $ 871,360 $ 310,828
103
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
South Coast Air Quality
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Planning and development
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 36,984 $ 36,984 $ 36,984 $
54,000 54,000 101,757 47,757
400 400 306 (94)
91,384 91,384
46,500 46,500
139,047 47,663
52,827 (6,327)
Budgetary Fund Balance, June 30 $ 44,884 $ 44,884 $ 86,220 $ 41,336
104
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
AB 939
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 812,576 $ 812,576 $ 812,576 $
Resources (InFlows)
Taxes
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Planning and development
Total charges to
appropriations
60,000 60,000 84,847 24,847
4,000 4,000 14,120 10,120
876,576 876,576
150,000 150,000
150,000 150,000
911,543 34,967
180,543 (30,543)
180,543 (30,543)
Budgetary Fund Balance, June 30 $ 726,576 $ 726,576 $ 731,000 $ 4,424
105
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Housing Grants
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (123,215) $ (123,215) $ (123,215)
$
Resources (Inflows)
Intergovernmental - - 160,000 160,000
Amounts available for
appropriations (123,215) (123,215) 36,785 160,000
Charges to Appropriation (Outflows)
Planning and development
90,000 97,052 (7,052)
Total charges to
appropriations 90,000 97,052 (7,052)
Budgetary Fund Balance, June 30 $ (123,215) $ (213,215) $ (60,267) $ 152,948
106
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Law Enforcement
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 236,329 $ 236,329 $ 236,329
Resources (Inflows)
Intergovernmental
Use of money and property
Miscellaneous revenue
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public safety
Transfers out
Total charges to
appropriations
$
4,896 4,896
2,100 2,100 4,530 2,430
17,000 17,000 (17,000)
255,429 255,429 245,755 (9,674)
17,000 17,000 29,366 (12,366)
49,296 (49,296)
17,000 17,000
78,662 (61,662)
Budgetary Fund Balance, June 30 $ 238,429 $ 238,429 $ 167,093 $ (71,336)
107
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Measure A
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 4,740,269 $ 4,740,269 $ 4,740,269 $
Resources (Inflows)
Taxes 1,865,000 1,865,000 2,036,268 171,268
Use of money and property 10,000 10,000 65,996 55,996
Miscellaneous revenue -
Amounts available for
appropriations
6,615,269 6,615,269
6,842,533 227,264
Charges to Appropriation (OutFlows)
Public works - 33,703 (33,703)
Transfers out 3,882,000 5,843,145 2,694,735 3,148,410
Total charges to
appropriations
3,882,000 5,843,145
2,728,438 3,114,707
Budgetary Fund Balance, June 30 $ 2,733,269 $ 772,124 $ 4,114,095 $ 3,341,971
108
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Economic Development
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Planning and development
Total charges to
appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$
3,156,859 $ 3,156,859
15,000 15,000
3,171,859 3,171,859
21,500 21,500
21,500 21,500
$
3,156,859 $
129,615 114,615
3,286,474 114,615
3,000 18,500
3,000 18,500
Budgetary Fund Balance, June 30 $ 3,150,359 $ 3,150,359 $ 3,283,474 $ 133,115
109
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
AB 1379
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 66,444 $ 66,444 $ 66,444 $
Resources (Inflows)
Intergovernmental 20,000 20,000 19,231 (769)
Use of money and property 200 200 827 627
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Planning and development
Budgetary Fund Balance, June 30
86,644 86,644
5,500 5,500
86,502 (142)
1,923 3,577
$ 81,144 $ 81,144 $ 84,579 $ 3,435
110
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Capital Improvement
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (990,472) $ (990,472) $ (990,472) $
Resources (Inflows)
Intergovernmental - 22,057,829 391,120 (21,666,709)
Developer participation 921,527 420 (921,107)
Transfers in 13,136,811 56,493,897 7,927,550 (48,566,347)
Amounts available for
appropriations
12,146,339 78,482,781
7,328,618 (71,154,163)
Charges to Appropriation (Outflows)
Planning and development - 2,591,436 33,757 2,557,679
Capital outlay 13,136,811 75,821,693 13,394,469 62,427,224
Total charges to
appropriations
13,136,811 78,413,129 13,428,226 64,984,903
Budgetary Fund Balance, June 30 $ (990,472) $ 69,652 $ (6,099,608) $ (6,169,260)
111
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Maintenance Facilities DIF Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 180,094 $ 180,094 $ 180,094 $
Resources (Inflows)
Use of money and property 500 500 1,277 777
Developer participation 75,000 75,000 130,312 55,312
Amounts available for
appropriations
255,594 255,594
311,683 56,089
Budgetary Fund Balance, June 30 $ 255,594 $ 255,594 $ 311,683 $ 56,089
112
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Infrastructure
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Amounts available for
appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 18,949 $ 18,949 $ 18,949 $
100 100 293 193
19,049 19,049 19,242 193
Budgetary Fund Balance, June 30 $ 19,049 $ 19,049 $ 19,242 $ 193
113
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Civic Center
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,126,530 $ 1,126,530 $ 1,126,530 $
Resources (Inflows)
Use of money and property 1,000 1,000 10,624 9,624
Developer participation 300,000 300,000 530,615 230,615
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Transfers Out
Total charges to
appropriations
1,427,530 1,427,530
1,667,769 240,239
250,000 250,000 75 249,925
250,000 250,000 75 249,925
Budgetary Fund Balance, June 30 $ 1,177,530 $ 1,177,530 $ 1,667,694 $ 490,164
114
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Transportation
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Developer participation
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public works
Transfers out
Total charges to
appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 4,503,469 $ 4,503,469
20,000
1,000,000
5,523,469
400,000
100,000
500,000
$ 5,023,469
20,000
1,000,000
5,523,469
400,000
1,516,757
1,916,757
Actual
Amounts
$ 4,503,469
55,045
1,755,485
Variance with
Final Budget
Positive
(Negative)
35,045
755,485
6,313,999 790,530
400,000
395,857 1,120,900
795,857 1,120,900
$ 3,606,712 $ 5,518,142 $ 1,911,430
115
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Parks and Recreation
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 674,268 $ 674,268 $ 674,268 $
Resources (Inflows)
Use of money and property
Developer participation
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Transfers out
Total charges to
appropriations
1,000 1,000 (2,777) (3,777)
500,000 500,000 966,433 466,433
1,175,268 1,175,268
500,000 500,000
1,637,924 462,656
28,715 471,285
500,000 500,000 28,715 471,285
Budgetary Fund Balance, June 30 $ 675,268 $ 675,268 $ 1,609,209 $ 933,941
116
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Library Development
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Developer participation
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
(1,273,276) $ (1,273,276) $ (1,273,276)
75,000 75,000
(1,198,276) (1,198,276)
15,000 15,000
180,153 105,153
(1,093,123) 105,153
25,504 (10,504)
Budgetary Fund Balance, June 30 $ (1,213,276) $ (1,213,276) $ (1,118,627) $ 94,649
117
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Community Center
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 573,841 $ 573,841 $ 573,841 $
Resources (Inflows)
Use of money and property
Developer participation
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Transfers out
2,000 2,000 4,745 2,745
150,000 150,000 401,734 251,734
725,841 725,841
980,320 254,479
125,000 125,000
Budgetary Fund Balance, June 30 $ 725,841 $ 600,841 $ 980,320 $ 379,479
118
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Street Facility
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 75,785 $ 75,785 $ 75,785 $
Resources (Inflows)
Use of money and property - - 1,116 1,116
Developer participation 10,000 10,000 3,360 (6,640)
Amounts available for
appropriations
85,785 85,785
80,261 (5,524)
Budgetary Fund Balance, June 30 $ 85,785 $ 85,785 $ 80,261 $ (5,524)
119
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Park Facility
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 5,898 $ 5,898 $ 5,898 $
Resources (Inflows)
Use of money and property - - 61 61
Developer participation - 1,600 1,600
Amounts available for
appropriations
5,898 5,898
7,559 1,661
Budgetary Fund Balance, June 30 $ 5,898 $ 5,898 $ 7,559 $ 1,661
120
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Fire Facility
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 409,304 $ 409,304 $ 409,304 $
Resources (Inflows)
Use of money and property 1,000 1,000 4,081 3,081
Developer participation 100,000 100,000 162,923 62,923
Amounts available for
appropriations
510,304 510,304
576,308 66,004
Budgetary Fund Balance, June 30 $ 510,304 $ 510,304 $ 576,308 $ 66,004
121
City of La Quinta, California
Budgetary Comparison Schedule — Debt Service Fund
Financing Authority
Year Ended June 30, 2023
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
General government
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ - $
$ - $
1,100 1,100 907 (193)
1,100 1,100 907 (193)
1,100 1,100 907 193
$
122
City of La Quinta, California
Internal Service Funds
Year Ended June 30, 2023
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 —To account for the operational maintenance and ultimate replacement of City
owned and operated vehicles and equipment.
Information Technology Fund — To account for the purchase and replacement of information systems.
Park Equipment and Facilities Fund —To account for the purchase and replacement of City owned and operated
park equipment and facilities.
Insurance Fund — To account for the City's insurance coverage.
123
City of La Quinta, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Governmental Activities - Internal Service Funds
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Assets
Current
Pooled cash and investments $ 4,206,434 $ 2,997,084 $ 3,770,268 $ 611,912 $ 11,585,698
Receivables
Accrued interest 3,726 2,655 3,340 542 10,263
Prepaid costs - 252,053 1,002 253,055
Total current assets 4,210,160 3,251,792 3,773,608 613,456 11,849,016
Noncurrent
Capital assets - net 1,896,836 160,972 11,340,555 - 13,398,363
Right to use leased assets,
net of accumulated amortization 33,108 - - - 33,108
Right to use subscription IT assets,
net of accumulated amortization - 592,321 - - 592,321
Total noncurrent assets 1,929,944 753,293 11,340,555 - 14,023,792
Total assets 6,140,104 4,005,085 15,114,163 613,456 25,872,808
Liabilities
Current
Accounts payable 13,146 221,464 393,768 865 629,243
Accrued liabilities 12,281 - 12,281
Accrued interest 51 51
Current portion of leases 31,159 31,159
Current portion of subscription IT arrangement - 352,117 352,117
Total current liabilities 44,356 585,862 393,768 865 1,024,851
Noncurrent
Long-term portion of leases 5,303 - 5,303
Long-term portion of subscription IT arrangement - 143,557 - - 143,557
Total noncurrent liabilities 5,303 143,557 148,860
Total liabilities 49,659 729,419 393,768 865 1,173,711
Net Position
Net investment in capital assets 1,893,482 257,619 11,340,555 - 13,491,656
Unrestricted 4,196,963 3,018,047 3,379,840 612,591 11,207,441
Total net position 6,090,445 3,275,666 14,720,395 612,591 24,699,097
Total liabilities and net position $ 6,140,104 $ 4,005,085 $ 15,114,163 $ 613,456 $ 25,872,808
124
City of La Quinta, California
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2023
Operating Revenues
Sales and service charges
Total operating revenues
Operating Expenses
Administration and general
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation and
amortization expense
Total operating expenses
Operating Income (Loss)
Nonoperating Revenue (Expenses)
Investment income
Net decrease in fair value of
investments
Miscellaneous revenue
Gain on disposal of capital assets
Interest expense
Total nonoperating revenues
Changes in Net Position
Net Position
Beginning of Year, as restated
End of Year
Governmental Activities - Internal Service Funds
Equipment
Replacement
$ 1,664,000
Information
Technology
Park
Equipment and
Facilities Insurance
Totals
$ 2,263,132 $ 450,000 $ 1,020,000 $ 5,397,132
1,664,000 2,263,132
450,000
1,020,000 5,397,132
(3,410) 43,788 - 191,839
138,412 - - -
392,721 - - -
569,598 749,485 -
441,845 - 770,046
532,821 498,796 526,934 -
1,060,544 1,554,027 1,276,419 961,885
603,456 709,105 (826,419) 58,115
82,866 57,513 80,886 7,922
(33,905) (30,592) (19,260) (7,114)
208,148 - - -
189,571 44,601 - -
(1,253) (20,490) - -
445,427 51,032 61,626 808
1,048,883 760,137 (764,793) 58,923
5,041,562 2,515,529 15,485,188
232,217
138,412
392,721
1,319,083
1,211,891
1,558,551
4,852,875
544,257
229,187
(90,871)
208,148
234,172
(21,743)
558,893
1,103,150
553,668 23,595,947
$ 6,090,445 $ 3,275,666 $ 14,720,395 $ 612,591 $ 24,699,097
125
City of La Quinta, California
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2023
Governmental Activities - Internal Service Funds
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Operating Activities
Cash received from interfund services provided $ 1,664,000 $ 2,263,132 $ 450,000 $ 1,020,000 $ 5,397,132
Cash paid to suppliers for goods and services (578,215) (1,067,760) (357,759) (839,170) (2,842,904)
Net Cash from Operating Activities 1,085,785 1,195,372 92,241 180,830 2,554,228
Capital and Related Financing Activities
Cash paid for lease liability- principal portion (98,772) - (98,772)
Cash paid for lease liability- interest portion (1,372) - - - (1,372)
Capital contributions 208,148 208,148
Acquisition and construction of capital assets (862,176) (117,894) (146,433) - (1,126,503)
Proceeds from sales of capital assets 189,571 44,601 - 234,172
Cash paid for subscription liability- principal portion - (431,239) (431,239)
Cash paid for subscription liability- interest portion - (9,848) - - (9,848)
Net Cash used for Capital and
Related Financing Activities (564,601) (514,380) (146,433) (1,225,414)
Investing Activities
Investment Income 47,459 15,082 60,671 539 123,751
Net Cash from Investing Activities 47,459 15,082 60,671 539 123,751
Net Change in Cash and Cash Equivalents 568,643 696,074 6,479 181,369 1,452,565
Cash and Cash Equivalents, Beginning of Year 3,637,791 2,301,010 3,763,789 430,543 10,133,133
Cash and Cash Equivalents, End of Year $ 4,206,434 $ 2,997,084 $ 3,770,268 $ 611,912 $ 11,585,698
Reconciliation of operating income to net cash
from (used for) operating activities
Operating income (loss) $ 603,456 $ 709,105 $ (826,419) $ 58,115 $ 544,257
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities
Depreciation/amortization 532,821 498,796 526,934 - 1,558,551
Changes in
Prepaid costs - (147,119) 123,586 (23,533)
Accounts payable (50,492) 123,725 391,726 (871) 464,088
Accrued liabilities - 10,865 10,865
Total adjustments 482,329 486,267 918,660 122,715 2,009,971
Net Cash from Operating Activities $ 1,085,785 $ 1,195,372 $ 92,241 $ 180,830 $ 2,554,228
Non -Cash Transactions
Capital assets acquired by lease $ - $ 116,966 $ - $ - $ 116,966
126
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Statistical Section
June 30, 2023
City of La Quinta, California
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City of La Quinta, California
Statistical Section
Year Ended June 30, 2023
This part of the City of La Quinta's annual 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 City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how
the City's financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property taxes.
Debt Capacity
These schedules present information to help the reader assess the affordability
of the City's current levels of understanding debt and the City's ability to use
additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place and to help make comparisons over time and with other governments.
Operating Information
These schedules contain information about the City's operations and resources
to help the reader understand how the City's financial information relates to
the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules are derived from the
annual comprehensive financial reports for the relevant year.
128
140
149
156
159
127
City of La Quinta, California
Net Position by Component (Table 1)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017 2018
Governmental Activities
Net investment in capital assets $ 527,614,666 $ 523,495,389 $ 516,499,682 $ 517,039,487 $ 510,913,594
Restricted 53,669,248 62,472,221 61,148,731 38,824,860 39,204,789
Unrestricted 83,907,046 74,362,189 84,439,071 118,125,125 130,950,644
Total Governmental Activities Net Positior 665,190,960 660,329,799 662,087,484 673,989,472 681,069,027
Business -Type Activities
Net investment in capital assets 41,354,565 44,118,111 43,898,784 43,836,868 43,585,880
Unrestricted (4,674,666) (4,892,647) (5,086,906) (5,140,966) (5,203,212)
Total Business -Type Activities Net Positio 36,679,899 39,225,464 38,811,878 38,695,902 38,382,668
Primary Government
Net investment in capital assets 568,969,231 567,613,500 560,398,466 560,876,355 554,499,474
Restricted 53,669,248 62,472,221 61,148,731 38,824,860 39,204,789
Unrestricted 79,232,380 69,469,542 79,352,165 112,984,159 125,747,432
Total Primary Government Net Position 701,870,859 699,555,263 700,899,362 712,685,374 719,451,695
Source: City of La Quinta
128
City of La Quinta, California
Net Position by Component (Table 1)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
Governmental Activities:
$ 519,221,969 $ 509,777,422 $ 519,203,177 $ 517,697,036 $ 532,627,757 Net investment in capital assets
44,815,499 46,001,248 46,711,801 54,412,355 62,283,620 Restricted
138,584,041 142,418,499 162,887,430 190,618,323 220,277,110 Unrestricted
702,621,509 698,197,169 728,802,408 762,727,717 815,188,487 Total Governmental Activities Net Position
43,375,536
240,125
39,712,955
3,145,820
43, 615, 661 42, 858, 775
42,717,914
368,750
42,491,762
1,036,834
43,086,664 43,528,596
Business -Type Activities:
42,242,526 Net investment in capital assets
1,166,307 Unrestricted
43,408,833 Total Business -Type Activities Net Position
Primary Government:
562,597,505 549,490,377 561,921,091 560,188,798 574,870,283 Net investment in capital assets
44,815,499 46,001,248 46,711,801 53,601,581 62,283,620 Restricted
138,824,166 145,564,319 163,256,180 192,465,934 221,443,417 Unrestricted
746,237,170 741,055,944 771,889,072 806,256,313 858,597,320 Total Primary Government Net Position
129
City of La Quinta
Changes in Net Position (Table 2)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017 2018
Expenses
Govemmental activities:
General government $ 4,830,239 $ 5,166,732 $ 5,645,004 $ 5,565,727 $ 8,869,174
Public safety 21,169,423 21,636,149 22,067,603 23,378,824 22,508,088
Planning and development 3,098,015 2,212,013 3,359,732 2,882,321 4,352,134
Community services 4,130,085 5,992,362 6,214,098 6,584,268 9,231,268
Public works 12,610,994 18,116,732 12,157,245 10,927,160 15,580,975
Interest on long-term debt 405,977 340,716 343,129 309,463 1,468,971
Total govemmental activities expenditures 46,244,733 53,464,704 49,786,811 49,647,763 62,010,610
Business -type activities:
Golf course 4,971,977 5,053,360 4,373,586 3,965,644 4,318,463
Total business -type activities expenditures 4,971,977 5,053,360 4,373,586 3,965,644 4,318,463
Total Primary Government Expenditures 51,216,710 58,518,064 54,160,397 53,613,407 66,329,073
Program Revenues
Governmental activities:
Charges for services:
General govemment
Public safety
Planning and development
Community services
Public works
Operating grants and contributions
Capital grants and contributions
Total govemmental activities program revenues
Business -type activities:
Charges for services:
Golf course
Capital grants and contributions
Total business -type activities program revenues
Total Primary Government Program Revenues
Net Revenues (Expenditures):
Govemmental activities
Business -type activities
Total Net Revenues (Expenditures)
71,042
1,412,819
595,980
1,224,719
1,195,703
14,587,153
3,981,286
121,140
1,655,421
489,589
307,869
1,197,069
16,829,107
3,536,444
192,538
1,378,704
467,053
386,824
1,134,630
12,213,338
1,076,145
504,127
341,368
564,327
453,098
741,703
6,187,803
3,316,153
883,153
367,848
724,499
442,656
1,054,902
4,259,916
4,455,060
23,068,702 24,136,639 16,849,232 12,108,579 12,188,034
3,481,424 3,561,857 3,621,495 3,446,340 3,567,718
2,872,122 - - -
3,481,424 6,433,979 3,621,495 3,446,340 3,567,718
26,550,126 30,570,616 20,470,727 15,554,919 15,755,752
(23,176,031) (29,328,065) (32,937,579) (37,539,184) (49,822,576)
(1,490,553) 1,380,619 (752,091) (519,304) (750,745)
(24,666,584) (27,947,446) (33,689,670) (38,058,488) (50,573,321)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property taxes 9,193,753 8,776,491 8,798,296 15,521,335 15,887,015
Transient occupancy taxes 6,307,737 6,637,183 7,835,745 9,433,970 10,752,788
Sales tax 8,786,819 8,873,008 9,107,046 10,060,305 18,956,985
Franchise taxes 1,688,263 1,861,453 1,799,938 1,815,491 1,977,179
Business license taxes 307,654 306,087 334,465 365,451 345,187
Other taxes 580,834 530,336 516,964 585,333 718,472
Motor vehicle in lieu, unrestricted 3,291,042 3,486,367 3,651,549 3,813,213 3,941,348
Investment income 2,190,357 1,981,343 2,390,468 442,710 803,654
Net Increase (Decrease) of Investment Fair Value
Miscellaneous 243,498 296,346 376,193 460,614 649,566
Special Item (interfund loan payoff) -
Extraordinary gain/loss on dissolution of RDA (6,402,450) - - 7,344,050 3,624,121
Transfers (500,000) (247,739) (115,400) (401,300) (434,000)
Total govemmental activities 25,687,507 32,500,875 34,695,264 49,441,172 57,222,315
Business -type activities:
Investment income 1,567 2,043 4,282 2,028 3,511
Net Increase (Decrease) of Investment Fair Value
Miscellaneous 678,046 915,164 218,823 - -
Transfers 500,000 247,739 115,400 401,300 434,000
Total business -type activities 1,179,613 1,164,946 338,505 403,328 437,511
Total Primary Government 26,867,120 33,665,821 35,033,769 49,844,500 57,659,826
Changes in Net Position
Govemmental activities
Business -type activities
Total Primary Govemment
Source: City of La Quinta
2,511,476 3,172,810 1,757,685 11,901,988 7,399,739
(310,940) 2,545,565 (413,586) (115,976) (313,234)
2,200,536 5,718,375 1,344,099 11,786,012 7,086,505
For fiscal 2018/19, there is a one-time entry for an interfund loan noted as a 'special item' under govemmental activites and 'miscellaneous' under business type activities. This is also dicussed in the
Notes to Basic Financial Statements section of the 2018/19 CAFR, Note 19: Special Item.
130
City of La Quinta
Changes in Net Position (Table 2)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
Expenditures:
Govemmental activities:
$ 9,085,863 $ 9,877,251 $ 8,106,209 $ 9,733,224 $ 17,213,248 General government
23,164,976 24,009,725 24,429,310 25,741,782 25,457,350 Public safety
5,913,321 5,845,836 6,508,522 4,716,745 3,146,264 Planning and development
6,202,084 11,362,950 6,958,234 8,439,863 9,550,001 Community services
4,430,519 32,248,031 11,438,197 14,985,480 14,043,797 Public works
210,941 98,049 42,081 11,914 25,504 Interest on long-term debt
49,007,703 83,441,842 57,482,553 63,629,008 69,436,164 Total governmental activities expenditures
Business -type activities:
Golf course
4,558,922 4,148,190 4,169,286 4,746,281 5,520,342 Total business -type activities expenditures
53,566,625 87,590,032 61,651,839 68,375,289 74,956,506 Total Primary Government Expenditures
4,558,922 4,148,190 4,169,286 4,746,281 5,520,342
Program Revenues:
Governmental activities:
Charges for services:
516,115 615,348 1,541,535 1,402,810 1,716,965 General government
376,249 367,277 770,760 648,914 555,423 Public safety
636,683 799,040 710,529 1,315,760 1,356,426 Planning and development
479,542 366,896 178,554 137,769 185,979 Community services
1,119,816 1,436,362 1,503,633 3,378,132 2,736,907 Public works
5,623,509 7,817,482 4,413,523 5,786,773 7,136,358 Operating grants and contributions
5,462,395 9,613,752 15,770,048 11,952,031 8,760,788 Capital grants and contributions
14,214,310 21,016,157 24,888,582 24,622,189 22,448,846 Total govemmental activities program revenues
Business -type activities:
Charges for services:
3,773,396 2,746,748 3,509,096 4,679,163 4,767,458 Golf course
Capital grants and contributions
3,773,396 2,746,748 3,509,096 4,679,163 4,767,458 Total business -type activities program revenues
17,987,706 23,762,905 28,397,678 29,301,352 27,216,304 Total Primary Government Program Revenues
Net Revenues (Expenditures):
(34,793,394) (62,425,685) (32,593,971) (39,006,040) (46,987,318) Govemmental activities
(785,526) (1,401,442) (660,190) (67,118) (752,884) Business -type activities
(35,578,920) (63,827,127) (33,254,161) (39,073,158) (47,740,202) Total Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
16,423,843 16,710,544 16,893,629 17,823,858 20,697,081 Property taxes
11,230,915 8,079,394 11,847,139 18,365,424 19,262,569 Transient occupancy taxes
20,905,243 19,136,015 23,323,549 28,204,906 28,888,079 Sales tax
2,032,848 1,996,593 2,055,505 2,240,468 2,375,729 Franchise taxes
418,707 378,744 383,551 446,745 489,738 Business license taxes
713,237 662,545 1,568,997 1,352,585 926,743 Other taxes
4,086,536 4,290,417 4,376,455 4,663,327 5,110,569 Motor vehicle in lieu, unrestricted
5,150,613 5,110,358 1,427,664 219,164 5,058,717 Investment income
(5,727,183) (1,519,171) Net Increase (Decrease) of Investment Fair Value
394,347 1,404,143 1,457,788 943,160 1,432,619 Miscellaneous
(5,553,561) - - - Special Item (interfund loan payoff)
993,148 867,792 739,933 609,515 - Extraordinary gain/loss on dissolution of RDA
(450,000) (635,200) (875,000) (550,000) (600,000) Transfers
56,345,876 58,001,345 63,199,210 68,591,969 82,122,673 Total governmental activities
14,958 9,356 13,081 4,329
(45,279)
5,553,561 -
450,000 635,200 875,000 550,000
6,018,519 644,556 888,081 509,050
62,364,395 58,645,901 64,087,291 69,101,019
12,456
20,665
600,000
633,121
82,755,794
Business -type activities:
Investment income
Net Increase (Decrease) of Investment Fair Value
Miscellaneous
Transfers
Total business -type activities
Total Primary Government
Changes in Net Position
21,552,482 (4,424,340) 30,605,239 29,585,150 35,135,355 Govemmental activities
5,232,993 (756,886) 227,891 441,932 (119,763) Business -type activities
26,785,475 (5,181,226) 30,833,130 30,027,082 35,015,592 Total Primary Government
131
City of La Quinta
Changes in Net Position - Governmental Activities (Table 3)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017 2018
Expenses
General government $ 4,830,239 $ 5,166,732 $ 5,645,004 $ 5,565,727 $ 8,869,174
Public safety 21,169,423 21,636,149 22,067,603 23,378,824 22,508,088
Planning and development 3,098,015 2,212,013 3,359,732 2,882,321 4,352,134
Community services 4,130,085 5,992,362 6,214,098 6,584,268 9,231,268
Public works 12,610,994 18,116,732 12,157,245 10,927,160 15,580,975
Interest on long-term debt 405,977 340,716 343,129 309,463 1,468,971
Total Governmental Activities Expenditures 46,244,733 53,464,704 49,786,811 49,647,763 62,010,610
Program Revenues
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
Net Revenues (Expenditures)
71,042 121,140 192,538 504,127 883,153
1,412,819 1,655,421 1,378,704 341,368 367,848
595,980 489,589 467,053 564,327 724,499
1,224,719 307,869 386,824 453,098 442,656
1,195,703 1,197,069 1,134,630 741,703 1,054,902
14,587,153 16,829,107 12,213,338 6,187,803 4,259,916
3,981,286 3,536,444 1,076,145 3,316,153 4,455,060
23,068,702 24,136,639 16,849,232 12,108,579 12,188,034
(23,176,031) (29,328,065) (32,937,579) (37,539,184) (49,822,576)
General Revenues and Other Changes in Net Position
Taxes:
Property taxes 9,193,753 8,776,491 8,798,296 15,521,335 15,887,015
Transient occupancy taxes 6,307,737 6,637,183 7,835,745 9,433,970 10,752,788
Sales tax 8,786,819 8,873,008 9,107,046 10,060,305 18,956,985
Franchise tax 1,688,263 1,861,453 1,799,938 1,815,491 1,977,179
Business license taxes 307,654 306,087 334,465 365,451 345,187
Other tax 580,834 530,336 516,964 585,333 718,472
Motor vehicle in lieu, unrestricted 3,291,042 3,486,367 3,651,549 3,813,213 3,941,348
Investment income 2,190,357 1,981,343 2,390,468 442,710 803,654
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets - - 376,193 460,614 649,566
Miscellaneous 243,498 296,346 -
Special item (interfund loan payoff)
Extraordinary gain/loss on dissolution of RDA (6,402,450) - 7,344,050 3,624,121
Transfers (500,000) (247,739) (115,400) (401,300) (434,000)
Total Governmental Activities 25,687,507 32,500,875 34,695,264 49,441,172 57,222,315
Changes in Net Position
Source: City of La Quinta
2,511,476 3,172,810 1,757,685 11,901,988 7,399,739
132
City of La Quinta
Changes in Net Position - Governmental Activities (Table 3)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
Expenditures:
$ 9,085,863 $ 9,877,251 $ 8,106,209 $ 9,732,445 $ 17,213,248 General government
23,164,976 24,009,725 24,429,310 25,741,782 25,457,350 Public safety
5,913,321 5,845,836 6,508,522 4,716,745 3,146,264 Planning and development
6,202,084 11,362,950 6,958,234 8,439,863 9,550,001 Community services
4,430,519 32,248,031 11,438,197 14,985,480 14,043,797 Public works
210,941 98,049 42,081 11,914 25,504 Interest on long-term debt
49,007,703 83,441,842 57,482,553 63,628,229 69,436,164 Total Governmental Activities Expenditures
516,115 615,348 1,541,535 1,402,810 1,716,965
376,249 367,277 770,760 648,914 555,423
636,683 799,040 710,529 1,315,760 1,356,426
479,542 366,896 178,554 137,769 185,979
1,119,816 1,436,362 1,503,633 3,378,132 2,736,907
5,623,509 7,817,482 4,413,523 5,786,773 7,136,358
5,462,395 9,613,752 15,770,048 11,952,031 8,760,788
14,214,310 21,016,157 24,888,582 24,622,189 22,448,846
Program Revenues:
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
(34,793,394) (62,425,685) (32,593,971) (39,006,040) (46,987,318) Net Revenues (Expenditures)
16,423,843
11, 230, 915
20,905,243
2,032,848
418,707
713,237
4,086,536
5,150, 613
394,347
(5,553,561)
993,148
(450,000)
16,710,544
8,079,394
19,136,015
1,996,593
378,744
662,545
4,290,417
5,110, 358
16,893,629
11,847,139
23,323,549
2,055,505
383,551
1,568,997
4,376,455
1,427,664
1,404,143 1,457,788
867,792
(635,200)
56,345,876 58,001,345
17,823,858
18,365,424
28,204,906
2,240,468
446,745
1,352,585
4,663,327
219,164
(5,727,183)
942,381
739,933 609,515
(875,000) (550,000)
63,199,210 68,591,190
General Revenues and other changes in
Net Position:
Taxes:
20,697,081 Property taxes
19,262,569 Transient occupancy taxes
28,888,079 Sales tax
2,375,729 Franchise tax
489,738 Business license taxes
926,743 Other tax
5,110,569 Motor vehicle in lieu, unrestricted
5,058,717 Investment income
(1,519,171) Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets
1,432,619 Miscellaneous
Special item (interfund loan payoff)
Extraordinary gain/loss on dissolution of RDA
(600,000) Transfers
82,122,673 Total Governmental Activities
21,552,482 (4,424,340) 30,605,239 29,585,150 35,135,355 Changes in Net Position
133
City of La Quinta
Changes in Net Position — Business -type Activities (Table 4)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017 2018
Expenses
Golf course $ 4,971,977 $ 5,053,360 $ 4,373,586 $ 3,965,644 $ 4,318,463
Total Business -Type Activities Expenditures 4,971,977 5,053,360 4,373,586 3,965,644 4,318,463
Program revenues
Charges for services:
Golf course 3,481,424 3,561,857 3,621,495 3,446,340 3,567,718
Capital grants and contributions 2,872,122 - -
Total Business -Type Activities Program Revenues 3,481,424 6,433,979 3,621,495 3,446,340 3,567,718
Net Revenues (Expenditures) (1,490,553) 1,380,619 (752,091) (519,304) (750,745)
General Revenues and Other Changes in Net Position
Investment income 1,567 2,043 4,282 2,028 3,511
Net Increase (Decrease) of Investment Fair Value -
Miscellaneous 678,046 915,164 218,823 -
Transfers 500,000 247,739 115,400 401,300 434,000
Total Business -Type Activities 1,179,613 1,164,946 338,505 403,328 437,511
Changes in Net Position (310,940) 2,545,565 (413,586) (115,976) (313,234)
Source: City of La Quinta
134
City of La Quinta
Changes in Net Position — Business -type Activities (Table 4)
Last Ten Fiscal Years
(Accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
Expenditures:
$ 4,558,922 $ 4,148,190 $ 4,169,286 $ 4,746,281 $ 5,520,342 Golf course
4,558,922 4,148,190 4,169,286 4,746,281 5,520,342 Total Business -Type Activities Expenditures
Program revenues:
Charges for services:
3,773,396 2,746,748 3,509,096 4,679,163 4,767,458 Golf course
Capital grants and contributions
3,773,396 2,746,748 3,509,096 4,679,163 4,767,458 Total Business -Type Activities Program Revenues
(785,526) (1,401,442) (660,190) (67,118) (752,884) Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
14,958 9,356 13,081 4,329 12,456 Investment income
- (45,279) 20,665 Net Increase (Decrease) of Investment Fair Value
5,553,561 - Miscellaneous
450,000 635,200 875,000 550,000 600,000 Transfers
6,018,519 644,556 888,081 509,050 633,121 Total Business -Type Activities
5,232,993
(756,886) 227,891
441,932 (119,763) Changes in Net Position
135
City of La Quinta
Fund Balances of Governmental Funds (Table 5)
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Fiscal Year
2014 2015 2016(1) 2017 2018
General fund
Nonspendable:
Prepaid costs $ 1,500 $ 15,653 $ 204,589 $ 10,578 $ 90,657
Land held for resale 8,320,000 8,320,000 8,320,000 8,320,000 8,320,000
Advances to other funds 15,163,183 14,943,098 14,974,800 15,022,660 14,954,085
Deposits 4,830 33,985
Due from Other Governments 34,976,516 26,715,575 25,105,681 29,154,040 29,611,707
Restricted for:
Section 115 Trust (Note 11)
Committed:
Emergency Reservel2) 16,034,995 15,372,600 15,576,000 16,534,000 -
Natural Disaster Reserve) - - 7,400,000
Economic Disaster Reserve) - - 8,140,000
Post retirement health benefite) 1,523,401 1,523,401 1,523,400 1,523,400
Capital Replacement Reservee2) 1,507,429 1,727,390 2,302,000 5,000,000
Cash Flow Reservei2) 2,836,820 3,843,150 3,894,000 4,134,000 5,000,000
Pension Trust(4) - 2,000,000
Carryovers 356,438 476,400 4,274,046 120,000 2,186,500
Assigned:
Continuing appropriations 209,000 -
Public Safety (Note 14) - 9,371,699 9,754,327
Sales Tax Reserve (Note 14) - 5,169,970
Capital Projects (Note 14) - - 6,322,570 4,996,815
Unassigned 10,699,641 13,837,312 13,822,012 16,949,526 19,199,506
Total general fund 91,633,753 86,808,564 98,565,571 107,462,473 121,823,567
All other governmental funds
Nonspendable:
Prepaid costs - 8,422 10,349
Restricted:
Planning and development projects 5,970,006 13,108,499 18,211,200 22,664,093 22,607,600
Public safety 274,274 301,843 189,988 83,506 342,919
Community services 12,459,516 10,711,704 9,872,124 10,040,222 10,016,652
Public works 1,571,163 1,129,697 1,250,827 1,546,505 2,033,627
Capital Projects 1,590,168 3,873,699 3,597,221 4,490,534 4,203,991
Unassigned (12,370,462) (12,703,744) (11,655,344) (11,423,008) _111,347,062)
Total all other governmental funds 9,494,665 16,421,698 21,474,438 27,412,201 27,857,727
Total Governmental Funds 101,128,418 103,230,262 120,040,009 134,874,674 149,681,294
Notes:
(1)In Fiscal Year 2016-17, the City recognized property tax held by the County of Riverside as available to fund current obligations and as such the
General Fund fund balance was adjusted up by 8,569,043 to 98,565,571. See Note 19 for FY 2016-17
(2) In Fiscal year 2017-18, the City adopted a reserves policy which modifed, added and/ or eliminated reserve category names. Emergency Reserves are
now split into Natural Disaster and Economic Disaster, Working Capital Reserve was re -named Cash Flow Reserve, and Capital Replacement and
Pension Trust were added.
(3) In Fiscal Year 2017-18 the City opened a trust for Other Post Employment Benefits (OPEB), and this reserve was deposited into the trust. See Note 10.
(4) In Fiscal Year 2018-19 the City opened a trust for Pension Benefits, and this reserve was deposited into the trust. See Note 11.
136
City of La Quinta
Fund Balances of Governmental Funds (Table 5)
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
General fund:
Nonspendable:
$ 37,182 $ 14,065 $ 25,246 $ 46,990 $ 125,993 Prepaid costs
5,730,990 5,403,652 5,403,652 5,403,652 5,403,652 Land held for resale
- - Advances to other funds
- - Deposits
27,915,770 26,069,742 24,070,622 21,915,347 19,600,793 Due from Other Governments
Restricted for:
6,540,000 10,249,738 11,381,922 10,137,888 5,317,487 Section 115 Trust (Note 11)
Committed:
- - Emergency Reservel2l
10,000,000 10,000,000 10,000,000 10,000,000 15,000,000 Natural Disaster Reservei2)
11,000,000 6,800,000 11,000,000 11,000,000 13,000,000 Economic Disaster Reservel2l
Post retirement health benefitsl3l
5,000,000 6,540,000 10,000,000 10,000,000 12,000,000 Capital Replacement Reservel�1
5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Cash Flow Reservel�1
Pension Trust(4)
745,300 1,778,800 1,209,870 1,209,100 2,600,009 Carryovers
Assigned:
- - Continuing appropriations
9,864,841 10,491,654 11,423,931 11,183,821 11,986,970 Public Safety (Note 14)
7,721,975 8,736,219 15,128,658 15,355,043 29,214,191 Sales Tax Reserve (Note 14)
11,853,162 13,155,144 13,431,089 30,761,847 22,623,372 Capital Projects (Note 14)
16,228,627 19,094,651 24,241,553 33,893,325 44,105,041 Unassigned
117,637,847 123,333,665 142,316,543 165,907,013 185,977,508 Total general fund
All other governmental funds:
Nonspendable.
386 2,875 1,019 96,590 468 Prepaid costs
Restricted:
22,996,435 23,680,641 24,751,443 25,118,552 27,585,913 Planning and development projects
1,391,721 1,607,101 931,352 1,073,419 1,278,307 Public safety
13,775,710 14,376,472 12,813,788 13,159,532 15,711,786 Community services
2,667,401 3,208,072 5,196,324 7,353,021 7,535,519 Public works
3,904,492 3,128,962 3,018,894 6,897,057 9,794,607 Capital Projects
(1,852,211) (5,175,243) (3,182,262) (2,483,120) (8,064,140) Unassigned
42,883,934 40,828,880 43,530,558 51,215,051 53,842,460 Total all other governmental funds
160,521,781 164,162,545 185,847,101 217,122,064 239,819,968 Total Governmental Funds
137
City of La Quinta
Changes in Fund Balances of Governmental Funds (Table 6)
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Fiscal Year
Revenues
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions, fines, and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital projects
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
Expenditures
Other financing sources (uses):
Proceeds from sale of land
Transfers in
Transfers out
Leases
Total Other Financing Sources (Uses)
Extraordinary gain/loss on dissolution of RDA
Special item (interfund loan payoff)
Net Change in Fund Balances
Debt Service as a Percentage of Noncapital
Expenditures (1)
2014 2015 2016
2017 2018
$ 27,192,089 $ 26,678,471 $ 28,057,989 $
951,181 940,221 944,050
953,540 1,356,978 1,161,820
16, 506, 666 15, 702, 943 14, 960, 676
1,238,277 1,341,438 1,332,541
2,175,048 1,950,957 7,475,742
838,972 1,956,452 28,459
3,059,254 2,803,681 1,441,075
575,001 580,843 992,282
53,490,028 53,311,984 56,394,634
41,832,117
953,699
1,118,911
4,870,334
1,021,336
4,659,301
348,345
1,042,568
289,047
$ 44,931,250
950,541
1,394,820
12,555,259
1,279,864
2,388,683
375,390
1,534,628
1,196,057
56,135,658 66,606,492
4,068,827 5,050,425 5,267,024 5,845,197 7,737,111
21,189,086 21,664,472 22,125,962 23,377,755 22,508,088
1,748,477 2,097,525 3,294,259 2,549,779 4,310,589
4,011,432 4,798,123 4,983,038 4,626,401 5,236,083
4,617,050 5,283,309 4,101,210 4,025,958 4,146,135
7,974,747 11,097,186 7,209,874 6,859,428 9,015,861
558,019 594,383 632,615 651,625 666,988
411,010 348,334 346,137 307,600 1,460,371
44,578,648 50,933,757 47,960,119 48,243,743 55,081,226
8,911,380 2,378,227 8,434,515 7,891,915 11,525,266
4,201,763
(4,335,679)
12,037,331
(12,322,714)
9,000
6,420,538
(6,614,349)
21,503,514
(21,904,814)
7,432,340
(7,775,107)
(133,916) (276,383) (193,811) (401,300) (342,767)
(6,402,450)
7,344,050
3,624,121
2,375,014 2,101,844 8,240,704 14,834,665 14,806,620
2.6% 2.2% 2.4% 2.5% 3.3%
Notes:
(1)The capitalizable expenditures were derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds and Note 4, Capital Assets.
138
City of La Quinta
Changes in Fund Balances of Governmental Funds (Table 6)
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Fiscal Year
2019
2020
2021
2022
$ 48,462,493 $ 44,881,038 $ 53,493,786 $ 65,107,160
961,633 957,017 984,435 969,257
1,555,026 1,913,519 2,020,596 4,521,449
14,075,980 17,107,595 25,720,328 15,989,135
1,170,825 1,179,592 964,710 1,623,951
4,824,651 5,219,088 2,601,482 (3,545,192)
375,491 665,193 779,606 657,589
2,231,471 1,863,587 1,844,665 5,584,146
2,425,675 1,371,095 645,780 970,399
76,083,245 75,157,724 89,055,388 91,877,894
2023
$ 67,267,115
981,315
3,994,989
16,353,942
1,558,784
4,592,365
563,494
4,216,121
2,602,248
102,130,373
10,129,408 7,732,495 8,464,230 10,515,771 20,967,405
23,164,976 24,009,725 24,429,310 25,741,782 25,457,350
6,415,466 5,436,281 6,544,477 5,234,065 6,503,091
5,944,200 6,159,707 5,583,420 6,325,904 8,063,457
4,219,461 5,421,606 5,287,280 5,654,080 6,470,613
9,096,460 23,150,511 18,219,385 7,167,446 14,180,312
650,000 - 10,705 10,764
178,080 28,868 15,133 11,914 25,504
59,798,051 71,939,193 68,543,235 60,661,667 81,678,496
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Contributions, fines, and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital projects
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
16,285,194 3,218,531 20,512,153 31,216,227 20,451,877 Expenditures
- 1,219,485 -
12,942,596 16,467,409 10,781,267 6,131,440 10,079,550
(13,826,890) (16,912,971) (11,568,281) (6,681,440) (10,679,550)
(884,294) (445,562) 432,471 (550,000) (600,000)
993,148 867,792 739,933 609,515
(5,553,561) -
10,840,487 3,640,761 21,684,557 31,275,742
2.03% 0.06%
Other financing sources (uses):
Proceeds from sale of land
Transfers in
Transfers out
Leases
Total Other Financing Sources (Uses)
- Extraordinary gain/loss on dissolution of RDA
- Special item (interfund loan payoff)
19,851,877 Net Change in Fund Balances
Debt Service as a Percentage of Noncapital
0.03% 0.06% 0.06% Expenditures i'i
139
City of La Quinta
Tax Revenue by Source (Table 7)
Last Ten Fiscal Years
Fiscal Property Transient Business Document
Year Tax() Occupancy Tax Sales Tax Franchise Tax License Tax Transfer Tax Total
2014 9,193,753 6,307,737 8,786,819 1,688,263 307,654 580,834 26,865,060
2015 8,776,491 6,637,183 8,873,008 1,861,453 306,087 530,336 26,984,558
2016 8,798,296 7,835,745 9,107,046 1,799,938 334,465 516,964 28,392,454
2017 15,521,335 9,433,970 10,060,305 1,815,491 365,451 585,333 37,781,885
2018 15,887,015 10,752,788 18,956,985 1,977,179 345,187 718,472 48,637,626
2019 16,423,843 11,230,915 20,905,243 2,032,848 418,707 713,237 51,724,793
2020 16,710,544 8,079,394 19,136,015 1,996,593 378,744 662,545 46,963,835
2021 16,893,629 11,847,139 23,323,549 2,055,505 383,551 1,568,997 56,072,370
2022 17,823,858 18,365,424 28,204,906 2,240,468 446,745 1,352,585 68,433,986
2023 20,697,081 19,262,569 28,888,079 2,375,729 489,738 926,743 72,639,939
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
Tax Revenue by Source
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
■ Property Tax(1) • Transient Occupancy Tax • Sales Tax • Franchise Tax • Business License Tax • Document Transfer Tax
Notes:
(1) Starting in 2017, the revenue collected by the County that is remitted to the City for fire services is included in the property tax number.
Source: City of La Quinta
140
City of La Quinta
Top 25 Bradley -Burns Sales Tax Producers (Table 8)
Current Year and Nine Years Ago
(in dollars)
Fiscal Year 2022-23
Business Name 11)
Arco AM PM
Best Buy
Circle K
Cliffhouse
Costco
Floor & Decor
G&M Oil
Genesis/Hyundai of La Quinta
Hobby Lobby
Home Depot
In N Out Burger
Kohl's
La Quinta Chevrolet & Cadillac
La Quinta Resort & Club
Lowe's
Marshalls
PGA West Private Clubhouse
Ross
Target
TJ Maxx
Torre Nissan
Tower Mart
Ulta Beauty
Vons
Walmart Supercenter
Business Category
Service Stations
Electronics/Appliance Stores
Service Stations
Fine Dining
Discount Dept. Stores
Building Materials
Service Stations
New Motor Vehicle Dealers
Specialty Stores
Building Materials
Quick -Service Restaurants
Department Stores
New Motor Vehicle Dealers
Hotels/Motels
Building Materials
Family Apparel
Leisure/Entertainment
Family Apparel
Discount Dept. Stores
Family Apparel
New Motor Vehicle Dealers
Service Stations
Specialty Stores
Grocery Stores
Discount Dept. Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts:
64.81%
Fiscal Year 2013-14
Business Name (1)
Arco AM/PM
Bed Bath & Beyond
Best Buy
Chevrolet Cadillac of La Quinta
Circle K
Cliffhouse
Costco
G & M OiI
Hyundai of La Quinta
Home Depot
Kohl's
La Quinta Resort & Club
Lowe's
Marshalls
Ralphs
Ross
Stater Bros
Stein Mart
Stuft Pizza Bar & Grill
Target
Torre Nissan
Tower Mart
USA Gas
Vintners Shell Station
Walmart Supercenter
Business Category
Service Stations
Home Furnishings
Electronics/Appliance Stores
New Motor Vehicle Dealers
Service Stations
Fine Dining
Discount Dept. Stores
Service Stations
New Motor Vehicle Dealers
Building Materials
Department Stores
Hotels -Liquor
Building Materials
Family Apparel
Grocery Stores
Family Apparel
Grocery Stores
Department Stores
Casual Dining
Discount Dept. Stores
New Motor Vehicle Dealers
Service Stations
Service Stations
Service Stations
Discount Dept. Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts: 69.44%
Combined Sales Tax Revenue
(in millions)
Notes:
(1) Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account.
Top 25 businesses listed for state Bradley -Burns sales tax allocation only. For Top 25 business listings by local Measure G, see next page. Sales tax revenue chart
includes total remitted for both.
141
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City of La Quinta
Top 25 Measure G Sales Tax Producers (Table 9)
Current Year and Nine Years Ago
(in dollars)
Fiscal Year 2022-23 Fiscal Year 2013-14
Business Name (1) Business Category Business Name Business Category
Amazon Fulfillment Services General Merchandise
Amazon MFA General Merchandise
Best Buy Electronics/Appliance Stores
Circle K Service Stations
Costco Discount Dept. Stores
Dept. of Motor Vehicles Allocation Used Automotive Dealers
Desert European Motor Cars New Motor Vehicle Dealers
Ferrari of San Francisco New Motor Vehicle Dealers
Floor & Decor Building Materials
G & M Oil Service Stations
Home Depot Building Materials
Kohl's Department Stores
La Quinta Resort & Club Hotels/Motels
Lowe's Building Materials
Marshalls Family Apparel
Mathis Brothers Furniture Home Furnishings
PGA West Private Clubhouse Leisure/Entertainment
Ross Family Apparel
Target Discount Dept Stores
Tesla Motors New Motor Vehicle Dealers
TJ Maxx Family Apparel
Tower Mart Service Stations
Verizon Wireless Electronics/Appliance Stores
Vons Grocery Stores
Walmart Supercenter Discount Dept. Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts: 44.41 %
Measure G was passed in November 2016 and implemented on
April 1, 2017. Ten-year is data not available.
Notes:
(1) Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account.
Source: HdL, Coren & Cone
142
City of La Quinta
Taxable Sales by Category (1) (Table 10)
Last Ten Calendar Years
(in thousands)
Calendar Year
2013 2014 2015 2016 2017
Apparel stores $ 25,741 $ 25,461 $ 25,115 $ 26,280 $ 31,822
General merchandise 223,324 216,871 208,189 206,808 222,767
Food stores 26,394 25,748 22,845 25,359 25,964
Eating and drinking places 97,662 101,647 106,216 115,974 117,064
Building materials 68,606 73,087 75,658 78,299 83,383
Auto dealers and supplies 72,839 84,826 87,440 83,010 81,264
Service stations 52,093 47,541 40,777 34,566 37,558
Other retail stores 100,811 101,721 105,284 107,648 104,834
All other outlets 142,049 150,746 155,173 172,135 180,360
Total 809,519 827,648 826,697 850,079 885,016
Other retail stores
12%
All other outlets
18%
Taxable Sales
Calendar Year 2012
^Apparel stores
/ 3%
General merchandise
28%
Service stations
6%
Auto dealers and supplies
9%
Food stores
3%
Building materials/ L Eating and drinking places
9% 12%
Notes:
(1) Due to confidentiality issues preventing the disclosure of the largest sales tax payers by business name, this categorical list has been provided
as an alternative source of information regarding the City of La Quinta's sales tax revenue.
Source: HdL. Coren & Cone
143
City of La Quinta
Taxable Sales by Category (Table 10)
Last Ten Calendar Years
(in dollars)
Calendar Year
2018
2019
$ 34,508 $
232,147
26,126
122,255
86,569
82,702
42,164
114,980
210,360
951,811
Other retail st
11%
33,937
235,969
26,191
132,184
89,036
85,401
42,998
111,239
220,260
977,215
All other outlets
23%
2020
$ 24,929
235,841
30,610
100,187
111,231
78,189
33,742
101,620
222,916
939,265
2021
$ 38,612
274,045
30,350
149,526
128,048
105,011
46,985
140,854
260,247
1,173,678
Taxable Sales
Calendar Year 2021
^Apparel stores
/ 3%
2022
$ 39,992
300,399
32,324
169,175
135,282
100,165
56,830
139,870
298,944
1,272,981
Apparel stores
General merchandise
Food stores
Eating and drinking places
Building materials
Auto dealers and supplies
Service stations
Other retail stores
All other outlets
Total
General merchandise
24%
Food stores
3%
Service stations
4%
Auto dealers and
supplies
8%
Building materials
11%
Eating and drinking
places
13%
144
City of La Quinta
Assessed Value of Taxable Property (Table 11)
Last Ten Fiscal Years
(in dollars)
City of La Quinta, Tax District 02-2375
Fiscal Year Ended
June 30,
Unsecured Home Owner Taxable Assessed Direct Rate
Residential Commercial Agriculturel4 Other 11l Property (�) Exemption(5) Value (3)
2014 8,959,562,854 743,340,208 20,374,889 945,004,639 108,387,013 (167,489,253) 10,776,669,603 1.0000
2015 10,116,938,804 1,061,204,501 65,769,114 77,926,274 106,672,900 (49,232,400) 11,379,279,193 1.0000
2016 10,634,834,332 1,088,406,355 64,533,443 79,120,572 113,142,376 (49,130,200) 11,930,906,878 1.0000
2017 11,071,273,174 1,195,736,674 57,463,638 71,281,946 110,768,767 (49,088,200) 12,457,435,999 1.0000
2018 11,462,635,317 1,227,709,957 59,538,912 61,350,883 105,984,928 (49,700,000) 12,867,519,997 1.0000
2019 11,869,224,686 1,288,839,436 61,861,498 85,526,307 95,584,154 (49,298,200) 13,351,737,881 1.0000
2020 12,394,924,833 1,292,239,063 91,242,090 139,850,650 110,001,629 (47,938,800) 13,980,319,465 1.0000
2021 12,962,202,378 755,379,455 62,798,676 537,520,834 89,135,215 (47,271,000) 14,359,765,558 1.0000
2022 13,470,995,430 758,841,326 59,428,116 816,367,506 104,233,962 (46,243,400) 15,163,622,940 1.0000
2023 14,665,975,863 823,683,645 65,165,909 1,047,386,146 110,581,331 (45,703,000) 16,667,089,894 1.0000
$17,000
516,000
515,000
514,000
513,000
512,000
511,000
510,000
59,000
58,000
$7,000
$6,000
$5,000
54,000
$3,000
$2,000
51,000
50
Taxable Assessed Value
(in millions)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Notes:
(1) Other includes dry farm, government owned, institutional, irrigated, miscellaneous, recreational, vacant, cross reference, and unknown. Starting in 2016, prior years 2007 through 2015 were
adjusted to match current reporting categories for consistency.
(2) Prior years 2012 through 2015 adjusted to match current reporting for consistency.
(3) 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 which time the new assessed value is the purchase price of the property sold. The assessed valuation data shown above represents only the data currently available with respect
to the actual market value of taxable property and is subject to the limitations described above.
(4) In 2016 (and going forward) data will be obtained from California Municipal and The Auditor -Controller's Office. The existing column headers were slightly modified to accommodate the property
type classifications. The column labeled agriculture was formerly "industrial".
(5) Prior to 2015, this column also included Exempt Property Valuations
Source: : Cal Muni; County of Riverside Assessor Combined Tax Rolls Equalized Auditor and Assessor's Net; Riverside County Auditor -Controller
145
City of La Quinta
Direct and Overlapping Property Tax Rates (Table 12)
Last Ten Fiscal Years
(Rate per $100 of assessed value)
City Non -Project Area
2014(1) 2015(11 20161) 2017(1) 2018 2019 2020 2021 2022 2023
Direct Rates:
City of La Quinta 0.0760 0.0760 0.0760 0.0760 0.0760 0.0646 0.0646 0.0646 0.0646 0.0646
ERAF Share of La Quinta General Fund 0.0000 0.0000 0.0000 0.0000 0.0000 0.0113 0.0113 0.0113 0.0113 0.0113
Redevelopment Agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Redevelopment Agency Project Area 2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
County of Riverside 0.1958 0.1958 0.1958 0.1958 0.1958 0.0978 0.0978 0.0978 0.0978 0.0978
ERAF Share of County 0.0000 0.0000 0.0000 0.0000 0.0000 0.0980 0.0980 0.0980 0.0980 0.0980
County Free Library 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253
County Structure Fire Protection 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544
Coachella Valley Unified School District 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322
Desert Sands Unified School 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Desert Community College District 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698
Riverside County Office of Education 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380
Riverside County Regional Park & Open Spars 0.0039 0.0039 0.0039 0.0040 0.0040 0.0040 0.0040 0.0040 0.0040 0.0040
CV Public Cemetery 0.0031 0.0031 0.0031 0.0031 0.0031 0.0032 0.0032 0.0032 0.0032 0.0032
CV Mosquito & Vector Control 0.0127 0.0127 0.0126 0.0126 0.0126 0.0126 0.0127 0.0127 0.0127 0.0127
Desert Recreation District 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192
CVWD State Water Project 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254
CV Resource Conservation 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003
CVWD Improvement District 1 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118
CVWD Storni Water Unit 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321
Total Direct Rate 141 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
Tax Rate Area 020-005 020-005 020-005 020-160 020-160 020-160 020-160 020-160 020-160 020-160
Overlapping Rates j4j :
Coachella Valley Unified School District 0.1492 0.1492 0.1322 0.1660 0.1761 0.1495 0.1488 0.1455 0.1367 0.1345
Desert Sands Unified School 0.1095 0.1098 0.1092 0.0860 0.0725 0.0742 0.0738 0.0739 0.0750 0.0750
Coachella Valley Water District 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1100 0.1100
Desert Community College District 0.0200 0.0233 0.0209 0.0204 0.0403 0.0398 0.0398 0.0395 0.0395 0.0395
Total Overlapping Rate 0.3787 0.3823 0.3622 0.3724 0.3889 0.3635 0.3624 0.3589 0.3611 0.3590
Total Direct and Overlapping Rate
1.3787 1.3823 1.3622 1.3724 1.3889 1.3635 1.3625 1.3589 1.3612 1.3590
Notes:
(1) Direct rate from Tax Rate Area (TRA) 020-160 and overlapping rates provided by HdL, Coren & Cone; data source Riverside County Assessor 2012/13-2021/22 Annual Tax
Increment (Rate) Tables.
(2) Direct rate taken from an analysis of the TRA in the project area and does not include State ERAF deductions and overlapping rates provided by California Municipal Statistics
)3) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This 1% is shared by all taxing agencies for which the
subject property resides within.
(4) Overlapping rates are based upon a single tax rate area only.
Source: County of Riverside Auditor Controller's Office; HdL, Coren & Cone
146
City of La Quinta
Principal Property Taxpayers (Table 13)
Current Year and Nine Years Ago
(in dollars)
Fiscal Year 2022-23 Fiscal Year 2013-14
Percent of Percent of
Total City Total City
Taxable Taxable Taxable
Taxable Assessed Assessed Assessed Value Assessed
Taxpayer Rank Value (1) Value Rank (1) Value
HP LQ Investment LP 1 $ 211,499,603 1.27% 0.00%
The Hideaway Club 2 54,306,131 0.33% 0.00%
Inland American La Quinta Pavilion 3 51,784,882 0.31% 4 44,267,502 0.41%
HJ CG Partners 4 51,774,167 0.31% 0.00%
Hawthorn II Propco 5 47,159,732 0.28% 0.00%
Mediterra La Quinta Owner LLC 6 37,588,387 0.23% 0.00%
CM Wave Dev 7 36,155,993 0.22% 0.00%
Walmart Real Estate Business Trust 8 32,998,572 0.20% 8 28,905,663 0.27%
SilverRock Phase I LLC 9 32,580,882 0.20% 0.00%
Aventine Dev 10 28,217,348 0.17% 9 24,316,859 0.23%
LQR Golf LLC 1 187,262,071 1.74%
TD Desert Development LP 2 66,184,018 0.61%
East Of Madison 3 52,669,611 0.49%
Coral Option I 5 43,458,609 0.40%
Lennar Homes of California 6 30,530,804 0.28%
Town and Country Partners 7 30,170,000 0.28%
Costco Wholesale Corp 10 22,877,221 0.21%
Total $ 584,065,697 3.50% 530,642,358 4.92%
Principal Property Tax Payers
FY 2022-23
SilverRock Phase I LLC
Walmart Real Estate
Business Trust
CM Wave Dev/
Mediterra La Quinta
Owner LLC
Hawthorn II Propco_
HJ CG Partners'
Inland American La
Quinta Pavilion
HP LQ Investment LP
\_The Hideaway Club
(1) Taxable valuations include secured and unsecured
Source:
HdL, Goren & Cone; Riverside County Assessor 2013/14 and 2022/23 Combined Tax Rolls and the SBE Non -Unitary Tax Roll (Preliminary)
147
City of La Quinta
Property Tax Levies and Collections (Table 14)
Last Ten Fiscal Years
(in dollars)
Fiscal Year Ended
June 30
Collections within the Fiscal Year
of Levy Total Collections to Date
Taxes Levied Collections in
for the Fiscal Subsequent
Year (1) Amount Percent of Levy Years (2)
Amount (3)
Percent of
Levy
2014 5,814,571 5,808,387 99.89% 202,342 6,010,729 103.37%
2015 5,965,704 6,100,655 102.26% 170,306 6,270,961 105.12%
2016 6,657,414 6,420,215 96.44% 194,668 6,614,883 99.36%
2017 6,764,963 6,592,548 97.45% 137,921 6,730,469 99.49%
2018 6,868,411 6,717,291 97.80% 116,182 6,833,473 99.49%
2019 6,934,311 6,736,814 97.15% 126,876 6,863,690 98.98%
2020(4) 7,058,939 6,777,777 96.02% 156,792 6,934,570 98.24%
2021 7,139,091 6,891,637 96.53% 106,190 6,997,827 98.02%
2022 7,291,506 7,140,010 97.92% 163,569 7,303,579 100.17%
2023 7,925,552 7,845,743 98.99% 118,092 7,963,835 100.48%
Property Tax Collections
(in millions)
1
2014 2015 2016 2017 2018 2019 2020(4) 2021 2022 2023
Notes:
(1) Taxes Levied. The total tax levy is based on the Statement of Original Charge from the Riverside County Auditor -Controller Office. The amount
presented include City property taxes for tax districts 02-2374 and 02-2375 and are not inclusive of the redevelopment increment values.
(2) Collections in Subsequent Years. The City participates in the Riverside County Teeter program; the secured taxes are remitted in a series of
advances and settlement payments, the last of which is not received by the City until October of the subsequent year.
(3) Collections to Date. The total amount does not include any apportionment adjustments that are the result of successful appeals of a taxpayer
assessed valuation, escaped bills, refunds, or any other adjustments made by the County Auditor -Controller. As such, the percentage of the levy
collected may be higher or lower than expected.
Additionally, the increment values of the former Redevelopment Agency are allocated through a waterfall distribution process in accordance with
California Health and Safety Code 34183 and 34188, and are not reflected on the Statement of Original Charge.
(4)The statement of original charge that was posted on the the Auditor-Conroller (ACO) website had not been updated at time of publishing the
19/20 CAFR. The number reported in the 'taxes levied' column has now been adjusted to accurately reflect the ACO number, which subsequent)
changed the percent collected as well.
Source: County of Riverside Auditor Controller's Office
148
City of La Quinta
Ratios of Outstanding Debt by Type (Table 15)
Last Ten Fiscal Years
(in dollars)
Fiscal Year Ended
2014 2015 2016 2017 2018
Governmental Activities:
Leases $ 129,063 $ 103,869 $ 155,395 $ 530,163 $ 667,035
Financed Purchases -
USDA Loan 686,345 668,933 649,698 628,448
Provident Savings Loan 1,405,755 1,367,344 1,325,596 1,280,221
Notes Payable- Eisenhower Drive Property - 2,250,000 1,125,000
Subscription IT Liabilities -
City Hall Lease Revenue Bonds 2,930,000 2,405,000 1,850,000 1,265,000 650,000
Total Governmental 5,151,163 4,545,146 3,980,689 5,953,832 2,442,035
Business -type Activities:
Leases(1)
Total Business -Type Activities
Total Primary Government 5,151,163
Population - State Department of Finance January 1
Number of Households
Median Household Income
Percentage of Personal Income
Debt Per Capita
39,032
23,871
109,365
4,545,146 3,980,689
39,694
24,150
97,526
39,977
24,432
99,157
5,953,832 2,442,035
40,677
24,544
104,749
41,204
24,643
107,447
0.20% 0.19% 0.16% 0.23% 0.09%
132 115 100 146 59
Notes:
(1) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Leases for business -type activities were added in FY 2022 as a result of GASB 87.
Subscription IT Liabilities for governmental activities were added in FY 2023 as a result of GASB 96.
(2) Taxonomy changed from capital lease to leases.
Source: City of La Quinta; HDL, Coren & Cone
149
City of La Quinta
Ratios of Outstanding Debt by Type (Table 15)
Last Ten Fiscal Years
(in dollars)
Fiscal Year Ended
2019 2020 2021 2022 2023
Governmental Activities:
$ 757,971 $ 761,790 $ 418,050 $ 162,648 $ 53,111 Leases(2)
41,225 22,079 551 Financed Purchases
USDA Loan
Provident Savings Loan
Notes Payable- Eisenhower Drive Property
495,674 Subscription IT Liabilities(1)
- City Hall Lease Revenue Bonds
757,971 761,790 459,275 184,727 549,336 Total Governmental
757,971
761,790 459,275
Business -type Activities:
565,837 315,520 Leases111
565,837 315,520 Total Business -Type Activities
750,564 864,856 Total Primary Government
40,389 40,660 41,247 37,860 37,979 Population - State Department of Finance January 1
24,764 24,957 25,177 23,796 24,233 Number of Households
117,802 120,097 121,816 119,479 130,398 Median Household Income
0.03% 0.00% 0.01% 0.03% 0.03% Percentage of Personal Income
19 11 20 23 Debt Per Capita
Debt Per Capita
160
140 f!
120
100
80
60
40
20
32
2014
115
2015
100
2016
146
59
70
23
2017 2018 2019 2020 2021 2022 2023
150
City of La Quinta
Ratio of General Bonded Debt Outstanding (Table 16)
Last Ten Fiscal Years
(in dollars)
Outstanding General Bonded Debt (1)
Fiscal Year City Hall Percent of Per Median
Ended June Lease Local Agency Tax Allocation Assessed Household
30, Obligation Bonds Bonds Total Value (2) Income
2014 2,930,000 - 2,930,000 0.03% 27
2015 2,405,000 - 2,405,000 0.02% 20
2016 1,850,000 - 1,850,000 0.02% 45
2017 1,265,000 - 1,265,000 0.01% 31
2018 650,000 - 650,000 0.01% 6
2019 - - - 0.00%
2020 - - - 0.00%
2021 0.00%
2022 - 0.00%
2023 - 0.00%
General Bonded Debt as a Percent of Assessed Value
2.50% -------
2.00%
1.50%
1.00%
0.50%
0.03%
0.03% 0.02% 0.02% 0.01% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00%,
0.00% .11111' iiIMPP
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Notes:
(1) General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds
(of which the City has none)
(2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Source: City of La Quinta
151
City of La Quinta
Direct and Overlapping Debt (Table 17)
June 30, 2023
(in dollars)
Total Assessed Valuation l'l
$ 16,712,792,894
Percentage Outstanding Debt Estimated Share of
Applicable (2) 6/30/23 Overlapping Debt
Overlapping Debt (3)
Overlapping Tax and Assessment Debt
Desert Community College District 16.51% $ 486,615,000 $ 80,354,735
Coachella Valley Unified School District 50.87% 217,263,949 110,526,516
Desert Sands Unified School District (DSUSD) 20.32% 365,405,000 74,253,950
DSUSD Community Facilities District No. 1 88.91% 445,000 395,658
Coachella Valley Water District Assessment District 68 86.46% 665,000 574,926
Total Overlapping Tax and Assessment Debt 266,105,785
Overlapping General Fund Debt
Riverside County General Fund Obligations 4.62% $ 686,776,829 $ 31,694,751
Riverside County Pension Obligations 4.62% 748,540,000 34,545,121
Coachella Valley Unified School District Certificates of Participation (COP) 50.87% 37,188,380 18,918,473
Desert Sands Unified School District COP 20.32% 13,785,000 2,801,250
Desert Recreation District General Fund Obligations 26.86% 1,389,522 373,281
Total Overlapping General Fund Debt 88,332,876
Overlapping Tax Increment Debt
Successor Agencies 12.99% - 100% 459,067,321 282,940,743
Total Overlapping Tax Increment Debt
Total Gross Overlapping Debt 637,379,404
Less: Riverside County Supported Obligations
Total Net Overlapping Debt 637,379,404
Direct General Fund Debt
City of La Quinta General Fund Obligations
Total Direct General Fund Debt
Total Net Combined Direct and Overlapping Debt
Notes:
(1)Total assessed valuation is from the Equalized Assessor report which includes homeowner exemptions.
549,336 549,336
549,336
$ 637,928,740
(2) 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 the overlapping district's taxable assessed value that is within the city's boundaries divided by the district's total taxable assessed value.
(3) 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.
152
City of La Quinta
Legal Debt Margin Information (Table 18)
Last Ten Fiscal Years
(in dollars)
Fiscal Year
2014 2015 2016 2017 2018
Assessed valuation (1) $ 10,726,752,603 $ 11,369,346,292 $ 11,930,906,878 $ 12,457,435,999 $ 12,867,519,997
Conversion Percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation(2) 2,681,688,151 2,842,336,573 2,982,726,720 3,114,359,000 3,216,879,999
Debt limit percentage (`) 15% 15% 15% 15% 15%
Debt limit 402,253,223 426,350,486 447,409,008 467,153,850 482,532,000
Total net debt applicable to limit
General obligation bonds (3)
Legal debt margin $ 402,253,223 $ 426,350,486 $ 447,409,008 $ 467,153,850 $ 482,532,000
Total debt applicable to the limit
as a percentage of debt limit 0.0%
Notes:
0.0% 0.0%
(1)Assessed Valuation is from the Equalized Auditor's Net report which excludes the homeowner exemptions
0.0% 0.0%
(2) Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the
gross assessed valuation or property. However, this provision was enacted when assessed valuation was based on 25% of market value.
Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that
parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation
perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State. This is the equivalent of 3.75%
of the full assessed value.
(3) The City of La Quinta has no general bonded indebtedness.
153
City of La Quinta
Legal Debt Margin Information (Table 18)
Last Ten Fiscal Years
(in dollars)
Fiscal Year
2019 2020 2021 2022 2023
$ 13,351,737,881 $ 13,980,319,465 $ 14,359,765,558 $ 15,163,622,940 $ 16,667,089,894 Assessed valuation (1)
25% 25% 25% 25% 25%
3,337,934,470 3,495,079,866 3,589,941,390 3,790,905,735 4,166,772,474
15% 15% 15% 15% 15% Debt limit percentage (2)
500,690,171 524,261,980 538,491,208 568,635,860 625,015,871 Debt limit
Total net debt applicable to limit
- - General obligation bonds (3)
$ 500,690,171 $ 524,261,980 $ 538,491,208 $ 568,635,860 $ 625,015,871 Legal debt margin
Total debt applicable to the limit
0.0% 0.0% 0.0% 0.0% 0.0% as a percentage of debt limit
154
City of La Quinta
Pledged -Revenue Coverages�1 (Table 19)
Last Ten Fiscal Years
(in dollars)
Local Agency Revenue Bonds (City Hall Project)
Less Other
Fiscal Year Lease Debt Net Lease Debt Service Coverage
Ended June 30, Revenue (2) Payments Revenue Principal Interest Ratio (3)
2014 671,351 671,351 495,000 176,351 1.00
2015 673,046 - 673,046 525,000 148,046 1.00
2016 673,075 - 673,075 555,000 118,076 1.00
2017 671,441 - 671,441 585,000 86,441 1.00
2018 668,141 - 668,141 615,000 53,141 1.00
2019 668,038 668,038 650,000 18,038 1.00
2020 - - - -
2021 - - - -
2022 - - - -
2023 - - - -
Notes:
(1) Details regarding the city's outstanding debt can be found in the notes to the financial statements. The City of La Quinta
has no general bonded indebtedness.
(2) Lease revenue consist of payments from the City General Fund and Civic Center Development Impact Fee Fund.
(3) Coverage ratio is a measure of the City's ability to meet its obligation. A ratio of greater than or equal to one indicates that
sufficient revenue has been generated to satisfy the debt service requirements. The ratio is calculated as total available
revenue (net lease revenue) divided by total debt service requirements (principal and interest) .
Source: City of La Quinta
155
City of La Quinta
Demographic and Economic Statistics (Table 20)
Last Ten Calendar Years
Calendar Year
Sources 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Land (Sq Miles) (3) 35.16 35.71 35.71 35.71 35.71 35.71 35.71 35.71 35.71 35.71
Population (1)(3) 38,689 39,240 39,769 40,065 40,217 40,389 40,660 41,247 37,860 37,979
Mean Household Income (in dollars) (4) $109,365 $97,526 $99,157 $104,749 $107,447 $117,802 $120,097 $121,816 $119,479 $130,398
Number of Dwelling Units (1) 23,871 24,150 24,432 24,544 24,643 24,764 24,957 25,177 23,796 24,233
Persons per Household (1) 2.59 2.60 2.62 2.64 2.63 2.68 2.60 2.60 2.60 2.34
Per Capita Income (3) $42,226 $37,510 $37,846 $39,288 $39,999 $42,931 $46,248 $47,986 $52,632 $53,899
Labor Force (2) 16,983 17,483 18,033 18,617 18,917 19,142 19,267 19,083 19,850 19,942
Employment (2) 16,000 16,675 17,175 17,533 18,000 18,308 17,800 17,483 18,892 19,175
Unemployment Rate (2) 5.79% 4.62% 4.76% 5.82% 4.85% 4.36% 7.61% 8.44% 4.83% 3.85%
Median age (3) 44.8 45.1 45.3 45.7 46 46.4 47.1 47.9 48.6 49.6
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$o
27,000
24,500
22,000
19,500
17,000
Mean Household Income Unemployment Rate
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Number of Dwelling Units
24150
23,871
24,432
24,544
24,643
24,764
25,177
24,233
23,796
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
0.00%
I I0
I I
I I
I I
•
I I I
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$o
(
1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.0056 8.00% 9.001'
Per Capita Income and Unemployment
2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Income .Unemployment Rate
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2023
Sources:
(1) State of California Department of Finance; State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties and the State, Sacramento, California,
released May 2022. The estimates incorporate 2020 Census counts.
(2) State of California Employment Development Department Website. Previous years' data updated in 2018/19 to utilize 12 -month average and final numbers. Rise in average unemployment
rate for 2019/20 was due to double digit unemployment at end of fiscal year due to the Coronavirus pandemic.
(3) HdL, Coren & Cone
(4) Mean Household Income from US Census Bureau report Table S1901. Previously, calculated using "Persons per Household" mulitplied by "Per Capita Income". Starting in 2017, data is
from the US Census Bureau American Fact Finder.
156
City of La Quinta
Principal Employers (Table 21)
Current Year and Nine Years Ago
Fiscal Year 2022-23 Fiscal Year 2013-14
Percent of Percent of
Number of Total Number of Total
Employer Activity Employees Employment Rank Employees Employment
(')Desert Sands Unified School District Govemment 1 1000-4999 5.01-25.07% 3 1,180 7.92%
(2)PGA West and Citrus Club Golf Resort 1 1000-4999 5.01-25.07% 2 1,198 8.04%
La Quinta Resort Golf Resort 3 500-999 2.51-5.01% 1 1,250 8.39%
Costco Retailer 2 250-499 1.25-2.50% 5 246 1.65%
Wal-Mart Super Center Retailer 2 250-499 1.25-2.50% 4 352 2.36%
Eisenhower George & Julia Argyros Center Healthcare 3 100-249 0.50-1.25%
Hideaway Club Golf Resort 3 100-249 0.50-1.25%
Home Depot Retailer 3 100-249 0.50-1.25% 7 168 1.13%
Homesmart Professionals Real Estate 3 100-249 0.50-1.25%
Kohl's Retailer 3 100-249 0.50-1.25%
Lowe's Retailer 3 100-249 0.50-1.25% 8 153 1.03%
Madison Club Golf Resort 3 100-249 0.50-1.25%
Quarry at La Quinta Golf Resort 3 100-249 0.50-1.25%
Rancho La Quinta Golf Resort 3 100-249 0.50-1.25% 6 175 1.17%
Stater Bros Retailer 3 100-249 0.50-1.25% 10 114 0.77%
Target Retailer 3 100-249 0.50-1.25%
Traditions Properties Golf Resort 3 100-249 0.50-1.25%
Total employment listed
Total City Employment - July 1
4,200-14,983
19,942
21.06-75.13%
5,077 34.07%
14,900
Notes:
For fiscal year 2022-23, the City has changed the formatting of employment reporting to reflect a category 'range' that businesses fall into, rather than an exact
number. It was becoming increasingly difficult to obtain employment numbers from some local establishments as this is considered proprietary information.
Additionally, this data format matches what is reported by the EDD and sourced from Data Axle. Reporting in this manner reflects the true seasonality of many of the
jobs in our community, as employment at many of these firms is likely highest in the winter months when the population is at its peak.
(1)Desert Sands Unified employs approximately 4,000 people district -wide, of which the following locations are located in La Quinta: the District Administrative Offices,
La Quinta High School, La Quinta Middle School, Benjamin Franklin Elementary, and Truman Elementary
(2) PGA West and Citrus Club are accounted for as one entity and as such, their employment numbers are reported together; the combined entities account for 9 golf
courses, 5 clubhouses, 2 private clubs, and multiple restaurants.
Source: Data Axle, Linkedln, company websites, California EDD
157
sh
City of La Quinta
Full-time City Employees by Function (Table 22)
Last Ten Fiscal Years
Fiscal Year
Function 201411 2015 2016(2) 2017 2018 2019 2020 2021(3) 2022 2023
Administration -City Mgr. Office 8.00 7.00 4.00 4.00 5.00 7.00 8.00 8.00 8.00 8.00
City Clerk 4.00 4.00 3.00 3.00 5.00 5.00 4.00 4.00 4.00 6.00
Finance 7.00 8.00 7.00 7.00 8.00 8.00 8.00 9.00 9.00 9.00
Community Services 12.00 11.65 -
Building and Safety - -
Planning and Development - - -
Community Development 19.00 20.00 - - -
Public Works 20.00 21.35 - 27.00 27.00 27.00
Community Resources cel - 18.00 18.00 18.00 18.00 23.00 19.00 20.00 21.00
Design and Development 1b1 27.00 27.00 29.00 32.00 33.00 18.00 18.00 20.00
Facilities 101 - 19.00 19.00 19.00 19.00 19.00
Total 70.00 72.00 78.00 78.00 84.00 89.00 95.00 85.00 86.00 91.00
100.00
Total Full -Time City Employees
89 00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
7220
72.00
78.00 78.00
2014(1) 2015 2016(2) 2017
84.00
95.00
91.00
2018 2019 2020 2021(3) 2022
2023
Notes:
The City of La Quinta contracts with the County of Riverside for Police Services and with the California Department of Forestry through a contract with the County of Riverside for Fire Services. In
addition, the City -owned Golf Course is operated by Landmark Golf. These positions have not been included as these positions are not City employees.
01 The City merged the Building and Safety Department with the Planning and Development Department in 2014. The resultant department was referred to as Community Development until 2016, see
below.
(2) During FY 2015-16 the City was subject to a major reorganization in an attempt to improve efficiency and controls that effectively terminated the Community Services, Community Development, and
Public Works departments. Following is a brief description of the reorganization for each department:
a) The Community Resources department has taken over specific roles of the prior Community Development and Community Services departments including, but not limited to human resources,
police, fire, library, museum, recreation, marketing, code compliance, animal control, and emergency services.
b) The Design and Development department has taken over specific roles of the prior Community Development, Public Works, and Finance departments including, but not limited to customer service,
business and animal licensing, planning, building, engineering services, and development services.
c) The Facilities department has taken over specific roles of the prior Community Services and Public Works departments including, but not limited to , parks, streets, buildings, lighting and
landscaping.
131 During the FY 2020-21 the City created the Public Works Division, consisting of the Facilities Division as well as Public Works, Engineering, and Capital Improvement (which were moved out of Design
& Development). In addition, there were impacts due to the novel Coronavirus pandemic that led to a reduction in workforce.
Source: City of La Quinta
158
City of La Quinta
Operating Indicators by Function (Table 23)
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017 2018 2019 202011 2021131 2022 2023
Finance:
Number of Animal Licenses Processed 0( 1,602 1,374
Number of Accounts Payable Checks Processed 3,696 3,833 4,153 3,835 3,621 3,879 3,855 2,998 3,014 3,196
Number of investment purchases 22 21 22 20 61 56 49 32 93 98
Par value of investments $ 136,323,300 $ 128,990,447 $ 137,594,669 $ 139,613,063 $ 150,117,079 $ 163,665,838 $ 170,194,404 $ 187,171,960 $ 223,319,336 $ 248,005,525
Number of cleared checks 3,922 4,004 4,167 3,932 3,813 3,875 3,962 2,977 2,989 3,078
Number of bank wires, drafts, and EFT0( 58 54 41 44 64 68 57 412 504 568
City Clerk:
Contracts Processed 289 238 282 199 243 266 297 217 232 226
Documents Notarized 334 203 157 99 128 74 90 184 256 143
Documents Recorded with County 183 106 112 56 67 45 39 43 150 91
Subpoenas and Claims Processed 21 37 10 8 12 18 15 15 18 27
Records Requests Fulfilled and Recorded 601 580 518 743 572 602 633 847 1,205 1,201
Pages of Electronic Documents Archived') 34,671 164,847 233,182 214,384 593,991 970,894 753,291 190,113 176,426 131,141
Public Works:
Encroachment permits issued 109 127 54 123 121 140 121 138 196 163
Request for services l') 1322 1261 3,440 3,207 2,652 2,194 1,938 2,041 1,732 2,983
Community Development:
Number of Active Business Licenses "( 3,998 4,452 3,368 3,681 3,707 3,806 3,592 3,267 3,414 3,630
Permits:
Single family Detached 147 176 108 92 142 122 218 157 467 407
Single family Attached 4 7.00 7.00 6 14 1 0 27 4
Residential Pool 204 255 217 170 211 243 237 337 424 369
Wall/Fence 220 328 257 209 268 223 312 244 412 504
Other 1,158 1,316 1,230 1,258 1,571 1,655 1,401 1,619 2,192 2,474
Garage Sale Permits 01 1,255 1,290 1,109 1,024 928 959 604 351 461 343
Total Permits 2,984 3,369 2,928 2,760 3,126 3,216 2,773 2,708 3,983 4,101
Code Compliance 11:
Animal Control Incidents Handled (1' 1,645 1,085 0 52 42 30 10 19
Vehicle abatements 88 85 255 212 224 184 149 79 114 108
Weed abatements 43 45 57 114 128 80 65 53 74 44
Nuisance abatements/Property Maintenance 730 557 1,037 1,180 1,122 921 821 403 952 776
All Other l2( 1,432 806 888 1,159 1,591 1,511 1,320 1,071
Community Services:
Library activities:
Number of Visits 71,874 73,924 182,913 190,747 152,725 132,947 84,042 25,950 65,259 80,364
Books checked out 329,154 263,047 234,340 254,323 250,636 241,450 122,084 63,198 149,001 150,286
Cards Issued 2,035 2,418 2,179 2,248 2,276 2,251 919 886 1,610 1,827
Number of School Children Visiting 1,539 1,562 2,947 4,680 4,528 3,303 3,708 10,221 2,435 5,968
Volunteer Hours 1,340 1,917 2,169 2,248 2,314 2,138 1,173 0 524 853
Senior Center/Wellness Center 1):
Number of visits 11,500 23,871 62,820 74,141 87,294 82,477 41,934 4,725 20,065 30,007
Volunteer Hours 2,745 1,279 1,585 1,420 1,333 1,148 506 0 0 84
Recreation activities:
Participants:
Leisure Classes4, 1,177 1,322 2,241 2,278 2,168 2,039 864 269 15,538 35,786
Special events 5,927 6,460 8,185 7,783 10,449 12,650 4,950 390 4,685 9,929
Adult Sports 5,878 5,487 7,192 6,695 6,136 5,932 3,644 0 492 1,379
Golf course:
Golf rounds played 43,610 41,904 45,104 43,085 42,590 44,949 33,407 39,073 44,329 44,438
Average Green fee $ 66.83 $ 69.65 $ 66.87 $ 66.80 $ 71.88 $ 72.02 $ 71.23 $ 79.63 $ 92.53 $ 92.39
Planning and Development:
Number of residential units approved 494 208 40 120 0 114 92 212 132 429
Commercial square footage approved 113,149 79,092 13,000.00 391,914 7,599 102,552 3,162 152,133 15,537 32,071
Notes:0) Data on this table may vary from year to year due to restructuring, personnel, and systems changes that have taken place at the city over the past five years. Examples include animal licensing
and control contracted to County of Riverside May 2015, business licenses and garage sale permits transferred to Community Development Department, tracking system for active business licenses
updated, vacation rental requirements for permits changed, Codes Department began using GoEnforce tracking software, Public Works Department expanded use of GoRequest system, City Clerk's ofice
completed project to archive all old documents and plans, and has now transitioned archiving documents electronically, and the Senior Center became the Wellness Center in 2015.
8f "All Other" category includes building codes, business license, commercial, hazardous conditions, health/safety, other, parking, vacation rentals, and zoning. For2016, data was annualized using the
seven months of actual "total closed incidents" provided by GoEnforce.
(31 Declines in the reported numbers for the Library, Wellness Center, and any related recreational activities are due to facility closures and restrictions as a result of the novel Coronavirus pandemic. For
2021, 'School Children Visiting' the library includes virtual storytime attendance.
(°(Previously reported only wires, has been updated to include all forms of electronic payment types.
(s(Leisure Classes line includes X -park and Fritz Burns Pool activity participants starting in 2021-22.
Source' Coy of La Quints
159
City of La Quinta
Capital Asset Statistics by Function (Table 24)
Last Ten Fiscal Years
Fiscal Year
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Works:
Streets (miles) 128 128 128 128 128 128 129 129 129 129
Bikepaths (miles) (1) 22 34 34 36 36 36 79 81.1 81.1 82.6
Streetlights (2) 277 277 281 372 372 372 372 372 372 382
Traffic signals 54 54 54 54 54 54 50 50 50 50
Traffic signs 3,018 3,018 3,018 5,758 5,758 5,408 4,808 4,808 4,808 4,858
Bridges 13 13 13 13 13 13 13 13 13 13
Parks and Recreation:
Parksi3) 13 13 13 13 13 13 14 14 17 17
Park Acreage 218 218 218 218 218 218 - -
Undeveloped Park Acreac 40 40 40 40 40 40 - -
City -Owned Acres(3) 238 238 235 235
City -Improved Acres(3) 114 114 111 111
Hiking Trails (miles) 17 17 17 17.4 17.4
Senior/Wellness Center 1 1 1 1 1 1 1 1 1 1
Museum 1 1 1 1 1 1 1 1 1 1
Library 1 1 1 1 1 1 1 1 1 1
Public Safety:
Fire Stations 3 3 3 3 3
Golf Course:
Municipal golf courses 1 1 1 1 1
3
1
3 3 3 3
Notes:
(1) Bike path miles were updated to include both Class I (off-street) and Class II (on -street, painted bike lanes) bicycle paths in 2015; the City has been adding
Class II through various projects and the 2020 number has been updated accordingly.
(2) In fiscal year ending 2009 street lights at intersections were included for the first time. Additionally, the decorative streetlights in Old Town were added for the
first time in 2017.
13)In fiscal year 2019-20, the City added one public park, the SilverRock Event Site. In 2020, the City aligned reporting with the Developmental Impact Fee Study
from August 2019 which identifies parks as 'City -Owned' and 'City -Improved' by acreage in Table 3.1. In 2021-22, the City added one public park, the X -park.
Additionally, the park count now includes two sports fields owned by Desert Sands Unified School District but maintained by the City. These parks were already
included in the "city -improved acres" line.
160
City of La Quinta
Schedule of Insurance in Force (Table 25)
June 30, 2023
Company Name Policy Number Coverage Limits Term Premium
National Union Fire Insurance 01-309-02-02
Alliant Insurance Services, Inc
Crime, Forgery, Fraud $1 Million
07/01/22 to 07/01/23 $1,800
California Self -Insured All Risk Property Insurance $25 Million 07/01/22 - 07/01/23 $224,780
Joint Powers Pool Including Auto Physical Damage, Single Limit per Occurrence
Insurance Authority Terrorism, Boiler & Machinery subject to other sublimits
Earthquake
Real & Personal Property
Including Contingent Tax Interruption
California Self -Insured Comprehensive General $50 Million 07/01/22 - 07/01/23 $399,391
Joint Powers Pool and Automobile Liability Single Limit per Occurrence
Insurance Authority
California Self -Insured
Joint Powers Pool
Insurance Authority
Source: City of La Quinta
Workers' Compensation
$10 Million 07/01/22 - 07/01/23 $216,066
Per Occurrence
161
Other Information
June 30, 2023
City of La Quinta, California
City of La Quinta, California
Project Status
Year Ended June 30, 2023
Project Status: Highway 111 Bridge Funding
In November 2020, Caltrans advised the City that the Highway Bridge Planning (HBP) Funding Program had been
oversubscribed for fiscal years 2020/21 and 2021/22 and there is no additional programming capacity for
projects already in construction or ready to advertise.
At the direction of the City Council, in June 2021, the City agreed to provide "at risk" advance funding using the
Advance Construction Procedure outlined in Section 3.7 of the Caltrans Local Procedures Manual, and Caltrans
approved the City's request.
The environmental, engineering/design and right-of-way phases are complete and are fully funded. The
construction phase which includes construction, construction engineering, and contingency is estimated at
$20,869,098. The HBP Funding will ultimately contribute 88.53% or up to $14,936,122 toward eligible
(Construction Phase) costs. This is the amount the City is required to advance. Staff and the Financial Advisory
Commission (FAC) recommend using a combination of unassigned reserves and Measure G reserves for this
advance funding due to their current balances. The City anticipates these funds to be reimbursed within two to
five fiscal years.
In fiscal year 2022/2023, the advanced funding was approved for federal reimbursement, and the City will no
longer need to subsidize the funds as originally anticipated, Funds allocated from Measure G Reserves and
Unassigned Reserves have been removed from the project allocation.
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