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2024-2025 ACFR (July 1 - June 30 Annual COmprehensive Financial Report)CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2025 CITY OF LA QUINTA, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2025 Table of Contents INTRODUCTORY SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii Organizational Chart of City Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viii FINANCIAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Government-Wide Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . 29 Proprietary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Statement of Net Position - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds . . . .32 Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Fiduciary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Statement of Fiduciary Net Position - Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Statement of Changes in Fiduciary Net Position - Fiduciary Funds . . . . . . . . . . . . . . . . . . . . .37 Notes to The Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Page Table of Contents Page Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76 Budgetary Comparison Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Housing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 Schedule of Proportionate Share of the Net Pension Liability - Miscellaneous Plan . . . . . . . . . . . . .81 Schedule of Plan Contributions - Miscellaneous Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 Schedule of OPEB Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios . . . . . . . . . . . . . . . . . . .85 Notes to Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Combining and Individual Fund Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 Combining Balance Sheet - Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Budgetary Comparison Schedules - Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 Disaster Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106 State Gas Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 Library and Museum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108 Federal Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109 State Law Enforcement Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110 Lighting and Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111 Quimby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 La Quinta Public Safety Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113 Art in Public Places . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114 South Coast Air Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 AB 939 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116 Law Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117 Measure A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .118 Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 AB 1379 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120 Budgetary Comparison Schedules – Capital Project Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121 Capital Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122 Maintenance Facilities DIF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 Civic Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126 Parks and Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Library Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128 Community Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129 Street Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130 Park Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131 Fire Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132 Table of Contents Page Budgetary Comparison Schedules – Debt Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133 Financing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134 Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135 Combining Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .136 Statement of Revenues, Expenses and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . .137 Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138 STATISTICAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140 Financial Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142 Net Position by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143 Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145 Changes in Net Position - Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147 Changes in Net Position - Business-type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151 Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155 Revenue Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157 Tax Revenue by Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158 Top 25 Bradley-Burns Sales Tax Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Top 25 Measure G Sales Tax Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 Taxable Sales by Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161 Assessed Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163 Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166 Debt Capacity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168 Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 Ratios of General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171 Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172 Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 Pledged-Revenue Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175 Demographic and Economic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176 Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177 Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178 Full-time City Employees by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Operating Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180 Operating Indicators by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 Schedule of Insurance in Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183 INTRODUCTORY SECTION i December 19, 2025 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, 2025. 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. Lance, Soll & Lunghard LLP (LSL), has issued an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2025. This is the most favorable conclusion. The independent auditor’s report is located at the front of the 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. ii 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 39,000, 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. 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. iii Local Economy According to the State of California Employment Development Department, as of September 2025, the unadjusted unemployment rate for La Quinta was 7.6%, which was higher than unadjusted rates for Riverside County’s at 6.1% and the statewide average of 5.6%. This reflects broader statewide labor market softening, as California experienced modest job losses and slower employment growth during the year. While gains occurred in sectors such as Health Services and Leisure and Hospitality, these were partially offset by declines in Professional and Business Services. Regional economic conditions and the City’s exposure to tourism-related and seasonal employment contributed to unemployment levels remaining elevated relative to county and state averages. 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 hosts Ironman 70.3 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 among the top ten in the United States by ArtFair Sourcebook’s Top 100 Fine Art Events. Substantially or entirely completed projects during 2024/25 included PGA Superstore, Dunkin, World Taekwondo, Yun Therapy Acupuncture and Herb Center, Advanced Endoscopy Centers, Advanced Gastroenterology Associates along the Highway 111 corridor as well as Disco Rabbit and Brow Arc in the La Quinta Cove area. Long-term Financial Planning 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 iv 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 2024/25, the General Fund’s overall fund balance increased by about $33.1 million when compared to the ending balance in 2023/24, mainly due to revenue increases surpassing budget projections and prudent spending controls. As of June 30, 2025, 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 2025, the City Council adopted a balanced budget for fiscal year 2025/26, which strategically allocated Measure G reserves to support capital improvement projects. As a result of this allocation, the adopted budget projected operating revenues exceeding expenses by $20,066. The 2025/26 budget also maintains sustained funding for essential services, including police, fire protection, and the 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. The Future The City has a mixture of housing and commercial developments under construction. Larger residential developments underway include Jefferson Street Apartments, Village Hospitality Homes, Diamante and Oasis by Crestwood Communities, and Bravo Estates. Commercial developments include the Hampton Inn hotel, St. Francis Parish Hall expansion, the Calle Estado mixed-use project, Rancho La Quinta golf clubhouse remodel/addition and fitness center, La Quinta Dental campus, Highway 111/Adams drive- through, and the expansion of Tower Market. Approved housing developments on the horizon include Flora at Jefferson Square, La Quinta Village Apartments, Sierra Blanca, Club at Coral Mountain, and Travertine. 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 and is anticipated to reshape the corridor by adding mixed-use and infill development and incorporating ever-evolving shopping trends. The City acquired vacant property on the north side of Highway 111, which is anticipated to be developed as a mixed-use project with v 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 City is participating in the Government Finance Officers Association of the United States and Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting program. The City’s submission for the fiscal year ended June 30, 2024, is currently being processed by GFOA. 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. The City expects to meet all program 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 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/City Treasurer vi vii Organizational Chart of City Departments viii FINANCIAL SECTION 1 INDEPENDENT AUDITORS’ REPORT To the Honorable Members of the City Council City of La Quinta, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California, (hereafter, the City) as of and for the year ended June 30, 2025, 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 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, 2025, 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 and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ 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. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the 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. Auditors’ 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 auditors’ 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 generally accepted auditing standards 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. 2 In performing an audit in accordance with generally accepted auditing standards 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. •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, budgetary comparison information, and required pension and other post-employment benefits schedules 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 accompanying combining and individual fund financial statements and schedules (supplementary information) 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. To the Honorable Members of the City Council City of La Quinta, California 3 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ 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 basic 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 December 19, 2025, 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 City’s internal control over financial reporting and compliance. Irvine, California December 19, 2025 To the Honorable Members of the City Council City of La Quinta, California 4 5 Management’s Discussion and Analysis HIGHLIGHTS At the close of 2024-25 (June 30, 2025): •The total assets and deferred outflows of the City exceeded its total liabilities and deferred inflows at the close of the fiscal year 2024-25 by $950,550,296 (net position). Of this amount, $249,678,961 (unrestricted net position) may be used to meet ongoing obligations and $594,231,375 or 63% was invested in capital assets and is not available to meet ongoing obligations. •Governmental activities total net position increased by $47,146,195 and the Business-Type total net position decreased by $1,320,084 which is attributable to the SilverRock Golf Course. •Governmental funds (General Fund, Housing Authority, Capital Improvement Fund), seventeen (17) 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 $302,652,399, an increase of $32,750,505. 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 $84,454,583, or 35%, of the total $242,951,299 balance and represented 29% of total final General Fund budgeted expenses including transfers and multi-year capital projects. •Total governmental activities long-term liabilities increased by $1,182,535 from $1,559,701 to $2,742,236. 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. 6 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 a significant portion of their costs through user charges (busi ness-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 inf ormation 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. 7 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 three (3) major governmental funds: the General Fund, the Housing Authority special revenue fund, and the Capital Improvement capital project fund. Data from the other twenty-eight (28) 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 . 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 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. 8 The City reports on two fiduciary funds: 1) the Pension (and Other Employee Benefit) 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 and Statement of Changes in Net Position. 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 $905,004,075 to $950,550,296 at the close of the 2024-25, which is $45,826,111 (including prior period adjustment of $279,890) 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 ($592,061,273 or 65% for 2023-24 and 594,231,375 or 63% for 2024-25) 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. 9 City of La Quinta Net Position Governmental Activities Business-Type Activities Total by Fiscal Year 2024 2025 % Change 2024 2025 % Change 2024 2025 % Change Current and other assets $ 346,290,680 $ 376,648,571 9 %$ 1,841,674 $ 1,168,858 (37) %$ 348,132,354 $ 377,817,429 9 % Capital assets 549,571,823 555,041,213 1 % 42,987,413 42,542,547 (1) %592,559,236 597,583,760 1 % Total Assets 895,862,503 931,689,784 4 %44,829,087 43,711,405 (2) %940,691,590 975,401,189 4 % Deferred outflows 11,707,753 10,613,150 (9) %- - - %11,707,753 10,613,150 (9) % Current and other liabilities 33,085,649 23,472,054 (29) %476,079 751,043 58 %33,561,728 24,223,097 (28) % Non-current liabilities 4,259,110 3,350,610 (21) %123,859 51,297 (59) %4,382,969 3,401,907 (22) % Total Liabilities 37,344,759 26,822,664 (28) %599,938 802,340 34 %37,944,697 27,625,004 (27) % Deferred inflows 9,450,571 7,839,039 (17) %- - - %9,450,571 7,839,039 (17) % Net position: Net investment in capital assets 549,197,719 551,740,125 - %42,863,554 42,491,250 (1) %592,061,273 594,231,375 - % Restricted 70,215,219 106,639,960 52 %- - - %70,215,219 106,639,960 52 % Unrestricted 241,361,988 249,261,146 3 %1,365,595 417,815 (69) %242,727,583 249,678,961 3 % Total Net Position $ 860,774,926 $ 907,641,231 5 %$ 44,229,149 $ 42,909,065 (3) %$ 905,004,075 $ 950,550,296 5 % An additional portion of the City's net position ($70,215,219 or 8% in 2024 and $106,639,960 or 11% in 2025) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $249,678,961 (26%) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of 2024-25, the City had positive balances in all three categories of net position for the governmental and business-type activities. 10 Governmental Activities Governmental activities net position increased by $47,146,195, 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 Activities Business-type Activities Total 2024 2025 $ Change 2024 2025 $ Change 2024 2025 $ Change PROGRAM REVENUES: Charges for Services $ 4,921,690 $ 5,241,862 $ 320,172 $ 4,965,124 $ 4,228,963 $ (736,161) $ 9,886,814 $ 9,470,825 $ (415,989) Operating Grants and Contributions 7,265,464 12,582,753 5,317,289 - - - 7,265,464 12,582,753 5,317,289 Capital Grants and Contributions 14,078,555 10,389,593 (3,688,962) - - - 14,078,555 10,389,593 (3,688,962) GENERAL REVENUES - & TRANSFERS: Property Taxes 24,646,620 26,750,585 2,103,965 - - - 24,646,620 26,750,585 2,103,965 Other Taxes 49,202,291 49,182,731 (19,560) - - - 49,202,291 49,182,731 (19,560) Use of money & property 12,708,191 15,975,454 3,267,263 32,253 36,298 4,045 12,740,444 16,011,752 3,271,308 Motor Vehicle In Lieu 5,584,194 6,046,467 462,273 - - - 5,584,194 6,046,467 462,273 Miscellaneous 1,640,182 1,489,582 (150,600) - - - 1,640,182 1,489,582 (150,600) Total Revenues 120,047,187 127,659,027 7,611,840 4,997,377 4,265,261 (732,116) 125,044,564 131,924,288 6,879,724 EXPENSES: General Government 10,727,413 10,728,288 875 - - - 10,727,413 10,728,288 875 Public Safety 29,156,519 24,672,278 (4,484,241) - - - 29,156,519 24,672,278 (4,484,241) Planning and Development 8,432,348 8,123,885 (308,463) - - - 8,432,348 8,123,885 (308,463) Community Services 13,647,971 14,853,039 1,205,068 - - - 13,647,971 14,853,039 1,205,068 Public Works 10,982,293 20,770,395 9,788,102 - - - 10,982,293 20,770,395 9,788,102 Interest on Long-Term Debt 48,204 64,947 16,743 - - - 48,204 64,947 16,743 Golf Course - - - 5,643,061 6,885,345 1,242,284 5,643,061 6,885,345 1,242,284 TOTAL EXPENSES 72,994,748 79,212,832 6,218,084 5,643,061 6,885,345 1,242,284 78,637,809 86,098,177 7,460,368 Excess (Deficiency) Before Transfers 47,052,439 48,446,195 1,393,756 (645,684) (2,620,084) (1,974,400) 46,406,755 45,826,111 (580,644) TRANSFERS & EXTRAORDINARY ITEMS: Transfers (1,466,000) (1,300,000) 166,000 1,466,000 1,300,000 (166,000) - - - Changes in Net Position 45,586,439 47,146,195 1,559,756 820,316 (1,320,084) (2,140,400) 46,406,755 45,826,111 (580,644) Net Position - Beginning 815,188,487 860,774,926 45,586,439 43,408,833 44,229,149 820,316 858,597,320 905,004,075 46,406,755 Prior Period Adjustment - (279,890) (279,890) - - - - (279,890) (279,890) Net Position - Beginning, As Restated 815,188,487 860,495,036 45,306,549 43,408,833 44,229,149 820,316 858,597,320 904,724,185 46,126,865 NET POSITION - ENDING $ 860,774,926 $ 907,641,231 $ 46,866,305 $ 44,229,149 $ 42,909,065 (1,320,084) $ 905,004,075 $ 950,550,296 $ 45,546,221 • Governmental revenues overall increased by $7,611,840 with the largest increases being $5,317,289 in operating grants and contributions, followed by $3,267,263 in use of money and property, and $2,103,965 in property taxes. • Expenses for Governmental Activities increased by $6,218,084 (a 9% increase when compared to 2023-24), with the largest increases being $9,788,102 in Public Works and $1,205,068 in Community Services offset by a decrease of $4,484,241 in Public Safety. As noted earlier, Governmental Activities includes 31 individual governmental funds and includes 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 $1,300,000 to the business-type activities of the golf course. Funds were utilized to support operations per the adjusted budget. 11 Business-Type Activities This was the twentieth 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 $4,228,963, $736,161 lower than the previous year, with golf course expenses of 6,885,345, which were $1,242,284 or approximately 22% more than the previous year. In 2024-25, the General Fund transferred $1,300,000 to the SilverRock Golf Fund to support operations. After this transfer, the net position decreased by $1,320,084. 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 2024-25, 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 $ 25,681,444 11 %$ 3,750 0.006 %$ 25,685,194 8 % Restricted 6,172,305 3 % 68,431,718 114.6 % 74,604,023 25 % Committed 45,000,000 19 % - - % 45,000,000 15 % Assigned 81,642,967 34 % - - % 81,642,967 27 % Unassigned 84,454,583 35 % (8,734,368) (14.6) % 75,720,215 25 % Total $ 242,951,299 100 %$ 59,701,100 100 %$ 302,652,399 100 % Governmental fund balances ended the year totaling $302,652,399, an increase of $32,750,505 in comparison with the prior years’ ending balance of $269,901,894. 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 $25,685,194 or 8%; this represents amounts that are not available to pay for operating expenditures because they are in the form of land and receivables. 12 Restricted Restricted fund balance totaled $74,604,023 or 25%; these amounts represent funds with external limitations on spending. Significant restrictions include: Section 115 trust of $6,172,305 restricted for pension liabilities; Library and Museum totaling $15,775,000 which represents property tax increment money that can only be used for library and museum services; Measure A funding of $5,159,000 which can only be used for transportation; Transportation capital project fund of $6,163,000 in developer fees that are restricted for the acquisition, construction and improvement of the City’s infrastructure; and Economic Development funding of $3,684,000 that can only be used for future economic development in the City. Committed $45,000,000 (15%) are committed fund balances which are the result of self-imposed limitations established by the City Council. In May 2018, the City adopted a Reserve Policy that established committed General Fund reserve categories, including Natural Disaster Reserves, Economic Disaster Reserves, Cash Flow Reserves, and Capital Replacement Reserves. The Policy was updated in 2023 to include increased funding targets. As of June 30, 2025, all reserve categories are fully funded at their target levels. Assigned Assigned funds are constrained by the City’s intent to use them for specific purposes and represent a total of $81,642,967 (27%) of the total fund balance. $31,778,242 represents funds for approved multi-year capital projects and $850,000 for general fund carryovers 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 $29,623,592 and $19,391,133 represents funds held in trust with the County of Riverside for fire services. Unassigned The remaining fund balance of $75,720,215 represents unassigned fund balances or the residual net resources after taking into consideration the other classifications. The Capital Improvement Fund accounted for $6,859,124 of the negative $8,734,368 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 2024-25, the unassigned fund balance was $84,454,583 while total fund balance was $242,951,299. The General Fund balance increased by $33,165,592 in 2024-25. Key factors were: 13 •A year-over-year decrease of $2,882,000 in non-spendable is attributed the 2024-25 Redevelopment Agency loan repayment of $2,805,000 offset by interest earnings of $57,000 resulted in a net decrease of $2,748,000 in Due from Other Governments. The outstanding loan balance of $17,969,747 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 FY 2018-19 with a deposit of $6,540,000, followed by an additional $3,460,000 in FY 2019-20. In FY 2022-23, a one-time discretionary payment of $5,000,000 was made to CalPERS to reduce the City’s unfunded pension liabilities, utilizing funds from the trust. The increases in FY 2023-24 and FY 2024-25 were primarily driven by interest earnings within the trust. •Committed reserves decreased by $900,000, primarily due to the reclassification of operational carryover balances from the committed category to the assigned category. The committed classification now reflects only formally established reserve amounts. •An increase of $11,338,000 in assigned reserves was due to $3,739,000 in the fire services trust and $10,962,000 in multi-year capital projects and operations carryovers. 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, 2025, is $19,391,133. These increases combined with a decrease in Measure G sales tax reserve ($3,362,000) 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 $227,346 to end the year at $24,528,484. Capital Improvement Fund The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty-six (46) active Capital Improvement Projects budgeted during 2024-25. The five most active projects were: •Dune Palms Bridge Improvements ($9,972,000) •Fred Waring Drive Pavement Rehabilitation ($1,529,000) •Fritz Burns Park Improvements ($1,066,000) •Dune Palms Road Pavement Rehabilitation ($914,000) 14 •Village Art Plaza Promenade & Cultural Campus ($656,000) 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. 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 $11,633,504 between the original ($82,914,300) and final amended budget ($94,547,804). The category representing the largest variances is taxes, which represents 82% of all General Fund revenues. Actuals for taxes include the three largest funding sources for the City – sales taxes $27,874,000, transient occupancy taxes (TOT) $15,950,000, and property taxes $13,694,000. Combined, these top three revenues account for $57,518,000 or 72% of all taxes, resulting in a $1,511,000 increase from the prior fiscal year with increases in all categories. Expenditure appropriations and transfers out increased by $25,086,923 between the original ($83,361,665) and final amended budget ($108,448,588) which included the following significant change: •$21,667,000 in operational and capital improvement project carryover appropriations from prior fiscal years to 2024-25 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, 2025, were $597,583,760 (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 lease and subscription assets. The investment in capital assets increased by $5,024,524 in 2024-25 primarily due to an increase in construction in progress. 15 The following chart lists the asset categories for governmental and business-like activities net of depreciation: City of La Quinta Capital Assets (net of depreciation) Governmental Activities Business-type Activities Total Description 2024 2025 2024 2025 2024 2025 Land $ 87,280,570 $ 87,280,570 $ 39,712,955 $ 39,712,955 $ 126,993,525 $ 126,993,525 Buildings & Improvements 35,162,219 33,524,206 2,269,551 2,055,005 37,431,770 35,579,211 Equipment & Furniture 1,499,415 1,808,675 16,467 48,529 1,515,882 1,857,204 Vehicles 1,022,210 895,271 867,343 675,756 1,889,553 1,571,027 Infrastructure 397,919,236 393,634,104 - - 397,919,236 393,634,104 Right To Use Leased Assets 91,006 43,447 121,097 50,302 212,103 93,749 Right To Use Subscription It Assets 311,230 1,147,307 - - 311,230 1,147,307 Construction In Progress 26,285,937 36,707,633 - - 26,285,937 36,707,633 TOTAL $ 549,571,823 $ 555,041,213 $ 42,987,413 $ 42,542,547 $ 592,559,236 $ 597,583,760 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, 2025, was $42,542,547, net of accumulated depreciation. The balance decrease of $444,866 primarily reflects the net disposal of capital equipment, partially offset by routine additions during the year. 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 2024-25, the City governmental activities had total outstanding long-term liabilities of $2,742,236, which is $1,182,535 more than the previous year. Of the total change, $(47,668) represents leases, $774,512 represents subscription IT liabilities, and $455,691 in employee compensated absences, presented as a net change in accordance with GASB Statement No. 101. GASB Statement No. 101 updated the accounting and reporting requirements for compensated absences, resulting in the recognition of these obligations as a net change based on employees’ earned benefits rather than the prior incremental accrual methodology. City of La Quinta Outstanding Debt Governmental Activities Debt Type:2024 2025 Leases $ 91,795 $ 44,127 Compensated Absences 1,185,597 1,641,288 Subscription IT liabilities 282,309 1,056,821 Total $ 1,559,701 $ 2,742,236 16 Additional information on long-term debt can be found in Note 5 of the financial statements. 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, 78495 Calle Tampico, La Quinta, CA, 92253, by telephone at 760-777-7055, or by email at finance@laquintaca.gov. 17 BASIC FINANCIAL STATEMENTS 18 GOVERNMENT-WIDE FINANCIAL STATEMENTS 19 Statement of Net Position ASSETS Cash and investments $ 295,856,194 $ 736,121 $ 296,592,315 Receivables: Accounts 589,763 - 589,763 Taxes 7,194,480 - 7,194,480 Accrued interest 6,280,801 456 6,281,257 Due from other governments 23,997,127 - 23,997,127 Notes and loans 28,106,583 - 28,106,583 Leases 2,170,323 - 2,170,323 Deposits 47,965 300,000 347,965 Restricted assets: Cash and investments 6,172,305 - 6,172,305 Inventories - 132,281 132,281 Land held for resale 5,403,652 - 5,403,652 Prepaid costs 165,467 - 165,467 Net OPEB Asset 663,911 - 663,911 Capital assets (not being depreciated/amortized) 410,062,551 39,712,955 449,775,506 Capital assets (net of accumulated depreciation/amortization) 144,978,662 2,829,592 147,808,254 Total assets 931,689,784 43,711,405 975,401,189 DEFERRED OUTFLOWS OF RESOURCES Pension-related 10,372,123 - 10,372,123 OPEB-related 241,027 - 241,027 Total deferred outflows of resources 10,613,150 - 10,613,150 LIABILITIES Accounts payable 8,040,768 715,510 8,756,278 Due to other governments 1,118,694 - 1,118,694 Accrued liabilities 821,281 - 821,281 Accrued interest 5,211 33 5,244 Deposits payable 7,060,623 35,500 7,096,123 Unearned revenue 6,425,477 - 6,425,477 Noncurrent liabilities: Due within one year: Compensated absences 746,511 - 746,511 Leases and subscriptions payable 338,056 32,028 370,084 Due in more than one year: Compensated absences 894,777 - 894,777 Leases and subscriptions payable 762,892 19,269 782,161 Net pension liability 608,374 - 608,374 Total liabilities 26,822,664 802,340 27,625,004 DEFERRED INFLOWS OF RESOURCES Pension-related 5,092,385 - 5,092,385 OPEB-related 725,228 - 725,228 Lease-related 2,021,426 - 2,021,426 Total deferred inflows of resources 7,839,039 - 7,839,039 NET POSITION Net investment in capital assets 551,740,125 42,491,250 594,231,375 Restricted: General government 841,751 - 841,751 Public safety 989,756 - 989,756 Planning and development 55,401,363 - 55,401,363 Parks and recreation 16,774,731 - 16,774,731 Public works 8,891,020 - 8,891,020 Capital projects 16,905,123 - 16,905,123 Other post-employment benefits 6,836,216 - 6,836,216 Unrestricted 249,261,146 417,815 249,678,961 Total net position $ 907,641,231 $ 42,909,065 $ 950,550,296 Primary Government Governmental Activities Business-Type Activities Total CITY OF LA QUINTA, CALIFORNIA Statement of Net Position June 30, 2025 See accompanying Notes to the Basic Financial Statements 20 Statement of Activities Functions/Programs: Primary government: Governmental activities: General government $ 10,728,288 $ 4,498,560 $ 5,586,441 $ - Public safety 24,672,278 661,788 206,007 - Planning and development 8,123,885 - 256,869 - Community services 14,853,039 - 4,062,490 - Public works 20,770,395 81,514 2,470,946 10,389,593 Interest Expense and Fiscal Charges 64,947 - - - Total governmental activities 79,212,832 5,241,862 12,582,753 10,389,593 Business-type activities: Golf Course 6,885,345 4,228,963 - - Total business-type activities 6,885,345 4,228,963 - - Total primary government $ 86,098,177 $ 9,470,825 $ 12,582,753 $ 10,389,593 Component Units: General revenues and transfers: General revenues: Property taxes Sales taxes Transient occupancy taxes Franchise taxes Business license taxes Other taxes Motor vehicle in lieu Use of money and property Other Transfers Total general revenues and transfers Change in net position Net position-beginning, before restatements Restatement - change in accounting principle Net position-beginning, as restated Net position-ending Program Revenues Expenses Charges for Services Operating Contributions and Grants Capital Contributions and Grants CITY OF LA QUINTA, CALIFORNIA Statement of Activities For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 21 $ (643,287) $ - $ (643,287) (23,804,483) - (23,804,483) (7,867,016) - (7,867,016) (10,790,549) - (10,790,549) (7,828,342) - (7,828,342) (64,947) - (64,947) (50,998,624) - (50,998,624) - (2,656,382) (2,656,382) - (2,656,382) (2,656,382) (50,998,624) (2,656,382) (53,655,006) 26,750,585 - 26,750,585 29,784,142 - 29,784,142 15,612,280 - 15,612,280 2,330,640 - 2,330,640 442,644 - 442,644 1,013,025 - 1,013,025 6,046,467 - 6,046,467 15,975,454 36,298 16,011,752 1,489,582 - 1,489,582 (1,300,000) 1,300,000 - 98,144,819 1,336,298 99,481,117 47,146,195 (1,320,084) 45,826,111 860,774,926 44,229,149 905,004,075 (279,890) - (279,890) 860,495,036 44,229,149 904,724,185 $ 907,641,231 $ 42,909,065 $ 950,550,296 Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Activities Business-Type Activities Total CITY OF LA QUINTA, CALIFORNIA Statement of Activities (Continued) For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 22 FUND FINANCIAL STATEMENTS 23 Balance Sheet - Governmental Funds Special Revenue Funds Capital Projects Funds General Fund Housing Authority Capital Improvements ASSETS Cash and investments $ 211,376,333 $ 20,843,390 $ - Receivables: Accounts 281,774 224,035 - Taxes 6,567,344 - - Notes and loans 5,865,124 22,241,459 - Accrued interest 176,816 6,047,633 - Leases 2,170,323 - - Prepaid costs 36,870 - - Deposits - 47,965 - Due from other governments 14,533,190 3,593,950 4,201,946 Due from other funds 5,184,553 - - Property held for resale 5,403,652 - - Restricted assets: Cash and investments 6,172,305 - - Total assets $ 257,768,284 $ 52,998,432 $ 4,201,946 LIABILITIES Accounts payable $ 4,693,483 $ 68,330 $ 2,200,140 Accrued liabilities 725,767 28,385 - Unearned revenues - - 1,431,973 Deposits payable 7,034,273 26,350 - Due to other governments 67 - - Due to other funds - 2,132,708 2,271,106 Total liabilities 12,453,590 2,255,773 5,903,219 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 341,969 26,214,175 5,157,851 Leases 2,021,426 - - Total deferred inflows of resources 2,363,395 26,214,175 5,157,851 FUND BALANCES (DEFICITS) Nonspendable 25,681,444 - - Restricted 6,172,305 24,528,484 - Committed 45,000,000 - - Assigned 81,642,967 - - Unassigned 84,454,583 - (6,859,124) Total fund balances (deficits) 242,951,299 24,528,484 (6,859,124) Total liabilities, deferred inflows of resources and fund balances (deficits)$ 257,768,284 $ 52,998,432 $ 4,201,946 CITY OF LA QUINTA, CALIFORNIA Balance Sheet Governmental Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 24 Total Total Nonmajor Governmental Funds Funds ASSETS Cash and investments $ 47,427,610 $ 279,647,333 Receivables: Accounts 83,954 589,763 Taxes 627,136 7,194,480 Notes and loans - 28,106,583 Accrued interest 41,991 6,266,440 Leases - 2,170,323 Prepaid costs 3,750 40,620 Deposits - 47,965 Due from other governments 1,668,041 23,997,127 Due from other funds - 5,184,553 Property held for resale - 5,403,652 Restricted assets: Cash and investments - 6,172,305 Total assets $ 49,852,482 $ 364,821,144 LIABILITIES Accounts payable $ 641,009 $ 7,602,962 Accrued liabilities 64,660 818,812 Unearned revenues 4,993,504 6,425,477 Deposits payable - 7,060,623 Due to other governments 1,118,627 1,118,694 Due to other funds 780,739 5,184,553 Total liabilities 7,598,539 28,211,121 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 222,203 31,936,198 Leases - 2,021,426 Total deferred inflows of resources 222,203 33,957,624 FUND BALANCES (DEFICITS) Nonspendable 3,750 25,685,194 Restricted 43,903,234 74,604,023 Committed - 45,000,000 Assigned - 81,642,967 Unassigned (1,875,244) 75,720,215 Total fund balances (deficits) 42,031,740 302,652,399 Total liabilities, deferred inflows of resources and fund balances (deficits)$ 49,852,482 $ 364,821,144 CITY OF LA QUINTA, CALIFORNIA Balance Sheet Governmental Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 25 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Amounts reported for governmental activities in the Statement of Net Position are different because: Total fund balances - governmental funds $ 302,652,399 Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 539,657,184 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position. Deferred outflows-pension related 10,372,123 Deferred outflows-OPEB related 241,027 Deferred inflows-pension related (5,092,385) Deferred inflows-OPEB related (725,228) Total deferred outflows and inflows related to postemployment benefits 4,795,537 Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds. Long-term receivables 31,936,198 Net OPEB asset 663,911 Total other long-term assets 32,600,109 Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities. 30,218,520 Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. Leases (32,856) Compensated absences (1,641,288) Net pension liability (608,374) Total long-term liabilities (2,282,518) Net position of governmental activities $ 907,641,231 CITY OF LA QUINTA, CALIFORNIA Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2025 See accompanying Notes to the Basic Financial Statements 26 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Special Revenue Funds Capital Projects Fund Formerly Major Fund Housing Authority Disaster Recovery Capital ImprovementsGeneral Fund REVENUES Taxes $ 79,662,664 $ - $ - $ - Assessments - - - - Licenses and permits 2,682,352 - - - Intergovernmental 915,126 - - 7,205,731 Charges for services 1,413,876 - - - Use of money and property 10,255,043 2,323,822 - - Fines and forfeitures 389,449 - - - Developer fees - - - - Miscellaneous 1,335,970 60,486 - - Total revenues 96,654,480 2,384,308 - 7,205,731 EXPENDITURES Current: General government 12,462,112 - - - Public safety 26,902,914 - - - Community services 11,788,229 301,600 - - Planning and development 6,124,503 2,277,769 - - Public works 2,608,230 - - 955,905 Capital outlay 62,305 32,285 - 17,731,703 Debt service: Interest and fiscal charges - - - - Total expenditures 59,948,293 2,611,654 - 18,687,608 Excess (deficiency) of revenues over (under) expenditures 36,706,187 (227,346) - (11,481,877) OTHER FINANCING SOURCES (USES) Transfers in 4,993,504 - - 6,807,200 Transfers out (8,534,099) - - - Total other financing sources (uses) (3,540,595) - - 6,807,200 Net change in fund balances 33,165,592 (227,346) - (4,674,677) Fund balances (deficit)-beginning 209,785,707 24,755,830 441,350 (2,184,447) Change within financial reporting entity - - (441,350) - Fund balances (deficit)-beginning, as restated 209,785,707 24,755,830 - (2,184,447) Fund balances (deficit)-ending $ 242,951,299 $ 24,528,484 $ - $ (6,859,124) CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 27 Total Total Nonmajor Governmental Funds Funds REVENUES Taxes $ 1,991,208 $ 81,653,872 Assessments 991,288 991,288 Licenses and permits - 2,682,352 Intergovernmental 11,529,378 19,650,235 Charges for services - 1,413,876 Use of money and property 2,505,833 15,084,698 Fines and forfeitures - 389,449 Developer fees 455,990 455,990 Miscellaneous 37,513 1,433,969 Total revenues 17,511,210 123,755,729 EXPENDITURES Current: General government 750 12,462,862 Public safety 112,743 27,015,657 Community services 2,305,923 14,395,752 Planning and development 148,719 8,550,991 Public works 5,692,124 9,256,259 Capital outlay 173,987 18,000,280 Debt service: Interest and fiscal charges 23,423 23,423 Total expenditures 8,457,669 89,705,224 Excess (deficiency) of revenues over (under) expenditures 9,053,541 34,050,505 OTHER FINANCING SOURCES (USES) Transfers in 3,052,000 14,852,704 Transfers out (7,618,605) (16,152,704) Total other financing sources (uses) (4,566,605) (1,300,000) Net change in fund balances 4,486,936 32,750,505 Fund balances (deficit)-beginning 37,103,454 269,901,894 Change within financial reporting entity 441,350 - Fund balances (deficit)-beginning, as restated 37,544,804 269,901,894 Fund balances (deficit)-ending $ 42,031,740 $ 302,652,399 CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds (Continued) For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 28 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - total governmental funds:$ 32,750,505 Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period. Capital outlay 13,624,531 Depreciation/amortization expense (9,094,900) Total adjustment 4,529,631 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Earned but unavailable grant revenues 3,062,976 Total adjustment 3,062,976 Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. Principal payments 9,379 Total adjustment 9,379 Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities. 3,231,405 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences (175,801) Changes in pension liabilities and related deferred outflows and inflows of resources 3,714,521 Changes in OPEB liabilities and related deferred outflows and inflows of resources 23,579 Total adjustment 3,562,299 Change in net position of governmental activities $ 47,146,195 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 For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 29 PROPRIETARY FUND FINANCIAL STATEMENTS 30 Statement of Net Position - Proprietary Funds ASSETS Current assets: Cash and investments $ 736,121 $ 16,208,861 Receivables: Accrued interest 456 14,361 Prepaid costs - 124,847 Deposits 300,000 - Inventories 132,281 - Total current assets 1,168,858 16,348,069 Noncurrent: Capital assets, net of depreciation/amortization 42,542,547 15,384,029 Total noncurrent assets 42,542,547 15,384,029 Total assets 43,711,405 31,732,098 LIABILITIES Current liabilities: Accounts payable 715,510 437,806 Accrued liabilities - 2,469 Accrued interest 33 5,211 Deposits payable 35,500 - Leases 32,028 - Subscriptions - 317,070 Total current liabilities 783,071 762,556 Noncurrent liabilities: Leases 19,269 11,271 Subscriptions - 739,751 Total noncurrent liabilities 19,269 751,022 Total liabilities 802,340 1,513,578 NET POSITION Net investment in capital assets 42,491,250 14,315,937 Unrestricted 417,815 15,902,583 Total net position $ 42,909,065 $ 30,218,520 Business-Type Activities Governmental Activities Golf Course Internal Service Funds CITY OF LA QUINTA, CALIFORNIA Statement of Net Position Proprietary Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 31 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Business-Type Activities Governmental Activities Golf Course Internal Service Funds OPERATING REVENUES Sales and service charges $ 4,228,963 $ 8,287,458 Total operating revenues 4,228,963 8,287,458 OPERATING EXPENSES Administration and general - 294,731 Contract services 6,330,380 2,200,185 Software and supplies - 564,527 Fuel and oil - 108,076 Repairs and maintenance 41,800 901,380 Depreciation and amortization 510,343 1,785,952 Total operating expenses 6,882,523 5,854,851 Operating income (loss) (2,653,560) 2,432,607 NONOPERATING REVENUES (EXPENSES) Interest revenue 36,298 742,801 Interest expense (2,822) (41,524) Gain (loss) on disposal of capital assets - 97,521 Total nonoperating revenues (expenses) 33,476 798,798 Income (loss) before transfers (2,620,084) 3,231,405 Transfers in 1,300,000 - Change in net position (1,320,084) 3,231,405 Net position-beginning 44,229,149 26,987,115 Net position-ending $ 42,909,065 $ 30,218,520 CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 32 Statement of Cash Flows - Proprietary Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users $ 4,178,963 $ - Cash received from interfund services provided - 8,287,458 Cash payments to suppliers for goods and services (6,087,856) (4,925,278) Net cash provided by (used for) operating activities (1,908,893) 3,362,180 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 1,300,000 - Net cash provided by (used for) noncapital financing activities 1,300,000 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (65,477) (1,633,637) Principal paid on capital debt (72,562) (287,841) Interest paid on capital debt (2,924) (122,188) Proceeds from sales of assets - 108,227 Net cash provided by (used for) capital and related financing activities (140,963) (1,935,439) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 36,726 745,178 Net cash provided by (used for) investing activities 36,726 745,178 Net increase (decrease) in cash and cash equivalents (713,130) 2,171,919 Cash and cash equivalents-beginning 1,449,251 14,036,942 Cash and cash equivalents-ending $ 736,121 $ 16,208,861 Business-Type Activities Governmental Activities Golf Course Internal Service Funds CITY OF LA QUINTA, CALIFORNIA Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 33 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss)$ (2,653,560) $ 2,432,607 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense 510,343 1,785,952 (Increase) decrease in deposits (50,000) - (Increase) decrease in inventories 9,259 - (Increase) decrease in prepaid items - (4,048) Increase (decrease) in accounts payable 275,065 (852,743) Increase (decrease) in accrued liabilities - 412 Total adjustments 744,667 929,573 Net cash provided by (used for) operating activities $ (1,908,893) $ 3,362,180 SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL, AND INVESTING ACTIVITIES Capital assets acquired through subscription arrangement - $ 1,193,190 Business-Type Activities Governmental Activities Golf Course Internal Service Funds CITY OF LA QUINTA, CALIFORNIA Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 34 FIDUCIARY FUND FINANCIAL STATEMENTS 35 Statement of Fiduciary Net Position - Fiduciary Funds Pension (and Other Employee Benefits) Private Purpose Trust Fund ASSETS Cash and cash equivalents $ 69,869 $ 15,777,560 Receivables: Accrued interest 62 191 Prepaid costs - 236,575 Due from other governments - 1,118,627 Restricted assets: Cash with fiscal agent - 23,252 Total assets 69,931 17,156,205 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding - 12,391,524 Total deferred outflows of resources - 12,391,524 LIABILITIES Accrued interest - 977,137 Long-term debt: Due in one year - 17,060,934 Due in more than one year - 135,264,555 Total liabilities - 153,302,626 NET POSITION Restricted for pensions 64,931 - Restricted for the dissolution of the former RDA - (123,754,897) Total net position $ 64,931 $ (123,754,897) CITY OF LA QUINTA, CALIFORNIA Statement of Fiduciary Net Position Fiduciary Funds June 30, 2025 See accompanying Notes to the Basic Financial Statements 36 Statement of Changes in Fiduciary Net Position - Fiduciary Funds Pension (and Other Employee Benefits) Private Purpose Trust Fund ADDITIONS Investment earnings: Investment income $ 3,602 $ 61,872 Total investment earnings 3,602 61,872 Taxes - 20,261,137 Miscellaneous - - Total additions 3,602 20,323,009 DEDUCTIONS Administrative expenses 12,832 29,361 Interest and fiscal charges - 4,492,068 Total deductions 12,832 4,521,429 Net increase (decrease) in fiduciary net position (9,230) 15,801,580 Net position-beginning 74,161 (139,556,477) Net position-ending $ 64,931 $ (123,754,897) CITY OF LA QUINTA, CALIFORNIA Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2025 See accompanying Notes to the Basic Financial Statements 37 Notes to The Basic Financial Statements 38 A. The 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 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. 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 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 39 • 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 40 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 41 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. 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 42 Capital Projects Funds – These funds account for financial resources that are restricted, committed, or assigned to expenditures for capital outlay. 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 (and Other Employee Benefits) 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 43 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. 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 statements of net position. The following schedule summarizes capital asset useful lives: Buildings and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years Software 5-10 years Right to use leases assets Shorter of useful life or lease or subscription term CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 44 Lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. 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. 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. 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. 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 January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 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 refunding. See Note 17 for more information on the deferred outflows of resources related to debt refunding. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 45 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. 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 46 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. 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. 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 evaluated the impact of this statement and determined that it did not have a material effect on the City’s financial statements; as such no restatement of balances as of July 1, 2024 was deemed necessary. 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. The City has evaluated the impact of this statement and determined that no additional disclosures are necessary at this time. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 47 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. 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. GASB Statement No. 104 – In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The objective of this statement is to require certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class NOTE 2 - CASH AND INVESTMENTS Cash and investments held by the City were comprised of the following at June 30, 2025: Statement of Net Position Cash and investments $ 296,592,315 Restricted cash and investments 6,172,305 Statement of Fiduciary Net Position Cash and cash equivalents 15,847,429 Restricted cash and investments 23,252 Total cash and investments $ 318,635,301 Cash and investments as of June 30, 2025 consisted of the following: Cash on hand $ 3,300 Deposits with financial institutions 16,535,121 Investments 302,096,880 Total cash and investments $ 318,635,301 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 504 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 48 Authorized by Maximum Investment Types Investment Maximum Percentage Maximum Authorized by State Law Policy Maturity Allowed Investment U.S. Treasury Obligations Yes 5 years N/A N/A U.S. Agency Securities Yes 5 years N/A $30 million Local Agency Obligations Yes 5 years N/A N/A State-Issued Obligations Yes 5 years N/A N/A Commercial paper Yes 270 days 40%10% Certificates of deposit (negotiable)Yes 5 years 30% $250,000 Medium-term (Corporate) Notes Yes 5 years 30%$5 million JPA Investment Pools Yes N/A N/A N/A Money Market Mutual Funds Yes N/A 20%10% Mortgage pass-through securities Yes 5 years 20%N/A Supranationals Yes 5 years 30%N/A Local Agency Investment Fund Yes N/A N/A $75 million 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 investment. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) 49 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 Months) 1 year 1 to 3 3 to 5 Investment Type Total or Less years years Certificates of Deposit $ 36,920,593 $ 5,638,119 $ 20,000,372 $ 11,282,102 Federal agency securities Federal Farm Credit Bank 25,488,305 - 10,413,725 15,074,580 Federal National Mortgage Association 8,947,650 4,947,890 - 3,999,760 Federal Home Loan Mortgage Corp 5,301,797 3,869,387 1,432,410 - Federal Home Loan Bank 24,956,200 3,426,600 8,581,489 12,948,111 U.S. Treasurey Notes 63,638,290 9,096,570 25,915,375 28,626,345 Corporate Notes 2,505,100 487,470 996,470 1,021,160 Money Market Mutual Funds 1,943,691 1,943,691 - - Local Agency Investment Fund (LAIF) 42,065,822 42,065,822 - - CAMP 64,742,745 64,742,745 - - Riverside County Pool 19,391,133 19,391,133 - - Section 115 Trust Equity Mutual Funds 6,172,304 6,172,304 - - Held by Fiscal Agent Money Market Mutual Funds 23,250 23,250 - - Total $ 302,096,880 $ 161,804,981 $ 67,339,841 $ 72,952,058 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) 50 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 Federal Agency Securities $ 64,693,952 $ - $ 64,693,952 Corporate Notes 2,505,100 487,470 2,017,630 CAMP 64,742,745 64,742,745 - Money Market Mutual Funds 1,943,691 1,943,691 - Total 133,885,488 $ 67,173,906 $ 66,711,582 Exempt from Credit Risk Disclosure: U.S. Treasury Notes 63,638,290 Not Rated: Certificates of Deposit 36,920,593 Local Agency Investment Pool 42,065,822 Riverside County Pool 19,391,133 Section 115 Trust: Equity Mutual Funds 6,172,304 Held by Fiscal Agent: Money Market Mutual Funds 23,250 Total $ 302,096,880 Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows: Issuer Investment Type Reported Amount Percent of Portfolio Federal Farm Credit Bank Federal Agency Securities 25,488,305 8.44% Federal Home Loan Bank Federal Agency Securities 24,956,200 8.26% CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) 51 Disclosures Relating to Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The 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, BMO Bank N.A. 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. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) 52 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 net asset value on the basis of $1 and not fair value, accordingly, CAMP is measured on uncategorized inputs similar to LAIF. 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. The City has the following recurring fair value measurements as of June 30, 2025: Investment Type Total Level 1 Level 2 Investments U.S. Treasury $ 63,638,290 $ 63,638,290 $ - Federal Agency Securities 64,693,952 - 64,693,952 Corporate Notes 2,505,100 - 2,505,100 Certificates of Deposit 36,920,593 - 36,920,593 Total leveled investments 167,757,935 63,638,290 104,119,645 Investments with uncategorized inputs Money Market Mutual Funds 1,943,691 Local Agency Investment Fund 42,065,822 CAMP 64,742,745 Riverside County Pool 19,391,133 Section 115 Trust Equity Mutual Funds 6,172,304 Held by Fiscal Agent Money Market Mutual Funds 23,250 Total investments $ 302,096,880 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) 53 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, 2025, the outstanding principal balance is $2,035,388 and the outstanding interest is $3,620,776. 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, 2025, the outstanding principal balance is $20,206,071 and the outstanding interest balance is $2,387,329. In connection with the Talus La Quinta development project (formerly known as the SilverRock Resort), the City entered into agreements with the project developer to support the continued advancement and protection of the project site. In August 2024, the developer filed for Chapter 11 bankruptcy protection. Subsequent to the bankruptcy filing, the City Council approved court-authorized debtor-in-possession (DIP) financing in an amount not to exceed $11,000,000 to fund site remediation, project security, and costs associated with the bankruptcy proceedings and transition to new project ownership. The DIP financing is evidenced by formal agreements approved by the Bankruptcy Court and is secured by a super-priority lien on the debtor’s assets. As of June 30, 2025, the City advanced $5,865,124 under the DIP financing arrangements. The advances bear interest at a rate tied to the Local Agency Investment Fund (LAIF) and are expected to be repaid upon specified events, including the sale, transfer, or refinancing of project assets, or in accordance with the approved reorganization plan. The amounts advanced by the City related to the Talus La Quinta project are reported as notes receivable or advances and are evaluated for collectability in accordance with applicable accounting standards. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 3 - NOTES RECEIVABLE 54 Capital asset activity for governmental activities for the year ended June 30, 2025, is as follows: Governmental activities: Capital assets, not being depreciated/amortized Land $ 87,280,570 $ - $ - $ - $ 87,280,570 Right of way 286,074,348 - - - 286,074,348 Construction-in-progress 26,285,937 13,546,683 - (3,124,987) 36,707,633 Total capital assets, not being depreciated/amortized 399,640,855 13,546,683 - (3,124,987) 410,062,551 Capital assets, being depreciated Buildings and improvements 82,645,300 565,681 (109,569) 466,622 83,568,034 Equipment and furniture 4,110,624 828,726 (65,359) - 4,873,991 Vehicles 2,379,126 239,230 (57,247) - 2,561,109 Infrastructure 271,389,835 34,900 - 2,658,365 274,083,100 Right to use lease and subscription assets Building 65,776 - - - 65,776 Equipment 49,487 - - - 49,487 Vehicles 21,893 - (21,893) - - Software as a service 1,018,278 1,236,138 (289,178) - 1,965,238 Total right to use lease and subscription assets 1,155,434 1,236,138 (311,071) - 2,080,501 Total capital assets, being depreciated 361,680,319 2,904,675 (543,246) 3,124,987 367,166,735 Less accumulated depreciation Buildings and improvements 47,483,081 2,569,200 (8,453) - 50,043,828 Equipment and furniture 2,611,209 519,466 (65,359) - 3,065,316 Vehicles 1,356,916 366,169 (57,247) - 1,665,838 Infrastructure 159,544,947 6,978,397 - - 166,523,344 Total accumulated depreciation 210,996,153 10,433,232 (131,059) - 221,298,326 Less right to use lease and subscription assets accumulated amortization Building 21,925 32,889 - - 54,814 Equipment 7,104 9,898 - - 17,002 Vehicles 17,121 4,772 (21,893) - - Software as a service 707,048 400,061 (289,178) - 817,931 Total accumulated amortization 753,198 447,620 (311,071) - 889,747 Total accumulated depreciation and amortization 211,749,351 10,880,852 (442,130) - 222,188,073 Total capital assets, being depreciated/amortized, net 149,930,968 (7,976,177) (101,116) 3,124,987 144,978,662 Total governmental activities capital assets $ 549,571,823 $ 5,570,506 $ (101,116) $ - $ 555,041,213 Balance Balance June 30, 2024 Additions Deletions Transfers June 30, 2025 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 4 - CAPITAL ASSETS 55 Depreciation and amortization expense was charged to the following functions in the Statement of Activities: General government $ 418,689 Public safety 233,646 Community services 1,227,439 Public works 7,190,496 Community development 24,630 Internal service funds * 1,785,952 Total depreciation/amortization expense $ 10,880,852 Capital asset activity for business- type activities for the year ended June 30, 2025, is as follows: Balance Balance June 30, 2024 Additions Deletions June 30, 2025 Business-type activities: Capital assets, not being depreciated Land $ 39,712,955 $ - $ - $ 39,712,955 Construction-in-progress - - - - Total capital assets, not being depreciated/amortized 39,712,955 - - 39,712,955 Capital assets, being depreciated Buildings and improvements 6,636,465 - - 6,636,465 Equipment and furniture 1,670,293 65,477 (48,666) 1,687,104 Vehicles 946,816 - 946,816 Software 20,255 - - 20,255 Total capital assets, being depreciated 9,273,829 65,477 (48,666) 9,290,640 Right to use lease assets, being amortized Equipment 483,074 - (330,811) 152,263 Total depreciable assets 9,756,903 65,477 (379,477) 9,442,903 Less accumulated depreciation Buildings and improvements 4,366,914 214,546 - 4,581,460 Equipment and furniture 1,653,826 33,415 (48,666) 1,638,575 Vehicles 79,473 191,587 - 271,060 Software 20,255 - - 20,255 Total accumulated depreciation 6,120,468 439,548 (48,666) 6,511,350 Accumulated amortization, equipment 361,977 70,795 (330,811) 101,961 Total accumulated depreciation and amortization 6,482,445 510,343 (379,477) 6,613,311 Total capital assets, being depreciated/amortized, net 3,274,458 (444,866) - 2,829,592 Total business-type activities capital assets $ 42,987,413 $ (444,866) $ - $ 42,542,547 Depreciation and amortization expense was charged to following functions in the Statement of Activities: Golf Course $ 510,343 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 4 - CAPITAL ASSETS (CONTINUED) 56 The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended June 30, 2025: Balance Balance Due Within June 30, 2024 Additions Deletions June 30, 2025 One Year Governmental activities Compensated absences payable*$ 1,185,597 $ 455,691 $ - $ 1,641,288 $ 746,511 Leases 91,795 - 47,668 44,127 20,986 Subscription IT liabilities 282,309 1,074,467 299,955 1,056,821 317,070 Total governmental activities $ 1,559,701 $ 1,530,158 $ 347,623 $ 2,742,236 $ 1,084,567 *Compensated absences shown as a net change. Leases The City has entered into multiple lease agreements for buildings, vehicles, and equipment. The City is required to make principal and interest payments through 2029. The lease agreements have interest rates between 2.46% to 3.74% based on the City's estimated incremental borrowing rate at the inception of the lease. As of June 30, 2025, the net right to use asset balance is $43,447 and the lease liability balance is $44,127. The current year amortization and interest expense associated with the lease activities was $47,559 and $2,347. Remaining principal and interest payments on the lease are as follows: Year Ending June 30,Principal Interest 2027 $ 20,986 $ 1,012 2028 10,060 608 2029 10,418 247 2030 2,663 3 Totals $ 44,127 $ 1,870 Subscription IT Liabilities T h e C i t y h a s e n t e r e d i n t o s e v e r a l S u b s c r i p t i o n - B a s e d I n f o r m a t i o n T e c h n o l o g y A r r a n g e m e n t s ( S B I T A s ) f o r v i r t u a l 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 2031. 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. As of June 30, 2025, the net right to use asset balance is $1,147,307 and the subscription liability balance is $1,056,821. The current year amortization and interest expense associated with the lease activities was $400,061 and $10,759. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 5 - CHANGES IN LONG-TERM LIABILITIES 57 Principal and interest payments on the SBITAs are as follows: Year Ending June 30,Principal Interest 2026 $ 317,070 $ 36,582 2027 338,967 25,555 2028 265,823 13,737 2029 86,732 4,167 2030 44,244 1,655 Thereafter 3,985 115 Totals $ 1,056,821 $ 81,811 The following is a summary of changes in business- type activities long-term liabilities of the City for the fiscal year ended June 30, 2025: Balance Balance Due Within June 30, 2024 Additions Deletions June 30, 2025 One Year Business-Type Activities Leases $ 123,859 $ - $ 72,562 $ 51,297 $ 32,028 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 2.46% to 3.91% based on the City's incremental borrowing rate at the inception of the lease. As of June 30, 2025, the net right to use asset balance is $50,302 and the lease liability balance is $51,297. The current year amortization and interest expense associated with the lease activities was $70,795 and $2,821. Remaining principal and interest payments on the leases are as follows: Year Ending June 30,Principal Interest 2026 $ 32,028 $ 1,417 2027 19,269 241 Totals $ 51,297 $ 1,658 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 5 - CHANGES IN LONG-TERM LIABILITIES (CONTINUED) 58 The City has accrued receivables for three land leases. The remaining receivable for these leases was $2,170,323 for the year ended June 30, 2025. Deferred inflows related to these leases were $2,021,426 as of June 30, 2025. Interest revenue recognized on these leases was $55,425 for the year ended June 30, 2025. Principal receipts of $105,696 were recognized during the fiscal year. The interest rate on the leases ranges from 3.06 to 3.50 percent. Final receipt is expected in fiscal year 2060. Year Ending June 30,Principal Interest 2026 $ 113,401 $ 66,527 2027 121,478 63,848 2028 129,866 61,020 2029 138,809 57,804 2030 142,679 54,413 2031-2035 210,506 242,206 2036-2040 279,923 201,252 2041-2045 279,174 150,810 2046-2050 173,840 118,141 2051-2055 257,647 80,840 2056-2060 323,000 27,192 Totals $ 2,170,323 $ 1,124,053 NOTE 7 - INTERFUND RECEIVABLES AND PAYABLES The composition of current interfund receivable and payable balances is as follows: Due to Other Funds Due to Other Funds Due to Other FundsDue from Other Funds Housing Authority Capital Improvement Non-Major Governmental Total General Fund $ 2,132,708 $ 2,271,106 $ 780,739 $ 5,184,553 NOTE 8 - INTERFUND TRANSFERS Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2025. Transfers Out General Non-major Transfers In Fund Governmental Total General Fund $ - $ 4,993,504 $ 4,993,504 Capital Improvements 4,182,099 2,625,101 6,807,200 Non-Major Funds 3,052,000 - 3,052,000 Golf Course Fund 1,300,000 - 1,300,000 Total $ 8,534,099 $ 7,618,605 $ 16,152,704 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 6 - LEASES - LESSOR ACTIVITIES 59 a.$4,182,099 was transferred from the General Fund to the Capital Improvement Fund to fund various capital projects. b.$2,625,101 w a s t r a n s f e r r e d t o t h e C a p i t a l I m p r o v e m e n t F u n d f r o m v a r i o u s n o n - m a j o r f u n d s t o s u p p o r t various capital project operations and expenses. c.$3,052,000 w a s t r a n s f e r r e d f r o m t h e G e n e r a l F u n d t o v a r i o u s n o n - m a j o r f u n d s t o s u p p o r t v a r i o u s administrative operations and expenses within the City. d.$1,300,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations. e.$4,993,504 was transferred from the Disaster Recovery Fund to the General Fund from ARPA funding to cover general fund operations- police services. 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 (CalPERS). Benefit provisions under these plans are established by State statute and City resolution. CalPERS 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 CalPERS website. Benefits Provided CalPERS 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, 2025 are summarized as follows: Tier I Tier II PEPRA Before On or After On or After Hire date November 1, 2012 November 1, 2012 January 1, 2013 Benefit formula 2.5% @55 2% @60 2% @62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 and up 50 and up 52 and up Monthly benefits, as a % of eligible compensation 2% to 2.5%2% to 2.5%1% to 2% Required employees contributions rates 8.00%7.00%7.75% Required employer contributions rates 14.130%10.150%7.870% CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 8 - INTERFUND TRANSFERS (CONTINUED) 60 Contributions 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 CalPERS. 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 $4,931,801 for the year ended June 30, 2025. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a liability of $608,374 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023. 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, 2024 and 2025 is as follows: Proportion - June 30, 2024 0.0216 % Proportion - June 30, 2025 0.0050 % Change - Increase (Decrease) -0.0166 % For the year ended June 30, 2025, the City recognized pension expense of $1,019,989. At June 30, 2025, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of Resources of Resources Contributions subsequent to the measurement date $ 4,931,801 $ - Changes in assumptions 15,636 - Differences between expected and actual experience 52,600 2,052 Net difference between projected and actual earnings on pension plan investments 35,023 - Change in employer's proportion - 4,479,747 Difference between the city's contribution and proportionate share of contributions 5,337,063 610,586 Total $ 10,372,123 $ 5,092,385 The $4,931,801 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, 2026. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 9 - DEFINED BENEFIT PENSION PLAN (CONTINUED) 61 Deferred Outflows/(Inflows) Year ended June 30,of Resources 2026 $ 153,717 2027 393,587 2028 (187,365) 2029 (12,002) Total $ 347,937 Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2024 ( the measurement date), the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial methods and assumptions: Miscellaneous Valuation Date June 30, 2023 Measurement Date June 30, 2024 Actuarial Cost Method Entry - Age Normal Cost Method Discount Rate 6.90% Inflation 2.30% Projected Salary Increase Varies by Entry Age and Service Mortality Rate Table Derived using CalPERS' Membership Data for all Fund Post - retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies 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, CalPERS 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 9 - DEFINED BENEFIT PENSION PLAN (CONTINUED) 62 These geometric rates of return are summarized in the following table: Strategic Asset Class Allocation Real Return Global equity-cap-weighted 30.00 % 4.54 % 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 % Emerging 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 % 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/(Asset)$ 9,569,984 $ 608,374 $ (6,768,350) Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports. NOTE 10 - DEFINED CONTRIBUTION PLAN 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, 2025, there was one plan member. There are no required contributions by plan members. During the 2024-2025 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 agent, multiple-employer defined benefit healthcare plan. The City contributes on behalf of all eligible retirees’ $157/month for the calendar year 2024 and $158/month for calendar year 2025, 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 9 - DEFINED BENEFIT PENSION PLAN (CONTINUED) 63 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. Benefits Provided Retirees are eligible for medical benefits if they retire at age 50+, have 5+ years of service within CalPERS, and were enrolled in the CalPERS 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, 2024, the most recent valuation date, the following current and former employees were covered by the benefit terms of the plan: Active employees 98 Inactive employees or beneficiaries currently receiving benefits 14 Total 112 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, 2025, the City’s cash contributions to the plan including the implied subsidy were $50,868. Net OPEB Liability/( Asset) Actuarial Assumptions – The net OPEB liability/( asset) in the June 30, 2024, 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 6.10% Inflation 2.30% Investment Rate of Return 6.10% Mortality (1) Healthcare Trend Rate 5.10% for fiscal year 2025, gradually decreasing to an ultimate rate of 3.94% in fiscal year 2075. (1) Derived using CalPERS Membership Date for all Funds Mortality rates were based on the CalPERS 2021 Mortality pre-retirement and post-retirement. Changes of Assumptions Healthcare trend rates were decreased from a rate of 6.5% decreasing gradually to an ultimate rate of 3.73% to 5.10% decreasing gradually to an ultimate rate of 3.94% for the valuation as of June 30, 2024. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 11 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) 64 Discount Rate The discount rate used to measure the total OPEB liability was 6.10 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 Asset: The changes in the net OPEB liability/( asset) for the Plan as of June 30, 2025 are as follows: Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) (a)(b)(c) = (a) - (b) Balance at June 30, 2024 $ 1,522,159 $ 1,856,315 $ (334,156) Changes recognized for the measurement period: Service cost 88,030 - 88,030 Interest on total OPEB liability 87,019 - 87,019 Changes of assumptions (42,148) - (42,148) Contributions-employer - 56,838 (56,838) Net investment income - 151,022 (151,022) Benefit payments, including refunds of employee contributions (56,838) (56,838) - Administrative expense - (931) 931 Net changes during 2024-25 (179,664) 150,091 (329,755) Balance at June 30, 2025 $ 1,342,495 $ 2,006,406 $ (663,911) Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it were calculated using a discount rate that is 1-percentage- point lower (5.10%) or 1-percentage- point higher (7.10%) than the current discount rate: Discount Current Discount Rate -1%Discount Rate Rate +1% (5.10%)(6.10%)(7.10%) Net OPEB liability/(asset)$ (494,266) $ (663,911) $ (806,576) 1% Decrease Current Trend Rate 1% Increase (4.10% decreasing (5.10% decreasing (6.5% decreasing to 2.94%)to 3.94%)to 4.94%) Net OPEB liability/(asset)$ (837,779) $ (663,911) $ 447,899 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 11 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) 65 For the year ended June 30, 2025, the City recognized OPEB expense of $27,289. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contributions subsequent to the measurement date $ 50,868 $ - Changes of assumptions 40,483 55,800 Differences between expected and actual experience 68,228 669,428 Net difference between projected and actual earnings on OPEB plan investments 81,448 - Total $ 241,027 $ 725,228 The $50,868 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, 2026. Other amounts reported as deferred outflows or deferred inflows of resources related to OPEB will be recognized in as OPEB expense as follows: Deferred Outflows/(Inflows) Fiscal year ended June 30,of Resources 2025 $ (48,538) 2026 (4) 2027 (76,129) 2028 (82,987) 2029 (76,502) Thereafter (250,909) Total $ (535,069) 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, 2025 was $6,172,305. 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 11 - OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) 66 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 126 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 f o r t h e p o o l i n g o f s e l f - i n s u r e d l o s s e s , t o p u r c h a s e e x c e s s i n s u r a n c e o r r e i n s u r a n c e , a n d t o a r r a n g e f o r g r o u p 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 D i r e c t o r s . T h e B o a r d o p e r a t e s t h r o u g h a n i n e - m e m b e r E x e c u t i v e C o m m i t t e e . Self-Insurance Programs of the CJPIA Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. 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. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/ 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 2024-25 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 Pollution Legal Liability Insurance – The City of La Quinta participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of La Quinta. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 13 - RISK MANAGEMENT, CALIFORNIA 67 Property Insurance – The City of La Quinta participates in the all-risk property protection program of the Authority. 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 Authority. City of La Quinta property currently has all-risk property insurance protection in the amount of $90,687,543. 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. 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. City of La Quinta property currently has earthquake protection in the amount of $68,556,792. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Crime Insurance – The City of La Quinta purchases crime insurance coverage in the amount of $1,000,000 with a $5,000 deductible. The fidelity coverage is provided through the Authority. 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 i n s u r e d l i a b i l i t y c o v e r a g e i n 2 0 2 4 - 2 0 2 5 . CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 13 - RISK MANAGEMENT (CONTINUED) 68 Fund Balance Classifications At June 30, 2025, the governmental funds report the following fund balance classifications: General Housing Authority Capital Improvement Total Nonmajor Funds Total Governmental Funds Nonspendable Notes and loans receivable $ 5,865,124 $ - $ - $ - $ 5,865,124 Land held for resale 5,403,652 - - - 5,403,652 Prepaid costs 36,870 - - 3,750 40,620 Advances to Successor Agency* 14,375,798 - - - 14,375,798 Total nonspendable 25,681,444 - - 3,750 25,685,194 Restricted General government - - - 841,751 841,751 Public safety - - - 989,756 989,756 Community services - - - 16,774,731 16,774,731 Planning and development - 24,528,484 - 4,658,704 29,187,188 Public works - - - 8,891,020 8,891,020 Capital projects - - - 11,747,272 11,747,272 Section 115 Trust 6,172,305 - - - 6,172,305 Total restricted 6,172,305 24,528,484 - 43,903,234 74,604,023 Committed 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 Total committed 45,000,000 - - - 45,000,000 Assigned Public safety 19,391,133 - - - 19,391,133 Sales Tax Reserve 29,623,592 - - - 29,623,592 Capital projects 31,778,242 - - - 31,778,242 Carryovers 850,000 850,000 Total assigned 81,642,967 - - - 81,642,967 Unassigned 84,454,583 - (6,859,124) (1,875,244) 75,720,215 Total fund balances (deficits)$ 242,951,299 $ 24,528,484 $ (6,859,124) $ 42,031,740 $ 302,652,399 *This long-term receivable is included within the Due from Other Governments line item on the balance sheet. Fund Balance Commitments In the governmental fund financial statements, committed reserves include: CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 14 - FUND BALANCE 69 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 of $15,000,000 was determined 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, 2025, the City has committed $15,000,000 to this category. 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. For the year ended June 30, 2025, the City has committed $13,000,000 to this category. 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. For the year ended June 30, 2025, the City has committed $5,000,000 to this category. 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, 2025, the City has committed $12,000,000 to this category. 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, 2025 is $19,391,133. Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover balances as of June 30, 2025 are $31,778,242. Accumulated resources related to the City’s sales tax Measure G is $29,623,592 as of June 30, 2025. Deficit Fund Balance At June 30, 2025, the following funds had deficit fund balances: Nonmajor Special Revenue Funds Federal Assistance (21,157) Quimby (735,460) Nonmajor Capital Projects Fund Library Development (1,119,421) CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 14 - FUND BALANCE (CONTINUED) 70 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, 2025. 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, 2025, the Golf Course had a loss before transfers of $2,620,084. NOTE 16 - CONSTRUCTION COMMITMENTS Various construction projects were in progress at June 30, 2025. 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, 2025, with an estimated cost to complete. Expenditures Contract to date as of Remaining Project Project Number Amount June 30, 2025 Commitments Capital Improvement Fund Dune Palms Bridge Improvement 111205 $ 29,756,245 $ (29,354,322) $ 401,923 Madison Street Median Landscape Conversion 151604 1,300,000 (635,863) 664,137 La Quinta Landscape renovation Improvement 201603 9,963,148 (7,894,086) 2,069,062 Corporate Yard Admin Offices & Crew 201805 1,591,013 (531,076) 1,059,937 Village Art Plaza Promenade & Cultural Campus 201901 4,810,000 (1,227,979) 3,582,021 Avenue 50 Bridge Spanning The Evacuation Channel 201902 16,349,000 (275,328) 16,073,672 Hwy 111 Corridor Area Plan Implementation 201905 12,284,000 (1,298,756) 10,985,244 Avenue 48 Art and Music Line Project 202008 2,400,000 (288,205) 2,111,795 Dune Palms Rd Pavement Rehab-Fred 202101 1,221,100 (953,534) 267,566 Fritz Burns Park Improvements 202102 11,350,000 (1,426,971) 9,923,029 City Hall Capacity Improvements 202202 800,000 (75) 799,925 Avenue 50 Widening Improvements 202205 1,118,509 (45,804) 1,072,705 Phase II Camera System 202212 1,651,756 (3,430) 1,648,326 Ave 58 Pavement Rehabilitation 202301 1,380,000 (67,766) 1,312,234 Washington Street Connector 202309 1,200,000 (77,413) 1,122,587 SilverRock Dust Control Improvements 202310 1,000,000 - 1,000,000 Citywide Dog Park Improvements 202407 1,500,000 (1,780) 1,498,220 Welcome Center Improvements 202409 750,000 (1,365) 748,635 NOTE 17 - 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. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 15 - GOLF COURSE MANAGEMENT AGREEMENT 71 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 City $ 15,777,560 Cash and investments with fiscal agent 23,252 Total cash and investments $ 15,800,812 See note 2 for required cash and investments disclosures. 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, 2025, 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 Balance June 30, 2024 Additions Deletions June 30, 2025 Deferred charge on refunding $ 13,516,518 $ - $ 1,124,994 $ 12,391,524 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) 72 Long-Term Debt A description of long-term debt outstanding of the Successor Agency as of June 30, 2025, follows: Amount Balance Balance Due Within June 30, 2024 Additions Deletions June 30, 2025 One Year Tax allocation bonds $ 147,865,000 $ - $ 13,355,000 $ 134,510,000 $ 13,485,000 City Loans 21,404,721 70,843 3,505,817 17,969,747 3,575,934 Unamortized premiums/discounts (164,896) - (10,638) (154,258) - Total $ 169,104,825 $ 70,843 $ 16,850,179 $ 152,325,489 $ 17,060,934 2016 Series A 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 $20,280,000 was outstanding. 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 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, 2025, is $23,850,00 with an unamortized discount of $154,258. 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 2026 $ 1,565,000 $ 937,680 $ 2,502,680 2027 1,620,000 882,846 2,502,846 2028 1,675,000 824,065 2,499,065 2029 1,730,000 761,188 2,491,188 2030 1,800,000 692,901 2,492,901 2031-2035 10,585,000 2,149,597 12,734,597 2036-2040 4,605,000 385,246 4,990,246 Totals $ 23,580,000 $ 6,633,523 $ 30,213,523 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) 73 2021 Series A 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, 2025 were $110,930,000. The principal and interest on the bonds are payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas. Future debt service requirements on these bonds are as follows: Year Ending June 30,Principal Interest Total 2026 $ 11,920,000 $ 2,227,651 $ 14,147,651 2027 12,060,000 2,072,532 14,132,532 2028 12,240,000 1,881,273 14,121,273 2029 12,450,000 1,652,389 14,102,389 2030 12,690,000 1,388,145 14,078,145 2031-2035 49,570,000 2,582,696 52,152,696 Totals $ 110,930,000 $ 11,804,686 $ 122,734,686 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, 2025, principal and capitalized interest due to the City of La Quinta was $17,969,747 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 2026 $ 3,575,934 $ - $ 3,575,934 2027 3,647,452 - 3,647,452 2028 3,791,244 - 3,791,244 2029 3,720,401 - 3,720,401 2030 3,234,716 - 3,234,716 Totals $ 17,969,747 $ - $ 17,969,747 CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) 74 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 $152,948,209 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 $20,261,137 and the debt service obligation on the bonds was $16,696,117. Insurance The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at June 30, 2025. NOTE 18 - SUBSEQUENT EVENTS The City evaluated subsequent events for recognition and disclosure through December 19, 2025, the date on which these financial statements were available to be issued. Subsequent to year end, on December 9, 2025, escrow closed on the sale of approximately 130 acres of the SilverRock/Talus project to Turnbridge Equities (TBE), following approval by the U.S. Bankruptcy Court in October 2025. As a result of the closing, the City’s Debtor-In-Possession (DIP) financing loan provided to the prior developer was repaid in full. A reinstated and amended development agreement and related project approvals previously authorized by the City Council now govern the project under the new ownership. The related bankruptcy proceedings remain ongoing, as an appeal filed by a creditor is pending as of the date of issuance of these financial statements. Management has concluded that no other material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements. CITY OF LA QUINTA, CALIFORNIA Notes to Financial Statements For the Year Ended June 30, 2025 NOTE 17 - SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) 75 REQUIRED SUPPLEMENTARY INFORMATION 76 BUDGETARY COMPARISON SCHEDULES 77 General Fund REVENUES Taxes $ 74,270,000 $ 76,825,000 $ 79,662,664 $ 2,837,664 Licenses and permits 2,386,500 2,551,500 2,682,352 130,852 Intergovernmental 253,000 573,000 915,126 342,126 Charges for Services 1,028,700 1,238,700 1,413,876 175,176 Use of money and property 3,890,000 6,925,000 10,255,043 3,330,043 Fines and forfeitures 341,000 416,000 389,449 (26,551) Miscellaneous 745,100 1,025,100 1,335,970 310,870 Total revenues 82,914,300 89,554,300 96,654,480 7,100,180 EXPENDITURES Current: General government City council 346,400 346,400 320,910 25,490 City manager 1,641,100 1,735,600 1,468,243 267,357 City attorney 800,000 800,000 1,519,881 (719,881) Human resources 745,900 858,600 733,241 125,359 City clerk 1,406,570 1,412,570 1,181,644 230,926 Finance 2,103,500 2,113,700 1,873,822 239,878 Central services 2,471,600 6,598,745 5,364,371 1,234,374 Public safety Police 19,608,300 19,760,800 17,338,320 2,422,480 Fire 10,442,110 10,480,230 9,619,773 860,457 Community development Community services administration 716,400 616,800 452,848 163,952 Wellness center operations 658,600 655,300 638,360 16,940 Recreation program & special events 1,956,000 2,069,500 1,549,701 519,799 Parks and recreation 4,538,300 5,706,500 5,556,091 150,409 Marketing & community relations 1,932,600 1,986,500 1,825,073 161,427 Public buildings 1,875,750 1,885,400 1,710,977 174,423 Planning and development Design & development administration 826,800 822,150 730,539 91,611 Planning 856,900 894,700 772,682 122,018 Building 1,513,600 1,524,800 1,467,707 57,093 Code compliance/animal control 1,821,340 1,801,240 1,494,685 306,555 Public safety administration 269,890 269,440 320,433 (50,993) The Hub 1,499,875 1,509,175 1,338,457 170,718 Original Final Actual Amounts Variance with Final Budget Positive (Negative) CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended June 30, 2025 78 Public works Administration 835,797 839,897 615,287 224,610 Development services 539,383 542,883 410,968 131,915 Maintenance/operations - street 1,036,550 1,081,650 678,460 403,190 Engineering services 1,234,400 1,237,500 903,515 333,985 Capital Outlay 210,000 610,000 62,305 547,695 Total expenditures 61,887,665 68,160,080 59,948,293 8,211,787 Excess (deficiency) of revenues over (under) expenditures 21,026,635 21,394,220 36,706,187 15,311,967 OTHER FINANCING SOURCES (USES) Transfers In - 4,993,504 4,993,504 - Transfers Out (21,474,000) (40,288,508) (8,534,099) 31,754,409 Total other financing sources (uses) (21,474,000) (35,295,004) (3,540,595) 31,754,409 Net change in fund balance $ (447,365) $ (13,900,784) 33,165,592 $ 47,066,376 Fund balance-beginning 209,785,707 Fund balance-ending $ 242,951,299 Original Final Actual Amounts Variance with Final Budget Positive (Negative) CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended June 30, 2025 79 Housing Authority Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 1,429,000 $ 1,614,000 $ 2,323,822 $ 709,822 Miscellaneous 101,000 101,000 60,486 (40,514) Total revenues 1,530,000 1,715,000 2,384,308 669,308 EXPENDITURES Current: Community services 250,000 350,000 301,600 48,400 Planning and development 1,765,440 2,298,618 2,277,769 20,849 Capital outlay 200,000 450,000 32,285 417,715 Total expenditures 2,215,440 3,098,618 2,611,654 486,964 Net change in fund balances $ (685,440) $ (1,383,618) (227,346) $ 1,156,272 Fund balance-beginning 24,755,830 Fund balance-ending $ 24,528,484 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Authority For the Year Ended June 30, 2025 80 Schedule of Proportionate Share of the Net Pension Liability - Miscellaneous Plan Proportionate Share Plan's Fiduciary Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30,Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2025 0.0050%$ 608,374 $ 7,743,887 7.9%-% 2024 0.0216% 2,699,409 6,682,312 40.4%76.20% 2023 0.1173% 13,550,553 6,223,072 217.7%76.70% 2022 0.1422% 7,691,773 6,238,425 123.3%88.30% 2021 0.1333% 14,502,311 7,066,830 205.2%75.10% 2020 0.1313% 13,458,200 6,669,204 201.8%75.30% 2019 0.1287% 12,403,691 6,064,875 204.5%75.30% 2018 0.1272% 12,612,523 5,739,416 219.8%73.30% 2017 0.1257% 10,874,098 5,569,002 195.3%74.10% 2016 0.1260% 8,651,290 5,480,758 157.8%78.40% Notes to Schedule of Proportionate Share of the Net Pension Liability: Benefit Changes : None Changes of Assumptions : None 1 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements. CITY OF LA QUINTA, CALIFORNIA Schedule of Proportionate Share of Net Pension Liability - Miscellaneous Plan As of June 30, for the Last Ten Fiscal Years 81 Schedule of Plan Contributions - Miscellaneous Plan 2025 $ 1,001,100 $ 4,931,801 $ (3,930,701) $ 8,554,880 57.6% 2024 1,570,587 1,683,062 (112,475) 7,572,846 22.2% 2023 1,920,092 13,089,144 (11,169,052) 6,682,312 195.9% 2022 4,650,357 4,650,357 - 6,223,072 74.7% 2021 2,581,158 2,581,158 - 6,238,425 41.4% 2020 1,479,137 1,479,137 - 7,066,830 20.9% 2019 1,284,275 1,284,275 - 6,669,204 19.3% 2018 1,061,439 1,061,439 - 6,064,875 17.5% 2017 949,231 949,231 - 5,739,416 16.5% 2016 797,603 797,603 - 5,569,002 14.3% Fiscal Year Actuarially Actual Contribution Contrbution as a Ending Determined Employer Deficiency Covered % of Covered June 30,Contribution Contributions (Excess)Payroll Payroll Notes to Schedule: Valuation Date:June 30, 2024 Methods and assumptions used to determine contribution rates: Actuarial cost Entry age normal Amortization method Level percentage of payroll, closed Asset valuation method Fair Value Inflation 2.50% Salary increases Varies by entry age and service Payroll growth 2.75% Investment rate of return 6.9% net of pension investment and administrative expenses, including inflation. Retirement age The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using the 90% scale MP 2016 published by the Society of Actuaries. CITY OF LA QUINTA, CALIFORNIA Schedule of Plan Contributions - Miscellaneous Plan As of June 30, For the Last Ten Fiscal Years 82 Schedule of OPEB Contributions 2025 $ 21,030 $ 50,868 $ (29,838) $ 7,777,068 0.7% 2024 60,219 56,838 3,381 7,777,068 0.7% 2023 78,734 58,070 20,664 6,682,312 0.9% 2022 101,376 91,530 9,846 6,223,072 1.5% 2021 86,939 89,947 (3,008) 6,238,425 1.4% 2020 90,229 98,490 (8,261) 7,066,830 1.4% 2019 88,280 98,584 (10,304) 6,669,204 1.5% 2018 201,513 1,609,970 (1,408,457) 6,064,875 26.5% Fiscal Year Actuarially Actual Contribution Contrbution as a Ending Determined Employer Deficiency Covered % of Covered June 30,Contribution Contributions (Excess)Payroll Payroll Notes to Schedule: Actuarial Cost Method Entry Age Normal Amortization Valuation Method/Period Level percent of payroll over a closed rolling 30-year period Asset Valuation Method Fair Value Inflation 2.30% Payroll Growth 3.00% per annum, in aggregate Investment Rate of Return 5.50% per annum Healthcare cost-trend rates Assumed to start at 6.5% and gradually decrease each year to an ultimate rate of 3.73% in 2075 Retirement Age Based on assumptions for Public Agency Miscellaneous and Police members published in the 2021 CalPERS Experience Study. Mortality Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Police members. 1 Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. CITY OF LA QUINTA, CALIFORNIA Schedule of OPEB Contributions As of June 30, For the Last Ten Fiscal Years1 83 This page left intentionally blank. 84 Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios 2025 2024 2023 2022 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 TOTAL OPEB LIABILITY Service cost $ 88,030 $ 85,632 $ 85,049 $ 87,732 Interest on total pension liability 87,019 80,987 107,396 102,210 Changes of assumptions (42,148) - 26,883 - Difference between expected and actual experience (255,727) (1,901) (623,785) (1,617) Benefit payments, including refunds of employee contributions (56,838) (58,070) (94,021) (89,947) Net change in total OPEB liability (179,664) 106,648 (498,478) 98,378 Total OPEB liability-beginning 1,522,159 1,415,511 1,913,989 1,815,611 Total OPEB liability-ending (a) 1,342,495 1,522,159 1,415,511 1,913,989 PLAN FIDUCIARY NET POSITION Contributions-employer 56,838 58,070 94,021 89,947 Net investment income 151,022 63,830 (257,883) 336,983 Benefit payments, including refunds of employee contributions (56,838) (58,070) (94,021) (89,947) Administrative expense (931) (514) (518) (624) Net change in fiduciary net position 150,091 63,316 (258,401) 336,359 Plan fiduciary net position-beginning 1,856,315 1,792,999 2,051,400 1,715,041 Plan fiduciary net position-ending (b) 2,006,406 1,856,315 1,792,999 2,051,400 Net OPEB liability/(asset) (a) - (b)$ (663,911) $ (334,156) $ (377,488) $ (137,411) Plan fiduciary net position as a percentage of the total OPEB liability 149.5%122.0%126.7%107.2% Covered-employee payroll $ 8,532,271 $ 6,682,312 $ 6,223,072 $ 6,238,425 Plan net OPEB liability/(asset) as a percentage of covered- employee payroll (7.8)%(5.0)%(6.1)%(2.2)% Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios: Benefit Changes : None Changes of Assumptions : None 1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown. CITY OF LA QUINTA, CALIFORNIA Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios As of June 30, For the Last Ten Fiscal Years1 85 2021 2020 2019 2018 6/30/2020 6/30/2019 6/30/2018 6/30/2017 $ 88,219 $ 85,174 $ 93,438 $ 90,827 97,183 93,071 100,177 93,346 - - - - 44,464 (14,219) (44,229) - 103,495 - 71,533 - (98,490) (98,584) (86,570) (91,822) 234,871 65,442 134,349 92,351 1,580,740 1,515,298 1,380,949 1,288,598 1,815,611 1,580,740 1,515,298 1,380,949 98,490 98,584 1,609,970 - 88,052 106,805 (1,680) - (98,490) (98,584) (86,570) - (803) (327) (406) - 87,249 106,478 1,521,314 - 1,627,792 1,521,314 - - 1,715,041 1,627,792 1,521,314 - $ 100,570 $ (47,052) $ (6,016) $ 1,380,949 94.5%103.0%100.40%-% $ 7,066,830 $ 6,669,204 $ 6,064,875 $ 5,603,428 1.4%(0.7)%(0.1)%24.6% CITY OF LA QUINTA, CALIFORNIA Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios As of June 30, For the Last Ten Fiscal Years1 86 Notes to Required Supplementary InformationGeneral 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 Housing Grant and Transportation Uniform Mitigation Fee Special Revenue Funds. 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, 2025: General Fund Budget Actual Variance General government City manager $ 1,735,600 $ 1,468,243 $ 267,357 City attorney 800,000 1,519,881 (719,881) Planning and development Public safety administration 269,440 320,433 (50,993) CITY OF LA QUINTA, CALIFORNIA Notes to Required Supplementary Information For the Year Ended June 30, 2025 87 SUPPLEMENTARY INFORMATION: Combining and Individual Fund Schedules 88 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: Disaster Recovery Fund - To account for one-time federal funding passed by Congress in 2021, an act designed to deliver relief to American workers and aid in economic recovery in the wake of COVID-19 by providing Coronavirus State and Local Fiscal Recovery Funds for state and local governments. 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. 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. CITY OF LA QUINTA, CALIFORNIA Other Governmental Funds For the Year Ended June 30, 2025 89 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. CITY OF LA QUINTA, CALIFORNIA Other Governmental Funds For the Year Ended June 30, 2025 90 Combining Balance Sheet - Nonmajor Governmental Funds Special Revenue Funds Disaster Recovery State Gas Tax Library and Museum Federal Assistance ASSETS Cash and investments $ 5,830,090 $ 3,025,972 $ 14,695,500 $ - Receivables: Accounts - - - - Taxes - 276,793 - - Accrued interest 5,165 2,681 13,019 - Prepaid costs - - - - Due from other governments - - 1,501,279 138,249 Total assets $ 5,835,255 $ 3,305,446 $ 16,209,798 $ 138,249 LIABILITIES Accounts payable $ - $ 15,036 $ 431,176 $ - Accrued liabilities - 42,298 3,261 - Unearned revenues 4,993,504 - - - Due to other governments - - - - Due to other funds - - - 21,157 Total liabilities 4,993,504 57,334 434,437 21,157 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 138,249 Total deferred inflows of resources - - - 138,249 FUND BALANCES (DEFICITS) Restricted 841,751 3,248,112 15,775,361 - Unassigned - - - (21,157) Total fund balances (deficits) 841,751 3,248,112 15,775,361 (21,157) Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 5,835,255 $ 3,305,446 $ 16,209,798 $ 138,249 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 91 Special Revenue Funds State Law Enforcement Services Lighting and Landscaping Quimby La Quinta Public Safety Officer ASSETS Cash and investments $ 741,389 $ 566,278 $ - $ 62,919 Receivables: Accounts - - - - Taxes - 17,362 - - Accrued interest 657 502 - 56 Prepaid costs - - - - Due from other governments - - - - Total assets $ 742,046 $ 584,142 $ - $ 62,975 LIABILITIES Accounts payable $ - $ 87,690 $ - $ - Accrued liabilities - 19,101 - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - 735,460 - Total liabilities - 106,791 735,460 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Total deferred inflows of resources - - - - FUND BALANCES (DEFICITS) Restricted 742,046 477,351 - 62,975 Unassigned - - (735,460) - Total fund balances (deficits) 742,046 477,351 (735,460) 62,975 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 742,046 $ 584,142 $ - $ 62,975 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 92 Special Revenue Funds Art in Public Places South Coast Air Quality AB 939 Housing Grant ASSETS Cash and investments $ 998,485 $ 157,421 $ 702,871 $ 7,437 Receivables: Accounts - - - - Taxes - - - - Accrued interest 885 140 623 7 Prepaid costs 3,750 - - - Due from other governments - 13,356 3,814 - Total assets $ 1,003,120 $ 170,917 $ 707,308 $ 7,444 LIABILITIES Accounts payable $ - $ 28,574 $ 6,515 $ - Accrued liabilities - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Total liabilities - 28,574 6,515 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Total deferred inflows of resources - - - - FUND BALANCES (DEFICITS) Restricted 999,370 142,343 700,793 7,444 Unassigned - - - - Total fund balances (deficits) 1,003,120 142,343 700,793 7,444 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 1,003,120 $ 170,917 $ 707,308 $ 7,444 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 93 Special Revenue Funds Law Enforcement Measure A Economic Development AB 1379 ASSETS Cash and investments $ 201,156 $ 4,821,707 $ 3,696,482 $ 124,790 Receivables: Accounts - - 83,954 - Taxes - 332,981 - - Accrued interest 179 4,272 3,275 111 Prepaid costs - - - - Due from other governments 11,343 - - - Total assets $ 212,678 $ 5,158,960 $ 3,783,711 $ 124,901 LIABILITIES Accounts payable $ 3,821 $ - $ 16,150 $ 384 Accrued liabilities - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds 24,122 - - - Total liabilities 27,943 - 16,150 384 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 83,954 - Total deferred inflows of resources - - 83,954 - FUND BALANCES (DEFICITS) Restricted 184,735 5,158,960 3,683,607 124,517 Unassigned - - - - Total fund balances (deficits) 184,735 5,158,960 3,683,607 124,517 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 212,678 $ 5,158,960 $ 3,783,711 $ 124,901 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 94 Special Revenue Funds Capital Projects Funds Transportation Uniform Mitigation Fee Maintenance Facilities DIF Infrastructure Civic Center ASSETS Cash and investments $ 38,750 $ 127,671 $ 21,267 $ 2,052,322 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 114 19 1,819 Prepaid costs - - - - Due from other governments - - - - Total assets $ 38,750 $ 127,785 $ 21,286 $ 2,054,141 LIABILITIES Accounts payable $ 32,153 $ 626 $ - $ 2,460 Accrued liabilities - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Total liabilities 32,153 626 - 2,460 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Total deferred inflows of resources - - - - FUND BALANCES (DEFICITS) Restricted 6,597 127,159 21,286 2,051,681 Unassigned - - - - Total fund balances (deficits) 6,597 127,159 21,286 2,051,681 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 38,750 $ 127,785 $ 21,286 $ 2,054,141 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 95 Capital Project Funds Transportation Parks and Recreation Library Development Community Center ASSETS Cash and investments $ 6,165,331 $ 1,687,887 $ - $ 904,687 Receivables: Accounts - - - - Taxes - - - - Accrued interest 5,462 1,496 - 802 Prepaid costs - - - - Due from other governments - - - - Total assets $ 6,170,793 $ 1,689,383 $ - $ 905,489 LIABILITIES Accounts payable $ 8,018 $ 4,212 $ 794 $ 1,912 Accrued liabilities - - - - Unearned revenues - - - - Due to other governments - - 1,118,627 - Due to other funds - - - - Total liabilities 8,018 4,212 1,119,421 1,912 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Total deferred inflows of resources - - - - FUND BALANCES (DEFICITS) Restricted 6,162,775 1,685,171 (794) 903,577 Unassigned - - (1,118,627) - Total fund balances (deficits) 6,162,775 1,685,171 (1,119,421) 903,577 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 6,170,793 $ 1,689,383 $ - $ 905,489 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 96 Capital Projects Funds Debt Service Funds Street Facility Park Facility Fire Facility Financing Authority Total Nonmajor Funds ASSETS Cash and investments $ 88,703 $ 8,355 $ 699,390 $ 750 $ 47,427,610 Receivables: Accounts - - - - 83,954 Taxes - - - - 627,136 Accrued interest 79 8 620 - 41,991 Prepaid costs - - - - 3,750 Due from other governments - - - - 1,668,041 Total assets $ 88,782 $ 8,363 $ 700,010 $ 750 $ 49,852,482 LIABILITIES Accounts payable $ - $ - $ 738 $ 750 $ 641,009 Accrued liabilities - - - - 64,660 Unearned revenues - - - - 4,993,504 Due to other governments - - - - 1,118,627 Due to other funds - - - - 780,739 Total liabilities - - 738 750 7,598,539 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - 222,203 Total deferred inflows of resources - - - - 222,203 FUND BALANCES (DEFICITS) Restricted 88,782 8,363 699,272 - 43,903,234 Unassigned - - - - (1,875,244) Total fund balances (deficits) 88,782 8,363 699,272 - 42,031,740 Total liabilities, deferred inflows of resources, and fund balances (deficits)$ 88,782 $ 8,363 $ 700,010 $ 750 $ 49,852,482 CITY OF LA QUINTA, CALIFORNIA Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 97 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Special Revenue Funds Disaster Recovery State Gas Tax Library and Museum Federal Assistance REVENUES Taxes $ - $ - $ - $ - Assessments - - - - Intergovernmental 4,993,504 2,131,763 4,062,490 - Use of money and property 400,401 154,074 724,012 82 Developer fees - - - - Miscellaneous - - 6,072 - Total revenues 5,393,905 2,285,837 4,792,574 82 EXPENDITURES General government - - - - Public safety - - - - Community services - - 2,216,591 - Planning and development - - - - Public works - 1,695,795 - 23,501 Capital outlay - 10,768 119,320 - Interest and fiscal charges - - - - Total expenditures - 1,706,563 2,335,911 23,501 Excess (deficiency) of revenues over (under) expenditures 5,393,905 579,274 2,456,663 (23,419) OTHER FINANCING SOURCES (USES) Transfers in - 500,000 - - Transfers out (4,993,504) (972,945) (341,286) - Total other financing sources (uses) (4,993,504) (472,945) (341,286) - Net change in fund balances 400,401 106,329 2,115,377 (23,419) Fund balances (deficit)-beginning - 3,141,783 13,659,984 2,262 Change within financial reporting entity 441,350 - - - Fund balances (deficit)-beginning, as restated 441,350 3,141,783 13,659,984 2,262 Fund balances (deficit)-ending $ 841,751 $ 3,248,112 $ 15,775,361 $ (21,157) CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 98 Special Revenue Funds State Law Enforcement Services Lighting and Landscaping Quimby La Quinta Public Safety Officer REVENUES Taxes $ - $ - $ - $ - Assessments - 991,288 - - Intergovernmental 194,664 - - - Use of money and property 35,139 32,292 - 3,175 Developer fees - - - - Miscellaneous - 31,441 - - Total revenues 229,803 1,055,021 - 3,175 EXPENDITURES General government - - - - Public safety 93,345 - - - Community services - - - - Planning and development - - - - Public works - 3,972,828 - - Capital outlay - - - - Interest and fiscal charges - - - - Total expenditures 93,345 3,972,828 - - Excess (deficiency) of revenues over (under) expenditures 136,458 (2,917,807) - 3,175 OTHER FINANCING SOURCES (USES) Transfers in - 2,500,000 - 2,000 Transfers out - - - - Total other financing sources (uses) - 2,500,000 - 2,000 Net change in fund balances 136,458 (417,807) - 5,175 Fund balances (deficit)-beginning 605,588 895,158 (735,460) 57,800 Change within financial reporting entity - - - - Fund balances (deficit)-beginning, as restated 605,588 895,158 (735,460) 57,800 Fund balances (deficit)-ending $ 742,046 $ 477,351 $ - $ (735,460) $ 62,975 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 99 Special Revenue Funds Art in Public Places South Coast Air Quality AB 939 Housing Grant REVENUES Taxes $ - $ - $ 81,514 $ - Assessments - - - - Intergovernmental - 51,145 - 67,475 Use of money and property 51,323 7,572 36,127 237 Developer fees 101,384 - - - Miscellaneous - - - - Total revenues 152,707 58,717 117,641 67,712 EXPENDITURES General government - - - - Public safety - - - - Community services 77,979 - - - Planning and development - 42,562 99,798 1 Public works - - - - Capital outlay 43,899 - - - Interest and fiscal charges - - - - Total expenditures 121,878 42,562 99,798 1 Excess (deficiency) of revenues over (under) expenditures 30,829 16,155 17,843 67,711 OTHER FINANCING SOURCES (USES) Transfers in 50,000 - - - Transfers out (52,547) - - - Total other financing sources (uses) (2,547) - - - Net change in fund balances 28,282 16,155 17,843 67,711 Fund balances (deficit)-beginning 974,838 126,188 682,950 (60,267) Change within financial reporting entity - - - - Fund balances (deficit)-beginning, as restated 974,838 126,188 682,950 (60,267) Fund balances (deficit)-ending $ 1,003,120 $ 142,343 $ 700,793 $ 7,444 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 100 Special Revenue Funds Law Enforcement Measure A Economic Development AB 1379 REVENUES Taxes $ - $ 1,909,694 $ - $ - Assessments - - - - Intergovernmental 11,343 - - 16,994 Use of money and property 10,320 212,260 213,691 6,060 Developer fees - - - - Miscellaneous - - - - Total revenues 21,663 2,121,954 213,691 23,054 EXPENDITURES General government - - - - Public safety 19,398 - - - Community services - - 11,353 - Planning and development - - 4,661 1,697 Public works - - - - Capital outlay - - - - Interest and fiscal charges - - - - Total expenditures 19,398 - 16,014 1,697 Excess (deficiency) of revenues over (under) expenditures 2,265 2,121,954 197,677 21,357 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (430,043) - - Total other financing sources (uses) - (430,043) - - Net change in fund balances 2,265 1,691,911 197,677 21,357 Fund balances (deficit)-beginning 182,470 3,467,049 3,485,930 103,160 Change within financial reporting entity - - - - Fund balances (deficit)-beginning, as restated 182,470 3,467,049 3,485,930 103,160 Fund balances (deficit)-ending $ 184,735 $ 5,158,960 $ 3,683,607 $ 124,517 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 101 Special Revenue Funds Capital Projects Funds Transportation Uniform Mitigation Fee Maintenance Facilities DIF Infrastructure Civic Center REVENUES Taxes $ - $ - $ - $ - Assessments - - - - Intergovernmental - - - - Use of money and property - 15,735 1,092 103,344 Developer fees - 28,897 - 82,727 Miscellaneous - - - - Total revenues - 44,632 1,092 186,071 EXPENDITURES General government - - - - Public safety - - - - Community services - - - - Planning and development - - - - Public works - - - - Capital outlay - - - - Interest and fiscal charges - - - - Total expenditures - - - - Excess (deficiency) of revenues over (under) expenditures - 44,632 1,092 186,071 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (280,000) - - Total other financing sources (uses) - (280,000) - - Net change in fund balances - (235,368) 1,092 186,071 Fund balances (deficit)-beginning 6,597 362,527 20,194 1,865,610 Change within financial reporting entity - - - - Fund balances (deficit)-beginning, as restated 6,597 362,527 20,194 1,865,610 Fund balances (deficit)-ending $ 6,597 $ 127,159 $ 21,286 $ 2,051,681 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 102 Capital Projects Funds Transportation Parks and Recreation Library Development Community Center REVENUES Taxes $ - $ - $ - $ - Assessments - - - - Intergovernmental - - - - Use of money and property 312,600 89,096 - 56,170 Developer fees 21,135 120,043 22,629 54,493 Miscellaneous - - - - Total revenues 333,735 209,139 22,629 110,663 EXPENDITURES General government - - - - Public safety - - - - Community services - - - - Planning and development - - - - Public works - - - - Capital outlay - - - - Interest and fiscal charges - - 23,423 - Total expenditures - - 23,423 - Excess (deficiency) of revenues over (under) expenditures 333,735 209,139 (794) 110,663 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (38,968) (194,665) - (314,647) Total other financing sources (uses) (38,968) (194,665) - (314,647) Net change in fund balances 294,767 14,474 (794) (203,984) Fund balances (deficit)-beginning 5,868,008 1,670,697 (1,118,627) 1,107,561 Change within financial reporting entity - - - - Fund balances (deficit)-beginning, as restated 5,868,008 1,670,697 (1,118,627) 1,107,561 Fund balances (deficit)-ending $ 6,162,775 $ 1,685,171 $ (1,119,421) $ 903,577 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 103 Capital Projects Funds Debt Service Funds Street Facility Park Facility Fire Facility Financing Authority Total Nonmajor Funds REVENUES Taxes $ - $ - $ - $ - $ 1,991,208 Assessments - - - - 991,288 Intergovernmental - - - - 11,529,378 Use of money and property 4,551 429 35,301 750 2,505,833 Developer fees - - 24,682 - 455,990 Miscellaneous - - - - 37,513 Total revenues 4,551 429 59,983 750 17,511,210 EXPENDITURES General government - - - 750 750 Public safety - - - - 112,743 Community services - - - - 2,305,923 Planning and development - - - - 148,719 Public works - - - - 5,692,124 Capital outlay - - - - 173,987 Interest and fiscal charges - - - - 23,423 Total expenditures - - - 750 8,457,669 Excess (deficiency) of revenues over (under) expenditures 4,551 429 59,983 - 9,053,541 OTHER FINANCING SOURCES (USES) Transfers in - - - - 3,052,000 Transfers out - - - - (7,618,605) Total other financing sources (uses) - - - - (4,566,605) Net change in fund balances 4,551 429 59,983 - 4,486,936 Fund balances (deficit)-beginning 84,231 7,934 639,289 - 37,103,454 Change within financial reporting entity - - - - 441,350 Fund balances (deficit)-beginning, as restated 84,231 7,934 639,289 - 37,544,804 Fund balances (deficit)-ending $ 88,782 $ 8,363 $ 699,272 $ - $ 42,031,740 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 104 BUDGETARY COMPARISON SCHEDULES - SPECIAL REVENUE FUNDS 105 Disaster Recovery Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental Revenues $ - $ - $ 4,993,504 $ 4,993,504 Use of Money and Property 30,000 300,000 400,401 100,401 Total revenues 30,000 300,000 5,393,905 5,093,905 OTHER FINANCING SOURCES (USES) Transfers Out - (4,993,504) (4,993,504) - Total other financing sources (uses) - (4,993,504) (4,993,504) - Net change in fund balances $ 30,000 $ (4,693,504) 400,401 $ 5,093,905 Fund balance-beginning 441,350 Fund balance-ending $ 841,751 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Disaster Recovery For the Year Ended June 30, 2025 106 State Gas Tax Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 2,069,000 $ 2,069,000 $ 2,131,763 $ 62,763 Use of money and property 20,000 80,000 154,074 74,074 Total revenues 2,089,000 2,149,000 2,285,837 136,837 EXPENDITURES Current: Public works 1,781,100 2,009,000 1,695,795 313,205 Capital outlay 200,000 650,000 10,768 639,232 Total expenditures 1,981,100 2,659,000 1,706,563 952,437 Excess (deficiency) of revenues over (under) expenditures 107,900 (510,000) 579,274 1,089,274 OTHER FINANCING SOURCES (USES) Transfers in 500,000 500,000 500,000 - Transfers out (1,462,000) (3,118,103) (972,945) 2,145,158 Total other financing sources (uses) (962,000) (2,618,103) (472,945) 2,145,158 Net change in fund balances $ (854,100) $ (3,128,103) 106,329 $ 3,234,432 Fund balance-beginning 3,141,783 Fund balance-ending $ 3,248,112 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gas Tax For the Year Ended June 30, 2025 107 Library and Museum Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 3,000,000 $ 3,000,000 $ 4,062,490 $ 1,062,490 Use of money and property 140,000 365,000 724,012 359,012 Miscellaneous 3,000 3,000 6,072 3,072 Total revenues 3,143,000 3,368,000 4,792,574 1,424,574 EXPENDITURES Current: Community services 2,555,615 2,548,097 2,216,591 331,506 Capital outlay - 150,000 119,320 30,680 Total expenditures 2,555,615 2,698,097 2,335,911 362,186 Excess (deficiency) of revenues over (under) expenditures 587,385 669,903 2,456,663 1,786,760 OTHER FINANCING SOURCES (USES) Transfers out - (2,304,745) (341,286) 1,963,459 Total other financing sources (uses) - (2,304,745) (341,286) 1,963,459 Net change in fund balances $ 587,385 $ (1,634,842) 2,115,377 $ 3,750,219 Fund balance-beginning 13,659,984 Fund balance-ending $ 15,775,361 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library and Museum For the Year Ended June 30, 2025 108 Federal Assistance Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 190,000 $ 168,933 $ - $ (168,933) Use of money and property - - 82 82 Total revenues 190,000 168,933 82 (168,851) EXPENDITURES Current: Public works 23,500 23,500 23,501 (1) Total expenditures 23,500 23,500 23,501 (1) Excess (deficiency) of revenues over (under) expenditures 166,500 145,433 (23,419) (168,852) OTHER FINANCING SOURCES (USES) Transfers out (175,000) (153,933) - (153,933) Total other financing sources (uses) (175,000) (153,933) - (153,933) Net change in fund balances $ (8,500) $ (8,500) (23,419) $ (14,919) Fund balance-beginning 2,262 Fund balance-ending $ (21,157) CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Federal Assistance For the Year Ended June 30, 2025 109 State Law Enforcement Services Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 100,000 $ 100,000 $ 194,664 $ 94,664 Use of money and property 3,000 3,000 35,139 32,139 Total revenues 103,000 103,000 229,803 126,803 EXPENDITURES Current: Public safety 100,000 100,000 93,345 6,655 Total expenditures 100,000 100,000 93,345 6,655 Net change in fund balances $ 3,000 $ 3,000 136,458 $ 133,458 Fund balance-beginning 605,588 Fund balance-ending $ 742,046 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Law Enforcement Services For the Year Ended June 30, 2025 110 Lighting and Landscaping Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Assessments $ 997,000 $ 997,000 $ 991,288 $ (5,712) Use of money and property 3,500 3,500 32,292 28,792 Miscellaneous - 32,000 31,441 (559) Total revenues 1,000,500 1,032,500 1,055,021 22,521 EXPENDITURES Current: Public works 3,957,700 4,538,300 3,972,828 565,472 Total expenditures 3,957,700 4,538,300 3,972,828 565,472 Excess (deficiency) of revenues over (under) expenditures (2,957,200) (3,505,800) (2,917,807) 587,993 OTHER FINANCING SOURCES (USES) Transfers in 3,000,000 3,000,000 2,500,000 500,000 Total other financing sources (uses) 3,000,000 3,000,000 2,500,000 500,000 Net change in fund balances $ 42,800 $ (505,800) (417,807) $ 87,993 Fund balance-beginning 895,158 Fund balance-ending $ 477,351 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Lighting and Landscaping For the Year Ended June 30, 2025 111 Quimby Original Final Actual Amounts Variance with Final Budget Positive (Negative) OTHER FINANCING SOURCES (USES) Transfers out - (262,685) - 262,685 Total other financing sources (uses) - (262,685) - 262,685 Net change in fund balances $ - $ (262,685) - $ 262,685 Fund balance-beginning (735,460) Fund balance-ending $ (735,460) CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Quimby For the Year Ended June 30, 2025 112 La Quinta Public Safety Officer Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 1,000 $ 1,000 $ 3,175 $ 2,175 Total revenues 1,000 1,000 3,175 2,175 OTHER FINANCING SOURCES (USES) Transfers in 2,000 2,000 2,000 - Total other financing sources (uses) 2,000 2,000 2,000 - Net change in fund balances $ 3,000 $ 3,000 5,175 $ 2,175 Fund balance-beginning 57,800 Fund balance-ending $ 62,975 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual La Quinta Public Safety Officer For the Year Ended June 30, 2025 113 Art in Public Places Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 8,000 $ 8,000 $ 51,323 $ 43,323 Developer fees 100,000 100,000 101,384 1,384 Total revenues 108,000 108,000 152,707 44,707 EXPENDITURES Current: Community services 83,000 83,000 77,979 5,021 Capital outlay 150,000 150,000 43,899 106,101 Total expenditures 233,000 233,000 121,878 111,122 Excess (deficiency) of revenues over (under) expenditures (125,000) (125,000) 30,829 155,829 OTHER FINANCING SOURCES (USES) Transfers in 50,000 50,000 50,000 - Transfers out - (508,799) (52,547) 456,252 Total other financing sources (uses) 50,000 (458,799) (2,547) 456,252 Net change in fund balances $ (75,000) $ (583,799) 28,282 $ 612,081 Fund balance-beginning 974,838 Fund balance-ending $ 1,003,120 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Art in Public Places For the Year Ended June 30, 2025 114 South Coast Air Quality Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 52,500 $ 52,500 $ 51,145 $ (1,355) Use of money and property 2,000 2,000 7,572 5,572 Total revenues 54,500 54,500 58,717 4,217 EXPENDITURES Current: Planning and development 40,000 40,000 42,562 (2,562) Total expenditures 40,000 40,000 42,562 (2,562) Net change in fund balances $ 14,500 $ 14,500 16,155 $ 1,655 Fund balance-beginning 126,188 Fund balance-ending $ 142,343 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual South Coast Air Quality For the Year Ended June 30, 2025 115 AB 939 Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Taxes $ 70,000 $ 70,000 $ 81,514 $ 11,514 Use of money and property 10,000 10,000 36,127 26,127 Total revenues 80,000 80,000 117,641 37,641 EXPENDITURES Current: Planning and development 200,000 200,000 99,798 100,202 Total expenditures 200,000 200,000 99,798 100,202 Net change in fund balances $ (120,000) $ (120,000) 17,843 $ 137,843 Fund balance-beginning 682,950 Fund balance-ending $ 700,793 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AB 939 For the Year Ended June 30, 2025 116 Law Enforcement Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 17,500 $ 17,500 $ 11,343 $ (6,157) Use of money and property 6,000 6,000 10,320 4,320 Total revenues 23,500 23,500 21,663 (1,837) EXPENDITURES Current: Public safety 17,000 17,000 19,398 (2,398) Total expenditures 17,000 17,000 19,398 (2,398) Excess (deficiency) of revenues over (under) expenditures 6,500 6,500 2,265 (4,235) OTHER FINANCING SOURCES (USES) Transfers out - (20,376) - 20,376 Total other financing sources (uses) - (20,376) - 20,376 Net change in fund balances $ 6,500 $ (13,876) 2,265 $ 16,141 Fund balance-beginning 182,470 Fund balance-ending $ 184,735 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Law Enforcement For the Year Ended June 30, 2025 117 Measure A Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Taxes $ 1,995,000 $ 1,995,000 $ 1,909,694 $ (85,306) Use of money and property 30,000 100,000 212,260 112,260 Total revenues 2,025,000 2,095,000 2,121,954 26,954 OTHER FINANCING SOURCES (USES) Transfers out (2,335,000) (4,456,987) (430,043) 4,026,944 Total other financing sources (uses) (2,335,000) (4,456,987) (430,043) 4,026,944 Net change in fund balances $ (310,000) $ (2,361,987) 1,691,911 $ 4,053,898 Fund balance-beginning 3,467,049 Fund balance-ending $ 5,158,960 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure A For the Year Ended June 30, 2025 118 Economic Development Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 40,000 $ 100,000 $ 213,691 $ 113,691 Total revenues 40,000 100,000 213,691 113,691 EXPENDITURES Current: Community services 20,000 20,000 11,353 8,647 Planning and development 11,500 11,500 4,661 6,839 Total expenditures 31,500 31,500 16,014 15,486 Net change in fund balances $ 8,500 $ 68,500 197,677 $ 129,177 Fund balance-beginning 3,485,930 Fund balance-ending $ 3,683,607 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Economic Development For the Year Ended June 30, 2025 119 AB 1379 Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 20,000 $ 20,000 $ 16,994 $ (3,006) Use of money and property 1,000 1,000 6,060 5,060 Total revenues 21,000 21,000 23,054 2,054 EXPENDITURES Current: Planning and development 5,500 5,500 1,697 3,803 Total expenditures 5,500 5,500 1,697 3,803 Net change in fund balances $ 15,500 $ 15,500 21,357 $ 5,857 Fund balance-beginning 103,160 Fund balance-ending $ 124,517 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual AB 1379 For the Year Ended June 30, 2025 120 BUDGETARY COMPARISON SCHEDULES – CAPITAL PROJECT FUNDS 121 Capital Improvements Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Intergovernmental $ 4,000,000 $ 32,674,014 $ 7,205,731 $ (25,468,283) Total revenues 4,000,000 32,674,014 7,205,731 (25,468,283) EXPENDITURES Current: Public works - - 955,905 (955,905) Capital outlay 27,218,109 81,672,394 17,731,703 63,940,691 Total expenditures 27,218,109 81,672,394 18,687,608 62,984,786 Excess (deficiency) of revenues over (under) expenditures (23,218,109) (48,998,380) (11,481,877) 37,516,503 OTHER FINANCING SOURCES (USES) Transfers in 23,218,109 50,974,855 6,807,200 (44,167,655) Total other financing sources (uses) 23,218,109 50,974,855 6,807,200 (44,167,655) Net change in fund balances $ - $ 1,976,475 (4,674,677) $ (6,651,152) Fund balance-beginning (2,184,447) Fund balance-ending $ (6,859,124) CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Improvements For the Year Ended June 30, 2025 122 Maintenance Facilities DIF Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 2,000 $ 2,000 $ 15,735 $ 13,735 Developer fees 45,000 45,000 28,897 (16,103) Total revenues 47,000 47,000 44,632 (2,368) OTHER FINANCING SOURCES (USES) Transfers out (100,000) (280,000) (280,000) - Total other financing sources (uses) (100,000) (280,000) (280,000) - Net change in fund balances $ (53,000) $ (233,000) (235,368) $ (2,368) Fund balance-beginning 362,527 Fund balance-ending $ 127,159 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Maintenance Facilities DIF For the Year Ended June 30, 2025 123 Infrastructure Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 1,000 $ 1,000 $ 1,092 $ 92 Total revenues 1,000 1,000 1,092 92 Net change in fund balances $ 1,000 $ 1,000 1,092 $ 92 Fund balance-beginning 20,194 Fund balance-ending $ 21,286 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Infrastructure For the Year Ended June 30, 2025 124 Civic Center Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 3,000 $ 3,000 $ 103,344 $ 100,344 Developer fees 100,000 25,000 82,727 57,727 Total revenues 103,000 28,000 186,071 158,071 OTHER FINANCING SOURCES (USES) Transfers out - (249,925) - 249,925 Total other financing sources (uses) - (249,925) - 249,925 Net change in fund balances $ 103,000 $ (221,925) 186,071 $ 407,996 Fund balance-beginning 1,865,610 Fund balance-ending $ 2,051,681 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Civic Center For the Year Ended June 30, 2025 125 Transportation Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 40,000 $ 40,000 $ 312,600 $ 272,600 Developer fees 100,000 (300,000) 21,135 321,135 Total revenues 140,000 (260,000) 333,735 593,735 OTHER FINANCING SOURCES (USES) Transfers out (1,179,109) (2,437,568) (38,968) 2,398,600 Total other financing sources (uses) (1,179,109) (2,437,568) (38,968) 2,398,600 Net change in fund balances $ (1,039,109) $ (2,697,568) 294,767 $ 2,992,335 Fund balance-beginning 5,868,008 Fund balance-ending $ 6,162,775 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Transportation For the Year Ended June 30, 2025 126 Parks and Recreation Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 3,000 $ 3,000 $ 89,096 $ 86,096 Developer fees 250,000 145,000 120,043 (24,957) Total revenues 253,000 148,000 209,139 61,139 OTHER FINANCING SOURCES (USES) Transfers out - (843,616) (194,665) 648,951 Total other financing sources (uses) - (843,616) (194,665) 648,951 Net change in fund balances $ 253,000 $ (695,616) 14,474 $ 710,090 Fund balance-beginning 1,670,697 Fund balance-ending $ 1,685,171 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Parks and Recreation For the Year Ended June 30, 2025 127 Library Development Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Developer fees $ 50,000 $ 50,000 $ 22,629 $ (27,371) Total revenues 50,000 50,000 22,629 (27,371) EXPENDITURES Debt service: Interest and fiscal charges 15,000 15,000 23,423 (8,423) Total expenditures 15,000 15,000 23,423 (8,423) Net change in fund balance $ 35,000 $ 35,000 (794) $ (35,794) Fund balance-beginning (1,118,627) Fund balance-ending $ (1,119,421) CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Development For the Year Ended June 30, 2025 128 Community Center Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 5,000 $ 5,000 $ 56,170 $ 51,170 Developer fees 100,000 100,000 54,493 (45,507) Total revenues 105,000 105,000 110,663 5,663 OTHER FINANCING SOURCES (USES) Transfers out (500,000) (625,000) (314,647) 310,353 Total other financing sources (uses) (500,000) (625,000) (314,647) 310,353 Net change in fund balances $ (395,000) $ (520,000) (203,984) $ 316,016 Fund balance-beginning 1,107,561 Fund balance-ending $ 903,577 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Center For the Year Ended June 30, 2025 129 Street Facility Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 1,000 $ 1,000 $ 4,551 $ 3,551 Total revenues 1,000 1,000 4,551 3,551 Net change in fund balances $ 1,000 $ 1,000 4,551 $ 3,551 Fund balance-beginning 84,231 Fund balance-ending $ 88,782 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Facility For the Year Ended June 30, 2025 130 Park Facility Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 100 $ 100 $ 429 $ 329 Total revenues 100 100 429 329 Net change in fund balances $ 100 $ 100 429 $ 329 Fund balance-beginning 7,934 Fund balance-ending $ 8,363 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Park Facility For the Year Ended June 30, 2025 131 Fire Facility Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 3,000 $ 3,000 $ 35,301 $ 32,301 Developer fees 50,000 50,000 24,682 (25,318) Total revenues 53,000 53,000 59,983 6,983 Net change in fund balances $ 53,000 $ 53,000 59,983 $ 6,983 Fund balance-beginning 639,289 Fund balance-ending $ 699,272 CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Fire Facility For the Year Ended June 30, 2025 132 BUDGETARY COMPARISON SCHEDULES – DEBT SERVICE FUNDS 133 Financing Authority Original Final Actual Amounts Variance with Final Budget Positive (Negative) REVENUES Use of money and property $ 1,500 $ 1,500 $ 750 $ (750) Total revenues 1,500 1,500 750 (750) EXPENDITURES Current: General government 1,500 1,500 750 750 Total expenditures 1,500 1,500 750 750 Net change in fund balances $ - $ - - $ - Fund balance-beginning - Fund balance-ending $ - CITY OF LA QUINTA, CALIFORNIA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Financing Authority For the Year Ended June 30, 2025 134 Internal Service Funds Internal service funds are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The City of La Quinta has the following Internal Service Funds: Equipment Replacement Fund – 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. CITY OF LA QUINTA, CALIFORNIA Internal Service Funds For the Year Ended June 30, 2025 135 Combining Statement of Net Position Equipment Replacement Information Technology Park Equipment and Facilities Insurance Total Internal Service Funds ASSETS Current assets: Cash and investments $ 5,513,434 $ 5,316,568 $ 4,126,054 $ 1,252,805 $ 16,208,861 Receivables: Accrued interest 4,885 4,710 3,656 1,110 14,361 Prepaid costs - 124,847 - - 124,847 Total current assets 5,518,319 5,446,125 4,129,710 1,253,915 16,348,069 Noncurrent: Capital assets, net 1,793,154 1,679,766 11,911,109 - 15,384,029 Total noncurrent assets 1,793,154 1,679,766 11,911,109 - 15,384,029 Total assets 7,311,473 7,125,891 16,040,819 1,253,915 31,732,098 LIABILITIES Current liabilities: Accounts payable 46,967 383,730 4,191 2,918 437,806 Accrued liabilities - 2,469 - - 2,469 Accrued interest 34 5,177 - - 5,211 Subscriptions - 317,070 - - 317,070 Total current liabilities 47,001 708,446 4,191 2,918 762,556 Noncurrent liabilities: Leases 11,271 - - - 11,271 Subscriptions - 739,751 - - 739,751 Total noncurrent liabilities 11,271 739,751 - - 751,022 Total liabilities 58,272 1,448,197 4,191 2,918 1,513,578 NET POSITION Net investment in capital assets 1,781,883 622,945 11,911,109 - 14,315,937 Unrestricted 5,471,318 5,054,749 4,125,519 1,250,997 15,902,583 Total net position $ 7,253,201 $ 5,677,694 $ 16,036,628 $ 1,250,997 $ 30,218,520 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Net Position Internal Service Funds June 30, 2025 136 Statement of Revenues, Expenses and Changes in Net Position Equipment Replacement Information Technology Park Equipment and Facilities Insurance Total Internal Service Funds OPERATING REVENUES Sales and service charges $ 1,608,567 $ 3,259,049 $ 2,050,000 $ 1,369,842 $ 8,287,458 Total operating revenues 1,608,567 3,259,049 2,050,000 1,369,842 8,287,458 OPERATING EXPENSES Administration and general - 54,066 - 240,665 294,731 Contract services - 994,595 395,422 810,168 2,200,185 Software and supplies - 564,527 - - 564,527 Fuel and oil 108,076 - - - 108,076 Repairs and maintenance 901,380 - - - 901,380 Depreciation and amortization 593,398 542,268 650,286 - 1,785,952 Total operating expenses 1,602,854 2,155,456 1,045,708 1,050,833 5,854,851 Operating income (loss) 5,713 1,103,593 1,004,292 319,009 2,432,607 NONOPERATING REVENUES (EXPENSES) Interest revenue 282,331 235,744 180,327 44,399 742,801 Interest expense (1,053) (40,471) - - (41,524) Gain (loss) on disposal of capital assets 30,000 90,410 (22,889) - 97,521 Total nonoperating revenues (expenses) 311,278 285,683 157,438 44,399 798,798 Change in net position 316,991 1,389,276 1,161,730 363,408 3,231,405 Net position-beginning 6,936,210 4,288,418 14,874,898 887,589 26,987,115 Net position-ending $ 7,253,201 $ 5,677,694 $ 16,036,628 $ 1,250,997 $ 30,218,520 CITY OF LA QUINTA, CALIFORNIA Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2025 137 Combining Statement of Cash Flows Equipment Replacement Information Technology Park Equipment and Facilities Insurance Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund charges $ 1,608,567 $ 3,259,049 $ 2,050,000 $ 1,369,842 $ 8,287,458 Payments to suppliers and service providers (992,431) (1,422,648) (1,462,284) (1,047,915) (4,925,278) Net cash provided by (used for) operating activities 616,136 1,836,401 587,716 321,927 3,362,180 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (727,373) (340,583) (565,681) - (1,633,637) Principal paid on capital debt (38,288) (249,553) - - (287,841) Interest paid on capital debt (1,161) (121,027) - - (122,188) Proceeds from sales of assets 30,000 - 78,227 - 108,227 Net cash provided by (used for) capital and related financing activities (736,822) (711,163) (487,454) - (1,935,439) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 283,826 235,749 181,256 44,347 745,178 Net cash provided by (used for) investing activities 283,826 235,749 181,256 44,347 745,178 Net increase (decrease) in cash and cash equivalents 163,140 1,360,987 281,518 366,274 2,171,919 Cash and cash equivalents-beginning 5,350,294 3,955,581 3,844,536 886,531 14,036,942 Cash and cash equivalents-ending $ 5,513,434 $ 5,316,568 $ 4,126,054 $ 1,252,805 $ 16,208,861 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2025 138 Equipment Replacement Information Technology Park Equipment and Facilities Insurance Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Operating income (loss)$ 5,713 $ 1,103,593 $ 1,004,292 $ 319,009 $ 2,432,607 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation/amortization expense 593,398 542,268 650,286 - 1,785,952 (Increase) decrease in prepaid items - (4,048) - - (4,048) Increase (decrease) in accounts payable 17,025 194,176 (1,066,862) 2,918 (852,743) Increase (decrease) in accrued liabilities - 412 - - 412 Total adjustments 610,423 732,808 (416,576) 2,918 929,573 Net cash provided by (used for) operating activities $ 616,136 $ 1,836,401 $ 587,716 $ 321,927 $ 3,362,180 CITY OF LA QUINTA, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2025 139 STATISTICAL SECTION 140 CITY OF LA QUINTA DESCRIPTION OF STATISTICAL SECTION CONTENTS JUNE 30, 2025 This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, the note disclosures, and required supplementary information says about the government’s overall financial health. Contents:Pages: 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 . . . . . . . . . . . . . .142 Revenue Capacity: these schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157 Debt Capacity: these schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176 Operating Information: these schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180 Sources: Unless otherwise noted, the information in these schedules are derived from the annual comprehensive financial reports for the relevant year. 141 FINANCIAL TRENDS 142 Net Position by Component Last Ten Fiscal Years (Accrual basis of accounting) Net Position by Component Fiscal Year 2016 2017 2018 2019 2020 Governmental Activities Net investment in capital assets $ 516,499,682 $ 517,039,487 $ 510,913,594 $ 519,221,969 $ 509,777,422 Restricted 61,148,731 38,824,860 39,204,789 44,815,499 46,001,248 Unrestricted 84,439,071 118,125,125 130,950,644 138,584,041 142,418,499 Total Governmental Activities Net Position 662,087,484 673,989,472 681,069,027 702,621,509 698,197,169 Business-Type Activities Net investment in capital assets 43,898,784 43,836,868 43,585,880 43,375,536 39,712,955 Unrestricted (5,086,906) (5,140,966) (5,203,212) 240,125 3,145,820 Total Business-Type Activities Net Position 38,811,878 38,695,902 38,382,668 43,615,661 42,858,775 Primary Government Net investment in capital assets 560,398,466 560,876,355 554,499,474 562,597,505 549,490,377 Restricted 61,148,731 38,824,860 39,204,789 44,815,499 46,001,248 Unrestricted 79,352,165 112,984,159 125,747,432 138,824,166 145,564,319 Total Primary Government Net Position $ 700,899,362 $ 712,685,374 $ 719,451,695 $ 746,237,170 $ 741,055,944 CITY OF LA QUINTA 143 Table 1 Fiscal Year 2021 2022 2023 2024 2025 Governmental Activities: $ 519,203,177 $ 517,697,036 $ 532,628,308 $ 549,197,719 $ 551,740,125 Net investment in capital assets 46,711,801 54,412,355 61,906,132 70,215,219 106,639,960 Restricted 162,887,430 190,618,323 220,654,047 241,361,988 249,261,146 Unrestricted 728,802,408 762,727,717 815,188,487 860,774,926 907,641,231 Total Governmental Activities Net Position Business-Type Activities: 42,717,914 42,491,762 42,242,526 42,863,554 42,491,250 Net investment in capital assets 368,750 1,036,834 1,166,307 1,365,595 417,815 Unrestricted 43,086,664 43,528,596 43,408,833 44,229,149 42,909,065 Total Business-Type Activities Net Position Primary Government: 561,921,091 560,188,798 574,870,834 592,061,273 594,231,375 Net investment in capital assets 46,711,801 53,601,581 61,906,132 70,215,219 106,639,960 Restricted 163,256,180 192,465,934 221,820,354 242,727,583 249,678,961 Unrestricted $ 771,889,072 $ 806,256,313 $ 858,597,320 $ 905,004,075 $ 950,550,296 Total Primary Government Net Position 144 Changes in Net Position Last Ten Fiscal Years (Accrual basis of accounting) Changes in Net Position Fiscal Year 2016 2017 2018 2019 2020 Expenses Governmental activities: General government $ 5,645,004 $ 5,565,727 $ 8,869,174 $ 9,085,863 $ 9,877,251 Public safety 22,067,603 23,378,824 22,508,088 23,164,976 24,009,725 Planning and development 3,359,732 2,882,321 4,352,134 5,913,321 5,845,836 Community services 6,214,098 6,584,268 9,231,268 6,202,084 11,362,950 Public works 12,157,245 10,927,160 15,580,975 4,430,519 32,248,031 Contribution to other agencies — — — — — Interest on long-term debt 343,129 309,463 1,468,971 210,941 98,049 Total governmental activities expenditures 49,786,811 49,647,763 62,010,610 49,007,703 83,441,842 Business-type activities: Golf course 4,373,586 3,965,644 4,318,463 4,558,922 4,148,190 Total business-type activities expenditures 4,373,586 3,965,644 4,318,463 4,558,922 4,148,190 Total Primary Government Expenditures 54,160,397 53,613,407 66,329,073 53,566,625 87,590,032 Program Revenues Governmental activities: Charges for services: General government 192,538 504,127 883,153 516,115 615,348 Public safety 1,378,704 341,368 367,848 376,249 367,277 Planning and development 467,053 564,327 724,499 636,683 799,040 Community services 386,824 453,098 442,656 479,542 366,896 Public works 1,134,630 741,703 1,054,902 1,119,816 1,436,362 Operating grants and contributions 12,213,338 6,187,803 4,259,916 5,623,509 7,817,482 Capital grants and contributions 1,076,145 3,316,153 4,455,060 5,462,395 9,613,752 Total governmental activities program revenues 16,849,232 12,108,579 12,188,034 14,214,310 21,016,157 Business-type activities: Charges for services: Golf course 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Capital grants and contributions — — — — — Total business-type activities program revenues 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Total Primary Government Program Revenues 20,470,727 15,554,919 15,755,752 17,987,706 23,762,905 Net Revenues (Expenditures): Governmental activities (32,937,579) (37,539,184) (49,822,576) (34,793,394) (62,425,685) Business-type activities (752,091) (519,304) (750,745) (785,526) (1,401,442) Total Net Revenues (Expenditures)$ (33,689,670) $ (38,058,488) $ (50,573,321) $ (35,578,920) $ (63,827,127) CITY OF LA QUINTA 145 TABLE 2 Changes in Net Position Fiscal Year 2021 2022 2023 2024 2025 Expenditures: Governmental activities: $ 8,106,209 $ 9,733,224 $ 17,213,248 $ 10,727,413 $ 10,728,288 General government 24,429,310 25,741,782 25,457,350 29,156,519 24,672,278 Public safety 6,508,522 4,716,745 3,146,264 8,432,348 8,123,885 Planning and development 6,958,234 8,439,863 9,550,001 13,647,971 14,853,039 Community services 11,438,197 14,985,480 14,043,797 10,982,293 20,770,395 Public works — — — — — Contribution to other agencies 42,081 11,914 25,504 48,204 64,947 Interest on long-term debt 57,482,553 63,629,008 69,436,164 72,994,748 79,212,832 Total governmental activities expenditures Business-type activities: 4,169,286 4,746,281 5,520,342 5,643,061 6,885,345 Golf course 4,169,286 4,746,281 5,520,342 5,643,061 6,885,345 Total business-type activities expenditures 61,651,839 68,375,289 74,956,506 78,637,809 86,098,177 Total Primary Government Expenditures Program Revenues: Governmental activities: Charges for services: 1,541,535 1,402,810 1,716,965 3,861,857 4,498,560 General government 770,760 648,914 555,423 988,238 661,788 Public safety 710,529 1,315,760 1,356,426 — — Planning and development 178,554 137,769 185,979 — — Community services 1,503,633 3,378,132 2,736,907 71,595 81,514 Public works 4,413,523 5,786,773 7,136,358 7,265,464 12,582,753 Operating grants and contributions 15,770,048 11,952,031 8,760,788 14,078,555 10,389,593 Capital grants and contributions 24,888,582 24,622,189 22,448,846 26,265,709 28,214,208 Total governmental activities program revenues Business-type activities: Charges for services: 3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Golf course — — — — — Capital grants and contributions 3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Total business-type activities program revenues 28,397,678 29,301,352 27,216,304 31,230,833 32,443,171 Total Primary Government Program Revenues Net Revenues (Expenditures): (32,593,971) (39,006,040) (46,987,318) (46,729,039) (50,998,624) Governmental activities (660,190) (67,118) (752,884) (677,937) (2,656,382) Business-type activities $ (33,254,161) $ (39,073,158) $ (47,740,202) $ (47,406,976) $ (53,655,006) Total Net Revenues (Expenditures) 146 Changes in Net Position - Governmental ActivitiesChanges in Net Position Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 General Revenues and Other Changes in Net Position: Governmental activities: Taxes: Property taxes $ 8,798,296 $ 15,521,335 $ 15,887,015 $ 16,423,843 $ 16,710,544 Transient occupancy taxes 7,835,745 9,433,970 10,752,788 11,230,915 8,079,394 Sales tax 9,107,046 10,060,305 18,956,985 20,905,243 19,136,015 Franchise taxes 1,799,938 1,815,491 1,977,179 2,032,848 1,996,593 Business license taxes 334,465 365,451 345,187 418,707 378,744 Other taxes 516,964 585,333 718,472 713,237 662,545 Motor vehicle in lieu, unrestricted 3,651,549 3,813,213 3,941,348 4,086,536 4,290,417 Investment income 2,390,468 442,710 803,654 5,150,613 5,110,358 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets — — — — — Miscellaneous 376,193 460,614 649,566 394,347 1,404,143 Special Item (interfund loan payoff) — — — (5,553,561) — Extraordinary gain/loss on dissolution of RDA — 7,344,050 3,624,121 993,148 867,792 Transfers (115,400) (401,300) (434,000) (450,000) (635,200) Total governmental activities 34,695,264 49,441,172 57,222,315 56,345,876 58,001,345 Business-type activities: Investment income 4,282 2,028 3,511 14,958 9,356 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets — — — — — Net Increase (Decrease) of Investment Fair Value Miscellaneous 218,823 — — 5,553,561 — Transfers 115,400 401,300 434,000 450,000 635,200 Total business-type activities 338,505 403,328 437,511 6,018,519 644,556 Total Primary Government 35,033,769 49,844,500 57,659,826 62,364,395 58,645,901 Changes in Net Position Governmental activities 1,757,685 11,901,988 7,399,739 21,552,482 (4,424,340) Business-type activities (413,586) (115,976) (313,234) 5,232,993 (756,886) Total Primary Government $ 1,344,099 $ 11,786,012 $ 7,086,505 $ 26,785,475 $ (5,181,226) CITY OF LA QUINTA 147 TABLE 3 Fiscal Year 2021 2022 2023 2024 2025 General Revenues and Other Changes in Net Position: Governmental activities: Taxes: 16,893,629 $ 17,823,858 $ 20,697,081 $ 24,646,620 $ 26,750,585 Property taxes 11,847,139 18,365,424 19,262,569 15,682,835 15,612,280 Transient occupancy taxes 23,323,549 28,204,906 28,888,079 29,601,430 29,784,142 Sales tax 2,055,505 2,240,468 2,375,729 2,419,887 2,330,640 Franchise taxes 383,551 446,745 489,738 395,593 442,644 Business license taxes 1,568,997 1,352,585 926,743 1,102,546 1,013,025 Other taxes 4,376,455 4,663,327 5,110,569 5,584,194 6,046,467 Motor vehicle in lieu, unrestricted 1,427,664 219,164 5,058,717 12,708,191 15,975,454 Investment income (5,727,183) (1,519,171) — — Net Increase (Decrease) of Investment Fair Value — — — — — Gain (loss) on sale of capital assets 1,457,788 943,160 1,432,619 1,640,182 1,489,582 Miscellaneous — — — — — Special Item (interfund loan payoff) 739,933 609,515 — — — Extraordinary gain/loss on dissolution of RDA (875,000) (550,000) (600,000) (1,466,000) (1,300,000) Transfers 63,199,210 68,591,969 82,122,673 92,315,478 98,144,819 Total governmental activities Business-type activities: 13,081 4,329 12,456 32,253 36,298 Investment income (45,279) 20,665 — — Net Increase (Decrease) of Investment Fair Value — — — — — Gain (loss) on sale of capital assets (45,279) Net Increase (Decrease) of Investment Fair Value — — — — — Miscellaneous 875,000 550,000 600,000 1,466,000 1,300,000 Transfers 888,081 509,050 633,121 1,498,253 1,336,298 Total business-type activities 64,087,291 69,101,019 82,755,794 93,813,731 99,481,117 Total Primary Government Changes in Net Position 30,605,239 29,585,150 35,135,355 45,586,439 47,146,195 Governmental activities 227,891 441,932 (119,763) 820,316 (1,320,084) Business-type activities $ 30,833,130 $ 30,027,082 $ 35,015,592 $ 46,406,755 $ 45,826,111 Total Primary Government 148 Changes in Net Position - Governmental Activities Last Ten Fiscal Years (Accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 Expenses General government $ 5,645,004 $ 5,565,727 $ 8,869,174 $ 9,085,863 $ 9,877,251 Public safety 22,067,603 23,378,824 22,508,088 23,164,976 24,009,725 Planning and development 3,359,732 2,882,321 4,352,134 5,913,321 5,845,836 Community services 6,214,098 6,584,268 9,231,268 6,202,084 11,362,950 Public works 12,157,245 10,927,160 15,580,975 4,430,519 32,248,031 Contribution to other agencies — — — — — Interest on long-term debt 343,129 309,463 1,468,971 210,941 98,049 Total Governmental Activities Expenditures 49,786,811 49,647,763 62,010,610 49,007,703 83,441,842 Program Revenues Charges for services: General government 192,538 504,127 883,153 516,115 615,348 Public safety 1,378,704 341,368 367,848 376,249 367,277 Planning and development 467,053 564,327 724,499 636,683 799,040 Community services 386,824 453,098 442,656 479,542 366,896 Public works 1,134,630 741,703 1,054,902 1,119,816 1,436,362 Operating grants and contributions 12,213,338 6,187,803 4,259,916 5,623,509 7,817,482 Capital grants and contributions 1,076,145 3,316,153 4,455,060 5,462,395 9,613,752 Total Governmental Activities Program Revenues 16,849,232 12,108,579 12,188,034 14,214,310 21,016,157 Net Revenues (Expenditures) (32,937,579) (37,539,184) (49,822,576) (34,793,394) (62,425,685) General Revenues and Other Changes in Net Position Taxes: Property taxes 8,798,296 15,521,335 15,887,015 16,423,843 16,710,544 Transient occupancy taxes 7,835,745 9,433,970 10,752,788 11,230,915 8,079,394 Sales tax 9,107,046 10,060,305 18,956,985 20,905,243 19,136,015 Franchise tax 1,799,938 1,815,491 1,977,179 2,032,848 1,996,593 Business license taxes 334,465 365,451 345,187 418,707 378,744 Other tax 516,964 585,333 718,472 713,237 662,545 Motor vehicle in lieu, unrestricted 3,651,549 3,813,213 3,941,348 4,086,536 4,290,417 Investment income 2,390,468 442,710 803,654 5,150,613 5,110,358 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets 376,193 460,614 649,566 394,347 1,404,143 Miscellaneous — — — — — Special item (interfund loan payoff) (5,553,561) — Extraordinary gain/loss on dissolution of RDA — 7,344,050 3,624,121 993,148 867,792 Transfers (115,400) (401,300) (434,000) (450,000) (635,200) Total Governmental Activities 34,695,264 49,441,172 57,222,315 56,345,876 58,001,345 Changes in Net Position $ 1,757,685 $ 11,901,988 $ 7,399,739 $ 21,552,482 $ (4,424,340) CITY OF LA QUINTA 149 TABLE 3 Changes in Net Position - Business-Type Activities Fiscal Year 2021 2022 2023 2024 2025 Expenditures: $ 8,106,209 $ 9,732,445 $ 17,213,248 $ 10,727,413 $ 10,728,288 General government 24,429,310 25,741,782 25,457,350 29,156,519 24,672,278 Public safety 6,508,522 4,716,745 3,146,264 8,432,348 8,123,885 Planning and development 6,958,234 8,439,863 9,550,001 13,647,971 14,853,039 Community services 11,438,197 14,985,480 14,043,797 10,982,293 20,770,395 Public works — — — — — Contribution to other agencies 42,081 11,914 25,504 48,204 64,947 Interest on long-term debt 57,482,553 63,628,229 69,436,164 72,994,748 79,212,832 Total Governmental Activities Expenditures Program Revenues: Charges for services: 1,541,535 1,402,810 1,716,965 3,861,857 4,498,560 General government 770,760 648,914 555,423 988,238 661,788 Public safety 710,529 1,315,760 1,356,426 — — Planning and development 178,554 137,769 185,979 — — Community services 1,503,633 3,378,132 2,736,907 71,595 81,514 Public works 4,413,523 5,786,773 7,136,358 7,265,464 12,582,753 Operating grants and contributions 15,770,048 11,952,031 8,760,788 14,078,555 10,389,593 Capital grants and contributions 24,888,582 24,622,189 22,448,846 26,265,709 28,214,208 Total Governmental Activities Program Revenues (32,593,971) (39,006,040) (46,987,318) (46,729,039) (50,998,624) Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: Taxes: 16,893,629 17,823,858 20,697,081 24,646,620 26,750,585 Property taxes 11,847,139 18,365,424 19,262,569 15,682,835 15,612,280 Transient occupancy taxes 23,323,549 28,204,906 28,888,079 29,601,430 29,784,142 Sales tax 2,055,505 2,240,468 2,375,729 2,419,887 2,330,640 Franchise tax 383,551 446,745 489,738 395,593 442,644 Business license taxes 1,568,997 1,352,585 926,743 1,102,546 1,013,025 Other tax 4,376,455 4,663,327 5,110,569 5,584,194 6,046,467 Motor vehicle in lieu, unrestricted 1,427,664 219,164 5,058,717 12,708,191 15,975,454 Investment income (5,727,183) (1,519,171) — — Net Increase (Decrease) of Investment Fair Value 1,457,788 942,381 — — — Gain (loss) on sale of capital assets — — 1,432,619 1,640,182 1,489,582 Miscellaneous — — — — — Special item (interfund loan payoff) 739,933 609,515 — — — Extraordinary gain/loss on dissolution of RDA (875,000) (550,000) (600,000) (1,466,000) (1,300,000) Transfers 63,199,210 68,591,190 82,122,673 92,315,478 98,144,819 Total Governmental Activities $ 30,605,239 $ 29,585,150 $ 35,135,355 $ 45,586,439 $ 47,146,195 Changes in Net Position 150 Changes in Net Position - Business-type Activities Last Ten Fiscal Years (Accrual basis of accounting) Changes in Net Position - Business-type Activities Fiscal Year 2016 2017 2018 2019 2020 Expenses Golf course $ 4,373,586 $ 3,965,644 $ 4,318,463 $ 4,558,922 $ 4,148,190 Total Business-Type Activities Expenditures 4,373,586 3,965,644 4,318,463 4,558,922 4,148,190 Program revenues Charges for services: Golf course 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Capital grants and contributions — — — — — Total Business-Type Activities Program Revenues 3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Net Revenues (Expenditures) (752,091) (519,304) (750,745) (785,526) (1,401,442) General Revenues and Other Changes in Net Position Investment income 4,282 2,028 3,511 14,958 9,356 Net Increase (Decrease) of Investment Fair Value Gain (loss) on sale of capital assets — — — — — Miscellaneous 218,823 — — 5,553,561 — Transfers 115,400 401,300 434,000 450,000 635,200 Capital contributions — — — — — Total Business-Type Activities 338,505 403,328 437,511 6,018,519 644,556 Changes in Net Position $ (413,586) $ (115,976) $ (313,234) $ 5,232,993 $ (756,886) CITY OF LA QUINTA 151 TABLE 4 Changes in Net Position - Business-Type Activities Fiscal Year 2021 2022 2023 2024 2025 Expenditures: $ 4,169,286 $ 4,746,281 $ 5,520,342 $ 5,643,061 $ 6,885,345 Golf course 4,169,286 4,746,281 5,520,342 5,643,061 6,885,345 Total Business-Type Activities Expenditures Program revenues: Charges for services: 3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Golf course — — — — — Capital grants and contributions 3,509,096 4,679,163 4,767,458 4,965,124 4,228,963 Total Business-Type Activities Program Revenues (660,190) (67,118) (752,884) (677,937) (2,656,382) Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: 13,081 4,329 12,456 32,253 36,298 Investment income (45,279) 20,665 — — Net Increase (Decrease) of Investment Fair Value — — — — — Gain (loss) on sale of capital assets — — — — — Miscellaneous 875,000 550,000 600,000 1,466,000 1,300,000 Transfers — — — — — Capital contributions 888,081 509,050 633,121 1,498,253 1,336,298 Total Business-Type Activities $ 227,891 $ 441,932 $ (119,763) $ 820,316 $ (1,320,084) Changes in Net Position 152 Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Fund Balances of Governmental Funds Fiscal Year 2016 2017 2018 2019 2020 General fund Nonspendable: Prepaid costs $ 204,589 $ 10,578 $ 90,657 $ 37,182 $ 14,065 Land held for resale 8,320,000 8,320,000 8,320,000 5,730,990 5,403,652 Advances to other funds 14,974,800 15,022,660 14,954,085 — — Due from Other Governments 25,105,681 29,154,040 29,611,707 27,915,770 26,069,742 Restricted for: Debt service — — — — — Section 115 Trust (Note 11) 6,540,000 10,249,738 Committed: Emergency Reserve(2) 15,576,000 16,534,000 — — — Natural Disaster Reserve(2) 7,400,000 10,000,000 10,000,000 Economic Disaster Reserve(2) 8,140,000 11,000,000 6,800,000 Post retirement health benefits(3) 1,523,400 1,523,400 — — — Capital Replacement Reserve(2) 2,302,000 — 5,000,000 5,000,000 6,540,000 Cash Flow Reserve(2) 3,894,000 4,134,000 5,000,000 5,000,000 5,000,000 Pension Trust(4) — — 2,000,000 — — Carryovers(5) 4,274,046 120,000 2,186,500 745,300 1,778,800 Other — — — — — Assigned: Continuing appropriations — — — — — Public Safety (Note 14) — 9,371,699 9,754,327 9,864,841 10,491,654 Sales Tax Reserve (Note 14) — — 5,169,970 7,721,975 8,736,219 Capital Projects (Note 14) — 6,322,570 4,996,815 11,853,162 13,155,144 Carryovers (Note 14) — — — — — Unassigned 13,822,012 16,949,526 19,199,506 16,228,627 19,094,651 Total general fund 98,565,571 107,462,473 121,823,567 117,637,847 123,333,665 All other governmental funds Nonspendable: Prepaid costs 8,422 10,349 — 386 2,875 Notes and loans — — — — — Advances to other funds — — — — — Deposits — — — — — Restricted: General government Planning and development projects 18,211,200 22,664,093 22,607,600 22,996,435 23,680,641 Public safety 189,988 83,506 342,919 1,391,721 1,607,101 Community services 9,872,124 10,040,222 10,016,652 13,775,710 14,376,472 Public works 1,250,827 1,546,505 2,033,627 2,667,401 3,208,072 Capital Projects 3,597,221 4,490,534 4,203,991 3,904,492 3,128,962 Debt service — — — Assigned: Continuing appropriations — — — — — Unassigned (11,655,344) (11,423,008) (11,347,062) (1,852,211) (5,175,243) Total all other governmental funds 21,474,438 27,412,201 27,857,727 42,883,934 40,828,880 Total Governmental Funds $ 120,040,009 $ 134,874,674 $ 149,681,294 $ 160,521,781 $ 164,162,545 CITY OF LA QUINTA 153 Table 5 Fund Balances of Governmental Funds Fiscal Year 2021 2022 2023 2024 2025 General fund: Nonspendable: $ 25,246 $ 46,990 $ 125,993 $ 170,577 $ 36,870 Prepaid costs 5,403,652 5,403,652 5,403,652 5,403,652 5,403,652 Land held for resale — — — — 14,375,798 Advances to other funds 24,070,622 21,915,347 19,600,793 17,123,777 — Due from Other Governments Restricted for: — — — — — Debt service 11,381,922 10,137,888 5,317,487 5,666,575 6,172,305 Section 115 Trust (Note 11) Committed: — — — — — Emergency Reserve(2) 10,000,000 10,000,000 15,000,000 15,000,000 15,000,000 Natural Disaster Reserve(2) 11,000,000 11,000,000 13,000,000 13,000,000 13,000,000 Economic Disaster Reserve(2) — — — — — Post retirement health benefits(3) 10,000,000 10,000,000 12,000,000 12,000,000 12,000,000 Capital Replacement Reserve(2) 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Cash Flow Reserve(2) — — — — Pension Trust(4) 1,209,870 1,209,100 2,600,009 900,000 — Carryovers(5) — — — — — Other Assigned: — — — — — Continuing appropriations 11,423,931 11,183,821 11,986,970 15,652,616 19,391,133 Public Safety (Note 14) 15,128,658 15,355,043 29,214,191 32,985,374 29,623,592 Sales Tax Reserve (Note 14) 13,431,089 30,761,847 22,623,372 21,666,520 31,778,242 Capital Projects (Note 14) — — — — 850,000 Carryovers (Note 14) 24,241,553 33,893,325 44,105,041 65,216,616 84,454,583 Unassigned 142,316,543 165,907,013 185,977,508 209,785,707 237,086,175 Total general fund All other governmental funds: Nonspendable: 1,019 96,590 468 500 — Prepaid costs — — — — — Notes and loans — — — — — Advances to other funds — — — — — Deposits Restricted: 841,751 General government 24,751,443 25,118,552 27,585,913 29,154,058 29,187,188 Planning and development projects 931,352 1,073,419 1,278,307 1,287,208 989,756 Public safety 12,813,788 13,159,532 15,711,786 14,634,322 16,774,731 Community services 5,196,324 7,353,021 7,535,519 7,512,849 8,891,020 Public works 3,018,894 6,897,057 9,794,607 11,626,051 11,747,272 Capital Projects — — — — — Debt service Assigned: — — — — — Continuing appropriations (3,182,262) (2,483,120) (8,064,140) (4,098,801) (8,734,368) Unassigned 43,530,558 51,215,051 53,842,460 60,116,187 59,697,350 Total all other governmental funds $ 185,847,101 $ 217,122,064 $ 239,819,968 $ 269,901,894 $ 296,783,525 Total Governmental Funds 154 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified accrual basis of accounting) Changes in Fund Balances of Governmental Funds Fiscal Year 2016 2017 2018 2019 2020 Revenues Taxes $ 28,057,989 $ 41,832,117 $ 44,931,250 $ 48,462,493 $ 44,881,038 Assessments 944,050 953,699 950,541 961,633 957,017 Licenses and permits 1,161,820 1,118,911 1,394,820 1,555,026 1,913,519 Intergovernmental 14,960,676 4,870,334 12,555,259 14,075,980 17,107,595 Charges for services 1,332,541 1,021,336 1,279,864 1,170,825 1,179,592 Use of money and property 7,475,742 4,659,301 2,388,683 4,824,651 5,219,088 Contributions, fines, and forfeitures 28,459 348,345 375,390 375,491 665,193 Developer participation 1,441,075 1,042,568 1,534,628 2,231,471 1,863,587 Miscellaneous 992,282 289,047 1,196,057 2,425,675 1,371,095 Total Revenues 56,394,634 56,135,658 66,606,492 76,083,245 75,157,724 Expenditures Current: General government 5,267,024 5,845,197 7,737,111 10,129,408 7,732,495 Public safety 22,125,962 23,377,755 22,508,088 23,164,976 24,009,725 Planning and development 3,294,259 2,549,779 4,310,589 6,415,466 5,436,281 Community services 4,983,038 4,626,401 5,236,083 5,944,200 6,159,707 Public works 4,101,210 4,025,958 4,146,135 4,219,461 5,421,606 Capital projects 7,209,874 6,859,428 9,015,861 9,096,460 23,150,511 Debt service: Principal retirement 632,615 651,625 666,988 650,000 — Interest and fiscal charges 346,137 307,600 1,460,371 178,080 28,868 Total Expenditures 47,960,119 48,243,743 55,081,226 59,798,051 71,939,193 Excess (Deficiency) of Revenues Over (Under) Expenditures 8,434,515 7,891,915 11,525,266 16,285,194 3,218,531 Other financing sources (uses): Proceeds from sale of land — — — — — Transfers in 6,420,538 21,503,514 7,432,340 12,942,596 16,467,409 Transfers out (6,614,349) (21,904,814) (7,775,107) (13,826,890) (16,912,971) Debt Issuance Proceeds(2) — — — — Capital leases — — — — Proceeds from sale of capital assets — — — — Total Other Financing Sources (Uses) (193,811) (401,300) (342,767) (884,294) (445,562) Extraordinary gain/loss on dissolution of RDA — 7,344,050 3,624,121 993,148 867,792 Special item (interfund loan payoff) — — — (5,553,561) — Net Change in Fund Balances $ 8,240,704 $ 14,834,665 $ 14,806,620 $ 10,840,487 $ 3,640,761 Debt Service as a Percentage of Noncapital Expenditures (1)2.4%2.5%3.3%2.0%0.06% CITY OF LA QUINTA 155 Table 6 Changes in Fund Balances of Governmental Funds Fiscal Year 2021 2022 2023 2024 2025 Revenues: $53,493,786 $65,107,160 $67,267,115 $78,926,323 $81,653,872 Taxes 984,435 969,257 981,315 988,238 991,288 Assessments 2,020,596 4,521,449 3,994,989 2,820,613 2,682,352 Licenses and permits 25,720,328 15,989,135 16,353,942 21,243,975 19,650,235 Intergovernmental 964,710 1,623,951 1,558,784 1,494,422 1,413,876 Charges for services 2,601,482 (3,545,192) 4,592,365 12,247,458 15,084,698 Use of money and property 779,606 657,589 563,494 408,125 389,449 Contributions, fines, and forfeitures 1,844,665 5,584,146 4,216,121 879,431 455,990 Developer participation 645,780 970,399 2,602,248 1,499,269 1,433,969 Miscellaneous 89,055,388 91,877,894 102,130,373 120,507,854 123,755,729 Total Revenues Expenditures Current: 8,464,230 10,515,771 20,967,405 7,601,346 12,462,862 General government 24,429,310 25,741,782 25,457,350 25,374,535 27,015,657 Public safety 6,544,477 5,234,065 6,503,091 7,590,589 8,550,991 Planning and development 5,583,420 6,325,904 8,063,457 12,785,671 14,395,752 Community services 5,287,280 5,654,080 6,470,613 7,117,820 9,256,259 Public works 18,219,385 7,167,446 14,180,312 28,482,857 18,000,280 Capital projects Debt service: — 10,705 10,764 24,452 — Principal retirement 15,133 11,914 25,504 32,495 23,423 Interest and fiscal charges 68,543,235 60,661,667 81,678,496 89,009,765 89,705,224 Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures 20,512,153 31,216,227 20,451,877 31,498,089 34,050,505 Other financing sources (uses): 1,219,485 — — — — Proceeds from sale of land 10,781,267 6,131,440 10,079,550 19,078,824 14,852,704 Transfers in (11,568,281) (6,681,440) (10,679,550) (20,544,474) (16,152,704) Transfers out — — — 49,487 — Debt Issuance Proceeds(2) — — — — — Capital leases — — — — — Proceeds from sale of capital assets 432,471 (550,000) (600,000) (1,416,163) (1,300,000) Total Other Financing Sources (Uses) 739,933 609,515 — — — Extraordinary gain/loss on dissolution of RDA — — — — — Special item (interfund loan payoff) $ 21,684,557 $ 31,275,742 $ 19,851,877 $ 30,081,926 $ 32,750,505 Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures (1)0.03%0.06%0.06%0.09%0.03% 156 REVENUE CAPACITY INFORMATION 157 Tax Revenue by Source 158 Top 25 Bradley-Burns Sales Tax Producers 159 Top 25 Measure G Sales Tax Producers 160 Taxable Sales by Category 161 Taxable Sales by Category 162 Assessed Value of Taxable Property 163 Direct and Overlapping Property Tax Rates 164 Principal Property Taxpayers 165 Property Tax Levies and Collections 166 This page left intentionally blank. 167 DEBT CAPACITY INFORMATION 168 Ratios of Outstanding Debt by Type 169 Ratios of Outstanding Debt by Type 170 Ratios of General Bonded Debt Outstanding 171 CITY OF LA QUINTA TABLE 17 Direct and Overlapping Debt June 30, 2025 (in dollars) Total Assessed Valuation (1)19,725,339,533$ Overlapping Debt (3) 16.69%640,515,000$ 106,914,764$ 51.97%200,619,345 104,257,861 20.09%475,170,000 95,466,405 88.91%155,000 137,814 86.46%345,000 298,270 307,075,114 4.65%1,134,209,783$ 52,718,071$ 4.65%603,055,000 28,029,996 51.97%31,156,380 16,191,348 20.09%6,325,000 1,270,756 Desert Recreation District General Fund Obligations 27.32%993,462 271,384 Total Overlapping General Fund Debt 98,481,555 Overlapping Tax Increment Debt Successor Agencies 12.455-100.00%355,165,000 206,995,105 Total Overlapping Tax Increment Debt Total Gross Overlapping Debt 612,551,774 Less: Riverside County Supported Obligations - Total Net Overlapping Debt 612,551,774 338,056$ 338,056 338,056 612,889,830$ Estimated Share of Overlapping Debt Outstanding Debt 6/30/25 Percentage Applicable (2) Overlapping Tax and Assessment Debt Desert Community College District Coachella Valley Unified School District Desert Sands Unified School District (DSUSD) Total Overlapping Tax and Assessment Debt Overlapping General Fund Debt Riverside County General Fund Obligations Riverside County Pension Obligations Coachella Valley Unified School District Certificates of Participation (COP) Direct General Fund Debt Total Direct General Fund Debt DSUSD Community Facilities District No. 1 Total Net Combined Direct and Overlapping Debt Coachella Valley Water District Assessment District 68 City of La Quinta General Fund Obligations Desert Sands Unified School District COP Notes: (1) Total assessed valuation is from the Equalized Assessor report which includes homeowner exemptions. (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. 172 CITY OF LA QUINTA Legal Debt Margin Information Last Ten Fiscal Years (in dollars) 2016 2017 2018 2019 2020 Assessed valuation (1)11,930,906,878$ 12,457,435,999$ 12,867,519,997$ 13,351,737,881$ 13,980,319,465$ Conversion Percentage 25% 25% 25% 25% 25% Adjusted assessed valuation(2)2,982,726,720 3,114,359,000 3,216,879,999 3,337,934,470 3,495,079,866 Debt limit percentage (2)15%15%15%15%15% Debt limit 447,409,008 467,153,850 482,532,000 500,690,171 524,261,980 - -- -- Legal debt margin 447,409,008$ 467,153,850$ 482,532,000$ 500,690,171$ 524,261,980$ 0.0%0.0%0.0%0.0%0.0% Fisca Total debt applicable to the limit as a percentage of debt limit General obligation bonds (3) Total net debt applicable to limit Notes: (1) Assessed Valuation is from the Equalized Auditor's Net report which excludes the homeowner exemptions (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. Source:Riverside County Auditor Controller 173 TABLE 18 2021 2022 2023 2024 2025 14,359,765,558$ 15,163,622,940$ 16,667,089,894$ 18,200,952,648$ 19,679,681,333$ Assessed valuation (1) 25%25%25%25%25% 3,589,941,390 3,790,905,735 4,166,772,474 4,550,238,162 4,919,920,333 15%15%15%15%15%Debt limit percentage (2) 538,491,208 568,635,860 625,015,871 682,535,724 737,988,050 Debt limit Total net debt applicable to limit - - - - - General obligation bonds (3) 538,491,208$ 568,635,860$ 625,015,871$ 682,535,724$ 737,988,050$ Legal debt margin 0.0% 0.0% 0.0% 0.0% 0.0% al Year Total debt applicable to the limit as a percentage of debt limit 174 Pledged-Revenue Coverage 175 DEMOGRAPHIC AND ECONOMIC INFORMATION 176 Demographic and Economic Statistics 177 Principal Employers 178 Full-time City Employees by Function 179 OPERATING INFORMATION 180 Operating Indicators by Function 181 CITY OF LA QUINTA TABLE 24 Capital Asset Statistics by Function Last Ten Fiscal Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Public Works: 128 128 128 128 129 129 129 129 129 129 34 36 36 36 79 81 81.1 82.6 83.6 85.0 281 372 372 372 372 372 372 382 382 382 54 54 54 54 50 50 50 50 51 51 3,018 5,758 5,758 5,408 4,808 4,808 4,808 4,858 4,858 4,858 8 8 8 8 8 8 8 8 8 9 Parks and Recreation: Parks(4)13 13 13 13 14 14 17 17 18 18 218 218 218 218 - - - - - - 40 40 40 40 - - - - - - 238 238 235 235 235 235 114 114 111 111 111 111 17 17 17 17 17.4 17.4 17.4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Public Safety: Fire Stations 3 3 3 3 3 3 3 3 3 3 Golf Course: 1 1 1 1 1 1 1 1 1 1 Municipal golf courses Undeveloped Park Acreage Park Acreage Traffic signals Traffic signs Bridges(3) Streetlights (2) Hiking Trails (miles) City-Owned Acres(4) City-Improved Acres(4) Fiscal Year Bikepaths (miles) (1) Streets (miles) Senior/Wellness Center Museum Library 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)The decorative streetlights in Old Town were added for the first time in 2017. (3)In 2024-25 the City completed work on the Dune Palms Bridge; the total bridge count has been adjusted to reflect only bridges on public roadways. (4)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. In fiscal year 2023-24, the City added a small park in the Cactus Flower area. 182 CITY OF LA QUINTA TABLE 25 Schedule of Insurance in Force June 30, 2025 Company Name Policy Number Coverage Limits Term Premium National Union Fire Insurance 01-309-02-02 Crime, Forgery, Fraud $1 Million 07/01/24 to 07/01/25 $1,800 Alliant Insurance Services, Inc California Self-Insured All Risk Property Insurance $25 Million 07/01/24 - 07/01/25 $428,956 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 07/01/24 - 07/01/25 $379,413 Joint Powers Pool and Automobile Liability Single Limit per Occurrence Insurance Authority California Self-Insured Workers' Compensation $10 Million 07/01/24 - 07/01/25 $225,876 Joint Powers Pool Per Occurrence Insurance Authority Source:City of La Quinta 183