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2014-2015 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) YEAR ENDED JUNE 30, 2015 CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2015 Prepared By FINANCE DEPARTMENT THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2015 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letterof Transmittal................................................................................................................................. i Listof Principal Officials.........................................................................................................................vi OrganizationalChart............................................................................................................................. vii Certificate of Achievement for Excellence in Financial Reporting(GFOA).......................................... viii FINANCIAL SECTION Independent Auditors' Report.................................................................................................................1 Management's Discussion and Analysis.................................................................................................5 Basic Financial Statements: Government -Wide Financial Statements: Statementof Net Position...............................................................................................................17 Statementof Activities....................................................................................................................18 Fund Financial Statements: Balance Sheet — Governmental Funds..........................................................................................20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position.....................................................................................................23 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds...................................................................................................24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................27 Statement of Net Position — Proprietary Funds..............................................................................28 Statement of Revenues, Expenses and Changes in Fund Net Position — ProprietaryFunds...........................................................................................................................29 Statement of Cash Flows — Proprietary Funds...............................................................................30 Statement of Fiduciary Net Position - Fiduciary Funds..................................................................32 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2014 TABLE OF CONTENTS Page Number FINANCIAL SECTION (CONTINUED) Statement of Changes in Fiduciary Net Position - Fiduciary Funds...............................................33 Notes to Financial Statements..............................................................................................................35 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule by Department — General Fund................................................77 Budgetary Comparison Schedules — Major Special Revenue Funds HousingAuthority PA No. 1.....................................................................................................78 HousingAuthority PA No. 2.....................................................................................................79 Schedules of Proportionate Share of Net Pension Liability: Miscellaneous Plan Tier I.........................................................................................................80 Miscellaneous Plan Tier II........................................................................................................81 Miscellaneous PEPRA Plan.....................................................................................................82 Schedules of Plan Contributions: MiscellaneousPlan Tier I.........................................................................................................83 MiscellaneousPlan Tier II........................................................................................................84 Miscellaneous PEPRA Plan.....................................................................................................85 Notes to Required Supplementary Information..............................................................................87 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Non -Major Governmental Funds.......................................................90 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non -Major Governmental Funds.......................................................................98 Budgetary Comparison Schedules — Special Revenue Funds StateGas Tax.......................................................................................................................105 Library....................................................................................................................................106 FederalAssistance.................................................................................................................107 SLEBG...................................................................................................................................108 IndianGaming........................................................................................................................109 Lightingand Landscaping......................................................................................................110 Quimby...................................................................................................................................111 ArtIn Public Places................................................................................................................112 SouthCoast Air Quality..........................................................................................................113 AB939...................................................................................................................................114 Development Agreement.......................................................................................................115 LawEnforcement...................................................................................................................116 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2015 TABLE OF CONTENTS COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (CONTINUED) Justice Assistance Grant. Measure A ....................... Budgetary Comparison Schedules — Capital Projects Funds Capital Improvement....................................................... CivicCenter..................................................................... Transportation................................................................. Parks and Recreation...................................................... Library Development....................................................... StreetFacility................................................................... ParkFacility..................................................................... FireFacility...................................................................... Budgetary Comparison Schedules — Debt Service Funds Financing Authority .................................................... Combining Statement of Net Position — Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position — Internal Service Funds .......................... Combining Statement of Cash Flows — Internal Service Funds Combining Statement of Net Position — All Agency Funds Combining Statement of Changes in Assets and Liabilities — All Agency Funds STATISTICAL SECTION Net Position by Component............................................................ Changes in Net Position................................................................. Changes in Net Position — Governmental Activities ....................... Changes in Net Position — Business -type Activities ....................... Fund Balances of Governmental Funds ......................................... Changes in Fund Balances of Governmental Funds ...................... Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates ................................... Principal Property Taxpayers......................................................... Property Tax Levies and Collections .............................................. Page 117 118 119 120 121 122 123 124 125 126 127 130 131 132 134 134 138 140 142 145 146 148 151 152 154 155 CITY OF LA QUINTA COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2015 TABLE OF CONTENTS STATISTICAL SECTION (CONTINUED) Ratios of Outstanding Debt by Type........... Ratio of General Bonded Debt Outstanding Direct and Overlapping Debt ...................... Legal Debt Margin Information ................... Pledged -Revenue Coverage ...................... Demographic and Economic Statistics....... Principal Employers .................................... Full-time City Employees ............................ Operating Indicators ................................... Capital Asset Statistics ............................... Schedule of Insurance in Force .................. Page Number 156 158 159 160 162 163 164 165 166 167 168 Xiin!li 62 r � December 11, 2415 To the Citizens of the City of La Quinta, the Honorable Mayor and Members of the City Council I am pleased to present you with the City of La Quinta Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. This transmittal letter provides a non-technical summary of the City's finances, services, achievements and economic outlook. A more detailed discussion of the City's finances can be found in Management's Discussion and Analysis section (MD&A) that immediately follows the independent auditor's report. The MD&A provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Ensuring the financial integrity of our public institutions is crucial to maintain the public's trust. Responsibility for the accuracy of the data and the completeness on fairness of the presentation, including all disclosures, rest 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 operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding to the City's financial activities have been included. The Comprehensive Annual Financial Report was prepared in conformance with Generally Accepted Accounting Principles (GAAP). The City's financial reporting is based upon all Governmental Accounting Standards Board (GASB) pronouncements. Government Code Section 26509 (a) requires that the City, as a local agency of the County, contract with a certified public accountant to perform an annual audit of the accounts and records of the City and that the audit conform to generally accepted auditing standards. Further, Government Code Section 26909 (b) states that an audit report shall be filed with the State Controller and with the County Auditor of the County in which the district is located within 12 months of the end of the fiscal year. In addition, City Ordinance 2.12.040 requires an annual audit be performed by a certified public accountant. This report is published to fulfill these requirements for the fiscal year ended June 30, 2015. 78-495 Calle Tampico i La Quinta I California 92253 1 760.777.7060 1 wwwla-Quinta.orQ Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive frame- work of internal control that has been established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial state- ments are free of any material misstatements. The independent auditor's report is located at the front of the financial section of this report. Lance Soll & Lunghard LLP Certified Public Accountants have issued an unmodified ("clean") opinion on the City of La Qunta's financial statements for the year ended June 30, 2015. 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. The independent auditor concluded based on the audit that there was a reasonable basis for rendering an unmodified opinion that the City of La Quinta's financial statements for the fiscal year ended .lune 30, 2015 are fairly presented in conformity with GAAP. This is the most favorable conclusion and commonly known as a "clean" opinion. Profile of the Government The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City motto is "The Gem of the Desert." The City is governed by a five -member City Council under the Council/Manager form of government. The Mayor is directly elected by the citizens. The Mayor serves a two-year term and the four Council Members serve four-year terms, with two Council Members elected every two years. The Mayor and four Council Members are elected at large. The City was originally incorporated in 1982 as a general law City and it became a charter City in November 1996. The Council appoints the City Manager, who in turn appoints the heads of the various departments. The City of La Quinta provides a ranee of services, which include construction and maintenance of streets and other infrastructure; community development and planning; construction and code compliance; various recreational and cultural activities, and general municipal services. Services are also provided to the City and its citizens by contract and by the direct services of other government agencies and organizations. These services include police and fire protection, library services, visitor and tourist information, city promotion through the La Quinta Chamber of Commerce, water and sewer service, electricity service, refuse collection, public transit, and cable television service. The City of La Quinta is also financially accountable for a legally separate Successor Agency for the former Redevelopment Agency, a Financing Authority, and a Housing Authority. Additional information on these legally separate entities can be found in the notes to the financial statements. Pursuant to City Ordinance 2.08.060 and 2.12.030, the City Manager and Finance Director are responsible for the preparation of the annual budget for City Council consideration prior to the start of the fiscal year. The annual budget serves as the foundation for the City of Lo Quinta's financial planning and control. The budget is prepared by fund, function, department, and line item. Department heads may transfer line item resources within a division with the approval of the City Manager. Transfers between divisions and departments also need approval from the City Manager. Local Economy The City of La Quinta comprises an area of approximately 32 square miles and, as of January 2015 has a full time population of 39,694 according to California Department of Finance records. Nearly 18,000 seasonal residents also call La Quinta home during the months of October through May each year. According to the State of California Employment Development Department, as of October, the unemployment rate for La Quinta was 4.0%, down from the annual average of 5.2% in 2015. La Quinta's unemployment rate was much lower than Riverside County's at 8.2% and the statewide annual average of 7.6%. The City's dominant industries are comprised of recreation and tourism with the following major employers: La Quinta Resort and Club, Desert Sands Unified School District, Wal-Mart Super Center, Costco, Home Depot, 'Rancho La Quinta, Lowe's Home Improvement and Imperial Irrigation District. La Quinta is best known as the Gem of the Desert in the Coachella Valley because of its charm, elegance and opportunities abound. SilverRock Resort, La Quinta's flagship and is home to the nationally acclaimed Arnold Palmer Classic Course. The SilverRock Resort is currently undergoing permitting and entitlements for a $420 Million development with hotels, residential and retail development and a host of amenities. The City also lays claim to the historic La Quinta Resort and Club, originally opened on December 26, 1925. This historic resort is a member of Hilton's Worldwide Waldorf Astoria Hotels & Resorts and includes 620 guestrooms, 98 villas, 535 fireplaces and 41 swimming pools. The facility recently completed a multi-million dollar restoration to complement its storied architecture with contemporary amenities and conveniences. Long-term Financial Planning The City of La Quinta is committed to sound financial governance. The City has a long history of providing a superior level of public safety services, life enrichment opportunities, and a quality environment to its residents, businesses and visitors. In June of 2015 the City Council adopted a conservative budget for fiscal year 2015-2016 based on the current economic conditions. The budget is balanced; all current expenditures are supported by current revenues. The City Council also approved the use General Fund reserves in the amount of $3.5 million for water conservation and flood control capital projects. Including the use of $3.5 million in General Fund reserves, in June of 2015 the City Council also approved $11.2 in funding for various capital improvement projects (CIP) for a total of $14.7 million for the fiscal year of 2015-2016. Included in the CIP budget is General Fund contribution of $1 million for the pavement management program. Other projects include traffic signals, sidewalk repairs and construction, accessibility improvements, and storm drain improvements. La Quinta has cultivated a sound foundation of general fund revenues including sales tax, transient occupancy tax, and property tax. Due to the timing of the City of La Quinta's incorporation in 1982 (after the passage of Proposition 13, the landmark property tax,reform legislation enacted in 1978) the City receives a smaller share of property tax than cities incorporated prior to 1978; therefore the City relies heavily on sales tax and transient occupancy tax. The commitment to maintain the existing quality of life expectations includes addressing the concern that La Quinta's economic base cannot keep pace with escalating public safety costs and infrastructure needs. The elimination of redevelopment and the ever increasing competition the City faces from other markets and tourism venues, both state and national, further drives this concern. Considering measures to strengthen the City's economic base and/or incorporate new revenues is key to maintaining the City's excellent quality of municipal services. The Future In November 2014, the City Council approved the SilverRock Development Program. This public private venture will be responsible for over $420 million dollars in newly constructed improvements including lifestyle and resort hotel and residential offerings that will be complimented by a host of resort retail, conference center and other social gathering amenities. The City has returned a focus to investing in itself by reestablishing an economic development program, with efforts to increase economic vitality by targeting commercial vacancies, promoting tourism and community events, and preserving quality of life. In fact, a commercial vacancy (formerly Sam's Club) was recently acquired by a private entity to repurpose the facility as a convention center, the only of its kind in the eastern Coachella Valley. The facility will seek to initially compliment major events such as Coachella and Stagecoach with well-known performing artists. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of La Quints for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2014. This was the eighteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Pro- gram's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the effi- cient and dedicated service of the finance department staff. Credit also must be given to the Mayor and City Council for their support in maintaining the highest standards of professionalism in the management of the City of La +Quinta's finances. Respectfully submitted, Rita Conrad Finance Director City of La Quinta Directory of Officials June 30, 2015 CITY COUNCIL Linda Evans, Mayor Kristy Franklin, Mayor Pro Tem Lee Osborne, Council Member John Pena, Council Member Robert Radi, Council Member ADMINISTRATION Frank J. Spevacek, City Manager Rita Conrad, Finance Director Edie Hylton, Community Services Director William H. Ihrke, City Attorney Les Johnson, Community Dev. Director Tim Jonasson, Public Works Director/City Engineer Susan Maysels, City Clerk z 0 'Ln H � C4 H � z Q N 0 < .LU Z J CY (1) LL LL 0 r � u % � # / > G _ }\ k/ - % \ § � \ 0\ \\ } ) 3 3 k2 co ) \r \ 2\ �\ \ \� $ a � i ce a 2 V Z O 1-4H a N Z a OC O a z H a a LL O r V LM 0 N 0 N ce a LUJ a V LL r i M N CD m CL c 0 a� c c 0 U M ce Q V Z O 1-4H Q N Z a OC O a z H a Q LL O r V LM 0 N 0 N ce Q LUJ a V LL F I LSE000 CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of La Quinta, California Report on the Financial Statements • David E. Hale, CPA, CFP • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F. Matz, CPA • Bryan S. Gruber, CPA • Deborah A. Harper, CPA • Gary A. Cates, CPA • Michael D. Mangold, CPA • David S. Myers, CPA We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of La Quinta, California, (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Lance, Soil & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL 714.672.0022 Fax 714.672.0331 Orange County Temecula Valley Silicon Valley www.lslcpas.com LSL CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of La Quinta, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2015, 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison schedules for the general fund, Housing Authority PA No. 1, and Housing Authority PA No. 2, the schedule of proportionate share in net pension liability, and the schedule of plan contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. LSL se• 000 •• CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of La Quinta, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2015 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. f � / Brea California December 7, 2015 THIS PAGE INTENTIONALLY LEFT BLANK Management's Discussion and Analysis As management of the City of La Quinta, we offer readers of the City of La Quinta's financial statements this narrative, overview and analysis of the financial activities for the fiscal year ended June 30, 2015. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in an earlier section of this report. All amounts, unless otherwise indicated, are rounded to the nearest thousands of dollars. Financial Highlights • The assets of the City of La Quinta exceeded its liabilities at the close of the most recent fiscal year by $699,555,000 (net position). Of this amount, $69,470,000 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. Approximately $567,614,000 or 81% was invested in capital assets and is not available to meet ongoing obligations. • The governmental activities total net position increased by $3,173,000 and the Business -Type total net position increased by $2,546,000 which is attributable to the SilverRock Golf Course. • As of the close of the current fiscal year, the City of La Quinta's governmental funds reported combined ending fund balances of $103,230,000, an increase of $2,102,000 in comparison with the prior year. This net change is due to General Fund revenues overall being 5.6% higher than budgeted. The bulk of the increased revenue is attributable to higher than expected property tax revenue. The City received $1,308,000 more than budgeted in distributions of property tax from the Redevelopment Property Tax Trust Fund (RPTTF). • The primary reason for this increase is due to a distribution in current year of property tax from the Redevelopment Property Tax Trust Fund (RPTTF) in the amount of $2,037,000. The City received a similar distribution in the prior year. • At the end of the current fiscal year, the unassigned General Fund Balance comprised $13,837,000, or 16%, of the total $86,809,000 General Fund Balance and represented 34% of total General Fund budgeted expenditures including transfers. • The total governmental activities debt decreased by $800,000 during the current fiscal year from $6,199,000 to $5,399,000. This decrease is mainly due to scheduled debt service payments that occurred during the fiscal year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of La Quinta's basic financial statements. The City of La Quinta's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of La Quinta's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City of La Quinta's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of La Quinta is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, for example, earned but unused vacation leave. Both of the government -wide financial statements mentioned above distinguish functions of the City of La Quinta that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of La Quinta include general government, public safety, community services, community development and public works. The business -type activities of the City of La Quinta include the SilverRock Golf course operations. The government -wide financial statements include not only the City of La Quinta itself (known as the primary government), but also the La Quinta Financing Authority and the La Quinta Housing Authority. Although legally separate entities, they function for all practical purposes as departments of the City of La Quinta, and therefore have been included as an integral part of the primary government. The government -wide financial statements can be found in the table of contents under the Financial Section of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of La Quinta, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of La Quinta can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near- term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of La Quinta maintains thirty (30) individual governmental funds, which are distinguished between major and non -major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, two (2) capital project funds, and two (2) special revenue funds. These five (5) funds are considered to be major funds. Data from the other twenty five (25) governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of La Quinta adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found in the table of contents under the heading Basic Financial Statements. Proprietary funds Proprietary funds can be broken down into enterprise and internal service funds. The City of La Quinta maintains one (1) enterprise fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of La Quinta uses an enterprise fund to account for its SilverRock Golf Course operations, which is considered to be a major fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of La Quinta's various functions. The City of La Quinta has three (3) internal service funds to account for its major equipment replacement including vehicles, for its information technology systems, and for its park equipment and facility needs. Because these three services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report The basic proprietary fund financial statements can be found on the pages listed in the table of contents for Proprietary Funds: Statement of Net Position, Statement of Revenues, Expenses and Changes in Fund Net Position, and Statement of Cash Flows. Fiduciary funds Fiduciary funds, also called agency funds, are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City of La Quinta's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on the pages listed in the table of contents for Fiduciary Funds: Statement of Fiduciary Net Position — Fiduciary Funds. Notes to the financial statements The notes to the financial statements provide additional information that is essential to obtain a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on the pages listed in the table of contents for Notes to Financial Statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents the combining statements referred to earlier in connection with non -major governmental funds, internal service funds, and agency funds. The non -major governmental funds' combining statements are presented immediately following the Required Supplementary Information while the combining 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. In the case of the City of La Quinta, assets and deferred outflows exceeded liabilities and deferred inflows by $699,555,000 at the close of the most recent fiscal year, which is $2,316,000 less than the previous year. This reduction is attributed to the deferred inflow of resources relating to pensions and the GASB 68 calculation. The largest portion of the City of La Quinta's Net Position, 81%, for both this year and last year, reflects its investment in capital assets (e.g., land, buildings; machinery, and equipment), net of related debt. The City of La Quinta uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. However, it should be noted that the resources needed to repay the related debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate it. City of La Quinta Net Position An additional portion of the City of La Quinta's net position (9% versus 8% in the prior year) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted Net Position - $69,470,000 (10%) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of La Quinta is able to report positive balances in all three categories of Net Position, both for the government as a whole, as well as for its separate governmental activities; however, the business type unrestricted Net Position had a deficit in its net position of $4,893,000, which is approximately $218,000 more than the previous year. Governmental activities Business -type activities Total 2015 2014 2015 2014 2015 2014 Current and other assets $ 169,644,485 $ 163,106,840 $ (4,567,837) $ (4,404,429) $ 165,076,648 $ 158,702,411 Capital assets 523,599,258 527,743,729 44,118,111 41,354,565 567,717,369 569,098,294 Total assets 693,243,743 690,850,569 39,550,274 36,950,136 732,794,017 727,800,705 Deferred outflows of resources 783,364 - - - 783,364 - Current liabilities 18,834,801 20,092,633 324,810 270,237 19,159,611 20,362,870 Non-current liabilities 12,573,105 5,566,976 - - 12,573,105 5,566,976 Total liabilities 31,407,906 25,659,609 324,810 270,237 31,732,716 25,929,846 Deferred intflows of resources 2,289,402 - - - 2,289,402 - Net position: Net investment in capital assets 523,495,389 527,614,666 44,118,111 41,354,565 567,613,500 568,969,231 Restricted 62,472,221 53,669,248 62,472,221 53,669,248 Unrestricted 74,362,189 83,907,046 (4,892,647) (4,674,666) 69,469,542 79,232,380 Total net position $ 660,329,799 $ 665,190,960 $ 39,225,464 $ 36,679,899 $ 699,555,263 $ 701,870,859 An additional portion of the City of La Quinta's net position (9% versus 8% in the prior year) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted Net Position - $69,470,000 (10%) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of La Quinta is able to report positive balances in all three categories of Net Position, both for the government as a whole, as well as for its separate governmental activities; however, the business type unrestricted Net Position had a deficit in its net position of $4,893,000, which is approximately $218,000 more than the previous year. Governmental activities Governmental activities Net Position increased by $3,173,000 accounting for a .48% 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 • Revenues overall increased by $10,819,000 with the two largest category increases being capital grants and contributions and operating grants and contributions with the exception of the extraordinary loss. The extraordinary loss on dissolution of the former Redevelopment Agency occurred last year and was related to the State disallowing $6,402,000 in loans owed to the City from the former Redevelopment Agency. • Expenses for Governmental Activities overall increased by $7,220,000 (15.6 percent increase). The biggest increases were in the Governmental Activities categories of public works which increased by $5,506,000 or 44 percent and community services which increased by $1,862,000 or 44 percent. • Expenses related to public works governmental activities increased $5,506,000 as compared to the previous year. The primary reason for this change was the pavement management maintenance program and the contribution from the City to the SilverRock golf fund for the SilverRock Canal Relocation project. Governmental Business -type activities activities Total Revenues: 2015 2014 Change 2015 2014 Change 2015 2014 Change Program revenues: Charges for services $ 3,771,088 $ 4,500,263 $ (729,175) $ 3,561,857 $ 3,481,424 $ 80,433 $ 7,332,945 $ 7,981,687 $ (648,742) Operating grants and contributions 16,829,107 14,587,153 2,241,954 - - - 16,829,107 14,587,153 2,241,954 Capital grants and contributions 3,536,444 3,981,286 (444,842) 2,872,122 - 2,872,122 6,408,566 3,981,286 2,427,280 General revenues, transfers and extraordinary item: Propertytaxes 8,776,491 9,193,753 (417,262) - - - 8,776,491 9,193,753 (417,262) Othertaxes 18,208,067 17,671,307 536,760 - - 18,208,067 17,671,307 536,760 Investment income 1,981,343 2,190,357 (209,014) 2,043 1,567 476 1,983,386 2,191,924 (208,538) Motor vehicle in lieu 3,486,367 3,291,042 195,325 - - - 3,486,367 3,291,042 195,325 Extraordinarygain/loss on dissolution of RDA - (6,402,450) 6,402,450 - - - (6,402,450) 6,402,450 Transfers (247,739) (500,000) 252,261 247,739 500,000 (252,261) - - - Miscellaneous 296,346 243,498 52,848 915,164 678,046 237,118 1,211,510 921,544 289,966 Total revenues 56,637,514 48,756,209 7,881,305 7,598,925 4,661,037 2,937,888 64,236,439 53,417,246 10,819,193 - Expenses: General government 5,166,732 4,830,239 336,493 - - - 5,166,732 4,830,239 336,493 Public safety 21,636,149 21,169,423 466,726 - - - 21,636,149 21,169,423 466,726 Planning and development 2,212,013 3,098,015 (886,002) 2,212,013 3,098,015 (886,002) Community services 5,992,362 4,130,085 1,862,277 5,992,362 4,130,085 1,862,277 Public works 18,116,732 12,610,994 5,505,738 18,116,732 12,610,994 5,505,738 Interest on long-term debt 340,716 405,977 (65,261) - - - 340,716 405,977 (65,261) Goff course - - - 5,053,360 4,971,977 81,383 5,053,360 4,971,977 81,383 Total expenses 53,464,704 46,244,733 7,219,971 5,053,360 4,971,977 81,383 58,518,064 51,216,710 7,301,354 Increase in net position before restatements 3,172,810 2,511,476 661,334 2,545,565 (310,940) 2,856,505 5,718,375 2,200,536 3,517,839 Restatements (8,033,971) - (8,033,971) - - - (8,033,971) - (8,033,971) Increase in net position (4,861,161) 2,511,476 (7,372,637) 2,545,565 (310,940) 2,856,505 (2,315,596) 2,200,536 (4,516,132) Netposition- beginning 665,190,960 662,679,484 2,511,476 36,679,899 36,990,839 (310,940) 701,870,859 699,670,323 2,200,536 Netposition- ending $ 660,329,799 $ 665,190,960 $ (4,861,161) $ 39,225,464 $ 36,679,899 $ 2,545,565 $ 699,555,263 $ 701,870,859 $ (2,315,596) • Revenues overall increased by $10,819,000 with the two largest category increases being capital grants and contributions and operating grants and contributions with the exception of the extraordinary loss. The extraordinary loss on dissolution of the former Redevelopment Agency occurred last year and was related to the State disallowing $6,402,000 in loans owed to the City from the former Redevelopment Agency. • Expenses for Governmental Activities overall increased by $7,220,000 (15.6 percent increase). The biggest increases were in the Governmental Activities categories of public works which increased by $5,506,000 or 44 percent and community services which increased by $1,862,000 or 44 percent. • Expenses related to public works governmental activities increased $5,506,000 as compared to the previous year. The primary reason for this change was the pavement management maintenance program and the contribution from the City to the SilverRock golf fund for the SilverRock Canal Relocation project. • Expenses related to community services governmental activities were $1,862,000 higher than the previous reporting period due to a depreciation reallocation, storm costs, and a contribution made to the Coachella Valley Rescue Mission. • Governmental activities contributed to the business -type activities golf course improvements that were reclassified from construction in progress in the current year. These improvements were funded by bonds proceeds from the former redevelopment agency. The primary government transferred $248,000 to the SilverRock Golf fund in order to subsidize operations according to the adopted budget. Business -type activities This was the tenth full year of operations for the SilverRock Golf fund since the golf course began operation in early 2005. Net Position increased by $2,546,000 related mostly to the capital contribution of $2,872,000 from governmental activities. Charges for services primarily consisted of green fees which totaled $3,562,000, and was $80,000 higher than the previous year, with golf course expenses of $5,053,000, which was $81,000 more than the previous year. • In fiscal year 2013-2014 the General Fund transferred $500,000 to the SilverRock Golf fund in order to offset revenue loss from portions of the course being closed while the Coachella canal realignment project was underway. In fiscal year 2014-2015, the General Fund transferred $248,000 to the SilverRock Gold fund in order to subsidize operations. • The total outstanding advance due to the General Fund from the inception of the Golf Course opening is $5,339,000. It is anticipated that these advances will be repaid from future income from SilverRock activities such as transient occupancy tax, sales tax and golf course net income generated on the site in future years. Financial Analysis of the Government's Funds As noted earlier, the City of La Quinta uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds - The focus of the City of La Quinta's governmental funds is to provide information on near-term inflows, outflows, and balances of the funds. Such information is useful in assessing the City of La Quinta's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of La Quinta's governmental funds reported combined ending fund balances of $103,230,000 as follows: City of La Quinta Governmental Fund Balances Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable $ 50,028,311 58% $ - 0% $ 50,028,311 48% Restricted - 0% 29,125,442 177% 29,125,442 28% Committed 22,942,941 26% - 0% 22,942,941 22% Unassigned 13,837,312 16% (12,703,744) -77% 1,133,568 1 % Total $ 86,808,564 $ 16,421 ,698 $ 103,230,262 Governmental fund balances ended the year totaling $103,230,000, an increase of $2,102,000 in comparison with the prior years' ending balance of $101,128,000. Of this amount $50,028,000 or 48% constitutes non -spendable reserves, which means that these reserves are not available to fund operating expenditures of the organization; $29,125,000 or 28% are restricted fund balances which are the result of external limitations on spending; $22,943,000 or 22% are committed fund balances which are the result of self-imposed limitations placed upon the funds by the Governing Board responsible for adopting the fund budget. The remaining fund balance or $1,134,000 represents unassigned fund balances or the residual net resources after taking into consideration the other classifications. General Fund The general fund is the chief operating fund of the City of La Quinta. At the end of the current fiscal year, unassigned fund balance of the general fund was $13,837,000 while total fund balance reached $86,809,000. As a measure of the general fund's liquidity, it may be useful to compare the total general fund balance to budgeted expenditures (including transfers out). The total fund balance represents 216 % of the total budgeted expenditures. The City of La Quinta's general fund balance decreased by $4,825,000 in Fiscal Year 2014-2015. Key factors for this decrease are as follows: • The City transferred $6,995,000 or 20% of the final approved loan balance between the City and the Former Redevelopment Agency from the general fund to the housing authority. This transfer was done in accordance with HSC 34191.4 which states that 20% of the sponsoring entity loan repayments must be transferred to the Low/Mod Fund. The transfer restated the fund balances to correctly reflect the allocation of future loan payments between the General Fund and the Housing PA No. 1 Fund. • The general fund's net change before taking into account the loan transfer to the Housing Authority is an increase of $2,170,000. This net change is due to General Fund revenues overall being 5.6% higher than budgeted. The bulk of the increased revenue is attributable to higher than expected property tax revenue. The City received $1,308,000 more than budgeted in distributions of property tax from the Redevelopment Property Tax Trust Fund (RPTTF). • Actual expenditures were $2,474,000 million less than the final budget, but $4,363,000 higher than FY 2013-2014 expenditure levels. $2,204,000 of expenditure savings has been carried over into FY 2014-2015 for continuing appropriations related to operations and Capital Improvement Project (CIP) continuing appropriations. Housing Authority Project Area No. 1 Fund The Housing Authority fund is used to account for the housing activities of the Housing Authority in Project Area No. 1. The primary purpose of this fund is to promote and to provide quality housing in the City. The fund balance increased by $7,055,000 to end the year at $10,941,000. This increase includes the transfer of the of the loan balance from general fund in the amount of $6,995,000. Housing Authority Project Area No. 2 Fund The Housing Authority fund is used to account for the housing activities of the Housing Authority in Project Area No. 2. The primary purpose of this fund is to promote and to provide quality housing in the City. The fund balance increased by $91,000 to end the year at $1,294,000. Capital Improvement Fund The Capital Improvement fund is primarily used to record the expenditure of funds for capital projects. The fund had thirty five (35) active Capital Improvement Projects budgeted during Fiscal Year 2014-15. The three most active projects during the year were the Senior Center Expansion ($2,104,000), relocation of the Coachella Canal at SilverRock ($1,854,000), and Adams Street Bridge Improvements project ($1,527,000). Other major projects budgeted in the future include Madison Street Median Landscape Conversion, Miles Avenue Median Island Landscape Improvements, North La Quinta Regional Skate and BMX Park, Calle Tampico at Avenida Bermudas Drainage Improvements, Civic Center Campus Parkway Turf Conversion, Eisenhower Drive at Montezuma Roundabout, Eisenhower Drive Pavement Rehabilitation, Park and Facility Security Systems, and Roudel Drainage Improvements. Civic Center Fund The Civic Center fund is primarily used to collect developer impact fees for the construction of the City Hall expansion and the repayment of a portion of the debt service on the original City Hall construction. The City Hall expansion was completed in Fiscal Year 2007-08 and the final repayment of the original City Hall construction bonds is scheduled in Fiscal Year 2018-19. A $7.1 million advance from the General Fund is outstanding at the end of Fiscal Year 2014-15. Proprietary funds The City of La Quinta's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The financial activities of the City enterprise fund have already been addressed in the discussion of the City of La Quinta's business -type activities. In addition, the City has three (3) internal service funds to accumulate resources for equipment and vehicle replacement, information technology activities, and for park equipment and facility replacement. General Fund Budgetary Highlights During the year there was a $4,249,000 increase in appropriations and transfers out between the original ($35,947,000) and final amended budget ($40,196,000). Following are the main components of the changes: • $1,863,000 in carryover appropriations from Fiscal Year 2013-2014 to Fiscal Year 2014-2015. • $270,000 for drainage studies and projects • $350,000 for flood damage repairs • $632,000 toward the City's share of a multijurisdictional freeway intersection project (Jefferson & Interstate 10) • $350,000 for a major street paving project (Monroe St.) The budget increases were possible because of additional unanticipated revenues and the availability of unassigned reserves. Capital Asset and Debt Administration Capital assets The City of La Quinta's investment in capital assets for its governmental and business - type activities as of June 30, 2015, amounts to $567,717,000 (net of accumulated depreciation). This investment in capital assets includes land, right of way, buildings and improvements, machinery and equipment, streets and bridges, and construction in progress. The investment in capital assets decreased this fiscal year due to the disposal of capital assets and depreciation expense which exceeded the purchase of capital assets. 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) Major capital asset events during the current fiscal year included the following: Governmental activities • Recording infrastructure improvements, street improvements, street right of way, street sidewalks and curbs and gutters, traffic signals, and street medians • Highway 111 at Washington Street intersection improvements $949,000 • Sports Complex Lighting Rehabilitation and Expansion $839,000 • Land purchase for future fire station $207,000 • Horseshoe Drive Drainage Improvements $41,000 Business -type activities • The Golf Course capital asset balance at June 30, 2015, was $44,118,000, net of accumulated depreciation. The balance increased by $2,763,000 of which $2,872,000 is attributable to the contribution of capital improvements funded by the Former Redevelopment Agency from the City. The remaining difference relates to capitalized equipment purchased and depreciation expense for the year. Additional information on the City of La Quinta's capital assets can be found in Note 6 to the financial statements. Long-term debt At the end of the current fiscal year, the City of La Quinta had total bonded debt outstanding of $5,399,000. Of the total amount, $2,405,000 of this debt amount represents bonds secured solely by specified revenue sources. Governmental Business -type Description activities activities Total 2015 2014 2015 2014 2015 2014 Land $ 69,816,674 $ 69,609,372 $39,712,954 $36,840,832 $109,529,628 $106,450,204 Buildings and improvements 43,404,761 45,518,392 4,200,754 4,425,600 47,605,515 49,943,992 Equipment and furniture 929,668 1,062,785 204,403 88,133 1,134,071 1,150,918 Vehicles 191,390 154,456 - - 191,390 154,456 Infrastructure 384,832,840 389,031,690 - - 384,832,840 389,031,690 Construction in progress 24,423,925 22,367,034 - - 24,423,925 22,367,034 Total $523,599,258 $527,743,729 $44,118,111 $41,354,565 $567,717,369 $569,098,294 Major capital asset events during the current fiscal year included the following: Governmental activities • Recording infrastructure improvements, street improvements, street right of way, street sidewalks and curbs and gutters, traffic signals, and street medians • Highway 111 at Washington Street intersection improvements $949,000 • Sports Complex Lighting Rehabilitation and Expansion $839,000 • Land purchase for future fire station $207,000 • Horseshoe Drive Drainage Improvements $41,000 Business -type activities • The Golf Course capital asset balance at June 30, 2015, was $44,118,000, net of accumulated depreciation. The balance increased by $2,763,000 of which $2,872,000 is attributable to the contribution of capital improvements funded by the Former Redevelopment Agency from the City. The remaining difference relates to capitalized equipment purchased and depreciation expense for the year. Additional information on the City of La Quinta's capital assets can be found in Note 6 to the financial statements. Long-term debt At the end of the current fiscal year, the City of La Quinta had total bonded debt outstanding of $5,399,000. Of the total amount, $2,405,000 of this debt amount represents bonds secured solely by specified revenue sources. City of La Quinta Outstanding Debt The total outstanding debt decreased by $800,000 during Fiscal Year 2014-15. The decrease was due to regular scheduled debt service payments. Business -type activities carried no long term debt during fiscal years 2014-2015 and 2013-2014. Additional information on the City of La Quinta's long-term debt can be found in Note 7 of the financial statements. Economic Factors and Next Year's Budgets and Rates These factors were considered in preparing the City of La Quinta's budget for Fiscal Year 2015-2016: • The 12 month average unemployment rate for the City of La Quinta as of December 31, 2014 was 5.2%. This rate was significantly lower than the State-wide unemployment rate of 7.5%. The City's rate was down 1.1% from the prior year's average rate of 6.3%. • During the last ten years, the City of La Quinta has been in a growth phase with assessed values increasing from $7.8 billion in Fiscal Year 2005-2006 to $11.37 billion or over 46% percent in Fiscal Year 2014-2015. It is important to note however, that from Fiscal Year 2009-2010 to Fiscal Year 2014-2015 assessed values decreased by approximately 8.43%. • Sales tax has been relatively flat for the last two years and this trend is not expected to change in Fiscal Year 2015-2016. A major contributing factor is leakage of sales from businesses within the City to internet based shopping. • AB1x26 dissolved California Redevelopment Agencies as of January 31, 2012. Due to the loss of Tax Increment, the City's ability to fund future capital projects has been severely curtailed. The City is still exploring ways to replace this funding source. Requests for Information This financial report is designed to provide a general overview of the City of La Quinta's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of La Quinta, Rita Conrad, Finance Director, 78-495 Calle Tampico, La Quinta, CA, 92253 or by telephone at 760-777-7150. Governmental activities Debt type: 2015 2014 Capital leases $ 103,869 $ 129,063 Compensated absences 853,497 838,982 General Liability Retrospective Deposit - 209,320 Loans payable 2,036,277 2,092,100 Revenue bonds 2,405,000 2,930,000 Total $5,398,643 $6,199,465 The total outstanding debt decreased by $800,000 during Fiscal Year 2014-15. The decrease was due to regular scheduled debt service payments. Business -type activities carried no long term debt during fiscal years 2014-2015 and 2013-2014. Additional information on the City of La Quinta's long-term debt can be found in Note 7 of the financial statements. Economic Factors and Next Year's Budgets and Rates These factors were considered in preparing the City of La Quinta's budget for Fiscal Year 2015-2016: • The 12 month average unemployment rate for the City of La Quinta as of December 31, 2014 was 5.2%. This rate was significantly lower than the State-wide unemployment rate of 7.5%. The City's rate was down 1.1% from the prior year's average rate of 6.3%. • During the last ten years, the City of La Quinta has been in a growth phase with assessed values increasing from $7.8 billion in Fiscal Year 2005-2006 to $11.37 billion or over 46% percent in Fiscal Year 2014-2015. It is important to note however, that from Fiscal Year 2009-2010 to Fiscal Year 2014-2015 assessed values decreased by approximately 8.43%. • Sales tax has been relatively flat for the last two years and this trend is not expected to change in Fiscal Year 2015-2016. A major contributing factor is leakage of sales from businesses within the City to internet based shopping. • AB1x26 dissolved California Redevelopment Agencies as of January 31, 2012. Due to the loss of Tax Increment, the City's ability to fund future capital projects has been severely curtailed. The City is still exploring ways to replace this funding source. Requests for Information This financial report is designed to provide a general overview of the City of La Quinta's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of La Quinta, Rita Conrad, Finance Director, 78-495 Calle Tampico, La Quinta, CA, 92253 or by telephone at 760-777-7150. CITY OF LA QUINTA STATEMENT OF NET POSITION JUNE 30, 2015 Assets: Cash and investments Receivables: Accounts Taxes Notes and loans Accrued interest Internal balances Prepaid costs Deposits Due from other governments Inventories Land held for resale Capital assets not being depreciated Capital assets, net of depreciation Total Assets Deferred Outflows of Resources: Deferred items related to pensions Total Deferred Outflows of Resources Liabilities: Accounts payable Accrued liabilities Accrued interest Unearned revenue Deposits payable Due to other governments Noncurrent liabilities: Due within one year Due in more than one year Net OPEB liability Net pension liability Total Liabilities Deferred Inflows of Resources: Deferred items related to pensions Total Deferred Inflows of Resources Net Position: Net investment in capital assets Restricted for: Planning and development projects Public safety Public works Capital projects Community services Unrestricted Total Net Position See Notes to Financial Statements Primary Government Governmental Business -Type $ 74,359,586 $ 136 $ 74,359,722 91,824 97,441 189,265 3,006,276 - 3,006,276 31,061,002 - 31,061,002 3,287,159 321 3,287,480 5,908,249 (5,908,249) - 25,673 1,865 27,538 47,585 250,000 297,585 43,537,131 915,164 44,452,295 - 75,485 75,485 8,320,000 - 8,320,000 379,169,393 39,712,955 418,882,348 144,429,865 4,405,156 148,835,021 693,243,743 39,550,274 732,794,017 783,364 - 783,364 783,364 - 783,364 7,451,895 287,048 7,738,943 435,477 2,262 437,739 47,923 - 47,923 810,311 - 810,311 8,434,256 35,500 8,469,756 1,654,939 - 1,654,939 1,287,864 - 1,287,864 4,110,779 - 4,110,779 741,071 - 741,071 6,433,391 - 6,433,391 31,407,906 324,810 31,732,716 2,289,402 - 2,289,402 2,289,402 - 2,289,402 523,495,389 44,118,111 567,613,500 45,321,700 - 45,321,700 301,843 - 301,843 1,129,697 - 1,129,697 5,007,277 - 5,007,277 10,711,704 - 10,711,704 74,362,189 (4,892,647) 69,469,542 $ 660,329,799 $ 39,225,464 $ 699,555,263 CITY OF LA QUINTA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 Expenses Functions/Programs Primary Government: Governmental Activities Program Revenues Operating Capital Charges for Contributions Contributions Services and Grants and Grants General government $ 5,166,732 $ 121,140 $ 293,859 $ - Public safety 21,636,149 1,655,421 7,180,504 14,598 Planning and development 2,212,013 489,589 4,992,919 - Community services 5,992,362 307,869 111,435 - Public works 18,116,732 1,197,069 4,250,390 3,521,846 Interest on long-term debt 340,716 - - - Total Governmental Activities 53,464,704 3,771,088 16,829,107 3,536,444 Business -Type Activities: Golf Course 5,053,360 3,561,857 - 2,872,122 Total Business -Type Activities 5,053,360 3,561,857 - 2,872,122 Total Primary Government $ 58,518,064 $ 7,332,945 $ 16,829,107 $ 6,408,566 General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Other taxes Motor vehicle in lieu - unrestricted Use of money and property Other Transfers Total General Revenues and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at End of Year See Notes to Financial Statements Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Business -Type Activities Activities Total $ (4,751,733) (12,785,626) 3,270,495 (5,573,058) (9,147,427) (340,716) (29,328,065) $ (4,751,733) (12,785,626) 3,270,495 (5,573,058) (9,147,427) (340,716) (29,328,065) - 1,380,619 1,380,619 - 1,380,619 1,380,619 (29,328,065) 1,380,619 (27,947,446) 8,776,491 - 8,776,491 6,637,183 - 6,637,183 8,873,008 - 8,873,008 1,861,453 - 1,861,453 306,087 - 306,087 530,336 - 530,336 3,486,367 - 3,486,367 1,981,343 2,043 1,983,386 296,346 915,164 1,211,510 (247,739) 247,739 - 32,500,875 1,164,946 33,665,821 3,172,810 2,545,565 5,718,375 665,190,960 36,679,899 701,870,859 (8,033,971) - (8,033,971) $ 660,329,799 $ 39,225,464 $ 699,555,263 See Notes to Financial Statements CITY OF LA QUINTA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2015 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 6,871,192 $ 6,791 $ - Capital Accrued liabilities 423,486 656 4,692 Projects Unearned revenues 55,778 Special Revenue Funds Funds 753,102 Deposits payable Housing Housing 27,855 772,433 Due to other governments Authority PA Authority PA Capital - General No.1 No.2 Improvement Assets: Advances from other funds - - - Pooled cash and investments $ 48,243,367 $ 2,238,654 $ 1,269,509 $ 571,984 Receivables: Deferred Inflows of Resources: Accounts 40,523 16,284 33,210 - Taxes 2,890,350 - - 29,804,854 Notes and loans - 2,061,002 29,000,000 Accrued interest 47,688 2,410,562 804,854 Prepaid costs 15,653 - 10,020 - Deposits 33,985 - 13,600 - Due from other governments 34,944,578 6,654,226 - 1,355,502 Due from other funds 819,151 - - - Advances to other funds 14,943,098 26,715,575 - - Land held for resale 8,320,000 - - - Total Assets $ 110,298,393 $ 13,380,728 $ 31,131,193 $ 1,927,486 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 6,871,192 $ 6,791 $ - $ 485,407 Accrued liabilities 423,486 656 4,692 - Unearned revenues 55,778 - - 753,102 Deposits payable 7,477,216 22,982 27,855 772,433 Due to other governments 160 - - - Due to other funds - - Advances from other funds - - - - Total Liabilities 14,827,832 30,429 32,547 2,010,942 Deferred Inflows of Resources: Unavailable revenues 8,661,997 2,408,347 29,804,854 1,133,578 Total Deferred Inflows of Resources 8,661,997 2,408,347 29,804,854 1,133,578 Fund Balances: Nonspendable: Prepaid costs 15,653 - - - Land held for resale 8,320,000 - Advances to other funds 14,943,098 - Deposits 33,985 - Due from other Governments 26,715,575 - - Restricted for: Planning and development projects - 10,941,952 1,293,792 Public safety - - - Community services - - Public works - - Capital Projects - - Committed to: Working capital reserve 3,843,150 - Capital Projects 1,727,390 - Emergency reserve 15,372,600 - Post retirement health benefits 1,523,401 - Carryovers 476,400 - Unassigned 13,837,312 - (1,217,034) Total Fund Balances 86,808,564 10,941,952 1,293,792 (1,217,034) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 110,298,393 $ 13,380,728 $ 31,131,193 $ 1,927,486 See Notes to Financial Statements CITY OF LA QUINTA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2015 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Capital $ 50,994 $ 7,414,384 Accrued liabilities Projects 6,643 435,477 Unearned revenues Funds 1,431 810,311 Deposits payable Other Total Due to other governments Governmental Governmental Due to other funds Civic Center Funds Funds Assets: 7,058,068 2,545,514 9,603,582 Pooled cash and investments $ $ 16,386,093 $ 68,709,607 Receivables: Accounts - 1,807 91,824 Taxes - 115,926 3,006,276 Notes and loans - 31,061,002 Accrued interest 17,954 3,281,058 Prepaid costs - 25,673 Deposits - 47,585 Due from other governments 582,825 43,537,131 Due from other funds - 819,151 Advances to other funds 14,943,098 Land held for resale - 8,320,000 Total Assets $ - $ 17,104,605 $ 173,842,405 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ $ 50,994 $ 7,414,384 Accrued liabilities 6,643 435,477 Unearned revenues 1,431 810,311 Deposits payable 133,770 8,434,256 Due to other governments 1,654,779 1,654,939 Due to other funds 201,400 49,018 250,418 Advances from other funds 7,058,068 2,545,514 9,603,582 Total Liabilities 7,259,468 4,442,149 28,603,367 Deferred Inflows of Resources: Unavailable revenues - - 42,008,776 Total Deferred Inflows of Resources - - 42,008,776 Fund Balances: Nonspendable: Prepaid costs 15,653 Land held for resale 8,320,000 Advances to other funds 14,943,098 Deposits 33,985 Due from other Governments 26,715,575 Restricted for: Planning and development projects 872,755 13,108,499 Public safety 301,843 301,843 Community services 10,711,704 10,711,704 Public works 1,129,697 1,129,697 Capital Projects 3,873,699 3,873,699 Committed to: Working capital reserve - 3,843,150 Capital Projects 1,727,390 Emergency reserve 15,372,600 Post retirement health benefits 1,523,401 Carryovers 476,400 Unassigned (7,259,468) (4,227,242) 1,133,568 Total Fund Balances (7,259,468) 12,662,456 103,230,262 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ - $ 17,104,605 $ 173,842,405 See Notes to Financial Statements THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2015 Fund balances of governmental funds $ 103,230,262 Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 507,979,592 Long-term debt and compensated absences that have not been included in the governmental fund activity: Bonds payable $ (2,405,000) Capital lease payable (54,567) Loans payable (2,036,277) Compensated Absences (853,497) (5,349,341) Proportionate share of net pension liability (6,433,391) Deferred outflows related to pensions: Employer contributions made after the measurement date 783,364 Deferred inflows related to pensions: Adjustment due to difference in proportions (32,725) Net difference between projected and actual plan earnings (2,161,918) Difference between actual and the proportionate share of aggregate employer contributions (94,759) Governmental funds report all OPEB contributions as expenditures, however in the statement of net position any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as a asset or liability. (741,071) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (47,923) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. 42,008,776 Internal service funds are used by management to charge the costs of certain activities, such as equipment replacement and information technology, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. 21,188,933 Net Position of governmental activities $ 660,329,799 See Notes to Financial Statements CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2015 Capital Projects Revenues: Taxes Assessments Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions from other agencies Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Capital leases Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year See Notes to Financial Statements 4,844,519 - - - 21,617,496 - - - 1,373,857 319,139 343,847 - 3,063,065 - - - 3,199,803 - - - 216,300 - - 10,781,778 13,560 Special Revenue Funds Funds - Housing Housing 137,022 - Authority PA Authority PA Capital General No.1 No.2 Improvement $ 25,959,888 $ - $ - $ - 1,356,978 - - - 9,774,046 - 421,797 1,758,039 1,341,438 - - - 604,061 379,348 203,647 270 283,798 - - - - - - 1,956,452 - - - 16,850 210,396 - 1,800 - 39,530,605 379,348 627,244 3,731,611 4,844,519 - - - 21,617,496 - - - 1,373,857 319,139 343,847 - 3,063,065 - - - 3,199,803 - - - 216,300 - - 10,781,778 13,560 - 55,823 - 4,732 - 137,022 - 34,333,332 319,139 536,692 10,781,778 5,197,273 60,209 90,552 (7,050,167) 352,658 - - 8,495,225 (3,388,815) - - (2,571,169) 9,000 - - - (3,027,157) - - 5,924,056 2,170,116 60,209 90,552 (1,126,111) 91,633,753 3,886,438 1,203,240 (90,923) (6,995,305) 6,995,305 - - 84,638,448 10,881,743 1,203,240 (90,923) $ 86,808,564 $ 10,941,952 $ 1,293,792 $ (1,217,034) CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2015 Capital Projects Revenues: Taxes Assessments Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions from other agencies Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Capital leases Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year See Notes to Financial Statements (7,312,490) 11,808,400 101,128,418 (7,312,490) 11,808,400 101,128,418 $ (7,259,468) $ 12,662,456 $ 103,230,262 Other Total Governmental Governmental Civic Center Funds Funds $ - $ 718,583 $ 26,678,471 - 940,221 940,221 - - 1,356,978 - 3,749,061 15,702,943 - - 1,341,438 - 763,631 1,950,957 - - 283,798 - - 1,956,452 290,145 2,496,686 2,803,681 - 84,849 297,045 290,145 8,753,031 53,311,984 201,400 4,506 5,050,425 - 46,976 21,664,472 - 60,682 2,097,525 - 1,735,058 4,798,123 - 2,083,506 5,283,309 - 99,108 11,097,186 - 525,000 594,383 35,723 170,857 348,334 237,123 4,725,693 50,933,757 53,022 4,027,338 2,378,227 - 3,189,448 12,037,331 - (6,362,730) (12,322,714) - - 9,000 - (3,173,282) (276,383) 53,022 854,056 2,101,844 (7,312,490) 11,808,400 101,128,418 (7,312,490) 11,808,400 101,128,418 $ (7,259,468) $ 12,662,456 $ 103,230,262 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2015 Net change in fund balances - total governmental funds $ 2,101,844 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation and disposals exceeded capital outlay in the current period. Capital outlay $ 7,940,232 Depreciation (7,888,258) Disposal of capital assets including contribution to golf course (3,583,086) (3,531,112) The issuance of long-term debt liabilities provides current financial resources in the governmental funds, but issuing debt increases the long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal repayments 525,000 New capital lease (9,000) Capital lease repayments 13,560 Retrospective deposit payable 209,320 Loan repayments 55,823 794,703 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 10,457 Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (27,338) Governmental funds report all contributions in relation to the annual required contribution (ARC) for OPEB as expenditures, however in the statement of activities only the ARC is an expense. (77,694) Pension expense recognizes the change in net pension liability and therefore is not recognized under the current resources measurement and (decreases)/increases from net position 94,542 Revenues reported as unavailable revenue in the governmental funds and recognized as charges for services and operating contributions and grants in the statement of activities. 3,536,835 Internal service funds are used by management to charge the costs of certain activities, such as equipment replacement and information technology, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities. 270,573 Change in net position of governmental activities $ 3,172,810 See Notes to Financial Statements CITY OF LA QUINTA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2015 Assets: Current: Cash and investments Receivables: Accounts Accrued interest Prepaid costs Deposits Due from other governments Inventories Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Accrued liabilities Deposits payable Due to other funds Current portion of capital leases Total Current Liabilities Noncurrent: Advances from other funds Long-term portion of capital leases Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position See Notes to Financial Statements Business -Type Activities - Enterprise Funds Governmental Activities - Internal Golf Course Service Funds $ 136 $ 5,649,979 97,441 - 321 6,101 1,865 - 250,000 915,164 75,485 - 1,340,412 5,656,080 44,118,111 15,619,666 44,118,111 15, 619, 666 $ 45,458,523 $ 21,275,746 $ 287,048 $ 37,511 2,262 - 35,500 568,733 - - 21,099 893,543 58,610 5,339,516 - - 28,203 5,339,516 28,203 6,233,059 86,813 44,118,111 15, 570, 364 (4,892,647) 5,618,569 39,225,464 21,188,933 $ 45,458,523 $ 21,275,746 CITY OF LA QUINTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Operating Revenues: Sales and service charges Miscellaneous Total Operating Revenues Operating Expenses: Administration and general Fuel and oil Maintenance and parts Contract services Software and supplies Depreciation expense Other Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Interest expense Gain on disposal of capital assets Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers and contributions Transfers in Capital contributions Changes in Net Position Net Position: Beginning of Year End of Fiscal Year See Notes to Financial Statements Business -Type Activities - Enterprise Fund, Golf Course $ 3,561,857 915,164 4,477,021 50,629 3,638,047 338,841 1,012,709 5,040,226 (563,205) 2,043 (13,134) Governmental Activities - Internal Service Funds $ 1,750,300 1,750,300 138,322 75,032 136,597 200,864 226,967 773,184 1,550,966 199,334 30,386 (2,839) 6,048 (11,091) 33,595 (574,296) 247,739 2,872,122 2.545.565 36,679,899 $ 39,225,464 232,929 37,644 270.573 20, 918, 360 $ 21,188,933 CITY OF LA QUINTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Cash Flows from Operating Activities: Cash received from customers and users Cash received from/(paid to) interfund service provided Cash paid to suppliers for goods and services Cash paid to employees for services Net Cash Provided (Used for) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers in Advance from other funds Net Cash Provided by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Interest paid on capital debt Capital lease payments Proceeds from sales of capital assets Net Cash Used for Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year See Notes to Financial Statements Business -Type Activities - Enterprise Funds Governmental Activities - Internal Golf Course Service Funds $ 3,513,887 $ - - 1,750,300 (4,583,478) (751,691) (50,598) (151,145) (1,120,189) 847,464 247,739 37,644 568,734 - 816,473 37,644 (230,265) (162,222) (2,839) (20,634) 8,445 (230,265) (177,250) 2,290 29,929 2,290 29,929 (531,691) 737,787 531,827 4,912,192 $ 136 $ 5,649,979 CITY OF LA QUINTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 Reconciliation of Operating Income to Net Cash Provided (Used for) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in inventories (Increase) decrease in due from other governments Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in unearned revenue Increase (decrease) in salaries and benefits payable Total Adjustments Net Cash Provided (Used for) by Operating Activities Non -Cash Investing, Capital, and Financing Activities: Capital asset contributions See Notes to Financial Statements Business -Type Activities - Enterprise Funds Golf Course _ $ (563,205) $ 338,841 (42,108) 6,874 (915,164) 67,278 31 (12,736) Governmental Activities - Internal Service Funds 199,334 773,184 (107,528) (4,703) (12,823) (556,984) 648,130 $ (1,120,189) $ 847,464 $ 2,872,122 $ - CITY OF LA QUINTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Taxes Notes and loans Accrued interest Prepaid asset Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Deferred Outflows of Resources: Deferred charge on refunding Total Deferred Outflows of Resources Liabilities: Accounts payable Accrued interest Deposits payable Long-term liabilities: Due in one year Due in more than one year Total Liabilities Net Position: Held in trust for pension Held in trust for other purposes Total Net Position See Notes to Financial Statements Agency Funds $ 292,738 5,024 160 $ 297,922 297,922 $ 297,922 Pension Trust Private -Purpose Fund Trust Fund Successor Supplemental Agency of the Pension Plan former RDA $ 151,571 $ 22,782,629 - 2,771,187 165 13,654 - 565,382 - 1,654,779 - 31,274,568 151,736 59,062,199 - 3,931,818 - 3,931,818 - 9,361 - 3,716,726 - 6,600,000 - 253,574,113 - 263,900,200 151,736 - - (200,906,183) $ 151,736 $ (200,906,183) CITY OF LA QUINTA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2015 Additions: Taxes Interest and change in fair value of investments Miscellaneous Total Additions Deductions: Administrative expenses Interest expense Contributions to City Loss on reduction of loan Total Deductions Changes in Net Position Net Position - Beginning of the Year Net Position - End of the Year See Notes to Financial Statements Pension Trust Private -Purpose Fund Trust Fund Successor Supplemental Agency of the Pension Plan former RDA $ - $ 14,465,537 886 86,924 - 1,712 886 14, 554,173 12,834 904,539 12,423,586 1,871,423 444,551 12,834 15,644,099 (11,948) (1,089,926) 163,684 (199,816,257) $ 151,736 $ (200,906,183) THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Note 1: Summary of Significant Accounting Policies a. Reporting Entity The City of La Quinta (City) was incorporated May 1, 1982, under the general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council — Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the 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 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. 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 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) 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. Separate financial statements of the Housing Authority are not prepared. b. Government -Wide and Fund Financial Statements The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the financial statements Government -wide Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting 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 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) 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. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government -Wide Financial Statements While separate government -wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business -type activities incorporate data from the government's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Governmental Funds In the fund financial statements, governmental funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a 60 -day availability period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed delivered tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. 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. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources", since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. Proprietary Funds The City's enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, all deferred outflows of resources, all liabilities, and all deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as an Other Financing Source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditures. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) Fiduciary Funds The pension and private -purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities. d. Major Funds, Internal Service Funds and Fiduciary Fund Types The City's major governmental funds are as follows: General Fund — This fund is the primary fund of the City and is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, and Community Services. Housing Authority Project Area No. 1 — This fund accounts for the housing activities of the Housing Authority in Project Area 1 which promotes and provide 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. Housing Authority Prosect Area No. 2 — This fund accounts for the housing activities of the Housing Authority in Project Area 2 which promotes and provide 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. 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. 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: 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. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) Park Equipment and Facilities Fund — This fund is used to account for the purchase and replacement of City owned park facility infrastructure. Costs are reimbursed by the benefiting departments. Fiduciary Funds: Agency Fund — This fund accounts for assets held by the City as an agent for assessment district bondholders. Pension Trust Fund — This fund accounts for the activities of the Supplemental Pension Savings Plan, which accumulates resources for pension benefit payments to qualified government employees. Private -Purpose Trust Fund — This fund accounts for the assets and liabilities of the Former 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. e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or Equity Investments For financial reporting purposes, investments are adjusted to their fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. All investments are valued at fair value. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. Cash and Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary fund's share in the 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. Inventory Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption method of accounting for inventories. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. The City utilizes the consumption method, in which prepaid items are accounted for in the period that the benefit was received. Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Capital Assets include public domain (infrastructure) consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government -wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes capital asset useful lives: Buildings and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years Software 5-10 years Deferred Outflows/Inflows of Resources In addition to assets, the 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 position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has one item which qualifies for reporting in this category; please refer to Note 9 for more details. 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 position 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 two items which qualify for reporting in this category; please refer to Note 9 for more details. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) Compensated Absences Vacation and sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 and 40 days, respectively. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years' service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage increases by 25% for each five-year period until the employee is entitled to 75% of the value of their unused sick leave. This will occur upon the completion of ten years of continuous employment. The General Fund resources are used to pay for the accumulated benefits to employees. Pensions In government -wide financial statements, retirement plans (pensions) are required to be recognized and disclosed using the accrual basis of accounting (see Note 12 and the required supplementary information (RSI) section immediately following the Notes to Financial Statements), regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting. In general, the City recognizes a net pension liability, which represents the City's proportionate share of the excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial report provided by the California Public Employees' Retirement System (CaIPERS). The net pension liability is measured as of the City's prior fiscal year-end. Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred. For purposes of measuring the net pension liability and deferred outflows/inflows or resources relating to pensions and pension expense, information about the fiduciary net position of the City's pension plan with CalPERS and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefits terms. Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. Each subsequent year will incorporate an additional closed basis five-year period of recognition. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) 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. Fund Balance In the fund financial statements, governmental funds report the following fund balance classification: Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City's highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution. Assigned includes amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose. The City Council authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted through a resolution. Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. Fund Balance Flow Assumptions — governmental fund financial statements Sometimes the City of La Quinta will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and 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. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Summary of Significant Accounting Policies (Continued) 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 — governmental and proprietary fund financial statements Sometimes the City of La Quinta will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. 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 and liabilities 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. g. Adopted Accounting Standards The City implemented GASB Statement 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No. 27. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the government -wide statement of activities. The City implemented GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. The City has fully conformed to the requirements of this statement as of June 30, 2015. II. DETAILED NOTES ON ALL FUNDS Note 2: Cash and Investments Cash and investments as of June 30, 2015, are classified in the accompanying financial statements as follows: Statement of Net Position: Cash and investments Statement of Fiduciary Net Position: Cash and investments Cash with fiscal agent $ 74,359,722 23,226,938 31,274,568 Total cash and investments $ 128,861,228 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) Cash and investments as of June 30, 2015, consist of the following: Cash on hand $ 1,900 Deposits with financial institutions 4,814,114 Investments 124,045,214 Total cash and investments $ 128,861,228 The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Cash Deposits At June 30, 2015, the carrying amount of the City's deposits was $4,814,114, and the bank balance was $5,165,685. The $351,571 difference represents outstanding checks and other reconciling items. Investments Authorized by the California Government Code and the Citv's Investment 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. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Investment Types *Maximum Authorized by State Law Maturity *Maximum *Maximum Percentage of Investment In Portfolio One Issuer U.S. Treasury Obligations 3 years None $30 million U.S. Agency Securities 5 years None 20 - 30 million Local Agency Bonds 10 years None 30 million California Local Agency Obligations 10 years 30% 30 million Commercial Paper 90 days 15% 5 million Certificates of Deposit 3 years 60% 250,000 Negotiable Certificates of Deposits 5 years 30% 250,000 Corporate Notes 3 years 10% 5 million Money Market Mutual Funds On Demand 20% N/A Local Agency Investment Fund (LAIF) N/A 30% 50 million Investment Agreements N/A N/A N/A 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. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type Certificates of Deposit Federal agency securities: Federal National Mortgage Association Federal Home Loan Mortgage Corp U.S Treasury Note State investment pool Held by bond trustee: Money market funds Remaining Maturity (in years) 1 year Total or Less 1 to 3 Years 3 to 5 Years $ 10,933,151 $ 240,845 $ 6,315,992 $ 4,376,314 18,034,920 - 18,034,920 - 9,988,000 - - 9,988,000 4,890,650 - - 4,890,650 48,923,919 48,923,919 - - 31,274,574 31,274,574 Total $ 124,045,214 $ 80,439,338 $ 24,350,912 $ 19,254,964 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) Disclosures Relatina to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy limits investments in commercial paper to those rated A-1 and P-1 or higher from Standard and Poor's (S&P) and money market mutual funds that are rated "AAA". The quality of U.S. Treasury securities is not analyzed since they are not deemed to have credit risk. As of June 30, 2015, the City had investments with a variety of issuers, all of which were "investment grade" and were legal under state and municipal law. The City's investments in money market mutual funds were all rated "AAA", and federal agency securities were all rated AA+ by S&P and Moody's. As of June 30, 2015, the City's investments in external investment pools were unrated. Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code, except for U.S. Agency Securities and Commercial Paper. As of June 30, 2015, the City had individual investments that represent 5% or more of total investments in the following securities: Federal Home Loan Mortgage Corporation $ 9,988,000 8.06% Federal National Mortgage Association 18,034,920 14.54% Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. 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. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards (e.g. mark to market) for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the statement of net position and balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. Note 3: Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1 % of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within ninety days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 Note 4: Notes Receivable In September 1994, the Former Agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6% per annum and is due in full on June 15, 2029. On February 1, 2012, this receivable was transferred to the Housing Authority Project Area No. 1 which took over the housing function of the Former Agency upon dissolution. The balance at June 30, 2015, including matured, unpaid interest of $2,408,347 is $4,443,735. In February 2011, the Former Agency entered into Disposition and Development Agreement with Coral Mountain Partners L.P. ("Coral Mountain") to fund up to $29,000,000 for the construction of a low and moderate income apartment complex with an estimated completion date of the apartment complex of March 2014. The Former Agency's $29,000,000 loan is evidenced by a Promissory Note executed by Coral Mountain ("Note"). Interest on the outstanding note amount will bear simple interest of 1 %. Principal and interest will be repaid on or before May 11t of each year from annual residual receipts as defined in the Note once the project is completed and may be repaid early if the property is refinanced, or if the property is transferred to another entity. On February 1, 2012, this receivable was transferred to the Housing Authority Project Area No. 2 which took over the housing function of the Former Agency upon dissolution. As of June 30, 2015, the outstanding principal portion on the Note is $29,000,000 and the outstanding interest portion is $804,854. Other notes receivable as of February 1, 2012, were transferred to the Housing Authority Project Area No. 1 which took over the housing function of the Former Agency upon dissolution that totaled $25,614 at June 30, 2015. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: California Joint Powers Insurance Authority Refund Balances Long-term Receivable Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the California Joint Powers Authority (CJPIA). The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. The City at June 30, 2015, had a retrospective refund of $29,155. Note 6: Capital Assets Capital asset activity for governmental activities for the year ended June 30, 2015, is as follows: Beginning Ending Balance at Balance at July 1, 2014 Additions Deletions Transfers June 30, 2015 Governmental Activities: Capital assets, not being depreciated Land $ 69,609,372 $ 207,302 $ - $ - $ 69,816,674 Right of way 284,928,794 - - - 284,928,794 Art purchases - 44,687 (44,687) - Construction -in -progress 22,367,034 7,679,245 711,033 (4,911,321) 24,423,925 Total Capital Assets, Not Being Depreciated Capital assets, being depreciated: Buildings and improvements Equipment and furniture Vehicles Infrastructure Total Capital Assets, Being Depreciated Less accumulated depreciation: Buildings and improvements Equipment and furniture Vehicles Infrastructure Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Governmental Activities Capital Assets, Net 376,905,200 7,931,234 711,033 (4,956,008) 379,169,393 7,427 2,083,886 276,217,116 69,063,708 - - 210,263 69,273,971 2,915,151 73,576 6,204 - 2,982,523 1,599,761 97,712 1,223 - 1,696,250 200,390,749 - - 1,873,623 202,264,372 273,969,369 171,288 7,427 2,083,886 276,217,116 23,545,316 2,323,894 - - 25,869,210 1,852,366 204,297 3,808 - 2,052,855 1,445,305 60,778 1,223 - 1,504,860 96,287,853 6,072,473 - - 102,360,326 123,130,840 8,661,442 5,031 - 131,787,251 150,838,529 (8,490,154) 2,396 2,083,886 144,429,865 $ 527,743,729 $ (558,920) $ 713,429 $ (2,872,122) $ 523,599,258 The $2,872,122 amount remaining in transfers represents the capital contribution of construction in progress to the golf course for the SilverRock project. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 6: Capital Assets (continued) Depreciation expense was charged to the following functions in the Statement of Activities: General government $ 373,991 Community development 115,832 Community services 1,189,966 Public works 6,208,469 Internal service 773,184 Q 4 aal AA) Capital asset activity for business -type activities for the year ended June 30, 2015, is as follows: Beginning Ending Balance at Balance at July 1, 2014 Additions Deletions June 30, 2015 Business -Type Activities: Capital assets, not being depreciated: Land $ 36,840,832 $ 2,872,123 $ - $ 39,712,955 Total Capital Assets, Not Being Depreciated 36,840,832 2,872,123 - 39,712,955 Capital assets, being depreciated: Buildings and improvements 6,636,465 - - 6,636,465 Equipment and furniture 2,073,478 230,264 - 2,303,742 Vehicles 20,348 - - 20,348 Software 20,255 - - 20,255 Total Capital Assets, Being Depreciated 8,750,546 230,264 - 8,980,810 Less accumulated depreciation: Buildings and improvements 2,210,865 224,846 - 2,435,711 Equipment and furniture 1,985,345 113,995 - 2,099,340 Vehicles 20,348 - - 20,348 Software 20,255 - - 20,255 Total Accumulated Depreciation 4,236,813 338,841 - 4,575,654 Total Capital Assets, Being Depreciated, Net 4,513,733 (108,577) - 4,405,156 Governmental Activities Capital Assets, Net $ 41,354,565 $ 2,763,546 $ - $ 44,118,111 Depreciation expense was charged to the following function in the Statement of Activities: Golf Course $ 338,841 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Changes in Long -Term Liabilities - Governmental Activities a. Changes in Long -Term Debt The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended June 30, 2015: b. A description of individual issues of debt (excluding defeased bonds) outstanding as of June 30, 2015, is as follows: Copier Leases Payable In June 2013, the City entered into a 5 -year lease agreement for photocopiers for $71,045 maturing in monthly increments of $1,456, with interest payable monthly at 8.47%. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments at the inception date. On April 1, 2015, the City leased an additional copier for $9,000; this amount was added to the outstanding principal at April 1, 2015 of $49,505 to arrive at a new balance of $58,505 maturing in monthly increments of $1,728, with interest payable monthly at 8.47%. The minimum future lease obligations and the net present value of the lease payments as of June 30, 2015, are as follows: Year Ending June 30, 2016 2017 2018 Total Payments Less amount representing interest Outstanding Principal "r_+..I $ 20,739 20,739 20,739 62,217 (7,650) $ 54,567 Balance at Balance at June Due within July 1, 2014 Additions Deletions 30, 2015 one year City: Compensated absences payable $ 838,982 $ 650,572 $ 636,057 $ 853,497 $ 634,149 Copier Lease Payable 59,127 9,000 13,560 54,567 16,633 Dell Computer Lease 69,936 - 20,634 49,302 21,099 General liability retrospective deposit payable 209,320 - 209,320 - - RDA Project Area No. 2: Provident Loan 1,405,755 - 38,411 1,367,344 41,748 US Department of Agriculture 686,345 - 17,412 668,933 19,235 Financing Authority: Revenue bonds 2,930,000 - 525,000 2,405,000 555,000 Total $ 6,199, 465 $ 659,572 $ 1,460,394 $ 5,398,643 $ 1,287,864 b. A description of individual issues of debt (excluding defeased bonds) outstanding as of June 30, 2015, is as follows: Copier Leases Payable In June 2013, the City entered into a 5 -year lease agreement for photocopiers for $71,045 maturing in monthly increments of $1,456, with interest payable monthly at 8.47%. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments at the inception date. On April 1, 2015, the City leased an additional copier for $9,000; this amount was added to the outstanding principal at April 1, 2015 of $49,505 to arrive at a new balance of $58,505 maturing in monthly increments of $1,728, with interest payable monthly at 8.47%. The minimum future lease obligations and the net present value of the lease payments as of June 30, 2015, are as follows: Year Ending June 30, 2016 2017 2018 Total Payments Less amount representing interest Outstanding Principal "r_+..I $ 20,739 20,739 20,739 62,217 (7,650) $ 54,567 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) Dell Computer Lease Payable In April 2014, the City entered into a 5 -year lease agreement for Dell computers for $90,629 maturing in annual increments ranging from $20,693 to $408, with interest payable annually at 4.79%. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments at the inception date. The minimum future lease obligations and the net present value of the lease payments as of June 30, 2015, are as follows: Year Ending June 30, Total 2016 $ 23,474 2017 23,474 2018 5,977 2019 427 Total Payments 53,352 Less amount representing interest (4,050) Outstanding Principal $ 49,302 1996 Lease Revenue Refundina Bonds On November 15, 1996, the Financing Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for construction of remaining improvements to the La Quinta Civic Center site. The bonds consist of $3,630,000 of serial bonds and $5,150,000 of term bonds. The serial bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts mature between October 1, 1997 and October 1, 2008, in amounts ranging from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and mature on October 1, 2018. A surety agreement has been purchased to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The amount of principal outstanding at June 30, 2015, is $ 2,405,000. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) The minimum annual requirements to amortize the bond payable as of June 30, 2015, are as follows: Loans Washington Street Apartments In October 2008, the Former Agency acquired the Washington Street Apartments for cash and the assumption of the following debt: Provident Bank Loan This loan was originally entered into with the previous owner of the Washington Street Apartments and Provident Bank for $1,696,000 in August 2001 at an 8.36% interest rate. The loan is amortized on a thirty-year basis with the outstanding balance due in twenty years or August 2021. The outstanding principal balance in October 2008 when the property was acquired by the Former Agency was $1,572,031. The loan is secured by a deed of trust on the property and is senior to the United States Department of Agriculture (USDA) loan which is also secured by a deed of trust on the property. Repayment of the monthly loan amount of $12,873 is made from tenant rent receipts. The source for the final principal payment due in August 2021, of $1,050,109 will be determined at a future date. The principal balance of this loan at June 30, 2015, is $1,367,344. The minimum annual requirements to amortize the loan payable as of June 30, 2015, are as follows: Principal Interest 2016 $ 555,000 $ 118,076 2017 585,000 86,441 2018 615,000 53,141 2019 650,000 18,038 Totals $ 2,405,000 $ 275,696 Loans Washington Street Apartments In October 2008, the Former Agency acquired the Washington Street Apartments for cash and the assumption of the following debt: Provident Bank Loan This loan was originally entered into with the previous owner of the Washington Street Apartments and Provident Bank for $1,696,000 in August 2001 at an 8.36% interest rate. The loan is amortized on a thirty-year basis with the outstanding balance due in twenty years or August 2021. The outstanding principal balance in October 2008 when the property was acquired by the Former Agency was $1,572,031. The loan is secured by a deed of trust on the property and is senior to the United States Department of Agriculture (USDA) loan which is also secured by a deed of trust on the property. Repayment of the monthly loan amount of $12,873 is made from tenant rent receipts. The source for the final principal payment due in August 2021, of $1,050,109 will be determined at a future date. The principal balance of this loan at June 30, 2015, is $1,367,344. The minimum annual requirements to amortize the loan payable as of June 30, 2015, are as follows: Totals $ 1,367,344 $ 629,894 Principal Interest 2016 $ 41,748 $ 112,726 2017 45,375 109,099 2018 49,317 105,157 2019 53,602 100,872 2020 58,259 96,216 2021-2022 1,119,043 105,824 Totals $ 1,367,344 $ 629,894 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued) United States Department of Agriculture (USDA) Rural Development Promissory Note This promissory note was originally entered into with the previous owner of the Washington Street Apartments and USDA — Rural Development for $1,500,000 in November 1980 at a 10.00% interest rate. The note is amortized on a fifty-year basis with the outstanding balance due in October 2030. The outstanding principal balance, in October 2008, when the property was acquired by the Former Agency was $760,721. The loan is secured by a deed of trust on the property and is subordinated to the Provident loan which is also secured by a deed of trust on the property. Repayment of the monthly loan amount of $7,107 is made from tenant rent receipts and a rental subsidy from the USDA. Rural Development has agreed to a 9% interest rate subsidy on the Promissory Note as long as the Apartment renters meet certain program eligibility requirements. The principal balance of this note at June 30, 2015, is $668,933. Compensated absences Compensated absences are described in Note 1. The liability is typically liquidated by the general fund. Principal Interest 2016 $ 19,235 $ 66,047 2017 21,249 64,033 2018 23,474 61,807 2019 25,932 59,349 2020 28,648 56,634 2021-2025 195,033 231,376 2026-2030 320,890 105,519 2031 34,472 871 Totals $ 668,933 $ 645,636 Compensated absences Compensated absences are described in Note 1. The liability is typically liquidated by the general fund. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8 Debt Without Governmental Commitment The City of La Quinta sold Improvement Bonds issued pursuant to the California State Improvement Act of 1915. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benefited by the projects. The bonds are neither general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof, therefore, they are not included in the long-term liabilities in the accompanying financial statements. The City is not liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and forwarding the collections to bondholders. The following is a summary of Improvement Bonds outstanding at June 30, 2015. Outstanding at Proceeds Maturity Date Interest Rate June 30, 2015 Assessment District No. 97-1 $ 705,262 9/2/2018 4.10% - 5.60% $ 170,000 Note 9: Deferred Outflows and Inflows of Resources Pursuant to GASB Statement No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position," and GASB Statement No. 65, "Items Previously Reported as Assets and Liabilities," the City recognized deferred outflows of resources in the government -wide financial statements. These items are a consumption of net position by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. The City has one item that is reportable on the Government -wide Statement of Net Position. It relates to outflows from changes in the net pension liability (Note 12). Deferred outflows of resources that are reported in the proprietary funds are included in the Government -wide Statement of Net Position. Governmental activities recorded deferred outflows of resources related to pensions of $783,364. In addition, the City recognized deferred inflows of resources in the government -wide financial statements and governmental fund financial statements. These items are an acquisition of net position by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. The City has one item that is reportable on the Government -wide Statement of Net Position; inflows from changes in the net pension liability (Note 12). Deferred inflows of resources reported in the Government -wide Statement of Net Position related to pensions of $2,289,402. Under the modified accrual basis of accounting, it is not enough that revenue is earned; it must also be available to finance expenditures of the current period. Governmental funds will therefore include additional deferred inflows of resources for amounts that have been earned but are not available to finance expenditures in the current period. The City has two items that are reportable on the Governmental Fund Balance Sheet: the first of these items relates to long-term Housing notes receivable and accrued interest recorded in the Housing special revenue funds for a total amount of $32,213,201 (Note 4). The second relates to revenues not yet available from fire credit and grants in the amount of $9,795,575. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 10: Interfund Receivables and Payables The composition of current interfund receivable and payable as of June 30, 2015, are as follows: Due to Other Funds Civic Center Golf Course Non -Major Fund Fund Governmental Total Due From Other Funds General Fund $ 201,400 $ 568,733 $ 49,018 $ 819,151 The interfund balances were made to cover negative cash balances and other temporary loans at June 30, 2015. The composition of non-current interfund receivable and payable as of June 30, 2015, are as follows: Advances From Other Funds Non -Major Civic Center Governmental Golf Course TOTAL Advances to Other Funds General Fund $ 7,058,068 $ 2,545,514 $ 5,339,516 $ 14,943,098 a. In September 2006, an advance up to $9,615,094 for the City Hall expansion from the General Fund to the Civic Center Developer Impact Fee Fund was approved. As of June 30, 2015, the Civic Center expansion was completed and the amount of the advance was $7,058,068 outstanding. The advance accrues interest that would have been earned by Local Agency Investment Fund. b. As of June 30, 2015, the General Fund has advanced to the Golf Course fund $5,339,516. The advances accrue interest at the City's investment pool rate and are to be repaid by the golf course out of future profits. c) In October 2009, an advance up to $2,033,687 for the Phase 1 of the Corporate Yard from the General Fund to the Street and Park Maintenance Facility Funds was approved. As of June 30, 2015, the amount of the outstanding advance was $1,907,295. The advance accrues interest at the earnings rate of the City's investment pool fund. d) In February 2003, the Redevelopment Agency Capital Projects PA No. 2 Fund advanced $1,350,131 to the Fire Facility Fund to provide funding for development of the City's north Fire Station. On March 1, 2012 the outstanding advance of $925,192 was transferred from the Redevelopment Agency to the General Fund with the Redevelopment Agency receiving $925,192 in cash for the outstanding balance. The advance accrues interest at the earnings rate of the City's investment pool funds. As of June 30, 2015, the remaining balance of the advance was $638,219. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 11: Interfund Transfers Transfers Out Capital Non -Major Improvement General Fund Governmental Fund Total Transfers In General Fund $ - $ 188,777 $ 163,881 $ 352,658 Capital Improvement Fund 2,333,174 6,162,051 8,495,225 Non -Major Governmental 770,258 11,902 2,407,288 3,189,448 Golf Course Fund 247,739 - - 247,739 Internal Service Funds 37,644 - - 37,644 Total: $ 3,388,815 $ 6,362,730 $ 2,571,169 $ 12,322,714 a) $188,777 was transferred to the General Fund from various non -major funds to fund various program expenses within the City related to operations and grant funded activities. b) $2,333,174 was transferred from the General Fund to the Capital Improvement Fund to transfer various capital projects and sales tax rebate agreements. c) $2,407,288 was transferred to Capital Improvement Fund from various non -major funds when after the fact external grant funding was received to be used for various projects. d) $770,258 was transferred to various non -major funds from the General Fund to support various administrative operations and expenses within the City. e) $247,739 was transferred from the General Fund to the Golf Course Fund to subsidize operations per the FY14-15 budget. f) $37,644 was grant money transferred to the internal service fund from the general fund for the purchase of a COPS vehicle. g) $6,162,051 was transferred from various non major funds to the Capital Project Fund to fund various capital projects. h) $163,881 was transferred to the general fund from the capital project fund when after the fact external grant funding was received to be used for various projects. i) $11,902 was transferred between non major funds to repay the DIF loan liability. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 III. OTHER INFORMATION Note 12: Defined Benefit Pension Plan Miscellaneous Plan Plan Descriptions The City of La Quinta Miscellaneous Plans, are cost-sharing multiple -employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). All qualified and permanent employees are eligible to participate in the City's separate Miscellaneous (Tier I, Tier II, and PEPRA) Plans. Benefit provisions under these plans are established by State statue and City resolution. Benefits Provided The Plans 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 1957 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 Public Employees' Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new risk pools created by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk -pool valuations. All Plans Tier I Tier II PEPRA On and after January 1, 2013 2% @ 62 5 years service monthly for life 52 and up 1 % to 2.5% 6.308% 6.250% On and after December 16, On and after Hire date 1983 December 17, 2012 Benefit formula 2.5% @ 55 2% @ 60 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 50 and up 50 and up Monthly benefits, as a % of eligible compensation 2% to 2.5% 1.092% to 2.418% Required employee contribution rates 7.942% 6.880% Required employer contribution rates 14.660% 8.049% PEPRA On and after January 1, 2013 2% @ 62 5 years service monthly for life 52 and up 1 % to 2.5% 6.308% 6.250% CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Defined Benefit Pension Plan (continued) Contribution Description 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. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plans' allocated share of the risk pool's 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. The required employer contribution and the amount paid to CalPERS by the City for the year ended June 30, 2015 was $756,355. The City's employer contributions were equal to the required employer contributions for the year ended June 30, 2015. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2015, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows: Proportionate Share of Net Pension Liability Tier 1 $ 6,433,125 Tier 11 96 PEPRA 170 Total Net Pension Liability: $ 6,433,391 The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability of the CalPERS Miscellaneous Pool. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. City's proportion of the net pension liability was based on CalPERS' Public Agency Cost - Sharing Allocation Methodology Report. The City's proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014 was as follows: Proportion - June 30, 2013 Proportion - June 30, 2014 Change - Increase (Decrease) Tier I Tier II PEPRA Total Plans 8,789,962 $ 131 $ 6,433,125 96 (2,356,837) (35) 233 $ 8,790,326 170 6,433,391 (63) (2,356,935) For the year ended June 30, 2015, the City recognized a total pension expense of $688,822 for all plans in total. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Defined Benefit Pension Plan (continued) At June 30, 2015, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Pension contributions made subsequent to measurement date Difference between employer contribution and the plans proportionate share of employer contributions Net difference between projected and actual earnings on pension plan investments Adjustment due to difference in proportions Total Deferred Outflows Deferred Inflows of Resources of Resources $ 783,364 94,759 2,161,918 32,725 $ 783,364 $ 2,289,402 The $783,364 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Deferred Period ended Outflows/(Inflows) of June 30: Resources 2015 $ (577,103) 2016 (577,103) 2017 (574,766) 2018 (560,430) CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Defined Benefit Pension Plan (continued) Actuarial Methods and Assumations Used to Determine Total Pension Liabil For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table Post Retirement Benefit Increase Entry Age Normal Cost Method 7.50% 2.75% 3.3% - 14.2% (1) 7.50%(2) Derived using CalPERS' Membership Data for all Funds (3) Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) Depending on age, service and type of employement (2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation (3) The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report on the CalPERS website. All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS' website. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement Fund. According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS determined this difference was deemed immaterial to the Public Agency Cost -Sharing Multiple -Employer Defined Benefit Pension Plan. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Defined Benefit Pension Plan (continued) CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CaIPERS will continue to check the materiality of the difference in calculation until such time as they have changed their methodology. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. New Strategic Asset Class Allocation Global Equity 47.0% Global Fixed Income 19.0 Inflation Sensitive 6.0 Private Equity 12.0 Real Estate 11.0 Real Return Years Real Return 1-10(i) Years 11+ (2) 5.25% 5.71% Infrastructure and Forestland 3.0 Liquidity 2.0 (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 0.99 2.43 0.45 3.36 6.83 6.95 4.50 5.13 4.50 5.09 (0.55) (1.05) CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 12: Defined Benefit Pension Plan (continued) 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 pension 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 % point lower or 1 % point higher than the current rate: Miscellaneous plans Net Discount Rate - 1% Current Discount Discount Rate +1% Pension Liability/(Asset) 6.50% 7.50% 8.50% Tier 1 $ 11,461,839 $ 6,433,125 $ 2,259,769 Tier II 170 96 34 PEPRA 303 170 60 TOTAL: $ 11,462,312 $ 6,433,391 $ 2,259,863 Pension Plan FiduciarV Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Payable to the Pension Plan Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Note 13: Defined Contribution Plans Plan Description The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide retirement excess benefits to general employees of the City. At June 30, 2015, there was one plan member. There are no required contributions by plan members. During the 2014-2015 fiscal year the City made no contributions to fund the Supplemental Pension Savings Plan. Note 14: Post -Employment Health Benefits Plan Description The City of La Quinta provides other postemployment benefits (OPEB) through a single -employer defined benefit healthcare plan by contributing on behalf of all eligible retirees' $119/month for calendar 2014 and $122/month for calendar 2015, 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 NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Post -Employment Health Benefits (continued) Funding PolicV The contribution requirements of plan members and the City are established and may be amended by the City, City Council and/or the employee association. Currently, contributions are not required from plan members. A contribution was made during 2014-2015 fiscal year for $16,412. As a result, the City calculated and recorded a net OPEB obligation, representing the difference between the annual required contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC) $ 106,104 Interest on net OPEB obligation 26,917 Adjustment to ARC (38,915) Annual OPEB cost 94,106 Contributions made 16,412 (Decrease) increase in net OPEB obligation 77,694 Net OPEB obligation (asset) - beginning of year 663,377 Net OPEB obligation (asset) - end of year $ 741,071 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2014-2015 and the two preceding years were as follows: Fiscal Annual Year OPEB End Cost 6/30/2013 $ 116,408 6/30/2014 120,039 6/30/2015 94,106 Funded Status and Funding Progress Actual Percentage Actuarial Contribution of Annual Net OPEB (Net of OPEB Cost Obligation Adjustments) Contributed (Asset) $ 16,461 14.14% $ 559,591 16,253 13.54% 663,377 16,412 17.44% 741,071 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation information available. Actuarial Actuarial Actuarial Percent of Type of Valuation Value of Accrued Covered Valuation Date Assets Liability Funding Ratio Covered Payroll Payroll Interest Rate Actual 7/1/2011 $ - $ 428,328 0.0% $ 7,459,445 5.7% 5.0% Actual 7/1/2014 - 851,125 0.0% 5,372,588 15.8% 4.0% CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 14: Post -Employment Health Benefits (Continued) Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The required contribution was determined as part of the July 1, 2014, actuarial valuation using the projected unit credit method. The actuarial assumptions included a 4.0% investment rate of return and healthcare trend rate ranging from 5% to 8% The actuarial value of assets is set equal to the reported market value of assets. The UAAL is being amortized as a level dollar on an open basis. The remaining amortization period at June 30, 2015, was twenty-four years. The number of active participants is 12. Note 15: Risk Management Description of Self -Insurance Pool Pursuant to Joint Powers Aareement The City of La Quinta is a member of the California Joint Powers Insurance Authority (CJPIA). The CJPIA is composed of 118 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The CJPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine -member Executive Committee. Self -Insurance Programs of the CJPIA Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Retrospective adjustments are scheduled to continue indefinitely on coverage years 2012-13 and prior, until all claims incurred during those coverage years are closed, on a pool -wide basis. This subsequent cost re -allocation among members, based on actual claim development, can result in adjustments of either refunds or additional deposits required. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is estimated using actuarial models and pre -funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk -sharing pool. Additional information regarding the cost allocation methodology is provided below. Liability In the 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 $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 15: Risk Management (Continued) (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. For 2014-15, the CJPIA's pooled retention is $2 million per occurrence, with reinsurance to $20 million, and excess insurance to $50 million. The CJPIA's reinsurance contracts are subject to the following additional pooled retentions: (a) 50% of the $2.5 million annual aggregate deductible in the $3 million x/s $2 million layer, (b) 50% quota share of the $3 million x/s $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million x/s $10 million layer. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence losses have a sub -limit of $30 million per occurrence. Workers' Compensation In the workers' compensation program 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 $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2014-15, the CJPIA's pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to $10 million are pooled among members. Purchased Insurance Property Insurance - The City of La Quinta participates in the all-risk property protection program of the CJPIA. This insurance protection is underwritten by several insurance companies. City of La Quinta property is currently insured according to a schedule of covered property submitted by the City of La Quinta to the CJPIA. City of La Quinta property currently has all-risk property insurance protection in the amount of $62,668,100. There is a $5,000 deductible per occurrence except for non -emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Earthquake and Flood Insurance - The City of La Quinta purchases earthquake insurance brokered through a third party. The City of La Quinta property currently has earthquake protection up to $10,000,000 per occurrence. There is a deductible of $25,000 per occurrence. Premiums for the coverage are paid annually in the amount of $93,000 and are not subject to retrospective adjustments. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 15: Risk Management (Continued) Theft Insurance - The City purchases theft insurance coverage brokered through a third party. The City pays an annual premium of $3,366, which covers thefts up to $1,000,000, with a deductible of $5,000 per occurrence. Pollution Legal Liability Insurance - The City participates in the pollution legal liability insurance program which is available through the CJPIA. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims -made basis. There is a $50,000 deductible. The CJPIA has a limit of $10 million for the 3 -year period from July 1, 2014 through July 1, 2017. 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. Earthquake and Flood insurance was reduced from $20 million to $10 million for the policy period February 7, 2015 to February 7, 2016. Note 16: Fund Balance a. Fund Balance Commitments The City has the following committed fund balance shown on the balance sheet: Committed to emergency reserve — in June of 2015 the City established the amount of 40% of the FY Year 2015-2016 budgeted operating expenditures. The City chose to base the FY 2014-2015 year-end reserves on the adopted FY 2015-2016 budget. This amount totals $15,372,600. The funds would be drawn upon pursuant to the Municipal Code Section 2.20 which defines an emergency or disaster to mean the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this city caused by such conditions as air pollution, fire, flood, storm, epidemic, riot, earthquake or other conditions, including conditions resulting from war or imminent threat of war but other than conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, regular personnel, equipment and facilities of the city and which may require the combined forces of other political jurisdictions to combat. Committed to post retirement health benefits - the City has committed a portion of fund balance for the payment in future years of their Post retirement health benefits. For the year ended June 30, 2015, the City has committed $1,523,401 for this purpose. Committed to working capital reserve: in June of 2015 the City established the amount of 10% of the FY Year 2015-2016 budgeted expenditures. The City chose to base the FY 2014-2015 year-end reserves on the adopted FY 2015-2016 budget. This amount totals $3,843,150. Committed to Fiscal Year 2015 carryovers to Fiscal Year 2016 $476,400. Committed to Fiscal Year 2015 capital project carryovers to Fiscal Year 2016 $1,727,390. These committed amounts have been approved by Council based on certain percentages and will be used only in the event of Council approval. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 16: Fund Balance (continued) b. Fund Balance Restatements Upon receiving the Finding of Completion for the Successor Agency and the approval of the Agency's OB Resolution No. 2014-001 for loans made to the former Redevelopment Agency by the City of La Quinta, the receivable balance for the loans was recorded to the General Fund. The City later elected to transfer $6,995,305 of receivable balances from the General Fund to the Housing PA No. 1 Fund in accordance with HSC 34191.4 which states that 20% of the sponsoring entity loan repayments must be transferred to the Low/Mod fund. The General Fund and the Housing PA No. 1 Fund restated their fund balances to correctly reflect the allocation of the future loan repayments between the General Fund and the Housing PA No.1 Fund. c. At June 30, 2015, the following funds had deficit fund balances: Major Capital Projects Funds Capital Improvement $ 1,217,034 Civic Center 7,259,468 Nonmajor Special Revenue Funds: Federal Assistance 12,914 Lighting and Landscaping 14,035 Nonmajor Capital Projects Funds: Library Development 1,654,779 Street Facility 1,907,295 Fire Facility 638,219 Note 17: Golf Course Management Agreement The City entered into an agreement with Landmark Golf Management LLC (operator) to manage the golf operations at the city -owned SilverRock Golf Course. The Agreement entered into on April 6, 2004, sets forth a five-year term commencing upon the completion of the golf course. On January 14, 2005, the golf course was deemed to be complete and management was turned over to the operator. The contract has been amended and extended numerous times with the current contract expiring July 1, 2018. The contract provides that the operator will manage the day to day operations, hire employees, provide golf pro shop and food services, manage all marketing and promotional activities, prepare the annual budget report for Council consideration, and manage accounting and payroll functions. In addition to the annual payment for management services, the City has advanced the operator $250,000 to pay for golf course expenses. Twice a month the operator submits a request for reimbursement to the City to replenish the City's advance. In addition, the agreement sets forth the establishment of a capital reserve fund of 2% of green fees. For the fiscal year ending June 30, 2015, the Golf Course had an operating loss before contributions and transfers of $574,296. Note 18: Reimbursement Agreements The City entered into a sales tax sharing agreement on January 30, 2006, with Costco Wholesale Corporation. Under the terms of the agreement the City shall make quarterly payments of 40% of any sales tax generated from Costco in an amount not to exceed $4,000,000 over a ten-year period. Due to the reporting of sales tax information by the State Board of Equalization to the City, the reimbursement payments by the City will lag by one quarter. The agreement terminates when either the $4,000,000 limit is reached or in 10 years whichever comes first. The Costco business opened in November 2006. As of June 30, 2015, the City made $2,914,202 in reimbursement payments to the owner leaving an outstanding balance of $1,085,798. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 18: Reimbursement Agreements (continued) On September 9, 2014, the City entered into a sales tax sharing agreement with One Eleven La Quinta LLC ("Hobby Lobby"). Under the terms of the agreement the City shall make quarterly payments of 50% of any sales tax generated from Hobby Lobby in an amount not to exceed $400,000 over an eight year period. Due to the reporting of sales tax information by the State Board of Equalization to the City, the reimbursement payments by the City will lag by one quarter. The agreement terminates when either the $400,000 limit is reached or in eight years whichever comes first. The Hobby Lobby business opened in December 2014. For the year ended June 30, 2015, the City made $8,748 in reimbursement payments to the owner leaving an outstanding balance of $391,251. Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 3, 2011, 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). a. Cash and Investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and investments pooled with the City $ 22,782,629 Cash and investments with fiscal agent 31,274,568 $ 54,057,197 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) b. Loans Receivable Owner Participation Agreement — Garff Properties, LLC In July 2010, the Former Agency entered into an Owner Participation Agreement (OPA) with an Garff Properties -La Quinta, LLC ("Garff') that provides for the Former Agency to provide a rehabilitation loan to Garff of up to $2,300,000 for the construction of a new auto dealership facility and rehabilitation of an existing dealership facility. In connection with the OPA, Garff has executed a promissory note which is secured by a deed of trust, and an operating covenant. The loan will be repaid by crediting future sales and property tax increment taxes generated on the site until the cumulative taxes collected equals the loan amount. At that time, the note will be cancelled and the operating covenant will terminate. If, after ten years of operation, a shortfall exists between the revenues collected and the outstanding loan amount, the note will be cancelled and the operating covenant will terminate. Further, if at any time through no fault of the dealership certain future events outside of the dealership control occur the note will be cancelled and the operating covenant will terminate. The balance at June 30, 2015 is $1,441,856. Owner Participation Agreement — Torre Nissan In June 2011, the Former Agency entered into an Owner Participation Agreement (OPA) with an autodealer, Mega Dealer, LLC ("Torre Nissan") that provides for the Former Agency to provide a rehabilitation loan to Torre Nissan of up to $1,500,000 for the remodeling of the existing dealership and an expansion of the dealership facility to accommodate a new line of electric and commercial vehicles. The new expansion will also include service and parts sales facilities. In connection with the OPA, Torre Nissan has executed a promissory note, which is secured by a subordinated deed of trust, and an operating covenant. The loan will be repaid by crediting future sales and property tax increment taxes generated on the site until the cumulative taxes collected equals the loan amount. If Nissan Motor Company ceases to exist, the note will be cancelled and the operating covenant will terminate. At the end of the ten-year operating covenant, the operating covenant will terminate and the note will be cancelled, and any outstanding loan balance will be forgiven. The balance at June 30, 2015 is $1,329,331. c. Due from other Governments La Quinta Library In April 2005, an advance of $2,490,273 was made from the Former Agency to provide funding for the construction of the public library. The advance accrues interest at the earnings rate of the City's investment pool fund. The remaining balance of this advance at June 30, 2015, is $1,654,779. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) d. Long -Term Debt A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2015, follows: Total $ 270,470,486 $ 74,145,482 $ 73,517,473 $ 10,924,382 $ 260,174,113 $ 6,600,000 Tax Allocation Bonds As of June 30, 2015, the following issuances of Tax Allocation Bonds were outstanding: Series 2011, Project Area No. 2 On June 6, 2011, the Former Agency issued subordinate taxable tax allocation bonds in the amount of $6,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 2. The 2011 tax allocation bonds were issued at a discount of $86,207 and issuance costs of $108,500. The bonds consist of $190,000 of term bonds that accrue interest at 5.375% and mature on September 1, 2016, $280,000 of term bonds that accrue interest at 7.125% and mature on September 1, 2021, $380,000 of term bonds that accrue interest at 7.600% and mature on September 1, 2026, and $5,150,000 of term bonds that accrue interest at 8.150% and mature on September 1, 2031. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2015, is $5,890,000 with an unamortized discount of $73,856. The minimum annual requirements to amortize the bond payable as of June 30, 2015, are as follows: Balance at Interest Balance at June Due within one $ 471,780 July 1, 2014 Additions Defeasements Deletions 30, 2015 year Tax allocation bonds $ 126,175,000 $ 65,600,000 $ $ 5,910,000 $ 185,865,000 $ 6,035,000 City loans 34,976,516 - 1,705,387 33,271,129 - Revenue bonds 103,810,000 - 73,405,000 2,615,000 27,790,000 565,000 Unamortized premiums/discounts 5,508,970 8,545,482 112,473 693,995 13,247,984 - Total $ 270,470,486 $ 74,145,482 $ 73,517,473 $ 10,924,382 $ 260,174,113 $ 6,600,000 Tax Allocation Bonds As of June 30, 2015, the following issuances of Tax Allocation Bonds were outstanding: Series 2011, Project Area No. 2 On June 6, 2011, the Former Agency issued subordinate taxable tax allocation bonds in the amount of $6,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 2. The 2011 tax allocation bonds were issued at a discount of $86,207 and issuance costs of $108,500. The bonds consist of $190,000 of term bonds that accrue interest at 5.375% and mature on September 1, 2016, $280,000 of term bonds that accrue interest at 7.125% and mature on September 1, 2021, $380,000 of term bonds that accrue interest at 7.600% and mature on September 1, 2026, and $5,150,000 of term bonds that accrue interest at 8.150% and mature on September 1, 2031. The interest and principal on the bonds are payable from pledged tax increment revenues. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2015, is $5,890,000 with an unamortized discount of $73,856. The minimum annual requirements to amortize the bond payable as of June 30, 2015, are as follows: Totals $ 5,890,000 $ 9,263,828 Principal Interest 2016 $ 40,000 $ 471,780 2017 40,000 469,630 2018 50,000 466,774 2019 50,000 463,211 2020 55,000 459,471 2021-2025 335,000 2,228,929 2026-2030 475,000 2,075,861 2031-2035 1,125,000 1,822,544 2036-2040 3,720,000 805,628 Totals $ 5,890,000 $ 9,263,828 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Series 2013A On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the amount of $97,190,000 to refinance outstanding long term obligations held by the Successor Agency. The 2013 Series A tax allocation bonds were issued at a premium of $6,056,280 and issuance costs of $480,001. Interest rates on the bonds range from 3.00% to 5.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from property tax revenue. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2015, is $92,500,000 with an unamortized premium of $5,540,652. The minimum annual requirements to amortize the bond payable as of June 30, 2015, are as follows: Totals $ 92,500,000 $ 46,808,381 Series 20138 On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the amount of $23,055,000 to refinance outstanding long term obligations held by the Successor Agency. The 2013 Series B tax allocation bonds were issued at a discount of $8,951 and issuance costs of $122,274. The bonds consist of $3,710,000 of term bonds that accrue interest at 5.240% and mature on September 1, 2026, $4,335,000 of term bonds that accrue interest at 5.550% and mature on September 1, 2029, and $5,115,000 of term bonds that accrue interest at 5.820% and mature on September 1, 2032. The remaining $9,895,000 matures annually with rate ranging from 0.76% to 4.89%. The interest and principal on the bonds are payable from property tax revenue. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2015, is $21,875,000 with an unamortized discount of $8,055. Principal Interest 2016 $ 3,405,000 $ 4,385,588 2017 3,505,000 4,264,364 2018 3,645,000 4,121,362 2019 3,790,000 3,953,713 2020 3,985,000 3,759,388 2021-2025 23,100,000 15,523,564 2026-2030 29,390,000 9,105,685 2031-2034 21,680,000 1,694,717 Totals $ 92,500,000 $ 46,808,381 Series 20138 On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the amount of $23,055,000 to refinance outstanding long term obligations held by the Successor Agency. The 2013 Series B tax allocation bonds were issued at a discount of $8,951 and issuance costs of $122,274. The bonds consist of $3,710,000 of term bonds that accrue interest at 5.240% and mature on September 1, 2026, $4,335,000 of term bonds that accrue interest at 5.550% and mature on September 1, 2029, and $5,115,000 of term bonds that accrue interest at 5.820% and mature on September 1, 2032. The remaining $9,895,000 matures annually with rate ranging from 0.76% to 4.89%. The interest and principal on the bonds are payable from property tax revenue. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2015, is $21,875,000 with an unamortized discount of $8,055. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) The minimum annual requirements to amortize the bond payable as of June 30, 2015, are as follows: Totals $ 21,875,000 $ 11,925,354 2014 Series A Local Agency Tax Allocation Bonds On July 9, 2014, the Successor Agency issued tax allocation refunding bonds in the amount of $65,600,000, with a premium of $8,545,482, to refinance outstanding 2004 Series A Revenue Bonds of $72,865,000 with interest payments ranging between 3% to 5.25%. The net proceeds of $73,402,709 (after payment of $592,017 in issuance costs) plus an additional $4,012,653 of 2004 Series A sinking fund monies were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent; and issued to pay-off $77,415,362 of remaining principal and accrued interest of 2004 Series A. As a result, the 2004 Series A bonds are considered to be defeased and the liability for those bonds has been removed from the Successor Agency's long-term debt. The Successor Agency in effect reduced its aggregate debt service payments over the remaining maturity period of the 2004 Series A by $11,814,531 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $7,801,878. The minimum annual requirements to amortize the 2014 Series A bonds payable as of June 30, 2015, are as follows: Principal Interest 2016 $ 865,000 $ 1,032,011 2017 880,000 1,016,504 2018 900,000 996,053 2019 920,000 970,318 2020 950,000 939,623 2021-2025 5,375,000 4,039,264 2026-2030 6,870,000 2,473,401 2031-2033 5,115,000 458,180 Totals $ 21,875,000 $ 11,925,354 2014 Series A Local Agency Tax Allocation Bonds On July 9, 2014, the Successor Agency issued tax allocation refunding bonds in the amount of $65,600,000, with a premium of $8,545,482, to refinance outstanding 2004 Series A Revenue Bonds of $72,865,000 with interest payments ranging between 3% to 5.25%. The net proceeds of $73,402,709 (after payment of $592,017 in issuance costs) plus an additional $4,012,653 of 2004 Series A sinking fund monies were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent; and issued to pay-off $77,415,362 of remaining principal and accrued interest of 2004 Series A. As a result, the 2004 Series A bonds are considered to be defeased and the liability for those bonds has been removed from the Successor Agency's long-term debt. The Successor Agency in effect reduced its aggregate debt service payments over the remaining maturity period of the 2004 Series A by $11,814,531 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $7,801,878. The minimum annual requirements to amortize the 2014 Series A bonds payable as of June 30, 2015, are as follows: Totals $ 65,600,000 $ 37,657,250 Principal Interest 2016 $ 1,725,000 $ 3,073,750 2017 2,205,000 3,023,425 2018 2,270,000 2,956,300 2019 2,340,000 2,875,450 2020 2,435,000 2,779,950 2021-2025 13, 995, 000 11, 975, 375 2026-2030 17,845,000 8,013,875 2031-2035 22,785,000 2,959,125 Totals $ 65,600,000 $ 37,657,250 CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) Revenue Bonds As of June 30, 2015, the following issuances of Revenue Bonds were outstanding: 2004 Series A Local Agency Revenue Bonds On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount of $90,000,000 to finance projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2 and to advance refund the Agency's Redevelopment Project Areas No. 1 and 2, 1995 Housing Tax Allocation Bonds. The 2004 local agency revenue bonds were issued with issuance costs of $2,600,229 and a premium of $476,496. Interest is payable semi-annually on March 1 and September 1 of each year, commencing September 1, 2005. Interest payments range from 3% to 5.25% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September 1, 2024, September 1, 2029 and September 1, 2034, are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2017, September 1, 2025 and September 1, 2030, respectively, and on each September 1, thereafter at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. A portion of the proceeds were used to obtain a surety agreement to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. These bonds were defeased as of June 30, 2015, with the issuance of the 2014 tax allocation refunding bonds. 2011 Series A Local Agency Subordinate Taxable Revenue Bonds On June 9, 2011, the La Quinta Financing Authority issued revenue bonds in the amount of $28,850,000 to finance projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. The 2011 local agency subordinate taxable revenue bonds were issued with issuance costs of $323,375 and a discount of $308,839. Interest is payable semi-annually on March 1 and September 1 of each year, commencing September 1, 2011. Interest payments range from 3.750% to 8.185% per annum. The interest and principal on the bonds are payable from pledged tax increment revenues. Term bonds maturing on September 1, 2026, September 1, 2031 and September 1, 2036, are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on September 1, 2022, September 1, 2027, and September 1, 2032, respectively, and on each September 1 thereafter at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) A portion of the proceeds were used to fund the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The principal balance of outstanding bonds at June 30, 2015, is $27,790,000 with an unamortized discount of $259,303. The minimum annual requirements to amortize the bond payable as of June 30, 2015, are as follows: 2016 2017 2018 2019 2020 2021-2025 2026-2030 2031-2035 2036-2037 Totals Loans from the City of La Quinta Principal Interest $ 565,000 $ 2,113,843 590,000 2,083,196 625,000 2,047,537 665,000 2,006,783 705,000 1,961,202 4,360,000 8,935,840 6,290,000 6,926,554 9,195,000 3,898,421 4,795,000 394,422 $ 27,790,000 $ 30,367,798 The City of La Quinta loaned money to the Former Agency to cover operating and capital shortfalls. These loans were paid back to the City during the 2010-2011 fiscal year. This repayment was disallowed by the California Department of Finance during their Asset Transfer Review of the Former Agency and demanded that this money be remitted to the State for distribution to the effecting taxing entities. The City reversed this transaction and the payable to the State is properly recorded by the Successor Agency as of June 30, 2013. In a letter dated November 6, 2013, the California Department of Finance approved the loans as enforceable obligations to be paid through Successor Agency property tax. This loan received is split between the City and the Housing Authority. As of June 30, 2015, the amount due to the City of La Quinta and the Housing Authority was $33,271,129. e. Pledged Tax Revenues The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $349,677,611 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 $14,465,537 and the debt service obligation on the bonds was $19,084,062. CITY OF LA QUINTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued) f. Conduit Debt Financing 2002 Series B Multifamily Housinq Revenue Bonds In April 2002, the Former Agency issued $3,000,000 of 2002 Series B Multifamily Housing Revenue Bonds to provide financing for the acquisition, construction and equipping of a multifamily senior rental housing project known as Miraflores Apartments located in the City of La Quinta. The bonds mature on June 1, 2035, and bear interest at 5.5% per annum. Outstanding bonds at June 30, 2015, are $2,580,000. The bond is secured solely by the credit facility, Fannie Mae, and by a pledge of the trust estate comprised of bond proceeds and property. The bond is not an obligation of the issue, but payable solely from the security. g. Insurance The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at June 30, 2015. Note 20: Net Position Restatements Pursuant to GASB Statement No. 68 "Accounting and Financial Reporting For Pensions — An Amendment of GASB Statement No. 27'; the City's Governmental Net Position was restated as of June 30, 2014, to reflect the City's proportionate share of the net pension liability as of June 30, 2013. The restatements were reflected as follows: Net Position at July 1, 2014 Miscellaneous Total Previously Plans Restatement Stated Restated Governmental Net Position $ 8,033,971 $ 8,033,971 $ 665,190,960 $ 657,156,989 June 30, 2013 (NPL) $ 8,033,971 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERALFUND YEAR ENDED JUNE 30, 2015 See Notes to Required Supplementary Information Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated $ 84,638,448 $ 84,638,448 $ 84,638,448 $ - Resources (Inflows): Taxes 23,657,630 24,268,930 25,959,888 1,690,958 Licenses and permits 1,118,400 1,184,200 1,356,978 172,778 Intergovernmental 9,267,501 9,788,596 9,774,046 (14,550) Charges for services 1,013,994 1,122,194 1,341,438 219,244 Use of money and property 679,462 679,462 604,061 (75,401) Fines and forfeitures 138,150 237,650 283,798 46,148 Miscellaneous 107,505 155,905 210,396 54,491 Transfers in 142,978 323,189 352,658 29,469 Capital leases - - 9,000 9,000 Amounts Available for Appropriations 120,764,068 122,398,574 124,530,711 2,132,137 Charges to Appropriation (Outflow): General government Legislative 283,031 283,031 277,493 5,538 City Manager 872,970 1,190,743 1,003,783 186,960 City Attorney 380,000 380,000 378,308 1,692 Marketing 623,916 624,736 607,472 17,264 Human Resources 368,601 396,156 348,150 48,006 City Clerk 441,501 559,375 503,668 55,707 Fiscal Services 1,017,589 1,118,930 1,076,881 42,049 Central Services 855,394 996,504 648,764 347,740 Public safety Police 13,560,025 13,666,143 14,080,981 (414,838) Public Buildings 959,255 962,655 913,208 49,447 Code Compliance 804,088 829,037 764,965 64,072 Building & Safety 608,343 610,803 668,164 (57,361) Fire 5,378,711 5,413,992 5,103,896 310,096 Emergency Services 91,111 91,501 86,282 5,219 Planning and development Administration 1,108,586 1,199,933 995,443 204,490 Current Planning 352,079 384,118 378,414 5,704 Parks and recreation Community Services Admin 1,008,094 1,056,543 993,976 62,567 Wellness Center 375,458 375,054 345,216 29,838 Parks & Recreation 185,853 191,011 200,788 (9,777) Park Maintenance 1,413,905 1,440,934 1,523,085 (82,151) Public works Administration 456,767 393,780 470,428 (76,648) Development Services 704,786 735,493 586,424 149,069 Maintenance/Operations - Street 182,896 575,423 499,942 75,481 Maintenance/Operations - Lighting 532,084 546,534 356,641 189,893 Engineering Services 1,208,482 1,044,131 1,286,368 (242,237) Capital outlay - 207,300 216,300 (9,000) Debt service: Principal retirement - - 13,560 (13,560) Interest and fiscal charges - - 4,732 (4,732) Transfers out 2,173,739 4,922,620 3,388,815 1,533,805 Total Charges to Appropriations 35,947,264 40,196,480 37,722,147 2,474,333 Budgetary Fund Balance, June 30 $ 84,816,804 $ 82,202,094 $ 86,808,564 $ 4,606,470 See Notes to Required Supplementary Information CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY PA NO. 1 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1, as restated Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Planning and development Administration Low/Mod Housing Total Charges to Appropriations Budgetary Fund Balance, June 30 See Notes to Required Supplementary Information Variance with $ 2,809,233 $ 10,795,401 $10,941,952 $ 146,551 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,884,667 $ 10,881,743 $ 10,881,743 $ - 245,500 245,500 379,348 133,848 3,130,167 11,127,243 11,261,091 133,848 66,900 77,808 72,770 5,038 254,034 254,034 246,369 7,665 320,934 331,842 319,139 12,703 $ 2,809,233 $ 10,795,401 $10,941,952 $ 146,551 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY PA NO. 2 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Planning and development Low/Mod Housing Debt service: Principal retirement Interest and fiscal charges Total Charges to Appropriations Budgetary Fund Balance, June 30 See Notes to Required Supplementary Information Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,146,138 $ 1,203,240 $ 1,203,240 $ - 423,600 423,600 421,797 (1,803) 206,400 206,400 203,647 (2,753) 4,200 4,200 1,800 (2,400) 1,780,338 1,837,440 1,830,484 (6,956) 354,726 354,726 343,847 10,879 55,823 55,823 55,823 - 183,933 183,933 137,022 46,911 594,482 594,482 536,692 57,790 $1,185,856 $ 1,242,958 $ 1,293,792 $ 50,834 CITY OF LA QUINTA MISCELLANEOUS FIRST TIER PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability Covered -Employee Payroll Proportionate Share of the Net Pension Liability as Percentage of Covered -Employee Payroll Plan Fiduciary Net Position Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2015 0.10339% 6,433,125 4,579,059 140.49% 31,472,884 83.03% Notes to Schedule: Benefit Changes: These figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. Changes of Assumptions: None. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. CITY OF LA QUINTA MISCELLANEOUS SECOND TIER PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Proportion of the Net Pension Liability 0.00000% Proportionate Share of the Net Pension Liability $ 96 Covered -Employee Payroll $ 324,252 Proportionate Share of the Net Pension Liability as Percentage of Covered -Employee Payroll 0.03% Plan Fiduciary Net Position $ 468 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.98% Notes to Schedule: Benefit Changes: These figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. Changes of Assumptions: None. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. CITY OF LA QUINTA MISCELLANEOUS PEPRA PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability Covered -Employee Payroll Proportionate Share of the Net Pension Liability as Percentage of Covered -Employee Payroll Plan Fiduciary Net Position Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2015 0.00000% $ 170 $ 469,277 0.04% $ 833 83.05% Notes to Schedule: Benefit Changes: These figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. Changes of Assumptions: None. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. CITY OF LA QUINTA MISCELLANEOUS FIRST TIER PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Actuarially Determined Contribution $ 728,073 Contribution in Relation to the Actuarially Determined Contribution (728,073) Contribution Deficiency (Excess) $ - Covered -Employee Payroll $ 4,579,059 Contributions as a Percentage of Covered -Employee Payroll 15.90% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Single and Agent Employers Example Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality June 30, 2012 Entry age normal Level percentage of payroll, closed 15 years 5 -year smoothed market 2.75% Varies by Entry Age and Service 7.5% net of pension plan investment expense, including inflation 50 Years Derived using CaIPERS Membership Data for all Funds CITY OF LA QUINTA MISCELLANEOUS PEPRA PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Actuarially Determined Contribution $ 29,330 Contribution in Relation to the Actuarially Determined Contribution (29,330) Contribution Deficiency (Excess) $ - Covered -Employee Payroll $ 468,217 Contributions as a Percentage of Covered -Employee Payroll 6.26% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Single and Agent Employers Example Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality June 30, 2012 Entry age normal Level percentage of payroll, closed 15 years 5 -year smoothed market 2.75% Varies by Entry Age and Service 7.5% net of pension plan investment expense, including inflation 52 years Derived using CaIPERS Membership Data for all Funds CITY OF LA QUINTA MISCELLANEOUS PEPRA PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Actuarially Determined Contribution $ 29,330 Contribution in Relation to the Actuarially Determined Contribution (29,330) Contribution Deficiency (Excess) $ - Covered -Employee Payroll $ 468,217 Contributions as a Percentage of Covered -Employee Payroll 6.26% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Single and Agent Employers Example Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate of return Retirement age Mortality June 30, 2012 Entry age normal Level percentage of payroll, closed 15 years 5 -year smoothed market 2.75% Varies by Entry Age and Service 7.5% net of pension plan investment expense, including inflation 52 years Derived using CaIPERS Membership Data for all Funds THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2015 Budget Procedures General Budget Policies The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City manager or his designee is authorized to transfer budgeted amounts between the accounts of any department or funds that are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. FncumhrnncPs Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue, and similar governmental funds. Encumbrances outstanding at year-end are reported as an unassigned fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year end are completed. They do not constitute expenditures or estimated liabilities. Budget Basis of Accounting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Public Safety Fund, Transportation Uniform Mitigation Fee Fund, Community Center, and Infrastructure Fund did not adopt a budget. Excess Expenditures over budget Budget Actual Variance General Fund: Public Safety Police 13,666,143 14,080,981 414,838 Building & Safety Admin. 610,803 668,164 57,361 Parks and recreation Parks & recreation 191,011 200,788 9,777 Parks maintenance 1,440,934 1,523,085 82,151 Public Works Administration 393,780 470,428 76,648 Engineering services 1,044,131 1,286,368 242,237 OTHER GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures that are legally required to be accounted for in a separate fund. The City of La Quinta has the following Special Revenue Funds: State Gas Tax Fund — To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street -related purposes only. Library Fund — To account for revenues from property tax increment dedicated library services. Federal Assistance Fund — To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. State Law Enforcements Block Grant (SLEBG) Fund — To account for state funded "Citizens for Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti -gang community crime prevention. Indian Gaming Fund — To account for contributions for public safety activities to reduce crime and increase public safety. Lighting and Landscape Special Assessment District 89-1 Fund — To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. Quimby Fund — To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. La Quinta Public Safety Officer Fund — To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of approved artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites. South Coast Air Quality Fund — To account for contributions from the South Coast Air Quality Management District. Use is limited to reduction and control of airborne pollutants. AB 939 Fund — To account for the State mandated program to reduce waste sent to the landfills through recycling efforts. Development Agreement Fund — To account for the proceeds of development agreement revenues collected and the related expenditures in accordance with State requirements. Law Enforcement — To account for law enforcement grants. Justice Assistance Grant — To account for Federal Bureau of Justice Block Grant program grant funds, which are used to reduce crime and improve public safety. Measure A - To account for the revenues and expenditures related to Measure A monies. Transportation Uniform Mitigation Fee - To account for the revenues and expenditures related to Transportation Uniform Mitigation Fee monies. CAPITAL PROJECT FUNDS Capital projects funds account for the financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. Infrastructure Fund - To account for the accumulation of resources provided through developer fees for the acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this date, and is budgeted by the Council through adoption of the annual capital improvement program budget. Transportation Fund, Parks and Recreations Fund, Library Development Fund, Community Center Fund, Street Facility Fund, Park Facility Fund, Fire Facility Fund — To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City's infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight new funds have been established to account for the specific impact areas of these fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program budget. DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental long-term debt principal and interest. La Quinta Financing Authority Fund — To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center and 2004 Local Agency Revenue Bond debt obligations. CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Total Assets Liabilities, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds Federal Gas Tax Library Assistance $ 378,072 $ 3,681,842 $ 1,067 4,501 - 541,994 $ 379,139 $ 4,228,337 $ SLEBG $ 93,048 111 $ 93,159 6,046 - - - 12,914 - 6,046 - 12,914 - - - - 93,159 - 4,228,337 - - 373,093 - - - - - (12,914) - 373,093 4,228,337 (12,914) 93,159 $ 379,139 $ 4,228,337 $ - $ 93,159 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Total Assets Liabilities, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Unassigned Total Fund Balances Total Liabilities and Fund Balances Revenue Funds Lighting and Indian Gaming Landscaping Quimby Public Safety $ 39,433 $ - $ 5,653,872 $ 33,509 43 - 6,160 - 17,336 - 39,476 $ 17,336 $ 5,660,032 $ 35 33,544 - 597 - - 1,431 - - - 30,774 - - 1,431 31,371 - - - - - 33,544 - - 5,660,032 - 38,045 - - - - (14,035) - - 38,045 (14,035) 5,660,032 33,544 $ 39,476 $ 17,336 $ 5,660,032 $ 33,544 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 $ - $ 14,117 $ 8,211 $ - Accrued liabilities - - Special Revenue Funds - Unearned revenues Art in Public South Coast Development Deposits payable Places Air Quality AB 939 Agreement Assets: - - - - Pooled cash and investments $ 682,057 $ 139,738 $ 754,372 $ 133,813 Receivables: - - - - Accounts - - - - Taxes - - - - Accrued interest 753 148 825 146 Due from other governments - - - - Total Assets $ 682,810 $ 139,886 $ 755,197 $ 133,959 Liabilities, and Fund Balances: Liabilities: Accounts payable $ - $ 14,117 $ 8,211 $ - Accrued liabilities - - - - Unearned revenues - - - - Deposits payable - - - 133,770 Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - 14,117 8,211 133,770 Fund Balances: Restricted for: Planning and development projects - 125,769 746,986 - Public safety - - - - Community services 682,810 - - - Public works - - - - Capital Projects - - - 189 Unassigned - - - - Total Fund Balances 682,810 125,769 746,986 189 Total Liabilities and Fund Balances $ 682,810 $ 139,886 $ 755,197 $ 133,959 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Revenue Funds Liabilities, and Fund Balances: Liabilities: Accounts payable $ 1,354 $ Justice 27,312 Transportation - Law Assistance Unearned revenues Uniform - - Enforcement Grant Measure A Mitigation Fee Assets: Due to other governments - - - - Pooled cash and investments $ 156,341 $ - $ 601,322 $ 27,856 Receivables: - - - Total Liabilities 1,354 Accounts 1,807 - - - Taxes - - 115,926 - Accrued interest 181 - 727 37 Due from other governments 15,517 7,978 - - Total Assets $ 173,846 $ 7,978 $ 717,975 $ 27,893 Liabilities, and Fund Balances: Liabilities: Accounts payable $ 1,354 $ - $ - $ 27,312 Accrued liabilities - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - 5,330 - - Advances from other funds - - - - Total Liabilities 1,354 5,330 - 27,312 Fund Balances: Restricted for: Planning and development projects - - - - Public safety 172,492 2,648 - - Community services - - - - Public works - - 717,975 581 Capital Projects - - - - Unassigned - - - - Total Fund Balances 172,492 2,648 717,975 581 Total Liabilities and Fund Balances $ 173,846 $ 7,978 $ 717,975 $ 27,893 CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Total Assets Liabilities, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Unassigned Total Fund Balances Total Liabilities and Fund Balances Capital Projects Funds Parks and Library Infrastructure Transportation Recreation Development $ 23,314 $ 3,760,289 $ 140,525 $ - 25 3,102 - - $ 23,339 $ 3,763,391 $ 140,525 $ - 1,654,779 1,654,779 - - 140,525 - 23,339 3,763,391 - - - - - (1,654,779) 23,339 3,763,391 140,525 (1,654,779) $ 23,339 $ 3,763,391 $ 140,525 $ - CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 (CONTINUED) Capital Projects Funds Community Center Street Facility Park Facility Fire Facility Assets: Pooled cash and investments $ 86,688 $ - $ 2 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest 92 - 1 - Due from other governments - - - - Total Assets $ 86,780 $ - $ 3 $ - Liabilities, and Fund Balances: Liabilities: Accounts payable - Accrued liabilities - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - 1,907,295 - 638,219 Total Liabilities - 1,907,295 - 638,219 Fund Balances: Restricted for: Planning and development projects - - - - Public safety - - - - Community services - - - - Public works - - 3 - Capital Projects 86,780 - - - Unassigned - (1,907,295) - (638,219) Total Fund Balances 86,780 (1,907,295) 3 (638,219) Total Liabilities and Fund Balances $ 86,780 $ - $ 3 $ - CITY OF LA QUINTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Due from other governments Total Assets Liabilities, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Advances from other funds Total Liabilities Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital Projects Unassigned Total Fund Balances Total Liabilities and Fund Balances Debt Service Funds Financing Authority Total Governmental Funds $ 16,386,093 - 1,807 - 115,926 - 17,954 - 582,825 $ 17,104,605 $ - $ 50,994 6,643 1,431 133,770 1,654,779 49,018 2,545,514 4,442,149 - 872,755 - 301,843 - 10,711,704 - 1,129,697 - 3,873,699 - (4,227,242) 12,662,456 $ - $ 17,104,605 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Federal Gas Tax Library Assistance SLEBG 1,118,842 2,407,351 16,065 108,535 5,252 21,966 - 562 1,124,094 2,429,317 16,065 109,097 - 1,723,733 - - 1,122,909 - - - 1,122,909 1,723,733 1,185 705,584 16,065 109,097 - 349,125 - - (688,310) (473,035) (16,065) (79,885) (688,310) (123,910) (16,065) (79,885) (687,125) 581,674 - 29,212 1,060,218 3,646,663 (12,914) 63,947 $ 373,093 $ 4,228,337 $ (12,914) $ 93,159 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Lighting and Indian Gaming Landscaping Quimby Public Safety 940,221 - - 19 - 32,745 182 - - 35,194 - 19 940,221 67,939 182 960,597 - - - 960,597 - - 19 (20,376) 67,939 182 - - 195,252 2,000 (2,738,126) - - - (2,542,874) 2,000 19 (20,376) (2,474,935) 2,182 38,026 6,341 8,134,967 31,362 $ 38,045 $ (14,035) $ 5,660,032 $ 33,544 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Art in Public South Coast Development Places Air Quality AB 939 Agreement - 48,091 - - 3,922 739 4,279 62 111,435 - - - - - - 84,849 115,357 48,830 4,279 84,911 - 28,855 31,827 - 11,325 - - - 99,108 - - - 110,433 28,855 31,827 4,924 19,975 (27,548) 84,911 (84,849) - - - (84,849) 4,924 19,975 (27,548) 62 677,886 105,794 774,534 127 $ 682,810 $ 125,769 $ 746,986 $ 189 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Special Revenue Funds Justice Transportation Law Assistance Uniform Enforcement Grant Measure A Mitigation Fee $ - $ - $ 718,583 $ - 42,199 7,978 - - 952 - 3,568 331 43,151 7,978 722,151 331 46,976 - - - 46,976 - - - (3,825) 7,978 722,151 331 - - 4,361 - (7,978) (474,865) - (7,978) (470,504) - (3,825) - 251,647 331 176,317 2,648 466,328 250 $ 172,492 $ 2,648 $ 717,975 $ 581 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Capital Projects Funds Parks and Library Infrastructure Transportation Recreation Development 131 15,586 65 - - 1,394,601 610,854 103,949 131 1,410,187 610,919 103,949 908 8,576 908 8,576 131 1,410,187 610,011 95,373 - 2,621,437 - - (1,787,715) - - - 833,722 - - 131 2,243,909 610,011 95,373 23,208 1,519,482 (469,486) (1,750,152) $ 23,339 $ 3,763,391 $ 140,525 $ (1,654,779) CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 (CONTINUED) Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Capital Projects Funds Community Center Street Facility Park Facility Fire Facility 215 - 7 - 39,214 57,551 11,898 131,990 39,429 57,551 11,905 131,990 9,757 - 3,570 9,757 - 3,570 39,429 47,794 11,905 128,420 - 11,902 - - - (11,902) - - 11,902 (11,902) - 39,429 59,696 3 128,420 47,351 (1,966,991) - (766,639) $ 86,780 $ (1,907,295) $ 3 $ (638,219) CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Debt Service Funds Total Financing Governmental Authority Funds $ - $ 718,583 940,221 3,749,061 673,048 763,631 - 2,496,686 - 84,849 673,048 8,753,031 4,506 4,506 - 46,976 - 60,682 - 1,735,058 - 2,083,506 - 99,108 525,000 525,000 148,046 170,857 677,552 4,725,693 (4,504) 4,027,338 5,371 3,189,448 (6,362,730) 5,371 (3,173,282) 867 854,056 (867) 11,808,400 $ - $ 12,662,456 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE STATE GAS TAX YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,060,218 $ 1,060,218 $ 1,060,218 $ - 1,116, 863 1,116, 863 1,118, 842 1,979 200 200 5,252 5,052 2,177,281 2,177,281 2,184,312 7,031 1,116,862 1,116,862 1,122,909 (6,047) - 688,310 688,310 - 1,116,862 1,805,172 1,811,219 (6,047) $1,060,419 $ 372,109 $ 373,093 $ 984 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIBRARY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Transfers out Total Charges to Appropriations Variance with Budgetary Fund Balance, June 30 $ 3,887,421 $ 2,566,259 $ 4,228,337 $ 1,662,078 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 3,646,663 $ 3,646,663 $ 3,646,663 $ - 2,000,000 2,000,000 2,407,351 407,351 6,000 6,000 21,966 15,966 - - 349,125 349,125 5,652,663 5,652,663 6,425,105 772,442 1,765,242 1,765,242 1,723,733 41,509 - 1,321,162 473,035 848,127 1,765,242 3,086,404 2,196,768 889,636 Budgetary Fund Balance, June 30 $ 3,887,421 $ 2,566,259 $ 4,228,337 $ 1,662,078 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FEDERAL ASSISTANCE YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (12,914) $ (12,914) $ (12,914) $ - 145,000 145,000 16,065 (128,935) 132,086 132,086 3,151 (128,935) 30,000 30,000 16,065 13,935 30,000 30,000 16,065 13,935 Budgetary Fund Balance, June 30 $ 102,086 $ 102,086 $ (12,914) $ (115,000) CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE SLEBG YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 63,947 $ 63,947 $ 63,947 $ - 100,000 153,796 108,535 (45,261) 100 100 562 462 164,047 217,843 173,044 (44,799) 100,000 153,796 79,885 73,911 100,000 153,796 79,885 73,911 Budgetary Fund Balance, June 30 $ 64,047 $ 64,047 $ 93,159 $ 29,112 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE INDIAN GAMING YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 38,026 $ 38,026 $ 38,026 $ - Resources (Inflows): Intergovernmental - 38,026 - (38,026) Use of money and property - - 19 19 Amounts Available for Appropriations 38,026 76,052 38,045 (38,007) Charges to Appropriations (Outflow): Transfers out - 38,026 - 38,026 Total Charges to Appropriations - 38,026 - 38,026 Budgetary Fund Balance, June 30 $ 38,026 $ 38,026 $ 38,045 $ 19 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIGHTING AND LANDSCAPING YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Assessments Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 6,341 $ 6,341 $ 6,341 $ - 960,000 960,000 940,221 (19,779) 966,341 966,341 946,562 (19,779) 960,000 960,000 960,597 (597) 960,000 960,000 960,597 (597) Budgetary Fund Balance, June 30 $ 6,341 $ 6,341 $ (14,035) $ (20,376) CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE QUIMBY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budget Amounts Original Final $8,134,967 $ 8,134,967 Actual Amounts $ 8,134,967 Variance with Final Budget Positive (Negative) 20,000 20,000 32,745 12,745 923,000 923,000 35,194 (887,806) - - 195,252 195,252 9,077,967 9,077,967 8,398,158 (679,809) 294,887 7,860,360 2,738,126 5,122,234 294,887 7,860,360 2,738,126 5,122,234 Budgetary Fund Balance, June 30 $ 8,783,080 $ 1,217,607 $ 5,660,032 $ 4,442,425 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Community services Capital outlay Transfers out Total Charges to Appropriations Budget Amounts Original Final $ 677,886 $ 677,886 Actual Amounts $ 677,886 Variance with Final Budget Positive (Negative) 3,500 3,500 3,922 422 50,000 50,000 111,435 61,435 731,386 731,386 793,243 61,857 14,200 14,200 150,000 150,000 - 200,000 164,200 364,200 11,325 2,875 99,108 50,892 - 200,000 110,433 253,767 Budgetary Fund Balance, June 30 $ 567,186 $ 367,186 $ 682,810 $ 315,624 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE SOUTH COAST AIR QUALITY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Planning and development Total Charges to Appropriations Budget Amounts Original Final $ 105,794 $ 105,794 Actual Amounts $ 105,794 Variance with Final Budget Positive (Negative) 40,200 40,200 48,091 7,891 300 300 739 439 146,294 146,294 154,624 8,330 40,200 40,200 28,855 11,345 40,200 40,200 28,855 11,345 Budgetary Fund Balance, June 30 $ 106,094 $ 106,094 $ 125,769 $ 19,675 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE AB 939 YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Planning and development Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 774,534 $ 774,534 $ 774,534 $ - 3,000 3,000 4,279 1,279 777,534 777,534 778,813 1,279 124,087 126,087 31,827 94,260 124,087 126,087 31,827 94,260 Budgetary Fund Balance, June 30 $ 653,447 $ 651,447 $ 746,986 $ 95,539 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE DEVELOPMENT AGREEMENT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 127 $ 127 Variance with Final Budget Actual Positive Amounts (Negative) $ 127 $ - - 62 62 - - 84,849 84,849 127 127 85,038 84,911 - 84,849 84,849 - - 84,849 84,849 - $ 127 $ (84,722) $ 189 $ 84,911 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LAW ENFORCEMENT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Total Charges to Appropriations Budget Amounts Original Final $ 176,317 $ 176,317 Actual Amounts $ 176,317 Variance with Final Budget Positive (Negative) 41,078 41,078 42,199 1,121 500 500 952 452 217,895 217,895 219,468 1,573 55,650 55,650 46,976 8,674 55,650 55,650 46,976 8,674 Budgetary Fund Balance, June 30 $ 162,245 $ 162,245 $ 172,492 $ 10,247 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,648 $ 2,648 $ 2,648 $ - 12,978 16,518 7,978 (8,540) 15,626 19,166 10,626 (8,540) 12,978 16,518 7,978 8,540 12,978 16,518 7,978 8,540 Budgetary Fund Balance, June 30 $ 2,648 $ 2,648 $ 2,648 $ - CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE MEASURE A YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 466,328 $ 466,328 $ 466,328 $ - 754,500 754,500 718,583 (35,917) - - 3,568 3,568 - - 4,361 4,361 1,220,828 1,220,828 1,192,840 (27,988) 774,627 1,199,025 474,865 724,160 774,627 1,199,025 474,865 724,160 $ 446,201 $ 21,803 $ 717,975 $ 696,172 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (90,923) $ (90,923) $ (90,923) $ - Resources (Inflows): Intergovernmental 19,787,244 19,535,900 1,758,039 (17,777,861) Use of money and property - - 270 270 Contributions - - 1,956,452 1,956,452 Developer participation 394,090 1,083,607 16,850 (1,066,757) Transfers in 5,406,146 54,913,765 8,495,225 (46,418,540) Amounts Available for Appropriations 25,496,557 75,442,349 12,135,913 (63,306,436) Charges to Appropriation (Outflow): Capital outlay 4,734,135 42,472,245 10,781,778 31,690,467 Transfers out - - 2,571,169 (2,571,169) Total Charges to Appropriations 4,734,135 42,472,245 13,352,947 29,119,298 Budgetary Fund Balance, June 30 $ 20,762,422 $ 32,970,104 $ (1,217,034) $ (34,187,138) CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE TRANSPORTATION YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges Transfers out Total Charges to Appropriations Budget Amounts Original Final $ 1,532,068 $ 1,519,482 Variance with Final Budget Actual Positive Amounts (Negative) $ 1,519,482 $ - 7,700 7,700 15,586 7,886 674,000 674,000 1,394,601 720,601 - - 2,621,437 2,621,437 2,213,768 2,201,182 5,551,106 3,349,924 35,195 35,195 - 35,195 91,160 615,158 1,787,715 (1,172,557) 126,355 650,353 1,787,715 (1,137,362) Budgetary Fund Balance, June 30 $ 2,087,413 $ 1,550,829 $ 3,763,391 $ 2,212,562 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ (1,086,122) $ (469,486) Actual Amounts $ (469,486) Variance with Final Budget Positive (Negative) - - 65 65 560,000 560,000 610,854 50,854 (526,122) 90,514 141,433 50,919 3,500 3,500 908 2,592 3,500 3,500 908 2,592 $ (529,622) $ 87,014 $ 140,525 $ 53,511 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE CIVIC CENTER YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Debt service: Interest and fiscal charges Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (7,323,569) $ (7,312,490) $ (7,312,490) $ - 183,600 183,600 290,145 106,545 (7,139,969) (7,128,890) (7,022,345) 106,545 201,400 201,400 201,400 91,000 91,000 35,723 55,277 292,400 292,400 237,123 55,277 Budgetary Fund Balance, June 30 $ (7,432,369) $ (7,421,290) $ (7,259,468) $ 161,822 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE LIBRARY DEVELOPMENT YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges Total Charges to Appropriations Budget Original $ (1,838,208) Amounts Actual Final Amounts $ (1,750,152) $ (1,750,152) Variance with Final Budget Positive (Negative) 94,100 94,100 103,949 9,849 (1,744,108) (1,656,052) (1,646,203) 9,849 7,200 7,200 8,576 (1,376) 7,200 7,200 8,576 (1,376) Budgetary Fund Balance, June 30 $ (1,751,308) $ (1,663,252) $ (1,654,779) $ 8,473 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE STREET FACILITY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Developer participation Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges Total Charges to Appropriations Variance with Budgetary Fund Balance, June 30 $ (1,996,772) $ (1,949,191) $ (1,907,295) $ 41,896 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (2,014,572) $ (1,966,991) $ (1,966,991) $ - 17,800 17,800 57,551 39,751 10,000 10,000 11,902 1,902 (1,986,772) (1,939,191) (1,897,538) 41,653 10,000 10,000 9,757 243 10,000 10,000 9,757 243 Budgetary Fund Balance, June 30 $ (1,996,772) $ (1,949,191) $ (1,907,295) $ 41,896 CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE PARK FACILITY YEAR ENDED JUNE 30, 2015 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Developer participation Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Original Amounts Actual Final Amounts Variance with Final Budget Positive (Negative) - - 7 7 11,000 11,000 11,898 898 11,000 11,000 11,905 905 10,000 10,000 11,902 (1,902) 10,000 10,000 11,902 (1,902) $ 1,000 $ 1,000 $ 3 $ (997) CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FINANCING AUTHORITY YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,534 $ (867) $ (867) $ - Resources (Inflows): Charges for services 5,000 5,000 - (5,000) Use of money and property 673,400 673,400 673,048 (352) Transfers in - - 5,371 5,371 Amounts Available for Appropriations 679,934 677,533 677,552 19 Charges to Appropriation (Outflow): General government 5,000 5,000 4,506 494 Debt service: Principal retirement 495,000 495,000 525,000 (30,000) Interest and fiscal charges 176,400 176,400 148,046 28,354 Total Charges to Appropriations 676,400 676,400 677,552 (1,152) Budgetary Fund Balance, June 30 $ 3,534 $ 1,133 $ - $ (1,133) CITY OF LA QUINTA BUDGETARY COMPARISON SCHEDULE FINANCING AUTHORITY YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,534 $ (867) $ (867) $ - Resources (Inflows): Charges for services 5,000 5,000 - (5,000) Use of money and property 673,400 673,400 673,048 (352) Transfers in - - 5,371 5,371 Amounts Available for Appropriations 679,934 677,533 677,552 19 Charges to Appropriation (Outflow): General government 5,000 5,000 4,506 494 Debt service: Principal retirement 495,000 495,000 525,000 (30,000) Interest and fiscal charges 176,400 176,400 148,046 28,354 Total Charges to Appropriations 676,400 676,400 677,552 (1,152) Budgetary Fund Balance, June 30 $ 3,534 $ 1,133 $ - $ (1,133) THIS PAGE INTENTIONALLY LEFT BLANK INTERNAL SERVICE FUNDS Internal service funds are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The City of La Quinta has the following Internal Service Funds: Equipment Replacement Fund — used to account for the ultimate replacement of City owned and operated vehicles and equipment Information Technology Fund — used to account for the purchase and replacement of information systems. Park Equipment and Facilities Fund — used to account for the purchase and replacement of City owned park facility infrastructure. CITY OF LA QUINTA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2015 Noncurrent: Capital assets - net of accumulated depreciation 529,259 531,730 14,558,677 15,619,666 Total Noncurrent Assets 529,259 531,730 14,558,677 15,619,666 Total Assets $ 3,284,530 $ 1,298,785 $ 16,692,431 $ 21,275,746 Liabilities and Net Position: Liabilities: Current: Accounts payable Current portion of capital leases Total Current Liabilities Noncurrent: Long-term portion of capital leases Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position $ 11,602 $ 25,909 $ 11,602 47,008 28,203 $ 37,511 21,099 58,610 28,203 - Governmental Activities - Internal Service Funds 28,203 11,602 75,211 - Park Equipment Information Equipment 15,570,364 Replacement Technology and Facilities Totals Assets: 1,223, 574 16,692,431 21,188,933 Current: Cash and investments $ 2,752,306 $ 766,200 $ 2,131,473 $ 5,649,979 Receivables: Accrued interest 2,965 855 2,281 6,101 Total Current Assets 2,755,271 767,055 2,133,754 5,656,080 Noncurrent: Capital assets - net of accumulated depreciation 529,259 531,730 14,558,677 15,619,666 Total Noncurrent Assets 529,259 531,730 14,558,677 15,619,666 Total Assets $ 3,284,530 $ 1,298,785 $ 16,692,431 $ 21,275,746 Liabilities and Net Position: Liabilities: Current: Accounts payable Current portion of capital leases Total Current Liabilities Noncurrent: Long-term portion of capital leases Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position $ 11,602 $ 25,909 $ 11,602 47,008 28,203 $ 37,511 21,099 58,610 28,203 - 28,203 - 28,203 11,602 75,211 - 86,813 529,259 482,428 14,558,677 15,570,364 2,743,669 741,146 2,133,754 5,618,569 3,272,928 1,223, 574 16,692,431 21,188,933 Total Liabilities and Net Position $ 3,284,530 $ 1,298,785 $ 16,692,431 $ 21,275,746 CITY OF LA QUINTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Governmental Activities - Internal Service Funds Park Equipment Information Equipment and Replacement Technology Facilities Totals Operating Revenues: Sales and service charges $ 596,393 $ 651,384 $ 502,523 $ 1,750,300 Total Operating Revenues 596,393 651,384 502,523 1,750,300 Operating Expenses: Administration and general - 138,322 - 138,322 Fuel and oil 75,032 - - 75,032 Maintenance and parts 136,597 - - 136,597 Contract services 4,587 196,277 - 200,864 Software and supplies - 226,967 - 226,967 Depreciation expense 110,421 136,640 526,123 773,184 Total Operating Expenses 326,637 698,206 526,123 1,550,966 Operating Income (Loss) 269,756 (46,822) (23,600) 199,334 Nonoperating Revenues (Expenses): Interest revenue 14,907 4,086 11,393 30,386 Interest expense - (2,839) - (2,839) Gain on disposal of capital assets 6,048 - - 6,048 Total Nonoperating Revenues (Expenses) 20,955 1,247 11,393 33,595 Income (Loss) Before Transfers 290,711 (45,575) (12,207) 232,929 Transfers in 37,644 - - 37,644 Changes in Net Position 328,355 (45,575) (12,207) 270,573 Net Position: Beginning of Year 2,944,573 1,269,149 16,704,638 20,918,360 End of Fiscal Year $ 3,272,928 $ 1,223,574 $ 16,692,431 $ 21,188,933 CITY OF LA QUINTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Cash Flows from Operating Activities: Cash received from/(paid to) interfund service provided Cash paid to suppliers for goods and services Cash paid to employees for services Net Cash Provided (Used for) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers in Net Cash Provided by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Interest paid on capital debt Capital lease payment Proceeds from sales of capital assets Net Cash Used for Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used for) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in salaries and benefits payable Total Adjustments Net Cash Provided (Used) by Operating Activities Non -Cash Investing, Capital, and Financing Activities: There were no non-cash transactions in the current year. Governmental Activities - Internal Service Funds Park Equipment Information Equipment Replacement Technology and Facilities Totals $ 596,393 $ 651,384 $ 502,523 $ 1,750,300 (216,699) (522,453) (12,539) (751,691) - (151,145) - (151,145) 379,694 (22,214) 489,984 847,464 37,644 - - 37,644 37,644 - - 37,644 (97,712) (64,510) - (162,222) (2,839) - (2,839) - (20,634) - (20,634) 6,048 2,397 - 8,445 (91,664) (85,586) - (177,250) 14,725 4,270 10,934 29,929 14,725 4,270 10,934 29,929 340,399 (103,530) 500,918 737,787 2,411,907 869,730 1,630,555 4,912,192 $ 2,752,306 $ 766,200 $ 2,131,473 $ 5,649,979 $ 269,756 $ (46,822) $ (23,600) $ 199,334 110,421 136,640 526,123 773,184 (483) (94,506) (12,539) (107,528) - (4,703) - (4,703) - (12,823) - (12,823) 109,938 24,608 513,584 648,130 $ 379,694 $ (22,214) $ 489,984 $ 847,464 AGENCYFUNDS Agency funds are used to account for assets held by the City as an agent for individual, private organizations and other governmental units. The agency funds and their purposes are as follows: The City of La Quinta has the following agency funds: Assessment District No. 97-1 and 2001-1 — To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. CITY OF LA QUINTA COMBINING STATEMENT OF NET POSITION ALL AGENCY FUNDS JUNE 30, 2015 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Assessment District Assessment District No. 97-1 No. 2001-1 Totals $ 155,499 $ 137,239 $ 292,738 1,419 3,605 5,024 160 - 160 $ 157,078 $ 140,844 $ 297,922 $ 157,078 $ 140,844 $ 297,922 $ 157,078 $ 140,844 $ 297,922 CITY OF LA QUINTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2015 Assessment District No. 97-1 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Assessment District No. 2001-1 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Totals - All Aaencv Funds Assets: Pooled cash and investments Receivables: Taxes Accrued interest Total Assets Liabilities: Deposits payable Total Liabilities Balance Balance 7/1/2014 Additions Deductions 6/30/2015 $ 145,461 $ 58,702 $ 48,664 $ 155,499 1,216 1,419 1,216 1,419 157 318 315 160 $ 146,834 $ 60,439 $ 50,195 $ 157,078 $ 146,834 $ 62,802 $ 52,558 $ 157,078 $ 146,834 $ 62,802 $ 52,558 $ 157,078 $ 119,464 $ 17,934 $ 159 $ 137,239 17,326 3,605 17,326 3,605 137 137 274 - $ 136,927 $ 21,676 $ 17,759 $ 140,844 $ 136,927 $ 21,265 $ 17,348 $ 140,844 $ 136,927 $ 21,265 $ 17,348 $ 140,844 $ 264,925 $ 76,636 $ 48,823 $ 292,738 18,542 5,024 18,542 5,024 294 455 589 160 $ 283,761 $ 82,115 $ 67,954 $ 297,922 $ 283,761 $ 84,067 $ 69,906 $ 297,922 $ 283,761 $ 84,067 $ 69,906 $ 297,922 THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL SECTION This part of the City of La Quinta's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Financial Trends Page These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. 128 Revenue Capacity These schedules obtain information to help the reader assess the government's most significant local revenue source, property taxes. 141 Debt Capacity These schedules present information to help the reader assess the ability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. 146 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities that take place. 153 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 156 Governmental activities: Net investment in capital assets Restricted Unrestricted Total governmental activities Net Position Business -type activities: Net investment in capital assets Restricted Unrestricted Total business -type activities Net Position Primary government: Net investment in capital assets Restricted Unrestricted Total primary government Net Position Source: City of La Quinta CITY OF LA QUINTA Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2006 2007 2008 2009 2010 $ 253,559,117 $ 300,220,033 $ 343,019,328 $ 323,669,955 $ 336,459,272 65,159,623 49,277,895 86,041,189 105,297,168 96,332,870 86,129,376 106,939,577 79,642,102 96,654,981 77,187,433 $ 404,848,116 $ 456,437,505 $ 508,702,619 $ 525,622,104 $ 509,979,575 $ 42,075,172 $ 42,692,025 $ 42,778,015 $ 42,536,608 $ 42,879,482 (1,665,646) (2,385,462) (3,109,524) (3,937,454) (4,863,848) $ 40,409,526 $ 40,306,563 $ 39,668,491 $ 38,599,154 $ 38,015,634 $ 295,634,289 $ 342,912,058 $ 385,797,343 $ 366,206,563 $ 379,338,754 65,159,623 49,277,895 86,041,189 105,297,168 96,332,870 84,463,730 104,554,115 76,532,578 92,717,527 72,323,585 $ 445,257,642 $ 496,744,068 $ 548,371,110 $ 564,221,258 $ 547,995,209 TABLE 1 2011 2012 2013 2014 2015 $ 276,787,752 $ 534,388,479 $ 529,681,342 $ 527,614,666 $ 523,495,389 107,042,126 26,585,382 49,598,397 53,669,248 62,472,221 97,009,428 89,832,811 83,399,745 83,907,046 74,362,189 $ 480,839,306 $ 650,806,672 $ 662,679,484 $ 665,190,960 $ 660,329,799 $ 42,491,051 $ 42,105,683 $ 41,741,443 $ 41,354,565 $ 44,118,111 (4,918,951) (4,745,892) (4,750,604) (4,674,666) (4,892,647) $ 37,572,100 $ 37,359,791 $ 36,990,839 $ 36,679,899 $ 39,225,464 $ 319,278,803 $ 576,494,162 $ 571,422,785 $ 568,969,231 $ 567,613,500 107,042,126 26,585,382 49,598,397 53,669,248 62,472,221 92,090,477 85,086,919 78,649,141 79,232,380 69,469,542 $ 518,411,406 $ 688,166,463 $ 699,670,323 $ 701,870,859 $ 699,555,263 CITY OF LA QUINTA Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Expenses: Governmental activities: General government Public safety Planning and development Community services Public works Contribution to other agencies Interest on long-term debt Total governmental activities expenses Business -type activities: Golf Course Total business -type activities expenses Total primary government expenses Program revenues: Governmental activities: Charges for services: General government Public safety Planning and development Community services Public works Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Golf Course Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net revenues (expenses): Governmental activities Business -type activities Total net revenues (expenses) General revenues and other changes in Net Position: Governmental activities: Taxes: Property taxes Tax increment Transient occupancy taxes Sales tax Franchise taxes Business license taxes Othertaxes Motor vehicle in lieu, unrestricted Investment income Gain (loss) on sale of capital assets Miscellaneous Extraordinary gain/loss on dissolution of RDA Transfers Total governmental activities Business -type activities: Investment income Gain (loss) on sale of capital assets Miscellaneous Transfers Total business -type activities Total primary government Changes in Net Position Governmental activities Business -type activities Total primary government ' The transfer was for land & golf course improvements transferred to the Enterprise Fund. Source: City of La Quinta Fiscal Year 2006 2007 2008 2009 2010 $ 4,229,871 $ 6,284,342 $ 6,953,073 $ 7,836,146 $ 34,287,068 9,065,244 12,724,100 13,472,036 19,736,941 21,274,519 5,906,915 7,736,520 35,323,858 7,317,689 5,173,326 1,426,033 4,299,453 5,797,116 14,808,850 15,923,380 10,006,335 10,511,874 11,097,526 11,100,833 12,326,726 15,494,656 15,163,422 15,522,441 15,631,438 15,330,603 46,129,054 56,719,711 88,166,050 76,431,897 104,315,622 4,523,146 4,520,173 4,761,581 4,440,546 4,169,768 4,523,146 4,520,173 4,761,581 4,440,546 4,169,768 50,652,200 61,239,884 92,927,631 80,872,443 108,485,390 (1,137,203) ' (874,645) 717,849 60,530 8,328 25,053 21,439 4,168,206 2,659,515 2,050,492 1,373,952 1,100,491 1,873,676 169,643 134,211 138,391 69,391 428,947 387,065 374,092 275,178 250,557 3,021,379 2,244,156 1,900,437 1,308,702 1,124,647 3,603,173 3,796,495 5,905,664 10,725,280 15,363,650 33,918,901 17,601,131 50,090,419 10,647,270 5,974,311 47,732,131 26,918,535 60,463,643 24,493,826 23,904,486 $ 67,440,141 $ 50,786,397 $ 51,627,042 $ 15,850,148 3,120,728 3,540,748 3,814,233 3,368,135 3,584,996 352,687 3,120,728 3,540,748 4,166,920 3,368,135 3,584,996 50,852,859 30,459,283 64,630,563 27,861,961 27,489,482 1,603,077 (29,801,176) (27,702,407) (51,938,071) (80,411,136) (1,402,418) (979,425) (594,661) (1,072,411) (584,772) 200,659 (30,780,601) (28,297,068) (53,010,482) (80,995,908) 3,679,079 4,999,051 6,014,305 6,653,583 6,278,470 35,168,329 42,583,031 42,114,893 36,702,197 35,390,317 5,437,238 5,448,361 5,327,203 4,480,467 4,265,438 7,613,075 8,896,716 8,492,213 7,279,513 6,927,388 1,044,470 1,259,985 1,748,082 1,533,249 1,585,427 276,917 307,032 317,011 285,304 302,223 1,049,701 872,753 641,705 455,089 461,957 2,740,233 3,291,055 3,803,647 3,940,801 3,714,437 6,319,502 11,854,951 10,230,489 7,387,244 5,362,684 1,967,292 - 57,346 21,542 2,330 1,943,093 2,052,246 1,220,627 118,567 477,936 (1,137,203) ' (874,645) 66,101,726 80,690,536 79,967,521 68,857,556 64,768,607 553 1,817 4,310 3,074 1,252 - - (47,721) - - 1,137,203 ' 874,645 1,137,756 876,462 (43,411) 3,074 1,252 67,239,482 81,566,998 79,924,110 68,860,630 64,769,859 67,704,803 50,889,360 52,265,114 16,919,485 (15,642,529) (264,662) (102,963) (638,072) (1,069,337) (583,520) $ 67,440,141 $ 50,786,397 $ 51,627,042 $ 15,850,148 $ (16,226,049) TABLE 2 2011 2012 2013 2014 2015 $ 11,283,358 $ 6,183,712 $ 4,511,023 $ 4,830,239 $ 5,166,732 21,070,458 20,815,454 21,047,691 21,169,423 21,636,149 18,715,283 6,378,352 2,274,541 3,098,015 2,212,013 4,735,964 5,093,402 4,986,104 4,130,085 5,992,362 10, 757, 279 13, 288, 521 11, 803,133 12, 610, 994 18,116, 732 31,324,064 - - - - 14,353,359 3,021,496 447,048 405,977 340,716 112,239,765 54,780,937 45,069,540 46,244,733 53,464,704 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360 116,442,039 58,866,219 49,278,395 51,216,710 58,518,064 47,696 86,869 38,812 71,042 121,140 1,044,399 1,020,822 927,604 1,412,819 1,655,421 74,471 68,470 112,695 595,980 489,589 210,151 247,397 245,392 1,224,719 307,869 1,086,771 1,080,744 1,209,438 1,195, 703 1,197, 069 13,152,942 11,289,673 28,068,940 14,587,153 16,829,107 3,157,828 9,990,793 4,115,238 3,981,286 3,536,444 18,774,258 23,784,768 34,718,119 23,068,702 24,136,639 3,756,615 3,871,898 3,736,879 3,481,424 3,561,857 2,872,122 3,756,615 3,871,898 3,736,879 3,481,424 6,433,979 22,530,873 27,656,666 38,454,998 26,550,125 30,570,618 (93,465,507) (30,996,169) (10,351,421) (23,176,031) (29,328,065) (445,659) (213,384) (471,976} (1,490,553) 1,380,619 (93,911,166) (31,209,553) (10,823,397) (24,666,584) (27,947,446) 5,942,353 21,370,476 7,043,604 9,193,753 8,776,491 32,569,795 - - - - 4,737,968 5,446,883 7,833,545 6,307,737 6,637,183 7,323,835 7,713,741 5,980,684 8,786,819 8,873,008 1,607,829 1,687,440 1,669,476 1,688,263 1,861,453 285,270 293,592 292,966 307,654 306,087 437,235 428,963 518,778 580,834 530,336 3,515,395 3,173,826 3,157,330 3,291,042 3,486,367 4,693,974 1,925,255 1,605,718 2,190,357 1,981,343 - - 28,551 - - 3,211,584 268,644 192,509 243,498 296,346 - 158,654,715 (2,189,984) (6,402,450) - (500,000) (247,739) 64,325,238 200,963,535 26,133,177 25,687,507 32,500,875 2,125 1,075 2,225 1,567 2,043 - - 100,799 678,046 915,164 - 500,000 247,739 2,125 1,075 103,024 1,179,613 1,164,946 64,327,363 200,964,610 26,236,201 26,867,120 33,665,821 (29,140,269) 169,967,366 15,781,756 2,511,476 3,172,810 (443,534) (212,309) (368,952) (310,940) 2,545,565 $ (29 583 803) $ 169,755,057 $ 15,412,804 $ 2,200,536 $ 5,718,375 Source: City of La Quinta CITY OF LA QUINTA Changes in Net Position - Governmental Activities Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2006 2007 2008 2009 2010 Expenses: General government $ 4,229,871 $ 6,284,342 $ 6,953,073 $ 7,836,146 $ 34,287,068 Public safety 9,065,244 12,724,100 13,472,036 19,736,941 21,274,519 Planning and development 5,906,915 7,736,520 35,323,858 7,317,689 5,173,326 Community services 1,426,033 4,299,453 5,797,116 14,808,850 15,923,380 Public works 10,006,335 10,511,874 11,097,526 11,100,833 12,326,726 Contribution to other agencies - - - - - Interest on long-term debt 15,494,656 15,163,422 15,522,441 15,631,438 15,330,603 Total governmental activities expenses 46,129,054 56,719,711 88,166,050 76,431,897 104,315,622 Program revenues: Charges for services: General government 717,849 60,530 8,328 25,053 21,439 Public safety 4,168,206 2,659,515 2,050,492 1,373,952 1,100,491 Planning and development 1,873,676 169,643 134,211 138,391 69,391 Community services 428,947 387,065 374,092 275,178 250,557 Public works 3,021,379 2,244,156 1,900,437 1,308,702 1,124,647 Operating grants and contributions 3,603,173 3,796,495 5,905,664 10,725,280 15,363,650 Capital grants and contributions 33,918,901 17,601,131 50,090,419 10,647,270 5,974,311 Total governmental activities program revenues 47,732,131 26,918,535 60,463,643 24,493,826 23,904,486 Net program revenues (expenses) 1,603,077 (29,801,176) (27,702,407) (51,938,071) (80,411,136) General revenues and other changes in net position: Taxes: Property taxes 3,679,079 4,999,051 6,014,305 6,653,583 6,278,470 Tax increment 35,168,329 42,583,031 42,114,893 36,702,197 35,390,317 Transient occupancy taxes 5,437,238 5,448,361 5,327,203 4,480,467 4,265,438 Sales tax 7,613,075 8,896,716 8,492,213 7,279,513 6,927,388 Franchise tax 1,044,470 1,259,985 1,748,082 1,533,249 1,585,427 Business license taxes 276,917 307,032 317,011 285,304 302,223 Othertax 1,049,701 872,753 641,705 455,089 461,957 Motor vehicle in lieu, unrestricted 2,740,233 3,291,055 3,803,647 3,940,801 3,714,437 Investment income 6,319,502 11,854,951 10,230,489 7,387,244 5,362,684 Miscellaneous 1,943,093 2,052,246 1,220,627 118,567 477,936 Gain (loss) on sale of capital assets 1,967,292 - 57,346 21,542 2,330 Extraordinary gain/loss on dissolution of RDA - - - - - Transfers (1,137,203) (874,645) - - - Total governmental activities 66,101,726 80,690,536 79,967,521 68,857,556 64,768,607 Changes in net position - governmental activities $ 67,704,803 $ 50,889,360 $ 52,265,114 $ 16,919,485 $ (15,642,529) Source: City of La Quinta Table 3 2011 2012 2013 2014 2015 $ 11,283,358 $ 6,183,712 $ 4,511,023 $ 4,830,239 $ 5,166,732 21,070,458 20,815,454 21,047,691 21,169,423 21,636,149 18,715,283 6,378,352 2,274,541 3,098,015 2,212,013 4,735,964 5,093,402 4,986,104 4,130,085 5,992,362 10,757,279 13,288,521 11,803,133 12,610,994 18,116,732 31,324,064 - - - - 14,353,359 3,021,496 447,048 405,977 340,716 112,239,765 54,780,937 45,069,540 46,244,733 53,464,704 47,696 86,869 38,812 71,042 121,140 1,044,399 1,020,822 927,604 1,412,819 1,655,421 74,471 68,470 112,695 595,980 489,589 210,151 247,397 245,392 1,224,719 307,869 1,086,771 1,080,744 1,209,438 1,195,703 1,197,069 13,152,942 11,289,673 28,068,940 14,587,153 16,829,107 3,157,828 9,990,793 4,115,238 3,981,286 3,536,444 18,774,258 23,784,768 34,718,119 23,068,702 24,136,639 (93,465,507) (30,996,169) (10,351,421) (23,176,031) (29,328,065) 5,942,353 21,370,476 7,043,604 9,193,753 8,776,491 32,569,795 - - - - 4,737,968 5,446,883 5,980,684 6,307,737 6,637,183 7,323,835 7,713,741 7,833,545 8,786,819 8,873,008 1,607,829 1,687,440 1,669,476 1,688,263 1,861,453 285,270 293,592 292,966 307,654 306,087 437,235 428,963 518,778 580,834 530,336 3,515,395 3,173,826 3,157,330 3,291,042 3,486,367 4,693,974 1,925,255 1,605,718 2,190,357 1,981,343 3,211,584 268,644 192,509 243,498 296,346 - - 28,551 - - - 158,654,715 (2,189,984) (6,402,450) - - - (500,000) (247,739) 64,325,238 200,963,535 26,133,177 25,687,507 32,500,875 $_(2%_1 40,269) $ 169,967,366 $ 15,781,756 $ 2,511,476 $ 3,172,810 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF LA QUINTA TABLE 4 Changes in Net Position - Business -type Activities Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expenses: Golf Course $ 4,523,146 $ 4,520,173 $ 4,761,581 $ 4,440,546 $ 4,169,768 $ 4,202,274 $ 4,085,282 $ 4,208,855 $ 4,971,977 $ 5,053,360 Total business -type activities expenses 4,523,146 4,520,173 4,761,581 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360 Program revenues: Charges for services: Golf Course 3,120,728 3,540,748 3,814,233 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 3,561,857 Capital grants and contributions - - 352,687 - - - - - - 2,872,122 Total business -type activities program revenues 3,120,728 3,540,748 4,166,920 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 6,433,979 Net revenues (expenses) (1,402,418) (979,425) (594,661) (1,072,411) (584,772) (445,659) (213,384) (471,976) (4,971,977) 1,380,619 General revenues and other changes in Net Position: Investment income 553 1,817 4,310 3,074 1,252 2,125 1,075 2,225 1,567 2,043 Gain (loss) on sale of capital assets - - (47,721) - - - - - - - Insurance Recoveries - - - - - - - 100,799 - 915,164 Miscellaneous - - - - - - - - 678,046 - Transfers 164,190 874,645 - - - - - - 500,000 247,739 Capital contributions 973,013 979,425 Total business -type activities 1,137,756 1,855,887 (43,411) 3,074 1,252 2,125 1,075 103,024 1,179,613 1,164,946 $ (264,662) $ 876,462 $ (638,072) $ (1,069,337) $ (583,520) $ (443,534) $ (212,309) $ (368,952) $ (3,792,364) $ 2,545,565 Changes in Net Position - business -type activities Source: City of La Quinta CITY OF LA QUINTA Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year ' In Fiscal Year 2009-2010, the City implemented GASB 54 which changed the reporting requirements for fund balances in the financial statements. This table has been updated to reflect the impact of GASB 54 not only for Fiscal Year 2009-10 but for all prior years. Source: City of La Quinta 2006 2007 2008 2009 2010 General fund: Nonspendable: Prepaid costs $ 503,642 $ 11,774 $ 10,601 $ 12,424 $ 9,030 Land held for resale - - - - - Advances to other funds 22,700,961 27,597,329 45,264,966 46,137,692 57,897,671 Deposits 5,903 - 4,825 9,830 9,830 Due from Other Governments - - - - - Restricted for: Debt service - - - - - Committed: Emergency reserve 16,905,386 18,722,524 19,651,824 18,201,948 17,774,648 Post retirement health benefits - - - - 1,258,059 Capital Projects 10,877,058 482,718 2,100,000 2,144,085 - Working capital reserve - - - - - Carryovers - - - - - Educational purposes 750,000 500,000 250,000 - - Economic development 4,967,072 2,327,430 1,911,131 - - Assigned: Continuing appropriations 1,319,787 2,257,200 2,835,297 3,485,747 1,555,176 Insurance - - - - - Unassigned 18,239,315 32,741,545 20,423,375 22,335,655 13,525,704 Total general fund $ 76,269,124 $ 84,640,520 $ 92,452,019 $ 92,327,381 $ 92,030,118 All other governmental funds: Nonspendable: Prepaid costs $ 7,987 $ 7,977 $ 5,353 $ 19,197 $ 7,740 Notes and loans 2,112,597 2,081,645 2,076,063 2,067,028 2,088,709 Advances to other funds 5,365,097 4,823,543 4,402,213 4,321,119 4,293,166 Deposits - - - 4,540 6,400 Restricted: Planning and development projectE 26,172,191 15,297,481 21,906,749 25,807,752 31,032,124 Public safety 143,846 153,818 198,843 245,468 48,852 Community services 9,696,885 12,214,375 11,406,628 11,387,631 11,675,417 Public works 462,171 104,878 309,566 7,539,181 448,731 Capital Projects 92,112,917 66,225,066 69,626,275 50,556,856 53,123,856 Debt service 10,288,494 24,309,220 5,094,635 5,490,098 3,890 Assigned: Continuing appropriations - - - 2,000 - Unassigned (7,133,230) (7,854,868) (19,653,179) (19,339,823) (33,626,907) Total all other governmental funds $ 139,228,955 $ 117,363,135 $ 95,373,146 $ 88,101,047 $ 69,101,978 ' In Fiscal Year 2009-2010, the City implemented GASB 54 which changed the reporting requirements for fund balances in the financial statements. This table has been updated to reflect the impact of GASB 54 not only for Fiscal Year 2009-10 but for all prior years. Source: City of La Quinta TABLE 5 2011 2012 2013 2014 2015 $ 23,260 $ 27,481 $ 11,786 $ 1,500 $ 15,653 8,320,000 8,320,000 8,320,000 8,320,000 8,320,000 15,373,104 15,417,929 15,509,691 15,163,183 14,943,098 9,967 118,516 4,830 4,830 33,985 - - 41,378,966 34,976,516 26,715,575 169,631 173,426 - - - 18, 018, 595 17, 516, 295 16, 034, 995 16, 034, 995 15, 372, 600 1,258,059 1,523,401 1,523,401 1,523,401 1,523,401 - - 2,848,737 1,507,429 1,727,390 - - 2,836,820 3,843,150 - - - 356,438 476,400 1,768,494 1,041,172 1,013,533 - - - - - 209,000 - 48,140,444 47,737,861 5,926,651 10,699,641 13,837,312 $ 93,081,554 $ 91,876,081 $ 92,572,590 $ 91,633,753 $ 86,808,564 $ 10,563 $ 12,875 $ 10,310 $ - $ - 2,081,614 2,065,611 2,062,589 - 4,569,188 - - - - 6,000 13,600 13,600 - - 34,018,930 10,767,199 3,730,533 5,970,006 13,108,499 96,364 245,187 258,968 274,274 301,843 10,248,314 11,162,057 11,626,441 12,459,516 10,711,704 396,355 145,823 262,754 1,571,163 1,129,697 58,111,106 4,089,156 1,392,581 1,590,168 3,873,699 4,001,426 2,534 2,234 - - (13,250,398) (13,248,593) (13,179,196) (12,370,462) (12,703,744) $ 100,289,462 $ 15,255,449 $ 6,180,814 $ 9,494,665 $ 16,421,698 Revenues: Taxes Assessments Licenses and permits Intergovernmental Charges for services Use of money and property Contributions Developer participation Miscellaneous Total revenues Expenditures Current: General government Public safety Planning and development Community services Public works Capital projects Debt service: Principal retirement Interest and fiscal charges Payment to bond escrow Payments under pass-through obligations Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Issuance of tax allocation bonds Issuance of revenue bonds Transfers in Transfers out Other debts issued Capital leases Proceeds from sale of capital assets Total other financing sources (uses) Extraordinary gain/loss on dissolution of redevelopment agency Net change in fund balances Debt service as a percentage of noncapital expenditures"' CITY OF LA QUINTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2006 2007 2008 2009 2010 $ 89,704,947 $ 100,103,324 $ 105,870,933 $ 99,816,072 $ 93,831,918 818,526 877,191 909,229 927,816 966,639 5,145,430 2,788,882 2,107,035 871,167 472,409 18,585,468 14,803,971 15,382,135 18,679,355 19,473,076 3,367,989 1,821,794 1,334,060 673,779 484,043 12,671,662 14,804,348 12,874,926 7,043,646 5,338,679 - - 37,643,190 240,591 395,823 12,473,440 5,310,440 6,537,991 2,243,785 273,739 637,054 412,353 629,471 720,185 608,342 143,404,516 140,922,303 183,288,970 131,216,396 121,844,668 4,644,954 6,150,699 7,367,144 7,230,436 30,220,882 13,029,187 15,685,493 17,181,775 18,946,866 20,116,936 5,847,563 28,994,177 15,374,160 7,261,835 6,028,492 1,248,308 4,027,302 5,336,757 4,698,985 4,204,626 6,987,014 6,755,507 6,563,494 6,324,055 6,862,887 25,445,550 36,420,417 82,883,317 32,363,859 14,514,910 4,777,748 5,647,940 5,949,311 6,319,580 6,616,412 15, 554, 612 15, 059, 977 15,424, 708 15, 348, 598 15, 357, 968 35,958,291 36,498,575 42,989,023 42,426,670 38,710,894 113, 493, 227 155, 240, 087 199, 069, 689 140, 920, 884 142, 634, 007 29,911,289 (14,317,784) (15,780,719) (9,704,488) (20,789,339) 35,828,335 60,954,576 88,604,682 40,502,929 30,386,372 (35,992,525) (60,954,576) (87,342,608) (40,527,930) (28,893,365) - - - 2,332,752 - - - 182,094 - - 8,209,396 124,097 158,061 - - 8,045,206 124,097 1,602,229 2,307,751 1,493,007 $ 37,956,495 $ (14,193,687) $ (14,178,490) L (7,396,737) $ (19,296,332) 65.5% 61.0% 47.1% 59.0% 47.6% (a) The capitalizable expenditures were derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds. Source: City of La Quinta TABLE 6 2011 2012 2013 2014 2015 $ 88,498,457 $ 53,632,023 $ 23,506,679 $ 27,192,089 $ 26,678,471 956,048 950,292 954,058 951,181 940,221 547,071 482,831 566,510 953,540 1,356,978 19, 005,643 15, 875, 582 15,464,942 16,506,666 15,702, 943 501,418 635,111 625,813 1,238,277 1,341,438 4,670,732 1,914,518 1,582,762 2,175,048 1,950,957 327,751 303,773 18,377,253 838,972 1,956,452 945,805 903,144 1,226,825 3,059,254 2,803,681 319,763 276,327 491,267 575,001 580,843 115,772,688 74,973,601 62,796,109 53,490,028 53,311,984 10,885,519 4,881,922 4,587,888 4,068,827 5,050,425 19,826,372 19,669,517 20,168,038 21,189,086 21,664,472 8,460,420 4,314,646 27,514,768 1,748,477 2,097,525 4,147,758 4,086,686 4,411,536 4,011,432 4,798,123 4,808,060 6,192,733 5,067,370 4,617,050 5,283,309 21,287,775 13,335,989 8,622,783 7,974,747 11,097,186 7,011,261 7,066,726 556,871 558,019 594,383 15,037,919 6,701,079 437,678 411,010 348,334 35,607,089 16,755,441 - - - 127,072,173 83,004,739 71,366,932 44,578,648 50,933,757 (11,299,485) (8,031,138) (8,570,823) 8,911,380 2,378,227 6,000,000 - - - - 28,850,000 - - - - 61,657,034 12,554,752 29,841,053 4,201,763 12,037,331 (61,652,479) (12,580,120) (29,841,053) (4,335,679) (12,322,714) - - 71,045 - 9,000 8,683,850 875,275 121,652 - - 43,538,405 849,907 192,697 (133,916) (276,383) - (79,058,255) - (6,402,450) - $ 32,238,920 $ (86,239,486) $(8,378,126) $ 2,375,014 $ 2,101,844 53.0% 43.7% 1.6% 3.0% 2.2% THIS PAGE INTENTIONALLY LEFT BLANK NOTES: Note 1: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re -assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Note 2: Includes dry farm, government owned, institutional, irrigated, recreational, vacant, cross reference and unknown. CITY OF LA QUINTA Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in dollars) Entire City (including Redevelopment Agency) TABLE 7 Fiscal Year Taxable Ended Other Unsecured Less Tax- Exempt Assessed Direct June 30 Residential Commercial Industrial (Note 2) Property Property Value Rate 2006 $6,427,108,159 $ 404,672,261 $ 19,229,049 $ 1,005,373,906 $ 72,554,357 $ (115,071,146) $ 7,813,866,586 0.9992 2007 8,047,222,562 622,347,465 19,605,470 1,296,976,028 88,740,840 (99,245,721) 9,975,646,644 0.9992 2008 9,514,081,076 789,425,538 20,028,196 1,531,134,827 101,433,002 (89,688,505) 11,866,414,134 0.9992 2009 10,034,763,263 827,032,029 20,432,889 1,528,398,712 113,185,065 (107,777,195) 12,416,034,763 1.0000 2010 9,483,530,068 823,821,531 20,845,624 1,414,468,679 121,272,880 (110,752,890) 11,753,185,892 1.0000 2011 8,870,471,785 771,419,124 20,792,716 1,250,399,544 118,972,704 (161,265,140) 10,870,790,733 1.0000 2012 8,612,579,049 725,788,432 20,944,939 1,041,585,372 107,421,771 (176,887,605) 10,331,431,958 1.0000 2013 8,510,574,371 735,622,855 19,644,835 1,079,529,412 108,971,608 (179,344,969) 10,274,998,112 1.0000 2014 8,959,562,854 743,340,208 20,374,889 1,072,744,515 111,330,270 (180,600,133) 10,726,752,603 1.0000 2015 9,610,570,068 755,151,833 20,433,231 1,068,419,123 108,773,942 (194,001,905) 11,369,346,292 1.0000 NOTES: Note 1: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re -assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Note 2: Includes dry farm, government owned, institutional, irrigated, recreational, vacant, cross reference and unknown. CITY OF LA QUINTA Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years City Redevelopment Non-ProactArea Proiect Area i 20061 20071 2008 1 2009 1 2010 1 2011 1 20121 20131 20141 2015 1 2006 2 2007 2 2008 3 2009 3 20103 2011 3 20123 Direct Rates: City of La Quints 0.0760 0.0760 0.0760 0.0506 0.0506 0.0734 0.0760 0.0760 0.0760 0.0760 0.0000 0.0000 0.0000 0.0152 0.0036 0.0049 0.0524 Redevelopment agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.5830 0.5880 0.5150 0.5245 0.5432 0.5310 0.0000 Redevelopment agency Project Area 2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 County of Riverside 0.1960 0.1960 0.1960 0.2586 0.2586 0.2318 0.1957 0.1958 0.1958 0.1958 0.2639 0.2619 0.2619 0.2325 0.2501 0.2471 02683 County Free Library 0.0250 0.0250 0.0250 0.0284 0.0284 0.0280 0.0252 0.0253 0.0253 0.0253 0.0276 0.0276 0.0276 0.0277 0.0276 0.0282 0.0294 County Structure Fire Protection 0.0540 0.0540 0.0540 0.0610 0.0610 0.0602 0.0544 0.0544 0.0544 0.0544 0.0595 0.0595 0.0595 0.0595 0.0595 0.0607 0.0633 Coachella Valley Unified School District 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.4322 0.4322 0.4322 0.4322 0.0170 0.0150 0.0020 0.0149 0.0167 0.0182 0.0000 Desert Sands Unified School 0.4320 0.4320 0.4320 0.3765 0.3765 0.3716 0.0000 0.0000 0.0000 0.0000 0.0160 0.0140 0.0140 0.0695 0.0568 0.0637 0.3905 Desert Community College District 0.0700 0.0700 0.0700 0.0782 0.0782 0.0772 0.0698 0.0698 0.0698 0.0698 0.0030 0.0030 0.0720 0.0177 0.0152 0.0166 0.0812 Riverside County Office of Education 0.0380 0.0380 0.0380 0.0426 0.0426 0.0420 0.0380 0.0380 0.0380 0.0380 0.0030 0.0030 0.0180 0.0093 0.0027 0.0038 0.0442 Riverside County Regional Park & Open Space 0.0040 0.0040 0.0040 0.0000 0.0000 0.0000 0.0040 0.0039 0.0039 0.0039 0.0000 0.0000 0.0030 0.0000 0.0000 0.0000 0.0000 CV Public Cemetery 0.0032 0.0032 0.0032 0.0035 0.0035 0.0035 0.0032 0.0031 0.0031 0.0031 0.0000 0.0000 0.0000 0.0008 0.0002 0.0003 0.0037 CV Mosquito 0.0127 0.0127 0.0127 0.0142 0.0142 0.0141 0.0127 0.0127 0.0127 0.0127 0.0120 0.0120 0.0120 0.0112 0.0111 0.0112 0.0148 Desert Recreation District 0.0192 0.0192 0.0192 0.0215 0.0215 0.0213 0.0192 0.0192 0.0192 0.0192 0.0010 0.0020 0.0010 0.0044 0.0014 0.0019 0.0223 Coachella Valley Water District 0.0250 0.0250 0.0250 0.0284 0.0284 0.0281 0.0254 0.0254 0.0254 0.0254 0.0130 0.0130 0.0010 0.0127 0.0120 0.0124 0.0295 CV Resource Conservation 0.0003 0.0003 0.0003 0.0004 0.0004 0.0004 0.0003 0.0003 0.0003 0.0003 0.0000 0.0000 0.0130 0.0001 0.0000 0.0000 0.0004 CVWD District i Debt Service 0.0118 0.0118 0.0118 0.0000 0.0000 0.0131 0.0118 0.0118 0.0118 0.0118 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 CVWD Storm Water Unit 0.0320 0.0320 0.0320 0.0360 0.0360 0.0355 0.0321 0.0321 0.0321 0.0321 0.0010 0.0010 0.0000 0.0000 0.0000 0.0000 0.0000 Total Direct Rate 0.9992 0.9992 0.9992 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Tax Rate Area Overlapping Rates 4: Desert Sands Unified School Coachella Valley Water District Desert Community College. District Total Overlapping Rate 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-015 020-015 020-089 020-089 020-089 020-089 020-089 0.0767 0.0761 0.0799 0.0799 0.0811 0.1004 0.1147 0.1116 0.1095 0.1098 0.0767 0.0761 0.0756 0.0799 0.0811 0.1004 0.0757 0.0442 0.0332 0.0462 0.0464 0.0660 0.0860 0.0800 0.0800 0.1000 0.1000 0.0199 0.0208 0.0484 0.0464 0.0660 0.0860 0.0862 0.0199 0.0199 0.0199 0.0199 0.0200 0.0200 0.0200 0.0200 0.0200 0.0233 0.0208 0.0199 0.0199 0.0199 0.0200 0.0200 0.0079 0.1409 0.1293 0.1461 0.1462 0.1671 0.2063 0.2146 0.2115 0.2295 0.2331 0.1175 0.1169 0.1440 0.1462 0.1671 0.2063 0.1698 Total Direct and Overlapping Rate 1.1401 1.1285 1.1453 1.1462 1.1671 1.2063 1.2146 1.2115 1.2295 1.2331 1.1175 1.1169 1.1440 1.1463 1.1671 1.2063 1.1698 NOTE: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This 1% is shared by all taxing agencies for which the subject properly, resides within. Source: County of Riverside Auditor Controllers Office ' Direct rate from Tax Rate Area (TRA) 020-059 provided by Hdl Coren & Cone and overlapping debt rates from California Municipal Statistics 2 Direct rate taken from an analysis by the City of La Quints Finance Department staff of all TRNs in the Project area and do not include State ERAF deductions and overlapping rates provided by California Municipal Statistics Direct rate taken from an analysis of the TRA in the Project area and do not include State ERAF deductions and overlapping rates provided by California Municipal Statistics 4 Overlapping rates are based upon a single tax rate area only. TABLE 8 Redevelopment Proieot Area 2 20062 2007 2 20083 2009 3 2010 3 2011 3 2012 3 0.0000 0.0000 0.0000 0.0000 0.0000 0.0019 0.0499 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0862 0.2860 0.2920 0.2910 0.3193 0.3174 0.3059 0.0000 0.2617 0.2617 0.2617 0.2516 0.2537 0.2511 0.2553 0.0280 0.0280 0.0280 0.0280 0.0280 0.0286 0.0280 0.0603 0.0603 0.0603 0.0603 0.0603 0.0616 0.0602 0.0000 0.0000 0.0020 0.0000 0.0000 0.0000 0.0000 0.2000 0.1980 0.1970 0.1860 0.1859 0.1930 0.3716 0.0420 0.0410 0.0410 0.0386 0.0386 0.0401 0.0772 0.0230 0.0220 0.0220 0.0210 0.0210 0.0218 0.0420 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0001 0.0035 0.0150 0.0140 0.0140 0.0141 0.0141 0.0141 0.0140 0.0060 0.0060 0.0060 0.0053 0.0053 0.0059 0.0212 0.0770 0.0760 0.0760 0.0757 0.0757 0.0740 0.0281 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0004 0.0000 0.0000 0.0000 0.0000 0.0000 0.0005 0.0131 0.0010 0.0010 0.0010 0.0000 0.0000 0.0014 0.0355 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 020-144 020-144 020-144 020-144 020-144 020-144 020-144 0.0767 0.0761 0.0756 0.0799 0.0811 0.1004 0.0757 0.0442 0.0332 0.0484 0.0464 0.0660 0.0860 0.0862 0.0199 0.0199 0.0199 0.0199 0.0200 0.0200 0.0079 0.1409 0.1293 0.1440 0.1462 0.1671 0.2063 0.1698 1.1409 1.1293 1.1440 1.1462 1.1671 1.2063 1.1698 Taxpaver KSL Desert Resorts Inc TD Desert Development LQR Golf LLC Inland American La Quinta Pavilion East of Madison LLC Coral Option I LLC Town and Country Partners LLC Walmart Real Estate Business Trust Iota Griffin LLC Aventine Development Toll California V Shea La Quinta Lennar Homes of California Inc ND La Quinta Partners Quarry at La Quinta Inc Ivanhoe La Quinta Cove TD Desert Dev LP Source: HdL Coren & Cone CITY OF LA QUINTA TABLE 9 Principal Property Taxpayers Current Year and Ten Years Ago (in dollars) 2015 2006 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value $ 151,380,164 1 1.33% $ 211,692,968 1 2.71% 56,114,385 2 0.49% - 0.00% 45,242,598 3 0.40% - 0.00% 44,468,471 4 0.39% - 0.00% 43,656,182 5 0.38% - 0.00% 40,784,100 6 0.36% 40,659,869 3 0.52% 30,170,000 7 0.27% - 0.00% 25,650,232 8 0.23% 25,435,449 9 0.33% 27,209,103 9 0.24% - 0.00% 24,427,256 10 0.21% - 0.00% - - 59,365,891 2 0.76% - - 37,153,553 4 0.48% - - 35,728,872 5 0.46% - - 32,942,775 6 0.42% - - 27,470,605 7 0.35% - - 26,193,386 8 0.34% - - 24,145, 544 10 0.31% $ 489,102,491 4.30% $ 520,788,912 6.68% NOTES: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies. Effective February 1, 2012, AB1x26 dissolved the Redevelopment Agencies throughout the State of California which resulted in the reduction of amounts collected during Fiscal Year 2011-2012 and all subsequent years. The total tax levy is based on the Statement of Original Charge and Tax Increment Summaries from the Riverside County Auditor - Controller Office. This amount does not include the results of any successful appeals of a taxpayer assessed valuation. As such, the percentage of the levy collected may be lower than expected. The City participates in the Riverside County Teeter program, which allows for a 30% advance, one settlement payment for the first installment, a 10% advance, a settlement payment for the second installment and one final settlement payment, which is generally received during of the subsequent year. Collections for 2015 are for amounts received as of August 31, 2015. Source: County of Riverside Auditor Controller's Office CITY OF LA QUINTA TABLE 10 Property Tax Levies and Collections Last Ten Fiscal Years (in dollars) Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2006 $ 61,420,601 $ 73,097,362 119.01% $ 2,092,062 $ 75,189,424 122.42% 2007 74,170,170 83,797,365 112.98% 1,802,076 85,599,441 115.41% 2008 83,018,429 87,804,912 105.77% 3,216,547 91,021,459 109.64% 2009 83,934,188 86,721,572 103.32% 1,471,940 88,193,512 105.07% 2010 78,621,410 80,651,874 102.58% 434,643 81,086,517 103.14% 2011 72,735,079 74,047,640 101.80% 259,209 74,306,849 102.16% 2012 69,307,476 37,885,360 54.66% 181,381 38,066,741 54.92% 2013 5,706,535 5,823,575 102.05% 180,723 6,004,298 105.22% 2014 5,845,390 5,808,387 99.37% 202,342 6,010,729 102.83% 2015 5,968,705 6,100,655 102.21% 840,512 6,941,167 116.29% NOTES: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies. Effective February 1, 2012, AB1x26 dissolved the Redevelopment Agencies throughout the State of California which resulted in the reduction of amounts collected during Fiscal Year 2011-2012 and all subsequent years. The total tax levy is based on the Statement of Original Charge and Tax Increment Summaries from the Riverside County Auditor - Controller Office. This amount does not include the results of any successful appeals of a taxpayer assessed valuation. As such, the percentage of the levy collected may be lower than expected. The City participates in the Riverside County Teeter program, which allows for a 30% advance, one settlement payment for the first installment, a 10% advance, a settlement payment for the second installment and one final settlement payment, which is generally received during of the subsequent year. Collections for 2015 are for amounts received as of August 31, 2015. Source: County of Riverside Auditor Controller's Office Governmental Activities Reimbursement Agreement Capital leases USDA Loan Provident Savings Loan Due to Coachella Valley Unified School District Due to County of Riverside Developer Agreement Tax Allocation Bonds Project Area 1 Tax Allocation Bonds Project Area 2 2004 Local Agency Revenue Bonds ' 2011 Local Agency Revenue Bonds ' City Hall Lease Revenue Bonds Unamortized Discount and Issuance Costs Total Governmental CITY OF LA QUINTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years (in dollars) Fiscal Year Ended 2006 2007 2008 2009 2010 $ 328,311 $ 278,311 $ 228,311 $ 178,311 $ 128,311 - - - 149,169 114,583 - 751,754 741,171 - - - 1,556,283 1,530,958 5,186,627 4,431,178 3,675,731 2,874,653 2,072,965 1,850,000 1,750,000 1,600,000 1,400,000 1,200,000 776,030 643,539 511,048 343,814 174,584 141,785,000 139,145,000 136,350,000 133,390,000 130,255,000 6,130,000 6,025,000 5,915,000 5,800,000 5,680,000 89,265,000 87,745,000 86,175,000 84,560,000 82,890,000 6,245,000 5,900,000 5,540,000 5,160,000 4,760,000 (877,230) (877,230) (841,087) (804,944) (768,801) 250,688,738 245,040,798 239,154,003 235,359,040 228,778,771 Business -type Activities Capital Leases 1,090,602 825,848 681,048 285,217 54,543 Total Business -type activities 1,090,602 825,848 681,048 285,217 54,543 Total Primary Government $ 251,779,340 $ 245,866,646 $ 239,835,051 $ 235,644,257 $ 228,833,314 Population - State Department of Finance January 1 38,340 41,092 42,958 43,778 44,421 Number of Households 18,762 20,176 21,058 21,355 23,489 Median Household Income $ 82,938 $ 87,799 $ 91,366 $ 92,156 $ 90,124 Percentage of Personal Income Debt Per Capita 16.18% 13.88% 12.47% 11.97% 10.81% $ 6,567 $ 5,983 $ 5,583 $ 5,383 $ 5,151 'Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 'The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2 low & moderate income tax increment. TABLE 11 2011 2012 2013 2014 2015 286,097 169,084 43,736 - 286,097 169,084 43,736 - $ 256,556,707 $ 4,104,174 $ 5,682,982 $ 5,151,163 $ 78,253 40,090 71,045 129,063 103,869 729,480 - 702,105 686,345 668,933 1,503,433 - 1,441,096 1,405,755 1,367,344 1,255,243 - - - - 1,000,000 - - 109,365 $ 126,925,000 - - 0.22% 11,555,000 - - 108 $ 81,150,000 - - 28,850,000 - - - - 4,340,000 3,895,000 3,425,000 2,930,000 2,405,000 (1,115,799) - - - - 256,270,610 3,935,090 5,639,246 5,151,163 4,545,146 286,097 169,084 43,736 - 286,097 169,084 43,736 - $ 256,556,707 $ 4,104,174 $ 5,682,982 $ 5,151,163 $ 4,545,146 37,836 38,075 38,401 39,032 39,694 23,489 23,528 23,612 23,871 24,150 $ 104,410 $ 104,045 $ 111,077 $ 109,365 $ 97,526 10.46% 0.17% 0.22% 0.20% 0.19% $ 6,781 $ 108 $ 148 $ 132 $ 115 CITY OF LA QUINTA TABLE 12 Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Dollars) Outstanding General Bonded Debt Fiscal Year City Hall Local Agency Tax Percent of Per Ended Lease Revenue Allocation Assessed Median June 30 Obligation Bonds' Bonds Total Value' Household Income 2006 6,245,000 89,265,000 147,915,000 243,425,000 3.12% 2,935 2007 5,900,000 87,745,000 145,170,000 238,815,000 2.39% 2,720 2008 5,540,000 86,175,000 142,265,000 233,980,000 1.97% 2,561 2009 5,160,000 84,560,000 139,190,000 228,910,000 1.84% 2,484 2010 4,760,000 82,890,000 135,935,000 223,585,000 1.90% 2,481 2011 4,340,000 110,000,000 138,480,000 252,820,000 2.33% 2,421 2012 3,895,000 - - 3,895,000 0.04% 37 2013 3,425,000 - - 3,425,000 0.03% 31 2014 2,930,000 - - 2,930,000 0.03% 27 2015 2,405,000 - - 2,405,000 0.02% 20 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). ' Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Source: City of La Quinta CITY OF LA QUINTA Direct and Overlapping Debt June 30, 2015 City Assessed Valuation Total Assessed Valuation Source: Riverside County Auditor Controller Percentage Applicable' Overlapping Debt Repaid with Property Taxes And Assessments $ 11,369,346,292 Outstanding Debt 6/30/15 TABLE 13 Estimated Share of Overlapping nPht Desert Community College District 16.791% $ 308,619,492 $ 51,820,299 Coachella Valley Unified School District 53.135% 178,113,759 94,640,746 Desert Sands Unified School District (DSUSD) 20.229% 267,444,474 54,101,343 DSUSD Community Facilities District No. 1 88.912% 1,295,000 1,151,410 City of La Quinta 1915 Act Bonds 100.000% 170,000 170,000 Coachella Valley Water District Assessment District No. 68 86.122% 1,620,000 1,395,176 Total overlapping debt repaid with property taxes 757,262,725 203,278,974 Overlapping Other Debt including Certifications of Participation (COP): Riverside County General Fund Obligations 5.062% $ 961,952,082 $ 48,694,014 Riverside County Pension Obligations 5.062% 320,470,000 16,222,191 Riverside County Board of Education COP 5.062% 1,835,000 92,888 Coachella Valley Unified School District COP 53.135% 42,435,000 22,547,837 Coachella Valley Unified School District COP 20.229% 61,360,000 12,412,514 Coachella Valley Recreation and Park District COP 26.552% 1,652,264 438,709 Total overlapping other debt 1,389,704,346 100,408,153 Total overlapping debt City direct debt Total direct and overlapping debt 2,146,967,071 303,687,127 4,545,146 $ 308,232,273 Notes: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. Source: California Municipal Statistics, Inc.- overlapping debt Source: City of La Quinta - City Direct debt Assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit CITY OF LA QUINTA Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2006 2007 2008 2009 2010 $ 7,813,866,586 $ 9,975,646,644 $ 11,866,414,134 $12,416,034,763 $11,753,185,892 15% 15% 15% 15% 15% 1,172,079,988 1,496,346,997 1,779,962,120 1,862,405,214 1,762,977,884 $ 1,172,079,988 $ 1,496,346,997 $ 1,779,962,120 $ 1,862,405,214 $ 1,762,977,884 0.0% 0.0% 0.0% 0.0% 0.0% Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quinta has no general bonded indebtedness Source: City of La Quinta Finance Department based upon the Assessed valuation received from the County of Riverside Auditor Controllers Office TABLE 14 2011 2012 2013 2014 2015 $ 10,870,790,733 $ 10,331,431,958 $ 10,274,998,112 $ 10,726,752,603 $ 11,369,346,292 15% 15% 15% 15% 15% 1,630,618,610 1,549,714,794 1,541,249,717 1,609,012,890 1,705,401,944 $ 1,630,618,610 $ 1,549,714,794 $ 1,541,249,717 $ 1,609,012,890 $ 1,705,401,944 0.0% 0.0% 0.0% 0.0% 0.0% CITY OF LA QUINTA Pledged -Revenue Coverage Last Ten Fiscal Years (In Dollars) TABLE 15 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. ' Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee Fund. Local Agency Revenue Bonds (City Hall Project) Fiscal Year Ended Lease Less: Other Net Lease Debt Service June 30 Revenue' Debt Payments Revenue Principal Interest Coverage 2006 $ 680,575 $ - $ 680,575 $ 330,000 $ 350,575 1.00 2007 678,865 - 678,865 345,000 333,865 1.00 2008 675,880 - 675,880 360,000 315,880 1.00 2009 676,450 - 676,450 380,000 296,450 1.00 2010 675,280 - 675,280 400,000 275,280 1.00 2011 672,525 - 672,525 420,000 252,525 1.00 2012 673,521 - 673,521 445,000 228,521 1.00 2013 673,130 - 673,130 470,000 203,130 1.00 2014 671,351 - 671,351 495,000 176,351 1.00 2015 673,046 - 673,046 525,000 148,046 1.00 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. ' Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee Fund. TABLE 16 CIN OF LA QUINTA Demographic and Economic Statistics Last Ten Calendar Years Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Calendar Year Year Year Year Year Year Year Year Year Year Sources: 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 City Land (Sq Miles) (3) 35.10. 35.10 35.31 35.31 35.31 35.31 35.16 35.16 35.16 35.71 Population (1) 38,340 41,092 42,958 43,778 44,421 37,836 �'� 38,075 38,401 39,032 39,694 Median Household Income (in dollars) (7) $82,938 $87,799 $91,366 $92,156 $90,124 $104,410 $104,045 $111,077 $109,365 $97,526 Number of Dwelling Units (3) 18,762 20,176 21,058 21,355 23,489 23,528 23,528 23,612 23,871 24,150 Persons per Household (1) 2.86 2.85 2.85 2.85 2.87 2.55 2.56 2.58 2.59 2.60 Average Income per person per household (4) $29,050 $30,850 $32,047 $32,324 $31,457 $40,961 $40,722 $43,053 $42,226 $37,510 Labor Force (2) 14,500 15,300 15,200 14,800 14,600 14,400 15,100 15,300 15,600 17,300 Employment (2) 14,100 14,900 14,600 13,700 13,500 13,300 14,100 14,400 14,900 16,600 Unemployment Rate (2) 2.76% 2.61% 3.95% 7.43% 7.53% 7.64% 6.62% 5.60%. 4.30% 4.50% Median age (4) 36 36.4 36.4 36.4 42.2 41.5 42.8 43.6 44.8 45.1 Sources: (1) State of California Department of Finance - January 1 of each year (2) Stale of California Employment Development Department website (3) City of La Quints Building & Safety and Community Development Departments (4) Hdl-Coren & Cone Companies (5) The population number was updated based upon the 2010 United States Census (6) The information was not collected before 2006 (7) Calculated using "Persons per Household" multiplied by "Average Income per Person per Household." CITY OF LA QUINTA TABLE 17 Principal Employers Current Year and Ten Years Ago - Store closed prior to June 30, 2015. Source: City of La Quinta 2014-2015 2005-2006 Percent of Number of Total Number of Employer Activity Rank Employees Employment Employees Rank La Quinta Resort & Club Hotel & Golf Resort 1 1,233 7.43% 1,600 1 PGA West Golf Resort 2 1,214 7.31% 500 5 Desert Sands Unified School District Government 3 1,400 8.43% 1,534 2 Wal-Mart Super Center Retailer 4 360 2.17% 800 3 Costco Retailer 5 246 1.48% - - Home Depot Retailer 6 181 1.09% 240 6 Lowe's Home Improvement Retailer 7 152 0.92% 150 8 Imperial Irrigation District Utility Company 8 142 0.86% 200 7 Rancho La Quinta Golf Resort 8 128 0.77% 700 4 Stater Brothers Grocery Store 10 120 0.72% 150 8 Vons Grocery Store 11 100 0.60% - - Traditions Golf Club Golf Resort 100 9 Ralph's' Grocery Store - 0.00% 88 10 Total employment listed 5,276 31.78% Total City Employment - July 1 16,600 - Store closed prior to June 30, 2015. Source: City of La Quinta TABLE 18 CITY OF LA QUINTA Full-time City Employees by Function Last Ten Fiscal Years Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Administration 9.00 10.00 12.00 12.00 13.00 14.00 12.00 11.00 7.00 7.00 City Clerk 5.00 5.00 6.00 6.00 6.00 6.00 5.00 5.00 4.00 4.00 Finance 9.00 9.00 9.00 9.00 9.00 9.00 8.00 8.00 7.00 7.00 Community Services 10.25 10.25 11.25 11.25 10.35 10.25 10.35 10.35 9.00 9.32 Building and Safety 22.00 24.00 25.00 25.00 25.00 24.00 21.00 21.00 Planning and Development 12.00 12.00 12.00 12.00 10.00 9.00 8.00 9.00 ` Community Development - - - - - - - - 16.65 16.35 Public Works 26.25 26.25 28.25 29.25 27.25 26.25 24.25 23.25 21.00 20.00 Golf Course 0.50 0.50 0.50 0.50 0.40 0.50 0.40 0.40 0.35 0.33 Total 94.00 97.00 104.00 105.00 101.00 99.00 89.00 88.00 65.00 64.00 Source: City of La Quinta NOTE: The City of La Quinta contracts with the County of Riverside for Police Services and with the California Department of Forestry through a contract with the County of Riverside for Fire Services. In addition the City -owned Golf Course is operated by Landmark Golf. These positions have not been included as these positions are not City employees. - The City merged the Building and Safety Department with the Planning and Development Department in 2014. TABLE 19 CITY OF LA QUINTA Operating Indicators by Function Last Ten Fiscal Years The Senior Center was converted the Wellness Center in 2015. The Wellness Center is available to all residents of La Quinta for a nominal fee. z The issuing of animals licenses was transferred to the County of Riverside on May 7, 2015. 3 Business license processing was transferred to the Community Development Department from the Finance Department in 2015. Source: City of La Quints, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Finance: Number of Animal Licenses Processed 2 892 1,022 1,272 1,609 1,768 1,619 1,674 1,505 1,602 1,374 Number of Accounts Payable Checks Processe 4,696 4,722 4,840 4,819 4,393 4,530 3,766 3,576 3,696 3,833 Number of investment purchases 39 73 64 36 32 20 27 30 22 21 Par value of investments $ 327,417,000 $ 392,729,000 $ 424,500,000 $ 229,969,000 $ 267,213,000 $ 189,810,285 $ 188,782,874 $ 164,614,769 $ 136,323,300 $ 128,990,447 Number of cleared checks 5,081 4,837 5,501 5,269 4,984 4,912 5,103 3,899 3,922 4,004 Number of outgoing bank vires 202 158 136 91 75 87 63 58 58 54 Public Works: Encroachment permits issued 304 218 110 132 78 104 65 124 109 127 Request for services 618 419 1152 1931 1306 746 534 740 1,322 1,261 Community Development: Number of Active Business Licenses 3 3,208 3,424 3,690 3,523 3,428 3,183 3,310 3,520 3,998 4,452 Permits: Single family Detached 1,044 526 297 129 56 85 39 83 147 176 Single family Attached 227 38 - 6 12 - 11 - - 4 Residential Pool 866 612 331 207 152 148 127 162 204 255 Wall/Fence 1,502 963 583 299 178 218 149 167 220 328 Other 1,607 1,404 1,121 908 790 1,033 916 1,042 1,158 1,316 Total Permits 5,246 3,543 2,332 1,549 1,188 1,484 1,242 1,454 1,729 2,079 Code Compliance: Animal Control Incidents Handled 1,901 687 2,920 3,630 3,984 4,392 4,246 3,206 1,645 1,085 Vehicle abatements 909 296 351 346 214 263 139 99 88 85 Garage Sale Permits 1,190 1,444 1,519 1,535 1,663 1,805 1,430 1,404 1,255 1,290 Weed abatements 141 76 117 97 125 143 106 1,404 43 45 Nuisance abatements 1,611 2,032 2,142 3,130 2,340 2,252 2,433 1,668 730 557 Community Services: Library activities: Library Volume 42,050 44,981 66,124 81,124 89,060 92,484 109,000 63,955 71,874 73,924 Library books checked out 55,002 99,659 117,738 215,843 259,711 263,064 275,838 220,690 329,154 263,047 Library Cards Issued 5,550 5,325 3,675 3,684 3,547 3,822 4,477 2,966 2,035 2,418 Number of School Children Visiting Library 745 260 841 1,036 772 1,881 962 737 1,539 1,562 Library Volunteer Hours 1,891 1,583 1,951 2,342 2,723 4,280 2,720 2,226 1,340 1,917 Senior Center/Wellness Center': Number of visits 14,305 12,955 14,013 15,739 20,326 18,403 16,642 9,350 11,500 23,871 Senior CentenWellness Center Volunteer 1 3,481 4,192 3,332 2,583 3,131 3,099 2,690 2,233 2,745 1,279 Recreation activities: Participants: Leisure Classes 1,373 1,192 990 1,140 1,437 1,512 2,016 1,475 1,177 1,322 Special events 4,668 7,809 8,109 11,053 8,795 8,933 36,305 5,970 5,927 6,460 Adult Sports 3,402 6,827 8,550 10,806 13,364 13,092 5,647 3,865 5,878 5,487 Golf course: Golf rounds played 38,934 40,548 40,516 39,150 43,779 45,269 46,949 46,352 43,610 38,383 Average $ Green fee $ 71.12 $ 76.97 $ 81.09 $ 76.13 $ 71.59 $ 70.70 $ 70.40 $ 67.44 $ 66.83 $ 45.94 Planning and Development: Number of residential units approved 1,063 534 338 100 255 208 285 228 494 208 Commercial square footage approved 533,726 124,821 342,502 390,097 6,200 27,526 61,662 - 113,149 79,092 The Senior Center was converted the Wellness Center in 2015. The Wellness Center is available to all residents of La Quinta for a nominal fee. z The issuing of animals licenses was transferred to the County of Riverside on May 7, 2015. 3 Business license processing was transferred to the Community Development Department from the Finance Department in 2015. Source: City of La Quints, Public works: Streets (miles) Bikepaths (miles)2 Streetlights 1 Traffic signals Traffic signs Bridges Parks and recreation: Parks Park Acreage Undeveloped Park Acreage Senior Center Museum Library Golf Course: Municipal golf courses TABLE 20 CITY OF LA QUINTA Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year Ended June 30, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 118.40 122 127 127 127 127 128 128 128 128 22 22 22 22 22 22 22 22 22 34 73 85 85 261 265 265 269 269 277 277 44 45.25 45.25 49 50 50 51 52 54 54 2,799 2,845 2,895 2,899 2,909 2,919 2,934 2,984 3,018 3,018 12 12 12 12 12 12 12 12 13 13 12 12 13 13 13 13 13 13 13 13 207 207 209 209 218 218 218 218 218 218 40 40 40 40 40 40 40 40 40 40 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 1 1 1 1 1 1 1 1 1 1 ' In Fiscal Year ending 2009, street lights at intersections were included for the first time. 2 Bike path miles were updated to include both Class I and Class II bicycles paths in 2015. Company Name Policy Number Hartford FA026725413 Hartford FA026725414 CJPIA-Alliant B128410009W14 Lloyds W14D19140101 Lloyds W14D19150201 California Joint Powers Insurance Authority California Joint Powers Insurance Authority Alliant PEC0011896301 Notes CITY OF LA QUINTA Schedule of Insurance in Force June 30, 2015 Coverage Employee Dishonesty, Forgery, Computer Fraud Employee Dishonesty, Forgery, Computer Fraud All Risk Property Insurance Including Auto Physical Damage, Terrorism, Boiler & Machinery (Excluding Earthquake) Earthquake/Flood Real & Personal Property Including Contingent Tax Interruption Earthquake/Flood Real & Personal Property Including Contingent Tax Interruption Comprehensive General Liability Worker's Compensation Pollution Liability TABLE 21 Limits Term Premium $1 Million 12/03/13 - 12/03/14 $3,224 $1 Million 12/03/14 - 12/03/15 $3,366 $20 Million 07/01/14 - 07/01/15 $28,793 Single Limit per Occurrence subject to other sublimits $20 Million 02/07/14 - 02/07/15 $103,922 $10 Million 02/07/15 to 02/07/16 $95,976 $50 Million 06/30/14 - 06/30/15 $417,690 Single Limit per Occurrence $10 Million 06/30/14 - 06/30/15 $219,195 $10 Million 7/01/14 - 7/01/17 $13,340