2011-2012 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2012
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2012
Prepared By
FINANCE DEPARTMENT
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2012
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letterof Transmittal.......................................................................................................
List of Principal Officials.................................................................................................
OrganizationalChart......................................................................................................
Certificate of Achievement for Excellence in Financial Reporting (GFOA)....................
FINANCIAL SECTION
Independent Auditor's Report........................................................................................
Management's Discussion and Analysis........................................................................
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets..........................................................................................
Statementof Activities.............................................................................................
Fund Financial Statements:
Balance Sheet — Governmental Funds...................................................................
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets................................................................................
Statement of Revenues, Expenditures and Changes in Fund
Balances — Governmental Funds............................................................................
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities
Budgetary Comparison Statement by Department — General Fund .......................
Budgetary Comparison Statement — Housing Authority PA No. 2 ..........................
Statement of Net Assets — Proprietary Funds.........................................................
Statement of Revenues, Expenses and Changes in Fund Net Assets —
ProprietaryFunds....................................................................................................
Statement of Cash Flows — Proprietary Funds ........................................................
Statement of Fiduciary Net Assets - Fiduciary Funds .............................................
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CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2012
TABLE OF CONTENTS
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds
Notes to Financial Statements
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Non -Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Non -Major Governmental Funds .....................
Budgetary Comparison Schedules — Special Revenue Funds
StateGas Tax....................................................................
Library.................................................................................
Federal Assistance..............................................................
SLEBG................................................................................
IndianGaming.....................................................................
Lighting and Landscaping...................................................
Quimby................................................................................
Congestion Management Air Quality Fund .........................
PublicSafety.......................................................................
Art In Public Places.............................................................
South Coast Air Quality.......................................................
AB939................................................................................
Law Enforcement................................................................
Proposition1 B Fund............................................................
Justice Assistance Grant .....................................................
Housing Authority PA No. 1................................................
Low/Moderate Income Housing PA No. 1...........................
Low/Moderate Income Housing PA No. 2 ..........................
Budgetary Comparison Schedules — Capital Projects Funds
Capital Improvement.......................................................
CivicCenter.....................................................................
Infrastructure...................................................................
Transportation.................................................................
Parks and Recreation......................................................
Library Development.......................................................
Community Center..........................................................
StreetFacility...................................................................
ParkFacility.....................................................................
FireFacility......................................................................
2011 Low/Mod Bond .......................................................
2004 Low/Mod Bond .......................................................
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CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2012
TABLE OF CONTENTS
Page
Redevelopment Agency PA No. 1 — Capital Projects............................................................131
Redevelopment Agency PA No. 2 — Capital Projects............................................................132
Budgetary Comparison Schedules — Debt Service Funds
Redevelopment Agency PA No. 1 — Debt Service.................................................................133
Redevelopment Agency PA No. 2 — Debt Service.................................................................134
FinancingAuthority................................................................................................................135
Combining Statement of Net Assets — Internal Service Funds....................................................138
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets — Internal Service Funds...............................................................................139
Combining Statement of Cash Flows — Internal Service Funds...................................................140
Combining Balance Sheet — All Agency Funds............................................................................142
Combining Statement of Changes in Assets and Liabilities — All Agency Funds .........................143
STATISTICAL SECTION
NetAssets by Component............................................................................................................146
Changesin Net Assets.................................................................................................................148
Changes in Net Assets — Governmental Activities.......................................................................150
Changes in Net Assets — Business -type Activities.......................................................................152
Fund Balances of Governmental Funds.......................................................................................154
Changes in Fund Balances of Governmental Funds....................................................................156
Assessed Value and Estimated Actual Value of Taxable Property..............................................158
Assessed Value and Estimated Actual Value of Taxable Property -
RedevelopmentAgency...............................................................................................................159
Direct and Overlapping Property Tax Rates.................................................................................160
PrincipalProperty Taxpayers.......................................................................................................162
Property Tax Levies and Collections............................................................................................163
Ratios of Outstanding Debt by Type.............................................................................................164
Ratio of General Bonded Debt Outstanding.................................................................................166
Directand Overlapping Debt........................................................................................................167
Legal Debt Margin Information.....................................................................................................168
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2012
TABLE OF CONTENTS
Page
NiimhPr
Pledged -Revenue Coverage........................................................................................................170
Demographic and Economic Statistics.........................................................................................171
PrincipalEmployers......................................................................................................................172
Full-time City Employees..............................................................................................................173
OperatingIndicators.....................................................................................................................174
Capital Asset Statistics.................................................................................................................175
Schedule of Insurance in Force....................................................................................................176
0 i
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLS TANIPICO (760) 7 7 7 - 7 0 0 0
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
December 4, 2012
To the Honorable Mayor, Members of the Governing Council, and Citizens of the
City of La Quinta, California
Government Code Section 26909 (a) requires that the City, as a local agency of
the County, contract with a certified public accountant to perform an annual audit
of the accounts and records of the City and that the audit conform to generally
accepted auditing standards. Furthermore, Government Code Section 26909 (b)
states that an audit report shall be filed with the State Controller and with the
County Auditor of the County in which the district is located within 12 t-nonths of
the end of the fiscal year. This report is published to fulfill these requirements for
the fiscal year ended June 30, 2012. In addition, City Ordinance 2.12.040 requires
an annual audit be performed by a certified public accountant.
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of
internal control that it has established for this purpose. Because the cost of internal
control should not exceed anticipated benefits, the objective is to provide
reaSanable, rather than absolute, assurance that the financial statements are free of
any material misstatements.
Lance Soll & Lunghard LLP Certified Public Accountants have issued an unqualified
("clean") opinion on the City- of La Quinta financial statements for the year ended
June 30, 2012. The independent auditor's report is located at the front of the
financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and
analysis of the basic financial statements. The MD&A complements the letter of
transmittal and should be read in conjunction with it.
Profile of the Government
The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of
Riverside County known as the Coachella Valley. The City motto is "The Gem of the
Desert." The City is governed by a five -member City Council under the
Council/Manager form of government. The Mayor is directly elected by the citizens.
The Mayor serves a two-year term and the four Council Members serve four-year
terms, with two Council Members elected every two years. The Mayor and four Council
Members are elected at large.
The City was originally incorporated in 1982 as a general law City and it became a
charter City in November 1996.
The Council appoints the City Manager, who in turn appoints the Assistant City
Managers and the heads of the various departments. The City of La Quinta provides a
range of services which include: construction and maintenance of streets and other
infrastructure; community development and planning; construction and code
compliance; various recreational and cultural activities; and general municipal services.
Services are also provided to the City and its citizens by contract and by the direct
services of other government agencies and organizations. These services include
police and fire protection through the County of Riverside, library services through the
County of Riverside, visitor and tourist information through Greater Palm Springs
Convention and Visitors Bureau, city promotion through the La Quinta Chamber of
Commerce, water and sewer service through the Coachella Valley Water District,
electricity service through the Imperial Irrigation District, refuse collection through
Burrtec Waste Industries, public transit through Sunline Transit Agency, and cable
service through Time Warner and Verizon.
The City of La Quinta is also financially accountable for a legally separate Successor
Agency for the former Redevelopment Agency, Financing Authority, and Housing
Authority. Additional information on these legally separate entities can be found in the
notes to the financial statements.
Pursuant to City Ordinance 2.08.060 and 2.12.030, the City Manager and Finance
Director are responsible for the preparation of the annual budget for City Council
consideration prior to the start of the fiscal year. The annual budget serves as the
foundation for the City of La Quinta's financial planning and control.
The budget is prepared by fund, function, department and line item. Department heads
may transfer line item resources within a division with the approval of the City Manager.
Transfers between divisions and departments also need approval from the City
Manager.
Local economy
According to the State of California Economic Development Department (EDD), as of
June 2012, the total workforce for the City of La Quinta was 15,100 of which 14,100
were employed for a 6.62% unemployment rate. This rate is significantly lower than the
Riverside County unemployment rate of 12.6% and the statewide unemployment rate of
10.7%.
During the last ten years, the City of La Quinta has been in a growth phase with net
assessed values increasing from $4.61 billion in Fiscal Year 2002-03 to $10.38 billion in
2011-12. It should be noted; however, that the net taxable values in the past three fiscal
years have consistently decreased by 5.31 % in 2009-10, 7.48% in 2010-11, and 4.95%
in 2011-12. The major increase in assessed values over the past decade consists
primarily of residential development; however, major commercial development has
occurred along the Highway 111 corridor during this time.
The City of La Quinta has transformed itself from a retirement community known as the
"Gem of the Desert" and the western home of golf to a year-round full -service
community. Major employers include the La Quinta Resort and Club, Desert Sands
Unified School District, Wal-Mart Super Center, Home Depot, Hideaway, Lowe's Home
Improvement and Tradition Golf Club.
During the past ten years, the City of La Quinta general fund expenditures have
increased 209%. Two Departments that have exceeded the average include and Public
Safety (239%) and Community Services (258%). In the case of Public Safety, much of
the increase is reflected in increased police service personnel. In the case of
Community Services, much of the increase can be attributed to adding library and
museum services and park maintenance functions to the Department.
During the same ten-year period, the City of La Quinta general fund revenues increased
143%. Sources that exceeded the average include intergovernmental (189%), and
taxes (184%). In the case of intergovernmental revenues, most of the increase is
attributable to the way the fire service contract is accounted for and an increase in
motor vehicle fees. In the case of taxes, the increase is due greatly to the increase in
sales tax revenues from the commercial development along Highway 111.
While the City has experienced record setting growth in the past decade, the recession
of Fiscal Year 2008-11 has impacted the City of La Quinta. This downturn has resulted
in our residents and businesses experiencing: (1) a higher level of unemployment, (2)
lower property values; (3) more commercial store closings and (4) more home
foreclosures than in previous years. In addition, the credit crisis has resulted in fewer
new home starts and new businesses delaying their plans to open stores in the City.
While the City is the home of large and small retailers and hotels, no significant store
openings have occurred in Fiscal Year 2011-12 and several large retailers have closed
their doors in recent years. The City has experienced a modest increase in sales tax
and transient occupancy tax in Fiscal Year 2011-12 versus Fiscal Year 2010-11;
however, property tax collections still continue to decline in Fiscal Year 2012-13 from
the historic highs of Fiscal Year 2006-07. While economists may state that the
recession is over, future revenue declines in Fiscal Year 2011-12 and beyond may be
on the horizon given the possible continued decline in property tax assessments. Since
Fiscal Year 2008-2009, the City has tightened its fiscal belt at its mid year reviews and
will have to continue to monitor and possibly further reduce expenditures in Fiscal Year
2012-13 given the revenue shortfalls that may continue to occur. This is evidenced by
the reduction in staff levels from 105 positions budgeted for in Fiscal Year 2008-09 to
101 positions in Fiscal Year 2009-10 and a further reduction to 99 positions in Fiscal
Year 2010-1land 89 positions in 2011-12. With the dissolution of the Redevelopment
Agency in June 2011, staffing levels will continue to be monitored in the future.
Long-term financial planning
Each year the City embarks on a strategic planning process which begins in the spring
with a discussion of the City Council goals and ends with adoption of the budget in
June.
The documents that are generated in this strategic planning process include a
presentation of the financial achievements for the past fiscal year, a five-year cash flow
projection for each City, Housing Authority and Financing Authority fund, and a financial
management strategies and recommendation report for the coming fiscal year. Within
the financial strategies and recommendation report, a "build out" analysis is included
which estimates the annual General Fund revenue (inflows) and expenditures (outflows)
in thirty years. This build out analysis is updated every three years based upon future
land use designations, existing land use and population projections.
This build out report projects that in twenty (20) years, with an estimated population of
81,771 versus the current 38,075, the annual revenues into the General Fund will be
$3,276,000 less than expenditures. With this information provided during the mid -year
financial review, the City of La Quinta is attempting to attract revenue -producing
businesses and hotels consistent with its land use planning, while at the same time
providing current and future residents a level of service that makes them proud to call
La Quinta their home.
UUT
During Fiscal Year 2011-12, the General Fund balance decreased by $1,205,473
consisting of revenue decreases mainly in the interest income category. The decrease
in interest income is due to historically low interest rates and the repayment of the
Redevelopment Agency loans in the prior year.
The General Fund balance as of June 30, 2012 was $91.9 million of which $23.9 million
versus $23.7 million in Fiscal Year 2010-11 was nonspendable, $19.0 million versus
$19.3 million in Fiscal Year 2010-11 was committed, $1.7 million versus $1.8 in Fiscal
Year 2010-11 was assigned, and $47.1 million versus $48.1 million in Fiscal Year 2010-
11 was unassigned. The unassigned fund balances include a cash flow reserve of
8.25% of the annual budget and a $6.3 million future operational deficit reserve.
Additional components of the strategic planning process include the Economic
Development Plan, the Capital Improvement Program, the Annual Budget and the Five -
Year Resource Allocation Plan. An explanation of each of these documents is provided
below.
Economic Development Plan
This plan outlines a vision and direction for the City's economic development activities.
It presents the mission statement, implementation policies, projected resources, and
business plan the City will follow to sustain a comprehensive economic development
effort. It is goal -oriented in that the economic development efforts specified in the plan
are a key to generating the financial resources necessary to support both the Resource
Allocation Plan and the Capital Improvement Plan.
Capital Improvement Plan
This plan is primarily a planning document that establishes five-year funding priorities
for capital improvements. This plan also includes a listing of all the other desired capital
improvements that cannot, or need not, be funded within the five-year horizon and
totaled $123.4 million.
Five -Year Resource Allocation Plan
This plan is primarily a planning document that provides a five-year horizon for
forecasted operational needs of each department, as well as the City as a whole. This
plan is a cyclical review of all operations expenditures to reassess funding mechanisms
behind personnel responsibilities and the various service levels of all programs.
Annual Budget
This document is the annual implementation tool for the overall planning process. The
budget will encompass each element of the strategic planning effort and will implement:
the goals of the Economic Development Plan; the resource and demand allocation
outlined in the Five -Year Resource Allocation Plan; and the capital improvement
investment for a given year.
In
Relevant Financial Policies
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1 x26 that
provides for the dissolution of all redevelopment agencies in the State of California.
This action impacted the reporting entity of the City of La Quinta that previously had
reported a redevelopment agency within the reporting entity of the City as a blended
component unit.
This action also deeply impacted the City's ability to continue an economic development
program as the majority of funds used for capital improvements in the City came from
funds of the Redevelopment Agency.
Major Initiatives
Despite the dissolution of the La Quinta Redevelopment Agency, projects that meet
certain criteria can continue to completion. The City is currently working on two
projects. The Washington Street Apartment Project to rehabilitate a 73-unit affordable
rental housing project is underway and is scheduled to be completed by the summer of
2015. In addition, the Agency had purchased land near the southeast corner of
Highway 111 and Dune Palms Road prior to the La Quinta Redevelopment Agency
dissolution to construct additional affordable Apartment units. Construction on this
project known as Coral Mountain will begin in September 2012.
The City has begun construction on the Adams Street Bridge which will span the
Whitewater Channel and provide an all-weather crossing at this location.
The City has acquired a 525-acre parcel at Avenue 52 and Jefferson Street for the
development of two golf courses, a clubhouse, and future hotel resort development.
The first golf course was dedicated in January 2005. The second course, permanent
clubhouse, and infrastructure have not proceeded as planned and remain in the
planning stages due to the slow down in the economy. The Agency continues to seek
quality development opportunities for future hotel(s) on the property to generate
additional General Fund revenues.
Awards and 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 Quinta for its comprehensive annual financial report (CAFR) for the fiscal
year ended June 30, 2011. This was the sixteenth consecutive year that the City has
received this prestigious award. In order to be awarded a Certificate of Achievement,
the government had to publish an easily readable and efficiently
w
organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that
our current CAFR continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report would not have been possible without the efficient
and dedicated service of the finance department staff. Credit also must be given to
the Mayor and City Council for their support in maintaining the highest standards of
professionalism in the management of the City of La Quinta's finances.
Respectfully submitted,
Robbeyn Bird, CPA
Finance Director
vii
City of La Quinta
Directory of Officials
June 30, 2012
CITY COUNCIL
Don Adolph, Mayor
Terry Henderson, Mayor Pro Tern
Linda Evans, Council Member
Kristy Franklin, Council Member
Lee Osborne, Council Member
ADMINISTRATION
Frank J. Spevacek, City Manager
Robbeyn Bird, Finance Director
Greg Butler, Building & Safety Director
Edie Hylton, Community Services Director
Kathy Jenson, City Attorney
Les Johnson, Planning Director
Tim Jonasson, Public Works Director/City Engineer
Susan Maysels, City Clerk
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IX
Certific,,
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Quinta
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
i
President
Executive Director
LS•000
•000
®•
CERTIFIED PUBLIC ACCOUNTANTS
Brandon W. Burrows, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
Bryan S. Gruber, CPA
Deborah A. Harper, CPA
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of City Council
City of La Quinta, California
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of La Quinta,
California, as of and for the year ended June 30, 2012, which collectively comprise the City's basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
City of La Quinta, California's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and the significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2012,
and the respective changes in financial position, and cash flows, where applicable, thereof and the
respective budgetary comparison for the General Fund and Housing Authority Project Area No. 2 for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued our report dated
November 16, 2012, on our consideration of the City of La Quinta, California's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
We would like to draw the reader's attention to Note 23 — "Successor Agency Trust for Assets of the
Former Redevelopment Agency". The note provides information on the dissolution of the Redevelopment
Agency and the new formed Successor Agency.
Lance, Soil & Lunghard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 TEL: 714.672.0022 • Fax: 714.672.0331 www.lslcpas.com
Orange County • Temecula Valley Silicon Valley
LSE
CERTIFIED PUBLJC ACCOUNTANTS
To the Honorable Mayor and Members of City Council
City of La Quinta, California
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming an, opinion on the financial statements that
collectively comprise the City of La Quinta, California's financial statements as a whole. The introductory
section and combining and individual nonmajor fund financial statements, budgetary comparison
schedules, and statistical section, are presented for purposes of additional analysis and are not a
required part of the financial statements. The combining and individual nonmajor fund financial
statements and budgetary comparison schedules are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole. The introductory and
statistical sections has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Brea, California
November 16, 2012
2
Management's Discussion and Analysis
As management of the City of La Quinta, we offer readers of the City of La Quinta's
financial statements this narrative, overview and analysis of the financial activities for
the fiscal year ended June 30, 2012. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our
letter of transmittal, which can be found in an earlier section of this report. All amounts,
unless otherwise indicated, are rounded to the nearest thousands of dollars.
Financial Highlights
• The assets of the City of La Quinta exceeded its liabilities at the close of the most
recent fiscal year by $688,166,000 (net assets). Of this amount, $85,087,000
(unrestricted net assets) may be used to meet the government's ongoing
obligations to citizens and creditors. Approximately $576,494,000 or 84 percent
was invested in capital assets net of related debt and is not available to meet
ongoing obligations.
• The governmental activities total net assets increased by $169,967,000 and the
Business -Type total net assets decreased by $212,000 attributable to the
SilverRock Golf Course. Of the $169,755,000, the extraordinary gain on the
dissolution of the Redevelopment Agency represented $158,655,000. This
extraordinary gain is explained more extensively in this document in Note 23.
• As of the close of the current fiscal year, the City of La Quinta's governmental
funds reported combined ending fund balances of $107,132,000 a decrease of
$86,239,000 in comparison with the prior year. The primary reason for this
decrease is due to the dissolution of the Redevelopment Agency which resulted
in the need to eliminate or postpone capital projects funded with tax increment
funds.
• At the end of the current fiscal year, the unassigned General Fund Balance
comprised $47,738,000 of the total $91,876,000 General Fund Balance or
52 percent of the total Fund Balance and 131 percent of total General Fund
budgeted expenditures.
• The total debt decreased by $253,429,000 during the current fiscal year from
$258,976,000 to $5,547,000. This decrease is mainly due to transfer of the
Redevelopment Agency bonded indebtedness to the Successor Agency due to
dissolution of the Redevelopment Agency.
3
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of
La Quinta's basic financial statements. The City of La Quinta's basic financial
statements comprise three components: 1) government -wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad
overview of the City of La Quinta's finances, in a manner similar to a private -sector
business.
The statement of net assets presents information on all of the City of La Quinta's assets
and liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City of La Quinta is improving or deteriorating.
The statement of activities presents information showing how the government's net
assets changed during the most recent fiscal year. All changes in net assets are
reported as soon as the underlying event giving rise to the change occurs, regardless of
the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g.,
earned but unused vacation leave).
Both of the government -wide financial statements mentioned above distinguish
functions of the City of La Quinta that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the City of
La Quinta include general government, public safety, community services, planning and
development and public works. The business -type activities of the City of La Quinta
include the SilverRock Golf course operations.
The government -wide financial statements include not only the City of La Quinta itself
(known as the primary government), but also the La Quinta Financing Authority and the
La Quinta Housing Authority. Although legally separate entities they function for all
practical purposes as departments of the City of La Quinta, and therefore have been
included as an integral part of the primary government.
The government -wide financial statements can be found in the table of contents under
the Financial Section of this report.
0
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 five (35) individual governmental funds, which are
distinguished between major and non -major funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the general fund, two (2)
debt service funds and three (3) capital project funds, and one (1) special revenue fund.
These seven (7) funds are considered to be major funds. Data from the other
twenty-eight (28) governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non -major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of La Quinta adopts an annual appropriated budget for its general fund. A
budgetary comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found in the table of contents
under the heading Basic Financial Statements.
5
Proprietary funds
Proprietary funds can be broken down into enterprise and internal service funds. The
City of La Quinta maintains one (1) enterprise fund. Enterprise funds are used to report
the same functions presented as business -type activities in the government -wide
financial statements. The City of La Quinta uses an enterprise fund to account for its
SilverRock Golf Course operations, which is considered to be a major fund. Internal
service funds are an accounting device used to accumulate and allocate costs internally
among the City of La Quinta's various functions. The City of La Quinta has three (3)
internal service funds to account for its major equipment replacement including vehicles,
for its information technology systems, and for its park equipment and facility needs.
Because these three services predominantly benefit governmental rather than business -
type functions, they have been included within governmental activities in the
government -wide financial statements. The internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is provided in the form of combining statements
elsewhere in this report
The basic proprietary fund financial statements can be found on the pages listed in the
table of contents for Proprietary Funds: Statement of Net Assets, Statement of
Revenues, Expenses and Changes in Net Assets, and Statement of Cash Flows.
Fiduciary funds
Fiduciary funds, also called agency funds, are used to account for resources held for
the benefit of parties outside the government. Fiduciary funds are not reflected in the
government -wide financial statements because the resources of those funds are not
available to support the City of La Quinta's own programs. The accounting used for
fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on the pages listed in the
table of contents for Fiduciary Funds: Statement of Fiduciary Assets and Liabilities —
Agency Funds.
Notes to the financial statements
The notes to the financial statements provide additional information that is essential to a
full understanding of the data provided in the government -wide and fund financial
statements. The notes to the financial statements can be found on the pages listed in
the table of contents for Notes to the Basic Financial Statements.
Other information
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City of
La Quinta's General Fund and its budget appropriations. Required supplementary
0
information can be found in the table of contents under the section Required
supplemental Information and includes Notes to the Required Supplementary
Information and a General Fund Budgetary Comparison Schedule.
The combining statements referred to earlier in connection with non -major
governmental funds, internal service funds, and agency funds are presented
immediately following the required supplementary information. Combining and
individual fund statements and schedules can be found in the table of contents under
Supplementary Schedules.
Government -wide financial analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City of La Quinta, assets exceeded liabilities by
$688,166,000 at the close of the most recent fiscal year, which is $169,755,000 more
than the previous year.
The largest portion of the City of La Quinta's net assets, which was 84% this year and
61 % last year, reflects its investment in capital assets (e.g., land, buildings; machinery,
and equipment); less any related debt used to acquire those assets that is still
outstanding. The City of La Quinta uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending.
Although the City of La Quinta's investment in its capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
City of La Quinta Net Assets
Governmental activities
Business -type activities
Total
2012
2011
2012
2011
2012
2011
Current and other assets
$137,676,930
$224,830,553
$ (4,535,584)
$ (4,676,580)
$133,141,346
$220,153,973
Capital assets
534,388,479
530,713,522
42,274,767
42,777,148
576,663,246
573,490,670
Total assets
672,065,409
755,544,075
37,739,183
38,100,568
709,804,592
793,644,643
Current liabilities
15,880,753
17,142,272
210,308
242,371
16,091,061
17,384,643
Non -current liabilities
5,377,984
257,562,497
169,084
286,097
5,547,068
257,848,594
Total liabilities
21,258,737
274,704,769
379,392
528,468
21,638,129
275,233,237
Net assets:
Invested in capital assets,
net of related debt
534,388,479
276,787,752
42,105,683
42,491,051
576,494,162
319,278,803
Restricted
26, 585, 382
107,042,126
26, 585, 382
107,042,126
Unrestricted
89,832,811
97,009,428
4,745,892
(4,918,951)
85,086,919
92,090,477
Total net assets
$650,806,672
$480,839,306
$ 37,359,791
$37,572,100
$688,166,463
$518,411,406
7
An additional portion of the City of La Quinta's net assets (4 percent versus 21 percent
in the prior year) represents resources that are subject to external restrictions on how
they may be used. The remaining balance of unrestricted net assets - $85,087,000
(12 percent) may be used to meet the government's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of La Quinta is able to report positive
balances in all three categories of net assets, both for the government as a whole, as
well as for its separate governmental activities; however, the business type unrestricted
net assets had a deficit of $4,746,000, which is approximately $200,000 less than the
previous year.
Governmental activities
Governmental activities net assets decreased by $169,967,000 accounting for a
35 percent change in the net assets from the previous year. Key elements of these
changes are as follows:
City of La Quinta Changes in Net Assets
Governmental
Business -type
Activities
Activities
Total
2012
2011
Change
2012 2011
Change 2012
2011
Change
Revenues:
Program revenues:
Charges for services
$ 2,504,302
$ 2,463,488
$ 40,814
$ 3,871,898 $ 3,756,615
$ 115,283 $ 6,376,200
$ 6,220,103
$ 156,097
Operating grants and
contributions
11,289,673
13,152,942
(1,863,269)
- -
- 11,289,673
13,152,942
(1,863,269)
Capital grants and
contributions
9,990,793
3,157,828
6,832,965
- -
- 9,990,793
3,157,828
6,832,965
General revenues:
Property taxes
21,370,476
5,942,353
15,428,123
- -
- 21,370,476
5,942,353
15,428,123
Othertaxes
15,570,619
46,961,932
(31,391,313)
- -
- 15,570,619
46,961,932
(31,391,313)
Investment income
1,925,255
4,693,974
(2,768,719)
1,075 2,125
(1,050) 1,926,330
4,696,099
(2,769,769)
Motor vehicle in lieu
3,173,826
3,515,395
(341,569)
- -
- 3,173,826
3,515,395
(341,569)
Extraordinary gain (loss)
on dissolution of
Redevelopment Agency
158,654,715
-
158,654,715
- -
- 158,654,715
-
158,654,715
Miscellaneous
268,644
3,211,584
2,942,940
268,644
3,211,584
2,942,940
$ 224,748,303
$ 83,099,496
$ 141,648,807
$ 3,872,973 $ 3,758,740
$ 114,233 $ 228,621,276
$ 86,858,236
$ 141,763,040
Total revenues
Expenses:
General government
$ 6,183,712
$ 11,283,358
$ (5,099,646)
$ - $ -
$ - $ 6,183,712
$ 11,283,358
$ (5,099,646)
Public safety
20,815,454
21,070,458
(255,004)
- -
- 20,815,454
21,070,458
(255,004)
Planning and
development
6,378,352
18,715,283
(12,336,931)
- -
- 6,378,352
18,715,283
(12,336,931)
Community services
5,093,402
4,735,964
357,438
- -
- 5,093,402
4,735,964
357,438
Public works
13,288,521
10,757,279
2,531,242
- -
- 13,288,521
10,757,279
2,531,242
Capital contributions
-
31,324,064
(31,324,064)
- -
- -
31,324,064
(31,324,064)
Interest on long-term debt
3,021,496
14,353,359
(11,331,863)
- -
- 3,021,496
14,353,359
(11,331,863)
Golf course
4,085,282 4,202,274
116,992
$ 54,780,937
$ 112,239,765
$ 57,458,828
$ 4,085,282 $ 4,202,274
$ 116,992 $ 54,780,937
$ 112,239,765
$ 57,458,828
Total expenses
Increase in net assets
before transfers and
contributions
$ 169,967,366
$ (29,140,269)
$ 199,107,635
$ (212,309) $ (443,534)
$ 231,225 $ 173,840,339
$ (25,381,529)
$ 199,221,868
Transfers
-
-
-
- -
- -
-
-
Contributions
-
-
-
- -
- -
-
-
Restatements
-
-
-
- -
- -
-
-
Decrease in net assets
169,967,366
(29,140,269)
199,107,635
(212,309) (443,534)
231,225 173,840,339
(25,381,529)
199,221,868
Net assets - 7/1/11
480,839,306
509,979,575
29,140,269)
37,572,100 38,015,634
443,534 518,411,406
547,995,209
29,583,803
$ 650,806,672
$ 480,839,306
$ 169,967,366
$ 37,359,791 $ 37,572,100
$ 212,309 $ 688,166,463
$ 518,411,406
$ 169,755,057
Net assets - 6/30/12
0
• Revenues increased by $141,763,000 with the largest category increases of
$158,655,000 in the extraordinary gain on dissolution of the Redevelopment
Agency and property taxes of $15,428,000. The increases in revenues were
partially offset by a decrease in other taxes of $31,391,000. The major reason for
the net decrease in taxes is due to the loss of tax increment as a result of the
dissolution of the redevelopment agency. The overall increase in total revenues
is also primarily due to the redevelopment agency dissolution which resulted in
an extraordinary gain in the current year.
• Expenses decreased by $57,459,000 with the two largest category changes
being a decrease in the interest on long-term debt category of $11,332,000 and a
decrease in the Capital contributions category of $31,324,000. The decrease in
the interest on long-term debt category is primarily the result of the repayment of
the loans between the City and the former Redevelopment Agency resulting in
less interest income in the current year. The decrease in the Capital
Contributions costs is primarily the result of the dedication of the Wolff Waters
Place Apartments project to the Coachella Valley Housing Coalition
($30,148,000) in the previous fiscal year.
• There were no contributions in assets from the governmental activities to the
business -type activities.
0
Business -type activities
This was the seventh full year of operations for the SilverRock Golf fund since the golf
course began early operation in 2005.
Net assets decreased by $ (212,000) from the effects of an operating loss.
Charges for services primarily consisted of green fees which totaled $3,872,000, and
was $113,000 more than the previous year, with golf course expenses of $4,085,000,
which was $117,000 less than the previous year.
During Fiscal Year 2011-12, no additional advances were required for the golf course
operations. The total outstanding advance due to the General Fund from the inception
of the Golf Course opening is $5,313,000. It is anticipated that these advances will be
repaid from future income from SilverRock activities such as transient occupancy tax,
sales tax and golf course net income generated on the site in future years.
Financial Analysis of the Government's Funds
As noted earlier, the City of La Quinta uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements.
Governmental funds - The focus of the City of La Quinta's governmental funds is to
provide information on near -term inflows, outflows, and balances of fund balances.
Such information is useful in assessing the City of 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.
10
As of the end of the current fiscal year, the City of La Quinta's governmental funds
reported combined ending fund balances of $107.13 million as follows:
Governmental Fund Balances
Category
General Fund
Percent
All Other Funds Percent
Total Funds
Percent
Nonspendable
$23,883,926
26%
$2,092,086
14%
$25,976,012
24%
Restricted
173,426
0%
26,411,956
173%
26,585,382
25%
Committed
19,039,696
21%
-
0%
19,039,696
18%
Assigned
1,041,172
1%
-
0%
1,041,172
1%
Unassigned
47,737,861
52%
(13,248,593)
-87%
34,489,268
32%
Total
$91,876,081
$15,255,449
$107,131,530
Governmental fund balances ended the year totaling $107,132,000, a decrease of
$86,239,000 in comparison with the prior years ending balance of $193,371,000. Of this
amount $25,976,000 or 24% constitutes nonspendable reserves, which means that
these reserves are not available to fund operating expenditures of the organization,
$26,585,000 or 25% are restricted fund balances which are the result of external
limitations on spending, $19,040,000 or 18% are committed fund balances with has
resulted in self-imposed limitations placed upon the funds by the Governing Board
responsible for adopting the fund budget, assigned reserves of $1,042,000 consist of
carryover appropriations which were budgeted for in Fiscal Year 2011-12, but were
unspent and will be budgeted again in the next budget year. The remainder of fund
balance or $34,489,000 million represents unassigned fund balances or the residual net
resources after taking into consideration the other classifications.
General Fund
The general fund is the chief operating fund of the City of La Quinta. At the end of the
current fiscal year, unassigned fund balance of the general fund was $47,738,000, while
total fund balance reached $91,876,000. As a measure of the general fund's liquidity, it
may be useful to compare the total general fund balance to budgeted expenditures
(including transfers out). The total fund balance represents 255 percent of the total
budgeted expenditures.
The City of La Quinta's general fund balance decreased by $1,205,000 in Fiscal Year
2011-2012. Key factors for this increase are as follows:
• Actual expenditures were $2,770,000 less than the final budget. Divisions that
were significantly under budget for the year were Police ($804,000), Fire
($463,000), Street Maintenance ($577,000), Legislative ($162,000) and Capital
outlay ($97,000). In addition, actual transfers out were $148,000 less than
budgeted.
11
• Actual revenue collections were $112,000 more than the final adjusted budget.
Overall, taxes were $867,000 more than budgeted for in Fiscal Year 2011-12,
and the actual taxes collected in Fiscal Year 2011-12 ($21,296,300) was
$974,000 more the prior year tax actual collections of $20,322,000. Actual
transient occupancy tax collections in Fiscal Year 2011-12 were $5,447,000 or
$709,000 more than prior year collections. Actual sales tax collections for Fiscal
Year 2011-2012 were $7,714,000 or $390,000 more than the $7,324,000
collected in Fiscal Year 2010-11. Interest income decreased $2,769,000 from the
prior year due to a combination of historically low interest rates as well as
repayment of the Redevelopment Agency loans. Motor vehicle in lieu taxes
decreased from $3,515,000 in fiscal year 2010-11 to $3,174,000 in 2011-12.
Housing Authority PA No. 2 Fund
The Housing Authority fund is used to account for the housing activities of the Housing
Authority in Project Area No. 2. The primary purpose of this fund is to promote and to
provide quality housing in the City. The fund balance increased by $618,400 to end the
year at $8.1 million.
Capital Improvement Fund
The fund is primarily used to record the expenditure of funds for capital projects. The
fund had thirty nine (39) active Capital Improvement Projects budgeted for during Fiscal
Year 2011-12. The three most active projects during the year were the Adams Street
Bridge Improvements project ($2,603,000), A Street Extension ($1,461,000) and the
Coral Mountain Apartments project ($3,909,000). Other major projects budgeted in the
future include the Pavement Management and Slurry Seal Program, the Sports
Complex Lighting Rehabilitation and Expansion project, and the Americans with
Disabilities Act (ADA) Improvements for City owned properties.
Civic Center Fund
The fund is primarily used to collect developer impact fees for the construction of the
City Hall expansion and the repayment of a portion of the debt service on the original
City Hall construction. The City Hall expansion was completed in Fiscal Year 2007-08
and the final repayment of the original City Hall construction bonds is scheduled in
Fiscal Year 2018-19. A $7.17 million advance from the General Fund is outstanding at
the end of Fiscal Year 2011-12.
Redevelopment Agency Project Area 1 & 2 Debt Service Funds
The Redevelopment Agency Project Area 1 & 2 Debt Service Funds were used to
accumulate resources, primarily property taxes, to pay debt service. With the dissolution
of the Redevelopment Agency per Assembly Bill 1 x26 effective February 1, 2012, the
assets and activities of the dissolved redevelopment agency are reported in a fiduciary
fund (private purpose trust fund) in the financial statements of the City. Therefore, the
fund balances of these two funds is zero at June 30, 2012.
12
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 $1,390,000 increase in appropriations and transfers out
between the original ($34,672,000) and final amended budget ($36,062,000). Following
are the main components of the changes:
• The FY 2011-12 budget included $1,041,000 in carryover appropriations from
FY 2010-11.
• The Fiscal Year included an additional $847,000 in appropriations for Capital
Projects funded by the General Fund during the year.
The budget increases were possible because of additional anticipated revenues and
unassigned reserves and the carryover encumbrances and appropriations were
possible from available net changes in fund balances.
Capital Asset and Debt Administration
Capital assets
The City of La Quinta's investment in capital assets for its governmental and business -
type activities as of June 30, 2012, amounts to $576,663,000 (net of accumulated
depreciation). This investment in capital assets includes land, right of way, buildings
and improvements, machinery and equipment, streets and bridges, and construction in
progress. The investment in capital assets increased this fiscal year from the purchase
of properties which exceeded the depreciation expenses.
The following chart lists the asset categories for governmental and business like
activities net of depreciation.
13
City of La Quinta Capital Assets (net of depreciation)
Governmental
Business -type
Description
Activities
Activities
Total
2012
2011
2012
2011
2012
2011
Land
$ 69, 628, 685
$ 68,139, 567
$ 36, 840, 832
$ 36, 840, 832
$ 106, 469, 517
$ 104, 980, 399
Building and Improvements
50,257,149
52,688,147
4,894,712
5,129,267
55,151,861
57,817,414
Equipment and furniture
612,134
733,492
539,223
807,049
1,151,357
1,540,541
Vehicles
328,874
423,081
-
-
328,874
423,081
Software
-
-
-
-
-
-
Infrastructure
398,368,091
396,782,262
-
-
398,368,091
396,782,262
Construction in Progress
15,193,546
11,946,973
-
-
15,193,546
11,946,973
$ 534, 388, 479
$ 530, 713, 522
$ 42, 274, 767
$ 42, 777,148
$ 576, 663, 246
$ 573, 490, 670
Total
Major capital asset events during the current fiscal year included the following:
Governmental activities
• Recording infrastructure improvements, including developer dedications of
$1,586,000, to street improvements, street right of way, street sidewalks and
curbs and gutters, traffic signals, and street medians;
• Completed the Washington Street Storm Drain Improvements totaling $179,400;
• Completed the La Quinta Sports Complex Rehabilitation in the amount of
$919,500;
• Completed the Traffic Signal and "A" Street Extension ($1,655,900);
• Completed Highway 111 Median Island Landscape Improvements ($1,321,600);
• Completed Eisenhower Drive and Calle Tampico Signal Interconnect ($460,000);
and,
• Purchased land for future development (11,815,000).
Business -type activities
• The Golf Course capital asset balance at June 30, 2012 was $42,275,000 net of
accumulated depreciation. The entire decrease of $502,000 was due to annual
depreciation of the assets.
Additional information on the City of La Quinta's capital assets can be found in
Footnote 6 to the financial statements.
14
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $5,378,000. Of the total amount, $3,895,000 of this debt amount
represents bonds secured solely by specified revenue sources (i.e., tax allocation
bonds); while, $114,340,000 of the debt represents revenue bonds that will be paid from
pledged tax increment property tax housing funds. In addition, $286,000 in capital
equipment leases is outstanding in connection with SilverRock Golf Course and
$78,000 in a copier lease is outstanding in the governmental funds.
City of La Quinta Outstanding Debt
Governmental
Business -type
Activities
Activities
Total
2012
2011
2012 2011
2012
2011
Debt type:
Capital leases
$ 40,088
$ 78,252 $
169,084 $ 286,097 $
209,172
$ 364,349
Compensated absences
941,954
965,921
- -
941,954
965,921
Post retirement healthcare liability
459,644
337,311
- -
459,644
337,311
General liability retrospective deposit
41,298
-
- -
41,298
-
Pass through agreement
-
1,255,242
- -
-
1,255,242
Due to government agencies
-
1,729,383
- -
-
1,729,383
Loans payable
-
1,503,433
- -
-
1,503,433
Tax allocation bonds
-
138,480,000
- -
-
138,480,000
Revenue bonds
3,895,000
114,340,000
- -
3,895,000
114,340,000
$ 5,377,984
$ 258, 689, 542 $
169,084 $ 286,097 $
5,547,068
$ 258, 975, 639
Total
The total outstanding debt decreased by $253,429,000 during Fiscal Year 2011-12.
The decreases were almost entirely due to transfers to the Successor Agency of the
former Redevelopment Agency of $245,287,000 and repayments of principal in the
amount of $7,876,000.
Additional information on the City of La Quinta's long-term debt can be found in notes 7,
8, and 22 of the financial statements.
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta's budget for Fiscal
Year 2012-2013:
• The City of La Quinta had a 6.6 versus 7.5 percent last year unemployment rate.
This rate is significantly lower than the Riverside County and the State-wide
unemployment rate.
• During the last ten years, the City of La Quinta has been in a growth phase with
assessed values increasing from $3.77 billion in Fiscal Year 2001-2002 to
$10.33 billion or over 274 percent. It is important to note however, that from
Fiscal Year 2009-10 to Fiscal Year 2011-2012 assessed values decreased by
$1.42 billion or 12.1 %.
15
• During the current fiscal year, the general fund net loss was $1,205,000 and
$1,041,000 of General fund balance has been assigned for carry over
appropriations.
• AB1x26 dissolved California Redevelopment Agencies as of January 31, 2012.
Due to the loss of Tax Increment, the City's ability to fund future capital projects
has been severely curtailed.
• The Fiscal Year 2012-13 General Fund revenue projections include anticipated
increases for the City becoming a Transportation Uniform Mitigation Fee (TUMF)
collecting organization ($412,500).
• The Fiscal Year 2012-13 budget includes Transient Occupancy Tax increases
due to more focused and successful enforcement of vacation rentals in the
community ($300,000).
• The City of La Quinta adopted a balanced general fund budget for Fiscal Year
2012-13, after applying $2,188,000 in unassigned reserves.
Requests for Information
This financial report is designed to provide a general overview of the City of La Quinta's
finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City of La Quinta, Robbeyn Bird,
Finance Director, P.O. Box 1504, La Quinta, CA, 92247 or by telephone at
760-777-7150.
16
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
JUNE 30, 2012
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Internal balances
Prepaid costs
Deposits
Due from other governments
Inventories
Land held for resale
Long-term retrospective refund
Capital assets not being depreciated
Capital assets, net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Unearned revenue
Deposits payable
Due to other governments
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Planning and development projects
Public safety
Public works
Capital projects
Debt service
Community services
Unrestricted
Total Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ 107,764,618 $ 435,601 $ 108,200,219
387,502
2,415,712
7,978,361
72,776
5,313,025
40,596
132,116
4,994,339
8,320,000
257,885
369,726,852
164,661,627
672,065,409
4,008,184
651,568
54,043
610,233
7,009,804
3,546,921
22,242
128
(5,313,025)
1,865
250,000
67,605
36,840,832
5,433,935
37,739,183
167,718
2,217
4,873
35,500
409,744
2,415,712
7,978,361
72,904
42,461
382,116
4,994,339
67,605
8,320,000
257,885
406,567,684
170,095,562
709,804,592
4,175,902
653,785
54,043
615,106
7,045,304
3,546,921
1,310,040 125,348 1,435,388
4,067,944 43,736 4,111,680
21,258,737
534,388,479
10,767,199
245,187
145,823
4,089,156
175,960
11,162,057
89,832,811
$ 650,806,672
379,392
42,105,683
(4,745,892)
$ 37,359,791
21, 638,129
576,494,162
10,767,199
245,187
145,823
4,089,156
175,960
11,162,057
85,086,919
$ 688,166,463
See Notes to Financial Statements 17
CITY OF LA QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2012
Program
Revenues
Operating
Capital
Charges for Contributions
Contributions
Expenses Services and Grants
and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government
$ 6,183,712 $ 86,869 $
340,375
$ 937,163
Public safety
20,815,454 1,020,822
5,027,467
9,124
Planning and development
6,378,352 68,470
3,269,650
5,912,750
Community services
5,093,402 247,397
62,680
-
Public works
13,288,521 1,080,744
2,589,501
3,131,756
Interest on long-term debt
3,021,496 -
-
-
Total Governmental Activities
54,780,937 2,504,302
11,289,673
9,990,793
Business -Type Activities:
Golf Course
4,085,282 3,871,898
-
-
Total Business -Type Activities
4,085,282 3,871,898
-
-
Total Primary Government
$ 58,866,219 $ 6,376,200 $
11,289,673
$ 9,990,793
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
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
Total General Revenues, Contributions,
Extraordinary Items and Transfers
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
See Notes to Financial Statements 18
Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ (4,819,305)
(14,758,041)
2,872,518
(4,783,325)
(6,486,520)
(3,021,496)
(30,996,169)
$ (4,819,305)
(14,758,041)
2,872,518
(4,783,325)
(6,486,520)
(3,021,496)
(30,996,169)
(213,384) (213,384)
(213,384) (213,384)
(30,996,169) (213,384) (31,209,553)
21,370,476
- 21,370,476
5,446,883
- 5,446,883
7,713,741
- 7,713,741
1,687,440
- 1,687,440
293,592
- 293,592
428,963
- 428,963
3,173,826
- 3,173,826
1,925,255
1,075 1,926,330
268,644
- 268,644
158,654,715
158,654,715
200,963,535 1,075 200,964,610
169,967,366 (212,309) 169,755,057
480,839,306 37,572,100 518,411,406
$ 650,806,672 $ 37,359,791 $ 688,166,463
See Notes to Financial Statements 19
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2012
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Long-term retrospective refund
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Land held for resale
Total Assets
Liabilities and Fund Balances:
Liabilities:
Special Revenue
Funds Capital Projects Funds
Housing
Authority PA No. Capital
General 2 Improvement Civic Center
$ 75,834,824 $ 8,039,919
$ 1,161,731 $ -
36,121
37,958 - -
2,415,712
- - -
257,885
- - -
-
3,867,710 - -
66,003
- - -
27,481
12,875 - -
118,516
13,600 - -
4,658,301
- 115,632 -
14,174
- - -
15,417,929
- - -
8,320,000
- - -
$ 107,166,946 $
11,972,062 $ 1,277,363 $ -
Accounts payable $
3,616,971 $
50
$ 371,080
$ -
Accrued liabilities
639,534
8,086
-
-
Deferred revenues
4,743,978
3,867,710
272,713
-
Unearned revenues
24,699
-
231,798
-
Deposits payable
6,265,683
26,782
492,433
-
Due to other governments
-
-
-
-
Due to other funds
-
-
-
-
Advances from other funds
-
-
-
7,169,490
Total Liabilities
15,290,865
3,902,628
1,368,024
7,169,490
Fund Balances:
Nonspendable:
Prepaid costs
27,481
12,875
-
-
Land held for resale
8,320,000
-
-
-
Notes and loans
-
-
-
-
Advances to other funds
15,417,929
-
-
-
Deposits
118,516
13,600
-
-
Restricted for:
Planning and development projects
-
8,042,959
-
-
Public safety
-
-
-
-
Community services
-
-
-
-
Public works
-
-
-
-
Capital Projects
-
-
-
-
Debt service
173,426
-
-
-
Committed to:
Emergency reserve
17,516,295
-
-
-
Post retirement health benefits
1,523,401
-
-
-
Assigned to:
Continuing appropriations
1,041,172
-
-
-
Unassigned
47,737,861
-
(90,661)
(7,169,490)
Total Fund Balances
91,876,081
8,069,434
(90,661)
(7,169,490)
Total Liabilities and Fund Balances $
107,166,946 $
11,972,062
$ 1,277,363
$ -
See Notes to Financial Statements 20
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2012
Debt Service Funds
Redevelopment Redevelopment
Agency PA No. 1 Agency PA No. 2
Assets:
Other Total
Governmental Governmental
Funds Funds
Pooled cash and investments $ - $ - $ 18,933,523 $ 103,969,997
Receivables:
Accounts
Taxes
Long-term retrospective refund
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Land held for resale
Total Assets $
Liabilities and Fund Balances:
Liabilities:
Accounts payable $
Accrued liabilities
Deferred revenues
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Land held for resale
Notes and loans
Advances to other funds
Deposits
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital Projects
Debt service
Committed to:
Emergency reserve
Post retirement health benefits
Assigned to:
Continuing appropriations
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances $
See Notes to Financial Statements
21
- - 313,423
387,502
- - -
2,415,712
- - -
257,885
- - 4,110,651
7,978,361
- - 5,548
71,551
- - -
40,356
- - -
132,116
- - 220,406
4,994,339
- - -
14,174
- - -
15,417,929
- - -
8,320,000
23,583,551
$ 143,999,922
8,312
$ 3,996,413
- - -
647,620
- - 2,053,922
10,938,323
- - 353,736
610,233
- - 224,906
7,009,804
- - 3,546,921
3,546,921
- - 14,174
14,174
- 2,935,414
10,104,904
- - 9,137,385
36,868,392
40,356
8,320,000
2,065,611
2,065,611
-
15,417,929
-
132,116
2,724,240
10,767,199
245,187
245,187
11,162,057
11,162,057
145,823
145,823
4,089,156
4,089,156
2,534
175,960
17,516,295
1,523,401
1,041,172
(5,988,442) 34,489,268
14,446,166 107,131, 530
$ 23,583,551 $ 143,999,922
THIS PAGE INTENTIONALLY LEFT BLANK
22
CITY OF LA QUINTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2012
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity.
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Bonds payable
Compensated Absences
Governmental funds report all OPEB contributions as expenditures,
however in the statement of net assets any excess or deficiencies
in contributions in relation to the Annual Required Contribution (ARC) are
recorded as an asset or liability.
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds.
Revenues reported as deferred revenue in the governmental funds and recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net assets.
Net assets of governmental activities
$ (3,976,386)
(932,241)
$ 107,131,530
517,190,532
(4,908,627)
(459,644)
(54,043)
10,938,323
20,968,601
$ 650,806,672
See Notes to Financial Statements 23
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2012
Special Revenue
Funds
Capital Projects Funds
Housing Authority
Capital
General
PA No. 2
Improvement
Civic Center
Revenues:
Taxes
$ 21,296,301
$ -
$ -
$ -
Assessments
-
-
-
-
Licenses and permits
482,831
-
-
-
Intergovernmental
8,318,446
489,153
2,425,180
-
Charges for services
626,004
-
-
Use of money and property
575,472
180,348
-
-
Fines and forfeitures
303,773
-
-
-
Developer participation
-
-
101,699
82,490
Miscellaneous
183,912
2,202
-
-
Total Revenues
31,786,739
671,703
2,526,879
82,490
Expenditures:
Current:
General government
4,669,060
-
-
204,787
Public safety
19,619,113
-
-
-
Planning and development
1,207,755
331,314
-
-
Community services
2,566,654
-
-
-
Public works
3,765,860
-
-
-
Capital outlay
170,558
-
13,119,645
-
Debt service:
Principal retirement
38,164
-
-
-
Interest and fiscal charges
7,878
-
-
35,160
Pass -through agreement payments
-
-
-
-
Total Expenditures
32,045,042
331,314
13,119,645
239,947
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(258,303)
340,389
(10,592,766)
(157,457)
Other Financing Sources (Uses):
Transfers in
411,105
-
9,394,375
-
Transfers out
(1,358,275)
-
(47,130)
-
Proceeds from sale of capital asset
-
-
-
-
Total Other Financing Sources
(Uses)
(947,170)
-
9,347,245
-
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
-
7,110,645
-
-
Net Change in Fund Balances
(1,205,473)
7,451,034
(1,245,521)
(157,457)
Fund Balances, Beginning of Year
93,081,554
618,400
1,154,860
(7,012,033)
Fund Balances, End of Year
$ 91,876,081
$ 8,069,434
$ (90,661)
$ (7,169,490)
See Notes to Financial Statements
24
CITY OF LA QUINTA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2012
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Pass -through agreement payments
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Debt Service Funds
Redevelopment Redevelopment
Agency PA No. 1 Agency PA No. 2
$ 16,505,087 $ 9,365,929
(13,122) (15,571)
16,491,965 9,350,358
Other Total
Governmental Governmental
Funds Funds
$ 6,464,706
950,292
4,642,803
9,107
1,187,391
718,955
$ 53,632,023
950,292
482,831
15,875,582
635,111
1,914,518
303,773
903,144
276,327
14,063,467 74,973,601
-
-
8,075
4,881,922
-
-
50,404
19,669,517
428,522
241,543
2,105,512
4,314,646
-
-
1,520,032
4,086,686
-
-
2,426,873
6,192,733
-
-
45,786
13,335,989
3,947,652
380,000
2,700,910
7,066,726
3,386,073
252,757
3,019,211
6,701,079
8,986,409
7,769,032
-
16,755,441
16,748,656
8,643,332
11,876,803
83,004,739
(256,691)
707,026
2,186,664
(8,031,138)
(488,652)
(488,652)
2,749,272 12,554,752
(10,686,063) (12,580,120)
875,275 875,275
(7,061,516) 849,907
(1,267,226) (84,901,674) (79,058,255)
(745,343) (560,200) (89,776,526) (86,239,486)
745,343 560,200 104,222,692 193,371,016
$ - $ - $ 14,446,166 $ 107,131, 530
See Notes to Financial Statements 25
CITY OF LA QUINTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2012
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
Capital outlay $ 13,226,234
Depreciation (8,857,852)
Contributed capital assets (2,094,245)
Gain/(loss) on sale of capital assets 1,230,857
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
Principal repayments 7,025,428
Amortization of bond premiums/discounts (30,013)
Debt issuance costs are expenditures in governmental funds, but these costs
are capitalized on the statement of net assets.
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
Governmental funds report all contributions in relation to the annual required
contribution (ARC) as expenditures, however in the statement of activities
only the ARC is an expense.
Revenues reported as deferred revenue in the governmental funds and recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities.
Extraordinary gains and losses relating to assets and liabilities transferred
to the Successor Agency or County are reported in the statement of
activities do not require the use of current financial resources and, therefore, are not reported in
the governmental funds.
Long-term liabilities 244,116,299
Long-term liabilities which have been absorbed by County 1,171,165
$ (86,239,486)
3,504,994
6,995,415
(118,506)
3,828,102
24,265
(1,374,523)
4,833,280
800,855
Deferred revenue (3,251,160)
Unamortized bond issuance costs (4,323,334) 237,712,970
Change in net assets of governmental activities
$ 169,967,366
See Notes to Financial Statements 26
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Legislative
City Manager
Development Services
Management Services
City Clerk
Fiscal Services
Central Services
Public safety
Police
Building & Safety Admin.
Building
Code Compliance
Animal Control
Civic Center Bldg
Fire
Emergency Services
Planning and development
Administration
Current Planning
Low/Mod Housing
Community services
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 93,081,554 $ 93,081,554 $ 93,081,554 $ -
20,041,930
510,265
8,625,878
527,935
1,293,560
307,200
117,400
135,844
124,641,566
828,109
296,311
1,212,164
1,864,597
493,771
733,728
294,149
12, 712, 089
201,208
534,246
1,069,895
459,697
556,338
5,028,178
185,392
549,177
509,898
8,049
20,428,999
460,265
8,942,083
670,575
718,560
287,000
166,360
412,508
125,167,904
829,309
341,033
1,150,351
1,256,465
476,029
652,917
246,899
12,874,770
191,242
542,144
1,069,895
459,697
607,383
4,998,647
225,392
896,436
500,890
8,049
21,296,301
482,831
8,318,446
626,004
575,472
303,773
183,912
411,105
125,279,398
668,113
372,657
1,139,973
1,163, 379
385,353
723,341
216,244
12,071,222
221,469
589,309
1,001,496
429,930
583,394
4,536,097
186,196
719,678
480,028
8,049
867,302
22,566
(623,637)
(44,571)
(143,088)
16,773
17,552
(1,403)
111,494
161,196
(31,624)
10,378
93,086
90,676
(70,424)
30,655
803,548
(30,227)
(47,165)
68,399
29,767
23,989
462,550
39,196
176,758
20,862
Community Services Admin
914,065
1,036,554
952,886
83,668
Senior Center
380,940
414,260
382,642
31,618
Parks & Recreation
208,357
201,357
191,936
9,421
Park Maintenance
1,077,556
1,077,556
1,039,190
38,366
Public works
Administration
Development Services
Maintenance/Operations - Street
Maintenance/Operations - Lighting
Construction Management
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
474,277
478,012
473,137
4,875
574,764
588,722
574,030
14,692
951,033
1,368,299
791,363
576,936
530,565
530,565
459,461
71,104
1,287,018
1,220,182
1,467,869
(247,687)
55,300
267,330
170,558
96,772
38,164
38,164
38,164
-
7,878
7,878
7,878
-
635,325
1,505,776
1,358,275
147,501
34,672,238
36,062,203
33,403,317
2,658,886
$ 89,969,328
$ 89,105,701
$ 91,876,081
$ 2,770,380
See Notes to Financial Statements 27
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
HOUSING AUTHORITY PA NO. 2
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 618,400
$ 618,400
$ 618,400
$ -
Resources (Inflows):
Intergovernmental
498,200
498,200
489,153
(9,047)
Use of money and property
164,390
164,390
180,348
15,958
Miscellaneous
3,700
3,700
2,202
(1,498)
Transfers in
-
7,110,645
-
(7,110,645)
Amounts Available for Appropriation
1,284,690
8,395,335
1,290,103
(7,105,232)
Charges to Appropriation (Outflow):
Planning and development
385,222
385,232
331,314
53,918
Debt service:
Principal retirement
42,832
42,832
-
42,832
Interest and fiscal charges
196,925
196,925
-
196,925
Transfers out
-
7,033,408
-
7,033,408
Extraordinary gain/(loss) on dissolution
of redevelopment agency
-
-
(7,110,645)
7,110,645
Total Charges to Appropriations
624,979
7,658,397
(6,779,331)
14,437,728
Budgetary Fund Balance, June 30
$ 659,711
$ 736,938
$ 8,069,434
$ 7,332,496
See Notes to Financial Statements 28
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2012
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Deposits
Inventories
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Accrued compensated absences
Bonds, notes, and capital leases
Total Current Liabilities
Noncurrent:
Advances from other funds
Accrued compensated absences
Bonds, notes, and capital leases
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
Business -Type
Governmental
Activities -
Activities -
Enterprise Funds
Internal
Golf Course
Service Funds
$ 435,601
$ 3,794,621
22,242
-
128
1,225
1,865
240
250,000
-
67,605
-
777,441
3,796,086
42, 274, 767
17,197, 947
42,274,767
17,197,947
$ 43,052,208
$ 20,994,033
$ 167,718
$ 11,771
2,217
3,948
4,873
-
35,500
-
-
4,078
125,348
-
335,656
19,797
5,313,025
-
-
5,635
43,736
-
5,356,761
5,635
5,692,417
25,432
42,105,683
17,197,947
(4,745,892)
3,770,654
37, 359,791
20,968,601
$ 43,052,208
$ 20,994,033
See Notes to Financial Statements 29
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30
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2012
Business -Type
Governmental
Activities -
Activities -
Enterprise Funds
Internal
Golf Course
Service Funds
Operating Revenues:
Sales and service charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation expense
Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Interest expense
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues(Expenses)
Income (Loss) Before Contributions
and Transfers
Capital contributions
Transfers in
Changes in Net Assets
Net Assets:
Beginning of Year
End of Fiscal Year
$ 3,871,898 $
1,086,110
-
29,553
3,871,898
1,115,663
62,751
113,729
-
91,233
-
74,179
3,416,655
93,174
-
105,841
502,381
804,420
68,813
8,934
4,050,600
1,291,510
(178,702)
(175,847)
1,075
10,737
(34,682)
-
-
3,434
(33,607) 14,171
(212,309) (161,676)
937,163
25,368
(212,309) 800,855
37,572,100 20,167,746
$ 37,359,791 $ 20,968,601
See Notes to Financial Statements 31
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2012
Cash Flows from Operating Activities:
Cash received from customers and users
Cash received from/(paid to) interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
Advance from other funds
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Business -Type
Governmental
Activities -
Activities -
Enterprise Funds
Internal
Golf Course
Service Funds
$ 3,884,814
$ 1,115,423
(6,263)
-
(3,503,102)
(441,476)
(62,696)
(113,337)
312,753
560,610
25,368
(94,302) -
(94,302) 25,368
(117,013)
(34,682)
(37,223)
3,434
(151,695) (33,789)
1,180 11,827
1,180 11,827
67,936 564,016
367,665 3,230,605
$ 435,601 $ 3,794,621
See Notes to Financial Statements 32
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2012
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds
Business -Type
Governmental
Activities -
Activities -
Enterprise Funds
Internal
Golf Course
Service Funds
$ (178,702)
$ (175,847)
502,381
804,420
9,275
-
11,862
-
-
(240)
1,741
(68,115)
55
94
(37,500)
-
3,641
-
-
298
491,455
736,457
$ 312,753
$ 560,610
$ -
$ 937,163
See Notes to Financial Statements 33
CITY OF LA QUINTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2012
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Due from other governments
Deferred charges
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities:
Accounts payable
Accrued interest
Deposits payable
Long-term liabilities:
Due in one year
Due in more than one year
Total Liabilities
Net Assets:
Held in trust for pension
Held in trust for other purposes
Total Net Assets
Pension Trust
Private -Purpose
Fund
Trust Fund
Successor
Agency
Supplemental
Agency of the
Funds
Pension Plan
former RDA
$
550,232
$ 187,924
$
23,193,145
-
-
21,000
9,041
-
-
-
-
3,251,160
164
63
9,300
-
-
3,546,921
-
-
4,238,688
-
-
57,077,193
$
559,437
$ 187,987
$
91,337,407
$
-
$ -
$
251,039
-
-
3,778,175
559,437
-
-
-
-
5,876,783
-
-
238,242,606
$
559,437
$ -
$
248,148,603
$
-
$ 187,987
$
-
-
-
(156,811,196)
$
-
$ 187,987
$
(156,811,196)
See Notes to Financial Statements 34
CITY OF LA QUINTA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2012
Additions:
Contributions:
Employers
Taxes
Interest and change in fair value of investments
Total Additions
Deductions:
Administrative expenses
Interest expense
Contributions to other governments
Total Deductions
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
Changes in Net Assets
Net Assets - Beginning of the Year
Net Assets - End of the Year
Pension Trust Private -Purpose
Fund
Trust Fund
Successor
Supplemental
Agency of the
Pension Plan
former RDA
$ 200,054
$ -
-
13,231,246
766
53,827
200,820
13,285,073
12,833
959,782
-
10,804,220
-
848,717
12,833
12,612,719
-
(157,483,550)
187,987
(156,811,196)
$ 187,987
$ (156,811,196)
See Notes to Financial Statements 35
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36
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Reporting Entity
The City of La Quinta (City) was incorporated May 1, 1982, under the general laws of the
State of California. In November 1996, the City became a charter City. The City
operates under the Council — Manager form of government.
The City provides many community services including public safety, highway and street
maintenance, health and social services, cultural and leisure services, public
improvements, planning and zoning services, and community development services.
The accounting policies of the City conform to generally accepted accounting principles
as applicable to governments. As required by generally accepted accounting principles,
these financial statements present the government and its component units, which are
entities for which the government is considered to be financially accountable. The City is
considered to be financially accountable for an organization if the City appoints a voting
majority of that organization's governing body and the City is able to impose its will on
that organization or there is a potential for that organization to provide specific financial
benefits to or impose specific financial burdens on the City. The City is also considered
to be financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval
from the City). In certain cases, other organizations are included as component units if
the nature and significance of their relationship with the City are such that their exclusion
would cause the City's financial statements to be misleading or incomplete.
All of the City's component units are considered to be blended component units. Blended
component units, although legally separate entities, are, in substance, part of the
government's operations and so data from these units are reported with the interfund
data of the primary government.
The following organizations are considered to be component units of the City:
La Quinta Redevelopment Agency
The La Quinta Redevelopment Agency (Agency) has established two redevelopment
project areas pursuant to the State of California Health & Safety Code, Section
33000 entitled "Community Redevelopment Law". On November 29, 1983 and
May 16, 1989, the City Council approved and adopted the Redevelopment Plans for
the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These
plans provide for the elimination of blight and deterioration, which was found to exist
in the project areas. Although the Agency is legally separate, it is reported as if it
were part of the City because the City Council also serves as the governing board of
the Agency. The redevelopment agency was dissolved as of January 31, 2012
through the Supreme Court decision on Assembly Bill 1X 26. See Note 21 for more
information on the dissolution."
37
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Financing Authority) was established
pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991,
between the City and the Agency. The purpose of the Financing Authority is to
provide financing necessary for the construction of various public improvements
through the issuance of debt. Although the Financing Authority is legally separate, it
is reported as if it were part of the City because the City Council also serves as the
governing board of the Financing Authority. Separate financial statements of the
Financing Authority are not prepared.
City of La Quinta Housing Authority
The La Quinta Housing Authority (Housing Authority) was established pursuant to
California Housing Authorities Law (Health and Safety Code Sections 34200 et seq.)
on September 15, 2009. The purpose of the Housing Authority is to provide safe and
sanitary housing opportunities for La Quinta residents. Although the Housing
Authority is legally separate, it is reported as if it were part of the City because the
City Council also serves as the governing board of the Housing Authority. Separate
financial statements of the Housing Authority are not prepared.
b. Government -Wide and Fund Financial Statements
The basic financial statements of the City are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the financial statements
Financial reporting is based upon all GASB
Statements and Interpretations, APB Opinions,
were issued on or before November 30, 1989,
GASB pronouncements.
Government -wide Financial Statements
pronouncements, as well as the FASB
and Accounting Research Bulletins that
that does not conflict with or contradict
The government -wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. All fiduciary activities are reported only
in the fund financial statements. Governmental activities, which normally are
supported by taxes, intergovernmental revenues, and other nonexchange
transactions, are reported separately from business -type activities, which rely to a
significant extent on fees and charges to external customers for support. Likewise,
the primary government is reported separately from certain legally separate
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of
a given function or segments are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. Program
revenues include charges for services, special assessments, and payments made by
parties outside of the reporting government's citizenry if that money is restricted to a
particular program. Program revenues are netted with program expenses in the
38
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
statement of activities to present the net cost of each program. Taxes and other items
not properly included among program revenues are reported instead as general
revenues. Amounts paid to acquire capital assets are capitalized as assets in the
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, liabilities, fund equity, revenues and expenditures
or expenses, as appropriate. Governmental resources are allocated to and
accounted for in individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled.
Fund financial statements for the governmental, proprietary, and fiduciary funds are
presented after the government -wide financial statements. These statements display
information about major funds individually and nonmajor funds in the aggregate for
governmental and enterprise funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds of the
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.
39
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related
goods or services are provided). Locally imposed delivered tax revenues are
recognized as revenues in the period in which the underlying exchange transaction
on which they are based takes place. Imposed nonexchange transactions are
recognized as revenues in the period for which they were imposed. If the period of
use is not 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 and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources". Governmental fund operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses)
in net current assets. Accordingly, they are said to present a summary of sources
and uses of "available spendable resources" during a period.
Noncurrent portions of long-term receivables due to governmental funds are reported
on their balance sheets in spite of their spending measurement focus. Special
reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources", since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then from unrestricted
resources.
40
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
Proprietary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund
financial statements, proprietary funds are presented using the accrual basis of
accounting. Revenues are recognized when they are earned and expenses are
recognized when the related goods or services are delivered. In the fund financial
statements, proprietary funds are presented using the economic resources
measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with their activity are included on their balance sheets.
Proprietary fund type operating statements present increases (revenues) and
decreases (expenses) in total net assets.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary
fund financial statements, rather than reported as expenditures. Proceeds of
long-term debt are recorded as a liability in the proprietary fund financial statements,
rather than as another financing source. Amounts paid to reduce long-term
indebtedness of the proprietary funds are reported as a reduction of the related
liability, rather than as expenditures.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the Enterprise Funds are
charges to customers for sales and services.
Operating expenses for Enterprises Funds include the cost of sales and services,
administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Private -sector standards of accounting and financial reporting issued prior to
December 1989, generally are followed in both the government -wide and proprietary
fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments
also have the option of following subsequent private -sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The
government has elected not to follow subsequent private -sector guidance.
Fiduciary Funds
The pension and private -purpose trust funds are reported using the economic
resources measurement focus and the accrual basis of accounting. The agency fund
has no measurement focus but utilizes the accrual basis of accounting for reporting
its assets and liabilities.
d. Major Funds, Internal Service Funds and Fiduciary Fund Types
The City's major governmental funds are as follows:
General Fund — This fund is the primary fund of the City and is used to account for all
revenue and expenditures of the City not legally restricted as to use. A broad range
of municipal activities are provided through this fund including City Manager, City
Attorney, Finance, City Clerk, Community Development, Police Services, Public
Works, Building and Safety, and Community Services.
41
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
Housing Authority Project Area No. 2 — To account for the housing activities of the
Housing Authority in Project Area 2 which is to promote and provide for quality
housing.
Capital Improvement Fund — This capital projects fund is used to account for the
planning, design and construction of various capital projects throughout the City and
the Agency.
Civic Center Fund — To account for the accumulation of resources provided through
developer fees for the acquisition, construction, or improvement of the Civic Center.
Redevelopment Agency Project Area No. 1 - Debt Service Fund — This debt service
fund is used to account for the accumulation of resources for the payment of debt
service for bond principal and interest and trustee fees for Project Area No. 1.
Redevelopment Agency Project Area No. 2 - Debt Service Fund — This Debt service
fund is used to account for the accumulation of resources for the payment of debt
service for bond principal, interest and trustee fees for Project Area No. 2.
The City's major proprietary fund is as follows:
Golf Course — To account for the activities of the SilverRock Golf Resort.
Other fund types of the City are as follows:
Internal Service Funds:
Equipment Replacement Fund — This fund accounts for equipment and vehicle
maintenance and replacement services provided to other departments on a
cost -reimbursement basis.
Information Technology Fund — This fund is used to account for the acquisition
for computer equipment, maintenance, and services to support information
systems within the City. Costs are reimbursed by the benefiting departments.
Park Equipment and Facilities Fund — This fund is used to account for the
purchase and replacement of City owned park facility infrastructure. Costs are
reimbursed by the benefiting departments.
Fiduciary Funds:
Agency Fund — This fund accounts for assets held by the City as an agency for
assessment district bondholders.
Pension Trust Fund — This fund accounts for the activities of the Supplemental
Pension Savings Plan, which accumulates resources for pension benefit
payments to qualified government employees.
Private -Purpose Trust Fund — This fund accounts for the assets and liabilities of
the former redevelopment agency and is allocated revenue to pay estimated
installment payments of enforceable obligations until obligations of the former
redevelopment agency are paid in full and assets have been liquidated.
42
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
e. Assets, Liabilities and Net Assets or Equity
Investments
For financial reporting purposes, investments are adjusted to their fair value.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments. Some investments are valued on an unamortized cost basis. For these
investments, there is no material difference from fair value.
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash and
investment balance.
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as
short-term, highly liquid investments that are both readily convertible to known
amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary fund's share in the cash and investment pool of the City of
La Quinta. Cash equivalents have an original maturity date of three months or less
from the date of purchase. For purposes of the statement of cash flows, the entire
balance of cash and investments on the combined balance sheet for the proprietary
funds is considered cash and cash equivalents.
Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses
the consumption method of accounting for inventories.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government -wide and fund financial
statements. The City utilizes the consumption method, in which prepaid items are
accounted for in the period that the benefit was received.
Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist.
Contributed capital assets are valued at their estimated fair market value at the date
of the contribution. Generally, capital asset purchases in excess of $5,000 are
capitalized if they have an expected useful life of three years or more.
Capital Assets include public domain (infrastructure) consisting of certain
improvements including roads, streets, sidewalks, medians, and storm drains.
43
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
Capital assets used in operations are depreciated over their estimated useful lives
using the straight-line method in the 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
Compensated Absences
Sick time is vested on a percentage based on number of years employed at the City.
Maximum accumulation of sick and vacation is 30 and 40 days, respectively.
Upon termination or retirement, permanent employees are entitled to receive
compensation at their current base salary for all unused vacation leave. If an
employee terminates with a minimum of two years service, the employee is entitled to
receive 25% of the value of his unused sick leave. The percentage increases by
25% for each five-year period until the employee is entitled to 75% of the value of his
unused sick leave. This will occur upon the completion of ten years of continuous
employment.
Fund Balance
In the fund financial statements, governmental funds report the following fund
balance classification:
Nonspendable includes amounts that cannot be spent because they are either (a) not
in spendable form or (b) legally or contractually required to be maintained intact.
Restricted includes amounts that are constrained on the use of resources by either
(a) external creditors, grantors, contributors, or laws of regulations of other
governments or (b) by law through constitutional provisions or enabling legislation.
Committed includes amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the government's highest authority, the City
Council. The formal action that is required to be taken to establish, modify, or rescind
a fund balance commitment is by resolution.
Assigned includes amounts that are constrained by the government's intent to be
used for specific purposes, but are neither restricted nor committed. City Council is
authorized to assign amounts to a specific purpose.
Unassigned includes the residual amounts that have not been restricted, committed,
or assigned to specific purposes.
44
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 1: Summary of Significant Accounting Policies (Continued)
The City Council adopts and amends committed fund balance amounts through a
resolution. The City Council authorizes assigned amounts for specific purposes
pursuant to the policy -making powers granted through a resolution. When an
expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the City considers restricted amounts to be used first, then
unrestricted. When an expenditure is incurred for purposes for which amounts in any
of the unrestricted fund balance classifications could be used, they are considered to
be spent in the following order: committed, assigned and then unassigned.
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds. The City manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department or funds that are
approved by City Council. Prior year appropriations lapse unless they are approved
for carryover into the following fiscal year. Expenditures may not legally exceed
appropriations at the department level. Budgets were not adopted for the
Development Agreement funds.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods
and services. These commitments are recorded for budgetary control purposes in
the General, Special Revenue, and similar governmental funds. Encumbrances
outstanding at year-end are reported as an unassigned fund balance. They
represent the estimated amount of the expenditure ultimately to result if unperformed
contracts in process at year end are completed. They do not constitute expenditures
or estimated liabilities.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
45
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 2: Stewardship, Compliance and Accountability (Continued)
b. At June 30, 2012, the following funds had deficit fund balances:
Major Capital Projects Funds:
Capital Improvement $ 90,661
Civic Center 7,169,490
Nonmajor Special Revenue Funds:
Federal Assistance
8,882
Nonmajor Capital Projects Funds:
Parks and Recreation
1,183,816
Library Development
1,860,330
Street Facility
2,021,772
Fire Facility
913,642
c. Excess of expenditures over appropriations are as follows:
Expenditures for the year ended June 30, 2012, exceeded the appropriations of the
General Fund as follows:
General Fund:
General Government
City Manager
Fiscal Services
Public Safety
Building & safety admin
Building
Public Works
Construction management
Budget
$ 341,033
652,917
191,242
542,144
1,220,182
Actual Variance
$ 372,657
723,341
221,469
589,309
III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
1,467,869
$ 31,624
70,424
30,227
47,165
247,687
Cash and investments as of June 30, 2012, are classified in the accompanying financial
statements as follows:
Statement of Net Assets:
Cash and investments $ 108,200,219
Statement of Fiduciary Net Assets:
Cash and investments 23,931,301
Cash with fiscal agent 57,077,193
Total cash and investments $ 189,208,713
46
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 3: Cash and Investments (Continued)
Cash and investments as of June 30, 2012, consist of the following:
Cash on hand $ 1,905
Deposits with financial institutions 453,410
Investments 188,753,398
Total cash and investments $ 189,208,713
The California Government Code requires California banks and savings and loan
associations to secure a City's deposits by pledging government securities with a value of
110% of a City's deposits. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total
deposits. The City Treasurer may waive the collateral requirement for deposits which are fully
insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered
banks is held in safekeeping by an authorized Agent of Depository recognized by the State of
California Department of Banking. The collateral for deposits with savings and loan
associations is generally held in safekeeping by the Federal Home Loan Bank in
San Francisco, California as an Agent of Depository. These securities are physically held in
an undivided pool for all 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.
A provision of the Dodd -Frank Wall Street Reform and Consumer Protection Act provides
temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts
at all FDIC -insured institutions. This provision was effective from December 31, 2010 and will
remain effective until December 31, 2012. Noninterest-bearing transaction accounts is
defined as an account (1) with respect to which interest is neither accrued nor paid; (2) on
which the depositor or account holder is permitted to make withdrawals by negotiable or
transferable instrument, payment orders of withdrawal, telephone or other electronic media
transfers, or other similar items for the purpose of making payments or transfers to
third parties or others; and (3) on which the FDIC -insured depository institutions does not
reserve the right to require advance notice of an intended withdrawal. As of June 30, 2012,
the City maintains cash deposits that are temporarily covered by this provision.
Cash Deposits
At June 30, 2012, the carrying amount of the City's deposits was $453,410, and the bank
balance was $1,181,777. The $728,367 difference represents outstanding checks and other
reconciling items.
Investments Authorized by the California Government Code and the Entity's Investment
Policy
The table below identifies the investment types that are authorized by the California
Government Code and the City's investment policy. The table also identifies certain
provisions of the California Government Code (or the City's investment policy, if more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This
table does not address investments of debt proceeds held by bond trustee that are governed
by the provisions of debt agreements of the City, rather than the general provisions of the
California Government Code or the City's investment policy.
47
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 3: Cash and Investments (Continued)
*Maximum
*Maximum Investment
Investment Types
*Maximum
Percentage of
In One
Authorized by State Law
Maturity
Portfolio
Issuer
U.S. Treasury Obligations
10 years
None
$30 million
U.S. Agency Securities
3 years
None
$30 million
Local Agency Bonds
10 years
None
$30 million
California Local Agency Obligations
10 years
30%
$30 million
Commercial Paper
90 days
15%
$5 million
Certificates of Deposit
3 years
60%
$250,000
Medium -Term Notes
3 years
10%
$5 million
Money Market Mutual Funds
60 days
20%
10%
Local Agency Investment Fund (LAIF)
N/A
30%
$40 million
Investment Agreements
N/A
N/A
N/A
* Based on state law requirements or investment policy requirements,
Disclosures 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:
Remaining Maturity (in Months)
6 Months 6 Months to 1
Investment Type
Total
or Less Year 1 to 3 Years
U.S. Treasury notes
$ 29,986,384
$ 29,986,384 $ $
U.S. Treasury bills
1,999,744
1,999,744 -
Certificates of Deposit
724,000
484,000 240,000
Federal agency securities:
Federal Home Loan Bank
8,998,321
8,998,321 -
Commercial paper
11,997,202
11,997,202 -
Rabobank
39,959,692
39,959,692 -
State investment pool
38,010,862
38,010,862 -
Held by bond trustee:
Money market funds
57,077,193
57,077,193 -
Total
$ 188,753,398
$ 188,513,398 $ $ 240,000
48
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 3: Cash and Investments (Continued)
Disclosures Relatina to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The City's investment policy limits investments in
commercial paper to those rated A-1 and 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, 2012, the City had investments with a variety of issuers, all of which were
"investment grade" and were legal under state and municipal law. The City's investments in
money market mutual funds were all rated "AAA", federal agency securities were all rated
AA+, and commercial paper were rated A-1 by S&P and Moody's. As of June 30, 2012, the
City's investments in external investment pools were unrated.
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested
in any one issuer beyond that stipulated by the California Government Code, except for
U.S. Agency Securities and Commercial Paper. As of June 30, 2012, the City had no
individual investments that represent 5% or more of total investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments,
other than the following provision for deposits: The California Government Code requires
that a financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state
law (unless so waived by the governmental unit). The market value of the pledged securities
in the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure City deposits by pledging
first trust deed mortgage notes having a value of 150% of the secured public deposits.
The City has money market accounts (MMA's) with Rabobank, N.A. These Accounts are the
financial obligations of the bank, and are collateralized with government securities at 110% of
the balance on deposit. As of June 30, 2012, the City's investments of $39,959,692 were
collateralized in accordance with the California Government Code.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of 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.
49
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 3: Cash and Investments (Continued)
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards (e.g. mark to market) for investments in participating interest
earning investment contracts, external investment pools, equity securities, option contracts,
stock warrants and stock rights that have readily determinable fair values. Accordingly, the
City reports its investments at fair value in the balance sheet. All investment income,
including changes in the fair value of investments, is recognized as revenue in the operating
statement.
Note 4: Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 % of
assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of La Quinta accrues only those taxes that are received from the County
within ninety days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
Note 5: Notes Receivable
In September 1994, the Agency sold certain real property to LINC Housing for $2,112,847.
The property was used to construct single-family homes and rental units to increase the City's
supply of low and moderate income housing. The note bears interest at 6% per annum and
is due in full on June 15, 2029. On February 1, 2012, this receivable was transferred to the
Housing Authority Project Area No. 1 which took over the housing function of the Agency
upon dissolution. The balance at June 30, 2012, including matured, unpaid interest of
$2,045,041 is $4,080,429.
In February 2011, the Agency entered into Disposition and Development Agreement with
Coral Mountain Partners L.P. ("Coral Mountain") to fund up to $29,000,000 for the
construction of a low and moderate income apartment complex with an estimated completion
date of the apartment complex of March 2015. The Agency's $29,000,000 loan is evidenced
by a Promissory Note executed by Coral Mountain ("Note"). Interest on the outstanding note
amount will bear simple interest of 1%. Principal and interest will be repaid on or before
May Vt of each year from annual residual receipts as defined in the Note once the project is
completed and may be repaid early if the property is refinanced, or if the property is
transferred to another entity. On February 1, 2012 this receivable was transferred to the
Housing Authority Project Area No. 2 which took over the housing function of the Agency
upon dissolution. As of June 30, 2012, the outstanding principal portion on the Note is
$3,852,309 and the outstanding interest portion is $15,401.
Other notes receivable as of February 1, 2012 were transferred to the Housing Authority
Project Area No. 1 which took over the housing function of the Agency upon dissolution that
totaled $30,222 at June 30, 2012.
50
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 6: Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2012, is as
follows:
Beginning
Ending
Balance at
Balance at
July 1, 2011
Additions
Deletions
Transfers
June 30, 2012
Governmental Activities:
Capital assets, not being depreciated:
Land
$ 68,139,567
$ -
$ 175,000
$ 1,664,118
$ 69,628,685
Right of way
284,904,621
-
-
-
284,904,621
Construction -in -progress
11,946,973
13,119,645
1,516,216
(8,356,856)
15,193,546
Total Capital Assets,
Not Being Depreciated
364,991,161
13,119,645
1,691,216
(6,692,738)
369,726,852
Capital assets, being depreciated:
Buildings and improvements
69,282,702
-
1,151,129
1,016,140
69,147,713
Equipment and furniture
2,260,348
37,225
18,981
20,000
2,298,592
Vehicles
1,656,948
27,810
86,220
-
1,598,538
Infrastructure
189,478,798
2,135,799
127,007
5,656,598
197,144,188
Total Capital Assets,
Being Depreciated
262,678,796
2,200,834
1,383,337
6,692,738
270,189,031
Less accumulated depreciation:
Buildings and improvements
16,594,555
2,350,684
54,675
-
18,890,564
Equipment and furniture
1,526,856
178,583
18,981
-
1,686,458
Vehicles
1,233,867
122,017
86,220
-
1,269,664
Infrastructure
77,601,157
6,206,568
127,007
-
83,680,718
Total Accumulated
Depreciation
96,956,435
8,857,852
286,883
-
105,527,404
Total Capital Assets,
Being Depreciated, Net
165,722,361
(6,657,018)
1,096,454
6,692,738
164,661,627
Governmental Activities
Capital Assets, Net
$ 530,713,522
$ 6,462,627
$ 2,787,670
$ -
$ 534,388,479
Depreciation expense was charged to the following functions in the Statement of Activities:
General government $ 128,315
Public safety 1,178,150
Community services 500,509
Public works 7,050,878
Total governmental activities $ 8,857,852
51
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 6: Capital Assets (Continued)
Capital asset activity for business -type activities for the year ended June 30, 2012, is as
follows:
Business -Type Activities:
Capital assets, not being depreciated:
Land
Total Capital Assets,
Not Being Depreciated
Capital assets, being depreciated:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Capital Assets,
Being Depreciated
Less accumulated depreciation:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Accumulated
Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities
Capital Assets, Net
Beginning
Ending
Balance at
Balance at
July 1, 2011
Additions Deletions
June 30, 2012
$ 36,840,832
$ - $ -
$ 36,840,832
36,840,832
- -
36,840,832
6,636,465
- -
6,636,465
2,073,478
- -
2,073,478
20,348
- -
20,348
20,255
- -
20,255
8,750,546
- -
8,750,546
1,507,198
234,555 -
1,741,753
1,266,430
267,826 -
1,534,256
20,347
- -
20,347
20,255
- -
20,255
2,814,230
502,381 -
3,316,611
5,936,316
(502,381) -
5,433,935
$ 42,777,148
$ (502,381) $ -
$ 42,274,767
Depreciation expense was charged to the following function in the Statement of Activities:
Golf Course $ 502,381
52
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 7: Changes in Long -Term Liabilities — Governmental Activities
a. Changes in Long -Term Debt
The following is a summary of changes in governmental long-term liabilities of the City for
the fiscal year ended June 30, 2012:
City:
Compensated absences payable $
Copier Lease Payable
OPEB Liability
General liability retrospective
deposit payable
Redevelopment Agency:
RDA Project Area No. 1:
Tax allocation bonds
Pass -through agreements:
Coachella Valley
Unified School District
RDA Project Area No. 2:
Tax allocation bonds
Due to County of Riverside
Provident Loan
US Department of Agriculture
Financing Authority
Transfers to
Balance at Successor Balance at Due within
July 1, 2011 Additions Deletions Agency* June 30, 2012 one year
965,921
78,252
337,311
126,925,000
1,255,242
$ 775,985 $ 799,952 $ - $ 941,954 $ 799,952
- 38,164 - 40,088 40,088
122,333 - 459,644 -
41,298 - - 41,298 -
- 3,540,000 (123,385,000) - -
- 1,255,242 - -
11,555,000
130,000 (11,425,000) - -
1,000,000
1,000,000 - -
1,503,433
17,148 (1,486,285) - -
729,383
7,337 (722,046) - -
Revenue bonds 114,340,000 - 2,250,000 (108,195,000) 3,895,000 470,000
Unamortized premiums/discounts (1,127,045) 33,293 3,280 1,097,032
Total $ 257,562,497 $ 972,909 $ 9,041,123 $ (244,116,299) $ 5,377,984 $1,310,040
* As a result of the dissolution of the redevelopment agency, indebtedness of the former redevelopment agency was transferred to the
Successor Agency. See Note 22 for disclosures for indebtedness.
As a result of the dissoultion of the redevelopment agency, amounts due to the County and for pass -through agreements
were transferred to the County and therefore the obligation has been included above as a deletion in the amount of
$1,171,165.
b. A description of individual issues of debt (excluding defeased bonds) outstanding
as of June 30, 2012, is as follows:
Copier Lease Payable
In June 2008, the City entered into a 5-year lease agreement for photocopiers for
$182,094 maturing in monthly increments ranging from $2,682 in July 2008 to $3,417 in
June 2013, with interest payable monthly at 4.93%. This lease agreement qualifies as a
capital lease for accounting purposes and therefore, has been recorded at the present
value of the future minimum lease payments at the inception date.
53
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum future lease obligations and the net present value of the lease payments as
of June 30, 2012, are as follows:
Year Ending
June 30, Total
2013 $ 44,358
Total Payments 44,358
Less amount representing sales tax (3,034)
Less amount representing interest (1,236)
Outstanding Principal $ 40,088
1996 Lease Revenue Refunding Bonds
On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue
Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in
the amount of $8,200,000 and to provide funds for construction of remaining
improvements to the La Quinta Civic Center site.
The bonds consist of $3,630,000 of serial bonds and $5,150,000 of term bonds. The
serial bonds will accrue interest at rates between 3.70% and 5.30% and principal
amounts mature between October 1, 1997 and October 1, 2008, in amounts ranging
from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and
mature on October 1, 2018.
A surety agreement has been purchased to satisfy the bond reserve requirement.
There are certain limitations regarding the issuance of parity debt as further
described in the official statement. The amount of principal outstanding at
June 30, 2012, is $3,895,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ 470,000
$ 203,130
2014
495,000
176,351
2015
525,000
148,046
2016
555,000
118,076
2017
585,000
86,441
2018-2022
1,265,000
71,179
Totals
$ 3,895,000
$ 803,223
54
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Pass -through Agreements Payable - Coachella Valley Unified School District
An agreement was entered into in 1991 between the former redevelopment agency,
the City of La Quinta and the Coachella Valley Unified School District (District), which
provides for the payment to the District a portion of tax increment revenue associated
with properties within District confines. Such payments are subordinate to other
indebtedness of the former redevelopment agency incurred in furtherance of the
Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District
over a payment schedule through August 1, 2012, in amounts ranging from $421,168
to $834,076, for a total amount of $15,284,042. Due to the dissolution of the former
redevelopment agency of the City of La Quinta this debt has been transferred to the
County of Riverside due to no future Tax increment payments. There is no
outstanding balance at June 30, 2012
Due to County of Riverside - Project Area No. 2
Based on an agreement dated July 5, 1989, between the former redevelopment
agency and the County of Riverside, until the tax increment reaches $5,000,000
annually in Project Area No. 2, the Agency will pay to the County 50% of the County
portion of tax increment. At the County's option, the County's pass -through portion
can be retained by the Agency to finance new County facilities or land costs that
benefit the County and serve the La Quinta population. Due to the dissolution of the
former redevelopment agency of the City of La Quinta this debt has been transferred
to the County of Riverside due to no future Tax increment payments. There is no
outstanding balance at June 30, 2012
CJPIA Retrospective Deposit Liability
Retrospective deposits and refunds are cost allocation adjustments to prior coverage
periods. Some claims take many years to resolve and over time their estimated value
changes. The retrospective adjustments are calculated annually and take into
consideration all the changes in claim values that occurred during the most recent
year. The formula is designed to adequately cover the cost of claims brought against
members and to ensure the overall financial strength and security of the Authority.
The formula was developed to be as equitable as possible by taking into
consideration both risk exposure and claims experience of individual members.
CJPIA has temporarily deferred the payment on retrospective deposits owed to the
Authority by members. The payment deferral period extends until July 1, 2013 for the
Liability program and July 1, 2015 for the Workers' Compensation program.
Retrospective deposit payments are scheduled to resume on these dates. The
October 2011 annual retrospective adjustment is included in these balances
Optional Payment Plans
When retrospective deposit payments resume as indicated above, members will
have the opportunity to select from a variety of optional payment plans.
Discounts under the incentive plan are available to members choosing to
voluntarily accelerate payment during the deferral period. The City has chosen
not to voluntarily accelerate payment at this time.
After the deferral period, members choosing from among the optional payment
plans will be subject to a moderate annual fee. The fee is intended to provide a
means for the Authority to recover otherwise foregone investment earnings and
to serve as a minor disincentive for the selection of longer financing terms.
55
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Retrospective Balances will Change Annually
Retrospective balances will change with each annual computation during the
payment deferral period. Member balances may increase or decrease as a result
of the most recent year's claim development.
Accordingly, some members who chose to pay off their balance in full may be
required to pay additional retrospective deposits in the future based on the
outcome of actual claim development reflected in subsequent retrospective
deposit computations. Conversely, if claim development is favorable then
subsequent retrospective adjustments could potentially result in refunds to the
member.
More information on the CJPIA retrospective balances can be found on the
CJPIA website at CJPIA.org. At June 30, 2012 the retrospective amount due was
$41,298.
Note 8: Changes in Long -Term Liabilities — Business -type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2012, were as
follows:
Balance at Balance at Due within
July 1, 2011 Additions Deletions June 30, 2012 one year
Golf Course:
Capital leases payable $ 286,097 $ - $ 117,013 $ 169,084 $ 125,348
The City of La Quinta entered into several capital lease agreements for the operation of the
Silver Rock Golf Resort. These lease agreements qualify as capital leases for accounting
purposes and, therefore, have been recorded at the present value of their future minimum
lease payments as of the inception date.
Obligations under capital leases are as follows:
Wells Fargo Financial Leasing, Inc.
The present value of the minimum lease payments on golf carts was
capitalized using an incremental borrowing rate of 6.90% at the inception of
the lease. The lease is payable in 33 monthly installments of $11,166 which
began February 1, 2011. $ 169,084
Total capital leases payable as of June 30, 2012 $ 169,084
56
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 8: Changes in Long -Term Liabilities — Business -type Activities (Continued)
The following schedule summarizes the debt to maturity payments for capital leases:
Year Ending
June 30, Total
2013 $ 133,100
2014 44,366
Total Payments 177,466
Less Amount Representing Interest (8,382)
Outstanding Principal $ 169,084
Note 9: 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, 2012.
Amount
Outstanding at
Proceeds Maturity Date Interest Rate June 30, 2012
Assessment District No. 97-1 $ 705,262 9/2/2018 4.10% - 5.20% $ 275,000
Assessment District No. 2001-1 2,285,000 9/2/2015 5.00% - 6.60% 465,000
Note 10: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2012, are as
follows:
Due to Other
Fiinrk
Non -Major
Governmental Total
Due From Other Funds
General Fund $ 14,174 $ 14,174
Total: $ 14,174 $ 14,174
57
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 10: Interfund Receivables and Payables (Continued)
The interfund balances were made to cover negative cash balances and other temporary
loans at June 30, 2012.
The composition of non -current interfund receivable and payable as of June 30, 2012, are as
follows:
Advances From Other Funds
RDA PA #1 RDA PA #2 Non -Major
Civic Center Debt Service Debt Service Golf Course Governmental TOTAL
Advances to Other Funds
General Fund $ 7,169,490 $ - $ - $ 5,313,025 $ 2,935,414 $ 15,417,929
a) As of June 30, 2012, the General Fund has advanced to the Golf Course fund
$5,313,025. The advances accrue interest at the City's investment pool rate and are to
be repaid by the golf course out of future profits.
b) In September 2006, an advance up to $9,615,094 for the City Hall expansion from the
General Fund to the Civic Center Developer Impact Fee Fund was approved. As of
June 30, 2012, the Civic Center expansion was completed and the amount of the
advance was $7,169,490 outstanding. The advance accrues interest that would have
been earned by the Local Agency Investment Fund.
c) In October 2009, an advance up to $2,033,687 for the Phase 1 of the Corporate Yard
from the General Fund to the Street and Park Maintenance Facility Funds was approved.
As of June 30, 2012, the amount of the outstanding advance was $2,021,772. The
advance accrues interest at the earnings rate of the City's investment pool fund.
d) In February 2003, the Redevelopment Agency Capital Projects PA No. 2 Fund advanced
$1,350,131 to the Fire Facility Fund to provide funding for development of the City's north
Fire Station. On March 1, 2012 the outstanding advance of $925,192 was transferred
from the Redevelopment Agency to the General Fund with the Redevelopment Agency
receiving $925,192 in cash for the outstanding balance. The advance accrues interest
equal to the earnings rate of the City's Investment Pool Funds. As of June 30, 2012, the
remaining balance of the advance is $ 913,642.
Note 11: Interfund Transfers
Transfers In
General Fund
Capital Improvement
Non -Major Governmental
Internal Service
Transfers Out
Capital RDA PA #1
General Fund Improvement Debt Service
1,356,275 - 488,652
2,000 47,130 -
Non -Major
Governmental Total
$ 411,105 $ 411,105
7,549,448 9,394,375
2,700,142 2,749,272
25,368 25,368
Total: $ 1,358,275 $ 47,130 $ 488,652 $ 10,686,063 $ 12,580,120
58
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 11: Interfund Transfers (Continued)
a) $411,105 was transferred to the General Fund from various non -major funds to fund
various program expenses within the City related to operations and grant funded activities.
b) $1,356,275 was transferred from the General Fund to the Capital Improvement Fund to
transfer various capital projects and sales tax rebate agreements.
c) $488,652 was transferred to the Capital Improvement Fund from the RDA Debt Service —
PA No. 1 Fund to fund various capital projects within the project area of the former
redevelopment agency.
d) $7,549,448 was transferred to Capital Improvement Fund from various non -major funds to
fund various capital projects within the City.
e) A combined $2,749,272 was transferred to various non -major funds from the General
Fund, Capital Improvement, and other non -major funds to support various administrative
operations, capital project, and debt service expenses within the City.
f) $25,368 was transferred to the internal service funds to support City-wide equipment
replacement expenses.
Note 12: Long-term Receivable
Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods.
Some claims take many years to resolve and over time their estimated value changes. The
retrospective adjustments are calculated annually and take into consideration all the changes
in claim values that occurred during the most recent year. The formula is designed to
adequately cover the cost of claims brought against members and to ensure the overall
financial strength and security of the Authority. The formula was developed to be as equitable
as possible by taking into consideration both risk exposure and claims experience of
individual members. CJPIA has temporarily deferred the payment on retrospective deposits
owed to the Authority by members. The payment deferral period extends until July 1, 2013 for
the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective
deposit payments are scheduled to resume on these dates. The October 2011 annual
retrospective adjustment is included in these balances. The City at June 30, 2012 had a
retrospective refund due to the City in the amount of $257,885.
During the payment deferral period, members with a retrospective refund balance will receive
a portion of the balance as a credit against other charges on the annual contribution invoice.
For the 2011-12 coverage year, the refund amount will be 25%. The percentage to be
refunded in future years will be set on an annual basis by the Executive Committee of CJPIA.
Once the payment deferral period has concluded in each program, subsequent retrospective
refund adjustments will be applied in full (100%) as a credit on the annual contribution
invoice.
More information on the CJPIA retrospective balances can be found on the CJPIA website at
CJPIA.org.
59
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
IV. OTHER INFORMATION
Note 13: Defined Benefit Pension Plan
Plan Description
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), a cost sharing multiple -employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost -of -living adjustments and death
benefits to plan members and beneficiaries. PERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit
provisions and all other requirements are established by State statute and City ordinance.
Copies of PERS' annual financial report may be obtained from their executive office:
400 P Street, Sacramento, CA 95814.
Fundina Polic
Participants are required to contribute 8% of their annual covered salary. The City makes the
contributions required of City employees on their behalf and for their account. The City is
required to contribute at an actuarially determined rate; the current rate is 10.263% of annual
covered payroll. The contribution requirements of plan members and the City are established
and may be amended by PERS. The contribution requirement of plan member and the City
are established and may be amended by CalPERS.
Contributions
For the year ended June 30, 2012, the City's contribution of $816,449 was equal to the City's
required and actual contribution. The required contribution was determined as part of the
June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptions included (a) 7.75% investment rate of return (net of administrative
expenses) and (b) projected annual salary increases that range from 3.55% to 14.45%
depending on age, service, and type of employment. Both (a) and (b) include inflation
component of 3%. The actuarial value of PERS assets was determined using techniques
that smooth the effects of short-term volatility in the market value of investments over a three-
year period. PERS unfunded actuarial accrued liability (or surplus) is being amortized as a
level percentage of projected payroll on a closed basis. The remaining amortization period at
June 30, 2009 was 19 years.
Three -Year Trend Information for
PERS
Required Percentage
Fiscal Year Contribution Contributed
6/30/2010 $ 953,728 100%
6/30/2011 714,598 100%
6/30/2012 816,449 100%
.(
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 14: Defined Contribution Plans
Plan Description
The Supplemental Pension Savings Plan is a defined contribution pension plan established
by the City to provide retirement excess benefits to general employees of the City. At
June 30, 2012, there was one plan member. There are no required contributions by plan
members. At June 30, 2012, the City has contributed $200,054 to fund the Supplemental
Pension Savings Plan.
Note 15: Post -Employment Health Benefits
Plan Description
The City of La Quinta provides other postemployment benefits (OPEB) through a single -
employer defined benefit healthcare plan by contributing on behalf of all eligible retirees'
$108/month for calendar 2011 and $112/month for calendar 2012, increased in all future
years according to the rate of medical inflation. These benefits are provided per contract
between the City and the employee associations. A separate financial report is not available
for the plan.
Funding Policy
The contribution requirements of plan members and the City are established and may be
amended by the City, City Council and/or the employee association. Currently, contributions
are not required from plan members. There was no contribution made during the 2011-2012
fiscal year to cover current plan premiums.
As a result, the City calculated and recorded a net OPEB obligation, representing the
difference between the annual required contribution (ARC) and actual contributions, as
presented below:
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost
Contributions made
(Decrease) increase in net OPEB obligation
Net OPEB obligation (asset) - beginning of year
Net OPEB obligation (asset) - end of year
$ 138,992
3,373
(13,872)
128,493
(6,160)
122,333
337,311
$ 459.644
61
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 15: Post -Employment Health Benefits (Continued)
Type of
Valuation
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan
and the net OPEB obligation for 2011-2012 and the two preceding years were as follows:
Actual
Percentage
Fiscal
Annual
Contribution
of Annual
Net OPEB
Year
OPEB
(Net of
OPEB Cost
Obligation
End
Cost
Adjustments)
Contributed
(Asset)
6/30/2010
$ 116,821
$ 3,513
3.01 %
$ 222,466
6/30/2011
119,105
4,260
3.58%
337,311
6/30/2012
128,493
6,160
4.79%
449,145
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
The schedule of funding progress below presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation
information available.
Actuarial Actuarial Actuarial Actuarial Percent of
Valuation Value of Accrued Accrued Funded Covered Covered
Date Assets Liability Liability Ratio Payroll Payroll
Actual 7/1/2008 $
Actual 7/1/2011
- $ 590,676 $ 590,676 0.0% $ 7,821,474
- 428,328 428,328 0.0% 7,459,445
Actuarial Methods and Assumptions
Interest
Rate
7.6% 5.00%
5.7% 5.00%
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The required contribution was
determined as part of the July 1, 2011, actuarial valuation using the entry age actuarial cost
method. The actuarial assumptions included a 5.0% investment rate of return, projected
salary increases ranging from 5.0% to 8.0%, a 4.0% per year cost -of -living adjustments.
Both include an inflation component of 4%.
The actuarial value of assets is set equal to the reported market value of assets. The UAAL
is being amortized as a level dollar on an open basis. The remaining amortization period at
June 30, 2012, was twenty-seven years. The number of active participants is 12.
62
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 16: Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Insurance
Authority). The Insurance Authority is composed of 121 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 et
seq. The purpose of the Insurance Authority is to arrange and administer programs for the
pooling of self -insured losses, to purchase excess insurance or reinsurance, and to arrange
for group purchased insurance for property and other coverages. The Insurance Authority's
pool began covering claims of its members in 1978. Each member government has an
elected official as its representative on the Board of Directors. The Board operates through a
9-member Executive Committee.
General Liability
In the liability program claims are pooled separately between police and non -police
exposures. (1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which establishes
the weight applied to payroll and the weight applied to losses within the formula. (2) The
first layer of losses includes incurred costs up to $30,000 for each occurrence and is
evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The
second layer of losses includes incurred costs from $30,000 to $750,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment
point of $5 million are distributed based on the outcome of cost allocation within the first
and second loss layers. (5) Costs of covered claims from $5 million to $10 million are
paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible.
Costs of covered claims from $10 million to $15 million are paid under two reinsurance
contracts subject to a combined $3 million annual aggregate deductible. On a cumulative
basis for all 2011-2012 reinsurance contracts the annual aggregate deductible is
$5.5 million. (6) Costs of covered claims from $15 million up to $50 million are covered
through excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million
per occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess
insurance with a pooled sub -limit of $35 million per occurrence. This $35 million
subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR,
(b) $10 million in reinsurance and (c) $20 million in excess insurance. The excess
insurance layer has a $20 million annual aggregate.
Workers Compensation
In the workers' compensation program claims are pooled separately between public
safety (police and fire) and non-public safety exposures. (1) The payroll of each member
is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the
weight applied to losses within the formula. (2) The first layer of losses includes incurred
costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's
total incurred costs within the first layer. (3) The second layer of losses includes incurred
costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of
the pool's total incurred costs within the second layer. (4) Incurred costs in excess of
$100,000 up to the reinsurance attachment point of $2 million are distributed based on
63
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 16: Self Insurance (Continued)
the outcome of cost allocation within the first and second loss layers. (5) Costs of
covered claims from $2 million up to statutory limits are paid under a reinsurance policy.
Protection is provided per statutory liability under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage from
$2 million to $4 million is purchased as part of a reinsurance policy, and Employer's
Liability losses from $4 million to $10 million are pooled among members.
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no
significant reductions in pooled or insured liability coverage in 2011-2012.
Additional Coverage
In addition to coverage with the Authority, the City also carries additional coverage for
earthquake & flood and real and personal property with Pacific Insurance Co. Coverage is
$5,000,000 with a 10% deductible subject to a minimum of $25,000. The total insured value
of real and personal property is $20,000,000. An excess earthquake & flood and real and
personal property policy is held with Endurance American Specialty Insurance Company.
Coverage is $2,500,000 in excess of the $5,000,000 covered by the primary policy.
Employee dishonesty, forgery and computer fraud insurance is held with Hartford Insurance
Company. Coverage is $1,000,000 with a $5,000 deductible.
All risk property insurance, including auto physical damage is held with Lexington Insurance
Company. Coverage is up to $10,000,000 per occurrence with various sublimits depending
on the property. The total insured value of real and personal property is $65,426,900.
During the past three fiscal years none of the above programs of protection have had
settlements or judgments that exceed pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
Note 17: Commitments and Contingencies
The following material construction commitments existed at June 30, 2012:
Project Name
Washington St Apartments Rehabilitation
Adams Street Bridge Improvements
Note 18: Fund Balances
Expenditures
to date as of Remaining
Contract Amount June 30, 2012 Commitments
18,906,474 $ 385,560 $ 18,520,914
13,088,121 4,536,166 8,551,955
The City has the following committed fund balance shown on the balance sheet:
Committed to emergency reserve - the City established the amount of 35% of the Fiscal
Year 2011-2012 budget plus $4,000,000 which totals $17,516,295 in the General Fund
for the year ended June 30, 2012. The funds would be drawn upon pursuant to the
Municipal Code Section 2.20 which defines an emergency or disaster to mean the actual
or threatened existence of conditions of disaster or of extreme peril to the safety of
64
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 18: Fund Balances (Continued)
persons and property within this city caused by such conditions as air pollution, fire, flood,
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, 2012 the City has committed $1,523,401 for this purpose.
These committed amounts have been approved by Council based on certain percentages
and will be used only in the event of Council approval.
Additionally, the City has included the following amounts in the unassigned fund balance
amount shown on the balance sheet:
Cash Flow Reserve - the City established the amount of 8.25% of the Fiscal Year
2011-2012 budget which totals $3,185,984 in the General Fund for the year ended
June 30, 2012.
Future Operational Deficit - For the future operational deficit, the City has set aside
$3,184,702 for the year ended June 30, 2012.
Note 19: Golf Course Management Agreement
The City entered into an agreement with Landmark Golf Management LLC (operator) to
manage the golf operations at the city -owned SilverRock Golf Course. The Agreement
entered into on April 6, 2004, sets forth a five year term commencing upon the completion of
the golf course. On January 14, 2005, the golf course was deemed to be complete and
management was turned over to the operator. The contract provides that the operator will
manage the day to day operations, hire employees, provide golf pro shop and food services,
manage all marketing and promotional activities, prepare the annual budget report for Council
consideration, and manage accounting and payroll functions. In addition to the annual
payment for management services, the City has advanced the operator $250,000 to pay for
golf course expenses. Twice a month the operator submits a request for reimbursement to
the City to replenish the City's advance. In addition, the agreement sets forth the
establishment of a capital reserve fund of 2% of green fees. For the fiscal year ending
June 30, 2012, the Golf Course had an operating loss before contributions and transfers of
$212,309.
Note 20: Reimbursement Agreements
The City entered into a transient occupancy tax (TOT) revenue reimbursement agreement on
August 31, 2006, with Village Resort LLC, the owner of an Embassy Suites Hotel. The hotel
owner is required to remit on a monthly basis any TOT collected to the City, thirty days after
each month. Under terms of the agreement, the City shall make quarterly payments of 40%
of any TOT generated from the Hotel in an amount not to exceed $1,000,000 over a five year
period. The agreement terminates when either the $1,000,000 limit is reached or in
5 years whichever comes first. On January 17, 2012, the City amended the agreement to
extend the termination date by an additional one year period, subject to the $1,000,000
maximum reimbursement. In addition, the hotel may not assign or transfer this agreement
65
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 20: Reimbursement Agreements (Continued)
Note 21:
Note 22:
without the City's prior written consent, which it may withhold at its discretion. The hotel
opened in November 2006. As of June 30, 2012, the City made $967,744 in reimbursement
payments to the owner leaving an outstanding balance of $32,256.
The City entered into a sales tax sharing agreement on January 30, 2006, with Costco
Wholesale Corporation. Under the terms of the agreement the City shall make quarterly
payments of 40% of any sales tax generated from Costco in an amount not to exceed
$4,000,000 over a ten year period. Due to the reporting of sales tax information by the State
Board of Equalization to the City, the reimbursement payments by the City will lag by one
quarter. The agreement terminates when either the $4,000,000 limit is reached or in
10 years whichever comes first. The Costco business opened in November 2006. As of
June 30, 2012, the City made $1,709,264 in reimbursement payments to the owner leaving
an outstanding balance of $2,290,736.
California Redevelopment Agency Dissolution
On July 18, 2011, the California Redevelopment Association ("CRA") and the League of
California Cities ("League") filed a petition for writ of mandate with the California Supreme
Court, requesting the Court to declare unconstitutional two bills that were passed as part of
the 2011-12 State Budget, AB 1X 26 and 27 (California Redevelopment Association v.
Matosantos). AB 1X 26 dissolves redevelopment agencies effective October 1, 2011.
AB 1X 27 gave redevelopment agencies an option to avoid dissolution if it commits to making
defined payments for the benefit of the State, school districts and certain special districts. In
2011-12, these payments amounted to a state-wide total of $1.7 billion. In 2012-13 and
subsequent years, the payments totaled $400 million, annually. Each city or county's share
of these payments was determined based on its proportionate share of state-wide tax
increment.
On August 17, 2011 the Supreme Court issued a stay of the implementation of AB 1X 26 and
27 which allowed a redevelopment agency to continue if it adopted an AB 1X 27 ordinance.
However, because of the effect of the stay order, the authority for the Redevelopment Agency
to engage in most activities was suspended.
The Supreme Court heard oral arguments on November 10, 2011 and on
December 29, 2011 announced its decision in California Redevelopment Association v.
Matosantos. The court upheld AB 1X 26 which dissolves redevelopment agencies, but
invalidated in its entirety AB 1X 27 which allowed redevelopment agencies to continue as
long as they made the required payments. AB X1 26 established deadlines for the process of
Redevelopment Agency dissolution and the handling of existing obligations. The full text of
AB 1X 26 may be obtained from the California legislative information website maintained by
the Legislative Counsel of the State of California at: http://www.leginfo.ca.pov/bilinfo.html.
As of January 31, 2012,
La Quinta has elected to
responsible for winding
Agency.
Subsequent Event
the Redevelopment Agency has been dissolved and the City of
become the Successor Agency. The Successor Agency will be
down the remaining activities of the dissolved Redevelopment
Orders from California State Controller
On April 20, 2012, pursuant to Health and Safety Code Section 34167.5, the California State
Controller issued an order to cities, counties, and agencies, directly or indirectly receiving
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 22: Subsequent Event (Continued)
assets from a redevelopment agency after January 1, 2011, to reverse the transfer and return
assets to successor agency. The California State Controller will specifically review and audit
cities, counties, and public agencies to ensure that all applicable asset transfers have been
reversed. Any reversals of transfers are not reflected in the Agency's financial statements as
of January 31, 2012. Upon the Controller's review, any assets, if applicable, would be
transferred to the Successor Agency in accordance with the order.
On October 2, 2012, the City adopted resolution no. 2012-053 to transfer ownership of ten
public/government use, non -housing properties to the successor agency, which were
previously transferred to the City during the time period January 1, 2011 and June 30, 2011
for no compensation.
Assembly Bill 1484
Assembly Bill 1484 established a requirement for the successor agency to remit to the
County auditor -controller three payments as determined by the auditor -controller which
consist of a payment to be made in July 2012 for taxing entities' share of December 2011
property tax distribution to redevelopment agency/successor agency, a payment to be made
in November 2012 related to Low -Moderate Income Housing Fund, and a payment to be
made in April 2013 for unencumbered cash. As of the date of the report no payment in July
2012 was required and the future amounts due have not been determined by the auditor -
controller.
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency
On December 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 in
accordance with the Bill as part of City resolution number 2012-002.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California cannot enter into new projects, obligations or commitments. Subject to the
control of a newly established oversight board, remaining assets can only be used to pay
enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is
necessary to pay the estimated annual installment payments on enforceable obligations of
the former redevelopment agency until all enforceable obligations of the prior redevelopment
agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any
transfers of assets between redevelopment agencies and other public bodies that occurred
after January 1, 2011. If the public body that received such transfers is not contractually
committed to a third party for the expenditure or encumbrance of those assets, the State
Controller is required to order the available assets to be transferred to the public body
designated as the successor agency by the Bill.
67
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Management believes, in consultation with legal counsel, that the obligations of the former
redevelopment agency due to the City are valid enforceable obligations payable by the
successor agency trust under the requirements of the Bill. The City's position on this issue is
not a position of settled law and there is considerable legal uncertainty regarding this issue. It
is reasonably possible that a legal determination may be made at a later date by an
appropriate judicial authority that would resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme
Court on December 29, 2011) all redevelopment agencies in the State of California were
dissolved and ceased to operate as a legal entity as of February 1, 2012.
Prior to that date, the final seven months of the activity of the redevelopment agency
continued to be reported in the governmental funds of the City. After the date of dissolution,
the assets and activities of the dissolved redevelopment agency are reported in a fiduciary
fund (private -purpose trust fund) in the financial statements of the City.
The transfer of the assets and liabilities of the former redevelopment agency as of
February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds
of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss
(or gain) in the governmental fund financial statements. The receipt of these assets and
liabilities as of January 31, 2012 was reported in the private -purpose trust fund as an
extraordinary gain (or loss).
Because of the different measurement focus of the governmental funds (current financial
resources measurement focus) and the measurement focus of the trust funds (economic
resources measurement focus), the extraordinary loss (gain) recognized in the governmental
funds was not the same amount as the extraordinary gain (loss) that was recognized in the
fiduciary fund financial statements.
The difference between the extraordinary loss recognized in the fund financial statements
and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled
as follows:
Total extraordinary loss reported in the governmental funds - increase
to net assets of the Succesory Agency Trust Fund $ (79,058,255)
Deferred revenue reported in the government -wide financial statements
- increase in net assets of the Successor Agency Trust Fund (3,251,160)
Unamortized debt issuance costs reported in government -wide
financial statements - increase in net assets of the Successor
Agency Trust Fund (4,323,334)
Long-term debt reported in the government -wide financial statements -
decrease to net assets of the Successor Agency Trust Fund 244,116,299
Net decrease to net assets of the Successor Agency Trust Fund as a
result of initial transfers (equal to amount of extraordinary gain
reported in the government -wide financial statements of the City) $ 157,483,550
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of
the following:
Cash and investments pooled with the City $ 23,193,145
Cash and investments with fiscal agent 57,077,193
$ 80,270,338
b. Loans Receivable
Owner Participation Agreement — Garff Properties, LLC
In July 2010, the former redevelopment agency entered into an Owner Participation
Agreement (OPA) with an Garff Properties -La Quinta, LLC ("Garff') that provides for the
Agency to provide a rehabilitation loan to Garff of up to $2,300,000 for the construction of
a new auto dealership facility and rehabilitation of an existing dealership facility. In
connection with the OPA, Garff has executed a promissory note which is secured by a
deed of trust, and an operating covenant. The loan will be repaid by crediting future
sales and property tax increment taxes generated on the site until the cumulative taxes
collected equals the loan amount. At that time, the note will be cancelled and the
operating covenant will terminate. If, after ten years of operation, a shortfall exists
between the revenues collected and the outstanding loan amount, the note will be
cancelled and the operating covenant will terminate. Further, if at any time through no
fault of the dealership certain future events outside of the dealership control occur the
note will be cancelled and the operating covenant will terminate. The balance at
June 30, 2012, is $2,504,809.
Owner Participation Agreement — Torre Nissan
In June 2011, the former redevelopment agency entered into an Owner Participation
Agreement (OPA) with an autodealer, Mega Dealer, LLC ("Torre Nissan") that provides
for the Agency to provide a rehabilitation loan to Torre Nissan of up to $1,500,000 for the
remodeling of the existing dealership and an expansion of the dealership facility to
accommodate a new line of electric and commercial vehicles. The new expansion will
also include service and parts sales facilitates. In connection with the OPA, Torre Nissan
has executed a promissory note, which is secured by a subordinated deed of trust, and in
operation of the term of the note Nissan Motor Company ceases to exist, the note will be
cancelled and the operating covenant will terminate. At the end of the ten-year operating
covenant, the operating covenant will terminate and the note will be cancelled, and any
outstanding loan balance will be forgiven. As of June 30, 2012, construction was in
progress and $746,351 of the $1,500,000 had been expanded leaving an available
balance of $753,649.
c. Due from other Governments
La Quinta Community Park
In July 2002, an advance of $4,167,912 was made from the former redevelopment
agency to provide funding for the development of the publicly owned improvements to the
La Quinta Community Park. The advance accrues interest at the earnings rate of the
City's investment pool fund. As of June 30, 2012, the remaining balance of the advance
for the La Quinta Community Park is $1,183,816.
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
La Quinta Library
In April 2005, another advance of $2,490,273 was made from the former redevelopment
agency to provide funding for the construction of the public library. The advance accrues
interest at the earnings rate of the City's investment pool fund. The remaining balance of
this advance at June 30, 2012, is $1,860,330.
Highway 111 Improvements
In June 2012, an advance of $1,276,516 was made from the former redevelopment
agency to the City of La Quinta's Transportation Development Fund to provide funding for
the Highway 111 median public improvements. The advance accrues interest at 7%. As
of June 30, 2012, the remaining balance of the advance is $502,775.
d. Long -Term Debt
The following debt was transferred from the Redevelopment Agency to the Successor
Agency as of February 1, 2012 as a result of the dissolution.
A description of long-term debt outstanding (excluding defeased debt) of the Successor
Agency as of June 30, 2012, follows:
Tax allocation bonds
Provident Loan
US Department of Agriculture
Revenue bonds
Unamortized premiums/discounts
Total
Transfers to
Balance at Successor
Balance at
Due within one
July 1, 2011 Agency* Additions
Deletions
June 30, 2012
year
$ - $ 134,810,000 $ -
$ -
$ 134,810,000
$ 3,940,000
- 1,486,285 -
12,673
1,473,612
32,516
- 722,046 -
5,674
716,372
14,267
- 108,195,000 -
-
108,195,000
1,890,000
- (1,097,032) 23,780
2,343
(1,075,595)
-
$ $ 244,116,299 $ 23,780 $ 20,690 $ 244,119,389 $ 5,876,783
Tax Allocation Bonds
On June 14, 2012, Moody's Investors Service ("Moody's") downgraded all California tax
allocation bonds rated `Baa3' and above. As such, the Bonds' insured rating was
downgraded from `AS to `Ball' and underlying rating was downgraded from `AS to `Ball'.
According to Moody's, all California tax allocation bond ratings remain on review for
possible withdrawal.
As of June 30, 2012, the following issuances of Tax Allocation Bonds were outstanding:
Series 1994, Project Area No. 1
Tax Allocation Refunding Bonds, Series 1994, were issued by the former
redevelopment agency on May 5, 1994, in the amount of $26,665,000 to refund the
outstanding aggregate principal amount of the Agency's Tax Allocation Bonds, Series
1989 and 1990. The remaining proceeds were used to finance certain capital
improvements within the La Quinta Redevelopment Project Area No. 1.
70
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually
on March 1 and September 1 of each year until maturity. The interest on and
principal of the bonds are payable solely from pledged tax increment revenues. The
bonds are not just subject to redemption prior to maturity. There are certain
limitations regarding the issuance of parity debt as further described in the official
statement. A portion of the proceeds was used to obtain a surety agreement to
satisfy the bond reserve requirement. The principal balance of outstanding bonds at
June 30, 2012, is $2,470,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal Interest
2013 $ 2,470,000 $ 90,155
Totals $ 2,470,000 $ 90,155
Series 1998, Project Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were
issued by the Agency to refund the outstanding aggregate principal amount of the
former redevelopment agency's Tax Allocation Bonds, Series 1991. The remaining
proceeds were used to finance certain capital improvements within the La Quinta
Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable
semi-annually on March 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable solely from pledged tax increment revenues of
Project Area No. 1.
Term Bonds maturing September 1, 2028, are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013, and on each September 1
thereafter, through September 1, 2028, at a price equal to the principal amount
thereof plus accrued interest. There are certain limitations regarding the issuance of
parity debt as further described in the official statement. A portion of the proceeds
was used to obtain a surety agreement to satisfy the bond reserve requirement. The
principal balance of outstanding bonds at June 30, 2012 is $15,760,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ -
$ 819,520
2014
655,000
802,490
2015
690,000
767,520
2016
725,000
730,730
2017
765,000
691,990
2018-2022
4,455,000
2,805,270
2023-2027
5,740,000
1,485,900
2028-2032
2,730,000
143,780
Totals $ 15,760,000 $ 8,247,200
71
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Series 1998, Project Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were
issued by the former redevelopment agency to refund the outstanding aggregate
principal amount of the Agency's Tax Allocation Bonds, Series 1992. The remaining
proceeds were used to finance certain capital improvements within the La Quinta
Redevelopment Project Area No. 2.
Interest rates on the bonds range from 3.75% to 5.28% and are payable
semi-annually on March 1 and September 1 of each year until maturity. The interest
and principal of the bonds are payable solely from pledged tax increment revenues of
Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033, are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and
September 1, 2019, respectively, and on each September 1 thereafter at a equal to
the principal amount thereof plus accrued interest.
There are certain limitations regarding the issuance of parity debt as further
described in the official statement. A portion of the proceeds was used to obtain a
surety agreement to satisfy the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2012 is $5,425,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ 140,000
$ 279,819
2014
145,000
272,516
2015
150,000
264,956
2016
160,000
257,013
2017
170,000
248,556
2018-2022
975,000
1,000,075
2023-2027
1,270,000
807,188
2028-2032
1,635,000
428,006
2033-2037
780,000
41,475
Totals $ 5,425,000 $ 3,599,604
Series 2001, Project Area No. 1
On August 15, 2001, the former redevelopment agency issued tax allocation bonds in
the amount of $48,000,000 to finance capital projects benefiting the La Quinta
Redevelopment Project Area No. 1. The 2001 tax allocation bonds were issued at a
discount of $422,400 and issuance costs of $1,517,325.
The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and
mature on September 1, 2021, and $30,720,000 of term bonds that accrue interest at
5.18% and mature on September 1, 2031. The interest and principal on the bonds
are payable from pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2012,
is $48,000,000 with an unamortized discount of $332,065.
72
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ -
$ 2,430,720
2014
1,565,000
2,391,595
2015
1,645,000
2,311,345
2016
1,730,000
2,226,970
2017
1,815,000
2,138,345
2018-2022
10,525,000
9,200,475
2023-2027
13,455,000
6,186,173
2028-2032
17,265,000
2,288,753
Totals $ 48,000,000 $ 29,174,376
Series 2002, Project Area No. 1
On June 12, 2002, the former redevelopment agency issued tax allocation bonds in
the amount of $40,000,000 to finance capital projects benefiting the La Quinta
redevelopment Project Area No. 1. The 2002 tax allocation bonds were issued at a
discount of $360,000 and issuance costs of $1,250,096.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds.
Interest Rates on serial bonds range from 1.75% and 4.00% and are payable
semi-annually on March 1 and September 1 of each year until maturity. Term bonds
accrue interest at 5.00% and 5.125% and mature on September 1, 2022 and
September 1, 2023. The interest and principal on the bonds are payable from
pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2012 is
$34,380,000 with an unamortized discount of $294,744.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ 735,000
$ 1,727,981
2014
705,000
1,695,656
2015
735,000
1,659,656
2016
770,000
1,622,031
2017
810,000
1,582,531
2018-2022
4,710,000
7,245,156
2023-2027
6,025,000
5,899,091
2028-2032
12,385,000
3,795,959
2033-2037
7,505,000
192,316
Totals $ 34,380,000 $ 25,420,377
73
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Series 2003, Project Area No. 1
On September 1, 2003, the former redevelopment agency issued tax allocation
bonds in the amount of $26,400,000 to finance capital projects benefiting the
La Quinta Redevelopment Project Area No. 1. The 2003 tax allocation bonds were
issued at a discount of $277,200 and issuance costs of $629,191.
Interest is payable semi-annually on March 1 and September 1 of each year,
commencing March 1, 2004. Interest payments range from 4.24% to 6.44% per
annum. The interest and principal on the bonds are payable from pledged tax
increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032, are subject
to mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and
on each September 1 thereafter at a redemption price equal to the principal amount
thereof plus accrued interest to the redemption date.
The principal balance of outstanding bonds at June 30, 2012, is $22,775,000 with an
unamortized discount of $193,423.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ 560,000
$ 1,423,495
2014
590,000
1,392,158
2015
620,000
1,356,736
2016
660,000
1,316,800
2017
700,000
1,274,368
2018-2022
4,220,000
5,636,456
2023-2027
5,730,000
4,085,165
2028-2032
7,815,000
1,926,043
2033-2037
1,880,000
60,536
Totals $ 22,775,000 $ 18,471,757
Series 2011, Project Area No. 2
On June 6, 2011, the former redevelopment agency issued subordinate taxable tax
allocation bonds in the amount of $6,000,000 to finance capital projects benefiting
the La Quinta Redevelopment Project Area No. 2. The 2001 tax allocation bonds
were issued at a discount of $86,207 and issuance costs of $108,500.
The bonds consist of $190,000 of term bonds that accrue interest at 5.375% and
mature on September 1, 2016, $280,000 of term bonds that accrue interest at
7.125% and mature on September 1, 2021, $380,000 of term bonds that accrue
interest at 7.600% and mature on September 1, 2026, and $5,150,000 of term bonds
that accrue interest at 8.150% and mature on September 1, 2031. The interest and
principal on the bonds are payable from pledged tax increment revenues.
A portion of the proceeds were used to fund the bond reserve requirement. The
principal balance of outstanding bonds at June 30, 2012, is $6,000,000 with an
unamortized discount of $83,024.
74
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The minimum annual requirements to amortize the bond payable as of June 30, 2012,
are as follows:
Principal
Interest
2013
$ 35,000
$ 478,768
2014
35,000
476,886
2015
40,000
475,005
2016
40,000
472,855
2017
40,000
470,705
2018-2022
280,000
2,305,725
2023-2027
380,000
2,189,825
2028-2032
555,000
2,015,497
2033-2037
2,190,000
1,643,449
2038-2042
2,405,000
402,198
Totals $ 6,000,000 $ 10,930,913
Washington Street Apartments
In October 2008, the former redevelopment agency acquired the Washington Street
Apartments for cash and the assumption of the following debt:
Provident Bank Loan
This loan was originally entered into with the previous owner of the Washington
Street Apartments and Provident Bank for $1,696,000 in August 2001 at an
8.36% interest rate. The loan is amortized on a thirty year basis with the
outstanding balance due in twenty years or August 2021. The outstanding
principal balance in October 2008 when the property was acquired by the former
redevelopment agency was $1,572,031. The loan is secured by a deed of trust
on the property and is senior to the United States Department of Agriculture
(USDA) loan which is also secured by a deed of trust on the property.
Repayment of the monthly loan amount of $12,873 is made from tenant rent
receipts. The source for the final principal payment due in August 2021 of
$1,050,109 will be determined at a future date. The principal balance of this loan
at June 30, 2012 is $1,473,612.
The minimum annual requirements to amortize the loan payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ 32,517
$ 121,959
2014
35,340
119,134
2015
38,411
116,064
2016
41,748
112,726
2017
45,375
109,099
2018-2022
1,280,221
408,070
Totals $ 1,473,612 $ 987,052
75
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
United States Department of Agriculture (USDA) Rural Development Promissory
Note
This promissory note was originally entered into with the previous owner of the
Washington Street Apartments and USDA — Rural Development for $1,500,000
in November 1980 at a 10.00% interest rate. The note is amortized on a
fifty year basis with the outstanding balance due in October 2030. The
outstanding principal balance, in October 2008, when the property was acquired
by the former redevelopment agency was $760,721. The loan is secured by a
deed of trust on the property and is subordinated to the Provident loan which is
also secured by a deed of trust on the property. Repayment of the monthly loan
amount of $7,107 is made from tenant rent receipts and a rental subsidy from the
USDA. Rural Development has agreed to a 9% interest rate subsidy on the
Promissory Note as long as the Apartment renters meet certain program
eligibility requirements. The principal balance of this note at June 30, 2012 is
$716,372.
Principal
Interest
2013
$ 14,267
$ 71,014
2014
15,761
69,520
2015
17,412
67,870
2016
19,235
66,047
2017
21,249
64,033
2018-2022
144,664
281,745
2023-2027
238,017
188,392
2028-2032
245,768
45,420
Totals
$ 716,373
$ 854,041
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La 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
76
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
redemption price equal to the principal amount thereof plus accrued interest to the
redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity
debt as further described in the official statement. The principal balance of
outstanding bonds at June 30, 2012 is $79,345,000 with an unamortized premium of
$123,717.
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ 1,890,000
$ 4,016,581
2014
1,975,000
3,924,681
2015
2,075,000
3,823,431
2016
2,175,000
3,714,463
2017
2,290,000
3,597,256
2018-2022
13,385,000
16,001,125
2023-2027
17,280,000
12,014,144
2028-2032
22,115,000
7,061,797
2033-2037
16,160,000
1,269,975
Totals
$ 79,345,000
$ 55,423,453
2011 Series A Local Agency Subordinate Taxable Revenue Bonds
On June 9, 2011, the La 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.
A portion of the proceeds was used to fund the bond reserve requirement. There are
certain limitations regarding the issuance of parity debt as further described in the
official statement. The principal balance of outstanding bonds at June 30, 2012 is
$28,850,000 with an unamortized discount of $296,056.
77
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2012
Note 23: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2012, are as follows:
Principal
Interest
2013
$ -
$ 2,171,767
2014
520,000
2,171,767
2015
540,000
2,152,267
2016
565,000
2,127,967
2017
590,000
2,099,717
2018-2022
3,560,000
9,901,856
2023-2027
5,035,000
8,421,225
2028-2032
7,310,000
6,149,320
2033-2037
10,730,000
2,731,696
Totals $ 28,850,000 $ 37,927,582
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 $437,592,660 with annual debt service requirements as
indicated below. For the current year, the total property tax revenue recognized by the
City and Successor Agency for the payment of indebtedness incurred by the dissolved
redevelopment agency was $45,566,968 and the debt service obligation on the bonds
was $18,505,972.
f. Conduit Debt Financing
2002 Series B Multifamily Housinq Revenue Bonds
In April 2002, the Agency issued $3,000,000 of 2002 Series B Multifamily Housing
Revenue Bonds to provide financing for the acquisition, construction and equipping of a
multifamily senior rental housing project known as Miraflores Apartments located in the
City of La Quinta. The bonds mature on June 1, 2035, and bear interest at 5.5% per
annum. Outstanding bonds at June 30, 2012, are $2,700,000.
The bond is secured solely by the credit facility, Fannie Mae, and by a pledge of the trust
estate comprised of bond proceeds and property. The bond is not an obligation of the
issue, but payable solely from the security.
g. Insurance
The Successor Agency of the former redevelopment agency is covered under the
insurance policy of the City of La Quinta at June 30, 2012.
78
OTHER GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues (other than expendable trusts and major
capital projects) and the related expenditures that are legally required to be accounted for in a separate
fund. The City of La Quinta has the following Special Revenue Funds:
State Gas Tax Fund — To account for gasoline allocations made by the State of California. These
revenues are restricted by the State to expenditures for street -related purposes only.
Library Fund — To account for revenues from property tax increment dedicated library services.
Federal Assistance Fund — To account for revenues from the Community Development Block Grants
received from the Federal Government and the expenditures of those resources.
State Law Enforcements Block Grant (SLEBG) Fund — To account for state funded "Citizens for Public
Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police
services such as anti -gang community crime prevention.
Indian 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.
Congestion Management Air Quality Fund — To account for grant funds related to improving air quality.
La Quinta Public Safety Officer Fund — To account for contributions to be distributed to public safety
officers disabled or killed in the line of duty.
Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of
approved artworks in a development with expenditures restricted to acquisition, installation, maintenance
and repair of artworks at approved sites.
South Coast Air Quality Fund — To account for contributions from the South Coast Air Quality
Management District. Use is limited to reduction and control of airborne pollutants.
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.
79
Proposition 1 B - To account for the revenues and expenditures related to Proposition 1 B monies.
Justice Assistance Grant — To account for Federal Bureau of Justice Block Grant program grant funds,
which are used to reduce crime and improve public safety.
Housing Authority PA No.1 — To account for the housing activities of the Housing Authority in Project Area
1 which is to promote and provide for quality housing.
Low/Moderate Income Housing — Proiect Area No. 1 Fund — This fund is used to account for the required
20% set aside of property tax increments that is legally restricted for increasing and improving housing for
low and moderate income households.
Low/Moderate Income Housing — Proiect Area No. 2 Fund — This fund is used to account for the required
20% set aside of property tax increments that is legally restricted for increasing and improving housing for
low and moderate income households.
CAPITAL PROJECT FUNDS
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Infrastructure Fund - To account for the accumulation of resources provided through developer fees for
the acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new
Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources
received prior to this date, and is budgeted by the Council through adoption of the annual capital
improvement program budget.
Transportation Fund, Parks and Recreations Fund, Library Development Fund, Community Center Fund,
Street Facility Fund, Park Facility Fund, Fire Facility Fund — To account for the accumulation of resources
provided through developer fees for the acquisition, construction, or improvement of the City's
infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight new
funds have been established to account for the specific impact areas of these fees, and are budgeted by
the Council through adoption of the annual Capital Improvement Program budget.
2011 Low/Mod Bond Fund — To account for the 2011 Tax Allocation bond proceeds that will be used to
benefit low and moderate income housing in La Quinta Redevelopment Project Area No. 1 and Project
Area No. 2.
2004 Low/Mod Bond Fund — To account for the 2004 revenue bond proceeds that will be used to finance
projects benefiting low and moderate income housing in La Quinta Redevelopment Project Area No. 1
and Project Area No. 2.
Redevelopment Agency Project Area No. 1 — To account for the bond proceeds, interest and other
funding that will be used for development, planning, construction and land acquisition.
Redevelopment Agency Proiect Area No. 2 - To account for the bond proceeds, interest and other
funding that will be used for development, planning, construction and land acquisition.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of,
governmental long-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.
0
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m
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Special Revenue Funds
Federal
State Gas Tax
Library Assistance
SLEBG
Assets:
Pooled cash and investments
$ -
$ 2,006,317 $ -
$ 1,456
Receivables:
Accounts
-
- -
-
Notes and loans
-
- -
-
Accrued interest
97
70 -
7
Due from other governments
124,624
- 8,879
25,000
Total Assets
$ 124,721
$ 2,006,387 $ 8,879
$ 26,463
Liabilities and Fund Balances:
Liabilities:
Accounts payable
-
Deferred revenues - -
8,882 -
Unearned revenues - -
- -
Deposits payable - -
- -
Due to other governments - -
- -
Due to other funds - -
8,879 -
Advances from other funds - -
- -
Total Liabilities - -
17,761 -
Fund Balances:
Nonspendable:
Notes and loans - -
- -
Restricted for:
Planning and development projects - -
- -
Public safety - -
- 26,463
Community services - 2,006,387
- -
Public works 124,721 -
- -
Capital Projects - -
- -
Debt service - -
- -
Unassigned - -
(8,882) -
Total Fund Balances 124,721 2,006,387
(8,882) 26,463
Total Liabilities and Fund Balances $ 124,721 $ 2,006,387 $
8,879 $ 26,463
82
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012 (Continued)
Special Revenue Funds
Congestion
Lighting and Management Air
Indian Gaming Landscaping Quimby Quality Fund
Assets:
Pooled cash and investments $ 1,184 $ - $ 8,287,475 $ -
Receivables:
Accounts - - - -
Notes and loans - - - -
Accrued interest - - 2,702 -
Due from other governments - 21,102 - -
Total Assets $ 1,184 $ 21,102 $ 8,290,177 $ -
Liabilities and Fund Balances:
Liabilities:
Accounts payable $-
Deferred revenues - - - -
Unearned revenues 1,184 - - -
Deposits payable - - - -
Due to other governments - - - -
Due to other funds - - - -
Advances from other funds - - - -
Total Liabilities 1,184 - - -
Fund Balances:
Nonspendable:
Notes and loans - - - -
Restricted for:
Planning and development projects - - - -
Public safety - - - -
Community services - - 8,290,177 Public works - 21,102 - -
Capital Projects - - - -
Debt service - - - -
Unassigned - - - -
Total Fund Balances - 21,102 8,290,177 -
Total Liabilities and Fund Balances $ 1,184 $ 21,102 $ 8,290,177 $ -
83
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Special Revenue Funds
Art in Public
South Coast
Public Safety Places
Air Quality
AB 939
Assets:
Pooled cash and investments
$ 27,112 $ 868,094
$ 78,732
$ 925,548
Receivables:
Accounts
- -
-
-
Notes and loans
- -
-
-
Accrued interest
9 282
26
302
Due from other governments
- -
-
-
Total Assets
$ 27,121 $ 868,376
$ 78,758
$ 925,850
Liabilities and Fund Balances:
Liabilities:
Accounts payable $
- $ 2,883-
Deferred revenues
- - - -
Unearned revenues
- - - -
Deposits payable
- - - -
Due to other governments
- - - -
Due to other funds
- - - -
Advances from other funds
- - - -
Total Liabilities
- 2,883 - -
Fund Balances:
Nonspendable:
Notes and loans
- - - -
Restricted for:
Planning and development projects
- - 78,758 925,850
Public safety
27,121 - - -
Community services
- 865,493 - -
Public works
- - - -
Capital Projects
- - - -
Debt service
- - - -
Unassigned
- - - -
Total Fund Balances
27,121 865,493 78,758 925,850
Total Liabilities and Fund Balances $
27,121 $ 868,376 $ 78,758 $ 925,850
84
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012 (Continued)
Special Revenue Funds
Justice
Development
Law
Proposition
Assistance
Agreement
Enforcement
1 B
Grant
Assets:
Pooled cash and investments
$ 200,919
$ 160,275
$ 287,213
$ -
Receivables:
Accounts
-
-
-
-
Notes and loans
-
-
-
-
Accrued interest
65
3
94
-
Due from other governments
-
35,506
-
5,295
Total Assets
$ 200,984
$ 195,784
$ 287,307
$ 5,295
Liabilities and Fund Balances:
Liabilities:
Accounts payable $
- $ 4,181 $ - $ -
Deferred revenues
- - - -
Unearned revenues
- - 287,307 -
Deposits payable
200,984 - - -
Due to other governments
- - - -
Due to other funds
- - - 5,295
Advances from other funds
- - - -
Total Liabilities
200,984 4,181 287,307 5,295
Fund Balances:
Nonspendable:
Notes and loans
- - - -
Restricted for:
Planning and development projects
- - - -
Public safety
- 191,603 - -
Community services
- - - -
Public works
- - - -
Capital Projects
- - - -
Debt service
- - - -
Unassigned
- - - -
Total Fund Balances
- 191,603 - -
Total Liabilities and Fund Balances $
200,984 $ 195,784 $ 287,307 $ 5,295
85
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities and Fund Balances:
Liabilities:
Capital
Special Revenue Funds Projects Funds
Housing Low/Moderate Low/Moderate
Authority PA Income Housing Income Housing
No. 1 PA No. 1 PA No. 2 Infrastructure
$ 1,496,175 $ - $ - $ 267,719
248,178 - - -
4,110,651 - - -
449 - - 82
$ 5,855,453 $ - $ - $ 267,801
Accounts payable
$ 1,248-
Deferred revenues
2,045,040 - - -
Unearned revenues
- - - -
Deposits payable
23,922 - - -
Due to other governments
- - - -
Due to other funds
- - - -
Advances from other funds
- - - -
Total Liabilities
2,070,210 - - -
Fund Balances:
Nonspendable:
Notes and loans
2,065,611 - - -
Restricted for:
Planning and development projects
1,719,632 - - -
Public safety
- - - -
Community services
- - - -
Public works
- - - -
Capital Projects
- - - 267,801
Debt service
- - - -
Unassigned
- - - -
Total Fund Balances
3,785,243 - - 267,801
Total Liabilities and Fund Balances
$ 5,855,453 $ - $ - $ 267,801
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012 (Continued)
Capital Projects Funds
Parks and Library Community
Transportation Recreation Development Center
Assets:
Pooled cash and investments $ 3,123,810 $ - $ - $ 1,198,960
Receivables:
Accounts 65,245 - - -
Notes and loans - - - -
Accrued interest 970 - - 390
Due from other governments - - - -
Total Assets $ 3,190,025 $ - $ - $ 1,199,350
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ -
$ -
$ - $ -
Deferred revenues
-
-
- -
Unearned revenues
65,245
-
- -
Deposits payable
-
-
- -
Due to other governments
502,775
1,183,816
1,860,330 -
Due to other funds
-
-
- -
Advances from other funds
-
-
- -
Total Liabilities
568,020
1,183,816
1,860,330 -
Fund Balances:
Nonspendable:
Notes and loans
-
-
- -
Restricted for:
Planning and development projects
-
-
- -
Public safety
-
-
- -
Community services
-
-
- -
Public works
-
-
- -
Capital Projects
2,622,005
-
- 1,199,350
Debt service
-
-
- -
Unassigned
-
(1,183,816)
(1,860,330) -
Total Fund Balances
2,622,005
(1,183,816)
(1,860,330) 1,199,350
Total Liabilities and Fund Balances
$ 3,190,025
$ -
$ - $ 1,199,350
87
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Capital Projects Funds
2011 Low/Mod
Street Facility Park Facility Fire Facility Bond
Assets:
Pooled cash and investments $ - $ - $ - $ -
Receivables:
Accounts - - - -
Notes and loans - - - -
Accrued interest - - - -
Due from other governments - - - -
Total Assets $ - $ - $ - $ -
Liabilities and Fund Balances:
Liabilities:
Accounts payable
-
Deferred revenues
-
- - -
Unearned revenues
-
- - -
Deposits payable
-
- - -
Due to other governments
-
- - -
Due to other funds
-
- - -
Advances from other funds
2,021,772
- 913,642 -
Total Liabilities
2,021,772
- 913,642 -
Fund Balances:
Nonspendable:
Notes and loans
-
- - -
Restricted for:
Planning and development projects
-
- - -
Public safety
-
- - -
Community services
-
- - -
Public works
-
- - -
Capital Projects
-
- - -
Debt service
-
- - -
Unassigned
(2,021,772)
- (913,642) -
Total Fund Balances
(2,021,772)
- (913,642) -
Total Liabilities and Fund Balances
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012 (Continued)
Debt Service
Capital Projects Funds Funds
Redevelopment Redevelopment
2004 Low/Mod Agency PA No. Agency PA No.
Bond 1 2
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Total Assets
Liabilities and Fund Balances:
Liabilities:
Financing
Authority
$ 2,534
2,534
Accounts payable -
Deferred revenues - - - -
Unearned revenues - - - -
Deposits payable - - - -
Due to other governments - - - -
Due to other funds - - - -
Advances from other funds - - - -
Total Liabilities - - - -
Fund Balances:
Nonspendable:
Notes and loans - - - -
Restricted for:
Planning and development projects - - - -
Public safety - - - -
Community services - - - -
Public works - - - -
Capital Projects - - - -
Debt service - - - 2,534
Unassigned - - - -
Total Fund Balances - - - 2,534
Total Liabilities and Fund Balances $ - $ - $ - $ 2,534
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Total
Governmental
Funds
Assets:
Pooled cash and investments
$ 18,933,523
Receivables:
Accounts
313,423
Notes and loans
4,110,651
Accrued interest
5,548
Due from other governments
220,406
Total Assets
$ 23,583,551
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 8,312
Deferred revenues
2,053,922
Unearned revenues
353,736
Deposits payable
224,906
Due to other governments
3,546,921
Due to other funds
14,174
Advances from other funds
2,935,414
Total Liabilities
9,137,385
Fund Balances:
Nonspendable:
Notes and loans
2,065,611
Restricted for:
Planning and development projects
2,724,240
Public safety
245,187
Community services
11,162,057
Public works
145,823
Capital Projects
4,089,156
Debt service
2,534
Unassigned
(5,988,442)
Total Fund Balances
14,446,166
Total Liabilities and Fund Balances
$ 23,583,551
a
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91
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012
Special Revenue Funds
Federal
State Gas Tax
Library
Assistance SLEBG
Revenues:
Taxes
$ -
$ -
$ - $ -
Assessments
-
-
- -
Intergovernmental
1,224,692
2,546,568
13,540 100,000
Charges for services
-
-
- -
Use of money and property
1,357
824
- 177
Developer participation
-
-
- -
Miscellaneous
-
-
- -
Total Revenues
1,226,049
2,547,392
13,540 100,177
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
-
-
-
-
Community services
-
1,504,944
-
-
Public works
1,473,801
-
-
-
Capital outlay
-
-
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total Expenditures
1,473,801
1,504,944
-
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(247,752)
1,042,448
13,540
100,177
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
-
-
(22,422)
(145,029)
Proceeds from sale of capital asset
-
-
-
-
Total Other Financing Sources
(Uses)
-
-
(22,422)
(145,029)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
-
-
-
-
Net Change in Fund Balances
(247,752)
1,042,448
(8,882)
(44,852)
Fund Balances, Beginning of Year
372,473
963,939
-
71,315
Fund Balances, End of Year
$ 124,721
$ 2,006,387
$ (8,882)
$ 26,463
92
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012 (Continued)
Special Revenue Funds
Congestion
Lighting and
Management
Indian Gaming
Landscaping
Quimby
Air Quality
Revenues:
Taxes
$ -
$ -
$ -
$ -
Assessments
-
950,292
-
-
Intergovernmental
105,844
-
-
272,503
Charges for services
-
-
-
-
Use of money and property
-
-
19,499
-
Developer participation
-
-
7,123
-
Miscellaneous
-
-
-
-
Total Revenues
105,844
950,292
26,622
272,503
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
-
-
-
-
Community services
-
-
-
-
Public works
-
953,072
-
-
Capital outlay
-
-
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total Expenditures
-
953,072
-
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
105,844
(2,780)
26,622
272,503
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
(105,844)
-
(159,281)
(272,503)
Proceeds from sale of capital asset
-
-
-
-
Total Other Financing Sources
(Uses)
(105,844)
-
(159,281)
(272,503)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
-
-
-
-
Net Change in Fund Balances
-
(2,780)
(132,659)
-
Fund Balances, Beginning of Year
-
23,882
8,422,836
-
Fund Balances, End of Year
$ -
$ 21,102
$ 8,290,177
$ -
93
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012
Special Revenue Funds
Art in Public
South Coast
Public Safety
Places
Air Quality
AB 939
Revenues:
Taxes
$ -
$ -
$ -
$ -
Assessments
-
-
-
-
Intergovernmental
-
-
58,674
-
Charges for services
-
-
-
Use of money and property
72
2,148
161
1,968
Developer participation
-
62,680
-
-
Miscellaneous
-
-
-
-
Total Revenues
72
64,828
58,835
1,968
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
-
-
19,005
86,696
Community services
-
15,088
-
-
Public works
-
-
-
-
Capital outlay
-
45,786
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total Expenditures
-
60,874
19,005
86,696
Excess (Deficiency) of Revenues
Over (Under) Expenditures
72
3,954
39,830
(84,728)
Other Financing Sources (Uses):
Transfers in
2,000
-
-
-
Transfers out
-
-
(25,368)
(64,663)
Proceeds from sale of capital asset
-
-
-
-
Total Other Financing Sources
(Uses)
2,000
-
(25,368)
(64,663)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
-
-
-
-
Net Change in Fund Balances
2,072
3,954
14,462
(149,391)
Fund Balances, Beginning of Year
25,049
861,539
64,296
1,075,241
Fund Balances, End of Year
$ 27,121
$ 865,493
$ 78,758
$ 925,850
94
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30. 2012 (Continued)
Special Revenue Funds
Justice
Development Law Proposition Assistance
Agreement Enforcement 1 B Grant
Revenues:
Taxes $ - $ - $ - $ -
Assessments - - - -
Intergovernmental - 241,917 64,316 14,749
Charges for services - - - -
Use of money and property - 90 1,396 -
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year $
- 242,007
65,712
14,749
- 50,404
-
-
- 50,404
-
-
- 191,603
65,712
14,749
- -
(65,712)
(14,749)
- -
(65,712)
(14,749)
- 191,603
-
-
- $ 191,603
95
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30. 2012
Capital
Projects
Special Revenue Funds
Funds
Housing
Low/Moderate
Low/Moderate
Authority PA
Income Housing
Income Housing
No. 1
PA No. 1
PA No. 2
Infrastructure
Revenues:
Taxes
$ -
$ 4,123,224
$ 2,341,482
$ -
Assessments
-
-
-
-
Intergovernmental
-
-
-
-
Charges for services
-
-
-
-
Use of money and property
365,958
13,419
35,160
774
Developer participation
-
-
-
-
Miscellaneous
-
1,468
8,745
-
Total Revenues
365,958
4,138,111
2,385,387
774
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
424,186
774,816
391,937
-
Community services
-
-
-
-
Public works
-
-
-
-
Capital outlay
-
-
-
-
Debt service:
Principal retirement
-
1,635,775
620,135
-
Interest and fiscal charges
-
1,746,648
932,376
-
Total Expenditures
424,186
4,157,239
1,944,448
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(58,228)
(19,128)
440,939
774
Other Financing Sources (Uses):
Transfers in
-
2,695,719
-
-
Transfers out
(28,321)
(1,704,941)
(2,112,912)
(140,775)
Proceeds from sale of capital asset
875,275
-
-
-
Total Other Financing Sources
(Uses)
846,954
990,778
(2,112,912)
(140,775)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
2,067,559
(11,464,844)
(21,269,373)
-
Net Change in Fund Balances
2,856,285
(10,493,194)
(22,941,346)
(140,001)
Fund Balances, Beginning of Year
928,958
10,493,194
22,941,346
407,802
Fund Balances, End of Year
$ 3,785,243
$ -
$ -
$ 267,801
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012 (Continued)
Capital Projects Funds
Parks and
Library
Community
Transportation
Recreation
Development
Center
Revenues:
Taxes
$ -
$ -
$ -
$ -
Assessments
-
-
-
-
Intergovernmental
-
-
-
-
Charges for services
-
-
-
-
Use of money and property
7,383
-
-
3,018
Developer participation
344,593
183,612
72,963
15,290
Miscellaneous
80,000
-
-
-
Total Revenues
431,976
183,612
72,963
18,308
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
-
-
-
-
Community services
-
-
-
-
Public works
-
-
-
-
Capital outlay
-
-
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
72,523
6,586
9,514
-
Total Expenditures
72,523
6,586
9,514
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
359,453
177,026
63,449
18,308
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
(1,230,979)
-
-
-
Proceeds from sale of capital asset
-
-
-
-
Total Other Financing Sources
(Uses)
(1,230,979)
-
-
-
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
-
-
-
-
Net Change in Fund Balances
(871,526)
177,026
63,449
18,308
Fund Balances, Beginning of Year
3,493,531
(1,360,842)
(1,923,779)
1,181,042
Fund Balances, End of Year
$ 2,622,005
$ (1,183,816)
$ (1,860,330)
$ 1,199,350
97
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012
Capital Projects Funds
2011 Low/Mod
Street Facility
Park Facility
Fire Facility
Bond
Revenues:
Taxes
$ -
$ -
$ -
$ -
Assessments
-
-
-
-
Intergovernmental
-
-
-
-
Charges for services
-
-
-
-
Use of money and property
-
1
-
3,134
Developer participation
12,758
4,422
15,514
-
Miscellaneous
-
-
-
-
Total Revenues
12,758
4,423
15,514
3,134
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
-
-
-
-
Community services
-
-
-
-
Public works
-
-
-
-
Capital outlay
-
-
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
9,772
-
4,593
8,678
Total Expenditures
9,772
-
4,593
8,678
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,986
4,423
10,921
(5,544)
Other Financing Sources (Uses):
Transfers in
4,423
-
-
-
Transfers out
-
(4,423)
-
-
Proceeds from sale of capital asset
-
-
-
-
Total Other Financing Sources
(Uses)
4,423
(4,423)
-
-
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
-
-
-
(25,529,926)
Net Change in Fund Balances
7,409
-
10,921
(25,535,470)
Fund Balances, Beginning of Year
(2,029,181)
-
(924,563)
25,535,470
Fund Balances, End of Year
$ (2,021,772)
$ -
$ (913,642)
$ -
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012 (Continued)
Debt Service
Capital Projects Funds Funds
Revenues:
Taxes
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital asset
Total Other Financing Sources
(Uses)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
2004
Low/Mod Redevelopment Redevelopment Financing
Bond Agency PA No. 1 Agency PA No. 2 Authority
- - - 9,107
255 1,106 54,632 674,859
255 1,106 54,632 683,966
8,075
276,642 132,230 -
-
-
-
445,000
-
-
-
228,521
-
276,642
132,230
681,596
255
(275,536)
(77,598)
2,370
-
47,130
-
-
(309,461)
(1,294,749)
(288,212)
(2,695,719)
(309,461)
(1,247,619)
(288,212)
(2,695,719)
(2,997,949)
(21,503,166)
(4,203,975)
-
(3,307,155)
(23,026,321)
(4,569,785)
(2,693,349)
3,307,155
23,026,321
4,569,785
2,695,883
$ -
$ -
$ -
$ 2,534
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2012
Revenues:
Taxes
Assessments
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total
Governmental
Funds
$ 6,464,706
950,292
4,642,803
9,107
1,187,391
718,955
90,213
Total Revenues 14,063,467
Expenditures:
Current:
General government
8,075
Public safety
50,404
Planning and development
2,105,512
Community services
1,520,032
Public works
2,426,873
Capital outlay
45,786
Debt service:
Principal retirement
2,700,910
Interest and fiscal charges
3,019,211
Total Expenditures
11,876,803
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,186,664
Other Financing Sources (Uses):
Transfers in
2,749,272
Transfers out
(10,686,063)
Proceeds from sale of capital asset
875,275
Total Other Financing Sources
(Uses)
(7,061,516)
Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 23)
(84,901,674)
Net Change in Fund Balances
(89,776,526)
Fund Balances, Beginning of Year
104,222,692
Fund Balances, End of Year
$ 14,446,166
100
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 372,473
$ 372,473
$ 372,473
$ -
994,700
994,700
1,224,692
229,992
200
200
1,357
1,157
1,367,373
1,367,373
1,598,522
231,149
994,900
1,367,373
1,473,801
(106,428)
994,900
1,367,373
1,473,801
(106,428)
$ 372,473
$ -
$ 124,721
$ 124,721
101
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 963,939 $ 963,939 $ 963,939 $ -
Resources (Inflows):
Intergovernmental
2,123,900
2,123,900
2,546,568
422,668
Use of money and property
6,400
6,400
824
(5,576)
Amounts Available for Appropriation
3,094,239
3,094,239
3,511,331
417,092
Charges to Appropriation (Outflow):
Community services
1,776,094
1,776,094
1,504,944
271,150
Total Charges to Appropriations
1,776,094
1,776,094
1,504,944
271,150
Budgetary Fund Balance, June 30
$ 1,318,145
$ 1,318,145
$ 2,006,387
$ 688,242
102
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ -
$ -
$ -
$ -
Resources (Inflows):
Intergovernmental
175,000
145,833
13,540
(132,293)
Amounts Available for Appropriation
175,000
145,833
13,540
(132,293)
Charges to Appropriation (Outflow):
Transfers out
175,000
145,833
22,422
123,411
Total Charges to Appropriations
175,000
145,833
22,422
123,411
Budgetary Fund Balance, June 30
$ -
$ -
$ (8,882)
$ (8,882)
103
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 71,315
$ 71,315
$ 71,315
$ -
Resources (Inflows):
Intergovernmental
-
100,000
100,000
-
Use of money and property
-
300
177
(123)
Amounts Available for Appropriation
71,315
171,615
171,492
(123)
Charges to Appropriation (Outflow):
Transfers out
-
145,029
145,029
-
Total Charges to Appropriations
-
145,029
145,029
-
Budgetary Fund Balance, June 30
$ 71,315
$ 26,586
$ 26,463
$ (123)
104
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
105,844 105,844 105,844
105,844 10 5, 844 10 5, 844
105,844 105,844 105,844
105,844 105,844 105,844
Budgetary Fund Balance, June 30
105
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPING
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 23,882
$ 23,882
$ 23,882
$ -
Resources (Inflows):
Assessments
964,219
979,114
950,292
(28,822)
Amounts Available for Appropriation
988,101
1,002,996
974,174
(28,822)
Charges to Appropriation (Outflow):
Public works
1,002,996
1,002,996
953,072
49,924
Total Charges to Appropriations
1,002,996
1,002,996
953,072
49,924
Budgetary Fund Balance, June 30
$ (14,895)
$ -
$ 21,102
$ 21,102
1:
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 8,422,836
$ 8,422,836
$ 8,422,836
$ -
Resources (Inflows):
Use of money and property
20,000
20,000
19,499
(501)
Developer participation
30,000
30,000
7,123
(22,877)
Amounts Available for Appropriation
8,472,836
8,472,836
8,449,458
(23,378)
Charges to Appropriation (Outflow):
Community services
-
200,000
-
200,000
Transfers out
325,000
8,269,543
159,281
8,110,262
Total Charges to Appropriations
325,000
8,469,543
159,281
8,310,262
Budgetary Fund Balance, June 30
$ 8,147,836
$ 3,293
$ 8,290,177
$ 8,286,884
107
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CONGESTION MANAGEMENT AIR QUALITY FUND
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
- 416,026 272,503 (143,523)
416,026 272,503 (143,523)
- 416,026 272,503 143,523
416,026 272,503 143,523
108
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 25,049 $ 25,049 $ 25,049 $ -
100 100 72 (28)
2,000 2,000 2,000 -
27,149 27,149 27,121 (28)
2,000 2,000 - 2,000
2,000 2,000 - 2,000
$ 25,149 $ 25,149 $ 27,121 $ 1,972
109
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 861,539
$ 861,539
$ 861,539
$ -
Resources (Inflows):
Use of money and property
2,300
2,300
2,148
(152)
Developer participation
97,500
97,500
62,680
(34,820)
Amounts Available for Appropriation
961,339
961,339
926,367
(34,972)
Charges to Appropriation (Outflow):
Community services
24,700
24,700
15,088
9,612
Capital outlay
111,500
111,500
45,786
65,714
Transfers out
200,000
400,000
-
400,000
Total Charges to Appropriations
336,200
536,200
60,874
475,326
Budgetary Fund Balance, June 30
$ 625,139
$ 425,139
$ 865,493
$ 440,354
110
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 64,296
$ 64,296
$ 64,296
$ -
Resources (Inflows):
Intergovernmental
40,000
65,368
58,674
(6,694)
Use of money and property
200
200
161
(39)
Amounts Available for Appropriation
104,496
129,864
123,131
(6,733)
Charges to Appropriation (Outflow):
Planning and development
40,200
16,200
19,005
(2,805)
Transfers out
-
25,368
25,368
-
Total Charges to Appropriations
40,200
41,568
44,373
(2,805)
Budgetary Fund Balance, June 30
$ 64,296
$ 88,296
$ 78,758
$ (9,538)
111
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 1,075,241 $ 1,075,241 $ 1,075,241 $ -
4,300 4,300 1,968 (2,332)
1,079,541 1,079,541 1,077,209 (2,332)
114,080 126,305 86,696 39,609
- 268,146 64,663 203,483
114,080 394,451 151,359 243,092
$ 965,461 $ 685,090 $ 925,850 $ 240,760
112
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
241,025 241,917 892
- - 90 90
241,025 242,007 982
- 51,808 50,404 1,404
51,808 50,404 1,404
$ - $ 189,217 $ 191,603 $ 2,386
113
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION 1 B
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
- 352,382 64,316 (288,066)
- - 1,396 1,396
352,382 65,712 (286,670)
352,382 65,712 286,670
352,382 65,712 286,670
Budgetary Fund Balance, June 30
114
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
JUSTICE ASSISTANCE GRANT
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ - $ -
$ -
$ -
Resources (Inflows):
Intergovernmental
- 16,152
14,749
(1,403)
Amounts Available for Appropriation
- 16,152
14,749
(1,403)
Charges to Appropriation (Outflow):
Transfers out
- 16,152
14,749
1,403
Total Charges to Appropriations
- 16,152
14,749
1,403
Budgetary Fund Balance, June 30
$ - $ -
$ -
$ -
115
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY PA NO. 1
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 928,958
$ 928,958
$ 928,958
$ -
Resources (Inflows):
Use of money and property
243,800
243,800
365,958
122,158
Transfers in
-
2,035,388
-
(2,035,388)
Proceeds from sale of capital asset
125,000
590,000
875,275
285,275
Amounts Available for Appropriation
1,297,758
3,798,146
2,170,191
(1,627,955)
Charges to Appropriation (Outflow):
Planning and development
368,112
1,100,625
424,186
676,439
Transfers out
-
69,497
28,321
41,176
Extraordinary gain/(loss) on dissolution
of redevelopment agency
-
-
(2,067,559)
2,067,559
Total Charges to Appropriations
368,112
1,170,122
(1,615,052)
2,785,174
Budgetary Fund Balance, June 30
$ 929,646
$ 2,628,024
$ 3,785,243
$ 1,157,219
116
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 10,493,194
$10,493,194
$ 10,493,194
$ -
Resources (Inflows):
Taxes
8,802,400
4,123,224
4,123,224
Use of money and property
44,600
44,600
13,419
(31,181)
Miscellaneous
-
-
1,468
1,468
Transfers in
-
6,535,056
2,695,719
(3,839,337)
Amounts Available for Appropriation
19,340,194
21,196,074
17,327,024
(3,869,050)
Charges to Appropriation (Outflow):
Planning and development
2,868,136
2,604,751
774,816
1,829,935
Debt service:
Principal retirement
-
1,635,775
1,635,775
-
Interest and fiscal charges
-
3,850,670
1,746,648
2,104,022
Transfers out
8,357,965
6,101,691
1,704,941
4,396,750
Extraordinary gain/(loss) on dissolution
of redevelopment agency
-
-
11,464,844
(11,464,844)
Total Charges to Appropriations
11,226,101
14,192,887
17,327,024
(3,134,137)
Budgetary Fund Balance, June 30
$ 8,114,093
$ 7,003,187
$ -
$ (7,003,187)
117
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 2
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 22,941,346
$22,941,346
$ 22,941,346
$ -
Resources (Inflows):
Taxes
4,800,480
2,341,482
2,341,482
Use of money and property
60,800
60,800
35,160
(25,640)
Miscellaneous
-
-
8,745
8,745
Transfers in
-
1,651,794
-
(1,651,794)
Amounts Available for Appropriation
27,802,626
26,995,422
25,326,733
(1,668,689)
Charges to Appropriation (Outflow):
Planning and development
1,231,960
1,040,010
391,937
648,073
Debt service:
Principal retirement
-
595,650
620,135
(24,485)
Interest and fiscal charges
-
1,872,502
932,376
940,126
Transfers out
4,634,386
12,126,274
2,112,912
10,013,362
Extraordinary gain/(loss) on dissolution
of redevelopment agency
-
-
21,269,373
(21,269,373)
Total Charges to Appropriations
5,866,346
15,634,436
25,326,733
(9,692,297)
Budgetary Fund Balance, June 30
$ 21,936,280
$11,360,986
$ -
$ (11,360,986)
118
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 1,154,860
$ 1,154,860
$ 1,154,860
$ -
Resources (Inflows):
Intergovernmental
12,242,911
23,242,544
2,425,180
(20,817,364)
Developer participation
202,200
509,704
101,699
(408,005)
Transfers in
7,751,183
87,666,834
9,394,375
(78,272,459)
Amounts Available for Appropriation
21,351,154
112,573,942
13,076,114
(99,497,828)
Charges to Appropriation (Outflow):
Capital outlay
20,196,294
111,475,030
13,119,645
98,355,385
Transfers out
-
-
47,130
(47,130)
Total Charges to Appropriations
20,196,294
111,475,030
13,166,775
98,308,255
Budgetary Fund Balance, June 30
$ 1,154,860
$ 1,098,912
$ (90,661)
$ (1,189,573)
119
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (7,012,033)
$ (7,012,033)
$ (7,012,033)
$ -
Resources (Inflows):
Developer participation
127,600
69,482
82,490
13,008
Amounts Available for Appropriation
(6,884,433)
(6,942,551)
(6,929,543)
13,008
Charges to Appropriation (Outflow):
General government
202,056
202,056
204,787
(2,731)
Debt service:
Interest and fiscal charges
35,000
35,000
35,160
(160)
Total Charges to Appropriations
237,056
237,056
239,947
(2,891)
Budgetary Fund Balance, June 30
$ (7,121,489)
$ (7,179,607)
$ (7,169,490)
$ 10,117
120
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INFRASTRUCTURE
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 407,802 $ 407,802 $ 407,802 $ -
100 300 774 474
407,902 408,102 408,576 474
- 393,074 140,775 252,299
- 393,074 140,775 252,299
$ 407,902 $ 15,028 $ 267,801 $ 252,773
121
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 3,493,531
$ 3,493,531
$ 3,493,531
$ -
Resources (Inflows):
Use of money and property
1,800
1,800
7,383
5,583
Developer participation
441,500
353,410
344,593
(8,817)
Miscellaneous
80,000
80,000
80,000
-
Amounts Available for Appropriation
4,016,831
3,928,741
3,925,507
(3,234)
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
-
76,802
72,523
4,279
Transfers out
1,163,104
4,078,612
1,230,979
2,847,633
Total Charges to Appropriations
1,163,104
4,155,414
1,303,502
2,851,912
Budgetary Fund Balance, June 30
$ 2,853,727
L (226,673)
$ 2,622,005
$ 2,848,678
122
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer participation
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (1,360,842) $ (1,360,842) $ (1,360,842) $ -
89,200 167,556 183,612 16,056
(1,271,642) (1,193,286) (1,177,230) 16,056
7,100 7,100 6,586 514
7,100 7,100 6,586 514
Budgetary Fund Balance, June 30 $ (1,278,742) $ (1,200,386) $ (1,183,816) $ 16,570
123
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ (1,923,779) $ (1,923,779) $ (1,923,779) $ -
Resources (Inflows):
Developer participation
35,500
66,573
72,963
6,390
Amounts Available for Appropriation
(1,888,279)
(1,857,206)
(1,850,816)
6,390
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
9,800
9,800
9,514
286
Total Charges to Appropriations
9,800
9,800
9,514
286
Budgetary Fund Balance, June 30
$ (1,898,079)
$ (1,867,006)
$ (1,860,330) $
6,676
124
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer participation
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 1,181,042
$ 1,181,042
$ 1,181,042
$ -
5,900
5,900
3,018
(2,882)
7,400
13,958
15,290
1,332
1,194,342
1,200,900
1,199,350
(1,550)
$ 1,194,342
$ 1,200,900
$ 1,199,350
$ (1,550)
125
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer participation
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (2,029,181) $ (2,029,181) $ (2,029,181) $ -
17,800 13,508 12,758 (750)
2,200 2,200 4,423 2,223
(2,009,181) (2,013,473) (2,012,000) 1,473
10,000 10,000 9,772 228
10,000 10,000 9,772 228
Budgetary Fund Balance, June 30 $ (2,019,181) $ (2,023,473) $ (2,021,772) $ 1,701
126
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Use of money and property
Developer participation
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
- - 1 1
2,200 4,026 4,422 396
2,200 4,026 4,423 397
2,200 2,200 4,423 (2,223)
2,200 2,200 4,423 (2,223)
Budgetary Fund Balance, June 30 $ - $ 1,826 $ - $ (1,826)
127
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (924,563)
$ (924,563)
$ (924,563)
$ -
Resources (Inflows):
Developer participation
29,800
15,731
15,514
(217)
Amounts Available for Appropriation
(894,763)
(908,832)
(909,049)
(217)
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
4,700
4,700
4,593
107
Total Charges to Appropriations
4,700
4,700
4,593
107
Budgetary Fund Balance, June 30 $ (899,463) $ (913,532) $ (913,642) $ (110)
128
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
2011 LOW/MOD BOND
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Transfers out
Bond Issuance Costs
Extraordinary gain/(loss) on dissolution
of redevelopment agency
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 25,535,470 $ 25,535,470 $ 25,535,470 $ -
- 5,000 3,134 (1,866)
25,535,470 25,540,470 25,538,604 (1,866)
- - 8,678 (8,678)
- 25,526,567 - 25,526,567
- 11,000 - 11,000
- - 25,529,926 (25,529,926)
25,537,567 25,538,604 (1,037)
Budgetary Fund Balance, June 30 $ 25,535,470 $ 2,903 $ - $ (2,903)
129
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
2004 LOW/MOD BOND
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Extraordinary gain/(loss) on dissolution
of redevelopment agency
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 3,307,155 $ 3,307,155 $ 3,307,155 $ -
4,815 500 255 (245)
3,311,970 3,307,655 3,307,410 (245)
- 3,307,155 309,461 2,997,694
- - 2,997,949 (2,997,949)
3,307,155 3,307,410 (255)
Budgetary Fund Balance, June 30 $ 3,311,970 $ 500 $ - $ (500)
130
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVLOPMENT AGENCY PA NO. 1 - CAPITAL PROJECT
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers out
Extraordinary gain/(loss) on dissolution
of redevelopment agency
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 23,026,321
$ 23,026,321
$ 23,026,321
$ -
44,500
44,500
1,106
(43,394)
5,000,000
5,000,000
47,130
(4,952,870)
28,070,821
28,070,821
23,074,557
(4,996,264)
530,025
477,685
276,642
201,043
-
31,171,576
1,294,749
29,876,827
- - 21,503,166 (21,503,166)
530,025 31,649,261 23,074,557 8,574,704
Budgetary Fund Balance, June 30 $ 27,540,796 $ (3,578,440) $ - $ 3,578,440
131
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVLOPMENT AGENCY PA NO. 2 - CAPITAL PROJECT
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers out
Extraordinary gain/(loss) on dissolution
of redevelopment agency
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 4,569,785 $ 4,569,785 $ 4,569,785 $ -
- 76,802 54,632 (22,170)
1,650,000 1,650,000 - (1,650,000)
6,219,785 6,296,587 4,624,417 (1,672,170)
162,232 1,691,437 132,230 1,559,207
247,000 4,219,890 288,212 3,931,678
- - 4,203,975 (4,203,975)
409,232 5,911,327 4,624,417 1,286,910
Budgetary Fund Balance, June 30 $ 5,810,553 $ 385,260 $ - $ (385,260)
132
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 1 - DEBT SERVICE
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 745,343 $ 745,343 $ 745,343 $ -
Resources (Inflows):
Taxes
5,486,445
15,084,976
16,505,087
1,420,111
Use of money and property
3,000
3,000
(13,122)
(16,122)
Amounts Available for Appropriation
6,234,788
15,833,319
17,237,308
1,403,989
Charges to Appropriation (Outflow):
Community development
411,600
429,212
428,522
690
Debt service:
Principal retirement
4,374,077
3,947,652
3,947,652
-
Interest and fiscal charges
6,724,310
6,675,388
3,386,073
3,289,315
Pass -through agreement payments
19,377,273
9,150,705
8,986,409
164,296
Transfers out
10,011,098
13,976,264
488,652
13,487,612
Total Charges to Appropriations
40,898,358
34,179,221
17,237,308
16,941,913
Budgetary Fund Balance, June 30
$ (34,663,570)
$ (18,345,902)
$ -
$ 18,345,902
133
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 2 - DEBT SERVICE
YEAR ENDED JUNE 30, 2012
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Pass -through agreement payments
Transfers out
Extraordinary gain/(loss) on dissolution
of redevelopment agency
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 560,200
$ 560,200
$ 560,200
$ -
19,201,924
9,365,929
9,365,929
-
200
200
(15,571)
(15,771)
2,468,152
558,747
-
(558,747)
22,230,476
10,485,076
9,910,558
(574,518)
255,100
246,068
241,543
4,525
130,000
380,000
380,000
-
633,843
633,843
252,757
381,086
16,387,298
8,215,043
7,769,032
446,011
4,118,152
2,205,178
-
2,205,178
- - 1,267,226 (1,267,226)
21,524,393 11,680,132 9,910,558 1,769,574
Budgetary Fund Balance, June 30 $ 706,083 $ (1,195,056) $ - $ 1,195,056
134
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2012
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,695,883
$ 2,695,883
$ 2,695,883
$ -
Resources (Inflows):
Charges for services
11,600
11,600
9,107
(2,493)
Use of money and property
673,521
673,521
674,859
1,338
Transfers in
7,479,250
-
-
-
Amounts Available for Appropriation
10,860,254
3,381,004
3,379,849
(1,155)
Charges to Appropriation (Outflow):
General government
11,600
11,600
8,075
3,525
Debt service:
Principal retirement
3,824,531
3,824,531
445,000
3,379,531
Interest and fiscal charges
4,328,240
4,328,240
228,521
4,099,719
Transfers out
-
2,695,719
2,695,719
-
Total Charges to Appropriations
8,164,371
10,860,090
3,377,315
7,482,775
Budgetary Fund Balance, June 30
$ 2,695,883
$ (7,479,086)
$ 2,534
$ 7,481,620
135
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136
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to departments
within the City. Costs of materials and services used are accumulated in this fund and charged to the
user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
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.
137
CITY OF LA QUINTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2012
Assets:
Current:
Cash and investments
Receivables:
Accrued interest
Prepaid costs
Total Current Assets
Noncurrent:
Capital assets - net
of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Accrued compensated absences
Total Current Liabilities
Noncurrent:
Accrued compensated absences
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
Governmental Activities - Internal Service Funds
Equipment Information
Replacement Technology
Park
Equipment and
Facilities Totals
$ 2,039,419
$ 1,102,164
$ 653,038
$ 3,794,621
653
358
214
1,225
-
240
-
240
2,040,072
1,102,762
653,252
3,796,086
761,257
276,052
16,160,638
17,197,947
761,257
276,052
16,160,638
17,197,947
$ 2,801,329
$ 1,378,814
$ 16,813,890
$ 20,994,033
$ 11,264
$ 507
$ -
$ 11,771
-
3,948
-
3,948
-
4,078
-
4,078
11,264
8,533
-
19,797
-
5,635
-
5,635
-
5,635
-
5,635
11,264
14,168
-
25,432
761,257
276,052
16,160,638
17,197,947
2,028,808
1,088,594
653,252
3,770,654
2,790,065
1,364,646
16,813,890
20,968,601
$ 2,801,329
$ 1,378,814
$ 16,813,890
$ 20,994,033
138
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2012
Governmental Activities - Internal Service Funds
Operating Revenues:
Sales and service charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation expense
Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues(Expenses)
Income (Loss) Before Contributions
and Transfers
Capital contributions
Transfers in
Changes in Net Assets
Net Assets:
Beginning of Year
End of Fiscal Year
Equipment Information
Replacement Technology
$ 600,588 $ 485,522
29,553 -
Park
Equipment and
Facilities Totals
$ - $ 1,086,110
29,553
630,141
485,522
-
1,115,663
-
113,729
-
113,729
91,233
-
-
91,233
74,179
-
-
74,179
16,242
34,622
42,310
93,174
-
105,841
-
105,841
176,647
97,821
529,952
804,420
-
8,934
-
8,934
358,301
360,947
572,262
1,291,510
271,840
124,575
(572,262)
(175,847)
5,886
3,434
3,272
1,579
10,737
3,434
9,320 3,272 1,579 14,171
281,160 127,847 (570,683) (161,676)
- - 937,163 937,163
25,368 - - 25,368
306,528 127,847 366,480 800,855
2,483,537 1,236,799 16,447,410 20,167,746
$ 2,790,065 $ 1,364,646 $ 16,813,890 $ 20,968,601
139
CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2012
Governmental Activities - Internal Service Funds
Park
Equipment Information Equipment
Replacement Technology and Facilities Totals
Cash Flows from Operating Activities:
Cash received from customers and users
$ 630,141
$ 485,282 $ -
$ 1,115,423
Cash paid to suppliers for goods and services
(230,464)
(161,733) (49,279)
(441,476)
Cash paid to employees for services
-
(113,337) -
(113,337)
Net Cash Provided (Used) by Operating Activities
399,677
210,212 (49,279)
560,610
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in
25,368
- -
25,368
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
25,368 -
(7,530) (29,693)
O AOA
(4,096) (29,693)
25,368
(37,223)
O AOA
(33,789)
6,384
3,581
1,862
11,827
6,384
3,581
1,862
11,827
427,333
184,100
(47,417)
564,016
1,612,086
918,064
700,455
3,230,605
$ 2,039,419
$ 1,102,164
$ 653,038
$ 3,794,621
$ 271,840 $ 124,575 $ (572,262) $ (175,847)
176,647 97,821 529,952 804,420
- (240) - (240)
(48,810) (12,336) (6,969) (68,115)
94 - 94
nnn nnn
127,837 85,637 522,983 736,457
$ 399,677 $ 210,212 $ (49,279) $ 560,610
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds $
- $ - $ 937,163 $ 937,163
140
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.
141
CITY OF LA QUINTA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2012
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Total Assets
Liabilities:
Deposits payable
Total Liabilities
Assessment
Assessment District No.
District No. 97-1 2001-1 Totals
$ 128,183 $ 422,049 $ 550,232
- 9,041 9,041
39 125 164
$ 128,222 $ 431,215 $ 559,437
$ 128,222 $ 431,215 $ 559,437
$ 128,222 $ 431,215 $ 559,437
142
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2012
Balance
Balance
7/1/2011
Additions
Deductions
6/30/2012
Assessment District No. 97-1
Assets:
Pooled cash and investments
$
135,326
$
63,267
$
70,410
$
128,183
Receivables:
Taxes
1,210
-
1,210
-
Accrued interest
92
39
92
39
Total Assets
$
136,628
$
63,306
$
71,712
$
128,222
Liabilities:
Deposits payable
$
136,628
$
61,944
$
70,350
$
128,222
Total Liabilities
$
136,628
$
61,944
$
70,350
$
128,222
Assessment District No. 2001-1
Assets:
Pooled cash and investments
$
385,866
$
244,640
$
208,457
$
422,049
Receivables:
Taxes
12,153
9,041
12,153
9,041
Accrued interest
262
125
262
125
Total Assets
$
398,281
$
253,806
$
220,872
$
431,215
Liabilities:
Deposits payable
$
398,281
$
241,615
$
208,681
$
431,215
Total Liabilities
$
398,281
$
241,615
$
208,681
$
431,215
Totals - All Agency Funds
Assets:
Pooled cash and investments
$
521,192
$
307,907
$
278,867
$
550,232
Receivables:
Taxes
13,363
9,041
13,363
9,041
Accrued interest
354
164
354
164
Total Assets
$
534,909
$
317,112
$
292,584
$
559,437
Liabilities:
Deposits payable
$
534,909
$
303,559
$
279,031
$
559,437
Total Liabilities
$
534,909
$
303,559
$
279,031
$
559,437
143
THIS PAGE INTENTIONALLY LEFT BLANK
144
STATISTICAL SECTION
This part of the City of La Quinta's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the government's overall financial health.
Contents
Financial Trends
Page
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have changed
over time. 146
Revenue Capacity
These schedules obtain information to help the reader assess the
government's most significant local revenue source, the property tax. 158
Debt Capacity
These schedules present information to help the reader assess the ability of
the government's current levels of outstanding debt and the government's
ability to issue additional debt in the future. 164
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government's financial
activities that take place. 171
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates
to the services the government provides and the activities it performs. 174
145
CITY OF LA QUINTA
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
2006 2007
Governmental activities:
Invested in capital assets,
net of related debt $ 225,818,022 $ 249,059,500 $ 233,361,129 $ 253,559,117 $ 300,220,033
Restricted 40,038,313 44,415,966 43,421,857 65,159,623 49,277,895
Unrestricted 48,290,000 45,169,328 60,361,071 86,129,376 106,939,577
Total governmental activities net assets $ 314,146,335 $ 338,644,794 $ 337,144,057 $ 404,848,116 $ 456,437,505
Business -type activities:
Invested in capital assets,
net of related debt $ - $
Restricted -
Unrestricted -
Total business -type activities net assets $ - $
Primary government:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government net assets
Source: City of La Quinta
$ 41,300,846 $ 42,075,172 $ 42,692,025
(626,658) (1,665,646) (2,385,462)
$ 40,674,188 $ 40,409,526 $ 40,306,563
$ 225,818,022
$ 249,059,500
$ 274,661,975 $
295,634,289
$ 342,912,058
40,038,313
44,415,966
43,421,857
65,159,623
49,277,895
48,290,000
45,169,328
59,734,413
84,463,730
104,554,115
$ 314,146,335
$ 338,644,794
$ 377,818,245 $
445,257,642
$ 496,744,068
146
TABLE 1
2008 2009 2010 2011 2012
$ 343,019,328 $ 323,669,955 $ 336,459,272 $ 276,787,752 $ 534,388,479
86,041,189 105,297,168 96,332,870 107,042,126 26,585,382
79,642,102 96,654,981 77,187,433 97,009,428 89,832,811
$ 508,702,619 $ 525,622,104 $ 509,979,575 $ 480,839,306 $ 650,806,672
$ 42,778,015 $ 42,536,608 $ 42,879,482 $ 42,491,051 $ 42,105,683
(3,109,524) (3,937,454) (4,863,848) (4,918,951) (4,745,892)
$ 39,668,491 $ 38,599,154 $ 38,015,634 $ 37,572,100 $ 37,359,791
$ 385,797,343 $ 366,206,563 $ 379,338,754 $ 319,278,803 $ 576,494,162
86,041,189 105,297,168 96,332,870 107,042,126 26,585,382
76,532,578 92,717,527 72,323,585 92,090,477 85,086,919
$ 548,371,110 $ 564,221,258 $ 547,995,209 $ 518,411,406 $ 688,166,463
147
Expenses:
Governmental activities:
General government
Public safety
Community services
Planning and development
Public works
Contribution to other agencies
Interest on long-term debt
Total governmental activities expenses
Business -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 assets:
Governmental activities:
Taxes:
Property taxes
Tax increment
Sales tax
Transient occupancy taxes
Franchise taxes
Business license taxes
Othertaxes
Investment income
Motor vehicle in lieu, unrestricted
Gain (loss) on sale of capital assets
Miscellaneous
Extraordinary gain/loss on dissolution of RDA
Transfers
Total governmental activities
Business -type activities:
Investment income
Gain (loss) on sale of capital assets
Transfers
Total business -type activities
Total primary government
Changes in net assets
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
CITY OF LA QUINTA
Changes in
Net Assets
Last Ten Fiscal
Years
(accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
2007
$ 3,203,462
$ 4,319,778
$ 3,595,906
$ 4,229,871
$ 6,284,342
8,547,005
10,256,463
8,512,875
9,065,244
12,724,100
1,321,825
1,446,999
1,157,141
1,426,033
4,299,453
19,083,860
7,526,977
5,752,239
5,906,915
7,736,520
6,785,759
6,003,013
9,101,582
10,006,335
10,511,874
8,555,401
9,658,779
15,265,051
15,494,656
15,163,422
47,497,312
39,212,009
43,384,794
46,129,054
56,719,711
-
1,877,291
4,523,146
4,520,173
1,877,291
4,523,146
4,520,173
47,497,312
39,212,009
45,262,085
50,652,200
61,239,884
298,749
337,376
445,663
717,849
60,530
2,917,866
4,004,621
4,438,115
4,168,206
2,659,515
611,278
662,737
754,938
1,873,676
169,643
205,806
252,677
252,501
428,947
387,065
1,594,225
1,813,993
2,815,703
3,021,379
2,244,156
1,797,031
1,799,503
1,935,578
3,603,173
3,796,495
5,160,405
12,090,143
18,591,423
33,918,901
17,601,131
12,585,360
20,961,050
29,233,921
47,732,131
26,918,535
-
-
1,091,836
3,120,728
3,540,748
1,091,836
3,120,728
3,540,748
12,585,360
20,961,050
30,325,757
50,852,859
30,459,283
(continued)
(continued)
(continued)
(continued)
(continued)
(34,911,952)
(18,250,959)
(14,150,873)
1,603,077
(29,801,176)
(785,455)
(1,402,418)
(979,425)
(34,911,952)
(18,250,959)
(14,936,328)
200,659
(30,780,601)
1,800,616
2,198,141
2,579,245
3,679,079
4,999,051
21,191,832
24,450,337
24,443,112
35,168,329
42,583,031
4,345,381
5,240,037
6,773,566
7,613,075
8,896,716
4,036,290
4,261,767
4,831,338
5,437,238
5,448,361
690,544
895,810
1,185,087
1,044,470
1,259,985
186,220
191,062
251,618
276,917
307,032
513,934
675,996
1,141,177
1,049,701
872,753
1,353,868
1,738,505
4,336,050
6,319,502
11,854,951
1,768,091
1,608,151
2,453,642
2,740,233
3,291,055
-
-
3,717,470
1,967,292
-
513,876
1,489,612
2,397,474
1,943,093
2,052,246
(41,459,643) +
(1,137,203) +
(874,645)
36,400,652
42,749,418
12,650,136
66,101,726
80,690,536
-
-
-
553
1,817
- +
41,459,643 +
1,137,203 +
874,645
41,459,643
1,137,756
876,462
36,400,652
42,749,418
54,109,779
67,239,482
81,566,998
1,488,700
24,498,459
(1,500,737)
67,704,803
50,889,360
40,674,188
(264,662)
(102,963)
$ 1,488,700
$ 24,498,459
$ 39,173,451
$ 67,440,141
$ 50,786,397
148
TABLE 2
2008 2009 2010 2011 2012
$ 6,953,073
$ 7,836,146
$ 34,287,068
$ 11,283,358
$ 6,183,712
13,472,036
19,736,941
21,274,519
21,070,458
20,815,454
5,797,116
14,808,850
15,923,380
4,735,964
5,093,402
35,323,858
7,317,689
5,173,326
18,715,283
6,378,352
11, 097, 526
11,100, 833
12, 326, 726
10, 757, 279
13, 288, 521
-
-
-
31,324,064
-
15,522,441
15,631,438
15,330,603
14,353,359
3,021,496
88,166,050
76,431,897
104,315,622
112,239,765
54,780,937
4,761,581
4,440,546
4,169,768
4,202,274
4,085,282
4,761,581
4,440,546
4,169,768
4,202,274
4,085,282
92,927,631
80,872,443
108,485,390
116,442,039
58,866,219
8,328
25,053
21,439
47,696
86,869
2,050,492
1,373,952
1,100, 491
1,044,399
1,020,822
134,211
138,391
69,391
74,471
68,470
374,092
275,178
250,557
210,151
247,397
1,900,437
1,308,702
1,124,647
1,086,771
1,080,744
5,905,664
10, 725, 280
15, 363, 650
13,152, 942
11, 289, 673
50,090,419
10,647,270
5,974,311
3,157,828
9,990,793
60,463,643
24,493,826
23,904,486
18,774,258
23,784,768
3,814,233
3,368,135
3,584,996
3,756,615
3,871,898
352,687
4,166,920
3,368,135
3,584,996
3,756,615
3,871,898
64,630,563
27,861,961
27,489,482
22,530,873
27,656,666
(continued)
(continued)
(continued)
(continued)
(continued)
(27,702,407) (51,938,071) (80,411,136) (93,465,507) (30,996,169)
(594,661) (1,072,411) (584,772) (445,659) (213,384)
(28,297,068) (53,010,482) (80,995,908) (93,911,166) (31,209,553)
6,014,305
6,653,583
6,278,470
5,942,353
21,370,476
42,114,893
36,702,197
35,390,317
32,569,795
-
8,492,213
7,279,513
6,927,388
7,323,835
7,713,741
5,327,203
4,480,467
4,265,438
4,737,968
5,446,883
1,748,082
1,533,249
1,585,427
1,607,829
1,687,440
317,011
285,304
302,223
285,270
293,592
641,705
455,089
461,957
437,235
428,963
10,230,489
7,387,244
5,362,684
4,693,974
1,925,255
3,803,647
3,940,801
3,714,437
3,515,395
3,173,826
57,346
21,542
2,330
-
-
1,220,627
118,567
477,936
3,211,584
268,644
-
-
-
-
158,654,715
79,967,521
68,857,556
64,768,607
64,325,238
200,963,535
4,310
3,074
1,252
2,125
1,075
(47,721)
-
-
-
-
(43,411)
3,074
1,252
2,125
1,075
79,924,110
68,860,630
64,769,859
64,327,363
200,964,610
52,265,114
16,919,485
(15,642,529)
(29,140,269)
169,967,366
(638,072)
(1,069,337)
(583,520)
(443,534)
(212,309)
$ 51,627,042
$ 15,850,148
$ (16 226,049)
$ (29,583 803)
$ 169,755,057
149
CITY OF LA QUINTA
Changes in Net Assets - Governmental Activities
Last Ten
Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
2007
Expenses:
General government
$ 3,203,462
$ 4,319,778
$ 3,595,906
$ 4,229,871
$ 6,284,342
Public safety
8,547,005
10,256,463
8,512,875
9,065,244
12,724,100
Community services
1,321,825
1,446,999
1,157,141
1,426,033
4,299,453
Planning and development
19,083,860
7,526,977
5,752,239
5,906,915
7,736,520
Public works
6,785,759
6,003,013
9,101,582
10,006,335
10,511,874
Contribution to other agencies
-
-
-
-
-
Interest on long-term debt
8,555,401
9,658,779
15,265,051
15,494,656
15,163,422
Total governmental activities expenses
47,497,312
39,212,009
43,384,794
46,129,054
56,719,711
Program revenues:
Charges for services:
General government
298,749
337,376
445,663
717,849
60,530
Public safety
2,917,866
4,004,621
4,438,115
4,168,206
2,659,515
Community services
205,806
252,677
252,501
428,947
387,065
Planning and development
611,278
662,737
754,938
1,873,676
169,643
Public works
1,594,225
1,813,993
2,815,703
3,021,379
2,244,156
Operating grants and contributions
1,797,031
1,799,503
1,935,578
3,603,173
3,796,495
Capital grants and contributions
5,160,405
12,090,143
18,591,423
33,918,901
17,601,131
Total governmental activities
program revenues
12,585,360
20,961,050
29,233,921
47,732,131
26,918,535
Net program revenues (expenses)
(34,911,952)
(18,250,959)
(14,150,873)
1,603,077
(29,801,176)
General revenues and other changes in net assets:
Taxes:
Property taxes
1,800,616
2,198,141
2,579,245
3,679,079
4,999,051
Tax increment
21,191,832
24,450,337
24,443,112
35,168,329
42,583,031
Sales tax
4,345,381
5,240,037
6,773,566
7,613,075
8,896,716
Transient occupancy taxes
4,036,290
4,261,767
4,831,338
5,437,238
5,448,361
Franchise tax
690,544
895,810
1,185,087
1,044,470
1,259,985
Business license taxes
186,220
191,062
251,618
276,917
307,032
Othertax
513,934
675,996
1,141,177
1049701
872,753
Motor vehicle in lieu, unrestricted
1,768,091
1,608,151
2,453,642
2740233
3,291,055
Investment income
1,353,868
1,738,505
4,336,050
6319502
11,854,951
Gain (loss) on sale of capital assets
-
-
3,717,470
1967292
-
Miscellaneous
513,876
1,489,612
2,397,474
1943093
2,052,246
Extraordinary gain/loss on dissolution of RDA
-
-
-
0
-
Transfers
-
-
(41,459,643)
(1,137,203)
(874,645)
Total governmental activities
36,400,652
42,749,418
12,650,136
66,101,726
80,690,536
Changes in net assets -
governmental activities
$ 1,488,700
$ 24,498,459
$ (1,500,737)
$ 67,704,803
$ 50,889,360
Source: City of La Quinta
150
Table 3
2008
2009
2010
2011
2012
$ 6,953,073
$ 7,836,146
$ 34,287,068
$ 11,283,358
$ 6,183,712
13,472,036
19,736,941
21,274,519
21,070,458
20,815,454
5,797,116
14,808,850
15,923,380
4,735,964
5,093,402
35,323,858
7,317,689
5,173,326
18,715,283
6,378,352
11,097,526
11,100,833
12,326,726
10,757,279
13,288,521
-
-
-
31,324,064
-
15,522,441
15,631,438
15,330,603
14,353,359
3,021,496
88,166,050
76,431,897
104,315,622
112,239,765
54,780,937
8,328
25,053
21,439
47,696
86,869
2,050,492
1,373,952
1,100,491
1,044,399
1,020,822
374,092
275,178
250,557
210,151
247,397
134,211
138,391
69,391
74,471
68,470
1,900,437
1,308,702
1,124,647
1,086,771
1,080,744
5,905,664
10,725,280
15,363,650
13,152,942
11,289,673
50,090,419
10,647,270
5,974,311
3,157,828
9,990,793
60,463,643
24,493,826
23,904,486
18,774,258
23,784,768
(27,702,407)
(51,938,071)
(80,411,136)
(93,465,507)
(30,996,169)
6,014,305
6,653,583
6,278,470
5,942,353
21,370,476
42,114,893
36,702,197
35,390,317
32,569,795
-
8,492,213
7,279,513
6,927,388
7,323,835
7,713,741
5,327,203
4,480,467
4,265,438
4,737,968
5,446,883
1,748,082
1,533,249
1,585,427
1,607,829
1,687,440
317,011
285,304
302,223
285,270
293,592
641,705
455,089
461,957
437,235
428,963
3,803,647
3,940,801
3,714,437
3,515,395
3,173,826
10,230,489
7,387,244
5,362,684
4,693,974
1,925,255
57,346
21,542
2,330
-
-
1,220,627
118,567
477,936
3,211,584
268,644
-
-
-
-
158,654,715
$ 52,265,114 $ 16,919,485 $ (15,642,529) $ (29,140,269) $ 169,967,366
151
CITY OF LA QUINTA
Changes in Net Assets - Business -type Activities
Last Eight Fiscal Years
(accrual basis of accounting)
TABLE 4
Fiscal Year
2005
2006
2007
2008
2009
2010
2011
2012
Expenses:
Golf Course
1,877,291 2
4,523,146
4,520,173
4,761,581
4,440,546
4,169,768
4,202,274
4,085,282
Total business -type activities expens
1,877,291
4,523,146
4,520,173
4,761,581
4,440,546
4,169,768
4,202,274
4,085,282
Program revenues:
Charges for services:
Golf Course
1,091,836 2
3,120,728
3,540,748
3,814,233
3,368,135
3,584,996
3,756,615
3,871,898
Capital grants and contributions
-
-
-
352,687
-
-
-
-
Total business -type activities
program revenues
1,091,836
3,120,728
3,540,748
4,166,920
3,368,135
3,584,996
3,756,615
3,871,898
Net revenues (expenses)
(785,455)
(1,402,418)
(979,425)
(594,661)
(1,072,411)
(584,772)
(445,659)
(213,384)
General revenues and other changes in net
assets:
Investment income
553
1,817
4,310
3,074
1,252
2,125
1,075
Gain (loss) on sale of capital asse
-
-
(47,721)
-
-
-
-
Transfers
-
164,190
874,645
Capital contributions
41,459,643
973,013
979,425
-
-
-
-
Total business -type activities
41,459,643
1,137,756
1,855,887
(43,411)
3,074
1,252
2,125
1,075
Changes in net assets - business -type 40,674,188 (264 662) 876,462 638,072 1,069,337 583,520 443,534 212,309
activities
The City of La Quinta implemented the business type activities in FY
200412005.
The transfer was for land & golf course
improvements transferred to the Enterprise Fund.
2 This was the first full year of operations for the Golf Course
Source: City of La Quinta
152
THIS PAGE INTENTIONALLY LEFT BLANK
153
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
2007
General fund:
Nonspendable:
Prepaid costs
$ 17,515
$ 292,816
$ 507,931
$
503,642
$ 11,774
Land held for resale
-
-
-
-
-
Notes and loans
-
-
-
-
-
Advances to other funds
21,081,322
28,671,083
31,904,659
22,700,961
27,597,329
Deposits
1,073
246,858
5,903
Restricted for:
Debt service
-
-
-
-
-
Committed:
Emergency reserve
10,523,200
11,915,000
15,067,577
16,905,386
18,722,524
Post retirement health benefits
-
-
Capital Projects
-
-
589,875
10,877,058
482,718
Educational purposes
-
-
1,000,000
750,000
500,000
Library
-
-
11,981
-
-
Economic development
-
-
467,072
4,967,072
2,327,430
Assigned:
Continuing appropriations
1,069,667
1,319,787
2,257,200
Unassigned:
16,061,573
13,579,479
13,308,205
18,239,315
32,741,545
Total general fund
$ 47,684,683
$ 54,705,236
$ 63,926,967
$
76,269,124
$ 84,640,520
All other governmental funds:
Nonspendable:
Prepaid costs
$ -
$ -
$ -
$
7,987
$ 7,977
Land held for resale
-
-
-
-
-
Notes and loans
2,117,586
2,123,425
2,117,873
2,112,597
2,081,645
Advances to other funds
3,811,874
5,336,158
7,061,027
5,365,097
4,823,543
Deposits
185,000
-
1,110
-
-
Restricted:
Planning and development projects
7,903,406
7,518,862
16,144,465
26,172,191
15,297,481
Public safety
40,208
8,413
154,115
143,846
153,818
Community services
996,814
1,359,723
2,889,245
9,696,885
12,214,375
Public works
374,700
409,534
256,881
462,171
104,878
Capital Projects
50,673,421
124,658,452
99,186,105
92,112,917
66,225,066
Debt service
2,273,588
4,093,123
4,605,101
10,288,494
24,309,220
Assigned:
Continuing appropriations
Unassigned:
(10,403,485)
(20,244,236)
(18,801,305)
(7,133,230)
(7,854,868)
Total all other governmental funds
$ 57,973,112
$125,263,454
$113,614,617
$ 139,228,955
$117,363,135
The increase was primarily the result
of the issuance
of the 2004 Financing Authority bonds.
In Fiscal Year 2009-2010, the City implemented GASB 54 which
changed the reporting requirements for fund balances
in the financial
statements. This table has been updated to reflect the
impact of
GASB 54 not only for Fiscal Year 2009-10 but for all
prior years.
The increase was primarily the result
of the issuance
of the 2011 Financing Authority bonds.
Source: City of La Quinta
154
TABLE 5
2008
2009
2010
2011
2012
$ 10,601
$ 12,424
$ 9,030
$ 23,260
$ 27,481
-
-
-
8,320,000
8,320,000
45,264,966
46,137,692
57,897,671
15,373,104
15,417,929
4,825
9,830
9,830
9,967
118,516
-
-
-
169,631
173,426
19,651,824
18,201,948
17,774,648
18,018,595
17,516,295
1,258,059
1,258,059
1,523,401
2,100,000
2,144,085
-
-
-
250,000
-
-
-
-
1,911,131
-
-
-
-
2,835,297
3,485,747
1,555,176
1,768,494
1,657,694
20,423,375
22,335,655
13,525,704
48,140,444
47,121,339
$ 92,452,019
$ 92,327,381
$ 92,030,118
$ 93,081,554
$ 91,876,081
$ 5,353 $ 19,197 $ 7,740 $ 10,563 $ -
2,076,063 2,067,028 2,088,709 2,081,614 2,065,611
4,402,213 4,321,119 4,293,166 4,569,188 -
- 4,540 6,400 6,000 -
21,906,749 25,807,752 31,032,124 34,018,930 2,724,240
198,843 245,468 48,852 96,364 245,187
11,406,628 11,387,631 11,675,417 10,248,314 11,162,057
309,566 7,539,181 448,731 396,355 145,823
69,626,275 50,556,856 53,123,856 58,111,106 3 4,089,156
5,094,635 5,490,098 3,890 4,001,426 2,534
2,000 - - -
(19,653,179) (19,339,823) (33,626,907) (13,250,398) (5,988,442)
$ 95,373,146 $ 88,101,047 $ 69,101,978 $ 100,289,462 $ 14,446,166
155
CITY OF LA QUINTA
Changes
in Fund Balances of Governmental
Funds
Last Ten Fiscal
Years
(modified
accrual basis
of accounting)
Fiscal Year
2003
2004
2005
2006
2007
Revenues:
Taxes
$ 50,326,811
$ 58,301,082
$ 68,175,347
$ 89,704,947
$ 100,103,324
Assessments
780,259
816,045
825,292
818,526
877,191
Licenses and permits
1,982,127
3,096,145
3,226,167
5,145,430
2,788,882
Intergovernmental
7,194,521
11,858,627
10,242,876
18,585,468
14,803,971
Charges for services
2,302,759
2,619,578
3,402,602
3,367,989
1,821,794
Use of money and property
4,463,219
4,854,728
9,798,356
12,671,662
14,804,348
Contributions
-
-
-
-
-
Developer participation
3,021,245
5,718,073
6,091,156
12,473,440
5,310,440
Miscellaneous
483,777
1,359,539
528,903
637,054
412,353
Total revenues
70,554,718
88,623,817
102,290,699
143,404,516
140,922,303
Expenditures
Current:
General government
3,344,407
4,099,376
3,970,921
4,644,954
6,150,699
Public safety
8,344,428
9,672,708
12,364,583
13,029,187
15,685,493
Planning and development
7,804,294
7,480,421
5,719,373
5,847,563
28,994,177
Community services
993,964
1,025,397
1,104,509
1,248,308
4,027,302
Public works
3,685,050
4,536,589
6,206,769
6,987,014
6,755,507
Capital projects
16,057,578
43,331,919
40,012,387
25,445,550
36,420,417
Debt service:
Principal retirement
2,931,952
3,610,538
3,793,660
4,777,748
5,647,940
Interest and fiscal charges
9,469,314
13,961,721
14,355,577
15,554,612
15,059,977
Payment to bond escrow
-
1,591,107
-
-
-
Payments under pass -through obligations
17,561,994
21,448,147
25,756,321
35,958,291
36,498,575
Total expenditures
70,192,981
110,757,923
113,284,100
113,493,227
155,240,087
Excess (deficiency) of
revenues over (under)
expenditures
361,737
(22,134,106)
(10,993,401)
29,911,289
(14,317,784)
Other financing sources (uses):
Issuance of tax allocation bonds
-
26,400,000
-
-
-
Issuance of revenue bonds
-
90,000,000
-
-
-
Payment to bond escrow
-
(19,955,000)
-
-
-
Transfers in
23,887,256
154,613,662
49,248,081
35,828,335
60,954,576
Transfers out
(23,887,256)
(154,613,662)
(49,248,081)
(35,992,525)
(60,954,576)
Other debts issued
-
-
-
-
-
Capital leases
-
-
-
-
-
Proceeds from sale of capital assets
-
-
8,566,295
8,209,396
124,097
Total other financing
sources (uses)
-
96,445,000
8,566,295
8,045,206
124,097
Extraordinary gain/loss on dissolution
of redevelopment agency - - - - Net change in fund balances $ 361,737 $ 74,310,894 $ (2,427,106) $ 37,956,495 $ (14,193,687)
Debt service as a percentage of
noncapital expenditures 43.5% 57.9% 62.0% 65.5% 61.0%
Source: City of La Quinta
156
TABLE 6
2008 2009 2010 2011 2012
$ 105,870,933 $ 99,816,072 $ 93,831,918 $ 88,498,457 $ 53,632,023
909,229
927,816
966,639
956,048
950,292
2,107,035
871,167
472,409
547,071
482,831
15,382,135
18,679,355
19,473,076
19,005,643
15,875,582
1,334,060
673,779
484,043
501,418
635,111
12,874,926
7,043,646
5,338,679
4,670,732
1,914,518
37,643,190
240,591
395,823
327,751
303,773
6,537,991
2,243,785
273,739
945,805
903,144
629,471
720,185
608,342
319,763
276,327
183,288,970
131,216,396
121,844,668
115,772,688
74,973,601
7,367,144
7,230,436
30,220,882
10,885,519
4,881,922
17,181,775
18,946,866
20,116,936
19,826,372
19,669,517
15,374,160
7,261,835
6,028,492
8,460,420
4,314,646
5,336,757
4,698,985
4,204,626
4,147,758
4,086,686
6,563,494
6,324,055
6,862,887
4,808,060
6,192,733
82,883,317
32,363,859
14,514,910
21,287,775
13,335,989
5,949,311
6,319,580
6,616,412
7,011,261
7,066,726
15,424,708
15,348,598
15,357,968
15,037,919
6,701,079
42,989,023
42,426,670
38,710,894
35,607,089
16,755,441
199,069,689
140,920,884
142,634,007
127,072,173
83,004,739
(15,780,719) (9,704,488) (20,789,339) (11,299,485) (8,031,138)
88,604,682
(87,342,608)
182,094
158,061
40,502,929
(40,527,930)
2,332,752
30,386,372
(28,893,365)
6,000,000
28,850,000
61,657,034
(61,652,479)
8,683,850
12,554,752
(12,580,120)
875,275
1,602,229 2,307,751 1,493,007 43,538,405 849,907
- - - - (79,058,255)
$ (14,178,490) $ (7,396,737) $ (19,296,332) $ 32,238,920 $ (86,239,486)
47.1 % 59.0% 47.6% 53.0%
43.8%
157
CITY OF LA QUINTA
TABLE 7
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
Entire City (including Redevelopment Agency)
Fiscal Year Taxable
Ended
June 30 Secured
Less: Assessed Direct
Unsecured Exemptions Value Rate
2003
$ 3,789,678,041 $
32,607,713 $
(54,726,303) $
3,767,559,451
2004
5,412,382,710
40,940,877
(95,420,075)
5,357,903,512
2005
6,289,493,552
44,014,548
(113,037,003)
6,220,471,097
2006
7,856,383,375
72,554,357
(115,071,146)
7,813,866,586
2007
9,986,151,525
88,740,840
(99,245,721)
9,975,646,644
2008
11,854,669,637
101,433,002
(89,688,505)
11,866,414,134
2009
12,410,626,893
113,185,065
(107,777,195)
12,416,034,763
2010
11,742,665,902
121,272,880
(110,752,890)
11,753,185,892
2011
10,913,083,169
118,972,704
(161,265,140)
10,870,790,733
2012
10,400,897,792
107,421,771
(176,887,605)
10,331,431,958
NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited
property taxes to a total maximum rate of 1 % based upon the assessed value of the
property being taxed. Each year, the assessed value of property may be increased
by an "inflation factor" (limited to a maximum increase of 2%). With few
exceptions, property is only re -assessed at the time that it is sold to a new owner.
At that point, the new assessed value is reassessed at the purchase price of the
property sold. The assessed valuation data shown above represents the only data
currently available with respect to the actual market value of taxable property and
is subject to the limitations described above.
Source: County of Riverside Auditor -Controller
0.83181
0.83002
0.80909
0.77208
0.73007
0.68950
0.67747
0.66997
0.67058
0.67169
158
Fiscal Year
Ended
June 30
CITY OF LA QUINTA TABLE 8
Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency
Last Seven Fiscal Years
(in dollars)
Redevelopment Agency Project Area 1
Taxable
Less: Assessed Base Taxable
Secured Unsecured Exemptions Value Year Increment
2006 $ 3,962,433,928 $ 29,248,534 $ (35,653,495) $ 3,956,028,967 $ 199,398,233 $ 3,756,630,734
2007
4,789,836,901
34,084,343
(36,081,051)
4,787,840,193
199,398,233
4,588,441,960
2008
5,223,508,114
34,250,061
(36,913,004)
5,220,845,171
199,398,233
5,021,446,938
2009
5,259,271,091
31,678,492
(36,844,457)
5,254,105,126
199,398,233
5,054,706,893
2010
4,925,639,242
36,169,030
(36,077,902)
4,925,730,370
199,398,233
4,726,332,137
2011
4,527,126,186
35,335,685
(35,822,516)
4,526,639,355
199,398,233
4,327,241,122
2012
4,261,084,382
31,435,346
(35,246,900)
4,257,272,828
199,398,233
4,057,874,595
Redevelopment Agency
Project Area 2
Fiscal Year
Taxable
Ended
Less:
Assessed
Base
Taxable
June 30
Secured
Unsecured
Exemptions
Value
Year
Increment
2006 $ 2,132,426,502 $ 32,999,788 $ (54,125,422) $ 2,111,300,868 $ 95,182,755 $ 2,016,118,113
2007
2,434,082,787
42,914,862
(53,144,959)
2,423,852,690
95,182,755
2,328,669,935
2008
2,764,306,278
50,616,017
(40,774,044)
2,774,148,251
95,182,755
2,678,965,496
2009
2,843,981,136
62,180,440
(57,076,727)
2,849,084,849
95,182,755
2,753,902,094
2010
2,641,339,455
66,270,232
(60,340,787)
2,647,268,900
95,182,755
2,552,086,145
2011
2,522,266,207
60,448,173
(110,797,044)
2,471,917,336
95,182,755
2,376,734,581
2012
2,467,196,690
59,615,560
(127,142,123)
2,399,670,127
95,182,755
2,304,487,372
Source: County of Riverside Auditor -Controller
Note: The information was first presented in Fiscal Year 2006.
159
CITY OF LA QUINTA
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Seven Fiscal Years
City
Redevelopment
Non
-Project Area
Project Area 1
20061
20071
20081
20091
20101
2011 1
20121
2006 3
2007 3
2008 4
20094
2010 4
2011 4
Direct Rates:
City of La Quinta
0.0760
0.0760
0.0760
0.0506
0.0506
0.0734
0.0760
0.0000
0.0000
0.0000
0.0152
0.0036
0.0049
Redevelopment agency Project Area 1
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
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
County of Riverside
0.1960
0.1960
0.1960
0.2586
0.2586
0.2318
0.1957
0.2639
0.2619
0.2619
0.2325
0.2501
0.2471
County Free Library
0.0250
0.0250
0.0250
0.0284
0.0284
0.0280
0.0252
0.0276
0.0276
0.0276
0.0277
0.0276
0.0282
County Structure Fire Protection
0.0540
0.0540
0.0540
0.0610
0.0610
0.0602
0.0544
0.0595
0.0595
0.0595
0.0595
0.0595
0.0607
Coachella Valley (CV) Unified School
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.4322
0.0170
0.0150
0.0020
0.0149
0.0167
0.0182
Desert Sands Unified School
0.4320
0.4320
0.4320
0.3765
0.3765
0.3716
0.0000
0.0160
0.0140
0.0140
0.0695
0.0568
0.0637
Desert Community College
0.0700
0.0700
0.0700
0.0782
0.0782
0.0772
0.0698
0.0030
0.0030
0.0720
0.0177
0.0152
0.0166
Riverside County Office of Education
0.0380
0.0380
0.0380
0.0426
0.0426
0.0420
0.0380
0.0030
0.0030
0.0180
0.0093
0.0027
0.0038
Riverside County Regional Park & Open Space
0.0040
0.0040
0.0040
0.0000
0.0000
0.0000
0.0040
0.0000
0.0000
0.0030
0.0000
0.0000
0.0000
CV Public Cemetery
0.0032
0.0032
0.0032
0.0035
0.0035
0.0035
0.0032
0.0000
0.0000
0.0000
0.0008
0.0002
0.0003
CV Mosquito
0.0127
0.0127
0.0127
0.0142
0.0142
0.0141
0.0127
0.0120
0.0120
0.0120
0.0112
0.0111
0.0112
Desert Recreation District
0.0192
0.0192
0.0192
0.0215
0.0215
0.0213
0.0192
0.0010
0.0020
0.0010
0.0044
0.0014
0.0019
CV Water District
0.0250
0.0250
0.0250
0.0284
0.0284
0.0281
0.0254
0.0130
0.0130
0.0010
0.0127
0.0120
0.0124
CV Resource Conservation
0.0003
0.0003
0.0003
0.0004
0.0004
0.0004
0.0003
0.0000
0.0000
0.0130
0.0001
0.0000
0.0000
CVWD District 1 Debt Service
0.0118
0.0118
0.0118
0.0000
0.0000
0.0131
0.0118
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
0.0010
0.0010
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
Tax Rate Area
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
Overlapping Rates 5:
City of La Quinta
County of Riverside
Riverside County Office of Education
Riverside County Pension Obligation
Desert Sands Unified
0.0767
0.0761
0.0799
0.0799
0.0811
0.1004
0.0757
0.0767
0.0761
0.0756
0.0799
0.0811
0.1004
Coachella Valley Unified School District
Coachella Valley Water District
0.0442
0.0332
0.0462
0.0464
0.0660
0.0860
0.0862
0.0199
0.0208
0.0484
0.0464
0.0660
0.0860
Coachella Valley Recreation & Park District
Desert Comm College District
0.0199
0.0199
0.0199
0.0199
0.0200
0.0200
0.0079
0.0208
0.0199
0.0199
0.0199
0.0200
0.0200
Total Overlapping Rate
0.1409
0.1293
0.1461
0.1462
0.1671
0.2063
0.1698
0.1175
0.1169
0.1440
0.1462
0.1671
0.2063
Total Direct and Overlapping Rate 1.1401 1.1285 1.1453 1.1462 1.1671 1.2063 1.1697 1.1175 1.1169 1.1440 1.1463 1.1671 1.2063
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This 1.00 % isshared by all
taxing agencies for which the subject property resides within.
Source: County of Riverside Auditor Controller's Office
t 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 all non -RDA TRA's provided by the County
of Riverside and do not include ERAF deductions and
overlapping rates provided by California Municipal Statistics
9 Direct rate taken from an analysis by the City of La Quinta
Finance Department staff of all TRA's in the Project area and do
not include State ERAF deductions and overlapping rates
provided by California Municipal Statistics
4 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
5 Overlapping rates are based upon a single tax rate area only.
Note: The information was first presented in Fiscal Year 2006.
160
TABLE 9
Redevelopment
Project Area 2
2012 4 2006 3 2007 3 2008 4 20094 2010 4 2011 4 2012 4
0.0524
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
0.0000
0.0000
0.2860
0.2920
0.2910
0.3193
0.3174
0.3059
0.0000
0.2683
0.2617
0.2617
0.2617
0.2516
0.2537
0.2511
0.2553
0.0294
0.0280
0.0280
0.0280
0.0280
0.0280
0.0286
0.0280
0.0633
0.0603
0.0603
0.0603
0.0603
0.0603
0.0616
0.0602
0.0000
0.0000
0.0000
0.0020
0.0000
0.0000
0.0000
0.0000
0.3905
0.2000
0.1980
0.1970
0.1860
0.1859
0.1930
0.3716
0.0812
0.0420
0.0410
0.0410
0.0386
0.0386
0.0401
0.0772
0.0442
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
0.0037
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0035
0.0148
0.0150
0.0140
0.0140
0.0141
0.0141
0.0141
0.0140
0.0223
0.0060
0.0060
0.0060
0.0053
0.0053
0.0059
0.0212
0.0295
0.0770
0.0760
0.0760
0.0757
0.0757
0.0740
0.0281
0.0004
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0004
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0005
0.0131
0.0000
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
1.0000
020-089 020-144 020-144 020-144 020-144 020-144 020-144 020-144
0.0757
0.0767
0.0761
0.0756
0.0799
0.0811
0.1004
0.0757
0.0862
0.0442
0.0332
0.0484
0.0464
0.0660
0.0860
0.0862
0.0079
0.0199
0.0199
0.0199
0.0199
0.0200
0.0200
0.0079
0.1698 0.1409 0.1293 0.1440 0.1462 0.1671 0.2063 0.1698
1.1698 1.1409 1.1293 1.1440 1.1462 1.1671 1.2063 1.1698
161
CITY OF LA QUINTA
TABLE 10
Principal Property Taxpayers
Current Year and Nine Years Ago
(in dollars)
2012
2003
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
KSL Desert Resort, Inc
$ 140,972,125
1
1.30%
$ 223,561,771
1
4.85%
TD Desert Development
97,885,896
2
0.90%
23,396,068
3
0.51%
MSR Resort Golf Course
55,063,175
3
0.51 %
East of Madison LLC
43,291,518
4
0.40%
-
Inland American La Quinta Pavilion
42,548,545
5
0.39%
-
Coral Option I LLC
42,113,733
6
0.39%
-
WRM La Quinta
37,973,210
7
0.00%
-
Griffin Ranch
35,404,218
8
0.33%
13,279,487
10
0.29%
Walmart Stores
29,352,870
9
-
TD Desert Development LP
25,918,559
10
0.24%
16,452,860
5
0.36%
Quarry at La Quinta Inc
-
20,310,518
4
0.44%
Toll California V
33,241,643
2
0.72%
Monticello CCC
15,050,496
6
0.33%
Spanos Corporation
-
-
15,048,480
7
0.33%
M&H Realty Partners II
14,824,567
8
0.32%
SRHI
-
-
14,095,924
9
0.31%
$ 550,523,849
4.46%
$ 389,261,814
8.46%
Source: HdL Coren & Cone
162
CITY OF LA QUINTA
Property Tax Levies and Collections
Last Seven Fiscal Years
( in dollars)
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in
Year Ended for the Percent Subsequent
June 30 Fiscal Year Amount of Levy Years
TABLE 11
Total Collections to Date
Percent
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 73,462,430 38,125,919 51.90% - 38,125,919 51.90%
NOTE:
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also
includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies.
Effective February 1, 2012, AB 1 x26 dissolved the Redevelopment Agencies throughout the State of California
which resulted in the reduction of amounts collected during Fiscal Year 2011-12.
Note: The information was first presented in Fiscal Year 2006.
Source: County of Riverside Auditor Controller's Office
163
Governmental Activities
Reimbursement Agreement
Capital lease
USDA Loan
Provident Savings Loan
Due to Coachella Valley Unified School District
Due to County of Riverside
Developer Agreement
Tax Allocation Bonds Project Area 1
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds '
2011 Local Agency Revenue Bonds '
City Hall Lease Revenue Bonds
Unamortized Discount and Issuance Costs
Total Governmental
Business -type Activities
Capital Leases
Total Business -type activities
Total Primary Government
Population - State Department of Finance January 1
Number of Households
Median Household Income
Percentage of Personal Income
Debt Per Capita
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(in dollars)
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
2003 2004 2005 2006
$ 478,311 $
428,311 $
378,311 $
328,311
7,365,254
6,653,377
5,927,263
5,186,627
2,150,000
2,050,000
1,950,000
1,850,000
684,688
1,010,688
898,141
776,030
134,776,344
142,507,628
140,263,659
141,785,000
10,801,820
6,325,000
6,230,000
6,130,000
87,924,343
87,947,058
89,265,000
7,190,000 6,890,000 6,575,000 6,245,000
(877,230)
163,446,417 253,789,347 250,169,432 250,688,738
801,417 1,090,602
- - 801,417 1,090,602
$ 163,446,417 $ 253,789,347 $ 250,970,849 $ 251,779,340
30,452
32,522
36,145
38,340
14,938
15,942
17,549
18,762
(2)
(2) $
(2) $
65,906
(2)
(2)
-200.00%
20.36%
$ 5,367 $
7,804 $
6,943 $
6,567
'Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1 The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2 low & moderate
income tax increment.
2 Information not collected prior to Fiscal Year 2006
164
TABLE 12
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
2007 2008 2009 2010 2011 2012
$ 278,311 $
228,311 $
178,311 $
128,311 $
- $
-
-
-
149,169
114,583
78,253
40,090
-
751,754
741,171
729,480
716,468
-
-
1,556,283
1,530,958
1,503,433
1,473,515
4,431,178
3,675,731
2,874,653
2,072,965
1,255,243
-
1,750,000
1,600,000
1,400,000
1,200,000
1,000,000
643,539
511,048
343,814
174,584
-
-
139,145,000
136,350,000
133,390,000
130,255,000
126,925,000
123,385,000
6,025,000
5,915,000
5,800,000
5,680,000
11,555,000
11,425,000
87,745,000
86,175,000
84,560,000
82,890,000
81,150,000
79,345,000
-
-
-
-
28,850,000
28,850,000
5,900,000
5,540,000
5,160,000
4,760,000
4,340,000
3,895,000
(877,230)
(841,087)
(804,944)
(768,801)
(1,115,799)
(1,075,595)
245,040,798
239,154,003
235,359,040
228,778,771
256,270,610
248,054,478
825,848 681,048 285,217 54,543 286,097 169,084
825,848 681,048 285,217 54,543 286,097 169,084
$ 245,866,646 $
239,835,051 $
235,644,257 $
228,833,314
$ 256,556,707 $
248,223,562
41,092
42,958
43,778
44,421
37,836
38,075
20,176
21,058
21,355
23,489
23,528
23,528
$ 67,754 $
74,683 $
76,227 $
90,124
$ 104,410 $
104,045
17.99% 15.25% 14.48% 10.81% 10.44% 10.14%
$ 5,983 $ 5,583 $ 5,383 $ 5,151 $ 6,781 $ 6,519
165
CITY OF LA QUINTA TABLE 13
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Dollars)
Outstanding General Bonded Debt
Fiscal Year City Hall Lease Tax Percent of Per
Ended Lease Local Agency Allocation Assessed Median
June 30 Obligation Revenue Bonds ' Bonds Total Value' Household Income
2003
$ 7,190,000
$ -
$145,578,164
$152,768,164
4.05%
2
2004
6,890,000
87,924,343
148,832,628
243,646,971
4.55%
2
2005
6,575,000
87,947,058
146,493,659
241,015,717
3.87%
2
2006
6,245,000
89,265,000
147,915,000
243,425,000
3.12%
3,694
2007
5,900,000
87,745,000
145,170,000
238,815,000
2.39%
3,525
2008
5,540,000
86,175,000
142,265,000
233,980,000
1.97%
3,133
2009
5,160,000
84,560,000
139,190,000
228,910,000
1.84%
3,003
2010
4,760,000
82,890,000
135,935,000
223,585,000
1.90%
2,481
2011
4,340,000
110,000,000
138,480,000
252,820,000
2.33%
2,421
2012
3,895,000
108,195,000
134,810,000
246,900,000
2.39%
2,373
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
2 Information not collected prior to Fiscal Year 2006
Source: City of La Quinta
CITY OF LA QUINTA
Direct and Overlapping Debt
June 30, 2012
City Assessed Valuation
Redevelopment Agency Incremental Valuation
Total Assessed Valuation
Source: Riverside County Auditor Controller
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District
Coachella Valley Unified School District
Desert Sands Unified School District (DSUSD)
DSUSD Community Facilities District No. 1
City of La Quinta 1915 Act Bonds
Coachella Valley Water District Assessment District No. 68
Total overlapping debt repaid with property taxes
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
Riverside County Pension Obligations
Riverside County Board of Education COP
Coachella Valley Unified School District COP
DSUSD COP
Coachella Valley County Water District I.D. No. 71 COP
Coachella Valley Recreation and Park District COP
Total overlapping other debt
Total overlapping debt
City direct debt
Total direct and overlapping debt
Percentage
Applicable'
$ 3,969,069,991
6,362,361,967
$ 10,331,431,958
Outstanding
Debt 6/30/12
TABLE 14
Estimated
Share of
Overlapping
Deht
7.937%
$ 320,591,264
$ 25,445,329
34.800%
109,948,827
38,262,192
7.565%
243,740,852
18,438,995
100.000%
1,525,000
1,525,000
100.000%
740,000
740,000
86.247%
1,895,000
1,634,381
678,440,943
86,045,897
1.714%
1.714%
1.714%
34.800%
7.565%
11.522%
13.207%
$ 655,042,180
357,540,000
5,055,000
48,850,000
57,905,000
1,410,000
2,280,000
1,128,082,180
1,806,523,123
Notes:
' For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental 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
$ 11,227,423
6,128,236
86,643
16,999,800
4,380,513
162,460
301,120
39,286,195
125,332,092
248,223,562
$ 373,555,654
167
CITY OF LA QUINTA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2003 2004 2005 2006 2007
Assessed valuation $ 3,767,559,451 $ 5,357,903,512 $ 6,220,471,097 $ 7,813,866,586 $ 9,975,646,644
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 565,133,918 803,685,527 933,070,665 1,172,079,988 1,496,346,997
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
$ 565,133,918 $ 803,685,527 $ 933,070,665 $ 1,172,079,988 $ 1,496,346,997
as a percentage of debt limit 0.0% 0.0%
Section 43605 of the Government Code of the State of California limits the
amount of indebtedness for public improvements to 15% of the assessed
valuation of all real and personal property of the City.
The City of La 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
0.0% 0.0% 0.0%
168
TABLE 15
2008
2009 2010
2011
2012
$ 11,866,414,134
$ 12,416,034,763 $ 11,753,185,892
$ 10,870,790,733
$ 10,331,431,958
15%
15% 15%
15%
15%
1,779,962,120
1,862,405,214 1,762,977,884
1,630,618,610
1,549,714,794
$ 1,779,962,120 $ 1,862,405,214 $ 1,762,977,884 $ 1,630,618,610 $ 1,549,714,794
0.0% 0.0% 0.0% 0.0% 0.0%
169
CITY OF LA QUINTA
Pledged -Revenue Coverage
Last Ten Fiscal Years
(In Dollars)
Tax Allocation Bonds - Project Area 1
Fiscal Year
mesa
Tax
Less: Other Net Tax
Debt Service
dineU
Increment
Debt Payments Increment
Principal
Interest
Coverage'
2003
$ 21,086,099
$ 12,121,344 $ 8,964,755
$ 1,260,000 $
6,044,172
1.23
2004
23,966,954
14,581,305 9,385,649
1,890.000
7,235,893
1.03
2005
27,093,693
16,185,190 10,908,503
2,395,000
7,929,969
1.06
2006
36,506,201
20,638,731 15,867,470
2,500,000
7,805,905
1.54
2007
42,029,503
20,820,149 21,209,354
2,640,000
7,658,900
2.06
2008
43,476,312
25,383,713 18,092,599
2,795,000
7,500,553
1.76
2009
40,519,380
25,046,356 15,473,024
2,960,000
7,330,188
1.50
2010
38,517,789
47,006,738 4 (8,488,949)
3,135,000
7,144,062
(0.83)
2011
35,192,471
26,129,448 ° 9,063,023
3,330,000
6,941,435
0.88
2012
1 16,505,087
9,984,779 6,520,308
3,113,575
6,675,387
0.67
Fiscal Year
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
Increment
Debt Payments
Increment'
Principal
Interest
Coverage'
2003
$ 9,916,962
$ 9,212,788
$ 704,174
$ 90,000 $
330,748
1.67
2004
12,126,671
11,076,008
1,050,663
90,000
327,080
2.52
2005
14,036,962
12,894,804
1,142,158
95,000
323,264
2.73
2006
19,849,893
17,325,411
2,524,482
100,000
319,168
6.02
2007
20,777,158
18,553,875
2,223,283
105,000
314,785
5.30
2008
23,087,750
20,929,512
2,158,238
110,000
310,135
5.14
2009
22,783,714
21,042,814
1,740,900
115,000
305,184
4.14
2010
20,763,180
19,373,073
1,390,107
120,000
299,550
3.31
2011
19,349,036
17,591,754
1,757,282
125,000
293,272
4.20
2012
9,365,929
8,465,044
900,885
130,000
633,843
1.18
1994 Tax Allocation Bonds -18.5 % Housing Portion
Fiscal Year
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
Increment'
Debt Payments
Increment
Principal
Interest
Coverage
2003
$
7,750,765
$ -
$ 7,750,765
$
233,100 $
251,758
15.99
2004
9,023,407
-
9,023,407
245,125
235,776
18.76
2005
10,282,664
-
10,282,664
264,550
218,696
21.28
2006
14,089,024
-
14,089,024
279,350
201,225
29.32
2007
15,701,664
-
15,701,664
299,700
180,089
32.73
2008
16,641,016
-
16,641,016
321,900
157,401
34.72
2009
15,825,773
-
15,825,773
345,025
133,058
33.10
2010
14,820,242
-
14,820,242
370,000
106,960
31.07
2011
13,635,377
-
13,635,377
396,825
78,970
28.66
2012
°
6,464,706
-
6,464,706
426,425
48,922
13.60
2004 Local Agency
Revenue Bonds
Fiscal Year
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
Increment'
Debt Payments
Increment
Principal
Interest
Coverage
2005
$
10,282,664
$ -
$ 10,282,664
$
- $
2,990,049
3.44
2006
14,089,024
-
14,089,024
735,000
4,436,981
2.72
2007
15,701,664
-
15,701,664
1,520,000
4,402,909
2.65
2008
16,641,016
-
16,641,016
1,570,000
4,356,806
2.81
2009
15,825,773
-
15,825,773
1,615,000
4,304,994
2.67
2010
14,820,242
-
14,820,242
1,670,000
4,243,331
2.51
2011
13,635,377
-
13,635,377
1,740,000
4,175,131
2.31
2012
°
6,464,706
-
6,464,706
1,805,000
4,099,719
1.09
2011 Local Agency
Revenue Bonds
Fiscal Year
Ended
Tax
Less: Other
Net Tax
Debt Service
June 30
Increment 3
Debt Payments
Increment
Principal
Interest
Coverage
2012
° $
6,464,706
$ -
$ 6,464,706
$
- $
1,574,531
4.11
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Ended
Lease Less: Other
Net Lease
Debt Service
June 30
Revenue2 Debt Payments
Revenue
Principal
Interest
Coverage
2003 $
679,435 $ -
$ 679,435
$ 285,000 $
394,435
1.00
2004
680,830 -
680,830
300,000
380,830
1.00
2005
681,220 -
681,220
315,000
366,220
1.00
2006
680,575 -
680,575
330,000
350,575
1.00
2007
678,865 -
678,865
345,000
333,865
1.00
2008
675,880 -
675,880
360,000
315,880
1.00
2009
676,450 -
676,450
380,000
296,450
1.00
2010
675,280 -
675,280
400,000
275,280
1.00
2011
672,525 -
672,525
420,000
252,525
1.00
2012
673,521
673,521
445,000
228,521
1.00
Note: Details regarding the city's outstanding debt
can be found in the notes to the financial
statements.
' Tax increment has been reduced by other debt payments, which may or may not be subordinated to Tax Allocation Bonds
' Lease revenues consist of payments from the City General Fund, Civic Center Development Impact Fee Fund and the Redevelopment Agency Capital Projects Fund
' Tax increment revenues from both Project Area 1 and Project Area 2 Low 8 Moderate Income Funds are used to pay the annual debt service payments.
4 The State of California assessed the La Quints Redevelopment Agency a supplemental educational relief augmentation fund payment of $23,582,367 in FY 2009/2010 which was paid
from Project Area 1 tax increment revenues. This payment was funded by a $10 million loan from the General Fund to the Agency, $10 million from the Debt service Fund and $3,582,367
from the RDA Project Area 1 Capital Projects Fund. If this payment would not have been made the coverage ratio would have been 1.47.
' The State of California assessed the La Quinta Redevelopment Agency a supplemental educational relief augmentation fund payment of $4,855,193 in FY 2010/2011 which was paid
from Project Area 1 tax increment revenues.
° The County of Riverside did not remit the 2nd property tax installment in May 2012 which is generally why the tax increment is less than previous years. Debt service payments were paid
from cash on hand in March 1st 2012..
TABLE 16
170
CITY OF LA QUINTA
TABLE 17
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Calendar Calendar Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Calendar
Year Year Year Year
Year
Year
Year
Year
Year
Year
Year
Sources: 2002 2003 2004 2005
2006
2007
2008
2009
2010
2011
2012
City Land (Sq Miles) (3) 34.8 34.8 35.1 35.1
35.10
35.10
35.31
35.31
35.31
35.31
35.16
Population (1) 28715 30452 32522 36145
38,340
41,092
42,958
43,778
44,421
37,836
38,075
Median Household Income (in dollars) (4) (4) (4) (4) (4)
$65,906
$67,754
$74,683
$76,227
$90,124
$104,410
$104,045
Number of Dwelling Units (3) 14,127 14,938 15,942 17,549
18,762
20,176
21,058
21,355
23,489
23,528
23,528
Persons per Household (3) 2.841 2.848 2.848 2.878
2.855
2.846
2.851
2.851
2.865
2.549
2.555
Average Income per person per household (6) (6) (6) (6) (6)
$23,084
$23,807
$26,195
$26,737
$31,457
$40,961
$40,722
Labor Force (2) 12500 13000 13700 14300
14,500
15,300
15,200
14,800
14,600
14,400
15,100
Employment (2) 12100 12500 13200 13900
14,100
14,900
14,600
13,700
13,500
13,300
14,100
Unemployment Rate (2) 3.20% 3.85 % 3.65 % 2.80%
2.76 %
2.61 %
3.95%
7.43%
7.53%
7.64 %
6.62 %
Median age (4) (4) (4) (4) (4)
36
36.4
36.4
36.4
42.2
41.5
42.8
Sources: (1) State of California Department of Finance - January 1 of each year
(2) State of California Economic Development Department website
(3) City of La Quinta Building & Safety and Community Development Departments
(4) Desert Wheeler's Newsletter City Overview through 2009; Hdl-Coren & Cone Companies thereafter - data not available
before
2006
(5) The population number was updated based upon the 2010 United States Census
(6) The information was not collected before 2006
171
CITY OF LA QUINTA TABLE 18
Principal Employers
Current Year and Nine Years Ago
Employer
Activity
La Quinta Resort & Club
Hotel & Golf Resort
Desert Sands Unified School Distict
Government
Wal-Mart Super Center
Retailer
Costco
Retailer
Home Depot
Retailer
Rancho La Quinta
Golf Resort
Lowe's Home Improvement
Retailer
Hideaway
Golf Resort
Tradition Golf Club
Grocery Store
City of La Quinta
Government
Imperial Irrigation District
Utility Company
Stater Brothers
Grocery Store
Vons
Grocery Store
Total employment listed
Total City Employment - July 1
2011-2012 2002-2003
Percent of
Number of
Total
Number of
Rank
Employees
Employment
Employees
Rank
1
1,211
9.11%
1,500
1
2
968
7.28%
550
3
3
367
2.76%
250
4
4
234
1.76%
-
-
5
165
1.24%
180
6
6
152
1.14%
200
5
7
145
1.09%
150
7
8
122
0.92%
1,100
2
9
101
0.76%
97
12
10
89
0.67%
76
13
-
-
110
9
-
-
126
8
-
-
103
10
3,554
26.72%
4,442
13,300
12,100
"Total Employment" as used above represents the total employment of all employers located
within City limits with over 100 employees
Source: City of La Quinta
172
CITY OF LA QUINTA
TABLE 19
Full-time City Employees
by Function
Last Ten Fiscal Years
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending
Ending
Ending
Ending
Ending
Ending
Ending
June 30
June 30
June 30
June 30
June 30
June 30
June 30
June 30
June 30
June 30
Function
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Administration
8.00
8.00
8.00
9.00
10.00
12.00
12.00
13.00
14.00
12.00
City Clerk
5.00
5.00
5.00
5.00
5.00
6.00
6.00
6.00
6.00
5.00
Finance
7.00
8.00
8.00
9.00
9.00
9.00
9.00
9.00
9.00
8.00
Community Services
7.00
7.00
8.00
10.25
10.25
11.25
11.25
10.35
10.35
10.35
Building and Safety
19.00
19.00
21.00
22.00
24.00
25.00
25.00
25.00
24.00
21.00
Planning and Development
9.00
9.00
9.00
12.00
12.00
12.00
12.00
10.00
9.00
8.00
Public Works
21.00
22.00
23.50
26.25
26.25
28.25
29.25
27.25
26.25
24.25
Golf Course
0.50
0.50
0.50
0.50
0.50
0.40
0.40
0.40
Total
76.00
78.00
83.00
94.00
97.00
104.00
105.00
101.00
99.00
89.00
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
173
CITY OF LA QUINTA
Operating Indicators
by Function
Last Seven Fiscal Years
TABLE 20
2006
2007
2008
2009
2010
2011
2012
Finance:
Number of Active Business Licenses
3,208
3,424
3,690
3,523
3,428
3,183
3,310
Number of Animal Licenses Processed
892
1,022
1,272
1,609
1,768
1,619
1,674
Number of Accounts Payable Checks Processed
4,696
4,722
4,840
4,819
4,393
4,530
3,766
Number of investment purchases
39
73
64
36
32
20
27
Par value of investments
$327,417,000
$392,729,000 $424,500,000 $229,969,000
$267,213,000 $186,480,000 $143,685,000
Number of cleared checks
5,081
4,837
5,501
5,269
4,984
4,912
5,103
Number of outgoing bank wires
202
158
136
91
75
87
63
Public Works:
Encroachment permits issued
304
218
110
132
78
104
65
Request for services
618
419
1152
1931
1306
746
534
Building & Safety:
Permits:
Single family Detached
1,044
526
297
129
56
85
39
Single family Attached
227
38
0
6
12
0
11
Residential Pool
866
612
331
207
152
148
127
Wall/Fence
1,502
963
583
299
178
218
149
Other
1,607
1,404
1,121
908
790
1,033
916
Total Permits
5,246
3,543
2,332
1,549
1,188
1,484
1,242
Code Compliance:
Animal Control Incidents Handled
1,901
687
2,920
3,630
3,984
4,392
4,246
Vehicle abatements
909
296
351
346
214
263
139
Garage Sale Permits
1,190
1,444
1,519
1,535
1,663
1,805
1,430
Weed abatements
141
76
117
97
125
143
106
Nuisance abatements
1,611
2,032
2,142
3,130
2,340
2,252
2,433
Community Services:
Library activities:
Library Volume
42,050
44,981
66,124
81,124
89,060
92,484
109,000
Library books checked out
55,002
99,659
117,738
215,843
259,711
263,064
275,838
Library Cards Issued
5,550
5,325
3,675
3,684
3,547
3,822
4,477
Number of School Children Visiting Library
745
260
841
1,036
772
1,881
962
Library Volunteer Hours
1,891
1,583
1,951
2,342
2,723
4,280
2,720
Senior Center:
Number of visits
14,305
12,955
14,013
15,739
20,326
18,403
16,642
Senior Center Volunteer Hours
3,481
4,192
3,332
2,583
3,131
3,099
2,690
Recreation activities:
Participants:
Leisure Classes
1,373
1,192
990
1,140
1,437
1,512
2,016
Special events
4,668
7,809
8,109
11,053
8,795
8,933
36,305
Adult Sports
3,402
6,827
8,550
10,806
13,364
13,092
5,647
Golf course:
Golf rounds played
38,934
40,548
40,516
39,150
43,779
45,269
46,949
Average $ Green fee
71.12
76.97
81.09
76.13
71.59
70.7
70.4
Planning and Development:
Number of residential units approved
1,063
534
338
100
255
208
285
Commercial square footage approved
533,726
124,821
342,502
390,097
6,200
27,526
61,662
Source: City of La Quinta
Note: Information not collected before 2006
174
CITY OF LA QUINTA
TABLE 21
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Ending
Ending
Ending
Ending Ending
Ending
Ending
Ending
Ending
Ending
June 30
June 30
June 30
June 30 June 30
June 30
June 30
June 30
June 30
June 30
2003
2004
2005
2006 2007
2008
2009
2010
2011
2012
Public works:
Streets (miles)
118.40
118.40
118.40
118.40 122
127
127
127
127
128
Bikepaths (miles)
22
22
22
22 22
22
22
22
22
22
Streetlights 1
1
1
1
73 85
85
261
265
265
269
Traffic signals 2
2
2
2
44 45.25
45.25
49
50
50
51
Traffic signs 2
2
2
2
2,799 2,845
2,895
2,899
2,909
2,919
2,934
Bridges2
2
2
2
12 12
12
12
12
12
12
Parks and recreation:
Parks
9
12
12
12 12
13
13
13
13
13
Park Acreage
40
207
207
207 207
209
209
218
218
218
Undeveloped Park Acreage 2
2
2
2
40 40
40
40
40
40
40
Senior Center
1
1
1
1 1
1
1
1
1
1
Museum
1
1
1
1 1
1
1
1
1
1
Library
1
1
1
1 1
1
1
1
1
1
Golf Course:
Municipal golf courses
-
-
-
1 1
1
1
1
1
1
Source: City of La Quinta
In Fiscal Year ending 2009 street lights at intersections were included for the first time.
In Fiscal Year ending 2006 traffic signals , traffic signs, and undeveloped park acreage were included for the
first time.
175
Company Name Policy Number
Hartford 72BPEEW0254
Lexington 20412656
Lloyds 750020221-L-00
California
Joint Powers
Insurance Authority
California
Joint Powers
Insurance Authority
Alliant PEC0011896301
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2012
Coverage
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
Comprehensive General
Liability
Worker's Compensation
Pollution Liability
TABLE 22
Limits Term Premium
$1,000,000 12/3/11 - 12/3/12 $3,224
64,497,900 7/01/12 - 7/01/13 59,620
20,000,000 2/07/12 - 2/07/13 122,811
$50 Million 7/01/12 - 7/01/13 279,613
Single Limit per Occurrence
10,000,000 7/01/12 - 7/01/13 108,547
10,000,000 7/01/11 - 7/01/14 26,227
176