FY 2008-2009 RDA Financial StatementsLA QUINTA REDEVELOPMENT AGENCY
LA QUINTA, CALIFORNIA
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2009
203 North Brea Blvd
Suite 203
Brea, CA 92821
Lance Soll & Lunghard, LLP
41185 Golden Gate Circle
Suite 103
Murrieta, CA 92562
LA QUINTA REDEVELOPMENT AGENCY
LA QUINTA, CALIFORNIA
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2009
LA QUINTA REDEVELOPMENT AGENCY
JUNE 30, 2009
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS' REPORT
Financial Audit ................................................................................................................................ 1
Compliance Audit ............................................................................................................................ 3
Management’s Discussion and Analysis ........................................................................................... 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Assets ............................................................................................................ 12
Statement of Activities ............................................................................................................... 13
Fund Financial Statements:
Balance Sheet - Governmental Funds ...................................................................................... 14
Reconciliation of the Balance Sheet of Government Funds
to the Statement of Net Assets .................................................................................................. 16
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds ............................................................................................... 18
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ............................................................................................................... 20
Budgetary Comparison Statement – Low/Moderate Income Housing Fund – PA No. 1 .......... 21
Budgetary Comparison Statement – Low/Moderate Income Housing Fund – PA No. 2 .......... 22
Notes to Financial Statements ...................................................................................................... 23
COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Project Area Balance Sheet -
All Governmental Funds ............................................................................................................... 38
Combining Project Area Statement of Revenues,
Expenditures and Changes in Fund Balances -
All Governmental Funds ............................................................................................................... 41
Computation of Low and Moderate Income Housing
Funds Excess/Surplus .................................................................................................................. 44
INDEPENDENT AUDITORS’ REPORT
To the Honorable Chair and Members of the Governing Board
La Quinta Redevelopment Agency, California
We have audited the accompanying financial statements of the governmental activities and each major
fund of the La Quinta Redevelopment Agency, a component unit of the City of La Quinta, California as of
and for the year ended June 30, 2009, which collectively comprise the Agency’s basic financial
statements as listed in the table of contents. These basic financial statements are the responsibility of the
La Quinta Redevelopment Agency’s management. Our responsibility is to express an opinion 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 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 basic financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe 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 and each major fund of the La Quinta
Redevelopment Agency at June 30, 2009, and the respective changes in financial position thereof and
the respective budgetary comparisons for the Low/Moderate Income Housing Fund – PA No. 1 and the
Low/Moderate Income Housing Fund - PA 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 issued by the Comptroller General of the United
States, we have also issued our report dated September 22, 2009, on our consideration of the La Quinta
Redevelopment Agency’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 controls over financial reporting and
compliance and the results of that testing, and not to provide and opinion on the 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 or our audit.
The management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Lance, Soll & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
Brandon W. Burrows, C.P.A
Donald L. Parker, C.P.A
Michael K. Chu, C.P.A
David E. Hale, C.P.A, C.F.P.
A Professional Corporation
Donald G. Slater, C.P.A
Richard K. Kikuchi, C.P.A
Susan F. Matz, C.P.A.
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of La Quinta, California
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Agency’s basic financial statements. The combining project area statements and
computation of low and moderate income housing funds excess/surplus are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
September 22, 2009
2
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
La Quinta Redevelopment Agency, California
We have audited the financial statements of the governmental activities and each major fund of the La
Quinta Redevelopment Agency as of and for the year ended June 30, 2009, which collectively comprise
the Agency’s basic financial statements and have issued our report thereon dated September 22, 2009.
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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the La Quinta Redevelopment Agency’s internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on
the effectiveness of the La Quinta Redevelopment Agency’s internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the La Quinta Redevelopment
Agency’s internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the La Quinta Redevelopment Agency’s ability to initiate, authorize,
record, process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the La Quinta
Redevelopment Agency’s financial statements that is more than inconsequential will not be prevented or
detected by the La Quinta Redevelopment Agency’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the La Quinta Redevelopment Agency’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
Lance, Soll & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
Brandon W. Burrows, C.P.A
Donald L. Parker, C.P.A
Michael K. Chu, C.P.A
David E. Hale, C.P.A, C.F.P.
A Professional Corporation
Donald G. Slater, C.P.A
Richard K. Kikuchi, C.P.A
Susan F. Matz, C.P.A.
To the Honorable Chair and Members of the Governing Board
Redevelopment Agency of the City of La Quinta, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the La Quinta
Redevelopment Agency’s financial statements are free of material misstatements, we performed tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements;
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. Such provisions included those provisions of laws and regulations identified in the
Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller
and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of
California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of
the California Society of Certified Public Accountants. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance.
We noted no instances of other matters that are required to be reported under Government Auditing
Standards issued by the Comptroller General of the United States.
This report is intended solely for the information and use of management, governing board, State
Controller, and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than these specified parties.
September 22, 2009
4
LA QUINTA REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2009
Our discussion and analysis of the La Quinta Redevelopment Agency’s (Agency)
financial performance for the fiscal year ended June 30, 2009, provides a
comparison of current year to prior year ending results based on the government-
wide statements, an analysis on the Agency’s overall financial position and
results of operations to assist users in evaluating the Agency’s financial position,
and a discussion of significant changes that occurred within each fund. In
addition, it describes the activities during the year for capital assets and long-
term debt. We end our discussion and analysis with a description of currently
known facts, decisions and conditions that are expected to have a significant
effect on the financial position or results of operations. Please read it in
conjunction with the Agency’s financial statements.
FINANCIAL HIGHLIGHTS
• The Agency’s governmental activities net assets deficit increased $5.71
million, or -9.59 %.
• During the year, the Agency had expenses that were $5.66 million less than
the $50.69 million in expenses recorded by the Agency in its governmental
activities in the prior year.
• The Agency’s governmental activities program revenues and general
revenues decreased by $7.37 million, or -15.79 % from the prior year, and
program expenses decreased $5.66 million, or -11.16%.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of
Net Assets and Statement of Activities provide information about the activities of
the Agency as a whole and present a long-term view of the Agency’s finances.
Following these Statements are governmental fund statements that tell how
these services were financed in the short term as well as what remains for future
spending. Fund financial statements also report the Agency’s operation in more
detail than the government-wide statements by providing information about the
Agency’s most significant funds.
REPORTING THE AGENCY AS A WHOLE
The financial reports contained in this document are prepared on two basis of
accounting – accrual and the modified accrual basis of accounting as follows:
5
Government-Wide Financial Statements:
The Statement of Net Assets and the Statement of Activities report information
using the accrual basis of accounting, which is similar to the accounting used by
most private-sector companies. All of the current year’s revenues and expenses
are taken into account regardless of when cash is received or paid.
These two statements report the Agency’s net assets and changes in them. Net
assets are the difference between assets and liabilities, which is one way to
measure the Agency’s financial health, or financial position. Over time, increases
or decreases in the Agency’s net assets are an indication of whether its financial
health is improving or deteriorating.
In the Statement of Activities, we separate the Agency expenditures into general
government, planning and development and interest on long-term debt.
Revenues are separated into program and General revenues. The major General
revenue is property taxes, which are netted against the payments the Agency
must pay to other agencies in accordance with Tax Sharing Agreements.
Both of these Statements are summary in nature as opposed to the following
discussion of the Fund Financial Statements, which are more detailed in nature.
Fund Financial Statements:
The fund financial statements provide detailed information about the most
significant funds and other funds – not the Agency as a whole. Some funds are
required to be established by State law and by bond covenants. However,
management established many other funds to help it control and manage money
for particular purposes or to show that it is meeting legal responsibilities for using
certain taxes, grants and other resources.
The Agency only has governmental type funds.
Governmental Funds - Most of the Agency’s basic services are reported in
governmental funds, which focus on how money flows in and out of those funds
and the balances left at year-end that are available for spending. These funds
are reported using the modified accrual basis of accounting, which measures
cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the Agency’s
general government operations and the basic services it provides. Governmental
fund information helps determine whether there are more or fewer financial
resources that can be spent in the near future to finance the Agency’s programs.
The differences of results in the Governmental Fund financial statements to
those in the Government-Wide financial statements are explained in a
reconciliation following each Governmental Fund financial statement.
6
THE AGENCY AS A WHOLE
Our analysis below focuses on the net deficit and changes in net deficit of the
Agency’s Government-Wide activities.
The Agency’s net assets deficit increased $5.71 million, or -9.59 %.
2009 2008 Change
Current and other assets 128,400,554$ 135,603,448$ (7,202,894)$
Capital assets 72,438,150 74,552,293 (2,114,143)
Total assets 200,838,704 210,155,741 (9,317,037)
Current liabilities 5,229,441 5,501,718 (272,277)
Non-current liabilities 260,906,711 264,238,499 (3,331,788)
Total liabilities 266,136,152 269,740,217 (3,604,065)
Net assets:
Invested in capital assets,
net of related debt 27,318,390 27,383,962 (65,572)
Restricted 59,870,074 54,308,750 5,561,324
Unrestricted (152,485,912) (141,277,188) (11,208,724)
Total net assets (65,297,448)$ (59,584,476)$ (5,712,972)$
Net Assets
Governmental activities
The Agency’s Net Assets is made up of three components: Investment in Capital
Assets, Net of Related Debt, Restricted Net Assets and Unrestricted Net Deficit.
Unrestricted deficit, the part of net deficit that can be used to finance day-to-day
operations, increased from $(141.28) million to $(152.49) million, or 7.93 %. The
Agency currently has an unrestricted net deficit because of the debt it has issued.
Proceeds from the debt were used for capital improvements on behalf of the City
or contributed to other taxing agencies or the public and is not offset by
investments in capital assets. Examples of these contributions would be the
issuing of bonds to construct flood control improvements which were donated to
the Coachella Valley Water District, bond proceeds that were used for street
improvements in the Cove that were dedicated to the City, and bond proceeds for
the construction of SilverRock that were dedicated to the Golf Enterprise Fund.
Total assets decreased by $9.32 million, which generally represents a decrease
in cash of $5.14 million and a decrease of due from other governments of $1.44
million.
Total liabilities decreased by $3.60 million, which generally represents the
payment of principal on long-term debt.
7
2009 2008 Change
Program revenues
Charges for services 16,136 - 16,136
Operating grants and contributions - - -
Capital grants and contributions - - -
General revenues
Property taxes (net of pass-through payments) 36,702,197 40,216,054 (3,513,857)
Use of money and property 2,133,507 5,118,863 (2,985,356)
Intergovernmental 327,205 492,355 (165,150)
Other 140,015 866,668 (726,653)
Total Revenues 39,319,060 46,693,940 (7,374,880)
Expenses:
General government 4,175,208 3,722,604 452,604
Planning and development 25,835,058 32,245,746 (6,410,688)
Interest on long-term debt 15,021,766 14,720,956 300,810
Total Expenses 45,032,032 50,689,306 (5,657,274)
Change in Net Assets (5,712,972) (3,995,366) (1,717,606)
Net assets - 7/1/2008 (59,584,476) (55,589,110) (3,995,366)
Net assets -6/30/2009 (65,297,448) (59,584,476) (5,712,972)
Changes in Net Assets
Total revenues decreased from $46.69 million to $39.32 million, or -15.79 %. The
major reasons that contributed to the decrease were the following:
• Decrease in property values that provided less tax increment revenue (net of
pass-through payments of - 9.57%.
• Decrease in interest income from the use of money as a result of a lower
interest rate environment - 58.32 %.
The major factor that contributed to the decrease in expenses from $50.69 million
to $45.03 million or -11.16% was:
• Decrease in the amount of 2nd Trust deeds issued on the Watercolors Homes -
$2.55 million.
GOVERNMENTAL FUNDS
The combined fund balance of $111.69 million decreased from $118.50 million,
or - 5.75%. The Agency has reserved $ 25.14 million for advances, notes, and
bond projects. More detailed information about the combined fund balance
reserves may be found in the Notes to the financial statements.
8
Major funds balance changes are noted below:
• For the 2004 Low and Moderate Income Housing fund, fund balance decreased
$13.59 million.
• For the Redevelopment Agency Debt Service PA 1 and PA 2 funds, fund
balance increased by $397,600 and $1.33 million, respectfully based upon tax
increment revenues and interest earnings exceeding debt service, pass through
payments, and transfers.
• For the Redevelopment Agency Low and Moderate Income PA 1 and PA 2
funds, fund balance increased by $461,500 and $3.37 million, respectfully
based upon tax increment revenues and interest earnings exceeding debt
service transfers, capital outlay, and general and planning and development
expenditures.
• The Redevelopment Agency Capital Project PA 1 Fund increased by $1.81
million based upon interest earnings and transfers in exceeding capital outlay
and general costs.
•The Redevelopment Agency Capital Project PA 2 Fund decreased by $593,000
based upon interest earnings exceeding capital outlay and general costs.
More detailed information on the fund financial statements balances is presented
in the notes to the financial statements.
Budgetary Highlights
During the Fiscal Year, the Agency’s Board makes revisions to the Agency
budget. Revisions are made on a case by case basis and presented to the
Agency Board by staff for their consideration at Agency Board meetings. These
revisions are generally for appropriations relating to Capital Improvement
Projects to request an additional appropriation to cover the cost of a change
order or an additional construction amount based on a bid opening. In addition, a
review of all revenue and expenditure Agency line items is conducted by staff
based upon mid-year data to determine if changes in other revenue and
expenditure line items should be presented to the Agency Board for their
consideration.
Formal budgetary integration is employed as a management control device
during the year for all Agency Funds. Budgetary data for the Agency two (2)
Special Revenue Housing Funds has been presented herein. More detailed
information about the Agency’s budget is presented in the Notes to the financial
statements.
9
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2009, the Agency had $72.44 million invested in a broad range of
capital assets, including land and buildings and improvements. This amount
represents a net decrease (including additions and deductions) of $2.11 million,
or 2.84% over last year.
2009 2008 Change
Land 69,286,119$ 74,268,960$ (4,982,841)$
Buildings 3,434,270 500,000 2,934,270
Less Accumulated depreciation (282,239) (216,667) (65,572)
Net Buildings after depreciation 3,152,031 283,333 2,868,698
Total 72,438,150$ 74,552,293$ (2,114,143)$
Capital Assets (Net Depreciation)
This year’s major additions (deletions) were as follows:
Washington Street Buildings and Land $ 6.18 million
Hammer Property Transfer to Coachella Valley Housing
Coalition for Wolfe Waters Apartments $ (8.85) million
Debt
At year-end, the Agency’s governmental activities had $260.91 million in bonds
and notes versus $264.24 million last year, a decrease of $3.33 million, or -
1.26%.
Debt type:2009 2008 Change
Loans Payable 2,308,037$ -$ 2,308,037$
City Advances 31,378,966 31,378,966 -$
Pass through agreement 4,274,652 5,260,620 (985,968)$
Tax allocation bonds(net
original issue discount) 138,244,468 141,277,702 (3,033,234)$
Revenue bonds (net
original issue premium)84,700,588 86,321,211 (1,620,623)$
Total 260,906,711$ 264,238,499$ (3,331,788)$
Outstanding Debt at Year End
The Agency was able to meet its current year debt obligation in a timely manner.
In addition to the repayment of the long term debt bond principal, $2.31 million in
loans payable were assumed to the purchase of the Washington Street
10
Apartments. Debts issued in the prior years have been used to finance various
capital projects. An example of this is the purchase of land, and construction of
the City’s municipal golf course – SilverRock.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing for Fiscal Year 2010-2011, management is looking at the following
factors that will impact its operations:
As the State of California attempts to balance their budget, it has passed Senate
Bill 26 which creates a Supplemental Educational Revenue Augmentation Fund
(SERAF) to require the County auditor to transfer property tax increment that
would otherwise be sent to the Redevelopment Agency instead be sent to the
schools to meet the State’s Proposition 98 obligations. For Fiscal Year 2009-
2010 and 2011-2012, the amount of the SERAF shift is estimated to be $23.56
million and $4.85 million, respectively.
While the Redevelopment Agencies Project Areas have available land for future
development, the recent economic downturn has impacted property tax values in
two ways. Construction activity has slowed significantly and projects that had
been approved and planned have been postponed due to the inability of builders
and buyers to obtain financing. In addition, existing properties have had their
property values reassessed downward by the County Assessor.
CONTACTING THE AGENCY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers,
and investors and creditors with a general overview of the Agency’s finances and
to show the Agency’s accountability for the money it receives. If you have
questions about this report or need additional financial information, contact Mr.
John Falconer in the Finance Department at the City of La Quinta, 78-495 Calle
Tampico, La Quinta, California 92253-1504, or (760) 777-7150.
11
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF NET ASSETS
JUNE 30, 2009
Governmental Activities
Assets:
Cash and investments 86,650,758$
Receivables:
Tax increment 877,257$
Accounts 74,388
Interest 102,858
Loans 13,239,548
Total Receivables 14,294,051
Due from other governments 4,321,119
Deposits with others 4,540
Deferred charges 4,382,051
Prepaid items 19,197
Restricted assets:
Cash and investments with trustees 18,728,838
Capital assets (Net of Depreciation):
Buildings, net 3,152,031
Land 69,286,119
Total Capital Assets 72,438,150
Total Assets 200,838,704
Liabilities:
Accounts payable and accrued expenses 4,207,600
Due to other governments 951,624
See Notes to Financial Statements
g ,
Deposits from others 70,217
Long-term liabilities:
Due within one year 5,962,596
Due in more than one year 254,944,115
Total Long-Term Liabilities 260,906,711
Total Liabilities 266,136,152
Net Assets:
Invested in capital assets, net of related debt 27,318,390
Restricted for:
Community development 26,135,714
Debt service 33,734,360
Unrestricted (152,485,912)
Total Net Assets (65,297,448)$
See Notes to Financial Statements 12
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Net (Expense)
Revenues and
Changes in
Operating Capital Net Assets
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Governmental Activities:
General government 4,175,208$ -$ -$ -$ (4,175,208)$
Planning and development 25,835,058 16,136 - - (25,818,922)
Interest on long-term debt 15,021,766 - - - (15,021,766)
Total Governmental Activities 45,032,032$ 16,136$ -$ -$ (45,015,896)
General Revenues:
Taxes (net of pass-through payments)36,702,197
Intergovernmental 327,205
Use of money and property 2,133,507
Other 140,015
Total General Revenues 39,302,924
Change in Net Assets (5,712,972)
Net Assets at Beginning of Year (59,584,476)
Net Assets at End of Year (65 297 448)$
Program Revenues
See Notes to Financial Statements
NetAssets atEnd ofYear (65,297,448)$
See Notes to Financial Statements 13
LA QUINTA REDEVELOPMENT AGENCY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2009
Special Special Capital Capital
Revenue Revenue Projects Projects
Combined
Low and Moderate
Housing
Low and Low and 2004
Moderate Moderate Low/Mod
Housing Housing Bond Project
Assets:
Cash and investments 4,128,834$ 17,636,140$ -$ 29,816,233$
Cash and investments with trustee - - 6,999,121 11,729,717
Receivables:
Tax increment 76,709 101,742 - -
Accounts 10,685 42,703 - -
Interest 3,760 22,805 - 34,557
Loans 3,795,746 9,443,802 - -
Due from Low and Moderate
Housing Funds - 2,143,702 - -
Advances to the City of La Quinta - - - 3,385,401
Deposits with others - 4,540 - -
Prepaid items - 19,197 - -
Total Assets 8,015,734$ 29,414,631$ 6,999,121$ 44,965,908$
Liabilities and Fund Balances:
Liabilities:
Redevelopment
Agency - PA No. 1
Redevelopment
Agency - PA No. 1
Redevelopment
Agency PA No. 2
Liabilities:
Accounts payable 25,838$ 53,911$ -$ 36,625$
Deposits from others 12,785 29,597 - -
Due to Low and Moderate
Housing Funds - - 2,143,702 -
Due to other governments - - - -
Deferred revenue 1,728,718 9,443,802 - -
Total Liabilities 1,767,341 9,527,310 2,143,702 36,625
Fund Balances:
Reserved:
Advances to the City of La Quinta - - - 3,385,401
Prepaid items - 19,197 - -
Notes receivable 2,067,028 - - -
Bond projects - - 6,999,121 11,729,717
Deposits - 4,540 - -
Unreserved:
Designated:
Debt service - - - -
Continuing projects 4,181,365 19,863,584 - 29,814,165
Undesignated - - (2,143,702) -
Total Fund Balances 6,248,393 19,887,321 4,855,419 44,929,283
Total Liabilities and
Fund Balances 8,015,734$ 29,414,631$ 6,999,121$ 44,965,908$
See Notes to Financial Statements 14
LA QUINTA REDEVELOPMENT AGENCY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2009
Assets:
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Due from Low and Moderate
Housing Funds
Advances to the City of La Quinta
Deposits with others
Prepaid items
Total Assets
Liabilities and Fund Balances:
Liabilities:
Capital Debt Debt
Projects Service Service
Total
Tax Tax Governmental
Project Increment Increment Funds
1,122,857$ 17,755,276$ 16,191,418$ 86,650,758$
- - - 18,728,838
- 306,837 391,969 877,257
21,000 - - 74,388
1,252 19,587 20,897 102,858
- - - 13,239,548
- - - 2,143,702
935,718 - - 4,321,119
- - - 4,540
- - - 19,197
2,080,827$ 18,081,700$ 16,604,284$ 126,162,205$
Redevelopment
Agency PA No. 2
Redevelopment
Agency - PA No. 1
Redevelopment
Agency PA No. 2
Liabilities:
Accounts payable
Deposits from others
Due to Low and Moderate
Housing Funds
Due to other governments
Deferred revenue
Total Liabilities
Fund Balances:
Reserved:
Advances to the City of La Quinta
Prepaid items
Notes receivable
Bond projects
Deposits
Unreserved:
Designated:
Debt service
Continuing projects
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
19,628$ -$ -$ 136,002$
27,835 - - 70,217
- - - 2,143,702
- 599,558 352,066 951,624
- - - 11,172,520
47,463 599,558 352,066 14,474,065
935,718 - - 4,321,119
- - - 19,197
- - - 2,067,028
- - - 18,728,838
- - - 4,540
- 17,482,142 16,252,218 33,734,360
1,097,646 - - 54,956,760
- - - (2,143,702)
2,033,364 17,482,142 16,252,218 111,688,140
2,080,827$ 18,081,700$ 16,604,284$ 126,162,205$
See Notes to Financial Statements 15
LA QUINTA REDEVELOPMENT AGENCY
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2009
Fund balances of governmental funds 111,688,140$
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. 72,438,150
Deferred revenue is present in governmental fund financial statements to
indicate that receivables are not available currently; however, in the Statement of
Net Assets these deferrals are eliminated.11,172,520
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Unamortized debt issuance costs - amortized over life of new bonds 4,382,051
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds
Bonds payable (226,058,037)
See Notes to Financial Statements
Loans from City (31,378,966)
Other debt (4,274,652)
Unamortized net original issue discounts and (premiums)804,944
Accrued interest payable for the current portion of interest due on Tax Allocation
Bonds has not been reported in the governmental funds.(4,071,598)
Net assets of governmental activities (65,297,448)$
See Notes to Financial Statements 16
THIS PAGE INTENTIONALLY LEFT BLANK
17
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Special Special Capital Capital
Revenue Revenue Projects Projects
Combined
Low and Moderate
Housing
Low and Low and 2004
Moderate Moderate Low/Mod
Housing Housing Bond Project
Revenues:
Taxes and assessments 10,129,845$ 5,695,928$ -$ -$
Use of money and property 227,847 406,256 165,610 684,429
Intergovernmental - 327,205 - -
Other revenue 91,632 64,496 - -
Total Revenues 10,449,324 6,493,885 165,610 684,429
Expenditures:
Current:
General government 1,188,917 867,281 - 1,007,276
Planning and development 6,379,451 204,853 2,096,000 -
Capital outlay - 246,167 11,658,462 2,872,058
Debt service - 155,994 - -
Total Expenditures 7,568,368 1,474,295 13,754,462 3,879,334
Excess (Deficiency) of Revenues
Redevelopment
Agency - PA No. 1
Redevelopment
Agency - PA No. 1
Redevelopment
Agency PA No. 2
Excess (Deficiency) ofRevenues
Over (Under) Expenditures 2,880,956 5,019,590 (13,588,852) (3,194,905)
Other Financing Sources (Uses):
Transfers in - 307,656 - 5,000,000
Transfers out (4,752,176) (1,953,599) - -
Long-term debt issued 2,332,752 - - -
Pass-through agreement payments - - - -
Total Other Financing
Sources (Uses):(2,419,424) (1,645,943) - 5,000,000
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses 461,532 3,373,647 (13,588,852) 1,805,095
Fund Balances:
Beginning of Year 5,786,861 16,513,674 18,444,271 43,124,188
End of Year 6,248,393$ 19,887,321$ 4,855,419$ 44,929,283$
See Notes to Financial Statements 18
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Revenues:
Taxes and assessments
Use of money and property
Intergovernmental
Other revenue
Total Revenues
Expenditures:
Current:
General government
Planning and development
Capital outlay
Debt service
Total Expenditures
Excess (Deficiency) of Revenues
Capital Debt Debt
Projects Service Service
Total
Tax Tax Governmental
Project Increment Increment Funds
-$ 40,519,380$ 22,783,714$ 79,128,867$
37,256 220,855 269,131 2,011,384
- - - 327,205
23 - - 156,151
37,279 40,740,235 23,052,845 81,623,607
300,643 484,171 261,348 4,109,636
- - - 8,680,304
329,496 - - 15,106,183
- 16,062,554 4,230,311 20,448,859
630,139 16,546,725 4,491,659 48,344,982
Redevelopment
Agency PA No. 2
Redevelopment
Agency - PA No. 1
Redevelopment
Agency PA No. 2
Excess (Deficiency) ofRevenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Pass-through agreement payments
Total Other Financing
Sources (Uses):
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses
Fund Balances:
Beginning of Year
End of Year
(592,860) 24,193,510 18,561,186 33,278,625
- 4,444,520 1,953,599 11,705,775
- (5,000,000) - (11,705,775)
- - - 2,332,752
- (23,240,384) (19,186,286) (42,426,670)
- (23,795,864) (17,232,687) (40,093,918)
(592,860) 397,646 1,328,499 (6,815,293)
2,626,224 17,084,496 14,923,719 118,503,433
2,033,364$ 17,482,142$ 16,252,218$ 111,688,140$
See Notes to Financial Statements 19
LA QUINTA REDEVELOPMENT AGENCY
GOVERNMENTAL FUNDS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Net change in fund balances - total governmental funds (6,815,293)$
Amounts reported for governmental activities in the statement of activities differ
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net assets.5,700,683
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the statement of net assets:
Amortization for current fiscal year (185,679)
Unamortized premium or discounts on bonds issued are revenue or expenditures
in the governmental funds, but these are spread to future periods over the life of
the new bonds:
Amortization for current fiscal year (36,143)
Governmental funds report capital outlay as expenditures. However, in the
statement of activities the cost of those assets in capitalized and allocated
over their estimated useful lives through depreciation expense:
Capital outlay expenditures removed 6 796 429
See Notes to Financial Statements
Capital outlay expenditures removed 6,796,429
Disposal of capital asset (8,845,000)
Depreciation (65,572)
Proceeds of debt is revenue in the governmental funds, but these are additions
to the statement of net assets.(2,332,752)
Revenues reported in the governmental funds which were previously
deferred and meet the revenue recognition criteria currently and, therefore,
Are not reported as revenues in the Statement of Activity.122,123
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:
Current accrual of interest due on bonds (4,071,598)
Prior year accrual of interest due on bonds 4,019,830
Change in net assets of governmental activities (5,712,972)$
See Notes to Financial Statements 20
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,786,861$ 5,786,861$ 5,786,861$ -$
Resources (Inflows):
Taxes and Assessments:
Tax increment 11,501,200 11,169,000 10,129,845 (1,039,155)
Use of Money and Property:
Interest income 53,000 25,000 (12,744) (37,744)
Rental income 225,000 225,000 240,591 15,591
Other revenue:
Miscellaneous revenues - 650 603 (47)
Loan repayments - 100,000 91,029 (8,971)
Transfers from other funds - - - -
Proceeds from sale of capital asset 150,000 150,000 - (150,000)
Long-term debt issued - 2,453,458 2,332,752 (120,706)
Amounts Available for Appropriation 17,716,061$ 19,909,969$ 18,568,937$ (1,341,032)$
Charges to Appropriation (Outflow):
Current:
General Government:
Administrative costs 807,221$ 807,221$ 827,793$ (20,572)$
Professional services 483,910 513,019 361,124 151,895
Planning and development:
Real estate acquisitions - 6,517,255 6,188,260 328,995
Acquisition cost 150,000 450,000 191,191 258,809
Subsidy to low and moderate
housing 250,000 - - -
Transfer to other funds 4,444,479 4,752,135 4,752,176 (41)
Total Charges to Appropriations 6,135,610 13,039,630 12,320,544 719,086
Budgetary Fund Balance, June 30 11,580,451$ 6,870,339$ 6,248,393$ (621,946)$
See Notes to Financial Statements 21
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 2
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 16,513,674$ 16,513,674$ 16,513,674$ -$
Resources (Inflows):
Taxes and Assessments:
Tax increment 5,872,700 5,843,250 5,695,928 (147,322)
Use of Money and Property:
Interest income 380,500 322,887 287,443 (35,444)
Rental income - 108,893 118,813 9,920
Intergovernmental:
Federal grants - 335,392 327,205 (8,187)
Other revenue:
Miscellaneous revenues - 2,817 7,902 5,085
Loan repayments - 45,000 40,458 (4,542)
Developer participation - - 16,136 16,136
Transfers from other funds - 307,656 307,656 -
Amounts Available for Appropriation 22,766,874$ 23,479,569$ 23,315,215$ (164,354)$
Charges to Appropriation (Outflow):
Current:
General Government:
Administrative costs 423,554$ 423,554$ 428,216$ (4,662)$
Professional services 355,290 609,426 439,065 170,361
Planning and development:
Acquisition cost 100,000 100,000 - 100,000
Subsidy to low and moderate
housing - 286,200 204,853 81,347
Capital Outlay:
Project improvement costs - - 246,167 (246,167)
Debt Service:-
Interest expense - 137,544 131,279 6,265
Long-term debt repayments - 22,294 24,715 (2,421)
Transfer to other funds 1,983,598 4,780,742 1,953,599 2,827,143
Total Charges to Appropriations 2,862,442 6,359,760 3,427,894 2,931,866
Budgetary Fund Balance, June 30 19,904,432$ 17,119,809$19,887,321$ 2,767,512$
See Notes to Financial Statements 22
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Note 1: Organization and Summary of Significant Accounting Policies
a. Organization and Tax Increment Financing
The La Quinta Redevelopment Agency is a component unit of a reporting entity that
consists of the following primary and component units:
Reporting Entity:
Primary Government:
City of La Quinta
Component Units:
La Quinta Redevelopment Agency
City of La Quinta Public Financing Authority
Redevelopment Goals and Objectives
The general objective of the Redevelopment Plan adopted by the Agency is to encourage
investment in the Redevelopment Project Areas by the private sector. The
Redevelopment Plan provides for the demolition of buildings and improvements, the
relocation of any displaced occupants, and the construction of streets, parking facilities,
utilities and other public improvements. The Redevelopment Plan also includes the
ability to redevelop land by private enterprise or public agencies, the rehabilitation of
structures, the rehabilitation or construction of single family and low and moderate
income housing, and participation by owners and tenants of properties in the
Redevelopment Project.
Redevelopment Project Areas
The Agency has established two redevelopment project areas. On November 29, 1983,
the City Council approved and adopted the Redevelopment Plan for the La Quinta
Redevelopment Project Area No. 1. On May 16, 1989, the City Council approved and
adopted the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 2.
These plans provide for the elimination of blight and deterioration that was found to exist
in the project areas.
Tax Increment Financing
The Law provides a means for financing redevelopment projects based upon an
allocation of taxes collected within a redevelopment project. The assessed valuation of a
redevelopment project last equalized prior to adoption of a redevelopment plan or
amendment to such redevelopment plan, or “base roll”, is established and, except for any
period during which the assessed valuation drops below the base year level, the taxing
bodies, thereafter, receive the taxes produced by the levy of the current tax rate upon the
base roll. Taxes collected upon any increase in assessed valuation over the base roll
(“tax increment”) are paid and may be pledged by a redevelopment agency to the
repayment of any indebtedness incurred in financing or refinancing a redevelopment
project. Redevelopment agencies themselves have no authority to levy property taxes.
23
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
b. Basis of Accounting and Measurement Focus
The basic financial statements of the Agency are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the basic financial statements
Government-wide Financial Statements
Government-wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business-type activities of the primary
government (including its blended component units), as well as its discreetly presented
component units. The La Quinta Redevelopment Agency has no business-type activities
or discretely presented component units. For the most part, effect of interfund activity
has been removed from these statements. Eliminations have been made in the
Statement of Activities so that certain allocated expenses are recorded only once (by the
function to which they were allocated). However, general government expenses have
not been allocated as indirect expenses to the various functions of the Agency.
The accompanying government-wide financial statements for the Agency present
negative net assets because the primary activity of the Agency is to issue debt to
construct infrastructure that will be owned and maintained by the City.
Government-wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and obligations
of the reporting government are reported in the government-wide financial statements.
Basis of accounting refers to when revenues and expenditures are recognized in the
accounts and reported in the financial statements. Under the accrual basis of
accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-
exchange transaction are recognized in accordance with the requirements of GASB
Statement No. 33.
Program revenues include charges for services and payments made by parties outside of
the reporting government’s citizenry if that money is restricted to a particular program.
Program revenues are netted with program expenses in the statement of activities to
present the net cost of each program. Amounts paid to acquire capital assets are
capitalized as assets in the government-wide financial statements, rather than reported
as expenditure. Proceeds of long-term debt are recorded as a liability in the
government-wide financial statements, rather than as other financing source. Amounts
paid to reduce long-term indebtedness of the reporting government are reported as a
reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the Agency 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
24
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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 primary government’s governmental, proprietary, and
fiduciary funds are presented after the government-wide financial statements. These
statements display information about major funds individually and non-major funds in the
aggregate for governmental and enterprise funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds primarily
represent assets held by the Agency in a custodial capacity for other individuals or
organizations. The Agency has no non-major funds, enterprise funds, or fiduciary funds.
Governmental Funds
In the fund financial statements, governmental funds and agency 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 Agency uses
a sixty day availability period.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods or
services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they are
based takes place. Imposed non-exchange 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.
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.
Non-current 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.
25
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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 an other financing source 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.
c. Major Funds
The following funds are presented as major funds in the accompanying basic financial
statements:
Special Revenue, Low and Moderate Income Housing P.A. No. 1 and No. 2 Funds – To
account for the required 20% set aside of property tax increments that is legally restricted
for increasing or improving housing for low and moderate income households.
Debt Service Funds, P.A. No. 1 and No. 2 – To account for the accumulation of
resources for the payment of debt service for bond principal, interest and trustee fees.
Capital Projects Funds, P.A. No. 1 and No. 2 – To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction and
land acquisition.
2004 Low and Moderate Income Housing Fund – To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction, and
land acquisition for low and moderate income housing projects.
d. Cash and Investments
For financial reporting purposes, investments are reported at their fair market 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.
e. 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 fixed assets are valued at their estimated fair market value at the date of the
contribution. Generally, fixed asset purchases in excess of $5,000 are capitalized if they
have an expected useful life of three years or more. Buildings are depreciated over a
useful life of thirty years.
Capital assets include public domain (infrastructure) general fixed assets consisting of
certain improvements including roads, streets, sidewalks, medians, and storm drains.
26
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
Budgets and Budgetary Accounting
The Governing Board adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds. The City Manager or his designee is authorized to
transfer budgeted amounts between the accounts of any department. Revisions that
alter the total appropriations of any department or fund are approved by the Governing
Board. 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.
b. 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 a reservation of fund balance. They represent the estimated
amount of the expenditure ultimately to result if unperformed contracts in-process at
year-end is completed. They do not constitute expenditures or estimated liabilities. As of
June 30, 2009, the Agency had no encumbrances.
c. Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
Note 3: Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the
following:
Cash and investments pooled with the City $ 86,650,758
Cash and investments with trustees 18,728,838
$ 105,379,596
The Agency’s funds are pooled with the City of La Quinta’s cash and investments in order to
generate optimum interest income. The information required by GASB Statement No. 40
related to investments, credit risk, etc., is available in the annual report of the City.
27
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 4: Notes Receivable
Outstanding
Balance at
June 30, 2009
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.
$ 3,764,107
In December 2000, the Agency entered into an
agreement with LINC Housing to receive $9,500,000 as a
reimbursement for Agency costs incurred for the
construction of infrastructure related to the development
of senior apartments. Payments are due to the Agency in
the amount of annual positive cash flow generated by the
rental of the units. All unpaid principal and interest on the
note are due fifty-five years after the completion of the
project. Interest on the note accrues at 3% per annum.
9,443,802
Other notes receivable
31,639
Total notes receivable
$ 13,239,548
Note 5: Due from Other Governments
The Redevelopment Agency advanced funds to the City of La Quinta to help the City meet
the cost of developing the public-owned improvements to the La Quinta Community Park and
La Quinta Library and the North Fire Station. There is no stipulated repayment date
established for the Agency advances. Interest accrues at the earning rate of the City’s
Investment Pool funds, and shall be adjusted quarterly. At June 30, 2009, outstanding Project
Area No. 1 advances were $3,385,401 and Project Area No. 2 advances were $935,718.
Note 6: Capital Assets
Capital asset activity for the year ended June 30, 2009, was as follows:
Balances at
July 1, 2008
Additions
Deletions
Balances at
June 30, 2009
Buildings $ 500,000
$ 2,934,270 $ -
$ 3,434,270
Total cost of depreciable assets 500,000 2,934,270 - 3,434,270
Less accumulated depreciation:
Buildings (216,667) (65,572) -
(282,239)
Net depreciable assets 283,333 2,868,698 -
3,152,031
Capital assets not depreciated:
Land 74,268,960 3,862,159 8,845,000
69,286,119
Capital assets, net $ 74,552,293 $ 6,730,857 $8,845,000
$ 72,438,150
28
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 6: Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government - $ 65,572
Note 7: 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 sixty days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
The La Quinta Redevelopment Agency’s primary source of revenue comes from property
taxes. Property taxes allocated to the Agency are computed in the following manner:
a. The assessed valuation of all property within the project area is determined on the
date of adoption of the Redevelopment Plan.
b. Property taxes related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the
“frozen” assessed valuation of the property are allocated to the City and other
districts.
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. Broadened property tax exemptions could have a similar
effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or
elimination of present exemptions would increase the amount of tax revenues that would be
available to pay principal and interest on debt.
Note 8: Long-Term Liabilities
Tax Allocation Refunding Bonds, Series 1994
Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued by
the Agency 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.
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 and principal of the bonds
are payable solely from pledged tax increment revenues. The bonds are not 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, 2009, is $8,920,000.
29
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long-Term Liabilities (Continued)
Tax Allocation Refunding Bonds, 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 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 from pledged tax increment revenues. There are certain limitations regarding
the issuance of parity debt as further described in the official statement.
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. 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, 2009, is $15,760.000.
Tax Allocation Refunding Bonds, Series 1998 - Project Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by the
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 5.25% 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. 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 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, 2009, is $5,800,000.
Tax Allocation Bonds, Series 2001 – Project Area No. 1
On August 15, 2001, the 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, 2009, is $48,000,000.
30
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long-Term Liabilities (Continued)
Tax Allocation Bonds, Series 2002 – Project Area No. 1
On June 12, 2002, the 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, 2009, is $36,425,000.
Tax Allocation Bonds, Series 2003 – Project Area No. 1
On September 1, 2003, the 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 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.
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, 2009, is $24,285,000.
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 the 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, 2004. Interest payments range from 3% to 5.25% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
31
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long-Term Liabilities (Continued)
Term bonds maturing on September 1, 2024, September 1, 2029 and September 1, 2034,
are subject to mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2017, September 1, 2025 and September 1, 2030, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve
requirement. There are certain limitations regarding the issuance of parity debt as further
described in the official statement. The principal balance of outstanding bonds at
June 30, 2009, is $84,560,000.
Due to County of Riverside – Project Area No. 2
Based on an agreement dated July 5, 1989, between the Agency and the County, 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. Per the agreement, the
Agency must repay all amounts withheld from the County. The tax increment is to be paid to
the County in amounts ranging from $100,000 to $250,000 over a payment schedule through
June 30, 2015. Interest does not accrue on this obligation. The balance at June 30, 2009, is
$1,400,000.
Pass-through Agreement Payable to Coachella Valley Unified School District
An agreement was entered into in 1991 between the 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 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 $474,517 to
$834,076 for a total amount of $15,284,042. Tax increment payments outstanding at
June 30, 2009, totaled $2,874,652. The District agrees to use such funds to provide
classroom and other construction costs, site acquisition, school buses, expansion or
rehabilitation of current facilities.
Washington Street Apartments
In October 2008, the La Quinta 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 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, 2009, is $1,556,283.
32
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long-Term Liabilities (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 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, 2009, is
$751,754.
Advances from the City of La Quinta
The City of La Quinta advances money to the Redevelopment Agency to cover operating and
capital shortfalls. As of June 30, 2009, the amount due to the General Fund from Project
Area No. 1 was $12,000,000. This consists of an outstanding advance of:
1) $6,000,000 loaned to the Redevelopment Agency with repayments beginning in
2030/31 and accrues interest at 10% per annum.
2) $6,000,000 loaned to the Redevelopment Agency requires repayments beginning in
2030/31 and accrues interest at 7% per annum.
As of June 30, 2009, the amount due to the General Fund from Project Area No. 2 was
$19,378,966. This consists of an outstanding advance of:
1) $10,000,000 loaned to the Redevelopment Agency with repayment beginning in
2035/36 and accrues interest at 10% per annum.
2) $9,378,966 loaned to the Redevelopment Agency for the acquisition of nine acres
located on south side of Highway 111 and East of Dune Palms Road with no
repayment schedule and accruing interest at the City’s Local Agency Investment
Fund rate.
The Agency has pledged, as security for bonds it has issued, either directly or through the
Financing Authority, a portion of the tax increment revenue (including Low and Moderate
Income Housing set-aside and pass through allocations) that it receives. These bonds were
to provide financing for various capital projects, accomplish Low and Moderate Income
Housing projects and to defease previously issued bonds. The Agency has committed to
appropriate each year, from these resources amounts sufficient to cover the principal and
interest requirements on the debt. Total principal and interest remaining on the debt is
$398,484,469 with annual debt service requirements as indicated below. For the current
year, the total tax increment revenue, net of pass through payments, recognized by the
Agency was $36,702,197 and the debt service obligation on the bonds was $16,630,367.
33
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long-Term Liabilities (Continued)
The following is a schedule of changes in long-term debt of the Agency for the fiscal year ended
June 30, 2009:
The following schedule illustrates the debt service requirements to maturity for the debt outstanding as of
June 30, 2009:
Balance Balance Due Within
July 1, 2008 Additions Repayments June 30, 2009 One Year
Project Area No. 1:
City Loans - Principal 12,000,000$ -$ -$ 12,000,000$ -$
Pass-through agreement payable:3,660,620 - 785,968 2,874,652 801,688
1994 Tax Allocation Bonds 10,785,000 - 1,865,000 8,920,000 2,000,000
1998 Tax Allocation Bonds 15,760,000 - - 15,760,000 -
2001 Tax Allocation Bonds 48,000,000 - - 48,000,000 -
2002 Tax Allocation Bonds 37,060,000 - 635,000 36,425,000 660,000
2003 Tax Allocation Bonds 24,745,000 - 460,000 24,285,000 475,000
2004 Series A Local Agency Revenue Bonds 16,634,862 - 311,695 16,323,167 322,310
Total 168,645,482 - 4,057,663 164,587,819 4,258,998
Project Area No. 2:
City Loans - Principal 19,378,966 - - 19,378,966 -
Due to County of Riverside 1,600,000 - 200,000 1,400,000 200,000
Provident Loan - 1,572,031 15,748 1,556,283 25,325
US Department of Agriculture - 760,721 8,967 751,754 10,583
1998 Tax Allocation Bonds 5,915,000 - 115,000 5,800,000 120,000
2004 Series A Local Agency Revenue Bonds 4,495,841 - 84,303 4,411,538 87,174
Total 31,389,807 2,332,752 424,018 33,298,541 443,082
Unallocated to Project Areas
2004 Series A Local Agency Revenue Bonds 65,044,297 - 1,219,002 63,825,295 1,260,516
Total 65,044,297 - 1,219,002 63,825,295 1,260,516
Total - All Project Areas 265,079,586$ 2,332,752$ 5,700,683$ 261,711,655 5,962,596$
Adjustments:
Unamortized net original issue (discount) or premium (804,944)
Net Long-term Debt 260,906,711$
Principal Interest Principal Interest Principal Interest
2009 - 2010 2,000,000$ 578,160$ -$ 819,520$ 120,000$ 299,550$
2010 - 2011 2,145,000 426,868 - 819,520 125,000 293,272
2011 - 2012 2,305,000 264,443 - 819,520 130,000 286,738
2012 - 2013 2,470,000 90,155 - 819,520 140,000 279,819
2013 - 2014 - - 655,000 802,490 145,000 272,516
2014 - 2019 - - 3,825,000 3,450,070 840,000 1,240,731
2019 - 2024 - - 4,935,000 2,317,250 1,085,000 992,381
2024 - 2029 - - 6,345,000 857,870 1,405,000 666,881
2029 - 2034 - - - - 1,810,000 247,275
2034 - 2039 - - - - - -
Totals 8,920,000$ 1,359,626$ 15,760,000$ 10,705,760$ 5,800,000$ 4,579,163$
Tax Allocation Refunding Bonds,
Series 1994 - PA No. 1
Tax Allocation Refunding Bonds,
Series 1998 - PA No. 1
Tax Allocation Refunding Bonds
Series 1998 - PA No. 2
34
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 8: Long-Term Liabilities (Continued)
Note 9: Pledge Tax Revenues
All tax revenues received by the Agency other than the amount required by law to be
deposited in a low and moderate income housing fund, are required to be used to meet debt
service requirements of the bond indentures before any payments may be made on other
obligations of the Agency.
Principal Interest Principal Interest Principal Interest
2009 - 2010 -$ 2,430,720$ 660,000$ 1,807,556$ 475,000$ 1,508,106$
2010 - 2011 - 2,430,720 680,000 1,782,926 505,000 1,481,401
2011 - 2012 - 2,430,720 705,000 1,756,429 530,000 1,453,198
2012 - 2013 - 2,430,720 735,000 1,727,981 560,000 1,423,495
2013 - 2014 1,565,000 2,391,595 705,000 1,695,656 590,000 1,392,158
2014 - 2019 9,095,000 10,669,725 4,065,000 7,902,281 3,515,000 6,358,580
2019 - 2024 11,605,000 8,089,803 5,190,000 6,749,694 4,770,000 5,076,104
2024 - 2029 14,865,000 4,742,618 6,660,000 5,250,306 6,485,000 3,303,559
2029 - 2034 10,870,000 849,915 17,025,000 2,094,459 6,855,000 917,861
Totals 48,000,000$ 36,466,536$ 36,425,000$ 30,767,288$ 24,285,000$ 22,914,462$
Principal Interest Principal Interest Principal Interest
2009 - 2010 1,670,000$ 4,243,331$ 200,000$ -$ 801,688$ -$
2010 - 2011 1,740,000 4,175,131 200,000 - 817,722 -
2011 - 2012 1,805,000 4,099,719 250,000 - 834,076 -
2012 - 2013 1,890,000 4,016,581 750,000 - 421,166 -
2013 - 2014 1,975,000 3,924,681 - - - -
2014 - 2019 11,485,000 17,953,106 - - - -
2019 - 2024 14,830,000 14,520,756 - - - -
2024 - 2029 19,090,000 10,163,219 - - - -
2029 - 2034 24,415,000 4,700,072 - - - -
2034 - 2039 5,660,000 145,038 - - - -
2039 - 2044 - - - - - -
Totals 84,560,000$ 67,941,634$ 1,400,000$ -$ 2,874,652$ -$
2004 Series A Local Agency
Revenue Bonds
Tax Allocation Bonds, Series 2001
- PA No. 1
Tax Allocation Bonds, Series
2002 - PA No. 1
Tax Allocation Bonds Series 2003 -
PA No. 1
Due to County of Riverside
Pass-through Payable - Coachella
Valley Unified School District
Principal Interest Principal Interest
2009 - 2010 10,583$ 74,699$ 25,325$ 129,149$
2010 - 2011 11,692 73,591 27,524 126,949
2011 - 2012 12,915 72,367 29,917 124,558
2012 - 2013 14,267 71,014 32,516 121,959
2013 - 2014 15,761 69,520 35,341 119,134
2014 - 2019 107,303 319,106 228,453 543,919
2019 - 2024 176,546 249,863 1,177,207 202,040
2024 - 2029 290,473 135,936 - -
2029 - 2034 112,214 8,602 - -
2034 - 2039 - - - -
2039 - 2044 - - - -
Totals 751,754$ 1,074,698$ 1,556,283$ 1,367,708$
USDA Rural Development Provident Bank Loan
35
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 10: Transfers In and Out
The following transfers were made during the year ended June 30, 2009:
a) $4,444,520 was transferred from the Low/Moderate Income Housing PA No. 1 Fund
to the Redevelopment Agency Debt Service Project Area No. 1 Debt Service Fund to
pay a portion of the 2004 Series A Local Agency Revenue Bond debt service.
b) $1,645,943 was transferred from the Low/Moderate Income Housing PA No. 2 Fund
to the Redevelopment Agency Debt Service PA No. 2 Fund to pay a portion of the
2004 Series A Local Agency Revenue Bond debt service.
c) $307,656 was transferred from the Low/Moderate Income Housing PA No. 2 to the
Low/Moderate Income Housing PA No. 1 Fund for the purchase of land.
d) $5,000,000 was transferred from the Redevelopment Agency Project Area No. 1 to
the Redevelopment Agency Capital Projects PA No. 1 Fund to fund various capital
projects.
Note 11: Due To/From Other Funds
The following interfund receivables and payables were made during the year ended
June 30, 2009:
Due From Other Funds Due To Other Funds Amount
Special Revenue – PA No. 2
Capital Projects – 2004 Low/Mod
Bond $ 2,143,702 (a)
(a) Short term borrowing to cover temporary cash shortfall.
Note 12: Insurance
The La Quinta Redevelopment Agency is covered under the City of La Quinta’s insurance
policies. Therefore, the limitations and self-insured retentions applicable to the City of La
Quinta also apply to its Redevelopment Agency. Additional information as to coverage and
self-insured retentions can be obtained by contacting the City.
Capital Projects
PA No. 1 PA No. 1 PA No. 1 PA No. 2 Total
Transfers Out:
Special Revenue:
Low/Moderate Income Housing PA No. 1 -$ -$ 4,444,520$ 307,656 $ 4,752,176$
Low/Moderate Income Housing PA No. 2 307,656 - - 1,645,943 1,953,599
Debt Service:
Redevelopment Agency - PA No. 1 - 5,000,000 - - 5,000,000
Total 307,656$ 5,000,000$ 4,444,520$ 1,953,599$ 11,705,775$
Special
Revenue
Transfers in
Debt Service
36
La Quinta Redevelopment Agency
Notes to Financial Statements (Continued)
Note 13: Subsequent Events
SERAF Tax Increment Revenue Shift
a. SERAF Tax Increment Revenue Shift for fiscal year 2009-2010 and 2010-2011
On July 23, 2009, the California Legislature passed SB 26, requiring a shift in tax
increment revenues during fiscal years 2009-2010 and 2010-2011 to be deposited into
the county “Supplemental” Educational Revenue Augmentation Fund (SERAF) and which
is to be distributed to meet the State’s Prop 98 obligations to schools. It is estimated that
the Agency’s share of the SERAF shift for fiscal year 2009-2010 and 2010-2011 will
amount to approximately $23,560,481 and $4,850,687, respectively. It is anticipated that
in October 2009, when this law becomes effective, the California Redevelopment
Association and/or its members will file legal action in an attempt to stop these amounts
from having to be paid.
37
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2009
Capital Debt Capital Special
Projects Service Projects Revenue
2004 Low and
Low/Mod Tax Moderate
Bond Increment Project Housing
ASSETS
Cash and investments -$17,755,276$29,816,233$4,128,834$
Cash and investments with trustee 6,999,121 - 11,729,717 -
Receivables:
Tax increment - 306,837 - 76,709
Accounts - - - 10,685
Interest - 19,587 34,557 3,760
Loans - - - 3,795,746
Due from Low and Moderate
Housing Funds - - - -
Advances to the City of La Quinta - - 3,385,401 -
Deposits with others - - - -
Prepaid items - - - -
Total Assets 6,999,121$18,081,700$44,965,908$8,015,734$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ -$36,625$25,838$
Deposits from others - - - 12,785
Due to Low and Moderate
Housing Funds 2,143,702 - - -
Due to other governments - 599,558 - -
Deferred revenue - - - 1,728,718
Total Liabilities 2,143,702 599,558 36,625 1,767,341
Fund Balances:
Reserved:
Advances to the City of La Quinta - - 3,385,401 -
Prepaid items - - - -
Notes receivable - - - 2,067,028
Bond projects 6,999,121 - 11,729,717 -
Deposits - - - -
Unreserved:
Designated:
Debt service - 17,482,142 - -
Continuing projects - - 29,814,165 4,181,365
Undesignated (2,143,702) - - -
Total Fund Balances 4,855,419 17,482,142 44,929,283 6,248,393
Total Liabilities and
Fund Balances 6,999,121$18,081,700$44,965,908$8,015,734$
Redevelopment Agency - PA No. 1
38
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2009
ASSETS
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Due from Low and Moderate
Housing Funds
Advances to the City of La Quinta
Deposits with others
Prepaid items
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits from others
Due to Low and Moderate
Housing Funds
Due to other governments
Deferred revenue
Total Liabilities
Fund Balances:
Reserved:
Advances to the City of La Quinta
Prepaid items
Notes receivable
Bond projects
Deposits
Unreserved:
Designated:
Debt service
Continuing projects
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
(Continued)
Debt Capital Special
Service Projects Revenue
Low and
Tax Moderate
Increment Project Housing
16,191,418 $ 1,122,857 $ 17,636,140 $
- - -
391,969 - 101,742
- 21,000 42,703
20,897 1,252 22,805
- - 9,443,802
- - 2,143,702
- 935,718 -
- - 4,540
- - 19,197
16,604,284 $ 2,080,827 $ 29,414,631 $
- $ 19,628 $ 53,911 $
- 27,835 29,597
- - -
352,066 - -
- - 9,443,802
352,066 47,463 9,527,310
- 935,718 -
- - 19,197
- - -
- - -
- - 4,540
16,252,218 - -
- 1,097,646 19,863,584
- - -
16,252,218 2,033,364 19,887,321
16,604,284 $ 2,080,827 $ 29,414,631 $
Redevelopment Agency PA No. 2
39
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2009
ASSETS
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Due from Low and Moderate
Housing Funds
Advances to the City of La Quinta
Deposits with others
Prepaid items
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits from others
Due to Low and Moderate
Housing Funds
Due to other governments
Deferred revenue
Total Liabilities
Fund Balances:
Reserved:
Advances to the City of La Quinta
Prepaid items
Notes receivable
Bond projects
Deposits
Unreserved:
Designated:
Debt service
Continuing projects
Undesignated
Total Fund Balances
Total Liabilities and
Fund Balances
Debt Capital Special
Service Projects Revenue
Funds Funds Funds
33,946,694$30,939,090$21,764,974$
- 18,728,838 -
698,806 - 178,451
- 21,000 53,388
40,484 35,809 26,565
- - 13,239,548
- - 2,143,702
- 4,321,119 -
- - 4,540
- - 19,197
34,685,984$54,045,856$37,430,365$
-$56,253$79,749$
- 27,835 42,382
- 2,143,702 -
951,624 - -
- - 11,172,520
951,624 2,227,790 11,294,651
- 4,321,119 -
- - 19,197
- - 2,067,028
- 18,728,838 -
- - 4,540
33,734,360 - -
- 30,911,811 24,044,949
- (2,143,702) -
33,734,360 51,818,066 26,135,714
34,685,984$54,045,856$37,430,365$
T O T A L S
40
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009 (Continued)
Capital Debt Capital Special
Projects Service Projects Revenue
2004 Low and
Low/Mod Tax Moderate
Bond Increment Project Housing
Revenues:
Taxes and Assessments:
Tax increment -$ 40,519,380$ -$ 10,129,845$
Use of Money and Property:
Interest income 165,610 220,855 684,429 (12,744)
Rental income - - - 240,591
Intergovernmental:
Federal grants - - - -
Other revenue:
Miscellaneous revenues - - - 603
Loan repayments - - - 91,029
Total Revenues 165,610 40,740,235 684,429 10,449,324
Expenditures:
Current:
General Government:
Administrative costs - 484,171 311,910 827,793
Professional services - - 695,366 361,124
Planning and development:
Real estate acquisitions - - - 6,188,260
Acquisition cost - - - 191,191
Subsidy to low and moderate
housing 2,096,000 - - -
Capital Outlay:
Project improvement costs 11,658,462 - 2,872,058 -
Debt Service:
Interest expense - 11,234,536 - -
Long-term debt repayments - 4,828,018 - -
Total Expenditures 13,754,462 16,546,725 3,879,334 7,568,368
Excess of Revenues over
(under) Expenditures (13,588,852) 24,193,510 (3,194,905) 2,880,956
Other Financing Sources (Uses)
Transfers in - 4,444,520 5,000,000 -
Transfers out - (5,000,000) - (4,752,176)
Long-term debt issued - - - 2,332,752
Pass through agreement payments - (23,240,384) - -
Developer participation - - - -
Total Other Financing Sources
(Uses)- (23,795,864) 5,000,000 (2,419,424)
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses (13,588,852) 397,646 1,805,095 461,532
Fund Balances
Beginning of Year 18,444,271 17,084,496 43,124,188 5,786,861
End of Year 4,855,419$ 17,482,142$ 44,929,283$ 6,248,393$
Redevelopment Agency - PA No. 1
41
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Revenues:
Taxes and Assessments:
Tax increment
Use of Money and Property:
Interest income
Rental income
Intergovernmental:
Federal grants
Other revenue:
Miscellaneous revenues
Loan repayments
Total Revenues
Expenditures:
Current:
General Government:
Administrative costs
Professional services
Planning and development:
Real estate acquisitions
Acquisition cost
Subsidy to low and moderate
housing
Capital Outlay:
Project improvement costs
Debt Service:
Interest expense
Long-term debt repayments
Total Expenditures
Excess of Revenues over
(under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Long-term debt issued
Pass through agreement payments
Developer participation
Total Other Financing Sources
(Uses)
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses
Fund Balances
Beginning of Year
End of Year
Debt Capital Special
Service Projects Revenue
Low and
Tax Moderate
Increment Project Housing
22,783,714$-$5,695,928$
269,131 37,256 287,443
--118,813
--327,205
-23 7,902
--40,458
23,052,845 37,279 6,477,749
261,348 76,394 428,216
-224,249 439,065
---
---
--204,853
-329,496 246,167
3,382,361 -131,279
847,950 - 24,715
4,491,659 630,139 1,474,295
18,561,186 (592,860)5,003,454
1,953,599 -307,656
--(1,953,599)
---
(19,186,286)--
--16,136
(17,232,687)-(1,629,807)
1,328,499 (592,860)3,373,647
14,923,719 2,626,224 16,513,674
16,252,218$ 2,033,364$ 19,887,321$
Redevelopment Agency PA No. 2
42
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Revenues:
Taxes and Assessments:
Tax increment
Use of Money and Property:
Interest income
Rental income
Intergovernmental:
Federal grants
Other revenue:
Miscellaneous revenues
Loan repayments
Total Revenues
Expenditures:
Current:
General Government:
Administrative costs
Professional services
Planning and development:
Real estate acquisitions
Acquisition cost
Subsidy to low and moderate
housing
Capital Outlay:
Project improvement costs
Debt Service:
Interest expense
Long-term debt repayments
Total Expenditures
Excess of Revenues over
(under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Long-term debt issued
Pass through agreement payments
Developer participation
Total Other Financing Sources
(Uses)
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses
Fund Balances
Beginning of Year
End of Year
Debt Capital Special
Service Projects Revenue
Funds Funds Funds
63,303,094$-$15,825,773$
489,986 887,295 274,699
--359,404
--327,205
-23 8,505
--131,487
63,793,080 887,318 16,927,073
745,519 388,304 1,256,009
-919,615 800,189
--6,188,260
--191,191
- 2,096,000 204,853
- 14,860,016 246,167
14,616,897 -131,279
5,675,968 - 24,715
21,038,384 18,263,935 9,042,663
42,754,696 (17,376,617)7,884,410
6,398,119 5,000,000 307,656
(5,000,000)-(6,705,775)
--2,332,752
(42,426,670)--
--16,136
(41,028,551) 5,000,000 (4,049,231)
1,726,145 (12,376,617)3,835,179
32,008,215 64,194,683 22,300,535
33,734,360$ 51,818,066$ 26,135,714$
T O T A L S
43
LA QUINTA REDEVELOPMENT AGENCY
COMPUTATION OF LOW AND MODERATE
INCOME HOUSING FUNDS
EXCESS/SURPLUS
Low and Moderate Low and Moderate
Housing Funds - All Project Areas Housing Funds - All Project Areas
July 1, 2008 July 1, 2009
Opening Fund Balance 40,744,806$ 30,991,133$
Less Unavailable Amounts:
Unspent debt proceeds (Section 33334.12 (g)(3)(B)) (18,444,271)$ (4,855,419)$
Notes receivable (2,076,063) (2,067,028)
(20,520,334) (6,922,447)
Available Low and Moderate Income Housing Funds 20,224,472 24,068,686
Limitation (greater of $1,000,000 or four years set-aside)
Set-Aside for last four years:
2008 - 2009 - 15,825,773
2007 - 2008 16,641,016 16,641,016
2006 - 2007 15,701,666 15,701,666
2005 - 2006 14,089,024 14,089,024
2004 - 2005 10,282,664 -
Total 56,714,370$ 62,257,479$
Base Limitation 1,000,000$ 1,000,000$
Greater amount 56,714,370 62,257,479
Computed Excess/Surplus None None
44