FY 2010-2011 RDA Financial StatementsLA QUINTA REDEVELOPMENT AGENCY
LA QUINTA, CALIFORNIA
FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2011
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, 2011
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LA QUINTA REDEVELOPMENT AGENCY
JUNE 30, 2011
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITOR’S REPORT ............................................................................................. 1
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND INTERNAL
CONTROL OVER COMPLIANCE ............................................................................................... 3
Management’s Discussion and Analysis ........................................................................................... 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Assets ............................................................................................................ 13
Statement of Activities ............................................................................................................... 15
Fund Financial Statements:
Balance Sheet - Governmental Funds ...................................................................................... 16
Reconciliation of the Balance Sheet of Government Funds
to the Statement of Net Assets .................................................................................................. 19
Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds ............................................................................................... 20
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ............................................................................................................... 23
Budgetary Comparison Statement – Low/Moderate Income Housing Fund – PA No. 1 .......... 24
Budgetary Comparison Statement – Low/Moderate Income Housing Fund – PA No. 2 .......... 25
Budgetary Comparison Statement – Housing Authority Fund – PA No. 1 ................................ 26
Budgetary Comparison Statement – Housing Authority Fund – PA No. 2 ................................ 27
Notes to Financial Statements ...................................................................................................... 29
COMBINING AND INDIVIDUAL FUND SCHEDULES
Combining Project Area Balance Sheet -
All Governmental Funds ............................................................................................................... 48
Combining Project Area Statement of Revenues,
Expenditures and Changes in Fund Balances -
All Governmental Funds ............................................................................................................... 52
Computation of Low and Moderate Income Housing
Funds Excess/Surplus .................................................................................................................. 55
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Chair and Members of the Governing Board
La Quinta Redevelopment Agency
City of La Quinta, California
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the La Quinta Redevelopment Agency (Agency), a
component unit of the City of La Quinta, California, as of and for the year ended June 30, 2011, which
collectively comprise the Agency's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Agency's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and the significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the Agency, as of June 30, 2011, and the respective changes in financial position and
budgetary comparisons for the Low/Moderate Income Housing Fund – PA No. 1, Low/Moderate Income
Housing Fund – PA No. 2, Housing Authority Fund – PA No. 1 and Housing Authority Fund – PA No. 2,
thereof for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
We would like to draw the reader’s attention to Note 16 – “California Redevelopment Agency
Uncertainty”. The note provides information on two bills passed, AB1X26 and 27 which dissolve
redevelopment agencies effective October 1, 2011 and provide an option to avoid dissolution by making
certain defined payments.
In accordance with Government Auditing Standards, we have also issued our report dated
September 27, 2011, on our consideration of the 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 control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing
the results of our audit.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis as listed in the table of contents be presented to supplement the basic financial
Brandon W. Burrows, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
Bryan S. Gruber, CPA
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
To the Honorable Chair and Members of the Governing Board
La Quinta Redevelopment Agency
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Agency’s financial statements as a whole. 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 financial statements. These are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated in all material respects in relation to the financial statements as a whole.
Brea, California
September 27, 2011
2
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
AND INTERNAL CONTROL OVER COMPLIANCE
To the Honorable Chair and Members of the Governing Board
La Quinta Redevelopment Agency
City of La Quinta, California
Compliance
We have audited La Quinta Redevelopment Agency’s (Agency) compliance with the California Health and
Safety Code as required by Section 33080.1 for the year ended June 30, 2011. Compliance with the
requirements referred to above is the responsibility of Agency’s management. Our responsibility is to
express an opinion on Agency’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the Guidelines for Compliance
Audits of California Redevelopment Agencies, June 2011, issued by the State Controller and as
interpreted in the Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment
Agencies, August 2011, issued by the Governmental Accounting and Auditing Committee of the California
Society of Certified Public Accountants. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether noncompliance with the compliance requirements referred to
above that could have a material effect on redevelopment program has occurred. An audit includes
examining, on a test basis, evidence about the Agency’s compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the
Agency’s compliance with those requirements.
In our opinion, the Agency complied, in all material respects, with the compliance requirements referred to
above that are applicable to the redevelopment program for the year ended June 30, 2011.
Internal Control Over Compliance
Management of the Agency is responsible for establishing and maintaining effective internal control over
compliance with the compliance requirements referred to above. In planning and performing our audit, we
considered the Agency’s internal control over compliance to determine the auditing procedures for the
purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Agency’s internal control over compliance.
A deficiency in internal control over compliance 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 and correct, noncompliance on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a compliance requirement will not be
prevented, or detected and corrected, on a timely basis.
Brandon W. Burrows, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
Bryan S. Gruber, CPA
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
To the Honorable Chair and Members of the Governing Board
La Quinta Redevelopment Agency
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that might be
deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended for the information of management, the Audit Committee, and the California State
Controller and it is not intended to be and should not be used by anyone other then these specified
parties.
Brea, California
September 27, 2011
4
LA QUINTA REDEVELOPMENT AGENCY
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2011
Our discussion and analysis of the La Quinta Redevelopment Agency’s (Agency)
financial performance for the fiscal year ended June 30, 2011, provides a
comparison of current year to prior year ending results based on the government-
wide statements, an analysis of 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 $59.70
million, or -72%.
• During the year, the Agency had expenses that were $45.58 million more than
the $56.47 million in expenses recorded by the Agency in its governmental
activities in prior years.
• The Agency’s governmental activities program revenues and g eneral revenues
increased by $3,839,000, or 10% from the prior year, and program expenses
increased $45.58 million, or 80.73%.
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
The 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 $59.7 million, or -72%.
The Agency’s Net Assets are 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 $(166.33) million to $(179.21) million, or
7.75%. 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 $86.04 million, which generally represents a decrease
in cash of $52.58 million, a decrease of capital assets of $62.83 million, an
increase of restricted cash from bond proceeds of $26.03 million and an increase
in loans receivable of $ 3.03 million.
Total liabilities decreased by $26.34 million, which generally represent an
increase in accounts payable of $3.99 million, a decrease of pass through
payments to other governmental entities of $13.26 million, and a net decrease of
$13.49 million in long term liabilities due in more than one year.
Description 2011 2010 Change
Current and other assets $ 102,869,302 $ 126,077,764 $ (23,208,462)
Capital assets 10,630,944 73,459,707 (62,828,763)
Total assets 113,500,246 199,537,471 (86,037,225)
Current liabilities 4,611,064 17,809,384 (13,198,320)
Non-current liabilities 251,841,013 264,980,257 (13,139,244)
Total liabilities 256,452,077 282,789,641 (26,337,564
Net assets:
Invested in capital assets,
net of related debt
Restricted 36,262,681 54,781,140 (18,518,459)
Unrestricted (179,214,512) (166,329,057) (12,855,455)
Total net assets $ (142,951,831) $ (83,252,170) $ (59,699,661)
(28,295,747) - 28,295,747
NET ASSETS
Governmental activities
7
Total revenues increased by $3,839,000 to $42.35 million, or 10%. The major
reasons that contributed to the net increase were the following:
• Decrease in property values that provided less tax increment revenue (net of
pass-through payments of – 8.66%.
• Increase in use of money and property from the sale of property at SilverRock
($4.88 million) and along Highway 111 ($3.45 million).
The major factors that contributed to the increase in expenses from $56.47
million to $102.1 million or 80.81% was:
• Increase of $59.1 million in capital contributions to other agencies consisting
primarily of the transfer of public property and buildings to the La Quinta
Housing Authority and the City of La Quinta.
GOVERNMENTAL FUNDS
The combined fund balance of $92.73 million decreased from $106.07 million, or
- 12.58%. The Agency has restricted as nonspendable a total of $ 65.13 million in
long term receivables, future debt service and low and moderate income housing
purposes. In addition, $27.60 million has been assigned for future community
development construction projects. More detailed information about the
combined fund balance reserves may be found in the notes to the financial
statements.
Description 2011 2010 Change
Program revenues:
Charges for services - - -
Operating grants and contributions - - -
Capital grants and contributions - 1,101,442 (1,101,442)
General revenues:
Property taxes (net of pass-through payments) 32,569,795 35,390,317 (2,820,522)
Use of money and property 9,290,106 1,062,027 8,228,079
Intergovernmental - 498,682 (498,682)
Gain on sale of assets 120,628 - 120,628
Other 372,818 461,550 (88,732)
Total revenues 42,353,347 38,514,018 3,839,329
Expenses: -
General government 4,171,683 4,320,577 (148,894)
Planning and development 17,246,705 13,506,150 3,740,555
Contributions to other governments 7,549,574 23,582,367 (16,032,793)
Capital contributions to other agencies 59,061,958 - 59,061,958
Interest on long-term debt 14,023,088 15,059,646 (1,036,558)
Total expenses 102,053,008 56,468,740 45,584,268
Change in Net Assets (59,699,661) (17,954,722) (41,744,939)
Net assets - 7/1/2010 (83,252,170) (65,297,448) (17,954,722)
Net assets - 6/30/2011 (142,951,831) (83,252,170) (59,699,661)
CHANGES IN NET ASSETS
8
Major funds balance changes are noted below:
• For the 2011 Low and Moderate Income Housing Fund, fund balance
increased by $25.54 million from a $28.85 million bond issue.
• For the 2004 Low and Moderate Income Housing Fund, fund balance
decreased $119,000.
• For the Redevelopment Agency Debt Service PA 1 and PA 2 Funds, fund
balances decreased by $8.07 million and $13.90 million, respectively, based
upon tax increment revenues and interest earnings exceeding debt service,
pass through h payments, and transfers. In addition, $22 million in debt service
payments for the repayment of an outstanding advance to the City in Debt
Service PA No. 1 Fund and a similar increase of $19.38 million in debt service
payments for the repayment of an outstanding advance to the City in Debt
Service PA No. 2 Fund were made.
• For the Redevelopment Agency Low and Moderate Income PA 1 and PA 2
Funds, fund balance increased by $811,000 and $1.16 million, respectively,
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 decreased by $20.85
million based upon the use of money and property being less than general
costs, capital outlays, and transfers.
• The Redevelopment Agency Capital Project PA 2 Fund increased by $587,000
based upon the use of money and property and the issuance of $6 million in
bonds being more than general costs, capital outlays, and transfers.
• For the Housing Authority Special Revenue PA 1 and PA 2 Funds, fund
balances increased by $930,000 and $620,000, respectively, based upon
transfers into the funds for the La Quinta Cove and Washington Street rental
programs.
More detailed information on the fund financial statements balances is presented
in the notes to the financial statements.
9
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. In addition, the Capital Projects No. 2 Fund includes the unspent
bond proceeds from the 2011 Subordinate Taxable Tax Allocation Bonds.
In addition, during Fiscal Year 2009-2010, the La Quinta Housing Authority was
created. This separate legal entity has been included in the La Quinta
Redevelopment Agency Statements and follows the same budgetary practices
that were previously discussed.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2011, the Agency had $10.63 million invested in land. This amount
represents a decrease of $62.83 million, or 85.53% over last year.
Description 2011 2010 Change
Land $ 10,630,944 $ 69,855,143 $ (59,224,199)
Buildings - 4,010,888 (4,010,888)
Less Accumulated depreciation - (406,324) 406,324
Net Buildings after depreciation - 3,604,564 (3,604,564)
Total $ 10,630,944 $ 73,459,707 $ (62,828,763)
CAPITAL ASSETS ( NET OF DEPRECIATION)
This year’s additions to capital assets were as follows:
The Agency purchased $8.23 million in land in the Village of La Quinta.
10
This year’s deletions to capital assets were as follows:
• The Agency transferred land and buildings with a historical cost of $27.73
million, to be used for public purposes, to the La Quinta Housing Authority.
• The Agency transferred land and buildings with a historical cost of $27.45
million, to be used for public purposes, to the City of La Quinta.
• The Agency sold two single family homes with a historical cost of $283,000 to
income eligible families.
• The Agency sold two parcels of property with a historical cost of $17.16
million, to be used for public purposes, to the City of La Quinta.
Debt
At year-end, the Agency’s governmental activities had $251.84 million in bonds
and notes versus $264.98 million last year, a decrease of $13.14 million, or
-4.96%.
Description 2011 2010 Change
Loans Payable $ 2,232,816 $ 2,272,129 $ (39,313)
City Advances - 41,378,966 $ (41,378,966)
Pass through agreement 2,255,243 3,272,965 $ (1,017,722)
137,531,922 135,031,234 $ 2,500,688
109,821,032 83,024,965 $ 26,796,067
Total $ 251,841,013 $ 264,980,259 $ (13,139,246)
Revenue bonds ( net original
issue premium)
Tax allocation bonds ( net
original issue discount)
OUTSTANDING DEBT AT YEAR END
The Agency was able to meet its current year debt obligation in a timely manner.
In addition the Agency repaid the City $41.38 million in advances during the year
and issued two bond issues - $6 million in subordinated non-housing taxable
bonds and $28.85 million in subordinated housing taxable revenue bonds.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing for Fiscal Year 2011-2012, management is looking at the following
factors that will impact its operations:
The State of California Budget for Fiscal Year 2011/2012 included AB x1 26 (the
“Dissolution Act”) which immediately suspends all new redevelopment activities
and incurrence of indebtedness, and dissolves redevelopment agencies effective
October 1, 2011; and AB x1 27 (the “Continuation Act”) which allows
redevelopment agencies to avoid dissolution under the Dissolution Act if their
11
host cities/counties elect to comply with the alternative redevelopment program
described in Part 1.9 thereof. Under the Continuation Act, a redevelopment
agency can continue to exist if its host community commits to making certain
payments beginning in January of 2012. On August 2, 2011, the City Council
adopted an ordinance declaring the City’s decision to comply with the
Continuation Act in order to enable the Agency to resume its redevelopment
activities.
The California Redevelopment Association, the League of California Cities, and
two cities filed a legal challenge to the Dissolution Act and the Continuation Act
directly in the California Supreme Court. On August 11, 2012, the Court issued
an order indicating that it would exercise jurisdiction over the lawsuit. The Court
set an expedited briefing schedule to allow it to decide the case before the first
payment is due in January 2012. The Court also stayed the effectiveness of all
of the Continuation Act, and portions of the Dissolution Act.
Because the Continuation Act is currently on hold, the Agreement provides that it
is not effective until the Dissolution Act and Continuation Act have been upheld
by the Court. The Agreement also attempts to preserve the Agency’s and City’s
right to challenge the Dissolution Act and/or Continuation Act, and provides that it
automatically terminates if any court of competent jurisdiction determines that
either the Dissolution Act or Continuation Act are unconstitutional or otherwise
invalid.
While the Redevelopment Agency’s 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.
12
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF NET ASSETS
JUNE 30, 2011
Governmental Activities
Assets:
Cash and investments 44,037,780$
Receivables:
Tax increment 40,746$
Accounts 78,624
Interest 31,191
Loans 6,953,592
Total Receivables 7,104,153
Due from other governments 4,564,860
Deposits with others 6,000
Prepaid costs 10,563
Deferred charges 4,441,840
Net pension asset 100,393
Restricted assets:
Cash and investments with trustees 42,603,713
Capital assets (net of depreciation):
Land 10,630,944
Total Capital Assets 10,630,944
Total Assets 113,500,246
Liabilities:
Accounts payable and accrued expenses 4,089,937
Due to other governments 474,741
Deposits from others 46,386
Long-term liabilities:
Due within one year 6,601,909
Due in more than one year 245,239,104
Total Long-Term Liabilities 251,841,013
Total Liabilities 256,452,077
Net Assets:
Restricted for:
Community development 34,957,138
Debt service 1,305,543
Unrestricted (179,214,512)
Total Net Assets (142,951,831)$
See Notes to Financial Statements 13
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14
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
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 4,171,683$ -$ -$ -$ (4,171,683)$
Planning and development 17,246,705 - - - (17,246,705)
Interest on long-term debt 14,023,088 - - - (14,023,088)
Contributions to other governments 7,549,574 - - - (7,549,574)
Capital contributions
to other agencies 59,061,958 - - - (59,061,958)
Total Governmental Activities 102,053,008$ -$ -$ -$ (102,053,008)
General Revenues:
Taxes (net of pass-through payments)32,569,795
Use of money and property 9,290,106
Gain on sale of assets 120,628
Other 372,818
Program Revenues
See Notes to Financial Statements
Total General Revenues 42,353,347
Change in Net Assets (59,699,661)
Net Assets at Beginning of Year (83,252,170)
Net Assets at End of Year (142,951,831)$
See Notes to Financial Statements 15
LA QUINTA REDEVELOPMENT AGENCY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Special Special Special Special
Revenue Revenue Revenue Revenue
Low and Low and
Moderate Moderate Housing Housing
Housing Housing Authority Authority
Assets:
Cash and investments 8,474,291$ 22,939,847$ 934,767$ 597,765$
Cash and investments with trustee - - - -
Receivables:
Tax increment 6,871 1,278 - -
Accounts - - 13,542 37,082
Interest 5,414 15,926 616 -
Loans 4,012,106 641,486 - -
Prepaid costs - - - 10,563
Due from capital projects funds - - - -
Due from low and moderate
housing funds 3,500 24,760 - -
Due from City - - - -
Deposits with others - - - 6,000
Advances to other funds 4,328 - - -
Total Assets 12,506,510$ 23,623,297$ 948,925$ 651,410$
Liabilities and Fund Balances:
Liabilities:
Accounts payable 82,824$ 40,465$ -$ 2,263$
Deposits from others - - 19,967 26,419
Due to capital projects funds - - - -
Due to low and moderate
housing funds - - - -
Due to other governments - - - -
Deferred revenue 1,930,492 641,486 - -
Advances from other funds - - - 4,328
Total Liabilities 2,013,316 681,951 19,967 33,010
Fund Balances:
Nonspendable:
Prepaid expenditures - - - 10,563
Long-term receivables and deposits 2,081,614 - - 6,000
Restricted for:
Debt service - - - -
Low and moderate income housing 8,411,580 22,941,346 928,958 601,837
Community development - - - -
Total Fund Balances 10,493,194 22,941,346 928,958 618,400
Total Liabilities and
Fund Balances 12,506,510$ 23,623,297$ 948,925$ 651,410$
Redevelopment
Agency
PA No. 1
Redevelopment
Agency
PA No. 2
Redevelopment
Agency
PA No. 1
Redevelopment
Agency
PA No. 2
See Notes to Financial Statements 16
LA QUINTA REDEVELOPMENT AGENCY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Prepaid costs
Due from capital projects funds
Due from low and moderate
housing funds
Due from City
Deposits with others
Advances to other funds
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits from others
Due to capital projects funds
Due to low and moderate
housing funds
Due to other governments
Deferred revenue
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid expenditures
Long-term receivables and deposits
Restricted for:
Debt service
Low and moderate income housing
Community development
Total Fund Balances
Total Liabilities and
Fund Balances
(Continued)
Capital Capital Capital Capital
Projects Projects Projects Projects
Combined Combined
Low/Moderate Low/Moderate
Housing Housing
2011 2004
Low/Mod Low/Mod
Bond Bond Project Project
-$ -$ 9,943,802$ -$
25,535,470 3,331,915 9,204,891 3,931,437
- - - -
3,500 - - 24,500
- - 8,549 307
- - - 2,300,000
- - - -
- - 637,754 -
- - - -
- - 3,284,621 1,280,239
- - - -
- - - -
25,538,970$ 3,331,915$ 23,079,617$ 7,536,483$
-$ -$ 53,296$ 28,944$
- - - -
- - - 637,754
3,500 24,760 - -
- - - -
- - - 2,300,000
- - - -
3,500 24,760 53,296 2,966,698
- - - -
- - - -
- - - -
25,535,470 3,307,155 - -
- - 23,026,321 4,569,785
25,535,470 3,307,155 23,026,321 4,569,785
25,538,970$ 3,331,915$ 23,079,617$ 7,536,483$
Redevelopment
Agency
PA No. 1
Redevelopment
Agency
PA No. 2
See Notes to Financial Statements 17
LA QUINTA REDEVELOPMENT AGENCY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Prepaid costs
Due from capital projects funds
Due from low and moderate
housing funds
Due from City
Deposits with others
Advances to other funds
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits from others
Due to capital projects funds
Due to low and moderate
housing funds
Due to other governments
Deferred revenue
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid expenditures
Long-term receivables and deposits
Restricted for:
Debt service
Low and moderate income housing
Community development
Total Fund Balances
Total Liabilities and
Fund Balances
Debt Debt
Service Service
Total
Tax Tax Governmental
Increment Increment Funds
1,132,207$ 15,101$ 44,037,780$
- 600,000 42,603,713
27,485 5,112 40,746
- - 78,624
379 - 31,191
- - 6,953,592
- - 10,563
- - 637,754
- - 28,260
- - 4,564,860
- - 6,000
- - 4,328
1,160,071$ 620,213$ 98,997,411$
-$ -$ 207,792$
- - 46,386
- - 637,754
- - 28,260
414,728 60,013 474,741
- - 4,871,978
- - 4,328
414,728 60,013 6,271,239
- - 10,563
- - 2,087,614
745,343 560,200 1,305,543
- - 61,726,346
- - 27,596,106
745,343 560,200 92,726,172
1,160,071$ 620,213$ 98,997,411$
Redevelopment
Agency
PA No. 1
Redevelopment
Agency
PA No. 2
See Notes to Financial Statements 18
LA QUINTA REDEVELOPMENT AGENCY
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2011
Fund balances of governmental funds 92,726,172$
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.10,630,944
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.4,871,978
Governmental funds report all pension contributions as expenditures, however
in the Statement of Net Assets any excesses or deficiencies in contributions
in relation to the required contribution are recorded as an asset or liability.100,393
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 4,441,840
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 (250,712,816)
Other debt (2,255,242)
Unamortized net original issue discounts/(premiums)1,127,045
Accrued interest payable for the current portion of interest due on Tax Allocation
Bonds has not been reported in the governmental funds.(3,882,145)
Net assets of governmental activities (142,951,831)$
See Notes to Financial Statements 19
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Special Special Special Special
Revenue Revenue Revenue Revenue
Low and Low and
Moderate Moderate Housing Housing
Housing Housing Authority Authority
Revenues:
Taxes and assessments 8,798,118$ 4,837,259$ -$ -$
Use of money and property 285,314 143,643 251,940 666,159
Other revenue 54,157 8,719 1,302 3,185
Total Revenues 9,137,589 4,989,621 253,242 669,344
Expenditures:
Current:
Planning and development 2,786,661 1,002,756 224,581 318,911
Capital outlay 320,045 409,734 - -
Debt service - - 11 239,768
Total Expenditures 3,106,706 1,412,490 224,592 558,679
Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,030,883 3,577,131 28,650 110,665
Other Financing Sources (Uses):
Transfers in - - 781,094 509,112
Transfers out (5,220,026) (2,461,105) - -
Long-term debt issued - - - -
Pass-through agreement payments - - - -
Gain/(loss) on sale of land held for resale - - 120,628 -
Payment to Supplemental Educational
Revenue Augmentation Fund - - - -
Miscellaneous - - - -
Total Other Financing
Sources (Uses):(5,220,026) (2,461,105) 901,722 509,112
Excess (Deficiency) of Revenues and
Other Sources Over (Under)
Expenditures and Other Uses 810,857 1,116,026 930,372 619,777
Fund Balances:
Beginning of Year 9,682,337 21,825,320 (1,414) (1,377)
End of Year 10,493,194$ 22,941,346$ 928,958$ 618,400$
Redevelopment
Agency
PA No. 1
Redevelopment
Agency
PA No. 2
Redevelopment
Agency
PA No. 1
Redevelopment
Agency
PA No. 2
See Notes to Financial Statements 20
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Revenues:
Taxes and assessments
Use of money and property
Other revenue
Total Revenues
Expenditures:
Current:
Planning and development
Capital outlay
Debt service
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Pass-through agreement payments
Gain/(loss) on sale of land held for resale
Payment to Supplemental Educational
Revenue Augmentation Fund
Miscellaneous
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
(Continued)
Capital Capital Capital Capital
Projects Projects Projects Projects
Combined Combined
Low/Moderate Low/Moderate
Housing Housing
2011 2004
Low/Mod Low/Mod
Bond Bond Project Project
-$ -$ -$ -$
12,065 6,429 5,045,584 3,465,925
- - 305,455 -
12,065 6,429 5,351,039 3,465,925
- - 9,144,495 2,582,605
- 125,124 2,018,681 1,797,569
632,214 - - 194,707
632,214 125,124 11,163,176 4,574,881
(620,149) (118,695) (5,812,137) (1,108,956)
- - - -
- - (15,039,194) (4,303,660)
28,850,000 - - 6,000,000
- - - -
- - - -
- - - -
(2,694,381) - - -
26,155,619 - (15,039,194) 1,696,340
25,535,470 (118,695) (20,851,331) 587,384
- 3,425,850 43,877,652 3,982,401
25,535,470$ 3,307,155$ 23,026,321$ 4,569,785$
Redevelopment
Agency
PA No. 2
Redevelopment
Agency
PA No. 1
See Notes to Financial Statements 21
LA QUINTA REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Revenues:
Taxes and assessments
Use of money and property
Other revenue
Total Revenues
Expenditures:
Current:
Planning and development
Capital outlay
Debt service
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Pass-through agreement payments
Gain/(loss) on sale of land held for resale
Payment to Supplemental Educational
Revenue Augmentation Fund
Miscellaneous
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
Debt Debt
Service Service
Total
Tax Tax Governmental
Increment Increment Funds
35,192,471$ 19,349,036$ 68,176,884$
12,802 47,887 9,937,748
- - 372,818
35,205,273 19,396,923 78,487,450
386,145 215,555 16,661,709
- - 4,671,153
38,198,962 23,043,762 62,309,424
38,585,107 23,259,317 83,642,286
(3,379,834) (3,862,394) (5,154,836)
19,478,126 6,255,653 27,023,985
- - (27,023,985)
- - 34,850,000
(19,309,866) (16,297,223) (35,607,089)
- - 120,628
(4,855,193) - (4,855,193)
- - (2,694,381)
(4,686,933) (10,041,570) (8,186,035)
(8,066,767) (13,903,964) (13,340,871)
8,812,110 14,464,164 106,067,043
745,343$ 560,200$ 92,726,172$
Redevelopment
Agency
PA No. 2
Redevelopment
Agency
PA No. 1
See Notes to Financial Statements 22
LA QUINTA REDEVELOPMENT AGENCY
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, 2011
Net change in fund balances - total governmental funds (13,340,871)$
Amounts reported for governmental activities in the Statement of Activities differs
from the amounts reported in the statement of activities because:
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Assets.47,631,001
Bond issuance costs is an expenditure in the governmental funds, but it is
deferred charges in the Statement of Net Assets:
Debt issuance costs on bonds issued 431,875
Amortization for current fiscal year (186,407)
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:
Current year original issuance premium on bonds issued 395,047
Amortization for current fiscal year (36,803)
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities the cost of those assets is capitalized and allocated
over their estimated useful lives through depreciation expense:
Capital outlay expenditures 4,668
Sale of capital assets (3,688,222)
Transfer of capital assets to the City (59,061,958)
Depreciation (83,251)
Proceeds of debt is revenue in the governmental funds, but these are additions
to the Statement of Net Assets.(34,850,000)
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.3,040,580
Contributions in excess to the required contribution to PERS are expenditures
in the governmental funds, however in the Statement of Activity only the
current contribution is an expense.(6,944)
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 (3,882,145)
Prior year accrual of interest due on bonds 3,933,769
Change in net assets of governmental activities (59,699,661)$
See Notes to Financial Statements 23
LA QUINTA REDEVELOPMENT AGENCY
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,682,337$ 9,682,337$ 9,682,337$ -$
Resources (Inflows):
Taxes and Assessments:
Tax increment 9,912,200 8,802,408 8,798,118 (4,290)
Use of Money and Property:
Interest income 46,800 46,800 42,092 (4,708)
Other revenue:
Miscellaneous revenues - - 780 780
Loan repayments - 23,029 53,377 30,348
Transfers from other funds - 40,000 - (40,000)
Proceeds from sale of capital asset 150,000 243,222 243,222 -
Amounts Available for Appropriation 19,791,337 18,837,796 18,819,926 (17,870)
Charges to Appropriation (Outflow):
Current:
Planning and development:
Real estate acquisitions - - 678,600 (678,600)
Administrative costs 1,071,265 1,071,265 382,103 689,162
Professional services 250,440 250,440 907,077 (656,637)
Acquisition cost 1,350,000 51,624 23,383 28,241
Rehabilitation costs 470,558 (470,558)
Subsidy to low and moderate housing - 466,000 324,940 141,060
Capital Outlay:
Project improvement costs - - 320,045 (320,045)
Transfer to other funds 4,631,684 8,205,277 5,220,026 2,985,251
Total Charges to Appropriations 7,303,389 10,044,606 8,326,732 1,717,874
Budgetary Fund Balance, June 30 12,487,948$ 8,793,190$ 10,493,194$ 1,700,004$
See Notes to Financial Statements 24
LA QUINTA REDEVELOPMENT AGENCY
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO. 2
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 21,825,320$ 21,825,320$ 21,825,320$ -$
Resources (Inflows):
Taxes and Assessments:
Tax increment 5,573,400 4,800,480 4,837,259 36,779
Use of Money and Property:
Interest income 56,900 54,200 143,643 89,443
Rental income 665,700 - - -
Other revenue:
Loan repayments - 8,719 8,719 -
Amounts Available for Appropriation 28,121,320 26,688,719 26,814,941 126,222
Charges to Appropriation (Outflow):
Current:
Planning and development:
Administrative costs 628,134 625,099 225,496 399,603
Professional services 354,700 512,000 765,192 (253,192)
Acquisition cost 450,000 450,000 - 450,000
Subsidy to low and moderate
housing 432,300 435,335 12,068 423,267
Capital Outlay:
Project improvement costs - - 409,734 (409,734)
Debt Service:
Interest expense 200,443 200,443 - 200,443
Long-term debt repayments 39,313 39,313 - 39,313
Transfer to other funds 1,951,993 12,785,865 2,461,105 10,324,760
Total Charges to Appropriations 4,056,883 15,048,055 3,873,595 11,174,460
Budgetary Fund Balance, June 30 24,064,437$ 11,640,664$ 22,941,346$ 11,300,682$
See Notes to Financial Statements 25
LA QUINTA REDEVELOPMENT AGENCY
BUDGETARY COMPARISON STATEMENT
HOUSING AUTHORITY PA NO. 1
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,414)$ (1,414)$ (1,414)$ -$
Resources (Inflows):
Use of Money and Property:
Interest income - - 3,744 3,744
Rental income 216,000 216,000 248,196 32,196
Sale of real estate - 120,628 120,628 -
Other revenue:
Miscellaneous revenues - - 1,302 1,302
Transfers from other funds 167,075 979,075 781,094 (197,981)
Amounts Available for Appropriation 381,661 1,314,289 1,153,550 (160,739)
Charges to Appropriation (Outflow):
Current:
Planning and development:
Administrative costs 6,600 6,850 1,939 4,911
Professional services 22,000 39,000 1,139 37,861
Operation of acquired property 350,000 350,000 221,503 128,497
Debt Service:-
Interest expense - - 11 (11)
Transfer to other funds - 40,000 - 40,000
Total Charges to Appropriations 378,600 435,850 224,592 211,258
Budgetary Fund Balance, June 30 3,061$ 878,439$ 928,958$ 50,519$
See Notes to Financial Statements 26
LA QUINTA REDEVELOPMENT AGENCY
BUDGETARY COMPARISON STATEMENT
HOUSING AUTHORITY PA NO. 2
YEAR ENDED JUNE 30, 2011
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,377)$ (1,377)$ (1,377)$ -$
Resources (Inflows):
Use of Money and Property:
Interest income - 3,600 1,046 (2,554)
Rental income - 661,500 665,113 3,613
Other revenue:
Miscellaneous revenues - 4,200 3,185 (1,015)
Transfers from other funds 25,675 534,787 509,112 (25,675)
Amounts Available for Appropriation 24,298 1,202,710 1,177,079 (25,631)
Charges to Appropriation (Outflow):
Current:
Planning and development:
Administrative costs 4,000 4,000 1,800 2,200
Professional services 15,000 15,000 1,139 13,861
Operation of acquired property 4,500 433,800 315,972 117,828
Interest expense - 200,443 200,455 (12)
Long-term debt repayments - 39,313 39,313 -
Total Charges to Appropriations 23,500 692,556 558,679 133,877
Budgetary Fund Balance, June 30 798$ 510,154$ 618,400$ 108,246$
See Notes to Financial Statements 27
THIS PAGE INTENTIONALLY LEFT BLANK
28
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies
a. Organization and Tax Increment Financing
The La Quinta Redevelopment Agency (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
La Quinta Housing Authority
The La Quinta Housing Authority (Authority) was established pursuant to California
Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on
September 15, 2009. The purpose of the Authority is to provide safe and sanitary
housing opportunities for La Quinta residents. Although the Authority is legally separate, it
is reported as if it were part of the Agency because the Agency’s governing board also
serves on the governing board for the Authority. Separate financial statements of the
Authority are not prepared.
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
29
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
repayment of any indebtedness incurred in financing or refinancing a redevelopment
project. Redevelopment agencies themselves have no authority to levy property taxes.
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 it’s discreetly presented
component units. The 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
expenditures. 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.
30
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
Fund Financial Statements
The underlying accounting system of the Agency is organized and operated on the basis
of separate funds, each of which is consider ed to be a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing accounts
that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses,
as appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by which
spending activities are controlled.
Fund financial statements for the 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 60 day
availability period.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods or
services are provided). Locally imposed 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
31
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
governmental fund type revenues represented by noncurrent receivables are deferred
until they become current receivables. Noncurrent portions of other long-term receivables
are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for governmental
fund types excludes amounts represented by noncurrent liabilities. Since they do not
affect net current assets, such long-term amounts are not recognized as governmental
fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that
resources were expended, rather than as fund assets. The proceeds of long-term debt
are recorded as 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 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.
Special Revenue, Housing Authority P.A. No. 1 and No. 2 Funds – To account for
activities of the Housing Authority, including the operation of the Authority’s housing units.
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 and 2011 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.
32
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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.
f. Fund Balance
The Agency implemented Governmental Accounting Standards Board Statement 54,
“Fund Balance Reporting and Governmental Fund Type Definitions”, for the year ended
June 30, 2011. As a result, the Agency now reports the following classifications of fund
balance:
Nonspendable Fund Balance - Includes amounts that cannot be spent because they
are either (a) not in spendable form or (b) legally or contractually required to be
maintained intact.
Restricted Fund Balance - Includes amounts that have constraints on the use of
resources by being externally imposed, imposed by law through constitution, or
through enabling legislation.
Assigned Fund Balance – Includes amounts that are constrained by the Agency’s
intent to be used for a specific purpose.
Unassigned Fund Balance - The residual classification which includes all spendable
amounts not contained in other classifications.
The Agency’s Board authorizes assigned amounts for specific purposes pursuant to the
policy-making powers granted through a resolution. When an expenditure is incurred for
purposes for which both restricted and unrestricted fund balance is available, the Agency
considers restricted amounts to be used first, then unrestricted. When an expenditure is
incurred for purposes for which amounts in any of the unrestricted fund balance
classifications could be used, they are considered to be spent in the order as follows:
committed, assigned and then unassigned.
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.
33
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 2: Stewardship, Compliance and Accountability (Continued)
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. 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:
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.
Note 4: Notes Receivable
In September 1994, the Agency sold certain real property to LINC Housing for $2,112,847.
The property was used to construct single-family homes and rental units to increase the City's
supply of low and moderate income housing. The note bears interest at 6% per annum and is
due in full on June 15, 2029. The balance at June 30, 2011 including matured, unpaid interest
of $1,930,492 is $3,965,880.
In July 2010, the Agency entered into an Owner Participation Agreement (OPA) with an Garff
Properties-La Quinta, LLC (“Garff”) that provides for the Agency to provide a rehabilitation
loan to Garff of up to $2,300,000 for the construction of a new auto dealership facility and
rehabilitation of an existing dealership facility. In connection with the OPA, Garff has
executed a promissory note which is secured by a deed of trust, and an operating covenant.
The loan will be repaid by crediting future sales and property tax increment taxes generated
on the site until the cumulative taxes collected equals the loan amount. At that time, the note
will be cancelled and the operating covenant will terminate. If, after ten years of operation, a
shortfall exists between the revenues collected and the outstanding loan amount, the note will
be cancelled and the operating covenant will terminate. Further, if at any time through no fault
of the dealership certain future events outside of the dealership control occur the note will be
cancelled and the operating covenant will terminate. The balance at June 30, 2011 is
$2,300,000.
In February 2011, the Agency entered into Disposition and Development Agreement with
Coral Mountain Partners L.P. (“Coral Mountain”) to fund up to $29,000,000 for the
construction of a low and moderate income apartment complex with an estimated completion
date of the apartment complex of March 2015. The Agency’s $29,000,000 loan is evidenced
by a Promissory Note executed by Coral Mountain (“Note”). Interest on the outstanding note
amount will bear simple interest of 1%. Principal and interest will be repaid on or before May
1st of each year from annual residual receipts as defined in the Note once the project is
completed and may be repaid early if the property is refinanced, or if the property is
transferred to another entity. As of June 30, 2011, the outstanding principal portion on the
Note is $640,090 and the outstanding interest portion is $1,396.
Other notes receivable totaled $46,226 at June 30, 2011.
Cash and investments pooled with the City 44,037,780$
Cash and investments with trustees 42,603,713
86,641,493$
34
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Due from Other Governments
The 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 Park, La Quinta Library and the
Highway 111 Median Improvement Project. 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, 2011, outstanding Project
Area No. 1 advances were $3,284,621 and Project Area No. 2 advances were $1,280,239.
Note 6: Capital Assets
Capital asset activity for the year ended June 30, 2011, was as follows:
*Note: Deletions include transfer of capital assets to the City of La Quinta.
Depreciation expense was charged to the following functions of the primary government:
Governmental Activities:
General government - $83,251
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 Agency’s primary source of revenue comes from property taxes. Property taxes allocated
to the Agency are computed in the following manner:
Balances at
July 1, 2010 Additions Deletions*
Balances at
June 30, 2011
Depreciable assets:
Buildings $ 4,010,888 $ - $ 4,010,888 $ -
Total cost of depreciable assets 4,010,888 - 4,010,888 -
Less accumulated depreciation:
Buildings (406,324) (83,251) (489,575) -
Net depreciable assets 3,604,564 (83,251) 3,521,313 -
Capital assets not depreciated:
Land 69,855,143 4,668 59,228,867 10,630,944
Capital assets, net $ 73,459,707 $ (78,583) $ 62,750,180 $ 10,630,944
35
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 7: Property Taxes (Continued)
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, 2011 is $4,775,000.
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, 2011 is $15,760,000.
36
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
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, 2011 is $5,555,000.
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, 2011 is $48,000,000.
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, 2011 is $35,085,000.
37
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
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, 2011 is $23,305,000.
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.
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, 2011 is $81,150,000.
2011 Subordinate Taxable Tax Allocation Bonds
On June 6, 2011, the Agency issued subordinate taxable tax allocation bonds in the amount
of $6,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project
Area No. 2. The 2001 tax allocation bonds were issued at a discount of $86,207 and
issuance costs of $108,500.
38
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
The bonds consist of $190,000 of term bonds that accrue interest at 5.375% and mature on
September 1, 2016, $280,000 of term bonds that accrue interest at 7.125% and mature on
September 1, 2021, $380,000 of term bonds that accrue interest at 7.600% and mature on
September 1, 2026, and $5,150,000 of term bonds that accrue interest at 8.150% and mature
on September 1, 2031. The interest and principal on the bonds are payable from pledged tax
increment revenues.
A portion of the proceeds were used to obtain fund the bond reserve requirement. The
principal balance of outstanding bonds at June 30, 2011 is $6,000,000.
2011 Series A Local Agency Subordinate Taxable Revenue Bonds
On June 9, 2011, the La Quinta Financing Authority issued revenue bonds in the amount of
$28,850,000 to finance projects benefiting low and moderate income housing in La Quinta
Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. The
2011 local agency subordinate taxable revenue bonds were issued with issuance costs of
$323,375 and a discount of $308,839.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
September 1, 2011. Interest payments range from 3.750% to 8.185% per annum. The
interest and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2026, September 1, 2031 and September 1, 2036, are
subject to mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2022, September 1, 2027, and September 1, 2032, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to fund the bond reserve requirement. There are certain
limitations regarding the issuance of parity debt as further described in the official statement.
The principal balance of outstanding bonds at June 30, 2011 is $28,850,000.
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, 2011 is
$1,000,000.
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
39
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
$834,076 for a total amount of $15,284,042. Tax increment payments outstanding at
June 30, 2011 totaled $1,255,242. 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 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, 2011 is $1,503,433.
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, 2011 is $729,383.
Advances from the City of La Quinta
The City of La Quinta advances money to the Agency to cover operating and capital shortfalls.
As of June 30, 2011, the amount due to the General Fund from Project Area No. 1 and
Project Area No. 2 were $0.
40
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
The following is a schedule of changes in long-term debt of the Agency for the fiscal year
ended June 30, 2011:
Balance Balance Due Within
July 1, 2010 Additions Repayments June 30, 2011 One Year
Redevelopment Agency PA No. 1
City Loans - Principal 22,000,000$ -$ 22,000,000$ -$ -$
Coachella Valley USD Pass-Through Payable 2,072,964 - 817,722 1,255,242 834,076
1994 Tax Allocation Bonds 6,920,000 - 2,145,000 4,775,000 2,305,000
1998 TAB Project Area #1 15,760,000 - - 15,760,000 -
2001 Tax Allocation Bonds 48,000,000 - - 48,000,000 -
2002 Tax Allocation Bonds 35,765,000 - 680,000 35,085,000 705,000
2003 Tax Allocation Bonds 23,810,000 - 505,000 23,305,000 530,000
2004 Series A Local Agency Revenue Bonds 16,000,857 - 335,820 15,665,037 348,365
Total 170,328,821 - 26,483,542 143,845,279 4,722,441
Redevelopment Agency PA No. 2
City Loans - Principal 19,378,966 - 19,378,966 - -
Provident Loan 1,530,958 - 27,525 1,503,433 29,918
US Department of Agriculture 741,171 - 11,788 729,383 12,915
Notes - Due to the County of Riverside 1,200,000 - 200,000 1,000,000 250,000
1998 TAB Project Area #2 5,680,000 - 125,000 5,555,000 130,000
2011A Subordinate TAB Bonds - 6,000,000 - 6,000,000 -
2004 Series A Local Agency Revenue Bonds 4,324,364 - 90,828 4,233,536 94,221
Taxable Revenue Bonds 2011 Series A - 28,850,000 - 28,850,000 -
Total 32,855,459 34,850,000 19,834,107 47,871,352 517,054
Unallocated Between Project Areas
2004 Series A Local Agency Revenue Bonds 62,564,779 - 1,313,352 61,251,427 1,362,414
Total 62,564,779 - 1,313,352 61,251,427 1,362,414
Total - All Project Areas 265,749,059$ 34,850,000$ 47,631,001$ 252,968,058$ 6,601,909$
Adjustments:
Unamortized net original issue (discount) or premium (1,127,045)
Net Long-term Debt 251,841,013$
41
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
The following schedule illustrates the debt service requirements to maturity for the debt
outstanding as of June 30, 2011:
Principal Interest Principal Interest Principal Interest
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 - 2015 - - 690,000 767,520 150,000 264,956
2015 - 2016 - - 725,000 730,730 160,000 257,013
2016 - 2021 - - 4,235,000 3,031,210 930,000 1,149,525
2021 - 2026 - - 5,460,000 1,777,100 1,205,000 872,156
2026 - 2031 - - 3,995,000 318,630 1,555,000 511,744
2031 - 2036 - - - - 1,140,000 91,875
Totals 4,775,000$ 354,598$ 15,760,000$ 9,066,720$ 5,555,000$ 3,986,342$
Principal Interest Principal Interest Principal Interest
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 - 2015 1,645,000 2,311,345 735,000 1,659,656 620,000 1,356,736
2015 - 2016 1,730,000 2,226,970 770,000 1,622,031 660,000 1,316,800
2016 - 2021 10,025,000 9,714,225 4,485,000 7,475,031 3,970,000 5,891,984
2021 - 2026 12,805,000 6,854,645 5,730,000 6,198,303 5,390,000 4,438,109
2026 - 2031 16,425,000 3,147,848 10,380,000 4,379,313 7,340,000 2,414,034
2031 - 2036 3,805,000 97,028 10,840,000 662,406 3,645,000 238,441
Totals 48,000,000$ 31,605,096$ 35,085,000$ 27,176,806$ 23,305,000$ 19,924,955$
Principal Interest Principal Interest Principal Interest
2011 - 2012 1,805,000$ 4,099,719$ 250,000$ -$ 834,076$ -$
2012 - 2013 1,890,000 4,016,581 250,000 - 421,166 -
2013 - 2014 1,975,000 3,924,681 250,000 - - -
2014 - 2015 2,075,000 3,823,431 250,000 - - -
2015 - 2016 2,175,000 3,714,463 - - - -
2016 - 2021 12,715,000 16,686,250 - - - -
2021 - 2026 16,430,000 12,885,194 - - - -
2026 - 2031 21,055,000 8,149,884 - - - -
2031 - 2036 21,030,000 2,222,969 - - - -
Totals 81,150,000$ 59,523,172$ 1,000,000$ -$ 1,255,242$ -$
2004 Series A Local Agency
Revenue Bonds
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
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
42
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Long-Term Liabilities (Continued)
Principal Interest Principal Interest Principal Interest
2011 - 2012 12,915$ 72,367$ 29,918$ 124,558$ -$ 488,648$
2012 - 2013 14,267 71,014 32,515 121,959 - 2,171,767
2013 - 2014 15,761 69,520 35,341 119,134 520,000 2,171,767
2014 - 2015 17,412 67,870 38,411 116,064 540,000 2,152,267
2015 - 2016 19,235 66,047 41,748 112,726 565,000 2,127,967
2016 - 2021 130,952 295,458 269,873 502,499 3,340,000 10,117,192
2021 - 2026 215,456 210,953 1,055,627 14,670 4,685,000 8,774,045
2026 - 2031 303,385 73,179 - - 6,780,000 6,681,460
2031 - 2036 - - - - 9,930,000 3,530,174
2036 - 2041 - - - - 2,490,000 200,943
Totals 729,383$ 926,408$ 1,503,433$ 1,111,610$ 28,850,000$ 38,416,230$
USDA Rural Development Provident Bank Loan
2011 Series A Local Agency
Subordinate Taxable
Revenue Bonds
Principal Interest
2011 - 2012 -$ 107,723$
2012 - 2013 35,000 478,768
2013 - 2014 35,000 476,886
2014 - 2015 40,000 475,005
2015 - 2016 40,000 472,855
2016 - 2021 255,000 2,323,194
2021 - 2026 355,000 2,216,496
2026 - 2031 515,000 2,056,974
2031 - 2036 1,635,000 1,776,702
2036 - 2041 3,090,000 654,033
Totals 6,000,000$ 11,038,636$
2011 Subordinate Taxable Tax
Allocation Bonds
Note 9: Pledge Tax Revenues
As previously discussed, 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) that it receives. These bonds were to provide
financing for various capital projects and accomplish Low and Moderate Income Housing
projects. 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 $449,572,555 with annual debt service requirements as
indicated above. For the current year, the total tax increment revenue, net of pass through
payments, recognized by the City was $32,569,795 and the debt service obligation on the
bonds was $16,604,838.
43
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 10: Transfers In and Out
The following transfers were made during the year ended June 30, 2011:
a) $4,438,932 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 and 1994 Tax
Allocation Bonds debt services.
b) $1,951,993 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) $781,094 was transferred from the Low/Moderate Income Housing PA No. 1 Fund to
the Housing Authority PA No. 1 to pay for rental subsidies associated with the La
Quinta Cove Homes.
d) $509,112 was transferred from the Low/Moderate Income Housing PA No. 2 Fund to
the Housing Authority PA No. 2 to pay for rental subsidies associated with the
Washington Street Apartments.
e) $15,039,194 was transferred from the Redevelopment Agency Capital Project Area
No. 1 to the Redevelopment Agency Debt Service PA No. 1 Fund to repay its part of
the City advances.
f) $4,303,660 was transferred from the Redevelopment Agency Capital Project Area
No. 2 to the Redevelopment Agency Debt Service PA No. 2 Fund to repay its part of
the City advances and to fund the SERAF payment.
PA No. 1 PA No. 2
Housing
Authority PA
No. 1
Housing
Authority PA
No. 2 Total
Transfers Out:
Capital Project
Redevelopment Agency - PA No. 1 15,039,194$ -$ -$ -$ 15,039,194$
Redevelopment Agency - PA No. 2 - 4,303,660 - - 4,303,660
Special Revenue:
Low/Moderate Income Housing PA No. 1 4,438,932 - 781,094 - 5,220,026
Low/Moderate Income Housing PA No. 2 - 1,951,993 - 509,112 2,461,105
Total 19,478,126$ 6,255,653$ 781,094$ 509,112$ 27,023,985$
Debt Service
Transfers in
Special Revenue
44
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 11: Due To/From Other Funds
The following interfund receivables and payables were made during the year ended
June 30, 2011:
All amounts were for short term borrowing to cover temporary cash shortfall.
Note 12: Advances To/From other funds
The advance was for operating costs.
Note 13: Insurance
The 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
Agency. Additional information as to coverage and self-insured retentions can be obtained by
contacting the City.
Note 14: Net Pension Asset
In September 2009, the City contributed funds to CalPERS to payoff the side fund for the Past
Service Cost in order to reduce future contribution rates. This amount will be amortized over
the next twelve years. The Agency’s portion of the payoff was $107,336. The contribution
requirements of plan member and the City are established and may be amended by
CalPERS. Additional information on the plan can be obtained from the annual report of the
City. The balance of the net pension asset as of June 30, 2011 is $100,393.
Note 15: Transactions with the State of California
a. SERAF Shift for fiscal year 2010-2011
On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal
years 2009-2010 and 2010-2011 to be deposited into the County “Supplemental”
Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed
to meet the State’s Prop 98 obligations to schools. The California Redevelopment
Association (CRA) and its member agencies filed a legal action in an attempt to stop
Due From Other Funds Due To Other Funds Amount
3,500$
24,760
637,754
Total 666,014$
Special Revenue Low/Mod PA
No. 1
Special Revenue Low/Mod PA
No. 2
Capital Projects
Redevelopment PA No. 1
Capital Projects – 2011 Low/Mod
Bond
Capital Projects Redevelopment
PA No. 2
Capital Projects – 2004 Low/Mod
Bond
Advances To Other Funds Advances From Other Funds Amount
Special Revenue Low/Mod PA
No. 1
Special Revenue Low/Mod PA
No. 2 4,328$
45
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 15: Transactions with the State of California (Continued)
these amounts from having to be paid; however, in May 2010 the Sacramento Superior
Court upheld the legislation.
The payment of the SERAF was due on May 10, 2011 for fiscal year 2010-2011 and it
was made in the amount of $4,855,193 using available resources.
Note 16: California Redevelopment Agency Uncertainty
On July 18, 2011, the California Redevelopm ent Association (“CRA”) and the League of
California Cities (“League”) filed a petition for writ of mandate with the Califo rnia Supreme
Court, requesting the Court to declare unconstitutional two bills that were passed as part of
the 2011-12 State Budget, AB1X 26 and 27. AB1X 26 dissolves redevelopment agencies
effective October 1, 2011. AB1X 27, give redevelopment agencies an option to avoid
dissolution if it commits to making defined payments for the benefit of the State, school
districts and certain special districts. In 2011-12, these payments amount to a state-wide total
of $1.7 billion. In 2012-13 and subsequent years, the payments total $400 million, annually.
Each city or county’s share of these payments is determined based on its proportionate share
of state-wide tax increment.
CRA and the League contend that AB1X 26 and 27 are unconstitutional because they violate
Proposition 22 which was passed by the voters in November, 2010. The effect of the
legislation is to achieve a possible unconstitutional result, the use of redevelopment agencies’
tax increment funds to benefit the State and other units of local government, by way of
threatening of the dissolution of redevelopment agencies.
Therefore, the CRA and the League have requested that the Court issue a stay, suspending
the effectiveness of AB1X 26 and 27 until the Court can rule on its constitutionality. CRA and
the League also asked the Court to expedite the briefing and hearing of the case so that a
decision can be rendered by the Court before January 15, 2012, when the first payments are
due. On August 11th, the California Supreme Court agreed to hear the case and granted a
partial stay which was subsequently clarified.
As of the time of the issuance of this report, the outcome of AB1X 26 and 27 upon the Agency
is unknown and consequently the status and even future existence of the Agency is uncertain
as such. In accordance with AB1X 27, the Agency has passed a resolution of intent to
continue and will be required to make a payment to the State by January 15, 2012 to avoid
dissolution. The Department of Finance issued their estimated payment amounts and the
Agency filed an appeal regarding the calculation. The estimated payment amount based on
the revised calculation is $17,018,721.
Note 17: Subsequent Event
In June 2011, the Agency entered into an Owner Participation Agreement (OPA) with an
autodealer, Mega Dealer, LLC (“Torre Nissan”) that provides for the Agency to provide a
rehabilitation loan to Torre Nissan of up to $1,500,000 for the remodeling of the existing
dealership and an expansion of the dealership facility to accommodate a new line of electric
and commercial vehicles. The new expansion will also include service and parts sales
facilitates. In connection with the OPA, Torre Nissan has executed a promissory note, which
is secured by a subordinated deed of trust and an operating covenant. Interest on the note
46
LA QUINTA REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 17: Subsequent Event (Continued)
shall accrue on the outstanding principal balance at the 1-year LIBOR Rate, adjusted annually
on each June 30th. The loan will be repaid by crediting future sales and property tax
increment taxes generated on the site until the cumulative taxes collected equals the
outstanding loan amount. At that time, the note will be cancelled and the operating covenant
will terminate. If at any time during the term of the note Nissan Motor Company ceases to
exist, the note will be cancelled and the operating covenant will terminate. At the end of the
ten-year operating covenant, the operating covenant will terminate and the note will be
cancelled, and any outstanding loan balance will be forgiven. As of June 30, 2011 no
payments have been made under this agreement.
47
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2011
Capital Capital Debt Capital
Projects Projects Service Projects
2004 2011
Low/Mod Low/Mod Tax
Bond Bond Increment Project
ASSETS
Cash and investments -$ -$ 1,132,207$ 9,943,802$
Cash and investments with trustee 3,331,915 25,535,470 - 9,204,891
Receivables:
Tax increment - - 27,485 -
Accounts - 3,500 - -
Interest - - 379 8,549
Loans - - - -
Prepaid costs - - - -
Due from capital projects funds - - - 637,754
Due from low and moderate
housing funds - - - -
Due from City - - - 3,284,621
Deposits with others - - - -
Advances to other funds - - - -
Total Assets 3,331,915$ 25,538,970$ 1,160,071$ 23,079,617$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ 53,296$
Deposits from others - - - -
Due to capital projects funds - - - -
Due to low and moderate
housing funds 24,760 3,500 - -
Due to other governments - - 414,728 -
Deferred revenue - - - -
Advances from other funds - - - -
Total Liabilities 24,760 3,500 414,728 53,296
Fund Balances:
Nonspendable:
Prepaid costs - - - -
Long-term receivables and deposits - - - -
Restricted for:
Debt service - - 745,343 -
Low and moderate income housing 3,307,155 25,535,470 - -
Community development - - - 23,026,321
Total Fund Balances 3,307,155 25,535,470 745,343 23,026,321
Total Liabilities and
Fund Balances 3,331,915$ 25,538,970$ 1,160,071$ 23,079,617$
Redevelopment Agency
PA No. 1
48
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2011
ASSETS
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Prepaid costs
Due from capital projects funds
Due from low and moderate
housing funds
Due from City
Deposits with others
Advances to other funds
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits from others
Due to capital projects funds
Due to low and moderate
housing funds
Due to other governments
Deferred revenue
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Long-term receivables and deposits
Restricted for:
Debt service
Low and moderate income housing
Community development
Total Fund Balances
Total Liabilities and
Fund Balances
(Continued)
Special Special Debt Capital
Revenue Revenue Service Projects
Low and
Housing Moderate Tax
Authority Housing Increment Project
934,767$ 8,474,291$ 15,101$ -$
- - 600,000 3,931,437
- 6,871 5,112 -
13,542 - - 24,500
616 5,414 - 307
- 4,012,106 - 2,300,000
- - - -
- - - -
- 3,500 - -
- - - 1,280,239
- - - -
- 4,328 - -
948,925$ 12,506,510$ 620,213$ 7,536,483$
-$ 82,824$ -$ 28,944$
19,967 - - -
- - - 637,754
- - - -
- - 60,013 -
- 1,930,492 - 2,300,000
- - - -
19,967 2,013,316 60,013 2,966,698
- - - -
- 2,081,614 - -
- - 560,200 -
928,958 8,411,580 - -
- - - 4,569,785
928,958 10,493,194 560,200 4,569,785
948,925$ 12,506,510$ 620,213$ 7,536,483$
Redevelopment Agency
PA No. 1
Redevelopment Agency
PA No. 2
49
LA QUINTA REDEVELOPMENT AGENCY
COMBINING PROJECT AREA BALANCE SHEET
ALL GOVERNMENTAL FUNDS
JUNE 30, 2011
ASSETS
Cash and investments
Cash and investments with trustee
Receivables:
Tax increment
Accounts
Interest
Loans
Prepaid costs
Due from capital projects funds
Due from low and moderate
housing funds
Due from City
Deposits with others
Advances to other funds
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Deposits from others
Due to capital projects funds
Due to low and moderate
housing funds
Due to other governments
Deferred revenue
Advances from other funds
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Long-term receivables and deposits
Restricted for:
Debt service
Low and moderate income housing
Community development
Total Fund Balances
Total Liabilities and
Fund Balances
Special Special
Revenue Revenue
Low and Debt Capital Special
Housing Moderate Service Projects Revenue
Authority Housing Funds Funds Funds
597,765$ 22,939,847$ 1,147,308$ 9,943,802$ 32,946,670$
- - 600,000 42,003,713 -
- 1,278 32,597 - 8,149
37,082 - - 28,000 50,624
- 15,926 379 8,856 21,956
- 641,486 - 2,300,000 4,653,592
10,563 - - - 10,563
- - - 637,754 -
- 24,760 - - 28,260
- - - 4,564,860 -
6,000 - - - 6,000
- - - - 4,328
651,410$ 23,623,297$ 1,780,284$ 59,486,985$ 37,730,142$
2,263$ 40,465$ -$ 82,240$ 125,552$
26,419 - - - 46,386
- - - 637,754 -
- - - 28,260 -
- - 474,741 - -
- 641,486 - 2,300,000 2,571,978
4,328 - - - 4,328
33,010 681,951 474,741 3,048,254 2,748,244
10,563 - - - 10,563
6,000 - - - 2,087,614
- - 1,305,543 - -
601,837 22,941,346 - 28,842,625 32,883,721
- - - 27,596,106 -
618,400 22,941,346 1,305,543 56,438,731 34,981,898
651,410$ 23,623,297$ 1,780,284$ 59,486,985$ 37,730,142$
T O T A L S
Redevelopment Agency
PA No. 2
50
THIS PAGE INTENTIONALLY LEFT BLANK
51
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
LA QUINTA REDEVELOPMENT AGENCY
Capital Capital Debt Capital
Projects Projects Service Projects
2004 2011
Low/Mod Low/Mod Tax
Bond Bond Increment Project
Revenues:
Taxes and Assessments:
Tax increment -$ -$ 35,192,471$ -$
Use of Money and Property:
Interest income 6,429 12,065 12,802 170,584
Rental income ----
Sale of real estate - - - 4,875,000
Other revenue:
Miscellaneous revenues - - - 305,455
Loan repayments ----
Total Revenues 6,429 12,065 35,205,273 5,351,039
Expenditures:
Current:
Planning and Development:
Administrative costs - - 386,145 169,567
Professional services - - - 741,732
Real estate acquisitions - - - 8,199,012
Acquisition cost - - - 22,184
Operation of acquired property ----
Relocation costs - - - 1,257
Site clearance costs - - - 10,743
Rehabilitation costs ----
Subsidy to low and moderate
housing ----
Capital Outlay:
Project improvement costs 125,124 -- 2,018,681
Debt Service:
Debt issuance costs - 632,214 --
Interest expense -- 10,885,440 -
Long-term debt repayments -- 27,313,522 -
Total Expenditures 125,124 632,214 38,585,107 11,163,176
Excess of Revenues over
(under) Expenditures (118,695) (620,149) (3,379,834) (5,812,137)
Other Financing Sources (Uses)
Transfers in -- 19,478,126 -
Transfers out --- (15,039,194)
Long-term debt issued - 28,850,000 --
Pass through agreement payments -- (19,309,866)-
Proceeds from sale of capital assets ----
Gain (Loss) on sale of land held for resale ----
Payment to Supplemental Educational
Revenue Augmentation Fund -- (4,855,193)-
Contributions to other agencies - (2,694,381)--
Total Other Financing Sources
(Uses)- 26,155,619 (4,686,933) (15,039,194)
Excess of Revenues and
Other Sources over (under)
Expenditures and Other Uses (118,695) 25,535,470 (8,066,767) (20,851,331)
Fund Balances
Beginning of Year 3,425,850 - 8,812,110 43,877,652
End of Year 3,307,155$25,535,470$745,343$23,026,321$
Redevelopment Agency
PA No. 1
52
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
LA QUINTA REDEVELOPMENT AGENCY
Revenues:
Taxes and Assessments:
Tax increment
Use of Money and Property:
Interest income
Rental income
Sale of real estate
Other revenue:
Miscellaneous revenues
Loan repayments
Total Revenues
Expenditures:
Current:
Planning and Development:
Administrative costs
Professional services
Real estate acquisitions
Acquisition cost
Operation of acquired property
Relocation costs
Site clearance costs
Rehabilitation costs
Subsidy to low and moderate
housing
Capital Outlay:
Project improvement costs
Debt Service:
Debt issuance costs
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
Proceeds from sale of capital assets
Gain (Loss) on sale of land held for resale
Payment to Supplemental Educational
Revenue Augmentation Fund
Contributions to other agencies
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
(Continued)
Special Special Debt Capital
Revenue Revenue Service Projects
Low and
Housing Moderate Tax
Authority Housing Increment Project
-$8,798,118$19,349,036$ -$
3,744 42,092 47,887 20,925
248,196 ---
--- -
1,302 780 --
-53,377 --
253,242 8,894,367 19,396,923 20,925
1,939 382,103 215,555 50,632
1,139 907,077 - 231,973
- 678,600 --
-23,383 --
221,503 ---
--- -
--- -
- 470,558 - 2,300,000
- 324,940 --
- 320,045 - 1,797,569
--- 194,707
11 - 2,765,596 -
-- 20,278,166 -
224,592 3,106,706 23,259,317 4,574,881
28,650 5,787,661 (3,862,394) (4,553,956)
781,094 - 6,255,653 -
- (5,220,026)- (4,303,660)
--- 6,000,000
-- (16,297,223)-
- 243,222 - 3,445,000
120,628 ---
--- -
--- -
901,722 (4,976,804) (10,041,570) 5,141,340
930,372 810,857 (13,903,964) 587,384
(1,414) 9,682,337 14,464,164 3,982,401
928,958$10,493,194$560,200$4,569,785$
Redevelopment Agenc
PA No. 1
Redevelopment Agency
PA No. 2
53
COMBINING PROJECT AREA STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
LA QUINTA REDEVELOPMENT AGENCY
Revenues:
Taxes and Assessments:
Tax increment
Use of Money and Property:
Interest income
Rental income
Sale of real estate
Other revenue:
Miscellaneous revenues
Loan repayments
Total Revenues
Expenditures:
Current:
Planning and Development:
Administrative costs
Professional services
Real estate acquisitions
Acquisition cost
Operation of acquired property
Relocation costs
Site clearance costs
Rehabilitation costs
Subsidy to low and moderate
housing
Capital Outlay:
Project improvement costs
Debt Service:
Debt issuance costs
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
Proceeds from sale of capital assets
Gain (Loss) on sale of land held for resale
Payment to Supplemental Educational
Revenue Augmentation Fund
Contributions to other agencies
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
Special Special
Revenue Revenue
Low and Debt Capital Special
Housing Moderate Service Projects Revenue
Authority Housing Funds Funds Funds
-$4,837,259$54,541,507$ -$ 13,635,377$
1,046 143,643 60,689 210,003 190,525
665,113 --- 913,309
--- 4,875,000 -
3,185 -- 305,455 5,267
- 8,719 -- 62,096
669,344 4,989,621 54,602,196 5,390,458 14,806,574
1,800 225,496 601,700 220,199 611,338
1,139 765,192 - 973,705 1,674,547
--- 8,199,012 678,600
--- 22,184 23,383
315,972 --- 537,475
--- 1,257 -
--- 10,743 -
--- 2,300,000 470,558
- 12,068 -- 337,008
- 409,734 - 3,941,374 729,779
--- 826,921 -
200,455 - 13,651,036 - 200,466
39,313 - 47,591,688 - 39,313
558,679 1,412,490 61,844,424 16,495,395 5,302,467
110,665 3,577,131 (7,242,228) (11,104,937) 9,504,107
509,112 - 25,733,779 - 1,290,206
- (2,461,105)- (19,342,854) (7,681,131)
--- 34,850,000 -
-- (35,607,089)--
--- 3,445,000 243,222
---- 120,628
-- (4,855,193)--
--- (2,694,381)-
509,112 (2,461,105) (14,728,503) 16,257,765 (6,027,075)
619,777 1,116,026 (21,970,731) 5,152,828 3,477,032
(1,377) 21,825,320 23,276,274 51,285,903 31,504,866
618,400$22,941,346$1,305,543$56,438,731$34,981,898$
T O T A L S
Redevelopment Agency
PA No. 2
54
LA QUINTA REDEVELOPMENT AGENCY
COMPUTATION OF LOW AND MODERATE
INCOME HOUSING FUNDS
EXCESS/SURPLUS
Low and Moderate Housing Funds Low and Moderate Housing Funds
All Project Areas All Project Areas
July 1, 2010 July 1, 2011
Opening Fund Balance 34,933,507$ 62,277,165$
Less Unavailable Amounts:
Unspent debt proceeds (Section 33334.12 (g)(3)(B)) (5,569,552)$ (28,867,385)$
Rehabilitation loans and advances (2,088,709) (2,081,614)
(7,658,261) (30,948,999)
Available Low and Moderate Income Housing Funds 27,275,246 31,328,166
Limitation (greater of $1,000,000 or four years set-aside)
Set-Aside for last four years:
2010 - 2011 - 13,635,337
2009 - 2010 14,820,242 14,820,242
2008 - 2009 15,825,773 15,825,773
2007 - 2008 16,641,016 16,641,016
2006 - 2007 15,701,666 -
Total 62,988,697$ 60,922,368$
Base Limitation 1,000,000$ 1,000,000$
Greater amount 62,988,697 60,922,368
Computed Excess/Surplus None None
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