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1995-1996 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)AV City of La Quinta, Ca/ifornia Comprehensive Annual Financial Report for the Year Ended June 30, 1996 CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 1996 Prepared by FINANCE DEPARTMENT JOHN M. FALCONER Director of Finance (This page intentionally left blank) CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1996 TABLE OF CONTENTS Exhibit Paye INTRODUCTORY SECTION: Letter of Transmittal i List of Principal Officials xvii Organizational Chart xix Certificate of Award for Outstanding Financial Reporting (CSMFO) xxi FINANCIAL SECTION: Independent Auditors' Report 1 General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups AA 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types BB 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types CC 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types DD 8 Combined Statement of Cash Flows - All Proprietary Fund Types EE 9 Notes to the Financial Statements 10 Supplemental Data: Special Revenue Funds: Combining Balance Sheet A-1 36 Combining Statement of Revenues, Expenditures and Changes in Fund Balances A-2 38 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1996 FABLE OF CONTENTS, (CONTINUED) State Gas Tax Fund: Exhibit Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-3 Community Service Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-4 Federal Assistance Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-5 Lighting and Landscape Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-6 Quimby Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-7 Village Parking Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-8 South Coast Air Quality Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-9 Urban Forestry Grant Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-10 Page 40 41 42 43 44 45 47 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1996 TABLE OF CONTENTS, (CONTINUED, Exhibit Low Income Housing Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-11 Low Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-12 Low/Moderate Bond - Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-13 Low/Moderate Bond - Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-14 Debt Service Funds: Combining Balance Sheet B-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-3 Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-4 Paye 48 49 50 51 54 55 57 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1996 TABLE OF CONTENTS, (CONTINUED) Exhibit Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-5 Capital Projects Funds: Combining Balance Sheet C-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 Assessment District 91-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-3 Assessment District 92-1 Fund: Page 58 62 64 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-4 65 Infrastructure Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-5 66 Capital Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-6 Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-7 67 68 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1996 TABLE OF CONTENTS, (CONTINUED) Exhibit Page Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-8 69 Agency Funds: Combining Balance Sheet - All Agency Funds D-1 72 Combining Statement of Changes in Assets and Liabilities - All Agency Funds D-2 74 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source E-1 78 Schedule of General Fixed Assets - By Function and Activity E-2 79 Schedule of Changes in General Fixed Assets - by Function and Activity E-3 80 Table No. Page STATISTICAL SECTION: General Governmental Expenditures by Function 1 82 General Governmental Revenue by Source 2 83 Property Tax Levies and Collections 3 84 Schedule of Net Taxable Value 4 85 Property Tax Rates - Direct and Overlapping Governments 5 86 Special Assessment Billings and Collections 6 87 Schedule of Direct and Overlapping Bonded Debt 7 88 Computation of Legal Debt Margin 8 89 Revenue Bond Coverage 9 90 Demographic Statistics 10 91 Property Value and Construction Activity 11 92 Principal Taxpayers 12 93 Major Employers 13 94 Schedule of Insurance in Force 14 95 Miscellaneous Statistical Data 15 96 (This page intentionally left blank) -�� ,ire `- y:ti c6d, 4 4a Qum& �7- - 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 FAX August 20, 1996 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California (619) 777-7000 (619) 777-7101 FY 1995-96 COiMPRL, HENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL We are pleased to present the 1996 Comprehensive Annual Financial Report ( CAFR) of the City of La Quinta to the City Council and the City Manager. This report includes financial statements of the: City of La Quinta; La Quinta Redevelopment Agency; and, La Quinta Financing Authority. Our independent auditors, Conrad & Associates have expressed their opinion as to the fairness of these financial statements. The completion of the independent audit is an important part of the total financial management program for the City of La Quinta. The information found in this report is provided by management to the Council and the public to assist those interested in understanding the fiscal condition of the City as of June 30, 1996. Responsibility for both the accuracy of the data, its completeness and its fairness of presentation, including all disclosures rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City of La Quinta. All disclosures necessary to enable this reader to gain an understanding of the government's financial activities have been included. Document Structure The CAFR is presented in three sections: Introductory; Financial; and, Statistical. 4 MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 _ Honorable Mayor, City Council, and City Manager The introductory section includes this transmittal letter, the City's organizational chart, and a list of principal officials. The financial section consists of the general purpose financial statements, including the audit opinion and footnotes, and the combining and individual fund and account group financial statements and schedules. The statistical section includes selected financial and demographic information, generally on a multi-year basis. The City of La Quinta is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditor's reports on the internal control structure and compliance with applicable laws and regulations, are included in a separate report. The following governmental agencies that provide services to the citizens of the City of La Quinta have been excluded from this report because the City does not exercise oversight responsibilities over these agencies: State of California and its departments, County of Riverside and its departments, Coachella Valley Association of Governments, Riverside County Transportation Commission, Riverside County Waste Management District, Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School District, Desert Community College District, Mosquito Abatement District, and Coachella Valley Water District. Background The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City motto is "The Gem of the Desert". The City is governed by a five member City Council under the Council/Manager form of government. The Mayor is directly elected by the citizens. The City was incorporated in 1982 as a general law City. Significant demographic data is as follows: • Population as of December 1995 was 18,046 an increase of 152% from 1985; • Retail Sales over $87.5 million a 279% increase from 1985; • Taxable Sales over $121.5 million a 274% increase from 1985; • Assessed Valuation over 2 billion a 312% increase from 1985; and, • Hotel Room sales over 23 million a 251% increase from 1985 The City area includes the beautiful La Quinta Hotel, world class golf resorts, numerous single family and multi -dwelling units and light commercial industries. The City has a beautiful 10,000 sq ft Senior Center for City residents. The Desert Unified School District has opened the La Quinta High School. M Honorable Mayor, City Council, and City Manager The City has been experiencing rapid growth in population making it one of the fastest growing Cities in California. With this growth comes a demand on local government to meet the needs of its citizens. The total number of full time authorized positions for 1995-96 is 68. In addition to the 18,046 permanent residents approximately 9,300 seasonal residents spend three to six months in the City. Ser►°ices Provided by the City City services can be divided into those services provided directly by City staff and those services contracted out to other government agencies and organizations. Direct services provided by City staff in the following areas include: General Government - Legislative - City Manager - Economic Development Finance - Fiscal Services - Central Services - Management Information Building and Safety - Administration - Code Enforcement - Animal Control - Building - Emergency Services - Fire - Civic Center Building Public Works - Administration - Engineering & Inspections - Maintenance & Operations ff City Clerk - City Clerk Parks and Recreation - Recreation - Senior Center !QomLLiwiityD vela e t - Administration - Current Planning - Advance Planning - Redevelopment Honorable Mayor, City Council, and City Manager Contracted services provided to the City and its citizens include police and fire protection through the County of Riverside, library services through the County of Riverside, visitor & tourist information through Palm Springs Desert Resorts Convention Visitors Bureau, economic development through the La Quinta Chamber of Commerce, water service through the Coachella Valley Water District, electricity service through the Imperial Irrigation District, refuse collection through Waste.Management Company, and cable service through Continental Cable. Significant Events and Accomplishments During 1995-96 the City experienced many significant events and accomplishments that may not be readily evident from a review of the financial statements. Some of the more important of these items are: Real Estate Single family construction accounted for $54 million in building permits while commercial construction accounted for over $6 million and multifamily permit values were $6.5 million. The One Eleven La Quinta shopping center is under construction anchored by Wal Mart, Albertson's Grocery and various retail outlets. This 60 acre 620,000 sq. ft retail center is located at Washington Street and Highway 111. The development of numerous residential communities has increased the assessed valuation in the City. As mentioned earlier, the City's assessed valuation has increased four fold from 1985 to over $2 billion, with an increase of $100 million during the latest year. H io rsing La Quinta has housing that ranges from the affordable to luxury estates. The median home prices in La Quinta have been relatively stable and are significantly lower than other areas of the Coachella Valley mostly due to the reasonably priced land values. The U.S. Census has established the median home price at $112,000 which is lower than Riverside, San Diego, Los Angeles Counties and the State of California. There were 500 housing units built during 1995 which brings to 9,352 the number of total units within the City. The 9,352 units consist of 8,624 single family residences, 481 multi family residences, and 247 mobile homes. iv Honorable Mayor, City Council, and City Manager Tourism La Quinta is home to several of the worlds highest rated golf courses. During FY 1995-96, major golf tournaments hosted in La Quinta included the prestigious Bob Hope Chrysler Classic, the Diners Club Tournament, the Liberty Mutual Senior Legends of Golf, and Raymond Floyd hosted charity golf event. The nationally recognized La Quints Arts Festival attracts many visitors from around the country each year to the City of La Quinta and the Coachella Valley. The La Quinta Hotel, the second largest destination resort in the Coachella Valley, recorded dramatic growth in hotel revenues during 1995. A 37,000 square foot ballroom facility was recently added to the hotel to accommodate larger conventions. The City increased funding for the Palm Springs Desert Resort Convention Bureau for tourism promotion and provided funding for the Airline Services Council to bring a low cost carrier to the Coachella Valley. Capital 1 mpro vement sI S t ud ie s The completion of over $12,600,000 in capital improvements including the Washington Street Bridge and Phase V street improvements. The development of a multi-year Capital Improvement Program and the completion of both the Highway 111 Commercial Corridor Assessment and Landscape & Lighting Assessment District Feasibility Reports. Community Facilities, The City completed the Fritz Burns and Adams Street Parks while maintaining 19.5 acres of medians, 14.6 acres of parks and 104 miles of streets. Also completed were sports complex lighting improvements, new traffic signals at 8 intersections, the Adams Street extension and crossing at the Whitewater Channel. City QPeratiniis The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 1995-96: Preparation of a Comprehensive Economic Development Plan; City awarded Helen Putnam Award from League of California Cities; Completed City Land Inventory tracking system; Honorable Mayor, City Council, and City Manager Implemented Optical Disk Imaging System for City Clerk records; Received awards in excellence for financial and budget reports; Updated investment policies; Automation of building permit issuance function; Major improvements to Emergency Operations Center; and Completed first City Zoning Ordinance Update. Future develo ments include, continued commercial development along the Highway 111 corridor, redevelopment financed property development on Avenue 48 and completion of residential projects in the northern part of the City. Financial Information Management of the City of La Quinta is responsible for establishing and maintaining an internal control structure designed to ensure that assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit - As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to periodic evaluation by management. As a part of the City's single audit , tests are made to determine the adequacy of the internal control structure, including that portion relating to Federal assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the government's single audit for the fiscal year ended June 30, 1996 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. cc untin C ntrols - The City of La Quinta's accounting system is designed upon the following principals: In the public sector, a city government maintains a variety of "funds" that provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with a complete set of self -balancing accounting records. Each fund has been established because of some restriction on the use of the resources received by that fund. In the private sector, a corporation may have many subsidiaries which make up the parent corporation. Likewise in the public sector, all of the funds make up the complete ►SAI Honorable Mayor, City Council, and City Manager financial resources of the City of La Quinta. This report includes the transactions of all entities over which the City Council of the City of La Quinta has authority (as defined by the Government Accounting Standards Board). The City's accounting system operates on a modified accrual basis for all governmental and agency type funds. Government funds include the General, Special Revenue, Debt Service, and Capital Projects Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period, and expenditures, other than interest or long term debt, are recorded when liabilities are incurred. The City maintains one Internal Service Fund and no Enterprise Funds. These types of funds use the accrual method of accounting. Revenues and expenses are recorded when earned or incurred. In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the costibenefit of the controls imposed. The cost of a control should not be excessive to its derived benefit as viewed by City management. The internal controls in existence at the City of La Quinta are sufficient to ensure in all material respects both the safety of the City's assets and the accuracy of the financial record keeping system. Bugetaryrntrols The City Manager submits a preliminary budget to the City Council before each fiscal year. Public hearings are then held prior to July 1 to receive public comment. A budget is required to be adopted before the beginning of the fiscal year. Amendments to the budget or budget transfers between funds require Council approval. Budget transfers within funds require City Manager approval. All fiscal year end appropriations and encumbrances lapse at year end unless specifically approved by the Council for inclusion in the following years appropriations. Each Department receives a monthly budget -to- actual expenditure report. In addition, each department can access the financial information system data through the City-wide computer network. The City Council is also given an Executive level Summary of Revenues and Expenditures on a monthly basis. Vii Honorable Mayor, City Council, and City Manager Gann Limit - Appropriations SuWect_to the Limit In 1979, Proposition 4, the "Gann" initiative, was passed by the voters of California. The purpose of this law was to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. This limit is increased each year through a formula that takes into consideration changes in the Consumer Price Index and state per -capita income. If a city reaches this limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be defined at that time. The Gann Limit for the City of La Quinta has increased steadily since 1979 and still provides the City with a comfortable operating margin. In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors. Using population growth in the City of La Quinta and growth in the State per capita income allowed the Gann limit for 1995-96 to increase to $20.5 million. Appropriations of "proceeds of taxes" was $ 7.5 million for a margin of $13.0 million. Revenue and EUenses from All Fund Types The following schedules present a summary of the general fund, special revenue funds, debt service funds, capital project funds, Internal Service fund revenues and expenditures for 1995-96 and the amount and percentage of increases and decreases in relation to prior year revenues. Revenue from All Fund Types vni 95-96 over % Fund Type 1995-96 1994-95 (under) 94-95 Change General Fund $8,966,850 8,481,939 484,911 5.7% Special Revenue Fund 6,933,517 4,366,880 2,566,637 58.8% Debt Service Funds 12,541,457 12,252,411 289,046 2.4% Capital Project funds 2,392,926 2,491,866 (98,940) -4.0% Internal Service Fund 252,586 0 252,586 n/a Total $31,087,336 27,593,096 3,494,240 12.7% vni Honorable Mayor, City Council, and City Manager Expenditures/Expenses - All Fund Types Overall, the increased revenues for 1995-96 are due primarily to the sale of land and interest on unspent 1995 bond proceeds in the Redevelopment Agency. The expenditure increase in 1995-96 is a result of increased activity in the Redevelopment Agency's Low and Moderate Income Programs. General Fund The City's General Fund is used to record all revenue and expenditures not specifically restricted by law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy tax, licenses and permits, and interest. Categories of expenditures include police services, public works, planning, parks and recreation, and administrative functions. The following two tables summarize General Fund revenues and expenditures for 1995-96 and 1994-95. General Fund Revenue 95-96 over % Fund Type 1995-96 1994-95 (under) 94-95 Change General Fund $6,902,364 6,305,104 597,260 9.5% Special Revenue Fund 10,333,169 6,182,251 4,150,918 67.1% Debt Service Funds 12,584,015 12,373,399 210,616 1.7% Capital Project funds 4,129,822 4,687,518 (557,696) -11.9% ;sternal Service Fund 0 0 0 0 Total $33,949,370 29,548,272 4,401,098 14.9% Overall, the increased revenues for 1995-96 are due primarily to the sale of land and interest on unspent 1995 bond proceeds in the Redevelopment Agency. The expenditure increase in 1995-96 is a result of increased activity in the Redevelopment Agency's Low and Moderate Income Programs. General Fund The City's General Fund is used to record all revenue and expenditures not specifically restricted by law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy tax, licenses and permits, and interest. Categories of expenditures include police services, public works, planning, parks and recreation, and administrative functions. The following two tables summarize General Fund revenues and expenditures for 1995-96 and 1994-95. General Fund Revenue Wq 95/96 over % Fund Type 1995-96 1994-95 (under) 94-95 Change Taxes $5,393,456 4,946,304 447,152 9.0% Licenses and permits 998,030 902,914 95,116 10.5% Charges for services 610,873 551,727 59,146 10.7% Intergovernmental 815,980 747,784 68,196 9.1% Interest 905,420 718,310 187,110 26.0% Litigated Settlements 12,386 477,872 (465,486) -97.4% Miscellaneous 230.705 137,028 93,677 68.4% Total —MM615-0— 8.481.939 484.911 Wq Honorable Mayor, City Council, and City Manager The 1995-96 General Fund revenue increase of 5.7% reflects an across the board average increase and is a result of an ongoing steady increase in new development, tourism, and population. I to Brest revenue increase of 26 % is a result of higher cash balances. The large decrease of 97.4% in Litigated Settlements reflects the lack of settlement activity in an ongoing litigation. The 68.4% increase in Miscellaneous revenue is due to a one time grant of $125,000 from the local cable company. Fund Type General Government Public Safety Community Services Planning & Development Public Works Capital Outlay Debt Service Total General Fund Expenditures The 1995-96 General Fund expenditures increase of 9.5% reflects primarily, one category - Community Services. This increase is a result of Council's desire to increase Community Service programs to the public. General Government expenditures increased 14.6% over 1994-95 expense due to increased activity in economic development and the Assistant City Manager's position, vacant in 1994-95, being filled in 1995- 96. Public Safety's expenditures showed little change in 1995-96. Community Services large increase of 107.5% reflects numerous program additions offered to the public. Planning & Development decrease of 15.8% is a result of increased personnel reimbursement from the Redevelopment Agency which decreased Planning & Development's net expenditures. Public Works expenditures increased 41.1% in 1995-96 because $200,000 of State Gas Tax funding was directed to a capital improvement project and was not used to reimburse (reduce) Public Works expenditures as in 1994-95. Cqp tal Outhy decreased 28.6% in 1995-96 as a result of decreased new computer purchases in 1995-96. Sneeial Revenue Funds The City's Special Revenue Funds, which account for the collection and use of special or restricted revenue, received $6.9 million in 1995-96. This is an increase of 58.8%. The Special Revenue Fund expenditures were $10.3 million, an increase of 67.1 %. The following two tables summarize Special Revenue Funds revenues and expenditures for 1995-96 and 1994-95: 95/96 over % 1995-96 1994-95 (under) 94-95 Change $1,793,301 1,565,265 228,036 14.6% 3,227,438 3,143,697 83,741 2.7% 413,142 199,115 214,027 107.5% 453,656 538,610 (84,954) -15.8% 813,352 576,304 237,048 41.1% 201,475 282,113 (80,638) -28.6% 0 0 0 n/a 6902_ —6005,104 _ 597,20 The 1995-96 General Fund expenditures increase of 9.5% reflects primarily, one category - Community Services. This increase is a result of Council's desire to increase Community Service programs to the public. General Government expenditures increased 14.6% over 1994-95 expense due to increased activity in economic development and the Assistant City Manager's position, vacant in 1994-95, being filled in 1995- 96. Public Safety's expenditures showed little change in 1995-96. Community Services large increase of 107.5% reflects numerous program additions offered to the public. Planning & Development decrease of 15.8% is a result of increased personnel reimbursement from the Redevelopment Agency which decreased Planning & Development's net expenditures. Public Works expenditures increased 41.1% in 1995-96 because $200,000 of State Gas Tax funding was directed to a capital improvement project and was not used to reimburse (reduce) Public Works expenditures as in 1994-95. Cqp tal Outhy decreased 28.6% in 1995-96 as a result of decreased new computer purchases in 1995-96. Sneeial Revenue Funds The City's Special Revenue Funds, which account for the collection and use of special or restricted revenue, received $6.9 million in 1995-96. This is an increase of 58.8%. The Special Revenue Fund expenditures were $10.3 million, an increase of 67.1 %. The following two tables summarize Special Revenue Funds revenues and expenditures for 1995-96 and 1994-95: Honorable Mayor, City Council, and City Manager Special Revenue Funds - Revenue Taxes increased moderately 4.9%, due to an increase in the La Quinta Redevelopment Low and Moderate income fund tax increment. Intergovernmental decreased 18.3% reflecting a loss of CDBG funding for construction of a senior center facility, due to its completion. The decrease in Developer Fees_of 96.1% reflects lack of activity in developments that involve Quimby fees under the Quimby Act. Intere hada large increase of 251.7% due to larger cash balances because of a land sale. Rental Income increased in 1995-96 as a result of the La Quinta Redevelopment Low and Moderate income program purchasing 50 recital units and renting them out to qualified applicants. The large increase in MiScellan&ous revenue is due to $242,000 in subsidy reimbursements to the La Quinta Redevelopment Low and Moderate income program. The Land Sale increase is a result of the La Quinta Redevelopment Agency's sale of land. Special Revenue Funds - Expenditures 95/96 over % Source 1995-96 1994-95 (under) 94-95 Change Taxes $2,952,336 2,813,394 138,942 4.9% Intergovernmental 344,235 421,507 (77,272) -18.3% Developer fees 3,190 81,909 (78,719) -96.1% Interest 757,006 215,250 541,756 251.7% Special assessments 991,123 823,950 167,173 20.3% Rental Income 328,059 0 328,059 n/a Miscellaneous 242,986 10,870 232,116 2135.4% Land Sale 1,314,582 0 1,314,582 n/a Total $6.933.51.7 _ 4,366E 900 2.566. 37 58.8% Taxes increased moderately 4.9%, due to an increase in the La Quinta Redevelopment Low and Moderate income fund tax increment. Intergovernmental decreased 18.3% reflecting a loss of CDBG funding for construction of a senior center facility, due to its completion. The decrease in Developer Fees_of 96.1% reflects lack of activity in developments that involve Quimby fees under the Quimby Act. Intere hada large increase of 251.7% due to larger cash balances because of a land sale. Rental Income increased in 1995-96 as a result of the La Quinta Redevelopment Low and Moderate income program purchasing 50 recital units and renting them out to qualified applicants. The large increase in MiScellan&ous revenue is due to $242,000 in subsidy reimbursements to the La Quinta Redevelopment Low and Moderate income program. The Land Sale increase is a result of the La Quinta Redevelopment Agency's sale of land. Special Revenue Funds - Expenditures Planninging & Developrnem increase of 23.8% is a result of increased activity in the La Quinta Redevelopment Low and Moderate subsidy programs. The decrease in Public Works of 15.5% reflects a transfer of $200,000 in State Gas Tax Funds to the Capital Improvement Fund and therefore was not available to reimburse (reduce) Public Works expenditures. The significant increase of 539.4% in Capital Outlay Xi 95/96 over % Source 1995-96 1994-95 (under) 94-95 Change Planning & Development $5,454,978 4,405,909 1,049,069 23.8% Public Works 987,313 1,168,522 (181,209) -15.5% Capital Outlay 3,886,267 607,820 3,278,447 539.4% Debt Service 4,611 0 4,611 n/a Total $10-313-169 6,1.82d25L 4,150,918 ...... LYD— Planninging & Developrnem increase of 23.8% is a result of increased activity in the La Quinta Redevelopment Low and Moderate subsidy programs. The decrease in Public Works of 15.5% reflects a transfer of $200,000 in State Gas Tax Funds to the Capital Improvement Fund and therefore was not available to reimburse (reduce) Public Works expenditures. The significant increase of 539.4% in Capital Outlay Xi Honorable Mayor, City Council, and City Manager primarily is the result of a La Quinta Redevelopment Agency land and home purchases. The Debt Service increase is a direct result of interest charged to the Lighting and Landscaping fund due to negative cash. Debt Service Funds The City's Debt Service Funds are used to record the payment of interest and principal on the current portion of outstanding debt. The following two tables summarize Debt Service Funds revenues and expenditures for 1995-96 and 1994- 95: Debt Service Funds - Revenue 94-95 over % Source 1994-95 1993-94 (under) 93-94 Change Taxes Intergovernmental Interest Rental Income Total $11,809,354 1,162 159,602 571,339 $11,338,868 6,502 207,563 699,478 $12,541,457 $12,252,411 $470,486 (5,340) (47,961) (128,139) $289,046 4.1% -82.1% -23.1% -18.3% 2.4% Taxes increased moderately 4.1% due to the La Quinta Redevelopment Debt Service fund tax increment. The decrease in Inter<ggvemmental revenue reflects fewer contract service fees charged by the La Quinta Financing Authority. Interest decreased 23.1 % which reflects lower cash balances due to renegotiated higher payments on one of the La Quinta Redevelopment Agency's tax increment pass through agreements. Rental income is 18.3% lower in 1995-96 due to the La Quinta Financing Authority using interest earnings to offset lower rent charges to the City for the City Hall complex. Expenditure Type Planning& Development Debt Service Total Debt Service Funds- E'xvenditures 1995-96 $213,993 12,370,022 $12,584,015 95-96 over % 1994-95 (under) 94-95 Change 195,596 18,397 9.4% 12,177,803 192,219 1.6% $12,373,399 210,616 1.7% Debt sgrvigg expenditures were relatively unchanged in 1995-96. xu Honorable Mayor, City Council, 95-96 over and City Manager Expenditure Type 1995-96 1994-95 CgpitaI Project Funds Change Planning& Development $1,366,745 Capital Project Funds are used to record the receipt and disbursement of monies that are restricted for the acquisition and construction of capital facilities. -4.8% Capital Projects 2,753,477 The following two tables summarize Capital Project Funds revenues and expenditures for 1995-96 and 1994-95: 18.0% Debt Service 9,600 Cal)ital Project Funds - Revenue (909,048) -99.0% Total $4,129,822 95-96 over % Source 1995-96 1994-95 (under) 94-95 Change Intergovernmental $283,010 482,633 (199,623) -41.4% Developer fees 1,735,233 1,396,711 338,522 24.2% Interest 365,531 244,916 120,615 49.2% 1:itigated Settlements 9,152 353,118 (343,966) -97.4% Miscellaneous 0 14,488 (14,488) -100.0% Total $2,392,926 $2,491,866 (98,940) -4.0% Intergovernmental revenues decreased 41.4% primarily as a result of Coachella Valley Association of Government reduced Measure A funding for a completed capital improvement project. Developer fees increased 24.2% due to increased infrastructure fees which reflects continuing development of vacant land in the City. Inte es revenue increased 49.2% primarily due to higher cash balances in the La Quinta Redevelopment Agency Capital Improvement Fund. The 97.4% decrease in Liti ated Settlements reflects the lack of settlement activity in an ongoing litigation. C anital Proiect Funds - Exnenditures The decrease of 4.8% in Planning & Development reflects lower legal costs in the Redevelopment Agency capital improvement fund. Capital Outlay increased 18.0% reflective of the increased activity, in the Capital Improvement Projects. The large decrease of 99.0% in Debt Service is a result of a final payoff in 1994- 95for a financed land purchase in the Redevelopment Capital Improvement fund. 95-96 over % Expenditure Type 1995-96 1994-95 (under) 94-95 Change Planning& Development $1,366,745 $1,435,830 (69,085) -4.8% Capital Projects 2,753,477 2,333,040 .420,437 18.0% Debt Service 9,600 918,648 (909,048) -99.0% Total $4,129,822 $4,687,518 (557,696) -11.9% The decrease of 4.8% in Planning & Development reflects lower legal costs in the Redevelopment Agency capital improvement fund. Capital Outlay increased 18.0% reflective of the increased activity, in the Capital Improvement Projects. The large decrease of 99.0% in Debt Service is a result of a final payoff in 1994- 95for a financed land purchase in the Redevelopment Capital Improvement fund. Honorable Mayor, City Council, and City Manager Internal Service Fund The City's Internal Service Fund (Equipment Replacement Fund) is used to account for the use of certain equipment by the departments that use the equipment. Charges will be based on a schedule that covers the equipments maintenance and depreciation costs. This fund was established in 1995-96 and had no operating activity. The General Fund has seeded this new fund with starting cash and operations will start in 1996-97. Source Operating Revenue: Non Operating Revenue: Interest Operating Transfer in Total Expense Type Operating Expenses Non -Operating Expenses Total Risk Mana ement Internal Service Fund - Rey'enue 95-96 over % 1995-96 1994-95 (under) 94-95 Change $0 0 0 0.0% 22,586 0 22,586 n/a 250,000 0 250,000 n/a $272,586 0 272,586 n/a Internal Service Fund - Expense 95-96 over % 1995-96 1994-95 (under) 94-95 Change $0 0 0 0.0% 0 0 0 0.0% $0 0 0 0.0% The City is self-insured for general liability insurance in the amount of $125,000 per occurrence and for worker's compensation in the amount of $250,000 per occurrence. Individual claims in excess of the self- insured amounts for general liability and worker's compensation (up to a maximum of $10,000,000 per incident) fall under the insurance policies purchased by the City. The City is a member of the Coachella Valley Joint Powers Insurance Authority (CVJPIA) which was formed to jointly Fund insurance programs. The CVJPIA is composed of twenty four member agencies. The City's goal in Joining the CVJPIA was to achieve long term premium stability. The CVJPIA provides general liability coverage in excess of $125,000 with a maximum of $ 10,000,000 per claim. Further information on the CVJPIA can be found in Note 19 to the Financial Statements. xiv Honorable Mayor, City Council, and City Manager Cit Retirement Costs Note 18 in the Notes to the Financial Statements explains in detail the financing of the City's retirement program. Significant financial information has been disclosed in the notes in order to comply with GASH Statement Number 5. Based upon the latest information, the total over fitnded benefit obligation applicable to the employees of the City at June 30, 1995 was $,538,118, up $90,324 from an overfunded pension benefit obligation of $447,794 as of June 30, 1994. Employer contribution rates are reviewed and adjusted annually to achieve full funding for retirement benefits by the year 2000. Cash Management The City Treasurer is charged with the responsibility of safeguarding the City's assets, receiving all payments due the City and investing all inactive funds. During the year the City Treasurer earned about $2.2 million in interest on investments in all fund types from instruments yielding up to 5.972%, compared to earnings of $1.39 million during 1994-95. Funds are invested in various types of instruments as shown below. At June 30, 1996, the Treasurer had 100% of all available funds invested. The City's total portfolio at year end was $ 39,238,679. Below is a summary of cash and investments outstanding as of June 30, 1996: Form of Cash and Investments June 30, 1996 Deposits ( 175,410) Mutual funds 6,468,064 United States Treasury Bills 18,365,194 Local Agency Investment Fund 14,034,148 Deferred compensation -mutual funds 546,683 Total 39.23 $,679 As required by State law, the City Council has adopted a comprehensive investment policy specifying the type and term of City investments. The policy allows the City Treasurer flexibility without endangering the safety, liquidity or yield of the total portfolio. Certificate of Award for Outstanding Financial Reporting The California Society of Municipal Finance Officers (CSMFO) presents an annual Certificate of Award for Outstanding Financial Reporting. The City of La Quinta received this award for Fiscal Year 1994- 95. The Certificate is valid for one year only. Acknowledgments This report could not have been accomplished without the dedicated services of the Finance Department staff. Special recognition is given to John Risley, Accounting Supervisor for his efforts in preparing the introductory and financial sections, Geniene Croft, Financial Services Assistant for her efforts in preparing the statistical section and Debbie De Renard, Secretary for her report preparation skills. We also appreciate the efforts of the Conrad & Associates, CPA's audit team for their professionalism in conducting the annual audit for the City of La Quinta. spectfully su milted, o M. Falco er Finance Director and Treasurer xv (This page intentionally left blank) xvi Honorable Mayor, City Council, and City Manager CITY OF LA QUINTA Directory of Officials June 30, 1996 CITY COUNCIL Glenda L. Holt Ronald Perkins Stanley Sniff Don Adolph Terry Henderson ADMINISTRATION Thomas P. Genovese David Cosper John M. Falconer Thomas Hartung Jerry Herman Saundra L. Juhola Marty Nicholson Dawn Honeywell xvu Mayor Mayor Pro Tem Council Member Council Member Council Member City Manager Public Works Director/City Engineer Finance Director Building and Safety Director ' Community Development Director City Clerk Parks & Recreation Director City Attorney (This page intentionally left blank) xviii X X Po_llce Cwuiit�i_Contract Parks & Recreation f Adminlstratfen Director Recreation Supervisor Secretary Kidsline Coordinator Senior Center --� Superuisat ' Activities Coordinator Assistant f City Attorney 1 General Government Assistant City Manager Department Secretary Secretary Management Assistant Public Works _ Administration 4 Senior Secretary Development & Traffic s Senior Engineer Associate Engineer Assistant Engineer I - 2 Positions Assistant Engineer II Counter Technician Capital Projects Senior Engineer Assistant Engineer II Maintenance & Operations Maintenance Manager Maintenance Foreman - 3 Positions Maintenance Worker II - 5 Positions Maintenance Worker I - 4 Positions City of La Quinta, California Organizational Chart Fiscal Year 1995/96 Mayor and City Council Redevelopment Agency Board Financing Authority Board_ City Manager City Clerk Deputy City Clerk I Deputy City Clerk II Office Assistant Finance �! �r f Buildin & Safety Fiscal Services !Ldrqlstmtlon Director _ Director Accounting Supervisor Senior Secretary Financial Services Assistant Account Technician Code Compliance Secretary Community Safety Manager Account Clerk Code Compliance Officer II Code Compliance Officer I - 2 Positions Central Services Counter Technician ien_i_or Management Assistant Animal Control Animal Control Officer II Animal Control/Code Compliance Officer Building & Safety Manager Senior Building Inspector Building Inspector I - 2 Positions Counter Technician Civic Center Building Operatlons Facilities Maintenance Technik im L Contmun_!!y Development Administration I Oirectar Planning Manager Executive Secretary Office Assistant Current Planning___ Principal Planner Associate Planner -2 Positions - Advance Planning Principal Ptanner Associate Planner (This page intentionally left blank) xx -- Caqforwa Society of Municipal finance Officers Certificate of Award Outstanding Financial Reporting 1994-95 Pre,sented tai City of La Quz*nta This cert ftcale Is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of qua1b)- A _ to the annual financial statements and in the underlying accounting system from which the reports were prepared .February 24, ;996. /rt - Chaff. culvn4! A Tre�4nicat Stan&r& co"WalttCe i Ali X Dedicated to Excellence in Municipai Financial Management IC (This page intentionally left blank) XXII CONRAD �'-7A—%,-SSOCI 11 ES, L.L.P. A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report CERTIFIED PUBLIC ACCOUNTANTS 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92614 (714) 474-2020 We have audited the accompanying general purpose financial statements of the City of La Quinta, California as of and for the year ended June 30, 1996, as listed in the table of contents. These general purpose financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards; !Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." 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 significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the aforementioned general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of La Quinta, California as of June 30, 1996, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual funds financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of La Quinta, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The scope of our audit did not include the supplemental statistical schedules listed in the table of contents and we do not express an opinion on them. In accordance with Government Auditing_ Standards issued by the Comptroller General of the United States, we have also issued a report dated August 20, 1996 on our consideration of the City's internal control structure and a report dated August 20, 1996 on its compliance with laws and regulations. August 20, 1996 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION See accompanying notes to the financial statements. 2 CITY OF LA QUINTA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1996 Governmental Fund Types Special Debt Capital Assets and other debits General Revenue Service Proiects Assets: Cash and investments (note 2) $ 6,134,504 5,690,910 3,287,145 6,526,209 Cash with fiscal agent (note 2) - 11,802,982 1,106,131 2,056,746 Accounts receivable 348,938 5,951 - 63,000 Prepaid expenses 24,123 - 250,015 22,500 Interest receivable 51,350 66,357 35,953 64,786 Notes receivable - 95,445 - - Due from other funds (note 25) - - - 10,505 Due from other governments 179,242 23,489 - - Advances to other funds (note 12) 6,653,852 551,038 - Deposits 2,073 - - - Property, plant and equipment (note 4) - - - - Land held for resale - - - - Other debits: Amount available in debt service funds - - - - Amount to be provided for retirement of general long-term debt - - Total assets 113,394,082 18,236,172 4,679,244 8,743,746 Liabilities, equity and other credits Liabilities: Accounts payable $ 769,827 18,066 4,356 281,163 Accrued expenses 128,116 - 385,646 20,725 Compensated absences payable - - - - Deposits payable 130,064 48,982 - 52,100 Deferred compensation payable (note 17) - - - Contracts payable - 510,756 - - Retentions payable - - - 107,364 Due to other funds (note 25) - 10,505 - - Due to bondholders - - - - Advances from other funds (note 12) - - 551,038 Obligations under pass-through agreements (notes 9, 10, and 11) - - - - Tax allocation bonds (note 6) - - - - Revenue bonds (note 8) - - - - Housing TABS (note 7) - - - - Total liabilities 1,028,007 588,309 941.040 461,352 Equity and other credits: Investment in general fixed assets - - - - Retained earnings (note 16): Unreserved - - - - Fund balances (note 15): Reserved 6,680,048 646,483 1,356,888 1,842,857 Unreserved 5,686,027 17,001,380 2,381,316 6,439,537 Total equity and other credits 12,366,075 11647,863 3,738,204 8,282,394 Total liabilities, equity and other credits $13,394,082 18,236,172 4,679,244 8,743,746 See accompanying notes to the financial statements. 2 EXHIBIT AA Proprietary - - 1,073,412 532,904 - - Fund Types Fiduciary Fund Types Account Groins - - Totals Internal 309,279 General General {Memorazidum Only) Service Aaencv Fixed Assets Lona-Terrn Debt 1996 1995 249,881 2,384,171 - - 24,272,820 16,819,195 - - - - 14,965,859 2,482,937 - - - - 417,889 422,955 - - - - 296,638 49,277 2,705 48,558 - - 269,709 - - - - - 95,445 67,120 - - - - 10,505 407,918 - - - - 202,731 291,125 - - - - 7,204,890 6,560,860 - - - - 2,073 2,075 - - 27,507,953 - 27,507,953 21,773,429 361,340 - - 3,738,204 3,738,204 3,140,260 - - 98,489,069 98,489,069 77,857,208 252,586 2,432,729 27,507,,953 102,227,273 177 473,785 130,235,699 - - - - 1,073,412 532,904 - - - - 534,487 842,974 - - - 298,818 298,818 309,279 - 282,132 - - 513,278 423,063 - 546,683 - - 546,683 279,966 - - - - 510,756 - - - - - 107,364 - - - - - 10,505 407,918 - 1,603,914 - - 1,603,914 1,346,616 - - - 6,653,852 7,204,890 6,560,860 - - - 24,999,603 24,999,603 25,749,232 - - - 39,620,000 39,620,000 40,530,000 - - 8,200,000 8,200,000 8,360,000 - - - 22,455,000 22,455,000 - - 2,432,729 - 102,227,273 107,678,714 85,342,812 - - 27,507,953 - 27,507,953 21,773,429 252,586 - - - 252,586 - 10,526,276 10,075,237 31.50 8.26 0 13.044.221 252,586 - 27,507,953 - 69,795,075 44,892,887 252,586 2,432,729 27,507,953 102,227,273 177,473,785 130,235,699 3 (This page intentionally left blank) See accompanying notes to the financial statements. E EXHIBIT BB CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended June 30, 1996 Totals Special Debt Capital Memorandum Only) General Revenue Service Proiects 1996 1995 Revenues: Taxes $5,393,456 2,952,336 11,809,354 - 20,155,146 19,098,566 Licenses and permits 998,030 - - - 998,030 902,914 Charges for services 610,873 - - - 610,873 551,727 Developer fees - 3,190 - 1,735,233 1,738,423 1,478,620 Intergovernmental 815,980 344,235 1,162 283,010 1,444,387 1,658,426 Interest 905,420 757,006 159,602 365,531 2,187,559 1,386,039 Special assessments - 991,123 - - 991,123 823,950 Rental income - 328,059 571,339 - 899,398 699,478 Sale of land - 1,314,582 - - 1,314,582 - Litigation settlement proceeds 12,386 - - 9,152 21,538 830,990 Miscellaneous 230,705 242,986 - 473,691 162,386 Total revenues 8,966,850 6,933,517 12,541,457 2,392,926 30,834,750 27,593,096 Expenditures: Current: General government 1,793,301 - - - 1,793,301 1,565,265 Public safety 3,227,438 - - _ 3,227,438 3,143,697 Community services 413,142 - - - 413,142 199,115 Planning and development 453,656 5,454,978 213,993 1,366,745 7,489,372 6,575,945 Public works 813,352 987,313 - - 1,800,665 1,744,826 Capital outlay 201,475 3,886,267 - 2,753,477 6,841,219 3,222,973 Debt service: Principal - - 1,070,000 - 1,070,000 1,245,491 Interest - 4,611 4,502,078 9,600 4,516,289 3,451,343 Payment of advances - - - - - 894,295 Payments under pass-through obligations - - 6,797,944 - 6,797,944 6,954,152 Mandated education contribution - 551,170 Total expenditures 6,902,364 10,333,169 12,584,015 4,129,822 33,949,370 29,548,272 Excess (deficiency) of revenues over (under) expenditures 2 064,486 (3,399,652] (42,558 (1,736,896 (3,114,620 (1,955,1761 Other financing sources (uses): Operating transfers in 246,706 1,853,715 1,287,060 5,643,858 9,031,339 6,192,273 Operating transfers out (274,106) (6,429,392) (1,251,453) (1,326,388) (9,281,339) (6,192,273) Proceeds of bonds (net of discount and issue costs) - 21,674,803 - - 21,674,803 - Proceeds of advances from City - 604,895 - 604,895 2,621,457 Total other financing sources (uses) (27,400] 17,099,126 640,502 4,317,470 22,029 698 2,621,457 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 2,037,086 13,699,474 597,944 2,580,574 18,915,078 666,281 Fund balances at beginning of year 10,328,989 28,989 3,948389 3,140,260 5,701,820 23,119,458 22,453,177 Fund balances at end of year $12,366,075 17,647,863 3,738,204 8.282,394 42,034,536 23,119x458 See accompanying notes to the financial statements. E CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types Year ended June 30, 1996 General Fund Total expenditures 7,473 829 6,902,364 Excess (deficiency) of revenues over expenditures (15,279) 2,064,486 Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance costs) Proceeds of advances from City Total other financing sources (uses) 246,706 246,706 (302,090) (274,106) (55,3841 (27,4001 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (70,663) 2,037,086 Fund balances at beginning of year 10,328,989 10,328,989 Fund balances at end of year 51.0,258,326 12,366,075 See accompanying notes to the financial statements. 6 Variance - Favorable (,Unfavorable) 625,756 207,430 172,373 28,230 254,420 12,386 207.705 1,508,300 145,652 304,719 10,058 194,084 (166,335) 83,287 571,465 2,079,765 27,984 27,984 2,107,749 2,107,749 Budget Actual Revenues: Taxes $ 4,767,700 5,393,456 Licenses and permits 790,600 998,030 Charges for services 438,500 610,873 Developer fees - - Intergovernmental 787,750 815,980 Interest 651,000 905,420 Special assessments - - Rental income - - Sale of land - - Litigation settlement proceeds - 12,386 Miscellaneous 23,000 230,705 Total revenues 7,458,550 8,966,850 Expenditures: Current: General government 1,938,953 1,793,301 Public safety 3,532,157 3,227,438 Community services 423,200 413,142 Planning and development 647,740 453,656 Public works 647,017 813,352 Capital outlay 284,762 201,475 Debt service: Principal - - Interest - - Payments under pass-through obligations - - Total expenditures 7,473 829 6,902,364 Excess (deficiency) of revenues over expenditures (15,279) 2,064,486 Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance costs) Proceeds of advances from City Total other financing sources (uses) 246,706 246,706 (302,090) (274,106) (55,3841 (27,4001 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (70,663) 2,037,086 Fund balances at beginning of year 10,328,989 10,328,989 Fund balances at end of year 51.0,258,326 12,366,075 See accompanying notes to the financial statements. 6 Variance - Favorable (,Unfavorable) 625,756 207,430 172,373 28,230 254,420 12,386 207.705 1,508,300 145,652 304,719 10,058 194,084 (166,335) 83,287 571,465 2,079,765 27,984 27,984 2,107,749 2,107,749 EXHIBIT CC Special Revenue Funds Debt Service Funds Capital Proiects Funds Variance- Variance- Variance - Favorable Favorable Favorable 13udp,et Actual (Unfavorable) Budd Actual (Unfavorabl, Budget Actual (Unfavorable) 2,811,600 2,952,336 140,736 11,246,250 11,809,354 563,104 - - 51,400 3,190 (48,210) - - - 1,443,855 1,735,233 291,378 697,840 344,235 (353,605) 6,500 1,162 (5,338) 855,586 283,010 (572,576) 145,200 757,006 611,806 186,200 159,602 (26,598) 27,500 365,531 338,031 1,011,400 991,123 (20,277) - - - - - 426,000 328,059 (97,941) 696,400 571,339 (125,061) - - - 1,850,000 1,314,582 (535,418) - - - - - - - - - - - - - 9,152 9,152 187,300 242,986 55,686 - - - - - 7,180,740 6,933,517 247223 12,135,350 12,541,457 40�6,107 2,326,941 2,392,926 65,985 7,058,513 5,454,978 1,603,535 294,800 213,993 80,807 3,110,037 1,366,745 1,743,292 1,329,122 987,313 341,809 - - - - - - 3,970,000 3,886,267 83,733 - - - 7,783,129 2,753,477 5,029,652 - - - 1,070,000 I,070,000 - - - - 4,611 (4,611) 4,727,912 4,502,078 225,834 - 9,600 (9,600) - - - 6,964,028 6,797,944 166,084 12,357,635 10,333,169 2,024,466 4,466 13,056,740 12,584,015 472,725 10,893,166 4,12.9,822 6,763,344 (LL76895) 89S (3,399,652) 1,777,243 1921.390) (42,558) 878.832 (8,566,225) 1736 896 6,829,329 - 1,853,715 1,853,715 1,400,219 1,287,060 (113,159) 10,345,015 5,643,858 (4,701,157) (7,383,200) (6,429,392) 953,808 (850,245) (1,251,453) (401,208) (3,489,621) (1,326,388) 2,163,233 25,504,535 21,674,803 (3,829,732) - - - - - - 604,895 604,895 - - - 18,121,335 17,099,126 (1,022,209 1,154,869 640,502 (514,367 6,855,394 4,317,470 (2,537,924 12,944,440 13,699,474 755,034 233,479 597,944 364,465 (1,710,831) 2,580,574 4,291,405 3.948,389 3,948,389 _3,140.260 3,140,260 - 5,7013820 5,701.820 - 1U92,829 17,647,863 755,034 3,373.739 3,,738 .204 364,465 3,990,989 8,282,394 4,29I405 7 EXHIBIT DD CITY OF LA QUINTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year ended June 30, 1996 Totals (,Memorandum Only) Internal Service 1996 1995 Non-operating revenues (expenses): Interest revenue 2,586 2,586 - Total non-operating revenues (expenses) 2,586 2,586 Net income before operating transfers 2,586 2,586 - Operating transfers: Operating transfers in 250,000 250,000 - Total operating transfers 250,000 250,000 Net income (loss) 252,586 252,586 - Retained earnings at beginning of year - - - Retained earnings at end of year $252,586 252,586 - See accompanying notes to the financial statements. 8 EXHIBIT EE CITY OF LA QUINTA Combined Statement of Cash Flows - All Proprietary Fund Types June 30, 1996 Totals (Memorandum Only) Internal Service 1996 1995 Cash flows from non -capital financing activities: Cash received from other funds IL4,9881 249,881 - Net cash provided by (used for) non - capital financing activities 249,881 249,881 - Net increase (decrease) in cash and cash equivalents 249,881 249,881 - Cash and cash equivalents at beginning of year - - - Cash and cash equivalents at end of year $249,881 249,881 Non-cash Investing, CapAgLgnd Financing Activities For the year ended June 30, 1996, there were no non-cash financial transactions that affected the financial position of the proprietary funds. See accompanying notes to the financial statements. E CITY OF LA QUINTA Notes to the Financial Statements June 30, 1996 (1) _ Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta was incorporated May 1, 1982 under the general laws of the State of California. The City operates under the Council - Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by general accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interf ind data of the primary government. The following organizations are considered to be component units of the City: La Quinta Redevelopment AjZency The La Quinta Redevelopment Agency has established two redevelopment project areas pursuant to the State of California Health & Safety Code Section 33000 entitled "Community Redevelopment Law". On November 29, 1983 and May 16, 1989, the City Council approved and adopted the Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These plans provide for the elimination of blight and deterioration which was found to exist in the project areas. Even though it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Upon completion, separate financial statements of the Agency can be obtained at City Hall. 10 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summ= of Significant Accounting Policies,_(Continued) Citv of La Quinta Public Financina Authorit The La Quinta Public Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991, between the City of La Quinta and the La Quinta Redevelopment Agency. The purpose of the Authority is to provide, through the issuance of debt, financing necessary for the construction of various public improvements. Although it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Authority. Upon completion, separate financial statements of the Authority can be obtained at City Hall. (b) Fond Accountin The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity with a sell -balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accounting records of the City are organized on the basis of funds and account groups classified for reporting purposes as follows: GOVERNMENTAL FUNDS General Fund The primary fund of the City used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, Administrative Services, Community Development, Police Services, Public Works, Building and Safety, and Parks and Recreation. Special Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law or administrative action for specific purposes. Debt Service Fund The Debt Service Funds are used to account for resources set aside for repayment of general long-term debt. 11 CITY OF LA QUINTA Notes to the Financial Statements (Continued) X13 Summary of Significant Accounting Policies, (Continued) Capital Project Funds Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. PROPRIETARY FUNDS Internal Service Fund The Internal Service Fund is used to finance and account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The Equipment Replacement Fund is the only internal service fund in the City. It is used to account for the ultimate replacement of City owned and operated vehicles and equipment. FIDUCIARY FUNDS Agency Funds The Agency Funds are used to account for assets held by the City in an agency capacity for individuals, private businesses and other governmental agencies. ACCOUNT GROUPS General Fixed Assets Account Grou The General Fixed Assets Account Group is used to account for the costs of fixed assets acquired to perform general government functions. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Fixed asset records include estimates of original historical cost as determined by knowledgeable individuals in the City. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. 12 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 1) Summary of Significant Accounting Policies. (Continued Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided on general fixed assets. General Low, -Term Debt Account. Group The General Long -Term Debt Account Group is used to account for all long-term debt of the City. (c) Measurement Focus and Basis of Accounting Governmental (general, special revenue, debt service and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The modified accrual basis of accounting is followed by the governmental and agency funds. Under the modified accrual basis of accounting, revenues are susceptible to accrual when they become both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long-term debt, are recorded when a current liability is incurred. Liabilities are considered current when they are normally expected to be liquidated with expendable available financial resources. Taxes, subventions, and entitlements held at year-end by an intermediary collecting government are recognized as revenue under the modified accrual basis of accounting. Reimbursement grant revenues are recognized when the related expenditures are incurred. Revenues from interest and rents are recorded when earned. 13 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Sununary of Significant Accounting Policies, (Cnntin«ed) Material delinquent and total uncollected current year property taxes (net of estimated uncollectibles) are recorded as current year receivables. Property taxes (net of estimated uncollectibles) that are levied and measureable in the current year, but not available to finance current period expenditures, are recorded as a receivable and as deferred revenues. The deferred revenues are recognized as revenue in the fiscal year in which they become available. Licenses, permits, fines, forfeitures, charges for services, and miscellaneous revenues are recorded as governmental fund revenues when received in cash because they are generally not measurable until actually received. The proprietary (internal service) fund types are accounted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types report increases (revenues) and decreases (expenses) in total economic net worth. The accrual basis of accounting is utilized by the proprietary funds. Revenues are recognized when they are earned and expenses are recorded when the related liability is incurred. Unbilled service receivables, if material, have been recorded in the financial statements as an accrued revenue. (d) Budgetary Dais The City adopts an annual budget prepared on the modified accrual basis of accounting for all governmental funds except for the South Coast Air Quality, Financing Authority, Assessment District 91-1, and Assessment District 92-1 Funds and on the accrual basis of account for the proprietary 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 City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. (e) Interfund Transfers Nonrecurring transfers of equity between funds are reported as an adjustment to beginning fund balance. Operating transfers are reported as other sources and uses of funds in the statement of revenues, expenditures, and changes in fund balances. 14 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1} Summary of Significant Accounting Policies. (Continued) (f) Advances to Other Funds Long-term interfund advances are recorded as a receivable and in the long-term debt account group. (g) Investments Investments are valued at cost. An estimated loss is accrued for an impairment of investment market value when it is probable that the loss will become realized and the amount of loss can be reasonably estimated. In management's opinion, it is not probable that the temporary declines in the market value of the City's investments will become realized because it is management's intention to hold the investments to maturity or until the market value of the investments equals or exceeds their cost. Therefore, temporary market value declines are not reflected in the accompanying financial statements. Any losses resulting from a permanent decline in investment market values are recorded as a reduction of interest income. (h) Due from Other Governments The amounts recorded as a receivable due from other governments include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County and City Governments and unremitted to the City as of June 30, 1996. The County of Riverside assesses, bills, and collects property taxes for the City. (i) Land Feld for Resale Land held for resale represents property acquired by the Agency for resale. The property is recorded at original cost. No write-down for a lower market value has been reflected in the accompanying financial statements. 0) Employee Leave Benefits Sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 30 days per type of leave. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage increases by 25% for each five year period until the employee is entitled to 75% of the value of his unused sick leave. This will occur upon the completion of ten years of continuous employment. 15 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1,) Summary of Significant Accounting Policies, (,Continued) (k) Claims and Judgments The City records a liability for material litigation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year end and the probable amount of loss (net of any insurance coverage or available funds on deposit) can be reasonably estimated. (1) Postemplovment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. (m) Capital Projects Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. (n) Cash Equivalents for Statement of Cash Flows For purpose of the statement of cash flows, cash equivalents are defined as short- term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of change in value because of changes in interest rates. Investments purchased within three months of original maturity are considered to be cash equivalents. Cash and cash equivalents in the accompanying statements include the proprietary funds' share of the cash and investment pool of the City of La Quinta. (o) Applicability of FASB Pronouncements to Proprietary Funds The City applies all applicable GASB pronouncements in accounting and reporting for its proprietary operations as well as the following pronouncements issued on or before November 30, 1989, unless these pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. (p) Memorandum Only Totals Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. Interfund balances and transactions have not been eliminated and the columns do not present consolidated financial information. 16 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 2) Cash and Investments Cash and investments held by the City at June 30, 1996 consisted of the following: Demand deposits $ (175,410) State of California Local Agency Investment Fund 14,034,148 United States Treasury Bills 9,867,399 Deferred compensation mutual funds 546,683. Total cash and investments held by the City $24.272,820 Cash and investments held by fiscal agent at June 30, 1996 consisted of the following: United States Treasury Bills $ 8,497,795 Mutual Funds - First American Treasury Obligation Fund 713,606 Mutual Funds - Pacific Horizons Treasury Fund 730 Mutual Funds - Pacifica Treasury Money Market Fund 5,753,728 Total cash and investments held by fiscal agent $ 14,965,859 The City and its component units are generally authorized under state statutes and local resolutions to invest in the following types of investments: Investment Tune Maximum % Savings/operating accounts 85% Certificates of deposit 60% U.S. government and agency securities 75% Government Pool 50% Money market and short intermediate term bond funds 60% Deferred compensation investments held in a fiduciary capacity for City employees include investments legally authorized for the City as well as investments in mutual Rinds. Under the California Government Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California Iaw also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. 17 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 2 Cash and Investments Continued Deposits of cities and other state or local governments are classified in three categories to give an indication of the level of credit risk assumed by the City, as follows: Category 1 - includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 - includes deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent or Depository and subject to certain regulatory requirements under State law. Category 3 - includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits. Form of Deposit Deposits held by the City: Demand deposits Category 1 2 3 $250,506 686,575 Bank Book Balance Balance 937,081 (17�) Investments of cities in securities are classified in three categories to give an indication of the level of custodial risk assumed by the entity. Category 1 - includes investments that are insured or registered or for which the securities are held by the City or the City's custodial agent (which must be a different institution other than the party through which the City purchased the securities) in the City's name. Investments held "in the City's name" include securities held in a separate custodial or fiduciary account and identified as owned by the City in the custodian's internal accounting records. Category 2 - includes uninsured and unregistered investments for which the securities are held in the City's name by the dealer's agent (or by the trust department of the dealer if the dealer was a financial institution and another department of the institution purchased the securities for the City). Category 3 - includes uninsured and unregistered investments for which the securities are held by the dealer's trust department or agent, but not in the City's name. Category 3 also includes all securities held by the broker-dealer agent of the City (the party that purchased the securities for the City) regardless of whether or not the securities are being held in the City's name. 18 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) Cate�ory 1 2 3 Investments held by the City: U.S. Treasury Bills $ 9,867,399 Investments held by fiscal agent: U.S. Treasury Bills 8,497,795 $18365,194 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund Investment in deferred compensation mutual funds Market Carrying Contract/ Amount Value 9,867,399 9,905,599 8,497,795 8,450,126 18,365,194 18,355,725 14,034,148 14,139,689 546,683 546,683 Investments held by fiscal agent not subject to categorization: Investments in mutual funds: First American Treasury Obligation Fund 713,606 713,606 Pacific Horizons Treasury Fund 730 730 Pacifica Treasury Money Market Fund _5,753,728 5,753,728 $39,414089 39,510,161 The management of the State of California Pooled Money Investment Account (generally referred to as "LAIF") has indicated to the City that as of June 30, 1996 the carrying amount (at amortized cost) of the pool was $26,781,148,920 and the estimated market value of the pool (including accrued interest) was $26,982,550,842. The City's proportionate share of the pool's market value (as determined by LAIF) as of June 30, 1996 was $14,139,689. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government- sponsored enterprises, and corporations. 19 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (3) ProneM 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 which are received from the County within sixty days after year end. Lien date March 1 Levy date June 30 Due dates November 1 and February 1 Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary sources of revenue comes from property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Agency has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. 20 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (4) Fixed Assets A summary of changes in general fixed assets for the year ended June 30, 1996 are as follows: Total $21.7773 429 8,435.970 2,958,750 257,304 27,507,953 * These adjustments reconcile General Fixed Assets to a physical inventory performed as of June 30, 1995 by a fixed asset appraisal firm. (5) General Loner -Term Debt Long -Term in general long-term debt for the year ended June 30, 1996 were as follows: Balance at Balance at July 1, 1995 Additions Deletions June 30, 1996 City: Compensated absences payable Balance at - 10,461 Balance at RDA Project Area No. 1: Enie 30, 1995 Additions Retirements Adjustments* .lune 30. 1996 Land $ 8,041,393 8,286,267 2,958,750 - 13,368,910 Equipment and furniture 696,060 73,743 - 288,769 1,058,572 Vehicles 378,783 59,292 - 37,307 475,382 Leasehold improvements 201,070 - W - 201,070 Buildings 12,456,123 1.6,668 (68,772 12,404,019 Total $21.7773 429 8,435.970 2,958,750 257,304 27,507,953 * These adjustments reconcile General Fixed Assets to a physical inventory performed as of June 30, 1995 by a fixed asset appraisal firm. (5) General Loner -Term Debt Long -Term in general long-term debt for the year ended June 30, 1996 were as follows: Balance at Balance at July 1, 1995 Additions Deletions June 30, 1996 City: Compensated absences payable $ 309,279 - 10,461 298,818 RDA Project Area No. 1: Tax allocation bonds 34,800,000 - 805,000 33,995,000 Housing tax allocation bonds - 17,721,486 - 17,721,486 Pass-through agreements payable: Due to County of Riverside 10,517,138 - - 10,517,138 Desert Sands Unified School District 1,904,660 - 628,000 1,276,660 Coachella Valley Unified School District 12,271,885 - 474,517 11,797,368 Advances from other funds* 2,340,443 234,044 - 2,574,487 RDA Project Area No. 2: Tax allocation bonds 5,730,000 - 105,000 5,625,000 Housing tax allocation bonds - 4,733,514 - 4,733,514 Due to County of Riverside 1,055,549 352,888 - 1,408,437 Advances from other funds* 3,708,514 370,851 - 4,079,365 Financing Authority: Revenue bonds_ 8,360,000 160,000 8,200,000 Total $80,997,468 23,412,783 2,182,97.8 102,227,273 * Advances from other funds are monies owed by the La Quinta Redevelopment Agency to the City of La Quinta, which also include interest accrued on the advances. 21 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 6 Tax Allocation Bonds As of June 30, 1996, the following issuances of Tax Allocation Bonds were outstanding: Series 1991 La Quinta Redevelopment Project Tax Allocation Bonds, Series 1991, were issued by the Agency, October 1, 1991, in the amount of $8,700,000 for Project Area No. 1. Interest is payable semi-annually, on March 1, and September 1 of each year commencing March 1, 1992. Interest rates are 6.375% per annum. Term Bonds maturing on September 1, 2014 are subject to mandatory sinking fund redemption, in whole or in part, on September 1, 2010 and on each September 1, thereafter, through September 1, 2014, at a prepayment price equal to 100% of the principal amount plus accrued interest. A surety agreement has been purchased to satisfy the bond reserve requirement. The amount of principal outstanding on the 1991 Tax Allocation Bonds payable at June 30, 1996 was $7,925,000. Series 1992 La Quinta Redevelopment Project Tax Allocation Bonds, Series 1992, were issued by the Agency, December 1, 1992, in the amount of $5,845,000 for Project Area No. 2. Interest is payable semi-annually on June 1 and December 1 of each year, commencing June 1, 1993. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. Interest payments range from 5% to 6.9% per annum. The bonds maturing on or after December 1, 1996 are subject to mandatory redemption in part without premium on June 1, 1996. Under the terms of the bond, the maximum annual debt service amount of $510,065 excluding the principal amount of the proceeds of the bonds held in the escrow fund, is to be set aside in reserve funds unless the Agency elects to maintain the reserve requirement by obtaining a letter of credit for the account. As of June 30, 1996, the amounts deposited in the reserve and escrow funds were $391,279 and $2,457, respectively. The principal balance of outstanding bonds at June 30, 1996 was $5,625,000. 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. 22 CITY OF LA QUINTA Notes to the Financial Statements (Continued) ,(6) Tax Allocation Bonds, (Continued) Interest rates on the bonds ranges from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. 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, 1996 is $26,070,000. A portion of the bond proceeds, in the amount of $27,922,526, were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1989 and 1990 Tax Allocation Bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. As of June 30, 1996, $6,705,000 and $17,010,000 of the 1989 and 1990 defeased bonds are outstanding, respectively. (7) 1995 Housing Tax Allocation Bonds La Quinta Redevelopment Project Areas No. 1 and 2 1995 Housing Tax Allocation Bonds were issued by the Agency July 1, 1995, in the amount of $22,455,000 to increase, improve and/or preserve the supply of low and moderate income housing in the City. Interest is payable semi-annually on March 1 and September 1 of each year commencing March 1, 1996. Interest payments range from 4% to 6% per annum. Term Bonds maturing on September 1, 2025 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2011 and on each September 1 thereafter, through September 1, 2025, at a price equal to the principal amount 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, 1996 is $22,455,000. 23 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (8) 1991 Local Agency -Revenue _ Bonds, Series 1991 La Quinta Financing Authority Local Agency Revenue Bonds, Series 1991, were issued on December 1, 1991 by the Financing Authority in the amount of $8,515,000 to finance construction of the new Civic Center. Interest is payable semi-annually on October 1 and April 1 of each year commencing April 1, 1992. Interest payments range from 5.25% to 6.2% per annum. The bonds maturing on or before October 1, 2000 are not subject to optional redemption prior to maturity; however, bonds maturing on or after October 1, 2001 are subject to optional redemption, as a whole or in part, on any interest payment date on or after October 1, 2000, at a redemption price equal to the principal amount, plus accrued interest, plus a premium of .5% to 2%. Term bonds maturing on October 1, are subject to mandatory sinking fund redemption in part or in whole, on October 1, 2004 and on each October 1, thereafter, through October 1, 2018, at a prepayment equal to 100% of the principal amount plus accrued interest. Under the term of the issue, $704,718, is to be set aside in a reserve account. A total of $713,137 was set aside as of June 30, 1996. The principal balance of outstanding bonds at June 30, 1996 was $8,200,000. (9) Due to County of Riverside Proiect Area No. I Based on an agreement amended December 21, 1993 between the Agency, the City of La Quinta, and the County of Riverside (County), the Agency will pay to the County $10,517,138 from tax increment revenue relating to Project Area No. 1. This agreement is in consideration of the tax revenues lost by the County as a result of the formation of Project Area No. 1. The tax increment is to be paid to the County over a payment schedule through June 30, 2006 in annual amounts ranging from $386,764 to $2,190,473. Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1996 was $10,517,138. 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 Agency is required to begin repayment in the year in which tax increment reaches $5,000,000 in ten equal annual installments. Interest does not accrue on this obligation. The balance at June 30, 1996 was $1,408,437. 24 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (10) Notes Payable to Desert Sands Unified School District Based on an agreement dated June 21, 1988 between the Agency, the City of La Quinta and the Desert Sands Unified School District (District), the Agency identified all tax increment revenue associated with the District for Project Area No. 1. The tax increment is paid to the District over a payment schedule through July 1, 1998 in amounts ranging from $21,505 to $663,825 for a total amount of $4,132,020. Alternatively, such tax increment revenues plus interest accrued required by this agreement may be retained by the Agency to pay on behalf of the District principal and interest on loans, construction projects or money advanced to finance a sports complex and related amenities as specified by the District. Tax increment payments outstanding at June 30, 1996 totaled $1,276,660. (11) Notes Payable to Coachella Valla 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 of a portion of tax increment revenue associated with properties within District confines. Such payments are subordinate to other indebtedness of the Agency incurred in futherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012, in amounts ranging from $474,517 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 1996 totaled $11,797,368. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school busses or expansion or rehabilitation of current facilities. (12) Advances To and From Other Funds The following represents a summary of the various transactions between the City of La Quinta and the La Quinta Redevelopment Agency, accounted for as advances from the City: Balances at Balances at July 1, 1995 Proceeds Repayments June 30 1996 Agency expenditures incurred by the City: Project Area No. 1 $2,340,443 234;044 - 2,574,487 Project Area No. 2 3,708,514 370,851 - 4,079,365 Total $6,048,957 604?895 - 6.653,852 There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. In addition, the Agency elected to borrow $511,903, and $39,135 from Project Area No. 1 and Project Area No. 2, respectively, from the Low Income Housing Funds to make the ERAF payment in fiscal year ended June 30, 1994. The Redevelopment Agency Project Area No. 1 and Project Area No. 2 Debt Service Funds will repay the Low Income Housing Special Revenue Funds. The Agency has ten years to repay this loan and has elected to make repayment in the tenth year (2003-04). 25 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (13) Debt Service Requirements to Matur�y_ The minimum annual requirements (including sinking fund requirements) to amortize the long-term debt of the City as of June 30, 1996 are as follows (advances payable to the City and the pass-through obligation owed by Project Area No. 2 to the County have been excluded since minimum annual debt service payments have not been established): RDA Pass-through Agreements PA No. 1 Redevelopment Agency RDA Financing Project Area No. 1 and No. 2 Project Area No. I PA No. 2 Authority Desert Coachella 1995 Housing Tax Tax Tax Revenue Sands Valley Year Tax Allocation Allocation Allocation Bonds Unified Unified County Ending Allocation Series Series Series Series School School of June 30 Bonds 1991 1994 1992 1991 District District Riverside Total 1996-97 $ 1,286,215 723,810 2,629,851 503,607 697,570 707,650 526,560 386,764 7,462,027 1997-98 1,594,915 723,988 2,632,040 502,127 697,987 569,010 580,683 773,528 8,074,278 1998-99 1,591,790 723,210 2,625,330 510,065 697,623 - 621,976 773,528 7,543,522 1999-00 1,592,570 721,475 2,624,696 501,805 696,407 649,927 773,528 7,560,408 2000-01 1,592,187 723,625 2,624,885 508,265 694,413 670,817 1,803,705 8,617,897 2001-02 1,590,690 724,500 2,620,315 503,500 696,467 684,233 1,803,705 8,623,410 2002-03 1,592,820 719,259 2,620,855 508,100 697,398 697,918 1,803,705 8,640,055 2003-04 1,588,538 722,744 2,599,465 501,550 692,327 711,877 2,190,473 9,006,974 2004-05 1,587,990 719,794 2,612,140 509,490 690,766 726,114 2,190,473 9,036,767 2005-06 1,590,890 720,409 2,597,700 505,890 692,479 740,636 29190,473 9,038,477 2006-07 1,645,502 719,431 29593,456 506,400 692,861 755,449 - 6,913,099 2007-08 1,646,470 716,860 2,590,816 505,650 6919914 770,558 6,922,268 2008-09 1,645,125 717,535 2,584,232 503,850 6899636 785,968 - 6,926,346 2009-10 1,641,540 716,297 2,578,160 506,000 6909863 8019688 - 6,934,548 2010-11 19640,840 713,080 2,571,868 5069750 690,426 817,722 - 6,940,686 2011-12 1,6419650 712,720 2,569,442 506,100 688,328 834,076 - 69952,316 2012-13 196389750 714,959 29560,155 509,050 684,566 421,166 - 6,528,646 2013-14 19638,300 709,799 - 505,250 683,976 - - 3,537,325 2014-15 19635,150 712,079 - 505,050 686,225 - 3,538,504 2015-16 1,634,150 - 503,100 6819313 - 2,818,563 2016-17 1,630,150 509,400 684,072 - 2,823,622 2017-18 1,632,850 508,250 679,339 - - 2,820,439 2018-19 19627,100 - - 681,945 - - 2,309,045 2019-20 1,6279750 - - - - 1,627,750 2020-21 1,6249500 - - - 1,624,500 2021-22 1,622,200 - - - 1,622,200 2022-23 1,620,550 - - - - 1,620,550 2023-24 1,619,250 - - - - - 1,619,250 2024-25 1,613,150 - - - 1,6139150 2025-26 1,611,950 1,61 1,950 Principal and interest 48,245,532 13,655,574 44,235,406 11,129,249 15,878,901 1,276,660 11,797,368 14,689,882 160,908,572 Less: Interest 25.790,532 5,730,574 18,I65,406 _5,504,249 7,678,901 4,172,744 67,042,406 Total principal$22,455,000 7,925.000 26,070,000 _5,625,000 8,200,000 1,276,660 11,797,368 10,517,138 93,866,166 26 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (14) Debt Without Governmental Commitment The City of La Quinta has entered into the sale of Improvement Bonds issued pursuant to the California State Improvement Act of 1915. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benefited by the projects. The Bonds are not general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The City is in no way liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments, forwarding the collections to bondholders, and does not constitute an obligation of the City; they are not reflected in the general long-term debt account group in the accompanying financial statements. The following is a summary of improvement bonds outstanding at June 30, 1996: 15 Deserves and Designations of Fund Balances The City establishes "reserves" of fund equity to segregate amounts representing noncurrent assets which are not considered expendable available financial resources, and amounts legally restricted by parties external to the City. Fund "designations" also may be established by the City to indicate plans for the use of financial resources. Fund balances at June 30, 1996 consisted of the following reserves and designations: Assessment Assessment Assessment Assessment Assessment District No. 88-1 District No. 89-2 District No. 90-1 District No. 9 1 -1 District No. 92-1 Proceeds $855,984 1,153,974 1,227,155 2,240,866 1,880,891 Maturity Date 9/2/04 9/2/04 9/2/05 9/2/06 9/2/08 Interest Rate 6.70%-7.25% 6.45%-6.75% 6.5-7.0% 6.70%-6.80% 2.5%-2.7% Amount outstanding 1,106,873 Advances to other funds 6,653,852 551,038 - at June 30, 1996 $610,000 770,000 890,000 1,765,000 1,640,000 15 Deserves and Designations of Fund Balances The City establishes "reserves" of fund equity to segregate amounts representing noncurrent assets which are not considered expendable available financial resources, and amounts legally restricted by parties external to the City. Fund "designations" also may be established by the City to indicate plans for the use of financial resources. Fund balances at June 30, 1996 consisted of the following reserves and designations: 27 Total General Special Debt Capital (Memorandum Fund Revenue Service Pr_ _accts Only) Reserved for: Bond reserve requirement $ - - 1,106,873 - 1,106,873 Advances to other funds 6,653,852 551,038 - - 7,204,890 Prepaid expenses 24,123 - 250,015 22,500 296,638 Deposits 2,073 - - - 2,073 Notes receivable - 95,445 - - 95,445 TDC owner participation agreement - - - 1,820,357 1,820,357 Subtotal 6,680,048 _646,483 1356,888 1,842,857 I0,526,276 27 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (15) Reserves and Designations of Fund Balances, (Continued) (16) Detained Earnings As of June 30, 1996, all of the retained earnings in the proprietary funds was unreserved. As provided under generally accepted accounting principles, reserves are only established in proprietary funds for equity legally restricted by parties external to the governmental unit. 17 Deferred Com ensation The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. As of June 30, 1996, the deferred compensation liability included in an Agency Fund was $546,683 carried at market value. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights, are solely the property and rights of the City, subject only to the claims of the City's general creditors. Because the City handles these funds in a fiduciary capacity, the Deferred Compensation Fund is reported as an Agency Fund in the accompanying financial statements. 28 Total General Special Debt Capital (Memorandum Fund Revenue Service Projects Only) Unreserved: Designated for: Debt service - - 2,381,316 - 2,381,316 Emergency reserve 3,414,473 - - - 3,414,473 Cash flows 1,300,000 - - - 1,300,000 Operations/projects/transfers 971,554 17,001,380 - 6,439.537 24,412,471 Subtotal 5,_686,_027 17,001.380 2,381,316 6,439,537 31,508,260 Total fund balances $12,366,075 17,647,863 3,738,204 8,282,394 42,034536 (16) Detained Earnings As of June 30, 1996, all of the retained earnings in the proprietary funds was unreserved. As provided under generally accepted accounting principles, reserves are only established in proprietary funds for equity legally restricted by parties external to the governmental unit. 17 Deferred Com ensation The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. As of June 30, 1996, the deferred compensation liability included in an Agency Fund was $546,683 carried at market value. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights, are solely the property and rights of the City, subject only to the claims of the City's general creditors. Because the City handles these funds in a fiduciary capacity, the Deferred Compensation Fund is reported as an Agency Fund in the accompanying financial statements. 28 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 18 Cily Employees Retirement Plan Defined Benefit Pension Plan Plan Description The City of La Quinta contributed to the California Public Employees Retirement System (PERS), an agent multiple -employer defined pension plan that acts as a common investment and administrative agent for participating public entities within the State of California. The City's payroll for employees covered by PERS for the year ended June 30, 1996 was $2,595,770. The total payroll for the year was $2,769,453. All full-time City employees are eligible to participate in PERS. Part-time hourly employees do not participate in PERS. Benefits vest after five years of service. City employees who retire at or after age fifty, with five years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to the average monthly pay rate for the last twelve consecutive months. PERS also provides death and survivor's benefits. These benefit provisions and all other requirements are established by State statute and City ordinance. Employee and Employer Contribution Obligations Contributions required of City employees are paid by the City on behalf of the employees. The rates are set by statute and therefore remain unchanged from year to year. The present rates are: Member Rates as a Category Percentage of Wages Local miscellaneous members 7% The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial bases recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of PERS on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to PERS. 29 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (18) City Emptyees_ Retir_ement Pian (Defined Benefit Pension Plan), (Continued) The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1995. Neither an actuarial valuation nor an annual update as of June 30, 1996 is available at this time. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8.5 percent a year compounded annually, (b) projected salary increases of 4.5 percent a year compounded annually, attributable to inflation, (c) no additional projected salary increases attributable to seniority/merit, and (d) no post retirement benefit increases. The total overfunded pension obligation applicable to the City employees was $538,118 at June 30, 1995, as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees: Accumulated employee contribution including allocated investment earnings Employer -financed vested Employer -financed non -vested Total pension benefit obligation Net assets available for benefits at cost (Market value is $3,048,725) Unfunded (overfunded) pension benefit obligation Changes in the pension benefit obligation from last year resulted from the following: Changes in benefit provisions Changes in actuarial assumptions Total Actuarially Determined Contribution Requirements and Contribution Made $ 389,382 1,069,880 743,673 126,985 $2,329,920 2,868,038 $_(538J 1,a) PERS used the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. 30 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (18) City Employees Retirement Plan (Defined Benefit Pension Plan;), (Continued, ) According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost method in which the employer's total normal cost is expressed as a level percent of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the year 2000 for prior service benefits and current service benefits. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. The contribution to PERS for the year ended June 30, 1996 of $424,526 was made in accordance with actuarially determined contribution rates provided to the City before the beginning of the fiscal year and based upon an actuarial valuation performed as of June 30, 1994. The contribution consisted of the following: Percent of Trend Information For the three years ended June 30, 1994, 1995 and 1996, the total contribution to PERS was 15.42%, 16.35%, and 16.35% respectively, of the annual covered payroll. The total contribution paid by the City included the employer contributions as well as the member contribution for which the City is contractually obligated to pay on behalf of its employees. The total contributions paid by the City was based upon actuarially determined requirements. 31 Covered Amount Pam Normal cost $401,158 15.45% Amortization of unfunded (overfunded) actuarial accrued liability 23,388 .90% Total contribution 424 546 16.35% Contribution: Employer $239,356 9.22% Employee 185,190 7.13% Total contribution $424,546 16.35% Trend Information For the three years ended June 30, 1994, 1995 and 1996, the total contribution to PERS was 15.42%, 16.35%, and 16.35% respectively, of the annual covered payroll. The total contribution paid by the City included the employer contributions as well as the member contribution for which the City is contractually obligated to pay on behalf of its employees. The total contributions paid by the City was based upon actuarially determined requirements. 31 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (18) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued) Since the required ten-year information for the City of La Quinta alone is not displayed in the California PERS annual report, this information must be disclosed in the financial statements of the City. This ten-year historical trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. However, the year ended June 30, 1987 is the first year that this actuarial information was made available by PERS. Moreover, such information for the year ended June 30, 1996 is not yet available. Until ten years of data are available, as many years as are available will be presented. Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation, thereby enhancing comparability for trend analysis purposes. Available trend information (in hundreds) is summarized as follows: 32 (6) (4) Unfunded Pension Actuarial (1) (2) (3) Unfunded (5) Benefit Obligation Valuation Net Assets Pension Percentage Pension Benefit Annual as a Percentage as of Available Benefit Funded Obligation Covered of Covered Payroll June 30 for Benefits Obligation U/Q (2)-(l) Payroll (1)/ U5 1987 $ 2,664.0 $ 1,886.9 140.1% $ -757.2 $ 7,172.1 -10.6% 1988 3,745.5 2,614.0 143.3 -1,131.5 7,862.4 -14.4 1989 5,467.8 4,266.4 128.2 -1,201.6 12,012.6 -10.0 1990 7,770.3 6,508.0 119.4 -1,262.3 14,873.3 -8.5 1991 10,279.3 8,550.1 120.2 -1,729.4 19,272.4 -9.0 1992 13,911.9 14,388.6 96.7 476.6 21,837.2 2.2 1993 16,239.3 16,984.4 95.6 745.0 22,591.4 3.3 1994 23,040.2 18,562.3 124.1 -4,478.0 25,584.1 17.5 1995 28,680.3 23,299.1 123.1 -5,381.2 26,119.1 -20.6 32 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (19) Claims Payable/Self Insurance The Coachella Valley Joint Powers Insurance Authority (CVJPIA) was formed under a joint exercise of powers agreement between local governments and special districts under the sponsorship of the Coachella Valley Association of Governments for the purpose of jointly funding insurance programs. The CVJPIA is composed of twenty-five cities and one transit agency with equal governing powers and no management authority. The City of La Quinta joined the CVJPIA in order to achieve long term premium stability. Each member city must remain in the pool for three years and may be assessed up to three times their annual premium if the need arises. The likelihood of the need for excess premiums is remote given the claims history of the cities involved and the length of time necessary to settle large claims. Generally, individual claims in excess of the self-insured amount for workers' compensation and general liability (up to a maximum of $5,000,000 per incident) fall under the insurance policies purchased by the City. The CVJPIA provides for liability insurance coverage in excess of $125,000 with a maximum of $10,000,000 per claim. Subsequent to June 30, 1996, the City reduced its retention from $125,000 to $0. As of June 30, 1996, the City's year end deposit with CVJPIA exceeded its liability for claims payable and therefore no liability for claims payable has been recorded in the general long-term debt account group. In addition, for the past two years, claim payments have not exceeded the amount of applicable insurance coverage. 2I 0) Accumulated Fund Deficits The Special Revenue Quimby Fund reported a deficit fund balance of $5,337. The Capital Project redevelopment Agency - Project Area No. 1 Fund reported a deficit fund balance of $20,526. (21) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 1996 exceeded the appropriations of the following funds: Special revenue funds: South Coast Air Quality Debt service funds: Redevelopment Agency Project Area No. 2 Capital projects funds: Redevelopment Agency Project Area No. 1 33 Budget Actual Variance $ - 7,885 (7,885) 2,485,762 2,670,562 (184,800) 747,090 858,397 (111,307) CITY OF LA QUINTA Notes to the Financial Statements (Continued) 22 Commitments Under Development Agreements Washington/Adams The Agency has entered into an Owner Participation Agreement (OPA) with Washington/Adams, a California limited partnership. In this Agreement, Washington/Adams is responsible for the development of a retail center located at the intersection of Washington Avenue and Highway 111. The Agency and Washington/Adams are to share in specific infrastructure improvements, with the Agency being responsible for a maximum of $3,156,000. In addition, the Agency agrees to reimburse Washington/Adams a maximum of $575,460 for engineering design, permit fees, plan checks and inspections, and general contractor fees. As of June 30, 1996, $1,820,357 remains to be expended under this agreement for infrastructure improvement costs to be incurred in future fiscal years. (23) Contingencies Various claims and suits have been filed against the City in the normal course of operations. Although the outcome of these lawsuits is not presently determinable, in the opinion of management, the resolution of these matters will not have a material adverse effect on the financial position of the City. (24) Subsequent Events On November 15, 1996, the City of La Quinta issued $8,790,000 of lease revenue refunding bonds. The bonds were issued for the purpose of refunding the 1991 Series, Local Agency Revenue Bonds. The interest rates on the bonds range from 3.7% to 5.6%. Interest is payable semi-annually on April 1 and October 1 of each year commencing on April 1, 1997. (25) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 1996 are as follows: 34 Current Current Interfund Interfund Receivables Receivables Capital Projects Funds: Infrastructure $10,505 - Special Revenue Funds: Quimby - 10,505 Total $10,505 10,505 34 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures which are legally required to be accounted for in a separate fund. Funds included are: The City of La Quinta has twelve Special Revenue Funds: State Gas Tax Fund - To account for gasoline allocations by the State of California. These revenues are restricted by the State to expenditures for street related purposes only. Community Service Projects Fund - To account for the accumulation of resources for parks and other community services projects. Capital projects to be funded from this source will be budgeted and expended in a separate capital project fund. Federal Assistance Fund - To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. Lightiniz and Landscape Special Assessment District 89-1 Fund - To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. Quimby Fund - To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. Village Parking Fund - To account for the accumulation of resources provided through developer fees to facilitate parking and traffic flow in that area of the City known as "The Village". Capital projects funded from this source will be budgeted in a separate capital projects fund. South Coast Air quality Fund - To account for contributions from the South Coast Air Quality Management District. Use of such contributions is limited to reduction and control of airborne pollutants. Urban Forestry Grant Fund - To account for State funds. Uses of such funds from the State Department of Forestry are limited to projects approved by the Grantor. Redevelopment Agency, 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. Redevelopment Agency, Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds - To account for bond proceeds and expenditures of bond financed low and moderate income housing programs. 35 CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 1996 Community Lighting State Service Federal and Village Gas Tax Projects Assistance Landscape Ouimby Parking Assets Cash and investments $33,765 595,094 64,278 184,380 - 24,181 Cash with fiscal agent - - - - - - Accounts receivable - - - - - - Interest receivable 365 6,435 698 13995 5,168 262 Notes receivable - - - - - - Due from other funds - - - - - - Due from other governments - - - 23,489 - - Land held for resale - - - - - - Advances to other funds - - - - - - Total assets $34,130 601,529 64,976 209,864 5,168 24,443 Liabilities and Fund Balances Liabilities: Accounts payable $ - - - - - - Deposits payable - - - 34,840 - - Contracts payable - - - - - - Due to other funds - - 10,505 - Total liabilities - - - 34,840 10,505 - Fund balances: Reserved for: Advances to other funds - - - - - - Notes receivable - - - - - - Land held for resale - - - - - - Unreserved: Designated for operations/ projects/transfers 34,130 601,529 64,976 175,024 (5,337 24,443 Total fund balances (deficit) 34,130 601,529 64,976 175,024 (5,337 24,443 Total liabilities and fund balances $34,130 601,529 64,976 209.864 5,168 24,443 36 . Low/ Low/ Urban Low Income Low Income Moderate Moderate South Coast Forestry Housing- Housing- Bond- Bond - Air Quality Grant PA No.I PA No. 2 PA No. 1 PA No. 2 EXHIBIT A-1 Totals 1996 1995 24,334 - 3,420,080 950,394 372,804 21,600 5,690,910 2,902,738 - - - - 9,326,180 2,476,802 11,802,982 - - - - - 5,951 - 5,951 597 264 - 37,090 10,297 3,549 234 66,357 - - - 67,120 - 28,325 - 95,445 67,120 - - - - - - - 217,891 - - - - - - 23,489 105,996 - - - - - - - 361,340 511,903 39,135 - 551,038 551,038 24,598 - 4,036,193 999.826 9,736,809 2,498,636 18,236,172 4;206,720 - - 6,324 1,950 6,985 2,807 18,066 5,600 _ - - - 14,142 - 48,982 34,840 - - 510,756 - - - 510,756 - 10.505 217.891 517,030 1,950 21.127 2.807 588.309 258.331 - - 511,903 39,135 - - 551,038 551,038 - - 67,120 - 28,325 - 95,445 67,120 - - - - - - - 361,340 24,598 2,940,090 958,741 9,687,357 2.495,829 .17,001,380 2,968,891 24,598 - 3,519,113 997,876 9,715,682 2495,829 17,647,863 3,948,389 24,598 4,036,193 999.826 9,736,809 2.498,636 18.236,172 4,206,720 37 CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1996 Community Lighting State Service Federal and Village Gas Tax Projects assistance Landscape Ouimby Parking Revenues: Taxes $ - - - - - - Developer fees - - - 3,190 - Intergovernmental 323,361 - 1,802 - - - Interest - 32,145 3,113 - 26,192 1,171 Miscellaneous - - - - - - Special assessments - - - 991,123 - - Rental income - - - - - - Sale of land - - - - - - Total revenues 323,361 32,145 4,915 991,123 29,382 1,171 Expenditures: Current: Planning and development Public works Capital outlay Debt service: Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds (net of issuance costs) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances (deficit) at end of year 114,722 - - 872,591 - - - - 4,611 - 114,722 - 877,202 - T 208.639 32,145 4,915 113,921 29,382 1,171 (200,000) (273,078) (9,254) (820,194) - (200,000 -} (273,078 - (9,254 (820,194 8,639 (240,933) 4,915 104,667 (790,812) 1,171 25,491 842,462 60,061 70,357 785,475 23,272 $ 34,130 601,529 64,976 175,024 (5,33.7] 24,443 38 EXHIBIT A-2 7,885 - 523,100 7,885 - 523,100 Totals 122,212 4,642,724 159,057 5,454,978 - - - 987,313 1,909,257 1,977,010 3,886,267 - - 4.611 122,212 6,551,981 2,136,067 10,333,169 1995 2,813,394 81,909 421,507 215,250 10,870 823,950 4,366,880 4,405,909 1,168,522 607,820 6,182,251 12,170 2,091,562 1,713,153 (5,577,538 (2,029,172 (1,399,652 (1,815,371) - - 1,810,402 43,313 - - 1,853,715 785,361 (1,101,754) (2,168,530) (1,812,686) (43,896) (6,429,392) (1,526,230) 17,105,906 4,568,897 21,674,803 - 708,648 (2,125,217 15,293220 4,525,001 1717099,1267� fy 40,869) 12,170 - 2,800,210 (412,064) Low/ Low/ 12,428 718,903 Urban Low Income Low Income Moderate Moderate 3,519,113 South Coast Forestry Housing- Housing- Bond- Bond - Air Qualitv Grant PA No. 1 PA No. 2 PA No. 1 PA No. 2 1996 - - 2,338,108 614,228 - - 2,952,336 - - - - - - 3,19C 19,072 - - - - - 344,235 983 - 156,539 24,867 405,101 106,895 757,006 - - 1,703 - 241,283 - 242,986 - - - - - - 991,123 - - - - 328,059 - 328,059 - 118,312 1,196.270 - 1,314,582 20,055 2,614.662 1,835,365 974,443 106,895 6,933.517 7,885 - 523,100 7,885 - 523,100 Totals 122,212 4,642,724 159,057 5,454,978 - - - 987,313 1,909,257 1,977,010 3,886,267 - - 4.611 122,212 6,551,981 2,136,067 10,333,169 1995 2,813,394 81,909 421,507 215,250 10,870 823,950 4,366,880 4,405,909 1,168,522 607,820 6,182,251 12,170 2,091,562 1,713,153 (5,577,538 (2,029,172 (1,399,652 (1,815,371) - - 1,810,402 43,313 - - 1,853,715 785,361 (1,101,754) (2,168,530) (1,812,686) (43,896) (6,429,392) (1,526,230) 17,105,906 4,568,897 21,674,803 - 708,648 (2,125,217 15,293220 4,525,001 1717099,1267� fy 40,869) 12,170 - 2,800,210 (412,064) 9,715,682 2,495,829 13,699,474 (2,556,240) 12,428 718,903 1,409940 - _3,,948,389 6,504.029 24,598 3,519,113 997,876 9,715,682 2&5 829 17,647,863 3,948389 ME CITY OF LA QUINTA Special Revenue Funds State Gas Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Intergovernmental Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT A-3 Variable 114,722 Favorable 1995 Budget Actual (Unfavorable) Actual $304,900 323,361 18,461 302,301 304,900 323,361 18,461 302,301 314,722 114,722 200,000 286,632 314,722 114,722 200,000 286,632 (9,822) 208,639 218,461 15,669 Eli] -20(0000) (200,000) - (200,000) (200,000) (9,822) 8,639 18,461 15,669 25,491 25,491 - 9,822 15,669 34,130 18,461 25491 CITY OF LA QUINTA Special Revenue Funds Community Service Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Interest Total revenues Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT A-4 863 533 (273078) 590,455L 814,862 863 533 273 078 590,455 (810,862) (841,033) (240,933) 600,100 (742,349) 8422,462 842,462 - 1,584,811 1 429 601,529 600,100 842,462 41 Variable Favorable 1995 Budget Actual (Unfavorable) Actual 22,500 32,145 9,645 68,513 22,500 32,145 9,645 68,513 22,500 32,145 9,645 68,513 863 533 (273078) 590,455L 814,862 863 533 273 078 590,455 (810,862) (841,033) (240,933) 600,100 (742,349) 8422,462 842,462 - 1,584,811 1 429 601,529 600,100 842,462 41 CITY OF LA QUINTA Special Revenue Funds Federal Assistance Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Intergovernmental Interest Total revenues Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT A-5 (2,377) 4,915 Variable 60,061 60,061 - 127,655 Favorable 1995 Btid et Actual (Unfavorablc) Actual $137,241 1,802 (135,439) 105,930 - 3,113 3 X 13 372 137,241 4,915 (132,326) 106,302 137,241 4,915 (132,326) 106,302 - - - 260,361 13i 9,618) - 139,6 3 843( .4,257) 139,618 139,61817( 3,896) (2,377) 4,915 7,292 (67,594) 60,061 60,061 - 127,655 57 684 64,976 7,292 60,061 E,W CITY OF LA QUINTA Special Revenue Funds Lighting and Landscaping Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Interest Miscellaneous Special assessments Total revenues Expenditures: Current: Public works Debt Service: Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances (deficit) at end of year EXHIBIT A-6 1,014,400 Variable 141,809 881,890 - Favorable 1995 Budget Actual (Unfavorable) Actual $ 3,000 (3,000) 3,149 - - - 5,803 1,011,400 991,123 (29,277 823,950 1,014,400 991,123 (23,277) 832,902 1,014,400 872,591 141,809 881,890 - 4,611 (4.611) - 1,014,400 877,202 137,198 881,890 - 113,921 113,9214S 8,988) 158,788) —(2.,.254) 149,534 - (158,788) —(2,.254) 149,534 - (158,788) 104,667 263,455 (48,988) 70.357 70,357 - 119,345 588,431) 175,024 263,455 70,357 43 CITY OF LA QUINTA Special Revenue Funds Quimby Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Developer fees Interest Total revenues Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances (deficit) at end of year EXHIBIT A-7 53,200 29,382 83[ 9.753)82(. X194) (K2,.753) 820 194 (786,553) (790,812) 785,475 785,475 L-CL,07J8 —05.337) .E! (22.818) 98,850 - 525,000 19,5591� 5,500) 19,559 509,500 Variable 608,350 - 177,125 Favorable 1995 Budge Actual (Unfavorable) Actual $ 51,400 3,190 (48,210) 81,909 1,800 26,192 24,392 16,941 53,200 29,382 (23,818) 98,850 53,200 29,382 83[ 9.753)82(. X194) (K2,.753) 820 194 (786,553) (790,812) 785,475 785,475 L-CL,07J8 —05.337) .E! (22.818) 98,850 - 525,000 19,5591� 5,500) 19,559 509,500 (4,259) 608,350 - 177,125 14 259) 78_ 5.,475 CITY OF LA QUINTA Special Revenue Funds Village Parking Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Interest Total revenues Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year EXHIBIT A-8 Variable Favorable 1995 Budget Actual LL nfavorable) Actual 1,300 1,171 (129) 1,188 1,300 1,171 (L2 9) 1,188 45 1,300 1,171 (129) 21272 23,272 - 24 572 24,443 129 1,188 22,084 23,272 EXHIBIT A-9 CITY OF LA QUINTA Special Revenue Funds South Coast Air Quality Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Variable Favorable 1995 Binet Actual Unfavorable Actual Revenues: Intergovernmental $ - 19,072 19,072 13,276 Interest 1,600 983 L6I7) 1,274 Total revenues 1,600 20,055 18,455 14,550 Expenditures: Current: Planning and development 7,885 7( ,885) 25.000 Total expenditures - 7,885 (7,885) 25,000 Excess (deficiency) of revenues over (under) expenditures 1,600 12,170 10,570 (10,450) Fund balances at beginning of year 12,428 12,428 - 22,878 Fund balances at end of year 14.028 24,598 10.570 12,428 46 CITY OF LA QUINTA Urban Forestry Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Intergovernmental Total revenues Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year EXHIBIT A-10 47 Variable Favorable 1995 Budget Actual (Unfavorable) Actual $.L55,699 - 25( 5,699) - 255,699 - (25699) - 255,699- 25( 5 699) - (255,699) - 255,699 - 25( 5,699) - 255,699 - 47 CITY OF LA QUINTA Special Revenue Funds Low Income Housing Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Taxes Interest Miscellaneous Sale of land Total revenues Expenditures: Current: Planning and development Capital Outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT A-11 866,531 523,100 Variable 4,177,352 - - Favorable 1995 BudLyet Actual (Unfavorable) Actual 2,152,869 $2,303,100 2,338,108 35,008 2,301,158 65,000 156,539 91,539 52,485 1,300 1,703 403 5,067 650,000 118,312 531.688 - 3,019,400 2,614.6624( 04.738) 2,358,710 866,531 523,100 343,431 4,177,352 - - - 607,820 866,531 523,100 343,431 4 785,172 2,152,869 2,091.5626( 1,307) 4 ) - 1,810,402 1,810,402 - 1,197,029) 1 101 754 95,275 - (1,197.029 708,648 1,905,677 - 955,840 2,800,210 1,844,370 (2,426,462) 718,903 718,903 - 3,145,365 1 674 743 3,519,113 1,844,370 718,903 48 CITY OF LA QUINTA Special Revenue Funds Low Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Taxes Interest Sale of land Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): EXHIBIT A-12 Variable Favorable Budget Actual (Unfavorable) $ 508,500 614,228 105,728 50,000 24,867 (25,133) 1200,000 1.,196,270 (3.730) 1,758,500 1,835,365 76,865 173,374 122,212 51,162 173,374 122,212 51,162 1,585.126 1,713,153 128,027 Operating transfers in - 43,313 43,313 Operating transfers out (1408,955) (2,16M301 1240,425 Total other financing sources (uses) [3,408,955) (2,125,217) 1,283,738 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (1,823,829) (412,064) 1,409,940 1,409,940 S {413,8891 997,876 Fund balances at beginning of year Fund balances (deficit) at end of year 1,411,765 1,411,765 1995 Actual 512,236 71,328 583,564 203,557 203,557 380,007 (265,611 (265,611 ) 114,396 1,295,544 1,409,940 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Interest Miscellaneous Rental income Total revenues Expenditures: Current: Planning and development Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers out Proceeds of bonds payable Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year EXHIBIT A-13 5,769,122 4,642,724 1,126,398 - 1,950,000 1,909,257 40,743 7,719,122 6,551,981 1167,141 (7,107,122) (5,577,538) 1,529,584 - (1,812,686) (1,812,686) - 20,1.24,370 17,105,906 (3,018,4643 20,124,370 15,293,220 (4,831,150) 13,017,248 9,715,682 (3,301,566) - 113,017.248 9,71502 (3.,301.566) - 50 Variable Favorable 1995 Budget Actual (Unfavorable) Actual $ - 405,101 405,101 - 186,000 241,283 55,283 - 426,000 328,059 (97,941) - 612.000 974,443 362.443 - 5,769,122 4,642,724 1,126,398 - 1,950,000 1,909,257 40,743 7,719,122 6,551,981 1167,141 (7,107,122) (5,577,538) 1,529,584 - (1,812,686) (1,812,686) - 20,1.24,370 17,105,906 (3,018,4643 20,124,370 15,293,220 (4,831,150) 13,017,248 9,715,682 (3,301,566) - 113,017.248 9,71502 (3.,301.566) - 50 CITY OF LA QUINTA Special Revenue Funds Low/Moderate Bond - Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual. Year ended June 30, 1996 Revenues: Interest Total revenues Expenditures: Current: Planning and development Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers out Proceeds of bonds payable Total other financing sources (uses) Excess (deficiency) of revenues over expenditures and other sources (uses) Fund balances at beginning of year Fund balances at end of year EXHIBIT A-14 2,590,854 2,495,829 (95,025) - 2 590 854 2,495,829 (95,025) - 51 Variable Favorable 1995 Budget Actual (Unfavorable) Actual _. i 06,895 106,895 - 106,895 106,895 - 249,486 159,057 90,429 - 2,020,000 .1,977,010 42,990 - 2,269,486 2,136,067 133,419 - 12.269,486) (2,0294,172) 240,314 - (519,825) (43,896) 475,929 - 5.380,165 4,568,897(81128) - 4.860,340 4,525,001 (335,339) - 2,590,854 2,495,829 (95,025) - 2 590 854 2,495,829 (95,025) - 51 (This page intentionally left blank) 52 DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The City of La Quinta has three Debt Service Funds: Redevelopment Agency, 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. La Quinta Financing Authority Fund - To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center debt obligation. 53 EXHIBIT B-1 CITY OF LA QUINTA Debt Service Funds Combining Balance Sheet June 30, 1996 Redevelopment Redevelopment Financing Totals Agency -PA No. 1 Agency -PA No. 2 Authority 1996 1995 Assets Cash and investments $2,480,688 806,457 - 3,287,145 3,882,593 Cash with fiscal agent 729 391,796 713,606 1,106,131 529,771 Prepaid expenses 250,015 - - 250,015 - Interest receivable 26,867 9,086 - 35,953 - Total assets $2,758,299 1,207,339 713,606 4,679,244 4,412,364 Liabilities and Fund Balance Liabilities: Accounts payable $ 4,356 - - 4,356 - Accrued expenses 144,326 241,320 - 385,646 721,066 Advances from other funds 511,903 39,135 - 551,038 551,038 Total liabilities 660,585 280,455 - 941.040 1,272,104 Fund balances: Reserved for: Bond reserve requirement - 393,736 713,137 1,106,873 1,214,208 Prepaid expenses 250,015 - - 250,015 - Unreserved: Designated for debt service 1,847,699 533,148 469 2,381,316 1,926,052 Total fund balances 2,097,714 926.884 713,606 3,738,2.04 3,140,260 Total liabilities and fund balances 2 758 299 1,207,339 713,606 4,679,2.44 4,412,364 54 CITY OF LA QUINTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1996 Redevelopment Redevelopment Financing EXHIBIT B-2 Totals AP,ency-PA No. I Agency -PA No. 2 Authority 1996 1995 Revenues: Taxes $9,352,441 2,456,913 - 11,809,354 11,338,868 Intergovernmental - - 1,162 1,162 6,502 Interest 47,740 72,800 39,062 159,602 207,563 Rental income - - 571,339 571,339 699,478 Total revenues 9,400J81 81 2,529,713 611,563 12,541,457 12,252,411 Expenditures: Current: Planning and development 179,868 32,963 1,162 213,993 195,596 Debt service: Principal 805,000 105,000 160,000 1,070,000 435,000 Interest 3,050,453 915,223 536,402 4,502,078 3,343,186 Payment of advances - - - - 894,295 Payments under pass- through obligations 5,180,568 1,617,376 - 6,797,944 6,954,152 Mandated education contribution - - - - 551,170 Total expenditures 9,215,889 2,670,562 697,564 I2,584,015 12,373,399 Excess (deficiency) of revenues over (under) expenditures 184,292 140 8498f G,U01) 42 558 .120 988 Other financing sources (uses): Operating transfers in 1,104,037 183,023 - 1,287,060 817,244 Operating transfers out (601,700) (649,753) - (1,251,453) (2,462,714) Proceeds of advances 234,044 370,851 - 604,895 - Total other financing sources (uses) 736,381 (95,8791 - 640,502 (1,645,470) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 920,673 (236,728) (86,001) 597,944 (1,766,458) Fund balances at beginning of year 1,177,041 1,163 612 799,607 3,140,260 4906,718 Fund balances at end of year 52,097,714 926,884 713,606 3,738,204 3,140,260 55 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Taxes Interest Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Payment of advances Payments under pass-through obligations Mandated education contribution Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances from City Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT B-3 Variable Favorable 1995 Budget Actual (Unfavorable) Actual $9,212,250 9,352,441 75,000 47,740 9,287,250 9,400,181 140,191 9,289,918 (27,260) 94,878 112,931 9,384,796 228,000 179,868 48,132 153,754 805,000 805,000 - 200,000 3,228,614 3,050,453 178,161 1,980,982 - - - 281,013 5,606,464 5,180,568 425,896 5,979,079 - - - 512,025 9,868,078 9,215,889 652,189 9,106,853 (580,828) 184,292 765,120 277,943 1,197,029 1,104,037 (92,992) 546,624 (850,245) (601,700) 248,545 (2,462,714) 234,044 234,044 - - 580,828 736,381 155,553 (1,916,090 - 920,673 920,673 (1,638,147) 1,177,041 11.77,041 - 2,815,188 IL127,041 041 2.097,714 920,673 1,.177,041 56 CITY OF LA QUINTA Debt Service Funds Redevelopment Agency Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Taxes Interest Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Payment of advances Payments under pass-through obligations Mandated education contribution Total expenditures Excess (deficiency) of revenues over (under) expenditures EXHIBIT B-4 60,300 32,963 27,337 Variable 105,000 - 962,898 915,223 47,675 Favorable 1995 Budget Actual (Unfavorable) Actual $2,034,000 2,456,913 422,913 2,048,950 80.000 72,800 (7,200) 74,798 2,114.000 2,529,713 415,713 2,123,748 60,300 32,963 27,337 105,000 105,000 - 962,898 915,223 47,675 1,357,564 1,617,376 (259,812) 2,485,762 2,670,562 (184.800) 371.762)14-_[ _ 0,$49} 230,913 Other financing sources (uses): Operating transfers in 203,190 Operating transfers out Proceeds of advances from City 370,851 Total other financing sources (uses) 574,041 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year 183,023 (20,167) (649,753) (649,753) 370,851 - (95.879 66( 9,920} 37,340 80,000 817,726 613,282 975,073 39.145 2,562,566 (438,818) _ 270,620 270,620 202,279 (236,728) (439,007) (168,198) _1163,612 1,163,612 - 1,331,810 IL2L5.,891 891 926884 43( 007) 1,163,612 57 CITY OF LA QUINTA Debt Service Funds Financing Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Variable Favorable 1995 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 6,500 1,162 (5,338) 6,502 Interest 31,200 39,062 7,862 37,887 Rental income 696,400 571,33912( .5,061) 699,478 Total revenues 734,100 611,563 (122,537) 743,867 Expenditures: Current: Planning and development 6,500 1,162 5,338 4,502 Debt service: Principal 160,000 160,000 - 155,000 Interest 536.400 536,402 2) 544,478 Total expenditures 702,900 697,564 5,336 703,980 Excess (deficiency) of revenues over expenditures 31,200 (86,001) (117,201) 39,887 Fund balances at beginning of year 799,607 799,607 - 759,720 Fund balances at end of year 830 807 713,606 (117,201) 799,607 58 CAPITAL PROJECTS FUNDS Capital projects funds account for the financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. The City of La Quinta has six Capital Projects Funds: Sewer Assessment Districts 91-1 and 92-1 - To account for specific improvements to sewer services from property owners within the assessment area. Infrastructure Fee Fund - To account for the accumulation of resources, provided through developer fees for the acquisition, construction or improvement of the City's infrastructure as defined in Resolution 98-39. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. Capital Proiects Fund - To account for the planning, design and construction of various capital projects throughout the City of La Quinta and the Redevelopment Agency. Redevelopment Agency, Capital Projects Project Area 1 and 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. 59 CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 1996 Assessment Assessment District District 91-1 92-1 Infrastructure Assets Cash and investments $ - - 4,204,883 Cash with fiscal agent - - - Accounts receivable Prepaid expenses - - - Interest receivable - - 42,930 Due from other funds - - 10.505 Total assets_ - 4,258,318 Liabilities and Fund Balances Liabilities: Accounts payable - Accrued expenses - - - Deposits payable - - 52,100 Retentions payable - - - Due to other funds - - - Total liabilities - - 52,100 Fund balances: Reserved for: Prepaid expenses - - - TDC owner participation agreement - - - Unreserved: Designated for operations/projects - - 4,206,218 Total fund balances - - 4,206,218 Total liabilities and fund balances - 4,258,318 W EXHIBIT C-1 Capital Redevelopment Redevelopment 219,852 Totals Improvement AP-encX-PA No. 1 Agency -PA No. 2 1996 1995 331,874 17,859 1,971,593 6,526,209 3,701,440 - - 2,056,746 2,056,746 1,953,166 - - 63,000 63,000 116,174 - 15,000 7,500 22,500 - - 193 21,663 64,786 - - - - 10,505 150.892. 331,874 33,052 4,120,502 8,743,746 5,921,672 224,510 32,853 23,800 281,163 16,860 - 20,725 - 20,725 - - - 52,100 52,100 107,364 - 107,364 - 331,874 53,578 23,800 461,352 219,852 - 15,000 7,500 22,500 - - - 1,820,357 1,820,357 1,820,357 - (35,526) 2,268,845 6,439,537 3,881,463 - (20,526) 4,096,702 8,282,394 5,701,820 331,874 33,052 4,120,502 8,743,746 5,921,672 CS CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1996 Revenues: Developer fees Intergovernmental Interest Miscellaneous Litigation settlement proceeds Total revenues Expenditures: Current: Planning and development Capital outlay Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances Total other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year Assessment Assessment District District 91-1 92-1 Infrastructure $ - - 1,603,048 154 50 183,213 154 50 1,786,261 215,554 - - 215,554 154 50 1,570,707 (355,741) (678,740) (355,741)6t 78,740) 154 (355,691) 891,967 -"154) 355,691 3,314,251 $ - 4,20 218 62 EXHIBIT C-2 Capital Redevelopment Redevelopment 2,807,023 Totals Improvement Agency -PA No. 1 Agency -PA No. 2 1996 1993- 132,185 - - 1,735,233 1,396,711 116,786 - 166,224 283,010 482,633 - - 182,114 365,531 244,916 - - - - 14,488 - 9,152 - 9,152 353,118 248,971 9,152 348,338, 2,392,926 2 4966 - 848,797 517,948 1,366,745 1,435,830 2,537,923 - - 2,753,477 2,333,040 - - - - 810,491 - 9,600 - 9,600 108,157 2,537,923 858,397 517,948 4,129,822 4,687,518 �� 2 28(2, 8:952) (84.9,2451 16( 9,610) 1 736 896 (2,195,652) 2,297,280 710,735 2,635,843 5,643,858 4,584,547 - _ (291,907) (1,326,388) (2,203,329) 2,297,280 710,735 2,343,936 4,317,470 5,002,675 8,328 (138,510) 2,174,326 2,580,574 2,807,023 (8.328) 117,984 1,922,376 5 7{1820 2,894,797 -2[ 0.526) 4,096,702 8,282,394 5701.820 63 CITY OF LA QUINTA Capital Project Funds Assessment District 91-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Interest Total revenues Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year EXHIBIT C-3 (5.122) (5,122) 154 154 (8,368) X154) (154) - 8,214 154 - 154 154 GZI Variable Favorable 1995 Budget Actual (Unfavorable) Actual 154 154 (3.246) 154 154 (3,246) - 154 154 3( ,246) (5.122) (5,122) 154 154 (8,368) X154) (154) - 8,214 154 - 154 154 GZI CITY OF LA QUINTA Capital Project Funds Assessment District 92-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Interest Miscellaneous Total revenues Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances (deficit) at end of year EXHIBIT C-4 Variable Favorable 1995 Bullet Actual (Unfavorable) Actual $ - 50 50 18,082 - - 600 50 50 18,682 50 .055.7 1 355 741) 355 741) 355 741) (355,741) (355,691) 355,691 355,691 50 - 65 50 18,682 68,862) 50 (50,180) 405,871 50 355,691 CITY OF LA QUINTA Capital Project Funds Infrastructure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Developer fees Interest Miscellaneous Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT C-5 Variable Favorable 1995 Budget Actual (Unfavorable) Actual $ 974,900 1,603,048 628,148 1,396,711 22,500 183,213 160,713 156,113 - - - 13,888 997,400 1,786,261 788,861 1,566,712 278,600 215,554 63,046 - 278,600 215,554 63,046 - 718,800 1,570,707 851,907 1566,712 X2,849,089) (678,74Q) 2,170,34982� 3 8427 49,089) (678.740) 2.170.3498� 23,842) (2,130,289) 891,967 3,022,256 742,870 3,314,251 3,314,251 - 2,571,381 1 183 962 4.206.218 3,022,256 3,314,251 CITY OF LA QUINTA Capital Project Funds Capital Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Developer fees Intergovernmental Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): EXHIBIT C-6 Variable Favorable 1995 Bum t Actual (Unfavorable) Actual $ 468,955 132,185 855,586 116,786 1,324,,541 248,971 7,504,529 2,537,923 7,504,529 2,537,923 (336,770) - 738 800 471,983 1.075.570) 471,983 4966,606 2,154,566 4.966,606 2,154,566 (6,179,988)2 2(, 88,952) 3,891,036 (1,682,583) Operating transfers in 6,179,970 2.297,280 Total other financing sources (uses) 6,179,970 2,297,280 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (18) 8,328 Fund balances (deficit) at beginning of year --__L8,328) (8,328) Fund balances (deficit) at end of year L --C&346) - 67 3 8(. 82,690) 1,674,255 (3,882,690) 1,674,255 8,346 (8,328) 8,346 (8,328) CITY OF LA QUINTA Capital Project Funds Redevelopment Agency Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Revenues: Litigation settlement proceeds Total revenues Expenditures: Current: Planning and development Capital outlay Debt Service: Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year EXHIBIT C-7 Variable (138,510) Favorable 1995 Budget Actual (Unfavorable) Actual $ 9,152 9,152 353,118 - 9,152 9,152 353,118 747,090 848,797 9,600 747,090 858,397 (101,707) 977,026 178,474 9 600) 104,911 (111,307) 1,260,411 74� 7.090) (849,245) (102.155)—(2Q7.293) 959,280 710,735 (73,710) - 885,570 710,735 138,480 (138,510) 117,984 117,984 S 256,464 2a 0,526) 68 (248,545) 2,462,714 73,710 (1,305,503) - 2,621,457 (174,835) 3 778,668 (276,990) 2,871,375 (2.753,391) 27{ 6,990) 117,984 EXHIBIT C-8 CITY OF LA QUINTA Capital Project Funds Redevelopment Agency Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1996 Variable Favorable 1995 Budget Actual favorable Actual Revenues: Intergovernmental $ - 166,224 166,224 10,650 Interest 5.000 182,114 177,114 70,721 Total revenues 5,000 348,338 343,338 81,371 Expenditures: Current: Planning and development 2,362,947 517,948 1,844,999 458,804 Debt Service: Principal - - - 810,491 Total expenditures 2,362,947 517,948 1,844,999 1,269,295 Excess (deficiency) of revenues (under) over expenditures (2,357,947) (169,610) 2,188,337 (1,187,924) Other financing sources (uses): Operating transfers in 33205,765 2,635,843 (569,922) 447,578 Operating transfers out (211,081) 29� 1.907) L8082 - Total other financing sources (uses) 2,994 684 2,343,9366( 50,748) 447.578 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 636,737 2,174,326 1,537,589 (740,346) Fund balances at beginning of year 1,922,376 1,922,376 - 2,662,722 Fund balances at end of year $Z559,113 4,096,702 1,537,589, 1,922,376 (This page intentionally left blank) 70 AGENCY FUNDS Agency funds are used to account for assets held by the City as an agent for an individual, private organizations and other governmental units. The agency funds and their purposes are as follows: The City of La Quinta has seven agency funds: Arts in Public Places Fund - To account for development fees paid in lieu of acquisition and installation of approved art works in a development with expenditures restricted to acquisition, installation, maintenance and repair of art works at approved sites. The development fees are refundable if not expended within two years. Deferred Com ep _ns_ation Fund - To account for deposits held by the City and monies held on behalf of employees under the City's deferred compensation plan. Assessment District No. 88-1, 89-2, 90-1, 91-1, 92-1 - To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. 71 CITY OF LA QUINTA Trust and Agency Funds Combining Balance Sheet June 30, 1996 Employee's Assessment Assessment Arts in Deferred District District Public Places Compensation No. 88-1 No. 89-2 Assets Cash and investments $279,104 546,683 270,533 262,071 Interest receivable 3,028 - —0 _8169 Total assets $282J32 546,683 275,993 270.240 Liabilities and fund balance Liabilities: Deposits payable $282,132 - Deferred compensation payable - 546,683 Due to bondholders Total liabilities $282,132 546,683 72 275,993 275,993 270,240 270,240 10.14.: Goal Assessment Assessment Assessment Totals District District District (Memorandum Only) No. 90-1 No. 91-1 No. 92-1 1996 1995 271,377 452,523 301,880 2,384,171 1,861,233 5,1.45 14,708 9,048 48,558 - 279,522 467,231 310,928 2,432,729 1,861.233 282,132 234,651 - - - 546,683 279,966 279,522 467,231 310,928 1,603,914 1,346,616 279,522 467,231 310,928 2,432,729 1,861233 73 EXHIBIT D-2 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 1996 Balance at Balance at July 1, 1995 Additions Deletions June 30, 1996 ARTS IN PUBLIC PLACES Assets Cash and investments $ 234,651 115,116 70,663 Interest Receivable - 3,848 820 Total assets $ 234,651 118,964 71,483 Liabilities Deposits payable $ 234,651 172,303 124,822 EMPLOYEE'S DEFERRED COMPENSATION Assets Cash and investments 1_279_,966 266,717 - Liabilities Deferred compensation payable $ 279,966 266,717 - ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments $ 273,392 126,493 129,352 Interest Receivable - 6,255 795 Total assets $ 273,392 132.748 130,147 Liabilities Due to bondholders $ 273,392 269,639 267,038 74 279,104 3,028 282,132 282,132 546,683 546,683 270,533 5,460 275,993 275,993 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments Interest Receivable Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO. 90-1 Assets Cash and investments Interest Receivable Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders (Continued) EXHIBIT D-2 (Continued) Balance at Balance at July 1, 1995 Additions Deletions June 30,_1996 $ 235,636 173,743 147,308 - 8,939 770 235,636 182,682 148,078 235 636 338,373 303,769 $ 203,520 222,207 154,350 - 8,943 798 L-293,520 231,150 155 X48 203 520 391,298 315,296 $ 375,715 375,766 298,958 - 16,037 1,329 375,715 391„,803 300287 262,071 8,169 270,240 270,240 271,377 8,145 279,522 279,522 452,523 14,708 467,231 375,715 695,532 604,016 467,231 75 EXHIBIT D-2 (Continued) CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments Interest Receivable Total assets Liabilities Due to bondholders TOTALS -ALL AGENCY FUNDS Assets Cash and investments Interest Receivable Total assets Liabilities Deposits payable Deferred compensation payable Due to bondholders Total liabilities (Continued) Balance at Balance at July 1, 1995 Additions Deletions June 30, 1996 $ 258,353 251,154 207,627 301,880 - 9,9.34 886 9,048 258 353 261,088 208,513 310,928 258 353 458,151 405,576 310,928 $1,861,233 1,531,196 1,008,258 2,384,171 53,955 5,397 48,558 $1,861,233 1,585,151 1,013,655 2,432,729 $ 234,651 172,303 124,822 282,132 279,966 266,717 - 546,683 1,346,616 2,152,993 1,895,695 _ 1,643,914 1861233 2,592,013 2,020,517 2,432,729 ►[61 GENERAL FIXED ASSETS ACCOUNT GROUP 77 EXHIBIT E-1 CITY OF LA QUINTA Comparative Schedule of General Fixed Assets - By Source June 30, 1996 78 1996 1995 General fixed assets: Land $13,368,910 8,041,393 Buildings 12,404,019 12,456,122 Leasehold improvements 201,070 201,070 Furniture and fixtures 1,058,572 681,565 Vehicles 475,382 393,279 Total general fixed assets 27,507,953 21,773.,429 Investment in general fixed assets from: General Fund $27,507,953 21,773,429 78 CITY OF LA QUINTA Schedule of General Fixed Assets - By Function and Activity June 30, 1996 Function and Activity General Government Legislative City Manager Fiscal Services Administrative Services Parks and Recreation Building and Safety Planning and Development Public Works Total Furniture and Land Fixtures $13,368,910 - - 11,934 - 140,413 - 187,992 - 184,849 - 81,569 - 100,527 - 97,258 254,030 $1.3,36839I 0 I O5_,_, $ 572 VU EXHIBIT E-2 Vehicles Improvements Buildings Total - - 12,404,019 25,772,929 - - - 11,934 - - - 140,413 - - - 187,992 - - - 184,849 - 201,070 - 282,639 249,880 - - 350,407 - - - 97,258 225,502 - 479,532 475,382 201,070 I2,404,019 27,507,953 EXHIBIT E-3 CITY OF LA QUINTA Schedule of Changes in General Fixed Assets - By Function and Activity June 30,1996 Function and Activit General Government Legislative City Manager Fiscal Services Administrative Services Parks and Recreation Building and Safety Planning and Development Public Works Totals Beginning Ending Balance Additions Deletions Adjustments* Balance $20,497,516 8,302,935 2,958,750 (68,772) 25,772,929 11,934 - - - 11,934 60,871 5,782 - 73,760 140,413 237,348 1,390 - (50,746) 187,992 60,145 19,943 - 104,761 184,849 203,430 3,637 - 75,572 282,639 306,299 36,781 - 7,327 350,407 60,564 6,188 - 30,506 97,258 335.322 59,314 - 84,896 479,532 $21.773,429 8,435,970 2,958,750 257,304 27,507,953 * The adjustments column reconciles General Fixed Assets to a physical inventory performed June 30, 1995 by a fixed asset appraisal firm. The report is on file at the City. 80 STATISTICAL SECTION 81 CITY OF LA QUINTA TABLE 1 General Fund Expenditures by Function Last Ten Fiscal Years Fiscal Year Ending General Public Public Community Planning& Capital June 30 Government Safety Works Service Development Projects Total 1987 $709,392 1,297,511 (1) 513,785 (1) - 2,520,688 1988 833,100 1,384,700 (1) 206,300 (1) 1,449,200 3,873,299 1989 1,040,895 1,491,594 (1) 701,175 (1) - 3,233,663 1990 1,514,110 1,883,105 (1) 928,798 (1) 4,326,012 1991 1,968,275 2,501,105 (1) 777,366 (1) - 5,246,745 1992 1,921,155 2,155,813 618,612 157,897 904,171 11,813 5,769,461 1993 1,807,205 2,393,202 600,253 146,686 884,537 - 5,831,883 1994 2,359,673 2,786,575 673,144 119,265 511,416 - 6,450,073 1995 1,565,265 3,143,697 576,304 199,115 538,610 282,113 6,305,104 1996 $1,793,301 3,227,438 813,352 413,142 453,656 201,475 6,902,364 (1) Prior to fiscal year 1992 Public Works and Planning & Development expenditures were included with Community Service. Source: City of La Quinta Audited Financial Statements 82 CITY OF LA QUINTA General Fund Revenue by Source Last Ten Fiscal Years TABLE 2 Fiscal Year Licenses Charges Litigation Ending and Inter- for Settlement June 30 Taxes Permits Governmental Services Proceeds Interest Miscellaneous Total 1987 $1,480,542 1,211,849 338,124 (1) (2) 265,340 121,585 3,417,440 1988 1,654,700 1,932,200 384,200 (1) (2) 242,500 278,300 4,491,900 1989 2,306,887 3,656,307 496,621 (1) (2) 368,136 336,445 7,164,396 1990 3,154,942 3,286,872 630,791 (1) (2) 155,530 114,686 7,342,821 1991 3,288,565 785,381 790,880 602,600 (2) 642,813 101,411 6,211,650 1992 3,135,044 576,293 930,503 488,015 (2) 261,380 120,867 5,512,102 1993 3,581,830 622,107 1,157,587 384,000 (2) 238,321 219,641 6,203,486 1994 4,212,604 777,241 1,600,032 469,695 (2) 585,264 1,042,872 8,687,708 1995 4,946,304 902,914 747,784 551,727 477,872 718,310 137,028 8,481,939 1996 $5,393,456 998,030 815,980 610,873 12,386 905,420 230,705 8,966,850 (1) Previously included in Licenses and Permits (2) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source Source: City of La Quinta Audited Financial Statements 83 CITY OF LA QUINTA Property Tax Levies and Collections Last Six Fiscal Years TABLE 3 Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding no -low and supplemental property taxes. 3. Detail prior to fiscal year 1991 not available. Source: City of La Quinta and County of Riverside 84 Percent of Fiscal Year Total Current Percent Delinquent Total Ending Tax Tax of Levy Tax Collections June 30 Levy Collection Collected Collections to Tax Levy 1991 $280,339 256,297 91.4% 21,921 99.2% 1992 282,201 260,365 92.3% 25,703 101.4% 1993 282,630 244,731 86.6% 14,824 91.8% 1994 288,407 275,752 95.6% 900 95.9% 1995 549,273 487,043 88.7% 786 88.8% 1996 $670,398 643,309 96.0% 2,312 96.3% Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding no -low and supplemental property taxes. 3. Detail prior to fiscal year 1991 not available. Source: City of La Quinta and County of Riverside 84 Fiscal Year Ending June 30 1991 1992 1993 1994 1995 1996 Secured Property $1,278,307,230 1,594,767,374 1,773,323,102 1,872,768,156 1,927,834,908 $2,043,276,054 CITY OF LA QUINTA Schedule of Net Taxable Value Last Six Fiscal Years Unsecured Property 7,156,844 6,396,816 6,943,559 8,119,527 22,822,285 23,801,872 Assessed Less Property Property Value Exemptions 1,285,464,074 3,474,595 1,601,164,190 3,605,829 1,780,266,661 3,814,434 1,880,887,683 3,946,378 1,950,657,193 4,357,954 2,067,077,926 6,936,774 Note: Detail prior to fiscal year 1991 not available (1) Homeowner's exemption not available Source: County of Riverside 85 TABLE 4 Less Net Homeowner's Taxable _Exemptions Value (1) 1,281,989,479 (1) 1,597,558,361 (1) 1,776,452,227 18,901,202 1,858,040,103 20,518,400 1,925,780,839 22,399,068 2,037,742,048 CITY OF LA QUINTA Property Tax Rates - Direct and Overlapping Governments Last Five Fiscal Years (per $100 of Assessed Value) NOTE: Detail prior to fiscal year 1991 not available Source: County. of Riverside 86 TABLE 5 1995/96 1994/95 1993/94 1992/93 1991/92 General 1.00000 1.00000 1.00000 1.00000 1.00000 Desert Sands Unified 0.09750 0.09750 0.09750 0.09750 0.09750 College of the Desert 0.00000 0.00000 0.00000 0.00096 0.00132 Coachella Valley Water District 0.02080 0.02080 0.02080 0.02690 0.03050 Total Tax Rate 1.11830 1.11830 1.11830 1.12536 1.12932 NOTE: Detail prior to fiscal year 1991 not available Source: County. of Riverside 86 TABLE 5 CITY OF LA QUINTA Special Assessment Billings and Collections Last Six Fiscal Years Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billings Collections (1) to Billings 1991 $355,924 335,177 99.8 1992 557,574 552,249 99.0 1993 559,029 548,291 98.8 1994 766,011 734,560 95.9 1995 836,502 737,700 88.2 1996 $729,647 699,351 95.8 (1) Includes Prepayments and Foreclosures Source: Muni Financial Services 87 TABLE 6 Source: CITY OF LA QUINTA TABLE 7 Schedule of Direct and Overlapping Bonded Debt June 30, 1996 Excludes tax allocation bonds to be sold. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. California Municipal Statistics, Inc. m Percent June 30, 1996 Direct and Overlapping Bonded. Debt Applicable Bonded Debt Riverside County Board of Education Certificates of Participation 0.996 $219,930 Riverside County Building Authorities 0.996 4,737,424 Desert Community College District Certificates of Participation 3.809 133,696 Desert Sands Unified School District Authority 9.043 12,472,141 Coachella Valley County Water District, I.D. #55 72.943 9,176,229 Coachella Valley County Water District, I.D. #58 1.975 198,488 Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation 6.297 1,014,132 City of La Quinta 100.000 0 (1) City of La Quinta 1915 Act Bonds 100.000 5,465,000 Total Direct and Overlapping Bonded Debt $33,417,040 _ (2) Excludes tax allocation bonds to be sold. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. California Municipal Statistics, Inc. m CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 1996 Assessed Valuation Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin $2,06-7077.926 310,061,689 -0- S310.061,689 Notes: Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quinta has no general bonded indebtedness. Source: City of La Quinta 89 TABLE 8 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Five Fiscal Years Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1992 $182,784 0 182,784 182,784 1.00 1993 548,352 0 548,352 548,352 1.00 1994 548,352 0 548,352 548,352 1.00 1995 699,477 155,000 544,477 699,477 1.00 1996 $696,402 160,000 536,402 696,402 1.00 Note: Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. Source: City of La Quinta 90 Fiscal Year Ending June 30 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Source CITY OF LA QUINTA Demographic Statistics Last Ten Fiscal Years Square Miles (D Papulation (2) Percent 23.2 8,188 23.2 9,274 23.2 10,267 23.3 10,587 23.8 13,070 28.0 14,727 28.2 15,589 28.2 16,680 31.2 17,591 31.2 18,050 Total Population Riverside Percent County Change Population 2 14.2% 893,400 13.3% 983,800 10.7% 1,057,200 3.1% 1,144,400 23.5% 1,225,800 12.7% 1,281,000 5.9% 1,323,500 7.0% 1,357,400 5.5% 1,393,500 2.6% 1,381,879 (1) City of La Quinta (2) State of California Department of Finance 91 TABLE 10 City Population Percent Of County 0.9% 0.9% 1.0% 0.9% 1.1% 1.1% 1.2% 1.2% 1.3% 1.3% Fiscal Year Ending June 30 1991 1992 1993 1994 1995 1996 CITY OF LA QUINTA Property Value and Construction Activity Last Six Fiscal Years Property Value (1) $1,278,307,230 1,594,767,374 1,773,323,102 1,872,768,156 1,927,834,908 $2,043,276,054 NOTE: Detail prior to fiscal year 1991 not available (1) From Schedule of Net Taxable Value Source: City of La Quinta 92 TABLE 11 Commercial Construction Construction Units Value 3 7,299,000 12 7,334,871 7 2,441,392 13 6,081,796 4 1,100,119 8 1,018,940 NOTE: Detail prior to fiscal year 1991 not available (1) From Schedule of Net Taxable Value Source: City of La Quinta 92 TABLE 11 Residential Construction Units Value 304 38,320,527 320 35,744,443 324 39,145,539 531 79,318,969 238 29,163,494 336 53,973,239 TMpqyer KSL PGA West Corporation Sunrise Desert Partners Resolution Trust Corporation Hotel Associates of Palm Springs TD Desert Development LTD Wilma -La Quinta Partnership J.M. Peters Company Washington -Adams Partnership Wal-Mart Stores La Quinta Golf Course Properties Source: City of La Quints CITY OF LA QUINTA Principal Taxpayers June 30, 1996 93 Type of Activity Residential and Commercial Vacant Residential Vacant Residential Commercial Vacant Land Residential Vacant Residential Commercial Commercial Vacant Commercial Source: CITY OF LA QUINTA TABLE 13 Major Employers June 30, 1996 Employer _ Employees Activity La Quinta Hotel and Golf Resort 1,500 Resort Hotel PGA West 1,100 Golf Resort Wal-Mart 250 Retailer Albertson's 126 Groceries Vons 103 Groceries Ralph's 100 Groceries City of La Quinta 74 Municipal Government Simon Motors 65 Auto Dealer Cliff House 65 Restaurant Red Robin 50 Restaurant City of La Quinta 94 CITY OF LA QUINTA TABLE 14 Schedule of Insurance in Force June 30, 1996 Company Name Policy Number Coverage Limits Term Premium Hartford PEBAO7068 Employee Dishonesty, $1,000,000 05/01/96 - 97 $2,500 Forgery, Computer Fraud Unigard BA610855 Primary Auto Liability $300,000 07/01/96 - 97 16,441 Comprehensive & Collision Lloyds of London F95BDCE006 Fire Truck Physical Damage $185,000 07/01/96 - 97 2,390 Van Pelt/Spartan Affiliated FM TC564 All Risk Property Insurance $188,828,284 07/01/96 - 97 13,180 (Excluding Quake & Flood) Coachella Valley Certificate #5 Comprehensive General $0 Deductible Retention 07/01/96 - 97 63,793 Joint Powers Liability $10 Million Insurace Authority Coachella Valley Certificate Worker's Compensation $250,000 07/01/96 - 97 84,498 Joint Powers #5014-014 Insurance Authority Source: City of La Quinta 95 CITY OF LA QUINTA TABLE 15 Miscellaneous Statistical Data June 30, 1996 Date of Incorporation ...... . ....... _ ..... _ .................. May 2, 1982 Type of City ..... . .............................. General Law Form of Government Council / Manager City Employees ............................... 74 City Land Area (square miles).. . ..... . .............. 31.2 Population 18,050 Number of Parks ....................................... 5 Total Acreage ....... . ............ I ........ I ....... ,. 26 Miles of Streets .......................... . ...... I ..... 142.0 Miles of Bike Paths ............. ....... I ... 1 3.0 Number of Major Intersections .................................. 29 Number of Traffic Signals and Safety Lighting ............. . . . ....... 15 Number of Traffic Signs ............. . ......................... 2,430 Number of Street Lights ........................... . . . . . ...... 7 Public Schools .... ........ ................ I ...... ... 3 Private Schools ...................... ................. 1 Churches ....................................... 3 Banks/Savings and Loan.. ..................................... 2 Number of Single Family Units - Detached .......................... 6,397 Number of Single Family Units - Attached.. . . ...................... 2,227 Number of Multiple Family Units ................................ 481 Number of Mobile Home .......... . ............................ 247 Source: City of La Quinta 96