1996-1997 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)0-0
City of La Qluinta
Cafifornima
Comprehensive Annual Financial Report
for the
Year Ended June 30, 1997
CITY OF LA QUINTA
La Quinta, California
Comprehensive Annual Financial Report
Year ended June 30, 1997
Prepared by
FINANCE DEPARTMENT
JOHN M. FALCONER
Director of Finance
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CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1997
TABLE OF CONTENTS
Exhibit
Page
INTRODUCTORY SECTION:
Letter of Transmittal
i
List of Principal Officials
xix
Organizational Chart
xxi
Certificate of Award for Outstanding Financial Reporting (CSMFO)
xxiii
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:
General Fund:
Statement of Expenditures - Budget and Actual
40
Special Revenue Funds:
Combining Balance Sheet
A-1
44
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
A-2
46
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1997
TABLE 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
State Law Enforcement Block Grant (SLEBG):
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
A-7
Quimby Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
A-8
Village Parking Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
A-9
South Coast Air Quality Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual A-10
Page
M
49
50
51
52
53
54
55
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1997
TABLE OF CONTENTS, (CONTINUED)
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual A-15
Low/Moderate Bond - Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual A-16
Debt Service Funds:
Combining Balance Sheet B-1
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances B-2
W
61
64
M.
Exhibit Page
Local Law Enforcement Block Grant (LLEBG):
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
A-11 56
Urban Forestry Grant Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
A-12 57
Low/Moderate Income Housing Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual •
A-13 58
Low/Moderate Income Housing Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
A-14 59
Low/Moderate Bond - Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual A-15
Low/Moderate Bond - Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual A-16
Debt Service Funds:
Combining Balance Sheet B-1
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances B-2
W
61
64
M.
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1997
TABLE OF CONTENTS, -(CONTINUED)
Exhibit
Financing Authority Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual B-3
Redevelopment Agency Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual B-4
Redevelopment Agency Project Area No. 2 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
Infrastructure Fund:
Page
67
68
70
72
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual C-3 74
Capital Improvement Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual C-4
Financing Authority Capital Projects Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual C-5
75
rill
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1997
TABLE OF CONTENTS CONTINUED
Exhibit
Redevelopment Agency Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual C-6
Redevelopment Agency Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual C-7
Agency Funds:
Combining Balance Sheet - All Agency Funds
D-1
Combining Statement of Changes in Assets
and Liabilities - All Agency Funds
D-2
General Fixed Assets Account Group:
Comparative Schedule of General Fixed Assets - By Source
E-1
Schedule of General Fixed Assets - By Function and Activity
E-2
Schedule of Changes in General Fixed Assets -
by Function and Activity
E-3
Page
77
78
80
82
86
87
88
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1997
TABLE OF CONTENTS, (CONTINUED)
Table No.
Page
STATISTICAL SECTION:
General Governmental Expenditures by Function
1
90
General Governmental Revenue by Source
2
91
Property Tax Levies and Collections
3
92
Schedule of Net Taxable Value
4
93
Property Tax Rates - Direct and Overlapping Governments
5
94
Special Assessment Billings and Collections
6
95
Schedule of Direct and Overlapping Bonded Debt
7
96
Computation of Legal Debt Margin
8
97
Revenue Bond Coverage
9
98
Demographic Statistics
10
99
Property Value and Construction Activity
11
100
Principal Taxpayers
12
101
Major Employers
13
102
Schedule of Insurance in Force
14
103
Miscellaneous Statistical Data
15
104
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August 20, 1997
78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 - (760) 777-7000
FAX (760) 777-7101
TDD (760) 777-1227
Honorable Mayor, City Council,
and City Manager
City of La Quinta
La Quinta, California
FY 1996-97 CQMPREHENSIYE ANNUAL FINANCIAL RE' PORT LETTER OF TRANSMITTAL
We are pleased to present the 1997 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, 1997. 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.
MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 � r,
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 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 originally incorporated in 1982 as a general law City and it became a charter City in November 1996.
Significant demographic data is as follows:
° Population as of December 1996 was 18,931 an increase of 370% from 1980;
■ Retail Sales over $95 million a 275% increase from 1986;
Taxable Sales over $129 million a 255% increase from 1986;
Assessed Valuation over 2 billion a 240% increase from 1986; and,
Hotel Room sales over 26 million a 195% increase from 1986
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 recently opened the Adams Elementary School.
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 1996-97 is 69. In addition to the 18,046 permanent residents
approximately 9,400 seasonal residents spend three to six months in the City.
ii
Honorable Mayor, City Council,
and City Manager
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
R ifl i g and f�c.X
- Administration
- Code Compliance
- Animal Control
- Building
- Emergency Services
- Fire
- Civic Center Building
Public Works
- Administration
- Development/Traffic
- Street & Landscape Maintenance
- Capital Projects
City Clerk
- City Clerk
CoMmutlity Services
- Administration
- Recreation
- Senior Center
- Administration
- Current Planning
- Advance Planning
- Redevelopment
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, public transit through Sunline Transit
Agency, and cable service through Media One.
iii
Honorable Mayor, City Council,
and City Manager
Significant Events and Accomplishments
During 1996-97 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:
Single family construction accounted for $82 million in building permits while commercial construction accounted
for over $20 million.
A large Home Depot hardware outlet is presently under construction in a new 218,000 square foot retail center
at the intersection of Highway 111 and Jefferson Street.
The development of numerous residential communities has increased the assessed valuation in the City. As
mentioned earlier, the City's assessed valuation has increased three fold from 1986 to over $2 billion, with an
increase of $100 million during the latest year.
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 $110,000 which is lower than Riverside, San Diego,
Los Angeles Counties and the State of California.
There were 600 housing units built during 1995 which brings to 9,957 the number of total units within the City.
The 9,957 units consist of 9,113 single family residences, 597 multi family residences, and 247 mobile homes.
La Quinta is home to several of the worlds highest rated golf courses. During FY 1996-97, major golf
tournaments hosted in La Quinta included the prestigious Bob Hope Chrysler Classic, the Skins Game, the Diners
Club Tournament, the Liberty Mutual Senior Legends of Golf, and Raymond Floyd hosted charity golf event.
The nationally recognized La Quinta 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
iv
Honorable Mayor, City Council,
and City Manager
in hotel revenues during 1996. A 37,000 square foot ballroom facility has been 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.
The completion of over $5,000,000 in capital improvements including the Highway I I I/Washington Street
Intersection and Jefferson Street Overlay.
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 FaQi1iJies
The City completed the Fritz Burns and Adams Street Parks, Sports Complex Lighting Project, Traffic
Improvements at various intersections, Bear Creek Channel Bike Path, Landscaping, Highway I I I/Washington
Street widening while maintaining 20 acres of medians, 15 acres of parks and 105 miles of streets.
The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 1996-
97:
Completion of a Comprehensive Economic Development Plan;
Completed Charter City adoption process;
Initiated Small Business Development Program;
Implemented Optical Disk Imaging System for City Clerk records;
Received awards in excellance for financial and budget reports;
Streamlined Business License and Purchasing Policies;
Started the General Plan Updates;
Revised sub -division ordinance.
�`3t_ijre developmen s 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.
V
Honorable Mayor, City Council,
and City Manager
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.
SinglQ 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, 1997 provided no instances of material weaknesses in the internal control structure or significant
violations of applicable laws and regulations.
Acc!aUating Controls - 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 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.
Vi
Honorable Mayor, City Council,
and City Manager
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 cost/benefit 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.
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. The City also maintains an encumbrance system as one
budget technique. 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.
Gagri. Limit - Appropriations SigJ1jQ 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 1996-97
to increase to $22.6 million. Appropriations of "proceeds of taxes" was $ 7.4 million for a margin of $15.2
million.
Vii
Honorable Mayor, City Council,
and City Manager
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 1996-97 and the amount and percentage of
increases and decreases in relation to prior year revenues.
Fund Tvue
1996-97
RMS
96-97 over %
(under) 95-96 Change
General Fund
$9,790,719
8,966,850
823,869
9.2%
Special Revenue Funds
8,905,876
6,933,517
1,972,359
28.4%
Debt Service Funds
12,641,814
12,541,457
100,357
0.8%
Capital Project Funds
2,844,354
2,392,926
451,428
18.9%
Internal Services Fund
13 5, 913
0
13 5, 913
n/a
Total
$34,318,676
30.834 750
3,483,926
11.3%
Expcnnd tures All Etuid Iypes
96-97 over %
Fund Type 1996-97 1995-96 (under) 95-96 Change
General Fund
$7,803,358
6,902,364
900,994
13.1%
Special Revenue Funds
3,377,437
10,333,169
(6,955,732)
-67.3%
Debt Service Funds
14,009,893
12,584,015
1,425,878
11.3%
Capital Project Funds
6,523,530
4,129,822
2,393,708
57.9%
Internal Service Fund
130,151
0
130,151
n/a
Total
$31.844.369
_33,949,370
2.105,001)
-6.2%
For all fund types, the increased revenue is reflective of a one time $2,112,000 developer contribution in the
Redevelopment Agency - Special Revenue Fund, increased Capital Project Fund activity, and a full year's
operational revenue for the Equipment Replacement Internal Service Fund compared to the previous initial years
startup revenue. Although Capital Project fund expenditures activity increased considerably, the overall
expenditures for all fund types decreased 6.2% due primarily to decreased Redevelopment Agency Housing -
Special Revenue Funds expenditures.
Honorable Mayor, City Council,
and City Manager
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 1996-97 and 1995-
96:
General Fund - Remmu
Source
1996-97
1995-96
Taxes
$5,942,698
$5,393,456
Licenses and permits
793,689
998,030
Charges for services
976,897
610,873
Intergovernmental
1,072,803
815,980
Interest
941,327
905,420
Litigated Settlements
40,593
121386
Miscellaneous
22,712
230,705
Total
$9,790,719
8,966,850
96-97 over
%
(under) 95-96
Change
$549,242
10.2%
(204,341)
-20.5%
366,024
59.9%
256,823
31.5%
35,907
4.0%
28,207
227.7%
__C2072993)
-90.2%
823,869
9.2%
The 1996-97 General Fund revenue increase of 9.2% reflects a steady increase in tourism and population
growth.
Although License and Permit revenue was more than anticipated in 1996-97, it was 20.5% less than 1995-
96 due to a second half slow down in construction activity. Chargcs for Seryicrs increase of 59.9%
reflects a change in engineering fees which were handled as a deposit trust system in 1995-96_and prior
years and in 1996-97 were changed to a straight revenue fee system. The Intereoverr?mcatal increase of
31.5% primarily reflects the receipt of two years of County Service Area 152 assessment in 1996-97. The
large decrease of 90.2% in Miscellaneous is primarily due to the one time grant of $125,000 from the
local cable company in 1995-96.
ix
Honorable Mayor, City Council,
and City Manager
Expenditure Type
General Government
Public Safety
Community Services
Planning & Development
Public Works
Capital Projects
Debt Service
Total
General Fund
Fzprnditures
96-97 over
%
1996-97
1995-96
(under) 95-96
Change
$2,376,935
1,793,301
583,634
32.5%
3,442,056
3,227,438
214,618
6.6%
469,110
413,142
55,968
13.5%
455,563
453,656
1,907
0.4%
889,694
813,352
76,342
9.4%
170,000
201,475
(31,475)
-15.6%
0
0
0
0.0%
$7,803,358
6,902,364
900,994
13.1%
The 1996-97 General Fund expenditures increase of 13.1% reflects primarily one category - General
Government. This increase is a result of increased legal fees associated with a large new development.
General Qmrnment increase of 32.5% consists mainly of increased legal costs and also includes
increased expenditures in economic development. Community Services 13.5% increase is a result of the
Councils desire to offer more services to the public. Capital Outlay expenditure decreased 15.6%
primarily as a result of fewer computer purchases.
x
Honorable Mayor, City Council,
and City Manager
Sp ial Revoinie Binds
The City's Special Revenue Funds, which account for the collection and use of special or restricted
revenues, received $8.9 million in total revenue in 1996-97. This as an increase of 28.4%. The Special
Revenue Fund expenditures were $3.3 million, a decrease of 67.7%.
The following two tables summarize Special Revenue Funds revenues and expenditures for 1996-97 and
1995-96:
Special Revenue Funds - Revenue
revenue increase of 105.6% is a result of new State and Federal grant money totaling
$324,103. The large increase of 66899.6% in Developer Fees reflects a large one time developer
contribution of $2,112,000 in the Redevelopment Agency. Interest increase of 75.2% reflects earnings
on larger cash balances. Rental Income increase of 118.0% is reflective of a 1996-97 full year of La
Quinta Redevelopment Agency's Rental program compared to the 1995-96 inaugural year. Mit 11a,ieous
revenue decrease of 77.5% is due to fewer Redevelopment Agency Housing subsidy reimbursements
through the sale of subsidy homes.
Xi
96-97 over
%
Source
1996-97
1995-96
(under) 95-96
Change
Taxes
$2,971,135
2,952,336
18,799
0.6%
Developer fees
2,137,288
3,190
2,134,098
66899.6%
Intergovernmental
344,235
363,392
105.6%
707,627
Interest
1,325,902
757,006
568,896
75.2%
Special assessments
994,110
991,123
2,987
0.3%
Rental Income
715,203
328,059
387,144
118.0%
Miscellaneous
54,611
242,986
(188,375)
-77.5%
Land Sale
0
1,314,582
(1,314,582)
-100.0%
Total
$8,905,876
6,933,517
1,972,359
28.4%
revenue increase of 105.6% is a result of new State and Federal grant money totaling
$324,103. The large increase of 66899.6% in Developer Fees reflects a large one time developer
contribution of $2,112,000 in the Redevelopment Agency. Interest increase of 75.2% reflects earnings
on larger cash balances. Rental Income increase of 118.0% is reflective of a 1996-97 full year of La
Quinta Redevelopment Agency's Rental program compared to the 1995-96 inaugural year. Mit 11a,ieous
revenue decrease of 77.5% is due to fewer Redevelopment Agency Housing subsidy reimbursements
through the sale of subsidy homes.
Xi
Honorable Mayor, City Council,
and City Manager
Expenditures e
Public Safety
Planning& Development
Public Works
Capital Outlay
Debt Service
Total
1996-97 1995-96
$41,219 0
2,128,288 5,454,978
1,207,930 987,313
0 3,886,267
0 4,611
$3,377,437 10,333,169
96-97 over
%
(under) 957-96
Change
41,219
n/a
(3,326,690)
-61.0%
220,617
22.3%
(3,886,267)
-100.0%
(4,611)
-100.0%
(6,996,951)
-67.7%
The Public Safety expenditure in 1996-97 reflects the expenditures for additional law enforcement
personnel from the State Law Enforcement Block Grant (COPS) program. Planning & Development
decrease of 61% primarily is a result of less activity in the Redevelopment Agency Housing Program.
The C<apitil QLjtlay in 1995-96 was for Redevelopment Agency loans and home purchases and in 1996-97
no capital purchases were scheduled. In 1995-96 the Lighting and Landscaping fund paid interest on
negative cash, which is reflected in Debt Service and in 1996-97 no interest was paid out.
xii
Honorable Mayor, City Council,
and City Manager
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 1996-97 and
1995-96:
JLjtergovQrnmt,,Bta1 revenues large increase of 297.1% reflects the City's payment to the La Quinta
Financing Authority of fees associated with the 1995-96 Financing Authority bond refinancing. The
Interest revenue's moderate increase of 5.4% is a result of slightly higher cash balances.
Expenditure Type 1996-97
Planning & Development $151,741
Debt Service 13.858.152
Total
$14,009,893
1995-96
213,993
12,370,022
12,584,015
96-97 over
%
_(under) 95-96
96-97 over
%
Source
1996-97
1995-96
(under) 95-96
Change
Taxes
$11,884,541
11,809,354
75,187
0.6%
Intergovernmental
4,614
1,162
3,452
297.1%
Interest
168,191
159,602
8,589
5.4%
Rental Income
584,468
571,339
13,129
2.3%
Total
$12,641,814
12,541,457
100,357
0.8%
JLjtergovQrnmt,,Bta1 revenues large increase of 297.1% reflects the City's payment to the La Quinta
Financing Authority of fees associated with the 1995-96 Financing Authority bond refinancing. The
Interest revenue's moderate increase of 5.4% is a result of slightly higher cash balances.
Expenditure Type 1996-97
Planning & Development $151,741
Debt Service 13.858.152
Total
$14,009,893
1995-96
213,993
12,370,022
12,584,015
96-97 over
%
_(under) 95-96
Change
(62,252)
-29.1%
1,488,130
12.0%
1,425,878
11.3%
The decrease of 29.1 % in Planning & Devel!Qprnent is a result of lower contract administrative service
fees in the Redevelopment Agency debt service fund. Debt Service increase of 12% reflects higher
scheduled tax increment pass through payments in the Redevelopment Agency.
Honorable Mayor, City Council,
and City Manager
Capital Project Funds are used to record the receipt and disbursement of monies that are restricted for
the acquisition and construction of capital facilities.
The following two tables summarize Capital Project Funds revenues and expenditures for 1996-97 and
1995-96:
Source
1996-97
1995-96
96-97 over %
(under) 95-96 Change
Developer fees
$1,752,975
1,735,233
17,742
1.0%
Intergovernmental
656,237
283,010
373,227
131.9%
Interest
405,151
365,531
39,620
10.8%
Litigated Settlements
29,991
9,152
20,839
227.7%
Total
$2,844,354
2,392,926
451,428
18.9%
Intergovernmr,ntal revenue's large increase of 131.9% is a result of $435,400 in Riverside County
Transportation Commission funding of a Capital Project. Ongoing litigation produced higher Litigated
Settlements in 1996-97.
Expenditure Type -
Planning& Development
Capital Outlay
Debt Service
Total
Ca.l)ital Project Fends - l x em
96-97 over
1996-97 1995-96 (under) 95-96
$1,171,440
5,318,680
33,410
$6,523,530
1,366,745
2,753,477
9.600
4,129, 822
(195,305)
2,565,203
23,810
2,393,708
Change
-14.3%
93.2%
1.4R no/.
SR n%
The Planning & DeE�et�ent expenditure's 14.3% decrease reflects a reduction in contract consultant fees in
the Redevelopment Agency - Capital Improvement Funds. Capital Qutlay increase of 93.2% is a result of
increased scheduled Capital Improvement Projects in 1996-97. Debt Service increase of 248% is a result of
interest on negative cash in the Redevelopment Agency -Capital Project Fund.
xiv
Honorable Mayor, City Council,
and City Manager
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 are based on a schedule that covers the
equipment's operation, maintenance, and depreciation costs. The fund was established in 1995-96 with seed
money from the General Fund and it had no operating activity that year. 1996-97 is the first full year of operation
for this fund.
Non -Operating Revenues
(Expenses)
Interest 25,382 2,586 22,796 881.5%
'Total Non -Operating
Revenue (Expenses) 25,382 _ 2,586 22,796 881.5%
Net Income (Loss Before
Transfers 31,144 2 586 22,796 1104.3%
Operating Transfers:
Operating Transfers In
Equipment Replacement
Fund
(25,000)
-10.0%
Total Operating Transfers
225,000
250,000
96-97 over
%
Source
1996-97
1995-96
(under) 95-96�
Change
Operating Revenue
Charges for Services
_$135,913
0
135,913
n/a
Operating Expense:
Cost of Services
92,114
0
92,114
n/a
Administration
3,845
0
3,845
n/a
Depreciation
34,192
0
34,192
n/a
Total Operating Expense
130,151
0
130,151
n/a
Operating Income (Loss)
5,762
0
5,762
n/a
Non -Operating Revenues
(Expenses)
Interest 25,382 2,586 22,796 881.5%
'Total Non -Operating
Revenue (Expenses) 25,382 _ 2,586 22,796 881.5%
Net Income (Loss Before
Transfers 31,144 2 586 22,796 1104.3%
Operating Transfers:
Operating Transfers In
225,000
2501000
(25,000)
-10.0%
Total Operating Transfers
225,000
250,000
(25,000)
-10.0%
Net Income (Loss)
_ 256,144
2524,586
3,558
1.4%
Retained Earnings at
Beginning of Year
2522586
0
252,586
n/a
Retained Earnings at End of
Year
_508230
252,586
256,144
101.4%
xv
Honorable Mayor, City Council,
and City Manager
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 17 to the Financial Statements.
City 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 GASB Statement
Number 5. Based upon the latest information, the total over funded benefit obligation applicable to the
employees of the City at June 30, 1995 was $538,118, up $91,324 from an unfunded 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.
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 $2.8 million in interest
on investments in all fund types from instruments yielding up to 5.972%, compared to earnings of $2.2 million
during 1995-96. Funds are invested in various types of instruments as shown below. At June 30, 1997, the
Treasurer had 100% of all available funds invested. The City's total portfolio at year end was $ 38,778,870.
Below is a summary of cash and investments outstanding as of June 30, 1997:
Form of Casb and Investments
Demand Deposits
U.S. Treasury Bills
U.S. Government Securities
Mutual Funds
Local Agency Investment Fund
Deferred Compensation - Mutual Funds
Total
June 309 1997
60,830
14,549,500
8,484,748
2,750,666
12,181,290
751,836
38,778,870
xvi
Honorable Mayor, City Council,
and City Manager
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.
The California Society of Municipal Finance Officers (CSMFO) and the Government Financial Officers
Association (GFOA) both present an annual Certificate of Award for Outstanding Financial Reporting. We
believe that our current report conforms to their program requirements and we are submitting this report to their
organizations for consideration. If received, the Certificates are valid for one year only. We have received the
CSMFO award for the previous two years.
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, Account Technician 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.
Res ectfully submitted,
John M. Falconer
Finance Director and Treasurer
xvii
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CITY OF LA QUINTA
Directory of Officials
June 30, 1997
CITY COUNCIL
Glenda Holt
Ronald Perkins
Stanley Sniff
Don Adolph
Terry Henderson
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
ADMINISTRATION
Thomas P. Genovese City Manager
Chris Vogt Public Works Director/City Engineer
John M. Falconer Finance Director
Tom Hartung
Building and Safety Director
Jerry Herman
Community Development Director
Saundra L. Juhola
City Clerk
Tom Hartung
Acting Community Services Director
Dawn Honeywell
City Attorney
xix
(This page intentionally left blank)
XX
AdminlstmtIon
Director
Recreation Supervisor
Secretary
Kidsfine Coordinator
Senior Center
Supervisor
Activities Coordinator
Assistant
LCity Attorney
Department Secretary
Secretary
Administration
Director
Senior Secretary
Devela ment & Traffic
Senior Engineer
Associate Engineer
Assistant Engineer I - 2 Positions
Assistant Engineer II
Counter Technician
Capital Projects
Senlor Engineer
Assistant Engineer II
Nfaintenante & fl ratlons
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 1996197
Mayor and City Council
Redevelopment Agency Board
Fiscal Sir ices
Director
Accounting Supervisor
Financial Services Assistant
Account Technician
Secretary
Account Clerk
Central Services
Senior Man emenl Assistant
Deputy City Clerk II
Office Assistant
Administration
Director
Senior Secretary
Code Compliance
Community Safety Manager
Code Compliance Officer II
Code Compliance Officer I - 2 Positions
Counter Technician
Animal Control
Animal Cartrol Officer II
Animal Control/Code Compliance Officer
Building
Building & Safety Manager
Senior Building Inspector
Building Inspector 1- 2 Positions
Counter Technician
Civic Center Building Operations
Faci ities Maintenance Technician
Administration
Director
Planning Manager
Executive Secretary
Office Assistant
Current Planning
Principal Planner
Associate Planner- 2 Positions
Advance Planning
Principal Planner
Associate Planner
(This page intcntionally lcft blank)
- - Cafifornia Society of
Municipaf finance Officers
Certificate of Award
Outstanding Financial Reporting 1995-96
Presented to the
City of La Quinta
This certificate is issued in recognition of meeting professional standards and criteria In reporting which reflect a high level of quality
in the annual financial statements and in the underlying accounting system from which the reports were prepared.
February 24, 199 7
hair, P fusional & Technical Standards Committee
President, CSMFO
X Dedicated to Excellence in Municipal Financial Management X
(This page intentionally left blank)
xxiv
I COl 'd PAD CERTIFIED PUBLIC ACCOUNTANTS
1100 'IN STREET, SUITE C ASS0CI�TES, L.L.P. IRv EACCALIFORNIA 92614
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-2020
The Honorable Mayor and City Council
City of La Quinta
La Quinta, California
Independent Auditors' Report
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, 1997, 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 and
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the 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, 1997, and the results of its operations and the cash flows of its proprietary fund types 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, 1997 on our consideration of the
City's internal control structure and a report dated August 20, 1997 on its compliance with laws
and regulations.
August 20, 1997
1
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
CITY OF LA QUINTA
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1997
Governmental Fund Types
Special
Debt
Capital
Assets and Other Debits
General
Revenue
Service
Projects
Assets:
Cash and investments (note 2)
$ 6,419,976
6,363,933
4,680,466
5,527,892
Cash with fiscal agent (note 2)
w
10,809,165
524,613
1,467,662
Accounts receivable
193,831
237,189
-
498,468
Prepaid expenses
62,759
-
276,546
-
Interest receivable
211,983
24,091
-
8,426
Notes receivable
-
2,452,283
-
99,791
Due from other funds (note 24)
17,487
-
-
1,470
Due from other governments
180,983
1,237
4,950
-
Advances to other funds (note 12)
8,100,070
551,038
-
_
Deposits
39,812
-
-
-
Property, plant and equipment (note 4)
-
-
_
-
Property held for resale
-
86,320
-
-
Other debits:
Amount available in debt service funds
-
-
-
-
Amount to be provided for retirement of
general long-term debt
-
-
-
-
Total assets and other credits
$15,226,941
20,525,256
5,486,575
7,603,749
Liabilities, Equity and Other Credits
Liabilities:
Accounts payable
$ 655,584
10,929
-
351,459
Accrued expenses
45,910
34,000
914,073
-
Compensated absences payable
-
-
-
-
Deposits payable
386,175
49,238
-
136,926
Deferred compensation payable (note 17)
-
-
-
-
Contracts payable
-
30,008
-
-
Retentions payable
-
-
-
17,390
Due to other funds (note 24)
-
-
1,470
17,487
Due to bondholders
-
-
-
_
Advances from other funds (note 12)
-
-
551,038
-
Obligation under pass-through agreements
(notes 9, 10, and 11)
-
-
-
_
Tax allocation bonds (note 6)
-
-
-
-
Revenue bonds (note 8)
-
-
-
Housing bonds (note 7)
-
-
-
_
Total liabilities
1,087,669
124,175
1,466,581
523,262
Equity and other credits:
Investment in general fixed assets
-
-
-
-
Contributed capital
Retained earnings (note 16):
Unreserved
-
-
-
-
Fund balances (note 15):
Reserved
8,202,641
13,898,806
788,777
1,567,453
Unreserved
5,936,591
_6,502,275
3,231,217
5,512,994
Total equity and other credits
I4,139,232
20,401,081
4,019,994
7,08.0,447
Total liabilities, equity and
other credits
$15,226,901
20,525,256
5.486,575
7,603,709
See accompanying
notes to the financial
statements.
2
3
EXHIBIT AA
Proprietary
Fund Types
Fiduciary Fund Tues
Account Groans
Totals
Internal
General
General
(Memorandum Only)
Service
Ajency
Fixed Assets
Loniz-Term debt
1997
1996
550,439
2,434,724
-
-
25,977,430
24,272,820
-
-
-
-
12,801,440
14,965,859
-
-
-
-
929,488
417,889
-
-
-
339,305
296,638
-
-
-
-
244,500
269,709
-
-
-
-
2,552,074
95,445
-
-
-
-
18,957
10,505
-
-
-
-
187,170
202,731
-
-
-
8,651,108
7,204,890
-
-
-
-
39,812
2,073
594,528
-
26,450,545
-
27,045,073
27,507,953
-
-
-
-
86,320
-
-
-
-
4,019,994
4,019,994
3,738,204
-
98,161,203
98,161,203
98,489,069
1,144,967
2,434,724
26,450,545
102,181,197
181,053,874
177,473,785
7,517
-
-
-
1,025,489
1,073,412
-
-
-
-
993,983
534,487
-
-
-
350,653
350,653
298,818
-
289,856
-
-
862,195
513,278
-
751,836
-
-
751,836
546,683
-
-
-
-
30,008
510,756
-
-
-
-
17,390
107,364
-
-
-
18,957
10,505
-
1,393,032
-
-
1,393,032
1,603,914
-
-
-
8,100,070
8,651,108
7,204,890
-
-
-
24,160,474
24,160,474
24,999,603
-
-
-
38,325,000
38,325,000
39,620,000
-
-
-
8,790,000
8,790,000
8,200,000
-
-
22455,000
22,455,000
22,455.000
7,517
2,434,724
-
102,181,197
107,825, I25
107,678,710
-
26,450,545
-
26,450,545
27,507,953
628,720
-
-
-
628,720
-
508,730
-
-
-
508,730
252,586
-
-
-
-
24,457,677
10,526,276
-
-
21,183,077
31,508,260
1,137,450
-
26,450,545
-
73,228,749
69,795,075
1,144.967
2,434,724
26,450,545
102,181,197
181,053,874
177,473,785
3
(This page intentionally left blank)
EXHIBIT BB
CITY OF LA QUINTA
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year ended June 30, 1997
Special Debt Capital
General Revenue Service Proiects
Revenues:
Totals
(Memorandum Only)
1997 1996
Taxes
$ 5,942,698
2,971,135
11,884,541
-
20,798,374
20,155,146
Licenses and permits
793,689
-
-
-
793,689
998,030
Charges for services
976,897
-
-
-
976,897
610,873
Developer fees
-
2,137,288
-
1,752,975
3,890,263
1,738,423
Intergovernmental
1,072,803
707,627
4,614
656,237
2,441,281
1,444,387
Interest
941,327
1,325,902
168,191
405,151
2,840,571
2,187,559
Special assessments
-
994,110
-
-
994,110
991,123
Rental income
-
715,203
584,468
1,299,671
899,398
Sale of land
-
-
-
-
-
1,314,582
Litigation settlement proceeds
40,593
-
-
29,991
70,584
21,538
Miscellaneous
22,712
54,611
-
-
77,323
473,691
Total revenues
9,790,719
8,905,876
12,641,814,
2844,354
34, I82,763
30,834,750
Expenditures:
Current:
General government
2,376,935
-
-
-
2,376,935
1,793,301
Public safety
3,442,056
41,219
-
-
3,483,275
3,227,438
Community services
469,110
-
-
-
469,110
413,142
Planning and development
455,563
2,128,288
151,741
1,171,440
3,907,032
7,489,372
Public works
889,694
1,207,930
-
-
2,097,624
1,800,665
Capital outlay
170,000
-
-
5,318,680
5,488,680
6,841,219
Debt service:
Principal
-
-
1,465,000
-
1,465,000
1,070,000
Interest
-
-
4,888,090
33,410
4,921,500
4,516,289
Payments under pass-through
obligations
-
7,505,062
-
7,505,062
6,797,944
Total expenditures
7,803,358
3,377,437
14,009,893
6,523,530
31,714,218
33,949,370
Excess (deficiency) of
revenues over (under)
expenditures
1,987,361
5,528,439
1 36110793
679 176)
2,468,545
(3,114620
Other financing sources (uses):
Operating transfers in
63,416
1,587,792
1,772,776
5,059,925
8,483,909
9,031,339
Operating transfers out
(277,620)
(4,267,568)
(739,704)
(3,424,016)
(8,708,908)
(9,281,339)
Proceeds of bonds (net of
discount and issue costs)
-
-
8,500,101
-
8,500,101
21,674,803
Payments to refunded bond
escrow agent
-
-
(8,488,199)
-
(8,488,199)
-
Proceeds of advances from City
-
-
604,895
841,320
1,446,,215
604,895
Total other financing
sources (uses)
(214,204)
(2,679376
1,649,869
2,477,229
1,233,118
221029,698
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
1,773,157
2,848,663
281,790
(1,201,947)
3,701,663
18,915,078
Fund balances at beginning
of year, (note 23)
12,366,075
17,552 418
3,738,204
8,282,394
41,939 091
23,119,458
Fund balances at end of year $1.4_,139,232 20,401,081
4,019,994
7,080,447
45,640,754
42,034,536
See accompanying notes to the financial statements.
5
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, 1997
Other financing sources (uses):
Operating transfers in 30,000 63,416 33,416
Operating transfers out (386,598) (277,620) 108,978
Proceeds of bonds (net of discount and issuance costs) - - -
Payments to refunded bond escrow agent - - -
Proceeds of advances from City - -
Total other financing sources (uses)
(356,598)
General Fund
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
Variance -
and other financing uses
(226,066)
Favorable
Fund balances at beginning of year
Budget
Actual
(Unfavorable)
Revenues:
14,139,232 1.999,223
Taxes
$ 5,373,000
5,942,698
569,698
Licenses and permits
725,300
793,689
68,389
Charges for services
576,950
976,897
399,947
Developer fees
_
-
-
Intergovernmental
927,000
1,072,803
145,803
Interest
801,900
941,327
139,427
Special assessments
-
-
-
Rental income
Sale of land
_
-
-
Litigation settlement proceeds
-
40,593
40,593
Miscellaneous
10,000
22,712
12,712
Total revenues
8,414,150
_9,790,719
1,376,569
Expenditures:
Current:
General government
2,482,351
2,376,935
105,416
Public safety
3,613,029
3,442,056
170,973
Community services
542,287
469,110
73,177
Planning and development
778,800
455,563
323,237
Public works
649,302
889,694
(240,392)
Capital outlay
217,849
170,000
47,849
Debt service:
Principal
-
-
-
Interest
Payments under pass-through obligations
-
-
-
Total expenditures
8,283,618
7,803 358
480,260
Excess (deficiency) of revenues
over (under) expenditures
130,532
1,987,361
1,856,829
Other financing sources (uses):
Operating transfers in 30,000 63,416 33,416
Operating transfers out (386,598) (277,620) 108,978
Proceeds of bonds (net of discount and issuance costs) - - -
Payments to refunded bond escrow agent - - -
Proceeds of advances from City - -
Total other financing sources (uses)
(356,598)
(214,204) 142,394
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
and other financing uses
(226,066)
1,773,157 1,999,223
Fund balances at beginning of year
12,366,075
12,366,075
Fund balances at end of year
$12,140,009
14,139,232 1.999,223
See accompanying notes to the financial statements.
6
EXHIBIT CC
Special Revenue Funds Debt Service Funds Capital Projects Funds
Variance- Variance- Variance -
Favorable Favorable Favorable
I3ud ,et Actual (Unfavorable) Budget Actual (Unravorable) Bud�,,ct Actual (Ujifayorable)
3,063,850 2,971,135 (92,715)
53,100 2,137,288 2,084,188
1,018,746 707,627 (311,119)
348,750 1,325,902 977,152
1,021,100 994,110 (26,990)
341,000 715,203 374,203
120,000 54,611 (65,589)
5,966,546 _ 8,905,876 2,939,330
12,255,500
11,884,541
(370,959)
-
-
-
-
-
- 8,282,394
1,779,814
1,752,975
(26,839)
5,000
4,614
(386)
1,915,988
656,237
(1,259,751)
36,200
168,191
131,991
156,150
405,151
249,001
607,931
584,468
(23,463)
-
-
-
-
-
-
-
29,991
29,991
1.2,904,631
12,641,814
(262,817
3.8851,952
2,844,354
(1,007,598)
41,219 (41,219) - - - - - -
2,838,575 2,128,288 710,287 427,850 151,741 276,109 2,933,259 1,171,440 1,761,819
1,301,872 1,207,930 93,942 - - - - - -
- - - - - - 14,479,910 5,318,680 9,161,230
- - - 1,465,000 1,465,000 - - - -
5,014,833 4,888,090 126,743 - 33,410 (33,410)
7,678,958 7,505,062 _ 173,896 - - -
4,1.40,447 3,377,437 763,010 14,586,641 14,009.893 576,748 17,413.169 6,523,530 10,889,§39
1,826,099 5,528,439 3,702,340 1,682,010) (1,368,079} 313,931 (13,561,217) (3,679,176) 9,882,041
1,485,740 1,587,792 102,052 1,875,252 1,772,776 (102,476) 12,194,336 5,059,925 (7,134,411)
(6,633,317) (4,267,568) 2,365,749 (1,271,500) (739,704) 531,796 (6,781,102) (3,424,016) 3,357,086
- - - - 8,500,101 8,500,101 - - -
- - - - (8,488,199) (8,488,199) - - -
- 728,400 604,895 (123,505 - 841,320 841,320
(5,147,577) (2,679,776} 2,467,801 1,332,152 1,649,869 317,717 5,413,234 2,477,229 (2,936,005
(3,321,478) 2,848,663 6,170,141
(349,858)
281,790
631,648 (8,147,983)
(1,201,947) 6,946,036
17,552,418 17,552,418 -
3 7_--,__388,,204
3,738,204
- 8,282,394
8,282,394 -
14,230,940 20.401,081 6.170,141
3,388,346
4,0I9,994
631,648 134.411
7,080,447 6,946.036
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, 1997
Operating transfers:
Operating transfers in
225,000
Totals
250,000
Total operating transfers
225,000
(Memorandum Only)
250,000
Internal Service
1997
1996
252,586
Operating revenues:
252,586
252,586
-
Charges for services
$135,913
135,913
-
Operating expenses:
Fuel and oil
22,732
22,732
-
Maintenance and parts
49,474
49,474
-
Vehicle and insurance
19,908
19,908
-
Administration
3,845
3,845
-
Depreciation
34,192
34,192
-
Total operating expenses
130,151
130,151
-
Operating income (loss)
5,762
5,762
-
Non-operating revenues (expenses):
Interest
25,382
25,382
2,586
Total non-operating revenues (expenses)
25,382
25,382
2,586
Net income (loss) before operating transfers
31,144
31,144
2,586
Operating transfers:
Operating transfers in
225,000
225,000
250,000
Total operating transfers
225,000
225,000
250,000
Net income (loss)
256,144
256,144
252,586
Retained earnings at beginning of year
252,586
252,586
-
Retained earnings at end of year508
730
508,730
252,586
See accompanying notes to the financial statements.
8
CITY OF LA QUINTA
Combined Statement of Cash Flows - All Proprietary Fund Types
Year ended June 30, 1997
Internal Service
Cash flows from operating activities:
Cash received from other customers $135,913
Cash payments to suppliers for goods and services8( 8,442)
Net cash provided by (used for)
operating activities 47,471
Cash flows from non -capital financing activities:
Cash received from other funds 225,000
EXHIBIT EE
Totals
Memorandum Onl
1997 1996
135,913 -
8f 8,442)
47,471 -
225,000 249,881
Net cash provided by (used for)
non -capital financing activities 225,000 225,000 249,881
Cash flows from investing activities:
Interest received on investments 28,087 28,087 -
Net cash provided by (used for)
investing activities 28,087 28,087 -
Net increase (decrease) in cash
and cash equivalents 300,558 300,558 249,881
Cash and cash equivalents at beginning of year
249,881
249,881 -
Cash and cash equivalents at end of year550
439
550,439 249,881
Reconciliation of operating income to net cash
provided by operating activities:
Operating income (loss)
5,762
5,762 -
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
34,192
34,192 -
Increase (decrease) in accounts payable
7,517
^ 7,517 -
Net cash provided by (used for) operating activities
$ 47,471
47,471 -
Non -Cash Investing, Capital, and Financing Activities
For the year ended June 30, 1997, fixed assets with a net book value of $628,720 were
transferred to the internal service fund from the general fixed assets account group.
See accompanying notes to the financial statements.
9
CITY OF LA QUINTA
Notes to the Financial Statements
Year ended June 30, 1997
1 Summm of Sigpificant Accounting Policies
(a) Reporting Entity
The City of La Quinta ("the City") 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 conununity services including public safety, highway and
street maintenance, health and social services, cultural and leisure services, public
improvements, planning and zoning services, and community development
services.
The accounting policies of the City conform to generally accepted accounting
principles as applicable to governments. As required by generally accepted
accounting principles, these financial statements present the government and its
component units, which are entities for which the government is considered to be
financially accountable. The City is considered to be financially accountable for
an organization if the City appoints a voting majority of that organization's
governing body and the City is able to impose its will on that organization or
there is a potential for that organization to provide specific financial benefits to or
impose specific financial burdens on the City. The City is also considered to be
financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval from the City). In certain cases, other organizations are included as
component units if the nature and significance of their relationship with the City
are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
All of the City's component units are considered to be blended component units.
Blended component units, although legally separate entities, are, in substance,
part of the government's operations and so data from these units are reported with
the interfund data of the primary government. The following organizations are
considered to be component units of the City:
La ���inta Redevelopment Agency
The La Quinta Redevelopment Agency C'the 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 SwLi of Significant Accounting Policies Continued
City -of La Ouinta Public Financina Authori
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 financing necessary for the construction of various public
improvements through the issuance of debt. 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) Fund Accountin
The basic accounting and reporting entity is a "fund". A fund is defined as an
independent fiscal and accounting entity with a self -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 Funds
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)
(1) Summary of Significant Accounting Policies, (Continued)
Capital Projects Funds
Capital Projects 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 Long -Term Debt Account Grow
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� Summary of Significant Accounting.Policies. (Continued)
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) Sudgetry Data
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds_ The City Manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department. 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. Material supplemental appropriations were not necessary for the reported
period.
(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
Summn of Si cant 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 34, 1997,
The County of Riverside assesses, bills, and collects property taxes for the City.
(i) ProM Held for Resale
Land held for resale represents property acquired by the Agency for resale. The
property is recorded at the lower of original cost or the net realizable value of the
property, once such amount can be determined. A reserve of the noncurrent
portion of this asset has been established in the reporting governmental funds to
show that such amounts are not available for appropriation.
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 34 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 mncreases 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 Summ of Significant Accounting Policies Continued
(k) Claims and Judgment
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) Postemployment Benefits
The City does not provide postemployment benefits (other than pension benefits)
to 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) A1212licabilily of FASB Pronouncements to ProRrietaKy Funds
The City applies all applicable Governmental Accounting Standards Board
(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.
16
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(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.
(2) Cash and Investments
Cash and investments held by the City at June 30, 1997 consisted of the following:
Demand deposits $ 60,830
State of California Local Agency Investment Fund 12,181,290
United States Treasury Bills 7,987,126
Deferred compensation mutual funds 751,836
Federal Home Loan Bank 2,995,634
FNMA 2.000.714
Total cash and investments held by the City $25,977,430
Cash and investments held by fiscal agent at June 30, 1997 consisted of the following:
United States Treasury Bills $ 6,562,374
Mutual Funds - First American Treasury Obligation Fund 738,234
Mutual Funds - Pacific Horizons Treasury Fund 357
Mutual Funds - Pacifica Treasury Money Market Fund 2,012,075
FNMA 3,488.400
Total cash and investments held by fiscal agent $11801.440
The City and its component units are generally authorized under state statutes and local
resolutions to invest in the following types of investments:
Investment Tyne Maximum %
Savings/operating accounts 85%
Certificates of deposit 60%
U.S. government and agency securities 75%
Government Pool 40%
Money market and short or intermediate term bond funds 60%
17
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(2) Cash and Investments,�Continued)
Deferred compensation investments held in a fiduciary capacity for City employees
include investments legally authorized for the City as well as investments in various types
of mutual funds.
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 law also allows financial institutions to secure City deposits by
pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits.
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
$268,816 384,202
Bank Book
Balance Balance
653.018 60,830
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.
18
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(2 Cash and Investments, (Continued)
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.
Investments held by fiscal agent:
U.S. Treasury Bills
FNMA
6,562,374
3,488,400
$12,983,474 10,050,774
Investments held by the City not subject to categorization:
Investment in State of California Local
Agency Investment Fund
Investment in deferred compensation mutual funds
Investments held by fiscal agent not subject to categorization:
Investment in mutual funds:
First American Treasury Obligation Fund
Pacific Horizons Treasury Fund
Pacifica Treasury Money Market Fund
19
- 6,562,374 6,592,429
— 3,48$ 400 3,497,611
23,034,248 23,082,480
12,181,290 12,233,428
751,836 751,836
738,234 738,234
357 357
2.012.075 2,012,075
138,718,040 38,818,410
Market
Cate Qry
Carrying
Contract/
1 2
3 Amount
Value
Investments held by the City:
U.S. Treasury Bills
$ 7,987,126 -
- 7,987,126
7,989,370
Federal Home Loan Bank
2,995,634 -
- 2,995,634
2,995,890
FNMA
2,000,714 -
- 2,000,714
2,007,180
Investments held by fiscal agent:
U.S. Treasury Bills
FNMA
6,562,374
3,488,400
$12,983,474 10,050,774
Investments held by the City not subject to categorization:
Investment in State of California Local
Agency Investment Fund
Investment in deferred compensation mutual funds
Investments held by fiscal agent not subject to categorization:
Investment in mutual funds:
First American Treasury Obligation Fund
Pacific Horizons Treasury Fund
Pacifica Treasury Money Market Fund
19
- 6,562,374 6,592,429
— 3,48$ 400 3,497,611
23,034,248 23,082,480
12,181,290 12,233,428
751,836 751,836
738,234 738,234
357 357
2.012.075 2,012,075
138,718,040 38,818,410
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
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, 1997 the carrying
amount (at amortized cost) of the pool was $28,515,398,747 and the estimated market
value of the pool (including accrued interest) was $28,637,448,331. The City's
proportionate share of the pool's market value (as determined by LAIF) as of June 30,
1997 was $12,233,428. 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.
Q) Prapeq 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, 1997 are as
follows:
The following is a summary of proprietary fund type fixed assets for the City at June 30,
1997:
Building improvements
Equipment
Vehicles
Less accumulated depreciation
Total
21
Internal Service Fund
$613,890
98,339
314,330
432 031)
$594,528
Transfers
Balance at
to Proprietary
Balance at
Jude 30. 1996
Additions
Retirements
Funds
June 30, 1997.
Land
$13,368,910
-
(88,000)
-
13,280,910
Equipment and furniture
1,058,572
83,444
(95,163)
(98,339)
948,514
Vehicles
475,382
63,305
-
(314,330)
224,357
Leasehold improvements
201,070
-
-
-
201,070
Buildings
12,404,019
5.565
-
(613,890
11,795,694
Total
$27,507953
152.314
CLE,.163
1 026 559
26,450.545
The following is a summary of proprietary fund type fixed assets for the City at June 30,
1997:
Building improvements
Equipment
Vehicles
Less accumulated depreciation
Total
21
Internal Service Fund
$613,890
98,339
314,330
432 031)
$594,528
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
5 General Lon -Tenn Debt
Changes in general long-term debt for the year ended June 30, 1997 were as follows:
6 Tax Allocation Bonds
As of June 30, 1997, 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 on 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 rate is 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.
Balance at
Balance at
July 1, 1996
Additions Deletions
June 30, 1997
City:
Compensated absences payable
$ 298,818
51,835 -
350,653
RDA Project Area No. 1:
Tax allocation bonds
33,995,000
- (1,175,000)
32,820,000
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
1,276,660
- (707,650)
569,010
Coachella Valley Unified School District
11,797,368
- (526,560)
11,270,808
Advances from other funds*
2,574,487
1,075,365 -
3,649,852
RDA Project Area No. 2:
Tax allocation bonds
5,625,000
- (120,000)
5,505,000
Housing tax allocation bonds
4,733,514
- -
4,733,514
Due to County of Riverside
1,408,437
395,081 -
1,803,518
Advances from other funds*
4,079,365
370,853 -
4,450,218
Financing Authority:
Revenue bonds
8,200,000
8,790,000 x200,000]
88,790 000
Total
$102 22,_7 22733
10. 683 134 (1 Q729,210]
102,181,197
* Advances from other funds are money owed by the La Quinta
Redevelopment Agency to the City of
La Quinta, which also include interest accrued on the advances.
6 Tax Allocation Bonds
As of June 30, 1997, 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 on 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 rate is 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.
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
Tax Allocation Bonds (Continued)
Series 1991, (Continued
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,
1997 was $7,700,000.
Series 1992
La Quinta Redevelopment Project Tax Allocation Bonds, Series 1992, were issued by the
Agency on 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, 1997, the amounts
deposited in the reserve and escrow funds were $512,281 and $2,578, respectively. The
principal balance of outstanding bonds at June 30, 1997 was $5,505,000.
Series 1994
Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on May 5,
1994, in the amount of $26,665,000 to refund the outstanding aggregate principal amount
of the Agency's Tax Allocation Bonds, Series 1989 and 1990. The remaining proceeds
were used to finance certain capital improvements within the La Quinta Redevelopment
Project Area No. 1.
Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest on and principal of the
bonds are payable solely from pledged tax increment revenues. The bonds are not 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, 1997 is $25,120,000.
23
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
( b) Tax Allocation Bonds, (Continued)
Series 1994 Continued
A portion of the bond proceeds, in the amount of $27,922,526, was 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, 1997, $6,500,000 and $16,460,000 of the 1989 and
1990 defeased bonds are outstanding, respectively.
7 1995 Housing Tax Allocation Bonds TABS
La Quinta Redevelopment Project Areas No. 1 and 2 1995 Housing Tax Allocation Bonds
were issued by the Agency on 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, 1997 is $22,455,000.
(8,) 1996 Lease Revenue Refiinding Bonds
On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue
Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the
amount of $8,200,000 and to provide funds for construction of remaining improvements
to the La Quinta Civic Center site.
The bonds consist of $3,630,000 of serial bonds and $5,160,000 of term bonds. The
serial bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts
mature between October 1, 1997 to October 1, 2008 in amounts ranging from $285,000 to
$380,000. The term bonds accrue interest at a rate of 5.55% and mature on October 1,
2018.
A surety agreement has been purchased to satisfy the bond reserve requirement. The
amount of principal outstanding on the 1996 Lease Revenue Refunding Bonds at June 30,
1997 was $8,790,000.
24
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(8) 1996 Lease Revenue RefundiLig,Bonds, (Continued)
A portion of the $8,790,000 bond proceeds, along with the remaining reserve from the
1991 Local Agency Revenue Bonds, was used to purchase state and local government
securities that were deposited in a trust with an escrow bank to provide for all future debt
service payments of the outstanding 1991 Local Agency Revenue Bonds of $8,200,000.
As a result, these certain bonds are considered to be defeased and the liability has been
removed from the general long-term debt account group of the Authority. This advance
refunding resulted in a debt service savings in the amount of $338,148 and an economic
gain (difference between the present values of the debt service payments on the old and
new debt) of $211,318. At June 30, 1997, the amount of defeased bonds outstanding is
$8,200,000.
(9) Due to County of Riverside
Project Area No. 1
Based on an agreement amended December 21, 1993 between the Agency, the City of La
Qiiinta, 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 CoLinty over a payment
schedule through June 30, 2006 in annual amounts ranging from $385,764 to $2,190,473.
Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1997 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, 1997 was $1,803,518.
25
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
10 Notes Pa able to Desert Sands Unified School District SD
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, 1997 totaled
$569,010.
(11) Notes Payable to Coachella Valley Unified School District
An agreement was entered into in 1991 between the Agency, the City of La Quinta and
the Coachella Valley Unified School District (District) which provides for the payment to
the District 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 furtherance of the Redevelopment Plan for Project Area No. 1. This tax
increment is paid to the District over a payment schedule through August 1, 2012, in
amounts ranging from $474,517 to $834,076, for a total amount of $15,284,042. Tax
increment payments outstanding at June 30, 1997 totaled $11,270,808. The District
agrees to use such funds to provide classroom and other construction costs, site
acquisition, school busses, and 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, which are accounted for as advances
from the City:
Agency expenditures
incurred by the City:
Project Area No. 1
Project Area No. 2
Total
Balances at Balances at
July 1, 1996 Proceeds Repayments June 30. 1997
$2,574,487 1,075,365
4,079,365 370,853
$6,653,852 1,446.218
3,649,852
4.450,218
8,100,070
There is no stipulated repayment date established for the City advances. Interest is paid
at 10% per year.
26
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
12 Advances To and From Other Funds Continued
In addition, the Agency elected to borrow $511,903, and $39,135 from Project Area No.
1 and Project Area No. 2, respectively, of the Low/Moderate 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/Moderate Income Housing Special Revenue Funds. The Agency has ten years to
repay this loan. The Agency has elected to make repayment in the tenth year (2003-04).
27
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
13 Debt Service Requirements to Maturit
The minimum annual requirements (including sinking fund requirements) to amortize the
long-term debt of the City as of June 30, 1997 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.
28
1991
Pass-through Agreements
Lease
1995
Revenue
Desert
Coachella
County
Ending
Housing
1991
1994
1992
Refunding
Sands
Valley
of
June 30
TABS
TABS
TABS
TABS
Bonds
USD
USD
Riverside
Total
1997-98
$ 1,594,915
723,988
2,632,040
502,127
734,623
569,010
580,683
773,528
8,110,914
1998-99
1,591,790
723,210
2,625,330
510,065
684,573
-
621,976
773,528
7,530,472
1999-00
1,592,570
721,475
2,624,696
501,805
679,670
649,927
773,528
7,543,671
2000-01
1,592,187
723,625
2,624,885
508,265
678,955
670,817
1,803,705
8,602,439
2001-02
1,590,690
724,500
2,620,315
503,500
682,178
684,233
1,803,705
8,609,121
2002-03
1,592,820
719,259
2,620,855
508,100
679,435
697,918
1,803,705
8,622,092
2003-04
1,588,538
722,744
2,599,465
501,550
680,830
711,877
2,190,473
8,995,477
2004-05
1,587,990
719,794
2,612,140
509,490
681,220
726,114
2,190,473
9,027,221
2005-06
1,590,890
720,409
2,597,700
505,890
680,575
740,636
2,190,473
9,026,573
2006-07
1,645,502
719,431
2,593,456
506,400
678,865
-
755,449
-
6,899,103
2007-08
1,646,470
716,860
2,590,816
505,650
675,880
-
770,558
6,906,234
2008-09
1,645,125
717,535
2,584,232
503,850
676,450
-
785,968
6,913,160
2009-10
1,641,540
716,297
2,578,160
506,000
675,280
-
801,688
6,918,965
2010-11
1,640,840
713,080
2,571,868
506,750
672,525
-
817,722
-
6,922,785
2011-12
1,641,650
712,720
2,569,442
506,100
673,521
-
834,076
6,937,509
2012-13
1,638,750
714,959
2,560,155
509,050
673,130
-
421,166
-
6,517,210
2013-14
1,638,300
709,799
-
505,250
671,351
-
-
-
3,524,700
2014-15
1,635,150
712,079
-
505,050
673,046
-
3,525,325
2015-16
1,634,150
-
-
503,100
673,076
-
-
-
2,810,326
2016-17
1,630,150
-
-
509,400
671,441
-
2,810,991
2017-18
1,632,850
-
-
508,250
668,141
-
2,809,241
2018-19
1,627,100
-
-
668,038
-
2,295,138
2019-20
1,627,750
-
-
-
-
1,627,750
2020-21
1,624,500
-
-
-
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
-
-
-
-
-
-
1,613,150
2025-26
1,611,950
1.611.950
Principal
and
interest
46,959,317
12,931,764
41,605,555
10,625,642
14,932,803
569,010
11,270,808
14,303,118
153,198,017
Less:
Interest
24,504,317
5,231,764
16,485,555
5,120,642
6,142,803
3,785,980
61,271,061
Total
principal$22,455,000
__7,700,000
25,120.000
5,505,000
8,790,000
569010
11,270,808
10,517,138
91,926.956
28
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
1 Debt Without Governmental Commitment
The City of La Quinta sold Improvement Bonds issued pursuant to the California State
Improvement Act of 1915. The Bonds are payable from the annual installments collected
on the regular property tax bills sent to owners of property having unpaid assessments
levied against land benefited by the projects. The Bonds are neither general obligations
of the City nor any other political subdivision and the full faith and credit of the City is
not pledged for repayment thereof. The City is not liable for repayment of the debt, but is
only acting as agent for the property owners in collecting the assessments and forwarding
the collections to bondholders. The Bonds do not constitute an obligation of the City;
therefore, they are not included 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, 1997:
Assessment Assessment Assessment Assessment Assessment
District No. 88-1 District No. 89-2 District No. 90-1 District No. 91-1 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
at June 30, 1997
$440,000
660,000
770,000
1,570,000
1,550,000
15 Reserves 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, 1997 consisted of the following reserves and designations:
29
Totals
General
Special
Debt
Capital
(Memorandum
Fund
Revenue
Service
Projects
Only)
Reserved for:
Bond reserve requirement
$ -
-
512,231
-
512,231
Bond projects
-
10,809,165
-
1,467,662
12,276,827
Advances to other funds
8,100,070
551,038
-
-
8,651,108
Prepaid expenses
62,759
-
276,546
-
339,305
Deposits
39,812
-
-
-
39,812
Notes receivable
-
2,452,283
-
99,791
2,552,074
Property held for resale
-
86,320
-
-
86,320
Subtotal
8,202,641
13,898,806
788,777
1,567,453
24,457,677
29
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
15 Reserves and Designations of Fund Balances Continued
Unreserved:
Designated for:
Debt service
Emergency reserve
Cash flows
Operations/projects/transfers
Undesignated
Subtotal
Total fund balances
( 16) Retained Earnings
Totals
General Special Debt Capital (Memorandum
Fund Revenue Service Pr_ ejects Only)
-
- 3,232,687 -
3,232,687
3,577,809
- - -
3,577,809
1,300,000
- - -
1,300,000
1,058,782
6,502,275 - 5,512,994
13,074,051
-
- 1470 -
(1,470)
5,936,591
6,502,275 3,231,217 5,512,994
21,183,077
$1.4,139,232
20,401,081 4,019,994 7.080.447
45,640,754
As of June 30, 1997, all of the retained earnings in the proprietary fund were 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 Compensation
The City has made available to its employees a deferred compensation plan, which was
created in accordance with Internal Revenue Code Section 457, whereby employees
authorize the City to defer a portion of their salary and deposit it 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, 1997, the
deferred compensation liability included in an Agency Fund was carried at its market
value of $751,836.
All amounts of compensation deferred under the plan, all property and rights purchased
with those amounts, and all income attributable to those amounts, property, or rights, are
solely the property and rights of the City, subject only to the claims of the City's general
creditors. Because the City handles these funds in a fiduciary capacity, the Deferred
Compensation Fund is reported as an Agency Fund in the accompanying financial
statements. During the year ending June 30, 1998, the City plans to establish these assets
in the trust arrangement prescribed by Internal Revenue Code Section 457(g).
30
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
1$ City 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 benefit 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 f oi- the year ended June
30, 1997 was $2,804,962. The total payroll for the year was $2,828,445.
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 Waizes
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.
31
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(18) CityEEm2loyees Retirement Plan (Refined, Benefit Pension Plant (Continued)
Funding Status and Pro ress, (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 and 1997 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 conxpounded 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
32
$ 389,382
1,069,880
743,673
126.985
$2,329,920
2,868,038
$ (538,118)
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
18 City Employees Retirement Plan Defined Benefit Pension Plan Continued
Actuarially Determined Contribution Reuirements and Contribution Made
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.
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.
An analysis of the 1996-97 contribution in the amount of $417,429 is not available at this
time. The contribution to PERS for the year ended .lune 30, 1996 of $424,546 was made
in accordance with actuarially determined requirements computed through an actuarial
valuation performed as of June 30, 1994. The 1995-96 contribution consisted of the
following:
Percent of
Covered
Amount Payroll
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
IIZI,546
16.35%
33
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
18 City -Employees Retirement Plan. Defined Benefit Pension Plan), Continued
Trend Information
For the three years ended June 30, 1995, 1996 and 1997, the total contribution to PERS
was 16.35%, 16.35%, and 14.88%, 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.
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 years ended June 30, 1996 and
1997 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:
34
(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
L/Q
(2)-(l)
Payroll
4 / 5
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
34
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(19) Claims Payable/Self Insurance
The Coachella 'Malley Joint Powers Insurance Authority (CVJPIA) was formed July 25,
1985 under a joint exercise of powers agreement between local governments and special
districts for the purpose of jointly funding programs of insurance under Section 990 of
the California Government Code. The Authority is governed by a Board of Directors,
which is composed of one director from each member organization which maintains
membership in the Liability program. 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 fall under the insurance policies purchased by the City. The CVJPIA
provides for liability insurance coverage in excess of $10,000 with a maximum of
$10,000,000 per claim. Subsequent to June 30, 1996, the City reduced its retention from
$10,000 to $0. As of June 30, 1997, 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.
(20) Accumulated Fund Deficit
The Financing Authority Debt Service Fund reported a deficit fund balance of $1,470 at
June 30, 1997.
UI } Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 1997 exceeded the appropriations of the
following funds/departments:
Budge Actual Variance
General funds:
Legislative
$769,005
826,730
(57,725)
City manager
168,920
191,260
(22,340)
Fiscal services
227,118
246,307
(19,189)
Animal control
126,625
131,122
(4,497)
Building
256,525
263,733
(7,208)
Parks and recreation programs
63,250
63,900
(650)
Special revenue funds:
South Coast Air Quality
-
4,892
(4,892)
Low/Moderate Bond Project Area No. 1
673,013
676,251
(3,238)
Capital projects funds:
Redevelopment Agency Project Area No. 1
801,063
845,531
(44,468)
35
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(22) Contin eg ncies
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.
(23) Restatement of Beginning Fund Balances
The accompanying financial statements reflect adjustments which resulted in the
restatement of beginning fund balances of the Special Revenue Fund for the
Low/Moderate Income Housing Project Area No. 1 and Low/Moderate Bond Project
Area No. 1 in the amounts of $67,120 and $28,325, respectively. These adjustments were
made to adjust the beginning balance of notes receivable. Beginning fund balance is
adjusted as follows:
Special Revenue
Fund balances at beginning of year, as previously reported $17,647,863
Adjustment of notes receivable (95,445)
Fund balances at beginning of year, as restated $17,552,418
2 Due From and To Other Funds
Current interf ind receivables and payables balances at June 30, 1997 are as follows:
Current
Current
Interfund
Interfund
Receivables
Payables
General Fund $17,487
Debt Service Funds:
Financing Authority - 1,470
Capital Projects Funds:
Infrastructure 1,470 17,487
Total $18,957 18,957
36
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(25) Proposition 218
Recent developments, including the voters' enactment of Proposition 218 in November
1996, have affected the manner in which local governments may impose, extend or
increase certain taxes, assessments and property -related fees. The more significant
changes which may affect local government revenue streams are as follows:
1. If there is a majority protest against an assessment, the assessment cannot be
imposed. This means that increasing an assessment requires majority voter
approval.
2. Certain fees are defined as property -related. Some property -related fees require
voter approval at an election; others allow for a majority protest but do not require
an election. Property -related fees must comply with certain substantive
provisions of Proposition 218, which generally limit the amount of fees.
3. Any local tax, assessment, fee or charge is subject to reduction or repeal by
initiative.
Uncertainty exists as to the scope and impact of these developments on local government
revenue streams. Future legislation and litigation may resolve some of these
uncertainties.
37
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38
DESCRIPTION OF FUNDS
FUND TYPE - GENERAL FUND
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.
39
CITY OF LA QUINTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended June 30, 1997
40
Variance -
Favorable
Btid{get
Actual
Unfavorable
General government:
Legislative
$ 769,005
826,730
(57,725)
City manager
168,920
191,260
(22,340)
Economic development
564,750
550,431
14,319
Fiscal services
227,118
246,307
(19,189)
Central services
553,543
383,079
170,464
City clerk
199,015
179.128
19,887
Total general government
2,482,351
2,376,935
105,416
Public safety:
Police
2,526,500
2,447,920
78,580
Building and safety administration
128,850
118,311
10,539
Code compliance
302,225
249,292
52,933
Animal control
126,625
131,122
(4,497)
Building
256,525
263,733
(7,208)
Emergency services
10,140
8,807
1,333
Fire
19,000
10,574
8,426
Civic center building
243.164
212,29
30,867
Total public safety
3,613,029
3,442.055
170,973
Community services:
Senior center
203,952
161,690
42,262
Parks and recreation administration
275,085
243,520
31,565
Parks and recreation programs
63,25063,900
650
Total community services
542,287
469,110
73,177
Planning and development:
Community development administration
203,000
168,747
34,253
Current planning
173,300
146,311
26,989
Advanced planning
402,500
140,505
261,995
Total planning and development
778.800
455,563
323.237
40
CITY OF LA QUINTA
General Fund
Schedule of Expenditures - Budget and Actual
(Continued)
41
Variance -
Favorable
Budget
Actual
(Unfavorable)
Public works:
Public works administration
166,203
147,614
18,589
Development and traffic
414,750
310,527
104,223
Maintenance/operations - St.
400,242
374,978
25,264
Interfund reimbursements
(331.893)
56,575
(388,468)
Total public works
649,302
889,694
(240,392)
Capital outlay:
City manager
5,130
5,123
7
Fiscal services
2,882
2,882
-
Central services
18,457
13,212
5,245
City clerk
7,400
6,322
1,078
Code compliance
12,200
8,291
3,909
Building
10,074
10,073
1
Emergency services
8,660
5,163
3,497
Civic center building
4,600
4,600
-
Senior center
8,500
3,432
5,068
Parks and recreation administration
8,765
6,082
2,683
Parks and recreation programs
1,000
997
3
Public works administration
17,823
6,628
11,195
Development and traffic
19,000
18,929
71
Maintenance/operations - St.
87,858
73,441
14,417
Maintenance/operations - L & L
2,000
1,401
599
Capital projects
3,500
3,424
76
Total capital outlay
217.849
170,000
47,849
Total expenditures8
283 618
7,803,358
480,260
41
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42
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.
The City of La Quinta has the following twelve Special Revenue Funds:
State Gas Tax Fund - To account for gasoline allocations made by the State of California. These
revenues are restricted by the State to expenditures for street -related purposes only.
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.
Lighting and Landscape Special Assessment District 89-1 Fund - To account for special
assessments levied on real property and the expenditure thereof from City-wide lighting and
landscape maintenance and improvements.
State Law Enforcement Block Grant (SLEBG) Fund - To account for state funded "Citizens for
Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements
frontline police services such as anti -gang community crime prevention.
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.
Local Law Enforcement Block Grant LEBG Fund - To account for Federal Bureau of Justice
Block Grant program which may be used for the purpose of reducing crime and improving public
safety.
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 properly 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.
43
CITY OF LA QUINTA
Special Revenue Funds
Combining Balance Sheet
June 30, 1997
Community Lighting
State Service Federal and Village
Gas Tax Projects Assistance Landscape SLEBG Quimby Parkin
Assets
Cash and investments $65,073 544,093 - 267,317 1,952 11,498 26,017
Cash with fiscal agent - - - - - - -
Accounts receivable - - - 39,622 - - -
Interest receivable - - - - - - -
Notes receivable - - - - - - -
Due from other governments -
Advances to other funds - - - - - -
Property held for resale - - - -
Total assets S65.071 544 b93 - 306,939 1,952 11,498 26,017
Liabilities and Fund Balances
Liabilities:
Accounts payable
-
Accrued expenses _ - -
- - - -
Deposits payable - - -
34,840 - - -
Contracts payable - - -
- - - -
Due to other funds - - -
- - - -
Total liabilities - - -
34,840
Fund balances:
Reserved for:
Bond projects - - -
- - - -
Advances to other funds - - -
- - - -
Notes receivable -
Property held for resale - -
Unreserved:
Designated for operations/
projects/transfers 65,073 544,093 -
272,099 1,952 11,498 26,017
Undesignated - - -
- - - -
Total fund balances,
as restated 65,073 544,093
- 272,099 1,952 11,498 26,017
Total liabilities and
fund balances $65,073 544,093
306,939 1,952 11,498 26,017
44
EXHIBIT A-1
Low/
Low/
138,396 6,363,933
5,690,910
Moderate
Moderate
Low/
Low/
Urban Income
Income
Moderate
Moderate
South Coast Forestry Housing-
Housing-
Bond-
Bond- Totals
Air uaiity LLEBG Grant PA No. 1
PA No. 2
PA No. 1
PA No. 2 1997 1996
41,108 19,534
41,108 19,534
- 3,436,967
1,144,080 667,898
138,396 6,363,933
5,690,910
- -
- 7,489,554
3,319,611 10,809,165
11,802,982
- 15,133
- 173,185
9,249 237,189
5,951
- -
- 24,091
- 24,091
66,357
- 2,452,283
- -
- 2,452,283
95,445
- 341
896 -
- 1,237
23,489
- 511,903
39,135 -
- 551,038
-
- 86,320
- -
- 86.320
551.038
6,502 947 f ,184,111 8,354,728 3,,467,256 20,525,256 18,236.172
- 2,288 1,671 4,565 2,405 10,929 18,066
34,000 - - - 34,000 -
- - - 14,398 - - - 49,238 48,982
- - 30,008 - - - 30,008 510,756
- - - - - - - 10,505
- - - 80,694 1,671 4,565 2,405 124,175 588,309
- _ -
-
7,489,554
3,319,611
10,809,165
-
- - - 511,903
39,135
-
-
551,038
551,038
- - - 2,452,283
-
-
-
2,452,283
95,445
- - - 86,320
-
-
-
86,320
-
41,108 19,534 - 3,371,747
1,143,305
860,609
145,240
6,502,275
17,001,380
41,108 19,534 - 6,422,253
1,182,440
835_,0.163
3,464,851
20,401,081
17,647,863
41,108 19,534 - 6,502,947
1,184,1 l l
8,354728
3,467,256
20,525,256
18,236,172
45
CITY OF LA QUINTA
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1997
Community Lighting
State Service Federal and Village
Gas Tax Proiects Assistance Landscape SLEBG Ouimby Parkin
Revenues:
Taxes $
Developer fees -
-
-
-
-
17,941
-
Intergovernmental 334,527
-
30,000
-
41,992
-
_
Interest 3,358
33,254
212
4,486
1,179
2,673
1,574
Special assessments -
-
-
994,110
-
-
-
Rental income -
-
-
-
Sale of land -
Miscellaneous -
Total revenues 337,885
33,254
30,212
998,596
43,171
20,614
1,574
Expenditures:
Current:
Public safety -
-
-
-
41,219
Planning and development -
-
-
-
_
Public works 306,942
-
-
900,988
-
-
-
Capital outlay -
-
-
-
Debt service:
Interest
Total expenditures 306,942
-
-
900,988
41,219
-
-
Excess (deficiency) of
revenues over (under)
expenditures 30,943
33,254
30,212
97,608
1,952
20,614
1,574
Other financing sources (uses):
Operating transfers in -
-
-
-
-
_
_
Operating transfers out -
(90,690)
(95,188)
(533)
-
(3,779)
-
Proceeds of bonds (net of
discount and issuance costs) -
-
-
-
-
_
Total other financing
sources (uses)-
9( 0,690)
95 188
533
-
(3,779
-
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and
other financing uses 30,943
(57,436)
(64,976)
97,075
1,952
16,835
1,574
Fund balances (deficit) at
beginning of year, as restated 34,130
601,529
64,976
175,024
-
5 337
24,443
Fund balances at end of year S 65,073
544.093
-
272,099
1,952
11,498
26,017
ER
EXHIBIT A-2
4,892 - -
4,892 - -
- - - - 41,219 -
962,900 312,702 676,251 171,543 2,128,288 5,454,978
- - - - 1,207,930 987,313
- - - 3,886,267
- - - - - 4,611
962.900 312,702 676,251 171,543 3,377,437 10,333,169
16,510 27,583 255,699 4,435,750 458,264 163,972 (45,496 5,528,439 (3,399,652)
- - 102,052 - 43,313 1,442,427 1,587,792 1,853,715
(8,049) (255,699) (1,567,542) (273,700) (1,544,479) (427,909) (4,267,568) (6,429,392)
- - - 21,674,803
L&2.49 (255,699 1465.490 (273,700 (1,501,166 1,014,518 (2,679,776 17,099,126
16,510 19,534 - 2,970,260 184,564 (1,337,194) 969,022 2,848,663 13,699,474
24,598 - - 3,451,993 997,876 9,687,357 2,495,829 17,552,418 3,948,389
41,108 19,534 - 6,422,253 .1,182,440 8,350,163 3,464,851 2040I,081 17,647,863
47
Low/
Low/
Moderate
Moderate
Low/
Low/
Urban
Income
Income
Moderate
Moderate
South Coast
Forestry
Housing-
Housing-
Bond-
Bond-
Totals
Air Quality
LLEBG
Grant
PA No. 1
PA No. 2
PA No. 1
PA No. 2
1997
1996
-
-
-
2,268,971
702,164
-
-
2,971,135
2,952,336
-
-
-
2,119,347
-
-
-
2,137,288
3,190
18,998
26,411
255,699
-
-
-
-
707,627
344,235
2,404
1,172
-
573,896
68,802
506,845
126,047
1,325,902
757,006
-
-
-
-
-
-
-
994,110
991,123
-
-
-
436,436
-
278,767
-
715,203
328,059
-
-
-
-
-
-
-
1,314,582
-
-
-
-
54,611
-
54,611
242,986
21,402
27,583
255,699
5,398,650
770,966
8410,223
126,047
8,905,876
6,933,517
4,892 - -
4,892 - -
- - - - 41,219 -
962,900 312,702 676,251 171,543 2,128,288 5,454,978
- - - - 1,207,930 987,313
- - - 3,886,267
- - - - - 4,611
962.900 312,702 676,251 171,543 3,377,437 10,333,169
16,510 27,583 255,699 4,435,750 458,264 163,972 (45,496 5,528,439 (3,399,652)
- - 102,052 - 43,313 1,442,427 1,587,792 1,853,715
(8,049) (255,699) (1,567,542) (273,700) (1,544,479) (427,909) (4,267,568) (6,429,392)
- - - 21,674,803
L&2.49 (255,699 1465.490 (273,700 (1,501,166 1,014,518 (2,679,776 17,099,126
16,510 19,534 - 2,970,260 184,564 (1,337,194) 969,022 2,848,663 13,699,474
24,598 - - 3,451,993 997,876 9,687,357 2,495,829 17,552,418 3,948,389
41,108 19,534 - 6,422,253 .1,182,440 8,350,163 3,464,851 2040I,081 17,647,863
47
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, 1997
Revenues:
Intergovernmental
Interest
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
318,500 306.942 11,558 114,722
318,500 306,942 11,558 114,722
- 30,943 30,943 208,639
- - Q91.0-00)
20( 0,000)
- 30,943 30,943 8,639
34,130 34,130 - 25,491
34,130 65,073 30,943 34,130
48
Variance -
Favorable
1996
BUdg t Actual
(Unfavorable)
Actual
$318,500 334,527
16,027
323,361
- 3,358
3,358
-
3I8,500 337,885
19,385
323,361
318,500 306.942 11,558 114,722
318,500 306,942 11,558 114,722
- 30,943 30,943 208,639
- - Q91.0-00)
20( 0,000)
- 30,943 30,943 8,639
34,130 34,130 - 25,491
34,130 65,073 30,943 34,130
48
EXHIBIT A-4
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, 1997
49
Variance -
Favorable
1996
Bnid .et
Actual
(Unfavorable)
Actual
Revenues:
Interest
22,800
33,254
10,454
32,145
Total revenues
22,800
33,254
10,454
32,145
Excess (deficiency) of revenues
over (under) expenditures
22,800
33,254
10,454
32,145
Other financing sources (uses):
Operating transfers out620
355)
9� 0,690
529,665
(273,078)
Total other financing sources
(uses)
-(0,0355)(90,69
0)
529,66527{
3,078)
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
(597,555)
(57,436)
540,119
(240,933)
Fund balances at beginning of year
601,529
601,529
-
842,462
Fund balances at end of year
3 974
544,093
540,119
601,529
49
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, 1997
Revenues:
Intergovernmental
Interest
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 at end of year
EXHIBIT A-5
(28,970) (64,976) (36,006) 4,915
64,976 64,976 - 60,161
L-10,006 AO06) 64,976
50
Variance -
Favorable
1996
Budge
Actual
(Unfavorable)
Actual
$357,244
30,000
(32.7,2.44)
1,802
-
212
21.2
3,113
357,244
30,212
(327,032)
4,915
357,244
30,212
(327,032)
4,915
38( 6,214)
(95.188)
291,026
-
(U§,214)
(95,188
291,026
-
(28,970) (64,976) (36,006) 4,915
64,976 64,976 - 60,161
L-10,006 AO06) 64,976
50
CITY OF LA QUINTA
Special Revenue Funds
Lighting and Landscape
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Revenues:
Interest
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 at end of year
EXHIBIT A-6
983,372 900,988 82,384
983,372 900,988 82,384
37,728 97,608
(149,534) 533)
149,534) (533)
(111,806) 97,075
175,024 175,024
$ 63,218 272,099
51
59,880
149,001
149,001
208,881
208881
881
872,591
4,611
877,202
113,921
—(2.254)
(9,254)
104,667
70,357
175,024
Variance -
Favorable
1996
Budget Actual
(Unfavorable)
Actual
$ - 4,486
4,486
-
1,021,100 994,110
2260
991,123
1,021,100 998,5962(
2,504)
991,123
983,372 900,988 82,384
983,372 900,988 82,384
37,728 97,608
(149,534) 533)
149,534) (533)
(111,806) 97,075
175,024 175,024
$ 63,218 272,099
51
59,880
149,001
149,001
208,881
208881
881
872,591
4,611
877,202
113,921
—(2.254)
(9,254)
104,667
70,357
175,024
EXHIBIT A-7
CITY OF LA QUINTA
Special Revenue Funds
SLEBG
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Variance -
Favorable 1996
Budge Actual (Unfavorable) Actual
Revenues:
Intergovernmental
$41,992
41,992
- -
Interest
-
1,179
1,179 -
Total revenues
41,992
43,171
1,179 -
Expenditures:
Current:
Public safety
41,992
41,219
773
Total expenditures
41,992
41,219
773
Excess (deficiency) of revenues
over (under) expenditures
-
1,952
1,952 -
Fund balances at beginning of year
-
-
- -
Fund balances at end of year
$ -
1,952
1,952
52
I 1460 6111WMM�
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, 1997
53
Variance -
Favorable
1996
BLOLd et
Actual
fUnfavorablc)
Actual
Revenues:
Developer fees
$ 53,100
17,941
(35,159)
3,190
Interest
-
2,673
2,673
26,192
Total revenues
53,100
20,6143(
2,486)
29,382
Excess (deficiency) of revenues
over (under) expenditures
53,100
20,614
(32,486)
29,382
Other financing sources (uses):
Operating transfers out
—(a,.430)
(3,779)
48,651
(8Z0.,194)
Total other financing sources
(uses)
—(a..430)
-(3-,779)
48,65182C
0,194)
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
670
16,835
16,165
(790,812)
Fund balances (deficit) at beginning of year5,337
(5,337)
-
7$5,475
Fund balances (deficit) at end of year
L(4.667)
11.498
16,165
5 337)
53
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, 1997
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-9
54
Variance -
Favorable
1996
Budget
Actual
('Unfavorable)
Actual
1,300
1,574
274
1,171
1,300
1,574
274
1,171
1,300
1,574
274
1,171
24,443
24,443,
-
23,272
121,473
26,017
274
24,443
54
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, 1997
Revenues:
Intergovernmental
Interest
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances at beginning of year
Fund balances at end of year
EXHIBIT A-10
55
Variance -
Favorable
1996
Budmet
Actual
(Unfavorable)
Actual
$18,900
18,998
98
19,072
1,000
2,404
1,404
983
19,900
21,402
1,502
20,055
-
4,8924(
,892)
7,885
-
4,8924(
,892}
7,885
19,900
16,510
(3,390)
12,170
24.598
24,598
-
12,428
J14,498
41,108
(3,390)
24,598
55
CITY OF LA QUINTA
Special Revenue Funds
LLEBG
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Revenues:
Intergovernmental
Interest
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 at end of year
EXHIBIT A-11
Variance -
Favorable 1996
Binet Actual (Unfavorable) Actual
$26,411 26,411 - -
- ]J72 1,172 -
26,411 27,583 1,172
26,411 27,583 1,172 -
aO49) (8,049)
- L&Q49
(8,049) r
26,411 19,534
(6,877) -
$�6� 19,534
(6,877) -
56
CITY OF LA QUINTA
Special Revenue Funds
Urban Forestry Grant Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual.
Year ended June 30, 1997
Revenues:
Intergovernmental
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 at end of year
EXHIBIT A-12
Variance -
Favorable 1996
Budge Actual JT1favorable Actual
$255,699 255,699 -
255,699 255,699 - -
255,699 255,699 -
255 699 25( 5,6'99] -
25i 5,699) (255.699) -
57
EXHIBIT A-13
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Income Housing Project Area No. 1 Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
58
Variance -
Favorable
1996
Budget
Actual
(Unfavorable�
Actual
Revenues:
Taxes
$2,435,900
2,268,971
(166,929)
2,338,108
Developer Fees
-
2,119,347
2,119,347
-
Interest
101,550
573,896
472,346
156,539
Rental income
341,000
436,436
95,436
-
Sale of land
-
-
-
118,312
Miscellaneous
-
-
-
1,703
Total revenues
2.878,450
5,398,650
2,520,200
2,614,662
Expenditures:
Current:
Planning and development
1,116,345
962,900
153,445
523,100
Total expenditures
1,116,345
962,900
153,445
523,100
Excess (deficiency) of revenues
over (under) expenditures
1,762,105
4,435,750
2.6733,645
2,091,562
Other financing sources (uses):
Operating transfers in
-
102,052
102,052
1,810,402
Operating transfers out
(1,542,413}
(LL67 542)
(25.129)1
1{ , 01,754)
Total other financing sources
(uses)
(1,542,4413)
(1,465,490)
76,923
708,648
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
219,692
2,970,260
2,750,568
2,800,210
Fund balances at beginning of year,
as restated
3,451,993
3,451,993
-
718,903
Fund balances at end of year
$3,671,685
6,422,253
2,750,568 0,568
3,519,113
58
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Income Housing Project Area No. 2 Fund
Statement of Revenues, Expenditures -ttld Changes
in Fund Balances - Budget and Acttl7l
Year ended June 30, 1997
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):
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-14
Variance -
Favorable
Bridget Actual (Unfavorable)
$627,950 702,164 74,214
19,300 68,802 49,502
647,250 770,966 123,716
1996
Actual
614,228
24,867
1,196
_,270
1,835,365
712,612 312,702
399,910
122,212
712,612 312,702
399,910
122,212
65 362) 458,264
523,626
1,713,153
- -
-
43,313
- (273,700)
(2731700)
2 d6&530)
- (273,700)
273 700(2
12, 5,217)
(65,362) 184,564 249,926 (412,064)
997,876 _997,876 - 1,409,940
$932,514 1,182,440 249,926 997,876
59
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, 1997
Revenues:
Interest
Rental income
Miscellaneous
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
Proceeds of bonds
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,
as restated
Fund balances at end of year
EXHIBIT A-15
Variance -
Favorable 1996
Budget Actual (Unfavorable) Actual
$ 192,850 506,845 313,995 405,101
- 278,767 278,767 328,059
120,000 54.6116( 5,389) _ 241,283
312,850 840.223 527,373 974,443
673,013 676,251 (3,238) 4,642,724
- -- - 1,909,257
673,013 676,251 (3,238) 6,551 981
(360,163) _163,972 524,135 (5,577,538)
43,313 43,313 - -
(1,544,479) (1,544,479) - (1,812,686)
- - - 17,105,906
(1,501,166) 1501166) - 15,293,220
(1,861,329) (1,337,194) 554,135 9,715,682
9,687,357 9,687,357 - -
$7,826,0 8,350,163 524,135 9,715,682
60
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, 1997
Revenues:
Interest
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
Proceeds of bonds
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-16
336,605 171,543 165,062
336,605 171,543 165,062
1996
Actual
106,895
106,895
159,057
1,977,010
_
2,136,067
726,6551 (45,496.) 281,159 (2,029,172)
1,442,427 1,442,427 - -
(2,082,193) (427,909) 1,654,284 (43,896)
4,568,897
(639,766) 1,014,518 1,654284 4,525,001
(966,421)
Variance -
2.4_ 95,829
Favorable
Bu_det
Actual (Unfavorable)
$_ 9,950
126,047 116,097
9,950
126,047 116,097
336,605 171,543 165,062
336,605 171,543 165,062
1996
Actual
106,895
106,895
159,057
1,977,010
_
2,136,067
726,6551 (45,496.) 281,159 (2,029,172)
1,442,427 1,442,427 - -
(2,082,193) (427,909) 1,654,284 (43,896)
4,568,897
(639,766) 1,014,518 1,654284 4,525,001
(966,421)
969,022 1,935,443
2.4_ 95,829
2,495,829
- -
1 529 408
3,464851 1 93_,__5
61
2,495,829
2,495,829
(This page intentionally left blank)
62
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:
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.
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.
63
EXHIBIT B-1
CITY OF LA QUINTA
Debt Service Funds
Combining Balance Sheet
June 30, 1997
64
Financing
Redevelopment
Redevelopment
Totals
Authority
A-gency-PA No. 1
Agency -PA No. 2
1997
1996
Assets
Cash and investments
$ -
2,981,084
1,699,382
4,680,466
3,287,145
Cash with fiscal agent
-
358
524,255
524,613
1,106,131
Prepaid expenses
-
276,546
-
276,546
250,015
Interest receivable
-
-
-
-
35,953
Due from other governments
-
1,366
3,584
4,950
-
Total assets
$ -
3,259,354
2,227,221
5,486,575
4,679,244
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ -
-
-
-
4,356
Accrued expenses
-
139,976
774,097
914,073
385,646
Due to other funds
1,470
-
-
1,470
-
Advances from other funds
-
511,903
39,135
551,038
551,038
Total liabilities
1,470
651,879
813,232
1,466,,581
943,.040
Fund balances:
Reserved for:
Bond reserve
requirement
-
-
512,231
512,231
1,106,873
Prepaid expenses
-
276,546
-
276,546
250,015
Unreserved:
Designated for
debt service
-
2,330,929
901,758
3,232,687
2,381,316
Undesignated
1470
-
-
1470
-
Total fund balances
(1,470
2,607,475
1,413,989 3989
4,019,994
3,73$ 274
Total liabilities
and fund balances
$ -
3,259,354
2,227,221
5,486,575
4,679,244
64
CITY OF LA QUINTA
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1997
Expenditures:
Financing
Redevelopment
Redevelopment
Planning and development
Authority
A.Rency-PA No. 1
Agency -PA No. 2
Revenues:
170,000
Interest
437,950
Taxes
$ -
9,075,885
2,808,656
Intergovernmental
4,614
-
-
Interest
36,209
54,389
77,593
Rental income
584,468
-
-
Total revenues
625,291
9,130,274
2,886,249
Expenditures:
1996
Current:
11,809,354
Planning and development
4,615
Debt service:
159,602
Principal
170,000
Interest
437,950
Payments under pass-
through obligations
-
Total expenditures
612,565
Excess (deficiency) of
revenues over (under)
expenditures
12,726
Other financing sources (uses):
Operating transfers in
-
Operating transfers out
(739,704)
Proceeds of refunding bonds
(net of issuance costs)
8,500,101
Payments to refunded
bond escrow agent
(8,488,199)
Proceeds of advances from City -
Total other financing
sources (uses)
(727,802)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and
other financing uses
(715,076)
Fund balances at beginning
of year
713,606
Fund balances at end of year
$ (1,470)
109,725
1,175,000
3,427,787
5,641,121
10,353,633
(1,223,359)
1,499,076
234.044
1,733,120
509,761
2,097,714
2.607.475
A
37,401
120,000
1,022,353
1,863,941
3,043,695
EXHIBIT B-2
Totals
1997
1996
11,884,541
11,809,354
4,614
1,162
168,191
159,602
584,468
571.339
12,641,814 12,541,457
151,741 213,993
1,465,000 1,070,000
4,888,090 4,502,078
7,505,062 6,797,944
14,009,993 12,584.015
(157,446 Q 36U79] (42,558)
273,700 1,772,776 1,287,060
- (739,704) (1,251,453)
8,500,101 -
- (8,488,199) -
370,851 604,895 604.895
644,551 1,649,869 640,502
487,105 281,790 597,944
926,884 3,738,204 3,140,260
1,413,989 4,019,994 3,738.204
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, 1997
Revenues:
Intergovernmental
Interest
Rental income
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers out
Proceeds of refunding bonds (net of
discount and issuance costs)
Payments to refunded bond escrow agent
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
uses
Fund balances at beginning of year
Fund balances at end of year
EXHIBIT B-3
649,131 625,291 (23,840) 611,563
5,000
4,615
Variance -
170,000
170,000
- 160,000
Favorable
1996
Budget
Actual
(Unfavorable)
Actual
5,000
4,614
(386)
1,162
36,200
36,209
9
39,062
607,931
584,468
(23,463)
571,339
649,131 625,291 (23,840) 611,563
5,000
4,615
385 1,162
170,000
170,000
- 160,000
437,951
437,950
1 536,402
612,951
612,565
386 697,564
36,180 12,726 (23,454) (86,001)
(677,000) (739,704) (62,704)
8,500,101 8,500,101 -
(L48 1998 48(8,199) -
G7��) (727,802) (50,802 -
(640,820) (71.5,076) (74,256) (86,001)
713,606 713,606 - 799,607
$ 72,786 {1,470} 74 256) 713,606
66
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, 1997
Revenues:
Taxes
Interest
Total revenues
I3udat Actual
$ 9,743,650 9,075,885
- 54.389
9.743,6501� 34 274
Expenditures:
1,499,076 (102,476)
Favorable
Current:
(Unfavorable)
Actual
Planning and development
334,000
109,725
Debt service:
1,464,052
Principal
1,175,000
1,175,000
Interest
3,448,664
3,427,787
Payments under pass-through
obligations
5,945,948
5,641,121
Total expenditures
10,903612
10,351633
Excess (deficiency) of revenues
over (under) expenditures
_(1,159,962)
(1,223,359)
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
i0.4.1to-wMOM
Variance -
1,499,076 (102,476)
Favorable
1996
(Unfavorable)
Actual
(667,765)
9,352,441
54.389
47.740
613 376) 9,400,181
224,275 179,868
- 805,000
20,877 3,050,453
304,827 5,180,568
549.979 9,215,889
6( 3,397) 184,292
1,601,552
1,499,076 (102,476)
1,104,037
(394,950)
- 394,950
(601,700)
257.450
234,044 2( 3,406)
234,044
1,464,052
1,733.120 269,068
736,381
304,090 509,761
2,097,714 2,097,714
$ 2,401.804 2,607,475
67
205,671 920,673
- 1,1.77,041
205,671 2,097 714
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, 1997
Revenues:
Taxes
Interest
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Payments under pass-through
obligations
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-5
Variance -
37,401
Favorable
1996
Bu- dget Actual (Unfavorable)
Actual
$2,511,850 2,808,656 296,806
2,456,913
- 77,593 77,593
72,800
2.511,850 2,886,249 374,399
2,529,713
88,850
37,401
51,449
32,963
120,000
120,000
-
105,000
1,128,218
1,022,353
105,865
915,223
1,731010
186� 3 941
130 931)
1,617,376
3,070,078
3,043,695
_26,383
2,670,562
558 228)15t 7446) 400,7821� 44.849)
273,700 273,700 - 183,023
(199,550) - 199,550 (649,753)
470.950 370,85110( x,099} 370,851
545,100 644,551 99,4519(`_5879)
(13,128) 487,105 500,233 (23 6,728)
926,884 926.884 - 1.16_ 3,612
913 756 1,413,989 500,233 962,884
68
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 five Capital Projects Funds:
Infrastructure 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 Improvement Fund - To account for the planning, design and construction of various
capital projects throughout the City of La Quinta and the Redevelopment Agency.
Financing Authority Capital Projects Fund - To account for the Public Financing Authority bond
proceeds that will be used for specific projects and programs of the City.
Redevelopment Agency, Capital Projects Funds 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.
69
CITY OF LA QUINTA
Capital Projects Funds
Combining Balance Sheet
June 30, 1997
Assets
Cash and investments
Cash with fiscal agent
Accounts receivable
Prepaid expenses
Interest receivable
Notes receivable
Due from other funds
Total assets
Liabilities and. Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Deposits payable
Retentions payable
Due to other funds
Total liabilities
Fund balances:
Reserved for:
Prepaid expenses
TDC owner participation agreement
Bond projects
Notes receivable
Unreserved:
Designated for operations/projects
Total fund balances
Total liabilities and fund
balances
Capital Financing
Infrastructure Improvement Authority
$4,600,439 - -
- 738,234
- 435,468 _
1,470 -
4 600 439 436,938 738,234
$ - 317,235 -
52,100 84,826 -
- 17,390 -
- 17,487 -
52,100 436,938 -
- - 738,234
4,548.,339 - -
4A548,339 - 738,234
4 600 439 436,938 738,234
70
EXHIBIT C-1
Redevelopment
Redevelopment
Totals
20,725
Agency -PA No. 1
A envy -PA No. 2
1997
1996
36,456
890,997
5,527,892
6,526,209
-
729,428
1,467,662
2,056,746
-
63,000
498,468
63,000
-
-
-
22,500
-
8,426
8,426
64,786
-
99,791
99,791
-
-
-
1,470
10,505
36,456
1,791,642
7 63,79
8,743,746
31,202 3,022 351,459
281,163
- - -
20,725
- - 136,926
52,100
- - 17,390
107,364
- - 17,487
-
31,202 3,022 523,262
461,352
- - 22,500
- - 1,820,357
729,428 1,467,662 -
99,791 99,791 -
5,254
959,401
5,512,994
6,439,53
5,254
1,788,620
7,080,447
8.28�� 2 394
36,456
1,791,642
7,603,709
8,743,746
71
CITY OF LA QUINTA
Capital Projects Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year ended June 30, 1997
72
Capital
Financing
Infrastructure
Improvement
Authority
Revenues:
Developer fees
$1,552,373
100,874
-
Intergovernmental
-
655,377
-
Interest
253,164
-
-
Litigation settlement proceeds
-
-
_
Total revenues
1805,537
756,251
-
Expenditures:
Current:
Planning and development
-
-
-
Capital outlay
305,713
5,012,967
-
Debt service:
Interest
-
Total expenditures
305.713
5,012,967
-
Excess (deficiency) of revenues
over (under) expenditures
1,499,824
(4,256,716}
-
Other financing sources (uses):
Operating transfers in
64,975
4,256,716
738,234
Operating transfers out
(1,222,678)
-
-
Proceeds of advances from City
-
-
-
Total other financing sources
(uses)
(1,157,703)
4,256,716
738,234
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
342,121
-
738,234
Fund balances (deficit) at beginning
of year
4,206,218
-
-
Fund balances at end of year
JIL48 339
-
738,234
72
EXHIBIT C-2
Redevelopment
Redevelopment
1,171,440
Totals
A ency-PA No. 1
Agency -PA No. 2
1997
1996
33,410
-
99,728
1,752,975
1,735,233
-
860
656,237
283,010
-
151,987
405,151
365,531
29,991
-
29,991
9,152
29,991
252,575
2,844,354
2,392,926
812,121
359,319
1,171,440
1,366,745
-
-
5,318,680
2,753,477
33,410
-
33,410
9,600
845,531
359,319
6,523,530
4,129,822
81( 5 40)
106 744)
3 G79 176
1 7(. 36,896)
-
-
5,059,925
5,643,858
-
(2,201,338)
(3,424,016)
(1,326,388)
841,320
-
841,320
-
841,320
(2,201,338)
2,477,229
4,317,470
25,780
(2,308,082)
(1,201,947)
2,580,574
(20.526
4,096302
8,282,394 ,
5,701,820
5,254
1788,620
7,080,447
8,282,394
73
CITY OF LA QUINTA
Capital Projects Funds
Infrastructure Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Revenues:
Developer fees
Interest
Total revenues
Expenditures:
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 C-3
3 010 557 1,157.703 1,852,854
J678742)
(2,089,871) 342,121
4,206,218 4,206,218
2.116 347 4,548,339
74
2,431,992 891,967
- 3,314,251
2,431,992 4,206,218
Variance -
Favorable
1996
Budget
Actual
Unfavorable
Actual
$1,126,500
1,552,373
425,873
1,603,048
99,900
253,164
153,264
183,213
1,226,400
1,805,537,
579,137
1,786,261
305,714
305,713
1
215,554
305,714
305,713
1
215,554
920,686
1499,824
579,138
1,570,707
-
64,975
64,975
-
3 010 557)
(1,222,678)
787,8796[
78740)
3 010 557 1,157.703 1,852,854
J678742)
(2,089,871) 342,121
4,206,218 4,206,218
2.116 347 4,548,339
74
2,431,992 891,967
- 3,314,251
2,431,992 4,206,218
CITY OF LA QUINTA
Capital Projects Funds
Capital Improvement Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Revenues:
Developer fees
Intergovernmental
Total revenues
Expenditures:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
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-4
(11,604 M4) (41j6,716) 7,348,1782 2( 8_3 8 952)
11,599,836 4,256,716 (7,343,120) 2,297,280
11,599,836 4,256,716 (7,343,120) 2,297,280
75
(5,058) -
5 058) -
5,058 8,328
5,058
(8,328)
Variance -
Favorable
1996
Budget
Actual
(Unfavorable)
Actual
$ 653,314
100,874
(552,440)
132,185
1,915,988
655,377
1 260 611
116,786
2,569,302
756,251(1,813,051)
248,971
14,174,196
5,012 96„7
9,161,229
2,537,923
14,174,196
5,012,967
9,161,229
2,537,923
(11,604 M4) (41j6,716) 7,348,1782 2( 8_3 8 952)
11,599,836 4,256,716 (7,343,120) 2,297,280
11,599,836 4,256,716 (7,343,120) 2,297,280
75
(5,058) -
5 058) -
5,058 8,328
5,058
(8,328)
CITY OF LA QUINTA
Capital Project Funds
Financing Authority Capital Projects Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Revenues:
Developer fees
Interest
Total revenues
Expenditures:
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 C-5
Variance -
Favorable 1996
Bu� aet Actual Unfavorable Actual
76
738,234 738,234 -
738,234 738,234 -
- 738,234 738,234 -
738,234 738,234 -
EXHIBIT C-6
CITY OF LA QUINTA
Capital Projects Funds
Redevelopment Agency Project Area No. 1 Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Variance -
Favorable 1996
Budget Actual (Unfavorable) Actual
Revenues:
Litigation settlement proceeds $ 29,991 29,991 9,152
Total revenues - 29,991 29,991 9,152
Expenditures:
Current:
Planning and development
801,063
812,121
(11,058)
848,797
Debt service:
Interest
-
33,410
J31,410
9,600
Total expenditures
801,063
845,5314(
4,468)
858,397
Excess (deficiency) of revenues
over (under) expenditures80(
1,063)
(815,54
-(14.,477)
(849,245)
Other financing sources (uses):
Operating transfers in
394,950
-
(394,950)
710,735
Proceeds of advances from City
-
841,320
841.320
-
Total other financing sources (uses)
394,950
841,320
446,370
710,735
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
(406,113)
25,780
431,893
(138,510)
Fund balances (deficit) at beginning of year(20,526)-(29,52J6
-
117,984
Fund balances (deficit) at end of year
$(426,639
__5,254
431_,893(20,526)
77
CITY OF LA QUINTA
Capital Projects Funds
Redevelopment Agency Project Area No. 2 Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1997
Revenues:
Developer fees
Intergovernmental
Interest
Total revenues
Expenditures:
Current:
Planning and development
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 C-7
2.132.196 359,319 1,772,877 517,948
2,132.196 359,319 1,772,877 517;948
(2,075,946) 10( 6,744) 1 969,2021�61
69,0)
199,550 - (199,550) 2,635,843
{3,770,545) (2,201,338) 1,569,2072( 91,907)
(3,570,995) 2,201,338) 1,369,657 2,343,936
(5,646,941) (2,308,082)
4,096,702 4,096,702
$(1,550,239) 1,788,620
78
3,338,859 2,174,326
- 1,922,376
3,338,859 4,096,702
Variance -
Favorable
1996
13i� Actual
(Unfavorable)
Actual
$ - 99,728
99,728
-
- 860
860
166,224
56250 151,987
95,737
182,114
56,250 252,575
196,325
348,338
2.132.196 359,319 1,772,877 517,948
2,132.196 359,319 1,772,877 517;948
(2,075,946) 10( 6,744) 1 969,2021�61
69,0)
199,550 - (199,550) 2,635,843
{3,770,545) (2,201,338) 1,569,2072( 91,907)
(3,570,995) 2,201,338) 1,369,657 2,343,936
(5,646,941) (2,308,082)
4,096,702 4,096,702
$(1,550,239) 1,788,620
78
3,338,859 2,174,326
- 1,922,376
3,338,859 4,096,702
AGENCYFUNDS
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 eight 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.
La Quinta Public Safety Officer Fund - To account for contributions to be distributed to public
safety officers disabled or killed in the line of duty.
Deferred Com}aensation Fund - To account for deposits held by the City and moneys held on
behalf of employees under the City's deferred compensation plan.
_Debt Service 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.
Bond Reserve Assessment District No. 88-1, 89-2, 90-1, 91-1, 92-1 - To account for the bond
reserves for each bond issue on these assessment districts.
79
CITY OF LA QUINTA
Agency Funds
Combining Balance Sheet
June 30, 1997
80
Public
Assessment
Arts in
Safety
Deferred
District
Public Places
Officer
Compensation
No. 88-1
Assets
Cash and investments
$287,786
2,070
751,836
171,083
Interest receivable
-
_
_
_
Total assets
IZE.786
2,070
751,836
171,083
Liabilities
Liabilities:
Deposits payable
$287,786
2,070
-
-
Deferred compensation payable
-
-
751,836
-
Due to bondholders
M -
-
-
171,083
Total liabilities
$287,786
2,070
751,836
171,083
80
EXHIBIT D-1
Assessment
Assessment
Assessment
Assessment
District
District
District
District
Totals
No. 89-2
No. 90-1
No. 91-1
No. 92-1
1997 1996
222,561
239,467
423,629
336,292
2,434,724 2,384,171
-
-
-
-
- 48,558
222,561
239,467
423,629
336,292
2,434,724 2 432,729
- - 289,856 282,132
- - - - 751,836 546,683
222,561 239,467 423,629 336,292 1,393,032 1,603,914
222,-561 239,467 423,629 336,292 2,434724 2,432,729
81
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year ended June 30, 1997
ARTS IN PUBLIC PLACES
Assets
Cash and investments
Interest receivable
Total assets
Liabilities
Deposits payable
PUBLIC SAFETY OFFICER
Assets
Cash and investments
Liabilities
Deposits payable
DEFERRED COMPENSATION
Assets
Cash and investments
Liabilities
Deferred compensation payable
EXHIBIT D-2
Balance at Balance at
July 1, 1996 Additions Deletions June 30, 1997
$ 279,104 146,189 137,507 287,786
3,028 - 3,028 -
282 132 146.189 140,535 28� 87_ 786
282 132 276,794 271,140 287,786 ,
$ - 2,070 - 2,070
$ - = 2,070 2,070
$ 546,683, 219,750 14,597 751,836
546,683 219,750 14,597 751,836
82
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year ended June 30, 1997
ASSESSMENT DISTRICT NO. 88-1
Assets
Cash and investments
Interest receivable
Total assets
Liabilities
Due to bondholders
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
EXHIBIT D-2
(Continued)
Balance at Balance at
July 1, 1996 Additions Deletions Tune 30, 1997
$ 270,533 214,494 313,944 171,083
5,460 - 5,460 -
$ 275,993 214,4.94 319,404 171,083
$ 275,993 214,494 319,404 171,083
$ 262,071 293,504 333,014 222,561
8.169 - 8,169 7
$2� 70,240 293,504 341,183 222.561
L170.240 432,.195L 79,874 222.561
$ 271,377 323,255 355,165 239,467
8.145 - 8,145 -
279,522 323,255 363,310 _ 239,467
279 522 469,82250� 99.877 239,467
83
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
EXHIBIT D-2
(Continued)
Year ended June 30, 1997
Balance at Balance at
July 1, 1996 Additions Deletions June 30, 1997
ASSESSMENT DISTRICT NO. 91-1
Assets
Cash and investments
Due from other governments
Total assets
Liabilities
Due to bondholders
ASSESSMENT DISTRICT NO. 92-1
Assets
Cash and investments
Interest receivable
Total assets
T 7_'1.1•_
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
$ 452,523 564,278 593,172 423,629
14,708 - 14,708 -
467 231 564,278 607.880 423,629
$ 467,231 807,723 851,325 423,629
$ 301,880 435,905 401,493 336,292
9,048 - 9.048 -
310 928 435,905 410,541 336.292
310 928 574,541 549,177 336,292
$2,384,171 2,199,445 2,148,892 2,434,724
48,558 - 48,558 -
2 432,729 2,199,445 2,197,450 2,434,724
$ 282,131
278,864
271,139
289,856
546,683
219,750
14,597
751,836
1,603,915
2,498,774
2,709,657
1.393,032
2 432 729
2997,388
2,995,393
2,434,724
84
GENERAL FIXED ASSETS ACCOUNT GROUP
85
CITY OF LA QUINTA
Comparative Schedule of General Fixed Assets - By Source
June 30, 1997
General fixed assets:
EXHIBIT E-1
1997 1996
Land
$13,280,910
13,368,910
Buildings
11,795,694
12,404,019
Leasehold improvements
201,070
201,070
Furniture and fixtures
948,514
1,058,572
Vehicles
224,357
475,382
Total general fixed assets
$26,450,545
27,507,953
Investments in general fixed assets from:
General Fund
$15,011,800
15,981,208
Redevelopment Agency
11,438,745
11,526,745
$26,450,545
27,507,953
86
EXHIBIT E-2
CITY OF LA QUINTA
Schedule of General Fixed Assets - By Function and Activity
June 30, 1997
87
Furniture
Leasehold
and
Function and Activity Land
Buildings Improvements
Fixtures
Vehicles
Total
General Government $13,280,910
11,795,694 -
-
-
25,076,604
Legislative -
- -
17,057
-
17,057
City Manager -
- -
139,407
-
139,407
Finance _
- -
114,692
-
114,692
City Clerk -
- -
190,262
-
190,262
Community Services -
- 201,070
91,115
-
292,185
Building and Safety -
- -
114,691
165,410
280,101
Community Development -
- -
97,258
-
97,258
Public Works -
- -
184,032
58,947
242,979
Total $13,280,910
11 7___, 95,694 201,070
948,51.4
224,357
26,450,54
87
EXHIBIT E-3
CITY OF LA QUINTA
Schedule of Changes in General Fixed Assets - By Function and Activity
June 30, 1997
88
Transfer to
Beginning
Proprietary
Ending
Function and Activity
Balance
Additions
Retirements
Funds
Balance
General Government
$25,772,929
-
(88,000)
(613,890)
25,071,039
Legislative
11,934
5,123
-
-
17,057
City Manager
140,413
-
(1,006)
-
139,407
Finance
187,992
10,841
(84,141)
-
114,692
City Clerk
184,849
6,321
(908)
-
190,262
Community Services
282,639
10,511
-
-
293,150
Building and Safety
350,407
25,264
(6,500)
(84,470)
284,701
Community Development
97,258
-
-
-
97,258
Public Works
479,532
94,254
(2,608)3{
.28,199)
242,979
Totals
527,507,953
152,314
(183,163}1
02(, 6,559)
26,450,545
88
STATISTICAL SECTION
89
CITY OF LA QUINTA
General Fund Expenditures by Function
Last Ten Fiscal Years
TABLE 1
Fiscal Year
Ending
General
Public
Public
Community
Planning &
Capital
June 30
Government
Safety
Works
Service
Development
Projects
Total
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
1997
$2,376,935
3,442,056
889,694
469,110
455,563
170,000
$7,803,358
(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
Includes: General Fund
90
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
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
1997
$5,942,698
793,689
1,072,803
976,897
40,593
941,327
22,712
$9,790,719
(1) Previously included in Licenses and Permits
(2) 1995 was the fust year Litigation Settlement Proceeds was identified as a revenue source
Source: City of La Quinta Audited Financial Statements
Includes: General Fund
91
CITY OF LA QUINTA TABLE 3
Property Tax Levies and Collections
Last Seven Fiscal Years
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
92
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%
1997
$824,073
760,350
92.3%
0
92.3%
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
92
CITY OF LA QUINTA
Schedule of Net Taxable Value
Last Seven Fiscal Years
Fiscal Year
Assessed
Less
Less
Net
Ending
Secured
Unsecured
Property
Property
Homeowner's
Taxable
June 30
_ _PropertyProperty
_
Value
Exemptions
Exemptions
Value
1991
$1,278,307,230
7,156,844
1,285,464,074
3,474,595
(1)
1,281,989,479
1992
1,594,767,374
6,396,816
1,601,164,190
3,605,829
(1)
1,597,558,361
1993
1,773,323,102
6,943,559
1,780,266,661
3,814,434
(1)
1,776,452,227
1994
1,872,768,156
8,119,527
1,880,887,683
3,946,378
18,901,202
1,858,040,103
1995
1,927,834,908
22,822,285
1,950,657,193
4,357,954
20,518,400
1,925,780,839
1996
2,043,276,054
23,801,872
2,067,077,926
6,936,774
22,399,068
2,037,742,048
1997
$2,164,204,951
22,511,720
2,186,716,671
6,919,376
22,407,418
2,157,389,877
Note: Detail prior to fiscal year 1991 not available
(1) Homeowner's exemption not available
Source: County of Riverside
93
General
Desert Sands Unified
College of the Desert
Coachella Valley Water District
Total Tax Rate
Source: County of Riverside
CITY OF LA QUINTA
Property Tax Rates - Direct and Overlapping Governments
Last Five Fiscal Years (per $100 of Assessed Value)
1996/97
1995/96
1994/95
1993/94
1.00000
1.00000
1.00000
1.00000
0.09750
0.09750
0.09750
0.09750
0.00000
0.00000
0.00000
0.00000
0.02080
0.02080
0.02080
0.02080
1.11830
1.11830
1.11830
1.11830
94
1992/93
1.00000
0.09750
0.00096
0.02690
1.12536
TABLE 5
CITY OF LA QUINTA
Special Assessment Billings and Collections
Last Seven 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
1997
$791,012
757,256
95.7
(1) Includes Prepayments and Foreclosures
Source: Muni Financial Services
95
Source:
CITY OF LA QUINTA
Schedule of Direct and Overlapping Bonded Debt
June 30, 1997
Direct and Overlappigg Bonded Debt
Riverside County Board of Education Certificates of Participation
Riverside County Building Authorities
Desert Community College District Certificates of Participation
Desert Sands Unified School District Authority
Coachella Valley County Water District, I.D. #55
Coachella Valley County Water District, I.D. #58
Coachella Valley County Water District, I.D. #71 Storm Water
Unit Certificates of Participation
City of La Quinta
City of La Quinta 1915 Act Bonds
Total Direct and Overlapping Bonded Debt
TABLE_ 7
Percent June 30, 1997
Applicable Bonded Debt
0.996
$219,930
0.996
4,737,424
3.809
133,696
9.043
12,472,141
72.943
9,176,229
1.975
198,488
6.297 1,014,132
100.000 0 (1)
100.000 5,005,000
$32,957.040 (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.
96
Assessed Valuation
Debt Limit - 15 % of Assessed Valuation
Amount of Debt Applicable to Debt Limit
Legal Debt Margin
Notes:
Source:
CITY OF LA QUINTA
Computation of Legal Debt Margin
June 30, 1997
$2.186.716.671
328,007,501
-0-
$328,007,501
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.
City of La Quinta
97
TABLE 8
CITY OF LA QUINTA
Revenue Bond Coverage
Local Agency Revenue Bonds (City Hall Project)
Last Six 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
1997
$607,950
170,000
437,950
607,950
1.00
Note:
Revenue available consists of lease payments made by the City of La Quints to the La Quints Financing
Authority.
Source:
City of La Quinta
98
CITY OF LA QUINTA TABLE 10
Demographic Statistics
Last Ten Fiscal Years
99
Total
City
Fiscal Year
Population
Riverside
Population
Ending
Square
Percent
County
Percent
June 30
Miles _(1) _
Papulation (2)
Change
Population (2)
Of County
1988
23.2
9,274
13.3%
983,800
0.9%
1989
23.2
10,267
10.7%
1,057,200
1.0%
1990
23.3
10,587
3.1%
1,144,400
0.9%
1991
23.8
13,070
23.5%
1,225,800
1.1%
1992
28.0
14,727
12.7%
1,281,000
1.1%
1993
28.2
15,589
5.9%
1,323,500
1.2%
1994
28.2
16,680
7.0%
1,357,400
1.2%
1995
31.2
17,591
5.5%
1,393,500
1.3%
1996
31.2
18,050
2.6%
1,381,879
1.3%
1997
31.2
18,931
4.9%
1,379,956
1.4%
Source:
(1) City of La Quinta
(2) State of California Department of
Finance
99
CITY OF LA QUINTA
Property Value and Construction Activity
Last Seven Fiscal Years
TABLE 11
Fiscal Year
Commercial
Residential
Ending
Property
Construction
Construction
June 30
Value (1)
Units Value
Units
Value
1991
$1,278,307,230
3
7,299,000
304
38,320,527
1992
1,594,767,374
12
7,334,871
320
35,744,443
1993
1,773,323,102
7
2,441,392
324
39,145,539
1994
1,872,768,156
13
6,081,796
531
79,318,969
1995
1,927,834,908
4
1,100,119
238
29,163,494
1996
2,043,276,054
8
1,018,940
336
53,973,239
1997
$2,164,204,951
11
1,876,747
322
36,971,047
NOTE: Detail prior to fiscal year 1991 not available
(1) From Schedule of Net Taxable Value
Source: City of La Quints
100
Source:
Taxp_aver
La Quinta Hotel Corporation
KSL PGA West Corporation
Sunrise Desert Partners
KSL Landmark Corporation
KSL Land Corporation
KSL La Quinta Corporation
TD Desert Development
La Quinta Golf Properties, Inc.
M & H Realty Partnership
Washington Adams Partnership
City of La Quinta
CITY OF LA QUINTA
Principal Taxpayers
June 30, 1997
101
Type of Activity
Hotel
Residences
Condominum
Vacant Land
Residential Land
Golf Course
Residential Land
Golf Course
Shopping Centers
Commercial
TABLE 12_
Source:
CITY OF LA QUINTA TABLE 13
Major Employers
June 30, 1997
Employer
Employees
Activity
La Quints 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 Quints
74
Municipal Government
Simon Motors
65
Auto Dealer
Cliff House
65
Restaurant
Red Robin
50
Restaurant
City of La Quinta
102
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 1997
TABLE 14
Company Name
Policy Number
Coverage
Limits
Tenn
Premium
Hartford
PEBAO7068
Employee Dishonesty,
$1,000,000
12/03/96 - 97
$2,500
Forgery, Computer Fraud
Lloyds of London
F95BDCE006
Fire Truck Physical Damage
$185,000
07/01/97 - 98
$2,390
Van Pelt/Spartan
Reliance Insurance
NZB1500917
All Risk Property Insurance
$21,943,000
07/01/97 - 98
$17,350
Company
Including Auto Physical Damage
(Excluding Quake & Flood)
Reliance Insurance
IMF 016349
Earthquake & Flood
$5,000,000
02/07/97 - 98
$25,941
Company
Real & Personal Property
Including Contigent Tax Interruption
California
Certificate #5
Comprehensive General
$0 Deductible Retention
07/01/97 - 98
$60,630
Joint Powers
Liability
$50 Million
Insurace Authority
California Certificate Worker's Compensation $250,000 07/01/97 - 98 $37,637
Joint Powers #5009-056
Insurance Authority
American National H\dP9880468 Earthquake & Flood $2,500,000 02/07/97 - 98 $5,000
Real & Personal Property
Including Contigent Tax Interruption
Source: City of La Quinta
103
CITY OF LA QUINTA
Miscellaneous Statistical Data
June 30, 1997
Date of Incorporation .......................................
May 2, 1982
Type of City .......................................
Charter City
Form of Government ..................... I .................
Council / Manager
CityEmployees .......................................
74
City Land Area (square miles) ....................................
31.2
Population .......................................
18,931
Number of Parks .......................................
5
Total Acreage .......................................
26
Miles of Streets ............ I ..........................
144.0
Miles of Bike Paths ....... I ..............................
3.0
Number of Major Intersections ..................................
29
Number of Traffic Signals and Safety Lighting .......................
29
Number of Traffic Signs .......................................
2,530
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 ..........................
6,845
Number of Single Family Units - Attached ..........................
2,260
Number of Multiple Family Units ................................
571
Number of Mobile Home .......................................
247
104
TABLE 15