1997-1998 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)Ar Aff
Caurornia
Comprehensive Annual Financial Report
for the
Year Ended June 30, 1998
CITY OF LA QUINTA
La Quinta, California
Comprehensive Annual Financial Report
Year ended June 30, 1998
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, 1998
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal
List of Principal Officials
Organizational Chart
Certificate of Award for Outstanding Financial Reporting (CSMFO) xxi
Certificate of Achievement for Excellence in Financial Reporting (GFOA) xxii
FINANCIAL SECTION:
Independent Auditors' Report 1
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund. Types
S
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual - All Governmental Fund Types 6
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types g
Combined Statement of Cash Flows - All Proprietary Fund Types 9
Notes to the Financial Statements 10
Supplemental Data:
General Fund:
Statement of Expenditures - Budget and Actual 42
Special Revenue Funds:
Combining Balance Sheet 46
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 48
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1998
TABLE OF CONTENTS, (CONTINUED)
State Gas Tax Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Community Service Projects Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Federal Assistance Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
ISTEA Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Lighting and Landscape Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
State Law Enforcement Block Grant (SLEBG):
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Quimby Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Village Parking Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Page
50
51
52
53
54
M
56
57
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1998
TABLE OF CONTENTS „(CONTINUED)
South Coast Air Quality Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Local Law Enforcement Block Grant (LLEBG):
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Urban Forestry Grant Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Low/Moderate Income Housing Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Low/Moderate Income Housing Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Low/Moderate Bond - Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Low/Moderate Bond - Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Debt Service Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Paye
58
59
3117
Cil
62
63
64
CSol
67
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1998
TABLE OF CONTENTS, (CONTINUED)
Financing Authority Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Redevelopment Agency Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Redevelopment Agency Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Capital Projects Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Infrastructure Fund:
Statement of Revenues, Expenditures and Changes
Capital Improvement Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Financing Authority Capital Projects Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Redevelopment Agency Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Page
Cf:
70
72
74
76
77
78
79
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1998
TABLE OF CONTENTS CONTINUED
Page
Redevelopment Agency Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 80
Agency Funds:
Combining Balance Sheet - All Agency Funds 82
Combining Statement of Changes in Assets
and Liabilities - All Agency Funds 84
General Fixed Assets Account Group:
Comparative Schedule of General Fixed Assets - By Source 88
Schedule of General Fixed Assets - By Function and Activity 89
Schedule of Changes in General Fixed Assets -
by Function and Activity 90
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1998
TABLE OF CONTENTS, (CONTINUED)
Table No.
Page
STATISTICAL SECTION:
General Fund Expenditures by Function
1
92
General Fund Revenue by Source
2
93
Property Tax Levies and Collections
3
94
Schedule of Net Taxable Value
4
95
Property Tax Rates - Direct and Overlapping Governments
5
96
Special Assessment Billings and Collections
6
97
Schedule of Direct and Overlapping Bonded Debt
7
98
Computation of Legal Debt Margin
8
99
Revenue Bond Coverage
9
100
Demographic Statistics
10
101
Property Value, Construction Activity, and Bank Deposits
11
102
Principal Taxpayers
12
103
Major Employers
13
104
Schedule of Insurance in Force
14
105
Miscellaneous Statistical Data
15
106
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December 1, 1998
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 1997-98 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANNSM TTAL
We are pleased to present the 1998 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, 1998. 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 �`-`
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 have financial accountability 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.
lBak{run
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 10 -year demographic data is as follows:
Population as of December 1997 was 20,444 an increase of 120% from 1987;
• Retail Sales of $115 million a 344% increase from 1987;
• Taxable Sales of $160 million a 275% increase from 1987;
• Assessed Valuation over $2 billion a 210% increase from 1987; and,
• Hotel Room sales over $28.8 million a 210% increase from 1987.
The City area includes the beautiful La Quinta Hotel, world class golf resorts, numerous single family and multi-
dwelling units and light commercial industries. The City has a beautiful 10,000 sq ft Senior Center for City
residents. The Desert Sands Unified School District has recently opened the Adams Elementary School.
The City has been experiencing rapid growth in population making it one of the fastest growing Cities in
California. For the second quarter ending June 30, 1998, of all the cities in Riverside County, the City of La
Quinta posted the highest single gain in sales tax revenue, with a 75% increase over the same quarter the previous
year. With this growth comes a demand on local government to meet the needs of its citizens. The total number
of full time authorized positions for 1997-98 is 70. In addition to the 20,444 permanent residents approximately
10,600 seasonal residents spend three to six months in the City.
Honorable Mayor, City Council,
and City Manager
Servicri Provided by the i
City services can be divided into those services provided directly by City staff and those services contracted out
to other government agencies and organizations.
Direct service$ provided by City staff in the following areas include:
Gciieral Government
- Legislative
- City Manager
- Economic Development
Finance
- Fiscal Services
- Central Services
Ruiliing qnd Safety
- Administration
- Code Compliance
- Animal Control
- Building
- Emergency Services
- Fire
- Civic Center Building
Public Works
- Administration
- Development/Traffic
- Street & Landscape Maintenance
- Capital Projects
Ciler
- City Clerk
Gam - unit ervi e
- Administration
- Recreation
- Senior Center
{community DeyAppment
- Administration
- Planning
- South Coast Air Quality
- Redevelopment
n racted 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.
ff
Honorable Mayor, City Council,
and City Manager
Significant Events ant] Accom) ishinents
During 1997-98 the City experienced many significant events and accomplishments that may not be readily
evident from a review of the financial statements. Some of the more important of these items are:
Real Estate
Single family construction accounted for $76.6 million in building permits while commercial construction
accounted for $14.8 million.
A Home Depot hardware outlet was constructed, taking up almost 130,000 square feet of the retail center at
the intersection of Highway 111 and Jefferson Street. An Eagle Hardware store was also constructed during
1997-98, adding 212,000 square feet of commercial space at the corner of Highway 111 and Simon Drive. A
4,700 square foot International House of Pancakes has been approved for the Home Depot retail center.
The development of numerous residential communities has increased the assessed valuation in the City. As
mentioned earlier, the City's assessed valuation has increased 210% from 1987 to over $2 billion, with an increase
of $138 million during the latest year.
Housin
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 $117,400 which is lower than Riverside, San Diego,
Los Angeles Counties and the State of California.
There were 435 housing units built during 1997 which brings to 10,392 the number of total units within the City.
The 10,392 units consist of 9,448 single family residences, 697 multi family residences, and 247 mobile homes.
Tourism
La Quinta is home to several of the world's highest rated golf courses. During FY 1997-98, major golf
tournaments hosted in La Quinta included the prestigious Bob Hope Chrysler Classic, the Skins Game, and the
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.
iv
Honorable Mayor, City Council,
and City Manager
The La Quinta Hotel, the second largest destination resort in the Coachella Valley, recorded dramatic growth
in hotel revenues during 1997.
The City increased funding for the Palm Springs Desert Resort Convention Bureau for tourism promotion and
provided funding for the Airline Services Council to bring a low cost carrier to the Coachella Valley.
Capital Improvements
The City completed over $7,500,000 in capital improvements during 1997-98. Among the completed projects
were the Dune Palm White Water Channel Crossing, Avenue 48 Improvements, City -Wide Landscaping
Improvements (including the Eisenhower median), and the PM 10 Improvements behind City Hall.
Design work was completed on projects under the five-year plan to retrofit various ADA ramps and sidewalk
improvements. Design was also completed for the Washington Street and Miles Avenue Widening projects.
A five-year Capital Improvement Program (CIP) was completed in-house. Next year, the City's five-year (CIP)
will be increased by over $12 million, bringing the total 1998-99 fiscal year CIP budget to $17 million. This
major investment of CIP funds will provide the City with the infrastructure needed to sustain the current and
planned future growth anticipated in the City.
Community FaGilitie5
The City completed the Fritz Burns and Adams Street Parks, Sports Complex Lighting, Traffic Improvements
at various intersections, Bear Creek Channel Bike Path, Landscaping, and Highway I I I/Washington Street
widening while maintaining 20 acres of medians, 15 acres of parks and 105 miles of streets.
City Operations
The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 1997-
98:
Implementation of an Economic Development Strategy Plan;
Received several grant awards for public safety, tire recycling and bicycle lanes.
Received awards in excellence for financial and budget reports;
Started the General Plan Updates;
Completed and adopted Prop 218 compliance analysis with the City Council;
Completed first phase of scanning City maps.
VA
Honorable Mayor, City Council,
and City Manager
Future developments include, continued commercial development along the Highway 111 corridor,
redevelopment financed property development on Avenue 48 and completion of residential projects in the
northern part of the City.
Financial .Information
Management of the City of La Quinta is responsible for establishing and maintaining a framework of internal
controls 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 framework of internal controls is designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that:
(1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and
benefits requires estimates and judgments by management.
Single Audit - As a recipient of federal, state and county financial assistance, the City also is responsible for
ensuring that an adequate framework of internal controls is in place to ensure compliance with applicable laws
and regulations related to those programs. The framework of internal controls 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 framework of internal
controls, 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, 1998 provided no instances of material weaknesses in the framework of internal
controls or significant violations of applicable laws and regulations.
Accounting Controls - The City of La Quinta's accounting system is designed upon the following principles:
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 Governmental Accounting Standards Board).
The City's accounting system operates on a modified accrual basis of accounting for all governmental and agency
type funds. Governmental 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. Expenditures, other than interest or long term debt, are recorded when liabilities
V1
Honorable Mayor, City Council,
and City Manager
are incurred.
The City maintains one Internal Service Fund and no Enterprise Funds. These types of funds use the accrual
basis of accounting. Revenues are recorded when earned and expenses when incurred.
In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting
system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain the
accuracy of financial record keeping. These internal controls must be established consistent with sound
management practices based upon the 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.
BudGetary Controls
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 on-line budgetary data from the financial information system available throughout the City-wide computer
network.
The City Council is also given an Executive level Summary of Revenues and Expenditures on a monthly basis.
Bann Llnllt - A 7 r{] riat1 ns SuJect to the Lin1It
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 and growth in State per capita income, the Gann spending limit was increased to $25.3 million
for fiscal year 1997-98. Appropriations of "proceeds of taxes" was $8.6 million for a margin of $16.7 million.
Vii
Honorable Mayor, City Council,
and City Manager
Revenue and Expergses_from All Fund Types
The following schedules present a summary of the general fund, special revenue funds, debt service funds, capital
project funds, Internal Service fund revenues and expenditures for 1997-98 and the amount and percentage of
increases and decreases in relation to prior year revenues.
Fund Type
General Fund -
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Internal Services Fund
Total
Fund Type
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Internal Service Fund
Total
Revenue from All Fund Vines
97-98 over %
1997-98 1996-97, (under) 96-97 Change
$11,808,235
$9,790,719
$2,017,516
20.6%
3,951,583
6,543,379
8,905,876
-2,362,497
-26.5%
14,009,893
13,860,628
12,641,814
1,218,814
9.6%
1,717,235
4,670,155
2,844,354
1,825,801
64.2%
23.0%
199,731
135,913
63,818
47.0%
$37,082.128
$34,318.676
$2,763,452
8.0%
Expenditures All Fuad Types
97-98 over %
1997-98 1996-97 (under) 96-97 Change
$ 8,327,740
$7,803,358
524,382
6.7%
3,951,583
3,377,437
574,146
17.0%
16,458,977
14,009,893
2,449,084
17.5%
8,240,765
6,523,530
1,717,235
26.3%
160,051
130,151
29,900
23.0%
$37,139,116
$31,844,369
5,294,747
16.6%
For all fund types, the increased revenue is reflective of retail sales growth and increases in permit fees in the
General Fund, increased Capital Project Fund activity, and increased operational revenue for the Equipment
Replacement Internal Service Fund. Expenditures in all areas of the General Fund increased by a combined
amount of 16.6%, with Capital Project fund expenditures increasing by the highest margin of 26.3%.
Honorable Mayor, City Council,
and City Manager
General Fund
The City's General Fund is used to record all revenue and expenditures not specifically restricted by
law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy
tax, licenses and permits, and interest. Categories of expenditures include police services, public
works, planning, parks and recreation, and administrative functions.
The following two tables summarize General Fund revenues and expenditures for 1997-98 and 1996-
97:
r,n ,nl Fund - Revenue
Source
Taxes
Licenses and permits
Charges for services
Intergovernmental
Interest
Litigated Settlements
Miscellaneous
Total
1997-98 1996-97
$ 6,764,355
1,144,564
1,228,269
1,110,553
1,164,145
281,382
114 969
$11,808,237
ix
$5,942,698
793,689
976,897
1,072, 803
941,327
40,593
22,712
$9,790,719
97-98 over
(under) 96-97
$ 821,657
350,875
251,372
37,750
222,818
240,789
92,257
$2,017,518
Change
13.8%
44.2%
25.7%
3.5%
23.7%
593.2%
406.2%
9,0 6%
Honorable Mayor, City Council,
and City Manager
The total 1997-98 General Fund revenue increase of 20.6% reflects a steady increase in tourism and
population growth.
The 44.2% increase in License and Perniit revenue was greater than anticipated for 1997-98. Although
fiscal year 1996-97 showed signs of slowing construction activity, the strong rebound in 1997-98 has
boosted optimism among both builders and home buyers in La Quinta. The City expects an upward shift
in equilibrium market prices for both new and resale residential units. The Charges for Services increase
of 25.7% reflects a change in engineering fees which were handled as a deposit trust system in 1996-97
and prior years and in 1997-98 were changed to a straight revenue fee system. The 593.2% increase in
Litigated Settlements is primarily due to payments received from an investments -related lawsuit.
The Intergovernmental increase of 3.5% reflects a relatively flat revenue trend for this income source for
1997-98. Interest revenues increased by 23.7% primarily due to earnings on loans to the La Quinta
Redevelopment Agency, and to a lesser degree on more aggressive investment of idle cash. The large
increase of 406.2% in Miscellaneous revenue is primarily due to the one time dividends received from the
City's proportionate share of Excess Disability and Worker's Compensation deposits with the Coachella
Valley Joint Powers Insurance Authority. The City is no longer a member of this insurance authority and
is now a member of the California Joint Powers Insurance Authority.
Expenditure ape
General Government
Public Safety
Community Services
Planning & Development
Public Works
Total
General Fund Expenditures
1997-98 1996-97
$2,229,389 $2,376,935
4,099,523
494,402
345,054
1,159,372
3,442,056
469,110
455,563
993,518
97-98 over
%
(under) 96-97
Change
-147,546
-6.2%
657,467
19.1%
25,292
5.4%
-110,509
-24.3%
165,854
16.7%
$8,327,740 $7,737,182 590,558 7.6%
Honorable Mayor, City Council,
and City Manager
The 1997-98 General Fund net expenditure increase of 7.6% reflects the net changes in the five functional
areas of the General Fund. Most noteworthy is the 19.1% increase in public safety expenditures.
The General Governmot decrease of 6.2% was due to across-the-board expenditure decreases in all
General Government departments, with the exception of economic development activities. The 5.4%
increase in Cmmunity Services expenditures is a result of the Council's on-going commitment to offer
more services to the public. Public Works expenditures increased by 16.7% largely as the result of
increases in Traffic Maintenance and Lighting and Landscape Maintenance. In fiscal year 1996-97, the
Public Works expenditures were shown as $889,694. This figure is being restated above as $993,518
to reflect the actual amount.
Special Revenue Funds
The City's Special Revenue Funds, which account for the collection and use of special or restricted
revenues, received $6.5 million in total revenue in 1997-98. This as a decrease of 26.5%. The Special
Revenue Fund expenditures were $3.9 million, an increase of 17%
The following two tables summarize Special Revenue Funds revenues and expenditures for 1997-98 and
1996-97:
1 Revent e Funds - Revenue
xi
97-98 over
%
Source
1997-98
1996-97
(under) 96-97
Change
Taxes
$3,253,847
$2,971,135
$ 282,712
9.5%
Developer fees
178,713
2,137,288
-1,958,575
-91.6%
Intergovernmental
1,200,519
707,627
492,892
69.7%
Interest
728,523
1,325,902
-597,379
-45.1%
Special assessments
809,041
994,110
-185,069
-18.6%
Rental Income
395,414
715,203
-319,789
-44.7%
Miscellaneous
0
54,611
-54,611
n/a
Land Sale
-22,678
0
-22,678
n/a
Total
$6,543,379
$8,905,876
-$2,362,497
-26.5%
xi
Honorable Mayor, City Council,
and City Manager
lntergovermnental revenue increase of 69.7% is a result of federal grants for transportation and additional
law enforcement in the City. The large decrease of 91.6% in Developer Fees reflects the one-time
developer contribution of $2,112,000 in the Redevelopment Agency received in fiscal year 1996-97. The
45.1% decrease in Interest revenue reflects earnings on lower cash balances. The Rental Income decrease
of 44.7% is reflective of rental income recorded from the sale of rental property received during the 1997-
98 fiscal year.
Expenditure Type
Public Safety
Planning & Development
Public Works
Total
Special Revenue Fun Expenditures
1997-98
$ 33,388
2,729,873
1996-97
$ 41,219
2,128,288
97-98 over
(under) 96-97
-$ 7,831
601,585
1,188,322 1,207,930 -19,608
$3,951,583 $3,377,437 $574,146
Change
-19.0%
28.3%
-1.6%
17.0%
The $33,388 of Public Safety expenditures in 1997-98 reflects the continuing grant funding for additional
law enforcement personnel from the State Law Enforcement Block Grant (COPS) program. The
Planning & Development increase of 28.3% is primarily a result of expanding the silent second home
rehabilitation program in the Redevelopment Agency. The Capital Outlays remained relatively unchanged
when compared to fiscal year 1996-97.
xii
Honorable Mayor, City Council,
and City Manager
Debt Service Funds
The City's Debt Service Funds are used to record the payment of interest and principal on the current
portion of outstanding debt.
The following two tables summarize Debt Service Funds revenues and expenditures for 1997-98 and
1996-97:
Debt Service Funds -Revenue
Source 1997-98
Taxes $13,015,387
Intergovernmental 0
Interest 110,618
Rental Income 734,623
Total $13,860,628
The Taxes revenues increase of 9.5% reflects increased building activities and lower than expected
property value reassessment appeals. The Interest revenue's large decrease of 34.2% is a result of lower
cash balances in the debt service funds. The Financing Authority's debt service fund receives revenue
from the General Fund in the form of rental income to pay for lease payments. The lease payments in
1997-98 increased, resulting in a corresponding increase in Rental Income of 25.7%.
Debt Service Funds- Expenditures
97-98 over
%
1996-97
(under) 96-97
Change
(under) 96-97
Change
Planning & Development $ 209,588
$11,884,541
$ 1,130,846
9.5%
4,614
-4,614
n/a
168,191
-57,573
-34.2%
584,468
150,155
25.7%
$12,641,814
$1,218,814
9.6%
The Taxes revenues increase of 9.5% reflects increased building activities and lower than expected
property value reassessment appeals. The Interest revenue's large decrease of 34.2% is a result of lower
cash balances in the debt service funds. The Financing Authority's debt service fund receives revenue
from the General Fund in the form of rental income to pay for lease payments. The lease payments in
1997-98 increased, resulting in a corresponding increase in Rental Income of 25.7%.
Debt Service Funds- Expenditures
The increase of 38.1% in Planning & Development is a result of higher contract administrative service
fees in the Redevelopment Agency debt service fund. The Debt Service expenditure increase of 17.3%
reflects higher scheduled tax increment pass through payments in the Redevelopment Agency.
97-98 over
%
Expenditure Type 1997-98
1996-97
(under) 96-97
Change
Planning & Development $ 209,588
$151,741
$ 57,847
38.1%
Debt Service 16,249,389
13,858,152
2,391,237
17.3%
Total $16,458,977
$14,009,893
$2,449,084
17.5%
The increase of 38.1% in Planning & Development is a result of higher contract administrative service
fees in the Redevelopment Agency debt service fund. The Debt Service expenditure increase of 17.3%
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 1997-98 and
1996-97:
Capital Project Funds - Revenue
Source
1997-9R
1996-97
97-98 over %
under) 96-97 Change
Developer fees -
$2,961,792
$1,752,975
$1,208,817
69.0%
Intergovernmental
1,167,522
656,237
511,285
77.9%
Interest
540,637
405,151
135,486
33.4%
Litigated Settlements
204
29,991
-29,787
-99.3%
Total
$4,670,155
$2,844,354
$1,825,801
64,2%
Developer fees increased 69.0% due to increased building activities resulting from infrastructure fees and
specific projects funded by developer fees. Intergovernmental revenue's large increase of 77.9% is a
result of state and local partnership grants for transportation -related capital improvements. No significant
Litigated Settlements revenue was received in 1997-98 in the Capital Projects funds.
Expenditure Type
Planning & Development
Capital Outlay
Debt Service
Total
a i 1 r `ect Funds - Expenditures
1997-98 1996-97
$ 651,832
7,588,933
0
$8,240,765
$1,171,440
5,318,680
33,410
$6,523,530
97-98 over
%
(under) 96-97
Change
-$519,608
-44.4%
2,270,253
42.7%
-33,410
n/a
$1,717,235
26.3%
The 44.4% decrease in Planning & Deylooment expenditures reflects a reduction in contract consultant fees in
the Redevelopment Agency - Capital Improvement Funds. The Capital Outlay increase of 42.7% is a result of
increased scheduled Capital Improvement Projects in 1997-98.
xiv
Honorable Mayor, City Council,
and City Manager
internal Servicg Fund
The City's Internal Service Fund (Equipment Replacement Fund) is used to report the operational cost of
maintaining and replacing City vehicles and equipment. Cost allocation charges are recorded as expenditures in
General Fund departmental budgets accounts and as revenues in the Equipment Replacement Fund. Charges
are based on a schedule that recovers maintenance and depreciation costs. The fund was established in 1996-97
with seed money from the General Fund and it had no operating activity that year. 1997-98 is the first full year
of operation for this fund. New vehicles and equipment are purchased in the respective General Fund department
and then transferred out as contributed capital to the Equipment Replacement Fund at the end of the year.
Source
Operating Revenue
Charges for Services
Operating Expense:
Cost of Services
Administration
Depreciation
Total Operating Expense
Operating Income (Loss)
Non -Operating Revenues
(Expenses)
Interest
Total Non -Operating
Revenue (Expenses)
Net Income (Loss Before
Transfers
Operating Transfers:
Operating Transfers In
Total Operating Transfers
Net Income (Loss)
Retained Earnings at
Beginning of Year
Retained Earnings at End of
Year
Equipment R-eplacement Fund
1007-02
1996-97
97-98 over %
(under) 96-97 Change
$199,731
$135,913
$
63,818
47.0%
0.4%
-$225,000
n/a
$ 60,585
$ 92,114
-$
31,529
-34.2%
4,626
3,845
_ $ 256,144
781
20.3%
94,840
34,192
31,144
60,648
177.4%
$160,051
$130,151
$
29,900
23.0%
$ 39,680
$ 5,762
$
33,918
588.7%
$ 25,491
$
25,382
$
109
0.4%
-$225,000
n/a
$ 65,171
$ 25,491
$
25,382
$
109
0.4%
_ $ 256,144
101.4%
$65,171
$
31,144
$
34,027
109.3%
$ 0
$225,000
-$225,000
n/a
$ 0
$225,000
-$225,000
n/a
$ 65,171
$256,144
-$190,973
-74.6%
$508,730
$252,586
_ $ 256,144
101.4%
$573,901
$508,730
$_ 65,171
12.8%
xv
Honorable Mayor, City Council,
and City Manager
Risk Management
The California Joint Powers Insurance Authority (CJPIA) was formed in 1997 under a joint exercise of powers
agreement between local governments 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 CJPIA in order to achieve long-term premium stability. Each member city must remain
in the pool for three years. Each year, the self-insured pool undergoes a retrospective deposit computation based
on current incurred loss valuations. Appropriate adjustments are then made over a three-year period. 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
worker's compensation and general liability fall under the insurance policies purchased by the City. The CJPIA
provides for liability insurance coverage with a maximum of $50,000,000 per claim. All reserves are invested
and earnings are credited to members in proportion to their equity. At present, the CJPIA has invested reserves
in excess of $100,000,000. Based on historical experience, as of June 30, 1998, the City's year-end deposit with
CJPIA is expected to exceed its liability for claims payable, including incurred but not reported losses, and
therefore no liability for claims payable has been recorded in the general long-term debt account group.
City Retirement Costs
Note 21 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, 1996 was $340,242 up $267,332 from an over funded pension benefit
obligation of $72,910 as of June 30, 1995. Employer contribution rates are reviewed and adjusted annually to
achieve full funding for retirement benefits by the year 2011.
Cash Management
The City Council annually adopts an investment policy that is intended to provide the highest investment return
with the maximum security while meeting the daily cash flow demands of the City and conforming to all state
and local statutes governing the investment of public funds. During the 1997-98 fiscal year, idle funds were
deposited in accordance with this policy in demand deposits, medium-term notes, treasury and agency notes,
treasury money market funds, and a pooled investment administered by the State of California. At all times there
was compliance with the City's investment policy, and safety and liquidity objectives were placed above rates
of return considerations in making deposits and investments. All deposits during the year were insured by the
Federal Deposit Insurance Corporation or were collateralized.
Honorable Mayor, City Council,
and City Manager
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 with annualized earnings on pooled cash investments of 5.51% , compared to
earnings of $3.0 million and annualized earnings on pooled cash investments of 5.65% during 1996-97. Funds
are invested in various types of instruments as shown below. The earnings on pooled cash investments reflects
the downward trend in interest rates during the last twelve months. At June 30, 1998, the Treasurer had 100%
of all available funds invested. The City's total portfolio at year end was $ 47,345,765.
Below is a summary of cash and investments outstanding as of June 30, 1998:
Form 9f Cash and Investments dune 30, 1998
Demand Deposits 238,404
U.S. Treasury Bills/Notes 16,503,681
U.S. Government Agency Securities 12,904,264
Mutual Funds -First American Treasury 5,183,870
Local Agency Investment Fund 12,515,546
Total 47.345,765
As required by State law, the City Council has adopted a comprehensive investment policy specifying the type
and term of City investments. The policy allows the City Treasurer flexibility without endangering the safety,
liquidity or yield of the total portfolio.
Certificate of A3yard for Dutstanding Financial Reporting
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. The City received the
GFOA award for the first year in 1997-98 and the CSMFO award for the previous three years.
xvii
Honorable Mayor, City Council,
and City Manager
Acknowledgments
This report could not have been accomplished without the dedicated services of the Finance Department staff.
Recognition is given to Juan Herrera, Accounting Manager for his efforts in preparing the introductory and
financial sections, Geniene Croft, Financial Services Assistant for her efforts in preparing the statistical section,
Debbie De Renard, Secretary for her report preparation skills and Sharon Christensen, Pam Li Calsi, Misaela
Mendoza, and Pat Parker for their diligence in processing most of the transactions reported upon in the financial
section of this report. We also appreciate the City Manager and City Council for providing the resources to
prepare this report and for their role in preserving the City's framework of internal controls. We further
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.
Resp tfully submitted,
John M. Falconer
Finance Director and Treasurer
xviii
CITY OF LA QUINTA
Directory of Officials
June 30, 1998
CITY COUNCIL
John Pena
Mayor
Terry Henderson
Mayor Pro Tem
Stanley Sniff
Council Member
Don Adolph
Council Member
Ronald Perkins
Council Member
ADMINISTRATION
Thomas P. Genovese
City Manager
Mark Weiss
Assistant City Manger
John M. Falconer
Finance Director
Tom Hartung
Building and Safety Director
Jerry Herman
Community Development Director
Dawn Honeywell
City Attorney
Dodie Horvitz
Community Services Director
Saundra L. Juhola
City Clerk
Chris Vogt
Public Works Director/City Engineer
xix
�Cafst[stunity Services --�
Administration__ _
Director
Recreation Supervisor
Secreta
Senior Center _
Supervisor
Activities Coordinator
Assistant - 3/4 Time
City of La Quinta, California
Organizational Chart
Fiscal Year 1998/99
Mayor and City Council
Redevelopment Agency Board
Assistant City Manager
Management Analyst - 2 Positions
Secretary
Public.Works. Finance
__�_ Adrriinistra8a'n ---
Director
Senior Secretary
Development & Traffic
Senior Engineer
Associate Engineer
Assistant Engineer II - 2 Positions
Assistant Engineer I
Counter Technician
Capital Projects
Senior Engineer
Assistant Engineer I
Maintenance & Operations
Maintenance Manager
Maintenance Foreman - 3 Positions
Maintenance Worker II - 2 Positions
Mninrpnanrp Wnrker I - 5. Pncitinns
Fiscal Services
--- -- oire for --- - -
Accounting Manager
Financial Services Assistant
Account Technician - 2 Positions
Secretary
Account Clerk
City Clerk
Deputy City Clerk - 2 Positions
Secretary
Office Assistant
Building_& Safety -f Community Development,]
1 ..._�
Administration
Director
Senior Secretary
Code Cam /lance
- Community Safety Manager
Code Compliance Officer II
Code Compliance Officer I - 2 Positions
Counter Technician
Animal Control
Animal Control Olticer II - 2 Positions
Animal Control/Code Compliance Officer
2 Positions
Building
Building & Safety Manager
Senior Building Inspector
Building Inspector II
Building Inspector I
Counter Technician
Civic Center Bulldlq Operations
Facilities Maintenance Technician
Administration
Director
Planning Manager
Associate Planner
Executive Secretary
Secreta
Planning
Principal Planner - 2 positions
Associate Planner- 3=
California Society Of
c 14unict"Pal3'i nance . 0 f f iters
Certificate of Award
Outstanding Financial Reporting 1996-97
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 23, 1998
Chair, Professional & Technical Standards Committee
Dedicated to Excellence in Municipal Financial Management
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Quinta,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
yCE i1. n
OF 1
MROSTAMS v,
N
AM
UWA President
cwtPa3MMN
S11 -n
CHICAGO Y�� zermt
Executive Director
CONS CERTIFIED PUBLIC ACCOUNTANTS
► OCI TES, L.L.P. 1 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92614
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (949) 474-2020
Fax (949) 263-5520
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, 1998, 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, 1998, 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.
During the year ended June 30, 1998, the City implemented GASB Statement No. 31 which
changed the manner in which the City accounts for investments, as discussed further in note 30
to the financial statements.
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 slid 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, we have also issued a report dated August
19, 1998 on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts and grants.
August 19, 1998
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, 1998
Governmental Fund Types
Special
Debt
Capital
Assets and Other Debits
General
Revenue
Service
Proiects
Assets:
Cash and investments (note 2)
$ 9,083,175
5,962,772
5,272,572
7,854,997
Cash with fiscal agent (note 2)
-
8,129,831
74,235
8,479,943
Accounts receivable
277,517
23,301
11
81,258
Prepaid items
3,491
-
-
-
Interest receivable
131,324
34,626
-
142,956
Notes receivable (note 27)
-
2,420,750
-
108,217
Due from other funds (note 26)
59,314
62,192
-
306,361
Due from other governments
352,808
5,450
-
-
Advances to other funds (note 14)
8,910,076
551,038
-
-
Deposits
2,175
-
-
-
Property, plant and equipment (note 4)
-
-
-
-
Property held for resale
-
-
-
Other debits:
Amount available in debt service funds
-
-
-
-
Amount to be provided for retirement of
general long-term debt
-
Total assets and other credits
$18,819,880
17 189=960
5,346,818
16,973,732
Liabilities, Equity and Other Credits
Liabilities:
Accounts payable
$ 772,237
54,988
4,340
379,160
Accrued expenses
107,944
-
504,731
-
Compensated absences payable (note 5)
-
-
-
-
Deferred revenue
14,230
-
-
-
Deposits payable
342,581
49,266
-
373,635
Deferred compensation payable
-
-
-
-
Contracts payable
-
-
-
-
Retentions payable
-
-
-
259,532
Due to other funds (note 26)
99,129
224,894
-
103,844
Due to bondholders
-
-
-
-
Advances from other funds (note 14)
-
-
551,038
-
Long-term debt (note 5 through 15)
-
-
-
Total liabilities
1.336.121
329,148
1,060,109
1,116,171
Equity and other credits:
Investment in general fixed assets
-
-
-
-
Contributed capital (note 19)
-
-
-
-
Retained earnings (note 18):
Unreserved
-
-
-
-
Fund balances (note 17):
Reserved
8,915,742
11,101,619
4,286,709
8,588,160
Unreserved
8,568,017
5,759,193
7,269401
Total equity and other credits
17,483,759
16,860.812
4,286,709
15,857,561
Total liabilities, equity and
other credits
$18,819,880
17,189,960
5,346,818 46,818
16,973,732
See accompanying notes to the financial statements.
2
Proprietary
Totals
(Memorandum {Only)
1998
_Fund Types
Fiduciary Fund Types
Account Groups
Internal
12,801,440
General
General
Service
Agency
Fixed Assets
Lonp,-Term Debt
709,295
1,778,945
-
-
-
266
-
-
571,994
-
26,447,453
-
-
-
-
4,286,709
-
-
-
107,040,025
1,281,289
1,779,211
26,447,453
111,326,734
6,362 2,500 - -
- - 313,620
395,202 - -
1,381,509 - -
- - 8,9I0,076
- - - 102,103,038
6,362 1,779,211 - 111,326,734
701,026
573,901
1,274,927
1,281,289
1,779,211
26,447,453
26.447,453
3
111,326,734
27,019,447 27,045,073
- 86,320
4,286,709
Totals
(Memorandum {Only)
1998
1997
30,661,756
25,977,430
16,684,009
12,801,440
382,353
929,488
3,491
339,305
308,906
244,500
2,528,967
2,552,074
427,867
18,957
358,258
187,170
9,461,114
8,651,108
2,175
39,812
27,019,447 27,045,073
- 86,320
4,286,709
4,019,994
107,040,025
98,161,203
199,165,077
181,053.874
1,219,587 1,025,489
612,675
993,983
313,620
350,653
14,230
-
1,160,684
862,195
-
751,836
-
30,008
259,532
17,390
427,867
18,957
1,381,509
1,393,032
9,461,114
8,651,108
102,103,038
93,730,474
116,953,856
107,825,125
26,447,453
26,450,545
701,026
628,720
573,901 508,730
32,892,230 24,457,677
21,596,611 21,183,077
82,211,221 73.228,749
199.165 477 181,053.874
(This page intentionally left blank)
CITY OF LA QUINTA
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types
Year ended June 30, 1998
See accompanying notes to the financial statements.
5
Totals
Special
Debt Capital
(Memorandum Only)
General
Revenue
Service Proiectw
1998
1997
Revenues:
Taxes
$ 6,764,355
3,253,847
13,015,387 -
23,033,589
20,798,374
Licenses and permits
1,144,562
-
- -
1,144,562
793,689
Charges for services
1,228,269
-
- -
1,228,269
976,897
Developer fees
-
178,713
- 2,961,792
3,140,505
3,890,263
Intergovernmental
1,110,553
1,200,519
- 1,167,522
3,478,594
2,441,281
Investment income
1,164,145
728,523
110,618 540,637
2,543,923
2,840,571
Special assessments
-
809,041
- -
809,041
994,110
Rental income
-
395,414
734,623 -
1,130,037
1,299,671
Loss on sale of land
-
(22,678)
- -
(22,678)
-
Litigation settlement proceeds
281,382
-
- 204
281,586
70,584
Miscellaneous
114.969
-
- -
114,969
77.323
Total revenues
11,808,235
6,543.379
13,860,628 4,670,155
36,882,397
34,182,763
Expenditures:
Current:
General government
2,229,389
-
- -
2,229,389
2,404,473
Public safety
4,099,523
33,388
- -
4,132,911
3,511,402
Community services
494,402
-
-
494,402
479,621
Planning and development
345,054
2,729,873
209,588 651,832
3,936,347
3,907,032
Public works
1,159,372
1,188,322
- -
2,347,694
2,201,447
Capital projects
-
-
- 7,588,933
7,588,933
5,318,680
Debt service:
Principal
-
-
1,960,000
1,960,000
1,465,000
Interest
-
-
5,034,169 -
5,034,169
4,921,500
Payments under pass-through
obligations
-
-
9,255,220 -
9,255,220
7,505,062
Total expenditures
8,327,740
3.951.583
1.6,458,977 8,240,765
36,979,065
31,714,217
Excess (deficiency) of
revenues over (under)
expenditures
_3,480,495
2,591.796
(2.598.349] (1.570,610]
(96.668)
2,468.546
Other financing sources (uses):
Operating transfers in
68,902
3,280,377
2,965,779 6,579,703
12,894,761
8,483,908
Operating transfers out
(204,870)
(9,412,442)
(910,721) (2,366,728)
(12,894,761)
(8,708,908)
Proceeds of bonds (net of
issuance costs)
-
-
- 21,565,688
21,565,688
8,500,101
Payments to refunded bond
escrow agent
-
-
- (13,430,939)
(13,430,939)
(8,488,199)
Proceeds of advances from City -
-
_ 810,006 -
810,006
1.446.215
Total other financing
sources (uses)
(135.968]
(6,132,065)
2,865,064 12,347,724
8.944,755
1,233,117
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses 3,344,527
(3,540,269)
266,715 8,777,114
8,848,087
3,701,663
Fund balances at beginning
of year
14,139,232 20,401,08I
4,019,994 7,080,447
45,640,754
41,939,091
Fund balances at end of year
$17,483,759 16.860.812
4,286,709 15857561
54,488.849
45,640754
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, 1998
Excess (deficiency) of revenues
over (under) expenditures 34,377 3,480,495 3,446,118
Other financing sources (uses):
Operating transfers in 3,800 68,902 65,102
Operating transfers out (449,038) (204,870) 244,168
Proceeds of bonds (net of issuance costs) - -
Payments to refunded bond escrow agent -
Proceeds of advances from City - -
Total other financing sources (uses)
(445,238)
General Fund
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
Variance -
and other financing uses
(410,861)
Favorable
Fund balances at beginning of year
Budget
Actual
(Unfavorable)
Revenues:
17,483,759 3,755,388
Taxes
$ 6,043,400
6,764,355
720,955
Licenses and permits
724,500
1,144,562
420,062
Charges for services
748,529
1,228,269
479,740
Developer fees
-
-
-
Intergovernmental
951,150
1,110,553
159,403
Investment income
850,900
1,164,145
313,245
Special assessments
-
-
-
Rental income
-
-
-
Loss on sale of land
-
-
-
Litigation settlement proceeds
-
281,382
281,382
Miscellaneous
37,050
114,969
77,919
Total revenues
9,355,529
11,808,235
21452,706
Expenditures:
Current:
General government
2,599,819
2,229,389
370,430
Public safety
4,296,548
4,099,523
197,025
Community services
605,274
494,402
110,872
Planning and development
676,484
345,054
331,430
Public works
1,143,027
1,159,372
(16,345)
Capital projects
-
-
Debt service:
Principal
-
-
Interest
-
-
-
Payments under pass-through obligations
-
-
-
Total expenditures
9,321,152
8,327,740
993,412
Excess (deficiency) of revenues
over (under) expenditures 34,377 3,480,495 3,446,118
Other financing sources (uses):
Operating transfers in 3,800 68,902 65,102
Operating transfers out (449,038) (204,870) 244,168
Proceeds of bonds (net of issuance costs) - -
Payments to refunded bond escrow agent -
Proceeds of advances from City - -
Total other financing sources (uses)
(445,238)
(135,968) 309,270
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
and other financing uses
(410,861)
3,344,527 3,755,388
Fund balances at beginning of year
14,139,232
14,139,232 -
Fund balances at end of year
$13,728,371
17,483,759 3,755,388
See accompanying notes to the financial statements.
6
Special
Revenue Funds
Debt Service Funds
Capital Projects Funds
354,845 4,042,369
8,777,114 4,734,745
Variance-
20,401,081 -
4,019,994
Variance-
7,080,447
7,080,447 -
Variance -
16,860,812 7,112,367
3 9_ z_31 864
Favorable
354,845 11,122.816
15,857,561 4 734,745
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
3,227,037
3,253,847
26,810
12,908,147
13,015,387
107,240
-
-
-
20,000
178,713
158,713
-
-
-
2,252,314
2,961,792
709,478
739,814
1,200,519
460,705
-
-
-
1,996,213
1,167,522
(828,691)
628,350
728,523
100,173
30,000
110,618
80,618
245,208
540,637
295,429
766,330
809,041
42,711
-
-
-
-
-
-
341,00,0
395,414
54,414
697,600
734,623
37,023
-
-
-
-
(22,678)
(22,678)
-
-
-
-
-
-
-
-
-
-
-
-
204
204
-
-
-
5,600
-
(5,600
-
-
-
5,722,531
6,543,379
820,848
13,641,347
13,860,628
219,281
4,493,735
4,670,155
176,420
43,000
33,388
9,612
7,382,180
2,729,873
4,652,307
254,105
209,588
44,517
2,374,637
651,832
1,722,805
1,244,407
1,188,322
56,085
-
-
-
-
-
-
-
-
-
-
-
-
13,624,842
7,588,933
6,035,909
-
-
-
1,960,000
1,960,000
-
-
-
-
-
-
-
5,034,169
5,034,169
-
-
-
-
-
-
8,436,663
_ 9,255,220
(818,557
-
-
-
_8,669,587
3,951,583
4,718,004
15,684,937
16,458,977
774040
15,999,479,
_ 8,240,765
7,758,714
2,947 05G 2,591,796 5,538,852 {2,043,590) (2,598,349) (554,759 (11,505,744) (3,570,610) 7,935,134
2,822,336 3,280,377 458,041 2,956,049 2,965,779 9,730 12,466,530 6,579,703 (5,886,827)
(10,527,916) (9,412,442) 1,115,474 (1,810,595) (910,721) 899,874 (5,053,166) (2,366,728) 2,686,438
- - 21,565,688 21,565,688 -
- - - (13,430,939) (13,430,939) -
810,006 810,006 - - - -
(7,705,580) (6,132,065 1,573,515 1.955,460 2,865,064 909,604 15,548,113 12,347,724 (3,200.389
(10,652,636)
(3,540,269) 7,112,367
(88,130)
266,715
354,845 4,042,369
8,777,114 4,734,745
20,401,081
20,401,081 -
4,019,994
4,019,994
7,080,447
7,080,447 -
9,748A45
16,860,812 7,112,367
3 9_ z_31 864
4,286,709
354,845 11,122.816
15,857,561 4 734,745
7
CITY OF LA QUINTA
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
All Proprietary Fund Types
Year ended June 30, 1998
See accompanying notes to the financial statements.
8
Totals
(Memorandum Only)
Internal Service
1998
1997
Operating revenues:
Charges for services
$199,731
199,731
13 5,9 13
Operating expenses:
Fuel and oil
27,189
27,189
22,732
Maintenance and parts
33,396
33,396
49,474
Vehicle and insurance
-
-
19,908
Administration
4,626
4,626
3,845
Depreciation
94,840
94,840
34,192
Total operating expenses
160,051
160,051
130,151
Operating income (loss)
39,680
39.680
5,762
Non-operating revenues (expenses):
Investment income
25,491
25,491
25.382
Total non-operating revenues (expenses)
25,491
25,491
25.382
Net income (loss) before operating transfers
65,171
65,171
31,144
Operating transfers:
Operating transfers in
-
-
225,000
Total operating transfers
-
-
225,000
Net income (loss)
65,171
65,171
256,144
Retained earnings at beginning of year
508,730
508.730
252,586
Retained earnings at end of year
$573,901
573.901
508,730
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, 1998
Non -Cash Investing, Capital, and Financing Activities
During the year ended June 30, 1998, fixed assets with a net book value of $72,306 were
transferred to the internal service fund from the general fixed assets account group.
See accompanying notes to the financial statements.
Totals
Memorandum Onl
Internal Service
1998
1997
Cash flows from operating activities:
Cash received from other customers
$199,731
199,731
135,913
Cash payments to suppliers for goods and services(66,366)(66,366)_(U.442)
Net cash provided by (used for)
operating activities
133,365
133,365
47,471
Cash flows from non -capital financing activities:
Cash received from other funds
-
-
225,000
Net cash provided by (used for)
non -capital financing activities
-
-
225,000
Cash flows from investing activities:
Interest received on investments
25,491
25,491
28,087
Net cash provided by (used for)
investing activities
25,491
25,491
28,087
Net increase (decrease) in cash
and cash equivalents
158,856
158,856
300,558
Cash and cash equivalents at beginning of year
550,439
550,439
249,881
Cash and cash equivalents at end of year
$709,295
709,295
550,439
Reconciliation of operating income to net cash
provided by operating activities:
Operating income (loss)
$ 39,680
39,680
5,762
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
94,840
94,840
34,192
Increase (decrease) in accounts payable
(1,155)
_CL,55
7,517
Net cash provided by (used for) operating activities
$133,365
133,365
47,471
Non -Cash Investing, Capital, and Financing Activities
During the year ended June 30, 1998, fixed assets with a net book value of $72,306 were
transferred to the internal service fund from the general fixed assets account group.
See accompanying notes to the financial statements.
CITY OF LA QUINTA
Notes to the Financial Statements
Year ended June 30, 1998
(1) -Summary of Significant 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 community services including public safety, highway and
street maintenance, health and social services, cultural and leisure services, public
improvements, planning and zoning services, and community development
services. Approximately 30% of General Fund revenues are derived from the
transient occupancy tax generated by the La Quinta Hotel, a prominent resort in
the region.
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:
10
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
1 Summary of Significant Accounting Policies Continued
La OLMita Redevelopment Agencv
The La Quinta Redevelopment Agency ("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.
City of La Quinta Public Financing Authority
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 Accounting
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 fiends and
account groups classified for reporting purposes as follows:
11
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
GOVERNMENTAL FUNDS
General Fund
The primary fund of the City is used to account for all revenue and expenditures
of the City not legally restricted as to use. A broad range of municipal activities
are provided through this fund including City Manager, City Attorney, Finance,
City Clerk, Community Development, Police Services, Public Works, Building
and Safety, and Community Services.
S12ecial 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.
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.
12
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies. (Continued)
FIDUCIARY FUNDS
A,genc Fund
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.
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.
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 Group
The General Long -Term Debt Account Group is used to account for all long-term
debt of the City.
(c) Measurement Focus and Basis of Accounting
Governmental (general, special revenue, debt service and capital projects) fund
types are accounted for on a "spending" measurement focus. Accordingly, only
current assets and current liabilities are included on their balance sheets. The
reported fund balance provides an indication of available, spendable resources.
Operating statements for governmental fund types report increases (revenues) and
decreases (expenditures) in available spendable resources.
13
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(I } Summary of Significant Accounting Policies, (Continued)
(c) Measurement Focus and Basis of Accounting, (Continued)
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.
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.
14
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary ofSignifcant Accounting Policies, (Continued)
(d) Budgetary 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.
Additional appropriations in the amount of $9,974,319 were made during the
year. Prior year appropriations lapse unless they are approved for carryover into
the following fiscal year. Expenditures may not legally exceed appropriations at
the department level. Reserves for encumbrances are not recorded by the City of
La Quinta.
(e) Interfund Transfers
Nonrecurring transfers of equity between funds are reported as an adjustment to
beginning fund balance. Operating transfers are reported as other sources and
uses of funds in the statement of revenues, expenditures, and changes in fund
balances.
(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 reported in the accompanying, balance sheet at fair value, except
for certain certificates of deposit and investment contracts that are reported at cost
because they are not transferable and they have terms that are not affected by
changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale
of investments.
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash
and investment balance.
15
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(l) SumMM of Significant Accoiutting Policies. (Continued)
(h) Due from Other Governments
The amounts recorded as a receivable due from other governments include sales
taxes, property taxes, and grant revenues, collected or provided by Federal, State,
County and City Governments and unremitted to the City as of June 30, 1998.
The County of Riverside assesses, bills, and collects property taxes for the City.
(i) Property, Plant and Equipment
Property, plant and equipment used in governmental fund type operations are not
capitalized in the funds used to acquire or construct them. Instead, capital
acquisition and construction are reflected as expenditures in the governmental
fund, and the related assets are carried in the General Fixed Assets Account
Group.
Property, plant and equipment are recorded at cost where historical records are
available and at an estimated historical cost where no historical records exist.
Donated fixed assets are valued at their estimated fair market value at the date of
the donation.
Public domain ("infrastructure") general fixed assets consisting of certain
improvements other than buildings, including roads, bridges, curbs and gutters,
streets and sidewalks, drainage systems and lighting systems are not capitalized,
as these assets are immovable and of value only to the government.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized. Improvements are
capitalized and depreciated over the remaining useful lives of the related fixed
assets, as applicable.
Assets in the general fixed assets account group are not depreciated. Depreciation
of building improvements, equipment, and vehicles in the proprietary fund is
computed over the estimated useful lives using the straight-line method.
The following schedule summarizes proprietary fund type fixed asset useful lives:
Building improvements 15 years
Equipment and furniture 3-20 years
Vehicles 5 years
16
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
0) Property Held for Resale
Land held for resale represents property acquired by the Agency for resale. The
property is recorded at original cost. No write-down for a lower market value has
been reflected in the accompanying financial statements.
(k) . Employee Leave Benefits
Sick time is vested on a percentage based on number of years employed at the
City. Maximum accumulation of sick and vacation is 30 and 40 days,
respectively.
Upon termination or retirement, permanent employees are entitled to receive
compensation at their current base salary for all unused vacation leave. If an
employee terminates with a minimum of two years service, the employee is
entitled to receive 25% of the value of his unused sick leave. The percentage
increases by 25% for each five year period until the employee is entitled to 75%
of the value of his unused sick leave. This will occur upon the completion of ten
years of continuous employment.
(1) Capitalization of Leases
Capitalized leases have been treated in accordance with Financing Accounting
Standards Board Statement No. 13 (Accounting for Leases) (see note 6).
(m) Claims and Judgments
The City records a liability for material litigation, judgments, and claims
(including incurred but not reported losses) when it is probable that an asset has
been impaired or a material liability has been incurred prior to year end and the
probable amount of loss (net of any insurance coverage or available funds on
deposit) can be reasonably estimated.
(n) Postemplo,yrnent Benefits
The City does not provide postemployment benefits (other than pension benefits)
to its employees.
(o) Capital Projects
Capital projects expenditures include public domain or infrastructure projects
which are not capitalized as additions to general fixed assets.
17
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) SummM of Significant Accounting Policies, (Continued)
(p) 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.
(q) Applicability of FASB Pronouncements to Proprietary 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.
(r) 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.
Cash and Investments
Cash and investments are reported as follows on the combined balance sheet:
Cash and investments
Cash with fiscal agent
Total
18
$30,661,756
16,684,009
$47,345,765
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
() Cash and Investments, (Continued)
Cash and investments held by the City at June 30, 1998 consisted of the following:
Demand deposits
Investments
Total
$ 238,404
47,107,361
$47,345,765
The City and its component units are authorized by its investment policy to invest in the
following types of investments:
Investment Type Maximum %
Savings/operating accounts
85%
Government pools
35%
U.S. government and agency securities
75%
Bankers' Acceptances
30%
Commercial Paper
30%
Mutual Funds
20%
Certificates of Deposit
60%
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.
19
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(2) Cash and, Investments, (Continued)
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 DeAosit
Deposits held by the City:
Demand deposits
Category Bank Book
1 2 3 Balance Balance
$100.040 263,185 162,881 526.066 238.404
$100,000 263.185 162.881 526,066 238.404
Investments of cities in securities are classified in three categories to give an indication of
the level of custodial risk assumed by the entity.
Category 1 - includes investments that are insured or registered or for which the securities
are held by the City or the City's custodial agent (which must be a different institution
other than the party through which the City purchased the securities) in the City's name.
Investments held "in the City's name" include securities held in a separate custodial or
fiduciary account and identified as owned by the City in the custodian's internal
accounting records.
Category 2 - includes uninsured and unregistered investments for which the securities are
held in the City's name by the dealer's agent (or by the trust department of the dealer if
the dealer was a financial institution and another department of the institution purchased
the securities for the City).
Category 3 - includes uninsured and unregistered investments for which the securities are
held by the dealer's trust department or agent, but not in the City's name. Category 3
also includes all securities held by the broker-dealer agent of the City (the party that
purchased the securities for the City) regardless of whether or not the securities are being
held in the City's name.
20
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
{2) Cash and Investments, (Continued)
Cateao
1 2 3 Caraing Amount
Investments held by the City:
U.S. Treasury Notes $ 8,002,399 - - 8,002,399
Federal Home Loan Bank 5,000,000 - - 5,000,000
FNMA 4,984,187 - - 4,984,187
Investments held by fiscal agent:
U.S. Treasury Notes
U.S. Treasury Bill
Federal Home Loan Bank
FNMA
8,013,696
487,586
973,554
1,946,523
$17.986.586 11.421,359
Investments held by the City not subject to categorization:
Investment in State of California Local Agency Investment Fund
Investments held by fiscal agent not subject to categorization:
Investment in mutual funds:
First American Treasury Obligation Fund
8,013,696
487,586
- 973,554
- 1.946.523
- 29,407,945
12,515,546
5,183,870
$47,107,361
The carrying amounts of the above investments do not differ materially from their fair
value.
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the City's investment in this pool is
reported in the accompanying financial statements at amounts based upon the City's pro -
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to
the amortized cost of that portfolio). This was not materially different from the reported
value of the portfolio, which is at amortized cost. The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. 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.
21
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(3) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex
formulas. Accordingly, the City of La Quinta accrues only those taxes 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.
22
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, 1998 are as
follows:
The following is a summary of proprietary fund type fixed assets for the City at June 30,
-1998:
Building improvements
Equipment
Vehicles
Less accumulated depreciation
Total
23
Internal Service Fund
$613,890
107,340
377,635
(526,871
$571,994
Transfers
Balance at
to Proprietary
Balance at
June 30, 1997
Additions Retirements Funds
June 30, 1998
Land
$13,280,910
- - -
13,280,910
Equipment and furniture
954,079
172,095 (102,881) (9,001)
1,014,292
Vehicles
224,357
- - (63,305)
161,052
Leasehold improvements
201,070
- - -
201,070
Buildings
11,790,129
- - -
11,790,129
Total
$26,450,545
172,095 CM1881) (72106)
26,447 453
The following is a summary of proprietary fund type fixed assets for the City at June 30,
-1998:
Building improvements
Equipment
Vehicles
Less accumulated depreciation
Total
23
Internal Service Fund
$613,890
107,340
377,635
(526,871
$571,994
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(5) General Long -Tenn Debt
Changes in general long-term debt for the year ended June 30, 1998 were as follows:
RDA Project Area No. 2:
Tax allocation bonds 5,505,000 6,750,000 (5,505,000) 6,750,000
Housing tax allocation bonds 4,777,615 - (67,021) 4,710,594
Due to County of Riverside 1,803,518 476,022 - 2,279,540
Advances from other funds* 4,450,218 445,021 - 4,895,239
Financing Authority:
Revenue bonds _ 8,790,000 - (285.000) 8.505.000
Total 102,18I,1.97 25,485,048 {16,339,511) 111,326,734
* 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) Capital Leases Payable
The City entered into two capital leases in July 1997 to acquire copiers. Per lease
agreements, monthly payments are $752 and $397, respectively, with the final payment
due in July 2000.
24
Balance at
Balance at
July 1, 1997
Additions
Deletions
June 30, 1,998
City:
Compensated absences payable
$ 350,653
-
(37,033)
313,620
Capital leases payable
-
30,709
(8,570)
22,139
Due to the Coachella Valley Association
of Governments
-
778,311
(50,000)
728,311
Developer Agreements Payable
-
880,000
(99,129)
780,871
RDA Project Area No. 1:
Tax allocation bonds
32,820,000
15,760,000
(8,695,000)
39,885,000
Housing tax allocation bonds
17,677,385
-
(247,979)
17,429,406
Pass-through agreements payable:
Due to County of Riverside
10,517,138
-
(195,086)
10,322,052
Desert Sands Unified School District
569,010
-
(569,010)
-
Coachella Valley Unified School District
11,270,808
-
(580,683)
10,690,125
Advances from other funds*
3,649,852
364,985
-
4,014,837
RDA Project Area No. 2:
Tax allocation bonds 5,505,000 6,750,000 (5,505,000) 6,750,000
Housing tax allocation bonds 4,777,615 - (67,021) 4,710,594
Due to County of Riverside 1,803,518 476,022 - 2,279,540
Advances from other funds* 4,450,218 445,021 - 4,895,239
Financing Authority:
Revenue bonds _ 8,790,000 - (285.000) 8.505.000
Total 102,18I,1.97 25,485,048 {16,339,511) 111,326,734
* 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) Capital Leases Payable
The City entered into two capital leases in July 1997 to acquire copiers. Per lease
agreements, monthly payments are $752 and $397, respectively, with the final payment
due in July 2000.
24
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(7) Due to the Coachella Valley_ Association of Governments
The City of La Quinta entered into an Interchange Reimbursement Agreement with the
Coachella Valley Association of Governments (CVAG) to finance capital improvements
at the Washington Street I-10 interchange. The City will reimburse CVAG $828,311
over a period of seventeen years beginning July 31, 1996. The annual payments to
CVAG range from $28,311 to $50,000. At June 30, 1998, the balance was $728,311.
[8)_ Developer Agreements Payable
A developer lease agreement was entered into in December 1996 between the City of La
Quinta and Home Depot U.S.A., Inc. for $880,000. As stipulated by the agreement,
Home Depot conveyed the title to certain property to the City, the City then leased the
same property to Home Depot for one dollar. Home Depot then subleased the same
property back to the City. The City's lease payment to Home Depot each year are equal
to 48% of sales tax revenues generated by the store up to a maximum of $128,680 per
year. The payments will continue for 12 years after the date that the City first receives
sales tax revenues from the store or until total principal and interest due has been paid to
Home Depot. Interest due on the outstanding principal is eight percent (8%) per annum.
Home Depot is required by the agreement to pay for certain street improvements in the
vicinity of the store. The balance at June 30, 1998 was $780,871.
(21 Tax Allocation Bonds
As of June 30, 1998, the following issuances of Tax Allocation Bonds were outstanding:
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 $24,125,000.
25
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
9 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, 1998, $6,280,000 and $15,875,000 of the 1989 and
1990 defeased bonds are outstanding, respectively.
Series 1998. Proiect Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued
by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable from pledged tax increment revenues on a parity with the Agency's
previously issued Tax Allocation Refunding Bonds, Series 1994.
Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter,
through September 1, 2028, at a price equal to the principal amount thereof plus accrued
interest. A portion of the proceeds was used to obtain a surety agreement to satisfy the
bond reserve requirement. The principal balance of outstanding bonds at June 30, 1998 is
$15,760,000..
A portion of the bond proceeds, in the amount of $7,822,592, was deposited in an
irrevocable trust with an escrow agent to provide for all future debt service payments on
the 1991 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. The total debt service payments on the new debt (refunding portion) are
$6,022,599 greater than the total debt service payments on the old debt, primarily as a
result of extending the period over which the new debt service will be paid. However,
this was almost entirely offset by the interest savings associated with the reduction in
interest rates, thereby resulting in a small economic loss of only $111,737. As of June 30,
1998, $7,460,000 of the defeased bonds are outstanding.
26
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(9) Tax Allocation Bonds, (Continued)
Series 1998, Proiect Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 2.
Interest rates on the bonds range from 3.75% to 5.28% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable solely from pledged tax increment revenues of Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and September
1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal
amount thereof plus accrued interest. A portion of the proceeds was used to obtain a
surety agreement to satisfy the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 1998 is $6,750,000.
A portion of the bond proceeds, in the amount of $5,608,347, was deposited in an
irrevocable trust with an escrow agent to provide for all future debt service payments on
the 1992 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. The total debt service payments on the new debt (refunding portion) are
$1,561,149 greater than the total debt service payments on the old debt, primarily as a
result of extending the period over which the new debt service will be paid. However, the
present value of the difference between the old debt service and the new debt service
resulted in an economic gain of $1,026,531 after taking into account the time value of
money. This reflects the savings associated with the reduction of interest rates that
resulted from the refunding. As of June 30, 1998, $5,380,000 of the defeased bonds are
outstanding.
(10) 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.
27
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
10 1995 Housing Tax Allocation Bonds TABS Continued
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, 1998 is $22,140,000.
01) 1996 Lease Revenue Refunding Bonds
On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue
Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the
amount of $8,200,000 and to provide funds for construction of remaining improvements
to the La Quinta Civic Center site.
The bonds consist of $3,630,000 of serial bonds and $5,160,000 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,
1998 was $8,505,000.
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 an irrevocable 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. At June 30, 1998, the amount of defeased bonds outstanding is $7,460,000.
28
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
12 Due to Count of Riverside
Project Area No. 1
Based on an agreement amended December 21, 1993 between the Agency, the City of La
Quinta, and the County of Riverside (County), the Agency will pay to the County
$1.0,517,138 from tax increment revenue relating to Project Area No. 1. This agreement
is in consideration of the tax revenues lost by the County as a result of the formation of
Project Area No. 1. The tax increment is to be paid to the County over a payment
schedule through June 30, 2006 in annual amounts ranging from $386,764 to $2,190,473.
Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1998 was
$10,322,052.
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, 1998 was $2,279,540.
{13) 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, 1998 totaled $10,690,125. 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.
29
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(14) 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:
There is no stipulated repayment date established for the City advances. Interest is paid
at 10% per year.
In addition, the Agency elected to borrow $511,903, and $39,135 from Project Area No.
1 and Project Area No. 2, respectively, 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).
(1 51 Debt Service Requirements to Maturity
The minimum annual requirements (including sinking fund requirements) to amortize the
long-term debt of the City as of June 30, 1998 are as follows (advances payable to the City,
the pass-through obligation owed by Project Area No. 2 to the County, and the Developer
Agreements payable have been excluded since minimum annual debt service payments
have not been established):
30
Balances at
Balances at
July 1, 1997,
Proceeds Repayments
June 30, 1998
Agency expenditures
incurred by the City:
Project Area No. 1
$3,649,852
364,985 -
4,014,837
Project Area No. 2
4,450.218
445,021 _
4,895,239
Total
$8.100,070
810,006 -
8,910,076
There is no stipulated repayment date established for the City advances. Interest is paid
at 10% per year.
In addition, the Agency elected to borrow $511,903, and $39,135 from Project Area No.
1 and Project Area No. 2, respectively, 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).
(1 51 Debt Service Requirements to Maturity
The minimum annual requirements (including sinking fund requirements) to amortize the
long-term debt of the City as of June 30, 1998 are as follows (advances payable to the City,
the pass-through obligation owed by Project Area No. 2 to the County, and the Developer
Agreements payable have been excluded since minimum annual debt service payments
have not been established):
30
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
15 Debt Service Requirements to Maturity. Continued
31
1996
Pass-through Agreements
Lease
1995
1998
1998
Revenue
Coachella
County
Ending Capital
Housing
1994
TABS
TABS
Refunding
Valley
of
June 30 Leases
CVAG
TABS
TABS
P.A. No. 1
P.A. No. 2
Bonds
USD
Riverside
Total
1998-99 $13,781
50,000
1,591,790
2,625,330
614,640
256,506
684,573
621,976
773,528
7,232,124
1999-00 13,781
50,000
1,592,570
2,624,696
819,520
420,507
679,670
649,927
773,528
7,624,199
2000-01 1,148
50,000
1,592,187
2,624,885
819,520
417,467
678,955
670,817
1,803,705
8,658,684
2001-02 -
50,000
1,590,690
2,620,315
819,520
419,249
682,178
684,233
1,803,705
8,669,890
2002-03 -
50,000
1,592,820
2,620,855
819,520
420,747
679,435
697,918
1,803,705
8,685,000
2003-04 -
50,000
1,588,538
2,599,465
819,520
417,080
680,830
711,877
2,190,473
9,057,783
2004-05 -
50,000
1,587,990
2,612,140
819,520
418,264
681,220
726,114
2,190,473
9,085,721
2005-06 -
50,000
1,590,890
2,597,700
819,520
419,167
680,575
740,636
2,190,473
9,088,961
2006-07 -
50,000
1,645,502
2,593,456
819,520
419,785
678,865
755,449
-
6,962,577
2007-08 -
50,000
1,646,470
2,590,816
819,520
420,135
675,880
770,558
-
6,973,379
2008-09 -
50,000
1,645,125
2,584,232
819,520
420,184
676,450
785,968
-
6,981,479
2009-10 -
50,000
1,641,540
2,578,160
819,520
419,550
675,280
801,688
-
6,985,738
2010-11 -
50,000
1,640,840
2,571,868
819,520
418,272
672,525
817,722
-
6,990,747
2011-12 -
50,000
1,641,650
2,569,442
819,520
416,738
673,521
834,076
-
7,004,947
2012-13 -
28,311
1,638,750
2,560,155
819,520
419,819
673,130
421,166
-
6,560,851
2013-14 -
-
1,638,300
-
1,457,490
417,516
671,351
-
-
4,184,657
2014-15 -
1,635,150
-
1,457,520
414,956
673,046
-
4,180,672
2015-16 -
1,634,150
-
1,455,730
417,012
673,076
-
4,179,968
2016-17 -
1,630,150
-
1,456,990
418,556
671,441
-
-
4,177,137
2017-18 -
-
1,632,850
-
1,451,300
414,716
668,141
-
-
4,167,007
2018-19 -
-
1,627,100
-
1,453,530
415,491
668,038
-
-
4,164,159
2019-20 -
-
1,627,750
-
1,453,420
415,631
-
-
-
3,496,801
2020-21 -
-
1,624,500
-
1,450,970
415,131
-
-
3,490,601
2021-22 -
-
1,622,200
-
1,451,050
414,106
-
-
-
3,487,356
2022-23 -
-
1,620,550
-
1,448,530
417,425
-
-
-
3,486,505
2023-24 -
_
1,619,250
-
1,448,280
415,088
-
3,482,618
2024-25 -
-
1,613,150
-
1,445,170
417,094
-
-
-
3,475,414
2025-26 -
1,611,950
-
1,444,070
413,444
-
-
-
3,469,464
2026-27 -
-
-
-
1,439,850
414,137
-
-
1,853,987
2027-28 -
-
-
-
1,437,380
414,044
-
-
-
1,851,424
2028-29 -
-
-
-
1,436,400
413,162
-
-
-
1,849,562
2029-30 -
-
-
-
-
411,494
-
-
-
411,494
2030-31 -
-
-
-
-
413,906
-
-
-
413,906
2031-32 -
-
-
-
-
410,400
-
-
410,400
2032-33 -
-
-
-
-
410,975
-
-
410,975
2033-34 -
-
-
410.500
-
-
410.500
Principal and
interest 28,710
728,311 45,364,402
38,973,515
35,275,600 14,828,254 14,198,180 10,690,125 13,529,590 173,616,687
Less:
Interest (6,571
- (23,224,402} (14,848,515}
{ 19,515.600] (8,078.254 (2&91,180
-3 207.538) (74,574,060}
*Total
principal $22,139
728,311 22,140,000
24,125,000
15,760,0006,750,000
8,505,000 10,690,125 10,322,052990_42,627
* Net present value of future lease payments for capital leases.
31
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
16) 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, 1998:
Assessment Assessment Assessment Assessment Assessment
District No. 88-1 District No. 89-2 District No. 90-1 District No. 9 1 -1 District No. 92-1
Proceeds
$855,984
1,153,974
1,227,155
2,240,866
1,880,891
Maturity Date
9/2/04
9/2/04
9/2/05
9/2/06
9/2/08
Interest Rate
5.50%-7.25%
6.65%-6.75%
6.50-7.00%
6.70%-6.80%
5.00%-5.40%
Amount outstanding
at June 30, 1998
$365,000
570,000
680,000
1,455,000
1,455,000
J-1 7) 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, 1998 consisted of the following reserves and designations:
32
Totals
General
Special
Debt
Capital
(Memorandum
Fund
Revenue
Service
Proiects
Only)
Reserved for:
Debt service requirements
$ -
-
4,286,709
-
4,286,709
Bond projects
-
8,129,831
-
8,479,943
16,609,774
Advances to other funds
8,910,076
551,038
-
-
9,461,114
Prepaid items
3,491
-
-
-
3,491
Deposits
2,175
-
-
-
2,175
Notes receivable
-
2,420,750
-
108,217
2528,967
Subtotal
8,915,742
11,101,619
4,286,709
8,588,160
32,892,230
32
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
17 Reserves and Designations of Fund Balances, Continued
18) Retained Earnings
As of June 30, 1998, 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..
(19) Contributed Capital
A summary of changes in contributed capital for the year ended June 30, 1998 are as
follows:
Balance at June 30, 1997 $ 628,720
Fixed Assets contributed by developers -
Fixed Assets contributed by other funds 72,306
Balance at June 30, 1998 $701,026
33
Totals
General
Special
Debt Capital
(Memorandum
Fund
Revenue
Service Proiects
Only)
Unreserved:
Designated for:
Emergency reserve
$ 4,192,290
-
- -
4,192,290
Cash flows
1,300,000
-
- -
1,300,000
Operations/projects/transfers
3,075,727
5,839,915
- 7,281,216
16,196,858
Undesignated
-
(80,722)
- (11,815}
(92,537}
Subtotal
8,568,017
5,759,193
7,269,401 �
21,596,611
Total fund balances
$17,483,759
16860812 �_,
4,286,709 15,857 561
54 4841
18) Retained Earnings
As of June 30, 1998, 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..
(19) Contributed Capital
A summary of changes in contributed capital for the year ended June 30, 1998 are as
follows:
Balance at June 30, 1997 $ 628,720
Fixed Assets contributed by developers -
Fixed Assets contributed by other funds 72,306
Balance at June 30, 1998 $701,026
33
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
20 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.
During the year ended June 30, 1998, the City placed these assets in a trust as prescribed
by Internal Revenue Code Section 457(g). Consequently, these assets have been removed
from the City's financial statements.
L2 1) Defined Benefit Pension Plan
Plan Description
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), an agent multiple -employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost -of -living adjustments, and
death benefits to plan members and beneficiaries. PERS acts as a common investment
and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by state statute and city
ordinance. Copies of PERS' annual financial report may be obtained from their executive
office: 400 P Street, Sacramento, California 95814.
Funding Policy
Participants are required to contribute 7% of their annual covered salary. The City makes
the contributions required of City employees on their behalf and for their account. The
City is required to contribute at an actuarially determined rate; the current rate is 5.476%
for non -safety employees of annual covered payroll. The contribution requirements of
plan members and the City are established and may be amended by PERS.
Annual Pension Cost
For 1998, the City's annual pension cost of $427,611 for PERS was equal to the City's
required and actual contributions. The required contribution was determined as part of
the June 30, 1996, actuarial valuation using the entry age normal actuarial cost method.
The actuarial assumptions included (a) 8.5% investment rate of return (net of
administrative expenses), (b) projected annual salary increases that vary by duration of
service, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an
inflation component of 4.5%. The actuarial value of PERS assets was determined using
techniques that smooth the effects of short-term volatility in the market value of
investments over a four-year period (smoothed market value). PERS unfunded actuarial
34
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
L1)_ Defined Benefit Pension Plan (Continued)
Annual Pension Cost, (Continued)
accrued liability is being amortized as a level percentage of projected payroll on a closed
basis. PERS has combined the prior service unfunded liability and the current service
unfunded liability into a single initial unfunded liability. The single funding horizon for
this initial unfunded liability is June 30, 2011.
Miscellaneous Employees
Three -Year Trend Information
22) Claims Pale/Self Insurance
The California Joint Powers Insurance Authority (CJPIA) was formed under a joint
exercise of powers agreement between local governments 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 CJPIA in order to achieve long term premium stability.
Each member city must remain in the pool for three years. Each year, the self-insured
pool undergoes a retrospective deposit computation based on current incurred loss
valuations. Appropriate adjustments are then made over a three year period. 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
35
Annual Pension
Percentage of
Net Pension
Fiscal Year
Cost (APC)
APC Contributed
Obli ag tion
6/30/96
$219,522
100%
-0-
6/30/97
239,356
100%
-0-
6/30/98
218,983
100%
-0-
Required Supplementary Information ($ amount in thousands)
Entry Age
Normal Actuarial
Unfunded
Annual
UAAL
Accrued Value
Liability/
Covered
As a % of
Valuation Date
Liability of Assets
(Excess Assets) Funded Status
Payroll
Payroll
06/30/94
$2,282,875 2,290,827
(7,952) 100.3%
2,556,263
(0.311%)
06/30/95
2,763,799 2,836,709
(72,910) 102.6%
2,599,639
(2.805%)
06/30/96
3,296,923 3,637,165
(340,242) 110.3%
2,717,286
(12.521%)
22) Claims Pale/Self Insurance
The California Joint Powers Insurance Authority (CJPIA) was formed under a joint
exercise of powers agreement between local governments 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 CJPIA in order to achieve long term premium stability.
Each member city must remain in the pool for three years. Each year, the self-insured
pool undergoes a retrospective deposit computation based on current incurred loss
valuations. Appropriate adjustments are then made over a three year period. 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
35
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(22) Claims Payable/Self Insurance, (Continued)
claims in excess of the self-insured amount for workers' compensation and general
liability fall under the insurance policies purchased by the City. The CJPIA provides for
liability insurance coverage with a maximum of $50,000,000 per claim. All reserves are
invested and earnings are credited to members in proportion to their equity. At present,
the CJPIA has invested reserves in excess of $100,000,000. Based on historical
experience, as of June 30, 1998, the City's year end deposit with CJPIA is expected to
exceed its liability for claims payable (including incurred but not reported losses) and
therefore no liability for claims payable has been recorded in the general long-term debt
account group.
(23) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 1998 exceeded the appropriations of the
following funds/departments:
Budget Actual Variance
General funds:
City manager
$129,851
150,146
(20,295)
Fiscal services
155,440
201,152
(45,712)
Public works administration
112,112
125,126
(13,014)
Development and traffic
413,045
497,549
(84,504)
Interfund reimbursements
246,609
255,682
(9,073)
Capital projects administration
(70,393)
51,134
(121,527)
Special revenue funds:
Low/Moderate Bond Project Area No. 2
210,812
231,095
(20,283)
Debt Service funds:
Financing Authority
740,223
741,050
(827)
Capital projects funds:
Redevelopment Agency Project Area No. 1
362,700
370,024
(7,324)
24 Contin envies
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.
36
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
L2 5) Year 2000 Project
The City of La Quinta is in the process of evaluating its computer systems to ascertain
which of its systems might be impacted by a failure of the computer hardware or
programming code to properly recognize and process transactions dated on or after the
year 2000. The systems under evaluation include:
Air Conditioning/Heating Systems
Phone Systems (G3iV1)
Phone Systems (Audix 2.1.1)
Phone System (Homisco)
Mobile Phones (Nextel)
Street Lights
Traffic Signals
User Software (Various Applications)
Accounting Software (ForFLND by Mirasoft, Inc.)
Irrigation Systems
Stadium Lights
Drainage Pumps
Computer Operating System Software
Generally, the City is in the Assessment Stage of completion for all systems listed above.
The City has incurred (or will incur) the following estimated costs associated with its
Year 2000 project:
Evaluation of Y2K Compliance
• Money spent before June 30, 1998 on Y2K evaluation $ -
• Money expected to be spent to complete Y2K evaluation in 1998-99 5,000
• Money to be spent in the future correcting Y2K problems To be determined
Hardware and Software Upgrades
• Money spent before June 30, 1998 on Y2K upgrades $ -
• Money expected to be spent on Y2K upgrades during 1998-99 25,000
• Money to be spent in 1999-2000 to correct Y2K problems Depends on final
assessment
The scope of the financial statement audit does not include an evaluation of the adequacy
of management's plans with respect to this issue. Action taken or planned by the City for
each stage relating to this project is as follows:
37
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
25 Year 2000 Project Continued
Awareness Stage - The City of La Quinta has conducted a thorough inventory of its
computer systems, software and related systems, which may be affected by the year 2000
date. It has completed this initial identification and has identified 95% of the items as
either compliant or non-compliant. The City of La Quinta has also sent out a vendor
survey to gain information from vendors as to their Y2K awareness and the steps they are
taking to ensure compliance.
Assessment Stage - The City of La Quinta is just starting the assessment stage. Review
of the audit finding will identify compliant and non-compliant systems. Responses to
outside vendor surveys will be received and potential problems will need to be identified.
Some of the non-compliant issues may not affect City operations. Each case of non-
compliance will be evaluated on an individual basis. Contingency plans should also be
worked up for each department, in case of system failure due for whatever reason (i.e.,
streetlights, payroll systems, delivery of electricity, etc.). Completion of assessment to be
completed January 1999.
Remediation Stage - Once non-compliance has been identified, and this non-compliance
has been found to impact negatively on City operations, the City of La Quinta will review
options for replacing this system or switching vendors. At this time, the City of La
Quinta is requiring all purchases of systems and related items be Y2K compliant.
Remediation stage to be completed February 1999.
Validation/Testing - Validation and testing will be started in Spring of 1999. The nature
of the testing for the data processing system will be to change the dates on the hardware
and process batches to identify potential problems. This testing will be done after hours
or weekends.
Implementation Stage - The implementation of Year 2000 compliance will depend
largely on the cost of items identified and the amount of time required to correct the
problem. The work done thus far indicates that implementation will occur during the
1999-00 fiscal year.
38
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(26)Due From .and To Other Funds
Current interfund receivables and payables balances at June 30, 1998 are as follows:
General Fund
Special Revenue Funds:
Low/Moderate Income Housing PA No. 1
Low/Moderate Bond - PA No. 1
Low/Moderate Bond - PA No. 2
Capital Projects Funds:
Infrastructure
Capital improvement
Financing Authority
Total
(27) Notes Receivable
Current
Current
Interfund
Interfund
Receivables
Pales
$ 59,314
99,129
62,192 -
- 109,691
115,203
- 92,029
306,361 -
- 11.815
.$427,867 427,867
In September 1994, the Agency sold certain real property to E.G. Williams Development
Corporation for $2,112,847. The property was used to construct single-family homes and
rental units to increase the City's supply of low and moderate income housing. The note
bears interest at 6% per annum and is due in full on June 15, 2029. At June 30, 1998, the
outstanding balance plus accrued interest is $2,420,750. At June 30, 1998, the total
outstanding balance of all notes receivable (including other notes aggregating $108,217)
is $2,528,967.
(283 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.
39
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
28 Proposition 218 Continued
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.
(29) Construction Commitments
The following material construction commitments existed at June 30, 1998:
Q0j Change in Accounting Principle
During the year ended June 30, 1998, the City implemented GASB Statement No. 31
which requires that the City use fair values (instead of amortized cost) for financial
reporting purposes, as described more fully in note 1 to the financial statements. The
cumulative effect of applying this statement upon the beginning fund balances (or
retained earnings) of each fund was not material, and accordingly, those balances have
not been restated.
40
Expenditures as of
Remaining
Project Name
June 30, 1998
Commitments
Utility Underground
$ 27
306,972
4 Signal Project
503,343
301,397
Washington Storm Drain
23,760
397,690
Civic Center Campus
8,442
700,982
Miles/Washington St Widening
14,039
2,165,678
Q0j Change in Accounting Principle
During the year ended June 30, 1998, the City implemented GASB Statement No. 31
which requires that the City use fair values (instead of amortized cost) for financial
reporting purposes, as described more fully in note 1 to the financial statements. The
cumulative effect of applying this statement upon the beginning fund balances (or
retained earnings) of each fund was not material, and accordingly, those balances have
not been restated.
40
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, City Clerk,.
Community Development, Police Services, Public Works, Building and Safety, and Community
Services.
41
CITY OF LA QUINTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended June 30, 1998
42
Variance -
Favorable
Budget
Actual
(Unfavorable)
General government:
Legislative
$ 948,688
659,854
288,834
City manager
129,851
150,146
(20,295)
Economic development
679,350
663,730
15,620
Fiscal services
155,440
201,152
(45,712)
Central services
500,461
389,251
111,210
City clerk
186.029
165,256
20,773
Total general government
2.599,819
2.229,389
370,430
Public safety:
Police
2,714,377
2,605,741
108,636
Building and safety administration
139,378
128,932
10,446
Code compliance
307,043
262,141
44,902
Animal control
134,315
129,189
5,126
Building
240,403
237,598
2,805
Emergency services
13,800
7,343
6,457
Fire
19,000
8,931
10,069
Civic center building
728,232
719,648
8,584
Total public safety
4,296,5.48
4,499,523
197,025
Community services:
Senior center
214,650
189,591
25,059
Parks and recreation administration
328,324
250,935
77,389
Parks and recreation programs
62.300
5_3,876
8,424
Total community services
605.274
494,402
110,872
Planning and development:
Community development administration
198,674
122,063
76,611
Current planning
477,810
222,991
254,819
Total planning and development
676,484
345.054
331,430
Public works:
Public works administration
112,112
125,126
(13,014)
Development and traffic
413,045
497,549
(84,504)
Maintenance/operations - St.
441,654
229,881
211,773
Interf ind reimbursements
246,609
255,682
(9,073)
Capital projects administration
(70,393)
51,134
121 527)
Total public works
1,143.027
1,159,3721(
6,345)
Total expenditures
12MIJ52
&327 ,740
993,412
42
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43
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44
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.
Comm_ unity 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.
Intermodal Surface Transportation Efficiency Act (.ISTEA`? Fund - To account for revenues from
ISTEA 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 Outility 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 (LLEBQ) 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.
RedevelODment Agency, Low and Moderate Income Housigg, P.A. No. 1 and No. 2 Funds - To
account for the required 20%n set aside of property tax increments that is legally restricted for
increasing or improving housing for low and moderate income households.
Redevelopment Agency, _Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds - To
account for bond proceeds and expenditures of bond -financed low and moderate income housing
programs.
45
CITY OF LA QUINTA
Special Revenue Funds
Combining Balance Sheet
June 30, 1998
Community Lighting
State Service Federal and Village
Gas Tax Pr_ olects Assistance ISTEA Landscape SLEBG Ouirriby Parking
Assets
Cash and investments $86,697 5,810
Cash with fiscal agent - -
Accounts receivable - -
Interest receivable - -
Notes receivable - -
Due from other funds - -
Due from other governments - -
Advances to other funds - -
Property held for resale - -
Total assets 586.697 5,810
Liabilities and Fund Balances
Liabilities:
Accounts payable $
Accrued expenses - -
Deposits payable - -
Contracts payable -
Due to other funds -
Total liabilities
Fund balances:
Reserved for:
Bond projects - -
Advances to other funds -
Notes receivable - -
Property held for resale - -
Unreserved:
Designated for operations/
projects/transfers 86,697 5,810
Undesignated -
Total fund balances 86,697 5,810
Total liabilities and
fund balances JE6.697 5,810
- - 270,128
12,810
182,436
27,115
270,128
12,810
182,436
27,115
34,840 - -
34,840 - - -
- - 235,288
12,810
182,436
27,115
- 235,288
12,810
182,436
27,115
46
270.128 12,810 182,436 27,115
15,106 4,185 5,657 30,040 54,988 10,929
- - - _ - 34,000
14,426 - - - 49,266 49,238
- - - - - - - 30,008
- - - 109,691 115,203 224,894 -
29,532 4,185 115,348 145,243 329,148 124,175
- - 5,375,024 2,754,807 8,129,831 10,809,165
- - 511,903 39,135 - - 551,038 551,038
2,420,750 - - - 2,420,750 2,452,283
- - - - - - - - 86,320
68,369 10,218 - 3,085,585 1,699,642 - 425,945 5,839,915 6,502,275
- - - - (80,722 - (80,722) -
68,369 10,218 - 6,018,238 1,738,777 5,294,302 3,180,752 16,860,812 20,401081
68,369 10,218 6,047,770 1,742,962 5 409,650 3,325,995 17.I89,960 20,525,256
47
Low/
Low/
Moderate
Moderate
Low/
Low/
Urban Income
Income
Moderate
Moderate
South Coast
Forestry Housing-
Housing-
Bond-
Bond-
Totals
Air Ouality LLEBG
Grant PA No. 1
PA No. 2
PA No. 1
PA No. 2
1998
1997
62,919 10,218
- 3,029,624
1,703,827
-
571,188
5,962,772
6,363,933
- -
- -
-
5,375,024
2,754,807
8,129,831
10,809,165
- -
- 23,301
-
-
-
23,301
237,189
- -
- -
-
34,626
-
34,626
24,091
- -
- 2,420,750
-
-
-
2,420,750
2,452,283
- -
- 62,192
-
-
-
62,192
-
5,450 -
- -
-
-
-
5,450
1,237
- -
- 511,903
39,135
-
-
551,038
551,038
- -
-
-
-
86,320
68,369 10,218
- 6,047,770
1.1742,962
5 40650
3,325,995
17,I89,960
20,525,256
15,106 4,185 5,657 30,040 54,988 10,929
- - - _ - 34,000
14,426 - - - 49,266 49,238
- - - - - - - 30,008
- - - 109,691 115,203 224,894 -
29,532 4,185 115,348 145,243 329,148 124,175
- - 5,375,024 2,754,807 8,129,831 10,809,165
- - 511,903 39,135 - - 551,038 551,038
2,420,750 - - - 2,420,750 2,452,283
- - - - - - - - 86,320
68,369 10,218 - 3,085,585 1,699,642 - 425,945 5,839,915 6,502,275
- - - - (80,722 - (80,722) -
68,369 10,218 - 6,018,238 1,738,777 5,294,302 3,180,752 16,860,812 20,401081
68,369 10,218 6,047,770 1,742,962 5 409,650 3,325,995 17.I89,960 20,525,256
47
CITY OF LA QUINTA
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1998
Community Lighting
State Service Federal and Village
Gas Tax Protects Assistance ISTEA Landscape SLEBG Quimby Parking
Revenues:
Taxes
$ -
-
- _
-
-
-
-
Developer fees
-
-
- -
-
-
167,586
-
Intergovernmental
354,644
-
334,732 410,034
-
43,636
-
-
Investment income
3,080
25,100
- 5,501
6,370
610
3,352
1,098
Special assessments
-
-
- -
809,041
-
-
-
Rental income
-
-
- -
-
-
-
-
Loss on sale of land
-
-
- -
-
-
-
Miscellaneous
-
- -
-
-
-
Total revenues
357,724
25,100
334,732 415,535
815,411
44,246
170,938
1,098
Expenditures:
Current:
Public safety
-
-
- -
-
33,388
-
-
Planning and
development
-
-
- -
_
-
Public works
336,100
-
- -
852,222
-
-
-
Total expenditures
336,100
-
- -
852,222
33,388
-
-
Excess (deficiency) of
revenues over (under)
expenditures
21,624
25,100
334,732 415,535
(36,811
10.858
170.918
1,098
Other financing sources (uses):
Operating transfers in
-
-
- -
-
-
-
-
Operating transfers out-
563 383
Q4,732) (415,535
-
-
-
-
Total other financing
sources (uses)
-
(563,383
(334,732 (415,535
-
-
-
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses 21,624
(538,283)
- -
(36,811)
10,858
170,938
1,098
Fund balances at beginning
of year
65,073
544.093
- -
272,099
1,952
11,498
26,017
Fund balances at end of year
$ 86,697
5,810
235,288
12,810
182,436
27,115
48
1.188.322 1.207.930
1,795,539 247,158 456,081 231,095 3,951,583 . 3,377,437
27,261 29,704 3,944 1,126,293
630,161
(39,556 (129,085
Low/
Low/
- - - 212,193
265,517
- 2,802,667
3,280,377
1,587,792
- (39,020 (2,244 (1,742,501)
(339,341
Moderate
Moderate
Low/
Low/
(73,824
(3,016,305) (155,014
L6,132,065
(2,679,776)
Urban
Income
Income
Moderate
Moderate
South Coast
Forestry
Housing-
Housing-
Bond-
Bond-
Totals
Air Ouality
LLEBG
Grant
PA No. 1
PA No. 2
PA No. 1
PA No. 2
1998
1997
-
-
-
2,432,379
821,468
-
-
3,253,847
2,971,135
-
-
-
11,127
-
-
-
178,713
2,137,288
25,055
28,474
3,944
-
-
-
-
1,200,519
707,627
2,206
1,230
-
105,590
55,851
416,525
102,010
728,523
1,325,902
-
-
-
-
-
-
-
809,041
994,110
-
-
-
395,414
-
-
-
395,414
715,203
-
-
-
(22,678)
-
-
-
(22,678)
-
-
-
-
-
-
-
-
54,611
27,261
29,704
3,944
2 92-32
877,319
416,525
102,010
6,543,379
8,905,876
-
-
-
-
-
-
-
33,388
41,219
-
-
-
1,795,539
247,158
456,081
231,095
2,729,873
2,128,288
1.188.322 1.207.930
1,795,539 247,158 456,081 231,095 3,951,583 . 3,377,437
27,261 29,704 3,944 1,126,293
630,161
(39,556 (129,085
2,591,796
5,528,439
- - - 212,193
265,517
- 2,802,667
3,280,377
1,587,792
- (39,020 (2,244 (1,742,501)
(339,341
(3,016,305 (2,957,681
9,412 442
(4,267568
- (22,020) (2L44) (1,530,308)
(73,824
(3,016,305) (155,014
L6,132,065
(2,679,776)
27,261 (9,316) - (404,015) 556,337 (3,055,861) (284,099) (3,540,269) 2,848,663
41,108 19,534 - 6,422,253 1,182,440 8,350,163 3,464,851 20,401,081 17,552,418
68,369 10,218 - 6,018,238 1,738,777 5,294,302 3180.75216,860,812 20,401,08I
49
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, 1998
50
Variance -
Favorable
1997
BudF,et
Actual
(Unfavorable)
Actual
Revenues:
Intergovernmental
$334,200
354,644
20,444
334,527
Investment income
1,900
1080
11180
3,358
Total revenues
336,100
357,724
21,624
337,885
Expenditures:
Current:
Public works
336,100
336,100
-
306.942
Total expenditures
336,100
336.100
-
306,942
Excess (deficiency) of revenues
over (under) expenditures
-
21,624
21,624
30,943
Fund balances at beginning of year
65,073
65,073
-
34,130
Fund balances at end of year
$ 65,073
86,697
21,624
65,073
50
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, 1998
Revenues:
Investment income
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 (deficit) at beginning
of year
Fund balances (deficit) at end of year
Variance -
Favorable
1997
Budget Actual Unfavorable)
Actual
20,500 25,100 4,600
33,254
20,500 25,100 4,600
33,254
20,500 25,100 4,600
(569,192) (2§2,383) 5,809
56919256( 3,383)
(548,692) (538,283)
544,093 544,093
4 599 5,810
51
5,809
10,409
10,409
33.254
990)
(90,69Q)
(57,436)
601,529
544,093
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, 1998
Revenues:
Intergovernmental
Investment income
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
52
- - (64,976)
64,976
Variance -
Favorable
1997
Budget
Actual
(Unfavorable)
Actual
$338,532
334,732
(3,800)
30,000
-
-
-
212
338,532
334,732
(3,800)
30,212
338,532
334,732
(3800)
30,212
33( 8.532)
(334732)
3,800
(95388)
33( 8.532)
(334,732)
3,80095,188)
52
- - (64,976)
64,976
CITY OF LA QUINTA
Special Revenue Funds
ISTEA Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1998
Revenues:
Intergovernmental
Investment income
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
410,000 415,535 5,535
41{ 0.000) (415,535) (5,535)
410 000) (415,535) (5,535)
53
Variance -
Favorable 1997
Biidi-,et Actual
L nfayorable) Actual
$410,000 410,034
34 -
- 5,501
5,501 -
4I0,000 415,535
5,535 -
410,000 415,535 5,535
41{ 0.000) (415,535) (5,535)
410 000) (415,535) (5,535)
53
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, 1998
Expenditures:
Current:
Public works 908,307 852,222 56,085 900,988
Total expenditures 908,307 852,222 56,085 900,988
Excess (deficiency) of revenues
over (under) expenditures1� 41,977)3( 6,811) 105,166 97,608
Other financing sources (uses):
Operating transfers out14�
Variance -
(533)
Total other financing sources
Favorable
1997
Budge Actual
(Unfavorable)
Actual
Revenues:
Investment income $ - 6,370
6,370
4,486
Special assessments 766,330 809,041
42.711
994,110
Total revenues 766,330 815,411
49.081
998.596
Expenditures:
Current:
Public works 908,307 852,222 56,085 900,988
Total expenditures 908,307 852,222 56,085 900,988
Excess (deficiency) of revenues
over (under) expenditures1� 41,977)3( 6,811) 105,166 97,608
Other financing sources (uses):
Operating transfers out14�
9,001) - 149,001
(533)
Total other financing sources
(uses)if
49,OD1) - 149,001
(533)
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
(290,978) (36,811) 254,167
97,075
Fund balances (deficit) at beginning of year
272,099 272,099 -
175,024
Fund balances (deficit) at end of year
18879 235.288 254,167
272,099
54
CITY OF LA QUINTA
Special Revenue Funds
SLEBG
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1998
55
Variance -
Favorable
1997
Budget
Actual
&Jnfavorable)
Actual
Revenues:
Intergovernmental
$43,000
43,636
636
41,992
Investment income
-
610
610
_ 1,179
Total revenues
43,000
44,246
1,246
43,171
Expenditures:
Current:
Public safety
43,000
33,388
9,612
41,219
Total expenditures
43,000
33,388
9,612
41,219
Excess (deficiency) of revenues
over (under) expenditures
-
10,858
10,858
1,952
Fund balances at beginning of year
1,952
1.952
-
-
Fund balances at end of year
1,952
12,810
10,858
1,952
55
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, 1998
Revenues:
Developer fees
Investment income
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
Variance -
Favorable
1997
Budget Actual (Unfavorable)
Actual
$20,000 167,586 147,586
17,941
4,300 3,352 (948)
2,673
24,300 170,938 146,638 20,614
24,300 170,938 146,638 20,614
- - - (3.779)
-CL779)
24,300 170,939 146,638 16,835
11,498 11,498 - (5,337)
$35,798 182,436 146,638 11,498
56
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, 1998
57
Variance -
Favorable
1997
Midget
Actual
(Unfavorable)
Actual
Revenues:
Investment income
800
1,098
298
1,574
Total revenues
800
1,098
298
1,574
Excess (deficiency) of revenues
over (under) expenditures
800
1,098
298
1,574
Fund balances at beginning of year
26,017
26,017
-
24,443
Fund balances at end of year
$26,817
27,115
298
26,017
57
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, 1998
Revenues:
Intergovernmental
Investment income
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
- 4,892
- - 4,892
20,000 27,261 7,261 16,510
41,108 41,108 - 24,598
$61,108 68,369 7,261 41,108
58
Variance -
Favorable
1997
Budget
Actual
(Unfavorable)
Actual
$18,900
25,055
6,155
18,998
1,100
2,206
1,106
2,404
20,000
27,261
7,261
21,402
- 4,892
- - 4,892
20,000 27,261 7,261 16,510
41,108 41,108 - 24,598
$61,108 68,369 7,261 41,108
58
CITY OF LA QUINTA
Special Revenue Funds
LLEBG
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1998
Revenues:
Intergovernmental
Investment income
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
- (9,316) (9,316) 19,534
19,534 19,534 - -
$19,534 10,218 19,316) 19,534
59
Variance -
Favorable
1997
Budget Actual
(Unfavorable)
Actual
$ - 28,474
28,474
26,411
- X230
1,230
1,172
- 29,704
29,704
27,583
- 29,704
29,704
27,583
- Q9)
(39,020)
(8,049)
- (22.020
3(_9_ .020)
(8.049)
- (9,316) (9,316) 19,534
19,534 19,534 - -
$19,534 10,218 19,316) 19,534
59
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, 1998
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
Variance -
Favorable
1997
B z_ d p et Actual (Unfavorable'
Actual
5182 3,944 (1,238)
255,699
5,182 3,944 (1238)
255,699
5,182 3,944
5182) (3,944)
5 182) (3 944)
60
(1,238) 255,699
1,23825( 5,699)
1,238 (255,699)
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, 1998
Revenues:
Taxes
Developer Fees
Investment income
Rental income
Loss on sale of land
Total revenues
Budget Actual
$2,417,637 2,432,379
- 11,127
352,400 105,590
341,000 395,414
- (22,678)
3,111,037 2,921,832,
Expenditures:
Current:
Planning and development 1,897,388 1,795,539
Total expenditures 1,897,388 1,795,539
Excess (deficiency) of revenues
over (under) expenditures 213,649 1,126,293
Other financing sources (uses):
Operating transfers in - 212,193
Operating transfers out -U,142,5 01(1,742,501)
Total other financing sources
(uses) 1 742 5111) (1,530,308)
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses (528,852) (404,015)
6.422 253 6,422,253
$5.893,401 6,018,238
Fund balances at beginning of year
Fund balances at end of year
61
Variance -
Favorable
(Unfavorable)
14,742
11,127
(246,810)
54,414
-(22--,678)
(18.9205)
101,849
101,849
1997
Actual
2,268,971
2,119,347
573,896
436,436
5,398,650
962,900
962,900
(87,356) 4,435,750
212,193 102,052
(1,567,542)
212,193 (,465490)
124,837 2,970,260
3,451,993
124,837 6,422,253
CITY OF LA QUINTA
Special OF.
Funds
Low/Moderate Income Housing Project Area No. 2 Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1998
Variance -
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes $
809,400
821,468
12,068
Investment income
25.150
55,851
_30,701
Total revenues
834,550
877,319
42,769
Expenditures:
financing uses (47,230)
556,337 603,567
Current:
Planning and development
542,440
247,158
295,282
Total expenditures
542,440
247,158
295,282
Excess (deficiency) of revenues
over (under) expenditures
291110
630,161
338,051
Other financing sources (uses):
Operating transfers in -
265,517 2.65,517
Operating transfers out3_ ( 39,340)
339 341) (1)
Total other financing sources
(uses)339.340)
7( 3,824) 265,516
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses (47,230)
556,337 603,567
Fund balances at beginning of year
Fund balances at end of year
1,182,440 1,182,440
`1 135 210 1,738,777
62
603,567
1997
Actual
702,164
68,802
770,966
312,702
312,702
458,264
(273,700)
(273,700
)
184,564
997,876
1,182,440
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, 1998
63
Variance -
Favorable
1997
B� ti get
Actual
Unfavorable
Actual
Revenues:
Investment income
$ 180,000
416,525
236,525
506,845
Rental income
-
-
-
278,767
Miscellaneous
-
-
-
54,611
Total revenues
180,000,
416,525
236,525
_ 840.223
Expenditures:
Current:
Planning and development
4.731,540
456,081
4,275,459
676,251
Total expenditures
_4.731,540
45 _ 6,081
4,275,459
676,251
Excess (deficiency) of
revenues over (under)
expenditures
(4,551,54
(39,55-6)
4,511,984
163,972
Other financing sources (uses):
Operating transfers in
-
-
-
43,313
Operating transfers out
(2,822,336)
(3,016.305)
-U23 ,969)
1544479
Total other financing
sources (uses)2
8�2_)
(3,016,305)
19(3969)
1 50(, 1,166)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
(7,373,876)
(3,055,861)
4,318,015
(1,337,194)
Fund balances at beginning of year
8,350,163
8,350,163
-
9,687,357
Fund balances at end of year
$ 976,287
5,294,302
4,318,015
8,350,163
_
63
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, 1998
Revenues:
Investment income
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
Variance -
Favorable
Budget Actual (Unfavorable)
$ 42.204 102,010 59,810
42,200 102,010 59,810
210,812
231,0952T�,
0 283)
210.812
231,09583)
1997
Actual
126,047
126,047
171,543
171,543
l68 612) 129 085 39,527 (45,496)
2,822,336 2,802,667 (19,669)
(4,561,832) (2.957,681) 1,604,151
-ftJ39,496) 155 014 1,584,482
(1,908,108) (284,099) 1,624,009
3,464,851 3,464,851 -
$1,556,743 3,180,752, 1,624,009
64
1,442,427
(427,209)
1,014,518
969,022
2,49M29
3,464,851
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.
65
CITY OF LA QUINTA
Debt Service Funds
Combining Balance Sheet
June 30, 1998
66
Financing
Redevelopment
Redevelopment
Totals
Authority
Aizency-PA No. f
Agency -PA No. 2
1998
1997
Assets
Cash and investments
$ -
3,389,702
1,882,870
5,272,572
4,680,466
Cash with fiscal agent
-
52,385
21,850
74,235
524,613
Accounts receivable
-
11
-
11
-
Prepaid expenses
-
-
-
-
276,546
Due from other governments
-
-
-
4,950
Total assets
$ -
3,442,098
1,904320
5,346,8.18
5,486,575
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ -
4,340
-
4,340
-
Accrued expenses
-
149,224
355,507
504,731
914,073
Due to other funds
-
-
-
-
1,470
Advances from other funds
-
511,903
39,135
551,038
551,038
Total liabilities
665,467
394,642
1,060,109
1,466,581
Fund balances:
Reserved for:
Bond reserve
requirement
-
-
-
-
512,231
Prepaid expenses
-
-
-
-
276,546
Designated for
debt service
-
2,776,631
1,510,078
4,286,709
3,232,687
Unreserved:
Undesignated
-
-
-
-
1470
Total fund balances
2,776,631
1,510,078
4,286,709
4,019,994
Total liabilities
and fund balances
$ -
3,442,098
1,904,720
5,346,818
5,486,575
66
CITY OF LA QUINTA
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1998
Revenues:
Taxes
Intergovernmental
Investment income
Rental income
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 refunding bonds
(net of issuance costs)
Payments to refunded
bond escrow agent
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
Financing
Redevelopment
Redevelopment
Totals
Authority
Agency -PA No. 1
Agency -PA No. 2
1998
1997
1,510,078 -_
4,286,709
$ -
9,729,515
3,285,872
13,015,387
11,884,541
-
-
-
-
4,614
-
29,829
80,789
110,618
168,191
734,623
-
-
734,623
584,468
734,623
9,759,344
3,366,661
13,860,628
12,64I,814
6,427
152,565
50,596
249,588
151,741
285,000
1,482,979
192,021
1,960,000
1,465,000
449,623
3,496,109
1,088,437
5,034,169
4,888,090
-
6,2259
3,003,961
9,255,220,
7 5_ . ,055,062
741,050
11,382,912
4,335,015
16,458,977
14,009,89.3
6427
I 623 56896(
8.354)
12,598,349)
(1,368,079}
71897
1,796,304
1,161,578
2,965,779
1,772,776
-
(368,565)
(542,156)
(910,721)
(739,704)
-
-
-
-
8,500,101
-
-
-
-
(8,488,199)
-
364,985
445,021
810,006
604,895
7,897
1,792,724
1,064,443
2,865,064
1,649,869
1,470 169,156
96,089
266,715
281,790
1470 2,607,475
1,413,989
4,019,994
3,738,204
2,776,631
1,510,078 -_
4,286,709
4,019,994
67
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, 1998
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
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
5,600 6,427 (827) 4,615
285,000 285,000 - 170,000
449,623 449,623 - 437,950
740,223 741,050 (827) 612,565
(7,023) -(k,427) 596 12,726
uses (7,023)
Fund balances (deficit) at beginning of year __IL470
Fund balances (deficit) at end of year 18,493)
68
7,897 7,897 -
- - (739,704)
- - 8,500,101
7,897 7,897 727 802
1,470 8,493 (715,076)
(1,470) - 713,606
- 8,493 --(L,470)
Variance -
Favorable
1997
Bu_ dg t
Actual(Unfavorable)
Actual
Revenues:
Intergovernmental
$ -
- -
4,614
Investment income
30,000
- (30,000)
36,209
Rental income
697,600
734,623 37,023
584,468
Miscellaneous
5,600
- (5,600)
-
Total revenues
733,200
734,623 1,423
625,291
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
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
5,600 6,427 (827) 4,615
285,000 285,000 - 170,000
449,623 449,623 - 437,950
740,223 741,050 (827) 612,565
(7,023) -(k,427) 596 12,726
uses (7,023)
Fund balances (deficit) at beginning of year __IL470
Fund balances (deficit) at end of year 18,493)
68
7,897 7,897 -
- - (739,704)
- - 8,500,101
7,897 7,897 727 802
1,470 8,493 (715,076)
(1,470) - 713,606
- 8,493 --(L,470)
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, 1998
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
_1,894,474 1,792,724 101.750 1,733,120
195,796
169,156
26,640 509,761
Variance -
2,607,475
- 2,097,714
$ 2,803,271
2,776,631
Favorable
1997
11LIC[get
Actual
(Unfavorable) Actual
Revenues:
Taxes
$ 9,670,547
9,729,515
58,968
9,075,885
Investment income
-
29,829
29,829
54,389
Total revenues
9,670,547
9,759,344
88,797
9,130,274
Expenditures:
Current:
Planning and development
189,717
152,565
37,152
109,725
Debt service:
Principal
1,482,979
1,482,979
-
1,175,000
Interest
3,493,608
3,496,109
(2,501)
3,427,787
Payments under pass-through
obligations
6,202,921
6,251,2594-
( 8,338)
5,641,121
Total expenditures
11,369,225
11,382,912
(13.687)
10,353,633
Excess (deficiency) of revenues
over (under) expenditures
(1,698,678)
4`1,623,558)
75,110
(1,223,359)
Other financing sources (uses):
Operating transfers in
1,794,859
1,796,304
1,445
1,499,076
Operating transfers out
(265,370)
(368,565)
(103,195)
-
Proceeds of advances from City
364,985
364.985
-
234,044
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
_1,894,474 1,792,724 101.750 1,733,120
195,796
169,156
26,640 509,761
2,607,,475
2,607,475
- 2,097,714
$ 2,803,271
2,776,631
26,640 2,607,475
69
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, 1998
Revenues:
Taxes
Investment income
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
Variance -
Favorable 1997
Budget Actual (Unfavorable) Actual
$3,237,600 3,285,872 48,272 2,808,656
80,789 _ 80,789 77,593
3,237,600 3 36611 129,061 2,886,249
58,788
50,596
8,192
37,401
192,021
192,021
-
120,000
1,090,938
1,088,437
2,501
1,022,353
2 2_ �23_3,742
3,003,9617.
� 70,219)
1,863,941
3,575,489 „
4,335,015
7759)
3,043.695
3.695
337,889) 968,3546( 30465) 15 7,446)
1,161,190 1,161,578 388 273,700
(1,545,225) (542,156) 1,003,069 -
445,021 445,021 - 370,851
60� 1,064,443 1,003,457 644,551
(276,903) 96,089 372,992 487,105
1,413,989 1,413,989 - 926,884
$1137,086 1,510078 372,992 1413989
70
CAPITAL PRa3ECTS 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 Authorit 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.
71
CITY OF LA QUINTA
Capital Projects Funds
Combining Balance Sheet
June 30, 1998
Assets
Cash and investments
Cash with fiscal agent
Accounts receivable
Interest receivable
Notes receivable
Due from other funds
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deposits payable
Retentions payable
Due to other funds
Total liabilities
Fund balances:
Reserved for:
Bond projects
Notes receivable
Unreserved:
Designated for operations/projects
Undesignated
Total fund balances
Total liabilities and fund
balances
Financing
Capital Authority
Infrastructure Ini rovement Pryiec#s
$5,732,771 677,400 -
- 601,119
306,361 -
$5,732,771 983 761 601,119
$ - 350,594 -
- 373,635 -
- 259,532 -
92,029 - 11,815
92,029 983,761 11,815
- - 601,119
5,640,742 - -
Y -1� 1,815)
5,640.742 _ - 589,304
5 732 771 983,761 601,119
72
Redevelopment
Redevelopment
Totals
Agency -PA No. 1
Agcy -PA No. 2
1998
1997
8,045
1,436,781
7,854,997
5,527,892
7,1.70,042
708,782
8,479,943
1,467,662
81,258
81,258
498,468
142,956
-
142,956
8,426
-
108,217
108,217
99,791
-
-
306,361
1,470
7,321,043
2,335,038
16,973,732
709
7,603J-
15,367
13,199
379,160
351,459
-
-
373,635
136,926
-
-
259,532
17,390
-
-
103,844
17,487
15,367
13,199
1,116,171
523,262
7,170,042
708,782
8,479,943
1,467,662
-
108,217
108,217
99,791
135,634
1,504,840
7,281,216
5,512,994
-
-(11,815)
-
7,305,676
2321,839
15,857,561
7,080,447
7,321,043
2,335,038
16,973332
7,603,709
73
CITY OF LA QUINTA
Capital Projects Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year ended June 30, 1998
Capital Financing
Infrastructure Improvement Authority
Revenues:
Developer fees
$2,429,742
532,050
-
Intergovernmental
-
1,167,522
-
Investment income
224,923
-
27,277
Litigation settlement proceeds
-
-
-
Total revenues
2,654,665
1,699,572
27,277
Expenditures:
Current:
Planning and development
-
-
-
Capital projects
220,379
7,368,554
-
Debt service:
Interest
-
-
-
Total expenditures
220,379
7 368 5-54
-
Excess (deficiency) of revenues
over (under) expenditures
2,434,2865
6G(. 8,982}
27,277
Other financing sources (uses):
Operating transfers in
-
5,668,982
-
Operating transfers out
(1,341,883)
-
(176,207)
Proceeds of bonds (net of
issuance costs)
Payments to refunded bond
escrow agent
-
-
-
Proceeds of advances from City
W
r
-
Total other financing sources
(uses)
(1,341.883)
5,-668,982
176.207)
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
1,092,403
-
(148,930)
Fund balances at beginning of year
4,548,339
-
738,234
Fund balances at end of year
15,640,742
-
589,304
74
Redevelopment
Redevelopment
8,777,114
Totals
Agency -PA No. 1
Agency -PA No. 2
1998
1997
7,305,676
-
2,961,792
1,752,975
1,167,522
656,237
42,161
246,276
540,637
405,151
204
-
204
29,991
42,365
246.276
4,670,155
2 844,354
370,024
281,808
651,832
1,171,440
-
-
7,588,933
5,318,680
-
-
-
33,410
281.808
8,240725
6,523,530
(327.659
35,532)
(3,570,610)
176)
(L6L9.176)
368,565
542,156
6,579,703
5,059,925
(52,358)
(796,280)
(2,366,728)
(3,424,016)
15,134,466
6,431,222
21,565,688
(7,822,592)
(5,608,347)
(13,430,939)
-
-
-
-
84� 1 ,320
7,628,081
568,751
12,347,724
2.477,229
7,300,422
533,219
8,777,114
(1,201,947)
5,254
1,788.620
7.080,447
8 28394
7,305,676
2 32� 1�839
15,857561
7,180,447
75
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, 1998
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Capital projects
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
1,423,620 2,434,286 1.010,666 1,499,824
- 64,975
(3,23L069) 069) 1.341 883 1,889,156 1,222,678)
(3,231,069) (1141,883) 1,889,186 (1 157 703
(1,807,449)
1,092,403
Variance -
4,548,339
$2,740,890
5,640,742
Favorable
1997
Budget
Actual
(Unfavorable)
Actual
$1,500,000
2,429,742
929,742
1,552,373
144,000
224,923
80,923
253,164
1,644,000
2,654,665
1,010,665
1.805,537
220.380
220,379
1
305,713
220.380
220.379
1
305.713
1,423,620 2,434,286 1.010,666 1,499,824
- 64,975
(3,23L069) 069) 1.341 883 1,889,156 1,222,678)
(3,231,069) (1141,883) 1,889,186 (1 157 703
(1,807,449)
1,092,403
4,548,339
4,548,339
$2,740,890
5,640,742
76
2,899,852 342,121
- 4,206,218
2,899,852 4,548,339
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, 1998
Revenues:
Developer fees
Intergovernmental
Total revenues
Expenditures:
Capital projects
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 at beginning of year
Fund balances at end of year
(10,655,935) 5 668 982 4 986_,9534 2( 5� 6 7, 16)
10,655,935 5,668982 4 986 953 4,256,710
1010 6SS 5 ,668,982 _ 4 986 953 4,256,7.16
77
Variance -
Favorable
1997
Budget
Actual
nfavorable)
Actual
$ 752,314
532,050
(220,264)
100,874
1,996,213
1,167,522
(828,691)
655,377
2,748,527
1,699.572
(1,048,55)
756,251
_13,404,462
7,368,554
6,035,908
5,012,967
1313 4�04,462
7,368,554
6,035,908
5 O1_, _ 2_ 9G7
(10,655,935) 5 668 982 4 986_,9534 2( 5� 6 7, 16)
10,655,935 5,668982 4 986 953 4,256,710
1010 6SS 5 ,668,982 _ 4 986 953 4,256,7.16
77
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, 1998
78
Variance -
Favorable
1997
Budget
Actual
(Unfavorable)
Actual
Revenues:
Investment income
$ —
27,277
27,277
-
Total revenues
-
27,277
27,277
-
Excess (deficiency) of revenues
over (under) expenditures
-
27,277
27,277
-
Other financing sources (uses):
Operating transfers in
-
-
-
738,234
Operating transfers out
(745,209)
(176,207)
569,002
-
Total other financing sources
(uses)
_-124j,209)
(176,207)
569,002
738,234
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
(745,209)
(148,930)
596,279
738,234
Fund balances (deficit) at beginning of year
738,234
738,234
-
-
Fund balances (deficit) at end of year
1-16,.97504
596,279
738,234
78
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, 1998
Revenues:
Investment income
Litigation settlement proceeds
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Proceeds of bonds (net of issuance costs)
Payments to refunded bond escrow agent
Proceeds of advances from City
362,700 370,024 (7,324) 812,121
- - - 33,410
362,700 370,024 —(7_,324) 845,531
(309,892) 327,659) (17.767(U5,540)
265,370 368,565 103,195
(126,068) (52,358) 73,710
15,134,466 15,134,466 -
(7,822,592) (7,822,592) -
Total other financing sources (uses) 7,451,176 7,628,081
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses 7,141,284 7,300,422
Fund balances (deficit) at beginning of year 5,254,. 5,254
Fund balances at end of year $ 7,146,538 7,305,676
79
176,905
159,138
159,138
841,320
841,320
25,780
(20,526)
5,254
Variance -
Favorable
1997
Budge Actual
(Unfavorable)
Actual
$ 52,808 42,161
(10,647)
-
- 204
204
29,991
52,808 42,365
(10,443)
29,991
362,700 370,024 (7,324) 812,121
- - - 33,410
362,700 370,024 —(7_,324) 845,531
(309,892) 327,659) (17.767(U5,540)
265,370 368,565 103,195
(126,068) (52,358) 73,710
15,134,466 15,134,466 -
(7,822,592) (7,822,592) -
Total other financing sources (uses) 7,451,176 7,628,081
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses 7,141,284 7,300,422
Fund balances (deficit) at beginning of year 5,254,. 5,254
Fund balances at end of year $ 7,146,538 7,305,676
79
176,905
159,138
159,138
841,320
841,320
25,780
(20,526)
5,254
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, 1998
Revenues:
Developer fees
Intergovernmental
Investment income
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
Proceeds of bonds (net of issuance
cost)
Payments to refunded bond escrow
agent
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
Variance -
568,751
Favorable
1997
Budget Actual (Unfavorable)
Actual
$ - - -
99,728
- - -
860
48,400 246,276 197,876
151.987
48,400 246,276 197,876
252,575
2,011,937 281,808 1,730,129 359,319
2,011,937 281,808 1,730,129 359,319
(1,963,537) 35 532 1 ,9280
05 (106,744)
1,545,225 542,156 (1,003,069) -
(950,820) (796,280) 154,540 (2,201,338)
6,431,222 6,431,222 - -
{5,608.347) (5 60, 8,347) -
1,417,280
568,751
(848.529 � 2a1 338)
(546,257)
533,219
1,079,476 (2,308,082)
1,788,620
1,788,620
- 4,096,702
IL242-,363 363
2,321,839
1,079,476 1,788,620
80
AGENCY FUNDS
Agency funds are used to account for assets held by the City as an agent for an individual,
private organizations and other governmental units. The agency funds and their purposes are as
follows:
The City of La Quinta has the following 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 Ouinta Public Safety Officer Fund - To account for contributions to be distributed to public
safety officers disabled or killed in the line of duty.
Deferred Compensation Fund - To account for deposits held by the City and monies 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.
81
CITY OF LA QUINTA
Agency Funds
Combining Balance Sheet
June 30, 1998
Liabilities
Liabilities:
Accounts payable $ 2,500 - - -
Deferred compensation payable - - - -
Deposits payable 391,034 4,168 - -
Due to bondholders - - - 171,523
Total liabilities jRa.,534 4,168 - 171,523
82
Public
Assessment
Arts in
Safety
Deferred District
Public Places
Officer
Compensation. No. 88-1
Assets
Cash and investments
$393,534
4,168
- 171,523
Accounts receivable
-
_
_ -
Total assets
$393,534
4,168
- 171,523
Liabilities
Liabilities:
Accounts payable $ 2,500 - - -
Deferred compensation payable - - - -
Deposits payable 391,034 4,168 - -
Due to bondholders - - - 171,523
Total liabilities jRa.,534 4,168 - 171,523
82
Assessment
Assessment
Assessment
Assessment
District
District
District
District
Totals
No. 89-2
No. 90-1
No. 91-1
No. 92-1
1998 1997
201,485 ,
232,727
438,151
337,357
1,778,945 2,434,724
266
-
-
-
266 -
201,751
232,727
438,151
337,357
1,779,211 2,434,724
- - - 2,500 -
- - - - 751,836
- - - - 395,202 289,856
291,751 232,727 438,151 337,357 1,381.549 1,393.032
201,751 232,727 438,151 337,357 1,779,211 2,434,724
83
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year ended June 30, 1998
Balance at Balance at
July 1, 1997 Additions Deletions Tune 30, 1998
ARTS IN PUBLIC PLACES
Assets
Cash and investments
$287,786
139,318
33,570
393,534
Total assets
287 786
139,318
33,570
393,534
Liabilities
Accounts payable
$ -
24,706
22,206
2,500
Deposits payable
287,786
164,914
61,666
391,034
$287,786
189,620
83,872
393,534
PUBLIC SAFETY OFFICER
Assets
Cash and investments
$ 2,070
2,098
-
4,168
Liabilities
Deposits payable
$ 2070,
2,098
-
4,168
DEFERRED COMPENSATION
Assets
Cash and investments
751 836
-
751,836
-
Liabilities
Deferred compensation payable
JZjL,836
-
751,836
-
84
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
ASSESSMENT DISTRICT NO. 88-1
Assets
Cash and investments
Total assets
Liabilities
Due to bondholders
ASSESSMENT DISTRICT NO. 89-2
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities
Due to bondholders
ASSESSMENT DISTRICT NO. 90-1
Assets
Cash and investments
Total assets
Liabilities
Due to bondholders
Balance at Balance at
July 1, 1997 Additions Deletions June 30, 1998
171 083
129,261
128,821
171,523
171 083
129,261
128 821
171,523
$171,083
129,261
128.821
171,523
$222,561 170,956 192,032 201,485
- 266 - 266
222 561 171,222 192,032 201,751
122L561 171,222 192,032 201,751
1212,467
168,175
174,915
232,727
$2397
168,175
174,915
232,727
239 467
168,175
174,915
232,727
85
(Continued)
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Assets
Cash and investments
Total assets
Liabilities
Due to bondholders
ASSESSMENT DISTRICT NO. 92-1
Assets
Cash and investments
Total assets
Liabilities
Due to bondholders
TOTALS -ALL AGENCY FUNDS
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Deferred compensation payable
Due to bondholders
Total liabilities
(Continued)
Balance at Balance at
July 1, 1997 Additions Deletions June 30, 1998
4Q 629
327.622
313,100
438,151
423 629
327,622
313,100
438,151
423,629
327,622
313,100
438,151
336292 229,478 228,413 337,357
336,292 229,478 228,413 337,357
336,292 229.478 228,413 337,357
$2,434,724 1,166,908 1,822,687 1,778,945
266 - 266
$2,434.724 1,167,174 1,822,687 1,779.211
$ - 24,706 22,206 2,500
289,856 167,012 61,666 395,202
751,836 - 751,836 -
1.393.032 1.025.758 1.037.281 1.381.509
$2,434,724 1,217,476 1,872,989 1,779,211
86
GENERAL FIXED ASSETS ACCOUNT GROUP
87
CITY OF LA QUINTA
Comparative Schedule of General Fixed Assets - By Source
June 30, 1998
General fixed assets:
1998 1997
Land
$13,280,910
13,280,910
Buildings
11,790,129
11,795,694
Leasehold improvements
201,070
201,070
Furniture and fixtures
1,014,292
948,514
Vehicles .
161,052
224,357
Total general fixed assets
$26,447,453
26,450,545
Investments in general fixed assets from:
General Fund
$15,008,708
15,011,800
Redevelopment Agency
11,438,745 __�
11,438,745
$26,447,453
26,450,545
88
CITY OF LA QUINTA
Schedule of General Fixed Assets - By Function and Activity
June 30, 1998
Function and Activit
General Government
Legislative
City Manager
Finance
City Clerk
Community Services
Building and Safety
Community Development
Public Works
Total
Furniture
Leasehold and
Land Buildin s Improvements Fixtures
$13,280,910 11,790,129 - -
$13,280910 11,790,129
89
- 20,484
- 147,896
- 108,351
- 187,183
201,070 91,204
- 127,979
106,567
224,628
201,070 1,014,292
Vehicles Total
25,071,039
20,484
147,896
108,351
187,183
- 292,274
161,052 289,031
- 106,567
- 224,628
161,052 26.447,453
CITY OF LA QUINTA
Schedule of Changes in General Fixed Assets - By Function and Activity
June 30, 1998
90
Transfer to
Beginning
Proprietary
Ending
Function and Activity
Balance
Additions
Retirements
Funds
Balance
General Government
$25,071,039
-
-
-
25,071,039
Legislative
17,057
3,427
-
-
20,484
City Manager
139,407
40,181
(31,692)
_
147,896
Finance
114,692
14,996
(21,337)
-
108,351
City Clerk
190,262
3,971
(7,050)
-
187,183
Community Services
293,150
8,891
(9,767)
-
292,274
Building and Safety
284,701
4,330
-
-
289,031
Community Development
97,258
40,968
(31,659)
-
106,567
Public Works
242.979
55,331
(1,376)
(72,306)
224,628
Totals
126,450,545
172,095lU(
2,881)
(72,306)
26,447,453
90
STATISTICAL SECTION
91
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
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
1998
$2,229,389
4,099,523
1,159,372
494,402
345,054
-
$8,327,740
(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
92
CITY OF LA QUINTA TABLE 2
General Fund Revenue by Source
Last Ten Fiscal Years
Fiscal Year
Licenses
Charges
Litigation
Ending
and
Inter-
for
Settlement
June 30
Taxes
Permits
Governmental
Services
Proceeds
Interest
Miscellaneous
Total
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
1998
6,764,355
1,144,562
1,110,553
1,228,269
281,382
1,164,145
114,969
$11,808,235
(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 Quints Audited Financial Statements
93
CITY OF LA QUINTA TABLE 3
Property Tax Levies and Collections
Last Eight 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 supplemental property taxes.
3. Detail prior to fiscal year 1991 not available.
Source: City of La Quinta and County of Riverside
94
Percent of
Fiscal Year
Total
Current
Percent
Delinquent
Total
Ending
Tax
Tax
of Levy
Tax
Collections
June 30
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%
1998
$886,175
980,838
110.7%
0
110.7%
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 supplemental property taxes.
3. Detail prior to fiscal year 1991 not available.
Source: City of La Quinta and County of Riverside
94
CITY OF LA QUINTA
Schedule of Net Taxable Value
Last Eight Fiscal Years
Fiscal Year
Less
Property
Assessed
Ending
Secured
Unsecured
Property
June 30
Property
Property
Value
1991
$1,278,307,230
7,156,844
1,285,464,074
1992
1,594,767,374
6,396,816
1,601,164,190
1993
1,773,323,102
6,943,559
1,780,266,661
1994
1,872,768,156
8,119,527
1,880,887,683
1995
1,927,834,908
22,822,285
1,950,657,193
1996
2,043,276,054
23,801,872
2,067,077,926
1997
2,164,204,951
22,511,720
2,186,716,671
1998
$2,305,593,987
18,844,880
2,324,438,867
Note: Detail prior to fiscal year 1991 not available
(1) Homeowner's exemption not available
Source: County of Riverside
95
Less
Less
Property
Homeowner's
Exemptions
Exemptions
3,474,595
(1)
3,605,829
(1)
3,814,434
(1)
3,946,378
18,901,202
4,357,954
20,518,400
6,936,774
22,399,068
6,919,376
22,407,418
9,676,787
24,877,018
TABLE 4
Net
Taxable
Value
1,281,989,479
1,597,558,361
1,776,452,227
1,858,040,103
1,925,780,839
2,037,742,084
2,157,389,877
2,289,885,062
CITY OF LA QUINTA
Property Tax Rates - Direct and Overlapping Governments
Last Five Fiscal Years (per $100 of Assessed Value)
Source: County of Riverside
96
TABLE 5
1997/98
1996/97
1995/96
1994/95
1993/94
General
1.00000
1.00000
1.00000
1.00000
1.00000
Desert Sands Unified
0.09750
0.09750
0.09750
0.09750
0.09750
College of the Desert
0.00000
0.00000
0.00000
0.00000
0.00000
Coachella Valley Water District
0.02080
0.02080
0.02080
0.02080
0.02080
Total Tax Rate
1.11830
1.11830
1.11830
1.11830
1.11830
Source: County of Riverside
96
TABLE 5
CITY OF LA QUINTA
Special Assessment Billings and Collections
Last Eight Fiscal Years
Year
Special
Special
Ratio of
Ended
Assessment
Assessment
Collections
June 30
Billings
Collections (1)
to Billings
1991
$355,924
335,177
94.1
1992
557,574
552,249
99.0
1993
559,029
548,291
98.1
1994
766,011
734,560
95.9
1995
836,502
737,700
88.2
1996
729,647
699,351
95.9
1997
791,012
757,256
95.7
1998
$791,012
761,109
96.2
(1) Includes Prepayments and Foreclosures
Source: Muni Financial Services
97
Source:
CITY OF LA QUINTA
Schedule of Direct and Overlapping Bonded Debt
June 30, 1998
Direct and Overlayyng Bonded Debt
Riverside County General Fund Obligations
Riverside County Board of Education Certificates of Participation
Desert Community College District Certificates of Participation
Desert Sands Unified School District Certificates of Participation
Desert Sands Unified School District Lease Tax Obligation
Coachella Valley County Water District, I.D. #71 Storm Water
Unit Certificates of Participation
Coachella Valley County Water District, I.D. #55
Coachella Valley County Water District, I.D. #58
Coachella Valey Unified School District
City of La Quinta Certificates of Participation
City of La Quinta 1915 Act Bonds
Total Direct and Overlapping Bonded Debt
TABLE 7
Percent
June 30, 1998
Applicable (1)
Bonded Debt
1.022
$5,901,318
1.022
202,633
3.866
93,403
9.176
2,478,983
9.176
7,995,457
6.410
990,025
69.767
8,281,343
1.939
175,867
4.827
482,700
100.000
8,505,000 (2)
100.000
4.525.000
$39,631,,729_ (3)
Based on 1996-97 ratios.
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.
98
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, 1998
$2,324.438.867
348,665,830
-0-
$348,665$830
0-$348 665830
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
99
TABLE 8
Fiscal Year
Ending
June 30
1992
1993
1994
1995
1996
1997
1998
Note:
Source:
CITY OF LA QUINTA
Revenue Bond Coverage
Local Agency Revenue Bonds (City Hall Project)
Last Seven Fiscal Years
Debt Service Requirements
Revenue Available
for Debt Service Principal Interest Total
$182,784 0 182,784
548,352
548,352
699,477
696,402
607,950
$734,623
0
0
155,000
160,000
170,000
285,000
548,352
548,352
544,477
536,402
437,950
449,623
182,784
548,352
548,352
699,477
696,402
607,950
734,623
TABLE 9
Coverage
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Revenue available consists of lease payments made by the City of La Quinta to the La Quints Financing
Authority.
City of La Quinta
100
CITY OF LA QUINTA TABLE 10
Demographic Statistics
Last Ten Fiscal Years
101
Total
City
Fiscal Year
Population
Riverside
Population
Ending
Square
Percent
County
Percent
June 30
Miles (1)
Population (2)_
Change
Population (2)
Of County
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%
1998
31.2
20,444
8.0%
1,441,237
1.4%
Source:
(1) City of La Quinta
(2) State of California Department of Finance
101
CITY OF LA QUINTA TABLE 11
Property Value, Construction Activity and Bank Deposits
Last Eight Fiscal Years
Fiscal Year
Units
Value
Ending
Property
38,320,527
June 30
Value (1)
Units
2,441,392
324
1991
$1,278,307,230
3
1992
1,594,767,374
12
1993
1,773,323,102
7
1994
1,872,768,156
13
1995
1,927,834,908
4
1996
2,043,276,054
8
1997
2,164,204,951
11
1998
$2,305,593,987
14
Commercial
Construction
Residential
Construction
Value
Units
Value
7,299,000
304
38,320,527
7,334,871
320
35,744,443
2,441,392
324
39,145,539
6,081,796
531
79,318,969
1,100,119
238
29,163,494
1,018,940
336
53,973,239
1,876,747
322
36,971,047
2,689,642
461
70,403,691
NOTE: Detail prior to fiscal year 1991 not available.
Bank deposit data not available for fiscal year 1998,
Sources:
(1) City of La Quinta, Schedule of Net Taxable Value
(2) Findley Reports on California Financial Institutions
102
Bank
Deposits (2)
54,645,000
54,871,000
55,332,000
57,282,000
62,692,000
63,453,000
73,638,000
n/a
Source:
Taxpayer
KSL 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 Corporation
M & H Realty Partnership
Washington Adams Partnership.
City of La Quinta
CITY OF LA QUINTA
Principal Taxpayers
June 30, 1998
103
Tyne of Activity
Hotel
Residences
Condominium
Vacant Land
Residential Land
Golf Courses
Residential/Vacant Land
Golf Course
Shopping Centers
Commercial
TABLE 12
Source:
CITY OF LA QUINTA TABLE 13
Major Employers
June 30, 1998
Employe
Employees
Activity
La Quinta Hotel and Golf Resort
1,500
Resort Hotel
PGA West
1,100
Golf Resort
Wal-Mart
250
Retailer
Albertson's
126
Groceries
Vons
103
Groceries
Ralph's
100
Groceries
City of La Quinta
70
Municipal Government
Simon Motors
65
Auto Dealer
Cliff House
65
Restaurant
Red Robin
50
Restaurant
City of La Quints
104
CITY OF LA QUINTA TABLE 14
Schedule of Insurance in Force
June 30, 1998
Company Name
Policy Number
Coverage
_ Limits
Term
Premium
Hartford
PEBAO7068
Employee Dishonesty,
$1,000,000
07/01/98 - 99
$2,500
Forgery, Computer Fraud
Reliance Insurance
NZB1500917
All Risk Property Insurance
$25,459,250
07/01/98 - 99
$14,486
Company
Including Auto Physical Damage
(Excluding Quake & Flood)
Reliance Insurance
IMF 016349
Earthquake & Flood
$5,000,000
07/01/98 - 99
$23,700
Company
Real & Personal Property
Including Contigent Tax Interruption
California
Certificate #5
Coin prehensive General
$0 Deductible Retention
07/01/98 - 99
$60,630
Joint Powers
Liability
$50 Million
Insurace Authority
California
Certificate
Worker's Compensation
$250,000
07/01/98 - 99
$37,637
Joint Powers
45009-056
Insurance Authority
American National
EMP9880468
Earthquake & Flood
$2,500,000
07/01/98 - 99
$5,000
Real & Personal Property
Including Contigent Tax Interruption
Source: City of La Quinta
105
Source:
CITY OF LA QUINTA
Miscellaneous Statistical Data
June 30,1998
Date of Incorporation ... I .......................... ......
May 2, 1982
Type of City .......................................
Charter City
Form of Government .......................................
Council/ Manager
City Employees ..... ........... ............ I ........ ..
70
City Land Area (square miles) .......................................
31.2
Population .................................... —
20,444
Number of Parks ............. I .... ....... I..,,.........
5
Total Acreage .......................................
26
Miles of Streets ........ . ....... . ................ .
144.0
Miles of Bike Paths .............. I ....................
3.0
Number of Major Intersections .............. . .......................
32
Number of Traffic Signals and Safety Lighting .........................
32
Number of Traffic Signs ...................................... .
2,530
Number of Street Lights ........ I ........... ...............
7
Public Schools ..............................
4
Private Schools ... —.— ......
I
Churches ....................................... 3
Banks/Savings and Loan ....................................... 3
Number of Single Family Units ...................... . ............... 9,448
Number of Multiple Family Units .......... . ................ . ........ 697
Number of Mobile Homes ......................... . . . ....... 247
City of La Quinta
106