1998-1999 ACFR (July 1 - June 30 Annual Comprehensive Financial Report),da 2a6tf4
Comprehensive .Annual Financial Report
for.- the
Year -Ended June 30, 1999
CITY OF LA QUINTA
La Quinta, California
Comprehensive Annual Financial Report
Year ended June 30, 1999
Prepared by
FINANCE DEPARTMENT
JOHN M. FALCONER
Director of Finance
(This page intentionally left blank)
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1999
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 4
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types
7
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual - All Governmental Fund Types 8
Statement of Revenues, Expenses and Changes in Retained Earnings -
Internal Service Fund 10
Statement of Cash Flows - Internal Service Fund 11
Notes to the Financial Statements 12
Required Supplementary Information 42
Supplemental Data:
General Fund:
Statement of Expenditures - Budget and Actual 45
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1999
TABLE OF CONTENTS, (CONTINUED)
Special Revenue Funds:
Page
Combining Balance Sheet 48
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 50
State Gas Tax Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 52
Community Service Projects Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 53
Federal Assistance Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 54
ISTEA Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 55
Lighting and Landscape Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 56
State Law Enforcement Block Grant (SLEBG):
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 57
Quimby Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 58
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1999
TABLE OF CONTENTS, (CONTINUED)
Public Safety 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
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
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
Page
59
M
61
62
63
65
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1999
TABLE OF CONTENTS CONTINUED
Debt Service Funds:
Page
Combining Balance Sheet 68
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 69
Financing Authority Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 70
Redevelopment Agency Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 71
Redevelopment Agency Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 72
Capital Projects Funds:
Combining Balance Sheet 74
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances 76
Infrastructure Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 78
Capital Improvement Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 79
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1999
TABLE OF CONTENTS, (CONTINUED
Page
Assessment District 97-1 La Quinta Norte Construction Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 80
Financing Authority Capital Projects Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 81
Redevelopment Agency Project Area No. 1 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 82
Redevelopment Agency Project Area No. 2 Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual 83
Agency Funds:
Combining Balance Sheet - All Agency Funds 86
Combining Statement of Changes in Assets
and Liabilities - All Agency Funds 88
General Fixed Assets Account Group:
Comparative Schedule of General Fixed Assets - By Source 92
Schedule of General Fixed Assets - By Function and Activity 93
Schedule of Changes in General Fixed Assets -
by Function and Activity 94
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 1999
TABLE OF CONTENTS, (CONTINUJEDI
Table No.
Page
STATISTICAL SECTION
General Fund Expenditures by Function
1
96
General Fund Revenue by Source
2
97
Property Tax Levies and Collections
3
98
Schedule of Net Taxable Value
4
99
Property Tax Rates - Direct and Overlapping Governments
5
100
Special Assessment Billings and Collections
6
101
Schedule of Direct and Overlapping Bonded Debt
7
102
Computation of Legal Debt Margin
8
103
Revenue Bond Coverage
9
104
Demographic Statistics
10
105
Property Value, Construction Activity, and Bank Deposits
11
106
Principal Taxpayers
12
107
Major Employers
13
108
Schedule of Insurance in Force
14
109
Miscellaneous Statistical Data
15
110
December 1, 1999
TitT 4 4 a4zotro
P.O. Box 1504
78-495 CALLS TAMPICO (7 60) 777-7000
LA QUINTA, CALIFORNIA 92253 (TDD) (760) 777-1227
Honorable Mayor, City Council,
and City Manager
City of La Quinta
La Quinta, California
We are pleased to present the 1999 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, 1999. 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.
DocIII'IIent Struetin
The CAFR is presented in three sections:
Introductory;
Financial; and,
Statistical.
W[4
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.
Ra_ekgionnd
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 1998 was 21,763 an increase of 94% from 1990;
• Retail Sales of $158 million a 357% increase from 1990;
• Taxable Sales of $214 million a 220% increase from 1990;
• Assessed Valuation over $2.6 billion a 207% increase from 1990; and,
• Hotel Room sales over $32.5 million a 69.5% increase from 1990.
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 If
10,000 sq R Senior Center for City
residents. The Desert Sands Unified School District provides educational opportunities for school-age children
in La Quinta.
The City has been experiencing rapid growth in population making it one of the fastest growing Cities in
California. With this growth comes a demand on local government to meet the needs of its citizens. For the
year ending June 30, 1999, the City of La Quinta posted a gain in sales tax revenue of 39.67% over the previous
year. The total number of full time authorized positions for 1998-99 is 72. In addition to the 21,763 permanent
residents approximately 11,368 seasonal residents spend three to six months in the City.
11
Honorable Mayor, City Council,
and City Manager
City services can be divided into those services provided directly by City staff and those services contracted out
or provided by other government agencies and organizations.
provided by City staff in the following areas include:
- Legislative - City Clerk-
-
lerk- City Manager
- Economic Development C..omrr3 Jnr` y Services
- Personnel - Administration
Finance
- Fiscal Services
- Central Services
Building and Safety
- Administration
- Code Compliance
- Animal Control
- Building
- Emergency Services
- Fire
- Civic Center Building
Public Works
- Administration
- Development/Traffic
- Street & Landscape Maintenance
- Capital Projects
- Recreation
- Senior Center
Commuaity Myclopment
- Administration
- Planning
- South Coast Air Quality
- Redevelopment
Services are also provided to the City and its citizens by contract and by the direct services of other government
agencies and organizations. These services 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 and Visitors Bureau, and 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, public transit through Sunline Transit Agency, and cable service through Media
One.
ill
Honorable Mayor, City Council,
and City Manager
During 1998-99 the City experienced many significant events and accomplishments that may not be readily
evident from a review of the financial statements. Some of the more important of these items are:
Single family construction accounted for $225 million in building permits while commercial construction
accounted for $10 million.
A 4,700 square foot International House of Pancakes was built in the Home Depot retail center.
The development of numerous residential communities including PGA West, Rancho La Quinta and the
Traditions has increased the assessed valuation in the City. As mentioned earlier, the City's assessed valuation
has increased 207% from 1990 to over $2.6 billion, with an increase of $365 million during the latest year.
Hong
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 870 housing units built during 1998 which brings to 13,499 the number of total units within the City.
The 13,499 units consist of 12,555 single family residences, 697 multi family residences, and 247 mobile
homes.
La Quinta is home to several of the world's highest rated golf courses. During FY 1998-99, 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.
The La Quinta Resort and Club, the second largest destination resort in the Coachella Valley, continues to record
dramatic growth in hotel revenues.
iv
Honorable Mayor, City Council,
and City Manager
The City increased funding for the Palm Springs Desert Resort Convention & Visitors Bureau for tourism
promotion and provided funding for the Airline Services Council to continue airline marketing efforts for the
Coachella Valley.
Capital Tmnrovem nests
The City completed over $6.7 million dollars of Capital Improvements in FY 98/99. Major expenditures were
made on the Catellus Moderate Single Family and Senior Housing Project at Ave 48" and Jefferson, the
Miles/Washington Widening Project, the Washington Street Bridge Widening Project at Avenue 50, the traffic
signal at Highway 111 and Plaza La Quinta, and public improvements at the Centre at La Quinta Auto Mall site.
Preliminary design work was completed on the Jefferson Street widening project between Highway 111 and
Avenue 54, two City entrance monuments and the Civic Center expansion.
Next year, the City's Capital Improvement Project (CIP) program will increase over $8.8 million bringing the
1999-00 City CIP program to $52.8 million. The major commitment in the infrastructure will provide for both
the current and future growth that the City has experienced.
The City completed improvements for covered parking and an emergency generator at the Senior Center,
continued to fund the Washington I-10 interchange project through the Coachella Valley Association of
Governments (CVAG) and participated in a multi jurisdiction project to rebuild the Miles Avenue crossing at
the Whitewater River.
The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta during
1998-99:
Implementation of an Economic Development Strategy Plan;
Implementation of an Economic Development Marketing Plan;
Received several grant awards for public safety, bicycle lanes, urban forestry;
Received awards in excellence for financial and budget reports;
Started the General Plan Updates.
Fu trr_-:velonments include, continued commercial development along the Highway 111 corridor,
redevelopment financed property developments and completion of residential projects in the northern part of
the City.
Honorable Mayor, City Council,
and City Manager
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.
. - . ALidit - 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, 1999 provided no instances of material weaknesses in the framework of
internal controls or significant violations of applicable laws and regulations.
Acca ting Car i is - 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 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.
Vi
Honorable Mayor, City Council,
and City Manager
In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting
system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain
the accuracy of financial record keeping. These internal controls must be established consistent with sound
management practices based upon the cost/benefit of the controls imposed. The cost of a control should not be
excessive to its derived benefit as viewed by City management. The internal controls in existence at the City
of La Quinta are sufficient to ensure, in all material respects, both the safety of the City's assets and the accuracy
of the financial record keeping system.
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
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 $28.02
million for Fiscal Year 1998-99. Appropriations of "proceeds of taxes" was $8.22 million for a margin of
$19.8 million.
vu
Honorable Mayor, City Council,
and City Manager
The following schedules present a summary of the General Fund, special revenue funds, debt service funds,
Capital project funds and expenditures for 1998-99 and the amount and percentage of increases and decreases
in relation to prior year revenues.
Fund Type 1998-99
98-99 over %
1997-98 (under) 97-98 Change
General Fund
$15,870,489
$11,808,235
$4,062,254
Special Revenue Funds
7,279,078
6,543,379
735,699
Debt Service Funds
15,267,586
13,860,628
1,406,958
Capital Project Funds
7,498,334
4,670,155
2,828,179
Total
145.915,487.
$36,882,397
= $9,033,088
Fund Type
1998-99 1997-98
98-99 over
34.4%
11.2%
10.2%
60.6%
24.5%
(under) 97-98 Change
General Fund
$ 9,847,000
$8,327,740
1,519,260
18.2%
Special Revenue Funds
3,874,525
3,951,583
<77,058>
<2.0>%
Debt Service Funds
17,404,888
16,458,977
945,911
5.7%
Capital Project Funds
8,125,252
8,240,765
<115,513>
<1.4>%
Total
$39,417,002
$37,139.116
2,277,886
6.1%
For all governmental 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 tax increment revenue in the
Debt Service Fund. Expenditures in all areas of the General Fund increased by a combined amount of 18.2%,
with Capital Project fund expenditures decreasing by 1.4%.
Honorable Mayor, City Council,
and City Manager
The City's General Fund is used to record all revenue and expenditures not specifically restricted by
law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy
tax, licenses and permits, motor vehicle license fees and interest. Categories of expenditures include
police services, public works, Community Development Community Services and administrative
functions.
The following two tables summarize actual General Fund revenues and expenditures for 1998-99 and
1997-98:
Source
1998-99 1997-98
Taxes
$ 8,101,191
$6,764,355
Licenses and permits
1,951,981
1,144,564
Charges for services
1,965,219
1,228,269
Intergovernmental
1,466,788
1,110,553
Interest
1,569,796
1,164,145
Litigated Settlements
740,985
281,382
Miscellaneous
74,529
114,969
Total
$15,870,489
$11,808,237
ix
98-99 over
%
(under) 97-98
Change
$1,336,836
19.8%
807,417
70.5%
736,950
60.0%
356,235
32.1%
405,651
34.8%
459,603
163.3%
<40,440>
<35.2>%
$4,062,252
34.4%
Honorable Mayor, City Council,
and City Manager
The total 1998-99 General Fund revenue increased by 34.4% over FY 1997-98. The 19.8% increase in
Tax revenue consisted of increased Transit Occupancy Tax, property tax and sales tax stemming from
increased construction activity and population growth. The 70.5% increase in Licenses and Permit
revenue consisted of payments related to residential and commercial building activities. The 60% increase
in Charges for Service revenue consisted of Community Development and Public Works fees related to
commercial and residential building activities. Intergovernmental revenue increased by 32.1% from
increases in motor vehicle taxes, and County library funding. The increase in Interest of 34.8% consisted
of larger fund balances available for investment. Litigated Settlements revenue increased by 163.3%
consisting of a final settlement received from a defendant in a legal matter.
Expenditure Type
General Government
Public Safety
Community Services
Planning & Development
.Public Works
Total
1998-99 1997-98
$2,473,241
$2,229,389
4,468,294
4,099,523
732,741
494,402
626,074
345,054
1,546,650 1,159,372
$9,847,000 $8,327,740
98-99 over %
(under) 97-98 Change
243,852
10.9%
368,771
9.0%
238,339
48.2%
281,020
81.4%
387.278
33.4%
1,519,260 18.2%
The general government expenditure increase of 10.9% consisted mainly of the City's commitment to
economic development efforts. Public Safety expenditures increased 9% consisting of cost of living
adjustments to the County Sheriffs contract. Community Services costs increased by 48.2% due to
budgeting certain grant. related services previously paid out of General Government departments and
increased services which would be partially offset by program revenues. Planning and Development
expenditures increased due to increased consultant costs for the General Plan. Public Works expenditures
increased due to additional traffic and landscape maintenance, and construction management efforts.
x
Honorable Mayor, City Council,
and City Manager
The City's Special Revenue Funds, which account for the collection and use of special or restricted
revenues, received $7.3 million in total revenue in FY 1998-99. This as a increase of 11.2%. The Special
Revenue Fund expenditures were $3.8 million, a decrease of 2%.
The following two tables summarize Special Revenue Funds revenues and expenditures for 1998-99 and
1997-98:
Source
1998-99
1997-98
Taxes
$3,592,472
$3,253,847
Developer fees
650,735
178,713
Intergovernmental
596,177
1,200,519
Interest
1,070,240
728,523
Special assessments
759,273
809,041
Rental Income
414,236
395,414
Gain <Loss> on Land Sale
195,945
<22,678>
Total
98-99 over
(under) 97-98
$ 338,625
472,022
<604,342>
978,717
<49,768>
18,822
218,623
Change
10.4%
264.1%
<50.3>%
46.9%
<6.2>%
4.8%
964.0%
$72279.078 16,543,379 $735,699 11.2%
Taxes increased 10.4% from increased construction activity in Redevelopment Project Area No. 1 and 2
which will be used for low and moderate income housing purposes. Developer fees increased 264.1% as
a result of a contribution for the Avenue 48`" road improvements. Intergovernmental revenue decreased
50.3% due to decreases in Federal Assistance and ISTEA funding for construction projects for FY 1998-
99. Interest income increased 46.9% due to larger cash balances to invest. Proceeds from land sale
increased 964.% from the sale of Redevelopment Agency property.
Expenditure Type 1998-99
Public Safety $ 0
Planning & Development 2,704,025
Public Works 1,170,500
Total $3,874,525
1997-98
$ 33,388
2,729,873
1,188,322
$3,951,583
98-99 over
(under) 97-98
$ <33,388>
<25,848>
<17,822>
$<77,058>
Chang
<100.0>%
<.9>%
<1 5>%
<2.0>
No significant changes in Special Revenue expenditures between FY 1998-99 and FY 1997-98 were noted.
X1
Honorable Mayor, City Council,
and City Manager
The City's Debt Service Funds are used to record the payment of interest and principal on the current
portion of outstanding debt.
The following two tables summarize Debt Service Funds revenues and expenditures for 1998-99 and 1997-
98:
Source
Taxes
Interest
Rental Income
Total
1998-99
$14,369,887
213,126
(Rd 571
$15,267,586
1997-98
$13,015,387
110,618
734,623
$13,860,628
98-99 over
(under) 97-98
$ 1,354,500
102,508
<50,050>
$1,406,958
Change
10.4%
92.7%
<6.8>%
1O 7%
The Tax revenues increase of 10.4% reflects increased building activities and lower than expected property
value reassessment appeals. Interest income increased 92.7% due to increased cash balances to invest.
Rental income decreased by 6.8% to pay for the FY 1998-99 Financing Authority debt service payments.
Expenditure Type 1998-99
Planning & Development $ 270,566
Debt Service 17,134,322
Total $17,404,888
1997-98
$209,588
16,249,389
$16,458,977
98-99 over
(under) 97-98
$ 60,978
884,933
$945,911
Change
29.1%
5 A0/.
5 7 °/n
The increase of 29.1 % 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 5.4% reflects
higher scheduled tax increment pass through payments in the Redevelopment Agency.
xii
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 1998-99 and
1997-98:
Change
57.4%
<2.9>%
55.7%
N/A
AM i'M jai
60.6%
Developer fees increased by 57.4% due to increased building activities. Interest income increased
55.7% as a result of increased cash balances. Litigated settlements increased as a result of a final
settlement received from a defendant in a legal matter.
Capital &Qject Fulads
- Revenu
98-99 over
Source
1998-99
1997-98
(under) 97-98
Developer fees
$4,663,006
$2,961,792
$1,701,214
Intergovernmental
1,133,477
1,167,522
<34,045>
Interest
841,769
540,637
301,132
Special Assessments
38,493
0
38,493
Litigated Settlements
821,589
204
821,385
Total
$7,498,334
$4,670,155
$2,828,179
Change
57.4%
<2.9>%
55.7%
N/A
AM i'M jai
60.6%
Developer fees increased by 57.4% due to increased building activities. Interest income increased
55.7% as a result of increased cash balances. Litigated settlements increased as a result of a final
settlement received from a defendant in a legal matter.
Honorable Mayor, City Council,
and City Manager
Expenditure Type
Planning & Development
Capital Outlay
Total
Capital Project Funds - Expenditures
98-99 over %
1998-99
1997-98
(under) 97-98
Change
$ 1,147,357
$651,832
$ 495,525
76.0%
6,977,895
7,588,933
<611,038>
<8.1>%
$8,125,252
$8,240,765
$<115,513>
<1.4>%
Planning and Development expenditures increased 76.0% due to payments to a developer for the La Quinta
Norte Assessment District. The Capital Outlay line item decreased 8.1 % from FY 1997-98.
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. 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. After the original purchase subsequent vehicles and
equipment are paid for out of the Equipment Replacement Fund.
xiv
Honorable Mayor, City Council,
and City Manager
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 ftlau
ent
Fund
98-99 over
%
1998-99
1997-98
(under) 97-98
Change_
$ 338,665
$
199,73
$ 138,934
69.6%
$ 72,969
$
60,585
$ 12,384
20.4%
4,010
4,626
<616>
<13.3>%
88,358
94,840
<6,482>
<6.8>%
$ 165,337
$
160,051
$ 5,286
3.3%
$ 173,328
$
39,680
$ 133,648
336.8%
$ 52,560
$
25,491
$
27,069
106.1%
$ 225,888
$
25,491
$
27,069
106.1%
$ 52.560
$
65,171
$
160,71.7
246.6%
$ 0
$ 0
$ 0
$ 0 n/a
$ 0 n/a
$ 225 2i s
� bJ 1/1
1) 10V'/11
41ru.0 io
$ 573 901
$ 508,730
$ 652171
12.8%
$ 799,789
1 573,901
$ 225,88835,
9%
xv
Honorable Mayor, City Council,
and City Manager
R iA—managclz =
The City of La Quinta joined the California Joint Powers Insurance Authority (CJPIA) 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, 1999, 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 27. Based upon the latest information, the total over funded benefit obligation applicable
to the employees of the City at June 30, 1997 was $813,152 up $472,910 from an over funded pension benefit
obligation of $340,242 as of June 30, 1996. Employer contribution rates are reviewed and adjusted annually
to achieve full funding for retirement benefits by the year 2011.
Debt A mini strat on
At year end, the City of La Quinta had a number of debt issues outstanding. The City had outstanding one lease
bond issue and four tax allocation bond issues the total debt service of $148.6 million. During the year the City
has reduced the debt service on these issues by $5.7 million to $142.9 million. The City has met all debt service
payments and is not aware of deficiencies in the terms of its bond covenants.
Cash M n g.m.n
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 1998-99 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.
xvi
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 earned nearly $3.7 million in interest on
investments in all fund types, compared to earnings of $2.54 million during 1997-98. Funds are invested in
various types of instruments as shown below. The -increased earnings on pooled cash investments reflects larger
cash balances from the previous year. At June 30, 1999, the Treasurer had 100% of all available funds invested.
The City's total portfolio at year end was $ 57,550,514.
Below is a summary of cash and investments outstanding as of June 30, 1999:
Eurn of Cash and Inyestments Tune 30, 1999
Demand Deposits $ 1,184,222
U.S. Treasury Bills/Notes 19,119,499
U.S. Government Agency Securities 17,990,230
Mutual Funds -First American Treasury 4,903,842
Local Agency Investment Fund 14,352,E
Total $ 57.550.514
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.
M1 W.V,,n, ToI1 MTj FM - i t C•oTsi VI
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
ACh lcd;g=nIs
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 DeRenard, Secretary, for her report preparation skills and Sharon Christiansen, 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.
Respectfully submitted,
I"l
4;4��
John M. Falconer
Finance Director and Treasurer
xvui
City of La Quinta
Directory of Officials
June 30, 1999
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 Manager
John M. Falconer, Finance Director
Tom Hartung, Building & 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
City of La Quinta, California
Organizational Chart
Fiscal Year 1998/99
Admintstration
Director
Recreation Supervisor
Secretary
Senior Ce nter
Supervisor
Activities Coordinator
Assistant - 3/4 Time
Administration
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
Maintenance Worker 1- 5 Positions
Fiscal Services
Director
Accounting Manager
Financial Services Assistant
Account Technician - 2 Positions
Secretary
Account Clerk
Central Services
Senior Management Assistant
Administration
Director
Senior Secretary
Code Compliance
Community Safety Manager
Code Compliance Officer II
Code Compliance Officer I - 2 Positions
Counter Technician
Animal Control
Animal Control Officer II
Animal Control/Code Compliance Officer
2 posi6qqsj
Building
Buliding & Safety Manager
Senior Building Inspector
Building Inspector II
Building Inspector I
Counter Technician
Civic Center Suildi Operations
Facilities Maintenance Technlclan
Administration
Director
Planning Manager
Associate Planner
Executive Secretary
Secretary
Planning
Principal Planner - 2 positions
Associate Planner - 3 Positions
California Society of
0
Municipal yinance Officers
Certificate of Award
Outstanding Financial Reporting 1997-98
Presented to the
City of La Quinta
7�
Thu cernpcate is issued in recognition of meetlngprolessional standards and criteria In reporting
( i r which reflect a high level of quality in the annual financial statements
r /A ; r+;, and in the underlying accounting system from which the reports were prepared
,
, ,,, , ., March 1,1999
+� ,� tyx.
Ch r, Profusions & Tethpica] 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, 1998
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.
37z-,
Cz President
Y�� L!�;t
Executive Director
Xxii
CONRADAND
ASSOCIATES, L.L.P.
The Honorable Mayor and City Council
City of La Quinta
La Quinta, California
Independent Auditors' Repo
CERTIFIED PUBLIC ACCOUNTANTS
1100 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92614
(949) 474-2020
Fax (949) 263-5520
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, 1999, as listed in the accompanying
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 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, 1999,
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.
The information regarding the year 2000 issue identified as required supplementary information
in the accompanying table of contents is not a required part of the basic financial statements, but
is supplementary information required by the Governmental Accounting Standards Board. We
did not audit and do not express an opinion on such information. Further, we were unable to
apply to this information the procedures prescribed by professional standards because of the
difficulty in ascertaining whether the information presented includes a sufficiently complete
description of the year 2000 issue as it relates to the reporting government. In addition, we do
not provide assurance that the City of La Quinta is or will become year 2000 compliant, that the
City of La Quinta's year 2000 remediation efforts will be successful in whole or in part, or that
parties with which the City of La Quinta does business are or will become year 2000 compliant.
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
The Honorable Mayor and City Council
City of La Quinta
Page Two
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 fund financial statements and
schedules listed in the table of contents are presented for purposes of additional analysis and are
not a required part of the general purpose financial statements of the City of La Quinta,
California. Such information has been subjected to the auditing procedures applied in the audit
of the general purpose financial statements, and in our opinion, is fairly stated in all material
respects in relation to the general purpose financial statements taken as a whole. The scope of
our audit did not include the supplemental statistical schedules listed in the table of contents and
we do not express an opinion on them.
In accordance with Government Auditing Standards, we have also issued a report dated August
13, 1999 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.
G`/rr'�.scss /s w,,665 t .G . 100
August 13, 1999
2
(This page intentionally left blank)
CITY OF LA QUINTA
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1999
Assets and Other Debits
Assets:
Goverimicatal Fund Types
Special Debt
General Revenue Service
Cash and investments (note 2)
$
15,029,867
6,457,004
Cash with fiscal agent (note 2)
20,879,322
-
6,110,194
Accounts receivable
307,358
44,006
Prepaid items
60,300
-
Interest receivable
172,356
229,099
Notes receivable (note 26)
-
2,556,508
Due from other funds (note 25)
785,357
-
Due from other governments
403,335
19,275
Advances to other funds (note 14)
8,779,446
551,038
Deposits
39,812
-
Property, plant and equipment (note 4)
-
-
Other debits:
Amount available in debt service funds
-
-
Amount to be provided for retirement of
general long-term debt
-
-
Total assets and other debits
$
25,577,831
15,967,124
Liabilities. Equity and Other Credits
Liabilities:
Accounts payable
$
860,632
40,807
Accrued expenses
389,972
-
Compensated absences payable (note 5)
-
-
Deferred revenue
8,271
-
Deposits payable
921,685
54,604
Retentions payable
-
-
Due to other funds (note 25)
77,715
775,981
Due to bondholders
-
-
Advances from other funds (notes 14)
-
-
Long-term debt (note 5 through 15)
-
-
Total liabilities
2,258,275
871,392
Equity and other credits:
Investment in general fixed assets
-
-
Contributed capital (note 19)
-
-
Retained earnings (note 18):
Unreserved
-
-
Fund balances (note 17):
Reserved
8,879,558
9,217,740
Unreserved
14,439,998
5,877,992
Total equity and other credits
-
23,319,556
15,095,732
Total liabilities, equity and other credits
$
25,577,831
15,967,124
See accompanying
notes to financial
statements.
4
3,641,336
183,975
504
37,465
Capital
Projects
14,462,268
8,504,138
60,900
124,439
112,343
91,970
3,863,291 23,356,058
4,403 564,041
899,524
- 163,467
9,896 13,735
551,038 835,969
jo.),_1-1i /-,'+io,i.)o
3,306,726
8,797,275
(8,772)
12,082,047
3,297,154
20,879,322
3,863,291
23,356,058
Proprietary Fiduciary
Fund Type
Fund Type
Account Groups
Totals
Internal
General
General
(Memorandum Only)
Service
Agency
Fixed Assets
Long -Term Debt
1999
1998
947,464
2,214,268
-
-
42,752,207
30,661,756
-
-
-
-
14,798,307
16,684,009
-
-
-
-
412,768
382,353
-
-
-
60,300
3,491
10,135
-
-
-
573,494
308,906
-
-
-
-
2,668,851
2,528,967
-
-
-
-
877,327
427,867
-
-
-
-
422,621
358,258
-
-
-
-
9,330,484
9,461,114
-
-
-
-
39,812
2,175
704,334
-
25,380,028
-
26,084,362
27,019,447
-
-
-
3,306,726
3,306,726
4,286,709
-
-
-
104,523,619
104,523,619
107,040,025
1,661,933
2,214,268
25,380,028
107,830,345
205,850,878
199,165,077
4,625
423
-
-
1,474,931
1,219,587
-
-
-
-
389,972
612,675
-
-
-
337,881
337,881
313,620
-
-
-
-
8,271
14,230
-
642,064
-
-
2,517,877
1,160,684
-
-
-
-
163,467
259,532
-
-
-
-
877,327
427,867
-
1,571,781
-
-
1,571,781
1,381,509
-
-
7,943,477
9,330,484
9,461,114
-
-
-
99,548,987
99,548,987
102,103,038
4,625
2,214,268
-
107,830,345
116,220,978
116,953,856
-
-
25,380,028
-
25,380,028
26,447,453
857,519
-
-
-
857,519
701,026
799,789
-
-
-
799,789
573,901
-
-
-
-
30,201,299
32,892,230
-
-
-
-
32,391,265
21,596,611
1,657,308
-
25,380,028
-
89,629,900
82,211,221
1,661,933
2,214,268
25,380,028
107,830,345
205,850,878
199,165,077
5
(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, 1999
Other financing sources (uses):
Operating transfers in
148,422
11,781
1,569,263
6,887,847
Totals
12,894,761
Operating transfers out
Special
Debt
Capital
(Memorandum Only)
(8,617,313)
General
Revenue
Service
Projects
1999
1998
Revenues:
issuance costs)
-
705,262
Taxes
$ 8,101,191
3,592,472
14,369,887
-
26,063,550
23,033,589
Licenses and permits
1,951,981
-
-
-
1,951,981
1,144,562
Charges for services
1,965,219
-
-
-
1,965,219
1,228,269
Developer fees
-
650,735
-
4,663,006
5,313,741
3,140,505
Intergovernmental
1,466,788
596,177
-
1,133,477
3,196,442
3,478,594
Investment income
1,569,796
1,070,240
213,126
841,769
3,694,931
2,543,923
Special assessments
-
759,273
-
38,493
797,766
809,041
Rental income
-
414,236
684,573
-
1,098,809
1,130,037
Gain (loss) on sale of land
-
195,945
-
-
195,945
(22,678)
Litigation settlement proceeds
740,985
-
5,835,797
821,589
1,562,574
281,586
Miscellaneous
74,529
-
-
-
74,529
114,969
Total revenues
15,870,489
7,278
15,267,586
7,498,334
45,915,487
36,882,397
Expenditures:
-
Fund balances at end of year
$ 23,319,556
15,095,732
3,297,954
20,879,322
Current:
54,488,841
General government
2,473,241
-
-
-
2,473,241
2,229,389
Public safety
4,468,294
-
-
4,468,294
4,132,911
Community services
732,741
-
732,741
494,402
Planning and development
626,074
2,704,025
270,566
1,147,357
4,748,022
3,936,347
Public works
1,546,650
1,170,500
-
-
2,717,150
2,347,694
Capital projects
-
-
-
6,977,895
6,977,895
7,588,933
Debt service:
Principal
-
3,405,000
-
3,405,000
1,960,000
Interest
-
5,001,240
-
5,001,240
5,034,169
Payments under pass-through
obligations
-
-
8,728,082
-
8,728,082
9,255,220
Total expenditures
9,847,000
3,874,525
17,404,888
8,125,252
39,251,665
36,979,065
Excess (deficiency) of
revenues over (under)
expenditures
6,023,489
3,404,553
_ (2,137,302)
(626,918)
6,663,822
(96,668)
Other financing sources (uses):
Operating transfers in
148,422
11,781
1,569,263
6,887,847
8,617,313
12,894,761
Operating transfers out
(336,114)
(5,181,414)
(1,254,118)
(1,845,667)
(8,617,313)
(12,894,761)
Proceeds of bonds (net of
issuance costs)
-
705,262
705,262
21,565,688
Payments to refunded bond
escrow agent
-
-
-
-
(13,430,939)
Proceeds of advances
-
-
833,402
-
833,402
810,006
Total other financing
sources (uses)
(187,692)
(5,169,633)
1,148,547
5,747,442
1,538,664
8,944,755
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
5,835,797
(1,765,080)
(988,755)
5,120,524
8,202,486
8,848,087
Fund balances at beginning of year
17,483,759
16,860,812
4,286,709
15,857,561
54,488,841
45,640,754
Residual equity transfers
-
-
(98,763)
(98,763)
-
Fund balances at end of year
$ 23,319,556
15,095,732
3,297,954
20,879,322
62,592,564
54,488,841
See accompanying notes to financial statements.
7
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, 1999
Revenues:
Taxes
Licenses and permits
Charges for services
Developer fees
Intergovernmental
Investment income
Special assessments
Rental income
Gain (loss) on sale of land
Litigation settlement proceeds
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Community services
Planning and development
Public works
Capital projects
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 bonds (net of issuance costs)
Proceeds of advances
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
and other financing uses
Fund balances at beginning of year
Residual equity transfers
Fund balances at end of year
General Fund
Variance
Favorable/
BudgLt_ Actual (Unfavorable)
$ 6,335,800
8,101,191
1,765,391
760,700
1,951,981
1,191,281
754,300
1,96 5,219
1,210,919
1,090,225
1,466,788
376,563
1,123,600
1,569,796
446,196
-
740,985
740,985
44,600
74,529
29,929
10,109,225
15,870,489
5,761,264
2,719,885
2,473,241
246,644
4,759,081
4,468,294
290,787
780,231
732,741
47,490
950,093
626,074
324,019
1,543,645
1,546,650
(3,005)
10,752,935
9,847,000
905,935
(643,710)
6,023,489
6,667,199
222,069
148,422
(73,647)
(1,405,943)
(336,114)
1,069,829
(1,183,874)
(187,6
996,182
(1,827,584)
5,835,797
7,663,381
17,483,759
17,483,759
17,483,759
$ 15,656,175
23,319,556
25,147,140
See accompanying notes to financial statements.
8
Special Revenue Funds
Variance
Favorable/
F3udf ct Actual (Unfavorable)
3,429,250 3,592,472 163,222
20,000
650,735
630,735
832,162
596,177
(235,985
437,500
1,070,240
632,740
796,600
759,273
(37,327
341,000
414,236
73,236
150,000
195,945
45,945
6,006,512 779 078 1,272,566
Debt Service Funds
Variance
Favorable/
Fiudget Actual (Unfavorable)
13,716,999 14,369,887 652,888
12,400 213,126
200,726
672,173 684,573
12,400
5,600 -
(5,600)
14,407,172 15,267,586
860,414
Capital Projects Funds
Variance
Favorable/
BudLet Actual (Unfavorable)
2,076,889 4,663,006 2,586,117
8,167,869 1,133,477 (7,034,392)
405,500 841,769 436,269
38,500 38,493 (7)
- 821,589 821,589
10,688,758 7,498,334 (3,190,424)
3,515,223 2,704,025 811,198 285,950 270,566 15,384 2,873,836 1,147,357 1,726,479
1,170,500 1,170,500 - - - - - - -
- - - - - 36,352,632 6,977,895 29,374,737
3,405,000 3,405,000 -
5,001,240 5,001,240 - -
- 8,675,938 8,728,082 (52,144) - - -
4,685,723 3,874,525 811,198 17,368,128 17,404,888 (36,760) 39,226,468 8,125,252 31,101,216
14320,789
3,404,553
2,083,764
(2,960,956)
(2,137,302)
823,654
(28,537,710)
(620,91.8)
27,910,792
11,206
11,781
575
21077,475
1,569,263
(508,212)
28,223,097
6,887,847
(21,335,250)
(12,420,053)
(5,181,414)
7,238,639
(1,254,118)
(1,254,118)
-
(12,647,045)
(1,845,667)
10,801,378
-
-
-
-
-
-
745,000
705,262
(39,738)
-
-
-
833,402
833,402
-
-
_{12,408,847}
(5,169,633)
7,239,214
1,656,759
1,148,547
(508,212)
16,321,052
5,747,442
(10,573,610)
(11,088,058)
(1,765,080)
9,322,978
(1,304,197)
(988,755)
315,442
(12,216,658)
5,120,524
17,337,182
16,860,812
162860,812
-
4,286,709
4,286,709
-
15,857,561
15,857,561
-
-
-
-
-
(98,763)
(98,763)
5372,754
15,095,732
9,322,978
2,982,512
3,297.954
� 315,442
3,640,903
20,879,322
17,238,419
9
CITY OF LA QUINTA
Statement of Revenues, Expenses and Changes in Retained Earnings -
Internal Service Fund
Year ended June 30, 1999
Operating revenues:
Charges for services $ 338,665 199,731
Operating expenses:
Fuel and oil
26,924
27,189
Maintenance and parts
46,045
33,396
Administration
4,010
4,626
Depreciation
88,358
94,840
Total operating expenses
165,337
160,051
Operating income (loss)
173,328
39,680
Non-operating revenues (expenses):
Investment income
52,560
25,491
Total nonoperating revenues
52,560
25,491
Net income (loss)
225,888
65,171
Retained earnings at beginning of year
573,901
508,730
Retained earnings at end of year
$ 799,789
573,901
See accompanying notes to financial statements.
10
CITY OF LA QUINTA
Statement of Cash Flows - Internal Service Fund
Year ended June 30, 1999
Cash flows from operating activities:
Cash received from other departments
Cash payments to suppliers for goods and services
Net cash provided by (used for) operating activities
Cash flows from capital and related activities:
Purchase of fixed assets
- Net cash provided by (used for) capital and related activities
Cash flows from investing activities:
Interest received on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash ar:3 cash equivalents at end of year
Reconciliation of operating income to net cash provided by
operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
Adjustments:
Change in accounts payable
Net cash provided by (used for) operating activities
Noncash capital, financing and investing activities:
Fixed assets contributed by other funds
$ 338,665 199,731
(78,319) 66,366
260,346 133,365
(64,602 -
(64,602) -
42,425
25,491
42,425
25,491
238,169
158,856
709,295
550,439
$ 947,464
709,295
See accompanying notes to financial statements.
11
$ 173,328 39,680
88,358
1,340
$ 260,346
94,840
1,155)
133,365
$ 156,493 72,306
CITY OF LA QUINTA
Notes to the Financial Statements
Year ended June 30, 1999 1
J
(li Summary of Significant Accounting Policies
(a) ReRorting_Entity
The City of La Quinta ("the City") was incorporated May 1, 1982 under the
general laws of the State of California. In November 1996, the City became a
charter City. 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 J
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 J
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.
1
12
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
fl_) Summary of Significant Accounting Policies, (Continued)
The following organizations are considered to be component units of the City:
La Ouinta Redevelopment Agenc
The La Quinta Redevelopment Agency (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. Although the Agency
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. Separate financial
statements of the Agency can be obtained at City Hall.
City_vfLa, 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 the Authority 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. 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.
13
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The accounting records of the City are organized on the basis of funds and
account groups classified for reporting purposes as follows:
GOVERNMENTAL FUNDS
General Fund
The primary fund of the City 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.
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific revenue
sources that are restricted by law or administrative action for specific purposes.
Debt Service Funds
The Debt Service Funds are used to account for resources set aside for repayment
of general long-term debt.
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.
14
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
�1} SummM of Significant Accounting Policies, (Continued)
FIDUCIARY FUNDS
Agency Funds
The Agency Funds are used to account for assets held by the City in an agency
capacity for individuals, private businesses and other governmental agencies.
ACCOUNT GROUPS
General Fixed Assets Account Grou
The General Fixed Assets Account Group is used to account for the costs of fixed
assets acquired to perform general government functions.
Assets purchased are recorded as expenditures in the governmental funds and
capitalized at cost in the general fixed assets account group. Fixed asset records
include estimates of original historical cost as determined by knowledgeable
individuals in the City. Contributed fixed assets are recorded in general fixed
assets at fair market value when received. Fixed assets acquired under a capital
lease are recorded at the net present value of future lease payments.
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 Lonia-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.
15
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1„) 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.
16
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant 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 $26,489,134 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 fiend 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 between the City and the Agency 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.
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.
17
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued)
(h) Cash Equivalents
For purposes 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
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary funds' share in the cash and investment pool of the City
of La Quinta. Cash equivalents have an original maturity date of three months or
less from the date of purchase. For purposes of the statement of cash flows, the
entire balance of cash and investments on the combined balance sheet for the
internal service fund is considered cash and cash equivalents.
(i) 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, 1999.
The County of Riverside assesses, bills, and collects property taxes for the City.
0) 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.
18
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summaryof Significant Accounting Policies, (Continued)
0) Property, Plant and Equipment, (Continued)
Assets in the general fixed assets account group are not depreciated. Depreciation
of building improvements, equipment and furniture, 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 5-10 years
(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) Postemnloyment Benefits
The City does not provide postemployment benefits (other than pension benefits)
to its employees.
(n) Capital Projects
Capital projects expenditures include public domain or infrastructure projects
which are not capitalized as additions to general fixed assets.
19
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued)
(o) 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.
(p) 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.
(q) Memorandum Only Totals
Columns in the accompanying financial statements captioned "Totals
(Memorandum Only)" are not necessary for a fair presentation of the financial
statements in accordance with generally accepted accounting principles, but are
presented as additional analytical data. Interfund balances and transactions have
not been eliminated and the columns do not present consolidated financial
information.
(2) Cash and Investments
Cash and investments are reported as follows on the combined balance sheet:
Cash and investments
Cash with fiscal agent
Total
$42,752,207
14,798,307
$57,550,514
Cash and investments held by the City at June 30, 1999 consisted of the following:
Demand deposits
Investments
Total
20
$ 1,184,222
56,366,292
$57,550,514
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
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%
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.
Category 3 - includes deposits collateralized with securities held by the pledging financial
institution, or by its trust department or agent but not in the City's name. Category 3 also
includes any uncollateralized deposits.
Form of Deposit
Deposits held by the City:
Demand deposits
Category
1 2 3
100.000 919.178 3,419,358
21
Bank Book
Balance Balance
4.438.536 1,184,222
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
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.
Cateeory
1 2 3 Carrying Value
Investments held by the City:
U.S. Treasury Notes $ 8,070,247 - - 8,070,247
Federal Home Loan Bank 7,996,334 - - 7,996,334
Federal Farm Credit Bank 4,973,944 - - 4,973,944
FNMA 5,019,952 - - 5,019,952
Investments held by fiscal agent:
U.S. Treasury Notes - 11,049,252 - 11,049,252
$26,060.477 11,049,252
Investments held by the City not subject to categorization:
Investment in State of California Local Agency Investment Fund 14,352,721
Investments in mutual funds:
First American Treasury Obligation Fund 1,154,787
Investments held by fiscal agent not subject to categorization:
Investment in mutual funds:
First American Treasury Obligation Fund 3,749,055
$56,366,292
22
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
2 Cash and Investments Continued
The carrying amount 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). 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.
f! 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.
23
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(3) Property Taxes, (Continued;)
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.
4 Fixed Assets
A summary of changes in general fixed assets for the year ended June 30, 1999 are as
follows:
The following is a summary of proprietary fund type fixed assets for the City at June 30,
1999:
Internal Service Fund
Building improvements $613,$90
Equipment 106,488
Vehicles 569,316
Less accumulated depreciation _(2a2,.360)
Total $704,334
24
Transfers
Balance at
to Proprietary
Balance at
June 30, 1998
Additions
Retirements
Funds
June 30, 1999
Land
$13,280,910
-
(1,205,239)
-
12,075,671
Equipment and furniture
1,014,292
191,524
(189,656)
-
1,116,160
Vehicles
161,052
156,493
-
(156,493)
161,052
Leasehold improvements
201,070
-
-
-
201,070
Buildings
11.790.129
35,946
-
-
11,826,075
Total
$26,447,453
383,963
(1,294.895)
156493
25.380,028
The following is a summary of proprietary fund type fixed assets for the City at June 30,
1999:
Internal Service Fund
Building improvements $613,$90
Equipment 106,488
Vehicles 569,316
Less accumulated depreciation _(2a2,.360)
Total $704,334
24
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(5) General Long -Term Debt
Changes in general long-term debt for the year ended June 30, 1999 were as follows:
Balance at Balance at
JON, I, 1998 Additions Deletions June 30, 1999
City:
Compensated absences payable $ 313,620
Capital leases payable 22,139
Due to the Coachella Valley Association
of Governments 728,311
Developer Agreements Payable 780,871
RDA Project Area No. 1:
Tax allocation bonds
39,885,000
Housing tax allocation bonds
17,429,406
Pass-through agreements payable:
Due to County of Riverside
10,322,052
Coachella Valley Unified School District
10,690,125
Advances from other funds*
4,014,837
RDA Project Area No. 2:
Tax allocation bonds
Housing tax allocation bonds
Due to County of Riverside
Advances from other funds*
Financing Authority:
24,261
371,521
6,750,000 -
4,710,594 -
2,279,540 70,460
4,895,239 461,880
(10,140)
(50,000)
(131,580)
(1,035,000)
(257,128)
(205,815)
(621,976)
(800,000)
(67,872)
(1,000,000)
337,881
11,999
678,311
649,291
38,850,000
17,172,278
10,116,237
10,068,149
3,586,358
6,750,000
4,642,722
2,350,000
4,357,119
Revenue bonds 8,505,000 - (245,000) 8,260,000
Total $111,326.734 928,122 4 424 511) 107,830,345
* 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 elle final payment
due in July 2000.
25
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(7) Due to the Coachella Value 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, 1999, the balance was $678,311.
(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, 1999 was $649,291.
9 Tax Allocation Bonds
As of June 30, 1999, 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, 1999 is $23,090,000.
26
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(9) Tax Allocation Bonds, (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, 1999, $15,250,000 of the 1990 defeased bonds are
outstanding.
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, 1999 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. As of June 30, 1999, $7,205,000 of the defeased bonds are outstanding.
Series 1998, project Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 2.
27
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
9) Tax Allocation Bonds, (Continued)
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, 1999 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. As of June 30, 1999, $5,240,000 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.
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, 1999 is
$21,815,000.
(11) 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.
28
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1-L) 1996 Lease Revenue Refunding Bonds, (Continued)
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,
1999 is $8,260,000.
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, 1999, the amount of defeased bonds outstanding is $6,640,000.
(12) Due to County 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
$10,517,138 from tax increment revenue relating to Project Area No. 1. This agreement
is in consideration of the tax revenues lost by the County as a result of the formation of
Project Area No. 1. The tax increment is to be paid to the County over a payment
schedule through June 30, 2006 in annual amounts ranging from $386,764 to $2,190,473.
Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1999 is
$10,116,237.
29
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(12) Due to County of Riverside, (Continued)
Project Area No. 2
Based on an agreement dated July 5, 1989 between the Agency and the County, until the
tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to
the County 50% of the County portion of tax increment. At the County's option, the
County's pass-through portion can be retained by the Agency to finance new County
facilities or land costs that benefit the County and serve the La Quinta population. Per
the agreement, the Agency must repay all amounts withheld from the County. The tax
increment is to be paid to the County in amounts ranging from $100,000 to $250,000
over a payment schedule through June 30, 2015. Interest does not accrue on this
obligation. The balance at June 30, 1999 is $2,350,000.
(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, 1999 totaled $10,068,149. 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.
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:
Balances at Balances at
July 1, Proceeds Repayments June 30, 1999
Agency expenditures
incurred by the City:
Project Area No. 1 $4,014,837
Project Area No. 2 4,895239
371,521 (800,000)
461,8801 0(. 00,000)
3,586,358
4,357,119
Total $8910,076 833,401 (1,800,000) 7,943,477
30
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(14) Advances To and From Other Funds (Continued)
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).
Interest does not accrue on this obligation.
In fiscal year ended June 30, 1999, the General Fund advanced $1,000,000 to the Capital
Improvement Fund to provide funding for the development of the La Quinta Auto Mall.
The Capital Improvement Fund is expected to repay the advance within two years.
Interest does not accrue on this obligation. The balance at June 30, 1999 is $835,969.
Ll5) _Debt Service Requireinen sto Maturity
The minimum annual requirements (including sinking fund requirements) to amortize the
long-term debt of the City as of June 30, 1999 are as follows (advances payable to the City
and amounts payable under developer agreements have been excluded since minimum
annual debt service payments have not been established):
31
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(I5) Debt Service Requirements to Maturity, (Continued)
*Total
principal $1099 678,311 21.815,000 23,090,000 15.760,000 _6,750,000 8,260,000 10,068.149 12.466,237 98,899.696
* Net present value of future lease payments for capital leases.
32
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
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
1,903,705
8,769,890
2002-03
- 50,000
1,592,820
2,620,855
819,520
420,747
679,435
697,918
1,903,705
8,785,000
2003-04
- 50,000
1,588,538
2,599,465
819,520
417,080
680,830
711,877
2,290,473
9,157,783
2004-05
- 50,000
1,587,990
2,612,140
819,520
418,264
681,220
726,114
2,290,473
9,185,721
2005-06
- 50,000
1,590,890
2,597,700
819,520
419,167
680,575
740,636
2,290,473
9,188,961
2006-07
- 50,000
1,645,502
2,593,456
819,520
419,785
678,865
755,449
100,000
7,062,577
2007-08
- 50,000
1,646,470
2,590,816
819,520
420,135
675,880
770,558
150,000
7,123,379
2008-09
- 50,000
1,645,125
2,584,232
819,520
420,184
676,450
785,968
200,000
7,181,479
2009-10
- 50,000
1,641,540
2,578,160
819,520
419,550
675,280
801,688
200,000
7,185,738
2010-11
- 50,000
1,640,840
2,571,868
819,520
418,272
672,525
817,722
200,000
7,190,747
2011-12
- 50,000
1,641,650
2,569,442
819,520
416,738
673,521
834,076
250,000
7,254,947
2012-13
- 28,311
1,638,750
2,560,155
819,520
419,819
673,130
421,166
250,000
6,810,851
2013-14
- -
1,638,300
-
1,457,490
417,516
671,351
-
250,000
4,434,657
2014-15
- -
1,635,150
-
1,457,520
414,956
673,046
-
250,000
4,430,672
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
14,929 678,311
43,772,612
36,348,185
34,660,960 14,571,748 13,513,607
10,068,149
15,106,062 168,734,563
Less:
Interest
(2,390)
(21.957,612)
(13,258.185)
{18900,960)7.8( 21.718) (5,253,607)
(2,639,825) (69,834,867)
*Total
principal $1099 678,311 21.815,000 23,090,000 15.760,000 _6,750,000 8,260,000 10,068.149 12.466,237 98,899.696
* Net present value of future lease payments for capital leases.
32
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(1 6) 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 gaup in the
accompanying financial statements. The following is a summary of Improvement Bonds
outstanding at June 30, 1999:
Amount Outstanding
Proceeds Maturity Date Interest Rate at June 30, 1999
Assessment District No. 88-1
$ 855,984
9/2/04
5.50%-7.25%
$ 320,000
Assessment District No. 89-2
1,153,974
9/2/04
6.65%-6.75%
505,000
Assessment District No. 90-1
1,227,155
9/2/05
6.50%-7.00%
610,000
Assessment District No. 91-1
2,240,866
9/2/06
6.70%-6.80%
1,320,000
Assessment District No. 92-1
1,880,891
9/2/08
5.00%-5.40%
1,335,000
Assessment District No. 97-1
705,262
9/2/18
4.10%-5.20%
745,000
(17) 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, 1999 consisted of the following reserves and designations:
33
Totals
General
Special
Debt
Capital
(Memorandum
Fund
Revenue
Service
Projects
Only)
Reserved for:
Debt service
$ -
-
3,306,726
-
3,306,726
Bond projects
-
6,110,194
-
8,684,932
14,795,126
Advances to other funds
8,779,446
551,038
-
-
9,330,484
Prepaid items
60,300
-
-
_
60,300
Deposits
39,812
-
-
-
39,812
Notes receivable
-
2,556,508
-
112,343
2,668,851
Subtotal
8,879,558
9,217,740
3,306,726
8,797,275
30,201,299
33
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(171 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, 1999 are as
follows:
Balance at June 30, 1998
Fixed Assets contributed by other funds
Balance at June 30, 1999
34
$701,026
156,493
$857,519
Totals
General
Special
Debt
Capital
(Memorandum
Fund
Revenue
Service
Pro'ccrs
Only)
Unreserved:
Designated for:
Emergency reserve
4,235,063
-
-
-
4,235,063
Cash flows
1,800,000
-
-
-
1,800,000
Operations/projects/transfers
8,404,935
6,490,095
-
12,095,000
26,990,030
Undesignated
-
(612,103)
(8,772
02 953
(633,828)
Subtotal
14,439,998
5,877,992
8 772
12,482,047
32,391,265
Total fund balances
$23,319,556
15,095,732
3,297,954
20,879,322
62,592,564
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, 1999 are as
follows:
Balance at June 30, 1998
Fixed Assets contributed by other funds
Balance at June 30, 1999
34
$701,026
156,493
$857,519
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
20 Deferred Com ensation
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. These assets have been
excluded from the accompanying financial statements because they are administered by
third party administrators who hold these assets in trust for the exclusive benefit of plan
participants and their beneficiaries.
1'21) Defined Benefit Pension Platt
Plan Descriution
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.
Futiding Folic
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. For the year ended June
30, 1999, the rate was 7.093% 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 1999, the City's annual pension cost (employer contribution) in the amount of
$219,350 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) 8.25%
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 3.5%. 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 accrued liability is being amortized as a level percentage of projected
35
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(21) _ _Defined_ Benefit Pension Plan, (Continued)
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
Entry Age
Three -Year Trend Information
Annual Pension
Percentage of
Net Pension
Fiscal Year Cost (APC)
APC Contributed
Obligation
6/30/97 $239,356
100%
-0-
6/30/98 218,983
100%
-0-
6/30/99 219,350
100%
-0-
Required Supplementary Information ($ amount in thousands)
(22) Claims Payable/Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Authority).
The Authority is composed of 84 California public entities and is organized under a joint
powers agreement pursuant to California Government Code Section 6500, et seq. The
purpose of the Authority is to arrange and administer programs for the pooling of self-
insured losses, to purchase excess insurance or reinsurance, and to arrange for group -
purchased insurance for property and other coverages. The Authority's pool began
covering claims of its members in 1978. Each member government has a representative
on the Board of Directors. The Board operates through a 9 -member Executive
Committee.
36
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
06/30/95
$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%)
06/30/97
3,788,306
4,601,458
(813,152)
121.5%
2,864,531
(28.387%)
(22) Claims Payable/Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Authority).
The Authority is composed of 84 California public entities and is organized under a joint
powers agreement pursuant to California Government Code Section 6500, et seq. The
purpose of the Authority is to arrange and administer programs for the pooling of self-
insured losses, to purchase excess insurance or reinsurance, and to arrange for group -
purchased insurance for property and other coverages. The Authority's pool began
covering claims of its members in 1978. Each member government has a representative
on the Board of Directors. The Board operates through a 9 -member Executive
Committee.
36
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
L22)ClaimsPayable/Self Insurance, (Continued)
General Liability
Each member government pays a primary deposit to cover estimated losses for a fiscal
year (claims year). Six months after the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims year.
Costs are spread to members as follows: the first $20,000 of each occurrence is charged
directly to the city; costs from $20,001 to $500,000 are pooled based on a members share
of costs under $20,000; costs from $500,001 of $5,000,000 are pooled based on payroll.
Costs to covered claims above $5,000,000 are currently paid by reinsurance. The
protection for the City is $50,000,000 per occurrence and $50,000,000 annual aggregate.
Workers Compensation
The City also participates in the workers compensation pool administered by the
Authority. Pool deposits and retrospective adjustments are valued in a manner similar to
the General Liability pool. The City of La Quinta is charged for the first $20,000 of each
claim. Costs above that level are pooled to $50,000. Costs from $50,001 to $100,000 per
claim are pooled based on the City's losses under its retention level. Costs between
$100,001 and $500,000 per claim are pooled based on payroll. Costs in excess of
$500,000 are paid by excess insurance purchased by the Authority. The excess insurance
provides coverage to statutory limits.
During the past three fiscal years none of the above programs of protection have had
settlements or judgments that exceeded pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage provided for
the prior year.
37
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(23) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 1999 exceeded the appropriations of the
following funds/departments:
General funds:
Economic development
Animal control
Building
Public works administration
Maintenance/operations
Capital projects administration
Special revenue funds:
Low/Moderate Bond Project Area No. 2
Debt service funds:
Financing Authority
Redevelopment Agency Project Area No.
Capital projects funds:
A.D. 97-1 LQ Norte Construction Fund
(24) Contingencies
Bridget
Actual
Variance
$ 743,165
743,372
(207)
155,137
167,663
(12,526)
424,938
445,941
(21,003)
56,148
113,851
(57,703)
192,424
238,839
(46,415)
(205,905)
42,801
(248,706)
43,073
60,325
(17,252)
690,173 693,609 (3,436)
11,708,299 11,746,724 (38,425)
469,842 (469,842)
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.
38
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
X25) Due From and To Other Funds
Current interfund receivables and payables balances at June 30, 1999 are as follows:
Current
Current
Interfund
Interfund
Receivables
Payables
General Fund $785,357
77,715
Special Revenue Funds:
Local Law Enforcement Block Grant - 575
Low/Mod Income Housing PA No. 1 _ 15
Low/Mod Income Housing PA No. 2 10
Low/Mod Bond - PA No. 1 - 626,800
Low/Mod Bond - PA No. 2 - 148,581
Debt Service Funds:
Redevelopment Agency PA No. 1 - 591
Financing Authority - 9,305
Capital Projects Funds:
Capital Improvement Fund 91,379
Redevelopment Agency PA No. 1 - 47
Redevelopment Agency PA No. 2 591 24
Financing Authority - 13,664
$877.327 877,327
26 Notes Receivable
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, 1999, the
outstanding balance plus accrued interest is $2,556,508. At June 30, 1999, the total
outstanding balance of all notes receivable (including other notes aggregating $112,343)
is $2,668,851.
39
CITY OF LA QUINTA
Notes to the Financial Statements
(Continued)
(27) Proposition 218
Recent developments, including the voters' enactment of Proposition 218 in November
1996, have affected the manner in which local governments may impose, extend or
increase certain taxes, assessments and property -related fees. The more significant
changes which may affect local government revenue streams are as follows:
1. If there is a majority protest against an assessment, the assessment cannot be
imposed. This means that increasing an assessment requires majority voter
approval.
2. Certain fees are defined as property -related. Some property -related fees require
voter approval at an election; others allow for a majority protest but do not require
an election. Property -related fees must comply with certain substantive
provisions of Proposition 218, which generally limit the amount of fees.
3. Any local tax, assessment, fee or charge is subject to reduction or repeal by
initiative.
Uncertainty exists as to the scope and impact of these developments on local government
revenue streams. Future legislation and litigation may resolve some of these
uncertainties.
(28) Construction Commitments
The following material construction commitments existed at June 30, 1999:
Expenditures as of Remaining
Project Name Jtine 30. 1999 Commitments
City Entrance Monuments
$ 31,914
306,170
Traffic Signal Project
23,371
339,129
Washington Storm Drain
-
397,690
Village Development
23,331
476,669
Miles/Washington St. Widening
1,734,052
573,268
Civic Center Campus
49,871
651,111
Washington St. Widening/Ave. 50
279,437
937,455
Phase V -D Project
47,275
954,624
Phase V-A Project
27,458
1,161,192
Auto Mall Improvements
294,151
1,505,849
Catellus Senior Apartments
487,673
1,515,004
Phase V -C Project
76,147
2,274,813
Catellus Single Family Housing
2,046,245
3,503,603
Phase V -B Project
45,766
4,042,725
CVAG/Jefferson Project
279,532
8,084,468
40
REQUIRED SUPPLEMENTARY INFORMATION
41
CITY OF LA QUINTA
Required Supplementary Information
Year ended June 30, 1999
Risk Mitigation for the Year 2000 Issue
The City is in the process of evaluating its computer systems and other equipment that may
contain embedded chips to ascertain which of these might be impacted by a failure to properly
recognize and process transactions dated on or after January 1, 2000. As of June 30, 1999, the
unexpended portion of contracts entered into by the City with various vendors to replace or
upgrade its computer systems and other equipment to reduce the risk of year 2000 difficulties
was approximately $30,950. Additional amounts may be expended for the City's year 2000
assessment, remediation, and testing activities, as well as amounts that may need to be expended
after January 1, 2000 to correct problems not previously detected and corrected by the City.
Because of the unprecedented nature of the year 2000 issue, it is not possible to provide
assurances that the City has or will achieve complete year 2000 compliance, even after
completing all planned year 2000 corrective actions and related testing. Nor can the City
determine the effect, if any, on City operations should entities external to the City (other
governments, significant vendors, suppliers, service providers, customers, taxpayers, businesses,
etc.) fail to achieve year 2000 compliance in a timely manner. An audit is not designed to
substantiate the assertions of management with respect to this issue or to evaluate the adequacy
of management's plans with respect to this issue. Equipment and systems considered by
management to be critical to conducting operations include the following:
Data Processing Systems - The data processing systems under evaluation include
Accounting Systems, Animal License Software, Builders Square Program, Questas City
Clerk Program, and the Code Track Program. As of June 30, 1999, the City has assessed
one hundred percent of their data processing systems and identified options for replacing
obsolete systems or locating new vendors to correct non-compliant systems. Ninety
percent of data processing hardware and software systems have been tested for year 2000
compliance. Roughly ninety-five percent of upgrades have been implemented for non-
compliant data processing systems, with the remaining five percent to be completed by
July 1999.
Non -Data Processing Systems - The non -data processing systems under evaluation
include Heating and Air Conditioning, Phone Systems, Mobile Phones, Street Lights,
Traffic Signals, Irrigation Software, Stadium Lights, Drainage Pumps, and the Civic
Center Alarm System. As of June 30, 1999, the City has assessed ninety percent of non -
data processing systems for year 2000 compliance. The systems still to be assessed for
year 2000 compliance include mobile phones, traffic signals and the Civic Center alarm
system. Assessment of non -data processing systems will continue through July 1999.
The City has identified options for replacing systems or locating new vendors to correct
non-compliant systems for ninety percent of non -data processing systems. Seventy
percent of non -data processing systems have been tested for year 2000 compliance, with
the exception of traffic signals, Civic Center alarms, and mobile phones. As of June 30,
1999, fifteen percent of non -data processing systems have been upgraded, and the
remaining eighty-five percent will be upgraded by September 1999.
42
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.
43
(This page intentionally left blank)
44
CITY OF LA QUINTA
General Fund
Schedule of Expenditures - Budget and Actual
General government:
Legislative
City manager
Economic development
Personnel
Fiscal services
Central services
City clerk
Total general government
Public safety:
Police
Building and safety administrative
Code compliance
Animal control
Building
Emergency services
Fire
Civic center building
Total public safety
Community services:
Senior center
Parks and recreation administration
Parks and recreation programs
Total community services
Planning and development:
Community development administration
Current planning
Total planning and development
Public works:
Public works administration
Development and traffic
Maintenance/operations - St.
Maintenance/operations - L & L
Capital projects administration
Total public works
Total expenditures
Year ended June 30, 1999
45
Budget
$ 475,800
296,566
743,165
37,965
292,978
638,256
235,155
A rfi in]
466,685
258,637
743,372
14,369
287,761
489,462
212,955
Variance -
Favorable
(Unfavorable
9,115
37,929
(207)
23,596
5,217
148,794
22,200
2,719,885
2,473,241
246,644
3,095,828
2,857,621
238,207
178,123
167,001
11,122
378,010
323,349
54,661
155,137
167,663
(12,526)
424,938
445,941
(21,003)
71,540
61,024
10,516
19,000
11,382
7,618
436,505
434,313
2,192
4,759,081
4,468,294
290,787
222,200
203,904
18,296
504,881
477,192
27,689
53,150
51,645
1,505
780,231
732,741
47,490
373,043
250,888
122,155
577,050
375,186
201,864
950.093
626,074
324,019
56,148
113,851
(57,703)
714,075
673,841
40,234
786,903
477,318
309,585
192,424
238,839
(46,415)
(205,905)
42,801
(248,706)
1,543,645
1,546,650
(3,005)
$ 10,752,935
9,847,000
905,935
SPECIAL REVENUE FUNIS
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 Special Revenue Funds:
State Gas Tax Fund - To account for gasoline allocations made by the State of California. These
revenues are restricted by the State to expenditures for street -related purposes only.
Community Service -Projects Fund - To account for the accumulation of resources for parks and
other community services projects. Capital projects to be funded from this source will be
budgeted and expended in a separate capital project fund.
Federal Assistance Fund - To account for revenues from the Community Development Block
Grants received from the Federal Government and the expenditures of those resources.
Intermodal Surface Transportation Efficiency Act (ISTI= A) Ftitul - 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.
La Ouinta Public SafetOfficer Fund - To account for contributions to be distributed to public
safety officers disabled or killed in the line of duty.
Village Parking Fund - To account for the accumulation of resources provided through developer
fees to facilitate parking and traffic flow in that area of the City known as "The Village". Capital
projects funded from this source will be budgeted in a separate capital projects fund.
South Coast Air Quality Fund - To account for contributions from the South Coast Air Quality
Management District. Use of such contributions is limited to reduction and control of airborne
pollutants.
Local Law Enforcement Block Grant (LLEBG) 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.
Redevelopment Agency, Low and Moderate Income Housing P.A. No. 1 and No. 2 Funds - To
account for the required 20% set aside of property tax increments that is legally restricted for
increasing or improving housing for low and moderate income households.
46
SPECIAL REVENUE FUNDS, (CONTINUED)
Redevelol2ment 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.
47
CITY OF LA QUINTA
Special Revenue Funds
Combining Balance Sheet
June 30, 1999
48
Community
Lighting
State Service Federal
and
Public
Gas Tax Projects Assistance
ISTEA Landscape
SLEBG
Quimby
Safety
Assets
Cash and investments
$ 107,327 - -
- 85,748
60,858
198,378
6,478
Cash with fiscal agent
- - -
- -
-
-
-
Accounts receivable
- - -
-
-
-
Interest receivable
- - -
- -
-
-
-
Notes receivable
- -
- -
-
-
-
Due from other funds
- - -
- -
-
-
-
Due from other
governments
- - -
- 19,275
-
-
-
Advances to other funds
- - -
- -
-
-
-
Total assets
$ 107,327 - -
- 105,023
60,858
198,378
6,478
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ - -
- -
-
-
-
Deposits payable
- - -
- 34,840
-
4,168
Due to other funds
- - -
- -
-
-
-
Total liabilities
- -
- 34,840
-
-
4,168
Fund balances:
Reserved for:
Bond projects
- - -
- -
-
-
-
Advances to other funds
Notes receivable
- - -
- -
-
-
-
Unreserved:
Designated for
operations/
projects/transfers
107,327 -
- 70,183
60,858
198,378
2,310
Undesignated
- - -
- -
-
-
-
Total fund balances
107,327 - -
_ 70,183
60,858
198,378
2,310
Total liabilities and
fund balances
$ 107,327 - -
- 105,023
60,858
198,378
6,478
48
- - 3,839,690 2,270,504 6,110,194 8,129,831
511,903 39,135 - - 551,038 551,038
- - - 2,556,508 - - - 2,556,508 2,420,750
28,625 18,564 - 3,199,870 2,803,980 - - 6,490,095
5,839,915
Low/
Low/
28,625 18,564 - 6,268,281 2,843,115 3,346,765 2,151,326 15,095,732
16,860,812
28,625 18,564 575 6,302,827 2,851,044 3,979,736 2,307,689 15,967,124
17,189,960
Moderate
Moderate
Low/
Low/
Income
Income
Moderate
Moderate
Village South Coast
Housing-
Housing-
Bond-
Bond-
Totals
Parking Air Quality
LLEBG
PA No. 1
PA No. 2
PA No. 1
PA No. 2
1999
1998
28,625 18,564
575
3,167,751
2,782,700
-
-
6,457,004
5,962,772
- -
-
-
3,839,690
2,270,504
6,110,194
8,129,831
- -
-
44,006
-
-
-
44,006
23,301
- -
-
22,659
29,209
140,046
37,185
229,099
34,626
- -
-
2,556,508
-
-
-
2,556,508
2,420,750
- -
-
-
-
-
-
62,192
- -
-
-
-
-
-
19,275
5,450
- -
-
511,903
39,135
-
-
551,038
551,038
28,625 18,564
575
6,302,827
2,851,044
3,979,736
2,307,689
15,967,124
17,189,960
- -
-
18,935
7,919
6,171
7,782
40,807
54,988
- -
-
15,596
-
-
-
54,604
49,266
- -
575
15
10
626,800
148,581
775,981
224,894
- -
575
34,546
7,929
632,971
156,363
871,392
329,148
- - 3,839,690 2,270,504 6,110,194 8,129,831
511,903 39,135 - - 551,038 551,038
- - - 2,556,508 - - - 2,556,508 2,420,750
28,625 18,564 - 3,199,870 2,803,980 - - 6,490,095
5,839,915
- - - - - _(492,925)(119,178) (612,103)
(80,722)
28,625 18,564 - 6,268,281 2,843,115 3,346,765 2,151,326 15,095,732
16,860,812
28,625 18,564 575 6,302,827 2,851,044 3,979,736 2,307,689 15,967,124
17,189,960
49
CITY OF LA QUINTA
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1999
Community Lighting
Gas Service Federal and Public
Tax Proj cots Assistance ISTEA Landscape SLEBG Quimby Safety
Revenues:
Taxes
$ -
- _ _
-
_
_
_
Developer fees
-
- - -
7,000
-
5,520
-
Intergovernmental
384,524
- 30,000 91,639
-
46,246
-
-
Investment income
4,906
- - -
1,655
2,495
10,422
310
Special assessments
-
- - -
759,273
-
-
-
Rental income
-
- - -
-
-
-
-
Gain (loss) on sale of land
-
- - -
-
-
-
-
Total revenues
389,430
30,000 91,639
767,928
48,741
15,942
310
Expenditures:
Current:
Public safety
-
- - -
-
-
-
-
Planning and
development
-
- - -
-
-
-
-
Public works
368,800
- - -
801,700
-
-
-
Total expenditures
368,800
- - -
801,700
-
-
-
Excess (deficiency) of
revenues over (under)
expenditures
20,630
- 30,000 91,639
(33,772
48,741
15,942
310
Other financing sources (uses):
Operating transfers in
-
- - -
-
-
-
2,000
Operating transfers out
-
(5,810) (30,000} 9( 1,639
131,333)
693)
-
-
Total other financing
sources (uses)
-
(5,810) (317,000) 91,639
(131,333)
(693)
-
2,000
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
20,630
(5,810) -
(165,105)
48,048
15,942
2,310
Fund balances at beginning
ofyear
86,697
5,810 - -
235,288
12,810
182,436
-
Fund balances at end of year
$ 107,327
- - -
70,183
60,858
198,378
2,310
50
- - - - 33,388
- - 2,127,114 471,575 45,011 60,325 2,704,025 2,729,873
- - - - - - 1,170,500 1,188,322
2,127,114 471,575 45,011 60,325 3,874,525 3,951,583
1,510 19,400 28,524 1,349,931 1,307,087 445,021 79,590 3,404,553 2,591,796
- - 9,781 - - - - 11,781 3,280,377
69,205 (48,523) 1,099,888 (202,749} 2,392,558) (1,109,016) (5,181,414) (9,412,442)
69,205 (38,742) 1,0( 99,888) 202,749 (2,392,558) 1,109,016 (5,169,633) (6,132,065)
1,510
(49,805)
(10,218) 250,043
Low/
Low/
(1,029,426)
(1,765,080)
(3,540,269)
27,115
68,369
10,218 6,018,238
1,738,777
Moderate
Moderate
Low/
Low/
28,625
18,564
- 6,268,281
2,843,115
3,346,765
Income
Income
Moderate
Moderate
Village
South Coast
Housing-
Housing-
Bond-
Bond-
Totals
Parkin
Air Qwility
LLEBG
PA No. 1
PA No. 2
PA No. 1
PA No. 2
1999
1998
-
-
-
2,575,456
1,017,016
-
-
3,592,472
3,253,847
-
-
-
15,911
622,304
-
-
650,735
178,713
-
15,810
27,958
-
-
-
-
596,177
1,200,519
1,510
3,590
566
275,497
139,342
490,032
139,915
1,070,240
728,523
-
-
-
-
-
-
-
759,273
809,041
-
-
-
414,236
-
-
-
414,236
395,414
-
-
-
195,945
-
-
-
195,945
22,678
1,510
19,400
28,524
3,477,045
1,778,662
490,032
139,915
7,279,078
6,543,379
- - - - 33,388
- - 2,127,114 471,575 45,011 60,325 2,704,025 2,729,873
- - - - - - 1,170,500 1,188,322
2,127,114 471,575 45,011 60,325 3,874,525 3,951,583
1,510 19,400 28,524 1,349,931 1,307,087 445,021 79,590 3,404,553 2,591,796
- - 9,781 - - - - 11,781 3,280,377
69,205 (48,523) 1,099,888 (202,749} 2,392,558) (1,109,016) (5,181,414) (9,412,442)
69,205 (38,742) 1,0( 99,888) 202,749 (2,392,558) 1,109,016 (5,169,633) (6,132,065)
1,510
(49,805)
(10,218) 250,043
1,104,338
(1,947,537)
(1,029,426)
(1,765,080)
(3,540,269)
27,115
68,369
10,218 6,018,238
1,738,777
5,294,302
3,180,752
16,860,812
20,401,081
28,625
18,564
- 6,268,281
2,843,115
3,346,765
2,151,326
15,095,732
16,860,812
51
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, 1999
52
Variance -
Favorable
1998
Buckler
ActualUnfavorable
Actual
Revenues:
Intergovernmental
$ 366,100
384,524
18,424
354,644
Investment income
2,700
4,906
2,206
3,080
Total revenues
368,800
389,430
20,630
357,724
Expenditures:
Current:
Public works
368,800
368,800
-
336,100
Total expenditures
368,800
368,800
-
336,100
Excess (deficiency) of revenues
over (under) expenditures
-
20,630
20,630
21,624
Fund balances at beginning of year
86,697
86,697
-
65,073
Fund balances at end of year
$ 86,697
107,327
20,630
86,697
52
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, 1999
Revenues:
Investment income
Total revenues
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 1998
Budget Actual Wavorahle Actual
$ - - - 25,100
25,100
5,810 5,810 - 563,383
5,810 5,810 - 563,383
(5,810) (5,810) - (538,283)
5,810 5,810 - 544,093
$ - - - 5,810
53
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, 1999
Revenues:
Intergovernmental
Investment Income
Total revenues
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
Budget Actual (Unfavorable)
1998
Actual
$ 228,400 30,000 (198,400) 334,732
1,100 - 1,100 -
229,500 30,000 199,500 334,732
(130,000) 30,000
(130,000 30,000
99,500 -
$ 99,500 -
54
100,000 334,732
100,000 334,732
(99,500)
99,500)
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, 1999
Revenues:
Intergovernmental
Investment Income
Total revenues
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
Budget Actual (Unfavorable)
$ 114,465 91,639
114,465 91,639
114,465 91,639
(114,465 91,639
(22, 826)
(22,826
1998
Actual
410,034
5,501
22,826 415,535
22,826 415,535
55
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, 1999
Revenues:
Developer fees
Investment income
Special assessments
Total revenues
Expenditures:
Current:
Public works
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
Fund balances at beginning of year
Fund balances at end of year
801,700 801,700
801,700 801,700
- 33,772
144,038 131,333
144,038 131,333
(144,038)
(165,105)
Variance -
235,288
$ 91,250
Favorable
Budget
Actual
(Unfavorable)
$ -
7,000
7,000
5,100
1,655
(3,445)
796,600
759,273
37,327
801,700
767,928
33,772
801,700 801,700
801,700 801,700
- 33,772
144,038 131,333
144,038 131,333
(144,038)
(165,105)
235,288
235,288
$ 91,250
70,183
56
33,772
12,705
12,705
1998
Actual
6,370
809,041
815,411
852,222
852,222
36,811
(36,811)
272,099
235,288
CITY OF LA QUINTA
Special Revenue Funds
SLEBG
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
Revenues:
Intergovernmental
Investment income
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
Fund balances at beginning of year
Fund balances at end of year
46,246 48,741
58,937 693
58,937 693
(12,691) 48,048
12,810 12,810
$ 119 60,858
57
33,388
- 33,388
2,495 10,858
58,244 -
58,244 -
60,739
60,739
10,858
1,952
12,810
Variance -
Favorable
1998
Budget Actual
nfavorable
Actual
$ 46,246 46,246
-
43,636
- 2,495
2,495
610
46,246 48,741
2,495
44,246
46,246 48,741
58,937 693
58,937 693
(12,691) 48,048
12,810 12,810
$ 119 60,858
57
33,388
- 33,388
2,495 10,858
58,244 -
58,244 -
60,739
60,739
10,858
1,952
12,810
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, 1999
58
Variance -
Favorable
1998
Budc7ct
Actual
(Unfavorable)
Actual
Revenues:
Developer fees
$ 20,000
5,520
(14,480)
167,586
Investment income
2,700
10,422
7,722
3,352
Total revenues
22,700
15,942
(6,758)
170,938
Fund balances at beginning of year
182,436
182,436
-
11,498
Fund balances at end of year
205,136
198,378
(6,758
182,436
58
CITY OF LA QUINTA
Special Revenue Funds
Public Safety Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
Revenues:
Investment Income
Total revenues
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
2,000 2,000
2,200 2,310
$ 24200 2,310
59
1998
Actual
Variance -
Favorable
Budget
Actual
Unfavorable
$ 200
310
110
200
310
110
2,000
2,000
-
2,000 2,000
2,200 2,310
$ 24200 2,310
59
1998
Actual
CITY OF LA QUINTA
Special Revenue Funds
Village Parking
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
60
Variance -
Favorable
1998
Budget
Actual
(Unfavorable)
Actual
Revenues:
Investment income
$ 1,100
1,510
410
1,098
Total revenues
1,100
1,510
410
1,098
Fund balances at beginning of year
27,115
27,115
-
26,017
Fund balances at end of year
$ 2.8,215
28,625
410
27,115
60
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, 1999
Revenues:
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 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
13,797 - 13,797 -
13,797 - 13,797 -
37,296
19,400
Variance -
(92,433
69,205
(92,433)
Favorable
1998
Budget
Actual
(Unfavorable)
Actual
$ 48,993
15,810
(33,183)
25,055
2,100
3,590
1,490
2,206
51,093
19,400
J31,693
27,261
13,797 - 13,797 -
13,797 - 13,797 -
37,296
19,400
(92,433
69,205
(92,433)
69,205
(55,137)
68,369
$ 13,232
61
(49,805)
18,564
17,896 27,261
23,228 -
23,228 -
5,332
5,332
27,261
41,108
68,369
CITY OF LA QUINTA
Special Revenue Funds
LLEBG
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
Revenues:
Intergovernmental
Investment Income
Total revenues
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
31,493 38,742 7,249 (39,020
(3,535) (10,218) (6,683)
10,218 10,218 -
$ 6,683- 6,683
62
(9,316)
19,534
10,218
Variance -
Favorable
1998
Budget
Actual
(Unfavorable)
Actual
$ 27,958
27,958
-
28,474
-
566
566
1,230
27,958
28,524
566
29,704
9,206
9,781
575
-
40,699
48,523
7,824
39,020
31,493 38,742 7,249 (39,020
(3,535) (10,218) (6,683)
10,218 10,218 -
$ 6,683- 6,683
62
(9,316)
19,534
10,218
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, 1999
Revenues:
Taxes
Developer fees
Investment income
Rental income
Gain (loss) on sale of land
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of revenues
and other fmancing sources
over (under) expenditures and
other financing uses
Fund balances at beginning of year
Fund balances at end of year
2,560,649
2,127,114
Variance -
2,560,649
2,127,114
Favorable
Budget
Actual
Unfavorable
(1,738,801
$ 2,492,277
2,575,456
83,179
-
15,911
15,911
247,500
275,497
27,997
341,000
414,236
73,236
150,000
195,945
45,945
3,230,777
3,477,045
246,268
2,560,649
2,127,114
433,535
2,560,649
2,127,114
433,535
670,128
1,349,931
679,803
(1,738,801
1,099,888)
638,913
(1,738,801)
(1,099,888}
638,913
(1,068,673)
6,018,238
$ 4,949,565
63
250,043
6,018,238
6,268,281
1,318,716
1,318,716
1998
A ..---I
2,432,379
11,127
105,590
395,414
(22,678)
2,921,832
1 -Inc cin
1,795,539
1,126,293
212,193
(1,742,501)
(1,530,308
(404,015)
6,422,253
6,018,238
CITY OF LA QUINTA
Special Revenue 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, 1999
Revenues:
Taxes
Developer fees
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
838,376
471,575
Variance -
247,158
838,376
471,575
Favorable
1998
Budget
Actual
_QLr1favorable)
Actual
630,161
$ 936,973
1,017,016
80,043
821,468
-
622,304
622,304
-
20,000
139,342
119,342
55,851
956,973
1,778,662
821,689
877,319
838,376
471,575
366,801
247,158
838,376
471,575
366,801
247,158
118,597
1,307,087
1,188,490
630,161
-
-
-
265,517
(1,480,886)
(202,749)
1,278,137
(339,341
(1,480,886)
(202,749
1,278,137
(73,824
(1,362,289) 1,104,338 2,466,627 556,337
1,738,777 1,738,777 - 1,182,440
$ 376,488 2,843,115 2,466,627 1,738,777
64
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, 1999
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 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 -
45,011
Favorable
1998
Budget Actual (Unfavorable)
Actual
$ 135,000 490,032 355,032
416,525
135,000 490,032 355,032
416,525
59,328
45,011
14,317
456,081
59,328
45,011
14,317
456,081
5,294,302
75,672
445,021
369,349
39,556
5,623,442
2,392,558)
3,230,884
(3,016,305)
5,623,442
2,392,558
3,230,884
3,016,305)
(5,547,770)
(1,947,537) 3,600,233
(3,055,861)
5,294,302
5,294,302 -
8,350,163
$ (253,468)
3,346,765 3,600,233
5,294,302
65
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, 1999
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 -
60,325
Favorable
1998
Budget Actual (Unfavorable)
Actual
17,252
$ 20,000 139,915 119,915
102,010
20,000 139,915 119,915
102,010
43,073
60,325
(17,252)
231,095
43,073
60,325
17,252
231,095
(23,073
79,590
102,6631(
29,085)
-
-
-
2,802,667
2,990,542)
(1,109,016)
1,881,526
(2,957,681
2,990,542
1,109,016
1,881,526
155,014
(3,013,615) (1,029,426) 1,984,189 (284,099)
3,180,752 3,180,752 - 3,464,851
$ 167,137 2,151,326 1,984,189 3,180,752
66
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 the following Debt Service Funds:
La Quinta Financing Authority Furacl - 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.
67
CITY OF LA QUINTA
Debt Service Funds
Combining Balance Sheet
June 30, 1999
Liabilities and Fund Balances
Liabilities:
Accounts payable
Financing
Redevelopment
Redevelopment
Totals
4,340
Authority
Agency -PA No. 1
Agency -PA No. 2
1999 1998
Assets
504,731
Due to other funds
9,305
-
Cash and investments
$ -
2,996,002
645,334
3,641,336 5,272,572
Cash with fiscal agent
29
183,946
-
183,975 74,235
Accounts receivable
504
-
-
504 11
Interest receivable
-
26,453
11,012
37,465 -
Due from other
Fund balances:
governments
-
11
-
11 -
Total assets
$ 533
3,206,412
656,346
3,863,291 5,346,818
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ -
4,403
-
4,403
4,340
Accrued expenses
-
-
-
-
504,731
Due to other funds
9,305
-
591
9,896
-
Advances from other
funds
-
511,903
39,135
551.038
551,038
Total liabilities
9,305
516,306
39,726
565,337
1,060,109
Fund balances:
Reserved for:
Debt service
-
2,690,106
616,620
3,306,726
4,286,709
Unreserved:
Undesignated
(8,772)
-
-
(8,772
-
Total fund balances
(8,772)
2,690,106
616,620
3,297,954
4,286,709
Total liabilities
and fund balances
$ 533
3,206,412
656,346
3,863,291
5,346,818
68
CITY OF LA QUINTA
Debt Service Funds
Combining Stateincnt of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1999
Revenues:
Taxes
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 advances
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures and
other financing uses
Fund balances at beginning
of year
Fund balances (deficit)
at end of year
Financing Redevelopment Redevelopment
Authority Agency -PA No. 1Agency-PA No.2
Totals
1999 1998
$ -
10,301,824
4,068,063
14,369,887
13,015,387
264
131,849
81,013
213,126
110,618
T 684,573
-
-
684,573
734,623
684,837
10,433,673
4,149,076
15,267,586
13,860,628
9,036
193,047
68,483
270,566
209,588
245,000
2,092,128
1,067,872
3,405,000
1,960,000
439,573
3,578,729
982,938
5,001,240
5,034,169
-
5,882,820
2,845,262
8,728,082
9,255,220
693,609
11,746,724
42964,555
17,404,888
16,458,977
(8,772 (1,313,051)
815,479
(2,137,302)
(2,598,349)
- 1,366,514
202,749
1,569,263
2,965,779
- (511,509)
(742,609)
(1,254,118)
(910,721)
- 371,521
461,881
833,402
810,006
- 1,226,526
(77,979)
1,148,547
2,865,064
(8,772) (86,525) (893,458) (988,755) 266,715
C
- 2,776,631 1,510,078 4,286,709 4,019,994
$ (8,772) 2,690,106 616,620 3,297,954 4,286,709
69
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, 1999
70
Variance -
Favorable
1998
Bu- dget
Actual
(Unfavorable)
Actual
Revenues:
Investment income
$ 12,400
264
(12,136)
-
Rental income
672,173
684,573
12,400
734,623
Miscellaneous
5,600
-
5,600
-
Total revenues
690,173
684,837
5,336
734,623
Expenditures:
Current:
Planning and development
5,600
9,036
(3,436)
6,427
Debt service:
Principal
245,000
245,000
-
285,000
Interest
439,573
439,573
-
449,623
Total expenditures
690,173
693,609
3,436
741,050
Excess (deficiency) of revenues
over (under) expenditures
-
8,772
8,772
6,427
Other financing sources (uses):
Operating transfers in
-
-
-
7,897
Total other financing
sources (uses)
_
-
-
7,897
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
-
(8,772)
(8,772)
1,470
Fund balances (deficit) at
beginning of year
-
-
-
1,470
Fund balances (deficit) at end of year
$ -
8,772
8,772
-
70
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, 1999
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 1998
Budget Actual (Unfavorable) Actual
$ 9,969,108 10,301,824 332,716 9,729,515
- 131,849 131,849 29,829
9,969,108 10,433,673 464,565 9,759,344
212,000
193,047
18,953
152,565
2,090,852
2,092,128
(1,276)
1,482,979
3,573,754
3,578,729
(4,975)
3,496,109
5,831,693
5,882,820
51,127)
6,251,259
11,708,299
11,746,724
A38,425
11,382,912
(1,739,191)
1,313,051)
426,140
(1,623,568)
1,738,801
1,366,514
(372,287)
1,796,304
(511,509)
(511,509)
-
(368,565)
371,521
371,521
-
364,985
1,598,813
1,226,526
372,287
1,792,724
(140,378) (86,525) 53,853 169,156
2,776,631 2,776,631 - 2,607,475
$ 2,636,253 2,690,106 53,853 2,776,631
71
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, 1999
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 1998
Budget Actual (Unfavorable) Actual
$ 3,747,891 4,068,063 320,172 3,285,872
- 81,013 81,013 80,789
3,747,891 4,149,076 401,185 3,366,661
68,350
68,483
(133)
50,596
1,069,148
1,067,872
1,276
192,021
987,913
982,938
4,975
1,088,437
2,844,245
2,845,262
(1,017
3,003,961
4,969,656
4,964,555
5,101
4,335,015
1,221,765) (815,479 406,286 (968,354)
338,674
202,749 (135,925)
1,161,578
(742,609)
(742,609) -
(542,156)
461,881
461,881 -
445,021
57,946
77,979 (135,925)
1,064,443
(1,163,819) (893,458) 270,361 96,089
1,510,078 1,510,078 - 1,413,989
$ 346,259 616,620 270,361 1,510,078
72
CAPITAL PROJECTS FUNDS
Capital projects funds account for the financial resources to be used for the acquisition,
construction or improvements of major capital facilities and infrastructure.
The City of La Quinta has the following 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.
Assessment District 97-1 _La Uuinta Norte Construction Fund - To account for the bond proceeds
and other funding that will be used for improvements to Assessment District 97-1.
Financing Authority Capital Projects Fuad - To account for the Public Financing Authority bond
proceeds that will be used for specific projects and programs of the City.
Redevelo meat Agency, Capital Projects Funds Area I and 2 - To account for the bond
proceeds, interest and other funding that will be used for development, planning, construction
and land acquisition.
73
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
Retainage payable
Due to other funds
Advances from 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
CITY OF LA QUINTA
Capital Projects Funds
Combining Balance Sheet
June 30, 1999
$ 9,098 545,225 -
- 899,524 - -
163,467 - -
- - 13,664
- 835,969 - -
9,098 2,444,185 - 13 664
- - 180,794 594,208
9,635,328 - - -
- - - (12,953)
9,635,328 - 180,794 581,255
$ 9,644,426 2,444,185 180,794 594,919
74
A.D. 97-1
Financing
Capital
LQ Norte
Authority
Infastructure
Improvement
Construction
Projects
$ 9,543,606
2,352,806
180,794
711
-
-
-
594,208
100,820
-
-
-
-
91,379
-
-
$ 9,644,426
2,444,185
180,794
594,919
$ 9,098 545,225 -
- 899,524 - -
163,467 - -
- - 13,664
- 835,969 - -
9,098 2,444,185 - 13 664
- - 180,794 594,208
9,635,328 - - -
- - - (12,953)
9,635,328 - 180,794 581,255
$ 9,644,426 2,444,185 180,794 594,919
74
Redevelopment
Redevelopment
Totals
8,479,943
-Agency-PA No.l
Agency -PA No -2
1999
1998
1,004,702
1,454,970
12,095,000
1,000,971
1,383,380
14,462,268
7,854,997
7,307,105
602,825
8,504,138
8,479,943
-
60,900
60,900
81,258
9,974
13,645
124,439
142,956
-
112,343
112,343
108,217
-
591
91,970
306,361
8,318,050
2,173,684
2.3,356,058
16,973,732
6,196
3,522
564,041
379,160
-
-
899,524
373,635
-
-
163,467
259,532
47
24
13,735
103,844
-
-
835,969
-
6,243
3,546
2,476,736
1,116,171
7,307,105
602,825
8,684,932
8,479,943
-
112,343
112,343
108,217
1,004,702
1,454,970
12,095,000
7,281,216
-
-
(12,953)
(11,815)
8,311,807
2,170,138
20,879,322
15,857,561
8,318,050
2,173,684
23,356,058
16,973,732
75
CITY OF LA QUINTA
Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 1999
Revenues:
Developer fees
Intergovernmental
Investment income
Special assessments
Litigation settlement proceeds
Total revenues
Expenditures:
Current:
Planning and development
Capital projects
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
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
Residual equity transfer
Fund balances at end of year
91,639 5,398,340 -
(829,675) - -
(738,036) 5,398,340
3,994,586
5,640,742
$ 9,635,328
76
705,262
705,262
279,557
(98,763)
180,794
AD. 97-1
Capital
LQ Norte
Infastructure
Im rovement
Construction
$ 4,417,323
240,683
-
-
1,133,477
-
520,694
-
5,644
-
-
38,493
4,938,017
1,374,160
44,137
-
469,842
205,395
6,772,500
-
205,395
6,772,500
469,842
4,732,622
(5,398,340)
(425,705)
91,639 5,398,340 -
(829,675) - -
(738,036) 5,398,340
3,994,586
5,640,742
$ 9,635,328
76
705,262
705,262
279,557
(98,763)
180,794
Financing Redevelopment Redevelopment
Authority Agency -PA No. l Agency -PA No.2 1999
Totals
1998
- 5,000 4,663,006 2,961,792
- - - 1,133,477 1,167,522
40,721 164,275 110,435 841,769 540,637
- - - 38,493 -
- 821,589 - 821,589 204
40,721 985,864 115,435 7,498,334 4,670,155
- 356,105
321,410
1,147,357
651,832
- -
-
6,977,895
7,588,933
- 356,105
321,410
8,125,252
8,240,765
4M21 629,759
(205,975
(626,918)
(3,570,610)
- 655,259
742,609
6,887,847
6,579,703
(48,770) (278,887)
(688,335)
(1,845,667)
(2,366,728)
- -
-
705,262
21,565,688
- -
-
-
(13,430,939)
(48,770) 376,372
54,274
5,747,442
12,347,724
(8,049) 1,006,131 (151,701) 5,120,524 8,777,114
589,304 7,305,676 2,321,839 15,857,561 7,080,447
- - - (98,763) -
581,255 8,311,807 2,170,138 20,879,322 15,857,561
77
CITY OF LA QUINTA
Capital Projects Funds
Infastructure Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
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
78
Variance -
Favorable
1998
Budget
Actual
(Unfavorable)
Actual
$ 1,066,500
4,417,323
3,350,823
2,429,742
187,200
520,694
333,494
224,923
1,253,700
4,938,017
3,684,317
2,654,665
205,395
205,395
-
220,379
205,395
205,395
-
220,379
1,048,305
4,732,622
3,684,317
2,434,286
-
91,639
91,639
-
(6,304,294)
(829,675
5,474,619
1,341,883
6,304,294)
(738,036
5,566,258
(1,341,883)
(5,255,989)
3,994,586
9,250,575
1,092,403
5,640,742
5,640,742
-
4,548,339
$ 384,753
9,635,328
9,250,575
5,640,742
78
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, 1999
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
79
Variance -
Favorable
1998
Budget
Actual
(Unfavorable)
Actual
$ 1,010,389
240,683
(769,706)
532,050
8,167,869
1,133,477
7,034,392)
1,167,522
9,178,258
1,374,160
(7,804,098)
1,699,572
36,147,237
6,772,500
29,374,737
7,368,554
36,147,237
6,772,500
29,374,737
7,368,554
(26,968,979)
(5,398,340)
21,570,639
5,668,982
26,968,979
5,398,340
(21,570,639)
5,668,982
26,968,979
5,398,340
(21,570,639)
5,668,982
79
CITY OF LA QUINTA
Capital Projects Funds
A.D. 97-1 LQ Norte Construction Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
80
Variance -
Favorable 1998
Budget
Actual
(Unfavorable) Actual
Revenues:
Investment income
$ 1,500
5,644
4,144
Special assessments
38,500
38,493
(7) -
Total revenues
40,000
44,137
4,137 -
Expenditures:
Current:
Planning and development
-
469,842
469,842 -
Total expenditures
-
469,842
469,842 -
Excess (deficiency) of revenues
over (under) expenditures
40,000
425,705
465,705 -
Other financing sources (uses):
Proceeds of bonds (net of
issuance costs)
745,000
705,262
(39,738) -
Total other financing
sources (uses)
745,000
705,262
(39,738) -
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
785,000
279,557
(505,443) -
Fund balances at beginning of year
-
-
- -
Residual equity transfer
-
98,763
(98,763) -
Fund balances at end of year
$ 785,000
180,794
(604,206 -
80
CITY OF LA QUINTA
Capital Projects Funds
Financing Authority Capital Projects Fund
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 1999
Revenues:
Investment Income
Total revenues
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
Budget Actual (Unfavorable)
$ - 40,721 40,721
40,721 40,721
567,376 48,770
567,376 48,770
1998
Actual
27,277
27,277
518,606 176,207
518,606 (176,207)
(567,376)
(8,049)
559,327 (148,930)
589,304
589,304
- 738,234
$ 21,928
581,255
559,327 589,304
81
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, 1999
Revenues:
Investment income
Litigation settlement proceeds
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 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 financing uses
Fund balances at beginning of year
Fund balances at end of year
Budget
$ 186,800
I ni nnn
2,468,946
2,468,946
(2,282,146)
511,509
(3,448,747)
Variance -
Favorable
Actual Unfavorable
164,275
821,589
985,864
i r/' Inc
(22,525)
821,589
799,064
/1 l l / nAl
1998
Actual
42,161
204
A,1 1/f
�^ ^n A
356,105 2,112,841 370,024
629,759 2,911,905 327,659
655,259 143,750 368,565
(278,887) 3,169,860 (52,358)
- 15,134,466
(7,822,592)
(2,937,238) 376,372 3,313,610 7,628,081
(5,219,384) 1,006,131 6,225,515 7,300,422
7,305,676 7,305,676 - 5,254
$ 2,086,292 8,311,807 6,225,515 7,305,676
82
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, 1999
Revenues:
Developer fees
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 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 financing uses
Fund balances at beginning of year
Fund balances at end of year
Variance -
Favorable 1998
Budget Actual (2nfavorable) Actual
$ 5,000 5,000 -
30,000 110,435 80,435 246,276
30,000 115,435 85,435 246,276
404,890
321,410
83,480
281,808
404,890
321,410
83,480
281,808
(374,890)
(205,975)
168,915
35,532
742,609 742,609 - 542,156
(2,326,628) (688,335) 1,638,293 (796,280)
- - - 6,431,222
5,608,347
(1,584,019) 54,274 1,638,293 568,751
(1,958,909) (151,701) 1,807,208 533,219
2,321,839 2,321,839 - 1,788,620
$ 362,930 2,170,138 1,807,208 2,321,839
83
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84
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.
Assessment District No. 88-1, 89-2, 94-1, 91-1, 92-1, 97-1 - To account for assessments paid to
the City for debt service payments on bond issues used to finance sewer improvements.
85
CITY OF LA QUINTA
Agency Funds
Combining Balance Sheet
June 30, 1999
. Arts in
Public Places
Assessment
District
No. 88-1
Assessment
District
No. 89-2
Assessment
District
No. 90-1
Assets
Cash and investments $ 642,487 199,919 228,604 257,208
Accounts receivable - - - -
Total assets $ 642,487 199,919 228,604 2.57,208
Liabilities
Accounts payable $ 423 - - -
Deposits payable 642,064 - - -
Due to bondholders - 199,919 228,604 257,208
Total liabilities $ 642,487 199,919 228,604 257,208
86
Assessment
District
No. 91-1
444,213
444,213
444,213
444,213
Assessment
District
No. 92-1
340,335
340,335
Assessment
District Totals
No. 97-1 1999 1998
101,502 2,214,268 1,774,777
- 266
101,502 2,214,268 1,775,043
- - 423 2,500
- - 642,064 391,034
340,335 101,502 1,571,781 1,381,509
340,335 101,502 2,214,268 1,775,043
87
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year ended June 30, 1999
88
Balance at
Balance at
July 1 1998
Additions
Deletions
June 30, 1999
ARTS IN PUBLIC PLACES
Assets
Cash and investments
$
393,534
330,236
(81,283)
642,487
Liabilities
Accounts payable
2,500
29,359
(31,436)
423
Deposits payable
391,034
423,753
(172,723)
642,064
Total liabilities
$
393,534
453,112
204,159)
642,487
ASSESSMENT DISTRICT NO. 88-1
Assets
Cash and investments
$
171,523
122,478
(94,082)
199,919
Liabilities
Due to bondholders
$
171,523
140,072
(111,676)
199,919
ASSESSMENT DISTRICT NO. 89-2
Assets
Cash and investments
$
201,485
171,136
(144,017)
228,604
Accounts receivable
266
-
(266)
-
Total assets
$
201,751
171,136
(144,283)
228,604
Liabilities
Due to bondholders
$
201,751
191,107
(164,254)
228,604
88
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
89
Balance at
Balance at
JuIy 1. 1998
Additions
Deletions
June 30, 1999
ASSESSMENT DISTRICT NO.
90-1
Assets
Cash and investments
$
232,727
160,763
(136,282)
257,208
Liabilities
Due to bondholders
$
232,727
178,232
(153,751)
257,208
ASSESSMENT DISTRICT NO.
91-1
Assets
Cash and investments
$
438,151
302,165
(296,103)
444,213
Liabilities
Due to bondholders
$
438,151
350,383
(344,321)
444,213
ASSESSMENT DISTRICT NO.
92-1
Assets
Cash and investments
$
337,357
249,670
(246,692)
340,335
Liabilities
Due to bondholders
$
337,357
295,275
(292,297)
340,335
89
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
Balance at Balance at
July h Additions Deletions June_30,_1999
ASSESSMENT DISTRICT NO. 97-1
Assets
Cash and investments $ - 116,918 15,416 101,502
Liabilities
Due to bondholders $ - 118,195 (16,693) 101,542
TOTALS -ALL AGENCY FUNDS
Assets
Cash and investments
$
1,774,777
1,453,366
(1,013,875)
2,214,268
Accounts receivable
266
-
(266)
-
Total assets
$
1,775,043
1,453,366
(1,014,141)
2,214,268
Liabilities
Accounts payable
$
2,500
29,359
(31,436)
423
Deposits payable
391,034
423,753
(172,723)
642,064
Due to bondholders
1,381,509
1,273,264
1,082,992
1,571,781
Total liabilities
$
1,775,043
1,726,376
1,287,151
2,214,268
90
GENERAL FIXED ASSETS ACCOUNT GROUP
91
CITY OF LA QUINTA
Comparative Schedule of General Fixed Assets - By Source
June 30, 1999
General fixed assets:
Land
Buildings
Leasehold improvements
Furniture and fixtures
Vehicles
Total general fixed assets
Investment in general fixed assets from:
General fund
Redevelopment agency
Total investment in general fixed assets
92
..4
$ 12,075,671
11,826,075
201,070
1,116,160
161,052
1998
13,280,910
11,790,129
201,070
1,014,292
161,052
$ 25,380,028 26,447,453
$ 15,146,522 15,008,708
10,233,506 11,438,745
$ 25,380,028 26,447,453
CITY OF LA QUINTA
Schedule of General Fixed Assets - By Function and Activity
June 30, 1999
93
Furniture
Leasehold
and
Function and Activitv
Land Buildings Improvements
Fixtures Vehicles
Totals
General government
$ 12,075,671 11,826,075 -
1,674 -
23,903,420
Legislative
- - -
20,484 -
20,484
City manager
- - -
171,206 -
171,206
Finance
- - -
119,250 -
119,250
City clerk
- - -
180,540 -
180,540
Community services
- - 201,070
67,348 -
268,418
Building and safety
- - -
209,118 161,052
370,170
Community
development
- - -
111,460 -
111,460
Public works
- - -
235,080 -
235,080
Total
$ 12,075,671 11,826,075 201,070
1,116,160 161,052
25,380,028
93
CITY OF LA QUINTA
Schedule of Changes in General Fixed Assets - By Function and Activity
Year ended June 30, 1999
94
Transfer to
Balance at
Proprietary
Balance at
July 1, 1998
Additions
Deletions
Funds
June 30 1999
General government
$ 25,071,039
37,620
(1,205,239)
-
23,903,420
Legislative
20,484
-
-
-
20,484
City manager
147,896
62,686
(39,376)
-
171,206
Finance
108,351
17,666
(6,767)
_
119,250
City clerk
187,183
862
(7,505)
-
180,540
Community services
292,274
12,152
(36,008)
-
268,418
Building and safety
289,031
81,139
-
-
370,170
Community development
106,567
4,893
-
-
111,460
Public works
224,628
166,945
-
(156,493
235,080
Totals
$ 26,447,453
383,963
(1,294,895)
(156,493)
25,380,028
94
STATISTICAL SECTION
95
CITY OF LA Qi INTA
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
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
1999
$2,473,241
4,468,294
1,546,650
732,741
626,074
-
$9,847,000
(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
CITY OF LA QUINTA
General Fund Revenue by Source
Last Ten Fiscal Years
TAKE 2
Fiscal Year
Licenses
Charges
Litigation
Ending
and
Inter-
for
Settlement
June 30
Taxes
Permits
Governmental
Services
Proceeds _
Interest
i4tisceIlaneous
Total
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
1999
58,101,191
1,951,981
1,466,788
1,965,219
740,985
1,569,796
74,529
515,870,489
(1) Previously included in Licenses and Permits
(2) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source
Source: City of La Quinta Audited Financial Statements
CITY OF LA QUINTA TABLE 3
Property Tax Levies and Collections
Last Nine 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
M
Percent of
Fiscal Year
Total
Current
Percent
Delinquent
Total
Ending
Tax
Tax
of Levy
Tax
Collections
June 30
Levy
Collection
Collected
Collections
to Tax Levy
1991
$280,339
256,297
91.4%
21,921
99.2%
1992
282,201
260,365
92.3%
25,703
101.4%
1993
282,630
244,731
86.6%
14,824
91.8%
1994
288,407
275,752
95.6%
900
95.9%
1995
549,273
487,043
88.7%
786
88.8%
1996
670,398
643,309
96.0%
2,312
96.3%
1997
824,073
760,350
92.3%
0
92.3%
1998
886,175
980,838
110.7%
0
110.7%
1999
$991,001.00
1,148,040
115.8%
0
115.8%
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
M
CITY OF LA QUINTA
Schedule of Net Taxable Value
Last Nine Fiscal Years
TABLE 4
Fiscal Year
Assessed
Less
Less
Net
Ending
Secured
Unsecured
Property
Property
Homeowner's
Taxable
June 30
Property
Propecv(
Value
Exemptions
Exemptions _
Value
1991
$1,278,307,230
7,156,844
1,285,464,074
3,474,595
(1)
1,281,989,479
1992
1,594,767,374
6,396,816
1,601,164,190
3,605,829
(1)
1,597,558,361
1993
1,773,323,102
6,943,559
1,780,266,661
3,814,434
(1)
1,776,452,227
1994
1,872,768,156
8,119,527
1,880,887,683
3,946,378
18,901,202
1,858,040,103
1995
1,927,834,908
22,822,285
1,950,657,193
4,357,954
20,518,400
1,925,780,839
1996
2,043,276,054
23,801,872
2,067,077,926
6,936,774
22,399,068
2,037,742,084
1997
2,164,204,951
22,511,720
2,186,716,671
6,919,376
22,407,418
2,157,389,877
1998
2,305,593,987
18,844,880
2,324,438,867
9,676,787
24,877,018
2,289,885,062
1999
$2,674,887,437
18,756,736
2,693,644,173
10,998,340
27,581,722
$2,655,064,111
Note: Detail prior to fiscal year 1991 not available
(1) Homeowner's exemption not available
Source: County of Riverside
we
General
Desert Sands Unified
College of the Desert
Coachella Valley Water District
Total Tax Rate
Source: County of Riverside
CITY OF LA QUINTA
Property Tax Rates - Direct and Overlapping Governments
Last Five Fiscal Years (per $100 of Assessed Value)
1998/99
1997/98
1996/97
1995/96
1994/95
1.00000
1.00000
1.00000
1.00000
1.00000
0.09750
0.09750
0.09750
0.09750
0.09750
0.00000
0.00000
0.00000
0.00000
0.00000
0.02080
0.02080
0.02080
0.02080
0.02080
1.11830
1.11830
1.11830
1.11890
1.11830
100
TABLE 5
CITY OF LA QUINTA
Special Assessment Billings and Collections
Last Nine Fiscal Years
Year
Special
Special
Ratio of
Ended
Assessment
Assessment
Collections
June 30
—. Billings_
Collections 1
Cs _ _ �)
to Billings
1991
$355,924
335,177
94.1
1992
557;574
552,249
99.0
1993
559,029
548,291
98.0
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
1,999
$790,532
770,164
97.4
(1) Includes Prepayments and Foreclosures
Source: Muni Financial Services
101
Source:
CITY OF LA QUINTA
Schedule of Direct and Overlapping Bonded Debt
June 30, 1999
Direct and Overlapping Bonded Debt
Riverside County General Find 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, 1999
A ]�
Bonded Debt
1.006
$5,637,306
1.006
181,755
3.859
67,648
8.991
2,383,149
8.991
6,722,971
6.308
926,645
69.080
8,130,716
1.832
152,606
43676.000
928,152
100.000
8,260,000 (1)
100.000
2.975.000
_26.365,948 (2)
Based on 1998-99 ratios.
Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded
capital lease obligations.
California Municipal Statistics, Inc.
102
Assessed Valuation
Debt Limit - 15 % of Assessed Valuation
Amount of Debt Applicable to Debt Limit
Legal Debt Margin
Notes:
Source:
CITY OF LA QUANTA
Computation of Legal Debt Margin
June 30, 1999
$2.693.644.173
404,046,626
.0-
S404,046,626
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 Quints
103
TABLE 8
CITY OF LA QUINTA
Revenue Bond Coverage
Local Agency Revenue Bonds (City Hall Project)
Last Eight Fiscal Years
TABLE 9
Fiscal Year
Debt Service Requirements
Ending
Revenue Available
June 30
for Debt Service
Principal
Interest
Total
Coverage
1992
$182,784
0
182,784
182,784
1.00
1993
548,352
0
548,352
548,352
1.00
1994
548,352
0
548,352
548,352
1.00
1995
699,477
155,000
544,477
699,477
1.00
1996
696,402
160,000
536,402
696,402
1.00
1997
607,950
170,000
437,950
607,950
1.00
1998
734,623
285,000
449,623
734,623
1.00
1999
684,573
245,000
439,573
684,573
1.00
Note:
Revenue available consists of lease payments made by the City of La Quinta to the La Quinta
Financing
Authority.
Source:
City of La Quinta
104
CITY OF LA QUINTA TABLE 10
Demographic Statistics
Last Ten Fiscal Years
Source: (1) City of La Quinta
(2) State of California Department of Finance
105
Total
City
Fiscal Ye
Population
Riverside
Population
Ending
Square
Percent
County
Percent
lune 30
Miles (1)
Population (21
Chante
Population(2)_Of
County
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%
1999
31.2
21,763
6.5%
1,473,307
2.2%
Source: (1) City of La Quinta
(2) State of California Department of Finance
105
CITY OF LA QUINTA TABLE 11
Property Value and Construction Activity
Last Nine Fiscal Years
Fiscal Year
Commercial
Residential
Ending
Property
Construction
Construction_
June 30
Value (1)
Units Value
Units
Value
1991
$1,278,307,230
3
7,299,000
304
38,320,527
1992
1,594,767,374
12
7,334,871
320
35,744,443
1993
1,773,323,102
7
2,441,392
324
39,145,539
1994
1,872,768,156
13
6,081,796
531
79,318,969
1995
1,927,834,908
4
1,100,119
238
29,163,494
1996
2,043,276,054
8
1,018,940
336
53,973,239
1997
2,164,204,951
11
1,876,747
322
36,971,047
1998
2,305,593,987
14
2,689,642
461
70,403,691
1999
$2,674,887,437
19
8,894,767
770
132,521,054
NOTE: Detail prior to _fiscal year 1991 not available
(1) From Schedule of Net Taxable Value
Source: City of La Quints
106
Source:
CITY OF LA QUTAITA
Principal Taxpayers
June 30, 1999
Taxpayer _ Type of Activari
KSL Desert Resorts Inc. Recreational, Residential Land
Michael T. and Lynn C. Goodlett Vacant Land
TD Desert Development Vacant Land, Residential
KSL Land Corporation Vacant Land, Residential
La Quinta Golf Properties Corporation Recreational, Commercial Land
Wal Mart Stores Inc. Commercial
KSL Hotel Land Vacant Miscellaneous
GMS Realty Commercial
Capital Pacific Holdings Vacant Residential
Eagle Hardware and Garden Inc. Retailer
HdL Coren & Cone, Riverside County Assessor 1998/99 Combined Tax Rolls
107
TABLE 12
Source:
CITY OF LA QUINTA
Major Employers
June 30, 1999
lv A9 er Employees
La Quinta Hotel and Golf Resort 1,500
Desert Sands Unified School District 525
TABLE 13
Activity
Hotel and Golf Resorts
School District
Wal-Mart
280
Retailer
Home Depot
185
Retailer
Rancho La Quinta
150
Golf and Tennis Resort
Stater Brothers
150
Groceries
Eagle Hardware
125
Retailer
Vons
75
Groceries
City of La Quints
72
Municipal Government
Ralphs
65
Groceries
City of La Quints
108
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 1999
TABLE 14
Company Name
Policy Number
Coverage
Limits
Term
Premium
_ _
Hartford
PEBA07068
Employee Dishonesty,
$1,000,000
12/03/98 - 99
$2,500
Forgery, Computer Fraud
Reliance Insurance
NZB1500917
All Risk Property Insurance
25,621,400
07/01/99-00
15,902
Company
Including Auto Physical Damage
(Excluding Quake & Flood)
Reliance Insurance
IMF 026349
Earthquake & Flood
5,000,000
02/07/99-00
20,200
Company
Real & Personal Property
Including Contigent Tax Interruption
California
Certificate #5
Comprehensive General
$0 Deductible Retention
12/03/98 - 99
60,300
Joint Powers
Liability
$50 Million
Insurace Authority
California
Certificate
Worker's Compensation
5,000,000
12/03/98 - 99
37,637
Joint Powers
•#5009-056
Insurance Authority
American National
UvIP9880468
Earthquake & Flood
2,500,000
02/07/99-00
5,000
Real & Personal Property
Including Contigent Tax Interruption
Chubbs Custom
Special Events
$1,000,000
N/A
Insurance
Source: City of La Quinta
109
CITY OF LA QUINTA
Miscellaneous Statistical Data
June 30, 1999
Date of Incorporation ..............1111... , .................
May 2, 1982
Type of City ............................... . 1111...
Charter City
Form of Government ....................................
Council / Manager
CityEmployees .......................................
72
CityLand Area (square miles) ....................................
31.2
Population .......................................
21,763
Number of Parks .......... .............................
5
Total Acreage ............ .........................
26
Miles of Streets ..................... ...............
170.0
Miles of Bike Paths .......................................
3.0
Number of Major Intersections ..................................
45
Number of Traffic Signals and Safety Lighting .......................
32
Number of Traffic Signs ... I ........... . .......................
2,605
Number of Street Lights .......................................
7
Public Schools .......111.11 ..........................
4
Private Schools .......................................
1
Churches.......................................
3
Banks/Savings and Loan .......................................
2
Number of Single Family Units - Detached ..........................
10,295
Number of Single Family Units - Attached ..........................
2,260
Number of Multiple Family Units ............. I ..................
697
Number of Mobile Homes .......................................
247
Source: City of La Quinta
110
TABLE 15