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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 (This page intentionally left blank) 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