Loading...
1999-2000 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 2000 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, 2000 TABLE OF CONTENTS INTRODUCTORY SECTION Pale Letter of Transmittal i List of Principal Officials xviii Organizational Chart xiv Certificate of Award for Outstanding Financial Reporting (CSMFO) xx Certificate of Achievement for Excellence in Financial Reporting (GFOA) xxi FINANCIAL SECTION Independent Auditors' Report I General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types 6 Statement of Revenues, Expenses and Changes in Retained Earnings - Internal Service Fund 8 Statement of Cash Flows - Internal Service Fund 9 Notes to the Financial Statements 10 Supplemental Data: General Fund: Statement of Expenditures - Budget and Actual 38 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF CONTENTS, (CONTINUED) Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal Assistance Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscape Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Law Enforcement Block Grant (SLEBG): Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Quimby Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 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 Page 40 42 44 45 46 47 48 49 50 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF CONTENTS, (CONTINUED) South Coast Air Quality Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Law Enforcement Block Grant (LLEBG): Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 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 Fuad Balances - Budget and Actual Low/Moderate Bond - Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Financing Authority Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Page 51 52 53 54 55 56 58 59 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF CONTENTS (CONTINUED) Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Infrastructure Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transportation Fund: Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Parks and Recreation Fund: Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Civic Center Fund: Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Page 61 62 64 68 70 71 72 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF CONTENTS, (CONTINUED Library Development: Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Community Center Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Street Facility: Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Park Facility: Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Assessment District 97-1 La Quinta Norte Construction Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Assessment District 2000-1 Phase VI Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Financing Authority Capital Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Page 73 74 75 76 77 78 79 80 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF CONTENTS, (CONTINUED) Page Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 81 Agency Funds: Combining Balance Sheet - All Agency Funds 84 Combiiirzg Statement of Changes in Assets and Liabilities - All Agency Funds 86 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source 90 Schedule of General Fixed Assets - By Function and Activity 91 Schedule of Changes in General Fixed Assets - by Function and Activity 92 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF CONTENTS, (CONTINUED} Table No. Page STATISTICAL SECTION General Fund Expenditures by Function 1 94 General Fund Revenue by Source 2 95 Property Tax Levies and Collections 3 96 Schedule of Net Taxable Value 4 97 Property Tax Rates - Direct and Overlapping Governments 5 98 Special Assessment Billings and Collections 6 99 Schedule of Direct and Overlapping Bonded Debt 7 100 Computation of Legal Debt Margin 8 101 Revenue Bond Coverage 9 102 Demographic Statistics 10 103 Property Value, Construction Activity, and Bank Deposits 11 104 Principal Taxpayers 12 105 Major Employers 13 106 Schedule of Insurance in Force 14 107 Miscellaneous Statistical Data 15 108 �tGt q;--/ 0"4j P.O. Box 1504 78-495 CALLS TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 November 21, 2000 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California FY 1999-00 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL We are pleased to present the 2000 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, 2000. Responsibility for both the accuracy of the data, its completeness and its fairness of presentation, including all disclosures rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City of La Quinta. All disclosures necessary to enable this reader to gain an understanding of the government's financial activities have been included. Document Structure The CAFR is presented in three sections: • Introductory; • Financial; and, • Statistical. E�� 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. B k r n 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 January 1, 2000 was 24,240, an increase of 136% from 1989. Retail Sales of $177 million, a 421% increase from 1989; • Taxable Sales of $233 million, a 267% increase from 1989; • Assessed Valuation of $2.684 billion, a 170% increase from 1989; and, Hotel Room sales over $33.9 million, a 92% increase from 1989. The City area includes the beautiful La Quinta Hotel, world class golf resorts, numerous single family and multi- dwelling units and light commercial industries. The City has a beautiful 10,000 sq ft Senior Center for City residents. The Desert Sands Unified School District provides educational opportunities for school-age children in La Quinta. The City has been experiencing rapid growth in population. During 1999, the population grew 10.8%, making it one of the fastest growing cities in California. With this growth comes a demand on local government to meet the needs of its citizens. The total number of full time authorized positions for 1999-2000 is 73.75. In addition to the 24,240 permanent residents, approximately 12,600 seasonal residents spend three to six months in the City. ii Honorable Mayor, City Council, and City Manager Services Provided by the City 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. Direct services provided by City staff in the following areas include: Qeneral Government Q,ity Clerk - Legislative - City Clerk - City Manager - Economic Development Community Services - Personnel - Administration Finance - Fiscal Services - Central Services Buil in n fet - 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 CommunityCommPnity Development - 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 Visitors Authority, City promotion through the La Quinta Chamber of Commerce, water service through the Coachella Valley Water District, electricity service through the Imperial Irrigation District, refuse collection through Waste Management Company, public transit through Sunline Transit Agency, and cable service through Time Warner. iii Honorable Mayor, City Council, and City Manager Significant- Events and Accom plisliments During 1999-00 the City experienced many significant events and accomplishments that may not be readily evident from a review of the financial statements. Some of the more important of these items are: Real Estate Single family construction accounted for $223 million in building permits while commercial construction accounted for $9 million in 1999. La Quinta issued $1.1 billion worth of building permits during the last ten years, averaging over $100 million per year. In 1999, construction increased 38% to over $251 million, a record for annual construction in the City. Three auto dealers have opened at the Centre in La Quinta and several new businesses have opened in the One Eleven La Quinta Center. Construction is nearly completed on an 8 -screen movie complex in this 60 -acre retail center. Several other large commercial projects are moving forward, including Jefferson Square, a 218,000 square foot retail center, Washington Square, a 775,000 square foot retail center, and the La Quinta Corporate Center, which includes a 160 -room hotel with restaurant. The development of quality residential communities, including PGA West, Rancho La Quinta and the Traditions has increased the assessed valuation of the City. Several other large projects have been approved and are moving forward. Since 1989, assessed valuations have almost tripled to $2.68 billion in 1999. In the last five years, assessed values have increased 38%, more than three times the growth rate of 12% for the local area. Housing 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 and available housing inventory. The U.S. Census has established the median home price at $130,000 which is lower than Riverside, San Diego, Los Angeles Counties and the State of California. There were 1,190 housing units built during 1999 which brings the number of total units within the City to 14,451. The 14,451 units consist of 11,197 detached single family residences, 2310 attached single family residences, 697 multi family residences, and 247 mobile homes. iv Honorable Mayor, City Council, and City Manager Tourism La Quinta is well-known for its many championship golf courses. The City is home to 15 championship courses, and many more are in the planning or development stages. In addition to quantity, La Quinta has some of the highest rated courses in the world of golf. Various golf tournaments, including the prestigious Bob Hope Chrysler Classic, are exposing La Quinta internationally as a quality destination and golf resort area. 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. Hotel room sales in La Quinta enjoyed dramatic growth to a record $34 million in 1999. The La Quinta Hotel, the second largest destination resort in the Coachella Valley, was the largest contributor to this increase. The City increased funding for the Palm Springs Desert Resort Convention Bureau for tourism promotion and provided funding for the Airline Services Council to bring a low cost carrier to the Coachella Valley. Capital I nprovements The City completed over $12,004,000 in capital improvements during 1999-00. Projects completed or nearing completion include the Washington Street bridge, the Mira Flores Housing project, completion of various road median projects, and additional covered parking at the Senior Center. In addition, the City assisted in the formation of Assessment District 2000-1 to improve the sewer, water, and street improvements at various City locations, and initiated the Jefferson Street widening project. Several significant projects are continuing, including the design of museum expansion, Phase I construction of the Community Park, and the design for a new library. The City is also nearing completion of the General Plan update. The City's Capital Improvement Program (CIP) continues to increase to meet the demands of growth, and totals $56.9 million for the 2000-2001 program. This major commitment in infrastructure will continue to provide for both the current and future growth that the City has experienced. Community Facilities The City completed additional covered parking at the Senior Center, and began the design phase of the museum expansion project. Phase I construction of the Community Park and design for a new library are also planned for the coming year, and continue to enhance community facilities available to La Quinta residents. v Honorable Mayor, City Council, and City Manager City Operations The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 1999- 2000: Implemented plans for purchase of land and development of La Quinta Museum; Received several grant awards for public safety, tire recycling and bicycle lanes; Conducted needs assessment and began implementation of Geographic Information System (GIS) data base; Received awards in excellence for financial and budget reports; Implemented upgrades in management information services, including additional servers, enhanced security, and establishment of City web server; Continued update of General Plan and Housing Element, and completed preparation of first draft of City's Design Standards for development and traffic. Future developments include: continued commercial development along the Highway 111 corridor, redevelopment financed property development on Avenue 48 and completion of residential projects in the northern part of the City. Financial Infoi-nuation Management of the City of La Quinta is responsible for establishing and maintaining a framework of internal controls designed to ensure that assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The framework of internal controls is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit - As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate framework of internal controls is in place to ensure compliance with applicable laws and regulations related to those programs. The framework of internal controls is subject to periodic evaluation by management. The City did not receive funds in the Fiscal Year Ended June 30, 2000 which would require a single audit report for that period. V1 Honorable Mayor, City Council, and City Manager Accounting Controls - The City of La Quinta's accounting system is designed upon the following principles: In the public sector, a city government maintains a variety of "funds" that provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with a complete set of self -balancing accounting records. Each fund has been established because of some restriction on the use of the resources received by that fund. In the private sector, a corporation may have many subsidiaries which make up the parent corporation. Likewise in the public sector, all of the funds make up the complete financial resources of the City of La Quinta. This report includes the transactions of all entities over which the City Council of the City of La Quinta has authority (as defined by the Governmental Accounting Standards Board). The City's accounting system operates on a modified accrual basis of accounting for all governmental and agency type funds. Governmental funds include the General, Special Revenue, Debt Service, and Capital Projects Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period. Expenditures, other than interest or long term debt, are recorded when liabilities are incurred. The City maintains one Internal Service Fund and no Enterprise Funds. These types of funds use the accrual basis of accounting. Revenues are recorded when earned and expenses when incurred. In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the cost/benefit of the controls imposed. The cost of a control should not be excessive to its derived benefit as viewed by City management. The internal controls in existence at the City of La Quinta are sufficient to ensure, in all material respects, both the safety of the City's assets and the accuracy of the financial record keeping system. BUdgetaiy 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. vii Honorable Mayor, City Council, and City Manager Gann Limit - Appropriations Subject to the Limit In 1979, Proposition 4, the "Gann" initiative, was passed by the voters of California. The purpose of this law was to limit government spending by putting a cap on the total proceeds of taxes that may be appropriated each year. This limit is increased each year through a formula that takes into consideration changes in the Consumer Price Index and state per -capita income. If a city reaches this limit, excess tax revenue must be returned to the State or citizens through a process of refunds, rebates, or other means that may be defined at that time. The Gann Limit for the City of La Quinta has increased steadily since 1979 and still provides the City with a comfortable operating margin. In 1991-92 state law allowed the recalculation of the City's limit with new inflation factors. Using population growth in the City and growth in State per capita income, the Gann spending limit was increased to $31.2 million for fiscal year 1999-00. Appropriations of "proceeds of taxes" was $9.1 million for a margin of $22.1 million. Revenue and Expenses from All Fund Tv��es The following schedules present a summary of the general fund, special revenue funds, debt service funds, capital project funds, Internal Service fund revenues and expenditures for 1999-00 and the amount and percentage of increases and decreases in relation to prior year revenues. Fund Type Revenue froin All Fund Types 1999-00 99-00 over % 1998-99 (under) 98-99 Change General Fund $17,667,475 $15,870,489 $1,796,986 11.32% Special Revenue Funds 7,459,225 7,279,078 180,177 2.48% Debt Service Funds $19,118,154 15,267,586 3,850,568 25.22% Capital Project Funds 8,568,707 7,498,334 1,070,373 14.27% Total $52.813.591 $45,915,487 $6,898,104 15.02% Ex enditures 1 Fund. Tykes 99-00 over % Fund Type 1999-00 1998-99 (under) 98-99 Change General Fund $11,029,888 $9,847,000 1,182,888 12.01% Special Revenue 3,956,554 3,874,525 82,030 2.12% Debt Service Funds 17,801,431 17,404,888 396,543 2.28% Capital Project Funds 13,640,087 8,125,252 13,640,087 67.87% Total $46,427,960 $39,251.665_, 176 295 18.28% Honorable Mayor, City Council, and City Manager For all fund types, the increased revenue is reflective of retail sales growth and increases in permit fees in the General Fund, increased Capital Project Fund activity, and increased tax increment revenue in the Debt Service Fund. Expenditures in all areas of the General Fund increased by a combined amount of 12%, with Capital Project fund expenditures increasing by the highest margin of 67.87%. Qeneral Fund The City's General Fund is used to record all revenue and expenditures not specifically restricted by law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy tax, licenses and permits, and interest. Categories of expenditures include police services, public works, planning, parks and recreation, and administrative functions. The following two tables summarize General Fund revenues and expenditures for 1998-99 and 1999- 2000: n r 1 F nd - Rev nue 99-00 over % Source 1999-00 1998-99 (under) 98-99 Change Taxes $8,888,825 $8,101,191 $787,634 9.72% Licenses and permits 2,493,360 1,951,981 541,379 27.73% Charges for services 1,922,097 1,965,219 (43,122) <2.19 %> Intergovernmental 2,388,749 1,466,788 921,961 62.86% Interest 1,868,073 1,569,796 298,277 19.0% Litigated Settlements 0 740,985 (740,985) n/a % Miscellaneous 106,371 74,529 31,842 42.72% Total $17,667,475 $15,870,489 $1,796,986 11.32 % ix Honorable Mayor, City Council, and City Manager The total 1999-00 General Fund revenue increase of 11.32% reflects a steady increase in tourism and population growth. The 27.73% increase in License an -d -Permit an--Permitrevenue was greater than anticipated for 1999-00. The City is experiencing a construction boom, with optimism among both builders and home buyers in La Quinta. The City expects an upward shift in equilibrium market prices for both new and resale residential units. 111ter�,overximental revenues generally showed a minimal increase, and the large percentage increase is caused by receipt of monies from Coachella Valley Association of Governments, reimbursing the City for improvements at Avenue 48 and Washington Street. Lnjereg revenues increased by 19% primarily due to earnings on loans to the La Quinta Redevelopment Agency, and to a lesser degree on increasing interest rates on investments. The increase of 42.72% in Miscellaneous revenue is primarily due to workers compensation dividends received from the City's proportionate share from the California Joint Powers Insurance Authority. Expenditure Type General Government Public Safety Community Services Planning & Development Public Works Total Q:neral Fund Expenditures 1999-00 1998-99 99-00 over % (under) 98-99_ qLange $2,814,604 $2,473,241 341,363 13.80% 4,992,811 4,468,294 524,517 11.74% 768,528 732,741 35,787 4.88% 748,949 626,074 122,875 19.63% 1,704,996 1,546,650 158,346 10.24% $11,029,888 $9,847,000 1,182,888 12.01% The 1999-00 General Fund net expenditure increase of 12.01% reflects the net changes in the five functional areas of the General Fund. Public Works expenditures increased 10.24%, with increases in spending for landscape lighting maintenance and contract service costs for inspections and street maintenance. The 19.63% increase in Planning and Development is attributable to an increase in contract services for professional services, as demand upon this department has increased. Community Services expenditures increased 4.88% from additional temporary employees and supplies, to continued expansion of programs. Public Safety expenditures increased by 11.74% largely as a result of increases in patrol hours of active patrol time for police officers. General Government's increased costs are spread throughout supplies, services, and capital expenditures for office improvements. x Honorable Mayor, City Council, and City Manager Special Rev&nue Funds The City's Special Revenue Funds, which account for the collection and use of special or restricted revenues, received $7.4 million in total revenue in 1999-00. This is an increase of 2.73%. The Special Revenue Fund expenditures were $3.87 million, a minimal increase over the prior year. The following two tables summarize Special Revenue Funds revenues and expenditures for 1998-99 and 1999-2000: ial Revenue Fun - Rev The decrease of 30.1% in Develo ep r Fees reflects reduced revenue in the Redevelopment Low -Moderate Income Housing Funds. The 45.1% decrease in In er t revenue reflects earnings on lower cash balances in Bond proceed accounts. Expenditure Type Planning & Development Public Works Total Spec :�l Revenue Funds - E - ditures 1999-00 1998-99 2,796,754 2,704,025 1,159,800 99-00 over % Source 1999-00 1998-99 (under) 98-99 Chan e Taxes $4,449,326 $3,592,472 $ 856,854 23.85% Developer fees 454,340 650,735 (196,395) 30.18% Intergovernmental 508,243 596,177 (87,934) 14.75% Interest 495,698 1,070,240 (574,542) <53.68%> Special assessments 785,794 759,273 26,521 3.49% Rental Income 404,752 414,236 9,484 <2.29%> Land Sale 361,102 195,945 165,157 84.29% Total $7,459,255 __ $7,2793078 180,177 2.48% The decrease of 30.1% in Develo ep r Fees reflects reduced revenue in the Redevelopment Low -Moderate Income Housing Funds. The 45.1% decrease in In er t revenue reflects earnings on lower cash balances in Bond proceed accounts. Expenditure Type Planning & Development Public Works Total Spec :�l Revenue Funds - E - ditures 1999-00 1998-99 2,796,754 2,704,025 1,159,800 1,170, 500 $3,956,554 $3,874,525 99-00 over % (under) 98-99 Change 92,729 3.43% <10,700> <91%> 82,029 2.12% Special Revenue Expenditures represent consistent use of gas tax, lighting and landscaping assessments, and redevelopment low/moderate income housing money to support ongoing projects, with little increase over the prior year. Xi Honorable Mayor, City Council, and City Manager Debt Service Funds The City's Debt Service Funds are used to record the payment of interest and principal on the current portion of outstanding debt. The following two tables summarize Debt Service Funds revenues and expenditures for 1999-00 and 1998-99: Source Debt Service Funds - Revenue 1999-00 1998-99 99-00 over % (under) 98-99 ChapSe Taxes $17,797,305 $14,369,887 $ 3,427,418 23.85% Interest 641,179 213,126 428,053 200.85% Rental Income 679,670 684,573 ($4,903) <.72%> Total $19,118,154 $15,267,586 $3,850,568 25.22% The Taxes revenues increase of 23.8% reflects increased building activities, lower than expected property value reassessment appeals and increased property values within the project areas. The Interest revenue's large increase of 200% is a result of higher cash balances invested in debt service funds and higher interest rates. The Financing Authority's debt service fund receives revenue from the General Fund in the form of rental income to pay for lease payments. The lease payments in 1999-00 decreased, resulting in a corresponding decrease in Rental In rule of .7%. Expenditure Type Planning & Development Debt Service Total D bt Sepice Fund5- Expenditure 1999-00 1998-99 $ 307,264 $270,566 17,494,167 17,134,322 $17,801,431 $1.7,404,888 99-00 over % (under) 98-99 Change 36,698 13.56% 359,845 2.10% $396,543 2.28% The increase of 13.56% in Planning & Develop is a result of higher contract administrative service fees in the Redevelopment Agency debt service fund. The Debt Service expenditure increase of 2.1% reflects higher scheduled tax increment pass through payments in the Redevelopment Agency. xii Honorable Mayor, City Council, and City Manager Capital Proiect Funds 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 1999-00 and 1998-99: Capital PE ' n - Rev n Source Developer fees Intergovernmental Interest Special assessments Litigated Settlements Total iooq-nn $3,860,989 3,728,384 633,497 345,837 n 1998-99 $4,663,006 1,133,477 841,769 38,493 821.589 $8,568,707 $7,498,334 99-00 over % (under 98-99 Change` ($802,017) 2,594907 (208,272) 307,344 (821,589) $1,070,373 <17.20%> 228.93% <24.74%> 798.44% n/a 14.27% Developer fess decreased because of the implementation of a new developer fee program which greatly reduced the amount of fees collected. Intergovernmental revenue's large increase of 228.9% is a result of state and local partnership grants for transportation -related capital improvements. No Litig, ited Setl m nt revenue was received in 1999-00 in the Capital Projects funds. Expenditure Type Planning & Development Capital Outlay Total Capital Prink Fund$ - Expenditures 1999-00 1998-99 $ 1,309,776 $1,147,357 12,330,311 6,977,895 $13,640,087 $8,125,252 99-00 over % (under) 98-99 Change 162,419 14.16% 5,352,416 76.71% $5,514,835 67.87% The 14% increase in Planning & Devi men expenditures reflects an increase in contract consultant fees in the Redevelopment Agency - Capital Improvement Funds. The Capilal OutlaX increase of 76.7% is a result of increased scheduled Capital Improvement Projects in 1999-00. Honorable Mayor, City Council, and City Manager Internal Service Fund The City's Internal Service Fund (Equipment Replacement Fund) is used to report the operational cost of maintaining and replacing City vehicles and equipment. Cost allocation charges are recorded as expenditures in General Fund departmental budgets accounts and as revenues in the Equipment Replacement Fund. Charges are based on a schedule that recovers maintenance and depreciation costs. New vehicles and equipment are purchased in the respective General Fund department and then transferred out as contributed capital to the Equipment Replacement Fund at the end of the year. Source Operating Revenue Charges for Services Operating Expense: Cost of Services Depreciation Other Operating Expenses 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 ReReplacement Fund ... .T.I 1998-99 99-00 over % (under) 98-99 Chan e $510,673 $338,665 $ 172,008 50.79% _ $ 74,062 $ 72,969 $1,093 1.50% 124,836 88,358 36,478 41.28% 6,581 4,010 2,571 64.11% $205,479 $165,337 $ 40,142 24.28% $305,194 $ 173,328 $131,866 76.08% $ 88,869 $ 52,560 $36,309 $ 88,869 $ 52,560 _ $ 36,309 $ 394,063 $ 225,888 $ 168,175 $ 471,000 $ 471,000 $ 865,174 $799,789 0 0 $225,888 $573,901 $471,000 $471,000 $639,286 $ 225,888 69.08% 69.08% 74.45% n/a n/a 282.96% 2n '2K0% $1,664.963 $799789 $ 865,174 108.16% xiv Honorable Mayor, City Council, and City Manager Risk MatSageziient The California Joint Powers Insurance Authority (CJPIA) was formed in 1997 under a joint exercise of powers agreement between local governments for the purpose of jointly funding programs of insurance under Section 990 of the California Government Code. The Authority is governed by a Board of Directors, which is composed of one director from each member organization which maintains membership in the Liability program. The City of La Quinta joined the CJPIA in order to achieve long-term premium stability. Each member city must remain in the pool for three years. Each year, the self-insured pool undergoes a retrospective deposit computation based on current incurred loss valuations. Appropriate adjustments are then made over a three-year period. The likelihood of the need for excess premiums is remote given the claims history of the cities involved and the length of time necessary to settle large claims. Generally, individual claims in excess of the self-insured amount for worker's compensation and general liability fall under the insurance policies purchased by the City. The CJPIA provides for liability insurance coverage with a maximum of $50;000,000 per claim. All reserves are invested and earnings are credited to members in proportion to their equity. At present, the CJPIA has invested reserves in excess of $100,000,000. Based on historical experience, as of June 30, 2000, 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. Cityyetiretnent Costs Note 19 in the Notes to the Financial Statements explains in detail the financing of the City's retirement program. Significant financial information has been disclosed in the notes in order to comply with GASB Statement Number 5. Based upon the latest information, the total over funded benefit obligation applicable to the employees of the City at June 30, 1998 was $1,568,198, up $755,046 from an over funded pension benefit obligation of $813,153 as of June 30, 1997. Employer contribution rates are reviewed and adjusted annually to achieve full funding for retirement benefits by the year 2011. Cash Maaagerztent 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 1999-00 fiscal year, idle funds were deposited in accordance with this policy in demand deposits, medium-term notes, treasury and agency notes, treasury money market funds, and a pooled investment administered by the State of California. At all times there was compliance with the City's investment policy, and safety and liquidity objectives were placed above rates of return considerations in making deposits and investments. All deposits during the year were insured by the Federal Deposit Insurance Corporation or were collateralized. xv 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 about $2.5 million in interest on investments in all fund types with annualized earnings on pooled cash investments of 6.34% , compared to earnings of $3.7 million during 1998-99. Funds are invested in various types of instruments as shown below. At June 30, 2000, the City had 100% of all available funds invested. The City's total portfolio at year end was $ 67,395,952. Below is a summary of cash and investments outstanding as of June 30, 2000: Form of ash and Investment Jure 30, 2000 Demand Deposits $ 1,355,385 U.S. Treasury Bills/Notes 31,424,504 U.S. Government Agency Securities 19,110,772 Mutual Funds -First American Treasury 4,032,331 Local Agency Investment Fund 11 472.960 $67.395.952 Total As required by State law, the City Council has adopted a comprehensive investment policy specifying the type and term of City investments. The policy allows the City Treasurer flexibility without endangering the safety, liquidity or yield of the total portfolio. Certificate of Award for Outstanding Financial Reporting The California Society of Municipal Finance Officers (CSMFO) 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. xvi Honorable Mayor, City Council, and City Manager Acknowleft ents, This report could not have been accomplished without the dedicated services of the Finance Department staff. Recognition is given to Amy Swan -Draper, Accounting Manager for her efforts in preparing the introductory and financial sections, Debbie De Renard, Secretary for her report preparation skills and Sharon Christensen, Misaela Mendoza, Geniene Croft 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. Res e tfully submitted, John M. Falconer Finance Director and Treasurer avii City of La Quinta Directory of Officials June 30, 2000 CITY COUNCIL John Pena, Mayor Stanley Sniff, Mayor Pro Tem Terry Henderson, 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 Kathy Jenson, City Attorney Dodie Horvitz, Community Services Director June Greek, City Clerk Chris Vogt, Public Works Director/City Engineer i Police J County Contract Assistant City Manager Management Analyst - 2 positions Secretary -1 1/2 positions Manager I Commun Lity Services Public Works Administration Director Recreation Supervisor Secretary Senior Center Supervisor Activities Coordinator Assistant - 3/4 Time Adminlstration Director Senior Secretary Devetopmertt t3 Trat1lc Senior Engineer Associate Engineer Assistant Engineer II - 2 Positions Assistant Engineer I Counter Technician Ca kcal Projects Senior Engineer Assistant Engineer I Maintenance 8 Operations Maintenance Manager Maintenance Foreman - 3 Positions Maintenance Worker 11 - 3 Positions Maintenance Worker I - 4 Positions City of La Quinta, California Organizational Chart Fiscal Year 1999/00 Mayor and City Council Redevelopment Agency Board Accounting Manager Financial Services Assistant Account Technician - 2 Positions Secretary Account Clerk City Clerk - 2 P Office Assistant E Buildin & Safe! Administration Director Senior Secretary Code Com Bance Community Safely Manager Code Compliance Officer II Code Compliance Officer I - 2 Positions Counter Technician Office Assistant - 1/2 position Animal Control Animal Control Officer II Animal Control/Code Compliance Officer 2 positions Building Building & Safety Manager Senior Building Inspector Building Inspector II Building Inspector I Counter Technician Once Assistant -1/2 position Civic Center Bulldin O rations Facilities Maintenance Technician Gommunit Development Administration Director Planning Manager Associate Planner Executive Secretary Secretary Planning Principal Planner - 2 positions Associate Planner - 3 Positions California Society Of c7lunicipal 3'inance Officers Certificate of Award Outstanding Financial Reporting 1998-99 Presented to the City ofLa Quinta its certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared. February 28, 2000 *i"Pr0f"i,.aT al echinical 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, 1999 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. FT Wit STAAM „ UWA WOUM" President 9� SrAL �NICA60 Executive Director xxi CONRADAND ASSOCIATES, L.L.P. The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report CERTIFIED PUBLIC ACCOUNTANTS 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92614 (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, 2000, 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, 2000, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual 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 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 9, 2000 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. /vreaai*»ol,4snu.*J, L. L, August 9, 2000 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CITY OF LA QUINTA Combined Balance Sheet - All Fund Types and Account Groups June 30, 2000 Governmental Fund Types Special Debt - Capital Assets and Other Debits General Revenue Service Projects Assets: Cash and investments (note 2) Cash with fiscal agent (note 2) Accounts receivable Prepaid items Interest receivable Notes receivable (note 24) Due from other funds (note 23) Due from other governments Advances to other funds (note 13) Deposits 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 Liabilities, Equity and Other Credits Liabilities: Accounts payable Accrued payroll Compensated absences payable (note 5) Deferred revenue Deposits payable Retainage payable Due to other funds (note 23) Due to other governments Due to bondholders Advances from other funds (notes 13) Long-term debt (note 5 through 14) Total liabilities Equity and other credits: Investment in general fixed assets Contributed capital (note 18) Retained earnings (note 17): Unreserved Fund balances (note 16): $ 19,916,410 8,121,407 5,718,057 16,321,886 - 4,703,043 255,365 8,020,529 337,045 59,451 - 64,350 65,323 - 332,088 - 456,767 833 - 115,867 - 2,678,632 - 796,464 - - 602,021 323,942 18,965 - 601,430 10,460,178 551,038 - - 40,062 - - - $ 32,396,191 16,133,369 6,305,510 25,726,083 $ 2,367,220 101,917 4,503 691,578 356,163 - - - 8,271 - - 479,150 987,139 14,806 - - - 786,205 10,707 601,573 - - 589,835 - - - 551,038 111,508 3,718,793 902,928 1,156,083 1,883,809 Reserved 10,565,563 7,932,713 Unreserved 18,111,835 7,297,728 Total equity and other credits 28,677,398 15,230,441 Total liabilities, equity and other credits $ 32,396,191 16,133,369 See accompanying notes to financial statements. `A 5,159,514 10,08 5,149,427 6,305,510 10,433,629 13,408,645 23,842,274 25,726,083 Proprietary Fiduciary Fund Type Fund Type Account Groups Totals Internal General General (Memorandum Only) Service Agency Fixed Assets Long -Term Debt 2000 1999 1,855,449 2,483,806 - - 54,417,015 42,752,207 - - - - 12,978,937 14,798,307 - - - - 460,846 412,768 - - - - 397,411 60,300 - - - - 573,467 573,494 - - 2,678,632 2,668,851 - - - - 1,398,485 877,327 - - - - 944,337 422,621 - - - - 11,011,216 9,330,484 - - - - 40,062 39,812 709,254 - 25,578,978 - 26,288,232 26,084,362 - - - 4,827,426 4,827,426 3,306,726 - - - 102,754,217 102,754,217 104,523,619 2,564,703 2,483,806 `25,578,978 107,581,643 218,770,283 205,850,878 3,944 694 - - 3,169,856 1,474,931 - - - - 356,163 389,972 - - - 321,992 321,992 337,881 - - - - 487,421 8,271 - 669,465 - - 1,671,410 2,517,877 - - - - - 163,467 - - - - 1,398,485 877,327 - - - - 589,835 - - 1,813,647 - - 11,813,647 1,571,781 - - - 10,348,670 11,011,216 9,330,484 - - - 96,910,981 96,910,981 99,548,987 3,944 2,483,806 - 107,581,643 117,731,006 116,220,978 - - 25,578,978 - 25,578,978 25,380,028 895,796 - - - 895,796 857,519 1,664,963 - - - 1,664,963 799,789 - - - - 34,091,419 30,201,299 - - - - 38,808,121 32,391,265 2,560,759 - 25,578,978 - 101,039,277 89,629,900 2,564,703 2,483,806 25,578,978 107,581,643 218,770,283 205,850,878 3 (This page intentionally left blank) CITY OF LA QUTNTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended June 30, 2000 See accompanying notes to financial statements 5 Totals Special Debt Capital _(Memorandum Only) General Revenue Service Projects 2000 1999 Revenues: Taxes $ 8,888,825 4,449,326 17,797,305 - 31,135,456 26,063,550 Licenses and permits 2,493,360 - - - 2,493,360 1,951,981 Charges for services 1,922,097 - - 1,922,097 1,965,219 Developer fees - 454,340 - 3,860,989 4,315,329 5,313,741 Intergovernmental 2,388,749 508,243 - 3,728,384 6,625,376 3,196,442 Investment income 1,868,073 495,698 641,179 633,497 3,638,447 3,694,931 Special assessments - 785,794 - 345,837 1,131,631 797,766 Rental income - 404,752 679,670 - 1,084,422 1,098,809 Gain (loss) on sale of land - 361,102 - 361,102 195,945 Litigation settlement proceeds - - - - - 1,562,574 Proceeds of debt without government commitment - - - 2,240,013 2,240,013 705,262 Miscellaneous 106,371 - - - 106,371 74,529 Total revenues 17,667,475 7,459,255 19,118,154 10,808,720 55,053,604 46,620,749 Expenditures: Current: General government 2,814,604 - - - 2,814,604 2,473,241 Public safety 4,992,811 - - - 4,992,811 4,468,294 Community services 768,528 - - - 768,528 732,741 Planning and development 748,949 2,796,754 307,264 1,309,776 5,162,743 4,748,022 Public works 1,704,996 1,159,800 - - 2,864,796 2,717,150 Capital projects - - - 12,330,311 12,330,311 6,977,895 Debt service: Principal - 1,755,000 _ 1,755,000 3,405,000 Interest - - 5,179,880 5,179,880 5,001,240 Payments under pass-through obligations - 10,559,287 - 10,559,287 8,728,082 Total expenditures 11,029,888 3,956,554 17,801,431 13,640,087 46,427,960 39,251,665 Excess (deficiency) of revenues over (under) expenditures 6,637,587 3,502,701 1,316,723 2,831,367) 8,625,644 7,369,084 Other financing sources (uses): Operating transfers in 79,510 375,267 2,086,472 10,014,827 12,556,076 8,617,313 Operating transfers out (1,359,255) (3,743,259) (2,349,638) (5,575,035) (13,027,187) (8,617,313) Proceeds of advances 797,916 1,607,273 2,405,189 833,402 Total other financing sources (uses) (1,279,745) (3,367,992) 534,750 6,047,065 1,934,078 833,402 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 5,357,842 134,709 1,851,473 3,215,698 10,559,722 8,202,486 Fund balances at beginning of year 23,319,556 15,095,732 3,297,954 20,879,322 62,592,564 54,488,841 Residual equity transfer - - - (252,746) (252,746) (98,763) Fund balances at end of year $ 28,677.398 15,230,441 5,149,427 23,812.274 72,899,540 62,592,564 See accompanying notes to financial statements 5 CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types Year ended June 30, 2000 Revenues: Taxes Licenses and permits Charges for services Developer fees Intergovernmental Investment income Special assessments Rental income Gain (loss) on sale of land Proceeds of debt without government commitment 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 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 transfer Fund balances at end of year General Fund Variance Favorable/ Budget Actual (Unfavorable) $ 6,895,700 8,888,825 1,993,125 766,100 2,493,360 1,727,260 802,610 1,922,097 1,119,487 1,893,861 2,388,749 494,888 1,464,000 1,868,073 404,073 55,600 106,371 50,771 11,877,871 17,667,475 5,789,604 3,061,630 2,814,604 247,026 5,108,465 4,992,811 115,654 857,334 768,528 88,806 1,332,438 748,949 583,489 1,578,060 1,704,996 (126,936) 11,937,927 11,029,888 908,039 (60,056) 6,637,587 6,697,643 40,000 79,510 39,510 (1,682,416) (1,359,255) 323,161 (1,642,416) (1,279,745} 362,671 (1,702,472) 5,357,842 7,060,314 23,319,556 23,319,556 - 21,617,084 28,677,398 7,060,314 See accompanying notes to financial statements. 6 Special Revenue Funds Debt Service Funds Capital Projects Funds Variance Variance _ Variance Favorable/ Favorable/ Favorable/ Budget Actual (Unfavoruble) Budget Actual ((Knfayorablel Budget Actual (Unfavorable) 4,000,100 4,449,326 449,226 16,000,397 17,797,305 1,796,908 20,000 454,340 434,340 - - - 2,092,153 3,860,989 1,768,836 688,752 508,243 (180,509) - - - 15,849,898 3,728,384 (12,121,514) 244,300 495,698 251,398 18,000 641,179 623,179 576,000 633,497 57,497 764,200 785,794 21,594 - - - - 345,837 345,837 341,000 404,752 63,752 679,670 679,670 - - - 150,000 361,102 211,102 - - _ - - - - - - 2,806,700 2,240,013 (566,687) 6,208,352 7,459,255 1,250,903 16,698,057 19;]18,154 2,420,087 21,324,751 10,8081720 (10,516,031) 3,852,451 2,796,754 1,055,697 304,370 307,264 (2,894) 1,372,011 1,309,776 62,235 1,159,800 1,159,800 - - - - - _ - - - - - - - 44,245,320 12,330,311 31,915,009 - - - 1,755,000 1,755,000 - - _ _ - - - 5,280,477 5,179,880 100,597 - - - - - - 10,196,102 10,559,287 (363,185) - - - 5,012,251 3,956,554 1,055,697 17,535,949 17,801,431 (265,482) 45,617,331 13,640,087 31,977,244 1,196,101 3,502,701 2,306,600 (837,882) 1,316,723 2,154,605 (24,292,580} 2,83] 367 21,461,213 2,000 375,267 (8,710,465) (3,743,259) 373,267 2,078,139 2,086,472 8,333 30,790,997 10,014,827 (20,776,170) 4,967,206 (2,349,838) (2,349,638) 200 (19,110,290) (5,575,035) 13,535,255 - 794,347 797,916 3,569 115,000 1,607,273 1,492,273 (8,708,465 (3,367,992 5,340,473 522,648 534,750 12,102 11,795,707 6,047,065 (5,748,642) (7,512,364) 134,709 7,647,073 (315,234) 1,851,473 2,166,707 (12,496,873) 3,215,698 15,712,571 15,095,732 15,095,732 - 3,297,954 3,297,954 - 20,879,322 20,879,322 - - - - - - - - (252,746} (252,746) 7,583,368 15,230,441 7,6147,073 2,982,720 5,149,427 2,166,707 8,382,449 23;842,274 15,459,825 7 CITY OF LA QUINTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Internal Service Fund Year ended June 30, 2000 See accompanying notes to financial statements. 8 2000 1999 Operating revenues: Charges for services $ 510,673 338,665 Operating expenses: Fuel and oil 29,878 26,924 Maintenance and parts 44,184 46,045 Depreciation 124,836 88,358 Other operating expenses 6,581 4,010 Total operating expenses 205,479 165,337 Operating income (loss) 305,194 173,328 Non-operating revenues (expenses): Investment income 88,869 52,560 Total non-operating revenues 88,869 52,560 Income (loss) before operating transfers 394,063 225,888 Operating transfers in 471,111 - Net income (loss) 865,174 225,888 Retained earnings at beginning of year 799,789 573,901 Retained earnings at end of year $ 1,664,963 799,789 See accompanying notes to financial statements. 8 CITY OF LA QUINTA Combined Statement of Cash Flows - Internal Service Fund Year ended June 30, 2000 See accompanying notes to financial statements. 9 2000 1999 Cash flows from operating activities: Cash received from other customers $ 510,673 338,665 Cash payments to suppliers for goods and services (84,463) (78,319) Net cash provided by (used for) operating activities 426,210 260,346 Cash flows from noncapital financing activities: Cash transferred from other funds 471,111 - Net cash provided by (used for) noncapital financing activities 471,111 - Cash flows from capital and related activities: Purchase of fixed assets (88,340) (64,602) Net cash provided by (used for) capital and related activities (88,340) (64,602) Cash flows from investing activities: Interest received on uivestments 99.004 42,425 Net cash provided by (used for) investing activities 99,004 42,425 Net increase (decrease) in cash and cash equivalents 907,985 238,169 Cash and cash equivalents at beginning of year 947,464 709,295 Cash and cash equivalents at end of year $ 1,855,449 947,464 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ 305,194 173,328 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 124,836 - Adjustments: Increase (decrease) in other assets (3,139) w Decrease (increase) in accounts payable (681) (1,340) Net cash provided by (used for) operating activities $ 426,210 171,988 Noncash capital, financing and investing activities: Fixed assets contributed by other funds $ 38,277 156,493 See accompanying notes to financial statements. 9 CITY OF LA QUINTA Notes to the Financial Statements Year ended June 30, 2000 1) Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta ("the City") was incorporated May 1, 1982 under the general laws of the State of California. 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. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, which are entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the govennment's operations and so data from these units are reported with the interfund data of the primary government. 10 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Sjgnificant Accounting Policies, (Continued) The following organizations are considered to be component units of the City: La Quinta Redevelopment Agent The La Quinta Redevelopment Agency (Agency) has established two redevelopment prc�lect 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 of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991 between the City of La Quinta and the La Quinta Redevelopment. Agency. The purpose of the Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although 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. 11 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 Oreneral 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. 12 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary 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 govermnental funds and capitalized at cost in the general fixed assets account group. Fixed asset records include estimates of original historical cost as determined by knowledgeable individuals in the City. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided on general fixed assets. General Long -Term Debt Account Group The General Long -Term Debt Account Group is used to account for all long-term debt of the City. (c) Measurement Focus and Basis of Accounting Governmental (general, special revenue, debt service and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fiend types report increases (revenues) and decreases (expenditures) in available spendable resources. 13 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. 14 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 $10,011,868 were made during the year. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. (e) Interfund Transfers Nonrecurring transfers of equity between funds are reported as an adjustment to beginning fund balance. Operating transfers are reported as other sources and uses of funds in the statement of revenues, expenditures, and changes in fund balances. (f) Advances to Other Funds Long-term interfund advances between the City and the Agency are recorded as a receivable and in the long-term debt account group. (g) Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair market value and the carrying amount is material. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance. 15 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (h) Cash Equivalents (i) 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. 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, 2000. 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. 16 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of 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 currentbase 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) vitalization of Leases Capitalized leases have been treated in accordance with Financing Accounting Standards Board Statement No. 13 (Accounting for Leases). (m) Postemployment 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. 17 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 1 Summary of Significant Accounting Policies Continued (o) 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. (p) Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. (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 $54,417,015 12,978,937 $67,395 952 Cash and investments held by the City at June 30, 2000 consisted of the following: Demand deposits Investments Total 18 $ 1,355,385 6666 0,567 67,395,952 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Cantinj! d The City and its component units are authorized by its investment policy to invest in the following types of investments: Investment Type Maximum % 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. Category Bank Book Form of Deposit 1 2 3 Balance Balance Deposits held by the City: Demand deposits '100,000 567,963 1,968.272 2,636,235 1,355,385 19 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. Investments held by the City: U.S. Treasury Notes Federal Home Loan Bank FNMA Investments held by fiscal agent: U.S. Treasury Notes U.S. Treasury Bills Federal Farm Credit Bank Category i 2 3 Carrying Value $23,955,628 - - 23,955,628 2,975,076 - - 2,975,076 14,657,968 - - 14,657,968 6,960, 864 508,012 1,477,728 $41,588.672 &21k&L4 Investments held by the City not subject to categorization: Investment in State of California Local Agency Investment Fund Investments held by fiscal agent not subject to categorization: Investment in mutual funds: First American Treasury Obligation Fund 20 6,960,864 508,012 1.477.728 11,472,960 4,032,331 $0,5G7 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) Investments are adjusted at year end to fair value, except when the difference between fair value and book value is immaterial. The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Goverrunent 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. 3 PropertyPropeLty 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. 21 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, 2000 are as follows: The following is a summary of proprietary fund type fixed assets for the City at June 30, 2000: Internal Service Fund Building improvements $613,890 Equipment 106,488 Vehicles 665,954 Less accumulated depreciation67[ 7,078) Total 709 254 22 Transfers Balance at to Proprietary Balance at June 30, 1999 Additions Retirements Funds June 30, 2000 Land $12,075,671 106,773 (352,000) - 11,830,444 Equipment and furniture 1,116,160 352,015 - 1,468,175 Vehicles 161,052 38,277 - (38,277) 161,052 Leasehold improvements 201,070 - - 201,070 Buildings 11,826,075 92,162 _ - 11,918,237 Total $ 238,i28 589.227 (3.52,044) 8,277 25,5789L _ The following is a summary of proprietary fund type fixed assets for the City at June 30, 2000: Internal Service Fund Building improvements $613,890 Equipment 106,488 Vehicles 665,954 Less accumulated depreciation67[ 7,078) Total 709 254 22 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, 2000 were as follows: Balance at Balance at July 1, 1999 Additions Deletions June 30,2000 City: Compensated absences payable $ 337,881 - (15,889) 321,992 Capital leases payable 11,999 - (11,999) - Due to the Coachella Valley Association 2,350,000 - - 2,350,000 of Governments 678,311 - (50,000) 628,311 Developer Agreements Payable 649,291 100,214 (54,160) 695,345 RDA Project Area No. 1: 8,260,000 -2_ (50,000) 8,010,000 Tax allocation bonds 38,850,000 - (1,085,000) 37,765,000 Housing tax allocation bonds 17,172,278 - (267,660) 16,904,618 Pass-through agreements payable: Due to County of Riverside 10,116,237 - (217,135) 9,899,102 Coachella Valley Unified School District 10,068,149 - (649,927) 9,418,222 Advances from other funds* 3,586,358 469,481 4,055,839 RDA Project Area No. 2: Tax allocation bonds 6,750,000 - (80,000) 6,670,000 Housing tax allocation bonds 4,642,722 - (72,340) 4,570,382 Due to County of Riverside 2,350,000 - - 2,350,000 Advances from other funds* 4,357,119 1,935,712 - 6,292,831 Financing Authority: Revenue bonds 8,260,000 -2_ (50,000) 8,010,000 Total $]07,U_0,3 45. 2,5(15 407 (2 754,110) 1{]7,, $111y42, * 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. Due to the Coachella Vallev 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, 2000, the balance was $628,311. 23 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (7) 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 Horne 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 clue 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, 2000 was $695,345. ( 8) Tax Allocation Bonds As of June 30, 2000, 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. 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, 2000 is $22,005,000. 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, 2000, $14,585,000 of the 1990 defeased bonds are outstanding. 24 CITY OF LA QUINTA Notes to the Financial Statements (Continued) Tax Allocation Bonds, (Continued) 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. The unexpended balance of proceeds at June 30, 2000 is $6,800,003. Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on March I 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. 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, 2000 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 bands 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, 2000, $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 AIIocation Bonds, Series 1992. The remaining proceeds were used to finance certain capital improvements within the La Quinta Redevelopment Project Area No. 2. The unexpended balance of proceeds at June 30, 2000 is $632,837. 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. 25 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (8) Tax Allocation Bonds, (Continued) 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. 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, 2000 is $6,670,000. (9) 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. The interest and principal of the bonds are payable from pledged tax increment revenues of both project areas. 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. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The principal balance of outstanding bonds at June 30, 2000 is $21,475,000. (10) 1996 Lease Revenue Refunding Bonds On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for construction of remaining improvements to the La Quinta Civic Center site. The unexpended balance of proceeds at June 30, 2000 is $587,689. 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. CITY OF LA QUINTA Notes to the Financial Statements (Continued) (10) 1996 Lease Revenue Refunding Bonds, (Continued) A surety agreement has been purchased to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The amount of principal outstanding on the 1996 Lease Revenue Refunding Bonds at June 30, 2000 is $8,010,000. (11) Due to County of Riverside Proiect 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, 2000 is $9,899,102. 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, 2000 is $2,350,000. 12) 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 $474,51.7 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 2000 totaled $9,418,222. 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. 27 CITY OF LA QUINTA Notes to the Financial Statements (Continued) Advances To and From Other Funds The following represents a summary of the various transactions between the City of La Quinta and the La Quinta Redevelopment Agency, which are accounted for as advances from the City: Agency expenditures incurred by the City: Project Area No. 1 Project Area No. 2 Total Balances at July 1, 1999 Proceeds $3,586,358 469,481 4,3572119 1,935,712 $7.,943,477 2,405.193 Balances at Repayments June 30, 2000 4,055,839 6,292,831 10,348.b70 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. Interest does not accrue on this obligation. The balance at June 30, 2000 is $111,508. (14) Debt Service Requirements to Maturity The minimum annual requirements (including sinking fund requirements) to amortize the long-term debt of the City as of June 30, 2000 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): 28 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (14) Debt Service Requirements to Maturity, (Continued) 29 1996 Pass-through Areements Lease 1995 1998 1998 Revenue Coachella County Ending Housing 1994 TABS TABS Refunding Valley of June 30 CVAG TABS TABS P.A. No. 1 P.A. No. 2 Bonds USD Riverside Total 2000-01 $50,000 1,592,187 2,624,885 819,520 417,467 678,955 670,817 1,803,705 8,657,536 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 - 31482,618 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 628,311 42,180,042 33,723,489 33,841,440 14,151,241 12,833,937 9,418,222 14,332,534 161,109,216 Less: Interest -20,705 042) 11 718 459 (18.081,440) 7,481,241). (4,823,937)- 2 f?{ 83,432) (64,893,581) Total principal $628,3.1.1_ 21 47 OU 22 -ft 0J.M,222 1 49 1 29 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 15 Debt Without Governmental Commitment The City of La Quinta sold Improvement Bands issued pursuant to the California State Improvement Act of 1915. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benefited by the projects. The Bonds are neither general obligations of the City nor any other political subdivision and the full faith and credit of the City is not pledged for repayment thereof. The City is not liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments and forwarding the collections to bondholders. The Bonds do not constitute an obligation of the City; therefore, they are not included in the general long-term debt account group in the accompanying financial statements. The following is a summary of Improvement Bonds outstanding at June 30, 2000: Amount Outstanding Proceeds Maturity Date Interest Rate at June 30, 2000 Assessment District No. 88-1 $ 855,984 9/2/04 5.50%-7.25% $ 225,000 Assessment District No. 89-2 1,153,974 9/2/04 6.65%-6.75% 400,000 Assessment District No. 90-1 1,227,155 9/2/05 6.50%-7.00% 485,000 Assessment District No. 91-1 2,240,866 9/2/06 6.70%-6.80% 1,065,000 Assessment District No. 92-1 1,880,891 9/2/08 5.00%-5.40% 1,195,000 Assessment District No. 97-1 705,262 9/2/18 4.10%-5.20% 745,000 Assessment District No. 2000-1 2,285,000 9/2/15 5.00%-6.60% 2,285,000 (16) 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, 2000 consisted of the following reserves and designations: 30 Totals General Special Debt Capital (Memorandum Fund Revenue Service Protects Only) Reserved for: Debt service $ - - 4,827,426 - 4,827,426 Bond projects - 4,703,043 - 10,433,629 15,136,672 Advances to other funds 10,460,178 551,038 - - 11,011,216 Prepaid items 65,323 - 332,088 - 397,411 Deposits 40,062 - - - 40,062 Notes receivable - _ 2,678,632 - - 2,678,632 Subtotal 10.565,563 7,932,713 5,159,514 10,433,629 34,091,419 30 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 1�) Reserves and Designations of Fund Balances_ (Continued) 17) Retained Earnhies As of June 30, 2000, 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 patties external to the governmental unit. (18) Contributed Capital A summary of changes in contributed capital for the year ended June 30, 2000 are as follows: Balance at June 30, 1999 $857,519 Fixed Assets contributed by other funds 38,277 Balance at June 30, 2000 $895,396 31 Totals General Special Debt Capital (Memorandum Fund Revenue Service projects Only) Unreserved: Designated for: Emergency reserve 8,696,940 - - 8,696,940 Cash flows 1,800,000 - - - 1,800,000 Operations/projects/transfers 7,614,895 7,942,647 - 13,408,645 28,966,187 Undesignated -(044,919) (10,087 - 655,006) Subtotal 18,111,835 7,297,7281( 0,087) 13408645 38808,121 Total fund balances $8,6 12_3�� S. 1� 2,842,274 72,$9 544 17) Retained Earnhies As of June 30, 2000, 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 patties external to the governmental unit. (18) Contributed Capital A summary of changes in contributed capital for the year ended June 30, 2000 are as follows: Balance at June 30, 1999 $857,519 Fixed Assets contributed by other funds 38,277 Balance at June 30, 2000 $895,396 31 CITY OF LA QUINTA Notes to the Financial Statements (Continued) Defined Benefit Pension Plan Plan Description The City of La Quinta contributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, California 95814. Funding Policy Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate. For the year ended June 30, 2000, the rate was 4.116% 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 2000, the City's annual pension cost (employer contribution) in the amount of $128,123 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1997, 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-tenn volatility in the market value of investments over a four-year period (smoothed market value). Any unfunded actuarial accrued liability is amortized as a level percentage of projected payroll on a closed basis. PERS combines the prior service unfunded liability and the current service unfunded liability into a single initial unfunded liability. The single funding horizon for the unfunded liability is June 30, 2011. 32 CITY OF LA QUINTA Notes to the Financial Statements (Continued) 19) Defined Benefit Pension Plan, (Continued) Miscellaneous Employees Three -Year Trend Information (20) 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 elfinsured 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. 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. 33 Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obligation 6/30/98 $218,983 100% -0- 6/30/99 219,350 100% -0- 6/30/00 128,123 100% -0- Required Supplementary Information ($ amount in thousands) Entry Age Normal Actuarial Unfunded Annual UAAL Accrued Value Liability/ Covered As a % of Valuation Date Liabili of Assets Excess Assets Funded Status Payroll Payroll 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%) 06/30/98 4,389,078 5,957,276 (1,568,198) 135.7% 3,075,703 (50.987%) (20) 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 elfinsured 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. 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. 33 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (20) Claims Payable/Self Insurance, (Continued) Workers Compensation The City also participates in the workers compensation poral administered by the Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The City of La Quints 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. (21) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2000 exceeded the appropriations of the following funds/departments: General funds: City manager Fiscal services Building and safety administration Building Civic center building Public works administration Capital projects administration Special revenue funds: South Coast Air Quality Low/Moderate Bond Project Area No. 1 Debt service funds: Financing Authority Redevelopment Agency Project Area No Capital projects funds: A.D. 97-1 LQ Norte Construction Fund 34 Budget Actual Variance 201,120 246,023 (44,903) 265,203 311,476 (46,273) 191,550 191,787 (237) 514,673 592,238 (77,565) 559,656 578,848 (19,192) 1,281 110,008 (108,727) (426,492) (18,439) (408,053) 5,700 7,573 (1,873) 63,101 67,695 (4,594) 688,690 689,318 (628) 11,785,811 12,117,501 (331,690) 125,584 (125,584) CITY OF LA QUINTA Notes to the Financial Statements (Continued) (22) Contingencies Various claims and suits have been filed against the City in the normal course of operations. Although the outcome of these lawsuits is not presently determinable, iul the opinion of management, the resolution of these matters will not have a material adverse effect on the financial position of the City. (23) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 2000 are as follows: General Fund Special Revenue Funds: Local Law Enforcement Block Grant Low/Mod income Housing PA No. 1 Low/Mod Income Housing PA No. 2 Low/Mod Bond - PA No. 1 Low/Mod Bond - PA No. 2 Debt Service Funds: Redevelopment Agency PA No. 2 Financing Authority Capital Projects Funds: Infrastructure Fund Capital Improvement Fund Redevelopment Agency PA No. 1 Redevelopment Agency PA No. 2 _(24)L Notes Receivable Current Current Interfund Interfund Receivables Payables $796,464 575 - 30 - 20 - 636,985 - 148,595 - 591 - 10,116 601,430 - - 601,430 - 95 591 48 $1,398,485 1398,485 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, 2000, the outstanding balance plus accrued interest is $2,664,997. At June 30, 2000, the total outstanding balance of all notes receivable (including other notes aggregating $13,635) is $2,678,632. 35 CITY OF LA QUINTA Notes to the Financial Statements (Continued) (25) Proposition 218 Recent developments, including the voters' enactment of Proposition 218 in November 1996, have affected the manner in which local governments may impose, extend or increase certain taxes, assessments and property -related fees. The more significant changes which may affect local government revenue streams are as follows: 1. If there is a majority protest against an assessment, the assessment cannot be imposed. This means that increasing an assessment requires majority voter approval. 2. Certain fees are defined as property -related. Some property -related fees require voter approval at an election; others allow for a majority protest but do not require an election. Property -related fees must comply with certain substantive provisions of Proposition 218, which generally limit the amount of fees. 3. Any local tax, assessment, fee or charge is subject to reduction or repeal by initiative. Uncertainty exists as to the scope and impact of these developments on local government revenue streams. Future legislation and litigation may resolve some of these uncertainties. (26) Construction Commitments The following material construction commitments existed at June 30, 2000: 36 Expenditures as of Remaining Project Name June 30, 2000 Commitments Washington Storm Drain $ 23,760 397,690 Miles/Washington St. Widening 1,627,543 693,815 Village Development 106,566 914,683 Civic Center Campus 92,119 957,305 Phase VI -Sagebrush, Bottlebrush 115,309 1,059,790 Catellus Senior Apartments 777,889 1,224,788 Catellus Single Family Housing 3,971,689 1,578,159 Phase VI -Village Commercial Area 140,483 2,538,693 Phase VI -Westward Ho 236,901 2,674,619 Phase VI -Cove Area 411,127 3,617,778 CVAG/Jefferson Phase 1 2,927,711 13,257,222 36 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 Cleric, Community Development, Police Services, Public Works, Building and Safety, and Community Services. 37 CITY OF LA QUINTA General Fund Statement of Expenditures - Budget and Actual Year ended June 30, 2000 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 38 Budget Actual Variance - Favorable (Unfavorable) $ 498,166 405,857 92,309 201,120 246,023 (44,903) 892,650 814,903 77,747 365,855 249,713 116,142 265,203 311,476 (46,273) 574,246 552,696 21,550 264,390 233.936 30.454 3,061,630 2,814,604 247,026 3,186,149 3,084,646 101,503 191,550 191,787 (237) 425,935 358,775 67,160 163,602 133,602 30,000 514,673 592,238 (77,565) 46,900 43,654 3,246 20,000 9,261 10,739 559,656 578,848 (19,192) 5,108,465 4,992,811 115,654 232,170 222,931 9,239 557,414 490,471 66,943 67,750 55,126 12,624 857,334 768,528 88,806 454,339 266,430 187,909 878,099 482,519 395,580 1,332,438 748,949 583,489 1,281 110,008 (108,727) 776,144 754,425 21,719 861,624 517,252 344,372 365,503 341,750 23,753 (426,492) (18,439) (408,053) 1,578,060 1,704,996 (126,936) $ 11,937,927 11,029,888 908,039 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures which are legally required to be accounted for in a separate fund. The City of La Quinta has the following 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. Federal Assistance Fund - To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. Lighting and Landscape Special Assessment District 89-1 Fund - To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. State Law Enforcement Block Grant (SLEBG) Fund - To account for state funded "Citizens for Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti -gang community crime prevention. Quimby Fund - To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. La Quinta Public Safety Officer Fund - To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. 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. Redevelopment Agency, Low and Moderate Bond Fund P.A. No. 1 and No. 2 Funds - To account for bond proceeds and expenditures of bond -financed low and moderate income housing programs. 39 CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 2000 40 Lighting State Federal and Public Village Gas Tax Assistance Landscape SLEBG Quimby Safety Parking Assets Cash and investments $ 123,585 - 94;747 73,731 574,778 8,910 30,120 Cash with fiscal agent - - - - - _ _ Accounts receivable - Interest receivable - Notes receivable - - - Due from other governments - - 18,965 - - - - Advances to other funds - _ - _ _ _ _ Total assets $ 123,585 - 113,712 73,731 574,778 8,910 30,120 Liabilities and Fund Balances Liabilities: Accounts payable Deposits payable Due to other funds Total liabilities Fund balances: Reserved for: Bond projects Advances to other funds Notes receivable Unreserved: Designated for operations/ projects/transfers 123,585 - 113,712 73,731 574,778 8,910 30,120 Undesignated - - _ _ _ _ _ Total fund balances 123,585 - 113,712 73,731 574,778 8,910 30,120 Total liabilities and fund balances $ 123,585 113,712 73,731 574,778 8,910 30,120 40 Low/ Low/ 6,110,194 - - 511,903 39,135 - - 551,038 551,038 Moderate Moderate Low/ Low/ 3,338,230 - 192,295 7,942,647 6,490,095 Income Income Moderate Moderate 3,377,365 1,741,539 2,508,718 15,230,441 15,095,732 South Coast Housing- Housing- Bond- Bond- Totals Air Quality LLEBG PA No. 1 PA No. 2 PA No. 1 PA No. 2 2000 1999 35,909 737 3,491,036 3,346,138 - 341,716 8,121,407 6,457,004 - - - - 2,386,620 2,316,423 4,703,043 6,110,194 - - 59,451 - - - 59,451 44,006 - - - - 833 - 833 229,099 - - 2,678,632 - - - 2,678,632 2,556,508 - - - - - - 18,965 19,275 - - 511,903 39,135 - - 551,038 551,038 35,909 737 6,741,022 3,385;273 2,387,453 2,658,139 16,133,369 15,967,124 84,274 7,888 8,929 826 101,917 40,807 - 14,806 - - - 14,806 54,604 575 30 20 636,985 148.595 786,205 775,981 575 99,110 7,908 645,914 149,421 902,928 871,392 - - - - 2,386,620 2,316,423 4,703,043 6,110,194 - - 511,903 39,135 - - 551,038 551,038 - - 2,678,632 - - - 2,678,632 2,556,508 35,909 - 3,451,377 3,338,230 - 192,295 7,942,647 6,490,095 - 162 - - (645,081 - (644,919) (612,103) 35,909 162 6,641,912 3,377,365 1,741,539 2,508,718 15,230,441 15,095,732 35,909 737 6,741,022 3,385,273 2,387,453 2,658,139 16,133,369 15,967,124 41 CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2000 42 Lighting Gas Federal and Public Village Tax Assistance Landscape SLEBG Quimby Safety Parking Revenues: Taxes $ Developer fees - - 34,840 - 370,640 - - Intergovernmental 406,326 30,000 - 48,372 - - - Investment income 5,332 - - 4,411 18,116 4,600 1,495 Special assessments - - 785,794 - - - - Rental income - - - Gain (loss) on sale of land - - - - - - Total revenues 411,658 30,000 820,634 52,783 388,756 4,600 1,495 Expenditures: Current: Planning and development - _ - - - - - Public works 395,400 - 764,400 - - - - Total expenditures 395,400 - 764.400 - - - - Excess (deficiency) of revenues over (under) expenditures 16,258 30,000 56,234 52,783 388.756 4,600 1,495 Other financing sources (uses): Operating transfers in - - - - - 2,000 - Operating transfers out (30,000) (12,705) 39( ,910) (12,356 - - Total other financing sources (uses) - (30,000) (12,705) 39,910 12,356 2,000 - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 16,258 - 43,529 12,873 376,400 6,600 1,495 Fund balances at beginning of year 107,327 - 70,183 60,858 198,378 2,310 28,625 Fund balances at end of year $ 123,585 - 113,712 73,731 574.778 8,910 30,120 42 (1,739,297) 338,842 (1,570,149) 373,267 (3,367,992) (5,169,633) 17,345 Low/ Low/ (1,605,226) 357,392 134,709 (1,765,080) 18,564 Moderate Moderate Low/ Low/ 15,095,732 16,860,812 35,909 Income Income Moderate Moderate 15,230,441 15,095,732 South Coast Housing- Housing- Bond- Bond- Totals Air Quaility LLEBG PA No. 1 PA No. 2 PA No. 1 PA No. 2 2000 1999 - 3,194,919 1,254,407 - - 4,449,326 3,592,472 - - 48,860 - - - 454,340 650,735 23,545 - - - - - 508,243 596,177 1,373 162 267,399 151,458 32,618 8,734 495,698 1,070,240 - - - - - - 785,794 759,273 - - 404,752 - - - 404,752 414,236 - - 361,102 - - - 361,102 195,945 24,918 162 4,277,032 1,405,865 32,618 8,734 7,459,255 7,279,078 7,573 - 2,164,104 532,773 67,695 24,609 2,796,754 2,704,025 - - - - - - 1,159,800 1,170,500 7,573 - 2,164,104 532,773 67,695 24,609 3,956,554 3,874,525 17,345 162 2,112,928 873,092 (35,077) (15,875) 3,502,701 3,404,553 - - - - - 373,267 375,267 11,781 - - .1,739,29 (338,842 (1,570,149 - (3,743,259) (5,181,414) (1,739,297) 338,842 (1,570,149) 373,267 (3,367,992) (5,169,633) 17,345 162 373,631 534,250 (1,605,226) 357,392 134,709 (1,765,080) 18,564 _ 6,268,281 2,843,115 3,346,765 2,151,326 15,095,732 16,860,812 35,909 162 6,641,912 3,377,365 1,741,539 2,508,718 15,230,441 15,095,732 43 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, 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 389,900 406,326 16,426 384,524 Investment income 5,500 5,332 168 4,906 Total revenues 395,400 411,658 16,258 389,430 Expenditures: Current: Public works 395,400 395,400 - 368,800 Total expenditures 395,400 395,400 - 368,800 Excess (deficiency) of revenues over (under) expenditures - 16,258 16,258 20,630 Fund balances at beginning of year 107,327 107,327 - 86,697 Fund balances at end of year $ 107,327 123,585 16,258 107,327 44 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, 2000 45 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 250,400 30,000 (220,400) 30,000 Investment Income - - - - Total revenues 250,400 30,000 (220,400 30,000 Other financing sources (uses): Operating transfers out (130,000 (30,000 100,000 (30,000) Total other financing sources (uses) (130,000 (30,000) 100,000 (30,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 120,400 - (120,400) Fund balances at beginning of year - - - - Fund balances at end of year $ 120,400 - (120,400) 45 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, 2000 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 Variance - Favorable Budget Actual (Unfavorable) $ - 34,840 34,840 200 - (200) 764,200 785,794 21,594 764,400 820,634 56,234 764,400 764,400 - 764,400 764,400 - 56,234 56,234 1999 7,000 1,655 759,273 767,928 801,700 801,700 33,772) 12,705 12,705 - (131,333) 12,705 12,705 - (131,333) (12,705) 43,529 56,234 (165,105) 70,183 70,183 - 235,288 $ 57,478 113,712 56,234 70,183 46 CITY OF LA QUINTA Special Revenue Funds SLEBG Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 47 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ - 48,372 48,372 46,246 Investment income 1,100 4,411 3,311 2,495 Total revenues 1,100 52,783 51,683 48,741 Other financing sources (uses): Operating transfers out - (39,910) 39,910 693 Total other financing sources (uses) - 39,910) 39,910 693 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,100 12,873 11,773 48,048 Fund balances at beginning of year 60,858 60,858 - 12,810 Fund balances at end of year S 61,958 73,731 11,773 60,858 47 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, 2000 Revenues: Developer fees 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 235,000 (204,000) 198,378 $ 5,622 48 12,356 222,644 376,400 198,378 574,778 580,400 580,400 1999 Actual 5,520 10,422 -.- 15,942 182,436 198,378 Variance - Favorable Budget Actual (Unfavorable) $ 20,000 370,640 350,640 11,000 18,116 7,116 31,000 388,756 357,756 235,000 12,356 222,644 235,000 (204,000) 198,378 $ 5,622 48 12,356 222,644 376,400 198,378 574,778 580,400 580,400 1999 Actual 5,520 10,422 -.- 15,942 182,436 198,378 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, 2000 49 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Investment Income $ 200 4,600 4,400 310 Total revenues 200 4,600 4,400 310 Other financing sources (uses): Operating transfers in 2,000 2,000 - 2,000 Total other financing sources (uses) 2,000 2,000 - 2,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 2,200 6,600 4,400 2,310 Fund balances at beginning of year 2,310 2,310 - - Fund balances at end of year $ 4,510 8,910 4,400 2,310 49 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, 2000 611, Variance - Favorable 1999 Budget Actual (Unfavorable} Actual Revenues: Investment income $ 1,600 1,495 105 1,510 Total revenues 1,600 1,495 (105) 1,510 Fund balances at beginning of year 28,625 28,625 - 27,115 Fund balances at end of year $ 30,225 30,120 105 28,625. 611, 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, 2000 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 5,700 7,573 Variance - 7,573 $ 38,108 Favorable Budget Actual (Unfavorable) $ 21,244 23,545 2,301 4,000 1,373 2,627 25,244 24,918 326 5,700 7,573 5,700 7,573 $ 38,108 19,544 17,345 19,544 17,345 18,564 18,564 $ 38,108 35,909 51 1,873 1,873 2,199 (2,199) 1999 Actual 15,810 3,590 19,400 19,400 69,205 69,205 (49,805) 68,369 18,564 CITY OF LA QUINTA Special Revenue Funds LLEBG Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 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 Budget $ 27,208 27,208 $ 27,208 52 Variance - Favorable 1999 Actual (Unfavorable) Actual - (27,208) 27,958 162 162 566 162 27,046 28,524 - - 9,781 - - 48,523 - - (38,742) 162 (27,046) (10,218) 10L (4 /,U40) - 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, 2000 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 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 2,343,956 2,164,104 Variance - 2,127,114 2,343,956 2,164,104 Favorable 1999 Budget Actual (Unfavorable) Actual 893,453 1,349,931 $ 2,872,431 3,194,919 322,488 2,575,456 - 48,860 48,860 15,911 200,000 267,399 67,399 275,497 341,000 404,752 63,752 414,236 150,000 361,102 211,102 195,945 3,563,431 4,277,032 713,601 3,477,045 2,343,956 2,164,104 179,852 2,127,114 2,343,956 2,164,104 179,852 2,127,114 1,219,475 2,112,928 893,453 1,349,931 (1,739,297) 1,739,297) - (1,099,888 (1,739,297) 1,739,297 - (1,099,888) (519,822) 373,631 893,453 250,043 6,268,281 6,268,281 - 6,018,238 $ 5,748,459 6,641,912 893,453 6,268,281 53 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, 2000 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 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) $ 1,127,669 1,254,407 126,738 20,700 151,458 130,758 1,148,369 I,405,865 257,496 1,389,320 532,773 856,547 1,389,320 532,773 856,547 (240,951) 873,092 1,114,043 1,481,053) 338,842 1,142,211 (1,481,053) 338,842 1,142,211 (1,722,004) 2,843,115 $ 1,121,111 54 534,250 2,843,115 3,377,365 2,256,254 2,256,254 1999 ♦ I 1 1,017,016 622,304 139,342 1,778,662 471,575 471,575 1,307,087 202,749 (202,749 1,104,338 1,73 8,777 2,843,115 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, 2000 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 - Favorable 1999 Budget Actual (Unfavorable) Actual $ - 32,618 32,618 490,032 32,618 32,618 490,032 63,101 67,695 4,594) 45,011 63,101 67,695 4,594 45,011 63,101) 35,077 28,024 445,021 (3,230,884) (1,570,149 1,660,735 (2,392,558 (3,230,884) (1,570,149 1,660,735 (2,392,558) (3,293,985) (1,605,226) 1,688,759 (1,947,537) 3,346,765 3,346,765 - 5,294,302 $ 52,780 1,741,539 1,688,759 3,346,765 55 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, 2000 Revenues: Investment income Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ - 8,734 8,734 139,915 8,734 8,734 139,915 50,374 24,609 25,765 60,325 50,374 24,609 25,765 60,325 50,374 (15,875 34,499 79,590 - 373,267 373,267 - (1,881,526) - 1,881,526 (1,109,016) (1,881,526) 373,267 2,254,793 (1,109,016) (1,931,900) 357,392 2,289,292 (1,029,426) 2,151,326 2,151,326 - 3,180,752 $ 219,426 2,508,718 2,289,292 2,151,326 56 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 Fund - To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center debt obligation. Redevelopment Agency. P.A. No. 1 and No. 2 - To account for the accumulation of resources for the payment of debt service for bond principal interest and trustee fees. 57 CITY OF LA QUINTA Debt Service Funds Combining Balance Sheet June 30, 2000 58 Financing Redevelopment Redevelopment Totals Authority Agency -PA No. 1 Agency -PA No. 2 2000 1999 Assets Cash and investments $ - 4,281,480 1,436,577 5,718,057 3,641,336 Cash with fiscal agent 29 255,172 164 255,365 183,975 Accounts receivable - - - - 504 Prepaid items - 332,088 - 332,088 - Interest receivable - - - - 37,465 Due from other governments - - Total assets $ 29 4,808,740 1 436 741 6,305,510 3,863,291 Liabilities and Fund Balances Liabilities: Accounts payable $ - 4,503 - 4,503 4,403 Due to other funds 10,116 - 591 10,707 9,896 Due to other governments - 165,363 424,472 589,835 - Advances from other funds - 511,903 39,135 551,038 551.038 Total liabilities 10,116 681,769 464,198 1,156,083 565,337 Fund balances: Reserved for: Prepaid items - 332,088 - 332,088 - Debt service - 3,854,883 972,543 4,827,426 3,306,726 Unreserved: Undesignated (10,087 - - (10&87) (8,772 Total fund balances (10 087 4,186,971 972,543 5,149,427 3,297,954 Total liabilities and fund balances $ 29 4,868,740 1,436,741 6,305,510 3,863,291 58 CITY OF LA QUINTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2000 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 Totals Authority Agency -PA No. 1 Agency -PA No.2 2000 1999 3,405,000 429,670 3,707,492 1,042,718 $ - 12,779,677 5,017,628 17,797,305 14,369,887 - 588,883 52,296 641,179 213,126 679,670 - - 679,670 684,573 679,670 13,368,560 5,069,924 19,118,154 15,267,586 9,648 214,629 82,987 307,264 270,566 250,000 1,352,660 152,340 1,755,000 3,405,000 429,670 3,707,492 1,042,718 5,179,880 5,001,240 - 6,842,720 3,716,567 10,559,287 8,728,082 689,318 12,117,501 4,994,612 17,801,431 17,404,888 (9,648) 1,251,059 75,312 1,316,723 2,137,302 8,333 1,739,297 338,842 2,086,472 1,569,263 - (1,855,699) (493,939) (2,349,638) (1,254,118) - 362,208 435,708 797,916 833,402 8,333 245,806 280,611 534,750 1,148,547 (1,315) 1,496,865 355,923 1,851,473 (988,755) (8,772) 22690,106 616,620 3,297,954 4,286,709 $ 1 4,186,971 972,543 5,149,427 3,297,954 59 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, 2000 Revenues: Investment income Rental income Total revenues Expenditures: Current: Planning and development Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year 9,020 Variance - 250,000 Favorable Budget Actual (Unfavorable) $ 18,000 - (18,000) 679,670 679,670 - 697,670 679,670 18,000 9,020 9,648 250,000 250,000 429,670 429,670 688,690 689,318 8,980 9,648 8,333 8,333 8,980 (1,315) 8,772 8,772 $ 208 10,087 60 (628) 628 18,628 8,333 8,333 (10,295) 10,295 1999 Actual 264 684,573 9,036 245,000 43 9, 573 693,609 8,772 (8,772) (8,772) 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, 2000 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 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 $ 11,489,722 11,489,722 221,000 1,352,660 3,703,920 6,508,231 11,785,811 (296,089) 1,739,297 (1,855,699) 358,636 242,234 (53,855) 2,690,106 $ 2,636,251 61 Variance - Favorable Actual Unfavorable 12,779,677 588,883 13,368,560 214,629 1,352,660 3,707,492 6,842,720 12,117,501 1,251,059 1,739,297 (1,855,699) 362,208 245,806 1,496,865 2,690,106 4,186,971 1,289,955 588,883 1,878,838 6,371 (3,572) 334,489 331,690 1999 Actual 10,301,824 131,849 10,433,673 193,047 2,092,128 3,578,729 5,882,820 11,746,724 1,547,148 1,313,051) 1,366,514 - (511,509) 3,572 371,521 3,572 1,226,526 1,550,720 (86,525) - 2,776,631 1,550,720 2,690,106 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, 2000 M Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 4,510,675 5,017,628 506,953 4,068,063 Investment income - 52,296 52,296 81,013 Total revenues 4,510,675 5,069,924 559,249 4,149,076 Expenditures: Current: Planning and development 74,350 82,987 (8,637) 68,483 Debt service: Principal 152,340 152,340 - 1,067,872 Interest 1,146,887 1,042,718 104,169 982,938 Payments under pass-through obligations 3,687,871 3,716,567 (28,696) 2,845,262 Total expenditures 5,061,448 4,994,612 66,836 4,964,555 Excess (deficiency) of revenues over (under) expenditures (550,773) 75,312 626,085 (815,479 Other financing sources (uses): Operating transfers in 338,842 338,842 - 202,749 Operating transfers out (494,139) (493,939) 200 (742,609) Proceeds of advances 435,711 435,708 (3) 461,881 Total other financing sources (uses) 280,414 280,611 197 (77,979 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (270,359) 355,923 626,282 (893,458) Fund balances at beginning of year 616,620 616,620 - 1,510,078 Fund balances at end of year $ 346,261 972,543 626,282 616,620 M 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, prior to adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this date, and is budgeted by the Council through adoption of the annual capital improvement program budget. Transportation Fund, Parks and Recreation Fund, Civic Center Fund Library Development Fund Coiranunity Center Fund Street Facility Fund Park. Facility Fund — To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City's infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Six new funds have been established to account for the specific impact areas of these fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program budget. 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 Quinta Norte Construction Fund - To account for the bond proceeds and other funding that will be used for improvements to Assessment District 97-1. Assessment District 2000-1 Phase VI Fund — To account for the bond proceeds and other funding that will be used for improvements to Assessment District 2000-1. Financing Authority_ Capital Projects Fund - To account for the Public Financing Authority bond proceeds that will be used for specific projects and programs of the City. Funds Area 1 and 2 - To proceeds, interest and other funding that will be use( and land acquisition. 63 account for the bond it, planning, construction CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 2000 Capital Parks & Civio Library Community Infastructure Improvement Transportation_ Recreation Center Devel�o.ment Center Assets Cash and investments $ 5,875,616 1,244,744 801,927 571,418 746,272 335,529 151,957 Cash with fiscal agent - - - - Accounts receivable - 3,450 - - - - Interest receivable 115,867 Notes receivable - - - - Due from other funds 601,430 - - - - - Due from other governments - 601,430 - - - - - Total assets S 6,592.913 1,849,624 801,927 571,418 746,272 335,529 151,957 Liabilitics and Fund Balances Liabilities: Accounts payable $ - 657,536 Deferred revenue - 479,150 - - - - - Deposits payable - - Retainage payable - - - Due to other funds 601,430 - Advances from other funds - 111,508 - - - - - Total liabilities 1,849,624 - - - - - Fund balances: Reserved for: Bond projects - - Notes receivable - - - - - Unreserved: Designated for operations/projects 6,592,913 - 801,927 571,418 746,272 335,529 151,957 Undesignated - - - - - - - Total fund balances 6,592,913 - 801,927 571,418 746,272 335,529 151,957 Total liabilities and fund balances S 6,592,913 1,849,624 801,927 571,418 746,272 335,529 151,957 64 A.D. 97-1 Financing Redevelopment Redevelopment Street Park LQ Norte A.D. 2000-1 Authority Agency Agency Facility Facility Construction Phase VI Projects PANo.l PANo.2 Totals 2000 1999 30,662 9,188 59,654 2,360,724 6 1,172,282 2,961,907 16,321,886 14,462,268 - - - - 587,689 6,800,003 632,837 8,020,529 8,504,138 - - 60,900 64,350 60,900 - - 115,867 124,439 - - - - 112,343 591 602,021 - 601,430 91,970 30,662 9,188 59,654 2360.724 587,695 7,972,285 3,656,235 25,726,083 23356,058 7,284 7,284 4,918 21,840 691,578 564,041 479,150 - - 899,524 - 163,467 95 48 601,573 13,735 111,508 835,969 5,013 21,888 1,883,809 2,476,736 59,654 2,353,440 587,695 6,800,003 632,837 10,433,629 8,684,932 - - - - - - - - 112,343 30,662 9,188 - - - 1,167,269 3,001,510 13,408,645 12,095,000 - - - - - - - (12,953) 30,662 9.188_ 59,654 2,353,440 _587,695 7,967,272 3,634„347 23,842,274 20,879,322 30,662 9.188 59,654 2,360,724 587,695 7,972 285 3,656,235 25,726,083 23,356,058 65 CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2000 66 Capital Parks & Civic Library Community Infastructure Improvement Transportation Recreation Center Development Center Revenues: Developer fees $ 722,117 563,056 779,825 556,103 725,367 326,539 147,886 Intergovemmental - 3,728,384 - - - - Investment income 408,366 - 22,102 15,315 20,905 8,990 4,071 Special assessments - _ _ _ - _ - Litigation settlement proceeds Proceeds of debt without government commitment - _ _ _ Total revenues 1,130,483 4,291,440 801,927 571,418 746,272 335,529 151,957 Expenditures: Current: Planning and development - _ _ _ _ - _ Capital projects 266,909 11,956,629 Total expenditures 266,909 11,956,629 - - - - _ Excess (deficiency) of revenues over (under) expenditures 863,574 (7,665,18_9) 801,927 571.418 746,272 335,529 151,957 Other financing sources (uses): Operating transfers in - 7,665,189 - - - _ _ Operathi , transfers out (3,905,989) Proceeds of advances Total other financing sources (uses) (3,905,4$9) 7,665,189 - - - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (3,042,415) - 801,927 571,418 746,272 335,529 151,957 Fund balances at beginning of year 9,635,328 _ _ _ _ - Residual equity transfer _ _ _ _ _ _ Fund balances at end of year $ 6,592,913 - 801,927 571,418 T46,2T2 335,529 151,957 66 30,662 9,188 (121,140) 2,606,186 6,440 (344,535) 1,464,209 3,215,698 5,120,524 - - 180,794 - 581,255 8,311,807 2,170,138 20,879,322 15,857,561 - - (252,746) - - - (252,746) (98,763) 3(1,662 9,189 59,654 2,353,440 597.695 7,907,272 3.034.347 23,842,274 20,879.322 67 A.D. 97-1 Street Park LQ Norte A.D. 2000-1 Financing Redevelopment Redevelopment Totals Facility Facility Construction Phase VI Authority Agency-PA No.l Agency-PA No.2 2000 1999 26,162 8,934 - - - - 5,000 3,860,989 4,663,006 - - - - - - - 3,728,384 1,133,477 4,500 254 4,444 20,336 14,773 11,413 98,028 633,497 841,769 - - - 345,837 - - - 345,837 38,493 - - - - - - - - 821,589 - - - 2,240,013 - - 2,240,013 705,262 30,662 9,188 4,444 2,606,186 14,773 11,413 103,028 10,808,720 8,203,596 - - 125,584 - - 783,471 400,721 1,309,776 1,147,357 - - - - 106,773 - 12,330,311 6,977,895 - - 125,584 - - 890,244 400,721 13,640,087 8,125,252 30,662 9,188 121,140 2,606,186 14,773 (878,831) (297,693} (2,831,367) 78,344 _ _ _ - - 1,855,699 493,939 10,014,827 6,887,847 - (8,333) (1,429,676) (232,037) (5,575,035) (1,845,667) - - - - 107,2.73 1,500,000 1,607,273 - - - - - 8,333 534,296 1761,902 6,047,065 5,042,180 30,662 9,188 (121,140) 2,606,186 6,440 (344,535) 1,464,209 3,215,698 5,120,524 - - 180,794 - 581,255 8,311,807 2,170,138 20,879,322 15,857,561 - - (252,746) - - - (252,746) (98,763) 3(1,662 9,189 59,654 2,353,440 597.695 7,907,272 3.034.347 23,842,274 20,879.322 67 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, 2000 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 (6,239,275) $ 3,396,053 68 (3,042,415) 3,196,860 3,994,586 Variance - 5,640,742 6,592,913 3,196,860 9,635,328 Favorable 1999 Budtet Actual (Unfavorable) Actual $ 1,066,500 722,117 (344,383) 4,417,323 431,000 408,366 (22,634 520,694 1,497,500 1,130,483 367,017 4,938,017 313,610 266,909 46,701 205,395 313,610 266,909 46,701 205,395 1,183,890 863,574 320,316) 4,732,622 - - - 91,639 (7,423,165) 3,905,989 3,517,176 829,675) 7,423,165 (3,905,989 3,517,176 (738,036) (6,239,275) $ 3,396,053 68 (3,042,415) 3,196,860 3,994,586 9,635,328 - 5,640,742 6,592,913 3,196,860 9,635,328 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, 2000 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 69 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ 1,025,653 563,056 (462,597) 240,683 15,849,898 3,728,384 (12,121,514) 1,133,477 16,875,551 4,291,440 (12,584,111) 1,374,160 43,816,710 11,956,629 31,860,081 6,772,500 43,816,710 11,956,629 31,860,081 6,772,500 (26,941,159) 7,665,189) 19,275,970 5,398,340) 26,941,159 7,665,189 (19,275,970) 5,398,340 26,941,159 7,665,189 (19,275,970) 5,398,340 69 CITY OF LA QUINTA Capital Projects Funds Transportation Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Developer fees $ - 779,825 779,825 - Investment income w 22,102 22,102 - Total revenues - 801,927 801,927 - Fund balances at beginning of year - - - - Fund balances at end of year $ - 801,927 801,927 - 70 CITY OF LA QUINTA Capital Projects Funds Parks and Recreation Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Developer fees Investment income Total revenues Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) 71 556,103 15,315 571,418 571,418 556,103 15,315 571,418 573,4]8 1999 Actual CITY OF LA QUINTA Capital Projects Funds Civic Center Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Developer fees Investment income Total revenues Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (1LTdavorable) 725,367 20,905 /1A/ ^1/ $ - 746,272 72 725,367 20,905 746,272 746,272 1999 Actual CITY OF LA QUINTA Capital Projects Funds Library Development Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Developer fees Investment income Total revenues Fund balances at beginning of year Fund balances at end of year Variance - Favorable Budget Actual (Unfavorable) 73 326,539 8,990 '2�2c cnn 335,529 326,539 8,990 335,529 335,529 1999 Actual CITY OF LA QUINTA Capital Projects Funds Community Center Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Developer fees $ - 147,886 147,886 - Investment income - 41071 4,071 - Total revenues - 151,957 151,957 - Fund balances at beginning of year - - - - Fund balances at end of year $ - 151,957 151,957 - 74 CITY OF LA QUINTA Capital Projects Funds Street Facility Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Developer fees $ - 26,162 26,162 - Investment income 4,500 4,500 - Total revenues - 30,662 30,662 - Fund balances at beginning of year - - - - Fund balances at end of year $ - 30,662 30,662 - 75 CITY OF LA QUINTA Capital Projects Funds Park Facility Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Developer fees Investment income Total revenues Fund balances at beginning of year Fund balances at end of year Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ _ 8,934 8,934 _ - 254 254 - - 9,188 9,188 $ - 9,188 9,188 76 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, 2000 Revenues: Investment income Special assessments Total revenues Expenditures: Current: Planning and development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds of bonds (net of issuance costs) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Residual equity transfer Fund balances at end of year 705,262 _ - 705,262 - (121,140) 180,794 180,794 $ 180,794 59,654 77 (121,140) 279,557 - 98,763 121,140 180,794 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ - 4,444 4,444 5,644 _ _ - 38,493 - 4,444 4,444 44,137 - 125,584 (125,584 469,842 - 125,584 125,584 469,842 - 121,140 121,140 425,705 705,262 _ - 705,262 - (121,140) 180,794 180,794 $ 180,794 59,654 77 (121,140) 279,557 - 98,763 121,140 180,794 CITY OF LA QUINTA Capital Projects Funds A.D. 2000-1 Phase VI Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Investment income Special assessments Total revenues Other financing sources (uses): Operating transfers out Proceeds of bonds (net of issuance costs) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Residual equity transfer Fund balances at end of year 11 2,606,186 2,606,175 - -(252,746 252,746) $ 11 2,353,440 2,353,429 - 78 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ - 20,336 20,336 - - 345,837 345,837 - - 366,173 366,173 - (2,806,689) - 2,806,689 - 2,806,700 2,240,013 (566,687) - 11 2,240,013 2,240,002 - 11 2,606,186 2,606,175 - -(252,746 252,746) $ 11 2,353,440 2,353,429 - 78 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, 2000 Revenues: Investment Income Total revenues Other financing sources (uses).- Operating 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 (517,732) 8,333 (517,732) 581,255 $ 63,523 79 6,440 581,255 587,695 509,399 48,770 524,172 524,172 (8,049) 581,255 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ - 14,773 14,773 40,721 - 14,773 14,773 40,721 (517,732) 8,333 509,399 48,770 (517,732) 8,333 (517,732) 581,255 $ 63,523 79 6,440 581,255 587,695 509,399 48,770 524,172 524,172 (8,049) 581,255 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, 2000 Revenues: Investment income 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 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 at end of year Budget $ 125,000 125,000 939,978 115,000 1,054,978 (929,978) 1,855,699 (5,855,940) 115,000 Variance - 878,831) 1,855,699 (1,428,676) 107,273 51,147 4,427,264 (7,727) 629,759 655,259 (278,887) (3,885,241) Favorable 1999 Actual (Unfavorable) Actual 11,413 (113,587) 164,275 - - 821,589 11,413 113,587 985,864 783,471 156,507 356,105 106,773 8,227 - 890,244 164,734 356,105 878,831) 1,855,699 (1,428,676) 107,273 51,147 4,427,264 (7,727) 629,759 655,259 (278,887) (3,885,241) 534,296 4,419,537 376,372 (4,815,219) (344,535) 4,470,684 1,006,131 8,311,807 8,311,807 - 7,305,676 $ 3,496,588 7,967,272 4,470,684 8,311,807 80 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, 2000 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 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 at end of year Variance - Favorable 1999 Budget Actual (Unfavorable} Actual $ - 5,000 5,000 5,000 20,000 98,028 78,028 110,435 20,000 103,028 83,028 115,435 432,033 400,721 31,312 321,410 432,033 400,721 31,312 321,410 (412,033) (297,693 1,994,139 (2,506,764) 493,939 (232,037) 1,500,000 114,340 (1,500,200) 2,274,727 1,500,000 (205,975) 742,609 (688,335) (512,625) 1,761,902 2,274,527 54,274 (924,658) 1,464,209 2,388,867 (151,701) 2,170,138 2,170,138 - 2,321,839 $ 1,245,480 3,64,347 2,388,867 2,170,138 81 (This page intentionally left blank) 82 AGENCY FUND 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, 90-1, 91-1. 92-1, 97-1,. 2000-1 - To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. 83 CITY OF LA QUINTA Agency Funds Combining Balance Sheet June 30, 2000 Arts in Public Places Assessment District No. 88-1 Assessment District No. 89-2 Assessment District No. 90-1 Assets Cash and investments $ 670,159 169,150 228,282 212,518 Total assets $ 670,159 169,150 228,282 212,518 Liabilities Accounts payable $ 694 - - Deposits payable 669,465 - - - Due to bondholders - 169,150 228,282 212,518 Total liabilities $ 670,159 169,150 228,282 212,518 84 Assessment District No. 91-1 Assessment District No. 92-1 Assessment District No. 97-1 Assessment District Totals 2000 1999 457,828 339,630 123,312 282,927 2,483,806 2,214,268 457,828 339,630 123,312 282,927 2,483,806 2,214,268 v - - 694 423 - - - - 669,465 642,064 457,828 339,630 123,312 282,927 1,813,647 1,571,781 457,828 339,630 123,312 282,927 2,483,806 2,214,268 85 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 2000 1 Balance at Balance at .lulu 1, 1999 Additions Deletions June 30, 2000 ARTS IN PUBLIC PLACES Assets Cash and investments $ 642,487 421,927 394,255 670,159 Liabilities Accounts payable $ 423 21,912 (21,641) 694 Deposits payable 642,064 416,120 (388,719) 669,465 Total liabilities $ 642,487 438,032 410,360) 670,159 ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments $ 199,919 99,092 (129,861 169,150 Liabilities Due to bondholders $ 199,919 142,611 (173,380 169,150 ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments $ 228,604 167,732 (168,054) 228,282 Liabilities Due to bondholders $ 228,604 195,421 195,743) 228,282 1 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) 87 Balance at Balance at July 1, 1999 Additions Deletions June 30., 2000 ASSESSMENT DISTRICT NO, 90-1 Assets Cash and investments $ 257,208 141,505 (186,195 212,518 Liabilities Due to bondholders $ 257,208 103,118 (147,808 212,518 ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments $ 444,213 381,592 (367,977) 457,828 Liabilities Due to bondholders $ 444,213 460,557 (446,942) 457,828 ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments $ 340,335 235,319 (236,024) 339,630 Liabilities Due to bondholders $ 340,335 252,317 (253,022) 339,630 87 CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at July 1. 1999 Additions Deletions June 30, 2000 ASSESSMENT DISTRICT NO. 97-1 Assets Cash and investments $ 101,502 71,229 (49,419) 123,312 Liabilities Due to bondholders $ 101,502 72,812 51,002) 123,312 ASSESSMENT DISTRICT NO. 2000-1 Assets Cash and investments $ - 845,653 562,726) 282,927 Liabilities Due to bondholders $ - 847,745 (564,818) 282,927 TOTALS -ALL AGENCY FUNDS Assets Cash and investments $ 2,214,268 2,364,049 (2,094,511) 2,483,806 Total assets $ 2,214,268 2,364,049 (2,094,511) 2,483,806 Liabilities Accounts payable $ 423 21,912 (21,641) 694 Deposits payable 642,064 416,120 (388,719) 669,465 Due to bondholders 1,571,781 2,074,581 (1,832,715) 1,813,647 Total liabilities $ 2,214,268 2,512,613 (2,243,075) 2,483,806 GENERAL FIXED ASSETS ACCOUNT GROUP 89 CITY OF LA QUINTA Comparative Schedule of General Fixed Assets - By Source June 30, 2000 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 90 2000 $ 11,830,444 11,918,237 201,070 1,468,175 161,052 25,578,978 1999 12,075,671 11,826,075 201,070 1,116,160 161,052 25,380,028 $ 15,590,699 15,146,522 9,988,279 10,233,506 $ 25,578,978 25,380,028 CITY OF LA QUINTA Schedule of General Fixed Assets - By Function and Activity June 30, 2000 91 Furniture Leasehold and Function and Activi Land Buildings hnprove:Hants Fixtures Vehicles Totals General government $ 11,830,444 11,918,237 - 1,675 - 23,750,356 Legislative - - - 20,484 - 20,484 City manager - - 189,739 - 189,739 Finance - - - 241,188 - 241,188 City clerk - - - 206,982 - 206,982 Community services - - 201,070 67,969 - 269,039 Building and safety - - - 276,539 161,052 437,591 Community development - - - 117,051 - 117,051 Public works - - - 346,548 - 346,548 Total $ 11,830,444 11,918,237 201,070 1,468,175 161,052 25,578,978 91 CITY OF LA QUINTA Schedule of Changes in General Fixed Assets - By Function and Activity Year ended June 30, 2000 92 Transfer to Balance at Proprietary Balance at July 1, 1999 Additions Deletions Funds June 30, 2000 General government $ 23,903,420 198,936 (352,000) - 23,750,356 Legislative 20,484 - - - 20,484 City manager 171,206 18,533 - - 189,739 Finance 119,250 121,938 - - 241,188 City clerk 180,540 26,442 - - 206,982 Community services 268,418 621 - - 269,039 Building and safety 370,170 67,421 - - 437,591 Community development 111,460 5,591 - - 117,051 Public works 235,080 149,745 - (38,277) 346,548 Totals $ 25,380,028 589,227 (352,000) (38,277 25,578,978 92 STATISTICAL SECTION 93 TABLE 1 CITY OF LA QUINTA General Fund Expenditures by Function Last Ten Fiscal Years Fiscal Year Ending General Public Public Community Planning & Capital June 30 Government Safety Works Service Development. Projects Total 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 2000 2,814,604 4,992,811 1,704,996 768,528 748,949 - 11,029,888 (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 Fiscal Year Ending June 30 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 CITY OF LA QUINTA General Fund Revenue by Source Last Ten Fiscal Years (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 95 TABLE 2 Total 6,211,650 5,512,102 6,203,486 8,687,708 8,481,939 8,966,850 9,790,719 11,808,235 15,870,489 17,667,475 Licenses Charges Litigation and Inter- for Settlement Taxes Permits Governmental Services Proceeds Interest Miscellaneous $3,288,565 785,381 790,880 602,600 (2) 642,813 101,411 3,135,044 576,293 930,503 488,015 (2) 261,380 120,867 3,581,830 622,107 1,157,587 384,000 (2) 238,321 219,641 4,212,604 777,241 1,600,032 469,695 (2) 585,264 1,042,872 4,946,304 902,914 747,784 551,727 477,872 718,310 137,028 5,393,456 998,030 815,980 610,873 12,386 905,420 230,705 5,942,698 793,689 1,072,803 976,897 40,593 941,327 22,712 6,764,355 1,144,562 1,110,553 1,228,269 281,382 1,164,145 114,969 8,101,191 1,951,981 1,466,788 1,965,219 740,985 1,569,796 74,529 8,888,825 2,493,360 2,388,749 1,922,097 - 1,868,073 106,371 (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 95 TABLE 2 Total 6,211,650 5,512,102 6,203,486 8,687,708 8,481,939 8,966,850 9,790,719 11,808,235 15,870,489 17,667,475 CITY OF LA QUINTA Property Tax Levies and Collections Last Ten 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. Source: City of La Quinta and County of Riverside 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% - 92.3% 1998 886,175 980,838 110.7% - 110.7% 1999 991,001 1,148,040 115.8% - 115.8% 2000 1,001,074 1,005,983 100.5% - 100.5% 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. Source: City of La Quinta and County of Riverside CITY OF LA QUINTA Schedule of Net Taxable Value Last Ten Fiscal Years Fiscal Year Assessed Less Less Ending Secured Unsecured Property Property Homeowner's June 30 Property Property Value Exemptions Exemptions 1991 $ 1,278,307,230 7,156,844 1,285,464,074 3,474,595 (1) 1992 1,594,767,374 6,396,816 1,601,164,190 3,605,829 (1) 1993 1,773,323,102 6,943,559 1,780,266,661 3,814,434 (1) 1994 1,872,768,156 8,119,527 1,880,887,683 3,946,378 18,901,202 1995 1,927,834,908 22,822,285 1,950,657,193 4,357,954 20,518,400 1996 2,043,276,054 23,801,872 2,067,077,926 6,936,774 22,399,068 1997 2,164,204,951 22,511,720 2,186,716,671 6,919,376 22,407,418 1998 2,305,593,987 18,844,880 2,324,438,867 9,676,787 24,877,018 1999 2,674,887,437 18,756,736 2,693,644,173 10,998,340 27,581,722 2000 2,665,520,656 18,712,736 2,684,233,392 11,655,584 28,259,200 (1) Homeowner's exemption not available Source: County of Riverside 97 TABLE 4 Net Taxable Value 1,281,989,479 1,597,558,361 1,776,452,227 1,858,040,103 1,925,780,839 2,037,742,084 2,157,389,877 2,289,885,062 2,655,064,111 2,644,318,608 TABLE 5 CITY OF LA QUINTA Property Tax Rates - Direct and Overlapping Governments Last Five Fiscal Years (per $100 of Assessed Value) Source: County of Riverside 1999/00 1998/99 1997/98 1996/97 1995/96 General 1.00000 1.00000 1.00000 1.00000 1.00000 Desert Sands Unified 0.09750 0.09750 0.09750 0.09750 0.09750 College of the Desert 0.00000 0.00000 0.00000 0.00000 0.00000 Coachella Valley Water District 0.02080 0.02080 0.02080 0.02080 0.02080 Total Tax Rate 1.11830 1.11830 1.11830 1.11830 1.11830 Source: County of Riverside CITY OF LA QUINTA Special Assessment Billings and Collections Last Ten Fiscal Years Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billings Collections (1) to Billings 1991 $ 355,924 335,177 94.1 1992 557,574 552,249 99.0 1993 559,029 548,291 98.0 1994 766,011 734,560 95.9 1995 836,502 737,700 88.2 1996 729,647 699,351 95.90 1997 791,012 757,256 95.7 1998 791,012 761,109 96.2 1999 790,532 770,164 97.4 2000 833,630 800,825 96.0 (1) Includes Prepayments and Foreclosures Source: Muni Financial Services CITY OF LA QUINTA Schedule of Direct and Overlapping Bonded Debt June 30, 2000 Percent Direct and Overlapping Bonded Debt Riverside County General Fund Obligations 0.999% Riverside County Board of Education Certificates of 0.999% Desert Community College District Certificates of P, 3.905 Desert Sands Unified School District Certificates of 1 8.963 Desert Sands Unified School District Lease Tax Obli 8.963 Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation 6.394 Coachella Valley County Water District, I.D. #55 68.760 Coachella Valley County Water District, I.D. #58 1.700 Coachella Valey Unified School District 5.085 City of La Quinta General Fund Obligations (Finan( 100.000 City of La Quinta 1915 Act Bonds 100.000 Total Direct and Overlapping Bonded Debt TABLE 7 June 30, 2000 Bonded Debt $998,403 168,403 43,892 2,328,224 5,545,807 889,725 7,821,450 134,045 998,403 8,010,000 4,170,000 $31,108,352 (1) Note: Excludes tax and revenue anticipation notes, revenue, mortgage revenue, tax allocation bonds and nonbonded capital lease obligations. Source: California Municipal Statistics, Inc. 100 CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 2000 Net Assessed Valuation Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin Notes: Source TABLE 8 $2,684,277,392 402,641,609 -0- $402,641,609 Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quinta has no general bonded indebtedness. City of La Quinta 101 CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Nine Fiscal Years Fiscal Year Debt Service Requirements Ending Revenue Available June 30 for Debt Service Principal Interest Total Coverage 1992 $ 182,784 - 182,784 182,784 1.00 1993 548,352 - 548,352 548,352 1.00 1994 548,352 - 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 2000 679,670 250,000 429,670 679,670 1.00 Note Source Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. City of La Quinta 102 Fiscal Year Ending June 30 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Source TABLE 10 CITY OF LA QUINTA Demographic Statistics Last Ten Fiscal Years (1) City of La Quinta (2) State of California Department of Finance 103 Total City Population Riverside Population Square Percent County Percent Miles (1) Population (2) Change Population (2) Of County 23.8 13,070 23.5% 1,225,800 1.1% 28.0 14,727 12.7% 1,281,000 1.1% 28.2 15,589 5.9% 1,323,500 1.2% 28.2 16,680 7.0% 1,357,400 1.2% 31.2 17,591 5.5% 1,393,500 1.3% 31.2 18,050 2.6% 1,381,879 1.3% 31.2 18,931 4.9% 1,379,956 1.4% 31.2 20,444 8.0% 1,441,237 1.4% 31.2 21,763 6.5% 1,473,307 2.2% 31.2 24,240 10.77% 1,522,900 1.6% (1) City of La Quinta (2) State of California Department of Finance 103 TABLE 11 CITY OF LA QUINTA Property Value and Construction Activity Last Ten 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 2000 2,684,277,392 40 13,071,684 1,590 292,524,629 (1) From Schedule of Net Taxable Value Source: City of La Quinta 104 CITY OF LA QUINTA Principal Taxpayers June 30, 2000 Taxpayer KSL Desert Resorts Inc. TD Desert Development Sunrise Desert Partners Mery Griffin La Quinta Golf Properties Corporation Wal Mart Stores Inc. Capital Pacific Holdings Washington Adams Partnership M & H Realty Partnership Lowe's Hardware Tradition Club Associates TABLE 12 Type of Activity Recreational, Residential Land Residential Land Condominiums Residential, vacant land Recreational, Commercial Land Commercial Residential, vacant land Commercial Shopping Centers Retailer Recreational, vacant land Source: HdL Coren & Cone, Riverside County Assessor 1999/00 Combined Tax Rolls 105 CITY OF LA QUINTA Major Employers June 30, 2000 Employer Employees La Quinta Hotel and Golf Resort 1,500 PGA West 1,100 Desert Sands Unified School District 525 Wal-Mart 280 Home Depot 185 Rancho La Quinta 150 Stater Brothers 150 Loew's Hardware 125 Vons 103 Ralphs 100 City of La Quinta 74 Source: City of La Quinta 106 Activity Hotel and Golf Resorts Golf Resort School District Retailer Retailer Golf and Tennis Resort Groceries Retailer Groceries Groceries Municipal Government TABLE 14 CITY OF LA QUINTA Schedule of Insurance in Force June 30, 2000 Com any Name Policy Number Coverage Limits Term Premium Hartford PEBAO7068 Employee Dishonesty, $1,000,000 12/03/99 - 00 $2,500 Forgery, Computer Fraud General Star IAG371825 All Risk Property Insurance 25,736,400 07/01/00-01 14,145 Idenmity Co. Including Auto Physical Damage (Excluding Quake & Flood) RLI Insurance IMP0033525 Earthquake & Flood 5,000,000 02/07/-01 20,200 Company Real & Personal Property Including Contigent Tax Interruption California Certificate #5 Comprehensive General $0 Deductible Retention 12/03/99 - 00 60,300 Joint Powers Liability $50 Million Insurace Authority California Certificate Worker's Compensation 5,000,000 12/03/99 - 00 37,637 Joint Powers #5009-056 Insurance Authority American National IMP9880468 Earthquake & Flood 2,500,000 02/07/00-01 4,750 Real & Personal Property Including Contigent Tax Interruption Chubbs Custom Special Events $1,000,000 N/A N/C Insurance Source: City of La Quinta 107 CITY OF LA QUINTA Miscellaneous Statistical Data June 30, 2000 Date of Incorporation ....... I ........ I ......... May 2, 1982 Type of City .......................... Charter City Form of Government ...................... Council / Manager City Employees ............................ 74 City Land Area (square miles) ........................... 31.2 Population ....................... I.... 24,240 Number of Parks ............................ 8 Total Acreage ............................ 39 Miles of Streets ..................... 1 ...... 170.0 Miles of Bike Paths ............................ 9.7 Number of Major Intersections .......................... 45 Number of Traffic Signals and Safety Lighting ............. 32 Number of Traffic Signs ..................... I ...... 2,605 Number of Street Lights ................. 8 Public Schools ............. I . I .. I . , . 4 Private Schools ............................ 1 Churches 3 Banks / Savings and Loan ............................ 2 Number of Single Family Units - Detached ................ 11,197 Number of Single Family Units - Attached ................. 2,310 Number of Multiple Family Units ....................... 697 Number of Mobile Homes ............................ 247 Source: City of La Quinta 108 TABLE 15