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1994-1995 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)City o La Quinta, California G� MA Comprehensive Annual Financial Report for the Year Ended June 30, 1995 CITY OF LA QUINTA La Quinta, California Comprehensive Annual Financial Report Year ended June 30, 1995 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, 1995 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION: Table of Contents i Letter of Transmittal vii List of Principal Officials xxiii Organization Chart xxv FINANCIAL SECTION: Independent Auditor's Report I General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups AA 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types BB 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types CC 6 Notes to Financial Statements 8 Supplemental Data: Special Revenue Funds: Combining Balance Sheet A-1 32 Combining Statement of Revenues, Expenditures and Changes in Fund Balances A-2 34 State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-3 36 Community Service Projects Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-4 37 -i- CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1995 TABLE OF CONTENTS (CONTINUED) Exhibit Page Federal Assistance Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-5 38 Lighting and Landscaping Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-6 39 Quimby Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Village Parking Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual South Coast Air Quality Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Low Income Housing Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Low Income Housing 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 Redevelopment Agency Project Area No. 1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-7 40 A-8 41 A-9 42 A-10 43 A-11 44 B-1 46 B-2 47 B-3 48 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1995 TABLE OF CONTENTS (CONTINUED) Redevelopment Agency Project Area No. 2 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Financing Authority 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 Assessment District 91-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Assessment District 92-1 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 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 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 Exhibit Page B-4 49 B-5 50 C-1 52 C-2 54 C-3 56 C-4 57 C-5 58 C-6 59 C-7 60 C-8 61 CITY OF LA QUINTA Comprehensive Annual Financial Report Year ended June 30, 1995 TABLE OF CONTENTS (CONTINUED) Agency Funds: Exhibit Page Combining Balance Sheet - All Agency Funds D-1 64 Statement of Changes in Assets and Liabilities - All Agency Funds D-2 65 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source E-1 70 Schedule of General fixed Assets - By Function and Activity E-2 71 Schedule of Changes in General Fixed Assets - by Function and Activity E-3 72 Table No. Page STATISTICAL SECTION: General Governmental Expenditures by Function 1 74 General Governmental Revenue by Source 2 75 Property Tax Levies and Collections 3 76 Schedule of Net Taxable Value 4 77 Property Tax Rates - Direct and Overlapping Governments 5 78 Special Assessment Billings and Collections 6 79 Schedule of Direct and Overlapping Bonded Debt 7 80 Computation of Legal Debt Margin 8 81 Revenue Bond Coverage 9 82 Demographic Statistics 10 83 Property Value and Construction Activity 11 84 Principal Taxpayers 12 85 Major Employers 13 86 Schedule of Insurance in Force 14 87 Miscellaneous Statistical Data 15 88 -iv- (This page intentionally left blank) WAR (This page intentionally left blank) -vi- August 18, 1995 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 - (619) 777-7000 FAX (619) 777-7101 Honorable Mayor, City Council, and City Manager City of La Quinta La Quinta, California FY 1994-95 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL We are pleased to present the 1995 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, 1995. 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. 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 vu MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 �( Honorable Mayor, City Council. and City Manager 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 City of La Quinta is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditor's reports on the internal control structure and compliance with applicable laws and regulations, are included in a separate report. The following governmental agencies that provide services to the citizens of the City of La Quinta have been excluded from this report because the City does not exercise oversight responsibilities over these agencies: State of California and its departments, County of Riverside and its departments, Coachella Valley Association of Governments, Riverside County Transportation Commission, Riverside County Waste Management District, Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School District, Desert Community College District, Mosquito Abatement District. and Coachella Valley Water District. Background The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City motto is "The Gem of the Desert". The City is governed by a five member City Council under the Council/Manager form of government. The Mayor is directly elected by the citizens. The City was incorporated in 1982 as a general law City. Significant demographic data is as follows: • Population as of December 1994 was 17,591 an increase of 188% from 1984; • Retail Sales over $78 million a 258% increase from 1984; • Taxable Sales over $110 million a 293% increase from 1984; • Assessed Valuation over 1.9 billion a 390% increase from 1984; and, • Hotel Room sales over 21 million a 311% increase from 1984 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 just completed a beautiful 10,000 sq ft Senior Center for City residents. The Desert Unified School District has recently opened the La Quinta High School. The City has been experiencing rapid growth in population making it one of the fastest growing Cities in California. With this growth comes a demand on local government to meet the needs of its citizens. The total number of full time authorized positions for 1994-95 is 62. In addition to the 17,591 permanent Vlll Honorable Mayor, City Council. and City Manager residents approximately 8,500 seasonal residents spend three to six months in the City. Services Provided by the City City services can be divided into those services provided directly by City staff and those services contracted out to other government agencies and organizations. Direct services provided by City staff in the following areas include: General Government - Legislative - City Manager - Economic Development Finance - Fiscal Services - Central Services - Management Information Building; and Safety - Administration - Code Enforcement - Animal Control - Building - Emergency Services - Fire - Civic Center Building Public Works - Administration - Engineering & Inspections - Maintenance & Operations Administrative Services - City Clerk - Senior Center Parks and Recreation - Recreation Community Development - Administration - Current Planning - Advance Planning - Redevelopment Contracted services provided to the City and its citizens include police and fire protection through the County of Riverside, library services through the County of Riverside, visitor & tourist information through Palm Springs Desert Resorts Convention Visitors Bureau, economic development through the La Quinta Chamber of Commerce, water service through the Coachella Valley Water District, electricity service through the Imperial Irrigation District, refuse collection through Waste Management Company, and cable service ,y Honorable Mayor, City Council, and City Manager through Continental Cable. Significant Events and Accomplishments During 1994-95 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 $77 million in building permits while commercial construction accounted for over $6 million. This was nearly double the previous year's $47 million. The One Eleven La Quinta shopping center is under construction anchored by Wal Mart, Albertson's Grocery and various retail outlets. This 60 acre 620,000 sq. ft retail center is located at Washington Street and Highway 111. The development of numerous residential communities has increased the assessed valuation in the City. As mentioned earlier, the City's assessed valuation has increased four fold from 1984 to over $1.95 billion. Another completed project during 1995 was the opening of the La Quinta Village Shopping Center anchored by a Ralph's Market. 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. The U.S. Census has established the median home price at $117,400 which is lower than Riverside, San Diego, Los Angeles Counties and the State of California. There were 531 housing units built during 1994 which brings to 8,917 the number of total units within the City. The 8,917 units consist of 8,189 single family residences, 481 multi family residences, and 247 mobile homes. Tourism La Quinta is home to several of the worlds highest rated golf courses. During FY 1994-95, major golf tournaments hosted in La Quinta included the prestigious Bob Hope Chrysler Classic, the Diners Club Tournament, and the Liberty Mutual Senior Legends of Golf. Honorable Mayor, City Council, and City Manager The nationally recognized La Quinta Arts Festival attracts many visitors from around the country each year to the City of La Quinta and the Coachella Valley. The La Quinta Hotel, the second largest destination resort in the Coachella Valley, recorded dramatic growth in hotel revenues during 1994. The City increased funding for the Palm Springs Desert Resort Convention Bureau for tourism promotion and provided funding for the Airline Services Council to bring a low cost carrier to the Coachella Valley. Capital Improvements/Studies The completion of over $12,600,000 in capital improvements including the Washington Street Bridge and Phase V street improvements. The development of a multi-year Capital Improvement Program and the completion of both the Highway 111 Commercial Corridor Assessment and Landscape & Lighting Assessment District Feasibility Reports. Community Facilities The dedication and opening of the La Quinta Senior Center with over 10,000 sq, ft of space. The City is developing the Fritz Burns Park while maintaining 19.5 acres of medians, 14.6 acres of parks and 104 miles of streets. The following is a partial listing of the accomplishments made by City staff to the citizens of La Quinta for 1994-95: Acquired new accounting and financial software; Administered Banking Request for Proposal; Refunding of Redevelopment Agency Bonds; Expansion of "Kidsline" program to neighboring Palm Desert and Indio; Established Community School concept with local school district, Received Urban Forestry Grant from the State of California, Administered low and moderate income sewer installations to 42 households, Acquired 36 acres for the development of the Seasons affordable housing project; First update of Subdivision ordinance; and, Completed Citywide computer upgrade project including Graphical Information System Future developments include completion of a championship golf course at PGA West designed by Tom \i Honorable Mayor, City Council, and City Manager Weiskopf, expansion at the La Quinta Hotel, continued commercial development along the Highway 1 11 corridor, and completion of residential projects in the northern part of the City. Financial Information Management of the City of La Quinta is responsible for establishing and maintaining an internal control structure designed to ensure that assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit - As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to periodic evaluation by management. As a part of the City's single audit, tests are made to determine the adequacy of the internal control structure, including that portion relating to Federal assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the government's single audit for the fiscal year ended June 30, 1995 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. Accounting Controls - The City of La Quinta's accounting system is designed upon the following principals: In the public sector, a city government maintains a variety of "funds" that provide the basis for separately recording the financial data related to a specific activity. A fund is an accounting entity with a complete set of self -balancing accounting records. Each fund has been established because of some restriction on the use of the resources received by that fund. In the private sector, a corporation may have many subsidiaries which make up the parent corporation. Likewise in the public sector, all of the funds make up the complete financial resources of the City of La Quinta. This report includes the transactions of all entities over which the City Council of the City of La Quinta has authority (as defined by the Government Accounting Standards Board). The City's accounting system operates on a modified accrual basis for all governmental and agency type funds. Government funds include the General, Special Revenue, Debt Service, and Capital Projects Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or accrued when they are both measurable and collectible within the accounting period or soon enough after the end of the period to pay liabilities of the period, and expenditures, other than interest or long term debt, are recorded when liabilities are incurred. X11 Honorable Mayor, City Council. and City Manager The City does not maintain proprietary fund types (Enterprise and Internal Service Funds). These types of funds use the accrual method of accounting. Revenues and expenses are recorded when earned or incurred. In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting system to ensure the safety of assets from misappropriation, unauthorized use or disposition, and to maintain the accuracy of financial record keeping. These internal controls must be established consistent with sound management practices based upon the cost/benefit of the controls imposed. The cost of a control should not be excessive to its derived benefit as viewed by City management. The internal controls in existence at the City of La Quinta are sufficient to ensure in all material respects both the safety of the City's assets and the accuracy of the financial record keeping system. Budgetary Controls The City Manager submits a preliminary budget to the City Council before each fiscal year. Public hearings are then held prior to July 1 to receive public comment. A budget is required to be adopted before the beginning of the fiscal year. Amendments to the budget or budget transfers between funds require Council approval. Budget transfers within funds require City Manager approval. The City also maintains an encumbrance system as one budget technique. All fiscal year end appropriations and encumbrances lapse at year end unless specifically approved by the Council for inclusion in the following years appropriations. Each Department receives a monthly budget -to- actual expenditure report. In addition, each department can access the financial information system data through the City-wide computer network. The City Council is also given an Executive level Summary of Revenues and Expenditures on a monthly basis. 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 of La Quinta and growth in the State per capita income allowed the Gann limit for 1994- 95 to increase to $19.1 million. Appropriations of "proceeds of taxes" was $ 6.4 million for a margin of $12.7 million. X111 Honorable Mayor, City Council, and City Manager Revenue and Expenses from All Fund Tykes The following schedules present a summary of the general fund, special revenue funds, debt service funds and capital project funds revenues and expenditures for 1994-95 and the amount and percentage of increases and decreases in relation to prior year revenues. Fund Type General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Total Fund Type General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Total Revenue from All Fund Ty=es 94-95 over % 1994-95 1993-94 (under)93-94 Change $8,004,067 7,751,063 253,004 3.3% 4,247,986 4,366,880 3,965,776 401,104 10.1% 4,687,518 12,252,411 11,482,408 770,003 6.7% (8,646,171) 2,138,748 4,937,586 (2,798,838) -56.7% $26,762,106 28,136,833 (1,374,727) -4.9% Expenditures All Fund Types 1994-95 1993-94 94-95 over % (under)_93-94 Change $6,305,104 5,513,428 791,676 6,182,251 4,247,986 1,934,265 12,373,399 12,576,142 (202,743) 4,687,518 15,856,887 (11,169,369) $29,548,272 38,194,443 (8,646,171) 14.4% 45.5% -1.6% 70.4% -22.6% Overall, the decrease in revenues and expenditures in 1994-95 is a result of reduced spending for capital improvements in the Capital Improvement Fund. My Honorable Mayor, City Council, and City Manager General Fund The City's General Fund is used to record all revenue and expenditures not specifically restricted by law or Council policy. Major sources of revenue include property tax, sales tax, transient occupancy tax, licenses and permits, and interest. Categories of expenditures include police services, public works, planning, parks and recreation, and administrative functions. The following two tables summarize General Fund revenues and expenditures for 1994-95 and 1993-94: General Fund Revenue 94-95 over % Source 1994-95 1993-94 (under) 93-94 Change Taxes $4,946,304 $4,212,604 $733,700 17.4% Licenses and permits 902,914 777,241 125,673 16.2% Charges for services 551,727 470,875 80,852 17.2% Intergovernmental 747,784 662,207 85,577 12.9% Interest 718,310 585,264 133,046 22.7% Miscellaneous 137,028 1,042,872 -905,844 -86.9% Total $8,004,067 $7,751,063 $253,004 3.3% The 1994-95 General Fund revenue increase of 3.3% reflects an across the board average increase. This increase is a result of a steady increase in new development, tourism, and population. Within the taxes line item, the City received a two year distribution of No -Low Property Tax which increased our property tax revenue 56.1% over the prior year. The City also received an increase in transient occupancy tax revenues of 13.8% over the prior year. The increase in building and permit fees reflect the continued increase in building activities that have occurred during 1994-95. The increase for charges for services is a result of the increased population base for the services offered. Interest income is due primarily to increased cash balances, increasing interest rates and a change of allocating pooled cash interest between the City and the Redevelopment Agency. The decrease in miscellaneous revenues is primarily the a result of a one time recovery from assessment districts in 1993-94 not received in 1994-95. Honorable Mayor, City Council, and City Manager Expenditure Type General Fund Expense 1994-95 1993-94 94-95 over % (under) 93-94 Change General Government $1,565,265 $1,769,973 $-204,708 -11.6% Public Safety 3,143,697 2,715,300 428,397 15.8% Community Services 199,115 119,265 79,850 67.0% Planning& Development 538,610 446,100 92,510 20.7% Public Works 576,304 462,790 113,514 24.5% Capital Projects 282,113 0 282,113 n/a Total $6,305,104 $5,513,428 $791,676 14.4% The 1994-95 General fund expenditures change of 14.4% reflects an increase in primarily two categories - Public Safety & Capital Projects. This increase is a result of the Council's desire to maintain a high level of public safety and equip staff with the latest possible computer equipment. General Government expenditures decreased 11.6% from 1993-94 due to a 62.8% decrease in legal costs and a 16.2% decrease in personnel costs. Public Safety expenditures increased 15.8% due to added patrol service levels and higher costs through the County Sheriffs contract. Community Services costs increased due to increased park & recreation programs being offered to the public. These costs are partially offset by charges for park & recreation programs. Planning & Development expenditures increased due to contractual services for housing & recycling element studies. Public Works expenditures increased due to additional personnel. Capital Project expenditures increased due to new computers, other computer processing equipment and the purchase of a dump truck. Special Revenue Funds The City's Special Revenue Funds, which account for the collection and use of special or restricted revenues, received $4.3 million in total revenue in 1994-95. This as an increase of $400,000 or 10.1% over the previous year. yvi Honorable Mayor, City Council, and City Manager The following two tables summarize Special Revenue Funds revenues and expenditures for 1994-95 and 1993-94: ial Revenue�Funds - Revenue Taxes increased 29.6% primarily from the La Quinta Redevelopment Agency Low & Moderate Income Housing funds. Intergovernmental revenue decreased due to reduced Community Development Block Grant funding for construction at the Senior Center. The increase in developer fees is from the collection of Quimby funds and is a result of increased construction activities. Interest income decreased due to lower cash balances. Special assessments changed due to an increase in the Lighting & Landscaping Assessment District assessments. Expenditure Type Special Revenue Funds - Expenditures 1994-95 94-95 over % 1993-94 (under)93-94 Change Planning& Development $4,405,909 $2,709,107 94-95 over % Source 1994-95 1993-94 (under)93-94 Change Taxes $2,813,394 $2,171,571 $641,823 29.6% Intergovernmental 421,507 824,127 -402,620 -48.9% Developer fees 81,909 76,485 5,424 7.1% Interest 215,250 270,872 -55,622 -20.5% Special assessments 823,950 622,186 201,764 32.4% Miscellaneous 10,870 535 10,335 1932% Total $4,366,880 $3,965,776 $401,104 10.1% Taxes increased 29.6% primarily from the La Quinta Redevelopment Agency Low & Moderate Income Housing funds. Intergovernmental revenue decreased due to reduced Community Development Block Grant funding for construction at the Senior Center. The increase in developer fees is from the collection of Quimby funds and is a result of increased construction activities. Interest income decreased due to lower cash balances. Special assessments changed due to an increase in the Lighting & Landscaping Assessment District assessments. Expenditure Type Special Revenue Funds - Expenditures 1994-95 94-95 over % 1993-94 (under)93-94 Change Planning& Development $4,405,909 $2,709,107 $1,696,802 Public Works 1,168,522 1,070,678 97,844 Capital Projects 607,820 446,486 161,334 Debt Service 0 21,715 -21,715 Total $6,182,251 $4,247,986 $1,934,265 yvu 62.6% 9.1% 36.1% -100% 45.5% Honorable Mayor, City Council, and City Manager Planning & Development expenditures increased due to increased activities in the Low & Moderate Income Housing Program. Activities in this program included sewer hook-up subsidies, rental assistance and home purchase assistance. The increase in Public Works expenditures is a result of increases in personnel costs associated with the Gas Tax and Lighting/Landscaping funds. Capital Projects increased due to land acquisition in the Low & Moderate Income Housing Fund. No debt service payments were made in 1994-95 as were made in 1993-94. 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 1994-95 and 1993-94: Debt Service Funds - Revenue Source 1994-95 1993-94 94-95 over % under) -93-94 Change Taxes $11,338,868 $11,061,864 $277,004 2.5% Intergovernmental 6,502 0 6,502 n/a Interest 207,563 189,555 18,008 9.5% Rental Income 699,478 226,994 472,484 208.1% Miscellaneous 0 3,995 -3,995 -100% Total $12,252,411 $11,482,408 $770.003 6.7% Tax revenue grew slightly and represents increasing property values in the City's two project areas. Interest income increased due to increased cash balances from the prior year. Rental income is based upon the annual debt service payment on the City of La Quinta Financing Authority Bonds. Debt Service Funds- Exnenditur Debt service decreased due to refinancing two bond issues during 1994-95. 94-95 over % Expenditure Type 1994-95 1993-94 (under) 93-94 Change Planning& Development $195,596 $195,854 $-258 -0.1% Debt Service 12,177,803 12,380,288 -202,485 -1.6% Total $12,373,399 $12,576,142 $-202,743 -1.6% Debt service decreased due to refinancing two bond issues during 1994-95. Honorable Mayor, City Council, and City Manager Capital Pro-ject 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 1994-95 and 1993-94: Capital Proiect Funds - Revenue Source 1994-95 1993-94 94-95 over % (under) 93-94 Change Intergovernmental $482,633 $2,975,750 $-2,493,117 -83.8% Developer fees 1,396,711 1,465,144 -68,433 -4.7% Interest 244,916 213,091 31,825 14.9% Special assessments 0 258,601 -258,601 -100% Miscellaneous 14,488 25,000 -10,512 -42.0% Total $2,138,748 $4,937,586 $-2,798,838 -56.7% Intergovernmental revenues decreased from the prior year due to the completion of the Washington Street Bridge and various other capital projects in 1993-94. The Washington Street Bridge project was funded by the Coachella Valley Association of Governments and the various other capital projects were funded with bond proceeds. Developer fees decreased due to a one-time payment of $42,000 from a developer for a project. Interest income increased due to larger cash balances which could be invested. Special assessments decreased to zero as construction was completed in 1993/94 on the City's 94-1 Assessment District. Miscellaneous revenue decreased due to a one time receipt received for the Avenue 50 and Park Traffic Signal project in 1993-94. Expenditure Type Capital Improvement Fund - Expenditures 1994-95 1993-94 94-95 over % under) 93-94 Change Planning& Development $1,435,830 $1,416,005 $19,825 1.4% Capital Projects 2,333,040 14,286,844 -11,953,804 -83.7% Debt Service 918,648 154,038 764,610 496.4% Total $4,687,518 $15,856,887 $-11,169,369 -70.4% uX Honorable Mayor, City Council, and City Manager Capital Project expenditures decreased due to scheduling less capital projects in 1994-95 than 1993-94. Debt service costs increased as a result of pre -paying a land acquisition loan. Risk Manaeement The City is self-insured for general liability insurance in the amount of $125,000 per occurrence and for worker's compensation in the amount of $250,000 per occurrence. Individual claims in excess of the self- insured amounts for general liability and worker's compensation (up to a maximum of $10,000,000 per incident) fall under the insurance policies purchased by the City. The City is a member of the Coachella Valley Joint Powers Insurance Authority (CVJPIA) which was formed to jointly fund insurance programs. The CVJPIA is composed of twenty four member agencies. The City's goal in joining the CVJPIA was to achieve long term premium stability. The CVJPIA provides general liability coverage in excess of $125,000 with a maximum of $10,000,000 per claim. Further information on the CVJPIA can be found in Note 17 to the Financial Statements. City Retirement Costs Note 16 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 overfunded benefit obligation applicable to the employees of the City at June 30, 1994 was $ 447,794, up $522,299 from an unfunded pension benefit obligation of $74,505 as of June 30, 1993. Employer contribution rates are reviewed and adjusted annually to achieve full funding for retirement benefits by the year 2000. The City Treasurer is charged with the responsibility of safeguarding the City's assets, receiving all payments due the City and investing all inactive funds. During the year, the City Treasurer earned about $1.39 million in interest on investments in all fund types from instruments yielding up to 5.972%, compared to earnings of $1.26 million during 1993-94. Funds are invested in various types of instruments as shown below. At June 30, 1995, the Treasurer had 100% of all available funds invested. The City's total portfolio at year end was $19,302,132. Below is a summary of cash and investments outstanding as of June 30, 1995: Form of Cash and Investments June 30, 1995 Petty cash and change fund $ 1,000 Deposits (234,202) Mutual funds 3,282,544 Local Agency Investment Fund 15,972,824 Deferred compensation—mutual funds 279.966 Total 119.302.132 Honorable Mayor, City Council, and City Manager As required by State law, the City Council has adopted a comprehensive investment policy specifying the type and term of City investments. The policy allows the City Treasurer flexibility without endangering the safety, liquidity or yield of the total portfolio. Certificate of Award for Outstanding Financial Reprting The California Society of Municipal Finance Officers (CSMFO) presents an annual Certificate of Award for Outstanding Financial Reporting. We believe that our current report conforms to the program requirements and are submitting this report to their organization for consideration. If received, the Certificate is valid for one year only. Acknowledgments This report could not have been accomplished without the dedicated services of the Finance Department staff. Special recognition is given to John Risley, Accounting Supervisor for his efforts in preparing the introductory and financial sections, Geniene Croft, Account Technician for her efforts in preparing the statistical section and Debbie De Renard, Secretary for her report preparation skills. We also appreciate the efforts of the Conrad & Associates, CPA's audit team for their professionalism in conducting the annual audit for the City of La Quinta. Respectfully submitted, 4Ajc'V-'�� M John M. Falconer Finance Director and Treasurer W (This page intentionally left blank) CITY OF LA QUINTA Directory of Officials June 30, 1995 CITY COUNCIL John J. Pena, Mayor Glenda Bangerter, Mayor Pro Tem James Cathcart, Council Member Ronald Perkins, Council Member Stanley Sniff, Council Member ADMINISTRATION Thomas P. Genovese, City Manager David Cosper, Public Works Director/City Engineer John M. Falconer, Finance Director Thomas Hartung, Building & Safety Director Jerry Herman, Community Development Director Saundra L. Juhola, City Clerk Marty Nicholson, Parks and Recreation Director Dawn Honeywell, City Attorney (This page intentionally left blank) X X C City of La Quinta Organizational Chart L est R*OW: Juy t • 1994 •� ornc OE P s Olfic Curdy Cadr]Ct Maniyemeuut Atr6tart Department Secretary csecretary B OF minislratire Servicrs I I Senior Center Deputy Cay Ckrk Senior Ceder Coordinator Deputy City<3e& 1 Senior Ceder Activak, Coordinator R—mi— Sada Center Assistant Parka and Recreation Direct Public Works Director Finance Director Building and 5 Director Community Development Director mme r ministration fbcalservkrs Par an Recrta Admirtlitralloa AtcounlErtR Supew- B 11 Assidant .and Deputrrcnt Sccrctary Recreation Supmeor Asseeard Enpmer Assehd to the City Manager Bu h 1 SSP Dwecta ReceptmmucJerk Typisu Wdne Coordinator DeWrtruuent Seoetary Account Technician nt S --Uy y Secrrbry It Secretary R Cawter Technician Sr. Recreation Leader Account Ckrk Recreants leader Code Enbrcernme Anlmai Control Currrnl Planaina Rtnenion Aide Engineering and tnapeciians Cenba! Serrker Code bdoK*nw0111cew Control 06icers Pdrscipal Phdw Park Aa<ndettt Code Ent tN Assaiaue Planner Associate Enpne' tr EnginerrMug Tednician Manabmrcnf cod E nkvmmll Inhumation Sertrkes OtficMBuildrue k°pec1ot CJvk Center ce Plannln6 MIS Tcchnkitn Skit operations me �n^e1 B-�:, r Planrrr Maintenance and Operatrotts MaWenance Manager Emerbency Services MaWeuuuxe Fouemarn turd Fjrc Redevelopment Maiterwsce Worken B M]irtenance Workers 1 (This page intentionally left blank) CONI AD CERTIFIED PUBLIC ACCOUNTANTS SSOCIATES , L.L.P. 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-2020 The Honorable Mayor and City Council City of La Quinta La Quinta, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of La Quinta, California as of and for the year ended June 30, 1995, as listed in the table of contents. These general purpose financial statements are the responsibility of the management of the City of La Quinta, California. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the aforementioned general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of La Quinta, California as of June 30, 1995, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards issued by the Comptroller General of the United States, we have also issued a report dated August 18, 1995 on our consideration of the City's internal control structure and a report dated August 18, 1995 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual funds financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of La Quinta, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The scope of our audit did not include the supplemental statistical schedules listed in the table of contents and we do not express an opinion on them. August 18, 1995 -1- MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CITY OF LA QUINTA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1995 Total assets Liabilities, ectuity and other credits Liabilities: Accounts payable Accrued expenses Compensated absences payable Deposits payable Claims and settlements payable (notes 17 and 22) Deferred compensation payable (note 15) Retentions payable Due to other funds (note 20) Due to bondholders Advances from other funds (note 11) Obligations under pass-through agreements (notes 8, 9 and 10) Tax allocation bonds (note 6) Revenue bonds (note 7) Notes payable Total liabilities Equity and other credits: Investment in general fixed assets Fund balances (notes 14 and 22): Reserved for: Bond reserve requirements Advances to other funds Prepaid expenses Deposits Notes receivable Land held for resale TDC owner participation agreement Unreserved: Designated for equipment replacement Designated for debt service Designated for emergency reserve Designated for cash flows Designated for operations/projects/transfers Total equity and other credits Total liabilities, equity and other credits $ 510,444 5,600 - 16,860 121,908 - 721,066 - 101,472 34,840 - 52,100 217,891 39,135 150,892 511,903 - 733.824 258.331 1.272.104 219.852 1,214,208 - 6,048,957 511,903 - - 49,277 - - 2,075 - - - 67,120 - - 361,340 - - - 1,820,357 250,000 - - - 1,926,052 - 2,234,200 - - - 1,300,000 - - - 444.480 3.008.026 - 3.881,463 10,328.989 3.948.389 3.140.260 5,701,820 $11,062.813 4,206,720 4.412 54 �ZL See accompanying notes to the financial statements. -2- Governmental Fund Types Special Debt Capital General Revenue Service Projects Assets and other debits Assets: Cash and investments (note 2) $ 4,471,191 2,902,738 3,882,593 3,701,440 Cash with fiscal agent (note 2) - 306,184 - 597 529,771 - 1,953,166 116,174 Accounts receivable 49,277 - Prepaid expenses - 67,120 _ _ Notes receivable Due from other funds (note 20) - 257,026 - 150,892 Due from other governments 185,129 105,996 _ Land held for resale Advances to other funds (note 11) - 6,048,957 361,340 511,903 _ - - Deposits 2,075 - _ 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 Liabilities, ectuity and other credits Liabilities: Accounts payable Accrued expenses Compensated absences payable Deposits payable Claims and settlements payable (notes 17 and 22) Deferred compensation payable (note 15) Retentions payable Due to other funds (note 20) Due to bondholders Advances from other funds (note 11) Obligations under pass-through agreements (notes 8, 9 and 10) Tax allocation bonds (note 6) Revenue bonds (note 7) Notes payable Total liabilities Equity and other credits: Investment in general fixed assets Fund balances (notes 14 and 22): Reserved for: Bond reserve requirements Advances to other funds Prepaid expenses Deposits Notes receivable Land held for resale TDC owner participation agreement Unreserved: Designated for equipment replacement Designated for debt service Designated for emergency reserve Designated for cash flows Designated for operations/projects/transfers Total equity and other credits Total liabilities, equity and other credits $ 510,444 5,600 - 16,860 121,908 - 721,066 - 101,472 34,840 - 52,100 217,891 39,135 150,892 511,903 - 733.824 258.331 1.272.104 219.852 1,214,208 - 6,048,957 511,903 - - 49,277 - - 2,075 - - - 67,120 - - 361,340 - - - 1,820,357 250,000 - - - 1,926,052 - 2,234,200 - - - 1,300,000 - - - 444.480 3.008.026 - 3.881,463 10,328.989 3.948.389 3.140.260 5,701,820 $11,062.813 4,206,720 4.412 54 �ZL See accompanying notes to the financial statements. -2- EXHIBIT AA Fiduciary Fund Types Account Groups Totals General General (memorandum Only) Agency Fixed Asset Long -Term Debt 1995 1994 1,861,233 - - 16,819,195 13,206,945 2,482,937 7,065,743 422,955 273,255 49,277 399,971 - 67,120 67,120 _ _ _ 407,918 5,906,475 _ _ _ 291,125 1,612,922 _ _ _ 361,340 361,340 _ _ - 6,560,860 4,321,796 _ _ _ 2,075 37,465 - 21,773,429 - 21,773,429 20,595,339 _ - 3,140,260 3,140,260 4,906,718 77,857.208 77,857,208 77,027,499 21.773.429 80.997.468 130 235.699 135,782.588 532,904 2,108,466 842,974 78,639 _ - 309,279 309,279 297,017 234,651 - - 423,063 452,712 279,966 - - 279,966 204,966 - 94,978 _ _ _ 407,918 5,906,475 1,346,616 - - 1,346,616 1,514,003 _ - 6,048,957 6,560,860 4,321,796 _ - 25,749,232 25,749,232 26,743,004 _ - 40,530,000 40,530,000 40,810,000 _ - 8,360,000 8,360,000 8,515,000 1,247.400 1,861,233 - 80,997.468 85,342.812 92.294.456 - 21,773,429 - 21,773,429 20,595,339 _ _ - 1,214,208 1,957,747 - _ _ 6,560,860 4,321,796 _ _ _ 49,277 399,971 _ - _ 2,075 37,465 - _ _ 67,120 67,120 - _ _ 361,340 361,340 _ _ _ 1,820,357 1,820,793 _ _ _ 250,000 82,674 _ _ - 1,926,052 2,549,000 _ _ _ 2,234,200 1,225,243 _ _ _ 1,300,000 - 7,333,969 10,069,644 21,773,429 - 44.892,887 43.488,132 1.861,233 21.773.429 80.997.468 130.235.699 135.782.58 -3- (This page intentionally left blank) -4- EXHIBIT BB CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended June 30, 1995 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 2,181,956 (2,556,240) (1,766,458) 2,807,023 666,281 (6,506,735) Fund balances at beginning of year, as restated (note 22) 8,147.033 6,504,629 4,906.718 2,894.797 22.453,177 29.399,528 Fund balances at end of year $10.328.989 3,948,382 3.140,2601 $Q 23.119.458 22.892,793 See accompanying notes to the financial statements. -5- Totals Special Debt Capital (Memorandum Only) General Revenue Service Projects 1995 1994 Revenues: Taxes $ 4,946,304 2,813,394 11,338,868 - 19,098,566 17,446,039 Licenses and permits 902,914 - - _ 902,914 551,727 777,241 470,875 Charges for services 551,727 - _ Fines and forfeitures Intergovernmental - 747,784 - 421,507 6_502 - 482,633 1,396,711 1,658,426 1,478,620 4,462,084 1,541,629 Developer fees - 718,310 81,909 215,250 207,563 244,916 1,386,039 1,258,782 Interest Special assessments - 823,950 - - 699,478 _ 823,950 699,478 880,787 226,994 Rental income Miscellaneous - 137,028 10,870 - 14,488 162,386 1,072,402 Total revenues 8,004,067 4,366,880 12,252,411 2,138,748 26,762,106 28,136,833 Expenditures: General government 1,565,265 - _ - - 1,565,265 3,143,697 1,769,973 2,715,300 Public safety3,143,697 199,115 - - 199,115 119,265 Community services Planning and development 538,610 4,405,909 195,596 1,435_830 6,575,945 1,744,826 4,767,066 1,533,468 Public works Capital outlay 576,304 282,113 1,168,522 607,820 - - 2,333,040 3,222,973 14,733,330 Debt service: Principal -- 435,000 810,491 1,245,491 850,000 Interest - 3,343,186 108,157 3,451,343 3,964,066 Payment of advances - - 894,295 - 894,295 973,935 Payments under pass-through - 6,954,152 - 6,954,152 6,217,002 obligations Mandated education contribution - - - 551.170 - 551,170 551,038 Total expenditures 6,305,104 6,182,251 12,373,399 4,687,518 29,548,272 38,194,443 Excess (deficiency) of revenues over (under) expenditures 1,698,963 (1,815.371) (120,988) (2,548,770) (2,786,166) (10,057,610) Other financing sources (uses): Operating transfers in 5,121 785,361 817,244 4,584,547 6,192,273 Operating transfers out - ( 1,526,230) (2,462,714) (2,203,329) (6,192,273) (4,386,029) Proceeds of bonds (net of _ _ 29,932,827 discount and issue costs) - - _ Payments to refunded bond escrow - _ _ _ (27,922,526) agent Litigation settlement proceeds 477,872 - - - 353,118 830,990 3,540,574 (2,000,000) Litigation settlement payments Proceeds of advances from City - - - - - 2,621 457 2,621,457 Total other financing 482,993 (740,869) (1,645,470) 5,355,793 3,452,447 3,550,875 sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 2,181,956 (2,556,240) (1,766,458) 2,807,023 666,281 (6,506,735) Fund balances at beginning of year, as restated (note 22) 8,147.033 6,504,629 4,906.718 2,894.797 22.453,177 29.399,528 Fund balances at end of year $10.328.989 3,948,382 3.140,2601 $Q 23.119.458 22.892,793 See accompanying notes to the financial statements. -5- CITY OF LA QUINTA Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types Year ended June 30, 1995 Revenues: Taxes Licenses and permits Charges for services Intergovernmental Developer fees Interest Special assessments Rental income Miscellaneous Total revenues Expenditures: General government Public safety Community services Planning and development Public works Capital outlay Debt service: Principal Interest Payment of advances Payments under pass-through obligations Mandated education contribution Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Litigation settlement proceeds Proceeds of advances from City General Fund 392,700 718,310 Variance - 74.130 137,028 Favorable Budget Actual (Unfavorable) $4,237,100 4,946,304 709,204 626,800 902,914 276,114 357,920 551,727 193,807 643,150 747,784 104,634 392,700 718,310 325,610 74.130 137,028 62,898 6,331,800 8,004,067 1,672,267 1,803,034 1,565,265 237,769 3,026,758 3,143,697 (116,939) 270,779 199,115 71,664 649,903 538,610 111,293 545,046 576,304 (31,258) 383,727 282,113 101,614 6,679,247 6,305,104 374,143 (347,447) 1,698.963 2,046,410 5,121 5,121 477,872 477,872 Total other financing sources (uses) - 482,993 482,993 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (347,447) 2,181,956 2,529,403 Fund balances at beginning of year, as restated (note 22) 8,147,033 8,147,033 - Fund balances at end of year 7.799.586 10.328.989 See accompanying notes to the financial statements. -6- EXHIBIT CC Special Revenue Funds Debt Service Funds Capital Projects Funds (3,669,876) (1,979,678) (1,526,230) Variance- (2,217,029) (2,462,714) Variance- (4,057,716) (2,203,329) Variance - _ Favorable _ _ Favorable 353,118 353,118 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) (1,979,678) (740,869) 1,238,809 (2,217,029) (1,645,470) 571,559 4,196,707 2,433,965 2,813,394 379,429 11,333,925 11,338,868 4,943 - - - 416,688 421,507 4,819 5,200 6,502 1,302 825,087 482,633 (342,454) 90,000 81,909 (8,091) - - - 735,000 1,396,711 661,711 172,451 215,250 42,799 174,500 207,563 33,063 31,600 244,916 213,316 826,545 823,950 (2,595) - - - - - - - - - 699,500 699,478 (22) - - - 536,116 10,870 (525,246) - - - 252,420 14,488 (237,932) 4,475,765 4,366,880 (108,885) 12,213,125 12,252,411 39,286 1,844,107 2,138,748 294,641 4,031,939 4,405,909 (373,970) 26,950 195,596 (168,646) 3,352,101 1,435,830 1,275,877 1,168,522 107,355 - - - - - 225,015 607,820 (382,805) - - - 7,091,935 2,333,040 440,000 435,000 - - - 3,323,825 3,343,186 - - 894,295 6,994,830 6,954,152 551,035 551,170 5,532,831 6,182,251 (649,420) 11,336,640 12,373,399 (1,057,066) (1,815,371) (758,305) 876,485 (120,988) 5,000 - 810,491 (19,361) - 108,157 (894,295) - - 40,678 - - (135) - - (1,036,759) 10,444,036 4,687,518 (997,473) (8,599,929) (2,548,770) 1,916,271 4,758,895 (810,491) (108,157) 5,756,518 6,051,159 - 785,361 785,361 - 817,244 817,244 8,254,423 4,584,547 (3,669,876) (1,979,678) (1,526,230) 453,448 (2,217,029) (2,462,714) (245,685) (4,057,716) (2,203,329) 1,854,387 _ _ _ _ _ 353,118 353,118 2,621,457 2,621,457 (1,979,678) (740,869) 1,238,809 (2,217,029) (1,645,470) 571,559 4,196,707 5,355,793 1,159,086 (3,036,744) (2,556,240) 480,504 (1,340,544) (1,766,458) (425,914) (4,403,222) 2,807,023 7,210,245 6.504,629 6,504,629 4,906,718 4,906,718 3.467,885 3.948,389 4 � 4 .sem 3.140.260 -7- 2.894,797 2,894,797 X5.914) (1.508.425) 5.701.820 7,210,245 CITY OF LA QUINTA Notes to the Financial Statements June 30, 1995 (1) Summary of Significant Accounting Policies (a) Reporting Entity The City of La Quinta was incorporated May 1, 1982 under the general laws of the State of California. The City operates under the Council — Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by general accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City: La Quinta Redevelopment Agency The La Quinta Redevelopment Agency has established two redevelopment project areas pursuant to the State of California Health & Safety Code Section 33000 entitled "Community Redevelopment Law". On November 29, 1983 and May 16, 1989, the City Council approved and adopted the Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and No. 2, respectively. These plans provide for the elimination of blight and deterioration which was found to exist in the project areas. Even though it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Upon completion, separate financial statements of the Agency can be obtained at City Hall. CITY OF LA QUINTA Notes to the Financial Statements (Continued) 1) Summary of Significant Accounting Policies, (Continued (a) Reporting Entity, (Continued) Citv of La Ouinta 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, through the issuance of debt, financing necessary for the construction of various public improvements. Although it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Authority. Upon completion, separate financial statements of the Authority can be obtained at City Hall. (b) Fund Accountin The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity with a self—balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accounting records of the City are organized on the basis of funds and account groups classified for reporting purposes as follows: GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include the general operating expenses which are not paid through other funds. 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 Fund The Debt Service Funds are used to account for resources set aside for repayment of general long term debt. Capital Project Funds Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. -9- CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (b) Fund Accounting (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 Group The General Fixed Assets Account Group is used to account for the costs of fixed assets acquired to perform general government functions. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Fixed asset records include estimates of original historical cost as determined by knowledgeable individuals in the City. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been provided on general fixed assets. General Long—Term Debt Account Group The General Long—Term Debt Account Group is used to account for all long—term debt of the City. (c) Measurement Focus and Basis of Accountin Governmental (general, special revenue, debt service and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. -10- 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. (d) Budgetary Data The City adopts an annual budget prepared on the modified accrual basis of accounting for all funds except for the South Coast Air Quality, Financing Authority, Assessment District 91-1, and Assessment District 92-1 Funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Reserves for encumbrances are not recorded by the City of La Quinta. -11- CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (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 balance. (f) Advances to Other Funds Long-term interfund advances are recorded as a receivable and in the long-term debt account group. (g) Investments Investments are valued at cost. An estimated loss is accrued for an impairment of investment market value when it is probable that the loss will become realized and the amount of loss can be reasonably estimated. In management's opinion, it is not probable that the temporary declines in the market value of the City's investments will become realized because it is management's intention to hold the investments to maturity or until the market value of the investments equals or exceeds their cost. Therefore, temporary market value declines are not reflected in the accompanying financial statements. Any losses resulting from a permanent decline in investment market values are recorded as a reduction of interest income. (h) Due from Other Governments The amounts recorded as a receivable due from other governments include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County and City Governments and unremitted to the City as of June 30, 1995. The County of Riverside assesses, bills, and collects property taxes for the City. (i) Land Held for Resale Land held for resale represents property acquired by the Agency for resale. The property is recorded at original cost. No write-down for a lower market value has been reflected in the accompanying financial statements. (j) 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 days per type of leave. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years service, the employee is entitled to receive 25% of the value of his unused sick leave. The percentage -12- CITY OF LA QUINTA Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) 0) Employee Leave Benefits, (Continued) 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. (k) Claims and Judgments ents The City records a liability for material litigation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year end and the probable amount of loss (net of any insurance coverage or available funds on deposit) can be reasonably estimated. (1) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. (m) Capital Projects Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. (n) Memorandum Only Totals Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. Interfund balances and transactions have not been eliminated and the columns do not present consolidated financial information. (2) Cash and Investments Cash and investments held by the City at June 30, 1995 consisted of the following: Book Balance Petty cash and change funds $ 1,000 Deposits (234,202) Investments 19,535,334 Total $19,302,132 -13- CITY OF LA QUINTA Notes to the Financial Statements (Continued) (2) Cash and Investments (Continued) Cash and investments are classified in the accompanying combined balance sheet as follows: Cash and investments $16,819,195 Cash with fiscal agent 2,482,937 Total $19.302.132 The City and its component units are generally authorized under state statutes and local resolutions to invest in the following types of investments: Investment Type Maximum % Savings/operating accounts 85% Certificates of deposit 60% U.S. government and agency securities 75% Government Pool 90% Money market and short intermediate term bond funds 60% Deferred compensation investments held in a fiduciary capacity for City employees include investments legally authorized for the City as well as investments in mutual funds. Under the California Government Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Deposits of cities and other state or local governments are classified in three categories to give an indication of the level of credit risk assumed by the City. 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. -14- CITY OF LA QUINTA Notes to Financial Statements (Continued) (2) Cash and Investments (Continued) Category 3 - includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits: Category Bank Book Form of Deposit 1 2 3 Balance Balance Demand deposits 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. Carrying Market Form of Investment Amount Value Mutual Funds $ 3,282,544 3,282,544 Local Agency Investment Fund 15,972,824 16,121,771 Deferred compensation - mutual funds 279.966 279.966 Total investments $19.535.334 19.684.281 The investments above are not classified by custodial risk because they do not represent a direct investment in securities. As of June 30, 1995, the management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has calculated the market value of LAIF to be $27,116,056,206. The City's proportionate share of that value is $16,121,771. Included in LAIF's investment portfolio are certain market risk sensitive investments including federal agency and corporate variable rate securities, federal agency asset and mortgage-backed pools, and collateralized mortgage obligations. Information related to LAIF's exposure to credit and legal risk has not been made available to the City. -15- CITY OF LA QUINTA Notes to Financial Statements (Continued) (3) Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes which are received from the County within sixty days after year end. Lien date March 1 Levy date June 30 Due dates November 1 and February 1 Collection dates December 10 and April 10 The La Quinta Redevelopment Agency's primary sources of revenue comes from property taxes. Property taxes allocated to the Agency are computed in the following manner: (a) The assessed valuation of all property within the project area is determined on the date of adoption of the Redevelopment Plan. (b) Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on the "frozen" assessed valuation of the property are allocated to the City and other districts. The Agency has no power to levy and collect taxes and any legislative property tax shift might reduce the amount of tax revenues that would otherwise be available to pay the principal of, and interest on, debt. Broadened property tax exemptions could have a similar effect. Conversely, any increase in the tax rate or assessed valuation, or any reduction or elimination of present exemptions would increase the amount of tax revenues that would be available to pay principal and interest on debt. (4) Fixed Assets A summary of changes in general fixed assets follows: Balance at Balance at June 30, 1994 Additions Retirements June 30, 1995 Land $ 8,041,393 - - 8,041,393 Equipment and furniture 552,963 143,097 - 696,060 Vehicles 329,101 49,682 - 378,783 Leasehold improvements 201,070 - - 201,070 Construction in progress 1,158,579 - (1,158,579) - Buildings 10,312,233 2,143,890 - 12,456,123 Total $20.595.339 2,336,669 (1,158,579) 21,773,429 -16- CITY OF LA QUINTA Notes to Financial Statements (Continued) (5) General Lone -Term Debt Changes in general long-term debt for the year ended June 30, 1995 were as follows: City: Compensated absences payable RDA Project Area No. 1: Tax allocation bonds Revenue bonds Pass through agreements payable: Due to County of Riverside Desert Sands Unified School District Coachella Valley Unified School District Notes payable - individuals Advances from other funds* RDA Project Area No. 2: Tax allocation bonds Due to County of Riverside Notes payable - individuals Advances from other funds* Total Balance at Balance at July 1. 1994 Additions Deletions June 30. 1995 $ 297,017 12,262 - 309,279 35,000,000 - 200,000 34,800,000 8,515,000 - 155,000 8,360,000 10,517,138 - - 10,517,138 2,566,220 - 661,560 1,904,660 12,896,359 - 624,474 12,271,885 531,531 - 531,531 - - 2,621,457 281,014 2,340,443 5,810,000 - 80,000 5,730,000 763,287 292,262 - 1,055,549 715,869 - 715,869 - 4,321,796 - 613.282 3.708.514 * Advances from other funds are monies owed by the La Quinta Redevelopment Agency to the City of La Quinta, which also include interest accrued on the advances. (6) Tax Allocation Bonds As of June 30, 1995, the following issuances of Tax Allocation Bonds were outstanding: Series 1991 La Quinta Redevelopment Project Tax Allocation Bonds, Series 1991, were issued by the Agency, October 1, 1991, in the amount of $8,700,000 for Project Area No. I. Interest is payable semi-annually, on March 1, and September 1 of each year commencing March 1, 1992. Interest rates are 6.375% per annum. Term Bonds maturing on September 1, 2014 are subject to mandatory sinking fund redemption, in whole or in part, on September 1, 2010 and on each September 1, thereafter, through September 1, 2014, at a prepayment price equal to 100% of the principal amount plus accrued interest. -17- CITY OF LA QUINTA Notes to Financial Statements (Continued) (6) Tax Allocation Bonds (Continued) Series 1991 (Continued) In the current year, a surety agreement was purchased to satisfy the bond reserve requirement. The amount of principal outstanding on the 1991 Tax Allocation Bonds payable at June 30, 1995 was $8,135,000. Series 1992 La Quinta Redevelopment Project Tax Allocation Bonds, Series 1992, were issued by the Agency, December 1, 1992, in the amount of $5,845,000 for Project Area No. 2. Interest is payable semi-annually on June 1 and December 1 of each year, commencing June 1, 1993. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. Interest payments range from 5% to 6.9% per annum. The bonds maturing on or after December 1, 1996 are subject to mandatory redemption in part without premium on June 1, 1996. Under the terms of the bond, the maximum annual debt service amount of $509,490 excluding the principal amount of the proceeds of the bonds held in the escrow fund, is to be set aside in reserve funds unless the Agency elects to maintain the reserve requirement by obtaining a letter of credit for the account. As of June 30, 1995, the amounts deposited in the reserve and escrow funds were $524,602 and $167,660, respectively. The principal balance of outstanding bonds at June 30, 1995 was $5,730,000. Series 1994 Tax allocation refunding bonds, Series 1994, in the amount of $26,665,000 were issued by the Agency 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 ranges from 3.80% to 8% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest on and principal of the bonds are payable solely from pledged tax increment revenues. The bonds are not subject to redemption prior to maturity. A portion of the proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement. The principal balance of outstanding bonds at June 30, 1995 is $26,665,000. A portion of the bond proceeds, in the amount of $27,922,526, were 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, 1995, $6,895,000 and $17,530,000 of the 1989 and 1990 defeased bonds are outstanding, respectively. -18- CITY OF LA QUINTA Notes to Financial Statements (Continued) (7) 1991 Local Agency Revenue Bonds, Series 1991 La Quinta Financing Authority Local Agency Revenue Bonds, Series 1991, were issued on December 1, 1991 by the Financing Authority in the amount of $8,515,000 to finance construction of the new Civic Center. Interest is payable semi-annually on October 1 and April 1 of each year commencing April 1, 1992. Interest payments range from 5.25% to 6.2% per annum. The bonds maturing on or before October 1, 2000 are not subject to optional redemption prior to maturity; however, bonds maturing on or after October 1, 2001 are subject to optional redemption, as a whole or in part, on any interest payment date on or after October 1, 2000, at a redemption price equal to the principal amount, plus accrued interest, plus a premium of .5% to 2%. Term bonds maturing on October 1, are subject to mandatory sinking fund redemption in part or in whole, on October 1, 2004 and on each October 1, thereafter, through October 1, 2018, at a prepayment equal to 100% of the principal amount plus accrued interest. Under the term of the issue, the amount $704,718, is to be set aside in a reserve. A total of $714,495 was set aside as of June 30, 1995. The principal balance of outstanding bonds at June 30, 1995 was $8,360,000. (8) Due to County of Riverside Project Area No. 1 Based on an agreement amended December 21, 1993 between the Agency, the City of La Quinta, and the County of Riverside (County), the Agency will pay to the County $10,517,138 from tax increment revenue relating to Project Area No. 1. This agreement is in consideration of the tax revenues lost by the County as a result of the formation of Project Area No. 1. The tax increment is to be paid to the County over a payment schedule through June 30, 2006 in annual amounts ranging from $386,764 to $2,190,473. Unpaid balances accrue interest at 5.5% per annum. The balance at June 30, 1995 was $10,517,138. Project Area No. 2 Based on an agreement dated July 5, 1989 between the Agency and the County, until the tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to the County 50% of the County portion of tax increment. At the County's option, the County's pass-through portion can be retained by the Agency to finance new County facilities or land costs that benefit the County and serve the La Quinta population. Per the agreement, the Agency must repay all amounts withheld from the County. The Agency is required to begin repayment in the year in which tax increment reaches $5,000,000 in ten equal annual installments. Interest does not accrue on this obligation. The balance at June 30, 1995 was $1,055,549. -19- CITY OF LA QUINTA Notes to Financial Statements (Continued) (9) Notes Payable to Desert Sands Unified School District Based on an agreement dated June 21, 1988 between the Agency, the City of La Quinta and the Desert Sands Unified School District (District), the Agency identified all tax increment revenue associated with the District for Project Area No. 1. The tax increment is paid to the District over a payment schedule through July 1, 1998 in amounts ranging from $21,505 to $663,825 for a total amount of $4,132,020. Alternatively, such tax increment revenues plus interest accrued required by this agreement may be retained by the Agency to pay on behalf of the District principal and interest on loans, construction projects or money advanced to finance a sports complex and related amenities as specified by the District. Tax increment payments outstanding at June 30, 1995 totaled $1,904,660. (10) 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 futherance of the Redevelopment Plan for Project Area No. 1. This tax increment is paid to the District over a payment schedule through August 1, 2012, in amounts ranging from $474,517 to $834,076, for a total amount of $15,284,042. Tax increment payments outstanding at June 30, 1995 totaled $12,271,885. The District agrees to use such funds to provide classroom and other construction costs, site acquisition, school busses or expansion or rehabilitation of current facilities. (11) Advances from the City of La Quinta The following represents a summary of the various transactions between the City of La Quinta and the Agency, accounted for as advances from the City: Balances at Balances at July 1, 1994 Proceeds Repayments June 30, 1995 Agency expenditures incurred by the City: Project Area No. 1 $ - Project Area No. 2 4,321,796 Total $4,321,796 2,621,457 281,014 2,340,443 613,282 3,708,514 2.621.457 894,296 6.048.957 There is no stipulated repayment date established for the City advances. Interest is paid at 10% per year. -20- CITY OF LA QUINTA Notes to Financial Statements (Continued) (12) 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, 1995 are as follows (advances payable to the City and the passthrough obligation owed by Project Area No. 2 to the County have been excluded since minimum annual debt service payments have not been established): Principal and interest 14,378,249 46,541,988 11,623,106 16,575,304 1,904,660 12,271,885 15,076,646 118,371,838 Less: Interest 6,243,249 19,876,988 5,893,106 8,215,304 - - 4,559,508 44,788,155 Total principal $ 8,135.000 26.665,000 5.730.000 8.3 000 1,904.660 12.271.885 10.517.138 73.583.683 -21- Pass-through Agreements Redevelopment Agency RDA Financing Project Area No. 1 Proiect Area No. 1 PA #2 Authority Desert Coachella Tax Tax Tax Revenue Sands Valley Year Allocation Allocation Allocation Bonds Unified Unified County Ending Series Series Series Series School School of June 30 1991 1994 1992 1991 District District Riverside Total 1995-96 $ 722,675 2,306,582 493,857 696,403 628,000 474,517 386,764 5,708,798 1996-97 723,810 2,629,851 503,607 697,570 707,650 526,560 386,764 6,175,812 1997-98 723,988 2,632,040 502,127 697,987 569,010 580,683 773,528 6,479,363 1998-99 723,210 2,625,330 510,065 697,623 - 621,976 773,528 5,951,732 1999-00 721,475 2,624,696 501,805 696,407 - 649,927 773,528 5,967,838 2000-01 723,625 2,624,885 508,265 694,413 - 670,817 1,803,705 7,025,710 2001-02 724,500 2,620,315 503,500 696,467 - 684,233 1,803,705 7,032,720 2002-03 719,259 2,620,855 508,100 697,398 - 697,918 1,803,705 7,047,235 2003-04 722,744 2,599,465 501,550 692,327 - 711,877 2,190,473 7,418,436 2004-05 719,794 2,612,140 509,490 690,766 - 726,114 2,190,473 7,448,777 2005-06 720,409 2,597,700 505,890 692,479 - 740,636 2,190,473 7,447,587 2006-07 719,431 2,593,456 506,400 692,861 - 755,449 - 5,267,597 2007-08 716,860 2,590,816 505,650 691,914 - 770,558 - 5,275,798 2008-09 717,535 2,584,232 503,850 689,636 - 785,968 - 5,281,221 2009-10 716,297 2,578,160 506,000 690,863 - 801,688 - 5,293,008 2010-11 713,080 2,571,868 506,750 690,426 - 817,722 - 5,299,846 2011-12 712,720 2,569,442 506,100 688,328 - 834,076 - 5,310,666 2012-13 714,959 2,560,155 509,050 684,566 - 421,166 - 4,889,896 2013-14 709,799 - 505,250 683,976 - - - 1,899,025 2014-15 712,079 - 505,050 686,225 - - - 1,903,354 2015-16 - - 503,100 681,313 - - - 1,184,413 2016-17 - - 509,400 684,072 - - - 1,193,472 2017-18 - - 508,250 679,339 - - - 1,187,589 2018-19 - 681.945 - - - 681,945 Principal and interest 14,378,249 46,541,988 11,623,106 16,575,304 1,904,660 12,271,885 15,076,646 118,371,838 Less: Interest 6,243,249 19,876,988 5,893,106 8,215,304 - - 4,559,508 44,788,155 Total principal $ 8,135.000 26.665,000 5.730.000 8.3 000 1,904.660 12.271.885 10.517.138 73.583.683 -21- CITY OF LA QUINTA Notes to Financial Statements (Continued) (13) Debt Without Governmental Commitment The City of La Quinta has entered into the sale of Improvement Bonds issued pursuant to the California State Improvement Act of 1915. The Bonds are payable from the annual installments collected on the regular property tax bills sent to owners of property having unpaid assessments levied against land benefited by the projects. The Bonds are not 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 in no way liable for repayment of the debt, but is only acting as agent for the property owners in collecting the assessments, forwarding the collections to bondholders, and does not constitute an obligation of the City; they are not reflected 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, 1995: Proceeds Maturity Date Interest Rate Amount outstanding at June 30, 1995 Assessment Assessment Assessment Assessment Assessment District No. 88-1 District No. 89-2 District No. 90-1 District No. 91-1 District No. 92-1 $855,984 1,153,974 1,227,155 2,240,866 1,880,891 September 2, 2004 September 2, 2004 September 2, 2005 September 2, 2006 September 2,2008 6.70%-7.25% 6.45%-6.75% 6.5-7.0% 6.70%-6.80% 5.0%-5.40% 660,000 835,000 955,000 1,890,000 1,730,000 (14) Reserves and Designation 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, 1995 consisted of the following reserves and designations: Total General Special Debt Capital (Memorandum Fund Revenue Service Proiects Only) Reserved for: Bond reserve requirement Advances to other funds Prepaid expenses Deposits Notes receivable Land held for resale TDC owner participation agreement Subtotal Unreserved: Designated for: Equipment replacement Debt service Emergency reserve Cash flows Operations/projects/transfers Subtotal Total fund balances $ - - 1,214,208 - 1,214,208 6,048,957 511,903 - - 6,560,860 49,277 - - - 49,277 2,075 - - - 2,075 - 67,120 - - 67,120 - 361,340 - - 361,340 1,820,357 1,820,357 6,100.309 940,363 1,214,208 1,820.357 10,075,237 250,000 - - - 250,000 - - 1,926,052 - 1,926,052 2,234,200 - - - 2,234,200 1,300,000 - - - 1,300,000 444.480 3,008,026 _ 3,881,463 7,333.969 4,228.680 3,008,026 1,926,052 3,881,463 13,044,221 0.328,982 5.701.$4 22 .119 458 -22- CITY OF LA QUINTA Notes to Financial Statements (Continued) (15) Deferred Compensation The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. As of June 30, 1995, the deferred compensation liability included in an Agency Fund was $279,966 carried at market value. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights, are solely the property and rights of the City, subject only to the claims of the City's general creditors. Because the City handles these funds in a fiduciary capacity, the Deferred Compensation Fund is reported as an Agency Fund in the accompanying financial statements. (16) City E pIgyees Retirement Plan (Defined Benefit Pension Plan) Plan Description The City of La Quinta contributed to the California Public Employees Retirement System (PERS), an agent multiple -employer defined pension plan that acts as a common investment and administrative agent for participating public entities within the State of California. The City's payroll for employees covered by PERS for the year ended June 30, 1995 was $2,149,788. The total payroll for the year was $2,312,498. All full-time City employees are eligible to participate in PERS. Part-time hourly employees do not participate in PERS. Benefits vest after five years of service. City employees who retire at or after age fifty, with five years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to the average monthly pay rate for the last twelve consecutive months. PERS also provides death and survivor's benefits. These benefit provisions and all other requirements are established by State statute and City ordinance. Employee and Employer Contribution Obligations Contributions required of City employees are paid by the City on behalf of the employees. The rates are set by statute and therefore remain unchanged from year to year. The present rates are: Member Rates as a Category Percentage of Wages Local miscellaneous members 7% The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial bases recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. -23- CITY OF LA QUINTA Notes to Financial Statements (Continued) (16) City Employees Retirement Plan (Defined Benefit Pension Plan, (Continued) Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of PERS on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to PERS. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Neither an actuarial valuation nor an annual update as of June 30, 1995 is available at this time. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8.5 percent a year compounded annually, (b) projected salary increases of 4.5 percent a year compounded annually, attributable to inflation, (c) no additional projected salary increases attributable to seniority/merit, and (d) no post retirement benefit increases. The total overfunded pension obligation applicable to the City employees was $447,794 at June 30, 1994, as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 331,409 Current employees: Accumulated employee contribution including allocated investment earnings 870,361 Employer -financed vested 505,077 Employer -financed non -vested 149,385 Total pension benefit obligation $1,856,232 Net assets available for benefits at cost (Market value is $2,297,114) 2,304,026 Unfunded (overfunded) pension benefit obligation $ (447.794) Changes in the pension benefit obligation from last year resulted from the following: Changes in benefit provisions - Changes in actuarial assumptions (157,352) Total (157.352) -24- CITY OF LA QUINTA Notes to Financial Statements (Continued) (16) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued) Actuarially Determined Contribution Requirements and Contribution Made PERS used the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost method in which the employer's total normal cost is expressed as a level percent of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the year 2000 for prior service benefits and current service benefits. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. The contribution to PERS for the year ended June 30, 1995 of $379,272 was made in accordance with actuarially determined contribution rates provided to the City before the beginning of the fiscal year and based upon an actuarial valuation performed as of June 30, 1993. The contribution consisted of the following: Normal cost Amortization of unfunded (overfunded) actuarial accrued liability Total contribution Contribution: Employer Employee Total contribution -25- Percent of Covered Amount Payroll $358,570 15.46% 20.702 .89% x.272 16.35% 213,671 9.21% 165,601 7.14% 2Z 16.35% CITY OF LA QUINTA Notes to Financial Statements (Continued) (16) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued) Trend Information For the three years ended June 30, 1993, 1994 and 1995, the total contribution to PERS was 13.47%, 15.42%, and 16.35% respectively, of the annual covered payroll. The total contribution paid by the City included the employer contributions as well as the member contribution for which the City is contractually obligated to pay on behalf of its employees. The total contributions paid by the City was based upon actuarially determined requirements. Since the required ten—year information for the City of La Quinta alone is not displayed in the California PERS annual report, this information must be disclosed in the financial statements of the City. This ten—year historical trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. However, the year ended June 30, 1987 is the first year that this actuarial information was made available by PERS. Moreover, such information for the year ended June 30, 1995 is not yet available. Until ten years of data are available, as many years as are available will be presented. Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation, thereby enhancing comparability for trend analysis purposes. Available trend information (in hundreds) is summarized as follows: -26- (6) (4) Unfunded Pension Actuarial (1) (2) (3) Unfunded (5) Benefit Obligation Valuation Net Assets Pension Percentage Pension Benefit Annual as a Percentage as of Available Benefit Funded Obligation Covered of Covered Payroll June 30 for Benefits Obligation X1)/(2) (2) - (1) Payroll (4)/(5) 1987 $ 2,664.0 $ 1,886.9 140.1% $ -757.2 $ 7,172.1 -10.6% 1988 3,745.5 2,614.0 143.3 -1,131.5 7,862.4 -14.4 1989 5,467.8 4,266.4 128.2 -1,201.6 12,012.6 -10.0 1990 7,770.3 6,508.0 119.4 -1,262.3 14,873.3 -8.5 1991 10,279.3 8,550.1 120.2 -1,729.4 19,272.4 -9.0 1992 13,911.9 14,388.6 96.7 476.6 21,837.2 2.2 1993 16,239.3 16,984.4 95.6 745.0 22,591.4 3.3 1994 23,040.2 18,562.3 124.1 -4,478.0 25,584.1 17.5 -26- CITY OF LA QUINTA Notes to Financial Statements (Continued) (17) Claims Payable/Self Insurance The Coachella Valley Joint Powers Insurance Authority (CVJPIA) was formed under a joint exercise of powers agreement between local governments and special districts under the sponsorship of the Coachella Valley Association of Governments for the purpose of jointly funding insurance programs. The CVJPIA is composed of twenty-five cities and one transit agency with equal governing powers and no management authority. The City of La Quinta joined the CVJPIA in order to achieve long term premium stability. Each member city must remain in the pool for three years and may be assessed up to three times their annual premium if the need arises. The likelihood of the need for excess premiums is remote given the claims history of the cities involved and the length of time necessary to settle large claims. Generally, individual claims in excess of the self-insured amount for workers' compensation and general liability (up to a maximum of $5,000,000 per incident) fall under the insurance policies purchased by the City. The CVJPIA provides for liability insurance coverage in excess of $125,000 with a maximum of $10,000,000 per claim. For the past three years, the City's year end deposit with CVJPIA has exceeded any liability for claims payable and therefore no liability for claims payable has been recorded in the general long-term debt account group. In addition, for the past three years, claim payments have not exceeded the amount of applicable insurance coverage. (18) Accumulated Fund Deficit The Capital Project Capital Improvement Fund reported a deficit fund balance of $8,328 at June 30, 1995. The Capital Project Assessment District 91-1 Fund reported a deficit fund balance of $154 at June 30, 1995. (19) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 1995 exceeded the appropriations of the following funds: Budget Actual Variance Special revenue funds: Low Income Housing Project Area No. 1 $3,991,220 4,785,172 (793,952) Debt service funds: Redevelopment Agency PA #1 8,710,840 9,106,853 (396,013) Redevelopment Agency PA #2 1,921,100 2,562,566 (641,466) Capital projects funds: Assessment District 91-1 - 3,246 (3,246) Redevelopment Agency PA #1 814,713 1,260,411 (445,698) Annual budgets have not been adopted for certain capital projects funds. -27- CITY OF LA QUINTA Notes to Financial Statements (Continued) (20) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 1995 are as follows: Special Revenue Funds: Low Income Housing -Project Area #1 Low Income Housing -Project Area #2 Debt Service Funds: Redevelopment Agency -Project Area #2 Capital Project Funds: Redevelopment Agency -Project Area #1 Redevelopment Agency -Project Area #2 Assessment District 91-1 Assessment District 92-1 Capital improvement (21) Commitments Under Development Agreements Washington/Adams Current Current Interfund Interfund Receivables Payables $ - 217,891 257,026 - 39,135 124,190 - - 124,190 - 154 26,702 - 26.548 The Agency has entered into an Owner Participation Agreement (OPA) with Washington/Adams, a California limited partnership. In this Agreement, Washington/Adams is responsible for the development of a retail center located at the intersection of Washington Avenue and Highway 111. The Agency and Washington/Adams are to share in specific infrastructure improvements, with the Agency being responsible for a maximum of $3,156,000. In addition, the Agency agrees to reimburse Washington/Adams a maximum of $575,460 for engineering design, permit fees, plan checks and inspections, and general contractor fees. As of June 30, 1995, $1,820,357 remains to be expended under this agreement. E.G. Williams On July 5, 1994, the Agency entered into a disposition and development agreement with E.G. Williams Development Corporation. In this agreement, E.G. Williams is responsible for the development of 60 detached single-family homes, 90 rental units designed for occupancy by senior citizens, one manager unit, and streets, gutters, drainage and other off-site facilities. In return, the Agency will convey title to the property for an agreed upon price. -28- CITY OF LA QUINTA Notes to Financial Statements (Continued) (22) Prior Period Adjustment The accompanying financial statements reflect certain adjustments to the opening fund balance of the Redevelopment Agency Project Area No. 2 capital projects fund. The effect of this change on the beginning fund balances of the capital projects fund type is as follows: Capital Projects Fund balances at beginning of year, as previously reported $3,334,413 Adjustment of intergovernmental receivable (439,616) Fund balances at beginning of year, as restated $2,894,792 (23) Contin eg ncies Various claims and suits have been filed against the City in the normal course of operations. Although the outcome of these lawsuits is not presently determinable, in the opinion of management, the resolution of these matters will not have a material adverse effect on the financial position of the City. Litigation settlement payments include the payments made to Iowa Trust in settlement of a claim by Iowa Trust with regard to funds previously invested by the City with an investment management company. (24) Subsequent Events On August 1, 1995, the City of La Quinta issued $22,455,000 of housing tax allocation bonds dated July 1, 1995 to increase, improve, and preserve the supply of low and moderate income housing in the City. Interest is payable semi—annually on September 1 and March 1 of each year commencing September 1, 1997. Interest payments range from 4% to 5.6%. -29- (This page intentionally left blank) -30- 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. Funds included are: The City of La Quinta has nine Special Revenue Funds: Gasoline Tax Fund - To account for gasoline allocations by the State of California. These revenues are restricted by the State to expenditures for street related purposes only. Community Service Projects Fund - To account for the accumulation of resources for parks and other community services projects. Capital projects to be funded from this source will be budgeted and expended in a separate capital project fund. Federal Assistance Fund - To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. Lighting and Landscape Special Assessment District 89-1 - To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. Quimby Fund - To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. Village Parking Fund - To account for the accumulation of resources provided through developer fees to facilitate parking and traffic flow in that area of the City known as "The Village". Capital projects funded from this source will be budgeted in a separate capital projects fund. South Coast Air Quality - 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. Redevelopment Agency Low and Moderate Income Housing P.A. No. 1 and No. 2 - To account for the required 20% set aside of property tax increments and is legally restricted for increasing or improving housing for low and moderate income households. -31- CITY OF LA QUINTA Special Revenue Funds Combining Balance Sheet June 30, 1995 Assets Cash and investments Accounts receivable Notes receivable Due from other funds Due from other governments Land held for resale Advances to other funds Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued expenses Deposits payable Due to other funds Total liabilities Fund balances: Reserved for: Advances to other funds Notes receivable Land held for resale Unreserved: Designated for operations/ projects Total fund balances Total liabilities and fund balances Community Lighting State Service Federal and Gas Tax Projects Assistance Landscape $ - 842,462 4,618 80,135 25,491 - 55,443 25,062 - 34,840 34,840 25.491 842,462 60,061 70,357 25,491 842.462 60,061 70.357 X421 X42 X462 60.0. 1 1Q5= -32- -33- Low Income Low Income Village South Coast Housing- Housing- Totals Quimby Parking Air Quality PA #1 PA #2 1995 1994 785,475 23,272 12,428 - 1,154,348 2,902,738 2,259,358 _ _ _ 597 - 597 - _ 67,120 - 67,120 67,120 - 257,026 257,026 4,056,211 _ - 105,996 192,154 361,340 - 361,340 361,340 2,�� 511,903 9�Q,Q - 1.411.374 511,903 .206.720 - 6.936, 183 75.475 4,166 1,434 5,600 129,156 - - - 7,197 _ - 34,840 34,840 217,891 217.891 260,361 222,057 1,434 258,331 431.554 511,903 - 511,903 - _ 67,120 - 67,120 67,120 _ _ - 361,340 - 361,340 361,340 785,475 23,272 12,428 (221,460) 1,409,940 3,008,026 6,076,169 785.475 23,272 12.428 718,903 1.409,940 3,948,389 6,504,629 715,425 24.0.960 1,411.374 4.206.720 36.183 -33- CITY OF LA QUINTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1995 Revenues: Taxes Intergovernmental Developer fees Interest Special assessments Miscellaneous Total revenues Expenditures: Planning and development Public works Capital outlay Debt service: Payment of advances 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 Community Lighting State Service Federal and Gas Tax Projects Assistance Landscape 302,301 - 105,930 68,513 372 3,149 - - 823,950 5,803 302,301 68,513 106,302 832,902 286,632 - - 881,890 286,632 881,890 15,669 68,513 106,302 (48,988) - - 260,361 - (810,862) (434,257) - - (,810,862) (173,896) - 15,669 (742,349) (67,594) (48,988) 9,822 1,584,811 127,655 119,345 2.S 4 --SALAU 462 Q6 70.3Z -34- EXHIBIT A-2 21,715 25.000 4,785,172 203,557 6,182,251 4,247,986 98,850 1.188 (10.450) (2,426,462) 380.007 Low Income Low Income 525,000 - - Village South Coast Housing- Housing- Totals Quimby Parking Air Quality PA #1 PA #2 1995 1994 - (265.611) (740,869) - 2,301,158 512,236 2,813,394 2,171,571 - - 13,276 - - 421,507 824,127 81,909 - - - - 81,909 76,485 16,941 1,188 1,274 52,485 71,328 215,250 270,872 _ _ _ _ - 823,950 622,186 5,067 - 10,870 535 98,850 1,188 14,550 2,358,710 583,564 4,366,880 3,965,776 - - 25,000 4,177,352 203,557 4,405,909 2,709,107 _ - - 1,168,522 1,070,678 607,820 - 607,820 446,486 21,715 25.000 4,785,172 203,557 6,182,251 4,247,986 98,850 1.188 (10.450) (2,426,462) 380.007 (1,815,371) X282,210) 525,000 - - - - 785,361 761,068 (15,500) - - - (265,611) (1,526,230) (1,042,338) 509,500 - - (265.611) (740,869) (281,270) 608,350 1,188 (10,450) (2,426,462) 114,396 (2,556,240) (563,480) 177,125 22,084 22,878 3,145,365 1,295.544 6,504,629 7,068,109 718.903 1,409,9M 3,948,382 6,50A-629 -35- 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, 1995 Revenues: Intergovernmental Total revenues Expenditures: Public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances (deficit) at end of year EXHIBIT A-3 Variable Favorable 1994 Budget Actual (Unfavorable) Actual $291,500 302,301 291,500 302,301 291,500 286,632 291,500 286,632 15,669 10,801 10,801 4,868 4,868 286,701 286,701 430,162 20,336 450,498 15,669 (163,797) - 202,041 (70,000) - 70,000 (68,054) (70,000) - 70,000 133,987 (70,000) 15,669 85,669 (29,810) 9,822 9,822 39,632 9_822 -36- CITY OF LA QUINTA Special Revenue Funds Community Service Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Interest Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT A-4 Variable Favorable 1994 Budget Actual (Unfavorable) Actual $ 32,450 68,513 36,063 52,122 32,450 68,513 36,063 52,122 156,239 156,239 32,450 68,513 36,063 (104,117) - - - 525,000 (785,931) (810,862) (24,931) - (785,931) (810,862)2( 4,931) 525,000 (753,481) (742,349) 1,584,811 1,584,811 83L M 842.462 -37- 11,132 420,883 1,163,928 11.132 EXHIBIT A-5 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, 1995 Variable Favorable 1994 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 100,688 105,930 5,242 516,024 Interest - 372 372 4,345 Total revenues 100,688 106,302 5,614 520,369 Excess (deficiency) of revenues (uses) over (under) expenditures 100,688 106,302 5,614 520,369 Other financing sources (uses): Operating transfers in - 260,361 260,361 34,027 Operating transfers out (436,634) (434,257) 2,377 (426,741) Total other financing sources (uses) (436,634) (173,896) 262,738 (392,714) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (355,946) (67,594) 268,352 127,655 Fund balances at beginning of year 127,655 127,655 - - Fund balances at end of year -38- EXHIBIT A-6 CITY OF LA QUINTA Special Revenue Funds Lighting and Landscaping Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Variable Favorable 1994 Budget Actual (Unfavorable) Actual Revenues: Interest $ - 3,149 3,149 3,834 Special assessments 826,545 823,950 (2,595) 622,186 Miscellaneous - 5.803 5,803 535 Total revenues 826,545 832.902 6,357 626.555 Expenditures: Planning and development - - - 19,977 Public works 984,377 881,890 102.487 640,516 Total expenditures 984.377 881,890 102,487 660.493 Excess (deficiency) of revenues over (under) expenditures 157 832)4S 8,988) 108,844 (33,938) Other financing sources (uses): Operating transfers out - - - (4,550) Total other financing sources (uses) - - - (4,550) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (157,832) (48,988) 108,844 (38,488) Fund balances at beginning of year 119,345 119,345 - 157,833 Fund balances at end of year(.$ 4Z) X44 119_345 -39- EXHIBIT A-7 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, 1995 Variable Favorable 1994 Budget Actual (Unfavorable) Actual Revenues: Developer fees $ 90,000 81,909 (8,091) 42,725 Interest 1,800 16,941 15,141 22,276 Total revenues 91,800 98,850 7,050 65,001 Expenditures: Capital outlay - - - 23,487 Total expenditures - - - 23,487 Excess (deficiency) of revenues over (under) expenditures 91,800 98,850 7,050 41,514 Other financing sources (uses): Operating transfers in - 525,000 525,000 - Operating transfers out (687,113) 15 500) 671,613 (525,000) Total other financing sources (uses) (687,113) 509,500 1,196,613 (525,000) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (595,313) 608,350 1,203,663 (483,486) Fund balances at beginning of year 177,125 177,125 - 660,611 Fund balances at end of year -40- CITY OF LA QUINTA Special Revenue Funds Village Parking Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Interest Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year EXHIBIT A-8 Variable Favorable 1994 Budget Actual (Unfavorable) Actual 1,500 1.188 (312) 986 1.500 1.188 (312) 986 5.463 5.463 1,500 1,188 (312) (4,477) 22.084 22.084 26.561 -41- 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, 1995 Revenues: Intergovernmental Interest Total revenues Expenditures: 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 EXHIBIT A-9 (10.973) (10.973) - (10,450) (10,450) 6,837 22.878 22.878 - 16.041 ULA5- ) -$Z� -42- Variable Favorable 1994 Budget Actual (Unfavorable) Actual $24,500 13,276 (11,224) 21,402 500 1.274 774 576 25,000 14.550 (10,450) 21,978 25.000 25.000 - 4.168 25,000 25.000 - 4.168 - (10.450) (10.450) 17.810 (10.973) (10.973) - (10,450) (10,450) 6,837 22.878 22.878 - 16.041 ULA5- ) -$Z� -42- CITY OF LA QUINTA Special Revenue Funds Low Income Housing Project Area No. 1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Taxes Developer fees Interest Miscellaneous Total revenues EXHIBIT A-10 Variable Favorable 1994 Budget Actual (Unfavorable) Actual $1,947,165 2,301,158 353,993 100,100 52,485 (47,615) 536,116 5,067 (531,049) 2,583,381 2,358,710 (224,671) Expenditures: Planning and development Capital outlay Payment of advances 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 3,766,205 4,177,352 (411,147) 225,015 607,820 (382,805) 3,991,220 4,785,172 (793,952) 1,700,574 33,760 139,682 1,874,016 2,549,631 240,961 18,431 2,809,023 (,1,407,839) (2,426,462) (1,018,623) (935,007) (4,680) (4,680) (1,407,839) (2,426,462) (1,018,623) (939,687) 3,145.365 3,145,365 4,085,052 1.737.526 718,903 (1.018.623) 3.145.365 -43- CITY OF LA QUINTA Special Revenue Funds Low Income Housing Project Area No. 2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Taxes Interest Total revenues Expenditures: Planning and development Payment of advances Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT A-11 Variable Favorable 1994 Budget _ Actual (Unfavorable) Actual $ 486,800 512,236 36,100 71,328 522,900 583,564 25,436 470,997 35,228 47,051 60,664 518,048 240,734 203,557 37,177 135,331 3,284 240,734 203,557 37,177 138,615 282,166 380,007 97,841 379,433 - (265,611) (265,611) (2,340) - (265,611) (265,611) (2,340) 282,166 114,396 1,295,544 1,295,544 $1.577.710 1.409.940 -44- (167,770) 377,093 918,451 1.295.544 DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long—term debt principal and interest. The City of La Quinta has three Debt Service Funds: 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. 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. -45- Assets Cash and investments Cash with fiscal agent :-repaid expense Due from other funds Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued expenses Due to other funds Advances from other funds Total liabilities Fund balances: Reserved for: Bond reserve requirement Prepaid expenses Unreserved: Designated for debt service Total fund balances Total liabilities and fund balances EXHIBIT B-1 CITY OF LA QUINTA Debt Service Funds Combining Balance Sheet June 30, 1995 Redevelopment Redevelopment Financing Totals Agency -PA #1 Agency -PA #2 Authority 1995 1994 $2,211,017 871,969 799,607 3,882,593 1,972,650 4,910 524,861 - 529,771 2,144,169 - - - - 399,971 1.589.903 L•� —Xj $ - - - - 648,937 526,983 194,083 - 721,066 - - 39,135 - 39,135 551,038 511,903 - 511,903 - 1.038,886 233,218 - 1,272,104 1,199.975 509,490 704,718 1,214,208 1,957,747 - - - 399,971 1,177,041 654,122 94,889 1,926,052 2,549,000 1,177,041 1,163,612 799,607 3,140,260 4,906,718 -46- 1.396.830 J",M 4.412.364 6.106.693 CITY OF LA QUINTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1995 Revenues: Taxes Intergovernmental Interest Rental income Miscellaneous Total revenues Expenditures: Planning and development Debt service: Principal Interest Payment of advances Payments under pass-through obligations Mandated education contribution Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Litigation settlement proceeds Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT B-2 Redevelopment Redevelopment Financing Totals Agency -PA #1 Agency -PA #2 Authority 1995 1994 $9,289,918 94,878 2,048,950 74,798 9,384,796 2,123,748 153,754 200,000 1,980,982 281,013 5,979,079 512.025 9,106,853 37,340 80,000 817,726 613,282 975,073 39.145 2,562,566 277,943 (438,818) 546,624 270,620 (2,462,714) - (1,916,090) 270,620 - 11,338,868 11,061,864 6,502 6,502 - 37,887 207,563 189,555 699,478 699,478 226,994 - - 3.995 743,867 12,252,411 11,482,408 4,502 195,596 195,854 155,000 435,000 850,000 544,478 3,343,186 3,947,238 - 894,295 815,010 6,954,152 6,217,002 551.170 551,038 703,980 12,373,399 12,576,142 39.887 (120,988) (1,093,734) 817,244 239,290 (2,462,714) (842,768) 3,378,606 - (1,645,470) 2,775,128 (1,638,147) (168,198) 39,887 (1,766,458) 1,681,394 2.815,188 1,331,810 759,720 4,906,718 3.225,324 51.177.041 1.163.612 2� 3.140,260 X71 -47- 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, 1995 Revenues: Taxes Interest Miscellaneous Total revenues Expenditures: Planning and development Debt service: Principal Interest Payment of advances Payments under pass-through obligations Mandated education contribution Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Litigation settlement proceeds Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT B-3 Variable Favorable 1994 Budget Actual (Unfavorable) Actual $9,320,925 9,289,918 (31,007) 9,177,876 64,400 94,878 30,478 76,185 3,995 9,385,325 9,384,796 (529) 9,258,056 14,500 153,754 (139,254) 193,854 200,000 200,000 - 815,000 1,961,485 1,980,982 (19,497) 2,495,561 - 281,013 (281,013) - 6,022,955 5,979,079 43,876 5,272,078 511,900 512,025 (125) 511,903 8,710,840 9,106,853 (396,013) 9,288,396 674,485 277,943 (396,542) (30,340) - 546,624 546,624 239,290 (2,217,029) (2,462,714) (245,685) (842,768) 3,378,606 (2,217,029) (1,916,090) 300,939 2,775,128 (1,542,544) (1,638,147) (95,603) 2,744,788 2,815,188 2,815,188 70,400 $1.272.644 1,117JOR (95.603) 2.815,188 -48- EXHIBIT B-4 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, 1995 Variable Favorable 1994 Budget Actual (Unfavorable) Actual Revenues: Taxes $2,013,000 2,048,950 35,950 1,883,988 Interest 78,100 74,798 (3,302) 88,443 Total revenues 2,091,100 2,123,748 32,648 1,972,431 Expenditures: Planning and development 7,250 37,340 (30,090) - Debt service: Principal 85,000 80,000 5,000 35,000 Interest 817,840 817,726 114 903,324 Payment of advances - 613,282 (613,282) 815,010 Payments under pass-through obligations 971,875 975,073 (3,198) 944,924 Mandated education contribution 39,135 39,145 10 39,135 Total expenditures 1,921,100 2,562,566 (641.466) 2,737,393 Excess (deficiency) of revenues over (under) expenditures 170,000 (438,818) (608,818) (764,962) Other financing sources (uses): Operating transfers in - 270.620 270,620 - Total other financing sources (uses) - 270.620 270,620 - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 170,000 (168,198) (338,198) (764,962) Fund balances at beginning of year 1.331,810 1.331,810 - 2,096,772 Fund balances at end of year 1.501.810.163,.612 -49- EXHIBIT B-5 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, 1995 Variable Favorable 1994 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 5,200 6,502 1,302 - Interest 32,000 37,887 5,887 24,927 Rental income 699,500 699,478 22) 226,994 Total revenues 736,700 743,867 7,167 251,921 Expenditures: Planning and development 5,200 4,502 698 2,000 Debt service: Principal 155,000 155,000 - - Interest 544,500 544,478 22 548,353 Total expenditures 704,700 703,980 720 550,353 Excess (deficiency) of revenues over expenditures and other sources (uses) 32,000 39,887 7,887 (298,432) Fund balances at beginning of year 759,720 759,720 - 1,058,152 Fund balances at end of year $12L.M Z9QZ 759.720 -50- 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 six Capital Projects Funds: Sewer Assessment Districts 91-1 and 92-1 - To account for specific improvements to sewer services from property owners within the assessment area. Infrastructure Fee Fund - To account for the accumulation of resources, provided through developer fees for the acquisition, construction or improvement of the City's infrastructure as defined in Resolution 98-39. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. Capital Projects Fund - To account for the planning, design and construction of various capital projects throughout the City of La Quinta and the Redevelopment Agency. Redevelopment Agency. Capital Projects Project Area 1 and 2 - To account for the bond proceeds, interest and other funding that will be used for development, planning, construction and land acquisition. -51- CITY OF LA QUINTA Capital Projects Funds Combining Balance Sheet June 30, 1995 Assessment Assessment District District Capital 91-1 92-1 Infrastructure Improvement Assets Cab estments $ - 328,989 3,366,351 - Cash WiL >scal agent - - - - Accounts receivable - - - 26,548 Due from other funds - 26,702 - - Due from other governments - - - - Deposits - - - - Total assets Liabilities and Fund Balance Liabilities: Accounts payable $ - - - 8,328 Deposits payable - - 52,100 - Retentions payable - - - - Due to other funds 154 26,548 Total liabilities 154 52,100 34.876 Fund balances: Reserved for: Deposits - - - - TDC owner participation agreement - - - - Unreserved: Designated for operations/projects 154) 355,691 3,314,251 (8,328) Total fund balances 154) 355,691 3.314,251 (8,328) Total liabilities and fund balances 521 3.366.351 -52- EXHIBIT C-1 Redevelopment Redevelopment Totals Agency-PA#1 Agency-PA#2 1995 1994 _ 6,100 3,701,440 2,965,438 - 1,953,166 1,953,166 4,921,574 - 89,626 116,174 - 124,190 - 150,892 260,361 _ _ - 1,142,260 5.122 124,190 2,048.892 5.921.672 9.294.755 6,206 2,326 16,860 718,188 - - 52,100 52,100 _ _ - 94,978 124.190 150,892 5,095,076 6,206 126.516 219.852 5,960,342 _ _ - 5,122 - 1,820,357 1,820,357 1,820,793 117.984 102,019 3,881,463 1.508,498 117.984 1,922.376 5.701,820 3,334,413 124,190 2.048.892 5.921.672 9,22-4=,7U5 5 -53- CITY OF LA QUINTA Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1995 Assessment Assessment District District Capital 91-1 92-1 Infrastructure Improvement Revenues: Intergovernmental $ - - - 471,983 Developer fees - - 1,396,711 - Interest - 18,082 156,113 - Special assessments - - - - Miscellaneous - 600 13,888 - Total revenues - 18,682 1,566,712 471,983 Expenditures: Planning and development Capital outlay Debt service: Principal Interest Payment of advances Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds Payments to refunded bond escrow agent Litigation settlement proceeds Litigation settlement payments Proceeds of advances from City Total other financing sources Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances (deficit) at beginning of year, as restated Fund balances (deficit) at end of year 2,154,566 3,246 - - - 3,246 - 2,154,566 (3,246) 18,682 1,566,712 (1,682,583) _ _ - 1,674,255 (5,122) (68,862) (823,842) - (68,862) 1,674,255 (823,842) (8,368) (50,180) 742,870 (8,328) 8,214 405,871 2,571,381 - (1 54) 3,314.251 (8,328) -54- EXHIBIT C-2 Redevelopment Redevelopment Totals Agency-PA#1 Agency-PA#2 1995 1994 _ 10,650 482,633 2,975,750 _ _ 1,396,711 1,465,144 _ 70,721 244,916 213,091 _ _ - 258,601 14,488 25,000 81,371 2,138,748 4,937,586 977,026 458,804 1,435,830 1,416,005 178,474 - 2,333,040 14,286,844 _ 810,491 810,491 - 104,911 - 108,157 16,828 137,210 1,260,411 1,269,295 4,687,518 15,856,887 (1,260,411) (1,187,924) (2,548.770) (10,919,301) 2,462,714 447,578 4,584,547 3,275,047 (1,305,503) - (2,203,329) (2,227,752) 29,932,827 _ - - (27,922,526) 353,118 - 353,118 52,955 _ _ - (2,000,000) 2,621,457 - 2,621,457 - 4,131,786 447,578 5,355,793 1,110,551 2,871,375 (740,346) 2,807,023 (9,808,750) (2,753,391) 2,662,722 2,894,797 13,143,163 117,284 .334.41 -55- EXHIBIT C-3 CITY OF LA QUINTA Capital Project Funds Assessment District 91-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 -56- Variable Favorable 1994 Budget Actual (Unfavorable) Actual Revenues: Interest $ - - 20,007 Total revenues - - - 20,007 Expenditures: Debt services: Interest - 3,246 (3,246) - Capital outlay - - - 616,109 Total expenditures - 3,246 (3,246) 616,109 Excess (deficiency) of revenues over (under) expenditures - (3,246) (3,246) (596,102) Other financing sources (uses): Operating transfers out - (5,122) (5,122) - Total other financing sources (uses) - (5,122) (5,122) - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (8,368) (8,368) (596,102) Fund balances at beginning of year 8,214 8,214 - 604,316 Fund balances at end of year 8.214 -LL54) ($.3-6a) 8_214 -56- CITY OF LA QUINTA Capital Project Funds Assessment District 92-1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Interest Special assessments Miscellaneous Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Proceeds of bonds Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT C-4 -57- Variable Favorable 1994 Budget Actual (Unfavorable) Actual $ - 18,082 18,082 36,952 _ - - 258,601 600 600 - 18.682 18.682 295,553 1,223 1.223 18,682 18.682 294.330 (589,153) (68,862) 520,291 (1,399,627) 1.582,901 (589,153) (68,862) 520.291 183,274 (589,153) (50,180) 538,973 477,604 405.871 ILj,$L,M) 405.871 64 - .9.7 (71.733) 405.871 -57- CITY OF LA QUINTA Capital Project Funds Infrastructure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Developer fees Interest Miscellaneous Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT C-5 -58- Variable Favorable 1994 Budget Actual (Unfavorable) Actual $ 735,000 1,396,711 661,711 1,423,367 26,600 156,113 129,513 97,653 13,888 13,888 25,000 761,600 1,566,712 805,112 1,546,020 209,842 209,842 1,436,540 209,842 - 209,842 1,436,540 551,758 1,566,712 1,014,954 109,480 - - - 392,714 (2,297,511) X823,842) 1,473,669 (55,000) (2.2 7,511) (823,842) 1,473,669 337,714 (1,745,753) 742,870 2,488,623 447,194 2,571,381 71,381 2,571,381 - 2,124,187 825.628 3.314,251 2,488,623 2,571,381 -58- CITY OF LA QUINTA Capital Project Funds Capital Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Intergovernmental Miscellaneous Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year EXHIBIT C-6 Variable Favorable 1994 Budget Actual (Unfavorable) Actual $ 825,087 471,983 (353,104) - 252,420 - (252,420) - 1,077.507 471.983 (605.524) - 6,882,093 2,154.566 4,727.527 - 6,882.093 2,154,566 4,727.527 - (5,804,586) (1,682.583) 4,122.003 - 5,335.824 1,674,255 (3 661,569) - 5.335.824 1,674.255 (3,661,569) - (468,762) (8,328) 460,434 - $ (468.762) (8.328) 460.434 - -59- CITY OF LA QUINTA Capital Project Funds EXHIBIT C-7 Redevelopment Agency PA #1 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Intergovernmental Total revenues aitures: ng and development Capital outlay Debt service: Interest Payment of advances Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of bonds Payments to refunded bond escrow agent Litigation settlement proceeds Litigation settlement payments Proceeds of advances from City Total other financing sources (uses) Budget_ 814,713 Variable Favorable 1994 Actual (Unfavorable) Actual 1,508,784 1,508,784 977,026 178,474 104,911 (162,313) (178,474) (104,911) 814,713 1,260,411 (445,698) 1,045,837 8,366,478 16,828 105,897 9,535,040 (814,713) (1,260,411) (445,698) (8,026,256) 2,217,029 2,462,714 245,685 2,242,395 (1,171,052) (1,305,503) (134,451) (767,663) 28,349,926 - - (27,922,526) - 353,118 353,118 52,955 - - (2,000,000) 2,621,457 2,621,457 1,045,977 4,131,786 3,085,809 _(44,913) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 231,264 Fund balances (deficit) at beginning of year (2,753,391) Fund balances (deficit) at end of year $(2.522.127) -60- 2,871,375 2,640,111 (8,071,169) (2,753,391) - 5,317,778 117.984 2.640.111 2.753.391) CITY OF LA QUINTA Capital Project Funds Redevelopment Agency - PA #2 Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Intergovernmental Developer fees Interest Total revenues Expenditures: Planning and development Capital outlay Debt service: Principal Payment of advances Total expenditures Excess (deficiency) of revenues (under) over 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, as restated Fund balances (deficit) at end of year EXHIBIT C-8 810,491 (810,491) - 31,313 2,537,388 1,269,295 1,268,093 3,769,603 (2,532,388) (1,187,924) 1,344,464 (2,208,623) 701,570 447,578 (253,992) 606,482 (5,462) 701,570 447,578 (253,992) 601,020 (1,830,818) (740,346) 1,090,472 (1,607,603) 2,662.722 2,662,722 - 4,709,941 $ 831.904 1.922.376 1,020,472 -61- Variance Favorable 1994 Budget Actual (Unfavorable) Actual $ - 10,650 10,650 1,466,966 - - - 41,777 5,000 70,721 65,721 52,237 5,000 81,371 76,371 1,560,980 2,537,388 458,804 2,078,584 370,168 - - - 3,368,122 810,491 (810,491) - 31,313 2,537,388 1,269,295 1,268,093 3,769,603 (2,532,388) (1,187,924) 1,344,464 (2,208,623) 701,570 447,578 (253,992) 606,482 (5,462) 701,570 447,578 (253,992) 601,020 (1,830,818) (740,346) 1,090,472 (1,607,603) 2,662.722 2,662,722 - 4,709,941 $ 831.904 1.922.376 1,020,472 -61- (This page intentionally left blank) -62- AGENCY FUNDS Agency funds are used to account for assets held by the City as an agent for an individual, private organizations and other governmental units. The agency funds and their purposes are as follows: The City of La Quinta has seven 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. Deferred Compensation Fund - To account for deposits held by the City and monies held on behalf of employees under the City's deferred compensation plan. Assessment District No 88-1 89-2. 90-1. 91-1. 92-1 - To account for assessments paid to the City for debt service payments on bond issues used to finance sewer improvements. -63- EXHIBIT D-1 CITY OF LA QUINTA Combining Balance Sheet - All Agency Funds June 30, 1995 Arts in Employee's Assessment Assessment Assessment Assessment Assessment Public Deferred District District District District District Totals Places Compensation No. 88-1 No. 89-2 No. 90-1 No. 91-1 No. 92-1 1995 1994 Assets Cash and investments $234,651 279,966 Due from other governments - - Total assets 234 �i51 �Z 25St Liabilities Deposits payable $234,651 - Deferred compensation payable - 279,966 Due to bondholders - - Total liabilitiesZ.34.651 StL L.a7VV 273,392 235,636 203,520 375,715 258,353 1,861,233 1,857,049 49.647 234,651 187,727 - - - - - 279,966 204,966 273,392 235.636 203.520 375.715 258.353 1.346.616 1.514.003 273.39 � Z�$�� 1 $61.233 1.906.696 -64- CITY OF LA QUINTA All Agency Funds Combining Statement of Changes in Assets and Liabilities Year ended June 30, 1994 ARTS IN PUBLIC PLACES Assets Cash and investments Liabilities Deposits payable EMPLOYEE'S DEFERRED COMPENSATION Assets Cash and investments Liabilities Deferred compensation payable ASSESSMENT DISTRICT NO. 88-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO. 89-2 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders EXHIBIT D-2 Balance at Balance at July 1, 1994 Additions Deletions June 30, 1995 $ 187,727 67,971 21,042 $ 253,253 133,532 113,393 273,392 5.078 5.078 $ 258.331 133.532 118.471 273.392 258.331 297.645 282,584 273.392 $ 243,865 156,086 164,315 235,636 4.949 4,949 248.814 156.086 169.264 235,636 $ 248.814 401.609 414.787 235.636 -65- ASSESSMENT DISTRICT NO. 90-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO. 91-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders ASSESSMENT DISTRICT NO. 92-1 Assets Cash and investments Due from other governments Total assets Liabilities Due to bondholders EXHIBIT D-2 (Continued) CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at July 1, 1994 Additions Deletions June 30, 1995 $ 236,821 179,160 212,461 203,520 9.084 9.084 245.905 --M-1-0 221.545 203.520 245.905 477.187 519.572 _ 203.520 $ 419,836 329,987 374,108 375,715 17.306 17,306 437.142 329.987 391.414 _ 375.715 $ 437.142 678,714 740.141 375.715 $ 310,581 212,331 264,559 258,353 13,230 13.230 $ 323.811 212.331 277.789 258.353 -66- EXHIBIT D-2 (Continued) CITY OF LA QUINTA Agency Funds Combining Statement of Changes in Assets and Liabilities (Continued) Balance at Balance at July 1, 1994 Additions Deletions June 30, 1995 TOTALS -ALL AGENCY FUNDS Assets Cash and investments $1,857,049 1,154,067 1,149,883 1,861,233 Due from other governments 49,647 - 49,647 - Total assets $1,906,696 1.154.067 1.199.530 1,861-M Liabilities Deposits payable $ 187,727 142,420 95,496 234,651 Deferred compensation payable 204,966 75,000 - 279,966 Due to bondholders 1_,514,003 2,443,755 2,611,142 1.346.616 Total• • own WIT -wow., -67- (This page intentionally left blank) -68- GENERAL FIXED ASSETS ACCOUNT GROUP -69- CITY OF LA QUINTA Comparative Schedule of General Fixed Assets - By Source June 30, 1995 General fixed assets: Land Buildings Leasehold improvements Furniture and fixtures Vehicles Construction in progress Total general fixed assets Investment in general fixed assets from: General Fund -70- 1995 $ 8,041,393 12,456,122 201,070 681,565 393,279 Exhibit E-1 1994 8,041,393 10,312,233 201,070 552,963 329,101 1,158,579 CITY OF LA QUINTA Schedule of General Fixed Assets - By Function and Activity June 30, 1995 Function and Activity General Government Legislative City Manager Fiscal Services Administrative Services Parks and Recreation Building and Safety Planning and Development Public Works Total Furniture and Land Fixtures $8,041,393 - 11,934 - 60,871 - 237,348 - 60,145 2,360 - 55,393 - 60,564 192.950 $8.041.393 Exhibit E-2 Improve - Vehicles ments Buildings Total 12,456,122 20,497,515 - 11,934 _ 60,871 - 237,348 _ - 60,145 - 201,070 - 203,430 250,906 - - 306,299 - 60,564 142,373 - 335.323 3ILM201..070 12.456.122 21.773.429 -71- Exhibit E-3 CITY OF LA QUINTA Schedule of Changes in General Fixed Assets - By Function and Activity June 1995 Function and Activity Beginning Balance Additions Deletions Ending Balance General Government $19,512,205 2,143,890 (1,158,579) 20,497,516 Legislative 11,934 - - 11,934 City Manager 60,871 - - 60,871 Fiscal Services 123,450 113,898 - 237,348 Administrative Services 59,482 663 - 60,145 Parks and Recreation 203,430 - - 203,430 Building and Safety 288,442 17,857 - 306,299 Planning and Development 55,685 4,879 - 60,564 Public Works 279.840 55,482 - 335.322 Total $20.595.3392.336.669 (l. 51 8.579) 21.773.429 -72- STATISTICAL SECTION -73- CITY OF LA QUINTA General Governmental Expenditures by Function Last Ten Fiscal Years Fiscal Year Ending General Public Public Community Planning & Capital June 30 Government Safetv Works Service Development Projects Total 1986 401,972 1,557,160 (1) 140,798 (1) - 2,099,929 1987 709,392 1,297,511 (1) 513,785 (1) - 2,520,687 1988 833,100 1,384,700 (1) 206,300 (1) 1,449,200 3,873,299 1989 1,040,895 1,491,594 (1) 701,175 (1) - 3,233,663 1990 1,514,110 1,883,105 (1) 928,798 (1) - 4,326,012 1991 1,968,275 2,501,105 (1) 777,366 (1) - 5,246,745 1992 1,921,155 2,155,813 618,612 157,897 904,171 11,813 5,769,461 1993 1,807,205 2,393,202 600,253 146,686 884,537 - 5,831,883 1994 2,359,673 2,786,575 673,144 119,265 511,416 - 6,450,073 1995 1,565,265 3.143,697 576,304 199,115 538,610 282,113 6,305,104 (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 —74— CITY OF LA QUINTA TABLE 2 General Governmental Revenue by Source Last Ten Fiscal Years Fiscal Year Ending June 30 Taxes Licenses and Permits Inter- Governmental Charges for Services Fines and Penalties Interest Miscellaneous Total 1986 1,275,522 1,557,655 268,864 (1) (1) 176,421 34,912 3,313,374 1987 1,480,542 17211,849 338,124 (1) (1) 265,340 121,585 3,417,440 1988 1,654,700 1,932,200 384,200 (1) (1) 242,500 278,300 4,491,900 1989 2,306,887 36.526307 496.621 (1) (1) 368,136 336,445 7,164,396 1990 3,154,942 3,286,872 630,791 (1) (1) 1557530 114,686 7,342,821 1991 3,288,565 785,381 790,880 602,600 (1) 642,813 101,411 6,211,650 1992 3,135,044 576,293 921,460 488,015 9,043 261,380 120,867 5,512,102 1993 3,581,830 622,107 1.146,041 384,000 11,546 238,321 219,641 6,203,486 1994 4,212,604 777,241 1,579,005 469,695 21,027 585,264 1,042,872 8,687,708 1995 4,946,304 902.914 747.784 551,727 (2) 718.310 137,028 8,004,067 (1) Previously included in Licenses and Permits (2) Included in Intergovernmental Source: City of La Quinta audited Financial Statements -75- Fiscal Year Ending 1991 1992 1993 1994 1995 Note: Source Total Tax Levy 280,339 282,201 282,630 288,407 549,273 CITY OF LA QUINTA Property Tax Levies and Collections Last Five Fiscal Years Current Percent Delinquent Tax of Levy Tax Collection Collected Collections 256,297 91.4% 21,921 260,365 92.3% 25,703 244,731 86.6% 14,824 275,752 95.6% 900 487,043 88.7% 786 TABLE 3 Percent of Total Collections to Tax Levy 99.2% 101.4% 91.8% 95.9% 88.8% 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding no -low and supplemental property taxes. 3. Detail prior to fiscal year )t available. City of La Quint;, i Riverside -76- CITY OF LA QUINTA Schedule of Net Taxable Value Last Five Fiscal Years Total Fiscal Year Assessed Less Less Net Ending Secured Unsecured Property Property Homeowner's Taxable June 30 Property Property Value Exemptions Exemptions Value 1991 1,278,307,230 7,156,844 1,285,464,074 3,474,595 (1) 1,281,989,479 1992 1,594,767,374 6,396,816 1,601,164,190 3,605,829 (1) 1,597,558,361 1993 1,773,323,102 6,943,559 1,780,266,661 3,814,434 (1) 1,776,452,227 1994 1,872,768,156 8,119,527 1,880,887,683 3,946,378 18,901,202 1,858,040,103 1995 1,927,834,908 22,822,285 1,950,657,193 4,357,954 20,518,400 1,925,780,839 Note: Detail prior to fiscal year 1991 not available (1) Homeowner's exemption not available Source: County of Riverside -77- CITY OF LA QUINTA Properr Tax Rates - Direct and Overlapping Governments Last Four Fiscal Years (per $100 of Assessed Value) General Desert Sands Unified College of the Desert Coachella Valley Water District Total Tax Rate NOTE: Detail prior to fiscal year 1991 not available Source: County of Riverside 1994/95 1993/94 1992/93 1991/92 1.00000 1.00000 1.00000 1.00000 0.09750 0.09750 0.09750 0.09750 0.00000 0.00000 0.00096 0.00132 0.02080 0.02080 0.02690 0.03050 1.11830 1.11830 1.12536 1.12932 —78— TABLE 5 CITY OF LA QUINTA Special Assessment Billings and Collections Last Five Fiscal Years Year Special Special Ratio of Ended Assessment Assessment Collections June 30 Billinss Collections (1) to Billings 1991 355,924 335,177 99.8 1992 557,574 552,249 99.0 1993 559,029 548,291 98.8 1994 766,011 734,560 95.9 1995 836,502 737,700 88.2 (1) Includes Prepayments and Foreclosures Source: Muni Financial Services -79- Source CITY OF LA QUINTA TABLE 7 Schedule of Direct and Overlapping Bonded Debt June 30. 1995 Excludes tax allocation bonds to be sold. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. California Municipal Statistics, Inc. -80-. Percent June 30, 1995 Direct and Overlapping Bonded Debt Applicable Bonded Debt Riverside County Board of Education Certificates of Participation 0.975 226,367 Riverside County Building Authorities 0.975 4,742,498 Riverside County Free Library Authority 1.618 2,023 Desert Community College District Certificates of Participation 3.740 163,962 Desert Sands Unified School District Authority 8.926 10,405,485 Coachella Valley County Water District, I.D. #55 71.806 9,575,330 Coachella Valley County Water District, I.D. #58 2.035 223,341 Coachella Valley County Water District, I.D. #71 Storm Water Unit Certificates of Participation 6.220 1,072,950 City of LaQuinta 100.000 0 (1) City of La Quinta 1915 Act Bonds 100.000 6,235.000 Total Direct and Overlapping Bonded Debt 32,646,956 (2) Excludes tax allocation bonds to be sold. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. California Municipal Statistics, Inc. -80-. CITY OF LA QUINTA Computation of Legal Debt Margin June 30, 1995 Assessed Valuation Debt Limit - 15 % of Assessed Valuation Amount of Debt Applicable to Debt Limit Legal Debt Margin Notes: 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. Source: City of La Quinta -81- $1,905.657.193 285.848.579 -0- $285.848.579 TABLE 8 Fiscal Year Ending 1992 1993 1994 1995 Note Source CITY OF LA QUINTA Revenue Bond Coverage Local Agency Revenue Bonds (City Hall Project) Last Four Fiscal Years Revenue Available for Debt Service 182,784 548,352 548,352 699,477 Debt Service Requirements Principal Interest Total 0 182,784 182,784 0 548,352 548,352 0 548,352 548,352 155,000 544,477 699,477 Coverage 1.00 1.00 1.00 1.00 Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. City of La Quinta -82- CITY OF LA QUINTA TABLE 10 Demographic Statistics Last Nine Fiscal Years Source: (1) City of La Quinta (2) State of California Department of Finance -83- Total City Fiscal Year Population Riverside Population Ending Square Percent County Percent June 30 Miles (1) Population (2) Change Population (2) Of County 1987 23.2 8,188 14.2 893,400 0.9% 1988 23.2 9,274 13.3 983,800 0.9% 1989 23.2 10,267 10.7 1,057,200 1.0% 1990 23.3 10,587 3.1 1,144,400 0.9% 1991 23.8 13,070 23.5 1,225,800 1.1% 1992 28.0 14,727 12.7 1,281,000 1.1% 1993 28.2 15,589 5.9 1,323,500 1.2% 1994 28.2 16,680 7.0 1,357,400 1.2% 1995 31.2 17,591 5.5 1,393,500 1.3% Source: (1) City of La Quinta (2) State of California Department of Finance -83- CITY OF LA QUINTA Property Value and Construction Activity Last Five Fiscal Years Fiscal Year Ending June 30 Property Value (1) Commercial Construction Units Value 1991 1,278,307,230 3 7,299,000 1992 1,594,767,374 12 7,334,871 1993 1,773,323,102 7 2,441,392 1994 1,872,768,156 13 6,081,796 1995 1,927,834,908 4 1,100,119 NOTE: Detail prior to fiscal year 1991 not available (1) From Schedule of Net Taxable Value Source: City of La Quinta 27-1M TABLE 11 Residential Construction Units Value 304 38,320,527 320 35,744,443 324 39,145,539 531 79,318,969 238 29,163,494 Source: Taxpayer KSL PGA West Corporation Sunrise Desert Partners Resolution Trust Corporation Hotel Associates of Palm Springs TD Desert Development LTD Wilma -La Quinta Partnership J.M. Peters Company Washington -Adams Partnership Wal-Mart Stores La Quinta Golf Course Properties City of La Quinta CITY OF LA QUINTA Principal Taxpayers June 30, 1995 -85- Type of Activity Residential and Commercial Vacant Residential Vacant Residential Commercial Vacant Land Residential Vacant Residential Commercial Commercial Vacant Commercial TABLE 12 Source: CITY OF LA QUINTA TABLE 13 Major Employers June 30, 1995 Employer Employees Activity La Quinta Hotel and Golf Resort 900 Resort Hotel PGA West 317 Golf Resort Wal-Mart 250 Retailer Albertson's 126 Groceries Vons 103 Groceries Ralph's 100 Groceries Simon Motors 65 Auto Dealer Cliff House 65 Restaurant City of La Quinta 62 Municipal Government Red Robin 50 Restaurant City of La Quinta —86— CITY OF LA QUINTA Schedule of Insurance in Force June 30, 1995 Company Name Policy Number Coverage Hartford PEBBX6478 Employee Dishonesty, $300,000 07/01/95 - 96 Forgery, Computer Fraud Unigard BA610855 Primary Auto Liability $9,876,284 07/01/95 - 96 Comprehensive & Collision Firemans Fund MXI80335568 Fire Truck Physical Damage of $125,000 S.I.R. Van Pelt/Spartan Affiliated FMTC219 All Risk Property Insurance to $10,000,000. (Excluding Quake & Flood) Coachella Valley Certificate #5 Comprehensive General Joint Powers Liability Insurace Authority CARMA Certificate #5 Excess Comprehensive General Laibilty Coachella Valley Certificate #5 Worker's Compensation Joint Powers Insurance Authority LAWCX Certificate 45 Excess Worker's Compensation Source: City of La Quinta —87— TABLE 14 Limits Term Premium $1,000,000 05/01/95 - 96 $2,778 $300,000 07/01/95 - 96 $13,080 $185,000 07/01/95 - 96 $1,861 $9,876,284 07/01/95 - 96 $8,751 $10,000 Excess 07/01/95 - 96 $79,223 of $125,000 S.I.R. Excess of $1,000,000. 07/01/95 - 96 $23,661 to $10,000,000. $250,000 07/01/95 - 96 $111,670 $250,000 07/01/95 - 96 $4,114 Statutory CITY OF LA QUINTA TABLE 15 Miscellaneous Statistical Data June 30, 1995 Date of Incorporation ....................................... May 2, 1982 Type of City ....................................... General Law Form of Government ....................................... Council / Manager City Employees ....................................... 62 City Land Area (square miles) .................................... 31.2 Population ....................................... 17,591 Number of Parks ....................................... 4 Total Acreage ....................................... 39 Miles of Streets .................... I .................. 142.0 Miles of Bike Paths ....................................... 3.0 Number of Major Intersections .................................. 29 Number of Traffic Signals and Safety Lighting ....................... 15 Number of Traffic Signs ....................................... 2,430 Number of Street Lights ....................................... 7 Public Schools ....................................... 3 Private Schools ....................................... 1 Churches....................................... 3 Banks/Savings and Loan ....................................... 2 Number of Single Family Units - Detached .......................... 5,962 Number of Single Family Units - Attached .......................... 2,227 Number of Multiple Family Units ................................ 481 Number of Mobile Home ....................................... 247 Source: City of La Quinta —88—