2003-2004 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)� CITY OF LA QUINTA
La Quinta, California
� Comprehensive Annual Financial Report
Year Ended June 30, 2004
PILE -COPY
(File copy must 6e rctumco,, thank you)
CITY OF LA QUINTA
La Quinta, California
Comprehensive Annual Financial Report
Year ended June 30, 2004
Prepared by
FINANCE DEPARTMENT
JOHN M. FALCONER
Director of Finance
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CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i
List of Principal Officials xi
Organizational Chart xii
Certificate of Award for Outstanding Financial Reporting (CSMFO) xiii
Certificate of Achievement for Excellence in Financial Reporting (GFOA) xiv
FINANCIAL SECTION
Independent Auditors' Report
I
Management's Discussion and Analysis (Required Supplementary Information)
3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
18
Statement of Activities
19
Fund Financial Statements:
Governmental Funds:
Balance Sheet
20
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
22
Statement of Revenues, Expenditures and Changes in Fund Balances
24
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
26
Proprietary Funds:
Statement of Net Assets
27
Statement of Revenues, Expenses and Changes in Net Assets
28
Statement of Cash Flows
29
Fiduciary Funds:
Statement of Fiduciary Assets and Liabilities — Agency Funds
30
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS, (Continued
Page
FINANCIAL SECTION, (Continued)
Notes to the Basic Financial Statements
31
REQUIRED SUPPLEMENTARY INFORMATION:
Notes to Required Supplementary Information
69
Budgetary Comparison Schedules:
General Fund
70
SUPPLEMENTARY SCHEDULES:
Non -Major Governmental Funds:
Combining Balance Sheet
74
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
75
Non -Major Special Revenue Funds:
Combining Balance Sheet
78
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
80
Budgetary Comparison Schedules:
State Gas Tax Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
82
Federal Assistance Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 83
Lighting and Landscape Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 84
State Law Enforcement Block Grant (SLESF):
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 85
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued
Quimby Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
86
Public Safety Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
87
Arts in Public Place Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
88
South Coast Air Quality Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
89
Intermodal Surface Transportation Act (ISTEA):
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
90
Local Law Enforcement Block Grant (LLEBG):
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
91
Coachella Valley Violent Crime Task Force Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
92
Low/Moderate Income Housing Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
93
Low/Moderate Income Housing Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
94
Low/Moderate Bond — Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
95
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued)
Major and Non -Major Debt Service Funds:
Budgetary Comparison Schedules:
Redevelopment Agency Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
98
Redevelopment Agency Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
99
Financing Authority Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
100
Major and Non -Major Capital Projects Funds:
Budgetary Comparison Schedules:
Combining Balance Sheet
102
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
104
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
106
Redevelopment Agency Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
107
2004 Low/Moderate Income Bond Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
108
Infrastructure Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
109
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued
Transportation Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
110
Parks and Recreation Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
111
Civic Center Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
112
Library Development Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
113
County Library Development Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
114
Community Center Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
115
Street Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
116
Park Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances -- Budget and Actual
117
Fire Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
118
Assessment District 2001-1 Phase VI Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
119
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS, (Continued).
Page
FINANCIAL SECTION. (Continued)
Redevelopment Agency Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 120
Redevelopment Agency Taxable Bond Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 121
Financing Authority Capital Projects Fund:
Schedule of Revenues, Expenditures and Clianges in Fund
Balances — Budget and Actual 122
Internal Service Funds:
Combining Statement of Net Assets
124
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
125
Combining Statement of Cash Flows
126
Agency Funds:
Combining Balance Sheet
128
Statement of Changes in Assets and Liabilities
130
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source
134
Schedule by Function and Activity
135
Schedule of Changes by Function and Activity
136
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2004
TABLE OF CONTENTS, (Continued)
Table No.
Page
ATISTICAL SECTION
General Fund Expenditures by Function
1
138
General Fund Revenues by Source
2
139
Property Tax Levies and Collections
3
140
Schedule of Net Taxable Value
4
141
Property Tax Rates - Direct and Overlapping Governments
5
142
Special Assessment Billings and Collections
6
143
Schedule of Direct and Overlapping Bonded Debt
7
144
Computation of Legal Debt Margin
8
145
Revenue Bond Coverage
9
146
Demographic Statistics
10
147
Property Value, Construction Activity, and Bank Deposits
11
148
Principal Taxpayers
12
149
Major Employers
13
150
Schedule of Insurance in Force
14
151
Miscellaneous Statistical Data
15
152
General Fund Balance Trends
16
153
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November 15, 2004
P.O. Box 1504
78-495 CALLF, TAMPICO
LA QUINTA, CALIFORNIA 92253
Honorable Mayor, City Council,
and City Manager
City of La Quinta
La Quinta, California
(760) 777-7000
FAX (760) 777-7101
YTY 2003-04 COMPREHENSIVE ANNUAL FINANCIAL REPORT LETTER OF TRANSMITTAL
We are pleased to present the 2004 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, 2004. 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 fluids 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.
This is the Fourth year of financial statement presentation under the financial and reporting requirements of
Government Accounting Standards Board Pronouncement No. 34 — The New Financial Reporting Model.
The City elected early implementation of the standards in Fiscal Year 2001. In its most elementary terms,
the new model attempts to present the financial position and activities of a government organization on a
basis comparable to a for-profit organization.
0
i
Honorable Mayor, City Council,
and City Manager
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, a list of principal
officials, and awards for excellence in financial reporting. The financial section consists of the audit opinion;
management's discussion and analysis of the financial statements and footnotes, and required supplementary
information. The statistical section includes selected financial and demographic information, generally on a
multi-year basis.
The following governmental agencies that provide services to the citizens of the City of La Quinta have been
excluded from this report because the City does not have financial accountability over these agencies: State of
California and its departments, County of Riverside and its departments; Coachella Valley Association of
Governments, Riverside County Transportation Commission, Riverside County Waste Management District,
Desert Sands Unified School District, County Superintendent of Schools, Coachella Valley Unified School
District, Desert Community College District, Coachella Valley Mosquito and Vector Control District, Coachella
Valley Water District, Sunline Transit Agency, Palm Springs Desert Resorts Convention and Visitors Authority,
and the Desert Regional Resorts Airport Authority.
Bach
The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known
as the Coachella Valley. The City motto is "The Gem of the Desert". The City is governed by a five member
City Council under the Council/Manager form of government. The Mayor is directly elected by the citizens.
The City was originally incorporated in 1982 as a general law City and it became a charter City in November
1996.
Significant one-year demographic data is as follows:
• Population as of January 1, 2003 was 32,522, an increase of 6.8% from 2003.
• Commercial and residential units issued was 1,560, a 73% increase from 2003;
• Taxable Sales of $524 million, a 20.6% increase from 2003;
• Assessed Valuation of $6.333 billion, a 16% increase from 2003; and,
• Hotel Room sales over $39.1 million, a 3% increase from 2003.
The City area includes the La Quinta Resort, several world class golf resorts, quality neighborhoods of single
family and multi -dwelling homes, and light commercial industries. The City has a beautiful Senior Center,
which borders the newly opened Civic Center Campus. The Desert Sands Unified School District and
Coachella Valley Unified School District provide educational opportunities for school-age children in La Quinta.
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Honorable Mayor, City Council,
and City Manager
The City has been experiencing rapid growth in population. During 2003, the population grew 6.8%. 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 2003-2004 is 78. In addition to the 32,522 permanent residents, approximately 12,000
seasonal residents spend three to six months in the City. La Quinta was recently named "the best place to live
for golfing" by the Robb Report, and has been one of the fastest growing cities in Riverside County and
California in recent years.
Services Provided by the Cift
City services can be divided into those services provided directly by City staff and those services contracted out
or provided by other government agencies and organizations.
Direct services provided by City staff in the following areas include:
General Government My Clerk
- Legislative - City Clerk
- City Manager
- Economic Development Community Services
- Personnel Administration
- Recreation
Finance - Senior Center
- Fiscal Services
- Central Services
Building and Safety
- Administration
- Code Compliance
- Animal Control
- Building
- Emergency Services
- Fire
- Civic Center Building
Public Works
- Administration
- Development/Traffic
- Street & Landscape Maintenance
- Construction
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Communijy Development
- Administration
- Planning
- South Coast Air Quality
- Redevelopment
Honorable Mayor, City Council,
and City Manager
Services are also provided to the City and its citizens by contract and by the direct services of other government
agencies and organizations. These services include police and fire protection through the County of Riverside,
library services through the County of Riverside, visitor & tourist information through Palm Springs Desert
Resorts Convention and Visitors Authority, City promotion through the La Quinta Chamber of Commerce, water
and sewer service through the Coachella Valley Water District, electricity service through the Imperial Irrigation
District, refuse collection through Waste Management Company, public transit through Sunline Transit Agency,
and cable service through Time Warner.
Sig pificant Events and Accomplishments
During 2003-04 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
Building permits issued exceeded $282.6 million in valuation for the fiscal year ending June 30, 2004. One
thousand four hundred and six new housing units were built in 2004, and La Quinta's growth continues to be
faster than the average recorded in Riverside County and in the Coachella Valley.
Major retail developments continue to diversify and enhance La Quinta's economic base. The Centre at La
Quinta auto mall site includes three auto dealerships and can accommodate up to nine dealerships, plus 400,000
square feet of retail anchored by a Super Walmart, which opened in 2004; Washington Park, anchored by a
Target also opened in 2004 ,as well as Washington Mutual Bank, Stein Mart; La Quinta Corporate Center,
which contains a fitness center, offices, and a post office site; La Quinta Court, a specialty shopping center with
fine restaurants, offices and a gourmet food market; La Quinta Professional Plaza,, which includes Palm Desert
National Bank, professional offices and restaurants; Jefferson Plaza, anchored by Home Depot, I -Hop, and Jack
in the Box; One Eleven Center, anchored by a future Kohl's Department Store, Staples, Ross Dress 4 Less, and
a Big 5 Sporting goods store; Point Happy, anchored by two restaurants and Bank of America; and Old Town
La Quinta, a 140,000 square foot commercial/retail center recently opened in the Village area.
Several resort -oriented projects which will expand the economic diversity of the City are planned or already
approved, including an Embassy Suites hotel, scheduled to open in early 2005, development of Centre Point, a
50 -acre site at the corner of Miles Avenue and Washington Street which will include a mid -priced Hotel, and a
165,000 square foot medical facility. A residential component is also part of the Centre Point project, with a
neighborhood park.
Quality residential communities, including Trilogy, PGA West, Rancho La Quinta and the Traditions have
increased the assessed valuation of the City, and several other large projects have been approved and are moving
forward including Andalusia and Coral Mountain.
iv
Honorable Mayor, City Council,
and City Manager
Housin
La Quinta has a wide spectrum of housing types and values, ranging from the affordable to exclusive luxury
estates. The median home prices in La Quinta have dramatically increased during FY 03/04. The medianhome
price in La Quinta stands at approximately $3 50,000, which is still lower than averages for San Diego and Los
Angeles Counties. New home construction is now in the $500,000 to $1,000,000 range.
Sales of new and existing homes in La Quinta continue to be amongst the highest volume in the Coachella
Valley as the east valley continues to development at a faster rate than the west valley. New construction has
brought the number of housing units available in the City to 15,942. The 15,942 units consist of 13,164
detached single family residences, 1,448 attached single family residences, 1,071 multi family residences, and
259 mobile homes.
Tourism
La Quinta is well known for its many championship golf courses. The City is home to 21 championship courses,
and many more are in the planning or development stages. In addition to quantity, La Quinta has some of the
highest rated courses in the world of golf. Various golf tournaments, including the prestigious Bob Hope
Chrysler Classic, are exposing La Quinta internationally as a quality destination and golf resort area. La
Quinta's Trilogy Golf Club will be hosting the internationally televised Skins Game in 2004.
The City acquired 525 acres of previously undeveloped property adjacent to Jefferson Street and Avenue 52 in
2002. This project, SilverRock Resort, will include two 18 -hole golf courses, hiking trails, residential casita
units, as well as two or three hotels and commercial areas for retail and restaurants. The first golf course, an
Arnold Palmer design will open in early 2005 and the City is actively marketing the surrounding property for
hotel and timeshare developers. The first course will be the host golf course for the Bob Hope Chrysler Classic
in 2006.
The nationally recognized La Quinta Arts Festival attracts many visitors from around the country each year to
the City of La Quinta and the Coachella Valley.
Hotel room sales in La Quinta enjoyed dramatic growth to a record $39.1 million in fiscal year 2003/04. The La
Quinta Hotel, the largest destination resort in the Coachella Valley, was the largest contributor to this increase.
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Honorable Mayor, City Council,
and City Manager
Capital Improvements
The City completed $43.2 million in capital improvements during fiscal year 03-04, up from $16 million in
fiscal year 2002/03. Projects completed or nearing completion include Phase 1 of SilverRock Resort, the La
Quinta Park, the third fire station, Jefferson Street widening Phase II property acquisition, the Hammer Property
acquisition, completion of the Mira Flores Senior Apartment Project.
Several significant projects which are continuing, planned or already approved include Civic Center expansion,
the construction of the new City library, widening the Eisenhower Dr. bridge and landscape improvements to
Washington Street and the Vista Dunes Mobile Home Project.
The City's Capital Improvement Program (CIP) continues to increase to meet the demands of growth, and totals
$10.5 million for fiscal year 2004-2005. This major commitment in infrastructure will continue to provide for
both the current and future growth that the City has experienced.
The City has several significant community facility projects underway. A second skateboard park is nearing
completion and the 18 acre La Quinta Park has been completed. This park hosts a variety of community
amenities, including lighted soccer fields, ball fields, a basketball court, a children's in service area and space
for the future skateboard park previously mentioned. Development of the City's first municipal golf course,
SilverRock Resort, will significantly add to amenities available to residents of La Quinta. SilverRock will open
early in 2005.
The Redevelopment Agency completed a $26.4 million taxable bond issue to be used for the development of the
SilverRock resort while the La Quinta Financing Authority issued $90 million in bonds to provide low and
moderate housing opportunities.
Citv Operations
The. following is a partial listing of the accomplishments for the citizens of La Quinta for fiscal year 2003-2004:
Continued development of GIS database for city-wide planning, obtained aerial photos of City boundaries and
planning areas, and developed enhanced mapping capabilities, including public safety analysis;
Continued features on City web page, making the, municipal code, maps and permit detail available to the
general community;
Implemented economic development marketing program to support local businesses;
Applied for, and received, several grant awards for community projects to enhance public safety, environmental
issues, and improved traffic systems;
Improved on the Optical Imaging system for document storage and record retrieval, including scanning and
indexing existing improvement plans into digital archives;
Received awards in excellence for financial and budget reports;
Implemented upgrades in management information services, including additional servers, enhanced firewall
security, and improvements in City web site;
Implementation of new software, integrating financial records and departmental operations for improved
efficiency and information retrieval;
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Honorable Mayor, City Council,
and City Manager
Continued expansion of recreation and Senior Center programs available for community education, leisure
enrichment, and health;
Implemented special enforcement programs for improved public safety and neighborhood security;
Construction of the City's third fire station and participated in emergency management training;
Negotiated development agreements to provide for quality housing in several projects, including very low and
low income seniors and low and moderate income family households;
Continued implementation of the community Emergency Notification System, and improved the City's
Emergency preparedness resources.
Future developments
Future developments include: continued commercial development along the Highway 111 corridor and
residential growth in the southern part of the City, redevelopment financed property development on Avenue 48,
Eisenhower Street and Calle Tampico. The City has budgeted funds to widen Highway 111 to its ultimate width
in anticipation of the increased commercial activity along the corridor.
Construction of the Library is in the pre -construction stage and will be completed in 2005. The City will
continue coordination with commercial development, ensuring quality enhancements in both new and existing
projects, and continue development of resort, hotel and destination tourist opportunities.
Financial Information
GASB 34 requires a separate ".matter of fact" discussion o f the City's financial condition that canbe found in the
required supplementary information section entitled "Management Discussion and Analysis (MDA)".
The operating results for the City of La Quinta for FY 2003/04 were very good and our financial condition is the
strongest since incorporation.
The City will be faced with future funding challenges that will require a dedicated effort to fulfill our economic
development plan to garner new and additional revenues. Management believes that the following items will
impact future budgets of the City of La Quinta that will have to be addressed with future revenues or the use of
our reserves:
The need for additional police services — As the population grows the City will be faced with the need to add
additional public safety officers.
The need for additional fire services —'Coupled with the growth in population and the desire by fire professionals
to have three and four person crews, the City will need to address the need for additional fire service resources.
The need to fund additional landscaping costs — As a result of Proposition 218, the City has been limited on the
use of City -Wide Lighting and Landscape Assessment District funding for the maintenance of landscaping in the
City. The City has continued to add landscaped street medians and developed park facilities that will require
additional funds for maintenance.
The need to pay for the operations of additional public facilities — In the five year Capital Improvement Plan the
City has plans to build a municipal library and expand City Hall.
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Honorable Mayor, City Council,
and City Manager
The following paragraphs outline several of the major polices of the City and attempt to supplement, not
supplant, the MD&A which can be found later in this report.
Management of the City of La Quinta is responsible for establishing and maintaining a framework of internal
controls designed to ensure that assets of the City are protected from loss, theft, or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity with
generally accepted accounting principles. The framework of internal controls is designed to provide reasonable,
but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that:
(1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and
benefits requires estimates and judgments by management.
Accounting Controls - The City of La Quinta's accounting system is designed upon the following principles:
In the public sector, a city government maintains a variety of "funds" that provide the basis for separately
recording the financial data related to a specific activity. A fund is an accounting entity with a complete set of
self -balancing accounting records. Each fund has been established because of some restriction on the use of the
resources received by that fund. In the private sector, a corporation may have many subsidiaries that make up
the parent corporation. Likewise in the public sector, all of the funds make up the complete financial resources
of the City of La Quinta. This report includes the transactions of all entities over which the City Council of the
City of La Quinta has authority (as defined by the Governmental Accounting Standards Board).
The City's accounting system operates on a modified accrual basis of accounting for all governmental and
agency type funds. Governmental funds include the General, Special Revenue, Debt Service, and Capital
Projects Funds. Under the modified accrual basis of accounting, revenues are recorded when received in cash or
accrued when they are both measurable and collectible within the accounting period or soon enough after the end
of the period to pay liabilities of the period. Expenditures, other than interest or long term debt, are recorded
when liabilities are incurred. At year end, the City has prepared the required entries necessary to report the City
financial position and activities on an accrual basis of accounting which recognizes revenues when earned and
expenses when incurred.
The City maintains two Internal Service Funds and no Enterprise Funds. These types of funds use the accrual
basis of accounting. Revenues are recorded when earned and expenses when incurred.
In addition to maintaining funds to record accounting transactions, internal controls exist within the accounting
system to ensure the safety of.assets from misappropriation, unauthorized use or disposition, and to maintain the
accuracy of financial record keeping. These internal controls must be established consistent with sound
management practices based upon the cost/benefit of the controls imposed. The cost of a control should not be
excessive to its derived benefit as viewed by City management. The internal controls in existence at the City of
La Quinta are sufficient to ensure, in all material respects, both the safety of the City's assets and the accuracy of
the financial record keeping system.
The City began implementation of new integrated financial accounting software, to improve reporting
capabilities and enhance internal controls in all areas of financial records.
Honorable Mayor, City Council,
and City Manager
BudgetW Controls - The City Manager submits a preliminary budget to the City Council before each fiscal year.
A public meeting is 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 year's appropriations.
Each Department receives a monthly budget -to -actual expenditure report. In addition, each department can
access on-line budgetary data from the financial information system available throughout the City-wide
computer network.
The City Council is also given an Executive level Summary of Revenues and Expenditures on a monthly basis
Gartzt t i3mit -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 cityreaches 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.
Risk Management - The California Joint Powers Insurance Authority (CJPIA) was formed in 1997 under a joint
exercise of powers agreement between local governments for the purpose of jointly funding programs of
insurance under Section 990 of the California Government Code. The Authority is governed by a Board of
'Directors, which is composed of one director from each member organization which maintains membership in
the Liability program. The City of La Quinia j oined the CJPIA in order to achieve long-term premium stability.
Each member city must remain in the pool for three years. Each year, the self-insured pool undergoes a
retrospective deposit computation based on current incurred loss valuations. Appropriate adjustments are then
made over a three-year period. The likelihood of the need for excess premiums is remote given the claims
history of the cities involved and the length of time necessary to settle large claims. Generally, individual claims
in excess of the self-insured amount for workers compensation and general liability fall under the insurance
policies purchased by the City. The CJPIA provides for liability insurance coverage with a maximum of
$50,000,000 per claim. All reserves are invested and earnings are credited to members in proportion to their
equity. At present, the CJPIA has invested reserves in excess of $100,000,000.
City Retirement Costs - The City is a member of the California Public Employers Retirement System (PERS).
Employer contribution rates are reviewed and adjusted annually to achieve full funding for retirement benefits by
the year 2011.
Cash Management - The City Council annually adopts an investment policy that is intended to provide the
highest investment return with the maximum security while meeting the daily cash flow demands of the City and
conforming to all state and local statutes governing the investment of public funds. At all times there was
compliance with the City's investment policy, and safety and liquidity objectives were placed above rates of
return considerations in making deposits and investments.
ix
Honorable Mayor, City Council,
and City Manager
Certificate of Award for outstanding Financial Reporting
The California Society of Municipal Finance Officers (CSMFO) and the Government Financial Officers
Association (GFOA) both present an annual Certificate of Award for Outstanding Financial Reporting. We
believe that our current report conforms to their program requirements and we are submitting this report to their
organizations for considetation. If received, the Certificates are valid for one year only. The City has received
the GFOA and CSMFO awards in prior years and hope to continue to receive these awards.
Acknowledgments
This report could not have been accomplished without the dedicated services of the Finance Department staff.
Recognition is given to Vianka Orrantia, Secretary for her report preparation skills, to Sharon Christensen,
Misaela Mendoza, Diane Martin and Pat Parker for their diligence in processing most of the transactions
reported upon in the financial section of this report, and to Mason Lord for his diligence in maintaining the
information system. Again, we also appreciate the City Manager and City Council for providing the resources
necessary to prepare this report and for their role in preserving the City's frame work of internal controls and
again wish to express our appreciate for 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,
John M. Falconer
Finance Director and Treasurer
X
City of La Quinta
Directory of Officials
June 30, 2004
CITY COUNCIL
Don Adolph, Mayor
Stanley Sniff, Mayor Pro Tem
Terry Henderson, Council Member
Lee Osborne, Council Member
Ronald Perkins, Council Member
ADMINISTRATION
Thomas P. Genovese, City Manager
Mark Weiss, Assistant City Manager
John M. Falconer, Finance Director
Tom Hartung, Building & Safety Director
Jerry Herman, Community Development Director
Kathy Jenson, City Attorney
Dodie Horvitz, Community Services Director
June Greek, City Clerk
Tim Jonasson, Public Works Director/City Engineer
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CONFiADAND CERTIFIED PUBLIC ACCOUNTANTS
DRIVE, SUITE
ASSOCIATES, L.L.P. 2301 DUPONT CALIFORNIA 926 00
(949) 474-2020
Fax (949) 263-5520
The Honorable Mayor and City Council
City of La Quinta.
La Quinta, California
Independent Auditors' Report
We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the City of La Quinta, California as
of and for the year ended June 30, 2004, which collectively comprise of the City's basic financial
statements, as listed in the accompanying table of contents. These financial statements are the
responsibility of the management of the City of La Quinta, California. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the City of La Quinta, California, as of June 30, 2004,
and the respective changes in financial position and cash flows, where applicable, of the City of
La Quinta, California and the respective budgetary comparison information for the general fund
and major special revenue funds of the City for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
The information identified in the accompanying table of contents as management's discussion
and analysis and required supplementary information is not a required part of the basic financial
statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the City of La Quinta's basic financial statements. The introductory section
combining and individual nonmajor fund financial statements and statistical schedules listed in
the table of contents are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The combining and individual nonmajor fund financial
statements have been subjected to the auditing procedures applied in the audit of the basic
financial statements, and in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The introductory section and statistical tables have
not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
The Honorable Mayor and City Council
City of La Quinta
La Quinta, California
In accordance with Government Auditing Standards, we have also issued a report dated
August 20, 2004 on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the results of our
audit.
August 20, 2004
Management Discussion and Analysis
The Management Discussion and Analysis (MDA) is intended to provide the reader of the
statements with a concise analysis of the financial results and financial position of the City of La
Quinta.
The New Reporting Model
As mentioned in the prior year MDA, the impact of the new reporting model on the financial
statements constitutes the biggest change in the way governmental activities have previously been
reported. We have to return to the original "blue book" in the mid 1980's to recall such a major
change in the accounting and reporting of governmental activities. Overall, we believe that from
a financial reporting standpoint, the preparation of this document continues to be one of the most
challenging for the governmental accounting profession. As will be discussed later in detail, most
discussion on the new reporting model has focused on infrastructure reporting. This year a major
effort was needed to update the infrastructure reporting for additions and deletions during the
year.
Two new statements have been presented entitled the Statement of Net Assets and Statement of
Activities. The purpose of the Statement of Net Assets is to report on the financial and capital
resources for all governmental funds in a single statement. The purpose of the Statement of
Activities is to report on the activity of the government's operations and is presented in a format
that reports the net (expense)/revenue of its various functions.
In addition, the Governmental Funds Balance Sheet and Statement of Revenues, Expenditures and
Changes in Fund Balances have been classified into major and non -major funds. These major and
non -major funds are determined based upon criteria set forth by the GASB. The GASB believed
that this major and non -major classification allows the reader to review the significant funds in
one report rather than have the reader determine what is a major fund and what is non -major.
Executive Summary
As was the case last year, the overall financial results of the City of La Quinta for FY 2003/04
were very good and our financial condition is the strongest since incorporation. Our financial
results were stronger than the prior year despite lower interest income and higher costs and the
City was generally able to see increases in its reserves. Offsetting our lower interest income and
higher costs were increases in transient occupancy, sales tax collections, and permits and fees. In
addition, with our higher population, we were able to collect more in State subventions; however,
as mentioned earlier, the City incurred higher costs for servicing the larger population.
As a fast growing municipality, the City of La Quinta has been able to add to its general reserves.
The future challenge will be to ensure that these reserves and the on-going taxes and fees will
meet the demands for public services that a community at build -out will require.
3
BacklZround
In this MDA section, the Finance Director departs from the past, which required a "just present
the reader with the facts" approach and enters into the future with a requirement to "tell it like it
is
The analysis also is required to convey the financial results with an element of subjectivity. This
subjectivity is based upon the Finance Director's knowledge of the City's "business cycle" and
the possible economic factors that may impact the City. The Government Accounting Standards
Board is the rule making body that promulgates or sets the accounting rules. This rule making
body is slowly but surely moving toward a standard of accounting based upon the full accrual
basis of accounting, which is required for for-profit companies.
To accomplish this move toward a full accrual basis of accounting, many of the government
accounting software providers are incorporating features that will generate two separate sets of
statements. One set is produced on the modified accrual basis of accounting and the other on the
full accrual basis of accounting. The intent of this software is to capture the data throughout the
year necessary to push a button at the end of the year and print out a statement based upon the
modified accrual basis of accounting and another statement based upon the full accrual basis of
accounting.
The City accounting system is based upon the modified basis of accounting throughout the year.
Once a year, at year-end, the City prepares memo entries to convert the modified basis of
accounting throughout the year to the full accrual basis of accounting. This conversion is
prepared on a spreadsheet program and is given to our outside auditors. No formal entries are
entered into the accounting system to convert to the accrual basis of accounting. Management
believes this less formal conversion process is simpler, more flexible and less costly for the City
of La Quinta.
You may be asking yourself how significant is the change in the two reporting methods?
The following table summarizes the differences for FY 03/04:
Description Modified Accrual
Accrual
Change
Assets 330,178,668
605,173,755
274,995,087
Liabilities 150,209,978
266,528,961
116,318,983
Revenues 88,623,817
63,710,468
(24,913,349)
Expenditures 110,757,923
39,212,009
(71,545,914)
Fund Balance/Net Assets 179,968,690
338,644,794
158,676,104
Revenues over (under) expenditures 74,310,894
24,498,459
1 (49,812,435)
It is apparent that the change in accounting methods dramatically changes the way the reader of
the financial statements interprets the financial condition and operations of the City. Management
will attempt to present the reader with an analysis that is simpler to understand and draws
distinctions between the two accounting methods where possible.
The GASB requires that governmental agencies provide two years worth of financial information
so that the reader will be able to draw comparisons on the results of operations and the financial
position from year to year.
4
Assets
The following chart lists a condensed Statement of Net Assets for the fiscal year ending June 30,
2004 and 2003. Total net assets increased $24.5 million from the previous year.
Current and other assets
Capital assets
Total assets
Current and other liabilities
Long term liabilities
Total liabilities
Net assets
Investment in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
CITY OF LA QUINTA
Statement of Net Assets
Governmental Governmental Governmental
Activities Activities Activities
2004 2003 Changes
206,488,111
129,398,242
77,089,869
398,685,644
359,245,168
39,440,476
605,173,755
488,643,410
116,530,345
17,224,823 14,609,508 2,615,315
249,304,138 159,887,567 89,416,571
266,528,961 174,497,075 92,031,886
249,059,500
225,818,022
23,241,478
44,415,966
40,038,313
4,377,653
45,169,328
48,290,000
(3,120,672)
338,644,794
314,146,335
24,498,459
Employees
One major asset of the City of La Quinta is its employees. While not quantified on the books, the
City has 78 authorized full time equivalent positions to provide the services required by the
community.
Cash and Investments
The City of La Quinta has cash and investments on hand to meet both immediate and long-term
needs. The City Finance Director serves as the Treasurer and is appointed by the City Manager.
The City has a five member Investment Advisory Board. It is appointed by the City Council and
meets monthly to review the Treasurer's Report and provide valuable assistance to the Treasurer
on current trends and topics in this area, as well as annually reviewing the Investment Policy.
The City has a conservative investment policy, which is more restrictive than the policy
limitations set forth in 53601 of the Government Code of the State of California. The Treasurer is
required to prepare a monthly Treasurer's Report that certifies that he/she believes that the City
has, to the best of its ability, the cash to meet its obligations for the next six months. During FY
03/04, the City has met this six-month liquidity requirement. In addition, the City has a two-year
(730 -day) limitation on the maximum maturity of our investments and has a buy/hold investment
strategy, which does not promote actively selling securities before their maturity, except for
liquidity purposes.
During FY 03/04, the City did not sell an investment before maturity. Therefore, the financial
statements do not report any gains or losses on investments. The following table lists the earnings
rates and average maturity of the portfolio:
Summary of FY 03/04 Interest Rates/Earnings
Month
6 Month
Benchmark (%)
Average
Maturity
Days
Pool
Interest
Rate (%)
Fiscal Agent
Interest
Rate (%)
Total
Rate
All Earnings (%)
July 2003
0.98%
131
1.66%
0.52%
1.43%
August
1.06%
110
1.65%
0.45%
1.35%
September
1.01%
80
1.65%
0.49%
1.26%
October
1.04%
121
1.59%
0.48%
1.36%
November
1.03%
98
1.64%
0.48%
1.38%
December
0.99%
117
1.67%
0.57%
1.41%
January 2004
1.00%
140
1.58%
0.30%
1.37%
February
1.01%
120
1.65%
0.30%
1.38%
March
1.01%
155
1.50%
0.50%
1.33%
April
1.19%
137
1.50%
0.50%
1.33%
May
1.38%
137
1.54%
0.50%
1.36%
June 2004
1.73%
234
1.69%
0.47%
1.62%
Average FY 03/04
1.12%
132
1.61%
0.46%
1.38%
Average FY 02/03
1.29%
125
2.10%
0.75%
1.73%
Ending Cash balances
Interest Earnings
June 2004 June 2003
$187,392,966 $113,060,020
$1,738,505 $1,353,868
During FY 03/04, interest rates dropped throughout the year across the yield curve. The
Treasurer exceeded the benchmark 6 month Treasury Bill rate in 10 of the 12 twelve months and
overall for the year by an average of 26 basis points. Interest earned on all funds totaled $1.7
million for FY 03/04 versus $1.4 million for FY 02/03 and the total portfolio at June 30, 2004 was
$187.4 million versus $113.0 million for the previous year.
Receivables/Advances to Other Funds
The City of La Quinta does not have large receivable balances. We do not have any enterprise
activities such as a water or sewer department, which typically generate receivable balances.
One of the interesting impacts of GASB 34 is the accounting for advances to and from other funds
which will be discussed in greater depth under the Advances from other funds section of the
MDA. The City has advanced funds to the City Redevelopment Agency to promote economic
activities within its boundary areas. The advances have no specified due date and accrue interest
between 7 and 10% per year. The intent is to repay these advances with interest before the
expiration of the Redevelopment Project Area Plan in approximately thirty years. In addition, an
outstanding advance from the Redevelopment Agency to the Park and Recreation Development
Impact Fee Fund has been made to accelerate Park development. The total outstanding balances
between the General Fund and the Redevelopment Agency as of June 30, 2004 and 2003 are
$28,671,083 and $21,081,322, respectively. The major increase included a $5.8 million advance
to fund purchase of a portion of property at Dune Palms and Highway 111. The total outstanding
balances between the Redevelopment Agency and the Park & Recreation Capital Fund as of June
30, 2004 and 2003 are $4,075,463 and $4,921,720, respectively. The decrease included
repayment of the advance used for the construction of the La Quinta Park from available Park and
Recreation funds. In FY 03/04 the Redevelopment Agency advanced funds for the construction
6
of a third fire station on Adams St. The total outstanding balance between the Redevelopment
Agency and the Fire Facility Capital Fund as of June 30, 2004 is $1,260,695. Under GASB 34
these advances to and from other funds have been eliminated from the Statement of Net Assets.
Capital Assets
The most debated topic of the new reporting model is the recording of fixed assets including the
City infrastructure assets and accumulated depreciation. In some respects the years following the
first year of implementing GASB 34 were harder than the first year. In the first year the City
relied on a professional study to value the infrastructure. During FY 03/04, the City continued to
track the addition and deletion of fixed assets. These additions and deletions took the form of
developer contributions, and completed Capital Improvement Projects. The primary purpose of
including infrastructure assets in the financial statements is to report the total amount of
improvements and the amount that these assets have been depreciated. At year-end, General
Fixed Assets were 25% depreciated at year end compared to 33% in the previous year, Internal
Service assets were 57% depreciated compared to 61% last year and infrastructure improvements
were 56% depreciated compared to 61% in the prior year. The lower depreciation percentage is
indicative of the change in the capitalization minimum amount being raised from $500 to $5,000
to be in conformity with General Accounting Standards Board recommendations. This increase in
the capitalization policy generally resulted in the removal of fully depreciated assets.
The City has two internal service funds — equipment replacement and information technology.
The Equipment Replacement Fund is for the replacement of vehicles, and major capital items
such as the roofs and air conditioners in the City Hall and Senior Center. The Information
Technology fund is for the replacement of computers and related equipment and to charge
departments for their fair share of computer related services. In addition to the general fixed
assets, such as buildings, parks, computers and internal service assets, the City has included its
infrastructure assets in the Statement of Net Assets. Infrastructure assets included in the
Statement of Net Assets were City maintained streets, street medians, curb and gutter, traffic
signals, sidewalks, bridges, artwork, sound walls, bike paths, storm drains and retention basins.
Infrastructure assets not included in the Statement of Net Assets were the construction costs of
State Highway 111, private streets — generally behind gates, and public water, sewer, electricity,
gas and cable utilities maintained by others. Infrastructure assets, except for land, have been
depreciated to reflect a net infrastructure amount. In addition to the fixed assets and infrastructure
assets, capital assets also include construction in progress. Under the modified accrual basis of
accounting, the costs of these construction projects have previously been expenditures and not
reported in the Statement of Net Assets. Under the new reporting model, these costs have been
reported in the Statement of Assets. Projects still in progress at year-end included the third fire
station, SilverRock Resort, Assessment District 2000-1 improvements including the Village, the
Civic Center Project and the Vista Dunes Mobile Home Park project. The following chart details
the fixed assets, infrastructure assets, and construction in progress as of the end of the fiscal year:
CITY OF LA QUINTA
Fixed Assets and Construction in Progress
Liabilities
The City of La Quinta has incurred both short and long term debt. Most readers are familiar with
accounts payable, accrued salary, payroll taxes and developer deposits, while others may be
familiar with advances from other funds and bonds payable. The City of La Quinta is current in
meeting its short and long-term commitments and there is no known violation of any bond
indenture covenant. In addition, all bonds have been insured and carry a "AAA" rating by a
major rating agency. During the fiscal year, the City did not issue new debt; however, the
Redevelopment Agency issued $26.4 million in taxable tax increment financing to be used toward
the SilverRock project and the Financing Authority issued $90 million debt for housing purposes.
Of the $90 million debt issue, approximately $20 million was used to retire the outstanding 1995
Redevelopment Agency Housing bonds and the balance net of issue costs used for future housing
projects. The Financing Authority bond issue was completed in the last week of June 2004 which
is the primary reason for the increase in cash balances at year end. At the RDA's request, they
2004
Accumulated
Depreciated
Type
Life
Total
Depreciation
Remaining
Percent
ears
Fixed Assets
Land
N/A
73,505,659
N/A
$73,505,659
25.28%
General Fixed Assets
5-30
24,912,497
6,297,306
18,615,191
56.78%
Internal Service Fixed Assets
3-15
2,572,807
1,460,883
1,111,924
100,990,963
7,758,189
93,232,774
Total Fixed Assets
Infrastructure Assets
Right of Way (ROW)
N/A
234,280,023
N/A
234,280,023
Art in Public Places
N/A
1,640,039
N/A
1,640,039
235,920,062
N/A
235,920,062
Subtotal
Street Pavement
20-25
54,287,843
38,725,874
15,561,969
Curbs/Gutters
50
7,481,027
2,831,381
4,649,646
Sidewalks
20
6,173,436
4,641,537
1,531,899
Median
50
7,863,019
1,687,903
6,175,116
Parking Medians
50
720,462
7,205
713,257
Bridges
35
10,152,665
2,362,856
7,789,809
Traffic Signals
20
4,543,605
1,640,556
2,903,049
Bike Paths
20
642,304
296,145
346,159
Sound Wall
20
189,394
17,720
171,674
Retention Basin
10
957,019
876,503
80,516
Storm Drains
50
2,028,035
351,144
1,676,891
Subtotal
95,038,809
53,438,824
41,599,985
56.23%
Total Infrastructure Assets
$330,958,871
$53,438,824
$277,520,047
Construction in Progress
27,932,823
Total Capital Assets, net
$398,685,644
Liabilities
The City of La Quinta has incurred both short and long term debt. Most readers are familiar with
accounts payable, accrued salary, payroll taxes and developer deposits, while others may be
familiar with advances from other funds and bonds payable. The City of La Quinta is current in
meeting its short and long-term commitments and there is no known violation of any bond
indenture covenant. In addition, all bonds have been insured and carry a "AAA" rating by a
major rating agency. During the fiscal year, the City did not issue new debt; however, the
Redevelopment Agency issued $26.4 million in taxable tax increment financing to be used toward
the SilverRock project and the Financing Authority issued $90 million debt for housing purposes.
Of the $90 million debt issue, approximately $20 million was used to retire the outstanding 1995
Redevelopment Agency Housing bonds and the balance net of issue costs used for future housing
projects. The Financing Authority bond issue was completed in the last week of June 2004 which
is the primary reason for the increase in cash balances at year end. At the RDA's request, they
asked Standard and Poors to rate Project Area 1 on a stand-alone basis, which is without bond
insurance, and are pleased that we have maintained our "A" rating. Similar stand-alone ratings
for the City of La Quinta, RDA Project Area 2 and the Financing Authority are not available.
Advances From Other Fund
The General Fund has advanced funds to both the Redevelopment Project Area 1 and 2 Debt
Service Funds. The City created the La Quinta Redevelopment Agency (RDA) and its two
project areas in accordance with State law to promote economic activities, remove blight and
provide low and moderate housing to its residents using property taxes generated in each of the
Project Areas. The Redevelopment Areas were created to keep property tax revenues generated
in its boundaries for projects in the project areas and to be able to accelerate projects by issuing
bonds and incurring other debt. Examples of the projects funded to date include flood control
projects at the top of the Cove, and resurfacing of street, curb, and gutter in the Cove and
Westward Ho areas. These types of projects could not have been accomplished without the use of
advances and bonds. As of June 30, 2004 and 2003, the City of La Quinta has advanced the RDA
Project Debt Service Area 1 $12,335,283 and $11,503,322, respectively and Debt Service Project
Area 2 $16,335,800 and $9,578,000, respectively. The advances carry an interest rate of between
7-10% with no specified repayment date.
Since the RDA Board is comprised of the City Council, GASB requires that the activities of the
RDA be included with the activities of the City. In the past these advances were recorded in the
General Long Term Debt Group of Accounts. Under the new reporting model these advances
have been recorded as liabilities in the individual fund statements. As a result of this accounting
change, the Debt Service Area 2 fund has a negative fund balance of $ (11,104,297) as of June 30,
2004 compared to a fund deficit as of June 30, 2003 of $ (6,182,506). As mentioned previously
the General Fund advanced the Agency $5.8 million to purchase a piece of property at Dune
Palms Road and Highway 111. This advance agreement requires the repayment of the advance
from available proceed, if the property is sold at a future date. While it is preferable to have funds
with positive balances, it should be noted that this negative balance was a result of the City
advances. The outstanding advances have no specified re -payment date and it is not the intent of
Management to request repayment of the advance in the near future. Rather, Management will
seek future repayments from the debt service funds when fund balances are available, which
would be sometime before the project areas expire — in approximately 30 years.
The La Quinta Redevelopment Agency has advanced funds to the Capital Project — Park and
Recreation Fund to construct the Civic Center Campus and the La Quinta Park. The advances
were made to accelerate the construction of these facilities which would have not been
constructed to meet the growing needs of the community. During FY 03/04, the original advance
of $1.1 million advance for the construction of the La Quinta Park from RDA Project Area 2 was
repaid. The advances carry an interest rate that fluctuates with the average earnings of the
investment pool and were $4,075,463 for FY 03/04 and $4,921,720 for FY 02/03. This advance
has no specified re -payment date.
The La Quinta Redevelopment Agency has advanced funds to the Capital Project — Fire Facilities
Fund to construct the third fire station on Adams Street. The advances were made to accelerate
the construction of this facility which would have not been constructed to meet the growing needs
of the community. The advances carry an interest rate that fluctuates with the average earnings of
the investment pool and were $1,260,695 for FY 03/04. This advance has no specified re -payment
0
date. Under GASB 34 these advances to and from other funds have been eliminated from the
Statement of Net Assets.
Long Tenn Liabilities
Long term liabilities consist of notes, bonds and pass-through agreements that have been
separated into the amount due in the next year and the amount due beyond.
In order to accelerate capital or housing projects, the City and RDA have issued bonds. These
bonds have also been insured to take advantage of lower debt service costs and provide the
investor with an added comfort level. In addition, as with a home mortgage, we have refunded
several of our bond issues to take advantage of lower interest rates, which in turn has resulted in
lower debt service costs. As previously discussed the RDA issued $26.4 million in bonds during
FY 03/04 and the Financing Authority issued $90 million of housing bonds, however, no bonds
were issued in FY 02/03.
The Statement of Net Assets has a long-term liability amount due within one year of $5,016,762
and an amount due in more than one year of $249,304,138 for FY 03/04, as compared to
$4,021,110 due within one year and $159,887,567 from FY 02/03.
NET ASSETS AND INTERNAL SERVICE FUNDS
The objective of the Statement of Net Assets is to provide a consolidated summary of the City's
assets, liabilities and net assets that reflects the City's fiscal worth and liquidity as a whole. Over
time the increases or decreases in total net assets will reflect the health of the City. In order to
report the unrestricted net assets of the City, the City must subtract from its assets related
liabilities, net investments in capital assets and restricted net assets. Under the new reporting
model, the total unrestricted net assets of the City of La Quinta, RDA and Financing Authority is
$45,169,328 as reported in the Statement of Net Assets. This is a decrease of $3,120,672 from
last year. As in the past, Management has elected, as detailed in the basic financial statements, to
further restrict and designate general fund balances that have not been reflected in the new
Statement of Net Assets. Management believes that these restrictions and designations reflect the
Council's desire to set aside funds to meet the requirements of a growing City and to be available
for future projects.
The total equity and other credits of the City is $338,644,794 of which $249,059,500 consists of
capital assets, net of the related debt that was used in acquisition. $44,415,966 consists of
restrictions placed upon special revenue, capital projects, and debt service funds leaving total
unrestricted net assets of $45,169,328.
The City has two internal service funds — Equipment Replacement and Information Technology
Funds that primarily receive its revenues from charges for services from other City departments.
Under the new reporting model, the assets and liabilities of these internal service funds have been
included in the Statement of Net Assets.
ACTIVITIES
The objective of the Statement of Activities is to report the full cost of providing government
services for that year. The format also permits the reader to ascertain the extent to which each
function is either self-financing or draws from the general funds of the government.
10
The following chart lists a condensed version of the Changes in Net Assets for the fiscal years
ending June 30, 2004 and 2003.
CITY OF LA QUINTA
Changes in Net Assets
2004 2003 Change
Revenues
Program revenues
Charges for services $
7,071,404
5,627,924
1,443,480
Operating grants and
1,799,503
1,797,031
2,472
contributions
Capital grants
12,090,143
5,160,405
6,929,738
General revenues
Taxes
37,913,150
32,764,817
5,148,333
Investment income
1,738,505
1,353,868
384,637
Motor Vehicle in lieu
1,608,151
1,768,091
(159,940)
Gain (loss) on sale of
capital assets
-
-
Other
1,489,612
513,876
975,736
Total revenues
63,710,468
48,986,012
14,724,456
Expenses
General government
4,319,778
3,203,462
1,116,316
Public safety
10,256,463
8,547,005
1,709,458
Community services
1,446,999
1,321,825
125,174
Planning and development
7,526,977
19,083,860
(11,556,883)
Public works
6,003,013
6,785,759
(782,746)
Interest
9,658,779
8,555,401
1,103,378
Total expenses
39,212,009
47,497,312
(8,285,303)
Excess (deficiency) $
2424982459
1,488,700
23,009,759
Net assets - 6/30/2002
312,657,635
Net assets - 6/30/2003
314,146,335
314,146,335
Net assets - 6/30/2004 $
338,644,794
11
The following graph depicts the revenue by source for governmental activities for FY 03/04
which totaled $65,644,292.
Revenues by Source -Governmental Activities
lb
O
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
The Statement of Activities starts with functional expenses, subtracts out functional revenues to
arrive at a net number for each function, and then subtracts out all general revenues to arrive at
the net change in net assets for the reporting period.
The following graph depicts the expenses and program revenues for governmental activities for
FY 03/04:
16, 000, 000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
Expenses and Program Revenues - Governmental
Activities �Q�s
.rb . o
(o
G +n
fD 7
7 (D
(D
a
C 0 NCO
X 7
3 j
m
CD
(A N C
ma y.
N N (D N
CL N
o Expenditures m Program revenues
12
The functional revenue for FY 03/04 was $65,644,292 versus $48,986,012 for FY 02/03. The
increase can be attributed to an increase in capital grants from the prior year related to
construction projects, increased property taxes and one time charges for services.
The functional expenses for FY 03/04 were $41,145,833 versus $47,497,312 for FY 02/03. There
was an overall decrease which was attributable to less Community and Development
expenditures. In FY 02/03, the RDA made a large investment in the Miraflores Housing and
Senior Apartment Projects. Increases can be attributed to greater debt service, and public safety
expenses. The debt service increases are a result of a full year of the FY 01/02 bond issues debt
service being due and the new $26.4 bond issue resulted in higher debt service payments. The
public safety increases are a result of higher police service levels/costs and fire service
levels/costs. The net excess increased $25,009,759 from FY 02/03 as a result of higher revenues
and lower expenses from the prior year.
As mentioned earlier, this net increase of $24,498,459 reported in the Statement of Activities
compares to a net increase of $74,310,894 under the modified accrual basis of accounting. The
primary reason for the differences between the two amounts is the net increase in the
capitalization of $23.2 million in infrastructure improvements.
REVENUES
General Fund Revenues
For the second year in a row, Transient Occupancy Taxes have returned to the FY 00/01 levels
and were just over $4 million, while sales taxes increased from $4.3 million in FY 02/03 to $5.2
million in FY 03/04. The City has been seen by homebuilders and by homebuyers as a suitable
place to build and live. Homebuilders have seen La Quinta as a place to build homes because of
the availability of land and labor which has resulted in greater than budgeted development fees
and charges for services. Homebuyers have seen La Quinta as a place to buy because of lower
interest rates and good home values which has resulted in greater property taxes, sales taxes and
motor vehicle registration taxes. As a result of the increased population, and because of available
land along the Highway 111 corridor, the City is experiencing retail growth that has added sales
taxes to the City. It should be noted that the area north of Highway 111 has been fully developed
with new home development generally occurring in the central and recently annexed southern
portions of the City. The City is home to a world class destination resort which continues to
generate transient occupancy taxes. Compared to last year, taxes increased by $1.6 million, with
increases in property taxes, sales taxes, transient occupancy taxes, franchise taxes, document
transfer taxes. Licenses and permits increased $1.1 million from FY 02/03 due to the strong
building demand, intergovernmental revenues increased $500,000 through greater fire service
protection draws, investment income increased $440,000 to $2.3 million based upon higher
invested cash balances and higher outstanding advances from the RDA, despite slightly lower
interest rates. The General Fund investment income is greater than the Statement of Activities
investment income due to the interest earned on the RDA advances, which is eliminated when
preparing the Statement of Activities. With this as background, the following chart and graph
reflects the major revenue categories of the General Fund for the last two years:
13
Revenues:
Original
Budget
Final
Bud et
2004
Actual
Favorable/
(Unfavorable)
2003
Actual
Actual
Chance
Taxes
$ 10,721,600
10,721,600
13,184,050
2,462,450
11,572,985
1,611,065
Licenses and permits
857,500
1,087,500
3,096,145
2,008,645
1,982,127
1,114,018
Charges for services
1,404,023
1,080,123
2,619,578
1,539,455
2,302,759
316,819
Intergovernmental
4,073,400
4,679,563
4,895,986
216,423
4,394,046
501,940
Investment income
1,468,800
2,417,882
2,335,154
(82,728)
1,894,303
440,851
Miscellaneous
3,000
18.444.035
109,3881
109,388
87,236
22,152
$ 18,528,323
19,986,6681
26,2403011
6,253,633
22,233 456
4,006,845
Total revenues
Other Revenues
The Statement of Activities lists FY 03/04 tax increment funds collected of $24,450,337 versus
$21,191,832 in FY 02/03. As previously discussed, these funds are used for repayment of RDA
debt and low and moderate housing. This year the two RDA Project Areas (1 and 2) property tax
valuations have increased an average of 17% based upon new growth and higher County Tax
Assessor's assessments on existing properties. In addition, far fewer assessment appeals at the
County Assessor's office are outstanding.
EXPENSES
The Statement of Activities lists $39,212,009 in expenses for FY 03/04 as compared to
$47,497,312 for the prior year. Of this amount the three largest categories are $7.5 million (19.1
million in FY 02/03) in Planning and Development which includes the RDA, $9.6 million (8.5
million in FY 02/03) in interest debt service costs for outstanding debt, and $10.3 million (8.5
million in FY 02/03) in Public Safety, which includes the costs of the County of Riverside
Sheriff's and Fire contracts. The City contracts with the California Department of Forestry
through the County of Riverside for fire services and with a private vendor for library services.
Through an agreement with the County of Riverside, $1.2 million in library services ($1 million
in FY 02/03) was withheld from our property tax increment payments and not remitted to the
City. The Statement of Activities includes fire protection service costs this year of $2.25 million
(offset by a like amount of intergovernmental revenue from tax increment payments). The City
has entered into an agreement with the County of Riverside to annually set forth the level of
service for fire services. Any service level over the amount of tax increment generated from the
RDA would require additional payments to the County.
General Fund Expenses
The following table lists the $18,444,035 in general fund expenditures included in the Statement
of Activities.
Expenditures
Original
Budget
Final
Budget
2004
Actual
Favorable/
(Unfavorable)
2003
Actual
Actual
Change
General government
$ 4,007,684
4,458,685
3,892,220
566,465
3,140,576
751,644
Public safety
9,634,963
10,115,723
9,672,180
443,543
8,202,408
1,469,772
Community services
999,142
1,212,929
1,025,397
187,532
991,558
33,839
Planning and development
863,937
1,301,781
750,444
551,337
674,450
75,994
Public works
1 2,946,1131
4,263,491
3,103,7941
1.159.6971
2.311.4361
792,358
1 $ 18,451,839
21 352,609
18.444.035
2,908,5741
15,320,428
3,123 607
Total expenditures
14
The major increases in the original and final budget for public safety consisted of increases in the
plan check services for the Building Division to deal with the increased building activity in the
City of La Quinta. The major increase between the original and final budget in public works
budgets consisted of increases in plan check contracts to service new developments and additional
slurry seal projects for road repair. The major increase in the original and final budget for general
government consisted of additional legal costs.
Major increases in actual costs for FY 03/04 can be attributed to added police positions and
salaries, additional fire service personnel and costs, additional building inspection contract
services, additional building plan check contract services, and additional engineering plan check
contract services.
Major and Non -Major Funds
The City has identified seven major funds for FY 03/04 — General Fund, Debt Service RDA No
Fund, Debt Service RDA No.2 Fund, Financing Authority Debt Service Fund, Capital Projects
Fund, RDA No.I Capital Projects Fund and the 2004 Low & Moderate Bond Fund. GASB has
set forth criteria for identifying major funds based upon the size of their balance statements or
financial activity during the year. Major funds can change from year to year except for the
General Fund, which is always considered a major fund. In addition, management is given the
latitude to identify any additional major funds, even though the funds may not meet the GASB
criteria. For this year, the City of La Quinta has not identified a non -major fund to classify as a
major fund.
The purpose of this major and non -major classification is to highlight for the reader those funds
that have a material impact on the City financial statement which may warrant closer review by
the reader.
Conclusion
As was mentioned in the Executive Summary, Management is pleased to report that the City of
La Quinta was able to add to its reserves for FY 03/04. We hope you find this financial report,
based upon the third year of implementing GASB 34 reporting model, helpful in your evaluation
of the financial position and the operations of the City of La Quinta. If you have any questions
about this report, please feel free to give me a call, John Falconer, CPA at 760-777-7150.
15
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16
BASIC FINANCIAL STATEMENTS
17
CITY OF LA QUINTA
Statement of Net Assets
June 30, 2004
Assets:
Cash and investments (note 2)
Accounts receivable
Taxes receivable
Prepaid items
Interest receivable
Notes receivable (note 4)
Due from other governments
Deposits
Restricted assets:
Cash and investments with fiscal agent (note 2)
Capital assets (note 5):
Land
Right of way
Construction in progress
Other capital assets, net
Total assets
Liabilities:
Accounts payable
Accrued salaries and benefits
Interest payable
Deposits payable
Retentions payable
Due to other governments
Noncurrent liabilities (notes 6 to 12):
Due within one year
Due in more than one year
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for:
Public safety
Community services
Planning and development
Public works
Unrestricted
Governmental Activities
Anna ?nn;
$ 89,936,019 81,299,937
515,984
264,272
353,361
263,555
292,816
17,515
415,681
173,789
12,741,527
12,613,565
6,511,052
4,560,265
246,858
186,073
95,474,813 30,019,271
73,505,659
56,467,549
234,280,023
230,148,147
27,932,823
29,604,242
62,967,139
43,025,230
605,173,755 488,643,410
5,393,144
5,363,158
376,210
270,617
3,423,766
2,767,256
2,125,238
1,768,499
726,299
-
163,404
418,868
5,016,762 4,021,110
249,3 04,13 8 159,887,567
266,528,961 174,497,075
249,059,500 225,818,022
8,413
736,650
17,408,711
26,262,192
45,169,328
40,210
573,981
18,540,558
20,883,564
48,290,000
Total net assets $ 338,644,794 314,146,335
See accompanying notes to the basic financial statements.
18
Governmental activities:
General government
Public safety
Community services
Planning and
development
Public works
Interest expense
Total governmental
activities
CITY OF LA QUINTA
Statement of Activities
Year ended June 30, 2004
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Net Governmental
Activities
2004 2003
$ 4,319,778
337,376
- -
(3,982,402)
(2,904,713)
10,256,463
4,004,621
119,862 -
(6,131,980)
(3,871,758)
1,446,999
252,677
734,325 653,217
193,220
(233,829)
7,526,977
662,737
120,490 -
(6,743,750)
(17,513,806)
6,003,013
1,813,993
824,826 11,436,926
8,072,732
(1,934,669)
9,658,779
-
- -
(9,658,779)
(8,555,401)
$39,212,009
7,071,404
1,799,503 12,090,143
(18,250,959)
(35,014,176)
General revenues:
Taxes:
Property taxes
Tax increment
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
Motor vehicle in lieu
Miscellaneous revenues
Total general revenues
Change in net assets
Net assets at beginning of year
Net assets at end of year
See accompanying notes to the basic financial statements.
19
2,198,141
1,800,616
24,450,337
21,191,832
5,240,037
4,345,381
4,261,767
4,036,290
895,810
690,544
867,058
700,154
1,738,505
1,353,868
1,608,151
1,870,315
1,489,612
513.876
42,749,418 36,502,876
24,498,459 1,488,700
314,146,335 312,657,635
$ 338,644,794 314,146,335
CITY OF LA QUINTA
Governmental Funds - Balance Sheet
June 30, 2004
See accompanying notes to the basic financial statements.
20
Debt Service Funds
Redevelopment
Redevelopment
Agency -
Agency -
Financing
General
PA No. 1
PA No. 2
Authority
Assets
Cash and investments
$ 27,694,719
16,134,876
5,021,687
5,006
Cash with fiscal agent
-
309
11
6
Accounts receivable
369,198
-
-
40
Taxes receivable
353,361
_
-
-
Prepaid items
292,816
-
-
Interest receivable
187,163
53,535
20,892
-
Notes receivable (note 4)
-
-
-
90,000,000
Due from other funds (note 18)
26,580
-
-
Due from other governments
5,238,738
235,743
188,913
-
Advances to other funds (note 18)
28,671,083
-
-
-
Deposits
246,858
-
-
-
Total assets
$ 63,080,516
16,424,463
5,231,503
90,005,052
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 1,841,898
1,109
-
-
Accrued salaries and benefits
376,210
-
-
-
Deferred revenue
4,031,907
-
-
90,000,000
Deposits payable
1,961,861
-
-
-
Retentions payable
-
-
-
-
Due to other governments
163,404
-
-
-
Due to other funds (note 18)
-
-
-
-
Advances from other funds (note 18)
-
12,335,283
16,335,800
-
Total liabilities
8,375,280
12,336,392
16,335,800
90,000,000
Fund Balances:
Fund balances (deficits) (note 21):
Reserved for:
Debt service
4,088,071
-
-
Bond projects
-
-
-
-
Prepaid items
292,816
-
-
-
Deposits
246,858
-
-
-
Advances to other funds
28,671,083
-
-
Notes receivable
-
-
-
-
Unreserved, reported in (note 24):
General fund
25,494,479
-
-
-
Special revenue funds
-
-
-
-
Debt service funds
-
-
(11,104,297)
5,052
Capital projects funds
-
-
-
-
Total fund balances
54,705,236
4,088,071
(11,104,297)
5,052
Total liabilities and fund balances
$ 63,080,516
16,424,463
5,231,503
90,005,052
See accompanying notes to the basic financial statements.
20
Capital Projects Funds
Redevelopment
Capital Agency - 2004
Improvement PA No. 1 Low/Mod Bond
840,279 14,011,979 -
- 29,272,059 57,656,982
60,403 -
2,756,703
702,011 - -
- 4,075,463
4,298,993 47,419,904 57,656,982
3,441,782
14,034
116,878
726,299
4,298,993
16,531
16,531
Other
Governmental
- I_
Totals
2004 2003
23,143,081
86,851,627
78,350,979
8,545,446
95,474,813
30,019,271
146,746
515,984
249,272
-
353,361
263,555
-
292,816
17,515
82,045
404,038
173,789
12,741,527
102,741,527
12,613,565
-
2,783,283
95,890
141,715
6,507,120
4,560,265
1,260,695
34,007,241
26,003,042
- 246,858 186,073
46,061,255 330,178,668 152,533,216
62,940
5,364,260
5,326,444
-
376,210
270,617
10,618,102
104,664,043
12,992,060
46,499
2,125,238
1,768,499
-
726,299
-
-
163,404
418,868
2,783,283
2,783,283
95,890
5,336,158
34,007,241
26,003,042
18,846,982 150,209,978 46,875,420
- - -
-
4,088,071
2,273,588
- 29,272,059 57,656,982
-
86,929,041
30,016,934
- - -
-
292,816
17,515
- -
-
246,858
186,073
- 4,075,463
1,260,000
34,006,546
24,893,196
- - -
2,123,425
2,123,425
2,117,586
- - -
-
25,494,479
26,584,773
- - -
9,286,459
9,286,459
9,382,431
(11,099,245)
1 )
14,055,851 -
14,544,389
28,600,240
6,368,205
- 47,403,373 57,656,982
27,214,273
179,968,690
105,657,796
4,298,993 47,419,904 57,656,982
46,061,255
330,178,668
152,533,216
21
CITY OF LA QUINTA
Governmental Funds
Reconcilation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2004
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of
net assets are different because:
Capital assets, net of depreciation, have not been included
as financial resouces in governmental fund activity.
Infrastructure
Other capital assets
Accumulated depreciation
Long term debt and compensated absences that have not been included
in the governmental fund activity:
Bonds payable
Compensated absences
Other long term liabilities
Accrued interest payable for the current portion of interest due on
bonds payable has not been reported in the governmental funds.
Revenues that are measurable but not available. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting.
Internal service funds are used by mangement to charge the costs of
certain activities, such as equipment management, to individual funds.
The assets and liabilities of the internal service funds must be added
to the statement of net assets
Net assets of governmental activities
See accompanying notes to the basic financial statements.
22
$ 179,968,690
358,891,693
100,990,963
(61,197,012)
(243,111,094)
(531,553)
(10,678,253)
(3,423,766)
14,664,043
3,071,083
$ 338,644,794
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23
CITY OF LA QUINTA
Governmental Fund Types - Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2004
See accompanying notes to the basic financial statements.
24
Debt Service Funds
Redevelopment
Redevelopment
Agency -
Agency -
Financing
General
PA No. 1
PA No. 2
Authority
Revenues:
Taxes
$ 13,184,050
23,966,954
12,126,671
-
Licenses and permits
3,096,145
-
-
-
Charges for services
2,619,578
-
-
-
Developer fees
-
-
-
-
Intergovernmental
4,895,986
-
-
-
Investment income
2,335,154
201,721
75,625
100
Special assessments
-
-
-
-
Rental income
-
-
-
680,772
Miscellaneous
109,388
-
-
9,686
Total revenues
26,240,301
24,168,675
12,202,296
690,558
Expenditures:
Current:
General government
3,892,220
-
-
-
Public safety
9,672,180
-
Community services
1,025,397
-
-
-
Planning and development
750,444
377,920
168,983
5,205
Public works
3,103,794
-
-
-
Capital projects
-
-
-
-
Debt service:
Principal
-
2,920,707
276,169
300,000
Interest
-
9,018,569
1,536,694
380,830
Fiscal charges
-
-
-
-
Payment to bond escrow
-
1,253,848
337,259
-
Payments under pass-through
obligations
-
11,767,922
9,680,225
-
Total expenditures
18,444,035
25,338,966
11,999,330
686,035
Excess (deficiency) of revenues
over (under) expenditures
7,796,266
(1,170,291)
202,966
4,523
Other financing sources (uses):
Issuance of tax allocation bonds
-
-
-
-
Issuance of revenue bonds
-
Payment to bond escrow
-
(15,708,019)
(4,246,981)
-
Transfers in (note 20)
183,289
18,693,322
4,922,224
-
Transfers out (note 20)
(959,002)
-(5,800,000
-
Total other financing sources (uses)
(775,713)
2,985,303
(5,124,757)
-
Net change in fund balances
7,020,553
1,815,012
(4,921,791)
4,523
Fund balances (deficit) at beginning of year
47,684,683
2,273,059
(6,182,506)
529
Fund balances (deficit) at end of year
$ 54,705,236
4,088,071
(11,104,297)
5,052
See accompanying notes to the basic financial statements.
24
- - - - 21,448,147 17,561,994
43,207,098 1,832,408 9,250,051 110,757,923 70,192,980
(37,122,716)
Capital Projects Funds
2,781
9,342,156
(22,134,106)
361,738
Redevelopment
Other
Capital
Agency - 2004
Governmental
Totals
26,400,000
Improvement
PA No. 1 Low/Mod Bond
Funds
2004
2003
90,000,000
-
-
- -
9,023,407
58,301,082
50,326,811
-
-
-
3,096,145
1,982,127
-
-
-
2,619,578
2,302,759
-
-
5,718,073
5,718,073
3,021,245
5,931,382
- -
1,031,259
11,858,627
7,194,521
-
635,823 2,781
484,780
3,735,984
3,368,709
-
- -
816,045
816,045
780,259
-
6,794
431,178
1,118,744
1,094,510
153,000
- -
1,087,465
1,359,539
483,777
6,084,382
642,617 2,781
18,592,207
88,623,817
70,554,718
-
- -
207,156
4,099,376
3,344,406
-
- -
528
9,672,708
8,344,428
-
- -
-
1,025,397
993,964
-
1,832,408 -
4,345,461
7,480,421
7,804,294
-
- -
1,432,795
4,536,589
3,685,050
43,207,098
- -
124,821
43,331,919
16,057,578
-
- -
113,662
3,610,538
2,931,952
-
- -
-
10,936,093
9,469,314
- -
3,025,628
3,025,628
-
- -
-
1,591,107
-
- - - - 21,448,147 17,561,994
43,207,098 1,832,408 9,250,051 110,757,923 70,192,980
(37,122,716)
(1,189,791)
2,781
9,342,156
(22,134,106)
361,738
-
-
-
26,400,000
26,400,000
-
-
-
-
90,000,000
90,000,000
-
-
-
-
-
(19,955,000)
-
44,62.5,348
14,064,243
66,323,236
5,802,000
154,613,662
23,887,256
(7,502,632)
(6,561,612)
(8,669,035)
(125,121,381)
(154,613,662)
(23,887,256)
37,122,716
7,502,631
57,654,201
(2,919,381)
96,445,000
-
-
6,312,840
57,656,982
6,422,775
74,310,894
361,738
-
41,090,533
-
20,791,498
105,657,796
105,296,058
-
47,403,373
57,656,982
27,214,273
179,968,690
105,657,796
25
CITY OF LA QUINTA
Reconcilation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2004
Net changes in fund balances - total governmental funds $ 74,310,894
Amounts reported for governmental activities in the statement of
activities is different because:
Governmental funds report capital outlay as expenditures. However, in
the statement of activities, the cost of those assets is allocated over their
estimated useful lives as depreciation expense.
Capital outlay 43,331,919
Depreciation (2,590,779)
Proceeds from the issuance of bonds is reported as other financing sources in the
governmental funds. The issuance of bonds increases liabilities in the statement of
net assets, but does not result in an increase in the statement of activities. (116,400,000)
Retirement of bonds reduces the long-term liability in the statement of net assets
as opposed to being recorded as an other financing use in the fund statements. 21,328,088
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets, 31245,605
The statement of net assets includes accrued interest on long term debt. (656,510)
To record as an expense the net change in compensated absences in the
statement of activities. (69,293)
Revenues that are measurable but not available. Amounts are not recorded
as revenue under the modified accrual basis of accounting. 1,671,983
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The net revenues
(expenses) of the internal service funds is reported with governmental activities. 326,552
Change in net assets of governmental activities $ 24,498,459
See accompanying notes to the basic financial statements.
OR
CITY OF LA QUINTA
Proprietary Funds
Statement of Net Assets
June 30, 2004
Liabilities
Current liabilities:
Accounts payable 28,884 36,713
Net Assets
Invested in capital assets, net of related debt 1,111,924 929,210
Unrestricted 3,071,083 2,927,245
Total net assets $ 4,183,007 3,856,455
See accompanying notes to the basic financial statements.
27
Governmental Activities -
Internal Service Funds
2004 2003
Assets
Current assets:
Cash and investments
$ 3,084,392 2,948,958
Interest receivable
11,643 -
Due from other governments
3,932 15,000
Capital assets, net
1,111,924 929,210
Total assets
4,211,891 3,893,168
Liabilities
Current liabilities:
Accounts payable 28,884 36,713
Net Assets
Invested in capital assets, net of related debt 1,111,924 929,210
Unrestricted 3,071,083 2,927,245
Total net assets $ 4,183,007 3,856,455
See accompanying notes to the basic financial statements.
27
CITY OF LA QUINTA
Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Assets
Year ended June 30, 2004
Governmental Activities -
Internal Service Funds
2004 2003
Operating revenues:
Charges for services $ 694,960 451,512
Miscellaneous - 2,382
Total operating revenues 694,960 453,894
Operating expenses:
Salaries and benefits
51,862
-
Fuel and oil
33,390
34,213
Maintenance and parts
138,406
119,032
Contract services
124,037
172,755
Software and supplies
120,098
70,749
Depreciation
305,834
276,517
Other operating expenses
-
11,784
Total operating expenses
773,627
685,050
Operating income (loss)
(78,667)
(231,156
Non-operating revenues (expenses);
Investment income
58,469
72,899
Total non-operating revenues (expenses)
58,469
72,899
Income (loss) before transfers
and capital contributions
(20,198)
(158,257)
Capital contributions
346,750
30,099
Changes in net assets
326,552
(128,158)
Net assets at beginning of year
3,856,455
3,984,613
Net assets at end of year
$ 4,183,007
3,856,455
See accompanying notes to the basic financial statements.
28
CITY OF LA QUINTA
Proprietary Funds
Statement of Cash Flows
Year ended June 30, 2004
Cash flows from investing activities:
Interest received on investments 46,826 72,899
Net cash provided by (used for) investing activities 46,826 72,899
Net increase (decrease) in cash and cash equivalents 135,434 (57,739)
Cash and cash equivalents at beginning of year 2,948,958 3,006,697
Cash and cash equivalents at end of year $ 3,084,392 2,948,958
Reconciliation of operating income to net cash provided by
operating activities:
Operating income(loss)
Governmental Activities -
(231,156)
Internal Service Funds
2004
2003
Cash flows from operating activities:
Depreciation
Cash received from other customers
$ 706,028
438,894
Cash payments to suppliers for goods and services
427,627)
(393,873)
Net cash provided by (used for) operating activities
278,401
45,021
Cash flows from capital and related activities:
18,515
Increase (decrease) in accounts payable
Purchase of fixed assets
(189,793)
(175,659)
Net cash provided by (used for) capital and related activities
(189,793)
(175,659)
Cash flows from investing activities:
Interest received on investments 46,826 72,899
Net cash provided by (used for) investing activities 46,826 72,899
Net increase (decrease) in cash and cash equivalents 135,434 (57,739)
Cash and cash equivalents at beginning of year 2,948,958 3,006,697
Cash and cash equivalents at end of year $ 3,084,392 2,948,958
Reconciliation of operating income to net cash provided by
operating activities:
Operating income(loss)
$ (78,667)
(231,156)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
305,834
276,517
Adjustments:
(Increase) decrease in due from other governments
11,068
(15,000)
(Increase) decrease in other assets
47,995
18,515
Increase (decrease) in accounts payable
(7,829)
(3,855)
Net cash provided by (used for) operating activities
$ 278,401
45,021
Noncash capital, financing and investing activities:
Fixed assets disposals $ (511,491) -
Fixed assets contributed by other funds 346,750 30,099
See accompanying notes to the basic financial statements.
29
CITY OF LA QUINTA
Agency Funds
Statement of Fiduciary Assets and Liabilities
June 30, 2004
Assets
Cash and investments (note 2)
Accounts receivable
Total assets
Liabilities
Due to bondholders
Total liabilities
2004 2003
$ 1,982,134 1,740,812
6,973 44,846
$ 1,989,107 1,785,658
$ 1,989,107 1,785,658
$ 1,989,107 1,785,658
See accompanying notes to the basic financial statements.
30
CITY OF LA QUINTA
Notes to the Basic Financial Statements
Year ended June 30, 2004
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The City of La Quinta ("the City") was incorporated May 1, 1982 under the
general laws of the State of California. In November 1996, the City became a
charter City. The City operates under the Council - Manager form of government.
The City provides many community services including public safety, highway
and street maintenance, health and social services, cultural and leisure services,
public improvements, planning and zoning services, and community development
services.
The accounting policies of the City conform to generally accepted accounting
principles as applicable to governments. As required by generally accepted
accounting principles, these financial statements present the government and its
component units, which are entities for which the government is considered to be
financially accountable. The City is considered to be financially accountable for
an organization if the City appoints a voting majority of that organization's
governing body and the City is able to impose its will on that organization or
there is a potential for that organization to provide specific financial benefits to or
impose specific financial burdens on the City. The City is also considered to be
financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval from the City). In certain cases, other organizations are included as
component units if the nature and significance of their relationship with the City
are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
All of the City's component units are considered to be blended component units.
Blended component units, although legally separate entities, are, in substance,
part of the 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 Redevelo ment Agency
The La Quinta Redevelopment Agency (Agency) has established two
redevelopment project areas pursuant to the State of California Health & Safety
Code, Section 33000 entitled "Community Redevelopment Law". On November
29, 1983 and May 16, 1989, the City Council approved and adopted the
Redevelopment Plans for the La Quinta Redevelopment Project Areas No. 1 and
No. 2, respectively. These plans provide for the elimination of blight and
deterioration, which was found to exist in the project areas. Although the Agency
31
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
is legally separate, it is reported as if it were part of the City because the City
Council also serves as the governing board of the Agency. Separate financial
statements of the Agency can be obtained at City Hall.
City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Authority) was established pursuant
to a Joint Exercise of Powers Agreement dated November 19, 1991 between the
City of La Quinta and the La Quinta Redevelopment Agency. The purpose of the
Authority is to provide financing necessary for the construction of various public
improvements through the issuance of debt. Although the Authority is legally
separate, it is reported as if it were part of the City because the City Council also
serves as the governing board of the Authority. Separate financial statements of
the Authority are not prepared.
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government -wide financial statements
Fund financial statements
• Notes to the financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and Interpretations, APB Opinions, and Accounting Research
Bulletins that were issued on or before November 30, 1989 that do not conflict
with or contradict GASB pronouncements.
32
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Government -wide Financial Statements
Government -wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements
include separate columns for the governmental and business -type activities of the
primary government (including its blended component units), as well as its
discreetly presented component units. The City of La Quinta has no business -type
activities or discretely presented component units. Eliminations have been made
in the Statement of Activities so that certain allocated expenses are recorded only
once (by function to which they were allocated). However, general governmental
expenses have not been allocated as indirect expenses to the various functions of
the City.
Government -wide financial statements are presented using the economic
resources measurement focus and the accrual basis of accounting. Under the
economic resources measurement focus, all (both current and long-term)
economic resources and obligations of the reporting government are reported in
the government -wide financial statements. Basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the
financial statements. Under the accrual basis of accounting, revenues, expenses,
gains, losses, assets, and liabilities resulting from exchange and exchange -like
transactions are recognized when the exchange takes place. Revenues, expenses,
gains, losses, assets, and liabilities resulting from nonexchange transactions are
recognized in accordance with the requirements of GASB Statement No. 33.
Program revenues include charges for services, special assessments, and
payments made by parties outside of the reporting government's citizenry if that
money is restricted to a particular program. Program revenues are netted with
program expenses in the statement of activities to present the net cost of each
program.
Amounts paid to acquire capital assets are capitalized as assets in the government -
wide financial statements, rather than reported as an expenditure. Proceeds of
long-term debt are recorded as a liability in the government -wide financial
statements, rather than as an other financing source. Amounts paid to reduce long-
term indebtedness of the reporting government are reported as a reduction of the
related liability, rather than as an expenditure.
33
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(I)SummMofof Significant Accounting Policies, (Contint ed)
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the
basis of separate funds, each of which is considered to be a separate accounting
entity. The operations of each fund are accounted for with a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity, revenues and
expenditures or expenses, as appropriate. Governmental resources are allocated to
and accounted for in individual funds based upon the purposes for which they are
to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental,
proprietary, and fiduciary funds are presented after the government -wide financial
statements. These statements display information about major funds individually
and nonmajor funds in the aggregate for governmental and enterprise funds.
Fiduciary statements include financial information for fiduciary funds and similar
component units. Fiduciary funds of the City primarily represent assets held by
the City in a custodial capacity for other individuals or organizations.
Governmental Funds
In the fund financial statements, governmental funds are presented using the
modified -accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that
the amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to
be available to finance the expenditures accrued for the reporting period. The City
uses a thirty day availability period.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related
goods or services are provided). Locally imposed derived tax revenues are
recognized as revenues in the period in which the underlying exchange
transaction on which they are based takes place. Imposed non-exchange
transactions are recognized as revenues in the period for which they were
imposed. If the period of use is not specified, they are recognized as revenues
when an enforceable legal claim to the revenues arises or when they are received,
whichever occurs first. Government -mandated and voluntary non-exchange
transactions are recognized as revenues when all applicable eligibility
requirements have been met.
34
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Suminary of Significant Accounting Policies, (Continued)
In the fund financial statements, governmental funds are presented using the
current financial resources measurement focus. This means that only current
assets and current liabilities are generally included on their balance sheets. The
reported fund balance (net current assets) is considered to be a measure of
"available spendable resources." Governmental fund operating statements present
increases (revenues and other financing sources) and decreases (expenditures and
other financing uses) in net current assets. Accordingly, they are said to present a
summary of sources and uses of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources," since they do not represent net
current assets. Recognition of governmental fund type revenues represented by
noncurrent receivables are deferred until they become current receivables.
Noncurrent portions of other long-term receivables are offset by fund balance
reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term debt are recorded as an other financing sources rather than as a fund
liability. Amounts paid to reduce long-term indebtedness are reported as fund
expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses
are considered to be paid first from restricted resources, and then, from
unrestricted resources.
35
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Pronrietary Funds
The City's internal service funds are proprietary funds. In the fund financial
statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when
the related goods or services are delivered. In the fund financial statements,
proprietary funds are presented using the economic resources measurement focus.
This means that all assets and all liabilities (whether current or noncurrent)
associated with their activity are included on their balance sheets. Proprietary
fund type operating statements present increases (revenues) and decreases
(expenses) in total net assets.
Amounts paid to acquire capital assets are capitalized as assets in the internal
service fund financial statements, rather than reported as an expenditure. Proceeds
of long-term debt are recorded as a liability in the internal service fund financial
statements, rather than as an other financing source. Amounts paid to reduce long-
term indebtedness of the internal service fund are reported as a reduction of the
related liability, rather than as an expenditure.
Fiduciary Funds
The City's fiduciary funds are agency funds. Agency funds are custodial in
nature. Assets equal liabilities. Agency funds use the accrual basis of accounting.
(c) M@jor Funds, Internal Service Funds and Fiduciary Fund Types
The City's major funds are as follows:
General Fund — The primary fund of the City is used to account for all revenue
and expenditures of the City not legally restricted as to use. A broad range of
municipal activities are provided through this fund including City Manager, City
Attorney, Finance, City Clerk, Community Development, Police Services, Public
Works, Building and Safety, and Community Services.
Redevelopment Agency Debt 'Service — Project Area No. 1 Fund — This debt
service fund is used to account for the accumulation of resources for the payment
of debt service for bond principal and interest and trustee fees for Project Area
No. 1.
Redevelopment Agency Debt Service — Project Area No. 2 Fund — This debt
service fund is used to account for the accumulation of resources for the payment
of debt service for bond principal and interest and trustee fees for Project Area
No. 2.
36
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
l Summa of Significant Accounting Policies Continued
Financing Authority Debt Service Fund — To account for the Public Financing
Authority bond proceeds that will be used for specific projects and programs of
the City.
Capital Improvement Fund — This capital projects fund is used to account for the
planning, design and construction of various capital projects throughout the City
of La Quinta and the Redevelopment Agency.
Redevelopment Agency Ca itap 1 Projects -- Project Area No. 1 Fund — This fund is
used to account for the bond proceeds, interest and other funding that will be used
for development, planning, construction and land acquisition within the project
area.
2004 Low/Moderate Bond Fund — To account for the 2004 revenue bond proceeds
that will be used to finance projects benefiting low and moderate income housing
in La Quinta Redevelopment Project Area No. 1 and Project Area No. 2.
Other fund types of the City are as follows:
Internal Service Funds:
Equipment Replacement Fund — This fund accounts for equipment and vehicle
maintenance and replacement services provided to other departments on a cost -
reimbursement basis.
Information Technology Fund — This fund is used to account for the acquisition of
computer equipment, maintenance, and services to support information systems
within the City. Costs are reimbursed by the benefiting departments.
Agency Funds — These funds account for assets held by the City as an agency for
assessment district bondholders and for Arts in Public Places donations.
(d) Investments
For financial reporting purposes, investments are adjusted to their fair value
whenever the difference between fair market value and the carrying amount is
material.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale
of investments.
37
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Siggificant Accounting Policies, (Continued)
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash
and investment balance.
(e) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-
term, highly liquid investments that are both readily convertible to known
amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary funds' share in the cash and investment pool of the City
of La Quinta. Cash equivalents have an original maturity date of three months or
less from the date of purchase. For purposes of the statement of cash flows, the
entire balance of cash and investments on the combined balance sheet for the
internal service fund is considered cash and cash equivalents.
(fl Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical
records are available and at an estimated historical cost where no historical
records exist. Contributed capital assets are valued at their estimated fair market
value at the date of the contribution. Generally, capital asset purchases in excess
of $5,000 are capitalized if they have an expected useful life of three years or
more.
Capital assets include public domain (infrastructure) general fixed assets
consisting of certain improvements including roads, streets, sidewalks, medians,
and storm drains.
Capital assets used in operations are depreciated over their estimated useful lives
using the straight-line method in the government—wide financial statements and in
the fund financial statements of the internal service funds. Depreciation is charged
as an expense against operations and accumulated depreciation is reported on the
respective balance sheet.
38
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The following schedule summarizes fixed asset useful lives:
Buildings and improvements 10-30 years
Equipment and furniture 3-20 years
Vehicles 5-10 years
Infrastructure 10-50 years
(g) Employee Leave Benefits
Sick time is vested on a percentage based on number of years employed at the
City. Maximum accumulation of sick and vacation is 30 and 40 days,
respectively.
Upon termination or retirement, permanent employees are entitled to receive
compensation at their current base salary for all unused vacation leave. If an
employee terminates with a minimum of two years service, the employee is
entitled to receive 25% of the value of his unused sick leave. The percentage
increases by 25% for each five-year period until the employee is entitled to 75%
of the value of his unused sick leave. This will occur upon the completion of ten
years of continuous employment.
(h) Postemployment Benefits
The City does not provide postemployment benefits (other than pension benefits)
to its employees.
(1) Pi'cpald Items
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both government -wide and fund financial
statements.
0) Fund Equity
In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific purpose. Designations of fund
balance represent tentative management plans that are subject to change.
39
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments
Cash and investments are reported as follows:
Statement of Net Assets:
Cash and investments
Cash and investments with fiscal agent
Statement of Fiduciary Assets and Liabilities:
Cash and investments
Total
$ 89,936,019
95,474,813
1,982,134
_187,392.966
Cash and investments held by the City at June 30, 2004 consisted of the following:
Petty cash
$ 1,000
Demand deposits
765,613
Investments
186,626,353
Total
$ 187.392.966
The City and its component units are authorized by its investment policy to invest in the
following types of investments:
Investment Type
U.S. treasuries and Government National
Mortgage Association
FHLB, FFCB, FLB, FNMA, FHLMC
Government pools
U.S. government and agency securities
Commercial Paper
Mutual Funds
Certificates of Deposit
40
Restriction
None
$7.5 million per issuer
$40 million and 25% of portfolio
100% of portfolio
$3 million per issuer, 15% of portfolio
and 90 days
20%
None
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
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%n of the total amount deposited by the public
agencies. California law also allows financial institutions to secure City deposits by
pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits.
Deposits of cities and other state or local governments are classified in three categories to
give an indication of the level of credit risk assumed by the City, as follows:
Category 1 - includes deposits that are insured or collateralized with securities held by the
City or its agent in the City's name.
Category 2 - includes deposits collaterali„ed with securities held by the pledging financial
institution's trust department or agent in the City's name. Category 2 also includes
deposits collateralized by an interest in an undivided collateral pool held by an authorized
Agent or Depository and subject to certain regulatory requirements under State law.
Category 3 - includes deposits collateralized with securities held by the pledging financial
institution, or by its trust department or agent but not in the City's name. Category 3 also
includes any uncollateralized deposits.
Category Bank Book
Form of Deposit 1 2 3 Balance Balance
Deposits held by the City:
Demand deposits 3.542 - 654 821 765.613
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.
41
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
2 Cash and Investments Continued
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.
Category
Carrying
1 2 3
Value
Investments held by the City:
U.S. Treasury Notes $42,890,220 - -
42,890,220
Government Agency Securities 27,511,851 - -
27,511,851
Investments held by fiscal agent:
U.S. Treasury Bills - 89,363,63.1 -
89,363,631
$70.4(12.071 89,363,631 -
159,765,702
Investments held by the City not subject to categorization:
Investment in State of California Local Agency Investment Fund
20,749,469
Investments held by fiscal agent not subject to categorization:
Investment in mutual funds:
First American Treasury Obligation Fund
6,111,182
3
42
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
2 Cash and Investments Contimied
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the City's investment in this pool is
reported in the accompanying financial statements at amounts based upon the City's pro -
rata share of the fair value provided by LAIF for the entire LAW portfolio (in relation to
the amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Included in LAIF's investment portfolio are collateralized mortgage obligations,
mortgage-backed securities, other asset-backed securities, loans to certain state funds,
and floating rate securities issued by federal agencies, government-sponsored enterprises,
and corporations.
(3) P roDaily 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 that are received
from the County within sixty days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
The La Quinta Redevelopment Agency's primary source 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.
43
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(3) Property Taxes, (Continued)
The Agency has no power to levy and collect taxes and any legislative property tax shift
might reduce the amount of tax revenues that would otherwise be available to pay the
principal of, and interest on, debt. Broadened property tax exemptions could have a
similar effect. Conversely, any increase in the tax rate or assessed valuation, or any
reduction or elimination of present exemptions would increase the amount of tax
revenues that would be available to pay principal and interest on debt.
4) Notes Receivable
Outstanding
Balance at
June 30. 2004
In September 1994, the Redevelopment Agency sold certain
real property to LINC Housing for $2,112,847. The property
was used to construct single-family homes and rental units to
increase the City's supply of low and moderate income
housing. The note bears interest at 6% per annum and is due in
full on June 15, 2029.
$ 3,153,490
In December 2000, the Redevelopment Agency entered into an
agreement with LILAC Housing to receive $9,500,000 as a
reimbursement for Agency costs incurred for the construction
of infrastructure related to the development of senior
apartments. Payments are due to the Agency in the amount of
annual positive cash flow generated by the rental of the units.
All unpaid principal and interest on the note are due fifty-five
years after the completion of the project. Interest on the note
accrues at 3% per annum.
9,500,000
Other notes receivable
88,037
Total notes receivable reported on the statement of net assets
12,741,527
In June 2004, the Redevelopment Agency entered into an
agreement to borrow $90,000,000 from the Financing
Authority Debt Service Fund to provide for the advance
refunding of the Agency's Redevelopment Project Areas No. 1
and 2, 1995 Housing Tax Allocation Bonds and to finance
projects benefiting low and moderate income housing within
the project areas. The funding was provided through the
issuance of the 2004 Series A Local Agency Revenue Bonds
issued by the Financing Authority. The note accrues interest
between 3% and 5.25% per annum, payable semi-annually.
Principal payments ranging from $735,000 to $5,660,000 are
payable annually through September 2034.
902000,000
Total notes receivable reported in the Governmental Funds —
Balance Sheet
$102,741,527
44
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(5) Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2004 is as
follows:
Balance at Balance at
June 30, 2003 Additions Deletions June 30, 2004
Buildings and improvements
$ 16,428,276
8,392,389
(143,235)
24,677,430
Equipment and furniture
1,988,280
251,548
(656,101)
1,583,727
Vehicles
954,339
441,940
(172,132)
1,224,147
Infrastructure
82,869,720
13,818,073
—(8,946)
96,678,847
Total cost of depreciable
609152
.61,197,012
assets
102,240,615
22,903,950
(980,414)
124,164,151
Less accumulated
depreciation:
Buildings and
improvements
Equipment and furniture
Vehicles
Infrastructure
Total accumulated
depreciation
Net depreciable assets
Capital assets not
depreciated:
Land
Right of way
Construction in progress
Capital assets, net
5,200,446
916,053
(59,413)
6,057,086
1,216,895
248,795
(522,867)
942,823
678,237
97,543
(17,500)
758,280
52,119,807
1,328,388
(9,372)
53,438,823
59,215,385
2590,779
609152
.61,197,012
43,025,230 20,313,171 (371,262) 62,967,139
56,467,549 17,174,110 (136,000) 73,505,659
230,148,147 4,131,876 - 234,280,023
29,604,242 21,512,556 (23,183,975) 27,932,823
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(5) Capital Assets Continued
Depreciation expense was charged in the following functions in the Statement of
Activities:
General government
$ 163,327
Public safety
461,038
Community services
498,000
Planning and development
31,821
Public works
1,436,593
Total 2 590 779
(6) Changes in Lon;; -Term Liabilities
Changes in long-term liabilities for the year ended June 30, 2004 were as follows:
Amounts
Balance at Balance at due within
June 30,_2003 Additions Deletions June 30, 2004 one year
City:
Compensated absences payable $ 462,260 591,451 (522,158) 531,553 478,398
Due to the Coachella Valley Association
of Governments 478,311 - (50,000) 428,311 50,000
Developer Agreement Payable 684,688 429,758 (103,758) 1,010,688 122,250
Redevelopment Agency:
RDA Project Area No. 1:
Tax allocation bonds
Housing tax allocation bonds
Pass-through agreements payable:
Coachella Valley Unified School District
RDA Project Area No. 2:
Tax allocation bonds
Housing tax allocation bonds
Due to County of Riverside
Financing Authority:
Revenue bonds
Total
118,803,164 25,594,464 (1,890,000) 142,507,628 2,395,000
16,026,850 - (16,026,850) - -
7,365,254 (711,877) 6,653,377 726,114
6,415,000 (90,000) 6,325,000 95,000
4,333,150 - (4,333,150) -
2,150,000 - (100,000) 2,050,000 100,000
7,190,000 87,924.343 300.000) 94,814,343 1,050,000
5163.908.677 114.540.016 (24.127.793) 2 4.320.9 4 1"
46
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
7) Due to the Coachella Valley Association of Governments
The City of La Quinta entered into an Interchange Reimbursement Agreement with the
Coachella Valley Association of Governments (CVAG) to finance capital improvements
at the Washington Street I-10 interchange. The City will reimburse CVAG $828,311 over
a period of seventeen years beginning July 31, 1996. The annual payments to CVAG
range from $28,311 to $50,000. At June 30, 2004, the balance is $428,311.
The minimum annual requirements to amortize payable to Coachella Valley Association
of Governments as of June 30, 2004 are as follows:
June 30 Principal,
2005
$ 50,000
2006
50,000
2007
50,000
2008
50,000
2009
50,000
2010
50,000
2011
50,000
2012
50,000
2013
28.311
8)_ Tax Allocation Bonds
As of June 30, 2004, the following issuances of Tax Allocation Bonds were outstanding:
Series 1994
Tax Allocation Refunding Bonds, Series 1994, were issued by the Agency on May 5,
1994, in the amount of $26,665,000 to refund the outstanding aggregate principal amount
of the Agency's Tax. Allocation Bonds, Series 1989 and 1990. The remaining proceeds
were used to finance certain capital improvements within the La Quinta Redevelopment
Project Area No. 1.
Interest rates on the bonds range from 3.80% to 8% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest on and principal of the
bonds are payable solely from pledged tax increment revenues. The bonds are not subject
to redemption prior to maturity. There are certain limitations regarding the issuance of
parity debt as further described in the official statement. A portion of the proceeds was
used to obtain a surety agreement to satisfy the bond reserve requirement. The principal
balance of outstanding bonds at June 30, 2404 is $17,085,000.
47
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
8) Tax Allocation Bonds, (Continued
Series 1998. Proiect Area No. 1
Tax allocation refunding bonds, Series 1998, in the amount of $15,760,000 were issued
by the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1991. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 1.
Interest rates on the bonds range from 5.20% to 5.25% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable from pledged tax increment revenues.
Term Bonds maturing September 1, 2028 are subject to mandatory sinking fund
redemption, in part by lot, on September 1, 2013 and on each September 1 thereafter,
through September 1, 2028, at a price equal to the principal amount thereof plus accrued
interest. There are certain limitations regarding the issuance of parity debt as further
described in the official statement. A portion of the proceeds was used to obtain a surety
agreement to satisfy the bond reserve requirement. The principal balance of outstanding
bonds at June 30, 2004 is $15,760,000.
Series 1998, Project Area No. 2
Tax allocation refunding bonds, Series 1998, in the amount of $6,750,000 were issued by
the Agency to refund the outstanding aggregate principal amount of the Agency's Tax
Allocation Bonds, Series 1992. The remaining proceeds were used to finance certain
capital improvements within the La Quinta Redevelopment Project Area No. 2.
Interest rates on the bonds range from 3.75% to 5.28% and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the
bonds are payable solely from pledged tax increment revenues of Project Area No. 2.
Term Bonds maturing September 1, 2028 and September 1, 2033 are subject to
mandatory sinking fund redemption, in part by lot, on September 1, 2009 and
September 1, 2019, respectively, and on each September 1 thereafter at a price equal to
the principal amount thereof plus accrued interest. There are certain limitations regarding
the issuance of parity debt as further described in the official statement. A portion of the
proceeds was used to obtain a surety agreement to satisfy the bond reserve requirement.
The principal balance of outstanding bonds at June 30, 2004 is $6,325,000.
48
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
Tax Allocation Bonds, Series 2001 — Project Area No. 1
On August 15, 2001, the Agency issued tax allocation bonds in the amount of
$48,000,000 to finance capital projects benefiting the La Quinta Redevelopment Project
Area No. 1. The 2001 tax allocation bonds were issued at a discount of $422,400 and
issuance costs of $1,517,325.
The bonds consist of $17,280,000 of term bonds that accrue interest at 5.00% and mature
on September 1, 2021 and $30,720,000 of term bonds that accrue interest at 5.18% and
mature on September 1, 2031. The interest and principal on the bonds are payable from
pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is
$46,254,248 ($48,000,000 net of unamortized discount and issuance costs of
$1,745,752).
Tax Allocation Bonds, Series 2002 — Project Area No. 1
On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000
to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1.
the 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs of
$1,250,096.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest
rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on
March 1 and September 1 of each year until maturity. Term bonds accrue interest at
5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The
interest and principal on the bonds are payable from pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2004 is
$37,932,244 ($39,435,000 net of unamortized discount and issuance costs of
$1,502,756).
Tax Allocation Bonds. Series 2003 - Project Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quinta Redevelopment Project
Area No. 1. The 2003 tax allocation bonds were issued at a discount of $277,200
issuance costs of $629,191.
49
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
Tax Allocation Bonds, Series 2003 - Project Area No. 1, (Continued)
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032 are subject to
mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity debt as
further described in the official statement. The principal balance of outstanding bonds at
June 30, 2004 is $25,594,464 ($26,400,000 net of unamortized discount and issuance
costs of $923,864).
The minimum annual requirement (including sinking fund requirements) to amortize tax
allocation bonds as of June 30, 2004 are as follows:
50
r i c&j 6
rea No, I
Proiect Area No. 2
1994 Tax Allocation Bonds
1998 Tax Allocation Bonds
2001 Tax Allocation Bonds 2002 Tan Allocation Bonds
2003 Tax Allocation Bonds
1998 Tax Allocation
June 30
I'TinciRal Interest
rir
In
Princitrsl
Interest
Principal
Interest
Principal
Interes
Prncinal
interest
2005
% 1.430.000 1.182.140
819.520
2.430.720
575.000
1.895.131
390.000
1.602.458
95.000
323.264
2006
1.510.000 1.087.700
819.520
2.430.720
585.000
1.882.361
405.000
1.585.604
100.000
319.168
2007
1.620.000 973.455
819.520
2.430.720
600.000
1.867.091
420.000
1.568.114
105.000
314.785
2008
1.740.000 850.815
819.520
2.430.720
615.000
1.849.617
440.000
1.549.882
110.000
310.135
2009
1.865.000 719.233
819.520
2.430.720
635.000
1.829.914
460.000
1.530.802
115.000
305.184
2010
2.000.000 578.160
819.520
2.430.720
660.000
1.807.557
475.000
1.508.106
120.000
299.550
2011
2.145.000 426.868
819.520
2.430.720
680.000
1.782.926
505.000
1.481.401
125.000
293.272
2012
2.305.000 264.443
819.520
2.430.720
705.000
1.756.430
530.000
1.453.198
130.000
286.737
2013
2.470.000 90.155
819.520
2.430.720
735.000
1.727.981
560.000
1.423.496
140.000
279.819
2014
655.000
802.490
1.565.000
2.391.595
705.000
1.695.656
590.000
1.392.158
145.000
272.516
2015
690.000
767.520
1.645.000
2.311.345
735.000
1.659.656
620.000
1.356.736
150.000
264.956
2016
725.000
730.730
1.730.000
2.226.970
770.000
1.622.031
660.000
1.316.800
160.000
257.013
2017
765.000
691.990
1.815.000
2.138.345
810.000
1.582.531
700.000
1.274.368
170.000
248.556
2018
800.000
651.300
1.905.000
2.045.345
855.000
1.540.906
745.000
1.229.284
175.000
239.716
2019
845.000
608.530
2.000.000
1.947.720
895.000
1.497.156
790.000
1.181.392
185.000
230.491
2020
890.000
563.420
2.100.000
1.845.220
940.000
1.451.281
840.000
1.130.536
195.000
220.631
2021
935.000
515.970
2.205.000
1.737.595
985.000
1.403.156
895.000
1.076.404
205.000
210.131
2022
985.000
466.050
2.315.000
1.624.595
1.035.000
1.352.656
950.000
1.018.840
215.000
199.106
2023
1.035.000
413.530
2.430.000
1.504.755
1.090.000
1.299.531
1.010.000
957.688
230.000
187.425
2024
1.090.000
358.280
2.555.000
1.377.637
1.140.000
1.243.069
1.075.000
892.636
240.000
175.087
2025
1.145.000
300.170
2.685.000
1.244.018
1.200.000
1.183.106
1.140.000
822.388
255.000
162.094
2026
1.205.000
239.070
2.820.000
1.103.640
1.265.000
1.119.941
1.215.000
746.557
265.000
148.444
2027
1.265.000
174.850
2.965.000
956.123
1.330.000
1.053.444
1.290.000
665.896
280.000
134.138
2028
1.330.000
107.380
3.120.000
800.955
1.395.000
983.615
1.375.000
580.083
295.000
119.044
2029
1.400.000
36.400
3.275.000
637.882
1.470.000
910.200
1.465.000
488.635
310.000
103.163
2030
3.445.000
466.523
3.015.000
795.272
1.555.000
391.391
325.000
86.494
20313.620.000
286.365
3.170.000
636.781
1.655.000
288.029
345.000
68.906
2032
3.805.000
97.027
3.335.000
470.091
1.765.000
177.905
360.000
50.400
2033
-
7.505.000
192.316
1.880.000
60.536
380.000
30.975
2034
$ 17.085.000 l
15-760 000
14 803.360
48.000 000
4R.620 135
39.435.000
40 09].403
26.400.000
30.751.323
400,000
6.325.000
10,500
6.151-70D
50
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
9] Revenue Bonds
1996 Lease Revenue Refunding Bonds
On November 15, 1996, the Authority issued $8,790,000 of 1996 Lease Revenue
Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the
amount of $8,200,000 and to provide funds for construction of remaining improvements
to the La Quinta Civic Center site.
The bonds consist of $3,630,000 of serial bonds and $5,160,000 of term bonds. The serial
bonds will accrue interest at rates between 3.70% and 5.30% and principal amounts
mature between October 1, 1997 to October 1, 2008 in amounts ranging from $285,000
to $380,000. The term bonds accrue interest at a rate of 5.55% and mature on October 1,
2018.
A surety agreement has been purchased to satisfy the bond reserve requirement. There are
certain limitations regarding the issuance of parity debt as further described in the official
statement. The amount of principal outstanding on the 1996 Lease Revenue Refunding
Bonds at June 30, 2004 is $6,890,000.
2004 aeries A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount
of $90,000,000 to finance projects benefiting low and moderate income housing in La
Quinta Redevelopment Project Area No. 1 and the La Quinta Redevelopment Project
Area No. 2 and to advance refund the Agency's Redevelopment Project Areas No. 1 and
2, 1995 Housing Tax Allocation Bonds. The 2004 local agency revenue bonds were
issued at a discount of $607,500, issuance costs of $944,653 and a premium of $476,496.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
September 1, 2004. Interest payments range from 3% to 5.25% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2024, September 1, 2029 and September 1, 2034
are subject to mandatory redemption from minimum sinking fund payments, in part by
lot, on September 1, 2017, September 1, 2025, and September 1, 2030, respectively, and
on each September 1 thereafter at a redemption price equal to the principal amount
thereof plus accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity debt as
further described in the official statement. The principal balance of outstanding bonds at
June 30, 2004 is $87,924,343 ($90,000,000 net of unamortized discount and issuance
costs of $2,075,657).
51
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(9) Revenue Bonds, (Continued)
The minimum annual requirements (including sinking fund requirements) to amortize
revenue bonds as of June 30, 2004 are as follows:
June 30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
1996 Lease Revenue
Pri• nclpal
Interest
315,000
366,220
330,000
350,575
345,000
333,865
360,000
315,880
380,000
296,450
400,000
275,280
420,000
252,525
445,000
228,521
470,000
203,130
495,000
176,351
525,000
148,046
555,000
118,076
585,000
86,441
615,000
53,141
650,000
18,038
_ 3.222539
52
2004 Series A Revenue Bonds
Principal
III tcrest
735,000
2,990,049
1,520,000
4,436,981
1,570,000
4,403,156
1,615,000
4,356,806
1,670,000
4,304,994
1,740,000
4,243,332
1,805,000
4,175,132
1,890,000
4,099,719
1,975,000
4,016,581
2,075,000
3,924,681
2,175,000
3,823,431
2,290,000
3,714,462
2,410,000
3,597,256
2,535,000
3,473,881
2,670,000
3,344,075
2,810,000
3,207,444
2,960,000
3,063,594
3,115,000
2,912,132
3,275,000
2,752,663
3,450,000
2,584,925
3,630,000
2,408,394
3,810,000
2,227,082
4,000,000
2,041,082
4,200,000
1,845,832
4,410,000
1,640,832
4,635,000
1,425,582
4,870,000
1,196,560
5,120,000
952,994
5,380,000
697,000
5.660.000
572.969
90,OQntM
-__.._68,433.621
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(i 0) Due to_County of Riverside
Project Area No. 2
Based on an agreement dated July 5, 1989 between the Agency and the County, until the
tax increment reaches $5,000,000 annually in Project Area No. 2, the Agency will pay to
the County 50% of the County portion of tax increment. At the County's option, the
County's pass-through portion can be retained by the Agency to finance new County
facilities or land costs that benefit the County and serve the La Quinta population. Per the
agreement, the Agency must repay all amounts withheld from the County, The tax
increment is to be paid to the County in amounts ranging from $100,000 to $250,000
over a payment schedule through June 30, 2015. Interest does not accrue on this
obligation. The balance at June 30, 2004 is $2,050,000.
The minimum annual requirements to amortize amounts due to the County of Riverside
as of June 30, 2004 are as follows:
June 30 Principal
2005
$ 100,000
2006
100,000
2007
100,000
2008
150,000
2009
200,000
2010
200,000
2011
200,000
2012
250,000
2013
250,000
2014
250,000
2015
250,000
53
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(I1) Pass-through Agreements Payable
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 a portion of tax increment revenue associated with properties within
District confines. Such payments are subordinate to other indebtedness of the Agency
incurred in furtherance of the Redevelopment Plan for Project Area No. 1. This tax
increment is paid to the District over a payment schedule through August 1, 2012, in
amounts ranging from $421,166 to $834,076, for a total amount of $15,284,042. Tax
increment payments outstanding at June 30, 2004 totaled $6,653,377. The District agrees
to use such funds to provide classroom and other construction costs, site acquisition,
school busses, and expansion or rehabilitation of current facilities.
The minimum annual requirements to amortize payable to Coachella Valley Unified
School District as of June 30, 2004 are as follows:
June 30 Principal
2005
$ 726,114
2006
740,636
2007
755,449
2008
770,558
2009
785,968
2010
801,688
2011
817,722
2012
834,076
2013
421.166
''-TITIMOM
(12) _ Developer Agreement Payable
In December 1998, the City entered into a tax sharing agreement with Stamko
Development Co. in relation to the development of an auto mall located within the City.
For a period of ten years, the agreement requires the City to make quarterly payments to
the developer in the amount of 33% of the sales and use tax revenues generated by the
site up to a maximum amount of $122,250 in any twelve month period. Additionally, if
the sales and use tax revenues generated exceed $530,000, adjusted annually by the CPI
index, the City is required to pay $76,411 for that year for a maximum of ten years, based
54
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(12) Developer Agreement Payable, (Continued}
upon a $500,000 note at an interest rate of 8.5%. During the year ended June 30, 2004,
the developer completed all the requirements to be entitled to begin receiving payments
from the City. For the year ended June 30, 2004, the City paid the developer $122,250 in
sales tax reimbursement and $76,204 since the sales tax generated exceeded the required
amount. The balance at June 30, 2004 is $390,050.
The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2004 are as follows:
June 30
Principal
Interest
Total
2005
$ 69,496
52,754
122,250
2006
75,403
46,847
122,250
2007
81,812
40,438
122,250
2008
88,766
33,484
122,250
2009
96,311
25,939
122,250
2010
104,498
17,752
122,250
2011
104,352
17.898
122.250
SLUM 235,112 855.750
(13) Debt Without Governmental Commitment
The City of La Quinta sold Improvement Bonds issued pursuant to the California State
Improvement Act of 1915. The Bonds are payable from the annual installments collected
on the regular property tax bills sent to owners of property having unpaid assessments
levied against land benefited by the projects. The Bonds are neither general obligations of
the City nor any other political subdivision and the full faith and credit of the City is not
pledged for repayment thereof. The City is not liable for repayment of the debt, but is
only acting as agent for the property owners in collecting the assessments and forwarding
the collections to bondholders. The Bonds do not constitute an obligation of the City;
therefore, they are not included in the long-term liability in the accompanying financial
statements. The following is a summary of Improvement Bonds outstanding at
June 30, 2004:
Amount Outstanding
Proceeds Maturity Date Interest Rate at June 30, 2004
Assessment District No. 90-1
$1,227,155
9/2/05
6.5%-7.00%
$ 155,000
Assessment District No. 91-1
2,240,866
9/2/06
6.70%-6.80%
420,000
Assessment District No. 92-1
1,880,891
9/2/08
5.00%-5.40%
680,000
Assessment District No. 97-1
705,262
9/2/18
4.10%-5.20%
600,000
Assessment District No. 2001-1
2,285,000
9/2/15
5.00%-6.60%
1,880,000
M
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
il4] Defined Benefit Pension Plan
Plan Description
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), an agent multiple -employer public employee defined benefit pension plan. PERS
provides retirement, disability benefits, and death benefits to plan members and
beneficiaries. PERS acts as a common investment and administrative agent for
participating public entities within the State of California. Copies of PERS' annual
financial report may be obtained from its executive office at 400 "P" Street, Sacramento,
California 95814.
Participants are required to contribute 7% of their annual covered salary. The City makes
the contributions required of City employees on their behalf and for their account.
Benefit provisions and all other requirements are established by state statute and town
contract with employee bargaining groups.
Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual
required contribution (ARC) plus an adjustment for the cumulative difference between
the APC and the employer's actual plan contributions for the year. The cumulative
difference is called the net pension obligation (NPO). The ARC for the period July 1,
2003 to June 30, 2004 has been determined by an actuarial valuation of the plan as of
June 30, 2001. The contribution rate indicated for the period is 0.000% of payroll for the
miscellaneous plan. In order to calculate the dollar value of the ARC for inclusion in
financial statements prepared as of June 30, 2004, this contribution rate would be
multiplied by the payroll of covered employees that was actually paid during the period
July 1, 2003 to June 30, 2004.
56
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
Ll 41 Defined Benefit Pension Plan Continued
A summary of principle assumptions and methods used to determine the ARC is shown
below.
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining Period
Asset Valuation Method
Actuarial Assumptions
Investment Rate of Return
Projected Salary Increases
Inflation
Payroll Growth
Individual Salary Growth
June 30, 2001
Entry Age Actuarial Cost Method
Level Percent of Payroll
16 Years as of the Valuation Date
3 Year Smoothed Market
8.25% (net of administrative expenses)
3.75% to 14.20% depending on Age,
Service, and type of employment
3.50%
3.75%
A merit scale varying by duration of
employment coupled with an assumed
annual inflation component of 3.5%
and an annual production growth of
0.25%.
Initial unfunded liabilities are amortized over a closed period that depends on the plan's
date of entry into Ca1PERS. Subsequent plan amendments are amortized as a level % of
pay over a closed 20 -year period. Gains and losses that occur in the operation of the plan
are amortized over a rolling period, which results in an amortization of 10% of
unamortized gains and losses each year. If the plan's accrued liability exceeds the
actuarial value of plan assets, then the amortization period may not be lower than the
payment calculated over a 30 year amortization period.
For the miscellaneous plan, the City was overfunded for the year ended June 30, 2004.
Amortization periods are not determined for overfunded plans.
The Schedule of Funding Progress below shows the recent history of the actuarial value
of assets, actuarial accrued liability, their relationship, and the relationship of the
unfunded accrued liability to payroll.
Funding Policy
Participants are required to contribute 7% of their annual covered salary. The City makes
the contributions required of City employees on their behalf and for their account. The
City is required to contribute at an actuarially determined rate. For the year ended
June 30, 2004, the rate was 0% of annual covered payroll. The contribution requirements
of plan members and the City are established and may be amended by PERS.
57
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(14) Defined Benefit Pension Plan, (Continued)
Annual Pension Cost
For 2004, the City's annual pension cost (employer contribution) in the amount of $0 was
equal to the City's required and actual contributions. The required contribution was
determined as part of the June 30, 2001, actuarial valuation using the entry age normal
actuarial cost method. The actuarial assumptions included (a) 8.25% investment rate of
return (net of administrative expenses), (b) projected annual salary increases that vary by
duration of service, and (c) 2% per year cost -of -living adjustments. Both (a) and (b)
included an inflation component of 4.5%. The actuarial value of PERS assets was
determined using techniques that smooth the effects of short-term volatility in the market
value of investments over a four-year period (smoothed market value). Any unfunded
actuarial accrued liability is amortized as a level percentage of projected payroll on a
closed basis. PERS combines the prior service unfunded liability and the current service
unfunded liability into a single initial unfunded liability. The single funding horizon for
the unfunded liability is June 30, 2011.
Miscellaneous Employees
Three -Year Trend Information
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC) APC Contributed Obligation
6/30/02 $1,369 100% -0-
6/30/03 0 100% -0-
6/30/04 0 100% -0-
Required Supplementary Information ($ amount in thousands)
Entry Age
Normal Actuarial Unfunded Annual UAAL
Accrued Value Liability/ Covered As a % of
Valuation Late Liability of Assets (Excess Assets) Funded Status PPoll Poll
06/30/00 $5,704,327 8,340,014 (2,635,687) 146.2% 3,146,845 (83.8%)
06/30/01 6,314,188 8,806,753 (2,492,565) 139.5% 3,349,776 (74.4%)
06/30/02 8,374,878 8,708,115 (333,237) 104.0% 3,783,079 (8.8%)
Information for the June 30, 2003 valuation date was not available for inclusion in the
financial statements.
58
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(15)_ Claims Payable/Selflnsurance
The City is a member of the California Joint Powers Insurance Authority (Authority).
The Authority is composed of 106 California public entities and is organized under a
joint powers agreement pursuant to California Government Code Section 6500, et seq.
The purpose of the Authority is to arrange and administer programs for the pooling of
self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group -
purchased insurance for property and other coverages. The Authority's pool began
covering claims of its members in 1978. Each member government has a representative
on the Board of Directors. The Board operates through a 9 -member Executive
Committee.
General Liability
Each member government pays a primary deposit to cover estimated losses for a fiscal
year (claims year). Six months after the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims year.
Costs are spread to members as follows: the first $30,000 of each occurrence is charged
directly to the city; costs from $30,001 to $750,000 are pooled based on a members share
of costs under $30,000; costs from $750,001 to $15,000,000 are pooled based on payroll.
Costs to covered claims above $15,000,000 are currently paid by reinsurance. The
protection for the City is $50,000,000 per occurrence and $50,000,000 annual aggregate.
Workers Compensation
The City also participates in the workers compensation pool administered by the
Authority. Pool deposits and retrospective adjustments are valued in a manner similar to
the General Liability pool. The City of La Quinta is charged for the first $10,000 of each
claim. Costs above that level are pooled to $50,000. Costs from $50,001 to $100,000 per
claim are pooled based on the City's losses under its retention level. Costs between
$100,001 and $2,000,000 per claim are pooled based on payroll. Costs between
$2,000,000 and $50,000,000 are paid by excess insurance purchased by the Authority.
Costs in excess of $50,000,000 are pooled by the members based on payroll.
During the past three fiscal years none of the above programs of protection have had
settlements or judgments that exceeded pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage provided for
the prior year.
Ms1
CITY OF LA QiJINTA
Notes to the Basic Financial Statements
(Continued)
(16} Contingencies
Various claims and suits have been filed against the City in the normal course of
operations. Although the outcome of these lawsuits is not presently determinable, in the
opinion of management, the resolution of these matters will not have a material adverse
effect on the financial position of the City.
(17) Educational Revenue Augmentation Fund (ERAF) PayMent
During fiscal year ended June 30, 2004, Chapter 1127 of the 2002 Statutes of the State of
California require redevelopment agencies to shift $135,000,000 in property tax revenue
to kindergarten through twelfth grade schools and community colleges. The State
Department of Finance has determined that the La Quinta Redevelopment Agency
amount is $1,467,995 of the $135,000,000, which was forwarded to the Riverside County
Auditor in accordance with the statute.
(18) Interfund Receivables and Payables
Current interfund receivables and payables balances at June 30, 2004 are as follows:
Due from other funds Due to other funds Amount
General Fund Other governmental funds $ 26,580 (A)
Capital Improvement Fund Other governmental funds 2,756,703 (B)
Capital Improvement Fund Other governmental funds 2 8 283
(A) Short term borrowing to cover temporary cash shortfalls.
(B) Short term borrowing to cover June 2004 construction project expenditures.
Noncurrent interfund receivable and payable balances at June 30, 2004 are as follows:
Advances to other funds Advances from other funds
General Fund RDA Debt Service — PA No. 1
RDA Debt Service — PA No. 2
Subtotal
RDA Capital Projects — PA No. 1 Other governmental funds
Other governmental funds Other governmental funds
Total
60
Amount
$12,335,283 (C)
16,335,800 (D)
28,671,083
4,075,463 (E)
1,260.695 (F)
3400.7,24.1
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(18) Interfund Receivables and Payables. (Continued)
(C) As of June 30, 2004, the amount due to the General Fund From RDA Debt
Service — PA No. 1 was $12,335,283. This consists of an outstanding advance of
$5,938,154 loaned to the Redevelopment Agency with no required repayment
date and accrues interest at 10% per annum. Also, in April 2003, the General
Fund advanced $6,105,000 to the RDA Debt Service PA No. 1 to provide funding
for capital projects within the project area As of June 30, 2404, the outstanding
advance amount is $6,397,129. The advance accrues interest at 7% per annum
and is to be repaid by November 29, 2033.
(D) As of June 30, 2004, the amount due to the General Fund From RDA Debt
Service — PA No. 2 was $16,335,283. This consists of an outstanding advance of
$10,535,800 loaned to the Redevelopment Agency with no required repayment
date and accrues interest at 10% per annum.
In June 2004, an advance of $5,800,000 was made to provide funding for
purchase of land for affordable housing and commercial development. The
advance accrues interest at 7% per annum and is to be repaid by the date of the
sale of the commercial property or May 1, 2030, whichever comes first.
(E) In January 2002, the Redevelopment Agency Capital Projects — PA No. 1 Fund
advanced $2,448,263 to the Parks and Recreation Fund to provide funding for
civic center campus improvements. The advance accrues interest at the earnings
rate of the City's investment pool funds. Annual installments due July 31, 2002
and 2003 shall not be less than the amount of park facility developer impact fees
collected by the City during the period to which a particular installment payment
applies.
In July 2002, another advance of $1,908,192 was made to provide funding for the
development of the publicly owned improvements to the La Quinta Community
Park. Annual payments will be determined by City Council. The remaining
balance of these advances at June 30, 2004 is $4,075,463.
(F) In February 2003, the Redevelopment Agency Capital Projects — PA No. 2 Fund
advanced $1,500,000 to the Fire Facility Fund to provide funding for the
development of the City's north fire station. The advance accrues interest equal
to the earning rate of the City's Investment Pool Funds and is to be repaid by the
year 2039. As of June 30, 2004, the remaining balance of the advances at June 30,
2004 is $1,260,695.
61
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(19) Construction_ Commitments
The following material construction commitments existed at June 30, 2004:
f 203 Interfund Transfers
Interfund transfers were as follows for the year ended June 30, 2004:
Transfer In Transfer Out Amount
General Fund Non -Major Funds $ 183,289
RDA Debt Service — PA No. 1 Fund Non -Major Funds 18,693,322 (A)
RDA Debt Service — PA No. 2 Fund Non -Major Funds 4,922,224 (B)
Subtotal RDA Debt Service — PA No. 2 Fund
Capital Improvement Fund
Expenditures as of
Remaining
Project Name
June 30, 2004
Commitments
Silver Rock Resort
$11,378,482
36,198,543
Phase 2 — Jefferson Street Improvements (Hwy. 111)
5,750,929
7,128,094
Vista Dunes Mobile Home Park
3,096,325
3,308,134
Municipal Library
328,480
4,555,587
Phase 2 — Washington Street Improvements and
RDA Debt Service — PA No. 2 Fund
5,800,000 (F)
Median Landscaping
80,130
1,334,038
f 203 Interfund Transfers
Interfund transfers were as follows for the year ended June 30, 2004:
Transfer In Transfer Out Amount
General Fund Non -Major Funds $ 183,289
RDA Debt Service — PA No. 1 Fund Non -Major Funds 18,693,322 (A)
RDA Debt Service — PA No. 2 Fund Non -Major Funds 4,922,224 (B)
Subtotal RDA Debt Service — PA No. 2 Fund
Capital Improvement Fund
General Fund
957,002
Capital Improvement Fund
2004 Low/Moderate Bond Fund
8,669,035 (C)
Capital Improvement Fund
Non -Major Funds
34,999,311 (D)
Subtotal Capital Improvement Fund
44,625,348
RDA Capital Projects — PA No. I Fund
Capital Improvement Fund
14,064,243 (E)
Non -Major Funds
General Fund
2,000
Non -Major Funds
RDA Debt Service — PA No. 2 Fund
5,800,000 (F)
2004 Low/Moderate Bond Fund
Non -Major Funds
66,323,236 (G)
62
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(29) Interfund Transfers, (Continued)
The following describes the major transfers in and transfers out included in the financial
statements:
Transfers to Major Funds
(A) $16,961,867 was transferred to the RDA Debt Service — PA No. 1 Fund from the
2004 Financing Authority Capital Projects fund to provide funding for the
defeasance of a portion of the 1995 :Housing Tax Allocation Bonds. $1,731,455
was transferred to the RDA Debt Service — PA No. 1 Fund from the Low and
Moderate Income Housing Fund — Project Area No. 1 Fund for debt service
payments on amounts due to the 1995 Housing Tax Allocation Bonds.
(B) $4,584,240 was transferred to the RDA Debt Service — PA No. 2 Fund from the
2004 Financing Authority Capital Projects Fund to provide funding for the
defeasance of a portion of the 1995 Housing Tax Allocation Bonds.
(C) $8,669,035 was transferred to the Capital Improvement Fund from the 2004
Financing Authority Bond Fund for the production of low and moderate income
housing units.
(D) $19,777,414 was transferred to the Capital Improvement Fund from RDA Capital
Projects — PA No. 1 Taxable Fund to fund the construction of the SilverRock
resort capital project. $5,623,614 was transferred to the Capital Improvement
Fund from the RDA Capital Projects — PA No. 2 Fund for various capital projects.
(E) $14,064,243 was transferred to the Capital Improvement Fund from the RDA
Capital Projects — PA No. 1 Fund for various capital projects.
(F) $5,800,000 was transferred to the RDA Capital Projects — PA No. 2 Fund from
the RDA Debt Service — PA No. 2 Fund to purchase property in the Project Area.
(G) $66,323,236 was transferred to the 2004 Financing Authority Bond Fund from the
2004 Financing Authority Capital Projects Fund to fund the production of low and
moderate income housing units.
63
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(21) Fund Deficits
The following fund had a deficit balance at June 30, 2004:
Special Revenue Fund:
Federal Assistance
Debt Service Fund:
Redevelopment Agency — PA No. 2
Capital Projects Fund:
Parks and Recreation
Fire Facility
Redevelopment Agency — PA No. 2
10,073
11,104,297
3,861,652
1,260,889
The deficit was created by outstanding advances from the General Fund which are
intended to be paid back in the future with anticipated tax increment revenues.
Parks and Recreation
The deficit was created by outstanding advances from Capital Projects Funds — PA No. 1
and 2 to accelerate park projects. The advances are intended to be paid back in the future
with future park developer impact fee collections.
Fire Facility
The deficit was created by transfers to the Capital Improvements Capital Projects Fund
for the construction of a fire station. The cost for the current year exceeded the developer
fees collected in this fund.
(22) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2004 exceeded the appropriations of the
following funds/departments:
64
Budget
Actual
Variance
General Fund:
City Manager
$523,646
562,001
(38,355)
Building
868,139
1,131,823
(263,684)
Civic Center Building
467,714
484,455
(16,741)
Parks and Recreation Programs
100,048
135,285
(35,237)
Capital Projects Administration
127,263
565,551
(438,288)
64
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(22) Expenditures in Excess of Apgropriations, (Continued)
Budget Actual Variance
Special Revenue Funds:
South Coast Air Quality 14,827 17,386 (2,559)
Capital Projects Funds:
Parks and Recreation - 103,476 (103,476)
Civic Center 204,251 207,156 (2,905)
Redevelopment Agency Project Area No. 1 115,953 174,152 (58,199)
(23) Conduit Debt Financing
2002 Series A Variable Rate Multifamily Housing Revenue Bonds
In March 2002, the La Quinta Redevelopment Agency issued $5,000,000 of 2002 Series
A Variable Rate Multifamily Housing Revenue Bonds to provide financing for the
acquisition, construction and equipping of a multifamily senior rental housing project
known as Miraflores Apartments located in the City of La Quinta. The bonds mature on
May 15, 2035. Outstanding bonds at June 30, 2004 are $5,000,000.
The bonds are secured solely by the credit facility, Fannie Mae, and by a pledge of the
trust estate comprised of bond proceeds and property. The bonds are not obligations of
the issuer, but payable solely from the security.
2002 Series B Multifamily Housing Revenue Bonds
In April 2002, the La Quinta Redevelopment Agency issued $3,000,000 of 2002 Series B
Multifamily Housing Revenue Bonds to provide financing for the acquisition,
construction and equipping of a multifamily senior rental housing project known as
Miraflores Apartments located in the City of La Quinta. The bonds mature on June 1,
2035 and bear interest at 5.5% per annum. Outstanding bonds at June 30, 2004 are
$3,000,000.
The bonds are secured solely by the credit facility, Fannie Mae, and by a pledge of the
trust estate comprised of bond proceeds and property. The bonds are not obligations of
the issuer, but payable solely from the security.
65
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(24) Unreserved Fund Balances
Unreserved fund balances at June 30, 2004 consisted of the following:
Capital
Debt Service Projects Other
General Financing RDA RDA Governmental
Fund Autbority PA No. 2 PA No. 1 Funds
Designated for:
Emergency reserve $11,915,000
Cash flows 2,175,000
Operations/projects/
transfers 11,404,479
Undesignated -
Total unreserved fund
balances (deficit) 25.494.479
Total
11,915,000
2,175,000
- _ _ - 11,404,479
5,052 (11,104,297) 14,055.851 23,830.848 26.787,454
5.052 O I$ X3.830,848 2 2 I
Rf1
REQUIRED SUPPLEMENTARY INFORMATION
fyi
GENERAL FUND
GENERAL FUND - The primary fund of the City used to account for all revenue and
expenditures of the City not legally restricted as to use. A broad range of municipal activities are
provided through this fund including City Manager, City Attorney, Finance., City Clerk,
Community Development, Police Services, Public Works, Building and Safety, and Community
Services.
68
CITY OF LA QUINTA
Notes to Required Supplementary Information
Year ended June 30, 2004
(1) Budgets and Budgetary Accounting
The City adopts an annual budget prepared on the modified accrual basis of accounting
for its governmental funds and on the accrual basis of accounting for its proprietary
funds. The City Manager or his designee is authorized to transfer budgeted amounts
between the accounts of any department. Revisions that alter the total appropriations of
any department or fund are approved by City Council. Additional appropriations in the
amount of $32,573,559 were made during the year. Prior year appropriations lapse unless
they are approved for carryover into the following fiscal year. Expenditures may not
legally exceed appropriations at the department level. Reserves for encumbrances are not
recorded by the City of La Quinta.
(2) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2004 exceeded the appropriations of the
following funds/departments:
69
Budget
Actual
Variance
General Fund:
City Manager
$523,646
562,001
(38,355)
Building
868,139
1,131,823
(263,684)
Civic Center Building
467,714
484,455
(16,741)
Parks and Recreation Programs
100,048
135,285
(35,237)
Capital Projects Administration
127,263
565,551
(438,288)
69
Revenues:
Taxes
Licenses and permits
Charges for services
Intergovernmental
Investment income
Miscellaneous
Total revenues
Expenditures:
General government:
Legislative
City manager
Economic development
Personnel
Fiscal services
Central services
City clerk
Total general government
Public safety:
Police
Building and safety
administrative
Code compliance
Animal control
Building
Emergency services
Fire
Civic center building
Total public safety
Community services:
Senior center
Parks and recreation
administration
Parks and recreation programs
Total community services
CITY OF LA QUINTA
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Budget
Ori inal. Final
Variance with
Final Budget
Actual Positive (Negative)
$ 10,721,600
10,721,600
13,184,050
857,500
1,087,500
3,096,145
1,404,023
1,080,123
2,619,578
4,073,400
4,679,563
4,895,986
1,468,800
2,417,882
2,335,154
3,000
- _
109,388
18,528,323 19,986,668 26,240,301
677,100
919,600
640,438
580,556
523,646
562,001
772,850
821,350
720,748
631,002
631,502
584,127
496,651
456,038
440,735
501,562
748,086
613,912
347.963
358,463
330,259
4,007,684 4,458,685 3,892_,220
5,186,869 5,293,749 5,285,180
209,425
209,425
203,616
655,449
655,449
520,714
229,922
229,922
188,718
680,639
868,139
1,131,823
48,945
48,945
26,316
2,180,000
2,342,380
1,831,358
443,714
467,714
484,455
9,634,963 10,115,723 9,672,180
324,574 347,635 312,606
2,462,450
2,008,645
1,539,455
216,423
(82,728)
109,388
6,253,633
279,162
(38,355)
100,602
47,375
15,303
134,174
28,204
566,465
8,569
5,809
134,735
41,204
(263,684)
22,629
511,022
(16,741)
443,543
35,029
Prior
Year
Actual
11,572,985
1,982,127
2,302,759
4,394,046
1,894,303
87,236
22,233,456
562,397
424,596
774,128
376,300
375,027
331,493
296.635
3,140,576
4,485,189
178,681
521,909
170,115
867,135
23,159
1,525,113
431,107
8,202,408
269,386
574,520
765,246
577,506
187,740
619,777
100,048
100,048
135,285
(35,237)
102,395
999,142
1,212,929
1,025,397
187,532
991,558
(Continued)
Planning and development:
Community development
administration
Current planning
Total planning
and development
Public works:
Public works administration
Development and traffic
Maintenance/operations - St.
Maintenance/operations - L & L
Capital projects administration
Total public works
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balance
Fetid balance at beginning of year
Fund balance at end of year
CITY OF LA QUINTA
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
(Continued)
Budget
Original Final Actual
Variance with
Prior
Final Budget
Year
Positive (Negative)
Actual
416,160
710,352
350,514
359,838
280,908
447,777
591,429
399,930
191,499
393,542
863,937
1,301,781
750,444
551,337
674,450
182,218
154,509
91,738
753,443
1,131,325
1,046,022
582,196
1,703,252
501,650
1,077,008
1,147,142
898,833
351,248
127,263
565,551
2,946,113
4,263,491
3,103,794
18,451,839
21,352,609
18,444,035
62,771
139,120
85,303
1,060,949
1,201,602
181,228
248,309
789,483
(438,288)
140,656
1,159,697 2,311,436
2,908,574 15,320,428
76,484
(1,365,941)
7,796,266
9,162,207
6,913,028
130,000
302,989
183,289
(119,700)
162,398
(200,454)
(1,736,853)
(959,002)
777,851
(270,346)
(70,454) (1,433,864) (775,713)
6,030 (2,799,805) 7,020,553
47,684,683 47,684,683 47,684,683
S 47,690,713 44,884,878 54,705,236
71
658,151 (107,948)
9,820,358 6,805,080
- 40,879,603
9,820,358 47,684,683
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72
SUPPLEMENTARY SCHEDULES
73
CITY OF LA QUINTA
Non -Maj or Governmental Funds
Combining Balance Sheet
June 30, 2004
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
Fund balances:
Reserved for:
Notes receivable
Deposits
Unreserved:
Designated for
capital projects
Undesignated
Total fund balances
Total liabilities and
fund balances
$ 22,129,042 23,932,213 46,061,255 36,428,775
$ 46,046
Special
Capital
78,363
10,618,102
-
Revenue
Projects
Totals
27,835
Funds
Funds
2004
2003
Assets
21,694
36,346
2,746,937
2,783,283
Cash and investments
$ 9,128,781
14,014,300
23,143,081
22,215,751
Cash with fiscal agent
-
8,545,446
8,545,446
17
Accounts receivable
83,642
63,104
146,746
139,347
Interest receivable
33,377
48,668
82,045
-
Notes receivable
12,741,527
-
12,741,527
12,613,565
Due from other governments
141,715
-
141,715
165,249
Advances to other funds
-
1,260,695
1,260,695
1,109,846
Deposits
-
-
-
185,000
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total liabilities
Fund balances:
Reserved for:
Notes receivable
Deposits
Unreserved:
Designated for
capital projects
Undesignated
Total fund balances
Total liabilities and
fund balances
$ 22,129,042 23,932,213 46,061,255 36,428,775
$ 46,046
16,894
62,940
78,363
10,618,102
-
10,618,102
10,495,979
18,664
27,835
46,499
47,143
-
-
-
21,694
36,346
2,746,937
2,783,283
72,378
-
5,336,158
5,336,158
4,921,720
10,719,158 8,127,824 18,846,982 15,637,277
2,123,425 - 2,123,425 12,613,565
- - - 185,000
- 23,673,560 23,673,560 9,106,480
9,286,459 (7,869,171 1,417,288 (1,113,547
11,409,884 15,804,389 27,214,273 20,791,498
$ 22,129,042 23,932,213 46,061,255 36,428,775
74
CITY OF LA QUINTA
Non -Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2004
Other financing sources (uses):
Issuance of tax allocation bonds
Special
Capital
26,400,000
Issuance of revenue bonds
Revenue
Projects
Totals
-
Transfers in
Funds
Funds
2004
2003
Revenues:
(8,215,378)
0116,906,003)
(125,121,381)
(14,577,346)
Taxes
$ 9,023,407
-
9,023,407
7,750,765
Developer fees
1,273,832
4,444,241
5,718,073
3,021,245
Intergovernmental
831,259
200,000
1,031,259
861,001
Investment income
141,461
343,319
484,780
549,082
Special assessments
816,045
-
816,045
780,259
Rental income
431,178
-
431,178
376,863
Miscellaneous
1,087,465
-
11087,465
280,752
Total revenues
13,604,647
4,987,560
18,592,207
13,619,967
Expenditures:
Current:
General government
-
207,156
207,156
203,831
Public safety
528
-
528
142,020
Community services
-
-
-
2,406
Planning and development
4,171,309
174,152
4,345,461
5,094,500
Public works
1,369,745
63,050
1,432,795
1,373,614
Capital outlay
124,821
-
124,821
111,945
Debt service:
Principal
-
113,662
113,662
-
Interest
-
-
-
52,523
Fiscal charges
-
3,025,628
3,025,628
-
Total expenditures
5,666,403
3,583,648
9,250,051
6,980,839
Excess (deficiency) of
revenues over (under)
expenditures
7,938,244
1,403,912
9,342,156
6,639,128
Other financing sources (uses):
Issuance of tax allocation bonds
-
26,400,000
26,400,000
Issuance of revenue bonds
-
90,000,000
90,000,000
-
Transfers in
2,000
5,800,000
5,802,000
1,310,913
Transfers out
(8,215,378)
0116,906,003)
(125,121,381)
(14,577,346)
Total other financing
sources (uses)
(8,213,378)
5,293,997
(2,919,381)
(13,266,433
Net change in fund balances
(275,134)
6,697,909
6,422,775
(6,627,305)
Fund balances at
beginning of year 11,685,018 9,106,480 20,791,498 27,418,803
Fund balances at end of year $ 11,409,884 15,804,389 27,214,273 20,791,498
75
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76
NON -MAJOR 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 that are legally required to be accounted for
in a separate fund.
The City of La Quinta has the following Special Revenue Funds:
State Gas Tax Fund - To account for gasoline allocations made by the State of California. These
revenues are restricted by the State to expenditures for street -related purposes only.
Federal Assistance Fund - To account for revenues from the Community Development Block
Grants received from the Federal Government and the expenditures of those resources.
Lighting and Landscape Special Assessment District 89-1 Fund - To account for special
assessments levied on real property and the expenditure thereof from City-wide lighting and
landscape maintenance and improvements.
State Law Enforcement Block Grant (SLEBG) Fund - To account for state funded "Citizens for
Public Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements
frontline police services such as anti -gang community crime prevention.
Quimby Fund - To account for the accumulation of developer fees received under the provisions
of the Quimby Act for park development and improvements. Capital projects to be funded from
this source will be budgeted and expended in a separate capital projects fund.
La Quinta Public Safety Officer Fund - To account for contributions to be distributed to public
safety officers disabled or killed in the line of duty.
Arts in Public Places — To account for development fees paid in lieu of acquisition and
installation of approved artworks in a development with expenditures restricted to acquisition,
installation, maintenance and repair of artworks at approved sites.
South Coast Air Quality Fund - To account for contributions from the South Coast Air Quality
Management District. Use of such contributions is limited to reduction and control of airborne
pollutants.
ISTEA Fund — To account for funds provided by the Intermodal Surface Transportation Act.
Funds are designated for use on transportation -related projects.
Local Law Enforcement Block Grant (LLEBG) Fund - To account for Federal Bureau of Justice
Block Grant program, which may be used for the purpose of reducing crime and improving
public safety.
Coachella Valley Violent Crime Task Force Fund — To account for the activities of the Coachella
Valley Violent Crime Task. Force.
Redevelopment Agency, Low and Moderate Income Housing P.A. No. 1 and No. 2 Funds - To
account for the required 20% set aside of property tax increments that is legally restricted for
increasing or improving housing for low and moderate income households.
Low and Moderate Bond Fund P.A. No. 1 Fund - To account for bond
s of bond -financed low and moderate income housing programs.
77
Assets
Cash and investments
Cash with fiscal agent
Accounts receivable
Interest receivable
Notes receivable
Due from other
governments
Deposits
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other governments
Due to other funds
Total liabilities
Fund balances:
Reserved for:
Notes receivable
Deposits
Unreserved
Total fund balances
Total liabilities and
fund balances
CITY OF LA QUINTA
Non -Major Special Revenue Funds
Combining Balance Sheet
June 30, 2004
Lighting Arts in
State Federal and Public Public South Coast
Gas Tax Assistance Landscape SLEBG Quimby Safety Places Air Quality
$ 408,042 - -
1,492
26,273
$ 409,534 - 26,273
592,809 8,377 761,725 123,395
- - - 2,963 466
2,226 36
- 9,278
595,035 8,413 764,688 133,139
$ - - - - - - - 3,093
10,073 26,273 - - - - -
10,073 26,273 - - - - 3,093
409,534 10,073 - - 595,035 8,413 764,688 130,046
409,534 10,073 - - 595,035 8,413 764,688 130,046
$ 409,534 - 26,273 - 595,035 8,413 764,688 133,139
78
Low/
Low/
52,010
- 1,118,102 9,500,000
10,618,102
Moderate
Moderate
Low/
19,308
- - - - -
CV Violent Income
Income
Moderate
36,346
54,300
Crime Task Housing-
Housing-
Bond-
Totals
ISTEA LLEBG Force PA No. 1
PA No. 2
PA No. 1
2004
2003
- _ - 1,588,670
5,645,763
-
9,128,781
9,286,031
- - - -
-
-
17
- - 71,713
8,500
-
83,642
78,447
7,370
22,253
33,377
-
- - 3,241,527
9,500,000
-
12,741,527
12,613,565
- - - 58,936
47,228
141,715
165,249
- - - -
-
-
-
185,000
- 4,968,216
15,223,744
-
22,129,042
22,328,309
- - 21,302 21,651
46,046
52,010
- 1,118,102 9,500,000
10,618,102
10,495,979
- 18,664 -
- 18,664
19,308
- - - - -
- -
21,694
- - - -
36,346
54,300
- 1,158,068 9,521,651
- 10,719,158
10,643,291
2,123,425 - - 2,123,425 12,613,565
- - - 185,000
- - 1,686,723 5,702,093 - 9,286,459(1,113,547)
- - 3,810,148 5,702,093 11,409,884 11,685,018
- - - 4,968,216 15,223,744 22,129,042 - 22,328,309
79
CITY OF LA QUINTA
Non -Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2004
Lighting Arts in
Gas Federal and Public Public
Tax Assistance Landscape SLEBG Quimby Safety Places
Revenues:
Taxes $ - - - - - -
Developer fees - - - 344,198 - 287,054
Intergovernmental 605,143 30,000 - 100,000 - - -
Investment income 7,116 - - 122 8,387 159 13,578
Special assessments - - 816,045 - - - -
Rental income - - -
Miscellaneous
Total revenues 612,259 30,000 816,045 100,122 352,585 159 300,632
Expenditures:
Current:
Public safety - - - - - - -
Community services - - - - - - -
Planning and
development - - - -
Public works 553,700 - 816,045 - - - -
Capital outlay - - - - - - 124,821
Total expenditures 553,700 - 816,045 - - - 124,821
Excess (deficiency) of
revenues over (under)
expenditures
58,559
30,000
Other financing sources (uses):
Transfers in
-
-
Transfers out
23,725
32,753
Total other financing
sources (uses)
23,725
(32,753)
Net change in fund balances
34,834
(2,753)
Fund balances at
beginning of year
374,700
7,320)
Fund balances (deficit)
- 100,122 352,585 159 175,811
- - - 2,000 -
107,974) 146,321 -(19,166
107,974 146,321 2,000 19,166
(7,852) 206,264 2,159 156,645
7,852 388,771 6,254 608,043
at end of year $ 409,534 (10,073) - - 595,035 8,413 764,688
80
1,369,745 1,373,614
124,821 111,948
17,386 - - 528 3,591,028 562,895 - 5,666,403 6,506,886
20,134 41,450
19,741
528 3,645,058
Low/
Low/
7,938,244
4,076,739
Moderate
Moderate
Low/
- -
_
-
2,000
CV Violent
Income
Income
Moderate
(3,775,970)
74,623
South Coast
(6,696,134)
Crime Task
Housing-
Housing-
Bond-
Totals
Air Quaility
ISTEA LLEBG
Force
PA No. 1
PA No. 2
PA No. 1
2004
2003
-
-
-
5,991,739
3,031,668
-
9,023,407
7,750,765
-
- -
-
20,275
622,305
-
1,273,832
319,970
35,448
41,450 19,218
-
-
-
-
831,259
859,001
2,072
- 523
-
-
109,504
-
141,461
216,015
-
-
-
-
-
-
816,045
780,259
-
- -
-
367,598
63,580
-
431,178
376,863
a - -
-
856,474
230,991
1,087,465
280,752
37,520
41,450 19,741
-
7,236,086
4,058,048
13,604,647
10,583,625
-
- -
528
-
-
-
528
142,020
-
- -
-
-
-
-
-
2,406
17,386
- -
-
3,591,028
562,895
-
4,171,309
4,876,898
1,369,745 1,373,614
124,821 111,948
17,386 - - 528 3,591,028 562,895 - 5,666,403 6,506,886
20,134 41,450
19,741
528 3,645,058
3,495,153
-
7,938,244
4,076,739
- -
-
- -
_
-
2,000
2,000
- 41,450
45,316
- (3,948,080)
(3,775,970)
74,623
(8,215,378)
(6,696,134)
- 41,450
45,316
- 3,948,080
(3,775,970)
74,623
(8,213,378)
(6,694,134)
20,134 -
(25,575)
(528) (303,022)
(280,817)
(74,623)
(275,134)
(2,617,395)
109,912 -
25,575
528 4,113,170
5,982,910
74,623
11,685,018
14,302,413
130,046 - n
-
- 3,810,148
5,702,093
-
11,409,884
11,685,018
81
CITY OF LA QUINTA
Special Revenue Funds
State Gas Tax Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Budget
Original Final
Revenues:
Intergovernmental $
546,100
506,800
Investment income
7,600
7,600
Total revenues
553,700
514,400
Expenditures:
Current:
Public works
553,700
553,700
Total expenditures
553,700
553,700
Excess (deficiency) of revenues
over (under) expenditures
-
(39,300)
Other financing sources (uses):
Transfers out
-
(205.206)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
- (244,506)
374,700 374,700
$ 374,700 130,194
82
Variance with
Final Budget
Actual Positive (negative)
605,143
7,116
612,259
553,700
553,700
58,559
(23,725
34,834
374,700
409,534
98,343
(484)
97,859
Prior
Year
Actual
558,086
7,985
566,071
- 569,900
- 569,900
97,859 (3,829)
181,481
279,340
279,340
(3,829)
378,529
374,700
CITY OF LA QUINTA
Special Revenue Funds
Federal Assistance Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Intergovernmental
Total revenues
Other financing sources (uses):
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit) at
beginning of year
Fund balances (deficit) at end of year
Variance with
Budget Final Budget
Original Final Actual Positive (negative)
$ 165,000 339,427
165,000 339,427
30,000 (309,427)
30,000 309,427
(30,000)
(331,932)
32,753
299,179
(30,000)
(331,932
3( 2,753)
299,179
135,000
7,495
(2,753)
(10,248)
7,320) (7,320) 7,320
$ 127,680 175 (10,073)
83
Prior
Year
Actual
30,000
30,000
37,320
37,320
(7,320)
(10,248) (7,320}
CITY OF LA QUINTA
Special Revenue Funds
Lighting and Landscape Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Special assessments
Total revenues
Expenditures:
Current:
Public works
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budget
Original Final
$ 854,600 854,600
854,600 854,600
854,600 854,600
854,600 854,600
Variance with
Prior
Final Budget
Year
Actual Positive (negative)
Actual
816,045 (38,555)
780,259
816,045 (38,555
780,259
816,045 38,555 803,714
816,045 38,555 803,714
- - (23,455)
23,455
CITY OF LA QUINTA
Special Revenue Funds
State Law Enforcement Block Grant Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
85
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Intergovernmental
$ 100,000
100,000
100,000
-
100,713
Investment income
700
700
122
(578)
279
Total revenues
100,700
100,700
100,122
(578)
100,992
Other financing sources (uses):
Transfers out
-
(107,926
(107,974)
(48
(100,287
Total other financing
sources (uses)
-
107,926)
107,974)
(48)
100,287
Net change in fund balances
100,700
(7,226)
(7,852)
(626)
705
Fund balances at beginning of year
7,852
7,852
7,852
-
7,147
Fund balances at end of year
$ 108,552
626
-
626
7,852
85
CITY OF LA QUINTA
Special Revenue Funds
Quimby Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Developer fees
Investment income
Total revenues
Other financing sources (uses):
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
$ 25,000
25,000
344,198
319,198
91,926
3,900
3,900
8,387
4,487
9,103
28,900
28,900
352,585
323,685
101,029
-
(301,583)
146,321
155,262
(74,928)
-
301,583
(146,321)
155,262
(74,928)
28,900
(272,683)
206,264
478,947
26,101
388,771
388,771
388,771
-
362,670
$ 417,671
116,088
595,035
478,947
388,771
CITY OF LA QUINTA
Special Revenue Funds
Public Safety Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Investment income $
300
300
159
Total revenues
300
300
159
Expenditures:
Current:
Public safety
-
2,000
-
Total expenditures
-
2.000
-
Excess (deficiency) of revenues
over (under) expenditures
300
(1,700)
159
Other financing sources (uses):
Transfers in
-
2,000
2,000
Total other financing
sources (uses)
2,000
2,000
2,000
Net change in fund balances
2,300
300
2,159
Fund balances at beginning of year
6,254
6,254
6,254
Fund balances at end of year $
8,554
6,554
8,413
E:I11
(141) 289
(141) 289
2,000 10,000
2,000 10,000
1,859 9,711
2,000
- 2,000
1,859 (7,711)
- 13,965
1,859 6,254
CITY OF LA QUINTA
Special Revenue Funds
Arts in Public Places Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Other financing sources (uses):
Transfers out
- (285,153
19,166
265,987(200,108
Variance with
Prior
156,645
Budget
Fund balances at beginning of year
608,043 608,043
Final Budget
Year
Fund balances at end of year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 97,500
97,500
287,054
189,554
228,044
Investment income
5,100
5,100
13,578
8,478
13,374
Total revenues
102,600
102,600
300,632
198,032
241,418
Expenditures:
Current:
Community services
-
-
-
-
2,406
Capital outlay
330,540
507,709
124,821
382,888
111,948
Total expenditures
330,540
507,709
124,821
382,888
114,354
Excess (deficiency) of revenues
over (under) expenditures
227,940
(405,109)
175,811
580,920
127,064
Other financing sources (uses):
Transfers out
- (285,153
19,166
265,987(200,108
Net change in fund balances
(227,940) (690,262)
156,645
846,907 (73,044)
Fund balances at beginning of year
608,043 608,043
608,043
- 681,087
Fund balances at end of year
$ 380,103 (82,219)
764,688
846,907 608,043
CITY OF LA QUINTA
Special Revenue Funds
South Coast Air Quality Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Intergovernmental
Investment income
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
- 14,827
17,386
14,827
Variance with
Budget
20,134
109,912 109,912
Final Budget
Original
Final
Actual
Positive (negative)
$ 21,800
238,204
35,448
(202,756)
2,000
2,000
2,072
72
23,800
240,204
37,520
202,684
- 14,827
17,386
14,827
17,386
23,800 225,377
20,134
109,912 109,912
109,912
$ 133,712 335,289
130,046
:e
(2,559
(2,559
(205,243)
(205,243)
Prior
Year
Actual
33,538
2,043
35,581
8,043
8,043
27,538
82,374
109,912
CITY OF LA QUINTA
Special Revenue Funds
ISTEA
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Intergovernmental $
- 595,235
41,450
(553,785) -
Investment income
- -
-
- -
Total revenues
- 595,235
41,450
553,785 -
Other financing sources (uses):
Transfers out
- (595,235)
(41,450
553,785 -
Total other financing
sources (uses)
- (595,235)
(41,450
553,785
Net change in fund balances
- -
-
- -
Fund balances at beginning of year
-
-
- -
Fund balances at end of year $
- -
-
- -
all
CITY OF LA QUINTA
Special Revenue Funds
LLEBG
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Intergovernmental
Investment income
Total revenues
Other financing sources (uses):
Transfers out
Prior
Year
Actual
24,243
1,152
25,395
(25,778) (45,316 (19,538 32,111
Total other financing
sources (uses) - (25,778) (45,316
Net change in fund balances 700 (5,860) (25,575)
Fund balances at beginning of year 25,575 25,575 25,575
Fund balances at end of year $ 26,275 19,715 -
91
(19,538
(19,715)
(19,715)
(32,111)
(6,716)
32,291
25,575
Variance with
Budget
Final Budget
Original Final
Actual
Positive (negative)
$ - 19,218
19,218
-
700 700
523
177
700 19,918
19,741
(177)
Prior
Year
Actual
24,243
1,152
25,395
(25,778) (45,316 (19,538 32,111
Total other financing
sources (uses) - (25,778) (45,316
Net change in fund balances 700 (5,860) (25,575)
Fund balances at beginning of year 25,575 25,575 25,575
Fund balances at end of year $ 26,275 19,715 -
91
(19,538
(19,715)
(19,715)
(32,111)
(6,716)
32,291
25,575
CITY OF LA QUINTA
Special Revenue Funds
CV Violent Crime Task Force
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with Prior
Budget Final Budget Year
Ori sinal Final Actual Positive (negative) Actual
Revenues:
Intergovernmental $
-
-
- 112,421
Investment income -
-
-
- 1,274
Miscellaneous -
-
-
- -
Total revenues -
-
- 113,695
Expenditures:
Current:
Public safety -
528
528
- 132,020
Total expenditures -
528
528
- 132,020
Net change in fund balances -
(528)
(528)
- (18,325)
Fund balances at beginning of year 528
528
528
- 18,853
Fund balances (deficit) at end of year $ 528
-
-
- 528
92
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Income Housing Project Area No. 1 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
3]
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Taxes
$ 5,186,084
5,783,697
5,991,739
208,042
5,271,524
Developer fees
-
-
20,275
20,275
-
Investment income
4,400
4,400
-
(4,400)
36,406
Rental income
341,000
341,000
367,598
26,598
376,863
Miscellaneous
150,000
150,000
856,474
706,474
280,752
Total revenues
5,681,484
6,279,097
7,236,086
956,989
5,965,545
Expenditures:
Current:
Planning and development
3,697,992
6,043,599
3,591,028
2,452,571
4,103,060
Total expenditures
3,697,992
6,043,599
3,591,028
2,452,571
4,103,060
Excess (deficiency) of revenues
over (under) expenditures
1,983,492
235,498
3,645,058
3,409,560
1,862,485
Other financing sources (uses):
Transfers out
(1,731,455)
(3,948,080)
(3,948,080
-
(3,286,801
Total other financing
sources (uses)
(1,731,455)
(3,948,080)
3,948,080
-
(3,286,801)
Net change in fund balances
252,037
(3,712,582)
(303,022)
3,409,560
(1,424,316)
Fund balances at beginning of year
4,113,170
4,113,170
4,113,170
-
5,537,486
Fund balances at end of year
$ 4,365,207
400,588
3,810,148
3,409,560
4,113,170
3]
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Income Housing Project Area No. 2 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Taxes
Developer fees
Investment income
Rental income
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
$ 2,730,853 2,871,265 3,031,668
7,054,074 7,054,074 622,305
27,400 27,400 109,504
- - 63,580
230,991
9,812,327 9,952,739 4,058,048
5,037,558 5,709,205 562,895
5,037,558 5,709,205 562,895
160,403
(6,431,769)
82,104
63,580
230,991
(5,894,691)
5,146,310
5,146,310
Prior
Year
Actual
2,479,241
129,263
2,608,504
765,795
765,795
4,774,769 4,243,534 3,495,153 (748,381) 1,842,709
(3,442,855) (10,131,066) 3,775,970) 6,355,096
Total other financing
sources (uses)
(3,442,855)
(10,131,066)
(3,775,970
Net change in fund balances
1,331,914
(5,887,532)
(280,817)
Fund balances at beginning of year
5,982,910
5,982,910
5,982,910
Fund balances at end of year
$ 7,314,824
95,378
5,702,093
M
6,355,096
5,606,715
5,606,715
19,861
585,753
(565,892)
1,276,817
4,706,093
5,982,910
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Bond - Project Area No. 1 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Budget
Original Final Actual
Revenues:
Investment income $ - -
Total revenues - -
Other financing sources (uses):
Transfers out - (74,623) (74,623)
Total other financing
sources (uses) - (74,623) (74,623
Net change in fund balances - (74,623) (74,623)
Fund balances at beginning of year 74,623 74,623 74,623
Fund balances at end of year $ 74,623 - -
95
Variance with Prior
Final Budget Year
Positive (negative Actual
11,949
11,949
- 11,949
62,674
- 74,623
(This page intentionally left blank)
96
MAJOR DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment
of, governmental long-term debt principal and interest.
The City of La Quinta has the following Debt Service Funds:
La Quinta Financing Authority Fund - To account for rental activity for the Civic Center and
rental income used to pay the Financing Authority Civic Center debt obligation.
Redevelopment Agency, P.A. No. 1 and No. 2 - To account for the accumulation of resources for
the payment of debt service for bond principal interest and trustee fees.
97
CITY OF LA Qt NTA
Debt Service Funds
Redevelopment Agency Project Area No. 1 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Budget
Original Final Actual
Variance with
Prior
Final Budget
Year
Positive (negative)
Actual
Revenues:
Taxes $ 20,744,336 23,134,787 23,966,954 832,167 21,086,099
Investment income 1,033,182 66,000 201,721 135,721 204,789
Total revenues 21,777,518 23,200,787 24,168,675 967,888 21,290,888
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Payment to bond escrow
Payments under pass-through
obligations
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
464,591
376,826
377,920
(1,094)
316,567
2,920,707
2,920,707
2,920,707
-
2,264,940
9,027,416
9,027,416
9,018,569
8,847
7,491,294
-
1,253,848
1,253,848
-
-
12,479,798
12,479,798
11,767,922
711,876
9,669,282
24,892,512
26,058,595
25,338,966
719,629
19,742,083
(3,114,994) (2,857,808) (1,170,291) 1,687,517 1,548,805
Other financing sources (uses):
Payment to bond escrow
-
(15,708,019)
(15,708,019)
- -
Transfers in
1,731,455
18,693,322
18,693,322
- 1,738,783
Transfers out
-
-
-
- (6,000,000)
Total other financing
sources (uses)
1,731,455
2,985,303
2,985,303
- (4,261,217)
Net change in fund balances
(1,383,539)
127,495
1,815,012
1,687,517 (2,712,412)
Fund balances at beginning of year
2,273,059
2,273,059
2,273,059
- 4,985,471
Fund balances at end of year
$ 889,520
2,400,554
4,088,071
1,687,517 2,273,059
W.
CITY OF LA QUINTA
Debt Service Funds
Redevelopment Agency Project Area No. 2 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Payment to bond escrow
Payinents under pass-through
obligations
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Payment to bond escrow
Transfers in
Transfers out
Total other financing
sources (uses)
Net change ui fiend balances
Fund balances (deficit) at
beginning of year
Fund balances (deficit) at end of year
Budget
Ori ig nal Final
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
Actual
$ 9,723,411 11,485,062 12,126,671 641,609 9,916,962
- 75,625 75,625 67,844
9,723,411 11,485,062 12,202,296 717,234 9,984,806
177,700
177,700
168,983
8,717
149,787
276,169
276,169
276,169
-
272,978
1,536,694
1,536,694
1,536,694
_
1,467,846
(6,182,506)
337,259
337,259
-
-
8,128,871
11,392,089
9,680,225
1,711,864
7,892,712
10,119,434
13,719,911
11,999,330
1,720,581
9,783,323
(396,023)
(2,234,849)
202,966
2,437,815
201,483
- (4,246,981) (4,246,981) 4 -
3,442,855 8,027,095 4,922,224 (3,104,871) 338,895
- - (5,800,000) (5,800,000) (1,100,000)
3,442,855
3,780,114
(5,124,757) (8,904,871)
(761,105)
3,046,832
1.,545,265
(4,921,791) (6,467,056)
(559,622)
(6,182,506)
(6,182,5
(6,182,506) -
(5,622,884)
$ (3,135,674)
(4,637,241)
(11,104,297) (6,467,056)
(6,182,506)
CITY OF LA QUINTA
Debt Service Funds
Financing Authority Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Investment income
Rental income
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
$ - - 100
680,830 680,830 680,772
9,500 9,500 9,686
690,330 690,330 690,558
9,686 9,686 5,205
300,000 300,000 300,000
380,830 380,830 380,830
690,516 690,516 686,035
(186) (186) 4,523
529 529 529
$ 343 343 5,052
100
100 80
(58) 678,955
186 -
228 679,035
4,481
4,481
4,709
4,709
285,000
3 94,43 5
689,121
(10,086)
10,615
529
MAJOR AND NON -MAJOR CAPITAL PROJECTS FUNDS
Capital projects funds account for the financial resources to be used for the acquisition,
construction or improvements of major capital facilities and infrastructure.
The City of La Quinta has the following Major Capital Projects Funds:
Capital Improvement Fund - To account for the planning, design and construction of various
capital projects throughout the City of La Quinta and the Redevelopment Agency.
Redevelopment Agency, Capital Projects Fund Area I - To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction and land
acquisition.
2004 Low/Moderate Bond Fund - To account for the 2004 revenue bond proceeds that will be
used to finance projects benefiting low and moderate income housing in La Quinta
Redevelopment Project Area No. 1 and Project Area No. 2.
The City of La Quinta has the following Non -Major Capital Projects Funds:
Infrastructure Fund - To account for the accumulation of resources provided through developer
fees for the acquisition, construction or improvement of the City's infrastructure, prior to
adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for
all developer resources received prior to this date, and is budgeted by the Council through
adoption of the annual capital improvement program budget.
Parks and Recreations Fund, Civic Center Fund, Li
r unci, t-onmunny t:emer r uns, zlreer r aciy r unci, ra K r acuity rung, r ire r aciiny run -10
account for the accumulation of resources provided through developer fees for the acquisition,
construction, or improvement of the City's infrastructure. The Developer Impact Fee was
adopted by the City Council on August 16, 1999. Six new funds have been established to account
for the specific impact areas of these fees, and are budgeted by the Council through adoption of
the annual Capital Improvement Program budget.
County Library Development Fund — To account for the accumulation of County resources for
the acquisition, construction or improvement of the City's library.
Assessment District 2000-1 Phase VI Fund — To account for the bond proceeds and other
funding that will be used for improvements to Assessment District 2000-1.
Redevelopment Agency, Capital Projects Fund Area 2 - To account for the bond proceeds,
interest and other funding that will be used for development, planning, construction and land
acquisition.
Redevelopment Agency Taxable Capital Projects Fund Area 1 — To account for the bond
proceeds, interest and other funding that will be used to finance capital projects.
Financing Authority Capital Projects Fund - To account for the Public Financing Authority bond
proceeds that will be used for specific projects and programs of the City.
101
CITY OF LA QUINTA
Non -Major Capital Projects Funds
Combining Balance Sheet
June 30, 2004
102
County
Parks and
Civic
Library
Library
Community
Infrastructure
Transportation
Recreation
Center
Development
Development
Center
Assets
Cash and investments
$ 1,143,396
6,320,534
209,295
1,883,375
931,565
406,612
641,581
Cash with fiscal agent
-
-
-
-
-
-
-
Accounts receivable
-
-
-
-
-
-
Interest receivable
5,713
20,756
5,520
7,144
3,504
1,570
2,329
Advances to other funds
-
-
-
-
-
-
-
Total assets
$ 1,149,109
6,341,290
2.14,815
1,890,519
935,069
408,182
643,910
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ -
2,196
1,004
732
450
-
194
Deposits payable
-
-
-
-
-
-
-
Due to other funds
-
-
Advances from other funds
-
4,075,463
-
-
-
Total liabilities
2,196
4,076,467
732
450
-
194
Fund balances:
Unreserved:
Designated for
capital projects
1,149,109
6,339,094
-
1,889,787
934,619
408,182
643,716
Undesigated
-
-
3,861,652
-
-
-
-
Total fund balances
1,149,109
6,339,0943,8�
61,652
1,889,787
934.619
408,182
643,716
Total liabilities and
fund balances
$ 1,149,109
6,341,290
214,815
1,890,519
935,009
408.182
643,9101
102
Redevelopment
Street Park Fire A.D. 2000-1 Agency
Facility Facility Facility Phase VI PA No. 2
Redevelopment
Agency Financing
Taxable Bond Authority
PANo.I Projects
Totals
2004 2003
145,266 36,836 450,706 1,845,134 - - 14,014,300 12,929,720
- - - 8,490,446 55,000 8,545,446 -
536 - - 1,668 60,900 - - 63,104 60,900
- 143 307 - 1,682 - 48,668 -
- - 1,260,695 - - 1,260,695 1,109,846
145,802 36,979 307 452,374 3,168,411 8,490,446 55,000 23,932,213 14,100,466
30 10 194
307
- 1,260,695
30 10 1,261,196
12,084 -
27,835 -
- 2,746,630
39,919 2,746,630
16,894 26,353
- 27,835 27,835
- 2,746,937 18,078
- 5,336,158 4,921,720
- 8,127,824 4,993,986
145,772 36,969 - 452,374 3,128,492 8,490,446 55,000 23,673,560 9,106,480
1,2( 60,889) - - (2,746,630) - (7,869,171) -
145,772 36,969 1,260,889 452,374 3,128,492 5,743,816 55,000 15,804,389 9,106,480
145,802 36,979 307 452,374 3,168,411 8,490,446 55,000 23,932,213 14,100,466
103
CITY OF LA QUINTA
Non -Major Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30. 2004
County
Parks and Civic Library Library Community
Infrastructure Transporta ion Recreation Center Development Developmei►t Center
Revenues:
Developer fees $ - 2,358,474 837,411 539,955 356,492 - 153,585
Intergovernmental - - - - - 200,000 -
Investment income 31,458 90,615 21,823 33,929 17,177 5,879 10,338
Total revenues 31,458 2,449,089 859,234 573,884 373,669 205,879 163,923
Expenditures:
Current:
General government -
Planning and
development
Public works -
Debt service:
Interest -
Fiscal charges -
Total expenditures -
Excess (deficiency) of
revenues over (under)
expenditures 31,458
Other financing sources (uses):
_ - 207,156 - -
63,050 - - - -
- 103,476
63,050 103,476 207,156 - -
2,386,039 755,758 366,728 373,669 205,879 163,923
Issuance of tax allocation bonds - - - - -
Issuance of revenue bonds - - - - - -
Transfers in - - - - -
Transfers out (1,120,840) (22,420) (403,751) (260,1543( 28,480) - -
Total other financing
sources (uses) (1,120,840
Net change in fund balances (1,089,382)
Fund balances (deficit) at
beginning of year 2,238,491
Fund balances (deficit) at end of year $ 1,149,109
(22,420)
(403,751)
(260,154)
(328,480) - -
2,363,619
352,007
106,574
45,189 205,879 163,923
3,975,475
(4,213,659)
1,783,213
889,430 202,303 479,793
6,339,094
(3,861,652)
1,889,787
934,619 408,182 643,716
104
105
Redevelopment
Redevelopment
Agency
Financing
Street
Park
Fire
A.D. 2000-1
Agency
Taxable Bond
Authority
Totals
Facility
facility
Facility
Phase VI
PANo. 2
PANo. I
Projects
2004
2003
31,828
9,151
157,345
-
-
4,444,241
2,701,275
_
_
-
_
-
-
-
200,000
2,000
2,435
637
598
8,013
49,219
71,198
343,319
332,743
34,263
9,788
157,943
8,013
49,219
71,198
-
4,987,560
3,036,018
-
-
-
-
-
-
207,156
203,831
174,152
-
174,152
217,599
_
-
_
_
63,050
-
-
-
10,186
-
-
-
-
113,662
52,523
-
-
949,968
2,075,660
3,025,628
-
-
10,186
174,152
949,968
2,075,660
3,583,648
473,953
34,263
9,788
147,757
8,013
(124,933)
(878,770)
(2,075,660)
1,403,912
2,562,065
-
-
-
-
-
26,400,000
-
26,400,000
-
-
-
-
-
-
-
90,000,000
90,000,000
-
-
-
-
-
5,800,000
-
5,800,000
1,308,913
-
(1,500,000)
-
(5,623,604)
(19,777,414)
(87,869,340)
(116,906,003)7,8(
81,212)
(1500,0
-
176,396
6,622,586
2,130,660
5,293,997
(6,5_ 72,299)
34,263
9,788
(1,352,243)
8,013
51,463
5,743,816
55,000
6,697,909
(4,010,234)
111,509
27,181
91,354
444,361
3,077,029
-
-
9,106,480
13,116,714
145,772
30,969
(1,2617,889)
452,374
3,128,492
5,743,816
55,000
15,804,389
9,106,480
105
CITY OF LA QUINTA
Capital Projects Funds
Capital Improvement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Budget
Original Final Actual
Revenues:
Developer fees $
-
2,000
-
Intergoverninental
-
14,349,076
5,931,382
Miscellaneous
100,000
153,000
153,000
Total revenues
100,000
14,504,076
6,084,382
Expenditures:
Capital projects
-
106,197,827
43,207,098
Debt service:
Principal
-
-
-
Interest
-
-
-
Total expenditures
-
106,197,827
43,207,098
Excess (deficiency) of revenues
over (under) expenditures
100,000
(91,693,751)
(37,122,716)
Other financing sources (uses):
Transfers in
22,905,585
91,692,753
44,625,348
Transfers out
-
-
(7,502,632)
Total other financing
sources (uses)
222905,585
91,692,753
37,122,716
Net change in fund balances
23,005,585
(998)
-
Fund balances at beginning of year
-
-
-
Fund balances at end of year $ 23,005,585
(998)
106
Variance with
Prior
Final Budget
Year
Positive (negative)
Actual
(2,000)
97,150
(8,417,694)
4,782,293
(8,419,694)
4,879,443
62,990,729 57,342,978
104,409
- 67,841
62,990,729 57,515,228
54,571,035 (52,635,785)
(47,067,405) 52,635,785
(7,502,632) -
(54,570,037) 52,635,785
998 -
998 -
CITY OF LA QUINTA
Capital Projects Funds
Redevelopment Agency Project Area No. 1 Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Investment income
Rental income
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Year ended June 30, 2004
1,421,427 1,840,727 1,832,408
1,421,427 1,840,727 1,832,408
(984,327) (1,399,097) (1,189,791)
14,045,238 14,064,243
(19,535,000) (41,673,317) (6,561,612)
(19,535,000)
(27,628,079)
7,502,631
Variance with
Budget
_
41,090,533
Final Budget
Original
Final
Actual
Positive (negative)
$ 437,100
437,100
635,823
198,723
-
4,530
6,794
2,264
437,100
441.630
642,617
200,987
1,421,427 1,840,727 1,832,408
1,421,427 1,840,727 1,832,408
(984,327) (1,399,097) (1,189,791)
14,045,238 14,064,243
(19,535,000) (41,673,317) (6,561,612)
(19,535,000)
(27,628,079)
7,502,631
(20,519,327)
(29,027,176)
6,312,840
41,090,533
41,090,533
41,090,533
$ 20,571,206
12,063,357
47,403,373
107
8,319
8,319
209,306
19,005
35,111,705
35,130,710
35,340,016
35,340,016
Prior
Year
Actual
652,611
38,692
55,789
747,092
1,559,307
1,559,307
(812,215)
6,000,000
(12939,564)
4,060,436
3,248,221
37,842,312
41,090,533
CITY OF LA QUINTA
Capital Projects Funds
2004 Low/Moderate Income Bond Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Investment income $ _ - 2,781 2,781 -
Total revenues - - 2,781 2,781 -
Other financing sources (uses):
Transfers in - 66,323,236 66,323,236 - -
Transfers out - (8,720,000) (8,669,035) 50,965 -
Total other financing
sources (uses) - 57,603,236 57,654,201 50,965
Net change in fund balances - 57,603,236 57,656,982 53,746 -
Fund balances at beginning of year - - - - -
Fund balances at end of year $ - 57,603,236 57,656,982 53,746
108
CITY OF LA QUINTA
Capital Projects Funds
Infrastructure Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Investment income
Total revenues
Other financing sources (uses):
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
Actual
$ 15,600 15,600 31,458 15,858 70,822
15,600 15,600 31,458 15,858 70,822
(374,008) (2,264,620) (1,120,840) 1,143,780 1,894,586)
(374,008) (2,264,620) (1,120,840)
(358,408) (2,249,020) (1,089,382)
2,23 8,491 2,23 8,491 2,23 8,491
$ 1,880,083 (10,529) 1,149,109
109
1,143,78 (1,894,58 )
1,159,638 (1,823,764)
- 4,062,255
1,159,638 2,238,491
CITY OF LA QUINTA
Capital Projects Funds
Transportation Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Budget.
Original Final
Revenues:
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
Actual
Developer fees
$ 549,000
549,000
2,358,474
1,809,474
1,517,388
Investment income
53,300
53,300
90,615
37,315
80,281
Total revenues
602,300
602,300
2,449,089
1,846,789
1,597,669
Expenditures:
Current:
Public works
-
63,050
63,050
-
-
Total expenditures
-
63,050
63,050
-
-
Excess (deficiency) of revenues
over (under) expenditures
602,300
539,250
2,386,039
1,846,789
1,597,669
Other financing sources (uses):
Transfers out
1,988,986)
1,302,363
22,420
1,279,943
1,019,180
Total other financing
sources (uses)
(1,988,986)
1,302,363)
(22,420
1,279,943
(1,019,180)
Net change in fund balances
(1,386,686)
(763,113)
2,363,619
3,126,732
578,489
Fund balances at beginning of year
3,975,475
3,975,475
3,975,475
-
3,396,986
Fund balances at end of year
$ 2,588,789
3,212,362
6,339,094
3,126,7323,975,475
110
CITY OF LA QUINTA
Capital Projects Funds
Parks and Recreation Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Debt service:
Interest expense
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit) at
beginning of year
Fund balances (deficit)
at end of year
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
$ 251,000 251,000 837,411 586,411 424,762
- - 21,823 21,823 28,503
251,000 251,000 859,234 608,234 453,265
- 103,476
- 103,476
251,000 251,000 755,758
(103,476) 52,523
(103,476) 52,523
504358 400,742
- (618,564)
(403,751)
214,813
(4,773,363)
- (618,564)
(403,751)
214,813
(4,773,363)
251,000 (367,564)
352,007
719,571
(4,372,621)
(4,213,659 (4,213,659) (4,213,659) -
$ (3,962,659) (4,581,223) (3,861,652) 719,571
111
158,962
(4,213,659)
CITY OF LA QUINTA
Capital Projects Funds
Civic Center Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Current:
General government
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative}
Prior
Year
Actual
$ 183,000
183,000
539,955
356,955
365,776
21,200
21,200
33,929
12,729
38,796
204,200
204,200
573,884
369,684
404,572
204,251
204,251
207,156
2,905
204,251
204,251
207,156
(2,905
(51) (51) 366;728 366,779
481,844 (260,154 221,690
Total other financing
sources (uses) - 481,844 (260,154) 221,690
Net change in fund balances (51) (481,895) 106,574 588,469
Fund balances at beginning of year 1,783,213 1,783,213 1,783,213 -
Fund balances at end of year $ 1,783,162 1,301,318 1,889,787 588,469
112
203,831
203,831
200,741
36,969
(36,969)
163,772
1,619,441
1,783,213
CITY OF LA QUINTA
Capital Projects Funds
Library Development Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
113
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 112,500
112,500
356,492
243,992
190,171
Investment income
-
-
17,177
17,177
20,644
Total revenues
112,500
112,500
373,669
261,169
210,815
Other financing sources (uses):
Transfers out
-
(4,074,930)
(328,480)
3,746,450
(156,964
Total other financing
sources (uses)
-
(4,074,930)
(328,480)
3,746,450
156,954
Net change in fund balances
112,500
(3,962,430)
45,189
4,007,619
53,851
Fund balances at beginning of year
889.430
889,430
889,430
-
835,579
Fund balances at end of year
$ 1,001,930
(3,073,000)
934,619
4,007,619
889,430
113
CITY OF LA QUINTA
Capital Projects Funds
County Library Development Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Intergovernmental $
200,000
200,000
200,000
-
200,000
Investment income
4,100
4,100
5,879
1,779
2,303
Total revenues
204,100
204,100
205,879
1,779
202,303
Other financing sources (uses):
Transfers out
(400,000)
(400,000)
-
400,000
-
Total other financing
sources (uses)
(400,000)
(400,000)
-
400,000
-
Net change in fund balances
204,100
204,100
205,879
1,779
202,303
Fund balances at beginning of year
202,303
202,303
202,303
-
-
Fund balances at end of year $
406,403
406,403
408,182
1,779
202,303
114
CITY OF LA QUINTA
Capital Projects Funds
Community Center Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Developer fees
Investment income
Total revenues
Variance with
Budget Final Budget
Original Final Actual ositive (negative
$ 48,500 48,500 153,585 105,085
8,700 8,700 10,338 1,638
57,200 57,200 163,923 106,723
Prior
Year
Actual
86,022
9,993
96,015
Fund balances at beginning of year
479,793
479,793
479,793
- 383,778
Fund balances at end of year
$ 536,993
536,993
643,716
106,723 479,793
115
CITY OF LA QUINTA
Capital Projects Funds
Street Facility Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Developer fees
Investment income
Total revenues
Variance with
Prior
Budget
Final Budget
Year
Original Final
Actual Positive (negative)
Actual
- 84,860
$ 7,500 7,500
31,828 24,328
24,354
1,900 1,900
2,435 535
2,295
Total revenues
9,400
9,400
34,263
24,863 26,649
Fund balances at beginning of year
111,509
111,509
111.509
- 84,860
Fund balances at end of year
$ 120,909
120,909
145,772
24,863 111,509
116
CITY OF LA QUINTA
Capital Projects Funds
Park Facility Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
117
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 2,500
2,500
9,151
6,651
4,425
Investment income
500
500
637
137
543
Total revenues
3,000
3,000
9,788
6,788
4,968
Fund balances at beginning of yea
27,181
27,181
27,181
-
22,213
Fund balances at end of year
$ 30,181
30,181
36,969
6,788
27,181
117
CITY OF LA QUINTA
Capital Projects Funds
Fire Facility Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Debt service:
Interest expense
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
- 10,186
10,186
10,186
(10,186
33,100 33,100 147,757 114,657
(1,500,000) 1,500,000)
Total other financing
sources (uses) - (1,500,000) (1,500,000
Net change in fund balance 33,100 (1,466,900) (1,352,243)
Fund balances at beginning of yea 91,354 91,354 91,354
Fund balances (deficit)
at end of year $ 124,454(1,375,546 (1,260,889)
118
114,657 89,507
- 1,847
114,657 91,354
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
$ 32,100
32,100
157,345
125,245
88,377
1,000
1,000
598
402
1,130
33,100
33,100
157,943
124,843
89,507
- 10,186
10,186
10,186
(10,186
33,100 33,100 147,757 114,657
(1,500,000) 1,500,000)
Total other financing
sources (uses) - (1,500,000) (1,500,000
Net change in fund balance 33,100 (1,466,900) (1,352,243)
Fund balances at beginning of yea 91,354 91,354 91,354
Fund balances (deficit)
at end of year $ 124,454(1,375,546 (1,260,889)
118
114,657 89,507
- 1,847
114,657 91,354
CITY OF LA QUINTA
Capital Projects Funds
A.D. 2000-1 Phase VI Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive( neL
�ativt Actual
Revenues:
Investment income $ - - 8,013
Total revenues - - 87013
Other financing sources (uses):
Transfers out 142,657 -
Total other financing
sources (uses) - (142,657)
Net change in fund balances - (142,657) 8,013
Fund balances at beginning of year 434,355 343,355 444,361
Fund balances at end of year $ 434,355 2002698 452,374
119
8,013 10,156
8,013 10,156
142,657 150
142,657 15 0)
150,670 10,006
101,006 434,355
251,676 444,361
CITY OF LA QUINTA
Capital Projects Funds
Redevelopment Agency Project Area No. 2 Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Variance with
Budget Final Budget
Original Final Actual Positive (negative)
Revenues:
Investment income $ 20,000 20,000 49,219 29,219
Total revenues 20,000 20,000 49,219 29,219
Expenditures:
Current:
Planning and development 314,085 115,953 174,152 (58,199)
Total expenditures 314,085 115,953 174,152 (58,199
Prior
Year
67,277
67,277
217,599
217,599
Excess (deficiency) of revenues
over (under) expenditures (294,085) (95,953) (124,933 (28,980) (150,322
Other financing sources (uses):
Transfers in
1,100,000
1,345,583
5,800,000
4,454,417
1,308,913
Transfers out
-
(5,763,330)
(5,623,604)
139,726
-
Total other financing
sources (uses)
1,100,000
(4,417,747
176,396
4,594,143
1,308,913
Net change in fund balances
805,915
(4,513,700)
51,463
4,565,163
1,158,591
Fund balances at beginning of year
3,077,029
3,077,029
3,077,029
-
1,918,438
Fund balances at end of year
$ 3,882,944
(1,436,671)
3,128,492
4,565,163
3,077,029
120
CITY OF LA QUINTA
Capital Projects Funds
Redevelopment Agency Taxable Bond Project Area No. 1
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
121
Variance with Prior
Budget
Final Budget Year
Original Final
Actual
Positive (negative) Actual
Revenues:
Investment income
$ - -
71,198
71,198 -
Total revenues
- -
71.198
71,198
Expenditures:
Debt service:
Fiscal charges
- 955,822
949,968
5,854 -
Total expenditures
- 955,822
949,968
5,854 -
Excess (deficiency) of
revenues over (under)
expenditures
- (955,822)
(878,770)
77,052 -
Other financing sources (uses):
Issuance of revenue bonds
- 26,400,000
26,400,000
-
Transfers out
- (25,444,178)
(19,777,414)
5,666,764 -
Total other financing
sources (uses)
_ 955,822
6,622,586
5,666,764 -
Net change in fund balances
- -
5,743,816
5,743,816 -
Fund balances at
beginning of year
- -
-
- -
Fund balances at end of year
$ - -
5,743,816
5,743,816
121
CITY OF LA QUINTA
Capital Projects Funds
Financing Authority Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2004
Revenues:
Investment income
Total revenues
Expenditures:
Debt service:
Fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Issuance of revenue bonds
Transfers out
Total other financing
sources (uses)
Net change m fund balances
Fund balances (deficit) at
beginning of year
Fund balances at end of year
Budget
Original Final
Variance with
Prior
Final Budget
Year
Actual Positive (negative)
Actual
324
324
- 2,130,657 2,075,660 54.997
- 2,130,657 2,075,660 54,997 -
- (2,130,657)
(2,075,660)
54997 -
90,000,000
90,000,000
- (87,737,551)
(87,869,340)
(131,789) -
- 2,262,449
2,130,660
(131,789) -
- 131,792
55,000
(76,792) 324
- - - (324)
$ - 131,792 55.000 (76,792) - -
122
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to
departments within the City. Costs of materials and services used are accumulated in this fund
and charged to the user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund — used to account for the ultimate replacement of City owned and
operated vehicles and equipment.
Information Technology Fund — used to account for the purchase and replacement of information
systems.
123
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Net Assets
Assets
Current assets:
Cash and investments
Interest receivable
Due from other governments
Capital assets, net
Total assets
Liabilities
Current liabilities:
Accounts payable
Net Assets
Invested in capital assets,
net of related debt
Unrestricted
Total net assets
June 30, 2004
Equipment Information
Replacement Technology
Totals
2004 2003
$ 2,612,332 472,060
3,084,392 2,948,958
9,841 1,802
11,643 -
- 3,932
3,932 15,000
715,864 396,060
1,111,924 929,210
3,338,037 873,854 4,211,891 3,893,168
2,899 25,985 28,884 36,713
715,864 396,060 1,111,924 929,210
2,619,274 451,809 3,0712083 2,927,245
$ 3,335,138 847,869 4,183,007 3,856,455
124
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Assets
Operating revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other operating expenses
Year ended June 30, 2004
Equipment Information
Replacement Technology
Totals
2004 2003
$ 317,678 377,282 694,960 451,512
- - - 2,382
317,678
377,282
694,960
453,894
-
51,862
51,862
-
33,390
-
33,390
34,213
138,406
-
138,406
119,032
-
124,037
124,037
172,755
-
120,098
120,098
70,749
143,311
162,523
305,834
276,517
-
-
-
11,784
Total operating expenses
315,107
458,520
773,627
685,050
Operating income (loss)
2,571
(81,238)
(78,667)
(231,156)
Non-operating revenues (expenses):
Investment income
Total non-operating
revenues (expenses)
Income (loss) before transfers
and capital contributions
Capital contributions
Changes in net assets
Net assets at beginning of year
Net assets at end of year
48,203
10,266
58.469
72.899
48,203
10,266
58,469
72,899
50,774
(70,972)
(20,198)
(158,257)
246,560
100,190
346,750
30,099
297,334
29,218
326,552
(128,158)
3,037,804
818,651
3,856,455
3,984,613
$ 3,335,138
847,869
4,183,007
3,856,455
125
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Cash Flows
Year ended June 30, 2004
Cash flows from operating activities:
Cash received from other customers
Cash payments to suppliers for goods and services
Net cash provided by (used for) operating activities
Cash flows from capital and related activities:
Purchase of fixed assets
Net cash provided by (used for)
capital and related activities
Cash flows from investing activities:
Interest received on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income to net cash
provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation
Adjustments:
(Increase) decrease in due from other governments
(Increase) decrease in other assets
Increase (decrease) in accounts payable
Net cash provided by (used for) operating activities
Noncash capital, financing and investing activities:
Fixed asset disposals
Fixed assets contributed by other funds
126
Equipment Information Totals
Replacement Technology 2004 2003
$ 332,678 373,350 706,028 438,894
(175,705) (251,922) 427,627) (393,873)
156,973 121,428 278,401 45,021
(56,745) (133,048) (189,793) (175,659)
(56,745) (133,048) (189,793) (175,659)
38,362
8,464
46,826
72,899
38,362
8,464
46,826
72,899
138,590
(3,156)
135,434
(57,739)
2,473,742 475,216 2,948,958 3,006,697
$ 2,612,332 472,060 3,084,392 2,948,958
$ 2,571
(81,238)
(78,667)
(231,156)
143,311
162,523
305,834
276,517
15,000
(3,932)
11,068
(15,000)
612
47,383
47,995
18,515
(4.521)
(3,308)
(7,829)
(3,855)
$ 156,973
121,428
278,401
45,021
$ (219,466) (292,025) (511,491) -
246,560 100,190 346,750 30,099
AGENCY FUNDS
Agency funds are used to account for assets held by the City as an agent for an individual,
private organizations and other governmental units. The agency funds and their purposes are as
follows:
The City of La Quinta has the following agency funds:
Assessment District No. 88-1, 89-2, 90-1 91-1,92-1, 97-1, 2000-1 - To account for assessments
paid to the City for debt service payments on bond issues used to finance sewer improvements.
127
CITY OF LA QUINTA
Agency Funds
Combining Balance Sheet
June 30, 2004
Assessment
Assessment
Assessment
Assessment
District
District
District
District
No. 88-1
No. 89-2
No. 90-1
No. 91-1
Assets
Cash and investments
$
90,318
57,128
262,280
560,846
Accounts receivable
319
178
949
1,998
Total assets
$
90,637
57,306
263,229
562,844
Liabilities
Due to bondholders
$
90,637
57,306
263,229
562,844
Total liabilities
$
90,637
57,306
263,229
562,844
128
Assessment
Assessment
Assessment
1,989,107
District
District
District
Totals
No. 92-1
No. 97-1
No. 2000-1
2004 2003
385,734
140,851
484,977
1,982,134 1,740,812
1,345
506
1,678
6,973 44,846
387,079
141,357
486,655
1,989,107 1,785,658
387,079
141,357
486,655
1,989,107
1,785,658
387,079
141,357
486,655
1,989,107
1,785,658
129
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
Year ended June 30, 2004
Balance at
Additions Deletions June 30, 2004
3,711
Balance at
90,318
June 30, 2003
(1,316)
ASSESSMENT DISTRICT NO.
88-1
(3,207)
Assets
Cash and investments
$
88,498
Accounts receivable
1,316
Total assets
$
89,814
Liabilities
Due to bondholders
$
89,814
ASSESSMENT DISTRICT NO. 89-2
Assets
Cash and investments
$
48,889
Accounts receivable
1,166
Total assets
$
50,055
Liabilities
Due to bondholders
$
50,055
ASSESSMENT DISTRICT NO. 90-1
Assets
Cash and investments
$
228,191
Accounts receivable
5,722
Total assets
$
233,913
Liabilities
Due to bondholders
$
233,913
Balance at
Additions Deletions June 30, 2004
3,711
(1,891)
90,318
319
(1,316)
319
4,030
(3,207)
90,637
130
4,212 (3,389) 90,637
10,624
(2,385)
57,128
178
(1,166)
178
10,802
(3,551)
57,306
9,716 (2,465) 57,306
126,270 (92,181) 262,280
948 (5,721) 949
127,218 97,902 263,229
124,660 (95,344 263,229
(Continued)
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
Balance at Balance at
June 30, 2003 Additions Deletions pine 30, 2004
ASSESSMENT DISTRICT NO. 91-1
Assets
Cash and investments
$ 477,542
254,220
(170,916)
560,846
Accounts receivable
14,668
1,146
(13,816)
1,998
Due to bondholders
$ 143,951
Total assets
$ 492,210
255,366
184,732
562,844
_
Liabilities
Due to bondholders
$ 492,210
245,922
(175,288)
562,844
ASSESSMENT DISTRICT NO, 92-1
Assets
Cash and investments $ 358,764 195,577 (168,607) 385,734
Accounts receivable 7,367 1,345 (7,367) 1,345
Total assets $ 366,131 196,922 (175,974) 387,079
Liabilities
Due to bondholders $ 366,131
ASSESSMENT DISTRICT NO. 97-1
Assets
Cash and investments
$ 141,883
Accounts receivable
2,068
Total assets
$ 143,951
Liabilities
Due to bondholders
$ 143,951
131
196,505 (175,557) 387,079
69,629 (70,661) 140,851
507 (2,069) 506
70,136 72,730 141,357
70,048 (72,642) 141,357
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
TOTALS -ALL AGENCY FUNDS
Additions Deletions
(Continued)
Balance at
June 30, 2004
329,169
Balance at
484,977
June 3 O, 2003
ASSESSMENT DISTRICT NO. 2000-1
Assets
Cash and investments
Cash and investments
$ 397,045
Accounts receivable
12,539
Total assets
$ 409,584
Liabilities
44,846
Due to bondholders
$ 409,584
TOTALS -ALL AGENCY FUNDS
Additions Deletions
(Continued)
Balance at
June 30, 2004
329,169
(241,237)
484,977
1,678
12,539
1,678
Cash and investments
330,847
(253,776
486,655
(747,878)
323,518
(246,447)
486,655
Assets
Cash and investments
$
1,740,812
989,200
(747,878)
1,982,134
Accounts receivable
44,846
6,121
43,994
6,973
Total assets
$
1,785,658
995,321
(791,872)
1,989,107
Liabilities
Due to bondholders
$
1,785,658
974,581
771,132
1,989,107
Total liabilities
$
1,785,658
974,581
771,132)
1,989,107
132
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
133
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental
Funds by Source 1
June 30, 2004 and 2003
Governmental funds capital assets:
Land
Buildings and improvements
Equipment and furniture
Vehicles
Infrastructure
Construction in progress
Total governmental funds capital assets
Investment in general fixed assets by source:
Capital projects funds
Redevelopment agency
2004 2003
$ 73,505,659
56,467,549
24,032,644
15,799,488
718,801
1,054,971
161,052
161,052
330,958,870
313,017,867
27,932,823
29,604,242
457,309.849 416,105,169
388,021,434 365,540,462
69,288,415 50,564,707
Total government funds capital assets $4572309,849 4i6,1�05 16_9_
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in the internal service fund are excluded from the
above amounts. Generally, the capital assets of the internal service funds are included as
governmental activities in the statement of net assets.
134
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Fuction and Activity 1
June 30, 2004
Buildings and Equipment Construction
Land Improvements and Furniture Vehicles Infrastructure in Progress Totals
Function and Activity
10,030 -
General government:
10,030
City manager $ 6,951,091
121,868 98,365
Economic development -
- 10,208
Personnel -
24,299 -
Central services -
- 45,878
City clerk -
- 135,366
Total general government 6,951,091
146,167 289,817
Public safety:
Police
Building and safety
administration
Emergency services
Fire
Civic center building
operations
Total public safety
Community services:
Community services
administration
Parks and recreation progra
Seluor center
Total community services
Community development:
Community development
administration
Redevelopment agency
Total community
development
Public works:
Public works administration
Development and traffic
Street maintenance and
operations
Lighting and landscape
maintenance and operations
Capital projects
Total public works
Total governmental funds
- 7,171,324
- 10,208
- 24,299
- 45,878
- - 135,366
7,3 87,075
105,109 - - - 105,109
-
10,030 -
- -
10,030
-
33,475 -
- -
33,475
101,392 -
- 161,052
- 3,589,493
3,851,937
- 9,712,796
64,599 -
- 852,349
10,629,744
101,392 9,712,796
213,213 161,052
- 4,441,842
14,630,295
- 11,151,377
- -
1,640,039 69,025
12,860,441
- -
8,045 -
- 7,601
15,646
- 2,019,454
5,289 -
- -
2,024,743
- 13,170,831
13,334 -
1,640,039 76,626
14,900,830
- -
48,025 -
- -
48,025
66,453,176 800,000
- -
- 12,212,286
79,465,462
66,453,176 800,000 48,025
- 5,374
- 18,555
- 5,200 22,618
197,650 107,965
202,850 154,412
- - 12,212,286 79,513,487
- - 5,374
- 316,295,341 4,307,694 320,621,590
- 2,028,035 4,352 2,060,205
- 10,995,455 6,890,023 18,190,993
329,318,831 11,202,069 340,878,162
capital assets $ 73,505,659 24,032,644 718,801 161,052 330,958,870 27,932,823 457,309,849
'This schedule presents only the capital asset balances related to governmental f mds. Accordingly, the capital assets reported in the
internal service funds are excluded from the above amounts. Generally, the capital assets of the internal service funds are included as
governmental activities in the statement of net assets.
135
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Fuction and Activity
June 30, 2004
_ Function and Activity
General government:
Legislative
City manager
Economic development
Personnel
Finance
Central services
City clerk
Total general government
Public safety:
Police
Building and safety administration
Code compliance
Animal control
Building
Emergency services
Fire
Civic center building operations
Total public safety
Community services:
Community services administration
Parks and recreation program
Senior center
Total community services
Community development:
Community development administration
Redevelopment agency
Total community development
Public works:
Public works administration
Development and traffic
Street maintenance and operations
Lighting and landscape
maintenance and operations
Capital projects
Total public works
Total governmental funds capital assets
Governmental
8,552,148
Governmental
Funds Capital
1,998,588
Funds Capital
Assets
1,995,997
Assets
July 1, 2003
Additions Deletions
June 30, 2004
6,414,065
8,559,749
$ 5,146
- (5,146)
-
7,205,621
- (34,297)
7,171,324
10,208
-
10,208
29,340
- (5,041)
24,299
5,976
- (5,976)
-
45,877
- -
45,877
145,411
- (10,0
135,366
7,447,579
- (60,505)
7,387,074
143,135
- (38,026)
105,109
52,670
- (42,640)
10,030
4,104
- (4,104)
-
2,546
- (2,546)
-
1,250
- (1,250)
-
68,597
- (35,122)
33,475
1,167,736
2,687,542 (3,341)
3,851,937
10,116,755
588,634 (75,646)
10,629,743
11,556,793 3,276,176 (202,675) 14,630,294
4,409,034
8,552,148
(41,909)
12,919,273
1,998,588
-
(2,591)
1,995,997
6,443
7,601
(28,484)
(14 4
6,414,065
8,559,749
(72,984)
14,900,830
47,625
10,265
(9,864)
48,026
50,564,707
29,076,755
176,000
79,465,462
50,612,332
29,087,020
(185,864)
79,513,488
16,728 - (11,354) 5,374
321,214,191 20,697,758 (21,290,357) 320,621,592
7,845,268 3,988 (65,075) 7,784,181
10,996,611 3,406,625 (1,936,220) 12,467,016
1,602 - (1,602) -
340,074,400 24,108,3.71 23,304,608 340,878,163
$ 416,105,169 65,031,316 (23,826,636) 4571309,849
'This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported
in the internal service funds are excluded from the above amounts. Generally, the capital assets of the internal service funds
are included as governmental activities in the statement of net assets.
136
STATISTICAL SECTION
137
TABLE 1
CITY OF LA QUINTA
General Fund Expenditures by Function
Last Ten Fiscal Years
Fiscal Year
Ending General Public Public Community Planning & Capital
June 30 Government Safety Works Service Development Projects Total
1994
2,359,673
2,786,575
673,144
119,265
1995
1,565,265
3,143,697
576,304
199,115
1996
1,793,301
3,227,438
813,352
413,142
1997
2,376,935
3,442,056
889,694
469,1I0
1998
2,229,389
4,099,523
1,159,372
494,402
1999
2,473,241
4,468,294
1,546,650
732,741
2000
2,814,604
4,992,811
1,704,996
768,528
2001
3,063,640
5,636,154
1,417,529
817,460
2002
2,960,339
7,609,121
1,536,033
1,014,474
2003
3,140,576
8,202,407
2,311,436
991,558
2004
3,892,220
9,672,180
3,103,794
1,025,397
Source: City of La Quinta Audited Financial Statements
10: P-1
511,416 -
6,450,073
538,610 282,113
6,305,104
453,656 201,475
6,902,364
455,563 170,000
7,803,358
345,054 -
8,327,740
626,074 -
9,847,000
748,949 -
11,029,888
733,579 -
11,668,362
726,589 -
13,846,556
674,450 -
15,320,427
750,444 -
18,444,035
TABLE 2
CITY OF LA QUINTA
General Fund Revenue by Source
Last Ten Fiscal Years
Fiscal Year
Licenses
Charges
Litigation
Ending
and
Inter-
for
Settlement
June 30
Taxes
Permit
Governmental
Services
Proceeds
Interest
Miscellaneous
Total
1994
4,212,604
777,241
1,600,032
469,695
(1)
585,264
1,042,872
8,687,707
1995
4,946,304
902,914
741,784
551,727
477,872
718,310
137,028
8,481,939
1996
5,393,456
998,030
815,980
610,873
12,386
965,420
230,705
8,966,850
1997
5,942,698
793,689
1,072,803
976,897
40,593
941,327
22,712
9,790,719
1998
6,764,355
1,144,562
1,110,553
1,228,269
281,382
1,164,145
114,969
11,808,235
1999
8,101,191
1,951,981
1,466,788
1,965,219
740,985
1,569,796
74,529
15,870,489
2000
8,888,825
2,493,360
2,388,749
1,922,097
-
1,868,073
106,371
17,667,475
2001
10,331,970
2,057,423
2,164,891
1,998,589
-
2,513,789
43,547
19,110,209
2002
10,443,436
1,857,691
3,683,490
1,757,744
-
2,030,346
529,190
20,301,897
2003
11,572,985
1,982,127
4,394,045
2,302,759
-
1,894,303
87,240
22,233,459
2004
13,184,050
3,096,145
4,895,986
2,619,578
2,335,154
109,388
26,240,301
(1)
1995 was the first year Litigation Settlement Proceeds was
identified as a revenue source
Source: City of La Quinta Audited Financial Statements
IMM
TABLE 3
CITY OF LA QUINTA
Property Tax Levies and Collections
Last Ten Fiscal Years
Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978.
2. Levies and collections are for General Fund only excluding supplemental property taxes.
Source: City of La Quinta and County of Riverside
140
Percent of
Fiscal Year
Total
Current
Percent
Delinquent
Total
Ending
Tax
Tax
of Levy
Tax
Collections
7unL 3Q
i&Xy
Collection
Collected
Collections
to Tax Levv
1994
288,407
275,752
95.6%
900
95.9%
1995
549,273
487,043
88.7%
786
88.8%
1996
670,398
643,309
96.0%
2,312
96.3%
1997
824,073
760,350
92.3%
-
92.3%
1998
886,175
980,838'
110.7%
-
110.7%
1999
991,001
1,148,040
115.8%
-
115.8%
2000
1,001,074
1,005,983
100.5%
-
100.5%
2001
$1,071,723
$1,091,128
101.8%
-
101.8%
2002
$1,218,823
$1,409,828
115.7%
_
115.7%
2003
$1,432,528
$1,437,908
100.4%
-
100.4%
2004
$1,724,861
$1,767,764
102.5%
-
102.5%
Note: 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978.
2. Levies and collections are for General Fund only excluding supplemental property taxes.
Source: City of La Quinta and County of Riverside
140
TABLE 4
CITY OF LA QUINTA
Schedule of Net Taxable Value
Last Ten Fiscal Years
Fiscal Year
Assessed
Less
Less
Net
Ending
Secured
Unsecured
Property
Property
Homeowner's
Taxable
June 30
Pro a
hr-0-p9hr-0-p9m
Value
Exemj! ions
Exemptions
Value
1994
1,872,768,156
8,119,527
1,880,887,683
3,946,378
18,901,202
1,858,040,103
1995
1,927,834,908
22,822,285
1,950,657,193
4,357,954
20,518,400
1,925,780,839
1996
2,043,276,054
23,801,872
2,067,077,926
6,936,774
22,399,068
2,037,742,084
1997
2,164,204,951
22,511,720
2,186,716,671
6,919,376
22,407,418
2,157,389,877
1998
2,305,593,987
18,844,880
2,324,438,867
9,676,787
24,877,018
2,289,885,062
1999
2,674,887,437
18,756,736
2,693,644,173
10,998,340
27,581,722
2,655,064,111
2000
2,665,520,656
18,712,736
2,684,233,392
11,655,584
28,259,200
2,644,318,608
2001
3,162,945,116
30,599,753
3,193,544,869
19,757,668
30,391,400
3,143,395,801
2002
3,789,678,041
32,607,713
3,822,285,754
20,732,503
33,993,800
3,767,559,451
2003
5,412,382,710
40,940,877
5,453,323,587
50,878,475
44,541,600
5,357,903,512
2004
6,289,493,552
44,014,548
6,333,508,100
67,025,403
46,011,600
6,220,471,097
Source: County of Riverside
141
TABLE 5
CITY OF LA QUINTA
Property Tax Rates - Direct and Overlapping Governments
Last Five Fiscal Years (per $100 of Assessed Value)
Source:
Coiinty of Riverside
142
2003104
2002103
2001102
2000 0
1999100
General
1.00000
1.00000
1.00000
1.00000
1.00000
County of Riverside
0.00905
0.00938
0.00985
-
-
Riverside County Office of Education
0.00905
0.00938
0.00985
-
-
Desert Sands Unified
0.27443
0.46088
0.35177
0.09750
0.09750
Coachella Valley Unified School District
0.09267
0.06845
0.05022
-
-
Coachella Valley Water District
0.55458
0.62057
0.56885
0.02080
0.02080
Coachella Valley Recreation & Park District
0.07762
0.07856
-
-
-
Total Tax Rate
2.01740
2.24722
1.99054
1.11830
1.11830
Source:
Coiinty of Riverside
142
TABLE 6
CITY OF LA QUINTA
Special Assessment Billings and Collections
Last Ten Fiscal Years
Year
Special
Special
Ratio of
Ended
Assessment
Assessment
Collections
June 30
Billings
Collections (l)
to Billings
1993
559,029
548,291
98.0%
1994
766,011
734,560
95,9%
1995
836,502
737,700
88.2%
1996
729,647
699,351
95.9%
1997
791;012
757,256
95.7%
1998
791,012
761,109
96.2%
1999
790,532
770,164
97.4%
2000
833,630
800,825
96.0%
2001
835,577
803,756
96.2%
2002
1,068,994
992,226
92.8%
2003
860,684
790,555
91.9%
2004
871,833
804,818
92.3%
(1) Includes Prepayments and Foreclosures
Source: Muni Financial Services
143
CITY OF LA QUINTA
Schedule of Direct and Overlapping Bonded Debt
June 30, 2004
Direct and Overlapping Bonder Debt
Riverside County General Fund Obligations
Riverside County Board of Education Certificates of Participation
Desert Sands Unified School District Certificates of Participation
Desert Sands Unified School District Lease Tax Obligation
Desert Sands Unified School District Community Facilities No.1
Desert Sands Unified School District
Coachella Valley County Water District, I.D. #71 Storm Water Unit
Certificates of Participation
Coachella Valley County Water District, I.D. #55
Coachella Valley County Water District, I.D. #58
Coachella Valley Unified School District Certificates of Participation
Coachella Valley Unified School District
Coachella Valley Water District, AD No. 68
Coachella Valley Recreation and Park District Certificates of Participation
City of La Quinta General Fund Obligations (Finance Authority)
City of La Quinta 1915 Act Bonds
Total Direct and Overlapping Bonded Debt
Note: (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue,
tax allocation bonds and nonbonded capital lease obligations.
Source: California Municipal Statistics, Inc.
144
TABLE 7
Percent
June 30, 2004
Applicable
Bonded Debt
4.216
191,406
0.905%
$5,910,417
0.905%
119,098
7.733
1,199,388
7.733
1,939,050
100.000
2,155,000
7.733
4,794,460
6.298
660,345
66.678
5,087,531
4.216
191,406
9.267
1,760,730
9.267
1,690,234
86.247
2,160,487
7.762
210,350
100.000
6,890,000
100.000
3,735,000
$38,503,496 (1)
CITY OF LA QUINTA
Computation of Legal Debt Margin
June 30, 2004
Net Assessed Valuation
Debt Limit - 15 % of Assessed Valuation
Amount of Debt Applicable to Debt Limit
Legal Debt Margin
Notes:
Source:
TABLE 8
$6,2201471,097
933,070,665
-0-
$933,070,665
Section 43605 of the Government Code of the State of California limits
the amount of indebtedness for public improvements to 15% of the assessed
valuation of all real and personal property of the City.
The City of La Quinta has no general bonded indebtedness.
City of La Quinta
145
Fiscal Year
Ending
June 30
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Note:
Source:
TABLE 9
CITY OF LA QUINTA
Revenue Bond Coverage
Local Agency Revenue Bonds (City Hall Project)
Last Ten Fiscal Years
Revenue available consists of lease payments made by the City of La Quinta to
the La Quinta Financing Authority.
City of La Quinta
146
Debt Service Re uirements
Revenue Available
for Debt Service
Principal
Interest
Total
Coverage
548,352
-
548,352
548,352
1.00
699,477
155,000
544,477
699,477
1.00
696,402
160,000
536,402
696,402
1.00
607,950
170,000
437,950
607,950
1.00
734,623
285,000
449,623
734,623
1.00
684,573
245,000
439,573
684,573
1.00
679,670
250,000
429,670
679,670
1.00
678,955
260,000
418,955
678,955
1.00
682,178
275,000
407,178
682,178
1.00
679,435
285,000
394,435
679,435
1.00
680,830
300,000
380,830
680,830
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
146
TABLE 10
CITY OF LA QUINTA
Demographic Statistics
Last Ten Fiscal Years
Source: (1) City of La Quints
(2) State of California Department of Finance
147
Total
City
Fiscal Year
Population
Riverside
Population
Ending
Square
Percent
County
Percent
June 30
Miles (1)
Population (2)
Chan&e
Population (2)
Of County
1994
28.2
16,680
7.0%
1,357,400
1.2%
1995
31.2
17,591
5.5%
1,393,500
1.3%
1996
31.2
18,050
2.6%
1,381,879
1.3%
1997
31.2
18,931
4.9%
1,379,956
1.4%
1998
31.2
20,444
8.0%
1,441,237
1.4%
1999
31.2
21,763
6.5%
1,473,307
2.2%
2000
31.2
24,240
10:77%a
1,522,900
1.6%
2001
31.2
26,321
8.58%
1,545,387
1.7%
2002
31.8
28,715
9.09%
1,545,387
1.9%
2003
34.8
30,452
6.00%
1,653,564
1.8%
2004
35.1
32,522
6.80%
1,782,650
1.8%
Source: (1) City of La Quints
(2) State of California Department of Finance
147
Fiscal Year
Ending
June 30
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
(1)
Source:
CITY OF LA QUiNTA
Property Value and Construction Activity
Last Ten Fiscal Years
Property
Value i
1,872,768,156
1,927,834,908
2,043,276,054
2,164,204,951
2,305,593,987
2,674;887,437
2,665,520,656
3,162,945,116
3,789,678,041
5,412,382,710
6,289,493,552
Commercial
Construction
Units
Value
13
6,081,796
4
1,100,119
8
1,018,940
11
1,876,747
14
2,689,642
19
8,894,767
40
13,071,684
39
15,289,134
66
6,739,720
69
27,184,625
154
38,232,129
From Schedule of Net Taxable Value
City of La Quinta
148
TABLE 11
Residential
Construction
Units
Value
531
79,318,969
238
29,163,494
336
53,973,239
322
36,971,047
461
70,403,691
770
132,521,054
1,590
292,524,629
1,069
195,774,186
858
171,189,651
831
176,514,682
1,406
244,446,101
CITY OF LA QUINTA
Principal Taxpayers
June 30, 2004
Taxpayer
Tie of Activity
KSL La Quinta Hotel Corp.
Hotel
KSL PGA West Corporation
Residences
Sunrise Desert Partners
Condominiums
KSL Landmark Corporation
Vacant Land
KSL Land Corporation
Residential Land
KSL La Quinta Corporation
Golf Courses
TD Desert Development
Residential Land
La Quinta Golf Properties, Inc.
Golf Course
M & H Realty Partnership
Shopping Centers
Washington Adams Partnership
Commercial
Source: City of La Quinta
10%
TABLE 12
TABLE 13
CITY -OF LA QUINTA
Major Employers
June 30, 2004
m to er
Employees
ActivLty
La Quinta Hotel and Golf Resort
1,500
Resort Hotel
PGA West
1,100
Golf Resort
Desert Sands Unified School District
550
School District Administration
Wal-Mart
250
Retailer
Rancho La Quinta
200
Golf Resort
The Home Depot
180
Retailer
Lowe's Home Improvement
150
Retailer
Stater Brothers
126
Groceries
Imperial Irrigation District
110
Utility Company
Vons
103
Groceries
Ralph's
100
Groceries
Tradition
97
Golf Resort
City of La Quinta
78
Municipal Government
Cliff House
75
Restaurant
Source: City of La Quinta
150
Comfy Name
Hartford
Lexington
Policy Number
PEBA07068
7818689
Landmark Amer K2HQ407478
California Certificate #5
Joint Powers
Insurace Authority
California Certificate
Joint Powers #5009-056
Insurance Authority
Source: City of La Quinta
TABLE 14
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2004
Coverage
Limits
Teruo
Preniiui
Employee Dishonesty,
$1,000,000
12/03/03 - 04
$3,000
Forgery, Computer Fraud
All Risk Property Insurance
29,683,900
07/01/04 - 05
27,135
Including Auto Physical Damage
(Excluding Earthquake)
Earthquake & Flood
7,500,000
02/07/04 - 05
32,510
Real & Personal Property
Including Contigent Tax Interruption
Comprehensive General
$0 Deductible Retention
07/01/04 - 05
272,578
Liability
• $50 Million
Worker's Compensation
5,000,000
07/01/04 - 05
240,955
151
TABLE 15
CITY OF LA QUINTA
Miscellaneous Statistical Data
June 30, 2004
Date of Incorporation ..................... . ..........May 2, 1982
Type of City ............. . .................. Charter City
Form of Government ...........................Council/ Manager
City Employees .................................. 78
City Land Area (square miles) .................................... 35.1
Population ................................... 32,522
Number of Parks .................................. 12
Total Acreage .................. ...........,. 211
Miles of Streets ................................... 118.0
Miles of Bike Paths .................................. 9.7
Number of Major Intersections ... ............................ 45
Number of Traffic Signals and Safety Lighting ....................... 42
Number of Traffic Signs ........ I ....................... 2,712
Number of Street Lights ................... 84
Public Schools .............. I .................. 4
Private Schools .................................. 1
Churches ................................. 3
Banks / Savings and Loan .................................. 7
Number of Single Family Units - Detached .......................... 13,164
Number of Single Family Units - Attached .......................... 2,360
Number of Multiple Family Units . . .............................. 1,071
Number of Mobile Homes ................................. , 259
Source: City of La Quinta
152
!ABLE 16
CITY OF LA QUINTA
General Fund Balance Trends
Last Ten Fiscal Years
Fiscal Year
Ending
Reserved
Unreserved
Totals
June 30
IDesignated Undesip,aated
1994
4,354,139
3,792,864 --
8,147,003
1995
6,1.00,309
4,228,680 --
10,328,989
1996
6,680,048
5,686,027 --
12,366,075
1997
8,202,641
5,936,591 --
14,139,232
1998
8,915,742
8,568,017
17,483,759
1999
8,879,558
14,439,998 -
23,319,556
2000
10,565,563
18,111,835 --
28,677,398
2001
11,746,211
23,878,259
35,624,470
2002
15,351,251
25,522,073 --
40,873,324
2003
21,099,910
26,584,773 --
47,684,683
2004
29,210,757
25,494,479 --
54,705,236
Source:
City of La Quinta.
153
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