2004-2005 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF LA QUINTA
La Quinta, California
H
Comprehensive Annual Financial Report
Year Ended June 30, 2005
CITY OF LA QUINTA
La Quinta, California
Comprehensive Annual Financial Report
Year ended June 30, 2005
Prepared by
FINANCE DEPARTMENT
JOHN M. FALCONER
Director of Finance
(This page intentionally left blank)
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i
List of Principal Officials viii
Organizational Chart ix
Certificate of Award for Outstanding Financial Reporting (CSMFO) x
Certificate of Achievement for Excellence in Financial Reporting (GFOA) xi
FINANCIAL SECTION
Independent Auditors' Report
1
Management's Discussion and Analysis (Required Supplementary Information)
3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
17
Statement of Activities
18
Fund Financial Statements:
Governmental Funds:
Balance Sheet
20
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
23
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, 2005
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued)
Notes to the Basic Financial Statements
31
REQUIRED SUPPLEMENTARY INFORMATION:
Notes to Required Supplementary Information
75
Budgetary Comparisofn Schedules:
General Fund
76
SUPPLEMENTARY SCHEDULES:
Non -Major Governmental Funds:
Combining Balance Sheet
80
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
81
Non -Major Special Revenue Funds:
Combining Balance Sheet
84
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
86
Budgetary Comparison Schedules:
State Gas'Tax Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 88
Federal Assistance Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 89
State Law Enforcement Block Grant (SLEBG) Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 90
Indian Gaming Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 91
CITY OF LA QUINTA
Comprehensive Annual Financia] Report
Year ended June 30, 2005
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued)
Lighting and Landscape Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
92
Riverside County Transportation Commission (RCTC) Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
93
Quimby Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
94
Public Safety Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
95
Arts in Public Place Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
96
Urban Forestry Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
97
South Coast Air Quality Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
98
Congestion Management Air Quality (CMAQ) Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
99
Low/Moderate Income Housing Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances —Budget and Actual
100
Low/Moderate Income Housing Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
101
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued)
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
104
Redevelopment Agency Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
105
Financing Authority Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
106
Major and Non -Major Capital Projects Funds:
Combining Balance Sheet
108
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
110
Budgetary Comparison Schedules:
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
112
Redevelopment Agency Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
113
2004 Low/Moderate Income Bond Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
114
Infrastructure Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
115
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued)
Transportation Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
116
Parks and Recreation Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
117
Civic Center Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
118
Library Development Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
119
County Library Development Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
120
Community Center Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
121
Street Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
122
Park Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
123
Fire Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
124
Assessment District 2000-1 Phase VI Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
125
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2005
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 126
Redevelopment Agency Taxable Bond Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 127
Financing Authority Capital Projects Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 128
Internal Service Funds:
Combining Statement of Net Assets
130
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
131
Combining Statement of Cash Flows
132
Agency Funds:
Combining Balance Sheet
134
Statement of Changes in Assets and Liabilities
136
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source
140
Schedule by Function and Activity
141
Schedule of Changes by Function and Activity
142
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2005
TABLE OF CONTENTS Continued
Table No.
Page
STATISTICAL SECTION
General Fund Expenditures by Function
1
144
General Fund Revenues by Source
2
145
Property Tax Levies and Collections
3
146
Schedule of Net Taxable Value
4
147
Property Tax Rates - Direct and Overlapping Governments
5
148
Special Assessment Billings and Collections
6
149
Schedule of Direct and Overlapping Bonded Debt
7
150
Computation of Legal Debt Margin
8
151
Revenue Bond Coverage
9
152
Demographic Statistics
10
153
Property Value and Construction Activity
11
154
Principal Taxpayers
12
155
Major Employers
13
156
Schedule of Insurance in Force
14
157
Miscellaneous Statistical Data
15
158
General Fund Balance Trends
16
159
(This page intentionally left blank)
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLF TAMPICO (760) 777-7000
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
August 18, 2005
To the Honorable Mayor, Members of the Governing Council, and Citizens of the
City of La Quinta, California:
Government Code 26909 (a) requires that the City, as a local agency of the
County, contract with a certified public accountant to perform an annual audit of
the accounts and records of the City and that the audit conform to generally
accepted auditing standards.
Further, Government Code 26909 (b) states that an audit report shall be filed with
the State Controller and with the County Auditor of the County in which the
district is located within 12 months of the end of the fiscal year.
This report is published to fulfill these requirements for the fiscal year ended June
30, 2005.
In addition, City Ordinance 2.12.040 requires an annual audit be performed by a
certified public accountant.
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework c 1
internal control that it has established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Conrad & Associates, LLP, Certified Public Accountants, have issued an unqualified
opinion on the City of La Quinta financial statements for the year ended June 30,
2005.
The independent auditor's report is located at the front of the financial section of
this report.
Management's discussion and analysis (MD&A) immediately follows the
independent auditor' :s rel :ort and provides a narraAw.),e introduction, overview, and
analysis of.the basic financial state rnent.' .
The MD&A complements the letter of transmittal and should be read in conjunction
with it.
Profile of the Government
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 Mayor serves a two-year term and the four Council members
serve four-year terms, with two Council members elected every two years. The
Mayor and four council members are elected at large.
The City was originally incorporated in 1982 as a general law City and it became a
charter City in November 1996.
The Council appoints the City Manager, who in turn appoints the Assistant City
Manager and the heads of the various departments.
The City of La Quinta provides a range of services which include: construction and
maintenance of streets and other infrastructure; community development and
planning; construction and code compliance; various recreational and cultural
activities; and general municipal services.
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 and 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.
The City of La Quinta also is financially accountable for a legally separate
Redevelopment Agency and Financing Authority.
Additional information on these two legally separate entities can be found in the
notes to the financial statements.
Pursuant to City Ordinance 2.08.060 and 2.12.030, the City Manager and Finance
Director are responsible for the preparation of the annual budget for City Council
consideration prior to the start of the fiscal year.
ii
The annual budget serves as the foundation for the City of La Quinta's financial
planning and control.
The budget is prepared by fund, function, department and line item.
Department heads may transfer line item resources within a division with the
approval of the City Manager. Transfers between divisions and departments need
approval from the City Council and the City Manager.
Local econorny
According to the State of California Economic Development Department (EDD), as
of July 2005, the total workforce for the City of La Quinta was 13,800 of which
13,400 were employed for a 2.7% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.5% and the statewide
unemployment rate of 5.4%.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.06 billion in FY 95/96 to $6.34 billion or
over 300%.
This major increase in assessed value consists primarily of residential development;
however, in the last two years major commercial development has occurred along
the Highway 111 corridor. New commercial development includes the recent
opening of the following retailers in alphabetical order: Circuit City, Kohl's,
Marshals, Petsmart, Ross Dress 4 Less, SteinMart, Target, Wal-Mart. These
compliment the Home Depot and Lowes that have previously located in the City.
In addition, the City is anticipating the opening of an Embassy Suites Hotel,
Homewood Suites Hotel, Sams Club, and Costco in 2006.
One auto dealer, the Mazda Superstore, has closed and was replaced by a Kia
dealership and the local Chevrolet dealership has indicated that they may move
from their present location of over twenty years to a neighboring city.
The City of La Quinta is also home to many fine restaurants, which include the
Hogs Breath Inn, Arnold Palmer Restaurant, LG's and The Falls Prime Steak
houses, the Cliff House and Omri and Boni's.
The City of La Quinta has transformed itself from a retirement community known
as the "Gem of the Desert" and the western home of golf to a year-round full-
service community.
Major employers include the hospitality industry — the La Quinta Resort and Club,
PGA West, Desert Sands Unified School District, Wal-Mart, Rancho La Quinta, and
Lowe's.
iii
During the past ten years, the City of La Quinta general fund expenditures have
increased 360%.
Departments that have exceeded the average include Public Works (832%),
Community Services (555%) and Public Safety (393%). In the case of Public
Works, much of the increase can be attributed to increases in street, landscape and
park maintenance costs. Community Services increases can be attributed to
opening the Senior Center, and increases in recreational and community outreach
programs. In the case of Public Safety, much of the increase is reflected in
increased police and fire service personnel costs and higher levels of service.
During the same ten-year period, the City of La Quinta general fund revenues
increased 409%. Sources that exceeded the average include intergovernmental
0 010%), charges for services (617%) and interest earnings (451 %). In the case
of intergovernmental revenues, most of the increase is attributable to the way the
fire service contract is accounted for and an increase in motor vehicle fees. The
Charges for Services increase is due to the volume of activity occurring in the City,
and in the case of interest, the increase is due to greater General Fund reserves and
additional advances between the General Fund and the Redevelopment Agency.
Long-term financial planning
Each year the City embarks on a strategic planning process which begins in the
spring with a discussion of the City Council goals and ends with adoption of the
budget in June.
The documents that are generated in this strategic planning process include a
presentation of the financial achievements for the past fiscal year, a five-year cash
flow projection for each City, Redevelopment Agency and Financing Authority
fund, and a financial management strategies and recommendation report for the
coming fiscal year. Within the financial strategies and recommendation report, a
"build out" analysis is included, which estimates the annual General Fund revenue
(inflows) and expenditures (outflows) in thirty years. This build out analysis is
updated every three years based upon future land use designations, existing land
use and population projections.
This build out report projects that in thirty years, with an estimated population of
68,500 versus the current 35,000, the annual revenues into the General Fund will
be $18.9 million less than expenditures. With this information, the City of La
Quinta is attempting to attract revenue-producing businesses and hotels consistent
with its land use planning, while at the same time providing current and future
residents a level of service that makes them proud to call La Quinta their home.
During Fiscal Year (FY) 04/05, the General Fund balance increased by $9.2 million
consisting of revenue increases in each category: taxes, license and permit fees,
iv
charges for services, intergovernmental and interest earnings. In addition,
expenditures were less than budgeted in police, fire and street operation divisions.
The General Fund Balances as of June 30, 2005 was $63.9 million of which $32.4
million was reserved and $31.5 million was unreserved with designations. These
designations include an emergency reserve set at 35% of the annual budget plus
$4,000,000 and a cash flow reserve of 8.25% of the annual budget. Other
designations of the General Fund balances at year end can be found in the
Footnotes to the Financial Statements.
Additional components of the strategic planning process include the Economic
Development Plan, the Capital Improvement Program, the Annual Budget and the
Five -Year Resource Allocation Plan. An explanation of each of these documents is
provided below.
Economic Development Plan
This plan outlines a vision and direction for the City's economic development
activities. It presents the mission statement, implementation policies, projected
resources, and business plan the City and the La Quinta Redevelopment Agency
will follow to sustain a comprehensive economic development effort. It is goal -
oriented in that the economic development efforts specified in the plan are a key to
generating the financial resources necessary to support both the Resource
Allocation Plan and the Capital Improvement Plan.
Capital Improvement Plan
This plan is primarily a planning document that establishes five-year funding
priorities for capital improvements. This plan also includes a listing of all the other
desired capital improvements that cannot, or need not, be funded within the five-
year horizon and totaled $78.1 million.
Five -Year Resource Allocation Plan
This plan is primarily a planning document that provides a five-year horizon for
forecasted operational needs of each department, as well as the City as a whole.
This plan is a cyclical review of all operations expenditures to reassess funding
mechanisms behind personnel responsibilities and the various service levels of all
programs.
Annual Budget
This document is the annual implementation tool for the overall planning process.
The budget will encompass each element of the strategic planning effort and will
implement: the goals of the Economic Development Plan; the resource and demand
allocation outlined in the Five -Year Resource Allocation Plan; and the capital
improvement investment for a given year.
Relevant financial policies
The State of California has mandated that the City of La Quinta, pursuant to State
of California Revenue and Taxation Code Section 97.70, contribute $332,000 from
the General Fund in FY 04/05 and a similar amount in FY 05/06 to meet the State
budget crisis. Also, since FY 02/03 through FY 04/05, the La Quinta
Redevelopment Agency has contributed $5 million to the State of California
pursuant to State of California Health and Safety Code 33681.12 to meet its
budget shortfalls. The La Quinta Redevelopment Agency contribution in FY 04/05
was $2.7 million and it is anticipated that an additional $3 million contribution will
be made in FY 05/06. The $8.65 million of funds that either have or will be
diverted to the State will not be available for uses within the City of La Quinta.
The City of La Quinta did receive $516,000 in August 2005 that had previously
been withheld by AB 1457 from the State. This Vehicle License Fee Backfill Gap
Loan shift has been recognized in the General Fund in FY 04/05, as it was
measurable and available as of June 30, 2005 and it pertained to a prior
accounting period.
Major initiatives
The City has been working with the Coachella Valley Association of Governments
in acquiring right of way ($6 million) in the City of La Quinta to widen Jefferson
Street between Highway 111 and Interstate 10 from two lanes to six lanes. The
construction phase ($23 million) is now underway with improvements to include
the construction of a six -lane bridge over the Whitewater Channel, which will
provide an all-weather crossing. Last year, the low-water crossing at Jefferson
Street and the Whitewater Channel was washed out several times from winter
rains that hit the region.
The La Quinta Financing Authority issued $90 million in bonds ($65 million in new
funds) to develop low and moderate income housing to meet State mandates. The
La Quinta Redevelopment Agency will be repaying the debt service from the bond
issue with property tax increment funds. The Agency will be spending a
considerable amount of effort to acquire sites and facilitate the development of
these units in the upcoming years.
The La Quinta Redevelopment Agency acquired a 525 -acre parcel at Avenue 52
and Jefferson Street for the development of two golf courses, a clubhouse, and
future hotel resort development. The first golf course was dedicated in January
2005 and the Agency is working with a developer in the planning stages for a
future hotel(s) and the second golf course.
Vi
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of La Quinta for its
comprehensive annual financial report (CAFR) for the fiscal year ended June 30,
2004.
This was the eighth consecutive year that the government has received this
prestigious award.
In order to be awarded a Certificate of Achievement, the government had to
publish an easily readable and efficiently organized CAFR that satisfied both
generally accepted accounting principles and applicable legal requirements. A
Certificate of Achievement is valid for a period of one year only.
We believe that our current CAFR continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
The preparation of this report would not have been possible without the efficient
and dedicated service of the finance department staff. Credit also must be given to
the Mayor and City Council for their support in maintaining the highest standards of
professionalism in the management of the City of La Quinta's fi nances.
Respectfully submitted,
Thomas P. Genovese John M. Falconer
City Manager Finance Director
City of La Quinta
Directory of Officials
June 30, 2005
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
Doug Evans, Community Development Director
Kathy Jenson, City Attorney
Dodie Horvitz, Community Services Director
June Greek, City Clerk
Tim Jonasson, Public Works Director/City Engineer
MW
w
O
i
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Quinta,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
r
ITAi8
asPresident
Executive Director
Xi
(This page intentionally left blank)
xii
CONRADAND CERTIFIED PUBLIC ACCOUNTANTS
ASSOCIATES, L.L.P. 2301 DUPRV NOENT DRIVE,CA IFORN AI 92600
(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 govenunental activities, the
business -type 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, 2005, 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 the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perforin 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, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of La Quinta, California,
as of June 30, 2005, 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 are not a required part of the basic
financial statements but are supplementary information required by accounting principles
generally accepted in the United States of America. 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.
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
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 normaajor 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
staternents 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.
In accordance with Government Auditing Standards, we have also issued a report dated August
18, 2005 on our consideration of the City's internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
August 18, 2005
Management's Discussion and Analysis
As management of the City of La Quinta, we offer readers of the City of La
Quinta's financial statements this narrative, overview and analysis of the financial
activities for the fiscal year ended June 30, 2005. We encourage readers to
consider the information presented here in conjunction with additional information
that we have furnished in our letter of transmittal, which can be found in an earlier
section of this report. All amounts, unless otherwise indicated, are rounded to the
nearest thousands of dollars.
Financial Highlights
® The assets of the City of La Quinta exceeded its liabilities at the close of the
most recent fiscal year by $377,818,000 (net assets). Of this amount,
$60,284,000 (unrestricted net assets) may be used to meet the government's
ongoing obligations to citizens and creditors.
d The government's total net assets increased by $38,387,000. $41,832,000 of
this increase is attributable to the new Business -type Activity — SilverRock Golf
Course.
• As of the close of the current fiscal year, the City of La Quinta's governmental
funds reported combined ending fund balances of $177,542,000, a decrease of
$2,427,000 in comparison with the prior year. Approximately 8 percent of this
total amount, $14,643,000, is available for spending at the government's
discretion (unreserved, undesignated fund balance).
• At the end of the current fiscal year, the operations/projects/transfers
designations comprised $10,699,419 or 42 percent of total general fund budgeted
expenditures.
• The City of La Quinta's total debt decreased by $2,801,000 during the current
fiscal year from $254,321,000 to $251,520,000 through normally scheduled debt
service payments.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of
La Quinta's basic financial statements. The City of La Quinta's basic financial
statements comprise three components: 1) government -wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial
statements themselves.
3
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a
broad overview of the City of La Quinta's finances, in a manner similar to a private -
sector business.
The statement of net assets presents information on all of the City of La Quinta's
assets and liabilities, with the difference between the two reported as net assets.
Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City of La Quinta is
improving or deteriorating.
The statement of activities presents information showing how the
government's net assets changed during the most recent fiscal year. All
changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., earned but unused
vacation leave).
Both of the government -wide financial statements distinguish functions of the
City of La Quinta that are principally supported by taxes and intergovern-
mental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees
and charges (business -type activities). The governmental activities of the City
of La Quinta include general government, public safety, community services,
community development and public works. The business -type activities of the
City of La Quinta include the SilverRock Golf course operations.
The government -wide financial statements include not only the City of La
Quinta itself (known as the primary government), but also the La Quinta
Redevelopment Agency and the La Quinta Financing Authority. Although,
legally separate entities, function for all practical purposes as departments of
the City of La Quinta, and therefore has been included as an integral part of
the primary government.
The government -wide financial statements can be found in the table of
contents under the Financial Section this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The
City of La Quinta, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City of La Quinta can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds.
4
Governmental funds
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial state-
ments. However, unlike the government -wide financial statements,
governmental fund financial statements focus on near-term inflows and
outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the govern-
ment -wide financial statements, it is useful to compare the information
presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's
near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in
fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of La Quinta maintains thirty five (35) individual governmental funds,
which are distinguished between major and non -major funds. Information is
presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund
balances for the general fund, three (3) debt service funds and three (3) capital
project funds. These seven (7) funds are considered to be major funds. Data
from the other twenty eight (28) governmental funds are combined into a sin-
gle, aggregated presentation. Individual fund data for each of these non -major
governmental funds is provided in the form of combining statements elsewhere
in this report.
The City of La Quinta adopts an annual appropriated budget for its general
fund. A budgetary comparison statement has been provided for the general
fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found in the table of
contents under the heading Basic Financial Statements.
Proprietary funds
Proprietary funds can be broken down into enterprise and internal service
funds. The City of La Quinta maintains one (1) proprietary fund. Enterprise
funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City of La Quinta
uses an enterprise fund to account for its SilverRock Golf Course operations,
which is considered to be a major fund. Internal service funds are an accounting
6i
device used to accumulate and allocate costs internally among the City of La
Quinta's various functions. The City of La Quinta has three (3) internal service
funds to account for its major equipment replacement including vehicles, for its
information technology systems, and for its park equipment and facility needs.
Because these three services predominantly benefit governmental rather than
business -type functions, they have been included within governmental activities
in the government -wide financial statements. The internal service funds are
combined into a single, aggregated presentation in the proprietary fund
financial statements. Individual fund data for the internal service funds is provided
in the form of combining statements elsewhere in this report
The basic proprietary fund financial statements can be found on the pages listed in
the table of contents for Proprietary Funds: Statement of Net Assets, Statement of
Revenues, Expenditures and Changes in Net Assets, 'and Statement of Cash Flows.
Fiduciary funds
Fiduciary funds, also called agency funds, are used to account for resources held
for the benefit of parties outside the government. Fiduciary funds are not reflected
in the government -wide financial statement because the resources of those funds
are not available to support the City of La Quinta's own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on the pages listed in
the table of contents for Fiduciary Funds: Statement of Fiduciary Assets and
Liabilities — Agency Funds.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of
the data provided in the government -wide and fund financial statements: The notes
to the financial statements can be found on the pages listed in the table of
contents for Notes to the Basic Financial Statements.
Other information
In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City of
La Quinta's General Fund and its budget appropriations. Required supplementary
information can be found in the table of contents under the section Required
Supplemental Information and includes Notes to the Required Supplementary
Information and a General Fund Budgetary Comparison Schedule.
The combining statements referred to earlier in connection with non -major govern-
mental funds, internal service funds, and agency funds are presented immediately
following the required supplementary. Combining and individual fund statements
and schedules can be found in the table of contents under Supplementary
Schedules.
9
Government -wide financial analysis
As noted earlier, net assets may serve over time as a useful indicator of a govern-
ment's financial position. In the case of the City of La Quinta, assets exceeded
liabilities by $377,818,000 at the close of the most recent fiscal year, which is
$39,173,000 greater than the previous year.
The largest portion of the City of La Quinta's net assets (50 percent versus 74
percent in the prior year) reflects its investment in capital assets (e.g., land,
buildings; machinery, and equipment); less any related debt used to acquire those
assets that is still outstanding. The City of La Quinta uses these capital assets to
provide services to citizens; consequently, these assets are not available for future
spending. Although the City of La Quinta's investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
City of La Quinta Net Assets
Current and other assets
Governmental activities
2005 2004
$ 204,173,979 $ 206,488,111
Business -type activities
2005 2004
$ (270,691) $
Total
2005
$ 203,903,288 $
2004
206,488,111
Capital assets
397,555,192
398,685,644
42,102,263
439,657,455
398,685,644
Total assets
601,729,171
605,173,755
41,831,572
643,560,743
605,173,755
Current liabilities
13,866,654
12,208,061
355,967
14,222,621
12,208,061
Non-current liabilities
250,718,460
254,320,900
801,417 -
251,519,877
254,320,900
Total liabilities
264,585,114
266,528,961
1,157,384
265,742,498
266,528,961
Net assets:
Invested in capital assets,
net of related debt
147,385,759
249,059,500
41,300,846 _
188,686,605
249,059,500
Restricted
129,397,065
44,415,956
-
129,397,065
44,415,966
Unrestricted
60,361,233
45,169,328
(626,658) -
59,734,575
45,169,328
Total net assets
$ 337,144,057
$ 338,644,794
$ 40,674,188 $ -
$ 377,818,245 $
338,644,794
An additional portion of the City of La Quinta's net assets (34 percent versus 13
percent in the prior year) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net
assets - $59,735,000 (16 percent versus 13 in the prior year) may be used to
meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of La Quinta is able to report positive
balances in all three categories of net assets, both for the government as a whole,
as well as for its separate governmental activities; however, the business type
unrestricted net assets had a deficit of $627,000.
There was an increase of $41,301,000 in the investment in capital assets (e.g.,
land, buildings; machinery, and equipment), less any related debt used to acquire
those assets that is still outstanding in restricted net assets reported in connection
7
with the City of La Quinta's business -type activities. This increase was a result of
recording the assets of the SilverRock Golf Course in the fiscal year.
Governmental activities
Governmental activities decreased net assets by $1,500,737 accounting for less
than a 1 percent change in the net assets from the previous year. Key elements of
these changes are as follows:
City of La Quinta Changes in Net Assets
Governmental Business -type
activities activities Total
Program revenues:
Charges for services 8.706,920 7,071,404 1,635,516 1,091,836 7.091.836 9.798.756 7,071,404 2,727,352
Operating grants and -- _ -_- — ... -1
revenues:
Increase in net assets
transfers
• Revenues increased by $19,633,000 with the two largest category increases in
capital grants and contributions ($6,501,280) and gain on sale of capital assets
($3,717,470). Capital grants and contributions increases were a result of
increased developer impact fee collections, Quimby fee collections and interest
income generated from unspent bond capital proceeds. The gain on the sale of
property stemmed from Redevelopment Agency property sold at Miles Avenue and
Washington Street and Avenue 48 and Adams Street for more than was paid.
Both of these properties had been purchased in 1995.
Expenditures increased by $4,173,000 with the two largest category increases in
interest on long-term debt ($5,606,000) and Public Works ($3,098,000). The
increase in debt service costs is a result of the $90 million Financing Authority
bond issue debt service payments, which began in the fiscal year. The increase in
the Public Works costs is a result of a large slurry seal program expenditure in the
fiscal year and increasing lighting/park maintenance costs.
E:3
- A transfer out of $41,460,000 in assets from the governmental activities to the
business -type activities which consist of land and improvements for the SilverRock Golf
course.
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
I
8,000,000
6,000,000
4,000,000
2,000,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
600,000
600,000
400,000
200,000
Expenses and Program Revenues - Government Activities
19.039,663
General Public safety Community Planning and
government services development
Public works
15,265,051
Interest expense
Expenses and Program Revenues- Business -type Activities
Golf
Business -type activities
0 Expenses
0 Program revenues
This was the first year for the SilverRock Golf fund since the golf course began
early operation in 2005.
Net assets increased to $40,674,000 from the transfer of assets from the
governmental activities of $41,460,000 and an operating loss of $(785,000).
9
Charges for services primarily consisted of green fees and totaled $1,092,000
with golf course expenses of $1,877,000.
Financial Analysis of the Government's Funds
As noted earlier, the City of La Quinta uses fund accounting to ensure and
demonstrate compliance with finance -related legal requirements.
Governmental funds - The focus of the City of La Quinta's governmental funds
is to provide information on near-term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the City of La
Quinta's financing requirements. In particular, unreserved fund balance may
serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of La Quinta's governmental funds
reported combined ending fund balances of $177,542,000, a decrease of
$2,427,000 in comparison with the prior year. Approximately 26 percent of this
total amount ($45,377,000) constitutes unreserved, which is available for spending
at the government's discretion. The remainder of fund balance ($132,165,000) is
reserved or designated to indicate that it is not available for new spending because
it has already been committed 1) to pay debt service ($4,602,000), 2) to pay for
bond -related capital improvement projects ($85,970,000), 3) to advance funds to
other funds ($38,966,000), or 4) for a variety of other restricted purposes
($2,627,000).
General Fund
The general fund is the chief operating fund of the City of La Quinta. At the end of
the current fiscal year, unreserved fund balance of the general fund was
$31,514,000, while total fund balance reached $63,927,000. As a measure of the
general fund's liquidity, it may be useful to compare the fund balance total budgeted
expenditures (including transfers out). The total fund balance represents 217 percent
of the total budgeted expenditures.
The City of La Quinta's general fund balance increased by $9,222,000 during the
current fiscal year. Key factors in this growth are as follows:
* An increase of $4,011,000 in taxes over the final budget, of which $1,367,000
was in sales taxes (1 percent of the 7.75 percent collected going to the City), and
$853,000 was in document transfer taxes, signifying the new building and strong
resale market occurring in the City.
* An increase of $1,929,000 in charges for services over the final budget, which
represents increased development and building activity in the Public Works,
Community Development and Building and Safety departments.
10
An increase of $2,255,000 in licenses and permits over the final budget, which
represents increased development and building activity in the Building and Safety
department.
® An increase of $1,156,000 in intergovernmental revenue over the final budget,
which represents increased motor vehicle fees of $998,000 and fire service credit
revenues of $117,000. In FY 04/05, the State of California changed the
methodology of allocating vehicle fees from primarily a per capita basis to a property
tax basis. Therefore, instead of the City receiving a monthly remittance of the
vehicle fees from the State, it now receives a payment in January and a payment in
May from the County of Riverside.
Redevelopment Agency Project Area 2 Debt Service Fund
The Redevelopment Agency Project Area 2 Debt Service Fund is used to accumulate
resources, primarily property taxes, to pay debt service.
The fund balance increased by $3,865,000 during the current fiscal year. The key
factor in this growth was the sale of property at Washington Street and Miles
Avenue that generated $3,147,000 for the fund.
Redevelopment Agency Project Area 1 Capital Project Fund
The Redevelopment Agency Project Area 1 Capital Project Fund is used to account
for bond proceeds and other funding that is used for the development, planning,
construction and land acquisition in the project area.
The fund balance decreased by $16,962,000 during the current fiscal year. The key
factor in this decrease was the funding of $16,314,000 for the SilverRock project
and $854,000 for the Eisenhower Drive Rehabilitation and Median Island project.
Proprietary funds
The City of La Quinta's proprietary funds provide the same type of information found
in the government -wide financial statements, but in more detail.
The financial activities of the City enterprise fund have already been addressed in the
discussion of the City of La Quinta's business -type activities. In addition, the City
has three (3) internal service funds to accumulate resources for equipment and
vehicle replacement, information technology activities, and for park equipment and
facility replacement.
General Fund Budgetary Highlights
During the year there was a $2,561,000 increase in appropriations between the
original ($22,915,000) and final amended budget ($25,610,000). Following are the
main components of the increase:
11
9 $519,000 supplemental appropriation to the building and safety division for
additional building plan check and inspection services;
$975,000 supplemental appropriation to the street maintenance division for slurry
seal road improvements;
e $466,000 supplemental appropriation to the lighting and landscape division for
additional lighting and landscape maintenance costs.
The increase was possible because of additional anticipated revenues.
Capital Asset and Debt Administration
Capital assets
The City of La Quinta's investment in capital assets for its governmental and
business -type activities as of June 30, 2005, amounts to $439,657,000 (net of
accumulated depreciation). This investment in capital assets includes land, right of
way, buildings and improvements, machinery and equipment, streets and bridges,
and construction in progress. The investment in capital assets slightly decrease this
fiscal year from the sale of properties and from depreciation expenses exceeding
new purchases.
The following chart lists the asset categories for governmental and business like
activities net of depreciation.
City of La Quinta Capital Assets (net of depreciation)
Governmental Business -type
activities activities Total
2005 2004 2005 2004 2005 2004
Land
improvements 21,531,191 24,677,430 6,125,666 27,656,857 24,677,430
Equipment and furniture 557,774 1,583,727 980,759 1,538,533 1,583,727
,oc 7 ' ^)A IA7 i4 aiq _ A71 AQA 1 -224.147
Infrastructure '1JV'UDO'o ry
Construction in progress 27,794,113 27,932,823 - - 27,794,113 27,932,823
Total $ 397,555,192 $ 459,882,656 $ 42,102,263 $ - $ 439,657,455 S 459,88Z,tib6
Major capital asset events during the current fiscal year included the following:
Governmental activities
• Recording the land, building, and equipment for the north fire station, which
totaled $3,635,000;
s Recording the land, park buildings and equipment in the park equipment and
facility internal service fund, which totaled $14,216,000;
12
0 Recording infrastructure improvements, including developer dedications of
$5,796,000, to street improvements, street right of way, street sidewalks and
curbs and gutters, and street median, which totaled $14,601,000;
v Recording the land and acquisition costs for the Vista Dunes Mobile Home Park,
which totaled $4,486,000;
a Recording the sale of land in the Redevelopment Agency, which had a cost basis
of $4,742,000; and,
i Recording the transfer of assets, which was primarily land from the
Redevelopment Agency to the SilverRock Golf Enterprise Fund had a cost basis of
$17,156,000.
Business -type activities
® Recording the land, temporary clubhouse, maintenance building, and golf course
for the first golf course at SilverRock Resort, which totaled $ 42,102,000.
Additional information on the City of La Quinta's capital assets can be found in
Footnote 5 to the financial statements.
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $250,718,000. $155,395,000 of this debt amount represents bonds
secured solely by specified revenue sources (i.e., tax allocation bonds); while,
$94,522,000 of the debt represents revenue bonds that will be paid from pledged
tax increment property tax housing funds. In addition, $801,000 in capital
equipment leases are outstanding in connection with SilverRock Golf Course.
City of La Quinta Outstanding Debt
Governmental Business -type
The City of La Quinta's total debt decreased by $2,801,000 during the current fiscal
year.
Additional information on the City of La Quinta's long-term debt can be found in
notes 6 through 13 of the financial statements.
13
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta's budget for the
2006 fiscal year:
* The City of La Quinta had a 2.7 percent unemployment rate. This rate is
significantly lower than the Riverside County unemployment rate of 5.5 percent
and the statewide unemployment rate of 5.4 percent.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.06 billion in FY 95/96 to $6.34 billion or
over 300 percent.
e During the current fiscal year, the general fund net income was $9,222,000.
$1,070,000 of this amount has been designated to the general fund for carry over
appropriations and encumbrances.
The City of La Quinta adopted a balanced general fund budget for FY 05/06.
Requests for Information
This financial report is designed to provide a general overview of the City of La
Quinta's finances for all those with an interest in the government's finances.
Questions concerning any of the information provided in this report or requests for
additional financW information should be addressed to the City of La Quinta, John
Falconer, Finance Director, P.O. Box 1504, La Quinta, CA, 92247.
14
BASIC FINANCIAL STATEMENTS
15
(This page intentionally left blank)
16
Assets:
Cash and investments (note 2)
Cash and investments with
fiscal agent (note 2)
Accounts receivable
Taxes receivable
Prepaid items
Interest receivable
Notes receivable (note 4)
Internal balances
Due from other governments
Deposits
Inventory
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
Deferred revenue
Deposits payable
Retentions payable
Due to other govenulients
Noncurrent liabilities (notes 6 to 13)
Due within one year
Due in more than one year
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Restricted for:
CITY OF LA QUINTA
Statement of Net Assets
June 30, 2005
Govenuiiental Business -type
Activities Activities
$ 97,186,820 -
Totals
2005 2004
97,186,820 89,936,019
85,975,369
-
85,975,369
95,474,813
191,200
44,697
235,897
515,984
787,752
-
787,752
353,361
557,017
-
557,017
292,816
669,888
-
669,888
415,681
12,858,098
-
12,858,098
12,741,527
687,598
(687,598)
-
-
5,259,127
-
5,259,127
6,511,052
1,110
250,000
251,110
246,858
-
122,210
122,210
-
57,727,433
34,977,525
92,704,958
73,505,659
246,299,394
-
246,299,394
234,280,023
27,794,113
-
27,794,113
27,932,823
65,734,252
7,124,738
72,858,990
62,967,139
601,7297171 41,831,572 643,560,743 605,173,755
3,965,041
316,980
4,282,021
5,393,144
441,243
3,187
444,430
376,210
4,381,316
-
4,381,316
3,423,766
-
10,800
10,800
-
2,915,411
25,000
2,940,411
2,125;238
2,158,731
-
2,158,731
726,299
4,912
-
4,912
163,404
4,950,050
153,673
5,103,723
5,016,762
245,768,410
647,744
246,416,154
249,304,138
264,585,114
1,157,384
265,742,498
266,528,961
274,641,045 41,300,846 315,941,891 249,059,500
Public safety
2,845,076
- 2,845,076
8,413
Conuinmity services
58,963,246
- 58,963,246
58,393,632
Plamiuig and development
29,050,880
- 29,050,880
17,408,711
Public works
38,537,862
- 38,537,862
26,262,192
Unrestricted
(66,894,052)
(626,658) (67,520,710)
(12,487,654)
Total net assets
$ 337,144,057
40,674,188 377,818,245
338,644,794
See accompanying notes to the basic financial statements
17
CITY OF LA QUINTA
Statement of Activities
Year ended June 30, 2005
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Govenunental activities
General government
$ 3,595,906
445,663
-
-
Public safety
8,512,875
4,438,115
280,954
-
Conununity services
1,157,141
252,501
818,951
1,958,678
Planning and
development
5,752,239
754,938
-
1,244,458
Public works
9,101,582
2,815,703
835,673
15,388,287
Interest expense
15,265,051
_
-
-
Total govenunental activities
43,384,794
8,706,920
1,935,578
18,591,423
Business -type activities:
Golf course
1,877,291
1,091,836
-
-
Total
$ 45,262,085
9,798,756
1,935,578
18,591,423
General revenues:
Taxes:
Property taxes
Tax increment
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
Motor vehicle in lieu
Gain on sale of capital assets
Miscellaneous revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets at beginimig of year
Net assets at end of year
See accompanying notes to the basic financial statements.
18
Goveriunental
Activities
Net (Expense) Revenue and
Changes in Net Assets
Business -type
Activities
Totals
2005 2004
(3,150,243)
- (3,150,243)
(3,982,402)
(3,793,806)
- (3,793,806)
(6,131,980)
1,872,989
- 1,872,989
193,220
(3,752,843)
9,938,081
(15,265,051)
(14,150,873)
(3,752,843) (6,743,750)
9,938,081 8,072,732
(15,265,051) (9,658,779)
(14,150,873) (18,250,959)
(785,455) (785,455) -
(14,150,873) (785,455) _ (14,936,328) 18,250,959
2,579,245 -
24,443,112 -
6,773,566 -
4,831,338 -
1,185,087 -
1,392,795 -
4,336,050 -
2,453,642 -
3,717,470 -
2,397,474 -
(41,459,643) 41,459,643
12,650,136 41,459,643
2;579,245
2,198,141
24,443,112
24,450,337
6,773,566
5,240,037
4,831,338
4,261,767
1,185,087
895,810
1,392,795
867,058
4,336,050
1,738,505
2,453,642
1,608,151
3,717,470
-
2,397,474
1,489,612
54,109,779 42,749,418
(1,500,737) 40,674,188 39,173,451 24,498,459
338,644,794 - 338,644,794 314,146,335
$ 337,144,057 40,674,198 377,818,245 338,644,794
19
CITY OF LA QUINTA
Governmental Funds - Balance Sheet
June 30, 2005
Assets
Cash and investments
Cash with fiscal agent
Accounts receivable
Taxes receivable
Prepaid items
Interest receivable
Notes receivable (note 4)
Due from other funds (note 19)
Due from other governments
Advances to other funds (note 19)
Deposits
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued salaries and benefits
Deferred revenue
Deposits payable
Retentions payable
Due to other governments
Due to other funds (note 19)
Advances from other funds (note 19)
Total liabilities
Fund Balances:
Fund balances (deficits) (note 22):
Reserved for:
Debt service
Bond projects
Prepaid items
Notes receivable
Advances to other funds
Deposits
Unreserved, reported in (note 25):
General fund
Special revenue funds
Debt service funds
Capital projects funds
Total fund balances
Total liabilities and fund balances
Redevelopment
Agency -
General PA No. 1
$ 30,317,219
47,551
787,752
507,931
302,562
3,894,522
4,464,974
31,904,659
$ 72,227,170
$ 2,196, 815
437,219
2,924,223
2,737,034
4,912
8,300,203
17,912,730
100
81,147
338,499
18,332,476
3,395
13,727,340
13,730,735
Debt Service Funds
Redevelopment
Agency -
PA No. 2
10,328,387
57,230
171,204
10,556,821
855
17,795,380
17,796,235
Financing
Authority
5,048
62
90,000,000
90,005,110
1,750
90,000,000
90,001,750
4,601,741 -
507,931 - -
31,904,659 - - -
31,514,377 - - -
- (7,239,414) 3,360
63,926,967 4,601,741 (7,239,414) 3,360
$ 72,227,170 18,332,476 10,556,821 90,005,110
See accompanying notes to the basic financial statements.
20
- -
Capital Projects Funds
-
4,601,741
4,088,071
- 27,809,770
58,160,341
Redevelopment
85,970,111
Other
- -
_
Capital
Agency -
2004
Governmental
Totals
Improvement
PA No. 1
Low/Mod Bond
Funds
2005
2004
38,965,686
34,006,546
- -
-
1,110
1,110
3,797,838
-
-
31,398,993
93,760,215
86,851,627
-
27,809,770
58,160,341
5,096
85,975,369
95,474,813
-
-
-
143,649
191,200
515,984
-
-
-
-
787,752
353,361
-
-
-
-
507,931
292,816
-
19
55,935
155,101
651,994
404,038
-
-
-
12,858,098
102,858,098
102,741,527
-
-
-
3,894,522
2,783,283
104,877
-
-
179,573
5,259,127
6,507,120
-
5,938,879
-
1,122,148
38,965,686
34,007,241
-
-
-
1,110
1,110
246,858
3,902,715
33,748,668
58,216,276
45,863,768
332,853,004
330,178,668
1,598,072
33,872
-
109,296
3,944,055
5,364,260
-
-
-
-
437,219
376,210
14,034
-
-
10,740,225
103,678,482
104,664,043
131,878
_
-
46,499
2,915,411
2,125,238
2,158,731
-
-
-
21158,731
726,299
-
-
-
-
4,912
163,404
-
3,273,200
121,575
194,088
3,588,863
2,783,283
-
-
-
7,061,027
38,583,747
34,007,241
3,902,715
3,307,072
121,575
18,151,135
155,311,420
150,209,978
- -
-
-
4,601,741
4,088,071
- 27,809,770
58,160,341
-
85,970,111
86,929,041
- -
_
-
507,931
292,816
- -
2,117,873
2,117,873
2,123,425
- 5,938,879
-
1,122,148
38,965,686
34,006,546
- -
-
1,110
1,110
246,858
- -
-
-
31,514,377
25,494,479
- -
-
19,267,394
19,267,394
9,286,459
- -
-
-
(7,236,054)
(11,099,245)
- (3,307,053)
(65,640)
5,204,108
1,831,415
28,600,240
- 30,441,596
58,094,701
27,712,633
177,541,584
179,968,690
3,902,715 33,748,668
58,216,276
45,863,768
332,853,004
330,178,668
21
(This page intentionally left blank)
iia
CITY OF LA QUINTA
Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2005
Fund balances of governmental funds $ 177,541,584
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 resources in governmental fund activity.
Infrastructure 99,260,125
Other capital assets 347,785,970
Accumulated depreciation (64,714,848)
Long-term debt and compensated absences that have not been included
in the governmental fund activity:
Bonds payable (241,015,717)
Compensated absences (549,028)
Other long-term liabilities (9,153,715)
Accrued interest payable for the current portion of interest due on
bonds payable has not been reported in the governmental funds. (4,381,316)
Revenues that are measurable but not available. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting. 13,678,482
Internal service funds are used by management 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 18,692,520
Net assets of governmental activities $ 337,144,057
See accompanying notes to the basic financial statements.
23
CITY OF LA QUINTA
Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
Revenues:
Taxes
Licenses and permits
Charges for services
Developer fees
Intergovernmental
Investment income
Special assessments
Rental income
Loan repayments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Community services
Planning and development
Public works
Capital projects
Debt service:
Principal
Interest and fiscal charges
Payment to bond escrow
Payments under pass-through
obligations
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Issuance of tax allocation bonds
Issuance of revenue bonds
Bond premium and discount
Payment to bond escrow
Transfers in (note 21)
Transfers out (note 21)
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit) at beginning of year
Fund balances (deficit) at end of year
3,765,511 - - -
12,364,583 - -
1,104,509 - - -
862,890 365,810 180,374 5,231
4,794,685 - - -
-
3,121,114
Debt Service Funds
315,000
-
Redevelopment
Redevelopment
3,356,269
-
Agency -
Agency -
Financing
General
PA No. 1
PA No. 2
Authority
$ 16,762,028
27,093,693
14,036,962
-
3,226,167
-
-
3,402,602
-
4,142,039
2,990,049
7,552,035
-
-
-
3,238,808
255,628
174,272
58
-
-
-
681,220
513,030
-
-
3,481
34,694,670
27,349,321
14,211,234
684,759
3,765,511 - - -
12,364,583 - -
1,104,509 - - -
862,890 365,810 180,374 5,231
4,794,685 - - -
-
3,121,114
195,000
315,000
-
8,967,948
1,782,844
3,356,269
-
14,421,097
11,335,224
-
22,892,178
26,875,969
13,493,442
3,676,500
11,802,492
473,352
717,792
_(2,991,741)
306,711
2,478,347
4,142,039
2,990,049
(2,887,472)
(2,438,029)
(994,948)
-
(2,580,761}
40,318
3,147,091
2,990,049
9,221,731
513,670
3,864,883
(1,692)
54,705,236
4,088,071
(11,104,297)
5,052
$ 63,926,967
4,601,741
(7,239,414
3,360
See accompanying notes to the basic financial statements.
24
Capital Projects Funds
Redevelopment
Other
Capital
Agency -
2004
Governmental
Totals
Improvement
PA No. 1
Low/Mod Bond
Funds
2005
2004
-
-
-
10,282,664
68,175,347
58,301,082
-
3,226,167
3,096,145
-
3,402,602
2,619,578
-
-
-
6,091,156
6,091,156
5,718,073
921,527
-
-
1,769,314
10,242,876
11,858,627
-
767,036
1,191,332
588,157
6,215,291
3,735,984
-
-
-
825,292
825,292
816,045
-
-
-
520,243
1,201,463
1,118,744
2,381,602
2,381,602
612,820
-
-
-
12,392
528,903
746,719
921,527
767,036
1,191,332
22,470,820
102,290,699
88,623,817
_
-
-
205,410
3,970,921
4,099,376
-
12,364,583
9,672,708
_
_
_
-
1,104,509
1,025,397
-
558,792
-
3,746,276
5,719,373
7,480,421
_
-
-
1,412,084
6,206,769
4,536,589
39,559,080
-
-
453,307
40,012,387
43,331,919
162,546
-
-
-
3,793,660
3,610,538
85,908
-
-
162,608
14,355,577
12,455,325
-
_
-
-
1,591,107
-
_
_
-
25,756,321
21,448,147
39,807,534
558,792
-
5,979,685
113,284,100
109,251,527
(38,886,007)
208,244
1,191,332
16,491,135
(10,993,401)
(20,627,710)
_
_
_
-
26,400,000
90,000,000
(1,506,396)
-
_
_
_
-
(19,955,000)
38,886,007
442,928
-
2,000
49,248,081
154,613,662
-
(17,612,949)
(753,613)
(24,561,070)
(49,248,081)
(154,613,662)
-
-
-
8,566,295
8,566,295
-
38,886,007
(17,170,021)
(753,613)
(15,992,775)
8,566,295
94,938,604
(16,961,777)
437,719
498,360
(2,427,106)
74,310,894
-
47,403,373
57,656,982
27,214,273
179,968,690
105,657,796
-
30,441,596
58,094,701
27,712,633
177,541,584
179,968,690
25
CITY OF LA QUINTA
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2005
Net changes in fund balances - total governmental funds $ (2,427,106)
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
42,468,847
Capital assets donated to other funds
(41,459,643)
Depreciation
(1,823,057)
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets. 3,793,660
The statement of net assets includes accrued interest on long term debt. (957,550)
To record as an expense the net change in compensated absences in the
statement of activities. (17,475)
Revenues that are measurable but not available. Amounts are not recorded
as revenue under the modified accrual basis of accounting. (985,561)
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. (92,852)
Change in net assets of governmental activities
$(1,500,737)
See accompanying notes to the basic financial statements.
26
CITY OF LA QUINTA
Proprietary Funds
Statement of Net Assets
June 30, 2005
Assets
Current assets:
Cash and investments
Accounts receivable
Prepaid items
Interest receivable
Due from other governments
Noncurrent assets:
Deposits
Inventory
Capital assets, net
Total assets
Current liabilities:
Accounts payable
Accrued salaries and benefits
Deferred revenue
Deposits payable
Due to other funds (note 19)
Advances from other funds (note 19)
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Assets
Invested in capital assets,
Business Type
Governmental
Actvities
Activities -
Enterprise Fund
Internal
Golf Course
Service Funds
$ - 3,426,605
44,697 -
- 49,086
- 17,894
Totals
2005 2004
3,426,605 3,084,392
44,697 -
49,086 -
17,894 11,643
- 3,932
250,000
- 250,000 -
122,210
- 122,210 -
42,102,263
15,223,945 57,326,208 1,111,924
42,519,170
18,717,530 61,236,700 4,211,891
316,980
20,986 337,966 28,884
3,187
4,024 7,211 -
10,800
- 10,800 -
25,000
- 25,000 -
305,659
- 305,659 -
381,939
- 381,939 -
153,673
- 153,673 -
647,744
- 647,744 -
1,844,982
25,010 1,869,992 28,884
net of related debt 41,300,846 15,223,945 56,524,791 1,111,924
Unrestricted (626,658) 3,468,575 2,841,917 3,071,083
Total net assets $ 40,674,188 18,692,520 59,366,708 4,183,007
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, 2005
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other operating expenses
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Investment income
Gain (loss) on sale of capital assets
Total non-operating
revenues (expenses)
Business Type
Governmental
58,469
8,501
Actvities
Activities -
74,823
74,823
Enterprise Fund
Internal
Totals
(20,198)
Golf Course
Service Funds
2005
2004
$ 1,091,836
981,180
2,073,016
694,960
1,091,836
981,180
2,073,016
694,960
22,679
71,734
94,413
51,862
-
42,473
42,473
33,390
-
116,565
116,565
138,406
1,637,376
109,956
1,747,332
124,037
-
89,564
89,564
120,098
210,677
624,570
835,247
305,834
6,559
93,993
100,552
1,877,291
1,148,855
3,026,146
773,627
(785,455)
(167,675)
(953,130)
(78,667)
Income (loss) before transfers
and capital contributions (785,455)
Capital contributions 41,459,643
Changes in net assets 40,674,188
66,322
66,322
58,469
8,501
8,501
-
74,823
74,823
58,469
(92,852)
(878,307)
(20,198)
14,602,365
56,062,008
346,750
14,509,513 55,183,701 326,552
Net assets at beginning of year - 4,183,007 4,183,007 3,856,455
Net assets at end of year $ 40,674,188 18,692,520 59,366,708 4,183,007
See accompanying notes to the basic financial statements.
W1.
CITY OF LA QUINTA
Proprietary Funds
Statement of Cash Flows
Year ended June 30, 2005
Cash flows from operating activities:
Cash received other customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Net cash provided by (used for) operating activities
Cash flows from noncapital financing activities:
Cash received (paid) on loans to other funds
Net cash provided by (used for) non -capital financing activities
Cash flows from capital and related activities:
Insurance proceeds
Cash received from the sale of capital assets
Cash paid to acquire capital assets
Proceeds from capital leases
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 accounts receivable
(Increase) decrease in deposits receivable
(Increase) decrease in due from other governments
(Increase) decrease in prepaid items
(Increase) decrease in inventory
(Increase) decrease in other assets
Increase (decrease) in accounts payable
Increase (decrease) in accrued salaries and benefits
Increase (decrease) in deferred revenue
Increase (decrease) in deposits payable
Net cash provided by (used for) operating activities
Business Type
Governmental
61,035
46,826
Actvities
Activities -
61,035
46,826
Enterprise Fund
Internal
Totals
Golf Course
Service Funds
2005
2004
$ 1,082,939
981,180
2,064,119
706,028
(1,699,165)
(505,603)
(2,204,768)
(375,765)
(19,492)
(67,710)
87,202
51,862
(635,718)
407,867
- (227,851)
278,401
687,598
-
687,598
-
687,598
-
687,598
-
18,294 18,294 -
350 350 -
(853,297) (145,333) (998,630) (189,793)
801,417 - 801,417
(51,880) (126,689) (178,569) 189,79
-
61,035
61,035
46,826
61,035
61,035
46,826
-
342,213
342,213
135,434
3,084,392
3,084,392
2,948,958
$ -
3,426,605
3,426,605
3,084,392
$ (785,455)
(167,675)
(953,130)
(78,667)
210,677
624,570
835,247
305,834
(44,697)
-
(44,697)
-
(250,000)
-
(250,000)
-
3,932
3,932
11,068
(49,086)
(49,086)
-
(122,210)
-
(122,210)
-
-
(19,100)
(19,100)
47,995
316,980
15,226
332,206
(7,829)
3,187
-
3,187
10,800
-
10,800
25,000
-
25,000
$ (635,718)
407,867
(227,851)
278,401
Noncash capital, financing and investing activities:
Capital assets disposals $ - (65,496) (65,496) (511,491)
Capital assets contributed by other funds 41,459,643 14,602,365 56,062,008 346,750
See accompanying notes to the basic financial statements.
29
CITY OF LA QU NTA
Agency Funds
Statement of Fiduciary Assets and Liabilities
June 30, 2005
Assets
Cash and investments (note 2)
Taxes receivable
Interest receivable
Total assets
Liabilities
Due to bondholders
Total liabilities
2005
$ 1,221,946
25,829
6,166
2004
1,982,134
6,973
$ 1,253,941 1,989,107
$ 1,253,941 1,989,107
$ 1,253,941 1,989,107
See accompanying notes to the basic financial statements.
30
CITY OF LA QUINTA
Notes to the Basic Financial Statements
Year ended June 30, 2005
{11 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 Ouinta Redevelopment 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
SuntmM 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 Ag uthority
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:
i 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 SummM 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)
1 SummM of Significant Accounting Policies Continued
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) Summary 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)
ProDrietary 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) Major Funds Internal Service Funds and Fiduciary Fund T)W
The City's major governmental funds are as follows:
Gencral 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.
U41
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
1 SummM of SigpJficant 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.
Ca itp al 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 Capital 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.
The City's major proprietary funds are as follows:
Golf Course — To account for the activities of the SilverRock Golf Resort.
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.
Park Equipment and Facilities Fund — This fund is used to account for the
purchase and replacement of City owned park facility infrastructure. 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.
37
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued)
(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.
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.
(f) Coital Assets
Inventory is valued at cost using the first in/first out (FIFO) method.
(f) 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.
38
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
l } SLIMIM11'y of Sigiliflcant Accounting Policies, (Continued)
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.
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.
(i) Prepaid 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.
39
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
1 SummM of Significant Accounting Policies Continued
U) 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.
(2) Cash and Investments_
Cash and investments as of June 30, 2005 are classified in the accompanying financial
statements as follows:
Statement of net assets:
Cash and investments $ 97,186,820
Cash with fiscal agent 85,975,369
Statement of Fiduciary Assets and Liabilities:
Cash and investments 1,221,946
Total cash and investments 84,384,135
Cash and investments as of June 30, 2005 consist of the following:
Cash on hand $ 1,000
Deposits with financial institutions (2,934,840)
Investments 187,317,975
Total cash and investments
1 4 X84 135
Investments Authorized by the California Governmept Code and the Entity's Investment
Policy
The table below identifies the investment types that are authorized for the Entity by the
California Government Code and the Entity's investment policy. The table also identifies
certain provisions of the California Government Code (or the Entity's investment policy,
if more restrictive) that address interest rate risk, credit risk, and concentration of credit
risk. This table does not address investments of debt proceeds held by bond trustee that
are governed by the provisions of debt agreements of the Entity, rather than the general
provisions of the California Government Code or the Entity's investment policy.
40
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Investment of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
Entity's investment policy. The table below identifies the investment types that are
authorized for investments held by band trustee. The table also identifies certain
provisions of these debt agreements that address interest rate risk, credit risk, and
concentration of credit risk.
41
Authorized
*Maximum
*Maximum
Investment Types
By Investment
*Maximum
Percentage
Investment
Authorized by State Law
Policy
Maturity
Of Portfolio
In One Issuer
Local Agency Bonds
No
5 years
None
None
U.S. Treasury Obligations
Yes
5 years
None
None
U.S. Agency Securities
Yes
5 years
None
$10 million
Banker's Acceptances
No
180 days
40%
30%
Yes
10% or
Commercial Paper
270 days
25%
$3 million
Negotiable Certificates of Deposit
No
5 years
30%
None
Repurchase Agreements
No
1 year
None
None
20% of
Reverse Repurchase Agreements
No
92 days
base value
None
Medium -Term Notes
Yes
5 years
30%
$3 million
Mutual Funds
No
N/A
20%
10%
Money Market Mutual Funds
Yes
N/A
20%
10%
Mortgage Pass -Through Securities
No
5 years
20%
None
County Pooled Investment Funds
No
N/A
None
None
Local Agency Investment Fund
Yes
N/A
25%
None
(LAIF)
JPA Pools (other investment pools)
No
N/A
None
None
* Based on state law requirements or investment policy
requirements, whichever is more restrictive.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
Entity's investment policy. The table below identifies the investment types that are
authorized for investments held by band trustee. The table also identifies certain
provisions of these debt agreements that address interest rate risk, credit risk, and
concentration of credit risk.
41
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
2 Cash and Investments Continued
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to changes in market interest rates. One of the ways
that the Entity manages its exposure to interest rate risk is by purchasing a combination
of shorter term and longer term investments and by timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the Entity's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the Entity's investments by maturity:
Remaining Maturity in Months)
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Type
Maturity
Allowed
in One Issuer
U.S. Treasury Obligations
None
None
None
U.S. Agency Securities
None
None
None
Banker's Acceptances
360 days
None
None
Commercial Paper
270 days
None
None
Money Market Mutual Funds
N/A
None
None
Negotiable Certificates of Deposit
360 days
None
None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to changes in market interest rates. One of the ways
that the Entity manages its exposure to interest rate risk is by purchasing a combination
of shorter term and longer term investments and by timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the Entity's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the
following table that shows the distribution of the Entity's investments by maturity:
Remaining Maturity in Months)
42
3 Months
4 to 6
7 to 12
12 to 24
Investment Typ
Or Less
Months
Months
Months
U.S. Treasury notes
$ 32,947,558
5,001,854
17,979,929
9,965,775
-
Federal agency securities
28,531,600
2,456,870
6,525,641
14,626,399
4,922,690
State investment pool
39,863,448
39,863,448
-
-
-
Held by bond trustee:
Money market funds
3,556,258
3,556,258
-
-
-
U.S. Treasury bills
82,419,111
52,68007
29,738,544
-
r
Total
1187.317.975103.559.037
45 .244 074
24.592.174
4,9-
42
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
2 Cash and Investments Continued
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a rating
by a nationally recognized statistical rating organization. Presented below is the
minimum rating required by (where applicable) the California Government Code, the
Entity's investment policy, or debt agreements, and the actual rating as of year end for
each investment type.
Investment Tvne
U.S. Treasury notes
Federal agency securities
State investment pool
Held by bond trustee:
Money market funds
U.S. Treasury bills
Total
Minimum
Exempt
Legal
From
Rating
Disclosure
$ 32,947,558 N/A
32,947,558
28,531,600 N/A
-
39,863,448 N/A
-
3,556,258 A -
82,419,111 N/A 82,419,111
Concentration of Credit Risk
Rating as of Year End
Not
AAA Aa Rated
24,077,976
3,556,258
4,453,624
39,863,448
The investment policy of the Entity contains no limitations on the amount that can be
invested in any one issuer beyond that stipulated by the California Government Code,
except for U.S. Agency Securities (limited to a face value of $10 million) and
Commercial Paper and Medium -Term Notes (limited to a face value of $3 million).
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total Entity investments are as
follows:
Issuer
Federal Home Loan
Mortgage Corp
Investment
Type
Federal agency security
43
Carrying
Amount
$10,041,337
Face
Value
$9,956,870
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker-dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
another party. The California Government Code and the Entity's investment policy do
not contain legal or policy requirements that would limit the exposure to custodial credit
risk for deposits or investments, other than the following provision for deposits: The
California Government Code requires that a financial institution secure deposits made by
state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental
unit). The market value of the pledged securities in the collateral pool must equal at least
110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of the secured public deposits.
Investment in State Investment Pool
The Entity is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the Entity's investment in this pool is reported in the
accompanying financial statements at amounts based upon the Entity's pro -rata share of
the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized
cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by LAIF, which are recorded on an amortized cost basis.
44
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(3) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to I%
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.
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.
45
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(4) Notes Receivable
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.
In December 2000, the Redevelopment Agency entered into an
agreement with LINC 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.
Other notes receivable
Total notes receivable reported on the statement of net assets
Iri 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 2035.
Total notes receivable reported in the Governmental Funds —
Balance Sheet
46
Outstanding
Balance at
June 30, 20.05
$ 3,275,614
9,500,000
82,484
12,858,098
so 111 111
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, 2005 is as
follows:
Balance at
June 30, 2004
Buildings and improvements $ 24,677,430
Equipment and furniture 1,583,727
Vehicles 1,224,147
Infrastructure 96,678,847
Balance at
Additions Deletions June 30, 2005
15,357,963 (11,609,027) 28,426,366
114,965 (27,995) 1,670,697
73,399 (205,634) 1,091,912
2,581278 - 99,260,125
Total cost of depreciable
assets 124,164,151 18,127,605 (11,842,656) 130,449,100
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
6,057,086
2,007,875 (1,169,786)
6,895,175
942,823
184,717 (14,617)
1,112,923
758,280
77,673 (199,226)
636,727
53,438,823
2,631200
56,070,023_
61,197,012 4,901,465 (1,383,629 64,714,848
62,967,139 13,226,140 (10,459,027) 65,734,252
73,505,659 9,491,384 (25,269,610) 57,727,433
234,280,023 12,019,371 - 246,299,394
27,932,823 39,222,431(39,361,141) 27,794,113
': •: r•� r 1:' '. r r
47
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(5) Capital Assets, (Continued)
Capital asset activity for business -type activities for the year ended June 30, 2005 is as
follows:
Balance at Balance at
Ritic 30, 2004 Additions Deletions June 30, 2005
Buildings and improvements $ - 6,236,075 - 6,236,075
Equipment and furniture - 1,058,737 - 1,058,737
Vehicles - 20,348 -- 20,348
Software - 20,255 - 20,255
Total cost of depreciable
assets
Less accumulated
depreciation:
Buildings and
improvements
Equipment and furniture
Vehicles
Infrastructure
Total accumulated
depreciation
Net depreciable assets
Capital assets not
depreciated:
Land
Capital assets, net
7,335,415 - 7,335,415
- 110,409 -
110,409
- 96,208 -
96,208
- 2,035 -
2,035
- 2,025
- 2,025
210,677 - 210,677
- 7,124,738 - 7,124,738
48
34,977,525
34,977,525
2 3
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:
Governmental Activities
General government $ 110,156
Public safety 483,689
Community services 1,343,072
Planning and development 27,672
Public works 2.936.876
Total Governmental Activities $4-904 _5
Business Type Activities
Golf Course 21
6 Changes in Long -Tenn Liabilities — Governmental Activities
Changes in governmental long-term liabilities for the year ended June 30, 2005 were as
follows:
City:
Compensated absences payable
Due to the Coachella Valley Association
of Governments
Developer Agreement Payable
Redevelopment Agency:
RDA Project Area No. 1:
Tax allocation bonds
Pass-through agreements payable:
Coachella Valley Unified School District
RDA Project Area No. 2:
Tax allocation bonds
Due to County of Riverside
Financing Authority:
Revenue bonds
Total
Amounts
Balance at Balance at due within
June 30 2004 Additions Deletions June 30.2005 on, a year
$ 531,553 441,868 (424,393)
428,311 - (50,000)
1,010,688 (112,547)
549,028 494,125
378,311 50,000
898,141 122,111
142,507,628
- (2,243,969)
140,263,659
2,348,969
6,653,377
- (726,114)
5,927,263
740,636
6,325,000
(95,000)
6,230,000
100,000
2,050,000
(100,000)
1,950,000
100,000
94,814343 - 2( 92„285) 94,522,058 6994,209
$254 320 900 ! .044 k.3081 250.718.460 •95�0.0�
49
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, 2005, the balance is $378,311.
The minimum annual requirements to amortize payable to Coachella Valley Association
of Governments as of June 30, 2004 are as follows:
June 30 Pril7Cipal
2006
$ 50,000
2007
50,000
2008
50,000
2009
50,000
2010
50,000
2011
50,000
2012
50,000
2013
28,311
$378,311
(8) Tax Allocation Bonds
As of June 30, 2005, 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, 2005 is $15,655,000.
50
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, 2005 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, 2005 is $6,230,000.
51
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued�i
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, 2005 is
$46,318,906 ($48,000,000 net of unamortized discount and issuance costs of
$1,681,094).
Tax Allocation Bonds Series 2002 — Proiect 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, 2005 is
$37,410,914 ($38,860,000 net of unamortized discount and issuance costs of
$1,449,086).
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 and
issuance costs of $629,191.
52
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
Tax Allocation Bonds. Series 2003 Froect Area No. 1. (Continued
Interest is payable semi-annually on March 1 and September I 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, 2005 is $25,118,839 ($26,010,000 net of unamortized discount and issuance
costs of $891,161).
53
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (Continued)
The minimum annual requirement (including sinking fund requirements) to amortize tax
allocation bonds as of June 30, 2005 are as follows:
54
Project Area No. 1
Project Area No. 2
Tax Allocation Bonds
Tax Allocation
Bonds
June 30:
Principal
Interest
Principal
_ Interest
2006
$ 2,500,000
7,805,905
100,000
319,168
2007
2,640,000
7,658,900
105,000
314,785
2008
2,795,000
7,500,554
110,000
310,135
2009
2,960,000
7,330,189
115,000
305,184
2010
3,135,000
7,144,063
120,000
299,550
2011
3,330,000
6,941,435
125,000
293,272
2012
3,540,000
6,724,311
130,000
286,737
2013
3,765,000
6,491,872
140,000
279,819
2014
3,515,000
6,281,899
145,000
272,516
2015
3,690,000
6,095,257
150,000
264,956
2016
3,885,000
5,896,531
160,000
257,013
2017
4,090,000
5,687,234
170,000
248,556
2018
4,305,000
5,466,835
175,000
239,716
2019
4,530,000
5,234,798
185,000
230,491
2020
4,770,000
4,990,457
195,000
220,631
2021
5,020,000
4,733,125
205,000
210,131
2022
5,285,000
4,462,141
215,000
199,106
2023
5,565,000
4,175,504
230,000
187,425
2024
5,860,000
3,871,622
240,000
175,087
2025
6,170,000
3,549,682
255,000
162,094
2026
6,505,000
3,209,208
265,000
148,444
2027
6,850,000
2,850,313
280,000
134,138
2028
7,220,000
2,472,033
295,000
119,044
2029
7,610,000
2,073,117
310,000
103,163
2030
8,015,000
1,653,186
325,000
86,494
2031
8,445,000
1,211,175
345,000
68,906
2032
8,905,000
745,023
360,000
50,400
2033
9,385,000
252,852
380,000
30,975
2034
-
-
400,000
10,500
$ 144,285,000
132,509,221
6,230,000
5,828,436
54
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, 2005 is $6,575,000.
2004 Series A Local Aizencv 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 with issuance costs of $2,600,229 and a premium of $476,496.
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
September 1, 2005. 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, 2005 is $87,947,058 ($90,000,000 net of unamortized discount and issuance
costs of $2,052,942).
55
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
() Revenue Bands, (Continues
The minimum annual requirements (including sinking fund requirements) to amortize
revenue bonds as of June 30, 2005 are as follows:
111 : . • ' 1 111 111
56
1996 Lease Revenue
2004 Series A Revenue Bonds
June 30
Principal
Interest
Principal
Interest
2006
$ 330,000
350,575
735,000
2,990,049
2007
345,000
333,865
1,520,000
4,436,981
2008
360,000
315,880
1,570,000
4,403,156
2009
380,000
296,450
1,615,000
4,356,806
2010
400,000
275,280
1,670,000
4,304,994
2011
420,000
252,525
1,740,000
4,243,332
2012
445,000
228,521
1,805,000
4,175,132
2013
470,000
203,130
1,890,000
4,099,719
2014
495,000
176,351
1,975,000
4,016,581
2015
525,000
148,046
2,075,000
3,924,681
2016
555,000
116,076
2,175,000
3,823,431
2017
585,000
86,441
2,290,000
3,714,462
2018
615,000
53,141
2,410,000
3,597,256
2019
650,000
18,038
2,535,000
3,473,881
2020
-
-
2,670,000
3,344,075
2021
-
-
2,810,000
3,207,444
2022
-
-
2,960,000
3,063,594
2023
-
-
3,115,000
2,912,132
2024
-
-
3,275,000
2,752,663
2025
-
-
3,450,000
2,584,925
2026
-
-
3,630,000
2,408,394
2027
-
-
3,810,000
2,227,082
2028
-
-
4,000,000
2,041,082
2029
-
-
4,200,000
1,845,832
2030
-
-
4,410,000
1,640,832
2031
-
-
4,635,000
1,425,582
2032
-
-
4,870,000
1,196,560
2033
-
-
5,120,000
952,994
2034
-
-
5,380,000
697,000
2035
-
-
5,660,000
572,969
111 : . • ' 1 111 111
56
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(10) 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, 2005 is $1,950,000.
The minimum annual requirements to amortize amounts due to the County of Riverside
as of June 30, 2005 are as follows:
June 30 Principal
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
G�7
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(111 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 $421,168 to $834,076, for a total amount of $15,284,042. Tax
increment payments outstanding at June 30, 2005 totaled $5,927,265. 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, 2005 are as follows:
June 30 Principal
2006
$ 740,636
2007
755,449
2008
770,558
2009
785,968
2010
801,688
2011
817,722
2012
834,076
2013
421,166
X5,927163
(112) 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 $76,204 for that year for a maximum of ten years, based
58
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
f12) Developer Agreement Payable, Continued)
upon a $500,000 note at an interest rate of 8.5%. For the year ended June 30, 2005, 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, 2005 is $898,141.
The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2005 are as follows:
June 30
Principal
Interest
Total
2006
$ 122,111
76,343
198,454
2007
132,491
65,963
198,454
2008
143,753
54,701
198,454
2009
155,972
42,482
198,454
2010
169,230
29,224
198,454
2011
174,584
23,870
198,454
98,141 292,583 L120-724
(,13) Changes in Long -Term Liabilities -Business-type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2005 were as
follows:
Amounts
Balance at Balance at due within
June 30, 2004 Additions Deletions June 30, 2005 one year
Golf Course:
Capital leases payable_
The City of La Quinta entered into several capital lease agreements for the operation of
SilverRock Resort. The City financed the acquisition of a point-of-sale system,
maintenance equipment and golf carts. These lease agreements qualify as capital leases
for accounting purposes and, therefore, have been recorded at the present value of their
future minimum lease payments as of the inception date. The assets acquired during the
fiscal year under these lease agreements are recorded at their acquisition cost of
$880,286.
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
13 Changes in Long -Tenn Liabilities — Business -We Activities Continued
The following schedule summarizes the debt to maturity payments for capital leases:
Year ending
June 30:
Business -type Activities
Principal Interest
2006
$153,673
33,365
2007
171,351
26,197
2008
179,147
18,401
2009
187,637
9,912
2010
109,609
1,573
Total
$4 7_.
(1 4) Debt Without Groverrunental 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, 2005:
Proceeds
Maturity Date
Assessment District No. 92-1 1,880,891
9/2/08
Assessment District No. 97-1 705,262
9/2/18
Assessment District No. 2001-1 2,285,000
9/2/15
60
Amount Outstanding
Interest Rate at dune 30 2005
5.00%-5.40% 480,000
4.10%-5.20% 550,000
5.00%-6.60% 1,690,000
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(15) Defined Benefit Pension Plan
Placa 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,
2004 to June 30, 2005 has been determined by an actuarial valuation of the plan as of
June 30, 2002. 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, 2005, this contribution rate would be
multiplied by the payroll of covered employees that was actually paid during the period
July 1, 2004 to June 30, 2005.
61
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(15) 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, 2002
Entry Age Actuarial Cost Method
Level Percent of Payroll
22 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, 2003.
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 10.412% of annual covered payroll. The contribution
requirements of plan members and the City are established and may be amended by
PERS.
62
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(15) Defined Benefit Pension Plan,(Continued)
Annual Pension Cost
For 2005, the City's annual pension cost (employer contribution) in the amount of
$336,348 was equal to the City's required and actual contributions. The required
contribution was determined as part of the June 30, 2002, actuarial valuation using the
entry age normal actuarial cost method. The actuarial assumptions included (a) 8.25%
investment rate of return (net of administrative expenses), (b) projected annual salary
increases that vary by duration of service, and (c) 2% per year cost -of -living adjustments.
Both (a) and (b) included an inflation component of 4.5%. The actuarial value of PERS
assets was determined using techniques that smooth the effects of short-term volatility in
the market value of investments over a four-year period (smoothed market value). Any
unfunded actuarial accrued liability is amortized as a level percentage of projected
payroll on a closed basis. PERS combines the prior service unfunded liability and the
current service unfunded liability into a single initial unfunded liability. The single
funding horizon for the unfunded liability is June 30, 2011.
Miscellaneous Employees
Three -Year Trend Information
Annual Pension Percentage of
Fiscal Year Cost (APC) APC Contributed
6/30/03 0 100%
6/30/04 0 100%
6/30/05 336,348 100%
Required Supplementary Information ($ amount in thousands)
Entry Age
Normal Actuarial Unfunded
Accrued Value Liability/
Valuation Lute LiabiIi1y of Assets (Excess Assets) Funded Status
Net Pension
Obligation
1
1
1
Annual UAAL
Covered As a % of
Payroll Pay' oll
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%)
06/30/03 10,343,433 9,225,182 1,118,251 89.2% 4,176,046 26.8%
Information for the June 30, 2004 valuation date was not available for inclusion in the
financial statements.
63
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
16 Claims Payable/Self Insurance
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. Members retain the first $50,000 of each claim. Claims are pooled separately
between public safety and non-public safety. Loss development reserves are allocated by
pool and by loss layer ($04100,000 allocated by retained amount and $100,000 to
$2,000,000 by payroll). Losses from $50,000 to $100,000 and the loss development
reserve associated with losses up to $100,000 are pooled based on the member's share of
losses under $50,000. Losses from $100,000 and $2,000,000 and the loss development
reserves associated with losses from $100,000 to $2,000,000 are pooled based on payroll.
Costs from $2,000,000 and $50,000,000 are transferred to an excess insurance policy.
Costs in excess of $50,000,000 are pooled among the Members based on payroll.
Administrative expenses are paid from the Authority's investment earnings.
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 in the prior
year.
64
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(17) Contin encies
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.
(18) Educational Revenue Augmentation Fund (ERAF) Payment
During fiscal year ended June 30, 2005, Chapter 1127 of the 2002 Statutes of the State of
California require redevelopment agencies to shift $250,000,000 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 $2,780,728 of the $250,000,000, which was forwarded to the Riverside County
Auditor in accordance with the statute.
(19) Interfund Receivables and Payables
Current interfund receivables and payables balances at June 30, 2005 are as follows:
Due from other funds Due to other funds Amount
General Fund Capital Projects Redevelopment
Agency PA No. 1 fund $3,273,200 (A)
2004 Low/Mod Bond fund 121,575 (A)
Other governmental funds 194,088 (B)
Golf Course Fund _ 305,659 (B)
Total 3 8 22
(A) Short term borrowing to cover June 2005 construction project expenditures.
(B) Short term borrowing to cover temporary cash shortfalls.
65
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
19 Interfund Receivables and Payables, Continued
Noncurrent interfund receivable and payable balances at June 30, 2005 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
Golf Course
Subtotal
RDA Capital Projects — PA No. 1 Other governmental funds
Other governmental funds Other governmental funds
Total
Amount
$13,727,340 (C)
17,795,380 (D)
381,939 (E)
31,904,659
5,938,879 (F)
1,122,148 (G)
S14 5&U
(C) As of June 30, 2005, the amount due to the General Fund From RDA Debt
Service — PA No. 1 was $13,727,340. This consists of an outstanding advance of
$6,977,481 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, 2005, the outstanding
advance amount is $6,749,859. The advance accrues interest at 7% per annum
and is to be repaid by November 29, 2033.
(D) As of June 30, 2005, the amount due to the General Fund From RDA Debt
Service— PA No. 2 was $17,795,380. This consists of an outstanding advance of
$11,589,380 loaned to the Redevelopment Agency with no required repayment
date and accrues interest at 10% per annum.
An outstanding advance of $6,206,000 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 August and September 2004, the General Fund advanced to the Golf Course
fund $381,679. The advance accrues interest at 7% per annum and is to be repaid
by the golf course out of future profits.
66
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(19) hiterfund Receivables and Payables, (Continued)
(F) 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, an 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.
In April 2004, another advance of $2,498,530 was made to provide funding for
the construction of the public library. Annual payments will be determined by
City Council. The remaining balance of these advances at June 30, 2005 is
$5,938,879.
(G) 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, 2005, the remaining balance of the advances at June 30,
2004 is $1,122,148.
(20) Construction Commitments
The following material construction commitments existed at June 30, 2005;
Expenditures as of Remaining
Project Name June 30, 2005 Commitments
Silver Rock Resort $24,099,520 18,269,251
Phase 2 — Jefferson Street Improvements (Hwy. 111) 628,523 6,499,572
City Hall Expansion 135,607 3,803,117
Eisenhower Dr. Bridge 715,974 3,035,328
Highway 111 Adams to Jefferson 59,602 2,655,383
67
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(21) Interfund Transfers
Interfund transfers were as follows for the year ended June 30, 2005:
Transfer In
Transfer Out
Amount
General Fund
Other governmental funds
$ 306,711
RDA Debt Service — PA No. 1 Fund
Other governmental funds
2,478,347 (A)
RDA Debt Service — PA No. 2 Fund
Other governmental funds
4,142,039 (B)
Financing Authority Debt Service Fund
RDA Debt Service — PA No. 1 Fund
1,995,101 (F)
Financing Authority Debt Service Fund
RDA Debt Service — PA No. 2 Fund
994.948
Subtotal Financing Authority Debt Service
Fund
2,990,049
Capital Improvement Fund
General Fund
2,885,472 (C)
Capital Improvement Fund
2004 Low/Moderate Bond Fund
753,613
Capital Improvement Fund
RDA Capital Projects — PA No. 1 Fund
17,612,949 (D)
Capital Improvement Fund
Other governmental funds
17 633,9733,973 (E)
Subtotal Capital Improvement Fund
38,886,007
RDA Capital Projects — PA No. 1 Fund
RDA Debt Service — PA No. 1 Fund
442,928
Other governmental fund
General Fund
2,000
Total
68
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(21) Interfund Transfers, (Continued)
The following describes the major transfers in and transfers out included in the financial
statements:
Transfers to Major Funds
(A) $1,995,101 was transferred from the Low/Moderate Housing Project Area No. 1
Fund to the RDA Debt Service Project Area No. 1 Fund to pay a portion of the
2004 Series A Local Agency Revenue Bond debt service.
(B) $3,147,091 was transferred from the Low/Moderate Housing Project Area No. 2
Fund to the RDA Debt Service Project Area No. 2 Fund to as result of the sale of
housing land to a developer.
(C) $2,663,640 was transferred to the Capital Improvement Fund from the General
Fund to fund the construction of the La Quinta Municipal Library. Other transfers
totaled $221,832 at 6/30/05.
(D) $16,313,666 was transferred to the Capital Improvement Fund from the RDA
Capital Projects — PA No. 1 Fund to fund the construction of the SilverRock
resort capital project. Other transfers totaled $1,299,283 at 6/30/05.
(E) $5,783,409 and $1,512,445 was transferred to the Capital Improvement Fund
from the RDA Capital Projects — PA No. 1 Taxable Fund and the RDA Capital
Projects — PA No. 2 Fund, respectively, to fund the construction of the SilverRock
resort capital project. $3,746,450 and $2,663,640 was transferred to the Capital
Improvement Fund from the Library Developer Impact Fund and the General
Fund, respectively, to fund the construction of the La Quinta Municipal Library.
(F) $1,995,101 was transferred from the RDA Debt Service Project Area No. 1 Fund
to the Financing Authority Debt Service Fund to pay a portion of the 2004 Series
A Local Agency Revenue Bond debt service.
69
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(22) Fund Deficits
The following fund had a deficit balance at June 30, 2005:
Special Revenue Fund:
Federal Assistance
Debt Service Fund:
Redevelopment Agency — PA No. 2
Capital Projects Fund:
Parks and Recreation
Library Development
Fire Facility
Redevelopment Agency — PA No. 2
$ 177,312
7,239,414
3,269,023
2,498,530
1,122,185
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.
Library Development
The deficit was created by transfers to the Capital Improvements Capital Projects Fund
for the construction of the library. The cost for the current year exceeded the developer
fees collected in this fund.
FireFacility
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.
70
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
23 Expenditures in Excess of Apop2priations
Expenditures for the year ended June 30, 2005 exceeded the appropriations of the
following funds/departments:
24 Conduit Debt Financia
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, 2005 are
$3,000,000.
The bond is secured solely by the credit facility, Fannie Mae, and by a pledge of the trust
estate comprised of bond proceeds and property. The bond is not an obligation of the
issuer, but payable solely from the security.
71
BUdget
Actual
Variance
General Fund:
City Manager
$445,723
620,669
(174,946)
Fiscal Services
413,168
456,935
(43,767)
Public Safety Building
1,313,294
1,321,862
(8,568)
Public Works Administration
82,694
169,924
(87,230)
Public Works Development and Traffic
1,142,966
1,288,794
(145,828)
Public Works Maintenance L and L
934,413
939,373
(4,960)
Capital Projects Administration
466,462
653,184
(186,722)
Capital Projects Funds:
Parks and Recreation
-
81,740
(81,740)
Civic Center
204,366
205,410
(1,044)
Library
-
8,482
(8,482)
Fire Facility
-
24,310
(24,310)
Redevelopment Agency Project Area No. 1
503,706
558,792
(55,086)
24 Conduit Debt Financia
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, 2005 are
$3,000,000.
The bond is secured solely by the credit facility, Fannie Mae, and by a pledge of the trust
estate comprised of bond proceeds and property. The bond is not an obligation of the
issuer, but payable solely from the security.
71
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(25) Unreserved Fund Balances
Unreserved fund balances at June 30, 2005 consisted of the following:
Capital
Debt 3ervicc Projects
General RDA Financing
Fund PA No. 2 Authority
Designated for:
Emergency reserve $15,067,577
Cash flows
2,608,786
Library
11,981
Capital improvements
589,875
Educational purposes
1,000,000
Economic development
467,072
Encumbrances/carryover
appropriations
1,069,667
Operations/projects/
transfers
10,699,419
Other
RDA 2004 Low/ Governmental
PA No. 1 Mod Bond Funds Total
- - - - 15,067,577
2,608,786
11,981
589,875
- - - - 1,000,000
467,072
1,069,667
- 10,699,419
Undesignated f7.239,414) 3,360 (3,307,053) (65,640) 24,333,650 13,724,903
Total unreserved fund
balances (deficit) $31.514.377 (7.239.4141 3 -MO (3.307.0531 (65.640) 24 4 2 2
26 Golf Course Management Agreement
The City entered into an agreement with Landmark Golf Management LLC (operator) to
manage the golf operations at the city -owned SilverRock Golf Course. The Agreement,
entered into on April 6, 2004, sets forth a five year term commencing upon the
completion of the golf course. On January 14, 2005, the golf course was deemed to be
complete and management was turned over to the operator. The contract provides that
the operator will manage the day to day operations, hire employees, provide golf pro shop
and food services, manage all marketing and promotional activities, prepare the annual
budget report for Council consideration, and manage accounting and payroll functions.
In addition to the annual payment for management services, the City has advanced the
operator $250,000 to pay for golf course expenses. Twice a month the operator submits a
request for reimbursement to the City to replenish the City's advance. In addition, the
agreement sets forth the establishment of a capital reserve fund of 2% of green fees. For
the fiscal year ending June 30, 2005 the Golf Course had an operating loss of $785,455.
72
REQUIRED SUPPLEMENTARY INFORMATION
73
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, Fire Services, Public Works, Building and Safety,
and Community Services.
74
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 elle
amount of $69,505,616 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.
(2) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2005 exceeded the appropriations of the
following funds/departments:
75
Budget
Actual
Variance
General Fund:
City Manager
$445,723
620,669
(174,946)
Fiscal Services
413,168
456,935
(43,767)
Public Safety Building
1,313,294
1,321,862
(8,568)
Public Works Administration
82,694
169,924
(87,230)
Public Works Development and Traffic
1,142,966
1,288,794
(145,828)
Public Works Maintenance L and L
934,413
939,373
(4,960)
Capital Projects Administration
466,462
653,184
(186,722)
75
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 conununity services
CITY OF LA QUINTA
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
Budget
Original Final
Variance with
Final Budget
Actual Positive (Negative)
$ 12,751,000
12,751,000
16,762,028
966,400
971,400
3,226,167
1,478,800
1,474,000
3,402,602
6,344,340
6,396,441
7,552,035
2,265,300
1,859,300
3,238,808
16,500
333,111
513,030
23,822,340 23,785,252 34,694,670
761,385
753,885
537,891
623,222
445,723
620,669
743,550
840,600
795,395
660,679
672,669
382,352
531,024
413,168
456,936
543,607
659,448
556,435
434,611
434,611
415,833
4,298,078 4,220,104 3,765,511
6,636,704 6,813,954 6,136,323
290,317
194,019
169,151
658,084
658,084
497,708
293,479
302,229
208,348
794,000
1,313,294
1,321,862
45,193
45,193
28,815
3,782,040
3,881,825
3,542,046
485,258
485,258
460,330
12,985,075 13,693,856 12,364,583
359,644 376,294 307,579
4,011,028
2,254,767
1,928,602
1,155,594
1,379,508
179,919
10,909,418
215,994
(174,946)
45,205
290,317
(43,768)
103,013
18,778
454,593
677,631
24,868
160,376
93,881
(8,568)
16,378
339,779
24,928
1,329,273
68,715
Prior
Year
Actual
13,184,050
3,096,145
2,619,578
4,895,986
2,335,154
109,388
26,240,301
640,438
562,001
720,748
584,127
440,735
613,912
330,259
3,892,220
5,285,180
203,616
520,714
188,718
1,131,823
26,316
1,831,358
484,455
9,672,180
312,606
692,003
778,010
648,149
129,861
577,506
144,203
185,003
148,781
36,222
135,285
1,195,850
1,339,307
1,104,509
234,798
1,025,397
76
Planning and development:
Coimnunity development
administration
Current planning
Total planning
and development
Public works:
Public works administration
Development and traffic
Maintenance/operations - St.
Maintenance/operations - L & L
Maintenance/operations - Park
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)
CITY OF LA QUINTA
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
(Continued)
Budget
Original Final Actual
(Continued)
Variance with
Prior
Final Budget
Year
Positive (Negative)
Actual
465,286
465,286
352,158
113,128
350,514
507,424
649,585
510,732
138,853
399,930
306,711
(216,041)
972,710
1,114,871
862,890
251,981
750,444
959,002
194,230
82,694
169,924
(87,230)
91,738
851,645
1,142,966
1,288,794
(145,828)
1,046,022
591,269
1,566,269
888,104
678,165
501,650
468,662
934,413
939,373
(4,960)
898,833
837,090
914,140
855,306
58,834
-
520,565
466,462
653,184
(186,722)
565,551
3,463,461 5,106,944 4,794,685
312,259 3,103,794
22,915,174 25.475,082 22,892,178 2,582,904 18,444,035
907,166
(1,689,830)
11,802,492
13,492,322
7,796,266
Fluid balance at beginning of year
54,705,236
54,705,236
30,000
522,752
306,711
(216,041)
183,289
(200,454)
(3,989,967)
(2,887,472)
1,102,495
959,002
(170,454
(3,467,215
(2,580,761)
886,454
(775,713)
Net change in fluid balance
736,712
(5,157,045)
9,221,731
14,378,776 7,020,553
Fluid balance at beginning of year
54,705,236
54,705,236
54,705,236
- 47,684,683
Fund balance at end of year
$ 55,441,948
49,548,191
63,926,967
14,378,776 54,705,236
77
(This page intentionally left blank)
78
SUPPLEMENTARY SCHEDULES
79
CITY OF LA QUINTA
Non -Major Governmental Funds
Combining Balance Sheet
June 30, 2005
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other finds
Advances from other finds
Total liabilities
Fund balances:
Reserved for:
Notes receivable
Advances to other fiuids
Deposits
Unreserved:
Designated for
capital projects
Undesignated
Total fund balances
Total liabilities and
fiind balances
$ 101,126
Special
Capital
62,940
10,740,225
-
Revenue
Projects
Totals
27,835
46,499
Funds
Funds
2005
2004
Assets
-
7,061,027
7,061,027
5,336,158
Cash and investments
$ 19,227,428
12,171,565
31,398,993
23,143,081
Cash with fiscal agent
-
5,096
5,096
8,545,446
Accounts receivable
82,749
60,900
143,649
146,746
Interest receivable
91,485
63,616
155,101
82,045
Notes receivable
12,858,098
-
12,858,098
12,741,527
Due from other govenmients
179,573
-
179,573
141,715
Advances to other finds
-
1,122,148
1,122,148
1,260,695
Deposits
1,110
1,110
-
Total assets
$ 32,440,443
13,423,325
45,863,768
46,061,255
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other finds
Advances from other finds
Total liabilities
Fund balances:
Reserved for:
Notes receivable
Advances to other fiuids
Deposits
Unreserved:
Designated for
capital projects
Undesignated
Total fund balances
Total liabilities and
fiind balances
$ 101,126
8,170
109,296
62,940
10,740,225
-
10,740,225
10,618,102
18,664
27,835
46,499
46,499
194,051
37
194,088
2,783,283
-
7,061,027
7,061,027
5,336,158
11,054,066 7,097,069 18,151,135 18,846,982
2,117,873
1,110
1,122,148
2,117,873
1,122,148
1,110
2,123,425
- 13,215,994
13,215,994
20,926,930
191267,394 8,011,886)
11,255,508
4,163,918
21,386,377 6,326,256
27,712,633
27,214,273
$ 32,440,443 13,423,325 45,863,768 46,061,255
80
CITY OF LA QUINTA
Non -Major Governmental Fluids
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
Special
Capital
Revenue
Projects
Totals
Funds
Funds
2005
2004
Revenues:
Taxes
$ 10,282,664
-
10,282,664
9,023,407
Developer fees
1,921,978
4,169,178
6,091,156
5,718,073
Intergovernmental
1,578,451
190,863
1,769,314
1,031,259
Investment income
270,211
317,946
588,157
484,780
Special assessments
825,292
-
825,292
816,045
Rental income
520,243
-
520,243
431,178
Loan repayments
2,381,602
-
2,381,602
612,820
Miscellaneous
12,392
-
12,392
474.645
Total revenues
17,792,833
4,677,987
22,470,820
18,592,207
Expenditures:
Current:
General govennnent
-
205,410
205,410
207,156
Public safety
-
-
-
528
Planning and development
3,553,188
193,088
3,746,276
4,345,461
Public works
1,412,084
-
1,412,084
1,432,795
Capital projects
60,429
392,878
453,307
124,821
Debt service:
Principal
-
-
-
113,662
Interest and fiscal charges
-
162,608
162,608
3,025,628
Total expenditures
5,025,701
953,984
5,979,685
9,250,051
Excess (deficiency) of
revenues over (under)
expenditures
12,767,132
3,724,003
16,491,135
9,342,156
Other financing sources (uses):
Issuance of tax allocation bonds
-
-
-
26,400,000
Issuance of revenue bonds
-
-
-
90,000,000
Transfers in
2,000
-
2,000
5,802,000
Transfers out
(11,358,934)
(13,202,136)
(24,561,070)
(125,121,381)
Proceeds from sale of capital assets
8,566,295
-
8,566,295
-
Total other financing
sources (uses)
2,790,639
(13,202,136)
(15,992,775)
(2,919,381)
Net change in fund balances
9,976,493
(9,478,133)
498,360
6,422,775
Fund balances at
beginning of year
11,409,884
15,804,389
27,214,273
20.791,498
Fetid balances at end of year
$ 21,386,377
6,326,256
27,712,633
27,214,273
81
(This page intentionally left blank)
82
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.
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.
Indian Ganging Fund - To account for contributions for public safety activities to reduce crime
and increase public safety.
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.
Riverside County Transportation Commission (RCTC) Fund - To account for grant funds related
to transportation projects.
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.
Urban Forestry Fund - To account for grant revenues received for landscape improvements from
the State of California.
South Coast Air Quality Fund - To account for contributions from the South Coast Air Quality
Management District. Use is limited to reduction and control of airborne pollutants.
Congestion Management Air Quality (CMAQ) Fund - To account for grant funds related to
improving air quality.
Redevelopment Agency, Low and Moderate Bond Fund 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,
83
CITY OF LA QUINTA
Non -Major Special Revenue Funds
Combining Balance Sheet
.Tune 30, 2005
84
Lighting
State
Federal
Indian
and
Gas Tax
Assistance
SLEBG
Gaming
Landscape RCTC
Quin3by
Assets
Cash and investments
$ 220,344
584
142,094
- -
1,984,780
Accounts receivable
-
-
-
-
-
Interest receivable
1,129
-
4
846
= =
9,121
Notes receivable
-
_
-
-
- -
`
Due from other
govennnents
-
16,739
-
=
35,408
-
Deposits
-
-
'
-
-
-
Total assets
$ 221,473
16,739
588
142,940
35,408 -
1,993,901
1abilities and Fund Balancer
Liabilities:
Accounts payable
Deferred revenue
-
Deposits payable
-
Due to other funds
-
194,051
-
-
- -
-
Total liabilities
=
194,051
-
-
- -
-
Fund balances:
Reserved for:
Notes receivable
-
-
Deposits
-
--
Unreserved
221,473
177,312
588
142,940
35,408 -
1,993,901
Total find balances
221,473
(177,312)
588
142,940
35,408 -
1,993,901
Total liabilities and
fund balances
$ 221,473
16,739
588
142,940
35,408 -
1,993,901
84
- 12,500 - - - 11,120
77,506 101,126
46,046
Love/
Low/
10,618,102
- - - - - 18,664
- 18,664
18,664
- - - - -
Moderate
Moderate
- 12,500 - - 1,270,009
9,577,506 11,054,066
10,719,158
Arts in
Income
Income
Public
Public
Urban South Coast
Housing-
Housing-
Totals
Safety
Places
Forestry Air Quality CMAQ
PA No. 1
PA No. 2
2005
2004
10,532
903,406
- 148,293 -
6,758,136
9,059,259
19,227,428
9,128,781
-
-
- - -
74,249
8,500
82,749
83,642
55
4,438
- 720 -
30,346
44,826
91,485
33,377
-
-
- - -
3,358,098
9,500,000
12,858,098
12,741,527
-
-
- - -
84,625
42,801
179,573
141,715
-
-
- - -
1,110
-
1,110
-
10,587
907,844
- 149,013 -
10,306,564
18,655,386
32,440,443
22,129,042
- 12,500 - - - 11,120
77,506 101,126
46,046
- - - - - 1,240,225
9,500,000 10,740,225
10,618,102
- - - - - 18,664
- 18,664
18,664
- - - - -
- 194,051
36,346
- 12,500 - - 1,270,009
9,577,506 11,054,066
10,719,158
- - - 2,117,873 - 2,117,873 2,123,425
- - - - - 1,110 - 1,110 -
10,587 895,344 - 149,013 - 6,917,572 9,077,880 19,267,394 9,286,459
10,587 895,344 - 149,013 - 9,036,555 9,077,880 21,386,377 11,409,884
10,587 907,844 - 149,013 - 10,306,564 18,655,386 32,440,443 22,129,042
85
CITY OF LA QUINTA
Non -Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended .Tune 30, 2005
:.
Lighting
Gas
Federal
Indian
and
Tax
Assistance
SLEBG
Gamiig
LandscTe RCTC
uinib
Revenues:
Taxes
$-
Developer fees
-
-
-
- -
1,667,144
Intergovel unental
624,196
30,000
100,000
177,250
- -
-
Investmentincome
5,474
-
588
3,117
- -
21,438
Special assessments
-
-
-
-
825,292 -
-
Rental income
-
-
-
-
-
Loan repayments
-
-
-
-
Miscellaneous
-
-
-
-
-
Total revenues
629,670
30,000
100,588
180,367
825,292 -
1,688,582
Expenditures:
Current:
Public safety
-
-
-
-
-
Planning and
development
-
-
-
-
'
Public works
622,200
-
-
-
789,884 -
-
Capital outlay
-
-
-
-
-
Total expenditures
622,200
-
-
-
789,884 -
-
Excess (deficiency) of
revenues over (under)
expenditures
7,470
30,000
100,588
180,367
35,408 -
1,688,582
Other financing sources (uses):
Transfers in
-
-
-
-
- _
_
Transfers out
(195,531)
(197,239)
(100,000)
(37,427)
- -
(289,716)
Proceeds from sale of capital assets
-
-
-
-
- -
-
Total other financing
sources (uses)
(195,531
(197,239)
10{ 0,000
(37,427)
- -
(289,716
Net change in fund balances
(188,061)
(167,239)
588
142,940
35,408 -
1,398,866
Fund balances (deficit) at
beginning of year
409,534
(10,073)
-
-
-
595,035
Fund balances (deficit)
at end of year
$ 221,473
(177,312
588
142,940
35,408 -
1,993,901
:.
- 12,878
- 60,429 - -
- 60,429 - 12,878
- - - - 528
2,189,402 1,350,908 3,553,188 4,171,309
- - - 1,412,084 1,369,745
60,429 124,821
2,189,402 1,350,908 5,025,701 5,666,403
174 209,667 - 217,950 419,323 7,036,112 2,841,491 12,767,132 7,938,244
2,000 - - - - - 2,000 2,000
- (79,011) - (198,983) (419,323) (2,478,347) (7,363,357) (11,358,934) (8,215,378)
668,642 7,897,653 8,566,295 -
2,000
(79,011)
(198,983)
Low/
Low/
(2,790,639)
(8,213,378)
2,174
Moderate
Moderate
- 5,226,407
3,375,787
9,976,493
Arts in
8,413
Income
Income
- 3,810,148
5,702,093
Public
Public Urban
South Coast
Housing-
Housing-
Totals
Safety
Places forestry
Air Quaility
CMAQ PA No. 1
PA No. 2
2005
2004
-
- -
- 6,773,423
3,509,241
10,282,664
9,023,407
-
254,834 -
_ -
-
1,921,978
1,273,832
- -
227,682
419,323 -
-
1,578,451
831,259
174
15,262 -
3,146
_ 80,270
140,742
270,211
141,461
-
-
-
- -
-
825,292
816,045
-
-
- 310,574
209,669
520,243
431,178
-
-
- 2,048,855
332,747
2,381,602
612,820
-
-
_
12,392
-
12,392
474,645
174
270,096 -
230,828
419,323 9,22.5,514
4,192,399
17,792,833
13,604,647
- 12,878
- 60,429 - -
- 60,429 - 12,878
- - - - 528
2,189,402 1,350,908 3,553,188 4,171,309
- - - 1,412,084 1,369,745
60,429 124,821
2,189,402 1,350,908 5,025,701 5,666,403
174 209,667 - 217,950 419,323 7,036,112 2,841,491 12,767,132 7,938,244
2,000 - - - - - 2,000 2,000
- (79,011) - (198,983) (419,323) (2,478,347) (7,363,357) (11,358,934) (8,215,378)
668,642 7,897,653 8,566,295 -
2,000
(79,011)
(198,983)
419,323] (1,809,705
534,296
(2,790,639)
(8,213,378)
2,174
130,656
- 18,967
- 5,226,407
3,375,787
9,976,493
(275,134)
8,413
764,688
- 130,046
- 3,810,148
5,702,093
11,409,884
11,685,018
10,587
895,344
- 149,013
- 9,036,555
9,077,880
21,386,377
11,409,884
87
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, 2005
Revenues:
Intergovernmental
Investment income
Total revenues
Expenditures:
Current:
Public works
Total expenditures
Excess (deficiency) of revenue
over (under) expenditures
Other financing sources (uses):
Transfers out
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Bud et
Original Final
Variance with Prior
Final Budget Year
Actual Positive (negative) Actual
$ 562,000
614,600
624,196
9,596
605,143
7,900
7,600
5,474
(2,126)
7.116
569,900
622,200
629,670
_ 7,470
612,259
569,900
622,200
622,200
-
553,700
569,900
622,200
622,200
-
553,700
-
-
7,470
7,470
58,559
-(275,798)
(195,531)
80,267
23,725)
-
(275,798)
(188,061)
87,737
34,834
409,534
409,534
409,534
- _
374,700
$ 409,534
133,736
221,473
87,737
409,534
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, 2005
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
Budget
Original Final
$ 160,000 340,355
160,000 340,355
Variance with
Final Budget
Actual Positive (negative)
30,000
30,000
(310,355)
(310,355)
Prior
Year
Actual
30,000
30.000
(30,000)
(509,535
197,239
312,296
32,753
(30,000)
(509,535)
(197,239)
312,296
(32,753)
130,000
(169,180)
(167,239)
1,941
(2,753)
(10,073) (10,073)
$ 119,927 (179,253)
89
10,073) -
(177,312 1,941
(7,320)
(10,073)
CITY OF LA QUINTA
Special Revenue Funds
State Law Enforcement Block Grant (SLEBG) Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
Variance with Prior
Budget Final Budget Year
Original Final _Actual Positive (negative) Actual
Revenues
Intergovernmental $ -
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 $ -
100,000
100,000
- 100,000
-
588
588 122
100,000
100,588
588 100,122
(100,000
(100, 000)
-107, 974)
(100,000)
(100,000
- (107,974)
-
588
588 (7,852)
-
-
- 7,852
-
588
588 -
.E
CITY OF LA QUINTA
Special Revenue Funds
Indian Gaming Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Intergovernmental
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
91
Variance with Prior
Budget
Final Budget Year
Ori incl Final
Actual
Positive (negative) Actual
$ - 177,250
177,250
- -
-
3,117
3,117 -
- 177,250
180,367
3,117 -
- (177,250)
37,427)
139,823 -
(177,250)
(37,427)
139;823 -
- -
142,940
142,940 -
$ - -
142,940
142,940 -
91
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, 2005
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
$ 825,800 825,800
825,800 825,800
825,800 825,800
825,800 825,800
92
Variance with
Final Budget
Actual Positive (negative)
825,292
825,292
789,884
789,884
35,408
35,408
508.
(508
35,916
35,916
35,408
35,408
Prior
Year
Actual
816,045
816,045
816,045
816,045
CITY OF LA QUINTA
Special Revenue Funds
Riverside County Transportation Commission (RCTC) Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
93
Variance with Prior
Budget
Final Budget Year
Original
Final
Actual Positive (negative) Actual
Revenues:
Investment income
$ 10000
411,644
- (411,644) -
Total revenues
100,000
411,644
- (411,644) -
Other financing sources (uses):
Transfers out
(1,660,635)
2,056,829
- 2,056,829 -
Total other financing
sources (uses)
(1,660,635)
(2,056,829)
- 2,056,829 -
Net change in fund balances
(1,560,635)
(1,645,185)
- 1,645,185 -
Fund balances at beginning of year
-
-
- - -
Fund balances at end of year
$ 1,560,635
1,645,185)
1,645,185 -
93
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, 2005
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
Prior
Year
Actual
344,198
8,387
352,585
146,321
(146,321)
206,264
388,771
595,035
Variance with
Budget
Final Budget
On
Final
Actual
Positive (ne atg ive)
$ 150,000
150,000
1,667,144
1,517,144
3,900
3,900
21,438
17,538
153,900
153,900
1,688;582
1,534,682
-a
(945,147
289,716)
655,431
-
(945,147)
(289,716
655,431
153,900
(791,247)
1,398,866
2,190,113
595,035
595,035
595,035
-
$ 748,935
(196,212)
1,993,901
2,190,113
Prior
Year
Actual
344,198
8,387
352,585
146,321
(146,321)
206,264
388,771
595,035
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, 2005
WM
Variance with
Prior
Budget
Final Budget
Year
Original -
Final
Actual
Positive (negative)
Actual
Revenues:
Investment income
$ 100
100
174
74
159
Total revenues
100
100
174
74
159
Expenditures:
Current:
Public safety
2,000
.2,000
-
2,000
-
Total expenditures
2,000
2,000
-
2,000
-
Excess (deficiency) of revenues
over (under) expenditures
(1,900)
(11900)
174
2,074
159
Other financing sources (uses):
Transfers in
2,000
2,000
2,000
-
2,000
Total other financing
sources (uses)
2,000
2,000
2,000
-
2,000
Net change in fund balances
100
100
2,174
2,074
2,159
Fund balances at beginning of year
8,413
8,413
8,413
-
6,254
Fund balances at end of year
$ 8,513
8,513
10,587
2,074
8,413
WM
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Current:
Community services
Capital outlay
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, 2005
_ Budget
Original Final
$ 97,500
97,500
1,100
1,100
98,600
98,600
Total expenditures
Excess (deficiency) of revenue:
over (under) expenditures
Other financing sources (uses):
Transfers out
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
5,300
5,300
447.425
188,813
452,725
194,113
Variance with
Final Budget
Actual Positive (negative)
254,834
15,262
270,096
60,429
60,429
(354,125) (95,513 209,667
157,334
14,162
171,496
5,300
128,384
133,684
305,180
Prior
Year
Actual
287,054
13,578
300,632
124,821
124,821
175,811
36+6,826
79,011
287,815 19,166
(354,125) (462,339)
130,656
592,995 156,645
764,688 764,688
764,688
- 608,043
$ 410,563 302,349
895,344
592,995 764,688
CITY OF LA QUINTA
Special Revenue Funds
Urban Forestry Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Intergovernmental
Total revenues
Net change in fund balances
Fund balances at
beginning of year
Fund balances (deficit)
at end of year
Budget
Original Final
1. I t10
1,100
1.100
1,100
1:100
11,100
Variance with Prior
Final Budget Year
Actual Positive (negative) Actual
(1,100) -
(1,100) -
(1,100) -
1`100 1,100 -
97
(1,100) -
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, 2005
Expenditures:
Current:
Planning and development
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 at beginning of year
Fund balances at end of year
22,945
22,945
12,878
Variance with
22,945
Budget
12,878
Final Budget
Original Final
Actual
Positive (negative)
Revenues:
Intergovernmental
$ 34,415 250,819
227,682
(23,137)
Investment income
2,000 2,000
3,146
1,146
Total revenues
36,415 252,819
230,828
21,991
Expenditures:
Current:
Planning and development
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 at beginning of year
Fund balances at end of year
22,945
22,945
12,878
10,067
22,945
22,945
12,878
10,067
13,470 229,874 217,950 (11,924)
(216,404 (198,983 17,421
(216,404) (198,983 17,421
13,470 13,470 18,967
13 0, 046 13 0, 046 13 0, 046
$ 143,516 143,516 149,013
W.
5,497
5,497
Prior
Year
Actual
35,448
2,072
37,520
17,386
17,386
20,134
20,134
109,912
130,046
CITY OF LA QUINTA
Special Revenue Funds
Congestion Management Air Quality (CMAQ) Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Intergovernmental
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
$ 553,785 553,785 419,323
553,785 553,785 419,323
(134,462)
134,462
- (553,785 (419,323) 134,462
- 553,785 (419,323)
553,785 - -
$ 553,785 - -
134,462
Revenues:
Taxes
Developer fees
Investment income
Rental income
Loan repayments
Miscellaneous
Total revenues
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, 2005
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
$ 6,246,300 6,480,979 6,773,423
20,800 20,800 80,270
341,000 341,000 310,574
- - 2,048,855
12,392
6,608,100 6,842,779 9,225,514
Expenditures:
Current:
Planning and development 3,786,329 5,620,980 2,189,402
Total expenditures 3,786,329 5,620,980 2,189,402
Excess (deficiency) of revenues
over (under) expenditures 2,821,771 1,221,799 7,036,112
Other financing sources (uses):
Transfers out
Proceeds from sale of
capital assets
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(1,733,369) (2,478,347) (2,478,347)
150,000 990,000 668,642
1,583,369
1,488,347
1,809,705
1,238,402
(266,548)
5,226,407
3,810,148
3,810,148
3,810,148
$ 5,048,550
3,543,600
9,036,555
100
292,444
59,470
(30,426)
2,048,855
12,392
2,382,735
3,431,578
3,431,578
5,814,313
(321,358)
(321,358
5,492,955
5,492,955
Prior
Year
A '4 1
5,991,739
20,275
367,598
490,398
366,076
7,236,086
3,591,028
3,591,028
3,645,058
(3,948,080)
3,948,080)
(303,022)
4,113,170
3,810,148
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Income Housing Project Area No. 2 Fund
Revenues:
Taxes
Developer fees
Investment income
Rental income
Repayment of loans
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2005
108,569
10,193,174 10,423,717 4,192,399 (6,231,318) 4,058,048
5,363,759 6,047,702 1,350,908
5,363,759 6,047,702 1,350,908
4,829,415 4,376,015 2,841,491
4,696,794 562,895
4,696,794 561895
(1,534,524) 3,495,153
Other financing sources (uses):
Variance with
Prior
Budget
Transfers out
(337,867)
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
$ 3,115,000
3,345,543
3,509,241
163,698
3,031,668
7,054,074
7,054,074
-
(7,054,074)
622,305
24,100
24,100
140,742
116,642
109,504
-
-
209,669
209,669
63,580
-
-
332,747
332,747
122,422
108,569
10,193,174 10,423,717 4,192,399 (6,231,318) 4,058,048
5,363,759 6,047,702 1,350,908
5,363,759 6,047,702 1,350,908
4,829,415 4,376,015 2,841,491
4,696,794 562,895
4,696,794 561895
(1,534,524) 3,495,153
Other financing sources (uses):
Transfers out
(337,867)
(7,350,044)
(7,363,357)
(13,313)
(3,775,970)
Proceeds from sale of capital assets
-
8,637,300
7,897,653
(739,647)
-
Total other financing
sources (uses)
(337,867)
1,287,256
534,296
(752,960)
(3,775,970)
Net change ui fund balances
4,491,548
5,663,271
3,375,787
(2,287,484)
(280,817)
Fund balances at beginning of year
5,702,093
5,702,093
5,702,093
-
5,982,910
Fund balances at end of year
$10,193,641
11,365,364
9,077,880
(2,287,484)
5,702,093
101
(This page intentionally left blank)
102
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:
Redevelopment Agency, P.A. No. 1 and No. 2 - To account for the accumulation of resources for
the payment of debt service for bond principal interest and trustee fees.
La Quinta Financing Authority Fund - To account for rental activity for the Civic Center and
rental income used to pay the Financing Authority Civic Center and 2004 Local Agency
Revenue Bond debt obligations.
103
CITY OF LA QUINTA
Debt Service Funds
Redevelopment Agency Project Area No. 1 F►.uid
Schedule of Revenues, Expenditures and Changes
m Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Cturent:
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
Other financing sources (uses):
Payment to bond escrow
Transfers in
Transfers out
Total other fuiancing
sources (uses)
Net change in fluid balances
Fund balances at beginning of year
Fund balances at end of year
Budget
Original Final Actual
Variance with
Prior
Final Budget
Year
Positive (ne atg ive)
Actual
$ 24,985,400
25,923,915
27,093,693
1,169,778
23,966,954
66,000
66,000
255,628
189,628
201,721
25,051,400
25,989,915
27,349,321
1,359,406
24,168,675
496,585 496,585 365,810 130,775 377,920
5,455,689 3,121,114 3,121,114 - 2,920,707
9,798,281 8,882,733 8,967,948 (85,215) 9,018,569
1,253,848
14,177,282 14,338,587 14,421,097 (82,510) 11,767,922
29,927,837 26,839,019 26,875,969 (36,950) 25,338,966
(4,876,437) (849,104) 473,352 1,322,456
1,733,369 2,478,347 2,478,347
- (2,438,029) (2,438,029)
1,733,369
40,318
40,318
(3,143,068)
(808,786)
513,670
4.088.071
4,088,071
4,088,071
$ 945,003
3,279,285
4,601,741
104
1,322,456
1,322,456
(1,170,291)
(15,708,019)
18,693,322
2,985,303
1,815,012
2,273,059
4,088,071
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, 2005
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Current:
Plannuig and development
Debt service:
Principal
Interest
Payment to bond escrow
Payments 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 in fund balances
Fund balances (deficit) at
beginning of year
Fund balances (deficit) at end of year
Budget
Original Final Actual
Variance with Prior
Final Budget Year
Positive (ne ative) Actual
$ 12,459,800 13,382,173 14,036,962 654,789 12,126,671
- - 174,272 174,272 75,625
12,459,800 13,382,173 14,211,234 829,061 12,202,296
179,013
179,013
180,374
(1,361)
168,983
185,425
95,000
195,000
(100,000)
276,169
570,706
1,782,844
1,782,844
-
1,536,694
-
-
-
-
337,259
10,605,577
11,394,169
11,335,224
58,945
9,680,225
11,540,721
13,451,026
13,493,442
(42,416)
11,999,330
919,079
(68,853)
717,792
786,645
202,966
-
-
-
-
(4,246,981)
337,867
4,099,819
4,142,039
42,220
4,922,224
-
(994,948)
(994,948)
-
(5,800,000)
337,867
3,104,871
3,147,091
42,220
(5,124,757)
1,256,946
3,036,018
3,864,883
828,865
(4,921,791)
(11,104,297)
(11,104,297)
(11, 1 04,2 97)
-
(6,182,506)
$ (9,847,351)
(8,068,279)
(7,239,414)
828,865
(11,104,297)
105
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, 2005
Revenues:
Investment income
Rental income
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
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)
$ - - 58
681,200 681,200 681,220
10,000 10,000 3,481
691,200 691,200 684,759
9,686
9,686
5,231
315,000
315,000
315,000
366,220
3,356,269
3,356,269
690,906
3,680,955
3,676,500
58
20
(6,519)
(6,441)
4,455
4,455
294 (2,989,755) (2,991,741 (1.986
2,990,049 2,990,049
- 2,990,049 2,990,049
294 294 (1,692)
5,052 5,052 5,052
$ 5,346 5,346 3,360
106
Prior
Year
Actual
100
680,772
9,686
690,558
5,205
300,000
380,830
686,035
4,523
4,523
529
5,052
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 fcacIIities 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 1 - 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
r unu, t ommuruiy t -enter rung, 3ueet racimy runa., rarr racrrrty rung, ,vire racmty runt - lo
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.
107
Assets
Cash and investments
Cash with fiscal agent
Accounts receivable
Interest receivable
Advances to other funds
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deposits payable
Due to other funds
Advances from other funds
Total liabilities
Fund balances:
Unreserved:
Designated for
capital projects
Undesigated
Total fund balances
Total liabilities and
fund balances
CITY OF LA QUINTA
Non -Major Capital Projects Funds
Combining Balance Sheet
June 30, 2005
3,440,349 2,498,530 -
3,440,349 - 2,498,530
868,591 7,203,437 - 2,162,676 9,881 795,713
3,269,023 - (2,498,530) - -
868,591 7,203,437 (3,269 023 2,162,676 (2„498,530) 9,881 795,713
S 86&591 7,203,437 171,326 2,162,676 - 9,881 795,713
108
County
Parks and
Civic
Library Library
Communit
Infrastructure
Trans2ortation
Recreation
Center
Development Development
Center
$ 863,719
7,165,737
169,039
2,151,594
9,554
791,680
4,872
37,700
2,287
11,082
- 327
4,033
868,591
7;203,437
171,326
2,162 676
9,881
795,713
3,440,349 2,498,530 -
3,440,349 - 2,498,530
868,591 7,203,437 - 2,162,676 9,881 795,713
3,269,023 - (2,498,530) - -
868,591 7,203,437 (3,269 023 2,162,676 (2„498,530) 9,881 795,713
S 86&591 7,203,437 171,326 2,162,676 - 9,881 795,713
108
Redevelopment
Redevelopment Agency Financing
Street Park Fire A.D. 2000-1 Agency Taxable Bond Authority
Facility Facility Facility Phase VI PA No. 2 PA No.l Projects
Totals
2005 2004
178,435 44,717 310,050 485,119
1,921 12,171,565
14,014,300
- - - - -
5,096 5,096
8,545,446
- - 60,900
- 60,900
63,104
907 226 - 1,511 671 -
63,616
48,668
- - - 1,122,148
- 1,122,148
1,260,695
179,342 44,943 311,561 1,668,838
7,017 13,423,325
23,932,213
- - - - 8,170 8,170
16,894
- - - 27,835 - - 27,835
27,835
- - 37 - - - 37
2,746,937
- - 1,122,148 - - - 7,061,027
5,336;158
- - 1,122,185 - 36,005 - 7,097,064
8,127.824
179,342 44,943 311,561 1,632,833 7,017 13,215,994
20,926,930
- 1122,185) - - - (5,889338)
(5,122,541)
179,342 44,9431 1(, 22,185) 311,561 1,632,833 - 7,017 6,326,256
15,804,389
179,342 44,943 - 311,561 1,668,838 7,017 13,423,325
23,932,213
109
CITY OF LA QUINTA
Non -Major Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2005
County
Parks and Civic Library Library Community
hifrastructure Transportation Recreation Center Development Development Center
Revenues
Developer fees
$ -
2,239,022
717,856
576,248
297,033
-
138,328
hltergovenunental
-
-
-
-
190,863
-
Irivestinent income
16,302
131,329
3,953
37,658
24,750
1,699
13,669
Total revenues
16,302
2,370,350
721,809
613,906
321,783
192,562
151,997
Expenditures:
Current:
General government
-
-
-
205,410
-
-
-
Planning and
development
-
-
-
-
-
-
-
Public works
-
392,878
-
-
-
-
Debt service:
Interest and fiscal charges
-
-
81,740
-
8,482
-
-
Total expenditures
-
392,878
81,740
205,410
8,482
-
-
Excess (deficiency) of
revenues over (under)
expenditures
16,302
1,977,472
640,069
408,496
313,301
192,562
151,997
Other financing sources (uses):
Issuance of tax allocation bonds
-
-
-
-
-
-
Issuance of revenue bonds
-
-
-
-
-
-
-
Bond premium and discount
-
-
-
-
-
-
Transfers in
-
-
-
-
-
-
-
Transfers out
(296,$2U
1„113,129
(47,44
135,607
3,746 450
590,863
-
Total other financing
sources (uses)
(296,820)1,1(
13,129)
(47,440)
(13� 5 607)
3,746,450
(590,863
-
Net change in fund balances
(280,518)
864,343
592,629
272,889
(3,433,149)
(398,301)
151,997
Fund balances (deficit) at
beginning of year
1,149,109
6,339,094
3,861,652
1,889,787
934,619
408,182
643,716
Fund balances (deficit) at end of yea
S 868,591
7,203,437
3,269,0123
2,162,6762,4(
98,530
9,881
795,713
110
24,310
24,310
205,410 207,156
193,088 - - 193,088
174,152
- - - 392,878
63,050
- - - 48,076 162,608
Redevelopment
- 193,088 - 48,076 953,984
2,077,252
2,910,308
Redevelopment
Agency
Financing
Street
Park
Fire
A.D. 2000-1
Agency
Taxable Bond
Authority
Totals
26,400,000
Facilit
Facility
Facility
Phase VI
PANo. 2
PANo. I
Proj La
2005
2004
30,495
7,182
163,014
-
-
-
-
4,169,178
4,444,241
-
-
-
-
-
-
-
190,863
200,000
3,075
792
-
6,559
38,475
39,593
93
317,946
343,319
33,570
7,974
163,014
6,559
38,475
39,593
93
4,677,987
4,987,560
24,310
24,310
205,410 207,156
193,088 - - 193,088
174,152
- - - 392,878
63,050
- - - 48,076 162,608
1,632,894
- 193,088 - 48,076 953,984
2,077,252
33,570
7,974
138,704
6,559
(154,613)
39,5934(
7,983)
3,724,003
2,910,308
-
-
-
-
-
-
-
-
26,400,000
-
-
-
-
-
-
-
90,000,000
-
-
-
r
-
-
(1,506,396)
-
-
-
-
-
-
-
-
5,800,000
-
-
-
(147,372)
(1,341,046)
(5,783,409)
-
(13,202,136)
(116,906,003)
-
-
-
(147,372)
(1,341,046)
(5,783,409)
-
(13,202,136)
3,787,601
33,570
7,974
138,704
(140,813)
(1,495,659)
(5,743,816)
(47,983)
(9,478,133)
6,697,909
145,772
36,969
1,2601,889
452,374
3,128,492
5,743,816
55,000
15,804,389
9,106,480
179,342
44,943
(1,122,185)
311,561
1,632,833
-
7,017
6,326,256
15,804,389
111
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, 2005
Budget
____Original _ Final Actual
Revenues:
Developer fees
$ -
87,500
-
Intergovenunental
-
8,476,114
921,527
Miscellaneous
-
-
Total revenues
-
8,563,614
921,527
Expenditures:
Capital projects
15,011,762
83,670,473
39,559,080
Debt service:
Principal
162,546
162,546
162,546
Interest and fiscal charges
85.908
85,908
85,908
Total expenditures
15,260,216
83,918,927
39,807,534
Excess (deficiency) of revenues
over (under) expenditures
(15,260,216)
(75,355,313)
38,886,007)
Other financing sources (uses):
Transfers in
-
75,355,313
38,886,007
Transfers out
-
-
-
Total other financing
sources (uses)
-
75,355,313
38,886,007
Net change in fiind balances
(15,260,216)
-
-
Fund balances at beginning of year
-
-
-
Fund balances at end of year
$ (15,260,216)
-
-
112
Variance with
Prior
Final Budget
Year
Positive (negative)
Actual
(87,500) -
(7,554,587) 5,931,382
153,000
(7,642,087) 6,084,382
44,111,393 43,207,098
44,111,393 43,207,098
36,469,306 (37,122,716
(36,469,306) 44,625,348
7,502,632) (7,502,632)
(43,971,938) 37,122,716
(7,502,632) -
(7,502,632) -
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
Year ended June 30, 2005
Revenues:
Investment income
Rental income
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 begiiming of year
Fund balances at end of year
Budget
Original Final
Variance with
Ficial Budget
Actual Positive (negative)
Prior
Year
Actual
$ - 900,000 767,036 (132,964) 635,823
- - - - 6.794
-
900,000
767,036
(132,964)
642,617
607,306
503,706
558,792
(55,086)
1,832,408
607,306
503,706
558,792
(55,086)
1,832,408
(607,306)
396,294
208,244
(188,050)
(1,189,791)
-
442,928
442,928
-
14,064,243
(2;776,000)
(39,762,752)
(17,612,949)
22,149,803
(6,561,612)
(2,776,000) (39,319,824) (17,170,021)
(3,383,306) (38,923,530) (16,961,777)
47,403,373 47,403,373 47,403,373
$ 44,020,067 8,479,843 30,441,596
113
22,149,803
21,961,753
21,961,753
7,502,631
6,312,840
41,090,533
47,403,373
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, 2005
Revenues:
Investment income
Total revenues
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at begriming of year
Fund balances at end of year
Variance with
Budget Final Budget
Original Final Actual Positive (negative)
$ - 1,000,000 1,191,332 191,332
1,000,000 1,191,332 191,332
1,920 965 (753,613) 1,167,352
- (1920,965
(753,613
- (920,965)
437,719
57,656,982 57,656,9$2
57,656,982
$ 57,656,982 56,736,017
58,094,701
114
1,167,352
1,358,684
1,358,684
Prior
Year
Actual
2,781
2,781
66,323,236
(8,669,035)
57,654,201
57,656,982
57,656,982
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, 2005
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
Oral Final
Variance with
Final Budget
Actual Positive (negative
$ 15,600 15,600 16,302
15,600 15,600 16,302
Prior
Year
Actual
31,458
31,458
(1,140,356) (296,820) 843,536 (1,120,840)
- _ (1,140,350
(296,820)
15,600 (1,124,756)
(280,518)
1;149,109 1,149,109
1,149,109
$ 1,164,709 24,353
868,591
115
843,536 (1,120,840)
844,238 (1,089,382)
- 2,238,491
844,238 1,149,109
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, 2005
Variance with Prior
Budget Final Budget Year
Original Final Actual Positivene ative Actual
Revenues
Developer fees
$ 721,400
721,400
2,239,022
1,517,622
2,358,474
Investment income
37,300
37,300
131,328
94,028
90,615
Total revenues
758,700
758,700
2,370,350
1,611,650
2,449,089
Expenditures:
Current:
Public works
-
392,878
392,878
-
63,050
Total expenditures
-
392,878
392,878
-
63,050
Excess (deficiency) of revenues
over (under) expenditures 758,700
365,822
1,977,472
1,611,650
2,386,039
Other financing sources (uses):
Transfers out
1,853,550
4,377,866
1,113,129)
3,264,737
22,420
Total other financing
sources (uses)
1,853,550)
(4,377,866)
(1,113,129)
3,264,737
22,420
Net change in fund balances
(1,094,850)
(4,012,044)
864,343
4,876,387
2,363,619
Fund balances at beginning of year
6,339,094
6,339,094
6,339,094
-
3,975,475
Fund balances at end of year
$ 5,244,244
2,327,050
7,203,437
4,876,387
6,339,094
116
CITY OF LA QUTNTA
Capital Projects Funds
Parks and Recreation Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2005
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Debt service:
Interest and fiscal charges
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
Ori nig nal Final
$ 251,000 501,000
251.000 5017000
81.740
81,740
(81,740) 103,476
(81,740) 103,476
251,000 501.000
Variance with
Prior
755,758
Final Budget
Year
Actual
Positive (negative)
Actual
717,856
216,856
837,411
3,953
3,953
21,823
721.809
220,809
859,234
81.740
81,740
(81,740) 103,476
(81,740) 103,476
251,000 501.000
640,069
139.069
755,758
- (214,814)
(47,440)
167,374
(403,751)
- (214,814)
(47,440)
167,374
(403,751)
251,000 286,186
592,629
306,443
352,007
(3,861,652) (3,861,652) (3,861,652)
$ (3,610,652) (3,575,466) (3,269,023) 306,443
117
(4,213,659)
(3,861,652)
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, 2005
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Current:
General government
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
$ 192,500 192,500 576,248 383,748 539,955
- - 37„658 37,658 33.929
192,500 192,500 613,906 ,421,406 573,884
204,366 _204,366 205,410
204,366 204,366 _ 205.410
(11,866) (11,866 408,496
(1,044
(1,044)
207,156
207,156
420,362 366,728
Other financing sources (uses):
Transfers out (3,081,18 3,281,724 135,607) 3,146,117 (260,154
Total other financing
sources (uses) (3,081,187) (3,281,724) (135,607) 3,146,117 (260,154)
Net change in fund balances
(3,093,053)
(3,293,590)
272,889 3,566,479
106,574
Fund balances at beginning of year
1,889,787
1,889,787
1,889,787 -
1,783,213
Fund balances at end of year
$ (1,203,266)
(1,403,803)
2,162,676 3,566,479
1,889,787
118
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, 2005
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 112,500
112,500
297,033
184,533
356,492
Investment income
-
-
24,750
24,750
17,177
Total revenues
112,500
112,500
321,783
209,283
373,669
Expenditures:
Debt service:
Interest and fiscal charges
-
-
8,482
8,482
-
Total expenditures
-
-
8,482
(8,482
-
Excess (deficiency) of
revenues over (under)
expenditures
112,500
112,500
313,301
200,801
373,669
Other financing sources (uses):
Transfers out
-
(3,746,450)
(3,746,450)
-
(328,480)
Total other financing
sources (uses)
-
3,746,450
(3,746,450)
-
328,480
Net change in fund balances
112,500
(3,633,950)
(3,433,149)
200,801
45,189
Fund balances at beginning of year
934,619
934,619
934,619
-
889,430
Fund balances (deficit)
at end of year
$ 1,047,119
(2,699,331
2,498,530
200,801
934,619
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, 2005
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negativ'e) Actual
Revenues:
Intergovernmental $ 190,863 190,863 190,863 - 200,000
Investment income 100 100 1,699 1,599 5,879
Total revenues 190,963 190,963 192,562 1,599 205,879
Other financing sources (uses)
Transfers out 590,863 (590,863 - -
Total other financing
sources (uses) (590,863)( 590,863 - -
Net change in fund balances 190,963 (399,900) (398,301) 1,599 205,879
Fund balances at beginning of year 408,182 408,182 4082182 - 202,303
Fund balances at end of year S 599,145 8,282 9,8$1 1,599 408,182
120
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, 2005
Revenues:
Developer fees
Investment income
Total revenues
Variance with
Bud et Final Budget
Original Final Actual ositive (negative
$ 48,500 48,500 138,328 89,828
10,700 10,700 13,669 2,969
59,200 59,200 151,997 92,797
Prior
Year
Actual
153,585
10,338
163,923
Fund balances at beginning of year
643,716
643,716
643,716
- 479,793
Fund balances at end of year
$ 702,916
7022916
795,713
92,797 643,716
121
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, 2005
122
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 9,800
9,800
30,495
20,695
31,828
Investment income
1,900
1,900
3,075
1,175
2,435
Total revenues
11,700
11,700
33,570
21,870
34,263
Fund balances at beginning of year
145,772
145,772
145,772
-
111,509
Fund balances at end of year
$ 157,472
157,472
179,342
21,870
145,772
122
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, 2005
123
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negatived
Actual
Revenues:
Developer fees
$ 2,500
2,500
7,182
4,682
9,151
Investment income
500
500
792
292
637
Total revenues
3,000
3,000
7,974
4,974
9,788
Fund balances at beginning of year
36,969
36,969
36,969
-
27,181
Fund balances at end of year
$ 39,969
39,969
44,943
_4,974
36,969
123
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, 2005
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Developer fees $ 32,100 32,100 163,014 130,914 157,345
Investment income - _ - - 598
Total revenues 32,100 32,100 163,014 130,914 157,943
Expenditures:
Debt service:
Interest and fiscal charges - - 24,310 24,310) 10,186
Total expenditures - - 24,310 (24,310 10,186
Excess (deficiency) of
revenues over (under)
expenditures 32,100 32,100 138,704 106,604 147,757
Other financing sources (uses):
Transfers out (1,500,000) 1,500,000) - _ 1,500,000 1,500,000
Total other financing
sources (uses) (1,500,000) (1,500,000) -
Net change in fund balances (1,467,900) (1,467,900) 138,704
Fund balances (deficit)
at beginning of year 1,260,889 1,260,889 (1,260,889
Fund balances (deficit)
1,500,000 1,500,000
114,657 (1,352,243)
91,354
at end of year $(2,728,789) (2,728,789) (1,122,185) 1.14,657 1,260,889
124
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, 2005
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
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
$ 6,000 6,000 6,559 559 8,013
6,000 6,000 6,559 559 8,013
- (142,507) (147,372) (4,865) -
- (142,507) (147,372
6,000 (136,507) (140,813)
452,374 452,374 452,374
$ 458,374 315,867 311,561
125
(4,865) -
(4,306) 8,013
- 444,361
4,306 452,374
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, 2005
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Investment income $ - 50,000 38,475 11,525) 49,219
Total revenues - 50,000 38,475 (11,525 49,219
Expenditures:
Current:
Planning and development _ 202,413 202,413 193,088 9,325 174,152
Total expenditures 202,413 202,413 193,088 9,325 174,152
Excess (deficiency) of revenues
over (under) expenditures (202,413) (152,413) (154,613 2,200 124,933)
Other financing sources (uses):
Transfers in - - - - 5,800,000
Transfers out - (1,826,079 (1,341,046) 485,033 (5,623,604)
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(1,826,079) (1,341,046)
(202,413) (1,978,492) (1,495,659)
3,128,492 3,128,492 3,128,492
$ 2,926,079 1,150,000 1,632,833
126
485,033 176,396
482,833
482,833
51,463
3,077,029
3,128,492
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, 2005
Revenues:
hivestment income
Total revenues
Expenditures:
Debt service:
Interest and 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 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
- 50,000 39,593 (10,407) 71,198
50,000 39,593 (10,407) 71,198
- - - 949.968
- - - - 949,968
50,000 39,593 (10,407) (878,770)
- - - 26,400,000
(5,778,816) (5,783,409) (4,593) (19,777,414)
(5,778,816) (5,783,409)
- (5,728,816) (5,743,816)
5,743,816 5,743,816 5,743,816
$ 5,743,816 15,000 -
127
(4,593) 6,622,586
5,743,816 5;743,816
5,743,816 5,743,816
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, 2005
Revenues:
Investment income
Total revenues
Expenditures:
Debt service:
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Issuance of revenue bonds
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit) at
beginning of year
Fund balances at end of year
Budtet
Chial Fuial Actual
Variance with Prior
Final Budget Year
Positive (negative) Actual
93 93 -
93 93 -
- 55,000 48,076 6,924 2,075,660
55,000 48,076 6,924 2,075,660
(55,000) (47,983) 6,924 (2,075,660)
- - - 90,000,000
- 131,792 - (131,792) -
- - - (87,869,340)
131,792 - - 2,130,660
- 76,792 (47,983) (76,792) 55,000
55,000 55,000 55,000 - -
55,000 131,792 7,017 (76,792) 55,000
128
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 field
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.
Park Equipment and Facilities Fund — used to account for the purchase and replacement of City
owned park facility infrastructure.
129
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Net Assets
June 30, 2005
Liabilities
Current liabilities:
Accounts payable 14,101 6,885 - 20,986 28,884
Accrued salaries and benefits - 4,024 - 4,024 -
Total liabilities 14,101 10,909 - 25,010 28,884
Net Assets
Invested in capital assets, 668,943 339,309 14,215,693 15,223,945 1,111,924
net of related debt
Unrestricted 2,683,399 530,612 254,564 3,468,575 3,071,083
Total net assets $ 3,352,342 869,921 14,470,257 18,692,520 4,183,007
130
Park
Equipment
Information
Equipment
Totals
Replacement
Technology
and Facility
2005
2004
Assets
Current assets:
Cash and investments
$ 2,683,698
489,593
253,314
3,426,605
3,084,392
Prepaid items
-
49,086
-
49,086
-
Interest receivable
13,802
2,842
1,250
17,894
11,643
Due from other governments
-
-
-
-
3,932
Capital assets, net
668,943
339,309
14,215,693
15,223,945
1,11I,924
Total assets
3,366,443
880,830
14,470,257
18,717,530
4,211,891
Liabilities
Current liabilities:
Accounts payable 14,101 6,885 - 20,986 28,884
Accrued salaries and benefits - 4,024 - 4,024 -
Total liabilities 14,101 10,909 - 25,010 28,884
Net Assets
Invested in capital assets, 668,943 339,309 14,215,693 15,223,945 1,111,924
net of related debt
Unrestricted 2,683,399 530,612 254,564 3,468,575 3,071,083
Total net assets $ 3,352,342 869,921 14,470,257 18,692,520 4,183,007
130
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Assets
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other operating expenses
Total operating expenses
Operating income (loss)
Year ended June 30, 2005
Park
Equipment Information Equipment
Replacement Technology and Facility
Totals
2005 2004
$ 325,069
406,111
250,000
981,180
694,960
325,069
406,111
250,000
981,180
694,960
15,213
20,737
-
71,734
-
71,734
51,862
42,473
-
-
42,473
33,390
116,565
-
-
116,565
138,406
14,007
95,949
-
109,956
124,037
-
89,564
-
89,564
120,098
172,610
101,238
350,722
624,570
305,834
27,223
66,770
-
93,993
-
372,878
425,255
350,722
1,148,855
773,627
47,809 (19,144) (100,722) 167,675) 78,667
Non-operating revenues (expenses):
Investment income 50,364
Gain (loss) on sale of capital assets (564)
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
11,394 4,564 66,322 58,469
9,065 - 8,501 -
49,800
20,459
4,564
74,823
58,469
1,991
1,315
(96,158)
(92,852)
(20,198)
15,213
20,737
14,566,415
14,602,365
346,750
17,204
22,052
14,470,257
14,509,513
326,552
3,335,138
847,869
-
4,183,007
3,856,455
$ 3,352,342
869,921
14,470,257
18,692,520
4,183,007
131
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Cash Flows
Year ended June 30, 2005
Cash flows from operating activities:
Cash received from other customers
Cash payments to suppliers for
goods and services
Cash payments to emplyees
Net cash provided by (used for)
operating activities
Cash flows from capital and related activities:
Insurance proceeds
Cash received from the sale of capital assets
Cash paid to acquire capital 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
Park
Equipment Information Equipment
Replacement Technology and Facility
Totals
2005 2004
$ 325,069
406,111
250,000
981,180
706,028
(189,066)
(316,537)
-
(505,603)
(375,765)
-
(67,710)
-
(67,710)
(51,862)
Increase (decrease) in accounts payable
11,202
4,024 -
15,226
(7,829)
136,003
21,864
250,000
407,867
278,401
operating activities $
136,003
21,864 250,000
407,867
278,401
3,091
15,203
-
18,294
-
350
-
-
350
-
(115,443)
(29,890)
-
(145,333)
(189,793
(112,002)
(14,687)
-
(126,689)
(189,793
47,365
10,356
3,314
61,035
46,826
47,365
10,356
3,314
61,035
46,826
71,366
17,533
253,314
342,213
135,434
2,612,332
472,060
-
3,084,392
2,948,958
$ 2,683,698
489,593
253,314
3,426,605
3,084,392
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
(47,809) (19,144) (100,722) (167,675) (78,667)
172,610 101,238 350,722 624,570 305,834
other governments
-
3,932 -
3,932
11,068
(Increase) decrease in prepaid items
(49,086) -
(49,086)
-
(Increase) decrease in other assets
-
(19,100) -
(19,100)
47,995
Increase (decrease) in accounts payable
11,202
4,024 -
15,226
(7,829)
Net cash provided by (used for)
operating activities $
136,003
21,864 250,000
407,867
278,401
Noncash capital, financing and investing activities:
Fixed asset disposals $
(45,545)
(19,951) -
(65,496)
(511,491)
Fixed assets contributed by other funds
15,213
20,737 14,566,415
14,602,365
346,750
132
AGENCYFUNDS
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 mond issues usocl to finance sewer improvements.
133
CITY OF LA QUINTA
Agency Funds
Combining Balance Sheet
June 30, 2005
Assessment
Assessment
Assessment
Assessment
District
District
District
District
No. 88-1
No. 89-2
No. 90-1
No. 91-1
Assets
Cash and investments
$ 92,159
58,715
108,996
127,511
Taxes receivable
1,021
100
1,951
4,681
Interest receivable
471
304
666
656
Total assets
$ 93,651
59,119
111,613
132,848
Liabilities
Deposits payable
Total liabilities
$ 93,651 59,119
$ 93,651 59,119
134
111,613
111,613
132,848
132,848
Assessment
Assessment
Assessment
1,253,941
District
District
District
Totals
No. 92-1
No. 97-1
No. 2000-1
2005 2004
304,888
126,104
403,573
1,221,946 1,982,134
943
3,450
13,683
25,829 -
1,496
612
1,961
6,166 6,973
x07,:27
130,166
419,217
1,253,941 1,989,107
307,327
130,166
419,217
1,253,941
1,989,107
307,327
130,166
419,217
1,253,941
1,989,107
135
Balance at
June 30, 2005
92,159
1,021
471
93,651
Deposits payable $ 90,637 3,189 (175) 93,651
ASSESSMENT DISTRICT NO. 89-2
Assets
Cash and investments
CITY OF LA QUINTA
57,128
Taxes receivable
Agency Funds
-
hiterest receivable
Combining Statement of Changes in Assets and
Liabilities
Total assets
Year ended June 30, 2005
57,306
Liabilities
Balance at
Deposits payable
June 30. 2004 Additions
Deletions
ASSESSMENT DISTRICT NO. 88-1
ASSESSMENT DISTRICT NO.
Assets
Assets
Cash and investments
$ 90,318 2,016
(175)
Taxes receivable
- 1,021
-
Interest receivable
319 471
(319)
Total assets
$ 90,637 3,508
(494)
Liabilities
263,229
Liabilities
Balance at
June 30, 2005
92,159
1,021
471
93,651
Deposits payable $ 90,637 3,189 (175) 93,651
ASSESSMENT DISTRICT NO. 89-2
Assets
Cash and investments
$
57,128
Taxes receivable
-
hiterest receivable
178
Total assets
$
57,306
Liabilities
Deposits payable
$
57,306
ASSESSMENT DISTRICT NO.
90-1
Assets
Cash and investments
$
262,280
Taxes receivable
-
Interest receivable
949
Total assets
$
263,229
Liabilities
Deposits payable
$
263,229
136
3,150 (1,563) 58,715
100 - 100
304 (178) 304
3,554 (1,741) 59,119
3,376 (1,563) 59,119
18,127 (171,411) 108,996
1,951 - 1,951
666 (949) 666
20,744 (172,360) 111,613
19,796 (171,412) 111,613
(Continued)
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
Balance at Balance at
Juice 30.2004 Additions Deletions June 30, 2605
ASSESSMENT DISTRICT NO. 9 1 -1
Assets
Cash and investments
$
560,846
252,399
(685,734)
127,511
Taxes receivable
-
4,681
-
4,681
Interest receivable
1,998
656
(1,998)
656
Total assets
$
562,844
257,736
687 732
132,848
Liabilities
Deposits payable
$
562,844
256,310
(686,306)
132,848
ASSESSMENT DISTRICT NO.
92-1
Assets
Cash and nivestments
$
385,734
216,471
(297,317)
304,888
Taxes receivable
-
943
943
Interest receivable
1,345
1,496
(1,345)
1,496
Total assets
$
387,079
218,910
(298,662)
307,327
Liabilities
Deposits payable
$
387,079
217,565
(297,317)
307,327
ASSESSMENT DISTRICT NO.
97-1
Assets
Cash and investinents
$
140,851
83,410
(98,157)
126,104
Taxes receivable
-
3,450
-
3,450
Interest receivable
506
612
(506)
612
Total assets
$
141,357
87,472
(98,663)
130,166
Liabilities
Deposits payable
$
141,357
86,966
(98,157)
_130,166
(Continued)
137
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
TOTALS -ALL AGENCY FUNDS
Assets
Balance at
1,221,946
June 30, 2044
ASSESSMENT DISTRICT NO. 2000-1
Assets
Taxes receivable
Cash and investments
$ 484,977
Taxes receivable
-
Interest receivable
1,678
Total assets
$ 486,655
Liabilities
(1,604,638)
Deposits payable
$ 486,655
TOTALS -ALL AGENCY FUNDS
Assets
(1,604,066)
1,221,946
Cash and investments
$
1,982,134
Taxes receivable
(6,973)
-
hiterest receivable
(1,611,039)
6,973
Total assets
$
1,989,107
Liabilities
(1,604,638)
1,253,941
Deposits payable
$
1,989,107
Total liabilities
$
1,989,107
138
Balance at
Additions Deletions June 30, 20105
268,305 (349,709) 403,573
13,683 - 13,683
1,961 (1,678) 1.961
283,949 (351,387) 419,217
282,270 349,708) 419,217
843,878
(1,604,066)
1,221,946
25,829
25,829
6,166
(6,973)
6,166
875,873
(1,611,039)
1,253,941
869,472
(1,604,638)
1,253,941
869,472
(1,604,638)
1,253,941
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
139
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental
Funds by Source I
June 30, 2005 and 2004
2005 2004
Governmental funds capital assets:
Land $ 53,670,027 73,505,659
Buildings and improvements 15,311,445 24,032,644
Equipment and furniture 1,555,329 718,801
Vehicles - 161,052
Infrastructure 345,559,519 330,958,870
Construction in progress 27,7942113 2727 932 823
Total governmental funds capital assets 443,896,433 457,309,849
Investment in general fixed assets by source:
Capital projects funds 390,946,913 388,021,434
Redevelopment agency 52,943,520 69,288,415
Total government funds capital assets J443,890,433 457,309 849
I 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.
140
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Function and Activity
June 30, 2005
141
Buildings and
Equipment
Construction
Land
Nprovements
and Furniture Vehicles
hifrastructure
in Progress
Totals
Function and Activity
General government:
City manager
$ 3,320,355
121,868
98,365 -
-
3,540,588
Economic development
-
-
10,208 -
-
10,208
Personnel
-
24,299
- -
-
-
24,299
Central services
-
-
45,878 _
-
-
45,878
City clerk
-
-
135,366 -
-
-
135,366
Total general government
31320,355
146,167
289,817 -
-
-
3,756,339
Public safety:
Police
-
-
105,109
-
105,109
Building and safety
administration
-
-
10,030 -
-
10,030
Emergency services
-
-
33,475 -
-
-
33,475
Fire
101,392
3,612,400
- -
3,713,792
Civic center building
operations
-
9,712,796
64,599 -
-
432,730
10,210,125
Total public safety
101,392
13,325,196
213,213 -
-
432,730
14,072,531
Community services:
Cormnunity services
administration
-
-
- -
1,779,478
1,769
1,781,247
Parks and recreation program
-
-
- -
-
7,804,171
7,804,171
Senior center
-
2,019,454
5,289 -
-
-
2,024,743
Library
-
-
- -
-
3,077
3,077
Total community services
-
2,019,454
5,289 -
1,779,478
7,809,017
11,613,238
Cormnunity development:
Community development
administration
-
-
48,025 -
-
-
48,025
Redevelopment agency
50,248,280
660,000
-
-
6,501,534
57,409,814
Total community
development
50,248,280
660,000
48,025 -
-
6,501,534
57,457,839
Public works:
Public works administration
-
-
5,374 -
-
-
5,374
Development and traffic
-
-
18,555 -
329,197,689
12,594,348
341,810,592
Street maintenance and
operations
-
5,200
22,618 -
2,028,035
4,352
2,060,205
Lighting and landscape
maintenance and operations
-
-
107,864 -
12,554,317
452,132
13,114,313
Total public works
-
5,200
154,411 -
343,780,041
13,050,832
356,990,484
Total governmental funds
capital assets
$ 53,670,027
16,156,017
710,755 -
345,559,519
27,794,113
443,890,431
'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.
141
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity'
June 30, 2005
Total public safety
Community services:
Community services administration
Parks and recreation program
Senior center
Library
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
Total public works
Total governmental funds capital assets
14,630,294 3,635,307 (4,193,070) 14,072,531
12,919,273 141,208 (11,279,234)
Governmental
1,995,997 5,808,174 -
Governmental
(14,440) 2,039,183 -
Funds Capital
- 3,077 -
Funds Capital
Assets
Assets
Function and Activity
July 1, 2004
Additions Deletions
June 30, 2005
General government:
City manager
$ 7,171,324
(3,630,736)
3,540,588
Economic development
10,208
- -
10,208
Personnel
24,299
- -
24,299
Central services
45,878
- -
45,878
City clerk
135,366
- -
135,366
Total general govermnent
7,387,075
- (3,630,736)
3,756,339
Public safety:
Police
105,109
-
105,109
Building and safety administration
10,030
- -
10,030
Emergency services
33,475
- -
33,475
Fire
3,851,937
3,635,307 (3,773,452)
3,713,792
Civic center building operations
10,629,743
- (419,618)
10,210,125
Total public safety
Community services:
Community services administration
Parks and recreation program
Senior center
Library
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
Total public works
Total governmental funds capital assets
14,630,294 3,635,307 (4,193,070) 14,072,531
12,919,273 141,208 (11,279,234)
1,781,247
1,995,997 5,808,174 -
7,804,171
(14,440) 2,039,183 -
2,024,743
- 3,077 -
3,077
14,900,830 7,991,642 (11,279,234) 11,613,238
48,025 - - 48,025
79,465,462 33,657,336 (55,712,984) 57,409,814
79,513,487 33,657,336 (55,712,984) 57,457,839
5,374 - - 5,374
320,621,592 21,189,000 - 341,810,592
7,784,181 - (5,723,976) 2,060,205
12,467,016 647,297 - 13,114,313
340,878,163 21,836,297 (5,723,976) 356,990,484
$ 457,309,849 67,120,582 (80,540,000) 443,890,431
'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 goverunental activities in the statement of net assets.
142
STATISTICAL SECTION
143
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 Developrnent Projects Total
1996
1,793,301
3,227,438
813,352
413,142
1997
2,376,935
3,442,056
889,694
469,110
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
2005
3,765,511
12,364,583
4,794,685
1,104,509
Source:
City of La Quinta
Audited Financial
Statements
144
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
862,890 -
22,892,178
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
Permits
Governmental
Services
Proceeds
Interest
Miscellaneous
Total
1996
5,393,456
998,030
815,980
610,873
12,386
905,420
230,705
8,966,850
1997
5,942,698
793,689
1,072,803
976,897
40,593
941,327
22,712
9,790,719
1998
6,764,355
1,144,562
1,110,553
1,228,269
281,382
1,164,145
114,969
11,808,235
1999
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
2005
16,762,028
3,226,167
7,552,035
3,402,602
3,238,808
513,030
34,694,670
(1)
1995 was the first year Litigation Settlement Proceeds was
identified as a revenue source
Source: City of La Quinta Audited Financial Statements
145
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
146
Percent of
Fiscal Year
Total
Current
Percent
Delinquent
Total
Ending
Tax
Tax
of Levy
Tax
Collections
June 30
Levy
Collection
Collected
Collections
to Tax Levy
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%
2005
$2,282,092
$2,119,641
92.9%
-
92.9%
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
146
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
Prope
Prope
Value
Exemptions
Exemptions
Value
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
2005
7,856,383,375
72,554,357
7,928,937,732
66,951,088
48,120,058
7,813,866,586
Source: County of Riverside
147
CITY OF LA QUINTA
Property Tax Rates - Direct and Overlapping Governments
Last Five Fiscal Years (per $100 of Assessed Value)
General
County of Riverside
Riverside County Office of Education
Desert Sands Unified
Coachella Valley Unified School District
Coachella Valley Water District
Coachella Valley Recreation & Park District
Desert Comm College District
Total Tax Rate
Source:
TABLE 5
2004105
2003104
2002/03
2001/02
2000/01
1.00000
1.00000
1.00000
1.00000
1.00000
0.00905
0.00905
0.00938
0.00985
-
0.01013
0.00905
0.00938
0.00985
-
0.20216
0.27443
0.46088
0.35177
0.09750
0.17094
0.09267
0.06845
0.05022
-
0.55329
0.55458
0.62057
0.56885
0.02080
0.08819
0.07762
0.07856
-
-
0.04948
-
-
-
-
2.08324 2.01740 2.24722 1.99054 1.11830
California Municipal Statistics, Inc
148
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 1
to Billings
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%
2005
457,277
413,679
90.5%
(1) Includes Prepayments and Foreclosures
Source: Muni Financial Services
149
CITY OF LA QUINTA
Schedule of Direct and Overlapping Bonded Debt
June 30, 2005
Direct and Overlapping Bonded 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.l
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
Desert Community College District
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.
ISO
TABLE 7
Percent
June 30, 2005
Annlicable
Bonded Debt
5.449
193,712
1.013%
$6,294,271
1.013%
123,738
7.720
1,139,858
7.720
1,726,578
100.000
2,105,000
7.720
10,574,084
7.286
694,356
75.236
4,909,149
5.449
193,712
17.094
3,135,894
17.094
3,027,224
86.247
2,108,739
8.819
235,026
100.000
6,575,000
100.000
2,720,000
4.948
3,482,248
$49,044,877 (1)
CITY OF LA QUINTA
Computation of Legal Debt Margin
June 30, 2005
Net Assessed Valuation
Debt Limit - 15 % of Assessed Valuation
Amount of Debt Applicable to Debt Limit
Legal Debt Margin
$7,813,866,586
1,172,079,988
-0-
$1,172,079,988
TABLE 8
Notes: Section 43605 of the Government Code of the State of California limits
the amount of indebtedness for public improvements to 15% of the assessed
valuation of all real and personal property of the City.
The City of La Quints has no general bonded indebtedness.
Source: City of La Quints
151
Fiscal Year
Ending
June 30
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Note:
Source:
CITY OF LA QUINTA
Revenue Bond Coverage
Local Agency Revenue Bonds (City Hall Project)
Last Ten Fiscal Years
Revenue Available
for Debt Service
696,402
607,950
734,623
684,573
679,670
678,955
682,178
679,435
680,830
681,220
Debt Service Requirements
Principal
Interest
Total
160,000
536,402
696,402
170,000
437,950
607,950
285,000
449,623
734,623
245,000
439,573
684,573
250,000
429,670
679,670
260,000
418,955
678,955
275,000
407,178
682,178
285,000
394,435
679,435
300,000
380,830
680,830
315,000
366,220
681,220
TABLE 9
Coverage
1.00
1.00
1.00
1.00
1.00
Revenue available consists of lease payments made by the City of La Quinta to
the La Quinta Financing Authority.
City of La Quinta
152
1.00
1.00
1.00
1.00
1.00
TABLE 10
CITY OF LA QUINTA
Demographic Statistics
Last Ten Fiscal Years
153
Total
City
Fiscal Year
Population
Riverside
Population
Ending
Square
Percent
County
Percent
June 30
Miles (1)
Population (2)
Change
Population (3)
Of County
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%
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%
2005
35.1
36,145
9.20%
1,871,950
1.9%
Source:
(1)
City of La
Quinta
(2)
State of California Department of Finance
(3)
Population Division, U.S. Census Bureau
153
Fiscal Year
Ending
June 30
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
(1)
Source:
CITY OF LA QUINTA
Property Value and Construction Activity
Property
"Value 1
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
7,856,383,375
Last Ten Fiscal Years
Commercial
Construction
Units
Value
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
120
26,262,862
From Schedule of Net Taxable Value
City of La Quinta
1S4
TABLE 11
Residential
Construction
Units
Value
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
1,838
311,189,301
TABLE 12
CITY OF LA QUINTA
Principal Taxpayers
June 30, 2005
Taxpayer Type of Activity
KSL Desert Resort Inc Commercial/Hotel/Vacant Land
Toll California Vacant Land
Sunrise Desert Partners Condominiums/Vacant Land
TD Desert Development Residential
ND La Quinta Partners Vacant Land
Lennar Homes of California Inc Vacant Land
Coral Mountain Vacant Land
Quarry Ranch At La Quinta Inc Vacant Land
Aventine Development Residential
CRV La Quinta 70 Ltd Partnership Vacant Land
Source: City of La Quinta
155
TABLE 13
CITY OF LA QUINTA
Major Employers
June 30, 2005
Employer
Employees
Activi
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 Quints
1S6
TABLE 14
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2005
Company Name
Policy Number
Coveraixe
Limits
Term
Premium
Hartford
PEBAO7068
Employee Dishonesty,
$1,000,000
12/03/04 - 05
$3,000
Forgery, Computer Fraud
Lexington
062-3314
All Risk Property Insurance
32,600,000
07/01/05 - 06
30,000
Including Auto Physical Damage
(Excluding Earthquake)
Landmark Amer
K2HQ407478
Earthquake & Flood
7,500,000
02/07/05 - 06
29,500
Real & Personal Property
Including Contigent Tax Interruption
California
Certificate #5
Comprehensive General
$0 Deductible Retention
07/01/05 - 06
253,672
Joint Powers
Liability
$50 Million
Insurace Authority
California
Certificate
Worker's Compensation
5,000,000
07/01/05 - 06
235,397
Joint Powers
#5009-056
Insurance Authority
Source: City of La Quinta
157
Source
TABLE 15
CITY OF LA QUINTA
Miscellaneous Statistical Data
June 30, 2005
Date of Incorporation ................................May
2, 1982
Type of City
.............. Charter City
Form of Government
...........Council./ Manager
City Employees ..................................
83
City Land Area (square miles) ...................
. ... . ............ 35.1
Population .................................
36,145
Number of Parks ...........................
. ...... 12
Total Acreage ..................................
234
Miles of Streets ................................. 118.0
Miles of Bike Paths .......... 9.7
Number of Major Intersections ............................ . ..... 46
Number of Traffic Signals and Safety Lighting .... . ....... . ..... . . . .. 43
Number of Traffic Signs ............ ...................... 2,749
Number of Street Lights .................................. 73
Public Schools ........ ..........................
Private Schools ..................................
Churches
Banks / Savings and Loan
Number of Single Family Units - Detached ......................... .
Number of Single Family Units - Attached ..................... . ... .
Number of Multiple Family Units ... . . . ......................... .
Number of Mobile Homes ...... I ................ . .. . . . . .
City of La Quinta
158
4
1
3
7
14,393
2,360
1,352
259
TABLE 16
CITY OF LA QUINTA
General Fund Balance Trends
Last Ten Fiscal Years
Fiscal Year
Ending
Reserved
Unreserved
Totals
June 30
Designated Undesi _ sated
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
2005
32,412,590
31,514,377 -
63,926,967
Source:
City of La Quinta
159
(This page intentionally left blank)
160