2005-2006 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)N
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� La Quinta, California
Comprehensive Annual Financial Report
Year Ended June 36, 2006
CITY OF LA QUINTA
La Quinta, California
Comprehensive Annual Financial Report
Year ended June 30, 2006
Prepared by
FINANCE DEPARTMENT
JOHN M. FALCONER
Director of Finance
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CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2006
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i
List of Principal Officials vii
Organizational Chart viii
Certificate of Award for Outstanding Financial Reporting (CSMFO) ix
Certificate of Achievement for Excellence in Financial Reporting (GFOA) x
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, 2006
'TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION, (Continued)
Notes to the Basic Financial Statements 31
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedules:
General Fund 78
Notes to Required Supplementary Information 80
SUPPLEMENTARY SCHEDULES:
Non -Major Governmental Funds:
Combining Balance Sheet
82
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
83
Non -Major Special Revenue Funds:
Combining Balance Sheet
86
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
88
Budgetary Comparison Schedules:
State Gas Tax Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
90
Library Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 91
Federal Assistance Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 92
State Law Enforcement Block Grant (SLEBG) Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual 93
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2006
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION. (Continued
Indian Gaming Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
94
Lighting and Landscape Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
95
Riverside County Transportation Commission (ROTC) Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
96
Quimby Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
97
Public Safety Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
98
Arts in Public Place Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
99
South Coast Air Quality Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
100
AB 939 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
101
Low/Moderate Income Housing Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
102
Low/Moderate Income Housing Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
103
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2006
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
106
Redevelopment Agency Project Area No. 2 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
107
Financing Authority Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
108
Major and Non -Major Capital Projects Funds:
Combining Balance Sheet
110
Combining Statement of Revenues, Expenditures
and Changes in Fund Balance
112
Budgetary Comparison Schedules:
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
114
Redevelopment Agency Project Area No. 1 Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
115
2004 Low/Moderate Income Bond Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
116
Infrastructure Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
117
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2006
TABLE OF CONTENTS, (Continued)
Page
FINANCIAL SECTION. (Continued
Transportation Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
118
Parks and Recreation Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
119
Civic Center Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
120
Library Development Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
121
County Library Development Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
122
Community Center Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
123
Street Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
124
Park Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
125
Fire Facility Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
126
Assessment District 2000-1 Phase VI Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
127
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2006
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
128
Financing Authority Capital Projects Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balances — Budget and Actual
129
Internal Service Funds:
Combining Statement of Net Assets
131
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance
132
Combining Statement of Cash Flows
133
Agency Funds:
Combining Balance Sheet
136
Statement of Changes in Assets and Liabilities
138
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source
142
Schedule by Function and Activity
143
Schedule of Changes by Function and Activity
144
CITY OF LA QUINTA
Comprehensive Annual Financial Report
Year ended June 30, 2006
TABLE OF CONTENTS Continued
Table No.
Page
STATISTICAL SECTION
Net Assets by Component
1
146
Changes in Net Assets
2
147
Changes in Net Assets — Governmental Activities
3
148
Changes in Net Assets — Business -type Activities
4
149
Fund Balances of Governmental Funds
5
150
Changes in Fund Balances of Governmental Funds
6
151
Assessed Value and Estimated Actual Value of Taxable Property
7
152
Assessed Value and Estimated Actual Value of Taxable Property —
Redevelopment Agency
8
153
Direct and Overlapping Property Tax Rates
9
154
Principal Property Taxpayers
10
155
Property Tax Levies and Collections
11
156
Ratios of Outstanding Debt by Type
12
157
Ratio of General Bonded Debt Outstanding
13
158
Direct and Overlapping Debt
14
159
Legal Debt Margin Information
15
160
Pledged -Revenue Coverage
16
161
Demographic and Economic Statistics
17
162
Principal Employers
18
163
Full-time City employees
19
164
Operating Indicators
20
165
Capital Asset Statistics
21
166
Schedule of Insurance in Force
22
167
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Ti 4 4 A�p
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALL.E TAMPICO (760) 777-7000
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
August 18, 2006
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, 2006. 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 of
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.
Mayer Hoffman McCann P.C. Certified Public Accountants, have issued an
unqualified opinion on the City of La Quinta financial statements for the year ended
June 30, 2006. The independent auditor's report is located at the front of the
financial section of this report.
Management's discussion and analysis (MD&A)
independent auditor's report and provides a narrative
analysis of the basic financial statements. The MD&
transmittal and should be read in conjunction with it.
i
immediately follows the
introduction, overview, and
A complements the letter of
0
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. 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.
ii
Local economy
According to the State of California Economic Development Department (EDD), as
of July 2006, the total workforce for the City of La Quinta was 14,500 of which
14,100 were employed for a 2.6% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.3% and the statewide
unemployment rate of 4.8%.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.19 billion in FY 96/97 to $10.07 billion or
over 460%. 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 1 1 1 corridor.
New commercial development includes the recent opening of the following retailers
in alphabetical order: 99¢ Only Store, Bed Bath and Beyond, Blend Restaurants,
Best Buy, Lamp Post Pizza, Legacy Furniture, Okura, Smart & Final, Thai Smile and
Trader Joes. These compliment the Home Depot, Lowes, Wal-Mart, and Target
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 late 2006. 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, and the Cliff House.
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, Home Depot, Wal-Mart, Rancho La Quinta, and
Lowe's.
During the past ten years, the City of La Quinta general fund expenditures have
increased 317%. Departments that have exceeded the average include Public
Works (567%), and Public Safety (378%). In the case of Public Works, much of
the increase can be attributed to increases in street, landscape and park
maintenance costs. 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 385%. Sources that exceeded the average include intergovernmental
(609%),and interest earnings (437%). 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 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.
iii
Long-term financialtannin
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 twenty (20) years, with an estimated
population of 85,940 versus the current 38,340, the annual revenues into the
General Fund will be $30 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) 05/06, the General Fund balance increased by $12.3 million
consisting of revenue increases in each category: taxes, license and permit fees,
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, 2006 was $76.3 million of which $23.2
million was reserved and $53.1 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 -
iv
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 $67.3 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 05/06 with a similar amount in FY 04/05 to meet the State
budget crisis. Also, since FY 02/03 through FY 05/06, the La Quinta
Redevelopment Agency has contributed $7.8 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 05/06
was $2.9 million and it is anticipated that no additional contribution will be made in
FY 06/07. The $7.8 million of funds that have been diverted to the State will not
be available for use within the City of La Quinta.
Major Initiatives
The City has been working with the Coachella Valley Association of Governments
on a multi-year project to acquire 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
v
Channel, which will provide an all-weather crossing. The low-water crossing at
Jefferson Street and the Whitewater Channel, which has been washed out several
times from winter rains that hit the region, will be eliminated once the project is
completed.
The La Quinta Financing Authority has 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 has 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.
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,
2005. This was the ninth 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 finances.
Respectfully submitted,
Thomas P. Genovese John M. Falconer
City Manager Finance Director
Vi
City of La Qu.iata
Directory of Officials
June 30, 2006
CITY COUNCIL
Don Adolph, Mayor
Stanley Sniff, Mayor Pro Tem
Terry Henderson, Council Member
Lee Osborne, Council Member
Tom Kirk, Council Member
ADMINISTRATION
Thomas P. Genovese, City Manager
Michael O'Connor, Assistant City Manager
John M. Falconer, Finance Director
Tom Hartung, Building & Safety Director
Doug Evans, Community Development Director
Kathy Jenson, City Attorney
Edie Hylton, Community Services Director
June Greek, City Clerk
Tim Jonasson, Public Works Director/City Engineer
vii
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ix
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, 2005
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.
ce
STA
M President
SUL
CNJU94
*1-/oe'�0''
Executive Director
x
Mayer Hoffman McCann RC.
An Independent CPA Firm
Conrad Government Services Division
2301 Dupont Drive, Suite 200
Irvine, California 92612
949-474-2020 ph
949-263-5520 fx
www.mhm-pc.com
The Honorable Mayor and City Council
City of La Quinta
La Quinta, California
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities, 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, 2006, 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. The prior year summarized comparative financial information has been derived from the
City's 2005 financial statements which were audited by Conrad and Associates, L.L.P., who
merged with Mayer Hoffman McCann, PC as of January 1, 2006, and whose report dated August
18, 2005 expressed unqualified opinions on the respective financial statements of the
governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information.
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 perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of La Quinta, California,
as of June 30, 2006, and the respective changes in financial position and cash flows, where
applicable, of the City of La Quinta, California 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.
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 nonmajor fund financial statements and statistical schedules listed in
the table of contents are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The combining and individual nonmajor fund financial
statements have been subjected to the auditing procedures applied in the audit of the basic
financial statements, and in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The introductory section and statistical tables have
not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
In accordance with Government Auditing Standards, we have also issued a report dated August
18, 2006 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.
Irvine, California
August 18, 2006
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, 2006. 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 $445,258,000 (net assets). Of this amount,
$84,345,000 (unrestricted net assets) may be used to meet the government's
ongoing obligations to citizens and creditors.
• The government's total net assets increased by $67,705,000 with a decrease of
$265,000 attributable to the 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 $215,498,000, an increase of
$37,956,000 in comparison with the prior year. Approximately 20 percent of this
total amount, $43,714,000, 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 $15,197,000 or 50 percent of total general fund budgeted
expenditures.
* The City of La Quinta's total debt decreased by $4,108,000 during the current
fiscal year from $251,520,000 to $247,412,000 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 of 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 four (34) 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 seven (27) 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
5
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.
2
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 $445,258,000 at the close of the most recent fiscal year, which is
$67,440,000 greater than the previous year.
The largest portion of the City of La Quinta's net assets (66 percent versus 73
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
Governmental activities
Business -type activities
Total
2006
2005
2006
2005
2006
2005
Current and other assets $ 241,756,724 $
204,173,979$
(1,152,519)5
(270,691) $
240,604,205 $
203,903,288
Capital assets 420,791,784
397,555,192
43,165,774
42,102,263
463,957,558
439,657,455
Total assets 662,548,508
601,729,171
42,013,255
41,831,572
704,561,763
643,560,743
Current liaWlities 11,377,874 13,866,654 513,127 355,967 11,891,001 14,222,621
Non-current liabilities 246,321,774 250,718,460 1,090,602 801,417 247,412,376 251,519,877
Total liabilities 257,699,648 264,585,114 1,603,729 1,157,384 259,303,377 265,742,498
Net assets:
Invested in capital assets,
net of related debt
253,552,1171
Z2
42.07Z.17Z4 75
Restricted
65,278,776
43,421,857
65,278,776 43,421,857
Unrestricted
86,010,967
60,361,071
(1,665,646) (626,658) 84,345,321 59,734,413
Total net assets
$ 404,848,860 $
337,144,057 $
40,409,526$ 40,674,188 $ 445,258,386 $ 377,818,245
An additional portion of the City of La Quinta's net assets 0 5 percent versus 11
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 - $84,345,000 (19 percent) 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 $1,666,000.
7
Governmental activities
Governmental activities increased net assets by $67,705,000 accounting for a 20
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
Govenenertel Business -type
activities activities Tote}
Revante= 2[X76 2006 Chanoa 2006 2005 Chane 2006 2005 Charms
• Revenues increased by $31,627,000 with the two largest category increases in
capital grants and contributions ($15,327,000) and other taxes ($11,964,000).
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 other taxes change stemmed from increasing
property, sales tax, transient occupancy taxes, document transfer tax and franchise
tax categories.
• Expenditures increased by $2,744,000 with the two largest category increases in
Public Works ($905,000) and General Government ($634,000). The increase in the
Public Works costs is a result of higher street lighting and landscaping and park
landscaping expenditures. The increase in the General Government category is the
first of four (4) contributions of $250,000 made to the California State University
San Bernardino — Palm Desert Campus and greater general liability premiums.
L
* A transfer out of $1,137,000 in assets from the governmental activities to the
business -type activities which consist of land and improvements for the SilverRock
Golf course.
35,000,000
30,000,000
25,000,000
20,000,000
16,000,000
10,000,000
5,000,000
5,000,000
4,600,000
4,000,000
3,600,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Expenses and Program Revenues - Government Activities
29,263,333
Public vgrks Interest expense
Expenses and Program Revenues - Business -type Activities
Golf
�9
• Expenses
• Program revenues
9,065,244 9,116,200
5,906,915
4,229,671
17,649
4,
75,988
1,425,0
Q
jIII 4�jk 5�7,7I`6
General
Public safety Community
Planning and
government
services
development
29,263,333
Public vgrks Interest expense
Expenses and Program Revenues - Business -type Activities
Golf
�9
• Expenses
• Program revenues
Business -type activities
This was the first full year of operations for the SilverRock Golf fund since the
golf course began early operation in 2005.
Net assets decreased by $ (265,000) from the net effects of a transfer of
assets from the governmental activities of $1,137,000 and an operating loss
of $(1,402,000).
Charges for services primarily consisted of green fees and totaled $3,121,000
with golf course expenses of $4,523,000.
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 $215,498,000, an increase of
$37,956,000 in comparison with the prior year. Approximately 45 percent of this
total amount ($96,772,000) constitutes unreserved, which is available for spending
at the government's discretion. The remainder of fund balance ($118,726,000) 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 ($9,550,000), 2) to pay for
bond -related capital improvement projects ($78,480,000), 3) to advance funds to
other funds ($28,066,000), or 4) for a variety of other restricted purposes
($2,630,000).
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
$53,059,000, while total fund balance reached $76,269,000. 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 251 percent
of the total budgeted expenditures.
The City of La Quinta's general fund balance increased by $12,342,000 during the
current fiscal year. Key factors in this growth are as follows:
10
An increase of $3,279,000 in taxes over the final budget, of which $980,200 was
in property taxes, $644,200 was in sales taxes (1 percent of the 7.75 percent
collected going to the City), and $997,800 was in transient occupancy taxes with
the balance in other taxes.
. An increase of $2,725,000 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.
• An increase of $1,965,000 in licenses and permits over the final budget, which
represents increased development and building activity in the Building and Safety
department.
• An increase of $1,368,000 in interest income over the budget, which is a result of
higher than budgeted interest rates and larger amounts under investment.
Actual expenditures were $5,727,000 less than the final budget. Divisions that
were under budget for the year were Police ($1,570,000), Fire ($998,000) and
Library ($611,000).
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 $7,974,000 during the current fiscal year. The key
factor in this growth was the sale of property at State Highway 1 1 1 and Dune Palms
Road that generated $6,292,000 for the fund. The remaining increase was a result
of increased tax increment property taxes generated in the Redevelopment Project
Area.
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 $5,357,000 during the current fiscal year. The key
factor in this decrease was the funding of $3,193,000 for the SilverRock project and
$2,100,000 for the Eisenhower Drive Bridge project.
11
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 $2,445,000 increase in appropriations and transfers out
between the original ($27,986,000) and final amended budget ($32,474,000).
Following are the main components of the increase:
• $225,000 supplemental appropriation to the building and safety division for
additional building plan check and inspection services;
• $550,000 supplemental appropriation to the street maintenance division for slurry
seal road improvements; and,
• $300,000 supplemental appropriation to the development and traffic division for
additional plan check and contract inspection services.
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, 2006, amounts to $463,958,000 (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 decreased slightly
this fiscal year from the sale of properties and from depreciation expenses
exceeding new purchases.
12
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
Major capital asset events during the current fiscal year included the following:
Governmental activities
• Recording the new La Quinta library building, and equipment, which totaled
$8,135,000;
• Recording the land, park buildings and equipment in the park equipment and
facility internal service fund, which totaled $1,007,000;
Recording infrastructure improvements, including developer dedications of
$12,479,000, to street improvements, street right of way, street sidewalks and
curbs and gutters, and street median, which total $23,472,000;
• Recording the sale of land parcels in the Redevelopment Agency, which had a
cost basis of $6,598,000. A parcel at State Highway 111 and Dune Palms Road
was sold with a cost basis of $5,800,000; and,
• Recording the transfer of assets, which was primarily land from the
Redevelopment Agency to the SilverRock Golf Enterprise Fund had a cost basis of
$973,000.
Business -type activities
• Recording improvements to the golf course, temporary clubhouse, and the
maintenance building for the first golf course at SilverRock Resort totaled
$973,000 and two (2) leases for golf carts and geographic positioning system
(GPS) equipment totaled $608,000.
Additional information on the City of La Quinta's capital assets can be found in
Footnote 5 to the financial statements.
13
Long-term debt
At the end of the current fiscal year, the City of La Quinta had total bonded debt
outstanding of $246,323,000. $144,045,000 of this debt amount represents bonds
secured solely by specified revenue sources (i.e., tax allocation bonds); while,
$93,528,000 of the debt represents revenue bonds that will be paid from pledged
tax increment property tax housing funds. In addition, $1,091,000 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 outstanding debt decreased by $4,107,000 during the
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.
14
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta's budget for the
2007 fiscal year:
The City of La Quinta had a 2.76 percent unemployment rate. This rate is
significantly lower than the Riverside County unemployment rate of 5.3 percent
and the statewide unemployment rate of 4.8 percent.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.19 billion in FY 96/97 to $10.07 billion or
over 460 percent.
9 During the current fiscal year, the general fund net income was $12,342,000.
$1,320,000 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 06/07..
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 financial information should be addressed to the City of La Quinta, John
Falconer, Finance Director, P.O. Box 1504, La Quinta, CA, 92247.
15
BASIC FINANCIAL STATEMENTS
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 governments
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, 2006
Governmental Business -type
Activities Activities
$ 138,539,117 68,702
Totals
2006 2005
138,607,819 97,186,820
78,480,841
-
78,480,841
85,975,369
212,966
11,907
224,873
235,897
1,574,654
-
1,574,654
787,752
317,955
1,865
319,820
557,017
712,629
139
712,768
669,888
12,974,945
-
12,974,945
12,858,098
1,576,635
(1,576,635)
-
-
7,116,681
-
7,116,681
5,259,127
250,301
250,000
500,301
251,110
-
91,503
91,503
122,210
53,943,514
35,603,648
89,547,162
92,704,958
255,685,006
-
255,685,006
246,299,394
26,827,331
-
26,827,331
27,794,113
84,335,933
7,562,126
91,898,059
72,858,990
662,548,508 42,013,255 704,561,763 643,560,743
3,189,246
456,495
3,645,741
4,282,021
565,677
13,617
579,294
444,430
4,321,360
-
4,321,360
4,381,316
-
18,015
18,015
10,800
1,912,664
25,000
1,937,664
2,940,411
481,535
-
481,535
2,158,731
907,392
-
907,392
4,912
5,883,046
335,520
6,218,566
5,103,723
240,438,728
755,082
241,193,810
246,416,154
257,699,648
1,603,729
259,303,377
265,742,498
253,559,117
42,075,172
295,634,289
274,661,975
Public safety
4,208,575
- 4,208,575
Community services
2,135,109
- 2,135,109
Planning and development
37,305,763
- 37,305,763
Public works
21,629,329
- 21,629,329
Unrestricted
86,010,967
(1,665,646) 84,345,321
Total net assets
$ 404,848,860
40,409,526 445,258,386
See accompanying notes to the basic financial statements.
17
2,845,076
868,545
28,980,144
10,728,092
59,734,413
377,818,245
Governmental activities:
General government
Public safety
Community services
Planning and
development
Public works
Interest expense
Total governmental activities
Business -type activities:
Golf course
Total
CITY OF LA QUINTA
Statement of Activities
Year ended June 30, 2006
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
$ 4,229,871 717,849 - -
9,065,244 4,168,206 297,197 11,585
1,426,033 428,947 2,191,282 6,495,971
5,906,915 1,873,676 14,440 2,269,645
10,006,335 3,021,379 1,100,254 25,141,700
15,494,656 - -
46,129,054 10,210,057 3,603,173 33,918,901
4,523,146 3,120,728
$ 50,652,200 13,330,785
General revenues:
Taxes:
Property taxes
Tax increment
Sales taxes
Transient occupancy taxes
Franchise taxes
Other taxes
Investment income
Motor vehicle in lieu, unrestricted
Gain on sale of capital assets
Miscellaneous revenues
Transfers
3,603,173 33,918,901
Total general revenues and transfers
Change in net assets
Net assets at beginning of year
Net assets at end of year
See accompanying notes to the basic financial statements.
In
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activities
(3,512,022) -
(4,588,256) -
7,690,167 -
(1,749,154) -
19,256,998 -
(15,494,656) -
1,603,077 -
- (1,402,418)
1,603,077 (1,402,418)
3,679,079
-
35,168,329
-
7,613,075
-
5,437,238
-
1,044,470
-
1,326,618
-
6,319,502
553
2,740,233
-
1,967,292
-
1,943,093
-
(1,137,203)
1,137,203
66,101,726
1,137,756
67,704,803
(264,662)
337,144,057
40,674,188
$ 404,848,860
40,409,526
Totals
2006 2005
(3,512,022)
(3,150,243)
(4,588,256)
(3,793,806)
7,690,167
1,872,989
(1,749,154) (3,752,843)
19,256,998 9,938,081
(15,494,656) (15,265,051)
1,603,077 (14,150,873)
(1,402,418) (785,455)
200,659 (14,936,328)
3,679,079
2,579,245
35,168,329
24,443,112
7,613,075
6,773,566
5,437,238
4,831,338
1,044,470
1,185,087
1,326,618
1,392,795
6,320,055
4,336,050
2,740,233
2,453,642
1,967,292
3,717,470
1,943,093
2,397,474
67,239,482 54,109,779
67,440,141
39,173,451
377,818,245
338,644,794
445,258,386
377,818,245
WE
CITY OF LA QUINTA
Governmental Funds - Balance Sheet
June 30, 2006
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 (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
General
$ 54,307,060
10,553
1,574,654
503,642
361,169
1,114,793
4,395,992
22,700,961
5,903
$ 84,974,727
$ 2,240,044
563,345
4,116,113
1,733,297
19,877
32,927
8,705,603
Redevelopment
Agency -
PA No. 1
21,154,515
427
81,502
611,633
21,848,077
298,173
12,000,000
12,298,173
Debt Service Funds
Redevelopment
Agency -
PA No. 2
9,082,604
18
50,531
1,765,531
412,607
11,311,291
576,292
10,000,000
10,576,292
Financing
Authority
3,299
292
89,265,000
89,268,591
89,265,000
89,265,000
9,549,904 - -
503,642 - - -
22,700,961 - - -
5,903 - -
53,058,618 - - -
734,999 3,591
76,269,124 9,549,904 734,999 3,591
$ 84,974,727 21,848,077 11,311,291 89,268,591
See accompanying notes to the basic financial statements.
20
21
Capital Projects Funds
Redevelopment
Other
Capital
Agency -
2004
Governmental
Totals
Improvement
PA No. 1
Low/Mod Bond
Funds
2006
2005
1,375,066
928,957
-
47,606,002
134,457,503
93,760,215
-
19,864,230
58,615,630
244
78,480,841
85,975,369
108
-
-
202,305
212,966
191,200
-
-
-
-
1,574,654
787,752
2,488
-
5,499
511,629
507,931
-
1,889
-
199,336
694,427
651,994
-
-
-
12,974,945
102,239,945
102,858,098
-
-
-
2,880,324
3,894,522
-
-
-
1,696,449
7,116,681
5,259,127
4,385,127
-
979,970
28,066,058
38,965,686
-
-
-
-
5,903
1,110
1,375,174
25,182,691
58,615,630
63,664,750
356,240,931
332,853,004
694,138
97,757
3,178
142,091
3,177,208
3,944,055
-
-
-
-
563,345
437,219
87,500
-
10,862,348
104,330,961
103,678,482
131,878
-
-
47,489
1,912,664
2,915,411
461,658
-
-
-
481,535
2,158,731
-
-
-
907,392
4,912
-
1,765,531
239,119
2,004,650
3,588,863
-
-
-
5,365,097
27,365,097
38,583,747
1,375,174
97,757
1,768,709
16,656,144
140,742,852
155,311,420
-
-
-
9,549,904
4,601,741
-
19,864,230
58,615,630
-
78,479,860
85,970,111
-
2,488
-
5,499
511,629
507,931
-
2,112,597
2,112,597
2,117,873
-
4,385,127
-
979,970
28,066,058
38,965,686
-
-
-
-
5,903
1,110
-
-
-
-
53,058,618
31,514,377
-
-
-
36,475,093
36,475,093
19,267,394
-
-
-
738,590
(7,236,054)
-
833,089
(1,768,709)
7,435,447
6,499,827
1,831,415
-
25,084,934
56,846,921
47,008,606
215,498,079
177,541,584
1,375,174
25,182,691
58,615,630
63,664,750
356,240,931
332,853,004
21
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Pia
CITY OF LA QUINTA
Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2006
Fund balances of governmental funds $ 215,498,079
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 255,685,006
Other capital assets 213,988,832
Accumulated depreciation (65,017,273)
Long-term debt and compensated absences that have not been included
in the governmental fund activity:
Bonds payable (237,572,540)
Compensated absences (608,266)
Other long-term liabilities (8,140,968)
Accrued interest payable for the current portion of interest due on
bonds payable has not been reported in the governmental funds. (4,321,360)
Revenues that are measurable but not available. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting. 15,065,961
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 20,271,389
Net assets of governmental activities $ 404,848,860
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, 2006
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
Payments under pass-through
obligations
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
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 at end of year
4,426,484 - - 11,015
13,029,187 - -
1,248,308 - -
955,569 300,248 154,439
5,044,896 - - -
24,704,444
3,340,636
8,930,643
19,209,927
31,781,454
200,000
1,524,272
16,748,364
18,627,075
12,966,834
5,377,098
Debt Service Funds
360,206
Redevelopment
Redevelopment
(984,883)
(4,374,737)
Agency -
Agency -
Financing
General
PA No. 1
PA No. 2
Authority
$ 19,259,829
36,506,201
19,849,893
-
5,145,430
-
-
-
2,180,058
-
-
-
6,530,777
-
-
-
4,115,872
652,351
459,695
231
123,500
-
-
680,575
315,812
-
-
11,015
37,671,278
37,158,552
20,309,588
691,821
4,426,484 - - 11,015
13,029,187 - -
1,248,308 - -
955,569 300,248 154,439
5,044,896 - - -
24,704,444
3,340,636
8,930,643
19,209,927
31,781,454
200,000
1,524,272
16,748,364
18,627,075
12,966,834
5,377,098
1,682,513
360,206
3,945,802
7,998,654
(984,883)
(4,374,737)
(1,706,754)
(624,677)
(428,935)
6,291,900
12,342,157
4,948,163
7,974,413
63,926,967
4,601,741
(7,239,414)
$ 76,269,124
9,549,904
734,999
See accompanying notes to the basic financial statements.
24
1,065,000
4,787,556
5,863,571
(5,171,750)
5,171,981
5,171,981
231
3,360
3,591
25
Ca ital Pro'ects Funds
Redevelopment
Other
Capital
Agency -
2004
Governmental
Totals
Improvement
PA No. 1
Low/Mod Bond
Funds
2006
2005
-
-
-
14,089,024
89,704,947
68,175,347
-
-
-
-
5,145,430
3,226,167
-
-
-
1,187,931
3,367,989
3,402,602
108
-
-
12,473,332
12,473,440
6,091,156
8,255,422
-
-
3,799,269
18,585,468
10,242,876
-
1,038,028
2,246,441
1,433,594
9,946,212
6,215,291
-
-
-
818,526
818,526
825,292
-
-
-
299,525
1,103,600
1,201,463
-
-
1,621,850
1,621,850
2,381,602
-
-
-
310,227
637,054
528,903
8,255,530
1,038,028
2,246,441
36,033,278
143,404,516
102,290,699
-
-
-
207,455
4,644,954
3,970,921
-
-
-
-
13,029,187
12,364,583
-
-
-
1,248,308
1,104,509
i
666,017
720,227
3,051,063
5,847,563
5,719,373
-
-
-
1,942,118
6,987,014
6,206,769
25,407,673
-
-
37,877
25,445,550
40,012,387
172,112
-
-
-
4,777,748
3,793,660
76,342
-
-
235,799
15,554,612
14,355,577
-
-
-
35,958,291
25,756,321
25,656,127
666,017
720,227
5,474,312
113,493,227
113,284,100
(17,400,597)
372,011
1,526,214
30,558,966
29,911,289
(10,993,401)
17,412,465
913,378
-
25,849
35,828,335
49,248,081
(11,868)
(6,642,051)
(2,773,994)
(19,498,238)
(35,992,525)
(49,248,081)
-
-
-
8,209,396
8,209,396
8,566,295
17,400,597
(5,728,673)
(2,773,994)
(11,262,993)
8,045,206
8,566,295
-
(5,356,662)
(1,247,780)
19,295,973
37,956,495
(2,427,106)
-
30,441,596
58,094,701
27,712,633
177,541,584
179,968,690
-
25,084,934
56,846,921
47,008,606
215,498,079
177,541,584
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, 2006
Net changes in fund balances - total governmental funds
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
Capital assets donated to other funds
Depreciation
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net assets.
The statement of net assets includes accrued interest on long term debt.
To record as an expense the net change in compensated absences in the
statement of activities.
Revenues that are measurable but not available. Amounts are not recorded
as revenue under the modified accrual basis of accounting.
$ 37,956,495
27,500,418
(973,013)
(4,202,088)
4,455,924
59,956
(59,238)
1,387,480
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. 1,578,869
Change in net assets of governmental activities
$ 67,704,803
See accompanying notes to the basic financial statements.
26
CITY OF LA QUINTA
Proprietary Funds
Statement of Net Assets
June 30, 2006
Assets
Current assets:
Cash and investments
Accounts receivable
Prepaid items
Interest receivable
Total current assets
Noncurrent assets:
Deposits
Inventory
Capital assets, net
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and benefits
Deferred revenue
Deposits payable
Due to other funds (note 19)
Advances from other funds (note 19)
Current portion of long-term liabilities
Total current liabilities
Noncurrent liabilities:
Long-term liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets,
net of related debt
Unrestricted
Total net assets
Business Type
Governmental
Actvities
Activities -
Enterprise Fund
Internal
Golf Course
Service Funds
$ 68,702
4,081,614
11,907
-
1,865
50,724
139
18,202
82,613
4,150,540
250,000
91,503 -
43,165,774 16,135,219
43,507,277 16,135,219
43,589,890 20,285,759
456,495 12,038
13,617 2,332
18,015 -
25,000 -
875,674 -
700,961 -
335,520 -
2,425,282 14,370
755,082 -
755,082
3,180,364 14,370
42,075,172
16,135,219
(1,665,646)
4,136,170
$ 40,409,526
20,271,389
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, 2006
Business Type
Actvities
Ente rise Fund
Golf Course
Operating revenues:
Governmental
Activities -
Internal
Service Funds
Charges for services
$ 3,120,728
1,007,330
Total operating revenues
3,120,728
1,007,330
Operating expenses:
-
Salaries and benefits
62,829
79,468
Fuel and oil
-
64,210
Maintenance and parts
-
121,231
Contract services
3,882,264
41,833
Software and supplies
-
97,300
Depreciation
517,833
616,106
Other operating expenses
60,220
30,363
Total operating expenses
4,523,146
1,050,511
Operating income (loss)
(1,402,418)
(43,181)
Non-operating revenues (expenses):
Investment income
553
140,406
Gain (loss) on sale of capital assets
-
6,269
Total non-operating
revenues (expenses) 553 146,675
Income (loss) before transfers
and capital contributions (1,401,865) 103,494
Transfers in 164,190 -
Capital contributions 973.013 1,475,375
Changes in net assets (264,662) 1,578,869
Net assets at beginning of year 40,674,188 18,692,520
Net assets at end of year $ 40,409,526 20,271,389
See accompanying notes to the basic financial statements.
P:
CITY OF LA QUINTA
Proprietary Funds
Statement of Cash Flows
Year ended June 30, 2006
See accompanying notes to the basic financial statements
29
Business Type
Governmental
Actvities
Activities -
EnterDrise Fund
Internal
Cash flows from operating activities:
Golf Course
Service Funds
Cash received other customers
$ 3,160,733
1,007,330
Cash payments to suppliers for goods and services
(3,774,127)
(365,523)
Cash payments to employees for services
(52,399)
(81,160)
Net cash provided by (used for) operating activities
(665,793)
560,647
Cash flows from noncapital financing activities:
Cash received from other funds
1,053,227
-
Net cash provided by (used for) non -capital financing activities
1,053,227
Cash flows from capital and related activities:
Insurance proceeds
-
9,985
Cash received from the sale of capital assets
_
225
Cash paid to acquire capital assets
-
(55,946)
Principal payments on long-term liabilities
(319,146)
Net cash provided by (used for) -capital and related activities
(319,146)
(45,736)
Cash flows from investing activities:
Interest received on investments
414
140,098
Net cash provided by (used for) investing activities
414
140,098
Net increase (decrease) in cash and cash equivalents
68,702
655,009
Cash and cash equivalents at beginning of year
3,426,605
Cash and cash equivalents at end of year
$ 68,702
4,081,614
Reconciliation of operating income to net cash provided by
operating activities:
Operating income (loss)
$ (1,402,418)
(43,181)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
517,833
616,106
Adjustments:
(Increase) decrease in accounts receivable
32,790
-
(Increase) decrease in prepaid items
(1,865)
(1,638)
(Increase) decrease in inventory
30,707
Increase (decrease) in accounts payable
139,515
(8,948)
Increase (decrease) in accrued salaries and benefits
10,430
(1,692)
Increase (decrease) in deferred revenue
7,215
-
Net cash provided by (used for) operating activities
$ (665,793)
560,647
Noncash capital, financing and investing activities:.
Capital assets contributed by other funds
$ 973,013
1,475,375
See accompanying notes to the basic financial statements
29
CITY OF LA QUINTA
Agency Funds
Statement of Fiduciary Assets and Liabilities
June 30, 2006
Assets
Cash and investments (note 2)
Taxes receivable
Interest receivable
Total assets
Liabilities
Deposits payable
Total liabilities
2006 2005
$ 839,010 1,221,946
30,313 25,829
3,484 6,166
$ 872,807 1,253,941
$ 872,807 1,253,941
$ 872,807 1,253,941
See accompanying notes to the basic financial statements.
-cut
CITY OF LA QUINTA
Notes to the Basic Financial Statements
Year ended June 30, 2006
(1) Summary of Significant Accounting Policies
(a) ftorting 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:
31
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
La Quinta 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
is legally separate, it is reported as if it were part of the City because the City
Council also serves as the governing board of the Agency. Separate financial
statements of the Agency can be obtained at City Hall.
City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Authority) was established pursuant
to a Joint Exercise of Powers Agreement dated November 19, 1991 between the
City of La Quinta and the La Quinta Redevelopment Agency. The purpose of the
Authority is to provide financing necessary for the construction of various public
improvements through the issuance of debt. Although the Authority is legally
separate, it is reported as if it were part of the City because the City Council also
serves as the governing board of the Authority. Separate financial statements of
the Authority are not prepared.
(b) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and Interpretations, APB Opinions, and Accounting Research
Bulletins that were issued on or before November 30, 1989 that do not conflict
with or contradict GASB pronouncements.
32
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
1 Summary of Si ificant 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 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 expenditure. Proceeds of long-
term debt are recorded as a liability in the government -wide financial statements,
rather than as 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 expenditure.
33
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1) Summary 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 Summ of Siggificant 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 revenges 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 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 Summarof Si ificant Accountin Policies Continued
Pronrietary Funds
The City's enterprise and 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 Types
The City's major governmental funds are as follows:
General Fund — The primary fund of the City is used to account for all revenue
and expenditures of the City not legally restricted as to use. A broad range of
municipal activities are provided through this fund including City Manager, City
Attorney, Finance, City Clerk, Community Development, Police Services, Public
Works, Building and Safety, and Community Services.
Redevelopment Avencv Debt Service — Proiect Area No. 1 Fund — This debt
service fund is used to account for the accumulation of resources for the payment
of debt service for bond principal and interest and trustee fees for Project Area
No. 1.
Redevelopment Agency Debt Service — Project Area No. 2 Fund — This debt
service fund is used to account for the accumulation of resources for the payment
of debt service for bond principal and interest and trustee fees for Project Area
No. 2.
36
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
1) Summary of Significant Accounting Policies, (Continued)
Financing Authority Debt Service Fund — To account for the Public Financing
Authority bond proceeds that will be used for specific projects and programs of
the City.
Capital Improvement Fund — This capital projects fund is used to account for the
planning, design and construction of various capital projects throughout the City
of La Quinta and the Redevelopment Agency.
Redevelo ment 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 fund is 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) Inventory
Inventory is valued at cost using the first in/first out (FIFO) method.
(g) 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)
1
Summya of Significant 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 govenunent—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
(h) Rmployee Leave Benefits
Sick time is vested on a percentage based on IlUniber 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.
(i) Postemployment Benefits
The City does not provide postemployment benefits (other than pension benefits)
to its employees.
0) 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) S fflnlinary of Significant Accounting Policies, (Continued)
(k) 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.
(1) Comparative Data
Comparative total data for the prior year have been presented in the
accompanying financial statements in order to provide an understanding of
changes in the Agency's financial position and operations. However, comparative
(i.e., presentation of prior year totals by fund type) data have not been presented
in each of the statements since their inclusion would make the statements unduly
complex and difficult to read. Certain minor reclassifications of prior year data
have been made in order to enhance their comparability with current year figures.
(2) Cash and Investments
Cash and investments as of June 30, 2006 are classified in the accompanying financial
statements as follows:
Statement of net assets:
Cash and investments $138,607,819
Cash with fiscal agent 78,480,841
Statement of Fiduciary Assets and Liabilities:
Cash and investments 839,010
Total cash and investments 5217,927.670
Cash and investments as of June 30, 2006 consist of the following:
Cash on hand $ 1,000
Deposits with financial institutions (150,924)
Investments 218.077.594
Total cash and investments
40
217.927.670
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Investments Authorized by the California Government 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.
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.
41
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
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 bond trustee. The table also identifies certain
provisions of these debt agreements that address interest rate risk, credit risk, and
concentration of credit risk.
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.
[ya
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
lfivestment 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.
[ya
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
2 Cash and Investments Continued
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:
Disclosures Relating to Credit Risk Remaining Maturity (in Months)
3 Months 4 to 6 7 to 12
Investment Type Total Or Less Months Months
U.S. Treasury notes $ 71,958,924 14,908,210 53,080,045 3,970,669
Federal agency securities 34,870,625 12,486,270 9,915,724 12,468,631
Commercial paper 2,988,560 2,988,560 - -
State investment pool 29,778,644 29,778,644 - -
Held by bond trustee:
Money market funds 5,626,971 5,626,971 -
U.S. Treasury bills 72,85870 33,825,670 _39,028,200 -
Total $218,077.594 99,614,325 102,023,969 412
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.
43
Minimum
Exempt
Rating
as of Year End
Legal
From
Not
Investment Tyne
Total
Rating
Disclosure
AAA
Aa A-1
Rated
U.S. Treasury notes
$ 71,958,924
N/A
71,958,924
-
_
Federal agency
34,870,625
N/A
-
26,941,425
- -
7,929,200
securities
Commercial paper
2,988,560
A
-
-
2,988,560
-
State investment pool
29,778,644
N/A
-
-
-
29,778,644
Held by bond trustee:
Money market funds
5,626,971
A
-
-
5,626,971 -
-
U.S. Treasury bills
72,853.870
N/A-
85 870
Total
2 i 8.077.59441
4,812,724
26,941,425
71 M89,560
7 707.844
43
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Cont€need).
Concentration of Credit Risk
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:
Investment
Issuer Type Amount
Federal Home Loan Bank Federal agency security $17,414,458
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
In June 2004, the Redevelopment Agency entered into an
agreement to borrow $90,000,000 from the Financing
Authority Debt Service Fund to provide for the advance
refunding of the Agency's Redevelopment Project Areas No. 1
and 2, 1995 Housing Tax Allocation Bonds and to finance
projects benefiting low and moderate income housing within
the project areas. The funding was provided through the
issuance of the 2004 Series A Local Agency Revenue Bonds
issued by the Financing Authority. The note accrues interest
between 3% and 5.25% per annwn, 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, 2006
$ 3,397,767
9,500,000
77,178
12,974,945
59,265,000
$102,239.245
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, 2006 is as
follows:
Balance at Balance at
June 30, 2005 Additions Deletions June 30, 2006
Buildings and improvements
$ 28,426,366
81375,289
(140,000)
36,661,655
Equipment and furniture
1,670,697
295,505
(58,415)
1,907,787
Vehicles
1,091,912
62,816
(13,011)
1,141,717
Infrastructure
99,260,125
141x_77,433
(91,227)
113,346,331
Total cost of depreciable
assets
130,449,100
22,911,043
(302,653)
153,057,49[}
Less accumulated
depreciation:
Buildings and
improvements
6,895,175
1,120,767
(36,667)
7,979,275
Equipment and furniture
1,112,923
94,373
(54,474)
1,152,822
Vehicles
636,727
132,595
(13,011)
756,311
Infrastructure
56,070 023
1854,353X91,227)
58,833,149
Total accumulated
depreciation
Net depreciable assets
Capital assets not
depreciated:
Land
Right of way
Construction in progress
Capital assets, net
64,714,848 4,202,088 (195.379) 68,721,557�_
65,734,252 18,708,955
57,727,433 3,334,120
246,299,394 9,385,612
27,794,113 25,656,125
397,555,1927 0�8�4.812
(107,274) 84,335,933
(7,118,039) 53,943,514
255,685,006
{26,622,907} 26,827,331
(33.84$.220) 420.791,784,
Depreciation expense was charged in the following functions in the Statement of
Activities:
General government $ 79,815
Public safety 564,1.21
Community services 593,056
Planning and development 24,053
Public works 2,941 ,04_3
Total governmental activities2 2 8
47
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(5) Capital Assets, (Continued)
226,600
- 337,009
Capital asset activity for business
-type activities for the year ended June 30, 2006 is as
follows:
2,035
4,069
- 6,104
Balance at
Balance at
- 6,076
J«iie 30. 2005 Additions
Deletions June 30, 2006
Buildings and improvements
$ 6,236,075 335,210
- 6,571,285
Equipment and furniture
1,058,737 620,011
- 1,678,748
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
7,35,415 955,221 - 8,290,636
110,409
226,600
- 337,009
96,208
283,113
_ 379,321
2,035
4,069
- 6,104
2,025
4,051
- 6,076
210.677
517,833
- 728,510
7,124,738
437,388
- 7,562,126
Capital assets not
depreciated:
Land 34,977,525 626,123 - 35,603,648
Capital assets, net $42.102,263 1,063,511 - 43,165,774
Depreciation expense was charged in the following function in the Statement of
Activities:
Golf Course
48
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(6) Changes in Long -Terni_ Liabilities – Governmental Activities
Changes in governmental long-term liabilities for the year ended June 30, 2006 were as
follows:
Amounts
Balance at Balance at due within
June 30. 2005 Additions Deletions June 30, 2006 one year
City:
Compensated absences payable
$ 549,028
637,627 (578,389)
608,266
552,898
Due to the Coachella Valley
Association of Governments
378,311
- (50,000)
328,311
50,000
Developer Agreement Payable
898,141
- (122,111)
776,030
132,491
Redevelopment Agency:
RDA Project Area No. 1:
Tax allocation bonds
140,263,659
- (2,348,968)
137,914,691
2,392,999
Pass-through agreements payable:
-
Coachella Valley
Unified School District
5,927,263
- (740,636)
5,186,627
755,449
RDA Project Area No. 2:
Tax allocation bonds
6,230,000
- (100,000)
6,130,000
105,000
Due to County of Riverside
1,950,000
- (100,000)
1,850,000
100,000
Financing Authority:
Revenue bonds
94,522,058-
994 20993527,849
1,794,209
Total2St,218.460
637T627 (x
_4,1.774
Compensated absences are generally liquidated by the general fund.
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 has agreed to 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, 2006, the balance payable was
$328,311.
The minimum annual requirements to amortize payable to Coachella Valley Association
of Governments as of June 30, 2006 are as follows:
June 30 Principal
2007
$ 50,000
2008
50,000--
0,000-.2009
2009
50,000
2010
50,000
2011
50,000
2012
50,000
2013
28.311
EIS
8 Tax Allocation Bonds
As of June 30, 2006, 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, 2006 is $14,145,000.
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, 2006 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, 2006 is $6,130,000.
51
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
8) Tax Allocation Bonds. [Continued
Tax Allocation Bonds. Series 2001 - Protect 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, 2006 is
$46,383,564 ($48,000,000 net of unamortized discount and issuance costs of
$1,616,436).
Tax Allocation Bonds, Series 2002 - Project Area No. 1
On June 12, 2002, the Agency issued tax allocation bonds in the amount of $40,000,000
to finance capital projects benefiting the La Quinta Redevelopment Project Area No. 1.
the 2002 tax allocation bonds were issued at a discount of $360,000 and issuance costs of
$1,250,096.
The bonds consist of $6,355,000 of serial bonds and $33,645,000 of term bonds. Interest
rates on serial bonds range from 1.75% and 4.00% and are payable semi-annually on
March 1 and September 1 of each year until maturity. Term bonds accrue interest at
5.00% and 5.125% and mature on September 1, 2022 and September 1, 2023. The
interest and principal on the bonds are payable from pledged tax increment revenues.
A portion of the proceeds were used to obtain a surety agreement to satisfy the bond
reserve requirement. The principal balance of outstanding bonds at June 30, 2006 is
$36,879,584 ($38,275,000 net of unamortized discount and issuance costs of
$1,395,416).
Tax Allocation Bonds, Scries 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 - Proiect Area No. 1. [Continued
Interest is payable semi-annually on March 1 and September 1 of each year, commencing
March 1, 2004. Interest payments range from 4.24% to 6.44% per annum. The interest
and principal on the bonds are payable from pledged tax increment revenues.
Term bonds maturing on September 1, 2013 through September 1, 2032 are subject to
mandatory redemption from minimum sinking fund payments, in part by lot, on
September 1, 2004, September 1, 2014, and September 1, 2024, respectively, and on each
September 1 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
A portion of the proceeds was used to obtain a surety agreement to satisfy the bond
reserve requirement. There are certain limitations regarding the issuance of parity debt as
further described in the official statement. The principal balance of outstanding bonds at
June 30, 2006 is $24,746,542 ($25,605,000 net of unamortized discount and issuance
costs of $858,458).
53
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(8) Tax Allocation Bonds, (,Continued)
The minimum annual requirements to amortize tax allocation bonds as of June 30, 2006
are as follows:
54
Project Area No. 1
Project Area No. 2
Tax Allocation Bonds
Tax Allocation
Bonds
June 30;
Principal
Interest
Principal
Interest
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
$ 141,785,000
124,703,316
6,130,000
5,509,268
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 panty debt as further described in the official
statement. The amount of principal outstanding on the 1996 Lease Revenue Refunding
Bonds at June 30, 2006 is $6,245,000.
2004 Series A focal Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the amount
of $90,000,000 to finance projects benefiting low and moderate income housing in La
Quinta Redevelopment Project Area No. 1 and the La Quinta Redevelopment Project
Area No. 2 and to advance refund the Agency's Redevelopment Project Areas No. 1 and
2, 1995 Housing Tax Allocation Bonds. The 2004 local agency revenue bonds were
issued 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, 2006 is $87,282,849 ($89,265,000 net of unamortized discount and issuance
costs of $1,982,151).
55
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(9) _Revenue Bonds, (Continued)
The minimum annual requirements (including sinking fund requirements) to amortize
revenue bonds as of June 30, 2006 are as follows:
56
1996 Lease Revenue
2004 Series A Revenue Bonds
June 30:
Principal
Interest
Principal
Interest
2007
$ 345,000
333,865
1,520,000
4,403,156
2008
360.,000
315880
1,570,000
4,356,806
2009
380,000
296,450
1,615,000
4,304,994
2010
400,000
275;280
1,670,000
45243,332
2011
420,000
252,525
1,740,000
4,175,132
2012
445,000
228,521
1,805,000
4,099,719
2013
470,000
203,130
1,890,000
4,016,581
2014
495,000
176,351
1,975,000
3,924,681
2015
525,000
148,046
2,075,000
3,823,431
2016
555,000
116,076
2,175,000
3,714,462
2017
585,000
86,441
2,290,000
3,597,256
2018
615,000
53,141
2,410,000
3,473,881
2019
650,000
18,038
2,535,000
3,344,075
2020
-
-
2,670,000
3,207,444
2021
-
-
2,810,000
3,063,594
2022
-
-
2,960,000
2,912,132
2023
-
-
3,115,000
2,752,663
2024
-
-
3,275,000
2,584,925
2025
-
-
3,450,000
2,408,394
2026
-
-
3,630,000
2,227,082
2027
-
-
3,810,000
2,041,082
2028
-
-
4,000,000
1,845,832
2029
-
-
4,200,000
1,640,832
2030
-
-
4,410,000
1,425,582
2031
-
-
4,635,000
1,196,560
2032
-
-
4,870,000
952,994
2033
-
-
5,120,000
697,000
2034
-
-
5,380,000
427,938
2035
-
-
5,660,000
__145,031
$ 6~245,000
2,503,744
89,265,000
81,006,586
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, 2006 is $1,850,000.
The minimum annual requirements to amortize amounts due to the County of Riverside
as of June 30, 2006 are as follows:
June 30: Principal
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
57
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(11) 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, 2006 totaled $5,186,627. 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, 2006 are as follows:
June 30 Principal
2007
$ 755,449
2008
770,558
2009
785,968
2010
801,688
2011
817,722
2012
834,076
2013
421,166
(12)_ Developer Agreement Payable
In December 1998, the City entered into a tax sharing agreement with Stamko
Development Co. in relation to the development of an auto mall located within the City.
For a period of ten years, the agreement requires the City to make quarterly payments to
the developer in the amount of 33% of the sales and use tax revenues generated by the
site up to a maximum amount of $122,250 in any twelve month period. Additionally, if
the sales and use tax revenues generated exceed $530,000, adjusted annually by the CPI
index, the City is required to pay $76,204 for that year for a maximum of ten years, based
upon a $500,000 note at an interest rate of 8.5%. For the year ended June 30, 2006, 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, 2006 is $776,030.
58
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
( 12) Developer Agreement Payable, (Continued)
The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2006 are as follows:
June 30
Prig
Interest
Total
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
108.454
776 030
216,240
992,270
(13) Changes in Long -Tern -i Liabilities Business-t-ypQ Activities
Changes in business -type long-term liabilities for the year ended June 30, 2006 were as
follows:
Amounts
Balance at Balance at due within
June 30, 2005 Additions Deletions June 30, 2006 one year
Golf Course:
Capital leases payable $$ (3 1. i}, 3520
The City of La Quinta entered into several capital lease agreements for the operation of
Silver Rock Resort. The City financed the acquisition of a point-of-sale system,
maintenance equipment, GPS 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 under these lease agreements are recorded at their acquisition cost of
$1,488,617.
W11
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(13) Changes in Long -Term Liabilities — Business -type Activities, (Continued)
The following schedule summarizes the debt to maturity payments for capital leases:
Year ending
Business -type Activities
June 30:
Principal
Interest
2007
$335,520
43,180
2008
332,319
25,694
2009
290,477
15,425
2010
132,286
2,188
Total
UMM2
$�
(14) Debt Without Governmental Commitment
The City of La Quinta sold Improvement Bonds issued pursuant to the California State
Improvement Act of 1915. The Bonds are payable from the annual installments collected
on the regular property tax bills sent to owners of property having unpaid assessments
levied against land benefited by the projects. The Bonds are neither general obligations of
the City nor any other political subdivision and the full faith and credit of the City is not
pledged for repayment thereof. The City is not liable for repayment of the debt, but is
only acting as agent for the property owners in collecting the assessments and forwarding
the collections to bondholders. The Bonds do not constitute an obligation of the City;
therefore, they are not included in the long-term liability in the accompanying financial
statements. The following is a summary of Improvement Bonds outstanding at
June 30, 2006:
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 June 30, 2006
5.00%-5.40% 350,000
4.10%-5.20% 520,000
5.00%-6.60% 1,575,000
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(15) Defined Benefit Pension Plan
Plan Description
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), an agent multiple -employer public employee defined benefit pension plan. PERS
provides retirement, disability benefits, and death benefits to plan members and
beneficiaries. PERS acts as a common investment and administrative agent for
participating public entities within the State of California. Copies of PERS' annual
financial report may be obtained from its executive office at 400 "P" Street, Sacramento,
California 95814.
Participants are required to contribute 7% of their annual covered salary. The City makes
the contributions required of City employees on their behalf and for their account.
Benefit provisions and all other requirements are established by state statute and town
contract with employee bargaining groups.
Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual
required contribution (ARC) plus an adjustment for the cumulative difference between
the APC and the employer's actual plan contributions for the year. The cumulative
difference is called the net pension obligation (NPO). The ARC for the period July 1,
2005 to June 30, 2006 has been determined by an actuarial valuation of the plan as of
June 30, 2003. The contribution rate indicated for the period is 12.764% 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, 2006, this contribution rate would be
multiplied by the payroll of covered employees that was actually paid during the period
July 1, 2005 to June 30, 2006.
61
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(1 5) 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, 2003
Entry Age Actuarial Cost Method
Level Percent of Payroll
16 Years as of the Valuation Date
3 Year Smoothed Market
7.75% (net of administrative expenses)
3.25% to 14.45% depending on Age,
Service, and type of employment
3.00%
3.25%
A merit scale varying by duration of
employment coupled with an assumed
annual inflation component of 3 % 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 CalPERS. 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.
Assembly Bill 194, which added Sections 20840-20842 to the California Government
Code allowed PERS to create risk pools and mandate public agency participation in those
pools. Commencing with the valuation of June 30, 2003, mandatory pooling was
established for plans with less than 100 active members. Henceforth, the City of La
Quinta was required to participate in a risk pool of cities with less than 100 employees.
The valuation report as of June 30, 2003 contained three sections: 1) the specific
information of the plan including the development of the pooled contribution rate, 2) the
report of the Risk Pool Actuarial Valuation as of June 30, 2003, and 3) the Final Stand -
Alone Actuarial Valuation of the City of La Quinta as of June 30, 2003 (to be removed in
later years).
At the time of joining the risk pool (valuation of June 30, 2003), a side fund was created
to account for the differences between the funded status of the pool and funded status of
the City's plan. The side fund will be credited, on an annual basis, with the actuarial
investment return assumption. The side fund will also be subject to amortization on an
annual basis.
62
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
15 Defined Benefit Pension Plan Continued
A positive side fund meant that the employer will have to contribute less than the pool's
required contribution rate while a negative side fund indicates the employer will have to
contribute more than the pool's required contribution rate. As of June 30, 2004, the
Miscellaneous Plan side fund was negative, which increased the City's required.
contribution.
The most recent Miscellaneous Plan valuation report as of June 30, 2004 reflect the
following balances:
Miscellaneous Plan Side Fund rune 30.2003
Side Fund as of valuation date $(1,118,251)
Adjustments
Side Fund Payment (292,424)
Side Fund one year later $(1,508,459)
Adjustments
Side Fund Payment 30,540
Side Fund two years later $(1,593,664)
Amortization Period 16
Side Fund Payment during the last year $ 139,661
June 30-200
(1,508,459)
30,540--
(1,593,663)
0,540°(1,593,663)
139,661
(1,572,200)
15
144,200
For the miscellaneous plan, the City was overfunded for the year ended June 30, 2004.
Amortization periods are not determined for overfunded plans.
The Schedule of Funding Progress below shows the recent history of the actuarial value
of assets, actuarial accrued liability, their relationship, and the relationship of the
unfunded accrued liability to payroll.
Funding P olicv
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, 2006, the rate was 12,764% of annual covered payroll. The contribution
requirements of plan members and the City are established and may be amended by
PERS.
63
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(15) Defined Benefit Pension Plan, (Continued)
Annual Pension Cost
For 2006, the City's annual pension cost (employer contribution) in the amount of
$400,631 was equal to the City's required and actual contributions. The required
contribution was determined as part of the June 30, 2003, actuarial valuation using the
entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75%
investment rate of return (net of administrative expenses), (b) projected annual salary
increases that vary by duration of service, and (c) 2% per year cost -of -living adjustments.
Both (a) and (b) included an inflation component of 3%. 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, 2019.
The valuation report of June 30, 2003 reflected both the final stand-alone and risk pool
actuarial valuations for the City's Safety Plan and Miscellaneous Plan. As of June 30,
2004, the stand-alone actuarial valuation was no longer provided by the California Public
Employees' Retirement System (PERS). The funding status for both the City's Stand-
alone Plan and Risk Pool Plan funding progress schedule is provided to phase out the
City's Stand-alone Plan information and introduce the Risk Pool Plan information.
Miscellaneous Employees
Three -Year Trend Information
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC) APC Contributed Obligation
6/30/04 $ 0 100% -0-
6/30/05 336,348 100% -0-
6/30/06 400,631 100% -0-
64
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
C151 Defined Benefit Pension Plan, (Continued)
Stand Alone
Required Supplementary Information ($ amount in thousands)
Entry Age
Normal Actuarial Unfunded Annual UAAL
Accrued Value Liability/ Covered As a % of
Valuation Date Liabilijy of Assets (Excess Assets) Funded Status Payroll Payroll
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%
06/30/04 No Longer Available
Risk Pool
Required Supplementary Information ($ amount in thousands)
Entry Age
Normal Actuarial Unfunded Annual UAAL
Accrued Value Liability/ Covered As a % of
Valuation Date Liability of Assets (Excess Assets) Funded Status Payroll Payroll
06/30/02 Not Applicable
06/30/03 $317,520,943 289,439,549 28,081,394 91.2% 74,981,463 37.5%
06/30/04 434,267,445 379,807,592 54,459,853 87.5% 97,227,479 56.0%
Information for the June 30, 2005 valuation date was not available for inclusion in the
financial statements.
65
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 ($0-$100,000 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.
66
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(17) Contingencies
Various claims and suits have been filed against the City in the normal course of
operations. Although the outcome of these lawsuits is not presently determinable, in the
opinion of management, the resolution of these matters will not have a material adverse
effect on the financial position of the City.
(18) Educational Revenue Augmentation Fund (ERAF) Payment
During fiscal year ended June 30, 2006, 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 $2,903,657 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, 2006 are as follows:
Due from other funds Due to other funds Amount
General Fund Library Fund $ 239,119 (A)
Golf Course Fund 875.674 (A)
Total General Fund 19114,793
Debt Service Redevelopment
Agency PA No. 2 Fund 2004 Low/Mod Bond Fund 1,765.531 (A)
Total 2 880,?4
(A) Short term borrowing to cover temporary cash shortfalls
67
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, 2006 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
Amnnnt
$12,000,000 (B)
10,000,000 (C)
700,961 (D)
22,700,961
4,385,127 (E)
979,970 (F)
8 A M
(B) As of June 30, 2006, the amount due to the General Fund from RDA Debt Service
— PA No. 1 was $12,000,000. This consists of an outstanding advance of
$6,000,000 loaned to the Redevelopment Agency with repayments beginning in
2030/31 and accrues interest at 10% per annum. The other outstanding advance
of $6,000,000 loaned to the Redevelopment Agency requires repayments
beginning in 2030/31 and accrues interest at 7% per annum.
(C) As of June 30, 2006, the amount due to the General Fund from RDA Debt Service
— PA No. 2 was $10,000,000. The advance loaned to the Redevelopment Agency
with repayment beginning in 2035/36 and accrues interest at 10% per annum.
(D) As of June 30, 2006, the General Fund has advanced to the Golf Course fund
$700,961. The advances accrue interest at the City's investment pool rate and are
to be repaid by the golf course out of future profits.
(E) In July 2002, an advance of $1,773,664 was made to provide funding for the
development of the publicly owned improvements to the La Quinta Community
Park. The advance accrues interest at the earnings rate of the City's investment
pool fund. As of June 30, 2006, the remaining balance of the advance for the La
Quinta Community Park is $2,260,728
In April 2005, another advance of $2,490,273 was made to provide funding for
the construction of the public library. The advance accrues interest at the earnings
rate of the City's investment pool fund. The remaining balance of this advance at
June 30, 2006 is $2,124,399.
68
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
fl Interfund Receivables and Payables, (Continued)
(F) In February 2003, the Redevelopment Agency Capital Projects — PA No. 2 Fund
advanced $1,350,131 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, 2006, the remaining balance of the advances is
$979,970. -
(20)Construction Commitments
The following material construction commitments existed at June 30, 2006:
Expenditures to date Remaining
Project Name as of June 30, 2006 Commitments
Dune Palms Road and Ave 48 Housing
Phase 2 — Jefferson Street Improvements (Hwy. 111)
Vista Dunes Mobile Home Park
Silver Rock Resort
City Hall Expansion
Highway 111 — Adams to Jefferson
69
$ 372,873
29,780,562
16,843,919
19,039,645
8,543,771
18,747,188
82,038,590
15,722,162
752,902
3,482,945
234,281
2,480,705
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, 2006:
Transfer In
General Fund
RDA Debt Service — PA No. 1 Fund
RDA Debt Service — PA No. 2 Fund
Transfer Out
Other governmental funds
Other governmental funds
Other governmental funds
Financing Authority Debt Service Fund RDA Debt Service — PA No. 1 Fund
Financing Authority Debt Service Fund RDA Debt Service — PA No. 2 Fund
Subtotal Financing Authority Debt Service Fund
Amount
$ 360,206
3,945,802 (A)
7.998.654 (B)
3,465,227 (C)
1,706,754 (C)
5,171,981
Capital Improvement Fund General Fund 806,712
Capital Improvement Fund RDA Capital Projects — PA No. 1 Fund 6,642,051 (D)
Capital Improvement Fund 2004 Low/Moderate Bond Fund 2,773,994 (E)
Capital Improvement Fund Other governmental funds 7,189.708 (F)
Subtotal Capital Improvement Fund 17,412,465
RDA Capital Projects — PA No. 1 Fund RDA Debt Service — PA No. 1 Fund 909,510
RDA Capital Projects — PA No. 1 Fund Other governmental funds 3,868
Subtotal RDA Capital Projects — PA No. 1 Fund 913,378
Other governmental funds
Other governmental funds
Subtotal other governmental funds
Silver Rock Fund
Capital Improvement Fund 11,868
General Fund 13,981
25,849
General Fund 164.190
Total $35,992,525
70
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) $3,945,802 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) $6,291,900 was transferred from the Low/Moderate Housing Project Area No. 2
Fund to the RDA Debt Service Project Area No. 2 Fund as repayment for a
General Fund advance for the purchase of a parcel of land. $1,706,754 was
transferred from the Low/Moderate Housing Project Area No. 2 Fund to the RDA
Debt Service Project Area No. 2 Fund to pay a portion of the 2004 Series A Local
AgencyRevenue Bond debt service.
(C) $3,465,227 and $1,706,754 was transferred from the RDA Debt Service Project
Area No. 1 and 2 Funds, respectively, to the Financing Authority Debt Service
Fund to pay a portion of the 2004 Series A Local Agency Revenue Bond debt
service.
(D) $3,193,435 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. $2,100,052 was transferred to the Capital Improvement
Fund from the RDA Capital Projects — PA No. 1 Fund to fund the construction of
the Eisenhower Bridge capital project. Other capital projects totaled $1,348,564.
(E) $2,773,994 was transferred to the Capital Improvement Fund from the RDA 2004
Low/Mod Bond Fund for various capital projects funded by bond proceeds.
$1,486,664 was transferred to fund the Vista Dunes Mobile Home Park capital
project and other capital projects totaled $1,287,330.
(F) The Transportation Development Fund transferred to the Capital Improvement
Fund $4,295,941 to fund various transportation related capital projects fund.
Other transfers totaled $2,893,767.
71
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(22) Fund Deficits
The following funds had deficit balances at June 30, 2006:
Capital Projects Fund:
Parks and Recreation $2,260,152
Library Development 2,124,399
Fire Facility 979,970
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 exceeded the developer fees collected in this
fund.
Fire Facility
The deficit was created by transfers to the Capital Improvements Capital Projects Fund
for the construction of a fire station. The cost for the current year exceeded the developer
fees collected in this fund.
72
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
(23) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2006 exceeded the appropriations of the
following funds/departments:
73
Budget
Actual
Variance
General Fund:
Fiscal Services
$465,783
499,590
(33,807)
Public Safety Building
and Safety Administrative
135,535
316,194
(180,659)
Public Safety Building
1,161,874
1,386,067
(224,193)
Public Safety Civic Center Building
439,117
464,017
(24,900)
Community Services Parks
and Recreation Programs
150,182
173,574
(23,392)
Public Works Administration
143,284
243,731
(100,447)
Public Works Maintenance L and L
1,116,380
1,293,525
(177,145)
Capital Projects Administration
322,643
729,967
(407,324)
Debt Service Funds:
Redevelopment Agency
Project Area No. 1
31,482,436
31,781,454
(299,018)
Redevelopment Agency
Project Area No. 2
17,940,549
18,627,075
(686,526)
Capital Projects Funds:
Parks and Recreation
110,000
110,416
(416)
Civic Center
204,173
207,455
(3,282)
Library Development
82,000
86,344
(4,344)
Fire Facility
37,000
39,039
(2,039)
A.D. 2000-1 Phase VI
-
298,794
(298,794)
73
CITY OF LA QUINTA
Notes to the Basic Financial Statements
(Continued)
241 Conduit Debt Financin
2002 Series B Multifamilv Housine 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, 2006 are
$2,950,000.
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.
25 Unreserved Fund Balances
Unreserved fund balances at June 30, 2006 consisted of the following:
General
Fund
Designated for:
Emergency reserve $16,905,386
Cash flows
3,041,984
Capital improvements
10,877,058
Educational purposes
750,000
Economic development
4,967,072
Encumbrances/carryover
appropriations
1,319,787
Operations/projects/
transfers
15,197,331
Undesignated
Total unreserved fund
balances (deficit)
Debt Service Capital Projects Other
RDA Financing RDA 2004 Low/ Governmental
PA No. 2 Authority PA No. 1 Mod [fond Funds Total
- - - - 16,905,386
3,041,984
- - - 10,877,058
- 750,000
- - - 4,967,072
1,319,787
- - - - 15,197,331
734.999 3.591 833.08'1 (1.768.7091 43,910,540 43,733,510
$53.058.618 734,999 321 $34$ (1,768,709
3.910 S40 261
74
Notes to the Basic Financial Statements
(Continued)
26 Golf Course Mann ement 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, 2006 the Golf Course had an operating loss of $1,402,418.
75
REQUIRED SUPPLEMENTARY INFORMATION
orl
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.
77
Revenues:
Taxes
Licenses and permits
Charges for services
Intergovernmental
Investment income
Rental income
Miscellaneous
Total revenues
Expenditures:
General government:
Legislative
City manager
Economic development
Personnel
Fiscal services
Central services
City clerk
Total general government
Public safety:
Police
Building and safety
administrative
Code compliance
Animal control
Building
Emergency services
Fire
Civic center building
Total public safety
Community services:
Senior center
Parks and recreation
administration
Parks and recreation programs
Total community services
CITY OF LA QUINTA
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2006
Budget
Original Final
Variance with
Final Budget
Actual Positive (Negative)
$ 12,751,000
12,751,000
19,259,829
971,400
971,400
5,145,430
1,473,800
1,474,600
2,180,058
5,694,840
5,746,941
6,530,777
2,265,300
2,265,300
4,115,872
-
-
123,500
16,500
332,511
315,812
23,172,840 23,541,752 37,671,278
779,903
769,400
621,859
801,786
695,254
667,662
1,139,368
1,196,868
1,156,384
845,709
730,716
571,668
545,260
465,783
499,590
391,042
2,650,827
506,995
433,079
442,681
402,326
4,936,147 6,951,529 4,426,484
7,988,288 8,131,228 6,561,591
310,881
135,535
316,194
660,374
680,374
580,183
395,986
420,986
303,795
916,279
1,161,874
1,386,067
33,650
33,650
15,317
4,337,893
4,400,478
3,402,023
439,117
439,117
464,017
15,082,468 15,403,242 13,029,187
6,508,829
4,174,030
705,458
783,836
1,850,572
123,500
(16,699)
Prior
Year
Actual
16,762,028
3,226,167
3,402,602
7,552,035
3,238,808
513,030
14,129,526 34,694,670
147,541 537,891
27,592 620,669
40,484 795,395
159,048 382,352
(33,807) 456,936
2,143,832 556,435
40,355 415,833
2,525,045 3,765,511
1,569,637 6,136,323
(180,659)
169,151
100,191
497,708
117,191
208,348
(224,193)
1,321,862
18,333
28,815
998,455
3,542,046
(24,900)
460,330
2,374,055 12,364,583
372,661
372,661
337,065
35,596
307,579
901,486
1,029,396
737,669
291,727
648,149
148,610
150,182
173,574
(23,392)
148,781
1,422,757
1,552,239
1,248,308
303,931
1,104,509
78
(Continued)
CITY OF LA QUINTA
General Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
(Continued)
79
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (Negative)
Actual
Planning and development:
Community development
administration
688,772
986,610
661,317
325,293
352,158
Current planning
585,952
647,289
294,252
353,037
510,732
Total planning
and development
1,274,724
1,633,899
955,569
678,330
862,890
Public works:
Public works administration
217,162
143,284
243,731
(100,447)
169,924
Development and traffic
879,851
1,429,213
1,149,001
280,212
1,288,794
Maintenance/operations - St.
1,139,553
750,624
578,222
172,402
888,104
Maintenance/operations - L & L
1,022,232
1,116,380
1,293,525
(177,145)
939,373
Maintenance/operations - Park
973,651
1,128,051
1,050,450
77,601
855,306
Capital projects administration
612,019
322,643
729,967
(407,324)
653,184
Total public works
4,844,468
4,890,195
5,044,896
(154,701)
4,794,685
Total expenditures
27,560,564
30,431,104
24,704,444
5,726,660
22,892,178
Excess (deficiency) of
revenues over (under)
expenditures
(4,387,724)
(6,889,352)
12,966,834
19,856,186
11,802,492
Other financing sources (uses):
Transfers in
332,542
332,542
360,206
27,664
306,711
Transfers out
(425,454)
(2,042,645)
(984,883)
1,057,762__(2,887,47?)
Total other financing
sources (uses)
(92,912)
(1,710,103)
(624,677)
1,085,426
(2,580,761)
Net change in fund balance
(4,480,636)
(8,599,455)
12,342,157
20,941,612
9,221,731
Fund balance at beginning of year
63,926,967
63,926,967
63,926,967
-
54,705,236
Fund balance at end of year
$ 59,446,331
55,327,512
76,269,124
20,941,612
63,926,967
79
CITY OF LA QUINTA
Notes to Required Supplementary Information
Year ended June 30, 2006
(1) BLidgets and Budgetary Accounting
The City adopts an annual budget prepared on the modified accrual basis of accounting
for its governmental funds and on the accrual basis of accounting for its proprietary
funds. The City Manager or his designee is authorized to transfer budgeted amounts
between the accounts of any department. Revisions that alter the total appropriations of
any department or fund are approved by City Council. Additional appropriations in the
amount of $74,437,916 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, 2006 exceeded the appropriations of the
following funds/departments:
80
Budge
Actual
Variance
General Fund:
Fiscal Services
$465,783
499,590
(33,807)
Public Safety Building
and Safety Administrative
135,535
316,194
(180,659)
Public Safety Building
1,161,874
1,386,067
(224,193)
Public Safety Civic Center Building
439,117
464,017
(24,900)
Community Services Parks
and Recreation Programs
150,182
173,574
(23,392)
Public Works Administration
143,284
243,731
(100,447)
Public Works Maintenance L and L
1,116,380
1,293,525
(177,145)
Capital Projects Administration
322,643
729,967
(407,324)
80
SUPPLEMENTARY SCHEDULES
81
CITY OF LA QUINTA
Non -Major Governmental Funds
Combining Balance Sheet
June 30, 2006
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other funds
Advances from other funds
Total liabilities
Fund balances:
Reserved for:
Prepaid items
Notes receivable
Advances to other funds
Deposits
Unreserved:
Designated for
capital projects
Undesignated
Total fund balances
Total liabilities and
fund balances
$ 61,800
Special
Capital
109,296
10,862,348
-
Revenue
Projects
Totals
27,835
47,489
Funds
Funds
2006
2005
Assets
-
5,365,097
5,365,097
7,061,027
Cash and investments
$ 34,816,447
12,789,555
47,606,002
31,398,993
Cash with fiscal agent
-
244
244
5,096
Accounts receivable
141,405
60,900
202,305
143,649
Prepaid items
3,994
1,505
5,499
-
Interest receivable
141,365
57,971
199,336
155,101
Notes receivable
12,974,945
-
12,974,945
12,858,098
Due from other governments
1,696,449
-
1,696,449
179,573
Advances to other funds
-
979,970
979,970
1,122,148
Deposits
-
-
-
1,110
Total assets
$ 49,774,605
13,890;145
63,664,750
45,863,768
Liabilities and Fund Balances
Liabilities:
Accounts payable
Deferred revenue
Deposits payable
Due to other funds
Advances from other funds
Total liabilities
Fund balances:
Reserved for:
Prepaid items
Notes receivable
Advances to other funds
Deposits
Unreserved:
Designated for
capital projects
Undesignated
Total fund balances
Total liabilities and
fund balances
$ 61,800
80,291
142,091
109,296
10,862,348
-
10,862,348
10,740,225
19,654
27,835
47,489
46,499
239,119
-
239,119
194,088
-
5,365,097
5,365,097
7,061,027
11,182,921
5,473,223
16,656,144
18,151,135
3,994
1,505
5,499
-
2,112,597
-
2,112,597
2,117,873
-
979,970
979,970
1,122,148
1,110
- 12,799,968
12,799,968
13,215,994
36,475,093 (5,364,521)
31,110,572
11,255,508
38,591,684 8,416,922
47,008,606
27,712,633
$ 49,774,605 13,890,145
63,664,750
45,863,768
82
CITY OF LA QUINTA
Non -Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2006
Excess (deficiency) of
revenues over (under)
expenditures 24,792,393 5,766,573 30,558,966 16,491,135
Other financing sources (uses):
Transfers in 13,981 11,868 25,849 2,000
Transfers out (7,985,879) (11,512,359) (19,498,238) (24,561,070)
Proceeds from sale of capital asset; 384,812 7,824,584 8,209,396 8,566,295
Total other financing
sources (uses)
Net change in fund balances
Fund balances at
beginning of year
Fund balances at end of year
(7,587,086) (3,675,907) (11,262,993) (15,992,775)
17,205,307 2,090,666
21,386,377 6,326,256
$ 38,591,684 8,416,922
3Cl
19,295,973 498,360
27,712,633 27,214,273
47,008,606 27,712,633
Special
Capital
Revenue
Projects
Totals
Funds
Funds
2006
2005
Revenues:
Taxes
$ 14,089,024
_
14,089,024
10,282,664
Charges for services
1,187,931
-
1,187,931
-
Developer fees
6,244,099
6,229,233
12,473,332
6,091,156
Intergovernmental
3,799,269
-
3,799,269
1,769,314
Investment income
948,498
485,096
1,433,594
588,157
Special assessments
818,526
-
818,526
825,292
Rental income
299,525
-
299,525
520,243
Loan repayments
1,621,850
-
1,621,850
2,381,602
Miscellaneous
310,227
-
310,227
12,392
Total revenues
29,318,949
6,714,329
36,033,278
22,470,820
Expenditures:
Current:
General government
-
207,455
207,455
205,410
Planning and development
2,845,355
205,708
3,051,063
3,746,276
Public works
1,643,324
298,794
1,942,118
1,412,084
Capital projects
37,877
-
37,877
453,307
Debt service:
Interest and fiscal charges
-
235,799
235,799
162,608
Total expenditures
4,526,556
947,756
5,474,312
5,979,685
Excess (deficiency) of
revenues over (under)
expenditures 24,792,393 5,766,573 30,558,966 16,491,135
Other financing sources (uses):
Transfers in 13,981 11,868 25,849 2,000
Transfers out (7,985,879) (11,512,359) (19,498,238) (24,561,070)
Proceeds from sale of capital asset; 384,812 7,824,584 8,209,396 8,566,295
Total other financing
sources (uses)
Net change in fund balances
Fund balances at
beginning of year
Fund balances at end of year
(7,587,086) (3,675,907) (11,262,993) (15,992,775)
17,205,307 2,090,666
21,386,377 6,326,256
$ 38,591,684 8,416,922
3Cl
19,295,973 498,360
27,712,633 27,214,273
47,008,606 27,712,633
(This page intentionally left blank)
84
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.
Library Fund - To account for revenues from property tax increment dedicated library services.
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 (SI.EBG) 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 Gamin Fund - To account for contributions for public safety activities to reduce crime
and increase public safety.
Lighting and Landscape Special Assessment District 89-1 1~ unci - To account for special
assessments levied on real property and the expenditure thereof from City-wide lighting and
landscape maintenance and improvements.
- 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 Ouinta Public Safety Officer Fund - To account for contributions to be distributed to public
safety officers disabled or killed in the line of duty.
Arts in Public Places — To account for development fees paid in lieu of acquisition and
installation of approved artworks in a development with expenditures restricted to acquisition,
installation, maintenance and repair of artworks at approved sites.
South Coast Air Quality Fund - To account for contributions from the South Coast Air Quality
Management District. Use is limited to reduction and control of airborne pollutants.
AB 939 Fund - To account for the State mandated program to reduce waste sent to the landfills
through recycling efforts.
Redevelopment Agency, Low and Moderate Bond Fund P.A. No. l 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.
85
CITY OF LA QUINTA
Non -Major Special Revenue Funds
Combining Balance Sheet
June 30, 2006
86
Lighting
State
Federal
Indian
and
Gas Tax
Library Assistance
SLEBG Gaming
Landscape RCTC
Assets
Cash and investments
$ 380,848
- -
- 130,096
- -
Accounts receivable
-
- -
- -
- -
Prepaid items
-
- -
- -
-
Interest receivable
1,623
- _
- 760
- -
Notes receivable
-
_ -
- -
- -
Due from other
governments
48,006
1,360,689 -
- -
31,694
Deposits
-
- -
-
- -
Total assets
$ 430,477
1,360,689 -
130,856
31,694
Liabilities and Fund Balances
Liabilities:
Accounts payable
-
Deferred revenue
-
Deposits payable
-
- -
- -
- -
Due to other funds
-
239,119 -
- -
- -
Total liabilities
-
239,119 -
- -
- -
Fund balances:
Reserved for:
Prepaid items
-
- -
- -
- -
Notes receivable
-
- -
- -
- -
Deposits
-
- -
' -
- '
Unreserved
430,477
1,121,570 -
- 130,856
31,694 -
Total fund balances
430,477
1,121,570 -
- 130,856
31,694 -
Total liabilities and
fund balances
S 430,477
1,360,689 -
- 130,856
31,634
86
Public
Quimby Safety
Arts in
Public South Coast
Places Air Quality
Low/
Moderate
Income
Housing -
PA No. 1
Low/
Moderate
Income
Housing -
Totals
2006 2005
7,515,889 12,932 1,026,109 177,183 1,187,931 12,407,390
11,978,069
34,816,447
19,227,428
- - - - - 132,905
8,500
141,405
82,749
- LL - - - 2,488
1,506
3,994
-
33,685 58 4,332 786 - 49,755
50,366
141,365
91,485
- - - - - 3,474,945
9,500,000
12,974,945
12,858,098
- - - - - 152,908
103,152
1,696,449
179,573
- - - - - -
-
-
1,110
7,549,574 12,990 1,030,441 177,969 1,187,931 16,220,391
21,641,593
49,774,605
32,440,443
4,700 -
4,700 - -
36,656 20,444 61,800 101,126
1,362,348 9,500,000 10,862,348 10,740,225
19,654 - 19,654 18,664
- - 239,119 194,051
1,418,658 9,520,444 11,182,921 11,054,066
2,488 1,506 3,994 -
- 2,112,597 - 2,112,597 2,117,873
- - - - - - - - 1,110
7,549,574 12,990 1,025,741 177,969 1,187,931 12,686,648 12,119,643 36,475,093 19,267,394
7,549,574 12,990 1,025,741 177,969 1,187,931 14,801,733 12,121,149 38,591,684 21,386,377
7,549,574 12,990 1,030,441 177,969 1,187,931 16,220,391 21,641,593 49,774,605 32,440,443
87
CITY OF LA QUINTA
Non -Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2006
Revenues:
Taxes
Charges for services
Developer fees
Intergovernmental
Investment income
Special assessments
Rental income
Loan repayments
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and
development
Public works
Capital outlay
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
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 at
end of year
Lighting
Gas Federal Indian and
Tax Library Assistance SLEBG Gaming Landscape RCTC
839,235 1,716,102 475,181 100,000 177,250 449,011
10,580 - - 3,845 8,271 - -
- - - - 818,526 -
849.815 1,716,102 475.181 103,845 185,521 818,526 449,011
583,800 237,284 - - - 822,240 -
583,800 237,284 - - - 822,240 -
266,015 1,478,818 475,181 103,845 185,521 3,714 449,011
11,981 - - - - -
(57,011) (369,229) (297,869) (104,433) (197,605) - (449,011)
57,011 357,248 297,869 104,433 (197,605 - 449,011
209,004 1,121,570 177,312 (588) (12,084) (3,714) -
221,473 - (177,312) 588 142.940 35,408 -
$ 430,477 1,121,570 - - 130,856 31,694 -
88
Public
Quimby Safety
5,875,672
209,702
6,085,374
Arts in
Public South Coast
Places Air Quality
Low/ Low/
Moderate Moderate
Income Income
Housing- Housing- Totals
AB 939 PA No. 1 PA No. 2 2006 2005
- 9,126,550 4,962,474 14,089,024 10,282,664
- - - 1,187,931
-
1,187,931
-
- 368,427 - -
-
6,244,099
1,921,978
- - 42,490 - -
-
3,799,269
1,578,451
403 33,282 5,586 - 334,912
341,917
948,498
270,211
_ _ _ - -
-
818,526
825,292
_ - 284,205
15,320
299,525
520,243
- - - - 1,320,719
301,131
1,621,850
2,381,602
_ _ - - 310,227
-
310,227
12,392
403 401,709 48,076 1,187,931 11,376,613
5,620,842
29,318,949
17,792,833
6,515 19,120
37,877 -
44,392 19.120
- 2,050,445 769,275 2,845,355
3,553,188
- - - 1,643,324
1,412,084
- - - 37,877
60,429
- 2,050,445 769,275 4,526,556
5,025,701
6,085,374
403
357,317
28,956 1,187,931 9,326,168
4,851,567
24,792,393
12,767,132
-
2,000
-
- - -
-
13,981
2,000
(529,701)
-
(226,920)
- (3,945,802)
(1,808,298)
(7,985,879)
(11,358,934)
- 384,812
384,812
8,566,295
529,701
2,00022�
6,920)
- - (3,560,990)
_1,808,298)
7,587,086
_(2,790,639)
5,555,673
2,403
130,397
28,956 1,187,931 5,765,178
3,043,269
17,205,307
9,976,493
1,993,903
10,587
895,344
149,013 - 9,036,555
9,077,880
21,386,377
11,409,884
7.549,574 12,990 1,025,741 177,969 1,187,931 14.801,733 12,121,149 38,5911684 21,386,377
89
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, 2006
Budget
Original Final
Revenues:
Intergovernmental $
576,200
621,017
Investment income
7,600
7,600
Total revenues
583,800
628,617
Expenditures:
839,235
Current:
624,196
10,580
Public works
583,800
583,800
Total expenditures
583,800
583,800
Excess (deficiency) of revenues
over (under) expenditures
-
44,817
Other financing sources (uses):
Transfers out
-
(140,932)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
- (96,115)
221,473 221.473
$ 221,473 125,358
583,800 -
583,800 -
266,015 221,198
(57,011)
209,004
221,473
430,477
83,921
305,119
305,119
622,200
622,200
7,470
(195,531)
(188,061)
409,534
221,473
Variance with
Prior
Final Budget
Year
Actual
Positive (negative)
Actual
839,235
218,218
624,196
10,580
2,980
5,474
849,815
221,198
629,670
583,800 -
583,800 -
266,015 221,198
(57,011)
209,004
221,473
430,477
83,921
305,119
305,119
622,200
622,200
7,470
(195,531)
(188,061)
409,534
221,473
CITY OF LA QUINTA
Special Revenue Funds
Library Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2006
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Intergovernmental
$ 1,527,800
1,527,800
1,716,102
188,302 -
Investment income
3,000
3,000
-
(3,000) -
Total revenues
1,530,800
1,530,800
1,716,102
185,302 -
Expenditures:
Current:
Public works
843,605
843,605
237,284
606,321 -
Total expenditures
843,605
843,605
237,284
606,321 -
Excess (deficiency) of revenues
over (under) expenditures
687,195
687,195
1,478,818
791,623 -
Other financing sources (uses):
Transfers in
-
-
11,981
11,981 -
Transfers out
-
(509,373)
(369,229)
140,144
Net change in fund balances
687,195
177,822
1,121,570
943,748 -
Fund balances at beginning of year
-
-
-
- -
Fund balances at end of year
$ 687,195
177,822
1,121,570
943,748 -
91
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, 2006
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
$ 205,010 517,307
205,010 517,307
Variance with
Prior
Final Budget
Year
Actual Positive (negative
Actual
475,181 (42,126)
30,000
475,181 (42,126)
30,000
(205,010 (517,307) (297,869) 219,438 (197,239)
(205,010) (517,307) (297,869) 219,438 (197,239)
177,312 177,312 (167,239)
(177,312) (177,312) (177,312) - (1� 0,073]
$(177,312) (177,312) - 177,312 (177,312
92
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, 2006
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
Budget
Original Final
$ 100,000 100,000
700 700
100,700 100,700
(101,400) (101,400) (104,433) (3,033) (100,000
(101,400) (101,400)
(700) (700)
588 588
$ (112) (112)
93
(10� 4,433) (3,033) (100,000)
(588) 112 588
588 - -
- 112 588
Variance with
Prior
Final Budget
Year
Actual
Positive (negative)
Actual
100,000
-
100,000
3,845
3,145
588
103,845
3,145
100,588
(101,400) (101,400) (104,433) (3,033) (100,000
(101,400) (101,400)
(700) (700)
588 588
$ (112) (112)
93
(10� 4,433) (3,033) (100,000)
(588) 112 588
588 - -
- 112 588
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, 2006
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
Budget
Original Final
$ 198,942 198,942
2,200 2,200
201,142 201,142
(201,142 (344,082) (197,605) 146,477 (37,427)
(201,142) (344,082
- (142,940)
142,940 142,940
$ 142,940 -
LZ!
(197,605) 146,477 (37,427)
(12,084) 130,856 142,940
142,940 - -
130,856 130,856 142,940
Variance with
Prior
Final Budget
Year
Actual
Positive (negative)
Actual
177,250
(21,692)
177,250
8,271
6,071
3,117
185,521
(15,621)
180,367
(201,142 (344,082) (197,605) 146,477 (37,427)
(201,142) (344,082
- (142,940)
142,940 142,940
$ 142,940 -
LZ!
(197,605) 146,477 (37,427)
(12,084) 130,856 142,940
142,940 - -
130,856 130,856 142,940
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, 2006
Revenues:
Special assessments
Total revenues
Expenditures:
Current:
Public works
Total expenditures
Net change in fund balances
Budget
Original Final
$ 842,200 842,200
842,200 842,200
842,200 842,200
842,200 842,200
Fund balances at beginning of year 35,408 35,408
Fund balances at end of year $ 35,408 35,408
95
Variance with Prior
Final Budget Year
Actual Positive (negative) Actual
818,526
818,526
822,240
822,240
(3,714)
35,408
31,694
(23,674)
(23,674)
19,960
19,960
(3,714)
825,292
825,292
789,884
789,884
35,408
(3,714 35,408
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, 2006
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
(2,056,829) (449,011) 1,607,818
- (2,056,829) (449,011) 1,607,818
96,100 - - -
$ 96,100 - -
Variance with Prior
Budget
Final Budget Year
Original Final
Actual Positive (negative) Actual
$ 96,100 2,056,829
449,011 1,607,818)
96,100 2,056,829
449,011 (1,607,818) -
(2,056,829) (449,011) 1,607,818
- (2,056,829) (449,011) 1,607,818
96,100 - - -
$ 96,100 - -
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, 2006
Revenues:
Developer fees
Investment income
Total revenues
Other financing sources (uses):
Transfers out
(687,481 (529,701) 157,780 (289,716)
Total other financing
Variance with
Prior
Budget
(687,481)
Final Budget
Year
Original Final
Actual
Positive (negative;
Actual
Fund balances at beginning of year 1,993,901
1,993,901
1,993,901 -
$ 800,000 4,605,015
5,875,672
1,270,657
1,667,144
5,700 110,000
209,702
99,702
21,438
805,700 4,715,015
6,085,374
1,370,359
1,688,582
(687,481 (529,701) 157,780 (289,716)
Total other financing
sources (uses) -
(687,481)
(529,701) 157,780
(289,716)
Net change in fund balances 805,700
4,027,534
5,555,673 1,528,139
1,398,866
Fund balances at beginning of year 1,993,901
1,993,901
1,993,901 -
595,035
Fund balances at end of year $ 2,799,601
6,021,435
7,549,574 1,528,139
1,993,901
97
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, 2006
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Investment income $
100
100
403
303
174
Total revenues
100
100
403
303
174
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)
(1,900)
403
2,303
174
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
2,403
2,303
2,174
Fund balances at beginning of year
10,587
10,587
10,587
-
8,413
Fund balances at end of year $
10,687
10,687
12,990
2,303
10,587
U1.1
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, 2006
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Current:
Planning and
development
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Budget
Original Final
$ 97,500
97,500
7,600
23,000
105,100
120,500
288,058 308,201
- 226,920
288,058 535,121
6,515
37,877
44,392
(6,515)
308,201
189,043
490,729
60,429
60,429
(182,958) (414,621) 357,317 771,938 209,667
Net change in fund balances (182,958) (414,621)
Fund balances at beginning of year 895,344 895,344
Fund balances at end of year $ 712,386 480,723
�S
(226,920) (226,920)
Variance with
Prior
130,656
Final Budget
Year
Actual
►sitive (negative;
Actual
368,427
270,927
254,834
33,282
10,282
15,262
401,709
281,209
270,096
6,515
37,877
44,392
(6,515)
308,201
189,043
490,729
60,429
60,429
(182,958) (414,621) 357,317 771,938 209,667
Net change in fund balances (182,958) (414,621)
Fund balances at beginning of year 895,344 895,344
Fund balances at end of year $ 712,386 480,723
�S
(226,920) (226,920)
(79,011)
130,397 545,018
130,656
895,344 -
764,688
1,025,741 545,018
895,344
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, 2006
Revenues:
Intergovernmental
Investment income
Total revenues
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
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
$ 39,900
39,900
42,490
2,300
2,300
5,586
42,200
42,200
48,076
26,600 26,600 19,120
26,600 26,600 19,120
15,600 15,600 28,956
15,600
15,600
28,956
149,013
149,013
149,013
$ 164,613
164,613
177,969
100
2,590
3,286
5,876
7,480
7,480
13,356
13,356
13,356
227,682
3,146
230,828
12,878
12,878
217,950
(198,983)
(198,983)
18,967
130,046
149,013
CITY OF LA QUINTA
Special Revenue Funds
AB 939 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2006
101
Variance with Prior
Budget
Final Budget Year
Original Final
Actual
Positive (negative) Actual
Revenues:
Charges for services $ - -
1,187,931
1,187,931
Total revenues - -
1,187,931
1,157,931 _
Net change in fund balances - -
1,187,931
1,187,931 -
Fund balances at
beginning of year - -
-
_ _
Fund balances at end of year $ - -
1,187,931
1,187,931 -
101
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, 2006
Revenues:
Taxes
Developer fees
Investment income
Rental income
Loan repayments
Miscellaneous
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures 4,820,421 4,572,385 9,326,168 4,753,783 7,036,112
Other financing sources (uses):
Transfers out (3,945,802) (3,945,802) (3,945,802) - (2,478,347)
Proceeds from sale of
capital assets 150,000 447,000 384,812 (62,188) 668,642
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(3,795,802) (3,498,802) (3,560,990)
1,024,619 1,073,583 5,765,178
9,036,555 9,036,555 9,036,555
$10,061,174 10,110,138 14,801,733
102
(62,188)
4,691,595
4,691,595
(1,809,705
5,226,407
3,810,148
9,036,555
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
$ 6,675,400
8,567,604
9,126,550
558,946
6,773,423
50,900
360,000
334,912
(25,088)
80,270
276,000
276,000
284,205
8,205
310,574
-
1,080,000
1,320,719
240,719
2,048,855
-
-
310,227
310,227
12,392
7,002,300
10,283,604
11,376,613
1,093,009
9,225,514
2,181,879
5,711,219
2,050,445
3,660,774
2,189,402
2,181,879
5,711,219
2,050,445
3,660,774
2,189,402
Excess (deficiency) of revenues
over (under) expenditures 4,820,421 4,572,385 9,326,168 4,753,783 7,036,112
Other financing sources (uses):
Transfers out (3,945,802) (3,945,802) (3,945,802) - (2,478,347)
Proceeds from sale of
capital assets 150,000 447,000 384,812 (62,188) 668,642
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(3,795,802) (3,498,802) (3,560,990)
1,024,619 1,073,583 5,765,178
9,036,555 9,036,555 9,036,555
$10,061,174 10,110,138 14,801,733
102
(62,188)
4,691,595
4,691,595
(1,809,705
5,226,407
3,810,148
9,036,555
CITY OF LA QUINTA
Special Revenue Funds
Low/Moderate Income Housing Project Area No. 2 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2006
Revenues:
Taxes
Investment income
Rental income
Repayment of loans
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
$ 3,445,900 4,707,594
4,962,474
275,300 275,300
341,917
- 15,000
15,320
- 112,500
301331
3,721,200 5,110,394 5,620,842
5,469,735 6,608,693 769,275
5,469,735 6,608,693 769,275
254,880
66,617
320
188,631
510,448
5,839,418
5,839,418
Prior
Year
Actual
3,509,241
140,742
209,669
332,747
4,192,399
1,350,908
1,350,908
Excess (deficiency) of
revenues over (under)
expenditures (1,748,535) (1,498,299) 4,851,567 6,349,866 2,841,491
Other financing sources (uses):
Transfers out (1,706,754) (1,846,754) (1,808,298) 38,456 (7,363,357)
Proceeds from sale of capital assets - - - - 7,897,653
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(1,706,754) (1,846,754) (1,808,298)
(3,455,289) (3,345,053) 3,043,269
9,077,880 9,077,880 9,077,880
$ 5,622,591 5,732,827 12,121,149
103
38,456
6,388,322
6,388,322
534,296
3,375,787
5,702,093
9,077,880
(This page intentionally left blank)
104
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. I 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.
105
CITY OF LA QUINTA
Debt Service Funds
Redevelopment Agency Project Area No. 1 Fund
Schedule of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Year ended June 30, 2006
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Payments under pass-through
obligations
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other f nancing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund b glances at end of year
Budget
Original Final Actual
Variance with
Prior
Final Budget
Year
Positive (negative)
Actual
$ 26,701,600
34,270,416
36,506,201
2,235,785
27,093,693
93,100
300,000
652,351
352,351
255,628
26,794,700
34,570,416
37,158,552
2,588,136
27,349,321
537,800
537,800
300,248
237,552
365,810
3,340,636
3,340,636
3,240,636
100,000
3,121,114
8,893,382
8,930,643
8,930,643
-
8,967,948
15,264,787
18,673,357
19,309,927
(636,570)
14,421,097
28,036,605
31,482,436
31,781,454
(299,018)
26,875,969
(1,241,905) 3,087,980 5,377,098 2,289,118
3,945,802 3,945,802 3,945,802
(3,465,227) (4,374,737) (4,374,737)
480,575
(428,935)
(428,935)
(761,330)
2,659,045
4,948,163
4,601,741
4,601,741
4,601,741
$ 3,840,411
7,260,786
9,549,904
106
2,289,118
2,289,118
473,352
2,478,347
(2,438,029}
40,318
513,670
4,088,071
4,601,741
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, 2006
Revenues:
Taxes
Investment income
Total revenues
Expenditures:
Current:
Planning and development
Debt service:
Principal
Interest
Payments under pass-through
obligations
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Tnnsfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances (deficit) at
be- i-ning of year
Fund balances (deficit) at end of year
195,970
195,970
Variance with
Prior
Budget
100,000
Final Budget
Year
Original Final
Actual
Positive (negative)
Actual
$ 13,783,600 18,830,375
19,849,893
1,019,518
14,036,962
- 275,000
459,695
1841,695
174,272
13,783,600 19,105,375
20,309,588
1,204,213
14,211,234
195,970
195,970
154,439
41,531
180,374
100,000
100,000
200,000
(100,000)
195,000
2,012,526
1,624,272
1,524,272
100,000
1,782,844
11,726,665
16,020,307
16,748,364
(728,057)
11,335,224
14,035,161
17,940,549
18,627,075
(686,526)
13,493,442
(251,561)
1,164,826
1,682,513
517,687
717,792
1,706,754
7,998,654
7,998,654
-
4,142,039
(1,706,754)
(1,706,754)
(1,706,754
-
_ (994,948)
-
6,291,900
6,291,900
-
3,147,091
(251,561)
7,456,726
7,974,413
517,687
3,864,883
(7,239,414)
(7,239,414)
(7,239,414)
-
(11,104,297)
L21490,975)
217,312
734,999
517,687
(7,239,414)
107
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, 2006
Revenues:
Investment income
Rental income
Miscellaneous
Total revenues
Expenditures:
Current:
General government
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
Fun,! balances at end of year
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
Actual
$ - - 231 231 58
680,575 680,575 680,575 - 681,220
15,000 15,000 11,015 (3,985) 3,481
695,575 695,575 691,821 (3,754) 684,759
15,000
15,000
11,015
3,985
5,231
1,065,000
1,065,000
1,065,000
-
315,000
4,787,556
4,787,556
4,787,556
-
3,356,269
5,867,556
5,867,556
5,863,571
3,985
3,676,500
(5,171,981)
(5,171,981)
(5,171,750
231
(2,991,741
5,171,981
5,171,981
5,171,981
-
2,990,049
5,171,981
5,171,981
5,171,981
-
2,990,049
-
-
231
231
(1,692)
3,360
3,360
3,360
-
5,052
$ 3,360
3,360
3,591
231
3,360
WV
MAJOR AND NON -MAJOR CAPITAL PROJECTS FUNDS
Capital projects funds account for the financial resources to be used for the acquisition,
construction or improvements of major capital facilities and infrastructure.
The City of La Quinta has the following Major Capital Projects Funds:
Capital Improvement Fund - To account for the planning, design and construction of various
capital projects throughout the City of La Quinta and the Redevelopment Agency.
Redevelopment Agency, Capital Projects Fund Area_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.
Fund, Community Center Fund Street Facility Fund Park Facility Fund Fire Facility Fund — To
account for the accumulation of resources provided through developer fees for the acquisition,
construction, or improvement of the City's infrastructure. The Developer Impact Fee was
adopted by the City Council on August 16, 1999. Six new funds have been established to account
for the specific impact areas of these fees, and are budgeted by the Council through adoption of
the annual Capital Improvement Program budget.
County Library evelopment 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.
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.
109
CITY OF LA QUINTA
Non -Major Capital Projects Funds
Combining Balance Sheet
June 30, 2006
Parks and
Infrastructure Transportation. Recreation
Assets
County
Civic Library Library
Center Development_ Development
Cash and investments $ 625,364 6,738,895 - 2,300,493 -
Cash with fiscal agent - -
Accounts receivable
Prepaid items - - - -
Interest receivable 2,809 30,589 576 10,413 -
Advances to other funds - - - -
Total assets $ 628.173 6,769,484 576 2,310,906
Liabilities and Fund Balances
Liabilities:
Accounts payable $ -
Deposits payable -
Due to other funds -
Advances from other funds -
Total liabilities
Fund balances:
Reserved for:
Prepaid items -
Advances to other funds -
Unreserved:
Designated for
2,260.728 - 2,124,399 -
2,260,728 - 2,124,399 -
capital projects 628,173 6,769,484 - 2,310,906 - -
Undesigated - - 2,260152 - (2,124,399) -
Total fund balances 628,173 6,769,484 2,260,152 2,310,906 (2,124,399) -
Total liabilities and
iii adbalances E 628,173 6.769,484 576 2,310,906 - -
110
Redevelopment Financing
Community Street Park Fire A.D. 2000-1 Agency Authority
Center Facility Facility Facility Phase VI PA No. 2 Projects
Totals
2006 2005
962,374 282,132 66,940 - 941 1,805,387
7,029 12,789,555
12,171,565
- - - - - -
244 244
5,096
- - - - 60,.900
- 60,900
60,900
- - - - - 1,505
- 1,505
-
4,233 1,205 293 - - 7,853
- 57,971
63,616
- - - _ - 979,970
- 979,970
1,122,148
966,607 283,337 67,233 - 941 2,855,615
7,273 13,890,145
13,423,325
941 79,350 80,291 8,170
- 27,835 27,835 27,835
- - - - - 37
979,970 - - - 5,365,097 7,061,027
979,970 941 107.185 _ - 5,473,223 7,097,069
966,607 283,337 67,233 -
- - - (979,970
966,607 283,337 67,233 (979,970)
966,607 283,337 67,233 -
1,505 - 1,505 -
979,970 - 979,970 -
1,766,955 7,273 12,799,968 13,215,994
- - (5,364,521) (6,889,738)
2,748,430 7,273 8,416,922 6,326,256
941 2,855,615 7,273 13,890,145 13,423,325
111
CITY OF LA QUINTA
Non -Major Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2006
County
Parks and Civic Library Library
Infrastructure Transportation Recreation Center Development Development
Revenues:
Developer fees $
-
3,632,186
1,100,676
597,334
460,475
-
Intergovernmental
-
-
-
-
-
-
Investment income
24,204
229,802
6,743
78,524
-
-
Total revenues
24,204
3,861,988
1,107,419
675,858
460,475
-
Expenditures:
Current:
General government
-
-
-
207,455
-
_
Planning and
development
-
-
-
-
Public works
-
-
-
-
'
Debt service:
Interest and fiscal charges
-
110,416
-
86,344
-
Total expenditures
-
110,416
207,455
86,344
-
Excess (deficiency) of
revenues over (under)
expenditures
24,204
3,861,988
997,003
468,403
374,131
-
Other financing sources (uses):
Transfers in
-
-
11,868
-
-
-
Transfers out
(264,622)
(4,295,941)
-
(320,173)
-
(9,881)
Proceeds from sale of capital assets
-
-
-
-
-
Total other financing
sources (uses)
(264,622)
(4,295,941)
11,868
(320,173
-
(9,881)
Net change in fund balances
(240,418)
(433,953)
1,008,871
148,230
374,131
(9,881)
Fund balances (deficit) at
beginning of year
868,591
7,203,437
(3,269,023)
2,162,676
2,498 530
9.881
Fund balances (deficit) at end of year $
628,173
6,769.484
(2,260,152)
2,310,906
2,124,399
-
112
- - 205,708
- - - - 298,794 -
39,039 - -
39,039 298,794 205,708
- 207,455
205,410
- 205,708
193,088
- 298,794
Redevelopment
Financing
162,608
- 947,756
Community
Street
Park
Fire
A.D. 2000-1
Agency
Authority
Totals
-
Center
Facility
Facility
Facility
Phase VI
PA No. 2
Projects
2006
2005
140,640
96,275
20,393
181,254
(13,202,136)
-
-
6,229,233
4,169,178
-
-
-
-
-
-
-
-
190,863
30,254
7,720
1,897
-
4,549
101,147
256
485,096
317,946
170,894
103,995
22,290
181,254
4,549
101,147
256
6,714,329
4,677,987
- - 205,708
- - - - 298,794 -
39,039 - -
39,039 298,794 205,708
- 207,455
205,410
- 205,708
193,088
- 298,794
392,878
_ 235,799
162,608
- 947,756
953,984
170,894
103,915
22,290
142,215
(294,245)
(104,561)
256
5,766,573
3,724,003
_
-
-
_
_
_
11,868
-
-
-
-
-
(17,316)
(6,604,426)
-
(11,512,359)
(13,202,136)
-
-
-
-
-
7,824,584
-
7,824,584
-
-
-
-
-
(17,316)
1,220,158
-
(3,675,907)
(13,202,136)
170,894
103,995
22,290
142,215
(311,561)
1,115,597
256
2,090,666
(9,478,133)
795,713
179,342
44,943
(1,122,185
311,561
1,632,833
7,017
6,326,256
15,804,389
966.607
283,337
67,233
(979,970)
-
2,748,430
7,273
8,416,922
6,326,256
113
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, 2006
114
Variance with
Prior
Budget
Final Budget
Year
Oral
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 218,750
351,324
108
(351,216)
-
Intergovernmental
20,142,681
28,384,186
8,255,422
(20,128,764
921,527
Total revenues
20,361,431
28,735,510
8,255,530
(20,479,980}
921,527
Expenditures:
Capital projects
24,662,770
121,938,279
25,407,673
96,530,606
39,559,080
Debt service:
Principal
172,112
172,112
172,112
-
162,546
Interest and fiscal charges
76,342
76,342
76,342
-
85,908
Total expenditures
24,911,224
122,186,733
25,656,127
96,530,606
39,807,534
Excess (deficiency) of revenues
over (under) expenditures
(4,549,793)
(93,451,223)
(17,400,597)
76,050,626
39,886,007
Other financing sources (uses):
Transfers in
4,549,793
93,451,223
17,412,465
(76,038,758)
38,886,007
Transfers out
-
-
(11,868)
(11,868)
-
Total other financing
sources (uses)
4,549,793
93,451,223
17,400,597
76,050,626
38,886,007
Net change in fund balances
-
-
-
-
-
Fund balances at beginning of year
Fund bal ances at end of year
$
114
CITY OF LA QUINTA
Capital Projects Funds
Redevelopment Agency Project Area No. 1 Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Revenues:
Investment income
Total revenues
Expenditures:
Current:
Planning and development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Year ended June 30, 2006
656,777
Variance with
Prior
Budget
Final Budget
Year
Original Final
Actual Positive (negative)
Actual
558,792
512,500 2,063,378
1,038,028 (1,025,350)
767,036
512,500 2,063,378
1,038,028 (1,025,350)
767,036
656,777
686,777
666,017
20,760
558,792
656,777
686,777
666,017
20,760
558,792
(144,277)
1,376,601
372,011
(1,004,590)
208,244
-
-
913,378
913,378
442,928
(85,000)
(23,454,157)
(6,642,051)
16,812,106
(17,612,949)
(85,000)
(23,454,157)
(5,728,673)
17,725,484
(17,170,021)
(229,277)
(22,077,556)
(5,356,662)
16,720,894
(16,961,777)
30,441,596
30,441,596
30,441,596
-
47,403,373
$ 30,212,319
8,364,040
25,084,934
16,720,894
30,441,596
115
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, 2006
Revenues:
Investment income
Total revenues
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
- (51,443,787) (2,773,994) 48,669,793 _(753,613)
- (51,443,787) (2,773,994
(52,603,466) (67,175,387) (1,247,780)
58,094,701 58,094,701 58,094,701
$ 5,491,235 (9,080,686 56,846,921
116
48,669,793 (753,613)
65,927,607 437,719
- 57,656,982
65,927,607 58,094,701
Variance with
Prior
Bud!et
Final Budget
Year
Original
Final
Actual
Positive (ne atg ive)
Actual
$ 1,418,400
1,418,400
2,246,441
828,041
1,191,332
1,418,400
1,418,400
2,246,441
828,041
1,191,332
54,021,866
17,150,000
720,227
16,429,773
-
54,021,866
17,150,000
720,227
16,429,773
-
(52,603,466)
(15,731,600)
1,526,214
17,257,814
1,191,332
- (51,443,787) (2,773,994) 48,669,793 _(753,613)
- (51,443,787) (2,773,994
(52,603,466) (67,175,387) (1,247,780)
58,094,701 58,094,701 58,094,701
$ 5,491,235 (9,080,686 56,846,921
116
48,669,793 (753,613)
65,927,607 437,719
- 57,656,982
65,927,607 58,094,701
CITY OF LA QUINTA
Capital Projects Funds
Infrastructure Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
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
Year ended June 30, 2006
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
Actual
$ 600
20,000
24,204
4,204
16,302
600
20,000
24,204
4,204
16,302
(8,751)
(721,353)
(264,622)
456,731
(296,820)
(8,751)
(721,353)
(264,622)
456,731
(296,820)
(8,151)
(701,353)
(240,418)
460,935
(280,518)
868,591
868,591
868,591
-
1,149,109
$ 860,440
167,238
628,173
460,935
868,591
117
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, 2006
118
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 1,096,200
1,096,200
3,632,186
2,535,986
2,239,022
Investment income
66.300
165,000
229,802
64,802
131,328
Total revenues
1,162,500
1,261,200
3,861,988
2,600,788
2,370,350
Expenditures:
Current:
Public works
-
-
-
-
392,878
Total expenditures
-
-
-
-
392,878
Excess (deficiency) of revenues
over (under) expenditures
1,162,500
1,261,200
3,861,988
2,600,788
1,977,472
Other financing sources (uses):
Transfers out
(4,057,578)
(7,322,318)
(4,295,941
3,026,377
(1,113,129
Total other financing
sources (uses)
(4,057,578)
(7,322,318)
(4,295,941)
3,026,377
(1,113,129
Net change in fund balances
(2,895,078)
(6,061,118)
(433,953)
5,627,165
864,343
Fund balances at beginning of year
7,203,437
7,203,437
7,203,437
-
6,339,094
Fund balances at end of year
$ 4,308,359
1,142,319
6,769,484
5,627,165
7,203,437
118
CITY OF LA QUINTA
Capital Projects Funds
Parks and Recreation Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2006
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 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
Variance with
13iclget _ Final Budget
Original Final Actual Positive (negative)
$ 446,000 446,000 1,100,676 654,676
- - 6,743 6.743
446,000 446,000 1,107,419 661,419
Prior
Year
Actual
717,856
3,953
721,809
-
110,000
110,416
(416)
81,740
-
110,000
110,416
(419
81,740
446,000
336,000
997,003
661,003
640,069
-
-
11,868
11,868
-
(113,358)
-
113,358
(47,440)
-
(113,358)
11,868
125,226
(47,440)
446,000
222,642
1,008,871
786,229
592,629
(3,269,023)
(3,269,023)
(3,269,023)
-
(3,861,652)
$$ (2,8�
(3,046,381)
(2,260,152)
786,229
(3,269,023)
119
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, 2006
Revenues:
Developer fees
Investment income
Total revenues
Expenditures:
Current:
General government
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers out
Total other financing
sources (uses)
Budget
Original Final
Variance with
Final Budget
Actual Positive (negative)
Prior
Year
Actual
$ 256,000
256,000
597,334
341,334
576,248
-
50,000
78,524
28,524
37,658
256,000
306,000
675,858
369,858
613,906
204,173
204,173
207,455
(3,282)
205,410
204,173
204,173
207,455
3,282
205,410
51,827 101,827
468,403
366,576
408,496
Fund balances at beginning of year
- (3,146,118)
(320,173
2,825,945
(135,607)
2,214,503
- (3,146,118)
(320,173)
2,825,945
(135,607)
Net change in fund balances
51,827
(3,044,291)
148,230
Fund balances at beginning of year
2,162,676
2,162,676
2,162,676
Fund balances at end of year
2,214,503
(881,615)
2,310,906
120
3,192,521
3,192,521
272,889
1,889,787
2,162,676
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, 2006
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
beginnin of year
Fund balances (deficit) at
end of year
Budget
Original Final
$ 177,500 177,500
Variance with Prior
Final Budget Year
Actual Positive (negative) Actual
460,475 282,975 297,033
- - 24,750
177.500 177,500 460,475 282,975 321,7
- 82,000
86,344
(4,344)
8,482
82,000
86,344
(4,344
8,482
177,500 95,500 374,131 278,631 313,301
- - - - (3,746,450)
- - - - (3,746,450)
177,500 95,500 374,131 278,631 (3,433,149)
(2,498,530) (2,498,530) (2,498,530) - 934,619
$ (2,321,030) (2,403,030) (2,124,399) 278,631 (2,498,530)
121
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, 2006
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Intergovernmental $ - - - - 190,863
Investment income - - b - 1,699
Total revenues - - - - 192,562
Other financing sources (uses):
Transfers out - - (9,881)
Total other financing
sources (uses) - - (9,881
Net change in fund balances - - (9,881)
Fund balances at beginning of year 9,881 9,881 9,881
Fund balances at end of year $ 9,881 9,881 -
122
(9,881 59� 0,863)
(9,881) (590,863)
(398,301)
- 408,182
9,881
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, 2006
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Developer fees
$ 37,000
37,000
140,640
103,640
138,328
Investment income
17.600
17,600
30,254
12,654
13,669
Total revenues
54,600
54,600
170,894
116,294
151,997
Fund balances at beginning of year
795,713
795.713
795,713
--
643,716
Fund balances at end of year
$ 850,313
850,313
966,607
116,294
795,713
123
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, 2006
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
Revenues:
Developer fees
$ 44,100
44,100
96,275
52,175
30,495
Investment income
3,900
3,900
7,720
3,820
3,075
Total revenues
48,000
48,000
103,995
55,995
33,570
Fund balances at beginning of year
179,342
1791,342
179,342
-
145,772
Fund balances at end of year
$ 227,342
227,342
283,337
55,995
179,342
124
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, 2006
125
Variance with
Prior
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Developer fees
$ 11,000
11,000
20,393
9,393
7,182
Investment income
1,000
1,000
1,897
897
792
Total revenues
12,000
12,000
22,290
10,290
7,974
Fund balances at beginning of year
44,943
44,943
44,943
-
36,969
Fund balances at end of year
$ 56,943
56,943
67,233
10,290
44,943
125
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, 2006
Revenues:
Developer fees
Total revenues
Expenditures:
Debt service:
Interest and fiscal charges
Total expenditures
Net change in fund balances
Fund balances (deficit)
at beginning of year
Fund balances (deficit)
at end of year
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
74,500 74,500 181,254 106,754 163,014
74,500 74,500 181,254 106,754 163,014
- 37,000
39,039
(2,039)
24,310
- 37,000
39,039
(2,039)
24,310
74,500 37,500
142,215
104,715
138,704
(1,122,185) (1,122,185)
(1,122,185)
-
(1,260,889)
$(1,047,685) (1,084,685)
(979,970)
104,715
(1,122,185
126
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, 2006
Revenues:
Investment income
Total revenues
Expenditures:
Current:
Public Works
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
Variance with Prior
Budget Final Budget Year
Original Final Actual Positive (negative) Actual
$ - 3,608 4,549 941 6,559
3,608 4,549 941 6,559
- - 298,794 (298,794) -
- 298,794 (298,794) -
3,608 (294,245) (297,853) 6,559
(17,316) (17,316 - (147,372)
(17,316) (17,316)
- (13,708) (311,561)
311,561 311,561 311,561
$ 311,561 297,853 -
127
(147,372)
(297,853) (140,813)
- 452,374
(297,853) 311,561
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, 2006
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
- (6,802,032)
1,220,158
(184,865) (6,943,997)
1,115,597
Variance with
Prior
$ 1,447,968 (5,311,164)
Budget
Final Budget
Year
Original
Final
Actual
Positive (negative)
Actual
Revenues:
Investment income $
37,100
-80,000
101,147
21,147
38,475
Total revenues
37300
80,000
101,147
21,147
38,475
Expenditures:
Current:
Planning and development
221,965
221,965
205,708
16,257
193,088
Total expenditures
221.965
221,965
205,708
16,257
193,088
Excess (deficiency) of revenues
over (under) expenditures
(184,865)
(141,965)
(104,561)
37,404
(154.613)
Other financing sources (uses):
Transfers out
-
(6,802,032)
(6,604,426)
197,606
(1,341,046)
Proceeds from sale of capital asset
-
7,824,584
7,824,584
-
-
Total other financing
sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
- (6,802,032)
1,220,158
(184,865) (6,943,997)
1,115,597
1,632,833 1,632,833
1,632,833
$ 1,447,968 (5,311,164)
2,748,430
128
197,606
235,010
235,010
(1,341,046)
(1,495,659)
3,128,492
1,632,833
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, 2006
129
Variance with
Prior
Budget
Final Budget
Year
Original Final Actual
Positive (negative)_
Actual
Revenues:
Investment income
$ - - 256
256
93
Total revenues
- - 256
256
93
Expenditures:
Debt service:
Interest and fiscal charges
- - -
-
48,076
Total expenditures
- - -
-
48,076
Net change in fund balances
- - 256
256
(47,983)
Fund balances at
beginning of year
7,017 7,017 7,017
-
55,000
Fund balances at end of year
$ 7,017 7,017 7,273
256
7,017
129
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to
departments within the City. Costs of materials and services used are accumulated in this fund
and charged to the user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Re lacement 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.
t
130
C &OF LA QUINTA
Internal Service Funds
Combining Statement of Net Assets
Juu nkj% 006
�
Park
Lr Equipment Information Equipment
Replacement Technology and Facility
Totals
Assets
Current assets:
Cash and investments
$ 2,867,338
694,953
519,323
4,081,614
3,426,605
Prepaid items
-
50,724
-
50,724
49,086
Interest receivable
12,638
3,271
2,293
18,202
17,894
Due from other governments
-
-
-
-
-
Capital assets, net
858,837
435,437
14,840,945
16,135,219
15,223,945
Total assets
3,738,813
1,184,385
15,362,561
20,285,759
18,717,530
Liabilities,I
I
7
r/
° N3
Current liabilities:
6�
Accounts payable
10,041
1,997
12,038
20,986
Accrued salaries and benefits
-
2,332
�'' ° -
2,332
4,024
Total liabilities
10,041
4,329
-
14,370
25,010
Net Assets
Invested in capital assets, 858,837 435,437 14,840,945 16,135,219 15,223,945
net of related debt
Unrestricted 2,869,935 744,619 521,616 4,136,170 3,468,575
Total net assets $ 3,728,772 1,180,056 15,362,561 20,271,389 18,692,520
131
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, 2006
Park
Equipment Information Equipment
Replacement Technology and Facility
Totals
2006 2005
$ 331,312
426,018
250,000
1,007,330
981,180
331,312
426,018
250,000
1,007,330
981,180
-
79,468
-
79,468
71,734
64,210
-
-
64,210
42,473
121,231
-
-
121,231
116,565
8,370
33,463
-
41,833
109,956
-
97,300
-
97,300
89,564
169,216
65,025
381,865
616,106
624,570
15,882
14,481
-
30,363
93,993
378,909
289,737
381,865
1,050,511
1,148,855
(47,597)
136,281
(131,865)
(43,181)
(167,675)
Non-operating revenues (expenses):
Investment income
96,653
26,701
17,052
140,406
66,322
Gain (loss) on sale of capital assets
10,210
(3,941)
-
6,269
8,501
Total non-operating
revenues (expenses)
106,863
22,760
17,052
146,675
74,823
Income (loss) before transfers
and capital contributions
59,266
159,041
(114,813)
103,494
(92,852)
Capital contributions
317,164
151,094
1,007,117
1,475,375
14,602,365
Changes in net assets
376,430
310,135
892,304
1,578,869
14,509,513
Net assets at beginning of year
3,352,342
869,921
14,470,257
18,692,520
4,183,007
Net assets at end of year
$ 3,728,772
1,180,056
15,362,561
20,271,389
18,692,520
132
CITY OF LA QUINTA
Internal Service Funds
Combining Statement of Cash Flows
Year ended June 30, 2006
Park
Equipment Information Equipment
Replacement Technology and Facility
Cash flows from operating activities:
Totals
2006 2005
Cash received from other customers
$ 331,312
426,018
250,000
1,007,330
981,180
Cash payments to suppliers for
goods and services
(213,753)
(151,770)
-
(365,523)
(505,603)
Cash payments to emplyees
-
(81,160)
-
(81,160
(67,710
Net cash provided by (used for)
operating activities
117,559
193,088
250,000
560,647
407,867
Cash flows from capital and related activities:
Insurance proceeds
9,985
-
9,985
18,294
Cash received from the sale of capital assets
225
-
-
225
350
Cash paid to acquire capital assets
(41,946)
(14,000)
-
55,946
(145,333
Net cash provided by (used for)
capital and related activities
(31,736)
14,000
45,736
(126,689)
Cash flows from investing activities:
Interest received on investments
97,817
26,272
16,009
140,098
61,035
Net cash provided by (used for)
investing activities
97.817
26,272
16,009
140,098
61,035
Net increase (decrease) in cash
and cash equivalents
183,640
205,360
266,009
655,009
342,213
Cash and cash equivalents at beginning of year
2,683,698
489,593
253,314
3,426,605
3,084,392
Cash and cash equivalents at end of year
$ 2,867,338
694,953
519,323
4,081,614
3,426,605
Reconciliation of operating income to net cash
provided by operating activities:
Operating income (loss) $
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Adjustments:
(Increase) decrease in due from
other governments
(Increase) decrease in prepaid items
(Increase) decrease in other assets
Increase (decrease)in accounts payable
Increase (decrease) in accrued liabilities
Net cash provided by (used for)
(47,597) 136,281 (131,865) (43,181) (167,675)
169,216 65,025 381,865 616,106 624,570
3,932
- (1,638) (1,638) (49,086)
(19,100)
(4,060) (4,888) - (8,948) 15,226
1,692 (1,692) -
operating activities $ 117,559 193,088 250,000 560,647 407,867
Noncash capital, financing and investing activities:
Fixed asset disposals $ - - - - (65,496)
Fixed assets contributed by other funds 317,164 151,094 1,007,117 1,475,375 14,602,365
133
(This page intentionally left blank)
134
AGENCY FUNDS
Agency funds are used to account for assets held by the City as an agent for an individual,
private organizations and other governmental units. The agency funds amid their purposes are as
follows:
The City of La Quinta has the following agency funds:
Assessment District No. 88-1, 89-2, 90-1, 91-1, 92-1, 97-1, 2000-1 - To account for assessments
paid to the City for debt service payments on bond issues used to finance sewer improvements.
IRS'.
Assets
Cash and investments
Taxes receivable
Interest receivable
Total assets
Liabilities
Deposits payable
Total liabilities
CITY OF LA QUINTA
Agency Funds
Combining Balance Sheet
June 30, 2006
Assessment
Assessment
Assessment
Assessment
District
District
District
District
No. 88-1
No. 89-2
No. 90-1
No. 91-1
136
Assessment
Assessment
Assessment
872.807
1,253,941
District
District
District
Totals
No. 92-1
No. 97-1
No. 2000-1
2006
2005
295,735
131,706
411,569
839,010
1,221,946
5,281
2,852
22,180
30,313
25,829
1,233
542
1,709
3,484
6,166
302,249
135,100
435,458
872,807
1,253,941
302,249
135,100
435,458
872.807
1,253,941
302,249
135,100
435,458
872,807
1,253,941
137
Balance at
June 30. 2006
Deposits payable $ 93,651 1,084 (94,735) -
ASSESSMENT DISTRICT NO. 89-2
Assets
CITY OF LA QUINTA
Cash and investments
Agency Funds
1,089 (59,804) -
Taxes receivable
Combining Statement of Changes in Assets and Liabilities
- (100) -
Year ended June 30, 2006
304
- (304) -
Balance at
$ 59,119
1,089 (60,208) -
June 30, 2005 Additions
Deletions
ASSESSMENT DISTRICT NO. 88-1
Deposits payable
Assets
685 (59,804) -
Cash and investments
$ 92,159 2,576
(94,735)
Taxes receivable
1,021 -
(1,021)
Interest receivable
471 -
(471)
Total assets
$ 93,651 2,576
(96,227)
Liabilities
Balance at
June 30. 2006
Deposits payable $ 93,651 1,084 (94,735) -
ASSESSMENT DISTRICT NO. 89-2
Assets
Cash and investments
$ 58,715
1,089 (59,804) -
Taxes receivable
100
- (100) -
Interest receivable
304
- (304) -
Total assets
$ 59,119
1,089 (60,208) -
Liabilities
Deposits payable
$ 59,119
685 (59,804) -
ASSESSMENT DISTRICT NO. 90-1
Assets
Cash and investments
$ 108,996
4,407 (113,403) -
Taxes receivable
1,951
- (1,951) -
Interest receivable
666
- (666) -
Total assets
$ 111,613
4,407 (116,020) -
Liabilities
Deposits payable
$ 1 11,613
1,790 (113,403) -
(Continued)
138
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
Balance at Balance at
June 30, 2005 Additions Deletions June 30, 2006
ASSESSMENT DISTRICT NO. 91-1
Assets
Cash and investments
$
127,511
6,848
(134,359)
-
Taxes receivable
4,681
-
(4,681)
-
Interest receivable
656
-
(656)
-
Total assets
$
132,848
6,848
(139,696)
-
Liabilities
Deposits payable
$
132,848
1,511
(1341359)
-
ASSESSMENT DISTRICT NO. 92-1
Assets
Cash and investments
$
304,888
157,550
(166,703)
295,735
Taxes receivable
943
5,281
(943)
5,281
Interest receivable
1,496
1,233
(1,496)
1,233
Total assets
$
307,327
164,064
(169,142)
302,249
Liabilities
Deposits payable
$
307,327
155,111
(160,189)
302,249
ASSESSMENT DISTRICT NO. 97-1
Assets
Cash and investments
$
126,104
68,884
(63,282)
131,706
Taxes receivable
3,450
2,852
(3,450)
2,852
Interest receivable
612
542
(612)
542
Total assets
$
130,166
72,278
(67,344)
135,100
Liabilities
Deposits payable
$
130.166
64,822
(59,888)
135,100
(Continued)
139
CITY OF LA QUINTA
Agency Funds
Combining Statement of Changes in Assets and Liabilities
(Continued)
Balance at Balance at
June 30, 2005 Additions Deletions June 30, 2006
ASSESSMENT DISTRICT NO. 2000-1
Assets
Cash and investments
$ 403,573
493,402
(485,406)
411,569
Taxes receivable
13,683
22,180
(13,683)
22,180
Interest receivable
1,961
1,709
(1,961
1,709
Total assets
$ 419,217
517,291
(501,050)
435,458
Liabilities
1,253,941
768,553
(1,149,687)
872,807
Deposits payable
$ 419,217
477,758
(461,517)
435,458
TOTALS -ALL AGENCY FUNDS
Assets
Cash and investments
$
1,221,946
734,756
(1,117,692)
839,010
Taxes receivable
25,829
30,313
(25,829)
30,313
Interest receivable
6,166
3,484
(6,166
3,484
Total assets
$
1,253,941
768,553
(1,149,687)
872,807
Liabilities
Deposits payable
$
1,253,941
702,761
(1,083,895)
872,807
Total liabilities
$
1,253,941
702,761
(1,083,895
872,807
140
CAPITAL ASSETS USED IN THE.
OPERATION OF GOVERNMENTAL FUNDS
141
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental
Funds by Source '
June 30, 2006 and 2005
Governmental funds capital assets:
Land
Buildings and improvements
Equipment and furniture
Infrastructure
Construction in progress
Total governmental funds capital assets
Investment in general fixed assets by source:
Capital projects funds
Redevelopment agency
2006 2005
$ 48,953,107
53,670,027
24,151,306
15,311,445
710,756
1,555,329
369,031,337
345,559,519
26 827.331
27.794.113
469.673.8.7 443.890.433
421,547,237 390,946,913
48,126.600 59,943,520
Total government funds capital assets $469,667L837 443,890,433
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.
142
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Function and Activity
June 30, 2006
Buildings and Equipment
Land Improvements and Furniture
Function and Activity
General government:
City manager $ 2,387,354 121,868 98,366
Economic development - - 10,208
Personnel 24,299 -
Central services - - 45,878
City clerk - - 135,366
Total general government 2,387,354 146,167 289,818
Public safety:
Police
Building and safety
administration
Emergency services
Fire
Civic center building
operations
Total public safety
Community services:
Community services
administration
Parks and recreation 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
105,109
10,030
- - 33,475
101,392 3,572,400 -
- 9,712,796 64,599
101,392 13,285,196 213,213
Construction
Infrastructure in Progress Totals
2,607,588
- 10,208
24,299
45,878
135,366
2,823,339
105,109
10,030
- 33,475
3,673,792
752,902 10,530,297
752,902 14,352,703
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.
143
2,044,255
96,798
2,141,053
- 2,019,454
5,289
-
2,024,743
- 8,135,289
-
-
-
8,135,289
- 10,154,743
5,289
2,044,255
96,798
12,301,085
- -
48,025
-
-
48,025
46,464,361 560,000
-
-
474,417
47,498,778
46,464,361 560,000
48,025
-
474,417
47,546,803
- -
5,374
-
-
5,374
-
18,555
344,144,951
24,990,731
369,154,237
- 5,200
22,618
3,912,060
4,352
3,944,230
- -
107,864
18,930,071
508,131
19,546,066
5,200
154,411
366,987,082
25,503,214
392,649,907
$ 48,953,107 24,151,306
710,756
369,031,337
26,827,331
469,673,837
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.
143
CITY OF LA QUINTA
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity'
June 30, 2006
Public safety:
Police
Building and safety administration
Emergency services
Fire
Civic center building operations
Total public safety
Community services:
Community services administration
Parks and recreation 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
105,109
Governmental
-
Governmental
10,030
Funds Capital
-
Funds Capital
33,475
Assets
Assets
Function and Activity
July 1, 2005
Additions Deletions
June 30, 2006
General government:
320,172
-
10,530,297
City manager
$ 3,540,588
- (933,000)
2,607,588
Economic development
10,208
39,110 (39,110)
10,208
Personnel
24,299
- -
24,299
Central services
45,878
- -
45,878
City clerk
135,366
- -
135,366
Total general government
3,756,339
39,110 (972,110}
2,823,339
Public safety:
Police
Building and safety administration
Emergency services
Fire
Civic center building operations
Total public safety
Community services:
Community services administration
Parks and recreation 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
105,109
-
-
105,109
10,030
-
-
10,030
33,475
33,475
3,713,792
-
(40,000)
3,673,792
10,210,125
320,172
-
10,530,297
14,072,531
320,172
140,{]ilii}
14,352,703
1,781,247
369,025
(9,219)
2,141,053
7,804,171
8,666,408
(8,335,290)
8,135,289
2,024,743
-
-
2,024,743
3,077
622,485
(625,562)
-
11,613,238 9,657,918 (8,970,071) 12,301,085
48,025 - - 48,025
57,409,814 8,970,093 (18,881,129) 47,498,778
57,457,839 8,970,093 (18,881,129) 47,546,803
5,374 - - 5,374
341,810,592 30,429,943 (3,086,298) 369,154,237
2,060,205 1,884,025 - 3,944,230
13,114,313 8,454,319 (2,022,566} 19,546,066
356,990,484 40,768,287 (5,108,864) 392,649,907
$ 443,890,431 59,755,58033,9( 72.174) 469,673,837
'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.
144
STATISTICAL SECTION
145
CITY OF LA QUINTA
Net Assets by Component
Last Six Fiscal Years
(accrual basis of accounting)
Fiscal Year
TABLE 1
Total governmental activities net assets 1 293,557,276 312,657.635 314,146,335 338,644,794 337,144,057 404,848,116
Business -type activities:
Invested in capital assets,
net of related debt $ - - - - 41,300,846 42,075,172
Restricted
Unrestricted - - - - (626,658) (1,665,646)
Total business -type activities net assets - - 40,674,188 40,409,526
Primary government:
Invested in capital assets,
net of related debt $ 217,419,724 195,474,945 225,818,022 249,059,500 274,661,975 295,634,289
Restricted 45,438,930 74,156,691 40,038,313 44,415,966 43,421,857 65,159,623
Unrestricted 30,698,622 43,025,999 48,290,000 45,169,328 59,734,413 84,463,730
Total primary government net assets $ 293,557,276 312,657,635 314,146,335 338,644,794 377,818,245 445,257,642
The City of La Quinta implemented GASB 34 for the fiscal year ended June 30
2001. Information prior to the implementation of GASB 34 is not available.
Source: City of La Quinta
2001
2002
2003
2004
2005
2006
Governmental activities:
Invested in capital assets,
net of related debt
$ 217,419,724
195,474,945
225,818,022
249,059,500
233,361,129
253,559,117
Restricted
45,438,930
74,156,691
40,038,313
44,415,966
43,421,857
65,159,623
Unrestricted
30,698,622
43,025,999
48,290,000
45,169,328
60,361,071
86,129,376
Total governmental activities net assets 1 293,557,276 312,657.635 314,146,335 338,644,794 337,144,057 404,848,116
Business -type activities:
Invested in capital assets,
net of related debt $ - - - - 41,300,846 42,075,172
Restricted
Unrestricted - - - - (626,658) (1,665,646)
Total business -type activities net assets - - 40,674,188 40,409,526
Primary government:
Invested in capital assets,
net of related debt $ 217,419,724 195,474,945 225,818,022 249,059,500 274,661,975 295,634,289
Restricted 45,438,930 74,156,691 40,038,313 44,415,966 43,421,857 65,159,623
Unrestricted 30,698,622 43,025,999 48,290,000 45,169,328 59,734,413 84,463,730
Total primary government net assets $ 293,557,276 312,657,635 314,146,335 338,644,794 377,818,245 445,257,642
The City of La Quinta implemented GASB 34 for the fiscal year ended June 30
2001. Information prior to the implementation of GASB 34 is not available.
Source: City of La Quinta
CITY OF LA QUINTA TABLE 2
Changes in Net Assets
Last Six Fiscal Years
(accrual basis of accounling)
Fiscal Year
2001 2002 2003 2004 2005 2006
Expenses:
4,319,778
3,595,906
Governmental activities:
(6,526,600)
(15,299,740)
General government
$ 3,146,699
3,241,576
Public safety
5,776,628
7,522,532
Community services
940,881
1,41 1,943
Planning and development
6,146,998
7,110,125
Public works
5,968,911
6,434,239
Interest on long-term debt
5,861,632
7,791,759
Total govemmenlal activities expenses
27.841,749
33,512.174
Business -type activilies:
3,778,583
3,093,588
Golf Course
4,249,753
3,967,003
Total business -type activities expenses
625,190
654,696
Total primary government expenses
_ 27,841 749
33,512,174
Program revenues:
1,496,620
1,473,217
Governmental activities:
3,578,206
3,006,097
Charges for services:
-
(21,397)
General government
214,601
253,891
Public safety
2,860,434
2,544,528
Community services
123,960
170;865
Planning and development
709,033
565,098
Public works
1,429,942
1,316,373
Operating grants and contributions
1,601,716
1,699,255
Capital grants and contributions
14,773,463
11.662,424
Total governmental activities
31.023.11S
_33,695,242
program revenues
21,31S,149
_ 18,212,434
Business -type activities:
24,496,515
18,395,502
Charges for services:
LWII.834
Golf Course
S 24,496,515
18,395,502
Total business -type activities
50,852.859
(continued)
program revenues
(continued)
(continued)
Total primary government
(18,250;959)
(14,150,873)
program revenues21,315
ij 49
18,212,434
(78$.455)
(continued)
(continued)
Net revenues (expenses):
4,319,778
3,595,906
Govemmenlal activities
(6,526,600)
(15,299,740)
Business -type activities
9,065,244
1,321,825
Total net revenues (expenses)
16,526,600]
(15,299,740b
General revenues and other changes in net
assets:
5,752,239
Governmental activities:
6,785,759
6,003,013
Taxes:
10,006,335
8.5$5,401
Property taxes
1,162,634
1,450,196
Tax increment
15,324,183
18,899,329
Sales tax
3,778,583
3,093,588
Transient occupancy tares
4,249,753
3,967,003
Franchise tares
625,190
654,696
Other taxes
515,310
479,822
Motor vehicle in lieu, unrestricted
1,496,620
1,473,217
Investment income
3,578,206
3,006,097
Gain (loss) on sale of capital assets
-
(21,397)
Miscellaneous
292,036
692,691
Transfers
611,278
662,737
Total governmental activities
31.023,115
33,695,242
Business -type activities:
2,815,703
3,021,379
Investment income
1,799,503
1,935,578
Transfers
5,160405 r
12090,143
Total business -type activities
}3,918;901
12.585,364
Total primary government
31.023.11S
_33,695,242
Changes in net assets
-
Govemmenlal activities
24,496,515
18,395,502
Business -type eclivilies
LWII.834
Total primary government
S 24,496,515
18,395,502
3,203,462
4,319,778
3,595,906
4,229,871
8,547,005
10,256,463
8,512,875
9,065,244
1,321,825
1,446,999
1.,157,141
1,426,033
19,083,860
7,526,977
5,752,239
5,906,915
6,785,759
6,003,013
9,101,582
10,006,335
8.5$5,401
9,658;774
15, 265,031
15494y6
41_497,112
39,212 009
43,384,794
46,129,034
1,877391
4,523 ._146
-
1,877,291
4,523,1.16
47.497,312
39,212,009
45,262,085
50,652,200
298,749
337,376
445,663
717,849
2,917,866
4,004,621
4,438,115
4,168,206
205,806
252,677
252,501
428,947
611,278
662,737
754,938
1,873,676
1,594,225
1,813,993
2,815,703
3,021,379
1,797,031
1,799,503
1,935,578
3,603,173
5,160405 r
12090,143
18,591.423
}3,918;901
12.585,364
20,961,059
2.9.233,921
47,732,131
-
_ 1,091,836
3.520,728
LWII.834
3,120.726
17,585,360
20,761,050
30,325,757
50,852.859
(continued)
(continued)
(continued)
(continued)
(34,911,952)
(18,250;959)
(14,150,873)
1,603,077
(78$.455)
1402418
j34,9k1,952}
19,250 959
114,936,328)
204,659
1,800,616
2,198,141
2,579,245
3,679,079
21,191,832
24,450,337
24,443,112
35,168,329
4,345,381
5,240,037
6,773,566
7,613,075
4,036,290
4,261,767
4,831,338
5,437,238
690,544
895,810
1,185,087
1,044,470
700,154
867,058
1,392,795
1,326,618
1,768,091
1,608,151
2,453,642
2,740,233
1,353,868
1,738,505
4,336,050
6,319,502
•
-
3,717,470
1,967,292
513,876
1,489,612
2,397,474
1,943,093
-
-
t (41 A59,443] '
(1,137,203)
36.400,652
42;749.418
12,630,136
66,101,726
553
-
' 41,459,643 '
_ .1,137,203
_ 41,439,643
1,137,756
_36,400,653
42,749,418
54,109.779
.67,239.482
1,488,700
24,498,459
(1,500,737)
67,704,803
-
40,674,188
(2(A,�
1,488,704)
24,498,459
39,173,451
47,440,141
The City of La Quinia implemented GASB 34 for the fiscal year ended June 30, 2001.
Information prior to the implementation of GASB 34 is not available.
The transfer was for land & golf course improvements transferred to the Enterprise Fund
Source: Cityof La Quinia
147
The City of La Quinta implemented GASB 34 for the fiscal year ended June 30, 2001
Information nrior to the implementation of GASB 34 is not available.
Source: City of La Quinta
148
CITY OF LA QUINTA
TABLE 3
Changes
in Net Assets - Governmental Activities
Last Six Fiscal Years
(accrual basis of accounting)
Fiscal Year
2001
2002
2003
2004
2005
2006
Expenses:
General government
$ 3,146,699
3,241,576
3,203,462
4,319,778
3,595,906
4,229,871
Public safety
5,776,628
7,522,532
8,547,005
10,256,463
8,512,875
9,065,244
Community services
940,881
1,411,943
1,321,825
1,446,999
1,157,141
1,426,033
Planning and development
6,146,998
7,110,125
19,083,860
7,526,977
5,752,239
5,906,915
Public works
5,968,911
6,434,239
6,785,759
6,003,013
9,101,582
10,006,335
Interest on long-term debt
5,861,632
7,791,759
8,555,401
9,658,779
15,265,051
15,494,656
Total governmental activities expenses
27,841,749
33,512,174
47,497,312
39,212,009
43,384,794
46,129,054
Program revenues:
Charges for services:
General government
214,601
253,891
298,749
337,376
445,663
717,849
Public safety
2,860,434
2,544,528
2,917,866
4,004,621
4,438,115
4,168,206
Community services
123,960
170,865
205,806
252,677
252,501
428,947
Planning and development
709,033
565,098
611,278
662,737
754,938
1,873,676
Public works
1,429,942
1,316,373
1,594,225
1,813,993
2,815,703
3,021,379
Operating grants and contributions
1,601,716
1,699,255
1,797,031
1,799,503
1,935,578
3,603,173
Capital grants and contributions
14,375,463
11,662,424
5,160,405
12,090,143
18,591,423
33,918,901
Total governmental activities
program revenues
21.315,149
18,212,434
12,585,360
20,961,050
29,233,921
47,732,131
Net program revenues (expenses)
(6,526,600}
(15,299,740)
(34,911,952.}
(1$,250;959}
14,873
1,603,077
General revenues and other changes in net assets:
Taxes:
Property taxes
1,162,634
1,450,196
1,800,616
2,198,141
2,579,245
3,679,079
Tax increment
15,324,183
18,899,329
21,191,832
24,450,337
24,443,112
35,168,329
Sales tax
3,778,583
3,093,588
4,345,381
5,240,037
6,773,566
7,613,075
Transient occupancy taxes
4,249,753
3,967,003
4,036,290
4,261,767
4,831,338
5,437,238
Franchise tax
625,790
654,696
690,544
895,810
1,185,087
1,044,470
Othertax
515,310
479,822
700,154
867,058
1,392,795
1,326,618
Motor vehicle in lieu, unrestricted
1,496,620
1,473,217
1,768,091
1,608,151
2,453,642
2,740,233
Investment income
3,578,206
3,006,097
1,353,868
1,738,505
4,336,050
6,319,502
Gain (loss) on sale of capital assets
-
(21,397)
-
3,717,470
1,967,292
Miscellaneous
292,036
692,691
513,876
1,489,612
2,397,474
1,943,093
Transfers
-
-
-
-
(41,459,643)
(1,137,203)
Total governmental activities
31,023,115
33,695,242
36,400,652
42,749,418
12,650,136
66,101,726
Changes in net assets -
governmental activities
S 24,496,515
18,395,502
1,488,700
24,498,459
(1,500,737)
67,704,803
The City of La Quinta implemented GASB 34 for the fiscal year ended June 30, 2001
Information nrior to the implementation of GASB 34 is not available.
Source: City of La Quinta
148
CITY OF LA QUINTA
Changes in Net Assets - Business -type Activities
Last Two Fiscal Years
(accrual basis of accounting)
The City of La Quinta implemented the business type activities in FY
2004/2005.
I
The transfer was for land & golf course improvements
transferred to the Enterprise Fund.
2 This was the first full year of operations for the Golf Course
Source: City of La Quints
149
TABLE 4
Fiscal Year
2005
2006
Expenses:
Golf Course
1,877,291 2
4,523,146
Total business -type activities expenses
1,877,291
4,523,146
Program revenues:
Charges for services:
Golf Course
1,091,836 2
3,120,728
Total business -type activities
program revenues
1,091,836
3,120,728
Net revenues (expenses)
(785,455)
(1,402,418)
General revenues and other changes in net assets:
Investment income
-
553
Transfers
-
164,190
Capital contributions a
41,459,643
973,013
Total business -type activities
41,459,643
1,137,756
Changes in net assets - business -type activities
40,674,188
(264,662)
The City of La Quinta implemented the business type activities in FY
2004/2005.
I
The transfer was for land & golf course improvements
transferred to the Enterprise Fund.
2 This was the first full year of operations for the Golf Course
Source: City of La Quints
149
TABLE 4
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Six Fiscal Years
(modified accrual basis of accounting)
TABLE 5
The City of La Quinta has elected to show only six years of data for this schedule
I The increase was primarily the result of the issuance of the 2004 Financing Authority bonds.
Source: City of La Quinta
150
Fiscal Year
2001
2002
2003
2004
2005
2006
General fund:
Reserved
$ 11,746,211
12,897,893
21,099,910
29,210,757
32,412,590
23,210,506
Unreserved
23,878,259
27,981,710
26,584,773
25,494,479
31,514,377
53,058,618
Total general fund
$ 35,624,470
40,879,603
47,684,683
54,705,236
63,926,967
76,269,124
All other governmental funds:
Reserved
$ 13,480,545
45,508,787
38,404,982
98,476,000
99,751,862
95,515,445
Unreserved, reported in:
Special revenue funds
6,352,995
12,107,305
9,382,431
9,286,459
19,267,394
36,475,093
Debt service funds
(6,800,030)
(5,622,884)
(6,182,506)
(11,099,245)
(7,236,054)
738,590
Capital projects funds
18,712,013
12,423,247
16,368,205
28,600,240
1,831,415
6,499,827
Total all other governmental funds
$ 31,745.523
64,416,455
57,973,112
125,263,454
113,614,617
139,228,955
The City of La Quinta has elected to show only six years of data for this schedule
I The increase was primarily the result of the issuance of the 2004 Financing Authority bonds.
Source: City of La Quinta
150
The City of La Quinta has elected to show only six years of data, for this schedule
Source: City of La Quinta
151
CITY OF LA QUINTA
TABLE 6
Changes in Fund
Balances of Governmental Funds
Last Six Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2001
2002
2003
2004
2005
2006
Revenues:
Taxes
$ 36,605,534
43,011,931
50,326,811
58,301,082
68,175,347
89,704,947
Licenses and permits
2,057,423
1,857,691
1,982,127
3,096,145
3,226,167
5,145,430
Charges for services
1,998,589
1,757,744
2,302,759
2,619,578
3,402,602
3,367,989
Developer fees
2,592,398
2,298,647
3,021,245
5,718,073
6,091,156
12,473,440
Intergovernmental
9,400,340
9,583,451
7,194,521
11,858,627
10,242,876
18,585,468
Investment income
4,893,919
4,135,009
3,368,709
3,735,984
6,215,291
9,946,212
Special assessments
782,610
757,619
780,259
816,045
825,292
818,526
Rental income
1,067,076
1,001,389
1,094,510
1,118,744
1,201,463
1,103,600
Loan repayments
-
-
-
-
2,381,602
1,621,850
Other
502,717
584,197
483,777
1,359,539
528,903
637,054
Total revenues
59,900,606
64,987,678
70,554,718
88,623,817
102,290,699
143,404,516
Expenditures
Current:
General government
3,275,624
3,161,596
3,344,407
4,099,376
3,970,921
4,644,954
Public safety
5,636,154
7,610,308
8,344,428
9,672,708
12,364,583
13,029,187
Community services
817,460
1,067,837
993,964
1,025,397
1,104,509
1,248,308
Planning and development
6,344,764
10,693,374
7,804,294
7,480,421
5,719,373
5,847,563
Public works
2,613,928
2,897,312
3,685,050
4,536,589
6,206,769
6,987,014
Capital projects
14,456,314
57,342,978
16,057,578
43,331,919
40,012,387
25,445,550
Debt service:
Principal retirement
4,510,420
11,453,487
2,931,952
3,610,538
3,793,660
4,777,748
Interest and fiscal charges
5,942,929
7,017,016
9,469,314
13,961,721
14,355,577
15,554,612
Payment to bond escrow
-
-
-
1,591,107
-
-
Payments under pass-through obli
10,949,381
13,669,166
17,561,994
21,448,147
25,756,321
35,958,291
Total expenditures
54,546,974
11419I3,074
70,192,981
110,757,923
113,284,100
113,493,227
Excess (deficiency) of
revenues over (under)
expenditures
5,353,632
(49,925,396
361,737
(22,134,106)
(10,993,401}
29,911,289
Other financing sources (uses):
Issuance of tax allocation bonds
88,000,000
-
26,400,000
-
-
Issuance of revenue bonds
-
90,000,000
_
Payment to bond escrow
-
-
(19,955,000)
-
_
Transfers in
17,911,515
64,255,590
23,887,256
154,613,662
49,248,081
35,828,335
Transfers out
(17,911,515)
(65,255,590)
(23,887,256)
(154,613,662)
(49,248,081)
(35,992,525)
Proceeds from sale of capital assets
-
146,603
-
8,566,295
8,209,396
Total other financing
sources (uses)
-
87,146,603
-
96,445,000
8,566,295
8,045.200
Net change in fund balances
$ 5,353,632
37,221,207
361,737
74,310,894
$ 2,427,106)
37,956,495
Debt service as a percentage of
noncapital expenditures
53.4%
55.8%
55.4%
57.9%
59.9%
63.9%
The City of La Quinta has elected to show only six years of data, for this schedule
Source: City of La Quinta
151
CITY OF LA QUINTA TABLE 7
Assessed Value and Estimated Actual Value of Taxable Property
Last Six Fiscal Years
(in dollars)
NOTE:
In 1978 the voters of the State of California passed Proposition 13
which limited property taxes to a total maximum rate of 1% based upon
the assessed value of the property being taxed. Each year, the assessed
value of property may be increased by an "inflation factor" (limited to a
maximum increase of 2%). With few exceptions, property is only re-
assessed at the time that it is sold to a new owner. At that point, the
new assessed value is reassessed at the purchase price of the property
sold. The assessed valuation data shown above represents the only data
currently available with respect to the actual market value of taxable
property and is subject to the limitations described above.
Source: County of Riverside Auditor -Controller
152
Entire Ci
(including
Redevelopment_ Apcncy)
Fiscal Year
Taxable
Ended
Less:
Assessed
June 30
Secured
Unsecured
Exemptions
Value
Percent Change
2001
3,162,945,116
30,599,753
(50,149,068)
3,143,395,801
N/A
2002
3,789,678,041
32,607,713
(54,726,303)
3,767,559,451
19.86%
2003
5,412,382,710
40,940,877
(95,420,075)
5,357,903,512
42.21%
2004
6,289,493,552
44,014,548
(113,037,003)
6,220,471,097
16.10%
2005
7,856,383,375
72,554,357
(115,071,146)
7,813,866,586
25.62%
2006
9,986,151,525
88,740,840
(99,245,721)
9,975,646,644
27.67%
NOTE:
In 1978 the voters of the State of California passed Proposition 13
which limited property taxes to a total maximum rate of 1% based upon
the assessed value of the property being taxed. Each year, the assessed
value of property may be increased by an "inflation factor" (limited to a
maximum increase of 2%). With few exceptions, property is only re-
assessed at the time that it is sold to a new owner. At that point, the
new assessed value is reassessed at the purchase price of the property
sold. The assessed valuation data shown above represents the only data
currently available with respect to the actual market value of taxable
property and is subject to the limitations described above.
Source: County of Riverside Auditor -Controller
152
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency
Last Fiscal Year
(in dollars)
Redevelopment Agency Project Area 1
Fiscal Year Taxable
Ended Less: Assessed Base Taxable
June 30 Secured Unsecured Exemptions Value Year Increment
2006 3,962,433,928 29,248,534 (11,604,295) 3,980,078,167 199,398,233 3,780,679,934
Redevelopment agency Project Area 2
Fiscal Year Taxable
Ended Less: Assessed Base Taxable
June 30 Secured Unsecured Exemptions Value Year Increment
2006 2,132,426,502 32,999,788 (54,125,422) 2,111,300,868 95,182,755 2,016,118,113
Source: County of Riverside Auditor -Controller
153
TABLE 8
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This
1.00% is shared by all taxing agencies for which the subject property resides within.
Overlapping rates include assessment district and debt service charges.
Source: County of Riverside Auditor Controller's Office
Direct rate from Tax Rate Area (TRA) 020-059 provided by Hill Coren & Cone and overlapping debt rates from
California Municipal Statistics
2 Direct rate taken From an analysis by the City of La Quinta Finance Department staff of all 65 TRA's in the Project area
and overlapping rates provided by California Municipal Statistics
Direct rake taken From an analysis by the City of La Quinta Finance Department staff of all 54 TRA's in the Project area
and overlapping rates provided by California Municipal Statislies
154
CITY OF LA QUINTA
TABLE 9
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Fiscal Year
City
Redevelopment
Redevelopment
Non -Project Area
Project Area 1
Project Area 2
2006 t
2006 2
2006 3
Direct Rates:
City of La Quinta
0.0760
0.0000
0.0000
Redevelopment agency Project Area 1
0.0000
0.5830
0.0000
Redevelopment agency Project Area 2
0.0000
0.0000
0.2860
County of Riverside
0.1960
0.3470
0.3470
County Free Library
0.0250
00010
0.0010
County Structure Fire Protection
0.0540
0.0030
0.0020
Coachella Valley (CV) Unified School
0.4320
0.0170
0.0000
Desert Sands Unified School
0.0000
00160
0.2000
Desert Community College
0.0700
0.0030
0.0420
Riverside County Office of Education
0.0380
0.0030
0.0230
Riverside County Regional Park & Open Space
0.0040
0.0000
0.0000
CV Public Cemetery
0.0032
0.0000
0.0000
CV Mosquito
0.0127
0.0120
00150
CV Park & Recreation
0.0192
0.0010
0.0060
CV Water District
0.0250
0.0130
0.0770
CV Resource Conservation
0.0003
0.0000
0.0000
CVWD District 1 Debt Service
0.0118
0.0000
0.0000
CV WD Storm Water Unit
0.0320
0.0010
00010
Total Direct Rate
0.9992
1.0000
1.0000
Overlapping Rates:
County of Riverside
0.01136
0.01136
0.01136
Riverside County Office of Education
0.01136
0.01136
0-01136
Riverside County Pension Obligation
0.01136
0.01136
001136
Desert Sands Unified
0.15461
0.15461
0.15461
Coachella Valley Unified School District
0.23195
0.23195
0.23195
Coachella Valley Water District
0.47946
0.47946
0.47946
Coachella Valley Recreation & Park District
0.09855
0.09855
0.09855
Desert Comm College District
0.05620
005620
0.05620
Total Overlapping Rate
1.0548
1.0548
1.0548
Total Direct and Overlapping Rate
2.0540
2.0548
2.0548
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This
1.00% is shared by all taxing agencies for which the subject property resides within.
Overlapping rates include assessment district and debt service charges.
Source: County of Riverside Auditor Controller's Office
Direct rate from Tax Rate Area (TRA) 020-059 provided by Hill Coren & Cone and overlapping debt rates from
California Municipal Statistics
2 Direct rate taken From an analysis by the City of La Quinta Finance Department staff of all 65 TRA's in the Project area
and overlapping rates provided by California Municipal Statistics
Direct rake taken From an analysis by the City of La Quinta Finance Department staff of all 54 TRA's in the Project area
and overlapping rates provided by California Municipal Statislies
154
CITY OF LA QUINTA
Principal Property Taxpayers
Current Year and Nine Years Ago
(in dollars)
$ 416,206,024 4.17%
NOTE :The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
I The information for 1997 is not available.
Source: HdL Coren & Cone
155
TABLE 10
2006
19971
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable Taxable
Assessed
Assessed
Assessed Assessed
Taxpayer
Value
Value
Value Value
KSL Desert Resort, Inc
$ 224,603,777
2.25%
TD Desert Development
44,944,922
0.45%
Wal Mart Real Estate Business Trust
25,435,449
0.25%
Quarry @ La Quinta
24,939,778
0.25%
Aventine Development
21,537,220
0.22%
Target Corporation
18,226,228
0.18%
Aries Investment
14,952,616
0.15%
CNL Desert Resort
14,263,447
0.14%
Lowes Hardware
13,865,658
0.14%
Miraflores
13,436,929
0.13%
$ 416,206,024 4.17%
NOTE :The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
I The information for 1997 is not available.
Source: HdL Coren & Cone
155
TABLE 10
CITY OF LA QUINTA
Property Tax Levies and Collections
Last Fiscal Year
( in dollars)
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2006 60,716,047 73,097,360 120.39% 2,092,065 75,189,425 123.84%
NOTE:
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule
also includes amounts collected by the City and Redevelopment Agency that were passed -through to other
agencies.
Source: County of Riverside Auditor Controller's Office
156
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type
Last Fiscal Year
(in dollars)
Governmental Activities
Reimbursement Agreement
Compensated Absences
Due to Coachella Valley Unified School District
Due to County of Riverside
Developer Agreement
Tax Allocation Bonds Project Area 1
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds l
City Hall Lease Revenue Bonds
Unamortized Discount and Issuance Costs
Total Governmental
Business -type Activities
Capital Leases
Total Business -type activities
Total Primary Government
Population - State Department of Finance January 1, 2006
Number of Households - 2006 City of La Quinta
Median Household Income 2004
Fiscal Year Ended
2006
328,311
608,266
5,186,627
1,850,000
776,030
141,785,000
6,130,000
89,265,000
6,245,000
(5,852,460)
246,321,774
1,090,602
1,090,602
$ 247,412,376
38,340
18,762
$ 65,906
Percentage of Personal Income 20.01%
Debt Per Capita $ 6,453
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
I The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 &
2 low & moderate income tax increment.
157
TABLE 12
CITY OF LA QUINTA TABLE 13
Ratio of General Bonded Debt Outstanding
Last Fiscal Year
(In Dollars)
Outstanding General Bonded Debt
Fiscal Year City Hall Lease 2004 Tax Percent of
Ended Lease Local Agency Allocation Assessed Per
June 30 Obligation Revenue Bonds Bonds Total Value 1 Capita
2006 6,245,000 89,265,000 147,915,000 243,425,000
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
Source: City of La Quinta
158
2.44% $ 6,349
TABLE 14
CITY OF LA QUINTA
Direct and Overlapping Debt
June 30, 2006
City Assessed Valuation $ 4,178,848,597
Redevelopment Agency Incremental Valuation 5,796,798,047
Total Assessed Valuation $ 9,975,646,644
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage
Outstanding
Overlapping
Applicable
Debt 6/30/06
Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District
5.620%
$ 69,111,886
3,884,088
Coachella Valley Unified School District
23.195%
67,092,458
15,562,096
Desert Sands Unified School District (DSUSD)
7.573%
257,268,984
19,482,980
DSUSD Lease Tax Obligations
7.573%
19,545,000
1,480,143
Coachella Valley County Water District I.D. No. 55
80.456%
5,380,000
4,328,533
Coachella Valley County Water District I.D. No. 58
6.549%
2,525,000
165,362
DSUSD Community Facilities District No. 1
100.000%
2,055,000
2,055,000
City of La Quinta 1915 Act Bonds
100.000%
2,445,000
2,445,000
Coachella Valley Water District Assessment District No. 68
86.247%
2,385,000
2,056,991
Total overlapping debt repaid with property taxes
427,808,328
51,460,193
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
1.136%
$ 630,525,566
7,162,770
Riverside County Pension Obligations
1.136%
396,845,000
4,508,159
Riverside County Board of Education COP
1.136%
11,240,000
127,686
Coachella Valley Unified School District COP
23.195%
32,155,000
7,458,352
DSUSD COP
7.573%
14,005,000
1,060,599
Coachella Valley County Water District I.D. No. 71 COP
8.299%
8,530,000
707,905
Coachella Valley Recreation and Park District COP
9.855%
2,615,000
257,708
Total overlapping other debt
1,095,915,566
21,283,179
Total overlapping debt
$ 1,095,915,566
72,743,372
City direct debt
247,412,376
Total direct and overlapping debt
$ 320,155,748
Notes:
' For debt repaid with property taxes, the percentage of overlapping debt
applicable is estimated using taxable
assessed
property values. Applicable percentages were estimated by determining
the portion of another governmental
unit's
taxable assessed value that is within the city's boundaries and dividing
it by each unit's
total taxable assessed
value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
Source: California Municipal Statistics, Inc.- overlapping debt
Source: City of La Quinta - City Direct debt
159
CITY OF LA QUINTA
Legal Debt Margin Information
Last Six Fiscal Years
( in dollars )
Fiscal Year
TABLE 15
2001 2002 2003 2004 2005 2006
Assessed valuation $ 3,143,395,801 3,767,559,451 5,357,903,512 6,220,471,097 7,813,866,586 9,975,646,644
Debt limit percentage 15% 15% 15% 15% 15% 15%
Debt limit 471,509,370 565,133,918 803,685,527 933,070,665 1,172,079,988 1,496,346,997
Total net debt applicable to limit:
General obligation bonds
Legal debt margin $ 471,509,370 565,133918 803,685,527 933,070,665 1,172,079,988 1,496,346_,997
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
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 Quinta Finance Department based upon the Assessed valuation received from the
County of Riverside Auditor Controllers Office
Fiscal Year
Ended
June 30
2006
TABLE 16
CITY OF LA QUINTA
Pledged -Revenue Coverage
Last Fiscal Year
(In Dollars)
Tax Allocation Bonds - Project Area 1
Tax Less: Other Net Tax Debt Service
Increment Debt Payments Increment Principal Interest Coverage 1
36,506,201 20,638,731 15,867,470 2,500,000 7,805,905 1.54
Tax Allocation Bonds - Project Area 2
Fiscal Year
Ended Tax Less: Other Net Tax Debt Service
June 30 Increment Debt Payments Increment Principal Interest Coverage 1-
2006 19,849,893 17,325,411 2,524,482 100,000 319,168 6.02
Fiscal Year
Ended
June 30
2006
Fiscal Year
Ended
June 30
2006
2004 Local Agency Revenue Bonds
Tax Less: Other Net Tax Debt Service
—Increment' Debt Payments Increment Principal InterestCoverage
14,089,024 0 14,089,024 735,000 4,436,981 2.72
Local Agency Revenue Bonds (City Hall Project)
Lease Less: Other Net Lease Debt Service
Revenue 2 Debt Payments Revenue Principal Interest Coverage
680,575 0 680,575 330,000 350,575 1.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements.
1 Tax increment has been reduced by other debt payments, which may or may not be subordinated to Tax
Allocation Bonds
2 Lease revenues consist of payments from the City General Fund, Civic Center Development Impact Fee Fund
and the Redevelopment Agency Capital Projects Fund
3 Tax increment revenues from both Project Area 1 and Project Area 2 Low & Moderate Income Funds are
used to pay the annual debt service payments.
161
CITY OF LA QUINTA
Demographic and Economic Statistics
Last Calendar Year
Calendar
Year
2006
City Land (Sq Miles)
(3)
35.1
Population
(1)
38,340
Median Household Income (in dollars)
(4)
$65,906
Number of Dwelling Units
(3)
18,762
Persons per Household
(3)
2.855
Average Income per person per household
$23,084
Labor Force
(2)
14,500
Employment
(2)
14,100
Unemployment Rate
(2)
2.76%
Median age
(3)
36
Sources: (1) State of California Department of Finance - January 1, 2006
(2) State of California Economic Development Department website June 2006
(3) City of La Quinta Building & Safety and Community Development Departments
(4) Desert Wheeler's Newsletter City Overview 05/06
162
TABLE 17
TABLE 18
CITY OF LA QUINTA
Principal Employers
Current Year and Nine Years Ago
"Total Employment" as used above represents the total employment of all employers located
within City limits with over 100 employees
Source: Riverside County Economic Development Department and the City of La Quinta
Source: Riverside County Economic Development Department and the City of La Quinta
I The Albertsons Grocery Story was sold to Stater Brothers and is no longer located in the City
2 The total City employment and % applicable for 1997 was not available
163
2006
19972
Percent of
Percent of
Number of
Total
Number of Total
Employer
Activity
Employees
Employment
Employees Employment
La Quinta Resort & Club
Hotel & Golf Resort :
1,600
11.35%
1,500
Wal-Mart Super Center
Retail
800
5.67%
250
Rancho La Quinta
Golf Resort
700
4.96%
PGA West Club
Golf Resort
500
3.55%
1,100
Home Depot
Retailer
240
1.70%
-
Imperial Irrigation District
Public Utility
200
1.42%
Lowe's Home Improvement Retailer
150
1.06%
Albertsons
Grocery Store
-
0.00%
126
Stater Brother's
Grocery Store
150
1.06%
Tradition Golf Club
Golf Resort
100
0.71%
Ralph's
Grocery Store
88
0.62%
100
Total employment listed
4,528
32.11%
3,076 Not Available
Total City Employment - July
1
14,100
Not Available
"Total Employment" as used above represents the total employment of all employers located
within City limits with over 100 employees
Source: Riverside County Economic Development Department and the City of La Quinta
Source: Riverside County Economic Development Department and the City of La Quinta
I The Albertsons Grocery Story was sold to Stater Brothers and is no longer located in the City
2 The total City employment and % applicable for 1997 was not available
163
CITY OF LA QUINTA
Full-time City Employees
by Function
Last Two Fiscal Years
TABLE 19
Source: City of La Quinta
NOTE: The City of La Quinta contracts with the County of Riverside for Police
Services and with the California Department of Forestry through a contract with the
County of Riverside for Fire Services. In addition the City -owned Golf Course is
operated by Landmark Golf. These positions have not been included as these
positions are not City employees.
164
Fiscal Year
Fiscal Year
Ending
Ending
June 30
June 30
Function
2005
2006
Administration
8.00
9.00
City Clerk
5.00
5.00
Finance
8.00
9.00
Community services
8.00
10.25
Building and Safety
21.00
22.00
Community Development
9.00
12.00
Public Works
23.50
26.25
Golf Course
0.50
0.50
Total
83.00
94.00
Source: City of La Quinta
NOTE: The City of La Quinta contracts with the County of Riverside for Police
Services and with the California Department of Forestry through a contract with the
County of Riverside for Fire Services. In addition the City -owned Golf Course is
operated by Landmark Golf. These positions have not been included as these
positions are not City employees.
164
CITY OF LA QUINTA
Operating Indicators
by Function
Last Fiscal Year
Finance:
Number of Active Business Licenses
Number of Active Animal Licenses
Number of Accounts Payable Checks Processed
Number of investment purchases
Par value of investments
Number of cleared checks
Number of outgoing bank wires
Public works:
Encroachment permits issued
Request for services
Building & Safety:
Permits:
Single family Detached
Single family Attached
Residential Pool
Wall/Fence
Other
Total Permits
Code Compliance:
Animal Control Incidents Handled
Vehicle abatements
Garage Sale Permits
Weed abatements
Nuisance abatements
Community Services:
Library activities:
Library Volume
Library books checked out
Library Cards Issued
Number of School Children Visiting Library
Library Volunteer Hours
Senior Center:
Number of visits
Senior Center Volunteer Hours
Recreation activities:
Participants:
Leisure Classes
Special events
Adult Sports
Golf course:
Golf rounds played
Average $ Green fee
Community Development:
Number of residential units approved
Commercial square footage approved
Source: City of La Quinta
165
2006
6,821
2,334
4,696
39
$327,417,000
5,081
202
304
618
1,044
227
866
1,502
1,607
5,246
1,901
909
1,190
141
1,611
42,050
55,002
5,550
745
1,891
14,305
3,481
1,373
4,668
3,402
38,934
71.12
1,063
533,726
TABLE 20
CITY OF LA QUINTA
Capital Asset Statistics
by Function
Last Fiscal Year
Fiscal Year
Ending
June 30
2006
Public works:
Streets (miles)
118.40
Bikepaths (miles)
9.70
Streetlights
73
Traffic signals
44
Traffic Signs
2,799
Bridges
12
Parks and recreation:
Parks 12
Park Acreage 234
Senior Center 1
Library 1
Golf Course:
Municipal golf courses
Source: City of La Quinta
IWO
TABLE 21
TABLE 22
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2006
Company Name
Policy Number
Coverage
Limits
Term
Premium
Hartford
PEBAO7068
Employee Dishonesty,
$1,000,000
12/03/05 - 06
$2,976
Forgery, Computer Fraud
Lexington
111-5569
All Risk Property Insurance
40,900,000
07/01/06 - 07
39,428
Including Auto Physical Damage
(Excluding Earthquake)
Landmark Amer
LHQ410782
Earthquake & Flood
7,500,000
02/07/06 - 07
. 53,135
Real & Personal Property
Including
Contingent Tax Interruption
California
Certificate #5
Comprehensive General $0 Deductible Retention
07/01/06 - 07
253,672
Joint Powers
Liability
$50 Million
Insurance Authority
California
Certificate
Worker's Compensation
5,000,000
07/01/06 - 07
-- 235,397
Joint Powers #5009-056
Insurance Authority
167
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168