2006-2007 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF LA OU:NTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2007•
ElLance
So it
Lunghard
LLP
Certified Public Accountants
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CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2007
Prepared By
FINANCE DEPARTMENT
JOHN M. FALCONER
Director of Finance
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2007
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Number
Letterof Transmittal .............................................. ........ ....................................................................
-
List of Principal Officialsviii
OrganizationalChart .............. ....................... .---- --- .............. ......... .-...............................................
ix
Certificate of Achievement for Excellence in Financial Reporting(GFOA)........................................
x
FINANCIAL SECTION
IndependentAuditors' Report .................................................................................................................1
Management's Discussion and Analysis.................................................................................................3
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof Net Assets.................................................................................................................15
Statementof Activities....................................................................................................................16
Fund Financial Statements:
Balance Sheet - Governmental Funds..........................................................................................18
Reconciliation of the Balance Sheet of Governmental Funds
tothe Statement of Net Assets.......................................................................................................20
Statement of Revenues, Expenditures and Changes in Fund
Balances- Governmental Funds...................................................................................................21
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................23
Budgetary Comparison Statement by Department - General Fund..............................................24
Budgetary Comparison Statement - Low/Moderate Income Housing PA No. 2 ............................26
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30;-2007
TABLE OF CONTENTS Continued
Page
Number
Statement of Net Assets — Proprietary Funds.............................................................................27
Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds ...... 28
Statement of Cash Flows — Proprietary Funds...........................................................................29
Statement of Fiduciary Net Assets - Fiduciary Funds ... ...... .............. .......... ........................ ........ 31
Notes to Financial Statements ................................................. ................... ................................33
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Non -Major Governmenta[ Funds..................................................68
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Non -Major Governmental Funds..................................................................76
Budgetary Comparison Schedules — Special Revenue Funds
StateGas Tax........................................................................................................................84
Library.....................................................................................................................................85
FederalAssistance
.................................................................................................................86
SLEBG....................................................................................................................................87
IndianGaming
........................................................................................................................88
Lightingand Landscape............................................................................................... .........89
RCTC......................................................................................................................................90
Quimby...................................................................................................................................91
PublicSafety...........................................................................................................................92
ArtsIn Public Places........................................................................................-----..................93
SouthCoast Air Quality..........................................................................................................94
AB939...........................................................................................................................•---.....95
Low/Moderate Income Housing PA No. 1..............................................................................96
CV Violent Crime Task Force.................................................................................•...............97
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2007
TABLE OF CONTENTS (Continued)
Page
Number
Budgetary Comparison Schedules — Capital Projects Funds
CapitalImprovement......................................................................................................
....... 98
Redevelopment Agency PA No. 1........................................................................................99
2004 Low/Mod Bond...........................................................................................................100
Infrastructure.......................... . ...... . ............. ... .......... ...........................................................101
Transportation.....................................................................................................................102
Parks and Recreation.............................................................................
...................103
CivicCenter .......................... ..............................................................................................104
LibraryDevelopment...........................................................................................................105
CommunityCenter.............................................................................................................106
StreetFacility.......................................................................................
...............107
ParkFacility........................................................................................................................108
FireFacility.........................................................................................................................109
Redevelopment Agency PA No. 2......................................................................................110
Financing Authority Projects ...................................................
................111
Budgetary Comparison Schedules — Debt Service Funds
Redevelopment Agency PA No. 1......................................................................................112
Redevelopment Agency PA No. 2......................................................................................113
FinancingAuthority.............................................................................................................114
Combining Statement of Net Assets — Internal Service Funds ...............................................116
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets — Internal Service Funds..........................................................................117
Statement of Cash Flows — Internal Service Funds................................................................118
Combining Balance Sheet — Agency Funds............................................................................120
Combining Statement of Changes in Assets and Liabilities — Agency Funds .........................121
CITY OF LA QUINTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2007
TABLE OF CONTENTS Continued
Page
Number
STATISTICAL SECTION
NetAssets by Component............................................................................................................124
Changesin Net Assets.................................................................................................................125
Changes in Net Assets — Governmental Activities.......................................................................126
Changes in Net Assets — Business -type Activities.......................................................................127
Fund Balances of Governmental Funds.......................................................................................128
Changes in Fund Balances of Governmental Funds....................................................................129
Assessed Value and Estimated Actual Value of Taxable Property..............................................130
Assessed Value and Estimated Actual Value of Taxable Property -
RedevelopmentAgency...............................................................................................................131
Direct and Overlapping Property Tax Rates.................................................................................132
Principal Property Taxpayers.......................................................................................................133
Property Tax Levies and Collections............................................................................................134
Ratios of Outstanding Debt by Type.............................................................................................135
Ratio of General Bonded Debt Outstanding.................................................................................136
Directand Overlapping Debt........................................................................................................137
LegalDebt Margin Information.....................................................................................................138
Pledged -Revenue Coverage........................................................................................................139
Demographic and Economic Statistics.........................................................................................140
PrincipalEmployers......................................................................................................................141
Full-time City Employees..............................................................................................................142
OperatingIndicators.....................................................................................................................143
CapitalAsset Statistics.................................................................................................................144
Schedule of Insurance in Force....................................................................................................145
r /E�
` ,(r . P.O. Box 1504 i kuu"4
� LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLE TAMPICO (760) 777-7000
LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101
November 20, 2007
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, 2007. 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.
Lance Soll & Lunghard LLP Certified Public Accountants have issued an unqualified
opinion on the City of La Quinta financial statements for the year ended June 30,
2007. The independent auditor's report is located at the front of the financial
section of this report.
Management's discussion and analysis (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and
analysis of the basic financial statements. The MD&A complements the letter of
transmittal and should be read in conjunction with it.
Profile of the Government
The City of La Quinta is located 120 miles east of Los Angeles in the eastern
portion of Riverside County known as the Coachella Valley. The City motto is
"The Gem of the Desert." The City is governed by a five -member City Council
under the Council/Manager form of government. The Mayor is directly electedby
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
Managers 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
Resort Communities 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 Burrtec Waste Industries, 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 2.12.080, 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.
Local economy
According to the State of California Economic Development Department (EDD), as
of July 2007, the total workforce for the City of La Quinta was 15,300 of which
14,900 were employed for a 2.6% unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.7% and the statewide
unemployment rate of 5.2%.
During the last ten years, the City of La Quinta has been in a growth phase with
net assessed values increasing from $2.32 billion in FY 97/98 to $11.95 billion
(over 514%). This major increase in assessed value consists primarily of residential
development; however, in the last three 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: Costco, Embassy Suites Hotel, and Sam's Club. 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 a Homewood
Suites Hotel, J.C. Penney, Mimi's Cafe, Applebees Restaurant, and Cost Plus World
Market. 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 364%. Two Departments that have exceeded the average include
Community Services (606%), and Planning and Development (401 %). In the case
of Community Services, much of the increase can be attributed to adding library
services and park maintenance functions to the Department. In the case of Planning
and Development, much of the increase is reflected in increased personnel costs.
During the same ten-year period, the City of La Quinta general fund revenues
increased 330%. Sources that exceeded the average include intergovernmental
(667%), and interest earnings (446%). 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. In the case of interest
earnings, the increase is due to greater General Fund reserves and additional
advances between the General Fund and the Redevelopment Agency.
Lon -term financial plannina
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 41,092, 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) 06/07, the General Fund balance increased by $7.6 million
consisting of revenue increases in each category; taxes, license and permit fees,
charges for services, and interest earnings. In addition, expenditures were less
than budgeted in the police, fire and planning administration divisions.
The General Fund Balances as of June 30, 2007 was $84.6 million of which $28.4
million was reserved and $56.2 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 in the past 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 $7.8 million of funds that have been diverted to the
State will not be refunded and are not be available for use within the City of La
Quinta. No State mandated contribution in FY 06/07 was made and no FY 07/08
contribution is anticipated.
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 1 1 1 and Interstate 10 from two lanes
to six lanes. The construction phase ($23 million) is nearing completion with
improvements consisting of a six -lane bridge over the Whitewater Channel, which
v
will provide an all-weather crossing. In addition, the $13.3 million City Hall
expansion is 40% complete with an expected completion in January 2008 which
will add an additional 15,000 sq. feet of office space and Emergency Operations
Center (EOC). Another major initiative is the construction of the Vista Dunes
Courtyard Homes ($35.2 million) on a former mobile home park which is utilizing
the latest energy saving "Green" technologies in its design and construction.
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 of 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,
2006. This was the tenth consecutive year that the City 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.
V1
Respectfully submitted,
Thomas P. Genovese
City Manager
John M. Falconer
Finance Director
Vii
City of La Quinta
Directory of Officials
June 30, 2007
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
Bret Plumlee, Assistant City Manager -Management Services
Doug Evans, Assistant City Manager — Development Services
John M. Falconer, Finance Director
Tom Hartung, Building & Safety Director
Les Johnson, Planning Director
Kathy Jenson, City Attorney
Edie Hylton, Community Services Director
Veronica Montecino, City Clerk
Tim Jonasson, Public Works Director/City Engineer
X
Community Services
Administration
Director
Recreation Supervisor - 1 1/2 Time
Recreation Activities Coordinator - 1/2 Time
Secretary
Office Assistant
Recreation
Recreation Supervisor- 1/2 Time
Recreation Activities Coordinator- 1/2 Time
Senior Center
Senior Center Supervisor
Senior Center Activities Coordinator
Senior Center Assistant
Park Maintenance x Goff Operations
Golf d Pz kfLarndscape Manager
Mainlanance Manager - IM Time
Maintenance Foreman - 114 Time
Maintenance Worker I - 114 Time
Police
County Contract
City. of La Quinta, California
Organizational Chart
Fiscal Year 2006/2007
F
Mayor and City Council
edevelopment Agency Board
Financing Authority Board
City Attorney _ ......
General Government
Assistant City Manager - 2 Positions
Management Analyst - 3 Positions
Management Assistant
Executive Assistant - 1 1/2 Positions
Risk Management
PersonnelfRisk Manager
Executive Assistant - 1/2 Positions
Public Works
Administration
Director
Management Analyst
Senior Secretary
Development Services
Principal Engineer
Senior Engineer
Associate Engineer - 2 Positions
Assistant Engineer II
Counter Technician
Secretary - 112 Position
Engineering Services
Principal Engineer
Assistant Engineer II
Assistant Engineer I
Secretary - 1/2 Position
Traffic
Traffic Engineer
Assislant Engineer 11
Maintenance a Operations
Maintenance Manager - 3/4 Position
Maintenance Foreman - 2 314 Positions
Maintenance Worker II - 3 Positions
Maintenance Worker I - 4 75 Positions
Finance
Fiscal Services
Finance Director
Accounting Manager
Financial Services Assistant
Account Technician- Two Positions
Information Services Analyst
Secretary
Senior Account Clerk -Two Positions
City Clerk
City Clerk
Deputy City Clerk - Two Positions
Secretary
Office Assistant
Building 8 Safety
Administration
Director
Special Project Assistant
Senior Secretary
Code Compliance
Community Safety Manager
Senior Code Compliance Officer
Code Compliance Officer II - 2 Positions
Code Compliance Officer 1
Animal Control/Code Compliance Officer I -
2 Positions
Counter Technician
Office Assistant - 1!2 positron
Animal Control
Animal Control Officer II
Animal Conlrol/Code Compliance Officer I -
2 Positions
Building
3uilding 8 Safety Manager
Senior Building Inspector
Plan Examiner
Building Inspector It - 2 Positions
Counter Technician - 2 Positions
Office Assistant - 1/2 Position
Civic Center Building Operations
Facilities Maintenance Coordinator
Emergency Services
Community Development 1
Administration
Director
Planning Manager
Executive Secretary
Secretary
Office Assistant
Planning
Principal Planner - 3 Positions
Associate Planner- 1 Positions
Assistant Planner- 3 Positions
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, 2006
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.
ai!�E QFp�
2 1na1
1,71ATU �.
`w President
SEAL&
pp��Y
Executive Director
X
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
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, 2007, which collectively comprise the City's basic
financial statements as listed in the accompanying table of contents. These financial statements are the
responsibility of the City of La Quinta's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and
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 opinions.
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 as of June 30, 2007, and the
respective changes in financial position and cash flows, where applicable, and the respective budgetary
comparisons for the General Fund and the Low/Moderate Income Housing PA No. 2 for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
October 31, 2007, on our consideration of the City of La Quinta's internal control over financial reporting
and our tests of its compliance with certain 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.
The management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
75 YEARS
19M9F
0203 N. Brea Blvd., Suite 203 0 Brea, CA 92821-4056 • (714) 672-0022 0 Fax (714) 672-0331 • www.lslc ap s.com
Brandon W. Burrows
Donald L. Parker
JaLance
il &
DavMicid E. Hale u
n g h a rd
Donald G`. Slater
LLP
Richard K. Kikuchi
Certified Public Accountants
Retired
Robert C. Lance
1914-1994
Richard C. Soll
Fred J. Lunghard, Jr.
1928-1999
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
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, 2007, which collectively comprise the City's basic
financial statements as listed in the accompanying table of contents. These financial statements are the
responsibility of the City of La Quinta's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and
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 opinions.
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 as of June 30, 2007, and the
respective changes in financial position and cash flows, where applicable, and the respective budgetary
comparisons for the General Fund and the Low/Moderate Income Housing PA No. 2 for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
October 31, 2007, on our consideration of the City of La Quinta's internal control over financial reporting
and our tests of its compliance with certain 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.
The management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
75 YEARS
19M9F
0203 N. Brea Blvd., Suite 203 0 Brea, CA 92821-4056 • (714) 672-0022 0 Fax (714) 672-0331 • www.lslc ap s.com
LLS I Lanee
Sall s
Lunghard
LLP
CCRTINED PUDUC ACCOUNTAWS
To the Honorable Mayor and Members of the City Council
City of La Quinta, California
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying introductory section, the combining
and individual fund statements, schedules and statistical tables are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The accompanying combining and
individual nonmajor fund financial statements and schedules 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 accompanying
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.
October 31, 2007
2
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, 2007. 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 $496,744,000 (net assets). Of this amount, $104,554,000
(unretricted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
• The governmental activities total net assets increased by $51,589,000 and the
Business -Type total net assets decreased by $103,000 attributable to 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 $202,004,000, a decrease of $14,193,000
in comparison with the prior year. Approximately 70 percent of this total amount,
$142,403,000, is available for spending at the government's discretion (unreserved fund
balance).
• At the end of the current fiscal year, the operations/projects/transfers designations
comprised $29,271,000 or 82 percent of total general fund budgeted expenditures.
• The City of La Quinta's total debt decreased by $5,787,000 during the current fiscal
year from $253,265,000 to $247,478,000 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 intergovernmental
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, planning and
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
they function for all practical purposes as departments of the City of La Quinta,
and therefore have 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 statements.
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 government -
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 three (33) 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 bal-
ances for the general fund, one (1) special revenue fund, two (2) debt service funds
and two (2) capital project funds. These six (6) funds are considered to be major
funds. Data from the other twenty seven (27) governmental funds are combined
into a single, 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 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
5
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.
E
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 $496,744,000 at the close of the most recent fiscal year, which is
$51,486,000 greater than the previous year.
The largest portion of the City of La Quinta's net assets, which remained at 66%
from 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
365,469
2007
2006
2007
2006
2007
2006
Current and other assets $ 244,280,997
$ 241,756,724 $
(2,019,993) $
(1,152,519) $
242,261,004 S
240,604,205
Capital assets 477,813,364
420,791,784
43,517,873
43,165,774
521,331,237
463,957,558
Total assets 722,094,361
662,548,508
41,497,880
42,013,255
763,592,241
704,561,763
Current liabilities
19,882,003
11,377,874
365,469
513,127
20,247,472
11,891,001
Non-current liabilities
245,774,853
246,321,774
625,848
1,090,602
246,600,701
247,412,376
Total liabilities
266,656,856
257,699,648
1,191,317
1,603,729
266,848,173
259,303,377
Net assets:
Invested in capital assets,
net of related debt
30[x,220,033
253,559,117
42,692,025 42,075,172 342,912,058
295,634,289
Restricted
49,277,895
65,278,776
- - 49,277,895
65,278,776
Unrestricted
106,939,577
86,010,967
(2,385,462) (1,665,646) 104,554,115
84,345,321
Total net assets
0 456,437,505 $
404, 48,860 $
40,306,563 $ 40,409,526 $ 496,744,068
$ 445,258,386
An additional portion of the City of La Quinta's net assets (10 percent versus 16
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 = $106,940,000 (24 percent) may be used to meet the government's
ongoing obligations to citizens and creditors.
7
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 $2,385,000.
Governmental activities
Governmental activities increased net assets by $51,589,000 accounting for a 13
percent change in the net assets from the previous year. Key elements of these
changes are as follows:
tncrease in net assets before
transfers and restatements
67
—10¢ }a15-WOU14vUI 51
Revenues decreased by $6,487,000 with the two largest category decreases in capital
grants and contributions ($16,318,000) and charges for services ($4,689,000). Capital
grants and contributions decreased as a result of less received from developer impact
fee collections, Quimby fee collections and interest income generated from unspent
bond capital proceeds. The charges for services decrease stemmed from decreased
building and public works licenses and fees from construction activities.
Expenditures increased by $10,591,000 with the two largest category increases in
Public Safety ($3,659,000) and Community Services ($2,873,000). The increase in the
Public Safety costs is a result of higher police costs ($1,970,000) fire ($459,000) and
Code Compliance costs ($227,000),
H
City of La Quinta Changes in Net
Assets
Governmental Business -type
Revenues:
2007
activities activities
2006 Change 2007
Total
ogram revenues:
2006 Change
2007
2006
Change
Charges for services
Aerating grants and
5,520,909
10,210,057 (4;689,148) 3,540,748 3,120,728 420,020
9,061,657
13,330,785
(4,269,128)
contributions
3,796,495
3,603,173 193,322 -
apnai grants an
3,796,495
3,603,173
193,322
contributions
17,601,131
33,918,901 (16,317,770)
General revenues:
17,601,131
33,918,901
(16,317,770)
ope y axes
4,999,U51
3.679,079 1.319,972—
Uther taxes
8. 18.
4,999,051
Investment income
5UID_OU.1jV
F.7797Tr
ear va tc e in I au
L -an on safe 01 capital ass s
--p—licellaneous
1.944.115
o a revenues
-
penses:
-
I,zenars govemment
Vublic gap ey
12324.1ULP
9.05511, 44
mmUnl y serv[cas
'
-
anntng an ova opmen
-
cwar s
tncrease in net assets before
transfers and restatements
67
—10¢ }a15-WOU14vUI 51
Revenues decreased by $6,487,000 with the two largest category decreases in capital
grants and contributions ($16,318,000) and charges for services ($4,689,000). Capital
grants and contributions decreased as a result of less received from developer impact
fee collections, Quimby fee collections and interest income generated from unspent
bond capital proceeds. The charges for services decrease stemmed from decreased
building and public works licenses and fees from construction activities.
Expenditures increased by $10,591,000 with the two largest category increases in
Public Safety ($3,659,000) and Community Services ($2,873,000). The increase in the
Public Safety costs is a result of higher police costs ($1,970,000) fire ($459,000) and
Code Compliance costs ($227,000),
H
• A transfer out of $875,000 in assets from the governmental activities to the
business -type activities which consist of land and improvements for the SilverRock Golf
course.
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Expenses and Program Revenues - Government Activities
18,628,602
General Public safety Community Planning and Public works
government services development
15,163,422
Interest expense
Expenses and Program Revenues - Business -type Activities
Golf
N.
❑ Expenses
* Program revenues
Business -type activities
This was the second full year of operations for the SilverRock Golf fund since the
golf course began early operation in 2005.
Net assets decreased by $ (103,000) from the net effects of a transfer of assets
from the governmental activities of $875,000 and an operating loss of $(978,000).
Charges for services primarily consisted of green fees and totaled $3,541,000
which was $420,000 greater than the previous year with golf course expenses of
$4,520,000 ,which was $3,000 less than the previous year.
Financial Ana]Vsis 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 $202,004,000, a decrease of $13,494,000
in comparison with the prior year. Approximately 70 percent of this total amount
($142,404,000) constitutes unreserved, which is available for spending at the
government's discretion. The remainder of fund balance ($59,600,000) is reserved or
designated to indicate that it is not available for new spending because it has already
been committed to 1) to pay debt service ($24,299,000), 2) to advance funds to other
funds ($32,421,000), or 3) for a variety of other restricted purposes ($2,880,000).
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 $56,252,000, while
total fund balance reached $84,641,000. 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 238 percent of the total budgeted
expenditures.
The City of La Quinta's general fund balance increased by $8,372,000 during the current
fiscal year. Key factors in this growth are as follows:
• An increase of $2,599,000 in taxes over the final budget, of which $1,848,000 was in
property taxes, $209,000 was in sales taxes (1 percent of the 7.75 percent collected
going to the City), $373,000 was in transient occupancy taxes with the balance in other
taxes.
10
• An increase of $1,462,000 in licenses and permits over the final budget, which
represents increased development and building activity in the Building and Safety
department.
• An increase of $1,201,000 in interest income over the budget, which is a result of higher
than budgeted interest rates and larger amounts under investment.
Actual expenditures were $3,775,000 less than the final budget. Divisions that were
under budget for the year were Police ($923,000), Fire ($423,000), Planning &
Development Administration ($509,000), and the Current Planning Division ($488,000).
Redevelopment Agency Project Area 1 Debt Service Fund
The Redevelopment Agency Project Area 1 Debt Service Fund is used to accumulate
resources, primarily property taxes, to pay debt service.
The fund balance increased by $11,838,000 during the current fiscal year. The key factor
in this growth was the increase in tax increment property tax generated in the project
area, an increase in interest income based upon higher available cash balances and
higher interest rates, and not having to pay to the State of California an Educational Relief
Augmentation Fund (ERAF) payment.
2004 Low/Mod Bond Fund
The 2004 Low/Mod Bond Fund is used to account for the promotion of low and moderate
income capital projects in the La Quinta Redevelopment Project Area 1 and 2. The funds
were obtained by issuing a bond in 2004 with available fund balances representing
unspent bond proceeds. The fund balances decreased by $18,564,000 during the Fiscal
Year which represented the Agencies efforts to increase the number of these housing
units in the City. The two primary projects funded during the year were the Vista Dunes
Courtyard Homes ($14,637,000) and the Ave 48th and Adams Apartments ($1,786,000).
Low/Moderate Income Housing PA No. 2 Fund
The Low/Moderate Income Housing No. 2 Fund is used to account for the promotion of
low and moderate income capital projects in the La Quinta Redevelopment Project Area 2
from 20% of the tax increment property tax generated in this Project Area.
During the Fiscal Year this fund purchased twenty acres (20) for $19,966,000 which
represented the major expenditures in this Fund.
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 $2,301,000 increase in appropriations and transfers out
between the original ($33,194,000) and final amended budget ($35,495,000). Following
are the main components of the increase:
• $380,000 supplemental appropriation to the planning & administration division for
additional planning contract services; and,
• $1,163,000 in additional transfers out for. capital projects funded by the General Fund.
Which included the Ave 54 Airport Blvd Rehabilitation Program ($954,000) and the
Embassy Suites Transient Occupancy Tax Rebate ($150,000).
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, 2007, amounts to $521,331,000 (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 increased this fiscal year from the purchase
of properties which exceeded the depreciation expenses.
The following chart lists the asset categories for governmental and business like
activities net of depreciation.
12
City of La Quinta Capital Assets (net of depreciation)
Governmental
Business -type
activities activities Total
2007 2006 2007 2006 2007 2006
Land
builOings an
improvements 28,033,383 28,682,380 6,021,704 6,234,276 34,055,087 34,916,656
Equipment and turniture
Vehicles 522,281 38b,4Ub 10,175 14,244 532,462 399,650
n ras ructure 33UJU,340 110'.198,188 - 2,3
Construction in progress 42,662,144 26,621,331r,
Major capital asset events during the current fiscal year included the following:
Governmental activities
- Recording the new expansion of the Eisenhower Bridge, which totaled $4,103,000;
• Recording the land, park buildings and equipment in the park equipment and facility
internal service fund, which totaled $656,000,-
0
656,000;
• Recording infrastructure improvements, including developer dedications of
$8,918,000, to street improvements, street right of way, street sidewalks and curbs and
gutters, and street median, which total $24,356,000;
- Began the construction phase of the City Hall and Museum expansion,
- Recording the transfer of assets, which was primarily land from the Redevelopment
Agency to the SilverRock Golf Enterprise Fund had a cost basis of $875,000.
Business -type activities
• Recording improvements to the golf course, temporary clubhouse, and the
maintenance building for the first golf course at SilverRock Resort totaled $875,000.
Additional information on the City of La Quinta's capital assets can be found in Footnote 6
to the financial statements.
Long-term debt
At the end of the current fiscal year, the City of La Quinta had
outstanding of $246,652,000. $145,170,000 of this debt amount
secured solely by specified revenue sources (i.e., tax allocati
$93,645,000 of the debt represents revenue bonds that will be paid
increment property tax housing funds. In addition, $826,000 in capital
are outstanding in connection with SilverRock Golf Course.
13
total bonded debt
represents bonds
on bonds); while,
from pledged tax
equipment leases
City of La Quinta Outstanding Debt
The City of La Quinta's total outstanding debt decreased by $5,787,000 during the fiscal
year.
Additional information on the City of La Quinta's long-term debt can be found in notes 7
and 8 of the financial statements.
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta's budget for the 2008
fiscal year:
• The City of La Quinta had a 2.6 percent unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.7 percent and the statewide
unemployment rate of 5.2 percent.
During the last ten years, the City of La Quinta has been in a growth phase with net
assessed values increasing from $2.32 billion in FY 97/98 to $11.95 billion or over 514
percent.
• During the current fiscal year, the general fund net income was $7,610,000.
$1,478,000 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 07/08.
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.
14
Governmental Business -type
activities activities
Total
Debt type:
2007 2006 2007 2006
2007
2006
Capital leases
- u,ouz $
62*,64b 4,
.b
Gompensated absences
732r,055 600,200
734,055
o
evetoper agreement
643,539
b x,53
i b,
ss through agreement
_66—e—to
4,431.178 5,1869627
4,431,176
5, 186.62
government agencies
2,028,311 2,178,311
2,028,311,178,x11
t ax allocation oonas
145,11 10,OOU 141,915,000
14b, iU,UUO
I 14
f,91 5,000
Revenue Donas
77-67-0,710
3,b 5,u U
5,5
I otas
$ 246757161 S 252.174.234
The City of La Quinta's total outstanding debt decreased by $5,787,000 during the fiscal
year.
Additional information on the City of La Quinta's long-term debt can be found in notes 7
and 8 of the financial statements.
Economic Factors and Next Year's Budgets and Rates
These factors were considered in preparing the City of La Quinta's budget for the 2008
fiscal year:
• The City of La Quinta had a 2.6 percent unemployment rate. This rate is significantly
lower than the Riverside County unemployment rate of 5.7 percent and the statewide
unemployment rate of 5.2 percent.
During the last ten years, the City of La Quinta has been in a growth phase with net
assessed values increasing from $2.32 billion in FY 97/98 to $11.95 billion or over 514
percent.
• During the current fiscal year, the general fund net income was $7,610,000.
$1,478,000 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 07/08.
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.
14
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
JUNE 30, 2007
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Loans and notes
Accrued interest
Internal balances
Prepaid costs
Inventories
Deposits
Due from other governments
Deferred charges
Restricted assets:
Cash with fiscal agent
Capital assets not being depreciated
Capital assets, net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Deposits payable
Due to other governments
Retentions payable
Unearned revenue
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Public safety
Planning and development
Community services
Public works
Debt service
Unrestricted
Total Net Assets
See Notes to Financial Statement 15
Primary Government
Governmental Business -Type
Activities Activities Total
$ 150,403,664
$ 97,577
$ 150,501,241
282,452
30,900
313,352
3,234,536
-
3,234,536
13,066,117
-
13,066,117
774,980
250
775,230
2,466,003
(2,466,003)
-
19,751
1,865
21,616
-
65,192
65,192
211,953
250,000
461,953
7,575,817
226
7,576,043
4,753,409
-
4,753,409
61,492,315
-
61,492,315
378,457,741
36,458,147
414,915,888
99,355,623
7,059,726
106,415,349
722,094,361
41,497,880
763,592,241
9,940,774
334,896
10,275,670
298,622
1,412
300,034
4,239,107
-
4,239,107
2,502,217
25,000
2,527,217
573,495
-
573,495
1,843,513
-
1,843,513
484,275
4,161
488,436
6,711,341
371,444
7,082,785
239,063,512
454,404
239,517,916
265,656,856
1,191,317
266,848,173
300,220,033
182,715
21,246,291
1,031,838
26,597,703
219,348
106, 939, 577
$ 456,437,505
42,692,025
(2,385,462)
$ 40,306,563
342,912,058
182,715
21,246,291
1,031,838
26,597,703
219,348
104, 554,115
$ 496,744,068
CITY OF LA QUINTA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2007
Functions/Programs
Primary Government:
Governmental Activities:
General government
Public safety
Planning and development
Community services
Public works
Interest on long-term debt
Total Governmental Activities
Business -Type Activities:
Golf Course
Total Business -Type Activities
Total Primary Government
4,520,173 3,540,748 -
4,520,173 3,540,748 -
$ 61,239,884 $ 9,061,657 $ 3,796,495 $ 17,601,131
General Revenues:
Taxes:
Property taxes, levied for general purpose
Tax increment
Sales taxes
Transient occupancy taxes
Franchise taxes
Business licenses taxes
Other taxes
Use of money and property
Motor vehicle in lieu, unrestricted
Other
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets at Beginning of Year
Restatement of Net Assets
Net Assets at End of Year
See Notes to Financial Statement 16
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Expenses
Services
and Grants
and Grants
$ 6,284,342
$ 60,530
$ -
$ _
12,724,100
2,659,515
353,202
29,289
7,736,520
169,643
327,166
9,699
4,299,453
387,065
1,902,631
2,391,193
10,511,874
2,244,156
1,213,496
15,170,950
15,163,422
-
-
56,719,711
5,520,909
3,796,495
17,601,131
4,520,173 3,540,748 -
4,520,173 3,540,748 -
$ 61,239,884 $ 9,061,657 $ 3,796,495 $ 17,601,131
General Revenues:
Taxes:
Property taxes, levied for general purpose
Tax increment
Sales taxes
Transient occupancy taxes
Franchise taxes
Business licenses taxes
Other taxes
Use of money and property
Motor vehicle in lieu, unrestricted
Other
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets at Beginning of Year
Restatement of Net Assets
Net Assets at End of Year
See Notes to Financial Statement 16
Net (Expenses) Revenues and Changes in Net Assets
Primary Government
(979,425)
Governmental Business -Type
Activities Activities
Total
$ (6,223,812) $ - $
(6,223,812)
(9,682,094) -
(9,682,094)
(7,230,012) -
(7,230,012)
381,436 -
381,436
8,116,728 -
8,116,728
(15,163,422) -
(15,163,422)
(29,801,176) -
(29,801,176)
-
(979,425)
(979,425)
-
(979,425)
(979,425)
(29,801,176)
(979,425)
(30,780,601)
4,999,051
-
4,999,051
42,583,031
-
42,583,031
8,896,716
-
8,896,716
5,448,361
-
5,448,361
1,259,985
-
1,259,985
307,032
-
307,032
872,753
-
872,753
11,854,951
1,817
11,856,768
3,291,055
-
3,291,055
2,052,246
-
2,052,246
(874,645)
874,645
-
80,690,536
876,462
81,566,998
50,889,360
(102,963)
50,786,397
404,848,882 40,409,526 445,258,408
699,263 - 699,263
$ 456,437,505 $ 40,306,563 $ 496,744,068
See Notes to Financial Statement 17
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2007
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ 6,416,714 $ 26,636 $ 3,384,130 $ -
Accrued liabilities 296,895 - _
Deposits payable 2,185,846 - 84,826
Due to other governments 12,797 - _
Retentions payable 75,391 - 1,768,122
Deferred revenues 5,887,737 9,500,000 40,001
Unearned revenue - - 182,052
Due to other funds - - - 6,186,049
Advances from other funds _
Total Liabilities 14,875,380 9,526,636 5,459,131 6,186,049
Fund Balances:
Reserved:
Reserved for encumbrances 779,530 _ _
Reserved for prepaid costs 11,774 1,504
Reserved for notes receivable _
Reserved for advances to other funds 27,597,329
Reserved for debt service -
Unreserved:
Unreserved, reported in:
General Fund 56,251,887 - _
Special revenue funds - 10,075,452 _ _
Capital projects funds - - 38,283,337
Debt service funds _
Total Fund Balances 84,640,520 10,076,956 - 38,283,337
Total Liabilities and Fund Balances $ 99,515,900 $ 19,603,592 $ 5,459,131 $ 44,469,386
See Notes to Financial Statement 18
Special
Revenue Fund
Capital Projects Funds
Low/Moderate
2004
Income Housing
Capital
Low/Mod
General
PA No. 2
Improvement
Bond
Assets:
Cash and investments
$ 62,370,184
$ 10,020,157
$ 4,949,566
$ -
Receivables:
Accounts
8,819
8,500
194,294
-
Taxes
3,234,536
-
_
_
Notes
-
9,500,000
-
Accrued interest
412,365
12,875
-
Prepaid costs
11,774
1,504
Deposits
5,903
-
_
Due from other governments
5,856,210
60,556
315,271
-
Due from other funds
18,780
-
_
Advances to other funds
27,597,329
Restricted assets:
Cash and investments with fiscal agents
-
-
-
44,469,386
Total Assets
$ 99,515,900
$ 19,603,592
$ 5,459,131
$ 44,469,386
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ 6,416,714 $ 26,636 $ 3,384,130 $ -
Accrued liabilities 296,895 - _
Deposits payable 2,185,846 - 84,826
Due to other governments 12,797 - _
Retentions payable 75,391 - 1,768,122
Deferred revenues 5,887,737 9,500,000 40,001
Unearned revenue - - 182,052
Due to other funds - - - 6,186,049
Advances from other funds _
Total Liabilities 14,875,380 9,526,636 5,459,131 6,186,049
Fund Balances:
Reserved:
Reserved for encumbrances 779,530 _ _
Reserved for prepaid costs 11,774 1,504
Reserved for notes receivable _
Reserved for advances to other funds 27,597,329
Reserved for debt service -
Unreserved:
Unreserved, reported in:
General Fund 56,251,887 - _
Special revenue funds - 10,075,452 _ _
Capital projects funds - - 38,283,337
Debt service funds _
Total Fund Balances 84,640,520 10,076,956 - 38,283,337
Total Liabilities and Fund Balances $ 99,515,900 $ 19,603,592 $ 5,459,131 $ 44,469,386
See Notes to Financial Statement 18
CITY OF LA QUINTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2007
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other governments
Retentions payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Reserved for debt service
Unreserved:
Unreserved, reported in:
General Fund
Special revenue funds
Capital projects funds
Debt service funds
Total Fund Balances
Debt Service Funds
Redevelopment Redevelopment
Agency Agency
PA No. 1 PA No. 2
Other Total
Governmental Governmental
Funds Funds
$ 33,187,356 $ 6,810,617 $
28,090,490
$ 145,428,370
- -
70,839
282,452
- -
-
3,234,536
- -
3,566,117
13,066,117
133,761 61,246
133,075
753,322
- -
6,473
19,751
- -
206,050
211,953
335,329 244,927
763,194
7,575,487
- 6,186,049
-
6,204,829
- -
4,823,543
32,420,872
17, 022,929
61,492,315
$ 33,656,446 $ 13,302,839 $ 54,682,710 $ 270,690,004
$ $ - $ 86,566
$ 9,914,046
-
296,895
231,545
2,502,217
168,201 392,497 -
573,495
- - -
1,843,513
- - 1,484,472
16,912,210
302,223
484,275
- - 18,780
6,204,829
12,100,001 10,000,000 7,854,868
29,954,869
12,268,202 10,392,497 9,978,454
68,686,349
- -
779,530
- - 6,473
19,751
- - 2,081,645
2,081,645
- - 4,823,543
32,420,872
21,388,244 2,910,342 -
24,298,586
- - -
56,251,887
17,695,100
27,770,552
- - 20,086,861
58,370,198
- 10,634
10,634
21,388,244 2,910,342 44,704,256
202,003,655
Total Liabilities and Fund Balances $ 33,656,446 $ 13,302,839 $ 54,682,710
$ 270,690,004
See Notes to Financial Statement 19
CITY OF LA QUINTA
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2007
Fund balances of governmental funds $ 202,003,655
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
390,911,723
Other capital assets
137,571,588
Accumulated depreciation
(67,160,261)
Long-term debt and compensated absences that have not been included
in the governmental fund activity:
Bonds payable
(238,815,000)
Unamortized bond premium/discount
877,230
Unamortized cost of issuance
4,753,409
Other long-term liabilities
(7,103,029)
Compensated absences
(729,886)
Accrued interest payable for the current portion of interest due on long-term debt
has not been reported in the governmental funds.
(4,239,107)
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
16,912,210
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net assets.
21,454,973
Net assets of governmental activities
$ 456,437,505
See Notes to Financial Statement 20
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2007
See Notes to Financial Statement 21
Special
Revenue Fund
Capital Projects Funds
Low/Moderate
2004
Income Housing
Capital
Low/Mod
General
PA No. 2
Improvement
Bond
Revenues:
Taxes
$ 21,594,996
$ 5,194,289
$ -
$ -
Assessments
-
_
_
Licenses and permits
2,788,882
-
_
Intergovernmental
7,400,101
-
4,056,049
-
Contribution from property owners
151,785
-
-
_
Charges for services
1,544,190
-
Use of money and property
5,188,103
343,073
-
2,706,511
Fines and forfeitures
337,521
-
-
-
Miscellaneous
14,836
-
_
Developer participation
-
-
292,415
-
Loan repayments
-
59,409
-
-
Total Revenues
39,020,416
5,596,771
4,348,464
2,706,511
Expenditures:
Current:
General government
5,246,378
-
-
-
Public safety
15,634,761
-
_
-
Planning and development
1,384,466
20,513,194
-
4,705,800
Community services
2,994,586
-
-
Public works
5,019,859
-
-
Capital outlay
-
-
36,311,020
-
Debt service:
Principal retirement
-
-
182,491
-
Interest and fiscal charges
-
65,963
Pass-through agreement payments
-
_
-
-
Total Expenditures
30,280,050
20,513,194
36,559,474
4,705,800
Excess (Deficiency) of Revenues
Over (Under) Expenditures
8,740,366
(14,916,423)
(32,211,010)
(1,999,289)
Other Financing Sources (Uses):
Transfers in
308,686
16,000,000
32,211,010
-
Transfers out()
1,439 506
(3,127,770 )
-
(16,564,295)
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
(1,130,820)
12,872,230
32,211,010
(16,564,295)
Net Change in Fund Balances
7,609,546
(2,044,193)
-
(18,563,584)
Fund Balances, Beginning of Year, as
previously reported
76,269,124
12,121,149
-
56,846,921
Restatements
761,850
-
-
-
Fund Balances, Beginning of Year, as restated
77,030,974
12,121,149
-
56,846,921
Fund Balances, End of Year
$ 84,640,520
$ 10,076,956
$ -
$ 38,283,337
See Notes to Financial Statement 21
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Expenditures:
Current:
General government
Debt Service Funds
184,484
213,781
6,150,699
Redevelopment
Redevelopment
Other
Total
15,685,493
Agency
Agency
Governmental
Governmental
28,994,177
PA No. 1
PA No. 2
Funds
Funds
Revenues:
Public works
-
1,735,648
Taxes
$ 42,029,504
$ 20,777,158
$ 10,507,377
$ 100,103,324
Assessments
-
-
877,191
877,191
Licenses and permits
-
-
-
2,788,882
Intergovernmental
-
-
3,347,821
14,803,971
Contribution from property owners
-
-
913,193
1,064,978
Charges for services
-
-
277,604
1,821,794
Use of money and property
1,054,152
556,329
2,844,182
12,692,350
Fines and forfeitures
-
-
-
337,521
Miscellaneous
-
-
59,994
74,832
Developer participation
-
-
5,018,025
5,310,440
Loan repayments
-
-
987,611
1,047,020
Total Revenues
43,083,656
21,333,487
24,832,998
140,922,303
Expenditures:
Current:
General government
506,056
184,484
213,781
6,150,699
Public safety
-
-
50,732
15,685,493
Planning and development
-
2,390,717
28,994,177
Community services
-
-
1,032,716
4,027,302
Public works
-
1,735,648
6,755,507
Capital outlay
-
-
109,397
36,420,417
Debt service:
Principal retirement
3,395,449
205,000
1,865,000
5,647,940
Interest and fiscal charges
8,678,900
1,314,785
5,000,329
15,059,977
Pass-through agreement payments
19,044,700
17,453,875
-
36,498,575
Total Expenditures
31,625,105
19,158,144
12,398,320
155,240,087
Excess (Deficiency) of Revenues
Over (Under) Expenditures
11,458,551
2,175,343
12,434,678
(14,317,784)
Other Financing Sources (Uses):
Transfers in
4,448,138
1,954,560
6,032,182
60,954,576
Transfers out
(4,068,349)
(1,954,560)
(33,800,096)
(60,954,576)
Proceeds from sale of capital assets
-
-
124,097
124,097
Total Other Financing Sources
(Uses)
379,789
-
(27,643,817)
124,097
Net Change in Fund Balances
11,838,340
2,175,343
(15,209,139)
(14,193,687)
Fund Balances, Beginning of Year, as
previously reported
9,549,904
734,999
59,975,982
215,498,079
Restatements
-
(62,587)
699,263
Fund Balances, Beginning of Year, as restated
9,549,904
734,999
59,913,395
216,197,342
Fund Balances, End of Year
$ 21,388,244 $
2,910,342
$ 44,704,256
$ 202,003,655
See Notes to Financial Statement 22
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, 2007
Net change in fund balances - total governmental funds $ (14,193,687)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period:
Capital outlay
61,507,862
Depreciation expense
(4,209,852)
Repayment of principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
5,426,098
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
82,253
Compensated absences expenses reported in the Statement of Activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
(121,620)
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
1,846,249
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities.
552,057
Change in net assets of governmental activities
$ 50,889,360
See Notes to Financial Statement 23
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1, as restated
Resources (Inflows):
Taxes
Licenses and permits
Intergovernmental
Contributions from property owners
Charges for services
Use of money and property
Fines and forfeitures
Other
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General Government
Legislative
City Manager
Development services
Management services
City Clerk
Fiscal services
Central services
Total general government
Public Safety
Police
Building & safety admin
Building
Code compliance
Animal control
Civic Center Building
Fire
Emergency services
Total public safety
Community Services
Community services admin
Senior center
Park & recreation
Park maintenance
Total community services
Planning and Develo ment
Administation
Current planning
Total planning and development
Variance with
Final Budget
Budget Amounts Actual Positive
Original _ Final Amounts (Negative)
$ 77,030,974 $ 77,030,974 $ 77,030,974 $ -
18,695,950
1,327,100
7,421,730
938,700
3,987,300
306,500
332,542
$110,040,796
$ 862,350
1,005,586
1,585,500
1,093,904
546,604
770,921
315,879
6,180, 744
9,455,117
343,212
967,210
905,277
386,980
480,148
4,214,373
182,949
16,935,266
1,058,779
388,971
173,196
1,210,810
2,831,756
1,044,249
850,976
1,895,225
See Notes to Financial Statement 24
18, 995, 879
1,327,100
7,743,650
115,000
1,599,600
3,987,300
314,087
5,500
332,542
$111,451,632
$ 906,250
1,008,289
1,652,000
916,267
548,271
782,174
429,517
6,242,768
9,455,117
297,370
1,152,255
918,672
417,381
485,433
4,284,545
184,216
17,194,989
1,187,481
397,857
187,316
1,249,685
3,022,339
1,424,252
957,317
2,381,569
21,594,996
2,788,882
7,400,101
151,785
1,544,190
5,188,103
337,521
14,838
308,686
$116,360,076
$ 734,131
895,591
1,405,639
643,485
490,849
738,103
338,580
5,246,378
8,531,775
266,984
1,276,504
807,484
326,195
443,670
3,861,487
120,662
15,634,761
1,174,940
342,491
170,748
1,306,407
2,994,586
914,988
469,478
1,384,466
2,599,117
1,461,782
(343,549)
36,785
(55,410)
1,200,803
23,434
9,338
(23,856)
$ 4,908,444
$ 172,119
112,698
246,361
272,782
57,422
44,071
90,937
996,390
923,342
30,386
(124,249)
111,188
91,186
41,763
423,058
63,554
1,560,228
12,541
55,366
16,568
56,722
27,753
509,264
487,839
997,103
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2007
Public Works
Administration
Development services
Maintenance/operations - Street
Maintenance/operations - Lighting
Traffic
Construction management
Total public works
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 477,975
$ 546,934
$ 397,992
$ 148,942
927,341
1,066,679
926,063
140,616
1,395,343
1,473,513
1,308,480
165,033
967,071
1,132,722
1,047,228
85,494
373,542
376,183
189,800
186,383
684,445
369,729
1,150,296
780,567
4,825,717
4,965,760
5,019,859
(54,099L
525,454
1,687,564
1,439,506
248,058
33,194,162
35,494,989
31,719,556
3,775,433
$ 76,846,634 $ 75,956,643 $ 84,640,520 $ 1,133,011
See Notes to Financial Statement 25
CITY OF LA QUINTA
BUDGETARY COMPARISON STATEMENT
LOW/MODERATE INCOME HOUSING PA NO.2
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Other financing sources
Loan repayments
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers to other funds
Total Charges to Appropriations
$17,266,849 $46,705,852 $ 33,717,920 $ (12,987,932)
$ 741,534
$25,541,534
$20,513,194
Variance with
1,954,642
7,091,916
3,127,770
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$12,121,140
$12,121,149
$12,121,149
$ -
4,870,400
5,401,800
5,194,289
(207,511)
275,300
441,000
343,073
(97,927)
-
12,641,903
-
(12,641,903)
100,000
59,409
(40,591)
-
16,000,000
16,000,000
-
$17,266,849 $46,705,852 $ 33,717,920 $ (12,987,932)
$ 741,534
$25,541,534
$20,513,194
$ 5,028,340
1,954,642
7,091,916
3,127,770
3,964,146
2,696,176
32,633,450
23,640,964
8,992,486
Budgetary Fund Balance, June 30 $14,570,673 $14,072,402 $10,076,956 $ (3,995,446)
See Notes to Financial Statement 26
CITY OF LA QUINTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2007
Business -Type
28,455
Activities -
2,466,003
Enterprise Funds
Governmental
4,168
Activities -
Golf
Internal
Course
Service Funds
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Inventories
Deposit
Due from other governments
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Deposits payable
Unearned revenue
Total Current Liabilities
Noncurrent:
Advances from other funds
Compensated absences
Capital leases payable
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
See Notes to Financial Statement 27
$ 97,577 $ 4,975,294
30,900 -
250 21,658
1,865 -
65,192 -
250,000 -
226 330
446,010 4,997,282
43,517,873 16,490,314
43,517,873 16,490,314
$ 43,963,883 $ 21,487,596
$ 334,896 $ 26,728
1,412 1,727
25,000 -
4,161 -
365,469
28,455
2,466,003
-
-
4,168
825,848
-
3,291,851
4,168
3,657,320
32,623
42,692,025
16,490,314
(2,385,462)
4,964,659
40,306,563
21,454,973
$ 43,963,883 $
21,487,596
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2007
Operating Revenues:
Sales and service charges
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other
Total Operating Expenses
Operating Income (Loss)
Non-operating Revenues (Expenses):
Interest revenue
Interest expense
Gain (loss) on disposal of fixed assets
Total Non-operating
Revenues(Expenses)
Income (Loss) Before Contributions and Transfers
Capital contributions
Transfers in
Changes in Net Assets
Net Assets:
Beginning of Year
Changes in Net Assets
End of Fiscal Year
See Notes to Financial Statement 28
Business -Type
1,211,222
Activities -
68,320
Enterprise Funds
Governmental
71,491
Activities -
Golf
Internal
Course
Service Funds
$ 3,540,748 $ 1,211,222
3,540,748
1,211,222
68,320
87,166
-
71,491
-
109,665
3,720,778
107,554
-
125,056
614,648
695,068
60,058
31,722
4,463,804
1,227,722
(923,056) (16,500)
1,817 238,164
(56,369) -
1.327
(54,552) 239,491
(977,608) 222,991
- 960,593
874,645 -
(102,963) 1,183,584
40,409,526 20,271,389
(102,963) 1,183,584
$ 40,306,563 $ 21,454,973
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2007
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to supplies for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non -Capital
Financing Activities:
Repayment made to other funds
Advance from other funds
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
See Notes to Financial Statement 29
Business -Type
Activities -
Enterprise
Funds Governmental
Activities -
Golf Internal
Course Service Funds
$ 3,507,675 $ 1,211,221
(3,876,124) (389,649)
(80,525) (74,358)
(448,974) 747,214
(875,674)
1,765,042
889,368
(356,856)
(56,369)
(101,094)
12,850
(413,225) (88,244)
1,706 234,710
1,706 234,710
28,875 893,680
68,702 4,081,614
$ 97,577 $ 4,975,294
CITY OF LA QUINTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2007
Business -Type
Activities -
Enterprise
Funds
Governmental
Activities -
Golf
Internal
Course
Service Funds
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
$ (923,056)
$ (16,500)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
614,648
695,068
(Increase) decrease in accounts receivable
(18,993)
-
(Increase) decrease in prepaid expense
50,724
(Increase) decrease in inventories
26,311
(Increase) decrease in due from other governments
(226)
(330)
Increase (decrease) in accounts. payable
(121,599)
14,689
Increase (decrease) in accrued liabilities
(12,205)
(605)
Increase (decrease) in unearned revenue
(13,854)
Increase (decrease) in compensated absences
-
4,168
Total Adjustments
474,082
763,714
Net Cash Provided (Used) by
Operating Activities
$ (448,974)
$ 747,214
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds
Increase of assets/liabilities resulting from the initiation
of a capital lease
See Notes to Financial Statement 30
168,308
$ 960,593
CITY OF LA QUINTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2007
Assets:
Cash and investments
Receivables:
Taxes
Interest
Total Assets
Liabilities:
Deposits
Total Liabilities
See Notes to Financial Statement 31
Agency
Funds
$ 908,482
23,317
3,736
$ 935,535
$ 935,535
$ 935,535
THIS PAGE INTENTIONALLY LEFT BLANK
32
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of Significant Accounting Policies
a. Reporting Entity
The City of La Quinta ("the City") was incorporated May 1, 1982, under the general laws
of the State of California. In November 1996, the City became a charier City. The City
operates under the Council — Manager form of government.
The City provides many community services including public safety, highway and street
maintenance, health and social services, cultural and leisure services, public
improvements, planning and zoning services, and community development services.
The accounting policies of the City conform to generally accepted accounting principles
as applicable to governments. As required by generally accepted accounting principles,
these financial statements present the government and its component units, which are
entities for which the government is considered to be financially accountable. The City is
considered to be financially accountable for an organization if the City appoints a voting
majority of that organization's governing body and the City is able to impose its will on
that organization or there is a potential for that organization to provide specific financial
benefits to or impose specific financial burdens on the City. The City is also considered
to be financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval
from the City). In certain cases, other organizations are included as component units if
the nature and significance of their relationship with the City are such that their exclusion
would cause the City's financial statements to be misleading or incomplete.
All of the City's component units are considered to be blended component units. Blended
component units, although legally separate entities, are, in substance, part of the
government's operations and so data from these units are reported with the interfund
data of the primary government.
The following organizations are considered to be component units of the City:
La Quinta 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.
33
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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. Government -Wide and Fund Financial Statements
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.
Government -wide Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the
primary government and its component units. For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of
a given function or segment are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. 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 revenuE:s are netted with program expenses in the
statement of activities to present the net cost of each program. Taxes and other items
not properly included among program revenues are reported instead as general
revenues.
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.
34
City of La Quinta
Notes to Financial Statements (Continued)
Note 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 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 components units. Fiduciary funds of the
City primarily represent assets held by the City in a custodial capacity for other
individuals or organizations.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government -wide Financial Statements
The government -wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the
proprietary fund and fiduciary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider have been met.
Governmental Funds
In the fund financial statements, governmental funds are presented using the
modified-accural 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 accured for the reporting period. The City uses
a 30 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 delivered 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.
35
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses)
in net current assets. Accordingly, they are said to present a summary of sources
and uses of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources," since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables. are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the
year that resources were expended, rather than as fund assets. The proceeds of
long-term deist 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.
Proprietary 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 proprietary
fund financial statements, rather than reported as expenditures. Proceeds of
long-term debt are recorded as a liability in the proprietary fund financial statements,
rather than as an other financing source. Amounts paid to reduce long-term
indebtedness of the proprietary funds are reported as a reduction of the related
liability, rather than as expenditures.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the Enterprise Funds are
36
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
charges to customers for sales and services. Operating expenses for Enterprises
Funds include the cost of sales and services, administrative expenses and
depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
Private -sector standards of accounting and financial reporting issued prior to
December 1989, generally are followed in both the government -wide and proprietary
fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments
also have the option of following subsequent private -sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The
government has elected not to follow subsequent private -sector guidance.
Fiduciary Funds
The City's fiduciary funds are agency funds. Agency funds are custodial in nature.
Assets equal liabilities. Agency funds are presented using the accrual basis of
accounting.
d. Major Funds, Internal Service Funds and Fiduciary Fund Types
The City's major governmental funds are as follows:
General Fund — This fund is the primary fund of the City and 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.
Low f Moderate Income Housino — Proiect Area No 2 Fund — This fund is used to
account for the required 20% set aside of property tax increments that is legally
restricted for increasing and improving housing for low and moderate income
households.
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 La Quinta Redevelopment Agency.
2004 Low I Mod 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.
Redeveio rnent Agency Project Area No. 1 - Debt Service 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 Proiect Area No. 2 - Debt Service Fund — This Debt service
fund is used to account for the accumulation of resources for the payment of debt
service for bond principal, interest and trustee fees for 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.
37
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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 for
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.
e. Assets, Liabilities and Net Assets or Equity
Investments -
For Financial reporting purposes, investments are adjusted to their fair value.
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., Some investments are valued on an unamortized cost basis. For these
investments, there is no material difference from fair value.
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.
Cash and 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 fund's 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 proprietary
funds is considered cash and cash equivalents.
Inventory
Inventory is valued at cost using the first in / first out (FIFO) method. The City uses
the consumption method of accounting for inventories.
38
City of La Quinta
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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.
Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records
are available and at an estimated historical cost where no historical records exist.
Contributed capital assets are valued at their estimated fair market value at the date
of the contribution. Generally, capital asset purchases in excess of $5,000 are
capitalized if they have an expected useful life of three years or more.
Capital Assets include public domain (infrastructure) consisting of certain
improvements including roads, streets, sidewalks, medians, and storm drains.
Capital assets used in operations are depreciated over their estimated useful lives
using the straight-line method in the government -wide financial statements and in the
fund financial statements of the proprietary funds. Depreciation is charged as an
expense against operations and accumulated depreciations is reported on the
respective balance sheet.
The following schedule summarizes capital asset useful lives:
Buildings and improvements
10-30 years
Equipment and furniture
3-20 years
Vehicles
5-10 years
Infrastructure
10-50 years
Software
5-10 years
Compensated Absences
Sick time is vested on a percentage based on number of years employed at the City.
Maximum accumulation of sick and vacation is 30 and 40 days, respectively.
Upon termination or retirement, permanent employees are entitled to receive
compensation at their current base salary for all unused vacation leave. If an
employee terminates with a minimum of two years service, the employee is entitled to
receive 25% of the value of his unused sick leave. The percentage increases by
25% for each five-year period until the employee is entitled to 75% of the value of his
unused sick leave. This will occur upon the completion of ten years of continuous
employment.
Fund Balance
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.
39
City of La Quinta
Notes to Financial Statements (Continued)
II. STEWARDSHIP
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
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 or fund are approved by
City Council. Additional appropriations in the amount of $254,404,081 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.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods
and services. These commitments are recorded for budgetary control purposes in
the General, Special Revenue, and similar governmental funds. Encumbrances
outstanding at year-end are reported as a reservation of fund balance. They
represent the estimated amount of the expenditure ultimately to result if unperformed
contracts in process at year end are completed. They do not constitute expenditures
or estimated liabilities.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
b. At June 30, 2007, the following funds had deficit fund balances:
Capital Projects Funds:
Parks and Recreation (1,853,442)
Civic Center (3,031,324)
Library Development (2,025,431)
Fire Facility (944,671)
40
City of La Quinta
Notes to Financial Statements (Continued)
Note 2:
Note 3
Stewardship, Compliance and Accountability (Continued)
c. Excess of expenditures over appropriations are as follows:
Expenditures for the year ended June 30, 2007, exceeded the appropriations of the
General Fund and major special revenue funds as follows:
General Fund:
Public Safety
Building
Community Services
Park maintenance
Public Works
Construction management
Budget Actual Variance
$ 1,152,255 $ 1,276,504 $ (124,249)
1,249,685 1,306,407
369,729 1,150,296
III. DETAILED NOTES ON ALL FUNDS
Cash and Investments
(56,722)
(780, 567)
Cash and investments as of June 30, 2007, are classified in the accompanying financial
statements as follows:
Statement of Net Assets:
Cash and investments
Cash with fiscal agent
Statement of Fiduciary Net Assets:
Cash and investments
Total cash and investments
$ 150,501,241
61,492,315
908,482
$ 212,902,038
Cash and investments as of June 30, 2007, consist of the following:
Cash on hand $ 500
Deposits with financial institutions (2,340,173)
Investments 215,241,711
Total cash and investments $ 212,902,038
investments Authorized by the California Government Code and the Entity's Investment
Policy
The table below identifies the investment types that are authorized by the California
Government Code and the City's investment policy. The table also identifies certain
provisions of the California Government Code (or the City'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 City, rather than the general provisions of the
California Government Code or the City's investment policy.
41
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Authorized By
Investment Types Investment *Maximum
Authorized by State Law Policy Maturity
*Maximum *Maximum
Percentage of Investment In One
Portfolio Issuer
Local Agency Bonds
No
5 years
None
None
U.S. Treasury Obligations
Yes
5 years
None
None
U.S. Agency Securities
Yes
2 years
None
$10 million
Banker's Acceptances
No
180 days
40%
30%
Commercial Paper
Yes
90 days
30%
$3 million
Negotiable Certificates of Deposit
No
5 years
60%
None
Repurchase Agreements
No
1 year
None
None
Reverse Repurchase Agreements
No
92 days
20% of base value
None
Medium -Term Notes
Yes
2 years
15%
$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 (LAIF)
Yes
N/A
25%
$40 million
JPA Pools (other investment pools)
No
N/A
None
None
* Based on state law requirements or investment policy requirements, whichever is more restrictive
Investments Authorized by Debt Agreements
Investments 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
City'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.
Maximum
Maximum Percentage
Authorized Investment Type Maturity Allowed
U.S. Treasury Obligations
None
None
U.S. Agency Securities
None
None
Banker's Acceptance
360 days
None
Commercial Paper
270 days
None
Money Market Mutual Funds
N/A
None
Negotiable Certificates of Deposit
360 days
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 City
manages its exposure to interest rate risk is by purchasing a combination of short term and
tong 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.
42
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Information about the sensitivity of the fair values of the City'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 City's investments by maturity:
Investment Type
U.S. Treasury notes
Federal agency securities:
Federal Home Loan Mortgage Corp
Federal Home Loan Bank
Federal Farm Credit Bank
Commercial paper
State investment pool
Held by bond trustee:
Money market funds
U.S. Treasury bills
Total
Total
-
Remaining Maturity (in Months)
3 Months 4 to 6
or Less Months 7 to 12 Months
$ 40,857,602 $ 40,857,602
9,714,000
2,496,750
- 7,217,250
9,984,375
-
- 9,984,375
9,904,188
4,999,500
4,904,688
31,762,935
28,828,815
- 2,934,120
51,526,296
51,526,296
_
6,683,837
6,683,837
- -
54,808,478
7,911,300
46,897,178
$ 215,241,711 $ 143,304,100 $ 46,897,178 $ 25,040,433
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization.
The City's investment policy limits investments in commercial paper and federal agency
securities to those rated "A" or higher by Standard and Poor's (S&P) or by Moody's. As of
June 30, 2007, the City invested in,Federal Home Loan Mortgage Corp., Federal Home Loan
Bank and Federal Farm Credit Bank which were all rated "AAA" by Moody's and by S&P. All
securities were investment grade and were legal under State law. Investments in U.S.
treasuries are not considered to have credit risk and, therefore, their credit quality is not
disclosed. As of June 30, 2007, the City's investments in money market mutual funds are
rated "Aaa" by Moody's and the City's investments in external investment pools are unrated.
Concentration of Credit Risk
The investment policy of the City 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). As of June 30, 2007, there were
no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total City investments.
43
City of La Quinta
Notes to Financial Statements (Continued)
Note 3: Cash and Investments (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the City'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 City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro -rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relations 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.
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards for investments in participating interest earning investment
contracts, external investment pools, equity securities, option contracts, stock warrants and
stock rights that have readily determinable fair values. Accordingly, the City reports its
investments at fair value in the balance sheet. All investment income, including changes in
the fair value of investments, is recognized as revenue in the operating statement.
Under California law, property taxes are assessed and collected by the counties up to 1 % of
assessed value, plus other increases approved by the voters. The property taxes are
recorded initially in a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of La Quinta accrues only those taxes that are received from the County
within sixty days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
44
City of La Quinta
Notes to Financial Statements (Continued)
Note 4: Property Taxes
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, an 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.
Note 5: 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 based on 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 balance at June 30, 2007.
45
Outstanding
Balance at
June 30, 2007
$ 3,519,860
9,500,000
46,257
$ 13,066,117
City of La Quinta
Notes to Financial Statements (Continued)
Note 6: Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2007, is as
follows:
Beginning
Ending
Balance at
Balance at
July 1, 2006
Additions
Deletions Transfers
June 30, 2007
Governmental Activities:
Capital assets, not being depreciated:
Land
$ 53,943,514 $
21,270,271
$ 136,000 $
$ 75,077,785
Right of way
255,685,006
5,032,806
- -
260,717,812
Construction -in -progress
26,827,331
36,559,473
3,889,746 (16,834,914)
42,662,144
Total Capital Assets,
Not Being Depreciated
336,455,851
62,862,550
4,025,746 (16,834,914)
378,457,741
Capital assets, being depreciated:
Buildings and improvements
36,661,655
24,540
40,000 617,726
37,263,921
Equipment and furniture
1,907,787
180,801
- (42,493)
2,046,095
Vehicles
1,141,717
224,821
56,103 56,294
1,366,729
Infrastructure
113,346,331
3,994,635
2,475,797 15,328,742
130,193,911
Total Capital Assets,
Being Depredated
153,057,490
4,424,797
2,571,900 15,960,269
170,870,656
Less accumulated depreciation:
Buildings and improvements
7,979,275
1,267,263
16,000 -
9,230,538
Equipment and furniture
1,152,822
137,848
-
1,290,670
Vehicles
756,311
132,710
44,579
844,442
Infrastructure
58,833,149
3,367,099
2,050,865 -
60,149,383
Total Accumulated
Depreciation
68,721 ,557
4,904,920
2,111,444 -
71,515,033
Total Capital Assets,
Being Depredated, Net
84,335,933
(480,123)
460,456 15,960,269
99,355,623
Governmental Activities
Capital Assets, Net
$ 420,791 ,784 $
62,382,427
$ 4,486,202 $ (874,645) "
$ 477,813,364
(") Relates to transfers between Governmental activities and Business -Type activities.
Depreciation
expense was charged to the following
functions in the Statement of Activities:
General government
$ 94,697
Public safety
572,017
Planning and development
19,040
Community services
758,873
Public works
3,460,293
Total governmental
activities
$ 4,904,920
City of La Quinta
Notes to Financial Statements (Continued)
Note 6: Capital Assets (Continued)
Capital asset activity for business -type activities for the year ended June 30, 2007, is as
follows:
Business -Type Activities:
Capital assets, not being depreciated
Land
Total Capital Assets,
Not Being Depreciated
Capital assets, being depreciated:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Capital Assets,
Being Depreciated
Less accumulated depreciation:
Buildings and improvements
Equipment and furniture
Vehicles
Software
Total Accumulated
Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities
Capita I Assets, Net
Beginning
Ending
Balance at
Balance at
July 1, 2006
Additions Deletions
Transfers
June 30, 2007
$ 35,603,648
$ $
$ 854,499
$ 36,458.147
35,603 ,648
-
854,499
36,458,147
6,571 ,285
-
20,146
6,591,431
1,678,748
92,101
-
1,770,849
20,348
- -
20,348
20,255
- -
-
20.255
8,290,636
92,101
20,146
8,402.883
337,009
232,719
-
569,728
379,321
373,809
753,130
6,104
4,069
10,173
6,076
4,051
10,127
728,510 614,648
7,562,126 (522,547)
$ 43,1.65,775 $ (522,547) $
1,343,158
20,146 7,059,726
$ 874,645 $ 43,517,873
(*) Relates to transfers between Governmental activities and Business -Type activities.
Depreciation expense was charged to the following function in the Statement of Activities:
Golf Course
47
$ 6'14,648
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities = Governmental Activities
a. Changes in Long -Term Debt
The following is a summary of changes in governmental long-term
liabilities
of the City for
the fiscal year ended June 30, 2007:
Beginning
Adjusted
Balance at
Beginning
Balance at
Due within
July 1, 2007 Adjustments"
Balance Additions
Deletions
June 30, 2007
one year
City
Compensated ansences payable $ 608,266 $
$ 608,266 $ 806,305 $
680,516
$ 734,055
$ 762,030
Due to the Coachella Valley
Association of Governments 328,311
328,311 -
50,000
278,311
50,000
Developer Agreement Payable 776,030
776,030
132,491
643,539
143,753
Redevelopment Agency:
RDA Project Area No. 1:
Tax allocation bonds 138,985,520 2,799,480
141,785,000
2,640,000
139,145,000
2,795,000
Pass-through agreements payable:
Coachella Valley
Unified School District 5,186,627 -
5,186,627
755,449
4,431,178
770,558
RDA Project Area No. 2:
Tax allocation bonds 6,130,000
6,130,000
105,000
6,025,000
110,000
Due to County of Riverside 1,850,000
1,850,000
100,000
1,750,000
150,000
Financing Authority:
Revenue bonds 93,370,392 2,139,608 95,510,000 1,865,000 93,645,000 1,930,000
Total $ 247,235,146 $ 4,939,088 $ 252,174,234 $ 806,305 $ 6,328,456 246,652,083 $ 6,711,341
Less: Unamortized premiums/discounts (877,230)
Net Long -Term Debt $ 245,774,853
Adjustments were made to remove the unamortized cost of issuance from the long-term debt balance.
For the governmental activities, accrued employee benefits are generally liquidated by
the general fund.
b. A description of individual issues of debt (excluding defeased bonds) outstanding
as of June 30, 2007, is as follows:
Due to the Coachella Vallev Association of the 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 1-10 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, 2007, the balance
payable was $278,311.
M
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum annual requirements to amortize the payable to Coachella Valley
Association of Governments as of June 30, 2007, are as follows:
Principal
2007-2008
$ 50,000
2008-2009
50,000
2009-2010
50,000
2010-2011
50,000
2011 -2012
50,000
2012-2017
28,311
Totals $ 278,311
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, 2007, 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, 2007, is
$643,539.
The minimum annual requirements to amortize the developer agreement payable as of
June 30, 2007, are as follows:
Totals $ 643,539 $ 150,277
Tax Allocation Bonds
As of June 30, 2007, the following issuances of Tax Allocation Bonds were outstanding:
Series 1994 Proiect Area No. 1
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.
49
Principal
Interest
2007-2008
$ 143,753
$ 54,701
2008-2009
155,972
42,482
2009-2010
169,230
29,224
2010-2011
174,584
23,870
Totals $ 643,539 $ 150,277
Tax Allocation Bonds
As of June 30, 2007, the following issuances of Tax Allocation Bonds were outstanding:
Series 1994 Proiect Area No. 1
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.
49
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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 just 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, 2007, is $12,525,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
2007-2008
2008-2009
2009-2010
2010-2011
2011 -2012
2012-2017
Series 1998 Proiect Area No. 1
Principal
$ 1,740,000
1,865,000
2,000,000
2,145,000
2,305,000
2,470,000
Interest
$ 850,815
719,233
578,160
426,868
264,443
90,155
$ 12,525,000 $ 2,929,674
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 solely from pledged tax increment revenues of
Project Area No. 1.
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, 2007, is $15,760,000.
50
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Series 1998, Proiect 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, 2007, is $6,025,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal
Interest
2007-2008
$ -
$ 819,520
2008-2009
-
819,520
2009-2010
-
819,520
2010-2011
-
819,520
2011 -2012
-
819,520
2012-2017
2,835,000
3,812,250
2017-2022
4,455,000
2,805,270
2022-2027
5,740,000
1,485,900
2027-2032
2,730,000
143,780
Totals
$ 15,760,000
$ 12,344,800
Series 1998, Proiect 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, 2007, is $6,025,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Totals $ 6,025,000 $ 5,194,482
51
Principal
Interest
2007-2008
$ 110,000
$ 310,135
2008-2009
115,000
305,184
2009-2010
120,000
299,550
2010-2011
125,000
293,272
2011-2012
130,000
286,738
2012-2017
765,000
1,322,859
2017-2022
975,000
1,100,075
2022-2027
1,270,000
807,188
2027-2032
1,635,000
428,006
2032-2037
780,000
41,475
Totals $ 6,025,000 $ 5,194,482
51
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
Series 2001 Promect 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, 2007,
is $48,000,000 with an unamortized discount of $419,452.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
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, 2007,
is $37,675,000 with an unamortixed discount of $368,432.
52
Principal
Interest
2007-2008
$ -
$ 2,430,720
2008-2009
-
2,430,720
2009-2010
2,430,720
2010-2011
2,430,720
2011-2012
-
2,430,720
2012-2017
6,755,000
11,498,975
2017-2022
10,525,000
9,200,475
2022-2027
13,455,000
6,186,173
2027-2032
17,265,000
2,288,753
Totals
$ 48,000,000
$ 41,327,976
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, 2007,
is $37,675,000 with an unamortixed discount of $368,432.
52
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Totals $ 37,675,000 $ 34,446,819
Series 2003, Project Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quinta Redevelopment
Project Area No. 1. The 2003 tax allocation bonds were issued at a discount of
$277,200 and issuance costs of $629,191.
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.
The principal balance of outstanding bonds at June 30, 2007, is $25,185,000 with an
unamortized discount of $241,180.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Principal
Interest
2007-2008
$ 615,000
$ 1,849,616
2008-2009
635,000
1,829,914
2009-2010
660,000
1,807,556
2010-2011
680,000
1,782,926
2011 -2012
705,000
1,756,429
2012-2017
3,755,000
8,287,856
2017-2022
4,710,000
7,245,156
2022-2027
6,025,000
5,899,091
2027-2032
12,385,000
3,795,959
2032-2037
7,505,000
192,316
Totals $ 37,675,000 $ 34,446,819
Series 2003, Project Area No. 1
On September 1, 2003, the Agency issued tax allocation bonds in the amount of
$26,400,000 to finance capital projects benefiting the La Quinta Redevelopment
Project Area No. 1. The 2003 tax allocation bonds were issued at a discount of
$277,200 and issuance costs of $629,191.
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.
The principal balance of outstanding bonds at June 30, 2007, is $25,185,000 with an
unamortized discount of $241,180.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Totals $ 25,985,000 $ 25,995,146
53
Principal
Interest
2007-2008
$ 440,000
$ 1,549,882
2008-2009
460,000
1,530,802
2009-2010
475,000
1,508,106
2010-2011
505,000
1,481,401
2011 -2012
530,000
1,453,198
2012-2017
3,130,000
6,763,557
2017-2022
4,220,000
5,636,456
2022-2027
5,730,000
4,085,165
2027-2032
7,815,000
1,926,043
2032-2037
1,880,000
60,536
Totals $ 25,985,000 $ 25,995,146
53
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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, 2007, totaled
$4,431,179. 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, 2007, are as follows:
Totals $ 4,431,178
Due to County of Riverside - Pro'ect Area No. 2
Based on an agreement dated July 5, 1989, between the Agency and the County of
Riverside, until the tax increment reaches $5,00,000 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, 2007, Is
$1,750,000.
The minimum annual requirements to amortize amounts due to the County of
Riverside as of June 30, 2007, are as follows:
Principal
2007-2008
$ 770,558
2008-2009
785,968
2009-2010
801,688
2010-2011
817,722
2011-2012
834,076
2012-2017
421,166
Totals $ 4,431,178
Due to County of Riverside - Pro'ect Area No. 2
Based on an agreement dated July 5, 1989, between the Agency and the County of
Riverside, until the tax increment reaches $5,00,000 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, 2007, Is
$1,750,000.
The minimum annual requirements to amortize amounts due to the County of
Riverside as of June 30, 2007, are as follows:
Totals $ 1,750,000
54
Principal
2007-2008
$ 150,000
2008-2009
200,000
2009-2010
200,000
2010-2011
200,000
2011-2012
250,000
2012-2017
250,000
2017-2022
250,000
2022-2027
250,000
Totals $ 1,750,000
54
City of La Quinta
Notes to Financial Statements (Continued)
Note 7: Changes in Long -Term Liabilities — Governmental Activities (Continued)
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 $5,150,000 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 and October 1, 2008, in amounts ranging
from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55% and
mature on October 1, 2018.
A surety agreement has been purchased to satisfy the bond reserve requirement.
There are certain limitations regarding the issuance of parity debt as further
described in the official statement. The amount of principal outstanding at June 30,
2007, is $5,900,000.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
Totals $ 5,900,000 $ 2,171,880
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the
amount of $90,000,000 to finance projects benefiting low and moderate income
housing in La Quinta Redevelopment Project Area No. 1 and 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
2,004 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.
55
Principal
Interest
2007-2008
$ 360,000
$ 315,880
2008-2009
380,000
296,450
2009-2010
400,000
275,280
2010-2011
420,000
252,525
2011 -2012
445,000
228,521
2012-2017
2,630,000
732,045
2017-2022
1,265,000
71,179
Totals $ 5,900,000 $ 2,171,880
2004 Series A Local Agency Revenue Bonds
On June 29, 2004, the La Quinta Financing Authority issued revenue bonds in the
amount of $90,000,000 to finance projects benefiting low and moderate income
housing in La Quinta Redevelopment Project Area No. 1 and 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
2,004 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.
55
City of La Quinta
Notes to Financial Statements (Continued)
Note 7:
Changes in Long -Term Liabilities — Governmental Activities (Continued)
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, 2007, is $87,745,000 with an unamortized premium of
$151,834.
The minimum annual requirements to amortize the bond payable as of
June 30, 2007, are as follows:
2007-2008
2008-2009
2009-2010
2010-2011
2011 -2012
2012-2017
2017-2022
2022-2027
2027-2032
2032-2037
Principal
$ 1,570,000
1,615,000
1,670,000
1,740,000
1,805,000
10,405,000
13,385,000
17,280,000
22,115,000
16,160,000
Interest
$ 4,356,806
4,304,994
4,243,331
4,175,131
4,099,719
19,076,413
16,001,125
12,014,144
7,061,797
1,269,975
Totals 1 87,745,000 $ 76,603,435
Note 8: Changes in Long -Term Liabilities — Business -type Activities
Changes in business -type long-term liabilities for the year ended June 30, 2007, were as
follows:
Balance at Balance at Due within
Golf Course: July 1, 2006 Additions Deletions Jules, 2007 one year
Capital leases payable $ 1,090,602 $ 164,308 $ 429,062 $ 825,848 $ 371,444
The City of La Quints entered into several capital lease agreements for the operation of the
SilverRock Golf Resort, 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.
56
City of La Quinta
Notes to Financial Statements (Continued)
Note 8: Changes in Long -Term Liabilities — Business -type Activities (Continued)
Obligations under capital leases are as follows:
National City Golf Finance
The present value of the minimum lease payment on golf carts was capitalized at
$211,035 using an incremental borrowing interest rate of 6.5% at the inception of
the lease. The lease is payable in 36 monthly installments of $6,468, which began
May 30, 2005. $ 62,794
The present value of the minimum lease payment on golf equipment was capitalized
at $273,642 using an incremental borrowing interest rate of 9.68% at the inception
of the lease. The lease is payable in 60 monthly installments of $5,771, which began
May 1, 2005. 153,232
The present value of the minimum lease payment on golf equipment was capitalized
at $543,118 using an incremental borrowing interest rate of 9.0% at the inception of
the lease. The lease is payable in 60 monthly installments of $9,318, which began
January 1, 2005. 275,466
The present value of the minimum lease payment on golf equipment was capitalized
at $50,911 using an incremental borrowing interest rate of 8.0% at the inception of
the lease. The lease is payable in 48 monthly installments of $1,243, which began
November 28, 2004. 18,803
The present value of the minimum lease payment on golf carts was capitalized at
$26,674 using an incremental borrowing interest rate of 7.0% at the inception of the
lease. The lease is payable in 36 monthly installments of $824, which began
February 1, 2006. 14,771
The present value of the minimum lease payment on lawn equipment was
capitalized at $90,554 using an incremental borrowing interest rate of 6.99% at the
inception of the lease. The lease is payable in 36 monthly installments of $2,796,
which began October 1, 2006. 69,658
The present value of the minimum lease payment on golf equipment was capitalized
at $21,569 using an incremental borrowing interest rate of 7.5% at the inception of
the lease. The lease is payable in 48 monthly installments of $522, which began
December 1, 2005. 13,793
VGM Financial Services
The present value of the minimum lease payment on software was capitalized at
$63,525 using an incremental borrowing interest rate of 10.74% at the inception of
the lease. The lease is payable in 60 monthly installments of $1,373, which began
April 1, 2005. 35,982
TFG-California, L.P.
The present value of the minimum lease payment on a GPS system was capitalized
at $284,650 using an incremental borrowing interest rate of 7.3% at the inception of
the lease. The lease is payable in 48 monthly installments of $6,840, which began
November 11, 2005. 181,349
Total capital leases payable as of June 30, 2007 $ 825,848
57
City of La Quinta
Notes to Financial Statements (Continued)
Note 8:
Note 9
Note 10:
Changes in Long -Term Liabilities — Business -type Activities (Continued)
The following schedule summarizes the debt to maturity payments for capital leases:
Principal Interest
2007-2008 $ 371,444 $ 38,085
2008-2009 312,570 18,217
2009-2010 141,834 2,288
Total $ 825,848 $ 58,590
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, therefore, they are not included in the long-term liabilitys in the
accompanying financial statements. 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 following is a summary of Improvement Bonds outstanding
at June 30, 2007:
Amount
Outstanding at
Proceeds Maturity Date Interest Rate June 30, 2007
Assessment District No. 92-1 1,880,891
Assessment District No. 97-1 705,262
Assessment District No. 2001-1 2,285,000
Conduit Debt Financing
9/2/2008 5.00% - 5.40% 240,000
9/2/2018 4.10% - 5.20% 490,000
9/2/2015 5.00% - 6.60% 1,210,000
2002 Series B Multifamily Housing Revenue Bonds
In April 2002, the La Quinta Redevelopment Agency issued $3,000,000 of 2002 Series B
Multifamily Housing Revenue Bonds to provide financing for the acquisition, construction and
equipping of a multifamily senior rental housing project known as Miraflores Apartments
located in the City of La Quinta. The bonds mature on June 1, 2035, and bear interest at
5.5% per annum. Outstanding bonds at June 30, 2007, are $2,910,000.
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 issue,
but payable solely from the security.
58
City of La Quinta
Notes to Financial Statements (Continued)
Note 11: Interfund Receivables and Payables
The composition of current interfund receivable and payable as of June 30, 2007, are as
follows:
DUE TO OTHER FUNDS
2004 Low/Mod Non -Major
Bond Governmental TOTAL
DUE FROM OTHER FUNDS
General Fund $ - $ 18,780 $ 18,780
RDA PA #2 Debt Service 6,186,049 - 6,186,049
Total: $ 6,186,049 $ 18,780 $ 6,204,829
The due to the General Fund and RDA PA#2 Debt Service Fund were the results of routine
interfund transactions not cleared prior to year-end.
The composition of non-current interfund receivable and payable as of June 30, 2007, are as
follows:
ADVANCES FROM OTHER FUNDS
RDA PA #1 RDA PA #2 Non -Major
Debt Service Debt Service Golf Course Governmental TOTAL
ADVANCES TO OTHER FUNDS
General Fund $ 12,000,001 $ 10,100,000 $ 2,466,003 $ 3,031,325 $ 27,597,329
Non -Major Governmental - - - 4,823,543 4,823,543
Total: $ 12,000,001 $ 10,100,000 $ 2,466,003 $ 7,854,868 $ 32,420,872
a) As of June 30, 2007, the amount due to the General Fund from RDA PA No. 1 Debt
Service was $12,000,001. This consists of an outstanding advance of $6,000,001 loaned
to the Redevelopment Agency with repayment beginning in 2030/31 and accrued 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.
b) As of June 30, 2007, the amount due to the General Fund from RDA PA No. 2 Debt
Serviced was $10,100,000. The advance loaned to the Redevelopment Agency with
repayment beginning in 2035/36 and accrued interest at 10% per annum.
c) As of June 30, 2007, the General Fund has advanced to the Golf Course fund
$2,466,003. The advances accrue interest at the City's investment pool rate and are to
be repaid by the golf course out of future profits.
d) In July 2002, an advance of $4,167,912 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, 2007, the remaining balance of the advance for the La Quinta Community Park
is $1,853,442.
e) 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, 2007, is $2,025,431.
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, 2007,
the remaining balance of the advances is $944,671.
59
City of La Quinta
Notes to Financial Statements (Continued)
Note 11: Interfund Receivables and Payables (Continued)
g) In September 2006, an advance up to $9,615,094 for the City Hall expansion from the
General Fund to the Civic Center Developer Impact Fee Fund was approved. As of
June 30, 2007 the Civic Center expansion was under construction and the amount of the
advance was $3,031,324 outstanding. The advance accrues interest that would have
been earned by the Local Agency Investment Fund.
Note 12: Interfund Transfers
a) $4,448,138 was transferred from the Low/Moderate Housing Project Area No. 1 Fund
to the RDA Project Area No.1 Debt Service Fund to pay a portion of the 2004 Series
A Local Agency Revenue Bond debt service.
b) $1,173,210 was transferred from the Low/Moderate Housing Project Area No. 2 Fund
to the Capital Improvement Fund to pay for various capital projects. $1,954,560 was
transferred from the Low/Moderate Housing Project Area No. 2 Fund to the RDA
Project Area No. 2 Debt Service Fund to pay a portion of the 2004 Series A Local
Agency Revenue Bond debt service.
C) $4,068,439 and $1,954,560 was transferred from the RDA Project Area No. 1 and
2 Debt Service 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) $4,336,775 was transferred to the Capital Improvement Fund from the RDA Capital
Projects — PA No. 1 Fund to fund various capital projects throughout the City.
e) $16,564,295 was transferred to the Capital Improvement Fund from the RDA 2004
Low/Mod Bond Fund for various capital projects funded by bond proceeds.
f) The Transportation Fund transferred to the Capital Improvement Fund $1,597,775 to
fund various transportation related capital projects fund. .
g) $1,437,506 was transferred to the Capital Improvement Fund from the General Fund
to fund various capital projects throughout the City,
.E
TRANSFERS OUT
Low/Moderate
Income
Housing
RDA PA #1 RDA PA #2
2004
Non -Major
General Fund
PA #2
Debt Service Debt Service
Low/Mod Bond
Governmental
TOTAL
TRANSFER5IN
General Fund
RDA PA #1 Debt Service
$
$
$ - $ -
$ -
$ 308,686
$ 308,686
RDA PA #2 Debt Service
-
1,954,560
- -
-
-
4,448,138
4;448,138
Capital Improvement
1,437,506
1,173,210
-
-
16,564,295
-
13,035,999
1,954,560
32,211,010
Low/Moderate Income
Housing PA #2
-
-
Non -Major Governmental
2,000
-
-
4,068,349 1,954,560
-
16„000,000
16,000,000
Total:
$ 1,439,505
$ 3.127,770
$ 4,068,349 $ 1,954,560
-
$ 16,5 44,295
7273
$ 33,800,096
6,032,182
$ 60,954,576
The following describes the major transfers in and transfers
out included
in the financial
statements:
a) $4,448,138 was transferred from the Low/Moderate Housing Project Area No. 1 Fund
to the RDA Project Area No.1 Debt Service Fund to pay a portion of the 2004 Series
A Local Agency Revenue Bond debt service.
b) $1,173,210 was transferred from the Low/Moderate Housing Project Area No. 2 Fund
to the Capital Improvement Fund to pay for various capital projects. $1,954,560 was
transferred from the Low/Moderate Housing Project Area No. 2 Fund to the RDA
Project Area No. 2 Debt Service Fund to pay a portion of the 2004 Series A Local
Agency Revenue Bond debt service.
C) $4,068,439 and $1,954,560 was transferred from the RDA Project Area No. 1 and
2 Debt Service 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) $4,336,775 was transferred to the Capital Improvement Fund from the RDA Capital
Projects — PA No. 1 Fund to fund various capital projects throughout the City.
e) $16,564,295 was transferred to the Capital Improvement Fund from the RDA 2004
Low/Mod Bond Fund for various capital projects funded by bond proceeds.
f) The Transportation Fund transferred to the Capital Improvement Fund $1,597,775 to
fund various transportation related capital projects fund. .
g) $1,437,506 was transferred to the Capital Improvement Fund from the General Fund
to fund various capital projects throughout the City,
.E
City of La Quinta
Notes to Financial Statements (Continued)
IV. OTHER INFORMATION
Note 13: Defined Benefit Pension Plan
Plan Description
The City of La Quinta contributes to the California Public Employees Retirement System
(PERS), a cost sharing multiple -employer public employee defined benefit pension plan.
PERS provides retirement and disability benefits, annual cost -of -living adjustments and death
benefits to plan members and beneficiaries. PERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit
provisions and all other requirements are established by State statute and City ordinance.
Copies of PERS' annual financial report may be obtained from their executive office:
400 P Street, Sacramento, CA 95814.
Funding Policy
Participants are required to contribute 8% 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; the current rate is 12.856% of annual
covered payroll. The contribution requirements of plan members and the City are established
and may be amended by PERS.
Annual Pension Cost
For 2007, the City's annual pension cost of $763,527 for PERS was equal to the City's
required and actual contributions.
Three -Year Trend Information for PERS
Required Percentage
Fiscal Year Contributions Contributed
6/30/2005 $ 336,348 100%
6/30/2006 400,631 100%
6/30/2007 763,527 100%
For fiscal years 2003-2007, the City of La Quinta participated in risk pooling. Risk pooling
consists of combining assets and liabilities across employers to produce large groups where
the impact of a catastrophic demographic event is shared among all employers of the same
risk pool. Participation in risk pools is mandatory for all rate plans with less than 100 active
members. Mandated participation in risk pools was initially based on the active membership
of each rate plan as of June 30, 2003. The implementation of risk pools was done in a way
that minimizes the impact on employer contribution rates. The first year in risk pools, the
employer contribution rates are almost identical to what the rates would have been outside
pools. Future rates will be based on the experience of each pool. Pooling will reduce the
volatility of future employer rates. Mandated participation will occur on an annual basis. If on
any valuation date, starting with the June 30, 2003, valuation, a rate plan has less than
100 active members, it will be mandated in one of the risk pools effective on that valuation
date.
61
City of La Quinta
Notes to Financial Statements (Continued)
Note 14: Self Insurance
The City is a member of the California Joint Powers Insurance Authority (Authority). The
Authority is composed of 114 California public entities and is organized under a joint powers
agreement pursuant to California Government Code §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.
Self -Insurance Programs of the Authority
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.
Claims are pooled separately between police and non -police. Costs are spread to
members as follows: the first $30,000 of each occurrence is charged directly to the
member's primary deposit; costs from $30,000 to $750,000 and the loss development
reserves associated with losses up to $750,000 are pooled based on the member's share
of losses under $30,000. Losses from $750,000 to $10,000,000 $18,000,000 to
$23,000,000, and $45,000,000 to $50,000,000 and the associated loss development
reserves are pooled based on payroll. Costs of covered claims from $10,000,000 to
$18,000,000 and $23,000,000 to $45,000,000 are currently paid by excess insurance.
Costs of covered claims for subsidence losses from $15,000,000 to $25,000,000 are paid
by excess insurance. The protection for each member is $50,000,000 per occurrence
and $50,000,000 annual aggregate. Administrative expenses are paid from the
Authority's investment earnings.
Workers Compensation
The City of La Quinta also participates in the workers' compensation pool administered
by the Authority. Each member 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. Claims are pooled separately between public safety and non-public safety. Each
member has a retention level of $50,000 for each loss and this is charged directly to the
member's primary deposit. 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 to $2,000,000 and loss development
reserves associated with those losses are pooled based on payroll. Losses from
$2,000,000 to $5,000,000 are pooled with California State Association of Counties —
Excess Insurance Authority members. Costs from $2,000,000 to $200,000,000 are
transferred to reinsurance carriers. Costs in excess of $200,000,000 are pooled among
the Members based on payroll. Protection is provided per statutory liability under
California Workers' Compensation law. Administrative expenses are paid from the
Authority's investment earnings.
In addition to coverage with the Authority, the City also carries additional coverage for
earthquake & flood and real and personal property with Pacific Insurance Co, Coverage is
$5,000,000 with a $25,000 deductible. The total insured value of real and personal property,
is $27,076,000. An excess earthquake & flood and real and personal property policy is held
with Endurance American Specialty Insurance Company. Coverage is $2,500,000 in excess
of the $5,000,000 covered by the primary policy.
62
City of La Quinta
Notes to Financial Statements (Continued)
Note 14: Self Insurance (Continued)
Employee dishonesty, forgery and computer fraud insurance is held with Hartford Insurance
Company. Coverage is $1,000,000 with a $5,000 deductible.
All risk property insurance, including auto physical damage is held with Lexington Insurance
Company. Coverage is up to $10,000,000 per occurrence with various sublimits depending
on the property. The total insured value of real and personal property is $40,878,900.
During the past three fiscal years none of the above programs of protection have had
settlements or judgments that exceed pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
Note 15: 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.
Note 16: Construction Commitments
The following material construction commitments existed at June 30, 2007:
63
Expenditures to
Contract
date as of June
Remaining
Project Name
Amount
30, 2007
Commitments
Silver Rock Resort
$ 97,817,803
$ 85,025,951
$ 12,791,852
Vista Dunes Mobile Home Park
35,201,778
23,180,407
12,021,371
Dune Palms Road and Ave 48 Housing
30,153,435
2,158,488
27,994,947
Phase 2 - Jefferson Street Improvement
22,118,525
20,912,507
1,206,018
City Hall Expansion
13,308,000
6,410,338
6,697,662
Museum Expansion
3,330,500
510,719
2,819,781
Highway 111 - Adams to Jefferson
2,714,986
342,889
2,372,097
Ave 52 Bridge Improvement
2,348,876
186,074
2,162,802
Silverrock Resort Phase II Golf Course
2,106,000
421,943
1,684,057
Adams Street Bridge Improvements
1,526,000
5,709
1,520,291
Ave 52 & Ave 54 Median Island Landscaping
1,306,142
18,969
1,287,173
Sound Attenuation Hall
1,202,704
43,724
1,158,980
63
City of La Quinta
Notes to Financial Statements (Continued)
Note 17: Unreserved Fund Balances
Unreserved fund balances at June 30, 2007, consisted of the following:
The City entered into an agreement with Landmark Golf Management LLC (operator) to
manage the golf operations at the city -owned SilverRock Gold 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, 2007, the Golf Course had an operating loss before contributions and transfers of
$977,608.
Note 19: Reimbursement Agreements
The City entered into a transient occupancy tax (TOT) revenue reimbursement agreement on
August 31, 2006, with Village Resort LLC, the owner of an Embassy Suites Hotel. The hotel
owner is required to remit on a monthly basis any TOT collected to the City, thirty days after
each month. Under terms of the agreement, the City shall make quarterly payments of 40%
of any TOT generated from the Motel in an amount not to exceed $1,000,000 over a five year
period. The agreement terminates when either the $1,000,000 limit is reached or in
5 years whichever comes first. In addition, the hotel may not assign or transfer this
agreement without the City's prior written consent, which it may withhold at its discretion.
The hotel opened in November 2006. As of June 30, 2007, the City made $118,851 in
reimbursement payments to the owner leaving an outstanding balance of $881,149.
64
Low/Moderate
Other
Income
2004 Low/ Mod
RDA PA #1
RDA PA #2
Governmental
General Fund
Housing PA #2
Bond
Debt Service
Debt Service
Funds
Total
Designated for:
Emergency reserve
$ 18,722,524
$ -
$
$ -
$ -
$ -
$ 18,722,524
Cash flows
3,470,309
-
-
-
3,470,309
Capital improvements
482,718
-
-
-
-
482,718
Educational purposes
500,000
-
-
500,000
Economic development
2,327,430
-
-
2,327,430
Encumbrances/carryover
appropriations
1,477,670
-
-
1,477,670
Operations/projects/
transfers
29,271,236
-
-
29,271,236
Undesignated
10,075,452
38,283,337
21,388,244
2,910,342
37,792,595
110,449,970
Total unreserved fund
balances (deficit)
$ 56,251,887
$ 10,075,452
$ 38,283,337
$ 21,388,24.4
$ 2,910,342
$ 37,792,595
$ 166,701,857
Note 18: Golf Course Management
Agreement
The City entered into an agreement with Landmark Golf Management LLC (operator) to
manage the golf operations at the city -owned SilverRock Gold 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, 2007, the Golf Course had an operating loss before contributions and transfers of
$977,608.
Note 19: Reimbursement Agreements
The City entered into a transient occupancy tax (TOT) revenue reimbursement agreement on
August 31, 2006, with Village Resort LLC, the owner of an Embassy Suites Hotel. The hotel
owner is required to remit on a monthly basis any TOT collected to the City, thirty days after
each month. Under terms of the agreement, the City shall make quarterly payments of 40%
of any TOT generated from the Motel in an amount not to exceed $1,000,000 over a five year
period. The agreement terminates when either the $1,000,000 limit is reached or in
5 years whichever comes first. In addition, the hotel may not assign or transfer this
agreement without the City's prior written consent, which it may withhold at its discretion.
The hotel opened in November 2006. As of June 30, 2007, the City made $118,851 in
reimbursement payments to the owner leaving an outstanding balance of $881,149.
64
City of La Quinta
Notes to Financial Statements (Continued)
Note 19: Reimbursement Agreements (Continued)
The City entered into a sales tax sharing agreement on January 30, 2006, with Costco
Wholesale Corporation. Under the terms of the agreement the City shall make quarterly
payments of 40% of the any sales tax generated from the Costco in an amount not to exceed
$4,000,000 over a ten year period. Due to the reporting of sales tax information by the State
Board of Equalization to the City, the reimbursement payments by the City will lag by one
quarter. The agreement terminates when either the $4,000,000 limit is reached or in
10 years whichever comes first. The Costco business opened in November 2006. As of
June 30, 2007, the City made $115,040 in reimbursement payments to the owner leaving an
outstanding balance of $3,884,960.
Note 20: Net Asset and Fund Balance Restatements
Beginning fund balances had been restated as follows:
Major governmental funds:
General Fund
To record sales tax revenue in prior year
Nonmajor Governmental Funds:
State Gas Tax
To record gas tax revenue in prior year
Indian Gaming
To remove prior year revenues from fund balance
and record as unearned revenue
Total Fund Balances Restatements
Beginning net assets has been restated as follows:
Governmental activities:
To record tax revenue in prior year
To remove prior year revenues from fund balance
and record as unearned revenue
To remove deferred costs from long term liabilities and
record as assets
To record deferred costs as an asset
Total Net Asset Restatements
65
$ 761,850
68,269
(130,856)
$ 699.263
$ 830,119
(130,856)
(4,939,088)
4,939,088
$ 699,263
OTHER GOVERNMENTAL FUNDS
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. Theses
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 Enforcements Block Grant (SLEBG) Fund — To account for state funded "Citizens for Public
Safety" (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police
serviced such as anti -gang community crime prevention.
Indian Gaming Fund To account for contributions for public safety activities to reduce crime and
increase public safety.
Lighting and Landsca e Special Assessment District 89-9 Fund — To account for special assessments
levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance
and improvements.
Riverside_ Count Transportation Commission (RCM Fund - To account for grant funds related to
transportation projects.
Quimby Fund — To account for the accumulation of developer fees received under the provisions of the
Quimby Act for park development and improvements. Capital projects to be funded from this source will
be budgeted and expended in a separate capital projects fund.
La Quinta Public Safety Officer Fund — To account for contributions to be distributed to public safety
officers disabled or killed in the line of duty.
Arts in Public Places — To account for development fees paid in lieu of acquisition and installation of
approved artworks in a development with expenditures restricted to acquisition, installation, maintenance
and repair of artworks at approved sites.
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. I 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.
Development Agreement -Fund — To account for the proceeds of development agreement revenues
collected and the related expenditures in accordance with State requirements.
Coachella Valley Violent Crime Ganq Task Force - To account for the revenues and expenditures of this
valley -wide crime prevention program with funding coming from the member agencies and grant revenue.
CAPITAL PROJECT FUNDS
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Redevelopment Agency, Capital 'Proiects Fund Area 1 — To account for the bond proceeds, interest and
other funding that will be used for development, planning, construction and land acquisition
Infrastructure Fund - To account for the accumulation of resources provided through developer fees for
the acquisition, construction or improvement of the City's infrastructure, prior to adoption of the new
Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources
received prior to this date, and is budgeted by the Council through adoption of the annual capital
improvement program budget.
Transportation Fund_ Parks and Recreations Fund, Civic Center Fund, Library Development Fund,
Community Center Funds 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.
Redeveionment 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.
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.
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.
67
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ $ _ $ $
Deposits payable
Deferred revenues
Unearned revenue _
Due to other funds - 18,780
Advances from other funds
Total Liabilities - 18,780
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable _
Reserved for advances to other funds _
Unreserved:
Undesignated 72,267 1,481,428 - 17,612
Total Fund Balances 72,267 1,481,428 - 17,612
Total Liabilities and Fund Balances $ 72,267 $ 1,481,428 $ 18,780 $ 17,612
M
Special Revenue Funds
State
Gas
Federal
Tax
Library
Assistance SLEBG
Assets:
Pooled cash and investments
$ -
$ 967,878
$ $ 17,533
Receivables:
Accounts
Notes
Accrued interest
-
5,308
79
Prepaid costs
_
Deposits
_
Due from other governments
72,267
508,242
18,780 _
Advances to other funds
_
Restricted assets:
Cash and investments with fiscal agents
_
_
_
Total Assets
$ 72,267
$ 1,481,428
$ 18,780 $ 17,612
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ $ _ $ $
Deposits payable
Deferred revenues
Unearned revenue _
Due to other funds - 18,780
Advances from other funds
Total Liabilities - 18,780
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable _
Reserved for advances to other funds _
Unreserved:
Undesignated 72,267 1,481,428 - 17,612
Total Fund Balances 72,267 1,481,428 - 17,612
Total Liabilities and Fund Balances $ 72,267 $ 1,481,428 $ 18,780 $ 17,612
M
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007 (Continued)
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ - $
Deposits payable - - - 4,300
Deferred revenues - _ _ _
Unearned revenue 302,223 - -
Due to other funds _
Advances from other funds
Total Liabilities 302,223 - - 4,300
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable _
Reserved for advances to other funds - - _ _
Unreserved:
Undesignated 32,611 - 9,666,026
Total Fund Balances - 32,611 - 9,666,026
Total Liabilities and Fund Balances $ 302,223 $ 32,611 $ - $ 9,670,326
69
Special Revenue Funds
Lighting
Indian
and
Gaming
Landscape RCTC
Quimby
Assets:
Pooled cash and investments
$ 301,034
$ - $ -
$ 9,629,035
Receivables:
Accounts
-
- -
-
Notes
-
_
_
Accrued interest
1,189
-
41,291
Prepaid costs
-
- -
-
Deposits
-
_
Due from other governments
-
32,611 -
-
Advances to other funds
-
- -
Restricted assets:
Cash and investments with fiscal agents
-
-
-
Total Assets
$ 302,223
$ 32,611 $ -
$ 9,670,326
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ - $
Deposits payable - - - 4,300
Deferred revenues - _ _ _
Unearned revenue 302,223 - -
Due to other funds _
Advances from other funds
Total Liabilities 302,223 - - 4,300
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable _
Reserved for advances to other funds - - _ _
Unreserved:
Undesignated 32,611 - 9,666,026
Total Fund Balances - 32,611 - 9,666,026
Total Liabilities and Fund Balances $ 302,223 $ 32,611 $ - $ 9,670,326
69
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue Funds
Arts in
Public Public South Coast
Safety Places Air Quality AB 939
$ 15,626 $ 1,062,402 $ 216,232 $ 1,374,936
67 4,519 911 5,996
31,965
$ 15,693 $ 1,066,921 $ 217,143 $ 1,412,897
5,208 $ _
5,208
15,693
1,066,921
211,935
1,412, 897
15,693
1,066,921
211,935
1,412,897
$ 15,693
$ 1,066,921 $
217,143
_L1,412,897
70
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007 (Continued)
Capital Projects
Special Revenue Funds Funds
Low/Moderate CV Violent Redevelopment
Income Housing Development Crime Agency
PA No. 1 Agreement Task Force PA No. 1
Assets:
Pooled cash and investments $ 3,311,795 $ 186,173 $ 109,942 $ 71,795
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
9,939
3,566,117 - - -
25,937 834 490 -
2,484 - - 2,485
206,050 - - -
82,488 - 16,841 -
- - - 3,878,873
- - - 17,022,623
$ 7,204,810 $ 187,007 $ 127,273 $ 20,975,776
$ 26,609 $ - $ 6,760 $ 35,408
12,403 187,007 - -
1,484,472 -
1,523,484 187,007 6,760 35,408
2,484 - 2,485
2,081,645 - -
- - 3,878,873
3,597,197 - 120,513 17,059,010
5,681,326 120,513 20,940,368
$ 7,204,810 $ 187,007 $ 127,273 $ 20,975,776
71
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Capital Projects Funds
Parks and Civic
Infrastructure Transportation Recreation Center
$ 511,217 $ 7,143,127
2,476 30,410
$ 513,693 $ 7,173,537 $ $
- 1,853,442 3,031,324
1,853,442 3,031,324
513,693 7,173,537 (1,853,442) (3,031,324)
513,693 7,173,537. (1,853,442} (3,031,324)
$ 513,693 $ 7,173,537 $ $
72
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007 (Continued)
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Capital Projects Funds
Library Community Street Park
Development Center Facility Facility
$ - $ 1,050,874 $ 311,092 $ 83,087
4,509 1,397 356
$ - $ 1,055,383 $ 312,489 $ 83,443
2,025,431
2,025,431
(2,025,431) 1,055,383 312,489 83,443
(2,025,431) 1,055,383 312,489 83,443
$ - $ 1,055,383 $ 312,489 $ 83,443
73
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Debt Service
Capital Projects Fund
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Accrued interest
Prepaid costs
Deposits
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Deposits payable
Deferred revenues
Unearned revenue
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
Reserved for notes receivable
Reserved for advances to other funds
Unreserved:
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
s Funds
Redevelopment Financing
Fire Agency Authority Financing
Facility PA No. 2 Projects Authority
$ - $ 1,716,384 $ - $ 10,328
50,900
7,306 _
1,504
- 944,670 _
- 306
$ $ 2,730,764 $ - $ 10,634
$ - $ 12,581 $
27,835 _
944,671
944,671 40,416
1,504
944,670 -
(944,671) 1,744,174 - 10,634
(944,671) 2,690,348 - 10,634
$ - $ 2,730,764 $ - $ 10,634
74
CITY OF LA QUINTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2007
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Total
Deposits payable
Governmental
Deferred revenues
Funds
Assets:
302,223
Pooled cash and investments
$ 28,090,490
Receivables:
7,854,868
Accounts
70,839
Notes
3,566,117
Accrued interest
133,075
Prepaid costs
6,473
Deposits
206,050
Due from other governments
763,194
Advances to other funds
4,823,543
Restricted assets:
Cash and investments with fiscal agents
17,022,929
Total Assets
$ 54,682,710
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 86,566
Deposits payable
231,545
Deferred revenues
1,484,472
Unearned revenue
302,223
Due to otherfunds
18,780
Advances from other funds
7,854,868
Total Liabilities
9,978,454
Fund Balances:
Fund balances:
Reserved:
Reserved for prepaid costs
6,473
Reserved for notes receivable
2,081,645
Reserved for advances to other funds
4,823,543
Unreserved:
Undesignated
37,792,595
Total Fund Balances
44,704,256
Total Liabilities and Fund Balances
$ 54,682,710
75
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Expenditures:
Special Revenue Funds
Current:
State
General government
_
Gas
Federal
_
_
Tax
Library
Assistance
SLEBG
Revenues:
Community services
-
1,002,054
-
Taxes
804,238
-
_
Capital outlay
Assessments
Debt service:
Intergovernmental
951,316
1,823,751
30,000
100,000
Contribution from property owners
-
_
_
_
Charges for services
_
_
- _
_
Use of money and property
9,791
48,880
Over (Under) Expenditures
552
Miscellaneous
-
_
Developer participation
_
_
_
Loan repayments
_
_
-
Proceeds from sale of capital assets
Total Revenues
961,107
1,872,631
30,000
100,552
Expenditures:
Current:
General government
_
_
Public safety
_
_
Planning and development
-
_
Community services
-
1,002,054
-
Public works
804,238
-
_
Capital outlay
-
Debt service:
Principal retirement
Interest and fiscal charges
_
Total Expenditures
804,238
1,002,054
- _
Excess (Deficiency) of Revenues
Over (Under) Expenditures
156,869
870,577
30,000 100,552
Other Financing Sources (Uses):
Transfers in
_
_
Transfers out
(583,348)
(510,719)
(30,000) (82,940)
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
(583,348)
(510,719)
(30,000) (82,940)
Net Change in Fund Balances
(426,479)
359,858
- 17,612
Fund Balances, Beginning of Year
430,477
1,121,570
- _
Restatements
68,269
Fund Balances, Beginning of Year, as Restated
498,746
1,121,570
- _
Fund Balances, End of Year
$ 72,267
$1,481,428 $
- $ 17,612
W.
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007 (Continued)
77
Special Revenue Funds
Lighting
Indian
and
Gaming
Landscape
RCTC
Quimby
Revenues:
Taxes
$ -
$ -
$
$
Assessments
-
877,191
-
-
Intergovernmental
183,133
-
46,832
-
Contribution from property owners
-
-
-
Charges for services
-
-
-
Use of money and property
12,613
-
-
419,462
Miscellaneous
-
-
-
-
Developer participation
-
-
-
1,790,492
Loan repayments
-
-
-
-
Total Revenues
195,746
877,191
46,832
2,209,954
Expenditures:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Planning and development
-
-
-
-
Community services
a
-
-
-
Public works
-
876,274
-
-
Capital outlay
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
Total Expenditures
876,274
-
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
195,746
917
46,832
2,209,954
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
(195,746)
-
(46,832)
(93,502)
Proceeds from sale of capital assets
-
-
-
-
Total Other Financing Sources
(Uses)
(195,746)
-
(46,832)
(93,502
Net Change in Fund Balances
-
917
-
2,116,452
Fund Balances, Beginning of Year
130,856
31,694
-
7,549,574
Restatements
(130,856)
-
-
Fund Balances, Beginning of Year, as Restated
-
31,694
7,549,574
Fund Balances, End of Year
$ -
$ 32,611
$
$ 9,666,026
77
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Expenditures:
Special Revenue Funds
Current:
Arts in
Public
Public
South Coast
Safety
Places
Air Quality
AB 939
Revenues:
Planning and development
-
-
20,380
Taxes
$ _
$
$
$
Assessments
Public works
Intergovernmental
Capital outlay
-
45,288
Contribution from property owners
Debt service:
_
_
Charges for services
Principal retirement
-
-
267,483
Use of money and property
703
47,310
9,058
59,683
Miscellaneous
Total Expenditures
-
140,059
20,380
Developer participation
Excess (Deficiency) of Revenues
133,929
_
Loan repayments
_
_
41,180
33,966
Total Revenues
703
181,239
54,346
327,166
Expenditures:
Current:
General government
_
Public safety
-
Planning and development
-
-
20,380
93,446
Community services
-
30,662
-
Public works
Capital outlay
-
109,397
Debt service:
Principal retirement
_
_
Interest and fiscal charges
_
-
_
Total Expenditures
-
140,059
20,380
93,446
Excess (Deficiency) of Revenues
Over(Under)Expenditures
703
41,180
33,966
233,720
Other Financing Sources (Uses):
Transfers in
2,000
_
_
_
Transfers out
-
(8,754)
Proceeds from sale of capital assets
Total Other Financing Sources
(Uses)
2,000
-
-
(8,754)
Net Change in Fund Balances
2,703
41,180
33,966
224,966
Fund Balances, Beginning of Year
12,990
1,025,741
177,969
1,187,931
Restatements
_
Fund Balances, Beginning of Year, as Restated
12,990
1,025,741
177,969
1,187,931
Fund Balances, End of Year
$ 15,693
$ 1,066,921
$ 211,935
$ 1,412,897
78
CITY OF LA DUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007 (Continued)
Capital Projects
Special Revenue Funds Funds
Low/Moderate CV Violent Redevelopment
Income Housing Development Crime Agency
PA No. 1 Agreement Task Force PA No. 1
Revenues:
Taxes $ 10,507,377 $ - $ - $ -
Assessments
Intergovernmental
Contribution from property owners
Charges for services
Use of money and property
Miscellaneous
Developer participation
Loan repayments
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
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, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
234,328 -
505,876 -
987,611
12,235,192 -
167,501
3,744 1,137, 305
- 59,994
22,847
171,245 1,220,146
- - 50,732
1,131,558 - - 1,027,937
1,131,558 - 50,732 1,027,937
11,103,634 - 120,513 192,209
100,000 - - -
(20,448,138) - - (4,336,775)
124,097 -
(20,224,041) - - (4,336,775)
(9,120,407) - 120,513 (4,144,566)
14,801,733 - - 25,084,934
14,801,733 - - 25,084,934
$ 5,681,326 $ - $ 120,513 $ 20,940,368
79
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Capital Projects Funds
Expenditures:
Parks and
Civic
Infrastructure Transportation
Recreation
Center
Revenues:
General government
Taxes
$ $
$
$
Assessments
203,660
Intergovernmental
_
Contribution from property owners
_
-
4
Charges for services
-
Public works
52,100
Use of money and property
25,294 319,372
-
54,710
Miscellaneous
Developer participation
- 1,682,436
515,128
467,192
Loan repayments
_
Total Revenues
25,294 2,001,808
515,128
521,902
Expenditures:
Current:
General government
Public safety
_
203,660
Planning and development
-
Community services
-
Public works
52,100
3,036
Capital outlay
-
Debt service:
Principal retirement
Interest and fiscal charges
-
-
108,418
_
Total Expenditures
52,100
-
108,418
206,696
Excess, (Deficiency) of Revenues
Over (Under) Expenditures
(26,806)
2,001,808
406,710
315,206
Other Financing Sources (Uses):
Transfers in
Transfers out
Proceeds from sale of capital assets
(87,674)
(1,597,755)
-
(5,657,436)
Total Other Financing Sources
(Uses)
(87,674)
(1,597,755)
-
(5,657,436)
Net Change in Fund Balances
(114,480)
404,053
406,710
(5,342,230)
Fund Balances, Beginning of Year
628,173
6,769,484
(2,260,152)
2,310,906
Restatements
Fund Balances, Beginning of Year, as Restated
628,173
6,769,484
(2,260,152)
2,310,906
Fund Balances, End of Year
$ 513,693
$ 7,173,537
$ (1,853,442)
$ (3,031,324)
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007 (Continued)
Loan repayments
Total Revenues
Capital Projects Funds
88,776
76,249
16,210
Library Community Street
Park
$ 1,055,383
Development Center Facility
Facility
Revenues:
Taxes
$ - $ - $
$
Assessments
- -
-
Intergovernmental
- -
-
Contribution from property owners
- -
Charges for services
- - -
-
Use of money and property
- 46,446 14,451
3,494
Miscellaneous
- - -
-
Developer participation
204,791 42,330 61,798
12,716
Loan repayments
Total Revenues
204,791
88,776
76,249
16,210
Expenditures:
$ (2,025,431)
$ 1,055,383
$ 312,489 $
83,443
Cu rre nt:
General government
-
-
-
-
Public safety
-
-
Planning and development
-
-
-
-
Community services
-
-
-
-
Public works
-
-
Capital outlay
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
105,823
-
-
-
Total Expenditures
105,823
-
-
-
Excess (Deficiency) of Revenues
Over (Under) Expenditures
98,968
88,776
76,249
16,210
Other Financing Sources (Uses):
Transfers in
-
-
-
-
Transfers out
-
-
(47,097)
-
Proceeds from sale of capital assets
-
-
-
-
Total Other Financing Sources
(Uses)
-
-
(47,097)
-
Net Change in Fund Balances
98,968
88,776
29,152
16,210
Fund Balances, Beginning of Year
(2,124,399)
966,607
283,337
67,233
Restatements
Fund Balances, Beginning of Year, as Restated
(2,124,399)
966,607
283,337
67,233
Fund Balances, End of Year
$ (2,025,431)
$ 1,055,383
$ 312,489 $
83,443
81
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
Debt
Service
Capital Projects Funds Funds
Redevelopment Financing
Fire Agency Authority Financing
Revenues:
Facility PA No. 2 Projects Authority
_
Taxes
$
$
$
$
Assessments
'
Intergovernmental
Contribution from property owners
Charges for services
-
-
678,865
Use of money and property
-
-
125,421
10,121
Miscellaneous
_
17
Developer participation
84,366
Loan repayments
Total Revenues
84,366
125,421
689,003
Expenditures:
Current:
General government
Public safety
_
-
10,121
Planning and development
117,396
Community services
'
Public works
Capital outlay
-
-
Debt service:
-
Principal retirement
Interest and fiscal charges
-
49,067
-
1,865,000
-
-
4,737,021
Total Expenditures
49,067
117,396
-
6,612,142
Excess (Deficiency) of Revenues
Over (Under) Expenditures
35,299
8,025
(5,9231139)
Other Financing Sources (Uses):
Transfers in
Transfers out
5,930,182
Proceeds from sale of capital assets
-
_
(66,107)
(7,273)
-
Total Other Financing Sources
(Uses)
-
(66,107)
7,273
5,930,182
Net Change in Fund Balances
35,299
(58,082)
(7,273)
7,043
Fund Balances, Beginning of Year
(979,970)
2,748,430
7,273
3,591
Restatements
Fund Balances, Beginning of Year, as Restated
(979,970)
2,748,430
7,273
3,591
Fund Balances, End of Year
$ (944,671)
$ 2,690,348
$ _
$ 10,634
82
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007
83
Total
Governmental
Funds
Revenues:
Taxes
$ 10,507,377
Assessments
877,191
Intergovernmental
3,347,821
Contribution from property owners
913,193
Charges for services
277,604
Use of money and property
2,844,182
Miscellaneous
59,994
Developer participation
5,018,025
Loan repayments
987,611
Total Revenues
24,832,998
Expenditures:
Current:
General government
213,781
Public safety
50,732
Planning and development
2,390,717
Community services
1,032,716
Public works
1,735,648
Capital outlay
109,397
Debt service:
Principal retirement
1,865,000
Interest and fiscal charges
5,000,329
Total Expenditures
12,398,320
Excess (Deficiency) of Revenues
Over (Under) Expenditures
12,434,678
Other Financing Sources (Uses):
Transfers in
6,032,182
Transfers out
(33,800,096)
Proceeds from sale of capital assets
124,097
Total Other Financing Sources
(Uses)
27,643,817)
Net Change in Fund Balances
(15,209,139)
Fund Balances, Beginning of Year
59,975,982
Restatements
(62,587)
Fund Balances, Beginning of Year, as Restated
59,913,395
Fund Balances, End of Year
$ 44,704,256
83
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2007
Variance with
84
Final Budget
Budget Amounts
Actual
Positive
_ _Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1, as restated
$ 498,746
$ 498,746
$ 498,746
-
Resources (Inflows):
Intergovernmental
847,681
921,481
951,316
29,835
Use of money and property
7,900
18,000
9,791
(8,209)
Amounts Available for Appropriation
1,354,327
1,_438,227
1,459,853
21,626
Charges to Appropriation (Outflow):
Public works
855,581
855,581
804,238
51,343
Transfers to other funds
-
584,837
583,348
1,489
Total Charges to Appropriations
855,581
1,440,418
1,387,586
52,832
Budgetary Fund Balance, June 30
$ 498,746
$ (2,191)
$ 72,267
$ 74,458
84
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Transfers to other funds
Total Charges to Appropriations
Variance with
Budgetary Fund Balance, June 30 $ 2,364,112 $ (967,387) $ 1,481,428 $ 2,448,815
85
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 1,121,570
$ 1,121,570
$ 1,121,570
_
$
2,071,017
2,071,017
1,823,751
(247,266)
40,800
40,800
48,880
8,080
3,233,387
3,233,387
2,994,201
(239,186)
869,275
869,275
1,002,054
(132,779)
-
3,331,499
510,719
2,820,780
869,275
4,200,774
1,512,773
2,688,001
Budgetary Fund Balance, June 30 $ 2,364,112 $ (967,387) $ 1,481,428 $ 2,448,815
85
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULES
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts Negative
202,600 454.745 30,000 (424,745
202,600 454,745 30,000 (424,745)
202,588 525,921 30,000 495,921
202,588 525,921 30,000 495,921
$ 12 $ (71,176) $ - $ 71,176
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SLEBG
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
100,000 100,000 100,000
2,700 2,700 552 (2,148)
102,700 102,700 100,552 (2,148)
101,400 101,400 82,940 18,460
101,400 101,400 82,940 18,460
Budgetary Fund Balance, June 30 $ 1,300 $ 1,300 $ 17,612 $ 16,312
87
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INDIAN GAMING
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1, as restated
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
L -N
Final Budget
Budget Amounts
Actual
Positive
Oqjincl
Final
(Negative)
$
$
$Amounts
s
177,250
177,250
183,133
5,883
8,500
11,300
12,613
1,313
185,750
188,550
195,746
7,196
201,142
201,142
195,746
5,396
201,142
201,142
195,746
5,396
$ (15,392)
$ (12,592)
$ -
$ 12,592
L -N
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPE
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (inflows):
Assessments
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 31,694 $ 31,694 $ 31,694 $ -
890,900 890,900 877,191 (13,709)
922,594 922,594 908,885 (13,709)
890,900 922,594 876,274 46,320
890,900 922,594 876,274 46,320
Budgetary Fund Balance, June 30 $ 31,694 $ - $ 32,611 $ 32,611
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
RCTC
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (NegativeL-
2,374,007 46,832 (2,327,175)
- 2,374,007 46,832 2,327,175
1,929,072 46,832 1,882,240
1,929,072 46,832 1,882,240
$ - $ 444,935 $ - $ (444,935
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to appropriation (outflow):
Community services
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
$ 9,489,474 $ 9,350,124 $ 9,666,026 $ 315,902
91
Final Budget
Budget Amounts
Actual
Positive
Original _
Final
Amounts
(Negative)
$ 7,549,574
$ 7,549,574
$ 7,549,574
$ -
-
4,300
-
(4,300)
272,900
272,900
419,462
146,562
1,667,000
1,672,000
1,790,492
118,492
9,489,474
9,498,774
9,759,528
260,754
-
32,000
-
32,000
-
116,650
93,502
23,148
148,650
93,502
55,148
$ 9,489,474 $ 9,350,124 $ 9,666,026 $ 315,902
91
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 12,990 $ 12,990 $ 12,990 $ -
300 600 703 103
2,000 2,000 2,000 -
15,290 15,590 15,693 103
2,000 2,000 - 2,000
2,000 2,000 - 2,000
$ 13,290 $ 13,590 $ 15,693 $ 2,103
CITY OF LA QUINTA
BUDGET COMPARISON SCHEDULE
ARTS IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts available for appropriation
Charges to Appropriation (Outflow):
Community services
Capital outlay
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Ori inal Final
$1,025,741 $ 1,025,741
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 1,025,741 $ -
40,600
40,600
47,310
6,710
97,500
97,500
133,929
36,429
1,163,841
1,163,841
1,206,980
43,139
31,800
36,800
30,662
6,138
255,250
420,150
109,397
310,753
200,000
200,000
-
200,000
487,050
656,950
140,059
516,891
$ 676,791 $ 506,891 $ 1,066,921 $ 560,030
tiki
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2007
Variance with
94
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
177,969
$ 177,969
$ 177,969
$ _.
Resources (Inflows):
Intergovernmental
45,000
45,000
45,288
288
Use of money and property
7,400
7,400
9,058
1,658
Amounts Available for Appropriation
230,369
230,369
232,315
1,946
Charges to Appropriation (Outflow):
Planning and development
26,600
26,600
20,380
6,220
Total Charges to Appropriations
26,600
26,600
20,380
6,220
Budgetary Fund Balance, June 30
$ 203,769
$ 203,769
$ 211,935
$ 8,166
94
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Charges for services
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers to other funds
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$1,187,931 $ 1,187,931 $ 1,187,931 $ -
- 450,000 267,483 (182,517)
- 50,000 59,683 9,683
1,187,931 1,687,931 1,515,097 (172,834)
79,430 93,446 (14,016)
8,754 8,754 -
88,184 102,200 _ (14,016)
Budgetary Fund Balance, June 30 $1,187,931 $ 1,599,747 $ 1,412,897 $ (186,850)
95
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LOW/MODERATE INCOME HOUSING PA NO. 1
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Contributions from property owners
Use of money and property
Proceeds from sale of capital assets
Loan repayments
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Planning and development
Transfers to other funds
Total Charges to Appropriations
Variance with
24,452,133 27,680,233 27,261,022 (419,211)
8,957,908
10,757,908
1,131,558
Final Budget
Budget Amounts
Actual
Positive
Ori final
Final
Amounts
_(Negative)
$14,801,733
$ 14,801,733
$ 14,801,733
$ -
8,915,100
10,349,200
10,507,377
158,177
252,000
252,000
234,328
(17,672)
333,300
442,300
505,876
63,576
150,000
645,000
124,097
(520,903)
1,050,000
987,611
(62,389)
140,000
100,000
(40,000
24,452,133 27,680,233 27,261,022 (419,211)
8,957,908
10,757,908
1,131,558
4,448,304
20,448,304
20,448,138
13,406,212
31,206,212
21,579,696
9,626,350
166
9,626,516
Budgetary Fund Balance, June 30 $11,045,921 $ (3,525,979) $ 5,681,326 $ 9,207,305
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CV VIOLENT CRIME TASK FORCE
YEAR ENDED JUNE 30, 2007
Variance with
97
Final Budget
Budget Amounts
Actual
Positive
Ori iina`I
Final
Amounts
(Negative)
Budgetary fund balance, July 1
$ -
$ -
$ -
$ _ a
Resources (inflows):
Intergovernmental
163,960
176,210
167,501
(8,709)
Use of money and property
1,600
1,600
3,744
2,144
Amounts available for appropriation
165,560
177,810
171,245
(6,565)
Charges to appropriation (outflow):
Public safety
102,700
102,700
50,732
51,968
Total Charges to Appropriations
102,700
102,700
50,732
51,968
Budgetary fund balance, June 30
$ 62,860
$ 75,110
$ 120,513
$ 45,403
97
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Developer fees
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
9,331,249 115,297,180 36,311,020 78,986,160
182,491 182,491 182,491
65,963 65,963 65,963
9,579,703 115,545,634 36,559,474 78,986,160
$ - $ 44,699 $ - $ (44,699)
W.
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
{Negative)
1,541,800
7,673,671
4,056,049
(3,617,622)
-
563,997
292,415
(271,582)
8,037,903
107,352,665
32,211,010
(75,141,655)
9,579,703
115,590,333
36,559,474
(79,030,859)
9,331,249 115,297,180 36,311,020 78,986,160
182,491 182,491 182,491
65,963 65,963 65,963
9,579,703 115,545,634 36,559,474 78,986,160
$ - $ 44,699 $ - $ (44,699)
W.
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO. 1
YEAR ENDED JUNE 30, 2007
99
Variance with
Final Budget
Budget Amounts
Actual
Positive
_ Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 25,084,934
$ 25,084,934$
$ 25,084,934
_
Resources (Inflows):
Use of money and property
512,500
1,199,500
1,137,305
(62,195)
Other
-
-
59,994
59,994
Developer fees
-
-
22,847
22,847
Transfers from other funds
2,500,000
-
_
Amounts Available for Appropriation
28,097,434
26,284,434
26,305,080
20,646
Charges to Appropriation (Outflow):
Planning and development
759,626
947,646
1,027,937
(80,291)
Transfers to other funds
4,152,554
20,556,057
4,336,775
16,219,282
Total Charges to Appropriations
4,912,180
21,503,703
5,364,712
16,138,991
Budgetary Fund Balance, June 30
$ 23,185,254
$ 4,780,731
$ 20,940,368
$ 16,159,637
99
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
2004 LOW/MOD BOND
YEAR ENDED JUNE 30, 2007
Variance with
Final Budget
_ Budget Amounts
Actual
Positive
Budgetary Fund Balance, July 1
_ Original
$56,846,921
Final
$ 56,846,921
Amounts
$ 56,846,921
(!Negative)
$ -
Resources (Inflows):
Use of money and property
2,000,000
2,800,000
2,706,511
93,489
Amounts Available for Appropriation
58,846,921
59,646,921
59,553,432
93,489
Charges to Appropriation (Outflow):
Planning and development
3,500,000
6,283,000
4,705,800
1,577,200
Transfers to other funds
-
53,091,795
16,564,295
36,527,500
Total Charges to Appropriations
3,500,000
59,374,795
21,270,095
38,104,700
Budgetary Fund Balance, June 30
$55,346,921
$ 272,126
$ 38,283,337
$ 38,011,211
100
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
INFRASTRUCTURE
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Transfers to other funds
Total Charges to Appropriations
Variance with
Budgetary Fund Balance, June 30 $ 635,673 $ (1,391) $ 513,693 $ 515,084
101
Final Budget
Budget Amounts
Actual
Positive
f=}riginal
Final
Amounts
(Negative)
$ 628,173
$ 628,173
$ 628,173
$ -
7,500
20,800
25,294
4,494
635,673
648,973
653,467
4,494
-
52,100
52,100
-
-
598,264
87,674
510,590
-
650,364
139,774
510,590
Budgetary Fund Balance, June 30 $ 635,673 $ (1,391) $ 513,693 $ 515,084
101
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2007
Variance with
102
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 6,769,484
$ 6,769,484
$ 6,769,484
$ -
Resources (Inflows):
Use of money and property
294,400
294,400
319,372
24,972
Developer fees
1,096,200
1,096,200
1,682,436
586,236
Amounts Available for Appropriation
8,160,084
8,160,084
8,771,292
611,208
Charges to Appropriation (Outflow):
Transfers to other funds
2,914,307
6,655,496
1,597,755
5,057,741
Total Charges to Appropriations
2,914,307
6,655,496
1,597,755
5,057,741
Budgetary Fund Balance, June 30
$ 5,245,777
$ 1,504,588
$ 7,173,537
$ 5,668,949
102
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Transfers to other funds
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$(2,260,152) $ (2,260,152) $(2,260,152) $ -
446,000 446,000 515,128 69,128
(1,814,152 (1,814,152) (1,745,024) 69,128
120,000 108,418 11,582
125,226 - 125,226
245,226 108,418 136,808
Budgetary Fund Balance, June 30 $ (1,814,152) $ (2,059,378) $(1,853,442) $ 205,936
103
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Public works
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
$2,363,246 $_j9,449,852) $(3,031,324) $ 6,418,528
104
Final Budget
Budget Amounts
Actual
Positive
_Original
Final
Amounts
(Negative)
$2,310,906
$ 2,310,906
$ 2,310,906
$ -
-
85,000
54,710
(30,290)
256,000
256,000
467,192
211,192
2,566,906
2,651,906
2,832,808
180,902
203,660
203,660
203,660
-
-
-
3,036
(3,036)
11,898,098
5,657,436
6,240,662
203,660
12,101,758
5,864,132
6,237,626
$2,363,246 $_j9,449,852) $(3,031,324) $ 6,418,528
104
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30, 2007
105
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (2,124,399)
$ (2,124,399)
$(2,124,399)
$ -
Resources (Inflows):
Developer fees
177,500
177,500
204,791
27,291
Amounts Available for Appropriation
(1,946,89
_ (1,946,899)
(1,919,608)
27,291
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
-
120,000
105,823
14,177
Total Charges to Appropriations
-
120,000
105,823
14,177
Budgetary Fund Balance, June 30
$(1,946,899)
$ (2,066,899)
$(2,025,431)
$ 41,468
105
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Variance with
106
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
966,607
$ 966,607
$ 9661,607
$ -
38,300
38,300
46,446
8,146
37,000
37,000
42,330
5,330
1,041,907
1,041,907
1,055,383
13,476
$1,041,907
$ 1,041,907
$ 1,055,383
$ 13,476
106
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
107
Final Budget
Budget Amounts
Actual
Positive
_
Original
Final
Amounts
_ (Negative}
$ 283,337
$ 283,337
$ 283,337
$ -
10,200
10,200
14,451
4,251
44,100
44,100
61,798
17,698
337,637
337,637
359,586
21,949
75,000
87,923
47,097
40,826
75,000
87,923
47,097
40,826
$ 262,637
$ 249,714
$ 312,489
$ 62,775
107
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Developer fees
Amounts Available for Appropriation
Budgetary Fund Balance, June 30
Variance with
108
Final Budget
Amounts
Actual
Positive
_Budget
Original�
Final
Amounts
(Negative)
$ 67,233
$ 67,233
$ 67,233
$ -
2,600
2,600
3,494
894
11,000
11,000
12,716
1,716
80,833
80,833
83,443
2,610
$ 80,833
$ 80,833
$ 83,443
$ 2,610
108
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Developer fees
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ (979,970) $ (979,970) $ (979,970) $ -
74,500 74,500 84,366 9,866
(905,470) (905,470) (895,604) 9,866
- 50,000 49,067 933
50,000 49,067 933
$ (905,470) $ (955,470) $ (944,671) $ 10,799
109
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.2
YEAR ENDED JUNE 30, 2007
Variance with
110
Final Budget
Budget Amounts
Actual
Positive
Budgetary Fund Balance, July 1
Original
$ 2,748,430
Final
Amounts
$ 2,748,430
(Negative)
$ 2,748,430
$ -
Resources (Inflows):
Use of money and property
105,600
105,600
125,421
19,821
Amounts Available for Appropriation
2,854,030
2,854,030
2,873,851
19,821
Charges to Appropriation (Outflow):
Planning and development
172,477
172,477
117,396
55,081
Transfers to other funds
-
193,235
66,107
127,128
Total Charges to Appropriations
172,477
365,712
183,503
182,209
Budgetary Fund Balance, June 30
$2,681,553
$ 2,488,318
$ 2,690,348
$ 202,030
110
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY PROJECTS
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 7,273 $ 7,273 $ 7,273 $
- 7,273 7,273
7,273 7,273
Budgetary Fund Balance, June 30 $ 7,273 $
111
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.1
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (inflows):
Taxes
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal
Interest and fiscal charges
Pass through agreement payments
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$ 9,549,904
$ 9,549,904
35,430,900
41,396,800
93,100
553,100
4,448,304
4,448,304
49,522,208
55,948,108
457,300
657,300
3,402,855
8,678,900
16,345,791
6,468,515
35,353,361
$14,168,847
112
Actual
Amounts
$ 9,549,904
42,029,504
1,054,152
4,448,138
57,081,698
506,056
3,402,855
3,395,449
8,678,900
8,678,900
19,187,315
19,044,700
4,108,515
4,068,349
36,034,885
35,693,454
$19,913,223 $ 21,388,244
Variance with
Final Budget
Positive
(Negatived
$
632,704
501,052
(166)
1,133,590
151,244
7,406
142,615
40,166
341,431
$ 1,475,021
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
REDEVELOPMENT AGENCY PA NO.2
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal
Interest and fiscal charges
Pass through agreement payments
Transfers to other funds
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
113
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 734,999
$ 734,999
$ 734,999
$ -
19,658,600
21,607,200
20,777,158
(830,042)
273,900
399,900
556,329
156,429
1,954,642
1,954,642
1,954,560
(82)
22,622,141
24,696,741
24,023,046
673;695
176,100
176,100
184,484
(8,384)
105,000
205,000
205,000
-
1,314,785
1,314,785
1,314,785
-
16,519,465
18,146,995
17,453,875
693,120
1,954,642
1,954,642
1,954,560
82
20,069,992
21,797,522
21,112,704
684,818
$ 2,552,149
$ 2,899,219
$ 2,910,342
$ 11,123
113
CITY OF LA QUINTA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2007
Budgetary Fund Balance, July 1
Resources (Inflows):
Contributions from property owners
Charges for services
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Debt service:
Principal
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original_ Final Amounts Ne ativel
$ 3,591 $ 3,591 $ 3,591 $
678,865 678,865 678,865
15,000 15,000 10,121 (4,879)
100 17 (83)
5,923,157 5,930,430 5,930.182 (248)
6,620,613 6,627,986 6,622,776 A5,2110)
15,125
15,125
10,121 5,004
1,865,000
1,865,000
1,865,000 _
4,737,021
4,737,021
4,737,021 _
6,6� 17,146
6,617,146
6,612,142 5,004
$ 3,467 $ 10,840 $ 10,634 $ (206)
114
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to
departments within the City. Costs of materials and services used are accumulated in this fund
and charged to the user departments as such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund — used to account for the ultimate replacement of City owned
and operated vehicles and equipment
Information Technology Fund — used to account for the purchase and replacement of
information systems.
Park Equipment and Facilities Fund — used to account for the purchase and replacement of City
owned park facility infrastructure.
115
CITY OF LA QUINTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2007
Assets:
Current:
Cash and investments
Receivables:
Interest
Due from other governments
Park
Equipment Information Equipment
Replacement Technology and Facility Total
$ 3,269,503 $ 833,301 $ 872,490 $ 4,975,294
14,054
3,781 3,823 21,658
330 - 330
Total Current Assets
3,283,557
837,412
876,313
4,99.7,282_
Noncurrent:
_
1,727
13,888
Capital assets - net of accumulated depreciation
915,127
479,206
15,095,981
16,490,314
Total Noncurrent Assets
915,127
479,206
15,095,981-
16,490,314
Total Assets $
4,198,684
$ 1,316,618
$ 15,972,294
$ 21,487,596
Liabilities and Fund Equity:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Total Current Liabilities
Long -Term:
Compensated absences
Total Long -Term Liabilities:
Total Liabilities
Net Assets:
Invested in capital assets, net
of related debts
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
$ 13,888
$ 12,840
$ -
$ 26,728
-
1,727
_
1,727
13,888
14,567
-
28,455
-
4,168
-
4,168
-
4,168
-
4,168
13,888
18,735
32,623
915,127
479,206
15,095,981
16,490,314
3,269,669
818,677
876,313
4,964,659
4,184,796
1,297,883
15,972,294
21,454,973_
$ 4,198,684
$ 1,316,618
$ 15,972,294
$ 21,487,596
116
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2007
Park
Equipment Information Equipment
Replacement Technology and Facility Totals
Operating Revenues:
Sales and service charges
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Fuel and oil
Maintenance and parts
Contract services
Software and supplies
Depreciation
Other
Total Operating Expenses
Operating Income (Loss)
Non -Operating Revenues (Expenses):
Interest revenue
Gain on disposition of assets
Total Non -Operating Revenues
$ 487,000 $ 373,500 $ 350,722 $ 1,211,222
487,000 373,500
350,722 1,211,222
-
87,166
-
87,166
71,491
-
-
71,491
109,665
-
-
109,665
10,374
97,180
-
107,554
-
125,056
-
125,056
210,287
83,750
401,031
695,068
470
19,122
12,130
31,722
609,733
402,287
412,274
413,161
1,227,722
$ 15,972,294
84,713
(38,774)
(62,439)
(16,500)
151,472
46,047
40,645
238,164
1,327
-
-
1,327
152,799
46,047
40,645
239,491
Income Before Contributions and Transfers
237,512
7,273
(21,794)
222,991
Capital contributions
218,512
110,554
631,527
960,593
Change in Net Assets
456,024
117,827
609,733
1,183,584
Net Assets:
Beginning of Year
3,728,772
1,180,056
15,362,561
20,271,389
Change in Net Assets
456,024
117,827
609,733
1,183,584
End of Fiscal Year
$ 4,184,796
$ 1,297,883
$ 15,972,294
$ 21,454,973
117
CITY OF LA QUINTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2007
Park
Equipment Information Equipment
Replacement Technology and Facility Totals
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to supplies for good and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Net Cash Provided (Used) by Capital and
Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
$ 486,999
$ 373,500 $
350,722
$ 1,211,221
(188,153)
(189,366)
(12,130)
(389,649)
-
(74,358)
-
(74,358)
Increase (decrease) in accrued liabilities
- (605) -
(605)
298,846
109,776
338,592
747,214
(59,589)
(16,965)
(24,540)
(101,094)
12,850
-
12,850
(46,739)
(16,965)
(24,540)
(88,244)
150,058
45,537
39,115
234,710
150,058
45,537
39,115
234,710
402,165
138,348
353,167
893,680
2,867,338
694,953
519,323
4,081,614
$ 3,269,503 $ 833,301 $ 872,490 $ 4,975,294
$ 84,713 $ (38,774) $ (62,439) $ (16,500)
Depreciation
210,287 83,750 401,031
695,068
(Increase) decrease in prepaid expense
- 50,724 -
50,724
(Increase) decrease in due from other governments
- (330) -
(330)
Increase (decrease) in accounts payable
3,846 10,843 -
14,689
Increase (decrease) in accrued liabilities
- (605) -
(605)
Increase (decrease) in compensated absences
- 4,168 -
4,168
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non -Cash Investing, Capital, and Financing Activities:
Capital assets contributed by other funds
214,133 148,550 401,031 763,714
$ 298,846 $ 109,776 $ 338,592 $ 747,214
$ 218,512 $ 110,554 $ 631,527 $ 960,593
118
AGENCYFUNDS
Agency funds are used to account for assets held by the City as an agent for an individual,
private organizations and other governmental units. The agency funds and their purposes are
as follows:
The City of La Quinta has the following agency funds:
Assessment District No. 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.
119
CITY OF LA QUINTA
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2007
Assessment Assessment Assessment
District District District
Assets: No. 92-1 No. 97-1 No. 2001-1 Totals
Cash and investments
$ 318,318 $
142,572 $
447,592 $
908,482
Receivables:
Taxes
10,583
2,711
10,023
23,317
Interest
1,320
580
1,836
3,736
Total Assets
$ 330,221 $
145,863 $
459,451 $
935,535
Liabilities:
Deposits
$ 330,221 $
145,863 $
459,451 $
935,535
Total Liabilities
$ 330,221 $
145,863 $
459,451 $
935,535
120
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2007
As�iessmen
Assets:
Cash and investments
$
Balance
$
77,668
$
66,802
Balance
142,572
July 1, 2006
Additions
Deductions
June 30, 2007
Assessment District No. 92-1
Taxes
2,852
Assets:
2,711
2,852
2,711
Interest
Cash and investments
$
295,735
$ 319,666
$
297,083
$
318,318
Receivables:
135,100
$
80,959
$
70,196
$
145,863
Taxes
5,281
10,583
5,281
10,583
Interest
Deposits
1,233
1,320
$
1,233
$
1,320
Total Assets
$
302,249
$ 331,569
$
303,597
$
330,221
Liabilities:
$
145,863
Deposits
$
302,249
$ 365,612
$
337,640
$
330,221
Total Liabilities
$
302,249
$ 365,612
$
337,640
$
330,221
As�iessmen
Assets:
Cash and investments
$
131,706
$
77,668
$
66,802
$
142,572
Receivables:
Taxes
2,852
2,711
2,852
2,711
Interest
542
580
542
580
Total Assets
$
135,100
$
80,959
$
70,196
$
145,863
Liabilities:
Deposits
$
135,100
$
90,556
$
79,793
$
145,863
Total Liabilities
Assessme t District No. 2001-1
$
135,100
$
90,556
$
79,793
$
145,863
Assets:
Cash and investments
$
411,569
$
288,618
$
252,595
$
447,592
Receivables:
Taxes
22,180
10,023
22,180
10,023
Interest
1,709
1,836
1,709
1,836
Total Assets
$
435,458
$
300,477
$
276,484
$
459,451
Liabilities:
Deposits
$
435,458
$
336,039
$
312,046
$
459,451
Total Liabilities
$
435,458
$
336,039
$
312,046
$
459,451
121
CITY OF LA QUINTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2007
Balance Balance
enc
Total - All gund
July 1, 2006 Additions Deductions June 30, 2007
A v F
s
Assets:
Cash and investments
$
839,010
$
685,952
$
616,480
$
908,482
Receivables:
Accounts
30,313
23,317
30,313
23,317
Interest
3,484
3,736
3,484
3,736
Total Assets
$
872,807
$
713,005
$
650,277
$
935,535
Liabilities:
Deposits
$
872,807
$
792,207
$
729,479
$
935,535
Total Liabilities
$
872,807
$
792,207
$
729,479
$
935,535
122
STATISTICAL SECTION
This part of the City of La Quinta's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government's overall financial health.
Contents
Financial Trends
Page
These schedules contain trend information to help the reader
understand how the government's financial performance and
well-being have changed over time. 124
Revenue Capacity
These schedules obtain information to help the- reader assess
the government's most significant local revenue source, the
property tax. 130
Debt Capacity
These schedules present information to help the reader assess
the ability of the government's current levels of outstanding debt
and the government's ability to issue additional debt in the future. 135
Demographic and Economic Information
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
government's financial activities that take place. 140
Operating Information
These schedules contain service and infrastructure data to help
the reader understand how the information in the government's
financial report relates to the services the government provides
and the activities it performs. 143
123
CITY OF LA QUINTA
Net Assets by Component
Last Seven Fiscal Years
(accrual basis of accounting)
TABLE
Business -type activities:
Invested in capital assets,
net of related debt $ - - - - 41,300,846 42,075,172 42,692,025
Restricted
Unrestricted - - (626,658 1,665,64
_ ) (1,665,646) _) (2085,462)
Total business -type activities net assets - - 40,674,188 40,409,526 40,306,563
Primary government: _
Invested in capital assets,
net ofrelated debt $ 217,419,724 195,474,945 225,818,022 249,059,500 274,661,975 295,634,289 326,421,744
Restricted 45,438,930 74,156,691 40,038,313 44,415,966 43,421,857 65,159,623 49,277,895
Unrestricted 30,698,622 43,025,999 48,290,000 45,169,328 59,734,413 84,463,730 120,870,794
Total primary government net assets $ 293,557,276 312,657,635 314,146,335 338,644,794 377,818,245 445,257,642 496,570,433
The City of Ln 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
124
Fiscal Year
2001
2002
2003
2004
2005
2006
2007
Governmental activities:
Invested in capital assets,
net ofrelated debt
$ 217,419,724
195,474,945
225,818,022
249,059,500
233,361,129
253,559,117
283,729,719
Restricted
45,438,930
74,156,691
40,038,313
44,415,966
43,421,857
65,159,623
49,277,895
Unrestricted
30,698,622
43.025,999
48,290,000
45,169.328
60,361,071
86,129,376
123,256,256
Total governmental activities net assets $ 243,557,276
312,657,635
314,146,335
338,644,794
337,144.057
404,848,1 16
456,263,870
Business -type activities:
Invested in capital assets,
net of related debt $ - - - - 41,300,846 42,075,172 42,692,025
Restricted
Unrestricted - - (626,658 1,665,64
_ ) (1,665,646) _) (2085,462)
Total business -type activities net assets - - 40,674,188 40,409,526 40,306,563
Primary government: _
Invested in capital assets,
net ofrelated debt $ 217,419,724 195,474,945 225,818,022 249,059,500 274,661,975 295,634,289 326,421,744
Restricted 45,438,930 74,156,691 40,038,313 44,415,966 43,421,857 65,159,623 49,277,895
Unrestricted 30,698,622 43,025,999 48,290,000 45,169,328 59,734,413 84,463,730 120,870,794
Total primary government net assets $ 293,557,276 312,657,635 314,146,335 338,644,794 377,818,245 445,257,642 496,570,433
The City of Ln 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
124
CITY OF LA QUINTA TABLE 2
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis ol'aceouming)
Fiscal Year
2001 2002 7003 2004 2005 2006 2007
Expenses
4,319,778
3,595,906
Govemmumal activities
6.284,342
8,547,005
General government
S 3.146,699
3,241,576
Public safety
5.776.628
7,522.532
Community services
940,881
1,411,943
P tanning 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 governmental activities expenses
:7,841.749
33,512,174
Business -type activities:
15,494,656
15J63.422
Golf Course
39,212,009
-
Total business -type activiiies. expenses
56,719,711
-
Total primary government expenses
27;841 749
33,51?,174
Program revenues
Governmental activities
4,523.146
4,520_173
Charges for services:
39.212.009
45,262,085
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
14,375.463
11,662,424
Total governmental activities
169,643
1,594,225
program revenues
21.315,149
18,2t2-434
Business-rype activities
1,797,031
1,799,503
Charges for services:
3,603.173
3,796.495
Golf Course
12,090,143
18,591,423
Total business -type activities
17,601,131
12-385,360
program revenues
_
47,732,131
Total primary government
program revenues
21-115,149
13,212,434
3.540,748
(continued)
(continued)
Net revenues (expenses):
3,120,728
3540,748
Governmental activilies
(6,526,600)
(15,299,740)
Business-lype activities
30,459,263
-
Total nel revenues (expenses)
16.526,60oj
(15,299,740}
General revenues and other changes in net assets:
(34,911,952)
' Governmental activities:
(14,150,873)
1,603.077
Taxes
Property taxes
1,162,634
1,450,196
Tax increment
15124,183
18,899,329
Sales lax
3,778,583
3,093.588
Transient occupancy taxes
4,249,753
3,967,003
Franchise lazes
625,790
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
4,261,767
(21,397)
Miscellaneous
292,036
692,691
Transfers
-
-
Totalgovemmentalactivities
3(.W.1i5
33,695.242.
Business -type activities:
1,326,618
1,179,785
Investment income
-
2,453,642
Transfers
3,291,055.
1,353,866
Total business -type activities
4,336,050
-
Total primary govermment
3 L023,115
33,695,2-02
Changes in net assets
1,967,292
-
Governmental activities
24,496,515
18,395,502
Business -type activities
2,052,246
-
Total primary government
S 24� A9�6.515
18.395.502
3,203.462
4,319,778
3,595,906
4,229.871
6.284,342
8,547,005
10,256,463
8,512,875
9,065,244
12,724,100
1,321,825
1,446,999
1,157,141
1,426,033
4,299,453
19,083,860
7,526,977
5052,239
5,906,915
7.736,520
6,785,759
6,003,013
9.101.582
10;006.335
10,511,874
8,555,401
9.658,779
15,265,051
15,494,656
15J63.422
47,497,312
39,212,009
43.384,794
46,129,054
56,719,711
-
-
1;877,291
4,523,146
4,520,173
1,877,291
4,523.146
4,520_173
_
47,497312
39.212.009
45,262,085
50,652,200
_61,239,884
298,749
337,376,
445,663
717,849.
60,530
2,917,866
4,0(A,621
4,438.115
4,168.206
2,659,515
205,806
252,677
252,501
428.947
387,065
611,278
662,737
754,938
1,873.676.
169,643
1,594,225
1,813,993
2.815,703
3,021,379
2.244.156
1,797,031
1,799,503
1,935,576
3,603.173
3,796.495
5,160,405 r
12,090,143
18,591,423
33,918.901
17,601,131
12-385,360
20,961.050
29.233;921
47,732,131
26,913535
1,091,834
3.120,728
3.540,748
1,091,836
3,120,728
3540,748
;:,535,}60
20,961,050
30,725757
50,852,859
30,459,263
(continued)
(continued)
(continued)
(continued)
(continued)
(34,911,952)
(18,250,959)
(14,150,873)
1,603.077
(29,801,176)
p85.4 S.5j
1,402A1$
(979,4
(34,911,9523
(18,250.959]
(I41y36,328}
200,659
f, -,30,7'$1j;4011
1,600,616
2,198,141
2,579,245
3,679,079
4,999,051
21,191,832
24,450,337
24,443,112
35,168;329
42,583,031
4,345,381
5,240,037
6,773,566
7.6 13,075
8,721,081
4,036,290
4,261,767
4,831.338
5,417,238
51446.361
690,544
895,810
1,185,087
1,044,470
1,259.985
700,154
867,059
1,392,795
1,326,618
1,179,785
1,768,091
1,603,151
2,453,642
2,740233
3,291,055.
1,353,866
1,738,505
4,336,050
6,319,502
11,854,951
-
3,717,470
1,967,292
-
513,876
1,489,612
2,397,474
1,943,093
2,052,246
.W
I (41A59•a135 r
1.137 M1 r
(374.645]
lgo,516.901
34. 32
42r7A941$-
12„4301`36
66,101.726
_
553
1.817
t 41 459,64.k t
1,137,203 t
874,645
41,459,643
1.137,756
876,462
36,400,652
42749,418
54,109,779
67,239,482
81,393,363
1,486,700
24,498,459
(1,500,737)
67,704,803
50,715,725
40,674,188
(:64:662)
(102,963)
1,488.700
24,498.459
39,173.451
67.440,141
50,612.762
The City of La Quints implemented GASB 34 for the fiscal year ended June 30, 2007.
brfonnation prior to the implemeurntion of GASB 34 is not nvmilahle.
The transfer was for land & golf course improvements transferred to the Enterprise Fund
Source: Cityol-La Quintu
125
CITY OF LA QUINTA
Changes in Net Assets - Governmental Activities
Last Seven Fiscal Years
(accrual basis of accounting)
Expenses:
General government
Public safety
Community services
Planning and development
Public works
Interest on long-term debt
Total governmental activities expenses
Program revenues:
Charges for services;
General government
Public safety
Community services
Planning and development
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities
TABLE
214,601
253,891
298,749
Fiscal Year
445,663
717,849
60,530
2001
2002
2003
2004
2005
2006
2007
3,146,699
3,241,576
3,203,462
4,319,778
3,595,906
4,229,871
6,284,342
5,776,628
7,522,532
8.547,005
10,256,463
8.512;875
9,065,244
12,724.100
940,881
1,411.943
1,321.825
1,446,999
1,157,141
1,426,033
4,299,453
6.146.998
7,110,125
19,083,860
7,526,977
5,752,239
5,906,915
7.736.520
5,968,911
6.434,239
6,785,759
6,003,013
9,101,582
10,006.335
10.511,874
5,861,632
7,791,759
8,555,401
9,658,779
15,265,051
15,494,656
15,163,422
27,841,749
33,512,174
47,497,312
39,212,009
43,384,794
46,129,054
56,719,711
214,601
253,891
298,749
337,376
445,663
717,849
60,530
2,860,434
2,544,528
2,917,866
4,004,621
4,438,115
4,168,206
2,659,515
123.960
170,865
205,806
252,677
252,501
428,947
387,065
709,033
565,098
611,278
662.737
754,938
1,873,676
169,643
L.429,942
1,316,373
1,594,225
1,813,993
2,815,703
3,021,379
2,244,156
1,601,716
1,699,255
1,797,031
1,799,503
1,935,578
3,603,173
3,796,495
14,375,463
11 .662,424
5,160,405
12,090,143
18,591,423
33,918,901
17,601,131
program revenues
21.315,149
18,212,434
Net program revenues (expenses)
(6,526,
(15,299,740]
General revenues and other changes in net assets:
14,150,873
Taxes:
(29,8011176)
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 taxes
4,249,753
31967,003
Franchise tax
625,790
654,696
Other tax
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
1,326,618
1,179,785
Total governmental activities
31,023,115
33,695,242
12,585,360
20,961,050
29,233,921
47,732.131
26,918.535
i301 L,952]
(18,250,959)
14,150,873
1.643,077
(29,8011176)
1,800.616
2,198,141
2,579,245
3,679;079
4.999,051
21,191,832
24,450,337
24,443,112
35,168,329
42,583,031
4,345,381
5,240,037
6,773.566
7,613.075
8,723,081
4,036,290
4,261,767
4,831,338
5,437,238
5,448,361
690,544
895,810
1,185,087
1,044,470
1,259,985
700,154
867,058
1,392,795
1,326,618
1,179,785
1,768,091
1,608,151
2,453,642
2,740,233
3,291,055
1,353,868
1,738,505
4,336,050
6,319,502
11,854,951
-
-
3,717,470
1,967,292
-
513,876
1,489,612
2,397,474
1,943,093
2,052,246
(81,459:043)
(1,137.203)
(874,645]
36,400,652
42,749,418
12,650,136
66,101,726
80,516,901
Changes in net assets -
govemmental activities $ 24,496,515 18,395,502 1.488,700 24 _08,41 (1,500,737) 67,704,803 50,715,725
The City of La Qui.nta implemented GASB 34 for the fiscal),ear ended June 30, 2001,
Information nrior to the imnlementation ofGASR 34 is not available.
Source: City of La Quinta
126
CITY OF LA QUINTA
Changes in Net Assets - Business -type Activities
Last Three Fiscal Years
(accrual basis of accounting)
The City of La Quinta implemented the business type activities in FY
2004/2005.
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 Quinta
127
1rr34011
Fiscal Year
2005
2006
2007
Expenses:
Golf Course
1,877,291 2
4,523,146
4,520,173
Total business -type activities expenses
1,877,291
4,523,146
4,520,173
Program revenues:
Charges for services:
Golf Course
1,091,836 2
3,120,728
3,540,748
Total business -type activities
program revenues
1,091,836
3,120,728
3,540,748
Net revenues (expenses)
(785,455)
(1,402,418)
(979,425)
General revenues and other changes in net assets:
Investment income-
-
553
1,817
Transfers
-
164,190
874,645
Capital contributions '
41,459,643
973,013
979,425
.Total business -type activities
41,459,643
1,137,756
1,855,887
Changes in net assets - business -type activities
40,674,188
(264,662)
876,462
The City of La Quinta implemented the business type activities in FY
2004/2005.
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 Quinta
127
1rr34011
CITY OF LA QUINTA
Fund Balances of Govemmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
TABLE 5
The increase was primarily the result of the issuance of the 2004 Financing Authority bonds.
Source: City of La Quinta
128
Fiscal Year
2001
2002
2003
2004
2005
2006
20,07
General fund:
Reserved
$ 11,746,211
12,897,893
21,099,910
29,210,757
32,412,590
23,210,506
28,388,633
Unreserved
23,878,259
27,981,710
26,584,773
25,494,479
31,514,377
53.058,618
56,251,887
Total general fund
S 35.624.470
40,879,603
47,684,683
54,705.236
63.926,967
76,269,124
84,640.520
All other governmental funds:
Reserved
$ 13,480,545
45,508,787
38,404,982
98,476,000
99.,751,862
95,515,445
31,211,751
Unreserved, reported in:
Special revenue funds
6,352,995
12,107,305
9,382,431
9,286,459
19,267,394
36,475,093
27,770,552
Debt service funds
(6,800,030)
(5,622,884)
(6,182,506)
(11,099,245)
(7,236,054)
738,590
10,634
Capital projects funds
18,712,013
12,423,247
16,368,205
28,600,240
1,831,415
6,499,827
58,370,198
Total all other governmental funds
S 31.745.573
64,416.455
57,973,112
125.263.454
113.614;617
139.228.955
117,363,135
The City of La Quinta has elected to show only seven years of data for this schedule.
The increase was primarily the result of the issuance of the 2004 Financing Authority bonds.
Source: City of La Quinta
128
The City of La Quinta has elected to show only seven years of data for this schedule.
Source: City of La Quinta
129
CITY OF LA QWNTA
TABLE 6
Changes in Fund
Balances of Governmental Funds
Last Seven Fiscal
Years
(modified accrual basis of accounting)
Fiscal Year
2001
2002
2003
2004
2005
2006
2007
Revenues:
Taxes
$ 36,605,534
43,011,931
50,326,811
58,301,082
68,175,347
89,704,947
100,103,324
Licenses and permits
2,057,423
1,857,691
1,982,127
3,096,145
3,226,167
5,145,430
2,788,882
Charges for services
1,998,589
1,757,744
2,302,759
2,619,578
3,402,602
3,367,989
1,821,794
Developer fees
2,592,398
2,298,647
3,021,245
5,718,073
6,091,156
12,473,440
5,310,440
Intergovernmental
9,400,340
9,583,451
7,194,521
11,858,627
10,242,876
18,585,468
14,803,971
Investment income
4.,893,919
4,135,009
3,368,709
3,735,984
6,215,291
9,946,212
12,692,350
Special assessments
782,610
757,619
780,259
816,045
825,292
818,526
877,191
Rental income
1,067,076
1,001,389
1,094,510
1,118,744
1,201,463
1,103,600
1,064,978
Loan repayments
-
-
-
-
2,381,602
1,621,850
1,047,020
Other
502,717
584,197
483,777
1,359,539
528,903
637,054
412,353
Total revenues
59,900,606
64,987,678
70,554,718
88,623,817
102,290,699
143,404,516
140,922,303
Expenditures
Current:
General government
3,275,624
3,161,596
3,344,407
4,099,376
3,970,921
4,644,954
6,150,699
Public satiety
5,636,154
7,610,308
8,344,428
9,672,708
12,364,583
13,029,187
15,685,493
Community services
817,460
1,067,837
993,964
1,025,397
1,104,509
1,248,308
4,027,302
Planning and development
6,344,764
10,693,374
7,804,294
7,480,421
5,719,373
5,847,563
28,994,177
Public works
2,613,928
2,897,312
3,685,050
4,536,589
6,206,769
6,987,014
6,755,507
Capital projects
14,456,314
57,342,978
16,057,578
43,331,919
40,012,387
25,445,550
36,420,417
Debt service:
Principal retirement
4,510,420
11,453487
2,931,952
3,610,538
3,793,660
4,777,748
5,647,940
interest and fiscal charges
5,942,929
7,017,016
9,469,314
13,961,721
14,355,577
15,554,612
15,059,977
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
36,498,575
Total expenditures
54,546,974
114,913,074
70,192,981
110,757,923
113,284,100
113,493,227
155,240,087
Excess (deficiency) of
revenues over (under)
expenditures
5,353,632
4'2� 925,396)
361,737
(22,134,10
(109 993,4OI)
29,91I,289
14,317,784)
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
60,954,576
Transfers out
(17,911,515)
(65.255,590)
(23,887,256)
(154,613,662)
(49,248,081)
(35,992,525)
(60,954,576)
Proceeds from sale of capital assets
-
146,603
-
-
8,566,295
8,209,396
124,097
Total other financing
sources (uses)
-
87,146,603
-
96,445,000
8,566,295
8,045,206
124,097
Net change in fund balances
$ 5,353,632
37,221,207
361,737
74,3 L21ELS
(427,106)
37,956,49514(
,193,687)
Debt service as a percentage of
noncapital expenditures
49.1%
54.2%
43.5%
57.9%
62.0%
65.5%
59.7%
The City of La Quinta has elected to show only seven years of data for this schedule.
Source: City of La Quinta
129
CITY OF LA QUINTA
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten 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 I% 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
130
TABLE 7
Entire City (including Redevelopment Agenc 1
Fiscal Year
Taxable
Ended
Less:
Assessed
June 30
Secured
Unsecured
Exenmtions
Value
Percent Change
1998
2,305,593,987
18,844,880
(34,553,805)
2,289,885,062
N/A
1999
2,674,887,437
18,756,736
(38,580,062)
2,655,064,111
15.95%
2000
2,665,520,656
18,712,736
(39,914,784)
2,644,318,608
-0.40%
2001
3,162,945,116
30,599,753
(50,149,068)
3,143,395,801
18.87%
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%
2007
11,854,669,637
101,433,002
(89,688,505)
11,866,414,134
18.95%
NOTE:
In 1978 the voters of the State of California passed Proposition 13
which limited property taxes to a total maximum rate of I% 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
130
TABLE 7
CITY OF LA QUINTA TABLE 8
Assessed Value and Estimated Actual Value of Taxable Property - Redevelopment Agency
Last Two Fiscal Years
(in dollars)
Source: County of Riverside Auditor -Controller
131
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
2007
5,223,508,114
34,250,061 (36,913,004)
5,220,845,171
199,398,233
5,021,446,938
Redevelopment Agenev 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
2007
2,764,306,278
50,616,017 (40,774,044)
2,774,148,251
95,182,755
2,678,965,496
Source: County of Riverside Auditor -Controller
131
Overlapping Rales �:
CITY OF LA QUR4TA
Tax Rale Alm 021-1 a Rale Arca 021015 Tax Ram Arca 020-144 Tax Rale Arca 020-144
City of La Qainta
TABLE 9
Direct and Overlapping Propeny Tax Rales
County of Riverside
(Rale per SI GO of assessed value)
Riverside (..manly O1fee Of Palacallatl
Last Two Fiscal Year
Riverside County Pension Obligation
City
City
Redevelopment
RWcvelopnrcnt
Redcvclnpmun
Redcvelapmnn
0.0761
Non-Projccl Arca
Noa-Project Arca
Project Area I
Project Area I
Projal Area 2
Project Area 2
2006
2007=
2006
2007
2006'
2007' _
Direct Rates
0 0442
0,0132
Coachella Valley Recreation & Park District
City of La Quinti
00760
00695
00000
0.0000
(lootto
0,0000
Redevelopment Agency Project Arca 1
0,0000
00000
05830
0.5880
00000
Il nMxl
Redeveleprnenl agency Project Area 2
000M
0.0000
00000
0 0000
0.2860
01910
County of Rivcrsidc
0.1960
0,2303
03470
03460
034711
03470
Counly Free Library
00250
00272
0.0010
11.00111
1101110
00010
County Structure Fire Protan.,,
00540
00564
00030
00020
00020
00020
Coachella Valley lCV1 Unified School
04320
0.1533
00170
0.0150
00000
00000
D-rl Sands Unified School
000OD
02414
00160
00140
02000
01980
Desert Community College
00700
0,0749
0.0030
00030
00420
00410
Riverside County Office ofEduealion
0.0380
0.0406
0.0030
00030
00230
00220
Riverside County Regional Pule & Opel Space
0,0040
00016
0 0000
00000
00000
00000
CV Public Cemetery
0.0032
00034
00000
00000
00000
D0000
CV Mosquito
00127
0.0136
0,0120
0.0120
00150
00140
CV Park & Recreation
0.0192
00206
0.0010
00020
0.0060
00060
CV Water District
00250
00272
00130
0.0130
0.0770
00760
CV Resource Conservation
0,0003
00003
00000
00000
0.0000
0 owl
CVWD District l Debt ScrvicO
00118
00081
0.0000
00000
0.0000
0.0000
CVWD Siong Water Unit
0.0320
00313
00010
00010
00010
00010
Total Direct Rale
0.9992
1 0000
10000
1 0000
1.0000
1 0000
Overlapping Rales �:
Tax Rate Area 020-005 Tax Rale Arco 020.005
Tax Rale Alm 021-1 a Rale Arca 021015 Tax Ram Arca 020-144 Tax Rale Arca 020-144
City of La Qainta
County of Riverside
Riverside (..manly O1fee Of Palacallatl
Riverside County Pension Obligation
Dcsen Sands Unified
00767
00761
0,0767
0.0761
0.0767
0.0761
Coachella Valley Unified School District
_
Coachella Valley Water District
0.0442
0.0332
00199
0,0208
0 0442
0,0132
Coachella Valley Recreation & Park District
Desert Cann] College District
0.0199
0.0199
0,0208
0.0199
0.0199
00199
Total Overlapping Rate
0.1409
0,1293
0.1175
0,1169
0.1409
0-1293
Trull Direct and Overlapping Rule
1.1401
1.1293
1 1175
1.1169
_ 1.1409
1.1293
NOTE:
In 1978, California Boles passed Preposition 13 which sell the properly tax rule At a
I OMA fixed amount for direct luxes This
I.00% is shared by
all taxing
agencies for which the ssubjeel properly resides within
1 0203
Sources ConntyofRivetsidc Audimr Controller's Office
I Direct rale front Tax Ralo Amp (TRA) 020-059 provided by Hill Caren & Conc and overlapping debt rates from
California Municipal SluGrti4
' Direct rate taken from all nor -RDA TRA's provided by We County of Riverside and do not include ERAF deductions
unit overlapping rales provided by California Municipal Statistics
I Direct ram mkot Corin an analysis by den City of Lq Qatirda Finance Depnm vent stalfofall TRA'( in the Ploject area
and do not include Som RRAF deduoitnt4 and amilipping rout provided by California Munic pal Stwiaaica
4 Direct rule taken from an analysis by the City of La Qainta Finance Department staffafall TRA's in the Project arca
and do not include Sole ERAF delnc60119 and overlapping rates provided by California Municipal Slatislics
132
CITY OF LA QUINTA
Principal Property Taxpayers
Current Year and Nine Years Ago
(in dollars)
$ 593,836,539 5.01%
NOTE :The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
Source: HdL Coren & Cone
133
TABLE 10
2007
1998
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
$ 389,142,025
3.28%
251,572,474
10.99%
Sams Real Estate Trust/Wal Mart
29,878,467
0.25%
CNL Desert Resort
26,280,884
0.22%
Watermark Granite La Quinta
24,480,000
0.21%
TD Desert Development
25,611,489
0.22%
21,758,698
0.95%
Quarry at La Quinta, Inc.
23,145,749
0.20%
Aventine Development
21,911,864
0.18%
Apartments at La Quinta Village II
18,969,865
0.16%
Target Corporation
18,465,969
0.16%
One Eleven La Quinta
15,950,227
0.13%
$ 593,836,539 5.01%
NOTE :The amounts shown above include assessed value data for both the City and the
Redevelopment Agency.
Source: HdL Coren & Cone
133
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
Year Ended for the Percent Subsequent
June 30 Fiscal Year Amount of Levy Years
TABLE I 1
Total Collections to Date
Percent
Amount of Levy
2006 60,716,047 73,097,360 120.39% 2,092,065 75,189,425 123.84%
2007 79,752,191 74,533,984 93.46% 1,802,076 76,336,060 95.72%
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
134
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type
Last Two 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 I
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds!
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 I
Number of Households
Median Household Income
Percentage of Personal Income
Debt Per Capita
TABLE l2
Fiscal Year Ended Fiscal Year Ended
2006 2007
$ 328,311 $
278,311
608,266
734,055
5,186,627
4,431,178
1,850,000
1,750,000
776,030
643,539
141,785,000
139,145,000
6,130,000
6,025,000
89,265,000
87,745,000
6,245,000
5,900,000
(877,230)
(877,230)
251,297,004
245,774,853
1,090,602 825,848
1,090,602 825,848
$ 252,387,606 $ 246,600,701
38,340
41,092
18,762
20,176
$ 65,906 $
67,754
20.41%
18.04%
$ 6,583 $
6,001
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
' The debt service payment for the 2004 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2
low & moderate income tax increment.
135
CITY OF LA QUINTA TABLE 13
Ratio of General Bonded Debt Outstanding
Last Two Fiscal Years
(In Dollars)
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
136
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 1
Bonds
Total Value 1
Capita
2006
6,245,000
89,265,000
147,915,000
243,425,000 2.44% $
6,349
2007
5,900,000
87,745,000
145,170,000
238,815,000 2.01% $
5,812
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
136
TABLE 14
CITY OF LA QUINTA
Direct and Overlapping Debt
June 30, 2007
City Assessed Valuation $ 4,166,001,700
Redevelopment Agency Incremental Valuation 7,700,412,434
Total Assessed Valuation $ 11,866,414,134
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage
Outstanding
Overlapping
Applicable
Debt 6/30/07
Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District
6.420%
$ 63,006,886
4,045,042
Coachella Valley Unified School District
25.590%
94,897,458
24,284,260
Desert Sands Unified School District (DSUSD)
7.628%
236,666,277
18,052,904
DSUSD Lease Tax Obligations
7.628%
16,625,000
1,268,155
Coachella Valley County Water District I.D. No. 55
80.771%
4,995,000
4,034,511
Coachella Valley County Water District I.D. No. 58
7.095%
2,345,000
166,378
DSUSD Community Facilities District No. 1
100.000%
2,000,000
2,000,000
City of La Quinta 1915 Act Bonds .
100.000%
1,940,000
1,940,000
Coachella Valley Water District Assessment District No. 68
86.247%
2,320,000
2,000,930
Total overlapping debt repaid with property taxes
424,795,621
57,792,180
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
1.293%
$ 643,021,333
8,314,266
Riverside County Pension Obligations
1.239%
392,890,000
4,867,907
Riverside County Board of Education COP
1.239%
10,275,000
127,307
Coachella Valley Unified School District COP
25.590%
54,930,000
14,056,587
DSUSD COP
7.628%
13,220,000
1,008,422
Coachella Valley County Water District I.D. No. 71 COP
9.475%
7,485,000
709,204
Coachella Valley Recreation and Park District COP
11.029%
2,565,000
282,894
Total overlapping other debt
1,124,386,333
29,366,587
Total overlapping debt
$ 1,124,386,333
87,158,767
City direct debt
Total direct and overlapping debt
252,387,606
$ 339,546,373
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
137
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 al I real and personal property of the City.
The City of La Quinta 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
138
CITY OF LA QTITNTA
TABLE 15
Legal Debt Margin Information
Last Seven Fiscal Years
( in dollars )
Fiscal Year
2001 2002
2003
2004
2005
2006
2007
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
11,866,414,134
Debt limit percentage
15% 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
1,779,962,120
Total net debt applicable to limit:
General obligation bonds
_
-
Legal debt margin $
471,509,370 565,133,918
803,685,527
933,070,665
1,172,079,988
1,496.346,997
1,779,962,120
Total debt applicable to the limit
as a percentage of debt limit
0.0% 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 al I real and personal property of the City.
The City of La Quinta 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
138
nn1.MWA
CITY OF LA QUINTA
Pledged -Revenue Coverage
Last Fiscal Year
(In Dollars)
Tax Allocation Bonds - Project Area 1
Fiscal Year
Debt Payments
Increment I
Principal
Ended
Tax
Less: Other Net Tax
Debt Service
June 30
Increment
Debt Payments Increment 1
Principal Interest Coverage
2006
36,506,201
20,638,731 15,867,470
2,500,000 7,805,905 1.54
2007
42,029,503
20,820,149 21,209,354
2,640,000 7,658,900 2.06
Tax Allocation Bonds - Project Area 2
Fiscal Year
Ended
June 30
2006
2007
Tax Less: Other Net Tax Debt Service
Increment
Debt Payments
Increment I
Principal
Ended
Tax Less: Other
19, 849, 893
17,3 25,411
2,524,482
100,000
20,777,158
18,553,875
2,223,283
105,000
2004 Local Agency Revenue Bonds
Interest Coverage 1
319,168 6.02
314,785 5.30
Fiscal Year
Ended
Tax Less: Other
Net Tax
Debt Service
June 30
Increment 3 Debt Payments
Increment
Principal Interest Coverage
2006
14,089,024 0
14,089,024
735,000 4,436,981 2.72
2007
15,701,664 0
15,701,664
1,520,000 4,402,909 2.65
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Ended Lease Less: Other Net Lease Debt Service
June 30 Revenue 2 Debt Payments Revenue Principal Interest Coverage
2006 680,575 0 680,575 330,000 350,575 1.00
2007 678,865 0 678,865 345,000 333,865 1.00
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
statements.
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.
139
CITY OF LA QUINTA
Demographic and Economic Statistics
Last Two Calendar Years
Sources- (1) State of California Department of Finance - January 1 of each year
(2) State of California Economic Development Department website
(3) City of La Quinta Building & Safety and Community Development Departments
(4) Desert Wheeler's [Newsletter City Overview
140
TABLE 17
Calendar
Calendar
Year
Year
2006
2007
City Land (Sq Miles)
(3)
35.1
35.1
Population
(1)
38,340
41,092
Median Household Income (in dollars)
(4)
$65,906
$67,754
Number of Dwelling Units
(3)
18,762
20,176
Persons per Household
(3)
2.855
2.846
Average Income per person per household
$23,084
$23,807
Labor Force
(2)
14,500
15,300
Employment
(2)
14,100
14,900
Unemployment Kate
(2)
2.76%
2.61%
Median age
(3)
36
36.4
Sources- (1) State of California Department of Finance - January 1 of each year
(2) State of California Economic Development Department website
(3) City of La Quinta Building & Safety and Community Development Departments
(4) Desert Wheeler's [Newsletter City Overview
140
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
1 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
141
2007
19982
Percent of
Percent of
Number of
Total
Number of
Total
Employer
Activity
Employees
Ernployment
Employees
Employment
La Quinta Resort & Club
Hotel & Golf Resort
1,600
10.74%
1,500
Wal-Mart Super Center
Retail
800
5.37%
250
Rancho La Quinta
Golf Resort
700
4.70%
PGA West Club
Golf Resort
500
3.36%
1,100
Home Depot
Retailer
240
1.61%
-
Imperial Irrigation District
Public Utility
200
1.34%
Lowe's Horne Improvement
Retailer
150
1.01%
Albertsons 1
Grocery Store
-
0.00%
126
Stater Brother's
Grocery Store
150
1.01%
Tradition Golf Club
Golf Resort
100
0.67%
Ralph's
Grocery Store
88
0.59%
100
Total employment listed
4,528
30.39%
3,076
Not Available
Total City Employment - July
1
14,900
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
1 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
141
Function
CITY OF LA QUINTA
Full-time City Employees
by Function
Last Three Fiscal Years
Fiscal Year
Ending
June 30
2005
Fiscal Year
Fiscal Year
Ending
Ending
June 30
June 30
2006
2007
Administration
8.00
9.00
10.00
City Cleric
5.00
5.00
5.00
Finance
8.00
9.00
9.00
Community Services
8.00
10.25
10.25
Building and Safety
21.00
22.00
24.00
Planning and Development
9.00
12.00
12.00
Public Works
23.50
26.25
26.25
Golf Course
0.50
n 50
n cn
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.
142
97.00
TABLE 19
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:
Permi ts:
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
Planning and Development:
Number of residential units approved
Commercial square footage approved
Source: City of La Quinta
CITY OF LA QUINTA
Operating Indicators
by Function
Last Two Fiscal Years
2006 2007
3,208
3,424
892
1,022
4,696
4,722
39
73
$327,417,000
$392,729,000
5,081
4,837
202
158
304 218
618 419
1,044
526
227
38
866
612
1,502
963
1,607
1,404
5,246
3,543
143
1,901
687
909
296
1,190
1,444
141
76
1,611
2,032
42,050
44,981
55,002
99,659
5,550
5,325
745
260
1,891
1,583
14,305 12,955
3,481 4,192
1,373 1,192
4,668 7,809
3,402 6,827
38,934 40,548
71.12 76.97
1,063 534
533,726 124,821
TABLE- 20
CITY OF LA QUINTA
Capital Asset Statistics
by Function
Last Two Fiscal Years
Parks and recreation:
Parks
Fiscal Year
Fiscal Year
Park Acreage
Ending
Ending
Senior Center
June 30
June 30
Museum
2006
2007
Public works:
1
1
Streets (miles)
118.40
122
Bikepaths (miles)
22.00
22
Streetlights
73
85
Traffic signals
44
47
Traffic Signs
2,799
2,845
Bridges
12
12
Parks and recreation:
Parks
12
12
Park Acreage
234
226
Senior Center
1
1
Museum
1
1
Library
1
1
Golf Course:
Municipal golf courses
1
Source: City of La Quinta
144
TABLE 21
TABLE 22
CITY OF LA QUINTA
Schedule of Insurance in Force
June 30, 2007
Company Name
Policy Number
Coverage
Limits
Term
Premium
Hartford
PEBAO7068
Employee Dishonesty,
$1,000,000
02/03/07 - 08
$2,976
Forgery, Computer Fraud
Lexington
1115849
All Risk Property Insurance
40,900,000
07/01/07 - 08
43,869
Including Auto Physical Damage
(Excluding Earthquake)
Pacific Ins
ZG0036449
Earthquake & Flood
7,500,000
02/07/07 - 08
113,000
Endurance Ins
10000326200
Real & Personal Property
Including Contingent Tax Interruption
California
Certificate #5
Comprehensive General $0
Deductible Retention
07/01/07 - 08
255,568
Joint Powers
Liability
$50 Million
Insurance Authority
California Certificate
Joint Powers #5009-056
Insurance Authority
Worker's Compensation
145
5,000,000 07/01/07-08 172,288
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146