1989-1990 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)N
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El
IN
I
CITY OF IA QUI M
June 30, 1990
Page
Number
Independent Auditors' Report 1
General Purpose Financial Statements:
C.cmbi.ned Balance Sheet - All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Goverrmental Fund 'Types 3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget (GAAP Basis) and Actual -
General and Special Revenue Fund Types 4
Combined Statement of Revenues, Expenses, and Changes,
in Retained Earnings - Proprietary Fund Type 5
Combined Statement of Cash Flaws - Proprietary Fund Type 6
Notes to Financial Statements 7 - 29
Combining and Individual Fund Financial Statements:
General Fund:
Comparative Balance Sheet 30
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 31
Special Revenue Funds:
Combining Balance Sheet
32
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 33
Federal Revenue Sharing Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 34
State Gas Tax Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 35
Page
Nunbe
Special Revenue Funds (Continued):
Quimby Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 36
CamRniity Development Block Grant Special Revenue Fund:
Statement of Revenues, Exp tures and Changes in
Fund Balance - Budget (GAAP Basis) and Actual 37
Landscape Maintenance District Special Revenue Fund:
Statement of Revenues, Eqenditures and Changes in
Fund Balance - Budget (GAAP Basis) and Actual 38
Infrastructure Special Revenue Fund:
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget (GAAP Basis) and Actual 39
Village Parking Special Revenue Fund:
Statement of Revenue, Expenditures, and Changes in
Fund Balance - Budget (GAAP Basis) and Actual 40
Assessment District 89-1 Special Revenue Fund:
Statement of Revenue, Expenditures, and Ganges in
Fund Balance - Budget (GAAP Basis) and Actual 41
Debt Service Funds:
Camparative Balance Sheet
42
C.cuparative Statement of Revenues, Expenditure, and Changes
in Fluted Balance - Debt Service Funds 43
Capital Projects Funds:
Combining Balance Sheet
44
Cmbining Statement of Revenues, Expenditures and
Ganges in Fund Balances 45
Agency Funds:
Corrbining Balance Sheet
46
Statement of Changes in Assets and Liabilities 47
DIEHL,EVANs
&COMPANY
cF1tnF7ED PUBLIC ACCOUNTANTS
A F,AR NEK''l-PFV 04C LUM A00OUMANIY Q)RIORATUM
18401 VON KARMAN, SUITE 200
IRVINE . CALIFORNIA 92715-1542
PHONE (714) 757-7700
FAX (714) 757-2707
City Council
City of La Quinta
La Quinta, California
October 3, 1990
0 1 e I &I M?Ja►INo21►1 s n Y(•) zZiMi-SIG• r�
OTHER OFFICES AT!
2965 ROOSEVELT ST.
CARLSBAD, CA 92008-2389
(619) 729-2343
120 WEST WOODWARD AVE.
ESCONDIDO, CA 92025-9990
(619) 741-3141
We have audited the general purpose financial statements of the City of
La Quinta, California as of and for the year ended June 30, 1990, as listed in
the table of contents. These financial statements are the responsibility of
City's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing starK ards.
Those standards regl i i e that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose 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 g principles used and significant estimates
made by management, as well as evaluating the overall general purpose financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City of
La Quinta as of June 30, 1990, and the results of its operations and the cash
flows of its proprietary fund type for the year then ended in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The combining and individual fund
financial statements listed in the table of contents are presented for purposes
of additional analysis and are not a required part of the general purpose
financial statements of the City of La Quinta. The information has been
subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the general purpose financial statements taken as a
whole.
-1-
ASSETS
Cash and temporary investments
(Notes 2e and 4)
Accrued property taxes receivable
Accrued interest receivable
Accounts receivable
Due from other funds (Note 11)
Advances to other funds (Notes 5e and 11)
Deposits
Restricted cash (Notes 4 and 15)
General fixed assets (Notes 2f and 3)
Amount available in debt service fund
Amount to be provided for payment of
Long-term debt
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable and accrued expenses
Deposits
Compensated absences payable
(Notes 29 and 5f)
Contracts payable (Note 5a)
Bonds payable (Note 5b)
Notes payable to School Districts
(Note 5d)
Due to other funds (Note 11)
Due to County of Riverside (Note 5c)
Advances from other funds (Note 5e)
TOTAL LIABILITIES
CITY OF LA QUINTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1990
Fiduciary Account Groups
Totals
Governmental Fund Types
Fund Type General General
(Memorandum Only)
Special Debt
Capital Proprietary
Agency Fixed Long -Term
June 30, June 30,
General
Revenue Service
Projects Fund
Fund Assets Debt
1990 1989
$6,073,481
$7,124,305 $4,401,838
$4,667,972 S 20,000
S 442,964 S S -
$22,730,560 S19,090,292
-
- 102,251
12,625
-
114,876 153,434
179,165
- 67,842
19,502
-
266,509 188,232
384,542
24,349 -
74,938
-
483,829 799,212
-
- -
28,302
28,302 1,181,048
1,999,895
- -
-
1,999,895
63,003
-
-
63,003 35,141
- 1,316,396
-
1,316,396 4,130,786
- -
3,547,988 -
3,547,988 2,592,543
5,828,925 5,828,925 7,767,938
- - - 32.273,065 32,273,065 26.256.107
$8,700,086 57,148,654 55,888,327 E4,803,339 S 20,000 S 442,964 $3,547,988 $38,101.990 10 653,348 $62,194,733
$ 735,310 S 296,845 S 59,402 S 781,757 S S • $ S
S 1,873,314 S 963,123
119,408 - 442,964
562,372
186,176
- 187,726
187,726
139,228
64,687
64,687
86,250
- 27,370,000
27,370,000
28,000,000
• - - 4,173,040
4,173,040
2,543,306
• 28,302 - -
28,302
1,181,048
- - - 4,306,642
4,306,642
3,233,747
- 1,999,895
1,999,895
854,71 296,845 59,402 810,059 442,964 38,101,990
40,565,978
36,332.878
FUND EQUITY:
Investments in fixed assets - 30547,988 3,547,988 2,592,543
Retained earnings:
Reserved for equipment replacement 20,000 20,000
Fund balances (Note 10):
Reserved 3,280,562 3,280,562 1,214,588
Unreserved:
Designated 4,564.806 6,851,809 5,828,925 3,993,280 - - 211,82Q 22,054,724
TOTAL FUND EQUITY 7,845,368 6,851,809 5,828,925 3,993,280 20,000 3,547,988 - 28,087,370 25,861,855
TOTAL LIABILITIES AND FUND EQUITY $8,700,086 __ __- _ 55,888,327 54,803,339 S 20,000 S 442,964 S3,547,988 S38,101,990 $68,653,348 $62,194,733
CITY OF LA GUINTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL
FUND TYPES
For the
year ended June 30,
1990
With comparative totals for the year ended June 30, 1989
Totals
(MemSpecial
Debt
Capital
June 30,
June
June 30, '
General
Revenue
Service
Projects
1990
1989
REVENUES:
Taxes
S 3,154,942
S -
S 5,438,796
S 671,438
S 9,265,176 S
6,935,566
Licenses and permits
3,286,872
3,286,872
3,656,307
Intergovernmental revenues
630,791
149,400
-
780,191
609,792
Revenues from use of money or property
155,530
579,834
646,956
742,707
2,125,027
1,191,168
Fees
2,570,466
-
-
2,570,466
-
Contributions
-
542,335
-
542,335
278,159
Other revenue
114,686
2,646
-
1,721
119,053
939,539
TOTAL REVENUES
7,342,821
3,844,681
6,085,752
1,415,866
18,689,120
13,610,531
EXPENDITURES:
Current expenditures:
General government
1,514,110
-
757,371
2,271,481
1,596,758
Public safety
1,883,105
-
-
1,883,105
1,491,594
Street maintenance
-
327,892
327,892
645,895
Community services
928,798
-
-
928,798
749,220
Capital outlay
1,153,473
8,658,147
9,811,620
1,844,430
Debt Service:
Interest
2,494,849
-
2,494,849
2,003,028
Principal
7,977,979
-
7,977,979
1,102,160
Bond issue costs
634,230
110,998
745,228
Taxing agency payments
409,402
-
409,402
53,433
Trustee fees
35,737
35,737
-
Payment to refunded bond escrow agent (Note 5b)
2,321,404
•
2,321,404
TOTAL EXPENDITURES
4,326,013
1,481,365
13,837,864
9,562,253
29,207,495
9,486,518
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
3,016,808
2,363,316
(7,752,112)
(8,146,387)
(10,518,375)
4,124,013
OTHER FINANCING SOURCES (USES):
Payment to refunding bond escrow agent (Note 5b)
(19,656,325)
-
(19,656,325)
-
Proceeds of advance (Note 5e)
-
9,236,922
9,236,922
1,091,104
Proceeds from bonds (Note 5b)
-
20,290,555
109,477
20,400,032
8,017,105
Contributions from property owners (Note 12)
-
360,144
-
1,447,672
1,807,816
1,052,791
Operating transfers in (Note 11)
386,553
2,309,423
7,584,469
1,222,955
11,503,400
70,439
Operating transfers out (Note 11)
(2,329,423)
(58.617)
(1,399,445)
(7,735,915)
(11,523,400)
(70,439)
TOTAL OTHER FINANCING SOURCES (USES)
(1,942,870)
2,610,950
6,819,254
4,281,111
11,768,445
10,161,000
EXCESS OF REVENUES AND OTHER SOURCES OVER
(UNDER) EXPENDITURES AND OTHER USES
1,073,938
4,974,266
(932,858)
(3,865,276)
1,250,070
14,285,013
FUND BALANCES - JULY 1
6,771,430
1,877,543
6,761,783
7,858,556
23,269,312
9,104,299
Prior period adjustment
-
-
(120,000)
Residual equity transfers in
(119,321)
Residual equity tranfers out
119,321_
FUND BALANCES - JUNE 30
S 7,845,368
S 6,851,809
S 5,828,925
S 3,993,280
$ 24,519,382
S 23,269,312
See independent auditors' report and notes to financial statements.
-3-
CITY OF LA QU1NTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUND TYPES
For the year ended June 30, 1990
General Fund Special Revenue Funds Totals (Memorandum Only)
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable)
REVENUES:
Contributions
$ - $
S - S
87,000 S
542,335 S
455,335 S
87,000 S
542,335 S
455,335
Taxes
2,274,937
3,154,942
880,005
-
-
-
2,274,937
3,154,942
880,005
Licenses and permits
840,900
3,286,872
2,445,972
-
-
-
840,900
3,286,872
2,445,972
Intergovernmental revenues
582,856
630,791
47,935
204,612
149,400
(55,212)
787,468
780,191
(7,277)
Revenues from use of money or property
160,000
155,530
(4,470)
-
579,834
579,834
160,000
735,364
575,364
Fees
-
-
450,000
2,570,466
2,120,466
450,000
2,570,466
2,120,466
Other revenue
89,535
114,686
25,151
3,000
2,646
(354)
92,535
117,332
24,797
TOTAL REVENUES
3,948,228
7,342,821
3,394,593
744,612
3,844,681
3,1.00.069
4,692,840
11,187,502
6,494,662
EXPENDITURES:
Current expenditures:
General government
1,584,242
1,514,110
70,132
•
-
-
1,584,242
1,514,110
70,132
Public safety
1,948,721
1,883,105
65,616
-
-
-
1,948,721
1,883,105
65,616
Street maintenance
-
-
•
423,477
327,892
95,585
423,477
327,892
95,585
Community services
1,061,952
928,798
1.33,154
220,073
-
220,073
1,282,025
928,798
353,227
Capital outlay
-
-
_ 8,300,400 _
1,153,473
7,146,927
8,300,400
1,153,473 _
7,146,927
TOTAL EXPENDITURES
4,594,915
4,326,013
268,902
8,943,95D
r 1,481,365
7,462,585
13,538,865
5,807,378
7,731,487
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
(646.687)
3,016,808
3,663,495
(8,199,338)
2,363,316
10,562,654 (8,846,025)
5,380,124 „
14,226,149
OTHER FINANCING SOURCES (USES):
operating transfers in
386,553
386,553
-
2,3D9,423
2,309,423
2,695,976
2,695,976
Operating transfers out
(2,329,423)
(2,329,423)
-
(58,617)
(58,617)
-
(2,388,040)
(2,388,040)
Contributions from property owners
-
-
88,414
360,144
271,730
88,414
360,144
271,730
TOTAL OTHER FINANCING SOURCES
(USES)
- (1,942,870)
(1,942,870)
88,414
2,610,950
2,522.536
88,414
8 080
579,666
EXCESS OF REVENUES AND OTHER SOURCES OVER
(UNDER) EXPENDITURES AND OTHER USES
(646,687)
1,073,938
1,720,625
(8,110,924)
4,974,266
13,085,190
(8,757,611)
6,048,204
14,805,815
FUND BALANCES - JULY 1
6,771,430
6,771,430
-
1,877,543
1,877,543
-
8,648,973
8,648.973
FUND BALANCES JUNE 30
S 6,124,743 S 7,845,368
S 1,720,625
S(6,233,381)S 6,851,809 S
13,085,190 S
(108,638)S 14,697,177 S
14,805,815
CITY OF LA QUIRT
COMBIINE7 STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN PHDO ED EARNINGS - PROPRIETARY FUND TYPE
For the year ended June 30, 1990
With cmParat've totals for the year ended June 30, 1989
O.C7aRL 11.1.1YG INCOME
NON -OPERATING REVENUES
Operating transfers in
NET INCOME
RETAINED EARNINGS - JULY 1
RETAINED EARNINGS, RESEI$VF.I3 - JUN;E 30
Internal Totals
Service Memorandum Only)
(Equipment June 30, June 30,
Replacement) 1990 1989
20, 000 .. 20, 000 -
20,000 20,000
20,000 20,000 $ -
See independent auditors' report and notes to financial statements.
-5-
CITY OF LA QUI M
For the year ended June 30, 1990
With comparative totals for the year ended June 30, 1989
CASH FLOWS FROM OPERATING ACITVITIES:
Operating income
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIV=:
Operating transfers -in
NET INCREASE IN CASH AND CASH EQUIVA-am
CASH AND CASH EWIVAT= AT BEGDVING OF YEAR
CASH AND CASH EQUIVALEN'I5 AT END OF YEAR
Internal
Service
(Equiprent
Replacement)
Totals
(Memorandum (
June 30, Jur
1990
20,000 20,000
20,000
20,000
20,000
$ 20,000 $
See independent auditors' report and notes to financial statements.
CITY OF LA QUIM
NarrES T+0 FINANCIAL STATEMENTS
June 30, 1990
: �1--*'ami► �►iMYY
The reporting entity "City of La Quinta" includes the accounts of the City
and the La Quinta Redevelopment Agency (Agency). Although the City and the
Agency are legally separate entities, the La Quinta City Council exercises
oversight responsibility over the Agency. The members of the City Council
also act as the governing body of the Agency, and the City provides
financial and management assistance to the Agency.
The City of La Quinta was incorporated on May 1, 1982 and has established a
Council/Manager form of government.
The La Quinta Redevelopment Agency was established in November, 1983,
pursuant to the State of California Health and Safety Code, Section 33000.
The primary purpose of the Agency is to encourage private redevelopment of
property and to rehabilitate areas suffering from economic disuse. The
Agency has established two redevelopment project areas for the purpose of
developing flood control improvements and facilities.
The City's c uparative financial statements as of, and for the year ended,
June 30, 1989 have been presented herein. However, prior year comparisons
for each individual fund are not presented since their inclusion would make
the statements unduly complex and difficult to read.
2. SIGNIFICANT ACCOUNTING POLICIES:
a. Description of funds and account groups:
The accounts of the City are organized on the basis of fund types and
account groups, each of which is considered a separate accounting entity
with a self -balancing set of accounts.
The following are the types of funds and account groups used:
ggA enmiental Fund Tye
1) General Fund - accounts for all financial resources except those
required to be accounted for in another fund.
2) Special Revenue Funds - account for the proceeds of specific revenue
sources that are restricted by law or administrative action to
expenditures for specified purposes.
3) Debt Service Funds - accounts for the accumulation of resources for,
and the payment of, general long-term debt principal, interest, and
related costs.
See independent auditors' report.
-7-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMERM
(Continued)
June 30, 1990
2. SIGNIFICANT ACOOUN IM POLICIES (CONTINUED):
a. Description of funds and account groups (Continued):
4) Capital Projects Finds - account for financial resources used
acquisition or construction of major capital facilities ,
equipment (other than those financed by the Proprietary Fund).
Proprietary Flared
Internal Service Fund - account for financing of goods and servi
provided by one department to another department of the City.
FiduciarV Fund TvDe
Agency Funds - account for assets held by the City as an agent
individuals or private organizations.
Account Grottos
1) General Fixed Assets Account Group - account used to maint,
control and cost information on capital assets owned by the City.
2) General long -Term Debt Account Group - accounts for the unmatu
long-term liabilities that will be financed from governmental fur.
b. Basis of accounting:
Governmental fund types are accounted for using the modified accr
basis of accounting. Revenues are recognized when they bec(
"susceptible to accrual", that is, measurable and available to fina.
expenditures of the current period. Accrued revenues include prope
taxes (see Note 8), sales taxes and earnings on investment
Expenditures are recorded when the liability is incurred, except t:
principal and interest payments on long-term debt are recorded
expenditures when due. Certain accrued interest amounts are reported
the long-term debt account group. (See Note 5).
The accrual basis of accounting is followed by the proprietary fu-
Revenues are recognized when they are earned and expenses are recogni
when the liability is incurred.
See independent auditors' report.
-8-
CITY OF IA QUIM
Nairn To FIlw= snuEm?is
(Continued)
June 30, 1990
b. Basis of accounting (Continued):
Fiduciary fund types are accounted for according to the nature of the
fund. The City has only Agency Funds which are purely custodial in
nature (assets equal liabilities) and thus does not involve measurement
of results of operation. The Agency funds are accounted for on the
modified accrual basis.
c. Measurement focus:
All governmental funds are accounted for on a spending or "financial
flow" measurement focus. This means that generally only current assets
and current liabilities are included on their balance sheets, with the
exception that the noncurrent portion of long-term receivables due to
governmental funds are reported on their balance sheets, offset by fund
balance reserve accounts. Statements of revenue, expenditures, and
changes in fund balances for governmental funds generally present
increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
The proprietary fund is accounted for on a cost of services or "capital
maintenance" measurement focus. This means that all assets and
liabilities (whether current or noncurrent) associated with the activity
are included on the balance sheets. The reported fund equity presents
total net assets. Proprietary fund operating statements present
increases (revenues) and decreases (expenses) in total net assets.
d. Budgetary accounting
Budgetary process: The annual budget, which includes estimated revenue
and appropriations, is adopted by the City Council and presented in the
financial statement as follows:
1) Budgets for the General, Special, Revenue and Capital Projects Funds
are adopted on a basis substantially consistent with generally
accepted accounting principles (GAAP).
2) Budgetary data is presented for the General and Special Revenue
Funds. Budgetary information is not presented for the Capital
Projects Funds, since these funds are budgeted on a long --term
project -by -project basis. Budgetary information is not presented
for the Debt Service Fund because no budget is adopted.
See independent auditors' report.
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1990
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Budgetary accounting (Continued):
3) Estimated revenue is the original estimate with modifications
new programs which are anticipated to be received during the fi:
year.
4) Original appropriations are modified by supplemental appropriati(
5) Budgetary control is maintained over all accounts and expenditi
and expenditures are not allowed to exceed appropriations except
those specific projects and programs approved in advance by the
Council.
6) The City Council approves all significant changes.
7) Under Article XIIIB of the California Constitution (the C
Spending Limitation Initiative), the City is restricted as to
amount of annual appropriations from proceeds of taxes, anc
proceeds of taxes exceed allowed appropriations, the excess n
either be refunded to the State Controller, returned to
taxpayers through revised tax rates or revised fee schedules of
excess in one year may be offset by a deficit in the following yf
For the fiscal year ended June 30, 1990, based on calculationE
City management, proceeds of taxes did not exceed appropriations,
e. Investments:
Investments are stated at cost, or amortized cost, which were equal
market value at June 30, 1990. (See Note 4). If market values decl
below cost, no loss is recorded if such declines are conside
temporary. The City's policy is to hold investments until maturity,
until market values equal or exceed cost. However, if the liquic
needs of the City were to require that investments be sold at a 1
subsequent to year end, the decline in value would be recorded as a
at year end.
f. General fixed assets:
General fixed assets are recorded as expenditures of the vari
governmental fund types at the time of purchase. Such assets incl
land, leasehold improvements, furniture, fixtures and equipment and
capitalized in the general fixed asset group of accounts at cost, or
contributed, at fair market value. The costs of roads, streets
sidewalks, bridges, curbs and gutters, drainage systems, light
systems and similar assets are not capitalized. No depreciatior
provided on general fixed assets.
See indepe ident auditors' report.
-10-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1990
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
In goverimiental funds, compensated absences (unpaid vacation and sick
leave) are recorded as expenditures in the year paid, as it is the City,s
policy to liquidate any unpaid vacation or sick leave existing at June 30
from future resources rather than currently available expendable
resources. Accordingly, the entire unpaid liability for the gaverrmiental
funds is recorded in the General Long�Texm Debt Account Group.
h. Claims and judgements:
When it is probable that a claim liability has been incurred at year end,
and the amount of the loss can be reasonably estimated, the City records
the estimated loss. If the loss is to be paid from currently available
expendable resources, it is recorded in a governmental fund. If the lass
is to be paid from future resources, it is recorded in the general long-
term debt account grclup. No amount was accrued at June 30, 1990. Small
dollar claims and judgements are recorded as expenditures when paid.
i. Statement of Cash Flows:
For purposes of the Statement of Cash Flows of the Internal Service Fund,
all cash and investments are considered to be cash and cash equivalents.
j. Total Columns on Canbined Financial Statements:
Total columns on the Combined Financial Statements are captioned
"Memorandum Only" to indicate that they are presented only to facilitate
financial analysis and that such data is not comparable to a
consolidation. Interfund eliminations have not been made in the
aggregation of this data.
A summary of changes in general fixed assets at June 30, 1990 is as follows:
Balance
Retire-
Balance
June 30 1989
Additions
ments
June 30 1990
Land
$ 1,828,254
$ 732,293
$ -
$ 2,560,547
Equipment and furniture
378,080
80,600
-
458,680
Vehicles
372,847
42,434
14,000
401,281
Leasehold improvements
TOTAL GENERAL
13,362
_ 1144118
— —
--
—127,480
F'DCED ASSETS
$ 2,592,543
$ 969,445
g 14,000
$ 3,547,988
See independent auditors, report.
-11-
CITY OF LA 9M4TA
NOTES TO EMWCIAL STATEMENTS
(Continued)
June 30, 1990
4. CASH AND INVESTMENTS:
Investments
Authorized Investments:
Under provisions of the City's Investment Policy, and in accordance w
Section 53601 of the California Government Code, the Agency may invest
the following types of investments:
U.S. Treasury Bills, Notes or Bonds Bonds issued by the City of
Bankers Acceptances La Quinta or La Qu nta
Negotiable Certificates of Deposit RedevelopTmt Agency
Repurchase Agreements California Local Agency
California County Investment Pool Investment Fund (LAIF)
Federal Agency Obligations
California Local Agency Investment Fund
The IMF is a special fund of the California State Treasury through wh
local governments may pool investments. The City and the Redevelopm
Agency each may invest up to $10,000,000 in the fund. Investments in L
are highly liquid, as deposits can be converted to cash within 24 ho,
without loss of interest. All investments with IAIF are secured by the f
faith and credit of the State of California.
Allocation of Interest Income Among Funds:
Interest income from pooled investments is allocated to those funds wh
are required by law or administrative action to receive interest. Inter,
is allocated on a quarterly basis based on the preceding month's ending c
balance in each fund receiving interest.
Classification of De sits and Investments By Credit Risk
Deposits and investments are classified into three categories of crec
risk. These categories are as follows:
Deposits:
Category 1 - Deposits which are insured by FDIC, FSLIC, a state deposit(
insurance fund or a multiple -financial institution collate:
pool, or deposits which are collateralized with securit=
held by the City or the City 's agent in the City 's name.
See independent auditors' report.
-12-
CITY OF LA QUITFi'A
NarES TO FIlWCTAT • STATEMENTS
(Continued)
June 30, 1990
Category 2 - Deposits which are collateralized with securities held by the
pledging financial institutions trust department in the City's
name.
Category 3 - Deposits which are uncollateralized, or collateralized but the
pledged securities are not held in the City's name.
Invests:
Category 1 - Investments which are insured by SIPC, or where the securities
are held by the City or the City's agent in the City's name.
Category 2 - Investments which are uninsured, where the securities are held
by the purchasing financial institution's trust department or
agent in the City's name.
Category 3 - Investments which are uninsured, where the securities are held
by the purchasing financial institution's trust department or
agent, but not in the City's name.
Deposits and investments were categorized as follows at June 30, 1990:
Market
1 2 3 Cast Value
Deposits:
Demand accounts $ 108,490 $1,144,481 $ - $ 1,252,971 $ 1,252,971
Certificates of
deposit 9961000 _ 1,300,000 - 2,296,000 2,F2961000
Total Deposits $1,104,490 $2,444,481 $ - 31,548,971 3,548,971
Investments:
Repurchase agreements $3,429,589 $ - $ - 3,429,589 3,429,589
Fiscal agent
investments - - 1 316,396 1,316,396 1,316,396
Total Investments $3,429,589 $ $1,316,396 4,7451985 4,745,785
California Local Agency
Investment Fund (LAIF) 15,752,000 15,752,000
Total Cash and
Investments $24,046,956 $24,046,956
See independent auditors' report.
-13-
CITY OF LA QLT=
NarES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1990
�. i� •• ��
Cash and investments are reported in the ac=ipanying combined balance s,
as follows:
Cash and investments - unrestricted $ 22,730,560
Cash and investments with fiscal agent -
restrlcted 1,316,396
$ 24,046,956
A stmmary of changes in long-term debt for the year ended June 30, 199
as follows:
Contract payable
Bonds payable
Due to County of
Riverside
Due to School Districts
Advances to other funds
Compensated absences
payable
Balance at Balance.
June 30, 1989 Additions Pa eats Junes
$ 86,250 $ - $ 21,563 $ 64
28,000,000 19,695,000 20,325,000 27,370
3,084,309 1,222,333 - 4,306
2,496,539 2,026,501 350,000 4,173
170,952 9,236,922 7,407,979 1,999
139,228 48,498 - 187
$ 3,977,278 $32,229,254 $28,1049542 $ 38,101
Unpaid accrued interest and subventions due to the County of Riverside
to the school districts in the amounts of $1,222,333 and $2,026,F
respectively, have been added to long-term debt. However, these amot
have not been included as expenditures for the year ended June 30, 1990.
a. Contracts Payable:
The City purchased a new fire truck on a lease -
purchase contract. E.
annual payments of $21,563 including interest at 7%, were due beginr
December 1, 1987. In exchange for improved fire protection in an
of the City which is under development, a developer has agreed
reimburse the City for the annual payments as they are paid. The C
has additional collateral for this agreement in the form of a sect
lien against all property awned by the developer and located within c
limits.
See independent auditors' report.
-14-
CITY OF LA QUDTrA
NOTES TO FINANCIAL STATEVOM
(Continued)
June 30, 1990
a. Contracts Payable (Continued):
The scheduled future payments on the fire truck contract are as follows:
Year Ended Project
June 30, Contracts
1991 $ 26,090
1992 24,581
1993 _ 23,072
73,743
Less interest (9,056)
Total $ 64,687
b. Bonds Payable:
1) Tax Allocation Bonds, Series 1989:
On January 1, 1989, the Agency issued the La Quinta Redevelopment
Project Tax Allocation Bands, Series 1989 (the 111989 Bonds") in the
amount of $8,000,000.
The bonds were issued in denominations of $5,000 or any multiple
thereof, with principal due annually September 1, beginning in 1989,
and interest payable semi-annually, on March 1, and September 1.
Interest rates range form 6.2% to 7.6%.
Bonds maturing on or after September 1, 1999 are subject to
redeniption, at the option of the Agency, as a whole or in part, on
any interest payment date, on or after September 1, 1998, at a
redemption price equal to the principal amount, plus accrued
interest, plus a premium of 1/2% to 2%.
Bonds maturing on September 1, 2012 are subject to mandatory
redemption, in part from sinking account payments on September 1,
2001 and on each September 1, thereafter, through September 1, 2012,
at a prepayment price equal to 100% of the principal amount plus
accrued interest.
The proceeds of the Bonds were used for flood control improvements.
See independent auditors' report.
-15-
CITY OF LA QUDM
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1990
5. LONCr'I'E M DEBT (CONTINUED) :
b. Bonds Payable (Continued):
1) Tax Allocation Bonds, Series 1989 (Continued):
The following is a schedule of future debt service payments for
Bonds:
Year Ending
June 30, Principal
Interest Total
1991
$ 135,000
$ 591,308
$ 726,308
1992
145,000
582,203
727,203
1993
155,000
572,186
727,186
1994
165,000
561,263
726,263
1995
180,000
549,270
729,270
1996-2013
6,895,000
6,032,135
12.927.135
Total $ 7,675,000 18,888,365 $ 16,563,365
Under terms of the issue, $735,600, the maximLun annual debt ser
amount, is to be set aside in reserve funds.
2) Tax Allocation Bonds, Series 1990:
On April 1, 1990 the Agency issued the La Quinta Redevelops
Project Tax Allocation Bonds, Series 1990 (the 111990 Bonds") in
amount of $19,695,000.
The bonds were issued in denominations of $5,000 or any mult
thereof, with principal due annually September 1, beginning in 1
and interest payable semi-annually on March 1 and Septembe=
Interest rates range from 5.8% to 6.8%.
Bonds maturing on September 1, 2005 and September 1, 2012 are sul
to redemption, at the option of the Agency, as a whole or in part
any interest payment date, on or after September 1, 2000,
redemption price equal to the principal amount, plus acc:
interest, plus a premium of 1/2% to 2%.
See independent auditors' report.
-16-
CITY OF IA QUIN A,
NOTES TO F 4ANCTAT, STATEMENTS
(Continued)
June 30, 1990
5. IONG-TERt4 D= (CONTINUED):
b. Bonds Payable (Continued):
2) Tax Allocation Bonds, Series 1990 (continued):
Bonds maturing on September 1, 2005 and September 1, 2006 are subject
to mandatory redemption, in part from sinking account payments on
September 1, 2001 and September 1, 2006, respectively, and each
September 1, thereafter, through September 1, 2005 and September 1,
2012, respectively, at a premium price equal to 100% of the principal
amount plus accrued interest.
The following is a schedule of future debt service payments for the
Bonds:
June 30,
Principal
Interest
Total
1991
$ 385,000
$ 1,335,707
$ 1,720,707
1992
405,000
1,434,835
1,839,835
1993
430,000
1,409,355
1,839,355
1994
460,000
1,381,535
1,841,535
1995
485,000
1,351,767
1,836,767
1996-2013
17,530,000
15,175,708
32,705,708
Total $ 19,695,000 �22,088,907 41,783,907
Under terms of the issue, the maximum annual debt service amount of
$1,856,900, is to be set aside in reserve funds unless the Agency
elects to maintain the reserve requirement by obtaining a letter of
credit for the amount. The Agency has obtained such a letter of
credit.
The net proceeds of the bonds, of $19,656,325 was used to provide a
portion of the funds necessary to refund the Agency's outstanding
principal amount of the La Quinta Redevelopment Project Tax
Allocation Bonds, Series 1985 (the 111985 Bonds"). This amount, in
addition to $2,321,404, was deposited into an escrow fund. Security
Pacific National Bank, as escrow agent, has agreed to establish and
maintain this escrow fund, until all principal, interest, and
premiums on the 1985 Bonds have been fully paid.
The proceeds deposited into the escrow fund were invested in
obligations of the United States government. The principal and
interest payments from these investments are anticipated to provide
funds sufficient to pay the principal of, premium, if any, and
interest on the 1985.Bands.
See independent auditors' report.
-17-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMEWS
(Continued)
June 30, 1990
b. Bonds Payable (Continued):
2) Tax Allocation Bonds, Series 1990 (Continued):
Below is a schedule of sources and uses of the refunding be
proceeds.
Sources:
Principal amount of new debt $ 19,695
Underwriter's issue premium 705
Subtotal 20,400
Interest earnings 151
Cash held by fiscal agent for 1985 Bonds 2,321
Total Sources $ 22,872
Uses:
Deposit to escrow fund - 1985 Bonds $ 21,977
Deposit to bond interest fund - 1990 Bonds 151
Issuance cost 743
Total Uses 22,872
The gain from the refunding of debt, computed as the differe
between the aggregate debt service requirements of the old issue
debt service requirements of the new issue, discounted at 7.f
interest, is as follows:
Net present value of 1985 Bonds, old issue $ 22,969
Net present value of 1990 Bonds, new issue 19,805
Gain on refunding of debt - difference in net
present value of debt service requirements 3,163
The decrease in cash flaw from debt service requirements of the
issue and debt service requirements of the new issue is as follow:
cash flow requirements of 1985 Bonds, old issue
Cash flow requirements of 1990 Bonds, new issue
Decrease in cash flaw requirement for debt service
retirements
See independent auditors' report.
$ 48,327
41 783,
6,544
-18-
CITY OF LA QUI RM
NOTES TO FINANCIAL STATIIMENIS
(Continued)
June 30, 1990
5. LONG-TERK DEBT (CONTINUED) :
c. Due to County of Riverside:
Bawd on an agreement dated November 29, 1983 between the Agency, the
City of La Quinta and the County of Riverside (County), the Agency shall
repay to the County fifty percent of tax increment received which would
have been retained by the County if the Agency did not exist. These
repayments are subordinate to certain debt service of the Agency and
exclude amounts allocated to the Agency's law irxxmie housing fund which
is included as part of the Redevelopment Project Capital Project Fund.
The repayments will begin when certain conditions of the bond indenture
agreement have been met. Unpaid balances accrue interest at 10% per
annum. The total amount payable to the County under this agreement at
June 30, 1990 is $4,306,642 including $334,331 of current year accrued
inert. This amount has been recorded in the long-term debt account
pup -
From the renaming fifty percent of tax increment revenue, the Agency
shall set aside related required amounts in the law income housing fund.
Then, the Agency will pay debt and expenditures of no more than
$3,000,000 annually and $10,000,000 total on mutually agreeable project
costs. The County is to receive the remainder of this fifty percent
share after these payments are made. No amounts are due under this
provision at June 30, 1990.
d. Notes Payable to School Districts:
1) Desert Sands Unified School District:
Based on an agreement dated June 21, 1988 between the Agency, the
City of La Quinta and the Desert Sands Unified School District
(District), the Agency shall identify all tax increment revenue
reeved by the Agency that the District would have received in the
absence of a redevelopment plan. This tax increment will then to be
paid to the District over a payment schedule from June 29, 1988 to
July 1, 1998 in amounts ranging from $21,505 to $547,505 for a total
amount of $4,132,020. Or, alternatively, such tax increment revenues
plus interest accrued required by this agreement may be retained by
the Agency to pay on behalf of the District principal and interest on
loans, construction projects or money advanced to finance a sports
c=plex and related amenities as specified by the District. The
District's allocable share of tax increment from the County for the
fiscal year ended June 30, 1990 totaled $1,377,025.
See independent auditors' report.
-19-
NOTES TO F WCIAL STATEMENTS
(Continued)
June 30, 1990
5. IONG-TERM DEBT (CONTINUED) :
d. Notes Payable to School Districts (Continued):
2) Coachella Valley Unified School Districts:
An agreeanent dated January 25, 1984 between the Agency, the City
La Quinta and the Coachella Valley Unified School District (Distric
Provides for the payment to the District of tax increment rever
that the District would have received in the absence of
redevelopment plan, less 20% for the low and moderate income hour:
set -aside and less 3% for administrative costs. Such payment
subordinated to other indebtedness of the Agency incurred
furtherance of the Redevelopment Plan. The District agrees to i
such funds to provide classroom and other construction costs, s=
acquisition, school busses or expansion or rehabilitation of currc
facilities. The Agency paid the District $350,000 during the fis(
year ended June 30, 1990. Alternatively, the District may direct -
Agency to retain such funds to be used for the purposes descril
above. The cumulative amount to be set aside under this agreement
June 30, 1990 is $1,546,671, which is reported as a long-term debt
the City.
e. Advances to Other Funds:
The City of La Quinta periodically makes operating advances to t
Agency. Outstanding advances from the City to the Agency we
$1,999,895 at June 30, 1990.
f. Compensated Absences Payable:
There is no fixed payment schedule to pay the liability of $187,726 i
=pensated absences.
Pled ed Tax Revenues
All tax revenues received by the Agency other than the amount required
law to be deposited in a low income housing fund, are required to
deposited in a Special Fund to be used to meet debt service requirements
the bond indentures before any payments may be made on other obligations
the Agency.
See independent auditors' report.
-20-