FA Financial Statements 07.01.1991 - 06.30.1992LA QUINTA
FINANCING AUTHORITY
Financial Statements
Year Ended June 30, 1992
(With Independent Auditors' Report)
LA QUINTA FINANCING AUTHORITY
Financial Statements
Year Ended June 30, 1992
TABLE OF CONTENTS
Independent Auditors' Report
Balance Sheet — Debt Service Fund
and Account Group
Statement of Revenues, Expenditures and
Changes in Fund Balances — Debt Service Fund
Notes to Financial Statements
Page
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`SSS QIATES
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
Board of Directors
La Quinta Financing Authority
La Quinta, California
Independent Auditcr�' Report
CERTIFIED PUBLIC ACCOUNTANTS
1100 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92714
(714) 474-2020
We have audited the financial statements of the La Quinta Financing Authority (a component
unit of the City of La Quinta) as of and for the year ended June 30, 1992, as listed in the
table of contents. These financial statements are the responsibility of the management of
the City of La Quinta, California. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of the La Quinta Financing Authority (a component unit of
the City of La Quinta) at June 30, 1992, and the results of its operations for the year then
ended, in conformity with generally accepted accounting principles.
4r -a G%►7,te
September 4, 1992
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MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
LA QUINTA FINANCING AUTHORITY
Balance Sheet -
Debt Service Fund and Account Group
June 30, 1992
Governmental
__Fund Type Account Group
Totals
Debt General Long- (Memorandum
Service _ Term Debt Only)
Assets
Lease receivable (note 3) $8,515,000 - 8,515,000
Amount to be provided for
retirement of general
long-term debt - 8,515,000 8,515,000
Total assets�15000 .515.000 7.030.000_
Liabilities and Fund Balances
Liabilities:
Revenue bonds payable
(note 4) $ - 8,515,000 8,515,000
Deferred revenue 8,515,000 - 8,515,000
Total liabilities 8.515,000 8,51S,000 17,030000
Fund balances:
Fund balance
Total fund balances
Total liabilities and
fund balances X8.515.000 $ 54.1.E 0� 17.030.000
See accompanying notes to financial statements.
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LA QUINTA FINANCING AUTHORITY
Statement of Revenues, Expenditures and
Changes in Fund Balances - Debt Service Fund
Year Ended June 30, 1992
Revenues:
Lease revenue
Total revenues
Expenditures:
Debt service:
Interest
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources (uses):
Proceeds from Lease Revenue Refunding Bonds
Transfer to City of La Quinta
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
and other financing uses
Fund balances at beginning of year
Fund balances at end of year
See accompanying notes to financial statements.
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Debt
Service
$
—111,784
182,784
182.784
182.784
8,515,000
(a.515,000)
LA QUINTA FINANCING AUTHORITY
Notes to Financial Statements
June 30, 1992
I) Summary of Significant Accounting Policies
(a) Basis of Accounting
The financial statements of the La Quinta Financing Authority ("Authority") have
been prepared on the modified accrual basis. Revenues are recognized when they
become measurable and available. Expenditures are recorded when a related
liability is incurred, except that prepaid expenses are not recorded, and interest
and principal on tax allocation revenue bonds and transfers to the City of
La Quinta are recorded as expenditures when due.
(b) Fund Accounting
The accounts of the Authority are organized on the basis of funds and account
group as follows:
Debt Service Fund — this fund is used to account for the accumulation and holding
of resources for, and the payment of, principal and interest when due. Revenue
sources are loan repayments and bond proceeds.
General L n —Term Debt Account Groia12 — used to account for the outstanding
principal of long—term debt.
(c) Budgetary Data
Annual budgets of the corporate revenues and expenditures are not applicable to
the Authority. This is due to the legal structure of the bond indentures, which
specifically directs the timing and amounts of receipts and disbursements.
(2) Description_yf__Rgporting Entity
The La Quinta Financing Authority is a joint exercise of powers authority created by a
joint powers agreement between the City of La Quinta and the La Quinta
Redevelopment Agency, dated November 19, 1991. The purpose of the Authority is to
provide, through the issuance of debt, financing necessary for the construction of
various public improvements.
The Authority is an integral part of the City of La Quinta and the financial
transactions of the Authority are also included in the comprehensive annual financial
report of the City of La Quinta.
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LA QUINTA FINANCING AUTHORITY
Notes to Financial Statements
(Continued)
(3) Lease Reggivable
On November 19, 1991, the Authority leased from the City the land that is to be used
as the site for the future City Hall facility. Under the terms of the operating lease, an
advance rent of one dollar was paid at the inception of the lease as full consideration
for the Authority's use of the land for the term of the operating lease which ends on
October 8, 2028, unless terminated earlier as provided in the lease agreement. The
City retains title to the land during the term of the lease.
On November 19, 1991, the Authority entered into a sublease agreement to lease the
land along with the City Hall improvements ("the Project") back to the City. The lease
payments to be received by the Authority from the City are equal to the Authority's
semi-annual debt service payment required on the $8,515,000 of 1991 Local Agency
Revenue Bonds, the proceeds of which will be used to construct the City Hall facility.
The term of the sublease began on December 5, 1991, and ends on September 30, 2028,
unless terminated earlier as provided in the sublease agreement.
The sublease provides that upon payment by the City of all required lease payments,
title to the City Hall improvements is transferred to the City. Accordingly, the
Authority's sublease of the Project to the City is accounted for as a capital lease and
the project assets have been transferred to the City. Upon transfer of the Project to
the City, the Authority recorded a lease receivable and related deferred revenue to
account for its interest in lease payments to be received from the City.
(4) Local Agency Revenue Bond, bSeries 1991
On December 1, 1991, the Financing Authority issued the La Quinta Financing
Authority Local Agency Revenue Bonds, Series 1991 (City Hall Project) in the amount
of $8,515,000. The proceeds are to provide the funds to finance the cost of
constructing the La Quinta City Hall project.
The bonds were issued in denominations of $5,000 and multiples thereof, with the
principal due annually on October 1, beginning in 1994, and interest payable
semi-annually on April 1 and October 1. Interest rates range from 5.8 to 6.2% per
annum.
The Bonds maturing on or before October 1, 2000 are subject to redemption, at the
option of the Agency, as a whole or in part, on any interest payment date, on or after
October 1, 2000, at a redemption price equal to the principal amount, plus accrued
interest, plus a premium of 1/2 to 2%.
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LA QUINTA FINANCING AUTHORITY
Notes to Financial Statements
(Continued)
4 Local Agency Revenue Bond Series 19-9-1._(Continued)
Bonds maturing on October 1, 2018, are subject to mandatory redemption from sinking
account payments on October 1, 2004, and each October 1, thereafter, through
October 1, 2018, 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:
Year Ending
June 30
Principal
Interest
Total
1992-93
$
502,656
502,656
1993-94
-
548,352
548,352
1994-95
155,000
544,478
699,478
1995-96
160,000
536,402
696,402
1996-97
170,000
527,570
697,570
1997-2019
8.030.000
7,151,332
15,181,332
$,J._,9
810.790
18.325.790
Under terms of the issue, a minimum of $704,718 is to be set aside in reserve funds
held by the City. A total of $718,028 was set aside on June 30, 1992.
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