FA Financial Statements 07.01.1994 - 06.30.1995LA QUINTA
FINANCING AUTHORITY
I Financial Statements
I Year Ended June 30, 1995
(With Independent Auditors' Report Thereon)
T CERTIFIED PUBLIC ACCOUNTANTS
LA QUINTA
FINANCING AUTHORITY
Financial Statements
Year Ended June 30, 1995
(With Independent Auditors' Report Thereon)
LA QUINTA FINANCING AUTHORITY
Financial Statements
Year Ended June 30, 1995
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
Paee
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, L.L.P.
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
Board of Directors
La Quinta Financing Authority
La Quinta, California
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
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, 1995, 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 and
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of the La Quinta Financing Authority (a component unit of
the City of La Quinta) at June 30, 1995, and the results of its operations for the year then
ended, in conformity with generally accepted accounting principles.
August 18, 1995
GviNiEq e'A5d f•Q L. L.P
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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, 1995
Assets
Lease receivable (note 3)
Amount to be provided for
retirement of general
long-term debt
Total assets
Liabilities and Fund Balance
Liabilities:
Revenue bonds payable
(note 4)
Deferred revenue
Total liabilities
Fund balances:
Fund balance
Total fund balances
Total liabilities and
fund balances
Governmental
Fund Type Account Group
Totals
Debt General Long- (Memorandum
Service Term Debt Only)
$8,360,000 - 8,360,000
.1 111 .1 111
.1 Ill .1 rli . ! Ili
8,360,000 8,360,000
MUM a,360,000
.! #!! 8,360rir 16,720,000
See accompanying notes to the 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, 1995
Revenues:
Lease revenue (including excess funds held by
City credited toward lease payment) $699,477
Total revenues 699,477
Expenditures:
Debt service:
Principal 155,000
Interest 544.477
Total expenditures 699.477
Excess (deficiency) of revenues over
(under) expenditures -
Fund balances at beginning of year -
Fund balances at end of year
See accompanying notes to the financial statements.
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LA QUINTA FINANCING AUTHORITY
Notes to Financial Statements
Year Ended June 30, 1995
(1) 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
groups 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 Lone -Term Debt Account_ Group - 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.
(d) Lease Revenue
Amounts presented as lease revenue in the accompanying financial statements
include cash payments from the City of La Quinta as well as any credits toward
the City's payment due to capitalized interest or interest earnings on reserve
accounts held by the City.
(e) Memorandum Only Totals
Columns in the accompanying financial statements captioned "Totals
(Memorandum Only)" are not necessary for a fair presentation of the financial
statements in accordance with generally accepted accounting principles, but are
presented as additional analytical data. Interfund balances and transactions have
not been eliminated. Therefore, the data in this column does not represent
consolidated financial information.
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LA QUINTA FINANCING AUTHORITY
Notes to Financial Statements
(Continued)
(2) Description of Reporting 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 general purpose financial
statements of the City of La Quinta.
(3) Lease Receivable
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) General Long: Term Debt
Changes in general long-term debt for the year ended June 30, 1995 were as follows:
Balance at
July 1. 1994
Local agency revenue bonds,
series 1991 $8.515.000
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Balance at
Additions Deletions June 30. 1995
LA QUINTA FINANCING AUTHORITY
Notes to Financial Statements
(Continued)
(5) Local Agency Revenue Bond. Series 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 were used for the construction of the La Quinta City Hall
complex.
The bonds were issued in denominations of $5,000 and multiples thereof, with the
principal due annually on October 1, and interest payable semi-annually on April 1 and
October 1. Interest rates range from 5.25 to 6.2% per annum.
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
1995-96
$ 160,000
536,403
696,403
1996-97
170,000
527,570
697,570
1997-98
180,000
517,987
697,987
1998-99
190,000
507,623
697,623
1999-00
200,000
496,408
696,408
2000-01
210,000
484,413
694,413
2001-02
225,000
471,468
696,468
2002-03
240,000
457,398
697,398
2003-04
250,000
442,327
692,327
2004-05
265,000
425,766
690,766
2005-06
285,000
407,479
692,479
2006-07
305,000
387,861
692,861
2007-08
325,000
366,914
691,914
2008-09
345,000
344,636
689,636
2009-10
370,000
320,862
690,862
2010-11
395,000
295,426
690,426
2011-12
420,000
268,327
688,327
2012-13
445,000
239,566
684,566
2013-14
475,000
208,976
683,976
2014-15
510,000
176,225
686,225
2015-16
540,000
141,312
681,312
2016-17
580,000
104,073
684,073
2017-18
615,000
64,339
679,339
2018-19
660,000
21,945
681,945
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 $714,495 was set aside on June 30, 1995. The amount
of Local Agency Revenue Bonds outstanding at June 30, 1995 was $8,360,000.
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