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2004 12 21 FA�/� • F 5 c� OF FINANCING AUTHORITY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting Tuesday, December 21, 2004 - 3:00 P.M. Beginning Resolution No. FA 2004-004 CALL TO ORDER Roll Call: Board Members: Henderson, Osborne, Perkins, Sniff, and Chairman Adolph PUBLIC COMMENT At this time members of the public may address the Financing Authority on items that appear within the Consent Calendar or matters that are not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. When you are called to speak, please come forward and state your name for the record. Please watch the timing device on the podium. For all Business Session matters or Public Hearings on the agenda, a completed "request to speak" form should be filed with the City Clerk prior to beginning consideration of that item. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF NOVEMBER 16, 2004. Financing Authority Agenda 1 December 21, 2004 CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. TRANSMITTAL OF TREASURER'S REPORT DATED OCTOBER 31, 2004. 2. TRANSMITTAL OF REVENUE & EXPENDITURES REPORT DATED OCTOBER 31, 2004. 3. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA FINANCING AUTHORITY 1996 LEASE REVENUE REFUNDING BONDS AND 2004 LOCAL AGENCY REVENUE BONDS FOR FISCAL YEAR ENDING JUNE 30, 2004. BUSINESS SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS ADJOURNMENT Adjourn to a regularly scheduled meeting of the Financing Authority to be held on January 18, 2005 at 3:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Financing Authority meeting of Tuesday, December 21, 2004, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on Friday, December 17, 2004. DATED: December 17, 2004 JUNE S. GREEK, CMC, City Clerk City of La Quinta, California Financing Authority Agenda 2 December 21, 2004 p.S, Iry OF AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 21, 2004 ITEM TITLE: Transmittal of Treasurer's Report dated October 31, 2004 RECOMMENDATION: It is recommended the La Quinta Financing Authority: Receive and file. BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA a, C6 4 OF 'fK� AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 21, 2004 BUSINESS SESSION: ITEM TITLE: Transmittal of Revenue and Expenditure Report dated October 31, 2004 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Receive and File. BACKGROUND AND OVERVIEW: Transmittal of the October 31, 2004 Statement of Revenue and Expenditures for the La Quinta Financing Authority. Respectfully submitted, YaJohnM. Falc ner, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director Attachments: 1. Revenue and Expenditures, October 31, 2004 ATTACHMENT 1 LA QUINTA FINANCING AUTHORITY REVENUE DETAIL DEBT SERVICE REVENUE: Contractual Services Fees Non Allocated Interest Rental Income Transfer In TOTAL DEBT SERVICE CAPITAL IMPROVEMENT REVENUE: Pooled Cash Allocated Interest Non Allocated Interest TOTAL CIP REVENUE TOTAL FINANCING AUTHORITY REMAINING BUDGET RECEIVED BUDGET 10,000.00 0.00 10,000.00 0.00 15.55 (15.55) 681,200.00 501,890.00 179,310.00 2,990,049.00 766,045.53 2,224,003.47 3,681,249.00 1,267,951.08 2,413,297.92 0.00 0.00 0.00 0.00 35.00 (35.80) 0.00 35.80 (35.80) 3,681,249.00 1,267,986.88 2,413,262.12 LA QUINTA FINANCING AUTHORITY 07/01/2004 - 9130104 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET DEBT SERVICE EXPENDITURES SERVICES 9,686.00 1,951.00 0.00 7,735.00 BOND PRINCIPAL 315,000.00 315,000.00 0.00 0.00 BOND INTEREST 3,356,269.00 952,935.53 0.00 2,403,333.47 TRANSFER OUT 0.00 0.00 0.00 0.00 TOTAL DEBT SERVICE 3,680,955.00 1,269,886.53 0.00 2,411,068.47 CAPITAL IMPROVEMENT EXPENDITURES BOND ISSUANCE COSTS 55,000.00 49,997.09 0.00 5,002.91 TRANSFER OUT 0.00 0.00 0.00 0.00 TOTAL CAPITAL IMPROVEMENT 55,000.00 49,997.09 0.00 5,002.91 TOTAL FINANCING AUTHORITY 3,735,955.00 1,319,883.62 0.00 2,416,071.38 COUNCIL/RDA MEETING DATE: December 21, 2004 ITEM TITLE: Approval of Annual Continuing Disclosure for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local Agency Revenue Bonds for Fiscal Year End June 30, 2004 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve, receive and file the Annual Continuing Disclosure for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 Local Agency Revenue Bonds for Fiscal Year End June 30, 2004. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On November 10, 1994, the Securities and Exchange Commission adopted amendments to existing federal regulations (Rule 15c2-12) for bonds issued after July 3, 1995, requiring issuers of municipal securities (Bond issues) to do the following annually for each bond issue: 1. Prepare official statements meeting the content requirement of Rule 15c2-12; 2. File certain financial information and operating data with national and state repositories each year; and 3. Prepare announcements of the significant events including payment defaults, defeasances and draws on a reserve fund as the events occur. Attachment 1 is the 2003/04 Annual Continuing Disclosure Statement for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds prepared in accordance with the three aforementioned requirements. Additionally, no announcement of significant events was necessary for Fiscal Year 2003/04. FINDINGS AND ALTERNATIVES: The alternatives available to the Financing Authority include: 1. Approve, receive and file the Annual Continuing Disclosure for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 for Fiscal Year End June 30, 2004; or 2. Do not approve, receive and file the Annual Continuing Disclosure for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and 2004 for Fiscal Year End June 30, 2004; or 3. Provide staff with alternative direction. Respectfully submitted, ohn M. Falconel, Finance Directof Approved for submission by: Thomas P. Genovese, Executive Director Attachment: 1. 2003/04 Annual Continuing Disclosure Statement for the La Quinta Financing Authority 2 LA QUINTA FINANCING AUTHORITY $8, 790, 0001996 LEASE REVENUE REFUNDING BONDS (LA QUINTA CITY HALL PROJECT) Riverside County, California Dated: November 15, 1996 CUSIP: 50419R 2004 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT As of November, 2004 Also available at: AMMuniFinancial www.muni.com LIST OF PARTICIPANTS CITY, OF LA QUINTA w .1a1-QvMta,©r John Falconer Finance Director P.O. Box 1504 78495 Calle Tampico La Quinta, California 92247 (619) 777-7150 Miller & Schroeder Financial, Inc. eoNa COUNSEL. Rutan & Tucker, LLP Costa Mesa, California FISCAL AGENT Brad Scarbrough U.S. Bank Trust, N.A. 633 West 5t' Street, 24t' Floor Los Angeles, California 90071 (213) 615-6047 * In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy, completeness or fairness of the statements contained herein. 4 L INTRODUCTION Pursuant to an Official Statement dated November 13, 1996 the La Quinta Financing Authority (the "Authority") issued $8,790,000 1996 Lease Revenue Refunding Bonds (La Quinta City Hall Project), (the "Bonds") to refinance the Authority's previously issued Local Agency Revenue Bonds, Series 1991 (City Hall Project). The City of La Quinta, (the "City") which comprises approximately 34.8 square miles, is located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los Angeles. The Bonds are payable solely from the lease payments relating. to the La Quinta City Hall Project, and amounts held in certain funds and accounts established under a trust agreement. The City has covenanted to provide for the lease payments in its annual budget and to make the necessary appropriation for such payments. However, the Bonds and the obligation of the City to make lease payments does not constitute an obligation for which the City is obligated to. levy or pledge any form of taxation. Neither the Bonds nor the obligation of the City to make lease payments constitutes an indebtedness of the City, the State of California or any political subdivisions thereof within the meaning of any constitutional or statutory debt limit or restriction. This Annual. Information Statement is being provided pursuant to a covenant made by the City and the Authority for the benefit of the holders of the Bonds and includes the information specified in a Continuing Disclosure Certificate. For further information and a more complete description of the City, the Authority and the Bonds, reference is made to the Official Statement. The information set forth herein has been furnished by the Authority and the City and by sources, which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness. Statements contained in this Annual Information Statement which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to change without notice and the delivery of this Annual Information Statement will not, under any circumstances, create any implication that there has been no change in the affairs of the Authority and the City or any other parties described herein. 2003104 - 1996 Lease Rev City of La Quinta 5 ll. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of November 12, 2004 1996 Lease Revenue Bonds $6,575,000 B. FUND BALANCES Fund As of November 12, 2004 Reserve Fund (1) N/A (1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the MBIA Insurance Corporation. Ill. FINANCIAL INFORMATION The audited financial statements for the City for the Fiscal Year Ended June 30, 2004 will be separately filed with the Nationally Recognized Municipal Securities Information Repositories and are hereby 'incorporated by reference into this Annual Information Statement. IV. OPERATING INFORMATION A. GENERAL FUND EXPENDITURES BY FUNCTION Fiscal Year Ending General Public Public Community Planning & Capital June 30 Government Safety Works Service Development Projects Total 1992 $1,921,155 $2,155,813 $618,612 $157,897 $904,171 $11,813 $5,769,461 1993 1,807,205 2,393,202 600,253 146,686 884,537 0 5,831,883 1994 2,359,673 2,786,575 673,144 119,265 511,416 0 6,450,073 1995 1,565,265 3,143, 697 576,304 199,115 538,610 282,113 6,305,104 1996 1,793,301 3,227,438 813,352 413,142 453,656 201,475 6,902,364 1997 2,376,935 3,442,056 889,694 469,110 455,563 170,000 7,803,358 1998 2,229,389 4,099,523 1,159,372 494,402 345,054 0 8,327,740 1999 2,473,241 4,468,294 1,546,650 732,741 626,074 0 9,847,000 2000 2,814,604 4,992,811 1,704,996 768,528 748,949 0 11,029,888 2001 3,063,641 5,636,154 1,417,528 817,460 733,579 0 11,668,362 2002 2,954,060 7,609,121 1,536,033 1,014,474 726,589 0 13,840,277 2003 3,140,576 8,202,407 2,311,436 991,558 674,450 0 15,320,427 2004 3,892,220 9,672,180 3,130,794 1,025,397 750,444 0 18,444,035 2003104 - 1996 Lease Rev City of La Quinta N. B. GENERAL FUND REVENUE BY SOURCE Fiscal Year Ending June 30 Taxes Licenses and Permits Inter- Governmental Charges for Services Litigation Settlement Proceeds Interest Miscellaneous Total 1992 $3,135,044 $576,293 $930,503 $488,015 (1) $261,380 $120,867 $5,512,102 1993 3,581,830 622,107 1,157,587 384,000 (1) 238,321 219,641 6,203,486 1994 4,212,604 777,241 1,600,032 469,695 (1) 585,264 1,042,872 8,687,708 1995 4,946,304 902,914 747,784 551,727 $477,872 718,310 137,028 8,481,939 1996 5,393,456 998,030 815,980 610,873 12,386 905,420 230,705 8,966,850 1997 5,942,698 793,689 1,072,803 976,897 40,593 941,327 22,712 9,790,719 1998 6,764,355 1,144,562 1,110,553 1,228,269 281,382 1,164,145 114,969 11,808,235 1999 8,101,191 1,951,981 1,466,788 1,965,219 740,985 1,569,796 74,529 15,870,489 2000 8,888,825 2,493,360 2,388,749 1,922,097 0 1,868,073 106,371 17,667,475 2001 10,331,970 2,057,423 2,164,891 1,998,589 0 2,513,789 43,545 19,110,207 2002 10,443,436 1,857,691 3,683,490 1,757,744 0 2,030,346 529,190 20,301,897 2003 11,572,985 1,982,127 4,394,045 2,302,759 0 1,894,03 87,240 22,233,459 2004 13,184,050 3,096,145 4,895,986 2,619,578 0 2,335,154 109,338 26,240,301 (1) 1995 was the first year Litigation Settlement Proceeds was identified as a revenue source C. PROPERTY TAX LEVIES AND COLLECTIONS Fiscal Year Total Current Percent Delinquent Total Ending Tax Tax of Levy Tax Collections June 30 Levy Collection Collected Collections to Tax Levy 1992 $282,201 $260,365 92.3% $25,703 101.4% 1993 282,630 244,731 86.6% 14,824 91.8% 1994 288,407 275,752 95.6% 900 95.9% 1995 549,273 487,043 88.7% 786 88.8% 1996 670,398 643,309 96.0% 2,312 96.3% 1997 824,073 760,350 92.3% 0 92.3% 1998 886,175 980,838 110.7% 0 110.7% 1999 991,1001 1,148, 040 115.8 % 0 115.8% 2000 1,001,074 1,005,983 100.5% 0 100.5% 2001 1,071,723 1,091,128 101.8% 0 101.8% 2002 1,218,823 1,409,828 115.7% 0 115.7% 2003 1,432,528 1,437,908 100.4% 0 100.4% 2004 1,724,861 1,767,764 102.5% 0 102.5% Note 1. Proposition 13 limits cities to levying a tax rate for bonded indebtedness only after 1978. 2. Levies and collections are for General Fund only excluding no -low and supplemental property taxes. Source: County of Riverside 2003104 - 1996 Lease Rev City of La Quinta 7 D. SCHEDULE OF NET TAXABLE VALUE Fiscal Year Ending June 30 Secured Property Unsecured Property Assessed Property Value Less Property Exemptions Less Homeowner's Exemptions Net Taxable Value 1992 $1,594,767,374 $6,396,816 $1,601,164,190 $3,605,829 $1,597,558,361 1993 1,773,323,102 6,943,559 1,780,266,661 3,814,434 1,776,452,227 1994 1,872,768,156 8,119,527 1,880,887,683 3,946,378 $18,901,202 1,858,040,103 1995 1,927,834,908 22,822,285 1,950,657,193 4,357,954 20,518,400 1,925,780,839 1996 2,043,276,054 23,801,872 2,067,077,926 6,936,774 22,399,068 2,037,742,048 1997 2,164,204,951 22,511,720 2,186,716,671 6,919,376 22,407,418 2,157,389,877 1998 2,305,593,987 18,844,880 2,324,438,867 9,676,787 24,877,018 2,289,885,062 1999 2,674,887,437 18,756,736 2,693,644,173 10,998,340 27,581,722 2,655,064,111 2000 2,665,520,656 18,712,736 2,684,233,392 11,655,584 28,259,200 2,644,318,608 2001 3,162,945,116 30,599,753 3,193,544,869 19,757,668 30,391,400 3,143,395,801 2002 3,789,678,041 32,607,713 3,822,285,754 20,732,503 33,993,800 3,767,559,451 2003 5,412,382,710 40,940,877 5,453,323,587 50,878,475 44,541,600 5,357,903,512 2004 6,289,493,552 44,014,548 6,333,508,100 67,025,403 46,011,600 6,220,471,097 (1) Homeowner's exemption not available Source: County of Riverside E. PROPERTY TAX RATE - DIRECT AND OVERLAPPING GOVERNMENTS (Per $100 of Assessed Value) 1999/00 2000/01 2001 /02 2002/03 2003/04 General 1.00000 1.00000 1.00000 1.00000 1.00000 County of Riverside - - 0.00985 0.00938 0.00905 Riverside County Office of Education - - 0.00985 0.00938 0.00905 Desert Sands Unified 0.09750 0.09750 0.35177 0.46088 0.27443 Coachella Valley Unified School District - - 0.05022 0.06845 0.09267 Coachella Valley Water District 0.02080 0.02080 0.56885 0.62057 0.55458 Coachella Valley Recreation & Park District - - - 0.07856 0.07762 Total Tax Rate 1.11830 1.11830 1.99054 2.24722 2.01740 Source: County of Riverside F. SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Year Ended June 30 Special Assessment Billings Special Assessment Collections ��� Ratio of Collections to Billings 1992 $557,574 $552,249 99.0% 1993 559,029 548,291 98.0% 1994 766,011 734,560 95.9% 1995 836,502 737,700 88.2% 1996 729,647 699,351 95.9% 1997 791,012 757,256 95.7% 1998 791,012 761,109 96.2% 1999 790,532 770,164 97.4% 2000 833,630 800,825 96.0% 2001 835,577 803,756 96.2% 2002 1,068,994 992,226 92.8% 2003 860,684 790,555 91.9% 2004 871,833 804,818 92.3% (1) Includes Prepayments and Foreclosures Source: Riverside County Assessor's Office as compiled by Muni Financial. 2003104 -1996 Lease Rev City of La Quinfa 8 G. SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT Percent June 30, 2004 Direct and Overlapping Bonded Debt Applicable Bonded Debt Riverside County General Fund Obligations 0.905% $5,910,417 Riverside County Board of Education Certificates of Participation 0.905% 119,098 Desert Sands Unified School District Certificates of Participation 7.733% 1,199,388 Desert Sands Unified School District Lease Tax Obligation 7.733% 1,939,050 Desert Sands Unified School District Community Facilities District No. 1 100.000% 2,155,000 Desert Sands Unified School District 7.733% 4,794,460 Coachella Valley County Water District, I.D. #71 Storm Water Unit 6.298% 660,345 Certificates of Participation Coachella Valley County Water District, I.D. #55 66.678% 5,087,531 Coachella Valley County Water District, I.D. #58 4.216% 191,406 Coachella Valley Unified School District Certificates of Participation 9.267% 1,760,730 Coachella Valley Unified School District 9.267% 1,690,234 Coachella Valley Water District, AD #68 86.247% 2,160,487 Coachella Valley Recreation and Park District Certificates of Participation 7.762% 210,350 City of La Quinta General Fund Obligation (Finance Authority) 100.000% 6,890,000 City of La Quinta 1915 Act Bonds 100.000% 3,735,000 Total Direct and Overlapping Bonded Debt $38,503,496 � (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non - bonded capital lease obligations. Source: California Municipal Statistics, Inc. H. , COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2004) Net Assessed Valuation $6,220,471,097 Debt Limit - 15 % of Assessed Valuation 933,070,665 Amount of Debt Applicable to Debt Limit 0 Legal Debt Margin $933,070,665 Notes: Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. The City of La Quinta has no general bonded indebtedness. 2003104 —1996 Lease Rev City of La Quinta REVENUE BOND COVERAGE Local Agency Revenue Bonds (City Hall Project) Fiscal Year Ending June 30 Revenue Available for Debt Service Debt Service Requirements Principal Interest Total Coverage 1992 $182,784 $0 $182,784 $182,784 1.00 1993 548,352 0 548,352 548,352 1.00 1994 548,352 0 548,352 548,352 1.00 1995 699,477 155,000 544,477 699,477 1.00 1996 696,402 160,000 536,402 696,402 1.00 1997 607,950 170,000 437,950 607,950 1.00 1998 734,623 285,000 449,623 734,623 1.00 1999 684,573 245,000 439,573 684,573 1.00 2000 679,670 250,000 429,670 679,670 1.00 2001 678,955 260,000 418,955 678,955 1.00 2002 682,178 275,000 407,178 682,178 1.00 2003 679,435 285,000 394,435 679,435 1.00 2004 680,830 300,000 380,830 680,830 1.00 Note: Revenue available consists of lease payments made by the City of La Quinta to the La Quinta Financing Authority. J. DEMOGRAPHIC STATISTICS Total Population Riverside Fiscal Year Square Percent County City Population Ending Miles Population Change Population (1) Percent of County 1992 28.0 14,727 12.7% 1,281,000 1.1% 1993 28.2 15,589 5.9% 1,323,500 1.2% 1994 28.2 16,680 7.0% 1,357,400 1.2% 1995 31.2 17,591 5.5% 1,393,500 1.3% 1996 31.2 18,050 2.6% 1,381,879 1.3% 1997 31.2 18,931 4.9% 1,379,956 1.4% 1998 31.2 20,444 8.0% 1,441,237 1.4% 1999 31.2 21,763 6.5% 1,473,307 2.2% 2000 31.2 24,240 10.8%, 1,522,900 1.6% 2001 31.2 26,321 8.6% 1,545,387 1.7% 2002 31.8 28,715 9.1% 1,545,387 1.9% 2003 34.8 30,452 6.0% 1,653,564 1.8% 2004 35.1 32,522 6.8% 1,782,650 1.8% Source: (1) State of California Department of Finance 2003104 -1996 Lease Rev City of La Quinta 10 K. PROPERTY VALUE AND CONSTRUCTION ACTIVITIES Fiscal Year Commercial Construction Residential Construction Ending Properw June 30 Value's Units Value Units Value 1992 $1,594,767,374 12 $7,334,871 320 $35,744,443 1993 1,773,323,102 7 2,441,392 324 39,145,539 1994 1,872,768,156 13 6,081,796 531" 79,318,969 1995 1,927,834,908 4 1,100,119 238 29,163,494 1996 2,043,276,054 8 1,018,940 336 53,973,239 1997 2,164,204,951 11 1,876,747 322 36,971,047 1998 2,305,593,987 14 2,689,642 461 70,403,691 1999 2,674,887,437 19 8,894,767 770 132,521,054 2000 2,665,520,656 40 13,071,684 1,590 292,524,629 2001 3,162,945,116 39 15,289,134 1,069 195,774,186 2002 3,789,678,041 66 6,739,720 858 171,189,651 2003 5,412,382,710 69 27,184,625 831 176,514,682 2004 6,289,493,552 154 38,232,129 1,406 244,446,101 (1) From Schedule of Net Taxable Value L. PRINCIPAL TAXPAYERS (JUNE 3012004) Taxuaver TVpe of Activi KSL La Quinta Hotel Corp. Hotel KSL PGA West Corporation Residences Sunrise Desert Partners Condominiums KSL Landmark Corporation Vacant Land KSL Land Corporation Residential Land KSL La Quinta Corporation Golf Courses TD Desert Development Residential Land La Quinta Golf Properties, Inc. Golf Courses M & H Realty Partnership Shopping Centers Washington Adams Partnership Commercial M. MAJOR EMPLOYERS (JUNE 309 2004) Employer Employees Activi La Quinta Hotel and Golf Resort 1,500 Resort Hotel PGA West 1,100 Golf Resort Desert Sands Unified School District 550 School District Administration Wal-Mart 250 Retailer Rancho La Quinta 200 Golf Resort Home Depot 180 Retailer Lowes Home Improvement 150 Retailer Stater Brothers 126 Groceries Imperial Irrigation District 110 Utility Company Vons 103 Groceries Ralphs 100 Groceries Tradition 97 Golf Resort City of La Quinta 76 Municipal Government Cliff House 75 Restaurant 2003104 — 1996 Lease Rev City of La Quinta 11 N. SCHEDULE OF INSURANCE IN FORCE (JUNE 3012004) Company Policy Name Number Coverage Limits Term Premium Hartford PEBA07068 Employee Dishonesty, $1,000,000 12/03/03 — 04 $3,000 Forgery, Computer Fraud Lexington 7818689 All Risk Property Insurance 29,683,900 07/01/04 — 05 27,135 Including Auto Physical Damage (Excluding Earthquake) Landmark Amer K2HQ407478 Earthquake & Flood, Real & 7,500,000 02/07/04 —05 32,510 Personal Property Including Contingent Tax Interruption Califomia Certificate #5 Comprehensive General Liability $0 Deductible 07/01/04 — 05 272,578 Joint Powers Retention Insurance Authority $50 Million California Certificate Worker's Compensation 5,000,000 07/01/04 — 05 240,955 Joint Powers #5009-056 Insurance Authority O. MISCELLANEOUS STATISTICAL DATA (JUNE 3012004) Date of Incorporation May 2, 1982 Type of City Charter City Form of Govemment Council / Manager City Employees 78 City Land Area (square miles). 35.1 Population 32,522 Number of Parks 12 Total Acreage 211 Miles of Streets 118.0 Miles of Bike Paths 9.7 Number of Major Intersections 45 Number of Traffic Signals and Safety Lighting 42 Number of Traffic Signs 2,712 Number of Street Lights 84 Public Schools 4 Private Schools 1 Churches 3 Banks / Savings and Loan 7 Number of Single Family Units - Detached 13,164 Number of Single Family Units - Attached 2,360 Number of Multiple Family Units 1,071 Number of Mobile Homes 259 20031104 —1996 Lease Rev City of La Quinta 12 LA QUINTA FINANCING AUTHORITY $90,000,000 LOCAL AGENCY REVENUE BONDS 2004 SERIES A Riverside County, California Dated: June 29, 2004 CUSIP: 50420A 2004 ANNUAL CONTINUING DISCLOSURE -INFORMATION STATEMENT As of December_., 2004 Also available at: MuniFinancial www.muni.com 13 LIST OF PARTICIPANTS W.18 Cinim O.M. John Falconer Finance Director P.O. Box 1504 78-495 Calle Tampico La Quinta, California 92247 (760) 777-7150 DISCLOSURE CONSULTANT & D19SEMINATION AGENT Stone & Youngberg * In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy, completeness or fairness of the statements contained herein. `L1 L INTRODUCTION Pursuant to an Official Statement dated June 21, 2004, the La Quinta Financing Authority (the "Authority") issued $90,000,000 Local Agency Revenue Bonds, 2004 Series A (the "Bonds") to provide a loan to the La Quinta Redevelopment Agency (the "Agency") to finance affordable low and moderate housing in or of benefit to the Community Redevelopment Project Areas No. 1 and 2 (collectively the "Redevelopment Projects") and to advance refund the Agency's Redevelopment Project Areas No. 1 and No. 2, 1995 Housing Tax Allocation Bonds of which $19,955,000 are currently outstanding (the "1995 Bonds"). The City of La Quinta, (the "City") which comprises approximately 34.8 square miles, is located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los Angeles. Redevelopment Project Area No. 1, (the "Project Area No. 1") encompasses an area of approximately 11,200 acres, which includes approximately 50.3% of the current area of the City. Redevelopment Project Area No. 2 (the "Project Area No. 2") encompasses an area of approximately 3,116 acres north of Project Area No. 1. The objective of the Agency is to eliminate or reduce the many instances of economic, physical or social blight presently existing within the boundaries of the Redevelopment Projects. The Bonds were sold by the Agency for the purpose of increasing, improving and/or preserving the supply of low and moderate income housing within the Redevelopment Projects. The Bonds are special obligations of the Agency and are secured by a pledge of Housing Set - Aside Tax Revenues, as defined in the Official Statement. The -Agency also has outstanding Tax Allocation Refunding Bonds, Series 1994 (the "1994 Bonds"), a portion of the debt service on which is payable prior to the Bonds from Tax Revenues required to be deposited in the Project Area no. 1 Low and Moderate Income Housing Fund. The Bonds are not a debt of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction. This Annual Information Statement is being provided pursuant to a covenant made by the Agency for the benefit of the holders of the Bonds and includes the information specified in a Continuing Disclosure Certificate. For further information and a more complete description of the Agency and the Bonds, reference is made to the Official Statement. The information set forth herein has been furnished by the Agency and by sources, which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness. Statements contained in this Annual Information Statement which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to change without notice and the delivery of this Annual Information Statement will not, under any circumstances, create any implication that there has been no change in the affairs of the Agency or any other parties described herein. ll. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of November 12, 2004 Local Agency Revenue Bonds, 2004 Series A $90,000,000 B. FUND BALANCES Fund As of November 12, 2004 Reserve Fund (1) N/A (1) The Reserve Fund is funded by a Reserve Account Surety Bond. Ill. FINANCIAL INFORMATION The audited financial statements for the Agency for the fiscal year ended June 30, 2004 will be separately filed with the Nationally Recognized Municipal Securities Information Repositories and are hereby incorporated by reference into this Annual Information Statement. IV. OPERATING INFORMATION A. ASSESSED VALUATIONS The following table set forth the Taxable Values and the Gross Tax Increment for the Redevelopment Project Areas. Protect Area No. 1 Fiscal Secured Unsecured Utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base 11) Increment 1996/97 $1,297,020,107 $13,821,291 $0 $1,310,841,398 $1,111,443,165 $11,344,856 1997/98 1,383,340,327 13,157,051 0 1,396,497,378 1,197,099,145 12,161,894 1998/99 1,436,942,643 8,594,039 0 1,445,536,682 1,246,138,449 12,877,280 1999/00 1,627,578,717 8,034,814 0 1,635,613,531 1,436,215,298 15,659,371 2000/01 1,927,812,440 14,948,366 0 1,942,760,806 1,743,362,573 18,685,564 2001/02 2,287,724,601 14,486,563 0 2,302,211,164 2,102,812,931 20,929,840 2002/03 2,688,732,575 13,980,069 0 2,702,712,644 2,503,314,411 26,357,623 2003/04 3,062,917,787 13,537,804 0 3,076,455,591 2,877,057,358 29,958,693 2004/05 3,411,082,100 13,813,852 0 3,424,895,952 3,225,497,719 Not Available (1) The Base Value for the Project Area No. 1 is $199,398,233. Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency. 2003104, 2004 Revenue City of La Quinta 16 PROJECT AREA NO.2 Fiscal Secured Unsecured Utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base (1) Increment 1996/97 $419,135,799 $3,521,574 $0 $422,657,373 $327,474,618 $3,510,820 1997/98 485,513,978 4,484,841 0 487,998,819 392,816,064 4,107,340 1998/99 557,362,624 6,306,503 0 563,669,127 468,486,372 5,085,079 1999/00 653,544,147 5,472,923 0 659,017,070 563,834,315 6,127,144 2000/01 790,754,123 9,600,421 0 800,354,544 705,171,789 7,587,996 2001/02 1,003,653;582 12,084,137 0 1,015,737,719 920,554,964 9,004,474 2002/03 1,260,121:204 14,535,754 0 1,274,656,958 1,179,474,203 12,396,203 2003/04 1,510,073,642 20,167,571 0 1,530,241,213 1,435,058,458 15,158,339 2004/05 1,745,868,028 21,504,380 0 1,767,372,408 1,672,189,653 Not Available (1) The Base Value for the Project Area No. 2 is $95,182,755. Source: Riverside County and Audited Financial Statements of the La Quinta Redevelopment Agency. B. HOUSING SET -ASIDE REVENUE The following table sets forth the Housing Set -Aside revenue for the Redevelopment Project Areas. PROJECT AREA NO.1 Total Taxable Gross Tax Housing Fiscal Year Value Increment Set Aside 1996/97 $1,311,330,288 $11,344,856 $2,268,971 1997/98 1,396,497,378 12,161,894 2,432,379 1998/99 1,445,536,682 12,877,280 2,575,456 1999/00 1,635,613,531 15,659,371 3,131,874 2000/01 1,942,760,806 18,685,564 3,737,113 2001/02 2,302,211,164 20,929,840 4,488,487 2002/03 2,702,712,644 26,357,623 5,271,524 2003/04 3,076,455,591 29,958,693 5,991,739 Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the Statement of Indebtedness filed with the Riverside County Auditor -Controller's Office. PROJECT AREA NO.2 Total Taxable Gross Tax Housing Fiscal Year Value Increment Set Aside 1996/97 $422,657,373 $3,510,820 $702,164 1997/98 487,998,819 4,107,340 821,468 1998/99 563,669,127 5,085,079 1,017,016 1999/00 659,017,070 6,127,144 1,225,429 2000/01 800,354,544 7,587,996 1,517,600 2001/02 1,015,737,719 9,004,474 2,025,212 2002/03 1,274,656,958 12,396,203 2,479,241 2003/04 1,530,241,213 15,158,339 3,031,668 Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the Statement of Indebtedness filed with the Riverside County Auditor -Controller's Office 2003/04, 2004 Revenue City of La Quinta 17 C. LAND USE PROJECT AREA NO. 1 2003/04 Total Percent Land Use Secured Value of Total Residential $2,670,014,127 84.39% Vacant 335,399,838 10.60% Commercial 118,804,680 3.76% Recreational 37,757,250 1.19% Institutional (2) 1,143,792 0.04% Miscellaneous/Unknown 696,704 0.02% Total Project Area No.1 $3,163,816,391 100.00% PROJECT AREA NO.2 2003/04 Total Percent Land Use Secured Value of Total Residential $1,273,968,936 85.26% Vacant 78,738,176 5.27% Commercial �'� 115,442,571 7.73% Recreational 2,379,146 0.16% Institutional (2) 3,690,590 0.25% Miscellaneous/Unknown 19,982,374 1.34% Total Prolect Area No. 2 $1,494,201,793 100.00% (1) Includes agriculture and office building uses. (2) Includes government buildings, medical services, and churches. Source: Rosenow Spevacek Group, Inc. D. DEBT SERVICE COVERAGE The following table sets forth the debt service for the Bonds and the portion of debt service on the 1994 Bonds payable from Housing Set -Aside revenue. Total Debt 1994 Bonds Service Payable Fiscal Debt Service Debt Service From Housing Housing Debt Service Year Payment �'� Payment �'l Set -Aside Set -Aside t2► Coverage 2003/04 $1, 352, 853 $490, 521 $1, 843, 374 $9, 023,407 4.89 (1) Represents the 18.5% portion of annual debt service on the 1994 Bonds to which the Agency has allocated Housing Set -Aside revenue derived from Project Area No. 1. (2) Housing Set -Aside includes revenue from Project Area No. 1 and Project Area No. 2. 2003104, 2004 Revenue City of La Quinta 18 E. ANNUAL DEBT SERVICE The following table sets forth the annual debt service for the Bonds and the portion of debt service for 1994 Bonds payable from the Housing Set -Aside revenue. Information contained in the table below was gathered and verified from the corresponding Official Statements. Maturity Date 1994 Bonds Annual Total September 1, ' Debt Service I'i Principal Interest Debt. Service Combined 2005 $490,770.78 $735,000 $2,224,003.13 $5,183,006.25 $5,673,777.03 2006 490,728.23 1,520,000 2,212,978.13 5,945,956.25 6,436,684.48 2007 491,050.13 1,570,000 2,190,178.13 5,950,356.25 6,441,406.38 2008 490,676.43 1,615,000 2,166,628.13 5,948,256.25 6,438,932.68 2009 490,464.60 1,670,000 2,138,365.63 5,946,731.25 6,437,195.85 2010 490,279.60 1,740,000 2,104,965.63 5,949,931.25 6,440,210.85 2011 490,911.38 1,805,000 2,070,165.63 5,945,331.25 6,436,242.63 2012 490,307.35 1,890,000 2,029,553.13 5,949,106.25 6,439,413.60 2013 1,975,000 1,987,028.13 5,949,056.25 5,949,056.25 2014 2,075,000 1,937,653.13 5,950,306.25 5,950,306.25 2015 2,175,000 1,885,778.13 5,946,556.25 5,946,556.25 2016 2,290,000 1,828,684.38 5,947,368.75 5,947,368.75 2017 2,410,000 1,768,571.88 5,947,143.75 5,947,143.75 2018 2,535,000 1,705,309.38 5,945,618.75 5,945,618.75 2019 2,670,000 1,638,765.63 5,947,531.25 5,947,531.25 2020 2,810,000 1,568,678.13 5,947,356.25 5,947,356.25 2021 2,960,000 1,494,915.63 5,949,831.25 5,949,831.25 2022 3,115,000 1,417,215.63 5,949,431.25 5,949,431.25 2023 3,275,000 1,335,446.88 5,945,893.75 5,945,893.75 2024 3,450,000 1,249,478.13 5,948,956.25 5,948,956.25 2025 3,630,000 1,158,915.63 5,947,831.25 5,947,831.25 2026 3,810,000 1,068,165.63 5,946,331.25 5,946,331.25 2027 4,000,000 972,915.63 5,945,831.25 5,945,831.25 2028 4,200,000 872,915.63 5,945,831.25 5,945,831.25 2029 4,410,000 767,915.63 5,945,831.25 5,945,831.25 2030 4,635,000 657,665.63 5,950,331.25 5,950,331.25 2031 4,870,000 538,893.75 5,947,787.50 5,947,787.50 2032 5,120,000 414,100.00 5,948,200.00 5,948,200.00 2033 5,380,000 282,900.00 5,945,800.00 5,945,800.00 2034 5,660,000 145,037.50 5,950,075.00 5,950,075.00 Total $3,925,188.50 $90,000,000 $43,833,787.50 $177,6671576.00 $181,5921763.60 (1) Represents the 18.5% of annual debt service on the 1994 Bonds to which the Agency has allocated Housing Set -Aside revenue derived from Project Area No. 1. 2003104, 2004 Revenue City of La Quinta 19