1985-1986 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)CITY OF LA QUINTA
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY
CERTIFIED PUBLIC ACCOUNTANTS
FOR THE YEAR ENDED JUNE 30, 1986
CITY OF Id QUINTA
FINANCIAL STATEMENTS
June 30, 1986
TA3LE CW CONTENTS
Page
Number
Accountants' Report 1
Combined Balance Sheet - All Fund Types and Account Groups 2 - 3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 4 - 5
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget (GAAP Basis) and Actual -
General and Special Revenue Fund Types 6 - 7
Notes to Financial Statements 8 - 16
Financial Statements of Individual Funds:
General Fund:
Comparative Balance Sheet 1 17
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 18 - 19
Special Revenue Funds:
Combining Balance Sheet 20
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 21
Federal Revenue Sharing Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 22
State Gas Tax Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 23
Traffic Safety Special Revenue Fund:
Statement of Revenues, Expenditures -and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 24
Local Transportation Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget (GAAP Basis) and Actual 25
Capital Projects Funds:
Combining Balance Sheet 26 - 27
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 28 - 29
_— -ETERS, C.PAL
-----Z • PETERSON. C P.A.
`OO'•Aa.O E. CALLAHAN. C.P.A.
�� • SCHERER CPA.
■ •KDANIEL. C.PA.
titer .. WEINTRAUB. C.P.A.
--OLTKAYP C P.A.
. PERLOWSKI- C P.A.
'—" Z;AOOSK♦, C.PA.
C 1. C ,'IEHL. C PA (RETIRED)
GO— 9 CVANS. C.P.A. (RETIRED)
A-000-ESSIONAL CORPORATION
City Council
City of La Quinta
La Quints, California
DIEHL. EVANS AND COMPANY
A PARTNERSr P INCLUDING ACCOVNTANC� CORPORAT,ONS
CERTIFIED PUBLIC ACCOUNTANTS
1910 NORTH BUSH STREET
SANTA Ah A. CALIFORNIA 92706-2e9a
1714D 542-4453
September 11, 1986
ACCOUNTANTS' REPORT
OTNE• OFF CES AT;
2965 ROOSE.C'.T STRCET
=AKSSAO. C&LIFCII wA 9200 8-23 8 9
46191 729-2343
ZO -ES' .000-0 A.EN,C
ESCONDIDO- CAIIFCQ.." 9,20z"990
X6.91 7A•. ).A1
ONE C•v C PLAZA SUITE 265
NEWPORT BEACH, CALIFORNIA 92660
17141 644-6156
We have examined the combined financial statements of the City of La Quinta as
of, and for the year ended June 30, 1986, as listed in the table of contents.
Our examination was made in accordance with generally accepted auditing
standards and, accordingly, included such tests of the accounting records and
such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the combined financial statements referred to above present
fairly the financial position of the City of La Quints at June 30, 1986 and the
results of its operations for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that of the
preceding year.
Our examination was made for the purpose of forming an opinion on the combined
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 combined financial
statements of the City of La Quinta. The information has been subjected to the
auditing procedures applied in the examination of the combined financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the combined financial statements taken as a whole.
Mc
r
CITY OF LA QUINTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 1986
ASSETS
Cash and investments (Notes 2e and 4)
Accrued property taxes receivable
Accrued interest receivable
Accounts receivable
Deposita
Restricted assets (Note 11):
Cash
Accrued interest receivable
General fixed assets (Notes 2f and 3)
Amount to be provided for payment of long-term debt
Amount available in debt service fund
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable and accrued expenses
Compensated absences payable (Notes 2g and 5)
Contracts payable (Note 5)
Bonds payable (Note 5)
Notes payable (Note 5)
Due to other governments (Note 5)
TOTAL LIABILITIES
FUND EQUITY:
Investments in general fixed assets
Fund balances (Note 10):
Reserved
Unreserved:
Designated
Undesignated
TOTAL FUND EQUITY
TOTAL LIABILITIES ANu FUND EQUITY
See accountants' report and notes to financial statements.
-2-
Governmdnta
Special
General Revenue
$ 2,977,745 $ 407,71
26,527 -
74,792 -
132,892 75,62
13,541 -
$ 3,225,497 $ 483,34,
$ 345,622 $ -
345,622 -
26,147 -
.853,728 _ 483.134,
.1-9,875
483,341
$ 483,34L
Acct-_ "rou s
Fund T es General ;eneral Totals (June 30, Onl )
.lune 30
Debt Capital Fixed Tong -Term 1986 1985
Service Projects_ Assets
Debt
$ 409,321 $ 458,740 $ - S _ $ 4,253,524 $ 2,418,455
7,826 - - 34,353
30,045- - - 104,837 41,866
208,518 182,339
13,541 -
3,107,652 - - - 3,107,652
104,508 - - - 104,508
458,252 - 458,252 73,173
_ - 17,738,304 17,738,304 31,005
- 3 659 352 3,659,352 -
$ 3,659,352 $ 458740 $ 458,252 $ 21397 656 $ 29,682,841 $=2 746 838
$ 345,622 $ 280,513
82,328 82,328 31,005
243,572 243,572 -
_ - 20,000,000 20,000,000
778,000 778,000
293 756 293,756
21,397,656 21 743 278 311 518
458,252 - 458,252 73,173
26,147 -
3,659,352 458,740 - - 4,118,092 194,928
3 337 072 2,167,219
3,659,352 _ 458,740 458,252 - 7,939,563 2,435,320
$ 3,659,352 $ 45S,740 $ 458,252 $ 21,397,656 $ 29,682,841. $ 2,746,838
-3-
CITY OF LA QUINTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
For the year ended June 30, 1986
With comparative totals for the year ended June 30, 1985
REVENUES:
Taxes
Licenses and permits
Intergovernmental revenues
Revenues from use of money or property
Other revenues
Contributions
TOTAL REVENUES
EXPENDITURES:
Current expenditures:
General government
Public safety
Street maintenance
Capital projects
Debt Service:
Interest
Bond issue costs
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from long-term debt
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS OF REVENUES AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
FUND BALANCES - JULY 1
FUND BALANCES - JUNE 30
See accountants' report and notes to financial statements.
-4-
$ 1,275,522
1,557,655
268,864
176,421
34,912
3,313,374
401,972
1,557,160
140,798
2,099,930
1,213,444
51,864
(94,401)
(42,537)
1,170,907
1,70B,968
$ 2,879,875
-5-
Totals (Memorandum Only)
Special
Debt
Capital
_ June
1986
30, 1985
Revenue
Service
Projects
$ -
$ 1,003,237
$ 250,809
$ 2,529,568
$ 1,680,642
_
-
1,557,655
869,490
-
575,914
368,747
307,050
-
-
198,995
163,277
22,574
-
-
213,162
25,402
273,476
14,747
-
237,734
2371734
-
329,624
1,!16,399
513 945
5,373,342
3,096,903
77,533
479,505
571,304
-
1,557,160
1,232,554
_
_
-
140,798
299,102
_
-
17,458,000
17,458,000
-
-
847,529
-
847,529
"
-
549_2186
_ -
549 186
-
1,396,71 5
17,535,533
21,032,178
_ 2,102,960
329,624
_ (1802316)
_(17,021,588)
_(15,658,836)
993,943
-
3,492,600
17,285,400
20,778,000
'
406,054
94,401
-
4,250,809
49397,074
(4,390
(405,054)
(51 864)
-
(4,250 809)
_
42,537
3,492 600
17,285;400
20,778,000
-
372,161
3,312,284
263,812
5,119,164
993,943
_ 111,183
_068
194,928
2,362,147
1,360.204
$ 4,83 344
_L3 L659 352
$ 458,740
$ 7,481,311
$ 2,3541147
-5-
CITY
OF LA QUINTA
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,
1986
General
Variance
Favorabla
Budget
Actual
(Unfavorable)
REVENUES:
Taxes
$ 1,096,750
$ 1,275,522
$ 178,772
Licenses and permits
833,000
1,557,655
724,655
Intergovernmental revenues
186,650
268,864
82,214
Revenues from use of money
or property
150,000
176,421
26,421
Other revenues
_ 23,000
34,912
11,912
TOTAL REVENUES
2,289,400
3,313,374
1,023,974
EXPENDITURES:
Current expenditures:
General government
516,896
401,972
114,924
Public safety
2,669,454
1,557,160
1,112,294
J Street maintenance
288,000
140,798
147,202
j Capital projects
560,000
560,000
TOTAL EXPENDITURES
42034,350
2,099,930
_1,934,420
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
(1,744.950)
1,213,444
2,958,394
OTHER FINANCING SOURCES (USES):
Operating transfers in
51,864
51,864
-
Operating transfers out
(94,401)
_ (94,401)
-
TOTAL OTHER FINANCING
SOURCES (USES)
(42,537)
(422537)
-
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
(1,787,487)
1,170,907
2,958,394
FUND BALANCES - JULY 1, 1985
1,708,968
1,708,968
-
FUND BALANCES - JUNE 3C, 1986
$ (78 519)
$_2,879,875
$ 2,958z3�i-
See accountants' report and notes to financial statements.
-6-
} -7-
Special Revenue
Totals
(Memorandum
Only)
Variance
Variance
Favorable
Favorable
�Bu�et
Actual
(Unfavorable)
Bud et
Actual
(Unfavorable)
1,096,750 $
1,275,522
$ 178,772
_
_
a
833,000
1,557,655
724,655
187,813
307,050
119,237
374,463
575,914
201,451
3,000
22,574
19,574
153,000
198,995
45,995
-
23000
34,912
11,912
190,813
329,624
138,811
2,480,213
3,642.998
1,162,785
_
_
-
516,896
401,972
114,924
_
-
-
2,669,454
1,557,160
1,112,294
-
288,000
140,798
147,202
_
_
-
560 000
-
560,000
-
4 034 350
2 099 930
1,934,420
190,813
329,624
1� 3�
(1,554,137)
_ 1,543,068
3,097_1205
94,401
94,401
-
146,265
146,265
-
(51,864)
{51,864)
-
(146,265)
_ (1461265)
-
42,537
42,537
233,350
372,161
138,811
(1,554,137)
1,543,068
3,097,205
111,183
111,183
-
1,820,151
1,820,151
-
_
$ 344L533
$ 483,344
$ 1381811
$ 266,014
$ 3,363,219
$ 3,097_1205
} -7-
r
I
a
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
June 30, 1986
1. REPORTING ENTITY:
The reporting entity "City of La Quints" includes the accounts of the City
and the La Quints Redevelopment Agency (Agency). Although the City and the
Agency are legally separate entities, the La Quints City Council exercises
oversight responsibility ager the Agency. The members of the City Council
also act as the governing body of the Agency, and the City provides loans
and management assistance to the Agency.
The City of La Quinta was incorporated May 1, 1982 and has established a
Council/Manager form of government.
The La Quints Redevelopser: 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 one redevelopment project for the purpose of
developing flood control improvements and facilities. The area of the
redevelopment project comprises approximately 17.5 square miles.
The City's comparative financial statements as of, and for the year ended,
June 30, 1985 have been presented herein, including both the City and the
Agency. However, prior year comparisons for each individual fund, other
than the general 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:
GOVERNMENTAL FUND TYPES
1. General Fund - accounts for all unrestricted 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 sir_:`_:ed purposes.
See accountants' report.
-6-
C
CITY OF LA QUINTA
NOTYS TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
2. SICXIF:CANT ACCOUNT:SG PCLICIES (CONTINUED):
a. Description of funds and account groups (Continued):
3. Debt Service Funds - accounts for Agency tax increment revenue
restricted for use to pay debts of the Agency.
4. Capital Projects Funds - account for financial resources used for
acquisition or construction of major capital facilities and
equipment.
ACCOUNT GROUPS
Account Groups are used to establish accounting control and
accountability for the City's general fixed assets and general long-term
debt.
b. Basis of accounting:
Governmental fund types are accounted for using the modified accrual
basis of accounting. Revenues are recognized when they become
"susceptible to accrual", that is, measurable and available to finance
expenditures of the current period. Accrued revenues include property
taxes received within 60 days after year end (see Note 8), sales taxes,
revenue sharing entitlements and earnings on investments. Expenditures
are recorded when the liability is incurred, except that principal and
interest payments on long-term debt are recorded as expenditures when
due.
c. Measurement focus:
All governmental funds are accounted for on a spenlins 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.
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:
See accountants' report.
-9-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Budgetary accounting (Continued):
1. Budgets for the General, Special Revenue and Capital Projects Funds
are adopted on a basis 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 exists.
3. Estimated revenue is the original estimate with modifications for
new programs which are anticipated to be received during the fiscal
year.
4. Original appropriations are modified by supplemental appropriations.
5. Budgetary control is maintained over all accounts and expenditures
are not allowed to exceed appropriations except in those specific
projects and programs approved in advance by the City Council.
6. The City Council approves all significant changes.
7. Article XIIIB of the California Constitution allows the City to
designate a portion of fund balance for general contingencies, to be
used for any purpose. The unreserved general fund balance of
$2,868,095 at June 30, 1986 has been so designated.
e. Investments:
Investments are stated at cost, which approximates market value.
f. General fixed assets:
General fixed assets are recorded as expenditures of the various
governmental fund types at the time of purchase. Such assets include
leasehold improvements, furniture, fixtures and equipment and are
capitalized in the general fixed asset group of accounts at cost, or if
contributed, at fair market value. No depreciation is provided on
9 general fixed assets.
See accounta=ts' report.
CITY OF LA
NOTES TO FINANCIAL STAiE%fENTS
(Continued)
.:une 30, :'----6
2. SIGNi.:.�ANT AC.'7JUNTINC PCL -CIES (CON'._x--_Z:)
g. Compensated absences:
In governmental 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
governmental funds is recorded in the General Long -Term Debt Account
Group. There is no fixed payment schedule for compensated absences.
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, in the general long-term debt account group.
No amount is accrued at June 30, 1986. Small dollar claims and
judgements are recorded as expenditures when paid.
i. Total columns on the Combined Financial Statements are captioned
"Memorandum Only" to indicate that they are presented only to facilitate
financial analysis and such data is not comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this
data.
3. CHANGES IN GENERAL FIXED ASSETS:
A summary of changes in general fixed assets at June 30, 1986 is as follows:
Balance Balance
June 30 1985 Additions Deletions June 30 1986
Equipment and furniture $ 24,383 $ 140,581 $ - $ 164,964
Vehicles 46,303 240,588 - 286,891
Leasehold improvements 2,487 6,491 - 8,978
TOTAL GENERAL
FIXED ASSETS 73,173 $ 387,660 $ - � 460,833
See accountants' report.
-11-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
4. CASH AND INVESTMENTS:
Cash and investments at June 30, 1986 consisted of the following:
Deposits:
Bank demand accounts $ 122,093
Investments:
U.S. Treasury Bond 1,968,539
Federal Home Loan Mortgage Corp. (FHLMC) 1,075,544
California Local Agency Investment Fund 4,195,000
Total Cash and Investments $ 7.361.176
Cash and investments are recorded in the accompanying combined balance sbeet
as follows:
Cash and Investments - unrestricted $ 4,253,524
Cash and Investments - restricted 3,107,652
Q 9 O L 1 l Y L
5. GENERAL LONG-TERM DEBT:
A summary of changes in long-term debt for the year ended June 30, 1986 is
as follows:
See accountants' report.
-12-
Balance at
Balance at
June 30 1985
Additions
Deletions
June 30, 1986
Compensated absences
$ 31,005
$ 51,323
$ -
$ 82,328
Contract payable -
fire truck
-
188,671
37,734
150,937
Contract payable -
computer
-
109,297
16,662
92,635
Bonds payable
-
20,000,000
-
20,000,000
Notes payable
-
778,000
-
778,000
Due to Countv of
Riverside
-
293,756
-
293,756
TOTAL GENERAL
LONG-TERM, DEB?
$ 31,005
$ 21,421,047
$ 54,396
$ 21 397,656
See accountants' report.
-12-
::TY OF LA QUINTA
TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
5. GENERAL LONG-TERM :!--7 �'_:NUE D):
a. Contracts Payable:
The City purchased an IBM computer on a lease -purchase contract. Five
semi-annual payments of $21,680 and a final payment of $19,099 including
interest at 7.5% ver annum, beginning March 30, 1986 are due on the
contract. Equipment cost of $109,297 has been capitalized and included
in general fixed assets.
The City purchased a new fire truck on a lease -purchase contract. Eight
annual payments of $21,562 including interest at 7%, are due beginning
December 1, 1986. In exchange for improved fire protection in an area
of the City which is under development, a developer has agreed to
reimburse the City for the annual payments as they are paid. The City
has additional collateral for this agreement in the form of a secured
lien against all property owned by the developer and located within city
limits. The cost of the fire truck of $188,671 has been capitalized and
included in general fixed assets.
The scheduled future payments on these contracts are as follows:
Year Ended
June 30,
1987
1988
1989
1990
1991
All subsequent years
Less interest
Total
b. Bonds Payable:
Computer Fire Truck
Contract C:nntrart
$ 43,360
43,360
19,099
105,819
(13,184)
$ 92,635
$ 32,128
30,618
29,109
27,599
26,090
47.652
193,196
(42,259)
$ 150,937
La Quinta Redevelopment Project Tax Allocation Bonds, Series 1985 were
issued during the fiscal year ending June 30, 1986. The bonds were
issued in the amount of $20,000,000 and have an average interest rate of
9.404% per annum. Principal payments were paid annually on September 1,
beginning in 1989. Interest payments are payable semi-annually on March
1 and September 1, beginning in 1986. Bonds maturing on or before
September 1, 1995 are not subject to call and redemption prior to
maturity. Bonds maturing on or after September 1, 1996 are subject to
redemption on any interest payment date at par plus a premium together
with accrued interest to the date of redemption.
See accountants' report.
-13-
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
5. GENERAL LONG-TERM DEBT (CONTINUED):
b. Bonds Pavable (Continued):
The scheduled future debt service payments on the bonds is as follows:
Year Ended
_June 30, Principal Interest Total
1987 $ - $ 1,900,000 $ 1,900,000
1988 - 1,900,000 1,900,000
r 1989 - 1,900,000 1,900,000
1990 245,000 1,888,363 2,133,363
i 1991 265,000 1,864,138 2,129,138
All subsequent years 19,490,000 27,658,774 47,148,774
Total $ 20 000 000 $ 37,111,275 $ 57,111,275
c. Notes Payable:
r
The Coachella Valley Water District advanced $778,000 to the Agency for
� engineering costs incurred for a flood control project. This amount
accrues interest at the rate of interest being earned by funds deposited
with the State of California Local Agency Investment Fund. The Agency
must begin repaying principal and accrued interest by August 15, 1990.
No payment schedule has been determined.
d. Due to Countv of Riverside:
Based on an agreement with the County of Riverside, the Agency shall
repay to the County 50 percent of tax increment received which would
have been retained by the County if the Agency did not exist. There
repayments are subordinate to certain debt service of the Agency and
exclude amounts allocated to the low-income housing 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 anourt pa7rable to the County under this agreement at
{ June 30, 1986 is $293,756, including $8,453 of accrued interest.
6. RETIREMENT PLAN:
The City is a participant is :mac Public Employees Retirement System .(PERS)
of the State of California cever:ng all the City's permanent ev-aloyees.
Contributions to the system acv "sec on rates set by PERS based c= certaic
actuarial assumptions, sem_ aw _:-_t_c of employse_—t, estimarss sa-A-, rates,
mortality rates, projected rr--- ment benefits and other factors. Pension
See accountants' report.
_:4_
a.
Y OF LA QCI NTA
SES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
,ZET: r PLAN (CCW—_ -V-,--1
costs are recorded as Expenditures wben paid by moatb:■ _z_:::butions to
PERS. The total pension expense for the year ended :;:ae 30, 1986 was
$30,775, of which approximately $500 was for prior service costs. Actuarial
information related to the plan was not available from PERS at June 30,
1986. However, at June 30, 1985 the plan net assets available for benefits
totaled $78,442, and the present value of the City's unf,.�_=dcd obligation for
prior service costs totaled $281,721, which amount will be funded through
the year 2000 from established contribution rates. The actuarial present
value of vested and non -vested accumulated plan benefits' is not determined
under the PERS system of accounting.
7. LEASE COMMITMENTS:
The City is operating out of leased facilities. The lease commenced on
August 1, 1982 and terminates on November 30, 1987, with a two-year renewal
option. Lease payments are approximately $25,000 per year.
8. PROPERTY TAXES:
Under California law, property taxes are assessed and collected by the
counties up to 1% of assessed value, plus other increases approved by the
voters. The property taxes go into a pool, and are then allocated to the
cities based on complex formulas. Accordingly, the City of La Quinta
accrues only those taxes which are received from the county within sixty
days after year end.
Lien date March 1
Levy date June 30
Due dates November 1 and February 1
Collection dates December 10 and April 10
The Agency's primary source of revenue comes from property taxes, referred
to in the accompanying financial statements as "tax increment revenue".
Property taxes allocated to the Agency are computed in the following manner:
a. The assessed valuation of all property within the project area is
determined on the date of adoption of the Redevelopment Plan.
b. Property taxes related to the incremental
after the adoption of the Redevelopment
Agency; all taxes on the "frozen" assessed
allocated to the City and other districts.
See accountants' report.
-15-
increase in assessed values
Plan are allocated to the
valuation of the property are
CITY OF LA QUINTA
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
8. PROPERTY TARES (CONTINUED):
The Agency has no power to levy and collect taxes and any legislative
property tax de -emphasis might necessarily reduce the amount of tax revenues
that would otherwise be available to pay the principal of, and interest on
bonds payable. Broadened property tax exemptions could have a similar
effect. Conversely, any increase in the tax rate or assessed valuation, or
any reduction of elimination of present exemptions would necessarily
increase the amount of tax revenues that would be available to pay principal
and interest on bonds payable.
9. LITIGATION, COMMITMENTS AND CONTINGENT LIABILITIES:
Litigation:
Certain claims have been filed against the City in the normal course of
business. Based upon information received from the City Attorney, the
estimated liability under such claims would not be significant.
10. FUND BALANCES:
Fund balances may either be reserved or designated by actions of the City
Council, or -designated by law.
a. Unreserved fund balances:
Unreserved fund balances are those fund balances which have not been
reserved by the City.
b. Reserved fund balances:
General fund reserves are for amounts encumbered but not yet spent.
c. Designated fund balances:
Designated fund balances in the Capital Projects Fund are for amounts
that will be re -appropriated in fiscal 1986-87 for continuing projects.
Designated fund balances in the Debt Service Fund are for amounts that
will be used to pay future principal and interest on outstanding
indebtedness.
11. RESTRICTED ASSETS:
Certain assets held by a fis= _ age=t are restricte_ _= t�t=:r use to the
retirement of principal and imterest on bonds and notes payaole (see Note
S), and are not avai:a::e =:r use by :=e City or Ageac% for any other
purpose.
See accountants' report.
-116-
FINANCIAL STATSENTS OF INDIVIDUAL FUNDS
C;:T nr LA WINTA
COMPARATIVE BALANCE SHEET - GENERAL YUN
June 30, 1986 and 1985
Cash and temporary investments
Accrued property taxes receivable
Accrued interest receivable
Accounts receivable
Deposits
TOTAL ASSETS
ASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable and accrued expenses
FUND EQUITY:
Fund balance:
Reserved
Unreserved:
Undesignated
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
-17-
$ 2,977,745 $ 1,783,073
26,527 -
74,792 41,866
132,892 164,542
13 541
$ 3,225,497 $ 1,989,481
$ 345,622 $ 280,513
26,147
_2L.853
728
_ 1,708,968
2,879,875
1,708,968
5 3.225,497
$ 1,989,481
5
CITY OF LA QUINTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCE - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL FUND
For the year ended June 30, 1986
With comparative totals for the year ended June 30, 1985
REVENUES:
Taxes
Licenses and permits
Intergovernmental revenues
Revenues from use of money or property
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current expenditures:
General government
Public safety
Street maintenance
Capital projects
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND
OTHER USES
FUND BALANCES - JULY 1
FUND BALANCES - JUNE 30
1986
-18-
22289,400 3,313,374 1,023 Q74
516,896 401,972 114,924
2,669,454 1,557,160 1,112,294
288,000 140,798 147,202
560,000 560,000
4,034,350 2,099,930 1,9341420
(12744,950) 1,213,444 22958,394
51,864 51,864 -
(94,401) (94,401) -
(42,537) (42,537) -
(1,787,487) 1,170,907 2,958,394
1,708,968 1,708,968 -
S 2,8792875 $ 2;958,394
Variance
Favorable
Budget-
Actual
(Unfavorable)
$ 1,096,750
$ 1,275,522
$ 178,772
833,000
1,557,655
724,655
l&.65C
268,864
82,214
150,000
176,421
26,421
23,000
34,912
11,912
-18-
22289,400 3,313,374 1,023 Q74
516,896 401,972 114,924
2,669,454 1,557,160 1,112,294
288,000 140,798 147,202
560,000 560,000
4,034,350 2,099,930 1,9341420
(12744,950) 1,213,444 22958,394
51,864 51,864 -
(94,401) (94,401) -
(42,537) (42,537) -
(1,787,487) 1,170,907 2,958,394
1,708,968 1,708,968 -
S 2,8792875 $ 2;958,394
1985
2,314,876 1 981655 333,221
(383,505) 338,219 721,724
399,590 399,590
(6,464) (6,464)
393,126 393,126
9,621 731,345 721,724
977,623 977,623
$ 987 244 $ 1,708,968 L12117 24
-19-
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 877,106
$ 1,191,566
$ 314,460
654,200
790,290
136,090
170,677
177,107
6,430
80,000
151,631
71,631
149,388
9,280
(140,108)
1,931,371
2,319,874
388,503
451,692
449,999
1,693
1,309,371
1,232,554
76,817
553,813
299,102
254,711
2,314,876 1 981655 333,221
(383,505) 338,219 721,724
399,590 399,590
(6,464) (6,464)
393,126 393,126
9,621 731,345 721,724
977,623 977,623
$ 987 244 $ 1,708,968 L12117 24
-19-
CITY OF LA QUINTA
COMBINING BALANCE SHEET - ALL SPECIAL REVENUE FUNDS
June 30, 1986 and 1985
ASSETS
Cash and temporary
investments
Due from other
gove rmsrr-ts
TOTAL ASSM
FUND EQUITY
Unreserved fund
balances
r
Federal Local
Revenue State Traffic Transpor-
Sharing Gas Tax Safety tation
Totals
June 30
1986 1985
$ 18,746 $ 256,354 $ 23,677 $ 108,941 S 407,718 $ 93,386
14,184 9,464 4,106 47,872 75,626 -.7,79-
32,930 $ 265,818 $ 27,783 $ 1562813 $ 4831344 $ 111,183
32,930 $ 2551818 $ 27,783 $ 156,813483 344 $ 111,183
-20-
CIS OF Ld QIIZT&
COMEINING STATEMENT OF YE:ENUES, FST-IMITLKES AND CHANGES
Iii FUND BALANCES - ALL SPECIAL REVUE FUNDS
For the year ended June 30, 1986
Wi __ _m?asative rotas for the .rear er�de-d June 30, 1985
EXCESS OF REVENUES OVER
EXPENDITURES 57,381 178,200 27,438 6605 329,624 203,286
OTHER FINANCING SOURCES
(USES):
Operating
transfers in
Operating
transfers out
TOTAL OTHER
FINANCING
SOURCES (USES)
EXCESS OF REVENUES OVER
EXPENDITURES AXD
OTHER USES
FUND BALANCE - JULY 1
FUND BALANCE - JUNE 30
4,633 89,768 94,401 954
(33,308) (14,268)_(4_L288)----:---- --(-51--?-864) (286,651)
(33,308), (14268) 345 __891768 42,537 (28_ 5.,697)
24,073 163,932 27,783 156,373 372,161 (82,411)
8,857 101,886 - 440 111,183 193,594
$ 32,930 $ 265_L818 $ 27,783 $15��813 $ 483,344 $ 111,183
-21-
Federal
!-o al
Totals
Revenue
State
Traffic
Transpor-
June
30,
Stearin
Gas Tax
Safety
cation
1986
1985
REVENUES:
Intergovernmental
$ 56,349
$ 163,996
$ 26,136
$ 60,569 $
307,050
$ 191,640
revenues
Revenue from use
of money and
1,032
14,204
1,302
X036
22,574
11,646
property
TOTAL REVENUES
57,381
178,200
27,438
66,605
329,624
203,286
EXPENDITURES
EXCESS OF REVENUES OVER
EXPENDITURES 57,381 178,200 27,438 6605 329,624 203,286
OTHER FINANCING SOURCES
(USES):
Operating
transfers in
Operating
transfers out
TOTAL OTHER
FINANCING
SOURCES (USES)
EXCESS OF REVENUES OVER
EXPENDITURES AXD
OTHER USES
FUND BALANCE - JULY 1
FUND BALANCE - JUNE 30
4,633 89,768 94,401 954
(33,308) (14,268)_(4_L288)----:---- --(-51--?-864) (286,651)
(33,308), (14268) 345 __891768 42,537 (28_ 5.,697)
24,073 163,932 27,783 156,373 372,161 (82,411)
8,857 101,886 - 440 111,183 193,594
$ 32,930 $ 265_L818 $ 27,783 $15��813 $ 483,344 $ 111,183
-21-
CITY OF LA QUINTA
FEDERAL REVENUE SHARING SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET (GAAP BASIS) AND ACTUAL
For the year ended June 30, 1986
REVENUES:
Intergovernmental revenues
Revenue from use of money and property
TOTAL REVENUES
EXPENDITURES
EXCESS OF REVENUES OVER EXPMITURES
OTHER FINANCING (USES):
Operating transfers out
EXCESS OF REVENUES OVER EXPENDITURES
AND OTHER USES
FUND BALANCE - JULY 1, 1985
FUND BALANCE - JUNE 30, 1986
-22-
Bind etActual
$ 36,264 $ 56,349
- 1,032
36,264 57.381
36,264 57,38
Variance
Favorable
Unfavorable)
$ 20,085
1,032
21,117
21,117
(33,308) _ (33,308)
36,264 24,073
8,857 8,857
$$ 45,121 $ 32,930
(12,191)
$ (12,191)
CITY (I' :A : UINTA
STATE GAS TAX SPECIAL REVENUE FUND
: .-7M.w YT OF REVENUES, EXPENDITURES AND CHANGES IN FUND 3ALA..QCES
BUDGET (GAAP BASIS) AND ACTUAL
For the year ended June 30, 1986
REVENUES:
Intergcve.nmental revenues
Revenue from use of money and property
TOTAL REVENUES
EXPENDITURES
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING SOURCES
EXCESS OF REVENUES OVER EXPENDITURES
AND OTHER USES
FUND BALANCE - JULY 1, 1985
FUND BALANCE - JUNE 30, 1986
-23-
Variance
Favorable
Budget _ Actual (Unfavorable)
$ 110,419 $ 163,996 $ 53,577
3,000 X04 11,204
113,419 178_,200 64,781
113,419 178,200
64,781
- (1�)
(14,268)
- (14,268)
(14,268)
113,419 163,932 50,513
101,886 101,886 -
$ 215,305 $ 265,818 $ 50,513
'- CITY OF LA QUINTA
TRAFFIC SAFETY SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET (GAAP BASIS) AND ACTUAL
For the year ended June 30, 1986
REVENUES:
Intergovernmental revenues
Revenue from use of money or property
TOTAL REVENUES
EXPENDITURES
EXCESS OF REVENMS OVER EXPENDITURES
OTHER FINANCING (USES):
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES OVER EXPENDITURES
AND OTHER USES
FUND BALANCE - JULY 1, 1985
FUND BALANCE - JUNE 30, 1986
-24-
Variance
Favorable
Budget Actual (Unfavorable)
$ 20,000 $ 26,136 $ 6,136
- 1,302 1,302
20,000 27,438 7,438
20,000 27,438 7,438
4,977 4,977
(4,632) _ (4,632)
345 345
20,000 27,783 7,783
$ 20,000 $ 27,783 $ 7,783
C:7Y OF LA
LOCAL TRANSPORTATION SPECIE.
RE-.-INUE FUND
BALANCES
-
STATEMENT OF REVENUES, EXPENDITURES &XD CHAS6ES IN
FUND
BUDGET (GAAP BASIS) A31D ACC"UAL
For _he year ended :=e
3C. 1986
Variance `
i
Favorable
Budget
Actual
(Unfavorable) ;
$
21 ,130 $
6 ,569
439
$ 36 ,036
overnmental revenues
-
6 036
6
e from use of money and property
�—
21,130
66,605
r 45.475
TOTAL REVENUES
'URES
r
)F REVENUES OVER EXPENDITURES
21,130
66,605
__45,475
LNANCING SOURCES:
_
89768
_89,._768
=ing transfers in
OF REVENUES OVER EXPENDITURES
21,130
156,373
135,243
THER SOURCES
440
440
—
LANCE - JULY 1, 1985
,
$ 21,500
$ 1562813
$ 135,243
LANCE - JUNE 30, 1986
-25-
U
CITY OF LA QUINTA
COMBINING BALANCE SHEET - ALL CAPITAL PROJECTS FUNDS
Cash and temporary investments
Unreserved fund balances:
Designated for capital projects
June 30, 1986
ASSETS
FUND EQUITY
-26-
Redevelopment
Pro'ect
$ 616
$ 676
Police
Totals
fic
and Fire
June 30,
zation.
Facilities
PGA West 1986 1985
}
,976
$ 178,396
$ 251.,692 $ 458,740 194,928
'
a
L
,976
$ 178,396
$ 251,692 $ 458,740 $ 194,928
f
1:
i
!
F
i
4
f
yt
1
r
}
1
-27-
i
{
I ti
CITY OF LA QUINTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - ALL CAPITAL PROJECTS FUNDS
For year ended June 30, 1986
With comparative totals for the year ended June 30, 1985
REVENUES:
Taxes
Licenses and permits
Revenues from use of money or property
Contributions
TOTAL REVENUES
EXPENDITURES:
Current expenditures:
General government
Capital projects
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from note
Bond proceeds
Operating transfers in
Operating transfers out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES
FUND BALANCES - JULY 1
FUND BALANCES - JUNE 30
-28-
Redevelopment
Project
$ 250,809
250.809
77,533
17,458,000
17,535,533
(17,284,724)
778,000
16,507,400
4,250,089
(4,250,089)
17,285,400
676
$ 676