2007 12 18 FAT
Coil,
V0 �0s
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OF
FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, DECEMBER 18, 2007 — 4:00 P.M.
Beginning Resolution No. FA 2007-003
CALL TO ORDER
Roll Call:
Board Members: Henderson, Kirk, Osborne, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF NOVEMBER 20, 2007.
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. RECEIVE AND FILE TREASURER'S REPORT DATED OCTOBER 31, 2007.
Financing Authority Agenda 1 December 18, 2007
o aI
2. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED OCTOBER
31, 2007.
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, 2007.
BUSINESS SESSION.- NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
PUBLIC HEARINGS - NONE
ADJOURNMENT
The next regular meeting of the Financing Authority will be held on January 15,
2008, at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico,
La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Financing Authority meeting of December
18, 2007, 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 December 14, 2007.
DATED: December 14, 2007
(�; " &n°,
lJ VERONICA J. MONTECINO, City Clerk
City of La Quinta, California
Financing Authority Agenda 2 December 18, 2007 002
COUNCIL/RDA MEETING DATE: December 18, 2007
ITEM T)y`I'LE: Receive and File Treasurer's Report
dated October 31, 2007
RECOMMENDATION:
It is recommended the La Quinta Financing Authority:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: J—
s9t lnw—1 Val",
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
003
`eww 4 lw4u &rw
COUNCIL/RDA MEETING DATE: December 18, 2007
ITEM JITLE: Receive and File Revenue and
Expenditure Report dated October 31, 2007
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the October 31, 2007 Statement of Revenue and Expenditures for
the La Quinta Financing Authority.
Respectfully submitted,
ohn M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures, October 31, 2007
004
A 1 1 AIUMVItIV I I
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
0710112007 - 1013112007 REMAINING
BUDGET RECEIVED BUDGET
15,000 00
000
15,000 00
000
15223
(152 23)
675,880 00
522,620.00
153,260.00
5.926,806 00
3 760 178 12
2,166,627 88
6.617.686 00
4,282,950 35
2,334,735 65
000 0.00 000
000 000 000
000 000 000
6,617,68600 4,212,950.31 2,334,13565
.4 `. 005
K
LA QUINTA FINANCING AUTHORITY
07/01/2007 - 10131/2007
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
DEBT SERVICE EXPENDITURES
SERVICES
15,80000
5.43741
000
10,36259
BOND PRINCIPAL - 1996
360,00000
360,00000
000
000
BOND PRINCIPAL - 2004
1,570,00000
1,570,00000
000
000
BOND INTEREST - 1996
315,880 00
162,620 00
000
153,260 00
BOND INTEREST - 2004
4,356,80600
2.190,17813
000
2,166,62787
TRANSFER OUT
000
000
000
000
TOTAL DEBT SERVICE ,48 . 0
4,288,235 54
0 0
2,330,2 0 46
CAPITAL IMPROVEMENT EXPENDITURES
BOND ISSUANCE COSTS
0.00
000
000
000
TRANSFER OUT
000
000
000
000
TOTAL CAPITAL IMPROVEMENT 0.00
000
000
000
TOTAL FINANCING AUTHORITY
s 000
3
Wd4t 4 e(P Q9Lqrry
COUNCIL/RDA MEETING DATE: December 18, 2007
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, 2007
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, 2007.
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.
007
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 2006/2007 Annual Continuing Disclosure Statement for the La
Quinta Financing Authority 1996 Lease Revenue Refunding Bonds and the 2004
Local Agency Revenue Bond prepared in accordance with the three aforementioned
requirements. Additionally, no announcement of significant events was necessary
for Fiscal Year 2006/2007.
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 for Fiscal Year
End June 30, 2007; or
2. Do not approve, receive and file the Annual Continuing Disclosure for the La
Quinta Financing Authority 1996 Lease Revenue Refunding Bonds for Fiscal
Year End June 30, 2007; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
zzz
Thomas P. Genovese, Executive Director
Attachment: 1. 2006/2007 Annual Continuing Disclosure Statement for the La
Quinta Financing Authority
2
ATTACHMENT 1
LA QUINTA FINANCING AUTHORITY
$8y790,000
1996 LEASE REVENUE REFUNDING BONDS
(LA QUINTA CITY HALL PROJECT)
Riverside County, California
Dated: November 16, 1996
CUSIP: 60419R
2007 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 10, 2007
Also available at:
MuniFinancial
www.muni.com
. 1 009 3
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la- ulnfa.or
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(619)777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, California 92590
(951)587-3500
_Report available for viewing (&
www.munLcom
UNDERWRITER
Miller & Schroeder Financial, Inc.
BOND COUNSEL
Rutan & Tucker, LLP
Costa Mesa, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 51h Street, 24th 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 faimess of the statements contained herein.
010
n
J. 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 35.1 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 Continuing Disclosure 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 Continuing Disclosure
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 Continuing Disclosure 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.
2006107— 1996 Lease Rev City of La Quinta '} " Op
L9
H. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 19, 2007
1996 Lease Revenue Bonds $5,540,000.00
B. FUND BALANCES
Fund As of October 19, 2007
Reserve Fund I'i N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the MBIA Insurance Corporation.
III. FINANCIAL INFORMATION
The audited financial statements for the City for the Fiscal Year Ended June 30, 2007
will be separately filed with the Nationally Recognized Municipal Securities Information
Repositories and are hereby incorporated by reference into this Annual Continuing
Disclosure 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
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
2005
3,765,511
12,364,583
4,794,685
1,104,509
862,890
0
22,892,178
2006
4,426,484
13,029,187
5,044,896
1,248,308
955,569
0
24,704,444
2007
5,246,378
15,634,761
5,019,859
2,994,586
1,384,466
0
30,280,050
2006107 — 1996 Lease Rev City of La Quinta
012
0
B. GENERAL FUND REVENUE BY SOURCE
Fiscal Year
Licenses
Charges
Ending
and
Inter-
for
Rental
June 30
Taxes
Permits
Governmental
Services
Interest
Income
Miscellaneous
Total
2001
$10.331,970
$2,057,423
$2,164,891
$1,998,589
$2,513,789
$0
$43,545
$19,110.207
2002
10,443,436
1,857,691
3,683,490
1,757.744
2,030,346
0
529,190
20,301,897
2003
11,572,985
1,982,127
4,394,045
2,302,759
1,894,03
0
87,240
22,233,459
2004
13,184,050
3,096,145
4,895,986
2,619,578
2,335,154
0
109,338
26,240,301
2005
16,762,028
3,226,167
7,552,035
3,402,602
3,238,808
0
513,030
34,694,670
2006
19,259,829
5,145,430
6,530,777
2,180,058
4,115,872
123,500
315,812
37,671,278
2007
21,594,996
2,788,882
7,400,101
1,544,190
5,188,103
0
504,1401
39,020,416
0)
Includes Contribution from property owners of
$151,785 and
Fines and forfeitures of $337,521.
C. PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year Total Current Percent Collections In Total
Ending Tax Tax of Levy Subsequent Collections
June 30 Levy Collection Collected Years to Tax Levy
2006 $60,716,047 $73,097,360 120.39% $2,092,065 123.84%
2007 79,252,191 74,533,984 93.46% 1.802,076 95.72%
Note: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes
amounts collected by the City and Redevelopment Agency that were passed -through to other agencies.
Source: County of Riverside Auditor Controller's Office
D. SCHEDULE OF NET TAXABLE VALUE
Fiscal
Year
,Ending
June 30
Secured
Property
Unsecured
Property
Assessed
Property
Value
Less
Exemptions
Net
Taxable
Value
2001
$3,162,945,116
$30,599,753
$3,193.544,869
($50,149,068)
$3,143,395,801
2002
3,789,678,041
32,607,713
3,822,285,754
(54,726,303)
3,767,559,451
2003
5,412,382,710
40,940,877
5,453,323,587
(95,420,075)
5,367,903,512
2004
6,289,493,552
44,014,548
6,333,508,100
(113,037,003)
6,220,471,097
2005
7,856,383,375
72,554,357
7,928,937,732
(115,071,146)
7,813,866,586
2006
9,986,151,525
88,740,840
10,074,892,365
(99,245,721)
9,975,646,644
2007
11,854,669,637
101,433,002
11,956,102,639
(89.688,505)
11,866,414,134
Source:
County of Riverside Auditor -Controller
2006107— 1996 Lease Rev City of La Quinta
013
7
E. SCHEDULE OF DIRECT AND OVERLAPPING DEBT
City Assessed Valuation
$
4,166,001,700
Redevelopment Agency Incremental Valuation
7,700,412,434
Total Assessed Valuation
$
11,866,414,134
Source: Riverside County Auditor Controller
Estimated
Share of
Percentage
Outstanding
Overlapping
Applicable
Debt 6t30/07
Debt
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District
6.420%
$
63,006,886
4,045,042
Coachella Valley Unified School District
25.590%
94,897,458
24,284,260
Desert Sands Unified School District (DSUSD)
7.628%
236,666,277
18,052,904
DSUSD Lease Tax Obligations
7.628%
16,625,000
1,268,155
Coachella Valley County Water District I.D. No. 55
80.771%
4,995,000
4,034,511
Coachella Valley County Water District 1.0 No. 58
7.095%
2,345,000
166,378
DSUSD Community Facilities District No. 1
100.000%
2,000,000
2,000,000
City of La Quints 1915 Act Bonds
100.000%
1,940,000
1,940,000
Coachella Valley Water District Assessment District No. 68
86.247%
2,320,000
2,000,930
Total overlapping debt repaid with property taxes
424,795,621
57,792,180
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
1.293%
$
643,021,333
8,314,266
Riverside County Pension Obligations
1.239%
392.890,000
4,867,907
Riverside County Board of Education COP
1.239%
10,275,000
127,307
Coachella Valley Unified School District COP
25.590%
54,930,000
14,056,587
DSUSD COP
7.628%
13,220,000
1,008,422
Coachella Valley County Water District I.D. No. 71 COP
9.475%
7,485,000
709,204
Coachella Valley Recreation and Park District COP
11.029%
2,565,000
282,894
Total overlapping other debt
1,124,386,333
29,366,587
Total overlapping debt
$
1,124,386,333
87,158,767
City direct debt
252,387,606
Total direct and overlapping debt
'
$ 339,546,373
Notes
' For debt repaid with property taxes, the percentage of overlapping debt applicable Is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental units
taxable assessed value that is within the citys boundaries and dividing it by each units total taxable assessed value
Overlapping governments are those that coincide, at least In part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the Citys ability to issue and repay
long-term debt, the entire debt burden bome by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each
overlapping government.
Source: California Municipal Statistics, Inc.- overlapping debt
Source: City of La Quetta - City Direct debt
014
2006107— 1996 Lease Rev City of La Quinta 4
0
F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2007)
Net Assessed Valuation $11,866,414,134
Debt Limit - 15 % of Assessed Valuation 1,779,962,120
Amount of Debt Applicable to Debt Limit 0
Legal Debt Margin $1,779,962,120
Note: Section 43605 of the Government Code of the State of Calilomia 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 Quints has no general bonded indebtedness.
G. REVENUE BOND COVERAGE
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Debt Service Requirements
Ending
Revenue Available
June 30
for Debt Service
Principal
Interest
Total
Coverage
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
2005
681,220
315,000
366,220
681,220
1.00
20D6
680,575
330,000
350,575
680,575
1.00
2007
678,865
345,000
333,865
678,865
1.00
Note: Revenue available consists of payments from the City General Fund, Civic Center
Development Impact Fee Fund and the Redevelopment Agency Capital Project Fund.
H. DEMOGRAPHIC STATISTICS Calendar Year 2007
City Land (Sq. Miles)
(3)
35.1
Population
(1)
41,092
Median Household Income (in dollars)
(4)
$67,754
Number of Dwelling Units
(3)
20,176
Persons per Household
(3)
2.846
Average Income per person per household
$23,807
Labor Force
(2)
15,300
Employment
(2)
14,900
Unemployment Rate
(2)
2.61%
Median Age
(3)
36.4
(1) State of California Department of Finance - January 1 of each year
(2) State of California Economic Development Department website
(3) City of La Quints Building S Safety and Community Development Departments
(4) Desert Wheeler's Newsletter City Overview
2006107 - 1996 Lease Rev City of La Quinta 5
015 9
J.
PRINCIPAL TAXPAYERS (JUNE 30, 2007)
Percent of Total
Taxable
City Taxable
Taxpayer
Assessed Value
Assessed Value
KSL Desert Resort, Inc.
$389,142,025
3.28%
Sams Real Estate Trust / Wal Mart
29,878,467
0.25%
CNL Desert Resort
26,280,884
0.22%
Watermark Granite La Quinta
24,480,000
0.21%
TD Desert Development
25,611,489
0.22%
Quarry at La Quinta, Inc.
23,145,749
0.20%
Aventime Development
21,911,864
0.18%
Apartments at La Quinta Village 11
18,969,865
0.16%
Target Corporation
18,465,969
0.16%
One Eleven La Quinta
15,950,227
0.13%
Total
$593,836,639
6.01%
Note: The amounts shown above Indude assessed value data for both the City and Redevelopment
Agency.
MAJOR EMPLOYERS (JUNE 30, 2007)
Employer
Employees
Activity
La Quinta Resort & Club
1,600
Hotel and Gold Resort
Wal-Mart Super Center
800
Retail
Rancho La Quinta
700
Golf Resort
PGA West Club
500
Golf Resort
Home Depot
240
Retailer
Imperial Irrigation District
200
Public Utility
Lowe's Home Improvement
150
Retailer
Stater Brother's
150
Grocery Store
Tradition Gold Club
100
Golf Resort
Ralph's
88
Grocery Store
Total Employment Listed
4,528
Total City Employment — July 1 14,900
2006107 — 1996 Lease Rev City of La Quinta 6
OIg
10
K. SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2007)
Company
Name
Policy
Number
Coverage
Limits
Term
Premium
Hartford
PEBA07068
Employee Dishonesty,
$1,000,000
02/03/07 - 08
$2,976
Forgery, Computer Fraud
Lexington
1115849
All Risk Property Insurance
40,900,000
07/01/07 - 08
43,869
Including Auto Physical Damage
(Excluding Earthquake)
Pacific Ins
ZG0036449
Earthquake & Flood, Real &
7,500,000
02/07/07 -08
113,000
Endurance Ins
10000326200
Personal Property Including
Contingent Tax Interruption
California
Certificate #5
Comprehensive General Liability
$0 Deductible
07/01/07 - 08
255,568
Joint Powers
Retention
Insurance Authority
$50 Million
California
Certificate
Worker's Compensation
5,000,000
07/01/07 - 08
172,288
Joint Powers
#5009-056
Insurance Authority
L. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2007.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial
difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
2006107- 1996 Lease Rev City of La Quinta
017 11
LA QUINTA FINANCING AUTHORITY
$905000,000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
CUSIP: 60420A
2007 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of December 10, 2007
Also available at:
MuniFinancial p
www.muni.com 018
IV
LIST OF PARTICIPANTS
CITY OF LA QUINTA
www.la-guinta.org
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760) 777-7150
DISCLOSURE CONSULTANT & DISSEMINATION AGENT
MuniFinancial
Temecula, CA 92590
(951) 587-3500
Report available for viewing (a'!
www.muni.com
UNDERWRITER
Stone & Youngberg
BOND COUNSEL
Stradling, Yocca, Carlson & Rauth
Newport Beach, California
FISCAL AGENT
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(213) 613-6047
` In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy,
completeness or fairness of the statements contained herein.
019
13
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 35.1 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
Califomia, 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 Continuing Disclosure 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 Continuing Disclosure 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 Continuing Disclosure 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.
2006107, 2004 Revenue City of La Quinta
020
14
IL BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 19, 2007
Local Agency Revenue Bonds, 2004 Series A $86,175,000.00
B. FUND BALANCES
Fund As of September 30, 2007
Reserve Fund t'I N/A
(1) The Reserve Fund is funded by a Reserve Account Surety Bond.
III. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2007
will be separately filed with the Nationally Recognized Municipal Securities Information
Repositories and are hereby incorporated by reference into this Annual Continuing
Disclosure 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.
Proiect Area No.1
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (')
Increment
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
3,076,455,691
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
33,867,116
2005/06
3,956,642,179
29,248,534
0
3,985,890,713
3,786.492,480
45,632,751
2006/07
4,779,973,573
34,084,343
0
4,814,057,916
4,614,659,683
52,536,879
2007/08
5,210,779,209
34,173,241
0
5,244,952,450
5,045,554,217
N/A
(1) The Base Value for the Project Area No. 1 is $199,398,233.
Source: Riverside County and Audited Financial Statements of the La Quints Redevelopment Agency.
021
2006107, 2004 Revenue City of La Quints
15
PROJECT AREA NO. 2
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (r)
Increment
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
17,546,203
2005/06
2,080,975,290
32,295,383
0
2,113,270,673
2,018,087.918
24,812,367
2006/07
2,420,689,543
42,208,337
0
2,462,897,880
2,367,715,125
25,971,446
2007/08
2,724,518,603
50,446,080
0
2,774,964,683
2,679,781,928
N/A
(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.
Total Taxable
Gross Tax
Housing
Fiscal Year
Value
Increment
Set Aside
1997/98
$1,396,497,378
$12,161,894
$2,432,379
1998/99
1,445,536,682
12,877,280
2,575,456
1999100
1, 635, 613, 531
15,659,371
3,131, 874
2000101
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
2004/05
3,985,890,713
33,867,116
6,773,423
2005/06
4,814,057,916
45,632,751
9,126,550
2006/07
5,244,952,450
52,536,879
10,507,377
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
Fiscal Year
Total Taxable
Value
Gross Tax
Increment
Housing
Set Aside
1997M
$487,998,819
$4,107,340
$821,468
1998199
663,669,127
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
2004/05
2,113,270,673
17,546,203
3,509,241
2005/06
2,462,897,880
24,812,367
4,962,474
2006/07
2,774,964,683
25.971.446
5,194,289
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the
Statement of Indebtedness filed with the Riverside County Auditor -Controller's
Office.
2006/07, 2004 Revenue City of La Quinta 3 lJ GG
M
C. LAND USE
PROJECT AREA NO. 1
Land Use
2007/08 Total
Secured Value
Percent
of Total
Residential
$4,532,496,798
82.51%
Commercial
594,635,516
10.82%
Timeshare Estates
28,018,895
0.51%
Vacant
302,198,291
5.50%
Miscellaneous/Unknown
36,117.206
0.66%
Total Project Area No. 1 $5,493,466,706 100.00%
PROJECT AREA NO.2
Land Use
2007100 Total
Secured Value
Percent
of Total
Residential
$2,096,584,021
77.83%
Commercial
468,059,737
17.38%
Apartments
36,287,522
1.35%
Vacant
52,858,938
1.96%
Miscellaneous/Unknown
40,033,697
1.49%
Total Project Area No. 2 $2,693,823,915 100.00°/0
Source: County of Riverside 2007/08 Secured Property Roll, as compiled by MuniFinancial.
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.
1994 Bonds Total Debt
Debt Service Payable
Fiscal Debt Service Service From Housing Housing Debt Service
Year Payment Payment t11 Set -Aside Set -Aside (2) Coverage
2003104 $1,352,853 $490,521 $1,843,374 $9,023,407 4.89
2004/05 5,183,006 490,771 5,673,777 10,282,664 1.81
2005/06 5,945,956 490,728 6,225,306 14,086,024 2.18
2006/07 5,950,356 491,050 6,441,406 15,701,666 2.44
(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.
2006107. 2004 Revenue
City of La Quinta
023
`N
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 11l Principal Interest Debt Service Combined
2007
$491,050.13
$1,570,000
$2,190,178.13
$5,950,366.25
$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
$2.943.689.49
$87,746.000
$39.396,806.37
$166,538,612.60
$169,482,301.99
(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.
024
2006107, 2004 Revenue City of La Quinta
`1
F. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. None of the items below has occurred or
has been previously reported during the fiscal year ended June 30, 2007.
1. Principal and interest payment delinquencies on the Bonds.
2. Non-payment related defaults.
3. Unscheduled draws on debt service reserves reflecting financial difficulties.
4. Unscheduled draws on credit enhancements reflecting financial difficulties.
5. Substitution of credit or liquidity providers, or their failure to perform.
6. Adverse tax opinions or events affecting the tax-exempt status of the
security.
7. Modifications to rights of security holders.
8. Contingent or unscheduled bond calls.
9. Defeasances.
10. Release, substitution, or sale of property securing repayments of the
securities.
11. Rating changes.
n2s
2006107, 2004 Revenue City of La Quinta
19