2011 11 15 FAOF'CK�'9
FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
REGULAR MEETING
TUESDAY. NOVEMBER 15. 2011 AT 4:00 P.M.
Beginning Resolution No. FA 2011-005
CALL TO ORDER
Roll Call:
Board Members: Evans, Franklin, Henderson, 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 MEETING MINUTES OF OCTOBER 18, 2011
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 SEPTEMBER 30, 2011
4
FINANCING AUTHORITY AGENDA 1 NOVEMBER 15, 2011
001
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED
SEPTEMBER 30, 2011
3. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA
FINANCING AUTHORITY 1996 LEASE REVENUE REFUNDING BONDS, 2004
LOCAL AGENCY REVENUE BONDS AND 2011 LOCAL AGENCY
SUBORDINATED TAXABLE REVENUE BONDS FOR FISCAL YEAR END JUNE
30, 201 1
4. APPROVAL OF AN APPROPRIATION FOR CAPITAL PROJECTS FROM THE
PROCEEDS OF THE 2011 FINANCING AUTHORITY AND 2011
REDEVELOPMENT AGENCY BOND ISSUES'
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 December 20,
2011 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 November
15, 2011, 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 November 9, 2011.
DATED: November 9, 2011
V����
VERONICA J. ONTECINO, City Clerk
City of La Quinta, California
FINANCING AUTHORITY AGENDA 2 NOVEMBER 15, 2011
Public Notice
Any writings or documents provided to a majority of the Financing Authority regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
003
FINANCING AUTHORITY AGENDA 3 NOVEMBER 15, 2011
o� 4 Xrvaumrcu
cFM OF
AGENDA CATEGORY:
COUNCIL/RDA MEETING DATE: November 15, 2011 BUSINESS SESSION:
ITEM TITLE: Receive and File Transmittal of CONSENT CALENDAR:
Treasurer's Report dated September 2011 STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
It is recommended the La Quinta Financing Authority:
Receive and file.
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
004
� 4 lwQww&rr,
COUNCIL/RDA MEETING DATE: November 15, 2011
ITEM TITLE: Receive and File Transmittal of Revenue
and Expenditure Report dated September 2011
RECOMMENDATION:
Receive and File.
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: Z'
STUDY SESSION:
PUBLIC HEARING:
Transmittal of the September 2011 Statement of Revenue and Expenditures for the
La Quinta Financing Authority.
Respectfully submitted,
A4VV tt
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures, September 2011
11, 005
H 1 1 AU NIVICIV 1 I
LA GUINTA FINANCING AUTHORITY 07/01/2011 - ON3012011
REVENUE DETAIL ADJUSTED REMAINING %
BUDGET RECEIVED BUDGET RECEIVED
Contractual Services Fees
11,600.00
0.00
11,600,00
0.000%
Non Allocated Interest
0.00
155.00
(155,00)
0."%
Rental Income
673,521,00
0.00
673,521,00
0.D00%
Transfer In
7479 250.D0
4 363 813.27
3,115,436,73
58 350%
TOTAL DEBT SERVICE
8,164, 371.00
4,363,968.27 L
3SW 402,73
53450%
CAPITAL IMPROVEMENT REVENUE:
Pcoled Cash Allocated Interest
0.00
0.00
0.00
0.000%
Non Allocated Interest
0.00
0.00
0.00
0,000%
TOTAL CIP REVENUE
0.00
0.00
0.00
0.000%
TOTAL FINANCING AUTHORITY 8,164,371.00 4,363,958.27 3,80.40273 53.450%
o
2
LA QUINTA FINANCING AUTHORITY
ADJUSTED
09/30H1
REMAINING
EXPENDITURE SUMMARY
BUDGET
EXPENDITURES
ENCUMBERED
BUDGET
DEBT SERVICE EXPENDITURES
SERVICES
11,E0000
5,441.36
0,00
6,158,64
BOND PRINCIPAL - 1996
445,OD000
0.00
0.00
445.000.00
BOND PRINCIPAL -2004
1,805,000.00
1,805,000.00
O.OD
0.00
BOND PRINCIPAL -2D11
0.00
0.00
0.00
0.00
BOND INTEREST -19%
228,621,00
0.00
O.DO
228,521.00
BOND INTEREST - 2004
4,099,719.00
2,070,165.63
0.00
2,029,553.37
BOND INTEREST - 2011
1,574,531.00
488,647,64
0.00
1,DB5,883.36
TRANSFER OUT
0.00
0.00
0.00
0,00
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT EXPENDITURES
BOND ISSUANCE COSTS
0.00
000
000
0.00
TRANSFER OUT
0,00
000
0,00
0.00
TOTAL CAPITAL IMPROVEMENT
TOTAL FINANCING AUTHORITY
p 007
3
ceity/ 4 4v Qumrcu
AGENDA CATEGORY
COUNCIL/RDA MEETING DATE: November 15, 2011 BUSINESS SESSION:—
ITEM TITLE: Approval of Annual Continuing Disclosure CONSENT CALENDAR:
for the La Quinta Financing Authority 1996 Lease STUDY SESSION:
Revenue Refunding Bonds, the 2004 Local Agency
Revenue Bonds, and 2011 Local Agency PUBLIC HEARING:
Subordinated Taxable Revenue Bonds for Fiscal Year _
End June 30, 2011
RECOMMENDATION:
Approve, receive and file the Annual Continuing Disclosure for the La Quinta
Financing Authority 1996 Lease Revenue Refunding Bonds, the 2004 Local Agency
Revenue Bonds, and the 2011 Local Agency Subordinated Taxable Revenue Bonds
for Fiscal Year End June 30, 2011.
FISCAL 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.
3. Prepare announcements of the significant events including payment
defaults, defeasances and draws on a reserve fund as the events occur.
11�
Attachment 1 is the Fiscal Year 2010-2011 Annual Continuing Disclosure
Statement for the La Quinta Financing Authority 1996 Lease Revenue Refunding
Bonds, the 2004 Local Agency Revenue Bonds, and the 2011 Local Agency
Subordinated Taxable Revenue Bonds prepared in accordance with the three
aforementioned requirements. Additionally, no announcement of significant events
was necessary for Fiscal Year 2010-201 1.
It is important to note that the Agency has continued to pay debt service to the
bondholders who invested in these three bond issues..
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, the 2004 Local
Agency Revenue Bonds, and the 2011 Local Agency Subordinated Taxable
Revenue Bonds for Fiscal Year End June 30, 2011; or
2. Do not approve, receive and file the Annual Continuing Disclosure for the La
Quinta Financing Authority 1996 Lease Revenue Refunding Bonds, the 2004
Local Agency Revenue Bonds, and the 2011 Local Agency Subordinated
Taxable Revenue Bonds for Fiscal Year End June 30, 2011; or
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
.'p 009
Attachment: 1. Fiscal Year 2010-2011 Annual Continuing Disclosure
Statements for the La Quinta Financing Authority
r� 010
N I I M%11 11VI"M I I
LA QUINTA FINANCING AUTHORITY
$8,790,000
1996 LEASE REVENUE REFUNDING BONDS
(LA QUINTA CITY HALL PROJECT)
Riverside County, California
Dated: November 16, 1996
Base CUSIP*: 50419R
2011 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 15, 2011
Also available at:
nwmw SWAM
www.wilidan.com
+ Copyright, American Banker's Association. CUSIP data is provided by Standard and Poors, CUSIP Service Bureau, a
division of The McGraw-Hill Companies, Inc. This data is not Intended to create a database and does not serve in arty way
as a substitute for the CUSIP service. The issuer takes no responsibility for the accuracy of such number.
» Oil
LIST OF PARTICIPANTS
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760) 777-7150
Willdan Financial Services'
Temecula, California 92590
(951)587-3500
Report available for viewing
www.wilidan.com
Miller & Schroeder Financial, Inc.
Rutan & Tucker, LLP
Costa Mesa, California
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 24th Floor
Los Angeles, California 90071
(2.13)615-6047
• In its role as Disclosure Consultant and Dissemination Agent, Willdan Financial Services has not passed upon me
accuracy, completeness or faimess of the statements contained herein.
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 35.31 square miles, is
located in the Coachella Valley, 20 miles from Palm Springs and 120 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 Agreement.
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.
2010111— 1996 Lease Rev City of La Quints
•-a 013
It. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 31, 2011
1996 Lease Revenue Bonds $3,895,000
B. FUND BALANCES
Fund As of October 31, 2011
Reserve Fund t'r $689,350
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by National Public Finance Guarantee
Corporation.
111. FINANCIAL INFORMATION
The audited financial statements for the City for the fiscal year ended June 30, 2011
and the Adopted Budget for fiscal year 2011/12 will be separately filed with the
Electronic Municipal Market Access website ("EMMA") 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 &
June 30
Government
Safety
Works
Service
Development
2007
$5,246,378
$15,634,761
$5.019,859
$2,994,586
$1,384.466
2008
6,566,585
17,142.443
5,075,195
2,914,422
1,209,935
2009
6,266,263
18,905,111
4,667,193
2,989,567
1,367.350
2010
5,697,766
19,921,752
4,870,691
2,773,467
1,355,177
2011
5,215,632
19,826,372
2,872,507
2,455.551
1.543,188
2010111 — 1996 Lease Rev City of La Quints
ors
B. GENERAL FUND REVENUE BY SOURCE
Fiscal Year Licenses
Charges
Ending and Inter-
for
June 30 Taws Permits Governmental
Services
Interest
Miscellaneous
Total
20o7 $21,594,996 $2,788,882 $7,400,101
$1,544,190
$5.188,103
$504,144
$39,020,416
2008 22,665,855 2,107,035 9,142,554
1,213,519
5,239,552
668,471"1
41,036,986
2009 20,687,205 871,167 8.907,566
663,738
4,196,101
556,32612)
35,882,103
2010 19,730,707 472,409 12,641,162
478,716
3,601,495
522,0690)
37,446,558
2011 20,321,573 547,071 13,034,944
494,611
2,998,856
490,15114i
37.887.206
0) Includes Contribution from property owners of $154,417 and Fines
and forfeitures
of $359,114.
121 Includes Fines and forfeitures of $434,635.
(3) Includes Fines and forfeitures of $395,823.
141 Includes Fines and forfeitures of $327,751.
C. PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year
Ending
June 30
Total
Tax
Levy
Current
Tax
Collection
Percent
of Levy
Collected
Collections In
Subsequent
Years
Total
Collections
to Tax Levy
2007
$74,170,170
$83,797,365.
112.98%
$1,802,076
115.41.%
2008
83,018,429
87,804,912
105.77%
3,216,547
109.64%
2009
83,934,188
86,721,572
103.32%
1,471,940
105.07%
2010
78,621,410
80,651,874
102.58%
434,643
103.14%
2011
72,735,079
74,047,640
101.80%
259,209
102.16%
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
Assessed
Net
Fading
Secured
Unsecured
Property
Less
Taxable
June 30
Property
Property
Value
Exemptions
Value
2007
$9,986,151,525
$88,740,840
$10,074,892,365
($99,245,721)
$9,975,646,644
2008
11,854,669,637
101,433,002
11,956,102,639
(89,688,505)
11,866,414,134
2009
12,410,626,893
113,185,065
12,523,811,958
(107,777,195)
12,416,034,763
2010
11,742,665,902
121.272,880
11,863,938,782
(110,752,890)
11,753,185,892
2011
10.913,083,169
118,972,704
11.032,055,873
(161.266.140)
10,870,790,733
Source: County of Riverside Auditor -Controller
2010111-1996 Lease Rev Cityof La Quints i 3
•.* q:" 0� 5
E. SCHEDULE OF DIRECT AND OVERLAPPING DEBT
City Assessed Valuation
Redevelopment Agency Incremental Valuation
Total Assessed Valuation
Source: Riverside County Auditor Controller
Overlapping Debt Repaid with Property Taxes And Assessments:
Desert Community College District
Coachella Valley Unified School District
Desert Sands Unified School District (DSUSD)
Coachella Valley County Water District I.D. No. 55
Coachella Valley County Water District I.D. No. 58
DSUSD Community Facilities District No. 1
City of to Quinta 1915 Act Bonds
Coachella Valley Water District Assessment District No. 68
Total overlapping debt repaid with property taxes
Overlapping Other Debt including Certifications of Participation (COP)
Riverside County General Fund Obligations
Riverside County Pension Obligations
Riverside County Board of Education COP
Coachella Valley Unified School District COP
DSUSD COP
Coachella Valley County Water District I.D. No. 71 COP .
Coachella Valley Recreation and Park District COP
Total overlapping other debt
Total overlapping debt
City direct debt
Total direct and overlapping debt
$ 4,166,815,030
6,703,975,703
$ 10,870,790,733
Percentage
Applicable s
8.08%
3S.25%
7.55%
85.89%
6.40%
100.OD%
100.0D%
86.25%
1.79%
1.79%
1.79%
35.25%
7.55%
11.71%
13.34%
Outstanding
Debt 6/30/11
$ 322,389,659
112,854,786
260,875,460
3,270,OD0
1,540,0D0
1,750,000
950,000
1,975,000
705,604,905
$ 696,634,853
366,945,000
6,170,000
50,320,000
62,005,000
2,750,000
2,340,000
1,187,164,853
1,892,769,758
Notes:
r 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 govemmental unit's
taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping govemments 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 bome by the residents
and businesses of the City. This process recognims that, when considering the Cws 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 govemment.
Source: California Municipal Statistics, Inc: overlapping debt.
Source: City of to Quima - City Direct debt.
2010111-1996 Lease Rev - Gty of La Quints
Estimated
Share of
Overlapping
Debt
$ 26,032,965
39,795,926
19,688,271
2,808,570
98,498
1,750,000
950,OD0
1,703,379
92,817,SO8
$ 12,469,764
6,568,316
110,443
17,739,913
4,679,517
321,915
312,203
42,201,971
135,019,479
257,522,628
$ 392,542,107
-.A. .
016
F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2011)
Net Assessed Valuation $10,870.790,733
Debt Limit -15 % of Assessed Valuation 1,630,618,610
Amount of Debt Applicable to Debt Limit 0
Legal Debt Margin $1,630,618,610
Note: 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 Quints has no general bonded indebtedness.
G. REVENUE BOND COVERAGE
Local Agency Revenue Bonds (City Hall Project)
Fiscal
Debt Service Requirements
Year
Ending
Revenue Available
June 30
for Debt Service
Principe!
Interest
Total
Coverage
2007
$678,865
$345,000
$333,865
$678,865
1.00
2008
675,880
360,000
315,880
675,880
1.00
2009
676,450
380,000
296,450
676,450
1.00
2010
675,280
400,000
275,280
675,280
1.00
2011
672,525
420,000
252,525
672,525
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 2011
City Land (Sq. Miles)
(3)
35.31
Population
(1)
37,836(5)
Median Household Income (in dollars)
(4)
$104,410
Number of Dwelling Units
(3)
23,528
Persons per Household
(3)
2.549
Average Income per person per household
$40,961
Labor Force
(2)
14,400
Employment
(2)
13,300
Unemployment Rate
(2)
7.64%
Median Age
(4)
41.5,
t'r State of California Department of Finance - January 1 of each year.
t`r State of California Economic Development Department wabshe .
t'r City of La Quints Building B Safety and Community Development Departments.
ton Hdl-Coren 8 Cone Companies.
t'l The population number was updated based upon the 2010 United States
Census.
_ 1 2010111— 1996 Lease RevCity of La Quints - - - 5
J.
PRINCIPAL TAXPAYERS (JUNE 30, 2011)
Taxpayer
Taxable
Assessed Value
Percent of Total
City Taxable
Assessed Value
KSL Desert Resort, Inc.
$144,680,362
1.33%
TD Desert Development
105,099,843
0.97%
MSR Resort Golf Course
71,369,895
0.66%
East of Madison LLC
63,614,331
0.59%
Coral Option 1 LLC
42,259,153
0.39%
Inland American La Quints Pavilion
42,230,554
0.39%
WRM La Quints
37.689,411
0.35% -
Griffin Ranch
36,725,785
0.34%
Village Resort
34,403,510
0.32%
ND La Quinta Partners
31,884,196
0.29%
Total
$609,957"
6.61%
Note: The amounts shown above include assessed value data for bath the City and Redevelopment
Agency. Figures may not add due to rounding.
MAJOR EMPLOYERS (JUNE 30, 2011)
Employer
Employees
ActIvIty
La Quints Resort & Club
1,171
Hotel & Golf Resort
Desert Sands Unified School District
921
Government
Wal-Mart Super Center
358
Retailer
Home Depot
170
Retailer
Hideaway
114
Golf Resort
Lowe's Home Improvement
145
Retailer
Tradition Golf Club
101
Grocery Store
NO La Quints Partners LLC
90
Real Estate Development
City of La Quints
94
Government
Ralphs
67
Grocery Store
Total Employment Listed
3,231
Total City Employment — July 1 13,300
City of La Quints 6
2010,11— 1996 Lease Rev
r r.�
K.
SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2011)
Company
Policy -
Name
Number
Coverage
Limits
Term
Premium
Hartford
- 72BPEEW0254
Employee Dishonesty,
$1,000,000
12/03/10 - 12/03/11
$3,224
Forgery, Computer
Fraud
Lexington
20412656
All Risk Property
64,497,900
7/01/11 — 7/01112
57,883
Insurance Including
Auto Physical
Damage, Terrorism,
Boiler & Machinery
(Excluding
Earthquake)
Lloyds
750020221-L-00
Earthquake/Flood,
20,000,000
-
2107/11 — 2/07/12
123,060
Real & Personal
-
Property Including
Contingent Tax
Interruption
California
Comprehensive
$50 Million
7/01/10 — 7/01111
365,209
Joint Powers
N/A
General Liability
Single Limit per
Insurance
Occurrence
Authority
California
Worker's
10,000,000
7/01/10 — 7/01/11
109,414
Joint Powers
WA
Compensation
Insurance
Authority
Alliant
PECO011896301
Pollution Liability
10,000,000
7101/11—7/01/14
26,227
2010111-1996 Lease Rev - - City of La Quinta - - 7
_• 019
L. CASH AND INVESTMENTS (JUNE 30, 2011)
Cash and investments as of June 30, 2011, are classified in the accompanying financial
statements as follows:
Statements of Net Assets
Cash and investments $ 144,502,573
Cash with fiscal agent 45,298,094
Statements of Fiduciary Net Assets:
Cash and investments 521,192
Total cash and investments $ 190,321,859
Cash and investments as of June 30, 2011, consist of the following:
Cash on hand
$ 1,550
Deposits with financial institutions
275,679
Investments
190,044,630
Total cash and investments
$ 190,321,859
M. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. The City has no knowledge that any of the
events listed below have occurred or have not been previously reported during
the fiscal year ended June 30, 2011.
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.
2010111-- 1996 Lease Rev City of Le Quints
LA QUINTA FINANCING AUTHORITY
$90,0000000
LOCAL AGENCY REVENUE BONDS
2004 SERIES A
Riverside County, California
Dated: June 29, 2004
Base CUSIP": 50420A
2011 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 15, 2011
Also available at:
AN
Serv,m
www.vAlldan.com
+ Copyright, American Bankers Association. CUSIP data is provided by Standard and Poors, CUSIP Service Bureau, a
division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does rat serve in arty way
as a substitute for the CUSIP service. The Issuer takes no responsibility for the accuracy of such number.
-% 021
LIST OF PARTICIPANTS
John Falconer
Finance Director
P.O. Box 1504
78495 Calle Tampico
La Quinta, California 92247
(760)777-7150
Willdan Financial Services
Temecula, CA 92590
(951)587-3500
Report available for viewing @
www.wilidan.com
Wedbush Morgan Securities
Rutan & Tucker LLP
Costa Mesa, California
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5' Street, 24' Floor
Los Angeles, California 90071
(213) 615-6047
In its role as Disclosure Consultant and Dissemination Agent, Willdan Financial Services has not passed upon the
accuracy, completeness or fairness of the statements contained herein.
022
L INTRODUCTION
Pursuant to an Official Statement dated June
"Authority") issued $90,000,000 Local Ager
Bonds") to provide a loan to the La Quinta I
affordable low and moderate housing in or of
Areas No. 1 and 2 (collectively the "Redeu
Agency's Redevelopment Project Areas No.
The 2004 Bonds were sold by the Agency
preserving the supply of low and moderate inc
The City of La Quinta, (the "City") which t
located in the Coachella Valley, 20 miles from
Redevelopment Project Area No. 1 (the "F
approximately 11,475 acres, which includes
City. Redevelopment Project Area No. 2 (the
approximately 3,130 acres north of Project .
eliminate or reduce the many instances of ecc
within the boundaries of the Redevelopment Pi
The 2004 Bonds are special obligations of the
Set -Aside Tax Revenues, as defined in tl
outstanding Tax Allocation Refunding Bonds, 1
debt service on which is payable prior to the
deposited in the Project Area No. 1 Low and
also issued the Local Agency Subordinate Ta)
Bonds") which are payable from Tax Revenue
Bonds. The 2004 Bonds are not a debt of the
subdivisions and neither the City, the State of
liable. The 2004 Bonds do not constitute indeh
or statutory debt limit or restriction.
This Annual Continuing Disclosure Informati
covenant made by the Agency for the benefit c
information specified in a Continuing Disclosur
complete description of the Agency and the
Statement.
The information set forth herein has been fur
believed to be accurate and reliable but is r
Statements contained in this Annual Continuir
estimates, forecasts, or other matters of opini
are intended solely as such and are not to be
information and expressions of opinion conte
and the delivery of this Annual Continuing Di;
circumstances, create any implication that I
Agency or any other parties described herein.
, 2004, the La Quinta Financing Authority (the
Revenue Bonds, 2004 Series A (the "2004
evelopment Agency (the "Agency") to finance
ieft to the Community Redevelopment Project
:)ment Projects") and to advance refund the
id No. 2, 1995 Housing Tax Allocation Bonds.
the purpose of increasing, improving and/or
e housing within the Redevelopment Projects.
ses approximately 35.31 square miles, is
Springs and 120 miles from Los Angeles.
Area No. 1") encompasses an area of
Kimately 50.7% of the current area of the
ect Area No. 2") encompasses an area of
No. 1. The objective of the Agency is to
physical or social blight presently. existing
lency and are secured by a pledge of Housing
Official Statement. The Agency also has
tries 1994 (the "1994 Bonds"), a portion of the
104 Bonds from Tax Revenues required to be
loderate Income Housing Fund. The Authority
ale Revenue Bonds, 2011 Series A (the "2011
on a subordinate basis to the 1994 and 2004
ty, the State of California, or any of its political
alifornia, nor any of its political subdivisions is
dness within the meaning of any constitutional
i Statement is being provided pursuant to a
the holders of the 2004 Bonds and includes the
Agreement. For further information and a more
'004 Bonds, reference is made to the Official
ihed by the Agency and by sources, which are
: guaranteed as to accuracy or completeness.
Disclosure Information Statement which involve
i, whether or not expressly so described herein,
)nstrued as representations of fact. Further, the
9d herein are subject to change without notice
)sure Information Statement will not, under any
ire has been no change in the affairs of the
2010111, 2004 Revenue - City or La Iuinta
023
II. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 31, 2011
Local Agency Revenue Bonds, 2004 Series A $79,345,000
B. FUND BALANCES
Fund As of October 31, 2011
Reserve Fund "1 $5,950,357
(1) The Reserve Fund is funded by a Reserve Account Surety Bond issued by the Ambac Assurance Corporation.
Ill. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2011
will be separately filed with the Electronic Municipal Market Access website ("EMMA")
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.
Prolect Area No.1
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Bross Tax
Year
Value
Value
Value
Value
Above Base (1)
Increment
2007/08
$5,210,779,209
$34,173,241
$0
$5,244,952,450
$5,045,554,217
$54,346,390
2008109
5,245,952,426
35.019,471
0
5,280,971,897
5,081,573,664
50,649,225
2009/10
4,913,325,225
36.007,022
0
4,949,332,247
4,749,934,014
48,147,236
2010/11
4,517,918,665
35,791,524
0
4,553,740,189
4,364,311,956
43,990,589
2011/12
4,248,567,040
31,655,376
0
4.280,222,416
4,080,824,183
N/A
(1) The Base Value for the Project Area No. 1 is $199,398,233.
Source: California Munidpal Statistics, Inca and Audited Financial Statements of the La Quints
Redevelalmenn Agency.
2010111, 2004 Revenue GtyofLa.Quints - 2-
."§ 024
PROJECT AREA NO.2
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (')
Increment
2007/08
$2,724.518,603 .
$50,446,080
$0
$2,774,964,683
$2,679,781,928
$28,859,688
2008/09
2,804,622,207
62,385,290
0
2,867,007,497
2,771,824,742
28,479,642
2009/10
2,599,130,531
65,575,780
0
2,664,706,311
2,569,523,556
25,953,975
2010/11
2,424,915,500
60,334,289
0
2,485,249,789
2,390,067,034
24,186,295
2011/12
2.360,463,457
57,899,939
0
2.418,363,396
2,323,180,641
N/A
(1) The Base Value for the Project Area No. 2 is $95,182,755.
Source: California Municipal Statistics, Inc. and Audited Financial Statements of the La Quints
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
IHousing
Fiscal Year
Value
Increment
Set Aside
2006/07
$4,814,057,916
$52,536,879
$10,507,377
2007/08
5,244,952,450
54,345,390
10,869,078
20D8/09
5,280,971,897
50,649,225
10,129,845
2009/10
4.949,332,247
48,147,236
9,629,447
2010/11
4,553,710,189
43,990,589
8,798,118
Source: Audited Financial Statements of the
La Quima Redevelopment Agency and the
Statement of Indebtedness sled with the
Riverside County AudNorCadrollers Office.
PROJECT AREA NO.2
Total Taxable Gross Tax Housing
Fiscal Year Value Increment Set Aside
2006/07
$2,462,897,880
$25,971,446
$5.194,289
2007/08
2,774,964,683
28,859,688
5,771,938
2008/09
2,867,007,497
28,479,642
5,695,928
2009/10
2.664,706,311
25,953.975
5,190,795
2010/11
2,485,249,789
24,186,295_
.4,837,259
Source: Audited Financial Statements of the La Quinta Redevelopment Agency and the
Statement of Indebtedness filed with the Riverside County Auditor -Controllers Office.
. 2010111,2004 Revenue City of La Quints - 3
025
C. LAND USE
PROJECT AREA NO. 1
2011/12 Total
Percent
Land Use
Secured Value
of Total
Residential
$3,667,157,161
86.32%
Commercial
313,666,858
7.38%
Vacant
226,548,554
5.33%
Timeshare
39,653,381
0.93%
Miscellaneous
1,541,086
0.04%
_ Total Project Area No.1
$4,248,667,040
100.00%
Source: California Municipal Statistics, Inc
PROJECT AREA NO. 2
2011112 Total
Percent
Land Use
Secured Value
of Total
Residential
$1,749,311,105
74.11%
Commensal
578,461,090
24.51%
Vacant
30,592,669
1.30%
Miscellaneous
2,098,593
0.09%
Total Project Area No. 2
$2,360463,467
100.00%
Source: California Municipal Statistics, Inc
D. TOP LOCAL SECURED TAXPAYERS
The following table sets forth the largest secured taxpayers in Project Area
No. 1 based on the 2011/12 secured property tax roll.
2011/12
Assessed
% of
Property Owner
Land Use
Valuation
Total I+l
KSL Desert Resort
Hotel
$133,688,003
3.15%
Sunrise Desert Partners
Residential
69,108,126
1.63%
MSR Resort Golf Course
Country Club
43,073,125
1.01%
Village Resort
Hotel
20,152,234
0.47%
Lands LP
Apartments
20,150,599
0.47%
Nadador LLC
Timeshare Properties
17.883,704
0.42%
CNL Desert Resort LP
Hotel
16,697,639
0.39%
Quarry at La Quinta Inc.
Hotel
13,696,380
0.32%
LQ Investments
Commercial
13,506,484
0.32%
Old Town La Quints LLC
Commercial
12,597,621
0.30%
Total
$360,653,915
8.49%
(1) 2011/12 Local Secured Assessed Valuation: $4,248,567,040
Source: California Municipal Statistics, Inc.
2010111, 2004 Revenue City of La Quinta "::..-' - 4
,» 026
The following table sets forth the largest secured taxpayers in Project Area
No. 2 based on the 2011/12 secured property tax roll.
2011112
Assessed
% of
Property owner
Land Use
Valuation
Total (1)
Inland American La Quints Pavilion
Commercial
$42,548,545
1.80%
TO Desert Dev, LP _
Commercial
26,116,671
1.11%
WSJ Mart Real Estate Business Trust
Commercial
24,542,785
1.04%
Aventine Development
Apartments
23,372,608
0.99%
Washington 111 Ltd.
Commercial
22.423,817
0.95%
Costoo Wholesale Corp.
Commercial
22,413,886
0.95%
Sam's Real Estate Business Trust
Commercial
20,943,539
0.89%
One Eleven La Quints
Commercial
20,575,705
0.87%
Komar Desert Properties
Commercial
20,330,763
0.86%
Stamko Dev Co.
Commercial
17 041,079
0.72%
Total
$240,309,398
10.18%
(1) 2011/12 Local Secured Assessed Valuation: $2,360,463,457
Source: Calffomia Municipal Statistics, Inc.
_2010111, 2004 Revenue City of La Quints ' - - -5
.� 027
E. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 2004 Bonds and the
portion of debt service for 1994 Bonds and 2011 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
September 1,
1994 Bonds
Debt
Service 4�1
2004 Bonds
Debt Service
2011 Bonds
Debt Service
Total
Combined
2011
$490,911
$5,945.331
$488,648
$6,924,890
2012
490,307
5,949,106
2,171,767
8,611,180
2013
5,949,056
2,691,767
8,640,823
2014
5,950,306
2,692,267
8,642,573
2015
5,946,556
2,692,967
8,639.523
2016
5,947,369
2,689,717
8,637,086
2017
5,947,144
2.691,677
8,638,821
2018
5,945,619
2,693,396
8,639,015
2019
5,947,531
2,690.171
8,637,702
2020
5,947,356
2,692,231
8,639,587
2021
5,949,831
2,694,381
8,644,212
2022
5,949,431
2,691,061
8,640,492
2023
5,945.894
2,690,321
8,636,215
2024
5,948,956
2,689,641
8,638,597
2025
5,947,831
2,693,641
8,641,472
2026
5,946,331
2,691,561
8,637,892
2027
5,945,831
2,693,401
8,639,232
2028
5,945,831
2,689,651
8,635,482
2029
5,945,831
2,693,396
8,639,227
2030
5,950.331
2,693,451
8,643,782
2031
5.947,788
2,689,421
8,637,209
2032
5,948,200
2,690,911
8,639,111
2033
5,945,800
2,693.634
8,639,434
2034
5,950,075
2,694,251
8,644,326
2035
2,691,957
2,691,957
(1) Represents the 18.5% of annual debt service on the 1994 Bonds to viNch the Agency has allocated Housing Set -Aside
revenue derived from Project Area No. 1.
2010111, 2004 Revenue I- � City of La Quinta 6
F. DEBT SERVICE COVERAGE
The following table sets forth the bond year debt service for the 2004 Bonds and
the portion of debt service on the 1994 Bonds and 2011 Bonds payable from
Housing Set -Aside revenue.
1994
Total Debt
Bonds
2011
Service
2004 Bonds
Debt
Bonds
Payable
Debt
Service
Debt
From Debt
Fiscal Year Service
Payment
Service
Housing Housing Service
Sept.1 Payment
(1)
Payment
Set -Aside Set -Aside (2) Coverage
2006/07 $5,950,356 $491,050
$6.441,406
$15,701,666
2.44
2007/08 5,948,256 490,676
6,438,932
16,641,016
2.58
2008109 5,946,731 490,465
6,437,196
15,825,773
2.46
2009/10 5,949,931 490,280
6,440,211
14,820,242
2.30
2010/11 5,945,331 490,911 $488,648
6,924,890
13,635,377
1.97
(1) Represents the 18.5% portion of annual debt service on the IM 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.
G. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported if they are deemed material. The Authority has no knowledge that any
of the events listed below have occurred or have not been previously reported
during the fiscal year ended June 30, 2011.
1. Principal and interest payment delinquencies on the 2004 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.
: 2010/11, 2004 Revenue - .. Ciry of La Quinta - - - . 7
�� 029
LA QUINTA FINANCING AUTHORITY
$28,850,000
LOCAL AGENCY SUBORDINATE
TAXABLE REVENUE BONDS
2011 SERIES A
Riverside County, California
Dated: June 14, 2011
Base CUSIP": 50420A
2011 ANNUAL CONTINUING DISCLOSURE
INFORMATION STATEMENT
As of November 15, 2011
Also available at
Faenow eery m
www.vAlidan.com
+ CoW1W, American Banker's Association. CUSIP data is provided by Standard and Pooes, CUSIP Service Bureau, a
.. division of The McGrw"lll Companies, Inc. This data Is not Intended to create a database and does not serve In any way
as a substitute for the CUSIP service. The issuer takes. no responsibility for the accuracy of such number.
• 030
LIST OF PARTICIPANTS
John Falconer
Finance Director
P.O. Box 1504
78-495 Calle Tampico
La Quinta, California 92247
(760) 777-7150
Willdan Financial Services
Temecula, CA 92590
(951) 587-3500
Report available for viewing @
www.wilidan.com
Wedbush Morgan Securities Inc.
Solana Beach, California
Rutan & Tucker LLP
Costa Mesa, California
Brad Scarbrough
U.S. Bank Trust, N.A.
633 West 5th Street, 20 Floor
Los Angeles, California 90071
(213) 615-6047
' In its, role as Disclosure Consultant and Dissemination Agent, Willdan Financial Services has not passed upon the
accuracy, completeness or fairness of the statements contained herein.
•..• 031
L INTRODUCTION
Pursuant to an Official Statement dated June 9, 2011, the La Quinta Financing Authority (the
"Authority") issued $28,850,000 Local Agency Subordinate Taxable Revenue Bonds, 2011
Series A (the "2011 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"). The
2011 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 City of La Quinta, (the "City") which comprises approximately 35.31 square miles, is
located in the Coachella Valley, 20 miles from Palm Springs and 120 miles from Los Angeles.
Redevelopment Project Area No. 1 (the "Project Area No. 1") encompasses an area of
approximately 11,475 acres, which includes approximately 50.7% of the current area of the
City. Redevelopment Project Area No. 2 (the "Project Area No. 2") encompasses an area of
approximately 3,130 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 2011 Bonds are special obligations of the Agency and are secured by a pledge of Housing
Set -Aside Tax Revenues on a subordinate basis to the Agency's previously issued La Quinta
Redevelopment Project, Tax Allocation Refunding Bonds, Series 1994 (the "1994 Bonds") and
the Local Agency Revenue Bonds, 2004 Series A (the "2004 Bonds"), as defined in the Official
Statement. The 2011 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 2011 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 2011 Bonds and includes the
information specified in a Continuing Disclosure Agreement. For further information and a more
complete description of the Agency and the 2011 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.
2010111, 201 1A Revenue City of La Quinta 1
d 032
II. BOND INFORMATION
A. PRINCIPAL OUTSTANDING
Bonds As of October 31, 2011
Taxable Revenue Bonds, 2011 Series A $28,850,000
B. FUND BALANCES
Fund As of October 31, 2011
Reserve Fund $2,694,524
Reserve Requirement $2,694,381
/it. FINANCIAL INFORMATION
The audited financial statements for the Agency for the fiscal year ended June 30, 2011
will be separately filed with the Electronic Municipal Market Access website ("EMMA")
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.
Fiscal
Secured
Unsecured
Utility
Total Taxable
Taxable Value
Gross Tax
Year
Value
Value
Value
Value
Above Base (1)
Increment
2007/08
$5,210,779.209
$34.173,241
$0
$5.244,952,450
$5,045,554,217
$54,345,390
2008/09
5,245,952,426
. 35,019,471
0
5.280,971,897
5,081,573,664
50,649,225
2009/10
4,913,325,225
36,007,022
0
4,949,332,247
4,749,934,014
48.147,236
2010111
4,517,918,665
35,791,524
0
4,553,710.189
4,354,311,956
43,990,589
2011/12
4,248,567,040
31,655,376
0
4,280,222.4161.
4,080.824,183
N/A
(1) The Base Value for the Project Area No. 1 is $199,398,233.
Source: California Municipal Statistics, Inc. and Audited Financial Statements of the La Quirds
Redevelopment Agency.
2010111, 2011A Revenue
City of La Quinta
033
AREA NO. 2
Fiscal
Year
Secured
Value
Unsecured
Value
Utility
Value
Total Taxable
Value
Taxable Value
Above Base(1)
Gross Tax
Increment
2007/08
$2,724,518,603
$50,446,080
$0
$2.774,964,683
$2,679,781,928
$28,859,688
2008/09
2.804,622,207
62,385,290
0
2,867,007,497
2,771,824,742
28,479,642
2009/10
2,599,130,531
, 65,575,780
0
2,664,706,311
2,569,523,556
25,953,975
2010/11
2,424,915.500
60,334,289
0
2,485,249,789
2,390,067,034
24,186.295
2011/12
2,360,463,457
57,899,939
0
2,418,363,396
2,323.180,641
N/A
(1) The Base Value for the Project Area No. 2 is $96,182,755.
Source: California Municipal Statistics, Inc. and Audited Financial Statements of the La Quints
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
2006/07
$4,814,057,916
$52,536,879
$10,507,377
2007/08
5,244,952,450
54,345,390
10,869,078
2008/09
5,280,971.897
50,649,225
10,129,845
2009/10
4,949,332,247
48,147,236
9,629,447
2010111
4,553,710,189
43,990,589
8,798,118
Source: Audited Financial Statements of the
Le Quhxa Redevelopment Agency and are
Statement of Indebtedness filed with sue
Riverside County Auditor -Controller's Office.
PROJECT AREA NO.2
Total Taxable Gross Tax Housing
Fiscal Year Value Increment Set Aside
2006M7
$2,462,897,880
$25,971,446
$5,194,289
2007/08
2,774,964,683
28,859,688
5,771,938
2008/09
2,867,007.497
28,479,642
5,695,928
2009/10
2,664,706,311
25.953,975
5,190.795
2010/11
2,485,249,789
24.186,295
4,837,259
Source: Audited Financial Statements of the La -Quirda Redevelopment Agency and the
Statement of Indebtedness filed with the Riverside County Auditor -Controller's Office.
2010111, 2011A Revenue City of La Quints 3
034
C. LAND USE
PROJECT AREA NO. 1
2011/12 Total
Percent
Land Use
Secured Value
of Total
Residential
$3,667,157,161
86.32%
Commercial
313,666,858
7.38%
Vacant
226,548,554
5.33%
Timeshare
39,653,381
0.93%
Miscellaneous
1,541,086
0.04%
Total Project Area No.1
$4,248,567,040
100.00%
Source: California Municipal Statistics, Inc
PROJECT AREA NO.2
20111/12 Total
Percent
Land Use
Secured Value
of Total
Residential
$1.749,311,105
74.11%
Commercial
578,461,090
24.51%
Vacant
30,592,669
1.30%
Miscellaneous
2,098,593
0.09%
Total Project Area No. 2 $2,3609463,467 100.00%
Source: California Municipal Statistics, Inc.
D. TOP LOCAL SECURED TAXPAYERS
The following table sets forth the largest secured taxpayers in Project Area
No. 1 based on the 2011/12 secured property tax roll.
2011/12
Assessed
% of
Property Owner
Land Use
Valuation
Total "'
KSL Desert Resort
Hotel
$133,688,003
3.15%
Sunrise Desert Partners
Residential
69,108,126
1.63%
MSR Resort Golf Course
Country Club
43,073,125
1.01 %
Village Resort
Hotel -
20,152,234
0.47%
Lands LP
Apartments
20.150,599
0.47%
Nadador LLC
Timeshare Properties
17,883,704
0.42%
CNL Desert Resort LP
Hotel
16,697,639
0.39%
Quarry at La Quinta Inc.
Hotel
13,696,380
0.32%
LQlnvestments
Commercial
13,506,484
0.32%
Old Town La Quinta LLC
Commercial
12,597,621
0.30%
Total
$360,553.915
8.49%
(1) 2011/12 Local Secured Assessed Valuation: $4,248,667,040
Source: California Municipal Statistics, Inc.
2010111, 201 fA Revenue City of Le Quinta 4
0,35
The following table sets forth the largest secured taxpayers in Project Area
No. 2 based on the 2011/12 secured property tax roll.
2011112
Assessed
% of
Property Owner
Land Use
Valuation
Total (1)
Inland American La Quints Pavilion
Commercial
$42,548.545
1.80%
TD Desert Dev LP
Commercial
26,116,671
1.11%
Wal Mart Real Estate Business Trust
Commercial
24,542,785
1.04%
Aventine Development
Apartments
23,372,608
0.99%
Washington 111 Ltd.
Commercial
22,423,817
0.95%
Costoo Wholesale Corp.
Commercial
22.413,886
0.95%
Sam's Real Estate Business Trust
Commercials
20,943,539
0.89%
One Eleven La Quinta
Commercial
20,575,705
0.87%
Komar Desert Properties
Commercial
20,330,763
0.86%
Stamko Dev Co.
Commercial
17,041,079
0.72%
Total
$240,309,398
10.18%
(1) 2011112 Local Secured Assessed Valuation: $2,360,463,457
Source: California Municipal Statistics, Inc.
201LY11, 2011A Revenue City of La Quints - 5
�� 036
i
E. ANNUAL DEBT SERVICE
The following table sets forth the annual debt service for the 2011 Bonds and the
portion of debt service for 1994 Bonds and 2004 Bonds payable from the
Housing Set -Aside revenue. Information contained in the table below was
gathered and verified from the corresponding Official Statements.
1994 Bonds
Maturity Date Debt 2004 Bonds 2011 Bonds Total
September 1, Service (1) Debt Service Debt Service Combined
2011
$490,911 '$5,945,331
$488,648
$6,924,890
2012
490,307 5,949,106
2,171,767
8,611,180
2013
5,949,056
2,691,767
8,640,823
2014
5,950,306
2,692,267
8,642,573
2015
5,946,556
2,692,967
8,639,523
2016
5,947,369
2,689,717
8,637,086
2017
5,947.144
2,691,677
8,638,821
2018
5,945,619
2,693,396
8,639,015
2019
5,947,531
2,690,171
8,637,702
2020
5,947,356
2,692,231
8,639,587
2021
5,949,831
2,694,381
8,644;212
2022
5,949,431
2,691.061
8.640,492
2023
- 5,945,894
2,690,321
8,636,215
2024
5,948,956
2,689,641
8.638,597
2025
5,947,831
2,693,641
8,641,472
2026
5,946,331
2,691,561
8,637,892
2027
5,945,831
2,693,401
8,639,232
2028
5,945,831
2,689,651
8,635,482
2029
5,945,831
2,693,396
8,639,227
2030
! 5,950,331
2,693,451
8,643,782
2031
15,947,788
2,689,421
8,637,209
2032
5,948,200
2,690,911
8,639,111
2033
5,945,800
2,693,634
6,639,434
2034
.5,950,075
2,694,251
8,644,326
2035
2691,957
2,691,957
2036
-
2:690,943
2,690,943
Total
$981,218 $142,743,338
$67,266,230
$210,990,786
(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 Proied Area No. 1. - 1
2010111, 2011ARevenue - City of La Quints 6.
:.«J 037
F. DEBT SERVICE COVERAGE
The following table sets forth the bond year debt service for the 2011 Bonds and
the portion of debt service on the 1994 Bonds and 2004 Bonds payable from
Housing Set -Aside revenue.
Total Debt
2011
Service
2004 Bonds
1994 Bonds
Bonds
Payable
Debt
Debt
Debt
From Debt
Fiscal Year Service
Service
Service
Housing Housing Service
Sept 1 Payment
Payment "I
Payment
Set -Aside Set -Aside (2) Coverage
2006/07 $5,950,356 $491,050
$6.441,406
$15,701,666
2.44
2007/08 5,948.256 490,676
6,438,932
16,641,016
2.58
2008/09 5,946,731 490,465
6,437,196
15.625,773
2.46
2009/10 5,949,931 490,280
6,440,211
14,820,242
2.30
2010/11 5,945,331 490,911 $468,646
6,924,890
13,635,377
1.97
(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.
2010111, 2011A Revenue City of Le Quints
-.4 038
G. REPORTING OF SIGNIFICANT EVENTS
The Continuing Disclosure Covenants outline the Significant Events that must be
reported in not more than ten (10) Business Days after the occurrence the event,
irrespective of any determination as to whether such event may or may not
be deemed material. The Authority has no knowledge that any of the events
listed below have occurred or have not been previously reported during the fiscal
year ended June 30, 2011.
1. Principal and interest payment delinquencies on the 2011 Bonds.
2. Unscheduled draws on debt service reserves reflecting financial difficulties.
3. Unscheduled draws on credit enhancements reflecting financial difficulties.
4. Substitution of credit or liquidity providers, or their failure to perform.
5. Adverse tax opinions or the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the 2011 Bonds.
6. Defeasances.
7. Tender offers.
8. Bankruptcy, insolvency, receivership or similar proceedings pertaining to the
Authority.
9. Ratings changes.
The Continuing Disclosure Covenants outline the Significant Events that must be
reported in not more than ten (10) Business Days after the occurrence. the event,
if deemed material. The Authority has no knowledge that any of the events
listed below have occurred or have not been previously reported during the fiscal
year ended June 30, 2011.
10. Mergers, consolidations, acquisitions, the sale of all or substantially all of
the assets of the Authority or the dissolution of the Authority.
11. Appointment of a successor or additional Trustee or the change of the
name of the Trustee or any successor or additional Trustee.
12. Non-payment related defaults.
13. Modifications to the rights of Holders.
14. Optional, contingent or unscheduled bond calls, prepayment or redemptions
other than defeasances.
15. Release, substitution or sale of property securing repayment of the 2011
Bonds.
2010/11, 201 fA Revenue City of La Quinta I P 8
039
0
CO '
CF`b OF'RLC�`'
W'� 4 4&Qul^fw
COUNCIL/RDA MEETING DATE: November 15, 2011
ITEM TITLE: Approval of an Appropriation for Capital
Projects from the Proceeds of the 2011 Financing
Authority and 2011 Redevelopment Agency Bond
Issues
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Approve an appropriation of $27,914,288 for capital projects from the proceeds of
the 2011 Financing Authority and 2011 Redevelopment Agency Bond Issues.
FISCAL IMPLICATIONS:
In April of this year, staff presented a report estimating net proceeds of
$68,475,000 that could be funded from four (4) bond issues based upon future
estimated revenue projections. Based upon market conditions and a more
conservative approach, only two (2) bond issues were entered into which
generated $30,711,304 of net proceeds. Of this $30,711,304 (Attachment 1),
$2,797,016 has previously been appropriated and $27,914,288 remains to be
appropriated.
The following table represents staff's recommendation for appropriating these
funds:
Project
Taxable
Project Area No. 2
Non -housing
Taxable
Financing Authority
Housing
Total
Fred Waring Drive & Miles Ave Reconstruction
2,399,786
-
2,399,786
Washington Street Apartments
-
8,614,502
8,514,502
Testa Property Development
10,000,000
10,000,000
Dune Palms Mobile Estates Acquisition
7,000,000
7,000,000
2,399,786
25,514,502
27,914,288
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
On February 15, 2011, the Agency authorized the staff to begin the process to
issue bonds. There are various factors that go into the size of a bond issue, which
ultimately result in the net amount of cash received from the bond proceeds.
These factors include the projected tax increment revenue collections, the rating
given by Standard & Poor's, the interest rate environment in the municipal bond
market, the type of bond issue - tax exempt or taxable, other municipal agencies
issuing debt at the same time, and alternative investments for investors to
consider. The amount of cash that is estimated to be deposited in the first part of
April 2011 was $68,475,000. The actual amount of bond proceeds generated was
$30,711,304.
All Capital Improvement Projects are accounted for in the City Capital Project Fund
(Fund 401). This is done to comply with Government Accounting Standards Board
(GASB) 34 which requires that the City track capital projects and determine if they
should be reported as a fixed asset. The City was an early implementer of GASB
34 in June 30, 2001 and has been using Fund 401 in a similar fashion, even before
GASB 34, since the mid 1990's.
Within Fund 401, individual project budgets are set up to track the expenditures
and the sources of revenue used to pay for the expenditures. Many individual
project budgets have more than one funding source to pay for the costs of the
project. In all cases, the estimated revenue and appropriation amounts for each
individual capital projects must agree which is the case in this report.
Once completed, these assets will be reported in the Comprehensive Annual
Financial Report (CAFR). The CAFR reports the financial activity of the City, the La
Quinta Redevelopment Agency, the La Quinta Housing Authority and the La Quinta
Financing Authority.
FINDINGS AND ALTERNATIVES:
The alternatives available to the La Quinta Financing Authority include:
1. Approve an appropriation .of $27,914,288 for capital projects from the
proceeds of the 2011 Financing Authority and 2011 Redevelopment Agency
Bond Issues; or
2. Do not approve an appropriation of $27,9.14,288 for capital projects from the
proceeds of the 2011 Financing Authority and 2011 Redevelopment Agency
Bond Issues; or
�' " 041
3. Provide staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. April and November 2011 Bond Issue Analysis
4 042
ATTACHMENT 1
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