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2012 12 18 FATwit U QK&M NOF71 FINANCING AUTHORITY AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING on TUESDAY, DECEMBER 18, 2012 AT 4:00 P.M. Beginning Resolution No. FA 2012-003 CALL TO ORDER ROLL CALL: Authority Members: Evans, Franklin, Henderson, Osborne, 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. The Financing Authority values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. MINUTES OF NOVEMBER 20, 2012 CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED OCTOBER 31, 2012 2. ANNUAL CONTINUING DISCLOSURE FOR THE LA QUINTA FINANCING AUTHORITY 1996 LEASE REVENUE REFUNDING BONDS, 2004 LOCAL 1 FINANCING AUTHORITY AGENDA 1 DECEMBER 18, 2012 AGENCY REVENUE BONDS AND 2011 LOCAL AGENCY SUBORDINATED TAXABLE REVENUE BONDS FOR FISCAL YEAR END JUNE 30, 2012 3. LA QUINTA FINANCING AUTHORITY FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 4. RECEIVE AND FILE TREASURER'S REPORT DATED OCTOBER 31, 2012 BUSINESS SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS - NONE ADJOURNMENT f if #•4iF iF•i YiF iY iYi YMiFfiFi YM•••••iF•Y•iYY•YiFYiF4Y# The next regular meeting of the Financing Authority will be held on January 15, 2013, at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Susan Maysels, Authority Secretary of the La Quinta Financing Authority, do hereby declare that the foregoing agenda for the La Quinta Financing Authority meeting was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas and at the Stater Brothers Supermarket 78-630 Highway 111, on December 14, 2012. DATED: December 13, 2012 SUSAN MAYSELS, Authority Secretary La Quinta Financing Authority Public Notices 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. ''w 002 FINANCING AUTHORITY AGENDA 2 DECEMBER 18, 2012 r AGENDA CATEGORY: CITY/SA/HA/VMEETING DATE: December 18, 2012 BUSINESS SESSION: ITEM TITLE: Receive and File Revenues and CONSENT CALENDAR: Expenditures Report dated October 31, 2012 STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: Receive and File EXECUTIVE SUMMARY: Monthly and year-to-date revenues and expenditures of the La Quinta Financing Authority dated October 31, 2012. FISCAL IMPACT: None. BACKGROUND/ANAYLSIS: Receive and File Transmittal of the October 31, 2012 Statement of Revenues and Expenditures for the La Quinta Financing Authority. ALTERNATIVES: None. Respectfully submitted, &-d� &J Robbeyn Bird, Finance Director Attachment: 1. Revenues and Expenditures Report for October 31, 2012 003 LA OUINTA 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 07/01/2012-1013112012 ADJUSTED REMAINING % BUDGET RECEIVED BUDGET RECEIVED 5,000.00 0.00 5,000.00 0.000% 0.00 0.00 0.00 0.000% 673,130.00 578,086.25 95,043.75 85.880% 0.00 0.00 0.00 0.000% 678,130.00 578,086.25 100,043.75 85.250% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 0.00 0.00 0.00 0.000% 678,130.00 578,086.25 100,043.75 85.250% K 004 LA QUINTA FINANCING AUTHORITY ADJUSTED 10/31/2012 REMAINING EXPENDITURE SUMMARY BUDGET EXPENDITURES ENCUMBERED BUDGET DEBT SERVICE EXPENDITURES SERVICES 5.000.00 1.971.00 000 3.029.00 BOND PRINCIPAL - 1996 470.000.00 470,000.00 0.00 0.00 BOND INTEREST - 1996 203,130.00 108,086.25 0.00 95,043,75 TRANSFER OUT 0.00 0.00 0.00 0.00 TOTAL DEBT SERVICE 678.130.00 CAPITAL IMPROVEMENT EXPENDITURES BOND ISSUANCE COSTS 0.00 0,00 0.00 0.00 TRANSFER OUT 0.00 0.00 0.00 0.00 TOTAL CAPITAL IMPROVEMENT TOTAL FINANCING AUTHORITY 005 ceity�' 4 sep QN&M CITY/SA/HA 3 MEETING DATE: December 18, 2012 ITEM TITLE: Annual Continuing Disclosure for the La Quinta Financing Authority 1996 Lease Revenue Refunding Bonds, the 2004 Local Agency Revenue Bonds, and 2011 Local Agency Subordinated Taxable Revenue Bonds for Fiscal Year Ended June 30, 2012 RECOMMENDED ACTION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 2- STUDY SESSION: PUBLIC HEARING: 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 Ended June 30, 2012. EXECUTIVE SUMMARY: In November 1994, the Securities and Exchange Commission adopted Rule 15c2- 12 for bonds issued after July 3, 1995 requiring the City to file disclosure statements annually. Staff is therefore requesting that the City Council approve, receive and file the above mentioned Annual Disclosure Statements. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: On November 10, 1994, the Securities and Exchange Commission amended 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. O 006 Attachment 1 is the Fiscal Year 2011 /2012 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 2011 /2012. It is important to note that the Agency has continued to pay debt service to the bondholders who invested in these three bond issues. ALTERNATIVES: No recommended alternatives at this time. Respectfully submitted, Robbeyn Bir , Financ Director Attachment: 1. Fiscal Year 2011/2012 Annual Continuing Disclosure Statements for the La Quinta Financing Authority 0; 01 LA QUINTA FINANCING AUTHORITY $8,790,000 1996 LEASE REVENUE REFUNDING BONDS (LA QUINTA CITY HALL PROJECT) Riverside County, California Dated: November 15, 1996 Base CUSIP+: 60419R 2012 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT As of December 4, 2012 Also available at Fsunow 5wo es www.wlliden.corn + Copyright, American Banker's Association. CUSIP data Is provided by Standard and Poer's, 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 any way as a substitute for the CUSIP service. The issuer takes no responsibility for the accuracy of such number. LIST OF PARTICIPANTS CITY OF LA QUINTA www.la-quinta.org Robbeyn Bird Finance Director P.O. Box 1504 78495 Calle Tampico La Quinta, California 92247 (760)777-7150 DISCLOSURE CONSULTANT & DISSEMINATION AGENT Willdan Financial Services' Temecula, California 92590 (951)587-3500 Report available for viewing @ www.wilidan.com 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 5th Street, 24th 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. E. a. 009 TABLE OF CONTENTS 1. INTRODUCTION......................................................................................................1 IL BOND INFORMATION............................................................................................ 2 A. PRINCIPAL OUTSTANDING................................................................................ 2 B. FUND BALANCES................................................................................................ 2 Ill. FINANCIAL INFORMATION.................................................................................... 2 IV. OPERATING INFORMATION.................................................................................. 2 A. GENERAL FUND EXPENDITURES BY FUNCTION ............................................ 2 B. GENERAL FUND REVENUE BY SOURCE.......................................................... 3 C. PROPERTY TAX LEVIES AND COLLECTIONS .................................................. 3 D. SCHEDULE OF NET TAXABLE VALUE............................................................... 3 E. SCHEDULE OF DIRECT AND OVERLAPPING DEBT.........................................4 F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2012) ............................ 5 G. REVENUE BOND COVERAGE............................................................................5 H. DEMOGRAPHIC STATISTICS 2012.................................................................... 5 I. PRINCIPAL TAXPAYERS (JUNE 30, 2012)......................................................... 6 J. MAJOR EMPLOYERS (JUNE 30, 2012)............................................................... 6 K. SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2012).................................. 7 L. CASH AND INVESTMENTS (JUNE 30, 2012)...................................................... 8 V. OCCURRENCE OF LISTED EVENTS.................................................................... 9 City of La Quinta ».. 010 I" 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 that 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. 2011112 — 1996 Lease Rev City of La Quinta 1 ll. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of October 31, 2012 1996 Lease Revenue Bonds $3,425,000 B. FUND BALANCES Fund As of October 31, 2012 Reserve Fund n1 $689,350 (1) The Reserve Fund is funded by a Reserve Account Surety Bond Issued by National Public Finance Guarantee Corporation. Ill. FINANCIAL INFORMATION The audited financial statements for the City for the fiscal year ended June 30, 2012 and the Adopted Budget for fiscal year 2012/13 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 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 2012 4,669,060 19,619,113 3,765,860 2,566,654 1,207,755 2011112 — 1996 Lease Rev City of La Quinta '.0 012 B. GENERAL FUND REVENUE BY SOURCE Fiscal Year Licenses Ending and Inter- June 30 Taxes Permits Governmental Charges for Services Interest Miscellaneous Total 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 4,196,101 556,326tr1 35,882,103 2010 19,730,707 472,409 12,641,162 478,716 3,601,495 522,069t31 37,446,558 2011 20,321,573 547,071 13,034,944 494,611 2,998,856 490,15114) 37,887,206 2012 21,296,301 482,831 8,318.446 626,004 575,472 487,685ts1 31,786,739 (r) Includes Contribution from properly owners of $154,417 and Fines and forfeitures of $359,114. m Includes Fines and forfeitures of $434,635. r'I Includes Fines and forfeitures of $395,823. (4) Includes Fines and forfeitures of $327,751. (s) Includes Fines and forfeitures of $303,773. C. PROPERTY TAX LEVIES AND COLLECTIONS Fiscal Year Total Current Ending Tax Tax June 30 Levy Collection Percent of Levy Collected Collections in Subsequent Years Total Collections to Tax Levy 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% 2012 73,462,430 38,125,919 51.90% 0 51.90% 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. Effective February 1, 2012, AS 1X26 dissolved the Redevelopment Agencies throughout the State of California which resulted in the reduction of amounts collected during Fiscal Year 2011112. Source: County of Riverside Auditor Controller's Office. D. SCHEDULE OF NET TAXABLE VALUE Fiscal Year Assessed Net Ending Secured Unsecured Properly Less Taxable June 30 Property Property Value Exemptions Value 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 (161,265,140) 10,870,790,733 2012 10,400,897,792 107,421,771 10,508,319,563 (176,887,605) 10,331,431,958 Source: County of Riverside Auditor -Controller. 2011112 — 1996 Lease Rev City of La Quinta C�3 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) DSUSD Community Facilities District No.1 City of La Quints 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 ovedapping debt $ 3,969,069.991 6,362,361,967 $ 10,331,431,958 Estimated Share of Percentage Outstanding Overlapping Applicable' Debt6/30/11 Debt 7.94% 34.80% 7.57% 100.00% 100.D0% 86.25% 1.71% 1.71% 1.71% 34.80% 7.57% 11.52% 13.21 % $ 320,591,264 109,948,827 243,740,852 1,525,000 740,000 1,895,000 678,440,943 $ 655.042,180 357,540,000 5,055,000 48,850.000 57,905,0D0 1,410,000 2,280,000 Notes: c 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 dtys 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 bome by the residents and businesses of the City. This process reoognizes that when considering the Cilys 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 Le Quints - City Direct debt 2011112 — 1996 Lease of La Quints 1,128,082,180 1,806,523,123 $ 25,445,329 38,262.192 18,438,995 1,525,000 740,000 1,634,381 86,045,897 $ 11,227,423 6,128,236 86,643 16,999,800 4,380,513 162,460 301,120 39,286,195 125,332,092 249,165,516 $ 374,497,608 014 F. COMPUTATION OF LEGAL DEBT MARGIN (JUNE 30, 2012) Net Assessed Valuation $10,331,431,958 Debt Limit - 15 % of Assessed Valuation 1,549,714,794 Amount of Debt Applicable to Debt Limit 0 Legal Debt Margin $1,549,714,794 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 Quinta 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 Principal Interest Total Coverage 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 2012 673,521 445,000 228,521 673,521 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 2012 City Land (Sq. Miles) (3) 35.16 Population (1) 38,0751s1 Median Household Income (in dollars) (4) $104,045 Number of Dwelling Units (3) 23,528 Persons per Household (3) 2.555 Average Income per person per household (6) $40,722 Labor Force (2) 15,100 Employment (2) 14,100 Unemployment Rate (2) 6.62% Median Age (4) 42.8 I'I State of California Department of Finance - January 1 of each year. ter State of California Economic Development Department webs0e. I'I City of La Quints Building & Safety and Community Development Departments. t"/ Hdl-Coren & Cone Companies. '''The population number was updated based upon the 2010 United States Census. tul The information was not collected before 2006. 2011112 — 1996 Lease Rev City of La Quinfa 5 I. PRINCIPAL TAXPAYERS (JUNE 30, 2012) Percent of Total Taxable City Taxable Taxpayer Assessed Value Assessed Value KSL Desert Resort, Inc $ 140,972,125 1.36% TD Desert Development 97,885,896 0.95% MSR Resort Golf Course 55,063,175 0.53% East of Madison LLC 43,291,518 0.42% Inland American La Quints Pavilion 42,548.545 0.41 % Coral Option I LLC 42,113,733 0.41% WRM La Quinta 37,973,210 0.37% Griffin Ranch 35,404,218 0.34% Walmart Stores 29,352,870 0.28% TO Desert Development LP 25,918,559 0.25% Total $550,623,849 5.32% Note: The amounts shown above include assessed value data for both the City and Redevelopment Agency. Figures may not add due to rounding. J. MAJOR EMPLOYERS (JUNE 30, 2012) Employer Employees Activity La Quints Resort & Club 1,211 Hotel & Golf Resort Desert Sands Unified School District 968 Govemment Wal-Mart Super Center 367 Retailer Costco 234 Retailer Home Depot 165 Retailer Rancho La Quints 152 Golf Resort Lowe's Home Improvement 145 Retailer Hideaway 122 Golf Resort Tradition Golf Club 101 Grocery Store City of La Quints 89 Government Total Employment Listed 3,554 Total City Employment — July 1 13,300 — 1996 Lease Rev City of La Quints 6 K. SCHEDULE OF INSURANCE IN FORCE (JUNE 30, 2012) Company Policy Number Coverage Limits Tenn Premium Hartford 72BPEEW0254 Employee Dishonesty, $1,000.000 12/03/11-12/03/12 $3,224 Forgery, Computer Fraud Lexington 20412656 All Risk Property 64,497,900 7/01/12 — 7101/13 59,620 Insurance Including Auto Physical Damage, Terrorism, Boiler & Machinery (Excluding Earthquake) Lloyds 750020221-L-00 Earthquake/Flood, 20,000,000 2107112 — 2/07/13 122,811 Real& Personal Property Including Contingent Tax Interruption California WA Comprehensive $50 Million 7/01/12 — 7/01/13 279,613 Joint Powers General Liability Single Limit per Insurance Occurrence Authority California WA Worker's 10,000,000 7/01/12 — 7/01/13 108.547 Joint Powers Compensation Insurance Authority Alliant PECO011896301 Pollution Liability 10,000,000 7/01/11 — 7/01/14 26,227 2011112 — 1996 Lease Rev City of La Quinta 7 w C17 L. CASH AND INVESTMENTS (JUNE 30, 2012) Cash and investments as of June 30, 2012, are classified in the accompanying financial statements as follows: Statements of Net Assets: Cash and investments $108,200,219 Statements of Fiduciary Net Assets: Cash and investments 23.931.301 Cash with fiscal agent 57,077,193 Total cash and investments $189,208,713 Cash and investments as of June 30, 2012, consist of the following: Cash on hand Deposits with financial institutions Investments Total cash and investments 2011112 — 1996 Lease Rev City of La Quinta $1,905 453,410 188,753,398 $189,208,713 h. 018 V. OCCURRENCE OF LISTED EVENTS As amended, the Continuing Disclosure Covenants outline the Occurrence of Listed Events that must be reported in not more than ten (10) business days after the occurrence of the event, irrespective of any determination as to whether such event may or may not 6e 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, 2012. 1. Principal and interest payment delinquencies on the 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 Bonds. 6. Defeasances. 7. Tender offers. 8. Bankruptcy, insolvency, receivership or similar proceedings pertaining to the City. 9. Ratings changes. As amended, the Continuing Disclosure Covenants outline the Occurrence of Listed Events that must be reported in not more than ten (10) business days after the occurrence of the event, if 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, 2012. 10. Mergers, consolidations, acquisitions, the sale of all or substantially all of the assets of the City or the dissolution of the City. 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 Bonds. 2011112 — 1996 Lease Rev City of La Quinta 019 LA QUINTA FINANCING AUTHORITY $901000,000 LOCAL AGENCY REVENUE BONDS 2004 SERIES A Riverside County, California Dated: June 29, 2004 Base CUSIP": 50420A 2012 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT As of December 4, 2012 Also available at: SO DAN Wma�'llsee www.wllldan.com + Copyright, American Banker's Association. CUSIP data is provided by Standard and Poor's, 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 any way as a substitute for the CUSIP service. The issuer takes no responsibility for the accuracy of such number. -020 LIST OF PARTICIPANTS CITY OF LA QUINTA www.le-qulnta.org Robbeyn Bird Finance Director P.O. Box 1504 78-495 Calle Tampico La Quinta, California 92247 (760)777-7150 DISCLOSURE CONSULTANT & DISSEMINATION AGENT Willdan Financial Services Temecula, CA 92590 (951) 587-3500 Report available for viewing www.wilidan.com UNDERWRITER,.. Wedbush Morgan Securities BOND COUNSEL Rutan & Tucker LLP Costa Mesa, California FISCAL AGENT Brad Scarbrough U.S. Bank Trust, N.A. 633 West 51h 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. C 2 1 TABLE OF CONTENTS I. INTRODUCTION..........................................................................................................1 Il. BOND INFORMATION................................................................................................ 2 A. PRINCIPAL OUTSTANDING.........................................................................................2 B. FUND BALANCES...........................................................................................................2 Ill. FINANCIALINFORMATION.......................................................................................2 IV. OPERATING INFORMATION..................................................................................... 2 A. ASSESSED VALUATIONS............................................................................................. 2 B. HISTORICAL HOUSING SET -ASIDE REVENUE....................................................... 3 C. LAND USE......................................................................................................................... 4 D. TOP LOCAL SECURED TAXPAYERS......................................................................... 4 E. ANNUAL DEBT SERVICE.............................................................................................. 6 F. HISTORICAL DEBT SERVICE COVERAGE............................................................... 7 V. REDEVELOPMENT AGENCY DISSOLUTION 7 W. OCCURRENCE OF LISTED EVENTS....................................................................... 8 City o/ La Quinta 022 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 "2004 Bonds") to: (1) provide a loan to the La Quinta Redevelopment Agency (the "Agency"), (2) 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 (3) to advance refund the Agency's Redevelopment Project Areas No. 1 and No. 2, 1995 Housing Tax Allocation Bonds. The 2004 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 2004 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 2004 Bonds from Tax Revenues required to be deposited in the Project Area No. 1 Low and Moderate Income Housing Fund. The Authority also issued the Local Agency Subordinate Taxable Revenue Bonds, 2011 Series A (the "2011 Bonds") which are payable from Tax Revenues on a subordinate basis to the 1994 and 2004 Bonds. The 2004 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 2004 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 2004 Bonds and includes the information specified in a Continuing Disclosure Agreement. For further information and a more complete description of the Agency and the 2004 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 that 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. 2011/12, 2004 Revenue City of La Quinta 1 .1 it 023 Il. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of October 31, 2012 Local Agency Revenue Bonds, 2004 Series A $77.455,000 B. FUND BALANCES Fund As of October 31, 2012 Reserve Fund r'I $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 City for the fiscal year ended June 30, 2012 will be separately filed with the Electronic Municipal Market Access website ("EMMK) 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. Project Area No.1 Fiscal Secured Unsecured Utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base 11I Increment 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 2010/11 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 4,280,222,416 4,080,824,183 N/A 2012/13 4,220,927,365 33,872,601 0 4,254,799,966 4,055,401,733 N/A (1) For Fiscal Years 2008/09 through 2010/11, the Base Value for the Project Area No. 1 is $199,398,233. For Fiscal Years 2011/12 and 2012/13, the Base Value for the Project Area No. 1 is estimated at $199,398,233. Source: California Municipal Statistics, Inc. 2011112, 2004 Revenue City of La Quinta 2 024 PROJECT AREA Fiscal Secured Unsecured Utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base (1) Increment 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 2011112 2,360,463,457 57,899,939 0 2,418,363,396 2,323,180,641 N/A 2012/13 2,318,312,944 62,055,089 0 2,380,368,033 2.285,185,278 N/A (1) For Fiscal Years 2008/09 through 2010111, the Base Value for Project Area No. 2 is $95,182,755. For Fiscal Years 2011112 and 2012/13, the Base Value for Project Area No. 2 is estimated at $95,182,755. Source: Califomia Municipal Statistics, Inc. B. HISTORICAL HOUSING SET -ASIDE REVENUE The following table sets forth the Housing Set -Aside revenue for the Redevelopment Project Areas. ;1- 01!L*311M il =FJ:lox 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 2008109 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 La Quints Redevelopment Agency and the Statement of Indebtedness filed wiM the Riverside County Auditor -Controller's 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 Ouinta Redevelopment Agency and the Statement of Indebtedness filed with the Riverside County Auditor -Controllers Office. 2004 Revenue City of La Quints G25 C. LAND USE PROJECT AREA NO. 1 2012113 Total Percent Land Use Secured Value of Total Residential $3,632,888,043 86.07% Commercial 317,603,722 7.52% Vacant 229,164.328 5.43% Timeshare 39,737,704 0.94% Miscellaneous 1,533,568 0.04% Total Project Area No.1 $4,220,927,365 100.00% Note: Totals may not add due to rounding. Source: California Municipal Statistics, Inc. PROJECT AREA NO.2 2012/13 Total Percent Land Use Secured Value of Total Residential $1,718,037,095 74.11% Commercial 567,909,527 24.50% Vacant 30,354,691 1.31% Miscellaneous 2,011,631 0.09% Total Project Area No. 2 $2,318,312,944 100.00% Note: Totals may not add due to rounding. 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 2012/13 secured property tax roll. Property Owner Land Use 2012113 Assessed Valuation % of Total (') KSL Desert Resort Hotel $151,797,451 3.60% Sunrise Desert Partners Residential 70,490,223 1.67% MSR Resort Golf Course Country Club 49.009,939 1.16% Village Resort Hotel 24,486,681 0.58% Lands LP Apartments 20,553,610 0.49% NadadorLLC Timeshare Properties 18,584,114 0.44% CNL Desert Resort LP Hotel 18,234,484 0.43% Quarry at La Quinta Inc. Hotel 15,240,254 0.36% LQ Investments Commercial 13,776,608 0.33% Old Town La Quinta LLC Commercial 12,607,588 0.30% Total $394,780,952 9.35% (1) 2012/13 Local Secured Assessed Valuation: $4,220,927,365 Source: California Municipal Statistics, Inc. 2004 Revenue City of La Quints 026 The following table sets forth the largest secured taxpayers in Project Area No. 2 based on the 2012/13 secured property tax roll. Property Owner Land Use 2012113 Assessed - Valuation % of Total (1) Inland American La Quints Pavilion Commercial $43,399,514 1.87% Wal Mart Real Estate Business Trust Commercial 28,668,169 1.24% TD Desert Dev LP Commercial 25,120,550 1.08% Aventine Development Apartments 23,840,059 1.03% Washington 111 Ltd. Commercial 22,872,277 0.99% Costoo Wholesale Corp. Commercial 22,650,603 0.98% One Eleven La Quints Commercial 20,987,206 0.91% Komar Desert Properties Commercial 20,737,366 0.89% Target Corp. Commercial 16,555,317 0.71% Eagle Hardware & Garden Inc. Commercial 15,387,518 0 66°/ Total $240,218,679 10.36% (1) 2012113 Local Secured Assessed Valuation: $2,318,312,944 Source: California Municipal Statistics, Inc. 2011112, 2004 Revenue City of La Quints ..If C27 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. 1994 Bonds Maturity Date Debt 2004 Bonds 2011 Bonds Total September 1, Service I'1 Debt Service Debt Service Combined 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 2036 2,690,943 2,690 943 Total $490,307 $136,798,004 $66,777,682 $204,065,893 (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. 2011/12, 2004 Revenue City of La Quinta 6 028 F. HISTORICAL 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 (') Payment Set -Aside Set -Aside 1�) 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 15,825,773 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 1994 Bands 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. V. REDEVELOPMENT AGENCY DISSOLUTION On December 29, 2011, the California Supreme Court upheld ABx1 26 ("Redevelopment Dissolution Act"), which dissolves all redevelopment agencies ("RDA") in Califomia, effective February 1, 2012. Each successor agency is responsible for drafting a Recognized Obligation Payment Schedule ("ROPS") delineating the enforceable obligations of the former RDA payable through June 30, 2012 and their source of payment, and then additional ROPS every six months thereafter. ROPS are subject to the approval of the local oversight board. The former La Quinta Redevelopment Agency's schedule can be accessed by the link below. http://www.la-quinta.org/indox.aspx?page=661 2011/12, 2004 Revenue City of La Quinta m 029 VI. OCCURRENCE OF LISTED EVENTS As amended, the Continuing Disclosure Covenants outline the Occurrence of Listed Events that must be reported in not more than ten (10) business days after the occurrence of 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, 2012. 1. Principal and interest payment delinquencies on the 2004 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 2004 Bonds. 6. Defeasances. 7. Tender offers. 8. Bankruptcy, insolvency, receivership or similar proceedings pertaining to the Authority. 9. Ratings changes. As amended, the Continuing Disclosure Covenants outline the Occurrence of Listed Events that must be reported in not more than ten (10) business days after the occurrence of 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, 2012. 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 2004 Bonds. 2011/12, 2004 Revenue City of La Quinta n3© 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 2012 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT As of December 4, 2012 Also available at: WILLDAN Rne w smvl www.wilidan.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 not serve in any way as a substitute for the CUSIP service. The Issuer takes no responsibility for the accuracy of such number. I..h C°31 LIST OF PARTICIPANTS CITY OF LA QUINTA www.la-quinta.org Robbeyn Bird Finance Director P.O. Box 1504 78-495 Calle Tampico La Quinta, California 92247 (760)777-7150 DISCLOSURE CONSULTANT & DISSEMINATION AGENT Willdan Financial Services Temecula, CA 92590 (951) 587-3500 Report available for viewing @ www.wilidan.com UNDERWRITER Wedbush Morgan Securities Inc. Solana Beach, California BOND COUNSEL Rutan & Tucker LLP Costa Mesa, California FISCAL AGENT Brad Scarbrough U.S. Bank Trust, N.A. 833 West 5m Street, 241h 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 contalned herein. w 1`'32 TABLE OF CONTENTS 1. INTRODUCTION..........................................................................................................1 ILBOND INFORMATION................................................................................................ 2 A. PRINCIPAL OUTSTANDING..............................................................:..........................2 B. FUND BALANCES...........................................................................................................2 Ill. FINANCIAL INFORMATION....................................................................................... 2 IV. OPERATING INFORMATION..................................................................................... 2 A. ASSESSED VALUATIONS............................................................................................. 2 B. HISTORICAL HOUSING SET -ASIDE REVENUE....................................................... 3 C. LAND USE......................................................................................................................... 4 D. TOP LOCAL SECURED TAXPAYERS.........................................................................4 E. ANNUAL DEBT SERVICE.............................................................................................. 6 F. HISTORICAL DEBT SERVICE COVERAGE............................................................... 7 V. REDEVELOPMENT AGENCY DISSOLUTION.........................................................7 W. OCCURRENCE OF LISTED EVENTS....................................................................... 8 City of La Quinta C33 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 that 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. 2011112, 2011A Revenue City of La Quinta 1 ll. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bonds As of October 31, 2012 Taxable Revenue Bonds, 2011 Series A $28,850,000 B. FUND BALANCES Fund As of October 31, 2012 Reserve Fund $2,694,615 Reserve Requirement $2,694,381 /it. FINANCIAL INFORMATION The audited financial statements for the City for the fiscal year ended June 30, 2012 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 (f) Increment 2008/09 $5,245,952,426 $35,019,471 $0 $5,280,971,897 $5,081,573,664 $50,649,225 2009110 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 4,553,710,189 4,354,311,956 43,990,589 2011/12 4,248,567,040 31,655,376 0 4,280,222,416 4,080,824,183 N/A 2012113 4,220,927,365 33,872,601 0 4,254,799,966 4,055,401,733 N/A (1) For Fiscal Years 2008/09 through 2010/11, the Base Value for the Project Area No. 1 is $199,398,233. For Fiscal Years 2011/12 and 2012/13, the Base Value for the Project Area No. 1 is estimated at $199,398.233. Source: California Municipal Statistics, Inc. 2011/12, 2011A Revenue City of La Quinta 2 035 PROJECT AREA Fiscal Secured Unsecured Utility Total Taxable Taxable Value Gross Tax Year Value Value Value Value Above Base (1) Increment 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 2012/13 2,318,312,944 62,055,089 0 2,380,368,033 2,285,185,278 N/A (1) For Fiscal Years 2008/09 through 2010/11, the Base Value for Project Area No. 2 is $95,182,755. For Fiscal Years 2011/12 and 2012/13, the Base Value for Project Area No. 2 is estimated at $95,182,755. Source: California Municipal Statistics, Inc. B. HISTORICAL 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 2010/11 4,553,710,189 43,990,589 8,798,118 Source: Audited Financial Statements of the La Quints Redevelopment Agency and the Statement of Indebtedness filed with the Riverside County Auditor -Controller's Office. PROJECT AREA NO. 2 Total Taxable Gross Tax Housing Fiscal Year Value Increment Set Aside 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 -Controller's Office. 2011/12,2011A Revenue City of La Quinta C36 C. LAND USE PROJECT AREA NO. 2012113 Total Percent Land Use Secured Value of Total Residential $3,632,888,043 86.07% Commercial 317,603,722 7.52% Vacant 229,164,328 5.43% Timeshare 39.737,704 0.94% Miscellaneous 1,533,568 0.04% Total Project Area No.1 $4,220,927,365 100.00% Note: Totals may not add due to rounding. Source: California Municipal Statistics, Inc. PROJECT AREA NO.2 2012/13 Total Percent Land Use Secured Value of Total Residential $1,718,037,095 74.11% Commercial 567,909,527 24.50% Vacant 30,354,691 1.31 % Miscellaneous 2,011,631 0.09% Total Project Area No. 2 $2,318,312,944 100.00% Note: Totals may not add due to rounding. 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 2012/13 secured property tax roll. 2012/13 Assessed % of Property Owner Land Use Valuation Total (1) KSL Desert Resort Hotel $151,797,451 3.60% Sunrise Desert Partners Residential 70,490,223 1.67% MSR Resort Golf Course Country Club 49,009,939 1.16% Village Resort Hotel 24,486,681 0.58% Lands LP Apartments 20,553,610 0.49% Nadador LLC Timeshare Properties 18,584.114 0.44% CNL Desert Resort LP Hotel 18,234,484 0.43% Quarry at La Quints Inc. Hotel 15,240,254 0.36% LQ Investments Commercial 13,776,608 0.33% Old Town La Quinta LLC Commercial 12,607,588 0.30% Total $394,780,962 9.36% (1) 2012/13 Local Secured Assessed Valuation: $4,220,927,365. Source: California Municipal Statistics, Inc. 2011112, 2011A Revenue City of La Quints The following table sets forth the largest secured taxpayers in Project Area No. 2 based on the 2012/13 secured property tax roll. Property owner Land Use 2012/13 Assessed Valuation % of Total I11 Inland American La Quinta Pavilion Commercial $43,399,514 1.87% Wal Mart Real Estate Business Trust Commercial 28,668,169 1.24% TD Desert Dev LP Commercial 25,120,550 1.08% Aventine Development Apartments 23,840,059 1.03% Washington 111 Ltd. Commercial 22,872,277 0.99% Costoo Wholesale Corp. Commercial 22,650,603 0.98% One Eleven La Quints Commercial 20,987,206 0.91% Komar Desert Properties Commercial 20.737,366 0.89% Target Corp. Commercial 16,555,317 0.71% Eagle Hardware 8 Garden Inc. Commercial 15,387,518 0 66°/ Total $240,218,579 10.36% (1) 2012tl3 Local Secured Assessed Valuation: $2,318,312,944 Source: California Municipal Statistics, Inc. 2011112, 2011A Revenue City of La Quinta 5 C 3 8 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 Data September 1, 1994 Bonds Debt Service " 2004 Bonds Debt Service 2011 Bonds Debt Service Total Combined 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 2,693,461 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 2036 2,690,943 2,690 943 Total $490,307 $136,798,004 $66,777,682 $204,065,893 (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. 2011112, 2011A Revenue City of La Quints 6 r39 F. HISTORICAL 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 t'1 Payment Set -Aside Set -Aside 121 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 15,825,773 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 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. V. REDEVELOPMENT AGENCY DISSOLUTION On December 29, 2011, the California Supreme Court upheld ABx1 26 ("Redevelopment Dissolution Act"), which dissolves all redevelopment agencies ("RDA") in California, effective February 1, 2012. Each successor agency is responsible for drafting a Recognized Obligation Payment Schedule ("ROPS") delineating the enforceable obligations of the former RDA payable through June 30, 2012 and their source of payment, and then additional ROPS every six months thereafter. ROPS are subject to the approval of the local oversight board. The former La Quinta Redevelopment Agency's schedule can be accessed by the link below. hftp://Www.la-quinta.org/indox.aspx?page=661 2011/12, 2011A Revenue City of La Quinta 7 C 4.0 A OCCURRENCE OF LISTED EVENTS As amended, the Continuing Disclosure Covenants outline the Occurrence of Listed Events that must be reported in not more than ten (10) business days after the occurrence of 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, 2012. 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. As amended, the Continuing Disclosure Covenants outline the Occurrence of Listed Events that must be reported in not more than ten (10) business days after the occurrence of 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, 2012. 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. 2011/12, 2011A Revenue City of La Quinta :..;t C 41 04 V, Qum& F CITY/SA/HA/FM MEETING DATE: December 18, 2012 AGENDA CATEGORY: BUSINESS SESSION: ITEM TITLE: The La Quinta Financing Authority Financial Statements Contained within the CONSENT CALENDAR: Comprehensive Annual Financial Report for the Year STUDY SESSION: Ended June 30, 2012 PUBLIC HEARING: RECOMMENDED ACTION: Approve, receive and file the La Quinta Financing Authority Financial Statements contained within the Comprehensive Annual Financial Report (CAFR) for the Year Ended June 30, 2012. EXECUTIVE SUMMARY: The financial activities of the La Quinta Financing Authority are contained in the CAFR, which was presented at the December 4, 2012 City Council meeting and are reported as Debt Service and Capital Project Fund types. FISCAL IMPACT: None. BACKGROUND/ANALYSIS: The 1996 Civic Center refunding bond issue and the 2004 and 2011 Financing Authority Bond issue principal and interest bond payments are accounted for in the CAFR Debt Service Funds. The 2004 and 2011 Financing Authority bond issues also have available bond proceeds which are accounted for as a Capital Project Fund in the CAFR. �42 ALTERNATIVES: No recommended alternatives at this time. Respectfully submitted, ICM.1 L;t, AMd. Robbeyn Bi d, Finance Director r43 'b OF'MQ' AGENDA CATEGORY: CITY/SA/HA FN MEETING DATE: December 18, 2012 BUSINESS SESSION: 11 ITEM TITLE: Receive and File Transmittal of CONSENT CALENDAR: 4 Treasurer's Reports as of October 31, 2012 STUDY SESSION: PUBLIC HEARING: RECOMMENDED ACTION: It is recommended the La Quinta Financing Authority: Receive and file. PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA 11 P44