2017-2018 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)FISCAL YEAR ENDED JUNE 30, 2018
City of La Quinta La Quinta, California
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2018
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2018
Prepared by the Finance Department
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................. i
List of Principal Officials .......................................................................................................................... v
Organizational Chart................................................................................................................................. vi
Certificate of Achievement for Excellence in Financial Reporting (GFOA) ......................................... vii
FINANCIAL SECTION
Independent Auditors' Report .................................................................................................................... 1
Management's Discussion and Analysis .................................................................................................... 4
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position .................................................................................................................... 17
Statement of Activities ........................................................................................................................ 18
Fund Financial Statements
Balance Sheet – Governmental Funds ................................................................................................. 20
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position ...................................................................... 22
Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds .......................................................................................................................... 23
Reconciliation of Statement of Revenues, Expenditures and Changes
In Fund Balances of Governmental Funds to the Statement of Activities ......................................... 25
Statement of Net Position – Proprietary Funds ................................................................................... 26
Statement of Revenues, Expenses and Changes in
Fund Net Position – Proprietary Funds ............................................................................................. 27
Statement of Cash Flows – Proprietary Funds..................................................................................... 28
Statement of Net Position – Fiduciary Funds ...................................................................................... 30
Statement of Changes in Net Position – Fiduciary Funds ................................................................... 31
Notes to the Basic Financial Statements .................................................................................................. 32
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
(Continued)
Page
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedules:
General Fund .................................................................................................................................. 75
Housing Authority Special Revenue Fund ..................................................................................... 76
Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan ......................... 77
Schedule of Plan Contributions – Miscellaneous Plan ........................................................................ 78
Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................. 79
Notes to Required Supplementary Information ................................................................................... 80
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ............................................................ 83
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds ........................................................ 90
Budgetary Comparison Schedules – Special Revenue Funds
State Gas Tax ................................................................................................................................... 97
Library and Museum ........................................................................................................................ 98
Federal Assistance ............................................................................................................................ 99
SLESA ........................................................................................................................................... 100
Lighting and Landscaping .............................................................................................................. 101
Quimby .......................................................................................................................................... 102
Public Safety .................................................................................................................................. 103
Art in Public Places ........................................................................................................................ 104
South Coast Air Quality ................................................................................................................. 105
AB 939 ........................................................................................................................................... 106
Law Enforcement ........................................................................................................................... 107
Justice Assistance Grant ................................................................................................................. 108
Measure A ...................................................................................................................................... 109
Budgetary Comparison Schedules – Capital Projects Funds
Capital Improvement ...................................................................................................................... 110
Civic Center ................................................................................................................................... 111
Transportation ................................................................................................................................ 112
Parks and Recreation ...................................................................................................................... 113
Library Development ..................................................................................................................... 114
Community Center ......................................................................................................................... 115
Street Facility ................................................................................................................................. 116
Park Facility ................................................................................................................................... 117
Fire Facility .................................................................................................................................... 118
CITY OF LA QUINTA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
(Continued)
Page
Budgetary Comparison Schedules – Debt Service Funds
Financing Authority ....................................................................................................................... 119
Combining Statement of Net Position – Internal Service Funds ................................................... 121
Combining Statement of Revenues, Expenses and Changes
in Fund Net Position – Internal Service Funds ............................................................................ 122
Combining Statement of Cash Flows – Internal Service Funds ..................................................... 123
Combining Statement of Net Position – All Agency Funds .......................................................... 125
Combining Statement of Changes in Assets and Liabilities – All Agency Funds ......................... 126
STATISTICAL SECTION
Net Position by Component (Table 1) .................................................................................................. 128
Changes in Net Position (Table 2) ........................................................................................................ 130
Changes in Net Position – Governmental Activities (Table 3) ............................................................ 132
Changes in Net Position – Business-type Activities (Table 4) ............................................................. 134
Fund Balances of Governmental Funds (Table 5) ................................................................................ 136
Changes in Fund Balances of Governmental Funds (Table 6) ............................................................. 138
Tax Revenue by Source (Table 7) ........................................................................................................ 140
Top 25 Sales Tax Producers (Table 8) ................................................................................................. 142
Taxable Sales by Category (Table 9) ................................................................................................... 143
Assessed Value and Estimated Actual Value of Taxable Property (Table 10) .................................... 145
Direct and Overlapping Property Tax Rates (Table 11) ....................................................................... 146
Principal Property Taxpayers (Table 12) .............................................................................................. 148
Property Tax Levies and Collections (Table 13) .................................................................................. 149
Ratios of Outstanding Debt by Type (Table 14) .................................................................................. 150
Ratio of General Bonded Debt Outstanding (Table 15) ....................................................................... 152
Direct and Overlapping Debt (Table 16) .............................................................................................. 153
Legal Debt Margin Information (Table 17) .......................................................................................... 154
Pledged-Revenue Coverage (Table 18) ................................................................................................ 156
Demographic and Economic Statistics (Table 19) ............................................................................... 157
Principal Employers (Table 20) ............................................................................................................ 158
Full-time City Employees (Table 21) ................................................................................................... 159
Operating Indicators (Table 22) ........................................................................................................... 160
Capital Asset Statistics (Table 23) ........................................................................................................ 161
Schedule of Insurance in Force (Table 24) ........................................................................................... 162
This page left blank intentionally.
i
December 27, 2018
To the Citizens of La Quinta, the Honorable Mayor and Members of the City Council:
Submitted herein is the City of La Quinta Comprehensive Annual Financial Report (CAFR)
for the fiscal year ending June 30, 2018. The CAFR presents information regarding the
City’s financial activities. This transmittal letter provides a non-technical summary of the
City’s finances, services, achievements, and economic outlook. A more detailed analytical
analysis is presented in the Management’s Discussion and Analysis section (MD&A) that
immediately follows the independent auditors’ report. The MD&A provides an overview and
analysis of the basic financial statements and complements this transmittal.
Responsibility for the accuracy and the completeness of all disclosures rests with
management. To the best of our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designed to fairly present the financial
position and results of City operations. Supplementary disclosures are included to
summarize the City’s financial activities.
This CAFR was prepared in conformance with Generally Accepted Accounting Principles
(GAAP). The City’s financial reporting is based upon all Governmental Accounting Standards
Board (GASB) pronouncements.
Government Code Section 26909 (a) requires the City to contract with a certified public
accountant to perform an annual audit of the City’s accounts and records, and the audit
must conform to generally accepted auditing standards. Further, Government Code Section
26909 (b) states that an audit report shall be filed with the State Controller and with the
County Auditor within 12 months of the end of the fiscal year. In addition, City Ordinance
2.12.040 requires an annual audit be performed by a certified public accountant. This CAFR
fulfills these requirements.
Management assumes full responsibility for the completeness and reliability of the
information contained in this CAFR, based upon a comprehensive framework of internal
controls that has been established for this purpose. Because the cost of internal control
should not exceed anticipated benefits, the objective is to provide reasonable rather than
absolute assurance that the financial statements are free of any material misstatements.
ii
The independent auditors’ report is located at the front of the financial section. Vavrinek,
Trine, Day & Co., LLP Certified Public Accountants have issued an unmodified (“clean”)
opinion on the City’s financial statements for the year ended June 30, 2018. This is the
most favorable conclusion. The independent audit involved examining evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles
used and estimates made by management, and evaluating the overall financial statement
presentation and conformity with GAAP.
Government Profile
The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of
Riverside County known as the Coachella Valley. The City was incorporated in 1982 as a
general law City and became a charter city in November 1996. It is governed by a five-
member City Council under the Council/Manager form of government. The Mayor is directly
elected and serves a two-year term; the four Council Members serve four-year terms, with
two Council Members elected every two years. The Mayor and Council Members are elected
at large.
The Council appoints the City Manager, who in turn appoints the Directors of the various
departments. The City provides a range of services, which include street and infrastructure
construction and maintenance; community development and planning; construction and
code compliance; recreational and cultural activities; and operations management.
The City contracts with other government agencies and private entities for specific services,
including police and fire protection, library and museum services, water and sewer service,
electricity service, public transit, refuse collection, and street sweeping.
The City is also financially accountable for legally separate public entities – the Successor
Agency for the former Redevelopment Agency, the Financing Authority, and the Housing
Authority. Additional information on these entities can be found in the notes to the financial
statements.
Pursuant to City Ordinance 2.08.060 and 2.12.030, the City Manager and Finance Director
are responsible for annual budget, which the City Council reviews and approves prior to the
start of each fiscal year. The annual budget is the foundation for the City’s financial planning
and control.
iii
The budget is prepared by fund, function, department, and line item. Department Directors
may transfer line item resources within a division with the approval of the City Manager.
The City Manager may authorize transfers between divisions and departments.
Local Economy
The City of La Quinta comprises an area of approximately 36 square miles and, as of January
2018 has a full-time population of 41,204 according to California Department of Finance
records. Nearly 18,000 seasonal residents also call La Quinta home from October through
May each year.
According to the State of California Employment Development Department, as of October
2018, the seasonally unadjusted unemployment rate for La Quinta was 5%, which was
higher than Riverside County’s at 4.4% and the statewide average of 4%. The City’s
dominant industries are recreation, tourism and retailers with the following major
employers: La Quinta Resort and Club, Desert Sands Unified School District, Wal-Mart Super
Center, Costco, Home Depot, Imperial Irrigation District, Lowe’s Home Improvement,
Target, and Traditions Golf Club.
Long-term Financial Planning
Sound financial governance continues to be management’s focus. The City has a long
history of providing superior service, life enrichment opportunities, and a quality
environment to its residents, businesses, and visitors. In June 2018 the City Council adopted
a conservative budget for fiscal year 2018/19 based on current economic conditions. The
adopted budget had operating revenues exceeding expenses by $65,751.
Included in the 2018/19 budget $12.3 million of capital improvements with 49% of these
funds coming from the General Fund. Improvements include parkway landscape turf
conversion north of Highway 111, drainage improvements, and road and sidewalk
improvements to decrease vehicle congestion and improve walkability.
La Quinta has cultivated a sound foundation of General Fund revenues including sales tax,
transient occupancy (hotel) tax, and property tax. The City was incorporated in 1982 after
Proposition 13 was approved (the landmark property tax reform initiative enacted in 1978);
as such, the City receives a smaller share of property tax revenue and must rely heavily on
sales tax and transient occupancy (hotel) tax revenue for General Fund income.
iv
The Future
The luxury Montage and lifestyle Pendry hotels are scheduled to break ground in early 2019.
The development is adjacent to the SilverRock Golf Resort and includes a spa, conference
center, lifestyle branded residential, resort and mixed-use villages, and a golf clubhouse. In
2019, the City will construct a 14-acre passive community park adjacent to this
development. The park will feature rolling hills, water features, meandering walkways, and
breathtaking views of the Santa Rosa Mountains.
The Highway 111 business corridor accounts for nearly 70% of the City’s annual sales tax
revenue. A visionary assessment of the corridor was completed in the spring of 2018 and
identified design and aesthetic opportunities to promote business visibility and access,
impacts of emerging technology, evaluated mixed use development, and future land-use
and development strategies. In 2019, the City will craft a corridor area plan to guide future
improvements and developments.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its
CAFR for the fiscal year ended June 30, 2017. This was the twenty-first consecutive year
that the City has received this prestigious award. To be awarded a Certificate of
Achievement, the City had to publish an easily readable and efficiently organized CAFR.
A Certificate of Achievement is valid for one year. We believe that our current CAFR
continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
We extend our deepest gratitude to all Finance Department staff for their skill, effort, and
dedication in completing the CAFR. Credit is also due to the Mayor and City Council for their
support in maintaining high standards when managing the City’s finances.
v
City of La Quinta
List of Principal Officers
June 30, 2018
CITY COUNCIL
Linda Evans, Mayor
Kathleen Fitzpatrick, Mayor Pro Tem
John Peña, Council Member
Robert Radi, Council Member
Steve Sanchez, Council Member
ADMINISTRATION
Frank J. Spevacek, City Manager
Karla Campos, Finance Director/ City Treasurer
Christopher Escobedo, Community Resources Director
Steve Howlett, Facilities Director
Danny Castro, Design and Development Director/ City Engineer
Monika Radeva, City Clerk
William H. Ihrke, City Attorney
vi
vii
This page left blank intentionally.
19340 Jesse Ln., Suite 260, Riverside, CA 92508 P 951.367.3000 F 951.367.3010 W vtdcpa.com
1
INDEPENDENT AUDITORS’ REPORT
The Honorable Mayor and Members of City Council
City of La Quinta, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities,
each major fund, and the aggregate remaining fund information of the City of La Quinta, California, (City), as of
and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, business-type activities, each major fund, and the aggregate
remaining fund information of the City, as of June 30, 2018, and the respective changes in financial position, and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter
As described in Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board
(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions, effective July 1, 2017. This resulted in a restatement of beginning net position as disclosed in note 18 to
the financial statements. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 4 through 16, schedule of the City’s proportionate share of the net pension
liability on page 77, schedule of plan contributions on page 78, schedule of changes in the total OPEB liability
and related ratios on page 79, budgetary comparison schedules for the General Fund on page 75 and Housing
Authority special revenue fund on page 76 and the related notes on page 80, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
statements and schedules, and statistical section are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
The combining and individual fund statements and schedules are the responsibility of management and were
derived from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and individual fund
statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2018, on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Riverside, California
December 27, 2018
This page left blank intentionally.
4
Management's Discussion and Analysis
This narrative provides an overview and analysis of the City of La Quinta’s (City)
financial activities for the fiscal year ending June 30, 2018. The City Executive Team
encourages readers to consider this information in conjunction with the data provided
in our transmittal letter, which is in an earlier section of this report. All amounts,
unless otherwise indicated, are rounded to the nearest thousands of dollars and dates
are represented by fiscal year.
Highlights
At the close of 2017/18 (June 30, 2018):
•Primary government assets exceeded its liabilities by $719,452,000 (net
position). Of this amount, $125,747,000 (unrestricted net position) may be used
to meet ongoing obligations and approximately $554,499,000 or 77% was
invested in capital assets and is not available to meet ongoing obligations.
•Governmental activities total net position increased by $7,400,000 and the
Business-Type total net position decreased by $313,000 which is attributable to
the SilverRock Golf Course.
•Governmental funds (General Fund, Housing Authority, Capital Improvement
Fund, Civic Center Fund, nineteen (19) Special Revenue Funds, and the Finance
Authority Fund) had a combined ending fund balance of $149,681,000, an
increase of $14,807,000. The primary reasons for this increase are an
extraordinary gain of $3,624,000 derived from the Redevelopment loan
repayment; $3,707,000 increase in assigned sales tax derived from Measure G;
and a $2,250,000 increase in the unassigned fund balance due to expenditure
savings and overall revenues (inclusive of the extraordinary gain) were 13%
higher than budgeted.
•The unassigned General Fund balance comprised $19,200,000, or 16%, of the
total $121,824,000 balance and represented 34% of total final General Fund
budgeted expenditures including transfers.
•Total governmental activities debt decreased by $3,518,000 from $6,784,000 to
$3,266,000. This was primarily due to a second loan installment payment
($1,125,000) for the Eisenhower Drive retention basin land purchased for
drainage improvements and the transfer of the Housing Authority Provident and
United States Department of Agriculture loans to Coachella Valley Housing
Coalition ($1,909,000). (Note 5)
Overview
This discussion and analysis introduces the City’s basic financial statements, which
are comprised of three components: 1) government-wide financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial
statements.
5
Government-wide financial statements
The government-wide financial statements provide a broad overview of the City’s
finances. There are two statements – statement of net position and statement of
activities, as described below.
The statement of net position presents information on all City assets and deferred
outflows of resources as well as liabilities, and deferred inflows of resources, with the
difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the City’s
financial position is improving or deteriorating.
The statement of activities presents information showing how the government's
net position changed during the most recent fiscal year. All changes in net
position are reported as soon as the underlying event occurs giving rise to the
change, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods, for example, earned but unused vacation
leave.
Both of these government-wide financial statements distinguish City functions,
which are principally supported by taxes, fees, and intergovernmental revenues
(governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user charges (business-type
activities). Governmental activities include general government, public safety,
community services, community development and public works; business-type
activities include the SilverRock Golf course operations.
The government-wide financial statements include not only the City of La Quinta
(known as the primary government), but also the La Quinta Financing Authority
and the La Quinta Housing Authority. Although legally separate entities, they
function for all practical purposes as City departments.
The government-wide financial statements are listed in the table of contents
under the Financial Section of this report.
Fund financial statements
A fund is a grouping of related accounts and is used to maintain control over
resources that have been segregated for specific activities or objectives. The
City, like other state and local governments, uses fund accounting to ensure
compliance with finance-related legal requirements. All of the City’s funds are
aggregated into three categories: governmental funds, proprietary funds, and
fiduciary funds.
6
Governmental funds
Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financing requirements.
Because the focus is narrower than the government-wide financial statements,
it is useful to compare this information with similar information presented for
governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's
near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains twenty-three (23) individual governmental funds, which are
distinguished between major and non-major funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances. There are
four (4) major governmental funds: the General Fund, two (2) capital project
funds, and one special revenue fund. Data from the other nineteen (19)
governmental funds are combined into a single, aggregate presentation.
Individual fund data for each of these non-major governmental funds is provided
in the form of combining statements under Other Governmental Funds.
The City adopts an annual budget for its General Fund. A budgetary comparison
schedule has been provided to demonstrate compliance with the adopted budget.
The basic governmental fund financial statements can be found in the table of
contents under the heading Basic Financial Statements.
Proprietary funds
Proprietary funds are broken down into enterprise and internal service funds.
Enterprise funds are used to report the same functions presented as business-
type activities in the government-wide financial statements. The City maintains
one (1) enterprise fund to account for the SilverRock Golf Course operations,
which is considered to be a major fund.
Internal service funds are used to allocate costs among the City’s various
functions. The City has four (4) internal service funds: equipment replacement,
information technology systems, park equipment and facilities, and insurance.
Because these four (4) services predominantly benefit governmental rather than
business-type functions, they have been included within governmental activities
in the government-wide financial statements. The internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial
7
statements. Individual fund data for the internal service funds is provided in the
form of combining statements on the Combining and Individual Fund Statements.
The basic proprietary fund financial statements are listed in the table of contents
under Proprietary Funds: Statement of Net Position, Statement of Revenues,
Expenses and Changes in Fund Net Position, and Statement of Cash Flows.
Fiduciary funds
Fiduciary funds, also called agency funds, are used to account for resources held for
the benefit of parties outside the government. Fiduciary funds are not reflected in
the government-wide financial statements because the resources of those funds are
not available to support the City’s own programs. The accounting used for fiduciary
funds is much like that used for proprietary funds.
The City reports on two fiduciary funds: 1) Successor Agency Trust which provides
for activities associated with the dissolution of the former Redevelopment Agency,
and 2) Defined Contribution Pension Trust established to provide retirement benefits.
The basic fiduciary fund financial statements are listed in the table of contents under
Fiduciary Funds: Statement of Net Position – Fiduciary Funds and Changes in Net
Position – Fiduciary Funds.
Notes to the financial statements
The notes to the financial statements provide information that is essential to obtain
a full understanding of the data provided in the government-wide and fund financial
statements. These notes are listed in the table of contents under Notes to Basic
Financial Statements.
Other information
In addition to the basic financial statements and accompanying notes, this report also
presents the combining statements referred to earlier in connection with non-major
governmental funds, internal service funds, and agency funds. The non-major
governmental funds’ combining statements are presented immediately following the
Required Supplementary Information while the combined statements for the internal
service funds and agency funds are presented following the budgetary comparison
schedules for the debt service funds.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. In the case of the City, assets exceeded liabilities by
$719,452,000 at the close of the 2017/18, which is $6,766,000 more than the
previous year. This increase is primarily attributed to an increase of unrestricted net
position for governmental activities.
8
The largest portion of the City’s Net Position ($554,499,000 or 77% for 2017/18 and
$560,876,000 or 79% for 2016/17) reflects investment in capital assets (e.g., land,
buildings; machinery, and equipment), net of related debt. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available
for future spending. However, it should be noted that the resources needed to repay
the related debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate debt.
City of La Quinta Net Position
Current and other assets 182,401,166 197,620,032 0.083 (4,794,773) (4,845,320) 0.011 177,606,393 192,774,712 0.085
Capital assets 521,084,650 510,913,594 (0.020) 43,836,868 43,585,880 (0.006) 564,921,518 554,499,474 (0.018)
Total Assets 703,485,816 708,533,626 0.007 39,042,095 38,740,560 (0.008) 742,527,911 747,274,186 0.006
Deferred outflows of resources 3,023,443 5,190,412 0.717 - - - 3,023,443 5,190,412 0.717
- - -
Current liabilities 13,610,469 14,789,716 0.087 346,193 357,892 0.034 13,956,662 15,147,608 0.085
Non-current liabilities 18,534,952 17,259,349 (0.069) - - - 18,534,952 17,259,349 (0.069)
Total Liabilities 32,145,421 32,049,065 (0.003) 346,193 357,892 0.034 32,491,614 32,406,957 (0.003)
Deferred inflows of resources 374,366 605,946 0.619 - - - 374,366 605,946 0.619
Net Position:
Net investment in capital
assets 517,039,487 510,913,594 (0.012) 43,836,868 43,585,880 (0.006) 560,876,355 554,499,474 (0.011)
Restricted 38,824,860 39,263,604 0.011 - - - 38,824,860 39,263,604 0.011
Unrestricted 118,125,125 130,891,829 0.108 (5,140,966) (5,203,212) 0.012 112,984,159 125,688,617 0.112
Total Net Position 673,989,472 681,069,027 0.011 38,695,902 38,382,668 (0.008) 712,685,374 719,451,695 0.009
Total by Fiscal Year %
Change20172018
Governmental Activities Business-Type Activities%
Change
%
Change2017201820172018
An additional portion of the City's net position ($39,264,000 or 5% in 2018 and
$38,825,000 or 5% in 2017) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted Net
Position $125,689,000 (17%) may be used to meet the government's ongoing
obligations to citizens and creditors.
At the end of 2017/18, the City has positive balances in all three categories of Net
Position, both for the government as a whole, as well as for its separate governmental
activities; however, the business type Unrestricted Net Position had a deficit in its
net position of $5,203,000, which is approximately $62,000 more than 2016/17.
SilverRock’s negative unrestricted net position reflects the outstanding $5.4 million
advance from the General Fund which is decreased by cash, deposits and receivables
on hand to meet current obligations.
Governmental activities
Governmental activities Net Position increased by $7,400,000 accounting for a
1% percent change in the Net Position from the previous year. Key elements of these
changes are as follows:
9
City of La Quinta Changes in Net Position
•Revenues overall increased by $11,736,000 with the largest increase
($10,490,000) being Other Taxes which includes Measure G transaction and use
sales tax. Additional increases include property taxes - $366,000, investment
income - $361,000, miscellaneous revenue - $189,000, and motor vehicle in lieu
revenue - $128,000. These increases were offset by decreases totaling
$1,928,000 for operating grants. Grant revenues will be recognized in 2018/19 as
projects are completed.
•Expenses for Governmental Activities increased by $12,363,000
(a 25% increase when compared to 2016/17). Increases were realized in each
expense category with the exception of public safety. As noted earlier
Governmental Activities include 23 individual governmental funds and include
capital asset activity allocated on a percentage basis by department. Additional
information on capital asset activity distribution can be found on Note 4.
PROGRAM REVENUES:
Charges for Services 2,604,623$ 3,473,058$ 868,435$ 3,446,340$ 3,567,718$ 121,378$ 6,050,963$ 7,040,776$ 989,813$
Operating Grants and
Contributions 6,187,803 4,259,916 (1,927,887) - - - 6,187,803 4,259,916 (1,927,887)
Capital Gains and
Contributions 3,316,153 4,455,060 1,138,907 - - - 3,316,153 4,455,060 1,138,907
-
GENERAL REVENUES &
TRANSFERS -
Property Taxes 15,521,335 15,887,015 365,680 - - - 15,521,335 15,887,015 365,680
Other Taxes 22,260,550 32,750,611 10,490,061 - - - 22,260,550 32,750,611 10,490,061
Investment Income 442,710 803,654 360,944 2,028 3,511 1,483 444,738 807,165 362,427
Motor Vehicle In Lieu 3,813,213 3,941,348 128,135 - - - 3,813,213 3,941,348 128,135
Miscellaneous 460,614 649,566 188,952 - - - 460,614 649,566 188,952
TOTAL REVENUES 54,607,001 66,220,228 11,613,227 3,448,368 3,571,229 122,861 58,055,369 69,791,457 11,736,088
EXPENSES:
General Government 5,565,727 8,869,174 3,303,447 - - - 5,565,727 8,869,174 3,303,447
Public Safety 23,378,824 22,508,088 (870,736) - - - 23,378,824 22,508,088 (870,736)
Planning & Development 2,882,321 4,352,134 1,469,813 - - - 2,882,321 4,352,134 1,469,813
Community Services 6,584,268 9,231,268 2,647,000 - - - 6,584,268 9,231,268 2,647,000
Public Works 10,927,160 15,580,975 4,653,815 - - - 10,927,160 15,580,975 4,653,815
Interest on Long-Term Debt 309,463 1,468,971 1,159,508 - - - 309,463 1,468,971 1,159,508
Golf Course - - - 3,965,644 4,318,463 352,819 3,965,644 4,318,463 352,819
TOTAL EXPENSES 49,647,763 62,010,610 12,362,847 3,965,644 4,318,463 352,819 53,613,407 66,329,073 12,715,666
TRANSFERS &
EXTRAORDINARY ITEMS:
Extraordinary Gain on
Dissolution of RDA 7,344,050 3,624,121 (3,719,929) - - - 7,344,050 3,624,121 (3,719,929)
T ransfers (401,300) (434,000) (32,700) 401,300 434,000 32,700 - - -
Increase in Net Position 11,901,988 7,399,739 (4,502,249) (115,976) (313,234) (197,258) 11,786,012 7,086,505 (4,699,507)
Net Position - Beginning 662,087,484 673,669,288 11,581,804 38,811,878 38,695,902 (115,976) 700,899,362 712,365,190 11,465,828
NET POSITION - ENDING 673,989,472$ 681,069,027$ 7,079,555$ 38,695,902$ 38,382,668$ (313,234)$ 712,685,374$ 719,451,695$ 6,766,321$
2017 2018ChangeChange Change
Total by Fiscal YearBusiness-Type ActivitiesGovernmental Activities
2017 2018 2017 2018
10
•Of this increase, one-time expenses included: establishing the Other Post-
Employment Benefit Trust account ($1,523,000) and a $10,202,000 fixed asset
disposal expense related to the transfer of ownership for Washington Street
Apartments.
•The General Fund contributed $434,000 to the business-type activities of the golf
course. Funds were utilized to support operations per the adopted budget.
Business-type activities
This was the thirteenth full year of operations for the SilverRock Golf fund since
the golf course opened in 2005.
Charges for services primarily consisted of green fees which totaled $3,568,000,
$121,000 greater than the previous year, with golf course expenses of
$4,318,000, which were $353,000 or 9% more than the previous year. After
transfers in, the net position decreased by $313,000.
Expenditure increases included a $126,000 increase in management services, an
increase of $77,651 in rental payments, and increased expenses related to the
purchase of merchandise for sale.
In 2017/18, the General Fund transferred $434,000 to the SilverRock Golf fund to
support operations.
The total outstanding advance due to the General Fund from the inception of the Golf
Course opening to June 30, 2018 is $5,469,000.
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds - The focus of the City’s governmental funds is to provide
information on near-term inflows, outflows, and balances. Such information is
useful in assessing the City's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of 2017/18, the City's governmental funds reported combined ending
fund balances of $149,681,000 as follows:
11
City of La Quinta Governmental Fund Balances
Category General Fund Percent All Other Funds Percent Total Funds Percent
Nonspendable 52,976,449$ 44%-$ 0% 52,976,449$ 36%
Restricted - 0% 39,263,604 141% 39,263,604 26%
Committed 29,726,500 24%- 0% 29,726,500 20%
Assigned 19,921,112 16%- 0% 19,921,112 13%
Unassigned 19,199,506 16% (11,405,877) -41% 7,793,629 5%
TOTAL 121,823,567$ 100% 27,857,727$ 100% 149,681,294$ 100%
Governmental fund balances ended the year totaling $149,681,000, an increase of
$14,806,000 in comparison with the prior years’ ending balance of $134,875,000.
These collective fund balances include the General Fund, Housing Authority,
Financing Authority, Capital Improvement Fund, Civic Center Fund, and various
Special Revenue funds.
Nonspendable
Nonspendable reserves are $52,976,000 or 36%; these reserves are not available to
fund operating expenditures because they are in the form of land and receivables.
Restricted
$39,264,000 (26%) are restricted fund balances, which are the result of external
limitations on spending. The Restricted funds such as Measure A, which can only be
used for transportation; Gas Tax Fund, restricted for street related purposes; or
Housing Funds, restricted for housing activities to preserve and produce affordable
housing.
Committed
$29,727,000 (20%) are committed fund balances which are the result of self-imposed
limitations established by the City Council. The City adopted a new Reserve Policy in
May 2018 which established three additional General Fund committed reserve
categories including: Economic Disaster Reserve, Capital Replacement Reserve, and
a Pension Trust Reserve. The Post-Retirement Health Benefits Trust was established
in 2017/18 with $1,523,000, which removed this 2016/17 committed reserve
category.
Assigned
Assigned funds are constrained by the City’s intent to use them for specific purposes
and represent a total of $19,921,000 (13%) of the total fund balance. $4,997,000
represents funds for approved Capital Projects carryovers for multi-year projects.
Available Measure G sales tax revenue ended the year at $5,170,000. $9,754,000
represents funds held in trust with the County of Riverside for fire services.
Unassigned
The remaining fund balance or $7,794,000 represents unassigned fund balances or
the residual net resources after taking into consideration the other classifications.
The Civic Center fund accounted for $7.1 million of the $11.3 million negative
12
unassigned balance in all other funds. This amount represents an advance due to the
General Fund and is included in the General Fund nonspendable fund balance.
General Fund
The General Fund is the City’s chief operating fund. At the end of the 2017/18, the
unassigned fund balance was $19,200,000 while total fund balance was $121,824,000.
The General Fund balance increased by $14,361,000 in 2017/18. Key factors were:
•The change in non-spendable reserves was primarily due to the Last and Final
Recognized Obligation Payment Schedule (ROPS) approved by the Department of
Finance in November 2017, which resulted in an interest rate increase from 3%
to 4% since the inception of the Redevelopment Agency loan. The due from other
governments ($29,612,000) represents the principal ($20,693,000) and interest
($8,919,000) owed to the General Fund (80% of loan repayments).
•Committed reserves increased by $7.4 million due to: a.) an increase in cash flow
reserve of $866,000 (previously working capital reserve), b.) the establishment
of a new capital replacement reserve with initial funding of $5 million ($1 million
from former Emergency Reserves), and c.) an increase in carryovers of $2 million.
In addition, a Post-Retirement Health Benefit Trust was established and funded
with $1,523,000 and a new commitment of $2 million was made to establish a
Pension Trust during 2018/19. New commitments were funded with unassigned
reserves.
•An increase of $4.2 million in assigned reserves was primarily due to Measure G
sales tax revenue ($3,707,000) and fire services trust ($383,000).
•Assigned to public safety represents property tax accumulated and held in trust
by the County of Riverside for fire protection, disaster preparedness and response,
fire prevention, rescue, hazardous materials mitigation, technical rescue
response, medical emergency services, and public service assists (the County and
City negotiated an agreement wherein the County fire service property tax
revenue generated in the two former City redevelopment project areas is pledged
to the City to fund the aforementioned services). This portion of assigned fund
balance as of June 30, 2018 is $9,754,000.
•Additional revenue, expenditures savings, and the RDA loan repayment for 17/18
($2,442,000) are reflected in the increase of $2.3 million to unassigned reserves.
This increase was offset by additional funding to committed reserves as outlined
above.
•The General Fund revenues overall were $6,885,000 or 13% higher than budgeted.
The increased revenue is attributable to higher collection of property, sales, and
hotel taxes. Combined taxes collected were $2.8 million over budget. In addition,
the extraordinary gain (RDA loan repayment and interest earned) of $2.9 million
was not budgeted; these funds are recognized in unassigned reserves and reduce
nonspendable reserves each year. Miscellaneous revenue included two TOT
mitigation measure payments from Legacy Villas ($173,000 for 2016/17 received
in 2017/18).
13
•An extraordinary gain of $2,899,000 is attributed to the Department of Finance’s
approved increase in the quarterly interest rate on the City General Fund loan
repayment (from 3% to 4%, since the inception of the loan in November 2006)
and the $2,442,000 principal loan repayment in 2017/18. 80% of the
extraordinary gain is recognized in the General Fund and 20% in the Housing
Authority Fund.
•Actual expenditures were $12,232,000 less than the final budget, but $3,552,000
higher than 2016/17 expenditures. Expenditure savings of $7,183,000 were
carried over into 2018/19 for continuing appropriations related to operations and
Capital Improvement Projects (CIP).
Housing Authority Fund
The Housing Authority Fund is used to account for the activities of the Housing
Authority; the Housing Authority invests in programs and projects that preserve and
increase the supply of affordable housing in the City. The fund balance decreased by
$40,000 to end the year at $21,690,000.
The decrease is largely attributed to the following:
An extraordinary gain of $725,000 attributed to the Department of Finance’s
approved increase in the quarterly interest rate on the City General Fund loan
repayment (from 3% to 4%, since the inception of the loan in November 2006)
and $610,000 principal loan repayment received in 2017/18.
These gains were offset by one-time decreases in revenue and an increase of
expenditures both related to the disposition of Washington Street Apartments,
which remained affordable housing units, with ownership transferred to the
Coachella Valley Housing Coalition.
Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures for capital
projects. The fund had forty two (42) active Capital Improvement Projects budgeted
during 2017/18. The five most active projects were:
Citywide drainage improvements ($1,443,000)
Pavement Management Plan street improvements ($1,091,000)
Madison Street median landscape improvements ($909,000)
Eisenhower Drive at Montezuma Roundabout ($650,000)
North La Quinta landscape renovations ($641,000)
14
Civic Center Fund
The Civic Center fund is primarily used to collect developer impact fees for the 2004
City Hall expansion and to fund a portion of the debt service on the original City Hall
construction. The City Hall expansion was completed in 2007/08 and the final
repayment of the original City Hall construction bonds is scheduled in 2018/19. A $7.1
million advance from the General Fund is outstanding at the end of 2017/18.
Proprietary funds
The City of La Quinta's proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
The financial activities of the City enterprise fund are addressed in the discussion of
the City’s business-type activities. In addition, the City has four (4) internal service
funds to accumulate resources for equipment and vehicle replacement, information
technology, insurance, and park equipment and facility replacement.
General Fund Budgetary Highlights
Revenue appropriations and transfers in increased by $3,811,000 between the original
($48,552,000) and final amended budget ($52,363,000). The main component of the
increase was due to Measure G sales tax revenue which increased by $3,900,000.
Expenditure appropriations and transfers out increased by $8,938,000 between the
original ($48,181,000) and final amended budget ($57,119,000). Following are the
primary changes:
•$4,860,000 in carryover appropriations from prior fiscal years to 2017/18 to fund
capital improvement projects as approved by City Council
•$1,523,400 added for the establishment of a Post-Retirement Health Benefits
Trust using previously committed General Fund reserves
•$2,000,000 added from unassigned reserves intended for land acquisition and
building improvements, which is being carried over to 2018/19.
15
Capital Asset and Debt Administration
Capital assets
The City’s capital assets for its governmental and business-type activities as of June
30, 2018, were $554,499,000 (net of accumulated depreciation). This includes land,
right of way, buildings and improvements, machinery and equipment, streets and
bridges, and construction in progress. The investment in capital assets decreased by
$10,422,000 in 2017/18 primarily due to the disposition of Washington Street
Apartments and depreciation expense.
The following chart lists the asset categories for governmental and business like
activities net of depreciation:
City of La Quinta Capital Assets (net of depreciation)
2017 2018 2017 2018 2017 2018
Land 74,316,674 66,594,534 39,712,955 39,712,955 114,029,629 106,307,489
Buildings & Improvements 44,119,422 40,659,592 3,771,368 3,556,822 47,890,790 44,216,414
Equipment & Furniture 1,028,468 1,012,039 352,545 316,102 1,381,013 1,328,141
Vehicles 572,048 1,000,246 - - 572,048 1,000,246
Software - - - - - -
Infrastructure 391,078,543 387,495,409 - - 391,078,543 387,495,409
Construction in Progress 9,969,495 14,151,774 - - 9,969,495 14,151,774
TOTAL 521,084,650 510,913,594 43,836,868 43,585,879 564,921,518 554,499,473
Governmental Activities Business-Type ActivitiesDescription Total By Fiscal Year
Major capital asset events included under Governmental Activities included the
following:
Recording infrastructure improvements, street improvements, street right of
way, street sidewalks and curbs and gutters, traffic signals, and street medians
Washington Street Apartments transfer of ownership $10,202,000
Business-type activities
The Golf Course capital asset balance at June 30, 2018, was $43,586,000, net of
accumulated depreciation. The balance decreased by $251,000 reflects accumulated
depreciation expensed in 2017/18.
Additional information on the City of La Quinta’s capital assets can be found in Note 4
to the financial statements.
16
Long-term debt
At the end of 2017/18, the City governmental funds had total outstanding debt of
$3,266,000. Of the total amount, $650,000 represents the outstanding principal for
the 1996 Lease Revenue Bonds (Civic Center construction and improvements), and a
$1,125,000 loan balance for the Eisenhower Drive retention basin land acquisition
(which will be retired in 2018/19).
City of La Quinta Outstanding Debt
The total outstanding debt decreased by $3,518,000 during 2017/18, due to a second
installment payment of $1,125,000 for land acquisition (Eisenhower Drive retention
basin), lease revenue bond principal payment of $615,000, and a decrease of
$1,909,000 is for Washington Street Apartments long-term debt transferred to the
Coachella Valley Housing Coalition as part of the property disposition.
Additional information on long-term debt can be found in Note 5 of the financial
statements.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances.
Questions concerning this information or requests for additional information should
be addressed to the City of La Quinta, Karla Campos, Finance Director, 78-495 Calle
Tampico, La Quinta, CA, 92253, by telephone at 760-777-7703, or by email at
kcampos@laquintaca.gov.
Debt Type:2017 2018
Capital Leases 530,163$ 667,035$
Compensated Absences 830,430 823,842
Land Acquisition Note Payable 2,250,000 1,125,000
Loans Payable 1,908,669 -
Revenue Bonds 1,265,000 650,000
TOTAL 6,784,262$ 3,265,877$
Governmental Activities
This page left blank intentionally.
CITY OF LA QUINTA, CALIFORNA
STATEMENT OF NET POSITION
JUNE 30, 2018
See accompanying notes to basic financial statements.
17
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 112,387,200$ 242,814$ 112,630,014$
Receivables:
Accounts 907,796 58,517 966,313
Taxes 2,829,015 -2,829,015
Notes and loans 23,013,023 -23,013,023
Accrued interest 3,969,350 1,212 3,970,562
Internal balances 5,468,718 (5,468,718) -
Prepaid costs 733,789 -733,789
Deposits - 250,000 250,000
Due from other governments 39,991,141 -39,991,141
Inventories - 70,855 70,855
Land held for resale 8,320,000 -8,320,000
Capital assets not being depreciated 366,233,651 39,712,955 405,946,606
Capital assets, net of depreciation 144,679,943 3,872,925 148,552,868
Total Assets 708,533,626 38,740,560 747,274,186
Deferred Outflows of Resources:
Deferred amounts related to OPEB 1,523,400 -1,523,400
Deferred amounts related to pensions 3,667,012 -3,667,012
Total Deferred Outflows of Resources 5,190,412 - 5,190,412
Liabilities:
Accounts payable 3,300,811 322,392 3,623,203
Accrued liabilities 190,873 -190,873
Accrued interest 50,493 -50,493
Unearned revenue 1,761,096 -1,761,096
Deposits payable 7,835,467 35,500 7,870,967
Due to other governments 1,650,976 -1,650,976
Noncurrent liabilities:
Due within one year 1,894,097 -1,894,097
Due in more than one year 1,371,780 -1,371,780
Total OPEB liability 1,380,949 -1,380,949
Net pension liability 12,612,523 -12,612,523
Total Liabilities 32,049,065 357,892 32,406,957
Deferred Inflows of Resources:
Deferred amounts related to pensions 605,946 -605,946
Net Position:
Net investment in capital assets 510,913,594 43,585,880 554,499,474
Restricted for:
Planning and development projects 22,607,600 -22,607,600
Public safety 401,557 -401,557
Public works 2,033,627 -2,033,627
Capital projects 4,204,168 -4,204,168
Community services 10,016,652 -10,016,652
Unrestricted 130,891,829 (5,203,212) 125,688,617
Total Net Position 681,069,027$ 38,382,668$ 719,451,695$
Primary Government
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
18
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
General government 8,869,174$ 883,153$ 986,125$ 187,282$
Public safety 22,508,088 367,848 12,299 161,824
Planning and development 4,352,134 724,499 85,880 1,167,783
Community services 9,231,268 442,656 1,973,481 -
Public works 15,580,975 1,054,902 1,202,131 2,938,171
Interest on long-term debt 1,468,971 - - -
Total Governmental Activities 62,010,610 3,473,058 4,259,916 4,455,060
Business-Type Activities:
Golf Course 4,318,463 3,567,718 - -
Total Primary Government 66,329,073$ 7,040,776$ 4,259,916$ 4,455,060$
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Other taxes
Motor vehicle in lieu - unrestricted
Investment income
Other
Extraordinary Item
Transfers
Total General Revenues, Extraordinary Items and Transfers
Change in Net Position
Net Position at Beginning of Year, as restated
Net Position at End of Year
Program Revenues
See accompanying notes to basic financial statements.
19
Governmental Business-Type
Activities Activities Total
(6,812,614)$ -$ (6,812,614)$
(21,966,117) - (21,966,117)
(2,373,972) - (2,373,972)
(6,815,131) - (6,815,131)
(10,385,771) - (10,385,771)
(1,468,971) - (1,468,971)
(49,822,576) - (49,822,576)
- (750,745) (750,745)
(49,822,576)$ (750,745)$ (50,573,321)$
15,887,015 - 15,887,015
10,752,788 - 10,752,788
18,956,985 - 18,956,985
1,977,179 - 1,977,179
345,187 - 345,187
718,472 - 718,472
3,941,348 - 3,941,348
803,654 3,511 807,165
649,566 - 649,566
3,624,121 - 3,624,121
(434,000) 434,000 -
57,222,315 437,511 57,659,826
7,399,739 (313,234) 7,086,505
673,669,288 38,695,902 712,365,190
681,069,027$ 38,382,668$ 719,451,695$
Primary Government
Net (Expense) Revenue and Changes in Net Position
CITY OF LA QUINTA, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
See accompanying notes to basic financial statements.
20
Housing Capital
General Authority Improvement Civic Center
Assets:
Pooled cash and investments 74,640,227$ 12,080,017$ 1,448,073$ -$
Receivables:
Accounts 707,510 155,486 44,800 -
Taxes 2,684,368 - - -
Notes and loans - 23,013,023 - -
Accrued interest 147,881 3,758,290 - -
Prepaid costs 90,657 - - -
Due from other governments 31,169,018 7,402,927 448,702 -
Due from other funds 364,115 - - -
Advances to other funds 14,954,085 - - -
Land held for resale 8,320,000 - - -
Total Assets 133,077,861$ 46,409,743$ 1,941,575$ -$
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable 2,511,587$ 16,553$ 438,249$ -$
Accrued liabilities 188,383 2,490 - -
Unearned revenues 39,101 - 1,721,995 -
Deposits payable 7,812,959 22,508 - -
Due to other governments 78,419 - - -
Due to other funds - - - -
Advances from other funds - - - 7,103,053
Total Liabilities 10,630,449 41,551 2,160,244 7,103,053
Deferred Inflows of Resources:
Unavailable revenue 623,845 24,678,005 128,893 -
Fund Balances:
Nonspendable:
Prepaid costs 90,657 - - -
Land held for resale 8,320,000 - - -
Advances to other funds 14,954,085 - - -
Due from other governments 29,611,707 - - -
Restricted for:
Planning and development projects - 21,690,187 - -
Public safety - - - -
Community services - - - -
Public works - - - -
Capital projects - - - -
Committed to:
Natural Disaster Reserve 7,400,000 - - -
Economic Disaster Reserve 8,140,000 - - -
Cash Flow Reserve 5,000,000 - - -
Capital Replacement Reserve 5,000,000 - - -
Pension Trust 2,000,000 - - -
Carryovers 2,186,500 - - -
Assigned for:
Public safety (Note 13b)9,754,327 - - -
Sales Tax Reserve 5,169,970 - - -
Capital projects (Note 13b)4,996,815 - - -
Unassigned 19,199,506 - (347,562) (7,103,053)
Total Fund Balance 121,823,567 21,690,187 (347,562) (7,103,053)
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 133,077,861$ 46,409,743$ 1,941,575$ -$
Special Revenue Funds Capital Projects Funds
21
Other Total
Governmental Governmental
Funds Funds
17,506,092$ 105,674,409$
-907,796
144,647 2,829,015
-23,013,023
45,121 3,951,292
-90,657
970,494 39,991,141
-364,115
-14,954,085
-8,320,000
18,666,354$ 200,095,533$
213,216$ 3,179,605$
-190,873
-1,761,096
-7,835,467
1,572,557 1,650,976
6,057 6,057
2,382,315 9,485,368
4,174,145 24,109,442
874,054 26,304,797
-90,657
-8,320,000
-14,954,085
-29,611,707
917,413 22,607,600
401,557 401,557
10,016,652 10,016,652
2,033,627 2,033,627
4,204,168 4,204,168
-7,400,000
-8,140,000
-5,000,000
-5,000,000
-2,000,000
-2,186,500
-9,754,327
-5,169,970
-4,996,815
(3,955,262) 7,793,629
13,618,155 149,681,294
18,666,354$ 200,095,533$
This page left blank intentionally.
CITY OF LA QUINTA, CALIFORNIA
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
See accompanying notes to basic financial statements.
22
Fund Balances of Governmental Funds 149,681,294$
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets net of accumulated depreciation have not been included
as current financial resources in governmental fund activity 495,932,742
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the governmental funds
Bonds payable (650,000)$
Capital lease payable (23,300)
Loans payable (1,125,000)
Compensated absences (823,842)
Net pension liability (12,612,523)
Total OPEB liability (1,380,949) (16,615,614)
Deferred outflows related to pensions 3,667,012
Deferred outflows related to OPEB 1,523,400
Deferred inflows related to pensions (605,946)
Accrued interest payable has not been reported in the governmental funds (50,493)
Revenues reported as unavailable revenue in the governmental funds are recognized
in the statement of activities.26,304,797
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds are included in governmental activities
of the statement of net position 21,231,835
Net Position of Governmental Activities 681,069,027$
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
23
Special Revenue Funds
Housing Capital
General Authority Improvements Civic Center
Revenues:
Taxes 44,116,002$ -$ -$ -$
Assessments - - - -
Licenses and permits 1,394,820 - - -
Intergovernmental 7,467,753 304,474 730,412 -
Charges for services 1,279,864 - - -
Use of money and property 643,171 959,554 (9,486) 17
Fines and forfeitures 375,390 - - -
Developer participation - - 324,943 145,477
Miscellaneous 1,033,808 98,109 - -
Total Revenues 56,310,808 1,362,137 1,045,869 145,494
Expenditures:
Current:
General government 7,733,978 - - -
Public safety 22,403,445 - - -
Planning and development 3,594,538 533,221 126,009 -
Community services 3,256,837 259,000 - -
Public works 1,223,285 - - -
Capital outlay 850,408 - 7,390,754 -
Debt service:
Principal retirement - 51,988 - -
Interest and fiscal charges -1,282,876 - 79,286
Total Expenditures 39,062,491 2,127,085 7,516,763 79,286
Excess (deficiency) of revenues
over (under) expenditures 17,248,317 (764,948) (6,470,894) 66,208
Other Financing Sources (Uses):
Transfers in 38,048 - 6,302,130 -
Transfers out (5,824,567) - --
Total Other Financing Sources (Uses) (5,786,519) - 6,302,130 -
Extraordinary Item:
Successor Agency loan principal 2,899,296 724,825 - -
Net change in fund balances 14,361,094 (40,123) (168,764) 66,208
Fund Balances, Beginning of Year, as restated 107,462,473 21,730,310 (178,798) (7,169,261)
Fund Balances, End of Year 121,823,567$ 21,690,187$ (347,562)$ (7,103,053)$
Capital Projects Funds
24
Other Total
Governmental Governmental
Funds Funds
815,248$ 44,931,250$
950,541 950,541
-1,394,820
4,052,620 12,555,259
-1,279,864
795,427 2,388,683
-375,390
1,064,208 1,534,628
64,140 1,196,057
7,742,184 66,606,492
3,133 7,737,111
104,643 22,508,088
56,821 4,310,589
1,720,246 5,236,083
2,922,850 4,146,135
774,699 9,015,861
615,000 666,988
98,209 1,460,371
6,295,601 55,081,226
1,446,583 11,525,266
1,092,162 7,432,340
(1,950,540) (7,775,107)
(858,378) (342,767)
-3,624,121
588,205 14,806,620
13,029,950 134,874,674
13,618,155$ 149,681,294$
CITY OF LA QUINTA, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
25
Net Change in Fund Balances - Total Governmental Funds 14,806,620$
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets are allocated over their estimated useful lives
as depreciation expense. Adjustments for capital outlay, net of asset deletions and
the net depreciation expense is reported in the governmental activities.(10,095,613)
This issuance of long-term debt liabilities provides current financial resources in
the governmental funds, but issuing debt increases the long-term liabilities in
the statement of net position. Repayment of bond principal is an expenditure
in the governmental fund, but the repayment reduces long-term liabilities in the
statement of net position
Principal repayments 615,000
Capital lease activity 26,620
Loan repayments 3,033,669 3,675,289
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.(7,953)
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.6,588
Governmental funds report OPEB contributions as expenditures. However, in the Statement
of Activities, OPEB expense is measured as the change in total OPEB liability and the
amortization of deferred outflows related to OPEB. This amount represents the
net change in OPEB related amounts.1,339,227
Pension expense recognizes the change in net pension liability and therefore is not recognized (1,326,436)
under the current resources measurement and (decreases)/increases from net position.
Revenues reported as unavailable revenue in the governmental funds are recognized (676,739)
as operating contributions and grants in the statement of activities
Internal service funds are used by management to charge the costs of certain activities,
such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with (321,244)
governmental activities
7,399,739$
Change in net position of governmental activities
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2018
See accompanying notes to basic financial statements.
26
Business-Type Governmental
Activities Activities
Enterprise Funds Internal Service
Golf Course Funds
Assets:
Current:
Cash and investments 242,814$ 6,712,791$
Receivables:
Accounts 58,517 -
Accrued interest 1,212 18,058
Prepaid costs - 643,132
Deposits 250,000 -
Inventories 70,855 -
Total Current Assets 623,398 7,373,981
Noncurrent:
Capital assets - net of accumulated depreciation 43,585,880 14,980,852
Total Assets 44,209,278 22,354,833
Liabilities:
Current:
Accounts payable 322,392 121,206
Deposits payable 35,500 -
Due to other funds - 358,057
Current portion of capital leases - 107,450
Total Current Liabilities 357,892 586,713
Noncurrent Liabilities:
Advances from other funds 5,468,718 -
Long-term portion of capital leases - 536,285
Total Liabilities 5,826,610 1,122,998
Net Position:
Net investment in capital assets 43,585,880 14,337,117
Unrestricted (5,203,212) 6,894,718
Total Net Position 38,382,668$ 21,231,835$
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
27
Business-Type Governmental
Activities Activities -
Enterprise Funds Internal
Golf Course Service Funds
Operating Revenues:
Sales and service charges 3,567,718$ 2,603,142$
Operating Expenses:
Administration and general 42,113 484,710
Fuel and oil - 54,198
Maintenance and parts - 182,283
Contract services 3,860,634 622,469
Software and supplies - 937,994
Depreciation expense 250,989 841,327
Other 92,871 -
Total Operating Expenses 4,246,607 3,122,981
Operating Income (Loss) (678,889) (519,839)
Nonoperating Revenues (Expenses):
Interest revenue 3,511 53,071
Miscellaneous revenues - 17,365
Interest expense (71,856) (647)
Loss on disposal of capital assets - 220,039
Total Nonoperating Revenues (Expenses) (68,345) 289,828
Income (Loss) before transfers (747,234) (230,011)
Transfers in 434,000 -
Transfers out - (91,233)
Total Transfers 434,000 (91,233)
Changes in Net Position (313,234) (321,244)
Net Position, Beginning of the Year 38,695,902 21,553,079
Net Position at End of Year 38,382,668$ 21,231,835$
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
28
Business-Type Governmental
Activities- Activities-
Enterprise Funds Internal
Golf Course Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users 3,566,280$ -$
Cash received from interfund services provided -2,602,013
Cash payments to suppliers for goods and services (3,991,405) (2,285,869)
Net Cash Provided by (Used for)
Operating Activities (425,125) 316,144
Cash Flows from Non-Capital Financing Activities:
Cash transfers in 434,000 -
Other receipts 3,986
Advance from other funds 71,856 -
Net Cash provided by
Non-Capital Financing Activities 505,856 3,986
Cash Flows from Capital and Related Financing Activities:
Capital contributions -
Acquisition and construction of capital assets -(602,392)
Interest paid on capital debt (71,856) (647)
Proceeds from sales of capital assets -220,039
Net Cash Provided by (Used for) Capital and
Related Financing Activities (71,856) (383,000)
Cash flows from investing activities:
Interest received on investments 2,750 (33,167)
Net Increase (Decrease) in Cash and
Cash Equivalents 11,625 (96,037)
Cash and Cash Equivalents at Beginning of Year 231,189 6,808,828
Cash and Cash Equivalents at End of Year 242,814$ 6,712,791$
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF CASH FLOWS, (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
29
Business-Type Governmental
Activities- Activities-
Enterprise Funds Internal
Golf Course Service Funds
Reconciliation of Operating Income to Net Cash
Provided by (Used for) Operating Activities:
Operating income (loss) (678,889)$ (519,839)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 250,989 841,327
(Increase) decrease in accounts receivable (1,438) -
(Increase) decrease in inventories (10,743) -
(Increase) decrease in due from other governments 3,257 -
(Increase) decrease in prepaid expense -43,497
Increase (decrease) in accounts payable 12,163 97,117
Increase (decrease) in accrued liabilities (464)(1,931)
Increase (decrease) due to other funds -(144,027)
Total Adjustments
Net Cash Provided by (Used for)
by Operating Activities (425,125)$ 316,144$
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2018
See accompanying notes to basic financial statements.
30
Pension Trust Private-Purpose
Fund Trust Fund
Successor
Agency Supplemental Agency of the
Funds Pension Plan former RDA
Assets:
Cash and investments 171,794$ 115,894$ 43,949,992$
Receivables:
Notes and loans - - 1,721,526
Accrued interest 77 310 112,648
Prepaid asset - - 541,760
Due from other governments - - 1,572,557
Restricted assets:
Cash and investments with fiscal agents - - 2,435
Total Assets 171,871$ 116,204$ 47,900,918$
Deferred Outflows of Resources:
Deferred charge on refunding - 10,883,653
Liabilities:
Accounts payable - - 45,431
Accrued interest - - 3,058,466
Deposits payable 171,871 - -
Long-term liabilities:
Due in one year - - 11,473,066
Due in more than one year - - 230,726,112
Total Liabilities 171,871$ - 245,303,075
Net Position (Deficit):
Restricted for pensions 116,204$
Held in trust for private purposes (186,518,504)$
CITY OF LA QUINTA, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2018
See accompanying notes to basic financial statements.
31
Pension Trust Private-Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan Former RDA
Additions:
Taxes -$ 20,726,954$
Net investment income 776 127,665
Total Additions 776 20,854,619
Deductions:
Administrative expenses 12,833 190,979
Contractual services - 2,441,836
Interest and fiscal charges - 9,787,286
Total Deductions 12,833 12,420,101
Extraordinary Item:
Successor Agency loan principal - (3,624,121)
Changes in Net Position (12,057) 4,810,397
Net Position/(Deficit) - Beginning of the Year 128,261 (191,328,901)
Net Position/(Deficit) - End of the Year 116,204$ (186,518,504)$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
32
Note Description Page Number
1 Summary of Significant Accounting Policies 33
2 Cash and Investments 44
3 Notes Receivable 48
4 Capital Assets 49
5 Changes in Long-Term Liabilities – Governmental Activities 51
6 Interfund Receivables and Payables 55
7 Interfund Transfers 56
8 Defined Benefit Pension Plan 56
9 Defined Contribution Plans 60
10 Other Post Employment Benefit Plan (OPEB) 60
11 Risk Management 63
12 Fund Balance 64
13 Golf Course Management Agreement 66
14 Construction Commitments 67
15 Reimbursement Agreements 67
16 Successor Agency Trust for Assets of Former Redevelopment Agency 68
17 Extraordinary Item 74
18 Prior Period Adjustment 74
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
33
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Reporting Entity
The City of La Quinta (City) was incorporated May 1, 1982, under the general laws of the State of
California. In November 1996, the City became a charter City. The City operates under the Council –
Manager form of government.
The City provides many community services including public safety, highway and street maintenance,
health and social services, cultural and leisure services, public improvements, planning and zoning
services, and community development services.
The accounting policies of the City conform to generally accepted accounting principles as applicable to
governments. As required by generally accepted accounting principles, these financial statements present
the City and its component units, which are entities for which the City is considered to be financially
accountable. The City is considered to be financially accountable for an organization if the City appoints
a voting majority of that organization’s governing body and the City is able to impose its will on that
organization or there is a potential for that organization to provide specific financial benefits to or impose
specific financial burdens on the City. The City is also considered to be financially accountable if an
organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or
issue bonded debt without approval from the City). In certain cases, other organizations are included as
component units if the nature and significance of their relationship with the City are such that their
exclusion would cause the City’s financial statements to be misleading or incomplete.
All of the City’s component units are considered to be blended component units. Blended component
units, although legally separate entities, are, in substance, part of the City’s operations and so data from
these units are reported with the interfund data of the primary government.
The following organizations are considered to be component units of the City:
City of La Quinta Public Financing Authority
The La Quinta Public Financing Authority (Financing Authority) was established pursuant to a Joint
Exercise of Powers Agreement dated November 19, 1991, between the City and the Former
Redevelopment Agency (now Successor Agency). The purpose of the Financing Authority is to
provide financing necessary for the construction of various public improvements through the issuance
of debt. Although the Financing Authority is legally separate, it is reported as if it were part of the
City because the City Council also serves as the governing board of the Financing Authority and the
management of the City has operational responsibility for the Financing Authority. Separate financial
statements of the Financing Authority are not prepared.
City of La Quinta Housing Authority
The La Quinta Housing Authority (Housing Authority) was established pursuant to California
Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009.
The purpose of the Housing Authority is to provide safe and sanitary housing opportunities for La
Quinta residents. Although the Housing Authority is legally separate, it is reported as if it were part
of the City because the City Council also serves as the governing board of the Housing Authority and
the management of the City has operational responsibility for the Housing Authority. Separate
financial statements of the Housing Authority are not prepared.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
34
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
b. Government-Wide and Fund Financial Statements
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the financial statements
Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. All fiduciary activities are reported only in the fund financial statements.
Governmental activities, which normally are supported by taxes, intergovernmental revenues, and
other nonexchange transactions, are reported separately from business-type activities, which rely to a
significant extent on fees and charges to external customers for support. Likewise, the primary
government is reported separately from certain legally separate component units for which the
primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segments are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include charges for services, special
assessments, and payments made by parties outside of the reporting City’s citizenry if that money is
restricted to a particular program. Program revenues are netted with program expenses in the
statement of activities to present the net cost of each program. Taxes and other items not properly
included among program revenues are reported instead as general revenues. Amounts paid to acquire
capital assets are capitalized as assets in the government-wide financial statements, rather than
reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government-
wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term
indebtedness of the reporting government are reported as a reduction of the related liability, rather
than as expenditures.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate
funds, each of which is considered to be a separate accounting entity. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows
of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or
expenses, as appropriate. Governmental resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by which spending
activities are controlled.
Fund financial statements for the governmental, proprietary, and fiduciary funds are presented after
the government-wide financial statements. These statements display information about major funds
individually and nonmajor funds in the aggregate for governmental and proprietary funds. Fiduciary
statements include financial information for fiduciary funds. Fiduciary funds of the city primarily
represent assets held by the City in a custodial capacity for other individuals or organizations.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
35
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated.
The governmental activities column incorporates data from governmental funds and internal service
funds, while business-type activities incorporate data from the government's enterprise funds.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis
of accounting. Their revenues are recognized when they become measurable and available as net
current assets. Measurable means that the amounts can be estimated, or otherwise determined.
Available means that the amounts were collected during the reporting period or soon enough
thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a
60-day availability period.
Revenue recognition is subject to the measurable and availability criteria for the governmental funds
in the fund financial statements. Exchange transactions are recognized as revenues in the period in
which they are earned (i.e., the related goods or services are provided). Locally imposed delivered tax
revenues are recognized as revenues in the period in which the underlying exchange transaction on
which they are based takes place. Imposed nonexchange transactions are recognized as revenues in
the period for which they were imposed. If the period of use is not specified, they are recognized as
revenues when an enforceable legal claim to the revenues arises or when they are received, whichever
occurs first. Government-mandated and voluntary non-exchange transactions are recognized as
revenues when all applicable eligibility requirements have been met.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
In the fund financial statements, governmental funds are presented using the current financial
resources measurement focus. This means that only current assets, deferred outflows of resources,
current liabilities, and deferred inflows of resources are generally included on their balance sheets.
The reported fund balance is considered to be a measure of “available spendable resources”.
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses). Accordingly, they are said to present a summary
of sources and uses of “available spendable resources” during a period.
Noncurrent portions of long-term receivables due to governmental funds are reported on their balance
sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate,
however, that they should not be considered “available spendable resources”, since they do not
represent net current assets. Recognition of governmental fund type revenues represented by
noncurrent receivables are deferred until they become current receivables. Noncurrent portions of
other long-term receivables are offset by fund balance reserve accounts.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
36
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c.Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Because of their spending measurement focus, expenditure recognition for governmental fund types
excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets,
such long-term amounts are not recognized as governmental fund type expenditures or fund
liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources
were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other
financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are
reported as fund expenditures.
Proprietary Funds
The City’s enterprise and internal service funds are proprietary funds. In the fund financial
statements, proprietary funds are presented using the accrual basis of accounting. Revenues are
recognized when they are earned and expenses are recognized when the related goods or services are
delivered. In the fund financial statements, proprietary funds are presented using the economic
resources measurement focus. This means that all assets, all deferred outflows of resources, all
liabilities, and all deferred inflows of resources (whether current or noncurrent) associated with their
activity are included on their balance sheets. Proprietary fund type operating statements present
increases (revenues) and decreases (expenses) in total net position.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial
statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a
liability in the proprietary fund financial statements, rather than as an Other Financing Source.
Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of
the related liability, rather than as expenditures.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating
revenues of the Enterprise Funds are charges to customers for sales and services.
Operating expenses for Enterprise Funds include the cost of sales and services, administrative
expenses and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
Fiduciary Funds
The pension and private-purpose trust funds are reported using the economic resources measurement
focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes
the accrual basis of accounting for reporting its assets and liabilities.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
37
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
d.Major Funds, Internal Service Funds and Fiduciary Fund Types
The City’s major governmental funds are as follows:
General Fund – This fund is the primary fund of the City and is used to account for all revenue and
expenditures of the City not legally restricted as to use. A broad range of municipal activities are
provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community
Development, Police Services, Public Works, and Community Services.
Housing Authority- This fund accounts for the combined housing activities of the Housing Authority
in Project Areas 1 and 2 which promotes and provides for quality housing. Revenues will be
provided from the receipts and collections of rents, notes and loans. All monies in the Housing
Authority must be used in accordance with the applicable housing-related provisions of the California
Housing Authorities Law.
Capital Improvement Fund – This capital projects fund is used to account for the planning, design and
construction of various capital projects throughout the City.
Civic Center Fund – This fund accounts for the accumulation of resources provided through
developer fees for the acquisition, construction, or improvement of the Civic Center.
The City’s major proprietary fund is as follows:
Golf Course – This fund accounts for the activities of the SilverRock Golf Resort.
Other fund types of the City are as follows:
Debt Service Fund – This fund accounts for the servicing of long-term debt.
Internal Service Funds:
Equipment Replacement Fund – This fund accounts for equipment and vehicle maintenance and
replacement services provided to other departments on a cost-reimbursement basis.
Information Technology Fund – This fund is used to account for the acquisition for computer
equipment, maintenance, and services to support information systems within the City. Costs are
reimbursed by the benefiting departments.
Park Equipment and Facilities Fund – This fund is used to account for the purchase and replacement
of City owned park facility infrastructure. Costs are reimbursed by the benefiting departments.
Insurance Fund – This fund accounts for City-wide insurances: liability, property, earthquake,
workers compensation and risk management. Expenses are shared among departments on an
allocation basis.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
38
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
d.Major Funds, Internal Service Funds and Fiduciary Fund Types (Continued)
Fiduciary Funds:
Agency Fund – This fund accounts for assets held by the City as an agent for assessment district
bondholders.
Pension Trust Fund – This fund accounts for the activities of the Supplemental Pension Savings Plan,
which accumulates resources for pension benefit payments to qualified government employees.
Private-Purpose Trust Fund – This fund accounts for the assets and liabilities of the Former Agency
and its allocated revenue to pay estimated installment payments of enforceable obligations until
obligations of the Former Agency are paid in full and assets have been liquidated.
e.Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position
or Equity
Cash and Investments
For financial reporting purposes, investments are adjusted to their fair value. Changes in fair value
that occur during a fiscal year are recognized as investment income reported for that fiscal year.
Investment income includes interest earnings, changes in fair value, and any gains or losses realized
upon the liquidation or sale of investments. All investments are valued at fair value.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s
share in this pool is displayed in the accompanying financial statements as cash and investments.
Investment income earned by the pooled investments is allocated to the various funds based on each
fund’s average cash and investment balance.
Cash and Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid
investments that are both readily convertible to known amounts of cash or so near their maturity that
they present insignificant risk of changes in value because of changes in interest rates. Cash
equivalents also represent the proprietary fund’s share in the City’s cash and investment pool. Cash
equivalents have an original maturity date of three months or less from the date of purchase. For
purposes of the statement of cash flows, the entire balance of cash and investments on the combined
balance sheet for the proprietary funds is considered cash and cash equivalents.
Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption
method of accounting for inventories.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
39
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position
or Equity (Continued)
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. The City utilizes the
consumption method, in which prepaid items are accounted for in the period that the benefit was
received.
Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are available and
at an estimated historical cost where no historical records exist. Contributed capital assets are valued
at their acquisition value at the date of the contribution. Generally, capital asset purchases in excess
of $5,000 are capitalized if they have an expected useful life of three years or more.
Capital Assets include public domain (infrastructure) consisting of certain improvements including
roads, streets, sidewalks, medians, and storm drains.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-
line method in the government-wide financial statements and in the fund financial statements of the
proprietary funds. Depreciation is charged as an expense against operations and accumulated
depreciation is reported on the respective balance sheet.
The following schedule summarizes capital asset useful lives:
Building and improvements 10-30 years
Equipment and furniture 3-20 years
Vehicles 5-10 years
Infrastructure 10-50 years
Software 5-10 years
Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 percent of
assessed value, plus other increases approved by the voters. The property taxes are recorded initially
in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La
Quinta accrues only those taxes that are received from the County within ninety days after year-end.
Lien date January 1
Levy date July 1
Due dates November 1 and February 1
Collection dates December 10 and April 10
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
40
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
e.Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position
or Equity (Continued)
Deferred Outflows/Inflows of Resources
In addition to assets, the statements of net position and the governmental fund balance sheet will
sometimes report a separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of net position that
applies to a future period(s) and so will not be recognized as an outflow of resources (expense/
expenditure) until then. Governmental activities recorded deferred outflows of resources related to
pensions and OPEB of $3,667,012 and $1,523,400 respectively.
In addition to liabilities, the statements of net position and governmental fund balance sheet will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of net position that applies
to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The City has reported items on the Governmental Fund Balance Sheet as unavailable revenues that
were not received within the City’s availability period. Additionally Governmental activities
recorded deferred inflows of resources related to pensions of $605,946.
Compensated Absences
Vacation and sick time is vested on a percentage based on number of years employed at the City.
Maximum accumulation of sick and vacation is 40 and 60 days, respectively.
Upon termination or retirement, permanent employees are entitled to receive compensation at their
current base salary for all unused vacation leave. If an employee terminates with a minimum of two
years’ service, the employee is entitled to receive 25 percent of the value of his unused sick leave.
The percentage increases by 25 percent for each five-year period until the employee is entitled to 100
percent of the value of their unused sick leave. This will occur upon the completion of twenty years
of continuous employment. The General Fund resources are used to pay for the accumulated benefits
to employees.
Long-Term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities or proprietary fund type statement of net position. Bond premiums
and discounts are deferred and amortized over the life of the bonds using the effective interest
method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
41
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position
or Equity (Continued)
Fund Balance
In the fund financial statements, governmental funds report the following fund balance classification:
Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form
or (b) legally or contractually required to be maintained intact.
Restricted includes amounts that are constrained on the use of resources by either (a) external
creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through
constitutional provisions or enabling legislation.
Committed includes amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the City’s highest authority, the City Council. The formal action that is
required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution.
Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes,
but are neither restricted nor committed. City Council is authorized to assign amounts to a specific
purpose. The City Council authorizes assigned amounts for specific purposes pursuant to the policy-
making powers granted through a resolution.
Unassigned includes the residual amounts that have not been restricted, committed, or assigned to
specific purposes. The general fund is the only fund that reports a positive unassigned fund balance.
Fund Balance Flow Assumptions – governmental fund financial statements
Sometimes the City of La Quinta will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to
calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the
governmental fund financial statements a flow assumption must be made about the order in which
the resources are considered to be applied.
It is the City’s policy to consider restricted fund balance to have been depleted before using any of the
components of unrestricted fund balance. Further, when the components of unrestricted fund balance
can be used for the same purpose, committed fund balance is depleted first, followed by assigned
fund balance. Unassigned fund balance is applied last.
Net Position Flow Assumption – governmental and proprietary fund financial statements
Sometimes the City of La Quinta will fund outlays for a particular purpose from both restricted (e.g.,
restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to
report as restricted net position and unrestricted net position in the government-wide and proprietary
fund financial statements, a flow assumption must be made about the order in which the resources are
considered to be applied. It is the City’s policy to consider restricted net position to have been
depleted before unrestricted net position is applied.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
42
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
f.Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
g.New Accounting Pronouncements
Adopted in the Current Year
GASB Statement No. 75 – In June 2015, GASB issued Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. Statement 75 establishes new accounting
and financial reporting requirements for governments whose employees are provided with OPEB, as well
as for certain nonemployer governments that have a legal obligation to provide financial support for
OPEB provided to the employees of other entities. The City implemented this Statement effective July 1,
2017.
Effective in Future Fiscal Years
The City is currently evaluating the potential impact of the following issued, but not yet effective,
accounting standards.
GASB Statement No. 83 – In November 2016, GASB issued Statement No. 83, Certain Asset Retirement
Obligations. The objective of this Statement is to provide financial statement users with information
about asset retirement obligations that were not addressed in GASB Standards by establishing uniform
accounting and financial reporting requirements for these obligations. This Statement is effective for
reporting periods beginning after June 15, 2018.
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The
objective of this Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how those activities should be reported. This Statement
is effective for reporting periods beginning after December 15, 2018.
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this
Statement is to better meet the information needs of financial statement users by improving accounting
and financial reporting for leases; enhancing the comparability of financial statements between
governments; and also enhancing the relevance, reliability (representational faithfulness), and consistency
of information about the leasing activities of governments. This Statement is effective for reporting
periods beginning after December 15, 2019.
GASB Statement No. 88 – In March 2018, the GASB issued Statement No. 88, Certain Disclosures
Related to Debt, including Direct Borrowings and Direct Placements. The objective of this Statement is
to improve consistency in the information that is disclosed in the notes to government financial statements
related to debt, including direct borrowings and direct placements, and to provide financial statement
users with additional essential information about debt. This Statement is effective for reporting periods
beginning after June 15, 2018.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
43
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
g. New Accounting Pronouncements (Continued)
GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost
Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the
relevance and comparability of information about capital assets and the cost of borrowing for a reporting
period and (b) to simplify accounting for certain interest costs. This Statement is effective for reporting
periods beginning after December 15, 2019.
GASB Statement No. 90 – In September 2018, the GASB issues Statement No. 90, Majority Equity
Interests, an amendment of GASB Statements No. 14 and No. 61. The objectives of this Statement are to
improve the consistency and comparability of reporting a government’s majority equity interest in a
legally separate organization and to improve the relevance of financial statement information for certain
component units. The Statement is effective for reporting periods beginning after December 15, 2018.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
44
II. DETAILED NOTES ON ALL FUNDS
NOTE 2: CASH AND INVESTMENTS
Cash and investments as of June 30, 2018, are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and investments 112,630,014$
Statement of Fiduciary Net Position:
Cash and investments 44,237,680
Cash and investments with fiscal agent 2,435
Total Cash and Investments 156,870,129$
Cash and investment as of June 30, 2018, consist of the following:
Cash on hand 3,000$
Deposits with financial institutions 15,395,208
Investments 141,471,921
Total Cash and Investments 156,870,129$
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized by the California Government Code and the
City’s investment policy. The table also identifies certain provisions of the California Government Code (or the
City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit
risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions
of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s
investment policy.
Maximum Maximum
Maximum Percentage Investment
Investment Types Maturity Allowed in One Issuer
U.S. Treasury Obligations 5 years None $30 million
U.S. Agency Securities 5 years 30%20-30 million
Local Agency Bonds 5 years 30%30 million
California Local Agency Obligations 5 years 30%30 million
Commercial Paper 90 days 15%5 million
Certificates of Deposit 5 years 30%250,000
Negotiable Certificates of Deposits 5 years 30%250,000
Corporate Notes 5 years 10%5 million
Investment Pools (Riverside County Pool)N/A None None
Money Market Mutual Funds N/A 20%N/A
Local Agency Investment Fund (LAIF)N/A N/A 50 million
Investment Agreements 3 years 10%N/A
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
45
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates.
One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short
term and long term investments and by timing cash flows from maturities so that a portion of the portfolio is
maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed
for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond
trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the
City’s investments by maturity:
1 year
Investment Type Total Or Less 1 to 3 years 3 to 5 years
Certificates of Deposit 16,463,074$ 4,349,302$ 5,491,773$ 6,621,999$
Federal agency securities:
Federal Farm Credit Bank 2,939,295 494,175 1,476,280 968,840
Federal National Mortgage Association 2,961,685 - 2,961,685 -
Federal Home Loan Mortgage Corp 8,559,598 495,390 2,456,950 5,607,258
Federal Home Loan Bank 6,803,135 - 5,807,825 995,310
U.S. Treasury Notes 17,554,030 4,481,185 6,378,065 6,694,780
Corporate Notes 3,446,980 1,981,220 986,580 479,180
Local Agency Investment Fund 72,986,767 72,986,767 - -
Riverside County Pool 9,754,327 9,754,327
Held by Fiscal Agent:
Money Market Mutual Funds 3,030 3,030 - -
Total 141,471,921$ 94,545,396$ 25,559,158$ 21,367,367$
Remaining Maturity (in Years)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. The City's investment policy limits investments in commercial paper and money market mutual
funds to those rated the highest rating as rated by Moody’s or Standard and Poor’s (S&P). Presented below are
the S&P ratings as of year-end:
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
46
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk (Continued)
Investment Type Total AAA AA+AA-
Federal Agency Securities 21,263,713$ -$ 21,263,713$ -$
Corporate Notes 3,446,980 2,474,830 479,180 492,970
Total 24,710,693 2,474,830$ 21,742,893$ 492,970$
Exempt from Credit Risk disclosure:
U.S. Treasury Notes 17,554,030
Not rated:
Certificates of Deposit 16,463,074
Local Agency Investment Pool 72,986,767
Riverside County Pool 9,754,327
Money Market Mutual Funds 3,030
Total investments 141,471,921$
Concentration of Credit Risk
Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows:
Issuer Investment Type
Reported
Amount
Percent of
Porfolio
Federal Home Loan Mortgage Corp Federal Agency Securities 8,559,598$ 6%
Federal Home Loan Bank Federal Agency Securities 6,803,135 5%
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure
of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code
and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to
custodial credit risk for deposits or investments, other than the following provision for deposits: The California
Government Code requires that a financial institution secure deposits made by state or local governmental units
by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so
waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at
least 110 percent of the total amount deposited by the public agencies. California law also allows financial
institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the
secured public deposits.
As a public funds depository Wells Fargo maintains a public funds deposit collateralization program that is
designed to comply with all applicable statutes and regulations governing public funds deposits, including pledge
and perfection of collateral. Accounts holding public funds are labeled as such and trigger collateralization.
Collateral needs are met based on the prior day close of business. However, same-day collateral requests may be
accommodated upon request.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
47
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investment in Riverside County Pool
The City is a voluntary participant in the Riverside County Pooled Investment Fund that is regulated by California
Government Code Section 53646 and managed by the Riverside County Treasurer. The City’s investment in this
pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of
accounting. Investments are reported at fair value. The balance available for withdrawal is based on the
accounting records maintained by the County.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the
California Government Code under the oversight of the Treasurer of the State of California. The fair value of the
City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the
City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized
cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by
LAIF, which are recorded on an amortized cost basis. Deposits and withdrawals are made on the basis of $1 and
not fair value. Accordingly, the City’s measurement of fair value of its investment with LAIF is based on
uncategorized inputs, not defined as a level 1, level 2, or level 3 input.
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other
observable inputs; Level 3 inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2018:
Total 1 2
Investments:
U.S. Treasury Notes 17,554,030$ 17,554,030$ -$
Federal Agency Securities 21,263,713 - 21,263,713
Corporate Notes 3,446,980 - 3,446,980
Certificates of Deposit 16,463,074 - 16,463,074
Total Leveled Investments 58,727,797 17,554,030$ 41,173,767$
Investments with uncategorized inputs:
Local Agency Investment Fund 72,986,767
Riverside County Pool 9,754,327
Held by Fiscal Agent
Money Market Mutual Funds 3,030
Total Investments 141,471,921$
Level
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
48
NOTE 3: NOTES RECEIVABLE
In September 1994, the former redevelopment agency sold certain real property to LINC Housing for $2,112,847.
The property was used to construct single-family homes and rental units to increase the City's supply of low and
moderate income housing. The note bears interest at 6 percent per annum and is due in full on June 15, 2029. On
February 1, 2012, this receivable was transferred to the Housing Authority, which took over the housing function
of the former redevelopment agency upon dissolution. The balance at June 30, 2018, including accrued interest of
$2,774,717 is $4,810,105.
In February 2011, the former redevelopment agency entered into Disposition and Development Agreement with
Coral Mountain Partners L.P. (“Coral Mountain”) to fund up to $29,000,000 for the construction of a low and
moderate income apartment complex with an estimated completion date of the apartment complex of March 2014.
The former redevelopment agency’s $29,000,000 loan is evidenced by a Promissory Note executed by Coral
Mountain (“Note”). Interest on the outstanding note amount will bear simple interest of 1 percent. Principal and
interest will be repaid on or before May 1st of each year from annual residual receipts as defined in the Note once
the project is completed and may be repaid early if the property is refinanced, or if the property is transferred to
another entity. On February 1, 2012, this receivable was transferred to the Housing Authority which took over the
housing function of the former redevelopment agency upon dissolution. As of June 30, 2018, the outstanding
principal balance is $20,954,110 and the outstanding interest balance is $949,177.
Other notes receivable as of February 1, 2012, included in the Housing Authority which took over the housing
function of the former redevelopment agency upon dissolution totaled $23,525 at June 30, 2018.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
49
NOTE 4: CAPITAL ASSETS
Capital asset activity for governmental activities for the year ended June 30, 2018, is as follows:
Balance at Balance at
July 1, 2017 Additions Deletions Transfers June 30, 2018
Governmental activities:
Capital assets, not being depreciated:
Land 74,316,674$ 613,122$ 8,335,262$ -$ 66,594,534
Right of way 284,928,794 558,549 - - 285,487,343
Construction-in-progress 9,969,495 7,565,886 195,608 (3,187,999) 14,151,774
Total Capital Assets,
Not Being Depreciated 369,214,963 8,737,557 8,530,870 (3,187,999) 366,233,651
Capital assets, being depreciated:
Buildings and improvements 74,640,811 58,531 2,736,127 746,504 72,709,719
Equipment and furniture 3,482,922 233,283 215,494 - 3,500,711
Vehicles 1,874,386 500,868 634,434 - 1,740,820
Infrastructure 221,445,816 - - 2,441,495 223,887,311
Total Capital Assets,
Being Depreciated 301,443,935 792,682 3,586,055 3,187,999 301,838,561
Less accumulated depreciation for:
Buildings and improvements 30,521,389 2,303,974 775,236 - 32,050,127
Equipment and furniture 2,454,454 249,712 215,494 - 2,488,672
Vehicles 1,302,338 72,670 634,434 - 740,574
Infrastructure 115,296,067 6,583,178 - - 121,879,245
Total Accumulated
Depreciation 149,574,248 9,209,534 1,625,164 - 157,158,618
Total Capital Assets,
Being Depreciated, Net 151,869,687 (8,416,852) 1,960,891 3,187,999 144,679,943
Governmental Activities
Capital Assets, Net 521,084,650$ 320,705$ 10,491,761$ -$ 510,913,594
Depreciation expense was charged to the following functions in the Statement of Activities:
General governments 653,918$
Planning and development 24,628
Community services 1,850,644
Public works 6,680,344
9,209,534$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
50
NOTE 4: CAPITAL ASSETS (CONTINUED)
Capital asset activity for business-type activities for the year ended June 30, 2018, is as follows:
Balance at Balance at
July 1, 2017 Additions Deletions June 30, 2018
Business-Type activities:
Capital assets, not being depreciated:
Land 39,712,955$ -$ -$ 39,712,955
Capital assets, being depreciated:
Buildings and improvements 6,636,465 - - 6,636,465
Equipment and furniture 2,379,238 - 332,526 2,046,712
Vehicles 20,348 - 20,348 -
Software 20,255 - - 20,255
Total Capital Assets,
Being Depreciated 9,056,306 - 352,874 8,703,432
Less accumulated depreciation for:
Buildings and improvements 2,865,097 214,546 - 3,079,643
Equipment and furniture 2,026,693 36,443 332,526 1,730,610
Vehicles 20,348 - 20,348 -
Software 20,255 - - 20,255
Total Accumulated
Depreciation 4,932,393 250,989 352,874 4,830,508
Total Capital Assets,
Being Depreciated, Net 4,123,913 (250,989) - 3,872,924
Business-Type Activities
Capital Assets, Net 43,836,868$ (250,989)$ -$ 43,585,879
Depreciation expense was charged to the following functions in the Statement of Activities:
Golf Course 250,989$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
51
NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES
Changes in Long-Term Debt
The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended
June 30, 2018:
Balance at Balance Due within
July 1, 2017 Additions Deletions June 30, 2018 One year
City:
Compensated absences payable 830,430$ 817,254$ 823,842$ 823,842$ 823,842$
Copier lease payable 49,920 -26,620 23,300 7,173
Dell Computer lease 14,699 -9,587 5,112 4,474
De Lage Landen Public Finance 37,916 -37,916 - -
Fleet Vehicle Lease 427,628 293,332 82,337 638,623 107,450
Note payable - Eisenhower Dr. Property 2,250,000 -1,125,000 1,125,000 1,125,000
Housing Authority:
Provident Loan 1,280,221 -1,280,221 - -
U.S. Department of Agriculture 628,448 -628,448 - -
Financing Authority:
Revenue bonds 1,265,000 -615,000 650,000 650,000
6,784,262$ 1,110,586$ 4,628,971$ 3,265,877$ 2,717,939$
A description of individual issues of debt (excluding defeased bonds) outstanding as of June 30, 2018, is as
follows:
Copier Leases Payable
In June 2013, the City entered into a 5-year lease agreement for photocopiers for $71,045 maturing in monthly
increments of $1,456, with interest payable monthly at 8.47 percent. This lease agreement qualifies as a capital
lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease
payments at the inception date.
On April 1, 2015, the City leased an additional copier for $9,000 maturing in monthly increments of $1,728, with
interest payable monthly at 8.47 percent.
The minimum future lease obligations and the net present value of the lease payments as of June 30, 2018, are as
follows:
Year Ending
June 30, Total
2019 8,160$
2020 8,160
2021 8,160
2022 680
Total Payments 25,160
Less amount representing interest (1,860)
Outstanding Principal 23,300$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
52
NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES
(CONTINUED)
Dell Computer Lease Payable
In April 2014, the City entered into a 5-year lease agreement for Dell computers for $90,629 maturing in annual
increments ranging from $20,693 to $408, with interest payable annually at 4.79%. In August 2015, the City
entered into another 5-year lease for Dell computers for $17,682 maturing in annual increments from $16,620 to
$639, with interest payable annually at 4.07%. This lease agreement qualifies as a capital lease for accounting
purposes and therefore, has been recorded at the present value of the future minimum lease payments at the
inception date.
The minimum future lease obligations and the net present value of the lease payments as of June 30, 2018, are as
follows:
Year Ending
June 30, Total
2019 4,685$
2020 664
Total Payments 5,349
Less amount representing interest (236)
Outstanding Principal 5,113$
Technology Hardware Lease Payable
In 2016, the City entered into a 3-year lease agreement for network firewall and switches for $113,748 maturing
in three annual installments of $37,916, with no interest. This lease agreement qualifies as a capital lease for
accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments
at the inception date. The lease was paid off in the current year.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
53
NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES
(CONTINUED)
Fleet Vehicle Lease
In January of 2017 the City entered into a vehicle lease agreement with Enterprise Fleet Management with the
goal of replacing all light duty vehicles within two years. Pool vehicles are also included in the replacement
program and are utilized by multiple departments. In fiscal year 2017-18, 11 vehicles were replaced with five-
year leases ranging from $26,926 to $42,233. This lease agreement qualifies as a capital lease for accounting
purposes and therefore, has been recorded at the present value of the future minimum lease payment at the
inception date. The minimum future lease obligations and the net present value of the lease payments as of June
30, 2018, are as follows:
Year Ending
June 30, Total
2019 107,450$
2020 121,728
2021 136,016
2022 196,405
2023 77,024
Outstanding Principal 638,623$
Note Payable – Eisenhower Drive Property
In March 2017, the City secured a note in the amount of $2,250,000 to fund the acquisition of property located on
Eisenhower Drive to be used as a drainage retention basin. The note accrues interest at 3.5% and will be paid in
two annual installments beginning in fiscal year 2017-18 of which the principal portion will be $1,125,000 each.
1996 Lease Revenue Refunding Bonds
On November 15, 1996, the Financing Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to
defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for
construction of remaining improvements to the La Quinta Civic Center site.
The bonds consist of $3,630,000 of serial bonds and $5,150,000 of term bonds. The serial bonds will accrue
interest at rates between 3.70 percent and 5.30 percent and principal amounts mature between October 1, 1997
and October 1, 2008, in amounts ranging from $285,000 to $380,000. The term bonds accrue interest at a rate of
5.55 percent and mature on October 1, 2018.
A surety agreement has been purchased to satisfy the bond reserve requirement. There are certain limitations
regarding the issuance of parity debt as further described in the official statement. The amount of principal
outstanding at June 30, 2018, is $650,000.
Year Ending
June 30, Principal Interest
2019 650,000$ 18,038$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
54
NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES
(CONTINUED)
Loans
Washington Street Apartments
In October 2008, the former redevelopment agency acquired the Washington Street Apartments for cash and the
assumption of the following debt:
Provident Bank Loan
This loan was originally entered into with the previous owner of the Washington Street Apartments and Provident
Bank for $1,696,000 in August 2001 at an 8.36 percent interest rate. In March 2018, the Washington Street
Apartments were transferred to the Coachella Valley Housing Coalition and the remaining balance of the loan was
paid off as part of the transfer of property.
United States Department of Agriculture (USDA) Rural Development Promissory Note
This promissory note was originally entered into with the previous owner of the Washington Street Apartments
and USDA – Rural Development for $1,500,000 in November 1980 at a 10.00 percent interest rate. In March
2018, the Washington Street Apartments were transferred to the Coachella Valley Housing Coalition who
assumed the remaining balance of the loan.
NOTE 6: INTERFUND RECEIVABLES AND PAYABLES
The composition of current interfund receivable and payable balances is as follows:
Internal Service Non-Major
Due from Other Funds Funds Governmental Total
General Fund 358,057$ 6,057$ 364,114$
Due to Other Funds
Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2018.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
55
NOTE 6: INTERFUND RECEIVABLES AND PAYABLES (CONTINUED)
The composition of non-current interfund receivable and payable balances as of June 30, 2018, is as follows:
Civic Center Non-Major
Advances to Other Funds Fund Golf Course Governmental Total
General Fund 7,103,053$ 5,468,718$ 2,382,315$ 14,954,086$
Advances from Other Funds
a) In September 2006, an advance up to $9,615,094 for the City Hall expansion from the General Fund to
the Civic Center Developer Impact Fee Fund was approved. The Civic Center expansion has been
completed and the amount of the advance outstanding as of June 30, 2018 was $7,103,053. The advance
accrues interest based on the rate earned by the City investment pool average.
b) As of June 30, 2018, the General Fund has advanced to the Golf Course fund $5,468,718. The advance
accrues interest at the City’s investment pool rate and is to be repaid by the golf course out of future
profits.
c) In October 2009, an advance up to $2,033,687 for the Phase 1 of the Corporate Yard project from the
General Fund to the Street and Park Maintenance Facility Funds was approved. As of June 30, 2018, the
amount of the outstanding advance was $1,891,472. The advance accrues interest at the earnings rate of
the City’s investment pool.
d) In February 2003, the Redevelopment Agency Capital Projects PA No. 2 Fund advanced $1,350,131 to
the Fire Facility Fund to provide funding for development of the City’s north fire station. On March 1,
2012 the outstanding advance of $925,192 was transferred from the former redevelopment agency to the
General Fund with the former redevelopment agency receiving $925,192 in cash for the outstanding
balance. The advance accrues interest at the earnings rate of the City’s investment pool funds. As of
June 30, 2018, the remaining balance of the advance was $490,843.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
56
NOTE 7: INTERFUND TRANSFERS
Non-Major Internal
Transfers In:General Fund Governmental Service Fund Total
General Fund -$ 38,048$ -$ 38,048$
Capital Improvements Fund 4,304,973 1,905,924 91,233 6,302,130
Non-major Governmental Funds 1,085,594 6,568 - 1,092,162
Golf Course Fund 434,000 - - 434,000
Total 5,824,567$ 1,950,540$ 91,233$ 7,866,340$
Transfer Out
a) $38,048 was transferred to the General Fund from the Indian Gaming Grant Fund to reimburse the
General Fund for expenditures within the City related to grant funding purposes.
b) $4,304,973 was transferred from the General Fund to the Capital Improvement Fund to fund various
capital projects.
c) $1,905,924 was transferred to Capital Improvement Fund from various non-major funds whereby
available external grant funding was received and appropriated first for various projects.
d) $1,085,594 was transferred from the General Fund to various non-major funds to support various
administrative operations and expenses within the City.
e) $6,568 was transferred between non-major funds to repay the DIF loan liability.
f) $434,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations.
g) $91,233 was transferred to the Capital Improvement Fund from the internal service funds to support
various capital projects and preventative maintenance.
NOTE 8: DEFINED BENEFIT PENSION PLAN
Miscellaneous Plan
Plan Description
All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost-
sharing multiple-employer defined benefit pension plans administered by the California Public Employees’
Retirement System (CalPERS). Benefit provisions under these plans are established by State statute and City
resolution. CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provision, assumption and membership information. Copies of the report can be found on the
CalPERS website.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
57
NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited
service, equal to one year of full time employment. Members with five years of total service are eligible to retire
at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years
of service. The death benefit is one of the following: The Basic Death Benefit, the 1959 Survivor Benefit, or the
Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by
the Public Employees’ Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2018 are
summarized as follows:
Tier I Tier II PEPRA
On and after On and after On and after
Hire date December 16, 1983 December 17, 2012 January 1, 2013
Benefit formula 2.5% @55 2% @60 2% @62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 and up 50 and up 52 and up
Monthly benefits, as a % of eligible
compensation 2% to 2.5% 2% to 2.5% 1% to 2%
Required employee contribution rates 8.00%7.00%6.25%
Required employer contribution rates 10.110%7.200%6.533%
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective
on the July 1 following notice of a change in the rate. Funding contributions are determined annually on an
actuarial basis as of June 30th by CalPERS. The actuarially determined rate is the estimated amount necessary to
finance the costs of benefits earned by employees during the year, and any unfunded accrued liability. The
employer is required to contribute the difference between the actuarially determined rate and the contribution rate
of employees. Employer contributions to the pension plan were $1,061,439 for the year ended June 30, 2018.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
As of June 30, 2018, the City reported a liability of $12,612,523 for its proportionate share of the collective net
pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016, and rolled
forward to June 30, 2017. The City’s proportion of the collective net pension liability was based on a projection
of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all
participating employers, actuarially determined. The City’s proportion of the collective net pension liability as of
June 30, 2016 and 2017 is as follows:
Proportion- June 30, 2016 0.12567 %
Proportion- June 30, 2017 0.12718 %
Change- Increase (Decrease)0.00151 %
For the year ended June 30, 2018, the City recognized pension expense of $2,293,242.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
58
NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED)
At June 30, 2018, the City reported deferred outflows and deferred inflows of resources related to pensions as
follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,061,439$ -$
Changes in assumptions 1,771,618 -
Differences between expected and actual experience - 205,994
Net difference between projected and actual earnings on
pension plan investments 433,740 -
Change in employer's proportion 400,215 -
Difference between the city's contribution and
proportionate share of contributions - 399,952
Total 3,667,012$ 605,946$
The $1,061,439 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018.
Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
Year Ended
June 30,
2019 572,374$
2020 1,051,723
2021 633,049
2022 (257,520)
1,999,626$
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2017 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2016 total pension liability. The total pension liability in the June 30,
2016 actuarial valuation was determined using the following actuarial methods and assumptions:
Miscellaneous
June 30, 2016
June 30, 2017
Discount Rate 7.15%
Inflation 2.75%
Projected Salary Increase Varies by Entry Age and Service
Mortality Derived using CalPERS' Membership Data for all Fund
Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power
Protection allowance Floor on Purchasing Power applies,
2.75% thereafter
Entry-Age Normal Cost Method
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
59
NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Change of Assumptions:
The discount rate of 7.15 percent used for the June 30, 2017 measurement date was decreased from 7.65 percent
used for the June 30, 2016 measurement date.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used
to determine the discount rate assumed that employee contributions will be made at the current contribution rate
and that the City’s contributions will be made at rates equal to the difference between actuarially determined
contributions rates and the employee rate. Based on those assumptions, each pension plan’s fiduciary net position
was projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
In determining the long-term expected percent rate of return on pension plan investments, CalPERS took into
account both short and long-term market return expectations as well as the expected pension fund cash flows.
Based on the expected benefit payments of the Public Employees’ Retirement Fund, CalPERS indicated that a 19
year horizon was ideal in determining the level equivalent discount rate assumption. Using historical returns of
all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10
years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for
both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of
return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one
quarter of one percent. The target allocation and best estimates of arithmetic real rates of return for each major
asset class are the same for the Plan. These geometric rates of return are summarized in the following table:
Asset Class
New Strategic
Allocation
Real Return
Years 1 - 10
Real Return
Years 11+
Global Equity 47% 4.90% 5.38%
Global Fixed Income 19% 0.80 2.27
Inflation Sensitive 6% 0.60 1.39
Private Equity 12% 6.60 6.63
Real Estate 11% 2.80 5.21
Infrastructure and Forestland 3% 3.90 5.36
Liquidity 2% (0.40) (0.90)
Total 100%
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
60
NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net position liability for each Plan, calculated using
the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be
if it were calculated using a discount rate that is 1 percent point lower or 1 percent higher than the current rate:
Discount Rate - 1% Current Discount Rate Discount Rate +1%
(6.15%)(7.15%)(8.15%)
Net Pension Liability 18,934,328$ 12,612,523$ 7,376,691$
Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS
financial reports.
NOTE 9: DEFINED CONTRIBUTION PLANS
Plan Description
The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide
retirement excess benefits to general employees of the City. At June 30, 2018, there was one plan member.
There are no required contributions by plan members. During the 2017-2018 fiscal year the City made no
contributions to fund the Supplemental Pension Savings Plan.
NOTE 10: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB)
Plan Description
The City’s Retiree Health Plan is a single-employer defined benefit healthcare plan. The City contributes on
behalf of all eligible retirees’ $128/month for the calendar year 2017 and $133/month for calendar 2018, increased
in all future years according to the rate of medical inflation. These benefits are provided per contract between the
City and the employee associations. A separate financial report is not available for the plan.
In fiscal year 2018, the City joined a trust with CalPERS California Employers’ Retiree Benefit Trust (CERBT)
for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent
multiple employer plan for those electing to prefund OPEB obligations. No assets are accumulated in a trust that
meets the criteria of the paragraph 4 of GASB 75 as of the measurement date.
Benefits Provided
Retirees are eligible for medical benefits if they retire at age 50+, have 5+ years of service within CalPERS, and
were enrolled in the CalPERS health system at retirement. The City provides PEMHCA minimum for each
subscriber, regardless of elected coverage tier.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
61
NOTE 10: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED)
Employees Covered by Benefit Terms
At June 30, 2017, the most recent valuation date, the following current and former employees were covered by the
benefit terms of the plan:
Active employees 80
Inactive employees or beneficiaries currently receiving benefits 21
Total 101
Contributions
The City makes contributions to the plan based on an actuarially determined rate. Employees are not required to
contribute to the plan. For the year ended June 30, 2018, the City contributions were $1,523,400 in payments to
the CERBT trust. This amount is shown as a Deferred Outflow at June 30, 2018, since these payments were made
subsequent to the measurement period ending June 30, 2017.
Total OPEB Liability
Actuarial Assumptions – The total OPEB liability in the June 30, 2017 actuarial valuation was determined using
the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.00%
Inflation 2.75%
Payroll Growth Base salary increase in year one: 2.875%. Base salary increases in subsequent
years: 2.875%. Additional merit-based increases based on CalPERS.
Investment Rate of Return 7.00%
Mortality (1)
Healthcare Trend Rate 7.00% in the first year, trending down to 3.84% over 58 years.
(1) Derived using CalPERS Membership Data for all Funds
Mortality rates were based on the CalPERS 1997-2011 Experience Study, which assumed future mortality
improvements using Society of Actuaries (SOA) Scale BB. The Experience Study report can be obtained on the
CalPERS website under Forms and Publications.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience
study for the period.
Discount Rate – The discount rate used to measure the total OPEB liability was 7.00 percent for the Plan. The
projection of cash flows used to determine the discount rate assumed that the City contribution will be made at
rates equal to the actuarially determined contribution rates.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
62
NOTE 10: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED)
Changes in Total OPEB Liability:
The changes in the OPEB liability for the Plan as of the measurement date June 30, 2017 are as follows:
Total OPEB
Liability
Balance at June 30, 2017 1,288,598$
Changes in the year:
Service cost 90,827
Interest on the total OPEB liability 93,346
Benefit payments (91,822)
Net changes 92,351
Balance at June 30, 2018 1,380,949$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate– The following presents the total OPEB
liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount
rate that is 1-percentage-point lower (6.00 percent) or 1-percentage-point higher (8.00 percent) than the current
discount rate:
1% Decrease Discount Rate 1% Increase
(6.00%) (7.00%) (8.00%)
Total OPEB Liability 1,638,202$ 1,380,949$ 1,344,736$
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following presents
the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated
using healthcare cost trend rates that are 1-percentage-point lower (6.00 percent decreasing to 2.84 percent) or 1-
percentage-point higher (8.00 percent decreasing to 4.84 percent) than the current healthcare cost trend rates:
1% Decrease Discount Rate 1% Increase
(6.00%
Decreasing to
2.84%)
(7.00%
Decreasing to
3.84%)
(8.00%
Decreasing to
4.84%)
Total OPEB Liability 1,302,558$ 1,380,949$ 1,694,434$
OPEB Expense and Deferred Outflows of Resources Related to OPEB:
For the year ended June 30, 2018, the City recognized OPEB expense of $184,173. At June 30, 2018, the City
reported deferred outflows of resources in the amount of $1,523,400. The deferred outflow of resources related to
OPEB represents contributions subsequent to the measurement date which will be recognized as a reduction to the
total OPEB liability during the fiscal year ending June 30, 2019.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
63
NOTE 11: RISK MANAGEMENT
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of La Quinta is a member of the California Joint Powers Insurance Authority (CJPIA). The CJPIA is
composed of 116 California public entities and is organized under a joint powers agreement pursuant to California
Government Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling
of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance
for property and other lines of coverage. The CJPIA began covering claims of its members in 1978. Each
member government has an elected official as its representative on the Board of Directors. The Board operates
through a nine-member Executive Committee.
Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is
then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward
are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance
programs is based on actuarial analysis. Costs are allocated to individual agencies based on payroll and claims
history, relative to other members of the risk-sharing pool.
Primary Liability Program
In the liability program claims are pooled separately between police and general government exposures. (1) The
payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is
evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the
pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are
distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.
Costs of covered claims for subsidence losses have a sub-limit of $40 million per occurrence.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety (police and fire) and
general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up
to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first
layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and
is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from
$100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss
layers.
For 2017-18, the CJPIA’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under
California Workers’ Compensation Law.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
64
NOTE 11: RISK MANAGEMENT (CONTINUED)
Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is
purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are
pooled among members.
Purchased Insurance
Property Insurance - The City of La Quinta participates in the all-risk property protection program of the CJPIA.
This insurance protection is underwritten by several insurance companies. City of La Quinta property is currently
insured according to a schedule of covered property submitted by the City of La Quinta to the CJPIA. City of La
Quinta property currently has all-risk property insurance protection in the amount of $88,336,949. There is a
$10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Earthquake Insurance - The City of La Quinta purchases earthquake insurance brokered through a third party.
The City of La Quinta property currently has earthquake protection up to $10,000,000 per occurrence. There is a
deductible of $25,000 per occurrence. Premiums for the coverage are paid annually in the amount of $98,700 and
are not subject to retrospective adjustments.
Crime Insurance - The City purchases crime insurance coverage brokered through a third party. The City pays an
annual premium of $3,366, which covers thefts up to $1,000,000, with a deductible of $50,000 per occurrence.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments
that exceeded pooled or insured coverage.
NOTE 12: FUND BALANCE
a. Fund Balance Commitments
In the FY 2017-2018, the City conducted an extensive reserve analysis and adopted a new Reserve Policy
in May 2018. The policy defines the City’s fund balance and reserve categories, identifies the need for
reserves, and outlines the importance of maintaining the integrity of uses and funding amounts.
Committed reserves include:
Natural Disaster Emergency Reserves: These funds may be used for the preparation, recovery, and
restoration of services before, during and/or after a natural disaster (such as flood, earthquake, etc.) as
defined by City Code 2.20.020.
The target is $10,000,000 and will be reviewed every five years by conducting a risk analysis of all City
assets, insurance levels, and potential federal/state contributions towards disaster recovery efforts. For the
year ended June 30, 2018, the City has committed $7,400,000 for this purpose.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
65
NOTE 12: FUND BALANCE (CONTINUED)
a. Fund Balance Commitments (Continued)
Economic Downturn Reserves: These funds may be used in such instances as a declared national, state, or
regional recession; loss of a major (top 10) revenue-generating business; or a natural disaster resulting in
a significant decline in revenues. These reserves may also be used if overall revenues decrease or
expenditures increase more than 10% of the previous year’s actual revenues or expenditures.
The target is $11,000,000, based on a 10-year analysis of the revenues and expenditure flows (which
included the financial impacts of the Great Recession). The target will be evaluated again in the event of
another significant economic downturn. For the year ended June 30, 2018, the City has committed
$8,140,000.
Cash Flow Reserves: These funds are maintained to have adequate cash on hand to account for the
uneven receipt of revenue. For example, property tax accounts for a large percentage of annual revenue,
the bulk of which is not remitted until December and May of each year.
The target is $5,000,000 and will be determined annually by analyzing the prior fiscal year by month and
calculating the largest cumulative deficit between revenues and expenditures, with a minimum
expectation of approximately 10% of operating expenditures reserved. The cash flow reserve is fully
funded as of June 30, 2018.
Capital Improvement Reserves: These funds may be used for capital assets and infrastructure
rehabilitation, improvement, and replacement.
The target is $10,000,000 and is based on annual depreciation of assets. For the year ended June 30, 2018,
the City has committed $5,000,000.
Unfunded Pension Liability: These funds may be used to fund future pension obligations such as annual
pension fund payments, unfunded pension liability payments, and/or any additional contributions to pay
down the unfunded liability.
The target is $10,000,000 and will be reviewed annually as CalPERS updates the actuarial reports, which
outline the City’s unfunded pension liability and annual contributions. For the year ended June 30, 2018,
the City has committed $2,000,000 to the unfunded pension liability reserve.
Committed to Fiscal Year 2018-2019 carryovers totaled $2,186,500 at June 30, 2018.
b. Assigned Fund Balance
The City has the following assigned fund balance shown on the balance sheet:
Assigned to public safety represents property tax accumulated and withheld by the County of Riverside to
be used for fire protection, disaster preparedness, fire prevention, rescue, hazardous materials mitigation,
technical rescue response, medical emergency services, and public service assists. The assigned fund
balance related to this item as of June 30, 2018 is $9,754,327.
Assigned to capital projects is comprised of carryover balances for capital projects and accumulated
resources related to the City’s sales tax Measure G with a combined total of $10,166,785. Capital project
carryover balances as of June 30, 2018 are $4,996,815.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
66
NOTE 12: FUND BALANCE (CONTINUED)
c.At June 30, 2018, the following funds had deficit fund balances:
Major Capital Projects Funds:
Capital Improvement 347,562$
Civic Center 7,103,053
Nonmajor Special Revenue Funds:
Justice Assistance Grant 268
Nonmajor Capital Projects Funds:
Library Development 1,572,557
Street Facility 1,891,594
Fire Facility 490,843
NOTE 13: GOLF COURSE MANAGEMENT AGREEMENT
The City entered into an agreement with Landmark Golf Management LLC (operator) to manage the golf
operations at the city-owned SilverRock Golf Course. The Agreement entered into on April 6, 2004, sets forth a
five-year term commencing upon the completion of the golf course. On January 14, 2005, the golf course was
deemed to be complete and management was turned over to the operator. The contract has been amended and
extended numerous times with the current contract expiring June 30, 2019. The contract provides that the
operator will manage the day to day operations, hire employees, provide golf pro shop and food services, manage
all marketing and promotional activities, prepare the annual budget report for Council consideration, and manage
accounting and payroll functions. In addition to the annual payment for management services, the City has
advanced the operator $250,000 to pay for golf course expenses. Twice a month the operator submits a request
for reimbursement to the City to replenish the City’s advance. In addition, the agreement sets forth the
establishment of a capital reserve fund of 2 percent of green fees. For the fiscal year ending June 30, 2018, the
Golf Course had a loss before transfers of $747,234.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
67
NOTE 14: CONSTRUCTION COMMITMENTS
Various construction projects were in progress at June 30, 2018. Projects costs are paid out of the capital
improvements fund. The following material construction commitments, for which funds have been encumbered,
existed at June 30, 2018, with an estimated cost to complete.
Expenditures
Project Contract to date as of Remaining
Project Name Number Amount June 30, 2018 Commitments
Madison Street Ave. 50 to Ave. 52 091002 2,914,993$ 778,492$ 2,136,501$
Dune Palms Road Street Improvements 091004 2,483,000 771,643 1,711,357
Dune Palms Bridge Improvement 111205 17,510,603 1,227,093 16,283,510
SilverRock Infrastructure Improvements 141517 5,733,021 389,969 5,343,052
Miles Avenue Median Island Landscaping 151602 1,122,738 1,003,089 119,649
LQ Village Complete Streets- Road Diet Proj 151603 2,386,442 737,245 1,649,197
La Quinta X Park 151609 3,501,639 53,203 3,448,436
Citywide Drainage Enhancements 151612 8,384,279 3,858,950 4,525,329
HSIP Intersection Improvements 201601 1,260,400 57,045 1,203,355
HSIP Traffic Signal Interconnect Network 201602 2,001,000 106,689 1,894,311
La Quinta Landscape Renovation Improvement 201603 4,682,189 937,332 3,744,857
Fritz Burns Park- Tennis and Pickleball Court 201604 607,250 431,280 175,970
Civic Center Campus Lake/ Irrigation Conver 201606 675,270 132,961 542,309
SilverRock Event Space 201608 3,650,000 54,309 3,595,691
Washington Street at Fred Waring Dr.201701 551,985 10,140 541,845
Eisenhower Retention Basin Landscape 201704 750,000 1,160 748,840
La Quinta High School ADA 201705 259,000 20,617 238,383
Jefferson Street Sidewalk Gap Closure 201706 180,000 27,585 152,415
Ave 53 Jefferson St. Roundabout 201709 2,027,328 44,721 1,982,607
Cove Public Restroom 201801 429,000 - 429,000
Highway 111 Sidewalk Improvements 201803 500,000 - 500,000
Washington St Apts Rehabilitation & Testa Property 999901 27,996,401 812,507 27,183,894
NOTE 15: REIMBURSEMENT AGREEMENTS
On September 9, 2014, the City entered into a sales tax sharing agreement with One Eleven La Quinta LLC
(“Hobby Lobby”). Under the terms of the agreement the City shall make quarterly payments of 50 percent of any
sales tax generated from Hobby Lobby in an amount not to exceed $400,000 over an eight year period. Due to the
reporting of sales tax information by the State Board of Equalization to the City, the reimbursement payments by
the City will lag by one quarter. The agreement terminates when either the $400,000 limit is reached or in eight
years whichever comes first. The Hobby Lobby business opened in December 2014. As of June 30, 2018, the
City made $50,020 in reimbursement payments to the owner leaving an outstanding balance of $305,863.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
68
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for
the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity
of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the
City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local
government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units
of state and local government. On January 3, 2011, the City Council elected to become the Successor Agency for
the Former Redevelopment Agency (‘Former Agency”) in accordance with the Bill as part of City resolution
number 2012-002.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California
cannot enter into new projects, obligations or commitments. Subject to the control of a newly established
oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of
dissolution (including the completion of any unfinished projects that were subject to legally enforceable
contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the
estimated annual installment payments on enforceable obligations of the Former Agency until all enforceable
obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December
29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal
entity as of February 1, 2012.
The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose trust fund).
a. Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City 43,949,992$
Cash and investments with fiscal agent 2,435
43,952,427$
b. Loans Receivable
Owner Participation Agreement – Garff Properties, LLC
In July 2010, the Former Agency entered into an Owner Participation Agreement (OPA) with Garff
Properties-La Quinta, LLC (“Garff”) that provides for the Former Agency to provide a rehabilitation loan
to Garff of up to $2,300,000 for the construction of a new auto dealership facility and rehabilitation of an
existing dealership facility. In connection with the OPA, Garff has executed a promissory note which is
secured by a deed of trust, and an operating covenant. The loan will be repaid by crediting future sales
and property tax increment taxes generated on the site until the cumulative taxes collected equals the loan
amount. At that time, the note will be cancelled and the operating covenant will terminate.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
69
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
b.Loans Receivable (Continued)
If, after ten years of operation, a shortfall exists between the revenues collected and the outstanding loan
amount, the note will be cancelled and the operating covenant will terminate. Further, if at any time
through no fault of the dealership certain future events outside of the dealership control occur the note
will be cancelled and the operating covenant will terminate. The balance at June 30, 2018 is $616,621.
Owner Participation Agreement – Torre Nissan
In June 2011, the Former Agency entered into an Owner Participation Agreement (OPA) with an auto
dealer, Mega Dealer, LLC (“Torre Nissan”) that provides for the Former Agency to provide a
rehabilitation loan to Torre Nissan of up to $1,500,000 for the remodeling of the existing dealership and
an expansion of the dealership facility to accommodate a new line of electric and commercial vehicles.
The new expansion will also include service and parts sales facilities. In connection with the OPA, Torre
Nissan has executed a promissory note, which is secured by a subordinated deed of trust, and an operating
covenant. The loan will be repaid by crediting future sales and property tax increment taxes generated on
the site until the cumulative taxes collected equals the loan amount. If Nissan Motor Company ceases to
exist, the note will be cancelled and the operating covenant will terminate. At the end of the ten-year
operating covenant, the operating covenant will terminate and the note will be cancelled, and any
outstanding loan balance will be forgiven. The balance at June 30, 2018 is $1,104,905.
c.Due from other Governments
La Quinta Library
In April 2005, an advance of $2,490,273 was made from the former redevelopment agency to provide
funding for the construction of the public library. The loan accrues interest at the earnings rate of the
City’s investment pool fund. The remaining balance of this loan at June 30, 2018, is $1,572,557.
d.Deferred Outflows of Resources
As debt is refunded, the difference between the carrying value of the refunded debt and the reacquisition
price is recorded as a deferred outflow of resources and amortized over the shorter of the new or refunded
debt, whichever is shorter. Activity during the fiscal year is comprised of the following:
Balance at Balance
July 1, 2017 Additions Deductions June 30, 2018
Deferred charge on refunding 11,467,492$ -$583,839$ 10,883,653$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
70
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
e. Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2018, follows:
Balance at Balance Due within
July 1, 2017 Additions Repayments June 30, 2018 One year
Tax allocation bonds 202,445,000$ -$ 8,485,000$ 193,960,000$ 8,360,000$
City loans 36,442,580 3,624,079 3,052,025 37,014,634 3,113,066
Unamortized premiums/discounts 11,923,169 - 698,655 11,224,514 -
Total 250,810,749$ 3,624,079$ 12,235,680$ 242,199,148$ 11,473,066$
2013 Series A
On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the
amount of $97,190,000 to refinance outstanding long term obligations held by the Successor Agency.
The 2013 Series A tax allocation bonds were issued at a premium of $6,056,280 and issuance costs of
$480,001.
Interest rates on the bonds range from 3.00 percent to 5.00 percent and are payable semi-annually on
March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable
solely from property tax revenue.
A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2018, is $81,945,000 with an unamortized premium of $4,542,210. The
minimum annual requirements to amortize the bond payable as of June 30, 2018, are as follows:
Year Ending
June 30,Principal Interest Total
2019 3,790,000$ 3,953,713$ 7,743,713$
2020 3,985,000 3,759,338 7,744,338
2021 4,180,000 3,555,213 7,735,213
2022 4,390,000 3,340,963 7,730,963
2023 4,610,000 3,115,963 7,725,963
2024-2028 26,745,000 11,815,111 38,560,111
2029-2033 33,870,000 4,487,810 38,357,810
2034 375,000 8,906 383,906
81,945,000$ 34,037,017$ 115,982,017$
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
71
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
e. Long-Term Debt (Continued)
2013 Series B
On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the
amount of $23,055,000 to refinance outstanding long term obligations held by the Successor Agency.
The 2013 Series B tax allocation bonds were issued at a discount of $8,951 and issuance costs of
$122,274.
The bonds consist of $3,710,000 of term bonds that accrue interest at 5.240 percent and mature on
September 1, 2026, $4,335,000 of term bonds that accrue interest at 5.550 percent and mature on
September 1, 2029, and $5,115,000 of term bonds that accrue interest at 5.820 percent and mature on
September 1, 2032. The remaining $9,895,000 matures annually with rate ranging from 0.76 percent to
4.89 percent. The interest and principal on the bonds are payable from property tax revenue.
A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2018, is $19,230,000 with an unamortized discount of $6,711.
The minimum annual requirements to amortize the bond payable as of June 30, 2018, are as follows:
Year Ending
June 30, Principal Interest Total
2019 920,000$ 970,318$ 1,890,318$
2020 950,000 939,623 1,889,623
2021 985,000 903,488 1,888,488
2022 1,025,000 860,981 1,885,981
2023 1,070,000 812,817 1,882,817
2024-2028 6,200,000 3,173,356 9,373,356
2029-2033 8,080,000 1,220,203 9,300,203
19,230,000$ 8,880,786$ 28,110,786$
2014 Series A
On July 9, 2014, the Successor Agency issued tax allocation refunding bonds in the amount of
$65,600,000, with a premium of $8,545,482, to refinance outstanding 2004 Series A Revenue Bonds of
$72,865,000 with interest payments ranging between 3 percent to 5.25 percent. The net proceeds of
$73,402,709 (after payment of $592,017 in issuance costs) plus an additional $4,012,653 of 2004 Series
A sinking fund monies were used to purchase U.S. Government Securities. Those securities were
deposited in an irrevocable trust with an escrow agent; and issued to pay-off $77,415,362 of remaining
principal and accrued interest of 2004 Series A. As a result, the 2004 Series A bonds are considered to be
defeased and the liability for those bonds has been removed from the Successor Agency’s long-term debt.
The principal balance of outstanding bonds at June 30, 2018, is $59,400,000. The remaining unamortized
bond premium at June 30, 2018 was $6,917,771.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
72
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
e. Long-Term Debt (Continued)
The Successor Agency in effect reduced its aggregate debt service payments over the remaining maturity
period of the 2004 Series A by $11,814,531 and to obtain an economic gain (difference between the
present values of the debt service payments on the old and new debt) of $7,801,878.
The minimum annual requirements to amortize the 2014 Series A bonds payable as of June 30, 2018, are
as follows:
Year Ending
June 30,Principal Interest Total
2019 2,340,000$ 2,875,450$ 5,215,450$
2020 2,435,000 2,779,950 5,214,950
2021 2,530,000 2,668,000 5,198,000
2022 2,660,000 2,538,250 5,198,250
2023 2,795,000 2,401,875 5,196,875
2024-2028 16,190,000 9,714,750 25,904,750
2029-2033 20,665,000 5,130,125 25,795,125
2034-2035 9,785,000 495,375 10,280,375
59,400,000$ 28,603,775$ 88,003,775$
2016 Series A
On December 22, 2016, the La Quinta Redevelopment Project Areas No. 1 and 2 Subordinate Tax
Allocation Refunding Bonds 2016 Taxable Series A Bonds were issued for $35,055,000 by the Successor
Agency to the La Quinta Redevelopment Agency (the “Agency”) to refinance on an advance basis the La
Quinta Redevelopment Agency’s (the “Prior Agency”) previously issued $6,000,000 La Quinta
Redevelopment Project Area No. 2, Subordinate Taxable Tax Allocation Bonds, Series 2011 (the “2011
Project Area No. 2 Taxable Bonds”) of which $5,810,000 was outstanding and the Prior Agency’s loan
obligation under the Loan Agreement, dated February 3, 2004 as supplemented by the Second
Supplemental Loan Agreement, dated as of March 1, 2011 (the “2011 Loan Obligation”) in connection
with the La Quinta Financing Authority’s previously issued $28,850,000 Local Agency Subordinate
Taxable Revenue Bonds, 2011 Series A (the “2011 Taxable Housing Bonds”) of which $26,635,000 was
outstanding.
The Bonds were issued on a subordinate basis to the $65,600,000 Successor Agency to the La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding
Bonds, 2014 Series. The Bonds are payable from and secured by the Pledged Tax Revenues, as defined
herein, to be derived from the La Quinta Redevelopment Project Area No. 1 and La Quinta
Redevelopment Project Area No. 2.
The principal of and interest on the Bonds are payable solely from the pledged tax revenues allocated to
the Successor Agency from the project areas. The principal balance of outstanding bonds at June 30,
2018, is $33,385,000 with an unamortized discount of $228,726.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
73
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
e. Long-Term Debt (Continued)
The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency,
in whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026
or on any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to
be redeemed, without premium, plus accrued interest to the redemption date.
Year Ending
June 30, Principal Interest Total
2019 1,310,000$ 1,208,580$ 2,518,580$
2020 1,330,000 1,183,526 2,513,526
2021 1,365,000 1,153,763 2,518,763
2022 1,395,000 1,118,840 2,513,840
2023 1,430,000 1,079,255 2,509,255
2024-2028 7,835,000 4,668,385 12,503,385
2029-2033 9,375,000 3,072,634 12,447,634
2034-2038 8,655,000 897,966 9,552,966
2039-2040 690,000 18,334 708,334
33,385,000$ 14,401,283$ 47,786,283$
Loans from the City of La Quinta
The City of La Quinta loaned money to the Former Agency to cover operating and capital shortfalls. In a
letter dated November 6, 2013, the California Department of Finance approved the loans as enforceable
obligations to be paid through Successor Agency property tax. This loan approved split between the
City’s General and the Housing Authority Funds. As of June 30, 2018, principal and interest due to the
City of La Quinta was $37,014,634.
On November 22, 2017, the Department of Finance (DOF) approved the last and final Recognized
Obligation Payment Schedules (ROPS). The ROPS is a comprehensive schedule which includes all bond
debt service payments, City loan repayments, administration, and annual reporting requirements from
fiscal years 2018-2019 to 2039-2040.
f. Pledged Tax Revenues
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a
portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass
through allocations) that it receives. The bonds issued were to provide financing for various capital
projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds.
Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes
allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues
and will be allocated first to successor agencies to make payments on the indebtedness incurred by the
dissolved redevelopment agency. Total principal and interest remaining on the debt is $279,882,861 with
annual debt service requirements as indicated above. For the current year, the total property tax revenue
recognized by the Successor Agency for the payment of indebtedness incurred was $20,600,454 and the
debt service obligation on the bonds was $17,790,596.
CITY OF LA QUINTA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
74
NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY (CONTINUED)
g. Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of the City of La
Quinta at June 30, 2018.
NOTE 17: EXTRAORDINARY ITEM
Annual loan repayments are first applied to principal then interest and when received are allocated 80% General
Fund and 20% Housing Authority Fund. The total principal repayment for the fiscal year ended June 30, 2018
was $3,624,121 and is reflected as extraordinary revenue. No interest was paid during the fiscal year. The
Department of Finance approval of the last and final ROPS increased the quarterly interest rate (from 3% to 4%,
since the inception of the loan in November 2006). The interest due as of June 30, 2018 was $11,148,313.
NOTE 18: PRIOR PERIOD ADJUSTMENT
As discussed under Note 1, the City implemented GASB 75 effective July 1, 2017. Refer to Note 10 for further
disclosures related to the plan and related balances. As a result of the implementation; the City restated beginning
net position for the fiscal year 2018 as noted below:
Governmental
Activities
Beginning of the year, as previously reported
Net Position 673,989,472$
Remove previously reported Net OPEB Obligation 876,592
Deferred outflows of resources related to pension 91,822
Total OPEB Liability as of the measurement date of June 30, 2017 (1,288,598)
Beginning of the year, as restated
Net Position 673,669,288$
Following is a pro forma effect of the retroactive application:
June 30, 2017
Previously June 30, 2017
Presented Restatement Restated
Total OPEB Liability 876,592$ 412,006$ 1,288,598$
Deferred outflows of resources - 91,822 91,822
CITY OF LA QUINTA, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2018
See accompanying note to the required supplementary information.
75
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 107,462,473$ 107,462,473$ 107,462,473$ -$
Resources (Inflows):
Taxes 37,364,100 41,264,100 44,116,002 2,851,902
Licenses and permits 1,257,700 1,347,700 1,394,820 47,120
Intergovernmental 7,215,000 7,265,000 7,467,753 202,753
Charges for services 1,258,200 1,312,100 1,279,864 (32,236)
Use of money and property 530,000 400,000 643,171 243,171
Fines and forfeitures 246,000 266,000 375,390 109,390
Miscellaneous 490,200 508,200 1,033,808 525,608
Extraordinary Item - - 2,899,296 2,899,296
Transfer In 190,400 - 38,048 38,048
Amounts Available for Appropriations 156,014,073 159,825,573 166,710,625 6,885,052
Charges to Appropriation (Outflows):
General government
Legislative 324,000 324,000 259,964 64,036
City manager 769,000 807,460 783,671 23,789
City attorney 460,000 460,000 420,511 39,489
Marketing 1,170,400 1,173,350 1,074,172 99,178
Human resources 462,900 516,590 474,561 42,029
City clerk 552,200 583,340 527,550 55,790
Fiscal services 1,123,200 1,159,860 1,033,895 125,965
Central services 1,266,300 2,549,380 2,393,228 156,152
The Hub Customer Services 786,300 809,160 766,425 42,735
Public safety
Police 15,879,100 15,879,100 15,083,365 795,735
Public buildings 1,578,354 1,613,650 1,639,767 (26,117)
Code compliance 1,134,500 1,143,080 1,018,033 125,047
Building & safety 917,200 925,650 686,220 239,430
Fire 6,715,000 6,715,000 6,531,244 183,756
Planning and development
Current planning 524,700 554,760 482,189 72,571
Parks and recreation
Community services admin 703,500 728,650 631,998 96,652
Wellness center 679,300 661,420 581,478 79,942
Recreation Programs/Special Events 365,000 366,640 310,586 56,054
Park maintenance 1,582,300 1,635,700 1,732,772 (97,072)
Public works
Administration 1,205,500 1,206,870 786,361 420,509
Development services 595,200 628,330 493,811 134,519
Maintenance/operations - street 8,600 8,600 10,459 (1,859)
Engineering services 1,299,400 1,410,620 1,340,230 70,390
Capital outlay 37,746 2,015,000 - 2,015,000
Transfers out 8,041,000 13,242,453 5,824,567 7,417,886
Total Charges to Appropriations 48,180,700 57,118,663 44,887,058 12,231,605
Budgetary Fund Balance, June 30 107,833,373$ 102,706,910$ 121,823,567$ 19,116,657$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2018
See accompanying note to the required supplementary information.
76
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 21,730,310$ 21,730,310$ 21,730,310$ -$
Resources (InFlows):
Intergovernmental - - 304,474 304,474
Use of money and property 20,000 20,000 959,554 939,554
Extraordinary item - - 724,825 724,825
Other income 899,000 992,800 98,109 (894,691)
Amounts Available for Appropriations 22,649,310 22,743,110 23,817,272 1,074,162
Charges to Appropriation (OutFlows):
Planning and development
Homeless Housing -259,000 259,000 -
Administration 158,400 234,220 173,084 61,136
Low/Mod Housing 838,600 776,100 1,553,565 (777,465)
Debt service
Principal retirement 66,500 66,500 51,989 14,511
Interest and fiscal charges 126,100 126,100 89,447 36,653
Total Charges to Appropriations 1,189,600 1,461,920 2,127,085 (665,165)
Budgetary Fund Balance, June 30 21,459,710$ 21,281,190$ 21,690,187$ 408,997$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
MISCELLANEOUS PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS *
77
2015 2016 2017 2018
Proportion of the Net Pension Liability 0.10339% 0.12604% 0.12567% 0.12718%
Proportionate Share of the Net Pension Liability 6,433,391$ 8,651,290$ 10,874,098$ 12,612,523$
Covered Payroll 5,421,945$ 5,480,758$ 5,569,002$ 5,739,416$
Proportionate Share of the net pension liability as a
Percentage of Covered Payroll 118.65%157.85%195.26%219.75%
Plan Fiduciary Net Position as a Percentage of the 79.82%78.40%74.06%73.31%
Total Pension Liability
* - Fiscal year 2015 was the first year of implementation, therefore, only three years are shown.
Changes in Assumptions
The discount rate changed from 7.65 percent used for the June 30, 2016 measurement date to 7.15 percent used for the
June 30, 2017 measurement date.
Covered Payroll
In accordance with GASB Statement No. 82, Pension Issues - An Amendment of GASB Statement No. 67, No. 68, and No. 73,
we have restated to show covered payroll based on pensionable earnings.
CITY OF LA QUINTA, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
MISCELLANEOUS PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS *
78
2015 2016 2017 2018
Actuarially Determined Contributions - Miscellaneous 728,073$ 797,603$ 949,231$ 1,061,439$
Contributions in Relation to the Actuarially Determined Contribution (728,073) (797,603) (949,231) (1,061,439)
Contribution Deficiency (Excess)-$ -$ -$ -$
Covered Payroll 5,480,758$ 5,569,002$ 5,739,416$ 6,064,875$
Contributions as a Percentage of Covered Payroll 13.28% 14.32% 16.54% 17.50%
* - Fiscal year 2015 was the first year of implementation, therefore, only four years are shown.
Covered Payroll
In accordance with GASB Statement No. 82, Pension Issues- An Amendment of GASB Statement No. 67, No. 68,
and No. 73 , we have restated to show covered payroll based on pensionable earnings.
CITY OF LA QUINTA, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30, 2018, FOR THE LAST TEN FISCAL YEARS*
79
2018
Total OPEB Liability
Service cost 90,827
Interest on the total OPEB liability 93,346
Benefit payments (91,822)
Net change in total OPEB liability 92,351
Total OPEB liability- beginning 1,288,598
Total OPEB liability- ending 1,380,949$
Covered-employee payroll 5,603,428
Total OPEB liability as a percentage of covered-employee payroll 25%
Notes to Schedule:
Funding Policy: The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust.
* Fiscal year 2018 was the first year of implementation
CITY OF LA QUINTA, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
80
NOTE 1: BUDGETS AND BUDGETARY ACCOUNTING
a.Budget Procedures
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of accounting for its
governmental funds and on the accrual basis of accounting for its proprietary funds. The City manager or
his designee is authorized to transfer budgeted amounts between the accounts of any department or funds
that are approved by City Council. Prior year appropriations lapse unless they are approved for carryover
into the following fiscal year. Expenditures may not legally exceed appropriations at the department level.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting
principles (GAAP). The Transportation Uniform Mitigation Fee and Indian Gaming Funds did not adopt
a budget.
81
OTHER GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital
projects) and the related expenditures that are legally required to be accounted for in a separate fund. The City of
La Quinta has the following Special Revenue Funds:
State Gas Tax Fund – To account for gasoline allocations made by the State of California. These revenues are
restricted by the State to expenditures for street-related purposes only.
Library and Museum Fund – To account for revenues from property tax increment dedicated library and museum
services.
Federal Assistance Fund – To account for revenues from the Community Development Block Grants received
from the Federal Government and the expenditures of those resources.
State Law Enforcement Services Account (SLESA) Fund – To account for state funded “Citizens for Public
Safety” (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such
as anti-gang community crime prevention.
Indian Gaming Fund – To account for contributions for public safety activities to reduce crime and increase
public safety.
Lighting and Landscape Special Assessment District 89-1 Fund – To account for special assessments levied on
real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements.
Quimby Fund – To account for the accumulation of developer fees received under the provisions of the Quimby
Act for park development and improvements. Capital projects to be funded from this source will be budgeted and
expended in a separate capital projects fund.
La Quinta Public Safety Officer Fund – To account for contributions to be distributed to public safety officers
disabled or killed in the line of duty.
Art in Public Places – To account for development fees paid in lieu of acquisition and installation of approved
artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of
artworks at approved sites.
South Coast Air Quality Fund – To account for contributions from the South Coast Air Quality Management
District. Use is limited to reduction and control of airborne pollutants.
AB 939 Fund – To account for the State mandated program to reduce waste sent to the landfills through recycling
efforts.
Development Agreement Fund – To account for the proceeds of development agreement revenues collected and
the related expenditures in accordance with State requirements.
Law Enforcement Fund – To account for law enforcement grants and restricted revenue for public safety.
Justice Assistance Grant Fund – To account for Federal Bureau of Justice Block Grant program grant funds,
which are used to reduce crime and improve public safety.
82
SPECIAL REVENUE FUNDS (CONTINUED)
Measure A Fund – To account for the revenues and expenditures related to Measure A monies.
Transportation Uniform Mitigation Fee Fund – To account for the revenues and expenditures related to
Transportation Uniform Mitigation Fee monies.
CAPITAL PROJECT FUNDS
Capital projects funds account for the financial resources to be used for the acquisition, construction or
improvements of major capital facilities and infrastructure.
Infrastructure Fund – To account for the accumulation of resources provided through developer fees for the
acquisition, construction or improvement of the City’s infrastructure, prior to adoption of the new Developer
Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this
date, and is budgeted by the Council through adoption of the annual capital improvement program budget.
Transportation Fund, Parks and Recreations Fund, Library Development Fund, Community Center Fund, Street
Facility Fund, Park Facility Fund, Fire Facility Fund – To account for the accumulation of resources provided
through developer fees for the acquisition, construction, or improvement of the City’s infrastructure. The
Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight new funds have been
established to account for the specific impact areas of these fees, and are budgeted by the Council through
adoption of the annual Capital Improvement Program budget.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental
long-term debt principal and interest.
La Quinta Financing Authority Fund – To account for rental activity for the Civic Center and rental income used
to pay the Financing Authority Civic Center and 2004 Local Agency Revenue Bond debt obligations.
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
83
Library and Federal
Gas Tax Museum Assistance SLESA
Assets:
Pooled cash and investments 353,656$ 4,928,675$ -$ 65,004$
Receivables:
Taxes - - - -
Accrued interest 1,083 12,878 - 109
Due from other governments 35,372 874,054 - 25,000
Total Assets 390,111$ 5,815,607$ -$ 90,113$
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable 12,657$ 29,844$ -$ 31,475$
Due to other governments - - - -
Due to other funds - - - -
Advances from other funds - - - -
Total Liabilities 12,657 29,844 - 31,475
Deferred Inflow of Resources:
Unavailable revenues - 874,054 - -
Fund Balances:
Restricted for:
Planning and development projects - - - -
Public safety - - - 58,638
Community services - 4,911,709 - -
Public works 377,454 - - -
Capital projects - - - -
Unassigned - - - -
Total Fund Balances 377,454 4,911,709 - 58,638
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 390,111$ 5,815,607$ -$ 90,113$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2018
84
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflow of Resources:
Unavailable revenues
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Lighting and
Indian Gaming Landscaping Quimby Public Safety
-$ 449,949$ 4,583,220$ 40,338$
- 18,880 - -
- 922 12,696 105
- -- -
-$ 469,751$ 4,595,916$ 40,443$
-$ 59,126$ -$ -$
- - - -
- - - -
- - - -
- 59,126 - -
- - - -
- - - -
- - - 40,443
- - 4,595,916 -
- 410,625 - -
- - - -
- - - -
- 410,625 4,595,916 40,443
-$ 469,751$ 4,595,916$ 40,443$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2018
85
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflow of Resources:
Unavailable revenues
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Art in South Coast Development
Public Places Air Quality AB 939 Agreement
507,653$ 85,866$ 814,034$ 56,494$
- - 2,893 -
1,374 442 2,097 336
- 13,392 10,377 -
509,027$ 99,700$ 829,401$ 56,830$
-$ 10,044$ 2,742$ -$
- - - -
- - - -
- - - -
- 10,044 2,742 -
- - - -
- 89,656 826,659 -
- - - -
509,027 - - -
- - - -
- - - 56,830
- - - -
509,027 89,656 826,659 56,830
509,027$ 99,700$ 829,401$ 56,830$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2018
86
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflow of Resources:
Unavailable revenues
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Justice Transportation
Law Assistance Uniform
Enforcement Grant Measure A Mitigation Fee
298,392$ -$ 1,119,892$ 65,249$
- - 122,874 -
530 -2,782 99
12,299 ---
311,221$ -$ 1,245,548$ 65,348$
3,078$ -$ -$ 64,250$
- - - -
5,667 268 - -
- - - -
8,745 268 - 64,250
- - - -
- - - 1,098
302,476 - - -
- - - -
- -1,245,548 -
- ---
- (268) - -
302,476 (268) 1,245,548 1,098
311,221$ -$ 1,245,548$ 65,348$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2018
87
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflow of Resources:
Unavailable revenues
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Parks and Library
Infrastructure Transportation Recreation Development
23,851$ 3,089,108$ 887,905$ -$
- - - -
63 9,272 - -
- - - -
23,914$ 3,098,380$ 887,905$ -$
-$ -$ -$ -$
- - - 1,572,557
- - - -
- - - -
- - - 1,572,557
- - - -
- - - -
- - - -
- - - -
- - - -
23,914 3,098,380 887,905 -
- - - (1,572,557)
23,914 3,098,380 887,905 (1,572,557)
23,914$ 3,098,380$ 887,905$ -$
Capital Projects Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2018
88
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflow of Resources:
Unavailable revenues
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Community
Center Street Facility Park Facility Fire Facility
136,626$ -$ 3$ -$
- - - -
331 -2 -
- ---
136,957$ -$ 5$ -$
-$-$-$-$
- -- -
- 122 - -
-1,891,472 -490,843
-1,891,594 -490,843
- - - -
- - - -
- - - -
- - - -
- - - -
136,957 -5 -
- (1,891,594) -(490,843)
136,957 (1,891,594) 5 (490,843)
136,957$ -$ 5$ -$
Capital Project Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2018
89
Assets:
Pooled cash and investments
Receivables:
Taxes
Accrued interest
Due from other governments
Total Assets
Liabilities, Deferred Inflow of
Resources and Fund Balances:
Liabilities:
Accounts payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflow of Resources:
Unavailable revenues
Fund Balances:
Restricted for:
Planning and development projects
Public safety
Community services
Public works
Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Debt Service
Funds
Total
Financing Governmental
Authority Funds
177$ 17,506,092$
- 144,647
- 45,121
- 970,494
177$ 18,666,354$
-$ 213,216$
- 1,572,557
- 6,057
- 2,382,315
- 4,174,145
- 874,054
- 917,413
- 401,557
- 10,016,652
- 2,033,627
177 4,204,168
- (3,955,262)
177 13,618,155
177$ 18,666,354$
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
90
Library and Federal
Gas Tax Museum Assistance SLESA
Revenues:
Taxes -$ -$ -$ -$
Assessments - - - -
Intergovernmental 1,002,529 2,626,417 187,282 156,083
Use of money and property 3,651 36,102 - 89
Developer participation - - - -
Miscellaneous 46,243 - - -
Total Revenues 1,052,423 2,662,519 187,282 156,172
Expenditures:
Current:
General government - - - -
Public safety - - - 83,095
Planning and development - - - -
Community services - 1,705,560 - -
Public works 1,108,502 - 18,360 -
Capital outlay - 532,125 - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 1,108,502 2,237,685 18,360 83,095
Excess (Deficiency) of Revenues
Over (Under) Expenditures (56,079) 424,834 168,922 73,077
Other Financing Sources (Uses):
Transfers in 293,500 - - -
Transfers out (187,507) - (168,922) -
Total Other Financing Sources (Uses)105,993 - (168,922) -
Net Change in Fund Balances 49,914 424,834 - 73,077
Fund Balances, Beginning of Year 327,540 4,486,875 - (14,439)
Fund Balances, End of Year 377,454$ 4,911,709$ -$ 58,638$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2018
91
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Lighting and
Indian Gaming Landscaping Quimby Public Safety
-$ -$ -$ -$
- 950,541 - -
- - - -
- 1,899 38,169 295
- - 15,138 -
- - - -
- 952,440 53,307 295
- - - -
- - - -
- - - -
- - - -
- 1,395,988 - -
- - - -
- - - -
- - - -
- 1,395,988 - -
- (443,548) 53,307 295
- 490,000 - 2,000
(38,048) - (462,938) -
(38,048) 490,000 (462,938) 2,000
(38,048) 46,452 (409,631) 2,295
38,048 364,173 5,005,547 38,148
-$ 410,625$ 4,595,916$ 40,443$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2018
92
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Art in South Coast Development
Public Places Air Quality AB 939 Agreement
-$ -$54,111$ -$
- -- -
- 51,892 10,377 -
4,034 2,004 5,811 1,611
32,607 - - -
6,750 - - -
43,391 53,896 70,299 1,611
- - - -
- - - -
-38,920 17,901 -
14,686 - - -
- - - -
70,012 91,566 -80,996
- - - -
- - - -
84,698 130,486 17,901 80,996
(41,307) (76,590) 52,398 (79,385)
- - - -
- - - -
- - - -
(41,307) (76,590) 52,398 (79,385)
550,334 166,246 774,261 136,215
509,027$ 89,656$ 826,659$ 56,830$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2018
93
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Justice Transportation
Law Assistance Uniform
Enforcement Grant Measure A Mitigation Fee
-$ -$ 761,137$ -$
- - - -
18,040 - - -
(1,326) - 7,219 7
- - - -
- - 11,147 -
16,714 - 779,503 7
- - - -
21,548 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
21,548 - - -
(4,834) - 779,503 7
300,000 - - -
- - (388,747) -
300,000 - (388,747) -
295,166 - 390,756 7
7,310 (268) 854,792 1,091
302,476$ (268)$ 1,245,548$ 1,098$
Special Revenue Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2018
94
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Parks and Library
Infrastructure Transportation Recreation Development
-$ -$ -$-$
- - - -
- - - -
182 30,144 (6,762) -
- 509,221 335,872 56,416
- - - -
182 539,365 329,110 56,416
- - - -
- - - -
- - - -
- - - -
-400,000 - -
--- -
- - - -
- - - 19,138
-400,000 -19,138
182 139,365 329,110 37,278
- - - -
-(697,811) - -
-(697,811) - -
182 (558,446) 329,110 37,278
23,732 3,656,826 558,795 (1,609,835)
23,914$ 3,098,380$ 887,905$ (1,572,557)$
Capital Projects Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2018
95
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Community
Center Street Facility Park Facility Fire Facility
-$ -$ -$ -$
- - - -
- - - -
837 - 10 -
21,156 20,782 6,560 66,456
- - - -
21,993 20,782 6,570 66,456
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
-21,296 - 4,634
-21,296 - 4,634
21,993 (514)6,570 61,822
-6,567 - -
--(6,567) -
- 6,567 (6,567) -
21,993 6,053 3 61,822
114,964 (1,897,647) 2 (552,665)
136,957$ (1,891,594)$ 5$ (490,843)$
Capital Projects Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2018
96
Revenues:
Taxes
Assessments
Intergovernmental
Use of money and property
Developer participation
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Debt Service
Funds
Total
Financing Governmental
Authority Funds
-$ 815,248$
-950,541
-4,052,620
671,451 795,427
-1,064,208
-64,140
671,451 7,742,184
3,133 3,133
-104,643
-56,821
-1,720,246
-2,922,850
-774,699
615,000 615,000
53,141 98,209
671,274 6,295,601
177 1,446,583
95 1,092,162
-(1,950,540)
95 (858,378)
272 588,205
(95) 13,029,950
177$ 13,618,155$
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2018
97
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 327,540$ 327,540$ 327,540$ -$
Resources (InFlows):
Intergovernmental 1,119,900 1,119,900 1,002,529 (117,371)
Use of money and property 2,000 2,000 3,651 1,651
Miscellaneous - - 46,243 46,243
Transfers in 293,500 293,500 293,500 -
Amounts Available for Appropriations 1,742,940 1,742,940 1,673,463 (69,477)
Charges to Appropriation (OutFlows):
Public works 1,204,500 1,211,740 1,108,502 103,238
Transfers out 230,500 230,500 187,507 42,993
Total Charges to Appropriations 1,435,000 1,442,240 1,296,009 146,231
Budgetary Fund Balance, June 30 307,940$ 300,700$ 377,454$ 76,754$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LIBRARY AND MUSEUM
YEAR ENDED JUNE 30, 2018
98
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,486,875$ 4,486,875$ 4,486,875$ -$
Resources (InFlows):
Intergovernmental 2,244,000 2,244,000 2,626,417 382,417
Use of money and property 10,000 10,000 36,102 26,102
Amounts Available for Appropriations 6,740,875 6,740,875 7,149,394 408,519
Charges to Appropriation (OutFlows):
Community services 1,947,500 1,994,500 1,705,560 288,940
Capital Outlay - 530,000 532,125 (2,125)
Total Charges to Appropriations 1,947,500 2,524,500 2,237,685 286,815
Budgetary Fund Balance, June 30 4,793,375$ 4,216,375$ 4,911,709$ 695,334$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
FEDERAL ASSISTANCE
YEAR ENDED JUNE 30, 2018
99
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$-$ -$
Resources (InFlows):
Intergovernmental 125,800 189,089 187,282 (1,807)
Amounts Available for Appropriations 125,800 189,089 187,282 (1,807)
Charges to Appropriation (OutFlows):
Public Works 20,200 20,200 18,360 1,840
Transfers out 105,600 168,889 168,922 (33)
Total Charges to Appropriations 125,800 189,089 187,282 1,807
Budgetary Fund Balance, June 30 -$ -$ -$-$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
SLESA
YEAR ENDED JUNE 30, 2018
100
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (14,439)$ (14,439)$ (14,439)$ -$
Resources (InFlows):
Intergovernmental 100,000 100,000 156,083 56,083
Use of money and property 100 100 89 (11)
Amounts Available for Appropriations 85,661 85,661 141,733 56,072
Charges to Appropriation (OutFlows):
Public safety 100,000 100,000 83,095 16,905
Total Charges to Appropriations 100,000 100,000 83,095 16,905
Budgetary Fund Balance, June 30 (14,339)$ (14,339)$ 58,638$ 72,977$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LIGHTING AND LANDSCAPING
YEAR ENDED JUNE 30, 2018
101
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 364,173$ 364,173$ 364,173$ -$
Resources (InFlows):
Assessments 958,900 958,900 950,541 (8,359)
Use of money and property - - 1,899 1,899
Transfers in 490,000 490,000 490,000 -
Amounts Available for Appropriations 1,813,073 1,813,073 1,806,612 (6,461)
Charges to Appropriation (OutFlows):
Public works 1,519,300 1,527,920 1,395,987 131,933
Total Charges to Appropriations 1,519,300 1,527,920 1,395,987 131,933
Budgetary Fund Balance, June 30 293,773$ 285,153$ 410,625$ 125,472$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
QUIMBY
YEAR ENDED JUNE 30, 2018
102
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,005,547$ 5,005,547$ 5,005,547$ -$
Resources (InFlows):
Investment income 15,000 15,000 38,169 23,169
Developer participation 40,000 40,000 15,138 (24,862)
Amounts Available for Appropriations 5,060,547 5,060,547 5,058,854 (1,693)
Charges to Appropriation (OutFlows):
Transfers out - 4,013,078 462,938 3,550,140
Total Charges to Appropriations - 4,013,078 462,938 3,550,140
Budgetary Fund Balance, June 30 5,060,547$ 1,047,469$ 4,595,916$ 3,548,447$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY
YEAR ENDED JUNE 30, 2018
103
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 38,148$ 38,148$ 38,148$ -$
Resources (InFlows):
Use of money and property 100 100 295 195
Transfers in 2,000 2,000 2,000 -
Amounts Available for Appropriations 40,248 40,248 40,443 195
Budgetary Fund Balance, June 30 40,248$ 40,248$ 40,443$ 195$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2018
104
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 550,334$ 550,334$ 550,334$ -$
Resources (InFlows):
Use of money and property 3,500 3,500 4,034 534
Developer participation 50,000 35,000 32,607 (2,393)
Miscellaneous revenue - 6,700 6,750 50
Amounts Available for Appropriations 603,834 595,534 593,725 (1,809)
Charges to Appropriation (OutFlows):
Community services 22,000 22,000 14,686 7,314
Capital outlay 100,000 100,000 70,012 29,988
Transfers out - 200,000 - 200,000
Total Charges to Appropriations 122,000 322,000 84,698 237,302
Budgetary Fund Balance, June 30 481,834$ 273,534$ 509,027$ 235,493$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY
YEAR ENDED JUNE 30, 2018
105
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 166,246$ 166,246$ 166,246$ -$
Resources (InFlows):
Intergovernmental 50,000 50,000 51,892 1,892
Use of money and property 300 300 2,004 1,704
Amounts Available for Appropriations 216,546 216,546 220,142 3,596
Charges to Appropriation (OutFlows):
Planning and development 32,000 119,000 130,486 (11,486)
Total Charges to Appropriations 32,000 119,000 130,486 (11,486)
Budgetary Fund Balance, June 30 184,546$ 97,546$ 89,656$ (7,890)$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AB 939
YEAR ENDED JUNE 30, 2018
106
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 774,261$ 774,261$ 774,261$ -$
Resources (InFlows):
Taxes 60,000 60,000 54,111 (5,889)
Intergovernmental - - 10,377 10,377
Use of money and property 2,500 2,500 5,811 3,311
Amounts Available for Appropriations 836,761 836,761 844,560 7,799
Charges to Appropriation (OutFlows):
Planning and development 20,000 20,000 17,901 2,099
Total Charges to Appropriations 20,000 20,000 17,901 2,099
Budgetary Fund Balance, June 30 816,761$ 816,761$ 826,659$ 9,898$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2018
107
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 7,310$ 7,310$ 7,310$ -$
Resources (InFlows):
Intergovernmental - 18,300 18,040 (260)
Use of money and property - - (1,326) (1,326)
Transfer In 300,000 300,000 300,000 -
Amounts Available for Appropriations 307,310 325,610 324,024 (1,586)
Charges to Appropriation (OutFlows):
Public safety - 6,000 21,548 (15,548)
Total Charges to Appropriations - 6,000 21,548 (15,548)
Budgetary Fund Balance, June 30 307,310$ 319,610$ 302,476$ (17,134)$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
JUSTICE ASSISTANCE GRANT
YEAR ENDED JUNE 30, 2018
108
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (268)$ (268)$ (268)$ -$
Resources (InFlows):
Intergovernmental - - - -
Use of money and property - - - -
Amounts Available for Appropriations (268) (268) (268) -
Budgetary Fund Balance, June 30 (268)$ (268)$ (268)$ -$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30, 2018
109
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 854,792$ 854,792$ 854,792$ -$
Resources (InFlows):
Taxes 724,500 724,500 761,137 36,637
Use of money and property - - 7,219 7,219
Miscellaneous revenue - 11,000 11,147 147
Amounts Available for Appropriations 1,579,292 1,590,292 1,634,295 44,003
Charges to Appropriation (OutFlows):
Public Works - 11,000 - (11,000)
Transfers out 787,000 1,827,604 388,747 1,438,857
Total Charges to Appropriations 787,000 1,838,604 388,747 1,427,857
Budgetary Fund Balance, June 30 792,292$ (248,312)$ 1,245,548$ 1,493,860$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT
YEAR ENDED JUNE 30, 2018
110
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (178,798)$ (178,798)$ (178,798)$ -$
Resources (InFlows):
Intergovernmental -21,084,275 730,412 (20,353,863)
Use of money and property --(9,486) (9,486)
Developer participation -874,491 324,943 (549,548)
Transfers in 8,423,900 26,947,279 6,302,130 (20,645,149)
Amounts Available for Appropriations 8,245,102 48,727,247 7,169,201 (41,558,046)
Charges to Appropriation (OutFlows):
Planning and development - - 126,009 (126,009)
Capital outlay 8,614,400 48,708,066 7,390,754 41,317,312
Total Charges to Appropriations 8,614,400 48,708,066 7,516,763 41,191,303
Budgetary Fund Balance, June 30 (369,298)$ 19,181$ (347,562)$ (366,743)$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CIVIC CENTER
YEAR ENDED JUNE 30, 2018
111
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (7,169,261)$ (7,169,261)$ (7,169,261)$ -$
Resources (InFlows):
Use of money and property - - 17 17
Developer participation 100,000 120,000 145,477 25,477
Amounts Available for Appropriations (7,069,261) (7,049,261) (7,023,767) 25,494
Charges to Appropriation (OutFlows):
Debt service:
Interest and fiscal charges - 56,000 79,286 (23,286)
Total Charges to Appropriations - 56,000 79,286 (23,286)
Budgetary Fund Balance, June 30 (7,069,261)$ (7,105,261)$ (7,103,053)$ 2,208$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION
YEAR ENDED JUNE 30, 2018
112
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,656,826$ 3,656,826$ 3,656,826$ -$
Resources (InFlows):
Use of money and property 19,000 19,000 30,144 11,144
Developer participation 350,000 396,000 509,221 113,221
Amounts Available for Appropriations 4,025,826 4,071,826 4,196,191 124,365
Charges to Appropriation (OutFlows):
Public Works 400,000 400,000 400,000 -
Transfers out 605,100 3,037,525 697,811 2,339,714
Total Charges to Appropriations 1,005,100 3,437,525 1,097,811 2,339,714
Budgetary Fund Balance, June 30 3,020,726$ 634,301$ 3,098,380$ 2,464,079$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION
YEAR ENDED JUNE 30, 2018
113
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 558,795$ 558,795$ 558,795$ -$
Resources (InFlows):
Use of money and property - - (6,762) (6,762)
Developer participation 200,000 254,000 335,872 81,872
Amounts Available for Appropriations 758,795 812,795 887,905 75,110
Budgetary Fund Balance, June 30 758,795$ 812,795$ 887,905$ 75,110$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
LIBRARY DEVELOPMENT
YEAR ENDED JUNE 30, 2018
114
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,609,835)$ (1,609,835)$ (1,609,835)$ -$
Resources (InFlows):
Developer participation 30,000 43,000 56,416 13,416
Amounts Available for Appropriations (1,579,835) (1,566,835) (1,553,419) 13,416
Charges to Appropriation (OutFlows):
Debt service:
Interest and fiscal charges - 14,000 19,138 (5,138)
Total Charges to Appropriations - 14,000 19,138 (5,138)
Budgetary Fund Balance, June 30 (1,579,835)$ (1,580,835)$ (1,572,557)$ 8,278$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY CENTER
YEAR ENDED JUNE 30, 2018
115
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 114,964$ 114,964$ 114,964$ -$
Resources (InFlows):
Use of money and property 400 400 837 437
Developer participation 15,000 15,000 21,156 6,156
Amounts Available for Appropriations 130,364 130,364 136,957 6,593
Charges to Appropriation (OutFlows):
Transfers out 101,600 101,600 - (101,600)
Total Charges to Appropriations 101,600 101,600 - (101,600)
Budgetary Fund Balance, June 30 28,764$ 28,764$ 136,957$ 108,193$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STREET FACILITY
YEAR ENDED JUNE 30, 2018
116
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,897,647)$ (1,897,647)$ (1,897,647)$ -$
Resources (InFlows):
Developer participation 15,000 15,000 20,782 5,782
Transfers in -5,000 6,567 1,567
Amounts Available for Appropriations (1,882,647) (1,877,647) (1,870,298) 7,349
Charges to Appropriation (OutFlows):
Debt service:
Interest and fiscal charges - 15,000 21,296 (6,296)
Total Charges to Appropriations - 15,000 21,296 (6,296)
Budgetary Fund Balance, June 30 (1,882,647)$ (1,892,647)$ (1,891,594)$ 1,053$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PARK FACILITY
YEAR ENDED JUNE 30, 2018
117
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2$ 2$ 2$ -$
Resources (InFlows):
Use of money and property - - 10 10
Developer participation 4,000 4,000 6,560 2,560
Amounts Available for Appropriations 4,002 4,002 6,572 2,570
Charges to Appropriation (OutFlows):
Debt service:
Interest and fiscal charges - 5,000 6,567 (1,567)
Total Charges to Appropriations - 5,000 6,567 (1,567)
Budgetary Fund Balance, June 30 4,002$ (998)$ 5$ 1,003$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITY
YEAR ENDED JUNE 30, 2018
118
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (552,665)$ (552,665)$ (552,665)$ -$
Resources (InFlows):
Developer participation 40,000 55,000 66,456 11,456
Amounts Available for Appropriations (512,665) (497,665) (486,209) 11,456
Charges to Appropriation (OutFlows):
Debt service:
Interest and fiscal charges - 3,000 4,634 (1,634)
Total Charges to Appropriations - 3,000 4,634 (1,634)
Budgetary Fund Balance, June 30 (512,665)$ (500,665)$ (490,843)$ 9,822$
Budget Amounts
CITY OF LA QUINTA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2018
119
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (95)$ (95)$ (95)$ -$
Resources (InFlows):
Use of money and property 671,400 671,400 671,451 51
Transfers in - - 95 95
Amounts Available for Appropriations 671,305 671,305 671,451 146
Charges to Appropriation (OutFlows):
General government 3,300 3,300 3,133 167
Debt service:
Principal retirement 615,000 615,000 615,000 -
Interest and fiscal charges 53,100 53,100 53,141 (41)
Total Charges to Appropriations 671,400 671,400 671,274 126
Budgetary Fund Balance, June 30 (95)$ (95)$ 177$ 272$
Budget Amounts
120
INTERNAL SERVICE FUNDS
Internal service funds are used to account for activities involved in rendering services to departments within the
City. Costs of materials and services used are accumulated in this fund and charged to the user departments as
such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund – To account for the operational maintenance and ultimate replacement of City
owned and operated vehicles and equipment.
Information Technology Fund – To account for the purchase and replacement of information systems.
Park Equipment and Facilities Fund – To account for the purchase and replacement of City owned parked facility
infrastructure.
Insurance Fund – To account for the City’s insurance coverage.
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2018
121
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Assets:
Current:
Cash and investments 2,830,200$ 774,169$ 3,107,175$ 1,247$ 6,712,791$
Receivables:
Accrued interest 7,582 1,800 8,214 462 18,058
Prepaid costs - 28,986 - 614,146 643,132
Total Current Assets 2,837,782 804,955 3,115,389 615,855 7,373,981
Noncurrent:
Capital assets - net of accumulated depreciation 1,456,498 376,159 13,148,195 - 14,980,852
Total Assets 4,294,280$ 1,181,114$ 16,263,584$ 615,855$ 22,354,833$
Liabilities and Net Position
Liabilities:
Current:
Accounts payable 11,102$ 57,406$ 52,698$ -$ 121,206$
Accrued liabilities - - - - -
Due to other funds - - - 358,057 358,057
Current portion of capital leases 107,450 - - - 107,450
Total Current Liabilities 118,552 57,406 52,698 358,057 586,713
Noncurrent:
Long-term portion of capital leases 531,173 5,112 - - 536,285
Total Liabilities 649,725 62,518 52,698 358,057 1,122,998
Net Position:
Net investment in capital assets 817,875 371,047 13,148,195 - 14,337,117
Unrestricted 2,826,680 747,549 3,062,691 257,798 6,894,718
Total Net Position 3,644,555 1,118,596 16,210,886 257,798 21,231,835
Total Liabilities and Net Position 4,294,280$ 1,181,114$ 16,263,584$ 615,855$ 22,354,833$
Governmental Activities - Internal Service Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
122
Park
Equipment Information Equipment and
Replacement Technology Facilities Insurance Totals
Operating Revenues:
Sales and service charges 564,000$ 750,142$ 300,000$ 989,000$ 2,603,142$
Operating Expenses:
Administration and general 86,573 73,206 1,000 323,931 484,710
Fuel and oil 54,198 - - - 54,198
Maintenance and parts 182,283 - - - 182,283
Contract services - 323,106 299,363 -622,469
Software and supplies - 357,577 - 580,417 937,994
Depreciation expense 155,260 155,646 530,421 -841,327
Total Operating Expenses 478,314 909,535 830,784 904,348 3,122,981
Operating Income (Loss)85,686 (159,393) (530,784) 84,652 (519,839)
Nonoperating Revenue (Expenses):
Interest revenue 22,039 4,622 23,428 2,982 53,071
Miscellaneous revenue 13,379 - - 3,986 17,365
Interest expense - (647) - - (647)
Gain on disposal of capital assets 130,235 89,804 - - 220,039
Total Nonoperating
Revenues (Expenses)165,653 93,779 23,428 6,968 289,828
Income (Loss) before transfers 251,339 (65,614) (507,356) 91,620 (230,011)
Transfers out (91,233) - - - (91,233)
Changes in Net Position 160,106 (65,614) (507,356) 91,620 (321,244)
Net Position:
Beginning of Year 3,484,449 1,184,210 16,718,242 166,178 21,553,079
End of Fiscal Year 3,644,555$ 1,118,596$ 16,210,886$ 257,798$ 21,231,835$
Governmental Activities - Internal Service Funds
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
123
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Cash Flows from Operating Activities:
Cash received from interfund services provided 564,000$ 750,142$ 300,000$ 987,871$ 2,602,013$
Cash paid to suppliers for goods and services (314,651) (730,102) (247,980) (993,136) (2,285,869)
Net Cash Provided (Used) by
Operating Activities 249,349 20,040 52,020 (5,265) 316,144
Cash Flows from Capital
and Related Financing Activities:
Capital contributions - - - - -
Acquisition and construction of capital assets (606,194) (101,160) (58,530) - (765,884)
Interest paid on capital debt - (647) - - (647)
Capital lease 210,995 (47,503) - - 163,492
Proceeds from sales of capital assets 130,235 89,804 - - 220,039
Net Cash Provided/(Used) for
Capital and Related Financing Activities (264,964) (59,506) (58,530) - (383,000)
Cash Flows from Non-Capital
and Related Financing Activities:
Other receipts - - - 3,986 3,986
Cash Flows from Investing Activities
Interest received (59,137) 3,847 19,597 2,526 (33,167)$
Net Cash Provided by
Investing Activities (59,137) 3,847 19,597 2,526 (33,167)
Net Increase (Decrease) in Cash and
Cash Equivalents (74,752) (35,619) 13,087 1,247 (96,037)
Cash and Cash Equivalents at Beginning of Year 2,904,952 809,788 3,094,088 - 6,808,828
Cash and Cash Equivalents at End of Year 2,830,200$ 774,169$ 3,107,175$ 1,247$ 6,712,791$
- - -
Reconciliation of Operating Income to Net Cash
Provided (used) by Operating Activities:
Operating income (loss) 85,686$ (159,393)$ (530,784)$ 84,652$ (519,839)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 155,260 155,646 530,421 - 841,327
(Increase) decrease in prepaid expenses - (11,742) - 55,239 43,497
Increase (decrease) in accounts payable 8,403 36,331 52,383 - 97,117
Increase (decrease) in accrued liabilities - (802) - (1,129) (1,931)
Increase (decrease) in due to other funds - - - (144,027) (144,027)
Total Adjustments 163,663 179,433 582,804 (89,917) 835,983
Net Cash Provided (Used) by
Operating Activities 249,349$ 20,040$ 52,020$ (5,265)$ 316,144$
Non-Cash Investing, Capital, and Financing Activities:
There were no non-cash transactions in the current year.
Governmental Activities - Internal Service Funds
124
AGENCY FUNDS
Agency funds are used to account for assets held by the City as an agent for individual, private organizations and
other governmental units. The agency funds and their purposes are as follows:
The City of La Quinta has the following agency funds:
Assessment District No. 97-1 and 2001-1 – To account for assessments paid to the City for debt services payments
on bond issues used to finance sewer improvements.
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
ALL AGENCY FUNDS
JUNE 30, 2018
125
Assessment Assessment
District No. 97-1 District No. 2001 Totals
Assets:
Pooled cash and investments 28,477$ 143,317$ 171,794$
Receivables:
Accrued interest 77 -77
Total Assets 28,554$ 143,317$ 171,871$
Liabilities:
Deposits payable 28,554$ 143,317$ 171,871$
CITY OF LA QUINTA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2018
126
Balance Balance
7/1/2017 Additions Deductions 6/30/2018
Assessment District No. 97-1
Assets:
Pooled cash and investments 29,051$ 1,111$ 1,687$ 28,475$
Receivables:
Taxes 733 -733 -
Total Assets 29,784$ 1,111$ 2,420$ 28,475$
Liabilities:
Deposits payable 29,784$ -$ 1,309$ 28,475$
Total Liabilities 29,784$ -$ 1,309$ 28,475$
Assessment District No. 2001-1
Assets:
Pooled cash and investments 144,261$ -$ 946$ 143,315$
Receivables:
Taxes - - - -
Total Assets 144,261$ -$ 946$ 143,315$
Liabilities:
Deposits payable 144,261$ -$ 946$ 143,315$
Total Liabilities 144,261$ -$ 946$ 143,315$
Total - All Agency Funds
Assets:
Pooled cash and investments 173,312$ 1,111$ 2,633$ 171,790$
Receivables:
Taxes 733 -733 -
Total Assets 174,045$ 1,111$ 3,366$ 171,790$
Liabilities:
Deposits payable 174,045$ -$ 2,255$ 171,790$
Total Liabilities 174,045$ -$ 2,255$ 171,790$
This page left blank intentionally.
127
STATISTICAL SECTION (UNAUDITED)
This part of the City of La Quinta' comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the City’s financial performance and well-being have changed over time. 128
Revenue Capacity
These schedules contain information to help the reader assess the City’s most
significant local revenue sources, general and Redevelopment property taxes. 140
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt
in the future. 150
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place. 157
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the services
the City provides and the activities it performs. 160
Sources: Unless otherwise noted, the information in these schedules was derived from the City's comprehensive
annual financial reports for the relevant year.
CITY OF LA QUINTA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2009 2010 2011 2012 2013
Governmental Activities:
Net investment in capital assets 323,669,955$ 336,459,272$ 276,787,752$ 534,388,479$ 529,681,342$
Restricted 105,297,168 96,332,870 107,042,126 26,585,382 49,598,397
Unrestricted 96,654,981 77,187,433 97,009,428 89,832,811 83,399,745
Total Governmental Activities Net Position 525,622,104 509,979,575 480,839,306 650,806,672 662,679,484
Business-Type Activities:
Net investment in capital assets 42,536,608 42,879,482 42,491,051 42,105,683 41,741,443
Restricted -----
Unrestricted (3,937,454) (4,863,848) (4,918,951) (4,745,892) (4,750,604)
Total Business-Type Activities Net Position 38,599,154 38,015,634 37,572,100 37,359,791 36,990,839
Primary Government:
Net investment in capital assets 366,206,563 379,338,754 319,278,803 576,494,162 571,422,785
Restricted 105,297,168 96,332,870 107,042,126 26,585,382 49,598,397
Unrestricted 92,717,527 72,323,585 92,090,477 85,086,919 78,649,141
Total Primary Government Net Position 564,221,258 547,995,209 518,411,406 688,166,463 699,670,323
Fiscal Year
Source:City of La Quinta
128
TABLE 1
2014 2015 2016 2017 2018
Governmental Activities:
527,614,666$ 523,495,389$ 516,499,682$ 517,039,487$ 510,913,594$ Net investment in capital assets
53,669,248 62,472,221 61,148,731 38,824,860 39,204,789 Restricted
83,907,046 74,362,189 84,439,071 118,125,125 130,950,644 Unrestricted
665,190,960 660,329,799 662,087,484 673,989,472 681,069,027 Total Governmental Activities Net Position
Business-Type Activities:
41,354,565 44,118,111 43,898,784 43,836,868 43,585,880 Net investment in capital assets
----Restricted
(4,674,666) (4,892,647) (5,086,906) (5,140,966) (5,203,212) Unrestricted
36,679,899 39,225,464 38,811,878 38,695,902 38,382,668 Total Business-Type Activities Net Position
Primary Government:
568,969,231 567,613,500 560,398,466 560,876,355 554,499,474 Net investment in capital assets
53,669,248 62,472,221 61,148,731 38,824,860 39,263,604 Restricted
79,232,380 69,469,542 79,352,165 112,984,159 125,688,617 Unrestricted
701,870,859 699,555,263 700,899,362 712,685,374 719,451,695 Total Primary Government Net Position
129
CITY OF LA QUINTA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2009 2010 2011 2012 2013
Expenditures:
Governmental activities:
General government 7,836,146$ 34,287,068$ 11,283,358$ 6,183,712$ 4,511,023$
Public safety 19,736,941 21,274,519 21,070,458 20,815,454 21,047,691
Planning and development 7,317,689 5,173,326 18,715,283 6,378,352 2,274,541
Community services 14,808,850 15,923,380 4,735,964 5,093,402 4,986,104
Public works 11,100,833 12,326,726 10,757,279 13,288,521 11,803,133
Contribution to other agencies - - 31,324,064 - -
Interest on long-term debt 15,631,438 15,330,603 14,353,359 3,021,496 447,048
Total governmental activities expenditures 76,431,897 104,315,622 112,239,765 54,780,937 45,069,540
Business-type activities:
Golf course 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855
Total business-type activities expenditures 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855
80,872,443 108,485,390 116,442,039 58,866,219 49,278,395
Program Revenues:
Governmental activities:
Charges for services:
General government 25,053 21,439 47,696 86,869 38,812
Public safety 1,373,952 1,100,491 1,044,399 1,020,822 927,604
Planning and development 138,391 69,391 74,471 68,470 112,695
Community services 275,178 250,557 210,151 247,397 245,392
Public works 1,308,702 1,124,647 1,086,771 1,080,744 1,209,438
Operating grants and contributions 10,725,280 15,363,650 13,152,942 11,289,673 28,068,940
Capital grants and contributions 10,647,270 5,974,311 3,157,828 9,990,793
Total governmental activities program revenues 24,493,826 23,904,486 18,774,258 23,784,768 30,602,881
Business-type activities:
Charges for services:
Golf course 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879
Capital grants and contributions - - - - -
Total business-type activities program revenues 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879
27,861,961 27,489,482 22,530,873 27,656,666 34,339,760
Net Revenues (Expenditures):
Governmental activities (51,938,071) (80,411,136) (93,465,507) (30,996,169) (14,466,659)
Business-type activities (1,072,411) (584,772) (445,659) (213,384) (471,976)
(53,010,482) (80,995,908) (93,911,166) (31,209,553) (14,938,635)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property taxes 6,653,583 6,278,470 5,942,353 21,370,476 7,043,604
Tax increment 36,702,197 35,390,317 32,569,795 - -
Transient occupancy taxes 4,480,467 4,265,438 4,737,968 5,446,883 5,980,684
Sales tax 7,279,513 6,927,388 7,323,835 7,713,741 7,833,545
Franchise taxes 1,533,249 1,585,427 1,607,829 1,687,440 1,669,476
Business license taxes 285,304 302,223 285,270 293,592 292,966
Other taxes 455,089 461,957 437,235 428,963 518,778
Motor vehicle in lieu, unrestricted 3,940,801 3,714,437 3,515,395 3,173,826 3,157,330
Investment income 7,387,244 5,362,684 4,693,974 1,925,255 1,605,718
Gain (loss) on sale of capital assets 21,542 2,330 - - 28,551
Miscellaneous 118,567 477,936 3,211,584 268,644 192,509
Extraordinary gain/loss on dissolution of RDA - - - 158,654,715 (2,189,984)
Transfers - - - - -
Total governmental activities 68,857,556 64,768,607 64,325,238 200,963,535 26,133,177
Business-type activities:
Investment income 3,074 1,252 2,125 1,075 2,225
Gain (loss) on sale of capital assets - - - - -
Miscellaneous - - - - 100,799
Transfers - - - - -
Total business-type activities 3,074 1,252 2,125 1,075 103,024
Total Primary Government 68,860,630 64,769,859 64,327,363 200,964,610 26,236,201
Changes in Net Position
Governmental activities 16,919,485 (15,642,529) (29,140,269) 169,967,366 11,666,518
Business-type activities (1,069,337) (583,520) (443,534) (212,309) (368,952)
Total Primary Government 15,850,148 (16,226,049) (29,583,803) 169,755,057 11,297,566
Total Primary Government Expenditures
Total Primary Government Program Revenues
Fiscal Year
Total Net Revenues (Expenditures)
Source:City of La Quinta
130
TABLE 2
2014 2015 2016 2017 2018
Expenditures:
Governmental activities:
4,830,239$ 5,166,732$ 5,645,004$ 5,565,727$ 8,869,174$ General government
21,169,423 21,636,149 22,067,603 23,378,824 22,508,088 Public safety
3,098,015 2,212,013 3,359,732 2,882,321 4,352,134 Planning and development
4,130,085 5,992,362 6,214,098 6,584,268 9,231,268 Community services
12,610,994 18,116,732 12,157,245 10,927,160 15,580,975 Public works
- ---Contribution to other agencies
405,977 340,716 343,129 309,463 1,468,971 Interest on long-term debt
46,244,733 53,464,704 49,786,811 49,647,763 62,010,610 Total governmental activities expenditures
Business-type activities:
4,971,977 5,053,360 4,373,586 3,965,644 4,318,463 Golf course
4,971,977 5,053,360 4,373,586 3,965,644 4,318,463 Total business-type activities expenditures
51,216,710 58,518,064 54,160,397 53,613,407 66,329,073 Total Primary Government Expenditures
Program Revenues:
Governmental activities:
Charges for services:
71,042 121,140 192,538 504,127 883,153 General government
1,412,819 1,655,421 1,378,704 341,368 367,848 Public safety
595,980 489,589 467,053 564,327 724,499 Planning and development
1,224,719 307,869 386,824 453,098 442,656 Community services
1,195,703 1,197,069 1,134,630 741,703 1,054,902 Public works
14,587,153 16,829,107 12,213,338 6,187,803 4,259,916 Operating grants and contributions
3,981,286 3,536,444 1,076,145 3,316,153 4,455,060 Capital grants and contributions
23,068,702 24,136,639 16,849,232 12,108,579 12,188,034 Total governmental activities program revenues
Business-type activities:
Charges for services:
3,481,424 3,561,857 3,621,495 3,446,340 3,567,718 Golf course
- 2,872,122 --Capital grants and contributions
3,481,424 6,433,979 3,621,495 3,446,340 3,567,718 Total business-type activities program revenues
26,550,126 30,570,618 20,470,727 15,554,919 15,755,752 Total Primary Government Program Revenues
Net Revenues (Expenditures):
(23,176,031) (29,328,065) (32,937,579) (37,539,184) (49,822,576) Governmental activities
(1,490,553) 1,380,619 (752,091) (519,304) (750,745) Business-type activities
(24,666,584) (27,947,446) (33,689,670) (38,058,488) (50,573,321) Total Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
9,193,753 8,776,491 8,798,296 15,521,335 15,887,015 Property taxes
- ---Tax increment
6,307,737 6,637,183 7,835,745 9,433,970 10,752,788 Transient occupancy taxes
8,786,819 8,873,008 9,107,046 10,060,305 18,956,985 Sales tax
1,688,263 1,861,453 1,799,938 1,815,491 1,977,179 Franchise taxes
307,654 306,087 334,465 365,451 345,187 Business license taxes
580,834 530,336 516,964 585,333 718,472 Other taxes
3,291,042 3,486,367 3,651,549 3,813,213 3,941,348 Motor vehicle in lieu, unrestricted
2,190,357 1,981,343 2,390,468 442,710 803,654 Investment income
- ---Gain (loss) on sale of capital assets
243,498 296,346 376,193 460,614 649,566 Miscellaneous
(6,402,450) --7,344,050 3,624,121 Extraordinary gain/loss on dissolution of RDA
(500,000) (247,739) (115,400) (401,300) (434,000) Transfers
25,687,507 32,500,875 34,695,264 49,441,172 57,222,315 Total governmental activities
Business-type activities:
1,567 2,043 4,282 2,028 3,511 Investment income
- ---Gain (loss) on sale of capital assets
678,046 915,164 218,823 -Miscellaneous
500,000 247,739 115,400 401,300 434,000 Transfers
1,179,613 1,164,946 338,505 403,328 437,511 Total business-type activities
26,867,120 33,665,821 35,033,769 49,844,500 57,659,826 Total Primary Government
Changes in Net Position
2,511,476 3,172,810 1,757,685 11,901,988 7,399,739 Governmental activities
(310,940) 2,545,565 (413,586) (115,976) (313,234) Business-type activities
2,200,536 5,718,375 1,344,099 11,786,012 7,086,505 Total Primary Government
131
CITY OF LA QUINTA
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
2009 2010 2011 2012 2013
Expenditures:
General government 7,836,146$ 34,287,068$ 11,283,358$ 6,183,712$ 4,511,023$
Public safety 19,736,941 21,274,519 21,070,458 20,815,454 21,047,691
Planning and development 7,317,689 5,173,326 18,715,283 6,378,352 2,274,541
Community services 14,808,850 15,923,380 4,735,964 5,093,402 4,986,104
Public works 11,100,833 12,326,726 10,757,279 13,288,521 11,803,133
Contribution to other agencies --31,324,064 --
Interest on long-term debt 15,631,438 15,330,603 14,353,359 3,021,496 447,048
Total Governmental Activities Expenditures 76,431,897 104,315,622 112,239,765 54,780,937 45,069,540
Program Revenues:
Charges for services:
General government 25,053 21,439 47,696 86,869 38,812
Public safety 1,373,952 1,100,491 1,044,399 1,020,822 927,604
Planning and development 138,391 69,391 74,471 68,470 112,695
Community services 275,178 250,557 210,151 247,397 245,392
Public works 1,308,702 1,124,647 1,086,771 1,080,744 1,209,438
Operating grants and contributions 10,725,280 15,363,650 13,152,942 11,289,673 28,068,940
Capital grants and contributions 10,647,270 5,974,311 3,157,828 9,990,793 4,115,238
24,493,826 23,904,486 18,774,258 23,784,768 34,718,119
Net Revenues (Expenditures)(51,938,071) (80,411,136) (93,465,507) (30,996,169) (10,351,421)
General Revenues and Other Changes in Net Position:
Taxes:
Property taxes 6,653,583 6,278,470 5,942,353 21,370,476 7,043,604
Tax increment 36,702,197 35,390,317 32,569,795 --
Transient occupancy taxes 4,480,467 4,265,438 4,737,968 5,446,883 5,980,684
Sales tax 7,279,513 6,927,388 7,323,835 7,713,741 7,833,545
Franchise tax 1,533,249 1,585,427 1,607,829 1,687,440 1,669,476
Business license taxes 285,304 302,223 285,270 293,592 292,966
Other tax 455,089 461,957 437,235 428,963 518,778
Motor vehicle in lieu, unrestricted 3,940,801 3,714,437 3,515,395 3,173,826 3,157,330
Investment income 7,387,244 5,362,684 4,693,974 1,925,255 1,605,718
Gain (loss) on sale of capital assets 21,542 2,330 --28,551
Miscellaneous 118,567 477,936 3,211,584 268,644 192,509
Extraordinary gain/loss on dissolution of RDA ---158,654,715 (2,189,984)
Transfers -----
Total Governmental Activities 68,857,556 64,768,607 64,325,238 200,963,535 26,133,177
Changes in Net Position 16,919,485 (15,642,529) (29,140,269) 169,967,366 15,781,756
Fiscal Year
Total Governmental Activities Program Revenue
Source:City of La Quinta
132
TABLE 3
2014 2015 2016 2017 2018
Expenditures:
4,830,239$ 5,166,732$ 5,645,004$ 5,565,727$ 8,869,174$ General government
21,169,423 21,636,149 22,067,603 23,378,824 22,508,088 Public safety
3,098,015 2,212,013 3,359,732 2,882,321 4,352,134 Planning and development
4,130,085 5,992,362 6,214,098 6,584,268 9,231,268 Community services
12,610,994 18,116,732 12,157,245 10,927,160 15,580,975 Public works
-----Contribution to other agencies
405,977 340,716 343,129 309,463 1,468,971 Interest on long-term debt
46,244,733 53,464,704 49,786,811 49,647,763 62,010,610 Total Governmental Activities Expenditures
Program Revenues:
Charges for services:
71,042 121,140 192,538 504,127 883,153 General government
1,412,819 1,655,421 1,378,704 341,368 367,848 Public safety
595,980 489,589 467,053 564,327 724,499 Planning and development
1,224,719 307,869 386,824 453,098 442,656 Community services
1,195,703 1,197,069 1,134,630 741,703 1,054,902 Public works
14,587,153 16,829,107 12,213,338 6,187,803 4,259,916 Operating grants and contributions
3,981,286 3,536,444 1,076,145 3,316,153 4,455,060 Capital grants and contributions
23,068,702 24,136,639 16,849,232 12,108,579 12,188,034
Total Governmental Activities Program
Revenues
(23,176,031) (29,328,065) (32,937,579) (37,539,184) (49,822,576) Net Revenues (Expenditures)
General Revenues and Other Changes in
Net Position:
Taxes:
9,193,753 8,776,491 8,798,296 15,521,335 15,887,015 Property taxes
-----Tax increment
6,307,737 6,637,183 7,835,745 9,433,970 10,752,788 Transient occupancy taxes
8,786,819 8,873,008 9,107,046 10,060,305 18,956,985 Sales tax
1,688,263 1,861,453 1,799,938 1,815,491 1,977,179 Franchise tax
307,654 306,087 334,465 365,451 345,187 Business license taxes
580,834 530,336 516,964 585,333 718,472 Other tax
3,291,042 3,486,367 3,651,549 3,813,213 3,941,348 Motor vehicle in lieu, unrestricted
2,190,357 1,981,343 2,390,468 442,710 803,654 Investment income
--376,193 460,614 649,566 Gain (loss) on sale of capital assets
243,498 296,346 ---Miscellaneous
(6,402,450) --7,344,050 3,624,121 Extraordinary gain/loss on dissolution of RDA
(500,000) (247,739) (115,400) (401,300) (434,000) Transfers
25,687,507 32,500,875 34,695,264 49,441,172 57,222,315 Total Governmental Activities
2,511,476 3,172,810 1,757,685 11,901,988 7,399,739 Changes in Net Position
133
CITY OF LA QUINTA
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
(accrual basis of accounting)
2009 2010 2011 2012 2013
Expenditures:
Golf course 4,440,546$ 4,169,768$ 4,202,274$ 4,085,282$ 4,208,855$
Total Business-Type Activities Expenditures 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855
Program revenues:
Charges for services:
Golf course 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879
Capital grants and contributions -----
3,368,135 3,584,996 3,756,615 3,871,898 3,736,879
Net Revenues (Expenditures)(1,072,411) (584,772) (445,659) (213,384) (471,976)
General Revenues and Other Changes in Net Position:
Investment income 3,074 1,252 2,125 1,075 2,225
Gain (loss) on sale of capital assets -----
Miscellaneous ----100,799
Transfers -----
Capital contributions -----
Total Business-Type Activities 3,074 1,252 2,125 1,075 103,024
Changes in Net Position (1,069,337) (583,520) (443,534) (212,309) (368,952)
Total Business-Type Activities Program Revenues
Fiscal Year
Source:City of La Quinta
134
TABLE 4
2014 2015 2016 2017 2018
Expenditures:
4,971,977$ 5,053,360$ 4,373,586$ 3,965,644$ 4,318,463$ Golf course
4,971,977 5,053,360 4,373,586 3,965,644 4,318,463 Total Business-Type Activities Expenditures
Program revenues:
Charges for services:
3,481,424 3,561,857 3,621,495 3,446,340 3,567,718 Golf course
-2,872,122 ---Capital grants and contributions
3,481,424 6,433,979 3,621,495 3,446,340 3,567,718
(1,490,553) 1,380,619 (752,091) (519,304) (750,745) Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
1,567 2,043 4,282 2,028 3,511 Investment income
-----Gain (loss) on sale of capital assets
678,046 915,164 218,823 --Miscellaneous
500,000 247,739 115,400 401,300 434,000 Transfers
-----Capital contributions
1,179,613 1,164,946 338,505 403,328 437,511 Total Business-Type Activities
(310,940) 2,545,565 (413,586) (115,976) (313,234) Changes in Net Position
Total Business-Type Activities Program Revenues
135
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009 (1) 2010 (1) 2011 2012 2013
General fund:
Nonspendable:
Prepaid costs 12,424$ 9,030$ 23,260$ 27,481$ 11,786$
Land held for resale - - 8,320,000 8,320,000 8,320,000
Advances to other funds 46,137,692 57,897,671 15,373,104 15,417,929 15,509,691
Deposits 9,830 9,830 9,967 118,516 4,830
Due from Other Governments - - - - 41,378,966
Restricted for:
Debt service - - 169,631 173,426 -
Committed:
Emergency Reserve(2)18,201,948 17,774,648 18,018,595 17,516,295 16,034,995
Natural Disaster Reserve(2)
Economic Disaster Reserve(2)
Post retirement health benefits - 1,258,059 1,258,059 1,523,401 1,523,401
Capital Replacement Reserve(2)2,144,085 - - - 2,848,737
Cash Flow Reserve(2)- - - - -
Pension Trust
Carryovers - - - - -
Other - - - - -
Assigned:
Continuing appropriations 3,485,747 1,555,176 1,768,494 1,041,172 1,013,533
Public Safety (Note 12b)- - - - -
Sales Tax Reserve (Note 12 b)
Capital Projects (Note 12b)- - - - -
Unassigned 22,335,655 13,525,704 48,140,444 47,737,861 5,926,651
Total general fund 92,327,381 92,030,118 93,081,554 91,876,081 92,572,590
All other governmental funds:
Nonspendable:
Prepaid costs 19,197 7,740 10,563 12,875 10,310
Notes and loans 2,067,028 2,088,709 2,081,614 2,065,611 2,062,589
Advances to other funds 4,321,119 4,293,166 4,569,188 - -
Deposits 4,540 6,400 6,000 13,600 13,600
Restricted:
Planning and development projects 25,807,752 31,032,124 34,018,930 10,767,199 3,730,533
Public safety 245,468 48,852 96,364 245,187 258,968
Community services 11,387,631 11,675,417 10,248,314 11,162,057 11,626,441
Public works 7,539,181 448,731 396,355 145,823 262,754
Capital Projects 50,556,856 53,123,856 58,111,106 4,089,156 1,392,581
Debt service 5,490,098 3,890 4,001,426 2,534 2,234
Assigned:
Continuing appropriations 2,000 - - - -
Unassigned (19,339,823) (33,626,907) (13,250,398) (13,248,593) (13,179,196)
Total all other governmental funds 88,101,047 69,101,978 100,289,462 15,255,449 6,180,814
Total Governmental Funds 180,428,428 161,132,096 193,371,016 107,131,530 98,753,404
Fiscal Year
Notes:
(1)In Fiscal Year 2009-2010, the City implemented GASB 54 which changed the reporting requirements for fund balances in the financial
statements. This table has been updated to reflect the impact of GASB 54 not only for Fiscal Year 2009-10 but for all prior years.
(2) In Fiscal year 2017-18, the City adopted a reserves policy which modifed, added and/ or eliminated reserve category names.
Emergency Reserves are now split into Natural Disaster and Economic Disaster, Working Capital Reserve was re-named Cash Flow
Reserve, Capital Replacement and Pension Trust were added.
Source:City of La Quinta
136
TABLE 5
2014 2015 2016 2017 2018
General fund:
Nonspendable:
1,500$15,653$ 204,589$ 10,578$ 90,657$ Prepaid costs
8,320,000 8,320,000 8,320,000 8,320,000 8,320,000 Land held for resale
15,163,183 14,943,098 14,974,800 15,022,660 14,954,085 Advances to other funds
4,830 33,985 --Deposits
34,976,516 26,715,575 25,105,681 29,154,040 29,611,707 Due from Other Governments
Restricted for:
----Debt service
Committed:
16,034,995 15,372,600 15,576,000 16,534,000 Emergency Reserve(2)
7,400,000 Natural Disaster Reserve(2)
8,140,000 Economic Disaster Reserve(2)
1,523,401 1,523,401 1,523,400 1,523,400 Post retirement health benefits
1,507,429 1,727,390 2,302,000 -5,000,000 Capital Replacement Reserve(2)
2,836,820 3,843,150 3,894,000 4,134,000 5,000,000 Cash Flow Reserve(2)
2,000,000 Pension Trust
356,438 476,400 4,274,046 120,000 2,186,500 Carryovers
----Other
Assigned:
209,000 ---Continuing appropriations
---9,371,699 9,754,327 Public Safety (Note 12b)
5,169,970 Sales Tax Reserve (Note 12 b)
---6,322,570 4,996,815 Capital Projects (Note 12b)
10,699,641 13,837,312 13,822,012 16,949,526 19,199,506 Unassigned
91,633,753 86,808,564 89,996,528 107,462,473 121,823,567 Total general fund
All other governmental funds:
Nonspendable:
--8,422 10,349 Prepaid costs
----Notes and loans
----Advances to other funds
----Deposits
Restricted:
5,970,006 13,108,499 18,211,200 22,664,093 22,607,600 Planning and development projects
274,274 301,843 189,988 83,506 401,557 Public safety
12,459,516 10,711,704 9,872,124 10,040,222 10,016,652 Community services
1,571,163 1,129,697 1,250,827 1,546,505 2,033,627 Public works
1,590,168 3,873,699 3,597,221 4,490,534 4,204,168 Capital Projects
----Debt service
Assigned:
----Continuing appropriations
(12,370,462) (12,703,744) (11,655,344) (11,423,008) (11,405,877) Unassigned
9,494,665 16,421,698 21,474,438 27,412,201 27,857,727 Total all other governmental funds
101,128,418 103,230,262 111,470,966 134,874,674 149,681,294 Total Governmental Funds
137
CITY OF LA QUINTA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009 2010 2011 2012 2013
Revenues:
Taxes 99,816,072$ 93,831,918$ 88,498,457$ 53,632,023$ 23,506,679$
Assessments 927,816 966,639 956,048 950,292 954,058
Licenses and permits 871,167 472,409 547,071 482,831 566,510
Intergovernmental 18,679,355 19,473,076 19,005,643 15,875,582 15,464,942
Charges for services 673,779 484,043 501,418 635,111 625,813
Use of money and property 7,043,646 5,338,679 4,670,732 1,914,518 1,582,762
FInes and Forfeitures 240,591 395,823 327,751 303,773 18,377,253
Developer participation 2,243,785 273,739 945,805 903,144 1,226,825
Miscellaneous 720,185 608,342 319,763 276,327 491,267
Total Revenues 131,216,396 121,844,668 115,772,688 74,973,601 62,796,109
Expenditures
Current:
General government 7,230,436 30,220,882 10,885,519 4,881,922 4,587,888
Public safety 18,946,866 20,116,936 19,826,372 19,669,517 20,168,038
Planning and development 7,261,835 6,028,492 8,460,420 4,314,646 27,514,768
Community services 4,698,985 4,204,626 4,147,758 4,086,686 4,411,536
Public works 6,324,055 6,862,887 4,808,060 6,192,733 5,067,370
Capital projects 32,363,859 14,514,910 21,287,775 13,335,989 8,622,783
Debt service:
Principal retirement 6,319,580 6,616,412 7,011,261 7,066,726 556,871
Interest and fiscal charges 15,348,598 15,357,968 15,037,919 6,701,079 437,678
Payment to bond escrow - - - - -
Payments under pass-through obligations 42,426,670 38,710,894 35,607,089 16,755,441 -
Total Expenditures 140,920,884 142,634,007 127,072,173 83,004,739 71,366,932
(9,704,488) (20,789,339) (11,299,485) (8,031,138) (8,570,823)
Other financing sources (uses):
Issuance of tax allocation bonds - - 6,000,000 - -
Issuance of revenue bonds - - 28,850,000 - -
Transfers in 40,502,929 30,386,372 61,657,034 12,554,752 29,841,053
Transfers out (40,527,930) (28,893,365) (61,652,479) (12,580,120) (29,841,053)
Other debts issued 2,332,752 - - - -
Capital leases - - - - 71,045
Proceeds from sale of capital assets - - 8,683,850 875,275 121,652
Total Other Financing Sources (Uses)2,307,751 1,493,007 43,538,405 849,907 192,697
Extraordinary gain/loss on dissolution of RDA - - - (79,058,255) -
Net Change in Fund Balances (7,396,737) (19,296,332) 32,238,920 (86,239,486) (8,378,126)
59.0%47.6%53.0%43.7%1.6%
Fiscal Year
Excess (Deficiency) of Revenues Over (Under)
Expenditures
Debt Service as a Percentage of Noncapital
Expenditures (1)
Notes:
(1) The capitalizable expenditures were derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds.
Source:City of La Quinta
138
TABLE 6
2014 2015 2016 2017 2018
Revenues:
27,192,089$ 26,678,471$ 28,057,989$ 41,832,117$ 44,931,250$ Taxes
951,181 940,221 944,050 953,699 950,541 Assessments
953,540 1,356,978 1,161,820 1,118,911 1,394,820 Licenses and permits
16,506,666 15,702,943 14,960,676 4,870,334 12,555,259 Intergovernmental
1,238,277 1,341,438 1,332,541 1,021,336 1,279,864 Charges for services
2,175,048 1,950,957 7,475,742 4,659,301 2,388,683 Use of money and property
838,972 1,956,452 28,459 348,345 375,390 FInes and Forfeitures
3,059,254 2,803,681 1,441,075 1,042,568 1,534,628 Developer participation
575,001 580,843 992,282 289,047 1,196,057 Miscellaneous
53,490,028 53,311,984 56,394,634 56,135,658 66,606,492 Total Revenues
Expenditures
Current:
4,068,827 5,050,425 5,267,024 5,845,197 7,737,111 General government
21,189,086 21,664,472 22,125,962 23,377,755 22,508,088 Public safety
1,748,477 2,097,525 3,294,259 2,549,779 4,310,589 Planning and development
4,011,432 4,798,123 4,983,038 4,626,401 5,236,083 Community services
4,617,050 5,283,309 4,101,210 4,025,958 4,146,135 Public works
7,974,747 11,097,186 7,209,874 6,859,428 9,015,861 Capital projects
Debt service:
558,019 594,383 632,615 651,625 666,988 Principal retirement
411,010 348,334 346,137 307,600 1,460,371 Interest and fiscal charges
- - - - Payment to bond escrow
- - - - Payments under pass-through obligations
44,578,648 50,933,757 47,960,119 48,243,743 55,081,226 Total Expenditures
8,911,380 2,378,227 8,434,515 7,891,915 11,525,266
Other financing sources (uses):
- - - - Issuance of tax allocation bonds
- - - - Issuance of revenue bonds
4,201,763 12,037,331 6,420,538 21,503,514 7,432,340 Transfers in
(4,335,679) (12,322,714) (6,614,349) (21,904,814) (7,775,107) Transfers out
- - - - Other debts issued
- 9,000 - - Capital leases
- - - - Proceeds from sale of capital assets
(133,916) (276,383) (193,811) (401,300) (342,767) Total Other Financing Sources (Uses)
(6,402,450) - - 7,344,050 3,624,121 Extraordinary gain/loss on dissolution of RDA
2,375,014 2,101,844 8,240,704 14,834,665 14,806,620 Net Change in Fund Balances
2.6%2.2%2.4%2.45%3.26%
Debt Service as a Percentage of Noncapital
Expenditures (1)
Excess (Deficiency) of Revenues Over (Under)
Expenditures
139
This page left blank intentionally.
City of La Quinta TABLE 7
Tax Revenue by Source
Last Ten Fiscal Years
(in dollars)
Fiscal
Year
Property
Tax (2)
Tax
Increment (1)
Transient
Occupancy
Tax Sales Tax
Franchise
Tax
Business
License
Tax
Document
Transfer
Tax Total
2009 6,653,583$ 36,702,197$ 4,480,467$ 7,279,513$ 1,533,249$ 285,304$ 455,089$ 57,389,402$
2010 6,278,470 35,390,317 4,265,438 6,927,388 1,585,427 302,223 461,957 55,211,220
2011 5,942,353 32,569,795 4,737,968 7,323,835 1,607,829 285,270 437,235 52,904,285
2012 21,370,476 - 5,446,883 7,713,741 1,687,440 293,592 428,963 36,941,095
2013 7,043,604 - 5,980,684 7,833,545 1,669,476 292,966 518,778 23,339,053
2014 9,193,753 - 6,307,737 8,786,819 1,688,263 307,654 580,834 26,865,060
2015 8,776,491 - 6,637,183 8,873,008 1,861,453 306,087 530,336 26,984,558
2016 8,798,296 - 7,835,745 9,107,046 1,799,938 334,465 516,964 28,392,454
2017 15,521,335 - 9,433,970 10,060,305 1,815,491 365,451 585,333 37,781,885
2018 15,887,015 - 10,752,788 18,956,985 1,977,179 345,187 718,472 48,637,626
Notes:
(1)The tax increment received was a result of the activity of the Redevelopment Agency. On June 28, 2011, California Governor Jerry Brown
signed ABx1 26, the Redevelopment Dissolution Act. The Act was upheld by the California Supreme Court on Dec. 29, 2011, and theagency
was effectively dissolved Feb. 1, 2012.
(2) Starting in 2017, the revenue collected by the County that is remitted to the City for fire services was included in the property tax number.
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tax Revenue by Source
(Excluding Tax Increment)
(in millions)
Property Tax (2)Transient Occupancy Tax Sales Tax Franchise Tax Business License Tax Document Transfer Tax
140
City of La Quinta TABLE 8
Top 25 Sales Tax Producers
Current Year and Ten Years Ago
(in dollars)
Arco AM PM Service Stations
Bed Bath & Beyond Home Furnishings
Best Buy Electronics/Appliance Stores
Chevrolet Cadillac of La Quinta New Motor Vehicle Dealers
Circle K Service Stations
Cliffhouse Fine Dining
Costco Discount Dept Stores
Hobby Lobby Specialty Stores
Home Depot Building Materials
Hyundai of La Quinta New Motor Vehicle Dealers
Kia of La Quinta New Motor Vehicle Dealers
Kohls Department Stores
La Quinta Resort & Club Hotels-Liquor
Marshalls Family Apparel
Ross Family Apparel
Sams Club Discount Dept Stores
Stater Bros Grocery Stores
Stein Mart Department Stores
Target Discount Dept Stores
Thane Marketing Business Services
Tower Mart Service Stations Torre Nissan New Motor Vehicle Dealers
USA Gas Service Stations
Walmart Supercenter Discount Dept Stores
67.83%66.40%
Champion Cadillac Chevrolet
Circle K
Circuit City
Costco
G & M Oil
Fiscal Year 2008-09
Electronics/Appliance Stores
Arco
Bed Bath & Beyond
Best Buy
Service Stations
Home Furnishings
Business Name (1)
Home Depot
La Quinta Shell
Lowe's
Building Materials
Service Stations
Building Materials
New Motor Vehicle Dealers
Service Stations
Electronics/Appliance Stores
Discount Dept Stores
Service Stations
Percent of Fiscal Year Total Paid by Top 25 Accounts:Percent of Fiscal Year Total Paid by Top 25 Accounts:
Vons
Walmart Supercenter
Grocery Stores
Torre Nissan
Discount Dept Stores
Business Category
Stater Bros
Stein Mart
Stuft Pizza Bar and Grill
Target
TJ Maxx
In N Out Burgers
Kohls
La Quinta Resort & Club
Lowe's
Ross
Hyundai of La Quinta
New Motor Vehicle Dealers
Casual Dining
Discount Dept Stores
Family Apparel
Building Materials
Family Apparel
Grocery Stores
Department Stores
Marshalls
Fiscal Year 2017-18
Business CategoryBusiness Name (1)
New Motor Vehicle Dealers
Quick-Service Restaurants
Department Stores
Hotels-Liquor
Family Apparel
Notes:
(1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account.
Top 25 businesses listed for state Bradley-Burns sales tax allocation only. For busines listings for local Measure G, see next page. Sales tax revenue
chart includes total remitted for both.
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sales Tax Revenue
(in millions)
141
City of La Quinta TABLE 8
Top 25 Sales Tax Producers
Current Year and Ten Years Ago
(in dollars)
Amazon.com General Merchandise
Arco AM PM Service Stations
Bed Bath & Beyond Home Furnishings
Best Buy Electronics/Appliance Stores
Circle K Service Stations
Costco Discount Dept Stores
Dept. of Motor Vehicles Allocation Used Automotive Dealers
Desert European Motor Cars New Motor Vehicle Dealers
Fiesta Ford New Motor Vehicle Dealers
Home Depot Building Materials
Mathis Brothers Furniture Home Furnishings
Stater Bros Grocery Stores
Stein Mart Department Stores
Tower Mart Service Stations
50.48%
Calendar Year 2017 Fiscal Year 2008-09
Business Name (1)Business Category Business Name Business Category
Building Materials
Marshalls Family Apparel
I-10 Toyota New Motor Vehicle Dealers
Kohls Department Stores
La Quinta Resort & Club Hotels-Liquor
Percent of Calendar Year Total Paid by Top 25 Accounts:
Measure G was passed in November 2016 with implementation on
April 1, 2017. Ten-year is data not available.
Torre Nissan New Motor Vehicle Dealers
Verizon Wireless Electronics/Appliance Stores
Walmart Supercenter Discount Dept Stores
Target Discount Dept Stores
TJ Maxx Family Apparel
Ross Family Apparel
Lowe's
Notes:
(1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account.
Source:HDL, Coren & Cone
142
City of La Quinta
Taxable Sales by Category (1)
Last Ten Calendar Years
(in thousands)
2008 2009 2010 2011 2012
22,019$ 22,061$ 22,143$ 23,223$ 24,430$
226,032 209,394 206,153 211,249 220,970
27,865 26,196 25,351 25,197 25,854
83,310 80,172 79,646 86,433 94,859
74,604 59,747 60,740 62,879 65,445
70,645 33,576 43,566 58,938 62,668
54,413 39,127 46,059 54,342 56,001
111,210 99,779 94,532 97,477 99,028
154,186 120,668 120,291 132,417 130,421
824,284 690,720 698,481 752,155 779,676
Auto dealers and supplies
Service stations
Other retail stores
All other outlets
Total
Building materials
Calendar Year
Eating and drinking places
Apparel stores
General merchandise
Food stores
Notes:
(1)Due to confidentiality issues preventing the disclosure of the top ten largest sales tax payers by business name, this categorical list has been provided as an
alternative source of information regarding the City of La Quinta's sales tax revenue.
Source:HDL. Coren & Cone
Apparel stores
3%
General merchandise
27%
Food stores
3%
Eating and drinking places
10%
Building materials
9%
Auto dealers and supplies
9%
Service stations
7%
Other retail stores
13%
All other outlets
19%
Taxable Sales
Calendar Year 2008
143
TABLE 9
2013 2014 2015 2016 2017
25,741$ 25,461$ 25,115$ 26,280$ 31,822$
223,324 216,871 208,189 206,808 222,767
26,394 25,748 22,845 25,359 25,964
97,662 101,647 106,216 115,974 117,064 Eating and drinking places
68,606 73,087 75,658 78,299 83,383
72,839 84,826 87,440 83,010 81,264 Auto dealers and supplies
52,093 47,541 40,777 34,566 37,558
100,811 101,721 105,284 107,648 104,834
142,049 150,746 155,173 172,135 180,360
809,519 827,648 826,697 850,079 885,016 Total
Service stations
Other retail stores
All other outlets
Apparel stores
General merchandise
Food stores
Building materials
Apparel stores
4%
General merchandise
25%
Food stores
3%
Eating and drinking
places
13%
Building materials
10%
Auto dealers and
supplies
9%
Service stations
4%
Other retail stores
12%
All other outlets
20%
Taxable Sales
Calendar Year 2017
144
This page left blank intentionally.
CITY OF LA QUINTA TABLE 10
Assessed Value of Taxable Property
Last Ten Fiscal Years
(in dollars)
Fiscal Year Ended
June 30,Residential Commercial Agriculture
(4)Other (1)
Unsecured
Property (2)
Home Owner
Exemption(5)
Taxable
Assessed Value
Direct Rate
(3)
2009 10,034,763,263 827,032,029 20,432,889 1,475,352,236 112,389,346 (152,860,511) 12,469,969,763 1.0000
2010 9,483,530,068 823,821,531 20,845,624 1,358,176,147 120,977,122 (154,942,598) 11,807,350,492 1.0000
2011 8,870,471,785 771,419,124 20,792,716 1,143,332,514 118,651,054 (157,742,188) 10,924,667,193 1.0000
2012 8,612,579,049 725,788,432 20,944,939 920,025,235 104,880,163 (161,420,137) 10,384,217,818 1.0000
2013 8,510,574,371 735,622,855 19,644,835 954,074,172 106,176,279 (164,227,296) 10,326,092,512 1.0000
2014 8,959,562,854 743,340,208 20,374,889 945,004,639 108,387,013 (167,489,253) 10,776,669,603 1.0000
2015 10,116,938,804 1,061,204,501 65,769,114 77,926,274 106,672,900 (49,232,400) 11,379,279,193 1.0000
2016 10,634,834,332 1,088,406,355 64,533,443 79,120,572 113,142,376 (49,130,200) 11,930,906,878 1.0000
2017 11,071,273,174 1,195,736,674 57,463,638 71,281,946 110,768,767 (49,088,200) 12,457,435,999 1.0000
2018 11,462,635,317 1,227,709,957 59,538,912 61,350,883 105,984,928 (49,700,000) 12,867,519,997 1.0000
City of La Quinta, Tax District 02-2375
Notes:
(1)Other includes dry farm, government owned, institutional, irrigated, miscellaneous, recreational, vacant, cross reference and unknown. For 2016, prior years 2007
through 2015 were adjusted to match current reporting categories for consistency.
(2)Prior years 2007 through 2015 adjusted to match current reporting for consistency.(3)In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of theproperty being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With fewexceptions,property is only re-assessed at the time that it is sold to a new owner; at which time the new assessed value is the purchase price of the property sold. The assessedvaluation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitationsdescribed above.
(4)In 2016 (and going forward) data will be obtained from California Municipal and The Assessor Controller's Office. The existing column headers were slightly modified to
accommodate the property type classifications. The column labeld agriculture was formerly "industrial".
(5)Prior to 2015, this column also included Exempt Property Valuations
Source:: Cal Muni 2016/17 and 2017/18; County of Riverside Assessor Combined Tax Rolls Equalized Auditor and Assessor's Net
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Taxable Assessed Value
(in millions)
145
CITY OF LA QUINTA
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2009 (1)2010 (1)2011 (1)2012 (1)2013 (1)2014 (1)2015 (1)2016 (1)2017 (1)2018
Direct Rates:
City of La Quinta 0.0506 0.0506 0.0734 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760
Redevelopment agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Redevelopment agency Project Area 2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
County of Riverside 0.2586 0.2586 0.2318 0.1957 0.1958 0.1958 0.1958 0.1958 0.1958 0.1958
County Free Library 0.0284 0.0284 0.0280 0.0252 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253
County Structure Fire Protection 0.0610 0.0610 0.0602 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544
Coachella Valley Unified School District 0.0000 0.0000 0.0000 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322
Desert Sands Unified School 0.3765 0.3765 0.3716 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Desert Community College District 0.0782 0.0782 0.0772 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698
Riverside County Office of Education 0.0426 0.0426 0.0420 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380
Riverside County Regional Park & Open Sp 0.0000 0.0000 0.0000 0.0040 0.0039 0.0039 0.0039 0.0039 0.0040 0.0040
CV Public Cemetery 0.0035 0.0035 0.0035 0.0032 0.0031 0.0031 0.0031 0.0031 0.0031 0.0031
CV Mosquito & Vector Control 0.0142 0.0142 0.0141 0.0127 0.0127 0.0127 0.0127 0.0126 0.0126 0.0126
Desert Recreation District 0.0215 0.0215 0.0213 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192
Coachella Valley Water District 0.0284 0.0284 0.0281 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254
CV Resource Conservation 0.0004 0.0004 0.0004 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003
CVWD Improvement District 1 0.0000 0.0000 0.0131 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118
CVWD Storm Water Unit 0.0360 0.0360 0.0355 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321
Total Direct Rate (3)1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
Tax Rate Area 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-160 020-160 020-160
Coachella Valley Unified School District 0.0595 0.0725 0.0933 0.0749 0.0797 0.1492 0.1492 0.1322 0.1660 0.1761
Desert Sands Unified School 0.0799 0.0811 0.1004 0.1147 0.1116 0.1095 0.1098 0.1092 0.0860 0.0725
Coachella Valley Water District 0.0464 0.0660 0.0860 0.0800 0.0800 0.1000 0.1000 0.1000 0.1000 0.1000
Desert Community College District 0.0199 0.0200 0.0200 0.0200 0.0200 0.0200 0.0233 0.0209 0.0204 0.0403
Total Overlapping Rate 0.2057 0.2395 0.2996 0.2895 0.2912 0.3787 0.3823 0.3622 0.3724 0.3889
Total Direct and Overlapping Rate 1.2057 1.2395 1.2996 1.2895 1.2912 1.3787 1.3823 1.3622 1.3724 1.3889
Overlapping Rates (4) :
City Non-Project Area
Notes:
(1)Direct rate from Tax Rate Area (TRA) 020-160 and overlapping rates provided by Hdl Coren & Cone, data source Riverside County Assessor 2008/09- 2017/18 Annual
Tax Increment Tables.
(2)Direct rate taken from an analysis of the TRA in the project area and do not include State ERAF deductions and overlapping rates provided by California Municipal
Statistics
(3)In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This 1% is shared by all taxing agencies for
which the subject property resides within.
(4)Overlapping rates are based upon a single tax rate area only.
Source:County of Riverside Auditor Controller's Office; HDL, Coren & Cone
146
TABLE 11
2008 (2)2009 (2)2010 (2)2011 (2)2012 (2)2008 (2)2009 (2)2010 (2)2011 (2)2012 (2)
Direct Rates:
0.0000 0.0152 0.0036 0.0049 0.0524 0.0000 0.0000 0.0000 0.0019 0.0499 City of La Quinta
0.5150 0.5245 0.5432 0.5310 0.0000 0.0000 0.0000 0.0000 0.0000 Redevelopment agency Project Area 1
0.0000 0.0000 0.0000 0.0000 0.0000 0.2910 0.3193 0.3174 0.3059 0.0000 Redevelopment agency Project Area 2
0.2619 0.2325 0.2501 0.2471 0.2683 0.2617 0.2516 0.2537 0.2511 0.2553 County of Riverside
0.0276 0.0277 0.0276 0.0282 0.0294 0.0280 0.0280 0.0280 0.0286 0.0280 County Free Library
0.0595 0.0595 0.0595 0.0607 0.0633 0.0603 0.0603 0.0603 0.0616 0.0602 County Structure Fire Protection
0.0020 0.0149 0.0167 0.0182 0.0000 0.0020 0.0000 0.0000 0.0000 0.0000 Coachella Valley Unified School District
0.0140 0.0695 0.0568 0.0637 0.3905 0.1970 0.1860 0.1859 0.1930 0.3716 Desert Sands Unified School
0.0720 0.0177 0.0152 0.0166 0.0812 0.0410 0.0386 0.0386 0.0401 0.0772 Desert Community College District
0.0180 0.0093 0.0027 0.0038 0.0442 0.0220 0.0210 0.0210 0.0218 0.0420 Riverside County Office of Education
0.0030 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Riverside County Regional Park & Open Space
0.0000 0.0008 0.0002 0.0003 0.0037 0.0000 0.0000 0.0000 0.0001 0.0035 CV Public Cemetery
0.0120 0.0112 0.0111 0.0112 0.0148 0.0140 0.0141 0.0141 0.0141 0.0140 CV Mosquito & Vector Control
0.0010 0.0044 0.0014 0.0019 0.0223 0.0060 0.0053 0.0053 0.0059 0.0212 Desert Recreation District
0.0010 0.0127 0.0120 0.0124 0.0295 0.0760 0.0757 0.0757 0.0740 0.0281 Coachella Valley Water District
0.0130 0.0001 0.0000 0.0000 0.0004 0.0000 0.0000 0.0000 0.0000 0.0004 CV Resource Conservation
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0005 0.0131 CVWD Improvement District 1
0.0000 0.0000 0.0000 0.0000 0.0000 0.0010 0.0000 0.0000 0.0014 0.0355 CVWD Storm Water Unit
1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
Total Direct Rate (3)
020-089 020-089 020-089 020-089 020-089 020-144 020-144 020-144 020-144 020-144 Tax Rate Area
0.0571 0.0595 0.0725 0.0933 0.0749 0.0571 0.0595 0.0725 0.0933 0.0749 Coachella Valley Unified School District
0.0756 0.0799 0.0811 0.1004 0.1147 0.0756 0.0799 0.0811 0.1004 0.1147 Desert Sands Unified School
0.0507 0.0464 0.0660 0.0860 0.0800 0.0507 0.0464 0.0660 0.0860 0.0800 Coachella Valley Water District
0.0199 0.0199 0.0200 0.0200 0.0200 0.0199 0.0199 0.0200 0.0200 0.0200 Desert Community College District
0.2033 0.2057 0.2395 0.2996 0.2895 0.2033 0.2057 0.2395 0.2996 0.2895 Total Overlapping Rate
1.2033 1.2057 1.2395 1.2997 1.2895 1.2033 1.2057 1.2395 1.2996 1.2895 Total Direct and Overlapping Rate
Redevelopment Project Area 2Redevelopment Project Area 1
Overlapping Rates (4) :
147
CITY OF LA QUINTA TABLE 12
Principal Property Taxpayers
Current Year and Ten Years Ago
(in dollars)
Rank
Taxable
Assessed Value
(1)
Percent of
Total City
Taxable
Assessed
Value Rank
Taxable
Assessed Value
(1)
Percent of
Total City
Taxable
Assessed
Value
1 196,541,854$ 1.53% -
2 64,614,031 0.50% 2 123,545,144$
3 60,391,969 0.47% 6 41,623,109 0.33%
4 47,350,687 0.37% 9 32,260,312
5 34,369,793 0.27% -
Lennar Homes of California Inc 6 33,234,962 0.26%-
7 31,574,410 0.25% 3 63,848,760 0.51%
8 30,598,539 0.24% 4 50,062,387 0.40%
9 25,888,873 0.20%-
10 25,801,172 0.20%-
- - 1 351,987,688 2.82%
- - 5 42,929,365 0.34%
- - 7 40,240,602 0.32%
- - 10 33,809,065 0.26%
- - 8 32,130,633 0.27%
Total 550,366,290$ 4.28%812,437,065 5.27%
ND La Quinta Partners
Griffin Ranch
Toll California
Village Resort
Health Care REIT Inc
KSL Desert Resort
Aventine Development
Walmart Real Estate Business Trust
Taxpayer
Fiscal Year 2008-09
Town and Country Partners
Coral Option I LLC
TD Desert Development LP
Fiscal Year 2017-18
BRE Iconic LQR Owner
Inland American La Quinta Pavilion
East of Madison
(1) Taxable valuations include secured and unsecured
Source:
HdL Coren & Cone; Riverside County Assessor 2016/17 Combined Tax Rolls and the SBE Non-Unitary Tax RollP (Preliminary)
BRE Iconic LQR Owner
TD Desert
Development LP
Coral Option I LLC
Inland American La
Quinta Pavilion
Town and Country
Partners
Lennar Homes of
California Inc
East of Madison
Walmart Real Estate
Business Trust
Health Care REIT Inc
Principal Property Tax Payers
(FY 2016-17)
148
CITY OF LA QUINTA TABLE 13
Property Tax Levies and Collections
Last Ten Fiscal Years
(in dollars)
Fiscal Year
Ended June
30
Taxes Levied
for the Fiscal
Year (1)Amount
Percent of
Levy
Collections in
Subsequent
Years (2)Amount (3)
Percent of
Levy
2009 50,547,069 51,409,191 101.71%600,827 52,010,018 102.89%
2010 47,263,321 48,396,941 102.40%133,839 48,530,780 102.68%
2011 43,272,411 44,090,072 101.89%34,356 44,124,428 101.97%
2012 69,307,476 37,885,360 54.66%181,381 38,066,741 54.92%
2013 5,706,535 5,823,575 102.05%180,723 6,004,298 105.22%
2014 5,814,571 5,808,387 99.89%202,342 6,010,729 103.37%
2015 5,965,704 6,100,655 102.26%170,306 6,270,961 105.12%
2016 6,657,414 6,420,215 96.44%194,668 6,614,883 99.36%
2017 6,764,963 6,592,548 97.45%137,921 6,730,469 99.49%
2018 6,868,411 6,717,291 97.80%116,182 6,833,473 99.49%
Total Collections to Date
Collections within the Fiscal
Year of Levy
Notes:
(1)Taxes Levied. The total tax levy is based on the Statement of Original Charge from the Riverside County Auditor-
Controller Office. The amounts presented include City property taxes for tax districts 02-2374 and 02-2375 and are not
inclusive of the redevelopment increment values.
(2)Collections in Subsequent Years. The City participates in the Riverside County Teeter program; the secured taxes
are remitted in a series of advances and settlement payments, the last of which is not received by the City until October
of the subsequent year. Additionally, the City receives remittances for prior year throughout the subsequent year. As
these values are not known at the time of publishing, the number in this column will be adjusted on the 18-19 CAFR to
reflect all prior year collections received.
(3)Collections to Date. The total amount does not include any apportionment adjustments that are the result of
successful appeals of a taxpayer assessed valuation, escaped bills, refunds, or any other adjustments made by the
County Auditor-Controller. As such, the percentage of the levy collected may be higher or lower than expected.
Additionally, the increment values of the former Redevelopment Agency are allocated through a waterfall distribution
process in accordance with California Health and Safety Code 34183 and 34188, and are not reflected on the Statement
of Original Charge.
Source:County of Riverside Auditor Controller's Office
$0
$10
$20
$30
$40
$50
$60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Property Tax Collections
(in millions)
149
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type (1)
Last Ten Fiscal Years
(in dollars)
2009 2010 2011 2012 2013
178,311$ 128,311$ -$ -$ -$
149,169 114,583 78,253 40,090 71,045
751,754 741,171 729,480 - 702,105
1,556,283 1,530,958 1,503,433 - 1,441,096
Notes Payable- Eisenhower Drive Property - - - - -
2,874,653 2,072,965 1,255,243 - -
1,400,000 1,200,000 1,000,000 - -
343,814 174,584 - - -
133,390,000 130,255,000 126,925,000 - -
5,800,000 5,680,000 11,555,000 - -
84,560,000 82,890,000 81,150,000 - -
- - 28,850,000 - -
5,160,000 4,760,000 4,340,000 3,895,000 3,425,000
(804,944) (768,801) (1,115,799) - -
Total Governmental 235,359,040 228,778,771 256,270,610 3,935,090 5,639,246
Capital Leases 285,217 54,543 286,097 169,084 43,736
Total Business-Type Activities 285,217 54,543 286,097 169,084 43,736
Total Primary Government 235,644,257 228,833,314 256,556,707 4,104,174 5,682,982
Population - State Department of Finance January 1 43,778 44,421 37,836 38,075 38,401
Number of Households 21,355 23,489 23,489 23,528 23,612
Median Household Income 92,156 90,124 104,410 104,045 111,077
Percentage of Personal Income 11.97%10.81%10.46%0.17%0.22%
Debt Per Capita 5,383 5,151 6,781 108 148
Fiscal Year Ended
Governmental Activities:
Due to Coachella Valley Unified School District
Capital leases
City Hall Lease Revenue Bonds
Unamortized Discount and Issuance Costs
Reimbursement Agreement
Business-type Activities:
Due to County of Riverside
Developer Agreement
Tax Allocation Bonds Project Area 1
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds (2)
2011 Local Agency Revenue Bonds (2)
USDA Loan
Provident Savings Loan
Notes:
(1)Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(2)The debt service payment for the 2004 and 2011 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2 low & moderate
income tax increment.
Source:City of La Quinta; HDL, Coren & Cone
150
TABLE 14
2014 2015 2016 2017 2018
-$ -$ -$ -$ -$
129,063 103,869 155,395 530,163 667,035
686,345 668,933 649,698 628,448 -
1,405,755 1,367,344 1,325,596 1,280,221 -
- - - 2,250,000 1,125,000 Notes Payable- Eisenhower Drive Property
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
2,930,000 2,405,000 1,850,000 1,265,000 650,000
- - - - -
5,151,163 4,545,146 3,980,689 5,953,832 2,442,035 Total Governmental
- - - - - Capital Leases
- - - - - Total Business-Type Activities
5,151,163 4,545,146 3,980,689 5,953,832 2,442,035 Total Primary Government
39,032 39,694 39,977 40,677 41,204 Population - State Department of Finance January 1
23,871 24,150 24,432 24,544 24,643 Number of Households
109,365 97,526 99,157 104,749 107,447 Median Household Income
0.20%0.19%0.16%0.23%0.09% Percentage of Personal Income
132 115 100 146 59 Debt Per Capita
2011 Local Agency Revenue Bonds (2)
City Hall Lease Revenue Bonds
Governmental Activities:
Unamortized Discount and Issuance Costs
Business-type Activities:
Due to Coachella Valley Unified School District
Due to County of Riverside
Developer Agreement
Tax Allocation Bonds Project Area 1
Tax Allocation Bonds Project Area 2
2004 Local Agency Revenue Bonds (2)
Reimbursement Agreement
Capital leases
USDA Loan
Provident Savings Loan
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
5,383
5,151
6,781
108 148 132 115 100 146 59
Debt Per Capita
151
CITY OF LA QUINTA TABLE 15
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(in dollars)
Fiscal Year
Ended June
30,
City Hall
Lease
Obligation
Local Agency
Bonds
Tax
Allocation
Bonds Total
Percent of
Assessed
Value (2)
Per Median
Household
Income
2009 5,160,000 84,560,000 139,190,000 228,910,000 1.84% 2,484
2010 4,760,000 82,890,000 135,935,000 223,585,000 1.90% 2,481
2011 4,340,000 110,000,000 138,480,000 252,820,000 2.33% 2,421
2012 3,895,000 - - 3,895,000 0.04% 37
2013 3,425,000 - 2,250,000 5,675,000 0.03% 31
2014 2,930,000 - - 2,930,000 0.03% 27
2015 2,405,000 - - 2,405,000 0.02% 20
2016 1,850,000 - - 1,850,000 0.02% 45
2017 1,265,000 - - 1,265,000 0.01% 31
2018 650,000 - - 650,000 0.01% 6
Outstanding General Bonded Debt (1)
Notes:
(1)General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise
funds (of which, the City has none)
(2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Source:City of La Quinta
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1.84%
1.90%
2.33%
0.04%0.03%0.03%0.02%0.02%0.01%0.01%
General Bonded Debt as a Percent of Assessed Value
152
CITY OF LA QUINTA TABLE 16
Direct and Overlapping Debt
June 30, 2017
(in dollars)
Total Assessed Valuation (1)12,917,219,997$
Overlapping Debt (3)
16.68%314,935,000$ 52,524,859$
52.04%254,988,839 132,685,992
20.21%294,895,000 59,604,177
88.91%1,030,000 915,794
88.21%1,505,000 1,327,547
247,058,369
4.90%812,829,106 39,820,498
4.90%266,365,000 13,049,221
52.04%39,035,000 20,312,253
20.21%43,550,000 8,802,326
26.60%778,538 207,091
Total Overlapping General Fund Debt 82,191,389
Overlapping Tax Increment Debt
Successor Agencies 13.894- 100.00 %473,643,028 295,959,390
Total Overlapping Tax Increment Debt
Total Gross Overlapping Debt 625,209,148
Less: Riverside County Supported Obligations 164,278
Total Net Overlapping Debt 625,044,870
2,442,035$2,442,035
2,442,035
627,486,905$
DSUSD Community Facilities District No. 1
Total Net Combined Direct and Overlapping Debt
Coachella Valley Water District Assessment District No. 68
City of La Quinta General Fund Obligations
Desert Sands Unified School District COP
Desert Recreation and Park District COP
Estimated Share of
Overlapping Debt
Outstanding Debt
6/30/18
Percentage
Applicable (2)
Overlapping Tax and Assessment Debt
Desert Community College District
Coachella Valley Unified School District
Desert Sands Unified School District (DSUSD)
Total Overlapping Tax and Assessment Debt
Overlapping General Fund Debt
Riverside County General Fund Obligations
Riverside County Pension Obligations
Coachella Valley Unified School District Certificates of Participation (COP)
Direct General Fund Debt
Total Direct General Fund Debt
Notes:
(1) Total assessed valuation is from the Equalized Assessor report which includes homeowner exemptions.
(2)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 the overlapping district's taxable assessed value that is within the city's boundaries divided by the district's total
taxable assessed value.
(3)Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the
outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the
City's ability to issue and repay long-term debt, the entire debt burden borne 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.
153
CITY OF LA QUINTA
Legal Debt Margin Information
Last Ten Fiscal Years
(in dollars)
2009 2010 2011 2012 2013
Assessed valuation (1)12,416,034,763$ 11,753,185,892$ 10,870,790,733$ 10,331,431,958$ 10,274,998,112$
Debt limit percentage (2)15%15%15%15%15%
Debt limit 1,862,405,214 1,762,977,884 1,630,618,610 1,549,714,794 1,541,249,717
- - - - -
Legal debt margin 1,862,405,214$ 1,762,977,884$ 1,630,618,610$ 1,549,714,794$ 1,541,249,717$
0.0%0.0%0.0%0.0%0.0%
Total debt applicable to
the limit as a percentage
of debt limit
General obligation bonds (3)
Total net debt applicable to lim
Fiscal Year
Notes:
(1) Assessed Valuation is from the Equalized Auditor's Net report which excludes the homeowner exemptions
(2)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.
(3)The City of La Quinta has no general bonded indebtedness.
Source:Riverside County Auditor Controller
154
TABLE 17
2014 2015 2016 2017 2018
10,726,752,603$ 11,369,346,292$ 11,930,906,878$ 12,457,435,999$ 12,867,519,997$ Assessed valuation (1)
15%15%15%15%15%Debt limit percentage (2)
1,609,012,890 1,705,401,944 1,789,636,032 1,868,615,400 1,930,128,000 Debt limit
Total net debt applicable to lim
- - - - - General obligation bonds (3)
1,609,012,890$ 1,705,401,944$ 1,789,636,032$ 1,868,615,400$ 1,930,128,000$ Legal debt margin
0.0% 0.0% 0.0% 0.0% 0.0%
Total debt applicable to
the limit as a percentage
of debt limit
155
CITY OF LA QUINTA TABLE 18
Pledged-Revenue Coverage (1)
Last Ten Fiscal Years
(in dollars)
Principal Interest
2009 676,450 - 676,450 380,000 296,450 1.00
2010 675,280 - 675,280 400,000 275,280 1.00
2011 672,525 - 672,525 420,000 252,525 1.00
2012 673,521 - 673,521 445,000 228,521 1.00
2013 673,130 - 673,130 470,000 203,130 1.00
2014 671,351 - 671,351 495,000 176,351 1.00
2015 673,046 - 673,046 525,000 148,046 1.00
2016 673,075 - 673,075 555,000 118,076 1.00
2017 671,441 - 671,441 585,000 86,441 1.00
2018 668,141 - 668,141 615,000 53,141 1.00
.
Coverage
Ratio (3)
Local Agency Revenue Bonds (City Hall Project)
Lease
Revenue (2)
Debt ServiceLess Other
Debt
Payments
Net Lease
Revenue
Fiscal Year
Ended June
30,
Notes:
(1)Details regarding the city's outstanding debt can be found in the notes to the financial statements.
(2)Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee
Fund.
(3)Coverage ratio is a measure of the City's ability to meet its obligation. A ratio of greater than or equal to one
indicates that sufficient revenue has been generated to satisfy the debt service requirements. The ratio is
calculated as total available revenue (net lease revenue) divided by total debt service requirements (principal and
interest) .
156
CITY OF LA QUINTA TABLE 19
Demographic and Economic Statistics
Last Ten Calendar Years
Sources 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(3)35.31 35.31 35.31 35.16 35.16 35.16 35.71 35.71 35.71 35.71
(1)43,778 44,421 37,836 38,075 38,401 39,032 39,311 39,977 40,677 41,204
(5)$92,156 $90,124 $104,410 $104,045 $111,077 $109,365 $97,526 $99,157 $104,749 $107,447
(1)21,355 23,489 23,528 23,528 23,612 23,871 24,150 24,432 24,544 24,643
(1) 2.85 2.87 2.55 2.56 2.58 2.59 2.60 2.62 2.64 2.63
(4) $32,324 $31,457 $40,961 $40,722 $43,053 $42,226 $37,510 $37,486 $39,288 $39,999
(2) 14,800 14,600 14,400 15,100 15,300 15,600 17,300 17,800 18,100 19,000
(2) 13,700 13,500 13,300 14,100 14,400 14,900 16,600 17,200 17,500 18,000
(2) 7.43% 7.53% 7.64% 6.62% 5.88% 4.30% 4.50% 3.37% 3.31% 5.26%
(4) 36.4 42.2 41.5 42.8 43.6 44.8 45.1 45.3 45.7 46Median age(4)
Calendar Year
Mean Household Income (in dollars)(5)
Number of Dwelling Units(1)
Persons per Household(1)
Labor Force(2)
Per Capita Income(4)
Employment(2)
City Land (Sq Miles)
Population(1)(4)
Unemployment Rate
Sources:
(1) State of California Department of Finance; State of California, Department of Finance, E-1 and E-5 Population and Housing Estimates for Cities, Counties and
the State — January 1, 2017- 2018. Sacramento, California, released May 2018.
(2) State of California Employment Development Department Website
(3) Design and Development Department
(4) HDL, Coren & Cone
(5) Previously, calculated using "Persons per Household" mulitplied by "Per Capita Income". Starting in 2017, data is from the US Census Bureau American Fact Finder
21,355
23,489
23,528
23,528
23,612
23,871
24,150
24,432
24,544
24,643
17,000
19,500
22,000
24,500
27,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Number of Dwelling Units
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Unemployment Rate
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mean Household Income
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Per Capita Income and Unemployment
Per Capita Income Unemployment Rate
157
CITY OF LA QUINTA TABLE 20
Principal Employers
Current Year and Ten Years Ago
Activity
Number of
Employees
Percent of
Total
Employment Rank
Number of
Employees
Percent of
Total
Employment
Government 1 2,850 15.00%1 2,415 17.63%
Hotel & Golf Resort 2 1,437 7.56%2 1,210 8.83%
Retailer 3 379 1.99%3 463 3.38%
Retailer 4 222 1.17%5 190 1.39%
Retailer 5 210 1.11%7 157 1.15%
Retailer 6 150 0.79%9 125 0.91%
Retailer 7 140 0.74%8 140 1.02%
Utility Company 8 138 0.73%6 164 1.20%
Golf Resort 9 140 0.74%4 200 1.46%
Golf Resort 10 130 0.68%- -0.00%
Vons Grocery Store 11 101 0.53%- -0.00%
Fast Food Restaurant 12 81 0.43%10 120 0.88%
Total employment listed 5,978 31.46%5,184 37.84%
Total City Employment - July 1 19,000 13,700
Desert Sands Unified School District
Wal-Mart Super Center
La Quinta Resort & Club/ PGA West (1)
Fiscal Year 2008-09
Employer
Fiscal Year 2017-18
In N Out
Home Depot
Costco
Lowe's Home Improvement
Target
Rancho La Quinta
Traditions Golf Club
Imperial Irrigation District
Notes:
(1) La Quinta Resort & Club and PGA West are accounted for as one entity; as such, their employment numbers are reported together as of FY
2015-16.
Source: City of La Quinta, and infogroup.com
158
CITY OF LA QUINTA TABLE 21
Full-time City Employees
by Function
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 (1) 2015 2016 (2) 2017 2018
12.00 13.00 14.00 12.00 11.00 8.00 7.00 4.00 4.00 5.00
6.00 6.00 6.00 5.00 5.00 4.00 4.00 3.00 3.00 5.00
9.00 9.00 9.00 8.00 8.00 7.00 8.00 7.00 7.00 8.00
11.75 10.75 10.75 10.75 10.75 12.00 11.65 - - -
25.00 25.00 24.00 21.00 21.00 - - - - -
12.00 10.00 9.00 8.00 9.00 - - - - -
- - - - - 19.00 20.00 - - -
29.25 27.25 26.25 24.25 23.25 20.00 21.35 - - -
- - - - - - - 18.00 18.00 18.00
- - - - - - - 27.00 27.00 29.00
- - - - - - - 19.00 19.00 19.00
Total 105.00 101.00 99.00 89.00 88.00 70.00 72.00 78.00 78.00 84.00
Fiscal Year
Facilities (5)
Finance
Community Services
Design and Development (4)
Community Resources (3)
Planning and Development
Community Development
Public Works
Administration-City Mgr. Office
City Clerk
Function
Building and Safety
Notes:
The City of La Quinta contracts with the County of Riverside for Police Services and with the California Department of Forestry through a contract with the County of Riverside for Fire Services. In addition the City-owned Golf Course is operated by Landmark Golf. These positions have not been included as these positions are not City employees.
(1) The City merged the Building and Safety Department with the Planning and Development Department in 2014. The resultant department was referred to as Community
Development until 2016, see below.
(2) During FY 2015-'16 the City was subject to a major reorganization in an attempt to improve efficiency and controls that effectively terminated the Community Services,
Community Development, and Public Works departments. Following is a brief description of the reorganization for each department :
(3)The Community Resources department has taken over specific roles of the prior Community Development and Community Services departments including, but not
limited to human resources, police, fire,library, museum, recreation, marketing, code compliance, animal control, and emergency services.
(4)The Design and Development department has taken over specific roles of the prior Community Development, Public Works, and Finance departments including, but not
limited to customer service, business and animal licensing, planning, building, engineering services, and development services.
(5)The Facilities department has taken over specific roles of the prior Community Services and Public Works departments including,but not limited to , parks, streets,
buildings, lighting and landscaping.
Source:City of La Quinta
‐
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
110.00
2009 2010 2011 2012 2013 2014 (1) 2015 2016 (2) 2017 2018
105.00
101.00
99.00
89.00 88.00
70.00 72.00
78.00 78.00
84.00
Total Full‐Time City Employees
159
CITY OF LA QUINTA TABLE 22
Operating Indicators
by Function
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Finance:
Number of Animal Licenses Processed (1)1,609 1,768 1,619 1,674 1,505 1,602 1,374 - -
Number of Accounts Payable Checks Processe 4,819 4,393 4,530 3,766 3,576 3,696 3,833 4,153 3,835 3,621
Number of investment purchases 36 32 20 27 30 22 21 22 20 61
Par value of investments 229,969,000$ 267,213,000$ 189,810,285$ 188,782,874$ 164,614,769$ 136,323,300$ 128,990,447$ 137,594,669$ 139,613,063$ 150,117,079$
Number of cleared checks 5,269 4,984 4,912 5,103 3,899 3,922 4,004 4,167 3,932 3,813
Number of outgoing bank wires 91 75 87 63 58 58 54 41 44 64
City Clerk:
Contracts Processed - - - 319 346 289 238 282 199 243
Documents Notarized - - - 254 301 334 203 157 99 128
Documents Recorded with County - - - 170 125 183 106 112 56 67
Subpoenas and Claims Processed - - - 22 15 21 37 10 8 12
Records Requests Fulfilled and Recorded - - - 518 558 601 580 518 743 572
Documents Scanned to Electronic Archives (1)- - - 30,437 28,798 34,671 164,847 233,182 214,384 593,991
Public Works:
Encroachment permits issued 132 78 104 65 124 109 127 54 123 121
Request for services (1)1931 1306 746 534 740 1,322 1,261 3,440 3,207 2,652
Community Development:
Number of Active Business Licenses (1)3,523 3,428 3,183 3,310 3,520 3,998 4,452 3,368 3,681 3,707
Permits:
Single family Detached 129 56 85 39 83 147 176 108 92 142
Single family Attached 6 12 - 11 - - 4776
Residential Pool 207 152 148 127 162 204 255 217 170 211
Wall/Fence 299 178 218 149 167 220 328 257 209 268
Other 908 790 1,033 916 1,042 1,158 1,316 1,230 1,258 1,571
Garage Sale Permits (1)1,535 1,663 1,805 1,430 1,404 1,255 1,290 1,109 1,024 928
Total Permits 3,084 2,851 3,289 2,672 2,858 2,984 3,369 2,928 2,760 3,126
Code Compliance (1):
Animal Control Incidents Handled (1)3,630 3,984 4,392 4,246 3,206 1,645 1,085 - - -
Vehicle abatements 346 214 263 139 99 88 85 255 212 224
Weed abatements 97 125 143 106 1,404 43 45 57 114 128
Nuisance abatements/Property Maintenance 3,130 2,340 2,252 2,433 1,668 730 557 1,037 1,180 1,122
All Other (2)- - - - - - - 1,432 806 888
Community Services:
Library activities:
Volume 81,124 89,060 92,484 109,000 63,955 71,874 73,924 182,913 190,747 152,725
Books checked out 215,843 259,711 263,064 275,838 220,690 329,154 263,047 234,340 254,323 250,636
Cards Issued 3,684 3,547 3,822 4,477 2,966 2,035 2,418 2,179 2,248 2,276
Number of School Children Visiting 1,036 772 1,881 962 737 1,539 1,562 2,947 4,680 4,528
Volunteer Hours 2,342 2,723 4,280 2,720 2,226 1,340 1,917 2,169 2,248 2,314
Senior Center/Wellness Center (1) :
Number of visits 15,739 20,326 18,403 16,642 9,350 11,500 23,871 62,820 74,141 87,294
Volunteer Hours 2,583 3,131 3,099 2,690 2,233 2,745 1,279 1,585 1,420 1,333
Recreation activities:
Participants:
Leisure Classes 1,140 1,437 1,512 2,016 1,475 1,177 1,322 2,241 2,278 2,168
Special events 11,053 8,795 8,933 36,305 5,970 5,927 6,460 8,185 7,783 10,449
Adult Sports 10,806 13,364 13,092 5,647 3,865 5,878 5,487 7,192 6,695 6,136
Golf course:
Golf rounds played 40,941 43,779 45,269 46,949 46,352 43,610 41,904 45,104 43,085 42,590
Average Green fee 72.41$ 71.59$ 70.70$ 70.40$ 67.44$ 66.83$ 69.65$ 66.87$ 66.80$ 71.88$
Planning and Development:
Number of residential units approved 100 255 208 285 228 494 208 40 120 0
Commercial square footage approved 390,097 6,200 27,526 61,662 - 113,149 79,092 13,000 391,914 7,599
Fiscal Year
Notes:(1) Data on this table may vary from year to year due to restructuring, personnel, and systems changes that have taken place at the city over the past five years.
Examples include animal licensing and control contracted to County of Riverside May 2015, business licenses and garage sale permits transferred to Community
Development Department, tracking system for active business licenses updated, vacation rental requirements for permits changed, Codes Department began using
GoEnforce tracking software, Public Works Department expanded use of GoRequest system, City Clerk's office began project to archive all old documents and plans
electronically, and the Senior Center became the Wellness Center in 2015.
(2)"All Other" category includes building codes, business license, commercial, hazardous conditions, health/safety, other, parking, vacation rentals, and zoning. For 2016,
data was annualized using the seven months of actual "total closed incidents" provided by GoEnforce.
Source:City of La Quinta
160
CITY OF LA QUINTA TABLE 23
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Works:
127 127 127 128 128 128 128 128 128 128
22 22 22 22 22 22 34 34 35.5 35.5
261 265 265 269 269 277 277 281 372 372
49 50 50 51 52 54 54 54 54 54
2,899 2,909 2,919 2,934 2,984 3,018 3,018 3,018 5,758 5,758
12 12 12 12 12 13 13 13 13 13
Parks and Recreation:
Parks 13 13 13 13 13 13 13 13 13 13
209 218 218 218 218 218 218 218 218 218
40 40 40 40 40 40 40 40 40 40
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
Public Safety:
Fire Stations 3 3 3 3 3 3 3 3 3 3
Golf Course:
1 1 1 1 1 1 1 1 1 1 Municipal golf courses
Undeveloped Park Acreag
Park Acreage
Traffic signals
Traffic signs
Bridges
Streetlights (2)
Fiscal Year
Bikepaths (miles) (1)
Streets (miles)
Senior/Wellness Center
Museum
Library
Notes:
(1) Bike path miles were updated to include both Class I and Class II bicycle paths in 2015.
(2)In fiscal year ending 2009 street lights at intersections were included for the first time. Additionally, the decorative streetlights
in Old Town were added for the first time in 2017.
Source:City of La Quinta
161
CITY OF LA QUINTA TABLE 24
Schedule of Insurance in Force
30-Jun-18
Company Name Policy Number Coverage Limits Term Premium
Hartford 72FA0267254-17 Employee Dishonesty,$1 Million 12/03/17 - 12/03/18 $3,366
Forgery, Computer Fraud
Hartford 72FA0267254-16 Employee Dishonesty,$1 Million 12/03/16 - 12/03/17 $3,366
Forgery, Computer Fraud
CJPIA-Alliant B128410009W18 All Risk Property Insurance $25 Million 07/01/18 - 07/01/19 $84,997
Including Auto Physical Damage, Single Limit per Occurrence
Terrorism, Boiler & Machinery subject to other sublimits
(Excluding Earthquake)
CJPIA-Alliant B128410009W17 All Risk Property Insurance $25 Million 07/01/17 - 07/01/18 $86,073
Including Auto Physical Damage, Single Limit per Occurrence
Terrorism, Boiler & Machinery subject to other sublimits
(Excluding Earthquake)
Lloyds W14D19170401 Earthquake $10 Million 02/07/18 to 02/07/19 $98,700
Real & Personal Property
Including Contingent Tax Interruption
Lloyds W14D19170401 Earthquake/Flood $10 Million 02/07/17 to 02/07/18 $80,496
Real & Personal Property
Including Contingent Tax Interruption
California Self-Insured Comprehensive General $50 Million 07/01/18 - 07/01/19 $431,167
Joint Powers Pool Liability Single Limit per Occurrence
Insurance Authority
California Self-Insured Comprehensive General $50 Million 07/01/17 - 07/01/18 $448,537
Joint Powers Pool Liability Single Limit per Occurrence
Insurance Authority
California Self-Insured Worker's Compensation $10 Million 07/01/18 - 07/01/19 $123,562
Joint Powers Pool
Insurance Authority
California Self-Insured Worker's Compensation $10 Million 06/30/17 - 06/30/18 $220,848
Joint Powers Pool
Insurance Authority
Source:City of La Quinta
162