2019-2020 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)2019/20COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2020
City of La Quinta, California
Comprehensive Annual Financial Report
Year Ended June 30, 2020
City of La Quinta, California
Table of Contents
June 30, 2020
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................... i
List of Principal Officers .................................................................................................................................. vii
Organizational Chart ...................................................................................................................................... viii
Certificate of Achievement for Excellence in Financial Reporting (GFOA).......................................................... ix
FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................. 1
Management’s Discussion and Analysis ............................................................................................................... 5
Government Wide Financial Statements
Statement of Net Position .............................................................................................................................. 18
Statement of Activities ................................................................................................................................... 19
Government Fund Financial Statements
Balance Sheet – Governmental Funds ............................................................................................................ 21
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................... 22
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................... 23
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities ....................................................................................... 24
Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds .............................................................................................. 25
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ............................ 26
Statement of Cash Flows – Proprietary Funds ................................................................................................ 27
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position ............................................................................................................... 29
Statement of Changes in Fiduciary Net Position ............................................................................................. 30
Notes to Financial Statements ........................................................................................................................... 31
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund ........................................................................................... 74
Budgetary Comparison Schedule – Housing Authority .................................................................................... 75
Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan........................................ 76
Schedule of Pension Plan Contributions – Miscellaneous Plan ........................................................................ 77
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios ..................................................... 78
Schedule of OPEB Contributions .................................................................................................................... 79
Note to Required Supplementary Information ............................................................................................... 80
City of La Quinta, California
Table of Contents
June 30, 2020
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds .......................................................................... 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds ..................................................................................................................... 89
Budgetary Comparison Schedules – Special Revenue Funds
State Gas Tax ................................................................................................................................................. 94
Library and Museum ...................................................................................................................................... 95
Federal Assistance ......................................................................................................................................... 96
SLESA ............................................................................................................................................................. 97
Lighting and Landscaping ............................................................................................................................... 98
Quimby .......................................................................................................................................................... 99
Public Safety ................................................................................................................................................ 100
Art in Public Places ....................................................................................................................................... 101
South Coast Air Quality ................................................................................................................................ 102
AB 939 ......................................................................................................................................................... 103
Law Enforcement ......................................................................................................................................... 104
Measure A ................................................................................................................................................... 105
Economic Development ............................................................................................................................... 106
AB 1379 ....................................................................................................................................................... 107
Budgetary Comparison Schedules – Capital Projects Funds
Capital Improvement ................................................................................................................................... 108
Infrastructure .............................................................................................................................................. 109
Civic Center.................................................................................................................................................. 110
Transportation ............................................................................................................................................. 111
Parks and Recreation ................................................................................................................................... 112
Library Development ................................................................................................................................... 113
Community Center ....................................................................................................................................... 114
Street Facility ............................................................................................................................................... 115
Park Facility ................................................................................................................................................. 116
Fire Facility .................................................................................................................................................. 117
Budgetary Comparison Schedules – Debt Service Funds
Financing Authority ...................................................................................................................................... 118
Internal Service Funds
Combining Statement of Net Position .......................................................................................................... 120
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ......................................... 121
Combining Statement of Cash Flows ............................................................................................................ 122
City of La Quinta, California
Table of Contents
June 30, 2020
STATISTICAL SECTION
Net Position by Component (Table 1) ........................................................................................................... 124
Changes in Net Position (Table 2) ................................................................................................................. 126
Changes in Net Position – Governmental Activities (Table 3) ........................................................................ 128
Changes in Net Position – Business-type Activities (Table 4) ......................................................................... 130
Fund Balances of Governmental Funds (Table 5) .......................................................................................... 132
Changes in Fund Balances of Governmental Funds (Table 6) ........................................................................ 134
Tax Revenue by Source (Table 7) .................................................................................................................. 136
Top 25 Sales Tax Producers (Table 8) ........................................................................................................... 137
Taxable Sales by Category (Table 9) ............................................................................................................. 139
Assessed Value of Taxable Property (Table 10) ............................................................................................. 141
Direct and Overlapping Property Tax Rates (Table 11) .................................................................................. 142
Principal Property Taxpayers (Table 12) ....................................................................................................... 143
Property Tax Levies and Collections (Table 13) ............................................................................................. 144
Ratios of Outstanding Debt by Type (Table 14) ............................................................................................. 145
Ratio of General Bonded Debt Outstanding (Table 15) ................................................................................. 147
Direct and Overlapping Debt (Table 16) ....................................................................................................... 148
Legal Debt Margin Information (Table 17) .................................................................................................... 149
Pledged-Revenue Coverage (Table 18) ......................................................................................................... 151
Demographic and Economic Statistics (Table 19).......................................................................................... 152
Principal Employers (Table 20) ..................................................................................................................... 153
Full-time City Employees (Table 21) ............................................................................................................. 154
Operating Indicators (Table 22) .................................................................................................................... 155
Capital Asset Statistics by Function (Table 23) .............................................................................................. 156
Schedule of Insurance in Force (Table 24) .................................................................................................... 157
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December 23, 2020
To the Citizens of La Quinta, and the Honorable Mayor and Members of the City Council:
It is with great pleasure that we present to you the Comprehensive Annual Financial Report
(CAFR) of the City of La Quinta for the fiscal year ending June 30, 2020. The CAFR has been
prepared by the Finance Department for the benefit of City Council members, citizens,
investors, grantors, employees, and others who may have an interest in the financial well-
being of the City.
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 analysis is presented in the Management’s Discussion
and Analysis section (MD&A) that immediately follows the independent auditor’s report. The
MD&A provides an overview and analysis of the basic financial statements and complements
this transmittal.
Responsibility for both the accuracy and the completeness of all disclosures rests with the
City of La Quinta. 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) Statements; these pronouncements are the most authoritative source for
governmental GAAP.
Eide Bailly LLP, Certified Public Accountants, has issued an unmodified (“clean”) opinion on
the City’s financial statements for the year ended June 30, 2020. This is the most favorable
conclusion. The independent auditor’s report is located at the front of the financial section.
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.
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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 has a permanent population of
approximately 42,000, within a boundary of 36 square miles. Each year nearly 18,000
seasonal residents also call La Quinta home from October through May. The City sits at the
base of the Santa Rosa Mountains, is an integral part of the Coachella Valley’s world-
renowned resort and retirement area, and is known for its championship golf, stunning
views and spectacular trails.
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, serves a two-year term, and represents
the City at many public functions; 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 and also serve as the Board of Directors of the Housing and Finance Authorities.
The Council appoints the City Manager, who in turn appoints the Directors of the various
departments except for the City Attorney who is appointed by the Council. The Finance
Director also serves as the City/Housing Authority Treasurer and the City Manager is also
the Executive Director of the Housing Authority.
The City provides a range of services, which include street and infrastructure construction
and maintenance; community development and planning; affordable housing programs;
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’s annual operating and capital improvement budgets are adopted by resolutions
for the fiscal year that begins July 1st. Separate resolutions are adopted by the City Council
and Board of Directors of the Housing and Finance Authorities.
The annual budget is the foundation for the City’s financial planning and control. The budget
is prepared by fund, function, department, and line item. Department Directors may transfer
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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
According to the State of California Employment Development Department, as of October
2020, the unadjusted unemployment rate for La Quinta was 8.5%, which was lower than
unadjusted rates for Riverside County’s at 9.0% and the statewide average of 9.3%. Current
unemployment rates are greatly impacted by ongoing COVID-19 business restrictions,
particularly in the hospitality industry.
The City’s dominant industries are recreation, tourism, and retailers, with the following
being 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.
Throughout the year La Quinta hosts a variety of multi-generational open-air events and
shines in the national spotlight as the area’s only PGA golf tour event in the region with the
American Express Golf Tournament. The City also co-hosts Ironman 70.3 Indian Wells La
Quinta, which brings over 3,000 athletes and supporters from all over the world to the
Coachella Valley. The City’s cultural diversity, values, unique characteristics and attributes
are celebrated through artists who showcase their high-quality artwork at the annual fine
art celebration event, which is ranked number one in the United States by Art Fair
Sourcebook’s Top 100 Fine Art Events. In the Spring of 2020, the novel Coronavirus Disease
2019, known as COVID-19 resulted in mandatory stay at home orders, non-essential
business closures, reduced workforces, and record unemployment rates. To assist and
support local businesses the City established Small Business Economic Relief Programs
funded with $1,500,000 of Economic Disaster reserves and about $110,000 of Coronavirus
Aid, Relief, and Economic Security (CARES) Act funding. These programs have assisted local
businesses to mitigate the adverse economic impacts due to COVID-19.
Substantially or completed projects during 2019/20 included Floor and Décor and American
Tire Depot located on Highway 111, a new AT&T wireless tower facility in the Cove, on
Avenue 50 and Jefferson Street Codorniz single-family residential units were completed,
and the Washington Street Apartments remodel and expansion was substantially completed
on Washington Street and Hidden River Road.
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Long-term Financial Planning
Sound financial governance and prudent planning 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. La Quinta, like every other
municipality in the State, is faced with revenue reductions as a result of COVID-19, as well
as rising pension and public safety costs.
COVID-19 economic impacts are anticipated to diminish after a vaccine becomes widely
available, and new business modules with enhanced health and safety protocols are
deployed. La Quinta has addressed rising retiree costs by establishing and funding Other
Post Employment Benefit and Pension Trusts. In 2019/20, the City contributed an additional
$3,460,000 to the Pension Trust, which ended with a balance of slightly over $10.2 million.
The City also continues to collaborate with Riverside County and other regional cities on
police services to identify long-term savings.
The City ensures that its long-range goals are met through a variety of Boards and
Commissions. Each is comprised of Council-appointed residents, may include a City Council
representative, and are supported by City staff. In addition, the City has adopted various
financial policies and practices with the goal of sustaining a fiscally resilient government
over the long-term, assuring fiscal sustainability, as well as increasing transparency and
encouraging public engagement.
In 2019/20, the General Fund’s overall fund balance increased by almost $5.7 million when
compared to the ending balance in 2018/19. In addition to the Pension Trust contribution,
the City also added $1,540,000 to the Capital Replacement Reserve. In May 2018, the City
adopted a Reserve Policy and as of June 30, 2020 reserves are 84% funded with a combined
balance of $38.6 million; additional reserve funding is anticipated to be approved in
2020/21.
In June 2020 the City Council adopted a balanced budget without the use of reserves for
fiscal year 2020/21. The adopted budget had operating revenues exceeding expenses by
$9,200. The 2020/21 budget included sustained funding for essential services, such as
police, fire, and maintenance of critical infrastructure.
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);
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as such, the City receives a smaller share of property tax revenue but has also secured
additional property tax revenue from the County for fire and library services. In addition to
property taxes the City relies heavily on sales tax and transient occupancy (hotel) tax
revenue for General Fund income, both of which have seen reductions as a result of COVID-
19 economic impacts. The City continues to collaborate with regional partners to promote
and support the local hospitality and tourism industry.
The Future
The City has a mixture of housing and commercial developments under construction. Larger
residential developments underway include Griffin Ranch, Floresta, and the Residence Club
at PGA West and commercial developments include the California Desert Museum of Art,
luxury Montage and lifestyle Pendry hotels, two new Starbucks locations, and the first Dutch
Bros Coffee in the Coachella Valley. In early 2021, the City will complete the 14-acre
SilverRock Event Park which includes rolling hills, water features, meandering walkways,
and 360-degree breathtaking views.
Approved housing developments on the horizon include Canyon Ridge, SilverRock
residences, Centre at La Quinta condominiums, Estates Collection at Coral Mountain, and
the Andalusia Country Club. In addition, the City is expanding its affordable housing units
by purchasing the Dune Palms Mobile Home Park.
The Highway 111 Corridor Plan (Plan) continues to be a priority with daily traffic exceeding
40,000 vehicles, and accounting for nearly 80% of the City’s annual sales tax revenue. The
two mile-long, 400-acre regional commercial hub at the center of the City, is being
evaluated to create a more connected and walkable environment through the
implementation of form-based code (FBC). FBC is anticipated to reshape the corridor by
adding mixed-use and infill development and incorporating ever-evolving shopping trends.
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, 2019. This was the twenty-third consecutive year
that the City received this prestigious award. To be awarded a Certificate of Achievement,
the City had to publish an easily readable and efficiently organized CAFR.
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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 would like to express our appreciation to the City Council for their ongoing oversight of
the financial affairs of the City and their prudent fiscal, economic, and land use policy and
direction. We also thank City staff with special appreciation to the Finance Department for
their continued effort to provide accurate financial data and the preparation of this report.
Respectfully Submitted,
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City of La Quinta
List of Principal Officers
June 30, 2020
CITY COUNCIL
Linda Evans, Mayor
John Peña, Mayor Pro Tem
Kathleen Fitzpatrick, Council Member
Robert Radi, Council Member
Steve Sanchez, Council Member
ADMINISTRATION
Jon McMillen, City Manager
Karla Romero, Finance Director/ City Treasurer
Christopher Escobedo, Community Resources Director
Danny Castro, Design and Development Director
Bryan McKinney, Public Works Director/ City Engineer
Monika Radeva, City Clerk
William H. Ihrke, City Attorney
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Independent Auditor’s 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, 2020, 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.
Auditor’s 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.
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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, 2020, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, schedule of the City’s proportionate share of the net pension liability, schedule
of pension plan contributions, schedule of changes in the net OPEB liability/(asset) and related ratios,
schedule of OPEB contributions, budgetary comparison schedules for the General Fund and Housing
Authority special revenue fund and the related notes, as listed on the table of contents, 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 23,
2020, 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 the City’s 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 23, 2020
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MANAGEMENT DISCUSSION
AND ANALYSIS
(UNAUDITED)
This narrative provides an overview and analysis of the City of La Quinta’s (City)
financial activities for the fiscal year ending June 30, 2020. 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 thousand
dollars and dates are represented by fiscal year.
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HIGHLIGHTS
At the close of 2019/20 (June 30, 2020):
• The total assets and deferred outflows of the City exceeded its total
liabilities and deferred inflows at the close of the fiscal year 2019/20
by $741,056,000 (net position). Of this amount, $145,564,000
(unrestricted net position) may be used to meet ongoing obligations
and approximately $549,490,000 or 74% was invested in capital
assets and is not available to meet ongoing obligations.
• Governmental activities total net position decreased by $4,424,000
and the Business-Type total net position decreased by $757,000
which is attributable to the SilverRock Golf Course.
• Governmental funds (General Fund, Housing Authority, Capital
Improvement Fund, sixteen (16) Special Revenue Funds, nine (9)
capital projects funds, and the Finance Authority Fund) had a
combined ending fund balance of $164,163,000, an increase of
$3,641,000. The primary reasons for this increase are an
extraordinary gain of $868,000 derived from interest earned on the
outstanding Redevelopment Agency loan and a positive fair market
value adjustment to the overall investment portfolio of $2,846,000.
• The unassigned General Fund balance comprised $19,095,000, or
15%, of the total $123,334,000 balance and represented 26% of total
final General Fund budgeted expenses including transfers and multi-
year capital projects.
• Total governmental activities debt increased by $1,005,000 from
$14,104,000 to $15,108,000. This increase is largely attributed to an
increase of $1,055,000 in the City’s net pension liability. (Note 5)
OVERVIEW
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 m ay serve as a useful
indicator of whether the City’s financial position is improving or
deteriorating.
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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 f uture 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 publi c works;
business-type activities include the SilverRock Gol f 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 Autho rity. 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 use d to maintain control
over resources that have been segregated for specif ic activities or
objectives. The City, like other state and local g overnments, uses fund
accounting to ensure compliance with finance-relate d legal
requirements. All City’s funds are aggregated into three categories:
governmental funds, proprietary funds, and fiduciar y funds.
Government 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 governmen t-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 f iscal year. Such
information may be useful in evaluating a government's near-term
financing requirements.
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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 facili tate this comparison
between governmental funds and governmental activiti es.
The City maintains twenty-nine (29) 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 three (3) major
governmental funds: the General Fund, one special revenue fund, and
one capital project fund. Data from the other twent y-six (26)
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 demonstrat e 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 f inancial statements.
The City maintains one (1) enterprise fund to account for the SilverRock
Golf Course operations, which is considered a major fund.
Internal service funds are used to allocate costs am ong the City’s various
functions. The City has four (4) internal service funds: vehicles,
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 statements.
Individual fund data for the internal service funds is provided in the form
of combining statements on the Combining and Individual Fund
Statements.
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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 three fiduciary funds: 1) Agency Funds, 2) Defined
Contribution Pension Trust established to provide supplemental retirement
benefits, and (3) Successor Agency Private-Purpose Trust Fund which
provides for activities associated with the dissolution of the former
Redevelopment Agency.
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 Financial Statements.
Other Information
In addition to the 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.
9
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 $741,056,000 at the close of the 2019/20, which is $5,181,000
less than the previous year. Net investments in capital assets decreased by
$13,107,000 while restricted and unrestricted net positions increased by
$1,186,000 and $6,740,000 respectively.
The largest portion of the City’s Net Position ($549,490,000 or 74% for
2019/20 and $562,598,000 or 75% for 2018/19) 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.
City of La Quinta Net Position
An additional portion of the City's net position ($46,001,000 or 7% in 2020
and $44,815,000 or 6% in 2019) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of
unrestricted Net Position $145,564,000 (19%) may be used to meet the
government's ongoing obligations to citizens and creditors.
At the end of 2019/20, the City had positive balances in all three categories
of Net Position for the governmental and business-type activities.
Current and other
assets 217,716,936 219,549,201 0.008 795,460 242,326 (0.695) 218,512,396 219,791,527 0.006
Capital assets 519,979,940 509,777,422 (0.020) 43,375,536 39,712,955 (0.084) 563,355,476 549,490,377 (0.025)
Total Assets 737,696,876 729,326,623 (0.011) 44,170,996 39,955,281 (0.095) 781,867,872 769,281,904 (0.016)
Deferred outflows of
resources 3,545,374 3,426,624 (0.033) - - - 3,545,374 3,426,624 (0.033)
- - -
Current liabilities 23,450,113 18,385,081 (0.216) 555,335 375,426 (0.324) 24,005,448 18,760,507 (0.218)
Non-current liabilities 14,103,617 15,108,481 0.071 - - - 14,103,617 15,108,481 0.071
Total Liabilities 37,553,730 33,493,562 (0.108) 555,335 375,426 (0.324) 38,109,065 33,868,988 (0.111)
Deferred inflows of
resources 1,067,011 1,062,516 (0.004) - - - 1,067,011 1,062,516 (0.004)
Net Position:
Net investment in
capital assets 519,221,969 509,777,422 (0.018) 43,375,536 39,712,955 (0.084) 562,597,505 549,490,377 (0.023)
Restricted 44,815,499 46,001,248 0.026 - - - 44,815,499 46,001,248 0.026
Unrestricted 138,584,041 142,418,499 0.028 240,125 3,145,820 12.101 138,824,166 145,564,319 0.049
Total Net Position 702,621,509 698,197,169 (0.006) 43,615,661 42,858,775 (0.017) 746,237,170 741,055,944 -0.007
Total by Fiscal Year %
Change2019 2020
Governmental Activities Business-Type Activities%
Change
%
Change2019 2020 2019 2020
10
Governmental Activities
Governmental activities Net Position decreased by $4,424,000 accounting
for a negative 1% percent change in the Net Position from the previous
year. Key elements of these changes are as follows:
City of La Quinta Changes in Net Position
Governmental revenues overall increased by $3,214,000 with the largest
increase ($4,151,000) being capital gains and contributions followed by an
increase of $2,194,000 in operating grants and contributions; both
attributed to various construction projects. An increase of $1,010,000 in
miscellaneous revenues is largely attributed to interest earned from the
outstanding former Redevelopment Agency loan. These increases were
offset by decreases totaling $5,088,000 for other taxes and investment
income revenues combined. The greatest other taxes revenue reductions
were derived from sales taxes ($1,769,000) and transient occupancy taxes
($3,079,000), which were both impacted by COVID-19 restrictions during
the final four months of 2019/20.
PROGRAM REVENUES:
Charges for Services 3,128,405$ 3,584,923$ 456,518$ 3,773,396$ 2,746,748$ (1,026,648)$ 6,901,801$ 6,331,671$ (570,130)$
Operating Grants and
Contributions 5,623,509 7,817,482 2,193,973 - - - 5,623,509 7,817,482 2,193,973
Capital Gains and
Contributions 5,462,395 9,613,752 4,151,357 - - - 5,462,395 9,613,752 4,151,357
-
GENERAL REVENUES &
TRANSFERS -
Property Taxes 16,423,843 16,710,544 286,701 - - - 16,423,843 16,710,544 286,701
Other Taxes 35,300,950 30,253,291 (5,047,659) - - - 35,300,950 30,253,291 (5,047,659)
Investment Income 5,150,613 5,110,358 (40,255) 14,958 9,356 (5,602) 5,165,571 5,119,714 (45,857)
Motor Vehicle In Lieu 4,086,536 4,290,417 203,881 - - - 4,086,536 4,290,417 203,881
Miscellaneous 394,347 1,404,143 1,009,796 - - - 394,347 1,404,143 1,009,796
TOTAL REVENUES 75,570,598 78,784,910 3,214,312 3,788,354 2,756,104 (1,032,250) 79,358,952 81,541,014 2,182,062
EXPENSES:
General Government 9,085,863 9,877,251 791,388 - - - 9,085,863 9,877,251 791,388
Public Safety 23,164,976 24,009,725 844,749 - - - 23,164,976 24,009,725 844,749
Planning & Development 5,913,321 5,845,836 (67,485) - - - 5,913,321 5,845,836 (67,485)
Community Services 6,202,084 11,362,950 5,160,866 - - - 6,202,084 11,362,950 5,160,866
Public Works 4,430,519 32,248,031 27,817,512 - - - 4,430,519 32,248,031 27,817,512
Interest on Long-Term Debt 210,941 98,049 (112,892) - - - 210,941 98,049 (112,892)
Golf Course - - - 4,558,922 4,148,190 (410,732) 4,558,922 4,148,190 (410,732)
TOTAL EXPENSES 49,007,704 83,441,842 34,434,138 4,558,922 4,148,190 (410,732) 53,566,626 87,590,032 34,023,406
Excess or Deficiency
before Transfers &
Extraordinary Items 26,562,894 (4,656,932) (31,219,826) (770,568) (1,392,086) (621,518) 25,792,326 (6,049,018) (31,841,344)
TRANSFERS &
EXTRAORDINARY ITEMS:
Extraordinary Gain on
Dissolution of RDA 993,148 867,792 (125,356) - - - 993,148 867,792 (125,356)
Special Item - Interfund
Loans (5,553,561) - 5,553,561 5,553,561 - (5,553,561) - - -
Transfers (450,000) (635,200) (185,200) 450,000 635,200 185,200 - - -
Increase in Net Position 21,552,481 (4,424,340) (25,976,821) 5,232,993 (756,886) (5,989,879) 26,785,474 (5,181,226) (31,966,700)
Net Position - Beginning 681,069,027 702,621,509 21,552,482 38,382,668 43,615,661 5,232,993 719,451,695 746,237,170 26,785,475
NET POSITION - ENDING 702,621,508$ 698,197,169$ (4,424,339)$ 43,615,661$ 42,858,775$ (756,886)$ 746,237,169$ 741,055,944$ (5,181,225)$
Total by Fiscal YearBusiness-Type ActivitiesGovernmental Activities
2019 2020 2019 2020 2019 2020ChangeChange Change
11
• Expenses for Governmental Activities increased by $34,434,000
(a 70% increase when compared to 2018/19). The $27,818,000
increase in public works reflects multiple projects in construction
phase during 2019/20. As noted earlier Governmental Activities
include 29 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.
• The General Fund contributed $635,000 to the business-type
activities of the golf course. Funds were utilized to support operations
per the adjusted budget.
Business-Type Activities
This was the fifteenth full year of operations for the SilverRock Golf
Resort since the golf course opened in 2005.
Charges for services primarily consisted of green f ees which totaled
$2,747,000, which were $1,027,000 lower than the previous year, with
golf course expenses of $4,148,000, which were $411,000 or
approximately 9% less than the previous year. Reduced revenues were
a direct result of unanticipated COVID-19 golf cour se closures followed
by limited play during the final four months of the fiscal year. Expenses
were reduced where possible to offset reduced revenues, however, fixed
costs remained for equipment leases, maintaining the golf course, and
management contract services. In addition, expenses were incurred to
prepare for a safe reopening of the golf course under evolving pandemic
guidelines.
In 2019/20, the General Fund transferred $635,000 to the SilverRock Golf
Fund to support operations. After this transfer, the net position decreased
by $757,000.
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 inf ormation 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.
12
As of the end of 2019/20, the City's governmental funds reported combined
ending fund as follows:
City of La Quinta Governmental Fund Balances
Governmental fund balances ended the year totaling $164,163,000, an
increase of $3,641,000 in comparison with the prior years’ ending balance
of $160,522,000. These collective fund balances include the General Fund,
Housing Authority, Financing Authority, Capital Improvement Fund, and
various Special Revenue and Capital Improvement funds.
Nonspendable
Nonspendable reserves are $31,490,000 or 19%; these reserves are not
available to fund operating expenditures because they are in the form of
land and receivables.
Restricted
$56,251,000 (34%) 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; Section 115 trust restricted for Pension Liabilities;
or Housing Funds, restricted for housing activities to preserve and produce
affordable housing.
Committed
$30,119,000 (18%) are committed fund balances which are the result of
self-imposed limitations established by the City Council. The City adopted
a Reserve Policy in May 2018 which established General Fund committed
reserve categories including: Natural Disaster Reserve, Economic Disaster
Reserve, Cash Flow Reserve, and Capital Replacement Reserve.
Assigned
Assigned funds are constrained by the City’s intent to use them for specific
purposes and represent a total of $32,383,000 (20%) of the total fund
balance. $13,155,000 represents funds for approved Capital Projects
carryovers for multi-year projects. Available Measure G sales tax revenue
ended the year at $8,736,000 and $10,492,000 represents funds held in
trust with the County of Riverside for fire services.
Category General Fund Percent All Other Funds Percent Total Funds Percent
Nonspendable 31,487,459$ 26%2,875$ 0.007%31,490,334$ 19%
Restricted 10,249,738 8%46,001,248 113%56,250,986 34%
Committed 30,118,800 24%- 0%30,118,800 18%
Assigned 32,383,017 26%- 0%32,383,017 20%
Unassigned 19,094,651 15%(5,175,243) -13%13,919,408 8%
TOTAL 123,333,665$ 100%40,828,880$ 100%164,162,545$ 100%
13
Unassigned
The remaining fund balance or $13,919,000 represents unassigned fund
balances or the residual net resources after taking into consideration the
other classifications. The Capital Improvement Fund accounted for
$3,665,000 of the negative $5,175,000 balance of all other funds and is
reflective of larger expenses related to projects under construction and an
increase of reimbursements due from grants and interagency contributions.
The remaining negative balance was largely attributed to the Library
Development Impact Fee Fund. This amount represents an advance due to
the Redevelopment (RDA) Successor Agency and is included in the
Successor Agency of the former RDA as a receivable.
General Fund
The General Fund is the City’s chief operating fund. At the end of 2019/20,
the unassigned fund balance was $19,095,000 while total fund balance was
$123,334,000.
The General Fund balance increased by $5,696,000 in 2019/20. Key factors
were:
• A year-over-year decrease of $2,196,000 in non-spendable is
attributed the reclassification of City owned property held for resale
- $327,000, and the 2019/20 Redevelopment Agency loan repayment
of $2,540,000 and interest earnings of $694,000 resulted in a
decrease of $1,846,000 in Due from Other Governments. The
outstanding loan balance of $33,049,000 is recognized as 80% in the
General Fund and 20% in the Housing Authority Fund.
• Restricted reserves are limited to funds held in a Section 115 Pension
Trust set aside to fund the City’s pension obligations. The trust was
initially established in 2018/19 with $6,540,000 and in 2019/20 an
additional $3,460,000 was deposited. Coupled with investment gains,
resulted in an increase in total value to $3,710,000.
• Committed reserves decreased by $1,627,000. The increase of
$1,034,000 in operational carryovers and $1,540,000 in Capital
Replacement Reserves is reduced by a decrease of $4,200,000 from
the Economic Disaster Reserve to cover unanticipated COVID-19
revenue shortfalls ($2,700,000) and established Small Business
Economic Relief Programs ($1,500,000).
• An increase of $2,943,000 in assigned reserves was due to multi-
year Capital Projects ($1,302,000) and Measure G sales tax revenue
($1,014,000) and fire services trust ($627,000).
14
• 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 assistance (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, 2020 is
$10,492,000.
• Most General Fund revenues experienced positive variances when
compared to the final budget. Two categories representing the largest
variances included taxes and use of money and property. Taxes
represent 74% of all General Fund revenues and include the three
largest funding sources for the City – sales taxes $19,136,000,
property taxes $9,653,000, and transient occupancy taxes (TOT)
$7,603,000. Combined, these top three revenues account for
$36,393,000 or 84% of all taxes.
• The Intergovernmental revenue variance is a result of not drawing
down $1,047,000 from Fire Service Reserves and $509,000 is for a
pending County Service Area 152 Assessment reimbursement which
was billed but not received in 2019/20. This reimbursement will be
recognized in 2020/21.
• Miscellaneous and Transfers In revenue includes $694,000 to record
the annual former Redevelopment Agency loan repayment interest
earned in 2019/20. The loan repayments are structured to pay all
principal first, then interest. Each year the City records the payment
received and interest earned in accordance with the State
Department of Finance approved loan repayment schedule. Loan
repayments are not budgeted; these funds are recognized in
unassigned reserves and reduce non-spendable reserves each year.
80% of the extraordinary gain is recognized in the General Fund and
20% in the Housing Authority Fund.
• Actual expenses were $16,465,000 lower than the final budget of
which $14,934,000 was carried over into 2020/21 for continuing
appropriations related to operations and Capital Improvement Projects
(CIP). Funds not being carried over are recognized as Unassigned
Reserve Fund balance in the General Fund. CIP revenue
commitments are reflected in assigned reserves and operational
carryovers are noted in committed reserves.
• General Fund savings were derived from the judicious management of
contract and professional services, postponing non-critical repairs
and upgrades, and salary and benefits savings from vacant and
temporarily furloughed positions.
15
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 increased by $777,000 to end the year at $22,819,000.
Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures
for capital projects. The fund had forty-four (44) active Capital
Improvement Projects budgeted during 2019/20. The five most active
projects were:
• La Quinta Village Complete Streets ($7,436,000)
• SilverRock Event Site ($3,738,000)
• Citywide Drainage Enhancements ($2,360,000)
• Traffic Signal Interconnect Project ($1,792,000)
• Dune Palms Road Street Improvements ($1,164,000)
These projects, along with others, leveraged State or Federal grant funds
or were significantly supported with Measure G sales tax revenues.
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 decreased by $4,918,000 between
the original ($57,847,000) and final amended budget ($52,939,000). The
main components of the decrease were due to sales tax revenue and
transient occupancy taxes which decreased by $1,900,000 and $3,515,000
respectively.
16
Expenditure appropriations and transfers out increased by $16,332,000
between the original ($55,789,000) and final amended budget
($72,121,000). Following are the primary changes:
• $12,598,000 in operational and capital improvement project
carryover appropriations from prior fiscal years to 2019/20 as
approved by City Council.
• $3,640,000 was added as an additional contribution to the Pension
Trust from unassigned fund balance.
• $1,500,000 allocated to the Economic Development Fund from
Economic Disaster reserves for Small Business Economic Relief
Programs.
• As a result of COVID-19, to minimize the use of reserves due to
projected revenue shortfalls, expenses were also reduced by
$2,459,000.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its governmental and business-type activities
as of June 30, 2020, were $552,769,000 (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 $10,586,000 in 2019/20
primarily due to a reduction in construction in progress for completed
projects.
The following chart lists the asset categories for governmental and
business-like activities net of depreciation:
City of La Quinta Capital Assets (net of depreciati on)
Major capital asset events under Governmental Activities included the
following:
• Recording infrastructure improvements, street improvements, street
right of way, street sidewalks and curbs and gutters, traffic signals,
street medians, and construction in progress.
2019 2020 2019 2020 2019 2020
Land 66,571,934 66,810,841 39,712,955 39,712,955 106,284,889 106,523,796
Buildings & Improvements 39,212,401 37,098,256 3,342,277 3,127,733 42,554,678 40,225,989
Equipment & Furniture 1,178,546 1,590,589 320,304 151,187 1,498,850 1,741,776
Vehicles 828,376 715,710 - - 828,376 715,710
Software - - - - - -
Infrastructure 382,503,766 378,965,718 - - 382,503,766 378,965,718
Construction in Progress 29,684,917 24,596,308 - - 29,684,917 24,596,308
TOTAL 519,979,940 509,777,422 43,375,536 42,991,875 563,355,476 552,769,297
Governmental Activities Business-Type ActivitiesDescription Total By Fiscal Year
17
Business-Type Activities
The Golf Course capital asset balance at June 30, 2020, was $42,992,000,
net of accumulated depreciation. The balance decreased of $384,000
reflects accumulated depreciation expensed in 2019/20.
Additional information on the City of La Quinta’s capital assets can be found
in Note 4 to the financial statements.
Long-Term Debt
At the end of 2019/20, the City governmental funds had total outstanding
debt of $15,108,000, which is $1,005,000 greater than the previous year.
Of the total amount, $762,000 represents capital leases and $888,000
employee compensated absences. After 2018/19, the Net Pension Liability
is reported as an outstanding debt. The increase of $1,055,000 in the Net
Pension Liability is described in Note 8 and the obligation is not reduced by
the Pension Trust balance of $10,250,000 until funds are remitted to
CalPERS.
City of La Quinta Outstanding Debt
Additional information on long-term debt can be found in Note 5 of the
financial statements.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City’s
finances. Questions concerning this information or requests for additional
information should be addressed to the City of La Quinta, Karla Romero,
Finance Director/City Treasurer, 78-495 Calle Tampico, La Quinta, CA,
92253, by telephone at 760-777-7073, or by email at
finance@laquintaca.gov.
Debt Type: 2019 2020
Capital Leases 757,971$ 761,791$
Compensated Absences 941,955 888,491
Net Pension Liability 12,403,691 13,458,200
TOTAL 14,103,617$ 15,108,482$
Governmental Activities
See Notes to Financial Statements 18
City of La Quinta, California
Statement of Net Position
June 30, 2020
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 134,297,264$ 2,220$ 134,299,484$
Restricted cash and investments 10,249,738 - 10,249,738
Receivables
Accounts 458,191 - 458,191
Taxes 4,518,126 - 4,518,126
Notes and loans 22,782,114 - 22,782,114
Accrued interest 4,570,499 831 4,571,330
Prepaid costs 476,592 - 476,592
Deposits - 250,000 250,000
Due from other governments 36,629,432 - 36,629,432
Internal balances 116,541 (116,541) -
Inventories - 105,816 105,816
Land held for resale 5,403,652 - 5,403,652
Net OPEB asset 47,052 - 47,052
Capital assets not being depreciated 377,264,502 3,278,920 380,543,422
Capital assets, net of depreciation 132,512,920 36,434,035 168,946,955
Total assets 729,326,623 39,955,281 769,281,904
Deferred Outflows of Resources
Deferred amounts related to OPEB 177,251 - 177,251
Deferred amounts related to pensions 3,249,373 - 3,249,373
Total deferred outflows of resources 3,426,624 - 3,426,624
Liabilities
Accounts payable 7,377,796 338,316 7,716,112
Accrued liabilities 418,678 - 418,678
Unearned revenue 1,274,384 1,610 1,275,994
Deposits payable 7,730,304 35,500 7,765,804
Due to other governments 1,583,919 - 1,583,919
Noncurrent liabilities
Due within one year 516,041 - 516,041
Due in more than one year 14,592,440 - 14,592,440
Total liabilities 33,493,562 375,426 33,868,988
Deferred Inflows of Resources
Deferred amounts related to OPEB 47,430 - 47,430
Deferred amounts related to pensions 1,015,086 - 1,015,086
Total deferred inflows of resources 1,062,516 - 1,062,516
Net Position
Net investment in capital assets 509,777,422 39,712,955 549,490,377
Restricted for
Planning and development projects 23,680,641 - 23,680,641
Public safety 1,607,101 - 1,607,101
Public works 3,208,072 - 3,208,072
Capital projects 3,128,962 - 3,128,962
Community services 14,376,472 - 14,376,472
Unrestricted 142,418,499 3,145,820 145,564,319
Total net position 698,197,169$ 42,858,775$ 741,055,944$
Primary Government
See Notes to Financial Statements 19
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2020
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary Government:
General government 9,877,251$ 615,348$ 20,519$ 3,341,932$
Public safety 24,009,725 367,277 - 155,948
Planning and development 5,845,836 799,040 114,102 1,632,293
Community services 11,362,950 366,896 5,785,752 -
Public works 32,248,031 1,436,362 1,897,109 4,483,579
Interest on long-term debt 98,049 - - -
Total governmental activities 83,441,842 3,584,923 7,817,482 9,613,752
Business-Type Activities:
Golf Course 4,148,190 2,746,748 - -
Total primary government 87,590,032$ 6,331,671$ 7,817,482$ 9,613,752$
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, Special Items, Extraordinary
Items and Transfers
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
Program Revenues
See Notes to Financial Statements 20
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2020
Governmental Business-Type
Activities Activities Total
(5,899,452)$ -$ (5,899,452)$
(23,486,500) - (23,486,500)
(3,300,400) - (3,300,400)
(5,210,302) - (5,210,302)
(24,430,981) - (24,430,981)
(98,049) - (98,049)
(62,425,685) - (62,425,685)
- (1,401,442) (1,401,442)
(62,425,685) (1,401,442) (63,827,127)
16,710,544 - 16,710,544
8,079,394 - 8,079,394
19,136,015 - 19,136,015
1,996,593 - 1,996,593
378,744 - 378,744
662,545 - 662,545
4,290,417 - 4,290,417
5,110,358 9,356 5,119,714
1,404,143 - 1,404,143
867,792 - 867,792
(635,200) 635,200 -
58,001,345 644,556 58,645,901
(4,424,340) (756,886) (5,181,226)
702,621,509 43,615,661 746,237,170
698,197,169$ 42,858,775$ 741,055,944$
Primary Government
Net (Expense) Revenue and Changes in Net Position
See Notes to Financial Statements 21
City of La Quinta, California
Balance Sheet – Governmental Funds
June 30, 2020
Special Capital Projects
Revenue Fund Fund Other Total
Housing Capital Governmental Governmental
General Authority Improvement Funds Funds
Assets
Pooled cash and investments 88,983,142$ 14,431,521$ 337,720$ 22,282,936$ 126,035,319$
Restricted cash and investments 10,249,738 - - - 10,249,738
Receivables
Accounts 446,982 11,209 - - 458,191
Taxes 4,070,353 - - 447,773 4,518,126
Notes and loans - 22,782,114 - - 22,782,114
Accrued interest 124,565 4,397,460 - 35,363 4,557,388
Prepaid costs 14,065 - 552 2,875 17,492
Deposits - - - - -
Due from other governments 26,364,601 6,517,436 2,846,760 900,635 36,629,432
Due from other funds 122,828 - - - 122,828
Land held for resale 5,403,652 - - - 5,403,652
Total assets 135,779,926$ 48,139,740$ 3,185,032$ 23,669,582$ 210,774,280$
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable 3,761,849$ 184,552$ 2,767,774$ 446,990$ 7,161,165$
Accrued liabilities 381,498 12,934 - 22,874 417,306
Unearned revenues 39,101 - 1,235,283 - 1,274,384
Deposits payable 7,706,108 24,196 - - 7,730,304
Due to other governments 78,732 - - 1,505,187 1,583,919
Due to other funds - - - 6,287 6,287
Total liabilities 11,967,288 221,682 4,003,057 1,981,338 18,173,365
Deferred Inflows of Resources
Unavailable revenue 478,973 25,099,463 2,846,760 13,174 28,438,370
Fund Balances
Nonspendable
Prepaid costs 14,065 - - 2,875 16,940
Land held for resale 5,403,652 - - - 5,403,652
Due from other governments 26,069,742 - - - 26,069,742
Restricted for
Planning and development projects - 22,818,595 - 862,046 23,680,641
Public safety - - - 1,607,101 1,607,101
Community services - - - 14,376,472 14,376,472
Public works - - - 3,208,072 3,208,072
Capital projects - - - 3,128,962 3,128,962
Section 115 trust 10,249,738 - - - 10,249,738
Committed to
Natural Disaster Reserve 10,000,000 - - - 10,000,000
Economic Downturn Reserve 6,800,000 - - - 6,800,000
Cash Flow Reserve 5,000,000 - - - 5,000,000
Capital Replacement Reserve 6,540,000 - - - 6,540,000
Carryovers 1,778,800 - - - 1,778,800
Assigned for
Public safety 10,491,654 - - - 10,491,654
Sales Tax Reserve 8,736,219 - - - 8,736,219
Capital projects 13,155,144 - - - 13,155,144
Unassigned 19,094,651 - (3,664,785) (1,510,458) 13,919,408
Total fund balance 123,333,665 22,818,595 (3,664,785) 21,675,070 164,162,545
Total liabilities, deferred inflows of
resources and fund balances 135,779,926$ 48,139,740$ 3,185,032$ 23,669,582$ 210,774,280$
See Notes to Financial Statements 22
City of La Quinta, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2020
Amounts reported for governmental activities in the statement of net position are different because:
Fund balances of governmental funds 164,162,545$
Capital assets net of accumulated depreciation have not been
not been included as current financial resources
in governmental fund activity 495,386,956
Net OPEB asset is not considered a current financial resource 47,052
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the governmental funds
Capital lease payable (65,939)$
Compensated absences (888,491)
Net pension liability (13,458,200) (14,412,630)
Deferred outflows related to pensions 3,249,373
Deferred outflows related to OPEB 177,251
Deferred inflows related to pensions (1,015,086)
Deferred inflows related to OPEB (47,430)
Revenues reported as unavailable revenue in the governmental
funds are recognized in the statement of activities.28,438,370
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 22,210,768
Net Position of Governmental Activities 698,197,169$
See Notes to Financial Statements 23
City of La Quinta, California
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2020
Special Capital Projects
Revenue Fund Fund Other Total
Housing Capital Governmental Governmental
General Authority Improvements Funds Funds
Revenues
Taxes 43,286,632$ -$ -$ 1,594,406$ 44,881,038$
Assessments - - - 957,017 957,017
Licenses and permits 1,913,519 - - - 1,913,519
Intergovernmental 7,079,739 - 5,292,544 4,735,312 17,107,595
Charges for services 1,179,592 - - - 1,179,592
Use of money and property 3,305,351 1,064,288 - 849,449 5,219,088
Fines and forfeitures 370,391 - - - 370,391
Contributions from other agencies - - 294,802 - 294,802
Developer participation - - 176,199 1,687,388 1,863,587
Miscellaneous 544,703 505,482 273,583 47,327 1,371,095
Total revenues 57,679,927 1,569,770 6,037,128 9,870,899 75,157,724
Expenditures
Current
General government 7,731,395 - - 1,100 7,732,495
Public safety 23,911,695 - - 98,030 24,009,725
Planning and development 3,235,430 615,052 819,011 766,788 5,436,281
Community services 3,908,895 350,778 - 1,900,034 6,159,707
Public works 1,765,112 - - 3,656,494 5,421,606
Capital outlay 1,196,946 - 21,850,721 102,844 23,150,511
Debt service
Interest and fiscal charges - - - 28,868 28,868
Total expenditures 41,749,473 965,830 22,669,732 6,554,158 71,939,193
Excess (Deficiency) of Revenues
over (under) Expenditures 15,930,454 603,940 (16,632,604) 3,316,741 3,218,531
Other Financing Sources (Uses)
Transfers in - - 13,347,741 3,119,668 16,467,409
Transfers out (10,928,870) - - (5,984,101) (16,912,971)
Total other financing
sources (uses)(10,928,870) - 13,347,741 (2,864,433) (445,562)
Extraordinary Item
Successor Agency loan 694,234 173,558 - - 867,792
Net Changes in Fund Balances 5,695,818 777,498 (3,284,863) 452,308 3,640,761
Fund Balances, Beginning of Year 117,637,847 22,041,097 (379,922) 21,222,762 160,521,784
Fund Balances, End of Year 123,333,665$ 22,818,595$ (3,664,785)$ 21,675,070$ 164,162,545$
See Notes to Financial Statements 24
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
Year Ended June 30, 2020
Amounts reported for governmental activities in the statement of activities are different because:
Net changes in fund balances - total governmental funds 3,640,761$
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.(10,014,053)
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.
Capital lease activity 22,820
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.53,464
Governmental funds report OPEB contributions as expenditures.
However, in the Statement of Activities, OPEB expense is measured
as the change in OPEB liability and the amortization of deferred
outflows and inflows of resources related to OPEB. This amount
represents the net change in OPEB related amounts.1,222
Governmental funds report pension contributions as expenditures.
However, in the Statement of Activities, pension expense is measured
as the change in pension liability and the amortization of deferred
outflows and inflows of resources related to pension. This amount
represents the net change in pension related amounts.(1,128,950)
Revenues reported as unavailable revenue in the governmental
funds are recognized as operating contributions and grants
in the statement of activities.2,984,879
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 governmental activities.15,517
Change in net position of governmental activities (4,424,340)$
See Notes to Financial Statements 25
City of La Quinta, California
Statement of Net Position – Proprietary Funds
June 30, 2020
Business-Type Governmental
Activities Activities
Enterprise Funds Internal Service
Golf Course Funds
Assets
Current
Pooled cash and investments 2,220$ 8,261,945$
Receivables
Accrued interest 831 13,111
Prepaid costs - 459,100
Deposits 250,000 -
Inventories 105,816 -
Total current assets 358,867 8,734,156
Noncurrent
Capital assets not being depreciated 39,712,955 8,311,605
Capital assets, net of depreciation 3,278,920 6,078,861
Total noncurrent assets 42,991,875 14,390,466
Total assets 43,350,742 23,124,622
Liabilities
Current
Accounts payable 338,316 216,631
Accrued liabilities - 1,372
Deposits payable 35,500 -
Due to other funds 116,541 -
Unearned revenues 1,610 -
Current portion of capital leases - 235,127
Total current liabilities 491,967 453,130
Noncurrent Liabilities
Long-term portion of capital leases - 460,724
Total liabilities 491,967 913,854
Net Position
Net investment in capital assets 39,712,955 13,694,615
Unrestricted 3,145,820 8,516,153
Total net position 42,858,775$ 22,210,768$
See Notes to Financial Statements 26
City of La Quinta, California
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
Year Ended June 30, 2020
Business-Type Governmental
Activities Activities -
Enterprise Funds Internal
Golf Course Service Funds
Operating Revenues
Sales and service charges 2,746,748$ 3,525,005$
Operating Expenses
Administration and general 59,518 405,357
Fuel and oil - 73,751
Maintenance and parts - 238,115
Contract services 3,618,424 755,489
Software and supplies - 1,329,126
Depreciation expense 383,662 1,091,138
Other 86,586 -
Total operating expenses 4,148,190 3,892,976
Operating Loss (1,401,442) (367,971)
Nonoperating Revenues (Expenses)
Interest revenue 9,356 312,611
Miscellaneous revenues - 329,696
Interest expense - (69,181)
Total nonoperating revenues (expenses)9,356 573,126
Income (Loss) Before Transfers (1,392,086) 205,155
Transfers in 635,200 100,000
Transfers out - (289,638)
Total transfers 635,200 (189,638)
Changes in Net Position (756,886) 15,517
Net Position, Beginning of the Year 43,615,661 22,195,251
Net Position at End of Year 42,858,775$ 22,210,768$
See Notes to Financial Statements 27
City of La Quinta, California
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2020
Business-Type Governmental
Activities-Activities-
Enterprise Funds Internal
Golf Course Service Funds
Operating Activities
Cash received from customers and users 2,817,726$ -$
Cash received from interfund services provided - 3,525,005
Cash payments to suppliers for goods and services (3,814,639) (2,671,562)
Cash payments to employees for services (19,994) (1,286)
Net Cash from (used for) Operating Activities (1,016,907) 852,157
Non-Capital Financing Activities
Cash transfers out - (289,638)
Cash transfers in 635,200 100,000
Net Cash from (used for) Non-Capital Financing Activities 635,200 (189,638)
Capital and Related Financing Activities
Capital contributions - 327,339
Acquisition and construction of capital assets - (876,035)
Interest paid on capital debt - (69,181)
Net Cash used for Capital and Related Financing Activities - (617,877)
Investing activities
Interest received on investments 9,731 323,824
Net Increase (Decrease) in Cash and Cash Equivalents (371,976) 368,466
Cash and Cash Equivalents at Beginning of Year 374,196 7,893,479
Cash and Cash Equivalents at End of Year 2,220$ 8,261,945$
See Notes to Financial Statements 28
City of La Quinta, California
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2020
Business-Type Governmental
Activities-Activities-
Enterprise Funds Internal
Golf Course Service Funds
Reconciliation of Operating (Loss) to Net Cash
used for Operating Activities:
Operating (loss)(1,401,442)$ (367,971)$
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities:
Depreciation 383,662 1,091,138
Changes in
Accounts receivable 69,368 -
Inventories (5,127) -
Prepaid costs - 381,602
Accounts payable (161,525) 133,440
Accrued liabilities (18,384) (613)
Due to other funds 116,541 (385,439)
Net Cash from (used for) Operating Activities (1,016,907)$ 852,157$
Non-Cash Transactions
Capital assets acquired by capital lease -$ 116,966$
See Notes to Financial Statements 29
City of La Quinta, California
Statement of Fiduciary Net Position
June 30, 2020
Pension Trust Private-Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan former RDA
Assets
Pooled cash and investments 102,703$ 36,960,884$
Receivables
Notes and loans - 1,011,005
Accrued interest 163 93,392
Prepaid asset - 475,174
Due from other governments - 1,505,187
Restricted assets
Cash and investments with fiscal agent - 5,362
Total assets 102,866$ 40,051,004$
Deferred Outflows of Resources
Deferred charge on refunding - 9,715,975
Total deferred outflows of resources - 9,715,975
Liabilities
Accrued interest - 2,828,049
Long-term liabilities
Due in one year - 12,298,833
Due in more than one year - 207,015,579
Total liabilities - 222,142,461
Net Position (Deficit)
Restricted for pensions 102,866$
Held in trust (172,375,482)$
See Notes to Financial Statements 30
City of La Quinta, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2020
Pension Trust Private-Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan Former RDA
Additions
Taxes -$ 20,732,863$
Net investment income 8,778 812,355
Total additions 8,778 21,545,218
Deductions
Administrative expenses 12,833 44,464
Contractual services - 670,781
Interest and fiscal charges - 8,417,062
Total deductions 12,833 9,132,307
Extraordinary Item
Successor Agency loan principal - (867,792)
Changes in Net Position (4,055) 11,545,119
Net Position/(Deficit) - Beginning of the Year 106,921 (183,920,601)
Net Position/(Deficit) - End of the Year 102,866$ (172,375,482)$
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31
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Note 1 - Summary of Significant Accounting Policies
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. The activities of the Financing Authority are recorded in the debt service fund. Separate financial
statements of the Financing Authority are not prepared.
32
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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. The activities of the Housing Authority are recorded in the Housing Authority Special
Revenue Fund. Separate financial statements of the Housing Authority are not prepared.
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.
33
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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.
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.
The government-wide financial statements are reported using the economic resources measurement focus basis
of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred
regardless of the related cash flows. Property taxes are recognized in the year they are levied. Grants and similar
items are recognized as soon as all eligibility requirements imposed by the providers are met.
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.
34
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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.
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.
35
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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.
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.
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:
Special Revenue Funds – These funds account for the proceeds of specific revenue sources that are restricted or
committed to expenditures for specified purposes other than debt service or capital projects.
Capital Projects Funds – These funds account for financial resources that are restricted, committed, or assigned
to expenditures for capital outlay.
Debt Service Fund – This fund accounts for the servicing of long-term debt.
36
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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 and operated park equipment and facilities. 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.
Fiduciary Funds:
Agency Fund – This fund accounts for assets held by the City as an agent for assessment district bondholders.
This fund was closed in the current year.
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 Redevelopment
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.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows 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.
The City pools cash and investments of all funds, except for assets held within the Section 115 trust and amounts
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 month end cash and investment balance.
37
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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.
Restricted Section 115 Trust Cash and Investments
All assets in the Section 115 Trust are irrevocably dedicated to funding obligations of the City’s pension
beneficiaries, other post-employment beneficiaries or costs of administering the Trust. The funds are not
considered plan assets of either the pension plan or OPEB plan and are therefore considered restricted assets of
the City.
Inventory
Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption method of
accounting for inventories.
Prepaid Costs
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.
38
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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
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 other post-employment benefits of $3,249,373
and $177,251 respectively. The Private Purpose Trust Fund- Successor Agency of the former RDA recorded
deferred outflows of resources related to debt refundings.
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 and
OPEB of $1,015,086 and $47,430, respectively.
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.
39
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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.
Fund Balance
In the fund financial statements, governmental funds report the following fund balance classifications:
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.
40
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Fund Balance Flow Assumptions – governmental fund financial statements
Sometimes the City 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 – government-wide and proprietary fund financial statements
Sometimes the City 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.
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.
New Accounting Pronouncements
Adopted in the Current Year
GASB Statement No. 95 – In May 2020, the GASB issued Statement No. 95, Postponement of the Effective Dates
of Certain Authoritative Guidance. The objective of this statement is to provide temporary relief to governments
and other stakeholders in light of the COVID-19 pandemic. The objective is accomplished by postponing the
effective dates of certain provisions in Statements and Implementation Guides that first became effective or are
scheduled to become effective for periods beginning after June 30, 2018, and later. The effective dates of
certain provisions contained in the following pronouncements are postponed by one year: Statement No. 83,
No. 84, No. 88, No. 89, No. 90, No. 91, No. 92, and No. 93.
41
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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. 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, 2019.
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
June 15, 2021.
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, 2020.
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, 2019.
GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The
objective of this statement is to better meet the information needs of financial statement users by enhancing
the comparability and consistency of conduit debt obligation reporting and reporting of related transactions and
other events by state and local government issuers. This statement is also intended to improve the relevance,
reliability, and understandability of information about conduit debt obligations, as well as related transactions
and other events. The Statement is effective for reporting periods beginning after December 15, 2021.
GASB Statement No. 92 – In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of
this statement are to enhance comparability in accounting and financial reporting and to improve consistency of
authoritative literature by addressing practice issues that have been identified during implementation of certain
GASB Statements. This statement addresses a variety of topics including specific provisions about GASB
Statements No. 87, No. 74, No. 84 and other topics. The Statement has various effective dates beginning June
15, 2020.
42
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
GASB Statement No. 93 – In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered
Rates. The objective of this statement is to address those and other accounting and financial reporting
implications that result from the replacement of an Interbank Offered Rate (IBOR). The Statement is effective for
reporting periods beginning after June 15, 2020.
GASB Statement No. 94 – In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public
Partnerships and Availability Payment Arrangements. The objective of this statement is to improve financial
reporting by addressing issued related to public-private and public-public partnership arrangements. The
Statement is effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 96 – In May 2020, the GASB issued Statement No. 96, Subscription-Based Information
Technology Arrangements. The statements provide guidance on the accounting and financial reporting for
subscription-based information technology arrangements for government end users. The Statement is effective
for reporting periods beginning after June 15, 2022.
GASB Statement No. 97 – In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans- An
Amendment of GASB Statements No. 14 and No. 84, and a Suppression of GASB Statement No. 32. The primary
objective of the statement is to 1) increase consistency and comparability related to the reporting of fiduciary
component units in circumstances in which a potential component unit does not have a governing board and the
primary government performs the duties that a governing board typically would perform; 2) mitigate costs
associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans,
and employee benefit plans other than pension plans or OPEB plans as fiduciary component units in fiduciary
fund financial statements; and 3) enhance the relevance, consistency, and comparability of the accounting and
financial reporting for Internal Revenue Code Section 457 deferred compensation plans that meet the definition
of a pension plan and for benefits provided through those plans. The Statement is effective for reporting periods
beginning after June 15, 2021.
Note 2 - Cash and Investments
Cash and investments as of June 30, 2020, are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments 134,299,484$
Restricted cash and investments 10,249,738
Statement of Fiduciary Net Position
Cash and investments 37,063,587
Cash and investments with fiscal agent 5,362
Total cash and investments 181,618,171$
43
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Cash and investment as of June 30, 2020, consist of the following:
Cash on hand 3,300$
Deposits with financial institutions 8,978,494
Investments 172,636,377
Total cash and investments 181,618,171$
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
Maturity Allowed in One Issuer
U.S. Treasury Obligations 5 years N/A N/A
U.S. Agency Securities 5 years N/A 20 million
Local Agency Bonds 5 years N/A N/A
California Local Agency Obligations 5 years N/A N/A
Commercial Paper 270 days 25%10% of any outstanding issue
Certificates of Deposit 5 years 30%250,000
Negotiable Certificates of Deposits 5 years 30%250,000
Corporate Notes 5 years 30%5 million
Investment Pools (Riverside County Pool)N/A N/A N/A
Money Market Mutual Funds N/A 20%10% of City funds
Local Agency Investment Fund (LAIF)N/A N/A LAIF Limit
Investment Agreements 92 days 20%N/A
Investment Types
Investments Authorized by the City Section 115 Trust
Investments of the Trust are governed by the provisions of the City of La Quinta Section 115 Trust Agreement,
rather than the general provisions of the California Government Code or the City’s investment policy.
Investments authorized for funds held in the Section 115 Trust include Equity and Fixed Income Mutual Funds.
The strategic range allowed for Equity and Fixed Income Mutual Funds is 5%-20% and 60%-95%, respectively.
There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity
of an investments.
44
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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
Total Or Less 1 to 3 years 3 to 5 years
Certificates of Deposit 35,725,057$ 3,932,746$ 14,561,679$ 17,230,632$
Federal agency securities
Federal Farm Credit Bank 8,542,400 - 2,562,310 5,980,090
Federal National Mortgage Association 1,552,710 - 1,024,840 527,870
Federal Home Loan Mortgage Corp 2,001,160 - - 2,001,160
Federal Home Loan Bank 2,342,506 1,002,770 - 1,339,736
U.S. Treasury Notes 11,191,010 6,554,150 3,062,585 1,574,275
Corporate Notes 2,487,469 - 2,068,805 418,664
Local Agency Investment Fund 85,631,064 85,631,064 - -
CAMP 2,850,712 2,850,712 - -
Riverside County Pool 10,491,654 10,491,654 - -
Section 115 Trust
Equity Mutual Funds 2,998,202 2,998,202 - -
Fixed Income Mutual Funds 6,817,071 6,817,071 - -
Held by Fiscal Agent
Money Market Mutual Funds 5,362 5,362 - -
Total 172,636,377$ 120,283,731$ 23,280,219$ 29,072,427$
Remaining Maturity (in Years)
Investment Type
45
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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:
Total AAA AA+AA AA-
Federal Agency Securities 14,438,776$ -$ 14,438,776$ -$ -$
Corporate Notes 2,487,469 418,665 507,340 523,965 1,037,500
Total 16,926,245 418,665$ 14,946,116$ 523,965$ 1,037,500$
Exempt from Credit Risk disclosure:
U.S. Treasury Notes 11,191,010
Not rated:
Certificates of Deposit 35,725,057
Local Agency Investment Pool 85,631,064
CAMP 2,850,712
Riverside County Pool 10,491,654
Section 115 Trust:
Equity Mutual Funds 2,998,202
Fixed Income Mutual Funds 6,817,071
Held by Fiscal Agent:
Money Market Mutual Funds 5,362
Total investments 172,636,377$
Investment Type
Concentration of Credit Risk
Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows:
Reported Percent of
Investment Type Amount Portfolio
Federal Farm Credit Bank Federal Agency Securities 8,542,400$ 5%
Issuer
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
46
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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, or by letters of credit issued by the Federal Home Loan Bank
of San Francisco having a value of 105 percent of the secured public deposits.
As a public funds depository Wells Fargo and Bank of the West 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.
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. The Riverside County Pooled Investment Fund is not registered
with the Securities and Exchange Commission and is not rated.
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 Treasure r 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 $1 an d not
fair value. Accordingly, the City’s measurement of fair value of its investment with LAIF is based on
uncategorized inputs, not defined as a level 1, level 2, or level 3 input. LAIF is not registered with the Securities
and Exchange Commission and is not rated.
Investment in California Asset Management Program
The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the
California Government Code Section 53601 (p) and ma naged by a Board of Trustees comprised of finance
directors and treasurers of California public agencies that are members of the Joint Powers Authority. The City’s
investment in this pool is reported in the accompanying financial statements of net position and prepared using
the accrual basis of accounting. Investments are reported at fair value. The balance available for withdrawal is
based on the accounting records maintained by CAMP. CAMP is not registered with the Securities and Exchange
Commission and is not rated.
47
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2
are valued using the market approach and quoted market prices.
The City has the following recurring fair value measurements as of June 30, 2020:
Total Level 1 Level 2
Investments
U.S. Treasury Notes 11,191,010$ 11,191,010$ -$
Federal Agency Securities 14,438,776 - 14,438,776
Corporate Notes 2,487,469 - 2,487,469
Certificates of Deposit 35,725,057 - 35,725,057
Section 115 Trust
Equity Mutual Funds 2,998,202 2,998,202 -
Fixed Income Mutual Funds 6,817,071 6,817,071 -
Total leveled investments 73,657,585 11,191,010$ 52,651,302$
Investments with uncategorized inputs
Local Agency Investment Fund 85,631,064
CAMP 2,850,712
Riverside County Pool 10,491,654
Held by Fiscal Agent
Money Market Mutual Funds 5,362
Total investments 172,636,377$
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. As of June 30, 2020, the
outstanding principal balance is $2,035,387 and the outstanding interest is $3,010,159.
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.
48
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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, 2020, the outstanding principal balance is $20,724,559 and the outstanding interest balance is
$1,364,746.
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 $22,168 at June 30, 2020.
Note 4 - Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2020, is as follows:
Balance at Balance at
July 1, 2019 Additions Deletions Transfers June 30, 2020
Governmental activities
Capital assets, not being depreciated
Land 66,571,934$ 327,339$ 88,432$ -$ 66,810,841
Right of way 285,857,353 - - - 285,857,353
Construction-in-progress 29,684,917 22,130,680 11,579,486 (15,639,803) 24,596,308
Total capital assets,
not being depreciated 382,114,204 22,458,019 11,667,918 (15,639,803) 377,264,502
Capital assets, being depreciated
Buildings and improvements 73,598,659 98,155 12,382,179 13,186,733 74,501,368
Equipment and furniture 3,469,065 876,395 93,818 - 4,251,642
Vehicles 1,678,796 92,915 64,297 - 1,707,414
Infrastructure 225,158,968 279,121 - 2,453,070 227,891,159
Total capital assets,
being depreciated 303,905,488 1,346,586 12,540,294 15,639,803 308,351,583
Less accumulated depreciation for
Buildings and improvements 34,386,258 3,042,414 25,560 - 37,403,112
Equipment and furniture 2,290,519 464,352 93,818 - 2,661,053
Vehicles 850,420 190,721 49,437 - 991,704
Infrastructure 128,512,555 6,270,239 - - 134,782,794
Total accumulated depreciation 166,039,752 9,967,726 168,815 - 175,838,663
Total capital assets,
being depreciated, net 137,865,736 (8,621,140) 12,371,479 15,639,803 132,512,920
Governmental activities
capital assets, net 519,979,940$ 13,836,879$ 24,039,397$ -$ 509,777,422
49
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Depreciation expense was charged to the following functions in the Statement of Activities:
General governments 375,147$
Planning & development 24,629
Community services 1,363,131
Public works 7,087,184
Internal service funds 1,117,635
9,967,726$
Capital asset activity for business-type activities for the year ended June 30, 2020, is as follows:
Balance at Balance at
July 1, 2019 Additions Deletions June 30, 2020
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 1,905,540 - 283,817 1,621,723
Software 20,255 - - 20,255
Total capital assets,
being depreciated 8,562,260 - 283,817 8,278,443
Less accumulated depreciation for
Buildings and improvements 3,294,188 214,544 - 3,508,732
Equipment and furniture 1,585,236 169,117 283,817 1,470,536
Software 20,255 - - 20,255
Total accumulated
depreciation 4,899,679 383,661 283,817 4,999,523
Total capital assets,
being depreciated, net 3,662,581 (383,661) - 3,278,920
Business-type activities
capital assets, net 43,375,536$ (383,661)$ -$ 42,991,875
Depreciation expense was charged to the following functions in the Statement of Activities:
Golf Course 383,661$
50
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Note 5 - Changes in Long-Term Liabilities – Governmental Activities
Changes in Long-Term Liabilities
The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended
June 30, 2020:
Balance at Balance Due within
July 1, 2019 Additions Deletions June 30, 2020 One year
Governmental Activities
Compensated absences payable 941,955$ 888,491$ 941,955$ 888,491$ 256,199$
Copier lease payable 88,759 - 22,821 65,938 24,715
Dell computer lease 638 - 638 - -
Fleet vehicle lease 668,574 28,175 163,575 533,174 167,446
Public works building lease - 68,160 23,087 45,073 34,080
Intelesysone phone system - 168,007 50,402 117,605 33,601
Net pension liability 12,403,691 1,054,509 - 13,458,200 -
14,103,617$ 2,207,342$ 1,202,478$ 15,108,481$ 516,041$
Compensated absences and the net pension liability have been typically liquidated from the General Fund. A
description of the City’s Net Pension Liability is detailed at Note 8.
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.
On July 1, 2018, the City leased additional copiers for $85,428 maturing in monthly increments of $1,794, with
interest payable monthly at 9.5 percent.
51
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
The minimum future lease obligations and the net present value of the lease payments as of June 30, 2020, are
as follows:
Total
2021 29,688$
2022 22,208
2023 21,527
2024 1,794
Total Payments 75,217
Less amount representing interest (9,278)
Outstanding Principal 65,939$
Year Ending June 30,
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 lease term was completed and paid off as of June 30, 2020.
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. Pool vehicles are also included in the replacement program and are
utilized by multiple departments. In fiscal year 2016-17, 16 vehicles were replaced with five-year leases ranging
from $22,453 to $35,578. In fiscal year 2017-18, 11 vehicles were replaced with five-year leases ranging from
$26,926 to $42,233.
In fiscal year 2018-19, an additional six vehicles were replaced with five-year leases ranging from $22,460 to
$35,103 for a total of 33 vehicles. In fiscal year 2019-20, one additional vehicle was replaced with a five-year
lease for $28,172. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has
been recorded at the present value of the future minimum lease payment at the inception date. The minimum
future lease obligations and the net present value of the lease payments as of June 30, 2020, are as follows:
Total
2021 167,446$
2022 225,189
2023 115,394
2024 25,145
Outstanding Principal 533,174$
Year Ending June 30,
52
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Public Works Building Lease
In September of 2019, the City entered into a two year lease agreement with Pacific Mobile Structures for a new
public works trailer while the Corporate Yard improvements are underway. As this time the Public Works
maintenance trailer was 32 years old and had exceeded its useful life. The minimum future lease obligations and
the net present value of the lease payments as of June 30, 2020 are as follows:
Total
2021 34,080$
2022 10,993
Outstanding Principal 45,073$
Year Ending June 30,
Intelesysone Phone System
In January 2019, the City entered into a five year lease agreement with Inteleysone for a new phone system to
replace the City’s unified communications and VoIP phone systems, which was installed in 2007, and was at the
end of its support lifecycle, and its hardware was no longer supported. The minimum future lease obligations
and the net present value of the lease payments as of June 30, 2020 are as follows:
Total
2021 33,601$
2022 33,601
2023 33,601
2024 16,802
Outstanding Principal 117,605$
Year Ending June 30,
Note 6 - Interfund Receivables and Payables
The composition of current interfund receivable and payable balances is as follows:
Enterprise Fund Non-Major
Due from Other Funds Golf Course Governmental Total
General Fund 116,541$ 6,287$ 122,828$
Due to Other Funds
Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2020.
53
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Note 7 - Interfund Transfers
Non-Major Internal
Transfers In General Fund Governmental Service Fund Total
Capital Improvements Fund 7,074,002$ 5,984,101$ 289,638$ 13,347,741$
Non-major Governmental Funds 3,119,668 - - 3,119,668
Internal Service Funds 100,000 - - 100,000
Golf Course Fund 635,200 - - 635,200
Total 10,928,870$ 5,984,101$ 289,638$ 17,202,609$
Transfer Out
a. $7,074,022 was transferred from the General Fund to the Capital Improvement Fund to fund various
capital projects.
b. $5,984,101 was transferred to the Capital Improvement Fund from various non-major funds to
support operations and expenses within the City.
c. $289,638 was transferred to the Capital Improvement Fund from the Internal Service Funds to support
various capital projects and preventative maintenance.
d. $3,119,668 was transferred from the General Fund to various non-major funds to support various
administrative operations and expenses within the City.
e. $100,000 was transferred from the General Fund to the Information Technology Internal Service Fund
to augment the fiscal year 19-20 budget and avoid using fund balance. Additional resources were used
to implement software upgrades and augment security measures as identified during a vulnerability
assessment.
f. $635,200 was transferred from the General Fund to the Golf Course Fund to subsidize operations.
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.
54
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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, 2020 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%6.75%
Required employer contribution rates 11.432%8.081%6.985%
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 $1,479,137 for the year ended
June 30, 2020.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
55
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
As of June 30, 2020, the City reported a liability of $13,458,200 for its proportionate share of the collective net
pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018.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, 2018 and 2019
is as follows:
Proportion- June 30, 2018 0.12872 %
Proportion- June 30, 2019 0.13134 %
Change- Increase (Decrease)0.00262 %
For the year ended June 30, 2020, the City recognized pension expense of $2,608,087.
At June 30, 2020, the City reported deferred outflows and deferred inflows of resources related to pensions as
follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,479,137$ -$
Changes in assumptions 641,749 227,495
Differences between expected and actual experience 934,729 72,423
Net difference between projected and actual earnings on
pension plan investments - 235,291
Change in employer's proportion 193,758 64,142
Difference between the city's contribution and
proportionate share of contributions - 415,735
Total 3,249,373$ 1,015,086$
The $1,479,137 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2021.
Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
2021 821,273$
2022 (214,524)
2023 100,855
2024 47,546
Total 755,150$
Year Ended June 30,
56
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2019 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2018 total pension liability. The total pension liability in the June 30,
2018 actuarial valuation was determined using the following actuarial methods and assumptions:
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Actuarial Cost Method Entry-Age Normal Cost Method
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 3.00%
Projected Salary Increase Varies by Entry Age and Service
Investment Rate of Return 7.15%
Mortality Rate Table Derived using CalPERS' Membership Data for all Fund
Miscellaneous
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:
57
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Strategic Real Return Real Return
Allocation Years 1 - 10 Years 11+
Global Equity 50.00%4.80%5.98%
Fixed Income 28.00%1.00%2.62%
Inflation Assets 0.00%0.77%1.81%
Private Equity 8.00%6.30%7.23%
Real Estate 13.00%3.75%4.93%
Liquidity 1.00%0.00%-0.92%
Total 100%
Asset Class
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 Current Discount
Rate - 1%Discount Rate Rate +1%
(6.15%)(7.15%)(8.15%)
Net Pension Liability 20,386,011$ 13,458,200$ 7,739,782$
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 Plan
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, 2020, there was one plan member.
There are no required contributions by plan members. During the 2019-2020 fiscal year the City made no
contributions to fund the Supplemental Pension Savings Plan.
58
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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’ $136/month for the calendar year 2019 and $139/month for calendar year 2020,
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.
The City participates in the 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.
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.
Employees Covered by Benefit Terms
At June 30, 2018, the most recent valuation date, the following current and former employees were covered by
the benefit terms of the plan:
Active employees 91
Inactive employees or beneficiaries currently receiving benefits 19
Total 110
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, 2020, the City made no contributions to the CERBT trust.
59
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Net OPEB Liability/(Asset)
Actuarial Assumptions – The net OPEB liability/(asset) in the June 30, 2018 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 6.00%
Inflation 2.50%
Investment Rate of Return 6.00%
Mortality (1)
Healthcare Trend Rate 7% in the first
(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, 2018 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 6 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.
Changes in Net OPEB Liability:
The changes in the net OPEB liability/(asset) for the Plan as of the measurement date June 30, 2019 are as
follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 1,515,298$ 1,521,314$ (6,016)$
Changes in the year
Service cost 85,174 - 85,174
Interest 93,071 - 93,071
Changes of assumptions (14,219) - (14,219)
Net investment income - 106,805 (106,805)
Employer contributions - 98,584 (98,584)
Benefit payments (98,584) (98,584) -
Administrative expense - (327) 327
Net changes 65,442 106,478 (41,036)
Balance at June 30, 2020 1,580,740$ 1,627,792$ (47,052)$
60
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it
were calculated using a discount rate that is 1-per centage-point lower (5 percent) or 1-percentage-point higher
(7 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(5%)(6%)(7%)
Net OPEB Liability/(Asset)140,551$ (47,052)$ (204,980)$
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it
were calculated using healthcare cost trend rates that are 1-percentage-point lower (6 percent decreasing to 3
percent) or 1-percentage-point higher (8 percent decreasing to 5 percent) than the current healthcare cost
trend rates:
1% Decrease Current Trend Rate 1% Increase
(6% decreasing (7% decreasing (8% decreasing
to 3%)to 4%)to 5%)
Net OPEB Liability/(Asset)(249,396)$ (47,052)$ 201,309$
OPEB Expense and Deferred Outflows of Resources Related to OPEB:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to measurement date 98,490$ -$
Changes in assumptions 47,430
Difference between expected and actual liability 56,183 -
Net difference between projected and investment earnings 22,578 -
Total 177,251$ 47,430$
For the year ended June 30, 2020, the City recognized OPEB expense of $97,268. At June 30, 2020, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources.
The $98,490 reported as deferred outflows of resources related to OPEB resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the fiscal
year ending June 30, 2020. Other amounts reported as deferred outflows or deferred inflows of resources
related to OPEB will be recognized in as OPEB expense as follows:
61
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
2021 9,965$
2022 9,965
2023 9,965
2024 (1,705)
2025 1,403
Thereafter 1,738
Total 31,331$
Year Ended June 30,
Note 11 - Section 115 Trust
In the fiscal year 2019, the City Council approved the creation of a Section 115 Trust Agreement with U.S Bank
National Association, and Public Agency Retirement Services (PARS), Trust Administrator. The Section 115 Trust
was established as a means to set aside monies to fund the City’s pension and OPEB obligations. Contributions
to the Section 115 Trust are irrevocable, the assets are dedicated to providing benefits to plan member, and the
assets are protected from creditors of the City. The purpose of the creation of the section 115 Trust was to
address the City’s pension obligations by accumulating assets to reduce the net pension liability. However, in
accordance with generally accepted accounting principles, the assets in the Section 115 Trust are not considered
to have present service capacity as plan assets and are therefore considered restricted assets of the City rather
than pension plan assets. Accordingly, the Section 115 Trust’s assets are recorded as restricted for pension
benefits in the City’s General Fund rather than assets of the pension plan during the measurement of the net
pension liability. The assets held in trust will be considered pension plan assets at the time they are transferred
out of the Trust into the pension plan.
The balance in the Trust for the fiscal year ended June 30, 2020 was $10,249,738.
The City currently funds its OPEB obligations through the CERBT program, and although the newly established
Section 115 Trust is able to accept OPEB funds, the City has no immediate plans to fund OPEB obligations
through the Section 115 Trust.
Note 12 - 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 118 California public entities and is organized under a joint powers agreement pursuant to
California Government Code §6500 et seq. The purpos e 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.
62
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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 2019-20, the CJPIA’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under
California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 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.
63
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Purchased Insurance
Pollution Legal Liability Insurance – The City of La Quinta participates in the pollution legal liability insurance
program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled
property, streets, and storms drains owned by the City of La Quinta. Coverage is on a claims-made basis. There is
a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2017
through July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.
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 $70,345,387. There is a
$10,000 deductible per occurrence except for non-em ergency vehicle insurance which has a $2,500 deductible.
Special Event Tenant User Liability Insurance – The City of La Quinta further protects against liability damages by
requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain
activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of La
Quinta according to a schedule. The City of La Quinta then pays for the insurance. The insurance is facilitated by
the Authority.
Earthquake and Flood Insurance – The City of La Quinta purchases earthquake insurance on a portion of its
property from Lloyds/Beazley Limited with a loss limit of $10,000,000.
Crime Insurance – The City of La Quinta purchases crime insurance coverage from Travelers Casualty and Surety
Company of America. The policy covers theft, forgery, identity fraud, computer crime, and monetary fraud with
a single loss limit of $1,000,000 and a deductible of $5,000 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 13 - Fund Balance
Fund Balance Commitments
In the governmental fund financial statements, 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.
64
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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, 2020, the City has committed $10,000,000 for this purpose.
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, 2020, the City has committed $6,800,000.
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, 2020.
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, 2020, the
City has committed $6,540,000.
Committed to Fiscal Year 2019-2020 carryovers totaled $1,778,800 at June 30, 2020.
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, 2020 is $10,491,654.
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 $21,891,363. Capital project carryover
balances as of June 30, 2020 are $13,155,144.
65
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Deficit Fund Balance
At June 30, 2020, the following funds had deficit fund balances:
Major Capital Projects Funds
Capital Improvement (3,664,785)$
Nonmajor Capital Projects Funds
Library Development (1,505,187)
Nonmajor Special Revenue Funds
Federal Assistance (5,271)
Note 14 - 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, 2021. 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. During the fiscal year, the reserve allocation
was suspended. For the fiscal year ending June 30, 2020, the Golf Course had a loss before transfers of
$1,392,086.
66
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Note 15 - Construction Commitments
Various construction projects were in progress at June 30, 2020. Projects costs are paid out of the capital
improvements fund. The following material construction commitments, for which funds have been encumbered,
existed at June 30, 2020, with an estimated cost to complete.
Expenditures
Project Contract to date as of Remaining
Project Name Number Amount June 30, 2020 Commitments
Madison Street Ave. 50 to Ave. 52 091002 2,914,993$ 2,914,198$ 795$
Dune Palms Road Street Improvements 091004 2,650,000 2,604,053 45,947
Dune Palms Bridge Improvements 111205 17,558,565 2,328,179 15,230,386
SilverRock Infrastructure Improvements 141513 7,160,041 714,545 6,445,496
LQ Village Complete Streets-Road Diet Project 151603 12,567,196 8,925,355 3,641,841
La Quinta X Park 151609 4,636,639 881,375 3,755,264
Citywide Drainage Enhancements 151612 9,025,846 7,763,943 1,261,903
HSIP Intersection Improvements 201601 1,270,883 925,147 345,736
HSIP Traffic Signal Interconnect Network 201602 2,268,323 1,927,334 340,989
La Quinta Landscape Renovation Improvement 201603 8,541,292 2,368,390 6,172,902
Civic Center Campus Lake/ Irrigation Conversion 201606 675,270 150,852 524,418
SilverRock Event Space 201608 6,321,900 4,238,058 2,083,842
Washington Street at Fred Waring Dr.201701 2,180,134 323,073 1,857,061
Eisenhower Retention Basin Landscape 201704 750,000 71,691 678,309
Systematic Safety Analysis Report 201708 155,000 146,636 8,364
Ave 53 Jefferson St. Roundabout 201709 2,101,617 195,857 1,905,760
Fritz Burns Park Sidewalk and Parking Lot 201722 77,000 5,239 71,761
Cove Public Restroom 201801 590,000 492,605 97,395
Avenida Bermudas ADA Improvements 201802 88,226 56,685 31,541
Corporate Yard Admin Offices & Crew 201805 411,013 55,773 355,240
SilverRock Event Space Moldular Building 201806 1,200,000 563,166 636,834
Village Art Plaza Promenade & Cultural Campus 201901 610,000 495 609,505
Avenue 50 Bridge Spanning the Evacuation Channel 201902 16,349,000 6,506 16,342,494
LQ Skate Park Conver to Other Activity 201903 263,000 - 263,000
Hwy 111 Corridor Area Plan Implementation 201905 1,250,000 6,986 1,243,014
Fire Station 70 Revitalization 201907 500,000 9,278 490,722
Citywide Catch Basin Modification 201908 250,000 - 250,000
Citywide Misc ADA Improvements 201909 228,673 28,630 200,043
Fritz Burns Pool Heater 201918 235,119 221,187 13,932
Washington St at Ave 50/Calle Tampico 201923 195,400 2,178 193,222
Monroe Street Pavement Rehab 202001 941,000 - 941,000
Citywide Miscellaneous ADA Improvement 202002 121,890 - 121,890
Citywide Public Safety Camera System 202003 1,000,000 - 1,000,000
Washington St Apts Rehabilitation & Testa Property 999901 27,996,401 11,480,824 16,515,577
Jefferson St/I-10 (Contributions Costs)999902 788,297 753,310 34,987
67
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
Note 16 - 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 n ot to exceed $400,000 over an eight-year period. Due to
the reporting of sales tax information by the California Department of Tax and Fee Administration 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, 2020, the City made $52,944 in reimbursement payments to the owner leaving
an outstanding balance of $185,375.
Note 17 - 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.
68
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose trust fund).
Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City 36,960,884$
Cash and investments with fiscal agent 5,362
36,966,246$
See note 2 for required cash and investments disclosures.
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.
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 final payment was made in fiscal year 2019-20 in the amount of
$276,589.
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, 2020 is $1,011,005.
69
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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, 2020, is $1,505,187.
Deferred Outflows of Resources
As debt is refunded, the difference between the carrying value of the refunded debt and the reacquisition price
is recorded as a deferred outflow of resources and amortized over the shorter of the new or refunded debt,
whichever is shorter. Activity during the fiscal year is comprised of the following:
Balance at Balance
July 1, 2019 Additions Deductions June 30, 2020
Deferred charge on refunding 10,299,814$ -$ 583,839$ 9,715,975$
Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2020, follows:
Balance at Balance Due within
July 1, 2019 Additions Repayments June 30, 2020 One year
Tax allocation bonds 185,600,000$ -$ 8,700,000$ 176,900,000$ 9,060,000$
City loans 34,894,713 867,792 3,175,327 32,587,178 3,238,833
Unamortized premiums/
discounts 10,525,859 - 698,625 9,827,234 -
Total 231,020,572$ 867,792$ 12,573,952$ 219,314,412$ 12,298,833$
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.
70
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of
outstanding bonds at June 30, 2020, is $74,170,000 with an unamortized premium of $3,936,582. The minimum
annual requirements to amortize the bond payable as of June 30, 2020, are as follows:
Principal Interest Total
2021 4,180,000$ 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 4,840,000 2,879,713 7,719,713
2025 5,080,000 2,631,712 7,711,712
2026-2030 29,390,000 9,105,685 38,495,685
2031-2034 21,680,000 1,694,717 23,374,717
74,170,000$ 26,323,966$ 100,493,966$
Year Ending June 30,
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, 2020, is $17,360,000 with an unamortized discount of $5,815.
The minimum annual requirements to amortize the bond payable as of June 30, 2020, are as follows:
Principal Interest Total
2021 985,000$ 903,488$ 1,888,488$
2022 1,025,000 860,981 1,885,981
2023 1,070,000 812,817 1,882,817
2024 1,120,000 760,074 1,880,074
2025 1,175,000 701,905 1,876,905
2026-2030 6,870,000 2,473,401 9,343,401
2031-2033 5,115,000 458,179 5,573,179
17,360,000$ 6,970,845$ 24,330,845$
Year Ending June 30,
71
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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,
2020, is $54,625,000. The remaining unamortized bond premium at June 30, 2020 was $6,103,916.
The minimum annual requirements to amortize the 2014 Series A bonds payable as of June 30, 2020, are as
follows:
Principal Interest Total
2021 2,530,000$ 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 2,930,000 2,258,750 5,188,750
2025 3,080,000 2,108,500 5,188,500
2026-2030 17,845,000 8,013,875 25,858,875
2034-2035 17,770,000 2,833,750 20,603,750
2035 5,015,000 125,375 5,140,375
54,625,000$ 22,948,375$ 77,573,375$
Year Ending June 30,
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.
72
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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, 2020, is
$30,745,000 with an unamortized discount of $207,449.
The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency, in
whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026 or on
any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to be
redeemed, without premium, plus accrued interest to the redemption date.
Principal Interest Total
2021 1,365,000$ 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 1,465,000 1,035,479 2,500,479
2025 1,510,000 988,315 2,498,315
2026-2030 8,390,000 4,098,680 12,488,680
2031-2035 10,585,000 2,253,832 12,838,832
2036-2040 4,545,000 279,655 4,824,655
2040 60,000 1,358 61,358
30,745,000$ 12,009,177$ 42,754,177$
Year Ending June 30,
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, 2020, principal and interest due to the City of La Quinta was
$32,587,178.
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.
73
City of La Quinta, California
Notes to Financial Statements
June 30, 2020
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 $245,152,363 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 $20,729,863 and the debt service obligation on the bonds was $17,362,437.
Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at
June 30, 2020.
Note 18 - Extraordinary Item
Annual loan repayments of the loan between the City and the Successor Agency are first applied to principal
then interest and when received are allocated 80 percent General Fund and 20 percent Housing Authority Fund.
The interest accrued on the adjusted principal amount is reflected as an extraordinary gain by the City and an
extraordinary loss in the Successor Agency. 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, 2020 was $13,009,250.
Note 19 - Subsequent Events
During 2020, the world-wide coronavirus pandemic impacted national and global economies. The City Council
and Management are closely monitoring its operations, liquidity and capital resources and is actively working to
minimize the current and future impact of this unprecedented situation. As of the date of issuance of these
financial statements, the current and future full impact to the City is not known.
See Notes to Required Supplementary Information 74
City of La Quinta, California
Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 117,637,847$ 117,637,847$ 117,637,847$ -$
Resources (Inflows)
Taxes 45,530,600 40,115,600 43,286,632 3,171,032
Licenses and permits 1,315,400 1,346,400 1,913,519 567,119
Intergovernmental 8,561,600 8,626,230 7,079,739 (1,546,491)
Charges for services 999,800 999,800 1,179,592 179,792
Use of money and property 553,000 943,000 3,305,351 2,362,351
Fines and forfeitures 276,500 276,500 370,391 93,891
Miscellaneous 610,300 621,300 544,703 (76,597)
Extraordinary Item - - 694,234 694,234
Amounts available for appropriations 175,485,047 170,566,677 176,012,008 5,445,331
Charges to Appropriation (Outflows)
General government
Legislative 308,700 294,700 250,144 44,556
City manager 883,500 861,975 751,206 110,769
City attorney 505,000 565,000 550,548 14,452
Marketing 1,301,600 1,338,469 1,052,957 285,512
Human resources 617,200 537,000 521,077 15,923
City clerk 623,700 580,530 502,284 78,246
Fiscal services 1,253,200 1,256,400 1,194,343 62,057
Central services 2,343,300 5,477,395 1,933,283 3,544,112
The Hub customer services 1,150,100 1,012,100 975,553 36,547
Public safety
Police 16,831,100 16,331,100 16,213,250 117,850
Code compliance 1,346,300 1,279,600 1,144,286 135,314
Fire 7,528,600 7,584,300 6,554,167 1,030,133
Planning and development
Current planning 536,200 591,000 507,224 83,776
Public buildings 1,109,900 1,142,200 1,069,132 73,068
Building & safety 983,100 899,100 789,707 109,393
Administration 986,300 952,300 869,367 82,933
Community services
Community services admin 911,400 912,650 823,403 89,247
Wellness center 796,400 725,720 670,974 54,746
Recreation programs/special events 559,800 633,130 456,413 176,717
Park maintenance 2,330,900 2,155,800 1,958,099 197,701
Public works
Administration - - 13,288 (13,288)
Development services 619,900 566,500 556,793 9,707
Maintenance/operations - street 19,500 (36,961) 26,145 (63,106)
Engineering services 1,229,200 1,252,826 1,168,884 83,942
Capital outlay 285,000 1,453,961 1,196,946 257,015
Transfers out 10,578,600 24,200,923 10,928,870 13,272,053
Total charges to appropriations 55,638,500 72,567,718 52,678,343 19,889,375
Budgetary Fund Balance, June 30 119,846,547$ 97,998,959$ 123,333,665$ 25,334,706$
Budget Amounts
See Notes to Required Supplementary Information 75
City of La Quinta, California
Budgetary Comparison Schedule – Housing Authority
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 22,041,097$ 22,041,097$ 22,041,097$ -$
Resources (Inflows)
Use of money and property 132,000 270,000 1,064,288 794,288
Extraordinary item - 1,061,456 173,558 (887,898)
Transfer in - - - -
Other income 338,000 396,800 505,482 108,682
Amounts available for appropriations 22,511,097 23,769,353 23,784,425 15,072
Charges to Appropriation (Outflows)
Planning and development 859,300 1,341,957 615,052 726,905
Community services - - 350,778 (350,778)
Total charges to appropriations 859,300 1,341,957 965,830 376,127
Budgetary Fund Balance, June 30 21,651,797$ 22,427,396$ 22,818,595$ 391,199$
Budget Amounts
See Notes to Required Supplementary Information 76
City of La Quinta, California
Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan
Year Ended June 30, 2020
2015 2016 2017 2018 2019 2020
Proportion of the net pension liability 0.1034%0.1260%0.1257%0.1272%0.1287%0.13134%
Proportionate share of the net pension liability 6,433,391$ 8,651,290$ 10,874,098$ 12,612,523$ 12,403,691$ 13,458,200$
Covered payroll 5,421,945$ 5,480,758$ 5,569,002$ 5,739,416$ 6,064,875$ 6,669,204$
Proportionate share of the net pension liability as a
percentage of covered payroll 118.65%157.85%195.26%219.75%204.52%201.80%
Plan fiduciary net position as a percentage of the
total pension liability 79.82%78.40%74.06%73.31%75.30%75.30%
* - Fiscal year 2015 was the first year of implementation, therefore, only six 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.
See Notes to Required Supplementary Information 77
City of La Quinta, California
Schedule of Pension Plan Contributions – Miscellaneous Plan
Year Ended June 30, 2020
2015 2016 2017 2018 2019 2020
Actuarially determined contributions -
miscellaneous 728,073$ 797,603$ 949,231$ 1,061,439$ 1,284,275$ 1,479,137$
Contributions in relation to the actuarially
determined contribution (728,073) (797,603) (949,231) (1,061,439) (1,284,275) (1,479,137)
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Covered payroll 5,480,758$ 5,569,002$ 5,739,416$ 6,064,875$ 6,669,204$ 7,066,830$
Contributions as a percentage of covered payroll 13.28%14.32%16.54%17.50%19.26%20.93%
* - Fiscal year 2015 was the first year of implementation, therefore, only five 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.
See Notes to Required Supplementary Information 78
City of La Quinta, California
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
Year Ended June 30, 2020
2019 2020
Total OPEB Liability
Service cost 93,438$ 85,174$
Interest 100,177 93,071
Differences between expected and actual experience 71,533 -
Changes of assumptions (44,229) (14,219)
Benefit payments (86,570) (98,584)
Net Change in Total OPEB Liability 134,349 65,442
Total OPEB liability - beginning 1,380,949 1,515,298
Total OPEB liability - ending 1,515,298$ 1,580,740$
Plan Fiduciary Net Position (FNP)
Employer contributions 1,609,970$ 98,584$
Net investment income (1,680) 106,805
Benefit payments (86,570) (98,584)
Administrative expense (406) (327)
Net Change in Plan Fiduciary Net Position 1,521,314 106,478
Plan Fiduciary Net Position- Beginning of Year - 1,521,314
Plan Fiduciary Net Position- End of Year 1,521,314$ 1,627,792$
Net OPEB liability/(asset) - End of Year (6,016) (47,052)
Fiduciary Net Position as a percentage of the Total OPEB Liability 100.4%103.0%
Covered-employee payroll 6,064,875 6,669,204
Net OPEB liability/(asset) as a percentage of covered-employee payroll -0.1%-0.7%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation.
See Notes to Required Supplementary Information 79
City of La Quinta, California
Schedule of OPEB Contributions
Year Ended June 30, 2020
2019 2020
Actuarially determined contribution (ADC)88,280$ 90,229$
Contributions in relation to the (ADC)98,584 98,490
Contribution deficiency (excess)(10,304) (8,261)
Covered payroll 6,669,204$ 7,066,830$
Contributions as a percentage of payroll 1.5%1%
Notes to Schedule
Valuation date:Actuarially determined contribution rates are calculated
as of June 30, one year prior to the end of the fiscal year
in which contributions reported.
Methods and assumptions used to determined contribution rates:
Actuarial cost method Entry-Age Normal Cost Method
Amortization method Level percent of payroll
Amortization period 19 years
Asset valuation method Market value
Inflation 2.5%
Healthcare Trend Rate 7% in the first year, trending down to 4% over 58 years.
Investment rate of return 6%
Retirement age 55
Mortality Derived using CalPERS Membership Data for all Funds
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation.
80
City of La Quinta, California
Note to Required Supplementary Information
June 30, 2020
Note 1 - 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.
The City did not adopt a budget for the Transportation Uniform Mitigation Fee Special Revenue Fund.
Budget Basis of Accounting
Budget for governmental funds are adopted on a basis consistent with generally accepted accounting principles
(GAAP).
Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations for the year ended June 30, 2020:
Budget Actual Variance
South Coast Air Quality
Capital Outlay -$ 88,444$ (88,444)$
Supplementary Information
June 30, 2020
City of La Quinta, California
82
City of La Quinta, California
Other Governmental Funds
June 30, 2020
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.
Lighting and Landscaping 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 de veloper 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 f or 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.
83
City of La Quinta, California
Other Governmental Funds
June 30, 2020
Law Enforcement Fund – To account for law enforcement grants and restricted revenue for public safety.
Measure A Fund – In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund
a variety of highway improvements, local street and road maintenance, commuter assistance and specialized
highway transit projects. This fund is used to collect this tax and pursuant to the provision of Measure A, it is
restricted for local street and road expenditures.
Economic Development Fund – To account for the revenues and expenditures related to proceeds from sale of
City owned land and future economic development.
AB 1379 Fund – To account for the revenues and expenditures related to the annual business license
accessibility fee to be used for expenses enhancing accessibility requirements.
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.
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.
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. Seven 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 – This fund is used to account for the debt service that will be used for the
principal and interest payments of the Financing Authority’s outstanding debt and any related reporting
requirements.
84
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2020
State Library and Federal Lighting and
Gas Tax Museum Assistance SLESA Landscaping
Assets
Pooled cash and investments 896,279$ 7,278,099$ 12,813$ 183,098$ 651,786$
Receivables
Taxes 111,343 - - - 33,687
Accrued interest 1,422 11,551 20 291 1,034
Prepaid costs - 2,875 - - -
Due from other governments - 862,460 - 25,000 -
Total assets 1,009,044$ 8,154,985$ 12,833$ 208,389$ 686,507$
Liabilities and Fund Balances
Liabilities
Accounts payable 3,030$ 101,983$ 18,104$ -$ 31,059$
Accrued liabilities 12,371 2,895 - - 7,608
Due to other governments - - - - -
Due to other funds - - - - -
Total liabilities 15,401 104,878 18,104 - - 38,667
Deferred Inflow of Resources
Unavailable revenues - - - - -
Fund Balances
Nonspendable
Prepaid costs - 2,875 - - -
Restricted for
Planning and development projects - - - - -
Public safety - - - 208,389 -
Community services - 8,047,232 - - -
Public works 993,643 - - - 647,840
Capital projects - - - - -
Unassigned - - (5,271) - -
Total fund balances 993,643 8,050,107 (5,271) 208,389 647,840
Total liabilities and fund balances 1,009,044$ 8,154,985$ 12,833$ 208,389$ 686,507$
Special Revenue Funds
85
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2020
La Quinta Public Art in South Coast
Quimby Safety Officer Public Places Air Quality AB 939
Assets
Pooled cash and investments 1,563,094$ 47,481$ 691,150$ 23,481$ 789,279$
Receivables
Taxes - - - - 2,433
Accrued interest 2,481 75 1,097 37 1,253
Prepaid costs - - - - -
Due from other governments - - - 13,175 -
Total assets 1,565,575$ 47,556$ 692,247$ 36,693$ 792,965$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ 222$ -$ 3,000$
Accrued liabilities - - - - -
Due to other governments - - - - -
Due to other funds - - - - -
Total liabilities - - - 222 - 3,000
Deferred Inflow of Resources
Unavailable revenues - - - 13,174 -
Fund Balances
Nonspendable
Prepaid costs - - - - -
Restricted for
Planning and development projects - - - 23,519 789,965
Public safety - 47,556 - - -
Community services 1,565,575 - 692,025 - -
Public works - - - - -
Capital projects - - - - -
Unassigned - - - - -
Total fund balances 1,565,575 47,556 692,025 23,519 789,965
Total liabilities and fund balances 1,565,575$ 47,556$ 692,247$ 36,693$ 792,965$
Special Revenue Funds
86
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2020
Transportation
Law Economic Uniform
Enforcement Measure A Development AB 1379 Mitigation Fee
Assets
Pooled cash and investments 1,219,472$ 1,225,205$ 4,122,991$ 37,317$ 236,785$
Receivables
Taxes - 300,310 - - -
Accrued interest 1,935 1,944 6,543 59 376
Prepaid costs - - - - -
Due from other governments - - - - -
Total assets 1,221,407$ 1,527,459$ 4,129,534$ 37,376$ 237,161$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ 63,617$ 311$ 225,664$
Accrued liabilities - - - - -
Due to other governments - - - - -
Due to other funds 6,287 - - - -
Total liabilities 6,287 - 63,617 311 225,664
Deferred Inflow of Resources
Unavailable revenues - - - - -
Fund Balances
Nonspendable
Prepaid costs - - - - -
Restricted for
Planning and development projects - - - 37,065 11,497
Public safety 1,215,120 - - - -
Community services - - 4,065,917 - -
Public works - 1,527,459 - - -
Capital projects - - - - -
Unassigned - - - - -
Total fund balances 1,215,120 1,527,459 4,065,917 37,065 11,497
Total liabilities and fund balances 1,221,407$ 1,527,459$ 4,129,534$ 37,376$ 237,161$
Special Revenue Funds
87
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2020
Parks and Library
Infrastructure Civic Center Transportation Recreation Development
Assets
Pooled cash and investments 19,378$ 300,794$ 2,317,823$ 293,561$ -$
Receivables
Taxes - - - - -
Accrued interest 31 477 3,679 466 -
Prepaid costs - - - - -
Due from other governments - - - -
Total assets 19,409$ 301,271$ 2,321,502$ 294,027$ -$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ -$
Accrued liabilities - - - -
Due to other governments - - - - 1,505,187
Due to other funds - - - - -
Total liabilities - - - - 1,505,187
Deferred Inflow of Resources
Unavailable revenues - - - - -
Fund Balances
Nonspendable
Prepaid costs - - - - -
Restricted for
Planning and development projects - - - - -
Public safety - - - - -
Community services - - - - -
Public works - - - - -
Capital projects 19,409 301,271 2,321,502 294,027 -
Unassigned - - - - (1,505,187)
Total fund balances 19,409 301,271 2,321,502 294,027 (1,505,187)
Total liabilities and fund balances 19,409$ 301,271$ 2,321,502$ 294,027$ -$
Capital Projects Funds
88
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2020
Debt Service Fund
Total
Community Financing Governmental
Center Street Facility Park Facility Fire Facility Authority Funds
Assets
Pooled cash and investments 192,448$ 39,068$ 5,714$ 135,820$ -$ 22,282,936$
Receivables
Taxes - - - - - 447,773
Accrued interest 305 62 9 216 - 35,363
Prepaid costs - - - - - 2,875
Due from other governments - - - - - 900,635
Total assets 192,753$ 39,130$ 5,723$ 136,036$ -$ 23,669,582$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ -$ 446,990$
Accrued liabilities - - - - - 22,874
Due to other governments - - - - - 1,505,187
Due to other funds - - - - - 6,287
Total liabilities - - - - - 1,981,338
Deferred Inflow of Resources
Unavailable revenues - - - - - 13,174
Fund Balances
Nonspendable
Prepaid costs - - - - - 2,875
Restricted for
Planning and development projects - - - - - 862,046
Public safety - - - 136,036 - 1,607,101
Community services - - 5,723 - - 14,376,472
Public works - 39,130 - - - 3,208,072
Capital projects 192,753 - - - - 3,128,962
Unassigned - - - - - (1,510,458)
Total fund balances 192,753 39,130 5,723 136,036 - 21,675,070
Total liabilities and fund balances 192,753$ 39,130$ 5,723$ 136,036$ -$ 23,669,582$
Capital Projects Funds
89
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental
Funds
June 30, 2020
State Library and Federal Lighting and
Gas Tax Museum Assistance SLESA Landscaping
Revenues
Taxes -$ -$ -$ -$ -$
Assessments - - - - 957,017
Intergovernmental 1,644,878 2,860,584 14,599 155,948 -
Use of money and property 34,797 271,871 339 6,999 24,062
Developer participation - - - - -
Miscellaneous 47,327 - - - -
Total revenues 1,727,002 3,132,455 14,938 162,947 981,079
Expenditures
Current
General government - - - - -
Public safety - - - 94,824 -
Planning and development - - - - -
Community services - 1,885,554 - - -
Public works 1,358,997 - 18,105 - 1,865,410
Capital outlay - - - - -
Debt service
Interest and fiscal charges - - - - -
Total expenditures 1,358,997 1,885,554 18,105 94,824 1,865,410
Excess (Deficiency) of Revenues
over (under) Expenditures 368,005 1,246,901 (3,167) 68,123 (884,331)
Other Financing Sources (Uses)
Transfers in 522,968 - - - 994,700
Transfers out (578,159) - (2,104) - -
Total other financing sources (uses)(55,191) - (2,104) - 994,700
Net Change in Fund Balances 312,814 1,246,901 (5,271) 68,123 110,369
Fund Balances, Beginning of Year 680,829 6,803,206 - 140,266 537,471
Fund Balances, End of Year 993,643$ 8,050,107$ (5,271)$ 208,389$ 647,840$
Special Revenue Funds
90
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental
Funds
June 30, 2020
La Quinta Public Art in South Coast
Quimby Safety Officer Public Places Air Quality AB 939
Revenues
Taxes -$ -$ -$ -$ 67,046$
Assessments - - - - -
Intergovernmental - - - 39,884 -
Use of money and property 69,690 1,778 26,011 1,649 30,094
Developer participation - - 71,446 - -
Miscellaneous - - - - -
Total revenues 69,690 1,778 97,457 41,533 97,140
Expenditures
Current
General government - - - - -
Public safety - - - - -
Planning and development - - - 32,712 133,180
Community services - - 14,480 - -
Public works - - - - -
Capital outlay - - 14,400 88,444 -
Debt service
Interest and fiscal charges - - - - -
Total expenditures - - 28,880 121,156 133,180
Excess (Deficiency) of Revenues
over (under) Expenditures 69,690 1,778 68,577 (79,623) (36,040)
Other Financing Sources (Uses)
Transfers in - 2,000 100,000 - -
Transfers out (1,933,252) - (12,800) - -
Total other financing sources (uses)(1,933,252) 2,000 87,200 - -
Net Change in Fund Balances (1,863,562) 3,778 155,777 (79,623) (36,040)
Fund Balances, Beginning of Year 3,429,137 43,778 536,248 103,142 826,005
Fund Balances, End of Year 1,565,575$ 47,556$ 692,025$ 23,519$ 789,965$
Special Revenue Funds
91
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental
Funds
June 30, 2020
Transportation
Law Economic Uniform
Enforcement Measure A Development AB 1379 Mitigation Fee
Revenues
Taxes -$ 1,527,360$ -$ -$ -$
Assessments - - - - -
Intergovernmental - - - 19,419 -
Use of money and property 45,723 50,958 143,489 1,345 4,734
Developer participation - - - - -
Miscellaneous - - - - -
Total revenues 45,723 1,578,318 143,489 20,764 4,734
Expenditures
Current
General government - - - - -
Public safety 3,206 - - - -
Planning and development - - 585,077 3,128 -
Community services - - - - -
Public works - 13,982 - - -
Capital outlay - - - - -
Debt service
Interest and fiscal charges - - - - -
Total expenditures 3,206 13,982 585,077 3,128 -
Excess (Deficiency) of Revenues
over (under) Expenditures 42,517 1,564,336 (441,588) 17,636 4,734
Other Financing Sources (Uses)
Transfers in - - 1,500,000 - -
Transfers out - (1,475,690) - - -
Total other financing sources (uses)- (1,475,690) 1,500,000 - -
Net Change in Fund Balances 42,517 88,646 1,058,412 17,636 4,734
Fund Balances, Beginning of Year 1,172,603 1,438,813 3,007,505 19,429 6,763
Fund Balances, End of Year 1,215,120$ 1,527,459$ 4,065,917$ 37,065$ 11,497$
Special Revenue Funds
92
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental
Funds
June 30, 2020
Parks and Library
Infrastructure Civic Center Transportation Recreation Development
Revenues
Taxes -$ -$ -$ -$ -$
Assessments - - - - -
Intergovernmental - - - - -
Use of money and property 715 9,928 86,803 24,439 -
Developer participation - 213,014 715,194 448,512 75,336
Miscellaneous - - - - -
Total revenues 715 222,942 801,997 472,951 75,336
Expenditures
Current
General government - - - - -
Public safety - - - - -
Planning and development 1,410 1,411 1,410 1,410 1,410
Community services - - - - -
Public works - - 400,000 - -
Capital outlay - - - - -
Debt service
Interest and fiscal charges - - - - 28,868
Total expenditures 1,410 1,411 401,410 1,410 30,278
Excess (Deficiency) of Revenues
over (under) Expenditures (695) 221,531 400,587 471,541 45,058
Other Financing Sources (Uses)
Transfers in - - - - -
Transfers out - - (541,809) (1,440,287) -
Total other financing sources (uses)- - (541,809) (1,440,287) -
Net Change in Fund Balances (695) 221,531 (141,222) (968,746) 45,058
Fund Balances, Beginning of Year 20,104 79,740 2,462,724 1,262,773 (1,550,245)
Fund Balances, End of Year 19,409$ 301,271$ 2,321,502$ 294,027$ (1,505,187)$
Capital Projects Funds
93
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental
Funds
June 30, 2020
Debt Service Fund
Total
Community Financing Governmental
Center Street Facility Park Facility Fire Facility Authority Funds
Revenues
Taxes -$ -$ -$ -$ -$ 1,594,406$
Assessments - - - - - 957,017
Intergovernmental - - - - - 4,735,312
Use of money and property 7,021 1,284 155 4,465 1,100 849,449
Developer participation 28,251 28,967 8,760 97,908 - 1,687,388
Miscellaneous - - - - - 47,327
Total revenues 35,272 30,251 8,915 102,373 1,100 - 9,870,899
Expenditures
Current
General government - - - - 1,100 1,100
Public safety - - - - - 98,030
Planning and development 1,410 1,410 1,410 1,410 - 766,788
Community services - - - - - 1,900,034
Public works - - - - - 3,656,494
Capital outlay - - - - - 102,844
Debt service
Interest and fiscal charges - - - - - 28,868
Total expenditures 1,410 1,410 1,410 1,410 1,100 - 6,554,158
Excess (Deficiency) of Revenues
over (under) Expenditures 33,862 28,841 7,505 100,963 - 3,316,741
Other Financing Sources (Uses)
Transfers in - - - - - 3,119,668
Transfers out - - - - - (5,984,101)
Total other financing sources (uses)- - - - - (2,864,433)
Net Change in Fund Balances 33,862 28,841 7,505 100,963 - 452,308
Fund Balances, Beginning of Year 158,891 10,289 (1,782) 35,073 - 21,222,762
Fund Balances, End of Year 192,753$ 39,130$ 5,723$ 136,036$ -$ 21,675,070$
Capital Projects Funds
94
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
State Gas Tax
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 680,829$ 680,829$ 680,829$ -$
Resources (Inflows)
Intergovernmental 1,715,900 1,712,400 1,644,878 (67,522)
Use of money and property 3,000 3,000 34,797 31,797
Miscellaneous 46,400 46,400 47,327 927
Transfers in 595,600 345,600 522,968 177,368
Amounts available for
appropriations 3,041,729 2,788,229 2,930,799 142,570
Charges to Appropriation (Outflows)
Public works 1,678,900 1,468,500 1,358,997 109,503
Transfers out 682,000 1,009,634 578,159 431,475
Total charges to
appropriations 2,360,900 2,478,134 1,937,156 540,978
Budgetary Fund Balance, June 30 680,829$ 310,095$ 993,643$ 683,548$
Budget Amounts
95
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Library and Museum
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 6,803,206$ 6,803,206$ 6,803,206$ -$
Resources (Inflows)
Intergovernmental 2,700,000 2,700,000 2,860,584 160,584
Use of money and property 42,000 42,000 271,871 229,871
Miscellaneous revenue 10,000 10,000 - (10,000)
Amounts available for
appropriations 9,555,206 9,555,206 9,935,661 380,455
Charges to Appropriation (Outflows)
Community services 2,399,100 2,521,100 1,885,554 635,546
Capital Outlay 20,000 20,000 - 20,000
Total charges to
appropriations 2,419,100 2,541,100 1,885,554 655,546
Budgetary Fund Balance, June 30 7,136,106$ 7,014,106$ 8,050,107$ 1,036,001$
Budget Amounts
96
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Federal Assistance
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows)
Intergovernmental 123,200 193,840 14,599 (179,241)
Use of money and property - - 339 339
Amounts available for
appropriations 123,200 193,840 14,938 (178,902)
Charges to Appropriation (Outflows)
Public Works 20,000 20,000 18,105 1,895
Transfers out 103,200 177,172 2,104 175,068
Total charges to
appropriations 123,200 197,172 20,209 176,963
Budgetary Fund Balance, June 30 -$ (3,332)$ (5,271)$ (1,939)$
Budget Amounts
97
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
SLESA
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 140,266$ 140,266$ 140,266$ -$
Resources (Inflows)
Intergovernmental 100,000 100,000 155,948 55,948
Use of money and property 500 500 6,999 6,499
Amounts available for
appropriations 240,766 240,766 303,213 62,447
Charges to Appropriation (Outflows)
Public safety 100,000 100,000 94,824 5,176
Budgetary Fund Balance, June 30 140,766$ 140,766$ 208,389$ 67,623$
Budget Amounts
98
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Lighting and Landscaping
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 537,471$ 537,471$ 537,471$ -$
Resources (Inflows)
Assessments 976,500 976,500 957,017 (19,483)
Use of money and property 3,000 3,000 24,062 21,062
Transfers in 1,294,700 994,700 994,700 -
Amounts available for
appropriations 2,811,671 2,511,671 2,513,250 1,579
Charges to Appropriation (Outflows)
Public works 2,274,200 2,165,200 1,865,410 299,790
Budgetary Fund Balance, June 30 537,471$ 346,471$ 647,840$ 301,369$
Budget Amounts
99
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Quimby
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,429,137$ 3,429,137$ 3,429,137$ -$
Resources (Inflows)
Use of money and property 40,000 40,000 69,690 29,690
Developer participation 100,000 100,000 - (100,000)
Amounts available for
appropriations 3,569,137 3,569,137 3,498,827 (70,310)
Charges to Appropriation (Outflows)
Transfers out 263,000 4,714,876 1,933,252 2,781,624
Budgetary Fund Balance, June 30 3,306,137$ (1,145,739)$ 1,565,575$ 2,711,314$
Budget Amounts
100
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Public Safety
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 43,778$ 43,778$ 43,778$ -$
Resources (Inflows)
Use of money and property 600 600 1,778 1,178
Transfers in 2,000 2,000 2,000 -
Amounts available for
appropriations 46,378 46,378 47,556 1,178
Budgetary Fund Balance, June 30 46,378$ 46,378$ 47,556$ 1,178$
Budget Amounts
101
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Art in Public Places
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 536,248$ 536,248$ 536,248$ -$
Resources (Inflows)
Use of money and property 5,500 5,500 26,011 20,511
Developer participation 55,000 55,000 71,446 16,446
Transfer In 100,000 100,000 100,000 -
Amounts available for
appropriations 696,748 696,748 733,705 36,957
Charges to Appropriation (Outflows)
Community services 80,000 80,000 14,480 65,520
Capital outlay 80,000 80,000 14,400 65,600
Transfers out - 600,000 12,800 587,200
Total charges to
appropriations 160,000 760,000 41,680 718,320
Budgetary Fund Balance, June 30 536,748$ (63,252)$ 692,025$ 755,277$
Budget Amounts
102
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
South Coast Air Quality
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 103,142$ 103,142$ 103,142$ -$
Resources (Inflows)
Intergovernmental 52,000 52,000 39,884 (12,116)
Use of money and property 1,500 1,500 1,649 149
Amounts available for
appropriations 156,642 156,642 144,675 (11,967)
Charges to Appropriation (Outflows)
Planning and development 114,000 111,500 32,712 78,788
Capital outlay - - 88,444 (88,444)
Total charges to
appropriations 114,000 111,500 121,156 (9,656)
Budgetary Fund Balance, June 30 42,642$ 45,142$ 23,519$ (21,623)$
Budget Amounts
103
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
AB 939
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 826,005$ 826,005$ 826,005$ -$
Resources (InFlows)
Taxes 61,000 61,000 67,046 6,046
Use of money and property 9,000 9,000 30,094 21,094
Amounts available for
appropriations 896,005 896,005 923,145 27,140
Charges to Appropriation (OutFlows)
Planning and development 50,000 180,000 133,180 46,820
Budgetary Fund Balance, June 30 846,005$ 716,005$ 789,965$ 73,960$
Budget Amounts
104
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Law Enforcement
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,172,603$ 1,172,603$ 1,172,603$ -$
Resources (Inflows)
Intergovernmental 12,000 12,000 - (12,000)
Use of money and property 3,200 3,200 45,723 42,523
Amounts available for
appropriations 1,187,803 1,187,803 1,218,326 30,523
Charges to Appropriation (Outflows)
Public safety 12,000 12,000 3,206 8,794
Budgetary Fund Balance, June 30 1,175,803$ 1,175,803$ 1,215,120$ 39,317$
Budget Amounts
105
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Measure A
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,438,813$ 1,438,813$ 1,438,813$ -$
Resources (Inflows)
Taxes 1,294,300 1,294,300 1,527,360 233,060
Use of money and property 15,000 15,000 50,958 35,958
Miscellaneous revenue 2,000 2,000 - (2,000)
Amounts available for
appropriations 2,750,113 2,750,113 3,017,131 267,018
Charges to Appropriation (OutFlows)
Public Works 4,000 10,000 13,982 (3,982)
Transfers out 1,294,300 2,986,248 1,475,690 1,510,558
Total charges to
appropriations 1,298,300 2,996,248 1,489,672 1,506,576
Budgetary Fund Balance, June 30 1,451,813$ (246,135)$ 1,527,459$ 1,773,594$
Budget Amounts
106
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Economic Development
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,007,505$ 3,007,505$ 3,007,505$ -$
Resources (Inflows)
Use of money and property - - 143,489 143,489
Transfer in - 1,500,000 1,500,000 -
Amounts available for
appropriations 3,007,505 4,507,505 4,650,994 143,489
Charges to Appropriation (Outflows)
Planning and development - 1,500,000 585,077 914,923
Budgetary Fund Balance, June 30 3,007,505$ 3,007,505$ 4,065,917$ 1,058,412$
Budget Amounts
107
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
AB 1379
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 19,429$ 19,429$ 19,429$ -$
Resources (Inflows)
Intergovernmental 21,000 21,000 19,419 (1,581)
Use of money and property 200 200 1,345 1,145
Amounts available for
appropriations 40,629 40,629 40,193 (436)
Charges to Appropriation (Outflows)
Planning and development 4,600 5,600 3,128 2,472
Budgetary Fund Balance, June 30 36,029$ 35,029$ 37,065$ 2,036$
Budget Amounts
108
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Capital Improvement
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (379,922)$ (379,922)$ (379,922)$ -$
Resources (Inflows)
Intergovernmental 10,149,800 31,393,170 5,292,544 (26,100,626)
Contributions from other
agencies - - 294,802 294,802
Developer participation 49,900 1,369,008 176,199 (1,192,809)
Miscellaneous revenue - - 273,583 273,583
Transfers in 11,022,300 40,553,514 13,347,741 (27,205,773)
Amounts available for
appropriations 20,842,078 72,935,770 19,004,947 (53,930,823)
Charges to Appropriation (Outflows)
Planning and development - 2,813,608 819,011 1,994,597
Capital outlay 21,222,000 70,754,819 21,850,721 48,904,098
Total charges to
appropriations 21,222,000 73,568,427 22,669,732 50,898,695
Budgetary Fund Balance, June 30 (379,922)$ (632,657)$ (3,664,785)$ (3,032,128)$
Budget Amounts
109
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Infrastructure
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 20,104$ 20,104$ 20,104$ -$
Resources (Inflows)
Use of money and property 300 300 715 415
Amounts available for
appropriations 20,404 20,404 20,819 415
Charges to Appropriation (Outflows)
Planning and development - 1,500 1,410 90
Transfers out - 22,618 - 22,618
Total charges to
appropriations - 24,118 1,410 22,708
Budgetary Fund Balance, June 30 20,404$ (3,714)$ 19,409$ 23,123$
Budget Amounts
110
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Civic Center
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 79,740$ 79,740$ 79,740$ -$
Resources (Inflows)
Use of money and property - - 9,928 9,928
Developer participation 110,000 110,000 213,014 103,014
Amounts available for
appropriations 189,740 189,740 302,682 112,942
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges 13,000 - - -
Planning and development - 1,500 1,411 89
Total charges to
appropriations 13,000 1,500 1,411 89
Budgetary Fund Balance, June 30 176,740$ 188,240$ 301,271$ 113,031$
Budget Amounts
111
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Transportation
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,462,724$ 2,462,724$ 2,462,724$ -$
Resources (Inflows)
Use of money and property 45,000 45,000 86,803 41,803
Developer participation 350,000 350,000 715,194 365,194
Amounts available for
appropriations 2,857,724 2,857,724 3,264,721 406,997
Charges to Appropriation (OutFlows)
Planning and development - 1,500 1,410 90
Public works 400,000 400,000 400,000 -
Transfers out 83,700 1,207,230 541,809 665,421
Total charges to
appropriations 483,700 1,608,730 943,219 665,511
Budgetary Fund Balance, June 30 2,374,024$ 1,248,994$ 2,321,502$ 1,072,508$
Budget Amounts
112
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Parks and Recreation
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,262,773$ 1,262,773$ 1,262,773$ -$
Resources (Inflows)
Use of money and property 6,000 6,000 24,439 18,439
Developer participation 300,000 300,000 448,512 148,512
Amounts available for
appropriations 1,568,773 1,568,773 1,735,724 166,951
Charges to Appropriation (Outflows)
Planning and development - 1,500 1,410 90
Transfers out - 2,400,000 1,440,287 959,713
Total charges to
appropriations - 2,401,500 1,441,697 959,803
Budgetary Fund Balance, June 30 1,568,773$ (832,727)$ 294,027$ 1,126,754$
Budget Amounts
113
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Library Development
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,550,245)$ (1,550,245)$ (1,550,245)$ -$
Resources (Inflows)
Developer participation 45,000 45,000 75,336 30,336
Amounts available for
appropriations (1,505,245) (1,505,245) (1,474,909) 30,336
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges 32,000 32,000 28,868 3,132
Planning and development - 1,500 1,410 90
Total charges to
appropriations 32,000 33,500 30,278 3,222
Budgetary Fund Balance, June 30 (1,537,245)$ (1,538,745)$ (1,505,187)$ 33,558$
Budget Amounts
114
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Community Center
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 158,891$ 158,891$ 158,891$ -$
Resources (Inflows)
Use of money and property 2,000 2,000 7,021 5,021
Developer participation 20,000 20,000 28,251 8,251
Amounts available for
appropriations 180,891 180,891 194,163 13,272
Charges to Appropriation (Outflows)
Planning and development - 1,500 1,410 90
Transfers out - 101,639 - 101,639
Total charges to
appropriations - 103,139 1,410 101,729
Budgetary Fund Balance, June 30 180,891$ 77,752$ 192,753$ 115,001$
Budget Amounts
115
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Street Facility
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 10,289$ 10,289$ 10,289$ -$
Resources (Inflows)
Use of money and property - - 1,284 1,284
Developer participation 17,000 17,000 28,967 11,967
Transfers in 6,000 - - -
Amounts available for
appropriations 33,289 27,289 40,540 13,251
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges 30,000 - - -
Planning and development - 1,500 1,410 90
Total charges to
appropriations 30,000 1,500 1,410 90
Budgetary Fund Balance, June 30 3,289$ 25,789$ 39,130$ 13,341$
Budget Amounts
116
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Park Facility
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,782)$ (1,782)$ (1,782)$ -$
Resources (Inflows)
Use of money and property - - 155 155
Developer participation 7,000 7,000 8,760 1,760
Amounts available for
appropriations 5,218 5,218 7,133 1,915
Charges to Appropriation (Outflows)
Planning and development - 1,500 1,410 90
Transfers out 6,000 - - -
Total charges to
appropriations 6,000 1,500 1,410 90
Budgetary Fund Balance, June 30 (782)$ 3,718$ 5,723$ 2,005$
Budget Amounts
117
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Fire Facility
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 35,073$ 35,073$ 35,073$ -$
Resources (Inflows)
Use of money and property - - 4,465 4,465
Developer participation 55,000 55,000 97,908 42,908
Amounts available for
appropriations 90,073 90,073 137,446 47,373
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges 7,500 - - -
Planning and development - 1,500 1,410 90
Total charges to
appropriations 7,500 1,500 1,410 90
Budgetary Fund Balance, June 30 82,573$ 88,573$ 136,036$ 47,463$
Budget Amounts
118
City of La Quinta, California
Budgetary Comparison Schedule – Debt Service Fund
Financing Authority
Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows)
Use of money and property 1,000 1,000 1,100 100
Amounts available for
appropriations 1,000 1,000 1,100 100
Charges to Appropriation (Outflows)
General government 1,000 1,000 1,100 (100)
Budgetary Fund Balance, June 30 -$ -$ -$ -$
Budget Amounts
119
City of La Quinta, California
Internal Service Funds
Year Ended June 30, 2020
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 good 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 and operated
park equipment and facilities.
Insurance Fund – To account for the City’s insurance coverage.
120
City of La Quinta, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2020
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Assets
Current
Pooled cash and investments 3,346,414$ 1,244,671$ 3,649,774$ 21,086$ 8,261,945$
Receivables
Accrued interest 5,311 1,975 5,792 33 13,111
Prepaid costs - 74,913 - 384,187 459,100
Total current assets 3,351,725 1,321,559 3,655,566 405,306 8,734,156
Noncurrent
Capital assets - net of accumulated
depreciation 1,421,511 353,781 12,615,174 - 14,390,466
Total assets 4,773,236 1,675,340 16,270,740 405,306 23,124,622
Liabilities
Current
Accounts payable 143,167 41,946 31,518 - 216,631
Accrued liabilities - 1,372 - - 1,372
Current portion of capital leases 201,526 33,601 - - 235,127
Total current liabilities 344,693 76,919 31,518 - 453,130
Noncurrent
Long-term portion of capital leases 376,720 84,004 - - 460,724
Total liabilities 721,413 160,923 31,518 - 913,854
Net Position
Net investment in capital assets 843,265 236,176 12,615,174 - 13,694,615
Unrestricted 3,208,558 1,278,241 3,624,048 405,306 8,516,153
Total net position 4,051,823$ 1,514,417$ 16,239,222$ 405,306$ 22,210,768$
Governmental Activities - Internal Service Funds
121
City of La Quinta, California
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2020
Park
Equipment Information Equipment and
Replacement Technology Facilities Insurance Totals
Operating Revenues
Sales and service charges 869,200$ 1,385,555$ 337,000$ 933,250$ 3,525,005$
Operating Expenses
Administration and general 79,263 45,040 - 281,054 405,357
Fuel and oil 73,751 - - - 73,751
Maintenance and parts 237,952 163 - - 238,115
Contract services - 525,067 230,422 - 755,489
Software and supplies - 713,689 - 615,437 1,329,126
Depreciation expense 255,452 290,916 544,770 - 1,091,138
Total operating expenses 646,418 1,574,875 775,192 896,491 3,892,976
Operating Income (Loss)222,782 (189,320) (438,192) 36,759 (367,971)
Nonoperating Revenue (Expenses)
Interest revenue 125,711 46,436 139,171 1,293 312,611
Miscellaneous revenue - - 327,338 2,358 329,696
Interest expense (69,155) (26) - - (69,181)
Total nonoperating revenues 56,556 46,410 466,509 3,651 573,126
Income (Loss) Before Transfers 279,338 (142,910) 28,317 40,410 205,155
Transfers in - 100,000 - - 100,000
Transfers out (150,120) - (139,518) - (289,638)
Changes in Net Position 129,218 (42,910) (111,201) 40,410 15,517
Net Position
Beginning of Year 3,922,605 1,557,327 16,350,423 364,896 22,195,251
End of Year 4,051,823$ 1,514,417$ 16,239,222$ 405,306$ 22,210,768$
Governmental Activities - Internal Service Funds
122
City of La Quinta, California
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2020
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Operating Activities
Cash received from interfund services provided 869,200$ 1,385,555$ 337,000$ 933,250$ 3,525,005$
Cash paid to suppliers for goods and services (275,546) (1,281,001) (199,219) (915,796) (2,671,562)
Cash paid to employees for services - - - (1,286) (1,286)
Net Cash from Operating Activities 593,654 104,554 137,781 16,168 852,157
Non-Capital Financing Activities
Cash transfers out (150,120) - (139,518) - (289,638)
Cash transfers in - 100,000 - - 100,000
Net Cash from (used for) Non-Capital
Financing Activities (150,120) 100,000 (139,518) - (189,638)
Capital and Related Financing Activities
Capital contributions - - 327,339 - 327,339
Acquisition and construction of capital assets (361,614) (187,082) (327,339) - (876,035)
Interest paid on capital debt (69,155) (26) - - (69,181)
Net Cash from (used for) Capital and
Related Financing Activities (430,769) (187,108) - - (617,877)
Investing Activities
Interest received 129,317 47,743 143,142 3,622 323,824
Net Change in Cash and Cash Equivalents 142,082 65,189 141,405 - 19,790 - 368,466
Cash and Cash Equivalents, Beginning of Year 3,204,332 1,179,482 3,508,369 1,296 7,893,479
Cash and Cash Equivalents, End of Year 3,346,414$ 1,244,671$ 3,649,774$ 21,086$ 8,261,945$
- - - - - -
Reconciliation of operating income to net cash
from (used for) operating activities
Operating income (loss)222,782$ (189,320)$ (438,192)$ 36,759$ (367,971)$
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities
Depreciation 255,452 290,916 544,770 - 1,091,138
Changes in
Prepaid costs - 15,462 - 366,140 381,602
Accounts payable 115,420 (13,177) 31,203 (6) 133,440
Accrued liabilities - 673 - (1,286) (613)
Due to other funds - - - (385,439) (385,439)
Net Cash from Operating Activities 593,654$ 104,554$ 137,781$ 16,168$ 852,157$
Non-Cash Transactions - - - -
Capital assets acquired by capital lease -$ 116,966$ -$ -$ 116,966$
Governmental Activities - Internal Service Funds
Statistical Section
June 30, 2020
City of La Quinta, California
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123
City of La Quinta
Statistical Section
Year Ended June 30, 2020
This part of the City of La Quinta’s 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.124
Revenue Capacity
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property taxes.136
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 use
additional debt in the future.146
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 and to help make comparisons over time and with other governments.153
Operating Information
These schedules contain information about the City's operations and resources
to help the reader understand how the City's financial information relates to
the services the City provides and the activities it performs.156
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
CITY OF LA QUINTA
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
2011 2012 2013 2014 2015
Governmental Activities
Net investment in capital assets 276,787,752$ 534,388,479$ 529,681,342$ 527,614,666$ 523,495,389$
Restricted 107,042,126 26,585,382 49,598,397 53,669,248 62,472,221
Unrestricted 97,009,428 89,832,811 83,399,745 83,907,046 74,362,189
Total Governmental Activities Net Position 480,839,306 650,806,672 662,679,484 665,190,960 660,329,799
Business-Type Activities
Net investment in capital assets 42,491,051 42,105,683 41,741,443 41,354,565 44,118,111
Restricted - - - - -
Unrestricted (4,918,951) (4,745,892) (4,750,604) (4,674,666) (4,892,647)
Total Business-Type Activities Net Position 37,572,100 37,359,791 36,990,839 36,679,899 39,225,464
Primary Government
Net investment in capital assets 319,278,803 576,494,162 571,422,785 568,969,231 567,613,500
Restricted 107,042,126 26,585,382 49,598,397 53,669,248 62,472,221
Unrestricted 92,090,477 85,086,919 78,649,141 79,232,380 69,469,542
Total Primary Government Net Position 518,411,406 688,166,463 699,670,323 701,870,859 699,555,263
Fiscal Year
Source:City of La Quinta
124
TABLE 1
2016 2017 2018 2019 2020
Governmental Activities:
516,499,682$ 517,039,487$ 510,913,594$ 519,221,969$ 509,777,422$ Net investment in capital assets
61,148,731 38,824,860 39,204,789 44,815,499 46,001,248 Restricted
84,439,071 118,125,125 130,950,644 138,584,041 142,418,499 Unrestricted
662,087,484 673,989,472 681,069,027 702,621,509 698,197,169 Total Governmental Activities Net Position
Business-Type Activities:
43,898,784 43,836,868 43,585,880 43,375,536 39,712,955 Net investment in capital assets
- - - - - Restricted
(5,086,906) (5,140,966) (5,203,212) 240,125 3,145,820 Unrestricted
38,811,878 38,695,902 38,382,668 43,615,661 42,858,775 Total Business-Type Activities Net Position
Primary Government:
560,398,466 560,876,355 554,499,474 562,597,505 549,490,377 Net investment in capital assets
61,148,731 38,824,860 39,204,789 44,815,499 46,001,248 Restricted
79,352,165 112,984,159 125,747,432 138,824,166 145,564,319 Unrestricted
700,899,362 712,685,374 719,451,695 746,237,170 741,055,944 Total Primary Government Net Position
125
CITY OF LA QUINTA
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
2011 2012 2013 2014 2015
Expenses
Governmental activities:
General government 11,283,358$ 6,183,712$ 4,511,023$ 4,830,239$ 5,166,732$
Public safety 21,070,458 20,815,454 21,047,691 21,169,423 21,636,149
Planning and development 18,715,283 6,378,352 2,274,541 3,098,015 2,212,013
Community services 4,735,964 5,093,402 4,986,104 4,130,085 5,992,362
Public works 10,757,279 13,288,521 11,803,133 12,610,994 18,116,732
Contribution to other agencies 31,324,064 - - - -
Interest on long-term debt 14,353,359 3,021,496 447,048 405,977 340,716
Total governmental activities expenditures 112,239,765 54,780,937 45,069,540 46,244,733 53,464,704
Business-type activities:
Golf course 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360
Total business-type activities expenditures 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360
116,442,039 58,866,219 49,278,395 51,216,710 58,518,064
Program Revenues
Governmental activities:
Charges for services:
General government 47,696 86,869 38,812 71,042 121,140
Public safety 1,044,399 1,020,822 927,604 1,412,819 1,655,421
Planning and development 74,471 68,470 112,695 595,980 489,589
Community services 210,151 247,397 245,392 1,224,719 307,869
Public works 1,086,771 1,080,744 1,209,438 1,195,703 1,197,069
Operating grants and contributions 13,152,942 11,289,673 28,068,940 14,587,153 16,829,107
Capital grants and contributions 3,157,828 9,990,793 3,981,286 3,536,444
Total governmental activities program revenues 18,774,258 23,784,768 30,602,881 23,068,702 24,136,639
Business-type activities:
Charges for services:
Golf course 3,756,615 3,871,898 3,736,879 3,481,424 3,561,857
Capital grants and contributions - - - - 2,872,122
Total business-type activities program revenues 3,756,615 3,871,898 3,736,879 3,481,424 6,433,979
22,530,873 27,656,666 34,339,760 26,550,126 30,570,618
Net Revenues (Expenditures):
Governmental activities (93,465,507) (30,996,169) (14,466,659) (23,176,031) (29,328,065)
Business-type activities (445,659) (213,384) (471,976) (1,490,553) 1,380,619
(93,911,166) (31,209,553) (14,938,635) (24,666,584) (27,947,446)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property taxes 5,942,353 21,370,476 7,043,604 9,193,753 8,776,491
Tax increment 32,569,795 - - - -
Transient occupancy taxes 4,737,968 5,446,883 5,980,684 6,307,737 6,637,183
Sales tax 7,323,835 7,713,741 7,833,545 8,786,819 8,873,008
Franchise taxes 1,607,829 1,687,440 1,669,476 1,688,263 1,861,453
Business license taxes 285,270 293,592 292,966 307,654 306,087
Other taxes 437,235 428,963 518,778 580,834 530,336
Motor vehicle in lieu, unrestricted 3,515,395 3,173,826 3,157,330 3,291,042 3,486,367
Investment income 4,693,974 1,925,255 1,605,718 2,190,357 1,981,343
Gain (loss) on sale of capital assets - - 28,551 - -
Miscellaneous 3,211,584 268,644 192,509 243,498 296,346
Special Item (interfund loan payoff)
Extraordinary gain/loss on dissolution of RDA - 158,654,715 (2,189,984) (6,402,450) -
Transfers - - - (500,000) (247,739)
Total governmental activities 64,325,238 200,963,535 26,133,177 25,687,507 32,500,875
Business-type activities:
Investment income 2,125 1,075 2,225 1,567 2,043
Gain (loss) on sale of capital assets - - - - -
Miscellaneous - - 100,799 678,046 915,164
Transfers - - - 500,000 247,739
Total business-type activities 2,125 1,075 103,024 1,179,613 1,164,946
Total Primary Government 64,327,363 200,964,610 26,236,201 26,867,120 33,665,821
Changes in Net Position
Governmental activities (29,140,269) 169,967,366 11,666,518 2,511,476 3,172,810
Business-type activities (443,534) (212,309) (368,952) (310,940) 2,545,565
Total Primary Government (29,583,803) 169,755,057 11,297,566 2,200,536 5,718,375
Total Primary Government Expenditures
Total Primary Government Program Revenues
Fiscal Year
Total Net Revenues (Expenditures)
Source:City of La Quinta
For fiscal 2018/19, there is a one-time entry for an interfund loan noted as a 'special item' under governmental activites and
'miscellaneous' under business type activities. This is also dicussed in the Notes to Basic Financial Statements section of the 2018/19
CAFR, Note 19: Special Item.
126
TABLE 2
2016 2017 2018 2019 2020
Expenditures:
Governmental activities:
5,645,004$ 5,565,727$ 8,869,174$ 9,085,863$ 9,877,251$ General government
22,067,603 23,378,824 22,508,088 23,164,976 24,009,725 Public safety
3,359,732 2,882,321 4,352,134 5,913,321 5,845,836 Planning and development
6,214,098 6,584,268 9,231,268 6,202,084 11,362,950 Community services
12,157,245 10,927,160 15,580,975 4,430,519 32,248,031 Public works
- - Contribution to other agencies
343,129 309,463 1,468,971 210,941 98,049 Interest on long-term debt
49,786,811 49,647,763 62,010,610 49,007,703 83,441,842 Total governmental activities expenditures
Business-type activities:
4,373,586 3,965,644 4,318,463 4,558,922 4,148,190 Golf course
4,373,586 3,965,644 4,318,463 4,558,922 4,148,190 Total business-type activities expenditures
54,160,397 53,613,407 66,329,073 53,566,625 87,590,032 Total Primary Government Expenditures
Program Revenues:
Governmental activities:
Charges for services:
192,538 504,127 883,153 516,115 615,348 General government
1,378,704 341,368 367,848 376,249 367,277 Public safety
467,053 564,327 724,499 636,683 799,040 Planning and development
386,824 453,098 442,656 479,542 366,896 Community services
1,134,630 741,703 1,054,902 1,119,816 1,436,362 Public works
12,213,338 6,187,803 4,259,916 5,623,509 7,817,482 Operating grants and contributions
1,076,145 3,316,153 4,455,060 5,462,395 9,613,752 Capital grants and contributions
16,849,232 12,108,579 12,188,034 14,214,310 21,016,157 Total governmental activities program revenues
Business-type activities:
Charges for services:
3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Golf course
- - Capital grants and contributions
3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Total business-type activities program revenues
20,470,727 15,554,919 15,755,752 17,987,706 23,762,905 Total Primary Government Program Revenues
Net Revenues (Expenditures):
(32,937,579) (37,539,184) (49,822,576) (34,793,394) (62,425,685) Governmental activities
(752,091) (519,304) (750,745) (785,526) (1,401,442) Business-type activities
(33,689,670) (38,058,488) (50,573,321) (35,578,920) (63,827,127) Total Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
8,798,296 15,521,335 15,887,015 16,423,843 16,710,544 Property taxes
- - - - - Tax increment
7,835,745 9,433,970 10,752,788 11,230,915 8,079,394 Transient occupancy taxes
9,107,046 10,060,305 18,956,985 20,905,243 19,136,015 Sales tax
1,799,938 1,815,491 1,977,179 2,032,848 1,996,593 Franchise taxes
334,465 365,451 345,187 418,707 378,744 Business license taxes
516,964 585,333 718,472 713,237 662,545 Other taxes
3,651,549 3,813,213 3,941,348 4,086,536 4,290,417 Motor vehicle in lieu, unrestricted
2,390,468 442,710 803,654 5,150,613 5,110,358 Investment income
- - - - - Gain (loss) on sale of capital assets
376,193 460,614 649,566 394,347 1,404,143 Miscellaneous
(5,553,561) - Special Item (interfund loan payoff)
- 7,344,050 3,624,121 993,148 867,792 Extraordinary gain/loss on dissolution of RDA
(115,400) (401,300) (434,000) (450,000) (635,200) Transfers
34,695,264 49,441,172 57,222,315 56,345,876 58,001,345 Total governmental activities
Business-type activities:
4,282 2,028 3,511 14,958 9,356 Investment income
- - - - - Gain (loss) on sale of capital assets
218,823 - - 5,553,561 - Miscellaneous
115,400 401,300 434,000 450,000 635,200 Transfers
338,505 403,328 437,511 6,018,519 644,556 Total business-type activities
35,033,769 49,844,500 57,659,826 62,364,395 58,645,901 Total Primary Government
Changes in Net Position
1,757,685 11,901,988 7,399,739 21,552,482 (4,424,340) Governmental activities
(413,586) (115,976) (313,234) 5,232,993 (756,886) Business-type activities
1,344,099 11,786,012 7,086,505 26,785,475 (5,181,226) Total Primary Government
127
CITY OF LA QUINTA
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(Accrual basis of accounting)
2011 2012 2013 2014 2015
Expenses
General government 11,283,358$ 6,183,712$ 4,511,023$ 4,830,239$ 5,166,732$
Public safety 21,070,458 20,815,454 21,047,691 21,169,423 21,636,149
Planning and development 18,715,283 6,378,352 2,274,541 3,098,015 2,212,013
Community services 4,735,964 5,093,402 4,986,104 4,130,085 5,992,362
Public works 10,757,279 13,288,521 11,803,133 12,610,994 18,116,732
Contribution to other agencies 31,324,064 - - - -
Interest on long-term debt 14,353,359 3,021,496 447,048 405,977 340,716
Total Governmental Activities Expenditures 112,239,765 54,780,937 45,069,540 46,244,733 53,464,704
Program Revenues
Charges for services:
General government 47,696 86,869 38,812 71,042 121,140
Public safety 1,044,399 1,020,822 927,604 1,412,819 1,655,421
Planning and development 74,471 68,470 112,695 595,980 489,589
Community services 210,151 247,397 245,392 1,224,719 307,869
Public works 1,086,771 1,080,744 1,209,438 1,195,703 1,197,069
Operating grants and contributions 13,152,942 11,289,673 28,068,940 14,587,153 16,829,107
Capital grants and contributions 3,157,828 9,990,793 4,115,238 3,981,286 3,536,444
18,774,258 23,784,768 34,718,119 23,068,702 24,136,639
Net Revenues (Expenditures)(93,465,507) (30,996,169) (10,351,421) (23,176,031) (29,328,065)
General Revenues and Other Changes in Net Position
Taxes:
Property taxes 5,942,353 21,370,476 7,043,604 9,193,753 8,776,491
Tax increment 32,569,795 - - - -
Transient occupancy taxes 4,737,968 5,446,883 5,980,684 6,307,737 6,637,183
Sales tax 7,323,835 7,713,741 7,833,545 8,786,819 8,873,008
Franchise tax 1,607,829 1,687,440 1,669,476 1,688,263 1,861,453
Business license taxes 285,270 293,592 292,966 307,654 306,087
Other tax 437,235 428,963 518,778 580,834 530,336
Motor vehicle in lieu, unrestricted 3,515,395 3,173,826 3,157,330 3,291,042 3,486,367
Investment income 4,693,974 1,925,255 1,605,718 2,190,357 1,981,343
Gain (loss) on sale of capital assets - - 28,551 - -
Miscellaneous 3,211,584 268,644 192,509 243,498 296,346
Special item (interfund loan payoff)
Extraordinary gain/loss on dissolution of RDA - 158,654,715 (2,189,984) (6,402,450) -
Transfers - - - (500,000) (247,739)
Total Governmental Activities 64,325,238 200,963,535 26,133,177 25,687,507 32,500,875
Changes in Net Position (29,140,269) 169,967,366 15,781,756 2,511,476 3,172,810
Fiscal Year
Total Governmental Activities Program Revenues
Source:City of La Quinta
128
TABLE 3
2016 2017 2018 2019 2020
Expenditures:
5,645,004$ 5,565,727$ 8,869,174$ 9,085,863$ 9,877,251$ General government
22,067,603 23,378,824 22,508,088 23,164,976 24,009,725 Public safety
3,359,732 2,882,321 4,352,134 5,913,321 5,845,836 Planning and development
6,214,098 6,584,268 9,231,268 6,202,084 11,362,950 Community services
12,157,245 10,927,160 15,580,975 4,430,519 32,248,031 Public works
- - - - - Contribution to other agencies
343,129 309,463 1,468,971 210,941 98,049 Interest on long-term debt
49,786,811 49,647,763 62,010,610 49,007,703 83,441,842 Total Governmental Activities Expenditures
Program Revenues:
Charges for services:
192,538 504,127 883,153 516,115 615,348 General government
1,378,704 341,368 367,848 376,249 367,277 Public safety
467,053 564,327 724,499 636,683 799,040 Planning and development
386,824 453,098 442,656 479,542 366,896 Community services
1,134,630 741,703 1,054,902 1,119,816 1,436,362 Public works
12,213,338 6,187,803 4,259,916 5,623,509 7,817,482 Operating grants and contributions
1,076,145 3,316,153 4,455,060 5,462,395 9,613,752 Capital grants and contributions
16,849,232 12,108,579 12,188,034 14,214,310 21,016,157
Total Governmental Activities Program
Revenues
(32,937,579) (37,539,184) (49,822,576) (34,793,394) (62,425,685) Net Revenues (Expenditures)
General Revenues and Other Changes in
Net Position:
Taxes:
8,798,296 15,521,335 15,887,015 16,423,843 16,710,544 Property taxes
- - - - - Tax increment
7,835,745 9,433,970 10,752,788 11,230,915 8,079,394 Transient occupancy taxes
9,107,046 10,060,305 18,956,985 20,905,243 19,136,015 Sales tax
1,799,938 1,815,491 1,977,179 2,032,848 1,996,593 Franchise tax
334,465 365,451 345,187 418,707 378,744 Business license taxes
516,964 585,333 718,472 713,237 662,545 Other tax
3,651,549 3,813,213 3,941,348 4,086,536 4,290,417 Motor vehicle in lieu, unrestricted
2,390,468 442,710 803,654 5,150,613 5,110,358 Investment income
376,193 460,614 649,566 394,347 1,404,143 Gain (loss) on sale of capital assets
- - - - - Miscellaneous
(5,553,561) - Special item (interfund loan payoff)
- 7,344,050 3,624,121 993,148 867,792 Extraordinary gain/loss on dissolution of RDA
(115,400) (401,300) (434,000) (450,000) (635,200) Transfers
34,695,264 49,441,172 57,222,315 56,345,876 58,001,345 Total Governmental Activities
1,757,685 11,901,988 7,399,739 21,552,482 (4,424,340) Changes in Net Position
129
CITY OF LA QUINTA
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
(Accrual basis of accounting)
2011 2012 2013 2014 2015
Expenses
Golf course 4,202,274$ 4,085,282$ 4,208,855$ 4,971,977$ 5,053,360$
Total Business-Type Activities Expenditures 4,202,274 4,085,282 4,208,855 4,971,977 5,053,360
Program revenues
Charges for services:
Golf course 3,756,615 3,871,898 3,736,879 3,481,424 3,561,857
Capital grants and contributions - - - - 2,872,122
3,756,615 3,871,898 3,736,879 3,481,424 6,433,979
Net Revenues (Expenditures)(445,659) (213,384) (471,976) (1,490,553) 1,380,619
General Revenues and Other Changes in Net Position
Investment income 2,125 1,075 2,225 1,567 2,043
Gain (loss) on sale of capital assets - - - - -
Miscellaneous - - 100,799 678,046 915,164
Transfers - - - 500,000 247,739
Capital contributions - - - - -
Total Business-Type Activities 2,125 1,075 103,024 1,179,613 1,164,946
Changes in Net Position (443,534) (212,309) (368,952) (310,940) 2,545,565
Total Business-Type Activities Program Revenues
Fiscal Year
Source:City of La Quinta
130
TABLE 4
2016 2017 2018 2019 2020
Expenditures:
4,373,586$ 3,965,644$ 4,318,463$ 4,558,922$ 4,148,190$ Golf course
4,373,586 3,965,644 4,318,463 4,558,922 4,148,190 Total Business-Type Activities Expenditures
Program revenues:
Charges for services:
3,621,495 3,446,340 3,567,718 3,773,396 2,746,748 Golf course
- - - - - Capital grants and contributions
3,621,495 3,446,340 3,567,718 3,773,396 2,746,748
(752,091) (519,304) (750,745) (785,526) (1,401,442) Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
4,282 2,028 3,511 14,958 9,356 Investment income
- - - - - Gain (loss) on sale of capital assets
218,823 - - 5,553,561 - Miscellaneous
115,400 401,300 434,000 450,000 635,200 Transfers
- - - - - Capital contributions
338,505 403,328 437,511 6,018,519 644,556 Total Business-Type Activities
(413,586) (115,976) (313,234) 5,232,993 (756,886) Changes in Net Position
Total Business-Type Activities Program Revenues
131
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2011 2012 2013 2014 2015
General fund
Nonspendable:
Prepaid costs 23,260$ 27,481$ 11,786$ 1,500$ 15,653$
Land held for resale 8,320,000 8,320,000 8,320,000 8,320,000 8,320,000
Advances to other funds 15,373,104 15,417,929 15,509,691 15,163,183 14,943,098
Deposits 9,967 118,516 4,830 4,830 33,985
Due from Other Governments - - 41,378,966 34,976,516 26,715,575
Restricted for:
Debt service 169,631 173,426 - - -
Section 115 Trust (Note 11)
Committed:
Emergency Reserve(2)18,018,595 17,516,295 16,034,995 16,034,995 15,372,600
Natural Disaster Reserve(2)
Economic Disaster Reserve(2)
Post retirement health benefits(3)1,258,059 1,523,401 1,523,401 1,523,401 1,523,401
Capital Replacement Reserve(2)- - 2,848,737 1,507,429 1,727,390
Cash Flow Reserve(2)- - - 2,836,820 3,843,150
Pension Trust(4)- - - - -
Carryovers - - - 356,438 476,400
Other - - - - -
Assigned:
Continuing appropriations 1,768,494 1,041,172 1,013,533 209,000 -
Public Safety (Note 13b)- - - - -
Sales Tax Reserve (Note 13b)- - - - -
Capital Projects (Note 13b)- - - - -
Unassigned 48,140,444 47,737,861 5,926,651 10,699,641 13,837,312
Total general fund 93,081,554 91,876,081 92,572,590 91,633,753 86,808,564
All other governmental funds
Nonspendable:
Prepaid costs 10,563 12,875 10,310 - -
Notes and loans 2,081,614 2,065,611 2,062,589 - -
Advances to other funds 4,569,188 - - - -
Deposits 6,000 13,600 13,600 - -
Restricted:
Planning and development projects 34,018,930 10,767,199 3,730,533 5,970,006 13,108,499
Public safety 96,364 245,187 258,968 274,274 301,843
Community services 10,248,314 11,162,057 11,626,441 12,459,516 10,711,704
Public works 396,355 145,823 262,754 1,571,163 1,129,697
Capital Projects 58,111,106 4,089,156 1,392,581 1,590,168 3,873,699
Debt service 4,001,426 2,534 2,234 - -
Assigned:
Continuing appropriations - - - - -
Unassigned (13,250,398) (13,248,593) (13,179,196) (12,370,462) (12,703,744)
Total all other governmental funds 100,289,462 15,255,449 6,180,814 9,494,665 16,421,698
Total Governmental Funds 193,371,016 107,131,530 98,753,404 101,128,418 103,230,262
Fiscal Year
Notes:
(1)In Fiscal Year 2016-17, the City recognized property tax held by the County of Riverside as available to fund current obligations and as such the General Fund fund balance was
adjusted up by 8,569,043 to 98,565,571. See Note 19 for FY 2016-17
(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, and Capital Replacement and Pension Trust were added.
(3) In Fiscal Year 2017-18 the City opened a trust for Other Post Employment Benefits (OPEB), and this reserve was deposited into the trust. See Note 10.
(4) In Fiscal Year 2018-19 the City opened a trust for Pension Benefits, and this reserve was deposited into the trust. See Note 11.
Source:City of La Quinta
132
TABLE 5
2016(1)2017 2018 2019 2020
General fund:
Nonspendable:
204,589$ 10,578$ 90,657$ 37,182$ 14,065$ Prepaid costs
8,320,000 8,320,000 8,320,000 5,730,990 5,403,652 Land held for resale
14,974,800 15,022,660 14,954,085 - - Advances to other funds
- - - - - Deposits
25,105,681 29,154,040 29,611,707 27,915,770 26,069,742 Due from Other Governments
Restricted for:
- - - - - Debt service
6,540,000 10,249,738 Section 115 Trust (Note 11)
Committed:
15,576,000 16,534,000 - - - Emergency Reserve(2)
7,400,000 10,000,000 10,000,000 Natural Disaster Reserve(2)
8,140,000 11,000,000 6,800,000 Economic Disaster Reserve(2)
1,523,400 1,523,400 - - - Post retirement health benefits(3)
2,302,000 - 5,000,000 5,000,000 6,540,000 Capital Replacement Reserve(2)
3,894,000 4,134,000 5,000,000 5,000,000 5,000,000 Cash Flow Reserve(2)
- - 2,000,000 - - Pension Trust(4)
4,274,046 120,000 2,186,500 745,300 1,778,800 Carryovers
- - - - - Other
Assigned:
- - - - - Continuing appropriations
- 9,371,699 9,754,327 9,864,841 10,491,654 Public Safety (Note 13b)
- - 5,169,970 7,721,975 8,736,219 Sales Tax Reserve (Note 13b)
- 6,322,570 4,996,815 11,853,162 13,155,144 Capital Projects (Note 13b)
13,822,012 16,949,526 19,199,506 16,228,627 19,094,651 Unassigned
98,565,571 107,462,473 121,823,567 117,637,847 123,333,665 Total general fund
All other governmental funds:
Nonspendable:
8,422 10,349 - 386 2,875 Prepaid costs
- - - - - Notes and loans
- - - - - Advances to other funds
- - - - - Deposits
Restricted:
18,211,200 22,664,093 22,607,600 22,996,435 23,680,641 Planning and development projects
189,988 83,506 342,919 1,391,721 1,607,101 Public safety
9,872,124 10,040,222 10,016,652 13,775,710 14,376,472 Community services
1,250,827 1,546,505 2,033,627 2,667,401 3,208,072 Public works
3,597,221 4,490,534 4,203,991 3,904,492 3,128,962 Capital Projects
- - - Debt service
Assigned:
- - - - - Continuing appropriations
(11,655,344) (11,423,008) (11,347,062) (1,852,211) (5,175,243) Unassigned
21,474,438 27,412,201 27,857,727 42,883,934 40,828,880 Total all other governmental funds
120,040,009 134,874,674 149,681,294 160,521,781 164,162,545 Total Governmental Funds
s and as such the General Fund fund balance was
category names. Emergency Reserves are now split into Natural
Cash Flow Reserve, and Capital Replacement and Pension Trust were added.
e trust. See Note 10.
133
CITY OF LA QUINTA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2011 2012 2013 2014 2015
Revenues
Taxes 88,498,457$ 53,632,023$ 23,506,679$ 27,192,089$ 26,678,471$
Assessments 956,048 950,292 954,058 951,181 940,221
Licenses and permits 547,071 482,831 566,510 953,540 1,356,978
Intergovernmental 19,005,643 15,875,582 15,464,942 16,506,666 15,702,943
Charges for services 501,418 635,111 625,813 1,238,277 1,341,438
Use of money and property 4,670,732 1,914,518 1,582,762 2,175,048 1,950,957
Contributions, fines, and forfeitures 327,751 303,773 18,377,253 838,972 1,956,452
Developer participation 945,805 903,144 1,226,825 3,059,254 2,803,681
Miscellaneous 319,763 276,327 491,267 575,001 580,843
Total Revenues 115,772,688 74,973,601 62,796,109 53,490,028 53,311,984
Expenditures
Current:
General government 10,885,519 4,881,922 4,587,888 4,068,827 5,050,425
Public safety 19,826,372 19,669,517 20,168,038 21,189,086 21,664,472
Planning and development 8,460,420 4,314,646 27,514,768 1,748,477 2,097,525
Community services 4,147,758 4,086,686 4,411,536 4,011,432 4,798,123
Public works 4,808,060 6,192,733 5,067,370 4,617,050 5,283,309
Capital projects 21,287,775 13,335,989 8,622,783 7,974,747 11,097,186
Debt service:
Principal retirement 7,011,261 7,066,726 556,871 558,019 594,383
Interest and fiscal charges 15,037,919 6,701,079 437,678 411,010 348,334
Payment to bond escrow - - - - -
Payments under pass-through obligations 35,607,089 16,755,441 - - -
Total Expenditures 127,072,173 83,004,739 71,366,932 44,578,648 50,933,757
(11,299,485) (8,031,138) (8,570,823) 8,911,380 2,378,227
Other financing sources (uses):
Issuance of tax allocation bonds 6,000,000 - - - -
Issuance of revenue bonds 28,850,000 - - - -
Transfers in 61,657,034 12,554,752 29,841,053 4,201,763 12,037,331
Transfers out (61,652,479) (12,580,120) (29,841,053) (4,335,679) (12,322,714)
Other debts issued - - - - -
Capital leases - - 71,045 - 9,000
Proceeds from sale of capital assets 8,683,850 875,275 121,652 - -
Total Other Financing Sources (Uses)43,538,405 849,907 192,697 (133,916) (276,383)
Extraordinary gain/loss on dissolution of RDA - (79,058,255) - (6,402,450) -
Special item (interfund loan payoff)- - - - -
Net Change in Fund Balances 32,238,920 (86,239,486) (8,378,126) 2,375,014 2,101,844
53.0%43.7%1.6%2.6%2.2%
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 and Note 4, Capital Assets.
134
TABLE 6
2016 2017 2018 2019 2020
Revenues:
28,057,989$ 41,832,117$ 44,931,250$ 48,462,493$ 44,881,038$ Taxes
944,050 953,699 950,541 961,633 957,017 Assessments
1,161,820 1,118,911 1,394,820 1,555,026 1,913,519 Licenses and permits
14,960,676 4,870,334 12,555,259 14,075,980 17,107,595 Intergovernmental
1,332,541 1,021,336 1,279,864 1,170,825 1,179,592 Charges for services
7,475,742 4,659,301 2,388,683 4,824,651 5,219,088 Use of money and property
28,459 348,345 375,390 375,491 665,193 Contributions, fines, and forfeitures
1,441,075 1,042,568 1,534,628 2,231,471 1,863,587 Developer participation
992,282 289,047 1,196,057 2,425,675 1,371,095 Miscellaneous
56,394,634 56,135,658 66,606,492 76,083,245 75,157,724 Total Revenues
Expenditures
Current:
5,267,024 5,845,197 7,737,111 10,129,408 7,732,495 General government
22,125,962 23,377,755 22,508,088 23,164,976 24,009,725 Public safety
3,294,259 2,549,779 4,310,589 6,415,466 5,436,281 Planning and development
4,983,038 4,626,401 5,236,083 5,944,200 6,159,707 Community services
4,101,210 4,025,958 4,146,135 4,219,461 5,421,606 Public works
7,209,874 6,859,428 9,015,861 9,096,460 23,150,511 Capital projects
Debt service:
632,615 651,625 666,988 650,000 - Principal retirement
346,137 307,600 1,460,371 178,080 28,868 Interest and fiscal charges
- - - - - Payment to bond escrow
- - - - - Payments under pass-through obligations
47,960,119 48,243,743 55,081,226 59,798,051 71,939,193 Total Expenditures
8,434,515 7,891,915 11,525,266 16,285,194 3,218,531
Other financing sources (uses):
- - - - - Issuance of tax allocation bonds
- - - - - Issuance of revenue bonds
6,420,538 21,503,514 7,432,340 12,942,596 16,467,409 Transfers in
(6,614,349) (21,904,814) (7,775,107) (13,826,890) (16,912,971) Transfers out
- - - - Other debts issued
- - - - Capital leases
- - - - Proceeds from sale of capital assets
(193,811) (401,300) (342,767) (884,294) (445,562) Total Other Financing Sources (Uses)
- 7,344,050 3,624,121 993,148 867,792 Extraordinary gain/loss on dissolution of RDA
- - - (5,553,561) - Special item (interfund loan payoff)
8,240,704 14,834,665 14,806,620 10,840,487 3,640,761 Net Change in Fund Balances
2.4% 2.45% 3.26%2.03%0.06%
Debt Service as a Percentage of Noncapital
Expenditures (1)
Excess (Deficiency) of Revenues Over (Under)
Expenditures
135
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CITY OF LA QUINTA TABLE 7
Tax Revenue by Source
Last Ten Fiscal Years
Fiscal
Year
Property
Tax (2)
Tax
Increment
(1)
Transient
Occupancy
Tax Sales Tax
Franchise
Tax
Business
License
Tax
Document
Transfer
Tax Total
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
2019 16,423,843 - 11,230,915 20,905,243 2,032,848 418,707 713,237 51,724,793
2020 16,710,544 - 8,079,394 19,136,015 1,996,593 378,744 662,545 46,963,835
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 the agency
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 is included in the property tax number.
Source:City of La Quinta
$0
$10
$20
$30
$40
$50
$60
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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
136
CITY OF LA QUINTA TABLE 8
Top 25 Bradley-Burns Sales Tax Producers
Current Year and Ten Years Ago
(in dollars)
Arco AM/PM Service Stations
Best Buy Electronics/Appliance Stores
Circle K Service Stations
Cliffhouse Fine Dining BevMo Convenience Stores/Liquor
Costco Discount Dept. Stores
G&M Oil Service Stations Circle K Service Stations
Genesis/Hyundai of La Quinta New Motor Vehicle Dealers
Hobby Lobby Specialty Stores
Home Depot Building Materials Hyundai of La Quinta New Motor Vehicle Dealers
In N Out Burgers Quick-Service Restaurants
Kohl's Department Stores Kohl's Department Stores
La Quinta Chevrolet & Cadillac New Motor Vehicle Dealers La Quinta Resort & Club Hotels-Liquor
La Quinta Resort & PGA West Hotels-Liquor Lowe's Building Materials
Lowe's Building Materials Marshalls Family Apparel
Ross Family Apparel
McDonald's Quick-Service Restaurants Staples Office Supplies/Furniture
Ross Family Apparel Stater Bros Grocery Stores
Stater Bros Grocery Stores Stein Mart Department Stores
Target Discount Dept. Stores Target Discount Dept. Stores
TJ Maxx Family Apparel Torre Nissan New Motor Vehicle Dealers
Torre Nissan New Motor Vehicle Dealers USA Gas Service Stations
Tower Mart Service Stations Verizon Wireless Electronics/Appliance Stores
Verizon Wireless Electronics/Appliance Stores Vintners Shell Station Service Stations
Walmart Supercenter Discount Dept. Stores
West Coast Direct Marketing Business Services
68.00%73.14%
Fiscal Year 2010-11
Electronics/Appliance Stores
Arco AM/PM
Bed Bath & Beyond
Best Buy
Service Stations
Home Furnishings
Business Name (1)Business Category
Home Depot Building Materials
New Motor Vehicle Dealers
Discount Dept. Stores
Service Stations
Chevrolet Cadillac of La Quinta
Costco
G & M Oil
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
Discount Dept. Stores
Marshalls Family Apparel
Fiscal Year 2019-20
Business CategoryBusiness Name (1)
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 Top 25 business listings by local Measure G, see next page. Sales tax
revenue chart includes total remitted for both.
$0
$5
$10
$15
$20
$25
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Combined Sales Tax Revenue
(in millions)
137
CITY OF LA QUINTA TABLE 8
Top 25 Measure G Sales Tax Producers
Current Year and Ten Years Ago
(in dollars)
Amazon Com Services Inc General Merchandise
Amazon Fulfillment Services General Merchandise
Arco AM PM Service Stations
Best Buy Electronics/Appliance Stores
Bestbuy Com Electronics/Appliance Stores
Circle K Service Stations
Costco Discount Dept. Stores
Dept. of Motor Vehicles Allocation Used Automotive Dealers
Desert European Motor Cars New Motor Vehicle Dealers
Home Depot Building Materials
La Quinta Chevolet & Cadillac New M.
Mathis Brothers Furniture Home Furnishings
Stater Bros Grocery Stores
Tower Mart Service Stations
Vons Grocery Stores
47.96%
Fiscal Year 2019-20 Fiscal Year 2010-11
Business Name (1)Business Category Business Name Business Category
Family Apparel
In N Out Burger Quick-Service Restaurants
Kohl's Department Stores
La Quinta Resort & PGA West Hotels-Liquor
Percent of Fiscal Year Total Paid by Top 25 Accounts:
Measure G was passed in November 2016 with implementation on
April 1, 2017. Ten-year is data not available.
Verizon Wireless Electronics/Appliance Stores
Walmart Supercenter Discount Dept. Stores
Target Discount Dept Stores
TJ Maxx Family Apparel
Ross Family Apparel
Lowe's Building Materials
Marshalls
Notes:
(1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account.
Source:HDL, Coren & Cone
138
CITY OF LA QUINTA
Taxable Sales by Category (1)
Last Ten Calendar Years
(in thousands)
2010 2011 2012 2013 2014
22,143$ 23,223$ 24,430$ 25,741$ 25,461$
206,153 211,249 220,970 223,324 216,871
25,351 25,197 25,854 26,394 25,748
79,646 86,433 94,859 97,662 101,647
60,740 62,879 65,445 68,606 73,087
43,566 58,938 62,668 72,839 84,826
46,059 54,342 56,001 52,093 47,541
94,532 97,477 99,028 100,811 101,721
120,291 132,417 130,421 142,049 150,746
698,481 752,155 779,676 809,519 827,648
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 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
29%
Food stores
4%
Eating and drinking places
11%
Building materials
9%
Auto dealers and supplies
6%
Service stations
7%
Other retail stores
14%
All other outlets
17%
Taxable Sales
Calendar Year 2010
139
TABLE 9
2015 2016 2017 2018 2019
25,115$ 26,280$ 31,822$ 34,508$ 33,937$
208,189 206,808 222,767 232,147 235,969
22,845 25,359 25,964 26,126 26,191
106,216 115,974 117,064 122,255 132,184 Eating and drinking places
75,658 78,299 83,383 86,569 89,036
87,440 83,010 81,264 82,702 85,401 Auto dealers and supplies
40,777 34,566 37,558 42,164 42,998
105,284 107,648 104,834 114,980 111,239
155,173 172,135 180,360 210,360 220,260
826,697 850,079 885,016 951,811 977,215 Total
Service stations
Other retail stores
All other outlets
Apparel stores
General merchandise
Food stores
Building materials
Apparel stores
3%
General merchandise
24%
Food stores
3%
Eating and drinking
places
14%
Building materials
9%
Auto dealers and
supplies
9%
Service stations
4%
Other retail stores
11%
All other outlets
23%
Taxable Sales
Calendar Year 2019
140
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)
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
2019 11,869,224,686 1,288,839,436 61,861,498 85,526,307 95,584,154 (49,298,200) 13,351,737,881 1.0000
2020 12,394,924,833 1,292,239,063 91,242,090 139,850,650 110,001,629 (47,938,800) 13,980,319,465 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. Starting in 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 the
property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions,
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 assessed
valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations
described 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 labeled agriculture was formerly "industrial".
(5)Prior to 2015, this column also included Exempt Property Valuations
Source:: Cal Muni; 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
$14,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Taxable Assessed Value
(in millions)
141
CITY OF LA QUINTA TABLE 11
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2011 (1)2012 (1)2013 (1)2014 (1)2015 (1)2016 (1)2017 (1)2018 2019 2020 2011 (2)2012 (2)2010 (2)2011 (2)
Direct Rates:
City of La Quinta 0.0734 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 0.0646 0.0646 0.0049 0.0524 0.0000 0.0019
ERAF Share of La Quinta General Fund 0.0113 0.0113
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 0.5310 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 0.0000 0.0000 0.3174 0.3059
County of Riverside 0.2318 0.1957 0.1958 0.1958 0.1958 0.1958 0.1958 0.1958 0.0978 0.0978 0.2471 0.2683 0.2537 0.2511
ERAF Share of County 0.0980 0.0980
County Free Library 0.0280 0.0252 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0282 0.0294 0.0280 0.0286
County Structure Fire Protection 0.0602 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0607 0.0633 0.0603 0.0616
Coachella Valley Unified School District 0.0000 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.0182 0.0000 0.0000 0.0000
Desert Sands Unified School 0.3716 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0637 0.3905 0.1859 0.1930
Desert Community College District 0.0772 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0166 0.0812 0.0386 0.0401
Riverside County Office of Education 0.0420 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0038 0.0442 0.0210 0.0218
Riverside County Regional Park & Open Space0.0000 0.0040 0.0039 0.0039 0.0039 0.0039 0.0040 0.0040 0.0040 0.0040 0.0000 0.0000 0.0000 0.0000
CV Public Cemetery 0.0035 0.0032 0.0031 0.0031 0.0031 0.0031 0.0031 0.0031 0.0032 0.0032 0.0003 0.0037 0.0000 0.0001
CV Mosquito & Vector Control 0.0141 0.0127 0.0127 0.0127 0.0127 0.0126 0.0126 0.0126 0.0126 0.0127 0.0112 0.0148 0.0141 0.0141
Desert Recreation District 0.0213 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0019 0.0223 0.0053 0.0059
Coachella Valley Water District 0.0281 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0124 0.0295 0.0757 0.0740
CV Resource Conservation 0.0004 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0000 0.0004 0.0000 0.0000
CVWD Improvement District 1 0.0131 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0000 0.0000 0.0000 0.0005
CVWD Storm Water Unit 0.0355 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0000 0.0000 0.0000 0.0014
Total Direct Rate (3)1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Tax Rate Area 020-005 020-005 020-005 020-005 020-005 020-005 020-160 020-160 020-160 020-160 020-089 020-089 020-144 020-144
Coachella Valley Unified School District 0.0933 0.0749 0.0797 0.1492 0.1492 0.1322 0.1660 0.1761 0.1495 0.1488 0.0933 0.0749 0.0725 0.0933
Desert Sands Unified School 0.1004 0.1147 0.1116 0.1095 0.1098 0.1092 0.0860 0.0725 0.0742 0.0738 0.1004 0.1147 0.0811 0.1004
Coachella Valley Water District 0.0860 0.0800 0.0800 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.0860 0.0800 0.0660 0.0860
Desert Community College District 0.0200 0.0200 0.0200 0.0200 0.0233 0.0209 0.0204 0.0403 0.0398 0.0398 0.0200 0.0200 0.0200 0.0200
Total Overlapping Rate 0.2996 0.2895 0.2912 0.3787 0.3823 0.3622 0.3724 0.3889 0.3635 0.3624 0.2996 0.2895 0.2395 0.2996
Total Direct and Overlapping Rate 1.2996 1.2895 1.2912 1.3787 1.3823 1.3622 1.3724 1.3889 1.3635 1.3625 1.2997 1.2895 1.2395 1.2996
Overlapping Rates (4) :
City Non-Project Area
Redevelopment
Project Area 1
Redevelopment
Project Area 2
Notes:
(1)Direct rate from Tax Rate Area (TRA) 020-160 and overlapping rates provided by Hdl Coren & Cone, data source Riverside County Assessor 2009/10-2019/20
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
142
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
1 177,449,136$ 1.27%- 0.00%
2 49,263,649 0.35% 6 42,230,554$ 0.39%
3 44,863,680 0.32%- 0.00%
4 41,237,741 0.29% 4 63,614,331 0.58%
Sunrise LQ LLC 5 36,027,297 0.26%- 0.00%
6 35,758,331 0.26%- 0.00%
7 31,705,932 0.23%- 0.00%
Lennar Homes of California Inc 8 30,866,612 0.22%- 0.00%
9 29,285,181 0.21%- 0.00%
Health Care REIT Inc.10 26,934,781 0.19%- 0.00%
- - 1 144,680,362 1.32%
MSR Resort Golf Course - - 3 71,369,895 0.65%
Coral Option I - 5 42,259,153 0.39%
- - 10 31,884,196 0.29%
Griffin Ranch - - 8 36,725,785 0.34%
WRM La Quinta - 7 37,689,411 0.34%
Village Resort - - 9 34,403,510 0.31%
TD Desert Development - 2 105,099,843 0.96%
Total 503,392,340$ 3.60%609,957,040 5.58%
ND La Quinta Partners
HJ CG Partners LLC
KSL Desert Resort
Walmart Real Estate Business Trust
Taxpayer
Fiscal Year 2010-11
Town and Country Partners
Hawthorn IL Prop. Co.
Fiscal Year 2019-20
LQR Properties
Inland American La Quinta Pavilion
East of Madison
(1) Taxable valuations include secured and unsecured
Source:
HdL Coren & Cone; Riverside County Assessor 2019/20 and 2010/11 Combined Tax Rolls and the SBE Non-Unitary Tax Roll (Preliminary)
LQR Properties
Inland American La
Quinta Pavilion
Hawthorn IL Prop. Co.
East of Madison
Sunrise LQ LLC
Town and Country
Partners
Walmart Real Estate
Business Trust
Lennar Homes of
California Inc
HJ CG Partners LLC
Principal Property Tax Payers
(FY 2016-17)
143
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
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%
2019 6,934,311 6,736,814 97.15%126,876 6,863,690 98.98%
2020 7,336,308 6,777,777 92.39%156,792 6,934,570 94.52%
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.
(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
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Property Tax Collections
(in millions)
144
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type (1)
Last Ten Fiscal Years
(in dollars)
2011 2012 2013 2014 2015
-$ -$ -$ -$ -$
78,253 40,090 71,045 129,063 103,869
729,480 - 702,105 686,345 668,933
1,503,433 - 1,441,096 1,405,755 1,367,344
Notes Payable- Eisenhower Drive Property - - - - -
1,255,243 - - - -
1,000,000 - - - -
- - - - -
126,925,000 - - - -
11,555,000 - - - -
81,150,000 - - - -
28,850,000 - - - -
4,340,000 3,895,000 3,425,000 2,930,000 2,405,000
(1,115,799) - - - -
Total Governmental 256,270,610 3,935,090 5,639,246 5,151,163 4,545,146
Capital Leases 286,097 169,084 43,736 - -
Total Business-Type Activities 286,097 169,084 43,736 - -
Total Primary Government 256,556,707 4,104,174 5,682,982 5,151,163 4,545,146
Population - State Department of Finance January 1 37,836 38,075 38,401 39,032 39,694
Number of Households 23,489 23,528 23,612 23,871 24,150
Median Household Income 104,410 104,045 111,077 109,365 97,526
Percentage of Personal Income 10.46% 0.17% 0.22% 0.20% 0.19%
Debt Per Capita 6,781 108 148 132 115
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
145
TABLE 14
2016 2017 2018 2019 2020
-$ -$ -$ -$ -$
155,395 530,163 667,035 757,971 761,791
649,698 628,448 - - -
1,325,596 1,280,221 - - -
- 2,250,000 1,125,000 - - Notes Payable- Eisenhower Drive Property
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
1,850,000 1,265,000 650,000 - -
- - - - -
3,980,689 5,953,832 2,442,035 757,971 761,791 Total Governmental
- - - - - Capital Leases
- - - - - Total Business-Type Activities
3,980,689 5,953,832 2,442,035 757,971 761,791 Total Primary Government
39,977 40,677 41,204 40,389 40,660 Population - State Department of Finance January 1
24,432 24,544 24,643 24,764 24,957 Number of Households
99,157 104,749 107,447 117,802 120,097 Median Household Income
0.16%0.23%0.09%0.03%0.03% Percentage of Personal Income
100 146 59 19 19 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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
6,781
108 148 132 115 100 146 59 19 19
Debt Per Capita
146
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
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 - - 3,425,000 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
2019 - - - - 0.00%-
2020 - - - - 0.00%-
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%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2.33%
0.04%0.03%0.03%0.02%0.02%0.01%0.01%0.00% 0.00%
General Bonded Debt as a Percent of Assessed Value
147
CITY OF LA QUINTA TABLE 16
Direct and Overlapping Debt
June 30, 2020
(in dollars)
Total Assessed Valuation (1)14,028,258,265$
Overlapping Debt (3)
16.55%337,130,000$ 55,784,901$
51.27%244,321,163 125,253,687
20.09%380,450,000 76,428,601
88.91%815,000 724,633
87.28%1,145,000 999,391
259,191,213
4.74%759,807,924 36,014,896
4.74%938,825,000 44,500,305
51.27%36,170,000 18,542,912
20.09%30,155,000 6,057,838
26.52%158,806 42,115
Total Overlapping General Fund Debt 105,158,066
Overlapping Tax Increment Debt
Successor Agencies 62.02%512,468,028 317,849,469
Total Overlapping Tax Increment Debt
Total Gross Overlapping Debt 682,198,748
Less: Riverside County Supported Obligations -
Total Net Overlapping Debt 682,198,748
761,791$ 761,791
761,791
682,960,539$
DSUSD Community Facilities District No. 1
Total Net Combined Direct and Overlapping Debt
Coachella Valley Water District Assessment Districts
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
6/30/20
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.
148
CITY OF LA QUINTA
Legal Debt Margin Information
Last Ten Fiscal Years
(in dollars)
2011 2012 2013 2014 2015
Assessed valuation (1)10,870,790,733$ 10,331,431,958$ 10,274,998,112$ 10,726,752,603$ 11,369,346,292$
Conversion Percentage 25%25%25%25%25%
Adjusted assessed valuation(2)2,717,697,683 2,582,857,990 2,568,749,528 2,681,688,151 2,842,336,573
Debt limit percentage (2)15%15%15%15%15%
Debt limit 407,654,652 387,428,698 385,312,429 402,253,223 426,350,486
- - - - -
Legal debt margin 407,654,652$ 387,428,698$ 385,312,429$ 402,253,223$ 426,350,486$
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 limit
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 gross assessed valuation or property. However, this provision was enacted when assessed valuation was based on 25% of
market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent
change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal
year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted
by the State. This is the equivalent of 3.75% of the full assessed value.
(3)The City of La Quinta has no general bonded indebtedness.
149
TABLE 17
2016 2017 2018 2019 2020
11,930,906,878$ 12,457,435,999$ 12,867,519,997$ 13,351,737,881$ 13,980,319,465$ Assessed valuation (1)
25%25%25%25%25%
2,982,726,720 3,114,359,000 3,216,879,999 3,337,934,470 3,495,079,866
15%15%15%15%15%Debt limit percentage (2)
447,409,008 467,153,850 482,532,000 500,690,171 524,261,980 Debt limit
Total net debt applicable to
limit
- - - - - General obligation bonds (3)
447,409,008$ 467,153,850$ 482,532,000$ 500,690,171$ 524,261,980$ 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
150
CITY OF LA QUINTA TABLE 18
Pledged-Revenue Coverage (1)
Last Ten Fiscal Years
(in dollars)
Principal Interest
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
2019 668,038 - 668,038 650,000 18,038 1.00
2020 - - - - - -
.
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) .
151
CITY OF LA QUINTA TABLE 19
Demographic and Economic Statistics
Last Ten Calendar Years
Sources 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(3)35.31 35.16 35.16 35.16 35.71 35.71 35.71 35.71 35.71 35.71
(1)37,857 38,199 38,261 38,689 39,240 39,769 40,065 40,217 40,389 40,660
(5)$104,410 $104,045 $111,077 $109,365 $97,526 $99,157 $104,749 $107,447 $117,802 $120,097
(1)23,528 23,585 23,612 23,871 24,150 24,432 24,544 24,643 24,764 24,957
(1) 2.55 2.56 2.58 2.59 2.60 2.62 2.64 2.63 2.68 2.60
(4) $40,961 $40,722 $43,053 $42,226 $37,510 $37,846 $39,288 $39,999 $42,931 $46,248
(2) 16,217 16,350 16,658 16,983 17,483 18,033 18,617 18,917 19,142 19,267
(2) 14,783 15,042 15,517 16,000 16,675 17,175 17,533 18,000 18,308 17,800
(2) 8.84% 8.00% 6.85% 5.79% 4.62% 4.76% 5.82% 4.85% 4.36% 7.61%
(4) 41.5 42.8 43.6 44.8 45.1 45.3 45.7 46 46.4 47.1Median age(3)
Calendar Year
Mean Household Income (in dollars)(4)
Number of Dwelling Units(1)
Persons per Household(1)
Labor Force(2)
Per Capita Income(3)
Employment(2)
City Land (Sq Miles)
Population(1)(3)
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 Sacramento, California, released May 1,2020. Data for all 10 years updated to match current DOF numbers.
(2) State of California Employment Development Department Website. Previous years' data updated in 2018/19 to utilize 12-month average and final numbers. Rise in
average unemployment rate for 2019/20 was due to double digit unemployment in
(3) HDL, Coren & Cone
(4) Previously, calculated using "Persons per Household" mulitplied by "Per Capita Income". Starting in 2017, data is from the US Census Bureau American Fact Finder
23,528
23,585
23,612
23,871
24,150
24,432
24,544
24,643
24,764
24,957
17,000
19,500
22,000
24,500
27,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Dwelling Units
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Unemployment Rate
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Mean Household Income
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Per Capita Income and Unemployment
Per Capita Income Unemployment Rate
152
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 2,852 14.80%2 921 6.92%
Hotel & Golf Resort 2 1,412 7.33%1 1,171 8.80%
Retailer 3 300 1.56%3 358 2.69%
Retailer 4 290 1.51%- 0.00%
Retailer 5 212 1.10%4 170 1.28%
Retailer 6 180 0.93%- 0.00%
Retailer 7 150 0.78%6 145 1.09%
Utility Company 8 134 0.70%- 0.00%
Traditions Golf Club Golf Resort 9 120 0.62%7 101 0.76%
Fast Food Restaurant 10 84 0.44%- 0.00%
Grocery Store 11 83 0.43%- 0.00%
Golf Resort 12 77 0.40%- 0.00%
Hideaway Golf Resort 5 114 0.86%
ND La Quinta Partners LLC Real estate Development 8 90 0.68%
Ralphs Grocery Store 9 67 0.50%
Total employment listed 5,894 30.59%3,137 23.59%
Total City Employment - July 1 19,267 13,300
Desert Sands Unified School District
Wal-Mart Super Center
La Quinta Resort & Club/ PGA West (1)
Fiscal Year 2010-11
Employer
Fiscal Year 2019-20
Rancho La Quinta
Home Depot
Costco
Lowe's Home Improvement
Target
Vons
In N Out
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
153
CITY OF LA QUINTA TABLE 21
Full-time City Employees
by Function
Last Ten Fiscal Years
2011 2012 2013 2014 (1)2015 2016 (2)2017 2018 2019 2020
14.00 12.00 11.00 8.00 7.00 4.00 4.00 5.00 7.00 8.00
6.00 5.00 5.00 4.00 4.00 3.00 3.00 5.00 5.00 4.00
9.00 8.00 8.00 7.00 8.00 7.00 7.00 8.00 8.00 8.00
10.75 10.75 10.75 12.00 11.65 - - - - -
24.00 21.00 21.00 - - - - - - -
9.00 8.00 9.00 - - - - - - -
- - - 19.00 20.00 - - - - -
26.25 24.25 23.25 20.00 21.35 - - - - -
- - - - - 18.00 18.00 18.00 18.00 23.00
- - - - - 27.00 27.00 29.00 32.00 33.00
- - - - - 19.00 19.00 19.00 19.00 19.00
Total 99.00 89.00 88.00 70.00 72.00 78.00 78.00 84.00 89.00 95.00
Fiscal Year
Facilities (c)
Finance
Community Services
Design and Development (b)
Community Resources (a)
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 :
(a)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.
(b)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.
(c)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
2011 2012 2013 2014 (1) 2015 2016 (2) 2017 2018 2019 2020
99.00
89.00 88.00
70.00
72.00
78.00 78.00
84.00
89.00
95.00
Total Full-Time City Employees
154
CITY OF LA QUINTA TABLE 22
Operating Indicators
by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020(3)
Finance:
Number of Animal Licenses Processed (1)1,619 1,674 1,505 1,602 1,374 - - - - -
Number of Accounts Payable Checks Processed 4,530 3,766 3,576 3,696 3,833 4,153 3,835 3,621 3,879 3,855
Number of investment purchases 20 27 30 22 21 22 20 61 56 49
Par value of investments 189,810,285$ 188,782,874$ 164,614,769$ 136,323,300$ 128,990,447$ 137,594,669$ 139,613,063$ 150,117,079$ 163,665,838$ 170,194,404$
Number of cleared checks 4,912 5,103 3,899 3,922 4,004 4,167 3,932 3,813 3,875 3,962
Number of outgoing bank wires 87 63 58 58 54 41 44 64 68 57
City Clerk:
Contracts Processed - 319 346 289 238 282 199 243 266 297
Documents Notarized - 254 301 334 203 157 99 128 74 90
Documents Recorded with County - 170 125 183 106 112 56 67 45 39
Subpoenas and Claims Processed - 22 15 21 37 10 8 12 18 15
Records Requests Fulfilled and Recorded - 518 558 601 580 518 743 572 602 633
Documents Scanned to Electronic Archives (1)- 30,437 28,798 34,671 164,847 233,182 214,384 593,991 970,894 753,291
Public Works:
Encroachment permits issued 104 65 124 109 127 54 123 121 140 121
Request for services (1)746 534 740 1,322 1,261 3,440 3,207 2,652 2,194 1,938
Community Development:
Number of Active Business Licenses (1)3,183 3,310 3,520 3,998 4,452 3,368 3,681 3,707 3,806 3,592
Permits:
Single family Detached 85 39 83 147 176 108 92 142 122 218
Single family Attached 0 11.00 0 - 4.00 7 7 6 14 1
Residential Pool 148 127 162 204 255 217 170 211 243 237
Wall/Fence 218 149 167 220 328 257 209 268 223 312
Other 1,033 916 1,042 1,158 1,316 1,230 1,258 1,571 1,655 1,401
Garage Sale Permits (1)1,805 1,430 1,404 1,255 1,290 1,109 1,024 928 959 604
Total Permits 3,289 2,672 2,858 2,984 3,369 2,928 2,760 3,126 3,216 2,773
Code Compliance (1):
Animal Control Incidents Handled (1)4,392 4,246 3,206 1,645 1,085 - - - 52 42
Vehicle abatements 263 139 99 88 85 255 212 224 184 149
Weed abatements 143 106 1,404 43 45 57 114 128 80 65
Nuisance abatements/Property Maintenance 2,252 2,433 1,668 730 557 1,037 1,180 1,122 921 821
All Other (2)- - - - - 1,432 806 888 1,159 1,591
Community Services:
Library activities:
Number of Visits 92,484 109,000 63,955 71,874 73,924 182,913 190,747 152,725 132,947 84,042
Books checked out 263,064 275,838 220,690 329,154 263,047 234,340 254,323 250,636 241,450 122,084
Cards Issued 3,822 4,477 2,966 2,035 2,418 2,179 2,248 2,276 2,251 919
Number of School Children Visiting 1,881 962 737 1,539 1,562 2,947 4,680 4,528 3,303 3,708
Volunteer Hours 4,280 2,720 2,226 1,340 1,917 2,169 2,248 2,314 2,138 1,173
Senior Center/Wellness Center (1) :
Number of visits 18,403 16,642 9,350 11,500 23,871 62,820 74,141 87,294 82,477 41,934
Volunteer Hours 3,099 2,690 2,233 2,745 1,279 1,585 1,420 1,333 1,148 506
Recreation activities:
Participants:
Leisure Classes 1,512 2,016 1,475 1,177 1,322 2,241 2,278 2,168 2,039 864
Special events 8,933 36,305 5,970 5,927 6,460 8,185 7,783 10,449 12,650 4,950
Adult Sports 13,092 5,647 3,865 5,878 5,487 7,192 6,695 6,136 5,932 3,644
Golf course:
Golf rounds played 45,269 46,949 46,352 43,610 41,904 45,104 43,085 42,590 44,949 33,407
Average Green fee 70.70$ 70.40$ 67.44$ 66.83$ 69.65$ 66.87$ 66.80$ 71.88$ 72.02$ 71.23$
Planning and Development:
Number of residential units approved 208 285 228 494 208 40 120 0 114 92
Commercial square footage approved 27,526 61,662 0 113,149.00 79,092 13,000 391,914 7,599 102,552 3,162
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.
(3) Declines in the reported numbers for the Library, Wellness Center, and any related recreational activities are due to facility closures and restrictions as a result of the
Novel Coronavirus pandemic.
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CITY OF LA QUINTA TABLE 23
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Public Works:
127 128 128 128 128 128 128 128 128 129
22 22 22 22 34 34 36 35.5 35.5 79.1
265 269 269 277 277 281 372 372 372 372
50 51 52 54 54 54 54 54 54 50
2,919 2,934 2,984 3,018 3,018 3,018 5,758 5,758 5,408 4,808
12 12 12 13 13 13 13 13 13 13
Parks and Recreation:
Parks(3)13 13 13 13 13 13 13 13 13 14
218 218 218 218 218 218 218 218 218
40 40 40 40 40 40 40 40 40
237.60
114.35
17.4 17.4
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 Acreage
Park Acreage
Traffic signals
Traffic signs
Bridges
Streetlights (2)
Hiking Trails (miles)
City-Owned Acres(3)
City-Improved Acres(3)
Fiscal Year
Bikepaths (miles) (1)
Streets (miles)
Senior/Wellness Center
Museum
Library
Notes:
(1) Bike path miles were updated to include both Class I (off-street) and Class II (on-street, painted bike lanes) bicycle paths in
2015; the City has been adding Class II through various projects and the 2020 number has been updated accordingly.
(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.
(3)In fiscal year 2019-20, the City added one public park, the SilverRock Event Site. In 2020, the City aligned reporting with the
Developmental Impact Fee Study from August 2019 which identifies parks as 'City-Owned' and 'City-Improved' by acreage in
Table 3.1.
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CITY OF LA QUINTA TABLE 24
Schedule of Insurance in Force
30-Jun-20
Company Name Policy Number Coverage Limits Term Premium
NFP Property & Casualty 107185100 Crime, Forgery, Fraud $1 Million 12/03/19 - 12/03/20 $3,208
Travelers
California B128410009W19 All Risk Property Insurance $25 Million 07/01/19 - 07/01/20 $101,868
Joint Powers Including Auto Physical Damage, Single Limit per Occurrence
Insurance Authority Terrorism, Boiler & Machinery subject to other sublimits
NFP Property & Casualty W14D19200701 Earthquake $10 Million 02/07/20 to 02/07/21 $170,000
Lloyds/Beazley Furloge Limited Real & Personal Property
Including Contingent Tax Interruption
California Self-Insured Comprehensive General $50 Million 07/01/19 - 07/01/20 $377,929
Joint Powers Pool and Automobile Liability Single Limit per Occurrence
Insurance Authority
California Self-Insured Workers' Compensation $10 Million 07/01/19 - 07/01/20 $211,083
Joint Powers Pool per occurrence
Insurance Authority
Source:City of La Quinta
157