2020-2021 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)C I T Y OF
LA QUINTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
Cv �Cv
- CALIFORNIA
Prepared by:
Finance Department
_t
Y' HALL ?
City of La Quinta, California
Annual Comprehensive Financial Report
Year Ended June 30, 2021
Prepared By: Finance Department
City of La Quinta, California
Table of Contents
June 30, 2021
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................... i
List of Principal Officers ...................................................................................................................................vi
Organizational Chart ....................................................................................................................................... vii
Certificate of Achievement for Excellence in Financial Reporting (GFOA)........................................................ viii
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
Statement of Activities ................................................................................................................................... 20
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 ........................................................................................................................... 32
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, 2021
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds .......................................................................... 85
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds ..................................................................................................................... 90
Budgetary Comparison Schedules – Special Revenue Funds
State Gas Tax ................................................................................................................................................. 95
Library and Museum ...................................................................................................................................... 96
Federal Assistance ......................................................................................................................................... 97
SLESA ............................................................................................................................................................. 98
Lighting and Landscaping ............................................................................................................................... 99
Quimby ........................................................................................................................................................ 100
Public Safety ................................................................................................................................................ 101
Art in Public Places ....................................................................................................................................... 102
South Coast Air Quality ................................................................................................................................ 103
AB 939 ......................................................................................................................................................... 104
Law Enforcement ......................................................................................................................................... 105
Measure A ................................................................................................................................................... 106
Economic Development ............................................................................................................................... 107
AB 1379 ....................................................................................................................................................... 108
Budgetary Comparison Schedules – Capital Projects Funds
Capital Improvement ................................................................................................................................... 109
Infrastructure .............................................................................................................................................. 110
Civic Center.................................................................................................................................................. 111
Transportation ............................................................................................................................................. 112
Parks and Recreation ................................................................................................................................... 113
Library Development ................................................................................................................................... 114
Community Center ....................................................................................................................................... 115
Street Facility ............................................................................................................................................... 116
Park Facility ................................................................................................................................................. 117
Fire Facility .................................................................................................................................................. 118
Budgetary Comparison Schedules – Debt Service Funds
Financing Authority ...................................................................................................................................... 119
Internal Service Funds
Combining Statement of Net Position .......................................................................................................... 121
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ......................................... 122
Combining Statement of Cash Flows ............................................................................................................ 123
City of La Quinta, California
Table of Contents
June 30, 2021
STATISTICAL SECTION
Net Position by Component (Table 1) ........................................................................................................... 125
Changes in Net Position (Table 2) ................................................................................................................. 127
Changes in Net Position – Governmental Activities (Table 3) ........................................................................ 129
Changes in Net Position – Business-type Activities (Table 4) ......................................................................... 131
Fund Balances of Governmental Funds (Table 5) .......................................................................................... 133
Changes in Fund Balances of Governmental Funds (Table 6) ........................................................................ 135
Tax Revenue by Source (Table 7) .................................................................................................................. 137
Top 25 Sales Tax Producers (Table 8) ........................................................................................................... 138
Taxable Sales by Category (Table 9) ............................................................................................................. 141
Assessed Value of Taxable Property (Table 10) ............................................................................................. 143
Direct and Overlapping Property Tax Rates (Table 11) .................................................................................. 144
Principal Property Taxpayers (Table 12) ....................................................................................................... 145
Property Tax Levies and Collections (Table 13) ............................................................................................. 146
Ratios of Outstanding Debt by Type (Table 14) ............................................................................................. 147
Ratio of General Bonded Debt Outstanding (Table 15) ................................................................................. 149
Direct and Overlapping Debt (Table 16) ....................................................................................................... 150
Legal Debt Margin Information (Table 17) .................................................................................................... 151
Pledged-Revenue Coverage (Table 18) ......................................................................................................... 153
Demographic and Economic Statistics (Table 19).......................................................................................... 154
Principal Employers (Table 20) ..................................................................................................................... 155
Full-time City Employees (Table 21) ............................................................................................................. 156
Operating Indicators (Table 22) .................................................................................................................... 157
Capital Asset Statistics by Function (Table 23) .............................................................................................. 158
Schedule of Insurance in Force (Table 24) .................................................................................................... 159
This page intentionally left blank.
June 30, 2022
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 Annual Comprehensive Financial Report
(ACFR) of the City of La Quinta for the fiscal year ending June 30, 2021. The ACFR 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 ACFR 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 ACFR 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. The City is responsible for ensuring an adequate internal control
structure is in place. The internal control structure is subject to constant evaluation by the
management of the City and annual review by independent auditors. Reviews determine
the adequacy of the internal control structure, as well as to determine if the City complied
with applicable laws and regulations. In reviewing internal control structures, the cost of a
control should not exceed the benefits to be derived, hence the objective is to provide
reasonable, rather than absolute assurance, that the financial statements are free of any
material misstatements.
Eide Bailly LLP, Certified Public Accountants, has issued an unmodified (“clean”) opinion on
the City’s financial statements for the year ended June 30, 2021. 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.
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. A natural paradise
in the Coachella Valley, the City is nestled between the Santa Rosa and San Bernardino
Mountains, is an integral part of the Coachella Valley’s world-renowned resort and
retirement area, and is known for its championship golf, festivals and community events,
health and wellness, 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
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, the unadjusted
unemployment rate for La Quinta was 6.5%, which was lower than unadjusted rates for
Riverside County’s at 7.3% and higher than the statewide average of 5.4%. Current
unemployment rates are greatly impacted by lingering effects of COVID-19, particularly in
the hospitality industry.
The City’s dominant industries are tourism, recreation, and retail, 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 commemorated through artists who showcase their high-quality artwork at the annual
fine art event, La Quinta Art Celebration, which is ranked number one in the United States
by ArtFair Sourcebook’s Top 100 Fine Art Events.
Substantially or completed projects during 2020/21 included Grocery Outlet and Los Arcos
Mexican cuisine in the La Quinta Village shopping center, Lifestream and Nothing Bundt
Cakes in the Washington Park Center, Café California and Arroyo’s Café in Old Town La
Quinta, and Nativa Silver & Crystals, Happy Tea Café, Sato’s Snacks and Extra Space
Storage along the Highway 111 corridor.
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 has taken a
proactive approach to rising pension and public safety costs by building its reserve
categories and paying down the City’s pension obligations. 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 2020/21, the General Fund’s overall fund balance increased by almost $18.9 million when
compared to the ending balance in 2019/20, mainly due to revenue increases surpassing
budget projections in areas such as transient occupancy taxes and sales tax. As of June
30, 2021, all four of the City’s reserve categories (Cash Flow Reserve, Natural Disaster,
Economic Disaster, and Capital Replacement) are fully funded to policy targets.
In June 2021 the City Council adopted a balanced budget without the use of reserves for
fiscal year 2021/22. The adopted budget had operating revenues exceeding expenses by
$62,840. The 2021/22 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 tax, and property tax. The City was incorporated in 1982 after
Proposition 13 was approved (the landmark property tax reform initiative enacted in 1978);
as such, the City receives a smaller share of property tax revenue but has also secured
additional property tax revenue from the County for fire and library services.
The Future
The City has a mixture of housing and commercial developments under construction. Larger
residential developments underway include Carmela, Coral Mountain, Andalusia, PGA West,
Tradition, Hideaway, Madison Club, and Rancho Santana and commercial developments
include luxury Montage and lifestyle Pendry hotels, Pavilion Palms, and The Peak mixed use
development.
Approved housing developments on the horizon include Centre at La Quinta, Palo Verde,
Piazza Serena and Diamante. In addition, the City is acquiring land for potential affordable
housing developments to further the City’s goals of fostering mixed-use development,
affordable housing, and multi-modal transportation, and development of the Highway 111
Corridor as outline in the General Plan.
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
ACFR for the fiscal year ended June 30, 2020. This was the twenty-fourth 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 ACFR.
A Certificate of Achievement is valid for one year. We believe that our current ACFR
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 and the Financial Advisory
Commission 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,
Jon McMillen, City Manager Claudia Martinez, Finance Director
vi
City of La Quinta
List of Principal Officers
June 30, 2021
CITY COUNCIL
Linda Evans, Mayor
Robert Radi, Mayor Pro Tem
Kathleen Fitzpatrick, Council Member
John Peña, Council Member
Steve Sanchez, Council Member
ADMINISTRATION
Jon McMillen, City Manager
Claudia Martinez, Finance Director/ City Treasurer
Christopher Escobedo, Community Resources Director
Danny Castro, Design and Development Director
Bryan McKinney, Public Works Director/ City Engineer
Gilbert Villalpando, Director (Business Unit/Housing Development)
Monika Radeva, City Clerk
William H. Ihrke, City Attorney
vii
viii
What inspires you, inspires us. | eidebailly.com
10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE
1
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, 2021, 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.
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of June 30, 2021, 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, and the 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.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2022,
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.
Rancho Cucamonga, California
June 30, 2022
4
This page intentionally left blank.
4
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, 2021. 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.
5
HIGHLIGHTS
At the close of 2020/21 (June 30, 2021):
•The total assets and deferred outflows of the City exceeded its total
liabilities and deferred inflows at the close of the fiscal year 2020/21
by $771,890,000 (net position). Of this amount, $163,256,000 (unre-
stricted net position) may be used to meet ongoing obligations and
approximately $561,921,000 or 73% was invested in capital assets
and is not available to meet ongoing obligations.
•Governmental activities total net position increased by $30,605,000
and the Business-Type total net position increased by $228,000 which
is attributable to the SilverRock Golf Course.
•Governmental funds (General Fund, Housing Authority, Capital
Improvement Fund, sixteen (15) non-major special revenue funds,
nine (10) non-major capital projects funds, and one (1) non-major
debt service fund) had a combined ending fund balance of
$185,847,000, an increase of $21,685,000. The increase in fund
balance can be attributed to taxes, including transient occupancy tax
and sales tax, exceeding the original budget projections by
$12,920,000 coupled with expenditures savings from the original
budget projections in the General Fund totaling $1,464,000, proceeds
from the sale of land totaling $1,219,000, grant reimbursements for
capital project costs from prior years and an extraordinary gain related
to the Successor Agency loans totaling $740,000.
•The unassigned General Fund balance comprised $24,242,000, or
17%, of the total $142,317,000 balance and represented 49% of total
final General Fund budgeted expenses including transfers and multi-
year capital projects.
•Total governmental activities long-term liabilities increased by
$951,000 from $15,061,000 to $16,012,000. This increase is largely
attributed to an increase of $1,044,000 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 may serve as a useful
indicator of whether the City’s financial position is improving or
deteriorating.
6
The statement of activities presents information showing how the
government's net position changed during the most recent fiscal year.
All changes in net position are reported as soon as the underlying event
occurs giving rise to the change, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods,
for example, earned but unused vacation leave.
Both of these government-wide financial statements distinguish City
functions, which are principally supported by taxes, fees, and
intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of
their costs through user charges (business-type activities).
Governmental activities include general government, public safety,
community services, community development and public works;
business-type activities include the SilverRock Golf course operations.
The government-wide financial statements include not only the City of
La Quinta (known as the primary government), but also the La Quinta
Financing Authority and the La Quinta Housing Authority. Although
legally separate entities, they function for all practical purposes as City
departments.
The government-wide financial statements are listed in the table of
contents under the Financial Section of this report.
Fund Financial Statements
A fund is a grouping of related accounts and is used to maintain control
over resources that have been segregated for specific activities or
objectives. The City, like other state and local governments, uses fund
accounting to ensure compliance with finance-related legal
requirements. All City’s funds are aggregated into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide
financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances
of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near-term
financing requirements.
7
Because the focus is narrower than the government-wide financial
statements, it is useful to compare this information with similar
information presented for governmental activities in the government-
wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes
in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains twenty-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, the Housing Authority special
revenue fund, and the Capital Improvement capital project fund. Data
from the other twenty-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 in the Combining and Individual Fund Statements and
Schedules section of the report.
The City adopts an annual budget for its General Fund. A budgetary
comparison schedule has been provided to demonstrate compliance
with the adopted budget.
The basic governmental fund financial statements can be found in the
table of contents under the heading Basic Financial Statements.
Proprietary Funds
Proprietary funds are broken down into enterprise an d internal service
funds. Enterprise funds are used to report the same functions presented
as business-type activities in the government-wide financial statements.
The City maintains one (1) enterprise fund to account for the SilverRock
Golf Course operations, which is considered a major fund.
Internal service funds are used to allocate costs among the City’s various
functions. The City has four (4) internal service funds: Equipment
Replacement, Information Technology, 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 and Schedules section of the report.
8
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 are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those
funds are not available to support the City’s own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds.
The City reports on two fiduciary funds: 1) the Supplemental Pension Trust
fund which accounts for the Defined Contribution Pension Trust established
to provide supplemental retirement benefits for employees, and (2)
Successor Agency of the Former RDA 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 and internal service 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 is 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 and
deferred outflows of resources exceeded its liabilities and deferred inflows
of resources by $771,890,000 at the close of the 2020/21, which is
$30,833,000 more than the previous year. Increases were reflected in all
three categories: capital assets, restricted, and unrestricted net position for
governmental activities.
The largest portion of the City’s Net Position ($561,921,000 or 73% for
2020/21 and $549,490,000 or 74% for 2019/20) 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 ($46,712,000 or 6% in 2021
and $46,001,000 or 7% in 2020) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of
unrestricted net position $163,256,000 (21%) may be used to meet the
government's ongoing obligations to citizens and creditors.
At the end of 2020/21, the City had positive balances in all three categories
of net position for the governmental and business-type activities.
Current and other
assets 219,549,201$ 244,089,333$ 11%242,326$ 1,000,641$ 313% 219,791,527$ 245,089,974$ 12%
Capital assets 509,777,422 519,203,177 2%39,712,955 42,717,914 8%549,490,377 561,921,091 2%
Total Assets 729,326,623 763,292,510 5%39,955,281 43,718,555 9%769,281,904 807,011,065 5%
Deferred outflows of
resources 3,426,624 4,373,009 28%- - 0%3,426,624 4,373,009 28%
- - 0%
Current liabilities 18,385,081 22,278,089 21%375,426 631,891 68%18,760,507 22,909,980 22%
Non-current liabilities 15,108,481 16,012,465 6%- - 0%15,108,481 16,012,465 6%
Total Liabilities 33,493,562 38,290,554 14%375,426 631,891 68%33,868,988 38,922,445 15%
Deferred inflows of
resources 1,062,516 572,557 -46%- - 0%1,062,516 572,557 -46%
Net Position:
Net investment in
capital assets 509,777,422 519,203,177 2%39,712,955 42,717,914 8% 549,490,377 561,921,091 2%
Restricted 46,001,248 46,711,801 2%- - 0%46,001,248 46,711,801 2%
Unrestricted 142,418,499 162,887,430 14%3,145,820 368,750 -88%145,564,319 163,256,180 12%
Total Net Position 698,197,169$ 728,802,408$ 4%42,858,775$ 43,086,664$ 1%741,055,944$ 771,889,072$ 4%
Total by Fiscal Year
%
Change20202021
Governmental Activities Business-Type Activities
%
Change
%
Change2020202120202021
10
Governmental Activities
Governmental activities net position increased by $30,605,000 accounting
for a positive 4% 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 $9,438,000 with the largest
increase of $8,925,000 being other taxes (transient occupancy taxes and
sales tax combined) followed by an increase of $6,156,000 in capital
grants and contributions (intergovernmental reimbursements for various
construction projects). These increases were offset by decreases totaling
$3,404,000 and $3,683,000 for operating grants and contributions and
investment income revenues, respectively.
•Expenses for Governmental Activities decreased by $25,959,000
(a 31% decrease when compared to 2019/20). The $20,810,000
decrease in Public Works reflects multiple projects in construction
phase delayed due to COVID-19 during 2020/21. Other decreases
in General Government and Community Services totaling
$6,176,000 were the result of budgetary reductions made in
anticipation of the financial impacts of COVID-19. 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 $875,000 to the business-type
activities of the golf course. Funds were utilized to support operations
per the adjusted budget.
PROGRAM REVENUES:
Charges for Services 3,584,923$ 4,705,011$ 1,120,088$ 2,746,748$ 3,509,096$ 762,348$ 6,331,671$ 8,214,107$ 1,882,436$
Operating Grants and Contributions 7,817,482 4,413,523 (3,403,959) - - - 7,817,482 4,413,523 (3,403,959)
Capital Grants and Contributions 9,613,752 15,770,048 6,156,296 - - - 9,613,752 15,770,048 6,156,296
GENERAL REVENUES & TRANSFERS -
Property Taxes 16,710,544 16,893,629 183,085 - - - 16,710,544 16,893,629 183,085
Other Taxes 30,253,291 39,178,741 8,925,450 - - - 30,253,291 39,178,741 8,925,450
Investment Income 5,110,358 1,427,664 (3,682,694) 9,356 13,081 3,725 5,119,714 1,440,745 (3,678,969)
Motor Vehicle In Lieu 4,290,417 4,376,455 86,038 - - - 4,290,417 4,376,455 86,038
Miscellaneous 1,404,143 1,457,788 53,645 - - - 1,404,143 1,457,788 53,645
TOTAL REVENUES 78,784,910 88,222,859 9,437,949 2,756,104 3,522,177 766,073 81,541,014 91,745,036 10,204,022
EXPENSES:
General Government 9,877,251 8,106,209 (1,771,042) - - - 9,877,251 8,106,209 (1,771,042)
Public Safety 24,009,725 24,429,310 419,585 - - - 24,009,725 24,429,310 419,585
Planning & Development 5,845,836 6,508,522 662,686 - - - 5,845,836 6,508,522 662,686
Community Services 11,362,950 6,958,234 (4,404,716) - - - 11,362,950 6,958,234 (4,404,716)
Public Works 32,248,031 11,438,197 (20,809,834) - - - 32,248,031 11,438,197 (20,809,834)
Interest on Long-Term Debt 98,049 42,081 (55,968) - - - 98,049 42,081 (55,968)
Golf Course - - - 4,148,190 4,169,286 21,096 4,148,190 4,169,286 21,096
TOTAL EXPENSES 83,441,842 57,482,553 (25,959,289) 4,148,190 4,169,286 21,096 87,590,032 61,651,839 (25,938,193)
Excess or Deficiency before
Transfers & Extraordinary Items (4,656,932) 30,740,306 35,397,238 (1,392,086) (647,109) 744,977 (6,049,018) 30,093,197 36,142,215
TRANSFERS & EXTRAORDINARY
ITEMS:
Extraordinary Gain on Dissolution of RDA 867,792 739,933 (127,859) - - - 867,792 739,933 (127,859)
Transfers (635,200) (875,000) (239,800) 635,200 875,000 239,800 - - -
Increase in Net Position (4,424,340) 30,605,239 35,029,579 (756,886) 227,891 984,777 (5,181,226) 30,833,130 36,014,356
Net Position - Beginning 702,621,509 698,197,169 (4,424,340) 43,615,661 42,858,773 (756,888) 746,237,170 741,055,942 (5,181,228)
NET POSITION - ENDING 698,197,169$ 728,802,408$ 30,605,239$ 42,858,775$ 43,086,664$ 227,889$ 741,055,944$ 771,889,072$ 30,833,128$
Total by Fiscal YearBusiness-Type ActivitiesGovernmental Activities
2020 2021 2020 2021 2020 2021ChangeChange Change
11
Business-Type Activities
This was the sixteenth full year of operations for t he SilverRock Golf
Resort since the golf course opened in 2005.
Charges for services primarily consisted of green fees which totaled
$3,509,000, $762,000 higher than the previous year, with golf course
expenses of $4,169,000, which were $21,000 or approximately 1%
more than the previous year. Increases in revenues resulted from the
golf course reopening as COVID-19 restrictions on outdoor activities
were lifted by the State of California.
In 2020/21, the General Fund transferred $875,000 to the SilverRock Golf
Fund to support operations. After this transfer, the net position increased
by $228,000.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to e nsure and
demonstrate compliance with finance-related legal requirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances. Such information is useful in
assessing the City's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of 2020/21, 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 $185,847,000, an
increase of $21,685,000 in comparison with the prior years’ ending balance
of $164,163,000. These collective fund balances include the General Fund,
Housing Authority, Financing Authority, Capital Improvement Fund, and
various Special Revenue and Capital Improvement funds.
Category General Fund Percent All Other Funds Percent Total Funds Percent
Nonspendable 29,499,520$ 21%1,019$ 0.002% 29,500,539$ 16%
Restricted 11,381,922 8% 46,711,801 107% 58,093,723 31%
Committed 37,209,870 26%- 0% 37,209,870 20%
Assigned 39,983,678 28%- 0% 39,983,678 22%
Unassigned 24,241,553 17% (3,182,262) -7% 21,059,291 11%
TOTAL 142,316,543$ 100% 43,530,558$ 100% 185,847,101$ 100%
12
Nonspendable
Nonspendable fund balance totaled $29,501,000 or 16%; this represents
amounts that are not available to pay for operating expenditures because
they are in the form of land and receivables.
Restricted
Restricted fund balance totaled $58,094,000 or 31%; these amounts
represent funds with external limitations on spending. Significant
restrictions include: Section 115 trust of $11,382,000 restricted for pension
liabilities; Library and Museum totaling $8,989,000 which represents
property tax increment money that can only be used for library and
museum services; Measure A funding of $3,199,000 which can only be used
for transportation; Economic Development funding of $3,050,000 that can
only be used for future economic development in the City; Transportation
capital project fund of $2,266,000 in developer fees that are restricted for
the acquisition, construction and improvement of the City’s infrastructure.
Committed
$37,210,000 (20%) 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 $39,984,000 (22%) of the total fund
balance. $13,431,000 represents funds for approved multi-year capital
projects that were not spent by the end of the year, therefore they are
carried overs until the projects are completed. Available Measure G sales
tax revenue ended the year at $15,129,000 and $11,424,000 represents
funds held in trust with the County of Riverside for fire services.
Unassigned
The remaining fund balance or $21,059,000 represents unassigned fund
balances or the residual net resources after taking into consideration the
other classifications. The Capital Improvement Fund accounted for
$1,377,000 of the negative $3,182,000 balance of all other funds. 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.
13
General Fund
The General Fund is the City’s chief operating fund. At the end of 2020/21,
the unassigned fund balance was $24,242,000 while total fund balance was
$142,317,000.
The General Fund balance increased by $18,983,000 in 2020/21. Key
factors were:
•A year-over-year decrease of $1,988,000 in non-spendable is
attributed the 2020/21 Redevelopment Agency loan repayment of
$2,591,000 offset by interest earnings of $592,000 resulted in a net
decrease of $1,999,000 in Due from Other Governments. The
outstanding loan balance of $30,088,278is 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 2020/21
additional contributions coupled with investment gains caused the
trust to increase by $1,132,000.
•Committed reserves increased by $7,091,000. The increase resulted
from an increase of $3,460,000 in the Capital Replacement Reserves
and $4,200,000 in the Economic Disaster Reserve.
•An increase of $7,601,000 in assigned reserves was primarily due to
an increase in the Measure G sales tax reserve ($6,392,000).
Assigned to public safety represents property tax accumulated and
held in trust by the County of Riverside for fire protection, disaster
preparedness and response, fire prevention, rescue, hazardous
materials mitigation, technical rescue response, medical emergency
services, and public service 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, 2021 is
$11,424,000.
•Actual expenses were $1,426,000 lower than the final budget of which
$1,209,000 was carried over into 2021/22 for continuing
appropriations related to operations. Funds not being carried over are
recognized as Unassigned Fund Balance in the General Fund. CIP
revenue commitments totaling $13,431,000 are reflected in assigned
reserves and operational carryovers are noted in committed reserves.
14
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 $988,000 to end the year at $23,807,000.
Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures
for capital projects. The fund had thirty-eight (38) active Capital
Improvement Projects budgeted during 2020/21. The five most active
projects were:
•SilverRock Infrastructure Improvements ($5,010,000)
•La Quinta Village Complete Streets ($3,024,000)
•SilverRock Event Site ($2,326,000)
•La Quinta X-Park ($2,028,000)
•Washington Street at Fred Waring Street Improvements ($1,264,000)
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
Most General Fund revenues experienced positive variances when
compared to the final budget. Revenue appropriations and transfers in
increased by $6,960,000 between the original ($50,726,000) and final
amended budget ($57,686,000). The category representing the largest
variances is taxes which represents 77% of all General Fund revenues.
Taxes includes the three largest funding sources for the City – sales taxes
$23,324,000, property taxes $16,894,000, and transient occupancy taxes
(TOT) $11,847,000. Combined, these top three revenues account for
$52,065,000 or 93% of all taxes.
15
The Extraordinary Item includes $592,000 to record the annual former
Redevelopment Agency loan repayment interest earned in 2020/21. 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.
Expenditure appropriations and transfers out decreased by $37,800 between
the original ($49,118,000) and final amended budget ($49,080,000) and
was related to minor changes in estimates from the time the budget was
adopted to the end of the fiscal year.
CAPITAL ASSET AND LONG TERM LIABILITIES
ADMINISTRATION
Capital Assets
The City’s capital assets for its governmental and business-type activities
as of June 30, 2021, were $561,921,000 (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 increased by $9,152,000 in 2020/21 primarily
due to an increase in construction in progress and the completion of
projects that began in previous years.
The following chart lists the asset categories for governmental and
business-like activities net of depreciation:
City of La Quinta Capital Assets (net of depreciation)
Major capital asset events under Governmental Activities included the
following:
•Recording infrastructure improvements, street improvements, street
right of way, street sidewalks and curbs and gutters, traffic signals,
street medians, and construction in progress.
2020 2021 2020 2021 2020 2021
Land 66,810,841$ 66,901,495$ 39,712,955$ 39,712,955$ 106,523,796$ 106,614,450$
Buildings & Improvements 37,098,256 34,781,617 3,127,733 2,913,188 40,225,989 37,694,805
Equipment & Furniture 1,590,589 1,580,195 151,187 91,771 1,741,776 1,671,966
Vehicles 715,710 617,648 - - 715,710 617,648
Software - - - - - -
Infrastructure 378,965,718 381,409,739 - - 378,965,718 381,409,739
Construction in Progress 24,596,308 33,912,483 - - 24,596,308 33,912,483
TOTAL 509,777,422$ 519,203,177$ 42,991,875$ 42,717,914$ 552,769,297$ 561,921,091$
Governmental Activities Business-Type Activities Total By Fiscal Year
Description
16
Business-Type Activities
The Golf Course capital asset balance at June 30, 2021, was $42,718,000,
net of accumulated depreciation. The balance decrease of $274,000 reflects
accumulated depreciation expensed in 2020/21.
Additional information on the City of La Quinta’s capital assets can be found
in Note 4 to the financial statements.
Long-Term Liabilities
At the end of 2020/21, the City governmental activities had total outstanding
long-term liabilities of $16,012,000, which is $951,000 greater than the
previous year. Of the total amount, $460,000 represents capital leases and
$950,000 in employee compensated absences. The increase of $1,044,000
in the Net Pension Liability is described in Note 8 and the obligation is not
reduced by the Pension Trust balance of $11,382,000 until funds are
remitted to CalPERS.
City of La Quinta Outstanding Long-Term Liabilities
Additional information on long-term liabilities can be found in Note 5 of
the financial statements.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City’s
finances. Questions concerning this information or requests for additional
information should be addressed to the City of La Quinta, Claudia Martinez,
Finance Director/City Treasurer, 78-495 Calle Tampico, La Quinta, CA,
92253, by telephone at 760-777-7055, or by email at
finance@laquintaca.gov.
Debt Type:2020 2021
Capital Leases 761,790$ 459,275$
Compensated Absences 888,491 950,309
Net OPEB (Asset) Liability (47,052) 100,570
Net Pension Liability 13,458,200 14,502,311
TOTAL 15,061,429$ 16,012,465$
Governmental Activities
17
This page intentionally left blank.
See Notes to Financial Statements 18
City of La Quinta, California
Statement of Net Position
June 30, 2021
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 159,296,943$ 658,182$ 159,955,125$
Restricted cash and investments 11,381,922 - 11,381,922
Receivables
Accounts 1,431,989 - 1,431,989
Taxes 7,054,395 - 7,054,395
Notes and loans 22,685,507 - 22,685,507
Accrued interest 4,761,626 210 4,761,836
Prepaid costs 248,188 - 248,188
Deposits 47,964 250,000 297,964
Due from other governments 31,777,147 - 31,777,147
Inventories - 92,249 92,249
Land held for resale 5,403,652 - 5,403,652
Capital assets not being depreciated 386,671,331 39,712,955 426,384,286
Capital assets, net of depreciation 132,531,846 3,004,959 135,536,805
Total assets 763,292,510 43,718,555 807,011,065
Deferred Outflows of Resources
Deferred amounts related to OPEB 292,929 - 292,929
Deferred amounts related to pensions 4,080,080 - 4,080,080
Total deferred outflows of resources 4,373,009 - 4,373,009
Liabilities
Accounts payable 11,204,884 596,391 11,801,275
Accrued liabilities 436,338 - 436,338
Unearned revenue 1,450,898 - 1,450,898
Deposits payable 7,724,459 35,500 7,759,959
Due to other governments 1,461,510 - 1,461,510
Noncurrent liabilities
Due within one year 498,576 - 498,576
Due in more than one year 15,513,889 - 15,513,889
Total liabilities 38,290,554 631,891 38,922,445
Deferred Inflows of Resources
Deferred amounts related to OPEB 41,158 - 41,158
Deferred amounts related to pensions 531,399 - 531,399
Total deferred inflows of resources 572,557 - 572,557
Net Position
Net investment in capital assets 519,203,177 42,717,914 561,921,091
Restricted for
Planning and development projects 24,751,443 - 24,751,443
Public safety 931,352 - 931,352
Public works 5,196,324 - 5,196,324
Capital projects 3,018,894 - 3,018,894
Community services 12,813,788 - 12,813,788
Unrestricted 162,887,430 368,750 163,256,180
Total net position 728,802,408$ 43,086,664$ 771,889,072$
Primary Government
See Notes to Financial Statements 19
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2021
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary Government
General government 8,106,209$ 1,541,535$ 28,515$ 4,329,434$
Public safety 24,429,310 770,760 7,292 159,921
Planning and development 6,508,522 710,529 153,032 1,497,994
Community services 6,958,234 178,554 897,343 -
Public works 11,438,197 1,503,633 3,327,341 9,782,699
Interest on long-term debt 42,081 - - -
Total governmental activities 57,482,553 4,705,011 4,413,523 15,770,048
Business-Type Activities
Golf Course 4,169,286 3,509,096 - -
Total primary government 61,651,839$ 8,214,107$ 4,413,523$ 15,770,048$
General Revenues
Taxes
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Other taxes
Motor vehicle in lieu - unrestricted
Investment income
Other
Extraordinary item
Transfers
Total General Revenues, Extraordinary
Items and Transfers
Change in Net Position
Net Position at Beginning of Year
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, 2021
Governmental Business-Type
Activities Activities Total
(2,206,725)$ -$ (2,206,725)$
(23,491,337) - (23,491,337)
(4,146,967) - (4,146,967)
(5,882,336) - (5,882,336)
3,175,476 - 3,175,476
(42,081) - (42,081)
(32,593,971) - (32,593,971)
- (660,190) (660,190)
(32,593,971) (660,190) (33,254,161)
16,893,629 - 16,893,629
11,847,139 - 11,847,139
23,323,549 - 23,323,549
2,055,505 - 2,055,505
383,551 - 383,551
1,568,997 - 1,568,997
4,376,455 - 4,376,455
1,427,664 13,081 1,440,745
1,457,788 - 1,457,788
739,933 - 739,933
(875,000) 875,000 -
63,199,210 888,081 64,087,291
30,605,239 227,891 30,833,130
698,197,169 42,858,773 741,055,942
728,802,408$ 43,086,664$ 771,889,072$
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, 2021
Special Capital Projects
Revenue Fund Fund Other Total
Housing Capital Governmental Governmental
General Authority Improvement Funds Funds
Assets
Pooled cash and investments 110,782,834$ 15,598,797$ 1,809,494$ 21,588,356$ 149,779,481$
Restricted cash and investments 11,381,922 - - - 11,381,922
Receivables
Accounts 730,310 166,658 28,925 500,000 1,425,893
Taxes 6,384,346 - - 670,049 7,054,395
Notes and loans - 22,685,507 - - 22,685,507
Accrued interest 39,782 4,709,317 - 8,718 4,757,817
Prepaid costs 25,246 - - 1,019 26,265
Deposits - 47,964 - - 47,964
Due from other governments 24,189,749 6,017,655 527,974 1,041,769 31,777,147
Due from other funds 401,669 - - - 401,669
Land held for resale 5,403,652 - - - 5,403,652
Total assets 159,339,510$ 49,225,898$ 2,366,393$ 23,809,911$ 234,741,712$
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable 8,410,697$ 17,910$ 2,331,760$ 349,975$ 11,110,342$
Accrued liabilities 391,692 18,181 - 25,233 435,106
Unearned revenues 39,101 - 1,411,797 - 1,450,898
Deposits payable 7,699,783 24,676 - - 7,724,459
Due to other governments 2,721 - - 1,458,789 1,461,510
Due to other funds - 26,777 - 374,892 401,669
Total liabilities 16,543,994 87,544 3,743,557 2,208,889 22,583,984
Deferred Inflows of Resources
Unavailable revenue 478,973 25,331,654 - 500,000 26,310,627
Fund Balances
Nonspendable
Prepaid costs 25,246 - - 1,019 26,265
Land held for resale 5,403,652 - - - 5,403,652
Due from successor agency 24,070,622 - - - 24,070,622
Restricted for
Planning and development projects - 23,806,700 - 944,743 24,751,443
Public safety - - - 931,352 931,352
Community services - - - 12,813,788 12,813,788
Public works - - - 5,196,324 5,196,324
Capital projects - - - 3,018,894 3,018,894
Section 115 trust 11,381,922 - - - 11,381,922
Committed to
Natural Disaster Reserve 10,000,000 - - - 10,000,000
Economic Downturn Reserve 11,000,000 - - - 11,000,000
Cash Flow Reserve 5,000,000 - - - 5,000,000
Capital Replacement Reserve 10,000,000 - - - 10,000,000
Carryovers 1,209,870 - - - 1,209,870
Assigned for
Public safety 11,423,931 - - - 11,423,931
Sales Tax Reserve 15,128,658 - - - 15,128,658
Capital projects 13,431,089 - - - 13,431,089
Unassigned 24,241,553 - (1,377,164) (1,805,098) 21,059,291
Total fund balance 142,316,543 23,806,700 (1,377,164) 21,101,022 185,847,101
Total liabilities, deferred inflows of
resources and fund balances 159,339,510$ 49,225,898$ 2,366,393$ 23,809,911$ 234,741,712$
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, 2021
Amounts reported for governmental activities in the statement of net position are different because:
Fund balances of governmental funds 185,847,101$
Capital assets net of accumulated depreciation have not been
not been included as current financial resources
in governmental fund activity 505,612,664
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the governmental funds:
Capital lease payable (41,225)$
Compensated absences (950,309)
Net OPEB liability (100,570)
Net pension liability (14,502,311) (15,594,415)
Deferred outflows related to pensions 4,080,080
Deferred outflows related to OPEB 292,929
Deferred inflows related to pensions (531,399)
Deferred inflows related to OPEB (41,158)
Revenues reported as unavailable revenue in the governmental
funds are recognized in the statement of activities 26,310,627
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 22,825,979
Net Position of Governmental Activities 728,802,408$
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, 2021
Special Capital Projects
Revenue Fund Fund Other Total
Housing Capital Governmental Governmental
General Authority Improvements Funds Funds
Revenues
Taxes 51,515,854$ -$ -$ 1,977,932$ 53,493,786$
Assessments - - - 984,435 984,435
Licenses and permits 2,020,596 - - - 2,020,596
Intergovernmental 8,551,964 - 11,991,234 5,177,130 25,720,328
Charges for services 964,710 - -- 964,710
Use of money and property 1,569,149 1,048,695 - (16,362) 2,601,482
Fines and forfeitures 779,606 - - - 779,606
Contributions from other agencies - - - - -
Developer participation - - 171,134 1,673,531 1,844,665
Miscellaneous 642,949 1,820 - 1,011 645,780
Total revenues 66,044,828 1,050,515 12,162,368 9,797,677 89,055,388
Expenditures
Current
General government 8,463,130 - - 1,100 8,464,230
Public safety 24,285,517 - - 143,793 24,429,310
Planning and development 2,997,459 851,820 1,086,169 1,609,029 6,544,477
Community services 3,186,042 300,000 - 2,097,378 5,583,420
Public works 1,930,838 - - 3,356,442 5,287,280
Capital outlay 440,489 - 17,764,845 14,051 18,219,385
Debt service
Interest and fiscal charges - - - 15,133 15,133
Total expenditures 41,303,475 1,151,820 18,851,014 7,236,926 68,543,235
Excess (Deficiency) of Revenues
over (under) Expenditures 24,741,353 (101,305) (6,688,646) 2,560,751 20,512,153
Other Financing Sources (Uses)
Proceeds from sale of land - 1,219,485 - - 1,219,485
Transfers in - -8,976,267 1,805,000 10,781,267
Transfers out (6,350,423) (278,062) - (4,939,796) (11,568,281)
Total other financing
sources (uses)(6,350,423) 941,423 8,976,267 (3,134,796) 432,471
Extraordinary Item
Successor Agency loan 591,946 147,987 - - 739,933
Net Changes in Fund Balances 18,982,876 988,105 2,287,621 (574,045) 21,684,557
Fund Balances, Beginning of Year 123,333,667 22,818,595 (3,664,785) 21,675,067 164,162,544
Fund Balances, End of Year 142,316,543$ 23,806,700$ (1,377,164)$ 21,101,022$ 185,847,101$
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, 2021
Amounts reported for governmental activities in the statement of activities are different because:
Net changes in fund balances - total governmental funds 21,684,557$
Governmental funds report capital projects (outlays) as expenditures.
However, in the statement of activities, the costs of those assets are
allocated over their estimated useful lives as depreciation expense.
This is theamount by which capital outlays exceeded depreciation
in the current period.
Capital Outlay, net of adjustments for deletions 18,060,055$
Expenditures classified in various functions are
reclassified as capital additions 880,731
Depreciation Expense, net of adjustments for deletions (8,715,074) 10,225,712
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 24,713
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.(61,818)
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.(25,672)
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.270,283
Revenues reported as unavailable revenue in the governmental
funds are recognized as operating contributions and grants
in the statement of activities.(2,127,743)
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.615,207
Change in net position of governmental activities 30,605,239$
See Notes to Financial Statements 25
City of La Quinta, California
Statement of Net Position – Proprietary Funds
June 30, 2021
Business-Type Governmental
Activities Activities
Enterprise Funds Internal Service
Golf Course Funds
Assets
Current
Pooled cash and investments 658,182$ 9,517,462$
Receivables
Accounts - 6,096
Accrued interest 210 3,809
Prepaid costs - 221,923
Deposits 250,000 -
Inventories 92,249 -
Total current assets 1,000,641 9,749,290
Noncurrent
Capital assets not being depreciated 39,712,955 5,904,644
Capital assets, net of depreciation 3,004,959 7,685,869
Total noncurrent assets 42,717,914 13,590,513
Total assets 43,718,555 23,339,803
Liabilities
Current
Accounts payable 596,391 94,542
Accrued liabilities - 1,232
Deposits payable 35,500 -
Current portion of capital leases - 227,109
Total current liabilities 631,891 322,883
Noncurrent Liabilities
Long-term portion of capital leases - 190,941
Total liabilities 631,891 513,824
Net Position
Net investment in capital assets 42,717,914 13,172,463
Unrestricted 368,750 9,653,516
Total net position 43,086,664$ 22,825,979$
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, 2021
Business-Type Governmental
Activities Activities -
Enterprise Funds Internal
Golf Course Service Funds
Operating Revenues
Sales and service charges 3,509,096$ 3,715,309$
Operating Expenses
Administration and general - 236,523
Fuel and oil - 80,734
Maintenance and parts - 116,728
Contract services 3,763,946 495,172
Software and supplies - 1,170,502
Depreciation expense 273,961 961,234
Other 131,379 -
Total operating expenses 4,169,286 3,060,893
Operating Loss (660,190) 654,416
Nonoperating Revenues (Expenses)
Interest revenue 13,081 14,503
Miscellaneous revenues - 14,129
Interest expense - (26,948)
Total nonoperating revenues (expenses)13,081 48,777
Income (Loss) Before Transfers (647,109) 703,193
Transfers in 875,000 -
Transfers out - (87,986)
Total transfers 875,000 (87,986)
Changes in Net Position 227,891 615,207
Net Position, Beginning of the Year 42,858,773 22,210,772
Net Position at End of Year 43,086,664$ 22,825,979$
See Notes to Financial Statements 27
City of La Quinta, California
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2021
Business-Type Governmental
Activities-Activities-
Enterprise Funds Internal
Golf Course Service Funds
Operating Activities
Cash received from customers and users 3,507,486$ -$
Cash received from interfund services provided - 3,709,214
Cash payments to suppliers for goods and services (3,623,683) (1,984,710)
Cash payments to employees for services - (1)
Net Cash from (used for) Operating Activities (116,197) 1,724,503
Non-Capital Financing Activities
Cash transfers out - (87,986)
Cash transfers in 875,000 -
Repayment of advance from other funds (116,541) -
Net Cash from (used for) Non-Capital Financing Activities 758,459 (87,986)
Capital and Related Financing Activities
Proceeds from capital debt - -
Capital contributions - 10,130
Acquisition and construction of capital assets - (161,281)
Interest paid on capital debt - (26,944)
Capital lease - (277,801)
Proceeds from sales of capital assets - 47,093
Net Cash used for Capital and Related Financing Activities - (408,803)
Investing activities
Interest received on investments 13,700 27,803
Net Increase (Decrease) in Cash and Cash Equivalents 655,962 1,255,517
Cash and Cash Equivalents at Beginning of Year 2,220 8,261,945
Cash and Cash Equivalents at End of Year 658,182$ 9,517,462$
See Notes to Financial Statements 28
City of La Quinta, California
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2021
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)(660,190)$ 654,416$
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities:
Depreciation 273,961 961,234
Changes in
Accounts receivable - (6,096)
Inventories 13,567 -
Prepaid costs - 237,178
Accounts payable 258,075 (122,089)
Accrued liabilities (1,610) (140)
Net Cash from (used for) Operating Activities (116,197)$ 1,724,503$
See Notes to Financial Statements 29
City of La Quinta, California
Statement of Fiduciary Net Position
June 30, 2021
Pension Trust Private-Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan former RDA
Assets
Pooled cash and investments 94,749$ 26,279,132$
Receivables
Notes and loans - 1,013,494
Accrued interest 38 9,536
Prepaid asset - 328,108
Due from other governments - 1,458,790
Restricted assets
Cash and investments with fiscal agent - 1,421
Total assets 94,787 29,090,481
Deferred Outflows of Resources
Deferred charge on refunding - 16,891,504
Total deferred outflows of resources - 16,891,504
Liabilities
Accounts payable - 8,238
Accrued interest - 901,766
Long-term liabilities
Due in one year - 15,288,610
Due in more than one year - 201,046,319
Total liabilities - 217,244,933
Net Position (Deficit)
Restricted for pensions 94,787$
Held in trust (171,262,948)$
See Notes to Financial Statements 30
City of La Quinta, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2021
Pension Trust Private-Purpose
Fund Trust Fund
Successor
Supplemental Agency of the
Pension Plan Former RDA
Additions
Taxes -$ 20,798,995$
Net investment income (246) (156,886)
Other revenues 5,000 2,526,381
Total additions 4,754 23,168,490
Deductions
Administrative expenses 12,833 452,932
Contractual services - 7,536,784
Interest and fiscal charges - 7,512,870
Land Acquisition - 5,813,436
Total deductions 12,833 21,316,022
Extraordinary Item
Successor Agency loan principal - (739,933)
Changes in Net Position (8,079) 1,112,535
Net Position/(Deficit) - Beginning of the Year 102,866 (172,375,483)
Net Position/(Deficit) - End of the Year 94,787$ (171,262,948)$
31
This page intentionally left blank.
32
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
33
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
34
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
35
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 another 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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
36
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.
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
37
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:
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 Successor Agency to 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.
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
38
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.
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
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
39
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 sixty 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. See Notes 8
and 9 for more information about deferred outflows of pensions and post-employment benefits, respectively.
The Private Purpose Trust Fund- Successor Agency of the former RDA recorded deferred outflows of resources
related to debt refundings. See Note 17 for more information on the 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. See Notes 8 and 9 for more information about deferred inflows of pensions and post-employment
benefits, 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.
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
40
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.
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
41
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, liabilities, and deferred outflows/inflows of resources 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. 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. The City has implemented this Statement effective July 1,
2020.
GASB Statement No. 90 – In September 2018, the GASB issued 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. The City has implemented this
Statement effective July 1, 2020.
GASB Statement No. 98 – In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive
Financial Report. The statement establishes the term annual comprehensive financial report and its acronym
ACFR. The new term and acronym replaces instances of comprehensive annual financial report and its acronym
in generally accepted accounting principles for state and local governments. The City implemented this
statement effective July 1, 2020.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
42
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. 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,
or FY 2021/2022. The City has not determined the effect on the financial statements.
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, or FY 2021/2022. The City has not determined the effect on the financial statements.
GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and
eliminate diversity in practice. The Statement is effective for reporting periods beginning after December 15,
2021, or FY 2022/2023. The City has not determined the effect on the financial statements.
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 to improve the consistency of
authoritative literature by addressing practices issues that have been identified during implementation and
application of certain GASB Statements. The Statement is effective for reporting periods beginning after June 15,
2021, or FY 2021/2022. The City has not determined the effect on the financial statements.
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 the accounting and financial reporting implications that
result from the replacement of an IBOR. The Statement is effective for reporting periods beginning after
June 15, 2021, or FY 2021/2022. The City has not determined the effect on the financial statements.
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 issues related to public-private and public-public partnership arrangements (PPPs). The
Statement is effective for reporting periods beginning after June 15, 2022, or FY 2022/2023. The City has not
determined the effect on the financial statements.
GASB Statement No. 96 – In May 2020, the GASB issued Statement No. 96, Subscription-based Information
Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and
financial reporting for subscription-based information technology arrangements (SBITAs) for government end
users (governments). The Statement is effective for reporting periods beginning after June 15, 2022, or FY
2022/2023. The City has not determined the effect on the financial statements.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
43
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 Statement No.14 and No.84 and A Supersession of GASB Statement No.32. The
objective of this Statement is (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 other
postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans
(other employee benefit 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 (IRC) Section 457 deferred compensation plans (Section 457 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, or FY 2021/2022. The City has not determined the effect on the financial
statements.
Note 2 - Cash and Investments
Cash and investments as of June 30, 2021, are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments 159,955,125$
Restricted cash and investments 11,381,922
Statement of Fiduciary Net Position
Cash and investments 26,373,881
Cash and investments with fiscal agent 1,421
Total cash and investments 197,712,349$
Cash and investment as of June 30, 2021, consist of the following:
Cash on hand 3,300$
Deposits with financial institutions 15,809,663
Investments 181,899,386
Total cash and investments 197,712,349$
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
44
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 20%-40% and 500%-80%, respectively.
There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity
of an investments.
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
45
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 32,746,450$ 6,671,184$ 16,186,603$ 9,888,663$
Federal agency securities
Federal Farm Credit Bank 8,435,920 1,002,750 4,361,565 3,071,605
Federal National Mortgage Association 5,501,570 - 1,014,380 4,487,190
Federal Home Loan Mortgage Corp 3,952,934 - -3,952,934
Federal Home Loan Bank 4,293,225 - 528,180 3,765,045
U.S. Treasury Notes 10,000,895 2,515,145 1,022,850 6,462,900
Corporate Notes 2,940,984 1,006,425 1,441,054 493,505
Local Agency Investment Fund 77,517,066 77,517,066 - -
CAMP 13,854,441 13,854,441 - -
Riverside County Pool 11,423,931 11,423,931 - -
Section 115 Trust
Equity Mutual Funds 3,677,129 3,677,129 - -
Fixed Income Mutual Funds 7,553,420 7,553,420 - -
Held by Fiscal Agent
Money Market Mutual Funds 1,421 1,421 - -
Total 181,899,386$ 125,222,912$ 24,554,632$ 32,121,842$
Remaining Maturity (in Years)
Investment Type
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
46
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 22,183,649$ -$ 22,183,649$ -$ -$
Corporate Notes 2,940,984 906,449 500,040 514,540 1,019,955
CAMP 13,854,441 13,854,441 - - -
Total 38,979,074 14,760,890$ 22,683,689$ 514,540$ 1,019,955$
Exempt from Credit Risk disclosure:
U.S. Treasury Notes 10,000,895
Not rated:
Certificates of Deposit 32,746,450
Local Agency Investment Pool 77,517,066
Riverside County Pool 11,423,931
Section 115 Trust:
Equity Mutual Funds 3,677,129
Fixed Income Mutual Funds 7,553,420
Held by Fiscal Agent:
Money Market Mutual Funds 1,421
Total investments 181,899,386$
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 8,435,920$ 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 City utilizes
delivery versus payment for investment purchases, which requires investments to be received prior to delivery
of cash payment. 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
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
47
following provision for deposits: The California Government Code requires that a financial institution secure
deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by
a depository regulated under state law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the
public agencies. California law also allows financial institutions to secure City deposits by pledging first trust
deed mortgage notes having a value of 150 percent of the secured public deposits, 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 Treasurer of the State of California. The fair value of the City’s
investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s
pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost
of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF,
which are recorded on an amortized cost basis. Deposits and withdrawals are made on the basis of $1 and not
fair value. Accordingly, the City’s measurement of fair value of its investment with LAIF is based on
uncategorized inputs, not defined as a level 1, level 2, or level 3 input. LAIF is not registered with the Securities
and Exchange Commission and is not rated.
Investment in California Asset Management Program
The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the
California Government Code Section 53601 (p) and managed by a Board of Trustees comprised of finance
directors and treasurers of California public agencies that are members of the Joint Powers Authority. The City’s
investment in this pool is reported in the accompanying financial statements of net position and prepared using
the accrual basis of accounting. Investments are reported at fair value. The balance available for withdrawal is
based on the accounting records maintained by CAMP. CAMP is not registered with the Securities and Exchange
Commission.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
48
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
other observable inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2
are valued using the market approach and quoted market prices.
The City has the following recurring fair value measurements as of June 30, 2021:
Total Level 1 Level 2
Investments
U.S. Treasury Notes 10,000,895$ 10,000,895$ -$
Federal Agency Securities 22,183,649 - 22,183,649
Corporate Notes 2,940,984 - 2,940,984
Certificates of Deposit 32,746,450 - 32,746,450
Section 115 Trust
Equity Mutual Funds 3,677,129 3,677,129 -
Fixed Income Mutual Funds 7,553,420 7,553,420 -
Total leveled investments 79,102,527 13,678,024$ 57,871,083$
Investments with uncategorized inputs
Local Agency Investment Fund 77,517,066
CAMP 13,854,441
Riverside County Pool 11,423,931
Held by Fiscal Agent
Money Market Mutual Funds 1,421
Total investments 181,899,386$
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, 2021, the
outstanding principal balance is $2,035,388 and the outstanding interest is $3,132,282.
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
49
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, 2021, the outstanding principal balance is $20,628,343 and the outstanding interest balance is
$1,571,029.
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 $21,776 at June 30, 2021.
Note 4 - Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2021, is as follows:
Balance at Balance at
July 01, 2020 Additions Deletions Transfers June 30, 2021
Governmental activities
Capital assets, not being depreciated
Land 66,810,841$ -$ 1,249,239$ 1,339,893$ 66,901,495
Right of way 285,857,353 - - - 285,857,353
Construction-in-progress 24,596,308 19,406,067 264,206 (9,825,686) 33,912,483
Total capital assets,
not being depreciated 377,264,502 19,406,067 1,513,445 (8,485,793) 386,671,331
Capital assets, being depreciated
Buildings and improvements 74,501,368 - - 239,074 74,740,442
Equipment and furniture 4,251,642 301,909 93,818 - 4,459,733
Vehicles 1,707,414 105,628 65,512 - 1,747,530
Infrastructure 227,891,159 - - 8,246,719 236,137,878
Total capital assets,
being depreciated 308,351,583 407,537 159,330 8,485,793 317,085,583
Less accumulated depreciation for
Buildings and improvements 37,403,112 2,555,713 - - 39,958,825
Equipment and furniture 2,661,053 352,866 134,381 - 2,879,538
Vehicles 991,704 177,730 39,552 - 1,129,882
Infrastructure 134,782,794 5,802,698 - - 140,585,492
Total accumulated depreciation 175,838,663 8,889,007 173,933 - 184,553,737
Total capital assets,
being depreciated, net 132,512,920 (8,481,470) (14,603) 8,485,793 132,531,846
Governmental activities
capital assets, net 509,777,422$ 10,924,597$ 1,498,842$ -$ 519,203,177
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
50
Depreciation expense was charged to the following functions in the Statement of Activities:
General governments 370,469$
Planning & development 24,630
Community services 1,410,739
Public works 6,121,935
Internal service funds 961,234
8,889,007$
Capital asset activity for business-type activities for the year ended June 30, 2021, is as follows:
Balance at Balance at
July 01, 2020 Additions Deletions June 30, 2021
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 1,621,723 - - 1,621,723
Software 20,255 - - 20,255
Total capital assets,
being depreciated 8,278,443 - - 8,278,443
Less accumulated depreciation for
Buildings and improvements 3,508,732 214,545 - 3,723,277
Equipment and furniture 1,470,536 59,416 - 1,529,952
Software 20,255 - - 20,255
Total accumulated
depreciation 4,999,523 273,961 - 5,273,484
Total capital assets,
being depreciated, net 3,278,920 (273,961) - 3,004,959
Business-type activities
capital assets, net 42,991,875$ (273,961)$ -$ 42,717,914$
Depreciation expense was charged to the following functions in the Statement of Activities:
Golf Course 273,961$
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
51
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, 2021:
Balance at Balance Due within
July 01, 2020 Additions Deletions June 30, 2021 One year
Governmental Activities
Compensated absences payable 888,491$ 950,309$ 888,491$ 950,309$ 252,322$
Copier lease payable 65,938 - 24,713 41,225 19,145
Fleet vehicle lease 533,174 - 210,381 322,793 182,254
Public works building lease 45,073 - 33,819 11,254 11,254
Intelesysone phone system 117,605 - 33,602 84,003 33,601
Net OPEB (asset)/liability (47,052) 147,622 - 100,570 -
Net pension liability 13,458,200 1,044,111 - 14,502,311 -
15,061,429$ 2,142,042$ 1,191,006$ 16,012,465$ 498,576$
Compensated absences, the net OPEB liability, 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. A description of the City’s
net OPEB (asset)/liability is detailed at Note 10.
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 $1,794, with
interest payable monthly at 9.5 percent.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
52
The minimum future lease obligations and the net present value of the lease payments as of June 30, 2021, are
as follows:
Total
22,208$
21,528
3,560
47,296
Less amount representing interest (6,071)
Outstanding Principal 41,225$
Year Ending June 30,
2022
2023
2024
Total Payments
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 $28,172. This lease agreement qualifies as a capital lease for accounting purposes and
therefore, has been recorded at the present value of the future minimum lease payment at the inception date.
The minimum future lease obligations and the net present value of the lease payments as of June 30, 2021, are
as follows:
Total
182,254$
115,393
25,146
Outstanding Principal 322,793$
2022
2023
2024
Year Ending June 30,
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, 2021 are as follows:
Total
11,254$
Outstanding Principal 11,254$
Year Ending June 30,
2022
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
53
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, 2021 are as follows:
Total
33,601$
33,601
16,801
Outstanding Principal 84,003$
2022
2023
2024
Year Ending June 30,
Note 6 - Interfund Receivables and Payables
The composition of current interfund receivable and payable balances is as follows:
Housing Non-Major
Due from Other Funds Authority Fund Governmental Total
General Fund 26,777$ 374,892$ 401,669$
Due to Other Funds
Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2021.
Note 7 - Interfund Transfers
Housing Non-Major Internal
Transfers In General Fund Authority Fund Governmental Service Fund Total
Capital Improvements Fund 3,670,423$ 278,062$ 4,939,796$ 87,986$ 8,976,267$
Non-major Governmental Funds 1,805,000 - - - 1,805,000
Golf Course Fund 875,000 - - - 875,000
Total 6,350,423$ 278,062$ 4,939,796$ 87,986$ 11,656,267$
Transfer Out
a. $3,670,423 was transferred from the General Fund to the Capital Improvement Fund to fund various capital
projects.
b. $278,062 was transferred from the Housing Authority Fund to the Capital Improvement Fund to fund various
capital projects.
c. $4,939,796 was transferred to the Capital Improvement Fund from various non-major funds to support capital
project operations and expenses.
d. $87,986 was transferred to the Capital Improvement Fund from the Internal Service Funds to support various
capital projects and preventative maintenance.
e. $1,805,000 was transferred from the General Fund to various non-major funds to support various administrative
operations and expenses within the City.
f. $875,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
54
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.
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%6.25%
Required employer contribution rates 12.361%8.794%7.732%
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 $2,581,158 for the year ended
June 30, 2021.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
55
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
As of June 30, 2021, the City reported a liability of $14,502,311 for its proportionate share of the collective net
pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019.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, 2019 and 2020
is as follows:
Proportion- June 30, 2019 0.13134 %
Proportion- June 30, 2020 0.13329 %
Change- Increase (Decrease)0.00195 %
For the year ended June 30, 2021, the City recognized pension expense of $2,310,874.
At June 30, 2021, the City reported deferred outflows and deferred inflows of resources related to pensions as
follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 2,581,158$ -$
Changes in assumptions - 103,436
Differences between expected and actual experience 747,347 -
Net difference between projected and actual earnings on
pension plan investments 430,814 28,508
Change in employer's proportion 320,761 -
Difference between the city's contribution and
proportionate share of contributions - 399,455
Total 4,080,080$ 531,399$
The $2,581,158 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.
Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
63,175$
383,605
314,112
206,631
967,523$ Total
Year Ended June 30,
2022
2023
2024
2025
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
56
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2020 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2019 total pension liability. The total pension liability in the June 30,
2019 actuarial valuation was determined using the following actuarial methods and assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
57
These geometric rates of return are summarized in the following table:
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 21,660,051$ 14,502,311$ 8,588,095$
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, 2021, there was one plan member.
There are no required contributions by plan members. During the 2020-2021 fiscal year the City made no
contributions to fund the Supplemental Pension Savings Plan.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
58
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’ $139/month for the calendar year 2020 and $143/month for calendar year 2021,
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, 2020, the most recent valuation date, the following current and former employees were covered by
the benefit terms of the plan:
Active employees 94
Inactive employees or beneficiaries currently receiving benefits 24
Total 118
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, 2021, the City made no contributions to the CERBT trust.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
59
Net OPEB Liability/(Asset)
Actuarial Assumptions – The net OPEB liability/(asset) in the June 30, 2020 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 5.50%
Inflation 2.25%
Investment Rate of Return 5.50%
Mortality (1)
Healthcare Trend Rate
6.7% for fiscal year 2021,
gradually decreasing over
several decades to an ultimate
rate of 3.8% in fiscal year 2076
and later years.
(1) Derived using CalPERS Membership Data for all Funds
Mortality rates were based on the CalPERS December 2017 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, 2020 valuation were based on the results of an actuarial
experience study for the period.
Change of Assumptions
The discount rate and long-term expected rate of return on OPEB plan investments of 5.50 percent used for the
June 30, 2020 valuation was decreased from 6.0 percent used for the June 30, 2019 valuation. The inflation
assumption was changed from 2.50 percent used for the June 30, 2020 valuation to 2.25 percent used for the
June 30, 2019 valuation. Additionally, healthcare trend rates were reset to reflect updated cost increase
expectations.
Discount Rate
The discount rate used to measure the total OPEB liability was 5.50 percent for the Plan. The projection of cash
flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the
actuarially determined contribution rates.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
60
Changes in Net OPEB Liability:
The changes in the net OPEB liability/(asset) for the Plan as of the measurement date June 30, 2020 are as
follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 1,580,740$ 1,627,792$ (47,052)$
Changes in the year
Service cost 88,219 - 88,219
Interest 97,183 - 97,183
Differences between expected
and actual experience 103,495 - -
Changes of assumptions 44,464 - 44,464
Net investment income - 88,052 (88,052)
Employer contributions - 98,490 (98,490)
Benefit payments (98,490) (98,490) -
Administrative expense - (803) 803
Net changes 234,871 87,249 147,622
Balance at June 30, 2021 1,815,611$ 1,715,041$ 100,570$
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 (4.50 percent) or 1-percentage-point
higher (6.50 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(4.50%)(5.50%)(6.50%)
Net OPEB Liability/(Asset)326,302$ 100,570$ (88,148)$
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 (5.7 percent decreasing to
2.8 percent) or 1-percentage-point higher (7.7 percent decreasing to 4.8 percent) than the current healthcare
cost trend rates:
1% Decrease Current Trend Rate 1% Increase
(5.7% decreasing (6.7% decreasing (7.7% decreasing
to 2.8%)to 3.8%)to 4.8%)
Net OPEB Liability/(Asset)(119,451)$ 100,570$ 371,004$
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
61
For the year ended June 30, 2021, the City recognized OPEB expense of $115,619. At June 30, 2021, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to measurement date 89,947$ -$
Changes in assumptions 39,904 41,158
Difference between expected and actual liability 141,388 -
Net difference between projected and investment earnings 21,690 -
Total 292,929$ 41,158$
The $89,947 reported as deferred outflows of resources related to OPEB resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the fiscal
year ending June 30, 2022. Other amounts reported as deferred outflows or deferred inflows of resources
related to OPEB will be recognized in as OPEB expense as follows:
27,058$
27,058
15,388
18,498
16,578
57,244
161,824$
2026
Thereafter
Total
Year Ended June 30,
2022
2023
2024
2025
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, 2021 was $11,381,922. The City currently funds its
OPEB obligations through the CERBT program, and although the Section 115 Trust is able to accept OPEB funds,
the City has no immediate plans to fund OPEB obligations through the Section 115 Trust.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
62
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 (Authority). The Authority is
composed of 123 California public entities and is organized under a joint powers agreement pursuant to
California Government Code §6500 et seq. The purpos e of the Authority 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 California JPIA began covering claims of
its members in 1978. Each member government has an elected official as its representative on the
Board of Directors. The Board operates through a nine-member Executive Committee.
Self-Insurance Programs of the CJPIA
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment
is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and
forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-
insurance programs is based on actuarial analysis. Costs are allocated to individual agencies based on payroll
and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
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 $100,000 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 $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s
total incurred costs within the second layer. (4) Incurred costs from $500,000 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.
Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a
combination of pooled self-insurance, reinsurance, and excess insurance.
Workers’ Compensation
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 $75,000 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 $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the
pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
63
For 2020-21 the Authority’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 through reinsurance policies, and Employer’s
Liability losses from $5 million to $10 million are pooled among members.
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 $250,000 deductible. The Authority has an aggregate limit of $20 million 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 $71,236,403. 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 and flood insurance on a portion
of its property. The earthquake insurance is part of the property protection insurance program of the Authority.
City of La Quinta property currently has earthquake protection in the amount of $25,000,000. There is
a deductible of 5% per unit of value with a minimum deductible of $100,000.
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.
Cyber Incident Insurance – The City of La Quinta purchases Cyber Incident Response insurance coverage through
the Authority. The maximum single limit of insurance is $1,000,000
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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
64
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.
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, 2021, 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, 2021, the City has committed $11,000,000.
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, 2021.
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, 2021, the
City has committed $10,000,000.
Committed to Fiscal Year 2020-2021 carryovers totaled $1,209,870 at June 30, 2021.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
65
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, 2021 is $11,423,931.
Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover
balances as of June 30, 2021 are $13,431,089. Accumulated resources related to the City’s sales tax Measure G is
$28,559,747 as of June 30, 2021.
Deficit Fund Balance
At June 30, 2021, the following funds had deficit fund balances:
Major Capital Projects Funds
Capital Improvement (1,377,164)$
Nonmajor Capital Projects Funds
Parks and Recreation (346,309)
Library Development (1,458,789)
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, 2022. 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, 2021, the Golf Course had a loss before transfers of
$647,109.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
66
Note 15 - Construction Commitments
Various construction projects were in progress at June 30, 2021. Projects costs are paid out of the capital
improvements fund. The following material construction commitments, for which funds have been encumbered,
existed at June 30, 2021, with an estimated cost to complete.
Expenditures
Project Contract to date as of Remaining
Project Name Number Amount June 30, 2021 Commitments
Capital Improvement Fund
Dune Palms Road Street Improvements 091004 2,650,000$ (2,602,450)$ 47,550$
Dune Palms Bridge Improvement 111205 18,176,565 (3,123,872) 15,052,693
SilverRock Infrastructure Improvements 141513 7,860,041 (5,954,888) 1,905,154
LQ Village Complete Streets- Road Diet Proj 151603 12,567,196 (11,955,639) 611,557
La Quinta X Park 151609 4,636,639 (3,657,379) 979,260
Citywide Drainage Enhancements 151612 9,025,846 (8,560,082) 465,764
HSIP Traffic Signal Interconnect Network 201602 2,268,323 (1,931,568) 336,755
La Quinta Landscape Renovation Improvement 201603 8,554,792 (3,346,849) 5,207,943
Civic Center Campus Lake/Irrigation Conver 201606 675,270 (151,007) 524,263
Silverrock Event Space 201608 7,304,503 (7,001,406) 303,097
Washington Street at Fred Waring Dr 201701 1,860,744 (1,591,719) 269,025
Eisenhower Retention Basin Landscape 201704 750,000 (365,961) 384,039
Ave 53 Jefferson St Roundabout 201709 2,101,617 (220,160) 1,881,457
Cove Public Restroom 201801 590,000 (516,459) 73,541
Corporate Yard Admin Offices & Crew 201805 411,013 (55,773) 355,240
Village Art Plaza Promenade & Cultural Campus 201901 610,000 (3,845) 606,155
Avenue 50 Bridge Spanning The Evacuation Channel 201902 16,349,000 (8,869) 16,340,131
LQ Skate Park Conver to Other Activity 201903 263,000 - 263,000
Hwy 111 Corridor Area Plan Implementation 201905 1,250,000 (331,204) 918,796
Fire Station 70 Revitalization 201907 684,000 (590,994) 93,006
Citywide Catch Basin Modification 201908 250,000 - 250,000
Citywide Misc ADA Improvements 201909 228,673 (214,098) 14,575
Washington St at Ave 50/Calle Tampico 201923 195,400 (20,745) 174,655
Monroe Street Pavement Rehab (Ave 52)202001 941,000 (52,583) 888,417
Citywide Miscellaneous ADA improvements 202002 184,000 (143,027) 40,973
Citywide Public Safety Camera System 202003 1,372,296 (1,257,350) 114,946
SilverRock Retention Basin Soil Stabilization 202007 437,250 (33,297) 403,954
Jefferson St/I-10 (contribution costs)999902 788,297 (753,310) 34,987
General Fund
SilverRock Event Space Modular Build 201806 927,097 (920,398) 6,699
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
67
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, 2021, the City made $295,727 in reimbursement payments to the owner leaving
an outstanding balance of $104,273.
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.
The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose trust fund).
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
68
Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City 26,279,132$
Cash and investments with fiscal agent 1,421
26,280,553$
See note 2 for required cash and investments disclosures.
Loans Receivable
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, 2021 is $1,013,494.
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, 2021, is $1,458,790.
Deferred Outflows of Resources
As debt is refunded, the difference between the carrying value of the refunded debt and the reacquisition price
is recorded as a deferred outflow of resources and amortized over the shorter of the new or refunded debt,
whichever is shorter. Activity during the fiscal year is comprised of the following:
Balance at Balance
July 1, 2020 Additions Deductions June 30, 2021
Deferred charge on refunding 9,715,975$ 10,391,710$ 3,216,181$ 16,891,504$
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
69
Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2021, follows:
Balance at Balance Due within
July 1, 2020 Additions Repayments June 30, 2021 One year
Tax allocation bonds 176,900,000$ 156,915,000$ 146,155,000$ 187,660,000$ 11,985,000$
City loans 32,587,178 739,933 3,238,833 30,088,278 3,303,610
Unamortized premiums/
discounts 9,827,234 - 11,240,583 (1,413,349) -
Total 219,314,412$ 157,654,933$ 160,634,416$ 216,334,929$ 15,288,610$
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.
During the current year, the Agency issued Tax allocation Refunding Bonds, Series 2021A to refund the 2013A
Tax Allocation Bonds. As of June 30, 2021, the 2013A Tax Allocation bonds were defeased.
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.
During the current year, the Agency issued Tax allocation Refunding Bonds, Series 2021A to refund the 2013B
Tax Allocation Bonds. As of June 30, 2021, the 2013B Tax Allocation bonds were defeased.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
70
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.
During the current year, the Agency issued Tax allocation Refunding Bonds, Series 2021A to refund the 2014 Tax
Allocation Refunding Bonds. As of June 30, 2021, the 2014 Tax Allocation Refunding bonds were defeased.
2016 Series A
On December 22, 2016, the La Quinta Redevelopment Project Areas No. 1 and 2 Subordinate Tax Allocation
Refunding Bonds 2016 Taxable Series A Bonds were issued for $35,055,000 by the Successor Agency to the La
Quinta Redevelopment Agency (the “Agency”) to refinance on an advance basis the La Quinta Redevelopment
Agency’s (the “Prior Agency”) previously issued $6,000,000 La Quinta Redevelopment Project Area No. 2,
Subordinate Taxable Tax Allocation Bonds, Series 2011 (the “2011 Project Area No. 2 Taxable Bonds”) of which
$5,810,000 was outstanding and the Prior Agency’s loan obligation under the Loan Agreement, dated February
3, 2004 as supplemented by the Second Supplemental Loan Agreement, dated as of March 1, 2011 (the “2011
Loan Obligation”) in connection with the La Quinta Financing Authority’s previously issued $28,850,000 Local
Agency Subordinate Taxable Revenue Bonds, 2011 Series A (the “2011 Taxable Housing Bonds”) of which
$26,635,000 was outstanding.
The Bonds were issued on a subordinate basis to the $65,600,000 Successor Agency to the La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding Bonds,
2014 Series. The Bonds are payable from and secured by the Pledged Tax Revenues, as defined herein, to be
derived from the La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2.
The principal of and interest on the Bonds are payable solely from the pledged tax revenues allocated to the
Successor Agency from the project areas. The principal balance of outstanding bonds at June 30, 2021, is
$29,380,000 with an unamortized discount of $196,811.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
71
The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency, in
whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026 or on
any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to be
redeemed, without premium, plus accrued interest to the redemption date.
Principal Interest Total
1,395,000$ 1,118,840$ 2,513,840$
1,430,000 1,079,255 2,509,255
1,465,000 1,035,479 2,500,479
1,510,000 988,315 2,498,315
1,565,000 937,680 2,502,680
8,695,000 3,780,171 12,475,171
11,455,000 1,781,109 13,236,109
1,865,000 134,565 1,999,565
29,380,000$ 10,855,414$ 40,235,414$
Year Ending June 30,
2022
2023
2024
2025
2026
2027-2031
2032-2036
2037-2040
2021 Series A
On April 14, 2021, the Agency issued $156,915,000 in Series 2021 A Tax Allocation Refunding Bonds to refund
the Series 2013 A and B and Series 2014 A Tax Allocation Bonds.
The bonds are payable in annual installments ranging from $4,785,000 to $13,610,000 until maturity on
September 1, 2034. Interest is payable semiannually on March 1 and September 1 of each year, at a rate of
2.774%. Bonds outstanding at June 30, 2021 were $156,915,000. The principal and interest on the bonds are
payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas.
These bonds resulted in a full defeasance of the 2013 A and B and 2014 A Tax Allocation Bonds, and the related
liability has been removed from the financial statement of the City. The refunding resulted in a deferred loss of
$10,391,710.
Future debt service requirements on these bonds are as follows:
Principal Interest Total
10,590,000$ 2,181,901$ 12,771,901$
11,760,000 2,449,336 14,209,336
11,790,000 2,405,638 14,195,638
11,845,000 2,338,010 14,183,010
11,920,000 2,227,650 14,147,650
62,415,000 8,088,657 70,503,657
36,595,000 1,488,380 38,083,380
156,915,000$ 21,179,572$ 178,094,572$
Year Ending June 30,
2027-2031
2032-2035
2022
2023
2024
2025
2026
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
72
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, 2021, principal and interest due to the City of La Quinta was
$30,088,278, and is included as part of the due from other governments balance in the City’s General and the
Housing Authority Funds.
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.
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 $218,329,986 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 $20,798,995 and the debt service obligation on the bonds was $17,340,464.
Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at
June 30, 2021.
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, 2021 was $13,749,183.
City of La Quinta, California
Notes to Financial Statements
June 30, 2021
73
Note 19 - Subsequent Events
Highway 111 Bridge Funding:
In November 2020, Caltrans advised the City that the Highway Bridge Planning (HBP) Funding Program had been
oversubscribed for FY 2020/21 and 2021/22 and there is no additional programming capacity for projects
already in construction or ready to advertise.
At the direction of the City Council in June 2021, the City agreed to provide ‘at risk’ advance funding using the
Advance Construction Procedure outlined in Section 3.7 of the Caltrans Local Procedures Manual, and Caltrans
approved the City’s request.
The environmental, engineering/design and right-of-way phases are complete and are fully funded. The
construction phase which includes construction, construction engineering, and contingency is estimated at
$20,869,098. The HBP Funding will ultimately contribute 88.53% or up to $14,936,122 toward eligible
(Construction Phase) costs. This is the amount the City is required to advance. Staff and the Finance Advisory
Committee (FAC) recommend using a combination of Unassigned Reserves and Measure G Reserves for this
advance funding due to their current balances. The City anticipates these funds to be reimbursed within two to
five fiscal years. Council approved the use of Measure G reserves in the amount of $7,468,061 and Unassigned
reserves in the amount of $7,468,061, for a total of $14,936,122.
American Rescue Plan Act Funds
As part of its budget process, the U.S. Department of Treasury allocated $9,987,009 of American Rescue Plan Act
(ARPA) Funds to the City. Allocations to the City started in July 2021 for $4,993,504. Further, the Department of
Treasury will allocate the second tranche of $4,993,505 in ARPA funding to the City in August 2022.
See Note to Required Supplementary Information 74
City of La Quinta, California
Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 123,333,667$ 123,333,667$ 123,333,667$ -$
Resources (Inflows)
Taxes 38,596,000 44,878,000 51,515,854 6,637,854
Licenses and permits 1,136,800 1,186,800 2,020,596 833,796
Intergovernmental 8,479,700 9,343,634 8,551,964 (791,670)
Charges for services 785,500 575,000 964,710 389,710
Use of money and property 845,000 845,000 1,569,149 724,149
Fines and forfeitures 290,000 264,000 779,606 515,606
Miscellaneous 593,100 593,100 642,949 49,849
Extraordinary Item - - 591,946 591,946
Amounts available for appropriations 174,059,767 181,019,201 189,970,441 8,951,240
Charges to Appropriation (Outflows)
General government
Legislative 292,900 292,900 233,536 59,364
City manager 707,000 767,000 669,516 97,484
City attorney 565,000 565,000 457,354 107,646
Marketing 1,129,800 1,110,300 1,105,482 4,818
Human resources 264,400 304,400 215,250 89,150
City clerk 593,400 639,100 494,175 144,925
Fiscal services 1,393,400 1,423,400 1,304,354 119,046
Central services 2,250,700 2,497,200 3,152,513 (655,313)
The Hub customer services 1,089,500 908,300 830,950 77,350
Public safety
Police 17,506,700 17,204,700 16,479,907 724,793
Code compliance 1,352,200 1,196,800 1,138,317 58,483
Fire 8,021,700 9,165,422 6,667,293 2,498,129
Planning and development
Current planning 519,100 513,900 520,084 (6,184)
Public buildings 1,321,700 1,140,700 1,119,814 20,886
Building & safety 939,000 777,100 717,998 59,102
Administration 665,600 519,300 639,563 (120,263)
Community services
Community services admin 700,600 700,600 699,784 816
Wellness center 735,800 543,800 495,567 48,233
Recreation programs/special events 501,600 438,700 208,500 230,200
Park maintenance 1,899,500 1,670,800 1,782,191 (111,391)
Public works
Administration 722,800 719,200 509,466 209,734
Development services 389,600 390,200 354,895 35,305
Maintenance/operations - street 489,100 484,300 425,743 58,557
Engineering services 830,700 999,000 640,734 358,266
Capital outlay 156,000 156,000 440,489 (284,489)
Transfers out 4,080,000 3,951,900 6,350,423 (2,398,523)
Total charges to appropriations 49,117,800 49,080,022 47,653,898 1,426,124
Budgetary Fund Balance, June 30 124,941,967$ 131,939,179$ 142,316,543$ 10,377,364$
Budget Amounts
See Note to Required Supplementary Information 75
City of La Quinta, California
Budgetary Comparison Schedule – Housing Authority
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 22,818,595$ 22,818,595$ 22,818,595$ -$
Resources (Inflows)
Use of money and property 235,300 205,300 1,048,695 843,395
Extraordinary item - 1,061,456 147,987 (913,469)
Miscellaneous 313,000 670,000 1,820 (668,180)
Amounts available for appropriations 23,366,895 24,755,351 24,017,097 (738,254)
Charges to Appropriation (Outflows)
Planning and development 822,300 1,270,062 851,820 418,242
Community services 250,000 300,000 300,000 -
Transfer out - - 278,062 (278,062)
Total charges to appropriations 1,072,300 1,570,062 1,429,882 140,180
Budgetary Fund Balance, June 30 22,294,595$ 23,185,289$ 22,587,215$ (598,074)$
Budget Amounts
76
City of La Quinta, California
Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan
Last 10 Years*
2015 2016 2017 2018 2019 2020 2021
Proportion of the net pension liability 0.1034%0.1260%0.1257%0.1272%0.1287%0.13134%0.13329%
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$ 14,502,311$
Covered payroll 5,421,945$ 5,480,758$ 5,569,002$ 5,739,416$ 6,064,875$ 6,669,204$ 7,066,830$
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%205.22%
Plan fiduciary net position as a percentage of the
total pension liability 79.82%78.40%74.06%73.31%75.30%75.30%77.71%
* - Fiscal year 2015 was the first year of implementation, therefore, only seven 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.
77
City of La Quinta, California
Schedule of Pension Plan Contributions – Miscellaneous Plan
Last 10 Years*
2015 2016 2017 2018 2019 2020 2021
Actuarially determined contributions -
miscellaneous 728,073$ 797,603$ 949,231$ 1,061,439$ 1,284,275$ 1,479,137$ 2,581,158$
Contributions in relation to the actuarially
determined contribution (728,073) (797,603) (949,231) (1,061,439) (1,284,275) (1,479,137) (2,581,158)
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$
Covered payroll 5,480,758$ 5,569,002$ 5,739,416$ 6,064,875$ 6,669,204$ 7,066,830$ 6,238,425$
Contributions as a percentage of covered payroll 13.28%14.32%16.54%17.50%19.26%20.93%41.38%
* - Fiscal year 2015 was the first year of implementation, therefore, only seven 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.
78
City of La Quinta, California
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
Last 10 Years*
2019 2020 2021
Total OPEB Liability
Service cost 93,438$ 85,174$ 88,219$
Interest 100,177 93,071 97,183
Differences between expected and actual experience 71,533 - 103,495
Changes of assumptions (44,229) (14,219) 44,464
Benefit payments (86,570) (98,584) (98,490)
Net Change in Total OPEB Liability 134,349 65,442 234,871
Total OPEB liability - beginning 1,380,949 1,515,298 1,580,740
Total OPEB liability - ending 1,515,298$ 1,580,740$ 1,815,611$
Plan Fiduciary Net Position (FNP)
Employer contributions 1,609,970$ 98,584$ 98,490$
Net investment income (1,680) 106,805 88,052
Benefit payments (86,570) (98,584) (98,490)
Administrative expense (406) (327) (803)
Net Change in Plan Fiduciary Net Position 1,521,314 106,478 87,249
Plan Fiduciary Net Position- Beginning of Year - 1,521,314 1,627,792
Plan Fiduciary Net Position- End of Year 1,521,314$ 1,627,792$ 1,715,041$
Net OPEB liability/(asset) - End of Year (6,016)$ (47,052)$ 100,570$
Fiduciary Net Position as a percentage of the Total OPEB Liability 100.4%103.0%94.5%
Covered-employee payroll 6,064,875 6,669,204 7,066,830
Net OPEB liability/(asset) as a percentage of covered-employee payroll -0.1%-0.7%1.4%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation.
Changes in Assumptions
The discount rate and long-term expected rate of return changed from 6.00 percent used for the June 30, 2019 measurement
date to 5.50 percent used for the June 30, 2020 measurement date.
The inflation assumption was changed from 2.50 percent used for the June 30, 2019 measurement date to 2.25 percent used
for the June 30, 2020 measurement date.
For the June 30, 2020 measurement date, healthcare trend rates were reset to reflect updated cost increase expectations.
79
City of La Quinta, California
Schedule of OPEB Contributions
Last 10 Years*
2019 2020 2021
Actuarially determined contribution (ADC)88,280$ 90,229$ 86,939$
Contributions in relation to the (ADC)98,584 98,490 89,947
Contribution deficiency (excess)(10,304) (8,261) (3,008)
Covered payroll 6,669,204$ 7,066,830$ 6,238,425$
Contributions as a percentage of payroll 1.5%1%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 2.25%
Healthcare Trend Rate 7% in the first year, trending down to 4% over 58 years.
Investment rate of return 5.50%
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, 2021
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, 2021:
Budget Actual Variance
General Fund
Planning and Development 2,951,000$ 2,997,459$ (46,459)$
Capital Outlay 156,000 440,489 (284,489)
Transfers Out 3,951,900 6,350,423 (2,398,523)
South Coast Air Quality
Planning and Development 48,900 57,413 (8,513)
SLESA
Public Safety 100,000 101,530 (1,530)
Law Enforcement
Public Safety 24,600 42,263 (17,663)
Measure A
Public Works - 8,770 (8,770)
Parks and Recreation
Transfers out 959,713 962,469 (2,756)
81
This page intentionally left blank
Supplementary Information
June 30, 2021
City of La Quinta, California
83
City of La Quinta, California
Other Governmental Funds
June 30, 2021
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 developer fees received under the provisions of the Quimby
Act for park development and improvements. Capital projects to be funded from this source will be budgeted
and expended in a separate capital projects fund.
La Quinta Public Safety Officer Fund – To account for contributions to be distributed to public safety officers
disabled or killed in the line of duty.
Art in Public Places – To account for development fees paid in lieu of acquisition and installation of approved
artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of
artworks at approved sites.
South Coast Air Quality Fund – To account for contributions from the South Coast Air Quality Management
District. Use is limited to reduction and control of airborne pollutants.
AB 939 Fund – To account for the State mandated program to reduce waste sent to the landfills through
recycling efforts.
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.
84
City of La Quinta, California
Other Governmental Funds
June 30, 2021
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.
Maintenance Facilities DIF, Transportation Fund, Parks and Recreations Fund, Library Development Fund,
Community Center Fund, Street Facility Fund, Park Facility Fund, Fire Facility Fund – To account for the
accumulation of resources provided through developer fees for the acquisition, construction, or improvement of
the City’s infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight
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.
85
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2021
State Library and Federal Lighting and
Gas Tax Museum Assistance SLESA Landscaping
Assets
Pooled cash and investments 1,348,555$ 8,148,426$ 4,969$ 298,050$ 528,572$
Receivables
Accounts - - - - -
Taxes 73,478 - - - 42,593
Accrued interest 536 3,263 117 119 212
Prepaid costs - 1,019 - - -
Due from other governments 63,882 950,702 - - -
Total assets 1,486,451$ 9,103,410$ 5,086$ 298,169$ 571,377$
Liabilities and Fund Balances
Liabilities
Accounts payable 9,230$ 111,424$ -$ 32,694$ 72,138$
Accrued liabilities 13,452 2,542 - - 9,239
Unearned revenues - - - - -
Due to other governments - - - - -
Due to other funds - - - - -
Total liabilities 22,682 113,966 - 32,694 - 81,377
Deferred Inflow of Resources
Unavailable revenues - - - - -
Fund Balances
Nonspendable
Prepaid costs - 1,019 - - -
Restricted for
Planning and development projects - - - - -
Public safety - - - 265,475 -
Community services - 8,988,425 5,086 - -
Public works 1,463,769 - - - 490,000
Capital projects - - - - -
Unassigned - - - - -
Total fund balances 1,463,769 8,989,444 5,086 265,475 490,000
Total liabilities and fund balances 1,486,451$ 9,103,410$ 5,086$ 298,169$ 571,377$
Special Revenue Funds
86
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2021
La Quinta Public Art in South Coast
Quimby Safety Officer Public Places Air Quality AB 939
Assets
Pooled cash and investments -$ 49,549$ 764,308$ 39,854$ 802,513$
Receivables
Accounts - - - - -
Taxes - - - - -
Accrued interest - 20 306 16 321
Prepaid costs - - - - -
Due from other governments - - - 13,500 13,685
Total assets -$ 49,569$ 764,614$ 53,370$ 816,519$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ 20,846$ 9,866$
Accrued liabilities - - - - -
Unearned revenues - - - - -
Due to other governments - - - - -
Due to other funds - - - - -
Total liabilities - - - - 20,846 9,866
Deferred Inflow of Resources
Unavailable revenues - - - - -
Fund Balances
Nonspendable
Prepaid costs - - - - -
Restricted for
Planning and development projects - - - 32,524 806,653
Public safety - 49,569 - - -
Community services - - 764,614 - -
Public works - - - - -
Capital projects - - - - -
Unassigned - - - - -
Total fund balances - 49,569 764,614 32,524 806,653
Total liabilities and fund balances -$ 49,569$ 764,614$ 53,370$ 816,519$
Special Revenue Funds
87
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2021
Capital Projects
Funds
Transportation Maintenance
Law Economic Uniform Facilities
Enforcement Measure A Development AB 1379 Mitigation Fee DIF
Assets
Pooled cash and investments 450,038$ 2,644,231$ 3,055,953$ 52,006$ 89,104$ 46,996$
Receivables
Accounts - - 500,000 - - -
Taxes - 553,978 - - - -
Accrued interest 180 1,059 1,224 21 - 19
Prepaid costs - - - - - -
Due from other governments - - - - - -
Total assets 450,218$ 3,199,268$ 3,557,177$ 52,027$ 89,104$ 47,015$
Liabilities and Fund Balances
Liabilities
Accounts payable 2,587$ -$ 7,510$ 933$ 81,647$ -$
Accrued liabilities - - - - - -
Unearned revenues - - - - - -
Due to other governments - - - - - -
Due to other funds 28,583 - - - - -
Total liabilities 31,170 - 7,510 933 81,647 -
Deferred Inflow of Resources
Unavailable revenues - - 500,000 - - -
Fund Balances
Nonspendable
Prepaid costs - - - - - -
Restricted for
Planning and development projects - - - 51,094 7,457 47,015
Public safety 419,048 - - - - -
Community services - - 3,049,667 - - -
Public works - 3,199,268 - - - -
Capital projects - -- - - -
Unassigned - -- - - -
Total fund balances 419,048 3,199,268 3,049,667 51,094 7,457 47,015
Total liabilities and fund balances 450,218$ 3,199,268$ 3,557,177$ 52,027$ 89,104$ 47,015$
Special Revenue Funds
88
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2021
Parks and Library
Infrastructure Civic Center Transportation Recreation Development
Assets
Pooled cash and investments 19,391$ 498,420$ 2,265,582$ -$ -$
Receivables
Accounts - - - - -
Taxes - - - - -
Accrued interest 8 200 907 - -
Prepaid costs - - - - -
Due from other governments - - - -
Total assets 19,399$ 498,620$ 2,266,489$ -$ -$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ -$
Accrued liabilities - - - -
Unearned revenues - - - -
Due to other governments - - - - 1,458,789
Due to other funds - - - 346,309 -
Total liabilities - - - 346,309 1,458,789
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 19,399 498,620 2,266,489 - -
Unassigned - - - (346,309) (1,458,789)
Total fund balances 19,399 498,620 2,266,489 (346,309) (1,458,789)
Total liabilities and fund balances 19,399$ 498,620$ 2,266,489$ -$ -$
Capital Projects Funds
89
City of La Quinta, California
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2021
Debt Service
Fund
Total
Community Financing Governmental
Center Street Facility Park Facility Fire Facility Authority Funds
Assets
Pooled cash and investments 234,292$ 43,270$ 5,996$ 197,181$ 1,100$ 21,588,356$
Receivables
Accounts - - - - - 500,000
Taxes - - - - - 670,049
Accrued interest 94 17 - 79 - 8,718
Prepaid costs - - - - - 1,019
Due from other governments - - - - - 1,041,769
Total assets 234,386$ 43,287$ 5,996$ 197,260$ 1,100$ 23,809,911$
Liabilities and Fund Balances
Liabilities
Accounts payable -$ -$ -$ -$ 1,100$ 349,975$
Accrued liabilities - - - - - 25,233
Unearned revenues - - - - - -
Due to other governments - - - - - 1,458,789
Due to other funds - - - - - 374,892
Total liabilities - - - - 1,100 2,208,889
Deferred Inflow of Resources
Unavailable revenues - - - - - 500,000
Fund Balances
Nonspendable
Prepaid costs - - - - - 1,019
Restricted for
Planning and development projects - - - - - 944,743
Public safety - - - 197,260 - 931,352
Community services - - 5,996 - - 12,813,788
Public works - 43,287 - - - 5,196,324
Capital projects 234,386 - - - - 3,018,894
Unassigned - - - - - (1,805,098)
Total fund balances 234,386 43,287 5,996 197,260 - 21,101,022
Total liabilities and fund balances 234,386$ 43,287$ 5,996$ 197,260$ 1,100$ 23,809,911$
Capital Projects Funds
90
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds
Year Ended June 30, 2021
State Library and Federal Lighting and
Gas Tax Museum Assistance SLESA Landscaping
Revenues
Taxes -$ -$ -$ -$ -$
Assessments - - - - 984,435
Intergovernmental 1,648,708 2,974,364 293,162 156,727 -
Use of money and property 7,827 12,048 3,471 1,890 (2,629)
Developer participation - - - - -
Miscellaneous - 1,011 - - -
Total revenues 1,656,535 2,987,423 296,633 158,617 981,806
Expenditures
Current
General government - - - - -
Public safety - - - 101,530 -
Planning and development - - - - -
Community services - 2,047,533 - - -
Public works 937,025 - - - 2,010,646
Capital outlay - 551 - - -
Debt service
Interest and fiscal charges - - - - -
Total expenditures 937,025 2,048,084 - 101,530 2,010,646
Excess (Deficiency) of Revenues
over (under) Expenditures 719,510 939,339 296,633 57,087 (1,028,840)
Other Financing Sources (Uses)
Transfers in 50,000 - - - 871,000
Transfers out (299,384) - (286,276) - -
Total other financing sources (uses)(249,384) - (286,276) - 871,000
Net Change in Fund Balances 470,126 939,339 10,357 57,087 (157,840)
Fund Balances, Beginning of Year 993,643 8,050,105 (5,271) 208,388 647,840
Fund Balances, End of Year 1,463,769$ 8,989,444$ 5,086$ 265,475$ 490,000$
Special Revenue Funds
91
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds
Year Ended June 30, 2021
La Quinta Public Art in South Coast
Quimby Safety Officer Public Places Air Quality AB 939
Revenues
Taxes -$ -$ -$ -$ 60,486$
Assessments - - - - -
Intergovernmental - - - 66,268 10,303
Use of money and property (21,813) 12 956 151 (168)
Developer participation 57,228 - 84,977 - -
Miscellaneous - - - - -
Total revenues 35,415 12 85,933 66,419 70,621
Expenditures
Current
General government - - - - -
Public safety - - - - -
Planning and development - - - 57,413 53,932
Community services - - 49,845 - -
Public works - - - - -
Capital outlay - - 13,500 - -
Debt service
Interest and fiscal charges - - - - -
Total expenditures - - 63,345 57,413 53,932
Excess (Deficiency) of Revenues
over (under) Expenditures 35,415 12 22,588 9,006 16,689
Other Financing Sources (Uses)
Transfers in - 2,000 50,000 - -
Transfers out (1,600,989) - - - -
Total other financing sources (uses)(1,600,989) 2,000 50,000 - -
Net Change in Fund Balances (1,565,574) 2,012 72,588 9,006 16,689
Fund Balances, Beginning of Year 1,565,574 47,557 692,026 23,518 789,964
Fund Balances, End of Year -$ 49,569$ 764,614$ 32,524$ 806,653$
Special Revenue Funds
92
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds
Year Ended June 30, 2021
Capital Projects
Fund
Transportation Maintenance
Law Economic Uniform Facilities
Enforcement Measure A Development AB 1379 Mitigation Fee DIF
Revenues
Taxes -$ 1,917,446$ -$ -$ -$ -$
Assessments - - - - - -
Intergovernmental 10,486 - - 17,112 - -
Use of money and property (10,397) 23,217 (21,876) 227 (4,040) 691
Developer participation - - - - - 46,324
Miscellaneous - - - - - -
Total revenues 89 1,940,663 (21,876) 17,339 (4,040) 47,015
Expenditures
Current
General government - - - - - -
Public safety 42,263 - - - - -
Planning and development - - 1,494,374 3,310 - -
Community services - - - - - -
Public works - 8,770 - - - -
Capital outlay - - - - - -
Debt service
Interest and fiscal charges - - - - - -
Total expenditures 42,263 8,770 1,494,374 3,310 - -
Excess (Deficiency) of Revenues
over (under) Expenditures (42,174) 1,931,893 (1,516,250) 14,029 (4,040) 47,015
Other Financing Sources (Uses)
Transfers in 332,000 - 500,000 - - -
Transfers out (1,085,899) (260,085) - - - -
Total other financing sources (uses)(753,899) (260,085) 500,000 - - -
Net Change in Fund Balances (796,073) 1,671,808 (1,016,250) 14,029 (4,040) 47,015
Fund Balances, Beginning of Year 1,215,121 1,527,460 4,065,917 37,065 11,497 -
Fund Balances, End of Year 419,048$ 3,199,268$ 3,049,667$ 51,094$ 7,457$ 47,015$
Special Revenue Funds
93
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds
Year Ended June 30, 2021
Parks and Library
Infrastructure Civic Center Transportation Recreation Development
Revenues
Taxes -$ -$ -$ -$ -$
Assessments - - - - -
Intergovernmental - - - - -
Use of money and property (9) 2,828 (5,543) (5,939) -
Developer participation - 194,521 693,586 328,072 61,531
Miscellaneous - -- - -
Total revenues (9) 197,349 688,043 322,133 61,531
Expenditures
Current
General government - - - - -
Public safety - - - - -
Planning and development - - - - -
Community services - - - - -
Public works - - 400,001 - -
Capital outlay - - - - -
Debt service
Interest and fiscal charges - - - - 15,133
Total expenditures - - 400,001 - 15,133
Excess (Deficiency) of Revenues
over (under) Expenditures (9) 197,349 288,042 322,133 46,398
Other Financing Sources (Uses)
Transfers in - - - - -
Transfers out - - (343,055) (962,469) -
Total other financing sources (uses)- - (343,055) (962,469) -
Net Change in Fund Balances (9) 197,349 (55,013) (640,336) 46,398
Fund Balances, Beginning of Year 19,408 301,271 2,321,502 294,027 (1,505,187)
Fund Balances, End of Year 19,399$ 498,620$ 2,266,489$ (346,309)$ (1,458,789)$
Capital Projects Funds
94
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds
Year Ended June 30, 2021
Debt Service
Fund
Total
Community Financing Governmental
Center Street Facility Park Facility Fire Facility Authority Funds
Revenues
Taxes -$ -$ -$ -$ -$ 1,977,932$
Assessments - - - - - 984,435
Intergovernmental - - - - - 5,177,130
Use of money and property 752 62 (47) 867 1,100 (16,362)
Developer participation 142,520 4,095 320 60,357 - 1,673,531
Miscellaneous - - - - - 1,011
Total revenues 143,272 4,157 273 61,224 1,100 9,797,677
Expenditures
Current
General government - - - - 1,100 1,100
Public safety - - - - - 143,793
Planning and development - - - - - 1,609,029
Community services - - - - - 2,097,378
Public works - - - - - 3,356,442
Capital outlay - - - - - 14,051
Debt service
Interest and fiscal charges - - - - - 15,133
Total expenditures - - - - 1,100 7,236,926
Excess (Deficiency) of Revenues
over (under) Expenditures 143,272 4,157 273 61,224 - 2,560,751
Other Financing Sources (Uses)
Transfers in - - - - - 1,805,000
Transfers out (101,639) - - - - (4,939,796)
Total other financing sources (uses)(101,639) - - - - (3,134,796)
Net Change in Fund Balances 41,633 4,157 273 61,224 - (574,045)
Fund Balances, Beginning of Year 192,753 39,130 5,723 136,036 - 21,675,067
Fund Balances, End of Year 234,386$ 43,287$ 5,996$ 197,260$ -$ 21,101,022$
Capital Projects Funds
95
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
State Gas Tax
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 993,643$ 993,643$ 993,643$ -$
Resources (Inflows)
Intergovernmental 1,719,400 1,732,800 1,648,708 (84,092)
Use of money and property 9,000 9,000 7,827 (1,173)
Transfers in 50,000 50,000 50,000 -
Amounts available for
appropriations 2,772,043 2,785,443 2,700,178 (85,265)
Charges to Appropriation (Outflows)
Public works 980,200 1,062,200 937,025 125,175
Transfers out 795,100 1,226,569 299,384 927,185
Total charges to
appropriations 1,775,300 2,288,769 1,236,409 1,052,360
Budgetary Fund Balance, June 30 996,743$ 496,674$ 1,463,769$ 967,095$
Budget Amounts
96
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Library and Museum
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 8,050,105$ 8,050,105$ 8,050,105$ -$
Resources (Inflows)
Intergovernmental 2,727,000 2,727,000 2,974,364 247,364
Use of money and property 80,000 80,000 12,048 (67,952)
Miscellaneous revenue 1,500 200 1,011 811
Amounts available for
appropriations 10,858,605 10,857,305 11,037,528 180,223
Charges to Appropriation (Outflows)
Community services 1,710,100 2,313,100 2,047,533 265,567
Capital Outlay 5,000 5,000 551 4,449
Total charges to
appropriations 1,715,100 2,318,100 2,048,084 270,016
Budgetary Fund Balance, June 30 9,143,505$ 8,539,205$ 8,989,444$ 450,239$
Budget Amounts
97
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Federal Assistance
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (5,271)$ (5,271)$ (5,271)$ -$
Resources (Inflows)
Intergovernmental 141,900 147,472 293,162 145,690
Use of money and property - - 3,471 3,471
Amounts available for
appropriations 136,629 142,201 291,362 149,161
Charges to Appropriation (Outflows)
Public Works 20,000 20,000 - 20,000
Transfers out 121,900 301,339 286,276 15,063
Total charges to
appropriations 141,900 321,339 286,276 35,063
Budgetary Fund Balance, June 30 (5,271)$ (179,138)$ 5,086$ 184,224$
Budget Amounts
98
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
SLESA
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 208,388$ 208,388$ 208,388$ -$
Resources (Inflows)
Intergovernmental 100,000 100,000 156,727 56,727
Use of money and property 1,000 1,000 1,890 890
Amounts available for
appropriations 309,388 309,388 367,005 57,617
Charges to Appropriation (Outflows)
Public safety 100,000 100,000 101,530 (1,530)
Budgetary Fund Balance, June 30 209,388$ 209,388$ 265,475$ 56,087$
Budget Amounts
99
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Lighting and Landscaping
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 647,840$ 647,840$ 647,840$ -$
Resources (Inflows)
Assessments 996,000 976,100 984,435 8,335
Use of money and property 10,000 10,000 (2,629) (12,629)
Transfers in 871,000 871,000 871,000 -
Amounts available for
appropriations 2,524,840 2,504,940 2,500,646 (4,294)
Charges to Appropriation (Outflows)
Public works 1,876,600 2,126,600 2,010,646 115,954
Budgetary Fund Balance, June 30 648,240$ 378,340$ 490,000$ 111,660$
Budget Amounts
100
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Quimby
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,565,574$ 1,565,574$ 1,565,574$ -$
Resources (Inflows)
Use of money and property 30,000 30,000 (21,813) (51,813)
Developer participation 50,000 50,000 57,228 7,228
Amounts available for
appropriations 1,645,574 1,645,574 1,600,989 (44,585)
Charges to Appropriation (Outflows)
Transfers out - 2,781,625 1,600,989 1,180,636
Budgetary Fund Balance, June 30 1,645,574$ (1,136,051)$ -$ 1,136,051$
Budget Amounts
101
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Public Safety
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 47,557$ 47,557$ 47,557$ -$
Resources (Inflows)
Use of money and property 600 600 12 (588)
Transfers in 2,000 2,000 2,000 -
Amounts available for
appropriations 50,157 50,157 49,569 (588)
Budgetary Fund Balance, June 30 50,157$ 50,157$ 49,569$ (588)$
Budget Amounts
102
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Art in Public Places
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 692,026$ 692,026$ 692,026$ -$
Resources (Inflows)
Use of money and property 6,000 6,000 956 (5,044)
Developer participation 55,000 65,000 84,977 19,977
Transfer In 50,000 50,000 50,000 -
Amounts available for
appropriations 803,026 813,026 827,959 14,933
Charges to Appropriation (Outflows)
Community services 60,000 60,000 49,845 10,155
Capital outlay 50,000 50,000 13,500 36,500
Transfers out - 615,700 - 615,700
Total charges to
appropriations 110,000 725,700 63,345 662,355
Budgetary Fund Balance, June 30 693,026$ 87,326$ 764,614$ 677,288$
Budget Amounts
103
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
South Coast Air Quality
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 23,518$ 23,518$ 23,518$ -$
Resources (Inflows)
Intergovernmental 52,000 52,000 66,268 14,268
Use of money and property 1,000 1,000 151 (849)
Amounts available for
appropriations 76,518 76,518 89,937 13,419
Charges to Appropriation (Outflows)
Planning and development 42,200 48,900 57,413 (8,513)
Budgetary Fund Balance, June 30 34,318$ 27,618$ 32,524$ 4,906$
Budget Amounts
104
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
AB 939
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 789,964$ 789,964$ 789,964$ -$
Resources (InFlows)
Taxes 61,000 61,000 60,486 (514)
Intergovernmental - - 10,303 10,303
Use of money and property 15,000 15,000 (168) (15,168)
Amounts available for
appropriations 865,964 865,964 860,585 (5,379)
Charges to Appropriation (Outflows)
Planning and development 100,000 250,000 53,932 196,068
Budgetary Fund Balance, June 30 765,964$ 615,964$ 806,653$ 190,689$
Budget Amounts
105
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Law Enforcement
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,215,121$ 1,215,121$ 1,215,121$ -$
Resources (Inflows)
Intergovernmental 17,000 24,600 10,486 (14,114)
Use of money and property 10,100 10,100 (10,397) (20,497)
Transfer In - 332,000 332,000 -
Amounts available for
appropriations 1,242,221 1,581,821 1,547,210 (34,611)
Charges to Appropriation (Outflows)
Public safety 17,000 24,600 42,263 (17,663)
Transfers out 1,000,000 1,372,296 1,085,899 286,397
Total Charges to Appropriations 1,017,000 1,396,896 1,128,162 268,734
Budgetary Fund Balance, June 30 225,221$ 184,925$ 419,048$ 234,123$
Budget Amounts
106
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Measure A
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,527,460$ 1,527,460$ 1,527,460$ -$
Resources (Inflows)
Taxes 1,299,000 1,499,000 1,917,446 418,446
Use of money and property 20,000 20,000 23,217 3,217
Amounts available for
appropriations 2,846,460 3,046,460 3,468,123 421,663
Charges to Appropriation (OutFlows)
Public Works - - 8,770 (8,770)
Transfers out 1,263,900 2,455,084 260,085 2,194,999
Total charges to
appropriations 1,263,900 2,455,084 268,855 2,186,229
Budgetary Fund Balance, June 30 1,582,560$ 591,376$ 3,199,268$ 2,607,892$
Budget Amounts
107
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
Economic Development
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,065,917$ 4,065,917$ 4,065,917$ -$
Resources (Inflows)
Use of money and property 40,000 40,000 (21,876) (61,876)
Transfer in - 609,100 500,000 (109,100)
Amounts available for
appropriations 4,105,917 4,715,017 4,544,041 (170,976)
Charges to Appropriation (Outflows)
Planning and development 10,000 1,630,500 1,494,374 136,126
Budgetary Fund Balance, June 30 4,095,917$ 3,084,517$ 3,049,667$ (34,850)$
Budget Amounts
108
City of La Quinta, California
Budgetary Comparison Schedule – Special Revenue Fund
AB 1379
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 37,065$ 37,065$ 37,065$ -$
Resources (Inflows)
Intergovernmental 18,000 18,000 17,112 (888)
Use of money and property 200 200 227 27
Amounts available for
appropriations 55,265 55,265 54,404 (861)
Charges to Appropriation (Outflows)
Planning and development 4,400 4,400 3,310 1,090
Budgetary Fund Balance, June 30 50,865$ 50,865$ 51,094$ 229$
Budget Amounts
109
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Capital Improvement
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (3,664,785)$ (3,664,785)$ (3,664,785)$ -$
Resources (Inflows)
Intergovernmental 12,535,500 38,324,315 11,991,234 (26,333,081)
Developer participation - 1,072,681 171,134 (901,547)
Transfers in 6,522,800 35,453,956 8,976,267 (26,477,689)
Amounts available for
appropriations 15,393,515 71,186,167 17,473,850 (53,712,317)
Charges to Appropriation (Outflows)
Planning and development 1,505,000 2,719,380 1,086,169 1,633,211
Capital outlay 17,553,300 68,919,366 17,764,845 51,154,521
Total charges to
appropriations 19,058,300 71,638,746 18,851,014 52,787,732
Budgetary Fund Balance, June 30 (3,664,785)$ (452,579)$ (1,377,164)$ (924,585)$
Budget Amounts
110
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Infrastructure
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 19,408$ 19,408$ 19,408$ -$
Resources (Inflows)
Use of money and property 200 200 (9) (209)
Amounts available for
appropriations 19,608 19,608 19,399 (209)
Charges to Appropriation (Outflows)
Transfers out - 22,618 - 22,618
Budgetary Fund Balance, June 30 19,608$ (3,010)$ 19,399$ 22,409$
Budget Amounts
111
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Civic Center
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 301,271$ 301,271$ 301,271$ -$
Resources (Inflows)
Use of money and property - 2,000 2,828 828
Developer participation 110,000 110,000 194,521 84,521
Amounts available for
appropriations 411,271 413,271 498,620 85,349
Budgetary Fund Balance, June 30 411,271$ 413,271$ 498,620$ 85,349$
Budget Amounts
112
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Transportation
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,321,502$ 2,321,502$ 2,321,502$ -$
Resources (Inflows)
Use of money and property 30,000 30,000 (5,543) (35,543)
Developer participation 350,000 350,000 693,586 343,586
Amounts available for
appropriations 2,701,502 2,701,502 3,009,545 308,043
Charges to Appropriation (Outflows)
Public works 400,000 400,000 400,001 1
Transfers out 893,000 1,557,670 343,055 1,214,615
Total charges to
appropriations 1,293,000 1,957,670 743,056 1,214,616
Budgetary Fund Balance, June 30 1,408,502$ 743,832$ 2,266,489$ 1,522,659$
Budget Amounts
113
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Parks and Recreation
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 294,027$ 294,027$ 294,027$ -$
Resources (Inflows)
Use of money and property 4,000 4,000 (5,939) (9,939)
Developer participation 300,000 300,000 328,072 28,072
Amounts available for
appropriations 598,027 598,027 616,160 18,133
Charges to Appropriation (Outflows)
Transfers out - 959,713 962,469 (2,756)
Budgetary Fund Balance, June 30 598,027$ (361,686)$ (346,309)$ 15,377$
Budget Amounts
114
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Library Development
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (1,505,187)$ (1,505,187)$ (1,505,187)$ -$
Resources (Inflows)
Developer participation 45,000 45,000 61,531 16,531
Amounts available for
appropriations (1,460,187) (1,460,187) (1,443,656) 16,531
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges 30,000 30,000 15,133 14,867
Budgetary Fund Balance, June 30 (1,490,187)$ (1,490,187)$ (1,458,789)$ 31,398$
Budget Amounts
115
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Community Center
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 192,753$ 192,753$ 192,753$ -$
Resources (Inflows)
Use of money and property 1,500 1,500 752 (748)
Developer participation 15,000 75,000 142,520 67,520
Amounts available for
appropriations 209,253 269,253 336,025 66,772
Charges to Appropriation (Outflows)
Transfers out - 101,639 101,639 -
Budgetary Fund Balance, June 30 209,253$ 167,614$ 234,386$ 66,772$
Budget Amounts
116
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Street Facility
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 39,130$ 39,130$ 39,130$ -$
Resources (Inflows)
Use of money and property - - 62 62
Developer participation 17,000 2,000 4,095 2,095
Amounts available for
appropriations 56,130 41,130 43,287 2,157
Budgetary Fund Balance, June 30 56,130$ 41,130$ 43,287$ 2,157$
Budget Amounts
117
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Park Facility
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,723$ 5,723$ 5,723$ -$
Resources (Inflows)
Use of money and property 100 100 (47) (147)
Developer participation 7,000 400 320 (80)
Amounts available for
appropriations 12,823 6,223 5,996 (227)
Charges to Appropriation (Outflows)
Transfers out - 5,600 - 5,600
Budgetary Fund Balance, June 30 12,823$ 623$ 5,996$ 5,373$
Budget Amounts
118
City of La Quinta, California
Budgetary Comparison Schedule – Capital Projects Fund
Fire Facility
Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 136,036$ 136,036$ 136,036$ -$
Resources (Inflows)
Use of money and property 500 500 867 367
Developer participation 55,000 55,000 60,357 5,357
Amounts available for
appropriations 191,536 191,536 197,260 5,724
Budgetary Fund Balance, June 30 191,536$ 191,536$ 197,260$ 5,724$
Budget Amounts
119
City of La Quinta, California
Budgetary Comparison Schedule – Debt Service Fund
Financing Authority
Year Ended June 30, 2021
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 1,100 1,100 1,100 -
Budgetary Fund Balance, June 30 (100)$ (100)$ -$ 100$
Budget Amounts
120
City of La Quinta, California
Internal Service Funds
Year Ended June 30, 2021
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.
121
City of La Quinta, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Assets
Current
Pooled cash and investments 3,638,607$ 1,835,005$ 3,681,352$ 362,498$ 9,517,462$
Receivables
Accounts - - - 6,096 6,096
Accrued interest 1,457 735 1,474 143 3,809
Prepaid costs - 113,691 - 108,232 221,923
Total current assets 3,640,064 1,949,431 3,682,826 476,969 9,749,290
Noncurrent
Capital assets - net of accumulated
depreciation 1,136,452 346,109 12,107,952 - 13,590,513
Total assets 4,776,516 2,295,540 15,790,778 476,969 23,339,803
Liabilities
Current
Accounts payable 60,265 31,780 2,315 182 94,542
Accrued liabilities - 1,233 - (1) 1,232
Current portion of capital leases 193,508 33,601 - - 227,109
Total current liabilities 253,773 66,614 2,315 181 322,883
Noncurrent
Long-term portion of capital leases 140,538 50,403 - - 190,941
Total liabilities 394,311 117,017 2,315 181 513,824
Net Position
Net investment in capital assets 802,406 262,105 12,107,952 - 13,172,463
Unrestricted 3,579,799 1,916,418 3,680,511 476,788 9,653,516
Total net position 4,382,205$ 2,178,523$ 15,788,463$ 476,788$ 22,825,979$
Governmental Activities - Internal Service Funds
122
City of La Quinta, California
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2021
Park
Equipment Information Equipment and
Replacement Technology Facilities Insurance Totals
Operating Revenues
Sales and service charges 871,500$ 1,716,309$ 200,000$ 927,500$ 3,715,309$
Operating Expenses
Administration and general 27,476 43,631 - 165,416 236,523
Fuel and oil 80,734 - - - 80,734
Maintenance and parts 116,728 - - - 116,728
Contract services - 443,381 51,791 - 495,172
Software and supplies - 470,908 - 699,594 1,170,502
Depreciation expense 313,217 128,667 519,350 - 961,234
Total operating expenses 538,155 1,086,587 571,141 865,010 3,060,893
Operating Income (Loss)333,345 629,722 (371,141) 62,490 654,416
Nonoperating Revenue (Expenses)
Interest revenue 2,716 8,558 (1,762) 4,991 14,503
Miscellaneous revenue - - 10,129 4,000 14,129
Interest expense (26,948) - - - (26,948)
Gain on disposal of capital assets 21,268 25,825 - - 47,093
Total nonoperating revenues (2,964) 34,383 8,367 8,991 48,777
Income (Loss) Before Transfers 330,381 664,105 (362,774) 71,481 703,193
Transfers in - - - - -
Transfers out - - (87,986) - (87,986)
Changes in Net Position 330,381 664,105 (450,760) 71,481 615,207
Net Position
Beginning of Year 4,051,824 1,514,418 16,239,223 405,307 22,210,772
End of Year 4,382,205$ 2,178,523$ 15,788,463$ 476,788$ 22,825,979$
Governmental Activities - Internal Service Funds
123
City of La Quinta, California
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2021
Park
Equipment Information Equipment
Replacement Technology and Facilities Insurance Totals
Operating Activities
Cash received from interfund services provided 871,500$ 1,716,309$ 200,000$ 921,405$ 3,709,214$
Cash paid to suppliers for goods and services (307,840) (1,007,003) (80,994) (588,873) (1,984,710)
Cash paid to employees for services - - - (1) (1)
Net Cash from Operating Activities 563,660 709,306 119,006 332,531 1,724,503
Non-Capital Financing Activities
Cash transfers out - - (87,986) - (87,986)
Net Cash from (used for) Non-Capital
Financing Activities - - (87,986) - (87,986)
Capital and Related Financing Activities
Capital contributions - - 10,130 - 10,130
Acquisition and construction of capital assets (28,161) (120,994) (12,126) - (161,281)
Interest paid on capital debt (26,944) - - - (26,944)
Capital lease (244,200) (33,601) - - (277,801)
Proceeds from sales of capital assets 21,268 25,825 - - 47,093
Net Cash from (used for) Capital and
Related Financing Activities (278,037) (128,770) (1,996) - (408,803)
Investing Activities
Interest received 6,570 9,798 2,554 8,881 27,803
Net Change in Cash and Cash Equivalents 292,193 590,334 31,578 - 341,412 - 1,255,517
Cash and Cash Equivalents, Beginning of Year 3,346,414 1,244,671 3,649,774 21,086 8,261,945
Cash and Cash Equivalents, End of Year 3,638,607$ 1,835,005$ 3,681,352$ 362,498$ 9,517,462$
- - - - - -
Reconciliation of operating income to net cash
from (used for) operating activities
Operating income (loss)333,345$ 629,722$ (371,141)$ 62,490$ 654,416$
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities
Depreciation 313,217 128,667 519,350 - 961,234
Changes in
Prepaid costs - (38,778) - 275,956 237,178
Accounts receivable - - - (6,096) (6,096)
Accounts payable (82,902) (10,166) (29,203) 182 (122,089)
Accrued liabilities - (139) - (1) (140)
Net Cash from Operating Activities 563,660$ 709,306$ 119,006$ 332,531$ 1,724,503$
Governmental Activities - Internal Service Funds
Statistical Section
June 30, 2021
City of La Quinta, California
This page intentionally left blank.
124
City of La Quinta
Statistical Section
Year Ended June 30, 2021
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.125
Revenue Capacity
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property taxes.137
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.147
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.154
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.157
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive
financial reports for the relevant year.
CITY OF LA QUINTA
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
2012 2013 2014 2015 2016
Governmental Activities
Net investment in capital assets 534,388,479$ 529,681,342$ 527,614,666$ 523,495,389$ 516,499,682$
Restricted 26,585,382 49,598,397 53,669,248 62,472,221 61,148,731
Unrestricted 89,832,811 83,399,745 83,907,046 74,362,189 84,439,071
Total Governmental Activities Net Position 650,806,672 662,679,484 665,190,960 660,329,799 662,087,484
Business-Type Activities
Net investment in capital assets 42,105,683 41,741,443 41,354,565 44,118,111 43,898,784
Restricted - - - - -
Unrestricted (4,745,892) (4,750,604) (4,674,666) (4,892,647) (5,086,906)
Total Business-Type Activities Net Position 37,359,791 36,990,839 36,679,899 39,225,464 38,811,878
Primary Government
Net investment in capital assets 576,494,162 571,422,785 568,969,231 567,613,500 560,398,466
Restricted 26,585,382 49,598,397 53,669,248 62,472,221 61,148,731
Unrestricted 85,086,919 78,649,141 79,232,380 69,469,542 79,352,165
Total Primary Government Net Position 688,166,463 699,670,323 701,870,859 699,555,263 700,899,362
Fiscal Year
Source:City of La Quinta
125
TABLE 1
2017 2018 2019 2020 2021
Governmental Activities:
517,039,487$ 510,913,594$ 519,221,969$ 509,777,422$ 519,203,177$ Net investment in capital assets
38,824,860 39,204,789 44,815,499 46,001,248 46,711,801 Restricted
118,125,125 130,950,644 138,584,041 142,418,499 162,887,430 Unrestricted
673,989,472 681,069,027 702,621,509 698,197,169 728,802,408 Total Governmental Activities Net Position
Business-Type Activities:
43,836,868 43,585,880 43,375,536 39,712,955 42,717,914 Net investment in capital assets
- - - - - Restricted
(5,140,966) (5,203,212) 240,125 3,145,820 368,750 Unrestricted
38,695,902 38,382,668 43,615,661 42,858,775 43,086,664 Total Business-Type Activities Net Position
Primary Government:
560,876,355 554,499,474 562,597,505 549,490,377 561,921,091 Net investment in capital assets
38,824,860 39,204,789 44,815,499 46,001,248 46,711,801 Restricted
112,984,159 125,747,432 138,824,166 145,564,319 163,256,180 Unrestricted
712,685,374 719,451,695 746,237,170 741,055,944 771,889,072 Total Primary Government Net Position
126
CITY OF LA QUINTA
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 6,183,712$ 4,511,023$ 4,830,239$ 5,166,732$ 5,645,004$
Public safety 20,815,454 21,047,691 21,169,423 21,636,149 22,067,603
Planning and development 6,378,352 2,274,541 3,098,015 2,212,013 3,359,732
Community services 5,093,402 4,986,104 4,130,085 5,992,362 6,214,098
Public works 13,288,521 11,803,133 12,610,994 18,116,732 12,157,245
Contribution to other agencies - - - - -
Interest on long-term debt 3,021,496 447,048 405,977 340,716 343,129
Total governmental activities expenditures 54,780,937 45,069,540 46,244,733 53,464,704 49,786,811
Business-type activities:
Golf course 4,085,282 4,208,855 4,971,977 5,053,360 4,373,586
Total business-type activities expenditures 4,085,282 4,208,855 4,971,977 5,053,360 4,373,586
58,866,219 49,278,395 51,216,710 58,518,064 54,160,397
Program Revenues
Governmental activities:
Charges for services:
General government 86,869 38,812 71,042 121,140 192,538
Public safety 1,020,822 927,604 1,412,819 1,655,421 1,378,704
Planning and development 68,470 112,695 595,980 489,589 467,053
Community services 247,397 245,392 1,224,719 307,869 386,824
Public works 1,080,744 1,209,438 1,195,703 1,197,069 1,134,630
Operating grants and contributions 11,289,673 28,068,940 14,587,153 16,829,107 12,213,338
Capital grants and contributions 9,990,793 3,981,286 3,536,444 1,076,145
Total governmental activities program revenues 23,784,768 30,602,881 23,068,702 24,136,639 16,849,232
Business-type activities:
Charges for services:
Golf course 3,871,898 3,736,879 3,481,424 3,561,857 3,621,495
Capital grants and contributions - - - 2,872,122 -
Total business-type activities program revenues 3,871,898 3,736,879 3,481,424 6,433,979 3,621,495
27,656,666 34,339,760 26,550,126 30,570,618 20,470,727
Net Revenues (Expenditures):
Governmental activities (30,996,169) (14,466,659) (23,176,031) (29,328,065) (32,937,579)
Business-type activities (213,384) (471,976) (1,490,553) 1,380,619 (752,091)
(31,209,553) (14,938,635) (24,666,584) (27,947,446) (33,689,670)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property taxes 21,370,476 7,043,604 9,193,753 8,776,491 8,798,296
Tax increment - - - - -
Transient occupancy taxes 5,446,883 5,980,684 6,307,737 6,637,183 7,835,745
Sales tax 7,713,741 7,833,545 8,786,819 8,873,008 9,107,046
Franchise taxes 1,687,440 1,669,476 1,688,263 1,861,453 1,799,938
Business license taxes 293,592 292,966 307,654 306,087 334,465
Other taxes 428,963 518,778 580,834 530,336 516,964
Motor vehicle in lieu, unrestricted 3,173,826 3,157,330 3,291,042 3,486,367 3,651,549
Investment income 1,925,255 1,605,718 2,190,357 1,981,343 2,390,468
Gain (loss) on sale of capital assets - 28,551 - - -
Miscellaneous 268,644 192,509 243,498 296,346 376,193
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) (115,400)
Total governmental activities 200,963,535 26,133,177 25,687,507 32,500,875 34,695,264
Business-type activities:
Investment income 1,075 2,225 1,567 2,043 4,282
Miscellaneous - 100,799 678,046 915,164 218,823
Transfers - - 500,000 247,739 115,400
Total business-type activities 1,075 103,024 1,179,613 1,164,946 338,505
Total Primary Government 200,964,610 26,236,201 26,867,120 33,665,821 35,033,769
Changes in Net Position
Governmental activities 169,967,366 11,666,518 2,511,476 3,172,810 1,757,685
Business-type activities (212,309) (368,952) (310,940) 2,545,565 (413,586)
Total Primary Government 169,755,057 11,297,566 2,200,536 5,718,375 1,344,099
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
127
TABLE 2
2017 2018 2019 2020 2021
Expenditures:
Governmental activities:
5,565,727$ 8,869,174$ 9,085,863$ 9,877,251$ 8,106,209$ General government
23,378,824 22,508,088 23,164,976 24,009,725 24,429,310 Public safety
2,882,321 4,352,134 5,913,321 5,845,836 6,508,522 Planning and development
6,584,268 9,231,268 6,202,084 11,362,950 6,958,234 Community services
10,927,160 15,580,975 4,430,519 32,248,031 11,438,197 Public works
- Contribution to other agencies
309,463 1,468,971 210,941 98,049 42,081 Interest on long-term debt
49,647,763 62,010,610 49,007,703 83,441,842 57,482,553 Total governmental activities expenditures
Business-type activities:
3,965,644 4,318,463 4,558,922 4,148,190 4,169,286 Golf course
3,965,644 4,318,463 4,558,922 4,148,190 4,169,286 Total business-type activities expenditures
53,613,407 66,329,073 53,566,625 87,590,032 61,651,839 Total Primary Government Expenditures
Program Revenues:
Governmental activities:
Charges for services:
504,127 883,153 516,115 615,348 1,541,535 General government
341,368 367,848 376,249 367,277 770,760 Public safety
564,327 724,499 636,683 799,040 710,529 Planning and development
453,098 442,656 479,542 366,896 178,554 Community services
741,703 1,054,902 1,119,816 1,436,362 1,503,633 Public works
6,187,803 4,259,916 5,623,509 7,817,482 4,413,523 Operating grants and contributions
3,316,153 4,455,060 5,462,395 9,613,752 15,770,048 Capital grants and contributions
12,108,579 12,188,034 14,214,310 21,016,157 24,888,582 Total governmental activities program revenues
Business-type activities:
Charges for services:
3,446,340 3,567,718 3,773,396 2,746,748 3,509,096 Golf course
- Capital grants and contributions
3,446,340 3,567,718 3,773,396 2,746,748 3,509,096 Total business-type activities program revenues
15,554,919 15,755,752 17,987,706 23,762,905 28,397,678 Total Primary Government Program Revenues
Net Revenues (Expenditures):
(37,539,184) (49,822,576) (34,793,394) (62,425,685) (32,593,971) Governmental activities
(519,304) (750,745) (785,526) (1,401,442) (660,190) Business-type activities
(38,058,488) (50,573,321) (35,578,920) (63,827,127) (33,254,161) Total Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
15,521,335 15,887,015 16,423,843 16,710,544 16,893,629 Property taxes
- - - - - Tax increment
9,433,970 10,752,788 11,230,915 8,079,394 11,847,139 Transient occupancy taxes
10,060,305 18,956,985 20,905,243 19,136,015 23,323,549 Sales tax
1,815,491 1,977,179 2,032,848 1,996,593 2,055,505 Franchise taxes
365,451 345,187 418,707 378,744 383,551 Business license taxes
585,333 718,472 713,237 662,545 1,568,997 Other taxes
3,813,213 3,941,348 4,086,536 4,290,417 4,376,455 Motor vehicle in lieu, unrestricted
442,710 803,654 5,150,613 5,110,358 1,427,664 Investment income
- - - - - Gain (loss) on sale of capital assets
460,614 649,566 394,347 1,404,143 1,457,788 Miscellaneous
(5,553,561) - - Special Item (interfund loan payoff)
7,344,050 3,624,121 993,148 867,792 739,933 Extraordinary gain/loss on dissolution of RDA
(401,300) (434,000) (450,000) (635,200) (875,000) Transfers
49,441,172 57,222,315 56,345,876 58,001,345 63,199,210 Total governmental activities
Business-type activities:
2,028 3,511 14,958 9,356 13,081 Investment income
- - 5,553,561 - - Miscellaneous
401,300 434,000 450,000 635,200 875,000 Transfers
403,328 437,511 6,018,519 644,556 888,081 Total business-type activities
49,844,500 57,659,826 62,364,395 58,645,901 64,087,291 Total Primary Government
Changes in Net Position
11,901,988 7,399,739 21,552,482 (4,424,340) 30,605,239 Governmental activities
(115,976) (313,234) 5,232,993 (756,886) 227,891 Business-type activities
11,786,012 7,086,505 26,785,475 (5,181,226) 30,833,130 Total Primary Government
128
CITY OF LA QUINTA
Changes in Net Position - Governmental Activities
Last Ten Fiscal Years
(Accrual basis of accounting)
2012 2013 2014 2015 2016
Expenses
General government 6,183,712$ 4,511,023$ 4,830,239$ 5,166,732$ 5,645,004$
Public safety 20,815,454 21,047,691 21,169,423 21,636,149 22,067,603
Planning and development 6,378,352 2,274,541 3,098,015 2,212,013 3,359,732
Community services 5,093,402 4,986,104 4,130,085 5,992,362 6,214,098
Public works 13,288,521 11,803,133 12,610,994 18,116,732 12,157,245
Contribution to other agencies - - - - -
Interest on long-term debt 3,021,496 447,048 405,977 340,716 343,129
Total Governmental Activities Expenditures 54,780,937 45,069,540 46,244,733 53,464,704 49,786,811
Program Revenues
Charges for services:
General government 86,869 38,812 71,042 121,140 192,538
Public safety 1,020,822 927,604 1,412,819 1,655,421 1,378,704
Planning and development 68,470 112,695 595,980 489,589 467,053
Community services 247,397 245,392 1,224,719 307,869 386,824
Public works 1,080,744 1,209,438 1,195,703 1,197,069 1,134,630
Operating grants and contributions 11,289,673 28,068,940 14,587,153 16,829,107 12,213,338
Capital grants and contributions 9,990,793 4,115,238 3,981,286 3,536,444 1,076,145
23,784,768 34,718,119 23,068,702 24,136,639 16,849,232
Net Revenues (Expenditures)(30,996,169) (10,351,421) (23,176,031) (29,328,065) (32,937,579)
General Revenues and Other Changes in Net Position
Taxes:
Property taxes 21,370,476 7,043,604 9,193,753 8,776,491 8,798,296
Tax increment - - - - -
Transient occupancy taxes 5,446,883 5,980,684 6,307,737 6,637,183 7,835,745
Sales tax 7,713,741 7,833,545 8,786,819 8,873,008 9,107,046
Franchise tax 1,687,440 1,669,476 1,688,263 1,861,453 1,799,938
Business license taxes 293,592 292,966 307,654 306,087 334,465
Other tax 428,963 518,778 580,834 530,336 516,964
Motor vehicle in lieu, unrestricted 3,173,826 3,157,330 3,291,042 3,486,367 3,651,549
Investment income 1,925,255 1,605,718 2,190,357 1,981,343 2,390,468
Gain (loss) on sale of capital assets - 28,551 - - 376,193
Miscellaneous 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) (115,400)
Total Governmental Activities 200,963,535 26,133,177 25,687,507 32,500,875 34,695,264
Changes in Net Position 169,967,366 15,781,756 2,511,476 3,172,810 1,757,685
Fiscal Year
Total Governmental Activities Program Revenues
Source:City of La Quinta
129
TABLE 3
2017 2018 2019 2020 2021
Expenditures:
5,565,727$ 8,869,174$ 9,085,863$ 9,877,251$ 8,106,209$ General government
23,378,824 22,508,088 23,164,976 24,009,725 24,429,310 Public safety
2,882,321 4,352,134 5,913,321 5,845,836 6,508,522 Planning and development
6,584,268 9,231,268 6,202,084 11,362,950 6,958,234 Community services
10,927,160 15,580,975 4,430,519 32,248,031 11,438,197 Public works
- - - - - Contribution to other agencies
309,463 1,468,971 210,941 98,049 42,081 Interest on long-term debt
49,647,763 62,010,610 49,007,703 83,441,842 57,482,553 Total Governmental Activities Expenditures
Program Revenues:
Charges for services:
504,127 883,153 516,115 615,348 1,541,535 General government
341,368 367,848 376,249 367,277 770,760 Public safety
564,327 724,499 636,683 799,040 710,529 Planning and development
453,098 442,656 479,542 366,896 178,554 Community services
741,703 1,054,902 1,119,816 1,436,362 1,503,633 Public works
6,187,803 4,259,916 5,623,509 7,817,482 4,413,523 Operating grants and contributions
3,316,153 4,455,060 5,462,395 9,613,752 15,770,048 Capital grants and contributions
12,108,579 12,188,034 14,214,310 21,016,157 24,888,582
Total Governmental Activities Program
Revenues
(37,539,184) (49,822,576) (34,793,394) (62,425,685) (32,593,971) Net Revenues (Expenditures)
General Revenues and Other Changes in
Net Position:
Taxes:
15,521,335 15,887,015 16,423,843 16,710,544 16,893,629 Property taxes
- - - - - Tax increment
9,433,970 10,752,788 11,230,915 8,079,394 11,847,139 Transient occupancy taxes
10,060,305 18,956,985 20,905,243 19,136,015 23,323,549 Sales tax
1,815,491 1,977,179 2,032,848 1,996,593 2,055,505 Franchise tax
365,451 345,187 418,707 378,744 383,551 Business license taxes
585,333 718,472 713,237 662,545 1,568,997 Other tax
3,813,213 3,941,348 4,086,536 4,290,417 4,376,455 Motor vehicle in lieu, unrestricted
442,710 803,654 5,150,613 5,110,358 1,427,664 Investment income
460,614 649,566 394,347 1,404,143 1,457,788 Gain (loss) on sale of capital assets
- - - - - Miscellaneous
(5,553,561) - - Special item (interfund loan payoff)
7,344,050 3,624,121 993,148 867,792 739,933 Extraordinary gain/loss on dissolution of RDA
(401,300) (434,000) (450,000) (635,200) (875,000) Transfers
49,441,172 57,222,315 56,345,876 58,001,345 63,199,210 Total Governmental Activities
11,901,988 7,399,739 21,552,482 (4,424,340) 30,605,239 Changes in Net Position
130
CITY OF LA QUINTA
Changes in Net Position - Business-type Activities
Last Ten Fiscal Years
(Accrual basis of accounting)
2012 2013 2014 2015 2016
Expenses
Golf course 4,085,282$ 4,208,855$ 4,971,977$ 5,053,360$ 4,373,586$
Total Business-Type Activities Expenditures 4,085,282 4,208,855 4,971,977 5,053,360 4,373,586
Program revenues
Charges for services:
Golf course 3,871,898 3,736,879 3,481,424 3,561,857 3,621,495
Capital grants and contributions - - - 2,872,122 -
3,871,898 3,736,879 3,481,424 6,433,979 3,621,495
Net Revenues (Expenditures)(213,384) (471,976) (1,490,553) 1,380,619 (752,091)
General Revenues and Other Changes in Net Position
Investment income 1,075 2,225 1,567 2,043 4,282
Gain (loss) on sale of capital assets - - - - -
Miscellaneous - 100,799 678,046 915,164 218,823
Transfers - - 500,000 247,739 115,400
Capital contributions - - - - -
Total Business-Type Activities 1,075 103,024 1,179,613 1,164,946 338,505
Changes in Net Position (212,309) (368,952) (310,940) 2,545,565 (413,586)
Total Business-Type Activities Program Revenues
Fiscal Year
Source:City of La Quinta
131
TABLE 4
2017 2018 2019 2020 2021
Expenditures:
3,965,644$ 4,318,463$ 4,558,922$ 4,148,190$ 4,169,286$ Golf course
3,965,644 4,318,463 4,558,922 4,148,190 4,169,286 Total Business-Type Activities Expenditures
Program revenues:
Charges for services:
3,446,340 3,567,718 3,773,396 2,746,748 3,509,096 Golf course
- - - - - Capital grants and contributions
3,446,340 3,567,718 3,773,396 2,746,748 3,509,096
(519,304) (750,745) (785,526) (1,401,442) (660,190) Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
2,028 3,511 14,958 9,356 13,081 Investment income
- - - - - Gain (loss) on sale of capital assets
- - 5,553,561 - - Miscellaneous
401,300 434,000 450,000 635,200 875,000 Transfers
- - - - - Capital contributions
403,328 437,511 6,018,519 644,556 888,081 Total Business-Type Activities
(115,976) (313,234) 5,232,993 (756,886) 227,891 Changes in Net Position
Total Business-Type Activities Program Revenues
132
CITY OF LA QUINTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2012 2013 2014 2015 2016(1)
General fund
Nonspendable:
Prepaid costs 27,481$ 11,786$ 1,500$ 15,653$ 204,589$
Land held for resale 8,320,000 8,320,000 8,320,000 8,320,000 8,320,000
Advances to other funds 15,417,929 15,509,691 15,163,183 14,943,098 14,974,800
Deposits 118,516 4,830 4,830 33,985 -
Due from Other Governments - 41,378,966 34,976,516 26,715,575 25,105,681
Restricted for:
Debt service 173,426 - - - -
Section 115 Trust (Note 11)
Committed:
Emergency Reserve(2)17,516,295 16,034,995 16,034,995 15,372,600 15,576,000
Natural Disaster Reserve(2)
Economic Disaster Reserve(2)
Post retirement health benefits(3)1,523,401 1,523,401 1,523,401 1,523,401 1,523,400
Capital Replacement Reserve(2)- 2,848,737 1,507,429 1,727,390 2,302,000
Cash Flow Reserve(2)- - 2,836,820 3,843,150 3,894,000
Pension Trust(4)- - - - -
Carryovers - - 356,438 476,400 4,274,046
Other - - - - -
Assigned:
Continuing appropriations 1,041,172 1,013,533 209,000 - -
Public Safety (Note 13b)- - - - -
Sales Tax Reserve (Note 13b)- - - - -
Capital Projects (Note 13b)- - - - -
Unassigned 47,737,861 5,926,651 10,699,641 13,837,312 13,822,012
Total general fund 91,876,081 92,572,590 91,633,753 86,808,564 98,565,571
All other governmental funds
Nonspendable:
Prepaid costs 12,875 10,310 - - 8,422
Notes and loans 2,065,611 2,062,589 - - -
Advances to other funds - - - - -
Deposits 13,600 13,600 - - -
Restricted:
Planning and development projects 10,767,199 3,730,533 5,970,006 13,108,499 18,211,200
Public safety 245,187 258,968 274,274 301,843 189,988
Community services 11,162,057 11,626,441 12,459,516 10,711,704 9,872,124
Public works 145,823 262,754 1,571,163 1,129,697 1,250,827
Capital Projects 4,089,156 1,392,581 1,590,168 3,873,699 3,597,221
Debt service 2,534 2,234 - - -
Assigned:
Continuing appropriations - - - - -
Unassigned (13,248,593) (13,179,196) (12,370,462) (12,703,744) (11,655,344)
Total all other governmental funds 15,255,449 6,180,814 9,494,665 16,421,698 21,474,438
Total Governmental Funds 107,131,530 98,753,404 101,128,418 103,230,262 120,040,009
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
133
TABLE 5
2017 2018 2019 2020 2021
General fund:
Nonspendable:
10,578$ 90,657$ 37,182$ 14,065$ 25,246$ Prepaid costs
8,320,000 8,320,000 5,730,990 5,403,652 5,403,652 Land held for resale
15,022,660 14,954,085 - - - Advances to other funds
- - - - - Deposits
29,154,040 29,611,707 27,915,770 26,069,742 24,070,622 Due from Other Governments
Restricted for:
- - - - - Debt service
6,540,000 10,249,738 11,381,922 Section 115 Trust (Note 11)
Committed:
16,534,000 - - - - Emergency Reserve(2)
7,400,000 10,000,000 10,000,000 10,000,000 Natural Disaster Reserve(2)
8,140,000 11,000,000 6,800,000 11,000,000 Economic Disaster Reserve(2)
1,523,400 - - - - Post retirement health benefits(3)
- 5,000,000 5,000,000 6,540,000 10,000,000 Capital Replacement Reserve(2)
4,134,000 5,000,000 5,000,000 5,000,000 5,000,000 Cash Flow Reserve(2)
- 2,000,000 - - Pension Trust(4)
120,000 2,186,500 745,300 1,778,800 1,209,870 Carryovers
- - - - - Other
Assigned:
- - - - - Continuing appropriations
9,371,699 9,754,327 9,864,841 10,491,654 11,423,931 Public Safety (Note 13b)
- 5,169,970 7,721,975 8,736,219 15,128,658 Sales Tax Reserve (Note 13b)
6,322,570 4,996,815 11,853,162 13,155,144 13,431,089 Capital Projects (Note 13b)
16,949,526 19,199,506 16,228,627 19,094,651 24,241,553 Unassigned
107,462,473 121,823,567 117,637,847 123,333,665 142,316,543 Total general fund
All other governmental funds:
Nonspendable:
10,349 - 386 2,875 1,019 Prepaid costs
- - - - - Notes and loans
- - - - - Advances to other funds
- - - - - Deposits
Restricted:
22,664,093 22,607,600 22,996,435 23,680,641 24,751,443 Planning and development projects
83,506 342,919 1,391,721 1,607,101 931,352 Public safety
10,040,222 10,016,652 13,775,710 14,376,472 12,813,788 Community services
1,546,505 2,033,627 2,667,401 3,208,072 5,196,324 Public works
4,490,534 4,203,991 3,904,492 3,128,962 3,018,894 Capital Projects
- - - Debt service
Assigned:
- - - - - Continuing appropriations
(11,423,008) (11,347,062) (1,852,211) (5,175,243) (3,182,262) Unassigned
27,412,201 27,857,727 42,883,934 40,828,880 43,530,558 Total all other governmental funds
134,874,674 149,681,294 160,521,781 164,162,545 185,847,101 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.
134
CITY OF LA QUINTA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2012 2013 2014 2015 2016
Revenues
Taxes 53,632,023$ 23,506,679$ 27,192,089$ 26,678,471$ 28,057,989$
Assessments 950,292 954,058 951,181 940,221 944,050
Licenses and permits 482,831 566,510 953,540 1,356,978 1,161,820
Intergovernmental 15,875,582 15,464,942 16,506,666 15,702,943 14,960,676
Charges for services 635,111 625,813 1,238,277 1,341,438 1,332,541
Use of money and property 1,914,518 1,582,762 2,175,048 1,950,957 7,475,742
Contributions, fines, and forfeitures 303,773 18,377,253 838,972 1,956,452 28,459
Developer participation 903,144 1,226,825 3,059,254 2,803,681 1,441,075
Miscellaneous 276,327 491,267 575,001 580,843 992,282
Total Revenues 74,973,601 62,796,109 53,490,028 53,311,984 56,394,634
Expenditures
Current:
General government 4,881,922 4,587,888 4,068,827 5,050,425 5,267,024
Public safety 19,669,517 20,168,038 21,189,086 21,664,472 22,125,962
Planning and development 4,314,646 27,514,768 1,748,477 2,097,525 3,294,259
Community services 4,086,686 4,411,536 4,011,432 4,798,123 4,983,038
Public works 6,192,733 5,067,370 4,617,050 5,283,309 4,101,210
Capital projects 13,335,989 8,622,783 7,974,747 11,097,186 7,209,874
Debt service:
Principal retirement 7,066,726 556,871 558,019 594,383 632,615
Interest and fiscal charges 6,701,079 437,678 411,010 348,334 346,137
Payment to bond escrow - - - - -
Payments under pass-through obligations 16,755,441 - - - -
Total Expenditures 83,004,739 71,366,932 44,578,648 50,933,757 47,960,119
(8,031,138) (8,570,823) 8,911,380 2,378,227 8,434,515
Other financing sources (uses):
Issuance of tax allocation bonds - - - - -
Issuance of revenue bonds - - - - -
Proceeds from sale of land - - - - -
Transfers in 12,554,752 29,841,053 4,201,763 12,037,331 6,420,538
Transfers out (12,580,120) (29,841,053) (4,335,679) (12,322,714) (6,614,349)
Other debts issued - - - - -
Capital leases - 71,045 - 9,000 -
Proceeds from sale of capital assets 875,275 121,652 - - -
Total Other Financing Sources (Uses)849,907 192,697 (133,916) (276,383) (193,811)
Extraordinary gain/loss on dissolution of RDA (79,058,255) - (6,402,450) - -
Special item (interfund loan payoff)- - - - -
Net Change in Fund Balances (86,239,486) (8,378,126) 2,375,014 2,101,844 8,240,704
43.7%1.6%2.6%2.2%2.4%
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.
135
TABLE 6
2017 2018 2019 2020 2021
Revenues:
41,832,117$ 44,931,250$ 48,462,493$ 44,881,038$ 53,493,786$ Taxes
953,699 950,541 961,633 957,017 984,435 Assessments
1,118,911 1,394,820 1,555,026 1,913,519 2,020,596 Licenses and permits
4,870,334 12,555,259 14,075,980 17,107,595 25,720,328 Intergovernmental
1,021,336 1,279,864 1,170,825 1,179,592 964,710 Charges for services
4,659,301 2,388,683 4,824,651 5,219,088 2,601,482 Use of money and property
348,345 375,390 375,491 665,193 779,606 Contributions, fines, and forfeitures
1,042,568 1,534,628 2,231,471 1,863,587 1,844,665 Developer participation
289,047 1,196,057 2,425,675 1,371,095 645,780 Miscellaneous
56,135,658 66,606,492 76,083,245 75,157,724 89,055,388 Total Revenues
Expenditures
Current:
5,845,197 7,737,111 10,129,408 7,732,495 8,464,230 General government
23,377,755 22,508,088 23,164,976 24,009,725 24,429,310 Public safety
2,549,779 4,310,589 6,415,466 5,436,281 6,544,477 Planning and development
4,626,401 5,236,083 5,944,200 6,159,707 5,583,420 Community services
4,025,958 4,146,135 4,219,461 5,421,606 5,287,280 Public works
6,859,428 9,015,861 9,096,460 23,150,511 18,219,385 Capital projects
Debt service:
651,625 666,988 650,000 - - Principal retirement
307,600 1,460,371 178,080 28,868 15,133 Interest and fiscal charges
- - - - - Payment to bond escrow
- - - - - Payments under pass-through obligations
48,243,743 55,081,226 59,798,051 71,939,193 68,543,235 Total Expenditures
7,891,915 11,525,266 16,285,194 3,218,531 20,512,153
Other financing sources (uses):
- - - - - Issuance of tax allocation bonds
- - - - - Issuance of revenue bonds
- - - - 1,219,485 Proceeds from sale of land
21,503,514 7,432,340 12,942,596 16,467,409 10,781,267 Transfers in
(21,904,814) (7,775,107) (13,826,890) (16,912,971) (11,568,281) Transfers out
- - - - Other debts issued
- - - - Capital leases
- - - - Proceeds from sale of capital assets
(401,300) (342,767) (884,294) (445,562) 432,471 Total Other Financing Sources (Uses)
7,344,050 3,624,121 993,148 867,792 739,933 Extraordinary gain/loss on dissolution of RDA
- - (5,553,561) - - Special item (interfund loan payoff)
14,834,665 14,806,620 10,840,487 3,640,761 21,684,557 Net Change in Fund Balances
2.5%3.26%2.03%0.06%0.03%
Debt Service as a Percentage of Noncapital
Expenditures (1)
Excess (Deficiency) of Revenues Over (Under)
Expenditures
136
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
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
2021 16,893,629 - 11,847,139 23,323,549 2,055,505 383,551 1,568,997 56,072,370
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
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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
137
CITY OF LA QUINTA TABLE 8
Top 25 Bradley-Burns Sales Tax Producers
Current Year and Ten Years Ago
(in dollars)
Best Buy Electronics/Appliance Stores
BevMo Convenience Stores/Liquor
Circle K Service Stations
Costco Discount Dept. Stores BevMo Convenience Stores/Liquor
Floor & Décor Building Materials
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 Lumpy's Discount Golf Sporting Goods/Bike Stores
Marshalls Family Apparel
McDonald's Quick-Service Restaurants Ralphs Grocery Stores
PGA West Private Leisure/Entertainment Ross Family Apparel
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 Tower Mart Service Stations
Tower Mart Service Stations USA Gas Service Stations
Vintners Shell Station Service Stations
Walmart Supercenter Discount Dept. Stores
67.71%70.10%
Marshalls Family Apparel
Fiscal Year 2020-21
Business CategoryBusiness Name (1)
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
Home Depot Building Materials
New Motor Vehicle Dealers
Discount Dept. Stores
Service Stations
Chevrolet Cadillac of La Quinta
Costco
G & M Oil
Fiscal Year 2011-12
Electronics/Appliance Stores
Arco AM/PM
Bed Bath & Beyond
Best Buy
Service Stations
Home Furnishings
Business Name (1)Business Category
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
$25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Combined Sales Tax Revenue
(in millions)
138
This page left blank intentionally.
139
CITY OF LA QUINTA TABLE 8
Top 25 Measure G Sales Tax Producers
Current Year and Ten Years Ago
(in dollars)
Amazon Fulfillment Services General Merchandise
Amazon MFA General Merchandise
Best Buy Electronics/Appliance Stores
Bestbuy Com Electronics/Appliance Stores
Circle K Service Stations
Costco Discount Dept. Stores
Dept. of Motor Vehicles Allocation Used Automotive Dealers
Desert European Motor Cars New Motor Vehicle Dealers
Floor & Décor Building Materials
Hobby Lobby Specialty Stores
Home Depot Building Materials
In N Out Burger Quick-Service Restaurants
Kohl's Department Stores
La Quinta Chevrolet & Cadillac New Motor Vehicle Dealers
La Quinta Resort & PGA West Hotels-Liquor
Lowe's Building Materials
Marshalls Family Apparel
Mathis Brothers Furniture Home Furnishings
PGA West Private Leisure/Entertainment
TJ Maxx Family Apparel
Tower Mart Service Stations
Vons Grocery Stores
46.66%Percent of Fiscal Year Total Paid by Top 25 Accounts:
Measure G was passed in November 2016 and implemented on
April 1, 2017. Ten-year is data not available.
Walmart Supercenter Discount Dept. Stores
Ross Family Apparel
Target Discount Dept Stores
Fiscal Year 2020-21 Fiscal Year 2011-12
Business Name (1)Business Category Business Name Business Category
Notes:
(1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account.
Source:HdL, Coren & Cone
140
CITY OF LA QUINTA
Taxable Sales by Category (1)
Last Ten Calendar Years
(in thousands)
2011 2012 2013 2014 2015
23,223$ 24,430$ 25,741$ 25,461$ 25,115$
211,249 220,970 223,324 216,871 208,189
25,197 25,854 26,394 25,748 22,845
86,433 94,859 97,662 101,647 106,216
62,879 65,445 68,606 73,087 75,658
58,938 62,668 72,839 84,826 87,440
54,342 56,001 52,093 47,541 40,777
97,477 99,028 100,811 101,721 105,284
132,417 130,421 142,049 150,746 155,173
752,155 779,676 809,519 827,648 826,697
Building materials
Calendar Year
Eating and drinking places
Apparel stores
General merchandise
Food stores
Auto dealers and supplies
Service stations
Other retail stores
All other outlets
Total
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
28%
Food stores
3%
Eating and drinking places
12%
Building materials
8%
Auto dealers and supplies
8%
Service stations
7%
Other retail stores
13%
All other outlets
18%
Taxable Sales
Calendar Year 2011
141
TABLE 9
2016 2017 2018 2019 2020
26,280$ 31,822$ 34,508$ 33,937$ 24,929$
206,808 222,767 232,147 235,969 235,841
25,359 25,964 26,126 26,191 30,610
115,974 117,064 122,255 132,184 100,187 Eating and drinking places
78,299 83,383 86,569 89,036 111,231
83,010 81,264 82,702 85,401 78,189 Auto dealers and supplies
34,566 37,558 42,164 42,998 33,742
107,648 104,834 114,980 111,239 101,620
172,135 180,360 210,360 220,260 222,916
850,079 885,016 951,811 977,215 939,265 Total
Service stations
Other retail stores
All other outlets
Apparel stores
General merchandise
Food stores
Building materials
Apparel stores
3%
General merchandise
25%
Food stores
3%
Eating and drinking
places
11%
Building materials
12%
Auto dealers and
supplies
8%
Service stations
3%
Other retail stores
11%
All other outlets
24%
Taxable Sales
Calendar Year 2020
142
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)
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
2021 12,962,202,378 755,379,455 62,798,676 537,520,834 89,135,215 (47,271,000) 14,359,765,558 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 2012 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 only the 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 Auditor-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; Riverside County Auditor-Controller
$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
$15,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Taxable Assessed Value
(in millions)
143
CITY OF LA QUINTA TABLE 11
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
PA1
2012 (1)2013 (1)2014 (1)2015 (1)2016 (1)2017 (1)2018 2019 2020 2021 2012 (2)2012 (2)
Direct Rates:
City of La Quinta 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 0.0646 0.0646 0.0646 0.0524 0.0019
ERAF Share of La Quinta General Fund 0.0113 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 0.0000 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 0.3059
County of Riverside 0.1957 0.1958 0.1958 0.1958 0.1958 0.1958 0.1958 0.0978 0.0978 0.0978 0.2683 0.2511
ERAF Share of County 0.0980 0.0980 0.0980
County Free Library 0.0252 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 0.0294 0.0286
County Structure Fire Protection 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0633 0.0616
Coachella Valley Unified School District 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.0000 0.0000
Desert Sands Unified School 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.3905 0.1930
Desert Community College District 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0812 0.0401
Riverside County Office of Education 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0442 0.0218
Riverside County Regional Park & Open Space 0.0040 0.0039 0.0039 0.0039 0.0039 0.0040 0.0040 0.0040 0.0040 0.0040 0.0000 0.0000
CV Public Cemetery 0.0032 0.0031 0.0031 0.0031 0.0031 0.0031 0.0031 0.0032 0.0032 0.0032 0.0037 0.0001
CV Mosquito & Vector Control 0.0127 0.0127 0.0127 0.0127 0.0126 0.0126 0.0126 0.0126 0.0127 0.0127 0.0148 0.0141
Desert Recreation District 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0223 0.0059
Coachella Valley Water District 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0295 0.0740
CV Resource Conservation 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0004 0.0000
CVWD Improvement District 1 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0000 0.0005
CVWD Storm Water Unit 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 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
Tax Rate Area 020-005 020-005 020-005 020-005 020-005 020-160 020-160 020-160 020-160 020-160 020-089 020-144
Coachella Valley Unified School District 0.0749 0.0797 0.1492 0.1492 0.1322 0.1660 0.1761 0.1495 0.1488 0.1455 0.0749 0.0933
Desert Sands Unified School 0.1147 0.1116 0.1095 0.1098 0.1092 0.0860 0.0725 0.0742 0.0738 0.0739 0.1147 0.1004
Coachella Valley Water District 0.0800 0.0800 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.1000 0.0800 0.0860
Desert Community College District 0.0200 0.0200 0.0200 0.0233 0.0209 0.0204 0.0403 0.0398 0.0398 0.0395 0.0200 0.0200
Total Overlapping Rate 0.2895 0.2912 0.3787 0.3823 0.3622 0.3724 0.3889 0.3635 0.3624 0.3589 0.2895 0.2996
Total Direct and Overlapping Rate 1.2895 1.2912 1.3787 1.3823 1.3622 1.3724 1.3889 1.3635 1.3625 1.3589 1.2895 1.2996
Redevelopment Project Area
Overlapping Rates (4) :
City Non-Project Area PA2
Notes:
(1)Direct rate from Tax Rate Area (TRA) 020-160 and overlapping rates provided by HdL, Coren & Cone; data source Riverside County Assessor 2011/12-2020/21
Annual Tax Increment (Rate) Tables.
(2)Direct rate taken from an analysis of the TRA in the project area and does 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
144
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
1 167,964,353$ 1.17%- 0.00%
2 50,248,920 0.35% 5 42,548,545$ 0.41%
3 45,760,953 0.32%- 0.00%
4 36,473,497 0.25%- 0.00%
5 32,199,420 0.22% 9 29,352,870 0.28%
6 31,315,597 0.22%- 0.00%
7 30,389,563 0.21% 4 43,291,518 0.42%
47647 Caleo Bay Dr LLC 8 27,473,475 0.19%- 0.00%
9 27,380,407 0.19%- 0.00%
Hanes Villaggio 10 27,308,637 0.19%- 0.00%
- - 1 140,972,125 1.36%
T D Desert Development - - 2 97,885,896 0.94%
MSR Resort Golf Course - 3 55,063,175 0.53%
Coral Option I - - 6 42,113,733 0.41%
WRM La Quinta - - 7 37,973,210 0.37%
Griffin Ranch - 8 35,404,218 0.34%
TD Desert Development LP - 10 25,918,559 0.25%
Total 476,514,822$ 3.32%550,523,849 5.30%
Fiscal Year 2011-12
CM Wave Dev
Hawthorn IL PropCo
Fiscal Year 2020-21
Bre Iconic LQR Owner LLC
Inland American La Quinta Pavilion
Town and Country Partners
Aventine Dev
KSL Desert Resort
Taxpayer
East of Madison
Walmart Real Estate Business Trust
(1) Taxable valuations include secured and unsecured
Source:
HdL, Coren & Cone; Riverside County Assessor 2011/12 and 2020/21 Combined Tax Rolls and the SBE Non-Unitary Tax Roll (Preliminary)
Bre Iconic LQR Owner
LLC
Inland American La
Quinta Pavilion
Hawthorn IL PropCo
Town and Country
Partners
Walmart Real Estate
Business Trust
CM Wave Dev
East of Madison
47647 Caleo Bay Dr
LLC
Aventine Dev
Principal Property Tax Payers
(FY 2020-21)
145
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
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(4)7,058,939 6,777,777 96.02%156,792 6,934,570 98.24%
2021 7,139,091 6,891,637 96.53%106,190 6,997,827 98.02%
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.
(4)The statement of original charge that was posted on the the Auditor-Conroller (ACO) website had not been updated
at time of publishing the 19/20 CAFR. The number reported in the 'taxes levied' column has now been adjusted to
accurately reflect the ACO number, which subsequently changed the percent collected as well.
Source:County of Riverside Auditor Controller's Office
$0
$5
$10
$15
$20
$25
$30
$35
$40
2012 2013 2014 2015 2016 2017 2018 2019 2020(4) 2021
Property Tax Collections
(in millions)
146
CITY OF LA QUINTA
Ratios of Outstanding Debt by Type (1)
Last Ten Fiscal Years
(in dollars)
2012 2013 2014 2015 2016
-$ -$ -$ -$ -$
40,090 71,045 129,063 103,869 155,395
- 702,105 686,345 668,933 649,698
- 1,441,096 1,405,755 1,367,344 1,325,596
Notes Payable- Eisenhower Drive Property - - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
3,895,000 3,425,000 2,930,000 2,405,000 1,850,000
- - - - -
Total Governmental 3,935,090 5,639,246 5,151,163 4,545,146 3,980,689
Capital Leases 169,084 43,736 - - -
Total Business-Type Activities 169,084 43,736 - - -
Total Primary Government 4,104,174 5,682,982 5,151,163 4,545,146 3,980,689
Population - State Department of Finance January 1 38,075 38,401 39,032 39,694 39,977
Number of Households 23,528 23,612 23,871 24,150 24,432
Median Household Income 104,045 111,077 109,365 97,526 99,157
Percentage of Personal Income 0.17%0.22%0.20%0.19%0.16%
Debt Per Capita 108 148 132 115 100
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
Fiscal Year Ended
Governmental Activities:
Due to Coachella Valley Unified School District
Capital leases
City Hall Lease Revenue Bonds
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
147
TABLE 14
2017 2018 2019 2020 2021
-$ -$ -$ -$ -$
530,163 667,035 757,971 761,790 459,275
628,448 - - - -
1,280,221 - - - -
2,250,000 1,125,000 - - - Notes Payable- Eisenhower Drive Property
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
1,265,000 650,000 - - -
- - - - -
5,953,832 2,442,035 757,971 761,790 459,275 Total Governmental
- - - - - Capital Leases
- - - - - Total Business-Type Activities
5,953,832 2,442,035 757,971 761,790 459,275 Total Primary Government
40,677 41,204 40,389 40,660 41,247 Population - State Department of Finance January 1
24,544 24,643 24,764 24,957 25,177 Number of Households
104,749 107,447 117,802 120,097 121,816 Median Household Income
0.23%0.09%0.03%0.00%0.01% Percentage of Personal Income
146 59 19 - 11 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
-
20
40
60
80
100
120
140
160
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
108
148
132
115
100
146
59
19
-
11
Debt Per Capita
148
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
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%-
2021 - - - - 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.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0.04%0.03%0.03%0.02%0.02%0.01%0.01%0.00%0.00% 0.00%
General Bonded Debt as a Percent of Assessed Value
149
CITY OF LA QUINTA TABLE 16
Direct and Overlapping Debt
June 30, 2020
(in dollars)
Total Assessed Valuation (1)14,407,036,558$
Overlapping Debt (3)
16.31%392,435,000$ 64,025,770$
50.36%235,623,166 118,662,183
19.96%410,450,000 81,934,029
88.91%695,000 617,938
86.46%945,000 817,000
266,056,920
4.60%717,525,698 33,006,182
4.60%881,575,000 40,552,450
50.36%34,505,000 17,377,063
19.96%24,960,000 4,982,515
Total Overlapping General Fund Debt 95,918,210
Overlapping Tax Increment Debt
Successor Agencies 62.15%509,578,028 316,727,989
Total Overlapping Tax Increment Debt
Total Gross Overlapping Debt 678,703,119
Less: Riverside County Supported Obligations -
Total Net Overlapping Debt 678,703,119
459,275$ 459,275
459,275
679,162,394$
Estimated Share of
Overlapping Debt
Outstanding Debt
6/30/21
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
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
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.
150
CITY OF LA QUINTA
Legal Debt Margin Information
Last Ten Fiscal Years
(in dollars)
2012 2013 2014 2015 2016
Assessed valuation (1)10,331,431,958$ 10,274,998,112$ 10,726,752,603$ 11,369,346,292$ 11,930,906,878$
Conversion Percentage 25%25%25%25%25%
Adjusted assessed valuation(2)2,582,857,990 2,568,749,528 2,681,688,151 2,842,336,573 2,982,726,720
Debt limit percentage (2)15%15%15%15%15%
Debt limit 387,428,698 385,312,429 402,253,223 426,350,486 447,409,008
- - - - -
Legal debt margin 387,428,698$ 385,312,429$ 402,253,223$ 426,350,486$ 447,409,008$
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.
151
TABLE 17
2017 2018 2019 2020 2021
12,457,435,999$ 12,867,519,997$ 13,351,737,881$ 13,980,319,465$ 14,359,765,558$ Assessed valuation (1)
25%25%25%25%25%
3,114,359,000 3,216,879,999 3,337,934,470 3,495,079,866 3,589,941,390
15%15%15%15%15%Debt limit percentage (2)
467,153,850 482,532,000 500,690,171 524,261,980 538,491,208 Debt limit
Total net debt applicable to
limit
- - - - - General obligation bonds (3)
467,153,850$ 482,532,000$ 500,690,171$ 524,261,980$ 538,491,208$ 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
152
CITY OF LA QUINTA TABLE 18
Pledged-Revenue Coverage (1)
Last Ten Fiscal Years
(in dollars)
Principal Interest
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 - - - - - -
2021 - - - - - -
.
Debt ServiceLess Other
Debt
Payments
Net Lease
Revenue
Fiscal Year
Ended June
30,
Coverage
Ratio (3)
Local Agency Revenue Bonds (City Hall Project)
Lease
Revenue (2)
Notes:
(1)Details regarding the city's outstanding debt can be found in the notes to the financial statements. The City of
La Quinta has no general bonded indebtedness.
(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) .
153
CITY OF LA QUINTA TABLE 19
Demographic and Economic Statistics
Last Ten Calendar Years
Sources 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
(3)35.16 35.16 35.16 35.71 35.71 35.71 35.71 35.71 35.71 35.71
(1)(3)38,199 38,261 38,689 39,240 39,769 40,065 40,217 40,389 40,660 41,247
(4)$104,045 $111,077 $109,365 $97,526 $99,157 $104,749 $107,447 $117,802 $120,097 $121,816
(1)23,585 23,612 23,871 24,150 24,432 24,544 24,643 24,764 24,957 25,177
(1)2.56 2.58 2.59 2.60 2.62 2.64 2.63 2.68 2.60 2.60
(3)$40,722 $43,053 $42,226 $37,510 $37,846 $39,288 $39,999 $42,931 $46,248 $47,986
(2)16,350 16,658 16,983 17,483 18,033 18,617 18,917 19,142 19,267 19,083
(2)15,042 15,517 16,000 16,675 17,175 17,533 18,000 18,308 17,800 17,483
(2)8.00% 6.85% 5.79% 4.62% 4.76% 5.82% 4.85% 4.36% 7.61% 8.44%
(3)42.8 43.6 44.8 45.1 45.3 45.7 46 46.4 47.1 47.9Median age
Calendar Year
Mean Household Income (in dollars)
Number of Dwelling Units
Persons per Household
Labor Force
Per Capita Income
Employment
City Land (Sq Miles)
Population
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 1,2021. 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 at end of fiscal year due to the Coronavirus pandemic.
(3) HdL, Coren & Cone
(4) Mean Household Income from US Census Bureau report Table S1901. Previously, calculated using "Persons per Household" mulitplied by "Per Capita Income". Starting in
2017, data is from the US Census Bureau American Fact Finder.
23,585
23,612
23,871
24,150
24,432
24,544
24,643
24,764
24,957
25,177
17,000
19,500
22,000
24,500
27,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Number of Dwelling Units
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Unemployment Rate
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mean Household Income
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Per Capita Income and Unemployment
Per Capita Income Unemployment Rate
154
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 2,564 13.44%2 968 7.28%
Hotel & Golf Resort 2 1,412 7.40%1 1,211 9.11%
Retailer 3 300 1.57%3 367 2.76%
Retailer 4 297 1.56%4 234 1.76%
Retailer 5 230 1.21%5 165 1.24%
Retailer 6 180 0.94%- 0.00%
Utility Company 7 133 0.70%- 0.00%
Retailer 8 110 0.58%7 145 1.09%
Vons Grocery Store 9 101 0.53%0.00%
Grocery Store 10 90 0.47%- 0.00%
Fast Food 11 84 0.44%- 0.00%
Golf Resort 12 69 0.36%6 152 1.14%
Hideaway Golf Resort 8 122 0.92%
Tradition Golf Club Golf Resort 9 101 0.76%
City of La Quinta Government 10 89 0.67%
Total employment listed 5,570 29.19%3,554 26.72%
Total City Employment - July 1 19,083 13,300
Rancho La Quinta
Home Depot
Costco
Target
In N Out
Stater Bros
Imperial Irrigation District
Lowe's Home Improvement
Desert Sands Unified School District
Wal-Mart Super Center
La Quinta Resort & Club/ PGA West (1)
Fiscal Year 2011-12
Employer
Fiscal Year 2020-21
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
155
CITY OF LA QUINTA TABLE 21
Full-time City Employees
by Function
Last Ten Fiscal Years
2012 2013 2014 (1)2015 2016 (2)2017 2018 2019 2020 2021(3)
12.00 11.00 8.00 7.00 4.00 4.00 5.00 7.00 8.00 8.00
5.00 5.00 4.00 4.00 3.00 3.00 5.00 5.00 4.00 4.00
8.00 8.00 7.00 8.00 7.00 7.00 8.00 8.00 8.00 9.00
10.75 10.75 12.00 11.65 - - - - - -
21.00 21.00 - - - - - - - -
8.00 9.00 - - - - - - - -
- - 19.00 20.00 - - - - - -
24.25 23.25 20.00 21.35 - - - - - 27.00
- - - - 18.00 18.00 18.00 18.00 23.00 19.00
- - - - 27.00 27.00 29.00 32.00 33.00 18.00
- - - - 19.00 19.00 19.00 19.00 19.00 -
Total 89.00 88.00 70.00 72.00 78.00 78.00 84.00 89.00 95.00 85.00
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
Fiscal Year
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.
(3) During the FY 2020-21 the City created the Public Works Division, consisting of the Facilities Division as well as Public Works, Engineering, and Capital Improvement (which were
moved out of Design & Development). In addition, there were impacts due to the novel Coronavirus pandemic that led to a reduction in workforce.
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
2012 2013 2014 (1) 2015 2016 (2) 2017 2018 2019 2020 2021(3)
89.00 88.00
70.00
72.00
78.00 78.00
84.00
89.00
95.00
85.00
Total Full-Time City Employees
156
CITY OF LA QUINTA TABLE 22
Operating Indicators
by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020(3)2021(3)
Finance:
Number of Animal Licenses Processed (1)1,674 1,505 1,602 1,374 0 - - - - -
Number of Accounts Payable Checks Processed 3,766 3,576 3,696 3,833 4,153 3,835 3,621 3,879 3,855 2,998
Number of investment purchases 27 30 22 21 22 20 61 56 49 32
Par value of investments 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$ 187,171,960$
Number of cleared checks 5,103 3,899 3,922 4,004 4,167 3,932 3,813 3,875 3,962 2,977
Number of bank wires, drafts, and EFTs(4)63 58 58 54 41 44 64 68 57 412
City Clerk:
Contracts Processed 319 346 289 238 282 199 243 266 297 217
Documents Notarized 254 301 334 203 157 99 128 74 90 184
Documents Recorded with County 170 125 183 106 112 56 67 45 39 43
Subpoenas and Claims Processed 22 15 21 37 10 8 12 18 15 15
Records Requests Fulfilled and Recorded 518 558 601 580 518 743 572 602 633 847
Documents Scanned to Electronic Archives (1)30,437 28,798 34,671 164,847 233,182 214,384 593,991 970,894 753,291 190,113
Public Works:
Encroachment permits issued 65 124 109 127 54 123 121 140 121 138
Request for services (1)534 740 1322 1,261 3,440 3,207 2,652 2,194 1,938 2,041
Community Development:
Number of Active Business Licenses (1)3,310 3,520 3,998 4,452 3,368 3,681 3,707 3,806 3,592 3,267
Permits:
Single family Detached 39 83 147 176 108 92 142 122 218 157
Single family Attached 11 - 0 4.00 7.00 7 6 14 1 0
Residential Pool 127 162 204 255 217 170 211 243 237 337
Wall/Fence 149 167 220 328 257 209 268 223 312 244
Other 916 1,042 1,158 1,316 1,230 1,258 1,571 1,655 1,401 1,619
Garage Sale Permits (1)1,430 1,404 1,255 1,290 1,109 1,024 928 959 604 351
Total Permits 2,672 2,858 2,984 3,369 2,928 2,760 3,126 3,216 2,773 2,708
Code Compliance (1):
Animal Control Incidents Handled (1)4,246 3,206 1,645 1,085 0 - - 52 42 30
Vehicle abatements 139 99 88 85 255 212 224 184 149 79
Weed abatements 106 1,404 43 45 57 114 128 80 65 53
Nuisance abatements/Property Maintenance 2,433 1,668 730 557 1,037 1,180 1,122 921 821 403
All Other (2)- - - - 1,432 806 888 1,159 1,591 1,511
Community Services:
Library activities:
Number of Visits 109,000 63,955 71,874 73,924 182,913 190,747 152,725 132,947 84,042 25,950
Books checked out 275,838 220,690 329,154 263,047 234,340 254,323 250,636 241,450 122,084 63,198
Cards Issued 4,477 2,966 2,035 2,418 2,179 2,248 2,276 2,251 919 886
Number of School Children Visiting 962 737 1,539 1,562 2,947 4,680 4,528 3,303 3,708 10,221
Volunteer Hours 2,720 2,226 1,340 1,917 2,169 2,248 2,314 2,138 1,173 0
Senior Center/Wellness Center (1) :
Number of visits 16,642 9,350 11,500 23,871 62,820 74,141 87,294 82,477 41,934 4,725
Volunteer Hours 2,690 2,233 2,745 1,279 1,585 1,420 1,333 1,148 506 0
Recreation activities:
Participants:
Leisure Classes 2,016 1,475 1,177 1,322 2,241 2,278 2,168 2,039 864 269
Special events 36,305 5,970 5,927 6,460 8,185 7,783 10,449 12,650 4,950 390
Adult Sports 5,647 3,865 5,878 5,487 7,192 6,695 6,136 5,932 3,644 0
Golf course:
Golf rounds played 46,949 46,352 43,610 41,904 45,104 43,085 42,590 44,949 33,407 39,073
Average Green fee 70.40$ 67.44$ 66.83$ 69.65$ 66.87$ 66.80$ 71.88$ 72.02$ 71.23$ 79.63$
Planning and Development:
Number of residential units approved 285 228 494 208 40 120 0 114 92 212
Commercial square footage approved 61,662 0 113,149 79,092.00 13,000 391,914 7,599 102,552 3,162 152,133
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. For 2021, 'School Children Visiting' the library includes virtual storytime attendance.
(4)Previously reported only wires, has been updated to include all forms of electronic payment types.
157
CITY OF LA QUINTA TABLE 23
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Works:
128 128 128 128 128 128 128 128 129 129
22 22 22 34 34 36 36 35.5 79.1 81.1
269 269 277 277 281 372 372 372 372 372
51 52 54 54 54 54 54 54 50 50
2,934 2,984 3,018 3,018 3,018 5,758 5,758 5,408 4,808 4,808
12 12 13 13 13 13 13 13 13 13
Parks and Recreation:
Parks(3)13 13 13 13 13 13 13 13 14 14
218 218 218 218 218 218 218 218 - -
40 40 40 40 40 40 40 40 - -
238 238
114 114
17 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
Fiscal Year
Bikepaths (miles) (1)
Streets (miles)
Senior/Wellness Center
Museum
Library
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)
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.
Source:City of La Quinta
158
CITY OF LA QUINTA TABLE 24
Schedule of Insurance in Force
June 30, 2021
Company Name Policy Number Coverage Limits Term Premium
National Union Fire Insurance 15441004 Crime, Forgery, Fraud $1 Million 12/03/20 - 12/03/21 $1,776
Alliant
California Self-Insured All Risk Property Insurance $25 Million 07/01/19 - 07/01/20 $122,912
Joint Powers Pool 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 $173,602
Lloyds/Beazley Furloge Limited Real & Personal Property
Including Contingent Tax Interruption
California Self-Insured Comprehensive General $50 Million 07/01/19 - 07/01/20 $402,044
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 $161,549
Joint Powers Pool per occurrence
Insurance Authority
Source:City of La Quinta
159