2021-2022 ACFR (July 1 - June 30 Annual Comprehensive Financial Report)-N&
C IT Y OF
LA QUINTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
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Prepared by:
Finance Department
City of La Quinta, California
Annual Comprehensive Financial Report
Year Ended June 30, 2022
Prepared By: Finance Department
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City of La Quinta, California
Table of Contents
June 30, 2022
INTRODUCTORY SECTION
Letterof Transmittal................................................................................................................................................i
Listof Principal Officers........................................................................................................................................vii
OrganizationalChart............................................................................................................................................viii
Certificate of Achievement for Excellence in Financial Reporting(GFOA)............................................................
ix
FINANCIAL SECTION
IndependentAuditor's Report...................................................................................................................................1
Management's Discussion and Analysis.....................................................................................................................6
Government Wide Financial Statements
Statementof Net Position...................................................................................................................................
21
Statementof Activities........................................................................................................................................
23
Government Fund Financial Statements
Balance Sheet — Governmental Funds.................................................................................................................
25
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................
27
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds ........................
28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities...........................................................................................
29
Proprietary Fund Financial Statements
Statement of Net Position — Proprietary Funds..................................................................................................
30
Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds .............................
31
Statement of Cash Flows — Proprietary Funds....................................................................................................
32
Fiduciary Fund Financial Statements
Statementof Fiduciary Net Position...................................................................................................................
34
Statement of Changes in Fiduciary Net Position.................................................................................................
35
Notesto Financial Statements................................................................................................................................
33
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General Fund...............................................................................................
77
Budgetary Comparison Schedule — Housing Authority.......................................................................................
79
Schedule of Proportionate Share of the Net Pension Liability — Miscellaneous Plan .........................................
80
Schedule of Pension Plan Contributions —Miscellaneous Plan...........................................................................
81
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios........................................................
82
Schedule of OPEB Contributions.........................................................................................................................
83
Note to Required Supplementary Information...................................................................................................
84
City of La Quinta, California
Table of Contents
June 30, 2022
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet — Nonmajor Governmental Funds............................................................................. 89
Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental
Funds................................................................................................................................................................... 95
Budgetary Comparison Schedules —Special Revenue Funds
StateGas Tax..................................................................................................................................................... 101
Libraryand Museum.......................................................................................................................................... 102
FederalAssistance............................................................................................................................................. 103
SLESA................................................................................................................................................................. 104
Lightingand Landscaping.................................................................................................................................. 105
Quimby.............................................................................................................................................................. 106
La Quinta Public Safety Officer.......................................................................................................................... 107
Artin Public Places............................................................................................................................................ 108
SouthCoast Air Quality...................................................................................................................................... 109
AB939................................................................................................................................................................ 110
HousingGrants.................................................................................................................................................. 111
LawEnforcement............................................................................................................................................... 112
MeasureA......................................................................................................................................................... 113
EconomicDevelopment.................................................................................................................................... 114
AB1379.............................................................................................................................................................. 115
DisasterRecovery.............................................................................................................................................. 116
Budgetary Comparison Schedules — Capital Projects Funds
CapitalImprovement......................................................................................................................................... 117
Maintenance Facilities DIF Fund....................................................................................................................... 118
Infrastructure.................................................................................................................................................... 119
CivicCenter........................................................................................................................................................ 120
Transportation................................................................................................................................................... 121
Parksand Recreation......................................................................................................................................... 122
LibraryDevelopment......................................................................................................................................... 123
CommunityCenter............................................................................................................................................ 124
StreetFacility..................................................................................................................................................... 125
ParkFacility........................................................................................................................................................ 126
FireFacility......................................................................................................................................................... 127
Budgetary Comparison Schedules — Debt Service Funds
FinancingAuthority........................................................................................................................................... 128
Internal Service Funds
Combining Statement of Net Position............................................................................................................... 130
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................................... 131
Combining Statement of Cash Flows................................................................................................................. 132
Other Information
ProjectStatus.................................................................................................................................................... 135
City of La Quinta, California
Table of Contents
June 30, 2022
STATISTICAL SECTION
Net Position by Component (Table 1)...............................................................................................................
138
Changes in Net Position (Table 2)......................................................................................................................
140
Changes in Net Position — Governmental Activities (Table 3)...........................................................................
142
Changes in Net Position — Business -type Activities (Table 4)............................................................................
144
Fund Balances of Governmental Funds (Table 5)..............................................................................................
146
Changes in Fund Balances of Governmental Funds (Table 6)...........................................................................
148
Tax Revenue by Source (Table 7)......................................................................................................................
150
Top 25 Sales Tax Producers (Table 8)................................................................................................................
151
Top 25 Measure G Sales Tax Producers (Table 9).............................................................................................
153
Taxable Sales by Category (Table 10)................................................................................................................
154
Assessed Value of Taxable Property (Table 11).................................................................................................
156
Direct and Overlapping Property Tax Rates (Table 12).....................................................................................
157
Principal Property Taxpayers (Table 13)............................................................................................................
158
Property Tax Levies and Collections (Table 14).................................................................................................
159
Ratios of Outstanding Debt by Type (Table 15).................................................................................................
160
Ratio of General Bonded Debt Outstanding (Table 16)....................................................................................
162
Direct and Overlapping Debt (Table 17)............................................................................................................
163
Legal Debt Margin Information (Table 18)........................................................................................................
164
Pledged -Revenue Coverage (Table 19).............................................................................................................
166
Demographic and Economic Statistics (Table 20).............................................................................................
167
Principal Employers (Table 21)..........................................................................................................................
168
Full-time City Employees (Table 22)..................................................................................................................
169
Operating Indicators (Table 23).........................................................................................................................
170
Capital Asset Statistics by Function (Table 24)..................................................................................................
171
Schedule of Insurance in Force (Table 25)........................................................................................................
172
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June 29, 2023
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, 2022. 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, 2022. This is the most favorable
conclusion. The independent auditor's report is located at the front of the financial section.
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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 38,000, 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.
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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, as of November
2022, the unadjusted unemployment rate for La Quinta was 3.2%, which was lower than
unadjusted rates for Riverside County's at 4.2% and the statewide average of 4.1%. Current
unemployment rates are greatly impacted by the continuing gains in jobs in the Leisure &
Hospitality sectors, specifically in recreational activities and dining.
The City's dominant industries are tourism, recreation, and retail, with the following being
major employers: Desert Sands Unified School District, La Quinta Resort and Club, Wal-
Mart Super Center, Costco, Home Depot, Lowe's Home Improvement, Imperial Irrigation
District, and Target.
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 2021/22 included a new Panera drive-thru, Art
Major, El Patio restaurant, Jamba Juice, Sub Rosa Apothecary, and WDC Kitchen & Bath
along the Highway 111 corridor; Crumbl Cookies, Slice Italia, and Michelle's Denim and
Swim in the Washington Park Center; Yes Please restaurant in Old Town La Quinta; and
Beautiful Day restaurant in the La Quinta Village shopping center
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 and investments in technology.
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 2021/22, the General Fund's overall fund balance increased by almost $23.5 million when
compared to the ending balance in 2020/21, mainly due to revenue increases surpassing
budget projections in areas such as transient occupancy taxes and sales tax and the Dune
Palms Bridge project advance funding. As of June 30, 2022, 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 2022 the City Council adopted a balanced budget without the use of reserves for
fiscal year 2022/23. The adopted budget had operating revenues exceeding expenses by
$316,826. The 2022/23 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 Coral Mountain, Centre at La Quinta, Desert
Club Apartments, PGA West, Rancho Santana, Stone Creek, Point Happy Homes, Palo Verde,
and Diamante and commercial developments include luxury Montage and lifestyle Pendry
hotels, Pavilion Palms, The Peak and Caleo Bay Park mixed -use development.
Approved housing developments on the horizon include Estate Collection at Coral Mountain,
Estates at Griffin Lake, Jefferson Street Apartments, Andalusia, and Griffin Ranch.
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.
The City recently acquired vacant property on the north side of Highway 111, which is
anticipated to be developed as a mixed -use project with commercial and residential
components furthering the City's goals of fostering mixed -use development, affordable
housing, multi -modal transportation, and the development of the Highway 111 corridor.
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, 2021. This was the twenty-fifth consecutive year
that the City received this prestigious award. In order to be awarded a Certificate of
Achievement, the City must publish an easily readable and efficiently organized ACFR. This
report must satisfy both generally accepted accounting principles and applicable legal
requirements.
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.
appreciation to the Finance Department for their continued effort to provide accurate
financial data and the preparation of this report.
Respectfully Submitted,
CAS.
Jon McMillen, City Manager Claudia Martinez, Finance Director
City of La Quinta
List of Principal Officers
June 30, 2022
CITY COUNCIL
Linda Evans, Mayor
Kathleen Fitzpatrick, Mayor Pro Tern
Robert Radi, Council Member
John Pena, 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, Business Unit/Housing Development Director
Monika Radeva, City Clerk
William H. Ihrke, City Attorney
vii
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CALIFORNIA
C I T Y 0 F LA 0UINTA LA OUINTA. CALIFORNIA
ORGANIZATIONAL CHART
For listing of staffing by department and total number
of employees, see S tati sti cal Section - F ul I Time City
Employees by Function.
viii
Govermnent Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Deporting
Presented to
City of La Quinta
California
For its Amival Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive DirecbriCEO
ix
EideBailly.
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and Members of City Council
City of La Quinta, California
Report on the Audit of the Financial Statements
Opinions
We have audited the 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, 2022, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Adoption of New Accounting Standard
As discussed in Note 1 to the financial statements, the City has adopted the provisions of Government
Accounting Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30, 2022.
Accordingly, a restatement has been made to the governmental activities, business -type activities, and
the Golf Course fund net position and the General fund's fund balance as of July 1, 2021, to restate
beginning net position and fund balance. Our opinions are not modified with respect to this matter.
What inspires you, inspires us. , eidebailly.com
10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA 91730-3831 1 T 909.466.4410 I F 909.466.4431 EOE
Correction of Error
As discussed in Note 18 to the financial statements, certain errors resulting in a misstatement of
amounts previously reported for Governmental Activities Capital Assets and the Private -Purpose Trust
Fund Successor Agency of the former RDA bond payments as of June 30, 2021, were discovered during
the current year. Accordingly, a restatement has been made to the Governmental Activities and the
Private -Purpose Trust Fund Successor Agency of the former RDA net position as of June 30, 2021, to
correct the error. Our opinions are not modified with respect to this matter.
Responsibilities of Management 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; and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
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 is the responsibility of
management and, 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.
Supplementary 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 combining and individual fund
statements and schedules are presented for purposes of additional analysis and are not a required part
of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. The 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.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory, the statistical sections and the Project Status: Highway 111
Bridge Funding but does not include the basic financial statements and our auditor's report thereon. Our
opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2023,
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.
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June 29, 2023
4
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MANAGEMENT DISCUSSION
AND ANALYSIS
(UNAUDITED)
This narrative provides an overview and analysis of the City of La Quinta's (City)
financial activities for the fiscal year ending June 30, 2022. The City Executive
Team encourages readers to consider this information in conjunction with the
data provided in our transmittal letter, which is in an earlier section of this report.
All amounts, unless otherwise indicated, are rounded to the nearest thousand
dollars and dates are represented by fiscal year.
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At the close of 2021/22 (June 30, 2022):
• The total assets and deferred outflows of the City exceeded its total
liabilities and deferred inflows at the close of the fiscal year 2021/22
by $806,256,000 (net position). Of this amount, $191,655,000 (unre-
stricted net position) may be used to meet ongoing obligations and
approximately $560,189,000 or 69% was invested in capital assets
and is not available to meet ongoing obligations.
• Governmental activities total net position increased by $29,585,000
and the Business -Type total net position increased by $442,000 which
is attributable to the SilverRock Golf Course.
• Governmental funds (General Fund, Housing Authority, Capital
Improvement Fund, seventeen (17) non -major special revenue funds,
ten (10) non -major capital projects funds, and one (1) non -major debt
service fund) had a combined ending fund balance of $217,122,000,
an increase of $31,275,000. The increase in fund balance can be
attributed to taxes, including sales tax and transient occupancy tax,
exceeding the original budget projections by $17,053,000 coupled with
expenditures savings from the original budget projections in the
General Fund totaling $3,269,000, and an increase of $17,317,000 in
Assigned fund balance primarily due to the Dune Palms Bridge Project
advance funding.
• The unassigned General Fund balance comprised $33,893,000, or
20%, of the total $165,907,000 balance and represented 38% of total
final General Fund budgeted expenses including transfers and multi-
year capital projects.
• Total governmental activities debt decreased by $6,951,000 from
$15,790,000 to $8,839,000. This decrease is largely attributed to a
decrease of $6,811,000 in the City's net pension liability. (Note 9)
Government -Wide Financial Statements
The government -wide financial statements provide a broad overview of the
City's finances. There are two statements - statement of net position and
statement of activities, as described below.
The statement of net position presents information on all City assets and
deferred outflows of resources as well as liabilities, and deferred inflows of
resources, with the difference between the two reported as net position.
Over time, increases or decreases in net position may serve as a useful
indicator of whether the City's financial position is improving or
deteriorating.
The statement of activities presents information showing how the
government's net position changed during the most recent fiscal year.
All changes in net position are reported as soon as the underlying event
occurs giving rise to the change, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods,
for example, earned but unused vacation leave.
Both of these government -wide financial statements distinguish City
functions, which are principally supported by taxes, fees, and
intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of
their costs through user charges (business -type activities).
Governmental activities include general government, public safety,
community services, planning and 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.
Governmenrai Tuna -
Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide
financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources, as well as on balances
of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term
financing requirements.
Because the focus is narrower than the government -wide financial
statements, it is useful to compare this information with similar
information presented for governmental activities in the government -
wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes
in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains thirty-one (31) 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-
eight (28) 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 and internal service
funds. Enterprise funds are used to report the same functions presented
as business -type activities in the government -wide financial statements.
The City maintains one (1) enterprise fund to account for the SilverRock
Golf Course operations, which is considered 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.
9
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, internal service funds, and agency
funds. The non -major governmental funds' combining statements are
presented immediately following the Required Supplementary Information
while the combined statements for the internal service funds and agency
funds are presented following the budgetary comparison schedules for the
debt service funds.
10
As noted earlier, net position may serve over time as a useful indicator of
a government's financial position. In the case of the City, assets exceeded
liabilities by $806,256,000 at the close of the 2021/22, which is
$30,027,000 more than the previous year. Increases were reflected in
restricted and unrestricted net position for governmental activities.
The largest portion of the City's Net Position ($566,261,000 or 73% for
2020/21 and $560,189,000 or 69% for 2021/22) 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
Governmental Activities
Business -Type Activities
Total by Fiscal Year
2021
%
2021
%
2021
%As
Restated
2022
Change
As Restated
2022
Change
As Restated
2022
Chance
Current and other
assets
$ 245,702,054 $
281,978,427
15%
$ 1,000,641 $
1,432,615
4 , %
$ 246,702,695 $
283,411,042
15%
Capital assets
523 734 411
517 859 684
-1 %
42 717 914
43 057 599
1 %
566,452,325
560,917,283
-1
Total Assets
769,436,465
799,838,111
4%
43,718,555
44,490,214
2 %
813,155,020
844,328,325
4 %
Deferred outflows of
resources
4,373,009
6,456,532
48 %
0 %
4,373,009
6,456,532
48
0%
Current liabilities
22,278,089
25,399,471
14%
631,891
961,618
52%
22,909,980
26,361,089
15%
Non -current liabilities
16,203,540
8,838,729
-45 %
0 %
16,203,540
8 838 729
-45
Total Liabilities
38,481,629
34,238,200
-11%
631,891
961,618
52 %
39,113,520
35 199 818
-10%
Deferred inflows of
resources
2,185,278
9,328,726
327 %
0 %
2,185,278
9,328,726
327%
Net Position:
Net investment in
capital assets
523,543,336
517,697,036
-1%
42,717,914
42,491,762
-1%
566,261,250
560,188,798
-1%
Restricted
46,711,801
54,412,358
16%
-
-
0%
46,711,801
54,412,358
16%
Unrestricted
162,887,430
190,618,323
17%
368,750
1,036,834
181%
163,256,180
191,655,157
17%
Total Net Position
733,142,567
762,727,717
4%
43,086,664
43 528 596
1%
776,229,231
806,256,3
4%
An additional portion of the City's net position ($54,412,000 or 7% in 2022
and $46,712,000 or 6% in 2021) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of
unrestricted net position $191,655,000 (24%) may be used to meet the
government's ongoing obligations to citizens and creditors.
At the end of 2021/22, the City had positive balances in all three categories
of net position for the governmental and business -type activities.
11
Governmental Activities
Governmental activities net position increased by $29,585,000 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
Activities
Business -Type Activities
Total by Fiscal Year
2021
As Restated
2022
Change
2021
As Restated
2022
Change
2021
As Restated
2022
Change
PROGRAM REVENUES:
Charges for Services $
4,705,011 $
6,883,385 $
2,178,374
$ 3,509,096 $
4,679,163
$ 1,170,067
$ 8,214,107 $
11,562,548 $
3,348,441
Operating Grants and Contributions
4,413,523
5,786,773
1,373,250
-
-
-
4413, 523
5,786,773
1, 373,250
Capital Grants and Contributions
15,770,048
11,952,031
(3,818,017)
-
-
-
15:770,048
11,952,031
(3,818,017)
GENERAL REVENUES & TRANSFERS
-
Property Taxes
16,893,629
17,823,858
930,229
-
-
-
16,893,629
17,823,858
930,229
Other Taxes
39,178,741
50,610,128
11,431,387
-
-
-
39,178,741
50,610,128
11,431,387
Investment Income
1,427,664
219,164
(1,208,500)
13,081
4,329
(8,752)
1,440,745
223,493
(1,217,252)
Net Decrease in Fair Value of
Investments
-
(5727183)
(5,727183)
-
(45,279)
(45,279)
-
(5,772,462)
(5,772,462)
Motor Vehicle In Lieu
4,376,455
4:663:327
286:872
-
-
-
4,376,a11
4,663,327
216,171
Miscellaneous
5,797,947
943,160
4 854 787
5 797 947
943 160(4,854,787)
TOTAL REVENUES
92,563,018
93,154,643
591,625
3,522,177
4,638,213
1,116,036
96,085,195
97,792,856
1,707,661
EXPENSES:
General Government
8,106,209
9,733,224
1,627,015
-
-
-
8, 106,209
9:733,22a
1,617,011
Public Safety
24,429,310
25741,782
1,312:472
-
-
-
24,429,310
25741, 782
1, 312,472
Planning & Development
6,508,522
4:716,745
(1, 791777)
-
-
-
6:511:522
1,711,741
(1,791,777)
Community Services
6,958,234
8,439,863
1,481,629
-
-
-
6958,234
8,439,863
1,481,629
Public Works
11,438,197
14,985,480
3,547,283
-
-
-
11,438,191
11,985,480
3,547,283
Interest on Long -Term Debt
42,081
11,914
(30,167)
-
-
-
42,081
11, 914
(30, 167)
Golf Course
4,169,286
4,746,281
576995
4,169,2136
4,746,281
576 995
TOTAL EXPENSES
57,482,553
63,629,008
6,146,455
4,169,286
4,746,281
576,995
61,651,839
68,375,289
6,723,450
Excess or Deficiency before
Transfers & Extraordinary Items
35,080,465
29,525,635
5 554 830
(647,109)
(108,068)
539,041
34,433,356
29,417,567
(5,015,789
TRANSFERS & EXTRAORDINARY
ITEMS:
Extraordinary Gain on Dissolution of RDA
739,933
609,515
(130,418)
-
-
-
739,933
609,515
(130,418)
Transfers
(875,1111
550 000
325,000
875,000
550,000
(325,000)
Increase in Net Position
14,945,398
29,'85,150
(5,360,248)
227,891
441,932
214,041
35,173,289
30,027,082
(5,146,207)
Net Position - Beginning
698,197,169
733,142,567
34,945,398
42,858,773
43,086,664
227,891
741,055,942
776,229,231
35,173,289
NET POSITION - ENDING
733,142,S67
762,727,717
29,585,150
43,086,664
43,528,596
441,932
776,229,231
806,256,313
30,027,082
Governmental revenues overall increased by $592,000 with the largest
increase of $11,431,000 being other taxes (the majority of this increase
includes transient occupancy taxes and sales tax combined) followed by
an increase of $2,178,000 in charges for services attributed to increased
building activity, and $1,373,000 in operating grants and contributions
These increases were offset by decreases totaling $5,727,000,
$4,855,000 and $3,818,000 for fair value of investments, miscellaneous
revenues and capital grants and contributions, respectively.
Expenses for Governmental Activities increased by $6,146,000
(an 11% increase when compared to 2020/21). The $3,547,000 increase
in Public Works reflects multiple projects previously delayed, now in the
construction phase during 2021/22. A decreases in Planning &
Development $1,792,000 was the result of reduced programs such as
the Small Business relief programs offered during the pandemic. As noted
earlier Governmental Activities include 31 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 $550,000 to the business -type
activities of the golf course. Funds were utilized to support operations
per the adjusted budget.
12
Business -Type Activities
This was the seventeenth full year of operations for the SilverRock Golf
Resort since the golf course opened in 2005.
Charges for services primarily consisted of green fees which totaled
$4,679,000, $1,170,000 higher than the previous year, with golf course
expenses of $4,746,000, which were $577,000 or approximately 14%
more than the previous year.
In 2021/22, the General Fund transferred $550,000 to the SilverRock Golf
Fund to support operations. After this transfer, the net position increased
by $442,000.
As noted earlier, the City uses fund accounting to ensure and
demonstrate compliance with finance -related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on
near -term inflows, outflows, and balances. Such information is useful in
assessing the City's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of 2021/22, the City's governmental funds reported combined
ending fund balances as follows:
City of La Quinta Governmental Fund Balances
Category
General Fund
Percent
All Other Funds
Percent
Total Funds
Percent
Nonspendable
$ 27,365,989
16%
$ 96,590
0.189%
$ 27,462,579
13%
Restricted
10,137,888
6%
54,412,358
106%
64,550,246
30%
Committed
37,209,100
22%
-
0%
37,209,100
17%
Assigned
57,300,711
35%
-
0%
57,300,711
26%
Unassigned
1 33,893,325
20%
3,293,897
-6%1
30,599,428
14%
TOTAL
$ 165,907,013
100%
$ 51,215,051
100%
$ 217,122,064
100%
Governmental fund balances ended the year totaling $217,122,000, an
increase of $31,275,000 in comparison with the prior years' ending balance
of $185,847,000. These collective fund balances include the General Fund,
Housing Authority, Financing Authority, Capital Improvement Fund, and
various Special Revenue funds.
13
Nonspendable
Nonspendable fund balance totaled $27,463,000 or 13%; 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 $64,550,000 or 30%; these amounts
represent funds with external limitations on spending. Significant
restrictions include: Section 115 trust of $10,138,000 restricted for pension
liabilities; Library and Museum totaling $9,972,000 which represents
property tax increment money that can only be used for library and
museum services; Measure A funding of $4,740,000 which can only be used
for transportation; Transportation capital project fund of $4,503,000 in
developer fees that are restricted for the acquisition, construction and
improvement of the City's infrastructure; and Economic Development
funding of $3,157,000 that can only be used for future economic
development in the City.
Committed
$37,210,000 (17%) 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 $57,301,000 (26%) of the total fund
balance. $30,762,000 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 $15,355,000 and $11,184,000 represents
funds held in trust with the County of Riverside for fire services.
Unassigned
The remaining fund balance or $30,599,000 represents unassigned fund
balances or the residual net resources after taking into consideration the
other classifications. The Capital Improvement Fund accounted for
$990,000 of the negative $3,294,000 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.
14
General Fund
The General Fund is the City's chief operating fund. At the end of 2021/22,
the unassigned fund balance was $33,893,000 while total fund balance was
$165,907,000.
The General Fund balance increased by $23,590,000 in 2021/22. Key
factors were:
• A year -over -year decrease of $2,134,000 in non -spendable is
attributed the 2021/22 Redevelopment Agency loan repayment of
$2,643,000 offset by interest earnings of $488,000 resulted in a net
decrease of $2,155,000 in Due from Other Governments. The
outstanding loan balance of $27,394,000 is recognized as 80% in the
General Fund and 20% in the Housing Authority Fund.
• Restricted reserves are limited to funds held in a Section 115 Pension
Trust set aside to fund the City's pension obligations. The trust was
initially established in 2018/19 with $6,540,000 and in 2019/20 an
additional $3,460,000 was deposited. Due to ongoing economic
volatility, investment losses caused the trust to decrease by
$1,244,000.
• Committed reserves decreased by $1,000 due to operational
carryovers. All reserve categories are fully funded to current target
levels and will be reevaluated during the City's Reserve Policy update.
• An increase of $17,317,000 in assigned reserves was due to multi-
year Capital Projects ($17,331,000) and Measure G sales tax
reserve ($226,000) combined with a decrease in the fire
services trust ($240,000). 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, 2022 is $11,184,000.
• Actual expenses were $37,651,000 lower than the final budget of
which $31,971,000 was carried over into 2022/23 for continuing
appropriations related to operations ($1,209,000) and Capital
Improvement Projects (CIP) ($30,762,000).
Funds not being carried over are recognized as Unassigned Reserve Fund
Balance in the General Fund. CIP revenue commitments are reflected in
assigned reserves and operational carryovers are noted in committed
reserves.
15
Housing Authority Fund
The Housing Authority Fund is used to account for the activities of the
Housing Authority; the Housing Authority invests in programs and projects
that preserve and increase the supply of affordable housing in the City. The
fund balance increased by $209,000 to end the year at $24,016,000.
Capital Improvement Fund
The Capital Improvement Fund is primarily used to record the expenditures
for capital projects. The fund had forty-two (42) active Capital Improvement
Projects budgeted during 2021/22. The five most active projects were:
• SilverRock Infrastructure Improvements ($2,078,000)
• La Quinta X Park ($1,573,000)
• SilverRock Event Site ($438,000)
• Monroe Street Pavement Rehabilitation ($430,000)
• Fire Station No. 70 Revitalization ($363,000)
These projects, along with others, leveraged State or Federal grant funds
or were significantly supported with Measure G sales tax revenues.
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.
Most General Fund revenues experienced positive variances when
compared to the final budget. Revenue appropriations and transfers in
increased by $13,574,000 between the original ($58,804,000) and final
amended budget ($72,378,000). The category representing the largest
variances is taxes which represents 80% of all General Fund revenues.
Actuals for taxes includes the three largest funding sources for the City -
sales taxes $28,205,000, transient occupancy taxes (TOT) $17,056,000,
and property taxes $9,675,000. Combined, these top three revenues
account for $54,936,000 or 87% of all taxes, resulting in a $11,308,000
increase from the prior fiscal year primarily in sales taxes and TOT.
16
The Extraordinary Item includes $488,000 to record the annual former
Redevelopment Agency loan repayment interest earned in 2021/22. 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.
Furthermore, 80% of the extraordinary gain is recognized in the General
Fund and 20% in the Housing Authority Fund.
Expenditure appropriations and transfers out increased by $33,778,000
between the original ($55,163,000) and final amended budget
($88,941,000) which included the following significant changes:
• $13,069,000 in operational and capital improvement project carryover
appropriations from prior fiscal years to 2021/22 as approved by City
Council.
• $14,936,000 from a combination of Measure G reserves and
unassigned fund balance to provide advanced construction funding for
the Dune Palms Road Bridge project, additional information can be
found in the Other Information section.
• $2,000,000 from unassigned fund balance to make an additional
discretionary payment to pay down the City's outstanding pension
obligations.
Capital Assets
The City's capital assets for its governmental and business -type activities
as of June 30, 2022, were $560,917,000 (net of accumulated depreciation).
This includes land, right of way, buildings and improvements, machinery
and equipment, streets and bridges, construction in progress, and the right
to use leased assets. Capital assets decreased by $5,866,000 in 2021/22
primarily due to a decrease in construction in progress.
17
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)
Description
Governmental Activities
2021
As Restated 2022
Business -Type Activities
2021
As Restated 2022
Total By Fiscal Year
2021
As Restated 2022
Land
$ 66,901,495 $
67,346,020
$ 39,712,955
$ 39,712,955
$ 106,614,450
$ 107,058,975
Buildings & Improvements
34,773,097
36,203,626
2,913,188
2,698,640
37,686,285
38,902,266
Equipment & Furniture
1,448,577
1,227,810
91,771
82,227
1,540,348
1,310,037
Vehicles
402,589
917,322
-
-
402,589
917,322
Software
-
-
-
-
Infrastructure
381,409,739
394,887,936
-
-
381,409,739
394,887,936
Right to use Leased Assets
295,941
157,485
644,349
563,778
940,290
721,263
Construction in Progress
38,189,785
17,119,485
1 -
-
38,189,785
17,119,485
AL TOT
523,421,223
517,859,684
43,362,263
43,057,599
566,783,486
560,917,283
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.
Business -Type Activities
The Golf Course capital asset balance at June 30, 2022, was $43,058,000,
net of accumulated depreciation. The balance decrease of $305,000 reflects
accumulated depreciation expensed in 2021/22.
Additional information on the City of La Quinta's capital assets can be found
in Note 4 to the financial statements.
Long -Term Debt
At the end of 2021/22, the City governmental activities had total outstanding
debt of $8,838,000 which is $6,951,058 less than the previous year. Of the
total amount, $163,000 represents leases and $962,000 in employee
compensated absences. The decrease of $6,811,000 in the Net Pension
Liability is described in Note 9 and the obligation is not reduced by the
Pension Trust balance of $10,138,000 until funds are remitted to CalPERS.
18
City of La Quinta Outstanding Debt
Debt Type:
Leases
Financed Purchases
Compensated Absences
Net Pension Liability
TOTAL
Governmental Activities
As Restated
2022
$ 295,942 $
162,648
41,225
22,079
950,309
962,229
14,502,311
7,691,773
$ 15,789,787 $
8,838,729
Additional information on long-term debt can be found in Note 5 of the
financial statements.
REQUEST FOR INFORMATION 11
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, California, 92253, by telephone at 760-777-7055, or by email at
finance@laquintaca.gov.
19
This Page Left Intentionally Blank
City of La Quinta, California
Statement of Net Position
June 30, 2022
Primary Government
Governmental
Business -Type
Activities
Activities
Total
Assets
Cash and investments
$ 197,971,033
$ 1,109,952
$ 199,080,985
Restricted cash and investments
10,137,888
-
10,137,888
Receivables:
Accounts
2,135,731
-
2,135,731
Taxes
7,129,620
-
7,129,620
Notes and loans
22,685,029
-
22,685,029
Accrued interest
5,159,170
344
5,159,514
Leases
1,523,705
-
1,523,705
Prepaid costs
373,102
-
373,102
Deposits
47,964
250,000
297,964
Due from other governments
29,274,122
-
29,274,122
Inventories
-
72,319
72,319
Land held for resale
5,403,652
-
5,403,652
Net OPEB asset
137,411
-
137,411
Capital assets not being depreciated
370,322,858
39,712,955
410,035,813
Capital assets, net of depreciation
147,379,341
2,780,866
150,160,207
Right to use leased assets, net of
accumulated amortization
157,485
563,778
721,263
Total assets
799,838,111
44,490,214
844,328,325
Deferred Outflows of Resources
Deferred amounts related to OPEB
249,972
-
249,972
Deferred amounts related to pensions
6,206,560
-
6,206,560
Total deferred outflows of resources
6,456,532
-
6,456,532
Liabilities
Accounts payable
10,125,153
359,509
10,484,662
Accrued liabilities
479,196
-
479,196
Unearned revenue
6,404,720
-
6,404,720
Deposits payable
7,098,603
35,500
7,134,103
Accrued interest
170
772
942
Due to other governments
1,291,629
-
1,291,629
Noncurrent liabilities:
Due within one year
399,435
250,317
649,752
Due in more than one year
8,439,294
315,520
8,754,814
Total liabilities
34,238,200
961,618
35,199,818
See Notes to Financial Statements 21
City of La Quinta, California
Statement of Net Position
June 30, 2022
Primary Government
Governmental
Business -Type
Activities
Activities
Total
Deferred Inflows of Resources
Deferred amounts related to OPEB
$ 219,265
$ -
$ 219,265
Deferred amounts related to pensions
7,627,291
-
7,627,291
Deferred amounts related to leases
1,482,170
-
1,482,170
Total deferred inflows of resources
9,328,726
-
9,328,726
Net Position
Net investment in capital assets
517,697,036
42,491,762
560,188,798
Restricted for:
Planning and development projects
25,118,552
-
25,118,552
Public safety
1,073,419
-
1,073,419
Public works
7,353,021
-
7,353,021
Capital projects
6,897,057
-
6,897,057
Community services
13,970,309
-
13,970,309
Unrestricted
190,618,323
1,036,834
191,655,157
Total net position
$ 762,727,717
$ 43,528,596
$ 806,256,313
See Notes to Financial Statements 22
Functions/Programs
Primary Government
General government
Public safety
Planning and development
Community services
Public works
Interest on long-term debt
Total governmental activities
Business -Type Activities
Golf Course
Total primary government
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2022
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Expenses
Services
and Grants
and Grants
$ 9,733,224
$ 1,402,810
$ 89,491
$ 1,530
25,741,782
648,914
28,809
167,303
4,716,745
1,315,760
220,366
5,224,241
8,439,863
137,769
4,420,805
-
14,985,480
3,378,132
1,027,302
6,558,957
11,914
-
-
-
63,629,008
6,883,385
5,786,773
11,952,031
4,746,281
4,679,163
-
-
$ 68,375,289
$ 11,562,548
$ 5,786,773
$ 11,952,031
General Revenues
Taxes
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Othertaxes
Motor vehicle in lieu - unrestricted
Investment income
Net decrease in fair value of investments
Other
Extraordinary item
Transfers
Total General Revenues, Extraordinary Items and Transfers
Change in Net Position
Net Position at Beginning of Year, as restated
Net Position at End of Year
See Notes to Financial Statements 23
City of La Quinta, California
Statement of Activities
Year Ended June 30, 2022
Net (Expense) Revenue and Changes in Net Position
Total
Primary Government
Program
Governmental
Business -Type
Revenues
Activities
Activities
Total
$ 1,493,831
$ (8,239,393)
$ - $
(8,239,393)
845,026
(24,896,756)
-
(24,896,756)
6,760,367
2,043,622
-
2,043,622
4,558,574
(3,881,289)
-
(3,881,289)
10,964,391
(4,021,089)
-
(4,021,089)
-
(11,914)
-
(11,914)
24,622,189
(39,006,819)
-
(39,006,819)
4,679,163
(67,118)
(67,118)
$ 29,301,3S2
(39,006,819)
(67,118)
(39,073,937)
17,823,858
-
17,823,858
18,365,424
-
18,365,424
28,204,906
-
28,204,906
2,240,468
-
2,240,468
446,745
-
446,745
1,352,585
-
1,352,585
4,663,327
-
4,663,327
219,164
4,329
223,493
(5,727,183)
(45,279)
(5,772,462)
943,160
-
943,160
609,515
-
609,515
(550,000)
550,000
-
68,591,969
509,050
69,101,019
29,585,150
441,932
30,027,082
733,142,567
43,086,664
776,229,231
$ 762,727,717 $
43,528,596
$ 806,256,313
See Notes to Financial Statements 24
Assets
Pooled cash and investments
Restricted cash and investments
Receivables
Accounts
Taxes
Notes and loans
Accrued interest
Leases
Prepaid costs
Deposits
Due from other governments
Due from other funds
Land held for resale
Total assets
Liabilities, Deferred Inflows of
Resources and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total Deferred Inflows of Resources
City of La Quinta, California
Balance Sheet - Governmental Funds
June 30, 2022
Special
Capital Projects
Revenue Fund
Fund Other Total
Housing
Capital Governmental Governmental
General Authority
Improvement Funds Funds
$ 135,854,470 $
16,522,629 $
10,137,888
-
924,921
15,754
6,452,356
-
-
22,685,029
89,853
5,041,561
1,523,705
-
46,990
-
-
47,964
22,235,983
5,478,837
943,965
-
5,403,652
$ 183,613,783 $
49,791,774 $
$ 8,095,423 $ 71,995 $
427,678 18,011
7,072,753 25,850
18,353 -
15,614,207 115,856
610,393 25,660,061
1,482,170 -
2,092,563 25,660,061
1,222,437 $ 34,238,364 $ 187,837,900
- - 10,137,888
899,368 295,688
2,135,731
- 677,264
7,129,620
-
22,685,029
21,416
5,152,830
-
1,523,705
96,590
143,580
- -
47,964
147,640 1,411,662
29,274,122
- -
943,965
5,403,652
2,269,445 $ 36,740,984 $ 272,415,986
905,534 $
887,046 $
9,959,998
-
32,091
477,780
1,411,216
4,993,504
6,404,720
-
-
7,098,603
1,273,276
1,291,629
943,965
943,965
2,316,750
8,129,882
26,176,695
943,167
421,436
27,635,057
-
-
1,482,170
943,167
421,436
29,117,227
See Notes to Financial Statements 25
City of La Quinta, California
Balance Sheet — Governmental Funds
June 30, 2022
Special Capital Proiects
Revenue Fund
Fund
Other
Total
Housing
Capital
Governmental
Governmental
General
Authority
Improvement
Funds
Funds
Fund Balances
Nonspendable
Prepaid costs
$ 46,990
$
$
$ 96,590
$ 143,580
Land held for resale
5,403,652
-
5,403,652
Due from successor agency
21,915,347
-
21,915,347
Restricted for
Planning and development
projects
-
24,015,857
1,102,695
25,118,552
Public safety
-
1,073,419
1,073,419
Community services
13,970,309
13,970,309
Public works
7,3S3,021
7,3S3,021
Capital projects
-
6,897,0S7
6,897,057
Section 11S trust
10,137,888
10,137,888
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
1,209,100
1,209,100
Assigned for
Public safety
11,183,821
11,183,821
Sales Tax Reserve
15,355,043
15,355,043
Capital projects
30,761,847
30,761,847
Unassigned
33,893,325
(990,472)
(2,303,425)
30,599,428
Total fund balance
165,907,013
24,015,857
(990,472)
28,189,666
217,122,064
Total liabilities, deferred inflows of
resources and fund balances
$ 183,613,783
$ 49,791,774
$ 2,269,445
$ 36,740,984
$ 272,415,986
See Notes to Financial Statements 26
City of La Quinta, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:
Fund balances of governmental funds
Capital assets net of accumulated depreciation/amortization are not financial
resources, and therefore have not been included as current financial
resources in governmental fund activity
Net OPEB asset is not considered a current financial resource
Long-term liabilities, including leases, financed purchases,
compensated absences and pension liabilities
are not due and payable in the current period and therefore are
not reported in the governmental funds:
Leases
Financed purchases
Compensated absences
Net pension liability
Deferred outflows related to pensions
Deferred outflows related to OPEB
Deferred inflows related to pensions
Deferred inflows related to OPEB
Revenues reported as unavailable revenue in the governmental
funds are recognized in the statement of activities
Internal service funds are used by management to charge the
costs of certain activities, such as equipment management
and self-insurance, to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities of the statement of net position
Net Position of Governmental Activities
$ 217,122,064
504,365,670
137,411
$ (27,414)
(22,079)
(962,229)
(7,691,773) (8,703,495)
6,206,560
249,972
(7,627,291)
(219,265)
27,635,057
23,561,034
$ 762,727,717
See Notes to Financial Statements 27
City of La Quinta, California
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds
Year Ended June 30, 2022
Special
Capital Projects
Revenue Fund
Fund
Other
Total
Housing
Capital
Governmental
Governmental
General
Authority
Improvements
Funds
Funds
Revenues
Taxes
$ 63,010,284
$
$
$ 2,096,876
$ 65,107,160
Assessments
-
-
-
969,257
969,257
Licenses and permits
4,521,449
-
-
4,521,449
Intergovernmental
8,636,752
-
2,121,980
5,230,403
15,989,135
Charges for services
1,623,951
-
-
-
1,623,951
Investment income (loss)
(51,519)
1,448,361
469,293
1,866,135
Net decrease in fair value of
investments
(3,964,822)
(488,218)
-
(958,287)
(5,411,327)
Fines and forfeitures
657,589
-
-
-
657,589
Developer participation
-
-
70,916
5,513,230
5,584,146
Miscellaneous
562,810
365,484
-
42,105
970,399
Total revenues
74,996,494
1,325,627
2,192,896
13,362,877
91,877,894
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Principal
Interest
Total expenditures
Excess (Deficiency) of Revenues
over(under)Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing
sources (uses)
Extraordinary Item
Successor Agency loan
Net Changes in Fund Balances
Fund Balances, Beginning of Year
As restated
10,515,450
-
-
1,100
10,516,550
25,686,299
-
-
55,483
25,741,782
3,711,442
1,187,673
35,981
298,969
5,234,065
4,360,453
50,700
-
1,914,751
6,325,904
2,095,663
-
-
3,558,417
5,654,080
739,530
-
6,374,663
53,253
7,167,446
10,705
-
-
-
10,705
779
-
-
11,135
11,914
47,120,321
1,238,373
6,410,644
5,893,108
60,662,446
27,876,173
87,254
(4,217,748)
7,469,769
31,215,448
-
-
4,604,440
1,527,000
6,131,440
(4,773,315)
-
(1,908,125)
(6,681,440)
(4,773,315)
-
4,604,440
(381,125)
(550,000)
487,612
121,903
-
-
609,515
23,590,470
209,157
386,692
7,088,644
31,274,963
142,316,543
23,806,700
(1,377,164)
21,101,022
185,847,101
Fund Balances, End of Year $ 165,907,013 $ 24,015,857 $ (990,472) $ 28,189,666 $ 217,122,064
See Notes to Financial Statements
28
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, 2022
Amounts reported for governmental activities in the statement of activities are different because:
Net changes in fund balances - total governmental funds
$ 31,274,963
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 and
amortization expense. This is the amount by which capital outlays
exceeded depreciation in the current period.
Purchase of capital assets recorded in governmental funds
$ 7,167,447
Expenditures classified in various functions
are reclassified as capital additions
(5,074,036)
Depreciation and Amortization Expense,
net of adjustments for deletions
(7,613,813) (5,520,402)
Debt service payments for principal payments are reported as
expenditures in the governmental funds, but are not reported as
expenses in the statement of activities
Lease principal payments
10,705
Financed purchases payments
19,146
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. (11,920)
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. 16,917
Governmental funds report pension contributions as expenditures.
However, in the Statement of Activities, pension expense is measured
as the change in pension liability and the amortization of deferred
outflows and inflows of resources related to pension. This amount
represents the net change in pension related amounts. 1,841,126
Revenues reported as unavailable revenue in the governmental
funds are recognized as operating contributions and grants
in the statement of activities. 1,324,426
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. 630,189
Change in net position of governmental activities $ 29,585,150
See Notes to Financial Statements 29
City of La Quinta, California
Statement of Net Position — Proprietary Funds
June 30, 2022
Business -Type
Governmental
Activities
Activities
Enterprise Funds
Internal Service
Golf Course
Funds
Assets
Current
Pooled cash and investments
$ 1,109,952
$ 10,133,133
Receivables
Accrued interest
344
6,340
Prepaid costs
-
229,522
Deposits
250,000
-
Inventories
72,319
-
Total current assets
1,432,615
10,368,995
Noncurrent
Capital assets not being depreciated
39,712,955
5,904,645
Capital assets, net of depreciation
2,780,866
7,459,212
Right to use leased assets, net of accumulated amortization
563,778
130,157
Total noncurrent assets
43,057,599
13,494,014
Total assets
44,490,214
23,863,009
Liabilities
Current
Accounts payable
359,509
165,155
Accrued liabilities
-
1,416
Deposits payable
35,500
-
Accrued interest
772
170
Current portion of capital leases
250,317
98,772
Total current liabilities
646,098
265,513
Noncurrent Liabilities
Long-term portion of capital leases
315,520
36,462
Total liabilities
961,618
301,975
Net Position
Net investment in capital assets
42,491,762
13,358,780
Unrestricted
1,036,834
10,202,254
Total net position
43,528,596
23,561,034
Total liabilities and net position
$ 44,490,214
$ 23,863,009
See Notes to Financial Statements
30
City of La Quinta, California
Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds
Year Ended June 30, 2022
Business -Type
Governmental
Activities
Activities -
Enterprise Funds
Internal
Golf Course
Service Funds
Operating Revenues
Sales and service charges
$ 4,679,163
$ 4,333,901
Insurance recoveries
-
82,637
Total operating revenues
4,679,163
4,416,538
Operating Expenses
Administration and general
39,934
296,351
Fuel and oil
-
122,100
Maintenance and parts
-
123,855
Contract services
4,005,260
675,979
Software and supplies
-
1,530,336
Depreciation and amortization expense
505,505
990,046
Other
183,160
-
Total operating expenses
4,733,859
3,738,667
Operating Loss
(54,696)
677,871
Nonoperating Revenues (Expenses)
Investment income
4,329
79,631
Net decrease in fair value of
investments
(45,279)
(315,854)
Miscellaneous revenues
-
187,320
Gain on disposal of capital assets
-
4,203
Interest expense
(12,422)
(2,982)
Total nonoperating revenues (expenses)
(53,372)
(47,682)
Income (Loss) Before Transfers
(108,068)
630,189
Transfers in
550,000
-
Changes in Net Position
441,932
630,189
Net Position, Beginning of the Year, as restated
43,086,664
22,930,845
Net Position at End of Year
$ 43,528,596
$ 23,561,034
See Notes to Financial Statements 31
City of La Quinta, California
Statement of Cash Flows —Proprietary Funds
Year Ended June 30, 2022
Business -Type
Governmental
Activities-
Activities -
Enterprise Funds
Internal
Golf Course
Service Funds
Operating Activities
Cash received from customers and users
$ 4,699,093
$ -
Cash received from interfund services provided
-
4,339,997
Cash received from insurance recoveries
-
82,637
Cash payments to suppliers for goods and services
(4,425,303)
(2,685,423)
Cash payments to employees for services
(39,934)
-
Net Cash from Operating Activities
233,856
1,737,211
Non -Capital Financing Activities
Cash transfers in
550,000
-
Capital and Financing Activities
Cash paid for lease liability- principal portion
(230,784)
(122,589)
Cash paid for lease liability- interest portion
(11,650)
(2,812)
Capital contributions
-
187,320
Acquisition and construction of capital assets
(48,570)
(948,910)
Proceeds from sales of capital assets
-
4,203
Net Cash used for Capital and Related Financing Activities
(291,004)
(882,788)
Investing activities
Investment loss
(41,082)
(238,752)
Net Increase (Decrease) in Cash and Cash Equivalents
451,770
615,671
Cash and Cash Equivalents at Beginning of Year
658,182
9,517,462
Cash and Cash Equivalents at End of Year
$ 1,109,952
$ 10,133,133
See Notes to Financial Statements 32
City of La Quinta, California
Statement of Cash Flows —Proprietary Funds
Year Ended June 30, 2022
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)
$ (54,696)
$ 677,871
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities:
Depreciation and amortization
505,505
990,046
Changes in
Accounts receivable
-
6,096
Inventories
19,929
-
Prepaid costs
-
(7,599)
Accounts payable
(236,882)
70,613
Accrued liabilities
-
184
Net Cash from (used for) Operating Activities $ 233,856 $ 1,737,211
Non Cash Capital and Related Financing Activities
Lease liability for the acquisition of a right to use leased asset $ (152,272) $ -
See Notes to Financial Statements 33
City of La Quinta, California
Statement of Fiduciary Net Position
June 30, 2022
Pension Trust
Private -Purpose
Fund
Trust Fund
Successor
Supplemental
Agency of the
Pension Plan
former RDA
Assets
Pooled cash and investments
$ 84,782
$ 18,190,868
Receivables
Notes and loans
-
987,464
Accrued interest
54
9,203
Prepaid asset
-
304,775
Due from other governments
-
1,273,276
Restricted assets
Cash and investments with fiscal agent
-
26
Capital assets- land
-
8,631,040
Total assets
84,836
29,396,652
Deferred Outflows of Resources
Deferred charge on refunding
-
15,766,509
Total deferred outflows of resources
-
15,766,509
Liabilities
Accounts payable
-
25,036
Accrued interest
-
1,078,810
Long-term liabilities
Due in one year
-
16,559,682
Due in more than one year
-
183,741,791
Total liabilities
-
201,405,319
Net Position (Deficit)
Restricted for pensions
$ 84,836
Held in trust
$ (156,242,158)
See Notes to Financial Statements 34
City of La Quinta, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2022
Pension Trust
Private -Purpose
Fund
Trust Fund
Successor
Supplemental
Agency of the
Pension Plan
Former RDA
Additions
Taxes
$ -
$ 20,065,372
Investment income
671
50,111
Net decrease in fair value of
investments
(2,789)
(73,710)
Other revenues
5,000
59,282
Total additions
2,882
20,101,055
Deductions
Administrative expenses
12,833
54,421
Contractual services
-
1,139,256
Interest and fiscal charges
-
1,912,072
Total deductions
12,833
3,105,749
Extraordinary Item
Successor Agency loan principal
-
(609,515)
Changes in Net Position
(9,951)
16,385,791
Net Position/(Deficit) - Beginning of the Year, as restated
94,787
(172,627,949)
Net Position/(Deficit) - End of the Year
$ 84,836
$ (156,242,158)
See Notes to Financial Statements 35
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 1- Summary of Significant Accounting Policies
Reporting Entity
The City of La Quinta, California (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.
33
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
34
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
35
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
36
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
37
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
38
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
Lease Receivable
Lease receivable is recorded by the City as the present value of future lease payments expected to be received
from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease
receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting
period. The present value of future lease payments to be received are discounted based on the interest rate the
City charges the lessee.
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.
39
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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
Equipment and furniture
Vehicles
Infrastructure
Software
Right to use leased asset
10-30 years
3-20 years
5-10 years
10-50 years
5-10 years
Shorter of useful life or lease term
Right to use leased assets are recognized at the lease commencement date and represent City of La Quinta's
right to use an underlying asset for the lease term. Right to use leased assets are measured at the initial value of
the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease
incentives received from the lessor at or before the commencement of the lease term, plus any initial direct
costs necessary to please the lease asset into service. Right to use leased assets are amortized over the shorter
of the lease term or useful lives of the underlying asset using the straight-line method. The amortization period
varies from 3 to 5 years.
Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1 percent of assessed
value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are
then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those
taxes that are received from the County within 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 asset 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 9
and 11 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 19 for more information on the deferred outflows of resources related to
debt refundings.
40
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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 asset 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 two items on the governmental fund balance sheet that qualify for reporting in this
category. The first is unavailable revenues that were not received within the City's availability period. These
amounts are deferred and recognized as inflows of resources in the period that the amounts become available.
At the government -wide statements, this item is eliminated and recognized as revenue in the period earned
since "availability" of resources is not a criteria used in government -wide statements. The second item is a
deferred inflow related to leases where the City is the lessor. The deferred inflows of resources related to leases
is recognized on a straight line basis as an inflow of resources (revenue) over the term of the lease. Additionally,
governmental activities recorded deferred inflows of resources related to pensions and OPEB. See Notes 9 and
11 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.
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.
Lease liabilities represent the City's obligation to make lease payments arising from the lease. Lease liabilities
are recognized at the lease commencement date based on the present value of future lease payments expected
to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate
determined by the City.
41
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
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.
42
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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
Adooted in the Current Year
GASB Statement No. 87 — In June 2017, GASB issued Statement No. 87, Leases. As of July 1, 2021, the City
adopted GASB Statement No. 87, Leases. The implementation of this standard establishes a single model for
lease accounting based on the foundational principle that leases are financings of the right to use an underlying
asset. The standard requires recognition of certain right to use leased assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows of resources
based on the payment provisions of the contract. The standard also requires lessors to recognize a lease
receivable and deferred inflow of resources. The effect of the implementation of this standard on beginning net
position is disclosed in Note 18 and the additional disclosures required by this standards are included in Notes 4
and 5.
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. 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. 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.
43
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
GASB Statement No. 99 — In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this
Statement are to enhance comparability in accounting and reporting and to improve the consistency of
authoritative literature by addressing (1) practice issues that have been identified during implementation and
application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The
requirements of this Statement related to extension of the use of the London Interbank Offered Rate (LIBOR),
accounting for Supplemental Nutrition Assistance Program (SNAP) distributions, disclosures of nonmonetary
transactions, pledges of future revenues by pledging governments, clarification of certain provisions in
Statement No. 34, as amended, and terminology updates related to Statements No. 53 and No. 63 are effective
upon issuance. The requirements of this Statement related to leases, Public -Private and Public -Public
Partnerships (PPPs), and Subscription -Based Information Technology Arrangements (SBITAs) are effective for
fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements of this
Statement related to financial guarantees and the classification and reporting of derivative instruments within
the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023, and all reporting
periods thereafter. The City has not determined the effect on the financial statements.
GASB Statement No. 100 — In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error
Corrections —An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance
accounting and financial reporting requirements for accounting changes and error corrections to provide more
understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing
accountability. The requirements of this Statement are effective for accounting changes and error corrections
made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The City has not
determined the effect on the financial statements.
GASB Statement No. 101— In June 2022, the GASB issued Statement No. 101, Compensated Absences. The
objective of this Statement is to better meet the information needs of financial statement users by updating the
recognition and measurement guidance for compensated absences. That objective is achieved by aligning the
recognition and measurement guidance under a unified model and by amending certain previously required
disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023,
and all reporting periods thereafter. The City has not determined the effect on the financial statements.
Note 2 - Cash and Investments
Cash and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments $ 199,080,985
Restricted cash and investments 10,137,888
Statement of Fiduciary Net Position
Cash and investments 18,275,650
Cash and investments with fiscal agent 26
Total cash and investments $ 227,494,549
44
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Cash and investment as of June 30, 2022, consist of the following:
Cash on hand $ 4,300
Deposits with financial institutions 9,710,180
Investments 217,780,069
Total cash and investments $ 227,494,549
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the California Government Code and the
City's investment policy. The table also identifies certain provisions of the California Government Code (or the
City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of
credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by the
provisions of debt agreements of the City, rather than the general provisions of the California Government Code
or the City's investment policy.
Maximum
Maximum
Maximum
Percentage
Investment
Investment Types
Maturity
Allowed
in One Issuer
U.S. Treasury Obligations
5 years
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
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 50%-80%, respectively.
There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity
of an investments.
45
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates.
One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short
term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is
maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments held by bond
trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the
City's investments by maturity:
Investment Type
Certificates of Deposit
Federal agency securities
Federal Farm Credit Bank
Federal National Mortgage Association
Federal Home Loan Mortgage Corp
Federal Home Loan Bank
U.S. Treasury Notes
Corporate Notes
Local Agency Investment Fund
CAM P
Riverside County Pool
Section 115 Trust
Equity Mutual Funds
Fixed Income Mutual Funds
Held by Fiscal Agent
Money Market Mutual Funds
Total
Remaining Maturity (in Years)
1 year
Total Or Less 1 to 3 years 3 to 5 years
$ 31,318,110 $ 6,852,392 $ 17,772,362 $ 6,693,356
12,305,565
2,974,005
7,032,260
2,299,300
6,584,832
999,310
1,894,590
3,690,932
5,871,006
-
929,580
4,941,426
12,795,683
-
3,151,383
9,644,300
64,252,055
42,259,095
8,696,350
13,296,610
1,850,088
997,095
396,248
456,745
34,180,264
34,180,264
-
-
27,875,714
27,875,714
-
-
11,183,822
11,183,822
-
-
2,873,349
2,873,349
-
-
6,689,555
6,689,555
-
-
26
26
-
-
$ 217,780,069 $ 136,884,627 $ 39,872,773 $ 41,022,669
46
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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:
Investment Type
Total
AAA AA+ AA AA -
Federal Agency Securities
$ 37,557,086
$ - $ 37,557,086 $ - $ -
Corporate Notes
1,850,088
852,993 - 499,680 497,415
CAMP
27,875,714
27,875,714 - - -
Total
67,282,888
$ 28,728,707 $ 37,557,086 $ 499,680 $ 497,415
Exempt from Credit Risk disclosure:
U.S. Treasury Notes
64,252,055
Not rated:
Certificates of Deposit
31,318,110
Local Agency Investment Pool
34,180,264
Riverside County Pool
11,183,822
Section 115 Trust:
Equity Mutual Funds
2,873,349
Fixed Income Mutual Funds
6,689,555
Held by Fiscal Agent:
Money Market Mutual Funds
26
Total investments
$ 217,780,069
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
Issuer Investment Type Amount Portfolio
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Agency Securities
Federal Agency Securities
$ 12,305,565 6%
12,795,683 6%
47
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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
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.
48
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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.
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, 2022:
Total
Level 1
Level 2
Investments
U.S. Treasury Notes
$ 64,252,055
$ 64,252,055
$ -
Federal Agency Securities
37,557,086
-
37,557,086
Corporate Notes
1,850,088
-
1,850,088
Certificates of Deposit
31,318,110
-
31,318,110
Section 115 Trust
Equity Mutual Funds
2,873,349
2,873,349
-
Fixed Income Mutual Funds
6,689,555
6,689,555
-
Total leveled investments
144,540,243
$ 73,814,959
$ 70,725,284
Investments with uncategorized inputs
Local Agency Investment Fund
34,180,264
CAM P
27,875,714
Riverside County Pool
11,183,822
Held by Fiscal Agent
Money Market Mutual Funds
26
Total investments
$ 217,780,069
49
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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, 2022, the
outstanding principal balance is $2,035,388 and the outstanding interest is $3,254,405.
In February 2011, the former redevelopment agency entered into Disposition and Development Agreement with
Coral Mountain Partners L.P. ("Coral Mountain") to fund up to $29,000,000 for the construction of a low- and
moderate -income apartment complex with an estimated completion date of the apartment complex of March
2014. The former redevelopment agency's $29,000,000 loan is evidenced by a Promissory Note executed by
Coral Mountain ("Note"). Interest on the outstanding note amount will bear simple interest of 1 percent.
Principal and interest will be repaid on or before May 1st of each year from annual residual receipts as defined
in the Note once the project is completed and may be repaid early if the property is refinanced, or if the
property is transferred to another entity. On February 1, 2012, this receivable was transferred to the Housing
Authority which took over the housing function of the former redevelopment agency upon dissolution. As of
June 30, 2022, the outstanding principal balance is $20,628,343 and the outstanding interest balance is
$1,777,312.
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 $21,298 at June 30, 2022.
50
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 4 - Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2022, is as follows:
Balance at
July 1, 2021 Balance at
As Restated Additions Deletions Transfers June 30, 2022
Governmental activities
Capital assets, not being depreciated
Land
Right of way
Construction -in -progress
Total capital assets,
not being depreciated
Capital assets, being depreciated
Buildings and improvements
Equipment and furniture
Vehicles
Infrastructure
Total capital assets,
being depreciated
Less accumulated depreciation for
Buildings and improvements
Equipment and furniture
Vehicles
Infrastructure
Total accumulated depreciation
Total capital assets,
being depreciated, net
Right to use leased assets, being amortized
Building
Equipment
Vehicles
Total right to use leased assets,
being amortized
Less Accumulated Amortization for
Building
Equipment
Vehicles
Total Accumulated amortization
Total right to use leased assets,
being amortized, net
Total Governmental Activitites
$ 66,901,495 $ 604,525 $ 160,000 $ 67,346,020
285,857,353 - - 285,857,353
38,189,785 6,992,340 4,574,002 (23,488,638) 17,119,485
390,948,633 7,596,865 4,734,002 (23,488,638) 370,322,858
74,672,282
141,884
-
3,802,065 78,616,231
4,249,712
101,000
262,645
- 4,088,067
1,319,594
796,759
210,684
- 1,905,669
236,137,878
59,500
870,770
19,686,573 255,013,181
316,379,466
1,099,143
1,344,099
23,488,638 339,623,148
39,899,185
2,513,420
-
2,801,135
321,767
262,645
917,005
130,164
58,822
140,585,492
6,196,642
799,536
184,202,817
9,161,993
1,121,003
132,176,649
(8,062,850)
223,096
42,412,605
2,860,257
988,347
145,982,598
192,243,807
23,488,638 147,379,341
78,226 78,226
38,118 38,118
179,597 - 179,597
295,941 -
295,941
- 33,681
33,681
10,791
10,791
93,984
93,984
138,456 -
138,456
295,941 (138,456) - 157,485
$ 523,421,223 $ (604,441) $ 4,957,098 $ $ 517,859,684
51
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Depreciation expense was charged to the following functions in the Statement of Activities:
General governments
$
364,842
Planning and development
24,629
Community services
1,513,484
Public works
6,407,448
Internal service funds
990,046
$
9,300,449
Capital asset activity for business -type activities
for the year ended June 30, 2022,
is as follows:
Balance at
July 1, 2021
Balance at
As Restated
Additions
Deletions
June 30, 2022
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
48,570
-
1,670,293
Software
20,255
-
-
20,255
Total capital assets,
being depreciated
8,278,443
48,570
-
8,327,013
Less accumulated depreciation for
Buildings and improvements
3,723,277
214,548
-
3,937,825
Equipment and furniture
1,529,952
58,114
-
1,588,066
Software
20,255
-
-
20,255
Total accumulated
depreciation
5,273,484
272,662
-
5,546,146
Total capital assets,
being depreciated, net
3,004,959
(224,093)
-
2,780,866
Right to use leased assets, being amortized
Equipment
644,349
152,272
-
796,621
Less Accumulated Amortization for
Equipment
-
232,843
-
232,843
Total right to use leased assets,
being amortized, net
644,349
(80,571)
-
563,778
Total Business -Type Activities
$ 43,362,263
$ (304,664) $
-
$ 43,057,599
Depreciation expense was charged to the following
functions in the Statement of
Activities:
Golf Course
$
505,505
52
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 5 - 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, 2022:
Balance at
July 01, 2021 Balance
as, restated Additions Deletions June 30, 2022
Governmental Activities
Compensated absences payable $
950,309 $
962,230 $ 950,310 $
962,229
Leases
295,942
- 133,294
162,648
Financed purchases
41,225
- 19,146
22,079
Net pension liability
14,502,311
- 6,810,538
7,691,773
Due within
One year
$ 268,371
109,536
21,528
$ 15,789,787 $ 962,230 $ 7,913,288 $ 8,838,729 $ 399,435
Compensated absences and the net pension liability have been typically liquidated from the General Fund. A
description of the City's net pension liability is detailed at Note 9. A description of the City's net OPEB
(asset)/liability is detailed at Note 11. A description of the City's lease activity is detailed in Note 6.
Financed Purchases
The City has entered into agreements for the purchase of copiers purchased under financing leases. Such leases
require annual payments of principal and interest, with interest rates ranging from 8.47% to 9.5%, and will be
fully amortized by the year 2024.
Payments under financed purchases at June 30, 2022 are:
Year Ending June 30, Principal
2023 $ 20,300
2024 551
$ 20,851
Interest
$ 1,228
$ 1,228
The following is a summary of changes in business -type activities long-term liabilities of the City for the fiscal
year ended June 30, 2022:
July 01, 2021 Balance Due within
as, restated Additions Deletions June 30, 2022 One year
Business- Type Activities
Leases $ 644,349 $ 152,272 $ (230,784) $ 565,837 $ 250,317
53
A description of the City's lease activity is detailed in Note 6.
Remaining principal and interest payments on the leases are as follows:
Government Activities
Year Ending June 30,
2023
2024
2025
Business Activities
Year Ending June 30,
2023
2024
2025
2026
2027
Note 6 - Leases
Lessee Activities
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Principal
Interest
$
109,536
$
1,773
42,189
506
10,923
78
$
162,648
$
2,357
Principal
Interest
$
250,317
$
11,288
191,658
6,190
72,564
2,820
32,029
1,416
19,269
241
$
565,837
$
21,955
The City has entered into multiple lease agreements for buildings and equipment. The City is required to make
principal and interest payments through February 2027. The lease agreements have interest rates between 1.5%
to 4% based on the City's estimated incremental borrowing rate at the inception of the lease. As of June 30,
2022, the net right to use asset balance is $721,263 and the lease liability balance is $728,485. The current year
amortization and interest expense associated with the lease activities was $371,299 and $16,182.
Lessor Activities
The City has accrued a receivable for three land leases. The remaining receivable for these leases was
$1,523,705 for the year ended June 30, 2022. Deferred inflows related to these leases were $1,482,170 as of
June 30, 2022. Interest revenue recognized on these leases was $47,794 for the year ended June 30, 2022.
Principal receipts of $130,551 were recognized during the fiscal year. The interest rate on the leases was 3
percent. Final receipt is expected in fiscal year 2043.
54
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 7 - Interfund Receivables and Payables
The composition of current interfund receivable and payable balances is as follows:
Due from Other Funds
General Fund
Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2022.
Note 8 - Interfund Transfers
Due to Other Funds
Non -Major
Governmental
$ 943,965
Transfer Out
Non -Major
Transfers In General Fund Governmental Total
Capital Improvements Fund $ 2,696,315 $ 1,908,125 $ 4,604,440
Non -major Governmental Funds 1,527,000 - 1,527,000
Golf Course Fund 550,000 - 550,000
Total $ 4,773,315 $ 1,908,125 $ 6,681,440
a. $2,696,315 was transferred from the General Fund to the Capital Improvement Fund to fund various
capital projects.
b. $1,908,125 was transferred to the Capital Improvement Fund from various non -major funds to
support capital project operations and expenses.
c. $1,527,000 was transferred from the General Fund to various non -major funds to support various
administrative operations and expenses within the City.
d. $550,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations.
Note 9 - 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 (CaIPERS). 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.
55
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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, 2022 are
summarized as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible
compensation
Required employee contribution rates
Required employer contribution rates
Contributions
Tier I
Tier II
Before On or After
November 1, 2012 November 1, 2012
2.5% @55 2% @60
5 years service
monthly for life
50 and up
2% to 2.5%
8.00%
12.200
5 years service
monthly for life
50 and up
2% to 2.5
7.00%
8.650%
PEPRA
On and after
January 1, 2013
2% @62
5 years service
monthly for life
52 and up
1% to 2%
6.75
7.590
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 $4,650,357 for the year ended
June 30, 2022.
56
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
As of June 30, 2022, the City reported a liability of $7,691,773 for its proportionate share of the collective net
pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020.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, 2020 and 2021
is as follows:
Proportion- June 30, 2020
Proportion- June 30, 2021
Change- Increase(Decrease)
0.13329 %
0.14222
0.00893 %
For the year ended June 30, 2022, the City recognized pension expense of $2,809,231.
At June 30, 2022, the City reported deferred outflows and deferred inflows of resources related to pensions as
follows:
Pension contributions subsequent to measurement date
Differences between expected and actual experience
Net difference between projected and actual earnings on
pension plan investments
Change in employer's proportion
Difference between the city's contribution and
proportionate share of contributions
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 4,650,357 $
862,550
- 6,714,510
184,893 723,690
508,760 189,091
$ 6,206,560 $ 7,627,291
The $4,650,357 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, 2023.
Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
Year Ended June 30,
2023
2024
2025
2026
Total
$ (1,296,832)
(1,380,466)
(1,538,246)
(1,855,544)
$ (6,071,088)
57
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2021 (the measurement date), the total pension liability was
determined by rolling forward the June 30, 2020 total pension liability. The total pension liability in the June 30,
2020 actuarial valuation was determined using the following actuarial methods and assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Discount Rate
Inflation
Projected Salary Increase
Mortality Rate Table
Post -retirement benefit increase
Discount Rate
Miscellaneous
June 30, 2020
June 30, 2021
Entry -Age Normal Cost Method
7.15
2.50
Varies by Entry Age and Service
Derived using CaIPERS' Membership Data for all Fund
Contract COLA up to 2.50% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies
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.
58
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
These geometric rates of return are summarized in the following table:
Strategic
Real Return
Real Return
Asset Class
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 %
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 $ 15,031,557 $ 7,691,773 $ 1,624,078
Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in the separately issued CalPERS financial
reports.
Note 10 - 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, 2022, there was one plan member.
There are no required contributions by plan members. During the 2021-2022 fiscal year the City made no
contributions to fund the Supplemental Pension Savings Plan.
59
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 11- 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' $143/month for the calendar year 2021 and $149/month for calendar year 2022,
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, 2021, the most recent valuation date, the following current and former employees were covered by
the benefit terms of the plan:
Active employees
Inactive employees or beneficiaries currently receiving benefits
Tota I
Contributions
94
24
118
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, 2022, the City's cash contributions to the plan including the
implied subsidy were $91,530. The City made no contributions to the CERBT trust.
.X
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Net OPEB Liability/(Asset)
Actuarial Assumptions —The net OPEB liability/(asset) in the June 30, 2021 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method
Actuarial Assumptions
Discount Rate
Inflation
Investment Rate of Return
Mortality
Healthcare Trend Rate
Entry -Age Normal Cost Method
5.50%
2.25%
5.50%
(1)
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, 2021 valuation were based on the results of an actuarial
experience study for the period.
Discount Rate
The discount rate used to measure the total OPEB liability was 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.
61
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Changes in Net OPEB Liability:
The changes in the net OPEB liability/(asset) for the Plan as of June 30, 2022 are as follows:
Balance at June 30, 2021
Changes in the year
Service cost
Interest
Differences between expected
and actual experience
Net investment income
Employer contributions
Benefit payments
Administrative expense
Net changes
Balance at June 30, 2022
Total OPEB
Liability
$ 1,815,611
87,732
102,210
(1,617)
(89,947)
98,378
$ 1,913,989
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
Plan Fiduciary
Net Position
$ 1,715,041
336,983
89,947
(89,947)
(624)
336,359
$ 2,051,400
Net OPEB
Liability/(Asset)
$ 100,570
87,732
102,210
(1,617)
(336,983)
(89,947)
624
(237,981)
$ (137,411)
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-percentage-point lower (4.50 percent) or 1-percentage-point
higher (6.50 percent) than the current discount rate:
Net OPEB Liability/(Asset)
1% Decrease
(4.50%)
$ 99,669
Discount Rate
(5.50%)
$ (137,411)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
1% Increase
(6.50 % )
$ (335,885)
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:
Net OPEB Liability/(Asset)
1% Decrease
(5.7% decreasing
to 2.8%)
$ (386,351)
Current Trend Rate
(6.7% decreasing
to 3.8%)
$ (137,411)
1% Increase
(7.7% decreasing
to 4.8%)
$ 170,042
62
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
For the year ended June 30, 2022, the City recognized OPEB expense of $74,613. At June 30, 2022, 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
$ 91,530 $ -
Changes in assumptions
35,344 34,886
Difference between expected and actual liability
123,098 1,451
Net difference between projected and investment earnings
- 182,928
Total
$ 249,972 $ 219,265
The $91,530 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, 2023. Other amounts reported as deferred outflows or deferred inflows of resources
related to OPEB will be recognized in as OPEB expense as follows:
Year Ended June 30,
2023
$ (21,643)
2024
(33,313)
2025
(30,203)
2026
(32,121)
2026
16,412
Thereafter
40,045
Total
$ (60,823)
Note 12 - 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 members, 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, 2022 was $10,137,888. 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.
63
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 13 - 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 124 California public entities and is organized under a joint powers' agreement pursuant to
California Government Code §6500 et seq. The purpose 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.
64
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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
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 $85,196,200. There is a
$10,000 deductible per occurrence except for non -emergency 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.
The coverage will not pay for loss or damage caused by "earthquake shock" until the amount of loss or damage
exceeds 5% per unit of coverage subject to a minimum deductible of $100,000 per occurrence.
Crime Insurance —The City of La Quinta purchases crime insurance coverage from Alliant Insurance Services. 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.
65
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 14 - 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, 2022, 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, 2022, 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,
2022.
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, 2022, the
City has committed $10,000,000.
Carryovers: These funds are items appropriated in a prior fiscal year that have yet to be spent. Carryovers
committed to Fiscal Year 2021-2022 totaled $1,209,100 at June 30, 2022.
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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, 2022 is $11,183,821.
Assigned to capital projects is comprised of carryover balances for capital projects. The capital project carryover
balances as of June 30, 2022 are $30,761,847. Accumulated resources related to the City's sales tax Measure G is
$15,355,043 as of June 30, 2022.
Deficit Fund Balance
At June 30, 2022, the following funds had deficit fund balances:
Major Capital Projects Funds
Capital Improvement $ (990,472)
Nonmajor Special Revenue Funds
Quimby (713,669)
Housing Grant (123,215)
Disaster Reovery (97,108)
Nonmajor Capital Projects Funds
Library Development (1,273,276)
Note 15 - 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, 2022, the Golf Course had a loss before transfers of
$108,068.
67
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 16 - Construction Commitments
Various construction projects were in progress at June 30, 2022. 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, 2022, with an estimated cost to complete.
Expenditures
Project Contract to date as of Remaining
Project Name Number Amount June 30, 2022 Commitments
Capital Improvement Fund
Dune Palms Bridge Improvement
LQ Village Complete Streets- Road Diet Project
La Quinta X Park
Civic Center Campus Lake/Irrigation Conversion
Silverrock Event Space
Washington Street at Fred Waring Dr
Eisenhower Retention Basin Landscape
Ave 53 Jefferson St Roundabout
Corporate Yard Admin Offices & Crew
Village Art Plaza Promenade & Cultural Campus
Avenue 50 Bridge Spanning The Evacuation Channel
LQ Skate Park Conver to Other Activity
Hwy 111 Corridor Area Plan Implementation
Citywide Catch Basin Modification
Washington St at Ave 50/Calle Tampico
Monroe Street Pavement Rehab (Ave 52)
SilverRock Retention Basin Soil Stabilization
Dune Palms Rd Pavement Rehab- Fred Waring to Miles
Fritz Burns Park Improvements
Citywide Striping Refresh
Note 17 - Reimbursement Agreements
111205 $ 18,176,565 $ (3,168,202) $ 15,008,363
151603
12,567,196
(11,955,639)
611,557
151609
4,686,639
(4,482,357)
204,282
201606
675,270
(152,530)
522,740
201608
7,304,503
(7,002,181)
302,322
201701
1,860,744
(1,739,359)
121,385
201704
750,000
(385,987)
364,013
201709
2,651,617
(259,000)
2,392,617
201805
411,013
(55,773)
355,240
201901
3,310,000
(60,087)
3,249,913
201902
16,349,000
(8,869)
16,340,131
201903
263,000
(315)
262,685
201905
2,250,000
(464,704)
1,785,296
201908
250,000
250,000
201923
195,400
(22,915)
172,485
202001
941,000
(473,877)
467,123
202007
437,250
(231,054)
206,196
202101
1,021,100
(1,580)
1,019,520
202102
350,000
(54,172)
295,828
202104
400,000
(30,770)
369,230
On September 9, 2014, the City entered into a sales tax sharing agreement. Under the terms of the agreement
the City shall make quarterly payments of 50 percent of any sales tax generated from the business in an amount
not 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 business opened in December 2014. As of June 30, 2022, the City made $360,345 in reimbursement
payments to the owner leaving an outstanding balance of $39,655.
M.
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 18 - Adoption of New Standard and Correction of Error
As of July 1, 2021, the City adopted GASB Statement No. 87, Leases. The implementation of the standard
established a single model for lease accounting based on the foundational principle that leases are financings of
the right to use an underlying asset. The Statement requires recognition of certain lease assets and liabilities for
leases that previously were classified as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract. The standard also requires lessors to recognize a
lease receivable and deferred inflow of resources. Beginning net position/fund balance was restated to
retroactively adopt the provisions of GASB Statement No. 87.
As part of the current year's reconciliation of Construction in Progress (CIP) balances, the City identified an entry
made in the previous year in which a CIP project was erroneously written off twice. Additionally, as part of the
current year reconciliation of depreciated assets, the City identified an asset deletion that was not previously
written off. In order to correct the entry, the Governmental Activities beginning net position has been restated.
As part of the current year's testing of the Private -Purpose Trust Fund — Successor Agency of the Former RDA
long term liabilities, the City identified a bond principal payment that was incorrectly recorded in the prior year.
In order to correct the entry, the funds beginning net position has been restated.
Net Position (Deficit)/Fund Balance at July 1, 2021, as previously reported
Recognition of right to use leased asset
Recognition of lease receivables
Recognition of lease liability
Recognition of deferred inflows of resources
Net write off of previously reported capital lease liability
Write off of deletions not previously written off
Recognition of CIP previously written off
Bond payment previously incorrectly recorded
Net Position (Deficit)/Fund Balance
Private -Purpose
Business -Type
Trust Fund
Activities
Successor
Governmental Enterprise Funds General
Agency of the
Activities Golf Course Fund
former RDA
$ 728,802,408 $ 43,086,664 $ 142,316,543 $ (171,262,948)
295,941 644,349 -
1,612,721 - 1,612,721
(295,941) (644,349) -
(1,612,721) (1,612,721)
104,866
(42,009)
4,277,302
(1,365,001)
$ 733,142,567 $ 43,086,664 $ 142,316,543 $ (172,627,949)
Note 19 - 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, 2012, 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.
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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).
Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City
Cash and investments with fiscal agent
See note 2 for required cash and investments disclosures.
Loans Receivable
Owner Participation Agreement — Torre Nissan
$ 18,190,868
26
$ 18,190,894
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, 2022 is $987,464.
70
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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, 2022, is $1,273,276.
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, 2021
Additions
Deductions
June 30, 2022
Deferred charge on refunding
$ 16,891,504
$ -
$ 1,124,995
$ 15,766,509
Long -Term Debt
A description of long-term debt outstanding of the Successor Agency as of June
30, 2022, follows:
Restated
Balance at
Balance
Due within
July 1, 2021
Additions
Repayments
June 30, 2022
One year
Tax allocation bonds
$ 186,295,000
$ -
$ 11,985,000
$174,310,000
$ 13,190,000
City loans
30,088,278
609,516
3,303,610
27,394,184
3,369,682
Unamortized premiums/
discounts
(1,413,349)
-
10,638
(1,402,711)
-
Total
$ 214,969,929
$ 609,516
$ 15,299,248
$ 200,301,473
$ 16,559,682
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.
71
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
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, 2022, is
$27,985,000 with an unamortized discount of $186,173.
The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency, in
whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026 or on
any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to be
redeemed, without premium, plus accrued interest to the redemption date.
Year Ending June 30,
Principal
Interest
Total
2023
$ 1,430,000
$ 1,079,255
$ 2,509,255
2024
1,465,000
1,035,479
2,500,479
2025
1,510,000
988,315
2,498,315
2026
1,565,000
937,680
2,502,680
2027
1,620,000
882,845
2,502,845
2028-2032
9,020,000
3,438,433
12,458,433
2033-2037
10,085,000
1,311,415
11,396,415
2038-2040
1,290,000
63,152
1,353,152
$ 27,985,000
$ 9,736,574
$ 37,721,574
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, 2022 were $146,325,000. The principal and interest on the bonds are
payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas.
72
City of La Quinta, California
Notes to Financial Statements
Future debt service requirements on these bonds are as follows:
Year Ending June 30, Principal Interest Total
2023
$ 11,760,000
2024
11,790,000
2025
11,845,000
2026
11,920,000
2027
12,060,000
2028-2032
63,635,000
2033-2035
23,315,000
$ 146,325,000
Loans from the City of La Quinta
June 30, 2022
$ 2,449,336 $ 14,209,336
2,405,638
14,195,638
2,338,010
14,183,010
2,227,650
14,147,650
2,072,532
14,132,532
6,794,780
70,429,780
709,725
24,024,725
$ 18,997,671 $ 165,322,671
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, 2022, principal and interest due to the City of La Quinta was
$27,394,184, 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 $203,044,245 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 $20,063,872 and the debt service obligation on the bonds was $15,285,741.
Insurance
The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at
June 30, 2022.
73
City of La Quinta, California
Notes to Financial Statements
June 30, 2022
Note 20 - 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, 2022 was $14,358,699.
Note 21- Subsequent Events
CaIPERS Investment Return
In July of 2022, CAPERS announced a net investment return of negative 6.1% for fiscal year ending 2021-22.
This, along with the change in the discount rate to 6.8% will negatively impact the GASB 68 Net Pension Liability
in future reporting periods. As the investment pool experienced gains in fiscal year 2021 resulting in a drastically
reduced liability in fiscal year 2022, the City expects the inverse to be true in fiscal year 2023 as all gains were
lost in fiscal year 2022. See Note 9 for further discussion on the Net Pension Liability and details as to the timing
of the actuarially driven reporting process.
Highway 111 Bridge Funding
In November 2020, Caltrans advised the City that the Highway Bridge Planning (HBP) Funding Program had been
oversubscribed for FY2020/21 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.
Due to higher engineer's estimates, the updated construction phase which includes construction, construction
engineering, and contingency is estimated at $25,370,901. The HBP Funding will ultimately contribute 88.53% or
up to $15,905,300 toward eligible (Construction Phase) costs which the City has agreed to advance. Staff and the
Financial Advisory Commission (FAC) recommend using a combination of Unassigned Reserves and Measure G
Reserves for this advance funding. The City anticipates these funds will be reimbursed within two to five fiscal
years.
On October 18, 2022, City Council approved an additional $4,501,803 in advanced funding from the City's
unassigned reserves. The bids received were higher than the current budget and funding made available to the
project. Staff recommends awarding the project and requesting additional funds from both the Caltrans
sponsored Highway Bridge (HBP) Funding Program and the Coachella Valley Association of Governments (CVAG).
74
Required Supplementary Information
June 30, 2022
City of La Quinta, California
This Page Left Intentionally Blank
Budgetary Fund Balance, July 1
Resources (Inflows)
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Extraordinary Item
Amounts available for appropriations
Charges to Appropriation (Outflows)
General government
Legislative
City manager
City attorney
Marketing
Human resources
City clerk
Fiscal services
Central services
The Hub customer services
Public safety
Police
Code compliance
Fire
Planning and development
Current planning
Public buildings
Building & safety
Administration
Community services
Community services admin
Wellness center
Recreation programs/special events
Park maintenance
City of La Quinta, California
Budgetary Comparison Schedule - General Fund
Year Ended June 30, 2022
Budget Amounts
nriainal Ginn)
Variance with
Actual Final Budget
Amounts Positive (Negative)
$ 142,316,543 $ 142,316,543 $ 142,316,543 $ -
45,957,000
58,047,000
63,010,284
4,963,284
2,252,000
3,572,000
4,521,449
949,449
8,251,100
8,099,422
8,636,752
537,330
876,010
876,010
1,623,951
747,941
545,000
545,000
(4,016,341)
(4,561,341)
294,000
609,000
657,589
48,589
629,100
629,100
562,810
(66,290)
-
-
487,612
487,612
201,120,753
214,694,075
217,800,649
3,106,574
302,200
302,200
251,153
51,047
1,076,000
1,096,000
796,578
299,422
696,000
796,000
370,189
425,811
1,325,900
1,540,900
1,389,343
151,557
376,000
411,000
269,015
141,985
625,200
667,200
586,861
80,339
1,444,100
1,444,100
1,241,161
202,939
3,155,850
5,441,850
4,776,763
665,087
986,000
1,066,000
834,387
231,613
17, 805,100
1,506,320
7,615,800
678,600
1,321,200
919,800
656,200
808,500
597,900
908,300
2,530,900
17, 805,100
1,559,320
7,646,300
748,600
1,378,700
1,094,800
746,200
888,500
677,900
1,078,300
2,656,900
16,831,255
1,312,923
7,542,121
559,340
1,374,563
960,672
816,867
661,768
612,277
640,734
2,445,674
973,845
246,397
104,179
189,260
4,137
134,128
(70,667)
226,732
65,623
437,566
211,226
See Note to Required Supplementary Information 77
Public works
Administration
Development services
Maintenance/operations - street
Engineering services
Capital outlay
Debt Service
Principal
Interest
Transfers out
Total charges to appropriations
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — General Fund
Year Ended June 30, 2022
Variance with
Budget Amounts
Actual
Final Budget
Original
Final
Amounts
Positive (Negative)
$ 739,900
$ 739,900
$ 535,839
$ 204,061
431,200
448,200
374,998
73,202
496,600
503,600
426,354
77,246
761,800
1,101,900
758,472
343,428
505,000
1,246,322
739,530
506,792
-
-
10,705
(10,705)
-
-
779
(779)
6,892,356
35,854,857
4,773,315
31,081,542
55,162,726
88,940,649
51,893,636
37,047,013
$ 145,958,027 $ 125,753,426 $ 165,907,013 $ 40,153,587
See Note to Required Supplementary Information 78
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Extraordinary item
Miscellaneous
Amounts available for appropriations
Charges to Appropriation (Outflows)
Planning and development
Community services
Total charges to appropriations
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Housing Authority
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 23,806,700
$ 23,806,700
$ 23,806,700
$ -
195,400
195,400
960,143
764,743
-
370,000
121,903
(248,097)
711,000
1,136,000
365,484
(770,516)
24,713,100
25,508,100
25,254,230
(253,870)
1,542,200
1,761,200
1,187,673
573,527
$ 22,920,900 $ 23,496,900 $ 24,015,857 $ 518,957
See Note to Required Supplementary Information 79
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
2022
Proportion of the net pension liability 0.1034% 0.1260% 0.1257% 0.1272%
0.1287% 0.13134%
0.13329%
0.14222%
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
$ 7,691,773
Covered payroll $ 5,421,945 $ 5,480,758 $ 5,569,002 $ 5,739,416
$ 6,064,875 $ 6,669,204 $
7,066,830
$ 6,238,425
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%
123.30%
Plan fiduciary net position as a
percentage of the total pension
liability 79.82% 78.40% 74.06% 73.31%
75.30% 77.73%
77.71%
90.60%
* - Fiscal year 2015 was the first year of implementation, therefore, only eight 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.
M
City of La Quinta, California
Schedule of Pension Plan Contributions — Miscellaneous Plan
Last 10 Years*
2015
2016
2017
2018
2019
2020
2021
2022
Actuarially determined contributions -
miscellaneous $ 728,073
$ 797,603
$ 949,231
$ 1,061,439
$ 1,284,275
$ 1,479,137
$ 2,581,158
$ 4,650,357
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)
(4,650,357)
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
$ 6,580,736
Contributions as a percentage of
covered payroll 13.28%
14.32%
16.54%
17.50%
19.26%
20.93%
41.38%
70.67%
* - Fiscal year 2015 was the first year of implementation, therefore, only eight 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.
81
City of La Quinta, California
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios
Last 10 Years*
2018
2019
2020
2021
2022
Total OPEB Liability
Service cost
$ 90,827
$ 93,438
$ 85,174
$ 88,219 $
87,732
Interest
93,346
100,177
93,071
97,183
102,210
Differences between expected and
actual experience
-
71,533
-
103,495
(1,617)
Changes of assumptions
(44,229)
(14,219)
44,464
Benefit payments
(91,822)
(86,570)
(98,584)
(98,490)
(89,947)
Net Change in Total OPEB Liability
92,351
134,349
65,442
234,871
98,378
Total OPEB liability - beginning
1,288,598
1,380,949
1,515,298
1,580,740
1,815,611
Total OPEB liability - ending
$ 1,380,949
$
1,515,298
$
1,580,740
$
1,815,611
$
1,913,989
Plan Fiduciary Net Position (FNP)
Employer contributions
$
$
1,609,970
$
98,584
$
98,490
$
89,947
Net investment income
(1,680)
106,805
88,052
336,983
Benefit payments
(86,570)
(98,584)
(98,490)
(89,947)
Administrative expense
(406)
(327)
(803)
(624)
Net Change in Plan Fiduciary Net Position
1,521,314
106,478
87,249
336,359
Plan Fiduciary Net Position- Beginning of Year
-
1,521,314
1,627,792
1,715,041
Plan Fiduciary Net Position- End of Year
$
$
1,521,314
$
1,627,792
$
1,715,041
$
2,051,400
Net OPEB liability/(asset) - End of Year
$ 1,380,949
$
(6,016)
$
(47,052)
$
100,570
$
(137,411)
Fiduciary Net Position as a percentage of
the Total OPEB Liability 0.0% 100.4% 103.0% 94.5% 107.2%
Covered -employee payroll 5,603,428 6,064,875 6,669,204 7,066,830 6,238,425
Net OPEB liability/(asset) as a percentage of
covered -employee payroll 24.6% -0.1% -0.7% 1.4% -2.2%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation, therefore only five years are shown.
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.
82
City of La Quinta, California
Schedule of OPEB Contributions
Last 10 Years*
2018
2019
2020
2021
2022
Actuarially determined contribution (ADC)
$ 201,513
$ 88,280
$ 90,229
$ 86,939
$ 101,376
Contributions in relation to the (ADC)
1,609,970
98,584
98,490
89,947
91,530
Contribution deficiency (excess)
(1,408,457)
(10,304)
(8,261)
(3,008)
9,846
Covered payroll
$ 6,064,875
$ 6,669,204
$ 7,066,830
$ 6,238,425
$ 6,580,736
Contributions as a percentage of payroll
26.5%
1.5%
1%
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 CAPERS Membership Data for all Funds
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation, therefore only five years are shown.
83
City of La Quinta, California
Note to Required Supplementary Information
June 30, 2022
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, 2022:
General Fund
Administration
Debt Service
Library and Museum
Transfers out
South Coast Air Quality
Planning and Development
Measure A
Public Works
Budget Actual Variance
$ 746,200 $ 816,867 $ (70,667)
- 11,340 (11,340)
- 58,295 (58,295)
42,500 47,298 (4,798)
- 45,917 (45,917)
84
Supplementary Information
June 30, 2022
City of La Quinta, California
This page intentionally left blank.
City of La Quinta, California
Other Governmental Funds
June 30, 2022
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.
Housing Grant Fund —To account for housing related grants as required by outside agencies for reporting
purposes.
Law Enforcement Fund —To account for law enforcement grants and restricted revenue for public safety.
87
City of La Quinta, California
Other Governmental Funds
June 30, 2022
Measure A Fund — In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund
a variety of highway improvements, local street and road maintenance, commuter assistance and specialized
highway transit projects. This fund is used to collect this tax and pursuant to the provision of Measure A, it is
restricted for local street and road expenditures.
Economic Development Fund —To account for the revenues and expenditures related to proceeds from sale of
City owned land and future economic development.
AB 1379 Fund —To account for the revenues and expenditures related to the annual business license
accessibility fee to be used for expenses enhancing accessibility requirements.
Transportation Uniform Mitigation Fee Fund —To account for the revenues and expenditures related to
Transportation Uniform Mitigation Fee monies.
Disaster Recovery Fund —To account for the use of one-time federal funding designed to deliver relief to
American workers and aid in economic recovery in the wake of COVID-19. This Act was passed by Congress in
2021, to provide Coronavirus fiscal recovery funds to state and local governments.
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.
M.
City of La Quinta, California
Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
State
Library and
Federal
Lighting and
Gas Tax
Museum
Assistance
SLESA
Landscaping
Assets
Pooled cash and investments
$ 1,711,782
$
8,902,260
$
2,127
$
378,119
$
683,255
Receivables
Accounts
28,122
-
-
-
-
Taxes
140,031
-
-
-
22,581
Accrued interest
1,085
5,641
1
240
433
Prepaid costs
-
433
-
-
-
Due from other governments
63,438
1,162,201
169,546
-
Total assets
$ 1,944,458
$
10,070,535
$
171,674
$
378,359
$
706,269
Liabilities and Fund Balances
Liabilities
Accounts payable
$ 7,998
$
94,694
$
-
$
956
$
77,352
Accrued liabilities
18,397
3,681
-
10,013
Unearned revenues
-
-
-
Due to other governments
Due to other funds
-
-
-
Total liabilities
26,395
98,375
-
956
87,365
Deferred Inflow of Resources
Unavailable revenues
-
-
169,546
-
-
Fund Balances
Nonspendable
Prepaid costs
433
Restricted for
Planning and development projects
-
-
Public safety
-
-
377,403
Community services
-
9,971,727
2,128
-
-
Public works
1,918,063
-
-
618,904
Capital projects
-
-
Unassigned
-
-
-
Total fund balances
1,918,063
9,972,160
2,128
377,403
618,904
Total liabilities and fund balances
$ 1,944,458
$
10,070,535
$
171,674
$
378,359
$
706,269
WO
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
La Quinta Public
Art in
South Coast
Quimby
Safety Officer
Public Places
Air Quality
AB 939
Assets
Pooled cash and investments
$
$
50,351
$
833,169
$ 44,097
$
848,578
Receivables
Accounts
-
-
-
-
Taxes
-
-
-
-
Accrued interest
32
528
28
538
Prepaid costs
-
-
-
-
Due from other governments
-
13,566
2,911
Total assets
$
$
50,383
$
833,697
$ 57,691
$
852,027
Liabilities and Fund Balances
Liabilities
Accounts payable
$
$
-
$
-
$ 20,707
$
39,451
Accrued liabilities
-
-
Unearned revenues
Due to other governments
Due to other funds
713,669
-
-
Total liabilities
713,669
20,707
39,451
Deferred Inflow of Resources
Unavailable revenues
-
-
-
Fund Balances
Nonspendable
Prepaid costs
-
-
Restricted for
Planning and development projects
-
36,984
812,576
Public safety
50,383
-
-
-
Community services
-
833,697
Public works
-
Capital projects
Unassigned
(713,669)
-
-
-
Total fund balances
(713,669)
50,383
833,697
36,984
812,576
Total liabilities and fund balances
$ -
$
50,383
$
833,697
$ 57,691
$
852,027
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
Housing
Law
Economic
Grant
Enforcement
Measure A
Development
AB 1379
Assets
Pooled cash and investments
$
$
247,096
$
4,222,941
$
3,146,698
$
67,304
Receivables
Accounts
-
-
267,566
-
Taxes
-
514,652
-
-
Accrued interest
157
2,676
1,994
43
Prepaid costs
96,157
-
-
-
-
Due from other governments
-
-
-
-
-
Total assets
$ 96,157
$
247,253
$
4,740,269
$
3,416,258
$
67,347
Liabilities and Fund Balances
Liabilities
Accounts payable
$
$
$
$
7,509
$
903
Accrued liabilities
-
-
Unearned revenues
Due to other governments
Due to other funds
219,372
10,924
-
-
Total liabilities
219,372
10,924
7,509
903
Deferred Inflow of Resources
Unavailable revenues
-
-
251,890
Fund Balances
Nonspendable
Prepaid costs
96,157
-
Restricted for
Planning and development projects
-
-
66,444
Public safety
236,329
-
-
Community services
-
3,156,859
Public works
4,740,269
-
Capital projects
-
Unassigned
(219,372)
-
-
-
Total fund balances
(123,215)
236,329
4,740,269
3,156,859
66,444
Total liabilities and fund balances
$ 96,157
$
247,253
$
4,740,269
$
3,416,258
$
67,347
91
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
Capital Projects Funds
Transportation
Maintenance
Uniform
Disaster
Facilities
Assets
Mitigation Fee
Recovery
DIF
Infrastructure
Civic Center
Pooled cash and investments
Receivables
$ 444,116
$
4,893,295
$
192,367
$
18,937
$ 1,148,601
Accounts
Taxes
-
-
-
-
-
Accrued interest
-
-
-
-
Prepaid costs
3,101
122
12
727
Due from other governments
-
-
-
-
Total assets
$ 444,116
$
4,896,396
$
192,489
$
18,949
$ 1,149,328
Liabilities and Fund Balances
Liabilities
Accounts payable
Accrued liabilities
$ 437,519
$
$
12,395
$
$ 22,798
Unearned revenues
Due to other governments
4,993,504
Due to other funds
Total liabilities
437,519
4,993,504
12,395
22,798
Deferred Inflow of Resources
Unavailable revenues
Fund Balances
Nonspendable
Prepaid costs
_
_
Restricted for
Planning and development projects
6,597
180,094
Public safety
-
-
Community services
Public works
Capital projects
18,949
1,126,530
Unassigned
-
(97,108)
-
-
Total fund balances
6,597
(97,108)
180,094
18,949
1,126,530
Total liabilities and fund balances
$ 444,116
$
4,896,396
$
192,489
$
18,949
$ 1,149,328
ON
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2022
Capital Projects Funds
Parks and
Library
Community
Transportation
Recreation
Development
Center
Street Facility
Assets
Pooled cash and investments
$ 4,593,409
$
680,496
$
$ 638,690
$
75,737
Receivables
Accounts
-
-
-
-
Taxes
-
-
-
-
Accrued interest
2,911
431
405
48
Prepaid costs
-
-
-
-
Due from other governments
-
-
-
-
Total assets
$ 4,596,320
$
680,927
$
$ 639,095
$
75,785
Liabilities and Fund Balances
Liabilities
Accounts payable
$ 92,851
$
6,659
$
$ 65,254
$
Accrued liabilities
-
-
-
Unearned revenues
Due to other governments
1,273,276
Due to other funds
-
-
-
-
Total liabilities
92,851
6,659
1,273,276
65,254
Deferred Inflow of Resources
Unavailable revenues
-
-
-
-
Fund Balances
Nonspendable
Prepaid costs
Restricted for
Planning and development projects
Public safety
Community services
-
Public works
-
-
-
75,785
Capital projects
4,503,469
674,268
573,841
-
Unassigned
-
-
(1,273,276)
-
-
Total fund balances
4,503,469
674,268
(1,273,276)
573,841
75,785
Total liabilities and fund balances
$ 4,596,320
$
680,927
$
$ 639,095
$
75,785
93
City of La Quinta, California
Combining Balance Sheet — Nonmajor Governmental Funds
June 30, 2022
Capital Projects Funds
Fund
Total
Financing
Governmental
Park Facility
Fire Facility
Authority
Funds
Assets
Pooled cash and investments
$ 5,894
$
409,045
$
$
34,238,364
Receivables
Accounts
-
-
295,688
Taxes
-
-
677,264
Accrued interest
4
259
21,416
Prepaid costs
-
-
96,590
Due from other governments
-
-
1,411,662
Total assets
$ 5,898
$
409,304
$
$
36,740,984
Liabilities and Fund Balances
Liabilities
Accounts payable
$ -
$
-
$
$
887,046
Accrued liabilities
-
32,091
Unearned revenues
-
4,993,504
Due to other governments
-
1,273,276
Due to other funds
-
943,965
Total liabilities
-
8,129,882
Deferred Inflow of Resources
Unavailable revenues
-
421,436
Fund Balances
Nonspendable
Prepaid costs
-
96,590
Restricted for
Planning and development projects
-
-
1,102,695
Public safety
-
409,304
1,073,419
Community services
5,898
-
-
13,970,309
Public works
-
7,353,021
Capital projects
-
6,897,057
Unassigned
-
-
(2,303,425)
Total fund balances
5,898
409,304
-
28,189,666
Total liabilities and fund balances
$ 5,898
$
409,304
$
$
36,740,984
94
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2022
Revenues
Taxes
Assessments
Intergovernmental
Investment income
Net decrease in fair value of
investments
Developer participation
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
over(under)Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
State
Library and
Federal
Lighting and
Gas Tax
Museum
Assistance
SLESA
Landscaping
-
-
-
-
969,257
1,788,042
3,103,537
1,530
161,285
-
12,459
70,896
(101)
2,717
3,001
(50,768)
(275,476)
(2,857)
(11,237)
(20,209)
-
1,988
-
-
1,749,733
2,900,945
(1,428)
152,765
952,049
40,837
-
1,859,934
-
-
1,002,825
-
1,530
2,108,145
1,002,825
1,859,934
1,530
40,837
2,108,145
746,908
1,041,011
(2,958)
111,928
(1,156,096)
(292,614) (58,295)
1,285,000
1,463,769 8,989,444 5,086 265,475 490,000
$ 1,918,063 $ 9,972,160 $ 2,128 $ 377,403 $ 618,904
95
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds
La Quinta Public
Art in
South Coast
Quimby
Safety Officer
Public Places
Air Quality
AB 939
Revenues
Taxes
$
$
$
$
$ 65,870
Assessments
-
Intergovernmental
52,791
69,686
Investment income
405
6,657
327
6,616
Net decrease in fair value of
investments
(1,591)
(25,798)
(1,360)
(26,507)
Developer participation
158,972
Miscellaneous
-
-
-
Total revenues
(1,186)
139,831
51,758
115,665
Expenditures
Current
General government
-
-
-
Public safety
-
-
Planning and development
-
47,298
109,742
Community services
54,817
-
-
Public works
-
Capital outlay
53,253
Debt service
Interest and fiscal charges
-
-
-
Total expenditures
108,070
47,298
109,742
Excess (Deficiency) of Revenues
over (under) Expenditures
(1,186)
31,761
4,460
5,923
Other Financing Sources (Uses)
Transfers in
2,000
50,000
-
-
Transfers out
(713,669)
-
(12,678)
Total other financing sources (uses) (713,669)
2,000
37,322
-
-
Net Change in Fund Balances
(713,669)
814
69,083
4,460
5,923
Fund Balances, Beginning of Year
49,569
764,614
32,524
806,653
Fund Balances, End of Year
$ (713,669)
$ 50,383
$ 833,697
$ 36,984
$ 812,576
W.
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds
Housing
Law
Economic
Grant
Enforcement
Measure A
Development
AB 1379
Revenues
Taxes
$
$
$ 2,031,006
$
$
Assessments
-
-
Intergovernmental
34,827
-
18,705
Investment income
2,320
30,150
273,103
506
Net decrease in fair value of
investments
(9,805)
(118,901)
(99,068)
(1,990)
Developer participation
-
Miscellaneous
-
40,117
-
-
Total revenues
27,342
1,982,372
174,035
17,221
Expenditures
Current
General government
-
Public safety
14,646
-
-
Planning and development
123,215
-
16,843
1,871
Community services
-
-
-
-
Public works
45,917
Capital outlay
-
Debt service
Interest and fiscal charges
-
-
-
-
-
Total expenditures
123,215
14,646
45,917
16,843
1,871
Excess (Deficiency) of Revenues
over (under) Expenditures
(123,215)
12,696
1,936,455
157,192
15,350
Other Financing Sources (Uses)
Transfers in
-
-
-
-
Transfers out
(195,415)
(395,454)
(50,000)
Total other financing sources
(uses)
(195,415)
(395,454)
(50,000)
-
Net Change in Fund Balances
(123,215)
(182,719)
1,541,001
107,192
15,350
Fund Balances, Beginning of Year
419,048
3,199,268
3,049,667
51,094
Fund Balances, End of Year
$ (123,215)
$ 236,329
$ 4,740,269
$ 3,156,859
$ 66,444
97
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2022
Revenues
Taxes
Assessments
Intergovernmental
Investment income
Net decrease in fair value of
investments
Developer participation
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Planning and development
Community services
Public works
Capital outlay
Debt service
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of Revenues
over (under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
Transportation
Uniform Disaster
Mitigation Fee Recovery
- 11,120
(860) (108,228)
Capital Projects Funds
Maintenance
Facilities
DIF Infrastructure Civic Center
1,035 156 7,028
(4,708) (606) (30,211)
(860) (97,108) 133,079 (450) 627,910
7,457 47,015 19,399 498,620
$ 6,597 $ (97,108) $ 180,094 $ 18,949 $ 1,126,530
OR
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2022
Capital Projects Funds
Parks and
Library
Community
Transportation
Recreation
Development
Center Street Facility
Revenues
Taxes
$
$
$
$ $
Assessments
Intergovernmental
-
Investment income
29,072
3,596
192
3,732 575
Net decrease in fair value of
investments
(123,443)
(15,051)
-
(16,385) (2,092)
Developer participation
2,731,351
1,032,032
196,456
352,108 34,015
Miscellaneous
-
-
-
- -
Total revenues
2,636,980
1,020,577
196,648
339,455 32,498
Expenditures
Current
General government
Public safety
Planning and development
Community services
-
Public works
400,000
Capital outlay
-
-
Debt service
Interest and fiscal charges
11,135
Total expenditures
400,000
11,135
-
Excess (Deficiency) of Revenues
over (under) Expenditures
2,236,980
1,020,577
185,513
339,455 32,498
Other Financing Sources (Uses)
Transfers in
-
-
-
- -
Transfers out
Total other financing sources (uses) -
-
-
- -
Net Change in Fund Balances
2,236,980
1,020,577
185,513
339,455 32,498
Fund Balances, Beginning of Year
2,266,489
(346,309)
(1,458,789)
234,386 43,287
Fund Balances, End of Year
$ 4,503,469
$ 674,268
$ (1,273,276)
$ 573,841 $ 75,785
City of La Quinta, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Governmental Funds
Year Ended June 30, 2022
Debt Service
Capital Projects Funds
Fund
Total
Financing
Governmental
Park Facility
Fire Facility
Authority
Funds
Revenues
Taxes
$ $
$
$ 2,096,876
Assessments
969,257
Intergovernmental
5,230,403
Investment income
50
2,581
1,100
469,293
Net decrease in fair value of
investments
(188)
(10,948)
-
(958,287)
Developer participation
40
220,411
5,513,230
Miscellaneous
-
-
-
42,105
Total revenues
(98)
212,044
1,100
13,362,877
Expenditures
Current
General government
-
-
1,100
1,100
Public safety
-
55,483
Planning and development
298,969
Community services
1,914,751
Public works
3,558,417
Capital outlay
53,253
Debt service
Interest and fiscal charges
-
11,135
Total expenditures
-
-
1,100
5,893,108
Excess (Deficiency) of Revenues
over (under) Expenditures
(98)
212,044
-
7,469,769
Other Financing Sources (Uses)
Transfers in
-
-
1,527,000
Transfers out
(1,908,125)
Total other financing sources (uses)
-
-
(381,125)
Net Change in Fund Balances
(98)
212,044
7,088,644
Fund Balances, Beginning of Year
5,996
197,260
21,101,022
Fund Balances, End of Year
$ 5,898 $
409,304 $
$ 28,189,666
100
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Transfers in
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public works
Transfers out
Total charges to
appropriations
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
State Gas Tax
Year Ended June 30, 2022
Budget Amounts
Actual
Original
Final
Amounts
$ 1,463,769
$ 1,463,769
$ 1,463,769
1,766,880
1,766,880
1,788,042
9,000
9,000
(38,309)
190,000
190,000
190,000
3,429,649
3,429,649
3,403,502
1,226,400
1,276,400
1,002,825
781,100
1,708,283
482,614
2,007,500
2,984,683
1,485,439
Variance with
Final Budget
Positive
(Negative)
►,
J
21,162
(47,309)
(26,147)
273,575
1,225,669
1,499,244
$ 1,422,149 $ 444,966 $ 1,918,063 $ 1,473,097
101
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Miscellaneous revenue
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Community services
Capital outlay
Transfers out
Total charges to
appropriations
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Library and Museum
Year Ended June 30, 2022
Budget Amounts
Original Final
$ 8,989,444 $ 8,989,444
2,755,200 2,755,200
90,000 90,000
5,500 6,700
11, 840,144 11, 841, 344
4,301,510 4,727,500
5,000 5,000
4,306,510 4,732,500
$ 7,533,634 $ 7,108,844
Actual
Amounts
$ 8,989,444
3,103,537
(204,580)
1,988
11,890,389
1,859,934
58,295
1,918,229
$ 9,972,160
Variance with
Final Budget
Positive
(Negative)
F
348,337
(294,580)
(4,712)
49,045
2,867,566
5,000
(58,295)
2,814,271
$ 2,863,316
102
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Federal Assistance
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 5,086
$ 5,086
$ 5,086
$ -
Resources (Inflows)
Intergovernmental
151,000
151,000
1,530
(149,470)
Use of money and property
-
-
(2,958)
(2,958)
Amounts available for
appropriations
156,086
156,086
3,658
(152,428)
Charges to Appropriation (Outflows)
Public works
20,000
20,000
1,530
18,470
Transfers out
128,350
187,377
-
187,377
Total charges to
appropriations
148,350
207,377
1,530
205,847
Budgetary Fund Balance, June 30
$ 7,736
$ (51,291)
$ 2,128
$ 53,419
103
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public safety
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
SLESA
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 265,475
$ 265,475
$ 265,475
$ -
100,000
100,000
161,285
61,285
1,000
1,000
(8,520)
(9,520)
366,475
366,475
418,240
51,765
100,000
100,000
40,837
59,163
$ 266,475
$ 266,475
$ 377,403
$ 110,928
104
Budgetary Fund Balance, July 1
Resources (Inflows)
Assessments
Use of money and property
Transfers in
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Public works
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Lighting and Landscaping
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 490,000 $ 490,000 $ 490,000 $ -
981,700
8,000
1,285,000
2,764,700
2,257,400
981,700
8,000
1,285,000
2,764,700
2,257,400
969,257 (12,443)
(17,208) (25,208)
1,285,000 -
2,727,049 (37,651)
2,108,145 149,255
$ 507,300 $ 507,300 $ 618,904 $ 111,604
105
Budgetary Fund Balance, July 1
Charges to Appropriation (Outflows)
Transfers out
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Quimby
Year Ended June 30, 2022
Budget Amounts
Original Final
1,180,635
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
713,669 466,966
$ - $ (1,180,635) $ (713,669) $ 466,966
106
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
La Quinta Public Safety Officer
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 49,569 $
49,569
$ 49,569
$ -
Resources (Inflows)
Use of money and property
600
600
(1,186)
(1,786)
Transfers in
2,000
2,000
2,000
-
Amounts available for
appropriations
52,169
52,169
50,383
(1,786)
Budgetary Fund Balance, June 30
$ 52,169 $
52,169
$ 50,383
$ (1,786)
107
City of La Quinta, California
Budgetary Comparison Schedule - Special Revenue Fund
Art in Public Places
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 764,614
$ 764,614
$ 764,614
$ -
Resources (Inflows)
Use of money and property
5,000
5,000
(19,141)
(24,141)
Developer participation
75,000
75,000
158,972
83,972
Transfer In
50,000
50,000
50,000
-
Amounts available for
appropriations
894,614
894,614
954,445
59,831
Charges to Appropriation (Outflows)
Community services
77,000
77,000
54,817
22,183
Capital outlay
50,000
90,000
53,253
36,747
Transfers out
-
615,700
12,678
603,022
Total charges to
appropriations
127,000
782,700
120,748
661,952
Budgetary Fund Balance, June 30
$ 767,614
$ 111,914
$ 833,697
$ 721,783
108
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
South Coast Air Quality
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 32,524 $
32,524
$ 32,524
$ -
Resources (Inflows)
Intergovernmental
52,000
52,000
52,791
791
Use of money and property
800
800
(1,033)
(1,833)
Amounts available for
appropriations
85,324
85,324
84,282
(1,042)
Charges to Appropriation (Outflows)
Planning and development
42,500
42,500
47,298
(4,798)
Budgetary Fund Balance, June 30
$ 42,824 $
42,824
$ 36,984
$ (5,840)
109
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
AB 939
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 806,653
$ 806,653
$ 806,653
$ -
Resources (InFlows)
Taxes
65,000
65,000
65,870
870
Intergovernmental
-
55,120
69,686
14,566
Use of money and property
5,000
5,000
(19,891)
(24,891)
Amounts available for
appropriations
876,653
931,773
922,318
(9,455)
Charges to Appropriation (Outflows)
Planning and development
150,000
205,120
109,742
95,378
Budgetary Fund Balance, June 30
$ 726,653
$ 726,653
$ 812,576
$ 85,923
110
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Housing Grants
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (33,108) $
(33,108)
$ -
$ 33,108
Amounts available for
appropriations
(33,108)
(33,108)
-
33,108
Charges to Appropriation (Outflows)
Planning and development
-
160,000
123,215
Total Charges to Appropriations
-
160,000
123,215
-
Budgetary Fund Balance, June 30
$ (33,108) $
(193,108)
$ (123,215)
$ 33,108
111
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Law Enforcement
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1 $
419,048
$ 419,048
$ 419,048
$ -
Resources (Inflows)
Use of money and property
5,000
5,000
(7,485)
(12,485)
Miscellaneous revenue
17,000
17,000
34,827
17,827
Amounts available for
appropriations
441,048
441,048
446,390
5,342
Charges to Appropriation (Outflows)
Public safety
17,000
17,000
14,646
2,354
Transfers out
-
286,397
195,415
90,982
Total Charges to Appropriations
17,000
303,397
210,061
93,336
Budgetary Fund Balance, June 30 $
424,048
$ 137,651
$ 236,329
$ 98,678
112
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Measure A
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 3,199,268
$ 3,199,268
$ 3,199,268
$ -
Resources (Inflows)
Taxes
1,552,000
1,552,000
2,031,006
479,006
Use of money and property
15,000
15,000
(88,751)
(103,751)
Miscellaneous revenue
-
-
40,117
40,117
Amounts available for
appropriations
4,766,268
4,766,268
5,181,640
415,372
Charges to Appropriation (OutFlows)
Public works
-
-
45,917
(45,917)
Transfers out
1,220,500
2,614,501
395,454
2,219,047
Total charges to
appropriations
1,220,500
2,614,501
441,371
2,173,130
Budgetary Fund Balance, June 30
$ 3,545,768
$ 2,151,767
$ 4,740,269
$ 2,588,502
113
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Economic Development
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 3,049,667
$ 3,049,667
$ 3,049,667
$ -
Resources (Inflows)
Use of money and property
30,000
30,000
174,035
144,035
Amounts available for
appropriations
3,079,667
3,079,667
3,223,702
144,035
Charges to Appropriation (Outflows)
Planning and development
21,500
21,500
16,843
4,657
Transfers out
-
50,000
50,000
-
Total Charges to Appropriations
21,500
71,500
66,843
4,657
Budgetary Fund Balance, June 30
$ 3,058,167
$ 3,058,167
$ 3,156,859
$ 98,692
114
Budgetary Fund Balance, July 1
Resources (Inflows)
Intergovernmental
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Planning and development
Budgetary Fund Balance, June 30
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
AB 1379
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 51,094 $ 51,094 $ 51,094 $ -
19,000 19,000 18,705 (295)
200 200 (1,484) (1,684)
70,294
5,600
$ 64,694 $
70,294
5,600
68,315
1,871
64,694 $ 66,444 $
(1,979)
3,729
1,750
115
City of La Quinta, California
Budgetary Comparison Schedule — Special Revenue Fund
Disaster Recovery
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ - $ -
$
Resources (Inflows)
Use of money and property
- -
(97,108)
(97,108)
Miscellaneous revenue
- 4,993,504
-
(4,993,504)
Amounts available for
appropriations
- 4,993,504
(97,108)
(5,090,612)
Budgetary Fund Balance, June 30
$ - $ 4,993,504
$ (97,108)
$ (5,090,612)
116
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Capital Improvement
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,377,164)
$ (1,377,164)
$ (1,377,164)
$ -
Resources (Inflows)
Intergovernmental
-
21,995,493
2,121,980
(19,873,513)
Developer participation
-
1,081,700
70,916
(1,010,784)
Transfers in
9,894,806
45,461,728
4,604,440
(40,857,288)
Amounts available for
appropriations
8,517,642
67,161,757
5,420,172
(61,741,585)
Charges to Appropriation (Outflows)
Planning and development
-
2,622,885
35,981
2,586,904
Capital outlay
9,894,806
65,253,209
6,374,663
58,878,546
Total charges to
appropriations
9,894,806
67,876,094
6,410,644
61,465,450
Budgetary Fund Balance, June 30
$ (1,377,164)
$ (714,337)
$ (990,472)
$ (276,135)
117
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Developer participation
Amounts available for
appropriations
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Maintenance Facilities DIF Fund
Year Ended June 30, 2022
Budget Amounts
Original Final
$ 47,015 $ 47,015
1,000 1,000
25,000 135,000
73,015 183,015
Actual
Amounts
$ 47,015
Variance with
Final Budget
Positive
(Negative)
►,
J
(3,673)
(4,673)
136,752
1,752
180,094
(2,921)
Budgetary Fund Balance, June 30 $ - $ 183,015 $ 180,094 $ (2,921)
118
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Amounts available for
appropriations
Charges to Appropriation (Outflows)
Transfers out
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Infrastructure
Year Ended June 30, 2022
Budget Amounts Actual
Original Final Amounts
$ 19,399 $ 19,399 $ 19,399
100 100 (450)
19,499 19,499 18,949
- 22,618 -
Variance with
Final Budget
Positive
(Negative)
J
(550)
(550)
22,618
Budgetary Fund Balance, June 30 $ 19,499 $ (3,119) $ 18,949 $ 22,068
119
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Civic Center
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 498,620
$ 498,620
$ 498,620
$ -
Resources (Inflows)
Use of money and property
2,000
2,000
(23,183)
(25,183)
Developer participation
150,000
600,000
651,093
51,093
Amounts available for
appropriations
650,620
1,100,620
1,126,530
25,910
Budgetary Fund Balance, June 30
$ 650,620
$ 1,100,620
$ 1,126,530
$ 25,910
120
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Transportation
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,266,489
$ 2,266,489
$ 2,266,489
$ -
Resources (Inflows)
Use of money and property
28,000
28,000
(94,371)
(122,371)
Developer participation
400,000
2,700,000
2,731,351
31,351
Amounts available for
appropriations
2,694,489
4,994,489
4,903,469
(91,020)
Charges to Appropriation (Outflows)
Public works
400,000
400,000
400,000
-
Transfers out
204,500
1,416,757
-
1,416,757
Total charges to
appropriations
604,500
1,816,757
400,000
1,416,757
Budgetary Fund Balance, June 30
$ 2,089,989
$ 3,177,732
$ 4,503,469
$ 1,325,737
121
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Parks and Recreation
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (346,309)
$ (346,309)
$ (346,309)
$ -
Resources (Inflows)
Use of money and property
1,000
1,000
(11,455)
(12,455)
Developer participation
350,000
850,000
1,032,032
182,032
Amounts available for
appropriations
4,691
504,691
674,268
169,577
Budgetary Fund Balance, June 30
$ 4,691
$ 504,691
$ 674,268
$ 169,577
122
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Library Development
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ (1,458,789)
$ (1,458,789)
$ (1,458,789)
$ -
Resources (Inflows)
Use of money and property
-
-
192
192
Developer participation
50,000
175,000
196,456
21,456
Amounts available for
appropriations
(1,408,789)
(1,283,789)
(1,262,141)
21,648
Charges to Appropriation (Outflows)
Debt service
Interest and fiscal charges
30,000
30,000
11,135
18,865
Budgetary Fund Balance, June 30
$ (1,438,789)
$ (1,313,789)
$ (1,273,276)
$ 40,513
123
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Community Center
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual Positive
Original
Final
Amounts (Negative)
Budgetary Fund Balance, July 1
$ 234,386
$ 234,386
$ 234,386 $ -
Resources (Inflows)
Use of money and property
2,000
2,000
(12,653) (14,653)
Developer participation
70,000
370,000
352,108 (17,892)
Amounts available for
appropriations
306,386
606,386
573,841 (32,545)
Charges to Appropriation (Outflows)
Transfers out
125,000
1251000
- 1251000
Budgetary Fund Balance, June 30
$ 181,386
$ 481,386
$ 573,841 $ 92,455
124
Budgetary Fund Balance, July 1
Resources (Inflows)
Use of money and property
Developer participation
Amounts available for
appropriations
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Street Facility
Year Ended June 30, 2022
Budget Amounts
Original Final
$ 43,287 $ 43,287
Actual
Amounts
$ 43,287
- (1,517)
- - 34,015
43,287 43,287 75,785
Variance with
Final Budget
Positive
(Negative)
►,
J
(1,517)
34,015
32,498
Budgetary Fund Balance, June 30 $ 43,287 $ 43,287 $ 75,785 $ 32,498
125
Budgetary Fund Balance, July 1 $
Resources (Inflows)
Use of money and property
Developer participation
Amounts available for
appropriations
Budgetary Fund Balance, June 30 $
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Park Facility
Year Ended June 30, 2022
Budget Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
5,996 $ 5,996 $ 5,996 $ -
- - (138) (138)
- - 40 40
5,996 5,996 5,898 (98)
5,996 $ 5,996 $ 5,898 $ (98)
126
City of La Quinta, California
Budgetary Comparison Schedule — Capital Projects Fund
Fire Facility
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 197,260
$ 197,260
$ 197,260
$ -
Resources (Inflows)
Use of money and property
1,000
1,000
(8,367)
(9,367)
Developer participation
65,000
190,000
220,411
30,411
Amounts available for
appropriations
263,260
388,260
409,304
21,044
Budgetary Fund Balance, June 30
$ 263,260
$ 388,260
$ 409,304
$ 21,044
127
City of La Quinta, California
Budgetary Comparison Schedule — Debt Service Fund
Financing Authority
Year Ended June 30, 2022
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ - $ -
$ -
$ -
Resources (Inflows)
Use of money and property
1,100 1,100
1,100
-
Amounts available for
appropriations
1,100 1,100
1,100
-
Charges to Appropriation (Outflows)
General government
1,100 1,100
1,100
-
Budgetary Fund Balance, June 30
$ - $ -
$ -
$ -
128
City of La Quinta, California
Internal Service Funds
Year Ended June 30, 2022
Internal service funds are used to account for activities involved in rendering services to departments within the
City. Costs of materials and services used are accumulated in this fund and charged to the user departments as
such goods are delivered or services rendered.
The City of La Quinta has the following Internal Service Funds:
Equipment Replacement Fund — To account for the operational maintenance and ultimate replacement of City
owned and operated vehicles and equipment.
Information Technology Fund — To account for the purchase and replacement of information systems.
Park Equipment and Facilities Fund — To account for the purchase and replacement of City owned and operated
park equipment and facilities.
Insurance Fund —To account for the City's insurance coverage.
129
City of La Quinta, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Governmental Activities - Internal Service Funds
Park
Equipment Information Equipment
Assets
Current
Pooled cash and investments
$ 3,637,791
$ 2,301,010
$ 3,763,789 $
430,543
$ 10,133,133
Receivables
Accrued interest
2,224
1,458
2,385
273
6,340
Prepaid costs
-
104,934
-
124,588
229,522
Total current assets
3,640,015
2,407,402
3,766,174
555,404
10,368,995
Noncurrent
Capital assets - net
1,470,432
172,369
11,721,056
-
13,363,857
Right to use leased assets,
net of accumulated amortization
130,157
-
-
130,157
Total noncurrent assets
1,600,589
172,369
11,721,056
-
13,494,014
Total assets
5,240,604
2,579,771
15,487,230
555,404
23,863,009
Liabilities
Current
Accounts payable
63,638
97,739
2,042
1,736
165,155
Accrued liabilities
-
1,416
-
-
1,416
Accrued interest
170
-
170
Current portion of capital leases
98,772
-
-
-
98,772
Total current liabilities
162,580
99,155
2,042
1,736
265,513
Noncurrent
Long-term portion of capital leases
36,462
-
-
-
36,462
Total liabilities
199,042
99,155
2,042
1,736
301,975
Net Position
Net investment in capital assets
1,465,355
172,369
11,721,056
-
13,358,780
Unrestricted
3,576,207
2,308,247
3,764,132
553,668
10,202,254
Total net position
5,041,562
2,480,616
15,485,188
553,668
23,561,034
Total liabilities and net position
$ 5,240,604
$ 2,579,771
$ 15,487,230 $
555,404
$ 23,863,009
130
City of La Quinta, California
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2022
Governmental Activities - Internal Service Funds
Park
Equipment
Information
Equipment and
Replacement
Technology
Facilities
Insurance
Totals
Operating Revenues
Sales and service charges
$ 1,191,750
$ 1,782,151
$ 350,000
$ 1,010,000 $
4,333,901
Insurance recoveries
10,561
-
72,076
-
82,637
Total operating revenues
1,202,311
1,782,151
422,076
1,010,000
4,416,538
Operating Expenses
Administration and general
103,353
40,283
-
152,715
296,351
Fuel and oil
122,100
-
-
122,100
Maintenance and parts
123,558
297
-
123,855
Contract services
-
536,835
139,144
-
675,979
Software and supplies
-
761,436
-
768,900
1,530,336
Depreciation and
amortization expense
407,676
84,134
498,236
-
990,046
Total operating expenses
756,687
1,422,985
637,380
921,615
3,738,667
Operating Income (Loss)
445,624
359,166
(215,304)
88,385
677,871
Nonoperating Revenue (Expenses)
Investment income
30,274
17,116
30,776
1,465
79,631
Net decrease in fair value of
investments
(115,548)
(68,589)
(118,747)
(12,970)
(315,854)
Miscellaneous revenue
187,320
187,320
Gain on disposal of capital assets
4,203
4,203
Interest expense
(2,982)
-
(2,982)
Total nonoperating revenues
103,267
(51,473)
(87,971)
(11,505)
(47,682)
Changes in Net Position
548,891
307,693
(303,275)
76,880
630,189
Net Position
Beginning of Year, as restated
4,492,671
2,172,923
15,788,463
476,788
22,930,845
End of Year
$ 5,041,562
$ 2,480,616
$ 15,485,188
$ 553,668 $
23,561,034
131
City of La Quinta, California
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2022
Governmental Activities - Internal Service Funds
Park
Equipment
Information
Equipment
Replacement
Technology
and Facilities
Insurance
Totals
Operating Activities
Cash received from interfund services provided
$ 1,191,750
$ 1,782,151
$ 350,000
$ 1,016,096
$ 4,339,997
Cash received from insurance recoveries
10,561
-
72,076
-
82,637
Cash paid to suppliers for goods and services
(345,638)
(1,263,952)
(139,417)
(936,416)
(2,685,423)
Net Cash from Operating Activities
856,673
518,199
282,659
79,680
1,737,211
Capital and Related Financing Activities
Cash paid for lease liability- principal portion
(122,589)
-
-
-
(122,589)
Cash paid for lease liability- interest portion
(2,812)
(2,812)
Capital contributions
187,320
187,320
Acquisition and construction of capital assets
(837,570)
(111,340)
(948,910)
Proceeds from sales of capital assets
4,203
4,203
Net Cash from (used for) Capital and
Related Financing Activities
(771,448)
(111,340)
(882,788)
Investing Activities
Investment loss
(86,041)
(52,194)
(88,882)
(11,635)
(238,752)
Net Change in Cash and Cash Equivalents
(816)
466,005
82,437
68,045
615,671
Cash and Cash Equivalents, Beginning of Year
3,638,607
1,835,005
3,681,352
362,498
9,517,462
Cash and Cash Equivalents, End of Year $
3,637,791
$ 2,301,010
$ 3,763,789 $
430,543
$ 10,133,133
Reconciliation of operating income to net cash
from (used for) operating activities
Operating income (loss) $
445,624
$ 359,166
$ (215,304) $
88,385
$ 677,871
Adjustments to reconcile operating income (loss) to
net cash from (used for) operating activities
Depreciation
407,676
84,134
498,236
-
990,046
Changesin
Prepaid costs
-
8,757
-
(16,356)
(7,599)
Accounts receivable
-
-
-
6,096
6,096
Accounts payable
3,373
65,959
(273)
1,554
70,613
Accrued liabilities
-
183
-
1
184
Net Cash from Operating Activities $
856,673
$ 518,199
$ 282,659 $
79,680
$ 1,737,211
132
Other Information
June 30, 2022
City of La Quinta, California
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City of La Quinta, California
Project Status
Year Ended June 30, 2022
Project Status: Highway 111 Bridge Funding
In November 2020, Caltrans advised the City that the Highway Bridge Planning (HBP) Funding Program had been
oversubscribed for FY2020/21 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 Financial Advisory
Commission (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.
As of June 30, 2022, advances and reimbursements related to the project are as follows:
Council Approved
Allocated Amounts
Measure G Unassigned Reimbursements
Year Ending June 30, Reserves Reserves Received
2022 $ 7,468,061 $ 7,468,061
135
Statistical Section
June 30, 2022
City of La Quinta, California
City of La Quinta
Statistical Section
Year Ended June 30, 2022
This part of the City of La Quinta's annual 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
Financial Trends
Page
These schedules contain trend information to help the reader understand how
the City's financial performance and well-being have changed over time. 133
Revenue Capacity
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property taxes. 145
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. 155
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. 162
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. 165
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive
financial reports for the relevant year.
137
City of La Quinta
Net Position
by Component (Table 1)
Year Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016 2017
Governmental Activities
Net investment in capital assets
$ 529,681,342
$ 527,614,666
$ 523,495,389
$ 516,499,682 $ 517,039,487
Restricted
49,598,397
53,669,248
62,472,221
61,148,731 38,824,860
Unrestricted
83,399,745
83,907,046
74,362,189
84,439,071 118,125,125
Total Governmental Activities Net Position
662,679,484
665,190,960
660,329,799
662,087,484 673,989,472
Business -Type Activities
Net investment in capital assets
41,741,443
41,354,565
44,118,111
43,898,784 43,836,868
Restricted
-
-
-
- -
Unrestricted
(4,750,604)
(4,674,666)
(4,892,647)
(5,086,906) (5,140,966)
Total Business -Type Activities Net Position
36,990,839
36,679,899
39,225,464
38,811,878 38,695,902
Primary Government
Net investment in capital assets
571,422,785
568,969,231
567,613,500
560,398,466 560,876,355
Restricted
49,598,397
53,669,248
62,472,221
61,148,731 38,824,860
Unrestricted
78,649,141
79,232,380
69,469,542
79,352,165 112,984,159
Total Primary Government Net Position
699,670,323
701,870,859
699,555,263
700,899,362 712,685,374
Source: City of La Quinta
138
City of La Quinta
Net Position by Component (Table 1)
Year Ended June 30, 2022
Fiscal Year
Governmental Activities:
$ 510,913,594
$ 519,221,969
$ 509,777,422
$ 519,203,177
$ 517,697,036
Net investment in capital assets
39,204,789
44,815,499
46,001,248
46,711,801
54,412,358
Restricted
130,950,644
138,584,041
142,418,499
162,887,430
190,618,323
Unrestricted
681,069,027
702,621,509
698,197,169
728,802,408
762,727,717
Total Governmental Activities Net Position
Business -Type Activities:
43,585,880 43,375,536 39,712,955 42,717,914 42,491,762 Net investment in capital assets
- - - - - Restricted
(5,203,212) 240,125 3,145,820 368,750 1,036,834 Unrestricted
38,382,668 43,615,661 42,858,775 43,086,664 43,528,596 Total Business -Type Activities Net Position
Primary Government:
554,499,474
562,597,505
549,490,377
561,921,091
560,188,798
Net investment in capital assets
39,204,789
44,815,499
46,001,248
46,711,801
54,412,358
Restricted
125,747,432
138,824,166
145,564,319
163,256,180
191,655,157
Unrestricted
719,451,695
746,237,170
741,055,944
771,889,072
806,256,313
Total Primary Government Net Position
139
City of La Quinta
Changes in Net Position (Table 2)
Year Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016
2017
Expenses
Governmental activities:
General government
$ 4,511,023
$ 4,830,239
$ 5,166,732
$ 5,645,004
$ 5,565,727
Public safety
21,047,691
21,169,423
21,636,149
22,067,603
23,378,824
Planning and development
2,274,541
3,098,015
2,212,013
3,359,732
2,882,321
Community services
4,986,104
4,130,085
5,992,362
6,214,098
6,584,268
Public works
11,803,133
12,610,994
18,116,732
12,157,245
10,927,160
Contribution to other agencies
-
-
-
-
-
Interest on long-term debt
447,048
405,977
340,716
343,129
309,463
Total governmental activities expenditures
45,069,540
46,244,733
53,464,704
49,786,811
49,647,763
Business -type activities:
Golf course
4,208,855
4,971,977
5,053,360
4,373,586
3,965,644
Total business -type activities expenditures
4,208,855
4,971,977
5,053,360
4,373,586
3,965,644
Total Primary Government Expenditures
49,278,395
51,216,710
58,518,064
54,160,397
53,613,407
Program Revenues
Governmental activities:
Charges for services:
General government
38,812
71,042
121,140
192,538
504,127
Public safety
927,604
1,412,819
1,655,421
1,378,704
341,368
Planning and development
112,695
595,980
489,589
467,053
564,327
Community services
245,392
1,224,719
307,869
386,824
453,098
Public works
1,209,438
1,195,703
1,197,069
1,134,630
741,703
Operating grants and contributions
28,068,940
14,587,153
16,829,107
12,213,338
6,187,803
Capital grants and contributions
3,981,286
3,536,444
1,076,145
3,316,153
Total governmental activities program revenues
30,602,881
23,068,702
24,136,639
16,849,232
12,108,579
Business -type activities:
Charges for services:
Golf course
3,736,879
3,481,424
3,561,857
3,621,495
3,446,340
Capital grants and contributions
2,8721122
Total business -type activities program revenues
3,736,879
3,481,424
6,433,979
3,621,495
3,446,340
Total Primary Government Program Revenues
34,339,760
26,550,126
30,570,618
20,470,727
15,554,919
Net Revenues (Expenditures):
Governmental activities
(14,466,659)
(23,176,031)
(29,328,065)
(32,937,579)
(37,539,184)
Business -type activities
(471,976)
(1,490,553)
1,380,619
(752,091)
(519,304)
Total Net Revenues (Expenditures)
(14,938,635)
(24,666,584)
(27,947,446)
(33,689,670)
(38,058,488)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
Property taxes
7,043,604
9,193,753
8,776,491
8,798,296
15,521,335
Tax increment
-
-
-
-
-
Transient occupancy taxes
5,980,684
6,307,737
6,637,183
7,835,745
9,433,970
Sales tax
7,833,545
8,786,819
8,873,008
9,107,046
10,060,305
Franchise taxes
1,669,476
1,688,263
1,861,453
1,799,938
1,815,491
Business license taxes
292,966
307,654
306,087
334,465
365,451
Othertaxes
518,778
580,834
530,336
516,964
585,333
Motor vehicle in lieu, unrestricted
3,157,330
3,291,042
3,486,367
3,651,549
3,813,213
Investment income
1,605,718
2,190,357
1,981,343
2,390,468
442,710
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets
28,551
-
-
-
-
Miscellaneous
192,509
243,498
296,346
376,193
460,614
Special Item (interfund loan payoff)
-
-
-
-
-
Extraordinary gain/loss on dissolution of RDA
(2,189,984)
(6,402,450)
-
-
7,344,050
Transfers
(500,000)
(247,739)
(115,400)
(401,300)
Total governmental activities
26,133,177
25,687,507
32,500,875
34,695,264
49,441,172
Business -type activities:
Investment income
2,225
1,567
2,043
4,282
2,028
Net Increase (Decrease) of Investment Fair Value
-
-
-
-
-
Miscellaneous
100,799
678,046
915,164
218,823
-
Transfers
500,000
247,739
115,400
401,300
Total business -type activities
103,024
1,179,613
1,164,946
338,505
403,328
Total Primary Government
26,236,201
26,867,120
33,665,821
35,033,769
49,844,500
Changes In Net Position
Governmental activities
11,666,518
2,511,476
3,172,810
1,757,685
11,901,988
Business -type activities
(368,952)
(310,940)
2,545,565
(413,586)
(115,976)
Total Primary Government
11,297,566
2,200,536
5,718,375
1,344,099
11,786,012
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 actwites and 'miscellaneous' under business type
activities. This is also dicussed in the Notes to Basic Financial Statements section of the 2018/19 CAFR, Note 19: Special Item.
140
City of La Quinta
Changes in Net Position (Table 2)
Year Ended June 30, 2022
Fiscal Year
2018
2019
2020
2021
2022
Expenditures:
Governmental activities:
$ 8,869,174
$ 9,085,863
$ 9,877,251
$ 8,106,209
$ 9,733,224
General government
22,508,086
23,164,976
24,009,725
24,429,310
25,741,782
Public safety
4,352,134
5,913,321
5,845,836
6,508,522
4,716,745
Planning and development
9,231,268
6,202,084
11,362,950
6,958,234
8,439,863
Community services
15,580,975
4,430,519
32,248,031
11,438,197
14,985,480
Public works
-
-
-
-
-
Contribution to other agencies
1,468,971
210,941
98,049
42,081
11,914
Interest on long-term debt
62,010,610
49,007,703
83,441,842
57,482,553
63,629,008
Total governmental activities expenditures
Business -type activities:
4,318,463
4,558,922
4,148,190
4,169,286
4,746,281
Golf course
4,318,463
4,558,922
4,148,190
4,169,286
4,746,281
Total business -type activities expenditures
66,329,073
53,566,625
87,590,032
61,651,839
68,375,289
Total Primary Government Expenditures
Program Revenues:
Governmental activities:
Charges for services:
883,153
516,115
615,348
1,541,535
1,402,810
General government
367,848
376,249
367,277
770,760
648,914
Public safety
724,499
636,683
799,040
710,529
1,315,760
Planning and development
442,656
479,542
366,896
178,554
137,769
Community services
1,054,902
1,119,816
1,436,362
1,503,633
3,378,132
Public works
4259916
5623509
7:817:482
4413523
5,786,773
Operating grants and contributions
4:455:060
5:462:395
9613752
15:770:048
11,952,031
Capital grants and contributions
12,188,034
14,214,310
21,016,157
24,888,582
24,622,189
Total governmental activities program revenues
Business -type activities:
Charges for services:
3,567,718
3,773,396
2,746,748
3,509,096
4,679,163
Golf course
Capital grants and contributions
3,567,718
3,773,396
2,746,748
3,509,096
4,679,163
Total business -type activities program revenues
15,755,752
17,987,706
23,762,905
28,397,678
29,301,352
Total Primary Government Program Revenues
Net Revenues (Expenditures):
(49,822576)
(34,793,394)
(62,425,685)
(32,593,971)
(39,006,819)
Governmental activities
(750:745)
(785,526)
(1,401,442)
(660,190)
(67,118)
Business -type activities
(50,573,321)
(35,578,920)
(63,827,127)
(33,254,161)
(39,073,937)
Total Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
Governmental activities:
Taxes:
15,887,015
16,423,843
16,710,544
16,893,629
17,823,858
Property taxes
-
-
-
-
-
Tax increment
10,752,788
11,230,915
8,079,394
11,847,139
18,365,424
Transient occupancy taxes
18,956,985
20,905,243
19,136,015
23,323,549
28,204,906
Sales tax
1,977,179
2,032,848
1,996,593
2,055,505
2,240,468
Franchise taxes
345,187
418,707
378,744
383,551
446,745
Business license taxes
718,472
713,237
662,545
1,568,997
1,352,585
Othertaxes
3,941,348
4,086,536
4,290,417
4,376,455
4,663,327
Motor vehicle in lieu, unrestricted
803,654
5,150,613
5,110,358
1,427,664
219,164
Investment income
(5,727,183)
Net Increase (Decrease) of Investment Fair Value
-
-
-
-
-
Gain (loss) on sale of capital assets
649,566
394,347
1,404,143
1,457,788
943,160
Miscellaneous
-
(5,553,561)
-
-
-
Special Item (interfund loan payoff)
3,624, 121
993148
867,792
739933
609515
Extraordinary gain/loss on dissolution of RDA
(434,000)
(450:000)
(635,200)
(875:000)
(550:000)
Transfers
57,222,315
56,345,876
58,001,345
63,199,210
68,591,969
Total governmental activities
Business -type activities:
3,511
14,958
9,356
13,081
4,329
Investment income
-
-
-
-
(45,279)
Net Increase (Decrease) of Investment Fair Value
-
5,553,561
-
-
-
Miscellaneous
434,000
450,000
635,200
875,000
550,000
Transfers
437,511
6,018,519
644,556
888,081
509,050
Total business -type activities
57,659,826
62,364,395
58,645,901
64,087,291
69,101,019
Total Primary Government
changes In Net Position
7,399739
21552482
(4,424:340),
30,605,239
29,585,150
Governmental activities
(313:234)
5:232:993
(756886)
227,891
441,932
Business -type activities
7,086,505
26,785,475
(5,181,226)
30,833,130
30,027,082
Total Primary Government
141
Expenses
General government
Public safety
Planning and development
Community services
Public works
Contribution to other agencies
Interest on long-term debt
Total Governmental Activities Expenditures
Program Revenues
Charges for services:
General government
Public safety
Planning and development
Community services
Public works
Operating grants and contributions
Capital grants and contributions
City of La Quinta
Changes in Net Position - Governmental Activities (Table 3)
Year Ended June 30, 2022
Fiscal Year
2013 2014 2015 2016 2017
$ 4,511,023
$ 4,830,239
$ 5,166,732
$ 5,645,004
$ 5,565,727
21,047,691
21,169,423
21,636,149
22,067,603
23,378,824
2,274,541
3,098,015
2,212,013
3,359,732
2,882,321
4,986,104
4,130,085
5,992,362
6,214,098
6,584,268
11,803,133
12,610,994
18,116,732
12,157,245
10,927,160
447,048
405,977
340,716
343,129
309,463
45,069,540
46,244,733
53,464,704
49,786,811
49,647,763
38,812
71,042
121,140
192,538
504,127
927,604
1,412,819
1,655,421
1,378,704
341,368
112,695
595,980
489,589
467,053
564,327
245,392
1,224,719
307,869
386,824
453,098
1,209,438
1,195,703
1,197,069
1,134,630
741,703
28,068,940
14,587,153
16,829,107
12,213,338
6,187,803
4,115,238
3,981,286
3,536,444
1,076,145
3,316,153
Total Governmental Activities Program Revenues 34,718,119 23,068,702 24,136,639 16,849,232 12,108,579
Net Revenues (Expenditures) (10,351,421) (23,176,031) (29,328,065) (32,937,579) (37,539,184)
General Revenues and Other Changes in Net Position
Taxes:
Property taxes
Tax increment
Transient occupancy taxes
Sales tax
Franchise tax
Business license taxes
Other tax
Motor vehicle in lieu, unrestricted
Investment income
Net Increase (Decrease) of Investment Fair Value
Gain (loss) on sale of capital assets
Miscellaneous
Special item (interfund loan payoff)
Extraordinary gain/loss on dissolution of RDA
Transfers
Total Governmental Activities
Changes in Net Position
Source: City of La Quinta
7,043,604
9,193,753
8,776,491
8,798,296
15,521,335
5,980,684
6,307,737
6,637,183
7,835,745
9,433,970
7,833,545
8,786,819
8,873,008
9,107,046
10,060,305
1,669,476
1,688,263
1,861,453
1,799,938
1,815,491
292,966
307,654
306,087
334,465
365,451
518,778
580,834
530,336
516,964
585,333
3,157,330
3,291,042
3,486,367
3,651,549
3,813,213
1,605,718
2,190,357
1,981,343
2,390,468
442,710
28,551
-
-
376,193
460,614
192,509
243,498
296,346
-
-
(2,189,984)
(6,402,450)
-
7,344,050
(500,000)
(247,739)
(115,400)
(401,300)
26,133,177
25,687,507
32,500,875
34,695,264
49,441,172
15,781,756
2,511,476
3,172,810
1,757,685
11,901,988
142
City of La Quinta
Changes in Net Position - Governmental Activities (Table 3)
Year Ended June 30, 2022
Fiscal Year
2018
2019
2020
2021
2022
Expenditures:
$ 8,869,174
$ 9,085,863
$ 9,877,251 $
8,106,209
$ 9,733,224
General government
22,508,088
23,164,976
24,009,725
24,429,310
25,741,782
Public safety
4,352,134
5,913,321
5,845,836
6,508,522
4,716,745
Planning and development
9,231,268
6,202,084
11,362,950
6,958,234
8,439,863
Community services
15,580,975
4,430,519
32,248,031
11,438,197
14,985,480
Public works
-
-
-
-
-
Contribution to other agencies
1,468,971
210,941
98,049
42,081
11,914
Interest on long-term debt
62,010,610
49,007,703
83,441,842
57,482,553
63,629,008
Total Governmental Activities Expenditures
Program Revenues:
Charges for services:
883,153
516,115
615,348
1,541,535
1,402,810
General government
367,848
376,249
367,277
770,760
648,914
Public safety
724,499
636,683
799,040
710,529
1,315,760
Planning and development
442,656
479,542
366,896
178,554
137,769
Community services
1,054,902
1,119,816
1,436,362
1,503,633
3,378,132
Public works
4,259,916
5,623,509
7,817,482
4,413,523
5,786,773
Operating grants and contributions
4,455,060
5,462,395
9,613,752
15,770,048
11,952,031
Capital grants and contributions
Total Governmental Activities Program
12,188,034
14,214,310
21,016,157
24,888,582
24,622,189
Revenues
(49,822,576)
(34,793,394)
(62,425,685)
(32,593,971)
(39,006,8191
Net Revenues (Expenditures)
General Revenues and Other Changes in
Net Position:
Taxes:
15,887,015
16,423,843
16,710,544
16,893,629
17,823,858
Property taxes
-
-
-
-
-
Tax increment
10,752,788
11,230,915
8,079,394
11,847,139
18,365,424
Transient occupancy taxes
18,956,985
20,905,243
19,136,015
23,323,549
28,204,906
Sales tax
1,977,179
2,032,848
1,996,593
2,055,505
2,240,468
Franchise tax
345,187
418,707
378,744
383,551
446,745
Business license taxes
718,472
713,237
662,545
1,568,997
1,352,585
Other tax
3,941,348
4,086,536
4,290,417
4,376,455
4,663,327
Motor vehicle in lieu, unrestricted
803,654
5,150,613
5,110,358
1,427,664
219,164
Investment income
(5,727,183)
Net Increase (Decrease) of Investment Fair Value
649,566
394,347
1,404,143
1,457,788
943,160
Gain (loss) on sale of capital assets
-
-
-
-
-
Miscellaneous
(5,553,561)
-
-
-
Special item (interfund loan payoff)
3,624,121
993,148
867,792
739,933
609,515
Extraordinary gain/loss on dissolution of RDA
(434,000)
(450,000)
(635,200)
(875,000)
(550,000)
Transfers
57,222,315
56,345,876
58,001,345
63,199,210
68,591,969
Total Governmental Activities
7,399,739
21,552,482
(4,424,340)
30,605,239
29,585,150
Changes in Net Position
143
City of La Quinta
Changes in Net Position — Business -type Activities (Table 4)
Year Ended June 30, 2022
Fiscal Year
2013 2014 2015 2016 2017
Expenses
Golf course $ 4,208,855 $ 4,971,977 $ 5,053,360 $ 4,373,586 $ 3,965,644
Total Business -Type Activities Expenditures 4,208,855 4,971,977 5,053,360 4,373,586 3,965,644
Program revenues
Charges for services:
Golf course 3,736,879 3,481,424 3,561,857 3,621,495 3,446,340
Capital grants and contributions - - 2,872,122 - -
Total Business -Type Activities Program Revenues 3,736,879 3,481,424 6,433,979 3,621,495 3,446,340
Net Revenues (Expenditures) (471,976) (1,490,553) 1,380,619 (752,091) (519,304)
General Revenues and Other Changes in Net Position
Investment income
2,225
1,567
2,043
4,282
2,028
Net Increase (Decrease) of Investment Fair Value
-
-
-
-
-
Gain (loss) on sale of capital assets
-
-
-
-
Miscellaneous
100,799
678,046
915,164
218,823
-
Transfers
-
500,000
247,739
115,400
401,300
Capital contributions
Total Business -Type Activities
103,024
1,179,613
1,164,946
338,505
403,328
Changes in Net Position
(368,952)
(310,940)
2,545,565
(413,586)
(115,976)
Source: City of La Quinta
144
City of La Quinta
Changes in Net Position — Business -type Activities (Table 4)
Year Ended June 30, 2022
Fiscal Year
2018
2019
2020
2021
2022
Expenditures:
$ 4,318,463
$ 4,558,922
$ 4,148,190
$ 4,169,286
$ 4,746,281
Golf course
4,318,463
4,558,922
4,148,190
4,169,286
4,746,281
Total Business -Type Activities Expenditures
Program revenues:
Charges for services:
3,567,718
3,773,396
2,746,748
3,509,096
4,679,163
Golf course
-
-
-
-
-
Capital grants and contributions
3,567,718
3,773,396
2,746,748
3,509,096
4,679,163
Total Business -Type Activities Program Revenues
(750,745)
(785,526)
(1,401,442)
(660,190)
(67,118)
Net Revenues (Expenditures)
General Revenues and Other Changes in Net Position:
3,511
14,958
9,356
13,081
4,329
Investment income
-
-
-
-
(45,279)
Net Increase (Decrease) of Investment Fair Value
-
Gain (loss) on sale of capital assets
-
5,553,561
Miscellaneous
434,000
450,000
635,200
875,000
550,000
Transfers
Capital contributions
437,511
6,018,519
644,556
888,081
509,050
Total Business -Type Activities
(313,234)
5,232,993
(756,886)
227,891
441,932
Changes in Net Position
145
City of La Quinta
Fund Balances of Governmental Funds (Table 5)
Year Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016(1)
2017
General fund
Nonspendable:
Prepaid costs
$ 11,786
$ 1,500
$ 15,653
$ 204,589
$ 10,578
Land held for resale
8,320,000
8,320,000
8,320,000
8,320,000
8,320,000
Advances to other funds
15,509,691
15,163,183
14,943,098
14,974,800
15,022,660
Deposits
4,830
4,830
33,985
-
-
Due from Other Governments
41,378,966
34,976,516
26,715,575
25,105,681
29,154,040
Restricted for:
Debt service
-
-
-
-
-
Section 115 Trust (Note 11)
-
-
-
-
-
Committed:
Emergency Reserve(2)
16,034,995
16,034,995
15,372,600
15,576,000
16,534,000
Natural Disaster Reserve(2)
-
-
-
-
-
Economic Disaster Reserve(2)
-
-
-
-
-
Post retirement health benefits(3)
1,523,401
1,523,401
1,523,401
1,523,400
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
4,134,000
Pension Trust(4)
-
-
-
-
Carryovers
356,438
476,400
4,274,046
120,000
Other
-
-
-
-
-
Assigned:
Continuing appropriations
1,013,533
209,000
-
Public Safety (Note 13b)
-
-
9,371,699
Sales Tax Reserve (Note 13b)
-
Capital Projects (Note 13b)
-
-
-
6,322,570
Unassigned
5,926,651
10,699,641
13,837,312
13,822,012
16,949,526
Total general fund
92,572,590
91,633,753
86,808,564
98,565,571
307,462,473
All other governmental funds
Nonspendable:
Prepaid costs
10,310
8,422
10,349
Notes and loans
2,062,589
-
-
Advances to other funds
-
Deposits
13,600
-
-
-
-
Restricted:
Planning and development projects
3,730,533
5,970,006
13,108,499
18,211,200
22,664,093
Public safety
258,968
274,274
301,843
189,988
83,506
Community services
11,626,441
12,459,516
10,711,704
9,872,124
10,040,222
Public works
262,754
1,571,163
1,129,697
1,250,827
1,546,505
Capital Projects
1,392,581
1,590,168
3,873,699
3,597,221
4,490,534
Debt service
2,234
-
-
-
-
Assigned:
Continuing appropriations
-
Unassigned
(13,179,196)
(12,370,462)
(12,703,744)
(11,655,344)
(11,423,008)
Total all other governmental funds
6,180,814
9,494,665
16,421,698
21,474,438
27,412,201
Total Governmental Funds
98,753,404
101,128,418
103,230,262
120,040,009
134,874,674
Notes:
MIn 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.
146
City of La Quinta
Fund Balances of Governmental Funds (Table 5)
Year Ended June 30, 2022
Fiscal Year
2018
2019
2020
2021
2022
General fund:
Nonspendable:
$ 90,657
$ 37,182
$ 14,065
$ 25,246
$ 46,990
Prepaid costs
8,320,000
5,730,990
5,403,652
5,403,652
5,403,652
Land held for resale
14,954,085
-
-
-
-
Advances to other funds
-
-
-
-
-
Deposits
29,611,707
27,915,770
26,069,742
24,070,622
21,915,347
Due from Other Governments
Restricted for:
-
-
-
-
-
Debt service
6,540,000
10,249,738
11,381,922
10,137,888
Section 115 Trust (Note 11)
Committed:
-
-
-
-
-
Emergency Reserve(2)
7,400,000
10,000,000
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
11,000,000
Economic Disaster Reserve(2)
-
-
-
-
-
Post retirement health benefits(3)
5,000,000
5,000,000
6,540,000
10,000,000
10,000,000
Capital Replacement Reserve(2)
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
Cash Flow Reserve(2)
2,000,000
-
-
-
Pension Trust(4)
2,186,500
745,300
1,778,800
1,209,870
1,209,100
Carryovers
-
-
-
-
-
Other
Assigned:
-
-
-
-
-
Continuing appropriations
9,754,327
9,864,841
10,491,654
11,423,931
11,183,821
Public Safety (Note 13b)
5,169,970
7,721,975
8,736,219
15,128,658
15,355,043
Sales Tax Reserve (Note 13b)
4,996,815
11,853,162
13,155,144
13,431,089
30,761,847
Capital Projects (Note 13b)
19,199,506
16,228,627
19,094,651
24,241,553
33,893,325
Unassigned
121,823,567
117,637,847
123,333,665
142,316,543
165,907,013
Total general fund
All other governmental funds:
Nonspendable:
386
2,875
1,019
96,590
Prepaid costs
-
-
-
-
Notes and loans
Advances to other funds
Deposits
Restricted:
22,607,600
22,996,435
23,680,641
24,751,443
25,118,552
Planning and development projects
342,919
1,391,721
1,607,101
931,352
1,073,419
Public safety
10,016,652
13,775,710
14,376,472
12,813,788
13,970,309
Community services
2,033,627
2,667,401
3,208,072
5,196,324
7,353,021
Public works
4,203,991
3,904,492
3,128,962
3,018,894
6,897,057
Capital Projects
-
-
-
Debt service
Assigned:
-
-
Continuing appropriations
(11,347,062)
(1,852,211)
(5,175,243)
(3,182,262)
(3,293,897)
Unassigned
27,857,727
42,883,934
40f828,880
43,530,558
51,215,051
Total all other governmental funds
149,681,294
160,521,781
164,162,545
185,847,101
217,122,064
Total Governmental Funds
147
City of La Quinta
Changes in Fund Balances of Governmental Funds (Table 6)
Year Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016
2017
Revenues
Taxes
$ 23,506,679
$ 27,192,089
$ 26,678,471
$ 28,057,989
$ 41,832,117
Assessments
954,058
951,181
940,221
944,050
953,699
Licenses and permits
566,510
953,540
1,356,978
1,161,820
1,118,911
Intergovernmental
15,464,942
16,506,666
15,702,943
14,960,676
4,870,334
Charges for services
625,813
1,238,277
1,341,438
1,332,541
1,021,336
Use of money and property
1,582,762
2,175,048
1,950,957
7,475,742
4,659,301
Contributions, fines, and forfeitures
18,377,253
838,972
1,956,452
28,459
348,345
Developer participation
1,226,825
3,059,254
2,803,681
1,441,075
1,042,568
Miscellaneous
491,267
575,001
580,843
992,282
289,047
Total Revenues
62,796,109
53,490,028
53,311,984
56,394,634
56,135,658
Expenditures
Current:
General government
4,587,888
4,068,827
5,050,425
5,267,024
5,845,197
Public safety
20,168,038
21,189,086
21,664,472
22,125,962
23,377,755
Planning and development
27,514,768
1,748,477
2,097,525
3,294,259
2,549,779
Community services
4,411,536
4,011,432
4,798,123
4,983,038
4,626,401
Public works
5,067,370
4,617,050
5,283,309
4,101,210
4,025,958
Capital projects
8,622,783
7,974,747
11,097,186
7,209,874
6,859,428
Debt service:
Principal retirement
556,871
558,019
594,383
632,615
651,625
Interest and fiscal charges
437,678
411,010
348,334
346,137
307,600
Payment to bond escrow
-
-
-
-
-
Payments under pass -through obligations
-
-
-
-
Total Expenditures
71,366,932
44,578,648
50,933,757
47,960,119
48,243,743
Excess (Deficiency) of Revenues Over (Under)
Expenditures
(8,570,823)
8,911,380
2,378,227
8,434,515
7,891,915
Other financing sources (uses):
Issuance of tax allocation bonds
-
-
-
Issuance of revenue bonds
Proceeds from sale of land
-
-
-
-
-
Transfersin
29,841,053
4,201,763
12,037,331
6,420,538
21,503,514
Transfers out
(29,841,053)
(4,335,679)
(12,322,714)
(6,614,349)
(21,904,814)
Other debts issued
-
-
Capital leases
71,045
9,000
Proceeds from sale of capital assets
121,652
-
Total Other Financing Sources (Uses)
192,697
(133,916)
(276,383)
(193,811)
(401,300)
Extraordinary gain/loss on dissolution of RDA
-
(6,402,450)
7,344,050
Special item (interfund loan payoff)
-
-
-
-
Net Change in Fund Balances
(8,378,126)
2,375,014
2,101,844
8,240,704
14,834,665
Debt Service as a Percentage of Noncapital
Expenditures (1) 1.6% 2.6% 2.2% 2.4% 2.5%
Notes:
MThe 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.
148
City of La Quinta
Changes in Fund Balances of Governmental Funds (Table 6)
Year Ended June 30, 2022
2018 2019 2020 2021 2022
Revenues:
$ 44,931,250
$ 48,462,493
$ 44,881,038
$ 53,493,786
$ 65,107,160
Taxes
950,541
961,633
957,017
984,435
969,257
Assessments
1,394,820
1,555,026
1,913,519
2,020,596
4,521,449
Licenses and permits
12,555,259
14,075,980
17,107,595
25,720,328
15,989,135
Intergovernmental
1,279,864
1,170,825
1,179,592
964,710
1,623,951
Charges for services
2,388,683
4,824,651
5,219,088
2,601,482
(3,545,192)
Use of money and property
375,390
375,491
665,193
779,606
657,589
Contributions, fines, and forfeitures
1,534,628
2,231,471
1,863,587
1,844,665
5,584,146
Developer participation
1,196,057
2,425,675
1,371,095
645,780
970,399
Miscellaneous
66,606,492
76,083,245
75,157,724
89,055,388
91,877,894
Total Revenues
Expenditures
Current:
7,737,111
10,129,408
7,732,495
8,464,230
10,516,550
General government
22,508,088
23,164,976
24,009,725
24,429,310
25,741,782
Public safety
4,310,589
6,415,466
5,436,281
6,544,477
5,234,065
Planning and development
5,236,083
5,944,200
6,159,707
5,583,420
6,325,904
Community services
4,146,135
4,219,461
5,421,606
5,287,280
5,654,080
Public works
9,015,861
9,096,460
23,150,511
18,219,385
7,167,446
Capital projects
Debt service:
666,988
650,000
-
-
10,705
Principal retirement
1,460,371
178,080
28,868
15,133
11,914
Interest and fiscal charges
-
-
-
-
-
Payment to bond escrow
-
-
-
-
-
Payments under pass -through obligations
55,081,226
59,798,051
71,939,193
68,543,235
60,662,446
Total Expenditures
Excess (Deficiency) of Revenues Over (Under)
11,525,266 16,285,194 3,218,531 20,512,153 31,215,448 Expenditures
Other financing sources (uses):
Issuance of tax allocation bonds
Issuance of revenue bonds
-
-
-
1,219,485
-
Proceeds from sale of land
7,432,340
12,942,596
16,467,409
10,781,267
6,131,440
Transfers in
(7,775,107)
(13,826,890)
(16,912,971)
(11,568,281)
(6,681,440)
Transfers out
Other debts issued
Capital leases
Proceeds from sale of capital assets
(342,767)
(884,294)
(445,562)
432,471
(550,000)
Total Other Financing Sources (Uses)
3,624,121
993,148
867,792
739,933
609,515
Extraordinary gain/loss on dissolution of RDA
-
(5,553,561)
-
-
-
Special item (interfund loan payoff)
14,806,620
10,840,487
3,640,761
21,684,557
31,274,963
Net Change in Fund Balances
Debt Service as a Percentage of Noncapital
3.26% 2.03% 0.06% 0.03% 0.06% Expenditures (1)
149
City of La Quinta
Tax Revenue by Source (Table 7)
Year Ended June 30, 2022
Transient
Business
Fiscal
Property Tax
Occupancy
Franchise
License
Year
Tax (2) Increment (1)
Tax
Sales Tax
Tax
Tax
2013
$7,043,604 $
$5,980,684
$7,833,545
$1,669,476
$ 292,966
2014
9,193,753 -
6,307,737
8,786,819
1,688,263
307,654
2015
8,776,491 -
6,637,183
8,873,008
1,861,453
306,087
2016
8,798,296 -
7,835,745
9,107,046
1,799,938
334,465
2017
15,521,335 -
9,433,970
10,060,305
1,815,491
365,451
2018
15,887,015 -
10,752,788
18,956,985
1,977,179
345,187
2019
16,423,843 -
11,230,915
20,905,243
2,032,848
418,707
2020
16,710,544 -
8,079,394
19,136,015
1,996,593
378,744
2021
16,893,629 -
11,847,139
23,323,549
2,055,505
383,551
2022
17,823,858 -
18,365,424
28,204,906
2,240,468
446,745
$70
$60
$50
$40
$30
$20
$10
$0
Tax Revenue by Source
(Excluding Tax Increment)
(in millions)
Document
Transfer
Tax
Total
$ 518,778
$ 23,339,053
580,834
26,865,060
530,336
26,984,558
516,964
28,392,454
585,333
37,781,885
718,472
48,637,626
713,237
51,724,793
662,545
46,963,835
1,568,997
56,072,370
1,352,585
68,433,986
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
■ Property Tax (2) ■Transient Occupancy Tax ■Sales Tax
■Franchise Tax ■Business License Tax o Document Transfer Tax
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.
150
Fiscal Year 2021-22
Business Name (1) Business Category
Business Name I')
City of La Quinta
Top 25 Sales Tax Producers (Table 8)
Year Ended June 30, 2022
Fiscal Year 2012-13
Business Category
Arco AM PM
Service Stations
Arco AM/PM
Service Stations
Best Buy
Electronics/Appliance Stores
Bed Bath & Beyond
Home Furnishings
Circle K
Service Stations
Best Buy
Electronics/Appliance Stores
Cliffhouse
Fine Dining
BevMo
Convenience Stores/Liquor
Costco
Discount Dept. Stores
Chevrolet Cadillac of La Quinta
New Motor Vehicle Dealers
Floor & Decor
Building Materials
Circle K
Service Stations
G&M Oil
Service Stations
Costco
Discount Dept. Stores
Genesis/Hyundai of La Quinta
New Motor Vehicle Dealers
G & M Oil
Service Stations
Hobby Lobby
Specialty Stores
Hyundai of La Quinta
New Motor Vehicle Dealers
Home Depot
Building Materials
Home Depot
Building Materials
In N Out Burger
Quick -Service Restaurants
Kohl's
Department Stores
Kohl's
Department Stores
La Quinta Resort & Club
Hotels -Liquor
La Quinta Chevrolet & Cadillac
New Motor Vehicle Dealers
Lowe's
Building Materials
La Quinta Resort & Club
Hotels/Motels
Marshalls
Family Apparel
Lavender Bistro
Fine Dining
Ralphs
Grocery Stores
Lowe's
Building Materials
Ross
Family Apparel
Marshalls
Family Apparel
Stater Bros
Grocery Stores
PGA West Private
Leisure/Entertainment
Stein Mart
Department Stores
Ross
Family Apparel
Target
Discount Dept. Stores
Target
Discount Dept. Stores
Torre Nissan
New Motor Vehicle Dealers
T] Maxx
Family Apparel
Tower Mart
Service Stations
Torre Nissan
New Motor Vehicle Dealers
USA Gas
Service Stations
Tower Mart
Service Stations
Verizon Wireless
Electronics/Appliance Stores
Vons
Grocery Stores
Vintners Shell Station
Service Stations
Walmart Supercenter
Discount Dept. Stores
Walmart Supercenter
Discount Dept. Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts: 65.33% Percent of Fiscal Year Total Paid by Top 25 Accounts: 69.77%
Combined Sales Tax Revenue
(in millions)
$30
$25
$20
$15
$10
$5
$0 ; I I I I I I I I
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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.
151
This page intentionally left blank.
Fiscal Year 2021-22
Business Name (l)
Business Category
Amazon Fulfillment Services
General Merchandise
Amazon MFA
General Merchandise
Best Buy
Electronics/Appliance Stores
Circle K
Service Stations
Costco
Discount Dept. Stores
Dept. of Motor Vehicles Allocation
Used Automotive Dealers
Desert European Motor Cars
New Motor Vehicle Dealers
Floor & Decor
Building Materials
G & M Oil
Service Stations
Home Depot
Building Materials
In N Out
Quick -Service Restaurants
Kohl's
Department Stores
La Quinta Resort & Club
Hotels/Motels
Lowe's
Building Materials
Marshalls
Family Apparel
Mathis Brothers Furniture
Home Furnishings
PGA West Private
Leisure/Entertainment
Ross
Family Apparel
Target
Discount Dept Stores
Tesla Motors
New Motor Vehicle Dealers
TI Maxx
Family Apparel
Tower Mart
Service Stations
Verizon Wireless
Electronics/Appliance Stores
Vons
Grocery Stores
Walmart Supercenter
Discount Dept. Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts: 44.790/a
City of La Quinta
Top 25 Measure G Sales Tax Producers (Table 9)
Year Ended June 30, 2022
Fiscal Year 2012-13
Business Name Business Category
Measure G was passed in November 2016 and implemented on
April 1, 2017. Ten-year is data not available.
153
Apparel stores
General merchandise
Food stores
Eating and drinking places
Building materials
Auto dealers and supplies
Service stations
Other retail stores
All other outlets
Total
utner retail
13%
Service ste
7%
Aui
City of La Quinta
Taxable Sales by Category (Table 10)
Year Ended June 30, 2022
Calendar Year
2012 2013 2014 2015 2016
$ 24,430
$ 25,741 $
25,461 $
25,115 $
26,280
220,970
223,324
216,871
208,189
206,808
25,854
26,394
25,748
22,845
25,359
94,859
97,662
101,647
106,216
115,974
65,445
68,606
73,087
75,658
78,299
62,668
72,839
84,826
87,440
83,010
56,001
52,093
47,541
40,777
34,566
99,028
100,811
101,721
105,284
107,648
130,421
142,049
150,746
155,173
172,135
779,676
809,519
827,648
826,697
850,079
Taxable Sales
Calendar Year 2012
iI merchandise
28%
=ood stores
3%
_....._...a places
12%
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
154
City of La Quinta
Taxable Sales by Category (Table 10)
Year Ended June 30, 2022
Calendar Year
2017
2018
2019
2020
2021
$ 31,822
$ 34,508
$ 33,937
$ 24,929
$ 38,612
Apparel stores
222,767
232,147
235,969
235,841
274,045
General merchandise
25,964
26,126
26,191
30,610
30,350
Food stores
117,064
122,255
132,184
100,187
149,526
Eating and drinking places
83,383
86,569
89,036
111,231
128,048
Building materials
81,264
82,702
85,401
78,189
105,011
Auto dealers and supplies
37,558
42,164
42,998
33,742
46,985
Service stations
104,834
114,980
111,239
101,620
140,854
Other retail stores
180,360
210,360
220,260
222,916
260,247
All other outlets
885,016
951,811
977,215
939,265
1,173,678
Total
Other ret,
12
Service
4`.
Taxable Sales
Calendar Year 2021
Apparel stores
All Min- -tlats 3%
Building materials
11%
lndise
stores
rinking
places
13%
155
City of La Quinta
Assessed Value of Taxable Property (Table 11)
Year Ended June 30, 2022
City of La Quinta, Tax District 02-2375
Fiscal Year Ended
Unsecured
Home Owner
Taxable Assessed Direct Rate
June 30,
Residential
Commercial
Agriculture(4)
Other I1)
Property <x)
Exemption(s)
Value (3)
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
2022
13,470,995,430
758,841,326
59,428,116
816,367,506
104,233,962
(46,243,400)
15,163,622,940 1.0000
$16,000
$15,000
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Taxable Assessed Value
(in millions)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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.
R) 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.
(°) 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".
(S) 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
156
City of La Quinta
Direct and Overlapping Property Tax Rates (Table 12)
Year Ended June 30, 2022
City Non -Project Area
2013 ") 2014 ill 2015 (l) 2016 (l) 2017 ") 2018 2019 2020 2021 2022
Direct Rates:
City of La Quinta
0.0760
0.0760
0.0760
0.0760
0.0760
0.0760
0.0646
0.0646
0.0646
0.0646
ERAF Share of La Quinta General Fund
0.0113
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
Redevelopment Agency Project Area 2
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
County of Riverside
0.1958
0.1958
0.1958
0.1958
0.1958
0.1958
0.0978
0.0978
0.0978
0.0978
ERAF Share of County
0.0980
0.0980
0.0980
0.0980
County Free Library
0.0253
0.0253
0.0253
0.0253
0.0253
0.0253
0.0253
0.0253
0.0253
0.0253
County Structure Fire Protection
0.0544
0.0544
0.0544
0.0544
0.0544
0.0544
0.0544
0.0544
0.0544
0.0544
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
Desert Sands Unified School
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
Desert Community College District
0.0698
0.0698
0.0698
0.0698
0.0698
0.0698
0.0698
0.0698
0.0698
0.0698
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
Riverside County Regional Park & Open Spi
0.0039
0.0039
0.0039
0.0039
0.0040
0.0040
0.0040
0.0040
0.0040
0.0040
CV Public Cemetery
0.0031
0.0031
0.0031
0.0031
0.0031
0.0031
0.0032
0.0032
0.0032
0.0032
CV Mosquito & Vector Control
0.0127
0.0127
0.0127
0.0126
0.0126
0.0126
0.0126
0.0127
0.0127
0.0127
Desert Recreation District
0.0192
0.0192
0.0192
0.0192
0.0192
0.0192
0.0192
0.0192
0.0192
0.0192
CVWD State Water Project
0.0254
0.0254
0.0254
0.0254
0.0254
0.0254
0.0254
0.0254
0.0254
0.0254
CV Resource Conservation
0.0003
0.0003
0.0003
0.0003
0.0003
0.0003
0.0003
0.0003
0.0003
0.0003
CVWD Improvement District 1
0.0118
0.0118
0.0118
0.0118
0.0118
0.0118
0.0118
0.0118
0.0118
0.0118
CVWD Storm Water Unit
0.0321
0.0321
0.0321
0.0321
0.0321
0.0321
0.0321
0.0321
0.0321
0.0321
Total Direct Rate (;)
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
020-160
020-160
020-160
020-160
020-160
020-160
Overlapping Rates (4) :
Coachella Valley Unified School District
0.0797
0.1492
0.1492
0.1322
0.1660
0.1761
0.1495
0.1488
0.1455
0.1367
Desert Sands Unified School
0.1116
0.1095
0.1098
0.1092
0.0860
0.0725
0.0742
0.0738
0.0739
0.0750
Coachella Valley Water District
0.0800
0.1000
0.1000
0.1000
0.1000
0.1000
0.1000
0.1000
0.1000
0.1100
Desert Community College District
0.0200
0.0200
0.0233
0.0209
0.0204
0.0403
0.0398
0.0398
0.0395
0.0395
Total Overlapping Rate
0.2912
0.3787
0.3823
0.3622
0.3724
0.3889
0.3635
0.3624
0.3589
0.3611
Total Direct and Overlapping Rate
1.2912
1.3787
1.3823
1.3622
1.3724
1.3889
1.3635
1.3625
1.3589
1.3612
Notes:
(l) Direct rate from Tax Rate Area (TRA) 020-160 and overlapping rates provided by HdL, Coren & Cone; data source Riverside County Assessor 2012/13-2021/22
Annual Tax Increment (Rate) Tables.
(1) 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
(1) 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
157
HP LQ Investment LP
Inland American La Quinta Pavilion
HJ CG Partners
Hawthorn IL PropCo
Town and Country Partners
Walmart Real Estate Business Trust
CM Wave Dev
East of Madison
SilverRock Phase I LLC
Aventine Dev
KSL Desert Resort
T D Desert Development LP
MSR Resort Golf Course
Coral Option I
Iota Griffin LLC
WRM La Quinta
Village Resort
Total
City of La Quinta
Principal Property Taxpayers (Table 13)
Year Ended June 30, 2022
Fiscal Year 2021-22
Percent of
Total City
Taxable
Taxable
Assessed Value
Assessed
Rank
(1)
Value
1
$ 145,679,052
0.96%
2
50,769,495
0.33%
3
47,091,774
0.31%
4
46,235,034
0.30%
5
36,851,361
0.24%
6
32,387,856
0.21%
7
31,640,020
0.21%
8
28,498,109
0.190/0
9
27,707,383
0.180/0
10
27,664,067
0.18%
3.13%
$ 474,524,151
Principal
Property Tax Payers
FY 2021-22
SilverRock Phase I LLC
East of Madison
CM Wavi
Walmart Real
Business Tr
Town ai
Pa
HI CG Partners
Fiscal Year 2012-13
Percent of
Total City
Taxable Taxable
Assessed Value Assessed
Rank (1) Value
$
0.000 /o
5 43,399,514
0.42%
-
0.00%
0.00%
-
0.00%
9 28,668,169
0.28%
-
0.00%
4 45,365,091
0.44%
-
0.00%
-
0.00%
1 151,877,857
1.47%
2 100,155,108
0.97%
3 61,124,895
0.59%
6 42,839,010
0.41%
7 35,412,485
0.34%
8 30,170,000
0.29%
10 24,486,681
0.24%
563,498,810
5.46%
�HP LQ Investment LP
id American La
iinta Pavilion
(1) Taxable valuations include secured and unsecured
Source:
HdL, Coren & Cone; Riverside County Assessor 2012113 and 2021122 Combined Tax Rolls and the SBE Non -Unitary Tax Roll (Preliminary)
158
City of La Quinta
Property Tax Levies and Collections (Table 14)
Year Ended June 30, 2022
Collections within the Fiscal
Year of Levy
Total Collections to Date
Fiscal Year
Taxes Levied
Collections in
Ended June
for the Fiscal
Percent of
Subsequent
Percent of
30
Year (1)
Amount
Levy
Years (2)
Amount (3)
Levy
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�4i
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%
2022
7,291,506
7,140,010
97.92%
163,569
7,303,579
100.17%
$8
$7
$6
$5
$4
$3
$2
$1
$0
Property Tax Collections
(in millions)
2013 2014 2015 2016 2017 2018 2019 2020(4) 2021 2022
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
159
Governmental Activities:
Reimbursement Agreement
Capital leases
USDA Loan
Provident Savings Loan
Notes Payable- Eisenhower Drive Property
Developer Agreement
City Hall Lease Revenue Bonds
Total Governmental
Business -type Activities:
Capital Leases
Total Business -Type Activities
City of La Quinta
Ratios of Outstanding Debt by Type (Table 15)
Year Ended June 30, 2022
Fiscal Year Ended
2013 2014 2015 2016 2017
71,045
129,063
103,869
155,395
530,163
702,105
686,345
668,933
649,698
628,448
1,441,096
1,405,755
1,367, 344
1,325,596
1,280,221
-
-
-
-
2,250,000
3,425,000
2,930,000
2,405,000
1,850,000
1,265,000
5,639,246
5,151,163
4,545,146
3,980,689
5,953,832
43,736
-
-
-
43,736
-
-
-
Total Primary Government
5,682,982
5,151,163
4,545,146
3,980,689
5,953,832
Population - State Department of Finance January 1
38,401
39,032
39,694
39,977
40,677
Number of Households
23,612
23,871
24,150
24,432
24,544
Median Household Income
$ 111,077
$ 109,365
$ 97,526
$ 99,157
$ 104,749
Percentage of Personal Income
0.22%
0.20%
0.19%
0.16%
0.23%
Debt Per Capita
148
132
115
100
146
Notes:
(2) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Leases for business -type activities were added in FY 2022 as a result of GASB 87.
Source: City of La Quinta; HDL, Coren & Cone
160
City of La Quinta
Ratios of Outstanding Debt by Type (Table 15)
Year Ended June 30, 2022
Fiscal Year Ended
2018
2019
2020
2021
2022
Governmental Activities:
$ -
$ -
$ -
$ -
$ - Reimbursement Agreement
667,035
757,971
761,790
459,275
184,727 Capital leases
-
-
-
-
- USDA Loan
-
-
-
-
- Provident Savings Loan
1,125,000
-
-
-
- Notes Payable- Eisenhower Drive Property
-
-
-
-
- Developer Agreement
650,000
- City Hall Lease Revenue Bonds
2,442,035
757,971
761,790
459,275
184,727 Total Governmental
Business -type Activities:
565,837 Capital Leases (2)
-
-
-
-
565,837 Total Business -Type Activities
2,442,035
757,971
761,790
459,275
750,564 Total Primary Government
41,204
40,389
40,660
41,247
37,860 Population - State Department of Finance January 1
24,643
24,764
24,957
25,177
23,796 Number of Households
$ 107,447 $
117,802 $
120,097 $
121,816 $
119,479 Median Household Income
0.09 %
0.03 %
0.00 %
0.01 %
0.03 % Percentage of Personal Income
59
19
-
11
20 Debt Per Capita
160
140
120
100
80
60
40
20
Debt Per Capita
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
161
City of La Quinta
Ratio of General Bonded Debt Outstanding (Table 16)
Year Ended June 30, 2022
Outstanding General Bonded Debt
Fiscal Year
City Hall
Tax
Percent of
Per Median
Ended June
Lease
Local Agency Allocation
Assessed
Household
30,
Obligation
Bonds Bonds
Total
Value (2)
Income
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%
2022
-
-
0.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
General Bonded Debt as a Percent of Assessed Value
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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.
162
Total Assessed Valuation") $ 15,209,866,340
Overlapping Debt (3)
Overlapping Tax and Assessment Debt
Desert Community College District
Coachella Valley Unified School District
Desert Sands Unified School District (DSUSD)
DSUSD Community Facilities District No. 1
Coachella Valley Water District Assessment District 68
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)
Desert Sands Unified School District COP
Total Overlapping General Fund Debt
Overlapping Tax Increment Debt
Successor Agencies
Total Overlapping Tax Increment Debt
Total Gross Overlapping Debt
Less: Riverside County Supported Obligations
Total Net Overlapping Debt
Direct General Fund Debt
City of La Quinta General Fund Obligations
Total Direct General Fund Debt
Total Net Combined Direct and Overlapping Debt
City of La Quinta
Direct and Overlapping Debt (Table 17)
Year Ended June 30, 2022
Percentage
Outstanding Debt
Estimated Share of
Applicable (2)
6/30/22
Overlapping Debt
16.37%
$ 510,745,000
$ 83,629,386
50.50%
226,567,400
114,409,740
20.10%
389,440,000
78,257,968
88.91%
575,000
511,244
86.46%
810,000
700,286
277,508,624
4.60%
720,218,351
33,101,235
4.60%
820,060,000
37,689,958
50.50%
32,665,000
16,494,845
20.10%
19,505,000
3,919,530
91,205,568
62.01%
484,463,028
300,438,863
Notes:
Ili Total assessed valuation is from the Equalized Assessor report which includes homeowner exemptions.
669,153,055
669,153,055
750,564 750,564
750,564
s 669,9u3,o19
izi 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.
i3i 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.
163
City of La Quinta
Legal Debt Margin Information (Table 18)
Year Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016
2017
Assessed valuation 1)
$ 10,274,998,112
$ 10,726,752,603
$ 11,369,346,292
$ 11,930f9O6f878
$ 12,457,435,999
Conversion Percentage
25%
25%
25%
25%
25%
Adjusted assessed valuation (2)
2,568,749,528
2,681,688,151
2,842,336,573
2,982,726,720
3,114,359,000
Debt limit percentage (2)
15%
15%
15%
15%
15%
Debt limit
385,312,429
402,253,223
426,350,486
447,409,008
467,153,850
Total net debt applicable to limit
General obligation bonds (3)
Legal debt margin
Total debt applicable to the
limit as a percentage of debt
limit
$ 385,312,429 $ 402,253,223 $ 426,350,486 $ 447,409,008 $ 467,153,850
0.00/0 0.0% 0.00/0 0.00/0
Notes•
M 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.
0.0%
164
City of La Quinta
Legal Debt Margin Information (Table 18)
Year Ended June 30, 2022
Fiscal Year
2018
2019
2020
2021
2022
$ 12,867,519,997
$ 13,351,737,881
$ 13,980,319,465
$ 14,359,765,558
$ 15,163,622,940
Assessed valuation l
25%
25%
25%
25%
25%
3,216,879,999
3,337,934,470
3,495,079,866
3,589,941,390
3,790,905,735
15%
15%
15%
15%
15%
Debt limit percentage (2)
482,532,000
500,690,171
524,261,980
538,491,208
568,635,860
Debt limit
Total net debt applicable to limit
-
-
-
-
-
General obligation bonds (3)
$ 482,532,000
$ 500,690,171
$ 524,261,980
$ 538,491,208
$ 568,635,860
Legal debt margin
Total debt applicable to the
0.0% 0.0% 0.0% 0.0% 0.0% limit as a percentage of debt
limit
165
City of La Quinta
Pledged -Revenue Coverage (Table 19)
Year Ended June 30, 2022
Local Agency Revenue Bonds (City Hall Project)
Fiscal Year
Less Other
Debt Service
Ended June
Lease
Debt Net Lease
Coverage
30,
Revenue (2)
Payments Revenue
Principal Interest
Ratio (3)
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
-
-
-
-
-
2022
-
-
-
-
-
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) .
166
City of La Quinta
Demographic and Economic Statistics (Table 20)
Year Ended June 30, 2022
Calendar Year
Sources
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
City Land (Sq Miles)
(3)
35.16
35.16
35.71
35.71
35.71
35.71
35.71
35.71
35.71
35.71
Population
(1)(3)
38,261
38,689
39,240
39,769
40,065
40,217
40,389
40,660
41,247
37,860
Mean Household Income (in dollars)
(4)
$111,077
$109,365
$97,526
$99,157
$104,749
$107,447
$117,802
$120,097
$121,816
$119,479
Number of Dwelling Units
(1)
23,612
23,871
24,150
24,432
24,544
24,643
24,764
24,957
25,177
23,796
Persons per Household
(1)
2.58
2.59
2.60
2.62
2.64
2.63
2.68
2.60
2.60
2.60
Per Capita Income
(3)
$43,053
$42,226
$37,510
$37,846
$39,288
$39,999
$42,931
$46,248
$47,986
$52,632
Labor Force
(2)
16,658
16,983
17,483
18,033
18,617
18,917
19,142
19,267
19,083
19,850
Employment
(2)
15,517
16,000
16,675
17,175
17,533
18,000
18,308
17,800
17,483
18,892
Unemployment Rate
(2)
6.85%
5.79%
4.62%
4.76%
5.82%
4.85%
4.36%
7.61%
8.44%
4.83%
Median age
(3)
43.6
44.8
45.1
45.3
45.7
46
46.4
47.1
47.9
48.6
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
27,000
24,500
22,000
19,500
17,000
Mean Household Income
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Number of Dwelling Units
MI Jt3 111E 14-'bF[�ZTFYi11ItiI3kii)11i1)14 1i*M
Unemployment Rate
2022
2021
2020
2019
jp
i
2018
-
2017
I
2016
2015
2014
2013
0.00% 1.00%
2.00%
3.00%
4.00%
5.00%
6.00% 7.00% 8.00% 9.00%
Per Capita Income and Unemployment
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
-Per Capita Income -Unemployment Rate
Sources:
(1) State of California Department of Finance; State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties and the State,
Sacramento, California, released May 2022. The estimates incorporate 2020 Census counts.
(2) State of California Employment Development Department Website. Previous years' data updated in 2018119 to utilize 12-month average and final numbers. Rise in
average unemployment rate for 2019120 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.
167
City of La Quinta
Principal Employers (Table 21)
Year Ended June 30, 2022
Fiscal Year 2021-22
Fiscal Year 2012-13
Percent of
Percent of
Number of
Total
Number of
Total
Employer
Activity
Employees
Employment
Rank
Employees
Employment
Desert Sands Unified School District
Government
1
2,862
14.42%
2
1,176
7.21%
La Quinta Resort & Club/ PGA West '
Hotel & Golf Resort
2
1,400
7.05%
1
2,346
14.39%
Wal-Mart Super Center
Retailer
3
300
1.51%
3
340
2.09%
Costco
Retailer
4
297
1.50%
4
244
1.50%
Home Depot
Retailer
5
181
0.91%
6
160
0.98%
Lowe's Home Improvement
Retailer
6
150
0.76%
-
0.00%
Imperial Irrigation District
Utility Company
7
132
0.66%
8
140
0.86%
Target
Retailer
8
132
0.66%
7
148
0.91%
Vons
Grocery Store
9
104
0.52%
10
98
0.60%
Stater Bros
Grocery Store
10
90
0.45%
9
119
0.73%
In N Out
Fast Food
11
84
0.42%
-
0.00%
Rancho La Quinta
Golf Resort
12
68
0.34%
5
209
1.28%
Tradition Golf Club
Golf Resort
11
95
0.58%
Total employment listed 5,800 29.22% 5,075 31.13%
Total City Employment - July 1 19,850 16,300
Notes:
il> 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
168
City of La Quinta
Full-time City Employees (Table 22)
Year Ended June 30, 2022
Fiscal Year
Function
2013
2014 t'I
2015
2016
2017
2018
2019
2020
2O21t3I
2022
Administration -City Mgr. Office
11.00
8.00
7.00
4.00
4.00
5.00
7.00
8.00
8.00
8.00
City Clerk
5.00
4.00
4.00
3.00
3.00
5.00
5.00
4.00
4.00
4.00
Finance
8.00
7.00
8.00
7.00
7.00
8.00
8.00
8.00
9.00
9.00
Community Services
10.75
12.00
11.65
-
-
-
-
-
-
-
Building and Safety
21.00
-
-
-
-
-
-
-
-
-
Planning and Development
9.00
-
-
-
-
-
-
-
-
-
Community Development
-
19.00
20.00
-
-
-
-
-
-
-
Public Works
23.25
20.00
21.35
-
-
-
-
-
27.00
27.00
Community Resources (a)
-
-
-
18.00
18.00
18.00
18.00
23.00
19.00
20.00
Design and Development (n>
-
-
-
27.00
27.00
29.00
32.00
33.00
18.00
18.00
Facilities (`)
-
-
-
19.00
19.00
19.00
19.00
19.00
-
-
Total
88.00
70.00
72.00
78.00
78.00
84.00
89.00
95.00
85.00
86.00
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
Total Full -Time City Employees
2013 2014(1) 2015 2016(2) 2017 2018 2019 2020 2021(3) 2022
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.
169
City of La Quinta
Operating Indicators (Table
23)
Year
Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016
2017
2018
2019
2020t"
2021"'
2022
Finance:
Number of Animal Licenses Processed cii
1,505
1,602
1,374
-
-
-
-
-
-
-
NumberofAccounts Payable Checks Processed
3,576
3,696
3,833
4,153
3,835
3,621
3,879
3,855
2,998
3,014
Number of Investment purchases
30
22
21
22
20
61
56
49
32
93
Par value of investments
$ 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
$ 223,319,336
Number of cleared checks
3,899
3,922
4,004
4,167
3,932
3,813
3,875
3,962
2,977
2,989
Number of bank wires, drafts, and EFTsl41
58
58
54
41
44
64
68
57
412
504
City Clerk:
Contracts Processed
346
289
238
282
199
243
266
297
217
232
Documents Notarized
301
334
203
157
99
128
74
90
184
256
Documents Recorded with County
125
183
106
112
56
67
45
39
43
150
Subpoenas and Claims Processed
15
21
37
10
8
12
18
15
15
18
Records Requests Fulfilled and Recorded
558
601
580
518
743
572
602
633
847
1,205
Documents Scanned to Electronic Archives I'I
28,798
34,671
164,847
233,182
214,384
593,991
970,894
753,291
190,113
176,426
Public Works:
Encroachment permits issued
124
109
127
54
123
121
140
121
138
196
Request for services l"
740
1322
1,261
3,440
3,207
2,652
2,194
1,938
2,041
1,732
Community Development:
Number of Active Business Licenses I'�
3,520
3,998
4,452
3,368
3,681
3,707
3,806
3,592
3,267
3,414
Permits:
Single family Detached
83
147
176
108
92
142
122
218
157
467
Single family Attached
-
0
4.00
7.00
7
6
14
1
0
27
Residential Pool
162
204
255
217
170
211
243
237
337
424
Wall/Fence
167
220
328
257
209
268
223
312
244
412
Other
1,042
1,158
1,316
1,230
1,258
1,571
1,655
1,401
1,619
2,192
Garage Sale Permits l'I
1,404
1,255
1,290
1,109
1,024
928
959
604
351
461
Total Permits
2,858
2,984
3,369
2,928
2,760
3,126
3,216
2,773
2,708
3,983
Code Compliance "':
Animal Control Incidents Handled I'I
3,206
1,645
1,085
-
-
-
52
42
30
10
Vehicle abatements
99
88
85
255
212
224
184
149
79
114
Weed abatements
1,404
43
45
57
114
128
80
65
53
74
Nuisance abatements/Property Maintenance
1,668
730
557
1,037
1,180
1,122
921
821
403
952
All Other ai
-
-
-
1,432
806
888
1,159
1,591
1,511
1,320
Community Services:
Library activities:
Number of Visits
63,955
71,874
73,924
182,913
190,747
152,725
132,947
84,042
25,950
65,259
Books checked out
220,690
329,154
263,047
234,340
254,323
250,636
241,450
122,084
63,198
149,001
Cards Issued
2,966
2,035
2,418
2,179
2,248
2,276
2,251
919
886
1,610
Number of School Children Visiting
737
1,539
1,562
2,947
4,680
4,528
3,303
3,708
10,221
2,435
Volunteer Hours
2,226
1,340
1,917
2,169
2,248
2,314
2,138
1,173
0
524
Senior Center/Wellness Center I'I
Number of visits
9,350
11,500
23,871
62,820
74,141
87,294
82,477
41,934
4,725
20,065
Volunteer Hours
2,233
2,745
1,279
1,585
1,420
1,333
1,148
506
0
0
Recreation activities:
Participants:
Leisure Classeslsl
1,475
1,177
1,322
2,241
2,278
2,168
2,039
864
269
15,538
Special events
5,970
5,927
6,460
8,185
7,783
10,449
12,650
4,950
390
4,685
Adult Sports
3,865
5,878
5,487
7,192
6,695
6,136
5,932
3,644
0
492
Golf course:
Golf rounds played
46,352
43,610
41,904
45,104
43,085
42,590
44,949
33,407
39,073
44,329
Average Green fee
$ 67.44
$ 66.83
$ 69.65 $
66.87 $
66.80
$ 71.88
$ 72.02
$ 71.23
$ 79.63
$ 92.53
Planning and Development:
Number of residential units approved
228
494
208
40
120
-
114
92
212
132
Commercial square footage approved
0
113,149
79,092.00
13,000
391,914
7,599
102,552
3,162
152,133
15,537
Notes:(') 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.
czl "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.
Or 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.
14iPreviously reported only wires, has been updated to include all fortes of electronic
payment types.
t'ILeisure Classes line includes X-park and Fritz
Burns Pool activity participants
starting in 2021-22.
170
City of La Quinta
Capital Asset Statistics by Function (Table 24)
Year Ended June 30, 2022
Fiscal Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Public Works:
Streets (miles)
128
128
128
128
128
128
128
129
129
129
Bikepaths (miles) il)
22
22
34
34
36
36
36
79.1
81.1
81.1
Streetlights (2)
269
277
277
281
372
372
372
372
372
372
Traffic signals
52
54
54
54
54
54
54
50
50
50
Traffic signs
2,984
3,018
3,018
3,018
5,758
5,758
5,408
4,808
4,808
4,808
Bridges
12
13
13
13
13
13
13
13
13
13
Parks and Recreation:
Parks(')
13
13
13
13
13
13
13
14
14
17
Park Acreage
218
218
218
218
218
218
218
-
-
-
Undeveloped Park Acreac
40
40
40
40
40
40
40
-
-
-
City -Owned Acree(3)
238
238
235
City -Improved Acres(3)
114
114
111
Hiking Trails (miles)
17
17
17.4
17.4
Senior/Wellness Center
1
1
1
1
1
1
1
1
1
1
Museum
1
1
1
1
1
1
1
1
1
1
Library
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:
Municipal golf courses
1
1
1
1
1
1
1
1
1
1
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.
(1) 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.
i3)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. In 2021-22, the City added
one public park, the X-park. Additionally, the park count now includes two sports fields owned by Desert Sands Unified School District but
maintained by the City. These parks were already included in the "city -improved acres" line.
171
City of La Quinta
Schedule of Insurance in Force (Table 25)
Year Ended June 30, 2022
Company Name Policy Number Coverage Limits Term Premium
National Union Fire Insurance 01-424-97-61 Crime, Forgery, Fraud $1 Million 07/01/21 to 07-01-22 $1,800
Alliant Insurance Services, Inc
California Self -Insured All Risk Property Insurance $25 Million 07/01/21 - 07/01/22 $144,771
Joint Powers Pool Including Auto Physical Damage, Single Limit per Occurrence
Insurance Authority Terrorism, Boiler & Machinery subject to other sublimits
NFP Property & Casualty W14D19220901 Earthquake $10 Million 03/09/22 to 03/09/23 $175,980
Beazley Insurance Services Real & Personal Property Per Occurence
ncluding Contingent Tax Interruption
California
Self -Insured
Comprehensive General $30 Million 07/01/21 - 07/01/22 $446,349
Joint Powers
Pool
and Automobile Liability Single Limit per Occurrence
Insurance Authority
California
Self -Insured
Workers' Compensation $10 Million 07/01/21 -07/01/22 $146,173
Joint Powers
Pool
Per Occurrence
Insurance Authority
172