HomeMy WebLinkAbout05 CAFR Financial Rprt FYE 06-30-2020 STAFF REPORT
CITY OF PALM DESERT
PALM DESERT HOUSING AUTHORITY
FINANCE DEPARTMENT
MEETING DATE: January 28, 2021
PREPARED BY: Jose Luis Espinoza, CPA, Assistant Finance Director
REQUEST: Receive and file the City of Palm Desert audited financial report for the
fiscal year ended June 30, 2020
Recommendation
By Minute Motion, that the City Council receive and file the audited Comprehensive
Annual Financial Report (CAFR) for the City of Palm Desert for the fiscal year
ended June 30, 2020.
Strateqic Plan Obiective
Not applicable.
Committee Recommendation
The Finance Committee received the City of Palm Desert audited reports at their January 26,
2021 meeting, and recommended that the report be received and filed by the City Council.
Backqround
Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal
year ended June 30, 2020, for the City of Palm Desert, which includes the Palm Desert Housing
Authority, in accordance with generally accepted auditing standards. In the auditor's opinion, the
basic financial statements present fairly, in all material respects, the financial position of the City
of Palm Desert as of June 30, 2020, and the results of its operations and the cash flows of its
proprietary funds for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In conducting their audit, the auditors test the City's internal controls. Attached is the Report on
Infernal Controls over Financial Reportinq and on compliance and ofher matters based on an
audif of Financial Stafemenfs performed in accordance with Government Auditing Standards.
The CAFR was submitted for the Certificate ofAchievemenf for Excellence in Financial Reporting
from the Government Finance Officers Association. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements, as it has for the past 23 years.
W:\Staff Reports-Shared 2\Staff Reports 01-28-2021\4-City Clerk-01-28-2021\05 CAFR STAFF REPORT\O1 SR-Council
audit 2020 CAFR.docx
Staff Report
Receive and file CAFR for Fiscal Year ended June 30, 2020
January 28, 2021
Page 2 of 2
Staff requests that the City Council receive and file the audited financial statements for the fiscal
year ended June 30, 2020.
Fiscal Analysis
There is no fiscal impact associated with this action.
LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT
REVIEW CITY MANAGER
N/A N/A
Sla..,f.�'�'l. �loou Sla..,f.�'m. ?'yloo-w
Robert W. Hargreaves Janet M. Moore Janet M. Moore Andy Firestine
City Attorney Director of Finance Director of Finance Assistant City Manager
Interim City Manager Randy Bynder: R 'B v►.de�r
ATTACHMENTS: 1. City of Palm Desert audited financial report for fiscal year ended
June 30, 2020. (Comprehensive Annual Financial Report)
2. Auditor's letter to City Council
3. Independent Auditors' Report on Internal Control over Financial
Reporting and on Compliance and Other Matters based on an
Audit of Financial Statements Performed in Accordance with
Govemment Auditing Standards
4. Appropriations Limit Worksheet no. 6
CiTY COUNCTL,ACTION
APPROVED_ DENiED
RECEIVED �' F��e OTHF.R
111FF,TiNG DATE 1' 2 � 202'�
AYE5:� ���K��dna Y1.Nesfi�de�c�ni�n,�lla�l�lly
NOES: �ne
AIiSENT• � -
ABSTAIN: �h
VERIFIED BY � S1'S
Original on File with City Clerk's Office
W:\Staff Reports-Shared 2\Staff Reports 01-28-2021\4City Clerk-01-28-2021\05 CAFR STAFF REPORT�01 SR-Council audit
2020 CAFR.dacx
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2020
P�epa�ed by the Finance Department
City Treasurer/Director of Finance
Janet M. Moore
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance Staff
(in alphabetical order by positions and last names)
ACCOUNTANT ACCOUNTING TECHNICIAN MANAGEMENT SPECIALIST II
Jenny Weill Mitchell Arbaugh Patty Leon
ACCOUNTING SPECIALIST ACCOUNTING TECHNICIAN SENIOR FINANCIAL ANALYST
James Bounds Horacio Celaya Anthony Hernandez
ACCOUNTING SPECIALIST ACCOUNTING TECHNICIAN SENIOR MANAGEMENT ANALYST
Sharon Christiansen Diana Leal Veronica Tapia
DEPUTY CITY TREASURER
Thomas Metz
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TH IS PAG E I NTENTIONALLY LEFT BLAN K
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letterof Transmittal .................................................................................................................................i
GFOA Certificate of Achievement for Excellence in Financial Reporting...............................................v
Listof Principal Officials.........................................................................................................................vi
OrganizationalChart.............................................................................................................................vii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT..................................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................................5
BASIC FINANCIAL STATEMENTS
Statementof Net Position...............................................................................................................17
Statementof Activities....................................................................................................................18
Balance Sheet—Governmental Funds ..........................................................................................22
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position .................................................................................................25
Statement of Revenues, Expenditures and Changes in
Fund Balances—Governmental Funds.......................................................................................26
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities...........................................................................................................29
Statement of Net Position—Proprietary Funds..............................................................................30
Statement of Revenues, Expenses and Changes in Fund
NetPosition— Proprietary Funds................................................................................................31
Statement of Cash Flows— Proprietary Funds...............................................................................32
Statement of Fiduciary Net Position— Fiduciary Funds .................................................................33
Statement of Changes in Fiduciary Net Position— Fiduciary Funds..............................................34
Notes to Basic Financial Statements..............................................................................................35
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Plan—Agent Multiple-Employer Schedule of Changes
in Net Pension Liability and Related Ratios.............................................................................96
Miscellaneous Plan-Agent Multiple— Employer Schedule of Plan Contributions .........................97
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios................................98
Schedule of Plan Contributions—OPEB........................................................................................99
Budgetary Comparison Schedule by Department—General Fund..............................................100
Budgetary Comparison Schedule—Measure A...........................................................................102
Budgetary Comparison Schedule— Prop A Fire Tax...................................................................103
Budgetary Comparison Schedule—Housing Asset Fund.............................................................104
Budgetary Comparison Schedule—Housing Authority................................................................105
Notes to Required Supplementary Information............................................................................106
SUPPLEMENTARY SCHEDULES
Combining Balance Sheet—Other Governmental Funds............................................................108
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Governmental Funds..............................................................................109
Other Governmental Funds—Special Revenue Funds ...............................................................111
Combining Balance Sheet—Other Special Revenue Funds .......................................................114
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Special Revenue Funds...................................................................120
Budgetary Comparison Schedules—Special Revenue Funds:
TrafficSafety..........................................................................................................................125
GasTax..................................................................................................................................126
HousingMitigation Fees.........................................................................................................127
Community Development Block Grant...................................................................................128
ChildCare Program ...............................................................................................................129
Public Safety Police Grants ...................................................................................................130
NewConstruction Tax............................................................................................................131
PlannedDrainage ..................................................................................................................132
Parks and Recreational Facilities...........................................................................................133
TrafficSignals ........................................................................................................................134
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page
Number
Fire Facilities Restoration ......................................................................................................135
Recycling................................................................................................................................136
Energy Independence Loan...................................................................................................137
AirQuality Management.........................................................................................................138
AquaticCenter.......................................................................................................................139
CannabisCompliance............................................................................................................140
EI Paseo Assessment District................................................................................................141
Landscape and Lighting Districts Nos. 1-17..........................................................................142
Affordable Housing Fund .......................................................................................................143
Other Governmental Funds—Capital Projects.............................................................................145
Combining Balance Sheet—Other Capital Projects Funds .........................................................146
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Capital Projects Funds.....................................................................150
Budgetary Comparison Schedules—Capital Project Funds:
CapitalProperties...................................................................................................................154
Capital Projects Reserve........................................................................................................155
DrainageFacilities..................................................................................................................156
Economic Development.........................................................................................................157
Parks and Recreational Facilities...........................................................................................158
Artin Public Places................................................................................................................159
Signalization...........................................................................................................................160
CapitalGolf............................................................................................................................161
Buildings.................................................................................................................................162
Other Governmental Funds— Debt Service Funds......................................................................163
Balance Sheet—Other Debt Service Fund ..................................................................................164
Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Debt Service Fund...........................................................................165
Budgetary Comparison Schedule— Debt Service Fund:
City Highland Undergrounding...............................................................................................166
InternalService Funds..................................................................................................................167
Combining Statement of Net Position— Internal Service Funds..................................................168
Combining Statement of Revenues, Expenses and Changes
In Fund Net Position— Internal Service Fund........................................................................169
Combining Statement of Cash Flows— Internal Service Funds...................................................170
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page
Number
AgencyFunds...............................................................................................................................171
Combining Statement of Assets and Liabilities—All Agency Funds............................................173
Combining Statement of Changes in Assets and
Liabilities—All Agency Funds................................................................................................174
STATISTICAL SECTION
Description of Statistical Section.........................................................................................................177
Financial Trends:
NetPosition by Component..........................................................................................................179
Changesin Net Position...............................................................................................................180
Fund Balances of Governmental Funds.......................................................................................183
Changes in Fund Balances of Governmental Funds....................................................................184
Graphs—Changes in Fund Balances of Governmental Funds....................................................185
Supplemental Historical General Fund Revenues .......................................................................186
Supplemental Graph— Historical General Fund Revenues.........................................................187
Supplemental Historical General Fund Expenditures...................................................................188
Supplemental Graph— Historical General Fund Expenditures ....................................................189
Supplemental Historical General Revenue and Expenditures Per Capita...................................191
Revenue Capacitv:
Assessed Value and Estimated Actual Value of Taxable Property..............................................192
Historical Net Assessed Taxable Values Citywide and
Graph—Assessed Valuation Growth........................................................................................193
Supplemental FY 2020 and 2019 Breakdown of Basic 1% Property
Tax Rate Not In Redevelopment Project Area..........................................................................194
Property Tax Rates Direct and Overlapping Property Tax Rates ................................................195
Principal Property Taxpayers .......................................................................................................196
Property Tax Levies and Collections............................................................................................197
Supplemental Top 25 Sales Tax Generators and
Graph— Historical Sales Tax Trends........................................................................................198
Debt Capacitv:
Ratios of Outstanding Debt by Type.............................................................................................199
Ratios of General Bonded Debt Outstanding...............................................................................200
Supplemental Special Assessment Information...........................................................................201
Direct and Overlapping Government Activities Debt....................................................................202
Legal Debt Margin Information.....................................................................................................203
Pledged-Revenue Coverage........................................................................................................204
Demographic and Economic Information:
Demographic and Economic Statistics.........................................................................................205
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page
Number
PrincipalEmployers......................................................................................................................206
Supplemental Miscellaneous Statistics........................................................................................207
O�eratinq Information:
Full-Time Equivalent City Government Employees by Function/Program...................................208
Operating Indicators by Function/Program...................................................................................209
Capital Asset Statistics by Function/Program ..............................................................................210
SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION
Redevelopment Agency Project Areas Map.................................................................................212
Tax Allocation Bond Issue Information.........................................................................................213
Historical Tax Increment— Redevelopment Property
TaxTrust Fund Summary......................................................................................................214
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December 16, 2020
Residents of Palm Desert,
Honorable Mayor and Members of the City Council
The Finance Department is pleased to present the Comprehensive Annual Financial Report (CAFR) of the City
of Palm Desert for the fiscal year ended June 30, 2020.
The financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and
the Governmental Accounting Standards Board (GASB). We believe the data, as presented, is accurate in all
material respects and is presented in a manner that fairly represents the financial position and changes in financial
position of the City as measured by the financial activity of each of its funds. We also believe that all disclosures
necessary to enable the reader to fully understand the City's financial activities have been presented.
Responsibility for the accuracy, completeness and reliability of the information contained in this report rests with
the City.
The City of Palm Desert conducts an annual audit, which is performed by an independent certified public
accountant. The independent audit of the City's financial statements for fiscal year ended June 30, 2020 was
conducted by Lance Soll & Lunghard, LLP. The auditor's unmodified opinion on the basic financial statements
is included in the Financial Section of this report. This is the most favorable opinion.
As part of the City's annual audit engagement, the auditors reviewed the City's internal control structure as well
as compliance with applicable laws and regulations. Because the cost of internal control should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute assurance, that the financial
statements are free of any material misstatements. The results of the City's annual audit for fiscal year ended June
30, 2020 provided no instances of material weaknesses in connection with the internal control structure or
significant violations of applicable laws and regulations.
As recipients of federal, state and county financial resources,the City may be required to undergo an annual single
audit. However, far the fiscal year ended June 30, 2020, the City is not required to have a single audit performed.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements
this letter of transmittal and should be read in conjunction with it.
i
PROFILE OF THE CITY OF PALM DESERT
Located in Riverside County in the geographical center of the Coachella Valley, Palm Desert was incorporated
on November 26, 1973, as a General Law City. On November 4, 1997,voters overwhelmingly approved Measure
LL adopting a city charter.
Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs
including: bidding and contracting procedures; regulation of parks, libraries, and other facilities; certain fees;
imposition of taXes; municipal zoning; salaries of officials and employees; municipal utilities; and municipal
election procedures.
The City operates under a Council-Manager form of government. The City Council consists of five members
elected by the residents of the City. Council terms are four years and elections occur in November during even-
numbered years. Each December, the City Council selects the Mayor from among its members for a one-year
term. The City Council appoints the City Manager and the City Attorney.
The City operates as a "contract city," primarily utilizing agreements with other governmental entities, private
firms, and individuals to provide many services. Contracted services include: police protection through the
County of Riverside; fire protection through Cal-Fire; animal control; road maintenance and construction
services; legal services; landscape maintenance; and recreation program services. Palm Desert is a member of the
California Joint Powers Insurance Authority that provides insurance coverage for the City. Waste and recycling
services are provided under a franchise agreement with Burrtec Waste and Recycling Services. The City provides
traditional municipal,public enterprise, and housing services as follows:
Municipal Services
Public improvements, infrastructure and maintenance �
Public art and community promotion �����
R�'A.�= R .��
Planning, zoning,building and engineering � �� �
:�,l..� `o
Housing and community development ��. �� �� �:���{ ��
Code compliance = � �;; ;��.,,
��r�;.
Economic development and business advocacy ��j '" � .. , .,,���'
Legislative, city clerk, visitor's services,public ° ��.� �':�� ' �, � ` ��� �� �=�
a� r`�',. r x �,,
information general administration fiscal services ` ' � � ��� .� t'�� "� '���
I I 7 '��y i� .
human resources, and risk management �,_ _ ."����4�: __ '„ ���
Building permitting, inspections and services u . � .
- - �_
Palrn Desert Crvrc Cerater
Public Enterprise Services
Golf course Blended & Discrete Component Units
Office complex PD Housing Authority
Internal service PD Financing Authority
PD Recreational Facilities Corporation
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. Activities of the General, Special Revenue, Debt Service, and
Capital Project Funds are included in the annual appropriated budget. Budgetary amounts for Debt Service,
Capital Projects, and certain Special Revenue Funds are adopted annually;however,these budgets are considered
to be long-term in nature.
ii
The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund level as
a means of accomplishing budgetary control. At each fiscal year end, open encumbrances are carried over to the
new fiscal year. Purchase orders are reviewed to ensure that funds are available and that requests are properly
authorized prior to being released to vendors.
The adopted budget for �scal year 2019-2020 was prepared in accordance with accounting principles generally
accepted in the United States of America. As reflected in the statements and schedules included in the financial
section of this report, the City continues to meet its responsibility for sound financial management.
LOCAL ECONOMY
The City comprises an area of approXimately 26 square miles and, as of January 1, 2020, has a population of
52,986 according to data provided by the California Department of Finance. In addition to permanent residents,
approximately 20,000 seasonal residents make Palm Desert their home for three to six months each year.
The City has cultivated a sound foundation of general fund revenues including sales tax,transient occupancy tax,
licenses and permits, property tax, and investment earnings. The City's main revenue sources are transient
occupancy taxes and sales taX. Due to the timing of the City's incorporation, in 1983, and the implementation of
Proposition 13, the City receives less than 7 percent of property taxes; therefore, the City relies heavily on sales
taX and transient occupancy taX.
As a community where economic, environmental, social, and cultural development flourishes, Palm Desert is a
much sought-after place to visit and reside. Palm Desert is the first city in Riverside County to create a public art
program and is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts,
a 1,127-seat theater that hosts a wide variety of A-list entertainers, touring theatrical productions and arts-related
educational programs; the Living Desert Zoo and Gardens, a 1,200-acre facility containing a wide array of plants
and animals from desert regions around the world; and the Palm Desert Art in Public Places program, a museum
without walls, featuring more than 150 works of art on permanent display throughout the city.
Palm Desert's active, five-star accredited Chamber of Commerce has more than 1,125 members who work to
promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community.
Noted for its eXtensive array of retail options,including the , -
world-famous upscale shopping destination of El Paseo,
Palm Desert is home to a variety of malls and retail centers . < '''�� � � -�'
��.
including Westfield Palm Desert, Desert Crossing, The � � - -� '�'-=-�— _:� ��.��E:„�,�W;�, ��-._
s---
Gardens on El Paseo, and El Paseo Village. _ Ir ,q „� ' ''�';,�.'�.1�''r ''�i�^�
',�.�..�.� �_ �n. .� . a �:,t.� �,:� � +�. Ir�:r
� . �.. i '
The internationally acclaimed Desert Willow Golf Resort, ., � '���#���;,,���
� ..._ . �
one of the nation's premier municipal courses, boasts 36 `- -:�-� ��•���- -
holes of championship golf and stunning scenery in close 1'�'�-,
„� ��`�`R�
proximity to first-class hotel accommodations and fine ` ,�,� ,������_ '�""�'*��"���'`�'�,��;�
Clllllllg. Desert��'rllo�i�Go1f�Resort
In addition to being the home of the Coachella Valley's only community college, College of the Desert, Palm
Desert is the location of satellite campuses for both the University of California, Riverside, and California State
University, San Bernardino, the region's only public, four-year university.
iii
The State of California Employment Development Department Labor Market Information Division reported that
the City of Palm Desert had an unemployment rate of 17.2% compared to Riverside County, which had a rate of
14.7%. The City, as a resort destination, and its jurisdictional workforce, have been impacted greatly by the
eXtraordinary challenges caused by the worldwide COVID-19 pandemic and the State of California and County-
wide closures that began at the height of the tourist season. The unemployment rate in the City is understandably
higher than in areas that do not rely as heavily on tourism.
LONG-TERM FINANCIAL PLANNING
In June 2020, the City Council approved a total of$33.89 million in funding for various capital improvement
projects for the fiscal year of 2020-2021. Projects include resurfacing streets, sidewalk repairs and construction,
accessibility improvements, street widening, improving drainage areas, park improvements, and improvements
at Desert Willow Golf Resort and Parkview Office Complex.
Certificates of Awards for Outstandin� Financial Reportin�
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 of Palm Desert for its comprehensive annual
financial report for the fiscal year ended June 30, 2019. This was the 23nd consecutive year that the City has
achieved this prestigious award. In order to receive the Certificate of Achievement, a government must publish
an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive
annual financial report 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.
Acknowled�ments
The preparation of this report is attributable to the efficient and dedicated staff of the Finance Department who
are individually recognized on the title page. The Mayor and the City Council are credited for their support in
planning and conducting the operations of the City in a prudent,responsible and progressive manner. Recognition
is also given to all employees of the City of Palm Desert who continue to serve our community with commitment
and dedication throughout the year. Our greatest appreciation goes to you, the residents of Palm Desert, for your
continued support, input, and guidance in helping us serve you better, thus preserving our city's quality of life
and reputation for innovation and leadership.
Respectfully submitted,
. ,
�.. � �-'� ? '�-.�����`�L���
. _ _,�- �--- �--���
Randy Bynder Janet M. Moore
Interim City Manager Director of Finance
JLE:jIe
iv
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Government Finance Officers Association
Certificate of
Ach�evement
for Excellence
in Financial
Reporting
Presented to
City of Palm Desert
California
For its Comprehensive Annuat
Financial Report
For the Fiscal Year Ended
June 30, 2019
P
Executive Director:'CEO
v
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2020
City Council - Manager Form of Government
CITY COUNCIL
GINA NESTANDE
Mayor
KATHLEEN KELLY
Mayor Pro-Tempore
JAN C. HARNIK SABBY JONATHAN SUSAN MARIE WEBER
Council Member Council Member Council Member
CITY ADMINISTRATION
RANDY BYNDER
Interim City Manager
City Attorney - Best, Best& Krieger, LLP Robert W. Hargreaves
Director of Finance/City Treasurer Janet M. Moore
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
RANDY BYNDER
Interim Executive Director
vi
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INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of City of Palm Desert, California, (the City) as of and for the year ended June 30, 2020, and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of
Palm Desert, California, as of June 30, 2020, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the managemenYs
discussion and analysis, the budgetary comparison schedules for the general fund, measure a fund, prop
a fire tax fund, housing asset fund, housing authority fund, the schedule of changes in net pension liability
and related ratios, the schedules of employer contributions and the schedule of changes in net
OPEB liability/(asset) and related ratios on pages 98 and 99 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with managemenYs responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements, budgetary schedules and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate 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 nonmajor fund financial statements
and schedules are fairly stated, in all material respects in relation to the basic financial statements as a
whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2
LS L��::
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Other Reporting Required by Government Auditing Standards
In accordance with GoUernment Auditing Standards, we have also issued our report dated
December 16, 2020, on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
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December 16, 2020
3
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TH IS PAG E I NTENTIONALLY LEFT BLAN K
4
CITY OF PALM DESERT
MANAGEMENT'S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Palm Desert's financial performance for the fiscal year ended
June 30, 2020 provides: a comparison of current year to prior year ending results based on the
government-wide financial statements; an analysis of the City's overall financial position and results of
operations to assist users in evaluating the City's financial position; a discussion of significant changes that
occurred in the funds; and significant budget variances. In addition, it describes the activities during the
year for capital assets and long-term debt. We end our discussion and analysis with a description of known
facts, decisions, and conditions that are expected to have a significant effect on the financial position or
results of operations. Please read it in conjunction with the transmittal letter and the City's financial
statements.
FINANCIAL HIGHLIGHTS
• The City's total assets and deferred outflows exceeded its liabilities and deferred inflows by
$782.10 million (net position).
• The City's governmental activities net position decreased $13.29 million, and the net position of the
business-type activities decreased $0.60 million.
• During the year, the City's revenues were $93.22 million and expenses were $106.51 million in its
governmental activities, excluding transfers and special items,compared to fiscal year 2019,where
revenues were $101.84 million and expenses were $92.87 million.
• In the City's business-type activities, expenses were $0.60 million more than the $8.86 million
generated in golf course green fees, merchandise sales, rental income and other revenues
compared to the prior year, where business-type activities revenues were $1.24 million more than
its expenses.
• The City's governmental activities program revenues and general revenues decreased by
$8.62 million, while program expenses increased $13.64 million.
• Business-type activities revenues decreased $1.95 million, from $10.81 million to $8.86 million.
Expenses decreased from the $9.57 million to$9.46 million.
• The City kept its General Fund expenditures within spending limits by$2.64 million. The revenues
available for expenditures were under budget by$0.20 million.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and
Statement of Activities (on pages 17, 18 and 19) provide information about the activities of the City as a
whole and present a long-term view of the City's finances. The fund financial statements start on page 22.
For governmental activities, these fund statements tell how these services were financed in the short term
as well as what remains for future spending. The fund financial statements also report the City's operation
in more detail than the government-wide statements by providing information about the City's most
significant funds and other funds. The remaining fiduciary fund statement provides financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the
government.
5
REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:
Our analysis of the City as a whole begins on page 17. One of the most important questions asked about
the City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities?" The
Statement of Net Position and the Statement of Activities report information about the City as a whole and
about its activities in a way that answers this question. These statements include all assets and liabilities
of the City using the accrual basis of accounting, which is similar to the accounting used by most
private-sector companies. All of the current year's revenues and expenses are taken into account
regardless of when cash is received or paid.
These two statements report the City's net position and changes in them. Net position is the difference
between total assets and deferred outflows of resources less liabilities and deferred inflows, which is one
way to measure the City's financial health, or financial position. Over time, increases or decreases in the
City's net position are an indication of whether its financial health is improving or deteriorating. Other
non-financial factors should be considered, however, such as changes in the economy that could cause a
decrease in consumer spending.
In the Statement of Net Position and the Statement of Activities, we separate City activities as follows:
Governmental activities—Most of the City's basic services are reported in this category, including general
administration (city manager, city clerk, finance, etc.), housing and redevelopment, public safety
(police and fire protection), public works, parks, recreation and culture departments. Property taxes,
sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants,
contributions from other agencies, and other revenues finance these activities.
Business-type activities—The City charges customers to cover all or most of the cost of certain services
it provides. The City's municipal golf course, Desert Willow, and the City's Parkview Office Complex
activities are reported in this category.
Component unit activities — The City includes one separate legal entity in its report — the Palm Desert
Recreational Facilities Corporation. Although legally separate, this "component unit" is important because
the City is financially accountable for it.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS
Fund Financial Statements:
The fund financial statements provide detailed information about the most significant funds and other funds,
not the City as a whole. Some funds are required to be established by State law and by bond covenants.
However, management established many other funds to help it control and manage money for particular
purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other
resources. The City has three types of funds: governmental, proprietary and fiduciary.
Governmental funds— Most of the City's basic services are reported in governmental funds, which focus
on how money flows in and out of those funds and the balances left at year-end that are available for
spending.These funds are reported using an accounting method called modified accrual accounting,which
measures cash and all other financial assets that can readily be converted to cash. The governmental fund
statements provide a detailed short-term view of the City's general government operations and the basic
services it provides. Governmental fund information helps determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City's programs. The differences of
results in the Governmental Fund financial statements to those in the Government-wide financial
statements are explained in a reconciliation following each Governmental Fund financial statement.
6
Proprietary funds — When the City charges customers for the services it provides, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the Statement of Net Position and the Statement of Activities. The City's enterprise funds are
the same as the business-type activities we report in the government-wide statements, but provide more
detail and information such as a 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 statement because the
resources of those funds are not available to support the City of Palm Desert operations. The accounting
used for fiduciary funds is much like that used for proprietary funds.
THE CITY AS TRUSTEE
Reporting the City's Fiduciary Responsibilities:
The City is the trustee, or fiduciary,for the Successor Agency to the Palm Desert Redevelopment Agency's
(Successor Agency) private-purpose trust fund and for certain agency funds held on behalf of developers
and its employees' retiree service stipend fund. The City's fiduciary activities are reported in separate
Statements of Net Position, Statement of Changes in Net Position, Statement of Assets and Liabilities, and
Statement of Changes in Assets and Liabilities. We exclude these activities from the City's other financial
statements because the City cannot use these assets to finance its operations. The City is responsible for
ensuring that the assets reported in these funds are used for their intended purposes.
THE CITY AS A WHOLE
During the fiscal year ending June 30, 2020, the City's combined net position decreased $13.89 million
from $795.99 million to $782.10 million. A separate review of the net change in the governmental and
business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and
changes in net position (Table 2) of the City's governmental and business-type activities.
7
TABLE 1
NET POSITION
(IN MILLIONS)
As of June 30, 2020 and 2019
Governmental Business-Type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Current and restricted assets $ 344.53 $ 352.80 $ 7.65 $ 7.73 $ 352.18 $ 360.53
Capital assets 424.16 429.73 69.54 70.67 493.70 500.40
TOTAL ASSETS 768.69 782.53 77.19 78.40 845.88 860.93
Deferred outflows of resources 8.82 10.75 - - 8.82 10.75
Long-term liabilities
outstanding 39.29 43.60 1.15 1.60 40.44 45.20
Other liabilities 26.92 27.42 0.98 1.14 27.90 28.56
TOTAL LIABILITIES 66.21 71.02 2.13 2.74 68.34 73.76
Deferred inflows of resources 4.26 1.93 - - 4.26 1.93
Net position:
Net investment in capital
assets 424.16 429.73 68.39 69.07 492.55 498.80
Restricted 196.86 200.54 - - 196.86 200.54
Unrestricted 86.02 90.06 6.67 6.59 92.69 96.65
TOTAL NET
POSITION $ 707.04 $ 720.33 $ 75.06 $ 75.66 $ 782.10 $ 795.99
Table 1 - Graph
Total Assets & Liabilities
� 1,200
° Z,000
� soo �
= 600 �
� 400 ■Total Assets
0 200 _- ��. _-_ _ -- Total Liabilities
�.:. ,:
2020 2019 2020 2019 2020 2019
Governmental Business-Type Total
Activities Activities
The City's governmental activities net position decreased $13.29 million.The City's net position is made up
of three components: Net investment in capital assets; restricted net position; and unrestricted net position.
8
For governmental activities, unrestricted net position, which represents the part of net position that can be
used to finance day-to-day operations, accounted for 12.17 percent of the overall total net position.
Unrestricted net position decreased $4.04 million from$90.06 million in 2019 to$86.02 million in 2020. The
decrease in unrestricted net position was the result of the COVID-19 pandemic. The City ended with a
significant decline in its two main revenue sources, sales tax and Transient Occupancy Tax(TOT). In 2020
total sales tax and TOT totaled $30.51 million compared to $38.91 million in 2019, a decrease of
$8.40 million. The loss of these revenues was offset by$3.38 million received from payments on the City's
loans to the former redevelopment agency(SARDA) (see Note 19).
The decrease of$3.68 million in restricted net position was due to restricted capital projects decreasing by
$10.24 million from the prior year. During the year, three major projects were completed; phase 1 of the
San Pablo improvements, the annual street resurfacing program and a storm drainage improvement
project. Restricted special projects increased by$6.56 million, mainly due to the General Fund transfer of
funds to the Fire Fund to cover future anticipated shortages in the amount of $3 million and $2 million to
the Economic Development Fund to assist in the new Invest Palm Desert now known as Unite Palm Desert
program.
Investment in capital assets decreased$5.57 million.The decrease is attributed to current year depreciation
of$11.61 million.The calculation of investment in capital assets includes outstanding debt used to purchase
or construct the City's capital assets.
The City's governmental activities total assets and deferred outflow of resources combined decreased
$15.77 million from $793.28 million in 2019 to $777.51 million in 2020. The decrease is attributable to the
$1.93 million decrease in deferred outflows of resources. Deferred outflows from pensions decreased
$2.86 million (see Note 11 d)and deferred outflows from other post-employment benefits (OPEB)increased
$0.93 million (see Note 15h). In addition to the decrease in deferred outflows of resources,the City received
$6.71 million from advances owed by the Successor Agency (see Note 20).
Total liabilities and deferred inflows combined decreased by $2.48 million from $72.95 in 2019 to
$70.47 million in 2020. The major decrease was the City's OPEB liability that went from $3.48 million to
recognizing an OPEB asset of $40,999. The decrease was offset by the increase in the deferred inflows
that went from $1.93 million in 2019 to $4.26 million in 2020.
The net position of the business-type activities recognized a decrease of$0.60 million, from $75.66 million
during 2019 to $75.06 million during 2020. The main factor for the decrease in net position was overall
decrease in gross revenues before contributions which decreased by$1.63 million from the previous year.
During the 2019-2020 fiscal year, Desert Willow was ordered to shut down form March 20, 2020 through
April 23, 2020 by the State of California due to the COVID-19 pandemic. The State of California allowed
golf courses to re-open with restrictions that impacted the golf rounds played which directly impacted the
gross revenues.
Total assets in the business-type activities decreased by $1.21 million from $78.40 million in 2019 to
$77.19 million in 2020. The major decrease was in capital assets that went from $70.67 million in 2019 to
$69.54 million in 2020, a decrease of$1.13 million. Depreciation expense of$1.41 million represents the
majority of the decrease.
Total liabilities decreased $0.61 million from $2.74 million in 2019 to$2.13 million in 2020. The decrease in
debt obligation represents the majority of the decrease. In 2019 debt obligation was$1.60 million compared
to$1.15 million in 2020, a decrease of$0.45 million.
9
TABLE 2
CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30,2020 and 2019
Governmental Business-Type
Activities Activities Total
2020 2019 2020 2019 2020 2019
REVENUES:
Program Revenues:
Charges for services $ 30.14 $ 28.92 $ 8.41 $ 10.04 $ 38.55 $ 38.96
Operating grants and
contributions 10.42 10.43 - - 10.42 10.43
Capital grants antl
contributions 3.66 4.02 0.18 0.50 3.84 4.52
General Revenues:
Propertytaxes 11.67 11.91 - - 11.67 11.91
Transient occupancy tax 12.07 17.48 - - 12.07 17.48
Sales tax 18.44 21.43 - - 18.44 21.43
Other taxes 3.02 3.08 - - 3.02 3.08
Investment earnings 2.37 3.17 0.16 0.18 2.53 3.35
Gain on sale of capital assets 0.08 - - - 0.08 -
Other revenues 1.35 1.40 0.11 0.09 1.46 1.49
TOTAL REVENUES 93.22 101.84 8.86 10.81 102.08 112.65
EXPENSES:
General government 24.30 23.25 - - 24.30 23.25
Housing and redevelopment 8.80 9.07 - - 8.80 9.07
Public safety 37.29 37.20 - - 37.29 37.20
Parks,recreation and culture 7.65 8.28 - - 7.65 8.28
Public works 28.27 14.84 - - 28.27 14.84
Interest on long-term debt 0.20 0.23 - - 0.20 0.23
Golf Course-Desert Willow - - 8.60 8.70 8.60 8.70
Office Complex-Parkview - - 0.86 0.87 0.86 0.87
TOTAL EXPENSES 106.51 92.87 9.46 9.57 115.97 102.44
INCREASE(DECREASE)IN NET POSITION
BEFORE TRANSFERS&SPECIAL ITEM (13.29) 8.9� ��.6�� 1.24 (13.89) 10.21
Transfers - 0.30 - (0.30) - -
Specialltem - 7.53 - - - 7.53
INCREASE(DECREASE)IN NET POSITION (13.29) 1.74 (0.60) 0.94 (13.89) 2.68
BEGINNING NET POSITION 720.33 718.59 75.66 74.72 795.99 793.31
ENDING NET POSITION $ 707.04 $ 720.33 $ 75.06 $ 75.66 $ 782.10 $ 795.99
10
Table 2-Graph
Changes in Net Position
800 80
700 70
600 �Beginning Net
60 Position
N 500 50 � Total Revenues
c
° 400 40
� 300 30 tEnding Net
._ Position
N
0 200 20 o Total Expenses
0
0 100 10 —
2020 2019 2020 2019
Governmental Activities Business-Type Activities
Governmental Activities
Total revenue (excluding transfers) decreased by $8.62 million from $101.84 million to $93.22 million.
Factors that contributed to the changes in revenues are as follows:
• Transient occupancy tax decrease from$17.48 million in 2019 to$12.07 million in 2020, a decrease
of $5.41 million. Hotels were closed to the public for a period of time due to the COVID-19
pandemic.
• The City's sales tax decreased by $2.99 million from $21.43 million in 2019 to $18.44 million in
2020. Stores were ordered to stop in person sales to the public due to the COVID-19 pandemic.
• In 2020, investment rates were lower than prior year,therefore,the City accounted for$2.37 million
in investment earnings compared to $3.17 million in 2019, a decrease of$0.80 million.
• Charges for services increased from $28.92 million in 2019 to $30.14 million in 2020. In 2019, the
City began collecting for emergency services and cannabis tax, which was the second year for
theses revenue sources. These two new revenue sources recognized and increase in charges for
services by$2.47 million; $0.74 million in emergency service and $1.73 million in cannabis tax.
• Operating contributions and grants had a minor decrease of$0.01 million. This was the result of a
decrease in State revenue for front line police expenses.
• Capital contribution and grants decreased from $4.02 million to $3.66 million, a decrease of
$0.36 million.
Total expenses increased from $92.87 million to $106.51 million, a 14.69 percent increase. The primary
reason for the increase was in the public works function that increased $13.43 million. The City started and
completed construction and road improvements on several projects. Additional factors in the change in the
amount of expenses for the year included, general government increase of$1.05 million and public safety
increase of$0.09 million.
11
The following schedule represents the net cost of providing services:
Governmental Activities
Net(Expense) Revenue
(In Millions)
2020 2019
General government ($19.56) ($18.51)
Housing and redevelopment 0.14 (0.69)
Public safety (20.76) (22.38)
Parks, recreation and culture (4.33) (4.20)
Public works (17.58) (3.50)
Interest on long term debt (0.20) (0.23)
Total ($62.29) ($49.51)
2020 2019
Governmental Activities Governmental Activities
Net(Expense)Revenue Net(Expense)Revenue
General government
0% 8% 8% 10/
29/0� o � ■Housing and
32/o redevelopment
� Public safety
• 3$% ■Parks,recreation&
6%
0% culture
44% ■Public works
33% 1�/
�Interest on long
term debt
Business-type Activities
In the business-type activities, total revenues decreased by 18 percent from $10.81 million to$8.86 million,
a $1.95 million decrease. The main factor for the decrease was the State ordered shutdown of all golf
courses during the height of the tourist season. The combined fees and rentals revenues recognized a
decrease of$1.55 million from$8.73 million in fiscal year 2019 to$7.18 million for fiscal year 2020. Capital
contributions also decreased by$320,661, from $504,217 to $183,556.
The Parkview Office Complex revenues increased slightly. The impact of the COVID-19 pandemic has
softened the rental market further,and increased the threat of reduced rents and vacancies as the economic
shutdown continues.
Operating expenses for business-type activities decreased by $0.11 million from $9.57 million to
$9.46 million. The decrease is recognized from the Desert Willow Golf Resort costs which decreased their
overall costs for merchandise by $68,433 with the remaining decrease recognized by Parkview
maintenance and operation costs which were $36,862 less than the prior year.
12
THE CITY'S FUNDS
On page 22, the governmental funds balance sheet is shown. The combined fund balance of
$305.11 million decreased $1.39 million from $306.50 million. This total includes the General Fund balance
of$92.88 million, which decreased by $0.16 million from the prior year. The City's General Fund balance
has a nonspendable balance of $7.20 million, committed balance of $66.01 million, assigned balance of
$16.20 million, and $3.47 million of unassigned fund balance. The decrease in the General Fund's balance
was due in part to the COVID-19 shutdown that reduced combined sales tax and transient occupancy tax
from $38.68 million in 2019 to$30.13 million in 2020, a reduction of$8.55 million. Other major fund balance
changes are noted below:
• The Prop A Fire Tax Special Revenue Fund: The fund balance increased $1.92 million. The City
transferred $3 million to cover future shortage.
• The Housing Asset Fund:The fund balance had an increase of$1.71 million. The increase was the
result of interest earnings from the loan advanced to the SARDA that received payment this year.
• Measure A Special Revenue Fund: the fund balance decreased from $25.12 million to
$20.46 million. Several projects were started and completed totaling $8.54 million.
• Housing Authority Fund: This fund had a minor increase of $0.49 million from $19.94 million to
$20.43 million.
• Capital Properties Fund: The fund balance decreased $7.24 million from $69.07 million to
$61.83 million.The decrease was due to the capital project expenditures of$7.95 million exceeding
investment earnings of$0.71 million.
More detailed information about the combined fund balance reserves is presented in Note 12 to the financial
statements.
General Fund Budgetary Highlights
Based upon recommendations from the staff, the City Council revised the budget several times during the
year.Adjustments were made on a monthly basis as City staff requested additional appropriations to cover
the cost of projects that either had change orders for additional work, or were underestimated. At mid-year,
no adjustments were requested as department budgets met current demands. At year-end, budgets were
adjusted for unanticipated approved expenditures. All amendments that either increase or decrease
appropriations are approved by the City Council.
For the City's General Fund, the actual ending revenues of$59.97 million were $0.20 million less than the
final budgeted revenues of$60.17 million. Sales and transient occupancy taxes continue to be the top two
revenue generators for the City, totaling $30.13 million or 50.24 percent of the total General Fund actual
revenues.The original budget was$60.67 million compared to the final budget of$60.17 million a decrease
of$0.50 million. The City was fortunate that the final budget was not lower due to the payment it received
from the State of California for advances from the former redevelopment agency.
The General Fund actual ending expenditures of$60.13 million were$2.64 million less than the final budget
of$62.77 million. There were changes in the original budget compared to the final budget during the year.
The original expenditure budget was $60.63 million compared to the final budget of $62.77 million, a
$2.14 million increase. During the year, the following represent the major change between original budget
and final budget; $1.4 million was appropriated to fund the tenant improvements for a new Palm Desert
iHUB and $2 million was appropriated to fund the City's Invest Palm Desert now known as
Unite Palm Desert program, which, was later re-appropriated to help business during the COVID-19
pandemic.
13
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2020, the City had $493.70 million invested in a broad range of capital assets including land,
streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, golf courses and
equipment (See Table 3). This amount represents a net decrease (including additions and deductions) of
$6.70 million over the prior year, due mainly to depreciation.
TABLE 3
CAPITAL ASSETS AT YEAR-END
(NET OF DEPRECIATION, IN MILLIONS)
For the years ended June 30,2020 and 2019
Governmental Business-Type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Land $ 81.96 $ 81.96 $ 53.31 $ 53.31 $ 135.27 $ 135.27
Construction-in-progress 3.99 2.15 - - 3.99 2.15
Buildings and improvements
other than buildings 88.90 94.47 14.55 15.32 103.45 109.79
Machinery and equipment 3.27 2.57 1.68 2.04 4.95 4.61
Infrastructure&right-of-way 246.04 248.58 - - 246.04 248.58
TOTALS $ 424.16 $ 429.73 $ 69.54 $ 70.67 $ 493.70 $ 500.40
Table 3-Graph
Capital Assets at Year-End
(Net of Depreciation in Millions)
700 ■Land
,� 600
c
� 500 ■Construction-in-Progress
� 400
� ■Buildings&Improvements other than
i 3��
buildings
�
Q200 ■Equipment
100
- �-� -- -- ■Infrastructure&right-of-way
2020 2019 2020 2019 2020 2019
Governmental Business-Type Total ■Totals
Activities Activities
14
This year's major additions included (in millions):
Street improvements $ 4.02
Park and recreation improvements 0.57
Building improvements 0.07
Equipment and software purchases 1.50
Land acquisitions/right-of-way 0.11
6.27
The City's fiscal year 2021 adopted capital budget calls for an additional $33.89 million to be spent, plus
continuing capital projects of $75.03 million from prior year, with the majority being spent on streets,
infrastructure, buildings, parks and golf course improvements. Projects will be funded with existing bond
proceeds or funds that have been designated by an outside party for specific use. More detailed information
about the City's capital assets is presented in Note 1f and Note 5 to the financial statements.
Debt
At year-end,the City's governmental activities had$39.31 million in bonds, claims,compensated absences,
and pension liability versus $43.60 million last year, a decrease of$4.29 million as shown in Table 4. The
major decrease was the City's OPEB liability that went from $3.48 million to recognizing an OPEB asset of
$40,999. In addition, the City's meet all its annual bond debt payment requirements decreasing their
balances from $2.07 million to $1.85 million.
TABLE 4
OUTSTANDING DEBT AT YEAR-END
(IN MILLIONS)
For the years ended June 30,2020 and 2019
Governmental Business-Type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Compensated absences payable $ 2.57 $ 2.63 $ - $ - $ 2.57 $ 2.63
Capitalleases - - 1.15 1.60 1.15 1.60
Claims and judgements payable 0.05 0.58 - - 0.05 0.58
Special assessments debt with
government commitment 1.18 1.31 - - 1.18 1.31
Limited Obligation Improvement
bonds 0.67 0.76 - - 0.67 0.76
OPEB liability - 3.48 - - - 3.48
Pension liability 34.84 34.84 - - 34.84 34.84
TOTALS $ 39.31 $ 43.60 $ 1.15 $ 1.60 $ 40.46 $ 45.20
The City was able to meet its current year debt obligation in a timely manner. Bonds that were issued in
prior years have been used to finance various capital projects.
15
The City's business-type activities debt decreased $0.45 million from $1.60 million to$1.15 million. Debt in
the business-type activities is for capital leasing of equipment. The City's golf course uses leasing as an
alternative to purchasing golf carts and maintenance equipment to maintain a cash flow to operate the
day-to-day activities.The City's business-type activities were able to meet their current year debt obligation
in a timely manner. More detailed information about the City's long-term liabilities is presented in Note 6
through Note 9 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
On March 17, 2020, the City declared an emergency due to the COVID19 Coronavirus pandemic. Until this
emergency order is lifted, the City's two largest revenue sources, sales tax and transient occupancy tax,
will continue to be affected. Consequently, the City remains committed to spend cautiously while prioritizing
projects that support reopening and recovery.
In preparing the budget for fiscal year 2021, management carefully considered operational adjustments due
to the extraordinary economic challenges of the global COVID-19 pandemic and its effects, while
considering the wellbeing and safety of Palm Desert's residents, visitors and businesses. It remains a
commitment of the City to provide a high level of service and maintenance of City facilities by allocating
resources for public safety and necessary infrastructure improvements. The 2021 budget is further a
reflection of that commitment by authorizing the use of reserves to balance the General Fund operating
budget.
The City's 2020-2021 Financial Plan can be found on the City's website at www.citvofpalmdesert.orq.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customers, investors, and creditors
with a general overview of the City's finances and serves as a resource to demonstrate the stewardship
and accountability for the public monies it receives.
If you have questions about this report or need additional financial information, please contact the Finance
Department at (760) 346-0611 or info cityofpalmdesert.org.
16
CITY OF PALM DESERT
STATEMENT OF NET POSITION
JUNE 30,2020
Component
Primary Government Unit
Palm Desert
Recreational
Governmental Business-Type Facilities
Activities Activities Total Corporation
ASSETS:
Cash and investments $ 192,811,036 $ 8,131,446 $ 200,942,482 $ 440,173
Receivables:
Accounts 2,051,028 293,089 2,344,117 12,915
Notes 1,178,000 - 1,178,000 -
Accrued interest 2,754,116 - 2,754,116 -
Allowance for interest on Successor Agency (1,710,000) - (1,710,000) -
Loans 8,447,654 - 8,447,654 -
Internal balances 2,000,000 (2,000,000) - -
Prepaid costs 172,731 51,613 224,344 11,512
Deposits 15,156,406 - 15,156,406 -
Due from other governments 4,790,356 - 4,790,356 -
Inventories 4,043 206,029 210,072 44,988
Property held for resale 61,516 - 61,516 -
Due from component unit 324,000 969,673 1,293,673 -
Restricted assets:
Cash with fiscal agent 105,868,368 - 105,868,368 -
Advances to Successor Agency 16,575,463 - 16,575,463 -
Allowance on Advances to Successor Agency (6,000,000) - (6,000,000) -
Net OPEB asset 40,999 - 40,999 -
Capital assets,not being depreciated 207,154,108 53,304,965 260,459,073 -
Capital assets,net of depreciation 217,009,856 16,234,105 233,243,961 -
TOTAL ASSETS 768,689,680 77,190,920 845,880,600 509,588
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows from pensions 5,631,464 - 5,631,464 -
Deferred outflows from OPEB 3,185,904 - 3,185,904 -
Total Deferred Outflows
of Resources 8,817,368 - 8,817,368 -
LIABILITIES:
Accounts payable 10,458,576 622,045 11,080,621 19,003
Accrued liabilities 412,550 82,513 495,063 12,932
Accrued interest 64,308 - 64,308 -
Due to primary government - - - 1,293,673
Unearned revenue 15,391,580 250,566 15,642,146 83,677
Deposits payable 585,690 24,465 610,155 -
Long-term liabilities:
Compensated absences due within one year 300,000 - 300,000 -
Capital leases due within one year - 469,236 469,236 -
Long-term debt due within one year 113,000 - 113,000 -
Claims and judgements due within one year 46,995 - 46,995 -
Compensated absences due in more than one year 2,275,071 - 2,275,071 -
Capital leases due in more than one year - 675,775 675,775 -
Long-term debt due in more than one year 1,733,000 - 1,733,000 -
Net pension liability 34,824,923 - 34,824,923 -
TOTAL LIABILITIES 66,205,693 2,124,600 68,330,293 1,409,285
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows from pensions 1,138,801 - 1,138,801 -
Deferred inflows from OPEB 3,122,644 - 3,122,644 -
Total Deferred Inflows
of Resources 4,261,445 - 4,267,445 -
NET POSITION:
Net investment in capital assets 424,163,964 68,394,059 492,558,023 -
Restricted for:
Special projects 94,735,392 - 94,735,392 -
Capital projects 102,123,334 - 102,123,334 -
Unrestricted(deficit) 86,017,220 6,672,261 92,689,481 (899,697)
TOTAL NET POSITION $ 707,039,910 $ 75,066,320 $ 782,106,230 $ (899,697)
See Notes to Financial Statements �7
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2020
Program Revenues
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary Government:
Governmental activities:
General government $ 24,297,715 $ 2,343,116 $ 926,463 $ 1,467,905
Housing and redevelopment 8,802,290 8,446,585 - 498,003
Public safety 37,286,860 16,429,810 36,011 59,308
Parks,recreation and culture 7,651,094 532,543 2,479,980 307,221
Publicworks 28,270,798 2,386,635 6,973,827 1,329,050
Interest on long-term debt 203,183 - - -
Total governmental activities 106,511,940 30,138,689 10,476,281 3,661,487
Business-type activities:
Desert Willow Golf Course 8,603,243 7,099,985 - 183,556
Parkview Office Complex 856,196 1,311,140 - -
Total Business-Type Activities 9,459,439 8,411,125 - 183,556
Total Primary Government $ 115,977,379 $ 38,549,814 $ 10,416,281 $ 3,845,043
Component Unit:
Palm Desert Recreational Facilities Corp. $ 2,379,073 $ 2,216,719 $ - $ -
General Revenues:
Taxes:
Property taxes,levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Investment earnings
Miscellaneous
Gain on sale of capital assets
Total general revenues and transfers
Change in net position
Net position-beginning of year
Net position-end of year
See Notes to Financial Statements �$
Net(Expenses)Revenues and Changes in Net Position
Component
Primary Government Unit
al— m'�
Recreational
Governmental Business-Type Facilities
Activities Activities Total Corporation
$ (19,560,231) $ - $ (19,560,231) $ -
142,298 - 142,298 -
(20,761,731) - (20,761,731) -
(4,331,350) - (4,331,350) -
(17,581,286) - (17,581,286) -
(203,183) - (203,183) -
(62,295,483) - (62,295,483) -
- (1,319,702) (1,319,702) -
- 454,944 454,944 -
- (864,758) (864,758) -
(62,295,483) (864,758) (63,160,241) -
- - - (162,354)
11,668,052 - 11,668,052 -
12,070,635 - 12,070,635 -
18,445,806 - 18,445,806 -
3,025,984 - 3,025,984 -
2,366,204 159,115 2,525,319 -
1,355,134 110,978 1,466,112 -
80,490 - 80,490 -
49,012,305 270,093 49,282,398 -
(13,283,178) (594,665) (13,877,843) (162,354)
720,323,088 75,660,985 795,984,073 (737,343)
$ 707,039,910 $ 75,066,320 $ 782,106,230 $ (899,697)
See Notes to Financial Statements �g
�s +
TH IS PAG E I NTENTIONALLY LEFT BLAN K
2�
FUND FINANCIAL STATEMENTS
21
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2020
Special Revenue Funds
Prop A Fire Housing Asset
General Measure A Tax Fund
ASSETS:
Pooled cash and investments $ 86,456,386 $ 20,274,582 $ 5,569,104 $ 3,943,516
Receivables:
Accounts 1,096,380 - 328,255 -
Assessments - - - -
Notes 1,178,000 - - -
Interest 864,678 - - 412,829
Allowance for interest on Successor Agency (132,468) - - (342,000)
Loans 14,978 - - 6,148,813
Prepaid costs 102,818 - - 520
Deposits - 15,136,406 - -
Due from other governments 3,340,713 552,830 54,920 -
Due from other funds 4,054,570 - - 2,115,093
Inventories - - - -
Property held for resale - - - 61,516
Due from component unit 324,000 - - -
Restricted assets:
Cash and investments with fiscal agent - - - 36,305,448
Advances to Successor Agency 4,760,087 - - -
Allowance for Advances to Successor Agency (581,000) - - -
TOTAL ASSETS $ 101,479,142 $ 35,963,818 $ 5,952,279 $ 48,645,735
Liabilities,Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable $ 5,656,423 $ 363,510 $ 1,534,077 $ 12,138
Accrued liabilities 310,094 - - -
Unearned revenues - 15,136,406 - -
Deposits payable - - - -
Due to other funds 835,818 - - -
TOTAL LIABILITIES 6,802,335 15,499,916 1,534,077 12,138
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 1,798,256 - - 67,315
1,798,256 - - 67,315
FUND BALANCES:
Nonspendable 7,196,092 - - -
Restricted - 20,463,902 4,418,202 48,566,282
Committed 66,012,415 - - -
Assigned 16,196,564 - - -
Unassigned 3,473,480 - - -
Total Fund Balances 92,878,551 20,463,902 4,418,202 48,566,282
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 101,479,142 $ 35,963,818 $ 5,952,279 $ 48,645,735
See Notes to Financial Statements 22
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2020
Special
Revenue Capital
Funds Projects Funds
Other Total
Housing Capital Governmental Governmental
Authority Properties Funds Funds
ASSETS:
Pooled cash and investments $ 17,406,756 $ - $ 48,720,563 $ 182,370,907
Receivables:
Accounts 19,421 - 606,972 2,051,028
Assessments - - 1,127,149 1,127,149
Notes - - - 1,178,000
Interest 3 57 1,476,549 2,754,116
Allowance for interest on Successor Agency - - (1,235,532) (1,710,000)
Loans - - 2,283,863 8,447,654
Prepaid costs - - 15,705 119,043
Deposits - - 20,000 15,156,406
Due from other governments - - 841,893 4,790,356
Due from other funds - - 500,000 6,669,663
Inventories - - 4,043 4,043
Property held for resale - - - 61,516
Due from component unit - - - 324,000
Restricted assets:
Cash and investments with fiscal agent 3,722,588 63,741,501 2,098,831 105,868,368
Advances to SuccessorAgency - - 11,815,376 16,575,463
Allowance for Advances to Successor Agency - - (5,419,000) (6,000,000)
TOTALASSETS $ 21,148,768 $ 63,741,558 $ 62,856,412 $ 339,787,712
Liabilities,Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable $ 65,918 $ 1,031,096 $ 1,728,437 $ 10,391,599
Accrued liabilities 97,127 - 5,329 412,550
Unearned revenues 15,659 - 239,515 15,391,580
Deposits payable 542,444 - 43,246 585,690
Due to other funds - 879,596 2,954,249 4,669,663
TOTAL LIABILITIES 721,148 1,910,692 4,970,776 31,451,082
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - 1,361,161 3,226,732
- - 1,361,161 3,226,732
FUND BALANCES:
Nonspendable - - 15,705 7,211,797
Restricted 8,552,132 61,830,866 24,975,070 168,806,454
Committed 11,875,488 - 4,399,885 82,287,788
Assigned - - 27,133,815 43,330,379
Unassigned - - - 3,473,480
Total Fund Balances 20,427,620 61,830,866 56,524,475 305,109,898
Total Liabilities, Deferred Inflows of
Resources,and Fund Balances $ 21,148,768 $ 63,741,558 $ 62,856,412 $ 339,787,712
See Notes to Financial Statements 23
�s +
TH IS PAG E I NTENTIONALLY LEFT BLAN K
24
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30,2020
Total fund balance for governmental funds $ 305,109,898
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets net of depreciation have not been included as financial resources
in the governmental fund activity. 421,651,278
Deferred outflows related to pension and OPEB related items are not included in the
governmental fund activity:
Pension
Contributions made after the measurement date $ 4,521,813
Differences between expected and actual experiences 1,109,651 5,631,464
OPEB
Contributions made after the measurement date 1,280,453
Changes in assumptions 1,898,201
Differences between expected and actual experiences 7,250 3,185,904
Deferred inflows related to pension and OPEB related items are not included in the
governmental fund activity:
Pension
Changes in assumptions (382,902)
Net Difference between projected and actual earning on plan investments (557,605)
Differences between expected and actual experiences (198,294) (1,138,801)
OPEB
Changes in assumptions (763)
Differences between expected and actual experiences (3,038,891)
Net Difference between projected and actual earning on plan investments (82,990) (3,122,644)
Long-term debt, claims and judgements and net pension liability are not
in the governmental fund activity:
Bonds (1,846,000)
Claims and judgments (46,995)
Net pension liability (34,824,923) (36,717,918)
Net OPEB assets are not available to pay for current-period expenditures
and therefore are not reported in the governmental funds 40,999
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due. (64,308)
Unavailable revenues are not reported as revenues in governmental funds and thus
have the effect of decreasing fund balances. For the City as a whole, however,the
collection of these receipts increases the net position in the Statement of Net Position
and results in revenues in the Statement of Activities. 2,099,583
Internal service funds are used by management to charge the costs of certain activities,
such as equipment and compensated absences to individual funds.The assets and
liabilities of the internal service fund must be added to the Statement of Net Position. 10,364,455
Net Position of Governmental Activities $ 707,039,910
See Notes to Financial Statements 25
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2020
Special Revenue Funds
Prop A Fire Housing Asset
General Measure A Tax Fund
REVENUES:
Taxes $ 47,381,167 $ 2,869,576 $ 6,250,113 $ -
Special assessments collected - - 2,314,419 -
Licenses and permits 1,032,753 - - -
Intergovernmental revenues 1,445,078 542,263 1,174,349 -
Rental income 58,857 - - -
Charges for services 1,484,053 - 2,857,519 -
Investment earnings 4,181,814 470,536 48,066 1,652,570
Fines and forfeitures 123,822 - - -
Miscellaneous 1,790,318 - 144,648 158,744
TOTAL REVENUES 57,497,862 3,882,375 12,789,114 1,811,314
EXPENDITURES:
Current:
General government 18,678,531 - - -
Publicsafety 23,076,706 - 13,871,741 -
Parks, recreation and culture 3,832,889 - - -
Publicworks 5,821,425 8,159,491 - -
Housing and redevelopment - - - 103,238
Capital outlay 89,327 383,670 652 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 51,498,878 8,543,161 13,872,393 103,238
EXCESS OFREVENUES OVER
(UNDER)EXPENDITURES 5,998,984 (4,660,786) (1,083,279) 1,708,076
OTHER FINANCING SOURCES(USES):
Transfers in 2,472,976 - 3,000,000 -
Transfers out (8,636,479) - - -
TOTAL OTHER FINANCING
SOURCES(USES) (6,163,503) - 3,000,000 -
NET CHANGE IN FUND BALANCES (164,519) (4,660,786) 1,916,721 1,708,076
FUND BALANCES-BEGINNING OF YEAR 93,043,070 25,124,688 2,501,481 46,858,206
FUND BALANCES-END OF YEAR $ 92,878,551 $ 20,463,902 $ 4,418,202 $ 48,566,282
See Notes to Financial Statements 2g
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2020
Special
Revenue Capital
Funds Projects Funds
Other Total
Housing Capital Governmental Governmental
Authority Properties Funds Funds
REVENUES:
Taxes $ - $ - $ 3,135,062 $ 59,635,918
Special assessments collected - - 1,167,505 3,481,924
Licenses and permits - - 236,212 1,268,965
Intergovernmental revenues - - 3,240,236 6,401,926
Rental income 7,012,791 - - 7,071,648
Charges for services - - 931,005 5,272,577
Investment earnings 286,145 713,618 2,958,410 10,311,159
Fines and forfeitures - - 3,979 127,801
Miscellaneous 150,524 - 2,497,671 4,741,905
TOTAL REVENUES 7,449,460 713,618 14,170,080 98,313,823
EXPENDITURES:
Current:
General government - 16,157 2,773,824 21,468,512
Publicsafety - - 73,505 37,021,952
Parks, recreation and culture - - 2,069,277 5,902,166
Publicworks - 4,912,422 3,101,468 21,994,806
Housing and redevelopment 6,693,092 - 294,611 7,090,941
Capital outlay - 3,024,912 1,619,407 5,117,968
Debt service:
Principal retirement - - 225,000 225,000
Interest and fiscal charges - - 210,292 210,292
TOTAL EXPENDITURES 6,693,092 7,953,491 10,367,384 99,031,637
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 756,368 (7,239,873) 3,802,696 (717,814)
OTHER FINANCING SOURCES(USES):
Transfers in - - 5,229,786 10,702,762
Transfers out (268,510) - (2,472,976) (11,377,965)
TOTAL OTHER FINANCING
SOURCES(USES) (268,510) - 2,756,810 (675,203)
NET CHANGE IN FUND BALANCES 487,858 (7,239,873) 6,559,506 (1,393,017)
FUND BALANCES-BEGINNING OF YEAR 19,939,762 69,070,739 49,964,969 306,502,915
FUND BALANCES-END OF YEAR $ 20,427,620 $ 61,830,866 $ 56,524,475 $ 305,109,898
See Notes to Financial Statements 27
�s +
TH IS PAG E I NTENTIONALLY LEFT BLAN K
2$
CITY OF PALM DESERT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2020
Net change in fund balances-total governmental funds $ (1,393,017)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities,the costs of those assets are allocated over their estimated useful lives
as depreciation expense.
Capital outlay $ 5,117,968
Gain/(loss)on sale and disposal of capital assets (212,811)
Depreciation (11,036,335) (6,131,178)
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position. 225,000
Some 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:
Net change in accrued interest for the current period 7,109
Net change in claims and judgments for the current period 537,444 544,553
Pension obligation and OPEB expenses are expenditures in the governmental funds,
but reduce the Net Pension Liability and Net OPEB Liability in the statement of net position:
Pension expense (2,059,381)
OPEB expense 1,327,403 (731,978)
Unavailable revenues are not reported as revenues in governmental funds and thus
has the effect of decreasing fund balances. For the City as a whole, however,the
collection of these receipts increases the net position in the Statement of Net Position
and results in revenues in the Statement of Activities. (5,391,417)
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. (405,141)
Change in Net Position of Governmental Activities $ (13,283,178)
See Notes to Financial Statements 29
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2020
Business-Type Activities-
Enterprise Funds
Major Fund Other Fund Governmental
Parkview Activities-
Desert Willow Office Total Internal Service
Golf Course Complex Enterprise Funds Funds
ASSETS:
CURRENT ASSETS:
Cash and investments $ 1,934,426 $ 6,197,020 $ 8,131,446 $ 10,440,129
Receivables:
Accounts 213,800 79,289 293,089 -
Prepaid costs 51,613 - 51,613 53,688
Inventories 206,029 - 206,029 -
Due from component unit(PDRFC) 969,673 - 969,673 -
TOTAL CURRENT ASSETS 3,375,541 6,276,309 9,651,850 10,493,817
CAPITAL ASSETS:
Nondepreciable 53,304,965 - 53,304,965 -
Depreciable,net 10,235,511 5,998,594 16,234,105 2,512,686
CAPITAL ASSETS,NET 63,540,476 5,998,594 69,539,070 2,512,686
TOTAL ASSETS $ 66,916,077 $ 72,274,903 $ 79,190,920 $ 13,006,503
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable $ 587,892 $ 34,153 $ 622,045 $ 66,977
Accrued liabilities 82,513 - 82,513 -
Unearned revenues 238,252 12,314 250,566 -
Deposits payable - 24,465 24,465 -
Due to other funds 2,000,000 - 2,000,000 -
Compensated absences - - - 300,000
Capitalleases 469,236 - 469,236 -
TOTAL CURRENT LIABILITIES 3,377,893 70,932 3,448,825 366,977
NONCURRENT LIABILITIES:
Compensated absences - - - 2,275,071
Capitalleases 675,775 - 675,775 -
TOTAL NONCURRENT LIABILITIES 675,775 - 675,775 2,275,077
TOTAL LIABILITIES 4,053,668 70,932 4,124,600 2,642,048
Net Position:
Net investment in capital assets 62,395,465 5,998,594 68,394,059 2,512,686
Unrestricted 466,884 6,205,377 6,672,261 7,851,769
Total Net Position 62,862,349 12,203,971 75,066,320 10,364,455
Total Liabilities,Deferred Inflows
of Resources,and Net Position $ 66,916,077 $ 12,274,903 $ 79,190,920 $ 13,006,503
See Notes to Financial Statements 3Q
CITY OF PALM DESERT
STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2020
Business-Type Activities-Enterprise Funds
Major Fund Other Fund Governmental
a�r c�view Activities-
Desert Willow Office Total Internal Service
Golf Course Complex Enterprise Funds Funds
OPERATING REVENUES:
Fees and rentals $ 5,868,334 $ 1,311,140 $ 7,179,474 $ -
Miscellaneous 110,978 - 110,978 -
Merchandise sales 1,231,651 - 1,231,651 -
TOTAL OPERATING REVENUES 7,210,963 1,311,140 8,522,103 -
OPERATING EXPENSES:
General and administrative 2,235,787 207,163 2,442,950 155,069
Cost of inerchandise 453,670 - 453,670 -
Maintenance and operations 4,680,782 349,865 5,030,647 656,428
Depreciation and amortization 1,112,306 299,168 1,411,474 575,203
TOTAL OPERATING EXPENSES 8,482,545 856,196 9,338,741 1,386,700
OPERATING INCOME(LOSS) (1,271,582) 454,944 (816,638) (1,386,700)
NONOPERATING REVENUES(EXPENSES)
Interest revenue 26,691 132,424 159,115 225,866
Interest expense (120,698) - (120,698) -
Gain on disposal of capital assets - - - 80,490
TOTAL NONOPERATING
REVENUES(EXPENSES) (94,007) 132,424 38,417 306,356
INCOME(LOSS)BEFORE
CAPITAL CONTRIBUTIONS&TRANSFERS (1,365,589) 587,368 (778,221) (1,080,344)
CAPITAL CONTRIBUTIONS 183,556 - 183,556 -
TRANSFERS IN - - - 675,203
CHANGE IN NET POSITION (1,182,033) 587,368 (594,665) (405,141)
NET POSITION-BEGINNING OF YEAR 64,044,382 11,616,603 75,660,985 10,769,596
NET POSITION-END OF YEAR $ 62,862,349 $ 12,203,971 $ 75,066,320 $ 10,364,455
See Notes to Financial Statements 31
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2020
Major
Fund Other Fund Governmental
Total Activities-
Desert Willow Parkview Enterprise Internal Service
Golf Course Office Complex Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receiptsfromcustomers $ 6,785,425 $ 1,318,905 $ 8,104,330 $ -
Payments to suppliers (7,548,823) (554,484) (8,103,307) (607,361)
Cash paid to employees for services - - - (208,213)
NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES (763,398) 764,421 1,023 (815,574)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds - - - 675,203
NET CASH PROVIDED BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES - - - 675,203
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (85,560) (15,300) (100,860) (1,152,638)
Principal paid on leases (450,383) - (450,383) -
Interest paid on leases (120,698) - (120,698) -
Proceeds from sales of capital assets - - - 92,332
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (656,641) (15,300) (671,941) (1,060,306)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 26,691 132,424 159,115 225,866
NET CASH PROVIDED BY
INVESTING ACTIVITIES 26,691 132,424 159,115 225,866
NET INCREASE(DECREASE)IN
CASH AND CASH EQUIVALENTS (1,393,348) 881,545 (511,803) (974,811)
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 3,327,774 5,315,475 8,643,249 11,414,940
CASH AND CASH EQUIVALENTS-
END OF YEAR $ 1,934,426 $ 6,197,020 $ 8,131,446 $ 10,440,129
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES:
Operating income(loss) $ (1,271,582) $ 454,944 $ (816,638) $ (1,386,700)
Adjustments to reconcile operating
income(loss)to net cash provided
(used)by operating activities:
Depreciation and amortization 1,112,306 299,168 1,411,474 575,203
Changes in assets and liabilities:
(Increase)decrease in receivables,net (149,731) 4,361 (145,370) -
(Increase)decrease in prepaid costs 8,814 - 8,814 (28,570)
(Increase)decrease in due from other governments - - - 25,000
(Increase)decrease in inventories (15,772) - (15,772) -
(Increase)decrease in due from component unit (276,955) - (276,955) -
Increase(decrease)in accounts payable and accrued liabilities (171,626) 2,544 (169,082) 52,637
Increase(decrease)in deposits payable - - - -
Increase(decrease)in unearned revenue 1,148 3,404 4,552 -
Increase(decrease)in compensated absences - - - (53,144)
Total Adjustments 508,184 309,477 817,661 571,126
NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES $ (763,398) $ 764,421 $ 1,023 $ (815,574)
NONCASHITEMS:
Capital Contributions $ 183,556 $ - $ 183,556 $ -
See Notes to Financial Statements 32
CITY OF PALM DESERT
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30,2020
Private-Purpose
TrustFund
SuccessorAgency
to the Palm Desert
Redevelopment
Agency Agency Private-
Funds Purpose Trust Fund
Assets:
Pooled cash and investments $ 13,507,706 $ 2,193,231
Receivables:
Assessments 50,031,646 -
Accrued interest 10,000 6,751
Prepaid costs - 1,587,351
Due from other governments 55,879 -
Restricted assets:
Cash and investments with fiscal agents 4,829,551 37,228,940
Capital assets:
Capital assets,not being depreciated - 24,891,841
Total Assets $ 68,434,782 65,908,114
Deferred Outflows of Resources:
Deferred charge on refunding 44,671
Total Deferred Outflows of Resources 44,671
Liabilities:
Accounts payable $ - 388,700
Deposits payable 68,434,782 -
Long-term liabilities:
Long-term debt due in one year - 17,330,000
Long-term debt due in more than one year - 201,652,344
Advances from City of Palm Desert - 10,575,463
Interest payable - 2,335,041
Total Liabilities $ 68,434,782 232,281,548
Deferred Inflows of Resources:
Deferred charge on refunding 480,582
Total Deferred Inflows or Resources 480,582
Net Position:
Held in trust (166,809,345)
Total Net Position $ (166,809,345)
See Notes to Financial Statements 33
CITY OF PALM DESERT
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30,2020
Private-Purpose Trust
Fund
SuccessorAgencyto
the Palm Desert
Redevelopment
Agency Private-
Purpose TrustFund
ADDITIONS:
Taxes $ 36,217,826
Investment income 135,415
Other 164,670
TOTAL ADDITIONS 36,517,911
DEDUCTIONS
Housing and development 1,029,220
Interest 8,342,940
TOTAL DEDUCTIONS 9,372,160
CHANGES IN NET POSITION 27,145,751
NET POSITION-BEGINNING OF YEAR (193,955,096)
NET POSITION-END OF YEAR $ (166,809,345)
See Notes to Financial Statements 34
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The City of Palm Desert was originally incorporated on November 26, 1973, as a General
Law City. In December 1997, Measure LL was enacted following a vote by Palm Desert
residents, which adopted a City Charter. The City operates under a Council-Manager form
of government and provides the following services: public safety(police and fire), highways
and streets, public improvements, community development(planning, building and zoning)
and general administrative services.
The City has defined its reporting entity in accordance with accounting principles generally
accepted in the United States of America which provides guidance for determining which
governmental activities, organizations and functions should be included in the reporting
entity. The Basic Financial Statements present information on the activities of the reporting
entity, which include the City of Palm Desert (the primary government) and its component
units, entities for which the government is considered financially accountable.
Accounting principles generally accepted in the United States of America require that the
component units be separated into blended or discretely presented units for reporting
purposes. The following criteria were used in determination of blended component units:
appointment of the governing board and fiscal dependence. Although legally separate
entities, blended component units are, in substance, part of the City's operations.
Therefore, they are reported as part of the primary government. Discretely presented
component units are reported in a separate column in the basic financial statements to
emphasize that they are legally separate from the City.
Blended Component Units
Following are descriptions of legally separate component units for which the City is
financially accountable that are blended with the Primary Government. The governing
bodies of these component units are substantially the same with operational responsibility
as the City and provides a financial benefit.
The Palm Desert Housing Authority (Housing Authority) was established by the
City Council in January 1998, and is responsible for the administration of providing
affordable housing in the City. The Housing Authority transactions are reported in the
governmental funds balance sheet as a major fund.
The Palm Desert Financing Authority (Financing Authority) was formed on
January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the
proceeds to the City and Agency.The Financing Authority's capital related transactions are
reported in the governmental fund financial statements in the capital projects funds, and
the collection of assessments and payments of debt service is recorded in the fiduciary
funds.
The City Council of Palm Desert is the governing body for the Housing Authority and
Financing Authority.
Separate financial statements are not issued for the Housing Authority and Financing
Authority.
35
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
Discretely Presented Component Unit
The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on
February 25, 1997. The purpose of the Corporation is to lease, operate and manage a
restaurant and bar in the Desert Willow Golf Course in Palm Desert, California. The Board
of Directors of the Corporation appoints an executive director to administer operations.
The Corporation is in a separate column to emphasize that it is legally separate from the
City and is financially accountable to the City. The two-member board governing the
Corporation is appointed by the City Council, the City has authority to approve the
Corporation's budget, and the City must approve any debt issued.
Complete financial statements of the Component Unit can be obtained from the City's
administrative offices.
b. Basis of Presentation:
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. For the most part, the effect of interfund activity has
been removed from these statements. Interfund services provided and used are not
eliminated in the process of consolidation. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges 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 and indirect
expenses of a given function or segment are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or segment. Program revenues
include: 1) charges to customers or applicants who purchase, use or directly benefit from
goods, services or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues. Expenses reported for
functional activities include allocated indirect expenses.
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. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
36
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
Fund Financial Statements
The 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. Each fund is
accounted for by providing a separate set of self-balancing accounts that constitute its
assets, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses. Funds are organized into three major categories: governmental,
proprietary and fiduciary. An emphasis is placed on major funds within the governmental
and proprietary categories.
A fund is considered major if it is the primary operation fund of the City or meets the
following criteria:
a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of that individual governmental or
enterprise fund are at least 10°/o of the corresponding total for all funds of that category
or type; and
b. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of the individual governmental fund or
enterprise fund are at least 5% of the corresponding total for all governmental and
enterprise funds combined; and
c. The government has determined that a fund is important to the financial statement
user.
The funds of the financial reporting entity are described below:
Governmental Fund Types
General Fund - The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another
fund.
Special Revenue Funds-Special Revenue Funds are used to account for the proceeds of
specific revenue resources (other than major capital projects)that are legally restricted to
expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation of
resources for, and the payment of, general long-term obligation principal, interest and
related costs.
Capital Projects Funds-Capital Projects Funds are used to account for financial resources
to be used for the acquisition or construction of major capital facilities.
37
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent of the
City Council is that the costs (expenses including depreciation) of providing goods and
services to the general public on a continuing basis be financed or recovered primarily
through user charges.
The Primary GovernmenYs Enterprise funds consist of the Parkview Office Complex and
the Desert Willow Golf Course. Desert Willow Golf Course is operated by a management
company. The discretely presented Component Unit's fund consists of the Palm Desert
Recreational Facilities Corporation, also operated by a management company.
Internal Service Funds - The Internal Service Funds account for financial transactions
related to replacement of City-owned vehicles and equipment and to fund compensated
absences. These services are provided to other departments or agencies of the City on a
cost reimbursement basis.
Fiduciary Fund Types
Private-Purpose Trust Fund
The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust
Fund is used to account for the activities of the Successor Agency to the Palm Desert
Redevelopment Agency.
Aqencv Funds
The Aqency, Special Assessment and Treasurers 1911 Bond Act Funds are used to
account for assets held by the City in a custodial capacity as a trustee or as an agent.
These assets include deposits placed with the City by developers, individuals and groups
to obtain future services, as well as deposits from assessment districYs property owners.
These deposits are reduced by payments and/or refunds to individuals or entities at some
future time. Agency funds are custodial in nature and do not involve measurement of
results of operations.
The City's Retiree Service Stipend Fund is used to account for assets held to pay for the
retiree service stipend.
The major funds are as follows:
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
38
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
The Measure A Special Revenue 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 transit projects. This
fund is used to collect this tax, and pursuant to the provision of Measure A
(Ordinance No. 88-1 and Ordinance No. 02-001 of the County of Riverside) it is restricted
for local street and road expenditures only.
The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived
from tax collected within the City for upgrading fire protection and prevention. Its use is
restricted to obtaining, furnishing, operating and maintaining fire protection and prevention
services (currently under contract with Riverside County Fire Department) equipment or
apparatus. This fund is reported as a major fund because the tax collected is a voter
approved measure.
The Housinq Asset Fund is used to account for any funds generated from housing assets
of the former Redevelopment Agency to be used for projects that benefit low and moderate
income families.
The Housinq Authoritv Special Revenue Fund is used to account for revenues and
expenditures related to rental units owned by the Housing Authority, established in
January 1998.
The Capital Properties Capital Projects Fund is used to account for the cost of city owned
properties that will either be sold or for the construction of public facilities, and the proceeds
of bond funds for capital related properties.
Proprietary Fund
The Desert Willow Golf Course Fund is used to account for the fees collected and expenses
incurred in connection with operating the municipal golf course in the City of Palm Desert.
c. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded
regardless of the measurement focus applied.
On the government-wide Statement of Net Position and the Statement of Activities, both
governmental and business-like activities are presented using the economic resources
measurement focus. The accounting objectives of the economic measurement focus are
the determination of operating income, changes in net position (or cost recovery),financial
position and cash flows. All assets, deferred outflows of resources, liabilities and deferred
inflows of resources (whether current or noncurrent) associated with their activities are
reported.
39
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
In the fund financial statements, the "current financial resources" measurement focus or
the "economic resources" measurement focus is used as appropriate:
1. All governmental funds utilize a"current financial resources" measurement focus. Only
current financial assets, deferred outflows of resources, current liabilities and deferred
inflows of resources are generally included on their balance sheets. Their operating
statements present sources and uses of available spendable financial resources
during a given period. These funds use fund balance as their measure of available
spendable financial resources at the end of the period.
2. The proprietary fund and private purpose trust fund utilize an "economic resources"
measurement focus. Proprietary fund and private purpose trust fund equity are
classified as net position.
3. Agency funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both
governmental and business-like activities are presented using the accrual basis of
accounting. Under the accrual basis of accounting, revenues are recognized when earned
and expenses are recorded when the liability is incurred, or economic asset used.
Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and
exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements,governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are
recognized when "measurable and available". Measurable means knowing or being able
to reasonably estimate the amount. Available means collectible within the current period
or soon enough thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments
that are levied for and due for the fiscal year and collected within 60 days after year-end.
Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are
recorded as governmental fund type revenues when received in cash because they are
not generally measurable until actually received. Revenue from taxpayer assessed taxes,
such as sales taxes, are recognized in the accounting period in which they became both
measurable and available to pay liabilities of the current period. Grants and similar items
are recognized as soon as all eligibility requirements imposed by the provider have been
met. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is
due.
Interfund activity has been eliminated from the general government function for the
government-wide financial statements except for charges between the governmenYs
Desert Willow Golf Course and Parkview Office Complex funds and various other functions
of the government. Elimination of these charges would distort the direct costs and program
revenues for the various functions considered.
40
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
The accrual basis of accounting is followed by the proprietary fund and private purpose
trust fund. Under the accrual basis of accounting, revenues are recognized when earned
and expenses are recorded when the liability is incurred, or economic assets are used.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing goods and services in
connection with a proprietary fund's principal ongoing operations. The principal revenue of
the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges
to customers for use of the golf course and rental fees. 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
non-operating revenues and expenses.
d. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance
sheet will sometimes report a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to future periods and so will not be recognized as
an outflow of resources (expense/expenditure) until that time. The City has the following
items that qualify for reporting in this category:
• Deferred amount on refunding. A deferred amount on refunding results from the
difference in the carrying value of the refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
• Deferred outflows related to pensions and OPEB. This amount is equal to employer
contributions made after the measurement date of the net pension liability and net
OPEB liability/(asset).
• Deferred outflows related to pensions resulting from the difference in projected and
actual earnings on investments of the pension plan fiduciary net position. These
amounts are amortized over five years.
• Deferred outflows of resources related to pensions arising from a change in
assumptions. These amounts are amortized over a closed period equal to the average
of the expected remaining service lives of all employees that are provided with
pensions through the plan, which is 3.0 years.
In addition to liabilities, the statement of net position and the governmental funds balance
sheet will sometimes report a separate section for deferred inflows of resources. This
separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to future periods and will not be recognized as an
inflow of resources (revenue) until that time. The City has the following items that qualify
for reporting in this category:
• Deferred inflows from unavailable revenue, which arises under a modified accrual
basis of accounting is reported only in the governmental fund balance sheet. The
governmental funds report unavailable revenues from the following sources: rent,
investment income, grants, notes receivables collections and reimbursements. These
amounts are unavailable and recognized as an inflow of resources in the period that
the amounts become available.
41
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
• Deferred inflows related to pensions for differences between expected and actual
experience. These amounts are amortized over a closed period equal to the average
of the expected remaining service lives of all employees that are provided with
pensions through the plan, which is 3.0 years.
• Deferred inflows from pensions resulting from changes in assumptions. These
amounts are amortized over a closed period equal to the average expected remaining
service lives of all employees that are provided with pensions through the plan, which
is 3.0 years.
Gains and losses related to changes in total OPEB liability and fiduciary net position are
recognized in OPEB expense systematically over time. Amounts are first recognized in
OPEB expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to OPEB and
are to be recognized in future OPEB expense.
• The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual 5 years straight-line recognition
earnings on OPEB plan investments
All other amounts Straight-line recognition over the expected
average remaining service lifetime (EARSL)
of all members that are provided with
benefits, determined as of the beginning of
the Measurement Period. In determining the
EARSL, all active, retired and inactive
(vested) members are counted, with the
latter two groups having 0 remaining service
ears.
e. Net Position Flow Assumption
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, a flow
assumption must be made about the order in which the resources are considered to be
applied.
It is the City's practice to consider restricted - net position to have been depleted before
unrestricted - net position is applied.
f. Capital Assets and Depreciation
Capital assets, which include property, plant, equipment and infrastructure assets
(e.g., roads, traffic signals, drainage systems and similar items), are reported in the
applicable governmental or business-type activities column in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial cost of
more than $500 and an estimated life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital
assets are recorded at acquisition value at the date of donation.
42
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
The City has reported general infrastructure assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component units,
are depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 years
Improvements other than buildings 20 years
Machinery and equipment 5 to 8 years
Infrastructure 20 to 75 years
g. Appropriations Limit
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative),
the City is restricted as to the amount of annual appropriations from the proceeds of taxes,
and if proceeds of taxes exceed allowed appropriations, the excess must either be
refunded to the State Controller or returned to the taxpayers through revised tax rates,
revised fee schedules or other refund arrangements. For the fiscal year ended
June 30, 2020, proceeds of taxes did not exceed appropriations.
h. Investments
Investments are reported in the accompanying financial statements at fair value. Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. 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, maturity, or sale of investments.
i. Cash and Investments
For purposes of the statement of cash flows, the City has defined cash and investments to
include cash on hand, demand deposits, investments held in various instruments, and
investments held in the California Local Agency Investment Fund (LAIF),
California Asset Management Program (CAMP)and Riverside County Treasurer's Pooled
Investment Fund.
j. Employee Compensated Absences
It is the governmenYs policy to permit employees to accumulate earned but unused
vacation and sick leave (compensated absences). Vacation pay and sick leave, which are
expected to be liquidated with expendable available resources,are reported as expenditure
and liability of the governmental fund that will pay it only if they have matured,for example,
as a result of employee resignations or retirements.
k. Property Held for Resale
The land held for resale is recorded in the Housing Asset Fund as property held for resale
at the lower of cost or market. At June 30, 2020, the cost of the property held for resale for
various housing properties in Palm Desert totaled $61,516.
43
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
I. Inventories, Prepaid Costs and Deposits
Inventory in the amount of $206,029 and $44,988, for the Desert Willow Golf Course
Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities
Corporation (Component Unit), respectively, are reported at lower of cost or market.
Inventory in the amount of$4,043 in the Other Governmental Funds are also reported at
lower of cost or market. Inventory and prepaid costs are recorded as an expenditure when
consumed rather than purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid costs in the government-wide and fund financial statements.
The Measure A Special Revenue Fund has a deposit in the amount of$15,136,406 with
another governmental agency to pay for future construction of a City project.
Deposit of $20,000 in other governmental funds represents security deposit on rental of
commercial space.
m. Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following
property tax calendar:
Lien date: January 1
Levy date: July 1 to June 30
Due date: November 1 - 1st Installment
March 1 - 2nd Installment
Delinquent date: December 10 - 1st Installment
April 10 -2nd Installment
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes go into
a pool and are then allocated to the cities based on complex formulas prescribed by state
statutes. The City accrues only those taxes, which are received within 60 days after the
year-end. The City is a participant in the Teeter Plan under the California Revenue and
Taxation Code. The County of Riverside has responsibility for the collection of delinquent
taxes and the City receives 100% of the levy.
n. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment,
are classified as restricted assets on the balance sheet because they are maintained in
separate trustee bank accounts and their use is limited to applicable bond covenants. In
addition, funds have been restricted for future capital improvements by City resolution.
44
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 1: Summary of Significant Accounting Policies (Continued)
o. Pensions
For purposes of ineasuring the net pension liability and deferred outflows/inflows of
resources related to pensions, and pension expense, information about the fiduciary net
position of the DistricYs California Public Employees' Retirement System (CaIPERS) plans
(Plans) and additions to/deductions from the Plans' fiduciary net position have been
determined on the same basis as they are reported by CaIPERS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
p. Other Post-Employment Benefits (OPEB)
For purposes of ineasuring the total OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and the OPEB expense have been
determined by an independent actuary. For this purpose, benefit payments are recognized
when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to
liability and asset information within certain defined timeframes. For this report, the
following timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2019
Measurement Period June 30, 2018 to June 30, 2019
q. Use of Estimates
The financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America and,accordingly, include amounts that are based
on managemenYs best estimates and judgments. The financial statements include
estimates for the value of the capital assets (infrastructure), depreciation expense, the fair
value of investments, the amounts reported for the net pension liability and related items
(Note 11), the amounts reported for the net pension liability, net OPEB liability/(asset) and
related items (Note 15), and claims payable (Note 9). Accordingly, actual results could
differ from the estimates.
Note 2: Cash and Investments
As of June 30, 2020, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities $ 298,679,404
Business-type activities 8,131,446
Component unit 440,173
Fiduciary funds 57,759,428
Total cash and i nvestments $ 365,010,451
45
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Cash and investments at June 30, 2020, consisted of the following:
Primary Government
Demand accounts $ (6,589,586)
Petty cash 22,750
Investments 313,377,686
Total cash and investments- Primary Government $ 306,810,850
Component Unit
Demand accounts $ 440,173
Fiduciary Funds
Demand accounts $ 1,518,437
Pooled with primary government 13,507,706
Investments 42,733,285
Total cash and investments- Fiduciary Funds $ 57,759,428
The City of Palm Desert maintains a cash and investment pool that is available for use for all
funds. Each fund type's position in the pool is reported on the combined balance sheet as cash
and investments. The City has adopted an investment policy, which authorizes it to invest in
various investments.
Deposits
At June 30, 2020, the carrying amount of the deposits was $8,876,730, and the bank balance
was$10,521,027.The$1,644,297 difference represents outstanding checks,deposits in transit
and other reconciling items.
The California Government Code requires California banks and savings and loan associations
to secure an Entity's deposits by pledging government securities with a value of 110% of an
Entity's deposits. California law also allows financial institutions to secure deposits by pledging
first trust deed mortgage notes having a value of 150% of total deposits. The City Treasurer
may waive the collateral requirement for deposits that are fully insured up to $250,000 by the
FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by
an authorized Agent of Depository recognized by the State of California Department of Banking.
The collateral for deposits with savings and loan associations is generally held in safekeeping
by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository.These
securities are physically held in an undivided pool for all California public agency depositors.
Under Government Code Section 53655, the placement of securities by a bank or savings and
loan association with an Agent of Depository has the effect of perfecting the security interest in
the name of the local governmental agency.Accordingly, all collateral held by California Agents
of Depository are considered to be held for, and in the name of,the local governmental agency.
46
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2020
Note 2: Cash and Investments (Continued)
Investments
Under provision of the City's investment policy and in accordance with the California
Government Code, the following investments are authorized:
• United States Treasury bills, notes, bonds or certificates of indebtedness
• United States government-sponsored agency obligations, participations or other
instruments
• California State and Local Agency Debt
• Commercial Paper issued by general corporations
• Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a
savings association, a federal association or by a state-licensed branch of a foreign
bank
• Time Certificates of Deposit issued by qualified public depositories.
• Repurchase Agreements sold by authorized brokers
• Medium-term Notes issued by corporations organized and operating in the
United States, or by depository institutions operating in the United States and licensed
by the United States or by any state
• Money Market Mutual Funds that are registered with the SEC under the Investment
Act of 1940
• State of California Local Agency Investment Fund (LAIF) that is managed by the
State Treasurer's Office
• Structured Notes in the form of callable securities or "STRIPS" issued by the
United States Treasury, Federal Agencies or government-sponsored enterprises
• Local Government Investment Pools
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement
No. 31 establishes fair value standards for investments in participating interest earning
investment contracts, external investment pools, equity securities, option contracts, stock
warrants and stock rights that have readily determinable fair values.
The City Treasurer is authorized under state and municipal law to invest in various types of
securities that meet specified credit quality standards, based upon credit risk ratings assigned
by Standard and Poors (S&P), Fitch, or by Moody's Investor Services (Moody's). Permissible
City investments include medium-term notes that are rated "A" or higher at time of purchase;
commercial paper that is rated "A-1" or the equivalent; money market mutual funds that are
rated "AAA"; and United States Government and Federal Agency securities (the quality of
United States Treasury securities is not analyzed since they are not deemed to have 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. Presented below is the minimum rating required,
when applicable, by the California Government Code, the City's investment policy, or debt
agreements, and the rating by Standard and Poor's, Fitch and Moody's as of year-end for each
investment type.
47
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Primary Government
Minimum
Total as of Legal
Investment Type June 30,2020 Rating Aaa AAA Other Unrated
California Local Agency
Investment Fund $ 75,542,851 �llA $ - $ - $ - $ 75,542,851
California Asset Management
Program 104,376,776 rUA - 104,376,776 - -
Riverside County Treasurer's
Pooled Investment Fund 1,763,894 N/A 1,763,894 - - -
Medium-Term Corporate Notes 40,932,100 A 5,068,450 - 35,863,650 -
Commercial Paper 19,984,300 A1/P1 - - 19,984,300 -
Held by Fiscal Agent:
MoneyMarketDepositAccount 68,868,586 �1/A - - - 68,868,586
California Local Agency
InvestmentFund 1,909,179 f�/A - - - 1,909,179
Total $ 313,377,686 $ 6,832,344 $104,376,776 $ 55,847,950 $146,320,616
The ratings for the "Other"category above are as follows:
Investment Type Aa A P-1
Medium- Term Corporate Notes $20,504,200 $ 15,359,450 $ -
Commercial Paper - - 19,984,300
Total $20,504,200 $ 15,359,450 $ 19,984,300
48
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Fiduciary Funds
Minimum
Total as of Legal
Investment Type June 30,2020 Rating Aaa AAA Unrated
California Local Agency
InvestmentFund $ 739 N/A $ - $ - $ 739
California Asset
Management Program 5,719 N/A - 5,719 -
Riverside County Treasurer's
Pooled Investment Fund 335 N/A 335 - -
Investment in City Bonds-
Successor Agency RDA 668,000 N/A - - 668,000
Held by Fiscal Agent:
Money Market Deposit Accounts
Successor Agency RDA 37,228,940 N/A - - 37,228,940
Money Market Deposit Accounts
Assessment District 2,137,333 N/A - - 2,137,333
California Local Agency
Investment Fund-
Assessment District 2,692,219 N/A - - 2,692,219
Total $ 42,733,285 $ 335 $ 5,719 $ 42,727,231
Custodial Credit Risk
The 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 deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial credit
risk for the investments is the risk that, in the event of the failure of the counterparty to a
transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party.
As of June 30, 2020, none of the City's deposits or investments were exposed to custodial
credit risk.
49
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Concentration of Credit Risk
The City's investment policy imposes restrictions on the percentage the City can invest in
certain types of investments, which the City is in compliance. As of June 30, 2020, in
accordance with GASB Statement No. 40, if the City has invested more than 10% of its total
investments in any one issuer then they are exposed to concentration of credit risk. The City is
not invested in any one issuer that is more than 10% of its total investments.
The City's Investment policy imposes the following restrictions on the maximum percentage it
can invest in a single type of investment.
Portfolio Single Issuer
Issuer Maximum Maximum
United States Treasury Bills, Notes, Bonds 100% N/A
United States Government-Sponsored Agency
Securities 100% 30%
California State and Local Agency Debt 25% N/A
Commercial Paper 25% 10%
Negotiable Certificates of Deposit 15% N/A
Time Certificates of Deposit 15% N/A
Repurchase Agreements 20% N/A
Medium-Term Corporate Notes 25% 10%
Money Market Mutual Funds 20% N/A
Local Agency Investment Fund (LAIF) $75M/Acct N/A
Structured Notes (STRIPS) 20% N/A
Local Government In�stment Pools 75% N/A
N/A - Not Applicable
The City's policy is more conservative than state law, which has no issuer concentration limits
on federal agency debt.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The City's investment policy states
that the City shall not invest in securities with maturities exceeding five years. The City has
elected to use the segmented time distribution method of disclosure for its interest rate risk.
50
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
As of June 30, 2020, the City had the following investments and maturities:
Primary Government
Less Than 6 months- 1 year- Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Local Agency
Investment Fund $ 75,542,851 $ - $ - $ - $ 75,542,851
California Asset
Management Program 104,376,776 - - - 104,376,776
Riverside County Treasurer's
Pooled Investment Fund 1,763,894 - - - 1,763,894
Medium-Term Corporate Notes - - 40,932,100 - 40,932,100
Commercial Paper 19,984,300 - - - 19,984,300
Held by Fiscal Agent:
Money Market Deposit Accounts 68,868,586 - - - 68,868,586
California Local Agency
Investment Fund 1,909,179 - - - 1,909,179
Totallnvestments $ 272,445,586 $ - $ 40,932,100 $ - $ 313,377,686
Fiduciary Funds
Less Than 6 months- 1 year- Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Local Agency
Investment Fund $ 739 $ - $ - $ - $ 739
California Asset
Management Program 5,719 - - - 5,719
Riverside County Treasurer's
Pooled Investment Fund 335 - - - 335
Investment in City Bonds-
Successory Agency RDA 65,000 - 67,000 536,000 668,000
Held by Fiscal Agent:
Money Market Deposit Accounts-
Successory Agency RDA 37,228,940 - - - 37,228,940
Money Market Deposit Accounts-
Assessment District 2,137,333 - - - 2,137,333
LAIF-Assessment District 2,692,219 - - - 2,692,219
Totallnvestments $ 42,130,285 $ - $ 67,000 $ 536,000 $ 42,733,285
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF)that is regulated
by California Government Code Section 16429 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 relation 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.
51
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Investment in California Asset Management Program
The California Asset Management Program (CAMP) is a public joint powers authority which
provides California Public Agencies with investment management services for surplus funds
and comprehensive investment management, accounting and arbitrage rebate calculation
services for proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve
Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these
funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial
interest. Participants may also establish individual, professionally managed investment
accounts (Individual Portfolios) by separate agreement with the Investment Advisor.
Investments in the Pools and Individual Portfolios are made only in investments in which
Public Agencies generally are permitted by California statute. The CAMP may reject any
investment and may limit the size of a Participant's account. The Pool seeks to maintain, but
does not guarantee, a constant net asset value of$1.00 per share.A Participant may withdraw
funds from its Pool accounts at any time by check or wire transfers. Requests for same-day
wire transfers must be made by 11:00 a.m. that day. Fair value of the Pool is determined by
the fair value per share of the Pool's underlying portfolio.
Investment in Riverside County Treasurer's Pooled Investment Fund
The City is a voluntary participant in the Riverside County Treasurer's Pooled Investment Fund
(Pooled Fund). 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 that the Riverside County Treasurer's Office has provided for the entire Pooled Fund
(in relation to the amortized cost of that portfolio).The balance available for withdrawal is based
upon the accounting records that the Riverside County Treasurer's Office maintains,which are
recorded on an amortized cost basis.
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the relative inputs used to
measure the fair value of the investments.The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical
assets in active markets that the City has the ability to access.
Level 2: Inputs to the valuation methodology include:
• Quoted prices for similar assets in active markets;
• Quoted prices for identical or similar assets in inactive markets;
• Inputs other than quoted prices that are observable for the asset;
• Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
52
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair
value measurement. Unobservable inputs reflect the City's own assumptions
about the inputs market participants would use in pricing the asset
(including assumptions about risk). Unobservable inputs are developed based on
the best information available in the circumstances and may include the City's
own data.
The asseYs level within the hierarchy is based on the lowest level of input that is significant to
the fair value measurement. Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs.
The determination of what constitutes observable requires judgment by the City's
management. City management considers observable data to be that market data which is
readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and
provided by multiple independent sources that are actively involved in the relevant market.
The categorization of an investment within the hierarchy is based upon the relative observability
of the inputs to its fair value measurement and does not necessarily correspond to City
management's perceived risk of that investment.
The methods described may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. The use of different methodologies or
assumptions to determine the fair value of certain financial instruments could result in a
different fair value measurement at the reporting date.
When available, quoted prices are used to determine fair value. When quoted prices in active
markets are available, investments are classified within Level 1 of the fair value hierarchy.
When quoted prices in active markets are not available, fair values are based on evaluated
prices received by City's asset manager from third party service provider.
The following is a description of the recurring valuation methods and assumptions used by the
City to estimate the fair value of its investments.
For a large portion of the City's portfolio,the City's custodian applies their leveling methodology
across all securities in a specific sector(i.e. U.S. Government Sponsored Agency Securities).
Inputs to their pricing models are based on observable market inputs in active markets.
The Successor Agency Former RDA's investment in City bonds is not tradable and is
categorized in Level 3. When valuing Level 3 securities, the inputs or methodology are not
necessarily an indication of the risks associated with investing in those securities. Changes in
valuation techniques may result in transfers into or out of an assigned level within the disclosure
hierarchy.
53
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 2: Cash and Investments (Continued)
Primary Government
Quoted Observable Unobservable
Prices Inputs Inputs
Investment Type Level 1 Level 2 Level 3 Total
Medium-Term Corporate Notes $ - $ 40,932,100 $ - $ 40,932,100
Commercial Paper - 19,984,300 - 19,984,300
Total Leveled Investments $ - $ 60,916,400 $ - 60,916,400
California Local Agency Investment Fund* 75,542,851
California Asset Management Program' 104,376,776
Riverside County Treasurer's
Pooled Investment Fund" 1,763,894
Held by Fiscal Agent:
Money Market Deposit Accounts� 68,868,586
California Local Agency Investment Fund� 1,909,179
Total Investment Portfolio $ 313,377,686
Fiduciary Funds
Quoted Observable Unobservable
Prices Inputs Inputs
Investment Type Level 1 Level 2 Level 3 Total
Investment in City Bonds-
Successor Agency Former RDA $ - $ - $ 668,000 $ 668,000
Total Leveled Investments $ - $ - $ 668,000 668,000
California Local Agency Investment Fund� 739
California Asset Management Program* 5,719
Riverside County Treasurer's
Pooled Investment Fund' 335
Held by Fiscal Agent:
Money Market Deposit Accounts'-
Successor Agency Former RDA 37,228,940
Money Market Deposit Accounts*-
Assessment District 2,137,333
LAIF*-Assessment District 2,692,219
Total Investment Portfolio $ 42,733,285
* Not subject to fair value measurements
54
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 3: Receivables
Primary Government's Governmental Funds
Notes and Loans Receivable:
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured
on the property tax rolls of those properties benefiting from the improvements. Bond maturities
began September 2,2007,and continue annually through 2036.The interest rates of the bonds
range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the
bonds and reports a receivable in the general fund that corresponds to the outstanding principal
on the bonds. As of June 30, 2020, the receivable balance was $1,178,000.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off
the principal of the respective properties assessment. In turn, the residents agreed to pay to
the City the full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full
amount of the loan along with all accrued interest is due and payable at the earliest of
September 2, 2036 or any change in ownership of the property. As of June 30, 2020, the total
receivable from the Highlands Deferral Loan Program was$14,978.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have
been transferred to the Housing Asset Fund as the successor housing entity. The Housing
Asset Fund has a loan receivable for the construction of a multi-family affordable housing
development dated June 14, 2001, with a balance of $6,148,813 due from the Palm Desert
Development Company. The loan is secured by a Deed of Trust with assignment to property,
rent and fixtures on the housing development located in Palm Desert. Interest is earned and
due annually at a rate of 1%per annum from the date on which the final certificate of occupancy
is issued. Principal on the loan is based on the applicable agency's percentage of positive net
cash flow derived from the operations of the Development.
On August 28, 2008, the City Council approved through resolution the Energy Independence
Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City
to create the funding mechanism to assist the residents and businesses entering into a loan
agreement with the City and providing the money for the borrowers to acquire and install energy
efficient improvements. Assembly Bill AB811 allows the City to lien the properties through
annual property tax assessments for a period not to exceed 20 years. To date,
279 residents and business owners entered into loan agreements with the City and have
completed their improvements through the EIP program, as of June 30, 2020, 141 loans have
been repaid. The loans are payable in two annual installments for a period of 5 years to
20 years at an interest rate of 7°/o annually. On June 30, 2020,the outstanding loans receivable
through the EIP Program was $2,283,863.
55
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 3: Receivables (Continued)
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have
been transferred to the Palm Desert Housing Authority as the successor housing entity. The
Housing Authority has loans for several other projects, all of which are secured by a deed of
trust. A valuation allowance equal to the loan balance has been recognized since there is a
significant possibility that these loans will either become uncollectible or forgiven by the
Housing Authority at a future date if all the terms of the loans have been met.
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help Housing $ 429,000 7.25% 30 years Deed of Trust
Program or 2024 Loan balance and interest due
upon maturity, unpaid balance of
loan or interest will bear an
interest rate of 12%.
Home Impro�ment $ 330,980 N/A N/A Deed of Trust
Loans (1) Loan is payable upon change or
transfer of title, refinancing or
upon the death of the borrower.
Restricti�e co�2nants are placed
against property to maintain
affordability for up to 45 years in
exchange for fawrable loan
terms.
Portola Palms $ 74,580 3.00°/o 30 years Deed of Trust Loan balance and interest will be
Mobile Home Park from date forgi�n at maturity if debtor does
of loan not breach the terms and
conditions of either the unit
regulatory agreement or note.
Desert Rose(1) $ 2,449,491 3.00% 30-45 Deed of Trust Loan will be forgi�n at maturity
years' unless the debtor is in violation of
from date the unit regulatory agreement or
of loan the deed of trust.
Falcon Crest(1) $ 5,387,121 3.00°/o 30-45 Deed ofTrust Loan is payable upon change or
years� transfer of title, refinancing or
from date upon the death of the borrower.
of loan
Acquisition, $ 190,510 3.00% 30-45 Deed of Trust Loan is payable upon change or
Rehabilitation, years Assignment of transfer of title, refinancing or
Resale from date Rent upon the death of the borrower.
of loan Restrictive co�nants are place
against property to maintain
affordability from up to 45 years
in exchange for fawrable loan
terms.
"All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive co�nant.
(1)Portion of deferred loans are from funding sources other than Housing Authority.
56
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 4: Interfund Receivables, Payable and Transfers
Due To/From Other Funds
The composition of interfund balances as of June 30, 2020, was as follows:
Due To Due From Amount
General Fund Other Governmental Funds $ 1,674,974
Desert Willow Golf Course 1,500,000
Capital Properties 879,596
Housing Asset Fund General Fund 835,818
Other Governmental Funds 1,279,275
Other Governmental Funds Desert Willow Gold Course 500,000
$ 6,669,663
The General Fund advanced $1,668,000 to the Energy Independence Special Revenue Fund
to payoff the bonds used to fund energy efficiency, loaned $1,500,000 to Desert Willow Golf
Course to fund the daily operations, including the daily operations of the restaurant, and
advanced $879,596 and $6,974 to the Capital Properties and Community Development Block
Grant, respectively, to cover cash shortfall at year end.
The Housing Asset Fund amounts are related to the advances due from the Successor Agency
(former Redevelopment Agency) per AB 1484.
The Other Governmental Funds advanced $500,000 to Desert Willow Golf Course for
operations during the construction phase of the clubhouse and kitchen expansion.
Due To/From Component Unit
Due From
Component
Unit
Major Funds:
General Fund $ 324,000
Desert Willow Golf Course 969,673
$ 1,293,673
The receivable by the General Fund is for rent owed by the Palm Desert Recreational Facilities
Corporation (PDRFC), and the receivable by the Desert Willow Golf Course represents funds
loaned to PDRFC for operation.
57
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 4: Interfund Receivables, Payable and Transfers (Continued)
Interfund Transfers
The composition of interfund transfers as of June 30, 2020, was as follows:
Transfers In
Prop A Fire Other
Tax Special Go�rnmental Internal Service
Transfers Out General Fund Re�nenue Fund Funds Fund Totals
General Fund $ - $ 3,000,000 $ 4,961,276 $ 675,203 $ 8,636,479
Housing Authority
Special Revenue Fund - - 268,510 - 268,510
Other Go�rnmental
Funds 2,472,976 - - - 2,472,976
Totals $ 2,472,976 $ 3,000,000 $ 5,229,786 $ 675,203 $ 11,377,965
Transfers are used to:
1. Transfer revenues to provide for capital projects.
2. Transfer revenues to provide for additional resources to pay for expenditures.
3. Transfer to cover future cost of assets.
58
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 5: Capital Assets
A summary of changes in capital assets at June 30, 2020, was as follows:
Primary Government—Governmental Activities
Balance at Balance at
July 1, 2019 Transfers Additions Deletions June 30, 2020
Capital assets not being depreciated:
Land $ 81,958,949 $ - $ - $ - $ 81,958,949
Right-of-way 121,095,645 - 114,400 - 121,210,045
Construction-in-progress 2,119,467 - 2,078,458 (212,811) 3,985,114
Internal Service Fund-
Construction-in-progress 32,414 (32,414) - - -
Total Capital Assets Not
being Depreciated 205,206,475 (32,414) 2,192,858 (212,811) 207,154,108
Capital assets being depreciated:
Buildings 144,174,975 - 56,168 - 144,231,143
Impro�ments otherthan buildings 60,630,131 - 48,975 - 60,679,106
Machinery and equipment 10,573,483 - 354,887 (274,210) 10,654,160
Infrastructure 241,725,688 - 2,465,080 - 244,190,768
Equipment-Internal service fund 6,669,742 32,414 1,152,638 (642,659) 7,212,135
Total Capital Assets
being Depreciated 463,774,019 32,414 4,077,748 (916,869) 466,967,312
Less accumulated depreciation for:
Buildings (67,567,578) - (3,499,944) - (71,067,522)
Impro�ments otherthan buildings (42,771,642) - (2,164,420) - (44,936,062)
Machinery and equipment (9,914,283) - (259,164) 274,210 (9,899,237)
Infrastructure (114,242,379) - (5,112,807) - (119,355,186)
Equipment-Internal service fund (4,755,063) - (575,203) 630,817 (4,699,449)
Total Accumulated
Depreciation (239,250,945) - (11,611,538) 905,027 (249,957,456)
Total Capital Assets
Being Depreciated, Net 224,523,074 32,414 (7,533,790) (11,842) 217,009,856
Capital assets, net-
Go�rnmental Acti�ities $ 429,729,549 $ - $ (5,340,932) $ (224,653) $ 424,163,964
59
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 5: Capital Assets (Continued)
A summary of changes in capital assets at June 30, 2020, was as follows:
Primary Government—Business-Type Activities
Balance at Balance at
July 1,2019 Additions Deletions June 30,2020
Capital assets,not being depreciated:
Land $ 53,304,965 $ - $ - $ 53,304,965
Total capital assets, not being depreciated 53,304,965 - - 53,304,965
Capital assets,being depreciated:
Buildings and improvements 27,967,530 74,064 - 28,041,594
Machineryand equipment 6,405,961 210,352 - 6,616,313
Total capital assets,being depreciated 34,373,491 284,416 - 34,657,907
Less accumulated depreciation for:
Buildings and improvements (12,653,118) (834,769) - (13,487,887)
Machineryand equipment (4,359,210) (576,705) - (4,935,915)
Total accumulated depreciation (17,012,328) (1,411,474) - (18,423,802)
Total capital assets being depreciated,net 17,361,163 (1,127,058) - 16,234,105
Capital assets,net-Business-Type Activities $ 70,666,128 $ (1,127,058) $ - $ 69,539,070
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government $ 1,844,700
Housing and redevelopment 1,702,095
Public safety 81,190
Public works 5,661,762
Parks, recreation and culture 1,746,588
Depreciation e�enses for internal service funds is charged to
various functions based on usage of capital assets 575,203
Total depreciation expense- governmental activities $ 11,611,538
Business-Type Activities:
Parkview Office complex $ 299,168
Desert Willow Golf Course 1,112,306
Total depreciation e�ense- business-type activities $ 1,411,474
60
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 6: Long-Term Debt
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2020.
Primary Government—Governmental Activities
Balance Balance Due Within
June 30,2019 Additions Reductions June 30,2020 One Year
Direct Borrowing:
Special assessment debt with
governmentcommitment $ 1,310,000 $ - $ (132,000) $ 1,178,000 $ 48,000
Limited obligation
improvement bonds 761,000 - (93,000) 668,000 65,000
Total $ 2,071,000 $ - $ (225,000) $ 1,846,000 $ 113,000
Debt service payments for the special assessment debt with government commitment, tax
allocation bonds and notes payable are made from debt service funds and a special revenue
fund.
The City historically allocates costs to liquidate liabilities for compensated absences and
pension liability based on the allocation of the employees earning the respective benefits and
their respective payroll expense to various fund across the City.
Special Assessment Debt with Government Commitment
Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement
Bonds, Series 2006
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured
on the property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential
obligation to provide additional funds to pay the debt service, therefore these bonds are
reported as special assessment debt with government commitment. Bond maturities begin
September 2, 2007, and continue annually through 2036.The interest rates of the bonds range
from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record of the bonds
and the City does not own the constructed assets.
61
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 6: Long-Term Debt(Continued)
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 48,000 $ 59,209 $ 107,209
2022 48,000 56,797 104,797
2023 50,000 54,310 104,310
2024 52,000 51,709 103,709
2025 55,000 48,981 103,981
2026-2030 320,000 198,472 518,472
2031-2035 410,000 105,060 515,060
2036-2037 195,000 10,171 205,171
Total $ 1,178,000 $ 584,709 $ 1,762,709
Limited Obligation Bonds
Limited Obliqation Improvement Bonds Series 2009A(Taxable)
On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds
Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City's Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a
bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds
equal to par value.
The Series 2009A (Taxable) bonds consist of $2,015,000 Serial Bonds with interest at
3% payable semiannually on September 2 and March 2. Bond maturities commenced
September 2, 2010, and continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds
Series 2009A(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 32,000 $ 10,170 $ 42,170
2022 33,000 9,195 42,195
2023 34,000 8,190 42,190
2024 35,000 7,155 42,155
2025 36,000 6,090 42,090
2026-2030 185,000 14,175 199,175
Total $ 355,000 $ 54,975 $ 409,975
62
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 6: Long-Term Debt(Continued)
Limited Obliqation Improvement Bonds Series 2009B (Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds
Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City's Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a
bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds
equal to par value.
The Series 2009B (Taxable) bonds consist of $1,136,000 Serial Bonds with interest at
3% payable semiannually on September 2 and March 2. Bond maturities commenced
September 2, 2010, and continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds
Series 2009B (Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 33,000 $ 8,895 $ 41,895
2022 34,000 7,890 41,890
2023 35,000 6,855 41,855
2024 36,000 5,790 41,790
2025 37,000 4,695 41,695
2026-2030 138,000 10,560 148,560
Total $ 313,000 $ 44,685 $ 357,685
Note 7: Compensated Absences
The City's policy relating to compensated absences is described in Note 1 of the Notes to
Financial Statements. This liability will be paid in future years from future resources in the
internal service fund. The outstanding liability for compensated absences accrued was
$2,575,071.
Balance Balance Due Within
June 30, 2019 Additions Deletions June 30, 2020 One Year
$ 2,628,215 $ 1,364,213 $ 1,417,357 $ 2,575,071 $ 300,000
Note 8: Capital Leases
Primary Government—Business-type Activities
Balance Balance Due Within
June 30, 2019 Additions Reductions June 30,2020 One Year
Capitalleases $ 1,595,394 $ - $ (450,383) $ 1,145,011 $ 469,236
63
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 8: Capital Leases (Continued)
Obligations under capital leases are as follows:
Club Car National Account - The present value of the minimum lease payment
on the Club Car cart fleet equipment was capitalized at $471,909 using an
interest rate of 5.75°/o. Lease is payable in 48 months, commencing on
February 1, 2019. Payments are $12,330 monthly. The lease agreement was
executed on June 12, 2018.
$ 317,008
GPSI Leasing, LLC - The present value of the minimum lease payment on the
GPSI Visage Golf Cart GPS System was capitalized at $267,040 using an
interest rate of 5.75%. On December 27, 2018 GPSI lease was amended to
extend for an additional 48 months and lower the payment to $5,792. The
amended lease was payable in 48 monthly installments of $5,792 beginning
November 1, 2018. 174,004
PNC Equipment Finance LLC - The present value of the minimum lease
payment on the Toro golf course maintenance equipment was capitalized at
$1,399,284 using an interest rate of 2.95%. Lease is payable in 60 monthly
installments of $25,078 beginning on October 1, 2017. The lease was executed
on June 21, 2017. 653,999
Present value of net minimum lease payments 1,145,011
Less: current portion (469,236)
$ 675,775
The following is a schedule, by year, of future minimum lease payments and present value of
the net minimum lease payments for capital leases as of June 30, 2020:
Year Ending Minimum Lease
June 30, Payments
2021 $ 523,780
2022 523,780
2023 198,987
Total 1,246,547
Less: amounts representing interest (101,536)
Present value of net minimum lease payments $ 1,145,011
The assets acquired through capital lease are as follows:
Machinery and equipment $ 2,461,344
Less: accumulated depreciation (1,369,815)
$ 1,091,529
64
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 9: Claims and Judgements Payable
Estimates for all workers'compensation and general liabilities up to the self-insured levels have
been recorded as long-term liabilities.
Changes in claims liabilities during the past two years are as follows:
June 30, 2019 June 30, 2020
Claims payable- Beginning of year $ 360,237 $ 584,439
Incurred claims (including IBNR) and
changes in estimates 763,571 41,690
Claims payments (539,369) (579,134)
Claims payable- End of year $ 584,439 $ 46,995
Note 10: Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all City employees, permits them to
defer a portion of their salary until future years. The deferred compensation is not available to
employees until termination, retirement, death or unforeseeable emergency. Pursuant to
changes in August 1996, of IRC Section 457, in January 1997, the City established a trust in
which all assets held by Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement
Corporation (ICMA) were placed. The City does not have fiduciary responsibility for the plan
assets held by NRS and ICMA. The assets, all property and rights purchased with such
amounts and all income attributable to such amounts are held in trust for the exclusive benefit
of the participants and the beneficiaries. The assets are no longer the property of the City, and
as such, are no longer subject to the claims of the City's general creditors. As a result, the
assets in the amount of$15,714,165 held by NRS and ICMA of the 457 Plan are not reflected
in the City's financial statements.
Note 11: Pension Plan
a. General Information about the Pension Plan:
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City's
Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered
by the California Public Employees' Retirement System (CaIPERS), which acts as a
common investment and administrative agent for its participating member employers.
Benefit provisions under the Plan are established by State statute and City resolution.
CaIPERS issues publicly available reports that include a full description of the pension plan
regarding benefit provisions, assumptions and membership information that can be found
on the CaIPERS website.
65
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 11: Pension Plan (Continued)
Benefits Provided
CaIPERS 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
1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living
adjustments for the plan are applied as specified by the Public Employees' Retirement
Law.
The Plan's provisions and benefits in effect at measurement date, are summarized as
follows:
Miscellaneous
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of ser�ice 5 years of ser�ice
Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 2.0% -2.7% 1.0% -2.5%
Required employee contribution rates 7%-8% 6.25%
Required employer contribution rates 12.458% 12.458%
Employer Payment of Unfunded Liability $3,317,374 $3,317,374
Employees Covered
At June 30, 2020, the following employees were covered by the benefit terms for all Plans:
Inactive employees or beneficiaries currently receiving benefits 165
Inactive employees entitled to but not yet receiving benefits 76
Active employees 104
Total 345
Contributions
Section 20814(c) of the California Public Employees' Retirement Law 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 for both Plans are determined annually on an actuarial basis as of
June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary
to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. The City is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees.
66
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 11: Pension Plan (Continued)
b. Net Pension Liability
The City's net pension liability for the Plan is measured as the total pension liability, less
the pension plan's fiduciary net position. The net pension liability of Plan is measured as
of June 30, 2018, using an annual actuarial valuation as of June 30, 2017 rolled forward to
June 30, 2018 using standard update procedures. A summary of principal assumptions
and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30,2018 actuarial valuations were determined using
the following actuarial assumptions:
Valuation date June 30, 2018
Measurement date June 30, 2019
Actuarial cost method Entry age normal
Actuarial assumptions:
Discount rate 7.15%
I nflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase Varies by Entry Age and Service
Investment Rate of Return 7.375% Net of Pension Plan Investment and
Administrative E�enses; includes Inflation
Mortality rate table* Derived using CaIPERS' membership data
for all funds
*The mortality table used was developed based on CaIPERS-specific data. The table
includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of
scale MP 2016. For more details on this table, please refer to the December 2017
experience study report (based on CaIPERS demographic data from 1997 to 2015) that
can be found on the CaIPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Plan. To
determine whether the municipal bond rate should be used in the calculation of a discount
rate for the plan, CaIPERS stress tested plans that would most likely result in a discount
rate that would be different from the actuarially assumed discount rate. Based on the
testing of the Plans, the tests revealed the assets would not run out. Therefore, the current
7.15%discount rate is appropriate and the use of the municipal bond rate calculation is not
deemed necessary. The long term expected discount rate of 7.15% is applied to all plans
in the Public Employees Retirement Fund (PERF). The stress test results are presented in
a detailed report called "GASB Crossover Testing ReporY' that can be obtained from the
CaIPERS website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
67
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 11: Pension Plan (Continued)
In determining the long-term expected rate of return, CaIPERS took into account both
short-term and long-term market return expectations as well as the expected pension fund
cash flows. Such cash flows were developed assuming that both members and employers
will make their required contributions on time and as scheduled in all future years. 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 set by calculating the single equivalent expected return that arrived at the
same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. 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 table below reflects the lo-ng-term expected real rate of return by asset class.The rate
of return was calculated using the capital market assumptions applied to determine the
discount rate and asset allocation. The target allocation shown was adopted by the
CaIPERS Board effective on July 1, 2014.
New Strategic Real Return Real Return
Asset Class Allocation Years 1-10 (1) Years 11+ (2)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00°/o 0.77% 1.81%
Private Equity 8.00°/o 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(1) An expected inflation of 2.00% used for this period.
(2) An expected inflation of 2.92% used for this period
68
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 11: Pension Plan (Continued)
c. Changes in the Net Pension Liability
The changes in the net pension liability for the year ended June 30, 2020, with a
measurement date of June 30, 2019, for the Miscellaneous Plan are as follows:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability(Asset)
Balance at June 30, 2018(Measurement Date) $ 129,976,022 $ 95,138,442 $ 34,837,580
Changes in the Year:
Service Cost 1,973,971 - 1,973,971
Interest on the Total Pension Liability 9,261,660 - 9,261,660
Difference beiween E�ected and Actual E�erience 1,762,387 - 1,762,387
Contributions- Employer - 5,963,737 (5,963,737)
Contributions- Employees - 791,794 (791,794)
Net Investment Income - 6,322,815 (6,322,815)
Benefit Payments including Refunds of Employee
Contributions (6,383,377) (6,383,377) -
Administrative e�ense - (67,893) 67,893
Other Misc Income/(E�ense) - 222 (222)
Net Changes 6,614,641 6,627,298 (12,657)
Balance at June 30, 2019(Measurement Date) $ 136,590,663 $ 101,765,740 $ 34,824,923
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for the Plan, calculated using the
discount rate for the Plan, as well as what the City's net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower or 1-percentage point
higher than the current rate:
1% Decrease 6.15%
Net Pension Liability $ 53,067,914
Current Discount Rate 7.15%
Net Pension Liability $ 34,824,923
1% I ncrease 8.15%
Net Pension Liability $ 19,714,298
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued CaIPERS financial reports.
Change of Assumptions
In 2019, there were no changes in the discount rate or the inflation rate.
69
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 11: Pension Plan (Continued)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2020, the City recognized pension expense of$6,581,194.At
June 30, 2020, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 4,521,813 $ -
Difference between actual and e�ected e�erience 1,109,651 (198,294)
Change in Assumptions - (382,902)
Net difference between projected and actual earnings on
pension plan investments - (557,605)
Total $ 5,631,464 $ (1,138,801)
$4,521,813 reported as deferred outflows of resources related to contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the
year ending June 30, 2020. Other amounts reported as deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ending
June 30 Amount
2021 $ 373,170
2022 (339,934)
2023 (160,168)
2024 97,782
2025 -
Thereafter -
Total $ (29,150)
e. Payable to the Pension Plan
At June 30, 2020, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2020.
70
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 12: Fund Balances
In the fund financial statements, reserves segregate portions of fund balances that are either
not available or have been earmarked for specific purposes. The various reserves established
as of June 30, 2020, were as follows:
Capital Projects
Special Revenue Funds Fund
Housing Asset Other GovernmenWl
General Fund Measure A Prop A Fire Tax Fund Housing AuthoriTy Capifal Properties Funds Total
Nonspendable:
Advances $ 5,900,296 $ - $ - $ - $ - $ - $ - $ 5,900,296
Loans and notes receivable 1,192,978 - - - - - - 1,192,978
Prepaid costs 102,818 15,705 118,523
Total Nonspendable 7,796,092 15,705 7,277,797
Restricted for:
Capital projects:
Assessmentdistrictsimpm�ements - - - - - - 2,107,145 2,107,145
Capital bond pmjects 4,937,434 6L830,866 66,768,300
Total capital projects 4,937,434 6L830,866 2,107,145 68,875,445
Debtservice 65,316 65,316
Law income housing:
Projects and programs - - - 43,628,848 - - 3,489,660 47,118,508
Apadments S,552,132 $552,132
Total low income housing 43,628,848 $552,132 3,489,660 55,670,640
Public facilities:
Park facili�ies - - - - - - 1,588,447 1,588,447
Childcarefacilities - - - - - - 1,479,284 1,479,284
City hacilities L530,266 1,530,266
Total public facilities 4,597,997 4,597,997
Public safety:
Firefacilities - - - - - - 1,212,787 1,212,787
Fire operation - - 4,418,202 - - - - 4,418,202
Police programs&equipment 626,572 626,572
Total public safety 4,418,202 1,839,359 6,257,561
Special programs:
Communityprojects - - - - - - 45,113 45,113
Recycling pmjects - - - - - - 2,650,671 2,65q671
Special disMct ad�dising - - - - - - 45,712 45,712
Airqualiryprojects - - - - - - 25,025 25,025
Landscaping and lighting - - - - - - 3,917,539 3,917,539
Art constmction&improvements 1,261,476 1,261,476
Total special pmgrems 7,945,536 7,945,536
Street related purposes:
Constmction&impm�ements - 4,143,239 - - - - - 4,143,239
Streetresurfacing - - - - - - 3,848,995 3,848,995
Facilitiesmaintenanceresene - 16,320,663 - - - - - 16,320,663
Drainage projects - - - - - - 664,010 664,010
Traffic signals projects 417,052 417,052
Total street related purposes 2Q463,902 4,93q057 25,393,959
TOWI Restricted 20,463,902 4,418,202 48,566,282 8,552,132 61,830,866 24,975,070 768,806,454
Committed to:
Aquaticcenter - - - - - - 2,134,436 2,134,436
Capital asset replacement - - - - 11,875,488 - - 11,875,488
Capital impro�ement projecis resene 13,888,779 - - - - - - 13,888,779
Facilities maintenance reservE 20,761,965 - - - - - - 2Q761,965
Liability resene 4,OOQ000 - - - - - - 4,000,000
Olherfund stability reserve 6,611,508 - - - - - - 6,611,508
Emergency/contingency resenR 9,728,667 - - - - - - 9,728,667
Employment benefts reserve 9,121,496 - - - - - - 9,121,496
Economic de�lopment I
land acquisition resenR 1,900,000 - - - - - - 1,900,000
Energy loan program - - 2,265,449 2,265,449
ToWI Committed 66,012,475 11,875,488 4,399,885 82,287,788
Assigned to:
Generaliund operating reserve 14,697,232 - - - - - - 14,697,232
Capital projects:
Facilities maintenance reserve - - - - - - 238,787 238,787
City capital outlay projecis iQ550,364 10,55Q364
Total capital projects 10,789,151 10,789,151
Propetly acquisition 420,387 42Q387
Community wnlingency 444,000 444,000
Public facilities:
Parks facilities 37,847 - - - - - - 37,847
Facilities maintenance resene - - - - - - 2,921,055 2,921,055
Public facilities - - - - - - 715,893 715,893
Golffacilities 7,459,076 7,459,076
Total public facilities 37,847 11,096,024 11,133,871
Special programs:
Library - - - - - - 672,392 672,392
United Palm Desert - - - - - - 2,000,000 2,000,000
Professional sertices 899,470 - - - - - - 899,470
Total special programs 899,470 2,672,392 3,571,862
Street related purposes:
Street maintenance 118,015 - - - - - - 118,015
Facilities maintenance resene 2,155,861 2,155,861
Total street related purposes 118,015 2,155,861 2,273,876
ToWI Assigned 16,796,564 27,133,815 43,330,379
Unassigned 3,473,480 3,473,480
ToWls $ 92,878,551 $ 20,463,902 $ 4,418,202 $ 48,566,282 $ 20,427,620 $ 67,830,866 $ 56,524,475 $ 305,709,898
71
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 12: Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable - This classification 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 - This classification includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific
purposes determined by a formal action of the City Council. The City considers the adoption of
a resolution to institute a formal action of City Council for the purpose of establishing, modifying
or rescinding committed fund balances.
Assiqned - This classification includes amounts to be used by the government for specific
purposes but do not meet the criteria to be classified as restricted or committed. This includes
amounts that are assigned through adoption of a resolution by City Council. The Council may
delegate the ability of an employee or committee to assign uses of specific funds, for specific
purposes. Such delegation of authority occurred on September 27'", 2018 and will be in effect
for future fiscal years.
Unassigned - This classification includes the residual balance for the governmenYs general
fund and includes all spendable amounts not contained in other classifications. In other funds,
the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed or
assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City's policy is to apply restricted fund balance first.
When an expenditure is incurred for purposes for which committed, assigned or unassigned
fund balances are available, the City's policy is to apply committed fund balance first, then
assigned fund balance, and finally unassigned fund balance.
Note 13: Risk Management
a. Description of Self-Insurance Pool Pursuant to Joint Power Agreement
The City of Palm Desert is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 118 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 Authority began
covering claims of its members in 1978. Each member government has an elected official
as its representative on the Board of Directors which operates through a nine-member
Executive Committee.
72
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 13: Risk Management (Continued)
b. Primary Self-Insurance Programs of the Authority
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 an actuarial analysis. Costs are allocated to individual agencies based on payroll
and claims history, relative to other members of the risk-sharing pool.
Primary Liabilitv Proqram
In the liability program, claims are pooled separately between police and general
government exposures. (1)The payroll of each member is evaluated relative to the payroll
of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3)The second layer of losses includes incurred costs from$30,000 to$750,000
for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed
based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is
$50 million per occurrence. Costs of covered claim for subsidence losses have a
sub-limit of$40 million per occurrence. The coverage structure includes retained risk that
is pooled among members, reinsurance, and excess insurance. More detailed information
about the various layers of coverage is available on the following website:
https://cjpia.org/protection/coverage-programs.
Primary Workers' Compensation Proqram
Claims are pooled separately between public safety (police and fire) and general
government exposures. (1)The payroll of each member is evaluated relative to the payroll
of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3)The second layer of losses includes incurred costs from $50,000 to$100,000
for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the second layer. (4) Incurred costs in excess from $100,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2019-20,the 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 as part of a reinsurance policy, and Employer's Liability losses from $5 million
to $10 million are pooled among members.
73
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 13: Risk Management (Continued)
c. Purchased Insurance
Pollution Leqal Liabilitv Insurance
The City of Palm Desert participates in the pollution legal liability insurance program which
is available through the Authority. The policy covers sudden and gradual pollution of
scheduled property, streets, and storm drains owned by the City of Palm Desert. Coverage
is on a claims-made basis. There is a $50,000 deductible. The Authority has an aggregate
limit of $50 million for the 3-year period from July 1, 2017 through July 1, 2020. Each
member of the Authority has a $10 million sub-limit during the 3-year policy term.
Property Insurance
The City of Palm Desert participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. The
City of Palm DeserYs property is currently insured according to a schedule of covered
property submitted by the City of Palm Desert to the Authority. The City of Palm DeserYs
property currently has all-risk property insurance protection in the amount of$264,079,707.
There is a$10,000 deductible per occurrence except for non-emergency vehicle insurance,
which has a $2,500 deductible.
Crime Insurance
The City of Palm Desert purchases crime insurance coverage in the amount of
$10,000,000 with a $2,500 deductible. The fidelity coverage is provided through the
Authority.
Special Event Tenant User Liability Insurance
The City or Palm Desert 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 Palm Desert according to a schedule. The City of Palm Desert then pays for the
insurance. The insurance is facilitated by the Authority.
d. 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. There were no
significant reductions in pooled or insured liability coverage in the fiscal year
2019-20.
74
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 14: Unearned Revenues and Deferred Inflows of Resources
Unearned Revenues
Major Governmental Funds
Measure A Special Revenue Fund has $15,136,406 in funds received from the Successor
Agency that are deemed unearned until expenditures are incurred related to construction of
interchange.
Housinq Authority Special Revenue Fund has other amounts reported as unearned revenues
include $15,659 for prepaid rents.
Other Governmental Funds
Special Revenue Funds
$163,046 of grant funds are deemed unearned until expenditures are incurred in the Public
Safety Police Grants Fund.
$13,428 of grant funds are deemed unearned until expenditures are incurred in the
Recycling Fund.
Capital Proiects Fund
Capital Projects Reserve fund has$63,041 of unearned revenue represents deposits for street
improvements and public facilities, as the funds have not been spent as of June 30, 2020.
Business-type Activities
The balance of $238,252 represents the unused portions of prepaid golf fees and value of
unredeemed gift certificates.
The balance of$12,314 represents the unearned rent for the Parkview Office.
Component Unit
The balance of$83,677 represents the unused portions of prepaid banquets.
75
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 14: Unearned Revenues and Deferred Inflows of Resources (Continued)
Deferred Inflows of Resources
Major Governmental Funds
General Fund
On March 13, 1997,the former Redevelopment Agency(Agency)purchased land from the City
for the purpose of developing a second golf course financed by a note in the amount of
$2,055,000. The note has no specific due date. Recognition of the revenue from the sale has
been reported as deferred inflows of resources until it becomes available.At June 30, 2020 the
remaining balance on the note was $610,974.
On March 13, 1997, the City entered into an agreement with subsequent amendments on
June 4, 1997, May 18, 2004, and May 12, 2009, with the Palm Desert Recreational Facilities
Corporation (Corporation) for the use of property at the City's Golf Resort (Desert Willow).
Payment is due when the Corporation's revenues exceed its expenses. At June 30, 2020, the
Corporation owed the City rent totaling $324,000, which will be recognized as revenue by the
City when the rent is paid by the Corporation.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01.The residents agreed to pay to the City the full
cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the
loan along with all accrued interest is due and payable at the earliest of September 2, 2036, or
any change in ownership of the property. As of June 30, 2020, $38,892 in interest has been
accrued. Recognition of the interest revenue has been reported as unavailable until it becomes
due.
Interest receivable in the amount of $38,074 on the advance from the General Fund to the
Energy Independence Special Revenue Fund, and $173,286 on investments purchased, and
$27,300 on advance to Desert Willow, and $8,358 on advances to the Successor Agency is
reported as unavailable revenue.
Other accounts receivable for reimbursement of court fees in the amount of $18,152,
outstanding lien in the amount of $30,271, traffic light reimbursements in the amount of
$85,315, county abandoned vehicle reimbursement in the amount of$18,837, police shared
cost with local school district in the amount of $49,392, and $375,405 of timeshare facilities
fees, are not available at year end.
Housinq Asset Fund
Uncollected interest on notes receivable of $31,277 due from the Palm Desert Development
Company has been reported as unavailable.
Interest in the amount of $36,038 on advances to the Successor Agency is reported as
unavailable revenue.
76
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 14: Unearned Revenues and Deferred Inflows of Resources (Continued)
Other Governmental Funds
Special Revenue Funds
Interest accrued on loans of $83,260 on loans receivable through the City's EIP Program is
reported as unavailable (see Note 3).
Capital Projects Funds
The Capital Projects Reserve Capital Projects Fund has $135,793 in interest on advances to
the Successor Agency is reported as unavailable.
The Capital Golf fund has$14,959 uncollected interest on advances due form the Desert Willow
Golf Course.
Debt Service Fund
Assessment receivables in the amount of $1,127,149 represent future assessments to be
received from property owners in Highlands Undergrounding Assessment Districts 04-1 to pay
for long-term obligations incurred in making capital improvements in the Assessment District.
Recognition of the revenue from the assessments has been deferred until it becomes available.
Once received, the monies will be used to make annual debt service payments.
Note 15: Other Post-Employment Benefits
a. Plan Description
In addition to the pension benefits described in Note 11, the City provides other
post-employment benefits (OPEB)through the California Employers' Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered
by the California Public Employees' Retirement System (CaIPERS).
All full-time or part-time employees who meet the eligibility requirements for this program
may continue their medical coverage through the CaIPERS Health Plan and receive
reimbursement from the City for a portion of the costs for the coverage. Separate financial
statements for the CERBT may be obtained by writing to CaIPERS at Lincoln Plaza North,
400 Q Street, Sacramento, California 95811, or by visiting the CaIPERS website at
www.ca I pers.ca.qov.
77
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 15: Other Post-Employment Benefits (Continued)
Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CaIPERS on
or after age 50 with at least 10 consecutive years of service with the City. Eligible
employees must be covered under the CaIPERS Health Plan at the time of retirement and
elect to participate in the stipend program within 30 days of retirement.
The City's contribution towards the coverage is based on years of service as follows:
Consecutiv�e Years of Service City's Contribution
With the City at Retirement Percentage
10 years of service 50%
11 years of service 55%
12 years of service 60%
13 years of service 65%
14 years of service 70%
15 or more years of service 75%
Emplovees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CaIPERS on
or after age 50 with at least 15 consecutive years of service with the City. Eligible
employees must be covered under the CaIPERS Health Plan at the time of retirement and
elect to participate in the stipend program within 30 days of retirement. The stipend is
discontinued when the retiree reaches Medicare eligibility age. The City's contribution
towards the coverage will be applied to the lowest cost plan and is based on age at
retirement and consecutive years of service with the City as outlined in the following table:
Consecutive Years of Service at Retirement
Age 15 16 17 18 19 20 21 22 23 24 25+
50 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
51 10% 15% 20% 25% 30% 35% 40% 45% 50% 50% 50%
52 20% 25% 30% 35% 40% 45% 50% 50% 50% 50% 50%
53 30% 35% 40% 45% 50% 50% 50% 50% 50% 50% 50%
54 40% 45% 50% 50% 50% 50% 50% 50% 50% 50% 50%
55+ 50% 50% 50% 50% 50% 50% 50% 50% 50°/a 50% 50°/a
Employees with at least 5 years of service, not meeting the eligibility requirements for the
stipend program, who retire simultaneously from the City and CaIPERS are eligible to
continue medical coverage through the CaIPERS Health Plan. The City is required to pay
the CaIPERS minimum employer contribution ($136 in 2019 and $139 in 2020) for these
employees.
78
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 15: Other Post-Employment Benefits (Continued)
Emplovees Hired On or After January 1, 2015
Employees are not eligible for either of the defined retiree health benefits plan but are
instead enrolled in the City's ICMA Retirement Health Savings Account. Employees have
a mandatory 1% contribution to the Retirement Health Savings Plan and the City matches
the 1°/o contribution. In addition, an employee can participate in the ICMA 401A
Governmental Money Purchase Plan with a maximum pre-tax dollar contribution of 10%,
with the City maximum match of 2%.
As of June 30, 2019, the date of the most recent actuarial valuation, the City's plan has
111 active employees.
Emplovees Covered - Plan membership, at June 30, 2019 valuation date, membership
consisted of the following:
Inactiv�e plan members or beneficiaries 116
Active plan members 111
b. City Contributions to the Plan
City contributions to the Plan occur as benefits are paid to retirees and/or to the
OPEB trust.
c. Net OPEB Asset
The City's Net OPEB Asset was measured as of June 30, 2019 and the Total OPEB
Liability used to calculate the Net OPEB Asset was determined by an actuarial valuation
as of June 30, 2019. Standard actuarial update procedures were used to project/discount
from valuation to measurement dates.
Actuarial assumptions. The total OPEB liability was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 2.75%
Salary Increase 3.25°/o per annum
Assumed Wage Inflation 3.25%per annum
Investment Rate of Return 6.73%per annum
Healthcare cost-trend rates Assumed to start at 8%and grade down by 0.5%each year to
5%in 2024
RetirementAge The City offers the same plans to its retirees as to its active
employees,with the general exception that upon reaching age 65
and becoming eligible for Medicare, the retiree mustjoin one of
the Medicare Supplement coverages offered under PEMHCA.
Mortality Mortality rates used were those published by CaIPERS,adjusted
to back out 20 years of Scale BB to central year 2008, then
projected using the MacLeod Watts Scale 2017 applied
generationally.
79
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 15: Other Post-Employment Benefits (Continued)
d. Discount Rate
GASB 75 requires a discount rate that reflects the following:
a) The long-term expected rate of return on OPEB plan investments—to the extent that
the OPEB plan's fiduciary net position (if any) is projected to be sufficient to make
projected benefit payments and assets are expected to be invested using a strategy to
achieve that return;
b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with
an average rating of AA/Aa or higher — to the extent that the conditions in
(a) are not met.
e. Changes in the Net OPEB Liability/(Asset)
The changes in the Net OPEB liability/(Asset)for the Plan are as follows:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2018 (Measurement Date) $ 18,678,184 $ 15,199,512 $ 3,478,672
Changes recognized for the measurement period:
Service Cost 369,299 - 369,299
Interest 1,256,431 - 1,256,431
Expected In�+estment Income - 1,078,382 (1,078,382)
Employer Contributions - 2,408,260 (2,408,260)
Administrative Expenses - (3,515) 3,515
Benefit Payments (756,759) (756,759) -
Assumption Changes 2,552,767 - 2,552,767
Plan Experience (4,066,457) - (4,066,457)
Investment Experience - 148,584 (148,584)
Net Changes in Fiscal Year2018-2019 (644,719) 2,874,952 (3,519,671)
Balance at June 30, 2019(Measurement Date) $ 18,033,465 $ 18,074,464 $ (40,999)
f. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in
the Discount Rate
The following presents the Total OPEB liability and Net OPEB liability/(asset), as well as
what the total OPEB liability and net OPEB liability/(asset)would be if they were calculated
using a discount rate that is 1-percentage point lower(5.20 percent)or 1-percentage-point
higher(7.20 percent)than the current discount rate:
Discount Rate- 1% Current Discount Rate Discount Rate+1%
(5.20%) (6.20%) (7.20%)
Total OPEB Liability $ 20,398,108 $ 18,033,465 $ 16,072,530
Net OPEB Liability/(Asset) $ 2,323,644 $ (40,999) $ (2,001,934)
80
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 15: Other Post-Employment Benefits (Continued)
g. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in
the Health Care Cost Trend Rates
The following presents the Total OPEB liability and net OPEB liability/(asset), as well as
what the Total OPEB liability and net OPEB liability/(asset)would be if they were calculated
using healthcare cost trend rates that are 1-percentage-point lower (6.50 percent
decreasing to 4.00 percent) or 1-percentage-point higher (8.50 percent decreasing to
7.00 percent)than the current healthcare cost trend rates:
1% Decrease Trend Rate 1% Increase
(6.50%decreasing (7.50% decreasing to (8.50% decreasing
to 4.00%1 5.00%1 to 6.00%1
Total OPEB Liability $ 15,885,425 $ 18,033,465 $ 20,652,499
NetOPEB Liability $ (2,189,039) $ (40,999) $ 2,578,035
h. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2020, the City recognized OPEB expense of$149,532.
As of fiscal year ended June 30, 2020, the City reported deferred outflows and inflows of
resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between e�ected and actual e�eriences $ 7,250 $ 3,038,891
Changes of assumptions 1,898,201 763
Difference between projected and actual return on
OPEB plan investments - 82,990
Contributions made subsequent to the
measurement date 1,280,453 -
Total $ 3,185,904 $ 3,122,644
The City will recognize the Contributions Made Subsequent to the Measurement Date in
the next fiscal year. In addition, future recognition of the deferred resources is shown
below:
Measurement Deferred
Period ended Outflows/(Inflows) of
June 30: Resources
2021 $ (401,331)
2022 (401,332)
2023 (340,428)
2024 (35,033)
2025 (5,317)
Thereafter (33,752)
Total $ (1,217,193)
81
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 16: Special Assessment Debt
Below is a summary of the changes in the special assessment bonds payable:
Balance at Payments and Balance at Due Within
July 1,2019 Additions Reductions June 30,2020 One Year
2003 Assessment Revenue Bonds $ 1,355,000 $ - $ 175,000 $ 1,180,000 $ 180,000
CFD 2005-1 Special Tax Bonds
Series 2006A 28,260,000 - 980,000 27,280,000 1,030,000
AD 2004-2 Limited Obligation
Improvement Bonds 21,265,000 - 700,000 20,565,000 735,000
Total $ 50,880,000 $ - $ 1,855,000 $ 49,025,000 $ 1,945,000
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special
Improvement Acts and the 1982 Mello-Roos Community Facilities Act(1982 Bonds). The City
has no liability to 1911 Act bondholders until assessments have been collected from the
property owner. Such liability is then recorded in the Agency Funds.Therefore,the 1911 Bonds
are not recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders, or the bondholders of bonds issued
under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the
tax rolls. However, the City may take certain actions to assume secondary liability for all or part
of 1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are
consummated.
Special assessment bonds payable, as described below, and are not recorded as
long-term liabilities, as these obligations do not constitute a debt or obligation of the City.
2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of
certain improvements of benefit to property within the City's Assessment District No. 94-2
(Sunterrace), Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility
Undergrounding Assessment District No. 01-01. These bonds were issued under the
1915 Improvement Bond Act to provide funds for public improvements in the respective
assessment districts.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 180,000 $ 58,069 $ 238,069
2022 100,000 50,719 150,719
2023 110,000 45,206 155,206
2024 115,000 39,300 154,300
2025 120,000 33,056 153,056
2026-2029 555,000 61,947 616,947
Total $ 1,180,000 $ 288,297 $ 1,468,297
82
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 16: Special Assessment Debt (Continued)
As of June 30, 2020, the principal amounts to be repaid by each assessment district to pay off
the loans from the Financing Authority are as follows:
Assessment District 94-3 $ 90,000
Assessment District 01-1 1,095,000
$ 1,185,000
Community Facilities District No. 2005-1
The bonds were issued in an original amount of $50,000,000 in May 2006, to construct and
acquire certain public facilities of benefit to the District, provide for the establishment of a
reserve account, provide capitalized interest, and pay the costs of issuance of the bonds. The
bonds are secured by and payable from a pledge of net taxes derived from special taxes to be
levied by the District on real properties within the boundaries of the District from the net
proceeds of any foreclosure actions brought following delinquency in the payment of the special
taxes, and from amounts held in certain funds under the indenture. Interest rates vary from
4.0% to 5.5% with interest payable semi-annually on March 1 and September 1, with principal
maturing annually on September 1.
In May 2007, the 2007 Bonds were issued in the amount of $17,915,000 pursuant to the
Bond Indenture in May 2006, as supplemented by a First supplemental Indenture in May 2007,
to provide construct and acquire certain public facilities of benefit to the District, provide
capitalized interest, and pay the costs of issuance of the 2007 Bonds. The bonds are secured
by and payable, on parity with the bonds issued in May 2006 for $50,000,000, from a pledge
of net taxes derived from special taxes to be levied by the District on real properties within the
boundaries of the District from the net proceeds of any foreclosure actions brought following
delinquency in the payment of the special taxes, and from amounts held in certain funds under
the indenture. On March 1, 2016, a combined total of$20,885,000 of the outstanding bonds
were called. Interest rates vary from 3.875% to 5.20% with interest payable semi-annually on
March 1 and September 1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 1,030,000 $ 1,435,375 $ 2,465,375
2022 1,080,000 1,382,625 2,462,625
2023 1,140,000 1,325,700 2,465,700
2024 1,195,000 1,264,406 2,459,406
2025 1,255,000 1,200,094 2,455,094
2026- 2030 7,390,000 4,900,491 12,290,491
2031 - 2035 9,600,000 2,623,769 12,223,769
2036-2037 4,590,000 255,750 4,845,750
Total $ 27,280,000 $ 14,388,210 $ 41,668,210
83
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 16: Special Assessment Debt (Continued)
Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds,
Series 2007
In March 2007, the City of Palm Desert issued $29,430,000 Limited Obligation Improvement
Bonds. The proceeds of the Bonds will be used to finance certain infrastructure improvements
within the City's Section 29 Assessment District (No. 2004-02). The debt service on the bonds
is to be paid by assessments secured on the property tax rolls of those properties benefiting
from the improvements. The bonds consist of Serial Bonds in the amount of$6,870,000 with
interest ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2.
Bond maturities begin September 2, 2009 and continue annually through 2020. Term bonds in
the amount of$2,525,000 carry an interest rate of 4.75%and mature September 2, 2022.Term
bonds in the amount of $5,110,000 carry an interest rate of 5.05% and mature
September 2, 2027. Term bonds in the amount of$14,925,000 carry an interest rate of 5.10%
and mature September 2, 2037.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 735,000 $ 1,020,979 $ 1,755,979
2022 765,000 985,354 1,750,354
2023 800,000 948,185 1,748,185
2024 845,000 907,849 1,752,849
2025 885,000 864,166 1,749,166
2026-2030 5,135,000 3,584,968 8,719,968
2031-2035 6,585,000 2,100,563 8,685,563
2036-2038 4,815,000 376,508 5,191,508
Total $ 20,565,000 $ 10,788,572 $ 31,353,572
Bond Reserve Requirements
At June 30, 2020, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
2003 Financing Authority Revenue Bonds $ 203,930 $ 242,585
CFD 2005-1 Special Tax Bonds 2,465,700 2,679,058
Assessment District 29 1,755,979 1,872,189
Note 17: Other Disclosures
The Palm Desert Recreational Facilities Corporation has a deficit of $899,697, which will be
eliminated by increasing revenues through banquet reservations and outings directly related to
the expansion of the outside dining terrace and the kitchen.
The Fiduciary Private-Purpose Trust Fund has a deficit of$166,809,345, which will be funded
through future property taxes collected by the County under the direction of the State. The
State of California is the responsible body for the elimination of this deficit.
84
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 18: Construction and Other Significant Commitments
Construction Commitments
Primary Government
Current Year Prior Year Remaining
Project Spent Spent Commitment
General Fund
Parks/Recreation $ - $ - $ 27,759
City Owned Buildings Improvments - 9,430 20
Landscape and Lighting Distict 81,582 - 7,689
San Pablo Street Improvements 43,258 38,927 18,015
Marriott/ Hotel EI Paseo CO-OP - - 57,450
COVID-19 Response 9,912 - 45,058
Promotional Advertising/ Rebranding 373,327 - 176,483
Drainage Improvements - - 100,000
Local NonProfit Agency Funding Agreement 150,000 150,000 150,000
City Fleet Maintenance 32,843 29,500 111,890
iHub 19,121 - 2,379
Equipment Ordered, Vehicles - - 30,484
Public Outreach 190,620 - 198,420
Misc nonConsturction 131,329 - 129,685
Measure A
Street I mprovements 1,036,553 - 687,224
San Pablo Street Improvements 2,210,509 19,082 1,423,304
Traffic Signal Improvements 483,009 - 61,791
Capital Properties
San Pablo Street Improvements 3,775,494 938,333 1,239,193
Pesidents Plaza Parking Lot Improvements 357,863 194,570 103,687
Alessandro West Improvement Project 11,720 21,818 1,178,834
Other Governmental Funds
City Owned Buildings Improvments 325,754 10,314 434,306
Landscape and Lighting Distict 21,574 - 7,191
Street Improvements 837,040 - 2,062,960
San Pablo Street Improvements 2,606,706 - 214,091
CVLINK 22,107 - 431,518
Recycle Projects 176,827 - 305,514
Traffic Signal Improvements 119,250 - 6,925
Alessandro West Improvement Project 810 17,936 454,690
Drainage Improvements - 273,818 36,100
EI Paseo Art E�ibit - 90,000 10,000
Local NonProfitAgency Funding Agreement 400,000 400,000 1,400,000
City Fleet 242,878 213,581 760,325
i Hub 239,393 185,663 566,377
Equipment Ordered, Vehicles - - 1,680,890
Misc nonConsturction 19,563 - 38,187
$ 13,919,042 $ 2,592,972 $ 14,158,439
85
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 18: Construction and Other Significant Commitments (Continued)
Fiduciary Funds
Current Year Prior Year Remaining
Project Spent Spent Commitment
Sewer Rent Payment $ 139,673 $ 232,788 $ 2,618,865
$ 139,673 $ 232,788 $ 2,618,865
Note 19: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies
Pursuant to AB X1 26 (adopted by the California Legislature in June 2011) and the
State Supreme Court's decision in Califomia Redeve%pment Association, et al. v. Ana
Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State were
dissolved as of February 1,2012. The City Council adopted Resolution No. 2011-76 on August
25, 2011, pursuant to Health and Safety Code ("HSC") Section 34172, electing for the City to
serve as the Successor Agency(`SARDA")to the former Palm Desert Redevelopment Agency
(the "Dissolved RDA"). SARDA is tasked with the wind-down of the Dissolved RDA's affairs.
Certain SARDA actions must first be approved by an oversight board, composed of
seven-members representing taxing entities.
HSC Section 34173(g)expressly provides that SARDA is a separate public entity from the City,
and the liabilities and assets of the Dissolved RDA shall not be transferred to the City.
Pursuant to HSC Section 34176, the City Council adopted Resolution No. 2012-07, on
February 9, 2012, electing to have the Palm Desert Housing Authority to serve as the Housing
Successor. The Housing Authority (as the Housing Successor) submitted to the State
Department of Finance ("DOF") a list of housing assets to be transferred by SARDA to the
Housing Successor. On August 31, 2012, the DOF issued a letter indicating that the DOF had
no objection to such housing asset list.
The housing assets(per the housing asset list), obligations,and activities of the Dissolved RDA
were transferred to the Housing Successor and are reported in the Housing Asset Fund
beginning in fiscal year 2011-12. However, outstanding bonds ("Housing Bonds"), secured by
a pledge of moneys which would have been deposited into the Dissolved RDA's low and
moderate income housing fund (known as the "Housing Set Aside"), remain as the SARDA's
enforceable obligations. See also "Stipulated JudgmenY' below. All other assets, obligations,
and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund
(private-purpose trust fund) in the financial statements of the City.
The County Auditor-Controller("CAC") has established a Redevelopment Property Tax Trust
Fund (the "RPTTF")for SARDA and is charged with depositing into the RPTTF the amount of
property taxes that would have been redevelopment property tax increment had the Dissolved
RDA not been dissolved.
86
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 19: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies (Continued)
SARDA is required to prepare an annual recognized obligation payment schedule
(the"ROPS")setting forth the amounts due for enforceable obligations from each July 1 through
the following June 30. The CAC only makes payments to the SARDA from the RPTTF based
on the ROPS amounts approved by the oversight board and the DOF.
During fiscal year 2012-13, SARDA was required to conduct due diligence reviews of the low
and moderate income housing fund and all other funds to compute the funds(cash)which were
not needed to be retained to pay existing enforceable obligations or otherwise unrestricted, and
therefore, must be remitted to the CAC. SARDA paid a total amount of $40,988,399 to the
CAC based on the due diligence reviews perthe DOF's determination.
The DOF issued a Finding of Completion on May 15, 2013 after SARDA remitted such
payments.
The Finding of Completion allows the placement of certain loans ("Advances") made by the
City to the Dissolved RDA (which were previously voided by operation of law upon the
Dissolved RDA's dissolution) on the ROPS. For each approved repayment 20% of the
repayment amount must be allocated to the Housing Asset Fund. The repayment of the
Advances, pursuant to the oversight board's and the DOF's approval, began during fiscal year
2019-20. At June 30, 2020, the balance of outstanding and unpaid Advances totaled
$10,575,463. In the financial statements $4,179,087 is reported in the General Fund and
$6,396,376 is reported in Other Governmental Funds. An offset of 20% has been reported as
due to other funds in the respective funds totaling $2,115,093,which is based on principal only.
See further discussion under Note 20.
Pursuant to HSC Section 34191.4(b), unpaid interest on the remaining principal amount of the
Advances shall be calculated at a simple rate of 3%. Based on the 3°/o simple rate, the unpaid
accrued interest on the Advances as of June 30, 2020 totaled $180,189.
The California State Controller was directed to review the propriety of any transfers of assets
between the Dissolved RDA and other public bodies that occurred after January 1, 2011. The
State Controller completed its review on March 14, 2013 and did not identify any unallowable
transfers of assets that occurred between the Dissolved RDA and the City or other public
agencies.
SARDA's use and disposition of all real properties held (Long Range Property Management
Plan ("LRPMP"),was approved by the DOF on June 2, 2014. The LRPMP allowed the SARDA
to transfer property used for government purposes with a cost basis of$6,390,263 to the City.
Stipulated Judqment
On May 15, 1991, the Riverside County Superior Court entered a final judgment incorporating
the terms of a Stipulation for Entry of Judgment ("Original Stipulation") in Case No. 51124 and
a Stipulation for Entry of Judgment pursuant to Settlement Agreement and Mutual Release
("Settlement Agreement")in Case No. 51124,among the Dissolved RDA,the City,the Western
Center on Law and Poverty, Inc., California Rural Legal Assistance, and others. On
June 18, 1997 and on September 20, 2002,the Riverside County Superior Court amended the
judgment, incorporating Stipulations Amending Stipulation for Entry of Judgment.
87
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 19: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies (Continued)
The judgment, as amended (the "JudgmenY'), generally required the Dissolved RDA to use
20% of its tax increment revenues, and additional tax increment revenues if necessary, to
develop, rehabilitate,or otherwise financially assist affordable housing units and to meet certain
housing needs of the City. Before dissolution, the Dissolved RDA used its Housing Set-Aside
to fulfill its obligations under the Judgment (including the payment of debt service on the
Housing Bonds issued to finance and refinance affordable housing projects that satisfied the
requirements of both the Judgment and the relevant Redevelopment Law provisions).
While the low and moderate income housing fund and the requirement to deposit the Housing
Set-Aside into such fund have been eliminated upon the Dissolved RDA's dissolution,SARDA
continues to recognize the Judgment as its enforceable obligation. On its ROPS, the SARDA
has included line items designated as "Stipulation Judgment Case No. 51124," listing the
amounts necessary to fulfill its obligations under the Judgment (after taking into account the
amounts already listed for the repayment of the Housing Bonds). While the DOF originally
approved such line items, the DOF changed its position beginning with
ROPS 14-15A (i.e., covering the period commencing July 1, 2014).
On August 14, 2014, SARDA filed an action, SARDA to the Palm Desert Redevelopment
Agency v. Michae/ Cohen, Sacramento Superior Court Case No. 34-2014-00167698
(the "Successor Agency LawsuiY'), seeking to compel the DOF to permit payment of the
affordable housing obligations mandated by the Judgment. Subsequently, in view of the fact
that there were similar cases pending in the California Court of Appeal (Third District), the
SARDA voluntarily dismissed its action without prejudice pending resolution of those other
cases. To date, none of the other cases has resulted in a decision that would compel the DOF
to permit payment of the obligations under the Judgment as an enforceable obligation.
Note 20: Successor Agency Disclosures
The assets and liabilities of the Dissolved RDA (except for those transferred to the Housing
Successor and reported in the Housing Asset Fund) have been transferred to the SARDA. The
SARDA is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to
these transactions are as follows:
Advances To/From the City of Palm Desert
The composition of advances as of June 30, 2020, was as follows:
Advances From Advances To Amount
General Fund Successor Agency $ 4,179,087
Other Governmental Funds Successor Agency 6,396,376
$ 10,575,463
88
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 20: Successor Agency Disclosures (Continued)
The advances from the General Fund and Other Governmental Funds were made to the
Dissolved RDA for capital improvements.The Dissolved RDA's low and moderate housing fund
also made an advance to the Dissolved RDA to cover the remittance that the Dissolved RDA
made to the CAC for deposit into the County Supplemental Educational Revenue
Augmentation Fund ("SERAF") in fiscal year 2009-10.
The repayment of the Advances repayable to City Funds for any fiscal year is subject to a cap
calculated pursuant to HSC Section 34191.4 and has a lower priority for repayment relative to
the repayment of the SERAF loans. Further, 20% of the repayment must be transferred to the
Housing Asset Fund (Housing Authority, as Housing Successor). During the course of fiscal
year 2019-20, the final repayment on the SERAF loan was completed and the repayment for
the City Advances has begun, pursuant to the DOF-approved 2019-20 ROPS.
Capital Assets
Balance at Balance at
July 1,2019 ,�ditions Deletions June 30,2020
Capital assets,not being depreciated:
Land $ 24,891,841 $ - $ - $ 24,891,841
Total capital assets, notbeing depreciated $ 24,891,841 $ - $ - $ 24,891,841
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2020, was as follows:
Balance Additions/ Repayments/ Balance Due Within
July 1,2019 Accretion Reductions June 30,2020 One Year
Project Area No.2
2003 TARBs,$15,745,000 $ 15,745,000 $ - $ - $ 15,745,000 $ -
2017 Tax Allocation Refunding Bonds
2017 A TARBs,$52,390,000 48,265,000 - 2,730,000 45,535,000 2,875,000
2017 B TARBs,$140,130,000 131,540,000 - 8,685,000 122,855,000 8,325,000
2017 H-A TARBs,$7,365,000 6,645,000 - 380,000 6,265,000 395,000
2017 H-B TARBs,$45,815,000 31,485,000 - 7,680,000 23,805,000 5,735,000
Subtotal 233,680,000 - 19,475,000 214,205,000 17,330,000
Add:Unamortized bond premium 7,292,598 - 643,183 6,649,415 -
Less:Unamortized bond discount (2,006,803) - (134,732) (1,872,071) -
Total $ 238,965,795 $ - $ 19,983,451 $ 218,982,344 $ 17,330,000
89
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 20: Successor Agency Disclosures (Continued)
The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the
Dissolved RDA) were issued by the Palm Desert Financing Authority, the proceeds of which
were loaned to the Dissolved RDA for financing or refinancing redevelopment projects.
Pursuant to the bond documents, the Authority's bonds were secured by the Dissolved RDA's
(and after dissolution, are secured by the Successor Agency's) repayment of the loans were
secured by tax increment (after the Dissolved RDA's dissolution, are secured by certain
moneys deposited in the RPTTF, see Notes 19) and other funds as provided in the bond
documents.
In January 2017, the Successor Agency issued four series of bonds: (i) the Tax Allocation
Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000
(the "2017A Bonds"), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the
aggregate principal amount of $140,130,000 (the "2017B Bonds"), (iii) the Tax Allocation
Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000
(the "2017H-A Bonds"); and (iv) the Taxable Tax Allocation Refunding Bonds, 2017 Series
H-B, in the aggregate principal amount of $45,815,000 (the "2017H-B Bonds"). As further
described below, the 2017 refunding refunded all of the outstanding tax allocation revenue
bonds, except for the Project Area No. 2 2003 Bonds.
None of these bonds or any interest thereon are a debt of the City, the State of California or
any of its political subdivisions (except for the Successor Agency), and none the City, the
State of California nor any of its political subdivisions (except for the Successor Agency) is
liable on the bonds, nor in any event shall the bonds and interest thereon be payable out of
any funds or properties other than those provided under the respective bond documents.
The remaining outstanding Project Area No. 2 2003 Bonds were insured by MBIA Insurance
Corporation("MBIA"). On February 18, 2009, MBIA announced the restructuring of its financial
guaranty insurance operations into two separately capitalized sister companies,with one entity
(MBIA Illinois) assuming the risk associated with its U.S. municipal exposures, and the other
(MBIA Corp) insuring the remainder of the portfolio. Effective March 19, 2009, MBIA Illinois
was renamed National Public Finance Guarantee Corporation ("NPFGC").
Some (but not all) of the maturities of each series of the 2017 Bonds are insured by
Build America Mutual Assurance Company.
2003 Series Tax Allocation Revenue Bonds (Proiect Area No. 2)
On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation
Revenue Bonds(Project Area No.2)2003 Series. The Palm Desert Financing Authority loaned
the bond proceeds to the Dissolved RDA to fund various redevelopment capital projects in
Project Area No. 2. Interest rates on the bonds vary from 4.5% to 5.0% per annum payable
semi-annually on February 1 and August 1, with principal maturing as follows:
$ 875,000 Serial Bonds August 1, 2023
910,000 Serial Bonds August 1, 2024
2,485,000 Term Bonds August 1, 2026
11,475,000 Term Bonds August 1, 2033
90
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 20: Successor Agency Disclosures (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds
(Project Area No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ - $ 769,006 $ 769,006
2022 - 769,006 769,006
2023 - 769,006 769,006
2024 875,000 749,319 1,624,319
2025 910,000 709,156 1,619,156
2026-2030 6,915,000 2,663,191 9,578,191
2031 -2034 7,045,000 726,625 7,771,625
$ 15,745,000 $ 7,155,309 $ 22,900,309
2017 Series A Tax Allocation Refundinq Bonds
On January 31, 2017, the Successor Agency issued the 2017A Bonds, in the principal amount
of$52,390,000. The proceeds from the 2017A Bonds were utilized to refund the Project Area
No. 1 2002A Bonds, Project Area No. 1 2003 Bond, Project Area No. 1 2004 Bonds,the Project
Area No. 2 2002A Bonds, and the Project Area No. 4 1998 Bonds and pay certain costs
associated with the issuance of the bonds.
Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1. As of June 30, 2020, the outstanding principal balance on the bonds$45,535,000.
The future debt service requirements on the 2017A Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 2,875,000 $ 2,204,875 $ 5,079,875
2022 3,060,000 2,056,500 5,116,500
2023 3,195,000 1,900,125 5,095,125
2024 715,000 1,802,375 2,517,375
2025 6,630,000 1,618,750 8,248,750
2026- 2030 25,295,000 3,711,625 29,006,625
2031 3,765,000 94,125 3,859,125
Total $ 45,535,000 $ 13,388,375 $ 58,923,375
91
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 20: Successor Agency Disclosures (Continued)
2017 Series B Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017B Bonds, in the principal amount
of$140,130,000. The proceeds from the 2017B Bonds were utilized refund the Project Area
No. 1 2006A Bonds,the Project Area No.2 2006A Bonds,the Project Area No.2 2006D Bonds,
the Project Area No. 3 2003 Bonds, the Project No. 3 2006A Bonds, the Project Area
No. 3 2006B Bonds, the Project Area No. 3 2006C Bonds, the Project Area No. 4 2001 Bonds,
the Project Area No.4 2006A Bonds, and the Project Area No.4 2006B Bonds and pay certain
costs associated with the issuance of the bonds.
Interest rates on the bonds vary from 1.25% to 4.25% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1. As of June 30, 2020, the outstanding principal balance on the bonds is
$122,855,000.
The future debt service requirements on the 2017B Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 8,325,000 $ 4,180,294 $ 12,505,294
2022 8,780,000 3,971,400 12,751,400
2023 9,405,000 3,726,844 13,131,844
2024 11,675,000 3,422,400 15,097,400
2025 5,585,000 3,160,009 8,745,009
2026-2030 29,590,000 12,770,522 42,360,522
2031 -2035 35,265,000 6,969,394 42,234,394
2036-2040 12,860,000 1,010,013 13,870,013
2041 -2042 1,370,000 58,863 1,428,863
Total $ 122,855,000 $ 39,269,739 $ 162,124,739
92
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 20: Successor Agency Disclosures (Continued)
2017 Series H-A Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017H-A Bonds, in the principal
amount of $7,365,000. The proceeds from the 2017H-A Bonds were used to refund the
2002 Housing Bonds and pay certain costs associated with the issuance of the bonds.
Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1.As of June 30, 2020, the outstanding principal balance on the bonds is$6,265,000.
The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds
are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 395,000 $ 279,644 $ 674,644
2022 415,000 259,394 674,394
2023 430,000 238,269 668,269
2024 455,000 216,144 671,144
2025 475,000 192,894 667,894
2026-2030 2,785,000 570,969 3,355,969
2031 -2032 1,310,000 42,497 1,352,497
Total $ 6,265,000 $ 1,799,811 $ 8,064,811
2017 Series H-B Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017H-B Bonds, in the principal
amount of $45,815,000. The proceeds from the 2017 H-B Bonds were used to refund the
2007 Housing Bond and pay certain costs associated with the issuance of the bonds.
Interest rates on the bonds vary from 1.25% to 3.00% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1.As of June 30,2020,the outstanding principal balance on the bonds is$23,805,000.
The future debt service requirements on the 2017H-B Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2021 $ 5,735,000 $ 569,606 $ 6,304,606
2022 5,860,000 428,175 6,288,175
2023 6,015,000 268,556 6,283,556
2024 6,195,000 92,925 6,287,925
Total $ 23,805,000 $ 1,359,262 $ 25,164,262
93
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
J U N E 30, 2020
Note 21: Tax Abatement
The City entered into a tax abatement agreement of transient occupancy tax revenue with a
local hotel under the authority of the City Council of the City of Palm Desert. Tax abated each
year is a calculation of the product of fifty percent (50°/o) of paid transient occupancy tax
revenues paid to the City by the hotel. For the fiscal year ended June 30,2020,the City abated
tax increment totaling $617,286 under this agreement.
Note 22: Subsequent Event
On March 27, 2020, in response to the economic fallout of the Coronavirus pandemic in the
United States, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, also
known as the CARES Act, which provided $2.2 trillion in economic stimulus funding through a
variety of channels. The State of California received a $500 million allocation to provide cities
which did not receive a direct federal allocation through the CARES Act. The City entered into
an agreement with the State of California in July 2020 to receive their allocation of the
CARES Act funding. The funding is to be received in six monthly installments of $109,038,
with the first installment received by the City in July 2020. The total amount of CARES Act
funding to be received by the City is$654,225.This funding was for the reimbursement of costs
incurred by the City since the start of the pandemic.
94
REQUIRED SUPPLEMENTARY INFORMATION
95
CITY OF PALM DESERT
MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020
TOTAL PENSION LIABILITY
Service Cost $ 2,156,598 $ 2,125,437 $ 2,076,964 $ 2,204,265 $ 2,196,462 $ 1,973,971
Interest 7,991,591 $223,320 $327,823 8,558,529 8,797,867 9,261,660
Difference between Expected and Actual Experience - (2,37$254) (4,259,317) (1,895,482) (594,882) 1,762,387
Changes in Assumptions - (2,091,348) - 7,367,723 (1,148,708) -
Benefit Payments,Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) (5,934,338) (6,383,377)
Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218 10,833,504 3,316,401 6,614,641
Total Pension Liability-Beginning 107,900,900 113,199,769 114,481,899 115,826,117 126,659,621 129,976,022
Total Pension Liability-Ending(a) $ 113,199,769 $ 114,481,899 $ 115,826,117 $126,659,621 $129,976,022 $136,590,663
PLAN FIDUCIARY NET POSITION
Contributions-Employer $ 3,320,450 $ 4,065,411 $ 4,257,322 $ 5,303,371 $ 5,407,412 $ 5,963,737
Contributions-Employee 995,504 878,171 87Q981 828,467 812,447 791,794
Net Investment Income 11,290,314 1,682,498 44$184 8,800,663 7,555,653 6,322,815
Benefit Payments,Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) (5,934,338) (6,383,377)
AdministrativeExpense - (87,279) (47,263) (115,573) (136,651) (67,893)
Net Plan to Plan Resource Movement - - - - (222) -
Other Miscellaneous Income/(Expense) (259,502) 222
Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397 7,444,799 6,627,298
Plan Fiduciary Net Position-Beginning 64,851,550 75,608,498 77,550,274 78,278,246 87,693,643 95,138,442
Plan Fiduciary Net Position-Ending(b) $ 75,608,498 $ 77,550,274 $ 75,278,246 $ 57,693,643 $ 95,138,442 $101,765,740
Plan Net Pension Liabilityl(Assets)-Ending(a)-(b) $ 37,591,271 $ 36,931,625 $ 37,547,871 $ 38,965,978 $ 34,837,580 $ 34,824,923
Plan Fiduciary Net Position as a Percentage of the Total
PensionLiability 66.79% 67.74% 67.58% 69.24% 73.20% 74.50%
Covered Payroll $ 11,110,759 $ 11,448,621 $ 11,342,713 $ 10,684,238 $ 10,751,687 $ 9,807,088
Plan Net Pension Liabilityl(Asset)as a Percentage of Covered
Payroll 338.33% 322.59% 331.03% 364.71% 324.02% 355.10%
(1)Historical information is required only for measuremen[for which GASB 68 is applicable.Fiscal Year 2015 was the first year of implementation,[herefore only six years are shown.
Notes to Schedule:
Benefit Chanqes:The figures above do not include any liability impact that may have resulted from plan changes which occurred after[he June 30,2015 valuation date.This applies for voluntary benefit
changes as well as any offers of Two Years Additional Service Credit(a.k.a.Golden Handshakes).
Chanqes of Assumptions:None in 2019.In 2018,demographic assumptions and inflation rate were changed in accordance[o[he CaIPERS Experience Study and Review of Actuarial Assumptions
December 2017.There were no changes in the discount rate.In 2017,the discount rate was reduced from 7.65 percent to 7.15 percent.In 2016,there were no changes.In 2015,amounts reported
reflect an adjustment of the discount rate from 7.5 percent(net of adminis[rative expense)to 7.65 percent(without a reduction for pension plan administra[ive expense.)In 2014,amounts reported were
based on the 7.5 percent discount rate.
See Notes to Required Supplementary Information 96
CITY OF PALM DESERT
MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017 2018 2019 2020
Actuarially Determined Contribution $ 3,393,171 $ 3,585,082 $ 3,550,127 $ 4,219,764 $ 4,225,204 $ 4,736,668
Contribution in Relation to the Actuarially Determined Conhibution (4,065,411) (4,257,322) (5,303,371) (5,396,908) (5,963,737) (4,521,813)
ContributionDeficiency(Excess) $ (672,240) $ (672,240) $ (1,753,244) $ (1,177,144) $ (1,738,533) $ 214,855
Covered Payroll $ 11,448,621 $ 11,342,713 $ 10,684,238 $ 10,751,687 $ 9,807,088 $ 11,392,639
Contributions as a Percentage of Covered Payroll 35.51% 37.53% 49.64% 5020% 60.81% 39.69%
(1)Historical information is required only for measurement for which GASB 68 is applicable.Fiscal Year 2015 was the first year of implementation,therefore only six years are shown.
Note to Schedule:
Valuation Date: June 30,2017
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method/period Level percentage of payroll,closed
Asset valuation method Market value
Inflation 2.625%
Salary increases Varies by entry age and service
Payroll growth 2.875%
Investment rate of return 7.25%net of pension investment and adminis[ra[ive expenses,including inflation.
Retirement age The probabilities of retirement are based on[he 2017 CaIPERS Experience Study for the period from 1997 to 2015.
Mortality The probabilities of retirement are based on the 2017 CaIPERS Experience Study for the period from 1997 to 2015.Pre-retirement
and post-retirement mortality rates include 20 years of projected mortality improvement using MP 2016 published by the Society of
Actuaries.
See Notes to Required Supplementary Information 97
CITY OF PALM DESERT
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY/(ASSET) AND RELATED
RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2018 2019 2020
Total OPEB Liability
Service cost $ 346,417 $ 357,675 $ 369,299
Interest on the total OPEB liability 1,144,106 1,199,747 1,256,431
Differences between expected and actual experience - - (4,066,457)
Changes in assumptions - - 2,552,767
Changes in benefit terms - - -
Benefit payments (653,187) (696,845) (756,759)
Net change in total OPEB liability 837,336 860,577 (644,719)
Total OPEB liability-beginning 16,980,271 17,817,607 18,678,184
Total OPEB liability-ending(a) $ 17,817,607 $ 18,678,184 $ 18,033,465
Plan Fiduciary Net Position
Contribution-emplayer $ 1,255,960 $ 1,381,501 $ 2,408,260
Net investment income 902,331 843,319 1,226,966
Benefit payments (653,187) (696,845) (756,759)
Administrative expense (6,541) (7,371) (3,515)
Other Expenses - (18,115) -
Net change in plan fiduciary net position 1,498,563 1,502,489 2,874,952
Plan fiduciary net position-beginning 12,198,460 13,697,023 15,199,512
Plan fiduciary net position-ending(b) 13,697,023 15,199,512 18,074,464
Net OPEB Liability/(Asset)-ending(a)-(b) $ 4,120,584 $ 3,478,672 $ (40,999)
Plan fiduciary net position as a percentage of the total OPEB liability 76.87% 81.38% 100.23%
Covered-Employee payroll $ 10,584,400 $ 10,749,431 $ 10,546,052
Net OPEB liability/(asset)as a percentage of covered-employee payroll 38.93% 32.36% -0.39%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.
Future years'information will be displayed up to 10 years as information becomes available.
See Notes to Required Supplementary Information 9$
CITY OF PALM DESERT
SCHEDULE OF PLAN CONTRIBUTIONS-OPEB
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2018 2019 2020
Actuarially Determined Contribution $ 520,620 $ 455,021 $ 348,915
Contribution in Relation to the Actuarially Determined Contributions (1,217,465) (2,211,778) (1,280,453)
Contribution Deficiency(Excess) $ (696,845) $ (1,756,757) $ (931,538)
Covered-Employee payroll $ 10,741,786 $ 10,546,052 $ 10,546,052
Contributions as a percentage of covered-employee payroll 11.33% 20.97% 12.14%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.
Future years'information will be displayed up to 10 years as information becomes available.
Notes to Schedule:
*Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2019 were from the July 1,2017 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Amortization Valuation Method/Period Level percent of payroll over a closed rolling 30-year period
Asset Valuation Method Market value of assets
Inflation 2.75%
Payroll Growth 3.25%per annum,in aggregate
Investment Rate of Return 6.73%per annum
Healthcare cost-trend rates 8%;Medical plan premiums and claims costs by age are stepping down by 0.5%each year to 5%.
Retirement Age Tier 1 employees - 2.50% @55 and Tier 2 employees - 2.00% @62 The probabilities of Retirement are
based on the 2014 CaIPERS Experience Study for the period of 1997 to 2011.
Mortality Mortality rates used were those published by CaIPERS,adjusted to back out 20 years of Scale BB to central
year 2008,then projected using the MacLeod Watts Scale 2017 applied generationally.
Change Since the Prior Valuation:
None.The beginning of ineasurement period liabilities were developed based on a roll back of the July 2017 valuation results.This methodology produces no liability
gains or losses between the beginning of the measurement period and the measurement date.
See Notes to Required Supplementary Information gg
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30,2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 93,043,070 $ 93,043,070 $ 93,043,070 $ -
Resources(Inflows):
Taxes
Property taxes 7,178,372 6,778,372 6,716,806 (61,566)
Property transfer tax 670,000 670,000 566,468 (103,532)
Property tax in lieu 4,150,000 4,150,000 4,384,778 234,778
Timeshare mitigation fee 1,450,000 1,450,000 1,467,905 17,905
Sales tax 19,055,000 18,455,000 18,445,806 (9,194)
Business license tax 1,275,000 1,075,000 1,038,137 (36,863)
Job valuation fees 12,000 12,000 21,846 9,846
Transient occupancy tax 16,320,800 12,020,800 11,681,583 (339,217)
Franchises 3,100,000 3,100,000 3,025,984 (74,016)
Penalties and interest on taxes 25,000 25,000 31,854 6,854
Total Taxes 53,236,172 47,736,172 47,381,167 (355,005)
Licenses and Permits
Building permits 520,000 920,000 923,377 3,377
Grading permits 35,000 35,000 29,799 (5,201)
Encroachment permits 25,000 25,000 54,447 29,447
Miscellaneous permits 1,500 1,500 1,155 (345)
Business regulatory permits 35,000 35,000 21,740 (13,260)
Golfcartpermits 1,000 1,000 1,610 610
Valet parking permits 500 500 625 125
Total Licenses and Permits 618,000 1,018,000 1,032,753 14,753
Intergovernmental
State mandate cost - - 18,151 18,151
Motor vehicle in-lieu fees 21,000 21,000 42,442 21,442
Monthly parking bail 15,000 15,000 8,715 (6,285)
Reimbursement RDA costs 800,000 800,000 711,665 (88,335)
Other reimbursements 575,000 735,000 664,105 (70,895)
Total Intergovernmental 1,411,000 1,571,000 1,445,078 (125,922)
Rental income 166,000 166,000 58,857 (107,143)
Charges for Services
Subdivision fees 250,000 250,000 189,760 (60,240)
Zoning fees 80,000 80,000 44,707 (35,293)
Plan check fees 470,000 470,000 468,180 (1,820)
Sale of maps and publications 3,000 3,000 6,287 3,287
Microfilm fees 5,000 5,000 5,746 746
Vehicleimpactfee 550,000 550,000 621,780 71,780
Other fees 125,500 125,500 147,593 22,093
Total Charges for Services 1,483,500 1,483,500 1,484,053 553
Investment Earnings
Interest income 850,000 3,850,000 3,992,957 142,957
Interest on notes receivable 200,000 200,000 188,857 (11,143)
Total investment Earnings 1,050,000 4,050,000 4,181,814 131,814
Fines and Forfeitures
Vehicle code fines 20,000 20,000 35,456 15,456
Municipal court fines 20,000 20,000 25,836 5,836
VICR fees 75,000 75,000 62,530 (12,470)
Total Fines and Forfeitures 115,000 115,000 123,822 8,822
Miscellaneous
Code compliance 13,000 13,000 101,642 88,642
Special investigation fee 1,000 1,000 - (1,000)
Certificate of compliance fee 1,000 1,000 300 (700)
Nuisance abatement tax 30,000 30,000 21,038 (8,962)
Abandoned vehicle abatement 20,000 20,000 73,270 53,270
Other revenue 81,000 1,521,000 1,594,068 73,068
Total Miscellaneous 146,000 1,586,000 1,790,318 204,318
Transfers in 2,448,050 2,448,050 2,472,976 24,926
Amounts Available for Appropriations 153,716,792 153,216,792 153,013,908 (202,884)
See Notes to Required Supplementary Information �QQ
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30,2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Charges to Appropriation(Outflow):
General Government
City Council 288,480 288,480 232,623 55,857
City Clerk 973,316 973,316 921,337 51,979
LegislativeAdvocacy 38,000 38,000 36,180 1,820
Elections 500 500 - 500
CityAttorney 278,512 290,512 290,138 374
Legal Special Services 294,000 916,815 523,943 392,872
City Manager 949,790 1,042,790 1,041,962 828
Finance 1,982,850 1,982,850 1,877,239 105,611
Independent Audit 90,000 90,000 51,991 38,009
Human Resources 969,960 979,460 799,719 179,741
General Services 4,272,433 4,213,288 3,929,467 283,821
Information Technology 1,070,057 1,155,742 1,145,735 10,007
Unemployment Insurance 10,000 10,000 - 10,000
Insurance 626,026 626,026 579,134 46,892
Retiree Funding - 1,101,402 1,101,402 -
Contributions to other Agencies 603,500 564,632 536,317 28,315
Community Promotions 1,264,500 1,027,500 947,370 80,130
Marketing 1,374,680 1,311,720 1,073,065 238,655
Visitors Information Center 208,430 150,430 133,225 17,205
Economic Development Center 980,100 1,147,600 991,014 156,586
Planning&Community Development 2,787,700 2,567,700 2,466,670 101,030
Total General Government 19,062,834 20,478,763 18,678,531 1,800,232
Public Safety
Police Services 22,276,228 20,696,228 20,688,567 7,661
Animal Regulation 245,000 245,000 237,448 7,552
Traffic Safety 368,600 368,600 291,764 76,836
Building and Safety 1,829,975 1,669,975 1,661,372 8,603
Community Safety 335,150 335,150 197,555 137,595
Total Public Safety 25,054,953 23,314,953 23,076,706 238,247
Parks,Recreation and Culture
Civic Center Park 1,289,150 1,202,546 1,153,592 48,954
Park Maintenance 1,048,200 1,057,391 930,522 126,869
Landscaping Service 1,918,700 1,763,955 1,745,230 18,725
Civic Center Park-Improvement 158,000 42,545 3,545 39,000
Total Parks, Recreation and Culture 4,414,050 4,066,437 3,832,889 233,548
Public Works
Administration 2,694,500 2,521,334 2,457,045 64,289
Street Maintenance 2,209,300 2,213,300 2,212,933 367
Curb&Gutter 25,000 85,000 - 85,000
Parking Lot 50,000 50,000 - 50,000
Corporate Yard 122,500 122,500 103,553 18,947
Auto Fleet/Equipment 250,000 250,000 208,140 41,860
Public Bldg-Opr/Maint. 735,900 735,900 660,235 75,665
Portola Community Center 151,400 151,400 124,066 27,334
Storm Water Permit 55,000 55,500 55,453 47
Total Public Works 6,293,600 6,184,934 5,821,425 363,509
Capital outlay - 90,000 89,327 673
Transfers out 5,802,451 8,638,049 8,636,479 1,570
Total Charges to Appropriations 60,627,888 62,773,136 60,135,357 2,637,779
Budgetary Fund Balance,June 30 $ 93,088,904 $ 90,443,656 $ 92,878,551 $ 2,434,895
See Notes to Required Supplementary Information 101
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $25,124,688 $ 25,124,688 $25,124,688 $ -
Resources (Inflows):
Taxes 2,842,000 2,842,000 2,869,576 27,576
Intergovernmental - - 542,263 542,263
Investment earnings 200,000 200,000 470,536 270,536
Amounts Available for Appropriations 28,166,688 28,166,688 29,007,063 840,375
Charges to Appropriation (Outflow):
Public works 3,375,000 24,148,450 8,159,491 15,988,959
Capital outlay 1,200,000 7,713,948 383,670 7,330,278
Total Charges to Appropriations 4,575,000 31,862,398 8,543,161 23,319,237
Budgetary Fund Balance, June 30 $23,591,688 $ (3,695,710) $20,463,902 $ 24,159,612
See Notes to Required Supplementary Information 102
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,501,481 $ 2,501,481 $ 2,501,481 $ -
Resources (Inflows):
Taxes 6,100,000 6,100,000 6,250,113 150,113
Assessments 2,200,432 2,200,432 2,314,419 113,987
I ntergovernmental 1,050,000 1,050,000 1,174,349 124,349
Charges for services 2,000,000 2,000,000 2,857,519 857,519
Investment earnings 15,000 15,000 48,066 33,066
Miscellaneous 15,500 15,500 144,648 129,148
Transfers in 3,000,000 3,000,000 3,000,000 -
Amounts Available for Appropriations 16,882,413 16,882,413 18,290,595 1,408,182
Charges to Appropriation (Outflow):
Public safety 14,510,500 14,510,500 13,871,741 638,759
Capital outlay 189,000 189,000 652 188,348
Total Charges to Appropriations 14,699,500 14,699,500 13,872,393 827,107
Budgetary Fund Balance, June 30 $2,182,913 $ 2,182,913 $ 4,418,202 $ 2,235,289
See Notes to Required Supplementary Information 103
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING ASSET FUND
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $46,858,206 $46,858,206 $46,858,206 $ -
Resources (Inflows):
Investment earnings 400,000 400,000 1,652,570 1,252,570
Miscellaneous - - 158,744 158,744
Amounts Available for Appropriations 47,258,206 47,258,206 48,669,520 1,411,314
Charges to Appropriation (Outflow):
Housing and redevelopment 475,300 305,500 103,238 202,262
Total Charges to Appropriations 475,300 305,500 103,238 202,262
Budgetary Fund Balance, June 30 $46,782,906 $ 46,952,706 $48,566,282 $ 1,613,576
See Notes to Required Supplementary Information 104
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 19,939,762 $ 19,939,762 $ 19,939,762 $ -
Resources (Inflows):
Rental income 6,754,584 6,754,584 7,012,791 258,207
Investment earnings 200,000 200,000 286,145 86,145
Miscellaneous - - 150,524 150,524
Amounts Available for Appropriations 26,894,346 26,894,346 27,389,222 494,876
Charges to Appropriation (Outflow):
Housing and redevelopment 11,124,905 11,124,905 6,693,092 4,431,813
Transfers out 351,876 351,876 268,510 83,366
Total Charges to Appropriations 11,476,781 11,476,781 6,961,602 4,515,179
Budgetary Fund Balance, June 30 $15,417,565 $ 15,417,565 $20,427,620 $ 5,010,055
See Notes to Required Supplementary Information 105
CITY OF PALM DESERT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2020
BUDGETS AND BUDGETARY ACCOUNTING
The City used the following procedures in establishing the budgetary data reported in the financial
statements:
1. Before the beginning of the fiscal year, the City Manager submits to the City Council a proposed
budget for the year commencing the following July 1.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is subsequently adopted through passage of a resolution.
4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level,
which is the legal level of control. For other funds, expenditures cannot exceed the total amount
budgeted for each fund, which is the legal level of control.
The City Manager is authorized to transfer appropriations (without council approval) between an
object of a General Fund Department and authority to adjust intra-and outer departmental budgeted
line items, as well as inter-fund transfers, provided such adjustments do not exceed the total
approved budget. The City Council approves all other changes. Annual appropriation amounts
lapse at year-end.
5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action.
6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America for all governmental funds except for certain special revenue funds
and capital projects funds, which adopt project length budgets and debt service funds that are not
budgeted as effective budgetary control is achieved through debt indenture provisions. The
following funds did not have legally adopted budgets during the current fiscal year:
Other Governmental Funds
Library
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment
Assessment 29
106
OTHER GOVERNMENTALFUNDS
COMBINING STATEMENTS
107
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30,2020
Special Capital TotalOther
Revenue Projects Debt Service Governmental
Funds Funds Fund Funds
ASSETS:
Pooled cash and investments $ 25,561,517 $ 23,073,998 $ 85,048 $ 48,720,563
Receivables:
Accounts 604,174 2,798 - 606,972
Assessments - - 1,127,149 1,127,149
Loans 2,283,863 - - 2,283,863
Interest 232,372 1,244,177 - 1,476,549
Allowance for interest on Successor Agency (149,112) (1,086,420) - (1,235,532)
Prepaid costs 38 15,667 - 15,705
Deposits - 20,000 - 20,000
Due from other governments 836,687 - 5,206 841,893
Due from other funds - 500,000 - 500,000
Inventories 4,043 - - 4,043
Restricted assets:
Cash and investments with fiscal agents - 2,098,831 - 2,098,831
Advances to Successor Agency 654,000 11,161,376 - 11,815,376
Allowance for Advances to Successor Agency (654,000) (4,765,000) - (5,419,000)
TOTAL ASSETS $ 29,373,582 $ 32,265,427 $ 1,217,403 $ 62,856,412
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable $ 1,473,769 $ 254,256 $ 412 $ 1,728,437
Accrued liabilities 5,329 - - 5,329
Unearned revenues 176,474 63,041 - 239,515
Deposits payable 18,720 - 24,526 43,246
Due to otherfunds 1,674,974 1,279,275 - 2,954,249
TOTAL LIABILITIES 3,349,266 1,596,572 24,938 4,970,776
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 83,260 150,752 1,127,149 1,361,161
Total Deferred Inflows of Resources 83,260 150,752 1,127,149 1,361,161
FUND BALANCES:
Nonspendable:
Prepaid costs 38 15,667 - 15,705
Restricted for:
Public safety 1,839,359 - - 1,839,359
Capital Projects - 2,107,145 - 2,107,145
Debt service - - 65,316 65,316
Street related purposes 4,930,057 - - 4,930,057
Low income housing 3,489,660 - - 3,489,660
Public facilities 4,597,997 - - 4,597,997
Special programs 6,684,060 1,261,476 - 7,945,536
Committed to:
Aquatic center 2,134,436 - - 2,134,436
Energy loan program 2,265,449 - - 2,265,449
Assigned to:
Capital projects - 10,789,151 - 10,789,151
Property acquisition - 420,387 - 420,387
Public facilities - 13,096,024 - 13,096,024
Special programs - 672,392 - 672,392
Street related purposes - 2,155,861 - 2,155,861
TOTAL FUND BALANCES 25,941,056 30,518,103 65,316 56,524,475
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 29,373,582 $ 32,265,427 $ 1,217,403 $ 62,856,412
108
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2020
Special Capital TotalOther
Revenue Projects Debt Service Governmental
Funds Funds Fund Funds
REVENUES:
Taxes $ 3,135,062 $ - $ - $ 3,135,062
Special assessments collected 1,051,966 - 115,539 1,167,505
Licenses and permits - 236,212 - 236,212
Intergovernmental revenues 3,192,142 48,094 - 3,240,236
Chargesforservices 931,005 - - 931,005
Investment earnings 774,273 2,182,178 1,959 2,958,410
Fines and forfeitures 3,979 - - 3,979
Miscellaneous 95,229 2,317,442 85,000 2,497,671
TOTAL REVENUES 9,183,656 4,783,926 202,498 14,170,080
EXPENDITURES:
Current:
General government 842,819 1,919,518 11,487 2,773,824
Public safety 66,499 7,006 - 73,505
Parks, recreation and culture 1,351,589 717,688 - 2,069,277
Publicworks 3,072,419 29,049 - 3,101,468
Housing and redevelopment 294,611 - - 294,611
Capital outlay 1,566,066 53,341 - 1,619,407
Debt service:
Principal retirement 93,000 - 132,000 225,000
Interest and fiscal charges 144,355 - 65,937 210,292
TOTAL EXPENDITURES 7,431,358 2,726,602 209,424 10,367,384
EXCESS OFREVENUES OVER
(UNDER) EXPENDITURES 1,752,298 2,057,324 (6,926) 3,802,696
OTHER FINANCING SOURCES(USES)
Transfers in 1,169,786 4,060,000 - 5,229,786
Transfers out (2,353,709) (119,267) - (2,472,976)
TOTAL OTHER FINANCING
SOURCES(USES) (1,183,923) 3,940,733 - 2,756,810
NET CHANGE IN FUND BALANCES 568,375 5,998,057 (6,926) 6,559,506
FUND BALANCES-BEGINNING OF YEAR 25,372,681 24,520,046 72,242 49,964,969
FUND BALANCES-END OF YEAR $ 25,941,056 $ 30,518,103 $ 65,316 $ 56,524,475
109
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TH IS PAG E I NTENTIONALLY LEFT BLAN K
110
OTHER GOVERNMENTAL FUNDS -SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safetv Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to the
General Fund is made at the end of the fiscal year by council action to be applied toward the eligible
expenditures permitted by law.
Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street-related purposes.
Housinq Mitigation Fee Fund - This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly for
projects and programs that benefit the low and moderate income households.
Communitv Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
Child Care Proqram Fund — This fund is used to collect funds from developers for the purpose of
providing child care programs.
Public Safetv Police Grants Fund - This fund is used to account for grants received from the
U.S. Department of Justice under the Local Law Enforcement Block Grant Program for the purpose of
purchasing equipment related to public safety.
New Construction Tax Fund - This fund is used to account for tax collected upon application to the City
for a building permit from every person/entity for the construction of any new building, addition or trailer
space in the city according to a fee schedule. Its use is restricted for the acquisition and development of
public facilities such as parks, playgrounds and public structures.
Planned Drainage Fund - This fund is used to account for off-site drainage fees based on an established
fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to
the issuance of a building permit in the case of construction or improvement of subdivided land.
Parks and Recreational Facilities Fund - This fund is used to account for fees collected for residential and
subdivision developments collected either at the time grading permits are paid or prior to the approval of
the final map. Its use is restricted for expenditures related to park development, maintenance and
equipment.
Traffic Siqnals Fund - This fund is used to account for fees collected for residential, commercial and
industrial developments either at the time grading permits are paid or prior to the approval of the final
map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals.
Fire Facilities Restoration Fund — This fund is used to collect funds from developers for the purpose of
construction, restoration and purchase of equipment for fire stations within the City.
Recvclinq Fund -This fund is used to account for resources resulting from lower landfill tipping fees which
have been reduced to zero in 2013, and State grant funds. Funds will be utilized for purposes of
promoting recycling and recycling related activities.
111
OTHER GOVERNMENTAL FUNDS -SPECIAL REVENUE
(CONTINUED)
Energv Independence Loan Fund —This fund is used to provide funding for the AB811 Energy Loans and
collect assessments from those AB811 loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the AB811 loans.
Air Quality Management Fund — This fund accounts for receipts from South Coast Air Quality
Management District, sixty percent of which is disbursed to the Coachella Valley Association of
Governments.
Aquatic Center Fund — This fund is used to account for revenues and expenditures for the City's aquatic
facility.
Cannabis Compliance Fund — This fund is used to account for revenues and expenditures for the City's
cannabis compliance activity.
EI Paseo Assessment District Fund — This fund is used to collect assessments on all business
establishments located within the boundaries set for the EI Paseo Parking and business improvement
area based on a fee schedule established for the various types of businesses. Proceeds from all charges
are used for the promotion of business activities in the area.
Various Landscape and Liqhtinq District Funds — These funds are used to account for expenditures and
receipts of property taxes and service fees levied to the property owners in the various landscaping and
lighting districts, which were formed to provide landscaping and street lighting maintenance. Individual
landscaping and lighting funds are set up for Districts No 1 through 17.
Affordable Housinq Fund — This fund is used to account for the management and operation of the
affordable housing portfolio.
112
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TH IS PAG E I NTENTIONALLY LEFT BLAN K
113
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2020
Community
Housing Development
Traffic Safety Gas Tax Mitigation Fee Block Grant
ASSETS:
Pooled cash and investments $ - $ 4,218,598 $ 3,494,035 $ -
Receivables:
Accounts - - - -
Loans - - - -
Interest - - - -
Allowance for interest on Successor Agency - - - -
Prepaid costs - - - -
Due from other governments 179 639,142 - 137,084
Inventories - - - -
Advancesto SuccessorAgency - - - -
Allowance for Advances to Successor Agency - - - -
TOTAL ASSETS $ 179 $ 4,857,740 $ 3,494,035 $ 137,084
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable $ - $ 1,008,924 $ 4,375 $ 84,997
Accrued liabilities - - - -
Unearned revenues - - - -
Deposits payable - - - -
Due to other funds - - - 6,974
TOTAL LIABILITIES - 1,008,924 4,375 91,971
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Public safety - - - -
Street related purposes 179 3,848,816 - -
Low income housing - - 3,489,660 -
Public facilities - - - -
Special programs - - - 45,113
Committed to:
Aquatic center - - - -
Energy loan program - - - -
TOTAL FUND BALANCES 179 3,848,816 3,489,660 45,113
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 179 $ 4,857,740 $ 3,494,035 $ 137,084
114
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2020 (CONTINUED)
New
Child Care Public Safety Construction Planned
Program Police Grants Tax Drainage
ASSETS:
Pooled cash and investments $ 1,479,284 $ 160,420 $ 1,537,963 $ 725,964
Receivables:
Accounts - - - -
Loans - - - -
Interest - - 149,112 -
Allowance for interest on Successor Agency - - (149,112) -
Prepaid costs - - - -
Due from other governments - 25,000 - -
Inventories - - - -
Advances to Successor Agency - - 654,000 -
Allowance for Advances to Successor Agency - - (654,000) -
TOTAL ASSETS $ 1,479,284 $ 185,420 $ 1,537,963 $ 725,964
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable $ - $ 9,075 $ 7,697 $ 61,954
Accrued liabilities - - - -
Unearned revenues - 163,046 - -
Deposits payable - - - -
Due to other funds - - - -
TOTAL LIABILITIES - 172,121 7,697 61,954
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Public safety - 13,299 - -
Street related purposes - - - 664,010
Low income housing - - - -
Publicfacilities 1,479,284 - 1,530,266 -
Special programs - - - -
Committed to:
Aquatic center - - - -
Energy loan program - - - -
TOTAL FUND BALANCES 1,479,284 13,299 1,530,266 664,010
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,479,284 $ 185,420 $ 1,537,963 $ 725,964
115
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2020
Parks and
Recreational Fire Facilities
Facilities Traffic Signals Restoration Recycling
ASSETS:
Pooled cash and investments $ 1,610,001 $ 423,015 $ 1,212,787 $ 2,713,426
Receivables:
Accounts - - - 55,233
Loans - - - -
Interest - - - -
Allowance for interest on Successor Agency - - - -
Prepaid costs - - - -
Due from other governments - - - -
Inventories - - - -
Advancesto SuccessorAgency - - - -
Allowance for Advances to Successor Agency - - - -
TOTAL ASSETS $ 1,610,001 $ 423,015 $ 1,212,787 $ 2,768,659
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable $ 21,554 $ 5,963 $ - $ 104,560
Accrued liabilities - - - -
Unearned revenues - - - 13,428
Deposits payable - - - -
Due to other funds - - - -
TOTAL LIABILITIES 21,554 5,963 - 117,988
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Publicsafety - - 1,212,787 -
Street related purposes - 417,052 - -
Low income housing - - - -
Public facilities 1,588,447 - - -
Special programs - - - 2,650,671
Committed to:
Aquatic center - - - -
Energy loan program - - - -
TOTAL FUND BALANCES 1,588,447 417,052 1,212,787 2,650,671
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,610,001 $ 423,015 $ 1,212,787 $ 2,768,659
116
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2020 (CONTINUED)
Energy
Independence Air Quality Aquatic Cannabis
Loan Management Center Compliance
ASSETS:
Pooled cash and investments $ 1,649,586 $ 33,950 $ 1,999,915 $ 278,299
Receivables:
Accounts - - 195,247 353,694
Loans 2,283,863 - - -
Interest 83,260 - - -
Allowance for interest on Successor Agency - - - -
Prepaid costs - - - -
Due from other governments - 16,783 - -
Inventories - - 4,043 -
Advancesto SuccessorAgency - - - -
Allowance for Advances to Successor Agency - - - -
TOTAL ASSETS $ 4,016,709 $ 50,733 $ 2,199,205 $ 631,993
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable $ - $ 25,708 $ 64,769 $ -
Accrued liabilities - - - -
Unearned revenues - - - -
Deposits payable - - - 18,720
Due to otherfunds 1,668,000 - - -
TOTAL LIABILITIES 1,668,000 25,708 64,769 18,720
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 83,260 - - -
Total Deferred Inflows of Resources 83,260 - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Public safety - - - 613,273
Street related purposes - - - -
Low income housing - - - -
Public facilities - - - -
Special programs - 25,025 - -
Committed to:
Aquatic center - - 2,134,436 -
Energy loan program 2,265,449 - - -
TOTAL FUND BALANCES 2,265,449 25,025 2,134,436 613,273
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 4,016,709 $ 50,733 $ 2,199,205 $ 631,993
117
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2020
Landscape
EI Paseo and Lighting Total Other
Assessment Districts Nos. Affordable Special Revenue
District 1 -17 Housing Fund Funds
ASSETS:
Pooled cash and investments $ 61,323 $ 3,957,622 $ 5,329 $ 25,561,517
Receivables:
Accounts - - - 604,174
Loans - - - 2,283,863
Interest - - - 232,372
Allowance for interest on Successor Agency - - - (149,112)
Prepaid costs 38 - - 38
Due from other governments - 18,499 - 836,687
Inventories - - - 4,043
Advances to Successor Agency - - - 654,000
Allowance for Advances to Successor Agency - - - (654,000)
TOTAL ASSETS $ 61,361 $ 3,976,121 $ 5,329 $ 29,373,582
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable $ 15,611 $ 58,582 $ - $ 1,473,769
Accrued liabilities - - 5,329 5,329
Unearned revenues - - - 176,474
Deposits payable - - - 18,720
Due to otherfunds - - - 1,674,974
TOTAL LIABILITIES 15,611 58,582 5,329 3,349,266
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - 83,260
Total Deferred Inflows of Resources - - - 83,260
FUND BALANCES:
Nonspendable:
Prepaid costs 38 - - 38
Restricted for:
Publicsafety - - - 1,839,359
Street related purposes - - - 4,930,057
Low income housing - - - 3,489,660
Public facilities - - - 4,597,997
Special programs 45,712 3,917,539 - 6,684,060
Committed to:
Aquatic center - - - 2,134,436
Energy loan program - - - 2,265,449
TOTAL FUND BALANCES 45,750 3,917,539 - 25,941,056
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 61,361 $ 3,976,121 $ 5,329 $ 29,373,582
118
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TH IS PAG E I NTENTIONALLY LEFT BLAN K
119
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2020
Housing Community
Mitigation Development
Traffic Safety Gas Tax Fee Block Grant
REVENUES:
Taxes $ - $ - $ 309,046 $ -
Special assessments collected - - - -
Intergovernmental revenues - 2,564,671 - 315,352
Charges for services - - - -
Investment earnings 34 77,681 98,957 596
Fines and forfeitures 3,979 - - -
Miscellaneous - - 90,000 5,200
TOTAL REVENUES 4,013 2,642,352 498,003 321,148
EXPENDITURES:
Current:
General government - - - 315,352
Public safety - - - -
Parks, recreation and culture - - - -
Public works - 2,219,988 - -
Housing and redevelopment - - 34,989 -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - 2,219,988 34,989 315,352
EXCESS OFREVENUES OVER
(UNDER)EXPENDITURES 4,013 422,364 463,014 5,796
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out (4,141) - - -
TOTAL OTHER FINANCING
SOURCES(USES) (4,141) - - -
NET CHANGE IN FUND BALANCES (128) 422,364 463,014 5,796
FUND BALANCES-BEGINNING OF YEAR 307 3,426,452 3,026,646 39,317
FUND BALANCES-END OF YEAR $ 179 $ 3,848,816 $ 3,489,660 $ 45,113
120
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2020 (CONTINUED)
Public New
Child Care Safety Police Construction Planned
Program Grants Tax Drainage
REVENUES:
Taxes $ 50,309 $ - $ 163,899 $ 18,020
Special assessments collected - - - -
Intergovernmental revenues - 66,372 12,083 -
Charges for services - - - -
Investment earnings 32,376 2,491 33,675 20,415
Fines and forfeitures - - - -
Miscellaneous - - - -
TOTAL REVENUES 82,685 68,863 209,657 38,435
EXPENDITURES:
Current:
General government - - - -
Public safety - 66,372 - -
Parks, recreation and culture - - - -
Public works - - - -
Housing and redevelopment - - - -
Capital outlay - - 22,107 992,081
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - 66,372 22,107 992,081
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 82,685 2,491 187,550 (953,646)
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - - -
NET CHANGE IN FUND BALANCES 82,685 2,491 187,550 (953,646)
FUND BALANCES-BEGINNING OF YEAR 1,396,599 10,808 1,342,716 1,617,656
FUND BALANCES-END OF YEAR $ 1,479,284 $ 13,299 $ 1,530,266 $ 664,010
121
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2020
Parks and Fire
Recreational Traffic Facilities
Facilities Signals Restoration Recycling
REVENUES:
Taxes $ 4,453 $ 29,677 $ 32,713 $ -
Special assessments collected - - - -
Intergovernmental revenues - - - 26,030
Charges for services - - - 429,491
Investment earnings 36,648 10,447 26,595 60,433
Fines and forfeitures - - - -
Miscellaneous - - - 29
TOTAL REVENUES 41,101 40,124 59,308 515,983
EXPENDITURES:
Current:
General government - - - 234,346
Public safety - - - -
Parks, recreation and culture - - - 27,799
Public works - - - 179,126
Housing and redevelopment - - - -
Capital outlay 115,108 119,250 - 48,975
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 115,108 119,250 - 490,246
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (74,007) (79,126) 59,308 25,737
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out - - - (680)
TOTAL OTHER FINANCING
SOURCES(USES) - - - (680)
NET CHANGE IN FUND BALANCES (74,007) (79,126) 59,308 25,057
FUND BALANCES-BEGINNING OF YEAR 1,662,454 496,178 1,153,479 2,625,614
FUND BALANCES-END OF YEAR $ 1,588,447 $ 417,052 $ 1,212,787 $ 2,650,671
122
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2020 (CONTINUED)
Energy
Independence Air Quality Aquatic Cannabis
Loan Management Center Compliance
REVENUES:
Taxes $ - $ - $ - $ 2,526,945
Special assessments collected - - - -
Intergovernmental revenues - 207,634 - -
Charges for services - - 501,514 -
Investment earnings 269,912 459 31,029 -
Fines and forfeitures - - - -
Miscellaneous - - - -
TOTAL REVENUES 269,912 208,093 532,543 2,526,945
EXPENDITURES:
Current:
General government 4,836 55,802 - -
Public safety - - - 127
Parks, recreation and culture - - 1,323,790 -
Public works - - - -
Housing and redevelopment - - - -
Capital outlay - 264,908 3,637 -
Debt service:
Principal retirement 93,000 - - -
Interest and fiscal charges 144,355 - - -
TOTAL EXPENDITURES 242,191 320,710 1,327,427 127
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 27,721 (112,617) (794,884) 2,526,818
OTHER FINANCING SOURCES(USES)
Transfers in - - 794,884 -
Transfers out - - - (2,340,000)
TOTAL OTHER FINANCING
SOURCES(USES) - - 794,884 (2,340,000)
NET CHANGE IN FUND BALANCES 27,721 (112,617) - 186,818
FUND BALANCES-BEGINNING OF YEAR 2,237,728 137,642 2,134,436 426,455
FUND BALANCES-END OF YEAR $ 2,265,449 $ 25,025 $ 2,134,436 $ 613,273
123
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2020
Landscape
EI Paseo and Lighting Total Other
Assessment Districts Nos. Affordable Special Revenue
District 1 -17 Housing Fund Funds
REVENUES:
Taxes $ - $ - $ - $ 3,135,062
Special assessments collected 206,236 845,730 - 1,051,966
Intergovernmental revenues - - - 3,192,142
Charges for services - - - 931,005
Investment earnings 1,815 70,710 - 774,273
Fines and forfeitures - - - 3,979
Miscellaneous - - - 95,229
TOTAL REVENUES 208,051 916,440 - 9,183,656
EXPENDITURES:
Current:
General government 232,483 - - 842,819
Public safety - - - 66,499
Parks, recreation and culture - - - 1,351,589
Public works - 673,305 - 3,072,419
Housing and redevelopment - - 259,622 294,611
Capital outlay - - - 1,566,066
Debt service:
Principal retirement - - - 93,000
Interest and fiscal charges - - - 144,355
TOTAL EXPENDITURES 232,483 673,305 259,622 7,431,358
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (24,432) 243,135 (259,622) 1,752,298
OTHER FINANCING SOURCES(USES)
Transfers in - 106,392 268,510 1,169,786
Transfers out - - (8,888) (2,353,709)
TOTAL OTHER FINANCING
SOURCES(USES) - 106,392 259,622 (1,183,923)
NET CHANGE IN FUND BALANCES (24,432) 349,527 - 568,375
FUND BALANCES-BEGINNING OF YEAR 70,182 3,568,012 - 25,372,681
FUND BALANCES-END OF YEAR $ 45,750 $ 3,917,539 $ - $ 25,941,056
124
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 307 $ 307 $ 307 $ -
Resources (Inflows):
Investment earnings 50 50 34 (16)
Fines and forfeitures 6,000 6,000 3,979 (2,021)
Amounts Available for Appropriations 6,357 6,357 4,320 (2,037)
Charges to Appropriation (Outflow):
Transfers out 6,050 6,050 4,141 1,909
Total Charges to Appropriations 6,050 6,050 4,141 1,909
Budgetary Fund Balance, June 30 $ 307 $ 307 $ 179 $ (128)
125
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GAS TAX
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $3,426,452 $ 3,426,452 $ 3,426,452 $ -
Resources (Inflows):
Intergovernmental 2,250,283 2,250,283 2,564,671 314,388
Investment earnings 24,000 24,000 77,681 53,681
Amounts Available for Appropriations 5,700,735 5,700,735 6,068,804 368,069
Charges to Appropriation (Outflow):
Publicworks 1,000,000 4,525,100 2,219,988 2,305,112
Total Charges to Appropriations 1,000,000 4,525,100 2,219,988 2,305,112
Budgetary Fund Balance, June 30 $4,700,735 $ 1,175,635 $ 3,848,816 $ 2,673,181
126
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING MITIGATION FEE
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $3,026,646 $ 3,026,646 $ 3,026,646 $ -
Resources (Inflows):
Taxes 183,700 183,700 309,046 125,346
Investment earnings 25,000 25,000 98,957 73,957
Miscellaneous - - 90,000 90,000
Amounts Available for Appropriations 3,235,346 3,235,346 3,524,649 289,303
Charges to Appropriation (Outflow):
Housing and redevelopment 310,000 310,000 34,989 275,011
Total Charges to Appropriations 310,000 310,000 34,989 275,011
Budgetary Fund Balance, June 30 $2,925,346 $ 2,925,346 $ 3,489,660 $ 564,314
127
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 39,317 $ 39,317 $ 39,317 $ -
Resources (Inflows):
Intergovernmental 350,000 350,000 315,352 (34,648)
Investment earnings - - 596 596
Miscellaneous - - 5,200 5,200
Amounts Available for Appropriations 389,317 389,317 360,465 (28,852)
Charges to Appropriation (Outflow):
General government 350,000 443,000 315,352 127,648
Total Charges to Appropriations 350,000 443,000 315,352 127,648
Budgetary Fund Balance, June 30 $ 39,317 $ (53,683) $ 45,113 $ 98,796
128
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CHILD CARE PROGRAM
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,396,599 $ 1,396,599 $ 1,396,599 $ -
Resources (Inflows):
Taxes 311,570 311,570 50,309 (261,261)
Investment earnings 15,000 15,000 32,376 17,376
Amounts Available for Appropriations 1,723,169 1,723,169 1,479,284 (243,885)
Charges to Appropriation (Outflow):
Capital outlay 255,000 1,530,000 - 1,530,000
Total Charges to Appropriations 255,000 1,530,000 - 1,530,000
Budgetary Fund Balance, June 30 $1,468,169 $ 193,169 $ 1,479,284 $ 1,286,115
129
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY POLICE GRANTS
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 10,808 $ 10,808 $ 10,808 $ -
Resources (Inflows):
Intergovernmental 100,000 100,000 66,372 (33,628)
Investment earnings 500 500 2,491 1,991
Amounts Available for Appropriations 111,308 111,308 79,671 (31,637)
Charges to Appropriation (Outflow):
Public safety 180,000 130,000 66,372 63,628
Total Charges to Appropriations 180,000 130,000 66,372 63,628
Budgetary Fund Balance, June 30 $ (68,692) $ (18,692) $ 13,299 $ 31,991
130
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
NEW CONSTRUCTION TAX
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,342,716 $ 1,342,716 $ 1,342,716 $ -
Resources (Inflows):
Taxes 471,000 471,000 163,899 (307,101)
Intergovernmental - - 12,083 12,083
Investment earnings 10,000 10,000 33,675 23,675
Amounts Available for Appropriations 1,823,716 1,823,716 1,552,373 (271,343)
Charges to Appropriation (Outflow):
Capital outlay 1,500,000 1,953,624 22,107 1,931,517
Total Charges to Appropriations 1,500,000 1,953,624 22,107 1,931,517
Budgetary Fund Balance, June 30 $ 323,716 $ (129,908) $ 1,530,266 $ 1,660,174
131
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PLANNED DRAINAGE
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,617,656 $ 1,617,656 $ 1,617,656 $ -
Resources (Inflows):
Taxes 25,000 25,000 18,020 (6,980)
Investment earnings 10,000 10,000 20,415 10,415
Amounts Available for Appropriations 1,652,656 1,652,656 1,656,091 3,435
Charges to Appropriation (Outflow):
Capital outlay - 1,577,656 992,081 585,575
Total Charges to Appropriations - 1,577,656 992,081 585,575
Budgetary Fund Balance, June 30 $1,652,656 $ 75,000 $ 664,010 $ 589,010
132
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATIONAL FACILITIES
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,662,454 $ 1,662,454 $ 1,662,454 $ -
Resources (Inflows):
Taxes 250,000 250,000 4,453 (245,547)
Investment earnings 13,000 13,000 36,648 23,648
Amounts Available for Appropriations 1,925,454 1,925,454 1,703,555 (221,899)
Charges to Appropriation (Outflow):
Capital outlay 100,000 255,060 115,108 139,952
Total Charges to Appropriations 100,000 255,060 115,108 139,952
Budgetary Fund Balance, June 30 $1,825,454 $ 1,670,394 $ 1,588,447 $ (81,947)
133
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SIGNALS
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 496,178 $ 496,178 $ 496,178 $ -
Resources (Inflows):
Taxes 20,000 20,000 29,677 9,677
Investment earnings 2,000 2,000 10,447 8,447
Amounts Available for Appropriations 518,178 518,178 536,302 18,124
Charges to Appropriation (Outflow):
Capital outlay - 206,305 119,250 87,055
Total Charges to Appropriations - 206,305 119,250 87,055
Budgetary Fund Balance, June 30 $ 518,178 $ 311,873 $ 417,052 $ 105,179
134
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITIES RESTORATION
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,153,479 $ 1,153,479 $ 1,153,479 $ -
Resources (Inflows):
Taxes 2,800 2,800 32,713 29,913
Investment earnings 12,000 12,000 26,595 14,595
Amounts Available for Appropriations 1,168,279 1,168,279 1,212,787 44,508
Charges to Appropriation (Outflow):
Capital outlay 76,300 1,151,471 - 1,151,471
Total Charges to Appropriations 76,300 1,151,471 - 1,151,471
Budgetary Fund Balance, June 30 $1,091,979 $ 16,808 $ 1,212,787 $ 1,195,979
135
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
RECYCLING
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,625,614 $ 2,625,614 $ 2,625,614 $ -
Resources (Inflows):
Intergovernmental - - 26,030 26,030
Charges for services 250,000 250,000 429,491 179,491
Investment earnings 25,000 25,000 60,433 35,433
Miscellaneous - - 29 29
Amounts Available for Appropriations 2,900,614 2,900,614 3,141,597 240,983
Charges to Appropriation (Outflow):
General government 275,000 636,015 234,346 401,669
Parks, recreation and culture 30,000 30,000 27,799 2,201
Public works 50,000 182,000 179,126 2,874
Capital outlay 185,000 185,000 48,975 136,025
Transfers out 52,000 52,000 680 51,320
Total Charges to Appropriations 592,000 1,085,015 490,926 594,089
Budgetary Fund Balance, June 30 $2,308,614 $ 1,815,599 $ 2,650,671 $ 835,072
136
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ENERGYINDEPENDENCELOAN
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,237,728 $ 2,237,728 $ 2,237,728 $ -
Resources (Inflows):
Investment earnings 252,000 252,000 269,912 17,912
Amounts Available for Appropriations 2,489,728 2,489,728 2,507,640 17,912
Charges to Appropriation (Outflow):
General government 15,000 15,000 4,836 10,164
Debt service:
Principal retirement 187,000 187,000 93,000 94,000
Interest and fiscal charges 146,825 146,825 144,355 2,470
Total Charges to Appropriations 348,825 348,825 242,191 106,634
Budgetary Fund Balance, June 30 $2,140,903 $ 2,140,903 $ 2,265,449 $ 124,546
137
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 137,642 $ 137,642 $ 137,642 $ -
Resources (Inflows):
Intergovernmental 204,000 204,000 207,634 3,634
Investment earnings 300 300 459 159
Amounts Available for Appropriations 341,942 341,942 345,735 3,793
Charges to Appropriation (Outflow):
General government 50,500 50,500 55,802 (5,302)
Capital outlay 210,000 272,225 264,908 7,317
Total Charges to Appropriations 260,500 322,725 320,710 2,015
Budgetary Fund Balance, June 30 $ 81,442 $ 19,217 $ 25,025 $ 5,808
138
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AQUATIC CENTER
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,134,436 $ 2,134,436 $ 2,134,436 $ -
Resources (Inflows):
Charges for services 795,550 795,550 501,514 (294,036)
Investment earnings 7,000 7,000 31,029 24,029
Transfers in 860,950 860,950 794,884 (66,066)
Amounts Available for Appropriations 3,797,936 3,797,936 3,461,863 (336,073)
Charges to Appropriation (Outflow):
Parks, recreation and culture 1,563,500 1,563,500 1,323,790 239,710
Capital outlay 100,000 105,178 3,637 101,541
Total Charges to Appropriations 1,663,500 1,668,678 1,327,427 341,251
Budgetary Fund Balance, June 30 $2,134,436 $ 2,129,258 $ 2,134,436 $ 5,178
139
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CANNABIS COMPLIANCE
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 426,455 $ 426,455 $ 426,455 $ -
Resources (Inflows):
Taxes 1,050,000 1,050,000 2,526,945 1,476,945
Investment earnings 1,000 1,000 - (1,000)
Amounts Available for Appropriations 1,477,455 1,477,455 2,953,400 1,475,945
Charges to Appropriation (Outflow):
Public safety 50,000 50,000 127 49,873
Transfers out 1,000,000 2,291,000 2,340,000 (49,000)
Total Charges to Appropriations 1,050,000 2,341,000 2,340,127 873
Budgetary Fund Balance, June 30 $ 427,455 $ (863,545) $ 613,273 $ 1,476,818
140
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
EL PASEO ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 70,182 $ 70,182 $ 70,182 $ -
Resources (Inflows):
Assessments 250,000 250,000 206,236 (43,764)
Investment earnings - - 1,815 1,815
Amounts Available for Appropriations 320,182 320,182 278,233 (41,949)
Charges to Appropriation (Outflow):
General government 250,000 290,000 232,483 57,517
Total Charges to Appropriations 250,000 290,000 232,483 57,517
Budgetary Fund Balance, June 30 $ 70,182 $ 30,182 $ 45,750 $ 15,568
141
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICTS NOS 1 -17
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $3,568,012 $ 3,568,012 $ 3,568,012 $ -
Resources (Inflows):
Assessments 868,940 868,940 845,730 (23,210)
Investment earnings 7,800 7,800 70,710 62,910
Transfers in 100,000 100,000 106,392 6,392
Amounts Available for Appropriations 4,544,752 4,544,752 4,590,844 46,092
Charges to Appropriation (Outflow):
Public works 968,839 973,759 673,305 300,454
Total Charges to Appropriations 968,839 973,759 673,305 300,454
Budgetary Fund Balance, June 30 $3,575,913 $ 3,570,993 $ 3,917,539 $ 346,546
142
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AFFORDABLE HOUSING FUND
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ - $ - $ - $ -
Resources (Inflows):
Transfers in 351,876 351,876 268,510 (83,366)
Amounts Available for Appropriations 351,876 351,876 268,510 (83,366)
Charges to Appropriation (Outflow):
Housing and redevelopment 300,876 300,876 259,622 41,254
Capital outlay 1,000 1,000 - 1,000
Transfers out 50,000 50,000 8,888 41,112
Total Charges to Appropriations 351,876 351,876 268,510 83,366
Budgetary Fund Balance, June 30 $ - $ - $ - $ -
143
�s +
TH IS PAG E I NTENTIONALLY LEFT BLAN K
144
OTHER GOVERNMENTAL FUNDS -CAPITAL PROJECTS
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities,
except for those financed by certain Special Revenue and Enterprise funds.
Capital Proiects Reserve - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the acquisition and development of public facilities, infrastructure
and equipment.
Drainaqe Facilities Fund -This fund is used to account for resources and expenditures for planned capital
improvement projects that are under the Master Drainage Plan.
Economic Development - This fund is used to account for fa�ade enhancement projects for Palm Desert
businesses utilizing funds from the sales of certain City-owned properties.
Parks and Recreational Facilities Fund - This fund is used to account for resources and expenditures for
capital improvement projects that are related to park development, maintenance and equipment.
Art in Public Places Fund - This fund is used to account for fees collected from residential, commercial
and public facilities development except for street and drainage projects. Its use is restricted for
acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the
administration of the program and community public art education programs.
Signalization Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the acquisition and maintenance of traffic signals.
Capital Golf Fund - This fund is used to offset the cost of capital improvements, equipment purchases,
perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of
Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are
collections from the IROC and Standard Vacation Ownership, Inc. time-share project.
Buildinqs Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the improvement and maintenance of public facilities and structures.
Library Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the purchase of library resources for the Multi-Agency Library.
Special Assessment District Funds - This fund is used to account for the construction of public
improvements from proceeds resulting from the creation of various assessment Districts.
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment
Assessment 29
145
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2020
Capital Parks and
Projects Drainage Economic Recreational
Reserve Facilities Development Facilities
ASSETS:
Pooled cash and investments $ 6,156,288 $ 2,059,741 $ 2,695,421 $ 46,665
Receivables:
Accounts - - 2,798 -
Interest 135,793 - - 1,086,420
Allowance for interest on Successor Agency - - - (1,086,420)
Prepaid costs - - 15,667 -
Deposits - - 20,000 -
Due from other funds - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Advances to Successor Agency 6,396,376 - - 4,765,000
Allowance for Advances to Successor Agency - - - (4,765,000)
TOTAL ASSETS $ 72,688,457 $ 2,059,741 $ 2,733,886 $ 46,665
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 810 $ 12,834 $ 2,326 $ 3,910
Unearned revenues 63,041 - - -
Due to other funds 1,279,275 - - -
TOTAL LIABILITIES 1,343,126 12,834 2,326 3,910
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 135,793 - - -
TOTAL DEFERRED INFLOWS OF RESOURCES 135,793 - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - 15,667 -
Restricted for:
Capital Projects - - - -
Special programs - - - -
Assigned to:
Capital projects 10,789,151 - - -
Property acquisition 420,387 - - -
Public facilities - - 2,715,893 42,755
Special programs - - - -
Street related purposes - 2,046,907 - -
TOTAL FUND BALANCES 11,209,538 2,046,907 2,731,560 42,755
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 72,688,457 $ 2,059,741 $ 2,733,886 $ 46,665
146
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2020 (CONTINUED)
Art in Public
Places Signalization Capital Golf Buildings
ASSETS:
Pooled cash and investments $ 1,265,772 $ 108,954 $ 7,150,056 $ 2,917,400
Receivables:
Accounts - - - -
Interest - - 14,959 -
Allowance for interest on Successor Agency - - - -
Prepaid costs - - - -
Deposits - - - -
Due from other funds - - 500,000 -
Restricted assets:
Cash and investments with fiscal agents - - - -
Advancesto SuccessorAgency - - - -
Allowance for Advances to Successor Agency - - - -
TOTAL ASSETS $ 1,265,772 $ 708,954 $ 7,665,075 $ 2,917,400
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 4,296 $ - $ 190,980 $ 39,100
Unearned revenues - - - -
Due to other funds - - - -
TOTAL LIABILITIES 4,296 - 190,980 39,100
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - 14,959 -
TOTAL DEFERRED INFLOWS OF RESOURCES - - 14,959 -
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Capital Projects - - - -
Special programs 1,261,476 - - -
Assigned to:
Capital projects - - - -
Property acquisition - - - -
Public facilities - - 7,459,076 2,878,300
Special programs - - - -
Street related purposes - 108,954 - -
TOTAL FUND BALANCES 1,261,476 108,954 7,459,076 2,878,300
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,265,772 $ 108,954 $ 7,665,075 $ 2,917,400
147
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2020
Assessment
District No.94- Silver Spur Highlands
Library 3 Merano Ranch Undergrounding
ASSETS:
Pooled cash and investments $ 672,392 $ - $ 618 $ 21
Receivables:
Accounts - - - -
Interest - 24 - -
Allowance for interest on Successor Agency - - - -
Prepaid costs - - - -
Deposits - - - -
Due from other funds - - - -
Restricted assets:
Cash and investments with fiscal agents - 188,721 - -
Advancesto SuccessorAgency - - - -
Allowance for Advances to Successor Agency - - - -
TOTAL ASSETS $ 672,392 $ 188,745 $ 618 $ 27
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable $ - $ - $ - $ -
Unearned revenues - - - -
Due to other funds - - - -
TOTAL LIABILITIES - - - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - -
TOTAL DEFERRED INFLOWS OF RESOURCES - - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Capital Projects - 188,745 618 21
Special programs - - - -
Assigned to:
Capital projects - - - -
Property acquisition - - - -
Public facilities - - - -
Special programs 672,392 - - -
Street related purposes - - - -
TOTAL FUND BALANCES 672,392 188,745 618 21
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 672,392 $ 188,745 $ 618 $ 27
148
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2020
CFD
University Total Other
Special Capital Projects
Assessment Assessment 29 Funds
ASSETS:
Pooled cash and investments $ - $ 670 $ 23,073,998
Receivables:
Accounts - - 2,798
Interest 6,981 - 1,244,177
Allowance for interest on Successor Agency - - (1,086,420)
Prepaid costs - - 15,667
Deposits - - 20,000
Due from other funds - - 500,000
Restricted assets:
Cash and investments with fiscal agents 1,910,110 - 2,098,831
Advances to SuccessorAgency - - 11,161,376
Allowance for Advances to Successor Agency - - (4,765,000)
TOTAL ASSETS $ 7,977,097 $ 670 $ 32,265,427
LIABILITIES,DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable $ - $ - $ 254,256
Unearned revenues - - 63,041
Due to other funds - - 1,279,275
TOTAL LIABILITIES - - 1,596,572
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - 150,752
TOTAL DEFERRED INFLOWS OF RESOURCES - - 750,752
FUND BALANCES:
Nonspendable:
Prepaid costs - - 15,667
Restricted for:
Capital Projects 1,917,091 670 2,107,145
Special programs - - 1,261,476
Assigned to:
Capital projects - - 10,789,151
Property acquisition - - 420,387
Public facilities - - 13,096,024
Special programs - - 672,392
Street related purposes - - 2,155,861
TOTAL FUND BALANCES 1,917,091 670 30,518,103
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 7,977,097 $ 670 $ 32,265,427
149
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2020
Capital Parks and
Projects Drainage Economic Recreational
Reserve Facilities Development Facilities
REVENUES:
Licenses and permits $ - $ - $ - $ -
Intergovernmental revenues 48,094 - - -
Investment earnings 1,786,337 45,644 55,453 1,100
Miscellaneous - - - -
TOTAL REVENUES 1,834,431 45,644 55,453 1,100
EXPENDITURES:
Current:
General government 400,000 - 1,380,521 -
Public safety - - - -
Parks,recreation and culture 197,554 - - 18,675
Public works - 29,049 - -
Capital outlay 810 - - -
TOTAL EXPENDITURES 598,364 29,049 1,380,521 78,675
EXCESS OFREVENUES OVER
(UNDER)EXPENDITURES 1,236,067 16,595 (1,325,068) (17,575)
OTHER FINANCING SOURCES(USES)
Transfers in 660,000 - 3,400,000 -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) 660,000 - 3,400,000 -
NET CHANGE IN FUND BALANCES 1,896,067 16,595 2,074,932 (17,575)
FUND BALANCES-BEGINNING OF YEAR 9,313,471 2,030,312 656,628 60,330
FUND BALANCES-END OF YEAR $ 11,209,538 $ 2,046,907 $ 2,731,560 $ 42,755
150
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2020 (CONTINUED)
Art in Public
Places Signalization Capital Golf Buildings
REVENUES:
Licenses and permits $ 236,212 $ - $ - $ -
Intergovernmental revenues - - - -
Investment earnings 29,908 2,407 146,479 65,369
Miscellaneous - - 2,317,442 -
TOTAL REVENUES 266,120 2,407 2,463,921 65,369
EXPENDITURES:
Current:
General government - - - 138,997
Public safety - - - 7,006
Parks,recreation and culture 107,672 - 367,697 26,090
Public works - - - -
Capital outlay - - - 52,531
TOTAL EXPENDITURES 707,672 - 367,697 224,624
EXCESS OFREVENUES OVER
(UNDER)EXPENDITURES 158,448 2,407 2,096,224 (159,255)
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out (119,267) - - -
TOTAL OTHER FINANCING
SOURCES(USES) (719,267) - - -
NET CHANGE IN FUND BALANCES 39,181 2,407 2,096,224 (159,255)
FUND BALANCES-BEGINNING OF YEAR 1,222,295 106,547 5,362,852 3,037,555
FUND BALANCES-END OF YEAR $ 1,261,476 $ 108,954 $ 7,459,076 $ 2,878,300
151
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2020
Assessment
District No.94- Silver Spur Highlands
Library 3 Merano Ranch Undergrounding
REVENUES:
Licenses and permits $ - $ - $ - $ -
Intergovernmental revenues - - - -
Investment earnings 1,816 2,473 - -
Miscellaneous - - - -
TOTAL REVENUES 1,816 2,473 - -
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Parks,recreation and culture - - - -
Public works - - - -
Capital outlay - - - -
TOTAL EXPENDITURES - - - -
EXCESS OFREVENUES OVER
(UNDER)EXPENDITURES 1,816 2,473 - -
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - - -
NET CHANGE IN FUND BALANCES 1,816 2,473 - -
FUND BALANCES-BEGINNING OF YEAR 670,576 186,272 618 21
FUND BALANCES-END OF YEAR $ 672,392 $ 188,745 $ 618 $ 21
152
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2020
CFD
University
Special Total Other
Assessment Assessment Capital Projects
District 29 Fund
REVENUES:
Licenses and permits $ - $ - $ 236,212
Intergovernmental revenues - - 48,094
Investment earnings 45,192 - 2,182,178
Miscellaneous - - 2,317,442
TOTAL REVENUES 45,192 - 4,783,926
EXPENDITURES:
Current:
General government - - 1,919,518
Public safety - - 7,006
Parks,recreation and culture - - 717,688
Public works - - 29,049
Capital outlay - - 53,341
TOTAL EXPENDITURES - - 2,726,602
EXCESS OFREVENUES OVER
(UNDER)EXPENDITURES 45,192 - 2,057,324
OTHER FINANCING SOURCES(USES)
Transfers in - - 4,060,000
Transfers out - - (119,267)
TOTAL OTHER FINANCING
SOURCES(USES) - - 3,940,733
NET CHANGE IN FUND BALANCES 45,192 - 5,998,057
FUND BALANCES-BEGINNING OF YEAR 1,871,899 670 24,520,046
FUND BALANCES-END OF YEAR $ 1,917,091 $ 670 $ 30,518,103
153
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROPERTIES
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $69,070,739 $ 69,070,739 $69,070,739 $ -
Resources (Inflows):
Investment earnings 650,100 650,100 713,618 63,518
Amounts Available for Appropriations 69,720,839 69,720,839 69,784,357 63,518
Charges to Appropriation (Outflow):
General government 750,000 750,000 16,157 733,843
Parks and recreation - 20,000,000 - 20,000,000
Publicworks 600,000 19,093,888 4,912,422 14,181,466
Capital outlay - 8,341,006 3,024,912 5,316,094
Total Charges to Appropriations 1,350,000 48,184,894 7,953,491 40,231,403
Budgetary Fund Balance,June 30 $ 68,370,839 $ 21,535,945 $61,830,866 $ 40,294,921
154
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS RESERVE
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 9,313,471 $ 9,313,471 $ 9,313,471 $ -
Resources (Inflows):
Intergovernmental 60,000 60,000 48,094 (11,906)
Investment earnings 20,000 20,000 1,786,337 1,766,337
Transfers in 250,000 250,000 660,000 410,000
Amounts Available for Appropriations 9,643,471 9,643,471 11,807,902 2,164,431
Charges to Appropriation (Outflow):
General government 400,000 400,000 400,000 -
Public safety - 68,152 - 68,152
Parks, recreation and culture 210,000 726,462 197,554 528,908
Public works 100,000 179,000 - 179,000
Capital outlay 100,000 547,999 810 547,189
Total Charges to Appropriations 810,000 1,921,613 598,364 1,323,249
Budgetary Fund Balance,June 30 $ 8,833,471 $ 7,721,858 $ 11,209,538 $ 3,487,680
155
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
DRAINAGE FACILITIES
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,030,312 $ 2,030,312 $ 2,030,312 $ -
Resources (Inflows):
Investment earnings 15,000 15,000 45,644 30,644
Amounts Available for Appropriations 2,045,312 2,045,312 2,075,956 30,644
Charges to Appropriation (Outflow):
Publicworks - 411,974 29,049 382,925
Total Charges to Appropriations - 411,974 29,049 382,925
Budgetary Fund Balance,June 30 $2,045,312 $ 1,633,338 $ 2,046,907 $ 413,569
156
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ECONOMIC DEVELOPMENT
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 656,628 $ 656,628 $ 656,628 $ -
Resources (Inflows):
Investment earnings 3,000 3,000 55,453 52,453
Transfers in - 3,400,000 3,400,000 -
Amounts Available for Appropriations 659,628 4,059,628 4,112,081 52,453
Charges to Appropriation (Outflow):
General government 151,500 3,812,444 1,380,521 2,431,923
Total Charges to Appropriations 151,500 3,812,444 1,380,521 2,431,923
Budgetary Fund Balance,June 30 $ 508,128 $ 247,184 $ 2,731,560 $ 2,484,376
157
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATIONAL FACILITIES
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 60,330 $ 60,330 $ 60,330 $ -
Resources (Inflows):
Investment earnings 1,000 1,000 1,100 100
Amounts Available for Appropriations 61,330 61,330 61,430 100
Charges to Appropriation (Outflow):
Parks, recreation and culture 20,000 20,000 18,675 1,325
Total Charges to Appropriations 20,000 20,000 18,675 1,325
Budgetary Fund Balance,June 30 $ 41,330 $ 41,330 $ 42,755 $ 1,425
158
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 1,222,295 $ 1,222,295 $ 1,222,295 $ -
Resources (Inflows):
Licenses and permits 730,500 730,500 236,212 (494,288)
Investment earnings 15,000 15,000 29,908 14,908
Amounts Available for Appropriations 1,967,795 1,967,795 1,488,415 (479,380)
Charges to Appropriation (Outflow):
Parks, recreation and culture 147,850 165,534 107,672 57,862
Transfers out 200,000 200,000 119,267 80,733
Total Charges to Appropriations 347,850 365,534 226,939 138,595
Budgetary Fund Balance,June 30 $ 1,619,945 $ 1,602,261 $ 1,261,476 $ (340,785)
159
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
SIGNALIZATION
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 106,547 $ 106,547 $ 106,547 $ -
Resources (Inflows):
Investment earnings 700 700 2,407 1,707
Amounts Available for Appropriations 107,247 107,247 108,954 1,707
Charges to Appropriation (Outflow):
Public works - - - -
Total Charges to Appropriations - - - -
Budgetary Fund Balance,June 30 $ 107,247 $ 107,247 $ 108,954 $ 1,707
160
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL GOLF
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 5,362,852 $ 5,362,852 $ 5,362,852 $ -
Resources (Inflows):
Investment earnings 86,000 86,000 146,479 60,479
Miscellaneous 2,312,640 2,312,640 2,317,442 4,802
Amounts Available for Appropriations 7,761,492 7,761,492 7,826,773 65,281
Charges to Appropriation (Outflow):
Parks, recreation and culture 1,003,961 1,011,705 367,697 644,008
Transfers out 840,000 - - -
Total Charges to Appropriations 1,843,961 1,011,705 367,697 644,008
Budgetary Fund Balance,June 30 $ 5,917,531 $ 6,749,787 $ 7,459,076 $ 709,289
161
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
BUILDINGS
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 3,037,555 $ 3,037,555 $ 3,037,555 $ -
Resources (Inflows):
Investment earnings 20,000 20,000 65,369 45,369
Amounts Available for Appropriations 3,057,555 3,057,555 3,102,924 45,369
Charges to Appropriation (Outflow):
General government 259,500 1,031,916 138,997 892,919
Public safety - 146,507 7,006 139,501
Parks, recreation and culture - 175,478 26,090 149,388
Capital outlay - - 52,531 (52,531)
Total Charges to Appropriations 259,500 1,353,901 224,624 1,129,277
Budgetary Fund Balance,June 30 $2,798,055 $ 1,703,654 $ 2,878,300 $ 1,174,646
162
OTHER GOVERNMENTAL FUNDS—DEBT SERVICE FUND
City Hiqhlands Underaroundinq Fund — This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
163
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
JUNE 30,2020
City Highland Total Other Debt
Undergrounding Service Fund
ASSETS:
Pooled cash and investments $ 85,048 $ 85,048
Receivables:
Assessments 1,127,149 1,127,149
Due from other governments 5,206 5,206
TOTAL ASSETS $ 1,217,403 $ 1,217,403
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 412 $ 412
Deposits payable 24,526 24,526
TOTAL LIABILITIES 24,938 24,938
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 1,127,149 1,127,149
TOTAL DEFERRED INFLOWS OF RESOURCES 1,127,149 1,127,149
FUND BALANCES:
Restricted for:
Debt service 65,316 65,316
TOTAL FUND BALANCES 65,316 65,316
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,217,403 $ 1,217,403
164
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER DEBT SERVICE FUND
YEAR ENDED JUNE 30,2020
City TotalOther
Highlands Debt Service
Undergrounding Fund
REVENUES:
Special assessments collected $ 115,539 $ 115,539
Investment earnings 1,959 1,959
Miscellaneous 85,000 85,000
TOTAL REVENUES 202,498 202,498
EXPENDITURES:
Current:
General government 11,487 11,487
Debt service:
Principal retirement 132,000 132,000
Interest and fiscal charges 65,937 65,937
TOTAL EXPENDITURES 209,424 209,424
EXCESS OFREVENUES OVER
(UNDER) EXPENDITURES (6,926) (6,926)
FUND BALANCES-BEGINNING OF YEAR 72,242 72,242
FUND BALANCES-END OF YEAR $ 65,316 $ 65,316
165
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CITY HIGHLAND UNDERGROUNDING
YEAR ENDED JUNE 30, 2020
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 72,242 $ 72,242 $ 72,242 $ -
Resources(Inflows):
Assessments 123,265 123,265 115,539 (7,726)
Investment earnings 1,000 1,000 1,959 959
Miscellaneous - - 85,000 85,000
Amounts Available for Appropriations 196,507 196,507 274,740 78,233
Charges to Appropriation (Outflow):
General government 10,000 10,000 11,487 (1,487)
Debt service:
Principal retirement 47,000 134,000 132,000 2,000
Interest and fiscal charges 65,938 65,938 65,937 1
Total Charges to Appropriations 122,938 209,938 209,424 514
Budgetary Fund Balance,June 30 $ 73,569 $ (13,431) $ 65,316 $ 78,747
166
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for services provided to other departments or agencies of the
City on a cost reimbursement basis.
Equipment Replacement — This fund is used to account for financial transactions related to replacement
of City-owned vehicles and equipment.
Compensation Benefits Fund—This fund is used to account for funding of compensated absences.
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CITY OF PALM DESERT
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2020
Equipment Compensation
Replacement Benefits Total
ASSETS:
CURRENT ASSETS:
Cash and investments $ 7,760,311 $ 2,679,818 $ 10,440,129
Prepaid costs 53,688 - 53,688
TOTAL CURRENT ASSETS 7,813,999 2,679,818 10,493,817
CAPITAL ASSETS:
Depreciable,net 2,512,686 - 2,512,686
CAPITAL ASSETS, NET 2,512,686 - 2,512,686
TOTAL ASSETS 10,326,685 2,679,818 13,006,503
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable 66,977 - 66,977
Compensated absences - 300,000 300,000
TOTAL CURRENT LIABILITIES 66,977 300,000 366,977
NONCURRENT LIABILITIES:
Compensated absences - 2,275,071 2,275,071
TOTAL NONCURRENT LIABILITIES: - 2,275,071 2,275,071
TOTAL LIABILITIES 66,977 2,575,071 2,642,048
NET POSITION:
Invested in capital assets 2,512,686 - 2,512,686
Unrestricted 7,747,022 104,747 7,851,769
TOTAL NET POSITION $ 10,259,708 $ 104,747 $ 10,364,455
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CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2020
Equipment Compensation
Replacement Benefits Total
OPERATING EXPENSES:
General and administrative $ - $ 155,069 $ 155,069
Maintenance and operations 656,428 - 656,428
Depreciation and amortization 575,203 - 575,203
TOTAL OPERATING EXPENSES 1,231,631 155,069 1,386,700
OPERATING LOSS (1,231,631) (155,069) (1,386,700)
NONOPERATING REVENUES:
Interestrevenue 166,997 58,869 225,866
Gain on disposal of capital assets 80,490 - 80,490
TOTAL NONOPERATING REVENUES 247,487 58,869 306,356
LOSS BEFORE TRANSFERS (984,144) (96,200) (1,080,344)
TRANSFERS IN 575,203 100,000 675,203
CHANGE IN NET POSITION (408,941) 3,800 (405,141)
NET POSITION-BEGINNING OF YEAR 10,668,649 100,947 10,769,596
NET POSITION-END OF YEAR $ 10,259,708 $ 104,747 $ 10,364,455
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CITY OF PALM DESERT
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2020
Equipment Compensation
Replacement Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers $ (607,361) $ - $ (607,361)
Cash paid to employees for services - (208,213) (208,213)
NET CASH USED
BY OPERATING ACTIVITIES (607,361) (208,213) (815,574)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds 575,203 100,000 675,203
NET CASH PROVIDED BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES 575,203 100,000 675,203
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (1,152,638) - (1,152,638)
Proceeds from sales of assets 92,332 - 92,332
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (1,060,306) - (1,060,306)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 166,997 58,869 225,866
NET CASH PROVIDED BY INVESTING
ACTIVITIES 166,997 58,869 225,866
NET DECREASE
CASH AND CASH EQUIVALENTS (925,467) (49,344) (974,811)
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 8,685,778 2,729,162 11,414,940
CASH AND CASH EQUIVALENTS- $ 7,760,311 $ 2,679,818 $ 10,440,129
END OF YEAR
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES:
Operating income(loss) $ (1,231,631) $ (155,069) $ (1,386,700)
Adjustments to reconcile operating loss to net
cash provided(used)by operating activities:
Depreciation and amortization 575,203 - 575,203
(Increase)decrease in due from other governments 25,000 - 25,000
(Increase)decrease in prepaid expense (28,570) - (28,570)
Increase(decrease)in accounts payable 52,637 - 52,637
Increase(decrease)in compensated absences - (53,144) (53,144)
Total Adjustments 624,270 (53,144) 571,126
NET CASH USED
BY OPERATING ACTIVITIES $ (607,361) $ (208,213) $ (815,574)
170
AGENCYFUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Aqencv Fund - This fund is used to account for deposits placed with the City by developers, individuals
and groups to obtain future services. Deposits are reduced by disbursements and/or refunds to the
depositors when the cost of services is determined.
Treasurers 1911 Bond Act- This fund is used to account for the assets held on behalf of the assessment
district's property owners until they are remitted to the bondholders.
Retiree Service Stipend Fund - This fund is used to account for assets held to pay for the retiree service
stipend.
Special Assessment Funds - These funds are used to account for the collection of special assessments
and the future payment of debt service related to bonds issued.
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CITY OF PALM DESERT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALLAGENCYFUNDS
JUNE 30,2020
Retiree Special
Treasurers Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
Assets:
Pooled cash and investments $ 2,309,073 $ 268,804 $ 2,906,637 $ 8,023,192 $ 13,507,706
Receivables:
Assessments - - - 50,031,646 50,031,646
Accrued interest - - - 10,000 10,000
Due from other governments 33,704 - - 22,175 55,879
Restricted assets:
Cash and investments with fiscal agents - - - 4,829,551 4,829,551
Total Assets $ 2,342,777 $ 268,804 $ 2,906,637 $ 62,916,564 $ 68,434,782
Liabilities:
Deposits payable $ 2,342,777 $ 268,804 $ 2,906,637 $ 62,916,564 $ 68,434,782
Total Liabilities $ 2,342,777 $ 268,804 $ 2,906,637 $ 62,916,564 $ 68,434,782
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CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2020
Balance Balance
July 1,2019 Additions Deductions June 30,2020
AGENCY
ASSETS:
Pooled cash and investments $ 1,933,099 $ 4,980,687 $ 4,604,713 $ 2,309,073
Due from other governments 37,963 53,317 57,576 33,704
TOTAL ASSETS $ 1,971,062 $ 5,034,004 $ 4,662,289 $ 2,342,777
LIABILITIES:
Deposits $ 1,971,062 $ 5,034,004 $ 4,662,289 $ 2,342,777
TOTAL LIABILITIES $ 1,971,062 $ 5,034,004 $ 4,662,289 $ 2,342,777
TREASURERS 1911 BOND ACT
ASSETS:
Pooled cash and investments $ 268,804 $ - $ - $ 268,804
TOTAL ASSETS $ 268,804 $ - $ - $ 268,804
LIABILITIES:
Deposits payable $ 268,804 $ - $ - $ 268,804
TOTAL LIABILITIES $ 268,804 $ - $ - $ 268,804
RETIREE SERVICES STIPEND FUND
ASSETS:
Pooled cash and investments $ 2,853,798 $ 1,170,735 $ 1,117,896 $ 2,906,637
TOTAL ASSETS $ 2,853,798 $ 1,170,735 $ 1,117,896 $ 2,906,637
LIABILITIES:
Deposits payable $ 2,853,798 $ 1,170,735 $ 1,117,896 $ 2,906,637
TOTAL LIABILITIES $ 2,853,798 $ 1,170,735 $ 1,117,896 $ 2,906,637
174
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2020
Balance Balance
July 1,2019 Additions Deductions June 30,2020
SPECIAL ASSESSMENT FUNDS
ASSETS:
Pooled cash and investments $ 7,917,890 $ 4,951,110 $ 4,845,808 $ 8,023,192
Receivables:
Assessments 52,002,794 - 1,971,148 50,031,646
Accrued interest 20,615 9,999 20,614 10,000
Due from other governments 52,417 22,175 52,417 22,175
Restricted assets:
Cash and investments with fiscal agents 4,722,788 119,502 12,739 4,829,551
TOTAL ASSETS $ 64,716,504 $ 5,102,786 $ 6,902,726 $ 62,916,564
LIABILITIES:
Deposits payable $ 64,716,504 $ 5,102,786 $ 6,902,726 $ 62,916,564
TOTAL LIABILITIES $ 64,716,504 $ 5,102,786 $ 6,902,726 $ 62,916,564
TOTAL-ALL AGENCY FUNDS
ASSETS:
Pooled cash and investments $ 12,973,591 $ 11,102,532 $ 10,568,417 $ 13,507,706
Receivables:
Assessments 52,002,794 - 1,971,148 50,031,646
Accrued interest 20,615 9,999 20,614 10,000
Due from other governments 90,380 75,492 109,993 55,879
Restricted assets:
Cash and investments with fiscal agents 4,722,788 119,502 12,739 4,829,551
TOTAL ASSETS $ 69,810,168 $ 11,307,525 $ 12,682,911 $ 68,434,782
LIABILITIES:
Deposits payable $ 69,810,168 $ 11,307,525 $ 12,682,911 $ 68,434,782
TOTAL LIABILITIES $ 69,810,168 $ 11,307,525 $ 12,682,911 $ 68,434,782
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DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2020
This part of the City of Palm Desert's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the city's overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
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.
Operating Information
These schedules contain seroice and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City provides
and the activities it preforms.
Sources: Unless otherwise noted,the information in theses schedules is derived from the comprehensive
annual financial reports for the relevant year, The City implemented GASB Statement 34 in 2001;
schedules presenting government-wide information include information beginning in that year.
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City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2020 2019 2018 2017 2016
Net Investment in capital assets 424,163,964 429,729,549 438,184,070 449,037,170 459,644,720
Restricted 196,858,726 200,536,233 197,349,364 197,824,604 193,298,431
Unrestricted 86,017,220 90,057,306 83,054,707 87,091,894 78,812,066
Total Governmental Activities Net Position 707,039,910 720,323,088 718,588,141 733,953,668 731,755,217 (3)
Business-Type Activities - - -
Net Investment in capital assets 68,394,059 69,070,734 69,111,797 69,829,772 70,202,487
Restricted - - - - -
Unrestricted 6,672,261 6,590,251 5,609,843 4,829,456 4,479,575
Total Business-type Activities Net Position 75,066,320 75,660,985 74,721,640 74,659,228 74,682,062
Primary Government
Net Investment in capital assets 492,558,023 498,800,283 507,295,867 518,866,942 529,847,207
Restricted 196,858,726 200,536,233 197,349,364 197,824,604 193,298,431
Unrestricted 92,689,481 96,647,557 88,664,550 91,921,350 83,291,641
Total Prima Government Net Position 782,106,230 795,984,073 793,309,781 808,612,896 806,437,279
Governmental Activities 2015 2014 2013 2012 2011
Net Investment in capital assets 473,722,694 466,246,732 465,756,172 475,457,375 302,757,128
Restricted 135,900,520 140,460,575 132,741,798 119,736,419 147,648,424
Unrestricted 71,530,456 105,537,785 103,603,715 107,622,257 107,314,002
Total Governmental Activities Net Position 681,153,670 (z) 712,245,092 702,101,685 702,816,051 f�) 557,719,554
Business-Type Activities
Net Investment in capital assets 71,129,743 72,009,184 72,892,200 73,375,634 74,043,419
Restricted - - - - -
Unrestricted 4,302,958 3,920,382 3,682,061 3,901,816 4,068,623
Total Business-type Activities Net Position 75,432,701 75,929,566 76,574,261 77,277,450 78,112,042
Primary Government
Net Investment in capital assets 544,852,437 538,255,916 538,648,372 548,833,009 376,800,547
Restricted 135,900,520 140,460,575 132,741,798 119,736,419 147,648,424
Unrestricted 75,833,414 109,458,167 107,285,776 111,524,073 111,382,625
Total Primary Government Net Position 756,586,371 788,174,658 778,675,946 780,093,501 635,831,596
(1)On February I,2012 the State of California dissolved the Ciry of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City RedevelopmentAgencies,which in Xurn cveated the Successor Agency to the RedevelopmentAgency of the City ofPalm Desert.
(2)The implementation of GASB Statement No.68 and StatementNo. 71 resulted in a prior year restatement decrease of$37.73 million in the
governmental activities netpositons.
(3)The City's Capital Properries Capital Project Fund received�65,566,963 and the Housing Asset Fund received�6,571,706for a combined total of
$72,138,669 of capital bond proceeds transfevred from the Successor Agency.
179
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses 2020 2019 2018 2017 2016
Governmental Activities:
General govemment 24,297,715 23,252,576 1$467,097 15,70$054 14,836,881
Public safety 37,286,860 37,195,732 36,543,050 34,943,220 34,009,984
Housing&Redevelopment (1) 8,802,290 9,067,858 9,605,756 10,954,630 8,162,859
Parks,recreation and culture 7,651,094 8,284,914 8,240,115 9,850,200 9,223,126
Publicworks 28,270,798 14,836,332 18,358,907 14,892,145 47,044,197
Payments to other agencies - - - - -
Interest on long term debt 203,183 231,228 259,250 271,603 289,000
Total Governmental activities Expenses 106,511,940 92,868,640 91,474,175 86,619,852 113,566,047
Business-Type Activities:
Desert Willow Golf Course $603,243 8,70Q514 $763,220 8,243,515 8,165,183
Office Complex-Parkview 856,196 874,753 93Q815 893,125 1,005,918
TotalBusiness-TypeActivities 9,459,439 9,575,267 9,694,035 9,136,640 9,171,101
Total primary government expenses 115,971,379 102,443,907 101,168,210 95,756,492 122,737,148
Program Revenues
Governmental Activities
Charges for services
General government 2,343,116 2,645,724 2,388,260 2,095,648 2,185,123
Housing&Redevelopment $446,585 8,180,354 7,551,760 6,861,450 7,029,595
Public safety 16,429,810 14,503,741 10,801,436 10,603,708 10,606,464
Parks,recreation and culture 532,543 829,557 821,824 793,527 772,801
Publicworks 2,386,635 2,762,045 2,685,831 2,327,521 2,186,153
Operating grants&contributions 10,416,281 10,426,397 8,555,881 7,931,900 9,496,520
Capital grants&contributions 3,661,487 4,016,193 2,442,621 7,71Q355 10,839,715
Total Governmental Activities Program Revenues 44,216,457 43,364,011 35,247,613 38,324,109 43,116,371
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,099,985 8,743,654 8,432,273 7,497,664 7,24Q866
Office Complex-Parkview 1,311,140 1,298,066 1,250,456 1,284,462 1,280,230
Capital grants&contributions 183,556 504,217 167,670 605,186 111,942
Total Business-type activities program revenue 8,594,681 10,545,937 9,850,399 9,387,312 8,633,038
Total Primary Government program revenue 52,811,138 53,909,948 45,098,012 47,711,421 51,749,409
Net(Expense)/Revenue
Governmental activities (62,295,483) (49,504,629) (56,226,562) (48,295,743) (70,449,676)
Business-type activities (864,758) 970,670 156,364 250,672 (538,063)
Total Primary Government Net Expense (63,160,241) (48,533,959) (56,070,198) (48,045,071) (70,987,739)
General Revenues&Other Changes in Net Position
Governmental Activities:
Taxes:(Combined/Net Pass-through) 45,21Q477 53,894,917 50,150,650 47,628,454 44,747,151
Investment Earnings 2,366,204 3,170,693 1,901,536 1,041,232 2,074,934
Contributions not restricted for specific purpose - - - - -
Gain(loss)on sales of capital assets 80,490 7,452 17,274 2,145 24,292
M iscellaneous 1,355,134 1,396,514 1,573,106 1,522,363 1,828,677
Specialltem (5) - (7,530,000) - - -
Transfers In/(Out) - 300,000 300,000 300,000 237,500
Gain on Transfer to Successor Agency/Extraordinary Gain(4) - - - - 72,138,669
Total Governmental activities Net Revenues 49,012,305 51,239,576 53,942,566 50,494,194 121,051,223
Business-Type Activities:
Investment Earnings 159,115 181,310 74,873 26,494 24,924
Gain(loss)on sales of capital assets - 87,365 131,175 - -
Miscellaneous 110,978 - - - -
Transfers Out - (300,000) (300,000) (300,000) (237,500)
Total Business-type activities 270,093 (31,325) (93,952) (273,506) (212,576)
Total primary government 49,282,398 51,208,251 53,848,614 50,220,688 120,838,647
Change in Net Position
GovernmentalActivities: (13,283,178) 1,734,947 (2,253,996) 2,198,451 50,601,547
Business-Type Activities: (594,665) 939,345 62,412 (22,834) (750,639)
Total prima overnment 13,877,843 2,674,292 2,221,584 2,175,617 49,850,908
(IJCi(y•has daanged the naaaner�in which it r�e��orts 2DA crpenditur�es.RDA and Housing cependitw�es are being reported under"Housing&RedevelopmenY'.
(Z)Required payment made to the State ofCalifornia.For FY2010 was$25,526,215 and FY2011 was$5,255,397.
(3)On Fehruary 1,2012 the S[a[e of California dissolved the City ofPalm Deser[Redevelopment Agency as part of the Slatewide dissolution of all
City Redevelopment Agencies,which in turn created[he SuccersorAgency to the Reclevelopment Agency of the Ci[y ofPalm Desert.
(4J The City's Capital Prroperties Capital Project Funcl received$65,566,963 and the Housingtlsset Fund received$6,57l,706fo�-a combined total of
$72,138,669 of capital boncl proceeds[ransferred from[he SucczssorAgency.
(5)City estahlished an allowanceJor advances owed by the Successor tlgency.
180
Cily oCPalm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting�
Expenses 2015 2014 2013 2012 �s� 2011 �z�
Governmental Activities:
General government 16,337,393 19,194,343 16,375,295 17,387,080 17,182,987
Public safety 32,077,635 29,339,106 28,614,153 28,037,453 26,601,668
Housing&Redevelopment (1) 11,666,724 7,852,611 6,944,033 10,519,663 15,976,383
Parks,recreation and culture 8,59$242 8,327,402 8,752,623 6,033,019 7,337,403
Publicworks 19,144,213 21,123,197 16,316,237 17,407,751 16,984,334
Payments to other agencies - - - 16,994,265 39,418,936
Interest on long term debt 294,258 237,053 253,381 1Q971,707 18,989,167
Total Governmental Activities Expenses 88,178,465 86,073,712 77,255,722 107,350,938 142,490,878
Business-Type Activities:
Desert Willow Golf Course 8,433,267 8,452,001 8,655,754 8,471,567 7,946,063
Office Complex-Parkview 934,296 922,341 984,811 1,031,178 861,786
Total Business-Type Activities 9,367,563 9,374,342 9,640,565 9,502,745 8,807,849
Total primary government expenses 97,486,028 95,448,054 86,896,287 116,853,683 151,298,727
Program Revenues
Governmental Activities
Charges for services
General government 2,088,393 2,152,280 1,833,823 1,805,442 1,921,573
Housing&Redevelopment 7,971,265 6,851,603 5,308,858 5,034,002 4,935,422
Public safety 9,987,891 10,239,886 11,147,297 9,041,801 9,825,352
Parks,recreation and culture 772,728 729,076 898,222 728,721 768,786
Publicworks 1,832,241 2,18Q877 768,775 826,251 762,015
Operating grants&contributions 7,512,894 9,745,609 5,876,028 7,411,902 5,675,777
Capital grants&contributions 19,297,015 21,086,051 7,733,439 2,309,678 2,255,393
Total Governmental Activities Program Revenues 49,462,427 52,985,382 33,566,442 27,157,797 26,144,318
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,894,676 7,804,904 7,494,819 7,635,352 7,33$640
Office Com plex-Parkview 1,306,042 1,254,521 1,215,860 1,222,971 1,217,985
Capital grants&contributions 47,768 94,076 660,685 236,419 -
Total Business-type activities program revenue 9,24$486 9,153,501 9,371,364 9,094,742 8,556,625
Total Primary Government program revenue 58,710,913 62,138,883 42,937,806 36,252,539 34,700,943
Net(Expense)/Revenue
GovemmentalActivities (38,656,038) (33,088,330) (43,689,280) (8Q193,141) (116,346,560)
Business-typeactivities (119,077) (22Q841) (269,201) (40$003) (251,224)
Total Primary Government Net Expense (38,775,115) (33,309,171) (43,958,481) (80,601,144) (116,597,784)
General Revenues&Other Changes in Net Position
Governmental Activities:
Taxes:(Combined/Net Pass-through) 41,931,997 39,952,738 38,742,060 73,105,614 114,880,586
InvestmentEarnings 494,452 35$674 318,996 1,102,309 2,15$556
Contributions not restricted for specific purpose - - - 791,256 762,588
Gain(loss)on sales of assets 11,720 488,319 - - -
Miscellaneous 1,726,007 1,994,506 3,894,203 5,838,881 3,169,977
Specialltem (5) - - - - -
Transfers In/(Out) 437,500 437,500 437,500 440,000 (6,046,761)
Gain on Transfer to Successor Agency/Extraordinary Gain(4) - - - 144,011,578 -
Total Governmental Activities Net Revenues 44,601,676 43,231,737 43,392,759 225,289,638 114,924,946
Business-Type Activities:
Investment Earnings 11,774 13,646 3,512 13,411 22,559
Gain(loss)on sales of capital assets 47,938 - - -
Miscellaneous - - - - -
Transfers Out (437,500) (437,500) (437,500) (44Q000) 6,046,761
Total Business-type activities (377,788) (423,854) (433,988) (426,589) 6,069,320
Total primary government 44,223,888 42,807,883 42,958,771 224,863,049 120,994,266
Change in Net Position
GovernmentalActivities: 5,945,638 10,143,407 (296,521) 145,096,497 (1,421,614)
Business-TypeActivities: (496,865) (644,695) (703,189) (834,592) 5,818,096
Total primary government 5,448,773 9,498,712 (999,710) 144,261,905 4,396,482
(I)City has changed the manner in which it reports RDA espenditures.RDA and Housing expendihmes are being reparted under"Hausing&Redevelopment".
(2)Required payment made to the Sarte of California.For FY 2010 was$25,526,215 and FY 2011 was 55,255,397.
(3)On Febntary 1,2012 the State of California dissolved the City ofPalm Desert Redeve[opment Agency as part of the Statewtde dissolution of all
City RedevelopmentAgencies,which in turn cr�eated the Successor Agency to[he Redevelopmen[Agency of the City of Palm Desest.
(9)The City's Capital Properties Capital Projeet Fund received$65,566,963 and the HousingAssetFund received$�,571,706for a rombined total af�
$72,138,669 of capita[bond proceeds transjerred from the Seecessor Agency.
(5)Ciry established an a[lowance for advances owed by the Successa�Agency.
181
�s +
TH IS PAG E I NTENTIONALLY LEFT BLAN K
182
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
GeneralFund: 2020 2019 2018 2017 2016
Nonspendable 7,196,092 10,559,396 10,509,094 9,067,979 9,528,630
Restricted - - - - -
Committed 66,012,415 63,197,223 59,666,638 - -
Assigned 16,196,564 15,964,130 15,492,508 658,817 991,853
Unassigned 3,473,480 3,322,321 4,702,308 74,259,748 71,842,172
Total General Fund 92,878,551 93,043,070 90,370,548 83,986,544 82,362,655
All other Governmental Funds:
Nonspendable 15,705 193,189 1,726 1,276 3,052
Restricted 168,806,454 175,780,733 169,549,126 171,044,474 165,411,544 (5)
Committed 16,275,373 16,247,652 16,751,821 16,771,055 16,873,834
Assigned 27,133,815 21,238,271 23,258,063 23,250,337
Unassigned - - - - -
Total all other Governmental Funds 212,231,347 213,459,845 209,560,736 211,067,142 182,288,430
General Fund: 2015 2014 2013 2012 2011
Nonspendable 10,312,261 7,745,320 7,678,250 2,926,739 2,939,850 (�)
Restricted - - - - -
Committed - - - - -
Assigned 1,771,278 4,425,423 3,224,761 3,297,152 4,501,159
Unassigned 67,727,130 66,203,203 65,311,919 69,438,971 66,776,414
Total General Fund 79,810,669 78,373,946 76,214,930 75,662,862 74,217,423
All other Governmental Funds:
Nonspendable 348 6,713 (4) 49,319,200 39,525,247 40,925,918
Restricted 106,261,212 114,194,435 (4) 76,725,388 69,065,451 230,623,054
Committed 16,952,887 21,644,068 15,649,703 20,289,309 17,285,733 (2)
Assig ned 24,172,531 24,429,824 14,144,969 17,552,726 19,375,999
Unassigned - - - - -
Total all other Governmental Funds 147,386,978 160,275,040 155,839,260 146,432,733 (s) 308,210,704
(1)RDA naade payment on advances fronz the city.
(2)Housing Asset fund transfer for Capital Asset replacement to the Houring Authority.
(3)On Fehruary I,2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City RedevelopmentAgencies,which in turn created the Successor Agency to the RedevelopmentAgency of the City of Palm Desert.
(4)Advances to the Successor Agency reclassifeed from Nonspendable to Restricted.for Special Revenue Funds.
(5)The City's Capital Properties Capital ProjectFund received$65,566,963 and Xhe HousingAssetFund received$6,571,706for a combined
total of$72,138,669 of capital hond proceeds transferred from the Successor Agency.
183
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Vlodified Accrual Rasis of Acwanting)
Revenues: 2020 2019 2018 2017 2016
Taxes 59,635,918 67,102,185 61,906,559 59,466,545 56,735,503
Specialassessmentscollected 3,48�,924 3,948,157 3,445,246 3,318,114 3,296,705
Licenses&permits 1,268,965 1,416,829 1,326,049 1,678,709 2,057,843
Intergovemmental revenues 6,401,926 6,194,152 5,682,704 7,249,515 15,429,238
Rental income 7,071,648 6,899,916 6,675,632 6,439,458 5,896,480
Charges for services 5,272,577 5,223,285 2,894,821 2,356,363 2,082,843
Investment Earnings 10,311,159 7,166,097 3,626,892 2,086,224 1,837,319
Fines&forfeitures 127,801 273,434 162,370 135,276 295,269
Miscellaneous 4,741,905 2,892,940 2,886,542 2,594,433 2,317,499
Contributions from other government - - - 3,55Q991 -
Contributions from property owners 7,868
Total Revenues 98,313,823 101,116,995 88,607,115 88,875,628 89,956,567
Expenditures:
General government 21.468,512 24,269,546 19,281,102 16,887,293 15,783,955
Housing&redevelopment 7,090,941 7,504,119 8,522,801 9,239,680 6,438,849
Pass-through-agreement - - - - -
Public safety 37,021,952 36,901,283 36,247,656 34,674,418 33,750,347
Parks,recreation 8 culture 5,902,166 6,497,391 6,467,713 7,157,821 6,831,534
Publicworks 21,994,806 8,728,354 12,183,852 8,794,894 11,031,584
Contributions to property owners - - - - 19,584,487
Capital outlay 5,117,968 3,396,511 915,422 2,169,035 7,07�,738
Debt service:
Principal retirement 225,000 587,000 15Q000 237,000 257,000
Interest and fiscal charges 21Q292 244,050 260,971 277,814 296,336
Total Expenditures 99,03'1,637 88,'128,254 84,029,5'17 79,437,955 101,045,830
Excess(deficiency of Revenues
over(under)expendRures (717,814) 12,98$741 4,577,598 9,437,673 (11,089,263)
Other financing sources(uses)
Transfers in 10,702,762 5,319,448 6,613,352 9,406,888 6,030,706
Transfers out (11,377,965) (5,736,558) (6,313,352) (12,218,428) (6,075206)
Specialltem (3) - (6,000,000) - - -
Extraordinary Gain/(Loss)(2) - - - - 72,138,669
Sale of property 225,000
TotalOtherfnancingsources(uses) (675,203) (6,417,110) 300,000 (2,81�,540) 72,319,169
Net Change In Fund Balance (1,393,017) 6,571,631 4,877,598 6,626,133 61,229,906
Debt service as a percentage of noncapital expenditures 0.5% 'I.0% 0.5% 0.7% 0.6%
Revenues: 2015 2014 2013 2012 (1) 2011
Taxes 52,571,369 50,464,51� SQ768,200 82,901,921 124,672,062
Special assessments collected 3,058,766 3,486,220 3,654,337 3,232,923 3,262,163
Licenses 8 permits 1,757,250 2,262,907 1,586,796 1,041,834 1,089,543
Intergovemmental revenues 18,981,304 7,380,744 5,097,892 6,637,426 7,605,282
Rentalincome 5,660,762 5,626,850 5,367,630 5,146,499 5,011,205
Charges for services '1,819,464 2,165,020 898,222 728,721 701,481
Investment Eamings '1,242,662 864,853 373,012 1,469,142 3,102,649
Fines&forteitures 224,612 231,768 242,568 276,452 310,840
Miscellaneous 2,377,923 3,539,552 9,028,698 6,8'14,924 3,095,689
Contributions from other government 9,168 10,749,218 - - -
Contributions from property owners 42Q590
Total Revenues 87,703,280 87,192,233 77,017,355 108,249,842 148,850,914
Expenditures:
General govemment 15,467,746 17,070,816 14,028,252 15,851,883 15,273,085
Housing&redevelopment 9,349,021 6,650,178 5,650,666 8,942,097 18,033,576
Pass-through-agreement - - - 16,994,265 39,418,936
Publicsafety 31,819,214 29,139,735 28,299,876 27,551,113 26,824,434
Parks,recreation&culture 6,236,717 5,802,941 6,162,449 3,685,334 3,845,901
Publicworks 13,082,388 12J41,764 9,819,591 11,306.021 11,256.499
Contributions to property owners 49 2,350,187 - - -
Capital outlay 19,339,987 6,273,822 2,788,676 9,575,227 14,205.889
Debt service:
Principal retirement 4,944,000 674,000 31$000 9,032J07 22,914.707
Interest and fiscal charges 240,219 242,495 255,239 10,187765 18,176,454
Total Expenditures 100,479,341 80,945,938 67,322,749 113,126,412 169,949,481
Excess(defciency of Revenues
over(under)expenditures (12,776,061) 6,246,295 9,694,606 (4,876,570) (21,098,567)
Other financing sources(uses)
Transfers in 6,132,859 4,861,551 11,274,539 24,453,724 69,995,597
rransfersou� �s,e�i,sss� �s,aza,osi� �ii,oio,sso� �za,ois,�za� pqsss,ss��
Extraordinary Gain I(Loss)(z) - - - (1ss,sss,ssz) -
Sale of property 2,163,222 911,001
Total Otherfinancing sources(uses) 1,324,722 348,501 263,989 (155,455,962) (560,000)
Net Change In Fund Balance (11,451,339) 6,594,796 9,958,595 (160,332,532) (21,658,567)
Debt service as a percentage of noncapital expenditures 6.4% �.2% 0.9% �8.6% 26.4%
(l)On February 1,2012 the Smte of Ca[if i'nia dis.eo(ved the Ciry q(PnLn Desert Redeve[oprnentAgency as part q(the Statewide disso[ution nfal[
Ciry Redeve(opnient Agencies,which in tw�n created the Sucressw�Agency tn the Redeve[apmentAgency o(the City of Pa[rri Dasert.
For more in(armation nn the dissolution of tke RDA please see Note 16 mid 77.
Q)The Ciry:s Capzm(Propernes Capi[a!Praject Fund received$65.566,9h3 mrd the Housing Asse[Fund received$6,571,706(ar a combined
tnml of$72,13R,669 a(capita(bond proceeds trmrsfen�ed fro�n the Sucressor Ageney.
(3)Ciry estab(ished mi a([arvance,for aAvances owed by the Successm�Agency.
184
City of Palm Desert
Graphs-Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Total Revenues
$30Q000,000
OCambined other(I)
$250,000,000
$200.000,000 ■Miccelleneauc oa,e��(2)
$I SO,OOQ000
Olnrergavernmenml revenucs
$100,000,000
■�i�e�ses&�erm�r�
$50,000,000
$0
o a a n �o v, � �, c� ■ra.e��s�e��oin.z.zez.z�,e�,�z
fu
0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N
} �jl ,. } ,. ,. } �'�1 ,. �jl
r� w r� r� r� r� r� w r� w
Total Expenditures
$300,000,000
■Pvrks_recreetian&culwre
$250,000,000
oao«-m�o�gn-og�eeme��
$200,000,000
ooee���e�,d�m,ez fa7
$150,OOQ000
■Cvpiml outley
$100,000,000 pPubl�c�vork.s f4)
$SQOOQ000
oeoer��ar��y
$O �Hausing&Redevela�ment
O O� 00 l� �D � � M N
N
O O O O O O O O O �
N N N N N N N N N N
� � � w � � � � w w 'c����a�co���,�,��,�
(I)Combined Other is a combtna[ion of rental income,investment earnings,and chm�ges Jor services.
(2)Misrellaneous Other is a rombina[ion offines ancl forfeitures,miscellaneous,rontributions from other govevnnaents,ancl contril>utioi2s from property owners.
(3)Debt Fcpenditures is a rombination of interesUfiscal charges and principal retirement.
(4J Public works is a cambination of public wor/cs and contributions to property awners.
Note.�Graphs eecludes Other jlnancing sourres and uses.
185
City of Palm Desert
Supplemental - Historical General Fund Revenues
(including Transfers In)
Last Ten Fiscal Years
FY 2020 2019 2018 2017 2016
Revenue Type:
Sales Tax $ 18,445,806 $ 21,434,387 $ 18,627,704 $ 18,505,449 $ 18,994,779
Transient Occupancy Tax 11,681,583 17,250,843 17,019,034 15,054,259 11,252,997
Property Tax(3) 11,101,584 11,074,207 10,777,998 10,157,813 10,461,595
Investment Earnings 4,181,814 2,672,643 1,237,562 644,341 725,015
Transfer In 2,472,976 937,202 1,610,830 1,472,852 1,390,258
Franchises 3,025,984 3,078,855 3,097,521 3,146,702 3,095,873
State Subventions(1)(3) 60,593 82,722 38,876 23,101 59,317
Building&Grading Permits 953,176 1,064,071 1,048,973 1,247,390 1,216,ll5
Reimbursements (4) 1,375,770 1,468,351 1,388,654 1,407,811 1,589,511
Business License Tax 1,038,137 1,216,712 1,154,275 1,118,183 1,269,082
Timeshare Mitigation Fee 1,467,905 1,678,375 1,543,762 1,467,028 1,500,683
Plan CheckFees 468,180 619,763 691,096 431,115 592,818
Property Transfer Tax 566,468 727,978 664,822 690,975 491,060
Other Revenues(2) 3,130,862 2,352,803 1,951,122 2,185,703 2,189,063
Total General Revenue � 59,970,838 $ 65,658,912 $ 60,852,229 $ 57,552,722 $ 54,828,166
FY 2015 2014 2013 2012 2011
Revenue Type:
Sales Tax $ 17,565,134 $ 17,258,958 $ 16,764,808 $ 15,836,953 $ 14,680,578
Transient Occupancy Tax 10,799,680 9,855,509 9,188,981 8,085,225 7,421,769
Property Tax(3) 9,710,990 9,041,428 9,529,018 7,976,494 8,341,728
Investment Earnings 416,656 405,456 126,206 408,661 793,461
Transfer In 2,179,472 1,373,786 2,127,655 2,240,703 2,691,634
Franchises 3,102,431 3,007,215 2,892,805 2,856,679 2,771,594
State Subventions(1)(3) 155,049 22,089 26,691 25,759 236,2ll
Building&Grading Permits 1,279,706 1,695,303 1,206,935 750,442 783,031
Reimbursements (4) 1,604,707 1,809,323 1,868,804 2,535,977 1,971,505
Business License Tax 1,160,207 1,169,316 1,149,551 1,076,541 1,085,411
Timeshare Mitigation Fee 1,483,158 1,333,586 1,292,859 1,110,227 1,192,490
Plan Check Fees 505,370 662,893 500,698 275,728 317,332
Property Transfer Tax 558,965 530,556 520,393 485,040 399,280
Other Revenues(2) 1,713,758 1,932,009 1,961,314 1,398,669 1,475,154
Total General Revenue $ 52,235,283 � 50,097,427 $ 49,156,718 $ 45,063,098 $ 44,161,178
(I)State Subventions is any combination of�motor vehicle,off highway in-lieu,and subventions from state.
(2)Other Revenues is any combination of�miscellaneous penalties and interest,permits,grants,parking bails,fees,
sales of maps and publications,vehicle and court fines,rental income and other revenues.
(3)The State of�California reprogramed motor vehicle fees, the City now receives this as property taxes.
(4)Reimbursements is a combination of RDA costs and other reimbursements,due to dissolution in February 2012 the RDA reimbursement
is limited and applies to existing projects.
186
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
��o,000,000
$60,000,000
$�������� OCombinedOther(1)
■Interest
$40,000,000 ■Propeny TaX
0'Cransient Occupancy Tax
$30������ OSalesTax
�2���������
�1���0����0
��
O Q1 a0 f� c0 N V M N
N
O O O O O O O O O O
N N N N N N N N N N
� � � � � � � � � �
LL LL LL LL LL LL LL LL LL LL
(1) Combined Other is any combination of transfers,franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees,plan checkfees,property
transfer tazes. It also may include any combination of miscellaneous bails,fees,fines,grants,
incomes,penalties,permits, sales and taxes.
*State Subventions is any combination of motor vehicle, off-highway in-lieu, and
subventions fi^om state.
187
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2020 2019 2018 2017 2016
Expenditure:
Public Safety(1) $ 21,415,334 $ 20,975,032 $ 21,088,867 $ 20,424,249 $ 20,151,237
City Administration(2) 11,429,468 12,521,081 11,460,325 8,238,228 7,971,706
Public Works Administration 2,457,045 2,149,715 2,333,897 2,637,630 2,664,871
Community Promorions 947,370 1,249,674 1,179,305 1,062,611 791,565
StreetMaintenance 2,212,933 2,185,648 2,020,797 2,418,451 2,709,328
Building Safety 1,661,372 1,828,083 1,579,734 1,849,442 1,888,290
Street Resurfacing - - 2,760 25,326 1,083,919
Public Works(4) 1,151,447 1,250,969 1,133,007 970,877 1,004,989
Other Expenditures(3) 18,860,388 20,826,188 13,669,533 18,302,019 14,010,275
Total Expenditures $ 60,135,357 $ 62,986,390 $ 54,468,225 $ 55,928,833 $ 52,276,180
FY 2015 2014 2013 2012 2011
Expenditure:
Public Safety(1) $ 18,784,ll7 $ 17,306,342 $ 17,002,291 $ 16,532,894 $ 16,047,991
City Administration(2) 7,561,255 7,413,578 7,180,519 7,670,377 8,023,314
Public Works Administration 2,645,443 2,556,967 2,528,131 2,527,817 2,380,255
Community Promorions 749,631 618,138 575,119 526,804 497,366
Street Maintenance 2,631,590 2,806,168 2,353,655 2,446,854 2,522,117
Building Safety 1,847,798 1,783,918 1,517,937 1,538,506 1,523,748
StreetResurfacing 998,463 4,466 1,179,743 2,332,968 2,268,901
Public Works(4) 1,067,837 1,018,435 1,505,018 1,056,998 1,354,255
Other Expenditures(3) 14,512,426 14,430,399 14,762,237 8,984,441 12,894,776
Total Expenditures $ 50,798,560 $ 47,938,411 $ 48,604,650 $ 43,617,659 $ 47,512,723
(1)Public Safery is any combination of animal regulation,police services, community safety and traffic safety expenditures, this does not include
for Fire Services.Fire Services are reported in a different fund.
(2) Ciry Administration is any combination of community services, independent audit, City attorney, Ciry clerk, City council,
City manager, information technology, elections,finance,general services, human resources, insurance, legal special services,
legislative advocacy and unemployment insurance expenditures.
(3) Other Expenditures is any combination of acguisitions, committees, contributions, retiree health,planning&communiry development,
economic development, marketing, interfund transfers,parks, recreation and culture, extraordinary loss and visitor center, capital outlay,
special item, included in the transfer out is transfer to the Pire fund for its shortfall.
(4)Public Wor1�r is a combination of curfi&gutter,parking lot, auto fleet, corporate yard,
public building maintenance,Portola Community center,storm water permit.
188
City of Palm Desert
Supplemental Graph-Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
��o,000,000
�60,000,000
OCoinbined Other(I)
$50,000,000
OCommunily Promolions'
$40,OOQ000
oe�ni��wa��kt na�n���t��aro„
$30,OOQ000
$20,OOQ000 ■c��y aa�,�„�t���a��o„�z�
$10,000,000 �e�nr�sat iy�s�
SO I �
O Q� 07 l� \O Vl 7 M N
N
O O O O O O O O O O
N N N N N N N N N N
� � � � � � � � �" �
w w w w w w w w �. w
(1)Public Safety is any combination of animal regulation,police services,community safery and traffic safety expenddtures,thds does not include the cost
for Fire Services.Fire Services are reported in a differentfund.
(2)City Administration is any combination of communiry services,independent audit,Ciry attorney,City clerk,Ciry council,
City manager,information technology,elections,finance,general services,human resources,insuran�ce,legal special services,
legislative advocacy and unemployment insurance expenditures.
(3)Other Expenditieres is any combination of acquisitions,committees,contributions,retiree health,planning&community development,
economic development,marketing,interfund transfers,parks,recreation and culture,extraordinary loss and visitor center,capilal outlay,
special item,includecl in the transf'er out is transfer to the Fire fund for its shortf'all.
(4)Public Works is a combination�f curh&Qutter,parkinQ lot,auto fleet,corporate yard,
public building maintenance,Portola Community center,storm water permit.
189
�s +
TH IS PAG E I NTENTIONALLY LEFT BLAN K
190
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2020 2019 2018 2017 2016
Total General Revenue(2) $ 57,497,862 $ 64,721,710 $ 59,241,399 $ 56,079,870 $ 53,437,908
Population(1) 52,986 53,625 52,769 50,740 49,335
General Revenue Per Capita 1,085 1,207 1,123 1,105 1,083
FY 2015 2014 2013 2012 20ll
Total General Revenue(2) � 50,055,81 1 $ 48,723,641 $ 47,029,063 $ 42,822,395 $ 41,469,544
Population(1) 51,053 50,417 49,949 49,471 49,111
General Revenue Per Capita $ 980 $ 966 $ 942 $ 866 $ 844
FY 2020 2019 2018 2017 2016
Total General Expenditures(2) $ 51,498,878 $ 57,900,932 $ 49,992,388 $ 48,427,111 $ 48,134,252
Population(1) 52,986 53,625 52,769 50,740 49,335
General Expenditures Per 972 1,080 947 954 976
Capita
FY 2015 2014 2013 2012 20ll
Total General Expenditures(2) � 46,302,187 $ 44,183,659 $ 42,155,428 $ 42,099,903 $ 41,833,291
Population(1) 51,053 50,417 49,949 49,471 49,111
General Expenditures Per $ 907 $ 876 $ 844 $ 851 $ 852
Ca ita
(1)Population figures are as of'.Ianuary start of fiscal year.
(2)Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
191
City of Palm Desert
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Commercial
Fiscal Year Residential Institutional Less:Tax Total Taxable Total Direct Estimated Actual
Ended June 30 Property Industrial property Vacant Land Exempt Assessed Value Tax Rate Taxable Value(1)
Property
2020 11,781,804,552 2,771,257,791 63,343,035 300,879,417 * (45,437) 15,835,758,806 1.00000 15,636,583,544
2019 11,231,546,199 2,675,659,205 62,224,633 373,347,796 (326,679,322) 15,556,158,170 1.00000 15,045,226,485
2018 1Q757,283,204 2,554,854,761 59,762,684 385,457,449 (313,754,093) 14,94Q671,116 1.00000 14,445,331,683
2017 10,555,732,091 2,434,816,656 55,318,962 379,073,252 (306,174,550) 14,579,740,457 1.00000 14,095,158,994
2016 10,174,360,142 2,358,86Q033 56,540,001 412,090,006 (312,62Q004) 14,21Q000,198 1.00000 13,743,652,041
2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952) 13,552,997,813 1.00000 13,086,962,905
2014 9,043,372,632 2,247,924,054 64,595,519 426,33Q424 (297,139,386) 12,919,103,760 1.00000 12,453,921,285
2013 8,621,493,305 2,239,836,432 62,565,263 462,952,950 (300,313,265) 12,513,052,693 1.00000 12,064,845,537
2012 5,694,403,021 2,198,729,088 50,256,665 452,309,984 (288,975,823) 12,564,166,215 1.00000 12,123,771,553
2011 5,982,403,643 2,179,940,065 52,528,676 564,683,270 (288,907,720) 13,132,169,069 1.00000 12,707,884,566
(I)Estimated Actual Taxable Value=Net Taxable Value
*Per HDL there was an artifact change in the Riverside County Assessars data that occun�ed primarily behveen 201 B and 2019,new vs old system difJerences,
the few properties whieh are Listed as having asssessed value and being non-taxab/e nre either new to the roL[or are newly non-taxabLe for 2019.
Notes:Proper�ty Tares rn Riversrde Counry are subject to the State oj�Ca[ifornia's Pr-oposition 13,Jarvis-Gann Inifiafive which aUows reappraisals of r�eal proper�ty on/y
when there is a change in owne�ship or new ronstruction takes place. Further,the proposition limits prope��ty asszssment increase to no more than nvo(2%)per-cent
annua[Ly. Properry is assessed at one hundred percent(100%)of its fair market value at the time of new construction m�change in o�wier-ship.
Tlae tax rate is one(1%)percent ojthe asscrsed value.
Source.�Riverside Counry Assessor thru HDL Coren&Cone
192
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
�
Net Assessed Valuation - Historical Comparison
Value in Millions FY 2011 to FY 2020
$20,000
$15,000
$10,000
$5,000
$-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Percent Increase in Assessed Valuation
FY 2011 to FY 2020
Zo.00�ro --------------- ----------
15.00% -------------------------------------------------------------------------------------------------------------
10.00% -------------------------------------------------------------------------------------------------------------
0 5.08% 5.02% 4.15% 3.93%
5.00% ---------------------------------�-��14------ -----�.36%----�:4$%------ ----------------•
-3.43% -4.60% -0.49%
0.00% � � � � � � � � �
2 11 2012 013 2014 2015 2016 2017 2018 2019 2020
-5.00%
Historical Major Additions
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club#28 93/94 Desert Springs Marriott 86/87
Price Club/Costco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC#29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr(Best Buy) 97/98
Gardens on EI Paseo 98/99
Remodel Westfield Mall (Sears, Barnes&Noble) 04/05
Sears Automotive 04/05
Lowes Home Improvement 05/06
Walmart/Sam's Supercenters 05/06
Kohl's 07/08
Golfsmith Extreme 08/09
EI Paseo Village 09/10
Best Buy& Ulta 11/12
Remodel Westfield Mall (Dick's/H&M/Restaurants) 12/13
PGA Tour Superstore 12/13
Total Wine&More 13/14
Tesla Motors 15/16
Source:Riverside County Assessor thru HDL Coren&Cone
193
City of Palm Desert
Supplemental FY 2020 and 2019 Breakdown of Basic 1% Property Tax Rate
Not in Redevelopment Project Area
Taxing Agency FY 2020 Rate FY 2019 Rate
County General 28.177327% 28.177327%
County Free Library 2.728242% 2.728242%
County Structure Fire Protection 5.873086% 5.873086%
City of Palm Desert(1) 0.000000% 0.000000%
Desert Sands Unified School District 36.221587% 36.221587%
Desert Communiry College 7.526714% 7.526714%
Riverside County Reg.Park&Open Space 0.426231% 0.426231%
Riverside County Office of Education 4.094919% 4.094919%
Desert Hospital 1.996808% 1.996808%
Coachella Valley Public Cemetery 0339927% 0339927%
Coachella Valley Recreation&Park 2.071624% 2.071624%
Coachella Valley Mosquito&Vector Control 1369698% 1369698%
Coachella Valley County Water 2.736607% 2.736607%
Coachella Valley Counry Water Imp.District 80 2.972906% 2.972906%
Coachella Valley County Water Storm Water Unit 3.464324% 3.464324%
General Purpose Basic 1% 100.000000% 100.000000%
(1)City of Palm Desert is a No-Low Property Tax Ciry and the 7%represents what the state allocates to No-Low Properry
Tax Cities.
Source:County of Riverside,Property Tax Allocation Percentages, TRA 018-041.
194
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Cit Direct Overla in Rates
Basic Total Desert Sands Desert Coachella Coachella
Fiscal County-wide Direct Tax Unified School Community Valley Water Valley Water
Year Lev Rate Colle e Dist. District District I.D.58
y District g
2020 1.00000 1.00000 0.07381 0.03983 O.10000 0.00000
2019 1.00000 1.00000 0.07418 0.03978 0.10000 0.00000
2018 1.00000 1.00000 0.07251 0.04030 0.10000 0.00000
2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000
2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000
2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000
2014 1.00000 1.00000 0.10954 0.01995 010000 0.00000
2013 1.00000 1.00000 0.11156 0.01995 0.08000 0.00000
2012 1.00000 1.00000 0.11467 0.01995 0.08000 0.00000
2011 1.00000 1.00000 0.10036 0.01995 0.08000 0.00000
Notes: Proposition 13 limits the ability of the city to raise the property tax rate.
Source:CalMuni Statistics Inc
195
City of Palm Desert
Principal Property Taxpayers
Current and Ten Years Ago
2020 2011
Percentage of Total Percentage of Total
Taxable Taxable
Taxpayer Assessed Value City Tax Assessed Taxpayer Assessed Value City Tax Assessed
Value Value
Marriott Desert Springs $ 169,968,035 1.08% Marriott Desert Springs $164,824,823 1.29%
WEA Palm Desert 159,507,723 1.02% WEA Palm Desert LP 138,093,212 1.08%
Gardens on EI Paseo LLC 139,462,834 0.89% Desert Crossing II 88,684,713 0.70%
WVC Rancho Mirage Inc 127,141,159 0.81% Gardens SPE II 78,571,131 0.62%
PRU Desert Crossing LLC 102,201,791 0.65% Palm Desert Funding Co 60,970,223 0.48%
CC Cimarron LP 67,920,775 0.43% Elisabeth E.Stewart 58,380,362 0.46%
Bighorn Golf Club 66,300,439 0.42% Time Warner Ent 55,409,220 0.43%
First American Trust 60,166,959 0.38% Lomas de Arena 51,502,791 0.40%
Walmart Real Estate 54,318,454 0.35% WVC Rancho Mirage Inc 48,644,917 0.38%
Business Trust
Segovia Operations 52,818,440 0.34% Monarch Sevilla Venture 47,835,778 0.38%
Total $ 999,806,609 6.38% Total $ 792,917,170 6.22%
Note:The estimated properry taz revenue stated ahove is hased upon net taxahle values,tax ratzos and fiase year values that impact the revenue
calculation.As a result,parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts
of total revenue to the Ciry and Redevelopment Agency.
Source�HdL Coren&Cone thru Riverside County Assessor 17/I S and HdL Coren&Cone thru Riverside County Assessor OS/09
196
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Fiscal Year of the Levy����2��3�
Year Taxes Levied Collections Total Collections to Date
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years�4� Amount�4��5� of Levy
2011 5,312,856 4,560,417 85.84% 486,495 $ 4,776,795 89.91%
2012 5,478,345 4,366,451 79.70% 1,111,894 $ 5,478,345 100.00%
2013 5,398,524 4,913,780 91.02% 484,744 $ 5,398,524 100.00%
2014 5,623,740 5,048,787 89.78% 574,953 $ 5,623,740 100.00%
2015 5,911,501 5,523,658 93.44% 387,843 $ 5,911,501 100.00%
2016 6,212,993 5,943,252 95.66% 269,741 $ 6,212,993 100.00%
2017 6,731,899 6,022,566 89.46% 182,652 $ 6,205,218 92.18%
2018 6,729,952 6,553,297 97.38% 173,642 $ 6,726,940 99.96%
2019 6,867,405 6,640,656 96.70% 207,894 $ 6,848,550 99.73%
2020 7,202,939 6,502,032 90.27% 211,602 $ 6,713,634 93.21%
(I) City of Palm Desert is on the"Teeter Pla�a"with the County of Riverside. The first payment was
received in the fiscal year 1993/94.
(2) City of Palm Desert is a'No-Low Properry Tax City". Proposition 13 rolled the taz rates hack to 1973
which is when the Ciry of Palm Desert incorporated and the Properry Tax rates were zero.
Based on current state law the County allocates 7%of the 1%assessed values within the City less the
Redevelopme�zt Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes.
(3)Fiscal Year 1996/97 final total collected includes adjustments for No-Low property
tax co[lections from prior years modified by the County of Riverside. The County adjusted the payment to
the City of Palm Desert(FY1995/96)for the annexation of Palm Desert Country Club.
(4)Includes tax collections accrued as ofJune 3Q 2020.
(5)Includes amounts receivable f'or tax year 2019-2020 along with prior receivables due f'or prior tax years.
Source:Riverside County Auditor Controller Office and City of Palm Desert
197
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph-Historical Sales Tax Trends
June 30,2020
Top 25 Sales Tax Generators(1) Primary Economic Category
ALBERTSON'S FOOD CENTERS SUPERMARKETS
AMERICAN BUILDERS/CONTRACTOR SUPPLY SPECIALTY WHOLESALE STORES
ASHLEY FURNITURE HOME FURNISHINGS
BEST BUY STORES LP APPLIANCE/ELECTRONICS
BOT HOME AUTOMATION-RING ONLINE RETAIL
CARMAX AUTO SUPERSTORES AUTOMOBILE DEALER
CIRCLE K FOOD STORES SERVICE STATIONS
CONSOLIDATED ELECTRICAL DISTRIBUTORS SPECIALTY WHOLESALE STORES
COSTCO WHOLESALE COMPANY WHOLESALE GENERAL STORES
JOHNSTONE SUPPLY CO SPECIALTY WHOLESALE STORES
LEEDS&SON JEWELERS SPECIALTY STORES
LOWE'S HOME CENTERS BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
MATERIAL SUPPLY CO SPECIALTY WHOLESALE STORES
PALM ROYALE COLLECTIVE MISCELLANEOUS RETAIL STORES
RALPH'S GROCERY CO SUPERMARKETS
RAPPORT FURNITURE HOME FURNISHINGS
SAM'S CLUB WHOLESALE GENERAL STORES
SANTA FE COLLECTION SPECIALTY WHOLESALE STORES
SUPERIOR POOL PRODUCTS SPECIALTY WHOLESALE STORES
TARGETSTORES DEPARTMENTSTORES
TESLA MOTORS AUTOMOBILE DEALER
TOTALWINE&MORE SUPERMARKETS
TOWER MARKET SERVICE STATIONS
WAL-MARTSUPERCENTER DEPARTMENTSTORES
Q)Listed in Alphabetical Orde�
Sales and Use Tax Trends FY 2011- 2020
Millions /_/Chanqefrom PriorYear
$27.0
$25.0
$23.0 �s.i r
$21.0 s.i i
$19.0 1.8% 2.57% 0.66% 13.9%
$�7.� 7.9% 5.9% 2.9%
�a.s/ -In Lieu*
$15.0
$13.0
$11.0
$9.0
$7.0
N M a N lD I� 00 O1 O
N
O O O O O O O O O O
Amounts N N N N N N N N N N
��M�n�o�s $14.680 $15.836 $16.764 $77.258 $17.564 $18.994 $18.505 $18.627 $27.434 $18.445
Note:Curren[Ca[ifornia[awprohihi[s production of individua[[ax informa[ion as an effort not[o infr�inge on proprieta�y
informafion,therefore confiden5al information which is protected by law is no[c[isc[osed.
* The State ofCallfornia zrchanged Sales Tax Revenue with Property taxes,[his amount represents the portion ofsales tax tha[were eechanged.
Source:SBOE Data,MuniServices LLC. Ln Lieu given to city fi�om State ER4FProperty Taxes,City ofPalm Desert
198
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business Type
Governmental Activities Activities
Special Assessmentl Total Percentage Total Debt
Fiscal Local Obligation Note Capital Primary of Total Personal Per
Year Bonds b Payable Leases Government Income''` Capita a,`
2011 9,543,000 122,707 1,035,721 10,701,428 0.42% 218
2012 9,238,000 - 2,291,358 11,529,358 0.45% 233
2013 8,920,000 - 1,751,083 10,671,083 0.41% 214
2014 8,246,000 - 1,222,915 9,468,915 0.35% 188
2015 3,302,000 - 1,435,046 4,737,046 0.17% 93
2016 3,045,000 - 929,860 3,974,860 0.14% 81
2017 2,808,000 - 499,881 3,307,881 0.12% 65
2018 2,658,000 - 1,493,330 4,151,330 0.15% 79
2019 2,071,000 - 1,595,394 3,666,394 0.13% 68
2020 1,846,000 - 1,145,011 2,991,011 0.10% 56
Notes:Details regarding the city's outstariding debt can be found in the notes to the fenancial statements.
"-Personal income,population and per�caprta informatron provided by California Department ofFrnance,
and U S Census Bureau and/or estimated by City Finance using 1.5%growth rate.
b-Speciad Assessment Government Activities rncludes Highlands Undergrounding AD No#04-01,as ofJune 3Q 2020!he balance was$1.17M
`-Frscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A(Taxable)$2.5 millron to fund the
Energy Independence Loan Program. The actual Bond I.rsuance was far$2.OI Sm.At June 3Q 2020 the oustanding balance was�'0.355M
`� The City issued$1.136 million dollars of the Energy Independence Program(AB811 Assessments)Limiled Obligalion Improvement Bonds(Taxable)
The special assessment collection will commence during the fiscal year 2010-20LL. At June 3Q 2020 the outstandtng balance was$0.313M.
`�-In addition the Palm Desert FinancingAuthority issued$5.225 millron dollars of the Energy Independence Program Panable Rate Demand Lease
Revenue Bonds,Senes 2009(Federally Taxable). On September 2,20L4 the bonds were called in full.as of June 3Q 2017 their were no outstanding bonds.
�-Personal income and Per Caprta statrstic includes government and business type activities combined.
199
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of Actual
Special Assessment Taxable Value of Per
Bonds Property Capita
Note: There is no General Obligation Bonds from FY 2011 to PY 2020
200
City of Palm Desert
Supplemental Special Assessment Information
June 30,2020
2003 O1-O]
Revenae Bonds Community Facilities District 2004-2 Section 29
2003 Ol-Ol Revenue No.2005-1(University Park) Assessment District
District NameADescription 5 Silvcr Spur Ranch
Bonds 94-3 Merano' Utility Special Tax Bonds Series Limited Obligation
- 2006A Improvement Bonds
Undergrounding'
Bond Issuc Date 06/25/03 06/25/03 OS/09/06 3/29/2007
Final MaWrily Date 09/02/20 09/02/28 09/Ol/37 9/2/2037
HighcsllntcreslRalc 525% 5375% 5.424% 5.100%
Bond Issuc Amounl $ ],153,000 $ 2,34Q000 $ 67,915,000 29,43Q000
Maturcd Principal $ ],053,000 $ 1,OA5,000 $ 13,62Q000 6,560,000
Callcd Principal $ 1Q000 $ 160,000 $ 27,075,000 2,305,000
Oulstanding Bonds(4) $ 9Q000 $ 1,095,000 $ 27,28Q000 20,565,000
Rcdcmption Prcmium 3.00% 3.00% 3.00% 3.00%
Original Parcds ]21 20] 78 859
Activc Parccls 718 193 67 777
Rescrvc Requirement $ 69,180 $ 164,38] $ 2,465,700 $ 1,755,979
Rcscrvc Balancc 19/20 $ 72,954 $ 169,631 $ 2,679,058 $ 1,872,189
Principal Due 19/20«� � 9Q000 $ 95,000 $ 1,030,000 735,000
Principal Levied 19/20�3� � - � 98,647 $ 1,030,000 804,333
Interest Due 20/21«� � 2,363 $ 55,838 $ 1,435,375 1,020,979
InterestLevied 19/20�3� � - � 59,300 $ 1,461,125 1,738,224
19/20 Delinquency Rate 1.41% 3.73% 0.11% 039%
Arbitrage Installment Computation 06/25/23 06/25/23 OS/08/21 04/11/22
Date: 90%Rebate Due
Arbitrage Yield Rate 4.913% 4.9129% 5.3599% 5.0134%
Arbitrage-Amount Owed - - - -
ContinuingDisclosure LastReport 1/7/2020 1/7/2020 1/7/2020 U7/2020
Issued:
(I)Reserve Balances are as af 6/30/20.
(2)Anaount represents priricipal and inter�est collected during the FY 19/20 tax r�oll for�Debt Service Payment due in FY20/21.
(3)Lwied amounts reflect adjust»eents for�construction funds,reserve funds,redemption funds and other adjustments.
(4)Outstanding band balance at June 3Q 2020.
(5)The schedule presents the informatian for each individua[local obligatian bonded distnet.Assessment Districts
94-3 Merano and 01-01 Si[ver Spur were refi�nded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds
see nate 13 fbr additianal information.
Source:Wildan Financial Annual Report
201
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30,2020
2019/20 Assessed Valuation: $ 15,637,597,908
City's Share of
DIRECT AND OVERLAPPING TAX ASSESSMENT DEBT: Total Debt 6/30/20 %Applicable(1) Debt 6/30/20
Desert Community College District $ 337,130,000 18.445% $ 62,183,629
Desert Sands Unified School District 38Q450,000 34.118% 129,801,931
Palm Springs Unified School District 368,956,707 4.295% 15,846,691
City of Palm Desert Limited Obligation Improvement Bonds,Series 2007 1,641,000 100.000% 1,641,000
City of Palm Desert Community Facilities District No.2005-1 27,280,000 100.000% 27,28Q000
City of Palm Desert 1915 Act Bonds 22,928,000 100.000% 22,928,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 259,681,251
OVF.RLAPP[NG GF.NF.RAL FUND OBLIGATION DEBT:
Riverside County Gcncral Fund Obligations $ 759,807,924 5.284% $ 40,148,251
Riverside County Pcnsions Obligations 938,825,000 5.284% 49,607,513
Desert Sands Unificd School District Certificates ofParticipation 30,155,000 34.118% 10,288,283
Coachella Valley Recreadon and Park District Certificates of Participadon 158,806 26.479°/ 42,050
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 100,086,097
Less: Riverside County Supported Obligations -
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 100,086,097
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES) $ 549,773,028 0.229-100°/ $ 215,833,760
TOTAL CITY DIRECT DEBT $ 1,846,000 (3)
TOTAL OVERI,APPING DEBT $ 575,601,108
COMBINED TOTAL DEBT $ 577,447,108 (2)
(1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the pordon of the ovedapping dish-icPs assessed value that is within the boundaries of the city divided
by the dishicPs total taxable assessed value.
(2)Excludes tax and revenue andcipation notes,enterprise revenue,mortgage revenue and non-bonded capital Lease obligations.
(3)Includes special assessment debt with government commihnent,and lease revenue bonds,if applicable.
Ratios to 2019-2020 Adiusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.66%
Total Direct Debt 0.01°/
Net Combined Total Debt 3.69%
Ratios to Redeveloument Successor Aeencies Incremental Valuation $ (10,195,509,691)
Total Overlapping Tax Increment Debt 2.12%
Source:California Municipal Statistics,Inc.,City of Palm DeseR Finance Department
202
Ciry of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2020
Assessed Value $ 15,637,597,908
Debt Limit(15%of Assessed Value)(1) 2,345,639,686
Debt Applicable to Limit:
General Obligation Bonds 1,178,000
Less:Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit -
Legal debt margin $ 2,344,461,686
FISCAL YEAR
2011 2012 2013 2014 2015
Debt Limit 1,969,825,360 1,884,624,932 1,811,620,824 1,869,699,132 1,963,741,235
Total Net debt applicable to limit 1,658,000 1,624,000 1,589,000 1,526,000 1,489,000
Legal debt margin 1,968,167,360 1,883,000,932 1,810,031,824 1,868,173,132 1,962,252,235
Total net debt applicable to the limit
as a percentage of debt limit 0.08% 0.09% 0.09% 0.08% 0.08%
FISCAL YEAR
2016 2017 2018 2019 2020
Debt Limit 2,059,815,120 2,114,442,742 2,167,115,649 2,256,723,736 2,345,639,686
Total Net debt applicable to limit 1,451,000 1,410,000 1,368,000 1,310,000 1,178,000
Legal debt margin 2,058,364,120 2,113,032,742 2,165,747,649 2,255,413,736 2,344,461,686
Total net debt applicable to the limit
as a percentage of debt limit 0.07% 0.07% 0.06% 0.06% 0.05%
(1)Section 43605 of the California Government Code.
Source:California Municipal Statistic,Inc.San Francisco
203
City of Palm Desert
Pledged-Revenue Coverage
Last Ten Fiscal Years
Special Assessment Bonds Tax Increment b
Special Debt Service Special Debt Service
Fiscal Assessment Assessment
Year Collections Principal Interest Coverege Collections Principal Interest Coverege
2011 9,695,868 3,452,000 5,595,543 1.0717 39,400,572 22,24Q000 18,767,205 0.961
2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 e 15,290,000 17,651,958 1.000
2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 e 16,315,000 17,158,418 1.000
2014 ° 14,895,214 12,324,000 ° 4,954,432 0.8621 38,444,447 e 23,650,000 14,794,447 1.000
2015 10,848,129 9 8,159,000 f 4,543,692 0.8540 32,294,255 e 18,295,000 13,999,255 1.000
2016 8,537,227 25,401,000 " 4,463,786 0.2859 34,810,024 e 18,055,000 16,755,024 1.000
2017 5,896,670 3,192,000 3,233,399 0.9177 37,535,680 e' 16,255,000 e'' 21,280,680 1.000
2018 5,590,479 3,545,000 3,088,864 0.8427 23,428,001 e' 14,235,000 e'' 9,193,001 1.000
2019 5,608,312 2,427,000 2,942,348 1.0445 25,986,960 e' 17,210,000 e'' 8,776,960 1.000
2020 5,280,905 2,080,000 2,818,146 1.0781 27,833,500 e' 19,475,000 e'' 8,358,500 1.000
Notes:Details regardrng the crty's outstanding debt can be found in the notes to the financial statements.
" The City issued$Z.015 mtldion dollars of the Energyindependence Program(A8811 Assessnaents)Limited Obligation Improvement Bonds(Taxable)
The special assessment coldection will commence during the�scal year 2009-2010 with the f�rst interest payment paid on March 2,2010.
e-Tax increment bonds are backed by properry tax incremen!based on cadculation provided by the Riverside County tax assessor office.
Additional infbrmation on tax increment can be fbund in the nates to the fznancial stakements.
°-The Ciry issued$1.136 n:illion dollar.r of�the Energy Independence Program(AB811 Assessme�vt.r)Limited Obligation ImprovementBa�vds(Taxable)
The special assessment callection will commence during the fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued$5225 million dollar's afthe Energy Independence Program Pariable Rate Demand Lease
Revenue Bonds,Series 2009(Federally Tasahle). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first pr-incipal payment was paid on September 2,2010.
`�-A porlion afthe�50.51(2007)and�17.915(2008)millian CFD 2005-1(University Park)was prepaid in the amount of$6.269 Million.The prepaid
$6.269M and�2.280(2004-1)were called during on September 2,2014.
" The tatal amountpayable far the bonded ohligatians is dislntrsecl by the State afCalifornia Departmenk of�Finance ta the Ciry ofPalm Desert Succe.r.ror Agency.
The annual collection equal the annual obligarions.
�The City called the$5225 Million Energy Independence Program Pariahle Rate Demand Lease Revenue Bonds,Series 2009(Federally Taxable)in
fitll on September 2,2014 in the amount of�'4.485 Million.The Energy Fund used the remaining�'S.225 Band Funds in the amocmt of$2.155 Million
in addition to the�'2.5 Million loan fi-om the Ciry General Fund as praceeds m call the bond.r.
g The Ciry of Palm Desert loaned the Energy Fund$2.5 Millia�v ta caII the�'S.225 Millian Energy Independence Program Lease Revenue Bonds,
Series 2009(Federally Tasable).The$2.5 Million is included as Special Assessment Collections.
h-During the Fiscal Year 2015-1 h the Communities Facilities District 2005-1(University Pask Series,Special Tax Bands Series 2006A and Series 2007
defeased$20.885Mafthe original issued$67.715M.
i-During the Fiscal Year 2016-17 the Successor Agency issued fbur series of�bonds(I)the Tax Allocatian Refunding Bonds,2017 Series A($52.39M),
(ii)Taxable Tax Allocation Refunding Bonds,2017 Series B($140.130M),Tax allocation Refunding Bonds,2017 Serie.r H-A($7.365M),and
(iv)Taxable Tax Allocation Refunding Bands,2017 H-B ($45.815M).See Note 18 Tax Allocatian Bonds.The 2017 Refunding Bonds refunded all of the
tax allocatian r-evenue hands,-with the�ceptian af the Praject Area Na.1 2007A Bonds,and the Project Area No.2 2003 Bonds.
204
City of Palm Desert
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease) Income CY a Income CY Rate b Population (Decrease) Rate b
2020 52,986 -1.19% $2,916,615,248 $ 55,045 17.20% 2,442,304 0.09% 14.70%
2019 53,625 1.62% $2,873,512,560 $ 53,585 4.90% 2,440,124 1.00% 4.40%
2018 52,769 4.00% $2,831,046,858 $ 53,650 5.00% 2,415,955 1.31% 4.80%
2017 50,740 2.85% $2,789,208,727 $ 54,971 4.00% 2,384,783 1.57% 5.70%
2016 49,335 -3.37% $2,747,988,894 $ 55,701 4.20% 2,347,828 1.71% 6.70%
2015 51,053 1.26% $2,707,378,221 $ 53,031 4.60% 2,308,441 1.25% 6.50%
2014 50,417 0.94% $2,667,367,705 $ 52,906 4.90% 2,279,967 1.10% 8.40%
2013 49,949 0.97% $2,627,948,478 $ 52,613 6.00% 2,255,059 1.23% 10.20%
2012 49,471 0.73% $2,589,111,801 $ 52,336 7.74% 2,227,577 0.44% 11.99%
2011 49,111 -5.68% $2,550,849,065 $ 51,940 8.67% 2,217,778 3.66% 14.44%
a-Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%.Income data wall be
updated once the actual data is available.
b-Unemployment rate for.fisca[year 19/20 is based on annual information from State of California Employment Development Department
Labor Market Informarion Division(not seasonally adjusted)
Sources:State Department of Finance,State Employment Development Department
205
City of Palm Desert
Principal Employers
Current and Ten Years Ago
2020 2011
Percentage of Percentage of
Employer Employees Rank Total City Employer Employees Rank Total City
Employment Employment
JW Marriot-Desert Springs JW Marriot-Desert Springs
Resort&DS Villas 2,304 1 10.87% Resort 2,304 1 7.00%
Universal Protection Services Universal Protection Services
1,500 2 7.08% 1,500 2 4.56%
Securitas-Security Service
USA 700 3 3.30/o Guthy Renker Corp.
° 825 3 2.51%
Avida Caregivers Securitas-Security Service USA
550 4 2.59% 700 4 2.13%
Organization of Legal Pro's Desert Arc
501 5 2.36% 400 5 1.22%
Sunshine Landscape Westin Desert Willow
500 6 2.36% 280 6 0.85%
Costco Wholesale Bighorn Golf Club
250 7 1.18% 250 7 0.76%
Bighorn Golf Club Time Warner Cable
250 8 1.18% 236 8 0.72%
Yellow Cab of Desert Indian Ridge Country Club
160 9 0.75% 200 9 0.61%
Whole Foods Market Marriott Shadow Ridge
150 10 0.71% 200 10 0.61%
Totals 6,865 32% Totals 6,895 21%
Sources:Reference USA,CA Employment Development Department-Federal and State Government not included
206
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2020
City/Municipal Government
Form of Government: Council-City Manager/Charter City
Date of Incorporation: November 26, 1973
Number of Employees: 112 Full-time Employees
Size of City: 26.96 Square Miles
Geographic Location: Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets: 170 paved street miles
Number of Business Licenses: 6,121 active business licenses
Number of Hotels&Rooms: 18 hotels,2,726 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff-75 positions plus 37 support staff
Fire Department Contract with Riverside County/State Fire 57 positions plus 4.52 Fire Prevention staff
Animal Control Riverside County Animal Services
Water&Sewer Coachella Valley Water District
Trash Collection Burrtec-Waste Management
Electric Southern California Edison
Gas Southern California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
Elementary School(grades K-5) 4
Middle School (grades 6-8) 1
High School (grades 9-12) 1
Community College-College of the Desert 1
CSUSB-Palm Desert Campus 1
UCR-Palm Desert Graduate Center 1
Insurance Coveraqe
General Liability Coverage Calif.Joint Powers Insurance Authority $50 Million/Event
(Excludes Earthquake&Flood) Excess Coverage:from$2 Million up to$50 Million limit
Special Events Calif.Joint Powers Insurance Authority $1 Million
Worker's Compensation Calif.Joint Powers Insurance $10 Million
Property Insurance Calif.Joint Powers Insurance Based on Prop.Value
Health Insurance
Medical California PERS;choice of PPO, HMO,Kaiser, Blue Shield
Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability-The Hartford Insurance Company
Life The Hartford Insurance Company
Retirement California PERS-Public Employees'Retirement System
Source:City of Palm Desert
20�
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
Last Ten Fiscal Years
Function/Program 2020 2019 2018 2017 2076 2015 2074 2013 a 2012 a'b 2011 a
General Government
City 33 31 31 32 32 34 34 33 26 31
Economic Dev&Housing 6 11 11 10 11 13 13 13 12 17 24
Public Safety 30 28 29 29 28 26 25 24 24 25
Police&Fire(1) 174 172 179 170 163 169 173 157 162 155
Public Works 38 39 39 39 40 40 40 38 40 47
Totals 286 281 288 281 276 282 285 264 269 282
(1)The Ciry operates as a"contract city°utilizing,primarily,agreement with other governmental entities,private firms and individuals
to provide services.
Contr-acted services include:Police and Fire protection through Xhe County ofRiverside,Cal-Fir-e,animal control,health services,
legal services and landscape maintenance.
a-As ofJune 2011 realignments were made due to budget cuts,retirements and layoffs,these continued to FY2013.
b- On February 1,2012 the State of California dissolved the City ofPalm Desert Redevelopment Agency as part of the Statewide dissolution of all
City RedevelopmentAgencies,which in tur-n created the Successor Agency to the RedevelopmenXAgency of the City ofPalm Desert.
Source:City of Palm Desert Financial Plan,Califor•nia Department of Forestry and Fire Protection,Riverside County Sheriffs Department
20$
City of Palm Desert
Operating Indicators by Function/Program
Last Ten Fiscal Years
FunctionlProgram 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
General Government
Business License Inspections " " " " ` 24 33 196 477 515
Contrected Services-Burrtec Waste (1)
Refuse Collected(tons) 5$096 59,154 56,346 54,301 52,772 54,865 57,935 52,131 49,205 53,108
RecyclablesCollected 21,772 27,391 28,119 26,651 23,818 24,611 26,424 24,562 23,588 22,867
Public Safety
PhysicalArrests 621 758 1,654 1,620 1,254 1,946 1,348 986 1,012 1,134
Parking Violations 899 375 575 587 712 794 386 198 569 332
Traffic Violations 1,392 3,525 7,012 6,939 6,223 5,525 5,284 5,080 6,216 8,360
Emergency Responses-Fire Department 15,088 1 Q009 9,984 9,617 9,285 8,628 $235 7,907 7,151 7,720
Fires Extinguished 147 93 90 68 103 88 106 104 101 107
Fire Inspections 3,372 5,397 3,378 1,274 2,118 2,989 2,552 3,048 5,235 4,651
Building Permitslssued 3,115 3,912 3,644 4,734 4,704 4,909 5,552 4,548 3,448 3,711
Building Inspections Conducted 13,439 13,965 18,601 23,542 24,756 24,057 24,830 19,107 14,749 14,069
Public Works
Street Resurfacing(miles) (3) 16.9 31.6 7.3 25.8 2.9 8 34 23 60 5
Parks,recreation&culture
Athletic Field Permits Issued 643 2,990 2,934 3,197 2,997 4,430 6,548 2,635 3,682 6,050
Amphitheater/Pavilions Permits Issued 6 119 121 106 104 283 247 128 266 286
CommuniryCenterAdmissions 9,746 52,203 60,769 51,694 64,493 53,426 50,204 53,062 69,240 30,298
AquaticCenterAdmissions (2) 32,905 52,102 53,739 58,023 6Q359 64,103 43,545 48,663 45,909 4,329
(1)The City operates as a"contract ciN"utilizing,primarily,agreemen�with other governmental entities,priva�e firms and individuals
lo provide services.
Contracted services include:Palice and Fire protecfion throesgh the County of Riverside,animal conhrol,health services,
legal services and Landscape maintenance.
(2)Agimtic Cenler operations began in June 2011,managed by the YMCA.
(3)New n¢ethods ofstreet resurfacing have improved efficiencv,therefare eyualing more miles resinfaced.
(")Per Building&Safery Deparhnent business license inspections are no longer done.
Sources:Riverside Counry Sheriff's Dept.,Califo�nia State Department ofForeshy&Fire Proteckon,
Ciry ofPalm Desert,Coachella Yalley Recreation&ParkDistrict,Burr�ec Waste and The YMCA.
209
City of Palm Desert
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Function/Program 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
General Government
Con[rac[ed Services(1)
Callection trucks 25 25 24 24 35 30 30 36 36 51
Public Safety-Police&Fire
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub Stations 1 1 1 1 1 1 1 1 0 0
Patrol Units-Cars 27 29 30 29 29 29 26 28 31 31
Patrol Unils-Mororcycles 7 6 9 9 11 10 10 10 10 10
Fire Stations 3 3 3 3 3 3 3 3 3 3
Fire Trucks 4 Puls 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd
Ambulance 4 Plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd 4 plus 1 Rsrvd 4 plus 1 Rsrvd 3 plus 1 Spprt
Fire Prevention Pick-ups 25 4 3 3 3 3 3 3 3 3
Public Works
Streeta(miles) 170 170 170 170 170 170 170 170 174 159
Traffc Signals 99 99 99 99 98 98 98 98 98 97
Parks,recreation 8 culture
Acreage 201 201 201 201 201 201 201 201 201 201
Total Parks 13 13 13 13 13 13 13 13 13 13
Playgrounds 16 16 16 16 16 16 16 16 16 16
Baseball/softball diamonds 8 8 8 8 8 8 8 8 8 8
Soccer/foot6all fields 9 9 9 9 9 9 9 9 9 9
Baskelball Courls 11 11 11 11 11 11 11 11 11 11
Tennis Courts 10 10 10 10 10 10 10 10 10 10
Volleyball Courts 8 8 8 8 8 8 8 8 8 8
Communiry Centers 2 2 2 2 2 2 2 2 2 2
Skate6oard Parks 2 2 2 2 2 2 2 2 2 2
AquaticCen�er � � 1 1 1 1 1 1 1 1
Commercial Office Space
(Parkview Office Complex)
LeasableSpace(squarefeet) 50,322 W,322 50,322 50,322 50,322 W,322 W,322 W,322 50,322 50,322
Occupancy Rate 91% 91% 82% 84% 90% 90% 86% 88% 83% 90%
Number of Tenants by Type
Government(State,local regional) 7 7 7 7 9 8 9 8 10 10
Non-Profit 4 4 3 3 4 3 4 4 5 7
Private 3 3 2 3 1 1 4 5 3 4
Square Footage lease by tenant
Government(State,local regionap 31,607 31,607 30,907 32,287 33,127 30,907 31,921 31,321 32,021 32,696
Noo-Profit 7,341 6,621 4,061 4,061 3,561 6,269 3,294 4,467 5,215 5,663
Private 6,693 7,468 6,218 6,938 8,688 8,025 8,025 8,513 4,310 7,350
Vacant 4,681 4,626 9,136 8,416 4,946 5,121 7,082 6,021 8,776 4,613
Municipal Golf Course
(Desart W illow Golf Reaorl)
Courses-Fire Cliff and Mountain View 2 2 2 2 2 2 2 2 2 2
Holes 36 36 36 36 36 36 36 36 36 36
GolfCarts 172 172 172 172 172 172 172 172 172 172
qubhousesquarefwtage 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000
Rounds perCourse
Fire qiH 38A57 48,646 46,620 39,424 39,366 44,845 45,841 45,645 45,005 44,745
MountainView 35,332 43,523 43,712 39,931 40,910 42,407 43,160 38,669 41,666 39,178
TotalAnnualRounds 73,389 92,169 9Q332 79,355 8Q276 87,252 89,001 84,314 86,671 83,923
([J The City operote.s as a"cwvract city"utili�ing,pr�imnrily,agi�eement with othergnvernnierzml erzeities,privateJirrns and individua[s
ta provide ser��ice.s.
Cnnn�acted sei��ices include:Palire and Fire pratectinri tWnugh the Cnunr��aJ'Riverside,animal cnnnnl,health servires,
lega[services and landscape mainrenance.
Snurres:Riverside Cnwrry Slie�'s Dept_Califnrnia State Department nJ Fw�estry&Fire Pratection,
Ciry aJ Palm Desere,Condiel/n�lley Recreatinn&Pork Disnict,Burrtec�ste
210
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
Note:This section is not required by GASB No.44,however,City believes that statistical
information is beneficial to the reader.
On February 1,2012 the State of California dissolved the City of Palm Desert Redevelopment Agency
as part of the Statewide dissolution of all City Redevelopment Agencies,which in turn created
the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see note 19 and note 20.
211
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, _ , _ _ January 2020
212
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30,2020
$15,745,000
DESCRIPTION Tax Allocation
Revenue
Bond
Years 30
Bond Issue Date 03/26/03
Final Maturity Date 08/O1/33
Highest Interest Rate 5.00%
Bond Issuc Amount S 15,745,000
Outstanding Bond Amount S 15,745,000
Call Premium 1-2.00%
Bond Insurer MBIA
Reserve Requirement(1) 1,574,500
Reserve Balance(l) (I)
Called Bonds S -
Principle Due 20/21 -
Interest Due 20/21 769,006
Arbritage Yield Rate 4.9502%
Arbrita e-Amount Owed -
Arbritage Five Year Due Date: 03/26/23
Non-Housing Non-Housing
DESCRIPTION Tax Allocation Tax Allocation
Bond(Exempt)� Bond(Taxable)�
Years 13 24
Bond Issue Date O1/31/l7 O1/31/17
Final Maturity Date 10/O1/30 10/O1/41
Highest Interest Rate 5.000% 4.250%
Bond Issue Amount $ 52,390,000 $ 140,130,000
Outstanding Bond Amount $ 45,535,000 $ 122,855,000
Call Premium 0.00% 0.00%
Bond Insurcr BAM BAM
Reserve Requirement(]) 5,883,203 9,333,052
Reserve Balance(1) (1) (l)
Called Bonds $ - $ -
Priuciple Due 20/21 2,A75,000 A,325,000
Intcrest Due 20/21 2,204,A75 4,180,294
Arbritage Yield Rate 3.659% 3.659%
Arbrita e-Amount Owed - -
Arbritage Five Year Due Date: OL/31/22 O1/3 U22
Housing Housing
DESCRIPTION Tax Allocation Tax Allocation
Bond(Exempt)3 Bond(Taxable)4
Years 14 6
Bond Issue Date O l/31/17 O 1/31/17
Final Maturity Date 10/01/31 10/OU23
Hi>hest Interest Rate 5.000% 3.000%
Bond Issue Amount S 7,365,000 $ 45,815,000
Outstandin Bond Amount S 6,265,000 $ 23,805,000
Call Premium 0.00% 0.00%�
Bond Insurer BAM BAM
Reservc Rcquircment(1) 687,519 4,581,500
Reserve Balance(1) (1) (1)
Called Bonds S - $ -
Princi le Duc 20/2l 395,000 5,735,000
Interest Due 20/21 279,644 569,606
Arbritagc Yicld Rate 2.907% 2.907%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date: Ol/3 U22 O1/31/22
(I)A sureiy bond was issued by MBIA Insurance,I'uture reserve balance's will be zero.
I Rcfundcd PA L-4 tas cxcmpt portion of bonds($22.07YI,$19M,$24.945M,$623M,$1731M,$67.6M,$4.745M,$15.OSM,$L L02M,$15.695M,and$192M)
2 Refunded PA I-4 tuxable portion of bonds(522.07M,$19M,524.945M,$623M,$1731 M,$67.6M,$4.745M,$I S.OSM,$I 1.02M,$15.695M,and$192M)
3 Refunded Housing[ax exempt portion of bonds(12.1 M and$86.7 SSM)
4 Refunded Housing taxable portion of bonds Q 2.1 M and$86.I SSVI)
Source:City of Palm Desert aod Successor Agency to the Palm Dcscrt Rcdcvclopmcn[Agcncy
213
City of Palm Descr[
Historical Tax IncremenU
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Pro'ect Area No.1 FY 2010/ll FY 20ll/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
G-ossTaxlncrement �0.024,389 48,562,361 48,767,884 51,298,203 53,437,088 56,67Q029 58,222,677 59,842,SU 62,844,689 64,495,840
Less:
Housin Set-Aside* 1Q004,878 9,712,472 9,753,577 1Q259,641 1Q687,418 11,322,006 11,644,535 11,968,503 12,568,938 12,899,168
SB2557 517,900 61Q071 714,777 673,261 686,944 629,449 725,403 662,238 594,754 57Q820
G-oss Pass-Throu hs 19,677,610 18,843,301 18,642,892 2Q117,377 21,241,903 22,961,604 25,052,727 22,919,420 25,953,291 26,949,281
Net Tax Increment 19,81A,001 19,396,517 19,656,698 2Q253,925 2Q820,823 21,696,970 2QS00,012 24,292,356 23,727,706 24,076,571
RPTTFAmountDeposited n/a 29,92�559 26,848,203 25,090,381 26,53QR01 2Q696,424 25,737,004 19,923,194 20,337,658 21,672,933
Pro'ect Area No.2 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
GrossTaxlncrement 15,43�,043 14,335,941 13,700,701 13,556,184 1�,232,096 16,232,329 16,302,895 16,916,067 17,401,509 18,170,947
Less:
Housin SehAside* 3,087,009 2,867,18A 2,740,140 2,711,237 3,046,419 3,246,466 3,260,579 3,383,213 3,480,302 3,634,189
SB 2557 160,467 176,347 200,429 179,214 192,900 180,457 202,348 187,481 165,500 160,701
GrossPass-Throu hs �,A06,404 5,381,108 4,983,714 4,967,602 �,665,961 6,078,194 6,103,481 6,372,798 6,609,645 6,975,517
NetTaxlncrement fi,3Al,lfi3 5,911,29R 5,77fi,41R S,fi9R,132 fi,32fi,R16 fi,727,213 fi,73fi,487 fi,972,575 7,14fi3Ofi3 7,40Q540
RPTTFAmountDeposited n/a 7,503,009 7,568,241 7,017,531 5,441,721 5,547,427 5,887,814 5,516,674 5,629,776 6,106,095
Project Arca No.3 FY 2010/ll FY 20ll/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
G-oss Tax Tncrement 4294,063 3.847,543 3.575,242 3.76Q421 3.754,999 4.039,902 4.36Q574 4.364,606 4.487,719 4.653,982
I.ess:
HousingSel-Aside* 858.873 769.509 715.048 752.084 751.000 807.980 872.175 872.921 897.544 930.796
SR 2557 44.962 49.034 52.858 49.871 48.901 45.175 52.745 8.947 42.853 41.139
G-oss Pass-Throughs 1,983,494 1.671,676 1277,864 1.377,700 1.371,786 I.S7Q219 1.656,158 1.662,390 1.73Q228 1.873,552
Net Tax Increment 1,406,795 1,357,325 1,529,472 1,580,766 1,583,312 1,676,528 1,779,556 1,820,347 1,817,094 1,868,494
RPTTFAmountDeposited n/a 2,088,587 I,497,532 1,357,67R 1,237,930 1,29Q623 1,295,156 1,422,709 1,457,R77 1,563,906
Pro,ject Area Nu.4 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
Gross Tax Incrcment 12,073,042 11,342,081 11,153,422 11,941,A00 13,057,A91 13,889,272 14,287,533 14,685,301 15,251,204 15,776,294
Lcss:
HousingSehAside* 2,414,60A 2,268,416 2,230,6R4 2,388360 2,611,57A 2,777,A54 2,857,507 2,937,060 3,OSQ241 3,155,259
SB2557 125,648 143,002 164,046 156,AIS 166,634 154,976 l7R,Al2 162,715 145,017 139,433
GrossPass-Throu hs 6,744,173 6,730,420 7,530,OR9 7,901,A30 R,381,422 R,866,A04 9,433,947 9,943,062 10,454,725 R,434,713
Net Tax Increment 2,788,fi12 2,200,243 1,228,fiO3 1,494,792 l,R9R,257 2,089,637 1,817,267 1,fi42,464 1,fi01,222 4,04fi,R90
RPTTFAmountDeposited n/a 3,91Q755 4,064,105 3,675,440 3,077,966 2,443,507 2,61Q660 4,834,978 4,934,105 5,307,405
*For calculation purposes only-No requirement to deposit Housing Set Aside post Redevelopment DissoLution.
214
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December 16, 2020
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of
the City of Palm Desert, California (the City) for the year ended June 30, 2020. Professional standards
require that we provide you with information about our responsibilities under generally accepted auditing
standards, Government Auditing Standards and the Uniform Guidance, as well as certain information
related to the planned scope and timing of our audit. We have communicated such information in our
letter to you dated April 27, 2020. Professional standards also require that we communicate to you the
following information related to our audit.
Siqnificant Audit Findinqs
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in the notes to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during fiscal
year 2019-2020. We noted no transactions entered into by the City during the year for which there is a
lack of authoritative guidance or consensus. All significant transactions have been recognized in the
financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on managemenYs knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance
to the financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the City's financial statements
were:
ManagemenYs estimates of its net pension liability and net other post-employment
benefits liability based on actuarial valuation specialist assumptions. We evaluated the
key factors and assumptions used to develop the net pension liability and net other
post-employment benefits liability in determining that they are reasonable in relation to
the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. No
misstatements were found.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 16, 2020.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application
of an accounting principle to the City's financial statements or a determination of the type of auditor's
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the management discussion and analysis, budgetary
comparison schedule for the General Fund, major special revenue funds as listed in the table of contents,
schedule of changes in net pension liability and related ratios, schedule of plan contributions - Pension,
schedule of changes in net OPEB Liability and related ratios, and schedules of plan contributions —
OPEB, which are required supplementary information (RSI) that supplements the basic financial
statements. Our procedures consisted of inquiries of management regarding the methods of preparing
the information and comparing the information for consistency with managemenYs responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We did not audit the RSI and do not express an opinion or provide any assurance
on the RSI.
We were engaged to report on combining statements and individual nonmajor fund statements and
schedules, which accompany the financial statements but are not RSI. With respect to this supplementary
information, we made certain inquiries of management and evaluated the form, content, and methods of
preparing the information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial statements.
LS L��::
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We compared and reconciled the supplementary information to the underlying accounting records used to
prepare the financial statements or to the financial statements themselves.
We were not engaged to report on introductory or statistical section, which accompany the financial
statements but are not RSI. Such information has not been subjected to the auditing procedures applied
in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide
any assurance on it.
New Accountinq Standards
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective
for fiscal year 2019-2020 audit:
GASB Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance —
The following pronouncements have been postponed as a temporary relief to governments and
other stakeholders in light of the COVID-19 pandemic and the new effective date is reflected in
the following fiscal years.
GASB Statement No. 88, Certain Disclosure Related to Debt, including Direct Borrowing and
Direct P/acements.
The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the
following fiscal year audit and should be reviewed for proper implementation by management:
Fiscal year 2021
GASB Statement No. 84, Fiduciary Activities.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14
and 61.
Fiscal year 2022
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.
Restriction on Use
This information is intended solely for the use of City Council and management of City of Palm Desert
and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
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Brea, California
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STf1NDARDS
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of the City of Palm Desert, California (the City), as of and for the year
ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated December 16, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions,to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly,we do not express such an opinion.The results of our tests disclosed
no instances of noncompliance or other matters that are required to be reported under
Gouernment Auditing Standards.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing,and not to provide an opinion on the effectiveness of the City's internal control
or on compliance. This report is an integral part of an audit performed in accordance with
Gouernment Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
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Brea, California
December 16, 2020
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INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON
PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
To the Honorable Mayor and Members of the City Council
City of Palm Desert
Palm Desert, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet No. 6 (or other alternative computation) of the City of Palm Desert, California, for the year
ended June 30, 2020. These procedures, which were agreed to by the City of Palm Desert and the
League of California Cities (as presented in the publication entitled Agreed-Upon Procedures Applied to
the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed
solely to assist the City of Palm Desert in meeting the requirements of Section 1.5 of Article XIII-B of the
California Constitution. The City of Palm Desert's management is responsible for the Appropriations Limit
Worksheet No. 6 (or other alternative computation).
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these
procedures is solely the responsibility of those parties specified in this report. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations)
and compared the limit and annual adjustment factors included in those worksheets to the limit
and annual adjustment factors that were adopted by resolution of the City Council. We also
compared the population and inflation options included in the aforementioned worksheet to those
that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's
limit, by line D, ratio of change, and agreed the resulting amount to line E, this year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit
Worksheet No. 6 to the other worksheets described in No. 1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the
prior year.
Finding: No exceptions were noted as a result of our procedures.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Palm Desert, California
We were not engaged to and did not perform an audit, the objective of which would be the expression of
an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express
such an opinion. Had we performed additional procedures other matters might have come to our attention
that would have been reported to you. No procedures have been performed with respect to the
determination of the appropriations limit for the base year, as defined by the League publication entitled
Article XIIIB Appropriations Limitation Uniform Guidelines.
This report is intended solely for the use of the City of Palm Desert, California and should not be used by
those who have not agreed to the procedures and taken responsibility for the sufficiency of the
procedures for their purposes. However, this report is a matter of public record and its distribution is not
limited.
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Brea, California
May 18, 2020
CITY OF PALM DESERT
2019-2020
APPROPRIATIONS LIMIT CALCULATION
A. 2018-2019 APPROPRIATIONS LIMIT: $ 131,788,605
B. 2019-2020 CHANGE IN PER CAPITA
PERSONAL INCOME 3.85%
C. 2019-2020 CHANGE IN POPULATION: 1.17%
D. RATIO OF CHANGE (1.0385 X 1.017): X 1.05065045
E. 2019-2020 APPROPRIATIONS LIMIT: $ 138,463,757
($131,788,605 X 1.05065045)