HomeMy WebLinkAboutAudited Comprehensive Annual Financial Report (CAFR) FYE 06/30/2019STAFF REPORT
CITY OF PALM DESERT
PALM DESERT HOUSING AUTHORITY
FINANCE DEPARTMENT
MEETING DATE: February 13, 2020
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, 2019
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, 2019.
Strateqic Plan Obiective
Not applicable.
Committee Recommendation
The Audit, Investment and Finance Committee received the City of Palm Desert audited reports
at their February 11, 2020 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, 2019, 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, 2019, 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
Internal Controls over Financial Reporting and on compliance and other matters based on an
audit of Financial Statements performed in accordance with Government Auditina Standards.
The CAFR was submitted for the Certificate of Achievement 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
G \Finance\Jessika Peltz\Staff Reports\Audit Staff Reports 2019\SR - Council audit 2019 CAFR.docx
Staff Report
Receive and file CAFR for Fiscal Year ended June 30, 2019
February 13, 2020
Page 2 of 2
Program's requirements, as it has for the past 22 years.
For the City's General Fund, the actual ending revenues of $65.66 million were $0.35 million more
than the final budgeted revenues of $65.31 million. Sales and transient occupancy taxes continue
to be the top two revenue generators for the City totaling $38.69 million, or 58.92 percent of the
total General Fund actual revenues. The General Fund actual ending expenditures of $62.98
million were $2.02 million less than the final budget of $65.00 million.
Staff requests that the City Council receive and file the audited financial statements for the fiscal
year ended June 30, 2019.
Fiscal Analysis
There is no fiscal impact associated with this action.
LEGAL REVIEW
N/A
Robert W. Hargreaves
_City Attorney _
DEPT. REVIEW FINANCIAL ASSISTANT
REVIEW _ CITY MANAGER
et M. Moore
Director of Finance
City Manager Lauri Nlaian:
ATTACHMENTS
JLE:jp
net M. Moore
Director of Finance
N/A
Andy Firestine
Assistant City Manager
1. City of Palm Desert audited financial report for fiscal year ended
June 30, 2019. (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
Government Auditing Standards
4. Appropriations Limit Worksheet no. 6
G \Finance\Jessika Peltz\Staff Reports\Audit Staff Reports 2019\SR - Council audit 2019 CAFR docx
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December 20, 2019
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 units, each major fund, and the aggregate remaining fund information of
the City of Palm Desert, California (the City) for the year ended June 30, 2019. 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 December 20, 2019. Professional standards also require that we communicate to you
the following information related to our audit.
Significant Audit Findings
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 2018-2019. 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]
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 management's 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 estimate affecting the City's financial statements
was:
Management's estimates of its net pension liability and net other postemployment
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
postemployment 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. J primeGlobal
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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 20, 2019.
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 management discussion and analysis, budgetary comparison
schedule for the General Fund and 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 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 management's 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 the combining statements and individual fund statements, 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. We compared
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
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 Accounting Standards
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective
for fiscal year 2018-2019 audit:
GASB Statement No. 83, Certain Assets Retirement Obligations.
GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and
Direct Placements.
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 2019-2020
GASB Statement No. 84, Fiduciary Activities.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14
and 61.
Fiscal year 2020-2021
GASB Statement No. 87, Leases.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period.
Fiscal year 2021-2022
GASB Statement No. 91, Conduit Debt Obligations.
Restriction on Use
This information is intended solely for the use of Council and management of the 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 STANDARDS
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, 2019, 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 20, 2019.
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) to determine the 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 the
determination of financial statement amounts. 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 Government 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
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Brea, California
December 20, 2019
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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
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, 2019. 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 worksheets 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
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
April 29, 2019
CITY OF PALM DESERT
2018-2019
APPROPRIATIONS LIMIT CALCULATION
A. 2017-2018 APPROPRIATIONS LIMIT: $ 125,368,032
B. 2018-2019 CHANGE IN PER CAPITA
PERSONAL INCOME 3.67%
C. 2018-2019 CHANGE IN POPULATION: 1.40%
D. RATIO OF CHANGE (1.0367 X 1.0140): X 1.0512138
E. 2018-2019 APPROPRIATIONS LIMIT: $ 131,788,605
($125,368,032 X 1.0512138)
City of Palm Desert
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2019
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Palm Desert, California
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2019
Prepared 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
Jenny Weill
ACCOUNTING SPECIALIST
James Bounds
ACCOUNTING TECHNICIAN
Horacio Celaya
ACCOUNTING TECHNICIAN
Diana Leal
OFFICE SPECIALIST I
Jessika Peltz
SENIOR FINANCIAL ANALYST
Anthony Hernandez
ACCOUNTING SPECIALIST DEPUTY CITY TREASURER SENIOR MANAGEMENT ANALYST
Sharon Christiansen Thomas Metz Veronica Tapia
MANAGEMENT SPECIALIST II
Patty Leon
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CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
Ali irnhor
INTRODUCTORY SECTION
Letter of Transmittal .............
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...............................................................................................................1 i
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... ...... ........... ............ — ....................................................................
28
Statement of Net Position — Proprietary Funds... ........ ........ ...... — ........... ............. — .............. .....
29
Statement of Revenues, Expenses and Changes in Fund
Net Position — Proprietary Funds................................................................................................30
Statement of Cash Flows — Proprietary Funds...............................................................................31
Statement of Fiduciary Net Position — Fiduciary Funds..............................................................-32
Statement of Changes in Fiduciary Net Position — Fiduciary Funds... ...........................................33
Notes to Basic Financial Statements..............................................................................................35
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Plan — Agent Multiple -Employer Schedule of Changes
in Net Pension Liability and Related Ratios.............................................................................98
Miscellaneous Plan- Agent Multiple — Employer Schedule of Plan Contributions .........................99
Schedule of Changes in the Net OPEB Liability and Related Ratios...........................................100
Schedule of Contributions — OPEB..............................................................................................101
Budgetary Comparison Schedule by Department — General Fund..............................................102
Budgetary Comparison Schedule — Measure A...........................................................................104
Budgetary Comparison Schedule — Prop A Fire Tax...................................................................105
Budgetary Comparison Schedule —Housing Asset Fund.............................................................106
Budgetary Comparison Schedule — Housing Authority................................................................'107
Note to Required Supplementary Information..............................................................................108
SUPPLEMENTARY SCHEDULES
Combining Balance Sheet — Other Governmental Funds............................................................110
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances — Other Governmental Funds..............................................................................i11
Combining Balance Sheet — Other Special Revenue Funds.......................................................116
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances — Other Special Revenue Funds...................................................................122
Budgetary Comparison Schedules — Special Revenue Funds:
TrafficSafety..........................................................................................................................127
GasTax................................,.,........,...............................,...............................-----..................128
Housing Mitigation Fees................................................................................................129
Community Development Block Grant. .........................
ChildCare Program............................................................................................... .......__ 131
Public Safety Police Grants...................................................................................................132
NewConstruction Tax........ ........................................................................................... ...... - 133
PlannedDrainage..................................................................................................................134
Parks and Recreational Facilities...........................................................................................135
TrafficSignals........................................................................................................................136
Fire Facilities Restoration......................................................................................................137
Recycling. ..................................... .......138
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2419
TABLE OF CONTENTS
Page
Number
Energy Independence Loan...................................................................................................139
Air Quality Management..... ...... ........................................................................................ _ 140
AquaticCenter.......................................................................................................................141
CannabisCompliance............................................................................................................142
El Paseo Assessment District...............................................................................................143
Landscape and Lighting Districts No. 1-17............................................................................144
Former RDA Low Income Housing........................................................................................145
Combining Balance Sheet - Other Capital Projects Funds.........................................................148
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Other Capital Projects Funds. .................................................................... 152
Budgetary Comparison Schedules - Capital Project Funds:
CapitalProperties...................................................................................................................156
CapitalProjects Reserve........................................................................................................157
DrainageFacilities..................................................................................................................158
EconomicDevelopment.........................................................................................................159
Parks and Recreational Facilities...........................................................................................160
Artin Public Places................................................................................................................161
Sig n al ization...........................................................................................................................162
CapitalGolf.. .......... ....................................... ........ ............ .................................................
163
Buildings.-... ............... _ .... ............... ......... ................. ........ _ ........................................
164
C F D University Special Assessment District.........................................................................165
Balance Sheet -- Other Debt Service Fund..................................................................................168
Statement of Revenues, Expenditures and Changes in
Fund Balances - Other Debt Service Fund...........................................................................169
Budgetary Comparison Schedule - Debt Service Fund:
City Highland Undergrounding...............................................................................................170
Combining Statement of Net Position - Internal Service Funds..................................................172
Combining Statement of Revenues, Expenses and Changes
1n Fund Net Position - Internal Service Funds......................................................................173
Combining Statement of Cash Flows - Internal Service Funds...................................................174
Combining Statement of Assets and Liabilities - All Agency Funds............................................177
Combining Statement of Changes in Assets and
Liabilities - All Agency Funds................................................................................................178
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED DUNE 30, 2019
TABLE OF CONTENTS
STATISTICAL SECTION
Page
Number
Description of Statistical Section.........................................................................................................181
Financial Trends:
NetPosition by Component.........................................................................................................183
Changesin Net Position...............................................................................................................184
Fund Balances of Governmental Funds.......................................................................................187
Changes in Fund Balances of Governmental Funds....................................................................188
Graphs — Changes in Fund Balances of Governmental Funds....................................................189
Supplemental Historical General Fund Revenues.......................................................................190
Supplemental Graph — Historical General Fund Revenues.........................................................191
Supplemental Historical General Fund Expenditures...................................................................192
Supplemental Graph — Historical General Fund Expenditures....................................................193
Supplemental Historical General Revenue and Expenditures Per Capita
...................................195
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property..............................................196
Historical Net Assessed Taxable Values Citywide and
Graph —Assessed Valuation Growth........................................................................................197
Supplemental FY 2019 and 2018 Breakdown of Basic 1 % Property
Tax Rate Not In Redevelopment Project Area..........................................................................198
Property Tax Rates Direct and Overlapping Property Tax Rates................................................199
Principal Property Taxpayers.......................................................................................................200
Property Tax Levies and Collections ............................................... .......................--..............201
Supplemental Top 25 Sales Tax Generators and
Graph — Historical Sales Tax Trends..... ......... ................................................ ..----..............202
Debt Capacity:
Ratios of Outstanding Debt by Type.............................................. .......................... ................. ....203
Ratios of General Bonded Debt Outstanding...............................................................................204
Supplemental Special Assessment Information...........................................................................205
Direct and Overlapping Government Activities Debt....................................................................206
Legal Debt Margin Information....................................................................................................207
Pledged -Revenue Coverage... .................... ................................................................................ 208
Demographic and Economic Information:
Demographic and Economic Statistics.........................................................................................209
PrincipalEmployers... ........ ...........................................................................................................210
Supplemental Miscellaneous Statistics........................................................................................211
Operatina Information:
Full -Time Equivalent City Government Employees by Function/Program...................................212
Operating Indicators by Function/Program...................................................................................213
Capital Asset Statistics by Function/Program..............................................................................214
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page
Miimhar
SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION
Redevelopment Agency Project Areas Map. ........... _ .... _ ....... ..................................... .216
Tax Allocation Bond Issue Information.........................................................................................217
Historical Tax Increment — Redevelopment Property
Tax Trust Fund Summary ......................................................................................................218
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I I I Y Of P 0 [ M 0E5 ERf
73-510 FRED WARING ❑RIVE
PALM ❑ESERT, CALIFORNIA 922.60-2578
TEL: 760 346—o6r i
irnfo@cityofpakmdeserc.org
December 20, 2019
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, 2019.
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 refits 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, 2019 was
conducted by Lance Soil & 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, 2019 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, for the fiscal year ended June 30, 2019, 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.
Residents of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 20, 2019
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 dnd maintenance
Public art and community promotion
Planning, zoning, building and engineering
Housing and community development
Code compliance
Economic development and business advocacy
Legislative, city clerk, visitor's services, public
information, general administration, fiscal services,
human resources, and risk management
Building permitting, inspections and services
Public Enterprise Services
Golf course
Office complex
Internal service
Palm Desert Civic Center
Blended & Discrete Component Units
PD Housing Authority
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.
Residents of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 20, 2019
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 fiscal year 2018-2019 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.
IiCiI�-� x�hl►[�7r► I'1
The City comprises an area of approximately 26 square miles and, as of January 1, 2019, has a population of
53,625 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 prograiis; 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
Gardens on El Paseo, and El Paseo Village.
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
proximity to first-class hotel accommodations and fine
dining.
Desert Willow Golf 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.
Residents of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 20, 2019
The State of California Employment Development Department Labor Market Information Division reported that
the City of Palm Desert had an unemployment rate of 4.9% compared to Riverside County, which had a rate of
4.4%. The City's balanced foundation of tourism, culture, and education has strengthened the City's labor force.
LONG-TERM FINANCIAL PLANNING
In June 2019, the City Council approved a total of $22.14 million in funding for various capital improvement
projects for the fiscal year of 2019-2020. 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 Outstanding Financial Reporting
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 Tune 30, 2018. This was the 22nd 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.
AcknoMedements
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 Iife
and reputation for innovation and leadership.
Respectfully submitted,
Lauri Aylaian
City Manager
et M. Moore
Director of Finance
iv
G�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Palm Desert
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2018
Executive Director/CEO
V
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2019
City Council - Manager Form of Government
CITY COUNCIL
SUSAN MARIE WEBER
Mayor
GINA NESTANDE
Mayor Pro-Tempore
JAN C. HARNIK KATHLEEN KELLY
Council Member Council Member
CITY ADMINISTRATION
LAURI AYLAIAN
City Manager
City Attorney - Best, Best & Krieger, LLP
Director of Finance/City Treasurer
SABBY JONATHAN
Council Member
Robert W. Hargreaves
Janet M. Moore
SUCCESSOR AGENCY TO T'HE PALM DESERT REDEVELOPMENT AGENCY
LAURI AYLAIAN
Executive Director
VI
N
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LS iii■
!!+•
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, 2019, and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
J PrimeGlobal
LPL""
■i
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, 2019, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, 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
0 P E B liability and related ratios on pages 100 and 101 be presented to supplement the basic financial
statements. Such information. although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures d❑ 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 an 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.
:
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 20, 2019 an 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.
Brea, California
December 20, 2019
THIS PAGE INTENTIONALLY LEFT BLANK
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, 2019 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
$795.99 million (net position).
• The City's governmental activities net position increased $1.74 million, and the net position of the
business -type activities increased $0.94 million.
• During the year, the City's revenues were $101.84 million and expenses were $92.87 million in its
governmental activities, excluding transfers and special item, compared to fiscal year 2018, where
revenues were $88.89 million and expenses were $91.47 million.
• In the City's business -type activities, expenses were $1.24 million less than the $10.81 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 $0.36 million more than
its expenses.
• The City's governmental activities program revenues and general revenues increased by
$12.95 million, while program expenses increased $1.40 million.
• Business -type activities revenues increased $0.76 million, from $10.05 million to $10.81 million.
Expenses decreased from the $9.69 million to $9.57 million.
• The City kept its General Fund expenditures within spending limits by $2.02 million. The revenues
available for expenditures were over budget by $0.35 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.
61
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. Ail 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 a fee to 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. Same 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 -terra 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.
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 employeesretiree 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, 2019, the City's combined net position increased $2.68 million from
$793.31 million to $795.99 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.
TABLE 1
NET POSITION
(IN MILLIONS)
As of June 30, 2019 and 2018
Governmental
Business -Type
Activities
Activities
Total
2019
2018
2019
2018
2019
2018
Current and restricted assets
$
352.80 $
344.26
$
7.73
$ 6.62
$
360.53 $
350.88
Capital assets
429.73
438.18
70.67
70.60
500.40
508.78
TOTAL ASSETS
782.53
782.44
78.40
77.22
860.93
859.66
Deferred outflows of resources
$
10.75 $
12.62
$
-
$ -
$
10.75 $
12.62
Long-term liabilities
outstanding
43.60
48.49
1.60
1 A9
45.20
49.98
Other liabilities
27.42
24.88
1.14
1.01
28.56
25.89
TOTAL LIABILITIES
71.02
73.37
2.74
2.50
73.76
75.87
Deferred inflows of resources
$
1.93 $
3.10
$
-
$ -
$
1.93 $
3.10
Net position:
Net investment in capital
assets
429.73
438.18
69.07
69.11
498.80
507.29
Restricted
200.54
197.36
-
-
200.54
197.36
Unrestricted
90.06
83.05
6.59
5.61
96.65
88.66
TOTAL NET
POSITION
$
720.33 $
718.59
$
75.66
$ 74.72
$
795.99 $
793.31
1,200
1,000
800
600
400
0 200
0
Table 1 - Graph
Total Assets & Liabilities
2019 2018 2019 2018 2019 2018
Governmental Business -Type Total
Activities Activities
■ Total Assets
Total Liabilities
E-1
The City's governmental activities net position increased $1.74 million. The City's net position is made up
of three components: Net investment in capital assets; restricted net position; and unrestricted net position.
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 12.50 percent of the overall total net position.
Unrestricted net position increased $7.01 million from $83.05 million in 2018 to $90.06 million in 2019-.The
increase in unrestricted net position was the result of an increase in sales taxes and reduction in the City's
pension liability. The increase in sales tax of $3.18 million from last year is due in large part, to a delay in
tax distributions from the California Department of Fee and Tax Administration as well as better than
expected retail sales and one-time sales events. In the City's efforts to minimize the effects of the change
in discount rate by CalPERS, the City made $3.70 million in additional payments to CalPERS during the
last two years resulting in a reduction in the City's overall outstanding unfunded liability and an increase in
net position (see Note 11).
The increase of $3.18 million in restricted net position was due to restricted capital projects increasing by
$2.41 million from the prior year. During the year, capital projects were at their early stage of planning,
therefore, revenues exceed the expenses for street resurfacing, drainage improvements, and street
improvements. Restricted special projects increased by $0.77 million, mainly due to new revenue sources
for emergency service reimbursement and cannabis tax.
Investment in capital assets decreased $8.45 million. The decrease is attributed to current year depreciation
of $11.82 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
$1.78 million from $795.06 million in 2018 to $793.28 million in 2019. The decrease is mostly attributable
to the $1.87 million decrease in deferred outflows of resources. Deferred outflows from pensions decreased
$2.91 million (see Note 11d) and deferred outflows from other post -employment benefits (OP EB) increased
$1.04 million (see Note 15h). in addition to the decrease in deferred outflows of resources, the City
established an allowance of $6 million on part of the advances owed by the Successor Agency (see Note
21).
Total liabilities and deferred inflows combined decreased by $3.52 million from $76.47 in 2018 to
$72.95 million in 2019- As stated above, the City made additional payments to CalPERS that have resulted
in a decrease of $4.13 million in the City's pension liability from $38.97 million in 2018 to $34.84 million in
2019.
The net position of the business -type activities recognized an increase of $0.94 million, from $74.72 million
to $75.66 million. The main factor for the increase in net position was overall increase in gross revenues
which increased by $0.76 million from the previous year. During the 2018-19 fiscal year, Desert Willow
market recognized a 2 percent increase in total rounds played along with a 9 percent increase in loyalty
programs sold resulting in total increase in green fees of 5 percent.
Total liabilities increased $0.24 million from $2.50 million in 2018 to $2.74 million in 2019- The increase in
debt obligation for the new lease of golf cart fleet along with the GPS system (see Note 8) is the major
factor for the increase in total liabilities-
9
TABLE 2
CHANGES IN NET POSITION
(IN MLLIONS)
As of June 30, 2019 and 2018
Govemrnental
Business -Type
Activities
AcWities
Total
2019
2018
2019
2018
2019
2018
REVENUES:
Program Revenues:
Charges for services
$ 28.92
$ 24.25
$ 10.04 $
9-68
$ 38.96
$ 33.93
Operating grants and
contributions
10.43
8.56
-
-
10.43
B.56
Capital grants and
contributions
4.02
2.44
0.50
0.17
4.52
2.61
General Revenues:
Property taxes
11.91
11.51
-
-
11.91
11.51
Transient occupancy tax
17.48
17.30
17.48
17.30
Sales tax
21.43
18.25
21.43
18.25
Other taxes
3.08
3.09
-
-
3.08
3.09
investment earnings
3.17
1.90
0.18
0.07
3.35
1.97
Gain on sale of capital assets
-
0.02
_
-
-
0.02
Other revenues
1.40
1.57
0.09
0.13
1.49
110
TOTAL REVENUES
101.84
88.89
10.81
10 05
112.65
98.94
EXPENSES:
General government
23.25
18.47
-
-
23.25
18.47
Housing and redevelopment
9.07
9.61
-
9.07
9 61
Pubic safety
37.20
36.54
-
37.20
36.54
Parks, recreation and culture
8.28
8.24
-
8.28
8.24
Public works
14.84
18.35
-
14.84
18.35
Merest on long-term debt
0.23
0.26
-
-
0.23
0.26
Got Course -Desert 1Milow
-
-
8.70
8.76
8.70
8.76
Off iceConplex-Parkview
-
-
0.87
0.93
0.87
0.93
TOTAL EXPENSES
92.87
91.47
9.57
9.69
102.44
101.16
NCREASE (DECREASE) IN NET PCISnION
8EFORETRANSFERsasPEcwLMW
8.97
(2.58)
1.24
0.36
10.21
(2.22)
Transfers
0.30
0.30
(0.30)
(0.30)
-
Special kern
(7.53)
-
-
-
(7.53)
INCREASE (DECREASE) IN NET POSITION
1.74
(2.28)
0.94
0.06
2.68
(2.22)
BEGINNING NET POSrMN
718.59
720.87
74.72
74,66
793.31
795.53
@NaIVf' NET POSITION
$ 720.33
$ 718.59
$ 75.66 $
74.72
$ 795.99
$ 793.31
10
Table 2- Graph
Changes in Net Position
800 80
700
600
500
c
° 400
E 300
.N
m 200
0
❑ 100
70
60
50
40
30
20
10
2019 2018
2019 2018
Governmental Activities Business -Type Activities
Governmental Activities
Beginning Net
Position
� Total Revenues
--@- Ending Net
Position
d Total Expenses
Total revenue (excluding transfers) increased by $12.95 million from $88.89 million to $101.84 million.
Factors that contributed to the changes in revenues are as follows:
• In 2019, investment rates were higher than prior year, therefore, the City accounted for $3.17 million
in investment earnings compared to $1.90 million in 2018, an increase of $1.27 million.
■ The City's combined general property taxes and sales tax increased by $3.58 million from
$29.76 million in 2018 to $33.34 million in 2019. Increase in sales tax was due to a delay in tax
distributions from the California Department of Fee and Tax Administration as well as better than
expected retail sales and one-time sales events.
• Charges for services increased from $24.25 million in 2018 to $28.62 million in 2019. In 2019, the
City began collecting for emergency services and cannabis tax. These two new revenue sources
increase charges for services by $2.91 million. $2.12 million in emergency service and $0.79 million
in cannabis tax.
• Operating contributions and grants increased by $1.87 million. This was the result of an increase
in investment earnings allocated to those functionslprograms.
• Capital contribution and grants increased from $2.44 million to $4.02 million, an increase of
$1.58 million.
• Transient occupancy tax increase from $17.30 million in 2018 to $17.48 million in 2019, an increase
of $0.18 million
Total expenses increased from $91.47 million to $92.87 million, a 1.53 percent increase. The primary
reason for the increase was in the general government function that increased $4.78 million. Additional
factors in the change in amount of expenses for the year included, public works decreased $3.51 million.
Public safety increased $0.66 million attributed to the increase in fire protection services from $13.50 million
to $13.96 million. Additionally, various City funds established an allowance that totaled $7.53 million for
advances and interest owed by the Successor Agency (see Note 21).
11
The following schedule represents the net cost of providing services:
General government
Housing and redevelopment
Public safety
Parks, recreation and culture
Public works
Interest on long term debt
Tota I
2019
Governmental Activities
Net(Expense)Revenue
8% 1%
G O/
38%
Business -type Activities
Governmental Activities
Net (Expense) Revenue
(In Millions)
2019
($18.51)
(0.69)
(22.38)
(4.20)
(3.50)
(0-23)
($49-51)
2018
Governmental Activities
Net(Expense)Revenue
18%
a%
25%
44%
2018
($13-82)
(1.96)
(25.62)
(4.97)
(9,59)
(0-26)
($56-22)
General government
■ Housing and
redevelopment
■ Public safety
■ Parks, recreation &
culture
■ Public works
a Interest on long
term debt
In the business -type activities, total revenues increased by 7-5 percent from $10.05 million to $10-81 million,
a $0.76 million increase. The main factors for the increase were related to an increase in golf rounds played
during the fiscal year from 90,332 to 92,169, plus an increase in the safes of the loyalty programs resulting
in increased ancillary revenue- Total green fees and ancillary revenue were $0.33 million more than the
previous year- Desert Willow Golf Resort management continued to utilize a strategic pricing structure,
which allowed the golf resort to retain the course utilization, which optimized the green fee revenue during
periods that were traditionally under-utilized and sold at a discount. The overall rounds mix and play
remained consistent with the previous years -
The Parkview Office Complex revenues increased slightly. The rental market remained soft during the
fiscal year-, the tenant mix remained unchanged.
Operating expenses for business -type activities decreased by $0.12 million from $9.69 million to
$9.57 million. The decrease is recognized from the Desert Willow Golf Resort costs which decreased their
overall costs by $62,702 with the remaining decrease recognized by Parkview depreciation costs which
were $76,079 less than the prior year- Both Desert Willow and the City continued to implement effective
and efficient methods to control casts without impacting service-
12
THE CITY'S FUNDS
On page 22, the governmental funds balance sheet is shown. The combined fund balance of
$306.50 million increased 2.19 percent from $299.93 million. This total includes the General Fund balance
of $93.04 million, which increased by $2.67 million from the prior year. The City's General Fund balance
has a nonspendable balance of $10.56 million, committed balance of $63.20 million, assigned balance of
$15.96 million, and $3.32 million of unassigned fund balance. The change in the General Fund's balance
was due to growth in sales tax, transient occupancy tax and investment earnings. Other major fund balance
changes are noted below:
• The Prop A Fire Tax Special Revenue Fund: The fund balance increased $0.60 million. The City
transferred $2.30 million to cover future shortage.
■ The Housing Asset Fund: The fund balance had a decrease of $0.46 million. The decrease was
the result of establishing an allowance of $1.20 million for advances owed by the Successor Agency
(see Note 21).
• Measure A Special Revenue Fund the fund balance increased from $21.97 million to
$25.12 million. Projects budgeted at $28.11 million are at their early stage which resulted in non -
spending of available funds.
• Housing Authority Fund- This fund had a minor decrease of $0.04 million from $19.98 million to
$19.94 million.
■ Capital Properties Fund: The fund balance increased $0.32 million from $68.75 million to
$69.07 million. The increase was due to the investment earnings exceeding capital project
expenditures.
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 $65.66 million were $0.35 million more than the
final budgeted revenues of $65.31 million. Sales and transient occupancy taxes continue to be the top two
revenue generators for the City, totaling $38.69 million or 58.92 percent of the total General Fund actual
revenues.
The General Fund actual ending expenditures of $62.98 million were $2.02 million less than the final budget
of $65 million. There were changes in the original budget compared to the final budget during the year. The
original expenditure budget was $58.01 million compared to the final budget of $65 million, a
$6.99 million increase. During the year, the following represent the major change between original budget
and final budget; $2 million was appropriated to reduce the City's pension liability, $2.67 million was
appropriated for land acquisition, and $1 million appropriated to reduce the City's OPES liability.
13
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2019, the City had $500.40 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
$8.38 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, 2019 and 2018
Land
Const ruction-in-prog ress
Buildings and improvements
other than buildings
Machinery and equipment
Infrastructure & right-of-way
TOTALS
700
600
N
❑ 500
E 400
C
300
n
c 200
in
100
Governmental Business -Type
Activities Activities
2019 2018 2019 2018
$ 81.96 $ 79.29 $ 53.31 $ 53.31
2.15 2.51 - -
94.47 99.92 15.32
2.57 2.70 2.04
248.58 253.76 -
$ 429.73 $ 438.18 $ 70.67
Table 3 - Graph
Capital Assets at Year -End
(Net of Depreciation in Millions)
2019 2018 2019 2018
Governmental Activities Business -Type Activities
15.67
1.62
$ 70.60
■ Land
Total
2019
2018
$ 135.27 $
132.60
2.15
2.51
109.79
115.59
4.61
4.32
248.58
253.76
$ 500.40 $ 508.78
■ Construction -in -Progress
■ Buildings & Improvements other than
buildings
■ Equipment
■ Infrastructure & right-of-way
■ Totals
14
This year's major additions included (in millions):
Street improvements $ 0.13
Park and recreation improvements 0.39
Equipment and software purchases 0.66
Land acquisitions 2.67
3.85
The City's fiscal year 2020 adopted capital budget calls for an additional $22.14 million to be spent, plus
continuing capital projects of $66.15 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 orfunds 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 $43.60 million in bonds. claims, compensated absences,
OPEB liability and pension liability versus $48.49 million last year, a decrease of $4.89 million as shown in
Table 4. The major decrease was the City's pension liability that went from $38.97 million to $34.84 million,
which was the result of additional payments made during the year. In addition, the City's OPEB liability
decreased from $4.12 million to $3.48 million.
TABLE 4
OUTSTANDING DEBT AT YEAR-END
(IN MILLIONS)
For the years ended June 30, 2019 and 2018
Governmental
Business -Type
Activities
Activities
Tota 1
2019
2018
2019 2018
2019
2018
Compensated absences payable
$ 2.63 $
2.39
- -
$ 2.63 $
2.39
Capital leases
-
-
1.60 1.49
1.60
1.49
Claims and judgements payable
0.58
0.36
- -
0.58
0.36
Special assessments debt with
govern mentcommitment
1.31
1.36
- -
1.31
1.36
Lim ited Obligation Improvement
bonds
0.76
1.29
- -
0.76
1.29
OPEB liability
3.48
4.12
- -
3.48
4.12
Pension liability
34.84
38.97
- -
34.84
38.97
TOTALS
$ 43.60 $
48.49
$ 1.60 $ 1.49
$ 45.20 $
49.98
15
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.
The City's business -type activities debt increased $0.11 million from $1.49 million to $1.60 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 increase in the City's business -type activities debt was directly related to entering
a lease for new golf carts and GPS equipment in the amount of $0.74 million. 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 (Vote 8 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
In preparing the budget for fiscal year 2020, management focused three core principles. 1) maintain the
level of service expected by residents, businesses. and visitors; 2) review standards of infrastructure
maintenance and operation and adjust standards to provide quality City facilities including parks, roads and
building in line with budget considerations: and 3) invest in infrastructure and technology to address
deferred maintenance and outdated hardwarelsoftware that resulted from necessary cost-cutting measures
in previous years. The following economic factors were considered by management:
Goals of the Strategic Plan as top priority.
Increase in healthcare and retirement costs.
Increase in the cost for police and fire protection services.
The 2020 budget is a reflection of the City's commitment to the residents of Palm Desert. The City's
conservative approach has provided for a consistently high level of services. The City has made a
commitment to allocate resources for public safety. cultural/social programs, and necessary infrastructure
improvements. Copies of the City's 2019-2020 Financial Plan can be obtained by contacting the City's
Finance Department or by visiting the City's website at www.citvofr)almdesert.ora-
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 to show the City's accountability for the money it receives.
If you have questions about this report or need additional financial information, please contact the Finance
Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260-2578. or
(760) 346-0611.
ill
CITY OF PALM DESERT
STATEMENT OF NET POSITION
JUNE 30, 2019
Component
Primary Government
Unit
Palm Desert
Recreational
Governmental
Business -Type
Facilities
Activities
Activities
Total
Corporation
ASSETS:
Cash and investments
$ 181,419,170
$ 8.643.249
$ 190,062.419
$ 268.248
Receivables-
Accounts
3.006.528
147,719
3,154,247
6,038
Notes
1,310,000
1,310.000
-
Accrued interest
7,048,239
7.048.239
Allowance for interest on Successor Agency
(1,530,000)
(1,530,000)
Loans
9,123,993
-
9.123.993
internal balances
2,000.000
(2,000,000)
-
Prepaid costs
1,239.725
60,427
1,300,152
14,247
Deposits
15,429,953
-
15,429,953
-
Due from other governments
6.131.532
6.131,532
-
Inventories
5,105
190.257
195.362
44,812
Property held for resale
61,516
-
61,516
-
Due from component unit
228.000
692.718
920.718
Restricted assets:
Cash with fiscal agent
110,038,067
-
110,038,067
Advances to Successor Agency
23,285,750
23.285,750
Allowance on Advances to Successor Agency
(6,000,000)
-
(6,000,000)
Capital assets. not being depreciated
205,206,475
53,304,965
258,511,440
Capital assets, net of depreciation
224,523,074
17,361,163
241.884.237
-
TOTAL ASSETS
782,527,127
78,400,498
860,927,625
333,345
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows from pensions
8.496.320
-
8,496,320
-
❑eferred outflows from OPEB
2,255.528
2,255,528
Total Deferred Outflows
of Resources
10,761,848
-
10,751,848
-
LIABILITIES:
Accounts payable
10.490.185
809,769
11.299.954
54,554
Accrued liabilities
391,117
63,871
454,988
15,543
Accrued interest
71,417
-
71.417
Due to primary government
-
-
-
920.718
Unearned revenue
15,773,859
246.014
16,019,873
79,873
Deposits payable
697.784
24,465
722.249
-
Long-term liabilities:
Compensated absences due within one year
300,000
-
300.000
Capital leases due within one year
-
450,382
450.382
Long-term debt due within one year
120.000
-
120.000
Claims and judgements due within one year
584,439
-
584,439
Compensated absences due in more than one year
2,328.215
-
2,328,215
Capital leases due in more than one year
-
1,145,012
1.145.012
Long-term debt due in more than one year
1,951,000
-
1,951,000
Net OPEB liability
3.478,672
3,478,672
Net pension liability
34,837.580
-
34,837,580
-
TOTAL LIABILITIES
71,024,268
2,739,513
73,763,781
1,070,688
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows from pensions
1,931,619
-
1,931,619
-
Total Deferred Inflows
of Resources
1,931,619
1,931,619
NET POSITION:
Net investment in capital assets
429.729.549
69,070,734
498.800.283
Restricted for.
Special projects
88,175,522
88.175,522
-
Capital projects
112,350,711
-
112.360,711
-
Unrestricted (deficit)
90,057,306
6.590.251
96,647,557
(737,343)
TOTAL NET POSITION
$ 720,323,088
$ 75,660,985
$ 795,984.073
$ (737,343)
See Notes to Financial Statements
17
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2019
Program Revenues
Operating
Capital
Charges for Contributions
Contributions
FunctionslPrograms
Expenses
Services and Grants
and Grants
Primary Government:
Governmental activities:
General government
$ 23.252.576
$ 1645,724 $ 616-836
$ 1.483,375
Housing and redevelopment
9,067.858
8-180,354 -
196.259
Public safety
37,195,732
14,503,741 265.755
45,308
Parks, recreation and culture
8.284,914
829,557 2,633,976
622.660
Public works
14.536,332
2,762,045 6,909,830
1,668,591
Interest on long-term debt
231,228
- -
-
Total governmental activities
92,868,640
28,921,421 10,426,397
4,016,193
Business -type activities
Desert Willow Golf Course
8,700,514
8.743.654 -
504.217
Parkview Office Complex
874,753
1.298,066
-
Total Business -Type Activities
9,575,267
10,041,720 -
504,217
Total Primary Government
$ 102,443,907
$ 38,963,141 $ 10,426,397
$ 4,520,410
Component Unit:
Palm Desert Recreational Facilities Corp.
$ 2,769,750
$ 2,869,768 $ -
$ -
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
Special Item (Note 21)
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
See Notes to Financial Statements 18
Net (Expenses) Revenues and Chanqes in Net Position
Component
Primary Government
Unit
Palm Desert
Recreational
Governmental
Business -Type
Facilities
Activities
Activities
Total
Corporation
$ (18,506:641)
$ - $
(18,506,641)
$ -
(691,245)
-
(691,245}
-
(22,380,928)
-
(22,380,928)
(4,198, 721)
(4,198:721)
(3.495.666)
(3,495, 866)
-
(231,228)
(231,228)
(49,504,629)
-
(49,504,629)
-
547,357
547,357
-
423,313
423.313
-
-
970,670
970,670
-
(49,504,629)
970,670
(48,533,959)
-
100,018
11,905,039
-
11,905,039 -
17, 476, 636
17,476, 636
21,434,387
-
21,434,387
3,078,855
-
3,078,855
3,170.693
181,310
3.352.003
1,396,514
87,365
1,483,879
7,452
-
7,452
(7,530,000)
(7,530,000)
300,000
(300,000)
- -
51,239,576
(31,3251
51,208,251 -
1,734,947
939.345
2,674,292 100,018
718,588,141
74,721,640
793,309,781 (837,361)
$ 720,323,080
$ 75,660,985 $
795,984,073 $ (737,343)
See Notes to Financial Statements 19
THIS PAGE INTENTIONALLY LEFT BLANK
20
FUND FINANCIAL STATEMENTS
21
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019
Special Revenue Funds
Prop A Fire
Housing
General
Measure A
Tax
Asset Fund
ASSETS:
Pooled cash and investments
S
84.621.229
$
24.689,190
$
2.646.171
5
684,299
Receivables:
Accounts
1,932,214
-
372,545
-
Assessments
-
-
-
Notes
1,310.000
-
Interest
2,872,324
-
1,201.365
Allowance for interest on Successor Agency
(118.524)
(306,000)
Loans
14,978
6,419,855
Prepaid costs
1.021.418
-
480
Deposits
-
15.429,953
-
-
❑ue from other governments
4.517.893
543,124
599,348
-
Due from other funds
3.344.000
-
-
3.331.000
Inventories
-
-
-
Property held for resale
-
-
61,516
Due from component unit
228.000
-
Restricted assets:
Cash and investments with fiscal agent
-
35,723,639
Advances to Successor Agency
9,236,000
630.750
Allowance for Advances to Successor Agency
(581.000)
-
-
-
TOTAL ASSETS
$
108,398,532
$
40,662,267
$
3,618,064
$
47,746,904
Liabilities, Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable
$
8,520,176
$
107.626
$
1,116,583
$
7.194
Accrued liabilities
222,786
-
-
-
Unearned revenues
3,268
15.429.953
-
Deposits payable
-
_
_
Due to other funds
1.731.000
-
-
-
TOTAL LIABILITIES
10,477,230
15,537,579
1,116,583
7,194
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
4.878,232
-
-
881.504
4,878,232
-
881,504
FUND BALANCES:
Nonspendable
10,559,396
-
-
480
Restricted
-
25.124,688
2,501,481
46.857.726
Committed
63,197,223
-
-
-
Assigned
15,9154,130
-
Unassigned
3,322.321
-
-
-
Total Fund Balances
93,043,070
25,124,688
2,501,481
46,858,206
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
108,398,532
$
40,662,267
$
3,618,064
$
47,746,904
See Notes to Financial Statements 22
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019
Special
Revenue
Capital
Funds
Projects Funds
Other
Total
Housing
Capital
Governmental
Governmental
Authority
Properties
Funds
Funds
ASSETS:
Pooled cash and investments
$
17,284,042
$
19,338
$ 40,059,961
$ 170.004,230
Receivables'
Accounts
1932
-
697,837
3,006.528
Assessments
-
1.172.053
1.172,053
Notes
-
-
-
1,310.000
Interest
5
110,535
2,864,010
7,046239
Allowance for interest on Successor Agency
-
-
(1,105,476)
(1,530,000)
Loans
-
-
2,689,160
9,123,993
Prepaid costs
188,076
-
4,633
1,214,607
Deposits
-
-
-
15.429.953
Due from other governments
-
446,167
6,106532
Due from other funds
-
500,000
7,175,000
Inventories
-
5,105
5,105
Property held for resale
-
-
61,516
Due from component unit
-
-
-
228,000
Restricted assets'
Cash and investments with fiscal agent
3,277,282
68,991,286
2,045,860
110,038,067
Advances to Successor Agency
-
-
13,419,000
23,285,750
Allowance for Advances to Successor Agency
-
-
(5,419.000)
(6,000.000)
TOTAL ASSETS
$
20,753,337
$
69,121,159
$ 57,379,310
$ 347,679,573
Liabilities, Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable
$
115.394
$
50,420
$ 558,452
$ 10,475,845
Accrued liabilities
161,434
-
6,897
391,117
Unearned revenues
5,984
-
334,654
15,773.859
Deposits payable
530,763
-
167,021
697,784
Due to other funds
-
-
3,444,000
5,175.000
TOTAL LIABILITIES
813,575
50,420
4,511,024
32,513,605
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
-
-
2,903,317
8,663,053
-
-
2,903,317
8,663,053
FUND BALANCES:
Nonspendable
188,076
-
4,633
10,752.585
Restricted
7,876,198
69.070.739
24,349,901
175,780,733
Committed
11,875,488
-
4,372,164
79,444,875
Assigned
-
21,238,271
37,202,401
Unassigned
-
-
-
3.322.321
Total Fund Balances
19.939,762
69,070,739
49,964,969
306,502,915
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$
20,753,337
$
69,121,159
$ 57,379.310
$ 347,679,573
See Notes to Financial Statements 23
rN:1li11=1ZIIIs] ►1►4wa4=1ar-lW►iIL4
24
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
Total fund balance for governmental funds
$ 306.502,915
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.
427,782,456
Deferred outflows related to pension and OPEB related items are not included in the
governmental fund activity.
Pension
Contributions made after the measurement date
$ 5,963,737
Changes in assumptions
2,455,907
Net difference between projected and actual earning on plan investments
76,676 8,496,32D
OPEB
Contributions made after the measurement date
2,255,528
Deferred inflows related to pension and OPEB related items are not included in the
governmental fund activity:
Pension
Changes in assumptions
(765,805)
Differences between expected and actual experiences
(1,165,814) (1,931,619)
Long-term debt, claims and judgements, net OPEB, and net pension liability are not
the governmental fund activity'
Bonds
(2,071.000)
Claims and judgments
(584,439)
Net OPEB liability
(3,478,672)
Net pension liability
(34,837,580) (40,971,691)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due.
(71,417)
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.
7.491,000
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 he added to the Statement of Net Position.
10,769,596
Net Position of Governmental Activities $ 720,323,088
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, 2019
Special Revenue Funds
Prop A Fire
Housing Asset
General
Measure A
Tax
Fund
REVENUES:
Taxes
$ 56,642,570
$ 2,928.433
$ 6,036,130
$
Special assessments collected
-
-
2,730,402
Licenses and permits
1,204,652
-
-
_
Intergovernmental revenues
1,565,278
400,637
1,151,283
-
Rental income
215.864
-
-
_
Charges for services
1,88D,072
-
2,121,193
-
Investment earnings
2,672,643
650.593
36,209
908,527
Fines and forfeitures
257,205
-
-
_
Miscellaneous
273,436
-
187,673
30,285
TOTAL REVENUES
64,721,710
3,979,663
12,262,890
938,812
EXPENDITURES:
Current:
General government
22,649,196
-
_
_
Public safety
22,803.115
-
13,945,153
-
Parks, recreation and culture
3,915,708
-
_
_
Publicworks
5,585,332
824,994
_
Housing and redevelopment
-
-
195,902
Capital outlay
2,946,581
11,323
-
Debt service:
Principal retirement
_
Interest and fiscal charges
_
-
-
TOTAL EXPENDITURES
57,900,932
824,994
13,956,476
195,902
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
6,820,778
3,154.669
(1,693,586)
742.910
OTHER FINANCING SOURCES (USES):
Transfers in
937.202
-
2,300,000
-
Transfers out
(4,620,658)
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
(3,683,456)
-
2,300,000
SPECIAL ITEM (NOTE 21 )
(464,800)
-
-
(1,200,000)
NET CHANGE IN FUND BALANCES
2,672,522
3.154,669
606,414
(457,090)
FUND BALANCES - BEGINNING OF YEAR
90,370,548
21,970,019
1,895,067
47,315,296
FUND BALANCES - END OF YEAR
$ 93,043,070
$ 25,124,688
$ 2,501,481
$ 46,858,206
See Notes to Financial Statements 26
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2019
Special
Revenue
Capital
Funds
Projects Funds
Other
Total
Housing
Capital
Governmental
Governmental
Authority
Properties
Funds
Funds
REVENUES:
Taxes
$
$
$ 1,495,052
$ 67,102,185
Special assessments collected
-
1,217755
3,948,157
Licenses and permits
212,177
1,416,829
Intergovernmental revenues
156,385
2,920,569
6,194,152
Rental income
6,684,062
-
6,899.916
Charges for services
-
-
1,222,020
5,223,285
Investment earnings
422,030
1,267,229
1,208,866
7,166,097
Fines and forfeitures
-
-
6,229
273,434
Miscellaneous
-
2,401,546
2,892,940
TOTAL REVENUES
7,262,477
1,267,229
10,684,214
101,116,995
EXPENDITURES.
Current
General government
-
2,000
1.618,350
24.269,546
Public safety
-
153,015
36.901,283
Parks, recreation and culture
-
2,581.683
6.497,391
Public works
-
912,833
1,404,195
8,728.354
Housing and redevelopment
6,801,108
-
507,109
7,504,119
Capital outlay
20,912
36,405
381,290
3,396,511
Debt service:
Principal retirement
-
-
587,000
587,000
Interest and fiscal charges
-
-
244.050
244.050
TOTAL EXPENDITURES
6,822,020
951,238
7,476,692
88,128,254
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
44G,457
315,991
3.207,522
12,988,741
OTHER FINANCING SOURCES (USES):
Transfers in
2,082,246
5,319,448
Transfers out
(478,698)
(637,202)
(5,736,558)
TOTAL OTHER FINANCING
SOURCES (USES)
(478,698)
1,445,044
(417.110)
SPECIAL ITEM (NOTE 21)
-
(4,335,200)
(6,000,000)
NET CHANGE IN FUND BALANCES
(38,241)
315,991
317,366
6,571.631
FUND BALANCES - BEGINNING OF YEAR
19,978.D03
68,754.748
49,647,603
299,931,284
FUND BALANCES - END OF YEAR
$ 19,939,762
$ 69,070,739
$ 49,964,969
$ 306,502,915
See Notes to Financial Statements 27
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, 2019
Net change in fund balances - total governmental funds $ 6.571,631
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
$ 3,396,511
Gain!(Ioss) on sale and disposal of capital assets
(294,866)
Depreciation
(11.348,761) (8,247A 16)
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
587,000
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
12,822
Net change in claims and judgments for the current period
(224,202) (211,380)
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
2,336.946
OPEB expense
1,729.024 4.065.970
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.
542,861
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.
(44,019)
Special item (Nate 21)
(1,530,000)
Change in Net Position of Governmental Activities
$ 1,734,947
See Notes to Financial Statements 28
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
ASSETS:
CURRENT ASSETS:
Cash and investments
Receivables:
Accounts
Prepaid costs
Due from other governments
Inventories
❑ue from component unit (PDRFC)
TOTAL CURRENT ASSETS
CAPITAL ASSETS:
Nondepreciable
Depreciable, net
CAPITAL ASSETS, NET
TOTAL ASSETS
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Compensated absences
Capital leases
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES:
Compensated absences
Capital leases
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflows
of Resources, and Net Position
Business -Type Activities -
Enterprise Funds
Major Fund Other Fund
Parkview
Desert Willow Office
Golf Course Complex
Governmental
Activities -
Total Internal Service
Enterprise Funds Funds
$ 3,327,774 $ 5.315,475 5
64,069 83,650
60,427 -
190,257
692,718 -
4,336,245 5,399,125
8,643.249 $ 11,414,940
147,719 -
60,427 25,118
- 25,000
190,257 -
692,718
9,734,370 11,465,058
53,304,965
-
53,3D4,965
32,414
11,078.701
5,282.462
17,361,163
1.914,679
64,383,666
6,282,462
70,666,128
1,947,D93
$ 68,718,911
$ 11,681,587
$ 80,400,498
$ 13,412,151
S 778,160
S 31.609
$ 809,769
$ 14,340
63,871
-
63,871
-
237,104
8,910
246.014
24,465
24,465
2,000,000
-
2,000.000
-
-
300,000
450.382
-
450,382
-
3,529,517
64,984
3,594,501
314,340
-
-
2,328, 215
1,145,012
1,145,012
-
1,145,012
-
1,145,012
2,328,215
4,674,529
64,984
4,739,513
2,642,555
62.788.272
6,282,462
69,07D,734
1,947,093
1,256,110
5,334,141
6.590, 251
8,822,503
64,044,382
11,616,603
75,660,985
10,769,596
$ 68,718,911
$ 11,681,587
$ 00,400,498
S 13,412,151
See Notes to Financial Statements 29
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Business -Type Activities - Enterprise Funds
Major Fund
Other Fund
Governmental
Parkview
Activities -
Desert Willow
Office
Total
Internal Service
Golf Course
Complex
Enterprise Funds
Funds
OPERATING REVENUES:
Fees and rentals
$ 7,432,817
$ 1,298.066
$ 8.730,883
$
Miscellaneous
87,242
123
87,365
-
Merchandise sales
1,310,837
-
1.310,837
TOTAL OPERATING REVENUES
8.830,896
1,2981189
10,129,085
-
OPERATING EXPENSES:
General and administrative
2,333,512
201.303
2.534,815
272,430
Cost of merchandise
522,103
-
522.103
-
Maintenance and operations
4.654,834
385,727
5,041,561
349,788
Depreciation and amortization
1,057.971
286,723
1,344,694
469,027
TOTAL OPERATING EXPENSES
8.568.420
874,753
9,443,173
1,091,245
OPERATING INCOME (LOSS)
262,476
423,436
685,912
(11091,245)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
-
-
25,000
Interest revenue
33,429
147,881
181,310
297,664
Interest expense
(132,094)
-
(132,094)
-
Gain on disposal of capital assets
-
-
7,452
TOTAL NONOPERATING
REVENUES (EXPENSES)
(98.665)
147,881
49,216
330,116
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS & TRANSFERS
163.811
571,317
735,128
(761,129)
CAPITAL CONTRIBUTIONS
504,217
-
504,217
-
TRANSFERS IN
-
717,110
TRANSFERS OUT
(300,000)
(300,000)
-
CHANGE IN NET POSITION
568,028
271,317
939,345
(44,019)
NET POSITION - BEGINNING OF YEAR
63.376.354
11.345,286
74,721,640
10.813.615
NET POSITION - END OF YEAR
S 64.044,382
$ 11,616,603
$ 75,660,986
$ 10,769,596
Set: Notes to Financial Statements 30
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES'
Receipts From customers
Payments to suppliers
Cash paid to employees for services
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other Funds
Cash paid to other funds
NET CASH PROVIDED ;USED) BY
NONCAPiTAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets
Principal paid on leases
Interest paid on leases
Proceeds from sales of capital assets
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
Net Cash Provided (Used) by
Investing Activities
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -
END OF YEAR
RECONCILIATION OF OPERATING INCOME
{LOSS) TO NET CASH PROVIDED {USED) BY
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating
income (lass) to net cash provided
(used) by operating activities:
Depreciation and amortization
Changes in assets and liabilities:
(Increase) decrease in receivables, net
(Increase) decrease in prepaid costs
(Increase) decrease in due from other governments
(I nrrea se) decrease in in ve ntones
(Increase) decrease in due From component unit
Increase (decrease) in accounts payable and accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
Increase (decrease) in compensated absences
Total Adjustments
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
NONCASH ITEMS:
Capital Contributions
Capital Lease
See Notes to Financial Statements
31
Major
Fund
Other Fund
Governmental
Total
Activities -
Desert Willow
Parkview
Enterprise
Internal Service
Golf Course
Office Complex
Funds
Funds
5 8.838.625
S 1.265.392
$ 10,104.017
$
(7,435,0181
(589.D39)
(8.024.057)
(398.047)
-
-
-
(30.987)
1,403,607
676,353
2,079,960
(429,034)
717,110
(300,000) (300,000) -
(300,000)
(300.000)
717,110
(143.923)
(18,606)
(162,529)
(269,179)
(536.885)
(636,885)
-
(132,094)
(132.094)
-
40, 009
(912,902)
(18,606)
(931,608)
(229,170)
33,429
147 881
181.310
297.664
33,429
147,881
181,310
297,664
524,134
505,628
1,029,762
356,670
2.803.640
4.809.847
7,513,487
11.058.370
$ 3,327.774 $
5,315,475
$ 8,643,249
3 11,414,940
$ 262,476 $ 423.436 $ 685,912 $ (1,091.245)
1,057,971
286.723
1,344.694
469.027
(15.950)
(32.797)
(48,747)
-
33,845
174
34,019
11,831
9,484
-
9.484
-
(83,771)
-
(83,771)
32,102
2.181
34,283
(35.090)
-
(3,354)
(3,364)
107.450
107,450
-
-
-
241.443
1,141,131
262,917
1,394,048
662,211
$ 1,403,607 S
676,353
$ 2,079,960 $
(429,034)
S 504,217 $
-
S 504.217 5
738,949
738 949
CITY OF PALM DESERT
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2019
Assets:
Pooled cash and investments
Receivables:
Assessments
Accrued interest
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Capital assets:
Capital assets. not being depreciated
Total Assets
Deferred Outflows of Resources:
Deferred charge on refunding
Total Deferred Outflows of Resources
Liabilities:
Accounts payable
Deposits payable
Long-term liabilities:
Long-term debt due in one year
Long-term debt due in more than one year
Advances from City of Palm Desert
Interest payable
Advances from Housing Authority
Total Liabilities
Deferred Inflows of Resources:
Deferred charge on refunding
Total Deferred Inflows or Resources
Net Position:
Held in trust
Total Net Position
Private -Purpose
Trust Fund
Successor Agency
to the Palm Desert
Redevelopment
Agency
Agency Private -
Funds
Purpose Trust Fund
S 12,973.591
S 17,906.283
52,002.794
20,615
25,852
-
1.714,110
90.380
-
4.722,788
25,217.887
-
24.891,841
$ 69,810,168
69,755,973
48.641
48,641
$ 429.818
69,810,168
- 19,475.000
219,490,795
16,655,000
6.512,577
630.750
$ 69,810,168 263,193,940
565.770
665,770
(193, 955.096)
$ (193,956,096)
See Notes to Financial Statements 32
CITY OF PALM DESERT
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2019
ADDITIONS:
Taxes
Investment income
Other
TOTAL ADDITIONS
DEDUCTIONS
Housing and development
Interest
Depreciation
Loss on sale of capital assets
TOTAL DEDUCTIONS
Special item (Note 21)
CHANGES IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
Private -Purpose Trust
Fund
Successor Agency to
the Palm Desert
Redevelopment
Agency Private -
Purpose Trust Fund
31,389,409
230,527
334,524
31,954,460
4,728,308
8, 990,020
21,659
7,275,415
21,015,402
7,530,000
18,469,058
(212,424,154)
(193, 955, 096)
See Notes to Financial Statements 33
THIS PAGE INTENTIONALLY LEFT BLANK
34
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
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 ILL 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)
JUNE 30, 2019
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)
JUNE 30, 2019
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
expend itureslexpenses. 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 expend itureslexpenses of that individual governmental or
enterprise fund are at least 10% 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.
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)
JUNE 30, 2019
(Vote 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 Government's 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.
Agency Funds
The Agency, 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 district's 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)
JUNE 30, 2019
Note 1., Summary of Significant Accounting Policies (Continued)
The Measure A Soecial 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 Housing 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 Housino Authoritv Soecial 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 Prooerties Caoital Proiects 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.
In the fund financial statements, the "current financial resources" measurement focus or
the "economic resources" measurement focus is used as appropriate:
011
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Summary of Significant Accounting Policies (Continued)
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 government's
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.
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.
te101
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note is 5ummary of Significant Accounting Policies (Continued)
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 Outflowsllnflows 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.
■ 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)
JUNE 30, 2019
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
years.
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)
JUNE 30, 2019
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 d❑ 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-8 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, 2019, 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.
1. Cash and Investments
For purposes of the statement of cash flows, the City has defined cash and investments to
include cash an 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 government's 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, 2019, 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)
JUNE 30, 2019
Note 1: Summary of Significant Accounting Policies (Continued)
I. inventories, Prepaid Costs and Deposits
Inventory in the amount of $190.257 and $44.812. 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 $5,105 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 $15,429,953 with
another governmental agency to pay for future construction of a City project.
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 - 1 st 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 I%
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 140% 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.
❑. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of
resources related to pensions, and pension expense, information about the fiduciary net
position of the District's California Public Employees' Retirement System (CalPERS) plans
(Plans) and additions to/deductions from the Plans' fiduciary net position have been
determined on the same basis as they are reported by CalPERS. 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.
44
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Summary of Significant Accounting Policies (Continued)
p. Other Post -Employment Benefits (OPEB)
For purposes of measuring 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 July 1, 2017
Measurement Date June 30, 2018
Measurement Period June 30, 2017 to June 30, 2018
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 management's 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 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, 2019, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities $ 291,457, 237
Business -type activities 8,643,249
Component unit 268,248
Fiduciary funds 60,820,549
Total cash and investments $ 361,189.283
45
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 2: Cash and Investments (Continued)
Cash and investments at June 30, 2019, consisted of the following:
Primary Government
Demand accounts
Petty cash
Investments
Total cash and investments - Primary Government
Component Unit
Demand accounts
Fiduciary Funds
Demand accounts
Pooled with primary government
Investments
Total cash and investments - Fiduciary Funds
$ (7,544.751)
22,750
307,622,487
$ 300,100.486
$ 268.248
$ 17.084,055
12.973,591
30,762,903
$ 60,820,549
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, 2019, the carrying amount of the deposits was $22,781,143, and the bank balance
was $22,841,350. The $60,207 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, 2019
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
• Banker's Acceptances issued by commercial banks
• 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 (iAIF) 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 Poors, Fitch and Moody's as of year-end for each
investment type.
47
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 2: Cash and investments (Continued)
Primary Government
Minimum
Total as of
Legal
Investment Type June 30, 2019
Rating
Aaa
AAA Other Unrated
California Local Agency
Irnestment Fund $ 974,938
NIA
$
$ - $ $ 974,938
California Asset Management
Program 132,615,632
NIA
132,615,632 -
Rmerside County Treasurer's
Pooled ImLestment Fund 43,391,W
NIA
43,391,648
-
Medium -Terre Corporate Notes 1,997,620
A
1,997.620
-
Commercial Paper 52,727,890
A11P1
-
52,727,890 -
Held by Fiscal Agent:
Money Market Deposit Account 74,055,738
NIA
- 74.055,738
California Local Agency
Irnestment Fund 1.859.021
NIA
-
1,859,021
Total $ 307,622,487
S 45.389.268
S 132.615,632 $ 52,727,890 $ 76.889,697
The ratings for the "Other" category
above
are as follows:
Investment Type
Aa
P-1 Total
Commercial Paper
$ 4,945,800
$ 47,782,090 $ 52,727,890
48
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 2: Cash and Investments (Continued)
Fiduciary Funds
Minimum
Total as of Legal
Investment Type June 30, 2019 Rating Aaa AAA Unrated
California Local Agency
Investment Fund $ 719 NIA $ $ - $ 719
California Asset
Management Program 5,625 NIA 5,625 -
Riverside County Treasurers
Pooled Investment Fund 54,883 NIA 54,883 - -
Investment in City Bonds -
SuccessorAgency RDA 761,000 N/A - 761,000
Held by Fiscal Agent:
Money Market Deposit Accounts
SuccessorAgency RDA 25,217,888 NIA 25,217,888
Money Market Deposit Accounts
Assessment District 2,100,555 NIA 2-100,555
California Local Agency
Investment Fund -
Assessment District 2.622.233 N/A 2.622.233
Total $ 30.762,903 $ 54A83 $ 5,625 $ 30,70Z395
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, 2019, 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)
JUNE 30, 2019
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. 2019, 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%
NIA
United States Government -Sponsored Agency
Securities
100%
30%
Banker's Acceptances
40%
30"A
Commercial Paper
25%
10%
Negotiable Certificates of Deposit
30%
NIA
Teme Certificates of Deposit
15%
NIA
Repurchase Agreements
20%
NIA
Medium -Term Corporate Notes
30%
10%
Money Market Mutual Funds
20%
NIA
Local Agency Investment Fund (LAIF)
$50M/Acct
NIA
Structured Notes (STRIPS)
20%
NIA
Local Govemment Investment Pools
75%
N/A
NIA - 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 and the
weighted -average maturity of the City portfolio shall not exceed 540 days. 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)
JUNE 30, 2019
Note 2: Cash and Investments (Continued)
As of Jude 30, 2019, 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 $
974,938 $ $ $
S 974.938
California Asset
Management Program
132.615,632
132.615,632
Riverside County Treasurer's
Pooled investment Fund
43.391,648 -
- 43.391,648
Medium -Term Corporate Notes
1.997.620
1,997,620
Commercial Paper
47.782,090 4,945,800
52,727,890
Held by Fiscal Agent:
Money Market Deposit Accounts
74.055,738 -
74,055,738
California Local Agency
Investment Fund
1.859,021 -
1.859.021
Total Investments S
302.676,687 $ 4,945,800 $ $
- $ 307.622,487
Fiduciary Funds
Investment Type
Califomia Local Agency
Investment Fund
Califomia Asset
Management Program
Riverside County Treasurer's
Pooled Investment Fund
Investment in City Bonds -
Successory Agency RDA
Held by Fiscaf Agent-
Money Market Deposit Accounts -
Successory Agency RDA
Money Market Deposit Accounts -
Assessment District
LAIF - Assessment District
Total Investments
Less Than 6 months - 1 year - Over Fair
6 months 1 year 3 years 3 years Value
$ 719 $ $ $ $ 719
5,625 5,625
54,883 54,883
73.000 66,000 622,000 761.000
25,217,888 25,217,888
2,100.555 - - 2.100.555
2,622,233 - 2,622,233
S 30.074,903 $ $ 66,000 $ 622,000 $ 30,762,903
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 LAW 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)
JUNE 30, 2019
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.
6VA
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note Z: 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 asset's 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 abservability
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)l
JUNE 30, 2019
Note 2: Cash and Investments (Continued)
Primary Government
Investment Type
Medium -Term Corporate Notes
Commercial Paper
Total Leveled Investments
California Local Agency Investment Fund'
California Asset Management Program'
Riverside County Treasurer's
Pooled Investment Fund'
Held by Fiscal Agent:
Money Market Deposit Accounts'
California Local Agency Investment Fund'
Total Investment Portfolio
Fiduciary Funds
Investment Type
Investment in City Bonds -
Successor Agency Former RDA
Total Leveled Investments
California Local Agency Investment Fund'
California Asset Management Program'
Riverside County Treasurers
Pooled Investment Fund"
Held by Fiscal Agent.
Money Market Deposit Accounts' -
Successor Agency Former RDA
Money Market Deposit Accounts' -
Assessment District
IAIF" - Assessment District
Total Investment Portfolio
" Not subject to fair veiue measurements
Quoted Observable Unobservable
Prices Inputs Inputs
Level Lewl.2 Level Total
$ S 1.997.620 $ S 1,997,620
52.727, 890 52.727, 890
S $ 54.725,510 $ 54.725.510
974,938
132,615,632
43, 391,648
74.055, 738
1.859,021
$ 307,622,487
Quoted Observable Unobservable
Prices Inputs Inputs
Level1 Level Level Total
$ $ $ 761,000 $ 761,000
$ - $ $ 761.000 $ 761.000
719
5.625
54.883
25,217.888
2.100,555
2,622,233
$ 30,762,903
54
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019, the receivable balance was $1,310,000.
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, 2019, 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 $6,419,855 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 E I P 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 E I P program, as of June 30, 2019, 122 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% annually. On June 30, 2019, the outstanding loans receivable
through the EIP Program was $2,689,160.
55
CITY OF PALM DESERT"
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 5 429,000 7.25% 30 years
Deed of Trust Loan balance and interest due
Program or 2024
upon maturity. unpaid balance of
loan or interest will bear an
interest rate of 12%.
Home Improvement $ 336,183 NIA NIA
Deed of Trust Loan is payable upon change or
Loans (1)
transfer of title, refinancing or
upon the death of the borrower.
Restrictive covenants are placed
against property to maintain
affordability for up to 45 years in
exchange for favorable loan
terms.
Portola Palms $ 74.580 3.00% 30 years
Deed of Trust Loan balance and interest will be
Mobile Home Park from date
forgiven at maturity if debtor does
of loan
not breach the terms and
conditions of either the unit
regulatory agreement or note.
Desert Rose (1) $ 2.452.457 3.00% 36-45
Deed of Trust Loan will be forgiven 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) $ 5.649,429 3.00% 30-45
Deed of Trust 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% 3045
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 covenants are place
against property to maintain
affordability from up to 45 years
in exchange for favorable loan
terms.
All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive covenant.
(1) Portion of deferred loans are from funding sources other than Housing Authority.
56
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 4: Interfund Receivables, Payable and Transfers
Due TolFrom Other Funds
The composition of interfund balances as of June 30, 2019, was as follows:
Due To Due From
Amount
General Fund Other Governmental Funds
$ 1,844,000
Desert Willow Golf Course
1,500,000
Housing Asset Fund General Fund
1,731,000
Other Governmental Funds
1,600,000
Other Governmental Funds Desert Willow Golf Course
500,000
$ 7,175,000
The General Fund advanced $1,844,000 to the Energy Independence Special Revenue Fund
to payoff the bonds used to fund energy efficiency and loaned $1,500,000 to Desert Willow
Golf Course to fund the daily operations, including the daily operations of the restaurant.
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
Desert Willow Goff Course
$ 228,000
692,718
$ 920,718
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 BASK FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 4: Interfund Receivables, Payable and Transfers [Continued]
Interfund Transfers
The composition of interfund transfers as of June 30, 2019, was as follows:
Transfers In
Prop A Fire Tax Other
Special Governmental Internal
Transfers Out General Fund Revenue Fund Funds Service Fund Totals
General Fund S - S 2,300 000 $ 1,603,548 $ 717,110 S 4.620.658
Housing Authority
Special Revenue
Fund
Other
Governmental
Funds
Enterprise Fund
Parkview Office Complex
Totals
478,698 478.698
637,202 637,202
300,000 - - - 300.000
$ 937.202 $ 2.300,000 $ 1082,246 $ 717,110 $ 6,036.558
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.
6ii ]
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 5: Capital Assets
A summary of changes in capital assets at June 30, 2019, was as follows:
Primary Government — Governmental Activities
Balance at
June 30, 2018 Transfers Additions Deletions
Capital assets, not being
depreciated:
Land
$ 79,288.949 ;
Right-of-way
121,095.645
Construction -in -progress
2.293,507
Internal 5ermce Fund -
Construction -in -progress
224,011
Total capital assets, not
being depreciated
202.902,112
Capital assets,
being depreciated:
Buildings
144,174, 975
Improvements other
than buildings
60,270,277
Machinery and equipment
10.574,337
Infrastructure
241, 725.688
Equipment - Internal
service fund
6.364,738
Total capital assets,
being depreciated
463,110,015
Less accumulated
depreciation for:
Buildings
(64.067,845)
Improvements other
than buildings
(40.458,391)
Machinery and equipment
(9,807,785)
Infrastructure
(109, 059, 785)
Equipment - Internal
service fund
(4,434,251)
Total accumulated
(227,828,057)
depreciation
Capital assets, being
depreciated. net
235.281,958
Capital assets, net -
Governmental Actiuties
$ 438,184,070 S
$ 2,670,000 $
(13,420) 130,602
(212,704) 21,107
(226.124) 2.821.709
Balance at
June 30, 2019
$ 81.958.949
121, 095, 645
(291.222) 2,119,467
32,414
(291,222) 205,206,475
144,174,975
- 394,845
(34,991)
60.630,131
13.420 201.064
(215.338)
10,573,483
- -
-
241.725.688
212,704 248.072
(155, 772)
6, 669, 742
226.124 843.981
(406,101)
463, 774, 019
- (3,499, 733)
-
(67.567, 578)
(2,344,597)
31,346
(42.771, 642)
- (3217837)
215,339
(9,914,283)
(5.182, 594)
-
(114, 242, 379)
(469, 027)
148,215
(4,755,063)
(11.817.788)
394,900
(239,250,945)
226,124 (10,973,807) (11,201) 224,523.074
$ (8,152,098) $ (302.423) $ 429,729,549
W
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 5: Capital Assets (Continued)
A summary of changes in capital assets at June 30, 2019, was as follows:
Primary Government — Business -Type Activities
Balance at Balance at
July 1, 2018 Additions Deletions June 30, 2019
Capital assets, not being depreciated
Land $ 53.304.965 $ 5
Total capital assets. not being depreciated 53.304.965
Capital assets, being depreciated:
Buildings and improvements 27,499,875 467.655
Machinery and equipment 6,623,538 938.040
Total capital assets, being depreciated 34,123,413 1,405,695
Less accumulated depreciation for
$ 53,304,965
53.304,965
- 27.967.530
(1155.617) 6.405.961
(1,155.617) 34,373,491
Buildings and improvements (11.830.554) (822.564)
(12,653.118)
Machinery and equipment (4,992.697) (522.130) 1,155,617
(4,359.210)
Total accumulated depreciation
(16,823,251) (1,344,694) 1,155,611
(11,012,328)
Total capital assets being depreciated. net 17.300.162 61,001 -
17.361,163
Capital assets. net- Business -Type Activities $ 70,605,127 $ 61,001 $ - $
70,666.128
Depreciation expense was charged to functions/programs of the primary
government as
follows.
Governmental Activities:
General government
$ 2,026,967
Housing and redevelopment
1,710,870
Public safety
104,006
Public works
5,725,384
Parks, recreation and culture
1,781,534
Depreciation expenses for internal service funds is charged to
various functions based on usage of capital assets
469,027
Total depreciation expense - governmental activities
$ 11,817,788
Business -Type Activities'
Pal-Wew Office complex
$ 286,723
Desert Willow Golf Course
1,057,971
Total depreciation expense - business -type activities
$ 1,344,694
We
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 6: Long -Term Debt
The following is a summary of long-term liability transactions of the City for the year ended
June 30. 2019.
Primary Government— Governmental Activities
Special assessment debt
with gowmment
commitment
Limited obligation
Balance
June 30, 2018
$ 1,368,000 $
Balance Due Within
Additions Reductions June 30, 2019 One Year
- $ (58,000) $ 1,310.000 5 47.000
improvement bonds 1.290,000 (529.000) 761,000 73,000
Total $ 2,658,000 5 $ (587, 000) $ 2,071,000 S 120,000
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 Underaroundinci Assessment District No. 04-01. Limited ❑blioation 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. fn 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)
JUNE 30, 2019
[Vote 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
2020
$ 47,000
$ 65,937
$ 112,937
2021
48,000
63,574
111,574
2022
51,000
61,086
112,086
2023
53,000
58,447
111,447
2024
56,000
55,667
111,667
2025-2029
327,000
231,118
558,118
2030-2034
421,000
135,419
556,419
2035-2037
307,000
24,282
331,282
Total
$ 1,310,000
$ 695,530
$ 2,005,530
Limited Obligation Bonds
Limited Obligation 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
2020
$ 35.000
$ 11,175
$ 46,175
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
2025-2029
182,000
19,680
201,680
2030
39,000
585
39,585
Total
$ 390,000
$ 66,150
$ 456,150
62
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 6: Long -Term Debt (Continued)
Limited Obiiaation Improvement Bands 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
2020
$ 38,000
$ 10,560
$ 48,560
2021
34,000
9,480
43,480
2022
36,000
8,430
44,430
2023
37,000
7,335
44,335
2024
38,000
6,210
44,210
2025-2029
156,000
16,020
172,020
2030
32,000
480
32,480
Total
$ 371,000
$ 58,515
$ 429,515
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
$2,628,215.
Balance
Balance Due Within
June 30, 2018
Additions
Deletions
June 30, 2019 One Year
$ 2,386,772
$ 1,658,800
$ 1,417,357
$ 2,628,215 $ 300,000
Note 8: Capital Leases
Primary Government —
Business -type
Activities
Balance
Balance Due Within
June 30, 2018
Additions Reductions June 30, 2019 One Year
Capital leases
$ 1.493,330 $
738,949 $
(636,885) $ 1,595,394 $ 450,382
63
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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%_ 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. $ 427,649
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. 236,913
PNC Equipment Finance LLC - The present value of the minimum lease
payment an 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, 201T 930,832
Present value of net minimum lease payments 1,595.394
Less: current portion (450,382)
$ 1,145,012
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, 2019:
Year Ending
Minimum Lease
June 30,
Payments
2020
$ 523,780
2021
523,780
2022
523,780
2023
198.987
Total
1,770,327
Less: amounts representing interest
(174,933)
Present value of net minimum lease payments
$ 1,595,394
The assets acquired through capital lease are as follows:
Machinery and equipment $ 2.461.344
Less accumulated depreciation t905,220)
$ 1.556,124
64
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2018 June 30, 2019
Claims payable - Beginning of year $ 398,683 $ 360,237
Incurred claims (including IBNR) and
changes in estimates 367,025 763,571
Claims payments (405,471) (539,369)
Claims payable - End of year $ 360,237 $ 584,439
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 $15,506,583 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 (CalPERS), 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
ry1U7:69=1:i9
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full-time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non -duty disability benefits after
10 years of service. The death benefit is one of the following: the Basic Death Benefit, the
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 June 30, 2019, 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 resting schedule
5 years of seance
5 years of service
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
37.276%
37.276%
Employees Covered
At June 30, 2019. the following employees were covered by the benefit terms for all Plans:
Inactive employees or beneficiaries currently receiving benefits 155
Inactive employees entitled to but not yet receiving benefits 75
Active employees 111
Total 341
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 CalPERS. 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2017 actuarial valuations were determined using
the following actuarial assumptions:
Valuation date
Measurement date
Actuarial cost method
Actuarial assumptions:
Discount rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality rate table *
June 30, 2017
June 30, 2018
Entry age normal
7.15%
2.50%
3.00%
Varies by Entry Age and Service
7.50 Net of Pension Plan Investment and Administrative
Expenses; includes Inflation
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 Ca[PERS 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 Report" 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)
JUNE 30, 2019
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 long-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
CalPERS Board effective on July 1, 2014.
New Strategic
Asset Class
Allocation
Global Equity
50.00%
Global Fixed Income
28,00%
Inflation Sensitive
0.00%
Private Equity
8.00%
Real Estate
13.00%
Liquidity
1.00%
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
Real Return
Real Return
Years 1 - 10 (1)
Years 11+ (2)
4.80%
5.98%
1.00%
2.62%
0.77%
1.81%
6.30%
7.23%
3.75%
4.93%
0.00%
-0, 92%
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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, 2019, with a
measurement date of June 30, 2018. for the Miscellaneous Plan are as follows:
Balance at June 30, 2017 (Measurement Date)
Changes in the Year:
Service Cost
Interest on the Total Pension Liability
Difference between Expected and Actual Experience
Changes in Assumptions
Net Plan to Plan Resource Movement
Contributions - Employer
Contributions - Employees
Net Imestment Income
Benefit Payments including Refunds of Employee
Contributions
Administrative expense
Other Misc Income 1 (Expense)
Net Changes
Balance at June 30, 2018 (Measurement Date)
Increase (decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
$ 126,659,621 $ 87,693,643 $ 38.965,978
2,196,462
2,196,462
8,797,867
8,797,867
(594,882)
(594,882)
(1,148,708)
-
(1,148.708)
(222)
222
5,407,412
(5,407.412)
-
812.447
(812,447)
-
7,555,653
(7,555,653)
(5,934,338) (5,934,338)
-
- (136,651)
136.651
- (259,502)
259,502
3,316,401 7,444,799
(4,128,398)
$ 129,976,022 $ 95,138,442 $
34,837,580
0
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan (Continued)
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 $ 52,561,744
Current Discount Rate 7.15%
Net Pension Liability $ 34,837,580
1% Increase 8.15%
Net Pension Liability $ 20,178,649
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 2018, demographic assumptions and inflation rate were changed in accordance to the
CaIPERS Experience Study and Review of Actuarial Assumptions December 2017.
d. Pension Expense and Deferred Outflows/inflows of Resources Related to Pensions
For the year ended June 30, 2019. the City recognized pension expense of $3,626,791. At
June 30, 2019, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources.
Pension contributions subsequent to measurement date
Difference between actual and expected experience
Change in Assumptions
Net difference between projected and actual eamings on
pension plan investments
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
S 5,963.737
S
-
(1.165,814)
2,455,907
(765.805)
76.676
S 8,496,320 $ [1,931,519}
rug
CITY OF PALM DESERT
NOTES T❑ BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 11: Pension Plan (Continued)
$5,963,737 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
2020
$ 2,130,893
2021
(377,348)
2022
(894,631)
2023
(257, 950)
2024
-
Thereafter
-
Totaf
$ 600,964
e. Payable to the Pension Plan
At June 30, 2019, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2019.
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, 2019, were as follows.
71
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED}
JUNE 30, 2019
Note 12: Fund Balances (Continued)
C a 31ta l Pr oje Ct a
5ee cial Revenue Fund&
Fund
Orher
PropAFire Housing Asset
Housing
capital
Governmental
General Fund
Measure A Tax Fund
Author"
Properties
Funds
Total
No ns pa no as le,
Advances
$ 8,213,000 5
S - 5
Loans and notes receivable
1,324.978
-
-
-
1,324-978
Repaid Cosls
1.021.418
48D
18137E
4 633
1-214-607
Total No ns pe Rd a bte
10,666,336
- 480
168.076
-
4,633
10,752,555
Re at tined for
Capital pojerts
As s ass Rent d ntncts innprovements
- -
-
2-D59,4B0
2,059,d8Q
Capital bond projects
-
- - 4.677.513
-
69-070,739
-
73.948.352
Total cap ial projects
- - 4.877.611
69.070 739
2,4%480
76.007.812
Debt service
-
- -
-
-
72.242
72.242
Law income Musing
Projects and programs
-
- 41,98Q,113
-
3A28.645
45.0%.759
Apartments
- -
7,876.M
-
-
7.876.198
Total low nCorre housing
-
- 41.$80.113
7,875,198
-
3.026.646
52.882.957
W bic f aclkres
Park fac YeS
-
- - -
-
1,662.454
1.662.454
Cnilecara facsbea
-
- - -
-
1,396.89g
1,396,5%
City facii5e5
-
- -
-
-
1.342.716
1.342.716
Total public facilities
-
- - -
-
4.401-769
4,401.769
Public safety:
Fire facill
- -
-
-
1 153,479
1.153,479
Fire operation
-
2.501.481 -
-
-
-
2.501 451
Police program S equipment
- -
-
-
437,263
437,263
Total public safety
-
2.501.481 -
-
-
1-590.742
4.092223
Specal program.
Camtrmry projects
- - -
-
38.317
39,317
Recycling projects
- - -
-
-
2,626,614
2.625.614
Special dlstr[t advertG ng
-
- -
-
-
70.149
70.149
RN query projects
-
- - -
137.642
137.1542
Lands coping and lighting
- -
-
3368,012
3,568,412
Art CorGhudgn 4 Arimov ements
-
- - -
-
1.217.695
1.217.695
Total spec at progr a.m
-
- - -
-
7.655.429
7.658.429
Street related purposes
COnslrucean E atherov errents
-
13-891.245 -
-
2.080-514
15.971.759
Sveet resurfacing
-
- -
-
1,346245
1.346.245
FacR*s maintenance reserve
-
11.233.443 -
-
-
11,233,443
Drainage projects
-
- -
-
-
1.617:656
1.B1 i.656
Traffic signals projects
-
- -
-
196.176
496.178
Total street related purposes
-
25.124.688 - -
-
5540.51)3
30,666,281
Total lie str i ve, d
-
$6,124,436 2,601,4Rt 46.837.726
7.576,186
69,a70,739
24,30.901
175,780,733
Cam no itle d t o:
Aquatic center
- - -
-
2 134 436
2.134 436
Capita: asset replacenmrit
-
-
11.875488
-
-
11,875,488
Captal.rpovernerd projects reserve
12.534.707
-
-
-
$2.534.707
Facilities rmmanance reserve
16.112.690
- -
-
-
16.112.690
Liability reserve
4,000,000
- -
-
-
4.000.000
Other Fund stabily reserve
635111,wo
- -
-
-
-
5.553.000
Errergencylpontigency reserve
12-134744
- - -
-
-
12.134,744
Employ mern benefits res erve
8862.092
-
-
-
-
8.862.082
Ezonorric deveicprre nt I
land acquisim reserve
4.000.000
- - -
-
4000.000
Energy loan program
-
- -
-
-
2.237.728
2237.728
Total Comm ltted
63,197,223
- - -
t1,l76,486
-
4.372.164
79,444,875
Asslpned to:
Gen Brat fund operating reserve
15.156.972
- - -
-
15.156.972
Capital projects
Faciires mntenance reserve
- - -
-
2.493.084
2.493.054
dy capital outlay projects
-
- -
-
-
6.400,000
6.400.000
Tots capital Projects
-
- -
-
B,893,084
8 9s3.084
Property acquisition
-
- -
-
-
420.38T
420.397
CanYunty con"ncy
444.000
- -
-
444,000
P,bk facilse-5
City facaties
20
-
-
-
20
Parks Facilities
86,M7
-
-
-
-
86.397
Facilities rantenance reserve
- - -
-
-
IM7165
3.097.865
Pubic faplriC5
- - -
-
-
656.628
656.62a
Goff fac Yes
-
-
-
-
6,362,652
5,362,852
Total public fac Ries
WA07
- - -
-
-
9,117,365
9203-772
special Prograrr6
Library
Profess idnal sent ces
27675t
- -
-
-
276.751
Total special pr ngrarrs
276 75 1
-
-
-
670.576
947.327
Sheet reialed purposes
Facit[res minten once reserve
-
-
-
-
2-1315.8513
2.135.859
Total street related purposes
-
-
-
2.136.859
2.136,859
Total Ass lgood
15.964.130
- -
-
-
21,2341,271
37,202,401
Unassigned
3,322,321
- - -
-
-
-
3,3220321
Totals
S 93.043.070 f
25,124,688 S 2.501.48, S 46,854.206
S 19,939,762
4 69,0701737
% 48,964,969 4
306.502.815
72
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 12: Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonsoendable - 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.
Assigned - 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 an September 271h, 2018 and will be in effect
for future fiscal years.
Unassigned - This classification includes the residual balance for the government's 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 116 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.
73
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 Program
In the liability program, claims are pooled separately between police and general
government exposures. (1) The payroll of each member is evaluated relative to the payroll
of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000
for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed
based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is
$50 million per occurrence. Costs of covered 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:/Icjpia.org/protectiontcoverage-programs-
Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general
government exposures. (1) The payroll of each member is evaluated relative to the payroll
of other members. A variable credibility factor is determined for each member. which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $50.000 to $100,000
for each occurrence and is evaluated as a percentage of the pool's total incurred costs
within the second layer. (4) incurred costs 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 2018-19, the Authority's pooled retention is $2 million per occurrence, with reinsurance
to statutory limits under California Workers' Compensation Law. Employer's Liability losses
are pooled among members to $2 million. Coverage from $2 million to $5 million is
purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million
to $10 million are pooled among members.
74
Cy III WK61a9114IT, 1 ■]:1•9:1:41
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 13: Risk Management (Continued)
c. Purchased Insurance
Pollution Legal 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.
Propertv 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 Desert's 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 Desert's
property currently has all-risk property insurance protection in the amount of
$253,469,466. 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 Liabilitv 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
2018-19.
W
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL. STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 14: Unearned Revenues and Deferred Inflows of Resources
Unearned Revenues
Major Governmental Funds
General Fund has received $768 in advanced rent and S2,500 in advanced sponsorship
payments.
Measure A Special Revenue Fund has $15,429,953 in funds received from the Successor
Agency that are deemed unearned until expenditures are incurred related to construction of
interchange.
Housing Authoritv Soecial Revenue Fund has other amounts reported as unearned revenues
include $5,984 for prepaid rents -
Other Governmental Funds
Soecial Revenue Funds
$141,008 of funds are deemed unearned until permits are issued in the Housing Mitigation Fee
Fund.
$73,471 of grant funds are deemed unearned until expenditures are incurred in the Public
Safety Police Grants Fund.
$26,030 of grant funds are deemed unearned until expenditures are incurred in the
Recycling Fund.
$31,104 represents the unused portions of prepaid aquatic fees in the Aquatic Center 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, 2019.
Business -type Activities
The balance of $237,104 represents the unused portions of prepaid golf fees and value of
unredeemed gift certificates.
The balance of $8,910 represents the unearned rent for the Parkview Off ice.
Component Unit
The balance of $79.873 represents the unused portions of prepaid banquets.
76
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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.
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 tCorporation) 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 .tune 30, 2019, the
Corporation owed the City rent totaling $228,000, 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, 2019, $39,338 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 $42,091 on the advance from the General Fund to the
Energy Independence Special Revenue Fund, and $480,337 on investments purchased, and
$1,765,620 on advances to the S uccesso r Age ncy is reported as unavailable revenue.
Other accounts receivable for reimbursement of court fees in the amount of $18,978,
outstanding lien in the amount of $51,269, traffic light reimbursements in the amount of
$83,099. county abandoned vehicle reimbursement in the amount of $32,256 and police
shared cost with local school district in the amount of $82,244 are not available at year end.
Housina Asset Fund
Uncollected interest on notes receivable of $32,099 due from the Palm Desert Development
Company has been reported as unavailable.
Interest in the amount of $849,405 on advances to the Successor Agency is reported as
unavailable revenue.
77
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 14: Unearned Revenues and Deferred Inflows ❑f Resources (Continued)
Other Governmental Funds
Special Revenue Funds
Interest accrued on loans of $99,264 on loans receivable through the City's EIP Program is
reported as unavailable (see Note 3).
Caoital Proiects Funds
The Capital Projects Reserve Capital Projects Fund has $1,632,000 in interest on advances to
the Successor Agency is reported as unavailable.
Debt Service Fund
Assessment receivables in the amount of $1,172,053 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.
(Vote 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).
Ali 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 Cal PERS at Lincoln Plaza North.
400 Q Street, Sacramento, California 95811, or by visiting the CAPERS website at
www. cal pers.ca. aov.
78
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS [CONTINUED]
JUNE 30, 2019
Note 15: Other Post -Employment Benefits (Continued)
Emr)lovees 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 CalPERS 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.
Consecutive 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%
Emoloyees Hired ❑n or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS 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
T1,
50%
10°Io
150%
20%
257
300%
35°%
400%
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%
50%
50%
Employees with at least 5 years of service, not meeting the eligibility requirements for the
stipend program, who retire simultaneously from the City and CalPERS are eligible to
continue medical coverage through the CalPERS Health Plan. The City is required to pay
the CAPERS minimum employer contribution ($133 in 2018 and $136 in 2019) for these
employees.
79
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 15: Other Post -Employment Benefits (Continued)
Emolovees 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 C4's ICMA Retirement Health Savings Account. Employees have
a mandatory 1 % contribution to the Retirement Health Savings Plan and the City matches
the 1% 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 July 1, 2017, the date of the most recent actuarial valuation, the City's plan has
110 active employees.
Emolovees Covered - Plan membership, at July 1, 2017 valuation date, membership
consisted of the following
Inactive plan members or beneficiaries 103
Active plan members 110
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 Liability
The City's Net OPEB Liability was measured as of June 30, 2018 and the Total OPEB
Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation
as of July 1, 2017, 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% per annum
Assumed Wage Inflation 3% per annum
Investment Rate of Return 6,73% per annum
Healthcare cost -trend rates Assumed to start at 7.50% and grade down to 5.00% for
years 2024 and thereafter.
Retirement Age 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 must
join 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.
:N
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 15. Other Post -Employment Benefits (Continued)
d, Discount Rate
GASB 75 requires a discount rate that reflects the following:
aj 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 AAIAa or higher — to the extent that the conditions in
(a) are not met.
e. Changes in the Net OPEB Liability
The changes in the Net OPI B liability for the Plan are as follows:
Balance at June 30, 2017 (Measurement Date)
Changes recognized for the measurement period:
Service Cost
Interest
Expected Investment Income
Employer Contributions
Administrative Expenses
Benefit Payments
Other Expenses
Net Changes in Fiscal Year 2017-2018
Balance at June 30, 2018 [Measurement Date]
Increase JDecreasej
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
5 17,817,607 $ 13,697,023 S 4,120,584
357,675
357,675
1,199,747
-
1,199,747
-
843,319
(843, 319)
1,381,501
(1,381,501)
(7,371)
7,371
(696,845)
(696,845)
-
-
(a115)
18,115
860,577
1,502,489
(641,912)
$ 18.678,184 $
15,199, 512 $
3,478,672
f. Sensitivity of the Total OPEB Liability and Net OPEB Liability to Changes in the
Discount Rate
The following presents the Total OPEB liability and Net OPEB liability, as well as what the
total OPEB liability and net OPEB liability would be if they were calculated using a discount
rate that is 1-percentage point lower (5.73 percent) or 1-percentage-point higher
(7.73 percent) than the current discount rate:
Total OPEB Liability
Net OPEB Liability
Discount Rate - 1 % Current Discount Rate Discount Rate +1 %
(5.73%) (6.73%) (7.73%)
$ 21,070,027 $ 18.676,184 $ 16,690,948
$ 5,870,515 $
3,478,672 $ 1,491,436
81
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 15: Other Post -Employment Benefits (Continued)
g. Sensitivity of the Total OPEB Liability and Net OPEB Liability to Changes in the
Health Care Cost Trend Rates
The following presents the Total OPEB liability and net OPEB liability, as well as what the
Total OPEB liability and net OPEB liability 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-paint higher (9.50 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%) 5.00%) to 6.00%)
Total OPES Liability $ 16,314.104 $ 18,678,184 $ 21,907.244
Net OPEB Liability $ 1,114.592 $ 3,478.572 $ 6,707,732
h. OPEB Expense and Deferred Outflows/inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2019, the City recognized ❑PEB expense of $646,790,
As of fiscal year ended June 30, 2019, the City reported deferred outflows and inflows of
resources related to OPEB from the following sources
Difference between projected and actual return on
OPEB plan investments
Contributions made subsequent to the
measurement date
Total
Deferred outflows Deferred Inflows
of Resources of Resources
S 43,750 $
2, 211, 778
$ 2,255,528 $ _
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
Outflowsl(lnflows)
June 30:
of Resources
2020
S 7,873
2021
7,873
2022
7,872
2023
20,132
2024
-
Thereafter
-
Total
$ 43,750
82
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 16: Special Assessment Debt
Below is a summary of the changes in the special assessment bonds payable:
Balance at
July 1, 2018
2003 Assessment Revenue
Bonds
$ 1,525,000 $
AD 9B-1 Limited obligation
Refunding Bonds
65.000
CFD 2005.1 Special Tax Bonds
Series 2006A
29,195.000
AD 2004-2 Limited Obligation
Payments and Balance at Due Within
Additions Reductions June 30, 2019 One Year
- $ 170,000 $ 1,355.000 $ 175.000
65,000
935.000 28,260,000 980.000
Improvement Bonds 21,935,000 670,000 21.265.000 700.000
Total 5 52,720.000 $ $ 1,840.000 $ 50,880,000 $ 1.855.000
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
2020
$ 175,000
$ 67,344
$ 242,344
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
2025-2029
675,000
95,003
770,003
Total
$ 1,355,000
$ 355,641
$ 1,710,641
83
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 16: Special Assessment Debt (Continued)
As of June 30, 2019, 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
Assessment District 01-1
$ 180,000
1,185.000
$ 1, 365, 000
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955.000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District
No. 98-1, which were issued in 1998. The bonds are secured by unpaid assessments on
parcels within the District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to
5.1 % with interest payable semi-annually on March 2 and September 2, with principal maturing
annually on September 2. There is no outstanding balance for these bonds as of
June 30. 2019.
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.
84
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 16: Special Assessment Debt (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30,
Principal
Interest
Total
2020
$ 980,000
$ 1,485,625
$ 2,465,625
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
2025-2029
7,000,000
5,282,944
12, 282, 944
2030-2034
9,130,000
3,130,798
12,260,798
2035-2037
6,705,000
566,363
7,271,363
Total
$ 28,260,000
$ 15,873,835
$ 44,133,835
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 2019. 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
2020
$ 700,000
$ 1,054,885
$ 1,754,885
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
2025-2029
4,8901000
3,838,919
8,728,919
2030-2034
6,265,000
2,428,238
8,693,238
2035-2038
6,265,000
659,048
6,924,048
Total
$ 21,265,000
$ 11,843,455
$ 33,108,455
85
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 16:
Note 17
Special Assessment Debt (Continued)
Bond Reserve Requirements
At June 30, 2019, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
2003 Financing Authority Revenue Bonds S 213,830 5 238,987
CFD 2005-1 Special Tax Bonds 2,465,700 2,617,752
Assessment District 29 1,755,979 1,844,422
Other Disclosures
The Palm Desert Recreational Facilities Corporation has a deficit of $737,343, 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 $193,955,096, 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 18: Construction and Other Significant Commitments
Construction Commitments
Primary Government
Current Year
Prior Year
Remaining
Project
Spent
Spent
Commitment
General Fund
Parks 1 Recreation
$ -
$
$ 10,671
City Owned Buildings Improvements
-
9,430
20
Landscape and Lighting
48,760
-
75,716
CDBG I Outside Agency
113.671
11,132
Marrict 1 Hotel El Paseo CO-OP
-
70.765
Governmental Software Implementation
16,720
23,685
Promotion Advertising I Rebranding
9,250
-
149,000
Hotel Feasibility
28,080
21,345
575
Misc. Non -Construction
112,469
24,428
21,594
Measure A
Street Improvements
372.271
-
39,908
San Pablo Improvements
19,082
3,633,813
Drainage Improvements
-
-
1,972,179
Capital Properties
Parks 1 Recreation
-
-
403,329
San Pablo Improvements
654,904
283,429
4,343.930
Presidents Plaza Parking Lot Improvements
194,570
-
411,550
Alessandro West Improvement Project
21,818
-
532
Drainage Improvements
-
-
2,448,635
Other Governmental Funds
Parks I Recreation
-
-
2,059
City Owned Buildings Improvements
6,259
40,545
25,702
Landscape and Lighting
10,480
-
12,664
San Pablo Improvements
-
-
2,644,860
CVLINK
10,663
-
2,338
Recycle Projects
11,985
38,015
CDBG 1 Outside Agency
32,000
-
93,000
Governmental Software Implementation
15,644
3,312
105,204
Alessandro West Improvement Project
-
17,936
37,999
Drainage Improvements
80,250
193,566
36,100
El Paseo Art Exhibit
86,625
-
15.625
Council Chambers AV Upgrade
13,755
-
10,845
flub
10.663
-
Z338
Misc. Non -Construction
581-063
34,418
400
$ 2,450,982
$ 628,411
$ 16,644,183
Fiduciary Funds
Current Year Prior Year Remaining
Project Spent Spent Commitment
Sewer Rent Payment $ 139,673 $ 93,115 $ 2,758,538
$ 139,673 $ 93,115 $ 2,758,538
87
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 Cafifomia Redevelopment Association, et of v. Ana
Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State were
dissolved as of February 1, 2012, and a successor agency was established for each former
redevelopment agency to wind -down the affairs of its former redevelopment agency. Certain
actions of each successor agency must first be approved by its oversight board, composed of
seven -members representing taxing entities.
On August 25, 2011, the City Council adopted Resolution No. 2011-76, 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"). Although
the Board of Directors of the SARDA is comprised of the same individuals as the City Council,
HSC Section 34173(g) expressly affirms that the SARDA is a separate public entity from the
City,and that the liabilities of the Dissolved RDA shall not be transferred to the City nor shall
the assets of the Dissolved RDA become assets of the City.
The City elected on February 9, 2012 to have the Palm Desert Housing Authority serve as the
Housing Successor. Under HSC Section 34176, the Housing Successor assumed the
housing functions of the Dissolved RDA. The Housing Authority (as the Housing Successor)
submitted to the State Department of Finance ("DOF") a list of housing assets to be transferred
by the SARDA to the Housing Successor. On August 31, 2012, the DOF issued a letter
indicating that the DOF did not have any 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 2011-2012 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 Judgment" 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.
Upon dissolution of the Dissolved RDA, the County Auditor -Controller ("CAC") is charged
with establishing a Redevelopment Property Tax Trust Fund (the "RPTTF") for the SARDA and
depositing into the RPTTF the amount of property taxes that would have been redevelopment
property tax increment had the Dissolved RDA not been dissolved.
l:3:j
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 19: Dissolution of California Redevelopment Agencies and Wind -Down by Successor
Agencies (Continued)
The SARDA is required to prepare an annual recognized obligation payment schedule
(the "ROPS") approved by the oversight board setting forth the amounts due for enforceable
obligations from each July 1 through the following June 30. The ROPS is submitted to the CAC
and the DOF for consideration. The CAC only makes payments to the SARDA from the RPTTF
based on the ROPS amount approved by the DOF.
SARDA was required to conduct due diligence reviews of both the low and moderate income
housing fund and all other funds by October 15, 2012 and January 15, 2013, respectively, to
compute the funds (cash) which were not needed by the SARDA to be retained to pay for
existing enforceable obligations or were otherwise restricted, and therefore, must be remitted
to the CAC. The SARDA paid a total amount of $40,988,399 to the CAC based on the due
diligence reviews per the DOF's determination.
The DOF issued a Finding of Completion on May 15, 2013 after SARDA made the payments
required as a result of the due diligence reviews. The Finding of Completion allows the
placement of loan agreements between the Dissolved RDA and the City [which were previously
voided by operation of law upon the Dissolved RDA's dissolution] on the ROPS. On
February 23, 2015, the Oversight Board approved Resolution ❑B-114, making the finding to
reestablish the City loans as enforceable obligations of the SARDA. DOF subsequently
approved this action on April 10, 2015. When the repayments begin, 20% of each repayment
amount will be allocated to the Housing Asset Fund. At June 30, 2019, the long-term advances
totaled $16,655,000 (the "Advances"). In the financial statements $8,655,000 is reported in the
General Fund and $8,000,000 is reported in Other Governmental Funds. An offset of 20% has
been reported as due to other funds in the respective funds totaling $3,331,000, 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%. No interest on the Advances has been
paid since December 31. 2010. Based on the 3% simple rate, the unpaid accrued interest on
the Advances as of June 30, 2019 totaled $4,247,025.
The State Controller of the State of California 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.
The SARDA's use and disposition of all properties held (Long Range Property Management
Plan CLRPMP"), 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 Judgment
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.
Wel
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 19: Dissolution of California Redevelopment Agencies and Wind -Down by Successor
Agencies (Continued)
The judgment. as amended (the "Judgment"), 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 Low and Moderate
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 has been eliminated upon the dissolution
of the Dissolved RDA and the requirement to deposit the Housing Set -Aside into such fund,
the SARDA continues to recognize the Judgment as its enforceable obligation. On its BOPS.
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, the SARDA filed an action, SARDA to the Palm Desert Redevelopment
Agency v. Michael Cohen, Sacramento Superior Court Case No. 34-2014-00167698
(the "Successor Agency Lawsuit"), 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, 2019, was as follows.
Advances From Advances To Amount
General Fund Successor Agency $ 8,655.000
Other Gc*mmental Funds Successor Agency 8,000.000
Housing Asset Fund Successor Agency 630,750
$ 17,285,750
m
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 Moderate Housing Fund
made advances to the Dissolved RDA for the purpose of covering the SERAF payment. Both
SERAF and City Loans were approved by both the Oversight Board and DOF as enforceable
obligations of the SARDA. The initial repayments of the SERAF loan have been included and
approved with the 15-16A ROPS period.
The advances repayable to City Funds are to be repaid with a defined schedule over a
reasonable term of years, are subject to a formula distribution pursuant to HSC Section
34191.4, and have a lower priority for repayment relative to the repayment of SERAF loans.
The advances related to the borrowing for the SERAF payment have a priority over repayment
of the other advances. 20% of the repayment of the other advances not related to the SERAF
advances shall be deducted and transferred to the Housing Asset Fund (Housing Authority, as
Housing Successor).
Balance at Balance at
July 1, 2018 Additions [Deletions June 30, 2019
Capital assets, not being depreciated:
Land 34,933,959 $ $ 10,042,118 $ 24.891,841
Total capital assets, notbeing depreciated 34,933.959 10,042,118 24,891,841
Capital assets, being depreciated:
Buildings and improvements 1,264.879 1,264,879
Total capital assets. being depreciated 1,264,879 1.264,879
Less accumulated depreciation for:
Buildings and improvements 366,728 21,659 388,387
Total accumulated depreciation 366,728 21,659 388,387
Total capital assets being depreciated, net 898,151 21,659 876,492
Capital assets, net $ 35,832,110 $ 21,659 $ 10,918.610 $ 24,891.841
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2019, was as follows
Balance Additions) Repayments) Balance Due Within
July 1, 2018 Accretion Reductions June 30, 2019 One Year
Project Area No. 2
2003 TAR13s, $15,745,000 $ 15,745,000 $ S - $ 15.745,000 $ -
2017 Tax Allocation Refunding Bonds
2017 A TARBs, $52.390,000 51.005,000 2,740,000 48,265,000 2,730,000
2017 B TARBs, $140,130.000 138,085.000 6,545.000 131,540.000 8,685,000
2017 H-A TARBs, $7,365.000 7.010.000 365.000 6.645.000 380,000
2017 H-B TARBs. $45,815,000 39,045,000 7.560,000 31,485,000 7,680,000
Subtotal 250.890.000 17.210,000 233.680,000 19.475.000
Add- Unamortized bond premium 7.935.751 643.183 7,292,698 -
Less: Llnamortized bond discount (2,141,535) (134.732) (2,006.803) -
Total $ 256,684,246 $ $ 17,718,451 $ 238,965.795 $ 19.475.000
91
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
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 16) 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 "20178 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. 1 2007A Bonds and 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 the Project Area No. 2 2003 Bonds are, Project Area No. 1 2007A
Bonds (prior to the final pay-off in June 2018) 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.
Tax Allocation Refundina Revenue Bonds (Proiect Area No. 1. as amended) 2007 Series A
On January 9, 2007, the Palm Desert Financing Authority issued $32.600,000 Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A. The Palm Desert
Financing Authority loaned the bond proceeds to the Dissolved RDA. The proceeds of the bond
were loaned to refinance a portion of the outstanding obligations of the Dissolved RDA, fund
various redevelopment capital projects within Project Area No. 1, as amended, and pay the
costs associated with the issuance of the bonds. The Series A bonds consist of $32,600,000.
Serial Bonds with interest rates ranging from 3.50% to 5.00% payable semiannually on
October 1 and April 1. Bond maturities began April 1, 2008 and continue annually through 2018.
The 2007 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
were paid off as of June 30, 2019.
92
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 20: Successor Agency Disclosures (Continued)
2003 Series Tax Allocation Revenue Bonds (Project 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
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
2020
$ -
$ 769,006
$ 769,006
2021
769,006
769,006
2022
-
769,006
769,006
2023
-
769,006
769,006
2024
875,000
749,319
1,624,319
2025 - 2029
6,275,000
2,981,347
9,256,347
2030 - 2034
8,595,000
1,117,625
9,712.625
$ 15,745,000
$ 7,924,315
$ 23,669,315
2017 Series A Tax Allocation Refundin4 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.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of ($3,569), which is reported as a deferred inflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $9,247,916
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $7,627,413,
93
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 20: Successor Agency Disclosures (Continued)
Interest rates on the bonds vary from 2.00% to 5.009/o 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, 2019, the outstanding principal balance on the bonds $48.265,000.
The future debt service requirements on the 2017A Bonds are as follows -
Year Ending
June 30,
Principal
Interest
Total
2020
$ 2,730,000
$ 2,331,350
$ 5,061,350
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 - 2029
28,335.000
5,052,375
33,387,375
2030
7,355,000
372,125
7,727.125
Total
$ 48,265,000
$ 15,719,725
$ 63,984,725
2017 Series B Tax Allocation Refundina Bonds
On January 31, 2017, the Successor Agency issued the 2017E 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 2006❑ 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.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of ($414,197), which is reported as a deferred inflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $22,311,587
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $13, 310, 309.
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, 2019. the outstanding principal balance on the bonds is
$131,540, 000.
94
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 20: Successor Agency Disclosures (Continued)
The future debt service requirements on the 2017B Bonds are as follows.
Year Ending
June 30,
Principal
Interest
Total
2020
$ 8,685,000
$ 4,360,800
$ 13, 045, 800
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 - 2029
29, 200, 000
13, 778, 313
42, 978, 313
2030 - 2034
32,035,000
8,321,231
40,356,231
2035 - 2039
21,420,000
1,738,453
23,158,463
2040 - 2042
2,015.000
130,794
2,145,794
Total
$ 131, 540, 000
$ 43, 630, 539
$ 175,170, 539
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.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of $58,238, which is reported as a deferred outflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $1,332,840
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $1,063,959.
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, 2019, the outstanding principal balance an the bonds is $6,645,000.
The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds
are as follows:
Year Ending
,tune 30.
Principal
Interest
Total
2020
$ 380,000
$ 297,119
$ 677,119
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 - 2029
2,645,000
706,719
3,351,719
2030 - 2032
1,925,000
99,641
2,024,641
Total
$ 6,645,000
$ 2,096,930
$ 8,741,930
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS {CONTINUED)
JUNE 30, 2019
Note 20: Successor Agency Disclosures (Continued)
2017 Series H-B Tax Allocation Refundin❑ 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.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of (S353,876), which is reported as a deferred inflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $3,419,425
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $1.617,843.
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 an
October 1. As of June 30, 2019, the outstanding principal balance on the bonds is $31,485,000.
The future debt service requirements on the 2017H-B Bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2020
$ 7,680,000
$ 710,925
$ 8.390,925
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
$ 31,485,000
$ 2.070,187
$ 33,555,187
Note 21: Special Item
During the fiscal year ending June 30. 2019, the City noted a letter from the Department of
Finance of California (the Department) dated May 17, 2019 regarding the Departments review
of the 2019-20 Annual Recognized Obligation Payment Schedule prepared by the Palm Desert
Successor Agency (the Agency). This letter noted the denial of a claimed enforceable
obligation between the City of Palm Desert and the Agency related to an advance issued in
1986. The denial notes the Department's opinion of the support the Agency provided to be
insufficient. The City of Palm Desert continues to believe the advance referred to above is an
enforceable obligation and is properly supported. As a result, the City is continuing to pursue
approval from the Department in regards to the denied advance. Due to the uncertainty of the
collectability of the advance amounting to $6,000,000 in principal and $1.530,000 in related
interest, as of June 30, 2019, the City established an allowance for the related items. This
resulted in a special item in the amount of $7,530.000, which impacted the various funds.
Note 22: 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%) of paid transient occupancy tax
revenues paid to the City by the hotel. For the fiscal year ended June 30. 2019, the City abated
tax increment totaling $249,890 under this agreement.
REQUIRE❑ SUPPLEMENTARY INFORMATION
019
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 (11
TOTAL PENSION LIARIL(TY
Service Cost
Interest
Orfference between Expected and Actual Experience
Changes In Assumptions
Benefit Payments. Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Begi an in
Total Pension Liability • Ending (al
PLAN FIDUCIARY NET POSITION
Contributions - Employer
Contributions -Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Administrative Expense
Net Plan to Plan Resource Movement
Other Miscellaneous lncomer(Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan fiduciary Net Position - Ending (b)
Plan Net Pension Liabilityr(Assets) • Ending 1a) -1b)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered Payroll
Plan Net Pension Liabilityl(Asset) as a Percentage of Covered
Payroll
lots
2016
2017
2018
2019
5 2.156.598
$
2.125,437
$ 2.076.964
8 2.204265
$ 2.196.462
7,991,591
8.223.320
8,327.823
8.558.529
8.797.867
-
(2,378,254)
(4,259,317)
(1,895,482)
(594.682)
-
(2.091,348)
-
7.367.723
(1,148.708)
(1,282730'
)
(1;
{}
81
01
5, 98,869y
44,218
10,833,504
5,3 16,
107,900,900
5 113,199,769
113,199``769
11A,481,699
1141l481.899
$ 115,826,117
115``826 117
$ 126,6591
126,r659``21
S 129,976,0C2
$ 3,32045D
$
4.065.411
$ 4.257,322
$ 5303.371
$ 5.407.412
995.504
878.171
870.981
828,467
812.447
11.290,314
1,682,498
448,184
8,800,663
7,555.653
(4,849,320)
(4.597.025)
(4,801,252)
(5.401,531)
(5,934,338)
-
(87.279)
(47,263)
(115,573)
(136,651)
(222)
-
-
2%502j
10,756,948
1,941,776
727,972
9,415,397
7,d44,799
64,851,560
75,608,498
7T 550 274
78,278 246
8T,693,643
3 75,608,498
$
77.550.274
$ 7$ 278&6
y 87,693�43
$ 96,138.442
$ 37591,271
AL
$
36,931.625
$ , 37,547,871
$ 38*965.978
$ 34,837,580
66.79%
67-74%
67.58 %
69.24°!
73-70%
$ 11,110,759
S
11,448,621
$ 11,342,713
$ 10,684,238
$ 12,033,485
338.33%
322,59%
331.03%
364-71%
289.51 %
(1) Historical information is required only for measurement for which GAS8 68 is applicable Fiscal Year 2015 was the first year of implementation. therefore only five years are shown
Notes to Schedule:
BenefR Changes The figures above do not Include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for
voluntary benefit changes as well as any offers of Two Years Addilional Service Credit (a k.a Golden Handshakes).
Changes of Assumptions In 2018, demographic assumptions and inflal ion rate were changed in accordance 10 the CaiPERS Experience Study and Review of Actuarial Assumptions
December 2017. There were no changes rn the discount rate. In 2017. the discount rate was reduced from 7.65 percent to 7 15 percent lin 2016, there were no changes In 2015.
amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 765 percent (without a reduction for pension plan administrative
expense.) In 2014. amounts reported were based on the T5 percent discount rate
See Notes to Required Supplementary Information 98
CITY OF PALM DESERT
MISCELLANEOUS PLAN • AGENT MULTIPLE -EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Actuarially Determined Contribution
Contribution in Relation to the Acluarially Determined Contribution
Contfibuhon Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
2015
2016
2017
2018
2019
$ 3, 393,171
$ 3,585.082
$ 3.550.127
$ 4.219764
$ 4 225, 204
14.065.4111
(4,257,322)
I5,303,3711
(5,396,908)
i5.%3,7371
$ (672.240)
$ [672.240i
$ (1,753.2441
$ (1,177,144)
$ (1,738,533�'
$ 11448.621
$ 11.342,713
$ 10.6&1,238
$ 12.033.485
$ 11,334.909
35 51 %
37.53%
49.64%
44.85%
52.61 %
(1) Historical information is required only for measurement for which GASS 66 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only five
years are shown.
Nate to Schedule
V a luat ion Date:
Methods and assumptions used to determine contribution rates
Actuarial cost method
Amortization methadlperiod
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality
June 30, 2016
Entry age normal
Level percentage of payroll, closed
Market value
2.75%
Varies by entry age and sepace
3.00%
7.50% net of pension investment and administrative
expenses, including inflation
The prolbabdities of retirement are based on the 2014
CalPERS Experience Study for the period from 1957 to
2011.
The probabilities of retirement are based on the 2014
CalPERS Experience Study for the period from 1997 to
2011. Pre -retirement and posttalirement mortality rates
include 20 years of projected mortality improvement using
Scale 88 oublished by the Societv of Actuaries
See Notes to Required Supplementary Information 99
CITY OF PALM DESERT
SCHEDULE OF CHANGES IN THE NET 0PEB LIABILITY AND RELATED RATIOS
AS OF DUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Total OPEB Liability
2018
2019
Service cost
Interest on the total OPEB liability
$
346,417
$
357,675
Benefit payments
1.144.106
1.199.747
Net change in total 0PEB liability
{653,187)
37,336
[696.845)
Total OPEB liability - beginning
60,577
Total OPEB liability - ending (a)
16,980,271
17,817,607
$
17,817,607
$
18,678,184
Plan Fiduciary Net Position
Contribution -employer
Net investment income
$
1.255,960
$
1,381,501
Benefit payments
9D2.331
843,319
Administrative expense
(653,187)
(69 fi,846)
Other Expenses
{6,541J
[7.371]
Net change in plan fiduciary net position
(18,115)
Plan fiduciary net position - beginning
1,498,563
1,502,489
Plan fiduciary net position - ending (b)
$
12,198,460
13,697,023
13,697,023
5
15,199.512
Net OPES Liabilityl(Assets) - ending (a) - (b)
$
4,120,584
$
3,478,672
Plan fiduciary net position as a percentage of the total OPEB liability
76,87%
81.38%
Covered -Employee payroll
$
10,584,400
$
10,749,431
Net OPEB liability as a percentage of covered -employee payroll
38.93%
32.36%
(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 100
CITY OF PALM DESERT
SCHEDULE OF CONTRIBUTIONS - OPEB
AS OF JUNE 30T FOR THE LAST TEN FISCAL YEARS (1)
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered -Employee payroll
Contributions as a percentage of covered -employee payroll
2018 2019
$ 520,620 $ 455,021
(1,217,465 2,211.778)
S (696,84 1,756,767J
10.741,786 $ 10,546.052
11.33% 20.97%v
(1) Historical information is required only for the measurement periods for which GAS 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:
Actuariat Cost Method
Amortization Valuation Method/Period
Asset Valuation Method
Inflation
Payroll Growth
Investment Rate of Return
Healthcare cost -trend rates
Retirement Age
Mortality
Change Since the Prior Valuation:
Entry Age Normal
Level percent of payroll over a closed rolling 30-year period
Market value of assets
2.75%
3,25% per annum. in aggregate
6.73% per annum
7.50%. Medical plan premiums and claims costs by age are
assumed to increase once each year. The required PEMHCA
minimum employer contribution (MEC) is assumed to increase
annually by 4.5%.
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 rates used were those published by Ca(PERS. adjusted
to back out 20 years of Scale Bt3 to central year 2008. then
projected using the MacLeod Watts Scale 2017 applied
generationally.
None. The beginning of measurement 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 101
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Property taxes
Property transfer tax
Property tax in lieu
Timeshare mitigation fee
Sales tax
Business license tax
Job valuation fees
Transient occupancy tax
Franchises
Penalties and interest on taxes
Total Taxes
Licenses and Permits
Building permits
Grading permits
Encroachment permits
Miscellaneous permits
Business regulatory permits
Golf cart permits
Valet parking permits
Total Licenses and Permits
Intergovernmental
State mandate cost
Motor vehicle in -lieu fees
Monthly parking bail
Reimbursement RDA costs
Other reimbursements
Total Intergovernmental
Rental income
Charges for Services
Subdivision fees
Zoning fees
Plan check fees
Sale of maps and publications
Microfilm fees
Vehicle impact fee
Other fees
Total Charges for Services
Investment Earnings
Interest income
Interest on notes receivable
Total investment Earnings
Fines and Forfeitures
Vehicle code fines
Municipal court fines
VICR fees
Total Fines and Forfeitures
Miscellaneous
Code compliance
Strong motion instrument fee
Special investigation fee
Certificate of compliance fee
Nuisance abatement tax
Abandoned vehicle abatement
Fire inspection service
Other revenue
Total Miscellaneous
Transfers in
Amounts Available for Appropriations
Budget Amounts
Ori final Final
F 90, 70.548 $ 90,370.548
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 90.370,548 5
7,163,171
7.433,171
6.855.643
(577,528)
600.000
600.000
727,978
127,978
4.000.000
4.OD0,000
4,218.564
218.564
1,615.OD0
1.615.000
1.678,375
63,375
18,500,000
21.400,000
21,434,387
34.387
1.275,00D
1.275.000
1.216.712
(58.288)
12,D00
12.000
27,670
15,670
14,9213,000
17.250,000
17.250.843
843
3.150.000
3.150.000
3.078,855
(71,145)
35,000
35,000
153.543
118,543
51.270,171
56.770.171
56.642.570
(127,601)
370.000
1, 050, 000
1.052.911
2,911
20.000
20,000
11,160
(8,840)
90,000
90.000
108.321
18,321
1.500
1,500
1.795
295
35,000
35.000
27,635
(7,365)
-
-
2,280
2280
50D
500
550
50
517.000
1.197.000
1,204,652
7,652
-
-
57.393
57,393
21,DOD
21,000
25,329
4,329
15.000
15,000
14.205
(795)
750.000
750.000
829.498
79,498
905.000
905,000
638.853
f266,147)
1,691.000
1,691,000
1.565.278
{125.722)
166,000
166.000
215.854
49,854
200.000
400.000
400.926
926
175.000
175.000
75.850
(99.150)
271,000
611.000
619,763
8,783
3.500
3.500
3,604
104
5.000
5.000
7.996
2.996
480.000
617,D00
617.023
23
125.500
125.500
154.910
29,410
1.260.000
1.937,000
1.850,072
(56,928)
675.000
1,775.9D0
2,463,258
688.258
175.000
175,000
209.385
34,385
850.000
1.950,000
2.672.643
722.643
20.000
20,000
38.254
18,254
20.000
152.000
152,039
39
75.000
75.000
76,912
1,912
115.000
247,000
267,205
20,205
13,000
13,000
106.600
93,600
35
35
3,50D
3.500
-
(3,500)
1.675
1,675
375
(1,300)
30.000
30,000
28,326
(1,674)
50,000
50,000
37,496
(12.504)
225,000
225,000
666
(224,334)
90,000
90.000
99,938
9,938
413.175
413,175
273.436
(139,739)
7.730,05D
940.050
937.202
{{2.848)
148,382,944
155,681,944
156,029,460
g 7,516
See Notes to Required Supplementary Information 102
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2019
Charges to Appropriation (Outflow):
General Govemment
City Council
City Clerk
Legislative Advocacy
Elections
City Attorney
Legal Special Services
City Manager
Community Services
Finance
Independent Audit
Human Resources
General Services
Information Technology
Unemployment insurance
Insurance
Retiree Funding
Contributions to other Agencies
Community Promotions
Marketing
Visitors Information Center
Economic development Center
Planning & Community Development
Total General Government
Public Safety
Police Services
Animal Regulation
Traffic Safety
Building and Safety
Community Safety
Total Public Safety
Parks, Recreation and Culture
Civic Center Park
Park Maintenance
Landscaping Service
Civic Center Park - Improvement
Total Parks, Recreation and Culture
Public Works
Administration
Street Maintenance
Curti & Gutter
Parking Lot
Corporate Yard
Auto Fleet I Equipment
Public Bldg - OprlMaint.
Portola Community Center
Storm Water Permit
Total Public Works
Capital outlay
Transfers out
Special Item
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
281,205
281,205
249,690
31,516
884,220
884,220
874,941
9,279
36,200
36,200
36,180
20
75,000
82100
82,036
64
267,800
271,100
271,006
94
280,000
349,200
349,143
57
760.880
760,880
647,471
113,409
451.145
92,102
87,390
4,712
1,711,250
1,727,650
1,727,485
165
90,000
97,390
77,995
19,394
901,485
915,160
901.643
13,517
3,856,800
5.731,865
5,700,555
31,300
1.034.847
1,045.041
976,248
68,793
10,000
10,000
-
10,000
698,000
660,000
539,297
120,703
-
3,710,406
3,710,405
-
608,500
568,450
545,725
22,725
1,245.000
1,249, 700
1,249,674
26
1,413,230
1,421.894
1,181,029
240,865
181.190
190,290
190,241
49
777,150
783,596
752,128
31,468
2,316,950
2,499,450
2,498.912
538
17,880,852
23,367,889
22,649.196
718,693
21,933,600
20,433,600
20,375,047
58,553
245,000
245,000
221,008
23,992
253,600
261,021
219,770
41,251
1,715,500
1,828,416
1,828.083
333
404,000
404,000
159,207
244,793
24,551.700
23,172,037
22,803,115
368,922
1.187,860
1,219,073
1,191.822
27,251
1,025.200
1,031,248
844,697
186,551
2,001,500
1,969,316
1,802,109
167,207
224,000
474,993
77,080
397,913
4.438,560
4,694.630
3,915,708
778.922
2.499, 600
2,178, 998
2,149, 715
29,283
2.216.850
2.216,850
2.185,648
31,202
25,000
10,000
-
10,000
50,000
50,000
11,316
38,684
81,500
105,800
105.770
30
263,000
264,065
241,972
22,093
715.300
715,300
712,753
2,547
75,000
133,000
132,936
64
60,000
60,000
46,222
13,776
5.986.250
5,734,013
5,586.332
147,681
-
2,948,000
2,946.581
1,419
5.152, 251
4,620, 845
4, 620, 658
187
-
464,800
464,800
58,009,613
66,002.214
62.986,390
2,015,824
$ 90,373,331
$ 90,679.730
$ 93,043,070
$ 2,363,340
See Notes to Required Supplementary Information 103
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 21,970,019
$ 21.970,019
$ 21,970,019
$ -
2,798,000
2,798,000
2,928,433
130,433
-
-
400,637
400,637
100,000
100,000
650,593
550,593
24,868,019
24,868,019
25,949,682
1,081,663
3,050,000
3,573,340
824,994
2,748,346
400,000
24,539,081
-
24,539,081
3,450,000
28,112,421
824,994
27,287,427
$ 21,418,019
$ (3,244,402)
$ 25,124,688
$ 28,369,090
See Notes to Required Supplementary Information 104
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Assessments
Intergovernmental
Charges for services
Investment earnings
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow);
Public safety
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 1,865,067 $ 1,895,067
5,909,280
2,115,800
1,050,000
1,200, 000
10,000
15,500
2,300,000
14,495,647
13,105,600
50,000
13,155,600
5,909,280
2,115,800
1,050,000
1,200,000
10,000
15,500
2,300,000
14,495,647
13,911,495
50,000
13,961,495
Actual
Amou nts
$ 1,895,067
6,036.130
2,730,402
1,151,283
2,121,193
36,209
187,673
2,300,000
16,457,957
13,945,153
11,323
13,956,476
Variance with
Final Budget
Positive
(Negative)
126,850
614,602
101,283
921,193
26,209
172,173
1,962,310
(33,658)
38,677
5,019
$ 1,340,047 $ 534,152 $ 2,501,481 $ 1,967,329
See Notes to Required Supplementary Information 105
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING ASSET FUND
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Housing and redevelopment
Capital outlay
Special item
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 47,315,296
$ 47,315,296
$ 47,315,296
$ -
180-000
180-000
908,527
728,527
-
-
30,285
30,285
47,495,296
47,495,296
48,254,108
758,812
449,800
170,800
195,902
(25,102)
25,500
25,500
-
25,500
-
1.200,000
1,200,000
-
475,300
1,396,300
1,395,902
398
$ 47,019,996
5 46,098,996
$ 46,858,206
$ 759,210
See Notes to Required Supplementary Information 106
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUKE 30, 2019
Budgetary Fund Balance, July 1
Resources (inflows):
Rents
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Housing and redevelopment
Capital outlay
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
❑7inal
Final
Amounts
(Negative)
$19,978,003
$ 19,978,003
$19,978,003
$ -
6,874,666
5,999,068
6,684,062
684,994
-
875,598
156,385
(719,213)
100,000
100,000
422,030
322,030
26,952,669
26,952,669
27,240,480
287,811
10,741,934
12,741,934
6,801,108
5,940,826
-
1,772,248
20,912
1,751,336
544,170
544,170
478,698
65,472
11,286,104
15,058,352
7,300,718
7,757,634
$15,666,565 $ 11,894,317 $ 19,939,762 $ 8,045,445
See Notes to Required Supplementary Information 107
CITY OF PALM DESERT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2019
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. 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
Assessment 29
108
OTHER GOVERNMENTAL. FUNDS
COMBINING STATEMENTS
109
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2019
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Due from other funds
Inventories
Restricted assets:
Cash and investments with fiscal agents
Advances to Successor Agency
Allowance for Advances to Successor Agency
TOTAL ASSETS
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid casts
Restricted for:
Public safety
Capital Projects
Debt service
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Special
Capital
Revenue
Projects
Funds
Funds
$ 24,127,978
$ 15,755,111
697,737
100
2,689,160
-
232,680
2,631,330
(133.416)
(972,060)
33
4,600
441,271
-
-
500,000
5,105
_
2,045,860
654,000
12,765,000
(654,000)
(4,765,000)
$ 28,0601548
$ 27,964,941
Total Other
Debt Service
Governmental
Fund
Funds
$ 176.872
$ 40,059,961
-
697,837
1,172,053
1,172.053
-
2,689,160
2,864,010
-
(1,105,476)
-
4,633
4,896
446,167
-
500,000
-
5,105
-
2,045,860
13,419,000
-
(5,419,000)
1 1,353,821 $ 57,379,310
$ 432,598
$ 125,854
$
$ 558,452
6,897
-
6,897
271.613
63,041
-
334,654
33,495
24,000
109,526
167,021
1,844,000
1,600,000
-
3,444,000
2,588,603
1,812,895
109,526
4,511,024
99,264
1,632,000
1,172,053
2,903,317
99,264
1,632,000
1,172,053
2,903,317
33
4,600
-
4,633
1.590.742
-
-
1,590,742
-
2,059,480
-
2,059,480
-
-
72,242
72,242
5,540.593
-
-
5,640,593
3.026,646
-
-
3.026.646
4,401,769
-
-
4.401,769
6,440,734
1,217,695
-
7,658,429
2,134,436
-
-
2.134,436
2,237,728
-
-
2,237,728
-
8,893,084
-
8.893,084
-
420,387
-
420,387
9,117,365
-
9,117,365
670,576
-
670,576
2,136,859
-
2,136,859
25,372,681
24,520,046
72,242
49,964,969
$ 28,060,548 $ 27,964,941 $ 1,353,821 $ 57,379.310
110
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPEND{TURFS AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDE❑ JUNE 30, 2019
REVENUES:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks. recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service
Principal retirement
Interest and fiscal Charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Special
Capital
Total Other
Revenue
Projects
Debt Service
Governmental
Funds
Funds
Fund
Funds
$ 1,495,052
$
$
$ 1,495,052
1,103,533
-
114,222
1,217,755
-
212,177
212,177
2,817, 715
102,854
2,920.569
1,222,020
-
-
1,222,020
735,251
469,240
4,375
1,208,866
6,229
-
6,229
8,189
2.393,357
-
2,401.545
7,387,989
3,177,628
118,597
10,684,214
816,201
791,321
10,828
1,618,350
97,386
55,629
-
153,015
1,663,298
1,018,385
2,561,683
1,245,538
158,657
1,404,195
507,109
-
-
547,109
243,365
137,925
-
381.290
529,000
-
58,000
587,000
175,155
-
68,895
244,050
5,177,052
2,161,917
137,723
7,476,692
2,210,937
1,015,711
(19,126)
3,207,522
1.282,246
800.000
2,082,246
(480,958)
(156,244)
-
(637,202)
801,288
643,756
-
1,445,044
(523,200)
(3,812,000)
(4,335,200)
2,489,025
(2,152,533)
(19,126)
317,366
22.883.656
26,672.579
91,368
49,647,603
$ 25,372,681
$ 24,520,046
$ 72,242
$ 49,964,969
111
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112
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.
Housing 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 Program Fund — This fund is used to collect funds from developers for the purpose of
providing child care programs.
Public Safety 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 personlentity 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 Sionals 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.
Recvclina 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.
113
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Enerqv Indeoendence 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.
Aauatic Center Fund — This fund is used to account for revenues and expenditures for the City's aquatic
facility.
Cannabis Comoliance Fund. — This fund is used to account for revenues and expenditures for the City's
cannabis compliance activity.
El Paseo Assessment District Fund. — This fund is used to collect assessments on all business
establishments located within the boundaries set for the El Paseo Parking and business improvement
area based ❑n 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 Liahtina 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.
Former RDA Low Income Housina Fund. — This fund is used to account for the management and
operation of the City's housing assets.
114
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115
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2019
Community
Housing
Development
Traffic Safety
Gas Tax
Mitigation Fee
Block Grant
ASSETS:
Pooled cash and investments
$
5 3,167,010
$ 3,167,970
$ 38,817
Receivables:
Accounts
Loans
-
-
500
Interest
-
Allowance for interest on Successor Agency
_
Prepaid costs
Due from other governments
307
259,442
166.104
Inventories
Advances to Successor Agency
_
Allowance for Advances to Successor Agency
_
_
-
TOTAL ASSETS
$ 307
$ 3,426,452
$ 3,167,970
$ 205,421
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
$
$
$ 316
$ 166,104
Accrued liabilities
Unearned revenues
-
-
141,008
Deposits payable
_
Due to other funds
TOTAL LIABILITIES
-
141,324
166,104
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid costs
_
Restricted for:
Public safety
Street related purposes
307
3,426,452
-
Low income housing
-
-
3,026,646
Public facilities
Special programs
Committed to:
-
-
39,317
Aquatic venter
Energy loan program
-
TOTAL FUND BALANCES
307
3,426,452
3,026,646
39,317
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$ 307
$ 3,426,452
$ 3,167,970
$ 205,421
116
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2019
(CONTINUED)
New
Child Care
Public Safety
Construction
Planned
Program
Police Grants
Tax
Drainage
ASSETS:
-
Pooled cash and investments
$ 1,396,599
$ 91,196
5 1,342,716
$ 1,617,656
Receivables:
Accounts
_
Loans
Interest
133,416
Allowance for interest an Successor Agency
(133,416)
Prepaid costs
_
Due from other governments
Inventories
Advances to Successor Agency
654,000
Allowance for Advances to Successor Agency
-
(654,O00)
-
TOTAL ASSETS
$ 1,396,599
$ 91,196
$ 1,342,716
$ 1,617,656
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
$
5 6,917
$
$
Accrued iiabilities
Unearned revenues
73,471
-
Deposits payable
_
Due to other funds
_
TOTAL LIABILITIES
_
80,388
_
DEFERRED INFLOWS OF RESOURCES. -
Unavailable revenues
Total Deferred inflows of Resources
_
FUND BALANCES:
Nonspendable:
Prepaid costs
_
_
Restricted for:
Public safety
10,808
-
Street related purposes
-
-
1,617,656
Low income housing
_
Public facilities
1,396,599
1,342,715
-
Special programs
-
_
Committed to:
Aquatic center
Energy loan program
_
_
-
-
TOTAL FUND BALANCES
1,396,599
10,808
1,342,716
1,617,656
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$ 1,396,599
$ 91,196
$ 1,342,716
$ 1,617,656
117
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2019
Parks and
Recreational
Fire Facilities
ASSETS:
Facilities
Traffic Signals
Restoration
Recycling
Pooled cash and investments
$ 1.664,030
S 498.038
S 1.153.479
S 2.625,358
Receivables:
Accounts
Loans
65 918
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
-
Advances to Successor Agency
Allowance for Advances to Successor Agency
_
_
TOTAL ASSETS
$ 1,664,030
$ 498,038
$ 1,153,479
$ 2,691,276
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
S 1.576
S 1.860
5
$ 39,632
Accrued liabilities
Unearned revenues
"
Deposits payable
_
_
25,030
Due to other funds
TOTAL LIABILITIES
1,576
1,860
85,662
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Street related purposes
-
-
496178
1.153,479
Low income housing
Public facilities
1-662.454
_
Special programs
Committed to:
-
2.625.614
Aquatic center
Energy loan program
-
-
TOTAL FUND BALANCES
1,662,454
496,178
1,153,479
2,625,614
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$ 1,664,030
$ 498,038
$ 1,153,479
$ 2,691,276
118
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2019
Energy
(CONTINUED)
Independence
Air Quality
Aquatic
Cannabis
Loan
Management
Center
Compliance
ASSETS:
Pooled cash and investments
$ 1,392,558
$ 133,206
$ 1,846,324
$ 301,150
Receivables:
Accounts
-
17,744
454,775
158,800
Loans
2,689,160
-
-
-
Interest
99,264
-
Allowance for interest on Successor Agency
.
Prepaid costs
_
Due from other governments
-
_
Inventories
-
5,105
Advances to Successor Agency
_
Allowance for Advances to Successor Agency
-
.
_
-
TOTAL ASSETS
$ 4,180,992
$ 150,950
$ 2,306,204
$ 459,950
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
$
$ 13,308
$ 140,664
$
Accrued liabilities
Unearned revenues
31,104
-
Deposits payable
-
-
33,495
Due to other funds
1,844,006
-
_
TOTAL_ LIABILITIES
1,844,000
13,308
171,768
33,495
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
99.264
-
-
-
Total Deferred Inflows of Resources
99,264
_
FUND BALANCES:
Nonspendable:
Prepaid costs
-
Restricted for:
Public safety
426,455
Street related purposes
-
Low income housing
_
Public facilities
_
Special programs
137,642
-
Committed to:
Aquatic center
-
-
2,134,436
-
Energy loan program
2.237.728
-
_
TOTAL FUND BALANCES
2,237,728
137,642
2,134,436
426,455
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$ 4,180,992
$ 150,950
$ 2,306,204
$ 459,950
119
CITY OF PALM DESERT
COM3INING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2019
Landscape
EI Pase❑
and Lighting
Former RDA
Total Other
Assessment
Districts Nos.
Low Income
Special Revenue
ASSETS:
District
1 - 17
Housing
Punds
Pooled cash and investments
S 82.658
S 3.602,306
S 6,897
S 24,127,978
Receivables
Accounts
Loans
697,737
Interest
689,160 2.
Allowance for interest on Successor Agency
232.680
Prepaid casts
33
(133.416)
Due from other governments
-
-
15,418
33
441,271
Inventories
Advances to Successor Agency
Allowance for Advances to Successor Agency
-
654.000
-
-
(654,000)
TOTAL ASSETS
$ 82,691
$ 3,617,724
$ 6,897
$ 28,060,548
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
S 12.509
S 49,712
$
5 432.598
Accrued liabilities
Unearned revenues
-
-
6,897
6,897
Deposits payable
-
-
-
271,613
Due to other funds
-
33,495
-
1.844.000
TOTAL LIABILITIES
12,509
49,712
6,897
2158803
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
-
-
99,264
Total Deferred Inflows of Resources
99,264
FUND BALANCES:
Nonspendable:
Prepaid costs
33
Restricted for. -
33
Public safety
Street related purposes
-
1.590,742
Low income housing
5.540.593
Public facilities
-
3.026,646
Special programs
70.149
3.568.012
-
4.401.769
6.440.734
Committed to:
Aquatic center
Energy loan program
-
-
2,134A36
-
2237.728
TOTAL FUND BALANCES
70,182
3,568,012
-
25,372 681
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$ 82,691
$ 3,617,724
$ 6,897
$ 28,060,548
120
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121
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Housing Community
Mitigation Development
Traffic Safety Gas Tax Fee Block Grant
$ - $ - $ 113,651 $ -
2,244,980 311,059
58 48,642 82,608 433
6,229 _ -
7,374
6,287 2,293,622 196,259 318,866
311,059
443,274 - _
- 28,411 _
- 443,274 28,411 311,059
6287 1,850,348 167,848 7,807
(6.644)
(6,644) _
(357) 1,850,348 167,948 7,807
664 1,576,104 2,858,798 31,510
$ 307 $ 3,426,452 $ 3.026,646 $ 39,317
122
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Taxes
Special assessments collected
Intergovernmentai revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(CONTINUED)
Public
New
Child Care
Safety Police
Construction
Planned
Program
Grants
Tax
Drainage
$ 25,499
$ -
$ 174,981
$ 38,855
-
181,083
38,272
2,428
34,416
44,607
63,771
183,511
209,396
83,462
53,020
86,385 - 5,643
181,083 - 58,663
63,771 2,428 209,396 24,799
- - (523,200) -
63,771 2,428 (313,804) 24,799
1,332,828 6,380 1,656,520 1,592,857
$ 1,396,599 $ 10,808 $ 1,342,716 $ 1,617,656
123
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2019
Parks and
Fire
Recreational
Traffic
Facilities
REVENUES:
Facilities
Signals
Restoration
Recycling
Taxes
$ 247,187
$ 91,274
$ 13,655
$ -
Special assessments collected
-
Intergovernmental revenues
Charges for services
-
-
-
12,149
Investment earnings
-
44,722
-
12,501
-
31,653
428,418
70,802
Fines and forfeitures
Miscellaneous
-
-
286
TOTAL REVENUES
291,909
103,775
45,308
511,654
EXPENDITURES:
Current:
General government
Public safety
-
-
-
190,084
Parks, recreation and culture
Public works
-
-
-
17,915
-
-
23,804
36,514
Housing and redevelopment
-
_
Capital outlay
45.862
-
-
-
1 D5,475
Debt service:
Principal retirement
_
Interest and fiscal charges
-
-
TOTAL EXPENDITURES
45,862
17,915
-
355,877
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
246,047
85,860
45,308
155,777
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
-
-
(24,289)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
246,047
85,860
45,308
131,488
FUND BALANCES - BEGINNING OF YEAR
1,416,407
410318
1,108,171
2,494,126
FUND BALANCES - END OF YEAR
$ 1,662,464
$ 496,178
$ 1,153,479
$ 2,625,614
124
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES {USES]
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(CONTINUED)
Energy
Independence
Air Quality
Aquatic
Cannabis
Loan
Management
Center
Compliance
$
$
$ -
$ 789,950
-
68,444
-
-
793,602
-
205,476
3,629
35,955
2.968
205,476
72,073
829,557
792,918
5.490
61.773
-
-
-
-
2.688
1.539.494
-
529,000
-
175,155
-
-
-
709,645
61,773
1,539,494
2,688
(504,169)
10,300
(709.937)
790,230
-
709.937
-
-
(450,025)
-
709,937
(450,025)
(504,169)
10,300
-
340,205
2.741,897
127,342
2,134,436
86.250
$ 2,237,728
$ 137,642
$ 2,134,436
$ 426,455
125
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Landscape
El Paseo and Lighting
Assessment Districts Nos.
District 1 - 17
251,258 852,275
1,883 74,199
- 530
253,141 927,004
Former RDA Total Other
Low Income Special Revenue
Housinq Funds
$ - $ 1,495,052
- 1,103,533
- 2,817,715
- 1, 222, 020
- 735,251
- 6,229
8,189
7,387,989
247,795 816,201
- 97,386
1,563,298
- 694.815 - 1,245,538
- 478,698 507,109
- - - 243,365
529,000
- - - 175,155
247,795 694,815 478,698 5,177,052
5,346 232,189
- 93,611
93,611
5,346 325,800
64,836 3,242,212
$ 70,182 $ 3,568,012 $
(478,698) 2,210,937
478,698 1,282,246
- (480.956)
478,698 801,288
(523,200)
2,489,025
22,883,656
$ 25,372,681
126
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUKE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Fines and forfeitures
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 664 $ 664
50
30,000
30,714
30,050
30,050
$ 664
50
30,000
30,714
30,050
30,050
664
Actual
Amounts
$ 664
58
6,229
6,951
6,644
6,644
$ 307
Variance with
Final Budget
Positive
(Negative)
8
(23,771)
(23,763)
23,406
23,406
$ (357)
127
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GAS TAX
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Ori plinal
Final
$1,576,104
$ 1,576,104
1,957,500
1,957.500
10,000
10,000
3,643,604
3,543,604
1,000,000
2,812,068
11000,000
2,812,068
$ 2,543,604 $ 731,536
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 1,576,104
$ -
2,244,980
287,480
48,642
38,642
3,869,726
326,122
443,274
2,368,794
443,274
2,368,794
$ 3,426,452
$ 2,694,916
128
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING MITIGATION FEE
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,858,798
$ 2,858,798
$ 2,858,798
$ -
Resources (Inflows):
Taxes
145,500
145,500
113,651
(31,849)
Investment earnings
25,000
25,000
82,608
57,608
Amounts Available for Appropriations
3,029,298
3,029,298
3,055,057
25,759
Charges to Appropriation (Outflow):
Housing and redevelopment
310,000
310,000
28,411
281,589
Total Charges to Appropriations
310,000
310,000
28,411
281,589
Budgetary Fund Balance, June 30
$ 2,719,298
$ 2,719,298
$ 3,026,646
$ 307,348
129
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30, 2019
ASSETS:
Pooled cash and investments
Receivables.
Accounts
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other funds
Restricted assets:
Cash and investments with fiscal agents
Advances to Successor Agency
Allowance for Advances to Successor Agency
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable
Unearned revenues
Deposits payable
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
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
CFD
University
Total Other
Special
Capital Projects
Assessment
Assessment 29 Funds
$
$ 670 $ 15.755,111
- 100
11,961
2,631, 330
-
(972,060)
4,600
-
500,000
1,859.938
2,045,860
-
12, 765, 000
-
- (4.765,000)
$ 1,871,899
$ 670 $ 27,964,941
$ $ $ 125.854
63,041
24,000
1,600,000
1,812,895
1,632,000
1,632,000
- - 4,600
1,871,899 670 2,059,480
- - 1.217.695
8,893,084
420,387
9.117,365
670.576
2,136, 859
1,871,899 670 24,520,046
$ 1,871,899 $ 670 $ 27,964.941
151
�iY�I•I��_l�,',�■7��� it
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Licenses and permits
Intergovernmental revenues
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Capital
Projects
Drainage
Reserve
Facilities
72,759
56,872
72,759
56,872
Parks and
Economic Recreational
Development Facilities
102,854
19,711 2,215
122,565 2,215
400,000 203,056
6,848 - -
63,073 - 27,265
653 83,365 -
106, 925 -
577,499 83,365 203,056 27,265
(504,740) (26,493) (80,491) (25,050)
800,000
800,000
(3,812,000)
295,260 (26,493) (80,491) (3,837,050)
9,018,211 2,056,805 737,119 3,897,380
$ 9,313,471 $ 2,030,312 $ 656,628 $ 60,330
152
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Licenses and permits
Intergovernmental revenues
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current.
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(CONTINUED)
Art in Public
Places Signalization Capital Golf Buildings
$ 212,177 $ $ $
38,898 2,938 128,720 88,198
4,676 - 2,388,681 -
255,751 2,938 2,517,401 88,198
188,265
- - 48,781
246,090 657,435 24.522
- - 47,873
15,000 16,000
261,090 - 657,435 325,441
(5,339) 2,938 1,859,966 (237,243)
(156,244)
(156,244) -
(161,583) 2,938 1.859,966 (237.243)
1,383,878 103,609 3,502,886 3,274,798
$ 1,222,295 $ 106,547 $ 5,362,852 $ 3,037,555
153
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2019
REVENUES:
Licenses and permits
I ntergovem mental revenues
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
SPECIAL ITEM (NOTE 21)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Assessment
District No. 94- Silver Spur Highlands
Library 3 Merano Ranch Undergrounding
3,321 3,960 14
3,321 3,960 14
3,321 3,960 14
3,321 3,960 14 -
667,255 182,312 604 21
$ 670,576 $ 186,272 $ 618 $ 21
154
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2019
CFD
University
Special
Total Other
Assessment
Assessment
Capital Projects
District
29
Fund
REVENUES:
Licenses and permits
$
$
$ 212,177
Intergovernmental revenues
102,854
Investment earnings
51,619
15
469,240
Miscellaneous
-
-
2,393,357
TOTAL REVENUES
51,619
15
3,177,628
EXPENDITURES:
Current.
General government
-
-
791,321
Public safety
55,629
Parks, recreation and culture
-
1.018.385
Public works
26,766
158,657
Capital outlay
-
137,925
TOTAL EXPENDITURES
26,766
-
2,161,917
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
24,853
15
1,015,711
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
800.000
Transfers out
(156.244)
TOTAL OTHER FINANCING
SOURCES (USES)
643,756
SPECIAL ITEM (NOTE 21)
-
(3,812,000)
NET CHANGE IN FUND BALANCES
24,853
15
(2,152,533)
FUND BALANCES - BEGINNING OF YEAR
1,847,046
655
26,672,579
FUND BALANCES - END OF YEAR
$ 1,871,899
$ 670
$ 24,520,046
155
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROPERTIES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Parks and recreation
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 68,754,748 $ 68,754,748
300,100 300,100
69,054,848 69,064,848
- 250,000
5,850,000 28,654,133
5,850,000 28,904,133
$ 63,204,848 $ 40,150,715
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 68,754,748
$ -
1,267,229
967,129
70,021,977
967,129
2,000
(2,000)
-
250,000
912,833
27,741,300
36,405
(36,405)
951,238 27,952,895
$ 69,070,739 $ 28,920,024
156
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS RESERVE
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Investment earnings
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$ 9,018,211
$ 9,018,211
1,912,000
1,912,000
14,000
14,000
200,000
200,000
11,144,211
11,144,211
400,000
400,000
-
75,000
475,000
475,000
100,000
1,111,701
50,000
1,963,119
1,025,000
4,024,820
$ 10,119,211 $ 7,119,391
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 9,018,211 $ -
(1,912,000)
72,759 58,759
800,000 600,000
9,890,970 (1,253,241)
400,000
-
6,848
68,152
63,073
411,927
653
1,111,048
106,925
1,856,194
577,499
3,447,321
$ 9,313,471
$ 2,194,080
157
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
DRAINAGE FACILITIES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 2,056,805 $ 2,056,805
6,000 6,000
2,062,805 2,062,805
- 474,411
23,000 33,000
23,000 607,411
$ 2,039,805 $ 1,555,394
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 2,056,805
$ -
56,872
50,872
2,113,677
50,872
83,365
391,046
-
33,000
83,365
424,046
$ 2,030,312
$ 474,918
158
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ECONOMIC DEVELOPMENT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 737,119 $ 737,119
3,000
740,119
464,000
464,000
$ 276,119
3,000
740,119
464,000
464,000
$ 276,119
Actual
Amounts
$ 737,119
102,854
19,711
859,684
203,056
203,056
$ 656,628
Variance with
Final Budget
Positive
(Negative)
102,854
16,711
119,565
260,944
260,944
$ 380,509
159
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATIONAL FACILITIES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Parks, recreation and culture
Special item
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
OriginaFinal
$ 3,897,380 $ 3,897,380
200 200
3,897,580 3,897,580
20,000 27,300
- 3,812,000
20,000 3,839,300
$ 3,877,580 $ 58,280
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 3,897,380
$ -
2,215
2,015
3,899,595
2,015
27,265
35
3,812,000
-
3,839,265
35
$ 60,330
$ 2,050
160
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Licenses and permits
Investment earnings
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Parks, recreation and culture
Capital outlay
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Originai
Final
$ 1,383,878
$ 1,383,878
132,000
132,000
10,000
10,000
1,525,878
1,525,878
221,700
230,700
56,000
56,000
200,000
200,000
477,700
486,700
$ 1,048,178 $ 1,039,178
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 1,383,878
$ -
212,177
80,177
38,898
28,898
4,676
4,676
1,639,629
113,751
246,090
(15,390)
15,000
41,000
156,244
43,756
417,334
69,366
$ 1,222,295
$ 183,117
161
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
SIGNALIZATION
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$ 103,609
$ 103,609
300
300
103,909
103,909
-
35,000
-
35,000
$ 103,909
$ 68,909
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 103,609
$ -
2,938
2,638
106,547
2,638
35,000
- 35,000
$ 106,547 $ 37,638
162
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL GOLF
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Miscellaneous
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Parks, recreation and culture
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 3,502,886
$ 3,502,886
$ 3,502,886
$ -
35,000
35,000
128,720
93,720
2,102,020
2,102,020
2,388,681
286,661
5,639,906
5,639,906
6,020,287
380,381
837,961
844,737
657,435
187,302
1,200,000
-
-
-
2,037,961
844,737
657,435
187,302
$ 3,601,945
$ 4,795,169
$ 5,362,852
$ 567,683
163
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
BUILDINGS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$ 3,274,798
$ 3,274,798
20,000
20,000
3,294,798
3,294,798
549,100
1,059,661
80,000
195,288
200,000
200,000
35,000
35,000
864,100 1,489,949
$ 2,430,698 $ 1,804,849
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 3,274,798
$ -
88,198
68,198
3,362,996
68,198
188,265
871,396
48,781
146,507
24,522
175,478
47,873
(12,873)
16,000
(16,000)
325,441
1,164,508
$ 3,037,555
$ 1,232,706
164
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CFD UNIVERSITY SPECIAL ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 1,847,046
$ 1,847,046
$ 1,847,046
$ -
Resources (Inflows):
Investment earnings
-
-
51,619
51,619
Amounts Available for Appropriations
1,847,046
1,847,046
1,898,665
51,619
Charges to Appropriation (Outflow):
Public works
-
27,000
26,766
234
Total Charges to Appropriations
-
27,000
26,766
234
Budgetary Fund Balance, June 30
$ 1,847,046
$ 1,820,046
$ 1,871,899
$ 51,853
165
THIS PAGE INTENTIONALLY LEFT BLANK
166
OTHER GOVERNMENTAL FUNDS — DEBT SERVICE FUND
Citv Highlands Undergroundina Fund — This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
167
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
JUNE 30, 2019
ASSETS:
Pooled cash and investments
Receivables:
Assessments
Due from other governments
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES:
LIABILITIES:
Deposits payable
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES:
Restricted for:
Debt service
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
City Highland Total Other Debt
Undergrounding
Service Fund
$ 176,872
$ 176,872
1,172, 053
1,172, 053
4,896
4,896
$ 1,353,821
$ 1,353,821
$ 109,526 $
109,526
109,526
109,526
1,172,053
1,172, 053
1,172,053
1,172,053
72,242
72,242
72,242
72,242
$ 1,353,821 $
1,353,821
168
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2019
City
Total Other
Highlands
Debt Service
Undergrounding
Fund
REVENUES:
Special assessments collected
$ 114,222
$ 114,222
Investment earnings
4,375
4,375
TOTAL REVENUES
118,597
118,597
EXPENDITURES:
Current:
General government
10,828
10,828
Debt service:
Principal retirement
58,000
58,000
Interest and fiscal charges
68,895
68,895
TOTAL EXPENDITURES
137,723
137,723
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(19,126)
(19,126)
FUND BALANCES - BEGINNING OF YEAR
91,368
91,368
FUND BALANCES - END OF YEAR
$ 72,242
$ 72,242
169
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CITY HIGHLAND UNDERGROUNDING
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 91,368
$ 91,368
$ 91,368
$ -
Resources (Inflows):
Assessments
131,453
131,453
114,222
(17,231)
Investment earnings
600
600
4,375
3,775
Amounts Available for Appropriations
223,421
223,421
209,965
(13,456)
Charges to Appropriation (Outflow):
General government
17,800
17,800
10,828
6,972
Debt service:
Principal retirement
44,000
58,000
58,000
-
Interest and fiscal charges
68,896
68,896
68,895
1
Total Charges to Appropriations
130,696
144,696
137,723
6,973
Budgetary Fund Balance, June 30
$ 92,725
$ 78,725
$ 72,242
$ (6,483)
170
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.
Eauipment 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.
171
CITY OF PALM DESERT
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2019
Equipment
Compensation
Replacement
Benefits
Total
ASSETS:
CURRENT ASSETS:
Cash and investments
$ 8,685,778
$ 2,729,162
$ 11,414,940
Prepaid costs
25,118
-
25,118
Due from other governments
25,000
-
25,000
TOTAL CURRENT ASSETS
8,735,896
2,729,162
11,465,058
CAPITAL ASSETS:
Nondepreciable
32,414
-
32,414
Depreciable, net
1,914,679
1,914,679
CAPITAL ASSETS, NET
1,947,093
-
1,947,093
TOTAL ASSETS
10,682,989
2,729,162
13,412,151
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable
14,340
-
14,340
Compensated absences
-
300,000
300,000
TOTAL CURRENT LIABILITIES
14,340
300,000
314,340
NONCURRENT LIABILITIES:
Compensated absences
-
2,328,215
2,328,215
TOTAL NONCURRENT LIABILITIES:
-
2,328,215
2,328,215
TOTAL LIABILITIES
14,340
2,628,215
2,642,555
NET POSITION:
Invested in capital assets
1,947,093
-
1,947,093
Unrestricted
8,721,556
100,947
8,822,503
TOTAL NET POSITION
$ 10,668,649
$ 100,947
$ 10,769,596
172
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
OPERATING EXPENSES:
General and administrative
Maintenance and operations
Depreciation and amortization
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES:
Intergovernmental
Interest revenue
Gain on disposal of capital assets
TOTAL NONOPERATING REVENUES
LOSS BEFORE TRANSFERS
TRANSFERSIN
CHANGE IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
Equipment
Compensation
Replacement
Benefits
Total
$ -
$ 272,430
$ 272,430
349,788
-
349,788
469,027
-
469,027
818,815
272,430
1,091,245
(818,815)
(272,430)
(1,091,245)
25,000
-
25,000
228,902
68,762
297,664
7,452
-
7,452
261,354
68,762
330,116
(557,461)
(203,668)
(761,129)
467,110
250,000
717,110
(90, 351)
46,332
(44, 019)
10,759,000
54,615
10,813,615
$ 10,668,649
$ 100,947
$ 10,769,596
173
CITY OF PALM DESERT
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers
Cash paid to employees for services
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets
Proceeds from sales of assets
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
NET CASH PROVIDED BY INVESTING
ACTIVITIES
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -
END OF YEAR
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating loss to net
cash provided (used) by operating activities:
Depreciation and amortization
(Increase) decrease in due from other governments
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in compensated absences
Total Adjustments
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Equipment
Compensation
Replacement
Benefits
Total
$ (398,047)
$ -
$ (398,047)
(30,987)
(30,987)
(398,047)
(30,987)
(429,034)
467,110
250.000
717,110
467,110
250,000
717,110
(269.179)
-
(269,179)
40,009
40,009
(229,170)
-
(229,170)
228,902
68,762
297,664
228,902
68,762
297,664
68,795
287,775
356,570
8,616,983
2,441,387
11,058,370
$ 8,685,778
$ 2,729,162
$ 11,414,940
$ (818,815) $
(272,430)
$ (1,091,245)
469,027
469,027
(25,000)
(25,000)
11,831
11,831
(35,090)
-
(35,090)
-
241,443
241,443
420,768
241,443
662,211
$ (398,047) $
(30,987)
$ (429,034)
174
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.
Aaencv 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.
175
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176
CITY OF PALM DESERT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
JUNE 30, 2019
Assets:
Pooled cash and investments
Receivables:
Assessments
Accrued interest
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities:
Deposits payable
Total Liabilities
Retiree
Special
Treasurers
Service
Assessment
Agency
1991 Bond Act
Stipend Fund
Funds
Totals
$ 1,933.099
$ 268,804
$ 2,853,798
$ 7,917,890
$ 12,973,591
-
-
-
52,002,794
52,002,794
-
20,615
20.615
37,963
52,417
90,380
-
-
-
4,722,788
4,722,788
$ 1,971,062
$ 268,804
$ 2,853,798
$ 64,716,504
$ 69,810,168
$ 1,971,062 $ 268,804 $ 2,853,798 $ 64,716,504 $ 69,810,168
$ 1,971,062 $ 268,804 $ 2,853,798 $ 64,716,504 $ 69,810,168
177
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
AGENCY
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Due from other governments
TOTAL ASSETS
LIABILITIES:
Deposits
TOTAL LIABILITIES
TREASURERS 1911 BOND ACT
ASSETS:
Pooled cash and investments
TOTAL ASSETS
LIABILITIES:
Deposits payable
TOTAL LIABILITIES
RETIREE SERVICES STIPEND FUND
ASSETS:
Pooled cash and investments
TOTAL ASSETS
LIABILITIES:
Deposits payable
TOTAL LIABILITIES
Balance
July 1, 2018 Additions Deductions
$ 1,948,057
$
3.202,155
$
3,217,113 $
1,875
1,525
3,400
47,008
48,427
57,472
$ 1,996,940
$
3,252,107
$
3,277,985 $
$ 1,996,940
$
3,252,107
$
3,277,985 $
$ 1,996,940
$
3,252,107
$
3,277,985 $
Balance
June 30, 2019
1,933,099
37,963
1,971,062
1,971.062
1,971,062
$ 268,804
$
$
$
268,804
$ 268,804
$
- $
$
268,804
$ 268,804
$
$
$
268,804
$ 268,804
$
$
- $
268,804
$
1,325,341
$
3,742,556
$
2,214,099
$
2,853,798
$
1,325,341
$
3,742,556
$
2,214,099
$
2,853,798
$
1,325,341
$
3,742,556
$
2,214,099
$
2,853,798
$
1,325,341
$
3,742,556
$
2,214,099
$
2,853,798
178
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2019
SPECIAL ASSESSMENT FUNDS
ASSETS:
Pooled cash and investments
Receivables:
Assessments
Accrued interest
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
TOTAL ASSETS
LIABILITIES:
Deposits payable
TOTAL LIABILITIES
TOTAL - ALL AGENCY FUNDS
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Assessments
Accrued interest
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
TOTAL ASSETS
LIABILITIES:
Deposits payable
TOTAL LIABILITIES
Balance
Balance
July 1, 2018
Additions
Deductions
June 30, 2019
$ 7,825,196
$
5,086,190
$
4.993,496
$
7,917,890
53,894,172
-
1,891,378
52,002,794
15,197
23,099
17,681
20,615
22,460
52,417
22,460
52,417
4,682,972
122,431
82,615
4,722,788
$ 66,439,997
$
5,284,137
$
7,007,630
$
64,716,504
$ 66,439,997
$
5,284,137
$
7,007,630
$
64,716,504
$ 66,439,997
$
5,284,137
$
7,007,630
$
64,716,504
$ 11,367,398 $ 12,030,901 $ 10,424,708 $ 12,973,591
1,875 1,525 3,400 -
53,894,172 - 1,891,378 52,002,794
15,197 23,099 17,681 20,615
69,468 100,844 79,932 90,380
4,682,972 122,431 82,615 4,722,788
$ 70,031,082 $ 12,278,800 $ 12,499,714 $ 69,810,168
$ 70,031,082 $ 12,278,800 $ 12,499,714 $ 69.810,168
$ 70,031,082 $ 12,278,800 $ 12,499,714 $ 69,810,168
179
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180
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2019
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.
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 service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and
the activities it 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.
181
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182
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budet Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 31,510
$ 31,510
$ 31,510
$ -
Resources (Inflows):
Intergovernmental
325,000
325,000
311,059
(13,941)
Investment earnings
-
-
433
433
Miscellaneous
-
-
7,374
7,374
Amounts Available for Appropriations
356,510
356,510
350,376
(6,134)
Charges to Appropriation (Outflow):
General government
325,000
402,890
311,059
91,831
Total Charges to Appropriations
325,000
402,890
311,059
91,831
Budgetary Fund Balance, June 30
$ 31,510
$ (46,380)
$ 39,317
$ 85,697
130
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CHILD CARE PROGRAM
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Bud et Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$1,332,828
$ 1,332,828
$ 1,332,828
$ -
116,000
116,000
25,499
(90,501)
10,000
10,000
38,272
28,272
1,458,828
1,458,828
1,396,599
(62,229)
195,560
1,275,000
-
1,275,000
195,560
1,275,000
-
1,275,000
$1,263,268
$ 183,828
$ 1,396,599
$ 1,212,771
131
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY POLICE GRANTS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public safety
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 8,380
$ 8,380
$ 8,380
$ -
100,000
100,000
181,083
81,083
-
-
2,428
2,428
108,380
108,380
191,891
83,511
100,000
183,352
94,698
88,654
-
-
86,385
(86,385)
100,000
183,352
181,083
2,269
$ 8,380
$ (74,972)
$ 10,808
$ 85,780
132
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
NEW CONSTRUCTION TAX
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Special item
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$1,656,520
$ 1,656,520
$ 1,656,520
$ -
239,000
239,000
174,981
(64,019)
10,000
10,000
34,415
24,415
1,906,520
1,905,520
1,865,916
(39,604)
-
523,200
523,200
-
-
523,200
523,200
-
$1,905,520
$ 1,382,320
$ 1,342,716
$ (39,604)
133
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PLANNED DRAINAGE
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$1,592,857
$ 1,592,857
50,000
50,000
450,000
450,000
10,000
10,000
2,102,857
2,102,857
-
1,530,676
1,500,000
1,606,643
1,600,000
3,137,319
$ 602,857 $ (1,034,462)
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 1,592,857
$ -
38,855
(11,145)
-
(450,000)
44,607
34,607
1,676,319
(426,538)
53,020
1,477,656
5,643
1,601, 000
58,663
3,078,656
$ 1,617,656
$ 2,652,118
134
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATIONAL FACILITIES
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$1,416,407
$ 1,416,407
$ 1,416,407
$ -
Resources (Inflows):
Taxes
300,000
300,000
247,187
(52,813)
Investment earnings
10,000
10,000
44,722
34,722
Amounts Available for Appropriations
1,726,407
1,726,407
1,708,316
(18,091)
Charges to Appropriation (Outflow):
Public works
-
155,060
-
155,060
Capital outlay
100,000
350,000
45,862
304,138
Total Charges to Appropriations
100,000
505,060
45,862
459,198
Budgetary Fund Balance, June 30
$1,626,407
$ 1,221,347
$ 1,662,454
$ 441,107
135
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SIGNALS
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 410,318
$ 410,318
$ 410,318
$ -
30,000
30,000
91,274
61,274
1,000
1,000
12,501
11,501
441,318
441,318
514,093
72,775
-
-
17,915
(17,915)
25,000
224,220
-
224,220
25,000
224,220
17,915
206,305
$ 416,318
$ 217,098
$ 496,178
$ 279,080
136
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITIES RESTORATION
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
$1,168,171
Final
1,108,171
Amounts
(Negative)
$
$ 1,108,171
$ -
94,500
94,500
13,655
(80,845)
9,000
9,000
31,653
22,653
1,211,671
1,211,671
1,153,479
(58,192)
75,000
1,075,171
-
1,075,171
75,000
1,075,171
-
1,075,171
$1,136,671
$ 136,500
$ 1,153,479
$ 1,016,979
137
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
RECYCLING
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts
Actual
Positive
Orip mal
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$2,494,126
$ 2,494,126
$ 2,494,126
$ -
Resources (Inflows):
Intergovernmental
-
-
12,149
12,149
Charges for services
115,000
115,000
428,418
313,418
Investment earnings
15,000
15,000
70,802
55,802
Miscellaneous
-
-
285
285
Amounts Available for Appropriations
2,624,126
2,624,126
3,005,780
381,654
Charges to Appropriation (Outflow):
General government
494,875
542,925
190,084
352,841
Parks, recreation and culture
30,000
30,000
23,804
6,196
Public works
140,000
272,000
36,514
235,486
Capital outlay
185,000
205,000
105,475
99,525
Transfers out
-
-
24,289
(24,289)
Total Charges to Appropriations
849,875
1,049,925
380,166
669,759
Budgetary Fund Balance, June 30
$1,774,251
$ 1,674,201
$ 2,625,614
$ 1,051,413
138
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ENERGY INDEPENDENCE LOAN
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Debt service:
Principal retirement
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$2,741,897
$ 2,741,897
225,000
225,000
2,966,897
2,966,897
15,000
15,000
107,000
510,000
185,320
185,320
307,320
710,320
$ 2,659,577 $ 2,256,577
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 2,741,897
$ -
205,476
19,524)
2,947,373
�19,524
5,490
9,510
529,000
(19,000)
175,155
10,165
709,645
675
$ 2,237,728
$ (18,849)
139
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Total Charges to Appropriations
Budget Amounts
Origina
Final
$ 127,342
$ 127,342
64,000
64,000
300
300
191,642
191,642
105,500
105,500
105,500
105,500
Variance with
Final Budget
Actual
Positive
Amounts
(Negative)
$ 127,342
$ -
68,444
4,444
3,629
3,329
199,415
7,773
61,773
43,727
61,773
43,727
Budgetary Fund Balance, June 30 $ 86,142 $ 86,142 $ 137,642 $ 51,500
140
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AQUATIC CENTER
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Charges for services
Investment earnings
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Parks, recreation and culture
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 2,134,436
$ 2,134,436
$ 2,134,436
$ -
795,550
795,550
793,602
(1,948)
7,000
7,000
35,955
28,955
710,750
710,750
709,937
(813)
3,647,736
3,647,736
3,673,930
26,194
1,513,300
1,553,300
1,539,494
13,806
1,513,300
1,553,300
1,539,494
13,806
$ 2,134,436
$ 2,094,436
$ 2,134,436
$ 40,000
141
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CANNABIS COMPLIANCE
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Charges for services
Investment earnings
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public safety
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 86,250 $ 86,250
50,000
136,250
50,000
50,000
$ 86,250
50,000
136,250
50,000
450,000
500,000
$ (363,750)
Actual
Amounts
$ 86,250
789,950
2,968
879,168
2,688
450,025
452,713
$ 426,455
Variance with
Final Budget
Positive
(Negative)
789,950
(50,000)
2,968
742,918
47,312
(25)
47,287
$ 790,205
142
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
EL PASEO ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Assessments
Use of money and property
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
General government
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Or
Final
Amounts
(Negative)
$ 64,836
$ 64,836
$ 64,836
$ -
250,000
250,000
251,258
1,258
-
-
1,883
1,883
314,836
314,836
317,977
3,141
250,000
257,500
247,795
9,705
250,000
257,500
247,795
9,705
$ 64,836
$ 57,336
$ 70,182
$ 12,846
143
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICTS NOS 1 -17
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Assessments
Investment earnings
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Bud et Amounts
Actual
Positive
Ori ina?
Final
Amounts
(Negative)
$ 3,2 2,212
$ 3,242,212
$ 3,242,212
$ -
850,007
850,007
852,275
2,268
7,800
7,800
74,199
66,399
-
-
530
530
100,000
100,000
93,611
389)
4808
4,200,019
4,200,019
4,262,827
892,928
898,029
694,815
203,214
892,928
898,029
694,815
203,214
$ 3,307,091
$ 3,301,990
$ 3,568,012
$ 266,022
144
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FORMER RDA LOW INCOME HOUSING
YEAR ENDED JUNE 30, 2019
Budgetary Fund Balance, July 1
Resources (Inflows):
Transfers in
Amounts Available for Appropriations
Charges to Appropriation (Outflow):
Housing and redevelopment
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
544,170
544,170
543,170
1,000
544,170
Variance with
Final Budget
Actual Positive
Amounts (Negative)
544,170
478,698
,472)
544,170
478,698
Z,472
502,170
478,698
23,472
1,000
-
1,000
503,170
478,698
24,472
41,000
$ -
$ (41,000)
145
THIS PAGE INTENTIONALLY LEFT BLANK
146
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 fagade 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.
Siqnalization 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
147
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30, 2019
Capital
Parks and
Projects
Drainage
Economic
Recreational
Reserve
Facilities
Development
Facilities
ASSETS:
Pooled cash and investments
$
2,988,345
$
2,030,312
$
682,934
$ 62,373
Receivables:
Accounts
-
-
-
-
Interest
1,632,000
972,060
Allowance for interest on Successor Agency
-
(972,060)
Prepaid costs
Due from other funds
Restricted assets:
Cash and investments with fiscal agents
-
-
Advances to Successor Agency
8.000,000
4,765,000
Allowance for Advances to Successor Agency
-
-
-
(4,765,000)
TOTAL ASSETS
$
12,620,345
$
2,030,312
$
682,934
$ 62,373
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable
$
11,833
$
$
26,306
$ 2,043
Unearned revenues
63,041
-
-
Deposits payable
-
Due to other funds
1,600,000
-
-
TOTAL LIABILITIES
1,674,874
26,306
2,043
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
1,632,000
-
-
TOTAL DEFERRED INFLOWS OF RESOURCES
1,632,000
-
-
FUND BALANCES:
Nonspendable:
Prepaid costs
-
Restricted for:
Capital Projects
Special programs
-
Assigned to:
Capital projects
8,893,084
Property acquisition
420,387
-
-
Public facilities
-
656,628
60,330
Special programs
-
-
Street related purposes
-
2,030,312
-
-
TOTAL FUND BALANCES
9,313,471
2,030,312
656,628
60,330
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$
12,620,345
$
2,030,312
$
682,934
$ 62,373
148
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
[Accrual Basis of Accounting]
Governmental Activities
2019
2018
2017
2016
2015
Net Investment in capital assets
429.729,549
438,184,070
449,037,170
459.644,720
473,722,694
Restricted
200,536,233
197,349,354
197,824,604
193.298,431
135,900,520
Unrestricted
90.057,306
83.054.707
87.091,894
78.812.066
71.530,456
Total Governmental Activities Net Position
720,323,088
718,588,141
733,953,668
7312755,217
M 681,153,670 (2)
Business -Type Activities
MM
Net Investment in capital assets
69,070,734
69,111.797
69,829,772
70,202.487
71,129.743
Restricted
-
_
-
_
_
Unrestricted C
Total Business -type Activities Net Position
6,590 251
66o,�85
75r'498,800.283
5 609 843
74,i�1,640
4� 829.456
74,659,228
4479575 575
74,682,062
4,302.958
75,432,701
Primary Government
Net Investment in capital assets
507,295,867
518,866,942
529,847,207
544,852,437
Restricted
,233
197,349,364
197,824,6G4
193.298,431
135,900,520
Unrestricted
,557
88.664.550
91.921.350
83.291.641
75,833.414
Total Primary Government Net Position,073
793.309.781
808.612,896
806,437,279
756.586,371
Governmental Activities
2014
2013
2012
2011
2010
Net Investment in capital assets
466,246,732
465,756,172
475,457,375
302,757,128
304,702,414
Restricted
140,460.575
132,741,798
119, 736,419
147,648,424
143,394, 780
Unrestricted
105,537 785
74 j¢¢3 71�
3 ] qQ,257
107 314.002
110,918,145
Total Governmental Activities feet Position
712,245,092
7U�,1U1,t�i$5
7,i16,M1
11) 557,719,554
559,015,339
Business -Type Activities
Net Investment in capital assets
72,009,184
72,892,200
73,375,634
74,043,419
67.902.786
Restricted
-
-
-
-
-
Unrestricted
3.920.382
3�682,061
3.901,816
4,068.q j3
4.391,160
Total Business -type Activities Net Position
75,929,566
76,574,261
77,277,450
78,112,042
72,293,946
Primary Government
Net Investment in capital assets
538,255,916
538,648,372
548p833,009
376,800,547
372,605,200
Restricted
140,460,575
132,741,798
119,736,419
147,648.424
143,394,780
Unrestricted
Position
109 458� 157
7W.174,658
107,2 y� 7�¢
7YA,9 5,�a
111//524.073
780,093,501
111 `382,625
635,531,596
115//309.305
631.309,285
(1) On February 1, 2012 the Stare of California dissolved the City of Palm Desert Redevelopment Agency as parr of the Statewide dissolution ofall
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm L)eseri.
(2) The implementation of GAS$ Statement Na 68 and Statement No. 71 resulted in a prior year rerratement decrease of 537.73 million in the
governmental activities net posirom-
(3) The Citys Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Furid reserved S6,571,706 for a combined total of
$72.138.669 of capital bond proceeds transferred from the Successor Agency.
183
City of Palm Desert
Changes in Net Position
Last Ten Fiscal fears
(Accrual Basis of Accounting)
Expenses 2019 2018 2017 2016 2045
raovernmemar Actvites-
General govemment
Public safety
Housing & Redevelopment (1)
Parks, recreation and culture
Public works
Payments to other agencies
Interest on long term debt
Total Governmental activities Expenses
Business -Type Activities:
Desert Willow Golf Course
Office Complex - Parkview
Total Business -Type Activities
Total primary government expenses
3rogram Revenues
Governmental Activities
Charges for services
General government
Housing & Redevelopment
Public safety
Parks, recreation and culture
Public works
Operating grants & contributions
Capital grants & contributions
Total Governmental Activities Program Revenues
Business -Type Activities
Charges for Service'
Desert Willow Golf Course
Office Complex - Parkview
Capital grants & contributions
Total Business -type activities program revenue
Total Primary Government program revenue
23,252.576
18,467.097
15,708,054
14,836.881
16.337.393
37.195.732
36,543.050
34.943,220
34.009,984
32,077,835
9.067.858
9.605,766
10.954.630
8.162.859
11.666,724
8.284.914
8.240.115
9,850.200
9,223.126
8.598.242
14.838,332
18.358.907
14.892,145
47,044,197
19.144.213
231,220
259,250
271.603
289,000
294.258
92,888,640
91,474,176
86.819.852
113,586,047
88,118,465
8.700,514
8,763,220
8.243.515
8.165.183
8.433,267
874.753
930,815
893,125
1 of115\918
934,296
9575.267
9.694.035
9,136,640
d.171 i01
9.367.563
02,445,907
101,1ti81210
95,756,02
122.737.148
97,488,02&
2.645,724
2.388.2W
2,095.648
2.185.123
2,088,393
8,180.354
7,551.760
6.861.450
7.029,595
7,971.265
14.503.741
10.801.436
10,603.708
10,606,484
9.987.891
829.557
821.824
793,527
772.801
7-72.728
2,762.D45
2.685,831
2.327.521
2.186,153
1,832.241
10.426.397
8.555.881
7,931,900
9,496,520
7.512.894
4.016,193
2.442.621
7.710.355
10.839.715
19,297.015
43,364.011
35.247.613
38.324.109
43 11 8.371
49.462,427
8.743.654
8,432.273
7,497,664
7.240.666
7,894.676
1,296.068
1.250.456
1.284.462
1,280, 230
1.306.042
167.670
605,186
111.942
47.768
10.041720
9.850.399
9.387,312
8.633.038
9.248,486
53.405.731
45.098.012
47,711,421
51,749,409
58,710,913
4et{ExpenseII Revenue
Governmental aclivities
(49,504,629)
(56.226.562)
(48.296,743)
(70,449.676)
(38,65(1,038)
Business -type activilies
970,670
156,364
250.672
(C5W.063)
k�119,077))
Total Primary Government Net Expense
(48,633,959)
(56,070,198)
04
(48,5,071)
(70,9'87,739;
(38,77s,115j
33eneraI Revenues & Other Changes In Net Position
Governmental ACtrvitie5:
Taxes: (CombinedlNet Pass -through) 11111WIl
53,894,917
50,150,650
47,628,454
44,747,151
41.931,997
Investment Earnings
3.170,693
1,901,536
1.041,232
2,074,934
494,452
Contributions not restricted for specific purpose
-
-
Gain(Ioss) on sales of capital assets
7.452
17.274
2.145
24,292
11.720
Miscellaneous
1.396.514
1.573.106
1.522.363
1.828,677
1.726.007
Specialllem (5)
(7,530,000)
-
-
-
-
Transfers M I (Out)
300.000
300,000
300.000
237,500
437.500
Gain on Transfer to Successor Agency/ Extraordinary Gain (4)
-
72.138,669
-
Total Governmental activities Net Revenues
Business -Type Activities:
Investment Earnings
Gain(loss) on sales of capital assets
Transfers Out
Total Business -type activities
Total primary government
change in Net Position
Governmental Activities:
8usuness-Type Activities'
51.239,576
53,942,566
$0,494.194
121,051,223
181.310
74,873
26,494
24,924
87.365
131.175
-
-
51'21
W[848,614�
68 =
120�1VE,
1,734,947
(2,283,9%)
2.198.451
NNENWW
50,601.547
039,345
62.412
(22.834)
(750.6391
2.674.292
12,221,584)
2,176,61T
49.850.908
(1)0ty has changed she manner in which a reports RDA expendavres. RDA and Housing expenditures are being reported under Housing h Redevelopment ".
(2) Required payment made to the State ofCahfarwa. For FY 2010 was 525.526.215 and FY 2011 Has S5,255,397,
(3) On Febtxxwy 1, 2012 the State ofCalifarnia dissolved the City of Pohn Desert Redt vylapmenr Agency as part ofthe L%nmrde dissohesion of all
Ciry Redevekpmeni Agencies, which in turn created the Successor Agency to the Redevelopment Agency ofthe City of Pabn Daert.
(a) The Crty'r Gaprral Pmperrses Capita! Project kumd rerenyd 565,566,963 and the HaxstngAssee fund received S6,S71, 706 for a combimd tolalof
S 72338..669 of capital bond proceeds tranrferrvdfirm the Successor Agency.
(5) City estabhahed an alle rice for advancer awed by the Successor Agency (See Note 21)-
44,601,676
11.774
47,938
�437.500j
377.788
44.1�23,888
5.945.638
(496.865)
5.448.773
184
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses 2014 2013 2012 !3I 2011 (21 2010 p)
UOvernmenial Actvlties'
General government
Public safety
Housing & Redevelopment (1)
Parks, recreation and culture
Public works
Payments to other agencies
Interest on long term debt
Total Governmental Activities Expenses
Business -Type Activities
Desert callow God Course
Office Complex - Parkview
Total Business -Type Activities
Total primary government expenses
3rogram Revenues
Governmental Activities
Charges for services
General government
Housing & Redevelopment
Public safety
Parks, recreation and culture
Public works
Operating grants & contributions
Capital grants & contnbutions
Total Governmental Activities Program Revenues
Business -Type Activities
Charges for Sai vi ce:
Desert Willow Golf Course
Office Complex - Parkview
Capital grants & contributions
Total Business -type activlties program revenue
Total Primary Government program revenue
get (Expense)IRevenue
Governmental Activities
Business -type activities
Total Primary Government Net Expense
3ereeraI Revenues & Other Changes In Net Positlort
Governmental Activities
Taxes: (CombinedlNet Pass -through)
Investment Earnings
Contributions not restricted for speolic purpose
Miscellaneous
on sales of assets
M'tsCBllanepu8
Speciar Item (6)
Transfers In I (put)
Gain on Transfer to Successor AgencylExtraordinary Gain (41
n
19.194.343
16,3'9 295
17 387.080
17.182,987
16.(01.292
29,339,10E
28.614.153
28,037,453
26.601.668
27,027.643
7.852,611
6.944.033
10.519,663
15,976,383
16,220, 066
8,327.402
8.752,623
6.033.019
7.337,403
7,312,679
21.123.197
16.316.237
17,407,751
16.984.334
19,9130,937
-
-
16.994,265
39.418.936
63,320,650
237.053
253.381
10.971.707
18,989.167
20.D59,813
a6,073,712
77AS6,722
107,36%M
142,490,878
170,663,080
8.452.001
8.655,754
8,471,567
7,946,063
7,832,590
922,341
984 811
1031 178
861786
876394
9 374 342
9 640 585
910 �45
8 807 899
8 708.084
95,448,054
86,896,207
116,853,683
151,298,727
179,261,164
2.152.280
1,833,823
1,805,442
1.921.573
2.127.138
6,851.603
5,30a,858
5,034,002
4,935,422
4.986.066
10.239,886
11.147,297
9,041.801
9.825.352
9,431,478
729,076
698,222
728.721
768.786
618,440
2,180,877
768,775
826,251
762.015
706,374
9.745,609
5.676 028
7.411,902
5,675,777
6.558,892
21\\086\\051
52,98i,SB2
774'439
M,166, 42
2309a678
27)67,7117
2,\255.393
26,144,i318
2722312
27,)50;
7,SD4,904
7.494,819
7,635,352
7.338.540
-7 054.2631
1.254.521
1.215.860
1.222,971
1,217,965
988,056
94,075
660,685
236,419
-
9153.501
9 371 364
9 094 742
8.556 625
8 042 319
(33,088.330) (43,589,280) (80,193,141) (116,346,560) (143,402,38D)
841 ( 2071) 408, 003j ( `�1 `224 ff�jj \\765
(33, ,17� (43, 1y [B0 1.)4� (116, 9�,l�41 [74A,068,745
39.952,736
38,742,060
73,105,614
114.880.586
120,872.421
358.674
318,996
1,102,309
2.158.558
2,916.753
-
-
791,256
762,588
644.603
488,319
1,994.5D6
3.894.203
5,838,691
3,169,977
2,382,208
437,500
437,500
440.000
(5.046,761y
53.237
-
-
144,011.578
-
Total Governmental Activities Net Revenues
43,231.737
43.392.159
225,289,638
114,924,946
126,869,222
Business -Type Activities
= ;`
Investment Eamings
13 cs5
:? 512
13.4' 1
22.559
62.330
Gain(loss) an sales of capital assets
-
-
-
-
Transfers Out
Total 13u5iness-typo activities
437 5W
4�3 ``````--
437,
433//
` 0
B ,761
B
(53 237)
6,63
Total primary government
42,80 ), 3
42, �B,
jt
224,U3,
i `320
120,994,2s6
126,878,316
-hang& In Net Position
Governmental Activities
Business -Type Activities:
MA
10,gg1,,qq�444�3407 !(296.521) 145rr``096.4\`97 (1,421,514) (16.553/3g33�.158)
703
11 712} �6.78df 144,257,9061 4,�96.482 117`789.0301
(110ry. has &•hanged the manner m which it reports RDA expenditures. RDA and Hvrrstng rxpendimre are bemg npnrted under "Housing & RedrrwkPneent"
01 Required pay nenr wde m Av Smte ofCalifornra. For FY 2010 was S25.526.215 and FY 2011 eras 55,255, 397.
(3) On fehsxary 1. 2012 Av tirotr r j('a1rF rnra dissolved the Cory of Palm Desert Redeveopment Agency as parr of the Stareernie dm Wurmn of all
0qr Redevel.Menr Agencur.. which m mm creared the Successor Agency to the Redevelopment Agency of thr City ufPufm lyesen.
(4) The C ity's Copxal Propernes (.npiml Pn)ra F nd revowd 563,566,963 and the Housing Asset Fend received S6,571,706,fur a cxmbined tnml n f
S 72. 1 M. Gh9 nfeapiwl bondproceeds imnsf ff d from the LR, c ssor Agency.
(5) ['icy euablrshed as alknranca bn• adwwx s owed by rke Successor Agency (See Note 21).
185
THIS PAGE INTENTIONALLY LEFT BLANK
MR
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:
2019
2018
201E
2015
Nonspendable
10.559.396
10,509,094
9.067.979
9,528,630
10,312,261
Restricted
-
-
-
-
-
Committed
63,197,223
59,666,638
-
-
Assigned
15,964,130
15,492,508
658.817
991,853
1,771,278
Unassigned
3,322,321
4,702.308
74.259,748
71,842,172
67,727.130
Total General Fund
93,043,070
90,370,648
83,986,544
82,362,655
79,810,669
All other Governmental Funds:
Nonspendable
193,189
1,725
1,276
31052
348
Restricted
175,780,733
169,549,126
171,044,474
165,411,544 (5)
106,261,212
Committed
16,247,652
16.751,821
16,771,055
16, 873,834
16,952,887
Assigned
21,238,271
23.258,063
23,250,337
24,172,531
Unassigned
-
-
-
-
_
Total all other Governmental Funds
213,459,845
209,560,736
211.067,142
182,288,430
147,386.978
General Fund., 2014 2013 2012 2011 2010
Nonspendable
Restricted
Unassigned
Total General Fund
All other Governmental Funds:
Nonspendable
Total all other Governmental Fi
7,745,320
7.678,250
2,926,739
2,939,850 m
9,676,961 [�)
4,425,423
3,224,761
3.297.152
4,501,159
4.044.421
66,203,203
65.311,919
69.438,971
66,776,414
63,847,586
78,373,94E
76,214,930
75,662,862
74,217,423
77,568,968
6,713
(4) 49,31%200
39,525,247
40,925,918
41,050,481
114,194,435
(4) 76,725,388
69,065,451
230,623,054
260,163,043
21,644.068
15,649.703
20,289,309
17,285,733
(2) 8,871,910 (2)
24.429,824
14,144.969
17,552,725
19, 375,999
16,432,292
160.275,040
155,839,260
146,432,733
(3) 308,210,704
(3) 326,517,72E (3)
(1) RDA made payment on advances from the city.
(2) Housing Assei fund fransferfor Capital Asset replacement to the Housing Authority.
(3) 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 she Successor Agency to the Redevelopment Agency of the City of Palm Desert.
(a) Advances to she SucressorAgency reclassified from Nompendable to Restricted far Special Revenue Funds.
(5) The City's Capital Properues Capital Project Fund received 565,566, 963 and the Housing Asses Fund received 56,571,706 for a combined
total of $72,138.669 of capital bond proceeds sransferredfrom the Successor Agency.
187
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal leafs
t]Lrdificd accrual Basis of Accounting)
nu— 2012 2013 2017 2016 2015
31 assessments collected
ley & permits
avemmental revenues
I income
es Tor services
ment Earnings
& forfeitures
Intributions from olhe r gave rooftnt
irltnoutions from property owners
Total Revenues
General govern rrent
Housing & redevelopment
Ps ss-1h rough -agree roe nt
Public salary
Parks, tecreation & culture
Public vmrks
COnt+ibu9dR5 to property owners
Capital outlay
3eol service:
Principal retirement
Inle rest and frscai cha rges
Total Expenditures
E xcess(deficiency of Revenues
avar(u rider) expenditures
)ther financing sources (uses)
i7ransfers rn
Special hem (3y
Bonds issuedlCapital Accretion on bonds
Extraordinary Gain ( (Loss) (2)
Sale of prop"
olal Otherfinancing sources (uses)
Net Change In Fund Balance
ebt se rvice as a percents ge of nonca pitaI expenditures
e0al assessrnsnt5 tollected
ainsas & Perrmis
drgovemmental revenues
Ihtal income
Orges for services
4131meRt Earnings
1es & forfeitures
scellaneous
rnhibutions from other government
ontnbuticns from property owners
TataI Revenues
General govemment
Housing & redevelopment
Pa ss•th m u gh-agreement
Pu b1m safety
Parks. retreatoon & vellum
Public works
Conlnbulions to property curers
Capital oullay
lebt service:
Principal ret+rement
Interest and fiscal tha rges
Totat Expenditures
Excass(defrcrency of Revenues
ovequnder) a xpe ndlums
hher financing sources (uses)
Transfers in
Transfers out
Bands issuedlCapilal Accretion on bonds
Extraordinary Gain 7 (Loss) (2)
Sate of property
otaI Other hnanang sources (uses)
Hat Change In Fund Balance
67.102.185
61,906959
59466.545
66.735.503
52.571,369
3,948,157
3.446.246
3.319.114
3,296,7135
3.00,766
1,416.929
1,326.049
1.676.709
2.057.843
1.757.250
8.194,162
5,682,704
7.249,515
15,429,238
18'"1'304
6,899.916
6.675.632
6.439.458
5.896.480
5.660,762
5.223,265
2,894.821
2,356.363
2.082.843
1.619.464
7.166.097
3,626,822
2.096,224
1,837,319
1,242,662
273,434
162.370
135.276
296.289
224.612
2.892,940
206,542
2.694.433
2.317.499
2,377,923
-
-
3,550,991
-
9.168
7.866
24,209,546
19.281.102
16.887,293
15,783,955
15.467,746
7.504.119
8.572.801
9.239,680
6.438.849
9,349.021
36,901.283
36.247.8%
34.674.418
33.750.347
31.819,214
8,497,39t
8.467.713
7.157,821
6,831,534
6,236,717
8728.154
12.183,852
8.794.094
11,031,584
13.0&2.388
-
-
-
19,584,487
49
3,396511
915e22
2.tB9.035
7,071,738
19.339,987
�58700
I�
150 000
237A00
257.000
4.944.000
244.050
260971
277,814l
296.336
240.219
88,128,254
84,029,517
79,437955
101045.630
100.479.341
12,986,741
4,577.595
9.437,673
1.
(11,089.263)
(12,776,001)
3,319.448
5.613,352
.'il
9,406.868
6,030.706
6,132AN
(5,736,558)
(6,313,352)
(12.218.428)
(6,075,206)
(6.971.359)
-
-
72,136.660
-
225,000
2.163.222
(6.417.110)
300.000
(2,811,540)
72.319.189
1,324,
6.571,631
A,B77.598
6.626.133
61,226.906
MAS1.3391
1.0%
0.5°I.
0.7•I,
0.6%
6.4%
;.
2012 (1)
2011
2010.
50.404.511
50,769,200
82.901,921
124,672,062
130,655,949
3,480.220
3.654,337
3.232,923
3,262,163
3.192,549
2.262.907
1,588,7%
1.041,834
1,089,543
782,271
7,380.744
5,097,892
6.637.426
7.806.282
8.700,234
5,626.850
6.367.630
5.146.499
5.011205
6.023.770
2,165,020
898.222
728.721
701.481
618.440
864.853
373.012
1.469.142
3.102.649
4.681.243
231.769
242.568
276.462
310.840
343.054
3.539.552
9.028.698
6.014.924
3.095.689
3.374.309
10.749.218
-
-
-
420
47.19A90
77.017.365
108.249.842
-
118350.914
157.261.619
17,070.016 14.028,252 15.861.883 16,273,085 19,294.744
6,650.179 5.850.556 8.942.097 10.033.576 13,612,720
- 16.904.285 39.418.936 63.320,650
29,139.735 28.299.876 27,551,113 26.824.434 25.802,787
5,802,941 8,162,449 3.685,334 3.845.901 4.534.506
12,741.784 9,819.591 11.306,021 11,256,499 13.971.707
2.350.107 - -
6.273.922 2.788,576 9,575,227 14,205,889 6.333.521
874,``000 318,000 9.032.707 22.914,707 15.22A50P/,■575■`07
80,945,9 6 67 ] .748 113,726.i12 1�(949,4a61 18T.411ZC
p 4.861.551
11,274,539
24.453.724
69,995,597
59,960,402
(5, 424.051)
(11.010550)
(24.013.724)
(70,555.5%7)
(59,520,402)
-
-
-
6.361.000
-
-
(155.895.952)
911 00•
348.501
263.989
(155,455,962)
(560,000)
8,801,000
6,59d,796
9,958,595
(160,332.5321
f21,658,5671
(18.319,1291
ai a percentage OF nonca pital a pendilur96, -
(1) On February 1.2'3i: eh, Slav of ['ai3lwrra rin.r.,ir.,r rir, [ :rr fPol. Dawn R-k—lopmenr Agerxy -parr oJ+hr.SYare+.rdr diaanhrrron oJdl
C fry Rnk-lopmenr Agemvrs. r *wh In mm r ivzar Fhe Su--rar Agency to the Redk'pmrm Agrnn ofrhe Cory (Palm N"N
For amm wfatlrWnon on thr rhtiarnlvtion of the RDA jet� see Non 16 and 17.
(2) The CIO Capri& Properrres Capital Project !-wad r wd 563 S66. 963 mrd the Noo rig Ar i F xnd r t_d S6.571.706 f-a r rhrned
mid /$ 7i. 138, 669 ofcapral&,ndprav brrona/er dfraa the Svcressor dggmy.
(31 City aoi.M.eh yf an &. m- f orhwcrs avid by the .Si�— Agtrrcy (See Non 21)
if-D
S300,0w.00a
S25aow.om
$200,0W,000
S150.000.000
$100,000-000
f50.OMOOO
SO
a
a
W
S250-000-000
$200,000,000
S150,000,000
S300.000.000
Saa-ooa.000
so
a ee n ,o n Y M
N n N H yHy yHy.. � n N
(1) Combimed otheru a eonnbrneuion of rental incur . iry snw nr eamsigs- and charges frrr s m eg
ill Ali-dlN o[fs other is a ca bmalron offnes awl forfenoms. mrr.rcetlun—. ronrribwiaw fi a other gatirmmenls- and comrrihufrrxrs /rcrm prape•rt� mrrxre.
(3) Debt Expehohiuns rs a combimum of iniRmsi fiscal charges and pr oc•rpal retrrement
(4) PuW xrrrkr fs u —brnartan of public• xnr*s and contnbxl[ons to property nu•arrs.
Note L'mpl+s exetxdes lkherrrmamcing suxrc-rs aad xses
City of Palm Desert
Graphs - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Mod3Tied Acemal BMLS of Aceoun ing)
Total Revenues
an r .v n rt n N e
a a e e e o v o d
H }H LL NN }H} } }
R t }
Total Expenditures
a 3neay.,...e,ee.vi x.e.u<.
■ I.wmxs d ycmun
OT— R i W A — -
I
■ P.�a �e.rcnion a .dxn
■ns+m,wR>v��xu
ouNr a eRea�mRe [>l
■Lepm{wO�3
■ ova: Nye [>>
o wn. dm
■13wv.y R Rwk cYryncn,
■ f erN [inemnxM
i&
City of Palm Desert
Supplemental - Historical General Fund Revenues
(including Transfers In)
Last Ten Fiscal Years
FYI
2019
1 2018
Revenue Type:
Sales Tax $
21,434,387
$ 18,627,704 $
18,505,449 $
18,994,779
3
17,565,134
Transient Occupancy Tax
I7,250,843
17,019,034
15,054,259
11,252,997
10,799,680
Property Tax (3)
11,074,207
10,777,999
10,157,813
10,461,595
9,710,990
Investment Earnings
2,672,643
1,237,562
644,341
725,015
416,656
Transfer In
937,202
1,610,830
1,472,852
1,390,258
2,179,472
Franchises
3,078,855
3,097,521
3,146,702
3,095,873
3,102,431
State Subventions (1) (3)
82,722
38,876
23,101
59,317
155,049
Building & Grading Permits
1,064,071
1,048,973
1,247,390
1,216,115
1,279,706
Reimbursements (4)
1,469,351
1,388,654
1,407,811
1,589,511
1,604,707
Business License Tax
1,216,712
1,154,275
1,118,183
1,269,082
1,160,207
Timeshare Mitigation Fee
1,678,375
1543,762
1,467,028
1,500,683
1,483,158
Plan Check Fees
619,763
691,096
431,115
592,818
505,370
Property Transfer Tax
727,978
664,822
690,975
491,060
558,965
Other Reveniics (2)
2,352,803
1,951,122
2,185,703
2,189,063
1,713,758
Total General Revenue 5
65,658,912
3 60,9529229 5
57,552,722 5
54,828,166
$
52,235,283
FY
2014
2013
2010
Revenue Type:
Sales Tax $
17,258,958
$ 16,764,908 S
15,836,953 $
14,680,578
S
13,273,793
Transient Occupancy T _
9,855,509
9,188,981
8,085,225
7,421,769
6,848,132
Property Tax (3)
9,041,428
9,529,018
7,976,494
8,341,728
8,707,567
Investment Earnings
405,456
126,206
408,661
793,461
1,766,868
Transfer In
1,373,786
2,127,655
2,240,703
2,691,634
4,747,672
Franchises
3,007,215
2,892,805
2,856,679
2,771,594
2,705,902
State Subventions (1) (3)
22,089
26,691
25,759
236,211
151,489
Building & Grading Permits
1,695,303
1,206,935
750,442
783,031
575,852
Reimbursements (4)
1,809,323
1,868,804
2,535,977
1,971,505
2,488,378
Business License Tax
1,169,316
1,149,551
1,076,541
1,085,411
1,071,997
Timeshare Mitigation Fee
1,333,586
1,292,859
1,110,227
1,192,490
1,483,220
Plan Check Fees
662,893
500,698
275,729
317,332
224,325
Property Transfer Tax
530,556
520,393
485,040
399,280
455,580
Other Revenues (2)
1,932,009
1,961,314
1,398,669
1,475,154
1,567,651
Total General Revenue S
50,097,427
S 49,156,718 S
45,063,098 S
449161,178
S
46,068,426
(1) 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 tares.
(4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement
is l united and applies to existing projects.
190
$70,000,000
$60,000,000
$50,000.000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
0 0
N N
LL LL
■Combined Other (1 )
■ In cerest
■Prnpeny Tax
OI ransient Occupancy Tax
■ Sales Tar
O 4 O O O O o O
N N N N N N N N
} } Y Y Y Y } 7L
<L tL 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 check fees, property
transfer taxes. 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 from state.
191
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
I FYI 2019 1 2018 1 2017 1 2016 jft I 2015 M
blic Safety (1)
5 20,975,032
12,521,081
2,149,715
1,249,674
2,185,648
1,828,083
-
1,250,969
20.826,198
S 62,986,390
$ 21,088,867
11,460,325
2,333,897
1,179,305
2,020,797
I,579,734
2,760
1,133,007
13,669,533
S 54,468,225
S 20,424,249
9,239,228
2,637,630
1,062,611
2,418,451
1,849,442
25,326
970,877
18,302,019
5 55,92M3
S 20,151,237 S
7,971,706
2,664,871
791,565
2,709,328
1,888,290
1,083,919
1,004,989
14,010,275
$ 52,276,180 S
18,784,117
7,561,255
2,645,443
749,631
2,631,590
1,847,798
998,463
1,067,837
14.512,426
50,798,560
y Administration (2)
blic Works Administration
mmunity Promotions
eet Maintenance
ilding Safety
eet Resurfacing
blic Works (4)
ter Expenditures (3)
tal Expenditures
f11 2014 1 2013 1 2012 1 2011 1 20I0
Public Safety (1)
` 17,306,342
S 17,002,291 $
16,532,894 S
16,047,991 $
15,671,095
City Administration (2)
7,413.578
7,180,519
7,670,377
8,023,314
8,556,627
Public Works Administration
2,556,967
2,528,131
2,527,817
2,380,255
3,021,319
Community Promotions
618,138
575,119
526,804
497,366
990,505
Street Maintenance
2,806,168
2,353,655
2,446,854
2,522,117
2,565,567
Building Safety
1,783,918
1,517,937
1,538,506
1,523,748
1,756,589
Street Resurfacing
4,466
1.179,743
2,332,968
2,268,901
708,006
Public Works (4)
1,018,435
1,505,018
1,056,998
1,354,255
1,278,983
Other Expenditures (3)
14,430,399
14,762,237
8,984.441
12,894,776
8,301,439
Total Expenditures
$ 47,938.411
S 48,604,650 S
43,617,659 S
47,512,723 $
42,850,00
(1) Public Safety is any combination of anima! regulation, police services, community safety
and traffic safety
expenditures, this does not include
for Fire Services. Fire Services are reported in a d fereni fund.
(2) City Administration is any combination of community services, independent audit. City attorney, City 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 ofacquisitions, committees, contributions, retiree health, planning & community development
economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, captal outlay,
special item, included in the transfer out is transfer to the Fire fund for its shor fall.
(4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard equipment
building maintenance, Portola Community center, storm water permit.
192
S70,000,000
$60,000,000
$30,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
SU
City of Palm Desert
Supplemental Graph- Historical General Fund Expenditures
(Including Transfers Out)
Gast Ten Fiscal Years
z 00
e e
N rH
W
N �
p C C
1'Y N N
Li C.
acom—tF e—Upm
D]Nhk W.Fis Amnmiwe m
Mc& Ayo— ts.. Q?
a P.N. S.feh (1)
(1) Public Safety is any combination ofammal regulation, police services, emmum(y safety and irafc safely expenditures, this does not include the cost
for Fire Services. Fire Services are reported in a diereni fund
(2) CityAdmimstralirm or any combination ofcommimity services, independent audit. City attorney, City 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 acquisaions, committees, contributions. retiree health, planning & community development,
economic development, marketing, mierfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capial outlay,
special item, included in the transfer out is transfer to the Fire fundfor its shor+fall.
(4) Public Warks is a combination of curb & gutter, parking lot, auto. fleet, corporate yard equipment
building maintenance, Poriola Community center, storm water permit.
193
THIS PAGE INTENTIONALLY LEFT BLANK
194
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FYI
Total General Revenue (2) $
Population (1)
General Revenue Per Capita
2019
64,721,710 S
53,625
1,207
2018
59,241,399 $
52,769
1,123
56,079,870 $
50,740
1,105
53,437,908
49,335
11083
S
$
50,055,811
51,053
980
FY
2014
Z013
2012
2011
Total General Revenue (2)
$
$
48.723.641 $
50,417
966 $
47,029,063 $
49,949
942 $
42,822.395 $
49,471
866 $
41,469,544
49,111
844
$
$
41,320,754
52,067
794
Population (1)
General Revenue Per Capita
FY 20I9 2018 20I7 2016 2015
Total General Expenditures (2) S 57,900,932 $ 49,992,388 $ 48,427,111 $ 48,134,252 $ 46,302,187
Population (1) 40 53,625 52,769 50,740 49,335 51,053
General Expenditures Per 1,080 947 954 976 $ 907
Ca vita
Total General Expenditures (2) $ 44,183,659 $ 42,155,429 $ 42,099,903 $ 41,833,291 $ 42,499,812
Population (1) 50,417 49,949 49,471 49,111 52,067
General Expenditures Per $ 876 $ 844 $ 851 $ 852 5 816
(1) Population figures are as of January start offiscal year.
(2) Interfund Transfers 1nlOut, 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
195
City of Palm Desert
Assessed Value and Estimated Actual %'alue oFTavable Property
last Fen Fiscal Z cars
Year
Residential
Commercial
institutional
I June 30
Property
Industrial
Property
Vacant Land
Property
2019
11.231.546.199
2.675.659,205
62.224,633
373,347.796
2018
10.757,283,204
2.554.854.761
59.762.684
388.457.449
2017
10,555,732.091
2.434.816,656
58.318.962
379.073.252
2016
10.174.350,142
2.358.860,033
56,840.001
412.090,006
2016
9.636.161,445
2290.456.630
54211.991
420.142.932
2014
9.043.372.632
2,247,924.054
64,595.519
426.330.424
2013
8,621,493.305
2.239.836.432
62.565.263
462.962.950
2012
8.694.403.021
2,198.729,0B8
50.256.665
452,309.984
2011
8.982.403.643
2.179.940,065
52.628.676
564.683,270
FIL__j
9.210•638.643
2.419.511.046
54.986.887
426,163,878
Less: Tax Total Taxable Total Direct Estimated Actua
Exempt Assessed Value Tax Rate Taxable Value (1)
(326.679.322)
15.556.15B.170
1.00000
15,045,226.485
(313.754,093)
14,940,671.116
1.00000
14.445.331,683
(306.174,550)
14,579,740.457
1.00000
14.095,158,994
(312.620,004)
14.210,000,198
1.00000
13.743,682,041
(298,165.952)
13,552,997.813
1.00000
13,086.962,905
(297.139.386)
12.919.103,760
1,00000
12,453,921.285
(300.313.265)
12,613.052,693
1.00000
12.064,845,537
(288.975,823)
12.564.M215
1.00000
12,123,771.853
(288.907.720)
13,132,169.069
1.00000
12,707,884.566
(274.944.437)
13.747.221.855
1.00000
13.334.233.975
(1) F..samoted •4clual laxahle 1"alue Net la a Ne Value
,Spin: Pniperty Taxe.s+n Rtrerelde ('orrnry are suhject to he 5iu[e rifC'aliforn+a's pmpnsinrur l3. JaM1'N•li[rnn lnraatrsr xh)ch ullnxareappraisals afmal prryierllonly
"ien there is p rhanRe+n oa•nershtp nr neu CnnSIrNCl1Wt urkes place. Further, the per pnsnofm h"Is property asre.Cunem Increase tow roam than ewn(2YO percent
anmtally. Pmperly is "ws edui wee hrimAed percenl 000%) of Its fair market swlue al the trine of new cnns[rvc+inn ur change in un•nem1p.
Me tux rate ra wte (l SDI percent nf+he sues v stelae.
Swmrce: Rnymide C ouney Assessor rhea HDI Coren & Crate
196
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 2010 to FY 2019
$20,000
$15,000
$10,000
$5,000
5-
20,00%
15.00%
10.00%
5.00%
0.00°%
-5, 00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Percent Increase in Assessed Valuation
FY 2010 to FY 2019
a
5' 5.02°% 2.48°% 4.15%
-4.70% -4.60% ------�
0 2011 2012 Q13 2014 2015 2016 2017 2018 2019
Historical Major Additions
Annexations
FY
Retail Centers
FY
Cook Street Area
88189
Town Center Mall
83184
Country Club #28
93194
Desert Springs Marriott
86187
Price ClublCostco
93194
One Eleven Town Ctr
88189
Palm Desert CC #29
94195
Mervyn's Center
92193
Palm Desert Greens
04105
Desert Crossing
95196
Suncrest
04105
Lucky'slAlbertson Deep Canyon
96197
Remodel 111 Town Ctr (Best Buy)
97198
Gardens on El Paseo
98199
Remodel Westfield Mall {Sears, Barnes & Noble}
04105
Sears Automotive
04105
Lowes Home Improvement
05106
Walmart 1 Sam's Supercenters
05106
Kohl's
07108
Golfsmith Extreme
08109
El Paseo Village
09110
Best Buy & Uita
11112
Remodel Westfield Mall (Dick's1H&MlRestaurants)
12113
PGA Tour Superstore
12113
Total Wine & More
13114
Tesla Motors
15/16
.source.• Riverside Counry Asse.s.sor
rhru HD!_
Coren & Cone
197
City of Palm desert
Supplemental FY 2019 and 2018 Breakdown of Basic 1% Property Tax Rate
Not in Redevelopment Project Area
ng Agency
ity General
ity Free library
ity Structure Fire Protection
of Palm Desert (1)
rt Sands Unified School District
rt Community College
side County Reg. Park & Open Space
side County Office of Education
rt Hospital
hella Valley Public Cemetery
hella Valley Recreation & Park
hella Valley Mosquito & Vector Control
hella Valley County Water
hella Valley County Water Imp. District 80
hella Valley Count} Water Stomi Water Unit
!ral Purpose Basic 1 % dill&
FY 2019 Rate
28.177327°%
2.728242%
5.873086°%
0.000000%
36.221587°%
7,526714°%
0.426231 %
4.094919°%
1.996808%
0.339927%
2.071624%
1.369698%
2.736607°%
2.972906°%
3.464324%
100.000000%
FY 2018 Rate
28.177327%
2.728242%
5,873086%
0.000000%
36,221587%
7.526714%
0.426231 %
4.094919%
1.996808%
0.339927%
2.071624%
1.369698%
2.736607%
2.972906%
3.464324%
100.000000%
(1) City of Palm Desert is a No -Low Property Tax City and the 7% represents what the state allocates to No -Law Propert}?
Tax Cities.
Source: County of Riverside, Property Tax Allocation Percentages. TR4 018-041.
198
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
City Direct
Overlapping
Rates
Basic
Total
Desert Sands
Desert
Coachella
Coachella
Fiscal
County -wide
Direct Tax
Unified School
Community
Valley Water
Valley Water
Year
Le �
Rate
District_
College Dist.
District
s_.
District I.D. 58
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
0.10000
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
2010
100000
1.00000
0.08112
0.01995
0.06000
0.00000
Notes: Proposition 13 limits the ability of the city to raise the property fax rate.
Source: Callum Statistics Inc
199
Cit1' of Palm Desert
Principal Property Taxpayers
Current and Ten Years Ago
2010
Taxable
Percentage of Total Taxable Percentage of Total
axpayer Assessed Value I
City Tax Assessed Taxpayer Assessed Value I City Tax Assessed
larriott Desert Springs
5
$
159,300,529
156,347,145
136,659,653
129,981,784
100,197,843
86,768,209
66,605,500
56,373,930
53,201,703
51,675,739
997,112,045
1,06°%
1.04%
0.91 %
0.86%
0.66%
0.58%
0,44°%
0.37%
0.35°%
0.34°%
6.61%
Marriott Desert Springs
$211,183,579
138.765,071
88,837,232
78,760,087
67,483,248
64,358,476
60,135,516
57,174,952
55,354,986
47,461,794
1 $ 869,516,941
1.58°%
1,04°%
0.66°%
0.59°%
0,50%
0.48°%
0.45°%
0.43°%
0.41°%
0.35°%
6.50%
VEA Palm Desert
WEA Palm Desert LP
gardens on El Paseo LLC
Desert Crossing 11
VVC Rancho Mirage Inc
Gardens SPE II
RU Desert Crossing LLC
Elisabeth E. Stewart
ighorn Golf Club
Monarch Sevilla Venture
C Cimarron LP
Capri wlCanterra
irst American Trust
Marriott Ownership
Resorts
Valmart Real Estate
usiness 'crust
Time Warner Ent
egovia Operations
otal
Walmart Real Estate
Business Trust
Total
Nate: The essimaled property tax revenue staled above ss based upon net taxable values, fax ratios and base year values that impact she revenue
calculation. As a result, parcels with the same assessed value that are assigned to dri9erew tux rule areas may contribute dissimilar amounts
of total revenue to the City and Redevelopment Agency.
Source: HdL Coren & Cone thru Riverside County Assessor 17 18 and Hdl, Caren & Cone thru Riverside Counly Assessor 08 09
Fiscal
Year Taxes Levied
Ended forthe
June 30, Fiscal Year
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy 0;(2) Izl
Percentage
Amount of Lem
Collections
in Subsequent
V_ I4I
Total Collections to Date
Amount i4l{5}
Percentage
of Levy
2010
5,372,247
4,686,541
87.24%
282,866
5
4,969,407
92.50%
2011
5,312,856
4,560,417
8724°%
486,495
$
4,776395
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°%
(1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The ftrsi payment was
received in the fiscal year 1993194,
(2) City of Palm Desert is a "No -Low Property Tax City". Proposition 13 rolled the tax rates back to 1973
which is when the City of Palm Desert incorporated and the Property Tax rates were zero.
Based on current state law the County allocates 7% of the 1%assessed values within the City less the
Redevelopment Agency tax increment. Fiscal Year 1992193 was the first year to receive the No/Low taxes.
(3) Fiscal Year 1996197 final total collected includes adjustments for No -Low property
tax collections from prior years modified by the County of Riverside. The County adjusted the payment to
the City of Palm Desert (FY 1995196) for the annexation of Palm Desert Country Club.
(4) Includes tax collections accrued as of June 30, 2019.
(5) Includes amounts receivable for tax year 2018-2019 along with prior receivables due for prior tax years.
Source: Riverside County Auditor Controller Office and City of Palm Desert
201
City of Pahn Drscrt
Supplemental
Top 25 Sales Tax Generators
Graph - historical
Sales Tax Trends
June 30, 2019
Top 25 Sales Tax Generators (1)
Primary Economic Category
ALBERTSON'S FOOD CENTERS
SUPERMARKETS
APPLE STORES
SPECIALTY STORES
ARCO AMlPM
SERVICE STATIONS
ASHLEY FURNITURE
HOME FURNISHINGS
BEST BUY STORES LP
APPLIANCE 1 ELECTRONICS
CHEVRON SERVICE STATIONS
SERVICE STATIONS
C0STC0 WHOLESALE COMPANY
WHOLESALE GENERAL STORES
J C PENNY COMPANY
DEPARTMENTSTORES
JW MARRIOTT DESERT SPRINGS
HOTEL f FOOD & BEVERAGE
KOHL'S DEPAR TMENT STORES
DEPARTMENTSTORES
LOWE'S HOME CENTERS
BLDG. MATLS-WHSLE
MACY'S DEPARTMENTSTORE S
DEPARTMENTSTORES
MOBIL SERVICE STATIONS
SERVICE STATIONS
NORDSTROM RACK
❑EPARTMENTSTORES
PGA TOUR SUPERSTORE
GOLF & SPORTING GOODS
SAKS FIFTH AVENUE
DEPARTMENT STORES
SAM'S CLUB
WHOLESALE GENERAL STORES
LEEDS & SONS JEWELERS
SPECIALTY STORES
CONSOLITEO ELECTRICAL DISTRIBUTORS
SPECIALTY WHOLESALE STORES
SHELL SERVICE STATIONS
SERVICE STATIONS
SUPERIOR POOL PRODUCTS
SPECIALTY WHOLESALE STORES
TARGETSTORES
DEPARTMENTSTORES
TESLA MOTORS
AUTOMOBILE DEALER
TOTAL WINE & MORE
SUPERMARKETS
WAL-MARTSUPERCENTER
DEPARTMENTSTORES
(I I Lund in a]phab�t"I.Ordcr
Sales and Use
Tax Trends FY 2010 - 2019
Millions
%= %Cha
nqa from Prior Year
$27.0
$25.0
$23.0 -In Lieu -257% eex —151%�
$21.0 1%
$19.0 ! 16%
$17.0 F 106`A— 79% 59% 29%
$15.0 aa�s
$13.0
$11.0
$9.0
$7.0
C N
O O p C C4
Wnwn[s N N N N N N {may N N N
m leduons 13.273 14.680 15.836 15.764 17.258 17.564 18.994 18.605 18.627 21.434
Nate: Current Cahfr n,,a 1a proh161ar prrxl.cue•luui of uxhndrml Ian mfnrmurrrul as an effim ml 1" nhniRe m pnPrrrwn•
1rlfr marrw• lhe"fmv eulr demwi ongomwo-, -'hreh Is prole+cled 65 km• Is rxx'h- ckmd
= The Srare of l'ahfonuu exehwWvd Xaler Tar Revenue uI& Prryvrly xae.s, lhia un a en represrnis the porrrun nj.snles het 1hal xrre exrhrutkrd
.Srwne &90E. L)ara. Mtrnl.Servicer LLC In Luu gnn'n 1n w, rn.m .Sfw, ERA PropeM T a• City of Palm Iksrn
202
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Business Type Activities
Special Assessment/
Compensated Absences
Total
Percentage
Total Debt
Fiscal
Local dbilgation
Claims and Judgments
Mote
Capital
Primary
of Total Personal
Per
Year
Bonds"
Pa abi�
_ Payable
Leases
Government
Income"
capita
2009
4,717,000 `
3,538.422
368,121
955,141
9.578,684
0,39%
200
2010
10,095,000 d"
3,062,201
245.414
328.273
13.730,888
0.56%
287
2011
9,543,000
2.798,466
122,707
1,035,721
13.499.894
0.55%
282
2012
9,238.000
3,268,224
-
2.291,358
14,797,582
0.61%
309
2013
8,920.000
3,334,322
1.751.083
14,005,405
0.57%
292
2014
8,246,000
3,713,172
1,222,915
13.182.087
0.54%
275
2015
3.302,000
2.972.605
1,435.046
7,709,651
0,32%
151
2016
3.045,000
2,737,997
929.860
6,712,857
0.28%
140
2017
2,808,000
2.583,719
-
499,881
5.891,600
0,24%
123
2018
2,658.000
2.747,009
-
1.493.330
6,898,339
028%
144
2019
2,071,000
3,212.654
1.595,394
6.879.048
0.24%
128
\'nie%: De fails regarding the city's outstanding debt can he found in she noses to the financial siatemems
° - Personal income, population and per capita injirmauon provided by C'aliiliirma Department of Finance,
and VS Census Bureau and or esummedby City Finance using 1%grouih rate.
Special Assessnieni Governmem Actieuies include.; Highlands UndergroumlingAD NO 04-01, as of June 30, 2019 the balance was $L310M.
Fiscal Year hnd 2009 the City issued the L•'nergy Independence Program f inined Obligation Improvement BondN Series 2009A (Taxable) $2.5 million so fumisite
Energy Independence Loan Program. The actual Bond Issuance was jr S2.015m_ Al June 30, 2019 the oustandmg balance was $0.390M
d' The ['try issued 51.136 million dollars of the Energy Independence Program (ABRII Assessments) Limited Obligation Improvement Rom& (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011. A1June 30. 2019 the nunionding balance was $0.371M
- In adduion the Palm Desert Financing A utharity issued S5.215 million dollars of the EnerV lmfependerice Program Variable Rate Demand Lease
Resenur Bonk, ,Series 2009(Federally Taxable). On September 2, 2014 the bonds were called in full
1 - Personal meanie and Per Capita slalistic incllude.; government and business type ach Ones combined
203
City of Palm Desert
Ratios of General Banded 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 2010 to FY 2019
P1111
City of Palm Desert
Supplemental Special Assessment Information
June 30, 2019
District tiamelDescription
2003 01-01 Revenue
S
Bonds 94-3 Merano'
xn03 01-01
lie••enue Bonds
Silver Spur Ranch
Utility
t'nderarvundiog' f
Community Facilifies District
No. 2005-1 [University Park]
Special Tax Bonds Series
2006A
2004-2 Srttio. 29
Assessment District
Limited Obligation
Im pro•em en Bonds
Bond Issue Date
06Y;�iro,3
09/02l2a
5.25I.
S l jp,ow
S 963,000
S 10,000
$ 180,ODO
3.009/
121
118
S 69,180
$ 71,872
S 90,000
S 93,066
$ 7,065
S 9,469
1 53%
I D6/25/23
4.913%
1 / 1012019
06/25/03 05/09/06
09/om 09/01/37
5.375% 5.424%
S 2,340,000 S 67,915,000
S 995,000 $ 12,640,000
S I" S 27,015,000
S 1,185,000 S 28,260.000
3.o0°I 3.00%
201 78
193 67
S 164.381 S 2.465,700
S 167,115 S 2.617,752
$ 90,000 S 980,000
S 93,950 $ 980,000
S 60,671 $ 1,485,625
S 64.195 S 1,510,125
1.87/o 0.29%
06/25/23 O"ni
4 9129Y, 5 3599%
1/10/2019 1/1012019
1 :9:y0g7
9:21203T
5.1QQ%
29,430,900
5,860,000
2,305,000
21,265,ObO
3.00%
N9
777
S 1,7557979
S 1,844,422
Moot)
769.362
1,054.885
1,174,394
0 08%
"11/22
5 013a°/.
1110r2019
Final Maturityhate
Highest lnteresl Rale
Bond Issue Amount
Matured Principal
Called Principal
Outstanding Bonds (4)
Redemption Premium
Original Parcels
Active Parcels
Reserve Requirement
Reserve Balance 18119
Principal Due 19120'2'
Principal Levied IS/1913
Interest Due 19120 t"'
Interest Levied I&19
18/ 19 De"quency Rate
Arbitrage Installment Computation
Date: 90%Rebate Due
Arbitrage Yield Rate
Atbitra e-Amount Owed
Continuing Disclosure Last Report
(1) Reserve Balances are as of 6 30 19.
(2) Amount mprearnir principal and tnleress collec?ed during the F'Y 18 19 tax roll far Deb! Servrcr Payment due in FY 19 20
(3) Levied amounts reffecr adjustmenis for comyruajon funds, reserve jumA, redemption f ndr and other adjustments.
(4) aufseandiag bond balance at Jrtrre 30. 2019.
(5) The schedule presents the mformanart for each individual focal obhganon banded dairies. Assessment Districts
94-3 Merano and 01-01 Siher Spur were refunded and ohfigared to pay Debt Servrce to Seres 2003 A.rressmenl Revenue Bonds
see rare 16foradditional information.
Source: Wildan Financial Annual Report
Kill
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2019
2018119 Assessed Valuation:
DIRECT AND OVERLAPPING TAX ASSESSMENT DEBT:
Desert Community College District
Desert Sands Unified School District
Palm Springs Unified School District
City of Palm Desert 2003 Assessment Revenue Bonds
City of Palm Desert Community Facilities District No. 2005-1
City of Palm Desert Limited Obligation Impro%ement Bonds, Series 2007
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT
Riverside County General Fund Obligations
Riverside County Pensions Obligations
Desert Sands Unified School District Certificates of Participation
Coachella Valley Recreation and Park District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Riverside County- Supported Obligations
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
OVERLAPPING TAX INCREMENT DEBTISUCCESSOR AGENCIESI
TOTAL CITY DIRECT DEBT
TOTAL GROSS OVERLAPPING DEBT
TOTAL NET OVERLAPPING DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
S 15,044,824,909
City's Share of
Total Debt 6130119
% Applicable (1)
Debt 6130119
S 349,425,000
18.550%
S 64,918,339
381,670,000
34.051%
129,962,452
386,308,048
4391%
16,924,156
1,355,000
100.000%
1,355,000
29,260,000
100.000%
28,260,ono
21,265,000
100.000%
21,265,000
S 262,584,946
S 760,133,611
5.367%
S
40,796,371
243,850,000
5.367%
13,087,430
37.000,000
34.051%
12.598,970
472,521
26.490%
125,171
S
66,607,842
93,230
s
66,514,612
S 504,773,029
0.237-100%
S
234,568,584
S 3,666,394 (3)
S 566,006,372
$ 565,913,142
S 569,672,766 (2)
S 5699579,536
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property Value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided
by the district's total taxable assessed value-
(2) Excludes tar and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations.
(3) Includes special assessment debt with government commitment, enterprise obligations with government commitment, and lease revenue bonds, if applicable.
Ratios to 2018-2019 Adiusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.75%
Total Direct Debt D.02%
Gross Combined Total Debt 3.79%
Net Combined Total Debt 3.79%
Ratios to Redevelopment Successor Agencies Incremental Valuation S (9,770,869,697)
Total Overlapping Tax Increment Debt 2.40%
Source: California Municipal Statistics, Inc., City of Palm Desert Fin ance Department
206
City of Palm Desert
Legal Debt Margin information
Last Ten Fiscal Years
Legal Debt Margin Calcu tatim for Fiscal Year 2a 19
Assessed Value
9 15, D44,821,909
Debt Limit (15% of Assessed Value) (1)
2,256,723.736
[kbt AvOcable to Limit:
General Obligation Bonds
1,310.000
Lees: Amount wz aside for
repaym am of general pWiyatiwi
debt
Total Veit Applicable to Limit
-
Legal debt margin
5 2135.e13.736
FISCAL YEAR
2a10
2011 2012 2013
2074
21115
2016
2017
2013
2019
Debt Limit
1 999731,410
1,969,825,360 1684.624.932 1,811,620,824
1.869,09.132
1,963,741,235
2.059.815. 120
2, 114.442,742
Z. 167"115,649
2.256.723.736
Tn1al Net debt appbcablr to lima
1719.000
1,656,000 1.624.000 t589,000
1.528,009
1.489.000
1.451,000
1,410.000
1.366,000
1,310,000
Legal deb! margin
1."8.012.410
1,968,167,360 1,663,D00,932 1,91D,031,824
1,666,173.132
1,962,262,235
2,058,364.120
2,113.032,742
2,165,747,6e9
2.255.413736
Total net deb( applrCable to tho limn
as a percentage of debt land
0"D9%
0.06% 0.09% 0.09%
0.06%
❑.n %
0.071A
0.07%
006%
0.06%
.5wwrn C'a0forara.11wwn'pni yl„n.rc. l+r Sam h"naecrro
207
OpFls,.al
Year
Special
Assessment
Collections
City of Palm Desert
Pledge -Revenue Coverage
Last Ten Fiscal Years
Special Assessment Bonds
❑ebt Service Special
Assessment
Princlpal Interest Coverage Collections
Tax Increment °
Debt Service
Principal Interest Coverage
2009
6,486,467
2.816.000
5,666.827
1.0004
33,095,785
12.610.000
20,043,623
2010
6,304,563
3,793,D00
5,515.577
0.6773
33,292.785
14,145.ODO
19.516.455
2011
9,695,868
3,452,0D0
5,595,543
1.0717
39.400.572
22,240.000
18,767,205
2012
8,822,163
3,332,0D0
4.897.651
1-0720
32,941,958
15,290,000
17.651.958
2013
9.524.786
3,788,896
5,255,558
10533
33.473.418
16.315,000
17,158,418
2014 °
14,895,214
12,324.000 °
4.954.432
0-8621
38,444.447
23,650,0D0
14.794.447
2016
10,848,129 °
8,159,D00 r
4.543.692
0-8540
32,294,255 '
18,295,DDO
13.999.255
2016
8.537,227
25,401.000 "
4,463.786
02859
34.810.024 '
18,055,0D0
16755,024
2017
5,896,670
3.192.000
3,233,399
09177
37,535,680 "'
16.255.000 '
21,280.680
2018
5,690,479
3,545,0DO
3,088,864
0.8427
23,428,001
14,235,000
9,1133.001
2019
5.608.312
2.427.000
2.942,348
1.0445
25,986,960
17.210.000 e 1
8,776.960
Notes. !Details regarding the city's ouissaaft deb+ can he found in the notes ra rhr financial statements.
° - The Cuy n.ssuedSZ"OIS million dollars of ibe h.'rrcrgy Iruleperalen'e Program (A8811 Assessments) LimriedoNtgaiion Improwmem Bonds (Taxable)
The special assessment collection Hull commence daring the fiscal year 2009-2010 ivuh rho first interest payment paid on March 1, 2010,
° - Tax increment bonds are backed by property tax imremene based on calculation provided by the Riverside County tax assessor office.
Additional information on tact increment can be found in the rotes to the financial siaremenis.
`- The City issued 5 1. 136 million dollars of the FnerV IndepEndem•e Program (AB811 Assessments) Limited dbliganon Imprinrment Rands (Taxable)
The special assessment colleciron will commence during lbe fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued $5"225 million dollars of rite Energy Independence program Yanoble Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable)" inieresi is paid monthly commencing A ugnsi 2009 and Principal is paid annually on September 2
ThE first principal payment was paid on September 1, 201 a-
° A portion of the S50.51 (2007) and S17,915 (2008) million CFD 2005-1 alnarrsiry Park} uns prepaid in the amount of S6"269 Million. The prepaid
S6.269M and S2.280 (2004-1) rvere called during on September 2, 2014.
The [oral amount payable for ehe bonded obligonans is disbursed by the Stare ofCaliforno Department of Finance to the Cni v of Palm Desert Successor Agency.
The annual collection equal the annual obligations"
l The City called the S5.225 Million Energy Infepeacktice Program Yuriable Rafe Demand Lease Revrmre Bonds, Series 2009 {Federally Taxable) in
full on September 2, 2014 in the amount of S4-485 Million The EnEW A -mod used the remxnning S5. 225 Bond Funds in the amount of S2.135 Million
in addition to the S2. S Million loan from the City General fund as proceexic to call the bonds.
' 77w City ofPalm Desert loaned the Energy Fund $2.5 Million in call the S5"223 Million Energy Independence Program Lease Res+enue Bonk.
Series 2009 (Federally Taxable)- The S2.5 Million is included as Special Assessment Collections.
i` During the Fiscal Year 2015.16 the Communities Fier drug District 2005-1 (University Park Series, Special Tarr Bands Series 2006A and Series 2007
defeated S20.885M of the original issued 567-715M"
i- During she Fiscal Year 2016-17 rhr Successor Agemy issued four series ofhonds (1) the Tar Allnearron Refunding Bonds, 2017 Series (SSZ"39M).
(is) Taxable Tar Allocation Refunding Bonds, 2017 Series B (5140.130M), Tax allocation Refunding Bonds, 2017 Series it -A (S 7.365M), and
(iv) Taxable Tar Allocation Refunding Bmv&r 2017 N-B a45.815M)" See Note 18 Tax Allocation Bonds- The 2017 Refunding Bonds refunded all of the
tar allocation revenue bonds, with the exception of thr Prri)eci,Area No- 1 2007A Bonds, and the Project Area No. 2 2003 Bonds.
1.013
0.989
0.961
1.000
1. D00
1 "0D0
1.000
1.000
1.000
1 ODO
1.000
KILN
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 CYa Income CY Rate b Population (Decrease) Rate b
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%
$ 2,550,849.066
$ 51,940
8.67%
2,217,778
3166%
14.44%
2010
52,067
1,08%
$ 2,513,151,788
$ 48,268
8.80%
2.139.535
1.51%
14,65%
a - Personal Income estimated based on average growth rate of previous four years. The growth rule jartor used was 1. 5% Income data will be
updated ante the actual data es available.
h - Unemployment rate for fiscal year 18 19 is based on annual information from State of California Employmere Development Department
Labor Market Information Division (not seasonally adjusiW)
Sources: State Apartment of finance, State Employment Development Department
Kil!]
City of Palm Desert
Principal Employers
Current and Ten Years Aga
2019
2010
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
9.80%
Resort
2.000
1
6.08%
Universal Protection Services
Universal Protection Services
1,500
2
6.38%
1,500
2
4.56%
Securitas-Security Service
USA
USA
700
3
2 98°k
Guthy Renker Corp -
3
2.51%
Organization of Legal Pro's
Securitas-Security Service USA
501
4
2.13°/°
700
4
2.13°I°
Sunshine Landscape
Desert Arc
500
5
2.13%
400
5
1.22%
Costco Wholesale
WalMart Super Center
250
6
1.06%
350
6
1.06%
Bighorn Golf Club
Marriot Desert Springs Villas
250
?
1.06%
304
7
0.92°I°
Whole Foods Market
Macy's West
150
8
0.64%
301
8
1.06°/°
Target
Toscana Country Club
145
9
0.623'°
300
9
0.91%
Tommy Bahama
Bighorn Golf Club
125
10
0.53°%
250
10
0.76°/°
Totals 6,425 27% Totals 6.930 21%
Sources: Reference HSA, CA Employmene Development iXpirnn cw - Federal rind Sane fiovernmenl nor included
210
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2019
Citvl Municitaal Government
Form of Government:
Date of Incorporation:
Number of Employees:
Size of City:
Geographic Location:
Streets:
Number of Business Licenses:
Number of Hotels & Rooms
CONTRACT SERVICES:
Police Department
Fire Department
Animal Control
Water & Sewer
Trash Collection
Electric
Gas
Telephone
Airport
Public Education
Elementary School (grades K - 5)
Middle School (grades 6 - 8)
High School (grades 9 - 12)
Community College - College of the Desert
CSUSB - Palm Desert Campus
UCR - Palm Desert Graduate Center
Insurance Coveraae
General Liability Coverage
(Excludes Earthquake & Flood)
Special Events
Worker's Compensation
Property Insurance
Health Insurance
Medical
Dental
Vision
Disability Insurance
Life
Retirement
Source: City of Palm Desert
Council - City Manager/Charter City
November 26, 1973
109 Full-time Employees
26.96 Square Miles
Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
170 paved street miles
7,657 active business licenses
17 hotels, 2,616 rooms
Contract with Riverside County Sheriff - 75 positions plus 37 support staff
Contract with Riverside CountylState Fire 50 positions plus 10 Fire Prevention staff
Riverside County Animal Services
Coachella Valley Water District
Burrtec - Waste Management
Southern California Edison
Southern California Gas
Verizon
Palm Springs International Airport
4
1
1
1
1
1
Calif. Joint Powers Insurance Authority $50 MillionlEvent
Excess Coverage: from $2 Million up to $50 Million limit
Calif. Joint Powers Insurance Authority $1 Million
Calif. Joint Powers Insurance $10 Million
Calif. Joint Powers Insurance Based on Prop. Value
California PERS; choice of PPO, HMO. Kaiser, Blue Shield
Delta Dental
Vision Service Plan
Disability - The Hartford Insurance Company
The Hartford Insurance Company
California PERS - Public Employees' Retirement System
211
City of Palm Desert
Full-time Equivalent City Government Employees by Function 1 Program
Last Ten Fiscal Years
notion 1 Program
2019 2018 2017 2016 2015 2014 2013 a 2012 "b 2011' 2010
Generaf Government
city 31 31 32 32 34 34 33 26
31
31
Eoonomic Deg & Housing b 11 10 11 13 13 13 12 17
24
25
Public Safety 28 29 29 28 26 25 24 24
25
26
Police & Fire (1 ) 172 179 170 163 169 173 157 162
155
151
Public Works 39 39 39 40 40 40 38 40
47
49
Totals 281 288 281 276 282 285 264 269
282
282
(1) The City operates as a conrrad c ay" utilizing, primurdy, agreement with other governmental entities, privateJirms and individuals
to provide services.
Coninwied services include: P oltce and F ire protection through the County of Riverside, Cal -Fire, animal control, health services,
legal services and landscape matmenunce.
u - As of June 2011 realignmems were made due to budget curs, retirements and layofs• these connnued to FY 2013.
h - On February 1, 2012 the Stale of Caltjbrnia dissolved the ('try of Palm Desert Redevelopmem Agency as purr of the Srurewtde dissolution of all
Pity Redevelopment Agencies, which in nern creared the Successor Agency to the L f . 1...; .,. .i Agency of the City of Palm Drserr.
Source: City of Palm 1]eserr Financial Plan, Calrforma Dgwrimenr of Forestry and Fire Protection, Riverside County SherrJfs Depuriment
212
City of Palm besen
Operating Indicators by Function 1 Program
Last Ten Fiscal Years
Function 7Program 2019
Zola
2017
1 2016
2015
2014
201
2012
1 2011
2010
General Government
An
Business License mapections
24
33
195
4 r ;
515
413
Contracted Services - Burnet Waste
Refuse colrected (tons) 59,154
56.346
54.391
52.772
54 865
57 rr35
52 131
49 205
53,108
51 483
Recyclahles Collected 27,39T
28.119
26.651
23.818
24.611
26 424
24 862
23 58B
22.867
20 591
3
Public Safety
vnysicai wrens
156
1.654
1,$20
1.28a
1946
1.348
956
1 012
1 134
1.342
Parking vtalations --
375
575
587
712
794
386
196
569
332
933
Traffic Violations
3,525
7,012
6.939
6,223
5.525
5,284
5,080
8.216
8.360
10.200
Emergency Responses -Fire oepartmenl
10,009
9,984
9.617
9,285
8.626
8,235
7,907
7,151
7.720
7.772
Fires Extinguished
93
90
68
103
88
106
104
101
107
104
Fire Inspections
5.397
3,378
1.274
2.118
2.989
2,552
3.M8
5.235
4,551
4.825
Buming Permits Issued
3.912
3.644
4,734
4,704
4,909
5.552
4.548
3.448
3.711
3.230
Building Inspection$ Conducted
13.965
18.601
23,542
24.755
24,057
24,830
1$• 1 G.
14,749
14.069
14.080
Public Works
Streel Resurfacing (miles) (3)
31.6
7.3
258
29
8
M
23
53
5
8
Parks, recfeation & culture
nlmetic Field Permit Issues
2,99p
2.934
3,197
2.997
4,430
6.548
2.635
3,682
6,050
6.2B7
Amphitheater) Pavilions Permis Issued
119
121
106
104
283
247
128
266
286
226
Community Center Admissi ns
52.203
50,769
51.694
64,493
53.426
50,204
52.062
69,240
30.298
59.986
Aquatic Center Admissions (2)
52.102
53,739
58.023
60.359
64,103
43,545
48,663
45,909
4.329
-
(1) 77- Cror operares as a "conrmcr ciry-" n,ilrzrng. primarily, ogmeiwen, ii•rrh ixhergolrrnnten,al en,irirs, pn re frrms and rndtvirhrals
to Prow& services.
Comrorred.rervrc•es F"li de Police and Fire proteerrorr rhrartgh the Conrnry vtRiwrslde. animd conind. hraldb sen•kes.
legai senrees and Lod. pe nxrrnrenance
(2) Agirartc Center operurrnns began in June 2011• nkniaged 6y the YMCA.
(3) New methods of some, n•.xurformg hmv rmpmwd e((icienry, therefore egxdrng morn milts resirrfared
(*)Per Binkfing & Safety Dgwr,mrm 8irvness h"me inslieclions are no, ! ger dune
tioar¢vs. Riv mum C'omrry- Sherr(fa Dept.. Cahfomm State Deparmrent of Fa,e oy & F,m Pmtecrmn•
COY of Palm Demrr, Coachella Palley R"marron & Park Do-s,ric•r, 8iirrrec Waste and Tile MCA.
213
City of Palm ➢wart
Capital asset Statistics 6} Function / 1'rograrn
Last Ten Fiscal Years
kunc ti on I Program 2019
2018 2017
2016
2o15
2014 2013
2012
IOtl
26t0
6aneral Gorernrrl8rtt
Con batted Services Ili
Cdle .ntr,rcl¢ 25
24 24
35
30
30 36
36
51
51
public Safety -police d Fire ,
PO& M $ub 5ute
Palyd lhr>SCare
Pavel Uri>rhlota
OFire Stm-
Flro T"dta
AmLuar a
Fire Prerert8on Rck-upc
PubNc riwks
Streets [mile]
Trai Sig,4
Parks, recreation d -ft..
Acre9pe
Total Parrs
Poapgrounds
Basehallrsortavl oamoria
SoYcalfootb-0 8d&
Tenn Courts
VdlefuO C.a '%
Cm, ervty Gamer-
: $M.aleboard Parka
Aque:t C9Ya l2}
ial OflRc& Spaee
(Parlmew Cgfi- CPmpe.)
(,easape $pace fsw a fef9]
p-P, Rare
tsamlxr of 7eroygs W lype
✓viwer-m f3r 1 ,, local regional
1aDn-Prcai
I'm.
Square Footage Fee" try "M
I C;vearrvnefx [3rae, Ivcel repmal
lian
. ?JonArofe
Pnvat!
Vacant
icipal Gall Cm rta
(Dared w llpw C.en RaW)
Courses - R. Cliff and Mou+Kan New
I+pa
Gdf Carat
G ubl+wee -ware footage
Ro-k Per Cours8
N* cks
Cloonan Vi-
Tdal MIKO ROunde
1
1
1
t
1
1
1
0
0
2
29
30
29
29
2926
2$
31
31
26
a
9
9
11
10
10
10
10
10
11)
3
3
3
3
3
3
3
3
3
3
4 plus 1 Fl---C
4 pus 1 Reserve
4,1 us 1 Reserve
4 plus 1 Reserve 4 pus t R%-d 4 plus
1 Rwd
4 pus 2 Rs 1
4 pi r 2 Rsrvd
4 plus 2 Rsrvd 4
plus 2 Rsrvd
4 plus 3 Reserve
4 PIu6 3 Reserve
40 3 Reserve
4 plus 3 Reserve 4 plus 3 Rsrvd 4 pus 3 Rervd
4 p[ue 1 Rarvd
4 phis 1 Fs -
3 plus 1 Sppn 3
plus 1 3ppr1
4
3
3
3
3
3
3
3
3
3
_
90
201
201
201
201
Ml
201
201
201
zal
201
S3
13
13
13
}3
13
13
13
13
13
16
1s
16
16
16
18
16
16
16
16
8
8
e
6
6
8
B
a
6
8
9
9
9
9
9
9
9
9
9
9
11
11
t1
11
N
11
11
}1
}1
11
10
+0
1❑
10
t0
10
10
10
10
10
8
6
s
a
6
8
6
8
a
a
2
2
2
x
2
2
22
2
2
2
2
2
2
2
2
2
2
2
2
1
1
1
+
t
1
f
50 322
50.322
50 322
50 M
50.322
50 322
50 322
50 322
50.322f
50.122
91=p
82`.S
64�•:
90%
90'a
66'::
8B"+
521.
90°%
97.
7
1
9
8
9
8
10
f0
t0
4
3
3
4
3
4
4
5
7
3
2
3
31 GL7
3a 907
32.28'
33.127
00.907
31 921
31.32'
32.021
32.696
34,617
6621
a.06t
4061
3561
8.290
3294
4.a67
SZ15
5,6a3
4.735
746a
62t8
6938
8688
6,025
a.C25
8513
4.310
7,350
10212
4 62fi
9.136
a 16
4 946
5,121
7 062
6 021
8.775
4.033
756
2
2
2
2
2
2
2
2
2
2
36
36
36
36
36
36
36
36
36
36
172
172
172
112
172
172
172
172
172
1110
39.00o
39.000
39.G00
3900'.
89,000
39,600
39. No
]9-wg
39:000
33.000
46 646
46.620
39,424
39.366
44-a45
45.841
45 645
45 005
44 745
45.988
43.523
43.712
39931
40910
42.407,
43,180
38.669
41666
39176
37.146
92,169
90.332
79.355
80.276
87Z52
a9,001
84.314
86 fi71
63.923
83.134
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214
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
Note: This section is not required by GAS 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.
215
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1987
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T993
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0 Project Area No. 1 - Added Territory (1982)
0 Project Area No. 2 (1987)
0 Project Area No. 3 (1991)
Project Area No. 4 (1993)
t City Limits
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January 2019
216
City of Palm Desert
Redevelopment. Agency
Tax Allocation Bond Issue Information
June 30, 2019
DESCRIPTION
515,745,000
Tax Ailocalion
Revenue
Bond
Years
5
5
I - 2.001.
MSIA
5
30
03/26/03
08/01/33
5_00 /a
15,745,000
15,745,000
1,574,500
(1)
-
76%006
4.95M
_
Bond issue Date
Final Maturity Date
Higbest Interest Rate
Bond Issue Amount
Outstanding Bond Amount
Cali Premium
Bond Insurer
Reserve Requirement (1)
Reserve Balance (1)
Called Bonds
Principle Due 19120
Interest Due 19120
Arbitrage Yield Ratc
Arbitrage -Amount Owed
Arbitrage Five Year Due Date: 03/26/23
Bond Issue Date
Final Maturity Date
Highest Interest Rate
Bond Issue Arnoum
Outstanding Bond Amount
Call Premium
Bond Insurer
Reserve Requirement (l)
Reserve Balance (1)
Called Bonds
Principle Due 19/20
Interest Due 19l20
Arbitrage Yield Rate
Arbitra e-AmounrOwed
.Arbitraue Five Year Due Datc:
Non -Housing
Tax Allocation
Bond (Exempt)'
13
02/31/17
10/01/30
5,000%
5
52,390.000 S
5
48,265,000 S
0-ow/
RAM
5
Housing
Tax Allocation
Bond (Exempt)
5,917,319
(1)
2,730,D00
2,331,350
3.659
01/3 L122
Tax Allocation
Bond {Taxable}
0.001
RAM
Housing
Tax Allocation
BondfTaxahlel
24
01/31/17
ID101141
4.250%
140,130.000
13 t,540,DD0
9,640,998
(1)
8,683,000
4,3%900
3.659%
01/31/22
rears
14
Bond Issue Date
01/31/17
}6
011311i7
Final Maturity Dam
301001
10/01/23
Highest Interest Rate
5.0001/a
3,0r/
Bond Issue Amount I S
7,365,066 S
45,815,000
Outstanding Bond Amount I S
6,645,000 $
31,485.0K0
Cali Premium 0.001/
0.001i
'Bond Insurer RAM
RAM
Reserve Requirement 1
687,519
4,591,300
Reserve Balance (1)
(1)
(1) F
Called Bonds i
_ S
_
Frij Ie Due 19120
390,000
7,680,000
Interest Due 19120
297.119
710/I925
Arbitrage Yield Rate
2.907%
2.90r/a
Arbitra e-Amount 0
_
Arbitrage Five Year Due
01/3 L122
a 1131122
i 1 i A surcn bond m w umcd b� %IbI.A Insuram c. fulurc restrYe balug[a will be mu
I Refiurdcd PA 1.4 tat etempr puruon of bonds ($22.07M. SI9M. S24 945M. $62.3M. S17 31
M, S67.6M, 54.745M, 5t7.05M, SI1.02M, $15.695K "A S19.2m)
2 Refunded PA t-4 taxnblo pommn of bonds IS22 117M.II9M. $24 945M, $62 3M. SI7 31 M. $67 6M, S4.745M, $15.05M.
SI 1 02M.115 695M, and S19.2M)
3 Refunded Hmumg rat c.cmpt porvon of bonds (12.IM and $86 155M)
4 Refunded Housing w.able pnnron of bonds f 12.IM and Sa6 155M)
Sourec Cm of Palm Dcwn and Successor Agcm% Io the Pabn Desen Rcdc�clopment AgaK%
217
City of Palm Desert
Historical Tax Increment/
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Project Area No. 1
FY 2013/14 1
FY 2014/15
FY 2015/16 1
FY 2016117 1
FY 2017/18
Gross Tax Increment
51,298,203
53,437,088
56,610,029
58,222,677
59,842,517
62,844,689
Less:
Housing Set -Aside*
10,259,641
10,687,418
11,322,006
11,644,535
ll,%8,503
12,568,938
SB 2557
673,261
686,944
629,449
725,403
662,238
594,754
Gross Pass-Throu hs
20,111,377
21.241,903
22,961,604
25,052,727
22,919.420
25,953,291
Net Tax Increment
20,253,925
20,820,823
21,696,970
20,800,012
24,292,356
23,727,706
�RPTTFAmount Deposlted J
25,090381
26,530,801
24,696,424
25,131,004 j
19,923,194
20,331,658 !
Project Area No. 2
FY 2013/14
FY 2014115
FY 2015/16
FY 2016/17
FY 2017/18
FY 2018119
Gross Tax Increment
13,556,184
15,232,096
16,232,329
16,302,895
16.916.067
17,401,509
Less-.
Housing Set -Aside*
2,711,237
3,046,419
3.246,466
3,260,579
3,383,213
3,480,302
SB 2557
179,214
192,900
180,457
202,348
187,481
165,500
Gross Pass-Throu hs
4,96702
5.665,961
6,078,194
6,103,481
6,372,798
609,645
Net Tax increment
5,698,132
6,326,816
6,727,213
6,736,487
6,972,575
7,146,063
unt Deposited
7,017,531
5,441, 721
5,547,4271
5,887,8141
5,516,6741
5,629, 776
Project Area No. 3
FY 2013/14
FY 2014/15
FY 2015116 1
FY 2016/17 1
FY 2017/18 1
FY 2018/19
Gross Tax increment
3.760,421
3,754.999
4M39.902
4.360,574
4.364.606
4A97.719
Less:
Housing Set -Aside*
752,084
751,000
807,980
872,115
872,921
897,544
SB 2557
49,871
48,901
45,175
52,745
8.947
42,853
Gross Pass-Throu hs
1,377,700
1371,786
1,510,219
I,656,158
1,662.390
1,730,228
Net Tax Increment
1,580,766
1,593,312
1,676,528
1,779,556
1,820,347
1,817,094
�RPTTFAmount Deposited
1,357,6781
1,237,9301
1,290,6231
1,295,1561
1,422,709 f
1,451,8771
Project Area No.4
FY 2013/14 1
FY 2014/15 1
FY 2015/16 1
FY 2016/17 1
FY 2017118 1
FY 2018119
Gross Tax Increment
11.941.800
13,05T891
11889.272
14.287.533
14,685,301
15.25 1.2o4
Less:
Housing Set -Aside*
2.388,360
2,611,578
2,777,854
2,857,507
2,937,060
3,050,241
SB 2557
156,818
166,634
154,976
178,812
162,715
145,017
Gross Pass-Throu hs
7,901,830
8,381,422
8,866.804
9,433,947
9,943,062
10,454,725
Net Tax Increment
1,494,792
1,898,257
2,089,637
1,817,267
1,642,464
1,601,222
4RP77FAmmniDepvslted
j 3,675,440
3,071,9661
Z443,5071
2,610,6601
4,834,9781
4,934,105
*For calculation purposes only - No
requirement to deposit Housing Set Aside post Redevelopment Dissolution.
218
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