HomeMy WebLinkAboutAudited Comprehensive Annual Financial Report (CAFR) FYE 06-30-2017 STAFF REPORT
CITY OF PALM DESERT
PALM DESERT HOUSING AUTHORITY
FINANCE DEPARTMENT
MEETING DATE: February 8, 2018 (t--
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, 2017
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, 2017.
Strategic Plan Objective
Not applicable.
Committee Recommendation
The Audit, Investment and Finance Committee received the City of Palm Desert audited reports
at their January 23, 2018 meeting, and recommended that the report be received and filed by
the City Council.
Background
Lance, Soli & Lunghard, LLP performed and completed the annual independent audit for the
fiscal year ended June 30, 2017, 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, 2017, 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 Auditing 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\Niamh Ortega\Staff Reports\Audit staff reports\Audit Staff Reports 2017\SR-Council audit 2017 CAFR.docx
Staff Report
Receive and file CAFR for Fiscal Year ended June 30, 2017
February 8, 2018
Page 2 of 2
Program's requirements, as it has for the past 20 years.
For the City's General Fund, the actual ending revenues of $57.56 million were $0.17 million
less than the final budgeted revenues of $57.73 million. Sales and transient occupancy taxes
continue to be the top two revenue generators for the City totaling $33.56 million, or 58.30
percent of the total General Fund actual revenues. The General Fund actual ending
expenditures of $55.93 million were $1.42 million less than the final budget of $57.35 million.
Staff requests that the City Council receive and file the audited financial statements for the fiscal
year ended June 30, 2017.
Fiscal Analysis
There is no fiscal impact associated with this action.
LEGAL REVIEW DEPT. REVIEW ' FINANCIAL REVIEW CITY MANAGER
N/A G(?vu=C` ✓ 6tOC mot,
Robert W. Hargreaves �a�t M. Moore Janet M. Moore Lauri Aylaian
City Attorney Director of Finance birector of Finance , Cit Mana er
ATTACHMENTS: 1. City of Palm Desert audited financial report for fiscal year ended
June 30, 2017
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
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G.\Finance\Niamh Ortega\Staff Reports\Audit staff reports\Audit Staff Reports 2017\SR-Council audit 2017 CAFR.docx
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December 15, 2017
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
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Palm Desert (City) for the year ended June 30, 2017. 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 May 23, 2017. 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.
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(s) affecting the City's financial statements
were:
Management's estimate of its net pension liability is based on actuarial valuation
specialist assumptions. We evaluated the key factors and assumptions used to develop
the proportionate share of the net pension liability in determining that it is reasonable in
relation to the financial statements taken as a whole.
Management's estimate of its Other Post-Employment Benefit Annual Required
Contribution is based on actuarial valuation specialist assumptions. We evaluated the key
factors and assumptions used to develop the Other Post-Employment Benefit Annual
Required Contribution in determining that it is reasonable in relation to the financial
statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
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 15, 2017.
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's discussion and analysis, budgetary comparison
schedule for the General Fund, the schedule of proportionate share of net pension liability and the
schedule of plan contributions 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.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
We were engaged to report on combining and individual nonmajor fund financial statements and
schedules, which accompany the financial statements but are not RSI. With respect to this supplementary
information, we made certain inquiries of management and evaluated the form, content, and methods of
preparing the information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the prior
period, and the information is appropriate and complete in relation to our audit of the financial statements.
We compared and reconciled the supplementary information to the underlying accounting records used to
prepare the financial statements or to the financial statements themselves.
New Auditing Standard No. 130
This new auditing standard is effective for financial periods ending on or after December 15, 2017; for
most California municipalities it is effective for the period July 1, 2017 through June 30, 2017 and future
periods thereafter. The standard allows CPA firms to issue an opinion on the financial statements
conformity with generally accepted accounting principles, as well as an opinion on the operating
effectiveness of internal controls over financial reporting through an integrated audit. This standard does
not change the objectives of a financial statement audit, it only enhances the value and scope of a
financial statement audit and increases the level of assurance provided by CPA firms on financial
controls. Municipalities should look to perform an integrated audit for more assurance on the operating
effectiveness of internal controls over financial reporting.
New Accounting Standards
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective
for fiscal year 2016-2017 audit:
GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain
Provisions of GASB Statement Nos. 67 and 68.
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans.
GASB Statement No. 77, Tax Abatement Disclosures.
GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit
Pension Plans.
GASB Statement No. 80, Blending Requirements for Certain Component Units-an Amendment of
GASB Statement No. 14.
GASB Statement No. 82, Pension Issues an Amendment of GASB Statements No. 67, No. 68,
and No. 73.
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 2017-2018
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions.
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To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
GASB Statement No. 81, Irrevocable Split Interest Agreements.
GASB Statement No. 85, Omnibus 2017.
GASB Statement No. 86, Certain Debt Extinguishment Issues.
Fiscal year 2018-2019
GASB Statement No. 83, Certain Assets Retirement Obligations.
Fiscal year 2019-2020
GASB Statement No. 84, Fiduciary Activities.
Restriction on Use
This information is intended solely for the use of City Council and management of the City and is not
intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
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 aggregate discretely presented component units, 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, 2017, 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 15,
2017.
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. PrimeGlobal
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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 15, 2017
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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, 2017. 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
July 28, 2017
CITY OF PALM DESERT
2016-2017
APPROPRIATIONS LIMIT CALCULATION
A. 2015-2016 APPROPRIATIONS LIMIT: $ 111,576,398
B. 2016-2017 GROWTH IN NON-RESIDENTIAL
ASSESSED VALUATION 5.37%
C. 2016-2017 CHANGE IN POPULATION: 1.26%
D. RATIO OF CHANGE (1.0537 X 1.0126): X 1.0670
E. 2016-2017 APPROPRIATIONS LIMIT: $ 119,049,408
($111,576,398 X 1.0670)
City of Palm Desert
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2017
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2017
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)
ACCOUNTING TECHNICIAN II ACCOUNTING TECHNICIAN II MANAGEMENT ANALYST II
James Bounds Diana Leal Jenny Weill
ACCOUNTING TECHNICIAN II ADMINISTRATIVE SECRETARY SENIOR FINANCIAL ANALYST
Horacio Celaya Niamh Ortega Anthony Hernandez
ACCOUNTING TECHNICIAN II DEPUTY CITY TREASURER SENIOR MANAGEMENT ANALYST
Sharon Christiansen Thomas Metz Veronica Tapia
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CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting V
List of Principal Officials vi
Organizational Chart vii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
Statement of Net Position .17
Statement of 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 25
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, 2017
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Plan-Agent Multiple-Employer Schedule of Changes
in the Net Pension Liability and Related Ratios 104
Miscellaneous Plan-Agent Multiple-Employer Schedule of Plan Contributions 105
Schedule of Funding Progress: Other Post-Employment Benefits Plan 107
Budgetary Comparison Schedule by Department—General Fund 108
Budgetary Comparison Schedule—Measure A 110
Budgetary Comparison Schedule—Prop A Fire Tax 111
Budgetary Comparison Schedule—Housing Asset Fund 112
Budgetary Comparison Schedule—Housing Authority 113
Note to Required Supplementary Information 114
SUPPLEMENTARY SCHEDULES
Combining Balance Sheet—Other Governmental Funds 116
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Governmental Funds 117
Combining Balance Sheet—Other Special Revenue Funds 122
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Special Revenue Funds 128
Budgetary Comparison Schedules—Special Revenue Funds:
Traffic Safety 133
Gas Tax 134
Housing Mitigation Fees 135
Community Development Block Grant 136
Child Care Program 137
Public Safety Police Grants 138
New Constructions Tax 139
Planned Drainage 140
Park & Recreational Facilities 141
Traffic Signals 142
Fire Facilities Restoration 143
Recycling 144
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page
Number
Energy Independence Loan 145
Air Quality Management 146
Aquatic Center 147
El Paseo Assessment District 148
Landscape and Lighting Districts No. 1-17.. 149
Former RDA Low Income Housing 150
Combining Balance Sheet—Other Capital Projects Funds 152
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Capital Projects Funds 156
Budgetary Comparison Schedules—Capital Project Funds:
Capital Properties 160
Capital Projects Reserve 161
Drainage Facilities 162
Economic Development 163
Parks and Recreational Facilities 164
Arts in Public Places 165
Signalization 166
Capital Golf 167
Buildings 168
Balance Sheet—Other Debt Service Fund 170
Statement of Revenues, Expenditures and Changes in
Fund Balances—Other Debt Service Fund 171
Budgetary Comparison Schedules—Debt Service Fund:
City Highland Undergrounding 172
Combining Statement of Net Position—Internal Service Funds 174
Combining Statement of Revenues, Expenses and Changes
in Fund Net Position— Internal Service Funds 175
Combining Statement of Cash Flows—Internal Service Funds 176
Combining Statement of Assets and Liabilities—All Agency Funds 179
Combining Statement of Changes in Assets and
Liabilities—All Agency Funds 180
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION
Description of Statistical Section 183
Financial Trends:
Net Position by Component 185
Changes in Net Position 186
Fund Balances of Governmental Funds 189
Changes in Fund Balances of Governmental Funds 190
Graphs—Changes in Fund Balances of Governmental Funds 191
Supplemental Historical General Fund Revenues 192
Supplemental Graph—Historical General Fund Revenues 193
Supplemental Historical General Fund Expenditures 194
Supplemental Graph—Historical General Fund Expenditures 195
Supplemental Historical General Revenue and Expenditures Per Capita 197
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property 198
Historical Net Assessed Taxable Values Citywide and
Graph —Assessed Valuation Growth 199
Supplemental FY 2017 and 2016 Breakdown of Basic 1% Property
Tax Rate Not In Redevelopment Project Area 200
Property Tax Rates Direct and Overlapping Property Tax Rates 201
Principal Property Taxpayers 202
Property Tax Levies and Collections 203
Supplemental Top 25 Sales Tax Generators and
Graph — Historical Sales Tax Trends 204
Supplemental Taxable Sales by Category 205
Supplemental Principal Sales Tax Remitters 206
Debt Capacity:
Ratio of Outstanding Debt by Type 207
Ratios of General Bonded Debt Outstanding 208
Supplemental Special Assessment Information 209
Direct and Overlapping Government Activities Debt 210
Legal Debt Margin Information 211
Pledged-Revenue Coverage 212
Demographic and Economic Information:
Demographic and Economic Statistics 213
Principal Employers 214
Supplemental Miscellaneous Statistics.... 215
Operating Information:
Full-Time Equivalent City Government Employees by Function/Program 216
Operating Indicators by Function/Program 217
Capital Asset Statistics by Function/Program 218
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page
Number
SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION
Redevelopment Agency Project Areas Map 220
Tax Allocation Bond Issue information 221
Historical Tax Increment—Redevelopment Property
Tax Trust Fund Summary 222
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December 15, 2017
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, 2017.
The financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and
the Governmental Accounting Standards Board (GASB).Wc believe the data, as presented, is accurate in all
material respects and is presented in a manner that fairly represents the financial position and changes in
financial position of the City as measured by the financial activity of each of its funds. We also believe that all
disclosures necessary to enable the reader to fully understand the City's financial activities have been presented.
Responsibility for the accuracy, completeness and reliability of the information contained in this report rests
with the City.
1 he 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, 2017, was
conducted by Lance Soli & Lunghard, LLP. The auditor's unmodified (-`clean") opinion on the basic financial
statements is included in the Financial Section of this report.
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. The results of the City's annual audit for fiscal year ended
June 30, 2017 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, 2017, 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 oldie City of Palm Desert. Honorable Mayor and Members of the City Council
December 15, 2017
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. The City 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 Enterprise Services
Public improvements, infrastructure and maintenance Golf course
Public art and community promotion Office complex
Planning, zoning, building and engineering Internal service
Housing and community development
Code enforcement and inspections Blended & Discrete Component Units
Economic development, business support and energy PD Housing Authority
conservation PD Financing Authority
Legislative, city clerk, visitor's services, public PD Recreational Facilities Corporation
information, general administration, fiscal services,
human resources, and risk management
Building permitting, inspections and services
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.
The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund Ievel as
a means of accomplishing budgetary control. Open encumbrances are reported as a reservation of fund balance
at the end of each fiscal year. Purchase orders are reviewed to ensure that funds are available and that requests
are properly authorized prior to being released to vendors.
ii
Residents of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 15. 2017
The adopted budget for fiscal year 2016-2017 was prepared in accordance with accounting principles generally
accepted in the United States of America. As reflected in the statements and schedules included in the financial
section of this report, the City continues to meet its responsibility for sound financial management.
LOCAL ECONOMY
The City comprises an area of approximately 26 square miles and, as of January 1, 2017, has a population of
50.740 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. Tourism and sales tax are the City's main
revenue sources. Due to the timing of Palm Desert's incorporation in 1973, the City receives less than 7 percent
of the post-Proposition 13 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. As the first city in Riverside County to create a public art program,
Palm Desert is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts,
a I,1 27-scat theater that hosts a wide variety of A-list entertainers, touring theatrical productions, and arts-
related educational programs; The Living Desert Zoo and Gardens, a 1,200-acre facility containing a wide
array of plants and animals from desert regions around the world; and the Palm Desert Art in Public Places
program, a museum without walls, featuring more than 150 works of art on permanent display throughout the
city.
Palm Desert's active, five-star accredited Chamber of Commerce has more than 1,125 members who work to
promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community.
Noted for its extensive array of retail options, including the world-famous upscale shopping destination of El
Paseo, Palm Desert is home to a variety of malls and retail centers including Westfield Palm Desert, Desert
Crossing,The 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.
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.
The State of California Employment Development Department Labor Market Information Division reported
that the City of Palm Desert had an unemployment rate of 4.0% compared to Riverside County, which had a
rate of 5.7%. The City's balanced foundation of tourism, culture, and education has strengthened the City's
labor force.
MY OF HUM OESERI
ca
Residents oldie City of Palm Desert, Honorable Mayor and Members oldie City Council
December 15, 2017
LONG-TERM FINANCIAL PLANNING
In June 2017 the City Council approved a total of$22.70 million in funding for various capital improvement
projects for the fiscal year of 2017-2018. 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 June 30, 2016. This was the 20th consecutive year that the City has
achieved this prestigious award. 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.
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.
Acknowledgments
The preparation of this report is attributable to the efficient and dedicated staff of the Finance Department who
are individually recognized on the title page. The Mayor and the City Council are credited for their support in
planning and conducting the operations of the City in a prudent, responsible and progressive manner.
Recognition is also given to all employees of the City of Palm Desert who continue to serve our community
with commitment and dedication throughout the year. Our greatest appreciation goes to you, the residents of
Palm Desert, for your continued support, input, and guidance in helping us serve you better, thus preserving our
city's quality of life and reputation for innovation and leadership.
Respectfully submitted.
Lauri Aylaian Janet Moore
City Manager Director of Finance
JLE:jle
iv
GD
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, 2016
kr071,,40401.-.
Executive Director/CEO
V
CITY OF PALM DESERT
List of Principal Officials
as of June 30,2017
City Council - Manager Form of Government
CITY COUNCIL
JAN C. HARNIK
Mayor
SABBY JONATHAN
Mayor Pro-Tempore
KATHLEEN KELLY GINA NESTANDE SUSAN MARIE WEBER
Council Member Council Member Council Member
CITY ADMINISTRATION
LAURI AYLAIAN
City Manager
City Attorney - Best, Best& Krieger, LLP Robert W. Hargreaves
Director of Finance/City Treasurer Janet M. Moore
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
LAURI AYLAIAN
Executive Director
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• viii
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CPAs AND ADVISORS
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, 2017, 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.
PrimeGlobal
203 N.Brea Blvd.,Suite 203 1 Brea, '''" } Pkrr •",1.7 ^l''.
A
LS L=�
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, as
of June 30, 2017, 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 and major special
revenue funds as listed in the table of contents, the schedule of changes in net pension liability and
related ratios, the schedule of plan contributions and the schedule of funding progress be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
I
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements 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
schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2
LSLU::
CPA° AND Ape n
To the Honorable Mayor and Members of the City Council
City of Palm Desert. California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 15, 2017 on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to solely 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.
al>afece, ...,,,lite ;y_ortviziacez.o
Brea, California
December 15. 2017
3
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4
CITY OF PALM DESERT
MANAGEMENT'S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Palm Desert's financial performance for the fiscal year ended
June 30, 2017 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 exceeded its liabilities by$808.61 million (net position).
• The City's governmental activities net position increased by $2.20 million, and the net position of
the business-type activities decreased $0.02 million.
• During the year, the City's revenues were $88.51 million, and expenses were $86.61 million in its
governmental activities, excluding transfers and extraordinary gain, compared to fiscal year 2016,
where revenues were$91.78 million and expenses were$113.56 million.
• In the City's business-type activities, expenses were $0.28 million less than the $9.41 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 $0.51 million less than
its expenses.
• The City's governmental activities program revenues and general revenues decreased by $3.27
million, or 3.56 percent from prior year, while program expenses decreased $26.95 million, or
23.73 percent from prior year.
• Business-type activities revenues increased $0.75 million, from $8.66 million to $9.41 million.
Expenses decreased from the $9.17 million to$9.13 million.
• The City kept its General Fund expenditures within spending limits by$1.42 million. The revenues
available for expenditures were under budget by$0.17 million which was less than 1.00 percent.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and
Statement of Activities {on pages 17, 18 and 19) provide information about the activities of the City as a
whole and present a long-term view of the City's finances. The fund financial statements start on
Page 22. For governmental activities, these fund statements tell how these services were financed in the
short term as well as what remains for future spending. The fund financial statements also report the
City's operation in more detail than the government-wide statements by providing information about the
City's most significant funds and other funds. The remaining fiduciary fund statement provides financial
information about activities for which the City acts solely as a trustee or agent for the benefit of those
outside of the government.
5
REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:
Our analysis of the City as a whole begins on page 17. One of the most important questions asked about
the City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities?"
The Statement of Net Position and the Statement of Activities report information about the City as a whole
and about its activities in a way that answers this question. These statements include all assets and
liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most
private-sector companies. All of the current year's revenues and expenses are taken into account
regardless of when cash is received or paid.
These two statements report the City's net position and changes in them. Net position is the difference
between total assets and deferred outflows of resources less liabilities, 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
Recreation Facilities Corporation. Although legally separate. this 'component unit" is important because
the City is financially accountable for it.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS
Fund Financial Statements:
The fund financial statements provide detailed information about the most significant funds and other
funds, not the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management established many other funds to help it control and manage money for
particular purposes or to show that it is meeting legal responsibilities for using certain taxes. grants, and
other resources. The City has three types of funds governmental, proprietary and fiduciary.
Governmental funds — Most of the City's basic services are reported in governmental funds, which focus
on how money flows in and out of those funds and the balances left at year-end that are available for
spending. These funds are reported using an accounting method called modified accrual accounting,
which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the City's general government
operations and the basic services it provides. Governmental fund information helps determine whether
there are more or fewer financial resources that can be spent in the near future to finance the City's
programs. The differences of results in the Governmental Fund financial statements to those in the
Government-wide financial statements are explained in a reconciliation following each Governmental
Fund financial statement.
6
Proprietary funds — When the City charges customers for the services it provides, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities
are reported in the Statement of Net Position and the Statement of Activities. The City's enterprise funds
are the same as the business-type activities we report in the government-wide statements, but provide
more detail and information such as a statement of cash flows.
Fiduciary funds -- Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial statement
because the resources of those funds are not available to support the City of Palm Desert operations.
The accounting used for fiduciary funds is much like that used for proprietary funds.
THE CITY AS TRUSTEE
Reporting the City's Fiduciary Responsibilities:
The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment
Agency's (Successor Agency) private-purpose trust fund and for certain agency funds held on behalf of
developers and its employees' retiree service stipend fund. The City's fiduciary activities are reported in
separate Statements of Net Position, Statement of Changes in Net Position. Statement of Assets and
Liabilities, and Statement of Changes in Assets and Liabilities. We exclude these activities from the City's
other financial statements because the City cannot use these assets to finance its operations. The City is
responsible for ensuring that the assets reported in these funds are used for their intended purposes.
THE CITY AS A WHOLE
During the fiscal year ending June 30, 2017, the City's combined net position increased $2.18 million from
$806.43 million to $808.61 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 assets (Table 1) and
changes in net assets (Table 2) of the City's governmental and business-type activities.
7
TABLE 1
NET POSITION
(IN MILLIONS)
As of June 30,2017 and 2016
Governmental Business-Type
Activities _ Activities Total
2017 2016 2017 2016 2017 2016
Current and restricted assets $ 349.47 $ 340.25 $ 5.96 $ 5.57 $ 355.43 $ 345.82
Capital assets 449.04 459.64 70.33 71.13 519.37 530.77
TOTAL ASSETS 798.51 799.89 76.29 76.70 874.80 876.59
Deferred outflows of resources $ 9.10 $ 4.26 $ - $ - $ 9.10 $ 4.26
Long-term liabilities
outstanding 43.34 42.71 0.50 0.93 43.84 43.64
Other liabilities 25.76 26.03 1.13 1.09 26.89 27.12
TOTAL LIABILITIES 69.10 68.74 1.63 2.02 70.73 70.76
Deferred inflows of resources $ 4.56 $ 3.66 $ - $ - $ 4.56 $ 3.66
Net position-
Net investment in capital
assets 449.04 459.64 69.83 70.20 518.87 529.84
Restricted 197.82 193.30 - - 197.82 193.30
Unrestricted 87.09 78.81 4.83 4.48 91.92 83.29
TOTAL NET
POSITION $ 733.95 $ 731.75 $ 74.66 $ 74.68 $ 808.61 $ 806.43
Table 1 -Graph
Total Assets& Liabilities
e 1,200
2 1,000 01 lailk,. Jib
800 a
m 400 ro OW Nor mu ■Total Assets
a 200 , Total Liabilities
2017 2016 2017 2016 2017 2016
Governmental Business-Type Total
Activities Activities
8
The City's governmental activities net position increased by 0.30 percent, or $2.20 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 11.87 percent of the
overall total net position. Unrestricted net position increased $8.28 million from $78.81 million in 2016 to
$87.09 million in 2017. The increase can be contributed to three areas; first, there was an increase in
transient occupancy tax totaling $3.81 million attributed to increase in valley wide events that increased
tourism and the increase in the transient occupancy tax rate from 9 percent to 11 percent in January
2017. Second, the City transferred $3.11 million to the Internal Service Funds for future expenditures, and
third, there was a net effect of $3.32 million decrease in the reporting of the City's pension liability that
increased the unrestricted net position.
The increase of$4.52 million in restricted net position was due to the following: restricted capital projects
increased by $5.76 million from $104.40 million in 2016 to $110.16 million in 2017, mainly due to the
$3.55 million contribution from the Successor Agency to the capital properties fund for future capital
expenditures. Restricted special projects decreased by $1.24 million, the majority of which is attributable
to the cost of maintaining the City's affordable apartment complexes at a high standard.
Investment in capital assets decreased $10.60 million. The decrease is attributed to current year
depreciation of $12.51 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, increased
$3.46 million from $804.15 million in 2016 to $807.61 million in 2017. The increase is attributable to the
$3.55 million contribution from the Successor Agency for future capital expenditures. Other major
changes that affected total assets and deferred outflow combined, were the capital assets decrease of
$10.60 million and a $4.84 million increase in deferred outflow of resources which is due to the $4.78
million net difference between projected and actual earnings on pension plan investments (see Note 8d).
Total liabilities and deferred inflows combined increased by $1.26 million from $72.40 in 2016 to $73.66
million in 2017. The increase is due to a net increase in the deferred inflows of resources of$0.90 million
(see Note 8d).
The net position of the business-type activities saw a slight decrease of$0.02 million, from $74.68 million
to $74.66 million. The main factor for the decrease in net position was the transfer out to the General
Fund for its share of the cost to maintain the civic center park. Total liabilities decreased $0.39 million
from $2.02 million in 2016 to $1.63 million in 2017. The decrease in the debt payments on the golf course
golf cart leases (see Note 6) is the major factor for the decrease in total liabilities.
9
TABLE 2
CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30,2017 and 2016
Governmental Business-Type
Activities Activities Total
2017 2016 2017 2016 2017 2016
REVENUES:
Program Revenues:
Charges for services $ 22.68 $ 22.78 $ 8.78 $ 8.52 $ 31.46 $ 31.30
Operating grants and
contributions 7.93 9.50 - - 7.93 9.50
Capital grants and
contributions 7.71 10.84 0.60 0.11 8.31 10.95
General Revenues:
Property taxes 10.85 11.02 - - 10.85 11.02
Transient occupancy tax 15.24 11.43 - - 15.24 11.43
Sales tax 18.39 19.20 - - 18.39 19.20
Other taxes 3.15 3.10 - - 3.15 3.10
Investment earnings 1.04 2.07 0.03 0.03 1.07 2.10
Gain on sale of capital assets 0.02 -
- 0.02
Other revenues 1.52 1.82 - - 1.52 1.82
TOTAL REVENUES 88.51 91.78 9.41 8.66 97.92 100.44
EXPENSES:
General government 15.71 14.84 - - 15.71 14.84
Housing and redevelopment 10.95 8.16 - - 10.95 816
Public safety 34.94 34.01 - - 34.94 34.01
Parks,recreation and culture 9.85 9.22 - - 9.85 9.22
Public works 14.89 47.04 - - 14.89 47.04
Interest on tong-term debt 0.27 0.29 - - 0.27 0.29
Golf Course-Desert Willow - - 8.24 8.16 8.24 8.16
Office Complex-Parkview - - 0.89 1.01 0.89 1.01
TOTAL EXPENSES 86.61 113.56 9.13 9.17 95.74 122.73
INCREASE(DECREASE)IN NET
POSITION BEFORE TRANSFERS 1.90 (21.78) 0.28 (0.51) 2.18 (22.29)
Transfers 0.30 0.24 (0.30) (0.24) - _ -
Extraordinary Gain - 72.14 - - - 72.14
INCREASE(DECREASE)IN NET POSITION 2.20 50.60 {0.02) (0.75) 2.18 49.85
BEGINNING NET POSITION,AS RESTATED 731.75 681.15 74.68 75.43 806.43 756.58
ENDING NET POSITION $ 733.95 $ 731.75 $ 74.66 $ 74.68 $ 808.61 $ 806.43
10
Table 2-Graph
Changes in Net Position
800 80•
— —
700
70 ILIL
600 moo Beginning Net
60 Position
500 50 man Total Revenues
° 400 - 40
_ 300 30 Ending Net
Position
ra 200 20 o Total Expenses
• 100 10
2017 2016 2017 2016
Governmental Activities Business-Type Activities
Governmental Activities
Total revenue (excluding transfers and extraordinary gain) decreased from $91.78 million to $88.51
million, a 3.56 percent decrease. The decrease is partially the result of the capital grants and
contributions decrease of$3.13 million. Other factors that contributed to the changes in revenues are as
follows:
• Transient occupancy tax increase from $11.43 million in 2016 to $15.24 million in 2017, an
increase of$3.81 million. This increase offset by:
• SB 107 allowed cities to accrue interest at a rate of 3 percent annually on outstanding advances
to the Successor Agency. In 2016, the City accrued interest totaling $3.74 million which
represented five and one half years of interest. In 2017, the City only accounted for$0.68 million
in interest representing only one year of interest on the advances to the Successor Agency.
• The City's combined general property taxes and sales tax decreased by $0.98 million from
$30.22 million in 2016 to$29.24 million in 2017.
Total expenses decreased from $113.56 million to $86.61 million, a 23.73 percent decrease. The primary
reason for the decrease was in the public work function that decreased 32.15 million. The decrease is
attributed to the capital assets transfer to Caltrans of the Monterey interchange in 2016 and the use of
unspent capital bond funds to defease a portion of the debt for the University Park Community Facilities
District, also in 2016. Additional factors in the change in amount of expenses for the year include: general
government increased $0.87 million; Housing and Redevelopment increased $2.79 million; and public
safety increased $0.93 million which was attributed to the increase in police costs from $19.67 million to
$19.83 million and the increase in fire protection services from $11.41 million to$12.10 million; and parks,
recreation and culture increased $0.63 million.
11
The following schedule represents the net cost of providing services:
Governmental Activities
Net(Expense) Revenue
(In Millions)
2017 2016
General government ($11.51) ($10.44)
Housing and redevelopment (2.67) 5.47
Public safety (23.99) (23.05)
Parks, recreation and culture (6.55) (5.16)
Public works (3.30) (36.98)
Interest on long term debt (0.27) (0.29)
Total ($48.29) ($70.45)
2017 2016
Governmental Activities Governmental Activities
Net(Expense)Revenue Net(Expense)Revenue
General government
6% 1%
23% 0%
159011. o ■Housing and
53°/0 14� redevelopment
_7% ■Public safety
4%
■Parks,recreation&
culture
7% ■Public works
33%
51%
•Interest on long
term debt
Business-type Activities
In the business-type activities, total revenues increased by 8.66 percent from $8.66 million to $9.41
million, a $0.75 million increase. The overall increase was related to the dynamic pricing structure. Total
green fees were $0.236 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 increased the overall average green fee by $2.70 per round. 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 $0.04 million from $9.17 million to $9.13
million. Both Desert Willow and the City continued to implement effective and efficient methods to control
costs without impacting service.
12
THE CITY'S FUNDS
On Page 22, the governmental funds balance sheet is shown. The combined fund balance of $295.05
million increased from $288.43 million, or 2.30 percent. This total includes the General Fund balance of
$83.99 million, which increased by $1.63 million from prior year. The City's General Fund balance has a
non-spendable balance of$9.07 million that includes advances, loans and notes, and prepaid costs, plus
$0.66 million in assigned fund balance, and$74.26 million of unassigned fund balance. The change in the
General Fund's balance was due to growth in transient occupancy tax. Other major fund balance changes
are noted below:
■ The Prop A Fire Tax Special Revenue Fund: The fund balance remained at $2.30 million. The
City transferred $3.21 million to cover the shortage.
■ The Housing Asset Fund: The fund balance had a decrease of$0.86 million. The housing asset
fund reimbursed the housing authority for costs associated with improvements to the Authority
owned apartment complexes.
• Measure A Special Revenue Fund the fund balance increased from $19.25 million to $21.55
million. Projects budgeted at $25.89 million are at their early stage which resulted in
non-spending of available funds.
• Housing Authority Fund: This fund had a minor decrease of$0.50 million from $20.74 million to
$20.24 million.
• Capital Properties Fund: The fund balance increased $3.44 million from $65.71 million to $69.15
million. The increase was due to the contribution from the Successor Agency as described
previously.
More detailed information about the combined fund balance reserves is presented in Note 9 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, adjustments were made as department heads requested adjustments to their budgets to meet
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$57.55 million were $0.17 million less than the
final budgeted revenues of $57.72 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City totaling $33.56 million, or 58.31 percent of the total General Fund
actual revenues.
The General Fund actual ending expenditures of $55.93 million were $1.42 million less than the final
budget of $57.35 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $53.28 million compared to the final budget of $57.35
million, a $4.07 million increase. The major change was due to the appropriations of an additional $4.08
million in transfers out to other funds to invest in infrastructure and technology and retiree health stipends.
13
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2017, the City had $519,37 million invested in a broad range of capital assets, including
land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles, golf courses
and equipment (See Table 3). This amount represents a net decrease (including additions and
deductions)of$11.40 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, 2017 and 2016
Govemmental Business-Type
Activities _ Activities Total
2017 2016 2017 2016 2017 2016
Land $ 79.45 $ 79.63 $ 53.31 $ 52.74 $ 132.76 $ 132.37
Construction-in-progress 2.02 2.83 - - 2.02 2.83
Buildings and improvements
other than buildings 105.69 111.66 16.40 17.26 122.09 128.92
Machinery and equipment 2.79 2.40 0.62 1.13 3.41 3.53
Infrastructure& right-of-way 259.09 263.12 - 259.09 263.12
TOTALS $ 449.04 $ 459.64 $ 70.33 $ 71.13 $ 519.37 $ 530.77
Table 3-Graph
Capital Assets at Year-End
(Net of Depreciation in Millions)
700 -'
K 600
° 5Q0 : :truon
400 in Progress
300 J •Buildings and Improvements
20 200
■Equipment
° 10D
Cs 1 ,1 ■Infrastructure
■Totals
2017 2016 2017 2016 2017 2016
Governmental Business-Type Total
Activities Activities
•
14
This year's major additions included (in millions).
Affordable housing apartment complexes $ 5.17
Street improvements 1.24
Equipment and software purchases 0.39
Land acquisitions 0.59
$ 7.39
The City's fiscal year 2018 adopted capital budget calls for an additional $22.70 million to be spent, plus
continuing capital projects of $40.43 million from prior year, with the majority being spent on street,
infrastructure and golf course improvements. Projects will be funded with existing bond proceeds ❑r funds
that have been designated by an outside party for specific use. More detailed information about the City's
capital assets is presented in Note 1g and Note 5 to the financial statements.
Debt
At year-end, the City's governmental activities had S43.34 million in bonds, claims, compensated
absences and pension liability versus $42.71 million last year, an increase of $0.63 million as shown in
Table 4. The major increase was the City's pension liability that grew from $36.93 million to $37.55
million.
TABLE 4
❑UTSTANDING DEBT,AT YEAR-END
(IN MILLIONS)
For the years ended June 30,2017 and 2016
Governmental Business-Type
Activities Activities Total
2017 2016 2017 2016 2017 2016
Compensated absences payable $ 2.58 $ 2.41 $ - $ - $ 2.58 $ 2.41
Capital leases - - 0.50 0.93 0.50 0.93
Claims and judgements payable 0.40 0.32 - - 0.40 0.32
Special assessments debt with
government commitment 1.41 1.45 - - 1.41 1.45
Limited Obligation Improvement
bonds 1.40 1.60 - - 1.40 1.60
Pension liability 37.55 36.93 - - 37.55 36.93
TOTALS $ 43.34 $ 42.71 $ 0.50 $ 0.93 $ 43.84 $ 43.64
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 decreased $0.43 million from $0.93 million to $0.50 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 decrease in the City's business-type activities debt was directly related to the
principal payments made towards the equipment leases. The City's business-type activities were able to
meet its current year debt obligation in a timely manner. More detailed information about the City's
long-term liabilities is presented in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
In preparing the budget for fiscal year 2018, 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 in line with budget
considerations, including but not limited to parks, roads, and buildings; and 3) Invest in infrastructure and
technology to address deferred maintenance and outdated hardware/software 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 police and fire protection services.
The 2018 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 2017-2018 Financial Plan can be obtained by contacting the City's
Finance Department or by visiting the City's website at www.cityofnalmdesert.org.
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.
16
CITY OF PALM DESERT
STATEMENT OF NET POSITION
JUNE 30, 2017
Component
Primary Government Unit
Palm Desert
Recreational
Governmental Business-Type Facilities
Activities Activities Total Corporation
ASSETS:
Cash and investments $ 186:593.871 $ 5,000,710 $ 191,594.581 $ 213,800
Receivables:
Accounts 1.961,472 172,577 2,134,049 4,982
Notes 1.411.200 - 1,411,200 -
Accrued interest 5.437,030 - 5,437,030 -
Loans 10,472.735 - 10,472,735 -
Internal balances 500.000 (500,000) - -
Prepaid costs 171,759 58,918 230,677 11,935
Deposits 15,171,351 - 15,171,351 -
Due from other governments 6,013,006 - 6,013,006 -
Inventories 4,520 265,461 269,981 45,321
Property held for resale 61,516 - 61,516 -
Due from component unit 285.000 964,957 1,249.957 -
Restricted assets:
Cash with fiscal agent 79,347,167 - 79,347,167 -
Advances to Successor Agency 32,614,462 - 32,614,462 Net OPEB asset 9,432,358 - 9,432,358 -
Capital assets. not being depreciated 202,547,680 53,304.965 255,852,645 -
Capital assets. net of depreciation 246,489,490 17,024,688 263,514,178 -
TOTAL ASSETS 798,514,617 76,292,276 874,806,893 276,038
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows from pensions 9,097,330 - 9.097.330 -
LIABILITIES:
Accounts payable 9,011,491 914,721 9,926,212 56,795
Accrued liabilities 573,751 43,609 617,360 9,763
Accrued interest 85,960 - 85.960 -
Due to primary government - - - 1,249,957
Unearned revenue 15,329,518 148,983 15,478,501 84,350
Deposits payable 757,840 25,854 783,694 -
Long-term liabilities:
Due within one year 450,000 225,706 675,706 -
Due in more than one year 5,340.402 274,175 5.614,577 Net pension liability 37,547,871 - 37.547.871 -
TOTAL LIABILITIES 69,096,833 1,633,048 70,729,881 1,400,865
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows from pensions 4.561.446 - 4,561,446 -
NET POSITION:
Net investment in capital assets 449,037,170 69,829,772 518,866,942 -
Restricted for'
Special projects 87,662.195 - 87,662.195 -
Capital projects 110.162.409 - 110,162,409 -
Unrestricted(deficit) 87,091.894 4,829,456 91,921,350 (1,124,827)
TOTAL NET POSITION $ 733,953,668 $ 74,659,228 $ 808,612,896 $ (1,124,827)
See Notes to Financial Statements -}7
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2017
Program Revenues
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary Government:
Governmental activities:
General government $ 15.708.054 $ 2,095.648 $ 739.446 $ 1,360,028
Housing and redevelopment 10,954,630 6.851.450 - 1,420,989
Public safety 34.943,220 10.603.708 305.634 45,876
Parks, recreation and culture 9,850,200 793,527 1,894.712 614.043
Public works 14,892.145 2,327,521 4,992.108 4.259.419
Interest on long-term debt 271.603 - - -
Total governmental activities 86,619,852 22,681,854 7,931,900 7,710,355
Business-type activities:
Desert Willow Golf Course 8.243.515 7.497,664 - 605.186
Parkview Office Complex 893.125 1.284.462 - -
Total Business-Type Activities 9,136,640 8,782,126 - 605,186
Total Primary Government $ 95,756,492 $ 31,463.980 $ 7,931,900 $ 8,315,541
Component Unit:
Palm Desert Recreational Facilities Corp. $ 2,459,291 $ 2,681,025 $ - $ -
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
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning of year
Net position-end to year
See Notes to Financial Statements 18
Net(Expenses)Revenues and Changes in Net Position
Component
Primary Government Unit
Palm Desert
Recreational
Governmental Business-Type Facilities
Activities Activities Total Corporation
$ (11,512,932) $ - $ (11,512,932) $ -
(2,672,191) - (2,672,191) -
(23,988,002) - (23,988,002) -
(6,547,918) - (6,547,918) -
(3,303,097) - (3,303,097) -
(271,603) - (271,603) -
(48,295,743) - (48,295,743) -
(140,665) (140,665) -
-
391,337 391,337 -
250,672 250,672 -
(48,295,743) 250,672 (48,045,071) -
$ - $ - $ - $ 221,734
10,848,798 - 10,848,798 -
15,238,727 - 15,238,727 -
18,394,227 - 18,394,227 -
3,146,702 - 3,146,702 -
1,041,232 26,494 1,067,726 -
1,522,363 - 1,522,363 -
2,145 - 2,145 -
300,000 (300,000) - -
50,494,194 (273,506) 50,220,688 -
2,198,451 (22,634) 2,175,617 221,734
731,755,217 74,682,062 806,437,279 (1,346,561)
$ 733,953,668 $ 74,659,228 $ 808,612,896 $ (1,124,827)
See Notes to Financial Statements 19
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20
FUN❑ FINANCIAL STATEMENTS
21
s
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2017
Special Revenue Funds
Prop A Fire Housing Asset
General Measure A Tax Fund
ASSETS:
Pooled cash and investments S 76,758,736 S 20.994.922 S 2.400.202 S 20.818.865
Receivables'
Accounts 1.575,755 - 4.813 -
Assessments - - -
Notes 1,410.000 - - 1.200
Interest 2.072.008 - - 958.186
Loans 39.806 - - 5.586,809
Prepaid costs 146,373 - - 430
Deposits - 15.171,351 -
Due from other governments 3.959,547 558,043 1,111,693 -
Due from other funds 2.138,000 - - 4.531.000
Inventories - - - -
Property held for resale - - - 61,516
Due from component unit 285,000 - -
Restricted assets:
Cash and investments with fiscal agent - - - 5,520,957
Advances to Successor Agency 9.236.000 - - 9.959 462
TOTAL ASSETS 5 97,621,225 $ 36,824,316 5 3,516,708 $ 48,438,425
Liabilities,Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable $ 6,878.581 $ 107,698 $ 1.214.408 5 600
Accrued liabilities 414,809 - -
Unearned revenues 21.370 15,171,351
Deposits payable _ _ - -
Due to other funds 1.847.200
- -
TOTAL LIABILITIES 9,161,960 15,279,049 1,214,408 600
DEFERED INFLOWS OF RESOURCES:
Unavailable revenue 4 472.721 -
_ 916,343
4,472,721 - - 916,343
FUND BALANCES:
Nonspendable 9,067.979 - _
Restricted - 21,545,267 2.302.300 47.521 482
Committed
Assigned 658.817
Unassigned 74 259 748 - -
Total Fund Balances 83,986,544 21,545,267 2,302,300 47,521,482
Total Liabilities,Deferred Inflows of
Resources,and Fund Balances $ 97,621,225 $ 36,824,316 $ 3,516.708 $ 48,438,425
See Notes to Financial Statements 22
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2017
Special Capital
Revenue Projects
Funds Funds
Other Total
Housing Capital Governmental Governmental
Authority Properties Funds Funds
ASSETS:
Pooled cash and investments $ 18,235,947 5 15 703 $ 35,716,158 $ 174,940,533
Receivables:
Accounts 3,248 - 369,982 1,953,798
Assessments - - 1,276,600 1,276,600
Notes - - - 1,411,200
Interest - 133.306 2,273,530 5,437,030
Loans - - 3,846,120 10,472,735
Prepaid costs - - 1,276 148,079
Deposits - - - 15,171,351
Due from other governments - - 283,723 6,013,006
Due from other funds - - 500,000 7,169,000
Inventories - - 4,520 4,520
Property held for resale - - - 61,516
Due from component unit - - - 285,000
Restricted assets:
Cash and investments with fiscal agent 2,822,478 69,005,389 1,998,343 79,347,167
Advances to Successor Agency - - 13,419,000 32,614,462
TOTAL ASSETS $ 21,061,673 $ 69,154,398 $ 59,689,252 $ 336,395,997
Liabilities,Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable $ 155,285 $ 2,360 $ 636,151 S 8,995,083
Accrued liabilities 144,121 - 14,821 573,751
Unearned revenues 13,221 - 123,576 15,329,518
Deposits payable 513,384 - 244,456 757,840
Due to other funds - - 4,821,800 6,669,000
TOTAL LIABILITIES 826,011 2,360 5,840,804 32,325,192
DEFERED INFLOWS OF RESOURCES:
Unavailable revenue - - 3,538,055 8,927,119
- 3,538,055 8,927,119
FUND BALANCES:
Nonspendable - - 1,276 9,069,255
Restricted 8,360,174 69,136,335 22,178,916 171,044,474
Committed 11,875,488 - 4,895,567 16,771,055
Assigned - 15,703 23,234,634 23,909,154
Unassigned - - - 74.259.748
Total Fund Balances 20,235,652 69,152,038 50,310,393 295,053,686
Total Liabilities,Deferred Inflows of
Resources,and Fund Balances $ 21,061,673 $ 69,154,398 $ 59,689,252 5 336,305,997
See Notes to Financial Statements 23
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• 24
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30,2017
Total fund balance for governmental funds $ 295,053.686
Amounts reported far 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 govenmental fund activity. 446,925,174
Deferred outflows related to pension related items are not included in the governmental
fund activity
Contributions made after the measurement date $ 4,818,804
Net Difference between projected and actual earning on plan investments 4,278,526 9,097,330
Deferred inflows related to pension related items are not included in the governmental
fund activity:
Changes in assumptions (784,256)
Differences between expected and actual experiences (3,777.190) (4,561,446)
Long-term debt,compensated absences and total net pension liability are not included in
the governmental fund activity:
Bonds (2,808,000)
Claims and judgments (398,683)
Net pension liability (37,547,871) (40,754,554)
Interest on long-term debt is not accrued in governmental funds,but rather is
recognized as an expenditure when due. (85,960)
Other post employment benefit asset is not available to fund current expenditures
for governmental funds and therefore is not reported as an asset in the
governmental funds. 9,432,358
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity. 7,658,193
Internal service funds are used by management to charge the costs of certain activities,
such as equipment and comensated absences to individual funds. The assets and
liabilities of the internal service fund must be added to the Statement of Net Position.
11,188,887
Net Position of governmental activities $ 733,953,668
See Notes to Financial Statements 25
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2017
Special Revenue Funds
Prop A Fire Housing Asset
General Measure A Tax Fund
REVENUES:
Taxes $ 50,218,986 $ 2,627,896 $ 5,684,299 $ -
Special assessments collected - - 2,101,472 _
Licenses and permits 1,442,491 - - -
Intergovernmental revenues 1,448,108 1,430,603 1,064,177 -
Rental income 161,370 - - -
Charges for services 1,462,885 - - -
investment earnings 64-4,341 113,730 16,781 250,294
Fines and forfeitures 102,457 - - -
Contributions from other governments - - _ -
Miscellaneous 599,232 - 18,950 102,216
TOTAL REVENUES 56,079,870 4,172,229 8,885,679 352,510
EXPENDITURES:
Current
General government 15,807,057 - - -
Public safety 22,273,691 - 12,095,542 -
Parks,recreation and culture 4,227,579 - - -
Public works 6,052,284 623,077 - -
Housing and redevelopment - - - 1,209,753
Capital outlay 66,500 1,250,356 - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges _ - - -
TOTAL EXPENDITURES 48,427,111 1,873,433 12,095,542 1,209,753
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 7,652,759 2,298,796 (3,209,86a (857,243)
OTHER FINANNCING SOURCES(USES):
Transfers in 1,472,852 - 3,209,863 -
Transfers out (7,501,722) - - -
TOTAL OTHER FINANCING
SOURCES(USES) (6,028,870) - 3,209,863 -
NET CHANGE IN FUND BALANCES 1,623,889 2,298,796 - (857,243)
FUND BALANCES-BEGINNING OF YEAR 82,362,655 19,246,471 2,302,300 48,378,725
FUND BALANCES-END OF YEAR $ 83,986,544 $ 21,545,267 $ 2,302,300 $ 47,521,482
See Notes to Financial Statements 26
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2017
Special Capital
Revenue Projects
Funds Funds
Other Total
Housing Capital Governmental Governmental
Authority Properties Funds Funds
REVENUES:
Taxes $ - $ - $ 935,364 $ 59,466,545
Special assessments collected - - 1,216,642 3,318,114
Licenses and permits - - 236.218 1,678,709
Intergovernmental revenues 1,094.110 - 2,212.517 7,249,515
Rental income 6.278.088 - - 6.439,458
Charges for services - - 893,478 2,356,363
Investment earnings 95.800 429,769 535,509 2.086,224
Fines and forfeitures - - 32,819 135,276
Contributions from other governments - 3,550,991 - 3,550,991
Miscellaneous 38 - 1.873,997 2,594,433
TOTAL REVENUES 7,468,036 3,980,760 7,936,544 88,875,628
EXPENDITURES:
Current
General government - - 1,080.236 16.887,293
Public safety - - 305.185 34,674,418
Parks,recreation and culture - - 2,930.242 7,157,621
Public works - 540,451 1,579.082 8,794,894
Housing and redevelopment 7.318,100 - 711,827 9,239,680
Capital outlay 1,578 - 850,601 2.169,035
Debt service:
Principal retirement - - 237,000 237,000
Interest and fiscal charges - - 277.814 277.814
TOTAL EXPENDITURES 7,319,678 540,451 7,971,987 79,437,955
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 148,358 3,440,309 (35.443) 9,437,673
OTHER FINANNCING SOURCES(USES):
Transfers in 2,884,402 - 1,839,771 9,406,888
Transfers out (3,536,229) - (1.180.477) (12.218,428)
TOTAL OTHER FINANCING
SOURCES(USES) (651,827) - 659,294 (2,811,540)
NET CHANGE IN FUND BALANCES (503,469) 3,440.309 623,851 6,626,133
FUND BALANCES-BEGINNING OF YEAR 20,739.131 65,711.729 49.686.542 288.427,553
FUND BALANCES-END OF YEAR $ 20,235,662 $ 69,152,038 $ 50,310,393 $ 295,053,686
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 30,2017
Net change in fund balances-total governmental funds $ 6,626,133
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 $ 2,169,035
Gaint(foss)on sale and disposal of capital assets (797,986)
Contributed capital assets 30,203
Depreciation (12.190,852) (10.789,600)
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position. 237,000
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 6,211
Net change in claims and judgments for the current period (74,351) (68.140)
Pension obligation expenses is an expenditure in the governmental funds,
but reduce the Net Pension Liability in the statement of net position. 3,316,251
Governmental funds report all contributions in relation to the annual required
contribution(ARC)for OPEB as expenditures, however in the statement
of activities only the ARC is an expense. 707,621
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities.These are included in the intergovernmental revenues
in the governmental fund activity. (446.212)
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. 2.615.398
Change in net position of governmental activities $ 2,198,451
See Notes to Financial Statements 28
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2017
Business-Type Activities-
Enterprise Funds
Major Fund Other Fund Governmental
Parkview Activities-
Desert Willow Office Total Internal
Golf Course Complex Enterprise Funds Service Funds
ASSETS:
CURRENT ASSETS:
Cash and investments $ 627,937 $ 4,372.773 $ 5,000,710 $ 11,653,338
Receivables
Accounts 121,745 50,832 172,577 -
Prepaid costs 58,447 471 58,918 23.680
Inventories 265,461 - 265,461 -
Due from component unit(PDRFC) 964.957 - 964.957 -
TOTAL CURRENT ASSETS 2,038,547 4,424,076 6,462,623 11,677,018
CAPITAL ASSETS:
Nondepreciable 53,304,965 - 53,304,965 130.668
Depreciable,net 10,122,829 6.901.859 17,024,688 1,981.328
CAPITAL ASSETS,NET 63,427,794 6,901,859 70,329,653 2,111,996
TOTAL ASSETS $ 65,466,341 $ 11,325,935 $ 76,792,276 $ 13,789,014
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable $ 888,539 $ 26.182 $ 914,721 $ 16.408
Accrued liabilities 43,609 - 43.609 -
Unearned revenues 136,735 12,248 148.983 -
Deposits payable - 25,854 25.854 -
Due to other funds 500,000 - 500,000 -
Compensated absences - - - 300,000
Capital leases 225,706 - 225.706 -
TOTAL CURRENT LIABILITIES 1,794,589 64,284 1,858,873 316,408
NONCURRENT LIABILITIES:
Compensated absences - - - 2.283119
Capital leases 274,175 - 274.175 -
TOTAL NONCURRENT LIABILITIES 274,175 - 274,175 2,283,719
TOTAL LIABILITIES 2,068,764 64,284 2,133,048 2,600,127
Net Position:
Net investment in capital assets 62,927,913 6,901,859 69,829,772 2,111,996
Unrestricted 469,664 4.359,792 4.829,456 9,076,891
Total Net Position 63,397,577 11,261,651 74,659,228 11,188,887
Total Liabilities,Deferred Inflows
of Resources,and Net Position $ 65,466,341 $ 11,325.935 5 76,792,276 $ 13,789,014
See Notes to Financial Statements 29
aiMEMMMlEM
CITY OF PALM DESERT
STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2017
Business-Type Activities-Enterprise Funds
Major Fund Other Fund Governmental
Parkview Activities-
Desert Willow Office Total Internal
Golf Course Complex Enterprise Funds Service Funds
OPERATING REVENUES:
Fees and rentals $ 6,377.618 $ 1,281,678 $ 7,659,296 $ -
Miscellaneous - 2,784 2 784 -
Merchandise sales 1,120,046 - 1.120.046 -
TOTAL OPERATING REVENUES 7,497,664 1 28� 8,782,126
OPERATING EXPENSES:
General and administrative 2174.636 181,264 2.355.900 243,798
Cost of merchandise 445,272 - 445,272 -
Maintenance and operations 4.479,279 332,093 4,811,372 20.356
Depreciation and amortization 1.070.652 379,768 1,450,420 320.873
TOTAL OPERATING EXPENSES 8,169,839 893,125 9,062,964 585,029
OPERATING INCOME(LOSS) (672.175) 391,337 (280,838) (565.029)
NONOPERATING REVENUES(EXPENSES)
Interest revenue 1,188 25,306 26,494 56,539
Interest expense (73.676) - (73,676) -
Capital contributions 605,166 - 605,186 30,203
Gain(loss)on disposal of capital assets - - - 2,145
TOTAL NONOPERATING
REVENUES(EXPENSES) 632,698 25,306 658,004 88,887
INCOME(LOSS)BEFORE (139,477) 416,643 277.166 (496.142)
TRANSFERS
TRANSFERS IN - - - 3.111.540
TRANSFERS OUT - (300.000) .1300,000) -
CHANGE IN NET POSITION (139,477) 116,643 (22,834) 2,615.398
NET POSITION-BEGINNING OF YEAR 63,537,054 11,145.008 74,682,062 8,573,469
NET POSITION-END OF YEAR $ 63,397 677 $ 11,261,661 $ 74,659,228 S 11,188,887
See Notes to Financial Statemsnb 30
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2017
Major
Fund Other Fund Governmental
Total Activities-
Desert Willow Parkview Enterprise Internal Service
Golf Course Office Complex Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 7.624,754 5 1.282.560 $ 8,907,314 5 4,569
Payments to suppliers (7.063,784) (524 052) (7.587,836) (27.630)
Cash paid to employees for services - - - (73,744)
NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES 560,970 758,508 1,319,478 (96,814)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds - - - 3,111,540
Interest paid on loan (20.000) - (20,000) -
Cash paid to other funds - 000,000) (300,0002 -
NET CASH PROVIDED{USED)BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES (20,000) {300,000) {320,000) 3,111,540
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (42,540) - (42,540) (472.720)
Principal paid on leases (429.979) - (429,979) -
Interest paid on leases (53,676) - (53,676) -
Proceeds from sales of capital assets - - 2.145
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (526,195) - {526,195) (470,575)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 1,188 25.306 26.494 56.539
Net Cash Provided(Used)by
Investing Activities 1,188 25,306 26,494 56,539
NET INCREASE(DECREASE)IN
CASH AND CASH EQUIVALENTS 15,963 483,814 499,777 2,600,690
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 511.974 3.888.959 4,500.933 9.052.648
CASH AND CASH EQUIVALENTS-
END OF YEAR $ 627,937 $ 4,372,773 $ 5.000,710 $ 11,653,338
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES:
Operating income(loss) $ (672.1751. 5 391.337 5 (280.838) $ (585,029)
Adjustments to reconcile operating
income(loss)to net cash provided
(used)by operating activities:
Depreciation and amortization 1.070.652 379,768 1,450.420 320.873
Changes in assets and liabilities.
(Increase)decrease in receivables,net (107.064) (2.790) (109,854) 4.560
(Increase)decrease in prepaid costs 14,721 1.178 15.899 (23.680)
(Increase)decrease in inventories (7,115) - (7.115) -
(Increase)decrease in due
from component unit 205.690 - 205.690 -
Increase(decrease)in accounts payable
and accrued liabilities 27,797 (12,077) 15.720 16.408
Increase(decrease)in deposits payable - 204 204 -
Increase(decrease)in unearned revenue 28.464 888 29,352 -
Increase(decrease)in compensated absences - - - 170,054
Total Adjustments 1,233,145 367,171 1,600,316 488,215
NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES $ 560,970 S 758,508 $ 1,319,478 $ (96,814)
NONCASH ITEMS:
Capital Contributions 5 505.186 5 - $ 605.186 $ 30.203
See Notes to Financial Statements 31
CITY OF PALM DESERT
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30,2017
Private-Purpose
Trust Fund
Successor Agency
to the Palm Desert
Redevelopment
Agency Agency Private-
Funds Purpose Trust Fund
Assets:
Pooled cash and investments $ 13,953.575 $ 25.072.695
Receivables:
Assessments 57,387,797 -
Accrued interest 7.685 26.436
Prepaid costs - 1.960.868
Due from other governments 358.552 -
Restricted assets:
Cash and investments with fiscal agents 5,454,155 15,003.803
Capital assets'
Capital assets,not being depreciated - 35,501.118
Capital assets,being depreciated 929.773
Total Assets $ 77,161,764 $ 78,494,693
Deferred Outflows of Resources:
Deferred charge on refunding $ 74.908
Total Deferred Outflows of Resources $ 74,908
Liabilities:
Accounts payable 5 - $ 437,207
Deposits payable 77.161,764 -
Long-term liabilities:
Due in one year - 14,235,000
Due in more than one year - 257.321,100
Advances from City of Palm Desert - 22.655,000
Interest payable 6.843.443
Advances from Housing Authority - 9.959.462
Total Liabilities $ 77,161,764 $ 311,451,212
Deferred Inflows of Resources:
Deferred charge on refunding 5 736.147
Total Deferred Inflows or Resources $ 736,147
Net Position:
Held in trust S (233,617,758)
Total Net Position $ (233,617,758)
See Notes to Financial Statements 32
CITY OF PALM DESERT
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30,2017
Private-Purpose Trust
Fund
Successor Agency to
the Palm Desert
Redevelopment
Agency Private-
Purpose Trust Fund
ADDITIONS:
Taxes $ 39,264,796
Investment income 132.750
Other 833
TOTAL ADDITIONS 39,398,379
DEDUCTIONS
Housing and development 5.340,442
Interest 13,820,797
Depreciation 31,623
TOTAL DEDUCTIONS 19,192,862
Changes in Net Position 20,205,517
NET POSITION-BEGINNING OF YEAR (253.823,275)
NET POSITION-END OF YEAR $ (233,617,758)
See Notes to Financial Statements 33
THIS PAGE INTENTIONALLY LEFT BLANK
34
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
Note 1: Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The City of Palm Desert was originally incorporated on November 26, 1973,as a General
Law City. In December 1997, Measure LL was enacted following a vote by Palm Desert
residents,which adopted a City Charter.The City operates under a Council-Manager form
of government and provides the following services, public safety (police and fire),
highways and streets, public improvements, community development(planning, building
and zoning)and general administrative services.
The City has defined its reporting entity in accordance with accounting principles generally
accepted in the United States of America which provides guidance for determining
which governmental activities, organizations and functions should be included in the
reporting entity. The Basic Financial Statements present information on the activities of
the reporting entity,which include the City of Palm Desert(the primary government)and
its component units, entities for which the government is considered financially
accountable.
Accounting principles generally accepted in the United States of America require that the
component units be separated into blended or discretely presented units for reporting
purposes. The following criteria were used in determination of blended component units:
appointment of the governing board and fiscal dependence. Although legally separate
entities, blended component units are, in substance, part of the City's operations.
Therefore, they are reported as part of the primary government. Discretely presented
component units are reported in a separate column in the basic financial statements to
emphasize that they are legally separate from the City.
Blended Component Units
Following are descriptions of legally separate component units for which the City is financially
accountable that are blended with the Primary Government. The governing bodies of
these component units are substantially the same with operational responsibility as the City
and provides a financial benefit.
The Palm Desert Housing Authority (Housing Authority) was established by the City
Council in January 1998;and is responsible for the administration of providing affordable
housing in the City.The Housing Authority transactions are reported in the governmental
funds balance sheet as a major fund.
The Palm Desert Financing Authority (Financing Authority) was formed on
January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the
proceeds to the City and Agency.The Financing Authority's capital related transactions
are reported in the governmental fund financial statements in the capital projects funds,
and the collection of assessments and payments of debt service is recorded in the
fiduciary funds.
The City Council of Palm Desert is the governing body for the Housing Authority and
Financing Authority.
35
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
Separate financial statements are not issued for the Housing Authority and Financing
Authority.
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 Goff 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. 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, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate
funds, each of which is considered to be a separate accounting entity. Each fund is
accounted for by providing a separate set of self-balancing accounts that constitute its
assets, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses. Funds are organized into three major categories:governmental,
proprietary and fiduciary. An emphasis is placed on major funds within the governmental
and proprietary categories.
A fund is considered major if it is the primary operation fund of the City or meets the following
criteria:
a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of that individual governmental or
enterprise fund are at least 10%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, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent of the
City Council is that the costs(expenses including depreciation) of providing goods and
services to the general public on a continuing basis be financed or recovered primarily
through user charges.
The Primary Governments 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 Discrete Component Units Enterprise 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, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
The Measure A Special Revenue Fund - In 1988, Riverside County voters approved a
half-cent sales tax, known as Measure A,to fund a variety of highway improvements, local
street and road maintenance, commuter assistance and specialized transit projects. This
fund is used to collect this tax, and pursuant to the provision of Measure A
(Ordinance No. 88-1 and Ordinance No. 02-001 of the County of Riverside) it is restricted
for local street and road expenditures only.
The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax
collected within the City for upgrading fire protection and prevention. Its use is restricted to
obtaining,furnishing, operating and maintaining fire protection and prevention services
(currently under contract with Riverside County Fire Department)equipment or apparatus.
This fund is reported as a major fund because the tax collected is a voter approved
measure.
The 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 Housing Authority Special Revenue Fund is used to account for revenues and
expenditures related to rental units owned by the Housing Authority, established in
January, 1998.
The Capital Properties Capital Projects Fund is used to account for the cost of city
owned properties that will either be sold or for the construction of public facilities, and the
proceeds of bond funds for capital related properties.
Proprietary Fund
The Desert Willow Golf Course Fund is used to account for the fees collected and expenses
incurred in connection with operating the municipal golf course in the City of
Palm Desert.
c. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded
regardless of the measurement focus applied.
On the government-wide Statement of Net Position and the Statement of Activities, both
governmental and business-like activities are presented using the economic resources
measurement focus. The accounting objectives of the economic measurement focus are
the determination of operating income, changes in net position (or cost recovery),financial
position and cash flows. All assets, deferred outflows of resources, liabilities and deferred
inflows of resources (whether current or noncurrent) associated with their activities are
reported.
In the fund financial statements, the "current financial resources" measurement focus or
the"economic resources"measurement focus is used as appropriate:
39
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
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.
40
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
The accrual basis of accounting is followed by the proprietary fund and private purpose
trust fund. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when the liability is incurred or economic assets are
used.
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing goods and
services in connection with a proprietary fund's principal ongoing operations. The principal
revenue of the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds
are charges to customers for use of the golf course and rental fees. Operating expenses
for enterprise funds include the cost of sales and services, administrative expenses and
depreciation on capital assets.All revenues and expenses not meeting this definition are
reported as non-operating revenues and expenses.
d. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance
sheet will sometimes report a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to future periods and so will not be recognized as an
outflow of resources(expense/expenditure) until that time. The City has the following
items that qualify for reporting in this category:
• Deferred amount on refunding. A deferred amount on refunding results from the
difference in the carrying value of the refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
• Deferred outflows related to pensions. This amount is equal to employer contributions
made after the measurement date of the net pension 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.
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: sales
taxes, investment income, grants, notes receivables collections and capital
reimbursements from developers. 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, 2017
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 3.2 and 3.1 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
3.2 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.
The City has reported general infrastructure assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset
or materially extend asset lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component units,
are depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 years
Improvements other than buildings 20 years
Machinery and equipment 5 to 8 years
Infrastructure 20 to 75 years
g. Appropriations Limit
Under Article Xill-D 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,
42
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
revised fee schedules or other refund arrangements. For the fiscal year ended
June 30,2017, proceeds of taxes did not exceed appropriations.
h. Investments
Investments are reported in the accompanying financial statements at fair value. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. Changes
in fair value that occur during a fiscal year are recognized as investment income reported
for that fiscal year. Investment income includes interest earnings, changes in fair value,
and any gains or losses realized upon the liquidation, maturity,or sale of investments.
i. Cash and Investments
For purposes of the statement of cash flows,the City has defined cash and investments
to include cash on hand, demand deposits, investments held in various instruments,
and investments held in the California Local Agency Investment Fund (LAIF),
California Asset Management Program(CAMP)and Riverside County Treasurer's Pooled
Investment Fund.
j. Employee Compensated Absences
It is the 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. Compensated absences in
the amount of$2,583,719,are reported in the Compensation Benefits Internal Service Fund.
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 acquisition cost or net realizable value.At June 30, 2017,the cost of the
property held for resale for various housing properties in Palm Desert totaled$61,516.
I. Inventories, Prepaid Costs and Deposits
Inventory in the amount of$265,461 and $45,321, for the Desert Willow Golf Course
Enterprise Fund (Primary Govemment) and Palm Desert Recreational Facilities
Corporation (Component Unit), respectively, are stated at lower of cost or market with
cost determined using the weighted average cost method. Inventory in the amount of
$4,520 in the Other Governmental Funds are stated at cost. 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 $15,171,351 with
another governmental agency to pay for future construction of a City project.
43
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Summary of Significant Accounting Policies (Continued)
m. Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following
property tax calendar
Lien date: January 1
Levy date: July 1 to June 30
Due date: November 1 - 1st Installment
March 1 -2nd installment
Delinquent date December 10- 1st Installment
April 10-2nd Installment
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes go
into a pool and are then allocated to the cities based on complex formulas prescribed by
state statutes. The City accrues only those taxes.which are received within 60 days after
the year-end. The City is a participant in the Teeter Plan under the California Revenue
and Taxation Code. The County of Riverside has responsibility for the collection of
delinquent taxes and the City receives 100% of the levy.
n. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment.
are classified as restricted assets on the balance sheet because they are maintained
in separate trustee bank accounts and their use is limited to applicable bond covenants.
In addition,funds have been restricted for future capital improvements by City resolution.
o. Pensions
For purposes of measuring the net pension liability and deferred ❑utfiows[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 CaIPERS. For this purpose,
benefit payments(including refunds of employee contributions)are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
p. 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 pension liability
and related items(Note 8), the actuarial accrued liability for the other post-employment
benefits (Note 12), and claims payable (Note 6). Accordingly. actual results could differ
from the estimates.
44
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments
As of June 30, 2017, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities $ 265,941,038
Business-type activities 5,000,710
Component unit 213,800
Fiduciary funds 59,484,228
Total cash and investments $ 330,639,776
Cash and investments at June 30, 2017, consisted of the following:
Primary Government
Demand accounts $ (5,806,392)
Petty cash 21,900
Investments 276,726,240
Total cash and investments -Primary Government $ 270,941.748
Component Unit
Demand accounts $ 213,800
Fiduciary Funds
Demand accounts $ 998,513
Pooled with primary government 13,953,575
Investments 44,532,140
Total cash and investments- Fiduciary Funds $ 59,484,228
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 30,2017,the carrying amount of the deposits was$9,359,498,and the bank balance was
$9,772,482.The$412,984 difference represents outstanding checks,deposits in transit and other
reconciling items.
45
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
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.
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
ri savings association, a federal association or by a state-licensed branch of a foreign
bank
• Time Certificates of Deposit issued by qualified public depositories.
• Repurchase Agreements sold by authorized brokers
• Medium-term Notes issued by corporations organized and operating in the United States,
or by depository institutions operating in the United States and licensed by the
United States or by any state
• Money Market Mutual Funds that are registered with the SEC under the
Investment Act of 1940
• State of California Local Agency Investment Fund (LAIF) that is managed by the
State Treasurers 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.
46
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
The City Treasurer is authorized under state and municipal law to invest in various types
of securities that meet specified credit quality standards, based upon credit risk ratings
assigned by Standard and Poors (S&P), Fitch, or by Moody's Investor Services (Moody's).
Permissible City investments include medium-term notes that are rated "A" or higher at
time of purchase; commercial paper that is rated"A-1"or the equivalent;money market mutual
funds that are rated "AAA"; and United States Government and Federal Agency securities (the
quality of United States Treasury securities is not analyzed since they are not deemed to have
credit risk).
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required,when
applicable, by the California Government Code, the City's investment policy, or debt
agreements,and the rating by Standard and Poor s, Fitch and Moody's as of year-end for each
investment type.
Primary Government
Minimum
Total as of Legal
Investment Type June 30,2017 Rating Aaa AAA Other Unrated
California Local Agency
Investment Fund $ 18,649,690 NIA $ - S - $ - $ 18,649,690
California Asset Management
Program 28,245,956 N/A - 28.245.956 -
Riverside County Treasurer's
Pooled investment Fund 90,087,942 N/A 90,087,942 - -
U.S.Government Sponsored
Agency Securities 8,993,790 NIA 8,993.790 - -
Medium-Term Corporate Notes 38,231,092 A 1.976,296 - 36,254,796
Commercial Paper 13,993,080 A11P1 - - 13,993,080
Negotiable Certificates of Deposit 2,000,000 AA- 2,000,000
Held by Fiscal Agent'
Money Market Deposit Account 74,710,901 NIA 74,710,901
California Local Agency
Investment Fund 1,813,789 N/A - - - 1.813,789
Total $ 276,726,240 $101,058,028 5 28.245.956 $ 52,247,876 $ 95,174,380
47
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
The ratings for the"Other"category above are as follows:
Investment Type Aa A P-1 Total
Medium-Term Corporate Notes $ 31.254.491 $ 5.000,305 $ - $ 36.254,796
Commercial Paper - - 13.993,080 13.993.080
Negotiable Certificates of Deposit 2.000,000 - - 2.000.000
Total $ 33.254.491 $ 5.000.305 S 13.993.080 $ 52.247.876
Fiduciary Funds
Minimum
Total as of Legal
Investment Type June 30. 2017 Rating Aaa AAA Unrated
California Local Agency
Investment Fund 5 693 N/A $ - $ - $ 693
California Asset
Management Program 11,261.777 NIA - 11,261,777 -
Ri'erside County Treasurers
Pooled Investment Fund 11,413,711 N/A 11,413.711 - -
Imestment in City Bonds-
Successor Agency RDA 1,398.000 N/A - - 1,398.000
Held by Fiscal Agent:
Money Market Deposit Accounts
Successor Agency RDA 15,003,804 NIA - - 15,003,804
Money Market Deposit Accounts
Assessment District 2.927,042 NIA - - 2,927,042
California Local Agency
Investment Fund-
Assessment District 2.527.113 N/A - - 2527113
Total S 44.532.140 $ 11.413.711 $ 11,261.777 $ 21.856.652
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 counterpalty 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, 2017, none of the City's deposits or investments were exposed to custodial
credit risk.
48
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
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, 2017, in
accordance with GASB Statement No. 40, if the City has invested more than 10°70 of its total
investments in any one issuer then they are exposed to concentration of credit risk.The City
is not invested in any one issuer that is more than 10%of its total investments.
The City's Investment policy imposes the following restrictions on the maximum percentage it can
invest in a single type of investment.
Portfolio Single Issuer
Issuer Maximum Maximum
United States Treasury Bills, Notes, Bonds 100% N/A
United States Government-Sponsored Agency
Securities 100% 30%
Bankers Acceptances 40% 30%
Commercial Paper 25% 10%
Negotiable Certificates of Deposit 30% N/A
Time Certificates of Deposit 15°/4 N/A
Repurchase Agreements 20% N/A
Medium-Term Corporate Notes 30% 5%
Money Market Mutual Funds 20% N/A
Local Agency Investment Fund (LAIF) $50M/Acct N/A
Structured Notes (STRIPS) 20% N/A
Local Government Investment Pools 75% N/A
N/A-Not Applicable
The City's policy is more conservative than state law, which has no issuer concentration limits
on federal agency debt.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The City's investment policy states
that the City shall not invest in securities with maturities exceeding five years 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.
49
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
As of June 30, 2017,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 $ 18,649.690 $ - $ - S - S 18,649,690
California Asset
Management Program 28.245.956 - - - 28,245.956
Riverside County Treasurer's
Pooled Investment Fund 90.087,942 - - - 90.087.942
U.S.Government Sponsored
Agency Securities 8.993.790 - - 8.993.790
Medium-Term Corporate Notes 14,250.298 16.494.906 7,485.888 - 38.231,092
Commercial Paper 13,993,080 - - - 13.993.080
Negotiable Certificates of Deposit 2.000.000 - - - 2.000.000
Held by Fiscal Agent:
Money Market Deposit Accounts 74,710.901 - - - 74,710,901
California Local Agency
Investment Fund 1.813.789 •
1.813.789
Total Investments S 243.751.656 $ 25.488.696 S 7.485.888 S - $ 276.726.240
Fiduciary Funds
Less Than 6 months- 1 year- Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Local Agency
Investment Fund $ 693 $ - $ - 5 - $ 693
California Asset
Management Program 11.261.777 - - - 11.261.777
Riverside County Treasurer's
Pooled Investment Fund 11.413,711 - - - 11.413,711
Investment in City Bonds-
Successory Agency RDA 108,000 - 107.000 1.183,000 1.398.000
Held by Fiscal Agent:
Money Market Deposit Accounts-
Successory Agency RDA 15,003.804 - - - 15.003.804
Money Market Deposit Accounts-
Assessment District 2.927.042 - - - 2.927,042
LAIF-Assessment District 2.527.113 - - 2.527.1 13
Total Investments 5 43.242.140 S - $ 107.000 S 1.183.000 5 44.532.140
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by Calftomia Government Code Section 16429 under the oversight of the Treasurer of
the State of California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro-rata share of the fair
value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis.
50
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
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.
51
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair
value measurement. Unobservable inputs reflect the City's own assumptions
about the inputs market participants would use in pricing the asset
(including assumptions about risk). Unobservable inputs are developed based on
the best information available in the circumstances and may include the City's own
data.
The 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 observability
of the inputs to its fair value measurement and does not necessarily correspond to City
managements 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.
Fora 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 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.
52
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments(Continued)
Primary Government
Quoted Observable Unobservable
Prices Inputs Inputs
Investment Type Level 1 Level 2 Leal 3 Total
U.S.Government Sponsored Agency Securities $ - $ 8,993,790 S - $ 8.993.790
Medium-Term Corporate Notes - 38,231,092 - 38.231.092
Commercial Paper - 13.993,080 - 13.993,080
Negotiable Certificates of Deposit - 2,000,000 - 2.000.000
Total Leveled Investments $ - 5 63.217,962 $ - 63.217.962
California Local Agency Investment Fund' 18,649.690
California Asset Management Program* 28,245.956
Riverside County Treasurers
Pooled Investment Fund' 90,087.942
Held by Fiscal Agent:
Money Market Deposit Accounts' 74,710.901
California Local Agency Investment Fund' 1,813,789
Total Investment Portfolio $ 276,726.240
Fiduciary Funds
Quoted Observable Unobservable
Prices Inputs Inputs
Investment Type Level 1 Level 2 Level 3 Total
Investment in City Bonds-
Successor Agency RDA $ - $ - $ 1,398,000 S 1.398.000
Total Leveled Investments $ - $ - $ 1.398.000 5 1.398.000
California Local Agency Investment Fund' 693
California Asset Management Program* 11,261.777
Riverside County Treasurer's
Pooled Investment Fund' 11,413,711
Held by Fiscal Agent:
Money Market Deposit Accounts*-
Successor Agency RDA 15,003.804
Money Market Deposit Accounts*-
Assessment District 2,927.042
LAIF*-Assessment District 2,527.113
Total Investment Portfolio $ 44,532.140
Not subject to fair value measurements
53
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
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°/0. 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. 2017, the receivable balance was
$1,410,000.
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. 2017, the total
receivable from the Highlands Deferral Loan Program was$39,806.
Pursuant to Health and Safety Code 34175(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$6,584,346 is 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°/0 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.
The Housing Asset Fund has $2,463 in home improvement loans and an additional notes
receivable of$1,200. Payments of interest and principal are due monthly on these loans.
The Community Development Block Grant Special Revenue Fund has$14,870 in a home
improvement loan.
On August 28.2008 the City Council approved through resolution the Energy Independence
Program (EIP).which is supported by Assembly Bill ABS11. The EIP program allowed the City
to create the funding mechanism to assist the residents and businesses entering into a loan
agreement with the City and providing the money for the borrowers to acquire and install
energy efficient improvements. Assembly Bill AB811 allows the City to lien the properties
through annual property tax assessments for a period not to exceed 20 years. To date,
279 residents and business owners entered into loan agreements with the City and have
completed their improvements through the EIP program, as of June 30, 2017, 91 loans have
been repaid.The loans are payable in Iwo annual installments for a period of 5 years to 20 years
at an interest rate of 7%annually. On June 30,2017.the outstanding loans receivable through
the EIP Program was$3,831,250.
54
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
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 Proasions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help Housing $ 429,000 7.25% 30 years Deed of Trust Loan balance and interest
Program or 2024 dueupon maturity, unpaid
balance of loan or interest will
bear an interest rate of 12%.
Home improvement $ 345,251 NIA NIA Deed of Trust Loan is payaoie upon cnange or
Loans 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 $ 107,790 3.00% 30 years Deed of Trust Loan balance and interest will be
Mobilehome 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 $ 2,440,280 3.00% 30-45 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 $ 5,652.409 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% 30-45 Deed of Trust Loan is payable upon change or
Rehabilitation. Resale years Assignment of transfer of title, refinancing or
from date Rent upon the death of the borrower.
of loan Restrictive covenants are place
against property to maintain
affordability fro up to 45 years in
exchange for favorable loan
terms.
All properties acquired from the former Redevelopment Agency after June 2009 w it have a 45 year restrictive covenant.
55
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 4: Interfund Receivables, Payable and Transfers
Due To/From Other Funds
The composition of interfund balances as of June 30. 2017,was as follows:
Due To Due From Amount
General Fund Other Governmental Funds $ 2,138,000
Housing Asset Fund General Fund 1,847,200
Other Governmental Funds 2,683,800
Other Governmental Funds Desert Willow Golf Course 500.000
$ 7.169,000
The General Fund advanced $2,138,000 to the Energy Independence Special Revenue
Fund to payoff the bonds used to fund energy efficiency.
The Housing Asset Fund amounts are related to the advances due from the Successor
Agency(former Redevelopment Agency) per AB 1484.
The Golf Capital Projects Fund 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 $ 285,000
Desert Willow Golf Course 964,957
S 1.249,957
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.
56
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 4: Interfund Receivables, Payable and Transfers (Continued)
Interfund Transfers
The composition of interfund transfers as of June 30, 2017,was as follows:
Transfers In
Housing
Prop A Fire Tax Authority Other
Special Special Governmental Internal
Transfers Out General Fund Revenue Fund Revenue Fund Funds Service Fund Totals
General Fund $ - $ 3,209,863 $ - $ 1.180.319 $ 3,111.540 $ 7,501,722
Housing Authority
Special Revenue
Fund - - 2,884,402 651,827 - 3.536,229
Other
Governmental
Funds 1,172,852 - - 7,625 - 1,180,477
Office Complex
Parkview Enterprise Fund
Enterprise Fund 300,000 - - - 300,000
Totals $ 1,472.852 $ 3.209.863 $ 2.884,402 5 1.839.771 $ 3,111,540 $ 12,518,428
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. and
4. Transfer to provide resources to pay for compensated absences.
57
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30,2017
Note 5: Capital Assets
A summary of changes in capital assets at June 30, 2017,was as follows:
Primary Government—Governmental Activities
Balance at Balance at
July 1,2016 Transfers Pdditions Deletions June 30,2017
Capital assets,not being
depreciated-
Land $ 79,634.202 $ - $ 123,330 $ (305.000) $ 79,452,532
Right-of-way 121,048,118 - 30,573 - 121,078,691
Construction-in-progress 2,295,384 (117,106) 136,621 (429,110) 1,885,789
Internal Service Fund-
Construction-in-progress 536,607 (421,272) 15.333 - 130,668
Total capital assets,not
being depreciated 203.514.311 (538,378) 305,857 (734.110) 202.547.680
Capital assets,
being depreciated:
Buildings 144,174,975 - - - 144.174,975
Improvements other
than buildings 59,794,007 5,444 384,871 (43,913) 60,140,409
Machinery and equipment 10,312,554 - 225,554 (59,268) 16,478,840
Infrastructure 240,401,750 111,662 1,287,276 (75.000) 241,725,688
Equipment-Internal
service fund 5,333,473 421,272 487,590 (24,878) 6,217,457
Total capital assets,
being depreciated 460,016,759 538,378 2,385.291 (203,059) 462.737.369
Less accumulated
depreciation for:
Buildings (57,063,138) - (3,504,978) - (60,568,116)
Improvements other
than buildings (35,247,229) - (2,846,861) 33,550 (38.060,540)
Machinery and equipment (9.310,004) - (417,168) 59,268 (9.667,904)
Infrastructure (98.325.845) - (5,421,845) 32,500 (103,715,190)
Equipment-Internal
service fund (3,940,134) (320,873) 24,878 (4,236,129)
Total accumulated (203,886,350) - (12,511,725) 150,196 (216,247,879)
depredation
Capital assets,being
depreciated,net 256,130,409 538,378 (10,126,434) (52.863) 246,489,490
Capital assets,net-
Gmemmental Activities $ 459,644,720 $ - $ (9,820,577) $ (786,973) $ 449,037,170
58
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 5: Capital Assets (Continued)
A summary of changes in capital assets at June 30, 2017,was as follows:
Primary Government— Business-Type Activities
Balance at Balance at
July 1,2016 Additions Deletions June 30,2017
Capital assets,not being depreciated:
Land $ 52,736,087 $ 568,878 $ - $ 53,304,965
Total capital assets, not being depreciated 52,736,087 568,878 53,304,965
Capital assets,being depreciated:
Buildings and improvements 27,305,140 34,872 - 27,340,012
Machinery and equipment 6,586,412 43.976 - 6,630,388
Total capital assets,being depreciated 33,891,552 78.848 - 33,970,400
Less accumulated depreciation for:
Buildings and improvements (10,040,393) (899,236) - (10,939,629)
Machinery and equipment (5,454,899) (551,184) - (6,006,083)
Total accumulated depreciation (15,495.292) (1.450,420) - (16,945,712)
Total capital assets being depreciated.net 18,396,260 (1,371,572) - 17,024,688
Capital assets,net-Business-Type Activities $ 71,132,347 $ (802,694) $ - $ 70,329,653
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government $ 2,112,708
Housing and redevelopment 1,705,696
Public safety 107,936
Public works 5,962,212
Parks, recreation and culture 2,302,300
Depreciation expenses for internal service funds is charged to
various functions based on usage of capital assets 320,873
Total depreciation expense- governmental activities $ 12,511,725
Business-Type Activities
Parkview Office complex $ 379,768
Desert Willow Golf Course 1,070,652
Total depreciation expense- business-type activities $ 1,450,420
59
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 6: Long-Term Liabilities
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2017.
Primary Government---Governmental Activities
Balance Balance Due Within
July 1.2016 Additions Reductions June 30.2017 One Year
Special assessment debt with
government comn tment S 1.451.000 S - S (41,000) S 1,410.000 S 42.000
Limited obligation
improvement bonds 1.594,000 - (196,000) 1.398.000 108,000
Claims and judgments
payable 324.332 503.647 (429,296) 398.683
Compensated absences
payable 2,413.665 1.587,411 (1,417.357) 2,583,719 300.000
Total 5 5.782.997 5 2.091.058 $ (2.083.653) $ 5,790.402 S 450,000
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.
Primary Government—Business-type Activities
Balance Balance Due Within
July 1, 2016 Additions Reductions June 30.2017 One Year
Capital leases S 929.860 S - S (429.979) S 499.881 S 225.706
Special Assessment Debt with Government Commitment
Highlands Undergrounding Assessment District No. 04-01. Limited Obligation Improvement
Bonds.Series 2006
On August 8, 2006,the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and
pay the cost of issuance.The debt service on the bonds is to be paid by assessments secured
on the property tax rolls of those properties benefiting from the improvements. In the event
that assessment collections are insufficient to pay the debt service, the City has a potential
obligation to provide additional funds to pay the debt service, therefore these bonds are
reported as special assessment debt with government commitment. Bond maturities begin
September 2,2007,and continue annually through 2036.The interest rates of the bonds range
from 3.85% to 5.15°/0. The City of Palm Desert is the only bondholder on record of the bonds
and the City does not own the constructed assets.
60
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 6: Long-Term Liabilities (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
2018 $ 42,000 $ 70,991 $ 112,991
2019 44,000 68,895 112,895
2020 47,000 66,653 113,653
2021 49,000 64,265 113,265
2022 52,000 61,727 113,727
2023-2027 300,000 265,350 565,350
2028-2032 384,000 178,190 562,190
2033-2037 492,000 65,920 557,920
Total $ 1,410,000 $ 841,991 5 2,251,991
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
2018 $ 64,000 $ 23,730 $ 87,730
2019 63,000 21,825 84,825
2020 64,000 19,920 83,920
2021 58,000 18,090 76,090
2022 59,000 16,335 75,335
2023-2027 314,000 53,700 367,700
2028-2030 201,000 9,105 210,105
Total $ 823,000 $ 162,705 $ 985,705
61
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 6: Long-Term Liabilities (Continued)
Limited Obligation Improvement Bonds Series 2009E(Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bands
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 2009E (Taxable) bonds consist of $1.136.fl0D 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 2009E(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 44.000 $ 16.590 $ 60.590
2019 44,000 15.270 59,270
2020 45,000 13.935 58,935
2021 43,000 12,615 55,615
2022 45,000 11,295 56,295
2023-2027 223.000 35,865 256,865
2028-2030 131.000 6,015 137,015
Total $ 575.000 $ 111.585 $ 686.585
Claims and Judgments Payable
Estimates for all workers' compensation and general liabilities up to the self-insured levels
have been recorded as long-term liabilities. At June 30, 2017, total estimated workers'
compensation and general liability claims payable, including a provision for incurred but not
reported claims. were $151,201 and $247.482, respectively,for a total claims and judgments
payable of$398,683.
Changes in claims liabilities during the past two years are as follows:
June 30, 2016 June 30, 2017
Claims payable- Beginning of year $ 299,463 $ 324,332
Incurred claims (including IBNR) and
changes in estimates 194,111 503,647
Claims payments (169,242) (429,296)
Claims payable- End of year $ 324,332 $ 398,683
62
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 6: Long-Term Liabilities (Continued)
Business-type Activities—Capital Leases
Obligations under capital leases are as follows:
De Lage Lando Public Finance LLC - The present value of the
minimum lease payment on the Club Car cart fleet equipment was
capitalized at $976,366 using an interest rate of 2.99%. The lease
term is 48 months with payments schedule in 24 periods during the
months of February through July of each year of the lease.
Payments are $33,671. There are no payments scheduled from
August to January of each year. Interest accrues each month. $ 463,912
GPSI Leasing, LLC - The present value of the minimum lease
payment on the GPSI Visage Golf Cart GPS System was
capitalized at $303,530 using an interest rate of 16.66%. On
December 27, 2013 the GPSI lease was amended to extend the
agreement for an additional 31 months and lower the payment to
$7,044. The amended lease is payable in 48 monthly installments
of$7,044 beginning January 1, 2014. 35,969
Present value of net minimum lease payments 499,881
Less: current portion (225,706)
$ 274,175
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 30,2017:
Minimum
Year Ending Lease
June 30, Payments
2018 244,289
2019 277,271
521,560
Less: amounts representing interest (21,679)
Present value of net minimum lease payments $ 499,881
The assets acquired through capital lease are as follows:
Machinery and equipment $ 3,026,023
Less: accumulated depreciation (2,753.380)
$ 272,643
63
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: 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 1RC Section 457, in January 1997, the City established a trust in
which elf 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$14,005.531 held by NRS and ICMA of the 457 Plan are not reflected
in the City's financial statements.
Note 8: 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 muftiple-employer defined benefit pension plans administered by
the California Public Employees' Retirement System (CaIPERS), which acts as a
common investment and administrative agent for its participating member employers.
Benefit provisions under the Plan are established by State statute and City resolution.
CaIPERS issues publicly available reports that include a full description of the pension plan
regarding benefit provisions, assumptions and membership information that can be found
on the CaIPERS website.
Benefits Provided
CaIPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full
time employment. Members with five years of total service are eligible to retire at age 50
with statutorily reduced benefits. All members are eligible for non-duty disability benefits
after 10 years of service. The death benefit is one of the following: the Basic Death
Benefit,the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.The cost
of living adjustments for the plan are applied as specified by the Public Employees'
Retirement Law.
The Plan's provisions and benefits in effect at June 30,2017,are summarized as follows:
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 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 33.660% 33.660%
64
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 8: Pension Plan (Continued)
Employees Covered
At June 30,2017,the following employees were covered by the benefit terms for all Plans:
Inactive employees or beneficiaries currently receiving benefits 143
Inactive employees entitled to but not yet receiving benefits 77
Active employees 117
Total 337
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the
employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate.
Funding contributions for both Plans are determined annually on an actuarial basis as of
June 30 by CaIPERS. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, with
an additional amount to finance any unfunded accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate
of employees.
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, 2016, using an annual actuarial valuation as of June 30, 2015 rolled forward to
June 30, 201E using standard update procedures. A summary of principal assumptions
and methods used to determine the net pension liability is shown below.
65
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 8: Pension Plan (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30. 2015 actuarial valuations were determined using
the following actuarial assumptions:
Valuation Date June 30. 2015
Measurement Date June 30, 2016
Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.65%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase Varies by Entry Age and Service
Investment Rate of Return 7.5% Net of Pension Plan Investment and
Administration Expenses: includes Inflation
Mortality Rate Table(1) Derived using CaIPERS' Membership Data for all
funds
(1)The probablities of mortality are derived using CaIPERS' membership data for all funds.
The mortality table used was developed based on CaIPERS' specific data. The table
includes 20 years of mortality improvements using Society of Actuaries Scale BB. For
more details on this table, please refer to the 2014 Experience Study Report.
All other actuarial assumptions used in the June 30, 2015 valuation were based on the
results of an actuarial experience study for the period from 1997 to 2011,including updates
to salary increase, mortality and retirement rates. The Experience Study report can be
obtained at the CaIPERS website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.65%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 7.65°/0 discount rate is appropriate and the use of the municipal bond rate
calculation is not deemed necessary. The long term expected discount rate of 7.65% 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 CalPERS 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.
66
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 8: 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 1,2015.
New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10(1) Years 11+ (2)
Global Equity 51.00% 5.25% 5.71%
Global Fixed Income 20.00% 0.99% 2.4313/0
Inflation Sensitive 6.00% 0.45% 3.36%
Private Equity 10.00% 6.83% 6.95%
Real Estate 10.00% 4.50% 5.13%
Infrastructure and Forestland 2.00% 4.50% 5.09%
Liquidity 1.00% -0.55% -1.05%
Total 100.00%
(1) An expected inflation of 2.5% used for this period
(2) An expected inflation of 3.0% used for this period
67
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE30, 2017
Note 8: Pension Plan (Continued)
c. Changes in the Net Pension Liability
The changes in the net pension liability for the year ended June 30. 2017, with a
measurement date of June 30. 2016, for the Miscellaneous Plan are as follows:
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability(Asset)
Balance at June 30, 2015 (Valuation Date) $ 114,481,899 $ 77.550.274 $ 36,931,625
Changes in the Year:
Service Cost 2.076.964 - 2.076,964
Interest on the Total Pension Liability 8.327.823 - 8,327,823
Difference between Expected and Actual Experience (4.259,317) - (4.259,317)
Changes in Assumptions - - -
Contributions -Employer - 4,257,322 (4,257,322)
Contributions -Employee - 870.981 (870,981)
Net Investment Income - 448.184 (448.184)
Benefit Payments including Refunds of Employee
Contributions (4.801.252) (4,801.252) -
Administrative expense - (47.263) 47.263
Net Changes 1,344,218 727,972 616,246
Balance atJune 30, 2016 (Measurement Date) $ 115,826,117 $ 78,278,246 $ 37,547,871
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 65%
Net Pension Liability $ 53,608,096
Current Discount Rate 7.65%
Net Pension Liability 37,547,871
1% Increase 8.65%
Net Pension Liability 24.302,706
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the
separately issued CaIPERS financial reports.
68
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 8: Pension Plan (Continued)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2017,the City recognized pension expense of$1,499,777.
At June 30,2017, the City reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 4,818,804 $ -
Difference between actual and e>pected e>perience - (3,777,190)
Change in Assumptions - (784,256)
Net difference between projected and actual earnings on
pension plan investments 4,278,526 -
Total $ 9,097,330 $ (4,561,446)
$4,818,804 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, 2018. Other amounts reported as deferred inflows of resources
related to pensions will be recognized as pension expense as follows
Year Ending
June 30 Amount
2018 $ (2,140,718)
2019 (1,023,321)
2020 1,782,641
2021 1,098,478
2022 -
Thereafter -
e. Payable to the Pension Plan
At June 30,2017,the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2017.
Note 9: 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 30,2017,were as follows:
69
III
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 9: Fund Balances (Continued)
Capital Projects
Special Revenue Funds Fund
Other
Housing Asset Housing Capital Governmental
General Fund MeasureA Prop A Fin!Tax Fund Authority Properties Funds Total
No ns pe nda blot
Advances S 7471.800 S - 5 5 S - S - S - 5 7471.800
Loans and notes receivable 1449.806 • . - - 1.449.808
Prepaid oasis 146.373 - - - - • 1 276 147 649
Total Nonspendable 9,067,979 - - - - - 1.276 9069-255
Restricted for;
Capital projects
Assessment districts improvements - - - 2.003 904 2.003.904
Capital bond projedo - - 5.520 957 - 69.136935 - 74.657.292
Total capital projects • - - 5520.957 - 69.136 335 2.003.904 76.051.196
Debt service - - - - - 89.727 89,727
Low income housing
Projects and programs - - - 42 000.525 - - 2.797.065 44.797.590
Apartments - - - - 8.360.174 - $.360.174
Total low income housing - - • _ 42.000525 8.380.174 - 2.797.065 53.157 764
Public faolif es
Park facilities - • - - - - 1.446 171 1 448.171
City facilities • - - - - • 1.482.801 1.482.601
Childcare facilities - - - 1.273.375 1.273.375
Public facilities • - - - - 3298 3.298
Total public facilities • - - - - • 4.2071345 4.207.645
-
Public safety:
Fire feolilre5 - - - - - - 1073.067 1.073.087
Fine operation - 2 302 300 • -
- - 2,302.300
Police programs d equipment - - - 7475 7475
Total public safety - - 2,302.300 - - - 1080562 3 382.862
Special programs: --
Community protects - - - 24.332 24.332
Street resurfacing • - - - - • 200,090 200000
Recycling projects - - - - - • 2532955 2532955
Special dislnd advertising - -
• 51.r71 51.171
Air quality projects - - - - - - 59511 59,511
Landscaping and lighting - - - - - - 2.941.573 2.941.573
Art construChon S improvements . - - - 1.448 255 1.448.255
Total spacial programs - - - - - - 7.257.797 7,257.797
Street related purposes - -
Construdion&improvements - 16-812679 • 1.354.5.43 20.167.222
Street resurfacing • 2.732.566 - - - - 1000.000 3.732.588
Drainage projects • - • - - • 1.997.999 1.997.999
Traffic signals projects - - - - - 3894674 389.674
Total street related purposes • 21.545.267 - - - - 4.742.216 26.287.483
Total Restricted - 21.545.257 2,302.300 47.521.482 8,760,174 69138335 22178916 171.044,474
Committed to:
Aquatic Center - - - - - - 2.133.260 2.133 260
Capital asset reptacement - - 11 B.15 4c3 - - 11.875.488
Energy loan program - - - - - - 2 762.307 2.762.307
Total Committed - - • - 11.675.4138 - 4,895,587 16,771,055
Assigned to:
Capital projects.
City capital outlay projects 10.059 - - - - _ • 8.783.891 8.793950
Property acquisition - - - - - - 420.387 420.387
Community contingency 444.000 - - - - - - 444.000
Public facilities.
City facilities 16000 • - - - 15.703 3-434.193 3-485.896
Panes facilities 541340 • - - - - 3,896.337 3.950.977
Publics facilities - - - - - - 869.632 869.632
Golf facilities - - - _ - - - 2.907.142 2.907.142
Total public faolities 70.640 - • - • 15.703 - 11.107.304 11.193.647
Special programs:
Library - - - - - - 667255 667.255
Professional services 131.358 - - - _ - _ - 131 358
Total special programs 131.358 • - • - - 667.255 798513
Street related purposes
Cosntruction and improvements - • - - - - 119926 119.925
Street maintenance 2750 - - 2 760
Drainage projects . - - - - - 2.033.528 2,033.526
TraniC signals projects - - - - - - 102343 102 343
Total slyest related purposes 2.760 • • _ - 2.255.797 2 258 557
Total Assigned 558,817 . - - - 15.703 21,234,634 23,909,154
Unassigned 74.259-748 - • - - 74,259746
Totals S 83.986.544 S 2t.545.267 S 2,302.300 $ 47.521.482 5 20.235,662 S 69,152.038 $ 50.310.393 S 295,053,686
70
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 9: Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable-This classification includes amounts that cannot be spent because they are
either(a)not in spendable form or(b)legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific
purposes stipulated by constitution,external resource providers or through enabling legislation.
Committed-This classification includes amounts that can be used only for the specific purposes
determined by a formal action of the City Council. The City considers the adoption of a
resolution to institute a formal action of City Council for the purpose of establishing, modifying or
rescinding committed fund balances.
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 has not yet been granted to persons or bodies
other than the City Council.
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 10: 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 117 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.
71
do
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 10: Risk Management (Continued)
b. 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 Liability Program
In the liability program, claims are pooled separately between police and general
government exposures.(1)The payroll of each member is evaluated relative to the payroll of
other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the formula.
(2) The first layer of losses includes incurred costs up to $30,000 for each occurrence
and is evaluated as a percentage of the pool's total incurred costs within the first layer.
(3)The second layer of losses includes incurred costs from$30,000to$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.
For 2016-17,the Authority's pooled retention is$2 million per occurrence,with reinsurance
to$20 million,and excess insurance to$50 million. The Authority's reinsurance contracts
are subject to the following additional pooled retentions: (a) $2.5 million annual
aggregate deductible in the$3 million in excess of$2 million layer. and (b) $3 million
annual aggregate deductible in the $5 million in excess of$10 million layer. There is a
third annual aggregate deductible in the amount of$2.5 million in the$5 million in excess
of$5 million layer, however it is fully covered under a separate policy and therefore not
retained by the Authority.
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$30 million per occurrence.
72
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 10: Risk Management(Continued)
Workers' Compensation
The City of Palm Desert also participates in the workers'compensation pool administered
by the Authority. In the workers' compensation program claims are pooled separately
between public safety (police and fire) and general government exposures. (1) The
payroll of each member is evaluated relative to the payroll of other members. A variable
credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses
includes incurred costs up to $50,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the first layer. (3) The second layer
of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is
evaluated as a percentage of the pool's total incurred costs within the second layer.
(4) Incurred costs 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 2016-17,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.
c. Purchased Insurance
Property insurance
The City of Palm Desert participates in the all-risk property protection program of the
Authority.This insurance protection is underwritten by several insurance companies. The
City of Palm 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$232,916,174.
There is a $5,000 deductible per occurrence except for non-emergency vehicle
insurance, which has a$2,500 deductible.
Crime Insurance
The City of Palm Desert purchases crime insurance coverage in the amount of
$10,000,000 with a $2,500 deductible. The fidelity coverage is provided through the
Authority.
Special Event Tenant User Liability Insurance
The City or Palm Desert further protects against liability damages by requiring tenant
users of certain property to purchase low-cost tenant user liability insurance for certain
activities on agency property. The insurance premium is paid by the tenant user and is
paid to the City of Palm Desert according to a schedule. The City of Palm Desert then
pays for the insurance. The insurance is facilitated by the Authority.
73
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 10: Risk Management(Continued)
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
2016-17.
Note 11: Unearned Revenues and Deferred Inflows of Resources
Unearned Revenues
Major Governmental Funds
General Fund has received $2,198 in advance rent payments and$19,172 in building permits.
Measure A Special Revenue Fund has $15,171,351 in funds received from the Successor
Agency that are deemed unearned until expenditures are incurred related to construction of
interchange.
Housing Authority Special Revenue Fund has other amounts reported as unearned
revenues include$13,221 for prepaid rents.
Other Governmental Funds
Special Revenue Funds
$33,015 of grant funds are deemed unearned until expenditures are incurred in the
Public Safety Police Grants Fund.
$8,643 of grant funds are deemed unearned until expenditures are incurred in the
Recycling Fund.
$18,877 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Capital Projects 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, 2017.
Business-type Activities
The balance of $136,735 represents the unused portions of prepaid golf fees and value of
unredeemed gift certificates.
The balance of$12,248 represents the unearned rent for the Parkview Office.
Component Unit
The balance of$85,350 represents the unused portions of prepaid banquets.
74
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 11: Unearned Revenues and Deferred Inflows of Resources
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 (Corporation) for the use of property at the City's Golf Resort
(Desert Willow). Payment is due when the Corporation's revenues exceed its expenses.
At June 30, 2017, the Corporation owed the City rent totaling $285,000, which will be
recognized as revenue by the City when the rent is paid by the Corporation.
The State of California collects taxes and fees for the City and makes payments to the City
at various times. Due to the City's policy of recognizing revenue, the amount of $382,675
for sales tax has been reported as unavailable.
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 30,2017,$56,194
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 $48,802 on the advance from the General Fund to the
Energy Independence Special Revenue Fund, and $175,149 on investments purchased, and
$1,440,816 on advances to the Successor Agency is reported as unavailable revenue.
Other accounts receivable for reimbursement of court fees in the amount of$20,777 and
county abandoned vehicle reimbursement in the amount of$8,308 is not available at year end.
Housing Asset Fund
Uncollected interest on notes receivable of$32,798 due from the Palm Desert Development
Company has been reported as unavailable.
Interest in the amount of $883,545 on advances to the Successor Agency is reported as
unavailable revenue.
75
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 11: Unearned Revenues and Deferred Inflows of Resources (Continued)
Other Governmental Funds
Special Revenue Funds
The Community Development Block Grant Special Revenue Fund has$14,870in a home
improvement loan as unavailable.
The New Construction Tax Special Revenue Fund has $102,024 in interest on advances to
the Successor Agency is reported as unavailable.
Interest accrued on loans of$160,895 on loans receivable through the City's EIP Program
is reported as unavailable(see Note 3).
Capital Projects Funds
The Capital Projects Reserve Capital Projects Fund has$1,248,000 in interest on advances to
the Successor Agency is reported as unavailable.
The Parks and Recreation Facilities Capital Projects Fund has $743,340 in interest on
advances to the Successor Agency is reported as unavailable.
Debt Service Fund
Assessment receivables in the amount of$1,268,926 represent future assessments to be
received from property owners in Highlands Undergrounding Assessment Districts 04-1 to
pay for long-term obligations incurred in making capital improvements in the Assessment
District. Recognition of the revenue from the assessments has been deferred until it becomes
available. Once received,the monies will be used to make annual debt service payments.
Note 12: Other Post-Employment Benefits
a. Plan Description
In addition to the pension benefits described in Note 8. the City provides
other post-employment benefits (OPEB) through the California Employers' Retiree
Benefit Trust Fund (CERBT), an agent multiple-employer defined benefit healthcare
plan administered by the California Public Employees' Retirement System(CaIPERS).
All full-time or part-time employees who meet the eligibility requirements for this
program may continue their medical coverage through the CaIPERS Health Plan
and receive reimbursement from the City for a portion of the costs for the coverage.
Separate financial statements for the CERBT may be obtained by writing to CalPERS at
Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811, or by visiting the CaIPERS
website at www.calpers.ca.gov.
76
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 12: Other Post-Employment Benefits (Continued)
Employees Hired Prior to January 1,2008
Eligibility for the stipend requires retirement simultaneously from the City and CaIPERS on
or after age 50 with at least 10 consecutive years of service with the City. Eligible
employees must be covered under the CaIPERS Health Plan at the time of retirement
and elect to participate in the stipend program within 30 days of retirement.
The City's contribution towards the coverage is based on years of service as follows:
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%
Employees Hired On or After January 1,2008
Eligibility for the stipend requires retirement simultaneously from the City and CaIPERS on
or after age 50 with at least 15 consecutive years of service with the City. Eligible
employees must be covered under the CaIPERS Health Plan at the time of retirement
and elect to participate in the stipend program within 30 days of retirement. The stipend
is discontinued when the retiree reaches Medicare eligibility age. The City's
contribution towards the coverage will be applied to the lowest cost plan and is based
on age at retirement and consecutive years of service with the City as outlined in the
following table:
Consecutive Years of Service at Retirement
Age 15 16 17 18 19 20 21 22 23 24 25+
50 0% 5% 10% 15% 201/0 25% 30% 35% 40% 45% 50%
51 10% 15% 20% 25% 30% 35% 40% 45% 50% 500/0 501%0
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% 451%0 50°/0 50% 50% 50% 50% 50% 50% 50% 500/0
55+ 50% 50% 50% 50% 500/0 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 CaIPERS are eligible to
continue medical coverage through the CaIPERS Health Plan, The City is required to pay
the CaIPERS minimum employer contribution ($125 in 2016 and $128 in 2017)for these
employees.
77
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 12: Other Post-Employment Benefits (Continued)
Employees Hired On or After January 1. 2015
Employees are not eligible for either of the defined retiree health benefits plan, but are
instead enrolled in the City's ICMA Retirement Health Savings Account. Employees
have a mandatory 1% contribution to the Retirement Health Savings Plan and the City
matches the 1%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%.
b. Funding Policy
The contribution requirements of plan members and the City are established and may
be amended by the City, City Council, and/or the employee associations. Currently,
contributions are not required from plan members. During the fiscal year ended
June 30,2017,the City contributed $1,322,774to the plan.The City's funding policy is to
fund 100% of the annual required contribution as determined under GASB 45 through the
California Employers Retiree Benefit Trust(CERBT).As a result, the City calculated and
recorded a Net OPEB Asset, representing the difference between the Annual Required
Contribution (ARC) and actual contributions, as presented below:
Annual required contribution (ARC) $ 602,773
Interest on net OPEB obligation (asset) (587,175)
Adjustment to annual required contribution 599,555
Annual OPEB cost 615,153
Contributions made (1,322,774)
Increase in net OPEB obligation (asset) (707,621)
Net OPEB obligation (asset) at June 30, 2016 (8,724,737)
Net OPEB obligation (asset) at June 30, 2017 $ (9,432,358)
The contribution is based on the ARC of$602,773, an amount actuarially determined
in accordance with the parameters of GASB Statement No. 45. The ARC represents a
level of funding that,if paid on an ongoing basis is projected to cover the annual normal cost
and the amortization of unfunded actuarial accrued liabilities (or funding excess) over a
twenty-two year period.
78
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 12: Other Post-Employment Benefits (Continued)
c. Annual OPEB Cost and Net OPEB Obligation (Asset)
For fiscal year 2017,the City's annual OPEB cost(expense)was$615,153. Information on
the annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB
Obligation (Asset) is available for June 30, 2017 and the two previous fiscal years, are
presented below:
Actual Percentage of
Contributiion Annual OPEB Net OPEB
Fiscal Year Annual OPEB (Net of Cost Obligation
Ended Cost Adjustments) Contributed (Asset)
6/30/2015 $ 313,752 5 358,776 114% $ (8,493,635)
6/30/2016 597,269 828,371 139% (8,724,737)
6/30/2017 615,153 1,322,774 215% (9,432,358)
d. Funded Status and Funding Progress
As of June 30, 2015, the most recent actuarial valuation date, the plan was 76%funded.
The actuarial accrued liability for benefits was $14.77 million, and the actuarial value of
assets was $11.26 million, resulting in an unfunded actuarial accrued liability (UAAL) of
$3.51 million.The covered payroll (annual payroll of active employees covered by
the plan) was $10.97 million, and the ratio of the UAAL to the covered payroll was 32%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future.Examples include
assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future. The schedule of
funding progress, presented as required supplementary information following the notes to
basic financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
e. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
and include the types of benefits provided at the time of each valuation.The actuarial methods
and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets
consistent with the long-term perspective of the calculations.
79
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 12: Other Post-Employment Benefits (Continued)
in the June 30. 2015 actuarial valuation,the entry age normal actuarial cost method was
used. The actuarial assumptions included a 6.73% investment rate of return
(net of administrative expenses) and an actual healthcare cost trend rate in 2015,
decreased to 7% in 2016 and then reduced by decrements to an ultimate rate of 5% in
2020. A 3.0°/o per annum in aggregate in future salaries is also assumed in the valuation.
The City's unfunded actuarial accrued liability will be amortized as a level percentage of
projected covered payroll on a closed basis. The remaining amortization period at
June 30, 2017,was 21 years.
Note 13: Special Assessment Debt
Below is a summary of the changes in the special assessment bonds payable
Balance at Payments and Balance at Due Within
July 1,2016 Additions Reductions June 30.2017 One Year
2003 Assessment Revenue
Bonds $ 1.860.000 $ - $ (165.000) $ 1.695,000 $ 170.000
AD 98-1 Limited Obligation
Refunding Bonds 195,000 - (65.000) 130.000 65.000
CFO 2005-1 Special Tax Bonds
Series 2006A 31.130,000 - (1,045,000) 30.085,000 890,000
AD 2004-2 Limited Obligation
Improvement Bonds 23.185.000 - (610,000) 22.575,000 640.000
2008 Special Tax Refunding
Bonds 2300.000 - (1,070.000) 1.630.000 1,105.000
Total $ 59.070.000 S - S (2.955.000) S 56.115.000 S 2.870.000
4 —The City has Special Assessment Bonds Payable issued under the 1911 and 1915.
Special Improvement Acts and the 1982 Mello-Roos Community Facilities Act
(19 82 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.
80
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 13: Special Assessment Debt(Continued)
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 _
2018 $ 170,000 S 84,899 $ 254,899
2019 170,000 76,229 246,229
2020 175,000 67,344 242,344
2021 180,000 58,069 238,069
2022 100,000 50,719 150,719
2023-2027 605,000 163,519 768,519
2028-2029 295,000 15,991 310,991
Total $ 1,695,000 $ 516,770 $ 2,211,770
As of June 30, 2017,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 $ 350,000
Assessment District 01-1 1,355,000
$ 1,705,000
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.
81
a
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 13: Special Assessment Debt (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total _
2018 $ 65,000 $ 4,940 $ 69,940
2019 65,000 1,658 66,658
Total $ 130.000 $ 6.598 $ 136.598
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.
82
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 13: Special Assessment Debt(Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 890,000 $ 1,579,125 $ 2,469,125
2019 935,000 1,533,500 2,468,500
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
2023-2027 6,300,000 5,984,063 12,284,063
2028-2032 8,235,000 4,064,836 12,299,836
2033-2037 10,635,000 1,521,311 12,156,311
Total $ 30,085,000 $ 18,986,460 $ 49,071,460
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
2018 $ 640,000 $ 1,117,210 $ 1,757,210
2019 670,000 1,086,913 1,756,913
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
2023-2027 4,435,000 4,308,774 8,743,774
2028-2032 5,670,000 3,036,284 8,706,284
2033-2037 7,275,000 1,394,213 8,669,213
2038 1,685,000 42,968 1,727,968
Total $ 22,575,000 $ 14,047,580 $ 36,622,580
83
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 13: Special Assessment Debt(Continued)
2008 Special Tax Refunding Bonds
In December 2007,the City of Palm Desert Communities Facilities District No.91-1 (Indian Ridge
Public Improvements) issued $10,935,000 of Special Tax Refunding Bonds, Series 2008 to
refund and defease all the outstanding $16,260,000 principal amount of the Palm Desert
Financing Authority 1997 Revenue Bonds. These bonds were issued pursuant to the
provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Part 1, Division 2. Title 5, of the Government Code of the State of California.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 1.105,000 S 41,719 $ 1,146.719
2019 170,000 17,600 187,600
2020 175.000 10,700 185,700
2021 180.000 3,600 183,600
Total $ 1,630,000 $ 73,619 $ 1,703,619
Bond Reserve Requirements
At June 30, 2017,the fund balance reserve requirements and actual reserve balances were
as follows
Requirement Actual
Assessment District 98-1 $ 13,000 S 73.764
2003 Financing Authority Revenue Bonds 230,398 231,390
CFD 2005-1 Special Tax Bonds 2,469,129 2.529,793
Assessment District 29 1,757,210 1,785,794
2008 Special Tax Refunding Bonds 532,381 532,678
Note 14: Conduit Debt Obligations
2008 Series A-$72,445,000 Lease Revenue Bonds
In November 2008.the Palm Desert Financing Authority(Authority)issued$72,445,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction,
installation, acquisition, development and rehabilitation of certain public capital
improvements within the County, including the Palm Desert Sheriffs Station Facilities
(as described herein), community centers, a multi-service center, park improvements and
other various infrastructure improvements: b)fund capitalized interest on the 2008 Series A
Bonds related to the Palm Desert Sheriff Station Facilities through August 31. 2010 and with
respect to the Multi-Service Center Facilities (as described herein) through
December 31, 2009; c) fund a deposit into the Reserve Account as additional security for
the 2008 Series A Bonds: and d) pay certain costs associated with the issuance and
delivery of the 2008 Series A Bonds. Under the Lease, the County will pay to the Trustee
Base Rental Payments in the amount equal to the scheduled debt service of the Bonds. The
Authority will assign its right to receive the Base Rental Payments to the Trustee for the benefit
of the owners of the bonds. The debt service on the bonds is to be paid solely from lease
payments made by the County. The Authority has no obligation to make the debt service
payments in the event that the County is not able to make the required base rental payments.
These bond were refunded as of September 8, 2016.
84
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 15: Other Disclosures
The Palm Desert Recreational Facilities Corporation has a deficit of$1,124,827,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$233,617,758,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.
Note 16: Construction and Other Significant Commitments
Construction Commitments
Primary Government
Current Year Prior Year Remaining
Project Spent Spent Commitment
Parks/Recreation $ 28.460 $ - $ 73,841
Low Income Housing - - 235,535
Street Resurfacing - - 3:932,588
Street Improvements 207,657 - 100,510
Recycle Projects 15,488 - 49,513
CDBG 32,856 - 121,669
Facade Enhancement - - 75,000
Governmental Software Implementation 7,971 - 67,262
Promotional Advertising/Rebranding - - 75,766
Alessandro West Improvement Project 12,904 - 47,032
Drainage Improvements 129,716 - 180,202
El Paseo Art Exhibit 36,416 - 12,650
Emergency Services/Equipment 1 CERT 29,916 - 186,692
Joslyn Senior Center Improvements 34,937 - 207,450
Fleet Replacement- Boom Truck - - 110,170
City Owned Buildings Improvements 9,000 - 65,898
Hotel Feasiblitiy Analyses 14,535 - 35,465
559,856 - 5,577,243
Miscellaneous nonconstruction - - 24,478
$ 559.856 $ - $ 5,601.721
Fiduciary Funds
Current Year Prior Year Remaining
Project Spent Spent Commitment
Low income housing $ - $ - $ 667,624
Desert Willow capital improvements 1,854 1,854 131,714
1.854 1,854 799,338
Miscellaneous nonconstruction - -
$ 1,854 $ 1,854 $ 799,338
85
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 17: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies
The California Legislature adopted AB X 1 26 in June 2011,adding Part 1.8(commencing with
Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the
California Health and Safety Code. Part 1.8 immediately suspended the power of California
redevelopment agencies to engage in most activities, except to implement existing
contracts, meet already-incurred obligations, preserve existing assets and prepare for
impending dissolution. Pursuant to Part 1.85, all redevelopment agencies in the State
(each a"Dissolved RDA")were dissolved as of February 1, 2012, and a successor agency
("SARDA") was established for each former redevelopment agency to wind-down the
affairs of its former redevelopment agency.
Since AB X1 26, there have been several amendments and additions the provisions of
Parts 1.8 and 1.85, including among others, AB 1484 adopted in June 2012, and SB 107
adopted in September 2015. Parts 1.8 and 1.85,as amended and supplemented,are referred
to below as the"Dissolution Act."
Pursuant to the Dissolution Act, the city which formed a redevelopment agency would serve as
the SARDA unless the city elects to do otherwise. On August 25. 2011. the City Council
adopted Resolution No. 2011-76,electing for the City to serve as the SARDA.
On February 9.2012,the City Council of the City, acting as the governing body of the SARDA,
established rules and regulations for the operations of the SARDA to assume these
successor functions pursuant to Resolution No. SA-RDA001. Although the Board of
Directors of the SARDA is comprised of the same individuals as the City Council of the City,
subdivision (g)of Section 34173 of the Dissolution Act. expressly affirms that the SARDA is a
separate public entity from the City,that the two entities shall not merge,and that the liabilities
of the Dissolved RDA will not be transferred to the City nor will the assets of the Dissolved
RDA become assets of the City.
The Dissolution Act requires the establishment of an oversight board for each SARDA.Under the
Dissolution Act, certain SARDA actions must first be approved by the oversight board, and
the oversight board is also required to direct the SARDA to take certain actions in connection
with the wind down of the affairs of the Dissolved RDA.The role of a SARDA is to administer
the wind down of its Dissolved RDA which includes making payments due on enforceable
obligations, disposing of the assets(other than housing assets)and pursuant to due diligence
reviews described below. remitting the unencumbered balances of the Dissolved RDAs to
the County Auditor-Controller for distribution to the affected taxing entities.
The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to
assume the housing functions and take over the housing assets of the Dissolved RDA. If
the sponsoring community does not elect to become the Housing Successor and assume the
Dissolved RDA's housing functions, such housing functions and all related housing assets will
be transferred to the local housing authority in the jurisdiction. The City of
Palm Desert elected on February 9, 2012 to transfer the responsibility to serve as the
Housing Successor to the Palm Desert Housing Authority. As required by the Dissolution
Act, the Housing Authority, as the Housing Successor, submitted to the State Department
of Finance(''DOE") of 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.
After the date of dissolution, the housing assets, obligations, and activities of the Dissolved
RDA were transferred to the Housing Successor and are reported in the Housing Asset
86
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 17: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies (Continued)
Fund beginning in fiscal year 2011-2012. 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.
The Dissolution Act also established roles for the County Auditor-Controller(the"CAC"),the
DOF,and the California State Controller's office in the dissolution process and the satisfaction of
enforceable obligations of the Dissolved RDAs.
The CAC is charged with establishing a Redevelopment Property Tax Trust Fund
(the"RPTTF")for each 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.
The SARDA is required to prepare a recognized obligation payment schedule(the"ROPS")
approved by the oversight board setting forth the amounts due for each enforceable
obligation during each ROPS period. The ROPS is submitted to the CAC and the DOF for
consideration.The CAC will only make payments to the SARDA from the RPTTF fund based on
the ROPS amount approved by the DOF.
As part of the dissolution process,AB1484 required the SARDA to have due diligence reviews
of both the low and moderate income housing funds and all other funds completed
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. These funds were to be remitted to the CAC after the DOF completed
its review of the due diligence reviews.The SARDA paid a total amount of$40,988,399 to the
CAC based on the final determination by the DOF.
The DOF issued a Finding of Completion on May 15, 2013 in which DOF concurred that the
SARDA has made full payments of any 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 the Dissolution Act)on
the ROPS. On February 23, 2015, the Oversight Board approved Resolution OB-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,
2017, the long-term advances totaled $22,655,000 (the "Advances"). In the financial
statements $9,236,000 is reported in the General Fund and $13,419,000 is reported in
Other Governmental Funds.An offset of 20°/0 has been reported as due to other funds in the
respective funds totaling $4,531,000,which is based on principal only. See further discussion
under Note 18.
Pursuant to SB 107, adopted in September 2015, 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 30,2017 totaled $4,417,725.
87
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 17: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies (Continued)
The State Controller of the State of California was directed to review the propriety of any
transfers of assets between Dissolved RDA and other public bodies that occurred after
January 1, 2011. If the public body that received such transfers is not contractually committed
to a third party for the expenditure or encumbrance of those assets. the State Controller is
required to order the available assets to be transferred to the public body designated as
the SARDA. The State Controller completed its review on March 14, 2013 and did not
identify any unallowable transfers of assets that occurred during the audit between the
Dissolved RDA.the City and or other public agencies.
The SARDA's use and disposition of all properties held(Long Range Property Management Plan
(LRPMP"). was approved by the DOF on June 2, 2014.The LRPMP allowed the SARDA to
transfer property used for government purposes with a cost basis of$6,390,263 to the City.
Stipulated 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.
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 Dissolution Act has eliminated the low and moderate income housing fund 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 ROPS,the SARDA has included
line items designated as'Stipulation Judgment Case No.51124,"listing the amounts necessary
to fulfill its obligations under the Judgment (after taking into account the amounts already
listed for the repayment of the Housing Bonds). While the DOF originally approved such line
items, the DOE 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. 34-2014-00157698(the
''Successor Agency Lawsuit"),seeking to compel the DOE 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.
88
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures
The assets and liabilities of the Dissolved RDA were transferred to the SARDA on
February 1, 2012 as a result of the dissolution of the former Redevelopment Agency. 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, 2017, was as follows:
Advances From Advances To Amount
General Fund Successor Agency $ 9.236,000
Other Governmental Funds Successor Agency 13,419,000
Housing Asset Fund Successor Agency 9,959,462
$ 32,614,462
The advances from the General Fund and Other Governmental Funds were made to the
Dissolved RDA for capital improvements. The Dissolved RDA's Housing Asset Fund made
advances to the Dissolved RDA for the purpose of covering the SERAF payment.
The Dissolution Act specifies the actions to be taken and the method of repayment by the
SARDA to the various funds of the City for such loans. Upon application and approval by the
SARDA and approval by the oversight board, loan agreements entered into by Dissolved RDA
and the city shall be deemed to be enforceable obligations provided that the oversight board
makes a finding that the advances were for legitimate redevelopment purposes. The
accumulated interest on the remaining amount of advances will be recalculated pursuant to the
provisions of SB 107.
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, 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). 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.
89
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures(Continued)
Balance at Balance at
July 1, 2016 Additions Deletions June 30, 2017
Capital assets, not
being depreciated:
Land $ 35,501,118 $ - $ - $ 35,501,118
Total capital assets, not
being depreciated 35,501,118 - - 35,501,118
Capital assets, being
depreciated:
Buildings 1,264,879 - - 1,264,879
Total capital assets
being depreciated 1,264,879 - - 1,264,879
Less accumulated
depreciation for:
Buildings (303,483) (31,623) - (335,106)
Total accumulated
depreciation (303,483) (31,623) - (335,106)
Capital assets, being
depreciated, net 961,396 - - 929,773
Capital assets, net-
Fiduciary Activities $ 36,462,514 $ - $ - $ 36,430,891
90
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30,2017,was as follows:
Balance Additions/ Repayments/ Balance Due Within
Jury 1.2016 Accretion Reductions June 30. 2017 One Year
Project Area No.1
2002A TARRBs,$22.070.000 $ 22,070,000 S - $ (22,070,000) $ - $ -
2003 TARBS, $19,000,000 12.660.000 - (12.660.000) - -
2004A TARRBs,524.945,000 12,770,000 - (12,770,000) - -
2006 A&B TARBS,$62,320,000 37,780,000 - (37,780,000) -
2007A TARRBs, $32,600,000 7,250,000 - (3,570,000) 3,680,000 3,580,000
Project Area No.2
2002A TARRBS. $17,310,000 7,770.000 - (7.770.000) - -
2003 TARBS.$15,745,000 15,745.000 - - 15,745,000
2006 A-D TARBS.$57,518,213 54.397.962 - (54,397,962) - -
Project Area No.3
2003 TARBS.$4,745,000 3.325,000 - (3,325,000) - -
2006 A-C TABS,515.059.526 15.571,730 - (15,571,730) - -
Project Area No.4
1998 TARBs, $11,020,000 7.070.000 - (7.070.000) - -
2001 TARBS, $15,595,000 11,775.000 - (11,775,000) - -
2006A TARBS,$19,243,089 17,785.370 - (17.785.370) - -
Combined Low and Moderate - -
2002 TARBs, $12,100,000 8,455,000 - (8,455,000) - -
2007 TARB5.$86,155,000 50.155.000 - (50.155,000) - -
2017 Tax Allocation Refunding Bonds
2017 A TARBS,852.380.000 - 52.390,000 - 52.390.000 1,385.000
2017 B TARBs,$140,130.000 - 140.130.000 - 146.139,000 2,045,000
2017 H-A TARBS, 57.365.000 - 7,365,000 - 7,365.000 355.000
2017 H-B TARBS, $45,815,000 - 45.815.000 - 45,815,000 6.770.000
Subtotal 284,580,062 245,700.000 (265.155.062) 265.125,000 14,235.000
Add: unamortized bond premium 4,045,319 8,846,958 (4,184.910) 8.767.367
Less. Unamortized bond discount - (2.332.405) 56,138 (2.276.267) •
Total $ 288,625,381 $ 252,214.553 $ (269.283.834) $ 271.556.100 S 14.235.000
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, and
the 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 17)and other
funds as provided in the bond documents.
In January 2017, the Successor Agency issued four series of bonds' (i) the Tax Allocation
Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000 (the
"2017A Bonds"), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the
aggregate principal amount of $140,130,000 (the '2017B Bonds"), (iii) the Tax Allocation
Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000 (the
`2017H-A Bonds"); and(iv)the Taxable Tax Allocation Refunding Bonds, 2017 Series H-B, in
the aggregate principal amount of$45,815,000 (the"2017H-B Bonds"). As further described
below,the 2017 refunding refunded all of the outstanding tax allocation revenue bonds,except
for the Project Area No. 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
91
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
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.
All of the tax allocation revenue bonds issued before the Dissolved RDA's dissolution and listed
above were insured by either Ambac Assurance Corporation (Ambac) or MBIA Insurance
Corporation(MBIA). All of the bonds insured by Ambac were refunded in 2017. The remaining
outstanding Project Area No. 1 2007A Bonds and the Project Area No. 2 2003 Bonds are
insured by 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 US 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.
The Redevelopment Plans for the Dissolved RDAs project areas set forth certain limitations on
the maximum aggregate amount of tax increment that the Dissolved RDA could have received
with respect to each project area, or if applicable, each component area of the project area
(each,a"TI Cap"). Upon reaching the TI Cap,the Dissolved RDA would not be able to receive
any additional tax increment derived from the project area(or component area, as the case
may be)to pay outstanding debt.
Pursuant to SB 107(adopted in September 2015), Section 34189(a) of the Dissolution Act has
been amended, clarifying that the SARDA is not subject to the TI Cap for the purposes of the
payments of bonds or any other enforceable obligations(except where the contract for the
enforceable obligation specifies that the funding for such project would cease once such
limitation was realized).
2002 Series A Tax Allocation Refunding Revenue Bonds(Project Area No. 1,as amended)
On March 13, 2002,the Palm Desert Financing Authority issued$22,070,000 of Tax Allocation
Refunding Revenue Bonds(Project Area No. 1,as amended)2002 Series A.The proceeds from
the bonds were loaned to the Dissolved RDA.A portion of the proceeds of the loan was used to
prepay the prior loan,which affected the current refunding of a like portion of the prior bonds.
The remainder was used to fund various redevelopment capital projects of the Agency in
Project Area No. 1.
These bonds were refunded in January 2017 with the issuance of the 2017A Bonds.
92
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
2003 Series Tax Allocation Revenue Bonds(Protect Area No. 1)
On August 5, 2003. the Financing Authority issued $19,000,000 Tax Allocation Revenue Bonds
(Project Area No. 1,as amended)2003 Series.The proceeds of the bonds were disbursed to make
a loan to the Dissolved RDA. The proceeds from the bonds were loaned to fund various
redevelopment capital projects and to finance costs of issuance of the bonds.
These bonds were refunded in January 2017 with the issuance of the 2017A Bonds.
2004 Series A Tax Allocation Refunding Revenue Bonds(Project Area No. 1, as amended)
On June 24. 2004, the Palm Desert Financing Authority issued $24,945,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series A. The proceeds
from the bonds were loaned to the Dissolved RDA to refinance a portion of the Agency's
obligations from 1995,and to fund various redevelopment capital projects within or of benefit to
the project area.
These bonds were refunded in January 2017with the issuance of the 2017A Bonds.
Tax Allocation Revenue Bonds (Protect Area No. 1, as Amended)2006 Series A and Series
B(Taxable)
On July 6, 2006, the Palm Desert Financing Authority issued $37,780,000 of Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended) 2006 Series A and $24,540,000 of Tax
Allocation Refunding Revenue Bonds (Project Area No. 1, as Amended) 2006 Series B
(Taxable). The Palm Desert Financing Authority loaned the bond proceeds to the Dissolved
RDA. The proceeds of the Series A were loaned to assist the Agency to fund various
redevelopment capital projects within or of benefit to Project Area No. 1,as Amended,pay costs
of issuance and pay the premium on a Reserve Fund surety bond. The proceeds of the Series
B were loaned to refinance the Agency's obligations incurred under a loan agreement entered
into in 1997, pay costs of issuance and pay the premium on a Reserve Fund surety bond.The
final maturity of Series B was paid as of April 1, 2016.
The Series A bonds were refunded in January 2017 with the issuance of the 2017B Bonds.
Tax Allocation Refunding Revenue Bonds(Project 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°/o payable semiannually on
October 1 and April 1.Bond maturities began April 1,2008,and continue annually through 2018.
93
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
The future debt service requirements on the 2007 Series A Tax Allocation Refunding
Revenue Bonds(Project Area No. 1,as amended)are as follows:
Year Ending
June 30. Principal Interest Total
2018 $ 3,680,000 $ 184.000 $ 3,864,000
Total $ 3.680.000 $ 184,000 $ 3,864,000
2002 Series A Tax Allocation Refunding Revenue Bonds(Project Area No. 2)
On July 11,2002,the Palm Desert Financing Authority issued$17,310,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert
Financing Authority loaned the bond proceeds to the Dissolved RDA to prepay outstanding
indebtedness and to fund various redevelopment capital projects within or of benefit to the
project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on February 1 and August 1.
These bonds were refunded in January 2017with the issuance of the 2017A Bonds.
2003 Series Tax Allocation Revenue Bonds(Proiect Area No. 2)
On March 26,2003,the Palm Desert Financing Authority issued$15,745,000 of Tax Allocation
Revenue Bonds(Project Area No.2)2003 Series.The Palm Desert Financing Authority loaned
the bond proceeds to the Dissolved RDA to fund various redevelopment capital projects in
Project Area No. 2. Interest rates on the bonds vary from 4.5%to 5.0% per annum payable
semi-annually on February 1 and August 1, with principal maturing as follows:
$ 875,000 Serial Bonds August 1, 2023
910,000 Serial Bonds August 1, 2024
2,485,000 Term Bonds August 1, 2026
11,475,000 Term Bonds August 1. 2033
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
2018 S - $ 769,006 S 769,006
2019 - 769,006 769,006
2020 - 769,006 769,006
2021 - 769,006 769,006
2022 - 769,006 769,006
2023-2027 4,270,000 3,494,422 7,764,422
2028-2032 7,775,000 1,935,625 9,710,625
2033-2034 3.700,000 187.250 3,887,250
Total $ 15,745,000 S 9,462,328 $ 25,207,328
94
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A,Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C
and Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D
On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 2
$41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A, $1,567,118 Tax
Allocation Revenue Capital Appreciation Bonds 2006 Series B, $7,775,000 Tax Allocation
Revenue Bonds 2006 Series C and$16,936,095 Subordinate Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series D. The Palm Desert Financing Authority loaned the bond
proceeds to the Dissolved RDA. The proceeds of the Series A, B and C Bonds were loaned
to refinance the Agency's obligations incurred under a loan agreement entered into in 1995,
fund various redevelopment capital projects within or of benefit to its Project Area No. 2
Reserve Fund surety and pay costs of issuance of the bonds. The proceeds of the Series D
Bonds were loaned to fund various redevelopment capital projects within or of benefit to the
Project Area,fund a debt service reserve fund and pay the premium on a Reserve Fund surety
bond.
The final maturity of the Series B Bonds was paid as of August 1,2010. The Series C Bonds
were redeemed in full on August 1, 2010.
The outstanding Series A Bonds and Series D Bonds were refunded in January 2017 the
issuance of the 2017B Bonds.
2003 Series Tax Allocation Revenue Bonds(Project Area No.3)
On August 5,2003,the Financing Authority issued$4,745,000 of Tax Allocation Revenue Bonds
(Project Area No. 3)2003 Series.The proceeds of the bonds were disbursed to make a loan to
the Dissolved RDA. The proceeds of the bond were loaned to fund various redevelopment
capital projects within or of benefit to the project area and to finance costs of issuance of the
bonds.
These bonds were refunded in January 2017 with the issuance of the 2017B Bonds.
95
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
Project Area No.3 Tax Allocation Revenue Bonds 2006 Series A,Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series C
On July 25. 2006, the Palm Desert Financing Authority issued its Project Area No. 3
$11,915,000 Tax Allocation Revenue Bonds 2006 Series A, $383,660 Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B and $2,760.866 Subordinate Tax
Allocation Revenue Capital Appreciation Bonds 2006 Series C.The Palm Desert Financing
Authority loaned the bond proceeds to the Dissolved RDA.The proceeds of the Series A and
B Bonds were loaned to fund various redevelopment capital projects within or of benefit to its
Project Area No. 3, pay the premium on a Reserve Fund surety bond and pay the costs of
issuance of the bonds. The proceeds of the Series C Bonds were loaned to fund various
redevelopment capital projects within or of benefit to the Project Area, fund a debt service
reserve fund and pay the costs of issuance of the bonds.
These bonds were refunded in January 2017 with the issuance of the 2017E Bonds.
1998 Series Tax Allocation Revenue Bonds(Project Area No.4)
On March 1. 1998,the Palm Desert Financing Authority issued$11,020,000 of Tax Allocation
Revenue Bonds(Project Area No.4) 1998 Series. The proceeds from the bonds were loaned to
the Dissolved RDA to fund various redevelopment capital projects in Project Area No. 4. In
July 2006, $1,785,000 of the outstanding balance was advance refunded by the issuance
of Tax Allocation Refunding Revenue Bonds (Project Area No.4)2006 Series A.
These bonds were refunded in January 2017 with the issuance of the 2017A Bonds.
2001 Series Tax Allocation Revenue Bonds(Project Area No.4.)
On November 28. 2001, the Palm Desert Financing Authority issued $15,695,000 of
Tax Allocation Revenue Bonds(Project Area No.4)2001 Series.The proceeds from the bonds
were loaned to the Dissolved RDA to fund various redevelopment capital projects in Project
Area No.4.
These bonds were refunded in January 2017 with the issuance of the 2017B Bonds.
Tax Allocation Refunding Revenue Bonds(Project Area No.4)2006 Series A and Tax Allocation
Revenue Capital Appreciation Bonds(Project Area No.4)Series B
On July 25. 2006. the Palm Desert Financing Authority issued $14,610,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and $4,633,089 of Tax
Allocation Revenue Capital Appreciation Bonds(Project Area No.4)2006 Series B. The Palm
Desert Financing Authority loaned the bond proceeds to the Dissolved RDA. The proceeds of
the Series A and B Bonds were loaned to refinance a portion of the outstanding obligations
under a loan agreement dated March 1, 1998, fund various redevelopment capital projects
within or of benefit to its Project Area No.4, pay the premium on a Reserve Fund surety bond
and pay the costs of issuance of the bonds.
96
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
Tax Allocation Refunding Revenue Bonds{Protect Area No.4)2006 Series A and Tax Allocation
Revenue Capital Appreciation Bonds(Project Area No.4)Series B(Continued)
These bonds were refunded during in January 2017 with the issuance of the 2017B Bonds.
2017 Series A Tax Allocation Refunding 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 Na. 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.
Interest rates on the bonds vary from 2.00°/0 to 5.00°/0 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 30,2017,the outstanding principal balance on the bonds is$52,390,000.
The future debt service requirements on the 2017A Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 1.385,000 $ 2,482,000 $ 3,867,000
2019 2,740,000 2,427,050 5,167,050
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
2023-2027 22,695,000 7,577,875 30,272,875
2028-2030 16,905,000 1,549,125 18,454,125
Total $ 52,390,000 $ 20,628,775 $ 73,018,775
97
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
2017 Series B Tax Allocation Refunding 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 Bands were utilized refund the Project Area
No. 1 2006A Bonds, the Project Area No. 2 2006A Bonds. the Project Area No. 2 2006D
Bonds. the Project Area No. 3 2003 Bonds.the Project No. 3 2006A Bonds,the Project Area
No.3 200GB 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, 2017, the outstanding principal balance on the bonds is
$140,130,000.
The future debt service requirements on the 2017B Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2018 $ 2,045,000 S 4,566,788 $ 6,611,788
2019 6,545,000 4,500,828 11,045,828
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
2023-2027 40,435,000 16,040,366 56,475,366
2028-2032 28,390,000 10,642,366 39,032,366
2033- 2037 33,695,000 4,081,075 37,776,075
2038 - 2042 3,230,000 354,238 3,584,238
Total $ 140,130,000 $ 52,698,154 $ 192,828,154
98
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
2002 Series Tax Allocation(Housing Set-Aside)Revenue Bonds
On September 5, 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax
Allocation(Housing Set-Aside) Revenue Bonds Series 2002(the'2002 Housing Bonds"). The
Palm Desert Financing Authority loaned the bond proceeds to the Dissolved RDA to fund
various low and moderate housing capital projects of the Dissolved RDA and to finance costs
of issuance of the bands.
These bonds were refunded in January 2017 with the issuance of the 2017 H-A Bonds.
Tax Allocation(Housing Set-Aside)Refunding Revenue Bonds Series 2007
On February 7,2007,the Palm Desert Financing Authority issued$86,155,000 Tax Allocation
(Housing Set-Aside)Refunding Revenue Bonds Series 2007(the"2007 Housing Bonds").The
Palm Desert Financing Authority loaned the proceeds to the Dissolved RDA. The proceeds of
the bonds were loaned to finance the development of low and moderate income housing of the
Agency, refinance a portion of the outstanding obligations of the Dissolved RDA, pay the
premium on a Reserve Fund surety bond, and pay certain costs associated with the issuance
of the bonds.
These bonds were refunded in January 2017 with the issuance of the 2017H-B Bonds.
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 30,2017,the outstanding principal balance on the bonds is$7,365,000.
99
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 18: Successor Agency Disclosures (Continued)
The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds
are as follows:
Year Ending
June 30. Principal Interest Total
2018 $ 355,000 $ 319,219 $ 674,219
2019 365,000 310,194 675,194
2020 380,000 297,119 677,119
2021 395,000 279,644 674,644
2022 415,000 259,394 674,394
2023-2027 2,390.000 958.344 3,348.344
2028 - 2032 3,065.000 302.428 3,367.428
Total $ 7,365,000 $ 2,726,341 $ 10.091,341
2017 Series H-B Tax Allocation Refunding Bonds
On January 31. 2017, the Successor Agency issued the 2017H-B Bonds, in the principal
amount of$45,815,000.The proceeds from the 2017 H-B Bonds were used to refund the 2007
Housing Bond and pay certain costs associated with the issuance of the bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of($353,876),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 on
October 1.As of June 30,2017,the outstanding principal balance on the bonds is$45,815,000.
The future debt service requirements on the 2017H-B Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2018 S 6,770,000 $ 952,888 $ 7,722,888
2019 7,560,000 849.150 8,409,150
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 - 2027 12.210,000 361,481 12,571,481
Total S 45.815.000 S 3,872,225 $ 49,687,225
100
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 19: Subsequent Events
Events occurring after June 30, 2017, have been evaluated for possible adjustments to the
financial statements or disclosure as of December 15, 2017. which is the date these financial
statements were available to be issued.
101
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102
REQUIRE❑ SUPPLEMENTARY INFORMATION
103
CITY OF PALM DESERT
MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017
TOTAL PENSION LIABILITY
Service Cost $ 2,156,598 $ 2,125,437 $ 2.076.964
Interest 7,991,591 8,223,320 8.327.823
Difference between Expected and Actual Experience - (2,378,254) (4,259,317)
Changes in Assumptions - (2,091,348) -
Benefit Payments.Including Refunds of Employee Contributions (4.849.320) (4.597.025) (4.801.252)
Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218
Total Pension Liability-Beginning 107,900,900 113,199,769 114,481,899
Total Pension Liability-Ending(a) $ 113,199,769 $ 114,481,899 $ 115,826,117
PLAN FIDUCIARY NET POSITION
Contributions-Employer $ 3,320.450 $ 4.065.411 $ 4.257.322
Contributions-Employee 995.504 878.171 870.981
Net Investment Income 11.290,314 1.682,498 448,184
Benefit Payments,Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801.252)
Administrative Expense - (87,279) (47,263)
Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972
Plan Fiduciary Net Position-Beginning 64,851,550 75,608,498 77,550,274
Plan Fiduciary Net Position-Ending(b) $ 75,608.498 $ 77,550,274 $ 78,278,246
Plan Net Pension Liability/(Assets)-Ending(a)-(b) $ 37.591,271 $ 36,931,625 $ 37,547,871
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 66.79% 67.74% 67.58%
Covered-Employee Payroll $ 11,110,759 $ 11,448,621 $ 11,342,713
Plan Net Pension Liabilityl(Asset)as a Percentage of Covered-
Employee Payroll 338.33% 322.59% 331.03%
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation.
therefore only three years are shown.
Notes to Schedule:
Benefit Changes:The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30.2015
valuation date.This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k a.Golden Handshakes)
Changes of Assumptions: In 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 7.65 percent(without a reduction for pension plan administrative expense)In 2014.amounts reported were based on the 7.5
percent discount rate.
See Notes to Required Supplementary Information 104
CITY OF PALM DESERT
MISCELLANEOUS PLAN-AGENT MULTIPLE-EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30,FOR THE LAST TEN FISCAL YEARS(1)
2015 2016 2017
Actuarially Determined Contribution $ 3,393,171 $ 3,585,082 $ 4,088,258
Contribution in Relation to the Actuarially Determined Contribution (4,065,411) (4,257,322) (4,818,804)
Contribution Deficiency(Excess) $ (672.240) $ (672,240) $ (730,546)
Covered-Employee Payroll $ 11,448,621 $ 11,342,713 $ 12.145,842
Contributions as a Percentage of Covered-Employee Payroll 35.51% 37.53% 39.67%
(1) Histoncal information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation,
therefore only three years are shown.
Note to Schedule:
Valuation Date: June 30.2014
Methods and assumptions used to determine contribution rates
Actuarial cost method Entry age normal
Amortization method/period Level percentage of payroll,closed
Asset valuation method Market value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll growth 3.00%
Investment rate of return 7.65%net of pension investment and administrative expenses.
including inflation.
Retirement age The probabilities of retirement are based on the 2010 CaIPERS
Experience Study for the period from 1997 to 2007
Mortality The probabilities of retirement are based on the 2010 CaIPERS
Experience Study for the period from 1997 to 2007.Pre-
retirement and post-retirement mortality rates include 5 years of
projected mortality improvement using Scale AA published by
the Society of Actuaries.
See Notes to Required Supplementary Information 105
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108
CITY OF PALM DESERT
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS -OPEB PLAN
YEAR ENDED JUNE 30, 2017
Actuarial Actuarial
Accrued Value Unfunded UAAL as a
Actuarial Liability of Assets AAL Funded Covered %of Covered
Valuation (AAL) (AVA) (UAAL) Ratio Payroll Payroll
Date (a) (b) (a)-(b) (b)/(a) Q [(a)-(b)]/(c)
July 1,2007 $ 6,481,631 $ - $ 6,481,631 0.00% $ 13,800,864 46.97%
July 1,2009 8,230,029 6.916,360 1,313.669 84.04% 12,449,000 10.55%
June 30, 2011 9,854,151 8,986,749 867,402 91 20% 11,416,000 7.60%
June 30, 2013 11,234,217 9,709,457 1,524,760 86.43% 9,667,000 15.77/0
June 30, 2015 14,772,913 11,263,676 3,509,237 76.25°/o 10,974,000 31.98%
See Notes to Required Supplementary Information 107
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30,2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $82.362,655 $82,362,655 $82,362,655 $ -
Resources(Inflows):
Taxes
Property taxes 5,912,600 6,312,600 6,205,219 (107.381)
Property transfer tax 550,000 550,000 690,975 140,975
Property tax in lieu 3,965,500 3,965,500 3,952,594 (12,906)
Timeshare mitigation fee 1,600,000 1,600,000 1,467,028 (132,972)
Sales tax 18,800.000 18,510,000 18,505,449 (4,551)
Business license tax 1,250,000 1.250,000 1,118,183 (131,817)
Job valuation fees 30,000 30,000 29,476 (524)
Transient occupancy tax 11,315,000 15,063,000 15,054,259 (8,741)
Franchises 3,250,000 3,250,000 3,146,702 (103,298)
Penalties and interest on taxes 30,000 30,000 49,101 19,101
Total Taxes 46,703,100 50,561,100 _ 50,218,986 (342,114)
Licenses and Permits
Building permits 1.150,000 1,150,000 1,235,532 85,532
Grading permits 14,000 14,000 11,858 (2,142)
Encroachment permits 150,000 150.000 157,731 7,731
Miscellaneous permits 1,500 1.500 2,020 520
Business regulatory permits 35,000 35.000 34,776 (224)
Valet parking permits 500 500 574 74
Total Licenses and Permits 1.351,000 1,351.000 1,442,491 91,491
Intergovernmental
State mandate cost - - 1,000 1,000
Motor vehicle in-lieu fees 30,000 30,000 22,101 (7,899)
Monthly parking bail 15.000 15,000 17,196 2,196
Reimbursement RDA costs 750,000 750,000 816.238 66,238
Other reimbursements 730,000 730,000 591.573 (138,427)
Total Intergovernmental 1,525,000 1,525,000 1,448,108 (76,892)
Rental income 155,000 155,000 161.370 6,370
Charges for Services
Subdivision fees 275,000 275.000 197.638 (77,362)
Zoning fees 120,000 120,000 182,451 62,451
Plan check fees 450,000 450,000 431,115 (18,885)
Sale of maps and publications 15,000 15,000 6,166 (8,834)
Microfilm fees 15.000 15.000 2,593 (12,407)
Vehicle impact fee - 483.000 483,680 680
Other fees 70,000 70,000 159,242 89,242
Total Charges for Services 945,000 1.428,000 1,462,885 34,885
Investment Earnings
Interest income 350,000 410,000 435.591 25,591
Interest on notes receivable 175,000 175,000 208.750 33.750
Total investment Earnings 525,000 585,000 644,341 183,468
Fines and Forfeitures
Vehicle code fines 20,000 20.000 34,687 14.687
Municipal court fines 15.000 15.000 4,316 (10,684)
VICR fees 75.000 75.000 63,454 (11,546),
Total Fines and Forfeitures 110.000 110.000 102,457 (7,543)
Miscellaneous
Code compliance 8,000 8,000 20.500 12,500
Strong motion instrument fee 10,000 10,000 13,831 3,831
Special investigation fee 5,000 5,000 159 (4,841)
Certificate of compliance fee 2,000 2,000 2,050 50
Nuisance abatement tax 30,000 30,000 49,966 19,966
Abandoned vehicle abatement 50.000 50,000 56,824 6,824
Fire inspection service 220,000 220,000 207,332 (12,668)
Other revenue 85.000 85,000 248,570 163,570
Total Miscellaneous 410.000 410,000 599,232 189,232
Transfers in 1,602,500 1,602,500 1,472,852 (129,6481
Amounts Available for Appropriations 135,689,255 140,090,255 139,915,377 (174,878)
See Notes to Required Supplementary Information 108
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30,2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Charges to Appropriation(Outflow):
General Government
City Council 287,640 316,140 289,752 26,388
City Clerk 953,917 977,637 977,588 49
Legislative Advocacy 36.180 36,180 36,180 -
Elections 70,500 74,100 74,072 28
City Attorney 254.600 254,600 225,179 29,421
Legal Special Services 250,000 280,000 223,262 56.738
City Manager 905.389 952,007 861,420 90.587
Community Services 475,425 477,334 467,815 9.519
Finance 1,887,816 1,912,766 1,878,656 34,110
Independent Audit 70,000 82,500 59,608 22,892
Human Resources 564,263 699,760 523,175 176,585
General Services 539,400 1,176,645 1,123,043 53,602
Information Technology 932,755 1,003,911 978,882 25,029
Unemployment Insurance 10,000 10,000 3,977 6,023
Insurance 474,500 523.500 515,619 7,881
Retiree Funding - 1,214.527 1,214,527
Contributions to other Agencies 699,500 649,500 547,920 101,580
Community Promotions 869,500 1,081,500 1,062.611 18,889
Marketing 1,329,036 1,226,708 1,099,991 126,717
Visitors Info Center 184,618 188,103 188,054 49
Economic Development Center 1,244,775 1,050,400 1,037,844 12,556
Planning&Community Dev. 2,484,638 2,498,069 2,417,882 80,187
Total General Government 14,524,452 16,685,887 15,807,057 878,830
Public Safety
Police Services 21,141.245 19,831,245 19,827,580 3,665
Animal Regulation 245,000 245,000 237,861 7,139
Traffic Safety 255,000 384,380 358,808 25.572
Building and Safety 1,788,034 1.854,727 1.849,442 5,285
Total Public Safety 23,429,279 22,315352 22.273,691 41,661
Parks,Recreation and Culture
Civic Center Park 1,042,350 1.108,283 1,098,348 9,935
Park Maintenance 902,600 908,978 865,846 43,132
Landscaping Service 1,842,775 2,101,580 2.061,282 40,298
Civic Center Park-Improvement - 278,700 202,103 76,597
Total Parks,Recreation and Culture 3,787,725 4,397,541 4,227,579 169,962
Public Works
Administration 2,971,825 2,674,706 2,637,630 37,076
Street Maintenance 2.756,653 2,427,624 2,418,451 9,173
Street Resurfacing - 217.462 25,326 192,136
Curb&Gutter - 10,000 - 10,000
Parking Lot - 50,000 50,000 -
Corporate Yard 70.500 70,500 70,123 377
Auto Fleet l Equipment 421,000 251,000 238,209 12,791
Public Bldg-Opr/Maint. 537,534 540,002 537,090 2,912
Portola Comm Center 73,250 73,250 60,489 12,761
Storm Water Permit 60,000 60,000 14,966 45,034
Total Public Works 6,890,762 6,374,544 6,052.284 322.260
Capital outlay - 70,000 66,500 3.500
Transfers out 4,635,000 7,502,699 7,501,722 977
Total Charges to Appropriations 53,267,218 57,346,023 55,928,833 1,417,190
Budgetary Fund Balance,June 30 $82,422,037 1 82,744,232 $83,986,544 $ 1,242,312
See Notes to Required Supplementary Information 109
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $19,246,471 $19,246,471 $19,246,471 $ -
Resources(Inflows):
Taxes 2,729,000 2,729,000 2,627,896 (101,104)
Intergovernmental 640,000 640,000 1,430,603 790,603
Investment earnings 45,000 45,000 113,730 68,730
Amounts Available for Appropriations 22,660,471 22,660,471 23,418,700 758,229
Charges to Appropriation (Outflow):
Public works 2,250,000 4,316,738 623,077 3,695,661
Capital outlay 4,395,500 21,572,428 1,250,356 20,322,072
Total Charges to Appropriations 6,645,500 25,891,166 1,873,433 24,017,733
Budgetary Fund Balance,June 30 $16,014,971 $ (3,230,695) $21,545,267 $ 24,775,962
See Notes to Required Supplementary Information 110
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,302,300 $ 2,302,300 $ 2.302,300 $ -
Resources (inflows):
Taxes 5,300,000 5,300,000 5,684,299 384,299
Assessments 2,200,000 2,200.000 2,101.472 (98,528)
Intergovernmental 1,050,000 1,050.000 1,064,177 14,177
Investment earnings 10,000 10,000 16,781 6,781
Miscellaneous 30,000 30,000 18.950 (11,050)
Transfers in 3.800,000 3,800,000 3,209,863 (590,137)
Amounts Available for Appropriations 14,692,300 14,692,300 14,397,842 (294,458)
Charges to Appropriation (Outflow):
Public safety 12.850,432 12.850,432 12,095.542 754,890
Total Charges to Appropriations 12,850,432 12,850,432 12,095,542 754,890
Budgetary Fund Balance,June 30 $1,841,868 $ 1,841,868 $ 2,302,300 $ 460,432
See Notes to Required Supplementary Information 111
•
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING ASSET FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance. July 1 $48,378,725 $48,378,725 $48,378,725 5 -
Resources (Inflows):
Investment earnings 68,000 68.000 250,294 182,294
Miscellaneous - - 102,21E 102,216
Proceeds from sale of capital asset 200.000 200,000 - (200,000)
Amounts Available for Appropriations 48,646,725 48,646,725 48,731,235 84,510
Charges to Appropriation (Outflow):
Housing and redevelopment 820,300 1,748,754 1,209,753 539.001
Capital outlay 25,500 51,000 - 51.000
Total Charges to Appropriations 845,800 1,799,754 1,209,753 590,001
Budgetary Fund Balance,June 30 $47,800,925 $46,846,971 $47,521,482 $ 674,511
See Notes to Required Supplementary Information 112
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $20,739,131 $20.739,131 $20,739,131 5 -
Resources (Inflows):
Rents 5,989,977 5,989.977 6,278,088 288,111
Intergovernmental - - 1,094,110 1,094,110
Investment earnings - - 95,800 95,800
Miscellaneous - - 38 38
Transfers in - - 2,884,402 2,884,402
Amounts Available for Appropriations 26,729,108 26,729,108 31,091,569 4,362,461
Charges to Appropriation (Outflow):
Housing and redevelopment 5,610,859 13,194,364 7.318,100 5,876,264
Capital outlay - 1,772,248 1,578 1,770,670
Transfers out 824,324 824,324 3.536,229 (2,711,905)
Total Charges to Appropriations 6,435,183 15,790,936 10,855,907 4,935,029
Budgetary Fund Balance, June 30 $20,293,925 $10,938,172 $20,235,662 $ 9,297,490
See Notes to Required Supplementary Information 113
CITY OF PALM DESERT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2017
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 fallowing 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.
E. 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 adapt project length budgets and debt service funds that are not
budgeted as effective budgetary control is achieved through debt indenture provisions. The
following funds did not have legally adopted budgets during the current fiscal year:
Other Governmental Funds
Library
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment District
Assessment 29
114
❑THER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
115
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30,2017
Special Capital Total Other
Revenue Projects Debt Service Governmental
Funds Funds Fund Funds
ASSETS:
Pooled cash and investments $ 21,207,494 $ 14,313,715 $ 194,949 $ 35,716,158
Receivables:
Accounts 369,982 - - 369,982
Assessments 7,674 - 1,268,926 1,276,600
Loans 3,846,120 - - 3,846,120
Interest 262,919 2,010,611 - 2,273,530
Prepaid costs 1,176 100 - 1,276
Due from other governments 261,724 16,062 5,937 283,723
Due from other funds - 500,000 - 500,000
Inventories 4,520 - - 4,520
Restricted assets:
Cash and investments with fiscal agents - 1,998,343 - 1,998,343
Advances to Successor Agency 654,000 12,765,000 - 13,419,000
TOTAL ASSETS $ 26,615,609 $ 31,603,831 $ 1,469,812 $ 59,689,252
LIABILITIES:
Accounts payable $ 464,169 $ 170,349 $ 1,633 $ 636,151
Accrued liabilities 10,543 4,278 - 14,821
Unearned revenues 60,535 63,041 - 123,576
Deposits payable - 134,930 109,526 244,456
Due to other funds 2,268,800 2,553,000 - 4,821,800
TOTAL LIABILITIES 2,804,047 2,925,598 111,159 5,840,804
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 277,789 1,991,340 1,268,926 3,538,055
FUND BALANCES:
Nonspendable:
Prepaid costs 1,176 100 - 1,276
Restricted for:
Public safety 1,080,562 - - 1,080,562
Capital Projects - 2,003,904 - 2,003,904
Debt service - - 89,727 89,727
Street related purposes 4,742,216 4,742,216
Low income housing
Public facilities
2,797,065 2,797,065
4,207,645 4,207,645
Special programs 5,809,542 1,448,255 7,257,797
Committed to:
Aquatic center 2,133,260 - 2,133,260
Energy loan program 2,762,307 - 2,762,307
Assigned to:
Capital projects 8 783 891 8,783,891
Property acquisition - 420,387 - 420,387
Public facilities - 11,107,304 - 11,107,304
Special programs - 667,255 - 667,255
Street related purposes - 2,255,797 - 2,255,797
TOTAL FUND BALANCES 23,533,773 26,686,893 89,727 50,310,393
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 26,615,609 $ 31,603,831 $ 1,469,812 $ 59,689,252
116
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2017
Special Capital Debt Service Total Other
Revenue Projects Fund Governmental
Funds Funds Funds
REVENUES:
Taxes $ 935.364 $ - $ - $ 935,364
Special assessments collected 1,084.287 - 132,355 1,216,642
Licenses and permits - 236,218 - 236,218
Intergovernmental revenues 1,656,344 556,173 - 2,212,517
Charges for services 893.478 - - 893,478
Investment earnings 426,851 107,860 798 535,509
Fines and forfeitures 32.819 - - 32,819
Miscellaneous 124.092 1,749,905 - 1,873,997
TOTAL REVENUES 5,153,235 2,650,156 133,153 7,936,544
EXPENDITURES:
Current:
General government 996,180 64,550 19,506 1,080,236
Public safety 305,185 - - 305,185
Parks, recreation and culture 1,422,073 1.508,169 - 2,930,242
Public works 881,258 697,824 - 1,579,082
Housing and redevelopment 711,827 - - 711,827
Capital outlay 484,403 366,198 - 850,601
Debt service:
Principal retirement 196,000 - 41,000 237,000
Interest and fiscal charges 204,820 - 72,994 277,814
TOTAL EXPENDITURES 5,201,746 2,636,741 133,500 7,971,987
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (48,511) 13,415 (347) (35.443)
OTHER FINANCING SOURCES(USES)
Transfers in 1.481,842 357,929 - 1,839,771
Transfers out 045.352) (1,135,125) - (1,180,477)
TOTAL OTHER FINANCING
SOURCES(USES) 1,436,490 (777,196) - 659,294
NET CHANGE IN FUND BALANCES 1.387.979 (763,781) (347) 623,851
FUND BALANCES-BEGINNING OF YEAR 22,145,794 27,450,674 90,074 49,686,542
FUND BALANCES-END OF YEAR $ 23,533,773 $ 26,686,893 $ 89,727 $ 50,310,393
117
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118
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 Safety 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.
Community 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 person/entity for the construction of any new building, addition or trailer
space in the city according to a fee schedule. Its use is restricted for the acquisition and development of
public facilities such as parks, playgrounds and public structures.
Planned Drainage Fund -This fund is used to account for off-site drainage fees based on an established
fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to
the issuance of a building permit in the case of construction or improvement of subdivided land.
Park and Recreation 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 Signals 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.
Recycling 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.
119
OTHER GOVERNMENTAL FUNDS -SPECIAL REVENUE
CONTINUED)
Energy Independence Loan Fund —This fund is used to provide funding for the AB811 Energy Loans and
collect assessments from those AB811 loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the AB811 loans.
Air Quality Management Fund — This fund accounts for receipts from South Coast Air Quality
Management District. sixty percent of which is disbursed to the Coachella Valley Association of
Governments.
Aquatic Center Fund —This fund is used to account for revenues and expenditures for the City's aquatic
facility.
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 on a fee schedule established for the various types of businesses. Proceeds from all charges
are used for the promotion of business activities in the area.
Various Landscape and Lighting 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 Housing Fund — This fund is used to account for the management and
operation of the City's housing assets.
120
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121
EIN
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2017
Community
Housing Development
Traffic Safety Gas Tax Mitigation Fee Block Grant
ASSETS:
Pooled cash and investments S - $ 2.261.858 $ 2.797.065 S 14.293
Receivables'
Accounts
Assessments
Loans - - - 14,870
Interest -
Prepaid costs
Due from other governments 1.444 91.241 - 78.193
I nventories
Advances to Successor Agency
TOTAL ASSETS $ 1,444 $ 2.353,099 $ 2,797,065 S 107,356
LIABILITIES:
Accounts payable S - S - S - $ 68.154
Accrued liabilities
Unearned revenues
Due to other funds
TOTAL LIABILITIES - - - 68,154
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
- - - 14.870
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Public safety _ - -
Street related purposes 1.444 2.353,099 -
Low income housing - - 2.797,065 -
Public facilities -
Special programs _ -
24.332
Committed to:
Aquatic center
Energy loan program - - -
TOTAL FUND BALANCES 1,444 2,353,099 2,797,065 24,332
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,444 $ 2.353,099 $ 2,797,065 $ 107,356
122
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2017 (CONTINUED)
New
Child Care Public Safety Construction Planned
Program Police Grants Tax ❑rainage
ASSETS:
Pooled cash and investments 5 1.273.375 $ 23.543 $ 986,166 $ 2,026,500
Receivables:
Accounts - 1,441 - -
Assessments - - - -
Loans - - - -
Interest - - 102.024 -
Prepaid costs - - - -
Due from other governments 27.282 - -
Inventories - -Advances to Successor Agency - - 654,000 -
TOTAL ASSETS $ 1,273,375 $ 52,266 $ 1,742,190 $ 2,026,500
LIABILITIES:
Accounts payable 5 - $ 11,776 $ 23,267 5 28.501
Accrued liabilities - - - -
Unearned revenues - 33,615 - -
Due to other funds - - 130,800 -
TOTAL LIABILITIES - 44,791 154,067 28,501
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - 102,024 •
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Public safety - 7,475 - -
Street related purposes - - - 1,997.999
Low income housing - - - -
Public facilities 1,273,375 - 1,486,099 -
Special programs - - - -
Committed to:
Aquatic center - - - -
Energy loan program - - -
TOTAL FUND BALANCES 1,273,375 7,475 1,486,099 1,997,999
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1.273,375 $ 52,266 $ 1,742,190 $ 2,026,500
123
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2017
Parks and
Recreation Traffic Fire Facilities
Facilities Signals Restoration Recycling
ASSETS:
Pooled cash and investments 5 1,450.051 $ 389.674 5 1,073.087 $ 2,754,417
Receivables-
Accounts - - 4,194
Assessments
Loans - -
Interest _ _ -
Prepaid costs - -
❑ue from other governments - - - 24.072
Inventories
Advances to Successor Agency
TOTAL ASSETS $ 1,450,051 $ 389,674 5 1,073,087 $ 2,782,683
LIABILITIES:
Accounts payable 5 1 888C s - S - S 39,367
Accrued liabilities - 1,718
Unearned revenues
- - - 8,643
Due to other funds
TOTAL LIABILITIES 1,880 - - 49,728
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues •
FUND BALANCES:
Nonspendable:
Prepaid costs _ _ -
Restricted for:
Public safety - - 1,073,087 -
Street related purposes - 389,674 -
Low income housing _ - -
Public facilities 1.448.171 - - -
Special programs - - - 2,732,955
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES 1,448,171 389,674 1,073,087 2,732,955
TOTAL LIABILITIES.DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 5 1,450.051 $ 389,674 $ 1,073,087 $ 2,782,683
124
CITY OF PALM DESERT
COMBINING BALANCE SHEET
❑THER SPECIAL REVENUE FUNDS
JUNE 30,2017 (CONTINUED)
Energy El Paseo
Independence Air Quality Aquatic Assessment
Loan Management Center District
ASSETS:
Pooled cash and investments $ 1,061,418 $ 110,234 $ 1.939,572 $ 58,321
Receivables:
Accounts - - 364,347 -
Assessments 7.674 - - -
Loans 3,831,250 - - -
Interest 160.895 - - -
Prepaid costs - - 1,176 -
❑ue from other governments - 16,015 - -
Inventories - - 4.520 -
Advances to Successor Agency - - - -
TOTAL ASSETS $ 5,061,237 $ 126,249 $ 2,309,615 $ 58,321
LIABILITIES:
Accounts payable $ 35 $ 66,738 $ 156.302 $ 7.150
Accrued liabilities - - - -
Unearned revenues - 18.877 -
Due to other funds 2,138.000 - - -
TOTAL LIABILITIES 2,138,035 66,738 176,179 7,150
❑EFERRED INFLOWS OF RESOURCES:
Unavailable revenues 160,895 - - -
FUND BALANCES:
Nonspendable:
Prepaid costs - - 1,176 -
Restricted For:
Public safety - - - -
Street related purposes - - - -
Low income housing - - -
Public facilities - - - -
Special programs - 59.511 - 51,171
Committed to:
Aquatic center - - 2.133.260 -
Energy loan program 2.762.307 - -
TOTAL FUND BALANCES 2,762,307 59,511 2,134,436 51,171
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 5,061,237 S 126,249 S 2,309,615 $ 58,321
125
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30,2017
Landscape
and Lighting Former RDA Total Other
Districts Nos.1 Low Income Special
-17 Housing Revenue Funds
ASSETS:
Pooled cash and investments $ 2.979.095 5 8.825 $ 21.207.494
Receivables.
Accounts - 369.982
Assessments - - 7.674
Loans - - 3.846.120
Interest - - 252.919
Prepaid costs - - 1,176
❑ue from other governments 23 477 - 261,724
Inventories - - 4,520
Advances to Successor Agency - - 654,000
TOTAL ASSETS $ 3,002,572 5 8.825 5 26,615,609
LIABILITIES:
Accounts payable $ 60.999 5 - $ 464.169
Accrued liabilities - 8,825 10.543
Unearned revenues - 60.535
❑ue to other funds - - 2.268.800
TOTAL LIABILITIES 60,999 8,825 2,804,047
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
- - 277.789
FUND BALANCES:
None pendable:
Prepaid costs - - 1.176
Restricted for:
Public safety - - 1.080,562
Street related purposes - - 4.742,216
Low income housing - - 2.797,065
Public facilities - 4,207,645
Special programs 2,941,573 - 5,809,542
Committed to:
Aquatic center - - 2,133,260
Energy loan program - - 2.762.307
TOTAL FUND BALANCES 2,941,573 - 23,533,773
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 5 3,002,572 $ 8,825 $ 26,615.609
126
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127
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2017
Housing Community
Mitigation Development
Traffic Safety Gas Tax Fee Block Grant
REVENUES:
Taxes $ - $ - $ 242,858 $ -
Special assessments collected _ _ - -
Intergovernmental revenues - 952,827 - 246,428
Charges for services _ _ - -
Investment earnings 228 14,365 24,021 131
Fines and forfeitures 32,819 - - -
Miscellaneous - - 60,000 5,020
TOTAL REVENUES 33,047 967,192 326,879 251,579
EXPENDITURES:
Current:
General government - - - 246,428
Public safety - - - -
Parks, recreation and culture - - - -
Public works - - -
Housing and redevelopment - - 60,000 -
Capital outlay - - _ -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - - 60,000 246,428
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 33,047 967,192 266,879 5,151
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out (45,352) - - -
TOTAL OTHER FINANCING
SOURCES(USES) _ (45,352) - - -
NET CHANGE IN FUND BALANCES (12,305) 967,192 266,879 5,151
FUND BALANCES-BEGINNING OF YEAR 13,749 1,385,907 2,530,186 19,181
FUND BALANCES-END OF YEAR $ 1,444 $2,353,099 $2,797,055 $ 24,332
128
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2017 (CONTINUED)
Public New
Child Care Safety Police Construction Planned
Program Grants Tax Drainage
REVENUES:
Taxes $ 69.482 $ - $ 199:849 $ 37.030
Special assessments collected - - - -
Intergovernmental revenues - 305,185 - -
Charges for services - - - -
Investment earnings 6.904 349 4.940 11,695
Fines and forfeitures - - - -
Miscellaneous - 100 - -
TOTAL REVENUES 76,386 305,634 204,789 48,725
EXPENDITURES:
Current:
General government - - 28,787 -
Public safety - 305,185 - -
Parks, recreation and culture - - - -
Public works - - 8,550 130,687
Housing and redevelopment - - - -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - 305,185 37,337 130,687
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 76.386 449 167.452 (81,962)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - - -
NET CHANGE IN FUND BALANCES 76.386 449 167,452 (81,962)
FUND BALANCES-BEGINNING OF YEAR 1.196,989 7,026 1,318,647 2.079,961
FUND BALANCES-END OF YEAR $ 1,273,375 $ 7,475 $ 1,486,099 $ 1,997,999
129
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2017
Park and Fire
Recreation Traffic Facilities
Facilities Signals Restoration Recycling
REVENUES:
Taxes $ 314,438 $ 36,566 $ 35,141 $ -
Special assessments collected - - - -
Intergovernmental revenues 15,896 - - 73,007
Charges for services - - - 113,791
Investment earnings 7,761 2.088 5,922 16,179
Fines and forfeitures - - - -
Miscellaneous - - - 972
TOTAL REVENUES 338,095 38,654 41,063 203,949
EXPENDITURES:
Current:
General government - - - 433,293
Public safety - - - -
Parks, recreation and culture - - - 27,099
Public works - - - 35,651
Housing and redevelopment - - - -
Capital outlay 195,279 - - 144,606
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 195,279 - - 640,649
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 142,816 38,654 41,063 (436,700)
OTHER FINANCING SOURCES(USES)
Transfers in - 122,517
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - 122,517
NET CHANGE IN FUND BALANCES 142,816 38,6544 41,063 (314,183)
FUND BALANCES-BEGINNING OF YEAR 1,305,355 351,020 1,032,024 3,047,138
FUND BALANCES-END OF YEAR $ 1,448,171 $ 389,674 $ 1,073,087 $ 2,732,955
130
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2017 (CONTINUED)
Energy El Paseo
Independence Air Quality Aquatic Assessment
Loan Management Center District
REVENUES:
Taxes $ - $ - $ - $ -
Special assessments collected - - - 235,225
Intergovernmental revenues - 63,001 - -
Charges for services - - 779.687 -
Investment earnings 308,097 603 13.840 -
Fines and forfeitures - - - -
Miscellaneous - 58,000 - -
TOTAL REVENUES 308,097 121,604 793,527 235,225
EXPENDITURES:
Current:
General government 10,035 33.901 - 243.735
Public safety - - - -
Parks, recreation and culture - - 1,394,974 -
Public works - - - -
Housing and redevelopment - - - -
Capital outlay - 132,132 12,386 -
Debt service:
Principal retirement 196.000 - - -
Interest and fiscal charges 204,820 - - -
TOTAL EXPENDITURES 410,855 166,033 1,407,360 243,736
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (102,758) (44,429) (613,833) (8.511)
OTHER FINANCING SOURCES(USES)
Transfers in - - 613,833 -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - 613,833 -
NET CHANGE 1N FUND BALANCES (102,758) (44:429) - (8,511)
FUND BALANCES-BEGINNING OF YEAR 2,865,065 103,940 2,134,436 59,682
FUND BALANCES-END OF YEAR $ 2,762,307 $ 59,511 $ 2,134,436 $ 51,171
131
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2017
Landscape
and Lighting Former RDA Total Other
Districts Nos. Low Income Special Revenue
1 -17 _ Housing Funds
REVENUES'
Taxes $ - $ - $ 935.364
Special assessments collected 849.062 - 1.084.287
Intergovernmental revenues - - 1.656.344
Charges for services - - 893.478
Investment earnings 9.728 - 426.851
Fines and forfeitures - - 32,819
Miscellaneous - - 124,092
TOTAL REVENUES 858,790 - 5,153,235
EXPENDITURES:
Current:
General government - - 996.180
Public safety - - 305,185
Parks, recreation and culture - - 1,422,073
Public works 706,370 - 881,258
Housing and redevelopment - 651,827 711,827
Capital outlay - - 484,403
❑ebt service:
Principal retirement - - 196.000
Interest and fiscal charges - - 204.820
TOTAL EXPENDITURES 706,370 651,827 5,201,746
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 152.420 (651.827) (48,511)
OTHER FINANCING SOURCES(USES)
Transfers in 93,665 651.827 1,481,842
Transfers out - - (45.352)
TOTAL OTHER FINANCING
SOURCES(USES) 93,665 651,827 1,436,490
NET CHANGE IN FUND BALANCES 246.085 - 1.387.979
FUND BALANCES-BEGINNING OF YEAR 2.695.488 - 22,145,794
FUND BALANCES-END OF YEAR $ 2,941,573 $ - $ 23,533,773
132
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 13,749 $ 13,749 S 13,749 $ -
Resources (Inflows):
Investment earnings 100 100 228 128
Fines and forfeitures 135,000 135,000 32,819 (102,181)
Amounts Available for Appropriations 148,849 148,849 46,796 (102,053)
Charges to Appropriation (Outflow):
Transfers out 135,000 135,000 45,352 89,648
Total Charges to Appropriations 135,000 135,000 45,352 89,648
Budgetary Fund Balance,June 30 $ 13,849 $ 13,849 $ 1,444 $ (12,405)
133
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GAS TAX
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original _ Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,385,907 $ 1,385,907 $ 1,385,907 $ -
Resources (Inflows):
Intergovernmental 1,320,790 1,320,790 952,827 (367,963)
investment earnings 1,500 1,500 14,365 12,865
Amounts Available for Appropriations 2,708,197 2,708,197 2,353,099 (355,098)
Charges to Appropriation (Outflow):
Public works 1,000,000 1,000,000 - 1,000,000
Total Charges to Appropriations 1,000,000 1,000,000 1,000,000
Budgetary Fund Balance,June 30 $1,708,197 $ 1,708,197 $ 2,353,099 $ 644,902
134
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING MITIGATION FEE
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,530,186 $ 2,530.186 $ 2,530,186 $ -
Resources(Inflows):
Taxes 78,300 78,300 242,858 164,558
Investment earnings 15,000 15,000 24,021 9,021
Miscellaneous 30,000 30,000 60,000 30,000
Amounts Available for Appropriations 2,653,486 2,653,486 2,857,065 203,579
Charges to Appropriation (Outflow):
Housing and redevelopment 450,000 450,000 60,000 390,000
Total Charges to Appropriations 450,000 450,000 60,000 390,000
Budgetary Fund Balance, June 30 $2,203,486 $ 2,203,486 $ 2,797,065 $ 593,579
135
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 19,181 $ 19,181 $ 19,181 $ -
Resources (Inflows):
Intergovernmental 294.670 294,670 246,428 (48,242)
Investment earnings - - 131 131
Miscellaneous - - 5,020 5,020
Amounts Available for Appropriations 313,851 _ 313,851 270,760 (43,091)
Charges to Appropriation (Outflow):
General government 294,670 387,032 246,428 140,604
Total Charges to Appropriations 294,670 387,032 246,428 140,604
Budgetary Fund Balance,June 30 $ 19,181 $ (73,181) $ 24,332 $ 97,513
136
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CHILD CARE PROGRAM
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,196,989 $ 1,196,989 $ 1,196.989 $ -
Resources (Inflows):
Taxes 44.600 44,600 69.482 24,882
Investment earnings 4,000 4,000 6.904 2,904
Amounts Available for Appropriations 1,245,589 1,245,589 1,273,375 27,786
Charges to Appropriation (Outflow):
Capital outlay 53,790 1,079,440 - 1,079,440
Total Charges to Appropriations 53,790 1,079,440 - 1,079,440
Budgetary Fund Balance,June 30 $1,191,799 $ 166,149 $ 1,273,375 $ 1,107,226
137
I
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY POLICE GRANTS
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 7,026 $ 7,026 $ 7,026 $ -
Resources(Inflows):
Intergovernmental 100,000 300,000 305,185 5,185
Investment earnings - - 349 349
Miscellaneous - - 100 100
Amounts Available for Appropriations 107,026 307,026 312,660 5,634
Charges to Appropriation (Outflow):
Public safety 100,000 305,200 305,185 15
Total Charges to Appropriations 100,000 305,200 305,185 15
Budgetary Fund Balance,June 30 $ 7,026 $ 1,826 $ 7,475 $ 5,649
138
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
NEW CONSTRUCTION TAX
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,318,647 $ 1,318,647 $ 1,318.647 $ -
Resources (Inflows):
Taxes 202,520 202,520 199.849 (2,671)
Investment earnings 2,000 2,000 4.940 2,940
Amounts Available for Appropriations 1,523,167 1,523,167 1,523,436 269
Charges to Appropriation (Outflow):
General government - 32,085 28,787 3,298
Public works 75,000 201,313 8.550 192,763
Total Charges to Appropriations 75,000 233,398 37,337 196,061
Budgetary Fund Balance,June 30 $1,448,167 $ 1,289,769 $ 1,486,099 $ 196,330
139
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PLANNED DRAINAGE
YEAR ENDED JUNE 30,2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,079,961 $ 2,079,961 $ 2,079,961 $ -
Resources(Inflows):
Taxes 152,500 152,500 37,030 (115,470)
investment earnings 5,000 5,000 11,695 6,695
Amounts Available for Appropriations 2,237,461 2,237,461 2,128,686 (108,775)
Charges to Appropriation (Outflow):
Public works 300,000 1,665,800 130,687 1,535,113
Total Charges to Appropriations 300,000 1,665,800 130,687 1,535,113
Budgetary Fund Balance,June 30 $1,937,461 $ 571,661 $ 1,997,999 $ 1,426,338
140
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARK AND RECREATION FACILITIES
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,305,355 S 1,305,355 $ 1,305,355 $ -
Resources (Inflows):
Taxes 110,000 110,000 314,438 204,438
Intergovernmental - - 15,896 15,896
Investment earnings 2,000 2,000 7,761 5,761
Amounts Available for Appropriations 1,417,355 1,417,355 1,643,450 226,095
Charges to Appropriation (Outflow):
Capital outlay 406,500 630,982 195,279 435.703
Total Charges to Appropriations 406,500 630,982 195,279 435,703
Budgetary Fund Balance,June 30 $1,010,855 $ 786,373 $ 1,448,171 $ 661,798
141
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SIGNALS
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 351,020 $ 351,020 $ 351,020 $ -
Resources(Inflows):
Taxes 115,000 115,000 36,566 (78,434)
Investment earnings 500 500 2,088 1,586
Amounts Available for Appropriations 466,520 466,520 389,674 (76,846)
Charges to Appropriation(Outflow):
Capital outlay 25,000 325,000 - 325,000
Total Charges to Appropriations 25,000 325,000 - 325,000
Budgetary Fund Balance,June 30 $ 441,520 $ 141,520 $ 389,674 $ 248,154
142
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITIES RESTORATION
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $1,032,024 $ 1,032,024 $ 1,032,024 $ -
Resources (Inflows):
Taxes 66,920 66,920 35,141 (31,779)
Investment earnings 3,500 3,500 5,922 2,422
Amounts Available for Appropriations 1,102,444 1,102,444 1,073,087 (29,357)
Charges to Appropriation (Outflow):
Capital outlay 30,565 1,000.171 - 1,000,171
Total Charges to Appropriations 30,565 1,000,171 - 1,000,171
Budgetary Fund Balance,June 30 $1,071,879 $ 102,273 $ 1,073,087 $ 970,814
143
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
RECYCLING
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
_ Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 S 3.047,138 $ 3,047,138 $ 3,047,138 5 -
Resources (Inflows):
Intergovernmental - - 73,007 73.007
Charges for services - - 113,791 113,791
Investment earnings 10.000 10,000 16,179 6,179
Miscellaneous - - 972 972
Transfers in - - 122,517 122,517
Amounts Available for Appropriations 3,057,138 3,057,138 3,373,604 316,466
Charges to Appropriation (Outflow):
General government 538,780 609,220 433,293 175,927
Parks, recreation and culture 30,000 30,000 27,099 2,901
Public works 340,000 340,000 35,651 304,349
Capital outlay 155,000 155.000 144,606 10,394
Transfers out 40,000 40.000 - 40.000
Total Charges to Appropriations 1,103,780 1,174,220 640,649 533,571
Budgetary Fund Balance, June 30 $1,953,358 $ 1,882,918 $ 2,732,955 $ 850,037
144
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ENERGY INDEPENDENCE LOAN
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,865,065 $ 2,865,065 $ 2.865,065 $ -
Resources (Inflows):
Investment earnings 576,500 576,500 308,097 (268.403)
Amounts Available for Appropriations 3,441,565 3,441,565 3,173,162 (268,403)
Charges to Appropriation (Outflow):
General government 10,000 10,000 10,035 (35)
Debt service:
Principal retirement 116,000 196,000 196,000 -
Interest and fiscal charges 206,940 206,940 204.820 2,120
Total Charges to Appropriations 332,940 412,940 410,855 2,085
Budgetary Fund Balance,June 30 $3,108,625 $ 3,028,625 $ 2,762,307 $ (266,318)
145
•
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 103,940 $ 103,940 $ 103,940 $ -
Resources (Inflows):
Intergovernmental 62,000 62,000 63,001 1,001
Investment earnings 200 200 603 403
Miscellaneous - - 58,000 58,000
Amounts Available for Appropriations 166,140 166,140 225,544 59,404
Charges to Appropriation (Outflow):
General government 39,700 39,700 33,901 5,799
Capital outlay - 132,135 132,132 3
Total Charges to Appropriations 39,700 171,835 166,033 5,802
Budgetary Fund Balance,June 30 $ 126,440 $ (5,695) $ 59,511 $ 65,206
146
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AQUATIC CENTER
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance. July 1 $2,134,436 $ 2.134,436 $ 2.134,436 $ -
Resources (Inflows):
Charges for services 719,125 719,125 779.687 60,562
Investment earnings 4,500 4,500 13.840 9,340
Transfers in 680,000 680,000 613.833 (66,167)
Amounts Available for Appropriations 3,538,061 3,538,061 3,541,796 3,735
Charges to Appropriation (Outflow):
Parks, recreation and culture 1,423,550 1,423,550 1,394.974 28.576
Capital outlay - - 12,386 (12,386)
Total Charges to Appropriations 1,423,550 1,423,550 1,407,360 16,190
Budgetary Fund Balance,June 30 $2,114,511 $ 2,114,511 $ 2,134,436 $ 19,925
147
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
EL PASEO ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5 59,682 5 59,682 $ 59,682 $ _
Resources (Inflows):
Assessments 250,000 250,000 235,225 (14,775)
Amounts Available for Appropriations 309,682 309,682 294,907 (14,775)
Charges to Appropriation (Outflow):
General government 250.000 250,000 243.736 6,264
Total Charges to Appropriations 250,000 250,000 243,736 6,264
Budgetary Fund Balance, June 30 $ 59,682 $ 59,682 $ 51,171 $ (8,511)
148
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICT NOS 1 -17
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,695,488 $ 2,695,488 $ 2,695,488 $ -
Resources (Inflows):
Assessments 861,667 861.667 849,062 (12,605)
Investment earnings 400 400 9,728 9,328
Transfers in 75,000 75,000 93,665 18,665
Amounts Available for Appropriations 3,632,555 3,632,555 3,647,943 15,388
Charges to Appropriation (Outflow):
Public works 822.706 827.499 706.370 121,129
Total Charges to Appropriations 822,706 827,499 706,370 121,129
Budgetary Fund Balance,June 30 $2,809,849 $ 2,805,056 $ 2,941,573 $ 136,517
149
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FORMER RDA LOW INCOME HOUSING
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance. July 1 5 - 5 - 5 - 5 -
Resources (Inflows):
Transfers in 824.324 824.324 651.827 (172,497)
Amounts Available for Appropriations 824,324 824,324 651,827 (172,497)
Charges to Appropriation (Outflow):
Housing and redevelopment 823,324 827,499 651,827 175,672
Capital outlay 1,000 1.000 - 1.000
Total Charges to Appropriations 824,324 828,499 651,827 176,672
Budgetary Fund Balance,June 30 $ - $ (4,175) $ - $ 4,175
150
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 Projects 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.
Drainage 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 façade enhancement projects for Palm Desert
businesses utilizing funds from the sales of certain City-owned properties.
Parks and Recreation 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.
Arts in Public Places Fund - This fund is used to account for fees collected from residential, commercial
and public facilities development except for street and drainage projects. Its use is restricted for
acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the
administration of the program and community public art education programs.
Signalization Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the acquisition and maintenance of traffic signals.
Capital Golf Fund - This fund is used to offset the cost of capital improvements, equipment purchases,
perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of
Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are
collections from the IROC and Standard Vacation Ownership, Inc. time-share project.
Buildings 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
151
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2017
Capital Parks and
Projects Drainage Economic Recreation
Reserve Facilities Development Facilities
ASSETS:
Pooled cash and investments 5 3,096.280 $ 2.033,528 $ 665,480 $ 84,337
Receivables:
Interest 1,248.014 - - 743,340
Prepaid casts - _ - -
-
Due from other governments 16.062 _
Due from other funds
Restricted assets:
Cash and investments with fiscal agents - - - -
Advances to Successor Agency 8.000.000 - 4.765.000
TOTAL ASSETS $ 12,360,356 $ 2,033,528 $ 665,480 $ 5,592,677
LIABILITIES:
Accounts payable $ 125,111 $ - $ - $ -
Accrued liabilities
Unearned revenues 63.041 -
Deposits payable - - - _
Due to other funds 1,600.000 - - 953.000
TOTAL LIABILITIES 1,788,152 - 953,000
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 1.248.00D - - 743,340
FUND BALANCES.
Nonspendahle:
Prepaid costs - _ -
Restricted for:
Capital Projects -
Special programs _ - _ -
Assigned to:
Capital projects 8.783,891 - _ -
Property acquisition 420,387 - - -
Public facilities - - 665,480 3.896.337
Special programs _ - - -
Street related purposes 119,926 2.033,528 - .
TOTAL FUND BALANCES 9,324,204 2,033,528 665,480 3,896,337
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 12,360,356 S 2,033,528 $ 665,480 $ 5,592.677
152
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2017 (CONTINUED)
Arts in Public
Places Signalization Capital Golf Buildings
ASSETS:
Pooled cash and investments $ 1,591,182 $ 102.343 $ 2,411,164 $ 3,660.883
Receivables:
Interest - - 14.959 -
Prepaid costs 100 - - -
Due from other governments - - - -
Due from other funds - - 500.000
Restricted assets:
Cash and investments with fiscal agents - - - -
Advances to Successor Agency - - - -
TOTAL ASSETS $ 1,591,282 $ 102,343 $ 2,926,123 $ 3,660,883
LIABILITIES:
Accounts payable $ 3,719 $ - $ 18.981 $ 22.538
Accrued liabilities 4,278 - - -
Unearned revenues - - -
Deposits payable 134,930 - - -
Due to other funds - - - -
TOTAL LIABILITIES 142,927 - 18,981 22,538
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - -
FUND BALANCES:
Nonspendable:
Prepaid casts 100 - - -
Restricted for:
Capital Projects - - - -
Special programs 1,448.255 - - -
Assigned to:
Capital projects - - - -
Property acquisition - - - -
Public facilities - - 2,907,142 3,638,345
Special programs - - - -
Street related purposes - 102,343 - -
TOTAL FUND BALANCES 1,448,355 102,343 2,907,142 3,638,345
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,591,282 $ 102,343 $ 2,926,123 $ 3,660,883
153
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2017
Assessment
District No.94- Silver Spur Highlands
Library 3 Merano Ranch Undergrounding
ASSETS:
Pooled cash and investments $ 667,255 $ - 5 556 $ 21
Receivables.
Interest - 114 - -
Prepaid costs -
Due from other governments -
Due from other funds _ •
Restricted assets:
Cash and investments with fiscal agents 180.012 - -
Advances to Successor Agency
TOTAL ASSETS $ 667,255 $ 180,126 5 596 $ 21
LIABILITIES:
Accounts payable 5 - 5 - S -
Accrued liabilities
Unearned revenues _
Deposits payable -
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues -
FUND BALANCES:
Nonspendable:
Prepaid costs -
Restricted for:
Capital Projects - 180,126 596 21
Special programs -
Assigned to:
Capital projects
Property acquisition -
Public facilities
Special programs 667.P55 - - -
Street related purposes
TOTAL FUND BALANCES 667,255 180,126 596 21
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 667,255 $ 180,126 5 596 $ 21
154
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30,2017
CFD
University Total Other
Special Capital Projects
Assessment Assessment 29 Funds
ASSETS:
Pooled cash and investments $ - $ 646 $ 14,313,715
Receivables:
Interest 4184 - 2,010,611
Prepaid costs - - 100
Due from other governments - - 16,062
Due from other funds - - 500,000
Restricted assets:
Cash and investments with fiscal agents 1,818,331 - 1.998.343
Advances to Successor Agency - - 12.765.000
TOTAL ASSETS $ 1,822,515 $ 646 $ 31,603,831
LIABILITIES:
Accounts payable $ - $ - 170.349
Accrued liabilities - - 4.278
Unearned revenues - - 63,041
Deposits payable - - 134.930
Due to other funds - 2.553.000
TOTAL LIABILITIES - - 2,925,598
DEFERRED INFLOWS OF RESOURCES-
Unavailable revenues - - 1,991,340
FUND BALANCES:
Nonspendable:
Prepaid costs - - 100
Restricted for:
Capital Projects 1,822,515 646 2,003,904
Special programs - - 1,448.255
Assigned to:
Capital projects - - 8,783,891
Property acquisition - - 420,387
Public facilities - - 11,107,304
Special programs - - 667,255
Street related purposes - - 2,255,797
TOTAL FUND BALANCES 1,822,515 646 26,686,893
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,822,515 S 646 6 31,603,831
155
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2017
Capital Parks and
Projects Drainage Economic Recreation
Reserve Facilities Development Facilities
REVENUES:
Licenses and permits g - $ - $ - $ -
Intergovernmental revenues 556,163 - 10 -
Investment earnings 16,722 11,472 4,052 475
Miscellaneous - 4,800 - -
TOTAL REVENUES 572,885 16,272 4,062 475
EXPENDITURES:
Current:
General government 29,458 - 5,800 -
Parks,recreation and culture 177,552 - - -
Public works 661.391 25,389 - -
Capital outlay 172,908 - 123,330 -
TOTAL EXPENDITURES 1,041,309 25,389 129,130 -
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (468,424) (9,117) (125,068) 475
OTHER FINANCING SOURCES(USES)
Transfers in -
- - -
Transfers out - - - -
TOTAL OTHER FINANCING
-
SOURCES(USES) - - -
NET CHANGE IN FUND BALANCES (468,424) (9,117) (125,068) 475
FUND BALANCES-BEGINNING OF YEAR 9,792,628 2,042,645 790,548 3,895,862
FUND BALANCES-END OF YEAR $ 9,324,204 $ 2,033,528 $ 665,480 $ 3,895,337
• 156
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2017 (CONTINUED)
Arts in Public
Places Signalization Capital Golf Buildings
REVENUES:
Licenses and permits $ 236,218 $ - $ - $ -
Intergovernmental revenues - - - -
Investment earnings 9,487 577 34,812 18,997
Miscellaneous 40 - 1,745,065 -
TOTAL REVENUES 245,745 577 1,779,877 18,997
EXPENDITURES:
Current:
General government - - - 29,292
Parks,recreation and culture 478,946 - 851,671 -
Public works - - - 11,044
Capital outlay 12,960 - - 57,000
TOTAL EXPENDITURES 491,906 - 851,671 97,336
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (246,161) 577 928,206 (78,339)
OTHER FINANCING SOURCES(USES)
Transfers in 7,929 - - 350,000
Transfers out (7,625) - (1,127,500) -
TOTAL OTHER FINANCING
SOURCES(USES) 304 - (1,127,500) 350,000
NET CHANGE IN FUND BALANCES (245,857) 577 (199,294) 271,661
FUND BALANCES-BEGINNING OF YEAR 1,694,212 101,766 3,106,436 3366,684
FUND BALANCES-END OF YEAR $ 1,448,355 $ 102,343 $ 2,907,142 $ 3,638,345
157
a �
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2017
Assessment
District No.94- Silver Spur Highlands
Library 3 Merano Ranch Undergrounding
REVENUES:
Licenses and permits $ $ - $ - $ -
Intergovernmental revenues
Investment earnings _ 809 3 _
Miscellaneous _
TOTAL REVENUES - 809 3 -
EXPENDITURES:
Current:
General government -
Parks,recreation and culture
Public works -
Capital outlay - -
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES - 809 3
OTHER FINANCING SOURCES(USES)
Transfers in
Transfers out -
TOTAL OTHER FINANCING
SOURCES(USES)
NET CHANGE IN FUND BALANCES - 809 3 -
FUND BALANCES-BEGINNING OF YEAR 667,255 179,317 593 21
FUND BALANCES-END OF YEAR $ 667,255 5 180,126 $ 596 $ 21
158
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2017
CFD
University
Special Total Other
Assessment Assessment Capital
❑istrict 29 Projects Fund
REVENUES:
Licenses and permits S - S - $ 236,218
Intergovernmental revenues - - 556,173
Investment earnings 10.451 3 107,860
Miscellaneous - - 1,749,905
TOTAL REVENUES 10,451 3 2,650,156
EXPENDITURES:
Current:
General government - - 64,550
Parks,recreation and culture - - 1,508,169
Public works - - 697,824
Capital outlay - - 366,198
TOTAL EXPENDITURES - - 2,636,741
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 10,451 3 13,415
OTHER FINANCING SOURCES(USES)
Transfers in - - 357,929
Transfers out - - (1,135,125)
TOTAL OTHER FINANCING
SOURCES(USES) - - (777,196)
NET CHANGE IN FUND BALANCES 10,451 3 (763,781)
FUND BALANCES-BEGINNING OF YEAR 1,812,064 643 27,450,674
FUND BALANCES-END OF YEAR $ 1,822,515 $ 646 $ 26,686,893
159
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROPERTIES
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $65,711,729 $65,711,729 $65,711.729 S -
Resources (Inflows):
Investment earnings - - 429,769 429,769
Contributions - - 3,550,991 3,550,991
Amounts Available for Appropriations 65,711,729 65,711,729 69,692,489 3,980.760
Charges to Appropriation (Outflow):
Public works - 540,600 540,451 149
Total Charges to Appropriations - 540,600 540,451 149
Budgetary Fund Balance,June 30 $65,711,729 $65,171,129 $69,152,038 $ 3,980,909
160 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS RESERVE
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 9,792,628 $ 9,792,628 $ 9,792,628 $ -
Resources(Inflows):
Intergovernmental 2,620,000 2,620,000 555,163 (2,063,837)
Investment earnings 6,000 6,000 16,722 10,722
Amounts Available for Appropriations 12,418,628 12,418,628 10,365,513 (2,053,115)
Charges to Appropriation (Outflow):
General government - 24,794 29,458 (4,664)
Parks, recreation and culture 110,500 242,820 177,552 65,268
Public works 15,000 869,241 661,391 207,850
Capital outlay 382,500 4,729,453 172,908 4,556,545
Total Charges to Appropriations 508,000 5,866,308 1,041,309 4,824,999
Budgetary Fund Balance,June 30 $11,910,628 $ 6,552,320 $ 9,324,204 $ 2,771,884
161
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
DRAINAGE FACILITIES
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,042,645 S 2,042,645 $ 2,042,645 $ -
Resources (Inflows):
Investment earnings 4,000 4,000 11,472 7,472
Miscellaneous -_ - 4,800 4,800
Amounts Available for Appropriations 2,046,645_ 2,046,645 2,058,917 12,272
Charges to Appropriation (Outflow):
Public works 100,000 501,681 25.389 476,292
Capital outlay 325,000 40,000 - 40,000
Total Charges to Appropriations 425,000 541,681 25,389 516,292
Budgetary Fund Balance,June 30 $1,621,645 $ 1,504,964 $ 2,033,528 S 528,564
162
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ECONOMIC DEVELOPMENT
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 790,548 $ 790,548 $ 790,548 $ -
Resources (Inflows):
Intergovernmental - - 10 10
Investment earnings 3,000 3,000 4,052 1,052
Amounts Available for Appropriations 793,548 793,548 794,610 1,062
Charges to Appropriation (Outflow):
General government 200,000 623,620 5,800 617,820
Capital outlay - 125,830 123,330 2,500
Total Charges to Appropriations 200,000 749,450 129,130 620,320
Budgetary Fund Balance,June 30 $ 593,548 $ 44,098 $ 665,480 $ 621,382
163
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION FACILITIES
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $3,895,862 $ 3,895,862 $ 3,895,862 $ -
Resources (Inflows):
Investment earnings 500 500 475 (25)
Amounts Available for Appropriations 3,896,362 3,896,362 3,896,337 (25)
Charges to Appropriation(Outflow):
Parks, recreation and culture 142,000 147,757 - 147,757
Total Charges to Appropriations 142,000 147,757 - 147,757
Budgetary Fund Balance,June 30 $3,754,362 $ 3,748,605 $ 3,896,337 $ 147,732
164
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ARTS IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance,July 1 $1,694,212 $ 1,694,212 $ 1,694,212 $ -
Resources (Inflows):
Licenses and permits 184,100 184,100 236,218 52,118
Investment earnings 2,500 2,500 9,487 6,987
Miscellaneous - - 40 40
Transfers in 80,000 80,000 7,929 (72,071)
Amounts Available for Appropriations 1,960,812 1,960,812 1,947,886 (12,926)
Charges to Appropriation(Outflow):
Parks, recreation and culture 485,016 487,365 478,946 8,419
Capital outlay 35,500 35,500 12,960 22,540
Transfers out - - 7,625 (7,625)
Total Charges to Appropriations 520,516 522,865 499,531 23,334
Budgetary Fund Balance,June 30 $1,440,296 $ 1,437,947 $ 1,448,355 $ 10,408
165
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
SIGNALIZATION
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original _ Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 101,766 $ 101,766 $ 101,766 $ -
Resources(Inflows):
Investment earnings 250 250 577 327
Amounts Available for Appropriations 102,016 102,016 102,343 327
Charges to Appropriation (Outflow):
Capital outlay - 35,000 - 35,000
Total Charges to Appropriations - 35,000 - 35,000
Budgetary Fund Balance,June 30 $ 102,016 $ 67,016 $ 102,343 $ 35,327
166
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL GOLF
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $3,106,436 $ 3,106,436 $ 3,106,436 $ -
Resources (Inflows):
lnvestment earnings 30,000 30,000 34,812 4,812
Miscellaneous 1,674,975 _ 1,674,975 1,745,065 70,090
Amounts Available for Appropriations 4,811,411 4,811,411 4,886,313 74,902
Charges to Appropriation (Outflow):
Parks, recreation and culture 799,500 1,177,752 851,671 326,081
Transfers out 1,127,500 1,127,500 1,127,500 -
Total Charges to Appropriations 1,927,000 2,305,252 1,979,171 326,081
Budgetary Fund Balance,June 30 $2,884,411 $ 2,506,159 $ 2,907,142 $ 400,983
167
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
BUILDINGS
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts {Negative}
Budgetary Fund Balance, July 1 S 3,366,684 $ 3,366,684 S 3,366.684 $ -
Resources (Inflows):
Investment earnings 9.000 9.000 18,997 9.997
Transfers in - 350,000 350,000 -
Amounts Available for Appropriations 3,375.684 3,725,684 3,735,681 9,997
Charges to Appropriation (Outflow):
General government 47,000 227,000 29,292 197,708
Public works 34,000 34,000 11.044 22,956
Capital outlay 102.500 171,126 57,000 114,126
Total Charges to Appropriations 183,500 432,126 97,336 334,790
Budgetary Fund Balance,June 30 $3,192,184 S 3,293,558 $ 3,638,345 $ 344,787
168
OTHER GOVERNMENTAL FUNDS—DEBT SERVICE FUND
City Highlands Undergrounding Fund —This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
169
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
JUNE 30,2017
City Highland Total Other Debt
Undergrounding Service Fund
ASSETS:
Pooled cash and investments $ 194,949 $ 194,949
Receivables
Assessments 1.268.926 1,268,926
Due from other governments 5,937 5,937
TOTAL ASSETS $ 1,469,812 $ 1,469,812
LIABILITIES:
Accounts payable $ 1,633 $ 1,633
Deposits payable 109,526 109,526
TOTAL LIABILITIES 111,159 111,159
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 1,268,926 1,268,926
FUND BALANCES:
Restricted for:
Debt service 89,727 89,727
TOTAL FUND BALANCES 89,727 89,727
TOTAL LIABILITIES,DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,469,812 $ 1,469,812
170
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2017
City Total Other
Highlands Debt Service
Undergrounding Fund
REVENUES:
Special assessments collected $ 132,355 $ 132,355
investment earnings 798 798
TOTAL REVENUES 133,153 133,153
EXPENDITURES
Current:
General government 19,506 19,506
Debt service
Principal retirement 41,000 41,000
Interest and fiscal charges 72,994 72,994
TOTAL EXPENDITURES 133,500 133,500
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (347) (347)
FUND BALANCES-BEGINNING OF YEAR 90,074 90,074
FUND BALANCES-END OF YEAR $ 89,727 $ 89,727
171
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CITY HIGHLAND UNDERGROUNDING
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 90,074 $ 90,074 $ 90,074 $ -
Resources (Inflows):
Assessments 134,711 134,711 132,355 (2,356)
Investment earnings 200 200 798 598
Amounts Available for Appropriations _ 224,985 224,986 223,227 (1,758)
Charges to Appropriation(Outflow):
General government 21,720 21,720 19,50E 2,214
Debt service:
Principal retirement 41,000 41,000 41,000 -
Interest and fiscal charges 72,994 72,994 72,994 -
Total Charges to Appropriations 135,714 135,714 133,500 2,214
Budgetary Fund Balance,June 30 $ 89,271 $ 89,271 $ 89,727 $ 456
172 •
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for services provided to other departments or agencies of the
City on a cost reimbursement basis.
Equipment Replacement -- This fund is used to account for financial transactions related to replacement
of City-owned vehicles and equipment.
Compensation Benefits Fund—This fund is used to account for funding of compensated absences.
173
CITY OF PALM DESERT
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2017
Equipment Compensation
Replacement Benefits Total
ASSETS:
CURRENT ASSETS:
Cash and investments $ 9,048,592 $ 2,604.746 $ 11,653,338
Receivables:
Prepaid costs 23,680 - 23.680
TOTAL CURRENT ASSETS 9,072,272 2,604,746 11,677,018
CAPITAL ASSETS:
Nondepreciable 130.668 - 130,668
Depreciable,net 1.981.328 - 1,981,328
CAPITAL ASSETS,NET 2,111,996 - 2,111,996
TOTAL ASSETS $ 11,184,268 $ 2,604,746 $ 13,789,014
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable S 16,408 $ - $ 16,408
Compensated absences - 300,000 300,000
TOTAL CURRENT LIABILITIES 16,408 300,000 316,408
NONCURRENT LIABILITIES:
Compensated absences - 2,283,719 2.283,719
TOTAL NONCURRENT LIABILITIES: - 2,283,719 2,283,719
TOTAL LIABILITIES 16,408 2,583,719 2,600,127
NET POSITION:
Invested in capital assets 2,111,996 - 2,111,996
Unrestricted 9,055,864 21,027 9,076,891
TOTAL NET POSITION $ 11,167,860 $ 21,027 $ 11,188,887
174
CITY OF PALM ❑ESERT
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2017
Equipment Compensation
Replacement Benefits Total
OPERATING EXPENSES:
General and administrative $ - $ 243.798 $ 243,798
Maintenance and operations 20,358 - 20,358
Depreciation and amortization 320,873 - 320,873
TOTAL OPERATING EXPENSES 341,231 243,798 585,029
OPERATING LOSS (341,231) (243,798) (585,029)
NONOPERATING REVENUES:
Interest revenue 36,682 19,857 56,539
Contributions 30,203 - 30,203
Gain on disposal of capital assets 2,145 - 2,145
TOTAL NONOPERATING REVENUES 69,030 19,857 88,887
LOSS BEFORE TRANSFERS (272,201) (223,941) (496,142)
TRANSFERS IN 2,867,700 243.840 3,111,540
CHANGE IN NET POSITION 2.595,499 19,899 2,615,398
NET POSITION-BEGINNING OF YEAR 8.572,361 1.128 8,573,489
NET POSITION-END OF YEAR $ 11,167,860 $ 21,027 $ 11,188,887
175
CITY OF PALM DESERT
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2017
Equipment Compensation
Replacement Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 4,560 $ - $ 4,560
Payments to suppliers (27,630) - (27.630)
Cash paid to employees for services - (73.744) (73.744)
NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES (23,070) (73,744) (96,814)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds 2.867.700 243,840 3.111.540
NET CASH PROVIDED(USED)BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES 2,867,700 243,840 3,111,540
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (472,720) - (472,720)
Proceeds from sales of assets 2.145 - 2.145
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (470,575) - (470,575)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 36.682 19.857 56.539
NET INCREASE(DECREASE)IN
CASH AND CASH EQUIVALENTS 2,410,737 189,953 2,600,690
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 6.637.855 2.414.793 9.052.648
CASH AND CASH EQUIVALENTS- $ 9,048,592 $ 2,604,746 $11,653,338
END OF YEAR
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH PROVIDED(USED)BY
❑PERATING ACTIVITIES:
Operating income(lass) $ (341,231) $ (243,798) S (585.029)
Adjustments to reconcile operating loss to net
cash provided(used)by operating activities:
Depreciation and amortization 320,873 - 320.873
(Increase)decrease in accounts receivable 4.560 - 4.560
(Increase)decrease in prepaid expense (23.680) - (23.680)
Increase(decrease)in accounts payable 16.408 - 16,408
Increase(decrease)in compensated absences - 170.054 170.054
Total Adjustments 318,161 170,054 488,215
NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES $ (23,070) $ (73,744) $ (96,814)
NONCASH ITEMS:
Capital Contributions $ 30,203 $ - 5 30,203
176
AGENCY FUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Agency 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.
177
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178
CITY OF PALM DESERT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
JUNE 30,2017
Retiree Special
Treasurers Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
Assets:
Pooled cash and investments $ 3,092,350 $ 270,664 $ 2,278,600 $ 8,311,961 $ 13,953,575
Receivables:
Assessments - - - 57,387,797 57,387,797
Accrued interest - - - 7,685 7,685
Due from other governments 47,703 - - 310,849 358,552
Restricted assets:
Cash and investments with fiscal agents - - 5,454,155 5,454,155
Total Assets $ 3,140,053 $ 270,664 $ 2,278,600 $ 71,472,447 $ 77,161,764
Liabilities:
Deposits payable $ 3,140,053 $ 270,664 $ 2,278,600 $ 71,472,447 $ 77,161,764
Total Liabilities $ 3,140,053 $ 270,664 $ 2,278,600 $ 71,472,447 $ 77,161,764
179
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2017
Balance Balance
7/1/2016 Additions Deductions 6/30/2017
AGENCY
ASSETS:
Pooled cash and investments $ 2,853.204 $ 3,934,476 $ 3,695,330 $ 3,092,350
Due from other governments - 47,703 - 47,703
TOTAL ASSETS $ 2,853,204 $ 3,982,179 $ 3,695,330 $ 3,140,053
LIABILITIES:
Deposits $ 2.853,204 $ 3,982,179 $ 3,695,330 $ 3,140,053
TOTAL LIABILITIES $ 2,853,204 $ 3,982,179 $ 3,595,330 $ 3,140,053
TREASURERS 1911 BOND ACT
ASSETS:
Pooled cash and investments $ 270,664 $ - $ - $ 270,664
TOTAL ASSETS $ 270,664 $ $ - $ 270,664
LIABILITIES:
Deposits payable $ 270,664 $ - $ - $ 270,664
TOTAL LIABILITIES $ 270,664 $ - $ - $ 270,664
RETIREE SERVICES STIPEND FUND
ASSETS:
Pooled cash and investments $ 2,186,748 $ 1,231,651 $ 1,139,799 $ 2,278,600
TOTAL ASSETS $ 2,186,748 $ 1,231,651 $ 1,139,799 $ 2,278,600
LIABILITIES:
Deposits payable $ 2,186,748 $ 1,231,651 S 1,139,799 $ 2,278,600
TOTAL LIABILITIES $ 2,186,748 $ 1,231,651 $ 1,139,799 $ 2,278,600
• 180
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AN❑ LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2017
Balance Balance
7/1/2016 Additions Deductions 6/30/2017
SPECIAL ASSESSMENT FUNDS
ASSETS:
Pooled cash and investments $ 9,510.134 $ 6.221,560 $ 7.419,733 $ 8,311,961
Receivables:
Assessments 60,437.964 - 3,050,167 57,387,797
Accrued interest 4.114 8,129 4.558 7,685
Prepaid costs 812 - 812 -
Due from other governments 59.982 310,849 59.982 310,849
Restricted assets:
Cash and investments with fiscal agents 5.466.224 29,801 41.870 5.454.155
TOTAL ASSETS $ 75,479,230 $ 6,670,339 $ 10,577,122 $ 71,472,447
LIABILITIES:
Deposits payable $ 75,479,230 $ 6.570,339 $ 10.577.122 $ 71.472,447
TOTAL LIABILITIES $ 75,479,230 $ 6,570,339 $ 10,577,122 $ 71,472,447
TOTAL-ALL AGENCY FUNDS
ASSETS:
Pooled cash and investments $ 14.820,750 $ 11,387,687 $ 12,254.862 $ 13.953,575
Receivables:
Assessments 60.437,964 - 3,050.167 57,387.797
Accrued interest 4,114 8.129 4,558 7,685
Prepaid costs 812 - 812 -
Due from other governments 59,982 358,552 59.982 358,552
Restricted assets:
Cash and investments with fiscal agents 5.466,224 29,801 41.870 5,454,155
TOTAL ASSETS $ 80,789,846 $ 11,784,169 $ 15,412,251 $ 77,161,764
LIABILITIES:
❑eposits payable 80.789.846 11,784.169 15.412,251 77,161,764
TOTAL LIABILITIES $ 80,789,846 $ 11,784,169 $ 15,412,251 $ 77,161,764
181
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182 •
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2017
This part of the City of Palm Desert's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures,and required supplementary information say about the city's overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information
These schedules contain 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 GASH Statement 34 in 2001;
schedules presenting government-wide information include information beginning in that year.
183
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184
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2017 2016 2015 2014 MEM
Net Investment in capital assets 449,037,170 459,644,720 473,722,694 466,246,732 465,756,172
Restricted 197,824,604 193,298,431 135,900,520 140,460,575 132,741.798
Unrestricted 87,091.894 78,812,066 71,530,456 105.537,785 103,603,715
Total Governmental Activities Net Position 733,953,668 731,755,217 14) 681,153,670 t31 712,245,092 702,101,685
Business-Type Activities
Net Investment in capital assets 69,829,772 70,202,487 71,129,743 72,009,184 72,892.200
Restricted - - - - -
Unrestricted 4,829,456 4,479,575 4,302,958 3,920,382 3,682,061
Total Business-type Activities Net Position 74,659,228 74,682,062 75,432,701 75,929,566 76,574,261
Primary Government t
Net Investment in capital assets - 518,866,942 529,847,207 544,852,437 538,255,916 538,648,372
Restricted 197,824,604 193,298,431 135,900,520 140,460,575 132,741,798
Unrestricted 91,921,350 83,291,641 75,833,414 109,458,167 107,285,776
Total Primary Government Net Position 808,612,896 806,437,279 756,586,371 788,174,658 778,675,946
Governmental Activities 2012 2011 2010 2009 2008
Net Investment in capital assets 475,457,375 302,757,128 304,702,414 302,507,877 287,536,477
Restricted 119,736,419 147,648,424 143,394,780 159,157,317 161,360,654
Unrestricted 107,622,257 107,314,002 110,918,145 113,883,303 120,089,399
Total Governmental Activities Net Position 702,816,051 pi 557,719,554 559,015,339 575,548,497 568,986,530 tii
Business-Type Activities
Net Investment in capital assets 73,375,634 74,043,419 67,902,786 68,263,719 62,814,656
Restricted - - - - -
Unrestricted 3,901,816 4,068,623 4,391,160 4,686,899 5,211,985
Total Business-type Activities Net Position 77,277,450 78,112,042 72,293,946 72,950,618 68,026,641
Primary Government
Net Investment in capital assets 548,833,009 376,800,547 372,605,200 370,771,596 350,351,133
Restricted 119,736,419 147,648,424 143,394,780 159,157,317 161,360,654
Unrestricted 111,524,073 111,382,625 115,309,305 118,570,202 125,301,384
'Total Primary Government Net Position 780,093,501 635,831,596 631,309,285 648,499,115 637,013,171
(1)Die trnreasc•fur FY 2008 is due to Capital Contribution of Hwy 111,.Hwy 74 infrasiructare totaling 530.19 million from the State of('allfiirnia.
(2)On February 1,2012 the State of California dissolved the City of Palm Desert Redevelopment Agency to parr IV-the Statewide dissolution of all
City Redevelopment Agencies,which in turn crewed the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
(3)The implementation of GASB Statement No.68 and Statement No.71 resulted in a prior year restatement decrease of S37.73 million in the
governmental activities net pacitons.
(4)The C'ity'.s ('apical Properties Capital Project Fund received S65,566,963 arid the Housing Asset Fund received 56.571.706 for a combined total of
572,138.669 of capital bond proceeds transferred from the Successor Agency,See Note 19.
185
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses 2017 2016 2015 2014 73
1
Governmental Activities:
General government 15,708,054 14.836.881 16.337.393 19,194,343 16,375,295
Public safety 34.943.220 34,009,984 32.077,635 29.339,106 28,614,153
using&Redevelopment (1) 10.954.630 8,162,859 11,868,724 7.852,611 6,944,033
rks,recreation and culture 9,850,200 9.223,128 8,598.242 8,327,402 8,752,823
Public works 14,892,145 47.044,197 19,144.213 21,123,197 16,318,237
Payments to other agencies -, -
Interest on long term debt 271.603 289,000 294.258 237.053 253,381
Total Governmental activities Expenses 86,619,852 113,566,047 88,118,465 86,073,712 77,255,722
Business-Type Activities:
Desert Wllow Golf Course 411"18,243,515 8,185,183 8.433,287 8,452.001 8.855,754
Office Complex•Parkview 893.125 1,005.918 934,296 922,341 984.811
Total Business-Type Activities 9.136.640 9,171,101 9.387,583 9.374.342 9.640.565
Total primary government expenses 95,758,492 122,737,148 97,496,028 95,448,054 86,896,287
Program Revenues
Governmental Activities _ _
Charges for services
General government 2,095.848 2,185.123 2,088,393 2,152,280 1.833.823
Housing&Redevelopment 6.861,450 7,029,595 7,971.265 6,851,603 5,308,858
Public safety 10,603,708 10.606.464 9,987,891 10,239,886 11,147,297
Parks,recreation and culture 793,527 772.801 772,728 729.076 898.222
Public works 2,327,521 2,186,153 1,832,241 2,180.877 768.775
Operating grants&contributions 7.931,900 9,496,520 7,512,894 9,745.609 5,876,028
Capital grants&contributions 7,710,355 10.839.715 19,297,075 21,088,051 7,733,439
Total Governmental Activities Program Revenues 38,324,109 43,116,371 49,462,427 52,985,382 33,566,442
Business-Type Activities
Charges for Service:
Desert Wtltow Golf Course 7.497,664 7.240,866 7.894,678 7.804.904 7,494,819
Office Complex-Parkview 1.284.462 1,280230 1,306.042 1.254621 1,215,880
Capital grants 8 contributions 605.186 111.942 47.768 94.076 660685
Total Business-type activities program revenue 9.387.312 8.633.038 9.248.486 9.153.501 9.371,3(34
Total Primary Government program revenue 47.711,421 51,749.409 58,710,913 62,138,883 42,937,806
Net(Expense)/Revenue �' "�
Governmental activities (48.295,743) (70,449,676) (38,65fi,038) (33,088,330] {43,689,28D]
Business-type activities 250.672 [538,D63y (119,077y [220,841] (269,201)
(33,SD9,171] (43,958,481]
47,828,454 44.747,151 41.931,997 39.952,738 38,742,060
Total Primary Government Net Expense (48,045,071) (70,987,739) (38,775,115)
General Revenues&Other Changes in Net Position
Governmental Activities:
Taxes:(Combined/Nil Pass-through)
Investment Earnings 1,041,232 2,074,934 494,452 358,874 318,996
Contributions not restricted for specific purpose
.amil
Gain(loss)on sales of capital assets 2,145 24.292 11,720 488,319
rvtiscellaneaus 1,522,383 1,828.677 1,726,007 1,994,506 3.894.203
Refunding of special assessment debl - _ _ •
Transfers In/(Out) 300,000 237,500 437,500 437,500 437,500
I
Gain on Transfer to Successor Agency/Extraordinary Gain(4) - 72,138.689
Total Governmental activities Net Revenues 50,494,194 121,051,223 44,601,675 43,231,737 43,392,759
Business-Type Activities: •
Investment Earnings 26,494 24.924 11,774 13.646 3,512
Gain(loss)on sales of capital assets 'oil - - 47,938
Transfers Out (300.000) (237.500) (437.500) (437500) (437.500)
Total Business-type activities (273.506) (212,576) (377.788) (423.854) (433,988)
, Total primary government 50,220,688 120,838,647 44,223,888 42,807,883 42,958,771
Change in Net Position
mmental Activities: 2,198,451 50,601.547 5.945,838 10,1434407 (296.521)
ss-Type Activities: (22.834) (750.639) (496.865) (644.695) [703.1891
a ovem 2,175,617 49,850,908 5,448,773 9,498,712 (999,710)
(lJGry has changed the manner in which if reports RDA expendNures.RDA and Housing expenditures are being repined muter"Housing&lfedeerlopmem"
(2)Required payment wee/a k+the State of California.For FY 2010 was 523,326,215 and F Y 2011 leas 55.255.397.
(3)On February 1.20/2 the State of California dissolved the City of Palm Ikrsert Redevelopment Agency as pare of the Statewide drssolurmn grail
City Redevelopment Agencies.which in rum created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
sal The f'ily's Capital Pmpernes Capital Project Fund received 565.566,963 and the Housing Asset Fund received S6,571.706for a rumrined rota/of
572.l3n.669 ofcapnal hand proceeds tramferied from the Successor Agency.See Note 19.
186
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses 20, l
Governmental Activities- -
General government 17.387,080 17,182.987 16,701„292 17,328,291 21.953,229
Public safety 28.037,453 26,601.688 27,027,643 27.670,237 26,655,066
Housing&Redevelopment (11 10,519,663 15,976,383 16,220,066 16,760,877 24,095.414
Parks,recreation and culture 6,033,019 7,337,403 7,312,679 7,210,706 8,013,211
Public works 17,407,751 16,984,334 19,900,937 22,038,017 27,245.937
Payments to other agencies 16.994,265 39,418,936 63.320,650 39,085,940 38,993,445
Interest on long term debt 10,971.707 18,989,167 20,069,813 20,128,441 20,706,514
Total Governmental Activities Expenses 107,350,938 142,490,878 170,553,080 150,220,509 157,852,810
Business-Type Activities: • - . "`
Desert Wdtow Golf Course 8,471,587 7.946.063 7.832,690 7,804,265 8,167,662
Office Complex-Parkview 1,031,178 861.786 875,394 852,746 649,548
Total Business-Type Activities 9.502.745 8.807.849 8,708,084 8,657,011 8,817,230
Total primary government expenses 116,853,683 151,298,727 179,261,164 158,577,520 176,680,040
Program Revenues -
Governmental Activities
Charges for services
General government 1,805,442 1,921,573 2.127.138 7,574,059 8,454,683
Housing&Redevelopment 5,034,002 4,935,422 4,986,056 - -
Public safety 9,041,801 9.825,352 9.431.478 9.396,435 8,808,300
Parks,recreation and culture 728,721 768,788 618,440 803,218 1,190,725
Public works 826,251 762,015 706,374 701,125 762,440
Operating grants&contributions 7,411,902 5,675,777 6,558,892 5,582,470 5,843,010
Capital grants&contributions 2,309,678 2.255.393 2,722.312 5,048.666 42,545,033
Total Governmental Activities Program Revenues 27,157,797 25,144,318 27,150,700 29,105,973 67,604,191
Business-Type Activities _
Charges for Service: _
Desert Willow Golf Course 7.6'35.352 7,338,640 7,054,263 6,872,935 8,182,741
Office Complex-Perkview 1,222,971 1,217,985 988,056 958,942 934,833
Capital grants&contributions 236,419 - - - 206,609
Total Business-type activities program revenue _ 9,094.742 8,556,625 8.042.319 7.831,877 9.324.183
Total Primary Government program revenue 36,252,539 34,700,943 35,193,019 36,937,850 76,928,374
Net(expense)/Revenue
Governmental Activities (80,193,141) (116,346,560) (143,402,380) (121,114,536) (100,258,619)
Business-type activities (408,003) (251,224) (665,765) (825,134) 506.953
Total Primary Government Net Expense (80,601,144) (116,597,764) (144,066,145) (121,939,670) {99,751,666)
General Revenues&Other Changes in Net Position
Governmental Activities:
Taxes:(Combined/Net Pass-through) 73,105,814 114,880,586 120,872,421 123,650,887 129,521,410
Investment Earnings 1,102,309 2,158,556 2,916,753 6,161,309 15,309,271
Contributions not restricted for specific purpose 791,256 762,588 644,603 613,648 7,240,770
Gain(loss)on sales of assets - - - - -
Miscellaneous 5,838,881 3,169,977 2,382,208 2,912,180 6,389,028
Refunding of special assessment debt - - - - -
Transfers In!(Out) 440,000 (6,046,761) 53.237 (5,661,521) 1,000,000
Gain on Transfer to Successor Agency/Extraordinary Gain(4) 144,011.578 -
Total Governmental Activities Net Revenues 225,289,638 114,924,946 126,869,222 127,676,503 159,440,479
Business-Type Activities'
Investment Earnings 13,411 22,559 62,330 87.590 267.767
Transfers Out (440,000) 6,046.761 (53237) 5.661,521 (1.060.000)
Total Business-type activities (426,589) 6.069.320 9.093 5.749,111 (732.203)
Total primary government 224,863,049 120,994,266 126,878,315 133,425,614 158,708,276
Change In Net Position " 1/'--" . - _
Governmental Activities: 145,096,497 (1,421,614) (16,533.158) 6.561,967 59,181,860
Business-Type Activities: (834.592) 5,818,096 (656.672) 4,923.977 (225,250)
Total lime overnment 144,261,905 4,396,482 (17,189,830) 11,485,944 58,956,610
(1JCily has charged the manner in which it reports RDA expenditures.RDA and Housing expenJuures are being reported uncler'Housing&Redevelopment"
(2)Required payment made to the State ofCalrforma.For F'Y 2010 was S25,524.213 and FY 201!ii'0.4 33,255,397-
(3)On February F.2012 the Stale of California dissolved the City of Palm Desert Redevelopment Agency as port oldie Statewide dissolution of all
City Redevelopment Agencies,which in turn created the Sunxccor Agency to the Redevelopment Agency of the City of Palm Desert.
(7)The City's Capital Properties Capital Project Fund rec'eiisdS65,366,963 and the Housing Asset Fund received 86,571,706 for a crunhined total of
S7 134,664 of capita(bond proceeds transferred front the Successor Agency.See Note 19.
187 •
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188
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund; 2017 2061111.1111
Nonspendable 9,067,979 9.528.630 10.312,261 7,745.320 7,678,250
Restricted - - - - -
Committed - - - - -
Assigned 1 658,817 991,853 1.771,278 4,425,423 3,224,761
Unassigned 'I 74,259,748 71,842,172 67.727,130 66,203,203 65,311.919
Total General Fund 83,986,544 82,362,655 79,810,669 78,373,946 76,214,930
All other Governmental Funds: •
Nonspendable 1,276 3,052 348 6,713 (5) 49,319.200
Restricted - 171,044,474 165,411,544 (5) 106,261.212 114,194,435 (5) 76,725,388
Committed 16,771,055 16,873,834 16,952,887 21,644,068 15,649,703
Assigned 11111 23,250,337 23,776,468 24,172.531 24,429.824 14,144,969
Unassigned - - - - -
Total all other Governmental Funds 211,067,142 206,064,898 147,386,978 160,275,040 155,839,260
General Fund: 2012 2011 ' ,2g1p_-, -, 2009 .. 2008 ,M
Nonspendable 2,926,739 2,939,850 it) 9,676,961 (1) 11,629,384 11,897,843
Restricted .1 - - - - -
Committed - - - - -
Assigned 3,297,152 4.501,159 4,044,421 3,654,300 4.406,391
Unassigned 69,438.971 66.776,414 63,847,586 59,066,988 63,515,054
Total General Fund 75,662,862 74,217,423 77,568,968 74,350,672 79,819,288
All other Governmental Funds:
Nonspendable 39,525,247 40,925,918 41,050,481 23,361,744 23,141,729
Restricted 69,065,451 230,623,054 260,163,043 296,323,735 299,960,611
Committed 20,289,309 17,285,733 0) 8.871,910 01 4,559,739 t21 18,487 (2)
Assigned 17,552,726 19,375,999 16.432,292 23,812,325 26,512.084
Unassigned - - - (2,392) -
Total all other Governmental 146,432,733 (4)1 308,210,704 (41 326,517,726 (4) 348,055,151 349,632,911
(1)RDA made payment on advances from the city.
(2)Start of new Energy program that loaned residents fends far energy efficiency.
(3)Housing Asset fund transfer for Capital Asset replacement to the Housing Authority.
(4)On February 1,2012 the State of-California dissolved the C'try 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.
(3)Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds.
(r)The(:ity's Capita!Properties Capital Project Fund received S65,566,963 and the Housing Asset Fund received S6,571.706 fora combined
total of 572,138,669 of capital bond prnccedc transferred from the Successor Agency.See Note/9.
189
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(7.rindifrctil Accrual Basis of Accounting)
Revenues: -
e .
Taxes --- - - -— '- - 59,406645 56,735,503 52,571,389 50,464,511 50.768,200
Special assessments collected 3.316114 3,296,705 3656.766 3,486,220 3,854.337
Licen5e54.permits - - • 1,676709 2,057,843 1.757250 2,262.907 1,686,796
In4ergovemmentat revenues 7,249,515 15429238 18,981,304 7.380,744 5,097,892
Rental income 6439.458 5,296,480 5,680.762 5,626,1350 5,367,630
Charges for services 2.356.363 2,982,843 1.819.464 2,165,020 898222
Investment Eamings . •- 2,016.224 1.837.319 1,242,662 884,853 373,012
Fines&forfeitures 135.276 295,269 224.612 231,768 242,568
Miscellaneous 2.594.433 2,317,499 2,377.923 3,539,552 9.028.698
Contnbufians from other government 3.550.997 - 9,158 16749,218
Conlnbulions from property owners - 7,868 - 420,590 •
Total Revenues • 36,875,631 99,954,567 87,703,280 57,102,233 77,017,355
Expenditures:
General government _ 16,287,293 15,7E13,955 15.467.746 17,070,816 14,028,252
Housing&redevelopment • 9239680 6436849 9,349.021 6.650.178 5.650.266
Pass-Through-agreement • - - - -
Public safety 34,674,416 31.750347 31.819214 29.139,735 28.299.876
Parks.reveatidn&culture _ 7,157,821 6831934 6,236,717 5,803941 6,162,149
Public works - 8,794.894 11.031.584 13,982,388 12.741.764 9,819,591
Contributions to property Owners - 19566,467 49 2.350,187 -
Capital outlay 2,169,035 7,071,738 19.339,987 8.273.822 2,782,676
Debt service.:
Principal retirement 237,000 257,000 4,944,000 674,000 318,000
Inge re st and fiscal charges 277,014 295,336 240,219 242,495 255239
Total Expenditures 78,437,955 101,045,830 100,479,341 50,545,939 67,322,748
Excess(deficiency of Revenues -'
overlunder)expenditures 9.437673 (11,089,263) (12,776,064] 6,246,295 9,694,608
Other financing sources(uses) '
Transfers in 9.406188 6,030.706 6,132,859 4661,551 11,274,539
Transfers out ..- (122184281 (6.075,208) (6971.359) [5,124,051) (11.010.550)
Bond Premiums - - - -
Bonds isaued+Capitai Recreation on bonds - - .
Payment refunded bond escrow agent • - - - -
Extraordinary Gain f(Loss)(2) • 72.138.669 _
Sale of property - 225❑0n 2,163.222 911.001
Total Other financing sources[uses] 12,811,540) 72,319,186 '24,722 IIII.W01 " U3,9891
Net Change In Fund Balance 6.626.133 61.229.9.136 1[1,451,3391 6.534793 9,958.595
07•I, 0 6% 6.4% 1.2'/. 0.9%
Debt service as a percentage of noncapital exp.' •
Revenues: _ 2012 CO 2011 2010 2008„
Taxes • 92.901 921 124612.062 730.655949 134.060,861 14_ 0,331,4 fi1111111 b
Special assessments collected - . i - 3,232.923 3.262,163 31132.549 2,759,444 2,080,791
Licenses 8 pemtils 1.041.834 1.089,543 782.271 1.383,778 1.453177
tergovernmental revenues 6,637.428 7.605.222 8,700,234 9,543,55I 1E1996,892
tat income 5.148,499 9011.205 5,023,770 5650,479 4.789421
8rges for services . - i. . 728,721 701.481 618.440 803.218 1,190,725
stment Earnings 1,469.t42 3,102,649 4681243 13,322,1308 22,592,392
s&forfeitures 278.452 310,840 343,054 315,284 254,857
Itenebus 8,814,924 3.096.689 3,374.309 3,479,370 20,1134,099
Iltribulions from other government -
- -
ntnbulions from property owners - - - -
Total Revenues 101,245,942 148,650 914 157,361,819 165,71•513 211,833,820
Expenditures:
General government 15,051,953 15,273,065 19,294,744 16956675 24,776,786
•
Housing&redevelopment 8.942,097 18.033,576 13.612.720 14359640 38618619
Pa3s-through-agreement 16,994,265 39.418.936 63.320,850 39,085.941 38,993446
Public safety 27.551,113 26,824,434 26,882.787 26,906,723 26.677.743
Parks.recreation 8 wliure 3,685,334 3,045.901 4,534,505 5.122,900 4,572,696
Public works 11,306,021 11,256,499 13,971.797 16,241,963 22636.721
Contributions In property owners - - _ -
•
Capllaloutlay _ 9,575,227 14,205,889 6,333,521 22,346953 52,258,552
Debt service: •
Principal retiremenl 9,032,707 22,914.707 15.250.707 12,770,707 16767.707
Interest and fiscal charges 10.187.765 18,176,454 19,280,517 19,424,623 23,378,564
Total Expenditures 113,128,412 149,949,481 162,451,949 175,219,225 212,377,031
Extess[defxaency of Re veil ue 5
aver(under)exile ndilures t (4,876,570) (21,098,587 r 5,120.129 :,500,512) 30,543,411
Other financing sources[uses]
Transfers in 24,463,724 69,995,597 19.960,402 88,088.870 59.723.636
Transfers out
Bond Premiums (24,013,724) (70,555,597) [59.520,402] (67,649,434) (56,723.636)
Bonds issued1Capilal Recreation on bonds - 6,361600 - -
•
Payment refunded bond escrow agent - . - 2,015,000 1.484.808
Extraordinary Gain I(Loss)(2) (155696962) - _
Sale of property _ • slew
Total Oilier financing {u sources •-,455,96) i5 260,Opp] 6,801,000
Net Change In Fund Balance 160.332.532)1.
[Z1,656,5671 {18319,129} 91.046,376J {28,071,805J
16.6% 26.4% 19.911. 21.1% 16.0%
•I service at 4•:manta..of nonce.itsl ex•:nditures..
(l)On 1:•.bnnnn I.2r.:2 six.Si c uI t 4,:;r."r i,r,)i.,i1 cd ti:,(7ry of Yalm Owen Rednrkpaenr Agency as part of the Smtrrrvde d+.r.r,rhramr Om')
City Redevelopmeei Agr++41r5..8ich rn now created the.Successor A4rnn In the Redevelopment Agency of the ray of Pahe 7)exerr
F Mori infornnam,n on the rhswlrr:ion of the 1117A plea.e sir Nero 17 and iS
(2)77r City's Capital Prq+erar..Capital Proles!.Fund recessed 36S.566.963 and the Hr.+c.rng Asset Fund recened$6.S71.7496 Jura coo hrnrd
trial ofS72.138.669 o/rop of hoodprucv.•rh transferred from the S'uevn,eer Agenn.See Note 19
• 190
City of Palm Desert
Graphs-Changes in Fund Balances of Governmentals Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Total Revenues
X3eknnn.000 —•-----
UCornhi eJ ixhsr i I I
s2so.Don.00n -
MhtiaoclWwmaaher l21
ftsu,uou,uou -
n h.q.,.crenewl revenuer
$tnO.000.000 -
SSU.WU.WO - ■11.cmca a Milli'
SIP I Jill 1 . 1
A A R A A Fs' A A C 1 ..ta.esd tire.rel A.IflYnNTI]
Total Expenditures
530111.005. 0 -
■Puts miaow.a avlew.
5230.005.50a •
ttPwthnaa rca.ncm
5200.000.000 -
e neheFxpedlues[ii
SISD.WD.DOD • ; ! �CepW Dale.
SIOD.[XlD.DIXI • �P.HIc w.aV[al
SSD.IXII1_IX1D •
: 9VW.WO
fit ....._._ Miami,A r.Nnelepnem
t t t i i i i _ _ i
A/encnitMrCnlXlenl
(I)C ombined Other is a combinaeion of rental income.rnaestmeni earnings,and chargesjorservices.
(2)Miscellaneous Other is a coesbrtdrrion offtnes and.(srrfeiturcs.miscellaneous cnrnnhurssnr front'ether governments.and conrrrhurrrn+.s from ptuperry owner
(3J Debt Expenditures is a soarbinanon of interestfiscal charges atul principal reeirenfeni
(4)Public corks is a combination of public corks and eontribnrroes to properly owners
Note:Graphs excludes Other financing senores and Wes
191 •
City of Palm Desert
Supplemental -Historical General Fund Revenues
(including Transers In)
Last Ten Fiscal Years
FY 2017
Revenue Type:
Sales Tax $ 18,505,449 $ 18,994,779 $ 17,565,134 $ 17,258,958 $ 16.764,808
Transient Occupancy Tax 15,054,259 11,252,997 10,799,680 9,855,509 9,188,981
Property Tax(3) 10,157,813 10,461,595 9,710,990 9,041,428 9,529,018
'
Investment Earnings 644,341 725,015 416,656 405,456 126,206
I ransfer In 1.472,852 1,390,258 2,179,472 1,373,786 2,127,655
Franchises 3.146,702 3,095,873 3,102,431 3.007,215 2,892,805
State Subventions(1)(3) 23,101 59,317 155,049 22,089 26,691
R
Building&Grading Permits 1,247,390 1,216,115 1,279,706 1,695,303 1,206,935
• Reimbursments (4) 1,407,811 1,589,511 1,604,707 1,809,323 1,868,804
Business License Tax 1,1 18,183 1_269,082 1,160.207 1,169.316 1,149,551
Timeshare Mitigation Fee 1,467,028 1,500,683 1,483,158 1,333,586 1,292,859
Plan Check Fees 431,115 592,818 505,370 662,893 500,698
W
Property Transfer Tax 690,975 491.060 558,965 530,556 520.393
Other Revenues(2) 2,185.703 2,189,063 1.713,758 1,932,009 1.961.314
Total General Revenue 5 57,552,722 S 54,828,166 5 52,235,283 $ 50,097,427 $ 49,156,718
,
FY 2012 _ 2011 2010 2009 2008 0
Revenue Type:
Sales Tax S 15,836,953 $ 14,680.578 $ 13,273,793 $ 14,474,933 $ 17,195,743
"Transient Occupancy Tax 8,085,225 7,421,769 6,848,132 7,030,048 8,605,714
^
Property Tax(3) 7,976,494 8,341,728 8,707,567 8,776,917 9,333,842
Investment Earnings 408,661 793,461 1,766,868 2,142,915 4,571,147
^
Transfer In 2,240,703 2,691,634 4,747,672 2,684,568 1,101,610
Franchises 2,856,679 2.771,594 2,705,902 2,818,729 2,887,727
State Subventions(1)(3) 25,759 236,211 151,489 173,448 220,785
Building&Grading Permits 750,442 783.031 575,852 950,805 975,296
Reimbursments (4) 2,535,977 1,971,505 2.488,378 3,263,247 4,933,807
'
Business License Tax 1,076,541 1,085,411 1,071,997 1,258,688 1,311,090
Timeshare Mitigation Fee 1,110,227 1,192,490 1,483,220 949,871 881,350
Plan Check Fees 275,728 317,332 224,325 389,770 562,930
Property Transfer Tax 485,040 399,280 455,580 324,817 604,236
Other Revenues(2) 1.398.669 1.475.154 1.567.651 1.601.947 1.900.529
Total General Revenue 5 45,063,098 $ 44,161,178 S 46,068,426 $ 46,840,703 $ 55,085,806
(1)State Subventions is any combination of motor vehicle and off-highway in-liens,and subventions from state.
(2)Other Revenues is any combination of miscellaneous penalties and interest,permits.grants,parking bails,fees,
sales of maps and publications,vehicle and court fines.rental income and other revenues.
(3)The State of California reprogramed motor vehicle fees,the City now receives this as property taxes.
(4)Reimbursements is a combination of RDA costs and other reimbursements.due to dissolution in February 2012 the RDA reimbursement
is limited and applies to existing projects.
192
•
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
$70,000,000 1
$60,000,000
$50,000,000 — — — Ill .Combined Other I II
■Interesi
$40,000,000 - --- 'P`°P"`5 Tax
—
", — OTransient Occupancy Tax
$30,000,000 — �.' = — — ■Sales Tax— — ..
L— -
$20,000,000 - —
—
$10,000,000 -
$0 i A
, ,i, , cr m N 0 T CO
O Q
O O O ] O d O O 0
N N N N IN :V N N N N
7- 7- 7- r r r r r r
1.L LL LL_ Li. L_ LL LL U- LL
(1)Combined Other is arty combination of transfers,franchises,stare 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 and off-highway in-liens,and
subventions from state.
193
City of Palm Desert
Supplemental-Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY - 017
Expenditure: —
Public Safety(1) $ 20,424,249 $ 20,151,237 $ 18.784.117 $ 17,306,342 $ 17.002.291
_Ai
City Administration(2) 8,238.228 7,971,706 7,561.255 7.413,578 7,180.519
Public Works Administration 2,637,630 2,664.871 2,645.443 2,556,967 2,528.131
Community Promotions ill 1.062,611 791,565 749,631 618,138 575,119
Street Maintenance 'l 2,418,451 2,709,328 2.631,590 2,806,168 2.353,655
Building Safety 1,849,442 1.888,290 1.847,798 1,783,918 1,517.937
Street Resurfacing 25,326 1,083.919 998,463 4,466 1,179,743
Public Works(4) 970,877 1,004,989 1.067.837 1,018,435 1,505.018
Other Expenditures(3) 18,302.019 14.010,275 14.512.426 14,430,399 14,762,237
Total Expenditures I S 55,928.833 S 52,276,180 S 50,798,560 S 47,938,411 S 48,604,650
FY 2012 2011 2010 24 2008
Expenditure:
Public Safety(I) I $ 16,532,894 $ 16,047,991 $ 15,671,095 ^$ 16,266,052 $ 14,413,196
City Administration(2) 7.670,377 8,023.314 8,556,627 10,076,543 9,861,106
Public Works Administration 2,527,817 2,380.255 3,021,319 3,720,106 3,329,792
Community Promotions 526.804 497.366 990,505 1.798,860 2,532,637
Street Maintenance 2,446.854 2,522,117 2,565,567 2,183,445 2,133.448
'
Building Safety 1,538,506 1.523,748 1,756.589 2.082,996 3,260,855
Street Resurfacing 2,332,968 2.268,901 708,006 1,115,721 3,342,542
Public Works(4) 1,056,998 1.354.255 1,278,983 1,552,242 1,348,012
Other Expenditures(1) 8.984.441 12.894.776 8.301,439 13,513,354 11.159.329
T al Ex enditur - S 43,617.659 S 47.512,723 S 42.8511,130 S 52,309,319 S 51,380,917
(1)Public Safety is any combination of animal regulation,police services,and traffic safety expenditures,this does not include the cost
for Fire Services. Fire Services are reported in a different And
(2)City Administration is any combination of community services,auditing,City attorney,City clerk, City council and
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 acquisitions,committees, contributions,community,retiree health
development,marketing,interfund transfers,parks,recreation and culture,extraordinary loss and visitor center,
included in the transfer out is transfer to the Fire fund for its shortfall.
(4)Public Works is a combination of curb&gutter,parking lot,storm drain,auto fleet,corporate yard
equipment,building maintenance,Portola Community center,storm water permit.
194
City of Palm Desert
Supplemental Graph-Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
560,000,000
.ra.nas of i
$50,000,000
-
$40,000,000 ec�munln wornotwns
S30,000,000 1 _ owwu+xorr mm��«wii
$20,000,000 - _ .c,n.ldmixielrmwn i 2,
S 10,000,000
■I•ohI,e Safe%11,
S0 .1 _ J 7:51 -- - — L. . e�
r -t rq c x
0 o e o o c c a.
u. 1TM fl.I kl W i
(1)"Combined Other"is any combination of street maintenance,building safety,.street resurfacing and public
works. It may also be aquisitions,centers,committees,contributions,community development,
marketing,interfund transfers,parks,recreation and culture,visitor center.
(2)City Administration is any combination of community services,auditing.City attorney,City clerk,City council and
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 acquisitions,committees,contributions,community,retiree health
development,marketing,interfund transfers,parks,recreation and culture,extraordinary loss and visitor center,
included in the transfer out is transfer to the Fire fiend for its shortfall.
(4)Public Works is a combination of curb it.gutter,parking lot,storm drain,auto fleet,corporate yard
equipment,building maintenance,Partola Community center,storm water permit.
195
THIS PAGE INTENTIONALLY LEFT BLANK
196
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY
Total General Revenue(2) ti 56,079,870 $ 53,437,908 $ 50,055,811 $ 48,723,641 $ 47,029,063
Population(1) 50,740 49,335 51.053 50,417 49,949
General Revenue Per Capita 1,105 1,083 $ 980 $ 966 $ 942
FY ' 012 201
Total General Revenue(2) $ 42,822,395 $ 41,469,544 $ 41,320,754 $ 44,156,135 $ 53,984,196
Population(1) 49,471 49,111 52,067 51,509 50,907
General Revenue Per Capita $ 866 $ 844 $ 794 $ 857 $ 1,060
FY 2017 2016 2015 2014 2013
Total Genera! Expenditures(2) $ 48,427,111 $ 48,134,252 $ 46,302,187 $ 44,183,659 $ 42,155,428
Population(1) 50,740 49,335 51,053 50,417 49,949
General Expenditures Per 954 976 S 907 $ 876 S 844
Capita a SOW
FY 2012 2011 .20 0 , 1,19 T r,!z
Total General Expenditures(2) , $ 42,099,903 $ 41,833,291 $ 42,499,812 $ 48,696,321 $ 49,238,257
Population(1) 49,471 49,111 52,067 51,509 50,907
General Expenditures Per 5 851 $ 852 $ 816 $ 945 $ 967
Capita _. . . .. _ . .
(I)Population figures are as of January start offiscal year.
(2)Interfund Transfers In/Out and extraordinary loss(gain)are not included in total.
Sources: Population figures from State Department of Finance,City of Palm Desert Finance Departmen
197
City of Palm Desert
Assessed Value and Esitmatcd Actual Value el-Taxable Propert
ee�PP Last Ten Fiscal 1 cars
Fiscal Year Residential mercial Institutional Less:Tax Total Taxable Total Direct Estimated Actual
Ended June 30 property Industrial Property Vacant Land Exempt Assessed Value Tax Rate Taxable value co
Property _. __•-=�= -.-T= �
2017 10555,732,091 2,434,816.656 58,318.902 379,073.252 (306,174,550) 14.579.740.457 1.00000 14.095.158.994
2016 10,174,360.142 2,358,860.033 56,840.001 412.090.006 (312.620,004) 14.210.000.198 1.00000 13.743.682.041
2015 9.636.181.445 2.290,456,630 54.211.991 420.142.932 (298.165,952) 13,552,997.813 1.00000 13,086,962.905
2014 9,043.372,632 2.247,924,054 64.595.519 426.330.424 (297.139,386) 12.919.103.760 1.00000 12.453.921.285
2013 8,621,493.305 2,239,836.432 62.565.263 462.982.950 (300,313.265) 12,513,052.693 1.00000 12,064.845,537
2012 1 8,694,403.021 2.198.729.088 50.256,665 462.309.984 (288.975.823) 12.564.166.215 1.00000 12,123,771,853
2011 8,982,403.643 2.179.940.065 52.528.676 504.683.270 (288.907.7201 13.132.169.069 1.00000 12,707,884.566
2010 9.210.638.643 2,419,511.046 54,986.887 426.163,878 (274.944.4371 13.747,221,855 1.00000 13.334.233.975
2009 9,376,213.348 2.130.957.579 127,857.455 667.700,041 (255.714,909) 14,206,383.860 1.00000 13,808,181.235
2008 9,160,443.514 1,929,224.481 134.910.803 688.045.095 (242.839.445) 13.491.080.286 1.00000 13.114.105.220
fI)Estimated Actual Taxable rain. het Taiable I"ahie
Nates•:Properly Taxes in Harr ide f'mmty are subject it the Slate of California's Proposuwn 13.Jaria-Gann/niliulpe which ellnx•s reapprwsub.of real pmpery only
when there is a change in ownership or new•071..0n10an lakes place. Further,the pmpasikon Ionia properly acsessmenl tncrpase In no more than la o(2951 perceei
unroll). Properly a assessed or one howtdred peneru 1100%0 of us fair market value en the lime of new evnnsrntcnem err charge III ownership.
The lax nor is one(1%)perc'enl of the assessed mine.
.Source:Riverside County Assessor thew NTH Corm&('one
198
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 2008 to FY 2017
$20,000
$15,000
$10,000
$5,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Percent Increase in Assessed Valuation
FY 2008 to FY 2017
20.00% -
15.00%
10.63%
10.00% -----
.29% 5.08% 5.02%
5.00% — 3.22°I°
0.00 Yo - r f 1111111
2008 2009 10 2011 2012 013 2014 2015 2016 2017
-5.00%
°
. ° -4.70% -4.60% -0.49%
Historical Major Additions
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club#28 93/94 Desert Springs Marriott 86/87
Price ClublCostco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC#29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr(Best Buy) 97/98
Gardens on El Paseo 98/99
Remodel Westfield Mall(Sears, Barnes&Noble) 04/05
Sears Automotive 04/05
Lowes Home Improvement 05/06
Walmart 1 Sams Supercenters 05/06
kohls 07/08
Golfsmith Extreme 08/09
El Paseo Village 09/10
Best Buy&Ulta 11/12
Remodel Westfield Mall (Dick's1H&M/Restaurants) 12/13
PGA Tour Superstore 12/13
Total Wine&More 13/14
Tesla Motors 15/16
Source:Riverside County Assessor thru IIDL Coren&Cone
199
City of Palm Desert
Supplemental FY 2017 and 2016 Breakdown of Basic lob Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2017 Rate 1:1'2016 Rate
County General 28.177327% 28.177327%
County Free Library 2.728242% 2.728242%
County Structure Fire Protection S 873086% 5.873086%
City of Palm Desert(1) 0.000000% 0.000000%
Desert Sands Unified School District 36.221587% 36.221587%
Desert Community College 7.526714% 7.526714%
Riverside County Reg.Park&Open Space 0.426231% 0.426231%
Riverside County Office of Education 4.094919% 4.094919%
Desert Hospital I.996808% 1.996808%
Coachella Valley Public Cemetary 0.339927% 0.339927%
Coachella Valley Recreation&Park 2.071624% 2.071624%
Coachella Valley Mosquito&Vector Control 1.369698% 1.369698%
Coachella Valley County Water 2.736607% 2.736607%
Coachella Valley County Water Imp.District 80 2.972906% 2.972906%
Coachella Valley County Water Storm Water Unit 3.464324% 3.464324%
General Purpose Basic]%_ 100.000000% 100.000000%
(1)City of Palm Desert is a No-Low Properly Tax City and the 7%represents what the state allocates to No-Lon,Property
Tax Cities.
Source:County of Riverside.Property Tax Allocation Percentages, TRA 018-041.
200
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
City Direct Overlapping Rates
Fiscal Basic Total Desert Sands Desert Coachella Coachella
Year County-wide Direct Tax Unified School Community Valley Water Valley Water
Levy Rate District ... College Dist. District District E.D.58 .
2017141.00000 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
201 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 1.00000 1.00000 0.08112 0.01995 0.06000 0.00000
i
2009' 1-00000 1.00000 0.07990 0.01995 0.04000 0.00000
2008 i 1.00000 1.00000 0.07561 0.01995 0.04000 0.00230
Notes: Proposition 13 limits the ability of the city to raise the property tax rate.
Source:CalMuni Statistics Inc
201
City of Palm Desert
Principal Property, Taxpayers
Current and Ten Years Ago
2017 2008
Taxable Percentage of Total Percentage of Total
Taxpayer City Tax Assessed Taxpayer Taxable City Tax Assessed
Assessed Value Value Assessed Value Value
WEA Palm Desert $ 150,145,771 1.06% Marriott Desert Springs 5269,412,639 1.80%
Marriott Desert Springs 140,129,814 0.99% WEA Palm Desert 133,043,368 0.98%
Gardens on El Paseo LLC 131,191,618 0.93% Elisabeth E.Stewart 92,989,453 0.73%
WVC Rancho Mirage 102,116,775 0.72% Desert Crossing II 84,863,834 0.70%
Pru Desert Crossing II 96,076,057 0.68% Gardens SPE It 75,697,198 0.62%
LLC
CC Cimarron LP 69,535,716 0.49% Walmart Real Estate 43,333,751 0.43%
Business Trust
Walmart Real Estate 53,335,846 0.38% Monarch Sevilla Venture 42,564,728 0.35%
Business Trust
Segovia Operations 49,626,532 0.35% Marriott Ownership 39,910,141 0.30%
Resorts
Sunrise Spectrum 48,685,286 0.34% Bighorn Development 38,832,774 0.28%
Fountains Carlotta 45,927,198 0.32% Palm Desert Funding Co 38,505,599 0.27%
r Total . $ 886,770,613 6.26% Total $ 859,153,485 6.46%
Note:The estimated properly tas revenue skated above is based upon net taxable values.tux Folios and have year values that impact the revenue
calculation.As a result,parcels with the same assessed value that are assigned to diflerent tax rate areas mcry contribute dissimilar amounts
of total revenue to the City and Redevelopment Agency.
Source:Hdl.Caren&Cone dint Riverside C'ounty Assessor 16 17 and HdL Caren rC Cone thru Riverside("aunty Assessor 07 08
202
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Fiscal Year of the Levy{11l2l Pi
Year Taxes Levied Collections Total Collections to Date
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years i"i Amount Ib1151 of Levy
2008 5,206,384 4,734,970 90.95% 471,414 $ 5,206,384 100.00%
2009 5,697,181 4,760,806 83.56% 135,057 $ 4,895,863 85.93%
2010 5,372,247 4,686,541 87.24% 282,866 $ 4,969,407 92.50%
2011 5,312,856 4,560,417 87.24% 486,495 $ 4,776,796 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 5,623,658 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%
(1)City of Palm Desert is on the"Teeter Plan"with the County of Riverside.The first payment was
received in the fiscal year 1993/94.
(2)City of Palm Desert is a"No-Low 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 I%assessed values within the City less the
Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes.
(3)Fiscal Year 1996/97 final total collected includes adjustments for No-Low property
tax collections from prior years modified by the County of Riverside. The County adjusted the payment so
the City of Palm Desert(FY 1995/96)for the annexation of Palm Desert Country Club.
(4)Includes tax collections accrued as of June 30.2017.
(5)Includes amounts receivable for tax year 2016-2017 along with prior receivables due for prior tax years.
Source:Riverside County Auditor Controller Office and City of Palm Desert
203
City of Palm Dean
i upplem ntal Top 25 Saks Tax Generators
Graph-Historical Sales Tax Trends
June 30,2017
Top 25 Sales Tax Generators(t1 Primary Economic Category
ALBERTSON'S FOOD CENTERS SUPERMARKETS
APPLE STORES SPECIALTY STORES
BEST BUY STORES LP APPLIANCE 1 ELECTRONICS
CIRCLE K FOOD STORES SERVICE STATIONS
COSTCO WHOLESALE COMPANY WHOLESALE GENERAL STORES
J.C.PENNY COMPANY DEPARTMENT STORES
JW MARRIOTT DESERT SPRINGS HOTEL/FOOD&BEVERAGE
KOHLS DEPARTMENT STORES DEPARTMENT STORES
LOWE'S HOME CENTERS BLDG MAILS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
NORDSTROM RACK DEPARTMENT STORES
PGA TOUR SUPERSTORE GOLF&SPORTING GOODS
~ RALPHS GROCERY SUPERMARKETS
SAKS FIFTH AVENUE DEPARTMENT STORES
SAME CLUB WHOLESALE GENERAL STORES
SEARS ROEBUCK&CO DEPARTMENT STORES
SIMPLOT PARTNERS SPECIALTY WHOLESALE STORES
STONELEOGE FURNITURE HOME FURNISHINGS
SUPERIOR POOL PRODUCTS SPECIALTY WHOLESALE STORES
TARGET STORES DEPARTMENT STORES
TEELA MOTORS AUTOMOBILE DEALER
TIME WARNER CABLE PACIFIC WEST TV CABLE PROVIDER
TOMMY BAHAMA APPAREL STORES/RESTAURANT
TOTAL WINE&MORE SUPERMARKETS
WAL-MARTSUPERCENTER _ DEPARTMENT STORES
[11 Listed in AlphaMmcat Orrkr
Sales and Use Tax Trends FY 2008- 2017
Millions
Fr=%Change from Prior Year
$23.0
$21.0
$19.0 L.1% -257%
517-0 7 sx sr, �,-In Liets'
S15.0 Sex �1x-105%
$13.0
$9.0
$7.0
co
N N N ry N N N N N
Amounts 17.195 14.474 13.273 14.660 15.836 16.764 17.258 17.564 18.994 18.505
Annie Curren![ahforata km prohibits prrxhrcrxn of 81di1'rlrrnl tire tr fern ware as an effort nut err rr/Srag•c.r prnprierlrry.
10117ralton•therefore crnrfrtienaal rrrformarinri which is proieclydby lass ae ant disclosed.
# The Stale o(Californlu exchanged Sales Tar Roemer rwrh Properly races.Bus amount represents the partial:of sales lire shirr were exchanged
Source'SHOE Uata•Mnm Seruicer Ill' In Lea,vrn ry cif}•from Sarre ERAF Propsay Taxes.Cay of Pale Desert
204
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector .2010_ 2015 . .201.►.
Apparel Stores $ 2,017.617 5 2,054.232 S 2,080,342 5 1.956,390 $ 1.884,720 $ 1,738,840 $ 1,682,350 $ 1,341,880 $ 1,424,880 $ 1,592,070
General Merchandise 3,588,672 3,678,239 3.786,704 3.809,305 3.783,700 3,667.800 3,210,230 3,043,960 3,286,730 3,885,830
Food Markets 753.419 757,334 799,835 807.438 767,770 507.340 468,960 405.730 448,800 493,980
Restaurants 2,955,944 2,820.500 2.725,634 2.561,784 2.377,780 2,276,530 1,520.430 1,374,750 1,459,070 1,817.310
Furniture/Appliance 1,146,949 1,099,638 1,048,971 988,716 996,960 973,270 971,710 974,150 1,061,680 1,357,750
Bldg-lriatls-Wholesale 1,274,500 1,200,141 1,128,350 1.113,345 984,810 882.170 730,230 582,410 855,640 956,330
Automotive 525.291 256,144 221,758 201,898 198,570 182.640 150,940 113,140 103,010 85.960
Service Slations anii 430,720 508,861 597,432 624,849 638,490 866,370 607,640 664.160 649.120 639.690
Other Relail am1,912,870 1,879.937 1.869,242 1,769,914 1,586,330 1,489,210 1,414,080 1,857.220 2,180.050 2,829.730
Non-Retail{11 1,911,824 1,859,439 1,681,430 1,498,793 1,455,190 1,262,170 1,822,270 1,858.550 1,822,230 2,194,110
Totals 516,517,806 $16,114,465 $15,939,698 $15.332,432 S14,674.320 $13,846,340 $12,578.780 $12,213.930 $13,281,190 $15,852.760
City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
(I)Nwt-renal ore•a actx ofm.ms/lrcnrrers disrnhuktrs.builders cod p j•ssuuculs rifling dnecr rn ennramcrr.
Note:The comhlnedsates tax rate for the City nfPatin Desert is 7,75555 which tspsssents the State of California mandated tax rule
of 7.25%and 0.53s additional sales tax imposed by the County of Riverside.
The City of Palm Desert receives 1%of all sales tux generated within the city limits.
�vree.hr nrrrrvfuertiCnaColpfurniaState Mouth fEgvatrranun
205 •
l
City of Palm Desert
Supplemental Principal Sales Tax Remitters
Current and Ten Calendar Years Ago
Industry 2016 2007
Tax Amount Percentage Tax Amount Percentage
General Merchandise 3,588,672 21.73% $ 3,885,830 24.51%
Other Retail 1,912,870 11.58% $ 2,829,730 17.85%
Non-Retail (1) 1,911,824 11.57% $ 2,194,110 13.84%
Restaurants 2,955,944 17.90% $ 1,817,310 11.46%
Apparel Stores 2,017,617 12.21% $ 1.592,070 10.04%
Furniture/Appliance 1,146,949 6.94% $ 1,357,750 8.56%
Service Stations 430,720 2.61% $ 639,690 4.04%
BIdg.Matls-Wholesale 1,274,500 7.72% $ 956,330 6.03%
Food Markets 753,419 4.56% $ 493,980 3.12%
Automotive 525,291 3.18% $ 85,960 0.54%
Totals $ 16,517,606 $ 15,852,760
(1)Non-retail are a mix of manufacturers,distributors,builders and professionals selling direct to consumers.
Note: The combined sales tax rate for the City of Palm Desert is 7.75%.which represents the State of California mandated tax rate
of 7.25%and 0.5%additional sales tax imposed by the County of Riverside.
The City of Palm Desert receives I%of all sales tax generated within the city limits.
Source:Munisenaces LLC via California State Board of Equali=arion
206
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business T Activities
Special Assessment/ :otal
Fiscal Local Obligation Cuts •Primary
Year Bonds` a Payable 'Government
2008 2,748,000 490.828 1,582.782 4,821,610
2009 4,717,000 ° 368,121 955.141 6,040,262
2010 10,095,000 ''t 245,414 328.273 10,668,687
2011 9,543,000 122,707 1,035.721 10,701,428
2012 9,238,000 - 2,291,358 11,529,358
2013 8,920,000 - 1.751.083 10,671,083
2014 8,246.000 - 1,222.915 9,468,915
2015 3,302,000 - 1,435.046 4,737,046
2016 3,045,000 - 929.860 3,974,860
2017 2.808,000 - 499.881 3,307,881
Fiduciary Activities
—
Sp
Fiscal Redevelopment i Assessment ringi
ersonal Per
Year Bonds f Bonds r ncome 4U , Capita"
2008 412,694.700 112,615,000 21.53% 10,962 "
2009 401.601,475 109,880,000 20.66% 10,641
2010 388.972,156 107,070,000 19.74% 10,277
2011 368.261.367 104,170,000 18.52% 9,096
2012 354,527,796 101,155,000 17.60% 8,707
2013 339.786,269 98,035,000 16.66% 8,322
2014 317.717,317 86,385,000 15.15% 7,638
2015 301,004,341 83,170,000 14.19% 7,244
2016 284.580,062 59,070,000 ° 12.51% 6,966
2017 265,125,000 1 56,115,000 12.23% 7,044
,Voles:Details regarding the cil s outstanding debt can he finsnd in the notes to the financial statements.
-The city is_sued550.51 million 4.v-serial assessment bonds to fiscal year end 2007 allocated to three separate assessment districts.1n addition the City's
Rederelopment Agency issued 5284.37 in bonds of which 5183.15 was new debt
°-Personal income,population and per capita informalran provided by California Department of Finance.
and US-Census Bureau and or estimated by City finance using 1%groa-th rule.
-Special Assessment(iavernnienl Activities includes Highlands 1IndergroundingAD Nos 04.01.as of June 30.NH the balance was 51.40A!
d-Fiscal Year End 2009 the('sly issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A(Taxable)52.5 million to fund the
Energy Independence Loan Program. The actual Bond Issuance was for S2.015M. At June 30,2017 the ouisiamdng balance was 5-1323M
e-The City issued 51.136 million dollars of the Energy Independence Program(ABRI I Assessments)Limited Obligation Improvement Bonds(Taxable)
The special assessment collection will commence during the fiscal year 2010-2011. Al June 30,2017 the outstanding balance was 50.575m..
Jr.-In addition the Palm Desert Financing Authority issued 55.225 million dollars of the Energy Independence Program Variable Hale Demand Lease
Preemie Bonds.Series 2009(Federally Taxable). On September 2.201.1 the bonds were called In full.al June 30,2017 their were no outstanding bonds.
g-Personal income and Per Capita statistic includes government.business,and fiduciary aclicurses combined.
h-During the Fiscal Year 2015-16 the Communities I'acdtlres l]islrrcl 2005-1(llmrersny Park Series,Special Tax Bands Series 2006A and Series 2007
defrased 520-88561 of the original issued567 71SM
i-During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds(1)the Tax Allocation Refunding Bonds.20I7Serier A(552.39MJ,
(Si)Taxable Tax Allocation Refunding Bonds,2017 Series B f514o.I3oww.Tax allocation Refunding Bands,2017 Series N-A/57.36544).and
(Si)Taxable Tax Allocation Refunding Bonds.2017/I--B (545.81SM1-See Note 18 Tax Allocation Bonds.The 2017 Refunding Bonds refunded all of the
tax allocation revenue bonds;with the exception of the Project Area Na.1 2007A Bonds,and the Project Area Na.2 201)3 Ronds.
207
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
general Bonded Debt Outstanding
Successor Agency Percentage of Actual
fiscal Redevelopment Special Assessment Taxable Value of....:. Per
Bonds ip Bonds Property Capita
Note: There is no General Obligation Bonds from FY 2008 to FY 2017
208
City of Palm Desert
Supplemental Special Assessment Information
June 30,2017
2003 01-01
Revenue Bonds 2004 R-Bonds Community Facilities District 2004-2 Section 29
2003 01-01 Revenue No.2005-1(University Park) Assessment District
I)iStrict i sae\Description s Silver Spur Ranch 98-1
Bands 94-3 iMlerano' Utility Special Tax Bonds Series Limited Obligation
Canyons rd'Bighorn 200fiq Improvement Ronda
llndergrounding`
Bond Issue Date 06/25/03 06/25/03 02%]9 04 05/09/06 3/29/2007
Final Maturity Date 09/02/20 09/02/28 09/02/]8 09/01/37_ 9/2/2037-
Hi,hest Interest Rate 5.25% 5 375% 5.100% 5 424% 5 100%
Bond Issue Amount $ 1,153,000 S 2,340,000 S 2,955,000 $ 67,915,000 29,430,000
Matured Principal $ 793,000 $ 825,000�$ 1,485,000 $ 10,815,000` 4,550,000
Called Principal $ 10,000 $ 160,000 $ 1,340,000 $ 27,015,000 2,305,000
Outstanding Bands(4) 8 350,000 S 1,355.000 5 130,000 5 30,0135,000 22,575,000
Redemption Premium 3.00% 3.00% 3.00% 3.00% 3.00%
Original Parcels 12] 201 97 78 748
Active Parcels i18 193 3 67 666
Reserve Requirement $ 44,000 5 148,500 $ 13,000 $ 2,469,129N 5 1,757,210
Reserve Balance 16/17 $ 69.587 S 161,803 S 73,764 $ 2,529,793 $ 1,785,794
Principal Due 17/18`a' $ 85,000 $ 85,000 $ 65,000 $ 890,000 670,000
Principal Levied 1.6/17''' $ 83.270 $ 84,555 S 58,938 $ 890.000 699,420
Interest Due 17/18`'' $ 11.573 $ 69,514 $ 4,940' $ 1,579,125 1,117,210
Interest Levied 16117`'' $ 18,212 $ 73,049 $ 6,099 5 1,601,375 1.2-10.707
14/15 Delinquency Rate 184% 3.66% 000°/% 508%
Arbitrage Installment Computation Date: 06/25/18 06125/18 09/02/18 05/08/21 04.11/22
90%Rebate Due _
Arbitrage Yield Rate 4 913% 4.9129% 4.4994% 5.3599% 5 0134°e
Arbitrage-Amount Owed - - - ! -
Continuing Disclosure Last Report 1211512016 12/15/2016 12115f2016 12/15/2016f12 1212036
Issued: .
Series 2008
Community Facilities
District NamelDescription District No.91-1
Special Tax Refunding
Bonds
Bond Issue Date 12.16 2007
Final Maturity Date 10 1 2020
Highest Interest Rate 4000%
Bond Issue Amount 10,935,000
Matured Principal 9,305.000
Called Principal -
Outstanding Bands"' 1,630.000
Redemplion Premium 3 00%
Original Parcels(Parcels in District) 1,153
Active Parcels 1,060
Reserve Requirement 5 532.381
Reserve Balance 14/15'11 $ 532,678
Principal Due 17/1812' 1,105,000
Principal Levied 16/17`'' 1.105,000
Interest Due 17/18'2' 41,719
Interest Levied 16/17`3' 62,438
14115 Delinquency Rate 0 65%
Arbitrage Installment Computation Dale: 005/18
90%Rebate Due
Arbitrage Yield Rate 3 8681%
Arbitrage-Amount Owed -
Continuing Disclosure Last Report
,Issued: 12/15/2016
(1)Revere Balances are avrfh 30 17.
(2)Amount represents principal and interest collected.suring the FY 16 17 tax roll for Debt Service Payment due in FY 17 18.
(3)Levied ammints reflect adjustments far consinic f#t fonds,resent.furxls,redemption flouts and otheradjas[merrte.
(a)Outsrandtng hand balance al June 30.201Z
(5)The schedule presents the:On-matron flit each individual local rbltganan handed dismci.Assessment Districts
94-3 Merino and 01-01 Si)erSpur were refunded and nhligarted iopuy Behr Service to Series 2003 A.ssessmem Revenue Banc
see note 13 for additional tnJannattun.
Source:Wildan Financial Annual Report
209
9
City of Palm Desert
Direct and Overlapping Government Activites Debt
June 30,2017
2016117 Assessed Valuation: S 14,096,284,946
Citys Share of
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT Total Debt 6130117 %Applicable(1) Debt 6130/17
Desert Community College District S 278,449,403 18.905% 5 52,640,860
Desert Sands Unified School District 316,115,000 34.293% 108,405,317
Palm Springs Unified School District 423,340,521 4,440% 18396,319
City of Palm Desert Limited Obligation improvement Bondi 1,398,000 100.000% 1,398,000
City of Palm Desert 1915 Act Bonds 25,820,000 100.000% 25,820,000
City of Palm Desert Community Facilities District No,91-1 1,630,000 100.000% 1,630,000
City of Palm Desert Community Facilities District No.2005-1 30,085,000 100.000% 30,085,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEB" S 238,775,496
OVERLAPPING GENERAL FUND OBLIGATION DEB1
Riverside County General Fund Obligations b 849,105,407 5.627% $ 47,779,1.61
Riverside County Pensions Obligations 286,535,000 5.627% I6,123,324
Desert Sands Unified School District Certificates of Participation 49,805,000 34.293% 17,079,629
City of Palm Desert General Fund Obligations 2,808,000 100.000% 2,808,000 (3)
Coachella Valley Recreation and Park District Certificates of Participation 1,077,045 26.909°a 289,822
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEB S 84,079,936
Less: Riverside County Supported Obligations 272,754
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT S. 83,807,182
OVERLAPPING TAX INCREMENT DEBT.(SUCCESSOR AGENCIES) S 553,088,028 0.265-100% S 266,107,152
TOTAL CITY DIRECT DEBT 5 _
TOTAL GROSS OVERLAPPING DEBT
5 586,154,584
TOTAL NET OVERLAPPING DEBT
S 585,881,530
GROSS COMBINED TOTAL DEBT s 586,154,584 (2)
NET COMBINED TOTAL DEBT
S 585,881,830
(I)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 tax and revenue anticipation notes,enterprise revenue,mortgage revenue and non-bonded capital lease obligations.
(3)Includes special assessment debt with government commitment,limited obligation improvement bonds,and lease revenue bonds,if applicable.
Ratios 10 2016-17 Adjusted Assessed Valuation-
Total Overlapping Tax and Assessment Debt 1.69%
Total Direct Debt 0.00%
Gross Combined Total Debt 4.16%
Net Combined Total Debt 4.16%
Ratios to Redevelopment Successor Agencies Redevelopment Incremental Valuation 5 (9,047,051,016)
Total Overlapping Tax Increment Debt 2.94%
Source:California Municipal Statistics,Inc.,City of Palm Desert Finance Department
. 210
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Galt ulalion for Fiscal Year 2017
Assessed Value oad i 14,096,284,946
Debt Limit f15%of Assessed Value)1I) 2,114,44Z,742
Debt Apptiieble to Limn:
General Obligation bonds 1410.000
Less:Artwurl eel aside for
repayment of general obligation
--
debt -
Total Debi Appticabie to Limit -
Legal debt margin ir;i 2,113,032.742
FISCAL YEAR
2006 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debi Limit IIII
1.971.408.152 2,076.172690 1,999,711.410 1,969,825.360 1.884624,932 1.811626834 1,699,999,132 1,963,741,235 2.056816120 2.114442.742
Tolal Net debt apphcable to lima 2.748,000 2.702600 1,719.000 1,658.000 1.821,400 1669.800 1,526.000 1_490,000 5.451.000 1,410,000
Legal debt margin 1,966,660,162 2,073,470.690 1.986,012.41C 1,968,167.380 1686000,932 1.810,031,824 1.863173.132 1.962.252.235 2,058,364,120 2,113,032,742
Total net debt applicable to tY 14
as a percentage of debt Omit 0.14% 0.13% 0.09% 0.08% 0.09% 0.09% 0.08% 0.08% 0.07% 0 07%
lit Section 43605 of the C'ah tome Government(rub'
Source.('aihour.,,ihahvpd SYnrystk,Fec.kra F.ruvt.rvc,,
211
•
City of Palm Desert
Pleadge-Revenue Coverage
Last Ten Fiscal Years
Special Assessment Bonds — Tax Increment°
Illiiir_Special Debt Sore Ice Special CP Debt So re lea
meat Assessment
lions Principal Interest Coverage Collections _ Principal Interest Coverage
2008 • 6,245,888 1,635,000 ` 5,414.793 0.8860 41,978,187 10,61.0,000 21,402,246 1311
2009 ° 8,488,467 2,816,000 5,666,827 1.0004 33,095,785 12,610,000 20,043,623 1.013
2010 e 6,304,563 3,793,000 5.515,677 0.6773 33,292,785 14,145,000 19,516,455 0.989
2011 9,695,863 3,452,000 5,595,543 1.0717 39,400.572 22,240.000 18.767,205 0.961
2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 ° 15.290.000 17.651,958 1.000
2013 9,524,786 3,786,896 5,255.558 1.0533 33,473,418 9 16,315,000 17,158,418 1.000
2014 t 14,895,214 12,324,000 ' 4,954.432 0.8621 38,444,447 9 23,650,000 14.794,447 1.000
2015 10,848.129 ' 8,159,000 h 4,543,692 0.8540 32,294,255 9 18,295.000 13,999,255 1.000
2016 8,537,227 25,401,000 ' 4,463,786 0.2859 34,810,024 2 18,055,000 16,755,024 1.000
2017 5,896,670 3,192,000 . 3,233,399 0.9177 37,535,680 °° 16.255,000 °•'` 21,280,680 1.000
Notes:Details regarding the city's outstanding debt can he found in the reuses to the financial statements.
a-(luring the fiscal year 2tRm 517.915 addiannal bonds were issued for the('FIB 2005-1 Special Tax Bonds Series 2006A:which had originally-issued 550.51 million in fiscal year 2007.
The RDA issued 5281.s?mi!lxin v/debt mrahich 3183 15 was new dehi
6-Tax increment bonds are backed by property tar increment based on calculation provided hy-the Riverside['aunty tax assessor office.
Additional information on tax increment can he found in the notes to the financial statements-
`'The 1997 914 Bonds was refunded in full on April 1,2008,with Communities Facilities District no.91-1 ImproreauentSpecial Tax Refunding Bonds
Additional principal on nude 14 reflects the total principal paid along with the refunded portion.
d'The City issued 52.015 million dollars of the Energy Independence Program(AB811 Assessments)LimitedObhgation Improvement Bonds minable/
The special assessment collec•nun will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2,2010.
e-The City issued 51.136 million dollars of the Energy Independence Program(A8811 Assessments)Limited Obligation Improvement Bands(Taxable)
The special assessment collection will commence during the fiscal year 2010-7011
in addition the Palm Desert Financing Author*,issued 55.223 mullion dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue&mils..Series 2009(Federally Taxable)- Interest is paid monthlt.commencing August 7009 and Principal is paid annually on September 2
The first principal payment was paid an September 2.2010-
f-A portion of the 550.51(2007)and 517.915(2008)million('FD 2005-1(University Park)was prepaid in the amount of 56.269Million.The prepaid
56.269M and 52280(2004-1)were called during on September 2,2011
`" The rotal amnum payable for the bonded obligations is disbursed by the State of California Department of Finance to the CO of Palm Desert SuccessarAgency.
The annual collection equal the annual obligations.
a-The City called the 55.225 Million Energy independence Program Variable Rate Demand Lease Reremte Bombs,Series 2009(Federally Taxable)in
full on September 2.2011 in the amount of 51185 Million.The Energy Fund used the remaining 55.225 Bond Funds in the amount nf52.155Million
in addition to the 52.5 Million loan from the('i0'General Fund as proceeds to call the bonds.
`The(city of Palm Desert loaned the Energy Fund S2.5 Million to call the 55.225 Million Energy Independence Program Lease Revenue Bonds,
Series 2009(Federally Taxable).The 52.5 Million is included as Special Assessment Collections.
)-During the Fiscal Year 2015.16 the Communities Facilities District 2005-I(University Park Series,Special lies Bonds Series 20064 and Series 2007
defeased 520.885M of the original issued567.713M
1-During the Fiscal Year 21115-16 the('ommunuaes Facilities District 2005-1(University Park Series.Special Tax Ponds Series 20064 and Series 2007
defrayed 520.885Maf the original issued 567..715M.
k-During the Fiscal Year 2016-17 the Successor Agency issued four sencs of bonds(1)the Tax Allocation Refunding Bonds.2017 Series A(.552.39M).
(ii)Taxable Tax Alluc-auon Refunding Bonds,2017 Series B(5110.130M).The allocation Refunding Bonds,2017 Series H-A(S7-365M),and
(iv)Taxable Tar Allocation Refunding Bonds,2017 N-B(S13.81564).See Note 18 TaxAllocaaon Bonds.The 2017 Refunding Bonds refimded all oft e
tax allocation revenue bonds:with the exception of the Protect Area No.1 20074 Bands,and the Project Area No.2 2003 Bonds.
212
City of PaIm Desert
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease) Income CY a Income CY Rate h Population (Decrease) Rate h
2017 50,740 2.8% $ 2.789,208,727 $ 54,971 4.00% 2,384,783 1.57% 5.70%
2016 49,335 -3.4% $ 2,747,988,894 $ 55,701 4.20% 2,347,828 1.71% 6.70%
2015 51,053 1.3°Io $ 2,707,378,221 $ 53,031 4.60% 2,308,441 1.25% 6.50%
2014 50,417 0.9% $ 2,667,367,705 $ 52,906 4.90% 2,279,967 1.10% 8.40%
2013 49,949 1.0% $ 2,627,948,478 $ 52,613 6.00% 2,255,059 1.23% 10.20%
2012 49,471 0.7% $ 2,589,111,801 $ 52,336 7.74% 2,227,577 0.44% 11.99%
2011 49,111 -5.7% $ 2,550,849,065 $ 51,940 8.67% 2,217,778 3.66% 14.44%
2010 52,067 1.1% $ 2,513,151,788 $ 48,268 8.8% 2,139,535 1.51% 14.65%
2009 51,509 1.2% $ 2,476,011,613 $ 48,069 6.8% 2,107,653 0.93% 11.46%
2008 50,907 2.3% $ 2,439,420,309 $ 47,919 4.1% 2,088,322 6.91% 8.6%
a-Personal Income estimated hosed on average growth rate of previous„Our years. The growth rule factor used was 1.5%Income duke will he
updated once the actual data is available.
h-Unemployment rc+le JtsrJi.scal year 16 17 is based on unmet!tnfurmatuin from State oft'colt/orma Employment Development Department
Labor Market Information Division(not seasonally adjusted)
Sources:State Department tf 1•inance,II.S_Dept of.Labor,Slate Employment Development Department
213
City of Palm Desert
Principal Employers
Current and Ten Years Ago
yr
2017 2008
411.1'
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 Vdfas 2.311 1 9.79% Resort 1.300 1 3.9`
Universal Protection Services Securitas-Security Service USA
1,500 6.36% 700 2 2.13%
Securitas-Security Service College of the Desert
USA 700 3 2.97% 630 3 1.91%
Avida Caregivers Marriott Desert Springs Villas
550 4 2.33% 500 4 1.52%
Organization of Legal Pro's Sunshine Landscaping
501 5 2.12% 500 5 1.52%
Sunshine Landscape v Desert Valley Industries
500 6 2.12/0 400 6 1.22%
Costco Marriott Ownership Resorts
421 7 1.78% 300 7 0.91%
Marriott Shadow Ridge Sunrise Colony Ca.
300 8 1.27% 250 8 0.76%
Bighorn Golf Club 293 9 1 24°Iv Desert ARC
236 9 0.72%
Desert Arc Time Warner Cable 220 10 0.69°Iv
250 10 1.06%
Totals 7326 31% Totals 5.036 15%
Sources:lnfogroup,CA Employment Development Department-Federal and Stare Government nos included
•214
City of Palm Dcscrt
Supplemental Miscellaneous Statistics
June 30. 2017
Cityl Municipal Government
Form of Government: Council-City Manager/Charter City
Date of Incorporation: November 26, 1973
Number of Employees: 111 Full-time Employees
Size of City: 25.5 Square Miles
Geographic Location: Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets: 170 paved street miles
Number of Business Licenses: 10.150 active business licenses
Number of Hotels&Rooms: 16 hotels,2,467 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff-74 positions plus 32 support staff
Fire Department Contract with Riverside County/State Fire 53 positions plus 11 Fire Prevention staff
Animal Control Riverside County Animal Services
Water&Sewer Coachella Valley Water District
Trash Collection Burrtec-Waste Management
Electric Southern California Edison
Gas Southern California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
Elementary School(grades K-5) 4
Middle School (grades 6-8) 1
High School (grades 9-12) 1
Community College-College of the Desert 1
CSUSB-Palm Desert Campus 1
UCR-Palm Desert Graduate Center 1
Insurance Coverage
General Liability Coverage Calif-Joint Powers Insurance Authority $50 MillionlEvent
(Excludes Earthquake&Flood) Excess Coverage:from$2 Million up to$50 Million limit
Special Events Calif-Joint Powers Insurance Authority $1 Million
Worker's Compensation Calif-Joint Powers Insurance $10 Million
Property Insurance Calif-Joint Powers Insurance Based on Prop.Value
Health Insurance
Medical California PERS:choice of PPO.HMO,Kaiser. Blue Shield
Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability-Standard insurance Company
Life Standard Insurance Company
Retirement California PERS-Public Employees'Retirement System
Source.City of Palen Desert
215
City of Palm Desert
Full-time Equivalent City Government Employees by Function /Program
Last Ten Fiscal Years
Function/Program 2017 2016 2015 2014 2013° 2012''e 2011 a 2010 2009 2008
r
General Government
City 32 32 34 34 33 26 31 31 49 49
Economic Dev&Housing r • 11 13 13 13 12 17 24 25 19 19
Public Safety . • 29 28 26 25 24 24 25 26 35 35
Police&Fire(1) 170 163 169 173 157 162 155 151 148 146
Public Works 39 40 40 40 38 40 47 49 53 52
Totals 281 276 282 285 264 271 284 284 318 315
(I)The City operates as a"contract city"utilt:tng,primarily,agreement with other governmental entities,private firms and individuals
to provide service.i
Contracted set-ewes include:Police and Fire protection through the County of Riverside,Cal-Fire,animal control,health services,
legal services and Iandccwpe maintenance.
a-As of/tine 2011 realignments were made due to budget cuts,retirements and layoffs,these continued to FY 2013.
h-On February I.2012 the Stare of California dissolved the City of Palm Desen Redevelopment Agency as pan 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.
Source:City of Palm Desert Financial Plan,California Department of Forestry and Fire Protection,Riverside County Sheriffs Department
216
City of Palm Desert
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function 1 Program 2 1T 1 - 201 -"2015 1 2014 wl 2013 2012 2011 2010 1 2009 2 o a
General Government '
Business License Inspections " 24 33 196 477 515 473 617 469
Contracted Services-B u rrtec Waste (1)
Refuse Collected(tons) 54,301 52,772 54,865 57,935 52,131 49,205 53,108 51,483 58,198 87,940
RecydablesCollected 26,851 23,818 24,811 26,424 24,882 23,588 22,867 20,591 22,155 23,798
Public Safety
Physical Arrests 1,620 1,284 1,946 1,348 986 1,012 1,134 1,342 1,448 1,550
Parking Violations 587 712 794 388 198 569 332 933 1,278 770
Trat<icViotalions 6,939 6,223 5,525 5,284 5,080 6.216 8,360 10,200 9,162 5.929
Emergency Responses-Fire Department 9.617 9,285 8,628 8,235 7.907 7.151 7,720 7.772 7.149 6.908
•
Fires Extinguished 68 103 88 106 104 101 107 104 119 154
Fire Inspections 1,274 2,118 2,989 2,552 3.048 5.235 4,851 4,825 8,248 4.267
Buitdfng Permits Issued 4.734 4,704 4,909 5,552 4,548 3.448 3.711 3,230 3,637 4.012
Building Inspections Concluded 23,542 24,756 24,057 24,830 19,107 14,749 14,089 14,080 /8,040 26,401
Public Works
Street Resurfacing(miles) (3) 25.8 2.9 8 34 23 60 5 8 13 17
Parks,recreation&culture
Athletic Field Permits issued 3,197 2,997 4.430 6,548 2,635 3,682 6,050 6,281 6,149 5,949
Amphitheater 1 Pavilions Permits Issued 106 104 283 247 128 266 286 226 133 133
Community Canter Admissions 51,694 64.493 53,426 50.204 53.062 69,240 30,298 59,986 55,954 112.540
jpquatic Center Admissions (2). 58.023 60,359 64,103 43,545 48,663 45,909 4,329
I
(1)The('ivy operates ns a"crmtracv city"nfilizrng,primarily,agreement with lheign' metal entities.private firms and individuals
to pravkde senxres.
C'ontractedmreices inchtrk:Police and Fire protection through the County of Riverside.animal comml•health services.
legal services and landscape maintenance.
(2)Aquatic Center aperameu began on June 2011.managed by the YMCA.
(3)New methods of street resurfacing hare improved efficiency,therefore equaling more miles reserfaced.
(')Per Building&Safety Department ssspec•fiuru no linger done.
Sources:Riverside County Sheriff's Dept.California Slate Department ofFarestry&Fire Protection,
City of Palm Desert.Coachella Valley Recreation&Park District.Barrier Waite arid The YMCA.
217
(ln of Palm Desert
Capital Asset Statistics by Function 1 Program
Last Ten Fiscal Years
OM"►IIM' t117 Or
General Government
Contracted Services{1)
Colleceon trucks e4 35 30 30 38 36 51 51 54 69
Public Safety-Police S.Fire _ .1. .. •t.
Police swans 1 1 1 1 1 1 1 1 1 1
Pence Sub Statlois 1 1 1 1 1 0 0 2 2 2
Paucl units-Cars 29 29 29 26 28 31 31 26 30 29
Patrol unam-MoSrcydea 9 11 10 10 10 10 / 10 10 10 7
Fla Srabons 3 3 { 3 3 3 3 3 3 3 3
Fie Trucks 4 plus 1 Reserve 4 plus T Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rand 4 plus 2 Rsrvd
Ambulance 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rai-ad 4 plus 1 RsrW 4 plus 1 Rsrvd 3 plus 1 Spprt 3 plus 1 Spprl 3 plus 1 Spprl 3 plus 1 Spprt
Fre Prererraac Arck-us L 3 3 3 3 3 3 3 3 3 3
Public Works
Streets i m des) 170 170 170 170 170 174 159 159 159 159
Trarr•.cSgr.ao 99 98 98 98 98 98 97 99 99 99
Parks,roc realion 4.culture
Acreage 201 201 201 201 201 201 201 291 212 200
Tatar Parks 13 13 13 13 13 13 13 13 14 13
Playgrounds 16 16 16 16 16 15 16 15 T6 9
Base alpsormall damoros 8 5 8 8 8 8 8 B 9 11
Saccernomatlr T,elds 9 9 9 9 9 9 9 9 9 7
basketball courts 11 11 11 11 11 11 11 11 11 9
Tennis GaAs 10 10 10 10 10 10 10 10 10 10
Voleyrarl CeucW 8 8 8 B 8 B B 8 6 10
communry.Centers 2 2 2 2 2 2 2 2 2 2
Skateboard Parks 2 2 2 2 2 2 2 2 2 2
Aquatic Center (2) 1 1 1 1 1 1 1
Commercial Office Space
I Parkvier once Corn peal •
Leaseabte Space{square feel 50,322 50.322 50,322 50,322 50,322 50.322 50.322 50.322 50,322 50,322
Occupancy Rate • 8495 90% 90% 86% BB% 83% 90% 97% 98% 100%
Number of Tenants by Type
Government{stato local regPonarl 7 9 8 9 8 10 10 10 11 11
Non-Pram 3 4 3 4 4 5 7 7 5 7
Private 3 1 1 4 5 3 4 6 7 6
Square Footage lease by tenant
Government[Sta;e.local regarai. •- 32,287 33,127 30,907 31,921 31,321 32021 32,696 34617 34,617 34,402
Non-Pmrr 4061 3.561 6,269 3,294 4,467 5215 5,663 4,735 4,735 6,189
Private 6.938 8,688 8,025 8,025 6,513 4.310 7,350 10.212 10,212 9.732
Vacant 8,416 4,946 5,121 7.082 6,021 8,776 4.613 758 758 0
$luniclpal Golf Course _ _ .,- -
IDesert Wulaw Golf Resatl
Courses-Fre Clre and 9ountan Slew 2 2 2 2 2 2 2 2 2 2
Bares 36 36 36 36 38 36 36 36 36 3fi
• Golf Carts 172 172 172 172 172 172 172 160 160 160
. Guenousesquare foarage - 39,000 39000 39,000 39,000 39,000 39,000 39,000 33,000 33,000 33,000
Rounds per Course
Fre Cldr i. 39,424 39.3615 44845 45,841 45,845 45,005 44,745 45.988 46,041 46,688
Mcuntan vow 39,931 40,910 42497 43,160 38,869 41,655 39,178 37.146 34899 43.898
Toter Annual'Rounds 79,355 89276 87,252 89,001 84,314 66,671 53,923 83,134 80,940 99,566
fill Ihr('ru oprrurrs ass uuntnret ern"eeselroeg,pnmseeei.agrermrnr orth usher goryrnmenial rooters.pri,rur firms wed a elreseluols
m prank semres
('reme-verrd am rs r,rcln,k der used Fre protreoose rhro,tgh the f'ermq of Rove-mute.ammo!eonerrd.hr,d+k..rntcrs.
legal sensces and landscape murnrenance
(2)efairmrrc['enter perapans&egos on load 26'11
(outrun Rrurnnk('erran•Sher ffc.Orpr.("Worse.Aare Deporrmvni u/Forrxrn.,4 Fere 1'mrrecrron.
('eel of Pe7 Desert.('oc.hrlla i allot Rec.-man d.Park 15em,r.Hevesrc Kale
J
218 •
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
Note:This section is not required by GASB No.44,however,City believes that statistical
information is beneficial to the reader.
On February 1,2012 the State of California dissolved the City of Palm Desert Redevelopment Agency
as part of the Statewide dissolution of all City Redevelopment Agencies,which in turn created
the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see note 17 and note 18.
219
1L
' 'N5. City of Palm Desert
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Project Area No. 1 -Added Territory{1982}
I
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1 M ESA•VJEw Df7poP.TO1.0- I Project Area No. 3 (1991)
i Project Area No. 4(1993)
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i•- •- L t - January 2017
220
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30,2017
-a.
$52 600,000 115,145M0
DESCRIPTION Tax Allocation Tax Allocation
Revenue Revenue
Bond Bonds
Years 1I w 30
Bond Issue Date _ 01/09/07 03/26/03
Final Maturity Date 04/01/18 08/01/33
Highest]merest Rate • 5 000% 5.00%
Rand Issue Amount S 32,600,000 5 15,745,000
Outstanding Bond Amount S 3,680,000 5 15,745,000
Call Premium 0.00% 1-200%
Band Insurer MBIA MBIA
Resent Requirement 11) 3,260,000 1,574,500
Reserve Balance(1) (IL I I 1
Called Bonds S - $ -
Principle due 17/18 3,680,000 -
Interest Flue 17/18 184,000 769,006
Arbritage Yield Rate 3.8374% 4 9502%
Arbritage-Amount Owed
Arbritage Five Year Due Date: 01/09.122 03/26/18
Non-housing Non-RousingDESCRIPTION Tax Allocation Tax All
_ l m Bond(Exept` -_ Bond d
Years _ _24
Bond issue Date 01 71 ,11131/17
- -Final Maturity Date 10101:30 10/01/41
11 ighest interest Rate 5.000% 4.250°/.
Bond issue Amount S 52,390,609 S 140,130,000
Outstanding Bond Amount S 52,390,000 S 140,t 30,000
(ail Premium 0 00°i 0 00%
FSond Insurer RAM BAM
Reserve Requirement(I) 5,828,809 9.680,207
Reserve Balance(11 {I) (1)
Called Bonds S - S -
Princip]e due 17118 - 1,385,000 2,045,000
Interest Due 17/18 2,482,000 4,566,788
Arbritage Yield Rate 3.659% 3 659%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date 110. 01/31/22 01/31:22
Housing
DESCRIPTION Tax Allocation - TawA ovation
Bend(Exempt)` Bond(Taxab]e)'
Years 14 _ 6
Bond issue Date 01/31/17 01/31/17
Fula]MattuityDate 10/01/31 10/01/23
'Richest Interest Rate 5 000% 3 000%
Bond Issue Amount S 7,365,000 S 45,815,000
Outstanding Band Amount S 7,365.000 5 45,815,000
Call Premium 0 00% 0.00%
Bond Insurer BAM RAM
Reserve Requirement(I I 687,519 4,581,500
Reserve Balance(I) •,__.,-. (11 I I)
Called Bonds S - $ -
Principle due 17/18 - - - _ 355,000 6,770,000
Interest Diu:17l18 319,219 952,888
Arbritage Yield Rate " - - 2 907% 2.907%
Arbritage-Amount Owed -
i.. tageF:.'.ear 01/3122 01/31/22
t I1 A suran bond ou issued by MB IA Insurance,future mane balmnee's will be rem
1 Refunded PA 1-1 tax exempt ponton of bonds(522.07M•519M.524.945M.562.3M,$17 31M,567 6M.54.745M,515.05M.511.02M.515.695M,and 519.2M)
2 Refunded PA 1.1!viable portion of bonds{522 07M.519M,$24 045M.562.3M,517 31M,167.6M.55 745M,515.05M.511.02M.515.695M,and 519.2M)
3 Refunded Rusin tax minim portion of bonds(12 1M and Ss6 IS5M1
4 Refunded Housing taxable portion of bonds(12 1 hl and 556 155M1
Source On of Palm Desert and Successor A6cncy to the Pain Demon Redo ctopmcnt.yens
221
im
City of Palm Desert
Historical Tax Increment/
Redevelopment Property Tax Trust Fund Summary
All Project Areas
-Area No.1 FY 2012/13 : FY 2013/14 FY 2014/15 FY 2015/16 _ FY"2016/17
Tax Increment 48,767,884 51,298.203 53,437,088 56,610,029 58,222,677
Less:
Housing Set-Aside* 9,753.577 10,259.641 10,687,418 11,322,006 11,644,535
SB 2557 714.717 673,261 686,944 629,449 725,403
Gross Pass-Thraughs 18,642,892 20,1 1 1,377 21,241.903 22,961.604 25,052,727
Net Tax Increment 19,656,698 20,253,925 20,820,823 21,696,970 20,800,0I2
RPTTF Amount Deposited 26,848,203 25,090.381 26,530,801 24,696,424 25,131,004
Project Area No.2 f ,iIMUNiii.. FY 20I3/14 FY 2014afgatiFY 2015/16 FY 2016/174
Gross Tax increment 13,700,701 13,556.184 15.232,096 16,232.329 16.302.895
1,ess:
Housing Set-Aside* — 2,740,140 2,7I 1,237 3.046,419 3,246,466 3,260,579
SB 2557 200,429 179,214 192,900 180,457 202,348
Gross Pass-Throughs 4,983,714 4.967,602 5.665,961 6,078,194 6,103,481
Net Tax Increment 5,776,418 5,698,132 6,326,816 6,727,213 6,736,487
RPTTF Amount Deposited 7,568,241 7,017,531 5,441,721 5,547,427 5,887,814
Project Area No.3 FY 2012/13 i FY 2013/14 FY 2014/15 FY 2015/16._ FY 20161171
Gross Tax increment 3,575,242 3,760,421 3,754,999 4.039,902 4,360.574
Less:
-
l[ousing Set-A5ide* 715,048 752,084 751,000 807,980 872,115
SB 2557 ill 52,858 49,871 48,901 45,175 52,745
Gross Pass-Throughs 1,277.864 : 1,377.700 1.371,786 1.510,219 1.656,158
Net Tax Increment 1,529,472 1,580,766 1,583,312 1,676.528 1,779,556
RPTTF Amount Deposited 1,491,532 L 1,357,678 1,237,930 1,290,6231 1,295,156
Project Area No.4 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016117
Gross Tax Increment 11.133,422 1],941,8UU t 13.057,891 13,889.272 14287.533
Less'
Housing Set-Aside* 2,230,684 2,388,360 2,611,578 2.777,854 2,857,507
SR 2557 164,046 156.818 166,634 154,976 178,812
Gross Pass-Thraughs 7,530,089 7,901,830 8,381.422 8,866,804 9,433,947
Net Tax Increment 1,228,603 1,494,792 1,898,257 2,089,637 1,817,267
RPTTLAmount DVIIIMIII. 4,064,1051 3,675,440 I 3.071,966 + 2,443,507 I 2,610,660J
•For calculation purposes only-No requirement to deposit Housing Set Aside post Redevelopment Dissolution.
222
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_ ;ft- City of Palm Deg& , T ,„.•
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73- 10 Fred Waring Drive '•
Palm Desert, CA 92260
760-346-0611
www.cityolpalmdesert,or ;